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Those attempting to track the meandering Brexit trail in the three years since the referendum which decided that the United Kingdom (UK) would leave the European Union (EU) are well aware that the general election on 12 December most likely will determine the path forward. What that might mean for the cannabis market in the

More than a quarter of pesticides used by U.S. farmers are banned in the European Union. Atrazine which the U.S. Environmental Protection Agency estimates to be the most widely used herbicide in the U.S., for instance, was banned in the EU in 2003 due to concerns that it is a groundwater contaminant. In April 2018,

The crowd of journalists, functionaries, trade association reps, and political junkies hovering in Brussels for fresh Brexit news grew over the course of the last week following what appeared to be a positive meeting between UK Prime Minister Boris Johnson and Irish Taoiseach Leo Varadkar. That meeting set the stage for what became intensified EU-UK

On 28 June 2019, the European Union and the South American customs union Mercosur (Brazil, Argentina, Paraguay, and Uruguay) struck a sweeping trade agreement covering almost 100 billion dollars’ worth of bilateral trade annually. Twenty years in the making, with stop-start trade negotiations having started in 1999, the EU-Mercosur political agreement is considered by the negotiating parties on both sides as a significant achievement. However, the terms of the deal – which have been published in draft individual chapters as both sides undertake a legal review of the text –  have elicited sharp criticism.

The European Commission characterises the accord as its most lucrative to date, saving businesses about 4 billion euros ($4.55 billion) in tariffs on exports, quadruple the amount achieved on its trade deal with Japan. For Mercosur, this would be its first deep trade agreement, which could spur economic growth in the region and strengthen Mercosur’s ability to compete in international markets. The Commission therefore has been quick to defend the deal, highlighting that it includes strong provisions on environmental protection and promotes sustainable development, notably by insisting that both parties maintain commitments and engagement under the Paris climate change agreement. EU Agriculture Commissioner Phil Hogan has been particularly vocal in support of the deal, underscoring that while including some trade-offs, it opens up new markets for EU agricultural producers and protects European food standards. While Irish Prime Minister Leo Varadkar has stated that he would not vote for the deal if it runs contrary to Ireland’s interests, Varadkar recently agreed to Hogan staying on in the next European Commission term, thereby positioning him to continue his strong advocacy in support of the agreement.

EU parliamentarians, several EU Member States and lobby groups, on the other hand, have decried the EU-Mercosur agreement as being detrimental for the environment, food safety and the EU’s agricultural sector. Surrounded by protesting Irish farmers, on 11 July,
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The European Union has just released a list of U.S. products for retaliatory tariffs following the recent announcement by the U.S. of its intent to levy additional duties on European products. The EU list covers nearly $23 billion worth of U.S. goods including tractors, luggage, frozen fish, fruit, wine, ketchup, nuts, and orange juice. 

With or without a deal and unless there is a last minute extension, the United Kingdom will leave the European Union (EU) at 11 pm London time on 29 March 2019.  Since triggering the exit process, the UK has worked towards having a deal in place that would ensure a smooth departure, including a transition period that would largely preserve the status quo until the end of 2020 or even beyond.   At the same time, however, both the UK and the EU have engaged in contingency planning in the event a deal could not be agreed or failed to be ratified.  For the UK, this has included efforts to revise legislation to remove references to the EU and its agencies to ensure that UK law could function on Day One after leaving the EU.  This process has involved the review of hundreds of legislative acts to create new statutory instruments, many of which have yet to be passed into law.  The legislative backlog means that necessary legislation may not be in place before 29 March 2019.  To avoid a legal gap, the UK adopted the EU (Withdrawal) Act 2018 and provided therein a catch all provision to ensure that EU law that is not addressed elsewhere is retained.

