International Trade Law News

In a speech presented this evening to the Washington International Trade Association, Commerce Secretary Gary Locke said that "undertaking a review of export controls" is one of his top five priorities and that he has already instructed the Bureau of Industry and Security to initiate a review of the entire U.S. export control system.

Below is the export controls portion of Secretary Locke's speech. The full text of the speech, including the list of his other four priorities, can be found here.

Yet another area where red tape is challenging American businesses, and American security, is our export control regime.

Earlier this year, former National Security Adviser Brent Scowcroft, chaired a distinguish panel* to look into this issue, and he flatly declared:

“The national security controls on science and technology are broken.”

The panel concluded that our Cold War era export control system has constrained both U.S. commercial and military capabilities from expanding into new fields and from applying new scientific developments.

Our export control system must adapt to America's changing security needs without inhibiting the competitiveness of U.S. companies and institutions. That competitiveness is critical to our economic and national security.

Commerce has already begun to implement programs that will reduce the export licensing burden on U.S. companies. For example, earlier this year, I announced the first Validated End User in India. The VEU program was designed to facilitate high technology trade in India and China by enabling certain items to be transferred without an individual export licenses. But much more needs to be done.

I have instructed Commerce’s Bureau of Industry and Security to initiate a review of the entire export control system. The review will focus on improving the system by targeting our controls at those state and non-state actors who would seek to do us harm, while ensuring that the traditional control lists keep pace with technological developments.

*The panel referred to produced the National Academies' January 2009 report on export controls entitled Beyond 'Fortress America: National Security Controls on Science and Technology in a Globalized World.

Labels: BIS, Commerce Department, Export Controls

The third time was the charm. The United States Senate last night confirmed Gary Locke as the nation’s 36th Commerce Secretary by unanimous consent.

Locke was elected Washington State’s 21st governor in 1996, making him the first Chinese American governor in U.S. history and the first Asian American governor on the mainland. In 2000, Locke was re-elected to a second term as governor.

We expect to see nominations of several key senior Commerce Department officials in the coming weeks, including Under Secretary for Industry and Security and Under Secretary for International Trade.

Labels: Commerce Department

The Secretary of Commerce announced in today's Federal Register the establishment of the Civil Nuclear Trade Advisory Committee (CINTAC) and a call for nominations to serve on the CINTAC.

The CINTAC's is intended to advise the Secretary of Commerce on the development and administration of programs to expand U.S. exports of civil nuclear goods and services in accordance with applicable U.S. regulations. The Commerce Department will use the information in its role as member of the Civil Nuclear Trade Working Group of the Trade Promotion Coordinating Committee (TPCC). Established by Congress in 1992, the TPCC is an inter-agency group that is intended to coordinate U.S. export promotion activities and to develop a strategic plan. The TPCC publishes the annual National Export Strategy.

The CINTAC will advise the Secretary of Commerce on the following matters:

1. Trade policy development and negotiations relating to U.S. civil nuclear exports;
2. The effect of U.S. and foreign government policies, regulations, programs and practices on the export of U.S. civil nuclear goods and services;
3. The competitiveness of U.S. industry and its ability to respond to international opportunities for civil nuclear products and services, including specific exporting problems, and U.S. Government and public/private actions to assist civil nuclear companies in expanding their exports;
4. Priority civil nuclear products and services markets with high immediate returns for U.S. exports, as well as emerging markets with a longer-term potential for U.S. exports;
5. Strategies to increase private sector awareness and effective use of U.S. Government export promotion programs, and to make U.S. Government programs more efficiently designed and coordinated;
6. The development of complementary industry and trade association export promotion programs, and greater or more effective resource allocation for export promotion in the private sector; and
7. The development of U.S. Government programs to encourage producers of civil nuclear products and services to enter new foreign markets, in connection with which CINTAC may advise on how to gather, disseminate, and promote awareness of information on civil nuclear exports and related trade issues.
   

The CINTAC, which will be comprised of no more than 20 members, will include representatives from U.S. exporters of civil nuclear products and services, U.S. trade associations and U.S. private sector organizations involved in the promotion of exports of civil nuclear products and services.

Information on how to submit an application to serve on the CINTAC is contained in the Federal Register notice.

Labels: Commerce Department

As part of the Bush Administration's efforts to convince Congress to pass the U.S.-Colombia Trade Promotion Agreement, the Commerce Department today released the “Colombia Tariff Ticker” which tracks the dollar value of tariffs since the signing of the U.S.-Colombia Trade Promotion Agreement 520 days ago. According to Commerce, the tariffs paid by U.S. exporters to Colombia shown on the Colombia Tariff Ticker are an estimate based on data from the World Trade Atlas and Colombian tariff schedules.

Colombia Tariff Ticker
In launching the Colombia Tariff Ticker, the Commerce Department said that the U.S.-Colombia Trade Promotion Agreement "would eliminate 80 percent of these tariff payments on consumer and industrial goods immediately, and 100 percent within ten years." Commerce also noted that American exports face an estimated $1.9 million on tariffs each day that passes without two-way free trade with Colombia.

Labels: Colombia, Commerce Department

The Senate Finance Committee will hold a hearing to consider the nomination of Christopher A. Padilla to be Under Secretary of Commerce for International Trade on Thursday, December 13 in room 215 of the Dirksen Senate Office Building. The time of the hearing has not yet been finalized.

Labels: Commerce Department

Secretary of Commerce Carlos Gutierrez last week released the Administration's 2007 National Export Strategy. The 2007 National Export Strategy, which is intended to raise awareness in the American business community about the advantages of exporting examines, examines how the combination of declining trade barriers and advancing technologies has made exporting easier than ever. The entire 2007 National Export Strategy in PDF format can be found here.

Labels: Commerce Department