August 05, 2008
International Law Bulletin - Vol. 14, No. 7
INTERNATIONAL BUSINESS AND TRADE
Automotive
WTO:
- The World Trade Organization (WTO) dispute settlement panel upheld the U.S. complaint that treatment of imported auto parts by China runs counter to its commitments in that measures adopted in 2004-2005 resulted in the imposition of duties on imported auto parts equivalent to tariffs imposed on complete vehicles where the imported parts exceeded a fixed percentage of the final vehicle content or price (25 ITR 1100; 7/24/08)
Textiles
China:
- China is losing its competitive edge in global textiles and clothing markets with a decline in its exports ranging from 10% to 17% as a result of competition from Viet Nam, Bangladesh, and Pakistan (25 ITR 1101; 7/24/08)
U.S.:
- The Committee for the Implementation of Textile Agreements (CITA) reduced a 2008 Textile Tariff Preference Level (TPL) for Nicaragua (25 ITR 993; 7/3/08)
Dumping
U.S.:
- The International Trade Commission (ITC) determined that U.S. industry is materially injured by imports of light-walled rectangular pipe and tube from China which the Commerce Department had determined was subsidized and dumped but no retroactive duties were determined for reason of a lack of “critical circumstances” (Light-walled Rectangular Pipe and Tube from China, Korea, and Mexico, (ITC)(25 ITR 1111; 7/24/08)
- The ITC found that U.S. industry is materially injured by imports of laminated rope and sacks from China that the Commerce Department had determined was subsidized in the U.S. at less than fair value (Laminated Woven Sacks from China, ITC; (25 ITR 1112; 7/24/08)
- The ITC found U.S. industry is being materially injured by imports of certain steel nails from China which had already been determined to be dumped according to the Commerce Department investigation (Certain Steel Nails from China, ITC)(25 ITR 1072; 7/17/08)
- The Commerce Department announced a final affirmative determination that China is dumping and subsidizing Off-The-Road tire (OTR) exports to the U.S. (Off-The-Road Tires from China, ITA)(25 ITR 1034; 7/10/08)
Information Technology
EU:
- The European Union (EU) issued guidance for the protection of personal data in the form of Binding Corporate Rules (BCR) for use by companies that operate in multiple EU nations which need to move personal data across borders in compliance with the EU data protection directive (95/46/EC) (25 ITR 1062; 7/17/08)
Customs Enforcement
U.S.:
- Over a thousand cargo containers of Chinese apparel that were illegally transshipped were charged to quota levels granted China in 2006 and 2007 since they were incorrectly declared as originating in 11 different countries (29 ITR 1065; 7/17/08)
Chemicals
EU:
- The European Chemicals Agency (ECHA) issued details about their procedures for the appeals board in making decisions respecting registration, evaluation and authorization of chemicals regulation (25 ITR 988; 7/3/08)
INTERNATIONAL AGREEMENTS AND INVESTMENTS
Foreign Investments
Russia:
- A new government body designed to control foreign investment in strategic sectors prohibits companies operating in the specified sectors from placing more than 25% of shares outside Russia except Russian companies doing geological exploration and extraction resources as strategic deposits are not allowed to place more than 5% of their shares overseas (25 ITR 1063; 7/17/08)
U.S.:
- FDI outflows rose from $ 1.2 trillion in 2006 to $ 1.82 trillion in 2007 but FDI inflows are projected to decline in 2008 notwithstanding the fall of currencies such as the U.S. dollar (25 ITR 1019; 7/10/08)
Foreign Direct Investment
U.S.:
- Foreign Direct Investment (FDI) to acquire or establish U.S. businesses reached $ 275.8 billion in 2007, an increase of 67% from $ 165.6 billion in 2006 incrementally increasing jobs to 487,600 in 2007, up from 223,400 workers for the prior year coinciding with the decline in the value of the U.S. dollar against major foreign currencies increasing the purchasing power of foreign investors. The largest increases were within the manufacturing sector and were directed at chemicals, pharmaceuticals, medicines, transportation equipment, aerospace products and parts, primary metals and machinery. European investors increased their outlays to $146.5 billion up 37% and Canada accounted for the next largest share at 15% which was an increase of $ 41.1 billion which was more than triple the investment since 2006. Middle East investment was principally from Saudi Arabia and the United Arab Emirates and totaled $ 27.4 billion which was more than double FDI in the previous year (25 ITR 984; 7/3/08)
LEGISLATIVE & LEGAL DEVELOPMENTS
Trade Policy
U.S.:
- HR 6530 is a trade enforcement measure to eliminate foreign barriers to U.S. goods and services exports, combat counterfeiting and piracy, restore some rights established under U.S. trade remedy laws and address illegal trade practices (25 ITR 1084; 7/24/08)
Textiles
U.S.:
- HR 6560 put in place a "2 for 1" textile and apparel allowance program for the Dominican Republic allowing it as a CAFTA-DR party to the “yarn-forward” rule of origin to allow producers in the Dominican Republic to get a credit equivalent to one Square Meter Equivalent (SME) when they buy a certain quantity of qualifying U.S. fabric of 2 square meter SMEs (25 ITR 1107; 7/24/08)
PROTECTION AGAINST TERRORISM
Customs
U.S.:
- The 10+ 2 cargo data initiative has been criticized by 40 trade associations asking the Bureau of Customs and Border Protection (CBP) to launch a pilot program before issuing a final rule warning that the present rule as drafted will significantly raise the cost of doing business for large and small companies depending upon imported parts and components for fabrication and manufacture in the production of final products within the U.S. (25 ITR 1097; 7/24/08)
Jordan:
- A mutual recognition agreement was signed with the U.S. recognizing the compatibility of the security programs of both countries for expediting and clearing cargo from trusted shippers under the bureau of Customs and Border Protection (CBP) program C-TPAT (25 ITR 999; 7/3/08)
Sanctions
U.S.:
- The Senate Banking Committee passed the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2008 expanding trade and economic sanctions against Iran authorizing divestment from companies that do business with Iran’s key oil sector and cracks down on the illegal diversion of sensitive U.S. technologies to Iran (25 ITR 1113; 7/24/08)
Sources: IR - Interpreter Releases, Federal Publications, Inc.; Financial Times (FT); ITR - International Trade Reporter, Bureau of National Affairs, Inc.; IB-Bender’s Immigration Bulletin; ILT - Immigration Law Today, American Immigration Lawyers Association Monthly Journal; IL - International Lawyer, SMU School of Law; FT- Financial Times; TE - The Economist Magazine; GATM - German American Trade Magazine published by the German American Chamber of Commerce; WSJ - Wall Street Journal; ILN/ABA-International Law News, American Bar Association; TMIJ-Tax Management International Journal, Bureau of National Affairs, Inc.; AILA - American Immigration Lawyer’s Association
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.