International Trade Law News
October 31, 2003
Strange Bedfellows
There is an interesting article written by Laura Rozen in The Nation discussing the possible Al Qaeda ties of a contracting firm being used by the U.S. Government in Iraq. The article also discusses how the U.S. Government makes its Specially Designated Global Terrorist designations.
Antidumping Petition Filed on Wooden Bedroom Furniture From China
Today the American Furniture Manufacturers Committee for Legal Trade filed an antidumping petition on Wooden Bedroom Furniture from China.
CIT Remands Negative Injury Determinations on Cold-Rolled Steel Products to ITC
In Bethlehem Steel, et al. v. United States, the U.S. Court of International Trade (CIT) recently remanded the ITC's 2000 final negative injury determination in antidumping and countervailing duty investigations involving cold-rolled steel products from Argentina, Brazil, China, Indonesia, Japan, Russia, Slovakia, South Africa, Taiwan, Thailand, Turkey, and Venezuela.
The Plaintiffs had challenged three aspects of the ITC’s investigation: (1) that the ITC improperly found that the captive production provision of 19 U.S.C. § 1677(7)(C)(iv) was inapplicable to the Final Determinations; (2) that the ITC improperly relied on information upon which the parties were not given an opportunity to comment; and (3) that the ITC’s findings concerning certain conditions of competition, and the volume and price effects of cold-rolled steel imports, were not supported by substantial evidence and otherwise in accordance with law.
The CIT found that the ITC’s interpretation of 19 U.S.C. § 1677(7)(C)(iv) was not in accordance with law and remanded the final decision to the ITC to define “internal transfers” consistent with the will of Congress. Additionally, the Court held that the ITC did not observe the proper procedure for applying facts otherwise available in its calculation of the overlap betweencaptively-produced downstream products and downstream products produced from merchant market sales. The Court remanded the Final Determinations and instructed the ITC to clarify how it complied with the statutory framework for applying facts otherwise available. If the ITC determines that it did not adhere to all of the statutory prerequisite conditions, then it must give the Plaintiffs an opportunity to remedy any deficiencies in their data. In addition, in light of the Court’s instruction to the ITC to reconsider its definition of “internal transfers,” the Court declined to rule on whether the Plaintiffs had an opportunity to comment on the perceived shift in methodology by the ITC. The CIT instructed the ITC to issue its findings on remand within 90 days.
USTR Requests Comments on Foreign Trade Barriers
The USTR has requested parties to submit comments on significant barriers to U.S. exports of goods, services and overseas direct investment for inclusion in the annual national trade estimate report on foreign trade barriers. Public comments are due not later than Friday, December 12, 2003.
USA*Engage Urges Congress to Retain Cuba Travel Amendments in Appropriations Bill
USA*Engage has issued a press release urging Congress to retain amendments in the Treasury-transportation Appropriations bill that would suspend enforcement of current travel restrictions on Cuba. Last week, the Senate voted overwhelmingly in favor of the Craig/Dorgan amendment to suspend enforcement of current restrictions on travel to Cuba. The House passed an identical measure in September.
October 30, 2003
USDA Publishes Country of Origin Labeling Regulations
Today, the U.S. Department of Agriculture published in the Federal Register the proposed regulations implementing the mandatory country of origin labeling (COOL) program on meat, seafood, produce and peanuts. See the article posted on October 28th (below) for more information on this controversial program.
Is the U.S. Steel Market Showing Signs of Life?
Preliminary steel import data released by the U.S. Department of Commerce confirm that U.S. steel imports increased from August to September 2003, although they remain at modest levels and are down significantly for the year. Total steel imports in September 2003 were 1.9 million tons compared to 1.7 million tons in August 2003, an 8.6% increase. However, September 2003 imports were down by more than 41% compared to September 2002. Year to date import data confirmed a 26.9% decrease from 2002 (24.0 million tons in 2002 to 17.5 million tons in 2003). While a weak economy has decreased the need for imported steel, much of the decrease is a result of the section 201 tariffs and tariff-rate quotas imposed by the U.S. on many steel products in March 2002.
October 29, 2003
New Chief Judge of U.S. Court of International Trade
The U.S. Court of International Trade has announced that the incumbent chief judge, Gregory W. Carman, will be stepping down as chief judge on October 31, 2003. The new chief judge, Jane A. Restani, will assume her duties on November 1, 2003.
New Initiatives on Cuba Do Not Affect Humanitarian Sales and Exports
Despite the circulation of information to the contrary, the new Cuba initiatives announced by the President on October 10, 2003 do not, in fact, end the ability of U.S. companies to export agricultural or medical products to Cuba.
