A Florida couple were both sentenced to 57 months in prison for illegally importing and selling between $25 million and $65 million worth of plywood products in violation of the Lacey Act and customs laws. The defendants engaged in a sophisticated scheme to evade antidumping and countervailing duties owed on hardwood plywood products made in China by falsely declaring the species, country of origin or country of harvest of the wood from which the plywood was made.
French oilfield services giant SLB has applied for the Export Import Bank to extend a long-term loan guarantee in excess of $100 million to entities controlled by the investment arm of the in the Kingdom of Bahrain. The vote for this project comes after resignations from climate advisors who were shut out of project evaluations and deliberations. ExIm also failed to disclose the project funding amount, despite pressure from civil society and environmental groups.
Volkswagen said Tuesday that U.S. Customs had detained several thousand Bentley, Porsche and Audi vehicles at ports because the cars contained a part made by a Chinese supplier on a sanctions list for using forced labor in Xinjiang. The automaker describes the part's origin as a "sub-supplier," meaning a supplier to one of its suppliers—an entity far down the supply chain. Last year VW committed to conducting a supply chain audit for exposure to modern slavery.
The United States and Japan held the first round of government and stakeholder dialogues under the Task Force on the Promotion of Human Rights and International Labor Standards in Supply Chains. Established in January 2023, the Task Force aims to protect and promote human rights and internationally recognized labor rights in supply chains. Its activities include sharing information on respective trade policies, laws, guidelines, and, where appropriate, enforcement practices.
The United States and Mexico announced the successful resolution of the Rapid Response Labor Mechanism (RRM) matter at the Fujikura Automotive wire harness facility in Piedras Negras. A complaint alleged the firm was blacklisting workers from an American-owned trim plant shuttered in a prior RRM dispute. After the United States requested that the Government of Mexico review the matter, Mexico conducted an investigation and undertook multiple remediation steps to ensure workers’ rights are protected at the facility.
The United States today announced the successful resolution of the eighth USMCA facility-specific Rapid Response Labor Mechanism (RRM) petition regarding the facility operated by Goodyear-SLP, S. de R.L. de C.V. in the city and state of San Luis Potosí, where workers were previously denied their freedom of association and collective bargaining rights. In 2019 US lawmakers threatened to hold up ratification of the USMCA over pay and conditions at the plant. Reporting by Reuters at the time suggested wages at the facility are range from $2 to $6 an hour. By comparison Goodyear workers in the US reportedly receive a basic wage of $23 per hour.
The Department of Defense released an updated blacklist with more than a dozen new Chinese companies on it, including memory chip maker YMTC, artificial intelligence company Megvii, LiDAR maker Hesai Technology and tech company NetPosa. Section 1260H of the William M. (Mac) Thornberry NDAA for FY21 (Pub. L. 116–283) directs the Secretary of Defense to continue to list “Chinese military companies” (CMCs) annually until December 31, 2030.
A bipartisan group of lawmakers has urged the Federal Maritime Commission (FMC) to "work expeditiously" to initiate a rulemaking on shipping exchanges and "establish healthy and fair competition in the global shipping market." "If the U.S. does not approve a competitor, the CCP could obtain a monopoly, leading to a troubling outcome for American shippers and global commerce," the lawmakers write.
The Indo-Pacific Economic Framework for Prosperity (IPEF) Agreement Relating to Supply Chain Resilience, generally referred to as the Supply Chain Agreement, will enter into force on February 24, 2024. The focus in the coming months will turn to various milestones set out in the Agreement related to establishing three supply chain bodies – the Supply Chain Council, Crisis Response Network, and Labor Rights Advisory Board.
House Select Committee on China Chairman Mike Gallagher (R-Wisc) is continuing to put pressure on Ford Motor Company because of its partnership with China-based electric-vehicle battery maker Contemporary Amperex Technology Company Limited (CATL) to build a Michigan factory. Mr. Gallagher and House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-Wash) said their "cursory review" uncovered evidence that Ford plans to use technology and software from at least four Chinese companies that supply the same types of information technology tools to the Chinese military, North Korean government and China’s Ministry of Public Security.
