2017

On August 14, 2017, the Trump Administration moved toward self-initiating a case against China under section 301 of the Trade Act of 1974. That legal provision is broad, and  authorizes the President to “take all appropriate action, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S. commerce.” Past administrations have been hesitant to use the broad powers of the act to impose additional tariffs and quotas due largely to the possibility of retaliation and the uncertain effect on US companies. The Trump Administration announced that it was using the broad statute to zero in on issues involving U.S. intellectual property rights, theft of such trade secrets, and pressures by China forcing U.S. companies to transfer technological knowledge before setting up operations in China.

On August 9, 2017, North Pacific Paper Company filed a petition for the imposition of antidumping duties and countervailing duties on imports of Certain Uncoated Groundwood Paper from Canada.

SCOPE OF THE INVESTIGATION

The merchandise covered by this petition includes certain paper that has not been coated on either side and with 50 percent or more of the cellulose fiber content consisting of groundwood pulp, or deinked pulp made from recycled ONP (old newspapers), weighing not more than 90 grams per square meter. Groundwood pulp includes all forms of pulp produced from a mechanical process, such as thermomechanical process (“TMP”), chemithermo mechanical process (“CTMP”), or bleached chemithermo mechanical process (“BCTMP”) or any other process other than the bleached Kraft process. The scope includes paper shipped in any form, including both rolls and sheets.

Today, President Trump officially signed H.R. 3364, the “Countering America’s Adversaries Through Sanctions Act” (CAATSA) into law. CAATSA originated as a bill which was focused on only Iran. However, partially in response to Russian cyber-interference with the 2016 election, the Senate expanded CAATSA to impose additional sanctions against Russia and also codify into law various sanctions imposed by the Obama Administration in the form of Executive Orders. The House of Representatives then approved these additions and added further sanctions against North Korea. Eventually, the House and Senate approved the final version of CAATSA by a margin of 419-3 and 98-2, respectively. For additional detail on CAATSA’s legislative history, please see our previous alerts here, here and here.

Reports from numerous sources, including the New York Times and Politico, indicate that the Trump Administration is on the verge of self-initiating a case against China under section 301 of the Trade Act of 1974. That legal provision is broad, and authorizes the President to “take all appropriate action, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S. commerce.” Past administrations have been hesitant to use the broad powers of the act to impose additional tariffs and quotas due largely to the possibility of retaliation and the uncertain effect on US companies. It appears that the Trump Administration may have a very different attitude toward such risks.

Last night, Thursday, July 27, the U.S. Senate voted to pass the “Countering America’s Adversaries Through Sanctions Act” by a vote of 98-2. The House of Representatives passed the bill on Tuesday after adding in new sanctions against North Korea. Among other things, the legislation would impose additional sanctions against Russia and restrict President Trump’s ability to withdraw or relax previous Russian sanctions imposed by the Obama Administration.  To learn more about the bill, please see our July 26th post. The Senate created the bill back in June, where it also passed 98-2, before sending it to the House. Despite reports that the addition of North Korea would result in a delay from the Senate, the Senate passed it just over 48 hours after the House.

On Tuesday, July 25, President Trump spoke with The Wall Street Journal, mentioning that the administration would be taking its time on determining whether to restrict steel imports. Trump and Commerce Secretary Wilbur Ross announced in April that the Administration would be investigating the effects of steel and aluminum imports on national security under Section 232 of the Trade Expansion Act of 1962. Although the law gives Commerce 270 days to make its recommendations, their self-imposed deadline on the report for steel was June 30, which came and went with no action.

Yesterday, July 25th, the U.S. House of Representatives passed the “Countering America’s Adversaries Through Sanctions Act” by a vote of 419-3. The bill originated as an act in the Senate which was focused on Iran. In response to Russian meddling in the U.S. election, the Senate expanded that bill to include additional sanctions against Russia, codify various Russia-Ukraine sanctions promulgated by the Obama Administration into law and add procedural provisions to delay or prevent any efforts by the Trump Administration to relax those codified Obama Administration sanctions. The Senate passed their revised version of this legislation last month by a vote of 98-2. For more information on the Senate’s earlier approval, please see our post on June 16th.

On July 13, 2017, the Cast Iron Soil Pipe Institute (CISPI) filed a petition for the imposition of antidumping duties and countervailing duties on imports of Cast Iron Soil Pipe Fittings from China.

SCOPE OF THE INVESTIGATION

The merchandise covered by these investigations is finished and unfinished cast iron soil pipe fittings (“CISPF”), regardless of industry or proprietary specifications. These are nonmalleable iron castings of various shapes and sizes used in conjunction with cast iron soil pipe in the sanitary and storm drain, waste, and vent piping of buildings.

On Tuesday, July 12, 2017, President Trump issued an Executive Order in order to amend Executive Order 13761, which was issued by the Obama Administration in January of 2017. Today’s amendments to EO 13761 allow the State Department additional time to prepare its report on whether the Government of Sudan has sustained the positive activities that the Obama Administration recognized when it originally issued EO 13761.  EO 13761 originally required the report to be delivered by July 12, 2017, but President Trump’s new order pushes that deadline back to October 12, 2017.