Agriculture

U.S.: 

The U.S. Department of Agriculture (USDA) predicts a trade surplus of over $32 billion for FY 2012 and an increase in U.S. imports of 11%. (28 ITR; 9/15/11). 

Customs

South Korea: 

An annual tax reform program was announced by the Ministry of Strategy and Finance (MOSF) to reconcile national tax and customs authorities’ decisions effective January 2012 (28 ITR 1507; 9/15/11). 

Dumping

U.S.: 

The International Trade Commission (ITC) advanced the anti-dumping investigation of large power transformers from Korea after the agency found a reasonable indication that U.S. industry is being materially injured by imports of large power transformers allegedly sold in the U.S. at less than fair value (Large Power Transformers from Korea, ITA (28 ITR 1459; 9/8/11). 

Environment

U.S.: 

Net exports of solar energy products totaled $1.9 billion in 2010 representing an increase of over 73% for the prior year (28 ITR 1488; 9/15/11). 

WTO:

The World Trade Organization (WTO) circulated a ruling on a confidential basis in favor of the claim of Mexico that the voluntary labeling requirements of the U.S. were more trade restrictive than necessary to achieve the goal of protecting dolphins from being killed in tuna nets (28 ITR 1548; 9/22/11). 

Export Finance

U.N.: 

The Organization for Economic Cooperation and Development (OECD) updated its agreement in support of export credits with new rules on setting minimum risk premiums for export credit assistance (28 ITR 1486; 9/15/11). 

Immigration

U.S.: 

The USCIS announced expansion of its premium processing service to immigrant petitions (green cards) for multi-national executives and to allow expedited processing of petitions absent evidentiary deficiencies, fraud or national security concerns (88 IR 1868; 8/8/11).

Anti-Trust

U.S.: 

The U.S. District Court (Eastern District of New York) found that Chinese exporters of vitamin C cannot escape liability for alleged involvement in a conspiracy to fix prices and restrict output under the Foreign Compulsion Act of State or International Comity Doctrines concluding that the defendant’s theory that the Chinese Government had required the reporter’s actions was not a viable defense (28 ITR 1512; 9/15/11). 

Arbitration

ICC:  

The International Chamber of Commerce (ICC) has amended its rules to take effect January 1, 2012 to modernize its provisions to support parties seeking arbitration for business solutions (28 ITR 1487; 9/15/11; www.iccwbo.org/ICCDRS Rules/).

Dumping

U.S.: 

The International Trade Commission (ITC) announced an investigation of products of LCD displays alleging violations of Section 337 in the importation and sale of devices that may infringe a patent asserted by the Industrial Technology Research Institute of Taiwan and ITRI International, Inc. of California to include respondents LG Corp. of South Korea; LG Electronics, Inc. of South Korea; and LG Electronics USA of New Jersey (28 ITR 1556; 9/22/11). 

Energy

China:

The National Development and Reform Commission (NRDC) set first feed-in-tariffs for solar power and technical standards for wind power as part of its effort to expand the use of renewable energy (28 ITR 1538; 9/22/11). 

Export Controls

U.S.: 

The Bureau of Industry and Security (BIS) requested comment on foreign policy-based controls required under Section 6 of the Export Administration Act pertaining to the Commence Control List, end users and end use based controls and embargos and other special controls under Parts 742, 744 and 746 (28 ITR 1482; 9/15/11). 

WTO:

The World Trade Organization (WTO) ruled in July that restrictions imposed by China in the form of export duties and other restrictions violate global trade rules, as well as specific commitments in the accession agreement of China where the restrictions affected bauxite, coke, fluorspar, magnesium, manganese, silicone carbide, silicone metal and zinc (28 ITR 1496; 9/15/11). 

Export Finance

U.S.: 

The legislation reauthorizing the U.S. Export-Import Bank has been reported out from the Senate Committee to extend the operating authority for the Bank through 2015 (28 ITR 1481; 9/15/11). 

Foreign Investment

U.S.: 

The Foreign Corrupt Practices Act (FCPA) is expected to receive more judicial interpretation under the case of U.S. v. Carson, in addressing the issue of who is a “foreign official” for purposes of determining whether there has been a FCPA violation (28 ITR 1480; 9/15/11). 

Government Procurement

U.S.: 

The Canadian government is requesting formal consultations with the United States under the 2010 Canada-U.S. Agreement on Government Procurement with regard to the new Buy-American Provisions in the American Jobs Act of 2011 (28 ITR 1544; 9/22/11). 

