Members of Congress told the Federal Maritime Commission that they are hearing again and again about exporters being denied the opportunity to send their goods across the water, either directly, or with last-minute cancellations or unreasonable expectations on time to load, and so they asked why the FMC cannot solve these problems.

Although the U.S. will likely have to separate from China in certain technology sectors, Treasury Secretary Janet Yellen said she is concerned trade tensions could lead to a broader economic decoupling that could stymie technology innovation and damage the competitiveness of U.S. companies. “Our conflict with China could result in growing decoupling of technologies,” Yellen told the Senate Finance Committee June 16. “But I worry that if we are too broad in our policies in terms of how we approach this, we can lose the benefits that come from having globally integrated technology systems where advances in one country benefit countries worldwide.”

Republican lawmakers again threatened to remove export control responsibilities from the Commerce Department if it doesn’t move faster to issue restrictions over emerging and foundational technologies, doubling down on criticism levied at agency officials for months. The latest threat, sent in a June 15 letter to Commerce Secretary Gina Raimondo and signed by 10 Republican senators, highlights the tension between an agency that wants to avoid rushing into overbroad controls that could harm U.S. companies and lawmakers who say Commerce is neglecting a congressional mandate to restrict sensitive exports to China.

Export Compliance Daily is providing readers with the top stories for June 7-11 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.

The Biden administration emphasized how reaching an agreement to end a 17-year-dispute over government subsidies to both Airbus and Boeing does more than just lift tariffs for at least five years. They see the most significant plank of the agreement as the one in which European Union countries agree to prevent foreign investments in the aerospace sector that are done to acquire technology or know-how, and to counter investments by European aerospace companies in China or other countries that are done in response to incentives or because the investments are a condition to sell in that market.

Following reports that China is continuing to buy U.S.-made DNA equipment despite U.S. export restrictions, Rep. Michael McCaul, R-Texas, said the Bureau of Industry and Security needs to strengthen its controls.

The Commerce Department published its spring 2021 regulatory agenda for the Bureau of Industry and Security, including two new mentions of emerging technology rules and new export controls on certain camera systems.

Treasury Secretary Janet Yellen declined to say whether the Biden administration will continue its strong sanctions against Cuba and suggested the agency's Cuba program may be reworked. Yellen, speaking during a June 10 House Appropriations subcommittee hearing, said Treasury is reviewing its Cuba sanctions as part of a broad agencywide sanctions review begun earlier this year (see 2106070007 and 2105280004).

The Commerce Department is working with a police agency in rural Texas to help investigate illegally exported goods, an unorthodox relationship that has sparked concern among industry lawyers and led to disputed seizures.

Countries need to revise their foreign direct investment screening environments, which are contributing to a global drop in FDI, said Simon Evenett, a trade and economics professor at the University of St. Gallen. Evenett, who co-wrote a recent report arguing for a policy reset around FDI (see 2106030034), said a rise in screening tools is chilling investments and creating uncertainty over a range of industries.