On June 30, the United States and the Republic of Kosovo signed a bilateral agreement under which the Overseas Private Investment Corporation (OPIC) will continue its operations in Kosovo in light of its status as an independent country.

OPIC Acting President Dr. Lawrence Spinelli and Kosovo Prime Minister Hashim Thaçi signed the investment incentive agreement at a ceremony at OPIC headquarters.

OPIC programs have been open in Kosovo since May 2002 pursuant to an agreement between theUnited States and the United Nations Interim Administration Mission in Kosovo (UNMIK). Since Kosovo declared itself a republic in February 2008, its independence has been recognized by 60 countries worldwide, including the United States and most European Union members, and yesterday it formally joined the International Monetary Fund (IMF) and World Bank.

According to the new agreement, the United States and Kosovo affirm “their common desire to encourage economic activities in the Republic of Kosovo that promote the development of the economic resources and productive capacities” of Kosovo.

“Having recognized Kosovo as an independent state, it is appropriate that the United States enter into a direct agreement with Kosovo and that OPIC operate on the basis of a new agreement,” said Dr. Spinelli. “We at OPIC look forward to working closely with both U.S. and Kosovo companies to facilitate greater levels of American private sector investment in Kosovo.”

“We welcome this agreement as a sign of support in the prospective economic potential of Kosovo, and as a sign of security for both U.S. and Kosovo companies investing in our country,” said Prime Minister Thaçi. “We appreciate the support of the United States and OPIC.”

Dr. Spinelli noted that since 2002, OPIC had provided more than $10.5 million in financing and political risk insurance to four projects in Kosovo in the energy, construction, and services sectors. OPIC’s current portfolio in Kosovo comprises $4 million in financing support for a construction project.

The Bureau of Industry and Security (BIS) is reminding United States Principal Parties in Interest (USPPIs) and their authorized filing agents (AES filers) that the AES record containing the Electronic Export Information (EEI) is an export control record under section 758.1(f) of the Export Administration Regulations (EAR). Furthermore, the AES record represents whether the export authorized under the terms and conditions of a license, license exception, or no license required is true, accurate, and complete.

Effective October 1, 2009, BIS will be adding edits to the EEI to improve statistics and to ensure that AES filers are correctly certifying the use of a license or license exception authorization or no license required designation. To prevent the return of fatal errors from AES, AES filers must prepare for the following edits:

• The Export Control Classification Number (ECCN), when reported in AES must be valid 5-position ECCN as listed on the Commerce Control List. See Supplement 1 to section 774 of the EAR for a complete list of valid ECCNs and their descriptions.

• The Special Comprehensive License (SCL) number reported in AES under license type C31 must be a BIS-approved SCL.

• License exceptions LVS(C35), GBS(C36), CIV(C37), and TSR(C38) must designate an eligible ECCN and country. See Part 740 (License Exceptions) (PDF) and Supplement 1 to section 774 (Commerce Control List)

• In accordance with the EAR section 740.17, license exception ENC(C50) must only be used with ECCNs 5A002, 5B002, 5D002 and 5E002 (PDF).

For further information, contact: Office of Exporter Services; Washington, DC; phone: (202) 482-4811.

The World Trade Organization (WTO) and United Nations Environment Program (UNEP) have published the first-ever report examining the intersections between trade and climate change. The report, titled Trade and Climate Change (PDF), explores the connections from four perspectives: the science of climate change, economics, multilateral efforts to tackle climate change, and national climate change policies and their effect on trade.

The WTO and UNEP are partners in the pursuit of sustainable development and the report is the outcome of collaborative research between the WTO and UNEP.

“With a challenge of this magnitude, multilateral cooperation is crucial and a successful conclusion to the ongoing climate change negotiations is the first step to achieving sustainable development for future generations,” said WTO Director General Pascal Lamy and UNEP’s Executive Director Achim Steiner in a joint statement.

In their statement, both Steiner and Lamy also urged the international community to seal an equitable and decisive deal at the crucial UN climate convention meeting in Copenhagen, Denmark in December 2009. They also urged nations to conclude the Doha trade round, which includes opening trade in environmental goods and services.

The key elements of the report include the following:

• Greenhouse gas emissions generated by human activities have resulted in global warming. This trend is projected to continue unless there are significant changes to current laws and policies.

