Skip to main content
Category

Newsletter

Alix Hess
In

International Issues Update

ON OUR DESKS

  • Advising on U.S. forced labor enforcement
  • Developing client priorities with regard to U.S. and EU critical minerals developments
  • Analyzing ITC report on Section 232 and Section 301 tariffs, as well as U.S. Court of International Trade finding against industry challenges to Section 301

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:

  • March 28: Deputy Assistant Secretary of State for North America Rachel Poynter, North American political and economic cooperation

REMINDER: Our client portal, WIBC calendar, and other resources, are now available at redflag.global/washington. Contact Alix Hess for password.

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

YOU NEED TO KNOW


China

Visiting Russia for the first time since the start of the war in Ukraine, Chinese President Xi Jinping called the trip one of “friendship, cooperation and peace.” Xi’s stated priorities for the relationship with Russia include investment and economic cooperation in energy, technology, agriculture, and industry, as well as people-to-people and cultural exchanges. 

While the two sides touted their close friendship, Xi notably stopped short of previous descriptions of a “no limits friendship.” China also declined to approve new gas transport infrastructure that could serve as a lifeline for Russian energy exports. Following the meeting, President Putin called for using the Chinese yuan as the currency of choice for payments between Russia and Asia, Africa, and Latin America.

The United States announced on March 23 that Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo plan to visit China in the coming months despite expected new measures from both agencies restricting U.S. investment in and exports to China. The administration is also preparing for a call between Presidents Biden and Xi in the near future and may at some stage reschedule Secretary of State Antony Blinken’s canceled visit to China.

Contact: Ethan Knecht and Patrick Sheehy

U.S. trade policy

Members of both parties in Congress critiqued different aspects of the Biden administration’s “worker-centered” trade policy during testimony this week by U.S. Trade Representative Katherine Tai. Ahead of a March 24 House Ways and Means hearing, Trade Subcommittee Chair Adrian Smith (R-NE) led a House Republican letter calling for a more aggressive policy to compete with China, a message echoed by Ways and Means Chair Jason Smith (R-MO) in his opening statement at the hearing.

Senate Finance Committee Chair Ron Wyden (D-OR) challenged the administration’s “go it alone” trade policy, advocating for greater transparency and consultation on planned critical minerals trade agreements and negotiations for the Indo-Pacific Economic Framework. The second round of IPEF negotiations concluded this week in Bali. Summaries released by USTR indicate that discussions included agriculture, domestic services regulation, customs and trade facilitation, and good regulatory practices.  

Contact: Steve Ziehm

Western Hemisphere

In his first visit to Canada since taking office (a visit described by some as “overdue”), President Biden is expected to highlight the “mutual benefits” of the Inflation Reduction Act, the CHIPS and Science Act, and the U.S.-Mexico-Canada Agreement, including for promoting prosperity and clean energy. The United States and Canada are also reported to have reached an agreement on dealing with illegal border crossings.

Traveling in the region, Under Secretary of State for Economic Growth, Energy, and the Environment Jose Fernandez met with Brazil’s foreign, environmental, health, economic and financial affairs ministers to discuss a wide range of topics, including environmental issues like plastics pollution, global health supply chain resilience, critical minerals, food security, and energy. Fernandez said that discussions included the Americas Partnership for Economic Prosperity, which State Department officials have previously said the United States aims for Brazil to join.

Under Secretary Fernandez also hosted in Panama the first ministerial meeting of the Economic Health Dialogue of the Americas. No deliverables were announced during the meeting, but the Dialogue intends to help Western Hemisphere governments coordinate medical supply chains and to streamline distribution and regulation networks to be better prepared for future pandemics.

Contact: Steve Ziehm and Ethan Knecht

Quick takes

  • USAID launched a new policy framework identifying five agency priorities: conflict and food insecurity, climate change, corruption, health care systems, and barriers to inclusive growth and equitable opportunity. The framework calls for embracing new partnerships, including with the private sector, and investing in USAID’s enduring effectiveness.
  • In March 23 remarks at the Center for Strategic and International Studies, outgoing World Bank President David Malpass warned about increasing shortfalls of funds for education, nutrition, health care, and debt service in developing countries and outlined new approaches to increasing capital flows.
  • Among other conclusions, the 2023 Economic Report of the President argued that policies must balance the benefits of economic ties with the risks to economic and national security such ties can entail.  
  • Commerce released proposed national security guardrails that bar recipients of CHIPS Act funding from expanding or partnering with entities in China; Treasury released related guidance on CHIPS tax credits. 
  • In a Technical Advisory Committee meeting, Commerce warned that U.S. interagency authorities are ramping up enforcement on Russia export controls and financial sanctions. Early investigation targets reportedly include Credit Suisse, UBS, and multiple other U.S. banks for violations of financial sanctions.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.1635 (Kiggans, R-VA) Would increase higher education funding for the Philippines.
  • H.R. 1704 (Green, R-TN) Would reduce dependence on Chinese manufacturing. 
  • H.R. 1676 (Green, R-TN) Would allow expensing of money paid to move business property from China to the United States.
  • H.R. 1755 (Kelly, R-MS) Would extend normal trade relations treatment to products of Uzbekistan.
  • H.R. 1714 (Mast, R-FL) Would prevent the provision of social media services to individuals and entities on the Specially Designated Nationals List as well as given individuals and entities from China.

Senate

  • S.970 (Wicker, R-MS) Would create a China Economic Data Coordination Center within the Department of Commerce’s Bureau of Economic Analysis.
  • S.968 (Scott, R-FL) Would prohibit the importation of solar panels built in China.
  • S.958 (Lankford, R-OK) Would modify the Trade Act of 1974’s annual reporting requirements to include an analysis of national security and defense impacts.
  • S.947 (Kennedy, R-LA) Would lower energy costs by increasing energy production and exports. 
  • S.929 (Booker, D-NJ) Would allow federal foreign assistance funds to be used for comprehensive reproductive healthcare services.
  • S.908 (Barrasso, R-WY) Opposes China’s receipt of assistance from multilateral development banks.
  • S.906 (Hawley, R-MO) Would withdraw normal trade relations treatment from Chinese-made goods.

Upcoming Congressional Hearings

House

Senate

WHO’S WHO

Arrivals

  • Mr. Bill Busis, Deputy Assistant USTR for Monitoring and Enforcement
  • Ms. Emily Mendrala, NSC Coordinator for the Southwest Border and Senior Advisor on Migration
  • Mr. Eric Van Nostrand, Acting Assistant Secretary of Treasury for Economic Policy
  • Ambassador Kevin Rudd, Australian Ambassador to the United States 
  • Ms. Lisa Rosen, World Bank Vice President for Ethics and Internal Justice
  • Mr. Nicholas Berliner, NSC Senior Director for Russia and Central Asia

Departures

  • Dr. Karen Donfried, Assistant Secretary of State for European and Eurasian Affairs

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

UPCOMING EVENTS

  • Cuban Parliamentary Elections, March 26
  • Vice President Harris travels to Ghana, Tanzania, and Zambia, March 26-April 1
  • Congress is in session, March 27-31
  • Summit for Democracy (Virtual), March 28-30
  • G20 Trade & Investment Working Group (Mumbai), March 29-30
  • Taiwanese President Tsai “transits” in New York City, March 30

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

Alix Hess
In

International Issues Update

ON OUR DESKS

  • Briefing client executives on trends in export controls and China derisking 
  • Coordinating interagency outreach on China Section 301 tariffs
  • Analyzing the impact of the Canadian clean fuel standard

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:

  • March 28: Deputy Assistant Secretary of State for North America Rachel Poynter, North American political and economic cooperation

IMPORTANT:   Please see our new website at redflag.global/washington, where you can also access our client portal.  We have updated client portal access passcodes for the new website. Contact Alix Hess for access information.

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

YOU NEED TO KNOW

Indo-Pacific

President Biden hosted UK Prime Minister Rishi Sunak and Australian Prime Minister Anthony Albanese on March 13 in San Diego to announce the details of the AUKUS agreement on security cooperation and defense procurement. The AUKUS agreement provides for the transfer of nuclear-powered submarine propulsion technology to Australia, as well as cooperation on a variety of shared security challenges. The United States will transfer Virginia class nuclear submarines in 2030, followed by the later joint construction of a new class of submarines termed SSN-AUKUS. 

China and Russia both denounced the agreement as risking nuclear proliferation. The agreement contains no provisions for the transfer of nuclear arms and the International Atomic Energy Agency has confirmed that it is in alignment with the Treaty on the Non-Proliferation of Nuclear Weapons, provided certain safeguards are observed. The agreement comes as Chinese President Xi Jinping plans to travel to Moscow next week to meet with President Vladimir Putin. The agenda for the meeting has not been announced but may feature enhanced security cooperation. 

Japan and South Korea’s leaders met in Tokyo together for a bilateral summit on March 16-17, the first time a South Korean president has visited Japan in 12 years. The two leaders agreed to resume regular dialogues and to remove export controls and other trade restrictions put in place in 2019. The rapprochement between two major allies could lead to enhanced trilateral cooperation with the United States.  South Korean President Yoon Suk Yeol is set to visit Washington for a state visit on April 26. 

Contact: Pat Sheehy, Ethan Knecht

Latin America

The State Department emphasized cooperation with Brazil to counter Chinese influence in Latin America during a Senate Foreign Relations Committee hearing on March 15. Assistant Secretary of State for Western Hemisphere Affairs Brian Nichols and Deputy Special Envoy for Climate Richard Duke focused on efforts to counteract malign foreign influence, facilitate trade, respond to climate change, and improve the strength of Brazil’s democracy.  A State Department spokesperson commented that the Biden administration would like Brazil to join the U.S.-led Americas Partnership for Economic Prosperity (APEP) negotiation, remarking that the economic initiative without Brazil would be considered “incomplete”.  

The hearing comes in advance of Under Secretary of State Jose Fernandez’s trip to Colombia, Panama, and Brazil next week, where he is expected to discuss “cooperation in clean energy, health, resilient supply chains, sustainable agriculture, labor, and environmental protection” with Brazilian counterparts. Nichols also mentioned U.S. plans to explore a critical mineral partnership with Brazil during the visit. Finance Committee Chair Robert Menendez (D-NJ) is planning a congressional delegation visit to the region in April. 

