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Christina Rodas

Christina Rodas
In

International Issues Update

ON OUR DESKS

  • Preparing client submissions for USTR review of Section 301 China tariffs
  • Analyzing lameduck agenda and new Congress’ impact on client priorities
  • Advising on U.S. visa landscape and procedures for business travel

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 28: Deputy Assistant Secretary of Commerce for Export Administration Matthew Borman, export controls – priorities and the road ahead

Up next: Register for upcoming WIBC discussions here

  • December 15: Ambassador of Australia Arthur Sinodinos, U.S.-Australia cooperation on political and economic issues (please note this will be the last WIBC discussion of 2022)

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

YOU NEED TO KNOW

Europe

During a state visit to Washington November 29-December 2, French President Emmanuel Macron pressed Europe’s significant concerns over electric vehicle tax credits in the Inflation Reduction Act, which he repeatedly described as “super aggressive” toward European automotive industry companies. during a state visit to Washington. 

During a December 1 joint press conference, President Biden referred to “glitches” in the law’s drafting, saying it was not intended to exclude allies and that “tweaks” can be made to “make it easier for European countries to participate…” France’s finance minister hailed Biden’s remarks as “a major breakthrough.” The issue is also likely to be raised during the December 5 meeting of the U.S.-EU Trade and Technology Council (TTC), to be held in College Park.

Presidents Macron and Biden also reaffirmed support for Ukraine. Asked if he would be speaking to Russian President Vladimir Putin, President Biden said he has no immediate plans to contact Putin but would be “prepared to speak” if Putin were “looking for a way to end the war.” 

Contact: Steve Ziehm

Congress

With little time remaining before the new Congress is sworn in on January 3, priorities in the lame duck session of the current Congress include must-pass government funding and the National Defense Authorization Act (NDAA). Without new authorization or a continuing resolution, government funding will lapse December 16. Some Congressional Republicans are pushing for an extension into early 2023, when their party will take control of the House. 

Congress also continues to debate defense spending provisions aimed at barring federal contractors from using (or partnering with companies who use) Chinese-made semiconductors (in the Senate version of the bill) and sourcing from any company doing business in Russia (House amendment 304). Conference negotiators are expected to conclude a final version of the bill over the coming week.

In other Congressional news, the Senate voted December 1 (following passage in the House) to impose a labor agreement averting a potential major rail strike. Other items on the lameduck agenda include same-sex marriage and measures impacting Congress’ electoral count. Impactful pending legislation for business includes green card access for legal immigrants and long-stalled trade measures. Prospects for full passage of bills outside must-pass spending are slim. 

Contact: Chris Benscher

China

In the midst of unusually widespread and high-profile public protests, China issued new vaccination targets, eased lockdowns, loosened quarantine policies, and attempted to downplay the severity of the omicron strain this week. While far from indicating any immediate shift in China’s zero COVID policy, these moves may signal some softening.

Senior U.S. officials continued to emphasize the United States’ stance on bolstering U.S. competitiveness and balancing China, particularly in computing technologies , biotechnologies and biomanufacturing, and clean energy as laid out in a November 30 speech by Secretary of Commerce Gina Raimondo. Raimondo also highlighted increased scrutiny of U.S. investment in China as a major priority. Treasury Secretary Janet Yellen on November 30 warned that business should prepare for increased geopolitical risks arising out of competition with China, despite her hope that the United States and China will maintain strong ties “when it comes to mutually beneficial trade and investment.”

National Security Advisor Jake Sullivan expressed confidence this week that allies will adopt measures similar to U.S. controls on Chinese semiconductors. The Commerce Department is accepting until January 17 public comments on export controls cooperation with Japan and may increase consultations with allies over the coming year, including with Korea and Japan. Commerce Senior Advisor for China Elizabeth Economy noted during November 29 remarks at the Wilson Center that South Korean officials have expressed frustration over a lack of consultation and advance warning on U.S. export controls. 

Contact: Ethan Knecht, Pat Sheehy

Latin America

Negotiations between the Venezuelan opposition and the Maduro regime restarted this week in Mexico, with the two sides agreeing to a “social accord” on education, health, food security, flood response and electricity programs. Discussions continue on ensuring the 2024 elections are free and fair. 

In response, the U.S. government issued a limited license to Chevron to resume oil drilling in Venezuela. The license does not authorize payment of taxes or royalties to the Government of Venezuela. President Maduro called for the United States to fully lift all sanctions on the oil sector.

Visiting Mexico City this week, U.S. Secretary of Agriculture Tom Vilsack and U.S. Trade Representative Katherine Tai raised major trade issues and irritants, including Mexico’s pending ban on genetically-modified corn, as well as labor, energy, and environment. Mexico proposed a working group to resolve energy issues before the North American Leaders Summit scheduled for early January.

Other significant recent trade actions in Latin America included Uruguay applying to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Ecuador exploring a free trade agreement with Canada. 

Contact: Ethan Knecht, Pat Sheehy

Quick takes

  • Democrats in the House unanimously elected Representative Hakeem Jeffries (D-NY) as  leader to succeed Speaker Nancy Pelosi for the 118th Congress. The caucus also elected Representative Katherine Clark as Democratic Whip, Pete Aquilar as Democratic Caucus Chair, and James Clyburn to the new position of Democratic Assistant Leader (4th ranked position). 
  • Congressman Steve Scalise (R-LA), expected to be elected Majority Whip, released the 2023 House calendar.  
  • The European Commission released new proposed mandatory targets for recycled content in plastic packaging and voluntary use of reusable packaging. The proposal calls for all packaging on the EU market to be recyclable by 2030.
  • The United States announced new global health security partnerships with Ghana, Guatemala, Mozambique, the Philippines, Zambia, and Ukraine. The administration also released a report on Progress and Impact of U.S. Government Investments in Global Health Security and called for Congress to increase funding for the World Bank Pandemic Fund and global health security partnerships.
  • The EU and G7 will ban beginning December 5 seaborne imports of Russian crude oil and impose a host of other new limitations on Europeans shipping Russian oil worldwide unless sold at or below a price cap, reportedly $60 a barrel. The G7 countries will impose their own price cap, as well. 

