The Office of Foreign Assets Control issued "Cyber-related General License 1," which authorizes certain transactions with the Russian Federal Security Service (FSB) ordinarily incident to requesting certain licenses and authorizations from that entity for the importation, distribution or use of certain information technology products in Russia, OFAC said (here). The license also authorizes certain transactions with the FSB ordinarily incident to transactions necessary and ordinarily incident to comply with rules and regulations administered by, and certain actions or investigations involving, the FSB. The OFAC license is contingent on the proper Commerce Department authorizations for the exportation, re-exportation or provision of any goods or technology subject to the Export Administration Regulations, as well as on the payment of any fees to the FSB for any necessary licenses totaling $5,000 or less in any calendar year, the general license says. The general license does not apply to exportation, re-exportation or provision of any goods, technology, or services in "the Crimea region of Ukraine," OFAC said. "We're not easing sanctions," White House Press Secretary Sean Spicer said in response to a reporter's question during a Feb. 2 press briefing. "It's a fairly common practice for the Treasury Department, after sanctions are put in place, to go back and to look at whether or not there needs to be specific carve-outs for different industries or products and services that need to be going back and forth." Spicer referred further questions to Treasury.

The Trump administration will examine possible improvements to all existing U.S. trade deals, including those with Trans-Pacific Partnership nations, White House Press Secretary Sean Spicer said Jan. 31 during a press briefing (here). “You would examine those to see if we can improve upon them and then look at the other countries in there and see if there's a willingness to engage with some of those other countries,” he said. Of the 11 current TPP nations, Australia, Chile, Canada, Mexico, Peru and Singapore currently have free trade agreements with the U.S. Spicer said Senate confirmation of President Donald Trump’s nominee for U.S. Trade Representative, Robert Lighthizer, would be an important first step before the administration starts its evaluation of current trade deals. The Finance Committee has not scheduled a confirmation hearing for Lighthizer yet, and is reviewing whether he might need a waiver absolving him of any non-compliance of past trade representation he performed on behalf of the Brazilian government with a statute that prevents the USTR from having represented foreign governments in trade matters, a committee majority spokeswoman said last week (see 1701250061).

President Donald Trump will nominate Elaine Duke for deputy secretary of the Department of Homeland Security, DHS said in a news release (here). Duke was DHS undersecretary for management until 2010 and most recently worked as a consultant. Trump also appointed Thomas Homan, executive associate director of ICE Enforcement and Removal Operations, acting director of ICE, DHS (here).

President Donald Trump named Commissioner Michael Khouri as acting chairman of the Federal Maritime Commission, an FMC spokesman confirmed in an email. Khouri's current term as commissioner expires on June 30, 2021. Previous Chairman Mario Cordero will remain on the commission. Law requires the commission to comprise a 3-2 split of Republicans and Democrats, with either party holding the majority of commissioners. Trump is expected to name a Republican to the FMC when Democratic Commissioner Daniel Maffei's term expires June 30, which would put the commission in GOP control.

President Donald Trump issued an executive order (here) directing the Commerce secretary to develop a plan by July 23 to direct all new and renovated U.S. pipelines to use as much U.S.-made materials and equipment as possible and legal. Trump instructed that the secretary’s plan require all iron and steel used in the pipelines to have undergone U.S. production “from the initial melting stage through the application of coatings.” The order excludes the use of any steel or iron partially produced in other countries. Trump’s nominee for Commerce secretary, Wilbur Ross, awaits a Senate confirmation vote after the Senate Commerce Committee on Jan. 24 cleared him for full chamber consideration (see 1701240022). Meanwhile, TransCanada reapplied with the State Department for a presidential permit for construction and operation of the Keystone XL Pipeline, after Trump invited it to (here).

The U.S. and United Kingdom will soon start “laying the groundwork” for a post-Brexit bilateral trade deal, UK Prime Minister Theresa May said Jan. 27 during a joint press conference with President Donald Trump (here). As part of this precursory work, May and Trump discussed immediately initiating high-level talks and identifying the practical steps the two nations can take now to ease trade between the two countries, she said. “I’m convinced that a trade deal between the U.S. and the UK is in the national interest of both countries, and will cement the crucial relationship that exists between us, particularly as the UK leaves the European Union and reaches out to the world,” May said.

The Trump administration's move to withdraw the U.S. from the Trans-Pacific Partnership (see 1701230041), while not surprising, marks a missed chance for significant improvements to international commerce in the region, observers said. Trump said in the executive order (here) "it is the intention of my Administration to deal directly with individual countries on a one-on-one (or bilateral) basis in negotiating future trade deals." Trump directed the U.S. Trade Representative "to provide written notification to the Parties and to the Depository of the TPP, as appropriate, that the United States withdraws as a signatory of the TPP and withdraws from the TPP negotiating process."

Canada need not be worried about collateral damage as the U.S. targets its trade relationship with Mexico in NAFTA renegotiations, said Stephen Schwarzman, a top adviser to President Donald Trump, after meeting with Canadian Prime Minister Justin Trudeau and his Cabinet on Jan. 23. Canada has “special status,” and Trudeau need not be “enormously worried because Canada is held in very high regard,” Schwarzman said, according to a report from Bloomberg (here). “We have balanced trade between the U.S. and Canada, and that’s not the kind of situation where you should be worrying about the kind of issues you are,” Schwarzman said, according to the report. The U.S. had a trade deficit of $49.2 billion with Mexico in 2016, compared with a surplus of $11.2 billion with Canada, according to the Office of the U.S. Trade Representative (here and here). Schwarzman chairs Trump’s new Strategic and Policy Forum, an economic advisory board made up of business executives. Trump intends to meet with Trudeau and Mexican President Enrique Pena Nieto to discuss NAFTA in the next 30 days (see 1701230053).

White House Chief of Staff Reince Priebus on Jan. 20 directed the heads of all executive branch departments and agencies to temporarily postpone until March 21 the effective dates of regulations published in the Federal Register that haven’t taken effect. The Trump administration will review “questions of fact, law, and policy” the regulations raise, Priebus said in the memo (here). The directive also instructs agencies to consider proposing for notice and comment rules to delay the effective date even longer “where appropriate and as permitted by applicable law,” with no further action needed for unsubstantial rulemakings and notification of the Office of Management and Budget for regulations that present substantial law or policy questions.

During his inaugural address, President Donald Trump pledged to take an “America First” attitude toward trade and touted a philosophy of hiring Americans and promoting consumption of domestically produced goods. “From this day forward, it’s going to be only America first. America first. Every decision on trade, on taxes, on immigration, on foreign affairs, will be made to benefit American workers and American families. We must protect our borders from the ravages of other countries making our products, stealing our companies, and destroying our jobs,” Trump said on Jan. 20. “We will follow two simple rules -- buy American and hire American.” Trump has indicated some major changes to trade policy will come during his first 100 days in office, including an immediate withdrawal from the Trans-Pacific Partnership (see 1611220016 and 1701190039).