Database

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UNITED STATES

Since 2007, last amended in February 2021
Since 2018, last amended in January 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Foreign Investment and National Security Act of 2007 (Public Law 110-49)

Foreign Investment Risk Review Modernization Act of 2018
Foreign investments are subject to approval and generally allowed, such as in SoftBank's 2013 acquisition of Sprint, unless contrary to national interest. The review of the Committee on Foreign Investment on National Security considerations applies to controlling investments in US businesses (but does not apply to greenfield investments). Additionally, the Committee on Foreign Investment in the United States (CFIUS) seeks to identify and address any national security risk that arises as a result of a covered transaction and can request that the President determines whether to suspend or prohibit a covered transaction or take other action. This has occurred in at least five cases, such as the 2007 push by Huawei and Bain Capital to acquire an ownership interest in 3Com; Bain Capital ultimately abandoned the deal once CFIUS declared its intention to ask the President to halt the acquisition. There are several restrictions which can apply on cross-border mergers and acquisitions that are above general restrictions for competition reasons.
The Foreign Investment Risk Review Modernization Act (FIRRMA) serves to strengthen and modernize the CFIUS, broadening its mandate and the executive powers of the President in order to ensure both can step in and screen any potential investments and transactions along national security lines. Amendments to FIRRMA since then have focused on clarifying language and providing for exemption status when dealing with certain countries (particularly those with whom the US maintains a free trade agreement, such as Australia or Canada).
Coverage Horizontal, including SoftBank, Huawei Technologies, Bain Capital,
Broadcom

UNITED STATES

Since 1934, last amended in 1996

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Maximum foreign equity share
Communications Act of 1934
Section 310(a) of the Communications Act of 1934 states that a foreign government or representative may not directly hold a spectrum license, while Section 310(b) states that foreign individuals and business entities may not directly hold any common carrier and broadcast licenses. Under 310(b)(3), a foreign entity is limited to a 20% ownership interest in any common carrier and broadcast licenses. Pursuant to Section 310(b)(4), a foreign entity is limited to a 25% ownership interest in a US corporation that controls any common carrier, and broadcast license. The Federal Communications Commission has the discretion to allow foreign ownership in excess of 25% unless such ownership is inconsistent with the public interest.
Coverage Spectrum, common carriers, and broadcast licenses

UNITED STATES

N/A

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA)
Lack of coverage of CPC 754, CPC 752, and CPC 84 in the WTO Government Procurement Agreement (GPA)
Although the US is a signatory to the WTO Government Procurement Agreement (GPA), its coverage schedules do not fully cover the three most relevant services sectors (CPC 752, 754, 84). While value-added telecommunications services are covered, the agreement does not cover procurement of public utility services including telecommunications and automatic data processing (ADP)-related telecommunications services.
Coverage Enhanced (i.e., value-added) telecommunications services

UNITED STATES

Since 1979, last amended in January 2022

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Trade Agreements Act
Under the Trade Agreements Act (TAA), if the acquisition value of the tender is above a certain purchasing threshold (usually USD 200,000, although sometimes lower), US suppliers must turn to either domestic producers or countries with which the US maintains a free trade agreement (FTA). The TAA opens procurement markets only for products from the US or these so-called “designated countries” and prohibits procurement of end products from non-designated countries (e.g. China, India, Indonesia, Thailand). The purchasing threshold that needs to be reached to involve the TAA depends on the FTA in question, and is updated every two years.
Coverage Horizontal

UNITED STATES

Since January 2011
Since 1986, as amended in 2011

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
James Zadroga 9/11 Health and Compensation Act

Section 5000C(a) of the Internal Revenue Code
The James Zadroga 9/11 Health and Compensation Act imposes a 2% tax on foreign procurement of goods and services by the Federal government, under Section 5000C(a) of the Internal Revenue Code. The tax applies to procurements from "any country which is not a party to an international procurement agreement with the United States." Therefore, there are exemptions for FTAs partners of the United States and signatories of the WTO Government Procurement Agreement.
Coverage Horizontal

UNITED STATES

Since March 2013

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Provision in the “Consolidated and Further Continuing Appropriations Act, 2013” (H.R.933)
A provision in the Consolidated and Further Continuing Appropriations Act (H.R.933), which President Obama signed into law in March 2013, bars the departments of Commerce and Justice, the National Aeronautics and Space Administration (NASA), and the National Science Foundation from procuring any information technology (IT) systems that are produced, manufactured, or assembled by any company owned, directed, or subsidized by the People’s Republic of China, unless the Federal Bureau of Investigation (FBI) has completed an assessment of the security risk of cyber espionage or sabotage associated with the system to the United States.
Coverage Information technology (IT) systems

UNITED STATES

Since 2006

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Exclusion from public procurement
Exclusion of company from public procurement
The US Department of State has decided not to use Lenovo Group Ltd. computers on a classified network, under fears that hardware-level backdoors could exist in these products. Lenovo hardware is also reportedly banned from the US Central Intelligence Agency (CIA), although no evidence of any wrongdoing on the part of Lenovo has been presented.
Coverage Lenovo

UNITED STATES

Since March 2013
Since December 2017
Since August 2018

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Exclusion from public procurement
Consolidated and Further Continuing Appropriations Act, 2013 (2013 Appropriations Act)