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly-introduced legislation

House

  • H.R.9385 (Gallagher, R-WI) Restricts tax-exempt entities from investing in Chinese companies.
  • H.R.9395 (Pocan, D-WI) Requires new foreign agricultural investors disclosures. 
  • H.R.9374 (Meeks, D-NY) Requires the State Department to issue a strategic plan to counter Russian influence in Africa, Latin America, Middle East, and other regions as appropriate.
  • H.R.9364 (Bass, D-CA) Would promote the African Continental Free Trade Area.
  • H.J.Res.100 (Payne, D-NJ) Provides a resolution to the railroad disputes.

Senate

  • S.5178 (Hawley, R-MO) Restricts tax-exempt entities from investing in Chinese companies.
  • S.5161 (Menendez, D-NJ) Would exempt international goods already in transit from surprise tariffs.
  • S.5154 (Van Hollen, D-MD) Would promote the African Continental Free Trade Area.

Upcoming Congressional hearings 

House

Senate

WHO’S WHO

Arrivals

  • Abby Finkenauer, State Department Special Envoy for Global Youth Issues
  • Jody Myers, U.S. International Development Finance Corporation Chief Risk Officer
  • Rheanne Wirkkala, Assistant Secretary of Defense for Legislative Affairs

Departures

  • David Lipton, Counselor to the Treasury Secretary for International Affairs
  • John Morton, Counselor to the Treasury Secretary for Climate
  • Sameera Fazili, National Economic Council Deputy Director
  • Peter Harrell, NSC Senior Director for International Economics

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

UPCOMING EVENTS

  • Mercosur leaders summit (Montevideo, Uruguay), December 5-6
  • U.S-EU Trade and Technology Council (Washington), December 5
  • Eurogroup Ministers (Brussels), December 5
  • Mercosur Leaders Summit (Montevideo), December 5-6
  • EU Transport, Telecom, and Energy Council (Brussels), December 5-6
  • APEC Informal Senior Officials’ Meeting (ISOM) (Honolulu), December 5-7
  • FAO Council (Rome), 5-9
  • EU Western Balkans Summit (Tirana), December 6
  • ILO Asia and the Pacific Regional Meeting (Singapore), December 6-9
  • EU Committee of Permanent Representatives (Brussels), December 7
  • UN Environment Programme Committee of Permanent Reps (Nairobi), December 8

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

Christina Rodas
In

International Issues Update

ON OUR DESKS

  • Participated in State Department listening session on upcoming UNEA plastics treaty negotiations
  • Assisted with company meetings with foreign embassies
  • Advised on the outlook of U.S-China relations

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 16: Assistant Secretary of State for Energy Resources and former U.S. Ambassador to Ukraine Geoffrey Pyatt, International energy policy

Up next: Register for upcoming WIBC discussions here

  • November 22: Deputy Assistant Secretary of State for India Nancy Izzo Jackson, the Administration’s economic and political priorities in India
  • November 28: Deputy Assistant Secretary of Commerce for Export Administration Matthew Borman, export controls – priorities and the road ahead

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

YOU NEED TO KNOW

China 

President Biden met with Chinese President Xi for three hours on the sidelines of the G20 this week to discuss managing competition between the two countries. According to the U.S. readout, the two leaders talked about their differences on China’s non-market economic practices, Taiwan, Xinjiang and Hong Kong, and Russia’s war in Ukraine, while the two sides agreed to reinvigorate collaboration on “climate change, global macroeconomic stability including debt relief, health security, and global food security.” Beijing’s readout, by contrast, extensively reiterated the PRC’s position on Taiwan, downplayed any competition that could impede “growing China-U.S. relations,” and protested U.S. trade and technology actions against China. 

Following the meeting between the two presidents, the White House announced that Secretary of State Blinken will travel to China in early 2023 to follow up on the conversation. Despite this renewed engagement, two reports were issued this week that cast doubt on prospects for U.S.-China rapprochement.

The U.S.-China Economic And Security Review Commission (USCC) released its annual report to Congress on November 15. The Executive Summary of the report highlighted 10 high-priority policy recommendations for Congress, including: investigating and possibly revoking China’s Permanent Normal Trade Relations (PNTR) status, creating a new EOP office “to ensure resilient U.S. supply chains and robust domestic capabilities,” and launching a new interagency committee to develop plans for the imposition of sanctions in event of a conflict between Taiwan and China. 

The separate Congressional-Executive Commission on China (CECC), chaired by U.S. Senator Jeff Merkley (D-OR) and U.S. Representative James P. McGovern (D-MA), released its annual report on human rights conditions and rule of law developments in the PRC. The report highlights China’s continued trend towards repression of civil rights and widespread abuse of minority groups. 

Contact: Pat Sheehy, Ethan Knecht

G20 

Leaders from the G20 held their annual summit from November 15-16 in Bali, Indonesia. The Indonesian government had originally intended for its host year to feature pandemic and economic recovery under the theme of “Recover Together, Recover Stronger.” This was overshadowed by Russia’s ongoing war in Ukraine and the resulting shocks to global food and energy security. Participants issued a statement following the meeting highlighting these issues and noting that “most members strongly condemned the war in Ukraine.”  The Leaders’ Declaration noted that while “the G20 is not the forum to resolve security issues, we acknowledge that security issues can have significant consequences for the global economy.” 

On the sidelines of the G20, President Biden and his EU counterparts held a meeting and announced progress on their previously announced Partnership for Global Infrastructure and Investment (PGII). President Biden announced a series of updates on the initiative and new projects related to digital infrastructure in the Pacific, critical mineral supply chains in Brazil, and health infrastructure in India. The United States, EU, and Indonesia also announced a Just Energy Transition Partnership (JETP) “to mobilize an initial $20 billion in public and private financing over a three-to-five-year period” to reduce greenhouse gas emissions and support communities impacted by climate change. 

Contact: Pat Sheehy, Ethan Knecht

COP 27 

The 2022 United Nations Climate Change Conference of the Parties (COP27) released its 20-page draft agreement covering everything from cutting greenhouse gas emissions (mitigation) to human rights, technology and food. The most contentious issues remaining – how to stay within the limit of a 1.5C global temperature rise and how to help finance poor countries to adapt to the effects of the climate crisis – are missing from the document.

