Balance of Trade

WTO:

The World Trade Organization (WTO) lowered its forecast of world trade growth from an increase of 6.5% increase to a 5.8% increase in FY 2012 (28 ITR 1613; 10/6/11). 

Countervailing Duties

U.S.: 

The Commerce Department preliminarily found China is providing countervailable subsidies to producers of high-pressure steel cylinders (High Pressure Steel Cylinders from China, ITA); (28 ITR 1718; 10/20/11). 

Dumping

U.S.:

The Commerce Department announced a final determination that China is dumping multi-layered wood flooring in the U.S. market and providing countervailing subsidies for this product (Multi-Layered Wood Flooring from China, ITA; (28 ITR 1717; 10/20/11). 

Export Finance

U.S.:

The International Chamber of Commerce Banking Commission signed a declaration of cooperation with the SWIFT electronic messaging service based in Belgium to allow the Commission to establish uniform rules and standards for the use of a “Bank Payment Obligation” instrument that could lead to the replacement of international letters of credit (28 ITR 1612; 10/6/11). 

Foreign Investment

 India:

Investments in Indian pharmaceutical companies by foreign firms may be allowed up to 100% ownership in new ventures pursuant to regulations to be published (28 ITR 1661; 10/13/11).  

U.S.:

The Senate ratified the U.S. – Rwanda Bilateral Investment Treaty (28 ITR 1675; 10/13/11). 

Tax Incentives

Brazil:

A decree was issued exempting the defense industry in Brazil from certain federal taxes to include the Excise Tax, the PIS Tax and Social Contribution Tax (28 ITR 1628; 10/6/11). 

Agriculture

Belgian:

The European Union (EU) issued a second fine of $12.4 million against Pacific Paint company for engaging in an illegal cartel by rigging banana import prices (28 ITR 1700; 10/20/11). 

Dumping

Brazil:

 New rules have been announced to accelerate dumping cases through reducing information that companies must provide when petitioning for dumping duties to be levied on foreign products (28 ITR 1712; 10/20/11). 

U.S.:

Gleason Industrial Products petitioned the U.S. Court of International Trade to find certain hand trucks made in China are within the scope of an anti-dumping duty order (Gleason Industrial Products, Inc. v. United States, CIT, No. 11-00398, 10/5/11; 28 ITR 1714; 10/20/11). 

Immigration

U.S.:

The Alabama Taxpayer and Citizen Protect Act (HB 56) was challenged by the U.S. Department of Justice resulting in a preliminary injunction against many features of the state immigration statute which are unconstitutional for denial of due process and for preemption of powers reserved to the federal government under the Supremacy Clause of the Constitution.  The injunction was issued against provisions (i) making it a misdemeanor for an unauthorized alien to seek or perform work; (ii) making it a misdemeanor for concealing/harboring or transporting an unauthorized alien or encouraging an unauthorized alien to come to Alabama; (iii) denying a business tax deduction for wages paid an unauthorized alien; and (iv) creating a civil cause of action against an employer who favors an unauthorized alien in the process of hiring or firing an authorized alien or U.S. worker (U.S. v. Alabama, 2:11-CV-2746-SLB, USDC, 9/28/11).

Where the Georgia state legislature enacted the Illegal Immigration Reform and Enforcement Act of 2011 (HB 87) with principal features to prohibit the concealment or harboring of an illegal alien authorizing local law enforcement officers to investigate immigration status and detain and arrest a suspect without a warrant on grounds of suspected violation of federal immigration law, the court enjoined the enforcement of the criminalization provisions respecting concealment and harboring as well as the procedural provisions that would have transferred enforcement powers to local law enforcement as provisions and powers created in violation of the Supremacy Clause of the U.S. Constitution (Georgia Latino Alliance for Human Rights v. Deal, CA No. 1:11-CV-1804-TWT, June 27, 2011).

Imports

U.S.:

Goods manufactured outside of the United States in violation of unfair competition laws of the U.S. through misappropriation of trade secrets or like unfair acts can be properly excluded from importation by the U.S. International Trade Commission under Section 337 of the Tariff Act of 1930 if that importation could potentially harm a domestic industry (TianRui Group Company Ltd. v. International Trade Commission, Fed. Cir., No. 2010-1395, 10/11/11; 28 ITR 1714; 10/20/11). 

U.S. Customs and Border Protection (CBP) seized a shipment of 10,740 imported HID conversion kits with a domestic value exceeding $570,000.00 which were manufactured for installation in head lamps not designed for their use in violation of DOT Regulations bringing the seizures to more than 400,000 kits since October, 2009 (28 ITR; 1694; 10/20/11). 

Intellectual Property

U.S.:

The U.S. Patent and Trademark Office is seeking comments on persons having experience in the Patent Enforcement System in China (28 ITR 1705; 10/20/11; ip.policy@u.s.pto.gov). 

Canada: 

Bill C-11, the Copyright Modernization Act will update existing law to align Canadian law with international standards of protection (28 ITR 1666; 10/13/11). 

China:           

A revised Trademark Law of the People’s Republic of China has been released for comment adding an additional 30 articles to the existing 75 articles in the current law (China Legal Updates, Grandall Law Firm, October 2011, www.grandall.com.cn, gregorysy@grandall.com.cn)

M&A

China:

The Ministry of Commerce (“MOFCOM”) has amended the interim provisions concerning security review for mergers and acquisitions to require a filing with the Agency (China Legal Updates, Grandall Law Firm, October 2011, www.grandall.com.cn, gregorysy@grandall.com.cn).

NAFTA

Canada:

The Department of Finance has published draft regulatory amendments to permit locomotives and railway cars to move over land from the U.S. into Canada without need for proof of origin certification (28 ITR 1713; 10/20/11). 

The Ontario Court of Appeals upheld a $77.3 million award to Minneapolis based Cargill, Inc. for the violation of Chapter 11 of the North American Free Trade Agreement by Mexico which blocked exports of high fructose corn syrup to its Mexican subsidiary (28 ITR 1663; 10/13/11). 

Trade

U.S.:

The “Currency Reform for Fair Trade Act” (H.R. 639) to realign undervalued currencies remains in committee (28 ITR 1702; 10/20/11).

The Senate Bill, “Currency Exchange Rate Oversight Reform Act” (S. 1619) directing the U.S. Treasury to flag misaligned currencies will make it easier to impose countervailing duties on imports from such countries (28 ITR 1703; 10/20/11). 

Excerpts from Economic and Financial Indicators published by The Economist, October 15, 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; Grandall Law Firm; 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.