The United States (US) focused this week on countering the
fast-spreading Delta COVID-19 variant, with the Federal Government
calling for a reinstatement of mask-wearing, irrespective of
one’s vaccination status. While the second quarter report
for the US economy showed some positive momentum, inflation
continues to rise, with some attributing this to global supply
chain issues. Meanwhile, the US Senate started moving forward
with consideration of a bipartisan infrastructure package, after
weeks of negotiations resulted in a breakthrough on Wednesday.
The United Kingdom (UK) moved forward with resuming
international travel with those vaccinated against COVID-19 from
the US and European Union (EU). It also began shipping
COVID-19 vaccines overseas.
This week, the EU publicly released two non-papers it had
previously shared with the UK Government in an effort to find a
path forward on resolving the Northern Ireland Protocol
dispute. The UK Government also shared a command paper on the
matter.
In this issue, we also cover:
- COVID-19 highlights among the transatlantic
partners; - Notable UK, and US
developments; and - UK-EU trade deal
COVID-19 Highlights | US, UK
Despite previously saying boosters are not needed, Dr. Anthony
Fauci, White House Chief Medical Advisor, stated on Sunday that Americans who are
immune-compromised (e.g., transplant patients, cancer chemotherapy,
and autoimmune diseases that are on immunosuppressant regimens) may
end up needing COVID-19 vaccine booster shots, amid the Delta
variant surge. Meanwhile, Pfizer/BioNTech reported last Friday that the United States
had purchased 200 million more doses of their vaccine to help with
pediatric vaccination, as well as possible booster shots.
On Tuesday, 27 July, the US Centers for Disease Control and
Prevention (CDC) recommended vaccinated Americans should resume
wearing masks indoors in areas of high COVID-19 transmission.
The CDC also recommended indoor masking for all teachers, staff,
students and visitors inside schools from kindergarten to 12th
grade, regardless of vaccination status. US President Joe
Biden announced on Thursday, 29 July, additional
steps to get more Americans vaccinated. US federal government
employees and onsite contractors will be asked to attest to their
vaccination status. Those not fully vaccinated will be
required to wear a mask on the job no matter their geographic
location, physically distance from all other employees and
visitors, comply with a weekly or twice weekly screening testing
requirement, and be subject to restrictions on official
travel. Among other things, he also directed the US
Department of Defense to look into how and when they will add
COVID-19 vaccination to the list of required vaccinations for
members of the military domestically and overseas.
Amid increased pressure from the US travel industry and allies,
the White House indicated on Monday that the United States
will maintain existing travel restrictions for overseas travelers
due to the global Delta variant surge. Reuters reported last week that the White House was
discussing the potential of mandating COVID-19 vaccines for
international visitors, but no decision has been made.
In the United Kingdom, the Government decided on Wednesday, 28
July, to make it easier for people fully vaccinated in Europe or
the United States to travel to England, effective 2 August.
Further details are accessible here on the decision intended to reopen
international travel.
Also on Wednesday, British Foreign Secretary Dominic Raab announced the UK began delivering nine million
COVID-19 vaccines around the world this week, including to the
Philippines. Five million were delivered to COVAX for
dissemination to lower-income countries, with an additional four
million shared directly with countries in need.
Notable UK Development
This week, Foreign Secretary Raab and Home Secretary Priti Patel
signed a new maritime security treaty between
the UK and France. The treaty will allow the two countries to
share security information concerning potential security threats,
mount swifter and stronger initial responses to serious security
incidents, coordinate joint responses, and cooperate in the
aftermath of an attack or incident.
Notable US Developments
On Thursday, 29 July, the US Department of Commerce Department
released a report that estimated the national’s gross
domestic product rate was 6.4 percent for the second quarter of
2021. While this was lower than the eight percent rate that
many economists had predicted, the miss was attributed to global
supply chain challenges. A 3.4 percent increase was also
noted for core inflation, which excludes food and energy. The
day before, the US Federal Reserve affirmed it would maintain its
key short-term interest rate at near zero to keep short-term
borrowing costs low. Federal Reserve Chairman Jerome Powell
said at a press briefing Wednesday afternoon that inflation
readings have been distorted by temporary supply shortages related
to the economy’s swift reopening. Meanwhile, it remains
to be seen whether the spreading Delta variant will make American
consumers restrict their movements and possibly spend less in the
third quarter.
