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Alix Hess
In

International Issues Update 2023/36

ON OUR DESKS

  • Preparing client submissions on trade barriers for the 2023 National Trade Estimate (NTE) 
  • Drafting comments on proposed recycled content and labeling rules in Canada
  • Facilitating clients’ diplomatic engagements

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

Upcoming WIBC Events:

  • October 5: Canadian Minister Counsellor for Economic and Trade Policy Carlos Vanderloo, U.S.-Canada relations and Canada’s economic and trade priorities
  • October 11: State Department Senior Advisor to the Special Presidential Climate Envoy Trigg Talley, U.S. COP28 priorities
  • Special Brussels convening October 11: Senior U.S. Trade Representative to the European Union Rufino Hurtado and European Commission official (TBC), Drivers, dynamics, and developments in transatlantic trade
    You are welcome to forward the invitation to this in-person program in Brussels to appropriate colleagues. Email alix.hess@redflag.global for details.

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

China

The United States and China announced on September 22 establishment of two new working groups focused on economic and financial issues, both led on the U.S. side by the Treasury Department and largely replacing the Strategic and Economic Dialogue previously terminated by the Trump administration. The announcement follows establishment of Commerce-led working groups on commercial issues and export controls. 

Amid continuing signs of economic malaise, China will reportedly replace finance minister Liu Kun with Lan Fo’an, a former provincial governor with little macroeconomic experience but strong connections with more senior economic officials like Vice Premier He Lifeng.  This is the third ministerial-level shakeup in as many months, following the dismissal of Foreign Minister Qin Gang and the ongoing disappearance of Defense Minister Li Shangfu. Other economic moves include proposals to loosen cross-border data-security controls.

U.S. Trade Representative Katherine Tai’s September 22 Center for Strategic and International Studies (CSIS) speech focused on WTO reform, and on September 27 President Xi convened a meeting of high-level officials on the same topic, saying China will participate “comprehensively and deeply” in WTO reform. He urged his subordinates to continue improving the business climate while still “safeguarding” the PRC’s security.  

Contact: Ethan Knecht, Pat Sheehy

Congress

House Republicans passed three spending bills – Defense (HR 4365), Homeland Security (HR 4367) and State-Foreign Operations (HR 4665) – ahead of a looming government shutdown. The House also voted to provide $300 million to Ukraine (HR 5692), money that was stripped out of the Defense spending bill to allow for a stand-alone vote on Ukraine aid. An agriculture spending bill (HR 4368) failed to win a majority. 

A one-month stopgap funding measure (HR 5525), which passed the House rules committee, would reduce funding by 29.9% for most non-defense agencies and is not expected to pass the Senate, even if it were to pass in the House. 

Many government agencies are planning scaled-down operations if Congress fails to pass a continuing resolution to fund the government by September 30. 

Contact: Chris Benscher

Sanctions

Australia, Canada, New Zealand, the United Kingdom, and the United States issued joint guidance on export control enforcement identifying high priority items critical to Russian weapons systems and alerting industry to the risk of diversion or smuggling. The items identified fall into priority tiers, with microelectronics a major focus, but common industrial and consumer items are also featured. 

New Commerce and Treasury sanctions aimed at Russia, Iran, and China include Treasury’s September sanctions on a transnational network supporting Iran’s one-way attack unmanned aerial vehicle (UAV) program, associated with battlefield use by Russia in Ukraine. Commerce on September 25 placed 28 entities based in China, Russia, Pakistan, Finland, Oman, Germany, and the United Arab Emirates (UAE) on the Entity List, prohibiting them from receiving most U.S. exports without a license. The restricted entities have engaged in UAV development for use against Ukraine, Pakistani nuclear proliferation, and smuggling of advanced components for use by Russia. 

Contact: Pat Sheehy

Quick takes

  • Testifying before the House Foreign Services Committee, SEC Chairman Gary Gensler indicated that finalization of climate disclosure rules could slip as late as May 2024.
  • President Biden will host on October 20 the second U.S.-EU Summit since he took office, expected to continue transatlantic negotiations on critical minerals, as well as sustainable steel and aluminum.
  • Commerce issued final rules for national security guardrails on CHIPS Act semiconductor funding, prohibiting funding recipients from expanding capacity in foreign countries of concern (including China) for ten years and restricting certain joint research or technology licensing efforts.
  • During the September 25-26 U.S.-Pacific Islands Forum Summit, the United States established diplomatic relations with Niue and the Cook Islands, announced expanded diplomatic and consular presence in the region, and advanced climate cooperation, among other announcements. 
  • Incoming Mercosur president Paraguay said it will break off EU FTA negotiations if no deal is reached before Brazil’s Mercosur presidency ends December 6. Negotiations are set to restart in October, with the EU seeking to conclude negotiations by the end of the year.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.5659 (Posey, R-FL) – Would prohibit Federal research agencies from carrying out certain activities with certain countries.
  • H.R.5692 (Kean, R-NJ) – Would provide FY2024 supplemental appropriations to the Department of Defense (DOD) for assistance to Ukraine and establish the Office of the Special Inspector General for Ukraine Assistance.
  • H.R.5714 (Khanna, D-CA) – Would require the Comptroller General of the United States to report on the country of origin of end items and components procured by the Department of Defense.
  • H.R.5744 (Carbajal, D-CA) – Would create a Carbon Dividend Trust Fund to encourage market-driven innovation of clean energy technologies and market efficiencies 
  • H.R.5753 (Gallagher, R-WI) – Would reactivate and repurpose canceling funds to deter the Chinese Communist Party before such funds are extracted from the Department of Defense on October 1, 2023.
  • H.R.5766 (Miller, R-WV) – Would increase the rate of duty on ferro silicon produced in Russia and Belarus and to require a domestic production assessment before increasing rates of duty under the Suspending Normal Trade Relations with Russia and Belarus Act.
  • H.R.5791 (Davidson, R-OH) – Would require a comprehensive report that contains a U.S. strategy for involvement in Ukraine.
  • H.R.5800 (Jackson Lee, D-TX) – Would authorize the imposition of sanctions to combat the mass abduction of Ukrainian children to Russia and areas of Ukraine that are temporarily occupied by Russian forces.
  • H.R.5826 (Wilson, R-SC) – Would require a report on sanctions under the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act.

Senate

  • S.2930 (Lee, R-UT) – Would give the Federal Government exclusive authority to regulate the labeling of products made in the United States and introduced in interstate or foreign commerce.
  • S.2935 (Risch, R-ID) – Would prohibit any official action to recognize or normalize relations with any Government of Syria that is led by Bashar al-Assad.
  • S.2937 (Brown, D-OH) – Would increase the rate of duty on ferro silicon produced in Russia and Belarus and to require a domestic production assessment before increasing rates of duty under the Suspending Normal Trade Relations with Russia and Belarus Act.
  • S.2947 (Rubio, R-FL) – A bill to expand the transactions for which declarations may be required by the Committee on Foreign Investment in the United States.
  • S.2952 (Kennedy, R-LA) – Would extend the African Growth and Opportunity Act.
  • S.2956 (Ossoff, D-GA) – Would support the work of the United States Security Coordinator to Israel and the Palestinian Authority in furthering coordination between Israelis and Palestinians.
  • S.2979 (Cassidy, R-LA) – Would increase the rate of duty on shrimp originating from India.
  • S.2992 (Cassidy, R-LA) – Would require the establishment of a joint task force to identify and eliminate barriers to agriculture exports of the United States.
  • S.2995 (Van Hollen, D-MD) – Would oppose any attempts by China to resolve Taiwan’s status by distorting the decisions, language, policies, or procedures of the organization.

Upcoming Congressional Hearings

Senate

WHO’S WHO

Arrivals

  • Senator Ben Cardin (D-MD), Chairman of the Senate Foreign Relations Committee
  • Bianca Majumder, Council on Environmental Quality Policy Adviser for Clean Energy and Infrastructure
  • Luke Bassett, Treasury Office of Inflation Reduction Act Implementation Senior Advisor and Director of Policy and Program Impact
  • Manpreet Teji, Domestic Policy Council Director for Immigration 
  • Rufino Hurtado, Senior U.S. Trade Representative to the European Union

Departures

  • Ana Rosa Quintana, GOP Staff Director for the House Western Hemisphere Subcommittee
  • Bharat Ramamurti, National Economic Council Deputy Director
  • Ryan Long, Senior Health Policy Advisor to Speaker McCarthy (R-CA)

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

UPCOMING EVENTS

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

Any issue areas you would like highlighted? Have a specific monitoring request? Reach out to us.

Alix Hess
In

International Issues Update 2023/35

ON OUR DESKS

  • Reporting on the implementation of the Inflation Reduction Act’s clean energy tax credits  
  • Executing public communications strategies on clients’ environmental sustainability achievements
  • Planning UN Climate Summit engagements and assessing likely outcomes
  • Further analyzing State of the EU and election implications

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

In case you missed it:

  • September 21: Deputy Assistant Secretary of State for Trade Policy and Negotiations Tony Fernandes, International trade policy and negotiations affecting international business

Upcoming WIBC Events:

  • October 5: Canadian Embassy Economic Minister John Layton, U.S.-Canada relations and Canada’s economic and trade priorities

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

United Nations

The 78th United Nations General Assembly opened General Debate on September 19 in New York. The annual meeting has featured discussions around the war in Ukraine, health issues, food security, climate change, ocean conservation, plastics pollution, labor rights, and democratic backsliding. Debate will continue through September 26. 

