October 2000 News

Senate Approves Ten Bilateral Investment Treaties

United States Trade Representative Charlene Barshefsky welcomed the Senate's approval on October 18, 2000 of ten Bilateral Investment Treaties (BITs) that were negotiated during the Clinton Administration. The treaties are with Bahrain, Jordan, Bolivia, El Salvador, Honduras, Lithuania, Croatia, Uzbekistan, Azerbaijan, and Mozambique. An amendment to a BIT with Panama was also approved. A BIT accords U.S. investors, both on and after investment, treatment, in most sectors, on terms no less favorable that that accorded to domestic or third-country investors, in most sectors. It also entitles investors to the free transfer of capital, profits and royalties, freedom from certain performance requirements that distort trade and investment flows, access to international arbitration in the event of disputes with the host government, and internationally recognized standards for expropriation and compensation.

Ireland: Honored for IPR Reform/E-commerce Initiative

In recognition of the Irish Government's (GOI) efforts to promote e-commerce and create a business-friendly environment for software development, Ireland has been honored as the first European recipient of the Business Software Alliance's (BSA) "cyber champion" award. BSA President Robert Holleyman said the new Irish IPR legislation, by introducing strong deterrent penalties for copyright infringements and authorizing rightsholders to obtain court-ordered civil search warrants to investigate allegations of software piracy, makes Ireland a model for the EU, "if not the world." The BSA also singled out the GOI's e-commerce law, which facilitates e-commerce by recognizing electronic signatures. Ahern, in his remarks accepting the award, acknowledged the U.S. government's role in "helping Ireland" to do the right thing in reforming its IPR legislation. Ahern also announced that the GOI is launching an initiative to ensure that only legally purchased and produced software is used in GOI offices, which is a victory for the BSA and the U.S. government. The GOI had been hesitant to issue a government order, similar to President Clinton's Executive Order mandating a similar "zero-tolerance" policy for pirated software in U.S. government offices. Meanwhile, Ahern added that final enactment of the IPR legislation is on track for mid-November.

Singapore: Surprise Format for Third Generation (3G) Mobile Telecom Licenses Announced

Singapore Minister for Communications and Information Technology Yeo Cheow Teong, announced October 20 modalities for the award of 3G mobile telecom services licenses in Singapore. in a surprise move, the GOS opted for an open auction of the licenses, with the minimum bid set at 150 million Singapore Dollars (US $90 million). Four licenses (valid for twenty years) will be awarded. Each of the four successful licensees will be entitled to an equal amount of bandwidth, and they will also be allowed to resell all or part of their 3G spectrum to others.

Oman Signs WTO Accession Protocol

After four years of negotiation, oman's WTO accession is a reality. Minister of Commerce and Industry Maqbool bin Ali Sultan signed the Sultanate's accession protocol in Geneva on October 10. Maqbool said Oman is looking forward to working closely with other members in the different areas of WTO endeavors, especially in the effective implementation of the Uruguay round agreement and the ongoing negotiations on agriculture and services. In a statement to the Omani media, Maqbool explained that the delay in Oman's accession was due to its firm and persistent stand regarding issues such as maintaining Oman's independence in important economic decisions and protecting infant industries, new services, and agricultural produce. Oman was successful in convincing the WTO and the negotiating partners on many issues, to the Sultanate's benefit, he said.

Italy Passes Bill to Ratify OECD Antibribery Convention

On September 19, 2000, the Italian Senate passed a bill to ratify and implement the OECD convention, along with 3 other European Union instruments, thus making Italy the final G7 member to enact legislation implementing the convention. Upon publication in the official gazette, expected sometime in October, the law will enter into force domestically and Italy will thereafter deposit its instrument of ratification with the OECD. Legislation imposing non-criminal sanctions for legal persons, which will include fines up to 1.5mil euro and ineligibility to participate in certain programs, will enter into force 8 months thereafter.

Statement by the President: Countries Eligible for Trade Benefits

On October 2, the following statement by President Clinton was released: I am pleased to release today a list of countries eligible for trade benefits under the Caribbean Basin Initiative and African Growth and Opportunity Act legislation enacted last spring. By expanding our trade relationship with 34 Sub-Saharan African countries and 24 Caribbean Basin countries, we will help promote economic development, alleviate global poverty, and create new economic opportunities for American workers and businesses. This action truly marks a new era of stronger relations between the United States and our friends in the Caribbean, Central America, and Africa. List of countries

Mexico Implements Cash Deposit Requirement for Goods Subject to Reference Prices

On October 1, 2000, the Government of Mexico (GOM) implemented new regulations affecting goods subject to reference prices (precios estimados). Instead of posting a bond to guarantee the difference in duties and taxes if the declared value of an imported good is less than the GOM's official reference price, Mexican importers now must deposit the difference in cash at a designated Mexican financial institution or arrange one of two alternative sureties (a trust or line of credit). The GOM first published these regulations in the December 31, 1998 edition of the Diario Oficial. They were scheduled to take effect on April 1, 1999, but were postponed several times. Questions and comments about the regulations should be directed to Chris Moore in the Department of Commerce Office of NAFTA and Inter-American Affairs