Maersk Resumes Accepting Commercial Cargo to and from Iraq

September 5, 2008

Maersk Line has announced that as of September 1, 2008, the company has resumed its acceptance of commercial cargo to and from Iraq. Maersk Iraq will be operating through its sub-agent, Inchcape Shipping Agency.

For further information about Maersk Line in Iraq, send an e-mail to jorsalcplmng@maersk.com or call (+962-6) 5802304.

European Union Imposes New Rules on Pesticide Residues in Food

September 5, 2008

Starting September 1, 2008, new standards impose uniform limits on pesticide residues in food across the European Union (EU).

pesticideThe new standards are intended to ensure consumer protection and ease trade and imports. “Food produced or imported in one member state must be safe for consumers in all of them,” health commissioner Androulla Vassiliou explained.

The pesticide residues law covers about 1,100 pesticides used in agriculture in or outside the EU. It lists maximum residue levels for a wide range of products—everything from meat, milk, vegetables and fruit to nuts, spices and animal feed. The limits apply to both fresh and processed products, adjusted for dilution or concentration.

Previously, the EU set limits for some pesticides, while individual countries were responsible for others. Residues exceeding the limit in one country were acceptable in another, and for some pesticides, there were no limits at all.

The new limits are intended to take account of the needs of the most vulnerable groups, such as babies and children. An important principle is that food safety takes priority over plant protection.

EU governments are responsible for enforcing the law, but the European Commission will monitor compliance. The limits for particular pesticides and crops can be found using the Commission’s online pesticide residue database.

European Commission Blocks Panel in IT Case at WTO Dispute Settlement Body Meeting

September 5, 2008

At the World Trade Organization’s (WTO) Dispute Settlement Body (DSB) meeting last week, the European Comission (EC) blocked a panel request in the information technology (IT) case submitted jointly by the United States (WT/DS375), Japan (WT/DS376), and Chinese Taipei (Taiwan) (WT/DS377).

The three nations argued that the EC should not apply any tariffs on cable and satellite boxes that can access the Internet, flat panel computer monitors, and computers peripherals such as printers, copiers, faxes and scanners. The complainants declared that these products were included in the IT Agreement (ITA) according to which signatories should apply a duty-free tariff to the products covered by the ITA. They added that they had had consultations with the EC in June and July that did not resolve the dispute.

The EC stated that since the adoption of the ITA in 1996, new products and new technologies had appeared on the market that gave the products listed in the Agreement new functionalities and designs. The EC added that these additional functions were making the products so different that they fell outside the scope of the ITA. The EC said that given the rapid evolution in the IT industry, signatories to the ITA should revisit the product coverage of the Agreement through negotiation.=

Ecuador Disappointed at Lack of EC Commitment on Banana Agreement

September 5, 2008

At the World Trade Organization’s (WTO) Dispute Settlement Body (DSB) meeting last week, at the proposal of the Chaiman, items 5 and 6 (WTO/AIR/3230) were removed from the agenda following the notification from the European Commission (EC) (WT/DS27/89 and WT/DS27/90) of its intention to appeal the compliance panel reports (WT/DS27/RW2/ECU and WT/DS27/RW/USA and CORR.1) regarding the importation, sale and distribution of bananas, recourse to article 21.5 of the DSU by Ecuador and the United States.

Under other business, Ecuador made a statement on this issue. Ecuador, followed by Panama, Nicaragua, Costa Rica and Colombia, stated that it was disappointed that the EC did not commit to the agreement negotiated last July on bananas.

Ecuador added that the agreement is a stand-alone arrangement detached from the result of the Doha modalities. Ecuador concluded that the EC held the key to the solution in this long-lasting dispute.

Cameroon said that it was always in favor of a negotiated solution but a negotiation should not exclude other interested parties.

The EC took note of the statements and said that the July banana agreement was undeniably linked to the Doha negotiations. The EC questioned whether the DSB was the appropriate forum for this issue to be raised and said that the TNC or the General Council would be the most appropriate bodies.

NEXUS Joint Enrollment Center Opens in Niagara Falls, N.Y.

September 5, 2008

On September 2, U.S. Customs and Border Protection (CBP) announced the opening of a joint NEXUS Enrollment Center located adjacent to the Whirlpool Bridge border crossing in Niagara Falls, N.Y.

This is the second “Trusted Traveler” Enrollment Center within the Port of Buffalo. The other is located in Fort Erie, Ontario, just across the Peace Bridge. The new Enrollment Center is intended to make obtaining a NEXUS border-crossing card easy and convenient for nearby residents on both sides of the border. The new center also provides a second location for current members to renew their application, which must be done every five years.

