Obama Administration Takes Position on International Trade Matters
By:
Sue Snyder, Arcie Jordan, and Salvador Castañeda
Given the importance of the economy and health care issues, we have yet to learn much about the Obama administration's trade policy. Two recent decisions, however, reveal new insight into the administration's thoughts on international trade.
China
Last Friday, September 11, 2009, President Obama announced tariffs of 35% on automobile tires imported from China. President Obama acted on information derived from a United States International Trade Commission investigation that revealed that certain passenger vehicle and light truck tires from China are being imported into the United States in such increased quantities as to cause or threaten to cause market disruption to domestic tire producers. On Monday, the Chinese government filed a formal complaint to the World Trade Organization over the U.S. tariffs imposed on Chinese-made tires. On Sunday, China also announced anti-dumping investigations into some automobile and chicken products produced in the United States.
The decision to impose tariffs on Chinese tires may have implications on the United States' trade relationship with China and may indicate a new direction of the United States' trade priorities under the Obama administration. The anti-dumping investigation started by China may give us some insight into the future of the relationship of trade between China and the U.S.
Cuba
The Cuba Embargo was reissued, but certain changes were made. Under the recent amendments to the Export Administration Regulations (EAR), Americans with family members in Cuba will have an easier time visiting, sending gifts to their relatives, and donating consumer communications devices. The licensing policy regarding telecommunications also was made more flexible.
The amendments to the EAR revise two existing license exceptions concerning exports and reexports of gift parcels to Cuba and of personal baggage taken by individuals leaving the United States for travel to Cuba. They also create a new license exception authorizing the export and reexport to Cuba of certain donated consumer communications devices, including certain computers and software, mobile phones, and satellite receivers. Finally, this rule revises the scope of existing licensing policy regarding certain telecommunications links, including satellite radio and satellite television services.
These amendments were made to promote greater contact between separated family members in the United States and Cuba and to increase the flow of remittances and information to the Cuban people. Amendments were also made to the Cuban Assets Control Regulations by the Department of the Treasury, Office of Foreign Assets Control. It is unclear whether these amendments will lead to more changes from the Obama administration that remove more trade restrictions between the U.S. and Cuba.
Jackson Walker attorneys are experienced in advising clients considering entering new international markets and on how developments in international trade law affect U.S. businesses. For more information on these issues, please contact Sue Snyder, Arcie Jordan or Salvador Castañeda in JW's Austin office at 512.236.2000.
If you wish to be added to this e-Alert listing, please
CLICK HERE
to sign up. If you wish to be removed, please reply to this e-mail with REMOVE in the subject line and include your first and last name.