President Biden’s remarks focused on global stability, updating multilateral institutions, and sustainable development.  The President helped launch the 32-country Partnership for Atlantic Cooperation, which will focus on “economic development to environmental protection to science and technology.” He also used the occasion to meet on the sidelines with leaders from the five Central Asian states, which per a C5+1 Joint Statement he stressed “unwavering commitment to uphold the principles of the United Nations Charter… [and] respect for the independence, sovereignty, and territorial integrity of all states” in a seeming reference to Russia’s invasion of Ukraine. 

President Zelenskyy of Ukraine delivered remarks emphasizing the global impacts of Russia’s invasion of Ukraine. He then traveled to Washington to meet with Congressional leadership to emphasize Ukraine’s ongoing need for support.  The Biden administration announced an additional military aid package for Ukraine on September 21. 

Leaders also met for summits on the sustainable development goals and climate, a high level dialogue on development finance, and high level dialogues on health issues (tuberculosis, universal coverage, and pandemic preparedness).  On the margins of the UNGA, Under Secretary of State for Economic Growth, Energy, and the Environment Jose W. Fernandez launched the End Plastic Pollution International Collaborative (EPPIC), a public-private partnership with $15 million in initial U.S. funding to catalyze products to address the plastics pollution crisis. 

Contact: Pat Sheehy, Ethan Knecht

European Union

European Commission President Ursula von der Leyen gave her annual State of the European Union speech on September 13. The speech touched upon the EU policy agenda for the last months of the Commission’s term, with green and digital policy taking center stage. She also outlined her views on EU immigration policy, Ukraine and EU enlargement. The most notable announcement was the launch of an anti-dumping investigation against Chinese electric vehicles, which is likely to spark significant debate between EU governments and could have significant impacts on global trade dynamics. Overall, the speech confirmed that the political balance in Europe is shifting to the right ahead of the upcoming European election campaign.  The competitiveness of European industry and wider economic concerns are likely to feature highly in the upcoming election campaign, together with immigration policy. 

Contact: Lorenzo Torti 

Iran

The United States announced September 18 that it reached a deal for the release of five Americans held hostage in Iran. The Administration released $6 billion in frozen Iranian oil revenue and dismissed charges against five Iranians accused of violating U.S. sanctions in exchange. The United States also announced the establishment of a humanitarian channel in Qatar (HC) to facilitate humanitarian trade with Iran. The HC does not lift sanctions on Iran but is intended to provide an avenue for already-permissible activities like trade in food, agricultural goods, medicine, and medical devices. The channel will be under “stringent due diligence measures” to avoid misuse.

Contact: Pat Sheehy

Latin America

On the sidelines of the UN General Assembly, President Biden met with his Brazilian President Lula da Silva to launch the Partnership for Workers’ Rights. The initiative will advance labor issues in its respective countries and provide a platform for collaboration in multilateral fora like the ILO. The two leaders also discussed a democratic transition in Venezuela, instability in Haiti, and the effect of Russia’s war in Ukraine on energy and food security. 

The Biden Administration was also active on Cuba issues this week, as the Treasury Department reportedly prepares to reduce restrictions for Cuban entrepreneurs. More specifically, the new rules will allow Cuban entrepreneurs to “establish and remotely access U.S. bank accounts to conduct authorized transactions” and to use “internet services such as videoconferencing, e-learning, automated translation, I.T. managing services and cloud-based services.”

Deputy U.S. Trade Representative Jayme White met with his Canadian and Mexican counterparts in advance of the USMCA Dialogue on SMEs. In his meeting with Under Secretary Encinas of Mexico, he stressed U.S. concerns related to steel, energy, telecommunications, and medical devices. The meeting comes just a week after the U.S. Ambassador to Mexico said in an interview that the U.S.-Mexico energy dispute merited a formal arbitration panel to resolve the dispute.

Contact: Ethan Knecht

Quick takes

  • The fifth round of Indo-Pacific Economic Framework (IPEF) negotiations concluded September 16 in Bangkok with negotiators citing progress on the trade, clean economy and fair economy pillars ahead of a targeted deadline of the November APEC Summit.  
  • The House Ways and Means Subcommittee on Trade Subcommittee held a September 20 hearing on potential reforms to the Generalized Systems of Preferences (GSP) program, with private sector witnesses assessing possible changes to the tariff program which provides duty-free benefits to developing countries.  The GSP program has been expired since December 2020, but the subcommittee’s leadership is aiming to reach a bipartisan consensus to pass renewal legislation.  
  • Azerbaijan launched a military action September 19 to remove Armenian forces from the Nagorno-Karabakh region, raising the prospect of a broader “unthawing” of Russian sponsored post-Soviet “frozen conflicts.”  Russia has historically supported Armenia but declined to intervene. 
  • The Department of Agriculture opened the application period for a $65 million pilot program for H-2A agricultural guest workers to expand participation by Central American workers and help agricultural employees who meet certain labor standards with recruiting and retention costs. 
  • California Governor Gavin Newsom said he would sign legislation that would require businesses, including those privately held, to report on emissions if they operate in California and have at least $1 billion in revenue. In addition to their direct emissions, those businesses would have to account for emissions by suppliers and customers, so-called “Scope 3” emissions.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.5670 (Wasserman Schultz, D-FL) – Would require certain actions relating to the protection of free, fair, and transparent elections in Venezuela.
  • H.R.5614 (Wenstrup, R-OH) – Would extend duty-free treatment provided with respect to imports from Haiti under the Caribbean Basin Economic Recovery Act.
  • H.R.5613 (Waltz, R-FL) – Would require a review of whether individuals or entities subject to sanctions should also be subject to the imposition of other sanctions.
  • H.R.5565 (Fitzgerald, R-WI) – Would require a report regarding the scope of efforts by the PRC and CCP to utilize the Belt and Road Initiative to undermine the United States-led international world order and a detailed strategy regarding how USG intends to counter such Initiative.
  • H.R.5557 (Himes, D-CT) – Would impose sanctions against certain persons engaged in the proliferation or use of foreign commercial spyware.
  • H.R.5556 (Curtis, R-UT) – Would make exclusive the authority of the Federal Government to regulate the labeling of products made in the United States and introduced in interstate or foreign commerce.
  • H.R.5532 (Connolly, D-VA) – Would impose sanctions with respect to North Korea’s support for Russia’s illegal war in Ukraine.
  • H.R.5524 (Garcia, D-TX) – Would amend the start date of the Foreign Affiliates Sharing pilot program on sharing with foreign branches, subsidiaries and affiliates.

Senate

  • S.2900 (Menendez, D-NJ) – Would protect and provide humanitarian assistance to Armenians in Armenia and Nagorno-Karabakh impacted by actions taken by the Government of Azerbaijan.
  • S.2894 (Ricketts, R-NE) – Would amend the State Department Basic Authorities Act of 1956 to require certain congressional notification prior to entering into, renewing, or extending a science and technology agreement with the People’s Republic of China.
  • S.2848 (Rubio, R-FL) – Would block the property of Russian state-owned entities.
  • S.2847 (Rubio, R-FL)- Would prohibit the importation of agricultural products, raw materials, and food from the Russian Federation if the Russian Federation prohibits the importation of such products, materials, and food from the United States.

Upcoming Congressional Hearings

House

Senate

WHO’S WHO

Arrivals

  • Brian Burton, Senior Adviser to the Assistant Secretary of Defense for Industrial Base Policy
  • General Charles Brown, Chairman of the Joint Chiefs of Staff
  • Matthew Ferraro, DHS Senior Counselor for Cybersecurity and Emerging Technology to the Secretary
  • Megan Crowe, Director of ITA’s Office of Consumer Goods

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

UPCOMING EVENTS

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

Any issue areas you would like highlighted? Have a specific monitoring request? Reach out to us.

Alix Hess
In

International Issues Update 2023/34

ON OUR DESKS

  • Analyzing the European Commission President’s State of the EU speech and the outlook for the Green Deal and Digital Policy
  • Assisting with identifying reliable sales representatives in emerging markets
  • Preparing submission for House hearing on trade preference reforms
  • Assessing national priorities for UNGA meetings

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

In case you missed it:

  • September 12: DFC Managing Director of Business Development and Impact Roxanne Alozie, Opportunities for international business engagement with the DFC

Upcoming WIBC Events:

  • September 21: Deputy Assistant Secretary of State for Trade Policy and Negotiations Tony Fernandes, International trade policy and negotiations affecting international business

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

G20 

India hosted the G20 Leaders’ Summit in New Delhi from September 9-10, resulting in several new U.S.-led initiatives and the permanent expansion of the group. The Joint Leaders’ Declaration notably softened language regarding Russia’s war in Ukraine, but it also included new and notable language on debt relief, reforming multilateral development banks, financing climate resilience, and digital technology. The African Union also permanently joined the G20 as a result of the summit.

