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USITC Notices

Scheduling of AD/CV Injury Investigations of Glass Containers. The USITC has released the schedule for its AD and CV injury investigations of glass containers from mainland China. Return questionnaires are due to the USITC by 9 October, a conference will be held on 16 October, post-conference briefs may be submitted by 21 October, and the USITC’s preliminary determination vote has been scheduled for 8 November.

Agricultural Trade Impact of Pesticide Residue Levels Subject of USITC Probe. The USITC has initiated an investigation into the global economic impact of maximum residue level policies for pesticides. In requesting this investigation USTR indicated that MRLs, particularly those that are missing or low, can serve as barriers to U.S. agricultural exports. The USITC states that its reports in this investigation (due 30 April 2020 and 2 November 2020) will include information on the following:

  • the role of plant protection products and their MRLs in relation to global production, international trade and food safety for consumers;
  • the approaches taken in setting national and international MRLs for crops (e.g., risk-based approach vs. hazard-based approach);
  • how MRLs are developed and administered in major markets for U.S. agricultural exports;
  • challenges and concerns faced by exporting countries in meeting importing country MRLs;
  • the costs and effects of MRL compliance and non-compliance for producers;
  • how missing and low MRLs affect countries representing a range of income classifications, particularly low-income countries, with regard to production, exports, farmer income and prices; and
  • how missing and low MRLs affect production, exports, farmer income and prices, both on the national level and, to the extent possible, for small and medium-sized farms.

The USITC will hold a hearing in connection with this investigation on 29 October. Pre-hearing briefs and statements are due by 21 October and post-hearing briefs are due by 5 November. All other written submissions are due by 13 December for the first report and 5 June for the second report.

USITC Report Finds Services Imports and Exports Continue to Increase. The United States remains the world’s largest services market and continued to be the world’s leading exporter and importer of services in 2017, according to the USITC’s latest annual report on trends in U.S. services trade. This year’s report focuses on distribution services and includes chapters on logistics services, maritime transport services and retail services that analyse global market conditions in each industry, examine recent trade performance and summarise the industry’s outlook. Highlights of this year’s report, which describes trade in services via cross-border transactions through 2017 and via affiliate sales through 2016, include the following.

  • In 2017 the value of U.S. commercial services exports was US$778.4 billion (15 percent of the global total, and up 6.1 percent from 2016), while imports totalled US$520.4 billion (10 percent of the global total, and up 7.7 percent from 2016).
  • Preliminary data indicate that U.S. services exports increased by 3.4 percent to US$805.7 billion in 2018 while imports rose by 4.3 percent to US$544.3 billion.
  • The United Kingdom was the largest U.S. services trade partner in 2017 in terms of both imports and exports. The other top export markets were Canada, mainland China, Ireland and Japan, while the top import sources were Germany, Japan, Canada and India.
  • Sales of services by foreign affiliates of U.S. firms – the leading channel by which many U.S. services are delivered to foreign markets – totalled US$1.4 trillion in 2016 (no change) while the value of services purchased from foreign-owned affiliates in the United States totalled $876.9 billion (down 7.9 percent).
  • Distribution services accounted for six percent of U.S. cross-border services exports and 12 percent of imports in 2017.
  • Distribution services accounted for about 29 percent of total sales by foreign affiliates of U.S. firms and 30 percent of total purchases from foreign-owned firms in the United States.
  • The contribution of private sector distribution services to U.S. gross domestic product was US$2.7 trillion in 2017, accounting for 17 percent of U.S. private sector GDP. From 2016 to 2017 distribution services grew by 3.2 percent, faster than the 2.1 percent growth rate experienced by private sector GDP as a whole.
  • Wholesale trade was the largest category of distribution services, accounting for 41 percent of the sector’s contribution to U.S. private sector GDP, followed by retail trade (39 percent). From 2016 to 2017, GDP in wholesale trade grew by roughly two percent while retail trade and transportation and warehousing each grew by four percent.

Scheduling of Full Sunset Review of AD Duty Order on Graphite Electrodes. The USITC has scheduled the full sunset review of the AD duty order on small diameter graphite electrodes from mainland China. The pre-hearing staff report will be placed in the non-public record on 7 January 2020 and a public version will be issued thereafter; pre-hearing briefs are due by 14 January; requests to appear at the hearing are due by 15 January; the pre-hearing conference will be held on 22 January; the hearing will take place on 23 January; post-hearing briefs are due by 31 January; and final comments are due by 28 February.

Initiation of Sunset Reviews of AD Duty Order on MSG and CV Duty Order on Isocyanurates. The USITC has initiated separate sunset reviews of the AD duty order on monosodium glutamate and the CV duty order on chlorinated isocyanurates from mainland China. The reviews will seek to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury to a domestic industry within a reasonably foreseeable time. Interested parties must respond to the applicable notice of initiation by 31 October to be assured of consideration. Comments on the adequacy of these responses must be filed by 10 December. The USITC will then assess the adequacy of interested party responses to determine whether to conduct a full or expedited sunset review. As opposed to expedited reviews, full reviews include a public hearing and the issuance of questionnaires.

New IPR Probes of Semiconductor Devices. The USITC has initiated separate investigations to determine whether imports of certain semiconductor devices, products containing the same and components thereof from mainland China and one other source are violating Section 337 of the 1930 Tariff Act by reason of patent infringement. The complainant requests that after these investigations the USITC issue limited exclusion orders as well as cease and desist orders.

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