INTERNATIONAL BUSINESS AND TRADE
Data Privacy
EU:
The European Union (EU) brought into force the General Data Protection Regulation (GDPR) effective May 25, 2018 significantly enhancing the right of an individual to control their own personal data by imposing strict data protection obligations on businesses which must obtain consent for the processing of personal data for consumers who have the rights to data protection and to be forgotten (7 TSJ May 2018, p. 3).
China:
The Cybersecurity Law which went into effect June 1, 2017 in China applies principally to network operators and crucial information infrastructure providers requiring companies to obtain informed consent to collect personal information, implement cybersecurity incident plans and ensure the security of data networks and storage (7 TSJ 32; May 2018).
Japan:
The Act for Protection of Personal Information (APPI) which went into effect in Japan in 2005 to impose certain restrictions on the transfer of personal information exiting Japan was amended to increase the obligations of multinational enterprises to impose restrictions on the transfer of personal information providing the data must be subject to personal consent to the transfer and the destination country must have privacy laws that afford comparable protections as do the laws of Japan (7 TSJ 31, May 2018).
Mexico:
The Mexican federal law on the Protection of Personal Data held by private parties aligns with the European GDPR with respect to affording consumer protection rights, data protection notices and compliance standards for companies which collect, store or use personal data of Mexican nationals (7 TSJ 15; May 2018).
South Korea:
The Personal Information Protection Act (PIPA) of South Korea includes a number of sector specific laws governing the use of personal information in the IT and Financial Services industries affording significant protection since 2016 by enacting stringent penalties for violations (7 TSJ 32; May 2018).
Dispute Resolution
South Korea:
The government launched a challenge to the United States alleging that tariffs on South Korean washing machines and solar products destined for U.S. imports violated the World Trade Organization (WTO) Agreement on imposition of safeguards (35 ITR 689; 5/24/18).
Dumping
US:
Imports of PTFE resin from India benefit from unfair government subsidies according to the U.S. Commerce Department (35 ITR 692; 5/24/18).
Two types of steel imported from Vietnam apparently originated in China and will face anti-dumping and anti-subsidies duties according to the U.S. Commerce Department (35 ITR 696; 5/24/18).
INTERNATIONAL AGREEMENTS AND INVESTMENT
Multilateral Treaties
US:
The U.S. withdrew from the Joint Comprehensive Plan of Action (JCPOA) nuclear deal between Iran, the U.S., China, France, Russia, the UK, Germany and the E.U. which had been agreed in 2015 (69 WorldECR, p. 5, May 2018).
LEGISLATIVE DEVELOPMENTS
National Security and Foreign Investment
U.S.:
The Foreign Investment Risk Review Modernization Act of 2017 (FIRRMA) is aimed at amending the current statutory authorities and expanding the mandate of the Treasury Department Committee for Foreign Investment in the U.S. (CFIUS) powers and scope of review in the interest of U.S. national security (7 TSJ 27, May 2018).
Anti-Corruption
Australia:
The Crimes Legislation Amendment will eliminate certain structural barriers to enforcement in Australia to inhibit foreign bribery (7 TSJ 33; May 2018).
LEGAL DEVELOPMENTS
Anti-Corruption
China:
The government passed a Supervisory Law to create a regulatory authority with significant anti-corruption oversight responsibilities (7 TSJ 18; May 2018).
Digital Data Storage
U.S.:
The Stored Communications Act (SCA) and the recently enacted CLOUD Act changed the rules governing types of data storage overseas by U.S. businesses such that legal process may now be applied to force disclosure and to allow U.S. businesses to respond to certain requests of foreign governments for records that are stored in the United States (7 TSJ 16; May 2018).
Dumping
U.S.:
The Court of International Trade (CIT) ordered the Commerce Department to recalculate anti-dumping duties on imports of certain solar cells and panels from China on the grounds the dumping margin was incorrectly accomplished (35 ITR 691; 5/24/18).
Dumping/Countervailing Duties
US:
CIT ruled that a significant decrease in countervailing duties assessed by the Commerce against JWS Sealed Limited products must be made (JWS Steel Limited v. US, Ct. Int’l Trade, No. 16-00165, 5/19/18; 35 ITR 663).
