.... International Trade Relations .... 2012 ..... Dr. Malawer ....... International Trade Relations .... 2012

 

                                                    

 

                                                                      NEWS ITEMS

                                                                   

                                                                 

                                                                  [2010]

                              

  • WTO rules help protect against protectionism in the trade downturn of 2009. Global trade is expected to grow 9.5% in 2010. "Trade to Expand."  WTO News Release (March 26, 2010). 
  • The U.S. Dept. of Justice has announced that Daimler has agreed to a fine of $185 million to settle charge of corrupt practices (bribery). This follows recent fines against BAE Systems and Siemens $1.3 billion . "DOJ Plays European Contract Card." Financial Times (3.26.10).
  • Brazil and the U.S. has tentatively settled the cotton case and thus have avoided imposition of Brazilian sanctions. "U.S. - Brazil Reach Agreement on Cotton Dispute." New York Times (April 7, 2010). 'U.S. - Brazil Settlement." USTR News (April 6, 2010).
  • U.S. Trade Representative Ron Kirk transmitted to Congress the 2010 National Trade Estimate (NTE) on March 31,2010, which describes significant barriers to U.S. trade and investment faced in the last year as well as the actions being taken by the Office of the U.S. Trade Representative (USTR) to address those barriers.
  • A  Wall Street Journal editorial criticizes a newer tariff war emerging in response to U.S. restrictive trade practices (antidumping). "World Tariff Wars." Wall Street Journal (April 9, 2010).
  • The Dept. of Commerce has authorized antidumping duties on the import of Chinese oil pipes.  This is one of the largest dumping decisions concerning Chinese imports. "U.S. Sets Tariff on Chinese Oil Field Pipes of up to 99%."  Washington Post (April 10, 2010).

                           

  • There is a German-Russian investigation of bribery by H-P via its foreign subsidiaries concerning computer sales to the prosecutor's office for the Russian Federation. The SEC has joined in investigating H-P. "H-P Executives Face Bribery Probes." Wall Street Journal (4.15.2010). "U.S. Joins H-P Bribery Investigation." Wall Street Journal (4.16.10).
  • Issues concerning taxation of global multinational corporations are increasing as these corporations increase their global operations. "Global Strategies & IBM." New York Times (4.20.10).
  • Defense Secretary Gates has called for the overhaul of U.S. export controls into one agency. "Overhaul of Export Licensing Controls." New York Times (4.21.10).
  • China and the U.S. seems now to be engaged in increasing antidumping actions initiated in each country -- a sort of trade and tariff standoff. "China Sets Antidumping Probe." Wall Street Journal  (4.23.10).
  • Some have criticize President Obama's export promotion policy / trade policy for failing to take into account fully the need to lower tariffs and the role of multinational corporations setting up operations abroad. "Obama Trade Goals Face Doubts." Wall Street Journal (4.29.10).
  • Recent WTO report critical of China's export restrictions. Trade Policy Review -- China (June 2010) and China and WTO generally at China and WTO (Member Information).
  • The U.S. should change its trade policies to comply with WTO/DSU decisions rather than paying temporary compensation as in the Brazil cotton litigation. "Pay to Play." Financial Times (June 22, 2010).
  • Review of dispute settlement for 2009. "Dispute Settlement." 2010 Annual Report (Chapter 4) (2010).

                                        

