Consultations over South Korea's monopoly law sought back in March (see 1903150025) occurred July 9, the Office of the U.S. Trade Representative announced. Michael Beeman, assistant U.S. trade representative for Japan, Korea and Asia Pacific Economic Cooperation Affairs, led the consultation in South Korea. The U.S. says South Korea is not living up to its commitments in the U.S.-Korea Free Trade Agreement (KORUS). The agreement says that a party before the Korea Free Trade Commission or the International Trade Commission should be able to review and rebut the evidence against it.

Huawei will remain on the Commerce Department Bureau of Industry and Security's Entity List but "we've opened the door, relaxed a bit the licensing requirements from the Commerce Department where there are not national security influences or consequences," White House Chief Economic Adviser Larry Kudlow said at a CNBC Capital Exchange event July 9. For example, "some of the chip companies would be permitted to sell on a limited basis to Huawei," he said. Those may be parts for "general merchandise" that ends up in countries "where we don't hold any great cachet," such as South Korea or Vietnam, he said. "That's the sort of thing that will be opened up that was closed." Kudlow also noted that China and the U.S. aren't far apart in their trade talks, but said that sometimes the last pieces can be the most difficult to resolve. China has resisted U.S. requests for change in Chinese laws and for enforcement provisions, he said.

The Treasury’s Office of Foreign Assets Control announced sanctions on three Iran-backed Hizballah and Lebanese government officials who helped “bolster Iran’s malign activities,” Treasury said in a July 9 press release. The announcement came two days after the State Department threatened more Iran sanctions in response to the country breaching the enriched uranium limit set in the Joint Comprehensive Plan of Action (see 1907080019).

Export Compliance Daily is providing readers with some of the top stories for July 1-5 in case they were missed.

An Office of Foreign Assets Control official said the agency within the Treasury is trying to “expedite” responses on license applications but does not have the resources to lift certain compliance burdens that have caused headaches for U.S. companies, such as regulations that require businesses to determine which companies are owned 50 percent or more by a sanctioned party. “That’s something were trying to work on,” said Susan Demske, OFAC’s assistant director for regulatory affairs.

The Commerce Department is reviewing export license applications to sell to Huawei in order to “mitigate as much of the negative impacts of the entity listing as possible” and hopes to have decisions “soon,” said Nazak Nikakhtar, Commerce undersecretary for the industry and security.

China and the U.S. have agreed that China has until the end of the year to come into compliance with a World Trade Organization panel ruling on how it administers its tariff rate quotas for wheat, corn and rice. The WTO said that the fact that state-trading enterprises are given specific shares of the lower-duty import quotas, but that those enterprises don't always use all of the quotas nor is the unused portion reallocated to other buyers, means that China restrains the filling of its tariff rate quotas. The notice that the two countries agreed on a compliance timeline was circulated at the WTO on July 4.

The African Continental Free Trade Area officially went into "operational phase" on July 7 after an African Union summit meeting in Niamey, Niger, the African Union said in a July 7 news release. "The AfCFTA will be governed by five operational instruments, i.e. the Rules of Origin; the online negotiating forum; the monitoring and elimination of non-tariff barriers; a digital payments system and the African Trade Observatory," the AU said. Actual trading with reduced tariffs among the 54 member states under the AfCFTA isn't expected to begin until July 2020.

In the July 8 edition of the Official Journal of the European Union the following trade-related notices were posted:

A “substantial number” of industry associations asked the European Commission to better standardize certifications and other procedures related to trade between the European Union and the U.S. to lessen complexities, according to a July 9 report from the commission.