International Trade Law News
December 12, 2003
President Bush Signs Syria Accountability Act
Late Friday afternoon President Bush signed into law H.R. 1828, the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003. While the President did not specifically indicate whether he would invoke the waiver authority provided for in the legislation, the statement issued in connection with the signing of the bill appears to indicate that he is leaning in that direction. Specifically, the President noted that "a law cannot burden or infringe the President's exercise of a core constitutional power by attaching conditions precedent to the use of that power" and that the "executive branch shall construe and implement section 5 in a manner consistent with the President's constitutional authority to conduct the Nation's foreign affairs and as Commander in Chief. . . "
These are strong statements that are certainly going to generate a strong negative response from member of Congress. Several members of Congress indicated after the bill was passed that any waiver of the Syrian sanctions by the President should be invoked sparingly and would "be given the strictest scrutiny by Congress."
USA*Engage Urges President to Waive Sanctions Under the Syria Accountability Act
USA*Engage and the National Foreign Trade Council recently sent a letter to President Bush urging him to waive the sanctions against Syria contained in the Syria Accountability Act (H.R. 1828) recently passed by Congress, but has not yet been signed by the President.
The letter states that imposing any of the sanctions set forth in the legislation would have a severely negative impact on hundreds of U.S. businesses currently operating in Syria. Moreover, the letter noted that unilateral sanctions have an "established track record of failing to achieve their desired foreign policy objectives and are, in fact, counterproductive to U.S. commercial, diplomatic, and national security interests."
December 11, 2003
[Export Controls] Directorate of Defense Trade Controls to Hold Seminar on Electronic Filing of License Applications and TAAs
The Directorate of Defense Trade Controls (DDTC) will host two live web seminars to introduce users to the D-TRADE licensing system, which will allow users to file electronically form DSP-5 and Technical Assistance Agreements. The program will also provide an overview on digital certificates and user management. There is no cost for attendance but interested parties must be currently registered with DDTC. Click here for registration and course options.
December 10, 2003
[Antidumping] ITC Makes Preliminary Affirmative Injury Determination on Processed Hazelnuts From Turkey
The United States International Trade Commission (ITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of certain processed hazelnuts from Turkey that are allegedly sold in the United States at less than fair value. All six Commissioners voted in the affirmative. As a result of the Commission's affirmative determination, the U.S. Department of Commerce will continue to conduct its antidumping investigation of imports of certain processed hazelnuts from Turkey, with its preliminary determination due on or about March 29, 2004.
[Export Controls] BIS Publishes Wassenaar Revisions to Commerce Control List
The Bureau of Industry and Security (BIS) today published a final rule revising certain items on the Commerce Control list (CCL) to confirm to revisions to the Wassenaar List made late last year. The final rule modifies items controlled for national security purposes in Categories 1, 2, 3, 4, 5 Part I (telecommunications), 5 Part II (information security), 6, and 7 of the CCL.
December 9, 2003
[Trade] Highlights of FY 2004 Omnibus Appropriations Bill
The following are some of the trade-related highlights of the FY2004 omnibus appropriations bill that passed the House Monday and awaits final Senate action. Efforts by the Senate to pass the bill yesterday were unsuccessful and it appears that the bill may not be reconsidered by the Senate until early next year.
• Cuba - As expected, the bill does not include the language in the original House and Senate bills that would have ended the ban on travel to Cuba by US citizens. The bill provides the administration's request of $7 million to promote a peaceful transition to democracy in Cuba.
• International Trade Administration (ITA), Department of Commerce - The spending bill appropriates $395 million for the ITA — $27 million (7 percent) more than the current level, but equal to the request and the House level. The bill includes $500,000 for a comprehensive study of future domestic demand for steel and $3 million to establish an Office of China Compliance.
• Office of the US Trade Representative (USTR). The bill provides $42 million for the USTR — $7 million (21 percent) more than the current level.
[Cuba Trade] Washington Post Article Focuses on Crackdown on Cuba-Related Travel
Today's Washington Post has an article discussing the ramifications of the Bush Administration's recent effort to reduce the number of U.S. citizens who visit Cuba. The article reports that licenses for travel to Cuba have been reduced, and prosecution of accused lawbreakers has intensified. The article notes that the Treasury Department's Office of Foreign Assets Control (OFAC), which enforces sanctions against countries, terrorist networks and drug traffickers around the world, has assigned 21 of its 120 employees -- and $3.3 million of its $21.2 million budget -- to Cuba enforcement efforts in fiscal year 2003. The article also states that the Department of Homeland Security has begun training officers to look for U.S. citizens traveling illegally to Cuba through third countries, including Canada and Mexico.
[Imports] FDA Publishes Prior Notice Guidance Document on Food Imports
The FDA has published a Guidance Document on the FDA Prior Notice Regulations governing the importation of food products. This document is intended to explain the FDA's Prior Notice rules in simplified format and language.
Commerce Publishes Notice Continuing Steel Import Licensing Program
The Commerce Department today published a notice providing for the continuation of the Steel Import Licensing and Surge Monitoring program despite the termination of the safeguard measures by the President.
December 8, 2003
Tentative Agreement Reached in Softwood Lumber Trade Dispute
The U.S. government and its domestic producers reached a tentative deal with the Government of Canada this weekend in the long-running dispute on softwood lumber imports from Canada. While the agreement is subject to approval by Canadian lumber interest, the current agreement provides that the antidumping and countervailing duty cases on softwood lumber from Canada will be suspended in exchange for the following:
*Canadian lumber would have a duty-free ceiling of 31.5%, which is slightly below Canada's current share of the U.S. market. If Canadian sales to the U.S. exceed that proportion of the market, a tariff of US$200 per thousand board feet of lumber would be imposed.
*US$1.6 billion antidumping and countervailing duties collected in the past 18 months would be split between Canadian and U.S. producers, with Canadians getting 52 per cent.
*The agreement would run for three years. Once the three-year term is up, Canadian provinces that move towards a more free-market forest policy could increase their duty free share by five per cent in the fourth and fifth years, if their policies are approved by the U.S. Department of Commerce.
Sparks Fly in U.S. Furniture Industry Over Antidumping Petition on Bedroom Furniture From China
Last week two retail furniture chains announced that they would stop buying goods from American furniture makers who are supporting the antidumping petition on wooden bedroom furniture from China. American Furniture Warehouse Co. Inc., based in Englewood, Colo., which has nine stores across Colorado, and Columbus, Ohio-based Value City Furniture, which has 80 stores across the East Coast and Midwest, have indicated that they would no longer buy bedroom sets from companies supporting the antidumpoing petition against China. Wickes Furniture, a 40-store chain in the Midwest, has also recently stopped buying from a major U.S. furniture manufacturer.
These decisions will have a significant bottom-line impact on U.S. furniture manufacturers, such as Vaughan-Bassett Furniture Co., Hooker Furniture Corp. and La-Z-Boy Inc., all of which are supporting the antidumping petition.