  • The Obama administration has set September 30th, 2010, to resolve bilateral issues concerning Russia's accession to the WTO. "U.S. Russia Relations: "Reset Fact Sheet," White House (June 25, 2010).
  • The U.S. has prevailed in most of its arguments concerning subsidies against the EU concerning Airbus. U.S. v. EU (Airbus Case) (Panel Report/Conclusions) (6.30.10).
  • Huawei, a Chinese telecom company, has been unable to get CFIUS approval for its purchase of U.S. assets (a Motorola unit). "Huawei Fails in U.S. Takeover Bid." Business Week (August 3, 2010).
  • G. E. admits violation of Foreign Corrupt Practices Act . SEC News Release (July 27, 2010).
  • A WTO panel ruled against the EC in favor of the U.S. , Japan and China Taipei concerning the import classification of computer products into the EC. deciding that they were high technology and not ordinary consumer products (cable boxes,  flat screen monitors and  3-in-one printers) and thus subject to the International Technology Agreement 0% import classification. Information Technology Case (U.S. - EC)  (Panel 8.10.10) (conclusions). "WTO Orders EU to Lift Tech Tariffs." Wall Street Journal (8.17.10). "U.S. Wins WTO High-Tech Case."  USTR Press Release (August 16, 2010).
  • The Commerce Dept. has refused to consider China's currency policies as a factor in a subsidy case involving import of aluminum products into the U.S. "U.S. Trade Decision Avoids Clash Over China's Currency." Washington Post (Sept. 1, 2010).
  • China Airlines (Taiwan) plead guilty to price-fixing. U.S. Dept. of Justice News Release (Sept. 27, 2010).
  • This article discusses five myths about exports and why U.S. exports are competitive. "Five Myths About U.S. Exports." Washington Post (Sept. 5, 2010).  In a fuller report the authors discuss U.S.  metro areas and what makes them competitive in exports. Metros and Exports (Brookings 2010). 
  • American labor unions have filed a § 301 case with the USTR alleging China's subsidization of its clean energy industry. "A Union Challenges China." New York Times (9.10.10). This article provides  an extensive review of China's practices (subsidies -- loans and land) concerning its clean energy industry (solar panels and wind turbines). "China Energy & Trade Rules." New York Times (Sept. 9, 2010).
  • An interim panel report held that Boeing received various subsidies (actionable subsidies) inconsistent with the WTO obligations of the U.S. "WTO Rules Boeing Got Illegal Aid." Wall Street Journal (9.15.10). "Airbus Chief Warns Dispute will aid Rivals." Financial Times (10.22.10).
  • The United States has filed two additional actions against China in the WTO concerning China's imposition of antidumping and countervailing duties on import of U.S. steel and China's prohibition on foreign suppliers of credit cards and payment card transactions. "United States Files Two WTO Cases Against China." U.S.T.R Press Release (Sept. 15, 2010).
  • China has imposed new antidumping duties on import of U.S. poultry  in apparent retaliation for U.S. imposition of similar duties on import of Chinese tires. "China Imposes a Steep Tariff on U.S. Poultry." New York Times (9.27.10).
  • A WTO panel ruled that the United States violated its WTO obligations toward China in the poultry case filed by China contesting USDA restrictions on processing imports from China. However, in an unusual decision the panel did not make any recommendations since the relevant statutory provision expired. "U.S.-China Poultry Dispute." WTO News (September 29, 2010).
  • Russia and the U.S. have settled many of their outstanding issues concerning Russia's accession to the WTO. "After 17 Years Russia Resolves U.S. Objections to the WTO." New York Times (October 1, 2010). You Tube video on Jackson-Vanik Amendment (2009).
  • Lamy, "Transition from Old Governance to New Governance of a New Trade Order." WTO News (October 1, 2010). (For pdf edited version).
  • The Obama administration has decided to accept the Section 301 labor union  (steel) filing and to investigate the clean energy polices of China as unfair trade practices involving subsidies and , in part, quotas and taxes on export of rare earth metals. "China Energy Review by USTR." New York Times (10.15.10). "U.S. Launches §301 Investigation into Trade & Investment Policies in Green Technologies."  USTR Announcement (10.15.10). Section 301 Petition concerning China's Green Energy Subsidies / Export Restraints (Sept. 2010 with USTR).
  • The Obama administration is considering filing a WTO case concerning China's embargo on exports of rare earth metals that is being spurred on by the Section 301 filing by the steel unions concerning the clean energy policies of China as well as by China's embargo towards Japan. "Trade Officials Ponder How to Response to China's Rare Earth Stance." New York Times (10.15.10).
  • The OECD is attempting to draft new rules concerning export financing of large civilian aircraft that represents a different world of just Boeing and Airbus players. "Aviation World at Odds Over Plane Loans." New York Times (Oct. 19. 2010).
  • Good interactive graphic of the currency wars from the Financial Times (Oct. 21, 2010).
  • A WTO panel ruled in the case brought by China against the U.S. concerning U.S. antidumping and countervailing duties imposed on various products such as steel pipe and tires that they were valid in terms of the methodology used (AD non-market economy methodology) . But the panel did find in favor of China concerning several determinations by the Dept. of Commerce. "U.S. Prevails in WTO CVD Dispute with China."  USTR News (Oct. 22, 2010). Dispute (Conclusions) (10.22.10).
  • The EU and China are in a trade dispute over the failure of China to accept the Government Procurement Agreement (GPA), a WTO plurilateral agreement. The EU wants China public sector contracts to be subject to WTO disciplines.  China is hesitant to have regional governments and SOE  subject to these rules. "EU Pushes China to Open Bidding." Wall Street Journal (10.26.10).
  • 32 WTO members have taken anti-dumping actions during the first half of 2010. "32 Anti-Dumping Actions for first half of 2010." WTO News (Oct. 26- 27, 2010). Safeguard actions reported to the WTO have shown a global decline from 43 to 26. "Reported Safeguard Actions Show Significant Decline." WTO News (Oct. 25, 2010).
  • Canada has rejected the proposed merger of BHP Billiton (Australian mining company) and PotashCorp. (Canadian fertilizer company) under the Investment Canada Act. This reflects growing rejection of global mergers for both national security and resource nationalism, leading to greater protectionism in the post-global financial crisis of 2008. "Canada Plans Foreign Investment Curbs." Financial Times (11.8.10).
  • China Airlines (Taiwan) plead guilty to price-fixing. U.S. Dept. of Justice News Release (Sept. 27, 2010). 
  • The EU is imposing a fine for violation of its competition rules concerning air cargo pricing. "EU and Air Cargo Cartel." Financial Times (11.8.10). The EU imposed a $1.1 billion dollar fine. "EU Fines Global Airlines $1.11 Billion in Cartel Case." (WSJ 11.9.10)
  • The Supreme Court is considering the Costco Case which involves the issue of "gray markets'' ("parallel imports"). Can the U.S. manufacturer (copyright holder) stop the imports of products originally manufactured abroad into the U.S. at a lower price than the suggested manufacturer's retail prices. An earlier S. Ct. case said no if the products were first manufactured in the U.S. and the sold abroad and then exported back to the U.S. "Supreme Court Hears Costco Over Swatch Sales." Washington Post (11.9.10).
