Brazil modified the administrative structure of the Ministry of Economy’s Foreign Trade Chamber to prioritize trade policy and “de-bureaucratise day-to-day decisions with an impact on trade,” the Hong Kong Trade Development Center said in an Oct. 14 report. Among the changes is the addition of a “consultative council” representing Brazil’s private sector, the report said. The changes could lead to an effort “to pursue trade liberalising measures in Brazil” because of the ministry’s tendency toward market liberalization measures, HKTDC said. But there is also a belief that the creation of additional committees within the chamber “could slow down the overall decision-making process.”
The Treasury Department recently posted a summary of public briefings in September by officials on proposed regulations under the Foreign Investment Risk Review Modernization Act of 2018 (see 1909180018).
A Turkish government-owned bank was charged with fraud, money laundering and conspiracy to violate the International Emergency Economic Powers Act after working with Iran to evade U.S. sanctions, the Justice Department said in an Oct. 15 press release. The bank -- Turkiye Halk Bankasi A.S., also known as Halkbank -- helped run the “multibillion-dollar scheme” by deceiving U.S. regulators and foreign banks and lying to U.S. authorities, the press release said.
About 350 companies, trade associations and local manufacturing groups and chambers of commerce are urging Congress to ratify the United States-Mexico-Canada Agreement "as soon as possible this autumn." The letter, led by the National Association of Manufacturers and signed by giants like Ford, GM, Fiat Chrysler, Caterpillar, IBM, GE, Honeywell, Bayer and Bristol-Myers Squibb, was sent Oct. 15. It said that ratification "is essential to promoting certainty and growth for manufacturing businesses." Volvo North America and Mahindra Automotive America signed the letter, but BMW and Mercedes -- whose supply chains would likely have to change to meet stricter rules of origin -- did not. The letter referred to trade facilitation -- though not explicitly higher de minimis levels in Canada and Mexico, in saying that the USMCA will eliminate red tape at the border, and make "it easier for small and medium-sized businesses to sell into these critical markets."
House Ways and Means Committee Chairman Richard Neal, D-Mass., said Mexico has made "another significant step forward" by promising to fully fund new labor courts that will be integral to major labor reform in that country. Neal said he, fellow working group member Rep. Jimmy Gomez, D-Calif., and committee member Rep. Bill Pascrell, D-N.J., met with the Mexican president for an hour and 45 minutes during the recess, an hour longer than scheduled.
The European Union Council adopted a framework for sanctions against Nicaragua for human rights abuses, “repression of civil society” and the undermining of democracy, the council said in an Oct. 14 press release. The sanctions framework includes travel bans, asset freezes and block payments and loans to designated people or entities.
It is “impossible” for U.S. exporters to fully comply with Commerce Department restrictions on transfers within China because Chinese courts do not enforce the restrictions, according to an Oct. 13 post by Harris Bricken.
Co-chairs of the Department of Homeland Security Information and Communications Technology Supply Chain Risk Management Task Force urged House Homeland Security Committee members to consider enacting new liability protections and incentives to encourage companies and foreign governments to share information on threats to the supply chain. Committee leaders appeared interested, during an Oct. 16 hearing, in further protections. They invoked perceived supply-chain threats posed by Kaspersky Lab and Chinese telecom equipment manufacturers Huawei and ZTE.
Although Trump administration officials have expressed willingness to mediate the Japan-South Korea trade dispute, trade experts suggested the administration -- and members of Congress -- are not currently focused on intervening.
Two bills that could affect trade with Hong Kong and two resolutions criticizing Hong Kong and China passed the House by voice vote on Oct. 15. H.R. 4270, the PROTECT Hong Kong Act, would ban the export of tear gas, rubber bullets and pepper spray to Hong Kong, so that U.S. companies aren't complicit with crackdowns on protestors (see 1909190040). The Hong Kong Human Rights and Democracy Act, H.R. 3289, requires the State Department to affirm that Hong Kong still deserves its special status in customs and export controls because the one country, two systems agreement for China and Hong Kong is still in force. That bill would also sanction people involved in human rights abuses and the suppression of “basic freedoms” in China and Hong Kong, and would have an annual evaluation of Hong Kong's export control compliance.