On Wednesday, 28 July, the bipartisan group of US Senators
negotiating the $1.2 trillion infrastructure framework announced a
deal had been reached. In a procedural vote later that
evening, the Senate agreed to move forward with floor debate on the
infrastructure deal, despite bill text still pending.
Meanwhile, several steps remain before the bill can advance out of
the Senate, including floor debate on amendments and the 60-vote
hurdle to close debate.
On Monday, 22 July, a bipartisan House Armed Services Committee
task force released their final report, findings, and recommendations,
following a months-long review of supply chain threats and
vulnerabilities for the Department of Defense (DOD). Among
other recommendations, the Task Force suggested a statutory
requirement to identify supplies and materials for major end items
that come from adversarial nations and implement a plan to reduce
reliance on those nations. They also recommended authorities
be updated to emphasize the value of a broad collaboration with the
National Technology and Industrial Base (NTIB) allies beyond
acquisition, to strengthen the alliance; direct the NTIB Council to
identify particular policies and regulations that could be expanded
to the NTIB allies, in order to use the NTIB as a test bed for
closer international cooperation and supply chain resiliency; and
authorize an NTIB “International Council” to harmonize
industrial base and supply chain security policies. The Task Force
also encouraged the Pentagon to prioritize supply chain security
policy in bilateral and multilateral discussions.
UK-EU Trade Deal Updates
On 26 July, the European Commission publicly released two
non-papers that detail different proposals already made to the UK
with regard to easing trade between Northern Ireland and the rest
of the United Kingdom. Non-papers are informal documents,
without explicit attribution, put forward in closed negotiations in
order to seek consensus on some contentious or procedural issue.
The first non-paper include proposals in the field
of medicine. It states that regulatory compliance functions
(e.g. quality control tests) may be exceptionally located in Great
Britain in respect of medicines covered by UK national authorities
that will be distributed in Northern Ireland, following certain
conditions. In addition, the Commission asks for an enhanced
enforcement by UK competent authorities to ensure that relevant
medicine is only distributed to Northern Ireland and not further in
the EU Internal Market.
The second non-paper includes measures to ease the
movement of assistance dogs for disabled people and movement of
livestock from Great Britain to Northern Ireland. It also
clarifies the rules on food safety checks. It also notes the
rules apply to EU-origin animal products that are exported to Great
Britain for storage before being moved to Northern Ireland.
It states that a draft measure amends EU rules to allow
re-entry into the EU of products of EU origin that are packaged and
stored under the control of the competent authority of a third
country.
The UK received both non-papers months ago. Following the
public release of the papers, the UK Government spokesperson stated
these papers did not address the issues and concerns raised by the
UK. In addition, the spokesperson call for the need of
“comprehensive and durable solutions to avoid further
disruption to every day lives in Northern Ireland”. The
United Kingdom has recently set their own solutions and concerns in
the command paper titled, “Northern Ireland Protocol: the way
forward”.
As previously reported, the Protocol on Northern Ireland, which
was agreed as part of the Brexit deal, seeks to avoid enforcement
of the EU single market rules in the border between Northern
Ireland and the Republic of Ireland, leaving the first one inside
the EU’s custom union and single market for goods.
Nevertheless, the Protocol imposes checks on goods moving
between Northern Ireland and the rest of the United Kingdom, in
order to protect the EU market from goods that may not be compliant
with EU rules.
On 28 July, a Commission spokesperson stated the EU has agreed
to a standstill in legal action against the UK for breaches of
Northern Ireland Protocol. The spokesperson added the
European Commission would remain open to suggestions made in the
British command paper. Nevertheless, the Commission will
assess the new proposal “in accordance with the necessary
consultation procedures, both internally, and with the European
Parliament”.
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Originally Appeared On: https://www.mondaq.com/unitedstates/operational-impacts-and-strategy/1098460/transatlantic-trade-us-and-europe-week-of-july-26-2021