“Trusted Traveler programs allow CBP to facilitate pre-screened travelers so that we can focus our efforts on those travelers that we have no advanced information on,” said James T. Engleman, CBP director of field operations for the Buffalo Field Office. “We are very excited about the opening of the new Enrollment Center in Niagara Falls and we anticipate substantial interest from the traveling public. I encourage all people who are undecided as to what document they will use to enter the U.S. to give serious consideration to the NEXUS program.”

NEXUS enrollment center opening - CBP's Engleman and Rep. Slaughter

NEXUS is a joint CBP-Canada Border Services Agency program that both the American and Canadian governments implemented to enhance border security while simplifying border crossings for pre-approved, low-risk travelers. Approximately 225,000 U.S. and Canadian citizens/residents are currently enrolled in the NEXUS program nationally. Locally, CBP and CBSA have enrolled over 38,000 individuals in NEXUS and this facility will provide increased enrollment capacity and accessibility in preparation for Western Hemisphere Travel Initiative (WHTI) identity document requirements on June 1, 2009.

WHTI is a key 9/11 Commission recommendation designed to reduce the vulnerability resulting from the sole acceptance of verbal declarations of citizenship for Americans and Canadians entering the U.S. by land or sea, by requiring approved travel documentation.

Under the Western Hemisphere Travel Initiative, oral declarations of citizenship alone are no longer sufficient to establish identity and citizenship for entry into the United States. Currently, U.S. and Canadian citizens ages 19 and older must present a government-issued photo ID, such as a driver’s license, along with proof of citizenship, such as a birth certificate or naturalization certificate or they may present a single WHTI-compliant document. Children ages 18 and under are currently asked only to present proof of citizenship, such as a birth certificate. Passports and trusted traveler cards, such as NEXUS and FAST, are considered WHTI-compliant documents on the northern border and are accepted for cross-border travel. NEXUS pre-approved travelers crossing the U.S.-Canada border receive the added benefits of access to dedicated commuter lanes, expedited marine reporting, and access to NEXUS kiosks at designated Canadian airports.

Effective June 1, 2009 travelers will need to present a valid and acceptable document that proves both identity and citizenship when entering the U.S. by land or sea. Travelers on the northern border will be able to select from one of five different documentation options, based upon their needs. These include a passport, the new U.S. passport card, new state-issued enhanced driver’s license, and the two Trusted Traveler Program cards (NEXUS and FAST), which are accepted already.

NEXUS members can use dedicated lanes at selected ports along the U.S.-Canadian border. The NEXUS alternative inspection program allows pre-screened, low-risk travelers to be processed with little or no delay by United States and Canadian border officials. There are currently 18 land border crossings that offer NEXUS and the program is also available in the air and marine modes. Locally, members can use dedicated lanes at the Peace Bridge and Rainbow Bridge border crossings. The Whirlpool Bridge is dedicated as a NEXUS only crossing, the only border crossing in the country to be designated as such. Travelers can apply online at www.nexus.gov/. Additionally, NEXUS information is available toll-free at 1-866-NEXUS 26 (1-866-639-8726).

The new Enrollment Center is located at 615 Mill Street (off Whirlpool Street adjacent the Whirlpool Bridge), Niagara Falls, New York 14305. The hours of operation are Tuesday through Friday, 8 a.m. to 8 p.m., and Saturday, 8 a.m. to 3 p.m. The Fort Erie Enrollment Center located at 10 Central Avenue, Ft. Erie, Ontario L2A6G6, Canada, is open Monday through Friday, 8 a.m. to 8 p.m., and Saturday and Sunday, 8 a.m. to 3 p.m.

Retired University of Tennessee Professor Convicted of Arms Export Violations

September 5, 2008

A federal jury convicted retired University of Tennessee professor J. Reece Roth on September 3, after a 7-day trial, of illegally exporting military technical information relating to plasma technology designed to be deployed on the wings of drones operating as a weapons or surveillance systems, the Department of Justice has announced.

“Today’s guilty verdict should serve as a warning to anyone who knowingly discloses restricted U.S. military data to foreign nationals. The illegal export of such sensitive data represents a very real threat to our national security, particularly when we know that foreign governments are actively seeking this information for their military development,” said Patrick Rowan, Acting Assistant Attorney General for National Security.

The Arms Export Control Act prohibits the export of defense-related materials, including the technical data, to a foreign national or a foreign nation, without the required U.S. government license. The illegal arms exports by Dr. Roth related to technical data and information that was developed through a U.S. Air Force research and development contract to develop this advanced form of a drone.

