The Office of Foreign Assets Control fined Amazon more than $130,000 for violating several U.S. sanctions programs and failing to follow reporting requirements for hundreds of transactions. Amazon processed online orders sent to a range of sanctioned countries in the Middle East and Asia and did not follow the agency’s reporting requirements for more than 300 transactions conducted under a Crimea general license, OFAC said in a July 8 notice. OFAC said the violations were caused by “deficiencies” in Amazon's sanctions screening program.
The Commerce Department on July 8 issued a guidance on the transfer of gun export controls from the State Department (see 2001170030). The 62-page guidance, which includes more than 100 frequently asked questions, outlines Commerce’s approach to the controls, including licensing exceptions, arms reporting, export clearance requirements, recordkeeping and enforcement. The guidance also defines several “key terms” for exports that it now controls, such as the difference between additive manufacturing and 3D printing.
A spike in coronavirus infections among employees in German slaughterhouses is expected to have short-term impacts on global pork trade and long-term consequences for German pork production, the U.S. Department of Agriculture Foreign Agricultural Service said in a July 5 report. The impacts were compounded by China’s decision to ban pork imports from one of Germany’s largest slaughterhouses (see 2006300012), which was one of the main competitors for U.S. pork exports to China, USDA said. Germany will also likely move forward with long-awaited stricter animal welfare regulations now that the COVID-19 pandemic has “put the slaughter industry in the spotlight,” the USDA said. “Currently, there is just too much pressure on the German livestock industry and especially the pork market.”
Canada will no longer allow imports of commercial puppies under eight months of age from Ukraine. Following an investigation into a large shipment of puppies from the country, the Canadian Food Inspection Agency is canceling all import permits for commercial puppies under eight months, and will no longer issue new permits for imports of puppies under eight months from Ukraine, it said in a July 6 statement. “The CFIA's decision is based on investigation findings of possible failures to comply with import requirements, including animal welfare concerns. These actions will remain in effect until the CFIA is satisfied that import conditions and international transport standards are in place and that animals will travel safely in the future,” it said.
The U.S. Department of Agriculture Foreign Agricultural Service issued a report July 2 on eased Chinese requirements for imports of U.S. pet food, which will see improved market access and more speedy import licensing and facility registrations due to the phase one trade deal. The new measures -- which will apply to commercially processed, finished pet food -- also include a reassessment of Chinese retaliatory tariffs and a new tariff exclusion process for pet food imports.
The State Department approved potential military sales to five countries, ranging from $100 million to $3 billion, the Defense Security Cooperation Agency said Tuesday. Under the proposed sales, Argentina would get 27 “M1126 Stryker Infantry Carrier Vehicles” and related equipment, worth about $100 million, DSCA said. The prime contractor is General Dynamics Land Systems. A $2 billion sale to France would include three “E-2D Advanced Hawkeye Aircraft” and related equipment, DSCA said. The principal contractor is Northrop Grumman. The potential $2 billion sale to Indonesia includes eight “MV-22 Block C Osprey aircraft” and related equipment, the agency said. Bell Textron and Boeing are the prime contractors. The $380 million to Lithuania would include six “UH-60M Black Hawk helicopters” and related equipment, DSCA said. The principal contractors are Sikorsky Aircraft Company and General Electric. The potential $3 billion sale to Israel would include about 990 million gallons of petroleum-based products for aircraft and ground vehicles, DSCA said. The U.S. will select vendors based on a “competitive bid process,” the DSCA said.
The Justice Department charged two people for allegedly helping a Brazil construction company bribe government officials in violation of the Foreign Corrupt Practices Act, a July 6 news release said. Luis Enrique Martinelli Linares and Ricardo Alberto Martinelli Linares aided a “massive” bribery and money laundering scheme by Odebrecht S.A., which previously pleaded guilty to paying more than $700 million in bribes to government officials and others to retain business and secure contracts (see 1911210023 and 1910150030), DOJ said.
Rep. Rick Larsen, one of the chairpersons of the New Democrats' trade task force, told the Washington International Trade Association that he thinks the U.S. has not gotten any benefit out of the Trump administration's trade war. When asked by International Trade Today if a Joe Biden administration would roll back the Section 301 tariffs, even if China does not give concessions on industrial subsidies or state-owned enterprises, Larsen said, “I think the next administration needs to reset where we are, how we’re going to approach this.”
The U.S. Chamber of Commerce praised the beginning of U.S.-Kenya trade talks July 7 in Nairobi. Scott Eisner, president of the U.S.-Africa Business Center at the U.S. Chamber of Commerce, issued a statement that said: “A deepening U.S.-Kenya commercial relationship will benefit the U.S., Kenya, and the entire African continent. It is our hope that when complete, the agreement will not only be the first of its kind between the U.S. and a sub-Saharan African country, but also lay the groundwork to strengthen and deepen our relationships with economies across the continent by providing the necessary legal protections and enduring, reciprocal trade. With the African Growth and Opportunity Act set to expire in 2025, a Kenya free trade agreement will provide American businesses the certainty they need to continue investing in this growing market.”
A letter from 41 trade groups -- including the U.S. Chamber of Commerce, the U.S.-China Business Council, and others in information technology, apparel, agriculture and pharmaceuticals -- asks both Chinese and American lead negotiators to “redouble efforts to implement all aspects of the Agreement, including purchases of U.S. manufactured goods, energy products, services, and agricultural goods, where implementation seems to be lagging.”