China should address and clarify several of its proposed export control provisions announced in its draft export law (see 2002040059 and 2001100047), more than 10 U.S., European and Japanese trade associations said in comments. The comments, released in February by the Center for Information on Security Trade Control, said the country should take “careful consideration” before finalizing the law and said trade associations have “significant outstanding concerns.” The comments were endorsed by the U.S. Computing Technology Industry Association and the National Association of Manufacturers.
Senate Communications Subcommittee Chairman John Thune, R-S.D., introduced legislation on March 5 meant to make sure “U.S. communications infrastructure security is a clear negotiating objective of our country’s trade policy,” he said in a news release. “This legislation would ensure the security of equipment and technology that create the global communications infrastructure are front and center in our trade negotiations, because you can’t have free trade if the global digital infrastructure is compromised.”
The coronavirus outbreak is expected to decrease global exports by $50 billion as the spread of the virus continues to disrupt global supply chains, according to a March 4 report by the United Nations Conference on Trade and Development. The slowdown is directly tied to China’s manufacturing Purchasing Managers Index, which fell by 22 points in February, implying a 2% reduction in exports on an annual basis, the report said. The fact that China is a “central manufacturing hub” will have significant “repercussions” for countries reliant on trade with the country, the report said. “Any slowdown in manufacturing in one part of the world will have a ripple effect in economic activity across the globe because of regional and global value chains,” UNCTAD Secretary-General Mukhisa Kituyi said in a statement.
The Commerce Department is “pushing forward” on increased restrictions of foreign exports to Huawei that contain U.S. content, Secretary Wilbur Ross said during a March 5 Senate hearing. Sen. Chris Van Hollen, D-Md., told Ross he hopes Commerce follows through with the restrictions -- which would include changes to the de minimis rule and the Direct Product Rule (see 2002050047) -- adding that Commerce has been “appropriately aggressive” in pursuing more stringent controls on technology exports to Huawei and China. But Van Hollen noted that Commerce has faced pushback from other parts of the Trump administration, including the Defense and the Treasury Departments (see 2001240012).
The United Kingdom’s Export Control Joint Unit updated its guidance for its revoked open general export licenses for chemicals, according to a March 3 notice. The guidance provides revoked versions of the OGELs as a reference for exporters, the notice said.
The World Trade Organization must do more to address unfair trade practices, including trade advantages arising from industrial subsidies, state-owned companies and forced technology transfers, United Kingdom Trade Secretary Liz Truss told the WTO, according to a March 3 news release. To do this, WTO members should “update the WTO rulebook” and develop rules for developing countries to “trade their way to prosperity.” She added that more WTO members must advocate for “working together, not protectionism,” and said, as an independent member of the WTO, the U.K. will push for “liberalisation in trade.”
The government of Canada issued the following trade-related notices as of Mar. 4 (note that some may also be given separate headlines):
Global Affairs Canada is seeking comment on the “Origin Quota commitment for Vehicles under the Comprehensive Economic Trade Agreement (CETA) with the European Union,” it said in a notice. Comments are due April 22.
Cambodia recently introduced a measure to allow certain value-added taxes on certain food supplies as a “state-charge,” according to a March alert from KPMG. The VATs cover certain meat (including cattle, buffalo, goat, sheep, pork, chicken and ducks), eggs, fresh and saltwater fish, sugar, salt, fish sauce and soy sauce. VATs on those products will be “treated as a state-charge” as of Jan. 1, 2020, until Dec. 31, 2021.
The State Department approved a potential military sale to Morocco worth about $240 million, the Defense Security Cooperation Agency said March 3. The sale includes 25 “Heavy Equipment Recovery Combat Utility Lift and Evacuation System (HERCULES) vehicles,” 25 machine guns, global positioning systems, smoke grenade launchers and more. The principal contractor is BAE Systems.