The U.S.-EU Trade and Technology Council will host a new “outreach event” next month to speak with industry about dual-use export control issues. The July 19 virtual event will help the TTC’s Export Control Working Group address the “streamlining of possible duplicative actions” faced by exporters who are required to obtain licenses in both the U.S. and EU. Other topics to be discussed include “the similarities and differences between EU General Export Authorisations and US License Exceptions” and information sharing between the exporter and the consignee. The outreach event will “feed into EU-US work” to help reduce the “administrative burden for both economic operators and government authorities.” Participants must register before 6 p.m. June 30.
The EU levied its 11th sanctions package against Russia June 23, imposing a host of new export restrictions, individual designations and "new tools to counter circumvention and information warfare," the European Council announced. The new designations target 71 people and 33 entities involved in military activities, political decision-making, the spread of disinformation, the forced adoption of Ukrainian children to Russia and Russian information technology companies offering technology to Russian intelligence agencies.
Many companies are grappling with how best to comply with the Commerce Department’s foreign direct product rule, “one of the key areas” still “unaddressed” by the agency’s regulations and guidance, said Kim Strosnider, a trade lawyer with Covington. She said Commerce’s compliance expectations for the FDP rule are rising despite due diligence challenges faced by industry, pointing to the agency’s record $300 million penalty against Seagate Technology in April (see 2305080029 and 2304190071).
China’s recent restrictions on Micron products are having broader than expected consequences for U.S. exporters, a trade industry conference heard last week, and may portend how future Chinese retaliatory actions will affect U.S. companies.
Ajay Kuntamukkala, partner at Hogan Lovells, has been named office managing partner in the firm's Washington, D.C., office, effective July 1, the firm announced. Succeeding Michele Farquhar in D.C., Kuntamukkala currently sits as a co-leader of the International Trade & Investment practice. His practice centers on "economic sanctions, export controls, and compliance with government licenses and authorizations," among other things, the firm said.
Sen. Marco Rubio, R-Fla., speaking at an American Compass event this week on Capitol Hill, said he's worried that the pervasiveness of U.S. sanctions could move Brazil, Argentina, Saudi Arabia, India and others away from using the dollar. "And I've been a supporter of sanctions," he said. "But at some point, you sanction enough people, and you create this entire marketplace that's sanctioned," and that creates an incentive to try to find a way around the sanctions by buying goods in China's yuan.
The Biden administration should better use sanctions to convince the Mexican government to take stronger actions against drug cartels, Republicans on the Senate Foreign Relations Committee wrote in a June 21 letter to the Treasury and State departments. The lawmakers, led by Sen. Jim Risch of Idaho, the committee’s top Republican, said Mexico has turned a “blind eye” toward its cartels, and the Biden administration should sanction state and local Mexican officials “who directly support or enable" them.
A bipartisan bill introduced in the Senate this week could allow the U.S. to better target sanctions evasion by rewarding information leading to the arrest or conviction of evaders. The Sanctions Evasion Whistleblower Rewards Act, introduced in part by Sen. Jim Risch of Idaho, the top Republican on the Senate Foreign Relations Committee, would expand the State Department’s Rewards for Justice program to offer rewards for “information about the identity or location of individuals and entities that defy sanctions imposed” by the U.S. or the U.N., the lawmakers said.
House Select Committee on China Chair Mike Gallagher, R-Wis., is asking the Commerce Department for export licensing information involving Chinese companies with ties to Beijing’s expanding “signals intelligence” presence in Cuba. In a June 20 letter to Commerce and the Office of the Director of National Intelligence, Gallagher said China’s reported effort to expand its military and spy facilities in Cuba (see 2306130062) is likely being “aided” by Chinese telecommunications companies, including those that have violated U.S. export controls to acquire American intellectual property.
Canada this week announced a new set of sanctions against Iran, designating seven Iranian judges for their role in “gross and systematic human rights violations.” Canada said the judges are “notorious” for issuing death sentences and prison terms following sham trials based on evidence “gathered under torture.” The designations help align Canada’s Iran sanctions regime with those administered by the U.S., the EU and the U.K., the country said.