Dumping

U.S.:

The International Trade Commission found that surging tire imports from China were causing or threatening to cause market disruption to U.S. industry. Certain Passenger Vehicle and Light Truck Tires from China. (ITC) (26 ITR 859; 6/25/09)

Export Controls

U.S.:

GE India will be the first company allowed to participate in the Validated End User (VEU) program for India allowing license-free exports of sensitive technology from the U.S. based upon clearance and pre-qualification by the U.S. Commerce Department that prescreens each of the transferring entities and commodities within the program. (26 ITR 852; 6/25/09)

The Bureau of Industry and Security (BIS) has relaxed controls on exports of select thermal imaging equipment which has "dual use" for commercial and military applications including firefighting, predictive/preventive maintenance, medical, perimeter monitoring and targeting uses and has imposed controls on re-exports of foreign-made military products incorporating U.S. commercial "uncool" thermal imaging cameras. (Fed. Reg., 74 Fed. Reg. 23,941 (May 22, 2009); (26 ITR 735; 6/4/09)

Fiscal Incentives

India:

 Developers and units located in Special Economic Zones no longer need to pay taxes and claim a refund for certain service tax exemptions. (26 ITR 788; 6/11/09)

Government Procurement

U.S.:

The U.S. Office of Management and Budget (OMB) issued interim final rules on certain requirements for financial assistance in the American Reinvestment and Recovery Act (ARRA) including the Buy American provision. (74 Fed. Reg. 18,449; 26 ITR 810; 6/18/09)

Canada:

Canadian officials led by Deputy Head of Mission and accompanied by 13 Canadian Consul Generals briefed members of Congress and staff in Washington, D.C. on how the Buy America restrictions in ARRA is costing jobs in both countries and that new provisions and bills such as the Water Quality Investment Act (HR 1262) and the 21st Century Green High-Performing Public School Facilities Act (HR 2187) hold the potential for serious job losses in both jurisdictions. (26 ITR 770; 6/11/09)

Intellectual Property

U.S.:

The Congressional International Anti-Piracy Caucus identified China, Russia, Canada, Spain and Mexico as jurisdictions where copyright infringement has reached rampant levels. (26 ITR 775; 6/11/09)

Taxation

India:

The government announced its 2009-2010 budget which includes a proposal to introduce a service tax of 10% on legal services rendered in a "transactional practice" but excludes attorneys involved in litigation. (INTINDIA@MAIL.ABANET.ORG, 7/6/09) 

Agricultural

U.S.:

The Agricultural Rural Development, Food and Drug Administration Appropriations Bill for fiscal year 2010 will improve the safety of domestic and imported food and medical products allowing for the oversight of country of origin labeling for fresh foods and vegetables, meats and other products. (26 ITR 844; 6/25/09)

H.R. 2749 passed the House Energy and Commerce Committee allowing the establishment of a safe and secure food importation program.

Environment

U.S.:

HR 2751 "Cash for Clunkers" bill would provide vouchers of $4,500 for purchasing a vehicle with fuel economy rating at least 10 miles per gallon more efficient than the trade-in vehicle being replaced; $3,500 vouchers would be available for purchase of a vehicle at least 4 miles per gallon more efficient than the trade-in vehicle. (26 ITR 777; 6/11/09)

The Department of Justice and the Environmental Protection Agency sued three Mississippi companies that imported and sold more than 78,000 Chinese made off-road engines that did not comply with the Clean Air Act omissions standards. (U.S. v. Powertrain Inc., DDC No. 1:09-993; 5/28/09; 26 ITR 758; 6/4/09)

Export Controls

U.S.:

H.R. 2410 would ease controls on exports of commercial satellites and related equipment and technology by shifting policy from the State Department to the Executive Branch. (26 ITR 807; 6/18/09)

S. 1196 (Small Business International Trade Enhancements Act of 2009) creates a new office of International Trade directly accountable to the Small Business Administration to maintain at least 22 trade finance specialists for counseling small business exporters and increase the SBA's trade and loan program. (26 ITR 812; 6/18/09) 

Safeguards

India:

India has notified the World Trade Organization (WTO) of decisions to impose provisional safeguard measures by higher tariffs on a range of imports including hot-rolled steel coils, sheets and strips; acrylic fibers; and coated paper and paperboard. (25 ITR 819; 6/18/09)

Foreign Investment

South Korea:

The Ministry of Knowledge Economy that oversees promotion of Foreign Direct Investment (FDI) announced a plan to (i) reform the current system of offering cash grants and tax breaks to foreign companies to create a single pool with an aggregate cap; and (ii) reduce the current minimum investment requirement of $10,000,000 in 2012 to help attract more investment from companies bringing technology and jobs. (ITR 789; 6/11/09)

U.N.:

The United Nations Conference on Trade and Development (UNCTAD) reported global Foreign Direct Investment (FDI) declined by 14.5% in 2008 although there was an increase in the United States by almost 38% explained by foreign parent companies transferring capital to their U.S. affiliates in financial distress and equity and debt advances made for bargain price acquisitions. A more dramatic decline in FDI is anticipated for 2009 both on a worldwide basis as well as in the U.S. (26 ITR 739; 640)

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