Blog Page 93

China 301 Tariffs on List 4A Reduction Date Set

By
Patrick Firth
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Tariff Exclusion

PHASE ONE TRADE AGREEMENT IMPLEMENTATION BEGINS ON 2/14/20

UPDATE

Last week, on January 15, President Trump signed a Phase One trade deal with China. The Section 301 additional tariff on List 4A goods imported from China will be reduced from 15 percent to 7.5 percent on Valentine’s Day, Feb. 14, according to the Office of the U.S. Trade Representative. February 14 will be the effective date of the phase one trade agreement the U.S. and China that was just signed.

A full list of goods affected by this change, which have a total trade value of approximately $120 billion, is available here.

In addition to this reduction in tariffs, importers of List 4A goods, which have been subject to higher tariffs since Sept. 1, 2019, can request exclusions for their goods. However, such requests must be filed by Jan. 31. Requests must be submitted through an online portal. The MBS Trade Team is already processing such filings for firm clients now.

The deal will cut the 15 percent tariffs on $120 billion of Chinese imports in half, but leave 25 percent tariffs on an additional $250 billion of imports in place. The agreement prevented a planned tariff rate hike in October 2019 and a new round of tariffs in December 2019.

It is important to note: President Trump has specifically stated that the tariffs on $360 billion in products will remain in place as an enforcement mechanism. Though negotiations are expected to begin immediately, a ‘Phase Two’ agreement is not anticipated until after the U.S. elections, specifically no sooner than 10 months after today’s signing. Success of the negotiations will hinge on China’s adherence to the Phase One Agreement.

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MORE ON THE AGREEMENT

  • Intellectual Property: The Intellectual Property (IP) chapter addresses numerous longstanding concerns in the areas of trade secrets, pharmaceutical-related intellectual property, geographical indications, trademarks, and enforcement against pirated and counterfeit goods.
  • Technology Transfer: The Technology Transfer chapter sets out binding and enforceable obligations to address several of the unfair technology transfer practices of China that were identified in USTR’s Section 301 investigation. For the first time in any trade agreement, China has agreed to end its long-standing practice of forcing or pressuring foreign companies to transfer their technology to Chinese companies as a condition for obtaining market access, administrative approvals, or receiving advantages from the government. China also commits to provide transparency, fairness, and due process in administrative proceedings and to have technology transfer and licensing take place on market terms. Separately, China further commits to refrain from directing or supporting outbound investments aimed at acquiring foreign technology pursuant to industrial plans that create distortion.
  • Agriculture: The Agriculture chapter addresses structural barriers to trade and will support a dramatic expansion of U.S. food, agriculture and seafood product exports, increasing American farm and fishery income, generating more rural economic activity, and promoting job growth. A multitude of non-tariff barriers to U.S. agriculture and seafood products are addressed, including for meat, poultry, seafood, rice, dairy, infant formula, horticultural products, animal feed and feed additives, pet food, and products of agriculture biotechnology.
  • Financial Services: The Financial Services chapter addresses a number of longstanding trade and investment barriers to U.S. providers of a wide range of financial services, including banking, insurance, securities, and credit rating services, among others. These barriers include foreign equity limitations and discriminatory regulatory requirements. Removal of these barriers should allow U.S. financial service providers to compete on a more level playing field and expand their services export offerings in the Chinese market.
  • Currency: The chapter on Macroeconomic Policies and Exchange Rate Matters includes policy and transparency commitments related to currency issues. The chapter addresses unfair currency practices by requiring high-standard commitments to refrain from competitive devaluations and targeting of exchange rates, while promoting transparency and providing mechanisms for accountability and enforcement. This approach will help reinforce macroeconomic and exchange rate stability and help ensure that China cannot use currency practices to unfairly compete against U.S. exporters.
  • Expanding Trade: The Expanding Trade chapter includes commitments from China to import various U.S. goods and services over the next two years in a total amount that exceeds China’s annual level of imports for those goods and services in 2017 by no less than $200 billion. China’s commitments cover a variety of U.S. manufactured goods, food, agricultural and seafood products, energy products, and services. China’s increased imports of U.S. goods and services are expected to continue on this same trajectory for several years after 2021 and should contribute significantly to the rebalancing of the U.S.-China trade relationship.
  • Dispute Resolution: The Dispute Resolution chapter sets forth an arrangement to ensure the effective implementation of the agreement and to allow the parties to resolve disputes in a fair and expeditious manner. This arrangement creates regular bilateral consultations at both the principal level and the working level. It also establishes strong procedures for addressing disputes related to the agreement and allows each party to take proportionate responsive actions that it deems appropriate. The United States will vigilantly monitor China’s progress in eliminating its unfair trade practices and implementing these obligations.

