Trade Update – July 15, 2024

• The African Group has proposed incumbent WTO Director General, Ngozi Okonjo-Iweala for a second term.
• We are at a crossroad in the multilateral system, with an opportunity to shape a global win-win approach for trade and environment, says WTO Deputy Director General Jean-Marie Paugam at Trade Horizons Conference in Dublin.
• WTO Sub-Committee on LDCs deliberated on ways to boost services trade by LDCs.
• WTO is key in enhancing connectivity within global supply chains, says Deputy Director-General of WTO, Angela Ellard at 30^th United Nations Centre for Trade Facilitation and Electronic Business Plenary.
• WTO’s Trade Monitoring Update shows that WTO Members are introducing trade facilitating measures despite a rapid increase in industrial policy subsidies, particularly in areas limited to climate change and national security.
• India circulated a communique to the WTO on July 11, 2024, analysing the impact of the Chair’s proposed overcapacity and overfishing subsidy disciplines on global marine fish stocks’ sustainability, highlighting potential issues with the two-tiered demonstration requirement and the diluted disciplines on distant water fishing nations, which could undermine sustainability goals and disproportionately burden developing countries.
• India, Austria reaffirm support for ongoing talks on India-EU trade pact.
• India has warned UK’s new Labour government not to impose a deadline on FTA talks.
• Mutual Recognition Agreement between India and Taiwan to facilitate trade of agricultural goods came into force on July 8, 2024.
• India and ASEAN to hold FTA review talks in Jakarta on 29-31 July and finalize changes by year-end.
• UK and Gulf Cooperation Council are keen to sign a free trade agreement in 2024, says GCC Secretary General Jasem Mohamed Albudaiwi.
• The Bay of Bengal Economic Dialogue called for conclusion of a proposed FTA between the member-states of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

Europe

• The constitutive meeting of the EU International Trade Committee is set to take place in Brussels on July 23, 2024.
• The European Commission has sent preliminary findings to X regarding its breach of the Digital Services Act in areas linked to dark patterns, advertising transparency and data access for researchers.
• The European Commission has approved under EU State Aid Rules, a 122 million euros Lithuanian measure to support AB Achema in decarbonizing its fertilizer production processes.
• The European Commission has raised 9 billion euros of EU-bonds in its 7^th syndicated transaction for 2024.
• The European Commission has allocated 77 million euros in emergency support to farmers from the fruit, vegetables and wine sectors in Austria, Czechia, Poland and Portugal.
• The European Commission has initiated an in-depth investigation to assess whether State aid granted by Slovakia to the Slovak company, NAJPI a.s. for setting up a glass sand extraction site is in line with EU State Aid Rules.
• China has launched a probe into EU’s trade barriers.
• EU AI Act was published in the Official Journal on July 12, 2024. It is set to come in force from August 1, 2024.
• EU and Turkey had a high-level trade dialogue wherein Turkey asked for the Customs Union between both the countries to be updated and developed in face of the changing structure of international trade.
• China’s EV exports have slowed in June due to imposition of tariffs by EU.
• Germany may abstain during EU vote on tariffs against Chinese EV exports, say Chinese experts.
• Hungarian presidency of the EU Council may reignite debate on deregulation of genetically modified crops.
• Argentina has introduced a new certification scheme that guarantees its EU meat exports come from sustainable sources that are free from deforestation.
• China-Finland ties, once tight, are losing shape as sanctions against Russia erode trade links.

UK

• The UK government has announced a plan to align UK Infrastructure Bank and the British Business Bank under a new National Wealth Fund that will invest in new, upcoming industries of the future.
• The new Labour government has lifted two restrictive conditions from the turbine planning law, effectively removing the de facto ban on onshore wind turbines, a move celebrated by the UK energy industry.
• UK’s Prime Minister Starmer has appointed Jonathan Reynolds as the Secretary of State for Business and Trade.
• UK’s Prime Minister Starmer has appointed Gareth Thomas, Justin Madders and Baroness Jones of Whitchurch as new junior ministers to the Department of Business and Trade.
• The UK’s Deputy High Commissioner to India, Caroline Rowett called upon Punjab’s Horticulture Minister, Chetan Singh Jouramajra to discuss growth opportunities for Indian litchi exports to the UK.
• A study by Chartered Institute of Export & International Trade and Oxford Economics predicts that exports from UK will continue to underperform in 2024.
• The UK government is concerned that the EU’s new entry/exit system for non-EU nationals, starting in October, will disrupt supply chains.
• The Welsh government has released a policy document outlining their approach to trade policy and its nexus with the Well-being of Future Generations (Wales) Act, 2015.