Contact: Chris Benscher, Ethan Knecht

Plastics

The United States has joined a WTO Dialogue on Plastics Pollution and Environmentally Sustainable Plastics as a co-sponsor.   The Dialogue, which held a meeting on March 13, aims to develop a set of policy recommendations to reduce plastics pollution and encourage the adoption of substitute re-use models and sustainable solutions to harmful plastic products.  This initiative coincides with the UN Environment Programme’s (UNEP) negotiation to establish an international legally binding instrument on plastic pollution.   The Dialogue intends to produce outcomes for the WTO’s 13th Ministerial Conference (MC13) in February 2024.  The next meeting of the Dialogue is scheduled for April 27, which will include a joint workshop with UNEP on reducing the use of harmful plastic products.

At a special session of the WTO’s Committee on Technical Barriers to Trade (TBT) on March 7, WTO members shared best practices on the regulation of plastics.  While discussing national and regional perspectives, the session also addressed international developments to minimize plastics pollution and plastics waste in the environment.  The TBT Committee also held a thematic session on regulatory cooperation between members on climate change, which highlighted the importance of harmonization of regulations and ensuring effective participation of developing countries in international standard-setting processes in the area of trade and climate change.

Contact: Stephen Ziehm

Quick takes

  • The Department of Defense announced the creation of a new Joint Production Accelerator Cell within its procurement office dedicated to rapidly expanding arms production when needed, drawing on lessons from supplying arms to Ukraine.  
  • The European Commission announced new proposals to advance European competitiveness in the clean-energy transition, including a Net-Zero Industry Act and a Critical Raw Materials Act.  The proposals aim to scale up the EU manufacture of key carbon neutral technologies and to ensure secure, sustainable and competitive supply chains.
  • Ahead of a possible early harvest agreement in the negotiation of the U.S.-Taiwan Initiative on 21st Century Trade, USTR issued summaries of proposals tabled on the topics of customs administration and trade facilitation, good regulatory practices, services domestic regulation, anticorruption, and small- and medium-sized enterprises.
  • Honduran President Xiomara Castro announced that the country would seek to establish diplomatic relations with Beijing and no longer recognize Taiwan. The announcement comes in advance of Taiwan President Tsai Ing-wen’s trip to Guatemala and Belize later this month, when she is expected to have a layover in the United States to meet House Speaker Kevin McCarthy and deliver a speech in New York. 
  • The International Criminal Court issued an arrest warrant for Russian President Vladimir Putin on March 17, on the grounds that he bears individual criminal responsibility for the abduction and deportation of Ukrainian children to Russia. Russia has publicized these abductions, characterizing them as patriotic adoptions of abandoned children. The action follows a March 16 report by a UN commission of inquiry, which determined that none of the deportations were justified under international law.
  • The Department of Homeland Security (DHS) hosted a Forced Labor Technical Expo on March 14-15, announcing new efforts to aid in compliance with the Uyghur Forced Labor Prevention Act (UFLPA), including a dashboard with enforcement statistics. DHS is adopting new procedures to warn importers when they file import paperwork for shipments possibly subject to the law.  Effective March 18, importers will be required to submit the postal code of Chinese manufacturers.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.1569 (Waltz, R-FL) Would prohibit issuing leases to Chinese affiliated entities. 
  • H.R.1563 (Chip, R-TX) Would prohibit contributions to the UN Human Rights Council.
  • H.R.1546 (Jackson, R-TX) Would prohibit U.S. funding to implement obligations under the World Health Organization’s Global Pandemic Treaty.

Senate

  • S.872 (Cotton, R-AR) Would identify and restrict the influence of foreign social media entities in the United States. 
  • S.864 (Scott, R-FL) Would require the Securities and Exchange Commission to make it mandatory for companies to report the sourcing and due diligence used to avoid selling products utilizing forced labor in Xinjiang, China. 
  • S.863 (King, I-ME) Would establish a temporary commission to develop a whole-of-government China strategy.
  • S.860 (Scott, R-FL) Would require an annual report on U.S. portfolio investments in China.
  • S.852 (Scott, R-FL) Would prohibit security investments that finance certain Chinese companies and expand OFAC’s Chinese companies list. 
  • S.831 (Merkley, D-OR) Would better address transnational repression by foreign governments against private individuals. 
  • S.826 (Manchin, D-WV) Would facilitate the development of a whole-of-government strategy for nuclear cooperation and nuclear exports.
  • S.814 (Durbin, D-IL) Would encourage a visa waiver program for Romania.
  • S.770 (Blackburn, R-TN) Would provide for loans and leases of defense articles for Taiwan.
  • S.768 (Kennedy, R-LA) Would require higher education institutions to disclose ties to the Chinese government.

Upcoming Congressional Hearings

House

Senate

WHO’S WHO

Arrivals

  • Mr. Brendan Owens, Assistant Secretary of Defense for Energy, Installations and Environment
  • Mr. Brent Neiman, Deputy Under Secretary of the Treasury for International Affairs
  • Ambassador Eric Garcetti, U.S. Ambassador to India
  • Ms. Erin Simpson, Executive Director of the DOD Joint Production Acceleration Cell
  • Ambassador Laurent Billi, French Ambassador to the United States
  • Mr. Steven Benjamin, White House Senior Advisor For Public Engagement

Departures

  • Mr. Gerry Petrella, Policy Director to the Senate Majority Leader
  • Mr. James Miller, NSC Coordinator for AUKUS

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

ON OUR DESKS

  • Advising on climate change policies and events
  • Advancing client priorities in the U.S.-Taiwan Initiative on 21st-Century Trade
  • Assessing negotiations on the Global Arrangement on Sustainable Steel and Aluminum

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:

  • March 7: Assistant USTR for Small Business, Market Access, and Industrial Competitiveness Sushan Demirjian, Global Arrangement on Steel and Aluminum, the Inflation Reduction Act, and supply chain issues

Upcoming WIBC events:

  • March 21: Special Representative for Subnational Diplomacy Ambassador Nina Hachigian, Subnational economic diplomacy and the upcoming Cities Summit of the Americas
  • March 28: Deputy Assistant Secretary of State for North America Rachel Poynter, North American political and economic cooperation

IMPORTANT:   Please see our new website at redflag.global/washington, where you can also access our client portal.  We have updated client portal access passcodes for the new website. Contact Alix Hess for access information.

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

YOU NEED TO KNOW


China

The opening sessions of the annual National People’s Congress and Chinese People’s Political Consultative Conference were held this week. These sessions officially set the state leadership roles following last fall’s CCP Congress and provide insight into the policy priorities and preferences of the CCP’s leadership. 

Rising tensions between China and the United States were prominent during the meetings. President Xi notably warned that the United States was seeking “all-round containment, encirclement and suppression against” China, while the new Foreign Minister Qin Gang remarked that “there will surely be conflict and confrontation… [and] catastrophic consequences” if the United States maintains its current Taiwan and China policies. However, outgoing Premier Li Keqiang softened his government’s rhetoric regarding Taiwan in his report, highlighting cultural and economic engagement rather than conflict in managing future relations with the ROC. 

Following several years of curtailing the autonomy of private industry, President Xi sought to strike a more welcoming tone towards private sector investment in his remarks. Xi stressed that China will continue to pursue advanced manufacturing, despite U.S. opposition, calling the sector “critical” and noting “we can’t rely on international markets to save us.” China additionally announced a 5% growth target for the coming year. This relatively modest figure may reflect an anticipation of potential economic headwinds, including high levels of municipal government debt limiting infrastructure spending. 

The State Council also announced major reorganizations of the science, technology, and finance regulators to improve the country’s science and technology competitiveness.

Contact: Ethan Knecht, Pat Sheehy

Europe

President Biden was scheduled to meet with European Commission President Ursula Von der Leyen at the White House on March 10.  The two are reportedly set to address European concerns over the Inflation Reduction Act’s (IRA) electric vehicle tax credits through an announcement on critical minerals supply chains.  The two leaders are also expected to confer over support for Ukraine and address challenges posed by the People’s Republic of China. Senate Finance Committee leaders sent a letter this week calling on President Biden to address EU digital trade policies. 

On March 9, the European Commission announced a relaxation of rules against state aid to promote the development of green technologies.  This decision allows EU Member States to further support measures needed for the transition towards a net-zero industry, such as schemes for accelerating the rollout of renewable energy and energy storage and for the decarbonisation of industrial production processes, which Member States may now set up until December 31, 2025.

Contact: Stephen Ziehm

Latin America

Both the United States and Canada requested formal USMCA technical consultations with Mexico on its agricultural biotechnology policies, specifically import restrictions on genetically modified corn. Agriculture Secretary Vilsack also issued a statement warning that the United States. would “pursue all necessary steps to enforce our rights under the USMCA to ensure that U.S. producers and exporters have full and fair access to the Mexican market.” In response, Mexico’s Economy Ministry defended its policy, arguing it aligned with USMCA’s requirements.

U.S. Trade Representative Tai announced that the United States and Brazil would revitalize their Agreement on Trade and Economic Partnership (ATEC) while traveling to Brazil on March 7-9. The two sides also announced they will likely hold an ATEC meeting later this year, discussed WTO reform, and stated that their technical teams would develop a work program on resilient supply chains, clean technology investment, labor, and “shared prosperity.”  Brazil is not a participant in the Americas Partnership for Economic Prosperity (APEP) negotiation the United States has launched with trading partners in Latin America.

Contact: Stephen Ziehm, Ethan Knecht

Quick takes

  • Saudi Arabia and Iran announced a restoration of diplomatic relations in an agreement brokered by the People’s Republic of China.
  • USAID released a new Acquisition and Assistance (A&A) Strategy which aims to streamline the application and review process for humanitarian assistance. 
  • President Biden released his 2023 Budget on March 8. The White House issued a fact sheet detailing the budget’s funding for strategic competition with China and Russia and another detailing energy and climate priorities. 
  • Twelve Senators introduced legislation that would allow the Department of Commerce to establish a ‘comprehensive process’ to ban TikTok and other Chinese ICT platforms and products. The White House issued a statement of support for the bill. 
  • During a visit to New Delhi, Secretary of Commerce Gina Raimondo launched a Strategic Trade Dialogue with India which “will address export controls, explore ways of enhancing high tech commerce, and facilitate technology transfer between the two countries.”
  • The Director of National Intelligence (DNI) released the U.S. Intelligence Community’s Annual Threat Assessment, highlighting risks related to China, Russia, and regional powers and the security implications of transnational challenges such as climate change and health.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.1519 (Smith, R-NJ) Provides support to victims of foreign state misrepresentation to the World Health Organization.
  • H.R.1481 (Arrington, R-TX) Would limit the President’s authority to restrict crude oil exports through licensing requirements 
  • H.R.1471 (Omar, D-MN) Would encourage sanctions against foreign countries who violate human rights laws. 
  • H.R.1448 (Feenstra, R-IA) Prohibits investments by foreign adversaries in U.S. real estate suitable for renewable energy or renewable fuels production.
  • H.R.1433 (Wild, D-PA) Would suspend security assistance to the Philippines until certain military and police force reforms are made. 
  • H.R.1377 (Walberg, R-MI) Would increase U.S. representation in communications standards-setting bodies.
  • H.R.1368 (Schiff, D-CA) Would impose sanctions against China if they sell arms to Russia.
  • H.R.1357 (Meuser, R-PA) Would increase congressional oversight of Russia related sanctions.

