April 2002 News

2002 Special 301 Announcement

On April 30, USTR announced the results of the annual review of foreign countries' intellectual property protection (IP) under the "Special 301" provisions of the Trade Act of 1974. This year's "Special 301" annual review of intellectual property protection in 72 countries resulted in the U.S. Government placing 15 trading partners on the Special 301 "Priority Watch List" and 33 on the "Watch List". The Special 301 Report addresses significant concerns in such trading partners as the Andean Community, Brazil, Colombia, Egypt, India, Hungary, the Dominican Republic, Kuwait, Lithuania, the Philippines, Russia, Saudi Arabia, Taiwan, Turkey, and Uruguay. Ukraine was maintained as a "Priority Foreign Country" due to its persistent failure to take effective action against optical media piracy. No new WTO dispute settlement cases were initiated as a result of the review. In this year's review, USTR devoted special attention to the growing issue of Internet piracy, the ongoing campaign to reduce production of unauthorized copies of "optical media" products, proper and timely implementation of the WTO TRIPs Agreement, and ensuring that government ministries only use authorized software. (Links no longer available) View the report Read the transcript

Mexico: Proposed Standards (April 15 to 26, 2002)

View recently proposed and enacted Mexican Government standards

President Calls for Free Trade Agreement with Morocco

Remarks by the President and His Majesty King Mohammed VI of Morocco in an Oval Office photo opportunity.

View the White House Press Release

Request for Comments: WTO Dispute Settlement Regarding Telecommunications Trade Barriers in Mexico

The Office of the United States Trade Representative (``USTR'') is providing notice that, on April 17, 2002, the Dispute Settlement Body (``DSB'') of the World Trade Organization (``WTO'') established a dispute settlement panel to examine U.S. claims regarding certain Mexican Government measures affecting basic telecommunications services and the consistency of such measures with Mexico's commitments under the General Agreement on Trade in Services (``GATS''). The United States requested establishment of a panel on February 13, 2002. USTR invites written comments from the public concerning the issues raised in this dispute.

View the Federal Register Notice

Under Secretary of Commerce Grant Aldonas Testifies on Bush Trade Priorities

Grant Aldonas, Commerce Under Secretary for International Trade, in testimony before the U.S. Senate Committee on Governmental Affairs, stressed that passage of the proposed Trade Promotion Authority (TPA) is a critical tool in expanding economic opportunity and creating jobs for Americans. Aldonas said the Bush Administration will pursue an aggressive trade agenda that will open new markets for America’s products while working to ensure that our trading partners comply with their agreements and that international competition is fair.

View the DOC Press Release

China: Secretary Evans and Minister Shi Guangsheng Co-Chair JCCT Meeting

On April 23, Commerce Secretary Donald Evans and China Minister of Foreign Trade and Economic Cooperation Shi Guangsheng co-chaired a meeting of the Joint Commission on Economic Cooperation and Trade (JCCT), a forum for addressing issues critical to continued economic cooperation between their two countries. Among the achievements of the JCCT session were agreement to proceed with training exchanges on WTO responsibilities and increased private-sector participation in the work of the JCCT. The U.S. participants expressed concerns about intellectual property rights protection, new regulations in China on private express delivery services, export control end-use visits, the sanctity of contracts and issuing of insurance licenses to American companies. Chinese participants raised Section 201 safeguards on steel imports to the U.S., high technology export controls, anti-dumping procedures and the General System of Preferences (GSP). Although the forum made progress in many areas, differences remain. At the conclusion of the meeting, both sides agreed to continue discussions on these and other unresolved issues. Both sides also agreed to expand the JCCT framework through additional contacts at the sub-cabinet level and through regular telephone discussions between Evans and Shi. Secretary Evans is accompanying 15 American business leaders in the first U.S. business development mission to China since it acceded to the WTO. While in Beijing, the American delegation met with Chinese and American business leaders and government officials, including President Jiang Zemin. View Commerce Department press release (no longer available)

United States and Argentine Negotiators Resolve Intellectual Property Rights Issues

United States and Argentine officials finalized the elements of a joint notification to the WTO regarding intellectual property matters. In the notification, Argentina clarified how certain aspects of its intellectual property system, such as those related to its import restriction regime, operate in conformance with the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs). In addition, Argentina agreed to amend its patent law to provide protection for products obtained from a process patent and to ensure that preliminary injunctions are available in intellectual property court proceedings, among other amendments. Regarding the remaining issues, including that of data protection, the United States retains its right to seek resolution under the WTO dispute settlement mechanism. This wraps up three years of work done in WTO dispute settlement consultations and allows the parties to implement the progress made during this period.