  •  Virginia in the global economy.  Virginia & Global Economy / Investment. (2010). Websites for Virginia are www.yesvirginia.org and www.exportvirginia.org.
  • One of China's largest banks ICBC  and an investment fund (CICC) and foreign sovereign wealth funds from the Middle East and Singapore are participating in the IPO from GM. This is the first time a Chinese government bank is  participating in a major U.S.-issued IPO. This demonstrates the global basis of business and investment especially for multinationals and especially after the 2008 financial crisis.  "China to Play Role in General Motors IPO." Washington Post (11.14.10).
  • The problems China's Huawei are having recently in contracting with Sprint-Nextel has been consistent with such problems involving investing in the United States  because of national security and cybersecurity concerns. As a telecom supplier (routers) to telecom carriers it has faced these concerns for years. "Huawei Confident of U.S. Plans." Financial Times (11.15.10); "China's Huawei Draws Scrutiny & CFIUS." Wall Street Journal (11.19.10).
  • Ethanol blended gas exports from the United States that benefits from a general subsidy is raising issues with the EU. "U.S. Ethanol Exports Fuel European Unease." Financial Times (11.15.10).
  • President Obama faces contradictory pressures within the Republican Party, the Democratic Party and U.S. firms (imports and exporters) concerning formulating a more free trade agenda in the aftermath of the midterm elections. "Obama Sails Trade Sea." New York Times (Nov. 17, 2010).
  • The WSJ CEO Council recommends more trade and thus more jobs, focusing on exports, imports and investment . "CEO Council -- Jobs & Trade." Wall Street Journal (Nov. 22, 2010).
  • Three problems have been identified by the Director-General of the WTO in his new annual report: (i) protectionist pressures generated by global imbalances; (ii) accumulated distortion of measures restricting trade and investment; (iii) impact of stimulus and bailout measures on trade and investment. "Three Problems for the Future." (Lamy D-G 2010 Report, Nov. 2010).
  • The EU has opened an antitrust investigation of Google concerning its practices concerning its search engine and advertising. "What the EU Wants to Investigate in Google Probe." Financial Times (11.30.10).
  • Two think tanks friendly with Obama are calling for reforming the U.S.  worldwide tax system applied to U.S. firms and multinationals by doing away with taxation on foreign income. "Think-Tanks Call for Reform of U.S. Corporate Tax System." Financial Times (11.30.10).
  • A WTO panel has ruled generally in favor of China in its antidumping complaint against the EU concerning steel fastners. This is China's biggest win in the WTO / DSU. China complained that the EU's calculation of antidumping duties by use of constructive costs because it was a nonmarket economy wasn't valid. Panel Report on China - EU Iron & Steel Fastners from China. (WTO Panel 12.3.10). (Conclusions). "Biggest Legal Victory for Beijing." Wall Street Journal (12.3.10).
  • The United States and South Korea agreed upon revisions to their stalled bilateral agreement, in the wake of renewed tensions with North Korea.. This needs to be approved by the Congress. Two main revisions: continued application of 2.5% U.S. auto import duty on Korean cars for five years (dropped immediately in the original agreement); 4x increase in Korean quota for entry of U.S. autos. Other issues, however, remain (beef). "Washington Closes on Trade Deal with Seoul." Financial Times (12.3.10). Obama still needs to overcome labor unions objections in Congress. "Editorial -- Obama & Trade." Wall Street Journal (12.6.10). This agreement also results from national security concerns and represents a major global trade development in U.S. trade policy.  "Obama's Global Trade Gambit." Wall Street Journal (12.7.10).
  • An assessment of China and U.S. relations within the WTO litigation process discloses one of active and aggressive litigants. Malawer, "U.S.-China WTO Litigation (2001-2010) --Active & Aggressive Litigants." (2010).  For an earlier news account of this same general topic, see "China Trade Offensive in the WTO." Forbes (April 20, 2009).
  • The WTO Secretariat reported that during the period 1 January — 30 June 2010, the number of initiations of new anti-dumping investigations showed a 29% decrease compared with the corresponding period of 2009. The number of new measures applied also decreased during the first semester of 2010 when compared with the first half of 2009. WTO News Release (December 6, 2010).
  • The Director-General of the WTO calls upon greater coherence in global economic governance and focuses on the impact of globalization on "localizing global problems." He sees growing links between international institutions to provide for such governance especially in international financial transactions. "Restore Coherence in Global Economic Governance." WTO News (12.8.10). ("Local & Global Chart")
  • The U.S. Supreme Court divided equally over the "gray market" thus upholding the lower court's decision against such imports when produced abroad.  But it has no jurisprudential value since it was a split decision with one Justice abstaining. Thus the "first sale rule" not established when the product is manufactured and sold abroad. That rule applies to products made in the U.S. and sold abroad -- upholds the "gray market" or parallel imports. "High Court Splits Evenly in Costco Case." Wall Street Journal (12.13.10).
  • A WTO panel  ruled in favor of the United States in an action brought by China concerning U.S. safeguard duties imposed on import of tires from China. "WTO Backs U.S. in Tire Dispute with China." Wall Street Journal (12.13.10); "U.S. Prevails in WTO Section 421 Safeguard Dispute with China." USTR News (12.14.10). Panel Report  (12.13.10) and Conclusions only.
  • The USTR has requested WTO / DSU action on China's subsidies for Wind Power equipment, acting on the Section 301 steel labor union  filing requesting an  investigation of China's  clean energy polices. The USTR claims there has been  illegal subsidies (actionable subsidies) and import substitution , among other restrictions.  This continues the Obama's aggressive WTO litigation strategy and enforcement of trade obligations.  It comes a few months after the administration filed twin cases against China in the WTO in early fall (September). ""U.S. Requests WTO Dispute Settlement for Wind Power Equipment Manufacturers." U.S.T.R. News Release (December 22, 2010)." U.S.T.R. News Release (December 22, 2010).
  • The Justice Dept. and the Commerce Dept. announced a criminal plea by a Chinese subsidiary for violating U.S. reexport controls of nuclear-related material originating in the U.S. and transshipped to a third country. The subsidiary and its American parent also agreed to a civil settlement.  This is one of the largest criminal fines ever (about$3.75m) for an export violation and emphasizes the importance of parent corporations monitoring its subsidiary. "Foreign Subsidiary of PPG Industries Pleads Guilty." U.S. Dept. of Justice News Release (December 21, 2010).