Senate

  • S.770 (Blackburn, R-TN) Would provide defense article loans and leases for Taiwan.
  • S.763 (Barrasso, R-WY) Would prohibit low-enriched uranium imports from Russia.
  • S.686 (Warner, D-VA) Would authorize the Department of Commerce to review and prohibit certain telecommunication transactions between U.S. and foreign adversaries.
  • S.684 (Hawley, R-MO) Would prohibit land purchase by foreign entities. 
  • S.682 (Menendez, D-NJ) Would give diplomatic status to the ASEAN Secretariat.

Upcoming Congressional Hearings

Senate

WHO’S WHO

Arrivals

  • Mr. Chris Slevin, Chief of Staff to the Secretary of Commerce
  • Ms. Jane Rhee, Chief of Staff to the DFC CEO and President
  • Ms. Jennifer McClellan, Member of the House of Representatives (D-VA)
  • Ms. Kendee Yamaguch, Deputy Assistant Secretary of Commerce for the U.S. Field
  • Mr. Salim Bhabhrawala, Department of Energy Director for Manufacturing and Energy Supply Chains

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

UPCOMING EVENTS

  • Eurogroup Ministers (Brussels), March 13
  • Senate is in session, House in recess, March 13-17
  • IPEF negotiations (Bali), March 13-19 
  • International Labor Organization Governing Body, March 13-23
  • EU Economic and Financial Affairs Council (Brussels), March 14
  • EU Environment Council (Brussels), March 16
  • Annual Meeting of the Inter-American Development Bank Governors (Panama), March 16-19

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

Alix Hess
In

International Issues Update

ON OUR DESKS

  • Advising clients on engagement opportunities during the U.S. APEC host year
  • Assessing Congressional trade priorities and pending trade program renewals
  • Reporting on dumping and countervailing duties determinations
  • Developing client positions on international food safety standards

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-test:

  • March 1: Deputy Assistant USTR for China Affairs Timothy Wineland, U.S.-Taiwan Initiative on 21st-Century Trade Priorities

Upcoming WIBC events:

  • March 7: Assistant USTR for Small Business, Market Access, and Industrial Competitiveness Sushan Demirjian, Global Arrangement on Steel and Aluminum, the Inflation Reduction Act, and supply chain issues
  • March 21: Special Representative for Subnational Diplomacy Ambassador Nina Hachigian, Subnational economic diplomacy and the upcoming Cities Summit of the Americas

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

YOU NEED TO KNOW

China 

During the February 28 first hearing convened by the House Select Committee on the Strategic Competition, topics covered included Taiwan, trade, human rights, and more. China’s Foreign Ministry criticized the Committee as displaying “ideological bias and zero-sum Cold War mentality.”  In Washington, the Committee was praised for exhibiting rare bipartisanship. 

Other Congressional action on China included a House Science Committee hearing on the need to increase research to out compete China. The House Foreign Affairs Committee held a February 28 hearing on China policy with administration witnesses and approved legislation to remove China’s developing country status and other bills focused on discouraging China’s malign behavior. The House Financial Services Committee approved legislation that would distance financial institutions from China and require China’s removal from the G20 and other global organizations if they threaten Taiwan. Some on the Committee, including ranking member Maxine Waters (D-CA) pushed for more modest measures while calling for Congress to make progress on issues that could overall weaken the U.S. economy like the debt ceiling.

Meanwhile, the Biden Administration’s assessment of China’s membership in the World Trade Organization concluded that China’s continuing state-led economic and trade approach “runs counter to the open, market-oriented principles endorsed by all members of the organization.”

Contact: Chris Benscher, Pat Sheehy

Russia and Eurasia

G20 foreign ministers – including U.S. Secretary of State Antony Blinken, Russia’s Sergei Lavrov, and China’s Qin Gang – convened March 2 in Delhi. The meeting marked Secretary Blinken and Minister Lavrov’s first in-person engagement since the start of the war. 

G20 President India had aimed to focus on issues affecting developing countries, but the agenda was overtaken by debate on the war in Ukraine and did not reach consensus on a ministers declaration. “The Quad” (India, Japan, Australia, and the United States) instead issued a joint statement affirming their commitment to a free and open Indo-Pacific. 

Prior to the G20 ministerial, Secretary Blinken traveled to Kazakhstan and Uzbekistan in an effort to offset Russia’s influence in Central Asia. He thanked Central Asian nations for their adherence to U.S. sanctions and export controls on Russia and emphasized the United States’ continued support for the sovereignty and development of post-Soviet states. 

In a March 3 White House meeting, President Biden and German Chancellor Olaf Sholz got “in the weeds” on Ukraine, with Sholz reaffirming Germany will support Ukraine for “as long as it takes.” 

Separately, Commerce, Treasury, and Justice released on March 1 a joint advisory on sanction compliance, detailing common diversion and sanctions evasion schemes.

Contact: Pat Sheehy

Trade

USTR released on March 1 its 2023 Trade Policy Agenda and 2022 Annual Report, citing the Indo-Pacific Economic Framework for Prosperity (IPEF) and the Americas Partnership for Economic Prosperity (APEP) as top priorities.  

The Trade Policy Agenda reiterates the Biden administration’s emphasis on a “worker-centered trade policy,” highlighting labor enforcement under the USMCA’s rapid response mechanism (RRM). In the context of re-aligning the U.S.-China trade relationship, the agenda indicates a continued focus on China’s forced labor and non-market economic policies, while noting that USTR will continue a targeted tariff exclusions process for Section 301 actions to ensure that U.S. economic interests are being served.

House Ways and Means Committee Chairman Jason Smith (R-MO) released the committee’s trade priorities, which include focus on trade negotiations, enforcement (USMCA in particular), China (intellectual property, trade remedies), implementation of all existing trade agreements, trade preferences (the Miscellaneous Tariff Bill, the Generalized System of Preferences, the African Growth and Opportunity Act, and duty-free treatment for Haiti), forced labor, and customs reauthorization. 

Contact: Steve Ziehm, Chris Benscher

 

Quick takes

  • The United Kingdom and the European Union reached agreement to resolve Brexit-related differences over the Northern Ireland Protocol.
  • The White House announced appointments to the President’s Export Council, which has been inactive since 2016.
  • President Biden suggested he may veto legislation passed by both chambers of Congress that would block implementation of a Labor Department rule allowing retirement plans to consider climate factors in their investment decisions. 
  • Mexican President Andres Manuel Lopez Obrador announced a virtual summit to be held April 5 with Argentina, Bolivia, Brazil, Colombia, Chile, Cuba, and Honduras to develop a regional plan to tackle inflation by eliminating tariffs on agriculture and other goods. Ecuador and Costa Rica also signed a Free Trade Agreement earlier this week.
  • The White House released on March 2 a new National Cybersecurity Strategy, seeking to shift  responsibility for cybersecurity from individual users and small organizations to large entities through new sectoral cybersecurity requirements and increased federal assistance.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.1330 (Steel, D-CA) Would provide defense article loans and leases to Taiwan.
  • H.R.1324 (Pfluger, R-TX) Would require the Administration to assess using existing sanctions criteria whether Chinese entities should be sanctioned. 
  • H.R.1254 (Morelle, D-NY) Would direct the President to build support among countries who have frozen Russian central bank assets to use them for the reconstruction of Ukraine.
  • H.R.1176 (Connolly, D-VA) Would require the United States to oppose China’s attempts to undermine Taiwan initiatives in international organizations. 
  • H.R.1171 (Banks, R-IN) Would impose sanctions on the government of China.
  • H.R.1161 (Waters, D-CA) Would align SEC regulations for the World Bank’s International Development Association Act.
  • H.R.1159 (Wagner, R-MO) Would require updated reports relating to the Department of State’s Taiwan Guidelines.
  • H.R.1157 (Barr, R-KY) Would create a fund to counter PRC’s malign influence.
  • H.R.1156 (Spanberger, D-VA) Would mitigate financial threats from China.
  • H.R.1151 (Meeks, D-NY) Would hold China accountable for violating U.S. airspace.

Senate

  • S.653 (Klobuchar, D-MN) Would lift the trade embargo on Cuba.
  • S.629 (Coons, D-DE) Would provide the President with authority to enter into a comprehensive trade agreement with the United Kingdom.
  • S.591/ S.588 (Rubio, R-FL) Would sanction China in response to certain activities in the South China Sea and East China Sea/ Would sanction China for the failure to allow an investigation into the origins of COVID-19. 
  • S.587/S.586 (Rubio, R-FL) Would sanction non-U.S. persons for negligent creation of space debris/Would limit U.S.-China military-to-military exchanges and remove the exception for search and rescue and humanitarian operations.
  • S.585 (Rubio, R-FL) Would require the Administration to assess using existing sanctions criteria whether Chinese entities should be sanctioned. 
  • S.584 (Rubio, R-FL) Would reauthorize the North Korea Human Rights Act of 2004.
  • S.580 (Rubio, R-FL) Would provide greater scrutiny of visas for Chinese Communist Party members. 
  • S.552 (Rubio, R-FL) Would extend duty-free treatment to imports from Haiti.
  • S.548 (Barrasso, R-WY) Would enhance U.S. security and its allies.
  • S.538 (Rubio, R-FL)  Would prohibit the removal of Cuba from the list of state sponsors of terrorism until Cuba satisfies certain conditions.
  • S.536 (Daines, R-MT) Would authorize the confiscation of Russian assets to offset the U.S. cost of assistance to Ukraine.