National Defence Authorisation Act for Fiscal Year 2018

John S. McCain National Defense Authorization Act for Fiscal Year 2019
After House Permanent Select Committee on Intelligence’s 2012 report, the United States enacted several laws (beginning with the Consolidated and Further Appropriations Act, 2013) that restrict federal procurement of, and grant and loan spending on, Huawei systems. Although the 2013 Appropriations Act does not name Huawei, some observers and Members of Congress described it as designed to address risks posed by Huawei and ZTE.
In the National Defense Authorization Act (NDAA) for Fiscal Year 2018, the United States placed Huawei-related restrictions into federal law beyond the appropriations context. The 2018 NDAA prohibits Department of Defense (DOD) from procuring certain telecommunications equipment or services from Huawei and others as part of DOD’s missions related to nuclear deterrence and homeland defense. Unlike earlier appropriations provisions, the 2018 NDAA names Huawei in the legislation. The 2018 NDAA prohibits DOD from procuring, obtaining, extending, or renewing contracts that include telecommunications equipment or services provided by Huawei, ZTE, or any entity that the Secretary of Defense reasonably believes is owned, controlled by, or “otherwise connected to” the Chinese or Russian governments. To fall within the 2018 NDAA, the telecommunications equipment or services must be a substantial or essential component or critical technology of the system provided to DOD for its nuclear deterrence or homeland defense missions.
The John S. McCain National Defense Authorization Act for Fiscal Year 2019 provides a broader set of Huawei-related restrictions that apply across the executive branch. It restricts [Section 889(a)(1)(A)] executive agencies from procuring systems that contain Huawei equipment or services and prohibits [Section 889(a)(1)(B)] executive agencies from contracting with companies that use Huawei equipment or services in the companies’ own systems—even if those systems are not sold to the government. The Joe Biden administration has stepped up restrictions on Huawei and ZTE, citing national security concerns.
Coverage Huawei, ZTE, other Chinese and Russian network equipment and services

UNITED STATES

Since March 2003, last extended in June 2020, until June 2025

Pillar Tariffs and trade defence measures applied on ICT goods  |  Sub-pillar Antidumping, countervailing duties and safeguard measures on ICT goods
Antidumping measure
In March 2003, the United States authorities imposed a definitive anti-dumping duty imports of silicon metal (HS Code: 280469) from Russia, which is used also for producing silicon compounds as well as silicon wafers used as electronic semiconductors. This measure was last extended in June 2020. The rate of duty on imports from Russia is 79.42% for all companies, with the exceptions of Russian ZAO Kremny/Sual-Kremny-Ural Ltd that get a 56.11% duty.
Coverage Product: Silicon Metal (HS Code: 280469)

Country: Russia

UNITED STATES

Since April 2021, until April 2026

Pillar Tariffs and trade defence measures applied on ICT goods  |  Sub-pillar Antidumping, countervailing duties and safeguard measures on ICT goods
Countervailing Duty
In July 2020, the United States initiated an anti-subsidy investigation on imports of of silicon metal (HS Code: 280469) from Kazakhstan, which is used also for producing silicon compounds as well as silicon wafers used as electronic semiconductors. In April 2021, the United States imposed a definitive countervailing duty with a rate of 160%.
Coverage Product: Silicon Metal (HS Code: 280469)

Country: Kazakhstan

UNITED STATES

Since October 2008, last extended in June 2020, until 2025

Pillar Tariffs and trade defence measures applied on ICT goods  |  Sub-pillar Antidumping, countervailing duties and safeguard measures on ICT goods
Antidumping measure
In October 2008, the United States authorities imposed a definitive anti-dumping duty on import of electrolytic manganese dioxide (HS Code: 282010), which is the critical component of the cathode material in modern alkaline, lithium, and sodium batteries including electrochemical capacitors and hydrogen production. The duty applies to imports from Chinese firms, most notably Guizhou Redstar Developing Import and Export Company, Ltd. This measure was extended in January 2015, and subsequently, in July 2020. The rate of duty on imports from China is 149.92%.
Coverage Product: Electrolytic manganese dioxide (HS Code: 282010)

Country: China

UNITED STATES

Since June 1991, last extended in June 2018, until June 2023

Pillar Tariffs and trade defence measures applied on ICT goods  |  Sub-pillar Antidumping, countervailing duties and safeguard measures on ICT goods
Antidumping measure
In June 1991, the United States authorities imposed a definitive anti-dumping duty imports of silicon metal (HS Code: 280469) from China, which is used also for producing silicon compounds as well as silicon wafers used as electronic semiconductors. This measure was last extended in June 2018. The rate of duty on imports from China is 139.49%.
Coverage Product: Silicon Metal (HS Code: 280469)

Country: China

UNITED STATES

Since March 1997
Since December 2015

Pillar Tariffs and trade defence measures applied on ICT goods  |  Sub-pillar Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)

ITA Expansion Agreement (ITA II)
The US is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods
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ITA: [{"meta_value":"0.00"}]

UNITED STATES

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on ICT goods  |  Sub-pillar Effective tariff rate to ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.57%
Coverage rate of zero-tariffs on ICT goods (%)
75.56%
Coverage: Digital goods

THAILAND

Since 2001

Pillar Online sales and transactions  |  Sub-pillar Adoption of UNCITRAL Model Law on Electronic Signature
UNCITRAL Model Law on Electronic Signatures
Thailand has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal