1. Existing restrictions on trade in goods

1. Existing restrictions on trade in goods

The following paragraphs analyse trade policy impediments to deepening trade between the two regions. As discussed above, these restrictive measures may not be the main reason for weak trade relations. Whereas peculiarities in foreign partners’ trade policies may affect trade, they may not explain per se all the variables endogenously impeding business relations. Existing trade restrictions affect a narrow list of the goods selected above as prospective trade drivers, such as wheat or wines, as well as numerous products on the short lists, as may be concluded from the measures listed below. As far as non-tariff barriers are concerned, some quantitative trade restrictions remain in place. For example, EAEU countries apply quotas to certain agricultural products, including fresh, frozen and chilled meat and certain types of dairy products17; deliveries exceeding the quota are not allowed. As a LAC example, the Dominican Republic applies very high out-ofquotas tariffs. Deliveries of rice, garlic, sugar, chicken, onions, shallots and beans outside the quota are subject to import duties of 85%-99%, while products supplied within the quota are taxed at 20% to 25%. If the quantitative limit on dried milk and corn is exceeded, the duty rate increases from 20% to 65%.18 Another example is Brazil, which establishes a 0% import tariff for wheat imports within a yearly quota of 750,000 tons.19 Some LAC States also apply certain contingent trade protection measures on products produced in EAEU member States, especially the Russian Federation and Kazakhstan. Brazil has imposed anti-dumping duties on Russian Federation magnesium metal (US$ 890.7 per ton);20 tires for buses and freight vehicles (US$ 2,934-4,059 per ton)21 and N-butyl alcohol (80.7%).22 Mexico applies anti-dumping duties on Russian Federation rolled carbon steel sheets (36.8%),23 hot rolled steel plate in coils (29.3%);24 and cold-rolled sheet originating from the Russian Federation and Kazakhstan (15% and 22%, respectively).25 EAEU countries do not currently apply any anti-dumping duties in relation to products originating from LAC States. Safeguards and countervailing measures are not applied between the regions. In addition, there are very specific forms of import bans and non-automatic import licensing, the detection of which requires careful examination of the countries’ trade policy legislation. For example, Brazil prohibits the import of wine in containers of more than 5 litres26 and a wide range of repaired goods (including earthmoving equipment, automobile parts and medical equipment) and all types of used goods.27 Another case in point, exporters willing to supply chemical products or textiles, items of clothing and shoes to Argentina must obtain a

17 See [online] https://www.alta.ru/tamdoc/19kr0127/#pril. 18 See [online] http://cnmsf.gob.do/Portals/0/docs/Texto%20Legales/Resoluciones/Sanidad%20Vegetal/Resolucion%20No.% 2032-2016.%20Estable%20Algunas%20Directrices%20Sobre%20el%20Registro%20y%20el%20Control%20de%20Plaguicidas.pdf. 19 See [online] https://www.in.gov.br/en/web/dou/-/resolucao-no-10-de-12-de-novembro-de-2019-227652776. 20 See [online] http://www.camex.gov.br/component/content/article/62-resolucoes-da-camex/em-vigor/1998-resolucaono-18-de-27-de-marco-de-2018. 21 See [online] http://www.camex.gov.br/component/content/article/62-resolucoes-da-camex/em-vigor/1427-resolucaon-107-de-21-de-novembro-de-2014. 22 See [online] http://www.camex.gov.br/component/content/article/62-resolucoes-da-camex/em-vigor/1871-resolucaon-48-de-5-de-julho-de-2017. 23 See [online] http://www.dof.gob.mx/nota_detalle.php?codigo=5451779&fecha=07/09/2016. 24 See [online] http://www.dof.gob.mx/nota_detalle.php?codigo=5481166&fecha=02/05/2017. 25 See [online] http://www.dof.gob.mx/nota_detalle.php?codigo=5398992&fecha=01/07/2015. 26 See [online] http://www.in.gov.br/en/web/dou/-/instrucao-normativa-n-12-de-28-de-junho-de-2019-187160162. 27 See [online] https://ustr.gov/sites/default/files/files/Press/Reports/2018%20National%20Trade%20Estimate%20Report.pdf (p. 58).