The Senate’s China competition bill will now include legislation introduced by two senators earlier this year aimed at securing U.S. leadership in emerging technologies. Sens. Chris Van Hollen, D-Md., and Roy Blunt, R-Mo., said their National Strategy to Ensure American Leadership Act will be included in the Endless Frontier Act, which is expected to see a vote before the Senate soon (see 2105130025). The two senators’ original bill called for the Commerce Department to work with the National Academies of Sciences, Engineering and Medicine to identify the 10 most critical emerging technology challenges facing the U.S. and recommend steps to ensure U.S. leadership in those technologies. Commerce is in the middle of crafting a series of export controls over emerging and foundational technologies (see 2105040063 and 2103190037).
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The Federal Emergency Management Agency is no longer restricting exports of four categories of personal protective equipment and other items used to combat the COVID-19 pandemic, the agency announced May 19. FEMA said its restrictions -- originally announced in April 2020 (see 2004080018) and extended in December (see 2012300017) -- no longer apply to industrial N95 respirators, certain surgical masks, certain piston syringes and certain hypodermic single lumen needles. Other export restrictions still apply, the agency said, including for surgical, single-use N95 respirators, and certain nitrile gloves and surgical gowns.
The Philippines recently lowered tariffs and increased its quota volumes for pork due to “surging” pork prices caused by the African swine fever, the U.S. Department of Agriculture Foreign Agricultural Service said in a May 18 report. The measures “significantly” lowered the most favored nation tariff rates on fresh, chilled and frozen pork from the original 30% in-quota and 40% out-quota rates. The report includes a table outlining the new in-quota and out-quota tariff rates, which are expected to remain in effect for one year.
China has reached out to several members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in the hopes of joining the trade agreement that was originally created to exclude it, Bloomberg reported May 17. Officials from Australia, Malaysia, New Zealand and possibly others have had talks with the Chinese about the agreement initiated by the U.S. to balance China's growing power. President Donald Trump pulled out of the CPTPP in 2017; Japan subsequently took over and concluded negotiations the following year. China would be the largest economy in the pact if it were to join but faces an uphill battle as views of China have become increasingly negative in CPTPP member nations, the report noted.
Mexico and Canada emphasized how the COVID-19 pandemic has proven the need for interlinked supply chains, but U.S. Trade Representative Katherine Tai emphasized supply chains' downside as she, Mexico's economy minister and Canada's trade minister sat down to the first Free Trade Commission meeting of the USMCA. Tai said, "Not only have we discovered the fragility of our supply chains, but we have just begun to appreciate the degree to which they run counter to our collective goals of ensuring that workers within North America, and outside it, are paid a fair wage, in a safe workplace."
Former Trans-Pacific Partnership negotiator Wendy Cutler told an audience for an Atlantic Council webinar that the U.S. cannot rejoin even a renegotiated TPP in the next two years, and maybe not during the next four. Cutler, a vice president of the Asia Society Policy Institute, said that the administration should try to ink mini-deals with TPP countries on digital trade, like it did with Japan, and said that maybe there can be coordination on supply chains or climate and trade. Cutler was also chief negotiator on the Korea free trade agreement.
After the European Union announced May 17 that it will not double retaliatory tariffs on U.S. exports on June 1, exporters expressed relief. More significantly, the joint statement between the EU and Office of the U.S Trade Representative said the two sides are aiming for a united approach to global overcapacity distortions that would allow the 25% and 10% tariffs under Section 232 to be removed at the end of the year. Domestic metal producers welcomed that news, but the union that represents steelworkers reacted with some alarm.
The Bureau of Industry and Security issued more than $100,000 in combined penalties against two companies for illegally exporting thousands of dollars worth of goods to Iran, Russia and Ukraine. BIS imposed a $60,000 fine and temporarily denied the export privileges for Kleiss & Co., a Netherlands-based company that BIS said illegally shipped “extruded butyl sealants” from the U.S. to Iran. The agency also fined Texas-based TeleDynamics $55,000 for illegally exporting rifle scopes from the U.S. to Russia and Ukraine.
The U.S. issued guidance last week to address industry uncertainty and a rising number of questions about export licensing jurisdiction for goods sent under its Foreign Military Sales Program. The guidance -- which includes frequently asked questions developed by Homeland Security, CBP and the Commerce, State and Defense departments -- was issued because the agencies “continue to receive questions” about exports that were moved from the U.S. Munitions List to the Commerce Control List but are exported under FMS authority. They said exporters are “having difficulty” understanding how Commerce’s Export Administration Regulations, the State Department’s International Traffic in Arms Regulations and the FMS Program “relate to each other” for goods that have recently transitioned from the ITAR to the EAR.
The Senate likely will vote on the Endless Frontier Act next week and should pass the bill before the end of the moth, Majority Leader Chuck Schumer, D-N.Y., said May 13. The bill, which would provide more federal funding and incentives for semiconductor research, has “strong” bipartisan support, Schumer said, and will help maintain U.S. technological leadership over trade competitors, including China. “The Endless Frontier Act would right the ship by making one of the largest investments in American innovation in generations,” Schumer told the Senate.