The Biden administration should impose sanctions on people and companies contributing to the climate crisis, especially those that are also violating human rights, lawmakers said in a Nov. 4 letter to the Treasury and State departments. The lawmakers specifically pointed to the illegal deforestation of the Amazon, which is damaging not only the climate but also indigenous peoples. Global Magnitsky sanctions could “deter” government officials, corporations and people “from causing additional harm” to the environment, the letter said.
Sen. Bob Menendez, D-N.J., introduced a bill last week that would impose export controls and sanctions on those responsible for the murder of journalist Jamal Khashoggi in 2018. Introduced Nov. 3, the bill would restrict exports of certain defense items and services to Saudi Arabia to “protect human rights.” Sens. Patrick Leahy, D-Vt., and Ron Wyden, D-Ore., are co-sponsors. The Treasury Department in March sanctioned a senior Saudi official and a government agency for their involvement in Khashoggi’s death (see 2102260056).
Senate Foreign Relations Committee members introduced a bill Nov. 4 that would require more export controls and sanctions against those contributing to or profiting from the civil war in Ethiopia. The bill, introduced by committee Chair Sen. Bob Menendez, N.J., ranking member Sen. Jim Risch, R-Idaho, and Sen. Chris Coons, D-Del., “builds upon” the U.S.’s Ethiopian sanctions regime by requiring “targeted sanctions” against people and entities undermining peace in the country, doing certain business with senior government leadership, providing weapons to the warring parties and more. Although the Biden administration in September established a new Ethiopian sanctions regime (see 2109170036) and recently increased export restrictions for defense exports to Ethiopia (see 2110290004), the U.S. hasn’t yet issued specific sanctions.
The Senate Finance Committee voted 15-13 to recommend that Tucson Police Chief Chris Magnus be the next CBP commissioner. All Democrats and Sen. Bill Cassidy, R-La., supported Magnus, who would be the first openly gay head of CBP, in the Nov. 3 vote. A floor vote hasn't been scheduled for his nomination.
A draft bill released this week could expand certain CBP enforcement authorities over exports. The legislation, which is being drafted by Sen. Bill Cassidy, R-La., would broaden CBP's authority to suspend and fine traders for illegal exports, including counterfeit shipments or goods that violate intellectual property rights, according to a draft summary of the bill. It would also grant “discretionary authority” for the seizure of exports and “excludes goods summarily forfeited from notice requirements.” The bill is aimed at modernizing U.S. customs laws to better address “national and economic security, enhance data integrity, confront international adversaries, and better facilitate trade by utilizing emerging technologies.”
The Senate Finance Committee has scheduled a Nov. 3 vote on Chris Magnus' nomination for CBP commissioner.
New draft text of Congress’ Build Back Better Act budget reconciliation bill includes a tax credit to incentivize advanced semiconductor manufacturing, which would help “strengthen” U.S. supply chains, the Semiconductor Industry Association said Oct. 28. The incentive, included in the reconciliation package released by congressional Democrats Oct. 28, would create an investment tax credit of up to 25% for certain “advanced manufacturing facilities” and a tax credit for certain “eligible components.” The credit would specifically be available for “property for the manufacturing of semiconductors and semiconductor tooling equipment” that begins construction before 2027. The package hasn’t yet received a vote.
Sen. Todd Young, R-Ind., and Sen. Tom Carper, D-Del., told U.S. Trade Representative Katherine Tai that she should talk to Chinese officials about that country's decision to buy medical devices based on the lowest price. The two sent a letter Oct. 26 that said before the volume-based procurement rules came into effect, the U.S. exported $6 billion annually in medical devices to China and imported not much more from China in that category. "The medical device industry employs over 400,000 Americans and pays on average 28% higher wages than other manufacturing jobs. Given the importance of this industry to our country’s economy, we must pursue policies that hold China accountable for deliberate actions that harm our job creators and employees. China keeping the current structure of the VBP in place will have ripple effects in communities supported heavily by the medical device industry and could jeopardize access to life-saving products made through cutting-edge technologies," they said.
Sen. John Kennedy, R-La., reintroduced a bill that would require a review by the Committee on Foreign Investment in the U.S. for all “greenfield” investments made by certain Chinese businesses on U.S. soil. The bill, introduced last week, would specifically require CFIUS to look at any foreign investment that “involves the acquisition of real estate in the U.S. and the establishment of a U.S. business on such real estate” and that “results in China’s direct or indirect control of that U.S. business.” These investments would trigger a mandatory declaration with CFIUS if China’s government has a “substantial interest” in the deal.
Although it's not known what sort of electric vehicle purchase incentives might be included in Build Back Better legislation, Canada and Mexico are arguing to congressional leaders that offering larger tax credits for U.S.-assembled electric vehicles hurts both the integrated North American auto industry and undermines the USMCA.