Commerce Assistant Secretary Lash Urges Greater Market Access and Cooperation During APEC Automotive Dialogue Address

In his opening remarks at the Asia Pacific Economic Cooperation (APEC) Automotive Dialogue in Singapore on April 17, Commerce Assistant Secretary for Market Access and Compliance William Lash strongly encouraged expeditious resolution of market access issues facing American and foreign auto manufacturers and their workers. Mr. Lash expressed the U.S. Government's hope that the Automotive Dialogue "... can become the forum to resolve trade frictions by working together to eliminate trade barriers in an orderly fashion." The Assistant Secretary cited the case of Korea–which "sells more cars to the U.S. in one day than the United States' automakers sell to Korea in one year"--as "perhaps the most egregious example of the unfair trade environment facing America's auto manufacturers and workers."

View Market Access and Compliance press release

Singapore: Commerce Assistant Secretary Lash Seeks Level Playing Field for U.S. Textile Workers

During April 17 meetings, Commerce Assistant Secretary for Market Access and Compliance Lash urged Singapore Government officials to take greater steps to prevent illegal textile shipments to the United States. Mr. Lash said, "Countries are hurting America's textile workers by illegally shipping their textile and apparel goods through Singapore, giving the appearance their goods originated in Singapore." The Assistant Secretary "expect(s) Singapore will take the necessary steps to prevent the harm caused to America's textile workers by countries who abuse Singapore's world-class shipping and port facilities."

View Market Access and Compliance press release

Commerce Under Secretary of Commerce Aldonas Leads U.S. Delegation to Fourth High-Level Meeting on Steel

Under Secretary of Commerce for International Trade Grant Aldonas will lead the U.S. delegation to the Fourth High-Level Meeting on Steel at the OECD in Paris April 18-19. The meeting with major steel-producing countries will involve discussions on facilitating the reduction or closure of inefficient excess capacity in the global steel industry and ways to eliminate market distorting practices. Under Secretary Aldonas will be joined by Faryar Shirzad, Assistant Secretary of Commerce for Import Administration. The OECD discussions are part of the Bush Administration's three-pronged steel strategy to restore market forces to the global steel market and eliminate practices that harm the domestic steel industry and its workers.

United States-European Commission Agreement on Guidelines for Increased Regulatory Cooperation, Transparency

On April 12, the United States and the European Commission announced that they have developed guidelines designed to promote more effective US-EU regulatory cooperation and better access to their respective regulatory development proceedings. Commerce Secretary Evans, USTR Zoellick, EU Commissioner for Enterprise and the Information Society Erkki Liikanen, and EU Trade Commissioner Pascal Lamy welcomed the Guidelines as an important mechanism for promoting a more positive US-EU trade agenda. Completion of the "Guidelines on Regulatory Cooperation and Transparency" has been a priority initiative since 1999. Questions on the guidelines can be directed to Lori Cooper in the Commerce Department at (202) 482-5373. View USTR press release(No longer available)

Mexico: Proposed Standards (April 1 to 12, 2002)

View recently proposed and enacted Mexican Government standards

Zoellick Praises China's Support for Globalization, Comments on US-ASEAN FTA

While in Beijing on April 9, USTR Zoellick praised China's present leaders for embracing globalization and called on China to work with the U.S. on furthering it around the world. Zoellick commented, "Our goal now should be to work together to assure that China's [WTO] commitments are implemented faithfully and on schedule, and to assure that China, in turn, can utilize WTO rules to prevent other countries from closing their markets unfairly to Chinese goods." The United States wants to work with China to ensure that its membership in the WTO can benefit everyone, Zoellick said. View text: USTR Zoellick Praises China's Support for Globalization Zoellick also attended the April 4-5 US-ASEAN Economic Ministers' dialogue in Bangkok, where the participants discussed the US-ASEAN Business Council's proposal to take steps toward the creation of a U.S.-ASEAN free trade area. At an April 5 press conference, Zoellick noted that the ministers "were all interested in having further discussions with our business communities on that topic..." Although he said it is "far too premature to talk about road maps" with regard to creating such a free trade area, Zoellick suggested that deepening the U.S. economic relationship -- and moving towards freer trade-- with all the countries in the region would be steps in the right direction. Zoellick also said he expected the U.S.'s free trade agreements with Singapore and Chile to be finalized "in a matter of months." View excerpts: USTR Reports on Free Trade Agreements in Southeast Asia

