ON OUR DESKS
- Advising on recent export controls changes
- Analyzing how improved customs and shipping data sharing would improve supply chains
- Preparing client strategies for China 301 tariff review
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
Up next: Register for upcoming WIBC discussions here
- October 18: Deputy Assistant Secretary of Commerce for the Middle East and Africa Camille Richardson, the business environment and commercial partnerships in Africa and the Middle East
- October 27: Deputy Head of Mission of the British Embassy James Roscoe, the United Kingdom’s economic and political relationship with the U.S.
Up next: Register for upcoming WIBC discussions here
WIBC discussions are open to WIBC members only. Not a member? Contact Christina for membership inquiries.
YOU NEED TO KNOW
China tariffs
Five months after commencing a statutory four-year review of the Section 301 tariffs on imports from China, USTR notified on October 12 that it will be accepting public comments on the tariffs beginning November 15 with a deadline of January 17, 2023.
Comments will inform the second phase of USTR’s tariff review, after USTR determined in September that it will continue implementing the tariffs due to requests from domestic industries.
USTR will post on November 1 more detailed questions to inform its review, seeking input on the impact of the tariffs on U.S. workers, U.S. manufacturing, critical supply chains, U.S. technological leadership, and tariff inversions (i.e., where additional tariffs on goods are lower than additional tariffs on inputs used to produce those goods). IBC is working with affected clients to prepare comments and is available for further support on request.
Contact: Steve Ziehm
National Defense Authorization Act (NDAA)
The Senate added an additional 75 amendments to its 2023 NDAA in updates released this week.
Among the new Senate amendments are authorization bills for the State Department, Maritime Administration, Coast Guard and intelligence agencies. Other new amendments include those that would identify and sanction individuals who help circumvent sanctions by buying or selling Russian gold; authorize billions of dollars of support for Taiwan; prohibit other countries from engaging in collective actions to impact the oil market; and bar procurement, operation or other spending on drones from countries of concern, including China. Other new amendments less likely to become law include an authorization of the use of American military force, if necessary, to protect and defend Taiwan.
The House passed its version of the 2023 NDAA (HR 7900) in July. The Senate hopes to take up its bill after the November elections. There are now more than 900 amendments filed under the NDAA with fewer than twenty percent likely to be included in the final bill.
Contact: Chris Benscher
IMF/World Bank
The World Bank (WB) and IMF held their annual meetings this week as Multilateral Development Banks (MDB) faced growing demands for reform by a group of countries, led by the United States and Germany, holding more than 50% of the World Bank’s shares.
Late last week, Treasury Secretary Yellen outlined possible changes for MDBs, including to mobilize “private finance, and deploy a broader range of instruments, including guarantees and insurance products, to mobilize more private capital into their projects.” Much of Yellen’s speech echoed a recent G20 report and came as the Biden Administration prioritizes reforming other MDBs like the Inter-American Development Bank (IDB) as part of the Americas Partnership for Economic Prosperity.
The IMF also lowered expectations for global economic growth in 2023 to 2.7% and raised its expectation for inflation to hit 6.5% (compared to a forecast 5.7% earlier this summer). IMF also issued specific warnings for economic growth in Asia and inflation and debt in Latin America.
Contact: Ethan Knecht
Russia
Treasury and Commerce, along with the office of the Director of National Intelligence, hosted on October 14 senior officials from 30 nations on the margins of the World Bank annual meeting.
The meeting examined Russia’s military industrial complex to identify vulnerable areas and degrade Russia’s ability to continue its war in Ukraine. Allied countries will likely issue new measures targeting identified weak areas in the coming days.
State, Treasury, and Commerce also released a report summarizing the U.S. response to the invasion of Ukraine. The document outlines current sanctions and examines the “strategic intent” behind them.
Separately, National Security Council spokesman John Kirby on October 13 accused Saudi Arabia of helping Russia fund the war by pushing for OPEC’s recent oil production cut. The White House and Treasury have previously threatened to sanction countries and parties who “materially support” Russia. Secretary of State Antony Blinken said the Administration is now reviewing a range of possible responses.
Quick takes
- A memo to staff sent by the head enforcement official from Commerce’s Bureau of Industry and Security indicates parties on the “unverified list” will be moved to the entity list if Commerce is unable to verify their bonafides within 60 days. Listed entities are subject to blanket license requirements for all U.S. exports.
- The Biden administration’s new National Security Strategy on October 12 identifies Russia and China as the United States’ primary competitors but notes that only China has the capabilities needed to challenge the current international order. The report highlights technological competition as a major focus and contemplates the use of export controls and investment screening to restrict the transfer of technologies to China.
- Mexico’s Minister of Economy and Under Secretary for International Trade were forced to resign in the past week. The new Economic Minister, Raquel Buenrostro, is the former head of the tax authority and her appointment is seen by some analysts as a signal that President Lopez Obrador was “hardening his stance” in ongoing negotiations over USMCA disputes.
- Israel and Lebanon agreed to a permanent maritime boundary that will give Lebanon access to offshore natural gas resources while Israel enhances its security.
NOTICES, BILLS & HEARINGS
Federal Register Notices
- Commerce/BIS, Implementation of additional export controls, October 13
- EOP, National Emergency in relation to Syria, October 13
- EOP, National Emergency related to narcotics traffickers in Colombia, October 13
- EOP, Principles for Collection of Signals Intelligence, October 14
- Treasury/OFAC, North Korea sanctions designations, October 13
- Treasury/OFAC, Burma sanctions designations, October 13
- USITC, Complaint: Electronics, Semiconductors, and Components, October 14
Legislation
House
- H.R.9168 (Malinowski, D-NJ) Removes U.S. military from Saudi Arabia.
Senate
- S.5074 (Blumenthal, D-CT) Stops direct commercial and foreign military sales to Saudi Arabia for one year.
WHO’S WHO
Arrivals
- Kristina Costa, Deputy Assistant to the President for Clean Energy Innovation
- Livia Shmavonian, Made in America Director
- Michelangelo Margherita, Head of Trade and Agriculture for the EU Delegation
- Pablo Saavedra, World Bank VP for Equitable Growth, Finance, and Institutions
- Ambassador Pamela Hamamoto, U.S. Negotiator for the Pandemic Accord
- Tara Sinclair, Deputy Assistant Secretary of the Treasury for Macroeconomics
Want more scoops on personnel moves? Find the most recent Who’s Who here.
UPCOMING EVENTS
- Chinese Communist Party Congress (Beijing), October 16
- WHO World Health Summit 2022 (Geneva), October 16-18
- EU Foreign Affairs Council (Luxembourg), October 18
- APEC Finance Ministerial (Bangkok), October 19-21
Looking farther ahead? Find the most recent full international events calendar here.