Dumping

U.S.:

The International Trade Commission (ITC) found that U.S. industry is threatened with material injury by importation of multi-layered wood flooring from China at less than fair value (27 ITR 1897; 12/9/10).

Procurement

Brazil:

The Congress approved the Executive Decree that government purchases may prefer Brazilian origin products and services  even if they are as much as 25% more expensive than goods and services of foreign origin (27 ITR 1853;12/29/10; Editor Comment: this is similar to the same rule under the U.S. Buy American Act).

Unfair Competition

U.S.:

The International Trade Commission announced a probe of Rolls Royce, PLC on allegations of  unfair competition and patent infringement regarding its turbo machinery, blades, engines, and components (27 ITR 1938; 12/16/10).

Foreign Investment

Dubai:

A new free zone is being set up to allow 100% foreign ownership of companies that help wean the economy away from oil dependency (27 ITR 1860; 12/2/10).

Russia:

The Russian Federation and European Union (EU) reached agreement that will accelerate its accession to the World Trade Organization (WTO)(27 ITR 1840;12/29/10).

Bilateral Agreements

Brazil:

Eleven nations signed a trade pact reducing tariffs ranging from 20-70 percent to include the countries of Argentina, Brazil, Cuba, Egypt, India, Indonesia, Malaysia, Morocco, Paraguay, South Korea and Uruguay, together which have a combined Gross Domestic Product exceeding $5 trillion (27 ITR 1951; 12/23/10).

Korea:

A new supplemental agreement to the draft Free Trade Agreement (FTA) will allow US automakers to compete freely in the Korean car market settling an issue long embedded in the discussions between the countries (27 ITR 1886; 12/9/10).

A side letter in the FTA discussions lengthens the period under which it must link a generic drug to a patent approval list (27 ITR 1889; 12/9/10).

Panama:

A new Tax and Information Exchange Agreement (TIEA) was signed with the U.S. opening the path for the stalled US-Panama Free Trade Agreement (27 ITR 1853; 12/29/10).

Agriculture

U.S.:

The Agriculture Department proposes to remove the historical exemption which allows wood packing material to be imported from Canada without meeting the treatment and marking requirements applicable to other countries  (75 Fed. Reg. 75157), (27 ITR 1894; 12/9/10).

The Food Safety Modernization Act (S.510) was passed to overhaul the system for inspecting and regulating imported and domestic food  (27 ITR 1835;12/29/10).

Environment

U.S.:

The Environmental Protection Agency (EPA) drafted a rule to clarify, restructure, and add specifics to existing labeling regulations for export of unregistered pesticides (27 ITR 1922; 12/16/10).

Russia:

A new customs law governing imports, exports and county or origin marking was signed by the President (27 iTR 1925; 12/16/11).

Export Controls

U.S.:

The Bureau of Industry and Security (BIS) of the Commerce Department proposes a rule to establish an electronic system for registration and license applications under the Export Administration Regulations (EAR) [75 Fed.Reg.71376;( 27 ITR 1872)].

Expropriation

NAFTA

U.S.:

A U.S. company, Malbaie River Outfitters, filed a Chapter 11 complaint against Canada for $8 million (USD) for revoking its authorization to conduct commerce on various rivers alleging an unlawful taking under the treaty (NAFTA) without due process (27 ITR 1894; 12/9/10).

Trade Policy

U.S.:

The Omnibus Trade Act of 2010 (H.R. 6517 was approved to extend trade adjustment assistance.

General Jurisdiction Over Foreign Defendant

U.S.:

The North Carolina Court of Appeals exercised general jurisdiction over Goodyear Tires (Turkey) as a result of an accident outside of Paris killing a North Carolina teenager on the grounds the defendant "knew or should have known" their tires were sold in the state  using a "stream of commerce" theory as the basis to subject the defendant to the court's jurisdiction thereby representing a departure from prior standards of due process that claims must arise out of or be related to the company's activities in the state for the court to exercise general jurisdiction (Goodyear Luxembourg Tires, S.A. v. Brown, U.S. No.10-76; 27 ITR 1857; 12/2/10).

Sanctions

Dubai:

The United Arab Emirates (UAE) has banned 41 international and domestic companies from trading with Iran because the goods may have possible "military application" (27 ITR 1860; 12/2/10).

Memorandum Issued on EB-5 Regional Center Proposals

The US Citizenship & Immigration Services (USCIS) issued a memorandum providing guidance on timing of EB-5 eligibility, procedures to be used when there is a material change relating to eligibility, Targeted Employment Area (TEA) determinations, approval of a new Form I-526 petition to change the focus of investment to a new capital investment project and new duties of Service Center Operations (87 IR  2337, 12-13-10).

Compliance with Export Trade Controls

The Non-Immigrant Visa Petition ( Form I-129) has been modified to required employer certification that the beneficiary has not violated the " deemed export" rule of the International Traffic in Arms Regulations ( ITAR) and Export Administration Regulations (EAR).  The technology and the technical data subject of the certification can be found on the Commerce Control List (CCL) and the US Munitions List  (USML) (87 IR 2296; 12-6-10).

H-1 B Visa Allocation Nearly Absorbed

As of January 5, 2011 the USCIS reported it had only 900 visas remaining in the allocation for the fiscal year ending September 30, 2011  (AILA Info Net doc. 10042368 January 4, 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; 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); Nishith Desai Associates FEMA Hotline(nda@ndalaw.com); LB- LehmanBrown China Business Insights International Accountants.