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INTERNATIONAL BUSINESS AUTHORITY

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Month: May 2018

The Foreign Corrupt Practice Act and Cross-Border M&A*

The United States Foreign Corrupt Practice Act (FCPA) was passed in 1977 and is now the most widely enforced anti-corruption law. The FCPA contains two main elements: (1) the anti-bribery provision, which prohibits U.S. firms, companies, and individuals from paying bribes to foreign officials for the advancement of a business deal; and (2) the accounting provision, which requires U.S. and foreign public companies to create, implement, and maintain accurate books, records, and internal accounting systems.

NAFTA Update*

The renegotiations of the North American Free Trade Agreement (NAFTA) began with a rocky start when President Trump threatened to withdraw from the Agreement unless it was renegotiated on terms more favorable to the United States. The renegotiations began on August 16, 2017, and have proceeded at an unexpectedly slow pace, due in large part to the steel and aluminum tariffs that have overshadowed NAFTA-specific trade issues.

To Sanction or Not to Sanction–That Is the Question: How Congressional Action Could Affect Your Business*

On April 6, 2018, the Trump Administration imposed additional sanctions on seven Russian oligarchs and twelve companies they own and/or control. The Administration also imposed sanctions on senior Russian government officials and a state-owned Russian weapons trading company and a Russian bank, a subsidiary of the weapons company. The sanctions are a response to the alleged Russian interference in the 2016 presidential election and target public officials and some of Russia’s most influential businesspeople. These actions are pursuant to the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA), a bipartisan law enacted last August, which reinforces existing sanctions, limits the President’s ability to lift or waive certain sanctions, and authorizes the Administration to continue to impose sanctions.

Solar Tariffs and Section 201 Update*

On January 22, 2018, the Trump Administration imposed 30 percent tariffs on foreign-made solar cells and modules. The decision follows a unanimous decision by the U.S. International Trade Commission (USITC) recommending trade remedies, including tariff-rate quotas and ad valorem tariffs of up to 35% on solar goods. 

The Trump Administration’s solar tariffs were implemented in response to a Section 201 petition filed jointly by Suniva, a Chinese-owned, U.S.-based solar company, and SolarWorld Americas, Inc., an American subsidiary of a German