FTZ’ine November 2023
October 31, 2023
FTZ’ine January 2024
January 4, 2024
Not Just Another Joe In Washington
The majorities in the House and Senate enjoy only the slimmest of margins.
So it is big news in Washington when a Representative or Senator in a competitive district announce they are retiring.
Especially when they announce they are retiring to run for President of the United States.
Senator Joe Manchin, Democrat of West Virgina, announced that he will retire when his term ends next year. He will almost certainly be replaced by a Republican, endangering the current Democratic majority in the Senate.
He has also signaled that he is considering an independent run for President, which would completely upend the dynamics of next year’s election. Your Nation’s Capital is on pins and needles waiting to hear his next move.
New Speaker of the House Mike Johnson averted a government shutdown, for now, but not without some pushing and shoving in the process. One ruffled Representative suggested that his brush with California Representative Speaker Kevin McCarthy be settled in the Congressional parking lot. Many were aghast that the normal decorum of the chamber would break down into a physical altercation.
But actually settling grudges with physical violence is not new to the halls of Congress. In fact, three Congressmen (yes, all men) have died by duels, the last one in 1838.
I guess that’s when they started using the parking lot.
Top Story: Is Congress Picking FTZs Over FTAs?
Since the collapse of its effort to join the Trans Pacific Partnership, the U.S. has looked for ways to support trade around the Pacific Rim to counter the influence of China in the region.
The Biden administration’s latest attempt to replace TPP, the Indo-Pacific Economic Framework for Prosperity (IPEF), may have come to a dead end with respect to the portion of the agreement that addresses trade however.
The framework’s partners include Australia, Indonesia, Japan, South Korea and Singapore and together account for 40 percent of the global economy. The President had been hoping to announce a trade agreement to show U.S. strength in the area before his November meeting with President Xi of China in San Francisco.
Those plans were scuttled by concerns from prominent Democrats about the lack of labor protection provisions in the IPEF agreement.
Senator Sherrod Brown, Democrat of Ohio, and Senator Ron Wyden of Oregon, who leads the Senate Finance Committee, expressed concern over the labor and environmental standards. In addition, lawmakers of both parties have criticized the administration for not closely consulting Congress during the negotiations.
United States Trade Representative Katherine Tai is leading the negotiations on the trade portion of the IPEF, and has pledged to include tough labor standards. Progress so far has been elusive in a U.S. environment where the labor lobby is strong and the election cycle near.
The Department of Commerce negotiated the supply chain, clean energy and decarbonization, and taxation and anticorruption portions of the agreement, which are now complete.
Senator Brown has gone so far to suggest that trade provisions be completely removed from the agreement. “As the administration works to finalize the Indo-Pacific Economic Framework, they should not include the trade pillar,” he said. “Any trade deal that does not include enforceable labor standards is unacceptable.”
Senator Wyden’s criticism of the effort was sharper. “It should not have taken this long for the administration to listen to our warnings,” he said. “Ambassador Tai must come home and work with Congress to find an agreement that will support American jobs and garner congressional support.”.
The administration is unlikely to want to invite any more of such criticism in an election year, which could indeed mean that any trade provisions in the IPEF will be sidelined until at least 2025.
Trade Tip: Join Us In Delaware On December 12th To Discuss FTZs
ISCM is excited to be a part of the "U.S. Foreign-Trade Zones and How They Work" program from the World Trade Center Delaware.
Be sure to join us on Tuesday, December 12, 2023 from 5:00 PM - 8:30 at the Wilmington University School of Law for a program covering:
• What a Foreign Trade Zone Is
• The Financial Benefits Of Using Them
• How The Program Works
• The Process For A Company To Operate In An FTZ
• Case Studies Of The Program In Action
Our very own Sean Lydon is pleased to be presenting this in-depth program with Scott Taylor of Sandler, Travis & Rosenberg, P.A.
Register here to join us, learn how this international trade program makes U.S. organizations more competitive internationally, and earn 3 CLE Credits.
See you there!
Stalemate
The leaders of the world’s two largest economies met earlier this month at Filoli Estate, about 25 miles south of San Francisco.
It was the first they had met in person in over a year. After handshakes and smiles, they sat down for talks that lasted more than two hours.
Writing on social media site X, President Biden said “I think it’s paramount that we understand each other clearly, leader to leader,” Biden wrote. “There are critical global challenges that demand our joint leadership. And today, we made real progress.”
“Planet Earth is big enough for the two countries to succeed,” Xi told Biden, but the talks were not all pleasantries.
In his meeting with President Biden, President Xi reiterated that he was determined to unify China with Taiwan.
