Kelley Drye & Warren LLP’s Post

⚖️ A Balancing Act: Chip Export Compliance and U.S. Industry Viability ⚖️ As an international trade law, I digest plenty of intricate compliance issues. A fascinating topic discussed recently by risk intelligence firm, Sayari, piqued my curiosity. Amidst the perpetual shifts of trade regulations, Chris Miller, a foremost expert on semiconductor technology policy, envisions a future where regulators may enforce GPS tracking on intricate chip manufacturing tools. At face value, this might seem like a straightforward solution to strengthen compliance around export controls, given the numerous handoffs in the supply chain. As Miller points out, even the most conscientious chip manufacturers can lose sight of the end destination of their product after multiple sales, inadvertently opening themselves up to legal liabilities. However, from a trade attorney perspective, this brings me to question: Are we tipping the scale too far towards over-regulation? We are at a crucial juncture where there's an increasing call to onshore the critical semiconductor industry in the U.S. Would adding layers of stringent export controls and compliance measures end up deterring this much-needed expansion? The balance here is not an easy one to strike. On one end, we want to ensure accountability and avoid potential misuse of chip manufacturing equipment. On the other, we need to keep the U.S. attractive as a viable base for semiconductor manufacturing growth. Miller's future vision, where technology and legal enforcement dovetail, certainly makes for captivating discussion. However, it's imperative that we remember to factor in the potential impact on industry growth and economic viability. Seeking to impose GPS tracking mandates could stifle even the most resilient industries, not to mention an industry that we are desperate to cultivate and expand within our borders. As we delve deeper into the debate, it may be time for us to shift our focus from imposing more compliance burdens to facilitating a conducive environment for onshoring this crucial industry. Further dialogue and collaboration will be key - between industry players, regulators, and policymakers - to ensure that our compliance efforts don't compromise our broader economic aims. This is a critical moment for U.S. industry. Let's make sure we get it right. #tradelaw #compliance #chipsact

In today's fast-paced market, competition protection law plays a vital role in creating a fair and thriving economic landscape. These regulations directly benefit consumers in several key ways: - Consumers enjoy lower prices due to the prevention of monopolies and the promotion of healthy competition, prompting businesses to offer the best deals to secure market share. - Competition drives companies to enhance their products and services continually, resulting in higher quality offerings for consumers. - A competitive marketplace fuels innovation, compelling businesses to create new and improved products that align with consumer needs and preferences. - Consumers have access to a broader range of products and services, enabling them to select options that best fit their requirements and budgets. - Competition laws protect consumers from unfair business practices, ensuring a level playing field where businesses compete based on merit rather than through deceptive or anti-competitive behaviors. By upholding and reinforcing these laws, we not only maintain the integrity of the market but also empower consumers, fuel economic growth, and cultivate a culture of innovation.

USTR Launches Review of Trade in Automotive Goods Under the USMCA   WASHINGTON – The Office of the United States Trade Representative (USTR) last week announced the launch of a statutory review of the operation of the United States-Mexico-Canada Agreement (USMCA) with respect to trade in automotive goods. As part of its review, USTR seeks public comments and will convene a public hearing to receive input from interested stakeholders. This is the second of five biennial reviews USTR will conduct, as required under the USMCA Implementation Act (P.L. 116-113).  As explained in a formal notice, USTR and the Interagency Committee on Trade in Automotive Goods are seeking public input on the actions automotive companies are taking to comply with the automotive rules of origin under the USMCA. Interested parties may also comment on the enforcement of the USMCA’s automotive rules of origin and other relevant matters. Finally, the public is invited to provide views on whether the USMCA automotive rules of origin remain effective in light of new vehicle technologies, such a clean-energy vehicles, as well as changes to the character of automotive goods and processes by which autos and auto parts are produced. The public is invited to submit comments via the Regulations.gov online portal through January 17, 2024.  The public is also invited to participate in a virtual hearing that will take place on February 7, 2024.  No later than July 1, 2024, USTR will submit the results of its review to Congress and will publish its report on https://www.ustr.gov/. The results of USTR’s first review was published in 2022 

Right-to-repair laws are now in effect in Europe to the dismay of manufacturers https://lnkd.in/enrj4UBP

FTC announced two days ago a final rule, soon to be published, that will make it unlawful to use non-competition agreements across the country, with very few exceptions and requires action within 120 days of publication. Further details can be read in our alert here: https://rb.gy/j52c57

The German automotive association, VDA, is poised to release a comprehensive position paper that stresses the importance of safeguarding business information confidentiality in China's recently enacted anti-espionage laws.... #automotive #china #ForeignInvestment #germany #industry #regulation #tradewar #VDA

Predatory pricing is an illegal method of using low pricing to drive competition out of business. It does not sound bad, and in the short run, it is actually beneficial to the consumer. However, after they drive competitors out of business, the company using predatory pricing will raise its prices, and there will no longer be any competition to control how high they can raise the price. For that reason, it was made illegal under the Sherman Antitrust Act. Click the link below to learn more. Darin W. White

The German automotive association, VDA, is poised to release a comprehensive position paper that stresses the importance of safeguarding business information confidentiality in China's recently enacted anti-espionage laws.... #automotive #china #ForeignInvestment #germany #industry #regulation #tradewar #VDA

A reminder that the FCA is still very much focused on the implementation of and the embedding of the Consumer Duty #financialservicesregulation #consumerduty #protectingconsumers

Counterfeiting is a legal issue and a significant threat to legitimate manufacturing, supply chains, and brands. The National Association of Manufacturers estimates that counterfeits have cost the US economy nearly $131 billion; including $22.3 billion of lost labor income; 325,542 fewer jobs; $5.6 billion of lost federal tax revenues; and nearly $4 billion less in state and local tax collections. In this article, David Fraser, MBA, M.A.Sc., examines the prevalence and costs of counterfeiting globally, what it takes to identify counterfeit goods and track their origins, and the reputational risks posed to companies impacted by counterfeiting and piracy. To learn more, visit: https://lnkd.in/gTU8i7uq #IntellectualProperty #AntiCounterfeit #Counterfeit