The Commerce Department will approve more temporary licenses to U.S. exporters selling “general merchandise” to Huawei, U.S. National Economic Council Director Larry Kudlow said on CBS and Fox News on June 30, potentially providing relief to both U.S. firms and China’s telecommunications tech giant. Although specific details have not yet been released, Commerce plans to grant export licenses for products that China can easily get from other countries, including “various chips and software,” Kudlow said.
Country of origin cases
In the June 28 edition of the Official Journal of the European Union the following trade-related notices were posted:
The European Union and Mercosur on June 28 agreed to a trade deal that will eliminate most tariffs on trade between the two blocs, the European Commission said in a press release. “The agreement concluded today will cover a population of 780 million and cement the close political and economic relations between the EU and Mercosur countries,” the press release said.
More than 25 industry associations are asking the Commerce Department to allow more time for public comments on Commerce’s next advance notice of proposed rulemaking for foundational technologies, which is expected in the coming weeks. The associations asked for a 90-day comment and review period in a June 27 letter to Commerce Secretary Wilbur Ross.
Russia renewed a ban on food imports from the U.S., European Union member states and others until Dec. 31, 2020, according to an unofficial translation of a June 24 Russian government notice and a post on the EU Sanctions blog. The ban was originally scheduled to last through Dec. 31, 2019, and also bans food imports from Canada, Australia, Norway, Iceland, Albania, Montenegro, Liechtenstein and Ukraine.
Laos recently set new certificate requirements for non-resident importers and exporters that were set to take effect June 27, according to an alert from the law firm Tilleke & Gibbons. Under the new regulation, importers and exporters in Laos that have no registered business in the country will require a Trading Rights Certificate from the Department of Import and Export in order to sell and purchase goods. The goods can’t be sold directly to consumers in Laos, and must be sold through authorized distributors. To be eligible for a certificate, the importer or exporter must operate in accordance with the laws of their country of origin, have not committed an offense or be involved in criminal proceedings related to trade or financial matters, and must come from a World Trade Organization member country.
A bipartisan effort to reduce fentanyl trafficking passed the Senate June 27 on the must-pass defense authorization bill. The amendment would dedicate some money for investigations into which Chinese companies are supplying fentanyl to the U.S. black market. It also requires sanctions on drug manufacturers in China that knowingly provide synthetic opioids to dealers, and would sanction financial institutions that assist those manufacturers or international drug cartels. However, Senate Minority Leader Chuck Schumer's staff could not say by press time how much money would be appropriated.
Trade lawyers talking about changes to NAFTA's rule of origin said they're fairly optimistic the trade deal rewrite will be ratified in Congress in 2019. But aside from the auto sector, which has a multiyear transition period, they're concerned that by the time ratification comes, there won't be time for importers and exporters to adjust by Jan. 1, 2020, when the replacement agreement is supposed to be in force.
There is significant tension and disagreement between the Defense and Commerce departments about the reach of U.S. export controls, said Jamie McCormick, a staffer for House Appropriations Committee Republicans, June 27 at the American Association of Exporters and Importers Annual Conference in Washington. McCormick said the confusion surrounding foundational technologies among U.S. industry leaders may stem from the original passage of the Export Control Reform Act of 2018, adding that he believes the executive branch does not agree on a definition for foundational technologies. “I’m not certain that at the time they passed the bill that the executive branch could say with any certainty what they meant by foundational technologies,” McCormick said.
In the June 26 edition of the Official Journal of the European Union the following trade-related notices were posted: