INTERNATIONAL TRADE & BREXIT...Iran: Expanded Sanctions •Further sanctions against Iranian...
Transcript of INTERNATIONAL TRADE & BREXIT...Iran: Expanded Sanctions •Further sanctions against Iranian...
INTERNATIONAL TRADE & BREXITChris Bryant, LondonMegan Barnhill, Washington DC
BREXITChris Bryant, London
Overview• How we got where we are• Election outcomes & what they mean for Brexit• What it means for the US/UK relationship
How we got here (1)January 2020
How we got here (2)
Commons motionUnder EU (Withdrawal) Act 2018
Withdrawal Agreement Bill
Lords debate Up to 5 sitting days
How we got here (3)European CouncilQualified Majority
European ParliamentSimple majority
How we got here (4)
Stalemate!
And here we are…
General Election
-v-
BUT
Potential outcomes
majority majority
324 seats (approx*)
Hung Parliament(no overall majority)
minority
OR
minority
+ others
OR
What does it mean for Brexit? (1)
Withdrawal Agreement approved
Conservative Majority
BREXIT
31 Jan 2020
END OF TRANSITION
31 Dec 2020
?Transition Period
Extension Decision
Date
1 July 2020
What does it mean for Brexit? (2)Labour Minority Government
RenegotiateWithdrawal Agreement
REFERENDUM
Leave(on terms of Withdrawal Agreement)
Remain(revoke Art. 50)N.B. Will require further
extension from EU
US/UK Trade Deal? (1)
? ?
• Alignment with standards• “Level Playing Field”• Protected Designations of Origin
US/UK Trade Deal? (2)
Other Contentious Issues• Drug pricing / patents• Healthcare services / NHS• Investor State Dispute Settlement• Big Tech / Data
US SANCTIONS, EXPORT CONTROLS
IN 2019
Megan Barnhill, Washington, DC
Year In Review• Implemented withdrawal from JCPOA and expansion of sanctions
against Iran• Continued focus on Russia• Expansion of sanctions against Venezuela• Syria, North Korea programs continue apace, including new
designations• Further restrictions on certain authorizations related to Cuba• New sanctions related to Nicaragua, Mali• Revised Reporting, Procedures and Penalties Regulations• Issuance of “Framework for OFAC Compliance Commitments”• Addition of Huawei to Entity List and Issuance of General License
Iran: US Withdrawal from JCPOA• Implementation of US withdrawal from Joint Comprehensive Plan of Action (JCPOA)• May 8, 2018: Pres Trump announces US withdrawal
from JCPOA• Wind down periods expired on August 6 and November
4, 2018. • Removal of EO 13599 List; persons on the list moved to
SDN List • Iranian Transactions and Sanctions Regulations (ITSR)
updated
Iran: Expanded Sanctions• Further sanctions against Iranian government
• April 15, 2019: IRGC designated as Foreign Terrorist Organization
• June 24, 2019: EO 13876 –Supreme Leader of Iran and the Iranian Supreme Leader’s Office blocked, additional designation criteria
• Additional secondary sanctions triggers• May 8, 2019: EO 13871 – secondary sanctions related to
Iran’s iron, steel, aluminum, and copper sectors• Attention warranted for civil aviation, shipping sectors• Over 150 new SDN designations in 2019, including
designations of non-Iranian entities involved in certain transactions involving Iran
Russia• Sanctions under Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act) • August 2018: Determination by US State Dept of use of
chemical weapons by Russia • August 1, 2019: EO 13883 and subsequent OFAC
Russia-Related Directive • August 26, 2019: Additional State Dept sanctions
• Over 75 new designations since July 2018• Under Russia/Ukraine, Magnitsky, Cyber, and Election
Interference sanctions programs
Venezuela• Expanded restrictions applicable to Maduro regime and
associated persons• November 11, 2018: EO 13850 – sanctions on gold sector, corrupt
actors• January 25, 2019: EO 13857 - updated definition of “Government of
Venezuela”• August 5, 2019: EO 13884 - Government of Venezuela is blocked
• Over 100 individuals and entities added to the SDN List under the Venezuela program, along with a number of vessels
• Sanctions are not comprehensive (i.e., no embargo)• A number of general licenses exist that authorize certain
types of activities with specified persons
Reporting, Procedures and Penalties Regulations• Interim final rule effective June 21, 2019. • Additional detail regarding information required in reports
of blocked property. • New form for annual reports of blocked property. • Expanded requirement for reporting rejected transactions.
• Reporting required for any U.S. person (or person subject to U.S. jurisdiction) that rejects a transaction where processing or engaging in the transaction would violate US sanctions.
• Transaction broadly defined - includes “transactions related to wire transfers, trade finance, securities, checks, foreign exchange, and goods or services.”
Framework for OFAC Compliance Commitments
• Published May 2019• Sets out 5 essential components of a compliance
program:• Management commitment• Risk assessment• Internal Controls• Testing and Auditing• Training
• Provides summary of some of the root causes of violations that OFAC has identified during its investigative process
Entity List Designations• May 16, 2019: Huawei Technologies Co., Ltd. and 68 of
its non-U.S. affiliates added to Entity List. • August 19, 2019: Additional 46 non-U.S. affiliates of
Huawei added to Entity List. • License required for the export, reexport, or transfer (in-
country) of any item subject to the EAR to any of the listed entities. Presumption of denial.
• Temporary General License authorizes certain transactions involving the export, reexport, or transfer of items subject to the EAR to the listed entities.• November 20, 2019: expiration date of TGL extended until
February 16, 2020.