Canadians Alarmed by Tariff Talk

A new report from the Canadian Chamber of Commerce’s Business Data Lab (BDL) highlights just how mutually beneficial the Canada-U.S. trade relationship is and offers a stark warning about the serious economic consequences of enacting protectionist policies. “There’s an opportunity to learn from long-forgotten history, here," the authors write. "It turns out that the 10% tariff recently proposed by Trump has some echoes of a tariff that was enacted by President Nixon back in 1971. That policy—which was much narrower than Trump’s recent proposal—was a disaster and was quickly reversed.”

Sanctions Guidance Updated by G7

The G7 published joint guidance for industry on preventing evasion of the export controls and sanctions imposed on Russia. The guidance document contains items which pose a heightened risk of being diverted to Russia, updated red flag indicators of potential export control and/or sanctions evasion, Best practices for industry to address these red flags, and screening tools and resources to assist with due diligence.

Connected Vehicle Rule Published

The Commerce Department proposed prohibiting the sale or import of connected vehicles integrating specific pieces of hardware and software, or those components sold separately, with a sufficient nexus to the People’s Republic of China (PRC) or Russia. Published by the Bureau of Industry and Security, the rule focuses on hardware and software integrated into the Vehicle Connectivity System (VCS) and software integrated into the Automated Driving System (ADS). These are the critical systems that, through specific hardware and software, allow for external connectivity and autonomous driving capabilities in connected vehicles.

USTR Finalizes China Tariff Hikes

The Office of the United States Trade Representative (USTR) announced final modifications concerning the statutory review of the tariff actions in the Section 301 investigation China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The tariff increases announced in May 2024 were largely adopted, with several updates to strengthen the actions to protect American businesses and workers from China’s unfair trade practices following the review of more than 1,100 comments from the public.

Welcome to Your WTTL

The Washington Tariff and Trade Letter introduces a web-based format for easier review, research and sharing. Clicking on a story in the newsletter will now bring you to the full text on our new web site. A .pdf version of the newsletter is available below. For any questions about website access and your subscription, please contact us at Info@TradeRegs.com – Or call the Editor, Frank Ruffing, at +1.703.283.5220

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Vol 44 No. 41 October 7, 2024

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The latest news

DDTC Settles with Precision Castparts

Precision Castparts Corp. settled allegations that it violated the International Traffic in Arms Regulations (ITAR) in connection with unauthorized exports of technical data to foreign-person employees from Bhutan, Burundi, El Salvador, Honduras, Mexico, and Peru pertaining to tools (specifically, wax pattern and core dies) and wax patterns consumed in the subsequent production of casting blades used in gas turbine engines

More trade & tariff news

Developing Countries on Environment

However, developing countries want the WTO to pursue a positive trade and environment agenda on several fronts, including on the intellectual property rights front to enable the transfer of technologies that would contribute to the mitigation of carbon emissions, sources said. Ahead of the WTO’s Committee on Trade and Environment meeting next week, the submissions made by developing countries stand in contrast to the issues raised by industrialized countries, said people familiar with the developments.

FCPA Enforcement Up Some, Still Down

After a particularly slow second quarter, FCPA enforcement activity picked up between July and September of 2024, with the DOJ initiating one new FCPA-related enforcement action, unsealing two previously filed actions, and issuing one declination letter, according to a tally from Stanford University's FCPA Clearinghouse. "Enforcement activity through Q3 of this year remained well below even the last three years of lower than average enforcement" the report notes

On the calendar

Exim Minerals Initiative

The Board of Directors at the Export-Import Bank of the United States (EXIM) last week voted to approve a Non-Binding Resolution in Support of Critical Minerals and Rare Earths Financings to reaffirm its support for critical minerals transactions. The resolution amplifies EXIM’s current efforts to utilize its lending and underwriting tools to support critical minerals and rare earths projects.

UFLPA: Steel & Sweetener

For the first time, steel and artificial sweetener companies have been added to the UFLPA Entity List. Customs and Border Protection (CBP) will apply a rebuttable presumption that goods produced by Baowu Group Xinjiang Bayi Iron and Steel Co., Ltd. and Changzhou Guanghui Food Ingredients Co., Ltd.

AD/CVD Aluminum Extrusions Final Determination

The Commerce Department issued a final determination in trade cases targeting aluminum extrusion imports from 14 countries, including China. The department imposed antidumping duties at rates ranging from 2.02% up to 376.85% and countervailing duties at rates ranging from 1.44% up to 168.81%. The U.S. Aluminum Extruders Coalition and the United Steelworkers (USW) union, filed the case.

CTPAT Pilot Bill Signed

Last week President Biden signed S. 794, the “Customs Trade Partnership Against Terrorism Pilot Program Act of 2023” or the “CTPAT Pilot Program Act of 2023,” The bill requires the Department of Homeland Security to carry out a pilot program to assess whether allowing certain third-party logistics providers to participate in the Customs Trade Partnership Against Terrorism would enhance port security or otherwise help meet the goals of the program.

US Commercial Service Data Forms Review

Before the Commerce Department's U.S. Commercial Service can provide export-related services to clients, such as assistance with identifying potential partners or providing due diligence, specific information is required to determine the client’s business objectives and needs. Public comments were previously requested via the Federal Register on July 29, 2024, during a 60-day comment period. This notice allows for an additional 30 days for public comments.

USX Deal Payouts Slammed

Determinedly beating the drum for steelworker votes and economic populism, two of the leading Senate opponents of the purchase of US Steel by a Japanese rival drew attention to the executive compensation of the Pittsburgh steelmaker. Elizabeth Warren (D-Mass) sent a letter to US Steel CEO David Burritt outlining their concerns. with plans for the firm's current and former top executives to receive payments totaling over $156 million – not including $40.8 million in payments to non-employee board members.

EU Delays Deforestation Rules

Developing and developed members applauded the EU decision to postpone the implementation of its new Regulation on Deforestation-Free Products (EUDR) for twelve months. This regulation, which was set to take effect on 30 December 2024, will require a variety of agricultural products sold in the EU market to be "deforestation-free," meaning they must not result from recent (post-31 December 2020) deforestation, forest degradation, or breaches of local environmental and social laws.

WTO Scrambles to Re-appoint DG

Petter Ølberg, Chair of the General Council, has informed WTO members that he has “detected convergence to initiate the appointment process for the next Director-General earlier than anticipated.” As reported earlier, the best interests of the organization, or at least those of Director General Ngozi Okonjo-Iweala, are to get the re-nomination process far along before the arrival of a re-elected President Donald Trump. The DG's current term expires 31 August 2025.