Democratic lawmakers joined their republican colleagues in calling out the Biden Administration's efforts to declare the Socialist Republic of Vietnam a market economy. "We are especially concerned by reports that Commerce pledged to the government of Vietnam that your agency’s review will result in a favorable determination, to the detriment of U.S. industries and workers,"the Senators write.
The United States and Mexico today announced the successful resolution of the USMCA Rapid Response Labor Mechanism (RRM) matter at the Autoliv Steering Wheels Mexico facility in El Marqués in the state of Querétaro, Mexico, where workers were previously denied their freedom of association and collective bargaining rights. After the United States requested Mexico’s review of the matter, Mexico and the company took several actions to address violations of labor law, including reinstating dismissed workers and correcting other employer interference in union activities.
The leaders of the House Select Committee on China are questioning whether the US government is effectively enforcing a law aimed at keeping out of the US market products made in China by forced labor. Committee Chairman Mike Gallagher (R-Wisc) and ranking Democrat Raja Krishnamoorthi (Ill) have sent a letter to Department of Homeland Security Secretary Alejandro Mayorkas, calling for immediate action to strengthen enforcement of the Uyghur Forced Labor Prevention Act.
The Council of the European Union adopted a position on a regulation to ban products made with forced labor from the EU market. This mandate aims to combat forced labor, introducing improvements to the initial proposal. The proposal defines forced labor per International Labour Organization standards and requires authorities to assess risks from various sources, including civil society submissions and a forced labor risk database. If forced labor is suspected, investigations may be initiated, leading to product withdrawal and market/export bans.
Six U.S. Departments published a Supplemental Advisory, reminding businesses and individuals of the compliance and reputational risks associated with trading with the military regime in Rangoon. While North American companies continue to engage in Burmese extractive industries, the growing ring of sanctions means firms in the Rare Earths, Timber and Precious Metals trade run an increasing risk of negative legal, financial, or reputational consequences.
Under Secretary of State for Economic Growth, Energy, and the Environment Jose W. Fernandez met with Vietnamese Prime Minister Pham Minh Chinh in Hanoi on January 25, 2024. In their meeting, Under Secretary Fernandez "reaffirmed the United States as an enduring partner" and expressed support for the rapid development of Vietnam’s semiconductor ecosystem as part of the U.S.-Vietnam Comprehensive Strategic Partnership. This effort includes cooperation to launch workforce development initiatives. "The US will work with Việt Nam in supporting Vietnamese schools to have over 50,000 engineers in this field in the next few years. That's important for Việt Nam's development of a semiconductor industry," Mr. Fernandez stated.
The United States has asked Mexico to review whether workers at the Atento Servicios, S.A. de C.V. facilities in the city of Pachuca, state of Hidalgo, are being denied the right to freedom of association and collective bargaining. Both Atento locations in Pachuca offer call center services to BBVA Mexico, a subsidiary of the Spanish bank BBVA Group. The request marks the nineteenth time the United States has formally invoked the Rapid Response Labor Mechanism (RRM) in the United States-Mexico-Canada Agreement (USMCA) and the first time the United States has done so in the telecommunications sector.
In a letter addressed to the Swiss company ASEA Brown Boveri Ltd. (ABB), a group of House Republican lawmakers requested public testimony from its U.S. Country Holding Officer, Michael Gray, regarding the company’s relationship with the Chinese state-owned enterprise, Shanghai Zhenhua Heavy Industries Company Limited (ZPMC).
Commerce’s Bureau of Industry and Security (BIS) is conducting a comprehensive assessment of the use of mature-node semiconductor devices (legacy chips) in the supply chains that support—directly or indirectly—U.S. national security and critical infrastructure.
The US Export-Import Bank signed a memorandum of understanding yesterday with the Saudi Export-Import Bank to facilitate the financing of US exports to the Kingdom of Saudi Arabia. The MOU will encourage collaboration between the two export credit agencies as well as support exports in a variety of sectors, including climate and energy security, critical minerals projects, infrastructure, transportation and digital technology.