After there was no agreement on the last day of COP27, Egyptian Foreign Minister Sameh Shoukry, who chairs COP27, reportedly announced that negotiations would extend another day to end on Saturday, November 19.   On November 18, the EU offered to tie disaster funding with emissions reductions. New language was also proposed by India and generally backed by island nations, the United States and the EU that would call for a phase-down of all fossil fuels — not just coal but also oil and gas. “Natural gas and oil also lead to emission of greenhouse gasses. Making only one fuel the villain is not right,” according to a source in India’s delegation. 

Initiatives by like minded coalitions were announced throughout the week, including:

  • The United States launched the Net-Zero Government Initiative to achieve net-zero emissions from national government operations by no later than 2050. So far, 18 countries have signed onto the initiative.
  • Ministers from Brazil, Indonesia and the Democratic Republic of Congo signed a cooperation agreement to establish a funding mechanism to protect their rainforests while supporting the economies of their forest communities. 

Contact: Chris Benscher

Quick takes

  • Australia announced that the first in-person negotiating round for the Indo-Pacific Economic Framework (IPEF) will take place in Brisbane from December 10-15, 2022.
  • The U.S. International Trade Commission (USITC) issued its report cataloging the distributional effects of trade and trade policy on underrepresented and underserved communities on November 14.  As requested by USTR, the report reviews research on the effects of trade liberalization on various groups by education and skill levels, gender, and race/ethnicity, and notes a gap in literature with regard to trade in services.
  • The Black Sea Grain Initiative was renewed for four months on November 17. The agreement was renewed without changes. Russia has sought to include the export of ammonia piped to Black Sea ports as part of the next renewal.
  • On separate trips this week, State Department Under Secretary Victoria Nuland and Assistant Secretary Brian Nichols traveled to Colombia, Jamaica, Ecuador, Uruguay, and Chile for bilateral dialogues. In the latter four countries, U.S. officials discussed trade and investment issues.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly-introduced legislation

House

  • H.R.9340 (Joyce, R-OH) Would establish the U.S. Foundation for International Conservation to promote long-term management of protected and conserved areas.
  • H.R.9322 (Thomas, D-NY) Would authorize normal trade relations treatment for the products of Kazakhstan, Uzbekistan, and Tajikistan.
  • H.R.9292 (French, R-AR) Would provide pilot authority for the United States to waive voice and vote requirements in international financial institutions. 

Senate

  • S.5134 (Coons, D-DE) Would establish the U.S. Foundation for International Conservation to promote long-term management of protected and conserved areas.
  • S.5122 (Rubio, R-FL) Would provide greater scrutiny to the consideration of visa applications for Chinese Communist Party members.
  • S.5090 (Fischer, R-NE) Would require the Administrator of the Maritime Administration to publicly report cargo preference data annually.
  • S.5082 (Hawley, R-MO) Would impose sanctions against General Secretary Xi Jinping and other senior officials of the Chinese Communist Party complicit in the perpetration of genocide and other crimes against humanity against Uyghurs and other ethnic minorities in the Xinjiang Uyghur Autonomous Region.

WHO’S WHO

Arrivals

  • Alison MacDonald, Chief of Staff for Senator Shaheen (D-NH) 
  • Chris Dodd, State Department Special Presidential Adviser for the Americas
  • Dean Karlan, USAID Chief Economist
  • John Kraus, HHS DAS for Public Affairs and Public Health
  • Monde Muyangwa, USAID Assistant Administrator for Africa
  • Ron Storhaug, Treasury DAS for Tax and Budget
  • Tressa Guenov, DOD Acting PDAS for International Security Affairs

Departures

  • Chris Magnus, CBP Commissioner

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

UPCOMING EVENTS

  • FIFA World Cup opens (Qatar), November 20
  • Kazakh Presidential elections, November 20
  • Pacific Alliance Summit (Mexico City), November 23-25

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

Christina Rodas
In

International Issues Update

ON OUR DESKS

  • Preparing comments for USTR’s 4-year review of Section 301 China tariffs
  • Assisted with export licensing to China
  • Advising on EU trade restrictions on Russia

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 2: Deputy Assistant Secretary of Commerce for the Western Hemisphere Ian Saunders, U.S. competitiveness strategies and economic priorities in the Americas 

Up next: Register for upcoming WIBC discussions here

  • November 9: Deputy Assistant Secretary of State for Trade Policy and Negotiations Tony Fernandes, Global trade policy and negotiations affecting international business
  • November 16: Assistant Secretary of State for Energy Resources and former U.S. Ambassador to Ukraine Geoffrey Pyatt, International energy policy

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

YOU NEED TO KNOW

China Tariffs, Taiwan, IPEF

The U.S. Trade Representative’s Office (USTR) released a set of questions this week to guide private sector submissions in response to the administration’s four-year review of the Section 301 China tariffs.  The questions are separated into three sections and invite views concerning the Section 301 actions at an economy wide level, at a sector/industry level, and at the level of tariff headings.   USTR’s comment portal opens on November 15 and will close on January 17, 2023.  USTR has not yet announced its intentions with regard to currently-effective Section 301 tariff exclusions which are set to expire by the end of 2022.   

On November 3, USTR announced that it will hold in-person conceptual discussions on the U.S.-Taiwan Initiative on 21st-Century Trade on November 8-9, to be led by Assistant U.S. Trade Representative Terry McCartin.  Launched in June 2022, the U.S.-Taiwan trade discussions parallel those being held under the Indo-Pacific Economic Framework (IPEF).   The first round of IPEF negotiations will take place in Australia in December. 

Contact: Steve Ziehm

Brazil, Venezuela

In the runoff presidential election in Brazil, former leftist president Lula da Silva narrowly beat the incumbent, Jair Bolsonaro. Although Bolsonaro has not formally conceded the election, a coup attempt appears unlikely as he discouraged his supporters from highly disruptive or violent protests, resulting in the protests losing steam and the transition officially beginning. 

