Canada April 13 issued a guidance for companies doing business with Myanmar, outlining the sanctions and export control measures it has taken against the country and describing risks for industry. Canada stressed it will review sanctions and export permits case by case but will not issue licenses to sell arms or other defense related items to Myanmar if the exports could lead to human rights abuses. Companies should “conduct robust due diligence,” Canada said, including an examination of their supply chains to determine if their activities are supporting military-owned entities. “[W]e expect Canadian companies to uphold the highest standards of human rights and business conduct, whether they are doing business at home or abroad,” Mary Ng, Canada’s international trade minister, said in a statement. “We strongly recommend to any company operating in Myanmar or doing business with Myanmar-related entities to assess its operations and take appropriate action to uphold these standards.”
A bill introduced last month (see 2103110018) by nine Republican senators calls for more export controls and sanctions to allow the U.S. to better compete with China and counter that country’s illegal trade practices. The bill's text, released this week, includes several suggestions for U.S. export control policy, and calls for updating export controls and investment restrictions to better cover critical technologies. The bill also suggests the U.S. collaborate more closely with allies on licensing decisions and urges the administration to ensure that exports of drones “remain subject to the same export considerations as military aircraft.”
Rep. Michael McCaul, R-Texas, is concerned that China is violating U.S. sanctions against Iran, and asked the State Department about potential actions it may take. McCaul, the top Republican on the House Foreign Affairs Committee, said China is reportedly buying Iranian oil “in defiance of U.S. sanctions,” according to an April 12 letter to Secretary of State Antony Blinken. He asked Blinken to confirm whether those reports are true, whether the administration plans to punish China for violating the sanctions, whether China is selling weapons to Iran and what kind of impact this is having on U.S. companies. A State Department spokesperson declined to comment.
The Office of Foreign Assets Control added one person to its Specially Designated Nationals List and removed two others, an April 13 notice said. The agency added Audias Flores Silva, a regional commander for the Cartel de Jalisco Nueva Generacion, a Mexican drug cartel, OFAC said April 14. The agency also deleted entries for Juan de la Cruz, the director of the Banco Nacional de Cuba, and Jose Gutierrez Reyes, who is listed with an address in Mexico. OFAC did not provide further information on the SDN deletions.
U.S.-China Business Council President Craig Allen, former deputy assistant secretary for China in the State Department, said that the Chinese were taken by surprise by how little has changed in the new administration. “There was an expectation between [Donald] Trump and [Joe] Biden, there would be a loosening of technology regulations,” he said, but Commerce Secretary Gina Raimondo has taken steps to tighten export restrictions that affect Huawei, and there have been actions under the new Information, Communications and Telecommunications Services (ICTS) regulations.
The U.S. should quickly pass a bipartisan bill that would increase U.S. investment in technology research and high-tech manufacturing, technology experts and academic leaders told the Senate April 14. Some lawmakers argued that the bill, which is partly aimed at boosting U.S. technology competition with China, should also include measures to better protect U.S. critical technologies from being stolen by the Chinese government.
Former Assistant U.S. Attorney in the Northern District of Illinois Shoba Pillay joined Jenner & Block's Chicago office, the firm announced in an April 13 press release. Pillay specializes in fraud, cybercrime, data privacy, export control and sanctions, trade secrets and intellectual property cases, and will bring that experience to both the investigations, compliance and defense practice and data privacy and cybersecurity practice, where she will be a partner.
A United Kingdom strategic export controls annual report lists all export licensing decisions made by the British government from 2020. For all of last year, the U.K. received 12,252 standard individual export license applications, granting 11,974 of them. The government also issued 353 open individual export licenses out of the 393 applications it received.
A lawyer for Turkish government-owned bank Halkbank made the case to the U.S. Court of Appeals for the 2nd Circuit that it is immune from prosecution due to protections under the Foreign Sovereign Immunity Act, in an April 12 oral argument. Simon Latcovich of Williams & Connolly asserted that the government had no jurisdiction over the bank since the bank is owned by the Turkish government and that the FSIA does not extend jurisdiction over sovereign states for criminal cases. Latcovich also claimed that even if the FSIA allowed for this jurisdiction, Halkbank would still be exempt from prosecution under common law. His argument follows that if the courts were to find that immunity for sovereign states was not extended to criminal cases under the FSIA, this would erode the congressional mandate of the act without a word from the body itself.
The Australian Sanctions office will hold a virtual information session later this month to provide an overview of its sanctions regimes, permit application processes, the penalties it administers and guidance for complying with Australia’s sanctions, it said April 13. The office will also take questions during the April 29 session, 11 a.m. local time and 9 p.m. EDT.