Husch Blackwell announces its November Trade Law Newsletter on key issues and announcements related to International Trade and Supply Chain.
|November 2018 ||
President Trump Terminates Trade Preference Program Eligibility for Mauritania
On November 2, 2018, President Trump announced his intent to terminate Mauritania’s eligibility for trade preference benefits under the African Growth and Opportunity Act (AGOA), as of January 1, 2019 due to forced labor practices. During its annual AGOA eligibility review, President Trump determined that Mauritania was not making “sufficient progress toward establishing the protection of internationally recognized worker rights.”
U.S. Reimposes Tough Sanctions on Iran; More Designations to Come
On November 5, 2018, the United States fully reimposed sanctions against Iran as part of its decision to withdraw from the Iran nuclear deal, also known as the Joint Comprehensive Plan of Action (“JCPOA”). President Trump announced the decision to withdraw on May 8, 2018, thus beginning the “wind-down” period for businesses to withdraw from Iran.
United States Issues WTO Counter Notification against India’s Market Price Support for Cotton
U.S. Trade Representative Robert Lighthizer and Secretary of Agriculture Sonny Perdue announced on November 13, 2018 that the United States had submitted a counter notification to the World Trade Organization (WTO) Committee on Agriculture (COA) pertaining to India’s market price support (MPS) for cotton. According to the U.S.’s calculations, it appeared that India had substantially underreported its market price support for cotton. India’s market price support for cotton far exceeded its allowable levels of trade distorting domestic support. The next COA meeting was scheduled for November 26-27, 2018.
U.S., Mexico, and Canada Sign NAFTA Replacement
On November 30, 2018 in Buenos Aires, President Trump, Canadian Prime Minister Trudeau, and Mexican President Nieto ceremonially signed the new United States-Mexico-Canada Agreement (USMCA). Although each leader signed the Agreement, this does not mean that it will go into effect, as the Agreement must now be approved by the legislature of each country. In regard to the U.S. legislative process, the next steps will be a 60 day period to submit a list of changes to U.S. law that are required for the Agreement to take effect. At the same time, the Agreement must also be reviewed by the U.S. International Trade Commission to assess the impact the agreement will have on GDP, exports and imports, employment, and U.S. consumer interests. The Commission has 105 days after the signing, or until March 15, 2019, to deliver its report to Congress.
|U.S. Department of Commerce Decisions|
Changed Circumstances Reviews
|U.S. International Trade Commission: Section 701/731 Proceedings|
Sunset Review Decisions
|U.S. International Trade Commission: Section 337 Proceedings|
|Court of International Trade: Summary of Decisions|
On November 1, 2018, the Court remanded the U.S. International Trade Commission’s final negative material injury determination in the antidumping and countervailing duty investigation of truck and bus tires from the People’s Republic of China.18-152
On November 5, 2018, the Court remanded Commerce’s use of a country-wide non market economy (NME) antidumping duty rate and its application of the NME rate on the Plaintiff, Thuan An Production Trading and Service Co., LTD. The Court also sustained Commerce’s requirement of CONNUM-specific FOP reporting.
On November 5, 2018, the Court remanded the ITC’s 1st Remand Results in the antidumping duty investigation covering hydrofluorocarbon (“HFC”) blends and components from the People’s Republic of China. On remand, the ITC concluded that there were “significant” differences in value supporting separate like product treatment for HFC components and HFC blends, and HFC components were not dedicated for use as HFC blends which the Court instructed the ITC to clarify and explain its decision to treat HFC components as a separate like product.
On November 8, 2018, the Court granted the Defendant’s (United States Department of Homeland Security) motion to dismiss and denied the Plaintiff’s (U.S. Auto Parts Network, Inc.) motion for default judgment pertaining to imported vehicle repair parts.
On November 8, 2018, the Court made the decision to sustain and remand the U.S. Department of Commerce’s final determination in the administrative review of carbon and certain alloy steel wire rods from Mexico.
On November 13, 2018, the Court sustained and remanded the U.S. Department of Commerce’s Remand Redetermination in the second administrative review of the antidumping duty order for large power transformers from the Republic of Korea.
On November 13, 2018, the Court remanded the U.S. Department of Commerce’s final results following an administrative review of the antidumping duty order on certain crystalline silicon photovoltaic products from Taiwan.
On November 13, 2018, Columbia Forest Prods vs. United States, the Court denied the motion to stay proceedings. The Court concluded that the plaintiff had failed to meet the standard for a stay because they merely attempted to show that no harm would result from the stay, rather than presenting a clear showing of hardship or inequity in being required to move forward.
On November 26, 2018, the Court sustained the U.S. Department of Commerce’s final results and partial rescission of the 21st administrative review of the antidumping duty order on fresh garlic from the People’s Republic of China.
On November 26, 2018, the plaintiff, Fine Furniture (Shanghai) Limited, ET AL., contended that Commerce’s Final Results from the 3rd Administrative Review of the antidumping duty order on multilayered wood flooring were unsupported by substantial evidence on record. The Court ruled that Commerce was correct in their use of Romania as a surrogate country despite the plaintiffs request that Thailand would be a more suitable surrogate country.
On November 29, 2018, the Court sustained the negative determinations by the U.S. International Trade Commission in the antidumping duty investigation of imports of certain iron mechanical transfer drive components from Canada and the People’s Republic of China and a countervailing duty investigation of imports of certain iron mechanical transfer drive components from the People’s Republic of China.
On November 30, 2018, the Court remanded Commerce’s Final Results in the 1st Administrative Review of Commerce’s Countervailing Duty Order for Crystalline Silicon Photovoltaic Products from the People’s Republic of China for reconsideration consistent with this opinion. The Court remanded to Commerce for its reconsideration of the appropriate rate based on China’s Export Buyer’s Credit Program.
|Court of Appeals for the Federal Circuit|
On November 27, 2018, the CAFC decided to reverse the Commission’s res judicata determination and remanded the matter to the Commission to consider whether to rescind or modify the civil penalty in light of the final judgment of invalidity of the relevant claims of the ‘380 patent. The CAFC found that the Commission’s application of res judicata was error.