President Biden swiftly recognized Lula’s election, promising to cooperate with the president-elect on “climate change, safeguarding food security, promoting inclusion and democracy, and managing regional migration.” Leaders from the European Union also welcomed his election, indicating that Lula’s administration’s stronger environmental commitments could revive the floundering EU-Mercosur free trade agreement. Chinese President Xi congratulated Lula, suggesting that Chinese trade and investment would grow under his administration and that the two presidents would take relations “to a new level.” 

Further north in Venezuela, the president of Colombia traveled to Caracas to meet with President Maduro, further demonstrating the shift in Colombian-Venezuelan relations under the Petro administration. The two presidents discussed trade, human rights, and protecting the Amazon rainforest. After the meeting, Venezuela announced that it would rejoin the Andean Community of Nations regional bloc. While the State Department did not condemn the meeting, it “urged Colombia … to advocate for a democratic and prosperous hemisphere… and to hold accountable governments that have violated the democratic rights and the democratic norms.” 

Contact: Ethan Knecht

Russia 

Foreign ministers from the G7 group of countries gathered in Munster, Germany for consultations on the war in Ukraine on November 3 and 4. The ministers announced a coordination mechanism to help Ukraine repair critical energy and water infrastructure. The participants also committed to a fixed price for a sanctions based price cap on Russian oil exports. The fixed price is intended to provide predictability and will be announced before a December 5 entry into force. The attendees also discussed global security issues, including food security, recent destabilizing actions by Iran and North Korea, and Indo-Pacific security.

Separately, Russia destabilized grain markets when it abruptly withdrew from, and then rejoined two days later, the Black Sea grain deal negotiated with Ukraine, Turkey, and the United Nations. The deal allows for the safe export of Ukrainian grain in designated maritime corridors, primarily for shipment to lower and middle income countries. 

Contact: Pat Sheehy

Quick takes

  • Commerce’s Bureau of Industry and Security (BIS) is seeking global support for export controls on China’s advanced semiconductor production. Senior BIS and NSC officials will hold discussions this month with the Netherlands urging the country to restrict the transfer of semiconductor manufacturing goods and technology to China. 
  • In a preview of increased congressional oversight of BIS, Foreign Affairs Committee senior Republican Michael McCaul (R-TX) asked the Commerce Secretary in a letter to provide licensing data on the latest export control rules that prevent China from accessing high-end semiconductor technologies. 
  • The Defense Counterintelligence and Security Agency released a report on critical threats to U.S. technology on November 3. The report details how China, Russia, and other foreign parties seek to obtain sensitive U.S. technologies through illicit means. 
  • Ahead of COP 27, the OECD released a report on the increased use of carbon pricing, focused on 71 countries. The State Department released a progress update on the 2022 Climate Adaptation and Resilience Plan (CARP) focused on five long-term vulnerabilities to climate hazards (including workforce mobility, emergency planning, and supply chains and procurement). 
  • In multiple efforts to promote U.S. agricultural trade, Secretary Vilsack, Senator Grassley, and Representative Kind (D-WI) spoke out against Mexico’s planned ban on GMO corn imports from the United States. Seven House Agriculture Committee members also introduced legislation that doubles funding for two Agricultural Department export promotion programs.  
  • President Biden announced a decision to remove Burkina Faso as a beneficiary under the African Growth and Opportunity Act (AGOA) as of January 1, 2023. Citing unconstitutional changes in the government, U.S. Trade Representative KatherineTai noted that USTR will provide benchmarks for a pathway for Burkina Faso to be reinstated to the tariff preference program. 

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly-introduced legislation

House

  • H.R.9256 (Gottheimer, D-NJ) Would improve U.S.-Israeli efforts to counter attack drones.
  • H.R.9250 (Plaskett, D-VI) Would modify IRS source rules to establish territorial tax parity for personal property sales.
  • H.R.9244 (Costa, D-CA) Would double funding for two U.S. agriculture export programs.
  • H.R.9241 (Banks, R-IN) Would transfer export control authority from Commerce to the Defense Department.

WHO’S WHO

Arrivals

  • Alexandra Teitz, Senate Environment and Public Works Committee Chief Counsel
  • Julie Kozack, IMF ​​Director for Strategic Communications
  • Keri Lowry, Millennium Challenge Corporation Chief of Staff
  • Neale Mahoney, NEC Senior Policy Advisor for Economic Policy
  • Robert McIntosh, Congressman Pete Sessions (R-TX) Chief of Staff

Departures

  • Sahar Hafeez, NSC Director for International Economics

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

UPCOMING EVENTS

  • Deputy Secretary of the Treasury Wally Adeyemo to consult with allies on sanctions against Russia (Paris, London) November 7-9
  • UNFCCC COP 27 (Sharm El Sheikh, Egypt), November 7-18
  • U.S. midterm elections, November 8
  • ASEAN Leaders’ Summit (Phnom Penh), November 10-13

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

Christina Rodas
In

International Issues Update

ON OUR DESKS

  • Forecasting midterm election implications
  • Advising clients on export controls
  • Researching Ukraine reconstruction funding
  • Preparing comments on USTR China tariff review
  • Preparing comments on FDA definition of “healthy”

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:

  • 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

  • November 2: Deputy Assistant Secretary of Commerce for the Western Hemisphere Ian Saunders, U.S. competitiveness strategies and economic priorities in the Americas
  • November 9: Deputy Assistant Secretary of State for Trade Policy and Negotiations Tony Fernandes, Global trade policy and negotiations affecting international business
  • November 16: Assistant Secretary of State for Energy Resources and former U.S. Ambassador to Ukraine Geoffrey Pyatt, International energy policy

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

YOU NEED TO KNOW

China

Chinese President Xi Jinping elevated his closest allies to the Chinese Communist Party (CCP) Politburo Standing Committee (PBSC), filling it for the first time in more than three decades completely with allies of the General Secretary and reinforcing Xi’s unprecedented control over the party.

In an unusually dramatic moment, former President Hu Jintao was abruptly removed from the party congress’ closing ceremony, with government media claiming Hu was in poor health. However, many analysts speculated that the move was a deliberate demonstration of Xi’s total control of the party and rejection of the Hu administration’s more market-oriented economic approaches.

