Sen. John Cornyn, R-Texas, introduced a bill that would require a study of whether Canadian and Mexican manufacturers are able to get tariff breaks on non-North American inputs to their goods, and if so, does that affect the cost-competitiveness of products manufactured in the U.S. for domestic and export markets. Cornyn led an unsuccessful effort to convince the Office of the U.S. Trade Representative in 2020 that goods produced inside foreign-trade zones should be treated as products of the U.S. (see 2012020031).
Mexico this month extended the deadline for a measure that will require most organic raw imports and bulk goods to be certified under the country’s organic law (LPO) standards (see 2105120008), the U.S. Department of Agriculture Foreign Agricultural Service reported June 23. U.S. organic certifiers and exporters will have until Jan. 1, 2022, to certify under the LPO “or risk adverse actions by the competent authorities,” the report said. The measure was originally scheduled to take effect June 26 (see 2105040049), but Mexico pushed back the deadline after receiving postponement requests.
The Bureau of Industry and Security is seeking comments on an information collection related to certain “rarely used” short supply activities, the agency said in a notice. The first activity allows U.S. agricultural exporters to register for exemptions from “short supply limitations on export,” and the second activity includes a petition to impose monitoring or controls on recyclable metallic materials. Under the EAR, BIS said U.S.-origin agricultural goods purchased “by or for use in a foreign country and stored” in the U.S. to be later exported may voluntarily be registered with BIS “for exemption from any quantitative limitations on export that may subsequently be imposed under the EAR for reasons of short supply.” BIS previously requested comments Jan. 15 and is extending the comment period for an additional 30 days. Comments are now due by July 26.
CBP’s Commercial Customs Operations Advisory Committee released a partial version of its Export Modernization White Paper, which is meant to serve as a “strategy and roadmap” for the future of the export process (see 2106180025). The paper, presented by the Secure Trade Lanes Subcommittee’s Export Modernization Work Group during a June 23 meeting, includes information on the responsibilities of parties in the export process, where data “actually” originates, who owns the data, how it should be used for export enforcement and more.
The Court of Justice of the European Union found that Venezuela has standing to challenge restrictions made on it by the Council of the EU, according to a June 22 judgment. The CJEU, which overturned a General Court of the European Union ruling that came to the opposite conclusion, said Venezuela can challenge the financial sanctions in European court because the measures are liable to harm Venezuela's economic interests. The General Court originally found that Venezuela had no standing to bring a complaint because it is not an EU member state and had not shown it was directly affected by the sanctions.
The United Kingdom was to begin negotiations June 22 to join the 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Department of International Trade said in a news release. The agreement would welcome the U.K. as its first European member and lower trading barriers for British goods such as whisky and cars.
Senate Finance Subcommittee on International Trade Chairman Sen. Tom Carper, D-Del., and ranking member Sen. John Cornyn, R-Texas, agree that the U.S. should be in the Trans-Pacific Partnership, but the expert witnesses at the hearing they held June 22 showed no path to the U.S. reentering the agreement with the 11 countries that went on to seal the deal. This was despite agreement among most subcommittee members (though not Sen. Sherrod Brown, D-Ohio) and the witnesses that leaving TPP was a tactical mistake that leaves the U.S. at a trade and geopolitical disadvantage.
The European Council extended its sanctions regime on Russia related to its annexation of Crimea and Sevastopol until June 23, 2022, a June 21 news release said. Current restrictions under the regime target European Union imports of Crimea or Sevastopol-origin goods and infrastructural or financial investments and tourism services in the annexed regions. The sanctions were first put in place in June 2014, following annexation by Russia.
CBP’s Commercial Customs Operations Advisory Committee will receive several export modernization recommendations in a white paper expected to be presented during the COAC’s June 23 meeting (see 2106070033), the group said. The “Export Operations for the 21st Century” white paper, presented by the Secure Trade Lanes Subcommittee’s Export Modernization Work Group, will “lay out a strategy and roadmap for the next phase of the export process.” It will also outline where export data “actually originates,” who owns that data and how it should be used for export enforcement, the subcommittee said.
The Office of Foreign Assets Control issued guidance and three new general licenses to expand humanitarian-related exemptions for shipments and activities in sanctioned countries. The licenses apply to Iran, Syria and Venezuela and are accompanied by six new frequently asked questions to “further support the critical work” of humanitarian and COVID-19 aid to people in sanctioned regions. The guidance comes amid criticism from humanitarian groups that U.S. sanctions continue to inadvertently block aid shipments (see 2105260047 and 2105280004).