Immigration

U.S.: 

The U.S. Citizenship & Immigration Services (USCIS) released an interim policy memorandum dated July 7, 2011 changing the amount of time it offers to provide an applicant or petitioner to respond to a Request for Evidence (RFE) of a standard timeframe of 30 days for a Form I-539 Application to Extend/Change Non-immigrant Status and 84 days for all other types (88 IR 1675; 7/18/11).

South Carolina amended its immigration law to add provisions that all private employers who are required by federal law to complete and maintain federal employment eligibility verification forms or documents must register and participate in E-Verify program to verify work authorization of every new employee within three business days of employment (88 IR 1698; 7/18/11).

Louisiana signed two new employment bills relating to non-citizens requiring a private employer to attest it is registered and participating in the E-Verify program during the term of the contract for services to a public entity (88 IR 1773; 7/25/11).

 The U.S. District Court temporarily enjoined the Alabama Taxpayer and Citizen Protection Act (H.B. 56) on numerous grounds including federal preemption of the provisions of the state law and constitutional grounds (Hispanic Interest Coalition v. Bentley, Case No. 5:11-CV-2484-SLB; 28 IR 2070; 9/5/11).

An administrative law judge of the U.S. Department of Labor reversed the findings of the administrator of the Wage Hour Division finding that an employer’s failure to notify of the termination of H-1B worker left it liable for accrued wages from the date of actual termination of August 14, 2008 through the date of notice finally rendered to the agency on August 26, 2010 in the amount of $156,424.84 (Matter of Ganze & Co., OLAJ, Case No. 2011-LCA-00005, 6/30/11; 88 IR 1790; 8/1/11).

Intellectual Property

U.S.: 

The Ninth Circuit U.S. Court of Appeals upheld a finding that a web-hosting company and its manager were contributorily liable for permitting their customers to build websites that infringed Louis Vuitton trademarks and copyrights (Louis Vuitton Malletier v. Akanoc Solutions, Inc., 9th Cir., No. 10-15909, 9/12/11; 28 ITR 1554; 9/22/11). 

The Senate passed the H.R. 1249 Patent Reform Bill substantially modifying the U.S. system from a First-to-Invent system to a First-Inventor-to-File (FITF) system and extends “prior user rights” protection to non-patenting commercial users of later patented inventions to be consistent with the patent schemes in other parts of the world (28 ITR 1484; 9/15/11).

Jurisdiction

U.S.: 

A federal appeals court dismissed a U.S. lawsuit in holding that China provides an available and an adequate forum for redress of lawsuits by Chinese citizens who allege their children were sickened by tainted formula produced and consumed in China (Tang v. Synutra International, Inc., 4th Cir., No. 10-1487, 9/6/11; 28 ITR 1553; 9/22/11). 

Softwood Lumber

U.S.: 

The government is considering extending the U.S.-Canada Softwood Lumber Agreement (SLA) for 2 years to restrain Canadian lumber exports into the U.S. when demand is low (28 ITR 1545; 9/22/11). 

Taxation

Brazil:

The government raised its IPI Excise Tax by 30% against imported cars unless 65% of their parts are manufactured in Brazil to be exempt from the new levy unless the cars are imported from Argentina or Mexico (28 ITR 1546; 9/22/11). 

Trade

U.S.: 

H.R. 2832 and the accompanying Trade Agreement Act (TAA) amendment are poised to complete their process in the Senate Finance Committee before referral to the Senate floor for a vote to create a path forward for approval of the pending trade agreements with South Korea, Columbia and Panama and to restart the Generalized System Preference (GSP) program within a matter of weeks (28 ITR 1526; 9/22/11).

Excerpts from Economic and Financial Indicators published by The Economist, September 26, 2011.

Sources:  BLR – Bloomberg Law Reports Antitrust & Trade; BNA – BNA, Inc., Highlights: International Trade Daily (ITD), International Trade Reporter (ITR), International Trade Reporter Decisions (ITRD), TMIJ-Tax Management International Journal; IL – International Lawyer, SMU School of Law; FT – Financial Times; TE – The Economist Magazine; GATM – German American Trade Magazine of the German American Chamber of Commerce; WSJ – Wall Street Journal; ILN/ABA-International Law News, American Bar Association; International Law News, ILN (American Bar Association; LB-Lehman Brown China Business Insights International Accountants.