The federal government is, thankfully, back open for business. But the sixteen day shutdown, which disrupted a broad array of U.S. trade agency functions, will continue to have ramifications for months to come as federal agencies extend deadlines and work through backlogs.
The Department of Commerce ("Commerce") and the International Trade Commission ("ITC") suspended all antidumping and countervailing duty ("AD/CVD") proceedings during the shutdown period. Both agencies are tolling deadlines in ongoing cases by sixteen days. Filings due on November 4, for instance, are pushed back to November 20. This will delay the trade remedies that would otherwise be available to a number of domestic industries injured by unfairly traded imports. For example, Commerce was forced to delay the initiation of new AD/CVD investigations based on petitions filed in September by domestic industries making grain-oriented electrical steel, non-oriented electrical steel, and monosodium glutamate. In addition, preliminary and final relief will be delayed in ongoing investigations involving imports of oil country tubular goods, chlorinated isocyanurates, ferrosilicon, steel threaded rod, hardwood plywood, and silica bricks. The tolling also affects all ongoing administrative and sunset reviews of existing orders, which will delay the final assessment of AD/CVD duties on imports.
Although the federal courts, including the Court of International Trade ("CIT"), remained open for the duration of the shutdown, litigation in many cases was delayed by the unavailability of government lawyers from the Department of Justice. Most briefing, oral arguments, and other deadlines at the CIT were (or will be) extended, which will delay the resolution of pending trade appeals.
The government shutdown has also impacted businesses that make products falling within the scope of the U.S. export control and sanctions programs. The Commerce Department's Bureau of Industry and Security ("BIS") was unable to accept new applications for export licenses and pending requests were put on hold, which prevented some sellers of dual-use and high-tech goods from exporting their products outside the U.S. during the shutdown. The approval process may be slowed down for some time to come as BIS works through its backlog. Exports were also affected during the shutdown by the closure of the U.S. Export-Import Bank, which was unable to approve new loans to finance U.S. exports.
The shutdown also hampered efforts by the United States Trade Representative ("USTR") in various trade negotiations. USTR was forced to postpone the second round of negotiations of the Transatlantic Trade and Investment Partnership ("TTIP"), which had been scheduled to occur during the week of October 7. The TTIP is a proposed trade agreement with the European Union aimed at removing trade barriers in a wide range of economic sectors. Talks will continue, and the shutdown is not expected to affect the substance of the negotiations. In addition, due to the budget crisis in Washington, President Obama canceled his proposed trip to attend the Trans-Pacific Partnership ("TPP") negotiations in early October. Although the Administration has asserted that the President's absence from this meeting did not hamper the negotiations, it has become increasingly apparent that the talks will not be concluded by the end of the year, which is the Administration's goal.
