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What to Expect for Trade Compliance in 2020

The world of international trade continues to be in a state of constant change. Here are a few topics that will help shape the international trade landscape in 2020.

1. Regional Comprehensive Economic Partnership: The RCEP is a trade agreement launched in 2012 in Cambodia, that involves 16 Asian countries that together make one third of the entire world’s Gross Domestic Product. However, since launched, the agreement has never been signed.

All countries part of the Association of Southeast Asian Nations (ASEAN) and other major economies such as China, Japan, and South Korea commonly decide to finally commit to signing the agreement in Thailand in 2020. The Prime Minister of Malaysia hopes that the agreement would be signed “as soon as possible." India decided not to move forward with it.
According to CNBC, the RCEP should be seen at the world’s largest trade deal. The trade agreement involves lowering trade tariffs among participant countries, standardizing customs rules and procedures and widening market access with countries in Asia that aren’t part of any trade deals.
According to some analysts, the U.S.– China trade war boosted the urgency of Asian countries signing this agreement as the local economies are being hurt.

2. BREXIT: As Boris Johnson became elected as the Prime Minister on July 24^th., 2019 under the campaign of, “Get BREXIT Done." The PM committed to the October date for Brexit and refuses to rule out the possibility of a “no-deal’ Brexit, according to the House of Commons Briefing Paper:

October 19th, 2019: A rare Saturday sitting of Parliament. The Prime Minister presents his new Brexit deal but is defeated when the Letwin amendment is passed. The PM later writes to Donald Tusk, in accordance with the Benn Act, to ask for a Brexit extension.
October 21st, 2019: The European Union (Withdrawal Agreement) Bill is introduced to Parliament. 22 October 2019: The EU (Withdrawal Agreement) Bill passes its second reading, but the programme motion setting out the timetable is defeated. The PM pauses the legislation.
October 28th, 2019: EU Ambassadors agree to a Brexit extension to 31 January 2020. The Prime Minister confirms the UK’s agreement with this extension.

3. U.S. Presidential Elections: In 2020, the world will be watching the news as the presidential election occurs in the United States. The current U.S.- China trade war, will surely be a big player in the runup to the election.

Expect threats, retaliation, and attempts at reconciliation to continue, until a legitimate deal is reached. To date, the U.S. has applied tariffs to U.S.D. $550 billion on Chinese goods and China has increased tariffs on US goods for US$185 billion worth of goods.

2020 will bring a lot of challenges and opportunities to the trade community. As such it is important to stay ahead of any regulatory changes and tariff increases. If you have any questions, please contact Allyn International at sales@allynintl.com.

Contributor: Matheus Silva

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.