The State Department recently approved potential military sales to Australia and Kuwait worth more than $1 billion combined, the Defense Security Cooperation Agency said. The sale to Australia, worth $122 million, is for “LAIRCM Line Replaceable Units” (LAIRCM is Large Aircraft Infrared Countermeasures) and related equipment. The principal contractors will be Northrop Grumman and Boeing.
The Justice Department and the Federal Maritime Commission agreed to more closely cooperate on Shipping Act enforcement, the two agencies announced. DOJ will provide FMC with attorneys and economists from its Antitrust Division to help with enforcement, while FMC will provide the Antitrust Division “support and maritime industry expertise.” The announcement builds on the two agencies’ July memorandum of understanding to foster better cooperation on enforcement and oversight of competition issues in the ocean shipping industry (see 2107120055). “Lawbreakers should know that the Justice Department will provide the Federal Maritime Commission all necessary litigation support as it pursues its mission of promoting competition in ocean shipping,” Attorney General Merrick Garland said in a statement.
Several companies this month disclosed their filings with the Committee on Foreign Investment in the U.S. or updated the status of their ongoing CFIUS reviews. The American telecommunications company Vonage is awaiting a CFIUS decision before completing its transaction with Swedish telecom company Ericsson, Vonage said in a Securities and Exchange Commission filing. Vonage said it doesn’t expect CFIUS to object to the deal, which should be finalized in the first half of this year.
The USDA is planning several in-person foreign trade missions this year, which were halted during the COVID-19 pandemic, in an effort to better connect U.S. agricultural exporters with overseas buyers, said Daniel Whitley, administrator for the agency’s Foreign Agricultural Service. Although the agency hasn’t yet officially confirmed which countries, Whitley said there is strong interest for Southeast Asia, Africa and potentially the U.K. and Kenya as the U.S. negotiates a trade deal with both those nations (see 2201180067).
The State Department approved a potential military sale to Poland worth about $6 billion, the Defense Security Cooperation Agency said Feb. 17. The sale is for “M1A2 SEPv3 Main Battle Tanks” and related equipment. The principal contractors will be General Dynamics Land Systems, BAE Systems, Leonardo DRS, Honeywell Aerospace, Raytheon and Lockheed Martin.
Ukrainian businessman Max Polyakov said he will sell his stake in Texas-based Firefly Aerospace to satisfy the Committee on Foreign Investment in the U.S.’a national security concerns. CFIUS had asked Polyakov to divest his share over concerns that he could transfer valuable U.S. technology from Firefly to Ukraine or Russia (see 2201030057). Polyakov will sell his stake for $1, he said in a Feb. 16 Facebook post. “Dear CFIUS, Air Force and 23 agencies of USA who betrayed me and judge me in all your actions for past 15 months,” he said. “I hope now you are happy. History will judge all of you guys.” Firefly didn’t respond to a request for comment. A spokesperson for the Treasury Department, which chairs CFIUS, declined to comment.
The Office of the U.S. Trade Representative laid out the externalities to other economies of China's state-led economy in a 72-page annual report to Congress. "Since last year’s report, our assessment of China’s record in terms of transitioning to a market economy has not changed," the report said. While the report's framing is about how China complies with World Trade Organization rules, the authors minimized the WTO's ability to constrain China and emphasized that countries must expand domestic trade remedies or develop other tools to deal with China's rise.
The Federal Maritime Commission reminded traders this week about the various resources available to shippers seeking to file complaints. The guidance, released by Commissioner Rebecca Dye, explains the differences between a small claims complaint and a formal complaint and links to the FMC’s Filing a Shipping Act Complaint landing page. Dye said she supports “clarifying Commission procedures through a variety of means,” including holding a webinar.
Twenty-one technology, auto and business groups urged the House and Senate to quickly negotiate a compromise for their China competition bills that would authorize funding for the Chips Act and other domestic semiconductor sector investments. The Democratic and Republican leaders in the Senate and House should “take immediate action to reconcile the two bills” and send a passed version to President Joe Biden, the groups said in a Feb. 16 letter signed by the Semiconductor Industry Association, SEMI, the U.S. Chamber of Commerce, the American Automotive Policy Council and others.
The Federal Maritime Commission is officially seeking feedback on the possibility of new demurrage and detention billing requirements, which could require carriers and terminal operators to include “certain minimum information” with their billings and issue those billings within a certain time frame. The pre-rule, previewed by the commission earlier this month (see 2202070026), is part of a larger FMC effort to address fees and other problems in the international ocean freight delivery system that have been exacerbated by the COVID-19 pandemic (see 2011200024 and 2107290021). Comments on the rule, released Feb. 14, are due March 17.