• Most sectors of the global economy are likely to be affected by climate change, and this will often have implications for trade. Many of the sectors most affected, such as agriculture, forestry and fisheries, are critical for developing countries. Climate change is likely to alter the comparative advantage of these countries in such sectors, and thereby alter the pattern of international trade. Moreover, climate change is expected to have an impact on trade infrastructure and transportation routes.

• Although trade has important implications for greenhouse gas emissions, trade opening could facilitate the adoption of technologies that reduce the emission-intensity of goods and their production process and lead to a change in the mix of production from energy-intensive to less energy-intensive sectors. In this context, a successful conclusion of WTO negotiations on opening markets to environmental goods and services will help improve access to climate-friendly goods and technologies.

• There is a wide range of policy measures available to governments to help reduce greenhouse gas emissions. They are typically either regulatory measures (i.e. regulations and standards) or economic incentives (e.g. taxes, tradable permits, and subsidies).

• The report reflects the debate on how industrial sectors may be affected by carbon-constraining domestic policies, and in particular, by emission trading schemes. Policies aimed at preventing carbon leakage and at protecting competitiveness of energy-intensive industries are also being debated.

• Current WTO rules provide flexibility for adopting national measures to mitigate climate change. A number of WTO rules deal with many of the economic and regulatory instruments used by countries to mitigate climate change. However, the relevance of WTO rules to climate change mitigation policies, as well as the implications for trade and the environmental effectiveness of these measures will very much depend on how these policies are designed and the specific conditions for implementing them.

• Addressing climate change represents one of the defining challenges of our time, and requires concerted action at both national and international level. The debate on trade and climate change is taking place against the backdrop of vital multilateral climate change negotiations, which are due to come to a conclusion at the 15th Conference of the Parties to the United Nations Conference on Climate Change in December 2009 in Copenhagen, Denmark. A strong multilateral climate change agreement with binding commitments and supportive measures is the best way forward in establishing the framework for reducing greenhouse gases emissions from 2012 onward.

Overall, the report highlights that there is scope under WTO rules for addressing climate change at the national level. However, the relevance of WTO rules to climate change mitigation policies, as well as the implications for trade and the environmental effectiveness of these measures, will very much depend on how these policies are designed and the specific conditions for implementing them.

Ryder System, Inc., a transportation and supply chain management solutions, has announced its certification as a Third Party Logistics Provider (3PL) in the Customs-Trade Partnership Against Terrorism (C-TPAT) for logistics operations in the U.S., Canada, and Mexico. The 3PL certification enhances Ryder’s existing C-TPAT certification as a Highway Carrier received in 2003, enabling the Company to incorporate its more complex supply chain operations in North America into the program.

C-TPAT is a joint government-business initiative supported by the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP). Since its inception, C-TPAT has sought to build voluntary cooperative relationships with importers, carriers, brokers, warehouse operators and manufacturers that promote global supply chain security and reduce border vulnerabilities. The creation of the new Third Party Logistics Provider enrollment category in 2008 is part of a continuing evolution of the C-TPAT program and its efforts to include those supply chain sectors that add value to U.S. Customs and Border Protection’s efforts to protect the supply chain.

“Implementation of the Third Party Logistics Provider category for C-TPAT reinforces the extensive impact that outsourced logistics providers have on international supply chain security,” said Ryder President of Global Supply Chain Solutions, John Williford. “C-TPAT has become the benchmark for doing business with importers and large manufacturers in the U.S. and Ryder’s participation in the program reflects its commitment to improving supply chain and cargo security.”

Businesses are required to apply for participation in C-TPAT and must conduct a comprehensive assessment of their supply chain security using the C-TPAT security guidelines developed by U.S. Customs and Border Protection and the trade community.

Ryder has supply chain operations throughout the U.S., Canada and Mexico, and in Asia. Ryder currently supports several C-TPAT importers and foreign manufacturers from hundreds of locations across North America.

In recent weeks, Congressman Bobby L Rush (D-Ill.) has been vocal in his support of U.S. economic and trade development with Africa. Rush, who is the chairman of the House Subcommittee on Commerce, Trade, and Consumer Protection, has both issued a letter to President Obama encouraging him to expand the United States’ relationship with Africa and issued a statement on the subcommittee’s joint hearing with the Subcommittee on Africa and Global Health on U.S.-Africa Trade Relations: Creating a Platform for Economic Growth.

In his letter to President Obama, Rush states that he looks forward to working with the Administration to implement a mutually beneficial policy that will increase commerce and trade, especially for women, minorities, and small- and medium-sized enterprises.