The United States announced new initiatives regarding infrastructure and biofuels. On the sidelines of a meeting on President Biden’s signature Partnership for Global Infrastructure and Investment (PGI), the United States announced infrastructure investments in the Lobito Corridor, covering Angola, Zambia and the DRC, a India-Middle East-Europe Economic Corridor, and additional investments in countries like El Salvador, the Philippines, and Mozambique. Six countries also joined the United States in launching the Biofuels Alliance, which will secure “the supply of biofuels, ensuring these biofuels remain affordable and are produced sustainably.” Despite China’s protests, at the conclusion of the Summit it was announced that the United States would host the G20 in 2026.

President Biden met with China’s second-highest leader, Premier Li Qiang, on the sidelines of the G20, marking the highest-level meeting between the two countries since Biden and Xi’s meeting last fall. The two discussed global stability, and following the meeting President Biden told the press that “I don’t think [China’s economic slowdown] is going to cause China to invade Taiwan… as a matter of fact, the opposite, probably doesn’t have the same capacity that it had before.”

Contact: Ethan Knecht, Pat Sheehy

Vietnam

President Biden traveled to Vietnam September 10-11 following the conclusion of the G20, meeting with General Secretary Nguyen Phu Trong.  The two leaders announced the elevation of the U.S.-Vietnam relationship to a comprehensive strategic partnership.  Some notable outcomes include U.S. support for Vietnam’s manufacturing, infrastructure development, agriculture, and supply chains via forthcoming actions by the U.S. International Development Financial Corporation (DFC).  The leaders announced collaboration on global health security and medical devices. Finally, Biden applauded Vietnam’s progress in significant market-based economic reforms and committed to reviewing a September 8 request by Vietnam for treatment as a market economy in anti dumping procedures “as expeditiously as possible, in accordance with U.S. law.”

Contact: Ethan Knecht, Pat Sheehy

Quick takes

  • The Senate Foreign Relations Committee unanimously passed legislation that would establish the first United States-Taiwan taxation agreement. The bill would cut by two-thirds the withholding tax rate on income earned in the United States by qualified Taiwanese entities. 
  • The Treasury Department hosted the second annual CFIUS conference September 14, with  Secretary Janet Yellen stressing CFIUS’ commitment to enforcing mitigation agreements and other restrictions imposed on transactions by the foreign investment screening committee. Yellen’s remarks come following reports that technology of concern has flowed to China, despite mitigation agreements.
  • The State and Treasury Departments on September 14 sanctioned approximately 150 Russian and third country parties supporting the war in Ukraine and engaging in sanctions evasion. Sanctioned parties include numerous maritime and shipping firms in Türkiye, an engineering firm in the UAE, a Finnish logistics network and hundreds of Russian parties. 
  • Special Presidential Advisor for the Americas Chris Dodd used a visit to Lima to encourage Peru’s participation in the Americas Partnership for Economic Prosperity (APEP); separately the Council of the Americas issued a report advocating for the expansion of the USMCA, a concept that is endorsed in the forthcoming “Americas Act” legislation being prepared by Senators Bill Cassidy (D-LA) and Michael Bennet (D-CO).

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.5512 (Sherman, D-CA) – Would require United States financial institutions to ensure entities and persons owned or controlled by the institution comply with financial sanctions on the Russian Federation and the Republic of Belarus to the same extent as the institution itself, and for other purposes.
  • H.R.5488 (Johnson, R-LA) – Would amend chapter 111 of title 28, United States Code, to increase transparency and oversight of third-party funding by foreign persons, to prohibit third-party funding by foreign states and sovereign wealth funds, and for other purposes.
  • H.R. 5447 (Ogles, R-TN) Would prohibit any transactions using Alipay in the United States.
  • H.R.5417 (Tenney, R-NY) –  Would require the denial of admission to the United States for individuals subject to sanctions pursuant to Executive Order 13876 (Imposing Sanctions with Regard to Iran), and for other purposes.
  • H.R.5409 (Luetkemeyer, R-MO) – Would amend the Defense Production Act of 1950 to require the Committee on Foreign Investment in the United States to determine whether a national security review is needed for reportable agricultural land transactions referred by the Secretary of Agriculture, and for other purposes.
  • H.R.5404 (Fitzgerald, R-WI) – Would direct the Attorney General to prepare a report on the Department of Justice activities related to countering Chinese national security threats, and for other purposes.
  • H.R.5375 (Meeks, D-NY)- Would require a strategy for bolstering engagement and cooperation between the United States, Australia, India, and Japan and to seek to establish a Quad Intra-Parliamentary Working Group to facilitate closer cooperation on shared interests and values.
  • H.R.5374 (Meeks, D-NY) – Would provide for export approvals for high-performance computers to India.
  • H.R.5370 (Hill, R-AR) – Would declare the Russian Federation an Aggressor State and provide for the transfer of blocked assets of such a country to the United States to be used for the reconstruction of Ukraine, and for other purposes.
  • H.R.5311 (Lieu, D-CA) Would preempt State data security vulnerability mandates and decryption requirements.
  • H.J.Res.89 (McClellan, D-VA) – Would require the advice and consent of the Senate or an Act of Congress to suspend, terminate, or withdraw the United States from the North Atlantic Treaty and authorizing related litigation, and for other purposes.

Senate

  • S.2823 (Rubio, R-FL) – Would amend the Internal Revenue Code of 1986 to safeguard beneficial tax treatment on certain expenses from bolstering the research and development sectors in foreign entities of concern.
  • S.2805 (Kennedy, R-LA) – Would amend chapter 111 of title 28, United States Code, to increase transparency and oversight of third-party funding by foreign persons, to prohibit third-party funding by foreign states and sovereign wealth funds, and for other purposes.
  • S.2774 (Cruz, R-TX) – Would require the denial of admission to the United States for individuals subject to sanctions pursuant to Executive Order 13876 (Imposing Sanctions with Regard to Iran), and for other purposes.
  •  S.2761 (Lankford, R-OK) – Would deter conflict in the Taiwan Strait by establishing conditions for suspending normal trade relations with the PRC.
  • S.2752 (Lankford, R-OK) – Would establish the position of Country China Officer to monitor and counter financing projects around the world that are backed by the PRC.
  • S.2750 (Hawley, R-MO) – Would impose restrictions on the investment in Chinese companies by tax-exempt entities.
  •  S.2748 (Murphy, D-CT) – Would authorize the extension of nondiscriminatory treatment (normal trade relations treatment) to the products of Kazakhstan, Uzbekistan, and Tajikistan.

Upcoming Congressional Hearings

House

Senate

WHO’S WHO

Arrivals

  • Brianne Todd, NSC Director for Central Asian Affairs 
  • Dr. Eileen Donahoe, State Department Special Envoy and Coordinator for Digital Freedom
  • Ervin Bushati, Albanian Ambassador to the United States
  • Eyang Garrison, Senate Agriculture Committee Majority Staff Director 
  • Penny Pritzker, U.S. Special Representative for Ukraine’s Economic Recovery

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

UPCOMING EVENTS

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

Any issue areas you would like highlighted? Have a specific monitoring request? Reach out to us.

Alix Hess
In

International Issues Update 2023/33

ON OUR DESKS

  • Analyzing U.S. states’ manufacturing incentives
  • Assisting with ongoing issues around Russia divestment 
  • Scoping UN General Assembly (UNGA) engagement options
  • Advising on economic impact report launch and association branding

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

In case you missed it:

  • September 6: State DAS for International Organization Affairs Brian Grimm, Expectations and priorities for the 78th UN General Assembly

Upcoming WIBC Events:

  • September 12: DFC Managing Director of Business Development and Impact Roxanne Alozie, Opportunities for international business engagement with the DFC
  • September 19: Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Alexis Taylor, U.S. ag and food trade priorities

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

China

During her August 27-30 visit to China, Secretary of Commerce Gina Raimondo and her Chinese counterpart agreed to hold annual bilaterals and announced three additional new bilateral consultation groups – a twice annual vice ministerial-level working group on trade and investment, an Assistant Secretary-level export control enforcement information exchange, and “regular” technical discussions on protecting trade secrets during administrative licensing proceedings. Secretary Raimondo highlighted national security and people-to-people ties with Premier Li Qiang and also met with Vice Premier He Lifeng to discuss climate change, space commerce, artificial intelligence, and healthcare.

Raimondo’s trip came as China’s economy continues to struggle, with exports falling for the fourth consecutive month. In response, Beijing announced the National Development and Reform Commission would establish a Private Economy Development Bureau “to coordinate policies across different government bodies and help development of the private economy.” Additionally, the government cut taxes on stock trading and increased support for the property market. 

Contact: Ethan Knecht, Pat Sheehy

Indo-Pacific

Concluded on September 7 in Jakarta, the ASEAN Leaders Summit saw limited progress in priority areas such as navigating the U.S.-China rivalry, addressing the ongoing crisis in Myanmar, and articulating a unified response to the war in Ukraine. Leaders did agree economic policy declarations including on regional growth and food security. 

