The Office of Foreign Assets Control last week removed a former Lebanon-based small business owner from its Specially Designated Nationals List after he sued the Treasury Department over his designation in December, arguing that OFAC unfairly delayed a decision on his delisting request.

Seven Senate and House Democrats issued a joint statement May 16 criticizing the Trump administration’s reported new AI agreements with the United Arab Emirates and Saudi Arabia, saying the deals don't have “credible security assurances” to prevent U.S. “adversaries” from accessing advanced American chips.

The U.S. government needs more exemptions for close allies to quickly buy controlled defense items and weapons, both under the International Traffic in Arms Regulations and the Foreign Military Sales program, witnesses and lawmakers said during a congressional hearing on defense exports last week. Without significant ITAR and FMS reform, several lawmakers said they fear more countries will source more of their defense purchases from other countries, including potentially China.

The U.K. plans to impose swifter and more “robust” penalties on sanctions violators as part of an effort to better deter companies and others from breaching trade and financial restrictions, the country said this week.

Chris Pratt, President Donald Trump’s nominee to be assistant secretary of state for political-military affairs, said May 15 that the Trump administration has directed him to address the delays and other complaints that are frequently made about the U.S. defense export process, including the International Traffic in Arms Regulations (ITAR).

The U.K. should be wary of language in the recently announced trade framework with the U.S. (see 2505090006) that calls on Britain to comply with certain supply chain security requirements, which they said the U.S. could use to pressure the U.K. in its trading relationship with China, the U.K. Parliament heard from witnesses this week.

The U.S. government could improve its ability to wield its economic statecraft tools, including sanctions, export controls and investment screening, by making several organizational changes, such as creating an interagency coordinating body co-led by a new high-ranking official at the State Department, a researcher told the House Foreign Affairs Subcommittee on East Asia and the Pacific May 14.

The Trump administration has a chance to create a “simpler, stronger” version of the soon-to-be-repealed AI diffusion rule (see 2505130018), including one that maintains strict export controls on adversaries while imposing few or no controls on close allies, researchers said this month.

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President Donald Trump announced May 13 that he plans to order the “cessation of sanctions against Syria” to give the war-torn country a “chance at greatness.”