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International Issues Update 2023/25

By June 30, 2023August 1st, 2023No Comments

ON OUR DESKS

  • Advising on humanitarian waivers from U.S. export controls and sanctions
  • Advising on possible inflection points in the U.S.-China relationship
  • Monitoring U.S.-EU negotiations on a Critical Minerals Agreement (CMA) and 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:

  • June 29: Assistant Secretary of Health and Human Services for Global Affairs Loyce Pace, The administration’s global health priorities at the WHO, including pandemic treaty negotiations, health systems strengthening, and NCD recommendations

Upcoming events:

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

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

Trade Policy

For the first time in seven years, the President’s Export Council (PEC) met on June 29, with newly-appointed private sector representatives from corporate America, labor, and academia providing proposals and recommendations for the Biden administration on how to promote U.S. exports. The PEC presented two recommendation letters, the first on strengthening U.S. competitiveness in innovation and technology, and the second on trade facilitation.  

In terms of the innovation agenda, the PEC called for the alignment of export promotion and development programs with place-based investments and competitiveness initiatives, increasing manufacturing capacity in the technical frontier, including semiconductors, electric vehicle’s advanced battery technologies, and additive manufacturing, and establishing an Innovation and Manufacturing Coordinator to oversee a whole-of-government approach.  The PEC also said the administration should consider reinstating the President’s Export Council Subcommittee on Export Administration (PECSEA) to understand the potential unintended consequences of export controls on U.S. exports.  

With regard to trade facilitation, the PEC focused on the need to reduce administrative costs at the border, making it easier for U.S. exporters to access foreign markets. The recommendation letter includes a call for an executive order or similar directive to prioritize and coordinate trade facilitation efforts across all federal agencies. The strategy should make trade facilitation a key priority in all U.S. trade and international economic activities and establish a new mechanism for feedback from the private sector, according to the PEC.  

Secretary of Commerce Gina Raimondo released the 2023 U.S. National Export Strategy (NES) at the PEC meeting. The NES focuses on promoting equitable economic growth, assisting smaller companies getting into the business of trade, U.S. competitiveness in climate and clean technologies exports, and the recovery of sectors disproportionately affected by the pandemic, like manufacturing. The strategy also highlights U.S. involvement in the Partnership for Global Infrastructure and Investment (PGII).

Contact: Stephen Ziehm

China

The United States and major trading partners are preparing to implement new export controls against China in the coming weeks. Japan and the Netherlands will implement previously-agreed measures restricting advanced semiconductor manufacturing equipment. Japan’s restrictions will be effective in July, with the Dutch publishing plans on June 30 to impose their own measures in September. Reports indicate these measures will be complemented with U.S. entity listings of six Chinese semiconductor production facilities, barring them from receiving any equipment subject to U.S. jurisdiction. 

Meanwhile, China passed a new “foreign relations law” on June 28, effective July 1, articulating the basic principles by which the country conducts foreign affairs. Wang Yi, China’s seniormost diplomat, described the law as “a legal basis for China to exercise its legitimate rights to counter sanctions and interference.” The law asserts “the right to take corresponding countermeasures and restrictive measures” against foreign sanctions, leaving the form of these countermeasures to administrative discretion. 

Western firms could be targeted in a tit-for-tat fashion under the law, much like a recent ban on Chinese purchases from U.S. semiconductor firm Micron, but countermeasures could take a variety of forms depending on the underlying sanction. The law also emphasizes the use of “law enforcement and judicial measures … to safeguard national sovereignty, security, and development.” This is a possible reference to recent changes to Chinese espionage law, also effective July 1, broadening the scope of the laws to include a broad variety of common business, reporting, and due diligence activities. Chinese authorities have already begun a crackdown on western due diligence and risk consultancies in China in advance of entry into force. 

Contact: Pat Sheehy

Quick takes

  • The Bureau of Industry and Security announced June 29 a formal coordination mechanism for export control enforcement among the “Five Eyes” countries – Australia, Canada, New Zealand, the United Kingdom, and the United States. The effort will allow export enforcement authorities to undertake more complex multijurisdictional actions. 
  • At the second meeting of the Labor Council under the United States-Mexico-Canada Agreement (USMCA), officials issued a joint statement reaffirming their full commitment to the effective implementation of USMCA labor obligations and announced a trilateral dialogue on forced labor enforcement to exchange information on best practices related to addressing forced labor risks in supply chains.
  • The United States signed a Memorandum of Understanding (MOU) with Mongolia during a tripartite dialogue along with the Republic of Korea to advance secure and resilient critical mineral supply chains in the Indo-Pacific region.  The United States and Republic of Korea are coordinating through the Minerals Security Partnership (MSP) to catalyze investment in the critical minerals sector.  
  • Last week the House and Senate Armed Services Committees completed mark-ups of their respective versions of the National Defense Authorization Act (NDAA) for Fiscal Year 2024, the first step in a months-long process to establish defense funding levels and set policies for the Defense Department and the Energy Department’s national security programs.  The bills now move to the House and Senate floors for consideration after the July 4th recess.  

NOTICES, BILLS & HEARINGS

Federal Register Notices

Newly Introduced Legislation

House

  • H.R.4319 (Lofgren, D-CA) Would amend Immigration and Nationality Act to provide terms and conditions for nonimmigrant workers performing agricultural labor or services

WHO’S WHO

Arrivals

  • Cecilia Rouse, Brookings Institution President
  • Dana I. Shubat, Deputy Chief of Staff at Office of Legislative Affairs at the White House
  • Lisa Wang, Judge for the Court of International Trade (Nomination)

Departures

  • Emily Haber, German Ambassador to the United States

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

UPCOMING EVENTS

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

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