Upcoming Congressional Hearings

House

Senate

WHO’S WHO

Arrivals

  • Mr. James Schindler, Senate Commerce Committee Republican Counsel
  • Mr. Landon Heid, House Select Committee on China Technology Policy Professional Staff Member
  • Ms. Laura Rosenberger, American Institute in Taiwan Chair 
  • Mr. Laurent Billi, French Ambassador to the United States
  • Mr. Mark Ein, President’s Export Council Chair
  • Mr. Rodrigo Valdés, IMF Western Hemisphere Department Director
  • Ms. Zephranie Buetow, Assistant DHS Secretary for Legislative Affairs

Departures

  • Mr. Eric Green, NSC Senior Director for Russia and Central Asia

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

UPCOMING EVENTS

  • PRC National People’s Congress and Chinese People’s Political Consultative Conference opening sessions (Beijing), March 4-5
  • U.S. Congress in session, March 6-10
  • ASEAN Senior Officials’ Meeting (Jakarta), March 6-8
  • 35th ASEAN-U.S. Dialogue (Jakarta), March 7
  • WTO Trade Policy Review of Turkey, March 8 & 10

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

Alix Hess
In

International Issues Update

ON OUR DESKS

  • Advising clients on engagement opportunities during the U.S. APEC host year
  • Assessing Congressional trade priorities and pending trade program renewals
  • Reporting on dumping and countervailing duties determinations
  • Developing client positions on international food safety standards

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:

  • March 1: Deputy Assistant USTR for China Affairs Timothy Wineland, U.S.-Taiwan Initiative on 21st-Century Trade Priorities

Upcoming WIBC events:

  • March 7: Assistant USTR for Small Business, Market Access, and Industrial Competitiveness Sushan Demirjian, Global Arrangement on Steel and Aluminum, the Inflation Reduction Act, and supply chain issues
  • March 21: Special Representative for Subnational Diplomacy Ambassador Nina Hachigian, Subnational economic diplomacy and the upcoming Cities Summit of the Americas

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

YOU NEED TO KNOW

China 

During the February 28 first hearing convened by the House Select Committee on the Strategic Competition, topics covered included Taiwan, trade, human rights, and more. China’s Foreign Ministry criticized the Committee as displaying “ideological bias and zero-sum Cold War mentality.”  In Washington, the Committee was praised for exhibiting rare bipartisanship. 

Other Congressional action on China included a House Science Committee hearing on the need to increase research to out compete China. The House Foreign Affairs Committee held a February 28 hearing on China policy with administration witnesses and approved legislation to remove China’s developing country status and other bills focused on discouraging China’s malign behavior. The House Financial Services Committee approved legislation that would distance financial institutions from China and require China’s removal from the G20 and other global organizations if they threaten Taiwan. Some on the Committee, including ranking member Maxine Waters (D-CA) pushed for more modest measures while calling for Congress to make progress on issues that could overall weaken the U.S. economy like the debt ceiling.

Meanwhile, the Biden Administration’s assessment of China’s membership in the World Trade Organization concluded that China’s continuing state-led economic and trade approach “runs counter to the open, market-oriented principles endorsed by all members of the organization.”

Contact: Chris Benscher, Pat Sheehy

Russia and Eurasia

G20 foreign ministers – including U.S. Secretary of State Antony Blinken, Russia’s Sergei Lavrov, and China’s Qin Gang – convened March 2 in Delhi. The meeting marked Secretary Blinken and Minister Lavrov’s first in-person engagement since the start of the war. 

G20 President India had aimed to focus on issues affecting developing countries, but the agenda was overtaken by debate on the war in Ukraine and did not reach consensus on a ministers declaration. “The Quad” (India, Japan, Australia, and the United States) instead issued a joint statement affirming their commitment to a free and open Indo-Pacific. 

Prior to the G20 ministerial, Secretary Blinken traveled to Kazakhstan and Uzbekistan in an effort to offset Russia’s influence in Central Asia. He thanked Central Asian nations for their adherence to U.S. sanctions and export controls on Russia and emphasized the United States’ continued support for the sovereignty and development of post-Soviet states. 

In a March 3 White House meeting, President Biden and German Chancellor Olaf Sholz got “in the weeds” on Ukraine, with Sholz reaffirming Germany will support Ukraine for “as long as it takes.” 

Separately, Commerce, Treasury, and Justice released on March 1 a joint advisory on sanction compliance, detailing common diversion and sanctions evasion schemes.

Contact: Pat Sheehy

Trade

USTR released on March 1 its 2023 Trade Policy Agenda and 2022 Annual Report, citing the Indo-Pacific Economic Framework for Prosperity (IPEF) and the Americas Partnership for Economic Prosperity (APEP) as top priorities.  

The Trade Policy Agenda reiterates the Biden administration’s emphasis on a “worker-centered trade policy,” highlighting labor enforcement under the USMCA’s rapid response mechanism (RRM). In the context of re-aligning the U.S.-China trade relationship, the agenda indicates a continued focus on China’s forced labor and non-market economic policies, while noting that USTR will continue a targeted tariff exclusions process for Section 301 actions to ensure that U.S. economic interests are being served.

House Ways and Means Committee Chairman Jason Smith (R-MO) released the committee’s trade priorities, which include focus on trade negotiations, enforcement (USMCA in particular), China (intellectual property, trade remedies), implementation of all existing trade agreements, trade preferences (the Miscellaneous Tariff Bill, the Generalized System of Preferences, the African Growth and Opportunity Act, and duty-free treatment for Haiti), forced labor, and customs reauthorization. 

Contact: Steve Ziehm, Chris Benscher

Quick takes

  • The United Kingdom and the European Union reached agreement to resolve Brexit-related differences over the Northern Ireland Protocol.
  • The White House announced appointments to the President’s Export Council, which has been inactive since 2016.
  • President Biden suggested he may veto legislation passed by both chambers of Congress that would block implementation of a Labor Department rule allowing retirement plans to consider climate factors in their investment decisions. 
  • Mexican President Andres Manuel Lopez Obrador announced a virtual summit to be held April 5 with Argentina, Bolivia, Brazil, Colombia, Chile, Cuba, and Honduras to develop a regional plan to tackle inflation by eliminating tariffs on agriculture and other goods. Ecuador and Costa Rica also signed a Free Trade Agreement earlier this week.
  • The White House released on March 2 a new National Cybersecurity Strategy, seeking to shift  responsibility for cybersecurity from individual users and small organizations to large entities through new sectoral cybersecurity requirements and increased federal assistance.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.1330 (Steel, D-CA) Would provide defense article loans and leases to Taiwan.
  • H.R.1324 (Pfluger, R-TX) Would require the Administration to assess using existing sanctions criteria whether Chinese entities should be sanctioned. 
  • H.R.1254 (Morelle, D-NY) Would direct the President to build support among countries who have frozen Russian central bank assets to use them for the reconstruction of Ukraine.
  • H.R.1176 (Connolly, D-VA) Would require the United States to oppose China’s attempts to undermine Taiwan initiatives in international organizations. 
  • H.R.1171 (Banks, R-IN) Would impose sanctions on the government of China.
  • H.R.1161 (Waters, D-CA) Would align SEC regulations for the World Bank’s International Development Association Act.
  • H.R.1159 (Wagner, R-MO) Would require updated reports relating to the Department of State’s Taiwan Guidelines.
  • H.R.1157 (Barr, R-KY) Would create a fund to counter PRC’s malign influence.
  • H.R.1156 (Spanberger, D-VA) Would mitigate financial threats from China.
  • H.R.1151 (Meeks, D-NY) Would hold China accountable for violating U.S. airspace.

Senate

  • S.653 (Klobuchar, D-MN) Would lift the trade embargo on Cuba.
  • S.629 (Coons, D-DE) Would provide the President with authority to enter into a comprehensive trade agreement with the United Kingdom.
  • S.591/ S.588 (Rubio, R-FL) Would sanction China in response to certain activities in the South China Sea and East China Sea/ Would sanction China for the failure to allow an investigation into the origins of COVID-19. 
  • S.587/S.586 (Rubio, R-FL) Would sanction non-U.S. persons for negligent creation of space debris/Would limit U.S.-China military-to-military exchanges and remove the exception for search and rescue and humanitarian operations.
  • S.585 (Rubio, R-FL) Would require the Administration to assess using existing sanctions criteria whether Chinese entities should be sanctioned. 
  • S.584 (Rubio, R-FL) Would reauthorize the North Korea Human Rights Act of 2004.
  • S.580 (Rubio, R-FL) Would provide greater scrutiny of visas for Chinese Communist Party members. 
  • S.552 (Rubio, R-FL) Would extend duty-free treatment to imports from Haiti.
  • S.548 (Barrasso, R-WY) Would enhance U.S. security and its allies.
  • S.538 (Rubio, R-FL)  Would prohibit the removal of Cuba from the list of state sponsors of terrorism until Cuba satisfies certain conditions.
  • S.536 (Daines, R-MT) Would authorize the confiscation of Russian assets to offset the U.S. cost of assistance to Ukraine.

Upcoming Congressional Hearings

House

Senate

WHO’S WHO

Arrivals

  • Mr. James Schindler, Senate Commerce Committee Republican Counsel
  • Mr. Landon Heid, House Select Committee on China Technology Policy Professional Staff Member
  • Ms. Laura Rosenberger, American Institute in Taiwan Chair 
  • Mr. Laurent Billi, French Ambassador to the United States
  • Mr. Mark Ein, President’s Export Council Chair
  • Mr. Rodrigo Valdés, IMF Western Hemisphere Department Director
  • Ms. Zephranie Buetow, Assistant DHS Secretary for Legislative Affairs

Departures

  • Mr. Eric Green, NSC Senior Director for Russia and Central Asia

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

UPCOMING EVENTS

  • PRC National People’s Congress and Chinese People’s Political Consultative Conference opening sessions (Beijing), March 4-5
  • U.S. Congress in session, March 6-10
  • ASEAN Senior Officials’ Meeting (Jakarta), March 6-8
  • 35th ASEAN-U.S. Dialogue (Jakarta), March 7
  • WTO Trade Policy Review of Turkey, March 8 & 10

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

Catchatiger
In

International Issues Update

ON OUR DESKS

  • Advising on import barriers in Argentina
  • Preparing input on IPEF negotiations 
  • Advising on the outlook for China tech restrictions

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:

  • February 22: Deputy Assistant USTR for Latin America Courtney Smothers, Americas Partnership for Economic Prosperity and implementation of existing trade agreements in Latin America

Upcoming WIBC events:

  • March 1: Deputy Assistant USTR for China Affairs Timothy Wineland, U.S.-Taiwan Initiative on 21st-Century Trade priorities
  • March 7: Assistant USTR for Small Business, Market Access, and Industrial Competitiveness Sushan Demirjian, Global Arrangement on Steel and Aluminum, the Inflation Reduction Act, and supply chain issues

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

YOU NEED TO KNOW

China

During a reportedly tense meeting with Secretary of State Antony Blinken on the sidelines of the Munich Security Conference, China’s chief foreign affairs official Wang Yi refused to apologize for the recent balloon incident while also calling the U.S. response “near-hysterical.” The Chinese Foreign Ministry denounced “U.S. hegemony” in a February 20 report covering claimed political, military, economic, technological, and cultural abuses. 

