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International Issues Update

By September 16, 2022No Comments

ON OUR DESKS

  • Secured U.S. government support in assisting with export certificate for a regulated product  
  • Reported on outcomes of Indo-Pacific Economic Framework (IPEF) Ministerial
  • Analyzed climate and economic impacts from global shipping delays
  • Prepared CEO briefings for the UN General Assembly

How can we help you? Email any IBC counsellor for assistance or consult our issues list to find the expert you’re looking for.

WIBC DISCUSSIONS

In case you missed it:

  • Critical infrastructure resilience and cybersecurity with Cybersecurity and Infrastructure Security Agency Deputy Director Nitin Natarajan

Up next: Register for upcoming WIBC discussions here

  • September 23: Treasury Director of Foreign Assets Control Andrea Gacki, U.S. sanctions agenda
  • September 27: State Deputy Assistant Secretary for East Asian and Pacific Affairs Camille Dawson, U.S. political and economic priorities in East Asia

*Please note that WIBC’s usual conference room is under construction during the month of September, so we are using alternate venues. Please pay careful attention to the locations for each event.

WIBC discussions are open to WIBC members only. Not a member? Contact Christina for membership inquiries.

YOU NEED TO KNOW

Trade

USTR is accepting until October 23 public comment on significant trade barriers to be included in the 2023 National Trade Estimate (NTE). IBC is available to assist with preparation of NTE submissions, on request.

G7 trade ministers met September 15 in Germany and agreed to advance reform of the WTO with an “aim of improving the WTO rulebook.” The ministers also met with Ukraine’s Minister of Economy Yulia Svyrydenko to support Ukraine’s reform and recovery efforts through trade. In a joint statement issued on the margins of the ministerial, the United States, the EU, and Japan reemphasized their commitment and pledged to strengthen efforts to eradicate all forms of forced labor from the rules-based multilateral trading system.    

Contact: Steve Ziehm

US- Mexico High Level Economic Dialogue

At the second annual meeting of the relaunched U.S.-Mexico High-Level Economic Dialogue (HLED) on September 12, senior government officials emphasized collaboration on semiconductors, clean energy, supply chains, workforce and migration issues as the two countries assessed progress on the bilateral economic relationship.  

Responding to questions about Mexico’s energy policy, Secretary of State Antony Blinken pointed to a “shared opportunity” to promote clean energy through producing electric vehicles together. Mexico will host the North American Leaders Summit in December, when the United States and Mexico will also mark 200 years of bilateral relations. 

Separately, potentially impacting future bilateral talks, a bipartisan Florida congressional delegation filed on September 8 a novel Section 301 petition requesting that USTR investigate certain seasonal and perishable agricultural imports from Mexico, including strawberries, blueberries, squash, and cucumbers. USTR has 45 days to decide whether to accept the petition. Mexico has previously threatened retaliatory measures should the United States restrict imports of these goods.

Contact: Steve Ziehm

U.S. foreign investment screening

In a September 15 Executive Order, President Biden outlined new priorities and criteria for review of inbound investment. The EO directs the Committee on Foreign Investment in the United States (CFIUS) to prioritize the review of transactions with national security relevance that may have an effect on supply chains and U.S. technological leadership and to examine trends that may seem innocuous individually but pose a threat in aggregate. The President also directed CFIUS to prioritize transactions that may implicate cybersecurity or data privacy.  

The White House is also considering screening outbound investments for potential technology transfer risks, according to statements made by Peter Harrell, National Security Council Senior Director for International Economics and Competitiveness. Harrell stressed the move, intended partially to cover gaps in export controls, remains under consideration. He also emphasized that any new screening regime would be narrowly tailored and crafted with full consultation from the private sector.

Contact: Pat Sheehy

Russia 

President Biden is expected to announce career diplomat and current ambassador to Armenia Lynne Tracy as the next US ambassador to Russia. Formal notification has reportedly been given to Russia, with timing of her formal nomination and subsequent confirmation uncertain. 

Treasury issued on September 15 a new tranche of sanctions against 22 individuals and 2 entities, as well as new restrictions on the export of quantum computing services to Russia. 

