World Trade Organization members should do more to prevent export restrictions on medical goods and keep medical and food supply chains open, said Zhang Xiangchen, China’s ambassador to the WTO. Zhang also called on more cooperation between WTO members to combat the pandemic, which he said hasn’t materialized and has helped cripple the WTO. “The reason behind the poor performance [of the WTO] is not only due to the nature and the scale of the crisis,” Zhang said during a May 12 webinar hosted by the Asia Society, “but also the lack of leadership and the diminishing trust among members.”
The Treasury Department, the State Department and the Coast Guard issued a May 14 guidance on illegal shipping and sanctions evasion practices by Iran, North Korea and Syria. The guidance aims to help traders in the maritime industry -- including the energy and metal sectors -- avoid doing business with customers trying to avoid U.S. sanctions. The 35-page guidance updates previous shipping advisories, including a guidance on illegal North Korean ship-to-ship transfers (see 1903210052).
The Commerce Department issued a notice that amends the direct product rule to so that it applies to certain foreign-made items designated with a new footnote in Commerce’s Entity List. It also applies that footnote to 93 entries on the Entity List for Huawei and its affiliates. The interim final rule takes effect May 15.
The Commerce Department announced increased restrictions on foreign-made chips exported to, and made by, Huawei and its affiliates, and said it does not expect to issue another temporary general license extension for the Chinese technology company after its latest 90-day renewal expires Aug. 13.
Trade groups that have been active in pushing for different intellectual property approaches in India have formed a new coalition called the Alliance for Trade Enforcement, they announced May 13. Brian Pomper, a former Senate Finance Committee chief trade counsel, is the AFTE executive director. The group includes manufacturing trade groups, pharmaceutical interests, software and telecom interests, and the National Foreign Trade Council and U.S. Council for International Business. They noted that the Special 301 Report recently released by the Office of the U.S. Trade Representative identified 33 countries that don't adequately protect IP rights, and said “many of those countries are repeat offenders.” Pomper said AFTE will work with the administration and Congress to dismantle trade barriers such as high tariffs, complex and opaque taxes targeting imports, and laws that do not give intellectual property the protection that USTR says is proper.
The value of global trade next quarter is projected to fall 27% compared with the second quarter of 2019, according to a new report coordinated by the United Nations Conference on Trade and Development. The UN was joined by the International Monetary Fund, the European Central Bank, the Organization for Economic Cooperation and Development, the World Trade Organization and the World Bank, among others, to produce the report. Some of that projected drop is due to lower volume of goods, and some of it is due to the price of oil plummeting. The report also found that almost half of international mail is stranded, and that customs clearance times for small packages is taking 32 times as long -- jumping from an average of two hours to 64 hours. The report attributed the slowing of clearance to “availability of labor.”
House Energy and Commerce Committee Chairman Frank Pallone, D-N.J., and Rep. Peter DeFazio, D-Ore., want the U.S. to withdraw from the World Trade Organization. If their resolution, and the resolution introduced by Sen. Josh Hawley, R-Mo., were to pass before the deadline set up in the agreement that founded the WTO, and Trump either signed it, or they overrode his veto, the U.S. would exit the institution. “It is time for the United States to withdraw from this institution and start prioritizing American workers over international corporations,” Pallone said in a press release.
The European Commission on May 11 published guidance on delivering humanitarian goods to Syria despite European Union sanctions. The guidance will be the first in a “series” of “comprehensive” frequently asked questions provided to industry on exporting aid to sanctioned countries, the commission said in a May 12 notice. The guidance clarifies responsibilities of exporters and should help “speed up the channeling of equipment and assistance” to Syria. “Sanctions should not stand in the way nor impede the delivery of essential equipment and supplies necessary in the global fight against the coronavirus pandemic,” European Commission Vice President Josep Borrell said in a statement. “We need to ensure timely assistance and avoid negative consequences for the populations of conflict affected areas, who already are bearing a heavy burden.”
A global group of dairy organizations urged the European Union to refrain from adopting support measures for its dairy industry that will “significantly” harm the global dairy market, according to a May 12 press release from the National Milk Producers Federation. The EU measures, which include private storage aid for the dairy sector, will allow those producers to temporarily withdraw their products from the market, would “artificially distort prices for an extended period and displace commercial competition,” the NMPF said. “Exporting large quantities of government-purchased [skim milk powder] and butter at below-market rates onto the world market will prolong the deeply challenging environment under which dairy sectors are operating worldwide,” the NMPF said.
The government of Canada issued the following trade-related notices as of May 13 (note that some may also be given separate headlines):