The Energy Department is amending energy efficiency test procedures for residential and commercial water heaters, in a July 11 final rule. Compliance with the changes will be required one year after the publication in the Federal Register of a mathematical conversion factor needed to use the new test procedures, or on Dec. 31, 2015, whichever is later.

International trade industry groups announced on July 9 the formation of a coalition to support World Trade Organization (WTO) Environmental Goods Agreement (EGA) negotiations, said the organizations in an emailed statement. The Coalition for Green Trade will be co-chaired by National Association of Manufacturers, National Foreign Trade Council and the United States Council for International Business, and will sit a number of other high-profile organizations, including the Chamber of Commerce, on its steering committee. The U.S., along with 12 other nations and the European Union (EU), launched negotiations on the agreement at the WTO in Geneva, Switzerland on July 8 (see 14070811). The agreement seeks to build on an Asia-Pacific Economic Cooperation pact that aims to reduce to 5 percent or less tariffs on 54 environmental products (here). "Global trade in environmental goods is already estimated to be around $1 trillion annually, and growing quickly," said the coalition along with other industry leaders in a July 8 letter to WTO negotiators. "An ambitious EGA will further increase global trade in environmental goods, lowering the cost of addressing environmental and climate challenges by removing tariffs that can be as high as 35 percent." WTO Director-General Roberto Azevêdo also praised the launch of the agreement in a July 8 statement (here).

The U.S. and Vietnam should both dismantle protectionist barriers that inhibit bilateral trade and investment in order to maximize potential in the Trans-Pacific Partnership (TPP) and other commercial arenas, said the Center for Strategic and International Studies (CSIS) in a recent report. The organization urged Vietnam to avoid introducing new non-tariff barriers, such as a proposed excise tax on carbonated drinks. The proposed 10 percent tax on carbonated drinks would be discriminatory because U.S. firms produce and market carbonated drinks in Vietnam, while Vietnamese companies sell tax-exempt non-carbonated drinks, said CSIS. Recent Vietnamese reforms to customs regulations have also increased import data field requirements nearly four-fold and imposed burdensome increases in "time periods for duties, taxes and penalties," said the organization.

The Obama administration should push “knit to shape” rules of origin for socks and hosiery in Trans-Pacific Partnership (TPP) negotiations in order to permit U.S. companies to increase legwear production in the TPP region, said American Apparel and Footwear Association President Juanita Duggan in a July 2 letter to U.S. Trade Representative (USTR) Michael Froman. The “knit to shape” rules would permit U.S. companies operating in the TPP region to continue to source certain yarns and fabrics globally. Stringent rules, such as “yarn forward,” may require U.S. companies to move production outside of the TPP region, said Duggan. The administration must specifically insist that gimped yarn is subject to “knit to shape” rules, as the U.S. has done in free trade agreements over the past 20 years, she added. “Requiring gimped yarn to originate, as is the current U.S. negotiating position, would end up disqualifying many U.S. legwear products, undercutting several key U.S. export platforms,” said Duggan. The Office of the USTR confirmed rules of origin are being negotiated during the current round of TPP negotiations underway in Ottawa, Canada, but did not elaborate on progress made (see 14062628).

The U.S. goods and services deficit decreased to $44.4 billion in May from $47.0 billion in April, the Census Bureau said. The goods deficit decreased $2.4 billion in May. Goods exports increased $1.6 billion to $136.7 billion, and goods imports decreased $0.7 billion to $200.0 billion, said Census. The U.S. registered export increases in automotive vehicles, parts, and engines ($0.8 billion); other goods ($0.5 billion); consumer goods ($0.4 billion); industrial supplies and materials ($0.2 billion); and foods, feeds, and beverages ($0.1 billion). The April to May decrease in imports of goods reflected decreases in industrial supplies and materials ($1.7 billion); other goods ($0.7 billion); consumer goods ($0.5 billion); and foods, feeds, and beverages ($0.2 billion). Increases occurred in automotive vehicles, parts, and engines ($1.3 billion) and capital goods ($1.0 billion).

The Obama administration should impose trade sanctions against Mozambique for its failure to rein in pervasive poaching in the region allegedly committed by Mozambican nationals, said the Environmental Investigation Agency and the International Rhino Foundation (IRF) in a joint July 2 statement. The Mozambican government and nationals have routinely violated the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) for years by participating in illegal rhino horn and elephant ivory trade, said the two organizations. "Many of the crime syndicates have moved their base of operation from South Africa to Mozambique, where they are able to act with impunity," said Susie Ellis, executive director of IRF, in the statement. "Mozambican poachers are highly organized and are slaughtering rhinos and elephants on a daily basis, while the Mozambican government turns a blind eye." President Barack Obama is able to impose sanctions on any nation that undermines an international conservation pact through the Perry Amendment to the U.S. Fishermen’s Protective Act, said the organizations.

Despite the low existing duties between the U.S. and European Union (EU), both partners stand to benefit substantially through duty elimination and reduction in the Transatlantic Trade and Investment Partnership (TTIP), said the Congressional Research Service (CRS) in a recent report on the potential agreement. Negotiations remain underway, and the U.S. is pushing comprehensive duty elimination (see 14031101). The successful elimination of tariffs could bring about at least $4.5 billion in annual U.S. gains, as well as $3 billion in EU benefits, said CRS.

The Energy Department is setting new energy efficiency standards for residential furnace fans manufactured or imported into the U.S. beginning on July 3, 2019. The final rule sets maximum energy use restrictions based on whether a fan is for gas or oil furnaces, is weatherized, is condensing or non-condensing, as well as whether or not the fan is for mobile home use.

The Energy Department is seeking comments by July 18 on ways that it can improve its regulations to reduce unnecessary burdens on industry. DOE says the comments will inform a regulatory review it is conducting. The agency is asking whether any of its regulations or reporting requirements are unnecessary or have become outdated, as well as whether implementation of any of its regulations can be improved.

The Drug Enforcement Administration placed the analgesic opioid drug tramadol into Schedule IV of the Controlled Substances Act. The substance was approved by the Food and Drug Administration for use in the U.S. in 1995 under the trade name ULTRAM. Effective Aug. 18, tramadol will be subject to new registration, labeling, recordkeeping, and import and export requirements.