Following lots of legislative uncertainty, Brazil has now formally enacted the country’s first general data protection law, Lei Geral de Proteção de Dados, or “LGPD.” While administrative sanctions do not go into effect until August 1, 2021, individuals and public prosecutors can now bring claims for losses and damages. Indeed, at least one public civil action has already been filed. LGPD is the first comprehensive general data protection law in Latin America. It was modeled after the EU’s GDPR. While there are many similarities, LGPD does introduce new concepts. Below are some of the key elements to keep in mind. Continue Reading
Hiring employees does not usually call to mind international trade compliance obligations. However, together U.S. export controls and anti-discrimination laws create a web that is overlooked or misunderstood by many types of employers of all sizes across many industries. Anti-discrimination laws prohibit unlawful citizenship status restrictions when hiring, and U.S. export controls prohibit disclosing controlled information to foreign nationals without authorization. Together, these laws limit acceptable job descriptions and hiring practices. Continue Reading
On June 18, 2020, the U.S. Supreme Court ruled that the U.S. Department of Homeland Security (DHS) decision in 2017 to rescind the Deferred Action for Childhood Arrivals (DACA) program violated the Administrative Procedures Act (APA) because it was implemented without the required Notice and Comment and without publication of a final rule that articulates the reasonable basis for the agency’s actions. As such, the Court ruled that DHS’s action was arbitrary and capricious. Continue Reading
Relief on Substantial Presence and Treaty Day-Count Tests.
On May 30th, the IRS issued Revenue Procedure 2020-20 which provides non-U.S. individuals present in the U.S. some limited relief from the day-count tests for U.S. tax residency and for eligibility for certain treaty benefits. The relief comes in the form of the “COVID-19 Medical Condition Travel Exception”. The name of the exception is a misnomer because individuals need not have had any medical condition (including the COVID-19 virus) to claim its benefits. Continue Reading
On June 22, 2020, the White House announced an extension and expansion of Proclamation 10014, which was originally announced on April 22, 2020 and restricted the issuance of and entry on immigrant visas. The new visa ban expands the restrictions to certain non-immigrant categories. Continue Reading
The US Federal Reserve has confirmed in its Main Street Loans frequently-asked-questions-faqs about the Main Street lending program (the “FAQ”) that US subsidiaries of foreign companies can be eligible borrowers under the various loans available under the program so long as they otherwise meet the other conditions to eligibility for the loans. Continue Reading
On May 22, 2020, the Mexico Committee of the ABA – Section of International Law published a Special Edition Newsletter regarding the Legal Impact of COVID-19 in Mexico. As the Co-Chair of the Mexico Committee of the ABA – Section of International Law, I worked with the ABA Mexico Committee to get this publication out in a timely manner. The intention for this special edition is to serve as a resource that provides a general understanding of the legal aspects and impact in Mexico of COVID-19 in each of the areas of law that we covered. Continue Reading
- The United States-Mexico-Canada Agreement (USMCA) provides for financial and digital trade regulations that harmonize the treatment of fintech companies.
- North American companies leveraging digital assets for payments should consider strategic regional opportunities available under the new USMCA fintech Framework.
- The USMCA Parties (member countries) continue to license fintech companies using cryptocurrency and create regulatory sandboxes to incentivize experimentation with the new technology under relaxed regulatory conditions.
On May 13, 2020, Sheppard Mullin co-sponsored a webinar hosted by the United States-Mexico Chamber of Commerce involving Mexico’s economic outlook and the impact on the maquiladora industry. Below are some interesting take-aways from the program.
Sergio Luna, Director of the Department of Economic Research and Chief Economist at Citibanamex, explained that notwithstanding the global recession we are experiencing, the Mexican peso is projected to appreciate towards the end of 2020. However, because it will take time to recover from the recession, the GPD growth for Mexico is projected to be at -9% for 2020 but is expected to reach approximately 4.8% in 2021.
Luna also discussed the implications for the labor market, including the unemployment rate, which is expected to increase to 6.3% in 2020 from 3.5% in 2019. Lastly, he indicated that we can expect to recover over 50% of jobs lost in 2020 by the end of 2021. Continue Reading
The Small Business Administration (“SBA”) in its implementation of the CARES Act just released an updated loan application form for borrowers who want to avail themselves of Title I – Paycheck Protection Program (“PPP”) loans. This form may be found here. Continue Reading