There will be more trade uncertainty in 2020 than in 2019 despite a phase one deal with China, trade experts said during a Jan. 22 panel hosted by the Center for Strategic and International Studies. As trade tensions with Europe come to the foreground and as the U.S. potentially negotiates a more comprehensive deal with Japan, one expert said, the administration will not have enough time and resources to start on phase two of the deal with China as it tries to implement the first phase. Another panelist said the U.S. and China will likely come to a “narrow” phase two deal as the election approaches, but that deal will not provide relief for the international trade environment.
Twenty states and Washington, D.C., sued the State and Commerce departments and asked a court to vacate the Trump administration's recently released final rules to transfer gun export controls to Commerce. The rules, scheduled to take effect March 9 (see 2001170030), will transfer export control authority from the State Department to Commerce for a range of firearms, ammunition and other defense items. The lawsuit said the rules will create a dangerous lack of oversight over technology and software used for the 3D printing of guns, and violates federal “notice-and-comment procedures” and the Arms Export Control Act.
Not only are the purchase requirements in the new China trade deal unrealistic, other developments in China's economy and the trading relationship make them even further out of reach, according to an analysis by economist Chad Bown, a senior fellow at the Peterson Institute for International Economics. Bown notes that the rate of growth needed to meet the targets is higher than when China's economy was growing at 10 percent a year, and China's economy is growing more slowly now. Additionally, the tariffs on Chinese goods that remain in place after phase one are a further drag on the economy.
The Directorate of Defense Trade Controls released a recording of its Jan. 14 webinar about its Defense Export Control and Compliance System (see 2001210025 and 2001090014), DDTC said in a Jan. 23 notice. The webinar covers the “major features of the DECCS release,” including enrollment steps. DDTC plans to release the registration and licensing applications to the DECCS platform in February.
Congress is examining U.S.-Turkey trade ties -- and the changes to trade policy with Turkey -- more closely, and a recent Congressional Research Service report gives policymakers context for decisions they might make. When Turkey invaded Syria after the U.S. withdrew support for Kurdish forces, there was talk of levying sanctions (see 1910100049, 1910170054 and 1910180060), but since the crisis abated, there was no more discussion of sanctions.
New European Commission President Ursula von der Leyen told a German wire service that she and President Donald Trump want an agreement that resolves issues “in a few weeks.” But she didn't say how comprehensive such an agreement would be.
The Drug Enforcement Administration is removing the opioid antagonist 6-beta-naltrexol from schedule II of the Controlled Substances Act, it said in a final rule. Effective Jan. 24, DEA is removing “regulatory controls and administrative, civil, and criminal sanctions applicable to controlled substances, including those specific to schedule II controlled substances, on persons who handle (manufacture, distribute, reverse distribute, dispense, conduct research, import, export, or conduct chemical analysis) or propose to handle” 6-beta-naltrexol, it said.
The Drug Enforcement Administration placed the neurosteroid brexanolone into Schedule IV of the Controlled Substances Act, it said. The final rule confirms an interim regulation issued in June that subjected brexanolone to new registration, labeling, recordkeeping, and import and export requirements.
The Treasury’s Office of Foreign Assets Control sanctioned four international petrochemical and petroleum companies that have transferred hundreds of millions of dollars worth of exports from the National Iranian Oil Company, Treasury said in a Jan. 23 press release. The NIOC is “instrumental” in Iran’s petroleum industry and helps finance Iran’s Islamic Revolutionary Guard Corps-Qods Force, the agency said. OFAC sanctioned Hong Kong-based broker Triliance Petrochemical Co., Hong Kong-based Sage Energy HK, Shanghai-based Peakview Industry Co. and Dubai-based Beneathco DMCC.
The Directorate of Defense Trade Controls issued a Jan. 23 guidance on the final rules for the transfer of gun export controls from the State Department to the Commerce Department, including a clarification on license submissions during the transition period. The guidance also clarifies how the rules and transition period affect technical assistance agreements, manufacturing license agreements, reporting requirements, commodity jurisdiction determinations and regulatory oversight responsibilities. The rules -- which were published Jan. 23 and transfer export control authority from the State Department to Commerce for a range of firearms, ammunition and other defense items -- will take effect March 9 (see 2001170030).