Potato industry groups and lawmakers applauded a ruling this week by Mexico’s Supreme Court that reversed a ban on potato imports from the U.S. (see 2102220022), clearing the way for more potato trade between the two countries. The ban stemmed from a 2017 lower court ruling siding with a Mexican potato cartel that argued the government had no authority to allow the imports.
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As U.S.-China technology competition grows, Congress may consider mandating stronger export controls over U.S. research and semiconductor equipment, the Congressional Research Service said in a report this month. Congress might consider “assessing” whether Chinese efforts to target U.S. research and development capabilities “merits additional government oversight and controls over U.S. basic and applied research,” the report said. Congress might also consider more restrictions over “technical expertise that U.S. industry shares with China over open source technology platforms” and more controls over exports of semiconductor equipment, tools and software. The Commerce Department is reviewing candidate controls for its emerging and foundational technology process (see 2103190037) and has received pushback from universities that are concerned those controls could restrict fundamental research (see 2012020044).
Semiconductor industry officials are preparing to push for export control modernization over certain electronics on the Commerce Control List, which they say will help controls avoid unintended consequences on U.S. companies and more accurately reflect national security concerns. The effort, led by the Semiconductor Industry Association, will look to convince the Bureau of Industry and Security to update certain control parameters and definitions, and make technical changes in Category 3 of the CCL, which officials view as out of date.
The Justice Department hasn’t yet begun prosecuting cases involving violations of the Commerce’s Department's newly issued end-user restrictions but expects that to soon become a significant part of the agency’s focus, a senior Department of Justice official said.
The Export-Import Bank of the U.S. is seeking comments on how it can best implement its “Program on China and Transformational Exports,” which authorizes Ex-Im support for certain export transactions containing a U.S content level of 51% or more and makes exports with Chinese content “presumptively ineligible” for financing. The bank specifically seeks comments on the level of U.S. and foreign content in certain “identified transformational export areas” to help it better support exporters “competing” with China, an April 23 notice said. Those export areas include emerging technologies such as artificial intelligence, biotechnology, quantum computing and semiconductor manufacturing. Comments are due May 14.
Clete Willems, a former Donald Trump administration trade staffer, told the Senate Finance Committee that technology sales to China help pay for research and development here, so as Congress considers how to bolster the semiconductor industry, it should also be sure not to put export controls on goods that are not sensitive.
The Commerce Department is open to establishing a national export strategy to help increase foreign market access for U.S. manufacturers, farmers, carmakers and other industries, Commerce Secretary Gina Raimondo said. Commerce, she said, has noticed a trend of “declining exports,” particularly for smaller companies, and wants to provide more support for U.S. exporters alongside efforts to boost domestic manufacturing in semiconductors and other critical goods (see 2103110047).
More than 15 former U.S. national security officials urged the Biden administration to support and fund legislation aimed at aiding the semiconductor industry and boosting U.S. competitiveness toward China. The April 13 letter, signed by former CIA directors, national security advisers and Defense Department officials, endorsed the Endless Frontier Act (see 2104140051) and the recently enacted Creating Helpful Incentives to Produce Semiconductors for America Act (see 2006110038), saying they will help build an “offensive strategy” to counter China and support innovation in critical technologies.
Export Compliance Daily is providing readers with the top stories for April 12-16 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
Sen. Chris Van Hollen, D-Md., and Sen. Roy Blunt, R-Mo., are promoting a bill they say should guide government investments in advanced manufacturing or industrial research, and should be a companion to the Endless Frontier Act. The National Strategy to Ensure American Leadership (SEAL) Act would ask the National Academies of Science, Engineering and Medicine to identify which technologies will be the critical ones in the next five to 10 years, where if the U.S. is not a strong player, it could hurt the economy.