“The US side should … stop arming Taiwan, and support China’s peaceful reunification,” Xi told Biden, according to China’s Foreign Ministry. “China will realize reunification, and this is unstoppable.”
During one of his press briefings, President Biden labelled Xi a ‘dictator’, prompting the Chinese Foreign Ministry to describe the comment as “extremely wrong.”
In the event, they reached an agreement to reopen military contacts that were cut after then-House of Representatives Speaker Nancy Pelosi visited Taiwan, a self-ruled island that Beijing claims as its own, in August 2022.
The talks also led to an agreement to cooperate on tackling the source of fentanyl, the highly addictive synthetic opioid that has become a leading cause of drug overdoses in the US.
Under the agreement, China will go directly after specific companies that produce the chemicals used to make the drug, a senior US official told reporters.
Trade Becomes A War Hostage
The U.S. Navy intervened to stop the hijacking of a commercial tanker carrying phosphoric acid in the Gulf of Aden near Somalia last week.
The would-be pirates were identified as Houthi rebels, whose pirate activities are normally centered in the Red Sea, closer to their base in Yemen.
Because the rebels were operating far from their base, the United States is investigating whether Iran may have sponsored the activity. The M/V Central Park iss a Liberian-flagged vessel of Zodiac Maritime. Zodiac Maritime is led by Eyal Ofer, an Israeli-born shipping magnate.
The Central Park had already been the taget of pirate activity just a few days earlier. Officials said it is not clear if the attackers were the same group that attempted to take the ship earlier.
The U.S.S. Mason, and other ships from a U.S.-led counter-piracy task force that operates off the coast of Somalia, responded to the scene after the crew reported they were under attack.
When the coalition vessels arrived at the Central Park, they demanded the release of the ship. Five armed people fled from the ship and attempted to flee in the small boat they had used to attack the cargo ship. The U.S.S. Mason pursued the attackers and forced them to surrender, the news release said.
Can Kicked . . . Into Next Year
In a 336-95 vote earlier this month, the House approved another stopgap spending measure to keep the government in operation into early next year.
209 Democrats joined 127 Republicans to approve the measure, which keeps the government funded at current levels into the new year, though on two different timelines.
Some government agencies are funded until Jan. 19, and other offices are funded until Feb. 2nd.
The tactic the new Speaker of the House used to gain passage, reaching out to Democrats, was similar to the move that cost Kevin McCarty the job. And not everyone was happy about it.
“Mike ought to know better,” said Rep. Chip Roy, Texas Republican and a member of the House Freedom Caucus, referring to the new speaker.
Some hard-line Republicans argued that the continuing resolution gave them none of the wins they had expected.
“We’re fighting. But you have to be wise about choosing the fights,” Johnson said. “You’ve got to fight fights that you can win, and we’re going to.”
For the bulk of the House Republican conference, though, the continuing resolution appeared favorable enough. Rep. Kay Granger, the GOP’s top appropriator, called the bill “reasonable,” saying “it buys us time to agree on a topline funding level and negotiate final bills with the Senate.”
We’ll see if the New Year indeed brings us a new budget.
Cyber Attack Impacts Australia Port Operations
One of Australia's prominent port operators, DP World Australia, was shut down after a cyberattack temporarily crippled its facilities.
The incident impacted container terminals in key locations, including Melbourne, Sydney, Brisbane, and Perth, disrupting operations over a weekend. DP World Australia manages approximately 40% of the country's import and export activities.
The perpetrators responsible for the cyberattack have not been identified. There have been a spate of high-profile cyber-attacks in 2023, from MGM to Boeing and, more recently, OpenAI.
