As we discussed in a recent client alert, the U.S. Department of Commerce recently issued a proposed rule (the “Proposed Rule”) which intends to give the U.S. Secretary of Commerce the authority to block, unwind or modify information and communications technology or services (“ICTS”) transactions involving “foreign adversaries” if the Commerce Secretary determines that such transactions threaten U.S. critical infrastructure, the U.S. digital economy or U.S. national security. There were many aspects of the Proposed Rule which were unclear, but the U.S. Department of Commerce indicated its willingness to consider comments from the public which were received on or before Friday, December 27, 2019.
U.S.-Mexico-Canada Agreement (USMCA) Passes House, Setting Stage for Vote in the Senate in 2020
The U.S.-Mexico-Canada Agreement (“the USMCA”) passed the U.S. House of Representatives on December 19, 2019, by a vote of 385 to 41. In order to be fully ratified by the United States, the USMCA must now be approved by the U.S. Senate, which has a total of up to 30 session days after the House
U.S. and China Reach “Phase One” Agreement to Resolve Trade War
After a long period of negotiation, Vice Minister Wang Shouwen of China’s Commerce Ministry announced on December 13, 2019 that the U.S. and China have agreed to “phase one” of an agreement to bring an end to the trade war that has disrupted global supply chains since 2018. China’s confirmation came after President Trump approved
Trump Administration and House Democrats Reach Agreement to Move USMCA Forward
On December 10, 2019, House Speaker Nancy Pelosi stated in a press conference that Democrats had reached an agreement with the Trump Administration on the new U.S.-Mexico-Canada Agreement (“USMCA”) intended as a NAFTA update, clearing the way for Congress to vote on the trade agreement. Speaker Pelosi called the agreement “a victory for America’s workers”
November 2019 Trade Law Update
In Husch Blackwell’s November 2019 Trade Law Newsletter, you’ll learn about the following updates in international trade and supply chain law.
- USTR Announces New Round of Product Exclusions
- U.S.-China Trade Dispute Status Update
- WTO Authorizes China to Impose Tariffs against U.S.
- An update on U.S. Department of Commerce decisions
- U.S. International Trade Commission –
Trump Administration to Restore Section 232 Steel and Aluminum Tariffs on Argentina and Brazil
President Trump unexpectedly announced via Twitter on Monday, December 02, 2019 that the 25% Section 232 steel and aluminum tariffs that were enforced globally in 2018 would be reinstated on imports from Argentina and Brazil, claiming that a “massive devaluation” of the countries’ currencies has given them an unfair trade advantage. Like Canada and Mexico,
Trump Administration Grants 90-Day Extension of TGL for Companies Doing Business with Huawei
The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) announced on Monday, November 18, 2019 the issuance of a new 90-day extension which will allow U.S. companies to continue doing business with Huawei Technologies Co. Ltd. (“Huawei”) under the Temporary General License (“TGL”). BIS did not make any changes to the TGL other
U.S. and China Agree to Gradually Eliminate Tariffs
Doubts over the progress of negotiations between the U.S. and China have been raised today as President Trump announced that the U.S. has not agreed to roll back tariffs as part of an agreement to end the trade dispute, contradicting statements from China’s Ministry of Commerce and several news reports. Based on recent news reports,
USTR Announces Start Date for Section 301 List 4 Exclusion Process
The Office of the U.S. Trade Representative (“USTR”) announced that starting on October 31, 2019, the exclusion process for Chinese imports subject to List 4 Section 301 tariffs of 15% will open and will conclude on January 31, 2020.
Details on the specifics of the application process are to be published in the Federal Register
President Trump Imposes Sanctions Against Turkey for its Syria Offensive
On October 14, 2019, President Trump announced via Twitter his intention to authorize sanctions against Turkey and “any persons contributing to Turkey’s destabilizing actions in northeast Syria.” The announcement followed Turkey’s recent military operation against predominately Kurdish forces in northern Syria, which began following the withdrawal of U.S. troops from the region. Later in the day, President Trump issued an Executive Order (the “Syria-Turkey EO”) to formally implement those sanctions. Under the Syria-Turkey EO:
- The U.S. Secretary of the Treasury is now authorized to impose blocking sanctions on any person that it determines to be: (i) responsible for or complicit in actions that threaten Syrian stability or abuse human rights, (ii) an official or agency of the Government of Turkey, or (iii) operating in sectors of the Turkish economy that the Secretary of Treasury might later decide to target with sanctions. The Syria-Turkey EO also authorizes the Treasury Secretary to impose blocking sanctions on any person (including non-U.S. persons) who provides material assistance, goods or services to or in support of any person sanctioned under the Syria-Turkey EO.
- The U.S. Secretary of the Treasury is authorized to restrict or prohibit foreign financial institutions from opening or maintaining correspondent or payable through accounts in the U.S. if the Treasury Department determines that those foreign financial institutions have knowingly conducted or facilitated any significant financial transaction for or on behalf of any person who becomes subject to the above-described blocking sanctions.
- The U.S. Secretary of State is now authorized to impose menu-based sanctions on any person the Secretary determines to have interfered with peacekeeping and restorative efforts in northern Syria. These authorized menu-based sanctions include (but are not limited to): blocking sanctions, denial of U.S. entry visas and financing-based sanctions.