Representing China, Premier Li Qiang emphasized China’s role as a dominant economic partner in the region and encouraged the “setting aside” of differences, though he did not specifically address criticism of China’s actions such as releasing maps that portray neighboring countries’ territory as part of China.

Vice President Kamala Harris represented the United States in the U.S.-ASEAN dialogue, which focused on stability in the South China Sea and economic cooperation. Dialogue partners also announced the establishment of a public-private U.S.-ASEAN Center in Washington, DC.

Also on the margins of the Leaders Summit, Indonesia convened the first ASEAN Indo-Pacific Forum, dedicated to dealmaking with participants discussing 93 deals worth $38 billion, including major port development and industrial metal refining projects.

Meanwhile, Commerce released on September 7 the Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement, which aims to improve the resiliency and efficiency of supply chains “through information exchange, sharing of best practices, business matchmaking, collective response to disruptions, and supporting labor rights.”

Contact: Pat Sheehy,  Stephen Ziehm

Climate and environment

Ahead of a third round of global plastics treaty negotiations to be held November 13-19 in Nairobi, a zero draft published September 4 lays out options for objectives and provisions to stem plastic pollution. The zero draft includes a combination of nationally and internationally determined approaches but takes a generally broad approach, including “to protect human health” and with possible targets (voluntary or mandatory; global or national) for reduction and elimination over the full plastics life cycle. 

Separately, the inaugural African Climate Summit called for wealthier nations to facilitate investment in the continent as a clean energy hub and moving away from disaster-based aid.  During the summit, the United States announced a host of initiatives touching on food security, renewable energy, and climate resilience, while investors announced about $23 billion for projects such as solar microgrids, carbon markets, and reforestation. 

Contact: Liv Leone, Stephen Ziehm

Quick takes

  • USTR extended more than 400 China tariff exclusions until December 31 as it continues its statutorily-required four-year review of the Section 301 action.   
  • Signaling escalation of a U.S.-Mexico trade dispute, the Biden administration is reportedly seeking affidavits detailing disruptions to U.S. energy companies’ operations and investments in Mexico.
  • House Republicans visiting Germany and France laid out opposition to the OECD’s as yet-unfinalized global tax treaty. While 183 countries agreed in July not to impose digital services taxes while negotiations continue, uncertainty has already led some to break that pause. 
  • The Inter-American Development Bank (IDB) launched on September 6 a new program aimed at increasing participation of U.S. firms in projects financed by the bank to the tune of $4 billion per year.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.5309 (Lieu, D-CA) Would require a warrant for the disclosure of records from a provider of electronic communication service or remote computing service.
  • H.R.5310 (Lieu, D-CA) Would require information technology contractors to maintain a vulnerability disclosure policy and program.
  • H.R.5311 (Lieu, D-CA) Would preempt State data security vulnerability mandates and decryption requirements.

Senate

  • S.2750 (Hawley, R-MO) Would impose restrictions on the investment in Chinese companies by tax-exempt entities.
  • S.2748 (Murphy, D-CT) Would authorize the extension of nondiscriminatory treatment (normal trade relations treatment) to the products of Kazakhstan, Uzbekistan, and Tajikistan.
  • S.2716 (Ernst, R-IA) Would prohibit the use of taxpayer dollars to support animal experimentation in the laboratories of adversarial nations.
  • S.2719 (Ernst, R-IA) Would provide for the reallocation of unused waivers of the foreign residency requirement for certain J visa holders.
  • S.2725 (Van Hollen, D-MD) Would authorize the establishment of the US-ASEAN Center to support U.S. economic and cultural engagement with Southeast Asia.
  • S.2726 (Lankford, R-OK) Would prohibit funding universities that provide support to the Chinese military.
  • S.J.Res.44 (Paul, R-KY) A joint resolution directing the removal of U.S. Armed Forces from hostilities in the Republic of Niger that have not been authorized by Congress.

Upcoming Congressional Hearings

House

Senate

WHO’S WHO

Arrivals

  • Birgitta Tazelaar, Ambassador of the Netherlands to the United States
  • Bryant Trick, Acting Assistant USTR for Europe and the Middle East
  • Daniel Hornung, National Economic Council Deputy Director
  • Melanie Higgins, Deputy Assistant Secretary of State for African Affairs
  • Thomas Bruns, Deputy Assistant Secretary of Commerce for the Middle East and Africa

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

UPCOMING EVENTS

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

Any issue areas you would like highlighted? Have a specific monitoring request? Reach out to us.

Alix Hess
In

International Issues Update 2023/32

ON OUR DESKS

  • Coordinating with the U.S. International Trade Commission on its greenhouse gas emissions investigation
  • Assisting with outreach to foreign embassy officials
  • Providing contacts for engagement with the End Plastic Pollution International Collaborative (EPPIC)

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

In case you missed it:

  • August 22 (VIRTUAL): Senate Finance Committee Chief International Trade Counsel Sally Laing and Senior International Trade Counsel Virginia Lenahan, Trade priorities in the 118th Congress

Upcoming WIBC events:

  • September 6: State DAS for International Organization Affairs Brian Grimm, Expectations and priorities for the 78th UN General Assembly
  • September 12: DFC Managing Director of Business Development and Impact Roxanne Alozie, Opportunities for international business engagement with the DFC

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

Asia 

President Biden hosted Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol for a trilateral security summit at Camp David on August 18.  The leaders committed to annual meetings for themselves and their foreign ministers, defense ministers, and national security advisors. They also issued a joint statement, “The Spirit of Camp David,” establishing a “commitment to consult” each other on all security issues, crises, and issues of shared concern. The three made concrete commitments to collaborate on development finance and to better align themselves in a variety of economic statecraft areas. This alignment will include establishing a shared monitoring system for supply chain disruption in critical areas, collaboration on R&D, preventing technological theft, and export controls. South Korea will reportedly establish new export controls authorities in response to this commitment. 

ASEAN economic ministers met on August 19 in Semarang, Indonesia. Ministers expressed optimism in a joint statement “regarding the projected growth rates of 4.6% in 2023 and 4.9% in 2024.” They warned, however, that “geopolitical tensions can potentially disrupt international trade and supply chain links, thus, impeding efficiency gains derived from globalization…ultimately diminishing market confidence, reducing investment, and adversely affecting long-term growth prospects in the region.” Vice President Harris will attend the upcoming ASEAN Leaders’ Summit September 4-7. 

The G20 Trade and Investment Ministers’ meeting concluded August 25 in Jaipur, India, with ministers agreeing to five deliverables: the digitalization of trade documents, efforts to increase access to information for MSMEs, endorsement of a G20 standard for mapping global value chains, sharing best practices on professional services Mutual Recognition Agreements (MRAs), and holding a G20 Standards Dialogue in 2023.  U.S. Trade Representation Katherine Tai called for a focus on WTO reforms in advance of the 13th WTO Ministerial Conference in 2024.

India will now host the G20 Leaders Summit September 9-10. President Biden will attend and could possibly meet with Chinese leader Xi Jinping on the sidelines. Ahead of this, U.S. Commerce Secretary Gina Raimondo will start a four-day visit to China, visiting Beijing and Shanghai from August 27 to 30 to meet with senior Chinese government officials and American business leaders. The visit may be contentious as it comes following the issuance of an executive order restricting certain investments into China. Raimondo’s Commerce Department is also finalizing additional restrictions on certain semiconductor related exports, another point of friction. 

In the face of Republican opposition, the State Department is negotiating a six month extension of the U.S.-China Science and Technology Agreement, which expires on August 27. An amendment would add a commitment to limit the agreement to non-security cooperation.

Contact: Pat Sheehy

Government Procurement

The White House’s Office of Management and Budget (OMB) has published its long-awaited guidance on the implementation of the Build America, Buy America (BABA) provisions of the Bipartisan Infrastructure law.  The OMB rules will become effective 60 days from Federal Register publication and are considered guidance rather than regulations since it will be the responsibility of other government agencies to implement the rules. 

The BABA requires that when federal grants are used for infrastructure projects, all “construction materials” must be of U.S.-origin and “manufactured products” must have greater than 55% U.S. content. The OMB final rule confirms that BABA domestic content requirements only apply to non federal projects that are funded with federal grants, thus only to federal finance assistance programs for infrastructure.

The final guidance provides additional definition, clarity and standards of key BABA terms, such as “construction materials,” “manufactured products” and the definition of cost of components and “predominantly of iron and steel.” Finally, the guidance provides an extensive discussion on its international trade agreement implications.  OMB notes that federal financial assistance awards “are generally not subject to international agreements because these… obligations only apply to direct federal government procurement activities.”

Contact: John McDermid

United States-Mexico-Canada Agreement (USMCA) 

Indicating increasing trade tensions between the United States and Mexico, U.S. Trade Representative Katherine Tai announced on August 17 that the United States is establishing a dispute settlement panel under the United States-Mexico-Canada Agreement (USMCA) regarding Mexican restrictions on biotech corn.  USTR is challenging measures set out in Mexico’s February 13, 2023 decree which ban the use of biotech corn in tortillas or dough, with an instruction to Mexican government agencies to gradually substitute —i.e., ban— the use of biotech corn in all products for human consumption and for animal feed. The United States argues that Mexico’s measures are not based on science and undermine Mexico’s USMCA market access commitments.