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Read the full text of the Phase One agreement here

Intellectual Property

Technology Transfer

Agriculture and Seafood Related Provisions (Short)

Agriculture and Seafood Related Provisions (Long)

Financial Services

Macroeconomic Policies and Exchange Rate

Expanding Trade

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Don Harmon becomes 39th Illinois Senate President

By
Stephanie Vojas
-
Illinois Senate

The Illinois Senate convened yesterday to select a new Senate President.  As you remember, former Senate President John Cullerton announced, to the shock of his entire caucus, his retirement on November 14, 2019.  His retirement setup a very close race between Senator Kimberly Lightford and Senator Don Harmon.  The Senate began the day in caucus where they first had to decide the rules for the vote before they could get to the business at hand.  In a show of caucus unity, the entire Senate Democratic Caucus headed to the floor for the official vote where they all voted for Senator Don Harmon.  Governor JB Pritzker presided over the session as he celebrated his birthday.

Senator Don Harmon is the 39th President of the Illinois Senate, and the first suburban Democrat to lead the chamber this century.  First elected in 2002, President Harmon served as the President Pro Tempore of the Senate from 2011-2019.  President Harmon was born and raised in Oak Park where he still resides today.  President Harmon has promoted a progressive agenda in Springfield, one based on his profound commitment to social justice and public service.

During his time in the General Assembly, he has championed early childhood education, improving government oversight, advancing ethics reform, curbing gun violence, protecting civil rights and expanding voter access. He also has worked to protect Illinois’ natural resources, promote renewable energy and enhance economic opportunity for all.

President Harmon has also promoted alternative energy sources, passing a plan that will direct the state to invest $30 million in solar energy and a plan that clears the way for $2.2 billion investment in wind energy.

President Harmon was the lead sponsor of the Fair Tax constitutional amendment to allow Illinois to replace the current flat income tax with a fairer, more equitable approach to lower tax rates for lower income levels and higher rates for higher income levels. The fair tax will cut taxes for the vast majority of Illinois families, while still providing for critical services, such as education, health care and programs for senior citizens and people with disabilities.

In the most recent legislative session, President Harmon supported historic school funding reform that overhauled Illinois’ worst-in-the-nation school funding formula, replacing it with one of the most progressive systems in the country. He also worked tirelessly to bring an end to the state’s two-year budget standoff, finally bringing relief in the form of a responsible, balanced budget. After working for 15 years on the issue, President Harmon also advanced a landmark measure allowing Illinois to license gun dealers.

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Effectively Engaging Your Member of Congress

By
Beth Cubriel
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capitol building

The US Congress takes frequent recesses and is often criticized for what is perceived to be a part time working schedule, with the House reporting for duty about one of every 3 days a year and the Senate meeting only slightly more often.

But this part time schedule is actually designed to allow members to maximize their time in the district, where they are supposed to spend the balance of their time meeting with constituents.  As constituents, we should take full advantage of the recess calendar to build meaningful relationships with our federal representatives.   The following is a list of ways to connect with your member of Congress during recess periods and while Congress is in session.

