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.