Anniversary of Softwood Lumber Agreement Expiration Could Bring New Trade Case
Richard Lutz
October 12 marked the one-year anniversary of the expiration of the 2006 Softwood Lumber Agreement between the United States and Canada and the end of the trade litigation peace period. The U.S. industry is expected to request a new trade investigation against Canada targeting more than $5 billion of annual imports of softwood lumber used in housing construction. The most recent trade data for the first eight months of 2016 reflect a 32 percent increase in import volume compared to the same 2015 period. The 2016 trade data also report a 10 percent price decrease for the main softwood lumber product category accounting for 72 percent of all Canadian exports. The new trade action would be the fifth time that the U.S. industry has pursued a trade investigation against Canada. The latest round of litigation is expected to be resolved by a new softwood lumber agreement. Negotiations earlier this year established a framework for resolving the dispute by limiting Canadian exports to no more than a specified portion of the U.S. market.
Hundreds of Companies Self-Certifying Under Privacy Shield
Trey Jefferson and Betre Gizaw
Data protection is an issue of particular salience as of late, especially data flowing across international waters. The European Union-United States Privacy Shield seeks to preserve the privacy rights of consumers engaging in global commerce through best practices and protocol. The Privacy Shield framework relies upon voluntary compliance by participating organizations. Since its introduction in August of this year, certification among domestic firms has been on the rise. The Department of Commerce welcomed its 500th company in October and has every reason to believe this growth will continue. Over 1,500 companies have petitioned for certification. Acting Assistant Secretary of Commerce for Industry and Analysis Ted Dean noted, “the pace of the Privacy Shield program’s growth is a testament to the critical need for this data transfer mechanism, which underpins almost $300 billion in digitally deliverable services traded across the Atlantic each year.” For additional information on the development of the Privacy Shield, please refer to our previous coverage from April and August.
Modernizing American Manufacturing Bonds Act Introduced
William Clarkson
On October 7, Senators Sherrod Brown (D-OH) and David Perdue (R-GA) joined Representatives Randy Hultgren (R-IL) and Richard Neal (D-MA) in announcing the introduction of the Modernizing American Manufacturing Bonds Act (MAMBA) (S. 3416/ H.R. 2890), legislation aimed at expanding access to Qualified Small Issue Manufacturing Bonds. Key provisions include (1) expanding the definition of “manufacturing facility” to include facilities used in the creation or production of intangible property, as well as facilities that are directly related and ancillary to a manufacturing facility; (2) increasing the existing maximum bond limitation on Qualified Small Issue Manufacturing Bonds from $10 million to $30 million; and (3) increasing the existing capital expenditure limitation on Qualified Small Issue Manufacturing Bonds from $20 million to $40 million. Both House and Senate versions have been referred to their respective committees of jurisdiction, where they await further consideration.