Should the UK leave the EU without a deal, the UK will impose, update and lift sanctions as of 30 March pursuant to regulations issued under the Sanctions and Anti-Money Laundering Act 2018 (the Sanctions Act). Sanctions regimes that are not covered would continue to apply, as retained EU law under the EU (Withdrawal) Act.   Sanctions laws apply to actions taken by UK persons, which includes companies and individuals, in the UK or anywhere else.
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Prime Minister Theresa May’s recent visit to Kenya, South Africa and Nigeria was the latest in the United Kingdom’s global diplomacy effort to secure strategic economic­ partnerships in preparation for the UK leaving the European Union (EU).  In the first visit of a UK Prime Minister to Africa since 2013, a 29 person delegation of government and private sector representatives pursued May’s goal of becoming Africa’s biggest foreign investor within four years.  As a result of the trip, trade and investment deals worth some 300 million GBP were announced, involving everything from automobile manufacturing and digital money transfer services to insurance and agricultural technology. Importantly, the UK also reached a deal with the Southern African Customs Union and Mozambique to facilitate trade and announced major investments in education and voluntary family planning for the future of African youth.

Trade between the UK and Africa already is worth 31 billion GBP annually.  By 2050, a quarter of the world’s consumers will be African. According to the Prime Minister, “With a shared passion for entrepreneurship, technology and innovation, now is the time for UK companies to strengthen their partnerships with Africa to boost jobs and prosperity both at home and overseas.”

According to the African Agricultural Technology Foundation, 233 million Africans are either suffering from hunger or are malnourished; 32 million of these are under the age of five.  While Africa’s economy is driven by agriculture, farming continues to be largely at a subsistence level:  80 percent of the 51 million farmers are small holder farmers.  Further, 95 percent of all farming in Africa is entirely dependent on rainfall.  The challenge under these conditions is to increase food production by 50 to 70 percent by 2050 without destroying the environment.  What will be required is a combination of increasingly sophisticated farming techniques (e.g. precision farming), precision breeding; improved stewardship; access to advancements achieved by modern biotechnology to increase drought tolerance, increase yield, and combat plant pests and diseases; and enabling regulatory policies and frameworks.  Critical is the fact that more efficient agriculture directly translates into freeing women and children to pursue other economic activities and/or education.
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It has always been a possibility that the United Kingdom would crash out of the European Union on 30 March 2019 but “no deal” preparation is now highly recommended by both sides.  For organisations that export dual use items, the possibility of the UK becoming a “third country” vis-à-vis the EU without an exit agreement or transition period means an overnight need for export licenses where none are required today.

Seasoned international businesses understand that dual use items, which can be used for both civil and military purposes, include far more products than one might assume.  In addition to the more obvious goods that may be used to produce or develop military items, such as machine tools and equipment used for chemical manufacturing, computers, drawings, technology, software, raw materials, and components also may be subject to dual use controls.   Even seemingly mundane items such as protective clothing used in medical laboratories, certain commonly used chemicals, certain ball bearings, and a wide variety of other products are controlled for export and they need to be properly classified to determine if a license would be needed to ship to a UK that has left the EU.  Many entities that have been operating exclusively within the EU could soon be confronted with dual use licensing requirements for the first time and global businesses may be faced with a potentially significant increase in the number of items that need be licensed.
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On 4 June, the European Commission advised economic operators to prepare for the consequences of the United Kingdom leaving the European Union on their imports and exports.   Following the UK’s withdrawal, UK inputs, including materials and certain processing operations, will no longer be considered EU origin for purposes of enjoying preferential treatment.   Whether a particular good qualifies depends on the rules of origin specified in each trade agreement between the EU and its trading partners.  The Commission advises EU exporters to treat any UK inputs as “non-originating” when determining the EU’s treatment of their goods post-Brexit and to take appropriate steps to be able to prove the preferential origin of goods without counting UK inputs as EU content.  Economic operators importing goods into the EU also are advised to take steps to ensure that the exporter can demonstrate compliance with EU preferential origin rules given the exclusion of UK inputs after Brexit.
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Despite the fact that export controls on dual-use goods derive from international agreements such as the Wassenaar Arrangement, significant differences can be seen as controls are implemented by different countries. The same is true in the European Union notwithstanding the fact that the EU’s dual-use regulation (Council Regulation (EC) No. 428/2009) is binding on its 28 Member States.  Accordingly, while Regulation 428/2009 exempts telecom and information security equipment with encryption where there is limited cryptography functionality and/or products are mass-marketed and cannot be readily changed (the “Cryptography Note”), the exact scope of the exemptions is determined by each Member State.
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