A new round of tariff cuts under the World Trade Organization’s expanded Information Technology Agreement take effect July 1, again lowering duties on information technology goods in some 50 countries around the world. For some countries, including the U.S., this third round marks the last set of tariff cuts under the expanded agreement, with all tariffs for covered goods now being set to zero. Other countries, particularly in the developing world, were given longer implementation periods, and tariff cuts stretch out until 2024.
Exports to China
In the June 28 edition of the Official Journal of the European Union the following trade-related notices were posted:
President Donald Trump said he won't lift current U.S. tariffs, but also won't add tariffs on any more Chinese imports "for at least the time being." He said during a press conference at the G20 Summit in Japan that negotiations will resume "where we left off to see if we can make a deal."
A bipartisan effort to reduce fentanyl trafficking passed the Senate June 27 on the must-pass defense authorization bill. The amendment would dedicate some money for investigations into which Chinese companies are supplying fentanyl to the U.S. black market. It also requires sanctions on drug manufacturers in China that knowingly provide synthetic opioids to dealers, and would sanction financial institutions that assist those manufacturers or international drug cartels. However, Senate Minority Leader Chuck Schumer's staff could not say by press time how much money would be appropriated.
Rep. Mark Green, R-Tenn., plans to introduce a bill that would increase export controls on additional goods deemed by China to be “core technologies,” and impose sanctions on foreign entities or people who violate those controls, according to a "dear colleague" letter Green sent June 26 to solicit co-sponsors. The bill, which he calls the China Technology Transfer Control Act, would “stop the Chinese military’s acquisition of sensitive American technology,” the letter said. “We should not continue to let China steal American property, only for them to turn around and use it to undermine our national security.”
Even as mercantilistic policies spread, José Raúl Perales said there's good news in global trade -- developing countries' commitment to trade facilitation. Perales was speaking on a panel at the American Association of Exporters and Importers Annual Conference in Washington June 27.
There is significant tension and disagreement between the Defense and Commerce departments about the reach of U.S. export controls, said Jamie McCormick, a staffer for House Appropriations Committee Republicans, June 27 at the American Association of Exporters and Importers Annual Conference in Washington. McCormick said the confusion surrounding foundational technologies among U.S. industry leaders may stem from the original passage of the Export Control Reform Act of 2018, adding that he believes the executive branch does not agree on a definition for foundational technologies. “I’m not certain that at the time they passed the bill that the executive branch could say with any certainty what they meant by foundational technologies,” McCormick said.
An escalating U.S. trade war with Europe would further accelerate the European Union’s efforts to sign free trade deals with other countries, potentially closing off more market access for U.S. exporters, panelists told a House Foreign Affairs Subcommittee June 26.
An internal “review” at Micron Technology found the memory chip supplier could “lawfully resume shipping a subset of current products” to Huawei because they aren't subject to Commerce Department export administration regulations and entity list restrictions, CEO Sanjay Mehrotra said on a fiscal Q3 call. Micron reinstated those shipments about two weeks ago, he said on June 25. Micron suspended all Huawei shipments immediately after release of the May 16 notice from Commerce’s Bureau of Industry and Security placing the Chinese telecom gear giant and 68 of its non-U.S. affiliates on the Entity List (see 1905240044), Mehrotra said. Micron did so to “ensure compliance” with the restrictions and begin its review, he said.
Commerce’s Bureau of Industry and Security corrected one entry and removed eight others from the Unverified List after verifying and conducting an end-use check, BIS said in a notice. The correction changes the name of Beijing Institute of Nanoenergy and Technology to Beijing Institute of Nanoenergy and Nanosystems, BIS said. The eight removals from the list, all China-based, are: Beijing Bayi Space LCD Materials Technology Co., Hubei Flying Optical, Sunder Tools (Changxing) Technology, Wuhan Yifi Laser Equipment Co., Wuxi Hengling Technology Co., Xiamen Sanan Optoelectronics, Zhejiang Xizi Aviation and Zolix Instruments Co. The changes are scheduled to take effect June 27.