Current PRC ambassador to Washington Qin Gang will reportedly be promoted to Foreign Minister after the National People’s Congress in the spring. This, along with current Foreign Minister Wang Yi’s elevation to the Politburo, signals likely continuation of China’s aggressive foreign policy.

In a new National Defense Strategy, the United States characterized the PRC’s “coercive and increasingly aggressive” actions in the Indo-Pacific as “authoritarian” and said they present the United States’ most comprehensive and serious defense challenge. The strategy says the United States will prioritize countering China’s influence in the Indo-Pacific, followed by “the Russia challenge in Europe,” in a notable China-focused shift from its 2018 strategy that more blandly identified the “reemergence of long-term, strategic competition” with Russia and China as the largest threat to U.S. global leadership. 

Contact: Pat Sheehy, Ethan Knecht

Ukraine 

In an October 27 address, Russian President Vladimir Putin condemned what he called the West’s abandonment of traditional values and repeated claims that Western values prompted his invasion of Ukraine. He reiterated claims that Ukraine is preparing to use a dirty bomb, a tactic U.S. and allied analysts believes is intended to provide cover should Russia use a small nuclear device.

The October 25 EU and G7 conference on Ukraine reconstruction focused on funding structure and governance, rather than specific donor pledges (expected to total in the tens of billions).. The conference envisioned allocation of reconstruction funds will be overseen by mixed boards of donor country representatives, subject matter experts, and Ukrainian representatives. With an October 28 package valued at $275 million, U.S. defense funding for Ukraine reached $18.5 billion allocated since 2021.

Multiple firms announced activity related to divestment from Russia this past week. Mercedes-Benz will exit after selling its in-country assets to local investors. German software firm SAP is reportedly unable to leave Russia by its announced years-end deadline as it is unable to find buyers to maintain certain service contracts. The main delay is reportedly potential Russian legal liability for SAP senior in-country employees for failing to fulfill contracts.

Contact: Pat Sheehy

Quick takes

  • The United States and the EU launched a U.S.-EU Task Force on the Inflation Reduction Act to address European concerns around the implementation of the act, including support for electrical vehicles.
  • Honolulu, Palm Springs, Detroit, and Seattle were named as host cities for the 2023 Asia-Pacific Economic Cooperation (APEC) Senior Officials’ and Ministerial meetings. The United States has not announced the host city for the November 2023  APEC Leaders’ Meeting. 
  • In a new Executive Order and other statements, the United States broadened sanctions priorities and authorities for Nicaragua, including new sanctions on the Nicaraguan gold sector.
  • Congressional and USTR delegations traveled to South America this week to discuss trade and investment, including in Argentina, Columbia Ecuador, and Colombia.  
  • The United States is evaluating possible penalties on Saudi Arabia for supporting Russia’s war in Ukraine by manipulating global oil prices, according to comments made by NSC spokesperson John Kirby. Kirby noted that any action will be held until Congress returns. 

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly-introduced legislation

House

  • H.R.9211 (Espaillat, D-NY) Would establish a lending program to develop sustainable and equitable growth and energy security in Latin America and the Caribbean.
  • H.R.9206 (Castro, D-TX) Would provide law enforcement authority to the US International Development Finance Corporation’s inspector general.
  • H.R.9203 (Banks, R-IN) Would impose sanctions on the Supreme Leader and President of Iran and their offices for human rights abuses and support for terrorism.

WHO’S WHO

Arrivals

  • Bart Meroney, Acting Deputy Assistant Secretary of Commerce for Manufacturing
  • Caitlin Durkovich, White House Deputy Homeland Security Adviser for Resilience
  • Dean Thompson, U.S. Ambassador to Nepal
  • Elizabeth Jones, U.S. Charge d’Affaires to India
  • Jason Tama, NSC Senior Director for Resilience
  • Shefali Razdan Duggal, U.S. Ambassador to the Netherlands

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

UPCOMING EVENTS

  • Brazil presidential elections run-off, October 30
  • Denmark parliamentary elections, November 1
  • COP27 (Sharm El Sheikh), November 6
  • U.S. general election, November 8

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

Christina Rodas
In

International Issues Update

ON OUR DESKS

  • Provided information on the impact of port delays on supply chains
  • Conducted analysis on the state-level consideration of a low carbon fuel standard
  • Advised on EU energy policy and Ukraine reconstruction funding

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:

  • 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

Up next: Register for upcoming WIBC discussions here

  • October 27: Deputy Head of Mission of the British Embassy James Roscoe, the United Kingdom’s economic and political relationship with the U.S.

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

YOU NEED TO KNOW

China 

The Chinese Communist Party (CCP) opened its 20th Party Congress on October 16, with General Secretary Xi Jinping solidifying his control on the CCP and prioritizing political stability and national security over political and economic reform.  Xi’s report for the opening of the Congress refrained from mentioning “political reform” for the first time since 1987. Xi’s defense of China’s “dynamic zero-COVID” strategy suggests that the country is unlikely to deviate from the disruptive policy in the near-term, while his remarks also reiterated his intent to take control of Taiwan by force if necessary. 

At the end of the Congress, on October 23, the new Central Committee will reveal the Politburo Standing Committee (the seven most powerful leaders in the country). While it is not certain who will make the next PBSC, there are indications that political advisor Ding Xuexiang or Shanghai Party Secretary Li Qiang may be the next Premier, signaling Xi’s control of the party and the marginalization of factions that prioritize economic reform and growth.

China’s Ministry of Industry and Information Technology (MIIT) has separately begun holding consultations with PRC semiconductor and supercomputer firms to determine the impact of broad U.S. export controls imposed on these sectors by the Commerce Department’s Bureau of Industry and Security (BIS). The controls bar a swathe of U.S. exports to PRC computing firms and sharply curtail U.S. persons’ ability to support Chinese production of advanced semiconductors and computers. This restriction on support has reportedly caused a wave of resignations of U.S. personnel in senior positions within Chinese firms. Any PRC response will likely be delayed until the conclusion of the Congress. 

