Deputy Secretary of State Kurt Campbell told a congressional panel Sept. 18 that he will look into the possibility of expanding the export control exemptions that the State Department intends to grant to Australia and the U.K. under the AUKUS security partnership.
Export enforcement officials from the U.S., Australia, Canada, New Zealand and the U.K. met in Washington this week, where they warned businesses about complying with export controls against Russia and committed to expanding joint investigations to penalize violators.
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European Commission President Ursula von der Leyen chose Maros Sefcovic as the bloc’s commissioner for trade and economic security, saying in a Sept. 17 mission letter that Sefcovic should help the EU take a “more assertive stance” on the use of sanctions and other economic statecraft tools, work to modernize the EU’s customs system, and push to finalize free trade deals.
The EU could soon see a sharp uptick in its use of defensive trade policy tools, especially if Donald Trump is elected the next U.S. president and follows through with his promise of a new global tariff (see 2409110015), at least one panelist said during a roundtable discussion on EU competitiveness.
After initially facing scrutiny for helping to facilitate Russia-related transactions, Cypriot banks have made significant progress in improving their compliance programs in recent months and are now adhering to all U.S. sanctions rules, the country’s top banking industry officials said this week. They also said they face hurdles implementing some of the sanctions, including potential legal challenges from customers.
The U.K. will officially launch a new agency Oct. 10 to oversee civil enforcement of certain sanctions and trade restrictions for controlled goods and services moving or being provided outside the U.K. The new Office of Trade Sanctions Implementation, first unveiled last year (see 2312110016), will investigate and impose fines on U.K. sanctions violators and introduce new reporting requirements for businesses, potentially to include information about their due diligence practices.
Congress should consider encouraging greater use of export controls and sanctions to counter a recent surge in the repression of political dissent abroad, hearing witnesses told the Senate Foreign Relations Committee last week.
The next U.S. presidential administration will face a host of emerging technology issues in international trade, including advanced computing chips, artificial intelligence, cloud computing, data centers, quantum and telecommunications infrastructure, said Nazak Nikakhtar, a Wiley Rein partner and a former acting Bureau of Industry and Security undersecretary.
A new final rule issued by the Bureau of Industry and Security this week will codify a host of updates the agency made to its administrative enforcement policies over the past three years, including measures to help BIS more quickly resolve minor voluntary disclosures and increase penalties on exporters who choose not to report serious violations. Other changes will give BIS broader discretion to impose higher fines, including by eliminating language that had capped maximum base civil penalties for “non-egregious” violations.