News

APHIS Directive on Soybean Shipments to China

The U.S. Animal and Plant Health Inspection Service is implementing a new directive regarding all exports of soybeans to China (a copy of the directive can be found here). The directive applies to all exports of soybeans from the U.S. to be imported into China that need a phyto-sanitary certificate (APHIS Form 691) AND is the first step in the “system approach” for which APHIS and USDA will be providing more details soon. One aspect of the “system approach” is that China AQSIQ may require some actions like preventing weed seed exposure to the environment, denaturing or cleaning of weed seeds from shipments for which the Form 691 remarks section indicates “This consignment exceeds 1% FM.” The “systems approach” will be implemented in agreement with China’s AQSIQ that assures that no shipments of U.S. soybeans will be rejected because of a weed seed content or foreign material.

For the next two years, no shipments of U.S. soybeans will be rejected because of a weed seed content or foreign material and that the response will be monitored for 2 years before any additional action is taken.

ACTION: We have explained  to APHIS that Phytosanitary Certification Change for Soybean Shipments Going to China potentially cuts across contracts and, if necessary, should be taken at the beginning of a crop year with advance notice before the growing season. We have also indicated that if they must deploy during this marketing year a minimum of 3 month grace period is needed to accommodate any potential contractual changes.

High-Level Steering Group Meeting

The U.S. Food and Agriculture Dialogue for Trade High-Level Steering Group held a successful meeting with Tiger Minsok Chu, President of the Korea International Trade Association. The Steering Group discussed with Mr. Chu discussed cooperative efforts that U.S. and Korean industry can take to support bilateral trade and potential pending renegotiation of the Korean-U.S. Free Trade Agreement. During the meeting Mr. Chu expressed his support for the bilateral relationship and his hope that growing trade and investment ties between the United States and Korea will not be damaged in any upcoming talks.

U.S. ITA Request for Advisory Committee Nominations

The International Trade Administration is requesting nominations for the Advisory Committee on Supply Chain Competitiveness. The Committee advises the Secretary of Commerce on the necessary elements of a comprehensive policy approach to supply chain competitiveness designed to support U.S. supply chains for goods and services in the domestic and global economy, and provides advice to the Secretary on regulatory policies and programs and investment priorities that affect the competitiveness of U.S. supply chains.

Applications must be received before 5:00pm on January 12, 2018. See the Federal Register posting here.

Intersessional Round of NAFTA Negotiations

Representatives from Canada, the United States, and Mexico met in Washington D.C. this week to try to make progress on less contentious chapters of NAFTA after last month’s Mexico City Round failed to resolve major differences. This weeks meeting was meant to discuss and solve technical issues within areas deemed as non-controversial between the three parties. Talks are expected to continue in late January in Montreal where negotiators will try to make progress in order to wrap up discussions by the self-imposed March deadline.  

New WTO Trade Restrictions Report

A recent WTO report finds that WTO members introduced fewer trade-restrictive measures from mid-October 2016 to mid-October 2017 compared to the previous year. At $169 billion, the import-facilitating measures adopted during the review period covered twice the value of the import-restrictive measures implemented, which totaled $79 billion. The initiation of trade remedy investigations remained the most frequently applied trade-restrictive measure at around 46% of the total, with the initiation of antidumping investigations accounting for 83% of all trade remedy initiations. India led the way with 55 new AD investigations during July 2016-June 2017, followed by the US (47), Argentina (21), Canada (19), Turkey (19), and Australia (18).

You can read more about the report here.

Court Rules on Signing Contracts

A recent U.S. Court of Appeals held that an arbitral clause in a contract must be signed by the parties in order to be enforceable. The defendant sought to compel arbitration based on an employment contract between the seaman and the vessel owner. The court ruled in its that “the litigant prove the agreement is in writing and ‘signed by the parties” in order for a legitimate claim to be filed.

You can read the full decision here.

EU, IGC, Coceral and IGTC events in Brussels, Belgium – December 3-6

Gary is back from a successful meeting in Brussels, Belgium with grain trade leaders and IGTC members and corporate stakeholders. While in Brussels, Gary attended the International Grains Council’s 46th Session on December 5th, where he presented before IGC members (to view his presentation please click here). The IGC meetings bring together government representatives and industry stakeholders from around the world. As per the member-endorsed agreement in Buenos Aires in December 2015, the IGTC remains a committed partner at the IGC, providing grain trade updates at Council sessions, conferences and the Market Conditions Committee meetings. In addition, Gary also attended the following meetings and events:

  • A European Commission Grains Outlook Seminar on December 4. At the Seminar, the Commission will present its outlook for global grain supply, demand and trade.
  • The Coceral Annual Reception co-hosted by the IGTC. Invitees will include all 55 IGC member governments as well as Brussels agri-value chain representatives and officials from the EU institutions.

A trip report for this meeting will be available soon. 

IGTC Newsletter

The latest IGTC newsletter is now available! This week’s newsletter includes information about the IGTC delegation in Brussels, a leadership change at the IGC, and the publication of the November 2017 IPPC Standards Committee report.

For more details, read the IGTC Newsletter here or visit the IGTC website at www.igtcglobal.org.

Clause 20 Certifications

Over the past few weeks NAEGA President and CEO Gary Martin has issued two Clause 20 certifications upon the recommendation of a NAEGA Clause 20 panel.

Hurricane Harvey – August-September 2017

This request for certification resulted when delivery was prevented at the applicant’s elevator due to actions by Federal, state or local governments or authorities. Leading up to and following the passing of Hurricane Harvey through the Houston area, the U.S. Coast Guard limited traffic and closed the Port of Houston, preventing vessels from accessing the applicant’s facility and preventing loading of the commodity. The panel recommended and the President certified that a valid cause existed between 1500 CDT on August 24, 2017 and 0306 CDT on September 5, 2017.

Hurricane Nate – October 2017

This request for certification resulted when delivery was prevented at the applicant’s elevator due to actions by Federal, state or local governments or authorities. Leading up to and following the passing of Hurricane Nate through the New Orleans area, Plaquemines Parish issued a mandatory evacuation that resulted in the closing and suspension of labor at the applicant’s elevator. This prevented delivery of the commodity at the applicant’s facility. The panel recommended and the President certified that a valid cause existed between 1500 CDT on October 6, 2017 and 1300 CDT on October 8, 2017.