The European Union won’t hesitate to push back on U.S. extraterritorial sanctions but wants to work more closely with the Biden administration on sanctions programs to ease compliance burdens for EU companies, a top EU official said. “There is no better way to protect against extraterritorial sanctions than to align sanctions implementation with partners like the United States,” said Mairead McGuinness, an EU commissioner overseeing financial markets.
Although national security lawyers aren’t expecting many changes to the goals of the Committee on Foreign Investment in the U.S. under the Biden administration (see 2101220034), they are expecting more of an effort by CFIUS to keep its transactions and actions out of the spotlight. “We do expect to see a return to a normal course of business for CFIUS, for the deliberations to take place behind closed doors,” said Caroline Brown, a trade lawyer with Crowell & Moring, speaking during a Feb. 17 event hosted by the law firm.
The U.S. needs to swiftly implement industrial policies to counter China’s technology rise and compete against Chinese state-owned companies or risk lagging behind in innovation, experts said. Without targeted policies, the U.S. could quickly cede technology leadership to China in a variety of sectors, the experts said during a Feb. 16 Center for Strategic and International Studies event.
Although the Treasury’s Office of Foreign Assets Control saw a decrease in total sanctions settlements last year, the agency increased its output of sanctions guidance and advisories, shedding more light on OFAC’s compliance expectations, sanctions lawyers said. Lawyers also said the agency flexed its enforcement jurisdiction by pursuing penalties against a variety of industries beyond large commercial banks, a trend that should continue this year.
The U.S. on Feb. 11 announced sanctions and export controls targeting the Myanmar military, defense ministry and security services after it carried out a coup earlier this month (see 2102100060). The White House also issued an executive order outlining a new Myanmar sanctions regime and said more restrictions will be imposed “in the coming days.”
The Treasury Department isn’t doing enough to limit the impacts of U.S. sanctions on humanitarian aid to Venezuela, the Government Accountability Office said in a report. Although Treasury has taken steps to mitigate the sanctions’ impact -- including through general licenses and by responding to individual questions about humanitarian aid -- GAO said the agency doesn’t “systematically track and analyze information from these inquiries” to spot trends or repeating issues. “Without collection and analysis of this information,” the GAO said Feb. 4, “Treasury and its interagency partners may be limited in their ability to develop further actions to ensure that U.S. sanctions do not disrupt humanitarian assistance.”
The U.S. will impose sanctions this week on foreign officials behind the military coup in Myanmar (see 2102020064), President Joe Biden told reporters Feb. 10. The measures will also include a set of “strong export controls” to impose “consequences” on the leaders of the coup, Biden said. “We’ll be ready to impose additional measures,” he said, “and we’ll continue to work with our international partners to urge other nations to join us in these efforts” (see 2102100012).
A bipartisan group of lawmakers is hoping to fund an emergency maritime relief program to help unclog port congestion caused by the COVID-19 pandemic and provide relief for U.S. shippers. The Maritime Transportation System Emergency Relief Program, created last year, could provide more resources to terminals that are seeing severe shortages in skilled labor and equipment, and help alleviate the nationwide backups in trucks and container vessels, House members said.
Industry should expect the Biden administration’s review of Trump-era China policies -- including export controls and licensing decisions -- to take two to three months, trade lawyer Peter Lichtenbaum said. He also said the Bureau of Industry and Security will continue to adhere to the Trump administration's strict Huawei licensing policy until it’s changed by incoming political appointees, which has not yet happened.
For weeks, dozens of container ships have dotted the waters of California's San Pedro Bay, waiting to unload at a port experiencing its highest level of congestion in years. With no space to drop their cargo, the ships sit in limbo, further slowing imports and exports and clogging a global trading system that some shippers view as broken.