If you are an exporter, you know that finding legitimate international buyers able to pay for your products can be one of the more challenging aspects of doing business. One underutilized strategy for expanding your company’s global sales is to review the offerings of the U.S. Commercial Service, which is a service brought to you by the U.S. Department of Commerce and funded by the government. (more…)
Baker Donelson’s Trade and Compliance attorneys capped off their 2017 trade watch series with a year-end analysis of lessons learned during the first year of the Trump Administration, along with thoughtful projections of what we may expect in the coming months. With 2017 now behind us, we look ahead at what may be in store for trade after the withdrawal from the Trans-Pacific Partnership Agreement (TPP), sanctions involving Iran and Cuba, and NAFTA negotiations in 2018. Read our analysis here.
On June 16, 2017, President Trump issued a National Security Presidential Memorandum on Strengthening the Policy of the United States Toward Cuba. The Memorandum outlined a framework for agencies such as the Treasury Department’s Office of Foreign Assets Control (OFAC) and the Department of Commerce’s Bureau of Industry and Security (BIS) to update and implement an expanded range of sanctions directed at Cuba and the Castro regime. The most significant changes concern authorized individual travel and transactions with entities related to Cuban military or intelligence services. While the current administration seeks to roll back Obama-era Cuba policy that was geared towards reducing sanctions and normalizing relations, OFAC has yet to implement any regulatory amendments called for in the June Memorandum. For more information on the practical effect of the Presidential Memorandum and the future of Cuba sanctions, see our Cuba Sanctions 2017 update in Global Trade Magazine.
On October 12, 2017, the Treasury Department’s Office of Foreign Assets Control (OFAC) revoked certain parts of its economic sanctions regime with respect to Sudan and the Government of Sudan. OFAC issued a General License on January 17 authorizing transactions formerly banned under the Sudanese Sanctions Regulations (SSR), and that General License will no longer be needed after October 12 to engage in such previously prohibited transactions. While the decision reflects progress towards the normalization of bilateral relations between the U.S. and Sudan, U.S. companies and multi-national exporters should remain wary of the sanctions regimes and trade restrictions that remain in force through authorities in the U.S., the European Union, and the United Nations. Comprehensive due diligence remains a necessity for doing business in the region, particularly for the defense industry. Notably, OFAC can and will investigate business activities that violated the SSR before the issuance of the January 2017 General License. For more information on the revocation of the SSR and recent enforcement action, see our Sudan Sanctions 2017 update in Global Trade Magazine.
On October 17, 2017, trade representatives from the United States, Canada, and Mexico wrapped up the fourth round of negotiations concerning the North American Free-Trade Agreement (NAFTA) in Washington D.C. The latest round of negotiations were openly contentious, and a trilateral statement issued by the nations’ respective trade representatives noted that the “[n]ew proposals have created challenges” and that “significant conceptual gaps” exist amongst the current NAFTA parties. After four rounds and 22 days of negotiations, U.S. Trade Representative Robert Lighthizer stated that he was “[s]urprised and disappointed by the resistance to change from our negotiating partners.” In fact, at least five U.S. proposals have reportedly drawn pushback from our North American neighbors, leaving the parties far apart heading into the fifth round of negotiations scheduled for November in Mexico City. (more…)
On Thursday September 21st, President Trump signed Executive Order 13810 Imposing Additional Sanctions with Respect to North Korea (” the E.O.” or “E.O. 13810”). E.O. 13810 significantly expands the U.S. Treasury Department’s authority to impose a broad range of sanctions unlike those we’ve seen before. The expansion of authority includes the ability to impose “secondary sanctions” on non-U.S. parties who take part in foreign activities involving certain North Korean sectors or entities. For example, OFAC now has the power to block U.S. correspondent account access to any foreign bank that knowingly conducts or facilitates significant transactions tied to trade with North Korea. (more…)
Canada and Mexico have now appointed negotiating teams of seasoned professionals. Canada also has created a NAFTA Council comprised of public and private sector experts from the energy, auto, labor and agricultural fields. Negotiations will begin in the U.S. during the week of August 16. The next round has already been set to take place in Mexico for the week of September 10. Mexico would like the talks completed by the end of the year, well ahead of the 2018 Presidential election next July. The U.S. has so far acquiesced to such a schedule; however, the Canadians may not be as accommodating. (more…)
On May 12, Wilbur Ross, the U.S. Commerce Secretary, announced that the U.S. and China have reached a new trade deal with four components that are supposed to boost U.S. exports and close America’s trade gap with China. The questions at hand are 1) what does this trade deal mean? and 2) how will this help U.S. exporters? (more…)
The Trump Administration has implemented regulatory changes to continue its predecessors’ decade-long efforts to streamline requirements for exporters and importers. One such project, dubbed the International Trade Data System or ITDS, seeks to modernize and streamline procedures and required government paperwork for exporters and importers while eliminating redundant requirements. This process began in 2006 under George W. Bush when legislation was passed calling for the creation of a single electronic system that would serve as a one stop shop for the government agencies and businesses involved in international trade to exchange necessary documentation. (more…)
We are 100 days into the Trump Administration and the question is not what did President Trump promise and what did he do, the question is how should business prepare for the future? Let’s begin with a “State of the Union” so we can evaluate our next steps. On some policy issues President Trump did follow the lead of the last Administration. The Trump Administration has implemented regulatory changes to continue its predecessors’ decade-long efforts to streamline regulatory requirements for exporters and importers. One such project will modernize and streamline procedures and paperwork that must be filed with government agencies and eliminate redundant requirements for exporters and importers. His willingness to stay the course on this practical initiative as well as on more controversial issues like relations with Cuba, Iran, and China, suggests that President Trump may develop into a more cautious chief executive. (more…)