                                                                                           [2011]

  • The Commerce Dept. has announced they will stop using "zeroring" when reviewing antidumping cases. This is in conformity with various decisions of the WTO / DSU against the U.S. "U.S. Moves to Defuse Trade Dispute." Financial Times (Jan. 5, 2011).
  • The new Defense Dept. authorization law signed in Jan. 2011 requires DOD to buy solar panels only from countries that have signed the Government Procurement Agreement (GPA). China has not signed it. "Pentagon Must 'Buy American,' Barring Chinese Solar Panels." New York Times (1.10.11). 
  • In assessing the retail price of the iPhone the Asian Development Bank determined that only $6.50 was the value added by Chinese assembly of the phone. This leads to the conclusion that bilateral statistics are misleading (since the entire value is attributed as a Chinese import into the U.S.) This editorial argues that imports drive domestic U.S. innovation (for example, offer of data services), companies ought to capitalize more on a global economy, and that imports spur new domestic growth. "The $6.50 Trade War." Wall Street Journal (Jan. 11, 2011).

                                                       China shapes the world series

  • "China wants to forge a new phase of globalisation where many of the roads – financial, commercial and perhaps eventually political. China is not seeking a rupture with the international economic system (although some foreign companies are fearful of a technology grab). But it is looking to mould more of the rules, institutions and economic relationships that are at the core of the global economy. It is trying to forge post-American globalisation." "A Strategy to Reshape the Planet," Financial Times (Jan. 18, 2011). See China series in the Financial Times (Jan. 2011) in light of President Hu Jintao's state visit to Washington.
  • A WTO panel has ruled against the U.S. concerning use of zeroring in antidumping cases. Korea- U.S. Zeroing in Antidumping (WTO Panel Jan. 18, 2011).
  • The USTR office issued its 2010 report on China in January 2011. 2010 Report to Congress on China's WTO Compliance (USTR 2011) pages 1-14.
  • The WTO is "the greatest advance in multilateralism .... It provides enhanced rule-based global economic trading system .... Its dispute resolution mechanism has proved robust and effective ...  (It has) many characteristics of a global legal system ..... [I]n the highly sensitive area of trade a quasi-judicial system of adjudication ... is [the] objective." "Sutherland, "The World Will Regret its Neglect of Doha." Financial Times (Jan. 28, 2011).
  • President Obama is considering a dramatic reorganization of trade agencies that would combine elements of the Commerce Dept., USTR, OPIC, Ex-IM, SBA and others into a new Dept. of Business, Trade and Technology (Dept. of BTT). "Agency Revamp Focuses on Trade." Wall Street Journal (1.29.11).
  • A WTO panel issued its  report, to be released formally in a few weeks, that Boeing received illegal state subsidies ($2b) and federal subsidies ($5b),  including government research and development funding by Defense and NASA, which distorted market competition. The EU contends it is entitled to $45 billion in retaliation. "WTO Lowers the Boom on Boeing." Wall Street Journal (January 31, 2011).
  • National security  reviews in the U.S. and elsewhere are being used more to assess China's growing investment and global corporate expansion. "Actions of U.S. and China to Shape Deals to Come." New York Times (February 2, 2011). 
  • President Obama calls  for reorganization of trade agencies, review of international corporate taxation, and general promotion of trade and commercial diplomacy.  Obama, "Globalization, Exports & Trade." White House video. (Speech at the U.S. Chamber of Commerce, Feb. 7, 2011). (Outline)
  • The WTO is supporting a plan to improve trade figures to more accurately reflect the global supply chain. "World Trade Statisticians Set Up Plan to Improve Trade Figures." WTO News (Feb. 7, 2011).
  • The Office of the United States Trade Representative (USTR) announced today that the United States requested the World Trade Organization (WTO) to establish dispute settlement panels in two cases against China. One case addresses China’s imposition of antidumping duties and countervailing duties on imports of grain-oriented flat-rolled electrical steel from the United States. The other case challenges China’s discriminatory and restrictive treatment of U.S. suppliers of electronic payment services. "USTR Requests Two New WTO Dispute Settlement Panels Against China." USTR News  (Feb. 11, 2011). This new approach is part of an evolving strategy to press for more market access instead of currency change, " U.S. Files Two New Trade Cases Against China in WTO." Washington Post (2.11.11).
  • U.S. exports have surged surpassing Germany and manufacturing is significantly larger than agricultural exports. "U.S. Exports Soar."  New York Times (2.12.11).
  • The WTO has issued an interim panel report against China in favor of the U.S. and others concerning its export restrictions. (This case does not refer to export of rare earth minerals, which may be subject to a new filing by the U.S.) "Three Judges Finds No Case for Some of Beijing's Export Restrictions." Wall Street Journal (2.17.11).
  • Huawei dropped its bid to get approval from CFIUS for its prior acquisition of 3Leaf Systems. Huawei  is the world's second largest telecom company. CFIUS recommended against it and the President's action was pending. "Huawei Drops U.S. Deal." Wall Street Journal (2.21.11).  All global technology firms have a global supply chain from multiple sources. "U.S. Sees a Threat from China, Inc."  Wall Street Journal (2.28.11). Huawei has asked for an unusual formal investigation to clear its name.  "China Telecom Seeks Inquiry to Clear Name." New York Times (2.26.11).  Beijing municipal government has formed a new partnership with a foreign equity firm,  as a mean of reducing national security concerns, to encourage foreign expansion of Chinese firms. "Beijing Sets Up Fund for Outbound Investment." Financial Times (March 14, 2011).  Good review of Huawei efforts to enter the U.S. market and CFIUS opposition.  "China and the U.S.: Access Denied." Financial Times (April 8, 2011).  See general article on CFIUS -- Malawer, Global Mergers and National Security (2006).
  • The proposed takeover of a small U.S. aircraft maker by China Aviation Industry Corp. (AVIC), a state-owner enterprise, has drawn request for a CFIUS review.  "China-U.S. Aviation Deal Faces Scrutiny." Wall Street Journal (March 7, 2011).
  • China has filed a new action in the WTO  requesting consultations with the U.S. concerning its antidumping measures  on shrimp imports from China. "China Files Dispute Against the U.S." WTO News (Feb. 28, 2011).
  •  The Appellate Body (AB) reversed much of the panel report which ruled in favor of the U.S. The U.S. had argued that its CVD against China were justified because of Chinese subsidies on export of steel and other products. This decision addressed both "public bodies" and "double remedies."  (Steel & Certain Products from China) WTO News (March 11, 2011). (Summary of Case). The following is a very interesting Wall Street Journal editorial agreeing with the WTO (AB)  decision against the U.S. restricting the use of countervailing duties on non-market economies, restricting the definition of "public bodies," and thus restricting further the finding of government  subsidies. It also notes generally that China's is integrating itself more into the global trading system by observing global trade rules. "A Welcomed Trade Win for China." Wall Street Journal (March 22, 2011).
  • Pearlstein (from the Washington Post) in reviewing Dani Rodrik new book on free trade states: "[T]hat globalization will work for everyone only if all countries abide by the same set of rules, hammered out and enforced by some form of technocratic global government. The reality is, however, that most countries are unwilling to give up their sovereignty ...." "Free Trade in the Real World." Washington Post (March 13, 2011).
  • IBM has agreed to a civil fine for violating the Foreign Corrupt Practices Act concerning bribery of  government officials by employees of it subsidiaries in Korea and China. "IBM Settles Bribery Charges." Wall Street Journal (March 20, 2011).
  • Martin Wolf in the Financial Times argues that it is in the national interest of China to support a stable global trading system. In particular, to assist to further develop a rules-governed, institutionally based global system. That China should be a  guardian of the open trading system. "How China Should Rule the World." Financial Times (March 23, 2011).

  • The U.S. share of the global satellite market has fallen from 73 percent in 1998 to less than 30 percent today  because of too strict export controls. “Strict Export Controls Cost Market Share.” Washington Post (March 28, 2011).  

