The European Union renewed its North Korea sanctions for one year, it said July 30. The sanctions include 59 people and nine entities for supporting North Korea’s weapons programs and for sanctions evasion.
The Bureau of Industry and Security on June 30 formally issued a notice with details (see 2007130018) of its June decision to suspend Hong Kong export licenses (see 2006300050 and 2006290063), outlining which licenses are impacted and reiterating the agency’s savings clauses for affected exports. BIS also said it is reviewing the Export Administration Regulations along with other agencies to “assess whether additional amendments are warranted.”
The U.S. is working on more measures to dissuade companies from doing business in China, administration officials said, including through financial incentives and more industry outreach about enforcement risks. Commerce Department official Nazak Nikakhtar and State Department official Keith Krach also said the administration is working to collaborate more with trading partners against China.
The U.S. said that it has received no details on changes to subsidized loans for Airbus from France and Spain, so “no one can take seriously” that the changes addressed the entirety of the World Trade Organization decision that the subsidies distorted the market. The U.S. made the comments at a Dispute Settlement Committee in Geneva July 29, a Geneva trade official said. The U.S. representative also said the European Union didn't address the other six measures the WTO identified as distorting. The EU had said last week that the changes resolved the case, so the 15% tariffs on Airbus planes and 25% tariffs on other EU exports should be removed immediately (see 2007240057).
The United Kingdom’s Department for International Trade published guidance July 29 on applying for a trade remedies investigation. Starting Aug. 5, the U.K.’s Trade Remedies Directorate will accept applications to investigate imports “causing or threatening injury” to U.K. industry, the guidance said. But the U.K. clarified that the directorate can investigate imports only in cases in which there is already a European Union investigation taking place and will not be able to investigate other imports until after the Brexit transition period ends on Jan. 1, 2021.
The European Commission extended its customs duties and value-added tax exemptions on imports of medical equipment to help combat the COVID-19 pandemic, a July 23 notice said. The exemptions, “uninterrupted” through Oct. 31, apply to masks, protective equipment, testing kits, ventilators and “other medical equipment.” The EU in April applied the exemptions for six months with retroactive effect, from Jan. 30 until July 31 (see 2004030016).
The State Department approved a potential military sale to Kuwait worth about $59.6 million, the Defense Security Cooperation Agency said July 28. The sale includes M1A2K training ammunition and equipment. The principal contractor is BAE Systems.
Experts disagreed on the utility of the Trump administration approach to World Trade Organization reform, during a Senate Finance Committee hearing on the topic, and senators on the left and right suggested that the negotiated trade rules disadvantage Americans.
Democratic presidential candidate Joe Biden told the United Steelworkers trade union that a core part of his trade strategy “will be to enlist our international allies to collectively tackle unfair practices by China in order to ensure American steelworkers have good, plentiful union jobs. Trump has humiliated and infuriated our allies.”
The United Kingdom issued a July 27 sanctions guidance for companies operating in the maritime shipping sector, detailing common illegal shipping practices, restrictions on trade with North Korea, Iran, Libya and Syria, and potential penalties. Similar to shipping guidance issued by the U.S. (see 2005140039), the U.K.’s version outlines red flags and common sanctions evasion practices, including ship-to-ship transfers, disabling of automatic identification systems (AIS) and false documentation. The guidance also urges U.K. companies and people to conduct due diligence, including AIS clauses in contracts, regular sanctions screening and frequent verifications of letters of credit and bills of lading. “The onus is on the organisation to ensure that it has put in place sufficient measures to ensure it does not breach financial sanctions,” the guidance said.