The Department of Commerce published its fall 2019 regulatory agenda for the Bureau of Industry and Security. The agenda includes a new mention of its intent to potentially control certain additive manufacturing equipment, or 3D printing, used in “energetic materials” as part of BIS’s effort to restrict sales of emerging technologies (see 1911210051). The notice of proposed rulemaking aims to gather feedback from industries while “discussions are ongoing” at the Wassenaar Arrangement. BIS said it aims to issue the proposed rule in November.
The U.S. and the European Union would recognize each other’s product testing across a variety of sectors including electronics, toys, machinery and measuring instruments, under a proposed agreement released by the EU on Nov. 22. “The EU proposal seeks an agreement, under which the EU and the U.S. would accept the conformity assessment results of each other’s assessment bodies, certifying products against the legal requirement of the other side. This would enable exporters to seek certification of their products in their originating country,” the European Commission said in a press release.
Geneva is growing increasingly frustrated with the United States’ approach to the looming deadline of the dissolution of the World Trade Organization’s dispute settlement body, a former member of the body said. Although there are ways for the U.S. and WTO members to ensure the appellate body continues to operate, trade experts said they are skeptical much will get done before the Dec. 10 deadline, throwing the international rules-based trading system into question.
The Commerce Department will likely seek multilateral support for upcoming export controls on additive manufacturing of metals, said Sean Ghannadian, a Bureau of Industry and Security official and part of Commerce’s Wassenaar Arrangement group. Commerce is also moving toward controlling certain ceramic coating technologies as part of the agency’s effort to identify and restrict sales of emerging technologies (see 1911200045), Ghannadian said.
A bipartisan group of senators asked the Commerce Department to reverse its decision to approve Huawei-related export licenses (see 1911200041), saying the move poses significant national security risks. The senators, led by Sens. Chuck Schumer, D-N.Y., and Tom Cotton, R-Ark., said in a Nov. 21 letter to President Donald Trump that they are “concerned that the approval of additional, more permanent licenses will allow Huawei to fully resume its engagement with certain U.S. firms without an adequate assessment of the risks to national security.”
More than three weeks after a top Commerce official said the agency’s first set of proposed controls on emerging technologies would be released within the ”next few weeks,” (see 1910290062) the proposal is still under review. Commerce now hopes to release the proposed controls “in the next couple weeks,” Matt Borman, Commerce deputy undersecretary for export administration, said during a Nov. 20 Materials and Equipment Technical Advisory Committee meeting.
The Commerce Department Bureau of Industry and Security finalized some interagency reviews of Huawei license applications and will begin issuing approvals and denials on a “rolling basis,” according to Matt Borman, Commerce deputy assistant secretary for export administration. The announcement was first made by Secretary Wilbur Ross, who told Fox Business on Nov. 19 that Commerce has started “to send out the 20-day intent-to-deny letters and some approvals.” Ross also said Commerce has received about 290 “requests for specific licenses.”
If President Donald Trump signs the bill that passed the Senate unanimously Nov. 19 and passed the House 417-1 on Nov. 20, the secretary of state will have to certify within 180 days whether Hong Kong continues to warrant special treatment under U.S. law because of its special status under Chinese rule. It also requires a report by that date on whether items exported to Hong Kong that are on export controls lists are being transshipped.
The trade war that President Donald Trump began with China 16 months ago is creating pain for businesses, but there's a deeper strategic mistake to consider, said Matthew Goodman, senior vice president for Asian economics at the Center for Strategic and International Studies. Goodman, who was speaking during the first session in a Congressional Trade Series on Nov. 19, said, “I still don't know what the basic strategic goal is here." He said he didn't know whether the administration wants to get structural changes to China's economy, as it claims, or whether it wants to reduce the bilateral trade deficit, or to contain China's rise.
The Commerce Department has been “slow” to complete a series of export control reviews mandated by the Export Control Reform Act, including the agency’s upcoming controls on emerging and foundational technologies, Sens. Chuck Schumer, D-N.Y., and Tom Cotton, R-Ark., said.