In February 2021 and pursuant to Executive Order 14017, “America’s Supply Chains,” President Joe Biden directed a review across all federal agencies to address vulnerabilities in the supply chains for critical goods. See Update of February 25, 2021. Subsequent federal agency reviews and a White House report found five key U.S. supply chain vulnerabilities, acknowledged the need to strengthen international trade rules, and recommended steps to strengthen supply chain resilience, including increased international coordination. See Update of June 11, 2021.  The Government Accountability Office (GAO) recently released a report, “Supply Chain Resilience – Agencies Are Taking Steps to Expand Diplomatic Engagement and Coordinate with International Partners,” highlighting additional federal government steps to expand diplomatic engagement and coordination with trade partners to strengthen supply chains.

The report notes, as of October 2022,  that “the agencies have initiated over a dozen dialogues, working groups, forums, and other channels to coordinate with allies and partners on supply chain resilience. The agencies have coordinated with allies and partners to develop supply chain principles and plans for action to strengthen supply chain resilience. These efforts aim to address challenges including disruptions from the pandemic and war in Ukraine.” Among the issues covered in the report, the Office of the U.S. Trade Representative (USTR) found that “current U.S. trade agreements generally were not designed to address supply chain disruptions or build resiliency,” but instead have “historically focused on trade liberalization and maximizing economic efficiency.” While trade agreements and trade preference programs “can serve as tools for addressing supply chain resiliency concerns,” the USTR is attempting to identify ways to use free trade agreements to strengthen collaboration and cooperation on supply chain challenges. However, the USTR noted that this may require renegotiating current agreements, negotiating new agreements, or modifying trade preference programs.

The report also notes that the Departments of Commerce and State, as well as the USTR, continue to address data collection challenges that will assist in diplomatic coordination on supply chain resilience. In their FY 2023 budget request, these agencies have requested authorization for additional personnel and increased funding for these efforts.

Photo of Scott E. Diamond** Scott E. Diamond**

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor…

Scott is a senior policy advisor with more than 25 years’ experience with the legislative and regulatory processes involved in international trade policy, remedies and enforcement. This includes working with clients on matters involving export controls, economic sanctions, human rights and forced labor compliance, corporate anti-boycott and antibribery compliance, national security investigations, and foreign direct investment in the United States.

**Not licensed to practice law.

Photo of David M. Schwartz David M. Schwartz

David is the leader of Thompson Hine’s International Trade practice group and a member of the firm’s International Committee. He advises clients on the risks and opportunities presented by U.S. international trade laws and regulations and international trade agreements. He focuses on antidumping…

David is the leader of Thompson Hine’s International Trade practice group and a member of the firm’s International Committee. He advises clients on the risks and opportunities presented by U.S. international trade laws and regulations and international trade agreements. He focuses on antidumping (AD), countervailing duty (CVD) and safeguard litigation, international trade policy, and cross-border compliance issues affecting goods, services, technology and investments that involve transportation, customs, export controls, economic sanctions, anti-boycott and anti-bribery laws and regulations.

Photo of Francesca M.S. Guerrero Francesca M.S. Guerrero

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some…

Francesca counsels clients on compliance with export controls, sanctions, import regulations, human rights and forced labor, and the FCPA and antibribery laws. She works closely with companies to develop tailored compliance programs that fit their specific needs, and routinely advises clients on some of their most challenging international transactions, involving dealings in high-risk jurisdictions or with high-risk counterparties. Francesca also counsels companies through all phases of internal investigations of potential trade and antibribery violations and represents companies across industries before related government agencies.

Photo of Samir D. Varma Samir D. Varma

Samir advises multinational corporations on export controls, economic sanctions and customs, and counsels individuals and corporations on the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws. He represents clients in enforcement actions before U.S. regulatory agencies and conducts corporate internal investigations.