ON OUR DESKS
- Analyzed prospects for tax legislation during the lame duck and 118th Congress
- Assisted with export compliance
- Preparation of comments for 4-year review of Section 301 China tariffs
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:
- November 9: Deputy Assistant Secretary of State for Trade Policy and Negotiations Tony Fernandes, Global trade policy and negotiations affecting international business
Up next: Register for upcoming WIBC discussions here
- November 16: Assistant Secretary of State for Energy Resources and former U.S. Ambassador to Ukraine Geoffrey Pyatt, International energy policy
- November 22: Deputy Assistant Secretary of State for India Nancy Izzo Jackson, the Administration’s economic and political priorities in India
WIBC discussions are open to WIBC members only. Not a member? Contact Christina for membership inquiries.
YOU NEED TO KNOW
Midterm Elections
Democrats succeeded in minimizing typical anti-incumbent losses in the midterm elections on November 8, although the final results deciding partisan control of the House and Senate are still to be determined as of this writing. Congress will return for the lame duck session starting November 14. Given the likelihood of Republican control of the House in the 118th Congress, this session may provide Democrats with a final chance to address tax (child tax credit) and trade (TAA) priorities prior to the 2024 election.
President Biden in a post election press conference said he anticipated working with Republican colleagues on a number of issues, including confronting Russia’s aggression in Ukraine. However, he said he would not compromise with Republicans to reverse climate commitments or taxes on corporations. He also said that he intends to run for the 2024 presidential election and will make a final decision early in 2023.
Contact: Chris Benscher
COP27
The 2022 United Nations Climate Change Conference, or COP27, opened November 6 in Sharm El-Sheikh, Egypt. The first day of COP27’s 11 thematic days, known as finance day, focused on adjusting finance mechanisms to give poorer countries greater access to green loans. Egypt’s finance ministry released three initiatives, based on the Bridgetown Initiative, which, if implemented, would lead global finance institutions, including the World Bank and IMF, to increase loans available to poorer countries to adapt to climate disasters.
In a side event, U.S. climate envoy John Kerry announced on November 9 a major expansion of the First Movers Coalition, the public-private partnership to commercialize clean technologies through advance purchase commitments. Kerry also launched a process to design an Energy Transition Accelerator (ETA) to catalyze private capital for the clean energy transition in emerging and developing economies. The sale of the credits would raise money for renewable energy projects or climate adaptation efforts in low-income nations. 13 countries in Africa also launched their own carbon market called the Africa Carbon Markets Initiative (ACMI). In other developments, the United States and China reportedly resumed informal talks on bilateral climate policy that had been suspended since the summer. President Biden is set to leave on November 10 to attend COP27.
Contact: Chris Benscher
Inflation Reduction Act
Several U.S. trading partners filed comments with the Treasury Department this week as part of the Biden administration’s rulemaking on the electric vehicle tax credits included in the Inflation Reduction Act (IRA). The European Union, South Korea, and Japan, among others, raised concerns about the discriminatory nature of the tax credits and called for changes prior to the issuance of regulations. The EU, in particular, noted that if implemented in its current form, the IRA risks creating tensions that could lead to reciprocal or retaliatory measures. The EU called for joint engagement in the EU-US Task Force on the Inflation Reduction Act to set out “concrete, amicable solutions” to the EU’s concerns.
Contact: Steve Ziehm
Quick takes
- Chinese President Xi Jinping has begun in-person re-engagement with his counterparts following the COVID-19 pandemic, with a meeting scheduled with President Biden at the sidelines of the G20 in Indonesia next week. German Chancellor Olaf Scholtz and Vietnamese Communist Party leader Nguyen Phu Trong both visited Beijing in the past two weeks, while Xi is reportedly considering travel to Saudi Arabia by the end of the year.
- The U.S. Treasury delivered a semi-annual report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States on November 10, noting continued enhanced analysis of Switzerland. The report highlights China, Japan, Korea, Germany, Malaysia, Singapore, and Taiwan as needing special scrutiny and reiterated previous calls for transparency from China.
- The Commerce Department revoked Russia’s market economy status for antidumping proceedings. Going forward, Commerce will apply an alternative methodology to calculate the antidumping duties on imports from Russia, likely resulting in higher tariffs.
- Colombia’s legislature passed a major $4 billion reform to its tax code that would increase duties on oil and coal, single-use plastics, and processed foods and beverages to fund an expanded social welfare state. The law will also impose a wealth tax and raise income tax rates on high earners.
NOTICES, BILLS & HEARINGS
Federal Register Notices
- DFC, Public hearing in accordance with the BUILD Act, November 7
- BIS, Denial of export privileges, November 11
- EOP, National emergency with respect to the threat From securities investments from China, November 10
- Treasury/OFAC, Lebanon sanctions designations, November 9
Newly-introduced legislation
House
- H.R.9277 (Khanna, D-CA) Would ban U.S. gasoline exports when prices remain $3.12 or higher across a previous 7 day period continuing until prices drop below $3.12 for 7 days.
Upcoming Congressional hearings
House
- Foreign Affairs: U.S. assistance addressing instability/conflict in Africa, November 15, 10:00am
- Foreign Affairs: Erosion of democracy and rule of law in Hungary, November 15, 12:00pm
- Financial Services: U.S. capital flows to foreign rivals/adversaries, November 15, 2:00pm
- Foreign Affairs: Russia’s waning global influence, November 16, 10:00am
- Foreign Affairs: U.S. strategy toward Sub-Saharan Africa, November 17, 10:00am
Senate
- Agriculture: Farm Bill 2023: Rural Development and Energy Programs, November 15, 10:00am
- Foreign Relations: U.S. policy in the caucasus, November 16, 10:00am
WHO’S WHO
Arrivals
- Anjana Rajan, Assistant National Cyber Director for Technology Security
- Caitlin Klevorick, DFC Vice President for External Affairs
- Dimitri Kusnezov, DHS Under Secretary for Science and Technology
- Justin McFarlin, Deputy Assistant Secretary of Defense for Industrial Base Development
- Raquel Silva, USTR Director for Colombia and Chile
Want more scoops on personnel moves? Find the most recent Who’s Who here.
UPCOMING EVENTS
- ASEAN Leaders’ summit (Phnom Penh), November 10-13
- B20 &L20 summits (Bali), November 13-14
- Congress is in session, November 14-18
- Codex Executive Commission (Rome), November 14-18
- World Food Programme Executive Board (Rome), November 14-18
- APEC Leaders’ Week (Bangkok), November 14-20
- G20 Summit (Bali), November 15-16
- EU Foreign Affairs Council (Brussels), November 17
- IAEA Board of Governors (Vienna), November 17-18
- OECD Ministerial (Luxembourg), November 17-18
- Kazakh elections, November 20
- Nepali elections, November 20
- AU Summit on Industrialization and Economic Diversification (Niamey, Niger), November 20-25
- Soccer World Cup, November 20-December 18
Looking farther ahead? Find the most recent full international events calendar here.