GSP facilities and Free Trade Agreements in China

GSP facilities

China does not qualify for Generalised Scheme of Preferences (GSP) status with the United States and has had its GSP status with the EU canceled. China does enjoy GSP status with Australia, Japan, Kazakhstan, New Zealand, Norway, the Russian Federation, Switzerland and Turkey (WTO). The US market China currently enjoys Permanent Normal Trade Relations (PNTR) with the US. Additionally, as part of a long time trade dispute, the US is initiating five-year Sunset Reviews of the antidumping and countervailing duty order for frozen warm-water shrimp from China. Since 2006, roughly US $268 million has been distributed to US shrimp industry to compensate for imported shrimp from countries which has benefited from subsidies or been dumped in the US market. Countries impacted by shrimp exports in 2016 included Brazil, Ecuador, China, India, Thailand and Vietnam. In 2016, United States Custom and Border Protection data reports total funds available from China under the Continued Dumping and Subsidy Offset Act (CDSOA) were US $112,623.79 (ranked 3rd after Thailand and India). Because this case was based on non-value added products, Chinese processors began circumventing CDSOA by producing further processed breaded shrimp products at a significantly lower cost than US breaded shrimp and found a receptive market in the US. Thus, the unintentional consequence of CDSOA was to forever alter the US breaded shrimp industry domestic production base. Crayfish tail meat from China is also the subject of a US trade dispute. A full list of import tariffs for fish and seafood products can be found at the United States International Trade Commission website, under Research Tools, HTS (Harmonized Tariff Schedule). For seafood products see chapters 3 and 16. A full list of import tariffs for fish and seafood products can be found at the United States International Trade Commission website, under Research Tools, HTS (Harmonized Tariff Schedule). For seafood products see chapters 3 and 16. The Japanese market Japan is the second largest trading partner of China in Asia, after Hong Kong, and was responsible for 7% of Chinese exports valued at US$ 167 billion (OEC, 2016). The two countries have, besides the United States, the largest economies in the world and need each others’ support for further economic growth (Investopeda, 2016). China enjoys a GSP status in Japan. Actual tariffs for seafood products can be found on the Japanese Customs website under Japan’s Tariff Schedule as of January 1st 2017, Chapter 3 and 16. EU market China is the EU’s second-largest trading partner, after the United States. In December 2016, China settled a trade dispute with Norway which heavily impacted seafood trade, especially farmed Norwegian Atlantic salmon imports by China. The dispute arose over the award of a Nobel Peace Prize to a Chinese dissident Liu Xiaobo in 2010. In 2016, Chinese imports of farmed Atlantic Salmon were estimated to be between 70,000 and 80,000 mt and imports were estimated to be approximately 5% of the total. Norway is now hoping to increase Atlantic salmon exports to 40,000 to 50,000 mt in 2017. The GSP status of China in the EU has been canceled, so normal import tariffs apply.

Free Trade Agreements

China has 13 Free Trade Agreements in operation, 8 under negotiation and 4 under consideration:
  • China – ASEAN Free Trade Area (CAFTA) Status: Signed in November 2002, effective entry into force since 1 January 2010
  • China – Pakistan FTA Status: signed in November 2006, effective entry into force since July 2007
  • China – Chile FTA Status: signed in November 2005, effective entry into force since October 2006
  • China – New Zealand FTA Status: signed in 7 April 2008, effective entry into force since 1 October 2008
  • China – Singapore FTA Status: signed in 23 October 2008, effective entry into force since 1 January 2014
  • China – Peru FTA Status: signed in 28 April 2009, effective entry into force since 1 March 2010
  • China – Mainland and Hong Kong Closer Economic and Partnership Arrangement Status: signed in 2003
  • China – Mainland and Macau Closer Economic and Partnership Arrangement Status: signed in 2003
  • China – Costa Rica FTA Status: effective entry into force since 1 August 2011
  • China – Iceland FTA Status: signed in 11 November 2011, effective entry into force since 1 July 2014
  • China – Switzerland FTA Status: signed in 6 July 2013, effective entry into force since 1 July 2014
  • Vietnam – South Korea FTA Status: signed in 2 June 2015, effective since 20 December 2015
  • Vietnam – Australia FTA Status: signed in 5 May 2015, effective since 20 December 2015
Furthermore, China is also negotiating an FTA with:
  • China – Gulf Cooperation Council (GCC) FTA
  • China – Norway FTA
  • China – Japan – Korea FTA
  • Regional Comprehensive Economic Partnership (RCEP)
  • China – ASEAN FTA Upgrade Negotiations
  • China – Sr- Lanka FTA
  • China – Maldives FTA
  • China – Georgia FTA
China Free Trade Agreements under consideration:
  • China – India Regional Trade Arrangement Joint Feasibility Study
  • China – Columbia FTA Joint Feasibility Study
  • China – Moldova FTA Joint Feasibility Study
  • China – Fiji FTA Joint Feasibility Study
  • China – Nepal FTA Joint Feasibility Study
  • China – Mauritius FTA Joint Feasibility Study
China is a member of one Preferential Trade Agreement
  • Asia Pacific Trade Agreement

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