The European Union is proposing to amend its rules on tariff retaliation so it can still impose tariffs and other restrictions after the World Trade Organization’s dispute settlement appellate body ceased to function on Dec. 11, the EU Commission said in a press release.
About a year into the Trump administration's maximum pressure sanctions campaign on Iran, the effort has done nothing to bring Iran to the negotiating table, panelists said during a Dec. 12 Atlantic Council event. U.S. sanctions have instead emboldened a more aggressive Iran, panelists said, which is growing increasingly frustrated with its unwilling European trade partners and will likely continue breaching the terms of the Joint Comprehensive Plan of Action.
U.S. companies are encountering issues when trying to return faulty products to parties on the Entity List, members said during a Dec. 10 Regulations and Procedures Technical Advisory Committee meeting. The problem occurs after companies legally import goods -- which later turn out to be defective -- from an Entity List party, the members said. The goods are not able to be easily exported for return, they said.
Export Compliance Daily is providing readers with some of the top stories for Dec. 2-6 in case you missed them.
The Commerce Department Bureau of Industry and Security's upcoming set of proposed rules on emerging technologies may not be published until early next year, another sign of the delay that has plagued the rules since Commerce first announced them more than a year ago. Commerce has three emerging technology rule proposals in “various stages of clearance,” Hillary Hess, director of the BIS Regulatory Policy Division, said during a Dec. 10 Regulations and Procedures Technical Advisory Committee meeting. The agency hopes to publish one proposal before the end of the year, Hess said, but urged committee members to take any prediction with “at least a handful of salt.”
The Commerce Department is considering a host of expanded restrictions on foreign shipments to Huawei containing U.S. technology, said Rich Ashooh, Commerce’s assistant secretary for export administration. The agency is discussing expanding the Direct Product Rule -- which subjects certain foreign-made products containing U.S. technology to U.S. regulations -- and a broadened de minimis rule, Ashooh said during a Dec. 10 Regulations and Procedures Technical Advisory Committee meeting. Ashooh’s comments confirmed details in a Nov. 29 Reuters report that said the U.S. was discussing ways to restrict more foreign exports to Huawei (see 1912040014).
Unions appear ready to endorse the changes Democrats won to the NAFTA rewrite, though the most radical change -- stopping goods at the border for labor violations -- isn't in the deal. On Dec. 9, AFL-CIO President Richard Trumka said to The Washington Post, “We have pushed them hard and have done quite well,” in getting changes to the U.S.-Mexico-Canada Agreement. The House Democrats pushed for changes to the USMCA on labor, the environment, the biologics data exclusivity period and overall enforcement. If the AFL-CIO endorses their changes -- as seems likely after Trumka's comment -- passage in the House could follow quickly.
China hopes to reach a trade agreement with the U.S. “as soon as possible,” China said during a Dec. 9 press conference, adding that it plans to reduce import tariffs on industrial goods as part of a series of “guiding opinions” released by the State Council.
Telefonaktiebtolaget LM Ericsson, a multinational telecommunications company based in Sweden, was fined more than $1 billion for violations of the Foreign Corrupt Practices Act, the Justice Department said in a Dec. 6 press release. The penalty, stemming from a scheme to bribe government officials and falsify records, includes more than $520 million in criminal penalties and a $540 million penalty owed to the Securities and Exchange Commission.
The growing complexity of international trade and the increasing use of front companies have made it more difficult to identify end-users and more challenging for enforcement authorities to prosecute illegal exports, according to a December report by The Stockholm International Peace Research Institute. In response, the European Union, and other multistate export regimes, should push for more transparency in penalties for export violations, create a forum for information sharing on national enforcement measures and improve reporting on those measures, the report said. The EU should also adopt “clearer” language on complex export concepts and make “detection, investigation and prosecution” a “key focus” of its industry outreach efforts.