USTR Initiates 2017 Annual Review Of Generalized System Of Preferences Product And Country Practices
Elizabeth Owerbach
On August 11, 2017, the United States Trade Representative (USTR) published a Federal Register notice (the Notice) announcing the Initiation of the 2017 Annual GSP Product and Country Practices Review. The Generalized System of Preferences (GSP) “promotes economic development by eliminating duties on thousands of products when imported from one of 120 designated beneficiary countries and territories.”
The Notice grants parties an opportunity to petition “to modify the list of articles that are eligible for duty-free treatment under” GSP, “and to modify the GSP status of certain GSP beneficiary developing countries because of country practices.” USTR had previously scheduled a hearing on Bolivia’s country practices but determined to expand the scope of that hearing to address practices in the following countries: Argentina, Ecuador, Georgia, Indonesia, Iraq, Laos, Thailand, Ukraine, and Uzbekistan.
The Notice announces the following key dates:
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September 12, 2017: Deadline for submission of comments, pre-hearing briefs and requests to appear at the hearing.
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September 26-27, 2017: Public hearing on the GSP country practice review of Bolivia, extended to include September 27th to provide interested parties with an opportunity to submit testimony on all country practice petitions accepted in previous years that continue to be under review (listed above).
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October 17, 2017: Deadline for submission of post-hearing briefs. Deadline for submission of petitions to modify the list of articles eligible for duty-free treatment under the GSP and new petitions to review the GSP status of any beneficiary developing country.
USTR will announce at a later date decisions on the petitions accepted for review. Please see the USTR website for further information regarding current reviews, eligible products, and eligible countries.
KORUS Renegotiation Yet To Begin In Earnest
Saud Aldawsari
South Korean and U.S. officials failed to agree on whether and how to proceed with renegotiation of the U.S.-Korea Free Trade Agreement (KORUS). In July, the United States Trade Representative (USTR) called a special Joint Committee meeting under KORUS to renegotiate the free trade agreement. In late August, South Korean Trade Minister Kim Hyun-chong and Ambassador Robert Lighthizer held their first meeting on this topic via a video conference. Minister Kim proposed a “joint study to research, analyze, and assess the effect of” KORUS prior to any renegotiations. USTR Lighthizer repeated President Trump’s intent to secure “substantial improvements” to KORUS.
In related news, the Advisory Committee for Trade Policy and Negotiations (ACTPN) suggested that any KORUS modernization be approached carefully in light of concerns over North Korea. In particular, ACTPN urged the Trump Administration to “not allow bilateral trade disputes to signal any friction or weakness in our mutual support."
Ransomware Attacks Against U.S. Manufacturers Are On The Rise
Patrick J. Togni
The term ransomware refers to a malicious cryptware attack that prevents or limits users from accessing their systems unless a ransom is paid. Victims of a successful ransomware attack might be presented with something like the following message on their computer screen:
“If you see this text, then your files are no longer accessible, because they have been encrypted. Perhaps you are busy looking for a way to recover your files, but don’t waste your time. Nobody can recover your files without our decryption service. We guarantee that you can recover all your files safely and easily. All you need to do is submit the payment and purchase the decryption key.”
Press reports indicate that U.S. manufacturers (particularly in critical segments including primary metals, machinery, energy, and transportation) face an increasing risk of costly disruptions due to ransomware attacks. The U.S. Department of Homeland Security Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) recently issued a report which indicated that the “critical manufacturing sector” accounted for the highest number of cybersecurity incidents that were analyzed by ICS-CERT in Fiscal Year 2016. Ransomware attacks can paralyze production facilities and leave U.S. manufacturers unable to fulfil just-in-time orders or secure new business. Ransomware attacks also are frequently combined with other forms of industrial espionage, including data theft.
