FCC Industry Analysis

Brazil Diesel Subsidy and Increased Oil Export Tax

Brazil has published Provisional Measure No. 1,340/2026, authorizing an economic subsidy for diesel oil sales and increasing export taxes on crude petroleum oils and diesel oil. The subsidy is R$0.32 per liter and is effective until December 31, 2026, while export taxes are set at 12% for crude oil and 50% for diesel oil.

USTR Investigates 16 Economies for Manufacturing Overcapacity and Forced Labor

The U.S. Trade Representative (USTR) has initiated Section 301 investigations into manufacturing overcapacity in 16 economies and the failure of 60 economies to enforce prohibitions on goods produced with forced labor. Written comments are due by April 15, 2026, with public hearings to follow.

Treasury, IRS Guidance on Prohibited Foreign Entity Rules

The Treasury Department and IRS released Notice 2026-15 providing initial guidance on Prohibited Foreign Entity (PFE) Rules. The notice clarifies how to calculate the material assistance cost ratio (MACR) for certain energy-related tax credits, determining if a taxpayer received material assistance from a PFE.

US Drafts AI Chip Export Controls

The US is reportedly drafting new export control regulations for AI chips, which would implement a tiered licensing system based on computing power. These draft rules aim to position the US as a gatekeeper for the global AI industry and could impose significant pre-clearance requirements for high-volume exports.

USTR Launches Section 301 Investigations on Forced Labor Imports

The Office of the U.S. Trade Representative (USTR) has initiated Section 301 investigations into 60 major trading partners to determine if they are effectively banning imports of goods produced with forced labor. The USTR is seeking public comment and will hold hearings on the matter.

USTR Probes 17 Countries for Excess Manufacturing Capacity

The Office of the U.S. Trade Representative (USTR) has initiated Section 301 investigations into 17 countries for structural excess manufacturing capacity and production. The probe aims to address potential unfair trade practices and could lead to the imposition of tariffs.

Supreme Court Ruling on IEEPA Tariffs Impacts Duty Refund Process

The Supreme Court has ruled against the use of the International Emergency Economic Powers Act (IEEPA) for enacting tariffs. While the ruling entitles importers to refunds, a specific process is still being developed by U.S. Customs and Border Protection (CBP) and the Court of International Trade (CIT). CBP is working on an ACE functionality to streamline refunds, with a target deployment in 45 days.

Third-Party Arbitration Funding: Turmoil and Growth in 2025

A March 2026 article discusses the turbulent year for third-party arbitration funding in 2025, noting industry consolidation and a significant fraud suit. Despite challenges, the sector saw continued international arbitration claims, with 7% of new ICSID cases in 2025 involving funders.

Yukos Enforcement: ICSID vs. New York Convention Award Approaches in England

The English Commercial Court, in Hulley Enterprises Ltd & Ors v. The Russian Federation, granted enforcement of ICSID awards but declined to enforce costs and interest-on-costs components of New York Convention awards related to the Yukos arbitrations. This decision highlights differing judicial gatekeeping approaches for ICSID and New York Convention awards in England.

EU Proposes Industrial Accelerator Act with "Made in EU" Requirements

The European Commission has proposed the Industrial Accelerator Act (IAA) to bolster the EU's industrial base and boost demand for EU-manufactured products. The act introduces "Made in EU" requirements across strategic sectors, aiming to reduce dependencies and increase manufacturing's share of EU GDP.