Latest Trade News and Agreements: February 2021

On December 21, 2020, China announced its import tariff schedule for 2021.
 
Regarding nuts and dried fruits, there are no changes if compared to the 2020 tariff list (see previous post). This announcement does not affect the retaliatory tariffs on US exports to China, which continue to be applicable. Tariffs are effective since January 1, 2021.
 
The listed import tariffs of nuts and dried fruits are the following:
 

* EX indicates that commodities applicable to tentative duties should be within the HS code and should be determined by the Mandarin Chinese commodity description.
 
Announcement of the Customs Tariff Commission
 
USDA GAIN Report: China Lowers Applied MFN Tariff Rates

China 2021 Tariff Schedule

In a letter addressed to EU’s Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, the Chair of the European Parliament’s Agriculture Committee Norbert Lins and the majority of political groups in the committee call on the European Commission “to intervene directly” in the Airbus/Boeing dispute as sanctions stemming from it are “causing severe damage to numerous European agricultural sectors”.
 
As reported by the press office of the European Parliament, the letter requests the Commissioner for Trade “to negotiate with President Biden’s administration a moratorium on sanctions on both sides of the Atlantic which would allow negotiators to find an effective and long-lasting solution to this dispute”.

“A conflict arising in the aeronautical field is gravely impacting agricultural communities across Europe, which are already struggling with the dire impacts of the COVID-19 crisis”, Agriculture MEPs write in the letter.
 
At the same time, the European Federation of the Trade in Dried Fruit & Edible Nuts, Processed Fruit & Vegetables, Processed Fishery products, Spices, Honey (FRUCOM) has co-signed a letter together with 71 other trade associations from the EU and the UA calling on the European Commission President, Ursula von der Leyen, and US President, Joseph R. Biden to remove, or at least suspend all punitive tariffs affecting Trans-Atlantic trade in goods unrelated to the Airbus/Boeing and steel and aluminium disputes.

According to a recent study by the Commission's Joint Research Centre (JRC), trade agreements result in increases in EU agri-food exports, creating a positive trade balance overall. 
 
The study also confirms that the EU's approach to grant a limited amount of lower duty imports (through tariff rate quotas) is the best in terms of protecting vulnerable agri-food sectors in the EU. The study covered the cumulative effects of 12 trade agreements on the agri-food sector by 2030. In addition to this, the analysis includes trade results for the agricultural sector as a whole, and sector-specific impacts on trade, producer prices and production volumes.
 
Commission study finds positive impacts of trade agreements on agri-food sector

Morocco announced the 2021 Tariff Schedule, under the US-Morocco Free Trade Agreement (FTA), according to a USDA GAIN Report issued on January 6, 2021.
 
Among other products, from January 1, 2021, imports of US almonds, were listed at zero tariff and zero quota.
 

 
USDA GAIN Report: Morocco Announces 2021 FTA Tariff Schedule

According to a USDA GAIN Report, on December 31, 2020, the Government of Turkey raised MFN import tariffs for in-shell and shelled walnuts to 15%, except for countries that have a free trade agreement with Turkey.
 

 
US origin in-shell and shelled walnuts are subject to an additional 10% retaliatory tariff (see previous post):
 

 
In addition, the Turkish Government abolished the Housing Development Fund Fee (HDFF) of 320 USD/MT that was being paid for importing walnuts to Turkey. However, the oversight (or reference) price system was re-introduced. The oversight price is a minimum price that the government uses for tax purposes, even if the commodity was purchased below the oversight price.
 
The following oversight (or reference) price was re-introduced:
 

 
Turkey Returns to 2018 Customs Tariff Regime for Walnuts