  • Know Who Represents You. The first step in establishing a relationship with your elected representatives is to know who they are and how to reach them.  You can look up your member and find their offices’ contact information here: https://whoismyrepresentative.com/
  • Call their office. Generally speaking, this might be the easiest but is also the least effective method of communication.  Calls into members’ offices get logged as a position for or against a particular issue.  There are no supporting arguments relayed with your position and you will not get a response from the member.  The only time that calls into offices work is if they are done in mass, potentially encouraging a member who is on the fence.
  • Write them letters/ emails. For the activist with limited time, a letter or email can be very effective, especially if you have a unique story to tell.  When writing your letter, be sure to let your representative know you are an employer in his or her district and that a vote they are about to take not only affects your ability to run a successful business, but also effects your employees.  If appropriate, ask your employees to send letters of their own.  Some Congressional offices have a policy to respond to all received correspondence.  The response is almost always drafted by a staff member but includes language that is approved by the member.
  • Meet with their staff in the district. When I worked in the state offices for Senator Cornyn, we met with constituents all the time.  They came to our office; we attended their events; we got to know them.  These are the people we would often proactively call for their opinion on a topic.  They became opinion leaders for us in their particular field.  We would report back to the Senator the perspectives of the business owners, law enforcement, teachers, etc. back in the state.
  • Attend events. When you know that a Congressional recess is approaching, call the member’s office and ask if they have any public events you can attend.  Unfortunately, because the political climate has gotten so hostile, the public town hall meeting has become a thing of the past. But if you get to know the staff, they will likely be more forthcoming with you.  Conversely, if you’re a member of an association or chamber of commerce, ask them to invite your member to speak to your group.  Or, invite the member to visit your business and meet your employees.
  • Engage the members on social media. Have an issue that’s important to you?  Share an article on the topic and tag your member of Congress.  If they’ve already voted for or indicated support for your issue, be sure to thank them for doing so.  If you don’t know, just ask in your tweet.
  • Help the campaign. If you are inclined, attend a fundraiser or volunteer for your member’s campaign.   You’ll have to go to the member’s campaign website to get involved politically. That information can usually be found by Googling “John Smith for Congress” or “Jane Doe for Senate.”
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Michael Best Strategies Acquires Bottom Line Marketing & Public Relations

By
Michael Best Strategies
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Bottom Line

ACQUISITION EXPANDS STRENGTH IN STRATEGIC COMMUNICATIONS, MARKET RESEARCH AND COMPETITIVE INTELLIGENCE

Michael Best Strategies (Strategies) today announced that it has acquired the Milwaukee-based strategic communications firm of Bottom Line Marketing & Public Relations, Inc. and added its owner Jeffrey J. Remsik to its growing team of seasoned professionals.

“Jeffrey and his team are a perfect fit for the type of strategic business consulting our clients need and want.  We are excited to add such depth of expertise, especially in competitive intelligence, market research and marketing communications,” said Robert Marchant, president of Michael Best Strategies.  “Jeffrey is comfortable in the C-suite and is a trusted advisor to numerous senior business leaders. He has built a solid business over the past two decades, and we are excited about adding him to our team.”

Marchant noted that besides Remsik, two Bottom Line public relations professionals will join the Strategies team, former reporter and experienced senior PR counselor Ron Irwin; and Margaret Fritsch, who brings with her expertise in media relations, strategic communications and public affairs.

“It’s a good match. We add expertise and depth, and we share a culture that values being inquisitive, proactive and street-smart,” said Remsik. “We are excited to join the impressive, professional team at Michael Best Strategies. We’re in a stronger position to help clients achieve their strategic business objectives.”

Remsik has specialized in serving clients in healthcare, financial services and real estate development. He joins a growing list of accomplished business executives and strategy professionals who have joined Strategies in the past three years.

CMS Reimbursement Codes 2020

By
Lisa Wills
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CMS Reimbursement Codes 2020

Digital health companies and innovation-focused provider and payer systems cheered the recent Current Procedural Technology (CPT) code changes, revisions, and deletions that are on deck for implementation through the American Medical Association (AMA) on January 1, 2020.

With 394 changes, many of the codes will focus on providing reimbursement for routine practices surrounding e-health and televisits, such as reimbursement for patient-initiated digital communication through tools like patient portals, and codes to report self-measured blood pressure (99473, 99474).

The codes were primarily focused on promotion the integration of home-based services ‘that can be a significant part of a digital solution for expanding access to healthcare, preventing and managing chronic disease, and overcoming geographic and socioeconomic barriers to care’, according to AMA President Patrice A. Harris, MD, MA. The high volume of changes include 284 new codes, 71 deletions, and 75 revisions. New codes surround medical services initiated by digital communication from patients to clinicians (99421, 99422, 99423) and non-clinicians (98970, 98971, 98972).

Another area of focus is around health and behavior assessment and intervention services (96156, 96158, 96164, 96167, with add-on codes 96159, 96165, 96168, 96171).