U.S. Government Assistance in Fighting Transnational Corruption

During a recent speech, Eleanor Roberts Lewis, Chief Counsel for International Commerce at the Commerce Department, discussed the assistance the U.S. Government (e.g., Commerce Department, Justice and State Departments, and Securities and Exchange Commission) can provide to U.S. companies which are faced with problems related to international commercial bribery. In remarks to the American Bar Association's Forum on the Foreign Corrupt Practices Act and the OECD Convention, Lewis outlined how companies can get assistance in performing due diligence so as to better avoid potential problems under the Foreign Corrupt Practices Act; how companies can get general guidance or counseling about the FCPA; and what companies can do if they believe a foreign competitor is seeking to obtain or has obtained a contract through bribery. For more information on bribery, or to report a bribery complaint, see the TCC's Bribery Reports Page

View text of Lewis speech

Canada's New 10-Digit Harmonized Tariff System Number Requirement

Effective May 1, 2002, the Canada Customs and Revenue Agency will require the correct 10-digit Harmonized System (HS) number on commercial invoices before certain commercial shipments can be released. This requirement will apply to all paper and electronic Release on Minimum Documentation and Pre-Arrival Review System releases valued at CAN$1,600 or more. The 10-digit HS number will not be required for the NAFTA certificate of origin. The Customs Notice 410m that outlines the requirement in detail and provides Canadian contact information can be found at http://www.ccra-adrc.gc.ca/E/pub/cm/cn410eq/README.html (no longer available) Companies should be aware that shipments may be delayed and penalties may be imposed on the importer for not using the correct tariff 10-digit HS number. Canada implemented an Administrative Monetary Penalty System (AMPS) in December 2001 that largely replaces the use of seizure and forfeiture provisions for technical infractions. Seizure and ascertained forfeiture will only be used for the most serious offenses. More information about AMPS at a glance can be found at http://www.ccra-adrc.gc.ca/customs/general/amps/menu-e.html (no longer available). U.S. exporters are encouraged to work with their Canadian importers and brokers to identify the correct 10-digit HS number. In addition, Canadian 10-digit HS numbers can be found at http://142.221.110.166/services/twiz2002/twiz2002e.cfm (no longer available). Companies can get more details, including information about penalties, at http://www.ccra-adrc.gc.ca/customs/general/amps/snapshot-e.html (no longer available)

Mexico Publishes NOM Agreement

On March 27, 2002, the Government of Mexico published in its Federal Gazette a new version of the document known as the NOM Agreement (Acuerdo NOM), which became effective on April 1, 2002. The NOM Agreement is the official document that lists products by harmonized tariff system (HTS) code number and the corresponding mandatory standard, known in Mexico as Norma Oficial Mexicana (NOM). Proof of compliance with NOMs is one of the requirements to import/export products into and out of Mexico. Customs officials in Mexico use this NOM Agreement to demand proof of compliance at the border. Not all HTS codes have to comply with NOMs. In addition to this NOM Agreement, there are a number of official agreements that identify HTS codes under the jurisdiction of government secretariats other than the Secretariat of the Economy. These other secretariats can impose requirements to import and export products covered by the HTS codes listed in their corresponding agreements. View Spanish-language version of NOM agreement (PDF) - (no longer available)

National Trade Estimate Report for 2002 Released

On April 2, USTR released the 2002 National Trade Estimate (NTE) Report on Foreign Trade Barriers to U.S. exports. The NTE includes a comprehensive list of unfair trade practices and barriers to American exports of goods, services, and farm products. It covers 55 major trading partners in each region of the world and profiles policies restricting market access, as well as deficiencies in intellectual property rights protection and investment barriers. The NTE also notes many examples where countries have reduced or eliminated trade barriers described in earlier reports. According to USTR, this year's report notes the increased use of non-tariff barriers as a strategy to hamper trade; the persistence of trade barriers affirms the need for the United States to remain actively engaged on multiple fronts. The trade barriers also underscore the importance of the new round of multilateral trade negotiations, which provide an opportunity for governments to reduce, and eventually eliminate, barriers to trade.

India Legalizes Internet Telephony

Fulfilling a key economic reform commitment, the Indian Government legalized Internet telephony effective April 1. Industry groups such as the National Association of Software and Services Companies had long complained that, even though the ban on Internet telephony was unenforceable, it had acted as a deterrent to commercial use of this cheaper communications alternative. The new guidelines allow PC-to-PC communications within India, and PC to telephone (if the phone is outside of India). Telephone to telephone communication over the Internet remains illegal, however. There are also other significant limits to the legalization of Internet telephony, such as limiting only ISP's to offering Internet telephony, and only within their service areas.

Mexico: Proposed Standards (March 18 to March 29, 2002)

View recently proposed and enacted Mexican Government standards