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Category Archives: Trade Agreement Compliance

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Commerce Department Finds that China Remains a Non-Market Economy Under U.S. Law

Posted in Trade Agreement Compliance, Trade Policy, Trade Remedies, World Trade Organization
On October 27, 2017, the U.S. Commerce Department issued its preliminary determination in the antidumping investigation of Aluminum Foil from China.  A key aspect of this determination was an analysis of whether China should continue to be treated as a non-market economy in U.S. antidumping investigations.  In this regard, Commerce concluded that China remains a… Continue Reading

Clues on the Future of NAFTA and Trade Agreements

Posted in Trade Agreement Compliance
While trade played a large role in the President Trump’s election, there have been few specifics on the new Administration’s objectives in that area.  This has been particularly the case regarding the Administration’s plans for revising NAFTA and negotiating new trade agreements.  The recently leaked draft letter from the Acting U.S. Trade Representative to notify… Continue Reading

USTR Releases 2017 National Trade Estimate Report

Posted in Manufacturing, Trade Agreement Compliance, Trade Negotiations, Trade Policy
The Office of the U.S. Trade Representative (USTR) today released its 2017 National Trade Estimate Report on Foreign Trade Barriers (NTE).  USTR publishes the NTE annually to provide the President and Congress with “an inventory of the most important foreign barriers affecting U.S. exports of goods and services, foreign direct investment by U.S. Persons, and… Continue Reading

U.S. Trade Representative Notes China’s Lack of Progress on Overcapacity, State-Owned Enterprises

Posted in Trade Agreement Compliance, Trade Policy, World Trade Organization
In a new report on China’s compliance with its WTO obligations, the U.S. Trade Representative (USTR) highlights a number of shortcomings, including industrial overcapacity and the prominence of state-owned enterprises (SOEs).  The report emphasizes that “excess capacity in China . . . hurts U.S. industries and workers not only because of direct exports from China… Continue Reading

Could Section 301 Return to Prominence?

Posted in Trade Agreement Compliance, Trade Negotiations, Trade Policy, Trade Remedies, World Trade Organization
Of the policy questions related to the incoming Trump Administration, one of the most compelling is whether the new President will revive Section 301 of the Trade Act of 1974 as a major component of U.S. trade policy.  Mr. Trump’s call to “direct all appropriate agencies to use every tool under American and international law… Continue Reading

U.S. G20 Fact Sheet: Mixed Signals on Industrial Overcapacity

Posted in Trade Agreement Compliance, Trade Negotiations, Trade Policy, World Trade Organization
On September 5, 2016, the White House issued a Fact Sheet summarizing outcomes from the recent G20 summit in Hangzhou, China.  On the issue of overcapacity, the Fact Sheet incorporates language promoted by China leading up to the summit, characterizing “excess capacity in steel and other industries” as “a global issue that requires a collective… Continue Reading

WTO Panel Strikes Down India’s Domestic Content Requirements on Solar Cells and Modules

Posted in Manufacturing, Trade Agreement Compliance, Trade Negotiations, World Trade Organization
A World Trade Organization Panel today issued a report finding that Indian domestic content requirements covering solar cells and modules used by solar power generators violate Article III:4 of the General Agreement on Tariffs and Trade (GATT) and Article 2.1 of the Agreement on Trade-Related Investment Measures. This is a notable victory for the United… Continue Reading

China’s WTO Subsidy Notifications – The Drama Continues

Posted in Dumping and Subsidies, Manufacturing, Trade Agreement Compliance, Trade Policy, Trade Remedies, World Trade Organization
In a World Trade Organization (WTO) submission filed on January 28, the United States once again took issue with the substance of China’s subsidy notifications to the WTO.  The WTO’s  Agreement on Subsidies and Countervailing Measures (SCM Agreement) requires WTO Members to provide annual notifications of any subsidy programs in a manner that is “sufficiently specific… Continue Reading

Congress Moves Forward on ENFORCE Trade Evasion Legislation

Posted in Dumping and Subsidies, Manufacturing, Trade Agreement Compliance, Trade Policy, Uncategorized, World Trade Organization
  Congress took an important step toward strengthening U.S. trade law enforcement by moving forward a conference report on the Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644), which includes the Enforcing Orders and Reducing Customs Evasion (ENFORCE) Act. ENFORCE addresses the serious and growing problem of evasion of antidumping and countervailing duties.… Continue Reading

USTR Submits Third China Subsidies “Counter-Notification” in Four Years

Posted in Manufacturing, Trade Agreement Compliance, Trade Policy, World Trade Organization
On October 19, the United States Trade Representative (USTR) invoked Article 25.10 of the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures (Subsidies Agreement) to notify the Chinese government of a list of measures that the United States believes should be reported to the WTO as subsidy programs. This “counter-notification” is the third… Continue Reading

China’s SOE Reform Plan Will Strengthen the Hand of the State

Posted in Trade Agreement Compliance, Trade Negotiations, Trade Policy
The state-owned enterprise (SOE) reform plan issued recently by China’s State Council and Communist Party leadership has elicited mixed reactions. The consensus seems to be that this most recent proposal is little more than a reiteration of the same contradictory measures that have been in place for more than a decade, which largely failed to… Continue Reading

U.S. Trade Representative Asks for Data on Global and Telecom Trade Barriers for Annual Reports

