Trendwatch: US blocks quick USMCA extension, putting annual review process into motion; EU and China agree to three months of trade talks; CBP launches first of 2 tariff refund expansions

US blocks quick USMCA extension, putting annual review process into motion 

The United States, Mexico and Canada will not immediately extend the countries’ trilateral free trade agreement for another 16 years, as they continue to iron out potential changes to the pact. 

Leaders from all three countries met virtually Wednesday to kick off the joint review process for the United States-Mexico-Canada Agreement, a process that was required by the pact. 

CBP launches first of 2 tariff refund expansions 

U.S. Customs and Border Protection has completed enhancements to its refund processing system for now-defunct tariffs to include entries for shipments that are awaiting reconciliation of their final duty calculations, the agency said in a June 29 notice. 

Importers and brokers can now submit these entries through the agency’s dedicated refund portal for tariffs that the Supreme Court struck down earlier this year, the agency said. 

EU and China agree to three months of trade talks 

China and the European Union will soon enter into three months of negotiations, in hopes of settling what's become a contentious trade relationship.  

According to The Guardian, the talks will come with an October deadline, and will cover four areas: rebalancing trade and investments, export controls on rare earths, intellectual property rights, and World Trade Organization reforms. The two sides also agreed to a joint monitoring mechanism, which will allow each party to keep track of sudden surges in imports and exports between them. 

Oman clarifies its stance on Hormuz as talks with Iran widen

An uneasy calm appears to be prevailing in the Strait of Hormuz after the exchanges of fire between the United States and Iran, which followed the Iranian attack on the Singapore-flagged container ship Ever Lovely (IMO 9629110) on June 25. Both sides agreed on June 29 to stand down from these recent exchanges, to observe the ceasefire in a tighter manner, and also to resume technical discussions in Doha. In the background, and separate from the US-Iranian negotiations in Bürgenstock, bilateral discussions involving Iran and GCC states are taking place, with the GCC countries concerned that the talks in Switzerland will not deliver a lasting solution acceptable to all parties.

India duty waiver on petrochemical products extended till July 15

The Centre on Tuesday extended the full customs duty exemption on imports of select petrochemical products till July 15, allowing manufacturers to continue sourcing critical input materials at lower costs as supply chains are recovering from disruptions triggered by the West Asia conflict.

The decision is expected to provide relief to a wide range of sectors such as plastics, packaging, textiles, pharmaceuticals, chemicals and auto components by keeping input costs in check and ensuring adequate availability of critical petrochemicals in the domestic market as the global supply situation gradually normalises.