Notable international barriers to U.S. exports include Chinese food restrictions and inconsistent standardization laws, Brazil’s strict telecommunications requirements, Thailand’s discriminatory customs procedures and Europe’s value-added tax system, trade groups said in comments to the Office of the U.S. Trade Representative. The comments, due Oct. 31, were in response to USTR’s request for input for its upcoming National Trade Estimate Report on Foreign Trade Barriers.
A former top Commerce and trade official said the U.S.’s recent efforts to reform export controls and foreign investment screening are some of the most consequential developments the trade industry has seen in years. “The passage of [the Export Control Reform Act] and [the Foreign Investment Risk Review Modernization Act] together represents one of the biggest changes in trade compliance probably in at least a generation,” said Chris Padilla, former undersecretary for international trade and former assistant U.S. trade representative.
While small businesses face several common export obstacles -- including foreign regulations and complex customs procedures -- there is “tremendous opportunity” for export growth, according to a study released Oct. 30 by the U.S. Chamber of Commerce and Google.
Four Republican members of the House Financial Services Committee praised the Treasury Department’s proposed regulations for the Foreign Investment Risk Review Modernization Act but also criticized several key areas, according to comments released Oct. 29. The comments were signed by Reps. Patrick McHenry, R-N.C., Andy Barr, R-Ky., French Hill, R-Ark., and Steve Stivers, R-Ohio.
Export Compliance Daily is providing readers with some of the top stories for Oct. 21-25 in case they were missed.
The Commerce Department plans to release proposed export controls on emerging technologies within the “next few weeks” and an advance notice of proposed rulemaking on foundational technologies before the end of the year, a top Commerce official said. Matt Borman, the Commerce deputy assistant secretary for export administration, suggested Commerce has been eager to release both controls to ease concerns from U.S. trade groups and companies, which have warned the agency against overly broad, unilateral controls.
President Donald Trump said the U.S. is “ahead of schedule” in signing the first phase of a U.S.-China trade deal.
The United Kingdom will not leave the European Union on Oct. 31, after the EU and the U.K. agreed to postpone Brexit day to Jan. 31, 2020. European Council President Donald Tusk on Oct. 28 announced the Brexit “flextension,” which allows the U.K. to leave earlier if its Parliament approves a recently renegotiated transition deal. U.K. Prime Minister Boris Johnson accepted the extension later that same day, as required by a law passed by Parliament in September (see 1909090056), a BBC report said.
The Treasury Department announced a mechanism to help companies ensure their humanitarian exports to Iran will not be diverted to the government and other sanctioned Iranian entities, Treasury said in an Oct. 25 press release. The mechanism will require participating foreign governments and financial institutions to “conduct enhanced due diligence” -- including the reporting of “a substantial and unprecedented amount of information” -- on a monthly basis. Treasury’s Office of Foreign Assets Control also issued a guidance outlining the requirements.
A former top U.S. trade official and a New Zealand ambassador were optimistic the World Trade Organization can work through issues over its dispute settlement body but warned about damaging consequences for world trade if it doesn’t.