BULLETIN : Australia-UK FTA Update + Ocean carrier cancelled sailings + Additional Sanctions against Russia.

Update : Australia-UK FTA set to take effect 31 May 2023

Australia-United Kingdom Free Trade Agreement (A-UKFTA) – Original broadcast

• Australia is very advanced in being ready to start this FTA. On 22 November 2022, the A-UKFTA passed the Australian Parliament but we do not yet have a start date. We are awaiting an update from UK as to their own progress. Once the domestic procedures have been completed, Australia and the UK will provide each other with confirmation of their completion through an exchange of diplomatic notes, and the agreement will enter into force 30 days later, or on any other date that is mutually agreed.
• The text of the proposed FTA is on the DFAT portal at https://www.dfat.gov.au/trade/agreements/not-yet-in-force/aukfta/official-text
• Rules of Origin are at Annex 4 above.
• Declarations of Origin from the producer or exporter will be permitted, with the required format and minimum mandatory information required being available at this link https://www.dfat.gov.au/trade/agreements/not-yet-in-force/aukfta/official-text/australia-uk-fta-annex-4a-data-requirements
• Extract from Consignment Rule:

An originating good transported through the territory of one or more non-parties shall retain its originating status provided that the good:

(b) does not undergo further production or any other operation outside the territories of the Parties, other than unloading, reloading, separation from a bulk shipment or splitting of a consignment, storing, repacking, labelling or marking required by the importing Party or any other operation necessary to preserve it in good condition or to transport the good to the territory of the importing Party.

Cancelled Sailings

In response to the current market, carriers have begun publishing cancelled sailings. Carriers can prevent a hard landing by manipulating capacity to meet demand in the face of falling shipping rates. In the absence of any influence on demand, carriers are forced to focus on the one thing they can control: supply. In addition, following the consolidation and restructuring of alliances, they have a much better chance of coping with the so-called ‘danger years’ and turning levers to ensure a soft landing. In the event that demand in 2023 is lower than forecast, carriers will need to adjust capacity more aggressively.

Additional sanctions against Russia announced – Published by Susan Danks  – Freight & Trade Alliance (FTA) Pty Ltd

Prime Minister Anthony Albanese and Foreign Minister Penny Wong announced additional financial sanctions and an export ban, targeting sectors of economic and strategic significance to Russia on 19 May 2023.
These additional targeted measures aim to slow Russia’s war machine. Australia’s action is part of a push by international partners, who are meeting at the G7 Leaders’ Summit in Hiroshima this week.
Australia has already sanctioned more than 1,000 individuals and entities who are supporting Russia’s illegal and immoral invasion of Ukraine.

The new financial sanctions will target 21 entities and three individuals, including:

• Subsidiaries of Russian state-owned atomic energy corporation Rosatom that are involved in nuclear research, infrastructure development and weapons manufacturing.
• The Russian entity created to take over Ukraine’s Zaporizhzhia Nuclear Power Plant, the largest nuclear power plant in Europe.
• Russia’s largest petroleum company Rosneft.
• Russia’s largest gold company Polyus PJSC.
• One of Russia’s largest steel companies Severstal PJSC.
• Defence entities supporting Russia’s war.
• Five Russian banks with operations across the Russian Federation.

The Australian Government will also implement a ban on the export of all machinery and related parts to Russia and areas temporarily under Russian control.
This will prevent Australian goods from aiding Russia’s aggression in Ukraine. The Department of Foreign Affairs and Trade will soon commence public consultation on the export ban, with implementation of the ban to follow.
Businesses or individuals that wish to participate in consultation on the machinery export ban should subscribe to alerts with the Australian Sanctions Office.

Should you have any queries on the above subject matter please contact our office directly.