Sen. Mitt Romney, R-Utah, says there is the potential for a bipartisan consensus on a strategy to compete with China. Romney, who was speaking at a U.S. Chamber of Commerce program May 19, said the two parties are more united than they were two years ago, as they recognize China's threat to liberal democracies. He said that "China’s rise is the result really of their economic resources, and those are resources that are built in part through predatory practices, particularly subsidized or predatory pricing which allows them to put western businesses out of business...."
New European Union export controls on dual-use goods meant to promote human rights have the effect of shifting legislative authority from a member state's legislative body to its regulatory arm, Sheppard Mullin said in a May 14 analysis. Officially passed on March 26, the human rights export controls allow, among other things, a member state to impose a prohibition on the exports of items not on the Dual-Use Control List for human rights considerations. Subsequently, other member states are also prohibited from making unlicensed exports of these items if they have been notified by the appropriate competent authorities that the items are intended to be used for human rights violations. “In Member States whose legislation does not empower their licensing authorities unilaterally to impose export licensing requirements on new items, the Regulation effectively transfers legislative authority from one organ of Member State government (the legislature) to another (the export licensing authority),” Sheppard Mullin said.
Reps. Ron Kind, D-Wis.; David Schweikert, R-Ariz.; Don Beyer, D-Va.; and Drew Ferguson, R-Ga., introduced a resolution May 11 calling on the U.S. to “reaffirm its commitment” to membership in the World Trade Organization “and work with other WTO members to achieve reforms at the WTO that improve the speed and predictability of dispute settlement, address longstanding concerns with the WTO's Appellate Body, increase transparency at the WTO, [and] ensure that WTO members invoke special and differential treatment reserved for developing countries only in fair and appropriate circumstances... .”
Following the Department of Justice's first resolution of action under a new export control tool, greater efforts should be made to conduct export-related due diligence and act on those recommendations, according to a May 6 analysis from Sidley Austin. Merely conducting audits of exports and sanctions is not good enough anymore, Sidley said. Implementing audit recommendations and putting in place a robust process to receive, investigate and elevate whistleblower complaints should be a priority following the DOJ's settlement with German software company SAP SE.
The State Department fined a U.S. aerospace and technology company $13 million for illegally exporting technical data to several countries, including China, according to a May 3 order. Honeywell International sent drawings of parts for military-related items, including for engines of military jets and bombers, the agency said, all of which were controlled under the International Traffic in Arms Regulations. After discovering the violations, issuing a self-disclosure to the State Department and bolstering its compliance program, the company again illegally exported technical drawings, failing to abide by its improved compliance requirements, the order said.
The Drug Enforcement Administration is listing four fentanyl-related substances -- fentanyl carbamate, ortho-fluoroacryl fentanyl, ortho-fluoroisobutyryl fentanyl and para-fluoro furanyl fentanyl -- under Schedule I of the Controlled Substances Act, it said in a final rule released May 3. The four substances had already been temporarily controlled under a 2018 order that's set to expire May 6 (see 2004090045). The permanent listing takes effect May 4. “The regulatory controls and administrative, civil, and criminal sanctions applicable to schedule I controlled substances on persons who handle (manufacture, distribute, reverse distribute, import, export, engage in research, conduct instructional activities or chemical analysis, or possess), or propose to handle any of these four specified fentanyl-related substances will continue to be applicable permanently as a result of this action.”
The Census Bureau is unsure how much longer it needs to decide whether to eliminate export filing requirements for shipments to Puerto Rico, saying it is still reviewing public comments and speaking with industry officials, Puerto Rican researchers and other U.S. agencies that use the data. Perhaps most important, the agency remains unsure whether it can use alternative data sources to compensate for all the information that would no longer be collected if Census decides to nix the Electronic Export Information requirements, said Omari Wooden, a senior Census official.
The Coalition for a Prosperous America hired Amanda Mayoral as an economist and Robby Smith as a national security adviser, the trade group said in an April 21 news release. "Mayoral will work with the Economics Team on building CPA’s resources of original research and analysis to demonstrate the effectiveness of aggressive policies for trade, industry, and economic growth," said CPA. "Smith will work with the Government Relations Team to continue to expand CPA’s presence in Washington, including on Capitol Hill and in the administration, with a special emphasis on China policy, national security, and human rights." Mayoral previously worked at the World Bank and U.S. Institute of Peace. Smith joins from the United Nations.
The European Union, via the Economic Ministry of Belgium, has revoked Milwaukee-based motorcycle manufacturer Harley-Davison's Binding Origin Information (BOI) credentials, hiking tariffs on the company's entire product portfolio from 56%, the company announced in an April 19 news release. In the release, Harley-Davidson claimed the move would “effectively prohibit the company from functioning competitively in Europe,” and “underscore the very real harm of an escalating trade war to our stakeholders on both sides of the Atlantic.” The EU originally placed tariffs on motorcycles in retaliation for U.S. Section 232 tariffs on European steel and aluminum.
Trade ministers from the G-7 countries told World Trade Organization Director-General Dr. Ngozi Okonjo-Iweala that they will provide political momentum to the WTO reform debate, during an online meeting March 31. “The multilateral trading system can be a force for good. It has increased competition and economic growth, helped raise living standards, and lifted millions out of poverty. It must serve the needs of all its members and provide the basis for free and fair trade. G7 Trade Ministers recognised that global trade should work for democratic and open-market systems and that these should not be undermined by unfair trade,” the joint statement of the trade ministers said. The United Kingdom hosted the call. The ministers agreed that the WTO needs to strengthen transparency, change the approach to special and differential treatment for developing countries, and reform dispute settlement.