Additionally, on August 22, USTR invoked procedures under the USMCA to request – for the first time ever – a panel under the agreement’s Rapid Response Labor Mechanism (RRM). This action was initiated due to a labor dispute at a mine in the Mexican state of Zacatecas.  This announcement follows a June request by the United States asking Mexico to review whether workers at the mine were being denied the rights to freedom of association and collective bargaining. 

Another potential trade dispute was avoided this month when the United States welcomed Mexico’s efforts to address global non-market excess capacity in the steel sector amid a surge of imports. On August 15 it was announced that Mexico would raise its tariff on imports of steel from countries without a free trade agreement from 15% to 25% to strengthen its domestic market. The new tariff, effective from August 16, will last until July 31, 2025, for steel products like rebar, wire rod, hot-rolled coil, cold-rolled coil, coated flat steel, rectangular hollow sections, steel tubes, among others. 

Contact: Stephen Ziehm, Liv Leone

BRICS 

The BRICS Summit in Johannesburg concluded August 24 with a notable announcement that the bloc will admit Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates as members. The six new candidates will formally become members on Jan. 1, 2024. The decision to expand both opens a path for future enlargement and reflects a growing appetite for world order to reflect current geopolitical powers. China and Russia remain focused on expansion to counter Western dominance, but Brazil and India have both been strengthening ties with the West. 

A Chinese press release notes that more than 20 countries have submitted applications to join the bloc. It is unclear what shared goals the newly expanded bloc might hope to pursue outside of opposition to the western-led international system as members have sharply different economies and priorities.  However, U.N. Secretary-General Antonio Guterres attended the expansion announcement, reflecting the bloc’s growing influence. He stated at the event that current “governance structures reflect yesterday’s world,” in seeming agreement with the BRICS countries’ ongoing calls for changes to the U.N. and multilateral finance systems.

In a potentially major development, Chinese Leader Xi Jinping and Indian Prime Minister Narendra Modi met on the sidelines of the summit and agreed to take steps to de-escalate tensions at their shared Himalayan border. China has encroached multiple times on territory claimed by India in the area.  

Contact: Pat Sheehy, Alix Hess

Quick takes

  • An in-person negotiating round for the U.S.-Taiwan Initiative on 21st Century Trade concluded in Washington, D.C. on August 18, with the two sides discussing proposed texts covering agriculture, labor, and the environment. Taiwan shared aims to “broaden export opportunities for Taiwan’s agricultural products and service industries, help SMEs expand their international markets, and advance the capabilities of Taiwan’s digital economy” through these negotiations.
  • Senators Mitch McConnell (R-KY) and Senate Agriculture Committee Chair Debbie Stabenow (D-MI) have confirmed that the Farm Bill will not pass before the program expires on September 30. Congress aims to move the legislation later in the year.
  • The Treasury Department and the Internal Revenue Service (IRS) released proposed crypto tax regulations on the sale and exchange of digital assets by brokers in an effort to crack down on tax cheats.
  • The U.S. Department of Agriculture has reported a surge in demand for animal and vegetable oils and fats with the expansion of global biodiesel production. Imports from China are soaring ($290 million in the first six months of 2023, up from around $1 million in all of 2022) as U.S. renewable diesel makers turn to Chinese feedstocks to capitalize on green subsidies.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.5259–H.R.5263 (Slotkin, D-MI) Would increase oversight of the process of mitigating and removing the risks of PFAS contamination.
  • H.R.5255 (Mace, R-SC) Would require every federal contractor to enact vulnerability disclosure policies (VDPs), which requires the reporting of cyber hacking and payment incidents.
  • H.R.5245 (Barr, R-KY) Would enforce congressional supervision on any scientific and technological partnership agreements between the United States and China.
  • H.R.5215 (Johnson, R-SD) Would reinstate country of origin labeling for beef to fall in compliance with WTO rules.
  • H.R.5209 (Neal, R-FL) and (Dunn, R-FL), Would apply export controls and sanctions in efforts by China to introduce genetic mapping.
  • H.R.5199 (Slotkin, D-MI) Would amend the 1998 Agricultural Research, Extension, and Education Reform Act to reauthorize the Specialty Crop Research Initiative.
  • H.R.5188 (Gallagher, R-WI) Would limit presidential authority to adjust imports that are determined to threaten national security.

WHO’S WHO

Arrivals

  • Brendan Danaher, Special Assistant to the President and NEC Deputy Director 
  • Celeste Drake, Deputy Director-General of the International Labor Organization
  • Ella Lipin, Deputy Assistant Secretary of State for International Organization Affairs 
  • Jeff Nesbit, HHS Assistant Secretary for Public Affairs
  • Sven Alkalaj, Ambassador of Bosnia and Herzegovina to the United States

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

UPCOMING EVENTS

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

Any issue areas you would like highlighted? Have a specific monitoring request? Reach out to us.

Alix Hess
In

International Issues Update 2023/31

ON OUR DESKS

  • Updating clients on SEC ESG-related disclosure requirements
  • Assessing new U.S. outbound investment screening  
  • Political risk assessment of potential LATAM business opportunity

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.

The IIU will be on hiatus for the weeks of August 14 and 21.

WIBC DISCUSSIONS

Upcoming events:

  • August 22 (VIRTUAL): Senate Finance Committee Chief International Trade Counsel Sally Laing and Senior International Trade Counsel Virginia Lenahan, Trade priorities in the 118th Congress

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

China

In August 11 remarks, President Biden called China’s economy a “ticking time bomb,” in seeming reference to worsening economic data showing export volumes have fallen 14%. Foreign direct investment in China stands at a 25 year low, and consumer prices suggest a period of possible deflation that could threaten China’s long-term growth prospects.

The United States announced on August 9 a long-awaited executive order requiring screening on outbound investment in the Chinese semiconductor and microelectronics, quantum technology, and AI sectors (see also: Treasury website and fact sheets). Treasury is now charged with establishing implementing regulations and is accepting public comment until September 28 on its advanced notice of proposed rulemaking (ANPRM). The order is more limited in scope than proposed measures included in both the House and Senate versions of the National Defense Authorization Act currently making its way through Congress.  

The Bureau of Industry and Security additionally implemented in August 11 new controls on civilian nuclear exports to China, with little fanfare. The new restrictions impose a licensing restriction on items including depleted uranium, certain graphite and deuterium, and generators and other equipment for nuclear power. Controlled items are used in a variety of non-nuclear related areas, including medicine and certain advanced manufacturing. 

Contact: Patrick Sheehy 

New disclosure requirements

The Securities and Exchange Commission (SEC) released its final cybersecurity disclosure rule that will require public companies and foreign private issuers to disclose material cybersecurity incidents (within four business days after determining a material impact from a cybersecurity incident) on form 8-K, starting December 5 (90 days following the release of the final notice), and to disclose in annual reports for fiscal years ending on or after December 15 2023, material information (S-K, 20-F, and 6-K) regarding their cybersecurity risk management, strategy, and governance.

Following repeated postponements, the SEC is also expected to finalize a final climate-related disclosure rule around October, 2023. SEC’s March 2022 proposed rule received thousands of comments, including many raising concern about clarity and feasibility  of the rule’s requirements, as well as alignment with international standards and requirements. 

Contact: Chris Benscher

Quick takes

  • Commerce and USTR invited stakeholders to participate in in-person listening sessions during the fifth Indo-Pacific Economic Framework for Prosperity’s (IPEF) September 10-16 negotiating round in Bangkok. The agencies are also hosting an August 24 virtual listening session.
  • The United States and Mexico agreed for the first time to a formal course of action to remediate labor complaints in the textile sector under USMCA.
  • Deputy USTR Jayme White raised concerns about a surge in Mexican steel and aluminum imports during an August 10 virtual meeting with Mexican Under Secretary of Economy for Foreign Trade Alejandro Encinas.
  • Registration is open for Commerce’s Business Opportunities in the Americas Conference,  September 16-19 in Reston. 
  • During an August 10 summit in Abuja, ECOWAS leaders discussed responses to the ongoing coup in Niger, agreeing to activate the bloc’s “standby” military force. ECOWAS military chiefs will next meet August 12 in Ghana.
  • Treasury announced on August 9 new sanctions targeting Belarussian regime figures linked to fraud in the 2020 Belarussian elections, as well as sanctions targeting Russian oligarchs linked to the Alfa Group on August 11. 

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.5179 (Tenney, R-NY) Would maintain country of origin markings for imported goods produced in the West Bank or Gaza.
  • H.R.5174 (Ross, D-NC) Would increase U.S.-Moldovan defense cooperation.
  • H.R.5144 (Jackson, R-TX) Would prohibit Federal government use of Tik Tok.

