INTERNATIONAL BUSINESS AND TRADE 

Dumping

WTO:          

World Trade Organization (WTO) found that China continues to impose illegal duties on imports of U.S. poultry broiler products since its initial ruling in 2013 (35 ITR 128; 125 18).

U.S.:           

The Commerce Department determined that Bombardier sold C-S series aircraft at less than “fair value” affirming a preliminary ruling leaving the International Trade Commission (ITC) to find whether such imports materially injure or threaten material injury to the U.S. (35 ITR 13; 14 18).

Dumping/Countervailing Subsidies

U.S.:           

The Commerce Department found that producer and exporters in China and India have received unfair government subsidies for production of polyester fiber leaving the ITC to determine threatened or actual injury to the U.S. (35 ITR 132; 125 18).

The Commerce Department preliminarily found Spanish exporters were selling olives in U.S. at less than “fair value” (35 ITR 130; 125 18).

Intellectual Property

U.S.:

In August 2017 the Executive Branch issued an Executive Memorandum directing the U.S. Trade Representative (USTR) to consider investigating China over its IP policies particularly the practice of forcing U.S. companies which operate in China to transfer technological know-how (35 ITR 100; 118 18).

INTERNATIONAL AGREEMENTS AND INVESTMENTS

Intellectual Property

U.S.:

The U.S. is the first country to join a new Asian Pacific Economic Cooperation (APEC) effort to certify privacy and security compliance trust marks for companies that process personal data by participation in the Privacy Recognition for Processors (PRP) System (35 IRT 38; 14 18).

LEGISLATIVE DEVELOPMENTS

Corruption

Argentina:    

The National Congress passed a bill creating criminal liability for legal entities engaged in corruption  (5 TSJ, January 2018, p. 18).

Cyber Security

China:          

June 2017 China enacted the new Cyber Security Law (CSL) provision requiring personal information and private data generation in the course of business operations within China to be stored in China necessitating   submission of details to the competent government regulator for assessment before a cross-border transmission (5 TSJ January 2018, p. 35, 37).

Export Controls

EU:             

The European Union (EU) amended its “dual-use” export regime regulating the licensing of exports to include abuse of human rights considerations as a key factor in deciding whether to grant an export license (66 WorldECR, January 2018, p. 5).

U.S.:           

The U.S. Department of Justice issued a new Corporation Enforcement Policy specific to the Foreign Corrupt Practices Act (FCPA) providing that when a company voluntarily discloses misconduct, thoroughly cooperates in the investigation, makes restitution and disgorges illicit profits that they will be eligible for pre-determination by the Department which will decline to prosecute the company under such conditions  (5 TSJ, January 2018, p. 15).

Foreign Investments

U.S.:           

Bipartisan legislation has been submitted in the House and the Senate to overhaul and expand U.S. administrative process for vetting foreign transactions where national security concerns are raised by the Committee on Foreign Investment in the U.S. (CIFIUS)(S.2098; H.R. 4311) (35 ITR; 125 18).

Government Procurement

U.S.:           

The U.S. Defense Department adjusted the thresholds for acquisitions made through the WTO amending the values for supply and construction contracts according to its Defense Federal Acquisition Regulation Supplement (DFARS) becoming effective January 1, 2018 (35 ITR 41; 14 18).

International Trade

U.S.:           

Certain import chemicals used in varieties of specialty products would be reduced or eliminated under the Miscellaneous Tariff Bill (MTB) reducing cost of importation of almost 1,700 products (35 ITR 133; 125 18).

Sanctions

U.S.:          

The Counter America’s Adversaries Terrorist Sanctions Act (CAATSA) caused the creation of the “Oligarch Report” listing persons close to the Kremlin with names of senior foreign political figures and oligarch Russians who are identified with or tied to corruption or other activities whom may merit sanctions (66 WorldECR January 2018, p. 2).

20 December, 2017 an Executive Order (EO 13818) was issued declaring that prevalence of human rights abuses and corruption threatens to undermine international, political and economic systems which blocked assets of thirteen persons listed from thirteen different countries around the world allowing the sanctioning of foreign persons responsible for directly or indirectly committing serious human rights abuses (66 WorldECR January 2018, p. 19).

Italy:  

17 January 2018 Legislative Decree number 221 entered into force to organize and simplify the authorization procedures for exported “dual-use” items and technologies under a new export trade controls regime (66 WorldECR January 2018, p. 21).

LEGAL DEVELOPMENTS

Data Protection

India:           

The Supreme Court of India declared privacy as fundamental right protected under the Indian constitution (5 TSJ, January 2018, p. 31).

Dumping

U.S.:

February 22, 2018 USTR announced a solar industry safeguard measure starting with tariffs of 30% in the first year scaling down to 15% by the fourth year for the protection of the U.S. solar industry based upon the findings of the ITC that Chinese products directly caused injury to domestic U.S. solar producers (35 ITR 130; 125 18).

EXPORTS AND SANCTIONS

EU Resolutions

EU:             

The latest sanctions implements the EU position to align with the UN Security Council Resolution against North Korea including a ban on exported textiles and a cap on oil imports (WorldECR, January 2018, p. 7).

Export Controls

India:           

India was admitted as the 42nd member to the Wassenaar Agreement which requires participant countries to share their arms transfer data on  permissions or denials of dual-use goods and technologies to countries that are a party to the agreement (66 WorldECR January 2018, p.28).

Human Rights

U.S.:

The Office of Foreign Assets Control (OFAC) made a number of designations under the Magnitsky Act, the Global Magnitsky Act and other sanctions regimes that certain human rights abusers and corrupt actors around the world will be “blocked” persons under its screening lists (66 WorldECR January 2018, p. 8).

INTERNATIONAL DEBT WATCH*

*Excerpts from Economic and Financial Indicators published by The Economist, January 27th, 2018.

Sources: The Government Contractor (GC); Thomson Reuters Publishers; Federal Contracts Report, Bloomberg BNA, Bureau of National Affairs, Inc. (FCR); International Trade Reporter (ITR), International Trade Reporter Decisions (ITRD), TMIJ-Tax Management International Journal; IL – International Lawyer; FT – Financial Times; TE – The Economist Magazine; WSJ – Wall Street Journal; ILN/ABA-International Law News, American Bar Association; WorldECR; www.worldecr.com; London, England; Trade Security Journal (TSJ), London, U.K..