The State Department completed an interagency review for a final rule that would amend the International Traffic in Arms Regulations. The rule, sent for review Sept. 6 (see 2209120001) and completed Sept. 14, would make changes to “prohibited exports, imports, and sales to or from certain countries.”
U.S. rail companies and union negotiators this week agreed to avoid a labor strike that would have caused “catastrophic impacts on industries, travelers and families across the country,” the Department of Labor said Sept. 15. The two sides agreed to forego the strike, which was scheduled to begin at midnight Sept. 16, after 20 consecutive hours of negotiations, the agency said. The “tentative” deal for rail workers “balances the needs of workers, businesses and our nation’s economy.”
U.S.-based Snapdragon Chemistry, a drug services company, said China-based pharmaceutical firm Asymchem won't acquire it after the companies failed to receive approval from the Committee on Foreign Investment in the U.S. The two companies, which first announced the acquisition in February, were “unable to agree to mitigation terms that would satisfy” CFIUS, Snapdragon said this month. “We are disappointed this deal was unable to be completed," Snapdragon CEO Matthew Bio said. "The goal of the deal was to expand domestic manufacturing capacity and be able to deliver a full range of drug development services to our clients.”
U.S. goods exports to China this year are on pace with the low export numbers from 2021, although energy exports have dropped 13% and semiconductor exports continue to suffer, the Peterson Institute for International Economics said this week. And even though agricultural exports to China are up 16% this year, Chinese purchases of U.S. goods are still falling well short of commitments made under the Trump administration’s phase one trade deal, PIIE said. “The promise” of President Donald Trump's “trade war and agreement was that things should have been much better for US exporters by now.”
The State Department sent a final rule for interagency review that would amend the International Traffic in Arms Regulations. The rule, sent for review Sept. 6, would make changes to “prohibited exports, imports, and sales to or from certain countries.”
Two senior Bureau of Industry and Security officials are in Singapore this week to discuss emerging technology export controls with their government counterparts in Asia and Europe and members of industry. BIS said Thea Kendler, the agency’s assistant secretary for export administration, and Matthew Axelrod, the agency’s top enforcement official, will discuss the multilateral response to Russia’s invasion of Ukraine and will speak about export control laws and regulations at several events organized alongside a range of trading partners. In addition, Kendler will speak at the inaugural Women in Strategic Trade Conference Sept. 14, which “provides an opportunity to collaborate internationally on increased opportunities for women in export controls.”
The Biden administration is considering an executive order that would impose outbound investment restrictions on advanced technology-related transactions in China and other “hostile” countries, The Wall Street Journal reported Sept 8. The order, which could be issued in the next couple of months, would build on legislative proposals that sought to establish a screening mechanism for certain American investments that could cede U.S. technology leadership to third countries, the report said (see (2207140035 and 2209060036). The White House didn’t comment.
The State Department approved a potential military sale to Pakistan, the Defense Security Cooperation Agency said Sept. 9. The sale includes $450 million worth of F-16 equipment, parts and support services. The prime contractor will be Lockheed Martin.
The designation of Russia as a state sponsor of terrorism would not be “the most effective or strongest path forward to hold Russia accountable,” and “could have unintended consequences for the world and for Ukraine as well,” a State Department spokesperson said during a press briefing Sept. 6. Asked about President Joe Biden’s announcement the previous day that he would not designate Russia, the spokesperson said the designation could “seriously affect the ability to deliver assistance to Ukraine,” and “could drive critical humanitarian and commercial actors away from facilitating food exports and engaging in the country.”
The State Department approved three potential sales of military equipment and services to Taiwan, worth a combined $1.105 billion, the Defense Security Cooperation Agency said Sept. 2. The first sale includes Sidewinder missiles and related equipment for an estimated cost of $85.6 million, with Raytheon Missiles and Defense as the prime contractor. The second includes Harpoon missiles and related equipment for an estimated cost of $355 million, with Boeing as the prime contractor. The third sale is of contract logistics support for the Surveillance Radar Program (SRP) and related equipment for an estimated cost of $665.4 million. Raytheon Technologies is the prime contractor.