WHO’S WHO

Arrivals

  • Andreas Michaelis, German Ambassador to the United States
  • Martina Anna Tkadlec Strong, U.S. Ambassador to the United Arab Emirates
  • Nisha Desai Biswal, Development Finance Corporation Deputy Chief Executive Officer (Incoming) 
  • Sarah C. Ellerman, Assistant USTR for Southeast Asia and the Pacific

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

UPCOMING EVENTS

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

Alix Hess
In

International Issues Update 2023/30

ON OUR DESKS

  • Assessing the House and Senate versions of the National Defense Authorization Act (NDAA)
  • Mapping and outreach to international organization contacts
  • Analysis of domestic manufacturing requirements for government tax credits
  • Supporting client APEC engagement

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

In case you missed it:

  • July 25: American Institute in Taiwan Chair Laura Rosenberger, Priorities for political and economic engagement with Taiwan
  • July 26: Deputy Assistant Secretary of Commerce for Manufacturing Heather Evans, Advancing U.S. manufacturing competitiveness

Upcoming events:

  • August 22 (VIRTUAL): Senate Finance Committee Chief International Trade Counsel Sally Laing and Senior International Trade Counsel Virginia Lenahan, Trade priorities in the 118th Congress

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

China 

U.S. investment into China is facing mounting scrutiny in the Congress ahead of the Biden administration’s forthcoming executive order restricting certain outbound investment in the PRC. Select China Committee Chair Mike Gallagher (R-WI) wrote to President Biden on August 3 urging the President to consider adopting “core principles” limiting U.S. investment into the PRC in the Executive Order. Gallagher’s proposal goes beyond the limited and sectorally-focused EO contemplated by the administration, calling for restrictions on U.S. capital to “organizations connected to the CCP’s genocide, the CCP’s technological rise, and the Chinese military.”

The Select Committee has also launched an investigation into Blackrock and Morgan Stanley Capital International (MSCI), giving them two weeks to provide lawmakers information on their investments in China and how the firms choose the Chinese companies included in their funds. The committee compared the companies’ funds to those listed on the various sanctions lists including the Uyghur Forced Labor and Prevention Act (UFLPA) Entity List.   Morgan Stanley is facing increased scrutiny from Chinese authorities as well as Chinese authorities raided the firm’s offices in a surprise inspection this week following a downgrading of PRC stocks by the firm.

Other U.S. actions targeting China have continued in advance of the EO. The interagency U.S. Forced Labor Enforcement Task Force (FLETF) published August 1 an updated Uyghur Forced Labor Prevention Act Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China.  The UFLPA instituted a presumption that any goods sourced from the Xinjiang region of China are the product of forced labor and inadmissible to the United States. FLETF is mandated to update its enforcement strategy, which provides guidance to importers, annually. The updates to the UFLPA Strategy include the addition of two more firms to the UFLPA Entity List, which subjects their products, wherever-made, to a presumption that they were made with forced labor. The report also highlights the FLETF’s intent to seek additional resources needed to combat forced labor and enhance collaboration with NGOs and the private sector on enforcement. 

Meanwhile, Chinese export restrictions on gallium and germanium, key critical minerals for semiconductor chip making, came into effect August 1.  Licensing for exports is expected to take multiple weeks. The granting of licenses and other implementing actions of the measures may indicate how far the country is willing to go in retaliating against U.S. export controls on semiconductors to China. China additionally announced controls on the export of drones, effective September 1. 

These measures are being implemented against the backdrop of a flagging Chinese economy. Chinese policymakers reiterated willingness to support their economy on Friday, with Yuan Da, of the National Development and Reform Commission, stating “our next step of action is to strengthen and improve the real economy.” China has held off on major stimulus but announced an easing of entry visa and domestic residency registration requirements, allowing for expedited foreign business travel and improved inter-China migration by workers. 

Contact: Patrick Sheehy

Quick takes

  • The Committee on Foreign Investment in the United States (CFIUS) provided its annual report to Congress noting a record number of investment reviews in 2022, with the Treasury Department noting that the reviews are increasingly complex and result in more national security agreements to resolve the risks identified. 
  • The Commerce Department released a 2022 report by the interagency Titanium Sponge Working Group (TSWG) with recommendations for addressing the U.S. dependence on imported titanium sponge.  The TSWG, set up following a Section 232 national security investigation, concluded that eliminating the 15 percent U.S. tariff on titanium sponge could benefit the domestic titanium industry.
  • A deadline imposed by ECOWAS for the overturning of a coup in Niger passed on Friday with no resolution. ECOWAS, a political and economic union of fifteen West African countries, imposed financial and travel sanctions on Niger. Bloc leaders are now considering a military intervention. 
  • Chilean President Gabriel Boric presented new legislation, described as a “fiscal pact”, to raise tax revenues. The action follows the defeat of a similar tax reform in March. Boric hopes to reform enforcement and raise taxes on firms and high-earning individuals to fund social spending.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.5109 (Gallagher, D-WI) Would impose restrictions on the investment in Chinese companies by tax-exempt entities
  • H.R.5105 (Espaillat, D-NY) Would establish a lending program for Latin America to reaffirm the United States commitment to sustainable and equitable growth and energy security
  • H.R.5081 (Hageman, R-WY) Would prohibit retailers from designating the U.S. as the country of origin of foreign beef
  • H.R.5078 (Feenstra, R-IA) Would strengthen foreign investment oversight in the U.S. agriculture industry
  • H.R.5072 (Banks, R-IN) Would expand U.S. military sales to Taiwan

WHO’S WHO

Arrivals

  • Michael Khoo and David Lim, Lead Attorneys, Justice Department’s Task Force KleptoCapture 
  • Colleen Coffey and Michael Pratt, Finance Co-directors, Joe Biden for President
  • Jessica Porter, Grassroots Fundraising Director, Joe Biden for President
  • Derek Chollet, Undersecretary of Defense for Policy nominee, Department of Defence
  • Ethan Zindler, Climate Counselor, Treasury Department
  • Timothy Betts, Acting Deputy Assistant Secretary for the Directorate of Defense Trade Controls
  • Joseph Cristofaro, Director of the Bureau of Industry and Security’s Sensors and Aviation Division

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

UPCOMING EVENTS

  • ASEAN East Asia Summit Senior Officials’ Meeting(Seattle), August 5
  • APEC High-level Meeting on Health and the Economy (Seattle), August 6
  • U.S. Trade Mission to South Africa, Ghana and Nigeria, August 6-15
  • Anti-Deforestation Summit of the Amazon Cooperation Treaty Organization (Belem), August 8-9
  • OPEC Monthly Report, August 10
  • G20 Anti-corruption ministers’ meeting (Kolkata), August 12
  • APEC’s Energy Ministers’ Meeting, August 15-16
  • Zimbabwe general election, August 23
  • Gabon general election, August 26

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

Alix Hess
In

International Issues Update 2023/29

ON OUR DESKS

  • Briefing on U.S. relations and objectives in Latin America
  • Assessing Congressional appropriations progress and the National Defense Authorization Act (NDAA)
  • Updating on PFAS regulatory and research developments, including upcoming global cancer hazard 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

In case you missed it:

  • July 25: American Institute in Taiwan Chair Laura Rosenberger, Priorities for political and economic engagement with Taiwan
  • July 26: Deputy Assistant Secretary of Commerce for Manufacturing Heather Evans, Advancing U.S. manufacturing competitiveness

Upcoming events:

  • August 22 (VIRTUAL): Senate Finance Committee Chief International Trade Counsel Sally Laing and Senior International Trade Counsel Virginia Lenahan, Trade priorities in the 118th Congress

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

China 

After a period of unexplained absence from the public stage, China’s Foreign Minister and former ambassador to the United States Qin Gang was removed from his position and replaced by Wang Yi, now double-hatted as both the head diplomat for the Chinese Communist Party and the Foreign Minister. While the move is unlikely to herald policy shifts, it cements Wang’s status as China’s preeminent foreign policy leader. 

Chinese export restrictions on gallium and germanium entered into effect August 1, in retaliation for U.S. controls on semiconductors and chip making equipment. Whether China grants export licenses and to whom remains to be seen and will indicate how far China is willing to go in retaliation against the United States. China’s export control precedents have had mixed results – restrictions on rare earths exports increased prices for consumers but also drove efforts to develop alternative supplies. 

Scrutiny of China in the U.S. Congress remained intense right up to summer recess. The House Permanent Select Committee on Intelligence released an assessment of China’s support for Russia’s war in Ukraine, which includes financial arrangements that lessen the impact of sanctions, as well as supply of dual-use goods. While the report does not disclose any transfer of weapons, it could foretell sanctions actions. 

In a July 26 House Select Committee hearing, Chairman Mike Gallagher (R-WI) emphasized China’s plan to “acquire our best technology for virtually free [via theft and coercion] and use it for their own malign purposes.” In testimony to a July 26 Senate Finance Committee hearing, Under Secretaries of State and Treasury Jose Fernandez and Jay Sharmbaugh emphasized balancing “targeted actions to secure our national security interests” with maintaining access to the Chinese market. 

Meanwhile, the Senate Commerce Committee passed the Combating Human Rights Abuses Act of 2023, which would require the Commerce Department to provide written risk guidance and include human rights in “counseling services” for firms operating in China and other jurisdictions with significant human rights abuses.

Contact: Pat Sheehy

Investment policy

As the Biden administration continues to delay a long-awaited executive order on outbound investment review, the Senate this week approved the Outbound Investment Transparency Act as an amendment to the National Defense Authorization Act (NDAA).  