U.S. Commerce Department personnel confirmed in a conference call with industry that the purpose of the controls reflect a shift in U.S. policy away from maintaining a relative technological advantage over competitors and towards denying adversaries resources and maximizing the U.S. technological advantage whenever possible. 

Contact: Pat Sheehy, Ethan Knecht 

EU Energy / Ukraine

In response to continuing economic pressures from Russia’s invasion of Ukraine, EU leaders approved a series of measures on October 20 to control energy prices, including joint purchases of gas and limited price caps. They also approved in-principle a plan to provide Ukraine with 18 billion euros in financial support over the next year on October 21. Bloc finance ministers have now been tasked with implementing the decision. The funding is intended to allow Ukraine’s civil government to continue operating and stave off a refugee crisis caused by the destruction of Ukrainian infrastructure.  EU President Von Der Layen stated that this sum is expected to meet roughly half of Ukraine’s needs, with the remainder coming from “our American friends and by the financial institutions.”

The U.S. Departments of Transportation and Commerce separately announced on October 19 a  Joint Task Force with Ukraine to support Ukraine’s infrastructure resilience. The Task Force envisions a working-level meeting in the coming months to “enhance joint efforts to facilitate U.S. private sector involvement and implement the best of American and Ukrainian innovation in Ukraine’s reconstruction.”  A G7 Conference on the reconstruction of Ukraine will be hosted in Berlin on October 25. 

Contact: Pat Sheehy

TRIPS Waiver

Ten Senators and two House members sent separate letters urging USTR to protect U.S. intellectual property ahead of the mid-December decision by the World Trade Organization (WTO) on whether to expand the current waiver of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) for COVID-19 vaccines to also cover COVID-related diagnostics and therapeutics. 

The bipartisan Senate letter asks for consultations by October 31, 2022 on USTR’s decision-making about a TRIPS waiver for diagnostics and therapeutics.  At the WTO Ministerial Conference (MC12) in June 2022, WTO members agreed to waive TRIPS protections for COVID vaccine patents for five years and to make a decision on whether to expand the waiver to COVID-related diagnostics and therapeutics within six months.

The House letter, from Republican leaders of the Ways and Means Committee to USTR, asks for information by November 3, 2022 on the TRIPS waivers as outlined in H. Res 1285 and for USTR to preserve documentation on the waiver decision, citing a “disappointing and unacceptable” level of transparency.

Contact: Chris Benscher

Quick takes

  • The Committee of Foreign Investment in the United States (CFIUS) released its first-ever Enforcement and Penalty Guidelines on October 20. CFIUS scrutinizes inbound investment into the United States. The committee can impose conditions or mitigations on transactions of concern or, in the most severe cases, block or unwind transactions. The document outlines how CFIUS will manage violations of these requirements or attempts to illegally evade its scrutiny.
  • The EU released its 2023 Programme of Work on October 19, laying out the Commission’s broad plans for the coming year. The document calls for the continued support for Ukraine and the modernization of the EU’s sanctions and investment controls. It also highlights climate, high technology and the digital economy, improved labor conditions, FTAs, anti corruption efforts, and improved member state implementation of EU law as key priorities. 
  • The White House released its National Biodefense Strategy on October 18. The strategy aims to prepare for future pandemics and biosecurity incidents by catalyzing international cooperation on testing, vaccines, and therapeutics on aggressive timelines.
  • The Department of Transportation and other agencies have requested and received Buy America waivers for infrastructure projects establishing an EV charging station network. 

NOTICES, BILLS & HEARINGS

Federal Register Notices

WHO’S WHO

Arrivals

  • Ashley Schapitl, Senior Policy Advisor on the Senate Finance Committee
  • Chris Arneson, Chief Budget and Economic Advisor on the Senate Finance Committee
  • Harry Mourtos, Acting CISA Deputy Chief of Cyber Assessments 
  • Kay Fallon, Acting DHS Deputy Chief of Staff 
  • Nimi Uberoi, Treasury Department Senior Advisor for Climate and Tax Implementation
  • Sloane Speakman, Senior Advisor to the Secretary of Defense for Taiwan Policy

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

UPCOMING EVENTS

  • Slovenian Presidential Elections, October 23
  • Environment Council meeting on COP 27 (Brussels), October 23
  • 2022 OSCE Mediterranean Conference (Jordan), October 24-25
  • ASEAN Senior officials’ meeting on education (Siam Reap), October 25-26
  • ASEAN “Inclusive Business Summit ” (Hybrid/Siem Reap), October 26-27
  • G20 Health Ministerial (Bali), October 27-28
  • EU Committee of Permanent Representatives (Brussels), October 28
  • Brazilian presidential runoff, October 30
  •  International Labor Organization Governing Body (Geneva), October 30-November 10

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

Christina Rodas
In

International Issues Update

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

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.

Christina Rodas
In

International Issues Update

ON OUR DESKS

  • Assessing enforcement outlook for import restrictions related to forced labor in China 
  • Reporting on Russia sanctions compliance developments
  • Preparing communications and government outreach materials for a major client event

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:

  • October 6: Assistant U.S. Trade Representative for Japan, Korea, and APEC Michael Beeman, APEC Leaders Summit and U.S. Asia-Pacific priorities

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

Clean Energy 

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) on October 5 issued six Federal Register Notices seeking input on key climate and clean energy tax incentives in the Inflation Reduction Act (IRA). The IRA’s electric vehicle (EV) tax credit provisions, specifically requirements that certain battery components be manufactured or assembled in North America, have been criticized by U.S. trading partners. The IRS is accepting comments until November 4 on certain definitions and factors to be considered in rule-making to determine applicability of the $270 billion in IRA EV and energy security tax credits. 

Separately, the Commerce Department is accepting public comments until November 3 on products proposed to be included in targeted analysis of trade data and evaluation of policies to strengthen critical supply chains. In accordance with an Executive Order on “America’s Supply Chains,” the list focuses on: public health and biological preparedness, information and communications technology (ICT), energy, and critical minerals. 

