U.S. Trade Representative Katherine Tai and Deputy USTR Jayme White headed to Cancun, Mexico, to meet with Mexican Economy Secretary Raquel Buenrostro and Canada's trade minister, Mary Ng, ahead of the official USMCA Free Trade Commission meeting on July 6.
House lawmakers submitted a host of proposed export control- and sanctions-related amendments as part of the FY 2024 National Defense Authorization Act, including measures that could ease defense technology sharing restrictions, harmonize the Entity List with certain U.S. sanctions and investment restrictions and place new export control requirements on items destined to China and Iran. Other amendments could lead to new sanctions on Chinese technology companies and government officials, add the USDA to the Committee on Foreign Investment in the U.S., establish a new sanctions coordination office in the State Department and more.
The Canadian Food Inspection Agency is extending its deadline for the new shipborne dunnage program to Nov. 6, Livingston International said June 30. The original directive for the program, published Jan. 6, made the deadline for compliance July 6. The extension was announced to "allow more time for the industry to address implementation issues," Livingston said. The order also includes amendments to "approved heat treatments and marking requirements made under the International Standards for Phytosanitary Measures (ISPM) 15," Livingston said. CFIA did not immediately respond to our request for comment.
The European Commission on June 30 created two new tariff-rate quotas for steel goods released for free circulation in Northern Ireland from other parts of the U.K. The new TRQs, under the bloc's steel safeguard regulation and effective July 1, will allow Northern Ireland companies to use the EU's steel TRQs to access British-origin steel in the two categories without paying the 25% tariff, the commission said.
Upcoming European rules surrounding artificial intelligence products will have significant supply chain implications for developers and suppliers, lawyers said last week. They also suggested one provision in the law could lead to a surge in EU AI imports before the restrictions take effect.
The State Department approved two potential military sales, to Poland and Norway, the Defense Security Cooperation Agency said June 28. The $15 billion sale to Poland includes an “Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS)” and related equipment, and the principal contractors will be Raytheon, Lockheed Martin Missiles and Fire Control, and “another original equipment manufacturer to be selected to develop and produce generator sets.” The $293 million sale to Norway includes “Small Diameter Bomb II” and related equipment, with Raytheon Missile Systems as the principal contractor.
Many companies are grappling with how best to comply with the Commerce Department’s foreign direct product rule, “one of the key areas” still “unaddressed” by the agency’s regulations and guidance, said Kim Strosnider, a trade lawyer with Covington. She said Commerce’s compliance expectations for the FDP rule are rising despite due diligence challenges faced by industry, pointing to the agency’s record $300 million penalty against Seagate Technology in April (see 2305080029 and 2304190071).
The European Council dropped two names from its Democratic Republic of the Congo sanctions regime following a ruling from the EU General Court. The individuals, Kalev Mutondo and Emmanuel Ramazani Shadary, were originally listed for obstructing the 2018 elections in the Congo, the council said June 19. In March, the General Court ruled that the council failed to adequately link Shadary and Mutondo and the security situation in the Congo.
The Department of Defense recently released a new set of recommendations designed to speed up military goods exports under its Foreign Military Sales program, an initiative long requested by defense companies. DOD said the recommendations highlight “key FMS pressure points” and are aimed at “breaking historical inefficiencies in the United States' transfer of defense articles and services to foreign allies and partners.”
The U.S. and Mexico have been consulting about U.S. complaints about favoritism to Mexican energy providers for 11 months, with no public movement toward a dispute settlement panel, and Karen Antebi, a former NAFTA negotiator, said she doesn't expect that to change in the next year.