EU-U.S. Privacy Shield Agreement Released
Kathleen L. Benner
On February 29, the European Commission and the U.S. Department of Commerce released the long-awaited text of the European Union (EU) – United States Privacy Shield, an agreement-in-principle that, if approved by European authorities, would replace the Safe Harbor Framework as a potential basis for transatlantic transfers of personal data. The agreement would create a self-certification system whereby companies could agree to certain use, notification, and dispute settlement rules in return for the capacity to transfer data outside of the EU. The Privacy Shield is awaiting approval from a committee of representatives from the 28 EU Member States and the Article 29 Working Party of the European Parliament and Council. In the month since the text’s release, however, critics, including AccessNow, the American Civil Liberties Union, Amnesty International USA, Digital Rights Ireland, and Electronic Frontier Foundation, have argued against the Privacy Shield.
I Wish They All Could Be California…Jeans?
Marcie Schwartz and Patrick J. Togni
Class action litigation filed recently in Los Angeles County Superior Court brings to mind the classic Beach Boys hook. Rather than stating a preference for California Girls, however, the subject is whether J. Brand Jeans were properly labeled “Made in California, USA” under California law. As reported previously, this is an emerging trend in class action litigation which underscores the legal and compliance challenges that may arise in the international supply chain. In this case, the lead plaintiff claims that she purchased the jeans because she trusted the “Made in California, USA” tag and that she would not have done so had she known that the jeans contained foreign components. The complaint also asserts that J. Brand Jeans include foreign components that exceed five percent of the final wholesale value of the product, which is a new requirement under California law. Previously, California law required that the “Made in America” label could only be used on products comprised of 100-percent U.S. components.
United States Prevails in WTO Solar Dispute Against India
Jordan Shepherd
The United States has won its latest dispute at the World Trade Organization (WTO) as a dispute settlement panel issued its report on February 24, detailing the reasons why the local content requirements in India’s National Solar Mission violate its international trade obligations. India, along with the United States and many other countries, has supported the development of green energy, including solar energy. While the United States specified that it supports green energy initiatives that are WTO-compliant, it challenged India’s requirement of using Indian locally made solar cells and modules to gain access to certain preferences in its purchase agreements because of its detrimental effect on U.S. solar equipment providers.
The WTO panel agreed with the U.S. arguments and rejected India’s attempts to justify its requirement under the general exceptions related to government procurement and compliance with other laws and regulations. U.S. Trade Representative Michael Froman emphasized that the United States supports the “rapid deployment of solar energy around the world” but that the panel’s decision to condemn discriminatory policies that “undermine” such progress would benefit “American workers and manufacturers, foreign consumers and the global environment.” Either party may appeal this decision to the WTO’s Appellate Body within sixty days of the release of the panel report.
China Issues 13th Five-Year Development Plan
Lingna Yan
On March 18, China published its National Economic and Social Development 13th Five-Year Plan for 2016-2020. For the next five years, China aims for a medium-to-high economic development pace and to double GDP and per capita income by 2020 compared to the 2010 levels. In a top-level decision-making meeting of the Chinese Communist Party held late last year to discuss the proposal for the 13th Five-Year Plan, President Xi said that China’s annual GDP growth rate for the next five years should not be less than 6.5%. For industrial development, the China Manufacturing 2025 plan and the strategic emerging industries development strategy will continue to be the two main guidelines for the next five years. The Trade and Manufacturing Alert has previously covered developments regarding the China Manufacturing 2025 plan (here) and the strategic emerging industries (here and here). The Chinese government also calls for a strong implementation of the innovation driving development strategy.
