Treasury Secretary Janet Yellen said the U.S. is working with the world's 20 largest economies in the hopes of arriving at “a global minimum corporate tax rate that can stop the race to the bottom.” If that agreement included an approach to taxation of the digital giants such as Google and Facebook, that would also deflate the digital services tax controversy, which could otherwise lead to additional 25% tariffs on more than $800 million in goods (see 2103290049).
The U.S. and Japan plan to set up a working group on securing supply chains for strategic technologies, including semiconductors, Nikkei Asia said in a report April 1. The two sides will likely agree to terms on the project -- including cooperation on research and development and production of strategic technology components -- when Japanese Prime Minister Yoshihide Suga and President Joe Biden meet in Washington later this month, the report said. Both countries hope to address a global shortage of semiconductors and want to create a system where production doesn’t rely on specific regions that may present geopolitical risks, such as Taiwan and China, the report in Nikkei Asia said. The working group will reportedly include representatives from Japan’s trade and national security agencies and the U.S. National Security Council and the Commerce Department.
Public Citizen's Global Trade Watch, a left-of-center critic of free trade policies, criticized the labeling of other countries' public health, food, environmental and privacy regulations as trade barriers, calling it a “shameful tradition.” The U.S. government produces an annual National Trade Estimates report that includes such information. Trade Watch says taking this approach effectively arms commercial interests to attack domestic attempts to impose similar regulations. “Whatever policies in other countries that U.S. commercial interests may find not to their liking, U.S. government officials should not be in the business of elevating special interest peeves into U.S. policy,” said Lori Wallach, director of Global Trade Watch.
Boeing this week urged the U.S. to separate trade disputes and human rights issues when dealing with China, saying more trade restrictions could cause the plane maker to cede Chinese market share to European competitors. “We cannot afford to be locked out of that market,” CEO Dave Calhoun told the U.S. Chamber of Commerce Aviation Summit March 31, Reuters reported. “Our competitor will jump right in.”
A Delaware financial management company said it received approval from the Committee on Foreign Investment in the U.S. to merge with another Delaware investment management company, according to its March 25 Securities and Exchange Commission filing. Waddell & Reed Financial said it filed a voluntary notice to CFIUS on Jan. 28 regarding its planned merger with Macquarie Management Holdings. After a 45-day review period, CFIUS said March 22 that there were “no unresolved national security concerns with respect to the merger and its review” was completed, Waddell & Reed said. While CFIUS clearance “satisfies a certain condition to the closing of the merger,” the company added that other conditions still need to be met before the merger is completed.
President Joe Biden tapped Daniel Maffei to be the new chairman of the Federal Maritime Commission, the FMC announced March 30. Maffei, a sitting commissioner, replaces Michael Khouri, who was designated to head the FMC by President Donald Trump in 2019. Maffei takes over during a pivotal time for the commission, which is investigating unfair detention and demurrage practices by ocean carriers and other port issues caused by the pandemic (see 2102250039). “Due to the effects of COVID-19 and an unprecedented import boom, we are dealing with serious challenges to America’s international ocean transportation system -- challenges that the FMC has a vital role in addressing, both on its own as an independent agency and in cooperation with other agencies,” Maffei said in a statement. He is a former House member, representing New York.
Newly confirmed Commerce Secretary Gina Raimondo interviewed Chinese technology expert James Mulvenon to head the Bureau of Industry and Security, Reuters reported March 30. It’s unclear whether the interview will lead to a “vetting” for the undersecretary post, the report said, or how many others will be interviewed. A BIS spokesperson declined to comment.
A bipartisan group of former U.S. national security officials asked the Biden administration to support a bill that would establish a State Department office to coordinate export controls, standards setting and other critical technology issues with other democratic nations. The Democracy Technology Partnership Act, introduced in the Senate earlier this month, would help the U.S. better respond to Chinese efforts to dominate global technology sectors and lead in emerging technologies, the former officials said in a March 30 letter to Secretary of State Antony Blinken and National Security Adviser Jake Sullivan.
The Bureau of Industry and Security will hold a virtual forum April 8 to present ways the agency can help boost the competitiveness and capacity of the U.S. semiconductor industry, BIS said in a notice released March 26. The agency earlier this month requested written comments on semiconductor supply chain issues (see 2103110047) but said the forum will give commenters a chance to provide “oral remarks.” Comments will help inform the Commerce Department’s report to the White House as part of a February executive order to address supply chain shortages of semiconductor chips (see 2102240068), BIS said. Officials from BIS and other agencies will participate in the 2 p.m. to 5 p.m. EDT forum. Registration closes 5 p.m. April 1.
The Bureau of Industry and Security last week added a new section to its website to consolidate guidance and rulemaking documents related to human rights. The section includes links to recent Entity List additions related to human rights violations, and advisories for companies operating in China’s Xinjiang region (see 2007010040) and involved in exporting surveillance equipment (see 2009300056).