The House Ways and Means Committee has invited a union official, a commissioner from the United States-China Economic and Security Review Commission, a former assistant U.S. trade representative, a major university president, and two farmers to testify on U.S-China trade competition. The hearing, which starts at 10:30 a.m. Feb. 26, will include testimony from Tim Stratford, the former assistant USTR; Thea Lee, the commissioner who is also president of the left-of-center think tank Economic Policy Institute; Rafael Reif, president of the Massachusetts Institute of Technology; Owen Herrnstadt, chief of staff for the Machinists union; Tim Dufault, a Minnesota farmer; and Richard Guebert Jr., president of the Illinois Farm Bureau.
The Trump administration should sanction Russia for interference in the 2020 presidential election, Sens. Sherrod Brown, D-Ohio; Chuck Schumer, D-N.Y.; and Bob Menendez, D-N.J., said in a Feb. 24 letter to Treasury Secretary Steven Mnuchin and Secretary of State Mike Pompeo. The three senators urged the administration to sanction anyone responsible for the interference or for providing “material or financial support” to those responsible. “It is long past time” for the administration to enact sanctions under the Countering America’s Adversaries Through Sanctions Act and the International Emergency Economic Powers Act, the letter said.
At a press event during President Donald Trump's visit to India, both he and Prime Minister Narendra Modi were vague on how trade tensions might be eased between the two countries. A senior administration official said before the trip that India's announcement of higher tariffs precluded a mini-deal that would have restored India to the Generalized System of Preferences benefits program (see 2002210041). Trump said he'd been talking with Modi about how to forge an economic relationship “that is fair and reciprocal. Our teams have made tremendous progress on a comprehensive trade agreement and I’m optimistic we can reach a deal that will be of great importance to both countries.” He said U.S. exports to India are up nearly 60 percent since he took office.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he doesn't expect the U.S. to negotiate over the tariffs it has put on European goods like Airbus planes, Scotch whiskey, French wine, and Spanish wine and olive oil until the World Trade Organization rules on Boeing subsidies. Currently, there are 10% tariffs on Airbus planes and 25% tariffs on the wine, liquor and food items; the aircraft tariff is set to climb to 15% on March 18. The Boeing ruling is not expected for several months.
The Red Cross was granted a sanctions waiver by the United Nations to supply virus-fighting goods to North Korea to combat the coronavirus epidemic, according to a Feb. 24 news release from the International Federation of Red Cross and Red Crescent Societies. The Red Cross said the UN granted the waiver with “speed and urgent attention given,” which will allow the country to import certain humanitarian supplies.
The Commerce Department Bureau of Industry and Security issued guidance Feb. 25 clarifying that the virus causing the outbreak of the coronavirus disease, SARS-CoV-2, will continue to be classified under the Export Control Classification Number EAR99, meaning export licenses are generally not required for exports of the virus. BIS said it issued the guidance in response to a report recently published by the International Committee on Taxonomy of Viruses, which classified the virus, SARS-CoV-2, as belonging to a species similar to SARS-CoV, a virus controlled under the Export Administration Regulations under ECCN 1C351.a.46. But because SARS-CoV-2 is a “genetically distinct virus,” “causes a clinically distinct disease” and the “specifics of the disease … are still being investigated,” BIS said it considers SARS-CoV-2 to be “distinct” from SARS-CoV, adding that it does not yet warrant increased controls. BIS did warn, however, that some end-users, end-uses and destination countries may require a license for exports of EAR99 items, and exporters “should continue to screen all requests in accordance” with the Export Administration Regulations.
Export Compliance Daily is providing readers with some of the top stories for Feb. 18-21 in case you missed them.
China has taken “numerous actions” to begin implementing its agricultural purchase commitments under the U.S-China phase one trade deal, the Office of the U.S. Trade Representative said Feb. 25. China recently announced it will allow imports of U.S. “fresh chipping potatoes” (see 2002240011), lifted an import ban on U.S. poultry and poultry products (see 1911140019) and lifted restrictions on certain pet food imports (see 2002240010) from the U.S. China also updated its list of facilities approved for exporting animal protein, pet food, dairy, infant formula and tallow, updated the list of goods that can be exported to China as feed additives and updated an approved list of imported U.S. seafood species.
The American Apparel and Footwear Association hired Beth Hughes, previously with the International Dairy Foods Association, as vice president, Trade & Customs Policy, the AAFA said in an emailed news release.
The Trade Facilitation Agreement reached a 91% ratification rate among World Trade Organization members three years after it was introduced, according to a Feb. 22 news release from the WTO. The TFA, which applies only to WTO members who accept it, has the “potential” to “slash members' trade costs by an average” of about 14.5%, the WTO said. It reduces “time needed to import and export goods” and helps “expedite the movement, release and clearance of goods across borders.” As the TFA’s implementation rate increased, WTO members have shared information to help traders within the agreement understand varying import, export and transit procedures and the use of customs brokers, single windows and customs contact points, the WTO said.