The Department of Commerce Initiates National Security Investigation of Imports of Titanium Sponge under Section 232

Clint Long

On March 4, 2019, the U.S. Department of Commerce (“Commerce”) initiated an investigation under Section 232 of Trade Expansion Act of 1962 to determine the impact of imports of titanium sponge on U.S. national security. In explaining the decision to initiate the investigation, Secretary of Commerce Wilbur Ross stated that titanium sponge is “the primary form of titanium metal from which almost all other titanium products are made,” and the product “has uses in a wide range of defense applications, from helicopter blades and tank armor to fighter jet airframes and engines.”

Commerce’s titanium sponge investigation is the latest in a number of Section 232 investigations initiated by Trump Administration. The Administration has initiated investigations under Section 232 relating to imports of steel, aluminum, uranium, and automobiles and automotive parts. Depending on Commerce’s findings and recommendations and President Trump’s ultimate decision, the investigation of titanium sponge may result in tariffs on imports of the product, as occurred in the steel and aluminum investigations.

Commerce has invited interested parties to submit comments on the national security effects of imports of titanium sponge by April 22, 2019. Rebuttal comments are due by May 22, 2019.

Brazil, Australia and Guatemala Challenge India’s Sugar Cane Subsidies at the World Trade Organization

Saud Aldawsari

On February 27, March 1, and March 15, 2019, Brazil, Australia, and Guatemala initiated challenges to India’s sugar cane subsidy program at the World Trade Organization (“WTO”). The three countries allege that India provides subsidies to Indian sugarcane and sugar producers in violation of the WTO’s Subsidies Code.

Among other things, Brazil, Australia and Guatemala assert that India improperly maintains a minimum selling price for sales of sugar by Indian sugar mills and provides other forms of financial assistance to sugar producers, including production subsidies and “soft” loans designed to offset sugarcane price arrears. They also allege that India provides subsidies to Indian producers that are contingent on compliance with minimum export quotas, as well as subsidies to cover transport and other freight charges that facilitate sugar exports.