China released on February 24 a new position paper calling for peace talks between Russia and Ukraine and an end to unilateral sanctions. China has avoided calling the war an “invasion” and has continued diplomatic and economic ties with Russia. Western officials have warned that China may be considering providing Russia with lethal military assistance, an accusation denied by Beijing. Wang Yi visited Moscow February 22 in a show of support, and Chinese President Xi Jinping is expected to visit Russia later this spring. 

Amid these continuing tensions, the State Department has provided no indication Blinken will reschedule his canceled Beijing trip anytime soon, but the March 1 G20 ministerial in New Delhi could provide another venue for the two sides to meet – Chinese Foreign Minister Qin Gang will also attend.

Contact: Ethan Knecht, Pat Sheehy

Plastics

The UN Environment Assembly has made public submissions from countries and stakeholders participating in negotiations to develop a global treaty on plastic pollution, in advance of the second round of negotiations scheduled for May 29 in Paris.  

The U.S. submission proposes a mix of legally binding obligations, commitments, and voluntary approaches that “promote the sustainable production and consumption of plastic, increase plastic circularity in a manner that is protective of human health and the environment, and strengthen the environmentally sound management of plastic waste.” 

 In contrast, the European Union and members of the High Ambition Coalition to End Plastic Pollution have proposed binding requirements to reduce the production of primary plastics (including through taxes, tariffs, fees, production permits and licenses, moratoriums, bans, regulations, and removal of subsidies), as well as to eliminate or restrict specific plastics that are “harmful to the environment and human health, are problematic because they impede

circularity or that have a high risk of release into the environment.”

The EU is accepting comments until April 18 on its proposed Packaging and Packaging Waste Regulation (PPWR), which aims to cut plastic waste by 40% bloc-wide. The draft regulation includes requirements for 100% recyclable packaging by 2030, mandatory recycled content requirements, and bans on “unnecessary packaging” (such as miniature hotel toiletries and plastic produce packaging) and “superfluous packaging” (such as double walls or false bottoms). 

The WTO Technical Barriers to Trade (TBT) Committee will host on March 7 a special thematic session on regulatory cooperation between members on plastic regulation.

Contact: Stephen Ziehm

Russia 

Following President Biden’s February 20 visit to Kyiv and marking one year since Russia’s invasion, the United States announced on February 24 $9.9 billion in funding for Ukraine’s government, alongside additional weapons and defense support and further sanctions on Russia. 

U.S. sanctions include: increased tariffs on Russian goods; blocking sanctions on hundreds of Russian persons, including previously unsanctioned banks, political figures, grain traders,  high technology firms, and subsidiaries of Russia’s Rosatom nuclear SOE; new restrictions on the Russian metals and mining sector; and export controls on basic goods. 

The European Union on February 23 proposed to renew Ukraine’s preferential trade access but failed to reach consensus on a 10th package of sanctions. Poland and the Baltic states are reportedly pushing for harsher measures than those proposed by the European Commission as Hungary seeks to soften and remove sanctions. Meanwhile, G7 leaders reaffirmed “unwavering support” for Ukraine, and the United Kingdom barred the export of “every item Russia is using on the battlefield.” Ukraine itself imposed sanctions barring all Russian financial firms from its market for 50 years.

Russian leader Vladimir Putin recommitted to the war in his February 21 State of the Nation address, during which he also announced that Russia would exit the “New START” nuclear arms control treaty.  

Contact: Pat Sheehy, Ethan Knecht

Quick takes

  • The United States on February 23 nominated former Mastercard President and CEO Ajay Banga to lead the World Bank, highlighting Banga’s “experience mobilizing public-private resources” and addressing climate change.
  • The United States, Mexico and Canada agreed to establish a trilateral Sub-Committee on Emergency Response under the USMCA North American Competitiveness Committee, which will seek to coordinate on critical infrastructure priorities and support North American supply chains during emergencies.
  • In February 23 remarks outlining a “long-term vision for technological leadership, Secretary of Commerce Gina Raimondo said the United States aims to establish two new large-scale clusters for semiconductor manufacturing by 2030 and to create a new public-private National Semiconductor Technology Center. 
  • Ambassadors from 27 developing countries urged House and Senate trade leadership to urgently reauthorize the Generalized System of Preferences (GSP) program, calling it “a central piece on the trade agenda of our countries.”
  • The State Department issued on February 23 its revised conventional arms transfer policy, outlining how the administration will evaluate arms transfers’ risks while promoting U.S. defense exports. 
  • Politico reports that French Finance Minister Bruno Le Maire has said global tax reform is “blocked, notably by the United States, Saudi Arabia and India” and that “chances of success are slim.” 

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.1149 (Wild, D-PA) Requires reporting of certain entity involvement in the provision of telecommunication equipment and services. 
  • H.R.1146 (Steel, R-CA) Would limit foreign threats to U.S. higher education.
  • H.R.1137 (Nunn, R-IA) Would enable work with allies to seek China’s compliance with OECD export credit standards. 
  • H.R.1135 (Meeks, D-NY) Would grant authorities to the President to combat economic coercion by foreign adversaries. 
  • H.R.1130 (Johnson, R-OH) Would repeal natural gas export and import limitations. 
  • H.R.1127 (Gonzales, R-TX) Would initiate U.S.-Taiwan cooperative research activities to prepare against cyber threats.
  • H.R.1120 (Donalds, R-FL) Would impose sanctions on certain Cubans who engage in human rights abuses, corruption, and certain transactions. 
  • H.R.1107 (Kim, R-CA) Would direct the Secretary of State to promote the end to labeling China as a developing country. 
  • H.Res.145 (James, R-MI) Expresses opposition to South African joint military exercises with China and requires a review of the U.S.-South African relationship. 
  • H.R.1103 (Smith, R-HJ) Requires the President to remove privileges from the Hong Kong Economic and Trade Office if it is determined that Hong Kong no longer enjoys autonomy. 
  • H.R.1093 (McCaul, R-TX) Directs the Secretary of State to submit a report on the implementation of the advanced capabilities pillar of the trilateral security partnership between the United States, Australia, and the United Kingdom. 
  • H.R.1081 (Gallagher, R-WI) Would protect Americans from foreign adversary social media threats.

Upcoming Congressional Hearings

House

Senate

WHO’S WHO

Arrivals

  • Mr. Christopher Wilson, Assistant USTR for Japan, Korea, and APEC Affairs
  • Mr. Evan Schatz, Senate Appropriations Committee Democratic Staff Director
  • Ms. Eyang Garrison, Senate Agriculture Committee Democratic Deputy Staff Director
  • Mr. Kevin Shea, Acting Deputy Secretary of Agriculture
  • Mr. Matthew Pearl, NSC Director for Emerging Technology

Departures

  • Dr. Ben Harris, Assistant Secretary of the Treasury for Economic Policy
  • Ms. Jen Harris, NEC/NSC Senior Director for International Economics

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.

Catchatiger
In

International Issues Update

ON OUR DESKS

  • Reporting on Brazilian President Lula’s visit to Washington
  • Analyzing impact of APEP, IRA, and the CHIPS Act on investment in Latin America
  • Monitoring progress of UN plastic treaty negotiations and reporting on global plastic outlook

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:

  • February 15: Assistant USTR for Labor Josh Kagan, Combatting forced labor and labor priorities in trade negotiations
  • February 16: Deputy Assistant Secretary of State for China, Taiwan, and Mongolia Rick Waters, U.S.-China relations and China House’s relationship with the business community

Upcoming WIBC events:

  • February 22: Deputy Assistant USTR for Latin America Courtney Smothers, Americas Partnership for Economic Prosperity and implementation of existing trade agreements in Latin America
  • March 1: Deputy Assistant USTR for China Affairs Timothy Wineland, U.S.-Taiwan Initiative on 21st-Century Trade priorities

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

YOU NEED TO KNOW

China

In February 15 remarks at the Brookings Institute, Deputy Secretary of State Wendy Sherman addressed U.S.-China relations, outlining the administration’s strategy as “Invest, align, compete.” She emphasized that the United States will push back against Chinese efforts “that seek to coerce other countries, distort markets, and undermine American workers and businesses” but is open to collaboration on key areas such as “climate, food security, counter-narcotics, [and] global health.” 

Following the February 4 U.S. shootdown of a Chinese spy balloon, the administration on February 16 said that other objects shutdown in U.S. airspace over the weekend were not linked to China. President Biden addressed the ongoing situation in a February 16 press conference. 

In a February 15 Foreign Ministry briefing, China said it will take measures against U.S. entities related to the downing of the spy balloon but did not specify any details of such measures. Secretary of State Antony Blinken reportedly may meet with his Chinese counterpart on the margins of the Munich Security Conference, in an attempt to deescalate tensions.

Meanwhile, Chinese President Xi Jinping delivered on February 17 a major speech on progress combatting COVID, noting that the government believes it has now “effectively balanced pandemic containment with economic and social development.” Beijing also released the text of Xi’s December 2022 speech to the Central Economic Work Conference, which notably welcomed new foreign direct investment and called for “liberalizing market access for private investment.” 

Contact: Ethan Knecht, Pat Sheehy

Latin America

During his first visit to Washington since his return to the presidency, Brazilian President Lula da Silva traveled met with, among others, President Biden, Senator Bernie Sanders (I-VT) and other progressive members of Congress, and the AFL-CIO. In a joint statement, President Biden agreed to visit Brazil sometime in the future and committed to “work with Congress” to provide unspecified funds for Brazil’s Amazon fund. 

While the joint statement noted discussions on trade, investment, and supply chains, there was no further announcement of substantive progress on economic cooperation or agreements. The countries agreed to restart the high-level U.S.-Brazil Climate Change Working Group, and U.S. Climate Special Envoy John Kerry will reportedly visit Brazil in the near future.