The AMA also states that one of the most significant expansions to prior and current CPT codes was due to the need for codes to reimburse long term electroencephalographic (EEG) monitoring services which monitor the brain’s electrical activity, and are key in the diagnosis of epilepsy (95700-95726).

MBS Participates in 2019 Technology and the Law Symposium

By
Michael Best Strategies
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Symposium

Two weeks ago, Michael Best Strategies principal Sarah Helton participated on panels at the 2019 Technology and the Law Symposium, hosted by Michael Best and Friedrich and Duke University.  Sarah moderated the “DLT and Blockchain: After the Hype” session, which featured Bennett Collen of GoDaddy, Nathan George of the Sovrin Foundation, and David Nguyen of United Solutions.

At the event, attendees could sit in on numerous informative sessions hosted by seasoned Michael Best & Friedrich IP attorneys, healthcare leaders, and cutting-edge technology innovators. Michael Best & Friedrich hosts the symposium annually. This year’s event was headlined by keynote speakers Micky Minhas, who serves as Vice President and Chief Patent Counsel for Microsoft, and Timothy Wilson, Director of Patents for SAS Institute Inc. Other panels included:

  • The Latest on Cryptocurrencies and How They are Regulated
  • Additive Manufacturing
  • From the Mind of HAL: Protecting AI Generated Content & Ideas
  • The Current State & Future of the Medical Cannabis & Hemp Industries in the Tobacco Belt
  • Cybersecurity, DLT, and AI: Protecting Data & Databases in the US & Abroad
  • Drug Pricing in an Era of Personalized Medicine – The Role & Effect of Technology & Government Policy on the Price of Drugs
  • 2019 Patent Year in Review
  • Diversity & Inclusion: Women in Innovation

As always, Michael Best Strategies is proud of its relationship with Michael Best & Friedrich, and was pleased with the thoughtful dialogue and success of the Symposium.

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By
Michael Best Strategies
-
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Social Investing – Moving Quickly from Fad to Force for Change

By
Karen Timberlake
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ESSWI Logo

Trends in social investing were the focus of a lively panel discussion at this year’s 2019 Early Stage Symposium sponsored by the Wisconsin Technology Council.  Michael Best was a proud Platinum Sponsor of this year’s event.

The framing question for this panel was – can investors “do well” by seeking to invest in companies that are “doing good?”  The clear answer from our panelists – Yes! – backed up what national trend data have shown for some time.  Here are just a few of the proof points.

The Morgan Stanley Institute for Sustainable Investing released a study earlier this year that analyzed the overall performance of sustainable funds as compared to traditional funds.  The study looked at funds that prioritize companies’ performance across a range of environmental, social and governance metrics – identified by the shorthand “ESG.”  The punchline:  funds tracking ESG metrics are growing, and are doing every bit as well as traditional funds.

  • Morgan Stanley identified 144% growth in the number of ESG funds from 2004 to 2018.
  • Sustainable or socially responsible funds performed as well as, or better than, traditional funds over this same time period.
  • These funds tolerated economic downturns better than traditional funds. Notably, during the market turbulence of 2008, 2009, 2015 and 2018, sustainable funds lost significantly less value than did traditional funds.

In a similar vein, the Forum for Sustainable and Responsible Investment (US SIF) has tabulated a three-fold increase in US assets under management using socially responsible strategies between 2012 and 2018, including a 38% increase in just two years from 2016 to 2018.  By US SIF’s count, socially responsible strategies are now applied to invest one of every four dollars of total US assets under professional management.

Sustainable Investing Growth
Source: US SIF

These highlights – there is growing demand from investors for socially responsible investment opportunities; there is no tradeoff in financial performance; and in fact there may be some advantages – were born out in the comments of our four panelists.  We also had a great discussion of the advantages for companies that focus on positive environmental, social and governance practices above and beyond attracting investment. Panelists confirmed that companies that can attract socially responsible investment have a competitive edge with customers and employees.

As Amanda DoAmaral, founder of advanced placement exam resource Fiveable, said, “I’m not just building a company, I’m building a movement.”  Aaron Olson, co-founder of NovoMoto, echoed this ethic, emphasizing his company’s commitment to improving the lives of their customers by expanding access to environmentally sustainable electricity.

