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International Issues Update 2023/31

By August 11, 2023No Comments

ON OUR DESKS

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

These are just examples of client service. How can we help you? Email any IBC counsellor for assistance or consult our issues list to find the expert you’re looking for.

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

WIBC DISCUSSIONS

Upcoming events:

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

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

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

YOU NEED TO KNOW

China

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

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

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

Contact: Patrick Sheehy 

New disclosure requirements

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

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

Contact: Chris Benscher

Quick takes

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

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

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

WHO’S WHO

Arrivals

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

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

UPCOMING EVENTS

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

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