China is not looking to escalate its trade war with the U.S. and wants to focus on removing tariffs, not adding them, a Chinese government spokesman said Aug. 28. “We are resolutely opposed to the escalation of the trade war and are willing to resolve the issue through consultation and cooperation in a calm attitude,” said Gao Feng, a commerce ministry spokesman, according to an unofficial translation of a press conference transcript. “The escalation of the trade war is not conducive to China, not to the United States, and is not conducive to the interests of the people of the world.”
Almost half of companies that responded to the U.S.-China Business Council's annual survey on the business climate in China said they have lost sales in China since the trade war began. The most common reason is because of retaliatory tariffs on U.S. imports to China, according to these 100 multinational firms based in the U.S. Another third said they lost sales because of U.S. tariffs.
The government of Canada issued the following trade-related notices as of Aug. 28 (note that some may also be given separate headlines):
Canada's import controls apply to all milk protein substances (MPS) with a milk protein content of 85% or more of dry matter weight if the imports don't qualify for a trade, Global Affairs Canada said in an Aug. 28 message to industry. "If a product does not qualify as originating under the concerned trade agreement, or if transhipment requirements are not satisfied, an import permit is required," the agency said. MPS imports from a NAFTA country, an EU country or other EU-Canada Comprehensive Economic and Trade Agreement beneficiary, Chile, Costa Rica or Israel "are exempted from Canada's import permit requirements for MPS," GAC said.
Canada’s accession to the United Nations Arms Trade Treaty requires “significant amendments” to the country’s Export and Import Permits Act that will broaden its current export control regime, according to an August post from the McMillan law firm.
Indonesia and Mozambique signed a preferential trade agreement Aug. 27 that will cut tariffs on trade in some products between the two countries, according to a report from the Mozambique News Agency. Under the deal, Mozambique will lower tariffs on 217 tariff lines covering fishery products, fruits, palm oil, margarine, rubber, soap, paper products, and textile products, according to a report in the Indonesian news magazine Tempo. Indonesia will cut tariffs for Mozambique on 242 tariff lines covering products including cotton, tobacco and nuts, Reuters said.
China’s Qingdao customs center officially began a "demonstration" to test its “intelligent gate,” which allows for faster clearance of cargo, China’s General Administration of Customs said in an Aug. 28 press release, according to an unofficial translation. The first test of the new system was on Aug. 22 with a container truck rolling through the gate of the customs facility and into an adjacent "logistics park." The gate “automatically” obtains vehicle information and container number from cargo entering through the gate and identifies the goods being transported, China said. China said the gates will reduce “logistics and transportation” costs for companies.
China will soon begin accepting a second round of applications for exemptions from its retaliatory tariffs on U.S. goods, according to an Aug. 28 report from Xinhua, China’s state run news agency. The exemptions are for the tariffs on $60 billion in U.S. goods that China imposed Sept. 24, 2018. Companies can begin filing online applications for the exclusion process between Sept. 2 and Oct. 18, the report said. Xinhua said the China State Council’s Customs Tariff Commission will “offer temporary tariff exemptions or refunds of added duties” based on the applications. China also plans to launch an exclusion process for the most recent round of retaliatory tariffs on $75 billion worth of U.S. goods announced Aug. 23 (see 1908230004).
Japan issued statements clarifying its position under its new export restrictions against South Korea, saying certain export conditions will be tightened but others will not be impacted. The measures, which took effect Aug. 28, place restrictions on chemicals -- and other goods -- used to make computer chips and other high-tech products (see 1908020023).
The State Department approved potential military sales to Denmark, Hungary, Japan, Lithuania and South Korea, the Defense Security Cooperation Agency said Aug. 27.