The letter (PDF) reads in part:

I strongly encourage you to expand the commitment of the United States with sub-Saharan Africa. Our interest should far transcend the humanitarian concerns that have frequently underpinned U.S. engagement with the continent. Economic development, natural resource management, human security, capacity building, and global stability was well as traditional humanitarian assistance are inextricably linked.

Within the urgent, complex human and national security agenda of lowering poverty; disease; hunger; and abuse of women, children, and minorities, I fully support your aspiration to stimulate private sector development, two-way trade, and investment. Currently, there are thousands of American jobs that depend upon U.S. exports to Africa. There could be many more when Africa realizes its potential. In the near future, we wish to see a larger African middle class, more job opportunities, increased purchasing power for its consumers, and more exports to the continent.

Shortly after issuing his letter, Rush issued a statement emphasizing the Subcommittee’s support for charting a more productive course between the United States and Africa.

Rush’s statement includes the following highlights:

“African economies are among the fastest growing, globally, and registered nearly 6% overall economic growth in 2007, the highest in 20 years. The continent’s challenges are amplified by the current global financial crisis. Nevertheless, Africa could represent a growth center and a stimulus to the world economy if provided with the proper tools.

“The U.S. government and private sector should jointly promote Africa’s economic development, U.S. trade with the region, and U.S.-Africa business partnerships.

“By increasing commerce and trade opportunities that include women, minorities, and small- and medium-sized enterprises, on both sides of the Atlantic, we will create a new zone of security and prosperity in Africa.

“I strongly encourage my colleagues to expand their commitment to expand trade and investment, spur economic growth, and create job opportunities for both the African and American workers.”

On June 30, the U.S. Department of Agriculture (USDA) accepted several bids from exporters under the Dairy Export Incentive Program (DEIP) for butter and nonfat dry milk to Africa, Asia, Eurasia, and the Middle East.

The bids are as follows:

• Four bids for butter to Africa and the Middle East
  • The awards totaled 256 metric tons of butter.
  • Delivery period: July 1 to September 20, 2009.
  • Average bonus: $850.00 per metric ton.
  • Remaining global DEIP balance: 8,138 metric tons.
  • Bonuses were awarded to Burt Lewis International Corp. (100 metric tons) and Dairy Farmers of America, Inc. (156 metric tons)

• One bid for butter to Asia and Eurasia
  • The award totaled 31 metric tons of butter.
  • Delivery period: July 29 to October 29, 2009.
  • Bonus: $850.00 per metric ton.
  • Remaining global DEIP balance: 8,107 metric tons.
  • Bonus was awarded to Challenge Dairy Products, Inc.

• Two bids for nonfat dry milk to Africa and the Middle East
  • The awards totaled 174 metric tons of nonfat dry milk.
  • Delivery period: July 1 to September 30, 2009.
  • Average bonus: $187.17 per metric ton.
  • Remaining global DEIP balance: 48,176 metric tons.
  • Bonuses were awarded to DairyAmerica, Inc. (69 metric tons) and P.S. International, Ltd. (105 metric tons).

On June 29, U.S. Secretary of Commerce Gary Locke hosted a meeting with Colombian President Álvaro Uribe at the Commerce Department. It was the first meeting between the two officials.

Locke and Uribe discussed the importance of trade and commercial relations between the United States and the Republic of Colombia and the strides Colombia has made in improving security conditions, reducing violence, and enhancing economic opportunities for its citizens under President Uribe’s leadership. They also agreed on the need for continued progress in these areas.

They also highlighted the importance of the U.S.-Colombia Trade Promotion Agreement (TPA) and the U.S. and Colombian governments’ shared commitment to eventual passage of the TPA.

“We look forward to continuing to work as partners with the Colombian government to expand our robust trading relationship and improve the ability of Colombians to exercise their fundamental labor rights,” said Locke. “The TPA can play a central role in the accomplishment of these goals.”

The Export-Import Bank of the United States (Ex-Im Bank) has expanded its support for U.S. small business exports by approving Frost National Bank (Frost) of San Antonio, Texas, and PNC Bank (PNC) of Pittsburgh, Pa., for its medium-term delegated authority (MTDA) program.

Under the program, approved lenders can increase use of Ex-Im Bank’s medium-term guarantees supporting commercial loans for foreign buyers of U.S. capital goods such as machinery and equipment. The program is designed to reduce transaction turnaround time and provide additional support for U.S. small-business exports.

