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International Issues Update

By December 16, 2022No Comments

ON OUR DESKS

  • Forecasting outlook for U.S. sanctions on China
  • Mapping key embassy contacts for client outreach
  • Developing engagement strategies for new Congress
  • Preparing client submissions for USTR Special 301 review (Note: USTR today extended certain tariff exclusions to align with the ongoing review)

These are just examples of client service. 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

WIBC discussions are on hiatus for the remainder of 2022.

January 2023 schedule of events:

  • January 4: Treasury Deputy Assistant Secretary for International Development Finance and Policy Mathew Haarsager, Priorities for multilateral development bank reform and its effects on international business
  • January 12: State Principal Deputy Assistant Secretary for European and Eurasian Affairs Dereck Hogan, U.S.-European political and economic relations
  • January 19: House Ways and Means Committee Republican Chief Trade Counsel Joshua Snead, Trade agenda for the 118th Congress
  • January 24: EU Delegation Head of Trade Michael Margherita, U.S.-EU trade opportunities and challenges, including priorities for the Trade and Technology Council

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

YOU NEED TO KNOW

China

Commerce on December 15 added China’s top computer memory company Yangtze Memory Technologies Corp (YMTC) and 35 smaller technology firms to its “entity list,” barring the firms from receiving any U.S. items and building on Commerce’s October action prohibiting U.S. exports to and support for Chinese manufacturing of advanced semiconductors.

Media reports indicate that Japan and the Netherlands will join U.S. controls, cutting China off from most advanced semiconductor manufacturing equipment. China has filed a case with the World Trade Organization opposing the semiconductor controls, but this is expected to have little to no impact. As China’s ability to directly retaliate for these controls with similar measures is limited, retaliation may come in other areas.

As part of the United States’ ongoing efforts to counter China, the State Department launched on Friday its new Office of China Coordination, also known as “China House.” The office, led by Deputy Assistant Secretary Rick Waters and replacing the China Desk in State’s Bureau of East Asian and Pacific Affairs, will  have three sections: traditional bilateral affairs, strategic communications; and a “global” team, focusing on Chinese activity beyond China.

Contact: Pat Sheehy, Ethan Knecht

Congress

With time ticking in its lame duck session, Congress passed the National Defense Authorization Act (NDAA), as well as a week-long extension of current appropriations – funding the government through December 23. House Appropriations Chair Rosa DeLauro (D-CT) plans to introduce the negotiated omnibus spending package on December 19.

Key trade programs including the Generalized System of Preferences (GSP) and Miscellaneous Tariff Bill (MTB) remain tied up as the House and Senate focus on priorities with little time remaining in the legislative calendar. House Ways and Means leaders from both parties have said GSP and MTB are bipartisan priorities that have some hope of passing, though opinions vary as to whether chances are better with GSP and MTB alone or wrapped into a larger vehicle. Senators Portman (R-OH) and Coons (D-CT) earlier in December outlined a potential “grand bargain” on trade, but the likelihood of passage appears slim.

Contact: Chris Benscher

U.S.-Africa Leaders Summit

President Biden hosted December 13-15 in Washington counterparts from forty-nine African nations and the African Union, with the Summit program addressing a wide range of issues from trade and investment to food security, civil society and governance.

U.S. announcements for the Summit included $2.5 billion in emergency aid and food security assistance, more than $15 billion in trade and business initiatives, a partnership to support African trade institutions, more than $1 billion in Export-Import Bank financing, and close to $1 billion in Trade and Development Agency initiatives. The United States also committed to support the African Union’s inclusion in the G20 group of nations. Biden also announced that he would travel to sub-Saharan Africa next year.