                                               

  • The panel report was issued in the Boeing Case and it ruled against the U.S. It was very interesting in the variety of issues it considered in the context of subsidies.  The panel focused on prior export tax subsidies, actionable and specific subsidies by both the federal and state governments.  WTO News (March 31, 2011). See also, Summary of Conclusions (Panel 3.31.11);  Summary of Findings;  Summary of Case.   See also  Video and New York Times article (April 1, 2011). USTR outs a different spin on the case. "U.S. Prevails in WTO Dispute over Large Civil Aircraft." USTR News Release (March 31., 2011).
  • Siemens has prospered under global trade sanctions while doing business in Iran in the nuclear field.  "Siemens -- Iran & Trade Sanctions and Video." Wall Street Journal (April 5, 2011). 
  • Good review of Huawei efforts to enter the U.S. market and CFIUS opposition.  "China and the U.S.: Access Denied." Financial Times (April 8, 2011). 
  • Johnson & Johnson violated FCPA by bribing foreign government doctors concerning purchase of drugs and medical devises in a host of foreign countries.  These were activities on by employees of foreign subsidiaries.   "Johnson & Johnson Criminal Fine of $21.4  Million for Violating Foreign Corruption &$48.6 Million Disgorge Profits to SEC." USDOJ News Release (4.8.11).
  • GE's multinational tax bill (zero)  has raised a furor over U.S. multinational taxation (repatriation and investment overseas) and issues of the worldwide tax system used by the U.S.. "How a Multinational Company like GE handles Taxes." Washington Post (4.10.11). U.S. multinationals are creating more jobs more abroad than i the U.S. They account for 20% of the workforce in the U.S. However, multinationals have a diversity of situations. For example Boeing and Caterpillar export from the U.S. while others such as Intel produce abroad. "U.S. Multinationals, Jobs Abroad & Economic Globalization (and Video)." Wall Street Journal (4.19.11).  Much of the U.S. growth since the global recession has been exporting abroad to meet foreign demand. "Manufacturing & Exports."  Wall Street Journal (April 21, 2011).
  • The Financial Times calls for sector-specific negotiations rather than a "single undertaking. ""Doha is Dead ." Financial Times (April 19, 2011).
  • The Appellate Body has upheld the findings of the panel concerning "actionable subsidies" ("Launch Aid" and "infrastructure aid") against the EU in the Airbus Case while reversing findings considering launch aid as an "export subsidy."  WTO News Release (May 18, 2011). (Summary of Rulings). This will probably result in the EU adjusting the future loan rates for such aid. "WTO Gives Airbus Mixed Win -- Big Win for EU." Wall Street Journal (May 19, 2011); "WTO Ruling on Airbus Subsidies Upheld on Appeal." New York Times (May 19, 2011).
  • Proposals are moving forward in the WTO to revamp trade statistics to account for value-added in the global supply chain rather than ascribing the total value to he export of the final product. The increasing internationalization of supply chains is challenging our interpretation of conventional trade statistics, as traditional concepts like country of origin. Global Supply Chain & Trade Statistics (WTO 2011). "Trade Patterns & Global Value Chains." WTO News (2011).
  • The Foreign Account Tax Compliance Act (FATCA), to be implemented in January 2013, applies U.S. tax rules extraterritorially to global financial companies.  It requires the reporting of U.S. customers' account in excess of $50,000 and failure to do so may impose a 30% withholding tax on sale of  U.S. assets (including U.S. Treasury bonds). "U.S. Demands Tax Tolerance of Foreign Financial Groups." Financial Times (June 14, 2011).
  • This is a good article discussing litigation by corporations against governments under bilateral investment treaties, regional trade agreements (NAFTA, CAFTA). They often put the disputes before their own panels, arbitration tribunals (if have no int'l agreement but per contract clause), or the World Bank (ICSID). "First a Gold Rush, then the Lawyers." (New York Times (June 26, 2011).
  • The U.S. argues that the proposed European emission tax on airlines flying into the EU is an illegal extraterritorial measure and has filed suit in the European Court of Justice. "EU Carbon Emissions and U.S. Airlines." Financial Times (July 5, 2011).
  • The reach of Sarbanes-Oxley (2002) concerning corporate governance and financial oversight is extraterritorial as to foreign auditors auditing foreign companies listed in the U.S., including "reverse mergers," especially of Chinese companies lately. "Reverse Mergers and U.S. Regulators." Financial Times (July 5, 2011).
  • A WTO panel has found in favor of the U.S., the EU and Mexico and against China concerning its export restrictions on various (9) minerals. These restrictions included export quotas, tariffs and minimum export prices. China relied upon environmental arguments but the panel rejected them because there were no corresponding measures to limit domestic industries. WTO News .  (Panel July 5, 2011). "WTO Faults China's Export Curbs." Wall Street Journal (July 5, 2011). "The Folly of Export Restrictions." Financial Times (Editorial July 7, 2011). "It's Protectionism." New York Times (July 19, 2011).
  • A WTO panel has ruled against the U.S. in using zeroring and on other issues concerning its antidumping duties on shrimp from Vietnam.  WTO News (July 11, 2011).  WTO Panel -- U.S. Vietnam  (July 11, 2011) (summary of findings).
  • The Dodd-Frank legislation (2010) has a number of extraterritorial provisions, for example, concerning  payments to foreign governments, war minerals and new restrictions on proprietary trading and the derivatives business that apply in foreign countries if there’s a “direct and significant connection with activities.” "Dodd-Frank Legislation -- Exotic Provisions." New York Times (July 13, 2011). 
  • The Foreign Corrupt Practices Act is under attack from the U.S. Chamber of Commerce. "A Quandary for U.S. Companies: Who to Bribe?" Washington Post (July 24, 2011).
  • Some are calling for Lamy's to be replaced because of his leadership failure (Doha). "End the Charade in Talks on Global Trade." Financial Times (Aug. 24, 2011).
  • The Commodity Exchange Act and the Commodity Futures Trading Commission (CFTC) are applying  rules extraterritorially to investigation actions of foreign banks and commodity traders a concerning Libor (the London based index). "Criminal Route Eyed in Libor Inquiry." Financial Times (Sept. 8, 2011).
