FedEx is appealing a U.S. court’s September decision to dismiss the company’s 2019 lawsuit against the Bureau of Industry and Security (see 2009110038), according to court records filed Nov. 5. The shipping company told the U.S. District Court for the District of Columbia that BIS was acting outside the authority of the Export Administration Regulations by applying overly burdensome liability standards on carriers (see 1906250030). But BIS said FedEx’s allegations were politically driven (see 1909110073) and the court said FedEx failed to prove the allegations (see 2009110038). In September, FedEx said it was “disappointed” by the court’s ruling and was considering an appeal (see 2009140003).
The United Kingdom on Nov. 9 published a guidance on the country’s free trade agreement with Ukraine after the U.K. leaves the European Union. The guidance includes information on the trade relationship between the two countries, including tariff rates, rules of origin provisions and intellectual property provisions. The trade agreement is scheduled to take effect Jan. 1, 2021.
The Office of Foreign Assets Control sanctioned 17 Syrian and Lebanese people and entities for operating in Syria’s oil industry and supporting the Bashar al-Assad’s regime oil production network, according to a Nov. 9 press release. The sanctions target Syrian military officials, members of Syria’s Parliament, Syrian government entities and both Syrian and Lebanese people trying to “revive Syria’s deteriorating petroleum industry,” OFAC said.
The United Kingdom’s Office of Financial Sanctions Implementation amended and added sanctions entries related to Belarus, Syria and Turkey. OFSI on Nov. 9 amended two entries under its Turkey sanctions regime: Mehmet Ferruh Akalin and Ali Coscun Namoglu. The U.K. also added 12 government officials and amended three entries under its Belarus sanctions regime, and added eight entries to its Syria regime.
The European Union will officially increase tariffs Nov. 10 on about $4 billion in U.S. goods due to past tax breaks for Boeing, the European Commission said Nov. 9. The World Trade Organization in October granted the EU permission (see 2010130029) to levy the tariffs, which were also endorsed by WTO members (see 2010280047).
The Bureau of Industry and Security had planned to submit several export control proposals for the 2020 Wassenaar Arrangement but will have to wait another year due to disruptions caused by COVID-19 (see 2004290044). Matt Borman, the Commerce Department's deputy assistant secretary for export administration, said Wassenaar has been unable to meet this year and could not gather recommendations for dual-use controls from member states.
Microchip Technology Inc. halted all Huawei shipments in mid-September in compliance with further Commerce Department export restrictions on the Chinese tech giant imposed in August (see 2008170029), President-Chief Operating Officer Ganesh Moorthy said on a Nov. 5 investor call for fiscal Q2 ended Sept. 30. Huawei was the source of about 2% of Microchip’s Q2 revenue, down sequentially from Q1, according to Moorthy, who will succeed Steve Sanghi as CEO March 1, 2021, as Sanghi transitions to executive chairman. Microchip is working with Commerce “to apply for licenses for products and technologies that we believe have no impact” on U.S. national security, Moorthy said. “We do not know if or when such licenses may be granted,” so Microchip assumes no Huawei revenue in the fiscal third quarter ending Dec. 31, he said. Huawei's push to complete manufacturing of all products before the shipment ban took effect caused wide-scale supply-chain “constraints” during the September quarter, he said. The rush of its competitors to replace the business Huawei lost “further stressed the supply chain,” he said. The “ongoing shift” of semiconductor manufacturing out of China to avoid the Section 301 tariffs also pressured “the capacity in other Asian countries where we manufacture through our partners,” he said. The supply chain disruptions “are continuing into the December quarter,” he said.
The World Trade Organization announced on Nov. 6 that a planned meeting for Nov. 9 to choose the next director-general for the organization will be postponed until further notice. “It has come to my attention that for reasons including the health situation and current events, delegations will not be in a position to take a formal decision on 9 November,” Ambassador David Walker, chair of the general council, said. The U.S. has opposed Ngozi Okonjo-Iweala, the candidate most likely to win consensus (see 2010280051), as the Office of U.S. Trade Representative says the WTO needs someone with trade experience. Okonjo-Iweala is an economist with experience at the World Bank and nonprofits, as well as government service (see 2010290030).
The European Union’s Directorate-General for External Policies released an October report on sanctions against Iran and the future of the Joint Comprehensive Plan of Action. The report includes an overview of the EU’s foreign policy objectives for Iran, the return of U.S. sanctions against Iran (see 2009210022) and how the EU should move forward. The report recommends the EU remain committed to the JCPOA and reject U.S. calls for sanctions. “Europe should continue to send clear messages to Tehran that it is not going to align with the US maximum pressure campaign and will remain committed to the deal, despite the challenges faced,” the report said.
The Canada government issued the following trade-related notices as of Nov. 6 (some may also be given separate headlines):