INTERNATIONAL BUSINESS AND TRADE
Dispute Resolution
WTO:
The U.S. filed an objection against China at the World Trade Organization (WTO) for the $7 billion worth of retaliatory levies against U.S. exports to China (34 ITR 1242; 9/27/18).
Trade Policy
U.S.:
About $10 billion worth of exports and imports of leather goods to and from China is now affected with higher tariffs according to the Chinese Leather Association (Bloomberg News, Posted September 28, 2018; Bureau of National Affairs; https://www.bna.com/bloomberglaw/feedback/).
LEGISLATIVE DEVELOPMENTS
Philippines:
Implementing rules and regulations (IRR) will begin taking effect for the national export trade law under the Strategic Trade Management Act (STMA) (73 WorldECR Oct. 2018, p.31).
U.S.:
Office of Foreign Assets Control (OFAC) is issuing an amendment to the sanction regulations on the Democratic Republic of the Congo to implement Executive Order 13671 taking effect November 15, 2018 (31 CRF Part 547) [subscriptions@subscriptions.treas.gov].
OFAC is issuing an amendment to the sanction regulations on Transactions sanctions on Iran (31 CFR Part 560) [subscriptions@subscriptions.treas.gov].
Ukraine General Licenses were extended [subscriptions@subscriptions.treas.gov].
LEGAL DEVELOPMENTS
ICJ:
The International Court of Justice (ICJ) in the Hague, The Netherlands has granted Iran’s plea for “provisional measures” following the U.S. re-imposition of sanctions since the exit from the Joint Comprehensive Plan of Action (JCPOA)(73 WorldECR Oct. 2018, p.7).
U.S.:
The National Defense Authorization Act (‘NDAA’) was signed for implementation for fiscal year 2019 with a key to protect US technological advances through closer scrutiny of technology transfer to foreign persons and includes the expanded regulatory jurisdiction and enforcement through the Export Control Reform Act as well as expanded export controls on activities of U.S. persons (ECRA) (73 WorldECR Oct. 2018, p.36).
U.S.:
Selection of a country wide rate established in an underlying less-than-fair value investigation was reasonable after the country wide entity rate calculated by the Commerce Department in an administrative review was invalidated by litigation (Pharm-Rx Chem.Corp. v. US, CIT, # 1600225; 9/07/18).
EXPORTS AND SANCTIONS
Compliance Guidance
EU:
The European Union (EU) identified 7 core elements to identify best practices for “dual-use” trade control compliance guidance (73 WorldECR Oct. 2018, p.2).
Sanctions
U.S.:
The Administration issued Executive Order (EO) dated 20 Sep 18 authorizing implementation of the Countering America’s Adversaries Through Sanctions Act (‘CAATSA’) for suspected interference of Russia in U.S. elections and continued activities in the Ukraine (73 WorldECR Oct. 2018, p.3).
OFAC extended the expiry date under general licenses allowing persons to make divestiture of existing contracts with the GAZ Group (www.treasury.gov/resource-center/sanctions)
J.P. Morgan Chase Bank, N.A. settled OFAC allegations of 87 violations of the Cuban Assets Control Regulations by payment of $5.2 million USD (73 WorldECR Oct. 2018, p.3).
Sanctions were imposed on a non-U.S. entity for engaging in significant transactions with a Russian defense sector included on the State Department List of Specified Persons (LSP) (73 WorldECR Oct. 2018, p.7).
SIA Falcon International Group and 3 individuals were designated as blocked persons under Executive Order 13551 for trading with North Korea in violation of the UN Security Council resolution (www.treasury.gov/resource-center/sanctions)
INTERNATIONAL DEBT WATCH*
|
Gross Domestic Product
|
Ind. Prodn
|
Budget Bal.
|
|
|
Latest
|
QTR*
|
2018*
|
Latest
|
% GDP 2018
|
|
United States
|
+2.9 Q2
|
+4.2
|
+2.9
|
+4.9 Aug
|
-4.8
|
|
China
|
+6.7 Q2
|
+7.4
|
+6.6
|
+6.1 Aug
|
-3.6
|
|
Japan
|
+1.3 Q2
|
+1.9
|
+1.1
|
+2.2 July
|
-3.8
|
|
Britain
|
+1.3 Q2
|
+1.5
|
+1.3
|
+1.0 July
|
-1.7
|
|
Canada
|
+1.9 Q2
|
+2.9
|
+2.3
|
+2.5 Jun
|
-2.3
|
|
France
|
+1.7 Q2
|
+0.6
|
+1.8
|
+1.7 Jun
|
-2.4
|
|
Germany
|
+1.9 Q2
|
+1.8
|
+2.0
|
+1.2 July
|
+1.7
|
|
Greece
|
+2.3 Q1
|
+3.1
|
+2.0
|
+1.2 Jun
|
-0.2
|
|
Italy
|
+1.1 Q2
|
+0.7
|
+1.2
|
+1.7 Jun
|
-2.0
|
|
Spain
|
+2.7 Q2
|
+2.3
|
+2.7
|
-2.0 Jun
|
-2.7
|
|
Turkey
|
+7.4 Q1
|
na
|
+4.3
|
+2.9 Jun
|
-2.8
|
|
Hong Kong
|
+3.5 Q2
|
-0.9
|
+3.4
|
+1.0
|
+1.9
|
|
South Korea
|
+2.8 Q2
|
+2.4
|
+2.8
|
-0.9 July
|
+1.0
|
|
Brazil
|
+1.2 Q1
|
+1.8
|
+1.6
|
+3.5 Jun
|
-7.0
|
|
Mexico
|
+2.6 Q2
|
-0.6
|
+2.1
|
+1.3 July
|
-2.3
|
*Excerpts from Economic and Financial Indicators published by The Economist, September 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.