  • China has linked investment into the EU to help solve the debt crisis in the EU, to trade demands for the EU to reclassify China as a "market economy" for purposes of trade remedy litigation. Specifically, this would require dropping the "constructive approach" utilizing third-market prices in determining the home-market  price of goods in China, in favor of actual prices in China.  This clearly illustrates the rising importance of trade to investment decisions in the context of high politics between major trading states. "China Ties Aiding Europe to its Own Trade Goals." New York Times (September 15, 2011).
  • A recent editorial based upon a new report from the Council of Foreign Relations declares "(F)ederal, not just state-led, efforts to court foreign investors" are required for U.S. job creation. "A Pro-Trade Agenda for U.S. Jobs." Wall Street Journal (9.17.11). These are the authors of the recent Council of Foreign Relations report "U.S. Trade and Investment Policy" (Council on Foreign Relations) (Sept. 2011).
  • The AB has ruled in favor of the United States against China concerning safeguard charges on tire imports, by upholding the earlier  panel report. "U.S. Prevails in WTO Dispute about Chinese Tire Imports." USTR News (September 2011). 
  • Job creation is now viewed as the number one global issue. "For Jobs, It's War." New York Times (September 17, 2011). 
  • The USTR has filed a new action against China in order to protect American jobs. " New Action in WTO Contesting China's A / D on Chicken Imports from U.S.." USTR News (September 20, 2011).
  • The "Buy American" provision in President Obama's "American Jobs Act" is viewed by some as an "anti-stimulus trade provision " similar to that in the earlier 2009 stimulus legislation ." " ' Buy American' Redux." Wall Street Journal (Sept. 30, 2011).
  • The Senate is considering legislation requiring estimates of currency undervaluation when calculating anti-subsidy import tariffs. "U.S. Senate to Vote on China Tariffs." Financial Times (Sept. 29, 2011). This is considered by many to be illegal under WTO rules. "China Bashing is Back with a Bang." Financial Times (Sept. 30, 2011). "U.S. Congress Presses China on Currency." Financial Times (10.3.11).
  • Some recent cases concerning China WTO trade litigation for 2011.
  • The Congress  passed and the President has signed the three bilateral free-trade agreements with Panama, Columbia ns South Korea. "Statements Regarding the Congressional Approval of the Korea, Colombia, and Panama Trade Agreements." USTR News (10.14.11). "Free Trade Agreements (FTA)  and Trade Adjustment Assistance (TAA)." USTR News (website). Kirk, "A New Era for U.S. Trade Policy." USTR News (Oct. 21, 2011).
  • A new dumping / subsidies case was filed  by American solar panel makers attacking China’s subsidies to its manufacturers. This case may or may not be easy to win. Even with reliance on the fact that China is considered a non-market economy, so it’s easier to establish trade remedy violations, this could be a difficult case to win. This is because of the complex nature of the financial structures and corporate transactions involved. "Chinese Trade Case (Solar Panels) Has clear Targets, Not Obvious Goals.' New York Times (October 21, 2011).
  • The U.S. Dept. of Justice has expanded its global bribery prosecutions and civil forfeiture proceedings to recover property in the U.S. bought with corrupt money from foreign government officials. "Recent Statement Concerning Foreign Bribery and Money Laundering (Anti-Kleptocracy Initiative)." USDOJ (May 25, 2011).
  • The working party in the WTO has completed the deal concerning Russia's accession to the WTO. This can be completed by Russia in the next 2-6 months. "Russia's Membership." WTO News (Nov. 10, 2011). Op/Ed on Russia and WTO.  New York Times (Nov. 11, 2011)
  • Series of articles from the China Daily for the month of November 2011 concerning U.S. - China trade relations and global trade generally. China Daily articles.  (Nov. 2011).
  • A trade war may be brewing between the U.S. and China over the ITA's opening a case against China concerning A/D and CVD in the export of solar panels to the U.S. "Trade War in Solar Takes Shape." New York Times (Nov. 9. 2011).
  • The U.S. Chamber is leading an effort to amend the Foreign Corrupt Practices Act to provide in part a better definition of "foreign government official" to take into account state-owned enterprises or firms with foreign ownership. In the last five years the U.S. Dept. of Justice actions have led to $4 billion in fines against U.S. and foreign corporations. "Critics Target Bribery Law." Wall Street Journal (11.28.11). 
  • U.S. - China trade relations is constantly under assessment as a political issue within the U.S. and debate over it is heating up. "U.S. - China Trade Ties: A Heated Exchange." Financial Times (12.4.11).
  • The WTO approved Russia's membership in the WTO. The Duma needs to approve it. The U.S. will be in violation of its WTO obligations until the Jackson Vanik Amendment and the Obama administration is seeking its repeal. "WTO Grants Russia Membership and U.S. Needs to Repeal Jackson-Vanik." New York Times (December 17, 2011). "Statements Regarding Russia's Accession to the WTO." USTR News Release (December 16, 2011).
  • Recent developments in U.S. - China trade litigation (December 2011): 
    • China has imposed antidumping duties on U.S. auto  imports  "Chinese Impose New Tariffs on U.S. Autos." New York Times (12.15.11); 
    • U.S. has launched a new WTO action concerning Chinese restrictions on import of U.S. poultry (chicken feet) "Chinese Snack Food and WTO Case." Washington Post (December 18, 2011); 
    • U.S. is concerned over China cyberwar concerning Chinese actions to promote state-owned enterprises (cyber warfare for commercial gain) "China's Cyberwar." Washington Post (December 16, 2011).
  • The final ruling by the US International Trade Commission in the §337 case for patent infringement brought by Apple against HTC involving Google patents and software, a key test in the smartphone wars, was only a very limited victory for Apple. "Apple Wins Limited Victory over HTC in Phone Patent Fight." Financial Times (December 20, 2011).
  • Lamy, "Stand Up  for Multilateralism." WTO News (December 15, 2011) ("Panel on Multi-Stakeholders of the WTO").
  • Lamy, "China's 10-Year WTO Membership." WTO News (December 11, 2011); Lamy, "Russia's Accession to the WTO." WTO News (December 16, 2011).
  • Offshore incorporation of U.S. firms are often for tax and regulatory advantages. Private equity firms in their investments often take advantage of this procedure. "Foreign Incorporation & Globalization." New York Times (December 20, 2011).
  • The Court of Appeals for the Federal Court ruled that countervailing duties cannot be imposed on products from nonmarket economies (China). GPXINTL/ Tire Corp. Case.  (CAFC December 20, 2011). "Setback for Washington on China Import Tariffs." Financial Times (December 20, 2011).
  • "The USTR 2011 Year in Review of Trade." USTR News (December 22, 2011).