Co-sponsored by Senate Finance Committee members Bob Casey (D-PA) and John Cornyn (R-TX), the legislation would require U.S. firms to notify the Treasury Department of planned high-tech investments in foreign countries of concern, specifically the People’s Republic of China, Russia, Iran, and North Korea.  

The Senate also approved an NDAA amendment introduced by Senators Jon Tester (D-MT) and Mike Rounds (R-SD) called the Promoting Agriculture Safeguards and Security Act, which would allow the interagency Committee on Foreign Investment in the United States (CFUIS) to prohibit China, Russia, Iran and North Korea from purchasing U.S. farmland.  The Senate passed its version of the NDAA (S. 2226) on July 27 before leaving for the August recess.  The House previously passed its own version of the NDAA, setting up a fall conference committee, but has passed only one of twelve pending appropriations bills. 

Contact: Stephen Ziehm

Quick takes

  • President Biden welcomed Italian Prime Minister Giorgia Meloni to the White House on June 27, and the two leaders pledged to continue political, military, financial, and humanitarian assistance to Ukraine and also referred to the importance of maintaining peace and stability across the Taiwan Strait.  
  • The State Department released its 2023 Investment Climate Statements, providing up-to-date information on investment conditions in more than 1​65 countries and economies.
  • The Senate Commerce Committee approved the Country Of Origin Labeling Online Act, which has been opposed by some online sellers as well as by economic analysts who argue the bill (like other COOL legislation in the past) is overly burdensome and potentially violates WTO obligations.
  • A July 26 advisory issued by the Treasury, Commerce, and Justice departments incentivizes disclosures and outlines leniency for disclosed conduct related to sanctions, export controls, and national security violations. Commerce and Treasury also formalized enforcement cooperation, which is likely to increase scrutiny and fines.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.4825 (Dean, D-PA) Would impose sanctions related to the Russian oil price cap policy
  • H.R.4894 (Orden, R-WI) Would reauthorize dairy business innovation initiatives  
  • H.R.4996 (Foster, D-IL) Would establish a Critical Materials Processing Technology Testbed Capability
  • H.R.5021 (McCollum, D-MN) Would prohibit the sale or transfer of critical minerals to foreign entities of concern

Senate

  • S.2510 (Peters, D-MI) Would improve supply chain resiliency for critical drug products and active pharmaceutical ingredients
  • S.2545 (Hassan, D-NH) Would require USTR to regularly monitor and assess the risk of industrial subsidies provided by the PRC 
  • S.2551 (Rubio, R-FL) Would impose export controls and sanctions to address the security threat posed by the genetic mapping efforts of the PRC

WHO’S WHO

Arrivals

  • Ayodele Okeowo, Commerce CHIPS for America Director of Intergovernmental Affairs
  • Hannah R. Garden-Monheit, NEC Director of Competition Council Policy
  • Joshua P. Zoffer, Special Assistant to the President for Economic Policy
  • Medha V. Raj, White House Office of Domestic Climate Policy Chief of Staff

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

UPCOMING EVENTS

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

Alix Hess
In

International Issues Update 2023/28

ON OUR DESKS

  • Arranging client events for APEC
  • Supporting corporate survey outreach to international organizations
  • Providing input ahead of Section 301 China tariffs 4-year review
  • Coordinating U.S. agriculture input ahead of multilateral food systems and climate events

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

Upcoming events:

  • July 25: American Institute in Taiwan Chair Laura Rosenberger, Priorities for political and economic engagement with Taiwan
  • July 26: Deputy Assistant Secretary of Commerce for Manufacturing Heather Evans, Advancing U.S. manufacturing competitiveness

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

China

The latest in a series of senior U.S. visitors to China, U.S. Climate Envoy John Kerry traveled to China July 16-19 for detailed climate negotiations and meetings with Chinese Vice President Han Zheng, Senior diplomat Wang Yi, Premier Li Qiang, and Climate Envoy Xie Zhenhua. Similar to recent visits to China by Secretaries of State Anthony Blinken and Treasury Secretary Janet Yellen, Secretary Kerry’s visit failed to lead to any breakthroughs, but both sides agreed to continued dialogue. 

Not helped by news that China-based hackers infiltrated senior U.S. officials’ emails (including that of U.S. Ambassador to China Nick Burns), attention continues to focus on tension and competition in the bilateral relationship. The House China Select Committee hosted: 

  • A July 17 hearing on “Leveling the Playing Field: How to Counter the Chinese Communist Party’s Economic Aggression” with former USTR Robert Lighthizer and others, who called for additional trade restrictions and defended tariffs imposed under the Trump administration.
  • A July 19 “thunderdome debate” on revoking China’s Permanent Normal Trade Relations status and imposing sweeping export and investment controls.
  • A July 20 hearing featuring testimony from senior Defense, State and Commerce officials. House Select Committee Chair Mike Gallagher (R-WI) criticized “interagency purgatory” and “zombie engagement” for preventing new sanctions following the Chinese aircraft incidents earlier this year. 

The China Select Committee has also reportedly subpoenaed several venture capital firms, seeking information on investments in advanced Chinese technology, to inform new legislation barring similar investments. The White House continues to consider an executive order imposing a review process similar on outbound investment. China’s new 31-point action plan for private sector support is likely to drive further concern by U.S. lawmakers and officials. 

Contact: Pat Sheehy

Russia 

Russia withdrew on July 17 from the Black Sea Grain Deal, demanding most sanctions relief as a precondition of resuming participation. While Ukrainian President Volodymyr Zelenskyy has said he intends to continue exports via Odessa, Russia has threatened that cargo ships leaving Odessa will now be considered valid military targets. The withdrawal could disrupt Russian relations with China, which has been a key beneficiary of the deal, and with Africa just ahead of a summit with African leaders next week in Saint Petersburg. 

State and Treasury announced new sanctions targeting almost 120 individuals in total, including from the Russian defense, engineering, high tech, and energy sectors, as well as Kyrgyz and UAE actors linked to smuggling electronic components. The July 19 inaugural meeting of the U.S.-UK Strategic Sanctions Dialogue focused on coordination in imposing and enforcing sanctions measures.  

The Bureau of Industry and Security released July 19 guidance on how to best file applications to export medical items to Russia, to enable interagency reviewers to accurately identify and quickly process shipments of least concern. 

Contact: Pat Sheehy

European Union 

U.S. Trade Representative Katherine Tai and EU Commission Executive Vice President Valdis Dombrovskis continued on July 20 their frequent meetings on the proposed Global Arrangement for Sustainable Steel and Aluminum, in what Ambassador Tai characterized as a “direct and candid” exchange. Dombrovskis said prior to the meeting that the two sides hope to meet an October deadline to prevent the reimposition of U.S. Section 232 tariffs and EU retaliation, but he warned the EU will not back any agreement it feels violates WTO rules.  

Also on July 20, the European Council authorized the European Commission to proceed with negotiations on a U.S.-EU Critical Minerals Agreement (CMA), approving negotiating directives related to strengthening supply chains for electric vehicle batteries while promoting environmental and labor standards. The agreement, if reached, would be intended to provide the EU with an equivalent status to U.S. free trade agreement partners for the purpose of the clean vehicle tax credits under the Inflation Reduction Act (IRA).

The Commerce Department launched on July 17 the Data Privacy Framework (DPF) program website, enabling eligible U.S. companies to self-certify their participation in the EU-U.S. Data Privacy Framework, facilitating cross-border transfers of personal data in compliance with EU law.

Contact: Stephen Ziehm

Quick takes

  • The Senate passed by unanimous consent a bill codifying Congressional approval of the Biden administration’s initial trade agreement with Taiwan and directing USTR to provide negotiating texts of any future agreements with Taiwan to the Senate Finance and House Ways & Means Committees. The administration has contended that the U.S.-Taiwan Initiative on 21st-Century Trade deal does not require Congressional approval. 
  • The State Department announced a new semiconductor manufacturing partnership with Panama, to begin with a review of Panama’s current semiconductor ecosystem, regulatory framework, and workforce and infrastructure needs. A similar effort with Costa Rica is under consideration. 
  • A July 20 Government Accountability Office (GAO) report found that Customs and Border Protection (CBP) allowed importers to incorrectly claim exclusions from Section 232 steel and aluminum exclusions. The report recommends stricter controls and possible steps to recover duties owed by importers retroactively.
  • Indo-Pacific Economic Framework partners concluded on July 15 in South Korea their fourth round of negotiations, announcing progress on Pillars I (Trade), III (Clean Economy), and IV (Fair Economy), as well as advancement of the legal review of the proposed IPEF Supply Chain Agreement (Pillar II).
  • Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Alexis Taylor will lead an agribusiness trade mission to Malaysia and Singapore October 30-November 3, and USDA is accepting participation applications until August 2. 

