Quantum taps Cisco’s John Hurley as chief revenue officer ... Savings and investments app Acorns adds Rich Sullivan from Twitter as chief financial officer; Jasmine Lee, who previously had dual roles as chief operating officer and CFO, becomes exclusively COO ... Intel hires Christy Pambianchi from Verizon as executive vice president-chief people officer, effective Sept. 7 ... Dean Brenner leaving as Qualcomm senior vice president-spectrum strategy and tech policy, effective Dec. 2 ... Hard Rock International hires ex-Panama Jack CEO Kimberly Manna, also former Sony Pictures Entertainment, as senior vice president-retail and licensing.
The Information Technology Industry Council hailed the reprieve for U.S. importers from the threat of tariffs on goods from Vietnam. “ITI welcomes the U.S. government’s bilateral engagement -- rather than consideration of tariffs that harm U.S. competitiveness and jobs -- to address concerns with Vietnam’s currency valuation practices,” emailed Senior Policy Director Sam Rizzo Monday. The agreement the U.S. Treasury reached last week with the State Bank of Vietnam to address U.S. allegations that Hanoi was devaluing the dong against the dollar was a “satisfactory resolution” of the investigation launched in October, the Office of the U.S. Trade Representative said Friday. Vietnam plays a large and growing role in the consumer tech supply chain.
The House Appropriations Committee advanced increased CPB funding Thursday along party lines. The committee was considering legislation early Thursday evening that would boost NTIA, Patent and Trademark Office and other Commerce Department agencies' appropriations. The committee advanced its FY 2022 Department of Homeland Security funding bill earlier this week, which included $2.13 billion for the Cybersecurity and Infrastructure Security Agency (see 2107130056).
Veeam Software data protection provider starts federal government-focused Veeam Government Solutions, hires Earl Matthews, ex-Army and White House, as president to "develop and lead" VGS; names to board Nick Ayers, managing partner of Ayers Neugebauer, Matthews and Gil Vega, Veeam chief information security officer ... NATE appoints Kathy Stieler, ex-ERI Installations, as director-safety, health and compliance, a new post.
The global semiconductor shortage “continues to negatively impact U.S. workers and consumers and is a persistent headwind to the U.S. economic outlook,” said the 100-day supply chain review published Tuesday by the White House in answer to President Joe Biden’s call for the report in his Feb. 24 executive order. The Commerce Department’s assessment took center stage in the 250-page report. The Energy, Defense and Health and Human Services departments also weighed in.
The Office of the U.S. Trade Representative concluded its one-year Section 301 investigation into the digital services tax policies of Austria, India, Italy, Spain, Turkey and U.K. by imposing and immediately suspending remedial tariffs against those countries, said the agency Wednesday. Putting the tariffs on hold for up to 180 days will give more time to complete the ongoing multilateral negotiations on international taxation at the Organisation for Economic Co-operation and Development and through the G20 process, it said. The U.S. “remains committed to reaching a consensus on international tax issues through the OECD and G20 processes,” said USTR Katherine Tai. “Today’s actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future.” DSTs "undercut significant activity in multilateral negotiations and further fragment the international tax system,” said Information Technology Industry Council CEO Jason Oxman. ITI encourages all governments to "quickly withdraw" DSTs "and double down on their work to realize a multilateral, consensus-based agreement" through the OECD and G20, he said. The Computer & Communications Industry Association “welcomes USTR’s actions in the Section 301 investigations that show the continued commitment of the U.S. to the ongoing negotiations, while making clear that tariffs remain an option if discriminatory taxes continue,” said Policy Counsel Rachael Stelly.
The Senate voted 68-30 Thursday to end debate on a substitute amendment for the Endless Frontier Act (S.1260) (see 2105130069), moving one step closer to final passage. Senators agreed to a defense spending amendment and appeared to be nearing agreement on a trade policy provision in a package that could far exceed the original $100 billion.
Trade groups whose members would pay foreign digital services taxes and those whose members would have to pay if tariffs are hiked up to 25% on products from the countries imposing DSTs agree the levies are wrong and government should use full persuasive power to convince countries like India, the U.K. and Spain not to impose these taxes. Tech groups split on whether tariffs are the right tool to convince countries to roll back or never pass DSTs. The Computer & Communications Industry Association gave the most direct support of levying tariffs on DST countries. In testimony at a virtual Office of the U.S. Trade Representative hearing Monday, CCIA Policy Counsel Rachael Stelly said USTR should work for a global international taxes solution and impose tariffs “to deter countries and send a strong message. CCIA "takes seriously the impact that tariffs can have," she said. "Tariffs should only be used in limited circumstances, in a targeted manner, and where there is a clear strategy in place designed to change the behavior of a trading partner. USTR’s proposed action appears to meet this standard.” Internet Association Director-Trade Policy Jordan Haas said IA has no position on the proposed retaliatory tariffs and hopes duties will never be levied because ideally, countries will roll back DST laws. He's concerned more countries are thinking of imposing such taxes. The App Association opposed tariffs, concerned targeted countries could retaliate and its small company members would be hurt. Representatives from the Retail Industry Leaders Association, National Retail Federation and others spoke against the tariffs.
Communications Decency Act Section 230 and similar language shouldn’t be included in trade agreements, House Commerce Committee Chairman Frank Pallone, D-N.J., and ranking member Cathy McMorris Rodgers, R-Wash., wrote U.S. Trade Representative Katherine Tai Monday. It would be “inappropriate” to export such language with ongoing policy discussions about Section 230, they wrote: “Given that our Committee closely oversees Section 230 and all portions of the Telecommunications Act of 1996, we also hope the Office of the United States Trade Representative will consult our Committee in the future in advance of negotiating on these issues.” Pallone wrote a similar letter to the Donald Trump administration with then-ranking member Greg Walden, R-Ore. (see 1908060064).
Digital services taxes drove countries back to the negotiating table on international tax harmonization, and now it may be hard to roll back such DSTs, experts said. Many tech and other stakeholders oppose other countries' digital taxes. The U.S. was driven to talks again because so many countries were considering taxing revenue, rather than profit, of digital giants like Facebook and Google, Deloitte Managing Partner Bob Stack told a Washington International Trade Association webinar Thursday. "Countries need to commit to get rid of these DSTs. That's the deal to be had." Noting a U.S. proposal for Organization of Economic Coordination and Development member-countries to drop such levies, Miller & Chevalier's Loren Ponds said "it’s a matter of everybody dropping their weapons at the same time" and "nobody wants to go first." Georgetown Law professor Lilian Faulhaber reminded that most DSTs haven't actually been imposed. "Part of that is probably because USTR pushed back so hard," she said of the Office of U.S. Trade Representative. USTR didn't comment Friday.