                                                                                                                [2012]  

  • International arbitration of corporate investment claims against foreign states is a major means of global governance in resolving such claims. Arbitration by the International Chamber of Commerce in Paris (International Court of Arbitration) and the World Court's International Center for Settlement of Investment Disputes (ICSID) are often the preferred  vehicles, such as in the current claims by Exxon Mobil against Venezuela concerning nationalization of Exxon's assets. "Arbitration Award of Exxon is Detailed." New York Times (Jan. 3, 2012).
  • President Obama has proposed sweeping trade reorganization. "President Obama Proposes Reorganizing Trade Agencies." Wall Street Journal (Jan. 13, 2012).
  • "Obama -- Exports on Track." New York Times (January 20, 2012).
  • The WTO AB ruled in favor of the U.S. upholding most of the panel's recommendation concerning the inconsistency of China's restrictions on export of various raw materials. These restrictions include among other -- export quotas, minimum export price, and licensing requirements. The AB viewed these restrictions as artificially increasing world prices and lowering prices for Chinese products. "U.S. Victory on Raw Material Export Restraints." USTR Release (January 30, 2012). "AB Issues Report on Material Disputes." WTO News (January 30, 2012).
  • Two Japanese suppliers of auto electrical components agreed to plea guilty in an international antitrust price-fixing case and to pay the second largest criminal fine ever ($548m). Four executives have also agreed to serve prison time. "Yazaki Corp Plead Guilty to Price-Fixing." U.S. DOJ News (January 30, 2012).
  • A coalition of U.S. firms plan to convince the Obama administration to file a series of trade cases alleging unfair Chinese subsidies on export of auto parts to the U.S. "A Trade Collision Course." New York Times (January 31, 2012).
  • The U.S. has agreed to stop using the "zeroing methodology" in antidumping disputes, in an agreement signed with the EU and Japan, that avoids WTO authorized sanctions. "Solution to Zeroing Disputes." USTR News (Feb. 6, 2012).
  • A free-trade economist and critic of President Obama's trade policies lists his various grievances: the President's criticism of outsourcing while promoting domestic manufacturing; the President's rejectionist policies concerning Doha; the President promoting the Trans-Pacific Partnership in lieu of Doha and against China; the President has "surrendered to the manufacturing fetish." "Obama Panders on Trade." Financial Times (Feb. 7, 2012).
  • The EU is risking a new trade war by its imposition of a carbon tax on foreign airlines flying into and out of Europe. This is viewed as a form of "Euro-imperialism." "Europe's Carbon Trade War." Wall Street Journal (Feb. 8, 2012).
  • Steel workers are in support of President Obama's budget proposals to put millions of dollars to support the new Interagency Trade Enforcement Center (ITEC). "USW Statement on Obama's 2013 Trade Enforcement Budget." USW Press Release (Feb. 12, 2012).
  • Chinese perceptions of an unfavorable investment climate in the U.S. is restraining new Chinese investment into the U.S., where it dropped last year (2011). "Perceptions and Chinese Investment." Washington Post (Feb. 12, 2012).
  • A record low of 8 new disputes were filed in the WTO for 2011. WTO Chart (1995-2011 Disputes Filed). (WTO 2012).
  • "New Exports" include tourism and tuition -- foreigners visiting the U.S. and foreign students tuition payments (in addition to foreign royalties) are bright spots to increase U.S. exports. "America's New Export." Wall Street Journal (Feb. 22, 2012).
  • The U.S. Dept. of Justice recently experienced a defeat in one foreign bribery case (FCPA) concerning Gabon and a victory in another case (plea agreement) concerning Nigeria. The USDOJ has been very aggressive in pursuing commercial bribery of foreign officials, but its trial tactics might need to be improved a bit. "Bribery Case Falls Apart." New York Times (Feb. 23, 2012) and "Foreign Bribery and Kickback Schemes." US Dept. of Justice News (Feb. 23, 2012).
  • The U.S. Chamber of Commerce has been aggressive in trying to change the foreign corruption law to include a "compliance defense" in criminal proceedings. Others have argued that nothing should be done to make the U.S. less than a leader, as it is now, in the ethical conduct of international business. "Bribing Foreign Officials." Washington Post (2.27.12).
  • Director-General Pascal Lamy recently stated that unlike in previous global economic downturns, “there had been a significant decline in initiations of new (anti-dumping) investigations, from 213 in 2008 down to 153 in 2011.” "Significant Decline in Anti-Dumping Investigations."  WTO News (February 27, 2012).
  • The Supreme Court recently heard oral arguments involving corporate responsibility (Royal Dutch Shell), for cooperating with a foreign government (Nigeria) in torture in contravention of human rights law, under the U.S. Alien Tort Statute. The Obama administration argues there is corporate responsibility and the defending oil company contends that corporations aren't subject to international human rights restrictions, as to allow an alien to sue them under the statute. The Supreme Court raised the larger question and asked for briefs on whether anyone should be held liable under the statute -- corporations or individuals. This case is giving the Supreme Court the opportunity to address the even larger issue of international as part of U.S. law generally, a major concern of many conservative jurists. "Court Wary of Torture Cases." Wall Street Journal (2.29.12); "Corporate Abuse Abroad, A Path to Justice Here." New York Times (March 3, 2012); "Justices to Consider Broader Question." Washington Post (March 6, 2012).
  • The U.S. filed a new WTO dispute against India concerning its agricultural restrictions. This is the fifth time the U.S. has brought a WTO action against India and the first time for the Obama administration. This represents the more aggressive trade enforcement policy of the U.S. The U.S. filed a similar suit against China recently concerning poultry imports. Actions against India in the WTO have somewhat been under the public radar.  Actions against China have had a higher profile and priority since the Bush administration. This may be changing, somewhat. "U.S. Files Agricultural Dispute Against India."  WTO News (March 6, 2012). "U.S. Takes India Ban on Poultry Imports to WTO." Financial Times (March 7, 2012).
  • The Appellate Body upheld some claims of the EU against the U.S. concerning subsidies to Boeing. The USTR claimed this as a victory because of the smaller amount of subsidies found when compared to those found in the U.S. case against the EU and its subsidies to Airbus. "Appellate Body Report of Boeing." WTO News (March 12, 2012); "U.S. Victory in WTO Aircraft Dispute." USTR News (March 12, 2012).
