July 2000 News

Guidelines for Environmental Review Ready

On November 16, 1999, President Clinton signed Executive Order 13141. 64 FR 63169 (Nov. 18, 1999). The Order states that the United States is committed to a policy of ongoing assessment and evaluation of the environmental impacts of trade agreements, and in certain instances, written environmental reviews. The Order directs the Office of the United States Trade Representative (USTR) and the Council on Environmental Quality (CEQ) to oversee implementation of the Order, including the development of procedures pursuant to the Order, in consultation with appropriate foreign policy, environmental, and economic agencies. USTR and CEQ seek the written views of the public concerning the issues the agencies should consider with respect to implementing the Order. Read the full Federal Register notice (no longer available) July 2000 USTR Federal Register Notices (no longer available)

OECD Anti-Bribery Convention: French National Assembly Adopts Implementing Legislation

On June 20, the National Assembly of France adopted legislation to implement the OECD Anti-Bribery Convention. The final text, adopted after a brief discussion, is that which had been agreed by a joint National Assembly-Senate committee on March 21 . That joint committee had deleted the ""grandfathering"" provision in the original draft text, which would have exempted post-statute bribes tied to contracts concluded prior to french implementation of the convention, as well as permitting the tax deductibility of such bribes. The French senate had passed the implementing bill on April 4. The June 20 vote in the National Assembly completes the parliamentary implementation process. The new tax code provision (article 39, paragraph 2) ends the tax deductibility of bribes as of the entry into force of the OECD Anti-Bribery Convention. The next and final step in long-running French process will be deposit of the instruments of ratification with the OECD.

Thai Tariff Reductions

On July 4, 2000, the Government of Thailand announced further tariff reductions on 542 products, including primary raw materials, intermediate goods, capital goods, and some other goods. The stated purpose of the reductions is to boost the manufacturing and export cycle by reducing production costs. The reductions were in effect as of july 5. The last round of Thai tariff reductions was in August of 1999 and was also announced as an economic stimulus measure. Categories

OPIC Passes into Law in Panama

The recently signed U.S.-Panama OPIC (Overseas Private Investment Corporation) Agreement provides OPIC with coverage to operate in Panama for the first time in 30 years. The Panamanian National Assembly unanimously passed final approval of the agreement and agreed to ratify implementing legislation. The agreement will provide a way around a constitutional legal problem - holding a lien on real estate as collateral in the event of default on a OPIC supported project - that has up until now restricted OPIC from operating in Panama. Opic web site

Hungary Extends Tariff Waiver on Purchase of Aircraft by State Carrier Malev

On Monday, June 26, a representative of the Ministry of Transport and Water Management announced that the Government of Hungary will extend indefinitely the current tariff waiver on the purchase of aircraft and aircraft parts by state- owned carrier Malev. This waiver has been in effect since 1997 and was due to expire at the end of 2000. It applies to aircraft of any origin, European or American. EU tariffs range from zero to two percent on these items, while for U.S. aircraft, parts and engines tariffs are 12.1 percent, 7 to 12 percent and 8.9 percent, respectively. The tariff waiver has effectively cancelled this differential.U.S. parts must be used within two years of purchase or else they are taxed according to the existing schedules. The current Malev fleet consists of 13 Boeing 737, two Boeing 767, six Fokker 70 and six Tupolev TU-154 aircraft.

Korea: Liberalized Testing Procedures for Imported Cosmetics Offer Increased Opportunities for U.S. Exporters

Under the regulations which went into effect early this year, Korea's testing procedures for imported cosmetics have been drastically streamlined. Under the far simpler regulations, the Korean government now allows self-testing by the manufacturer, once the facility has been inspected by the Korean Food and Drug Administration. The Korean government also has abolished its annual testing requirement for imported cosmetics. As a result of these innovations by the Korean authorities, U.S. exporters can look forward to additional cosmetics business opportunities throughout Korea's retail sector.