Contact: Steve Ziehm

China export controls

The Commerce Department’s Bureau of Industry and Security (BIS) announced on October 7 new restrictions on the export of advanced computing technologies to China, imposing a host of new restrictions on production of advanced semiconductors and supercomputers. 

Export restrictions on semiconductor manufacturing items go into effect immediately, with other restrictions phased in on October 12 (restrictions on support for development, production, or use of integrated circuits in Chinese facilities) and October 21. BIS has established a Temporary General License (TGL) allowing limited activities related to items destined for use outside the PRC. 

BIS is accepting public comments for 60 days and will host an October 13 public briefing on the complex new restrictions. Further analysis and a summary of the public briefing are available on request. 

Contact: Pat Sheehy

Americas

Former president Luiz “Lula” da Silva held onto a narrow lead over President Jair Bolsonaro in the October 2 first round of Brazil’s general elections and currently holds the advantage for the October 30 run-off. However, far-right and center-right candidates made significant gains in congressional and gubernatorial races and are in position to limit Lula’s policy agenda.

Secretary of State Antony Blinken visited Colombia, Chile, and Peru in advance of the Organization of American States (OAS) General Assembly in Lima, the first to be held in person since 2019. Blinken participated in OAS ministerials on migration and the Summit of the Americas and supported resolutions on human rights in Nicaragua and Venezuela, as well as condemning Russia’s aggression in Ukraine.

In a blow to Venezuelan opposition leader Juan Guaido, more than half of OAS member countries voted in favor of a resolution that would deny Guaido’s government recognition by the OAS. The resolution to remove Guaido’s permanent representative (ambassador) to the organization failed to win the two-thirds majority required to advance to the General Assembly floor, but it reflected waning support in the region for Guaido. 

Meanwhile, signs of thawing in the U.S.-Venezuela relationship include reports of potential sanctions relaxation (contingent on the Maduro regime negotiating democratic reforms with the opposition), on the heels of a high-profile exchange of seven detained U.S. citizens for two nephews of President Nicolás Maduro’s wife. 

Contact: Ethan Knecht, Pat Sheehy

Forecasting the next Congress

Recent statements by Republican leaders of House congressional committees foretell potential policy priorities if Republicans regain control of the House. Areas of interest include:  

Farm Bill: Congressman Scott Thompson (R-PA), ranking member of the House Agriculture Committee, would be expected to oppose efforts to further reorient conservation programs towards climate mitigation and would likely push to increase oversight of foreign investment impacts on national security, trade, and food security.

Export controls: Congressman Michael McCaul (R-TX), ranking member of the House Foreign Affairs Committee, would likely undertake a 90-day review of Commerce’s Bureau of Industry and Security (BIS), with a view toward increasing application of export controls (particularly to control exports to China) and potentially exploring moving export control authority to the Department of State.

Trade and tax: Congressman Vern Buchanan (R-FL), the most senior Republican House Ways and Means Committee member who is not retiring would likely prioritize promoting free trade agreements and Trade Promotion Authority (TPA), urge the Administration to increase USMCA enforcement cases, and work to make Republican tax cuts permanent.

Contact: Chris Benscher

Quick takes

  • President Biden spoke out against OPEC’s announcement it will reduce oil production by 2 million barrels per day starting in November and announced he will consult with Congress on additional tools and authorities to reduce OPEC’s control over energy prices.
  • Last-minute amendments to the National Defense Authorization Act in the Senate revived chances for passage of trade-related measures, while other trade funding bills remain stuck and unable to be attached to this authorization bill.
  • The WTO forecast a sharp slow-down in trade growth in 2023, as inflation and monetary policy tightening are expected to curb demand.   
  • Malaysia became the ninth CPTPP signatory (out of 11) to ratify the treaty. Brunei and Chile are the final two remaining.  
  • The Americans for Free Trade coalition comprising about 170 business associations called on USTR to immediately extend the Section 301 China tariff exclusions set to expire December 31.  
  • The EU adopted an eighth tranche of sanctions on Russia on October 6. The sanctions include a price cap on maritime transport of Russian oil, import and export controls, new services restrictions, and individual sanctions designations. 

NOTICES, BILLS & HEARINGS

Federal Register Notices

Legislation

 House

  • H.R.9140 (Wilson, R-SC) Prohibits acting as an agent of foreign adversary countries.
  • H.R.9120 (Pfluger, R-TX) Requires military assessment of the ability Baltic countries have to deter Russian aggression.

WHO’S WHO

Arrivals

  • Ami Morgan, NSC Director for Strategic Planning
  • Ariel Dorsey, USTR Director for Innovation and Intellectual Property
  • James O’Brien, Professional Staff Member on the House Subcommittee on Trade
  • Leah Uhrig, Legislative Director for Congressman Ted Lieu (D-CA)
  • Nina Hachigian, Special Representative for Subnational Diplomacy

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

UPCOMING EVENTS

  • Annual IMF and World Bank meetings, (Washington DC), October 10-16
  • Annual EU Budget Conference (Brussels), October 10
  • UN Committee on World Food Security (Rome), October 10-13 
  • FAO/WHO Joint Meeting on Pesticide Management (Rome), October 11-14
  • EU Committee of Permanent Representatives meetings (Brussels), October 12&14

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

Christina Rodas
In

International Issues Update

ON OUR DESKS

  • Working with WIBC clients to survey 2023 priorities and service needs
  • Briefing clients on export restrictions and Russia developments
  • Developing client participation strategies and supporting side events for the UN Climate Summit (COP27)

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:

  • September 23: Treasury Director of Foreign Assets Control Andrea Gacki, U.S. sanctions agenda

Up next: Register for upcoming WIBC discussions here

  • 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

UN General Assembly (UNGA)

With UNGA fully in-person for the first time since the COVID-19 pandemic, world leaders descended on New York City for the UNGA plenary and multiple side events, including a food security ministerial. The lingering pandemic generally took a back seat to discussions of the war in Ukraine, energy and climate, global hunger, and other pressing matters.

