As the Biden Administration settles into its second month in office some signals have emerged that have offered insights into the potential direction of US trade policy. Key trade officials, including United States Trade Representative (USTR) Katherine Tai and Commerce Secretary Gina Raimondo, have testified before the Senate as part of their confirmation processes.  The testimonies and responses of both nominees, in combination with the recently released USTR “2021 Presidential Trade Policy Agenda” report, have provided an early blueprint of the President Biden Administration’s position on current trade issues — including USMCA, potential free-trade agreements, US policy towards China, and the climate agenda – and possible new directions.

The international community has been watching these early indicators closely in order to gauge the likely track of US trade policy.   Professionals from Steptoe’s trade group who practice in major jurisdictions around the world weigh in with their take on how those jurisdictions are reacting to these early signals from the US.


Continue Reading International Responses to President Biden’s Trade Policy Positions

On 1 January 2021, the Japan-UK Comprehensive Economic Partnership Agreement (Japan-UK CEPA) came into force, after only a few months of intense negotiations. Japan and the UK embarked on formal negotiations on 9 June 2020 and reached an agreement in principle on the deal on 11 September 2020. This remarkably speedy achievement reflected enormous pressure from business leaders to have a deal in place before the end of the UK-EU transition period on 31 December 2020, at which point the UK was to lose coverage under the existing Japan-EU Economic Partnership  Agreement (EPA) in light of Brexit.

The Japan-UK CEPA, essentially a “rollover” of the prior Japan-EU EPA, ensures that business between the two countries avoided falling back onto minimum WTO trading terms. Indeed, early data suggest the Japan-UK CEPA accomplished its goal: according to a survey conducted by the Japan External Trade Organization in early 2021, roughly 10% of survey participants already rely on the terms of the Japan-UK CEPA. Moreover, over 80% of other survey participants are considering relying on CEPA in the future.

To fully benefit from the Japan-UK CEPA, importers as well as exporters of goods need to understand how and when they can claim preferential tariff treatment. Once preferential tariff treatment is granted, customs duties will be reduced or eliminated completely on originating goods.


Continue Reading Rules of Origin Under the Japan-UK Comprehensive Economic Partnership Agreement

On 23 October 2020, the Japan-UK Comprehensive Economic Partnership Agreement (JUK Agreement) was signed in Tokyo by Japan’s Foreign Minister Toshimitsu Motegi and UK International Trade Secretary Liz Truss. This is the first new international trade agreement the UK has concluded with a major economy since officially leaving the European Union (EU) in January 2020.

The UK-Japan negotiations were conducted with remarkable speed. There was enormous pressure from business leaders on both sides to have a deal in place before the end of the so-called “Withdrawal Agreement” period on 31 December 2020, i.e. the period following the UK’s formal departure from the EU, during which the UK has continued to be treated as an EU Member State (including continued coverage under existing EU trade agreements). The EU had concluded a comprehensive free trade agreement with Japan in 2018 which entered into force in February 2019 (the Japan-EU Economic Partnership Agreement (Japan-EU EPA)). Both the UK and Japan were keen to at least replicate its terms in a UK-Japan deal by late 2020, to ensure continuity. Time therefore was of the essence. On 9 June this year, Ms. Truss and Mr. Motegi met by videoconference and affirmed each other’s intention to engage in formal negotiations. On 7 August, they met again in person, this time in London, to confirm further intensification of the negotiations. Just over three months after launch of formal negotiations, on 11 September, the JUK Agreement was agreed in principle.


Continue Reading The Japan-UK Comprehensive Economic Partnership Agreement: EU Wine in UK Bottles?