The Committee on Foreign Investment in the U.S. is reaching out to companies to warn them of a recent frequently asked question from May that may create “significant obstacles” for tech startups and others trying to raise capital, Wilson Sonsini said in a client alert last week. The CFIUS guidance clarified that the completion date of a transaction is the date when the foreign person obtains any equity interest in the U.S. business, and law firms at the time warned the clarification could lead to problems for parties that for years relied on "springing rights" for minority investments -- deals that allow an investor to acquire equity but not in a way that would make their stake a covered transaction under CFIUS (see 2305300058).
USDA’s Agricultural Marketing Service is seeking public comments as it looks to renew an information collection relating to record-keeping requirements for certain fruit export regulations. The law states fresh apples and grapes grown in the U.S. and shipped to any foreign destination must meet minimum quality and other requirements established by the Export Apple Act and the Export Grape and Plum Act, which are designed to promote fruit exports and “prevent deception or misrepresentation of the quality of such products moving in foreign commerce,” USDA said. Comments are due Oct. 2.
The Biden administration needs a more “credible, durable economic strategy” in the Indo-Pacific than the Indo-Pacific Economic Framework, such as one that involves formal trade agreements, said Matthew Goodman, senior vice president for economics at the Center for Strategic and International Studies. In a July 31 commentary for CSIS, Goodman, a former National Security Council official, said IPEF’s “greatest promise” is “as an incubator for new or revised provisions of a formal trade agreement in the Indo-Pacific region,” including one that includes new or updated chapters on labor, environment, digital standards, supply chain resilience and economic coercion.
Canada's International Longshore and Warehouse Union (ILWU) and the British Columbia Maritime Employers Association (BCMEA) reached a new tentative labor agreement days after ILWU members voted against the previous tentative deal, ILWU Canada and BCMEA announced July 30. BCMEA said both sides are again "recommending ratification of the collective agreement to the union’s membership and member employers."
The Committee on Foreign Investment in the U.S. will hold its second annual conference (see 2205310044) Sept. 14 in-person at the Treasury Department, the agency announced. The conference will include keynote speeches and panel discussions with government officials “who will provide insights on topics relevant to the Committee’s work.” Event registration will open Aug. 21 and agenda information is “forthcoming,” Treasury said.
The State Department approved a potential $120.5 million military sale to Romania of “Assault Amphibious Vehicles” and related equipment, the Defense Security Cooperation Agency said July 27. The principal contractor hasn’t yet been determined.
Rebecca Dye of the Federal Maritime Commission proposed new sets of best practices for ocean carriers and marine terminal operators at the Ports of Los Angeles and Long Beach and the Port of New York and New Jersey, covering activities surrounding container returns, earliest return dates and container pickups.
The Semiconductor Industry Association this week released a report on the state of the American chip industry, highlighting issues surrounding U.S. Chips Act implementation, the manufacturing industrial base, global chip demand, American technological competitiveness, geopolitical tensions impacting the industry and more.
The Commerce and Defense departments this week signed a memorandum of understanding to improve collaboration on their efforts to strengthen the American semiconductor defense industrial base, including through Chips Act funding. The memorandum will increase information sharing between the two agencies, including by allowing officials to coordinate on national security reviews of Chips Act funding applications, Chips Program Office Director Michael Schmidt said. Laura Taylor-Kale, assistant secretary of defense for industrial base policy, said it’s “essential for DoD and DoC to consult one another to ensure we are making complementary investments that support a robust semiconductor industrial base.”
The Committee on Foreign Investment in the U.S. is investigating whether TuSimple Holdings is complying with a national security agreement between CFIUS and the U.S.-based self-driving truck and autonomous freight shipping technology company, TuSimple said. The company said it’s “cooperating with the inquiry,” which is examining “information shared by TuSimple U.S.” with its China-based businesses: Hydron and Hydron’s partners.