RigNet taps Jamie Barnett, from Venable, as senior vice president-government services ... Wiley Rein promotes as partners-telecom, media and technology Edgar Class and Ari Meltzer ... Lewis Brisbois hires Rich Goldberg, ex-DOJ, as partner-data privacy and cybersecurity ... Wireless Infrastructure Association names Kate Forscey, ex-Office of Rep. Anna Eshoo, D-Calif., director-legislative affairs ... Sam Rizzo, ex-Office of U.S. Trade Representative, joins Information Technology Industry Council as director-policy, focusing on trade issues.
Apple shares closed down 10 percent Thursday at $142.19 and tech suppliers fell after its rare warning about quarterly results drew tech tariff concerns. CEO Tim Cook cut sales guidance after U.S. markets closed Wednesday to $84 billion for the quarter ended Dec. 29 vs. the $89 billion-$93 billion from November's earnings call (see 1811020043). That's a drop from the year-ago period.
Despite partial government shutdown, the Office of the U.S. Trade Representative continues “to conduct all operations,” including trade negotiations and enforcement activities, “using existing funds,” said the agency Friday. USTR Robert Lighthizer is the lead negotiator in talks with China on a comprehensive trade package that forestalled the imposition of 25 percent Trade Act Section 301 tariffs on the third tranche of Chinese imports, at least until March 2 (see 1812140045). “Big progress” is being made in the U.S.-China trade negotiations, tweeted President Donald Trump Saturday. “Just had a long and very good call with President Xi of China,” said Trump. “Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute.”
The FCC will continue to make key systems available to the public, even as staff are sent home starting mid-day Thursday, said a detailed announcement (see 1901020043). Many, including staff, feared systems would be taken offline as they were in 2013 (see 1812280021). Staff held an all-hands meeting Wednesday afternoon to be briefed on the details before release of the public notice, agency and industry officials said.
The Office of the U.S Trade Representative issued its first list of product exclusions from the 25 percent Trade Act Section 301 tariffs on Chinese imports, granting full or partial exemptions for nearly two dozen 10-digit Harmonized Tariff Schedule subheadings, said a notice posted Friday at the agency’s website. The exclusions apply retroactively to July 6, the date the first tranche of tariffs took effect, and will remain in effect until one year after the USTR’s notice is published in the Federal Register.
The three rounds of Trade Act Section 301 tariffs imposed since July on $250 billion worth of Chinese goods are costing the tech industry more than $1 billion a month in added fees, reported CTA Friday. CTA released its estimates as the Trump administration officially delayed to March 2 its plan to raise the third tranche of 10 percent tariffs to 25 percent.
A new U.S.-Japan trade agreement should “promote innovation” and U.S. "competitiveness," so it should include “a robust chapter” on digital trade modeled after the text of the U.S.-Mexico-Canada trade deal, testified Charles Freeman, U.S. Chamber of Commerce senior vice president-Asia, Monday at an Office of the U.S. Trade Representative hearing on U.S. negotiating objectives for a free-trade agreement with Japan (see 1811270002). The digital economy “is growing at almost two and a half times faster than the global economy, and trade in digital goods is growing more rapidly than trade in traditional manufactured goods and agricultural products,” said Freeman. Negotiations with Japan are “a real opportunity to set the highest global standard” intellectual property “creativity and innovation,” he said. “Both countries should take this opportunity to advance a model approach to sustainable access to innovation and creativity by promoting respect for property rights and a return of fair value for innovation.” Along similar lines on negotiating objectives for a potential U.S.-EU pact, the Computer & Communications Industry Association wants the USTR to “seek a holistic trade agreement with the EU to reduce barriers and encourage investment across the economy,” it commented Monday in docket USTR-2018-0035. The USTR is “strongly encouraged” to make digital trade a “priority in these negotiations with the EU,” said CCIA. “Failure to do so would be a significant missed opportunity.” Commitments to digital trade in a U.S.-EU agreement “will be important in ensuring continued EU market access for innovative American firms and in establishing a model elsewhere in the world,” said the Software & Information Industry Association. Though the EU’s position is that privacy can’t be subject to a trade negotiation, the U.S. “should nonetheless strive to come to an agreement providing for a positive cross-border data flow commitment,” it said. The U.S. “should also push back against a highly likely EU request for a cultural carve-out,” it said. There also should be an effort “to establish closer U.S.-EU cooperation on both digital and intellectual property rights issues vis a vis third countries,” it said. A hearing on U.S.-EU negotiating objectives is set for Friday. Comments in the docket were due midnight Monday.
The White House will follow up Thursday’s tech executive meeting (see 1811300036) with additional tech-related gatherings, administration officials said during a news-media call speaking on condition they not be identified. Asked if Amazon, Apple and Facebook were invited Thursday, an official said she believed everyone who was invited attended. Apple CEO Tim Cook was floated as a potential participant for future meetings. Apple and Amazon didn’t comment. Facebook wasn't invited Thursday, a spokesperson said. Thursday’s attendees were said to have included Google CEO Sundar Pichai, Microsoft CEO Satya Nadella, IBM CEO Ginni Rometty, Qualcomm CEO Steve Mollenkopf, Oracle CEO Safra Catz, Massachusetts Institute of Technology President Rafael Reif, Carnegie Mellon University President Farnam Jahanian, Blackstone Group CEO Stephen Schwarzman and former Secretary of State Henry Kissinger. Administration participants included White House Deputy Chief of Staff-Policy Coordination Chris Liddell, Deputy U.S. Chief Technology Officer Michael Kratsios, U.S. Trade Representative Robert Lighthizer, National Economic Council Director Larry Kudlow, National Economic Council Deputy Director-Economic Policy Shahira Knight and advisers Jared Kushner, Ivanka Trump and Kevin Hassett. The meeting was to have focused on artificial intelligence, 5G and quantum computing.
Any U.S.-Japan trade agreement should “prohibit” customs duties on digital products and electronic transmissions, commented the Information Technology Industry Council in docket USTR-2018-0034. The Office of the U.S. Trade Representative sought feedback to help shape the Trump administration’s negotiating posture (see 1811270002). It’s “tempting” for governments to consider levying duties or other “blanket fees” on digital goods and services, said ITI. Banning those “unnecessary” costs will eliminate burdens on digital trade and “serve as a vital model for future U.S. trade agreements" everywhere, it said. ITI wants the USTR to use negotiations with Japan to promote joint "cybersecurity cooperation efforts,” and “both countries should affirm that risk-based, consensus-driven, and interoperable cybersecurity approaches are more effective at combatting digital threats than prescriptive, mandatory, and sometimes conflicting regulatory regimes that are emerging" worldwide. ITI also urges the USTR to seek commitments from Japan to allow into the country for testing and demo purposes tech devices that don't yet have regulatory authorization, it said. "Currently, Japan does not allow for the importation of any devices that do not hold regulatory authorizations for these purposes. Adoption of measures similar to FCC provisions allowing imports of products for testing or demonstration will give U.S. firms equal opportunities in Japan’s market."
Digital trade is a “significant competitive advantage for the U.S. economy,” and the Trump administration should view any U.S.-Japan free-trade agreement as an “important opportunity to expand commitments to the free flow of data,” commented IBM in docket USTR-2018-0034. The Office of the U.S. Trade Representative sought feedback to help shape the administration’s negotiating posture in future trade talks with Japan (see 1811260011).