One of the challenges to matching socially responsible investors with companies like Fiveable and NovoMoto is the breadth and diversity of investor priorities and measures of positive social impact.  Investment manager Cindy Bohlen with Riverwater Partners, and social accelerator advisor Kathy Hoyt with Woronora  Advisors, emphasized the need for patience and open communication between investors and companies – whether startup or established – as they work to identify metrics that will both meet investors’ ESG or socially responsible goals and be meaningful and feasible for the company to track and report.  These open conversations about what to measure can also help investors see beneath the risk that the rush to promote ESG criteria may lead to “green-washing” or “purpose-washing” rather than measurement of real change in corporate practices.

Our astute audience pushed on the need for public policymaking that is aligned with the priorities of socially responsible investors, and dug into the details of how entrepreneurs DoAmaral and Olson were able to attract their first financial supporters.

It’s not time to declare victory for social investing just yet.  No doubt the debate over whose interests should be paramount in investors’ eyes – customers? employees? shareholders? – will continue.  There are still $3 invested without an ESG lens for every $1 that is.  That said, our panelists left no doubt that investments in companies with shared value missions can deliver real financial returns in ways that create tangible benefits for customers, employees, owners and shareholders, community partners, and the environment.

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MBS Sponsors Milwaukee Regional Intermodal Freight Summit

By
Michael Best Strategies
-
Rob Marchant

On Tuesday, November 5th, Michael Best Strategies, along with the MMAC and WMC, sponsored the Milwaukee Regional Intermodal Freight Summit at the We Energies Auditorium. Over 150 people attended the event.

This Summit brought together Wisconsin Secretary of Transportation Craig Thompson and senior officials from his department, leadership from WEDC and DATCP, manufacturers, and transportation companies from rail, trucking, logistics and shipping.

Rob Marchant, the President of MBS, led two panel discussions: “What’s Needed from the Business Community for Intermodal Service,” and “Vision for the Future of Intermodal in SE Wisconsin: Site Development, Infrastructure, Operations and Business Models.”

Rob and Michael Best Strategies were pleased with the level of interest in the event. After the event, Rob said, “I was thrilled to be invited to help moderate this Summit and see that there is so much interest in improving intermodal freight service in Wisconsin. For the economy to remain vibrant in Wisconsin, we need more reliable and cost-effective transportation methods for receiving and shipping goods across the country and around the world. Intermodal freight transportation hubs allow for the coordinated, efficient movement of goods, agricultural products,  and raw materials on trains, steamships, and trucks. Every dollar saved is a dollar that can be invested in new jobs and reduced costs for businesses and consumers.”

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Becky Miller Updike Appointed To Child Welfare Task Force

By
Michael Best Strategies
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BECKY MILLER UPDIKE TO HELP GROUP IMPROVE THE LIVES OF CHILDREN IN COLORADO

DENVER, CO – Michael Best Strategies announced today that Becky Miller Updike, Ph.D., a principal in its Denver office, has been appointed to serve on the Delivery of Child Welfare Services Task Force through the Colorado Department of Human Services.

“I am honored to have been appointed to serve on this task force,” Miller Updike said.  “I have spent the majority of my career working to improve the lives of children, and I remain committed to the well-being of all children across Colorado.  It is a very important time to prioritize these issues and I look forward to working with my fellow task force members as we discuss ways to help improve the child welfare system in our state.”

Miller Updike’s appointment by Michelle Barnes, the Executive Director of the Colorado Department of Human Services, will put her in a role with others who are working with counties in Colorado to help children and families who have experienced trauma, maltreatment and other challenging circumstances.  The Task Force was established by legislation in 2018 and works to provide quarterly updates and policy recommendations to the Joint Budget Committee, the Public Health Care and Human Services Committee of the House of Representatives and the Health and Human Services Committee of the Senate.

“Becky is a problem solver and a champion for children in Colorado,” said Rob Marchant, President at Michael Best Strategies.  “We are honored to participate in this important work and know that Becky will be a great benefit to the Task Force.”

Miller Updike joined Michael Best Strategies earlier this year and has focused her efforts on assisting the Colorado Association of Family & Children’s Agencies as Contract Executive Director.  She also helps other Michael Best Strategies clients with their unique government relations and public policy needs.

 

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