FTZ Staff Activity
- FTZ Board Staff processed a Minor Boundary Modification (S-204-2023) in FTZ 272 on behalf of 5 Star Apparel, LLC, Allentown, PA on October 31, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-205-2023) in FTZ 127G on behalf of Trucast LLC, Newberry City, SC on October 31, 2023
- FTZ Board Staff processed a Termination (S-206-2023) in FTZ 46J on behalf of Valbruna Stainless, Inc., Woodlawn, OH on October 31, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-207-2023) in FTZ 32 on behalf of Triton Logistics, Inc., Hialeah, FL on November 1, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-208-2023) in FTZ 74 on behalf of BMW of North America, LLC, Sparrows Point, MD on November 1, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-209-2023) in FTZ 29V on behalf of AstraZeneca Pharmaceuticals, LP, Shepherdsville, KY on November 2, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-210-2023) in FTZ 202 on behalf of Kuehne + Nagel, Inc., Torrance, CA on November 2, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-211-2023) in FTZ 181 on behalf of bROK Products, LLC, Akron, OH on November 2, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-212-2023) in FTZ 1 on behalf of Clover II, New York, NY on November 7, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-213-2023) in FTZ 70 on behalf of Progressive Distribution Centers, Brownstown, MI on November 7, 2023
- FTZ Board Staff initiated a Subzone (S-214-2023) in FTZ 26X on behalf of Helena Industries, Cordele, GA on November 8, 2023
- FTZ Board Staff processed a processed a Termination (S-215-2023) in FTZ 99I on behalf of Bloom Energy Corporation, Newark, DE on November 8, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-216-2023) in FTZ 70 on behalf of Metro International Trade Services, LLC, River Rouge, MI on November 8, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-217-2023) in FTZ 193B on behalf of Hit Promotional Products, Inc., Spring Hill, FL on November 9, 2023
- FTZ Board Staff processed a Minor Boundary Modification (S-218-2023) in FTZ 57 on behalf of M&M Pax LLC, dba M&M Pacs Labs LLC, Mill Spring, NC on November 13, 2023
Foreign-Trade Zone Board Activity
- The Lummi Indian Business Council received authorization to reorganize Foreign-Trade Zone 128 under the Alternative Site Framework with a service area of all Lummi Nation Property. MORE
- Miami-Dade County received authorization to expand the Alternative Site Framework service area of Foreign-Trade Zone 281 to include all of Miami-Dade County, Florida MORE
- PR Five Vega Alta, LLC. submitted an application to operate its Vega Alta, Puerto Rico facilities as a subzone of FTZ 61. MORE
- Getinge Group Logistics Americas LLC received approval to expand Subzone 49W in Foreign-Trade Zone 49 in East Windsor, New Jersey. MORE
- Getinge Group Logistics Americas LLC received authorization of production activity for care products and kits within Foreign-Trade Zone 49W in Dayton & East Windsor, New Jersey. MORE
- Lely North America, Inc. received authorization of production activity for automated milking and feeding equipment within Foreign-Trade Zone 107E in Pella, Iowa. MORE
- Flemish Master Weavers received authorization of production activity with quantitative and time-based restrictions for machine-made woven area rugs within Foreign-Trade Zone 186A in Waterville, Maine. MORE
- AIAC International Pharma, LLC. submitted a notification of proposed production activity for pharmaceutical products within Foreign-Trade Zone 61D in Arecibo, Puerto Rico. MORE
- Helena Industries, LLC. submitted an application to operate its Cordele, Georgia facilities as a subzone of Foreign-Trade Zone 26. MORE
- The City of Socorro received approval to establish Foreign-Trade Zone 302 under the Alternative Site Framework in the City of Socorro, Texas. MORE
- M&M Labs LLC. submitted a notification of proposed production activity for packaging of nutritional supplements and skin care products within Foreign-Trade Zone 57 in Mill Spring, North Carolina. MORE
- Samsung Electronics America, Inc. received authorization of production activity for stylus for mobile phones and tablets within Foreign-Trade Zone 168D in Coppell, Texas. MORE
- KMP USA LLC submitted a notification of proposed production activity for automotive parts within Foreign-Trade Zone 84 in Katy, Texas. MORE
- KMP USA LLC submitted a notification of proposed production activity for automotive parts within Foreign-Trade Zone 32E in Doral, Florida. MORE
- Flextronics America, LLC received authorization of production activity for automatic data processing machines within Foreign-Trade Zone 183C in Austin, Texas. MORE
Not Just Another Joe In Washington:
The majorities in the House and Senate enjoy only the slimmest of margins.
So it is big news in Washington when a Representative or Senator in a competitive district announce they are retiring.
Especially when they announce they are retiring to run for President of the United States.
Senator Joe Manchin, Democrat of West Virgina, announced that he will retire when his term ends next year. He will almost certainly be replaced by a Republican, endangering the current Democratic majority in the Senate.
He has also signaled that he is considering an independent run for President, which would completely upend the dynamics of next year’s election. Your Nation’s Capital is on pins and needles waiting to hear his next move.
New Speaker of the House Mike Johnson averted a government shutdown, for now, but not without some pushing and shoving in the process. One ruffled Representative suggested that his brush with California Representative Speaker Kevin McCarthy be settled in the Congressional parking lot. Many were aghast that the normal decorum of the chamber would break down into a physical altercation.
But actually settling grudges with physical violence is not new to the halls of Congress. In fact, three Congressmen (yes, all men) have died by duels, the last one in 1838.
I guess that’s when they started using the parking lot.