The Mexican government scrapped its deadline to ban genetically modified corn for animal feed and industrial use, but announced it would still prohibit the herbicide glyphosate and the use of GM corn for human consumption. U.S. Agriculture Secretary Tom Vilsack expressed “disappointment” at the move, and House Ways and Means Committee Chairman Jason Smith (R-MO) and Trade Subcommittee Chairman Adrian Smith (R-NE) sent a letter to Secretary Vilsack and USTR Tai calling for the administration to initiate a formal USMCA dispute.  

On February 14, Senator Tom Cotton (R-AR) led a bipartisan letter to Secretary of Commerce Gina Raimondo and U.S. Trade Representative Katherine Tai urging them to take action against an “unsustainable surge of Mexican steel imports.” 

Contact: Ethan Knecht, Steve Ziehm

Quick takes

  • The Departments of Commerce and Justice announced on February 16 a joint task force to disrupt adversaries like China from acquiring technology critical to U.S. national security.
  • World Bank President David Malpass has announced he will step down by June 30.  Treasury Secretary Janet Yellen said the United States would put forward a successor candidate to continue work on multilateral development bank reform with climate change and public health as priorities. 
  • The United States issued on February 16 a “Political Declaration on the Responsible Military Use of Artificial Intelligence (AI) and Autonomy,” laying out a series of non-binding guidelines describing best practices for responsible use of AI in a defense context.
  • In its first meeting of 2023, the WTO Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade discussed a wide range of plastic production, trade, and waste issues and aimed to advance outcomes for the February 2024 13th Ministerial Conference (MC13) in Abu Dhabi, in alignment with the ongoing negotiation of a global plastic treaty. The Dialogue will next meet on March 13. 
  • The Committee on Foreign Investment in the United States (CFIUS) determined on February 13 that the United Kingdom and New Zealand qualify for exemption from certain reviews by the body. 

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.1042 (McMorris Rodgers, R-WA) Prohibits the import of low enriched uranium from Russia.
  • H.R.1016 (Lesko, R-AZ) Prohibit U.S. entry of certain members of the Chinese Communist Party until China ceases theft of U.S. intellectual property.
  • H.R.988 (Allred, D-TX) Prohibits the establishment of a corporation used to conceal election contributions by foreign nationals. 
  • H.R.944 (Pfluger, R-TX) Requires U.S. higher education institutions to disclose ties to the Chinese government. 
  • H.R.942 (Obernolte, R-CA) Would add to the entity list foreigners that pose a threat to the security of supply chains of Internet of Things devices. 

Senate

  • S.520 (Scott, R-FL) Provides reports to Congress on China’s bilateral security agreements and joint police initiatives. 
  • S.504 (Scott, R-FL) Imposes sanctions against foreigners who conduct transactions relating to Cuban human rights violations.  
  • S.484 (Peters, D-MI) Would provide training and guidance relating to Uyghur human rights abuses.
  • S.481 (Scott, R-FL) Would impose sanctions to deter Chinese aggression against Taiwan.
  • S.480 (Tester, D-MT) Would establish a working group to evaluate threats to food security and animal health posed by beef imported from Brazil. 
  • S.477 (Scott, R-FL) Would give the President authority to use military force for the purpose of securing and defending Taiwan against armed attack. 
  • S.458 (Manchin, D-WV) Would establish a program to reduce the reliance of partnered  nations on Russian energy. 
  • S.451/S.450 (Lankford, R-OK) Would impose sanctions in response to Iranian and Russian aggression/Would strengthen export controls that destabilize Iranian activities. 
  • S.446 (Coons, D-DE) Would provide the President with authority to enter into plurilateral trade agreements with benefits. 
  • S.444 (Johnson, R-WI) Would require that any World Health Assembly agreement be subject to Senate ratification. 
  • S.442 (Barrasso, R-WY) Would prevent former Presidential appointees from representing the Chinese government. 
  • S.436 (Risch, R-ID) Would respond to the looming global food crisis precipitated by Russia’s invasion of Ukraine (reintroduces Securing Allies Food in Emergencies Act (SAFE Act)).
  • S.430 (Risch, R-ID) Would provide authority to enter into a cooperative agreement to protect civilians in Iraq and the Arabian Peninsula from weaponized unmanned aerial systems. 
  • S.416 (Wicker, R-MS) Would designate the Russian-based mercenary Wagner Group as a foreign terrorist organization.
  • S.415 (Thune, R-SD) Would provide reliable and evidence-based food and energy security. 
  • S.396 (Menendez, D-NJ) Would require the Secretary of State to impose sanctions on Haitian elites involved in criminal activities.

WHO’S WHO

Arrivals

  • Dr. Lael Brainard, National Economic Council (NEC) Director
  • Dr. Joelle Gamble, NEC Deputy Director
  • Ms. Natalie Quillian, Deputy Chief of Staff to the President
  • Ms. Sarah Beran, National Security Council (NSC) Senior Director for China and Taiwan
  • Mr. William Russo, Assistant Secretary of State for Global Public Affairs
  • Mr. Chris Bigelow, House Appropriations Committee Democratic Staff Director

Departures

  • Ms. Gina Ortiz Jones, Under Secretary of the Air Force
  • Ms. Laura Rosenberger, NSC Senior Director for China and Taiwan
  • Ambassador Philippe Etienne, French Ambassador to the United States

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

UPCOMING EVENTS

  • APEC First Senior Officials Meeting (Palm Springs), February 14-28
  • Munich Security Conference (Munich), February 17-19
  • African Union Assembly of Heads of State and Government (Addis Ababa), February 18-19
  • EU Foreign Affairs Council (Brussels), February 20
  • U.S. Congress is in recess, February 20-24
  • ASEAN Defense Ministers Meeting (Bangkok), February 20-24
  • EU General Affairs Council (Brussels), February 21
  • USDA Annual Agricultural Outlook Forum, February 23-24
  • G20 Finance Ministers and Central Bank Governors Meeting (Bengaluru), February 23-25
  • Nigerian General Elections, February 25

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

Catchatiger
In

International Issues Update

ON OUR DESKS

  • Reporting on anti-dumping proceedings related to tinplate steel
  • Organized and executed client congressional outreach 
  • Advised on the outlook for sanctions designations targeting select Russian firms

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:

  • February 15: Assistant U.S. Trade Representative for Labor Josh Kagan, Combatting forced labor and labor priorities in trade negotiations
  • February 16: Deputy Assistant Secretary of State for China, Taiwan, and Mongolia Rick Waters, U.S.-China relations and China House’s relationship with the business community

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

YOU NEED TO KNOW

China

After shooting down a Chinese spy balloon last week, the United States revealed on February 9 that the balloon “was capable of conducting signals intelligence collection operations” and was part of a fleet that had flown over “more than 40 countries across five continents.” Media reports indicate a second object (as yet unidentified) was shot down over Alaska on February 10.

President Biden’s February 7 State of the Union address reiterated that the United States seeks competition, not conflict, with China and emphasized working with China where possible to “advance American interests and benefit the world.” President Biden did refer to Chinese President Xi Jinping by name and defended his actions on the balloon, saying the United States would protect itself if “China threatens our sovereignty” and had done so in this case. 

In a rare display of bipartisanship, the House on February 9 voted 419-0 to censure Beijing for its violation of U.S. airspace, but the parties split over assessing the Biden administration’s response. During a February 9 Senate Foreign Relations Committee hearing, Chairman Menendez (D-NJ) called for increased funding to expand U.S. diplomacy and development efforts to counter China in the Indo-Pacific region. 

The House Financial Services Committee February 7 hearing on economic threats from China served as a platform to introduce 14 bills, primarily focused on Taiwan and financial threats. The House Armed Services Committee held on February 7 a hearing focused on China’s threat to U.S. national defense. 

Contact: Chris Benscher

Buy American

During the State of the Union, President Biden announced he will release “new standards to require all construction materials used in federal infrastructure projects to be made in America.”  The administration is expected to release the new proposed rule in the coming weeks. President Biden insisted that new procurement plans guided by a “Buy American” principle would not violate U.S. trade commitments, including the WTO’s Government Procurement Agreement.

The 2021 Build America Buy America Act, enacted as part of the infrastructure bill, already requires that “all iron, steel, manufactured products, and construction materials used in covered infrastructure projects” are made in the U.S., as described by the Commerce Department. There is still significant confusion among industry, federal, state, and local agencies regarding the difference between a construction material and a manufactured product and what manufacturing processes must occur domestically for construction materials.

Contact: Chris Benscher

Central America

Vice President Harris announced a new Central America Forward framework under the Partnership for Central America (PCA), prioritizing goals in key areas like agriculture, digital access, education and training, and infrastructure. 

The framework also identifies several new steps the administration is taking to support private sector investments in the region, including: the creation of a U.S. Government Northern Central America Investment Facilitation Team; increased access to DFC’s financing for private sector-led projects; the establishment of USAID workforce development programs; and the publication of a Business-Enabling Environment Action Plan. The U.S. Export-Import Bank also announced that it is looking to use its tools to support the Central America Forward initiative.

In Nicaragua, the Ortega regime unilaterally released more than 200 political prisoners, who were stripped of their citizenship and then deported to the United States. The State Department called the move a “constructive step” and said it “opens the door to further dialogue.”

Contact: Ethan Knecht

Quick takes

  • Pro-western Moldovan Prime Minister Natalia Gavrilița resigned, under Russian economic and political pressure and facing rising inflation. Earlier in the week, Moldova objected to Russian missiles transiting the country’s airspace.
  • EU leaders convened February 9-10 for a special summit in Brussels, discussing the war in Ukraine as it approaches the one-year mark, as well as the European response to the U.S. Inflation Reduction Act. Joining the summit after visits to London and Paris, Ukrainian President Volodymyr Zelenskyy urged the EU to provide additional military support and advance Ukraine’s EU accession process.
  • Treasury Secretary Janet Yellen outlined on February 9 four priorities for World Bank reform: expanding the bank’s mandate beyond poverty reduction and shared prosperity; creating new incentives to tackle global challenges like climate change; expanding operations to subnational entities; and better stretching financial resources, such as by mobilizing private capital. Secretary Yellen also criticized China’s slow pace of debt restructurings in developing countries like Zambia.  
  • The United States hosted the first round of “conceptual discussions” under the U.S.-Kenya Strategic Trade and Investment Partnership (STIP). Launched in July 2022, the STIP aims to achieve “high standard commitments” in areas such as agriculture, anti-corruption, digital trade, and the environment

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.958 (Steel, R-CA) Would renew required reports on North Korea arms trafficking and cybersecurity and North Korea’s relations with Iran. 
  • H.R.956 (Smith, R-NJ) Would prohibit oil and gas exploration, development, and production in the North Atlantic Planning Area of the Outer Continental Shelf
  • H.R.944 (Pfluger, R-TX) Would require institutions of higher education to disclose certain ties to organizations affiliated with the Chinese government.
  • H.R.932 (Lee, D-CA) Would repeal the military force authorization against Iraq.
  • H.R.931 (Kustoff, R-TN) Would report on oligarchs and representative entities of Iran.
  • H.R.917 (Gonzales, R-TX) Requires CFIUS to review real estate purchases or leases near military installations by any foreign person connected or subsidized by Russia, China, Iran, or North Korea.
  • H.R.892 (Bice, R-OK) Would convert the value of seized Russian assets to contribute to humanitarian assistance in Ukraine.
  • H.R.869 (Wilson, R-SC) Would require the Secretary of State to review whether certain Iranian officials are eligible for entry into the United States. 
  • H.R.844 (Obernolte, R-CA) Would allow an owner of a trade secret redress of the theft of trade secrets extraterritorially.