Frost, a major regional lender with more than 100 financial centers throughout Texas, initially plans to use the program to support clients’ exports to Mexico. PNC is currently one of the largest users of Ex-Im Bank’s short- and medium-term products, including working capital loan guarantees.

“We welcome the growing, diverse range of banks that are showing interest in this program,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Through these lenders, we look forward to reaching and more efficiently serving even more small and medium-sized U.S. exporters.”

Frost and PNC join three other lenders already approved for the MTDA program, Citibank, N.A., UPS Capital Business Credit, and NorthStar Trade Finance, Inc.

Under the program, approved lenders have delegated authority to underwrite and authorize Ex-Im Bank-guaranteed medium-term transactions without prior Ex-Im Bank review and approval. In each transaction, the lender will be required to share the credit risk by retaining 10% of the commercial risk but will also retain 10% of the Ex-Im Bank exposure fee. Transactions involving small-business exporters or small-business suppliers will be eligible for increased Ex-Im Bank risk coverage, and the lender’s commercial-risk retention will be reduced to 8%.

The lenders all have a thorough knowledge of Ex-Im Bank policies and credit standards, enabling them to expedite approvals and help U.S. exporters offer timely financing to their foreign customers.

Loans approved under the program may have repayment terms of 2 to 5 years. Transactions requiring a higher degree of specialized judgment, such as those involving complex financing, environmental, or economic-impact analysis, may be excluded. Excluded transactions may be submitted for consideration under Ex-Im Bank’s standard medium-term guarantee program.

The Transportation Security Administration (TSA) announced two new TSA canine teams to enhance explosives detection capabilities at Orlando International Airport (MCO) air cargo facilities. Orlando is the second city in Florida after Miami in which these TSA proprietary teams are deployed.

The Orlando teams completed a rigorous 10-week training course at Lackland AFB, San Antonio. The teams have certified in their local environment and are now fully operational. These teams consist of one canine and a TSA Transportation Security Inspector Canine Handler and will primarily search cargo bound for passenger-carrying aircraft.

“Canine teams are one of the quickest, most efficient means of detecting explosives,” said John Daly, Orlando Federal Security Director. “The two new TSA teams provide flexibility in searching air cargo and the ability to surge resources in other modes of transportation such as seen at LYNX during our VIPR – Visible Intermodal Protection and Response – operation.”

TSA canine handlers are non-law enforcement employees and complement the more than 600 TSA-certified state, local and federal law enforcement teams currently deployed nationwide to more than 90 airports and mass transit systems.

The new teams will enhance explosives detection in the air cargo environment and allow TSA to deploy them anywhere in the transportation system in minutes when there is a heightened threat.

Additional TSA teams will be deployed to airports with the greatest volume of cargo on passenger-carrying aircraft.

On June 29, a former executive of a Philadelphia-based export company pleaded guilty to participating in a conspiracy to bribe Vietnamese government officials in exchange for lucrative contracts to supply equipment and technology to Vietnamese government officials, in violation of the Foreign Corrupt Practices Act (FCPA).

Joseph T. Lukas, a resident of New Jersey, was a partner in Nexus Technologies Inc. until 2005. According to court documents, Nexus Technologies Inc. was a privately owned export company that identified U.S. vendors for contracts opened for bid by the Vietnamese government to purchase a wide variety of equipment and technology, including underwater mapping equipment, bomb containment equipment, helicopter parts, chemical detectors, satellite communication parts, and air tracking systems. Lukas was responsible for overseeing the negotiation of contracts with suppliers in the United States.

In connection with his guilty plea, Lukas admitted that from 1999 to 2005, he and other employees of Nexus Technologies Inc. agreed to pay, and knowingly paid, bribes to Vietnamese government officials in exchange for contracts with the agencies for which the officials worked. The bribes were falsely described as “commissions” in the company’s records.

Lucas was arrested on September 5, 2008, after being indicted by a federal grand jury in Philadelphia on one count of conspiracy to bribe Vietnamese public officials in violation of the FCPA and one substantive count of violating the FCPA. Lukas was indicted on September 4, 2008, along with the company and alleged co-conspirators Nam Nguyen, Kim Nguyen, and An Nguyen. Cases are still pending against the remaining defendants and the company.

At sentencing, scheduled for April 6, 2010, Lukas faces a maximum sentence of 10 years in prison.

The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania and Trial Attorney Kathleen M. Hamann of the Criminal Division’s Fraud Section. The case was investigated by the FBI and the U.S. Department of Commerce, Office of Export Enforcement.