  • The U.S. along with Japan and the EU filed disputes against China concerning China's export restrictions on various rare earths and other metals. "U.S., Japan and EU File Disputes Against China." WTO News (March 13, 2012). The Obama administration argues that is has brought twice as many trade cases against China than the Bush administration.  This case follows a recent AB decision in January 2012 against China’s export restrictions over nine raw minerals. This new case clearly indicates a continuing and more aggressive trade policy by the U.S. against China that makes the WTO / DSU a central forum in U.S. – China trade relations. Other trade issues with China that will likely see action in the near future are auto parts, cars, solar panels and anti-subsidy laws. New legislation was recently passed by the Congress and signed by the President allowing countervailing despite the non-market status of China. “U.S., Japan and EU File Disputes Against China.” WTO News (March 13, 2012). “U.S. Challenges Restraints on Rare Earths.” USTR News (March 13, 2012). “Obama Announces WTO Case Over Rare Earths.” CNN (March 13, 2012) (Obama video, CNN news report, and CNN report on prior raw minerals case).
  • The following are two interesting charts comparing the Bush and Obama administrations in bringing cases against China in the WTO. They indicate the increased rate and focus of the Obama administration n filing such cases. One chart of the Clinton, Bush and Obama administrations filing WTO cases generally.  This shows a significant decline in filing cases since President Clinton's administration. Malawer, "Three Charts Concerning China Cases in the WTO and More (1993-2012). (March 21, 2012).
  • The Dept. of Commerce imposed preliminary countervailing duties for export subsidies that China provides for solar panel exports.  This is another item in the increasing U.S. - China trade frictions and will probably wind up in the WTO. "Solar Panel Subsidies." New York Times (March 21, 2012).
  • Ron Paul's video on China Trade. (2012).
  • Director-General Lamy argues that exchange rates are barely addressed by WTO Article XV, there has been no interpretation of that provision, and WTO rules should not be the scapegoat in the current non-system of financial and monetary regulation. The IMF needs to address the trade aspects of exchange rates.  Lamy, "International Monetary System and Facilitating International Trade." (March 27, 2012). See also, "2012 WTO Seminar on Exchange Rates and Trade." (March 27-28, 2012).
  • There's a good editorial in the Financial Times on Huawei, cyber crime and foreign business. It states in part, "Cyber crime and (commercial and military) espionage originating in China and Russia are overtaking terrorism as a major security concern in developing countries .... Protectionism must not be allowed to hide behind spurious claims of national security."  "Huawei's Woes." Financial Times (March 28, 2012).
  • The U.S. has requested a compliance panel against the EU for failure to comply with the recommendations in the Airbus Dispute. "U.S. Challenge to Europe in Aircraft Dispute." USTR News (Match 30 2012). "Dispute Panel to Examine EU Compliance in Airbus Case." WTO News (April 13, 2012).
  • Brazil has various trade disputes and currency issues with a number of countries. For Brazil the “currency wars” continue with the high valuation of its currency. Brazil continues to have issues with the United States concerning export of Brazilian aircraft, U.S. agricultural subsidies, and import restrictions. “The New Trade Routes: Brazil and China.” Financial Times (Special Report 2011). 
  • Foreign parent corporation and U.S. subsidiary found guilty after trial of price-fixing (Taiwan LCD producer). AU Optronics Corporation. USDOJ News (March 13, 2012).  
  • India has filed a new action against the U.S in the WTO concerning countervailing duties is has placed on steel coming from India.  "India Files Dispute Against the U.S." WTO News (April 12, 2012).
  • The USTR Ron Kirk argues in the Wall Street Journal  today that the Obama administration believes the service sector can do more business abroad. He argues that's why the Trans-Pacific Partnership negotiations focuses on services and investment as its cornerstones. "Rethinking 'Made in America'." Wall Street Journal (April 18, 2012).  This is also why the USTR started to publish, in 2010,  "Notorious Markets" separate from the annual Special 301 reports. This report focuses on identifying physical and Internet marketplaces where infringing goods and services are sold. The most recent report was released in December 20, 2011. "Results of Special 301 Review of Notorious Markets." USTR News (December 20, 2011) and "Review of Notorious Markets." USTR Release (December 20, 2011). The plurilateral agreement, the Anti-Counterfeiting Trade Agreement (ACTA) was signed in October 2011.  Its aim is to further enforcement of intellectual property rights. ACTA attempts to deepen international cooperation. This agreement will come into force when additional diplomatic steps are taken. ACTA (USTR website).  
  • Wal-Mart is the latest multinational corporation that that may be now facing a huge case involving corporate bribery  of foreign government officials under the Foreign Corrupt Practices Act. This case involves paying bribes to help expand its stores in Mexico. "Wal-Mart Covered Up Bribery, Report Says." Washington Post (April 22, 2012); "Vast Mexico Bribery Case Hushed Up by Wal-Mart." New York Times (April 22, 2012)."Wal-Mart Corruption in Mexico." (CNBC video April 23, 2012). Malawer, "Corrupt Practices Prosecutions." (April 2012). "Lay Person Guide to FCPA." (USDOJ website).
  • The USTR released the revised 2012 model of the "Bilateral Investment Treaty." This is the first revision since 2004. "U.S. Concludes Review of Model Bilateral Investment Treaty." USTR News (April 20, 2012). "Text of Model BIT Agreement." (USTR 2012). "Fact Sheet for the Model Bilateral Investment Treaty." USTR News (April 20, 2012) (labor / environment, transparency and state-led economies / state-owned enterprises).
  • Apple is the latest high-tech corporation targeted by the press for its aggressive tax strategies that leave state, federal and foreign countries with less tax payments than from traditional corporations such as Wal-Mart. Apple routes its transactions trough no-income tax states such as Nevada as well as low-income countries globally. This is made more possible because of the digital nature of its products and intangible income (such as license fees). The impact is not only on the U.S. and other countries but on cash-strapped states facing budget stress. "How Apple Sidesteps Billions in Taxes." New York Times (April 29, 2012).
  • The EU carbon tax fears sparking a global trade war with China, Russia and the U.S. opposing the EU carbon tax on international flights entering the EU. CNBC Video -- EU Carbon Tax & Global Trade War (CNBC March 22, 2012).
  • The USTR just released the new Special 301 report on enforcing IPR. It identifies "indigenous innovation" and copyright piracy as continuing problems."2012 Special 301 Report." USTR News (May 2012). "2012 §301 Report." (USTR April 2012).
  • The two nations imposing the most safeguard actions from Oct. 2011 - May 2012 were Turkey (6) and Indonesia (5). They were a total of 26 safeguard actions during this period. "Review of Safeguard Actions." WTO News (April 27, 2012).

 

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