Senate

  • S.377 (Graham, R-SC) Would prevent the Homeland Security Department from requiring repayment, recoupment, or offset of certain antidumping duties and countervailing duties already paid.
  • S.369 (Cruz, R-TX) Requires CFIUS to review real estate purchases or leases near military installations by any foreign person connected or subsidized by Russia, China, Iran, or North Korea.
  • S.360 (Cruz, R-TX) Would address the foreign threats to U.S. higher education.
  • S.347 (Rubio, R-FL) Would protect Americans from foreign threats through social media.
  • S.316 (Kaine, D-VA) Would repeal the military force authorization against Iraq.
  • S.308 (Romney, R-UT) Would end China’s treatment as a developing nation. 
  • S.295 (Young, R-IN) Would grant authorities to combat economic coercion by foreign adversaries.

Upcoming Congressional hearings 

Senate

WHO’S WHO

Arrivals

  • Chas Morrison, House Select Committee on China Policy Director 
  • David Hanke, House Select Committee on China Staff Director 
  • Eric Morrissette, Chief of Staff to the Deputy Secretary of Commerce 
  • Jeannette Chu, NFTC Vice President for National Security Policy
  • Mary Frances Repko, White House Deputy National Climate Advisor

Departures

  • Alondra Nelson, OSTP Principal Deputy Director for Science and Society
  • Brian Deese, National Economic Council Director
  • Varun Sivaram, Senior Advisor for Clean Energy and Innovation to the Special Envoy for Climate Change

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

UPCOMING EVENTS

  • Senate in session/House in recess, February 13-17
  • EU Eurogroup Ministerial (Brussels), February 13
  • U.S.-Vietnam bilaterals to discuss IPEF (Hanoi), February 13-15 
  • EU Economic and Financial Affairs Council (Brussels), February 14-15
  • OECD Ministerial Meeting on Responsible Business Conduct (Paris), February 14-15
  • ASEAN Defense Senior Officials’ Meeting (Indonesia), February 14-16
  • APEC First Senior Officials’ Meeting (Palm Springs), February 14-28
  • U.S.-Malaysia bilaterals to discuss IPEF (Kuala Lumpur), February 16
  • Munich Security Conference (Munich), February 17-19
  • USTR Tai visits Munich, February 17

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

Catchatiger
In

International Issues Update

ON OUR DESKS

  • Developing client priorities for Congressional engagement, including on the Farm Bill
  • Analyzing U.S. mining reform proposals 
  • Investigating U.S. government sectoral interests in key markets
  • Facilitating client connections with USAID 

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:

  • February 9: Principal Deputy Assistant Secretary of State for Near Eastern Affairs Yael Lempert, Economic and political priorities in the Middle East

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

YOU NEED TO KNOW

Ukraine

Ukrainian President Volodymyr Zelenskyy is hosting on February 3 in Kyiv the EU-Ukraine Summit with EU Commission President Ursula Von der Leyen, Council President Charles Michel, and other senior bloc leadership in attendance. Zelenskyy announced a reform action plan aiming to align Ukraine with EU economic approaches (including in industry, agricultural, energy, digital services, transport, financial, [and] customs issues) and said Ukraine’s goal is to begin EU accession negotiations before the end of 2023. EU leaders, while generally supportive of Ukraine’s EU aspirations, have cautioned that the process cannot be rushed.  

The EU announced a seventh defense assistance package worth €500 million and a new €45 million training assistance measure for Ukrainian personnel. The United States announced new security assistance, including air defense and counter-drone capabilities,  armored infantry vehicles, and ammunition for previously transferred systems. The U.S. actions are collectively valued at $2.175 billion.

Contact: Pat Sheehy

China

Secretary of State Antony Blinken postponed his planned visit to Beijing following reports of a Chinese blimp U.S. officials described as an “espionage platform,” seen flying over U.S. nuclear facilities in Montana. Chinese authorities claimed the aircraft is a wayward “civilian airship used for research, mainly meteorological, purposes.” While the Defense Department said the blimp posed little current risk, State Department officials characterized the overflight as a “clear violation of our sovereignty, as well as international law…” 

Blinken’s visit had been intended to lay groundwork for a meeting between Presidents Joe Biden and Xi Jinping, which may now also be delayed. The episode may inflame sentiments in both countries and could advance the timetable for a variety of U.S. measures aimed at countering China. 

Contact: Pat Sheehy, Ethan Knecht

Forced Labor

The United States on February 3 took the significant step of removing a ban on imports of palm oil from the largest Indonesian producer, Sime Darby. The ban was put in place in 2020 due to indicators of forced labor at the firm’s plantations. U.S. Customs and Border Protection (CBP) lifted restrictions after Sime Darby provided information about reform of its labor practices and evidence it no longer produces palm oil using forced labor. Of particular note, Sime Darby reimbursed workers $20 million in “recruitment fees,” paid to secure employment with the firm. The fees contributed to a scenario that CBP Executive Assistant Commissioner AnnMarie Highsmith described as “debt bondage.” 

The Department of Homeland Security also released its annual report on human trafficking. The report details, among other issues, broader DHS efforts on forced labor in FY2022. 

Contact: Pat Sheehy

South America

In a wide-ranging interview preceding his February 9-10 visit to Washington, Brazilian President Lula da Silva said priorities for conversation with President Biden include the U.S.-Brazil bilateral trade relationship, U.S.-Mercosur relations, climate and the environment, and the war in Ukraine. In contrast to his predecessor’s relatively isolationist stance, Lula outlined a more aggressive and active Brazilian foreign policy, including his desire to form a group of neutral countries to seek a peaceful conclusion to the war in Ukraine. Lula also hopes Brazil can act as a mediator with Cuba and Venezuela. 

German Chancellor Scholz traveled to Brazil, Argentina, and Chile as the EU and Mercosur look to ratify their long-stalled free trade agreement and ahead of an EU-Latin America summit this July. Scholz signed agreements on mining and climate change cooperation with Chile and on economic cooperation with Argentina. Rebuffing Scholz’s attempts to use the trip to rally support for Ukraine, Brazil and Argentina declined to send arms, and Chile pledged only to support Ukraine’s reconstruction after the war’s conclusion.

Contact: Ethan Knecht

Quick takes

  • The World Health Organization (WHO) formally released the zero draft of a “convention, treaty or other international instrument” on pandemic prevention, preparedness, and response. Negotiations will resume February 27-March 3 in Geneva. The draft includes provisions on waiving intellectual property rights during pandemics; requiring companies to disclose details of public contracts for vaccines and treatments; and enabling WHO to reserve for use in poorer countries 20% of global supply of tests, vaccines or treatments.
  • USTR’s annual report on notorious markets for counterfeiting and piracy found that China continues to be the top source of counterfeit products in the world.  Goods from China, together with transshipped goods from China to Hong Kong, accounted for 75% of the value of counterfeit and pirated goods seized by CBP in 2021.
  • USTR is seeking comments on possible extension of Section 301 tariff exclusions on COVID-related imports from China, currently in place until May 15. USTR is asking whether these exclusions should be extended for an additional six months.
  • The Senate Agriculture Committee’s first hearing on the 2023 Farm Bill focused on trade, with Senators particularly emphasizing trade agreement enforcement (primarily, related to Mexico), foreign market access, and support for underserved producers.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.825 (Waltz, R-FL) Prohibits contracting with Maduro regime connected businesses.
  • H.R.809 (Newhouse, R-WA) Prohibits certain foreign persons from U.S. agriculture real estate purchases.
  • H.R.804 (Newhouse, R-MO) Prohibits certain transactions involving China’s central bank digital currency.
  • H.R.803 (Lucas, R-OK) Requires financial regulators to exclude Chinese government representatives from certain banking organizations.
  • H.R.801 (Lesko, R-AZ) Would suspend imports from designated countries to prevent the spread of diseases.
  • H.R.797 (Khanna, D-CA) Would place a moratorium on large concentrated animal feeding operations to require country of origin labeling on beef, pork, and dairy products.
  • H.R.796 (Kelly, D-IL) Would establish an office of supply chain resiliency in the Department of Commerce. 
  • H.R.784 (Fulcher, R-ID) Would require web based sales companies to disclose ownership by entities located in China.
  • H.R.760 (Barr, R-KY) Would impose sanctions on Chinese military surveillance companies.
  • H.R.759 (Barr, R-KY) Would limit U.S. financial institutional engagement in Russian energy transactions.
  • H.R.752 (Eshoo, D-CA) Would require SelectUSA to coordinate with State-level economic development organizations to increase foreign direct investment in semiconductors.
  • H.R.748/H.R.747 (Tenney, R-NY) Would prohibit the distribution of federal funds to Chinese entities for certain public works projects/ Would require the SEC to require disclosures of issuers that have connections to China.
  • H.R.722 (Green, R-TN) Would decrease dependency on Chinese manufacturing and decrease migration due to lost regional opportunities. 
  • H.R.690/H.R.686/H.R.683 (Steube, R-FL) Would impose sanctions on persons engaging in Afghanistan rare earth minerals/Requires continuation of export controls on Huawei/Prevents certain agricultural transactions. 
  • H.R.647 (Johnson, R-OH) Would repeal restrictions on natural gas exports and imports.
  • H.R.638 (Smith, R-NJ) Would withdraw China from normal trade relations treatment.
  • H.R.589 (Banks, R-IN) Would impose sanctions on the Supreme Leader and President of Iran.