The Cuban Assets Control Regulations enforced by the Treasury Department's Office of Foreign Assets Control (OFAC) specifically permit travel to Cuba to engage in the marketing and sales negotiation of agricultural and other humanitarian products, such as medicines and medical devices. In addition, the Department of Commerce's Bureau of Industry and Security (BIS), the agency responsible for overseeing agricultural and medical exports to Cuba, continues to process notifications submitted by companies for the export of agricultural products to Cuba (these are known as License Exception AGR notifications).
While the President's October 10, 2003 announcement called for greater enforcement of travel restrictions to ensure that permitted travel for Americans is not abused and used as cover for illegal business travel, legitimate travel to market and negotiate humanitarian products is still licensable.
WTO Intends to Abide by Doha Round Deadline
World Trade Organization (WTO) Director-General Supachai Panitchpakdi today said that January 2005 remained the deadline for completing the Doha Round of trade talks, despite the breakdown of negotiations in Cancun, Mexico last month.
The Doha Round aims to remove trade barriers in a range of sectors from agriculture to services. But the talks in Cancun broke down over demands for developed countries to cut financial support for farmers and over developing nations' opposition to a set of new rules which looked to expand WTO regulation into investment and competition policy.
Support Grows for Antidumping Petition on Imported Shrimp
Support is growing for the Southern Shrimp Alliance's efforts to file an antidumping petition against imported shrimp after the Louisiana Shrimp association recently announced that it is likely to the antidumping effort. The countries targeted by the petitions could include at least China, India, Thailand, Ecuador, Vietnam, Brazil and Mexico, which are the major shrimp exporters to the United States.
Nations Aim to Prevent Illegal Exports to North Korea
Japan and seven Pacific Rim countries, including China, South Korea and the United States, recently reached an agreement to take additional measures to prevent North Korea from obtaining illegal products with military potential via indirect exports. The meeting, organized by Japan, was the first to focus exclusively on export controls in Asia.
The agreement reached by the eight countries will establish a system whereby the countries can inform each other about suspicious trade practices. The participants agreed to draw up a basic principle on export controls in the region when they gather again in Tokyo in early 2004.
October 28, 2003
House Committee Advances Bill for Repealing Export Tax Breaks
Today the House Ways and Means Committee voted 24-5 to approve a bill repealing existing tax breaks for U.S. exporters that were held to be in violation of World Trade Organization (WTO) agreements. The WTO has previously held that the U.S. Foreign Sales Corporation (FSC) program and the successor Extraterritorial Income Act (ETI) violated rules against export subsidies.
The European Union (EU), which brought both WTO challenges, has authority to impose trade sanctions of $4 billion a year against U.S. imports in retaliation unless the United States repeals the FSC/ETI tax breaks. EU officials have warned they could begin imposing some sanctions as soon as January.
Many obstacles remain for passage of this legislation as Congress' 2003 session moves closer to adjourning for the year.
USDA Criticizes Country of Origin Labeling Regulation
The U.S. Department of Agriculture stated that the mandatory country of origin labeling (COOL) program on meat, seafood, produce and peanuts could cost American foodmakers up to $3.9 billion in its first year. The USDA found virtually no benefits from possible consumer demand for labeling. The full text of the proposed rule will be published in the Oct. 30 Federal Register. The 2002 Farm Bill requires country of origin labeling for all covered commodities sold at retail beginning September 30, 2004.
OFAC Issues Interim Final Rule on Iraq Sanctions Regulations
The Office of Foreign Assets Control (OFAC) published today an interim final rule amending the Iraqi Sanctions Regulations to reflect the substantial lifting of economic sanctions on Iraq that occurred in May 2003. OFAC has requested parties to submit comments on the impact of the regulations by December 29, 2003.
ITC Initiates Antidumping Investigation on Processed Hazelnuts From Turkey
Today the U.S. International Trade Commission (ITC) announced in the Federal Register the institution of an antidumping investigation on certain processed hazelnuts from Turkey. This investigation is being instituted in response to a petition filed on October 21, 2003, by Westnut LLC, Dundee, OR; Northwest Hazelnut Co., Hubbard, OR; Hazelnut Growers of Oregon, Cornelius, OR; Willamette Filbert Growers, Newberg, OR; Evergreen Orchards, McMinnville, OR; and Evonuk Orchards, Eugene, OR.
October 27, 2003
State Department Issues ITAR Amendment Requiring Mandatory Filing Via AES
In today's Federal Register the State Department's Directorate of Defense Trade Controls (DDTC) issued a final rule confirming that the Census Bureau's Automated Export System (AES) will be used to collect data on exports of U.S. Munitions List (USML)
articles pursuant to the Arms Export Control Act (AECA).