Posted in Announcements, Dumping and Subsidies, Manufacturing, Trade Agreement Compliance, Trade Policy
The Office of the U.S. Trade Representative (USTR) is seeking input from companies and industry on trade barriers from around the world, in preparation for its annual National Trade Estimate (“NTE”) Report on Foreign Trade Barriers as well as a more focused report on violations of telecommunications trade agreements. USTR announced its request in an… Continue Reading

China Emphasizes Political Objectives Over Market Principles in New Statements on SOE Reform

Posted in Trade Agreement Compliance, Trade Negotiations, Trade Policy, World Trade Organization
Large portions of China’s economy are dominated by state-owned enterprises (SOEs) and financial institutions that do not operate on the basis of market competition.  Recent official pronouncements make clear that any reforms that may occur in the Chinese economy during the Xi Jinping era will not include relinquishing government control over these SOEs. A widely… Continue Reading

Treasury Should Assess the Purpose of Korea’s Currency Manipulation

Posted in Manufacturing, Trade Agreement Compliance, World Trade Organization
On April 9, 2015, the U.S. Department of the Treasury released its Semi-Annual Report to Congress on International Economic and Exchange Rate Policies. Once again, Treasury concluded that “no major trading partner of the United States met the standard of manipulating the rate of exchange between their currency and the United States dollar for purposes… Continue Reading

United States Asks WTO to Examine “Pervasive” AD/CVD Duty Evasion

Posted in Dumping and Subsidies, Manufacturing, TPA, TPP, Trade Agreement Compliance, Trade Policy, Uncategorized, World Trade Organization
The United States took another step this week to turn up the heat on companies who evade antidumping and countervailing duties, by asking a World Trade Organization committee to investigate the growing problem of antidumping duty “evasion services.” In a March 16 submission to the WTO Committee on Anti-Dumping Practices Informal Group on Anti-Circumvention, the… Continue Reading

Using Stronger Trade Laws to Build Support for TPA, TPP

Posted in Dumping and Subsidies, TPA, TPP, Trade Agreement Compliance, Trade Negotiations, Trade Policy, World Trade Organization
The Obama Administration and Congress have what many experts view as a critically important opportunity to create jobs, expand trade and manufacturing, and improve the global rules of international trade.  This opportunity comes by way of the Trans-Pacific Partnership (TPP) free trade negotiations, which are now drawing to a close.  If approved, TPP would be… Continue Reading

Trains, Chips, and Servers: China Moves to Corner the IT Market

Posted in Manufacturing, Trade Agreement Compliance, Trade Negotiations, Trade Policy, World Trade Organization
The China Banking Regulatory Commission (CBRC) has issued a plan calling for “sinification” of the Chinese banking industry’s IT infrastructure, including computers, network equipment, data storage equipment, security devices, software, and other items. The plan would require that 75 percent of this IT infrastructure be Chinese-sourced by 2019.  While this state-mandated shift to domestic products… Continue Reading

WTO Decisions Create Questionable Standards for Subsidies Benchmarks

Posted in Dumping and Subsidies, Trade Agreement Compliance, Trade Remedies, World Trade Organization
In two recent disputes, the World Trade Organization (WTO) Appellate Body issued reports that make the world safer for subsidized exports.  Following decisions that restrict the Department of Commerce’s (“Commerce”) ability to identify state-owned enterprises as “public entities,” these reports raise important questions, including: Why is the Appellate Body issuing decisions that arguably safeguard state… Continue Reading

Parties Find Challenges in Negotiating the Information Technology Agreement

Posted in Trade Agreement Compliance, Trade Policy
An understanding between the United States and China at the Asia-Pacific Economic Cooperation (APEC) leaders’ summit in November has allowed formal negotiations among all parties to the Information Technology Agreement (ITA) to go forward.  The renewed negotiations, which began on December 4 in Geneva, have drawn enthusiasm from interest groups seeking to benefit from tariff… Continue Reading

Part 2: U.S.-China Economic and Security Review Commission Annual Report Analysis

Posted in Dumping and Subsidies, Manufacturing, Trade Agreement Compliance, Trade Policy, Trade Remedies
U.S.-China Commission Highlights Industrial Overcapacity, Stagnant Reforms in 2014 In 2013, there were high hopes that change was on the horizon for many of the issues that have caused tension in the U.S.-China economic relationship.  China’s new president, Xi Jinping, hailed by many as an aggressive and unapologetic reformer, unveiled an agenda at the Chinese… Continue Reading

Part 1: U.S.-China Economic and Security Review Commission Annual Report Analysis

Posted in Dumping and Subsidies, Manufacturing, Trade Agreement Compliance, Trade Policy, Trade Remedies
U.S.-China Economic and Security Review Commission Calls for Action Against Chinese State-Owned Enterprises and Unfair Trade Practices The U.S.-China Economic and Security Review Commission released its annual report on November 20, emphasizing the need for Congress, the Commerce Department, and other U.S. Government agencies to help U.S. firms affected by China’s “anticompetitive” actions and policies.… Continue Reading

Who Manipulates Their Currency? Treasury says No One.

Posted in Manufacturing, Trade Agreement Compliance, World Trade Organization
On October 16, the U.S. Department of the Treasury released its Semi-Annual Report to Congress on International Economic and Exchange Rate Policies.  The report considers whether countries manipulate the rate of exchange between their currency and the United States dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in… Continue Reading
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