The United States convened a Global Food Security Summit September 20 and issued a joint declaration with Spain, the African Union, the European Union, Colombia, Germany, Indonesia, and Nigeria focused on stepping up humanitarian financing, avoiding unjustified trade restrictions, and increasing investments in science-based agricultural innovations. President Biden announced $2.9 billion in food security assistance funding during his September 21 UNGA plenary address. Relatedly, USDA announced on  September 14 $2.8 billion in grant funding for Climate-Smart Commodities, aimed at reducing U.S. greenhouse gas emissions. 

Other key UNGA happenings include a ministerial meeting of the Security Council to consider the ongoing conflict in Ukraine. Ministers from France, Britain, and the U.S. condemned the invasion and argued that Russia bears sole responsibility for rising energy and food prices.  Russian Foreign Minister Sergei Lavrov staged a walkout. President Biden also announced U.S. support for expansion of the Security Council to include representatives from the global south.

Contact: Steve Ziehm

Fiscal and monetary policy

Central banks around the world continue to raise interest rates in attempts to tamp down inflation. The Swiss National Bank’s September 22 interest rate hike ended Europe’s period of negative interest rates after inflation hit 3.5% in Switzerland last month. Japan is now the last major economy with negative interest rates, after the Bank of Japan decided to hold interest rates at -0.1% this week.

Meanwhile, new UK Prime Minister Liz Truss’ government announced a “mini-budget” that includes major individual income tax cuts, cancels planned increases in corporate taxes, and foresees significantly increased borrowing to pay for planned government spending in pursuit of renewed economic growth. The government’s plans were unveiled just one day after the Bank of England hiked interest rates by half a percentage point. 

Contact: Chris Benscher

G20 Trade Ministerial

G20 trade, investment and industry ministers met September 21-23 in Bali, amid continuing high inflation and supply chain disruptions, among other challenges. The ministers issued a high-level statement expressing support for six priority issues to address global trade challenges, including WTO reforms and digital trade. 

U.S. Trade Representative Katherine Tai convened on September 21 an informal dialogue on WTO dispute settlement reform, inviting views on possible improvements to the Appellate Body that the United States has blocked since 2019.  At a WTO Dispute Settlement Body meeting this week, the United States said that the first step towards reform is to better understand the interests of all Members and not prejudge what a reformed system would look like, signaling the issue will not be settled shortly. 

Prior to the G20 meeting, Ambassador Tai co-chaired a consultation with the Association of Southeast Asian Nations Economic Ministers (AEM) in Cambodia on the margins of the ASEAN Economic Ministers’ Meeting.  The ministers sought to work jointly in the context of Indonesia’s G20 Presidency under the theme “Recover Together, Recover Stronger”, Thailand as host of Asia-Pacific Economic Cooperation (APEC) under the theme “Open. Connect. Balance.”, and the United States as host of APEC in 2023. 

Contact: Steve Ziehm

Quick takes

  • The United States and Paraguay met September 16 for the first time under their Trade and Investment Framework Agreement (TIFA) finalized in March 2021, focusing on trade facilitation and agricultural trade. 
  • World Bank president David Malpass is reportedly under pressure to resign after making remarks some say minimize the threat of climate change.
  • The Senate reached a rare bipartisan deal, belatedly ratifying and bringing the United States into an international agreement to phase out industrial chemicals commonly found in refrigerators and air-conditioners. 
  • Voting opened on September 23 in what the United States and allies have called “sham” referenda on Russia’s annexation of occupied territories in Ukraine. Annexation would likely prompt additional sanctions from both the United States and the EU.  During Senate Banking hearings on September 20, witnesses urged price caps on Russian oil.
  • After President Biden affirmed on September 18 that the United States would send forces to defend Taiwan in the event of any Chinese attack, CEOs of JPMorgan Chase, Bank of America and Citigroup testified to Congress that they would be prepared to pull investments out of China if so directed by the U.S. government.
  • The Treasury Department issued a general license broadly allowing the export of certain internet and communications services to Iran, a move Secretary of State Antony Blinken described as “advanc[ing] Internet freedom and the free flow of information for the Iranian people.” The new license replaces more limited previous authorizations and is intended to remove pain points for industry.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Legislation

 House

  • H.R.8947 (Waltz, R-FL) Would prevent Iran sanction waivers.
  • H.R.8911 (Calvert, R-CA) Requires report on Russian and Chinese mining investments.
  • H.R.8906 (Wasserman-Schultz, D-FL) Retroactively applies GSP preferential treatment.

​​Senate

  • S.4937 (Rubio, R-FL) Prohibits U.S. recognition of Russia’s Ukraine sovereignty claim.
  • S.4930 (Peters, D-MI) Prohibits procurement from companies operating in Russia.
  • S.4924 (Ernst, R-IA) Would prevent Iran sanction waivers.

Upcoming Congressional Hearings 

House

Senate

WHO’S WHO

Nominations

  • Martina Anna Tkadlec Strong, U.S. Ambassador to the United Arab Emirates
  • Begzat Bix Aliu, U.S. Ambassador to Montenegro
  • Lynne Tracy, U.S. Ambassador to Russia
  • Roger Nyhus, U.S. Ambassador to Barbados, St. Kitts and Nevis, St. Lucia, Antigua and Barbuda, Dominica, Grenada, and St. Vincent and the Grenadines

Arrivals

  • Bede Corry, Ambassador of New Zealand to the U.S.
  • Kristin Lynch, Deputy Assistant Secretary of Treasury for Public Affairs
  • Dina Esposito, Acting Assistant to the Administrator for the Bureau of Resilience and Food Security (RFS) at USAID, Feed the Future Deputy Coordinator for Development, and USAID’s new Global Food Crisis Coordinator.
  • Ariel Dorsey, USTR Director of Innovation and Intellectual Property

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

UPCOMING EVENTS

  • EU Ag and Fisheries Council (Brussels), September 26
  • IAEA General Conference (Vienna), September 26-30
  • Senate and House in session, September 28-30
  • International Telecommunications Union Plenipotentiary Conference (Bucharest), September 26-October 14
  • G20 Agriculture Ministerial (Bali), September 27-29 
  • Deadline to pass FY2023 federal budget reconciliation and appropriations, September 30

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

Christina Rodas
In

International Issues Update

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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