Contact: Pat Sheehy

Quick takes

  • Current Global AIDS Coordinator Ambassador John Nkengasong is expected to lead the State Department’s newly announced Bureau of Global Health Security and Diplomacy, which will comprise the existing Office of International Health and Biodefense, the Coordinator for Global COVID-19 Response and Health Security, and the Office of the U.S. Global AIDS Coordinator.
  • COVID continued to surge in China as the government loosened control measures amid slowed consumer spending and investment, rising inflation, and stagnating industrial production. China delayed its annual Central Economic Work Conference where it had been expected to announce stimulus measures.
  • After Poland dropped objections, the EU Council Summit approved a global minimum corporate tax plan, 18 billion euros in financing for Ukraine, and a ninth sanctions package on Russia. Despite the EU’s approval, Congressional Republicans warned Treasury Secretary Yellen that the administration does not have the authority to agree to the global plan without Congressional approval.
  • Seventeen stalled U.S. ambassadorial nominations (including to key countries like Brazil, Georgia, and the Czech Republic) were confirmed by the Senate, along with Treasury Under Secretary for International Affairs Jay Curtis Shambaugh.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly-introduced legislation

House

  • H.R.9606 (Wilson, R-SC) Requires the Secretary of State to review the eligibility of certain Iranian officials to enter the United States
  • H.R.9598 (Smith, R-NJ) Requires a whole-of-government strategy to counter China
  • H.R.9596 (Pfluger, R-TX) Would require the Treasury Department to apply sanction determinations for additional technology companies who help the CCP undermine human rights (specifically Hikvision, Dahua, Tiandy, and BGI)
  • H.Res.1520 (Brady, R-TX) Would urge USTR negotiators to begin talks on a “new environmental goods agreement with updated product coverage
  • H.R.9561 (Smith, R-NJ) Requires the President to remove the privileged status from the Hong Kong Economic and Trade Office if Hong Kong loses autonomy from China
  • H.R.9560 (Sherman, D-CA) Would require the President to prohibit the export of petroleum products during periods of high oil prices
  • H.R.9555 (Levin, D-CA) Would create a national zero-emission vehicle standard
  • H.R.9554 (LaMalfa, R-CA) Would prevent the use of federal funds to negotiate or contribute to international agreements that provide for “loss and damage” climate funds
  • H.R.9545 (Espaillat, D-NY) Would reinstate the ban on the exports of oil and gas produced in the United States
  • H.R.9500 (Castro, D-TX) Would redirect USAID towards evidence-driven foreign aid models that leverage the power of the private sector
  • H.R.9490 (Gallagher, R-WI) Would impose sanctions against foreign telecommunications companies engaged in economic/industrial espionage against U.S. persons

​​Senate

  • S.5265 (Rubio, R-FL) Would require the Treasury Department to apply sanction determinations for additional technology companies who help the CCP undermine human rights (specifically Hikvision, Dahua, Tiandy, and BGI)
  • S.5269 (Hoeven, R-ND) Would prohibit the Department of Defense from requiring contractors to provide greenhouse gas emission disclosures
  • S.5273 (Rubio, R-FL) Would expand sanctions against Chinese entities for human rights violations
  • S.5263 (Merkley, D-OR) Would create a national zero-emission vehicle standard
  • S.5253 (Rubio, R-FL) Requires the President to remove the privileged status from the Hong Kong Economic and Trade Office if Hong Kong loses autonomy from China
  • S.5239 (Cotton, R-AR) Would impose sanctions against foreign telecommunications companies engaged in economic/industrial espionage against U.S. persons
  • S.5232 (Cornyn, R-TX) Would impose sanctions against those who trade with Russia in gold

WHO’S WHO

Arrivals

  • Devin Lynch, Director for Supply Chain and Technology Security
  • Giannangeli Leganski, Energy & Commerce Professional Staff Member
  • Laurel Blatchford, Treasury Department Director of IRA Implementation
  • Randall Oliver, USTR Director for Canada
  • Steffanie Bezruki, Secretary of Agriculture Chief of Staff

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

UPCOMING EVENTS

  • Tunisian Legislative Elections, December 17
  • EU Transport, Telecom, and Energy Council (Brussels), Brussels
  • EU Committee of Permanent Representatives (Brussels), December 20

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

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