USA

• US Department of Commerce is seeking comments on proposed updates to AD and CVD regulations.
• US Forced Labour Enforcement Task Force has added aluminium, PVC, and seafood as new high priority sectors for enforcement of Uyghur Forced Labour Prevention Act.
• New data from the US Department of Commerce shows that data services exports continue to serve as a key driver of broader gains for the US economy.
• The White House has issued a proclamation introducing new rules targeting firms from China and other countries that are routing shipments of steel and aluminium through Mexico to evade tariffs.
• US Bureau of Industry and Security has issued guidance on complying with letters that identify transaction parties at risk of diversion, detailing procedures for assessing and mitigating diversion risks in export transactions.
• US Federal Trade Commission to sue drug managers over insulin prices.

India

• India, Russia target $100 billion bilateral trade by 2030.
• India is set to import coking coal from Mongolia on a trial basis from the end of July.
• In the current fiscal year, Nepal’s imports from China have increased, while India’s share has seen a fall.
• India’s major ports see 4% traffic growth in Quarter 1 of this fiscal year, led by coking coal imports, higher container handling.
• India boosts Russian grain imports as Indian Prime Minister thanks President Putin for fertilizer supply.
• India is looking to seek energy deals with Rosneft and other leading Russian oil firms as a part of a broader push to boost bilateral trade between India and Russia.
• Russia’s leading fertilizer maker, Phosagro, has called upon India to drop its 5% import duty for Russian producers to ensure stable supplies.
• UNCTAD Global Trade Update for July 2024 reveals that global trade growth in the first quarter of 2024 was primarily driven by India, China and US.
• PLI scheme boosts telecom exports, trims trade deficit to Rs. 4,000 crore.
• Commerce Minister Piyush Goyal to visit Switzerland to work on $100 billion FDI goal under India-EFTA pact.
• India’s e-commerce policy likely to be on backburner amid sluggish FDI inflows.
• Indian Prime Minister and BIMSTEC Foreign Ministers held a meeting to discuss ways to strengthen regional cooperation.
• India’s security market is projected to grow to $15 billion in 5 years.
• From cheese to whisky: India returns 1,500 imported foods amid safety woes.
• Government may unveil new medical device policy to cut imports and promote ‘Make in India.’
• India’s state-run refiners are jointly negotiating a long-term oil import deal with Russia.
• Economists have sought lower import tariffs at pre-budget meeting with PM Modi.
• Kerala’s fisheries sector hit with severe crisis as Japan, following the United States, has slashed its shrimp imports.
• India’s diesel exports to Europe surge four-fold in June amid better margins.
• Group of Ministers to decide on lifting export ban on certain non-basmati rice: Minister of Commerce Piyush Goyal.
• Indian spice exporters are conscious of quality; spice shipment issues are miniscule: Minister of Commerce Piyush Goyal.
• Commerce Ministry targets $100 billion electronics, textile exports by FY30.
• India’s sea food exporters in troubled waters as shipping freight rates see a sharp rise in shipping freight rates.
• Goldman Sachs has predicted that India’s services exports will rise to $800 billion by 2030, up from $340 billion in 2023.
• India has widened use of foreign currency accounts in GIFT City.
• As a result of Toyota Motor’s lobbying efforts, Uttar Pradesh is set to waive some levies on hybrid cars which will make them 10% cheaper.
• India to sell wheat from state stocks to flour millers, biscuit makers.
• Commerce Minister Piyush Goyal to hold meetings with G7 trade ministers in Italy next week.