Dr. Roth was specifically convicted of one count of conspiring with Atmospheric Glow Technology, Inc., a Knoxville, Tennessee, technology company, to unlawfully export in 2005 and 2006 15 different “defense articles” to a citizen of the People’s Republic of China in violation of the Arms Export Control Act. He was also convicted of 15 counts of violating the Arms Export Control Act and one count of wire fraud relating to defrauding the University of Tennessee of the honest services by illegally exporting sensitive military information relating to this U.S. Air Force contract.

The maximum punishment for the conspiracy conviction is 5 years imprisonment and a fine of $250,000. The maximum penalty for each of the Arms Export Control Act offenses is 10 years imprisonment, a criminal fine of $1,000,000, and a mandatory special assessment of $100 for each offense. Dr. Roth’s sentencing has been set for January 7, 2009, in U.S. District Court in Knoxville.

United States Attorney Russ Dedrick said, “The strict enforcement of the export technology laws protects our country and its citizens. This verdict, by a jury of Dr. Roth’s peers, demonstrates that our citizens and the United States will not tolerate such intentional conduct to undermine the security and the economy of our country. Our scientific and educational communities must take precautions to insure that technology and research are protected, when required, from disclosure to foreign governments.”

Dedrick praised the efforts of the investigative agencies, as well as Assistant U.S. Attorneys Will Mackie and Jeff Theodore, for their fine work on this investigation and prosecution of the case.

The indictment and conviction was the result of an ongoing investigation by the Federal Bureau of Investigation (FBI), United States Air Force, Office of Special Investigations, U.S. Immigration and Customs Enforcement (ICE), and Department of Commerce Export Enforcement. Assistant United States Attorneys A. William Mackie and Jeffrey E. Theodore represented the United States.

OECD Secretary-General Calls for Successful Conclusion of Doha Round

September 5, 2008

The Organization for Economic Co-Operation and Development (OECD) Secretary-General Angel Gurría has called on the participants in negotiations for a new multilateral trade agreement to “go the last mile” and bring the World Trade Organization’s (WTO) Doha round to a successful conclusion.

At the High Level Forum on Aid Effectiveness in Accra, organized by OECD and the World Bank and hosted by the government of Ghana, Mr. Gurría said, “There is no scarcity of worrying news on the global economy these days. But it is in our power to provide an immensely OECD Secretary General Angel Gurriapositive signal, by bringing the WTO’s Doha round to a successful conclusion. The WTO is about open markets. Opening up markets further in the Doha negotiations is one of the most important contributions we can make to stimulating the world economy and to allowing all nations to benefit from global economic progress.”

He said it is wise to place priority emphasis on development in the Doha discussions because open markets are important for economic and social development.

“Developing and emerging economies must be enabled to improve their own economic prospects by getting better access to growing markets, and seeing subsidies reduced that distort competition with their producers,” he said. “At the same time it is also important to remember the experience of many rapidly growing economies that markets open to foreign products have proven a most successful ingredient for economic growth.”

Mr. Gurría said that considerable progress has been made in the Doha negotiations over the years, and the July 2008 Ministerial added significant elements to a package of potential final results. The serious efforts made in July testify that the benefits of open markets are well understood, he said, particularly at a time when the global economy is showing signs of weakness. He said that with the support of the WTO’s Director General Pascal Lamy, the ministers were within reach of a package that could make the Doha Round one of the most successful rounds of GATT/WTO negotiations ever.

“What is needed now is the political will, including at the highest level of governments, to go the last mile. Short-term domestic political concerns must not get in the way of achieving the global public good that is now so clearly in sight. We can build on the good progress that was achieved up to and in the July Ministerial, and provide negotiators with the leeway needed to seal a package of ambitious results. The process to get there may take a while, but the sooner it is achieved the better it can contribute to stimulating the ailing global economy.”

He continued, “Fundamentally, a Doha breakthrough, so nearly in reach in July, now depends on political leadership more than on anything else. Where further analysis and evidence can assist, the OECD stands ready to provide whatever may be needed.”

Foreign Agriculture Officials to Visit Minnesota for Annual Tour

September 5, 2008

The U.S. Department of Agriculture (USDA) announced on Wednesday that 33 foreign agricultural officials, representing 29 countries, will visit Minnesota September 7-13, 2008, as part of an annual orientation tour sponsored by USDA’s Foreign Agricultural Service (FAS).

“These tours promote American agriculture and expand global markets for U.S. farm and food products,” said FAS Administrator Michael W. Yost. “This year’s trip will provide foreign officials with a first-hand look at the quality and variety of American farm products that Minnesota has to offer.”