Commerce issued the same day new restrictions on export to Russia and Belarus of common chemicals such as ethanol, sulfur, and ammonia, as well as on export of items related to chemical and biological weaponry, quantum computing, and advanced manufacturing. Commerce also extended certain existing controls on Russia to include Belarus and issued new export license requirements for export to BIS-identified military end users (“MEUs”) linked to the Belarusian, Burmese, Cambodian, Chinese, Russian, and Venezuelan military or intelligence industrial bases. Exporters have a higher due diligence obligation to screen their partners for MEU activity.

Contact: Pat Sheehy

Quick takes

  • The Taiwan Policy Act of 2022 advanced out of the Senate Foreign Relations Committee on September 14, moving to the full Senate but facing uncertain prospects unless attached to the National Defense Authorization Act (NDAA). The bill provides for $4.5 billion in military financing and requires sanctions on certain Chinese officials and financial firms but does not include earlier proposed provisions to establish a senior U.S. diplomatic representative in Taiwan.  
  • President Biden issued on September 12 an executive order directing substantial federal investment in biotechnology across multiple sectors, including a reported $1.5 billion in expected DOD investments for bioindustrial manufacturing. Some media reporting picked up on food industry implications, though food was mentioned relatively little in the EO. 
  • Sweden’s razor-tight parliamentary elections shifted power to the hard right, resulting in Prime Minister Magdalena Andersson’s September 14 resignation and seen as part of a trend in European national politics. The change in government is not expected to impact Sweden’s planned accession to NATO.  

NOTICES, BILLS & HEARINGS

Federal Register Notices

Legislation

 House

  • H.R.8869 (Claudia, R-NY) Would deny U.S. entry to sanctions individuals pursuant to Executive Order 13876.
  • H.R.8868 (Steel, R-CA) Would repeal the sunset provision of the Iran Sanctions Act of 1996.
  • H.R.8852 (Jacobs, D-CA) Would direct the Secretary of Veterans Affairs to carry out a pilot program on food insecurity.
  • H.R.8842 (Chabot, R-OH) Would authorize the transfer of certain defense articles and services to Taiwan.
  • H.R.8836 (Burgess, R-UT) Would exempt certain small companies that utilize foreign exchange from certain capital and margin requirements in order to enhance opportunities for small businesses to improve trade and export markets.
  • H.R.8813 (Sires, D-NJ) Would direct USG to support extending the mandate of the Independent International Fact-Finding Mission on Venezuela which is set to expire in September 2022.
  • H.R.8808 (Donalds, R-FL) Would acquire U.S. cobalt refining capacity.
  • H.R.8799 (Wenstrup, R-OH) Would promote freedom of information and counter censorship and surveillance in North Korea.
  • H.R.8783 (Jackson, R-TX) Would provide for emergency acquisition authority in the event of armed attack against a United States ally or partner by a foreign adversary of the United States.
  • H.R.8782 (Harshbarger, R-TN) Would require disclosure by Department of Homeland Security contractors of contracts with Chinese entities.

​​Senate

  • S.4856 (Cruz, R-TX) Would require the denial of admission to the United States for individuals subject to sanctions pursuant to Executive Order 13876.
  • S.4850 (Thune, R-SD) Would amend Public Law 117-169 to prohibit the EPA from using funds for livestock methane monitoring.
  • S.4848 (Graham, R-SC) Would provide for the designation of the Russian Federation as a state sponsor of terrorism.
  • S.4843 (Cruz, R-TX) Would permit visiting dignitaries and service members from Taiwan to display the flag of the Republic of China.
  • S.4824 (Menendez, D-NJ) Would provide for proper oversight of North Korea policy.
  • S.4820 (Lee, R-UT) Would protect communications networks from the Chinese Communist Party Espionage Act.
  • S.4815 (Capito, R-WV) Would simplify timelines and assure regulatory transparency.

Upcoming Congressional Hearings 

House

Senate

WHO’S WHO

Arrivals

  • Robert Palladino, Deputy Executive Secretary of State
  • Elizabeth Irwin, Director for Cyber Policy and Programs, Office of the National Cyber Director

Want more scoops on personnel moves? Find the most recent Who’s Who here.

UPCOMING EVENTS

  • Funeral of Queen Elizabeth II (London), September 19
  • UN Private Sector Forum (New York), September 19  
  • UNGA general debate (New York), September 20-26 
  • Committee of Permanent Representatives in the European Union (Coreper) I & II (Brussels), September 21 
  • G20 Trade Ministerial (Bali), September 21-23

Looking farther ahead? Find the most recent full international events calendar here.

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