• The Directorate General of Foreign Trade issued a Trade Notice on July 10, 2024, providing clarifications on Trade Notice No. 07/2024-2025.
• The Bureau of Indian Standards have issued general guidelines on July 10, 2024 regarding certification of electric instantaneous water heaters.
• The Bureau of Indian Standards have revised product manual for IS 368 : 2014 ‘Electric immersion water heaters – Specification (Fifth Revision)’ and IS 302-2-201 : 2008 Safety of household and similar electrical appliances: Part 2 particular requirements: Sec 201 electric immersion water heaters (First Revision)’ on July 10, 2024.
• The Bureau of Indian Standards have revised product manual for IS 2082 : 2018 ‘Stationary Storage Type Electric Water Heaters – Specification (Fifth Revision)’ and IS 302-2-21 : 2018 ‘Safety of Household and Similar Electrical Appliances Part 2 Particular Requirements Section 21 Stationary Storage Type Electric Water Heaters (Second Revision)’ on July 10, 2024.
• The Bureau of Indian Standards has established amendments to standards for Canvas Shoes, Rubber Sole; Household Laundry Detergent Powders; and Linear Alkyl Benzene, on July 11, 2024.
• The Bureau of Indian Standards notified the establishment of new Indian standards on June 19, 2024, for products including insulating liquids, steel cylinders for compressed gases, and photovoltaic modules, with specifics and concurrent validity dates provided for each standard.
• The Bureau of Indian Standards has established new standards for products including bayonet lampholders, shot firing cables, and flexible steel conduits on June 25, 2024, with concurrent validity for previous standards until their withdrawal on specified dates.
• The Ministry of Finance has issued a notification on July 12, 2024 to amend Notification No. 50/2017-Customs in order to include new exemptions for aircraft components and research equipment, effective from July 15, 2024.
• The Ministry of Finance, following the recommendations of the GST Council meeting, has made amendments to various tax rates and exemptions, including products like cartons, boxes, and cases of corrugated or non-corrugated paper or paperboard, milk cans made of iron, steel, or aluminum, and solar cookers, effective from July 15, 2024, as notified on July 12, 2024.

• Indian companies stay put in sanctions-hit Russia.
• India has established seven new defence projects with private enterprises under the Technology Development Fund to reduce country’s dependency on defence imports.
• Indian Customs authorities have intercepted Karachi-bound Chinese shipment of banned chemical Ortho-Chloro Benzylidene Malononitrile at Kattupalli port in Tamil Nadu.
• Iranian court has ordered US to pay $6.7 billion after sanctions allegedly stopped special bandage supply.
• The General Court of EU has annulled the sanctions listing of two officials from Democratic Republic of the Congo on account of change in regime.
• The Italian Ministry of Foreign Affairs issued a national control list for dual-used goods and technology pursuant to Article 9 of the EU Dual-Use Regulation.
• China sanctions US firms, officials over Taiwan arms sales.
• US announces sanctions on Israeli settlers over West Bank violence.
• US Bureau of Industry and Standard has added six new entities from China, South Africa, UAE and UK to the Entity List.
• Shein’s plans to sell supply-chain technology and services around the world have U.S. cybersecurity experts warning of the potential for Chinese spying.
• US OFAC has de-listed two Russian nationals from the SDN list who were originally sanctioned for circumventing US sanctions by procuring diving systems for Russian government agencies.
• US businessman admits to illegally exporting sensitive aviation technology to Russia.
• The US BIS has published guidance detailing actions to inform about diversion risks and responsibilities for compliance with Export Administration Rules, including additional mitigation steps for companies and universities.
• NATO slams growing arms trade between North Korea and Russia.
• Reports suggest that Israel is advancing embargo on Turkish imports, Israeli PMO has denied the same.
• China posts record trade surplus as foreign importers rush to beat US tariffs.
• Russia’s crude shipments crashed by the most since the 2022 invasion of Ukraine.
• Russian anti-trust regulator, Federal Antimonopoly Agency wants to reinstate a gasoline export ban from August to help meet fuel demand during harvesting season.
• 53 Russian oil tankers are drifting empty and idle across world’s oceans, stranded by European sanctions.
• New Zealand sanctions Russians involved in military-industrial complex, actors providing military assistance to Moscow.
• South Korea ramps up defence exports to Europe, tapping growing demand in the region due to the Russo-Ukraine war.