CornFAS works with foreign agricultural attachés and counselors, based in Washington, D.C., to plan these informational trips. Foreign officials pay for their own travel, lodging, and expenses.

Minnesota food and agricultural exports totaled $3.6 billion last year, ranking seventh among all 50 states. These exports also supported more than 35,000 American jobs. The state’s leading commodities include corn, hogs, soybeans, dairy products, and cattle and calves. Total value of farm receipts for these products amounted to some $9.8 billion in 2006.

This year’s tour, organized by the Minnesota Department of Agriculture (MDA) and FAS, will begin in Minneapolis and finish in St. Paul. Some of the tour’s destinations include the Minneapolis Grain Exchange, the Mill City Museum, General Mills, and Cargill, all in Minneapolis; Jennie-O’s turkey processing plant, the Chippewa Valley Ethanol Company’s corn ethanol plant, Fibromin’s litter-fueled power plant, and East Dublin Dairy, all in west-central Minnesota. The tour group will continue to Granite Falls and visit Fagen, Inc., a builder of ethanol plants, as well as Southern Minnesota Sugar Beet Cooperative in Renville, Revier Cattle Company in Olivia, and Seneca Foods’ processing plant in Glencoe. Then the group will head to Plato for Soybean Field Day, visit Cenex Harvest States in Inver Grove Heights, and conclude the trip in St. Paul by touring the University of Minnesota’s agriculture department, as well as the Summit Brewing Company’s brewery.

For more information about the tour, contact Allen Alexander, Supervisor, FAS’s Foreign Visitors and Protocol Branch, at (202) 720-9860, or by e-mail at Allen.Alexander@fas.usda.gov.

Matson Global Distribution Services Acquires Bay Area Warehousing & Distribution Company PACAM

September 5, 2008

On September 2, Alexander & Baldwin, Inc. (A&B) announced that its Matson Global Distribution Services subsidiary (”Matson Global“) has completed the acquisition of Pacific American Services, LLC., (PACAM), a leading regional, asset-light warehousing, packaging and distribution company specializing in value-added handling of domestic, import, and export goods.

“The acquisition of PACAM extends our service reach deeper into our customers’ value and supply chains while also providing an excellent platform for expansion in this fast-growing market segment. PACAM’s nearly one million square feet of warehousing and distribution space provides exceptional service coverage for the entire Bay Area and Northern California, complementing our recently acquired Savannah facilities to give Matson Global a truly national footprint,” said A&B Chairman and CEO Allen Doane. “We are pleased to add a versatile, experienced management team and are equally pleased to welcome a first-rate roster of clients to our own customer base. As part of a continuing, focused strategy to grow our domestic presence, we expect to rapidly scale these operations in the next few years.”

PACAM serves hundreds of local, national and international customers and has extensive industry expertise in handling high value goods in the food and beverage, high tech and consumer packaged goods sectors. The company, which is ISO 9001-2000, organic and FDA certified, was founded in 1987 and is headquartered in Oakland, California. “We found the right partner at the right time to meet the distribution opportunities of our diversified customer base. With Matson Global’s emerging national warehouse inventory, and the depth, quality and reliability of Matson’s ocean shipping and logistics services, we are poised to grow with an expanded slate of new products in new markets,” said Linda Hothem, PACAM CEO and founder.

Matson Global was established in 2007 as a subsidiary of Matson Integrated Logistics, the 10th largest logistics company in the United States and a subsidiary of Matson Navigation Company, to provide third-party logistics services that include warehousing, distribution, and freight forwarding throughout the domestic United States and internationally, especially Asia.

PACAM also operates Foreign Trade Zone #56 in the Oakland/San Francisco Bay area. The Port of Oakland is featured as the U.S. Custom House Guide’s Port of the Month for September 2008.

OFAC Issues General License Under Belarus Sanctions Program

September 4, 2008

belarusian-passports.jpgThe Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a new general license, General License No. 1 PDF icon, pursuant to the Belarus Sanctions Program. The license authorizes transactions between U.S. persons and Lakokraska OAO and/or Polotsk Steklovolokno OAO, two entities that were designated on May 15, 2008, pursuant to Executive Order 13405 of June 16, 2006 (71 FR 35485 PDF icon, published on June 20, 2006). Such transactions are authorized until March 2, 2009. The agency notes that unless otherwise authorized, all property and interests in property of Lakokraska OAO or Polotsk Steklovolokno OAO that were previously blocked pursuant to E.O. 13405 remain blocked.