Senate

  • S.257 (Scott, R-FL) Prohibits contracting with Maduro regime connected businesses.
  • S.256 (Cruz, R-TX) Would terminate sanction waivers for Iran under the JCPOA.
  • S.229 (Peters, D-MI) Would require SelectUSA to coordinate with State-level economic development organizations to increase foreign direct investment in semiconductors.
  • S.190 (Rubio, R-FL) Would prohibit oil exports to China. 
  • S.168 (Rounds, R-SD) Would require a CFIUS review of certain agricultural transactions.
  • S.158 (Durbin, D-IL) Would establish goals and marshall private investment to expand exports to Latin America and Africa.
  • S.153 (Rubio, R-FL) Would safeguard certain U.S. technology and IP from Chinese influence.
  • S.150 (Cornyn, R-TX) Would amend the FTC to prohibit product hopping.

Upcoming Congressional hearings 

House

Senate

WHO’S WHO

Arrivals

  • Kenneth Schragin, Assistant USTR for Services and Investment
  • Louis Bono, State Department Senior Advisor for Caucus Negotiations 
  • Sarah Ladislaw, NSC Senior Director for Climate and Energy
  • Sean Bartlett, U.S. Ex-Im Bank SVP for Communications & External Engagement

Departures

  • Allison Varricchio, NSC Director for Afghanistan
  • Brian Deese, Director of the National Economic Council 
  • Dr. Jewel Bronaugh, Deputy Secretary of Agriculture

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

UPCOMING EVENTS

  • ASEAN Foreign Ministers’ Retreat (Indonesia), February 3-4
  • Ecuador constitutional reforms referendum, February 5 
  • President Biden delivers the State of the Union Address, February 7
  • State of the Union, February 7
  • Brazilian President Lula da Silva travels to Washington, February 9-10

    EU Council Meeting (Brussels), February 9-10

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

Patrick Sheehy
In

International Issues Update

ON OUR DESKS

  • Updating advice on Russia-related business risks 
  • Drafting comments on FDA draft rule on “healthy”
  • Counseling on antidumping and countervailing duty petitions

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

February 2023 schedule of events:

  • February 9: Principal Deputy Assistant Secretary of State for Near Eastern Affairs Yael Lempert, Economic and political priorities in the Middle East
  • February 15: Assistant U.S. Trade Representative for Labor Josh Kagan, Labor priorities in trade negotiations and forced labor
  • February 16: Deputy Assistant Secretary of State for East Asian and Pacific Affairs Rick Waters, U.S.-China relations and State’s “China House”

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

YOU NEED TO KNOW

Americas

Secretary of State Blinken and U.S. Trade Representative Tai joined 11 newly-announced partners for a virtual ministerial of the Americas Partnership for Economic Prosperity (APEP), first announced by President Biden at the Summit of the Americas in June 2022. The United States already has free trade agreements with nine of the 11 APEP partners, who are Barbados, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Panama, Peru, and Uruguay. No dates have been announced for any formal negotiations.

During a January 26 USMCA deputy trade ministers meeting in San Diego, the United States raised concerns over Mexico’s policies impacting energy, medical device supply chains, and agricultural biotechnology, as well as over Canada’s proposed digital service tax. Following the meeting, Senators Wyden (D-OR) and Crapo (R-ID) called on USTR to step up USMCA enforcement on Mexico.

Against the backdrop of the January 24 Community of Latin American and Caribbean States (CELAC) summit in Argentina, several regional players made news on trade. Brazil and Argentina raised eyebrows with an announcement of common currency cooperation, later clarifying they are considering a “common means of payment” that would not replace their own domestic currencies. Brazilian President Lula pledged cooperation on modernizing Mercosur, finalizing the Mercosur-EU FTA, and potential China-Mercosur FTA negotiations.

Neither the United States nor China is a member of CELAC, but Special Presidential Advisor Chris Dodd attended the CELAC summit and met on the margins with Argentina’s president and economic minister to discuss lithium, electric vehicles, agribusiness, and renewable energy. Chinese President Xi praised CELAC as the premier institution for Chinese engagement in the region. St. Vincent and the Grenadines will host the next CELAC summit in 2024.

Contact: Ethan Knecht, Steve Ziehm

Inflation Reduction Act

With intense scrutiny continuing over electric vehicle (EV) tax credits contained in the Inflation Reduction Act (IRA), Senator Joe Manchin (D-WV) introduced a bill (the American Vehicle Security Act) seeking to delay implementation of the tax credits and remove authority provided to Treasury to interpret and implement the IRA’s requirement for origin of qualifying critical minerals and battery components. A white paper issued by Treasury had sought to address allies’ objections to the IRA provisions by broadening the definition of “free trade agreement.”

Senate Finance Committee Chair Ron Wyden (D-OR) has said he has no interest in reopening the IRA, but the new Manchin bill could increase pressure on Treasury’s final implementing rules. Treasury Secretary Janet Yellen on January 24 told the Wall Street Journal that Japan and the European Union would need to negotiate new trade agreements with the United States to meet the IRA’s mineral-sourcing requirements.

Three unions representing autoworkers, steelworkers and machinists teamed up with environmental group Sierra Club and consumer advocacy group Public Citizen to urge the Biden administration not to change the IRA’s EV tax credit rules.

Contact: Chris Benscher

China Tech Controls

The United States reportedly expects to soon reach an agreement with Japan and the Netherlands on restricting the sale of advanced semiconductor manufacturing equipment to Chinese parties. The United States adopted controls last October and has sought Japanese and Dutch cooperation,  as the two countries are home to major semiconductor manufacturers ASML and Nikon. Japan and the Netherlands may not formally announce the move but are expected to implement controls over the coming weeks, following domestic processes.

Further developments are expected in the coming months but likely not before Secretary of State Blinken’s planned February 5-6 visit to Beijing. Commerce may announce technical changes to semiconductor restrictions following the January 31 close of a public comment period. The semiconductor restrictions are expected to be the first in a series of expected controls on advanced technologies like quantum computing, artificial intelligence, biotech, and advanced clean energy.

Congress continues to press for a hard line approach. House Foreign Affairs Committee Chair Michael McCaul (R-TX) has repeatedly requested access to Commerce data on licensed exports to China. On January 24, Speaker Kevin McCarthy announced 12 Republican members of the new House Select Committee on the Strategic Competition between the U.S. and the Chinese Communist Party.

Contact: Pat Sheehy

Quick takes

  • Ecuador’s free trade negotiations with Mexico, and consequently Ecuador’s accession into the Pacific Alliance, deadlocked this week over disagreements on agriculture.
  • Congresswoman Debbie Dingell (D-MI) announced on January 25 a new Heartland Caucus expected to include about 40 members of Congress focused on manufacturing, labor, rural health care, infrastructure, and environment issues from the perspective of “not flyover country.”
  • The Senate Agriculture Committee announced four upcoming Farm Bill hearings, with USDA Undersecretary for Trade and Foreign Agriculture Affairs Alexis Taylor scheduled to appear February 1 for the first hearing.
  • The State Department’s Directorate of Defense Trade Controls (DDTC) hinted during a January 24 webinar at possible adjustments to the International Traffic in Arms Regulations (ITAR) to allow general authorizations for certain exports from the U.S. Reportedly, issues with customs software have been the main factor complicating implementation.

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.566 (Nehls, R-TX) Prohibits Federal spending in China.
  • H.R.558 (Issa, R-CA) Would prohibit certain foreign countries from purchasing or leasing property near sensitive sites.
  • H.R.554 (Hill, R-AR) Would deter Chinese aggression towards Taiwan by publishing reports on financial institutions with ties to Chinese officials and their families.
  • H.R.552/H.R.551 (Gooden, R-TX) Would prohibit U.S. contributions to UN organizations/Would direct the Attorney General to report on how U.S. research has benefited China.
  • H.R.545 (Buchanan, R-FL) Would support seasonal industries affected by antidumping and countervailing duty investigations.
  • H.R.540 (Kim, R-CA) Would require the Treasury Secretary to provide more equitable treatment of Taiwan in international financial institutions. 
  • H.R.535 (Connolly, D-VA) Would prohibit the U.S. from recognizing any potential referenda in Russian-occupied, sovereign Ukrainian territory.
  • H.R.513 (Jackson, R-TX) Would prevent foreign influence over agriculture production and supply chains.
  • H.R.510 (Davidson, R-OH) Would limit Chinese influence at the IMF.
  • H.R.506 (Cohen, D-TN) Would designate Russian-based mercenary Wagner Group as a foreign terrorist organization.
  • H.R.503 (Buck, R-CO) Would impose sanctions against TikTok. 
  • H.R.499 (Fallon, R-TX) Would require the SEC to require annual disclosures of investments with ties to China.
  • H.R.457 (Cohen, D-TN) Would establish a list of countries based on the level of corruption and sanction individuals involved.
  • H.R.401 (Allen, R-GA) Would prohibit the National Science Foundation from awarding grants to Chinese military companies and their affiliates.

Senate

  • S.125 (Cotton, R-AR) Would withdraw China from receiving normal trade relations treatment.
  • S.104 (Rubio, R-FL) Would support seasonal industries affected by antidumping and countervailing duty investigations.
  • S.85 (Hawley, R-MO) Would impose sanctions against TikTok.
  • S.68 (Tuberville, R-AL) Would prevent foreign influence over agriculture production and supply chains.
  • S.9 (Cruz, R-TX) Would prevent strategic petroleum reserve exports to China.

Upcoming Congressional hearings 

House

Senate

WHO’S WHO

Arrivals

  • Mr. Axel van Trotsenburg, World Bank Senior Managing Director for Development Policy and Partnerships
  • Mr. Brad Grantz, Senate Commerce Committee Republican Staff Director
  • Ms. Courtney O’Hara Taylor, Senate Environment and Public Works Committee Democratic Staff Director
  • Mr. Dan Sullivan, Senate Commerce Committee Republican Chief Counsel
  • Mr. Jeff Zients, White House Chief of Staff
  • Ms. Sarah Ladislaw, NSC Senior Director for Climate and Energy

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

UPCOMING EVENTS

  • EU Agriculture Council (Brussels), January 30
  • Federal Open Market Committee (Washington), January 31-Feb.1
  • EU-Ukraine Summit (Kyiv), February 3
  • Secretary of State Blinken travels to China, February 5-6
  • Brazilian President Lula da Silva travels to Washington, February 9-10

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

We solve problems