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.4806 (Santos, R-NY) Would prohibit foreign nations from owning certain facilities, buildings, and land
  • H.R.4729 (Connolly, D-VA), Would authorize negotiation and conclusion and to provide for congressional consideration of a tax agreement between the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO)
  • H.R.4723 (Wagner, R-MO), Would provide for sanctions with respect to foreign persons undermining the Dayton Peace Agreement or threatening the security of Bosnia and Herzegovina
  • H.R.4691 (Self, R-TX), Would provide for congressional review of actions to terminate or waive sanctions imposed with respect to Iran
  • H.R.4673 (Banks, R-IN), Would withdraw normal trade relations treatment from products of the PRC
  • H.R.4665 (Diaz-Balart, R-FL), Department of State, Foreign Operations, and Related Programs Appropriations Act for FY 2024

Upcoming Congressional Hearings

Senate

WHO’S WHO

Arrivals

  • Andrea Goldstein, HHS Principal Deputy Assistant Secretary for Administration
  • Monte Hawkins, NSC Special Assistant to the President and Senior Director for Transborder
  • Sarah Weinstein, Commerce Director of Public Affairs 
  • Tim Stumhofer, Treasury Office of the Comptroller of the Currency, Director of Climate Risk

Departures

  • Anabel Gonzalez, WTO Deputy Director General

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

UPCOMING EVENTS

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

Alix Hess
In

International Issues Update 2023/27

ON OUR DESKS

  • Advising on adaptation to U.S.-China economic competition 
  • Identifying key contact points in multilateral and international organizations 
  • Assessing U.S.-EU critical minerals negotiations

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

In case you missed it:

  • July 12: Deputy Assistant Secretary of Commerce for Europe and Eurasia David De Falco, Commercial engagement with the EU and Ukraine’s reconstruction
  • July 13: Lead Negotiator for UN Plastics Pollution Treaty at U.S. Department of State Larke Williams, Ongoing plastics negotiations and opportunities for private sector engagement

Upcoming events:

  • July 25: American Institute in Taiwan Chair Laura Rosenberger, Priorities for political and economic engagement with Taiwan
  • July 26: Deputy Assistant Secretary of Commerce for Manufacturing Heather Evans, Advancing U.S. manufacturing competitiveness

REMINDER: Our client portal, WIBC calendar, and other resources are available at redflag.global/washington.

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

YOU NEED TO KNOW

NATO / Europe

President Biden, attending the NATO Summit this week in Vilnius, Lithuania, said in a speech that NATO is stronger, more energized, and more united than ever in its history, citing the accession of Finland to the alliance and an agreement with Türkiye to allow for Sweden’s membership.   He stated that the U.S. commitment to Ukraine “will not waver” and that “we will stand for liberty and freedom today, tomorrow, and for as long as it takes.”  

The G-7  separately issued a joint statement pledging security guarantees to Ukraine, including “swift and sustained security assistance, modern military equipment across land, sea and air domains, and economic assistance.” NATO members also agreed to a new partnership with Japan, opening new liaison offices in Tokyo and Brussels. 

President Biden also participated in the third U.S.-Nordic Leaders’ Summit in Helsinki, Finland on July 13, which addressed climate and technology cooperation in addition to continued support for Ukraine. 

Contact: Stephen Ziehm

China

Concluding travel to China, Secretary of the Treasury Janet Yellen remarked on July 8 that the Biden administration seeks “a future of healthy economic competition between our countries,” noting that “a decoupling of the world’s two largest economies would be disastrous for both countries and destabilizing for the world. And it would be virtually impossible to undertake.”   

Ahead of a planned visit by Special Presidential Envoy for Climate John Kerry to China for climate discussions on July 16-19, the House Foreign Affairs Committee held a hearing on July 13 at which Republicans sharply criticized the administration for not holding China to account on reducing carbon emissions.   House Foreign Affairs Committee Chair Rep. Michael McCaul (R-TX) announced July 12 he has subpoenaed the State Department to determine the veracity of reports claiming planned sanctions were delayed following the overflight of the United States by a Chinese spy balloon. McCaul will likely seek to pressure the administration to resume any paused sanctions.

The House Select Committee on the Chinese Communist Party also held a hearing on risks to U.S. businesses operating in China, at which Committee Chair Mike Gallagher (R-WI) highlighted raids on U.S. firms’ Chinese operations by Chinese authorities and the passage of new Chinese national security legislation criminalizing business information gathering and due diligence activities as key threats.

The Congressional Executive Committee on China held a separate hearing on corporate complicity in China’s human rights violations. Undersecretary for Policy Robert Silvers of the Department of Homeland Security testified on the implementation of the Uyghur Forced Labor Prevention Act (UFLPA), noting in his testimony that DHS hopes to expand its enforcement of the UFLPA and expects to make new additions to the “entity list” of blacklisted firms. 

On June 13,  Germany announced its first-ever Strategy on China, stating that “China has changed…As a result of this and China’s political decisions, we need to change our approach to China.” The strategy calls for continued cooperation and engagement with China while stating “de-risking is urgently needed” and acknowledging a “systemic rivalry” stemming from disagreements on “ principles governing the international order.”   The document identifies dependencies in pharmaceuticals, critical minerals, and information technology as being of key concern. 

Contact: Pat Sheehy

ASEAN 

Secretary of State Antony Blinken participated in a conference with ASEAN countries on July 14 following the bloc’s annual foreign ministers’ meeting.  Blinken highlighted the U.S. Indo-Pacific Strategy as underscoring ASEAN’s centrality, citing the need to uphold the freedom of navigation in the South and East China Seas and maintain peace and stability across the Taiwan Strait.

In a joint communique, ASEAN foreign ministers expressed concern on the intensifying geopolitical tensions in the region and cited the need to further promote the ASEAN Outlook on the Indo-Pacific  (AOIP) in interactions with partners.  The bloc also discussed the ongoing crisis in Myanmar, having pushed for a “five point consensus” solution to the conflict since 2021. Thailand has started parallel dialogues with Myanmar in an attempt to move a resolution forward. 

In addition to meetings with the United States, ASEAN also held post-ministerial meetings with representatives from Russia, China, and other third countries.  Secretary Blinken met with Chinese Foreign Affairs Director Wang Yi on the sidelines of the event on June 13 as “part of ongoing efforts to maintain open channels of communication to clarify U.S. interests across a wide range of issues and to responsibly manage competition by reducing the risk of misperception and miscalculation.” 

ASEAN is expected to announce efforts to conclude an ASEAN-China non-aggression pact that would attempt to defuse some tensions over maritime border disputes in the South China Sea.

Contact: Pat Sheehy

Quick takes

  • The European Union announced its approval of a new “U.S. -EU Data Privacy Framework” enabling trans-Atlantic personal data transfers. Previous agreements had been invalidated in EU courts due to a disparity between standards of data protection, imperiling U.S. firms’ ability to operate in the EU. 
  • As part of the U.S.-Africa Business Summit, the White House announced 75 new deals between the United States and African countries for a total estimated value of $5.7 billion in two-way trade and investment. Botswana President Mokgweetsi Masisi called for a renewal of the AGOA trade preferences program, which expires in 2025. 
  • The House of Representatives passed its version of the National Defense Authorization Act (NDAA) in a party-line vote on July 14.  The House bill would au­tho­rize an additional $300 mil­lion in se­cu­rity as­sistance for Ukraine and provide $600 mil­lion over the Biden ad­min­is­tration’s request for military spending on threats in the Indo-Pa­cific. 
  • The U.S. Export-Import Bank announced that it will offer longer repayment terms and additional flexibilities beginning July 15 for most transactions, including climate projects, nuclear energy, technologies offering climate change mitigation benefit, and climate change adaptation projects. 
  • Members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting announced an agreement to extend a moratorium on digital services taxes through 2024.  Canada, however, announced it would move forward with the imposition of a Digital Services Tax (DST) in 2024.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.4548 (James, R-MI) Would require a national strategy to secure U.S. supply chains involving critical minerals sourced from the Democratic Republic of Congo
  • H.R.4554 (McCormick, R-GA) Would require a report on international assistance for Ukraine
  • H.R.4559 (Pocan, D-WI) Would require fair pay for workers employed by companies who provide meat, meat products, poultry, poultry products, and processed food to the Federal Government
  • H.R.4612 (Randy, R-IA) Would provide technical assistance to improve infrastructure in foreign markets for U.S. agricultural products

Senate

  • S.2226 (Reed, D-RI) National Defense Authorization Act for Fiscal Year 2024
  • S.2289 (Peters, D-MI) Would assess foreign influence on the National Industrial Security Program
  • S.2293 (Peters, D-MI) Would establish federal officers, council and governance board for AI
  • S.2318 (Ernst, R-AI) Would develop a strategy for establishing ground-based theater-range missiles in the Indo-Pacific region

Upcoming Congressional Hearings

House

Senate

WHO’S WHO

Arrivals

  • Dan Watson, DHS Assistant Secretary for Public Affairs
  • Jared Bernstein, Chairman at Council of Economic Advisers
  • Kelly Razzouk, U.S. Mission to the UN Chief of Staff for Policy (Acting) 
  • Raven Bukowski Stein, National Security Council Director for Legislative Affairs
  • Suzanna Fritzberg, Deputy Assistant Secretary of Treasury for Capital Access

Departures

  • Colin Kahl, Under Secretary of Defense for Policy

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

UPCOMING EVENTS

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

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