It may only be a matter of time before countries create a trade payment system to avoid U.S. sanctions, said David Mortlock, a trade lawyer and senior fellow with the Atlantic Council.
A House bill would increase export controls on defense items to Hong Kong police, including “nonlethal crowd control items.” The bill, introduced Sept. 10, would require the Trump administration to restrict export license approvals of certain “covered defense articles and services” to the Hong Kong Disciplined Services. If the bill is passed, the covered items would be determined by the Commerce and State departments and sent in a report to Congress. The bill mentions “water cannon trucks, tear gas, rubber bullets, sponge grenades, beanbag rounds, batons, pepper spray, pepper balls and projectile launchers,” as possible options. “I am deeply concerned that American-made police equipment is being used to violently crack down on peaceful protesters in Hong Kong,” Rep. Jim McGovern, D-Mass., who helped introduce the bill, said in a statement. “We ought not to allow American companies to sell this equipment to foreign governments when we see evidence that it is being used for immoral and unjust purposes.” The bill is titled the “Placing Restrictions on Teargas Exports and Crowd Control Technology to Hong Kong Act,” or the PROTECT Hong Kong Act.
A Senate bill would increase export controls on electronic waste and ban exports and re-exports of the waste without a government authorization. The bill, S. 2448, introduced Sept. 9, would also require any approved electronic waste exports to only be exported for “reclamation, recall, or reuse.” Exporters would also have to file certain information in the Automated Export System, including a description and quantity of the exempted waste, the name of each country that will receive the waste, the name of the ultimate consignee and documentation that proves the consignee has “the necessary permits, resources, and competence to manage the exempted electronic waste items,” the bill said. Violators of the proposed regulations would face the same penalties as violators of the Export Administration Regulations. The bill is aimed at preventing the waste from becoming “the source of counterfeit goods that may reenter military and civilian electronics supply chains” in the U.S.
The British government apologized after breaking a court ruling banning it from granting export licenses for defense goods to Saudi Arabia. In a Sept. 16 letter to the United Kingdom Committees on Arms Export Controls, Trade Secretary Lizz Truss said the U.K. allowed two “inadvertent breaches” of the license ban.
The World Trade Organization on Sept. 16 released South Korea’s most recent complaint against Japan in which it requests consultations over the two sides’ trade dispute. The document, dated Sept. 11, outlines South Korea’s issues with Japan’s export restrictions on three chemicals used in the manufacturing of smartphones, TV displays and semiconductors. South Korea said Japan’s restrictions were politically motivated and “unrelated to any legitimate export control considerations.” South Korea also said Japan’s additional moves, including its decision to remove South Korea from a list of trusted trading partners, has caused “unnecessary delay” and “increased scrutiny” for products destined for South Korea. South Korea said it hopes to find a “mutually acceptable date for consultations” with Japan to address the issues.
A U.S. decoupling from China would be a mistake, China’s U.S. ambassador said, criticizing what he called the U.S.’s alarmist foreign policy and its “wrong rationale” for starting a trade war with China. Ambassador Cui Tiankai said decoupling may not even be possible because of the “inseparable links” between the two countries. “And considering China’s advantages in cost, market and supply chain and its growing edge in innovation, to decouple from China is to decouple from opportunities,” Cui said, speaking Sept. 17 in New York.
China is planning to strengthen its export controls through a new law that may be implemented this year, according to a Sept. 16 Lexology post from AnJie Law Firm.
President Donald Trump said the U.S. will increase sanctions on Iran after his administration suggested Iran was behind an attack on Saudi Arabia's oil facilities.
Legislative discussions continue for how to shape legislation in order to regain control of trade policy from the Trump administration as the legislative branch is further pushed to the sidelines, a former senior U.S. trade negotiator said. Barbara Weisel, former assistant U.S. trade representative for Southeast Asia and the Pacific, said Congress is beginning to question how it can retake its constitutionally granted powers over trade, which have been overtaken by the Trump administration and its preference for bilateral negotiations. “One has to believe there are many members of Congress now who are debating and quietly discussing how they are going to adjust this issue,” Weisel said during a Sept. 17 event at the Brookings Institution in Washington, focused on the "America First" trade policy with regard to Japan and Taiwan. “And I think it’s about time.”
The Treasury Department released its proposed regulations for the Foreign Investment Risk Review Modernization Act of 2018, granting expanded authorities to the Committee on Foreign Investment in the United States, Treasury said in a Sept. 17 press release.