International Trade & Supply Chain

On July 14, 2015, following nearly twenty months of talks, international negotiators from seven countries (the United States, the United Kingdom, China, France, Germany, Russia, and Iran) announced that they reached a landmark nuclear agreement to limit Iran’s nuclear program. While this is a historic agreement long in the making, it is important to note that there is no immediate lifting of sanctions against Iran. U.S. government officials have indicated that for now it is status quo for those focused on sanctions compliance.

On June 30, the United States, together with its partners in the P5+1, the EU and Iran, agreed to a seven day extension of the Joint Plan of Action (JPOA), which currently halts progress on Iran’s nuclear program in order to continue negotiations towards establishing a comprehensive and enduring solution.  The initial agreement, reached in November 2013, stipulated that the P5+1 (comprised of the United States, the United Kingdom, France, China, Russia, and Germany) would implement narrow and targeted sanctions relief in return for Iran’s continued commitment to limit its nuclear program.

As tensions between Cuba and the United States continue to thaw, President Obama made a historic announcement today – the U.S. and Cuba will reopen embassies in each other’s capitals. This could prove a watershed moment in the push to normalize relationships between the two countries. Estimates are that the embassies will open by month end, with Secretary of State John Kerry traveling to Cuba for the official opening. This development echoes White House Press Secretary Josh Earnest’s response to his first ever question taken from a Cuban reporter last May – that the White House hoped the two countries would reopen embassies.

 On June 24, the Senate approved the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, granting President Obama trade promotion authority, or TPA. The passage of this “fast-track” authority enables the President to leverage greater support during the upcoming negotiations for the Trans-Pacific Partnership (TPP) by guaranteeing that the trade agreement to be finalized by the 12-nation pact will be sent to Congress for approval without permitting lawmakers to amend the treaty.

The U.S. Department of State rescinded Cuba’s designation as a State Sponsor of Terrorism today.  While the rescission of Cuba’s designation eliminates a major hurdle in restoring diplomatic ties with Cuba, the U.S. trade embargo against Cuba remains in effect, including its restrictions on investment, trade, and travel with Cuba.  Congress has the sole authority to lift the trade embargo.

Rescission of Cuba’s designation as a State Sponsor of Terrorism, however, will affect companies and individuals the following ways:

While Iran has taken center stage in current foreign policy discussions, Congress and the Administration are keenly aware that Cuba is on deck. Following President Obama’s historic meeting with Cuban President Raúl Castro and his announcement of intent to remove Cuba from the list of states that sponsor terrorism, members of Congress have responded by introducing bills both supporting and opposing the President’s policies, including:

The Miscellaneous Tariff Bill (MTB) process provides importers relief from duties on an item-by-item basis, up to $500,000 annually. On April 16, 2015, Senators Rob Portman (R-OH), Claire McCaskill (D-MO) and Pat Toomey (R-PA) introduced bipartisan legislation proposing to reform the MTB process. Many companies consider the new legislation a much overdue step that assists…

On April 16, several pieces of key legislation were introduced that set the stage for a Bipartisan, Bicameral International Trade Package.  Senators Orrin Hatch (R-UT) and Ron Wyden (D-OR) along with Congressman Paul Ryan (R-WI) introduced long-awaited trade legislation to reauthorize Trade Promotion Authority (TPA) and renew several trade preference and liberalization programs.  TPA expired in 2007 and is necessary for the Obama Administration to move forward and conclude the Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership negotiations.

As part of the proposed warming of relations with Cuba, USCIS has announced changes to Cuban family-based immigration policy.  U.S.  immigration policy toward Cuba differs from policy applicable to other countries.  Under the Cuban Adjustment Act, Cubans who enter the United States have a special track to permanent residency.  Further, under the Cuban Family Reunification…