National Security
U.S.:
The Federal Communications Commission (FCC) proposes a rule intended to address threats to the nation's communication infrastructure by ensuring that money from the Universal Service Fund (USF) is not spent on equipment or services from suppliers that raise national security concerns (7 TSJ May 2018, p. 7; www.fcc.gov/document).
EXPORTS AND SANCTIONS
Anti-Bribery
U.S.:
The Securities and Exchange Commission (SEC) announced that Panasonic Corporation will pay more than $143 million to resolve charges of alleged violation of the Foreign Corrupt Practices Act (FCPA) (7 TSJ May 2018, p. 4).
Anti-Corruption
U.S.:
The SEC announced that Dunn & Bradstreet agreed to pay more than $9 million to resolve FCPA charges arising from improper payments allegedly made by two Chinese subsidiaries (7 TSJ May 2018, p. 5).
Export Controls
Israel:
The Defense Export Control Agency (DECA) expanded the Exception List to significantly reduce the number of non-classified products and technologies excluded from the marketing license exception (69 WorldECR, p.4, May 2018).
U.S.:
FLIR Systems agreed to pay $30 million for alleged violations of the International Traffic and Arms Regulations (ITAR) and the Arms Control Export Act (AECA) by exporting defense articles and defense services including dual-use technical data to third-country nationals of Iran, Iraq, Lebanon and Cuba (69 WorldECR, p.6; May 2018).
Export Destination Licenses
U.S.:
The Office of Foreign Assets Control (OFAC) issued a new Ukraine/Russia related license with FAQ's mitigating impact of recent sanctions on personal trading with RUSAL (69 WorldECR, p. 7; May 2018).
License Suspension
U.S.:
The Commerce Department of Bureau of Industry and Security (BIS) decided to enforce the denial of export privileges for the Chinese corporation ZTE Corporation for engaging in a pattern of deception, false statements and repeated violations in dealing with the U.S. government in respect of violation of the Export Administration Regulations (EAR) and the Iranian Transactions and Sanctions Regulations (ITSR) (69 WorldECR, p. 5; May 2018).
Whistleblowing
U.S.:
The SEC announced it would award approximately $83 million to three whistleblowers who provided information in connection with a single SEC enforcement action against a company which allegedly failed to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act (7 TSJ 14).
INTERNATIONAL DEBT WATCH*
Gross Domestic Product
|
Ind. Prodn
|
Budget Bal.
|
|
Latest
|
QTR*
|
2018*
|
Latest
|
% GDP 2018
|
United States
|
+2.9 Q1
|
+2.3
|
+2.8
|
+3.5 Apr
|
-4.6
|
China
|
+6.8 Q1
|
+5.7
|
+6.6
|
+7.0 Apr
|
-3.5
|
Japan
|
+0.9 Q1
|
-0.6
|
+1.4
|
+2.4 Mar
|
-4.9
|
Britain
|
+1.2 Q1
|
+0.4
|
+1.4
|
+2.9 Mar
|
-1.8
|
Canada
|
+2.9 Q4
|
+1.7
|
+2.3
|
+4.5 Feb
|
-2.0
|
France
|
+2.1 Q1
|
+1.0
|
+2.0
|
+1.8 Feb
|
-2.4
|
Germany
|
+2.3 Q1
|
+1.2
|
+2.3
|
+3.2 Feb
|
+1.0
|
Greece
|
+1.8 Q4
|
+0.4
|
+1.6
|
+1.1 Mar
|
+0.2
|
Italy
|
+1.4 Q1
|
+1.2
|
+1.4
|
+3.6 Mar
|
-2.0
|
Spain
|
+2.9 Q1
|
+2.8
|
+2.8
|
+3.6 Mar
|
-2.6
|
Turkey
|
+7.3 Q4
|
na
|
+4.3
|
+6.8 Mar
|
-2.8
|
Hong Kong
|
+4.7 Q1
|
+9.2
|
+2.9
|
+0.7 Q4
|
+0.8
|
South Korea
|
+2.9 Q1
|
+4.4
|
+2.9
|
-4.3 Mar
|
+0.7
|
Brazil
|
+2.1 Q4
|
+0.2
|
+2.6
|
+1.3 Mar
|
-7.0
|
Mexico
|
+1.3 Q1
|
+4.6
|
+2.1
|
-3.7 Feb
|
-2.3
|
*Excerpts from Economic and Financial Indicators published by The Economist, May 26th, 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..