January 2002 News

United States and Hungary Sign Comprehensive Trade Package

On January 30, the United States and Hungary signed an agreement in which Hungary agreed to reduce or suspend tariffs on $180 million worth of key U.S. agricultural and industrial exports annually, beginning in April 2002. In Washington, USTR Zoellick praised the agreement, noting that its implementation would "establish a more level playing field for U.S. exports to Hungary." In light of Hungary's commitments, the United States intends to continue its support for Hungary's participation in the U.S. Generalized System of Preferences (GSP). The U.S.G. delegation that negotiated this agreement included the Commerce Department's Market Access and Compliance Hungary desk officer. View USTR press release(no longer available)

Release of Chinese-Language Version of WTO Accession Protocol

Xinhua reported that, on January 25, the National People's Congress issued the Chinese-language version of China's WTO Protocol of Accession. The English-language version of China's WTO accession documents has been available through the Ministry of Foreign Trade and Economic Cooperation's (MOFTEC) website. English-language versions of China's WTO accession agreement can be viewed at here or off-site.

Secretary Evans Announces Textile Working Group

On January 25, Commerce Secretary Don Evans announced the formation of an interagency Textile Working Group, which will, according to the Secretary, "make sure that we follow up on the commitments we agreed to in advance of the TPA vote." The Working Group will have several subgroups covering issues including trade agreement negotiating objectives, compliance and enforcement. Secretary Evans stated, "Both the President and I are committed to doing what it takes to ensure that this industry can compete in world markets."

USTR Extends Section 301 Investigation on Canadian Wheat

On January 18, USTR Zoellick announced an extension of the United States' investigation of Canadian wheat marketing practices. The investigation was extended from January 22 until February 15. Ambassador Zoellick stated that the investigation was extended to process the large volume of responses received. View the USTR press release (no longer available)

U.S. Imposes $75 Million in Tariffs on Ukraine over Insufficient Copyright Protection

USTR announced January 23 that it is placing prohibitive tariffs on $75 million worth of Ukrainian exports because of the Ukrainian Parliament's continued failure to enact legislation cracking down on sound recording and optical media piracy. The sanctions, which will require the payment of 100 percent duties on imports of Ukrainian metals, footwear, and other products, will offset U.S. government estimates of the amount of annual damages to the U.S. economy caused by optical media piracy. USTR Zoellick noted, "In the U.S.-Ukraine Joint Action Plan adopted in June 2000, and in a December 2001 letter, the Ukrainian government pledged that by the end of 2001 it would pass adequate legislation to stop the unlicensed production of optical media products. It has not met this deadline, which is why the United States is taking this action..." View USTR press release (no longer available)

Russia Cuts Import Duties

Russia put into force a new customs tariff from January 1, 2002 that changed import duties on about 140 types of products, 90 percent of which were lowered. Last year, in a similar action, the Russian State Customs Committee standardized, unified and lowered import duty rates on thousands of commodities. Customs tariffs were divided into four bands of 5 percent, 10 percent, 15 percent, and 20 percent, but certain commodities continue to be regulated through seasonal duties and quotas. Among the most significant new cuts are duties on audio and video equipment, from 20 percent to 15 percent, a number of fruits and vegetables, from 15 percent to 10 percent, and vitamins, from 15 percent to 10 percent. Also reduced were tariffs on single bucket loaders, from 10 percent to 5 percent, and ships and other vessels, from 20 percent to 10 percent. At the same time, the Customs Committee adjusted the classification on some 25 percent of the 11, 000 types of goods contained in the Russian tariff code. These modifications, combined with the country's efforts to improve its customs laws and regulations, are meant not only to increase revenues collections for the national budget but also to bring it in line with the WTO.

Favorable Central American Reaction to Proposed Free Trade Agreement with U.S.

Initial Central American reaction to President Bush's announcement that the United States would explore a Free Trade Agreement with Central America was highly favorable. Salvadoran President Flores–whose administration set as a core plan of its economic policy strategy the signing of FTAs with its top 10 trading partners by 2003--applauded Mr. Bush's willingness to explore an FTA with the region. Guatemalan President Portillo described the news as "fabulous," and a trade association official stated that an FTA with Guatemala's principal trade partner would make the economy grow through increased exports, notably in the areas of agricultural products, textiles and apparel. Nicaraguan President Bolanos was quoted by the press as stating that President Bush's announcement was "excellent news" for Nicaragua. Costa Rican President Rodriguez said that he was "optimistic about the possibility to negotiate this treaty," and concurred with President Bush's remarks that there should be no delays in the FTAA negotiations.

President Bush States U.S. Will Explore Free Trade Agreement with Central America

During January 16 remarks to the Organization of American States, President Bush announced that the United States will explore a free trade agreement with Central America. According to the President, one of the goals of negotiating a Central American FTA is to take another step toward completing the Free Trade Area of the Americas. Mr. Bush noted, however, that enactment of a Central American FTA and other legislation (e.g., the Chile FTA and Andean Trade Preference Act) depends on passage of Trade Promotion Authority by Congress.

View text of President's remarks

View Fact Sheet U.S. - Central America Free Trade Agreement

NAFTA: Fourth Round of Accelerated Tariff Cuts

The United States, Canada and Mexico have completed the fourth and final round of NAFTA tariff acceleration, which took effect on January 1, 2002. Mexico agreed to eliminate duties on several U.S. products including auto parts, footwear, chemicals and electrical equipment approximately totaling $4.5 billion. About 1/3 of the number of products were identified by the Department of Commerce, International Trade Administration, for which the USG sought parity because Mexico had granted European Union exporters duty-free treatment under the E.U.-Mexico Free Trade Agreement. The USG agreed to eliminate duties on some footwear products. [All tariffs on qualifying goods between the U.S. and Canada were duty-free on 1/1/98. Data source: US Bureau of the Census data as reported by the World Trade Atlas.]

Mexico: Proposed Standards (December 24, 2001 to January 7, 2002)

View recently proposed and enacted Mexican Government standards

Commerce Secretary Evans Comments on Taiwan's WTO Entry

In a January 2 statement, Commerce Secretary Evans congratulated Taiwan after it officially became the newest WTO member. The Secretary noted that Taiwan's accession will further open Taiwan's market to American exports of industrial goods and services.

View Commerce Department press release

WTO Upholds Key Aspects of U.S. Trademark Law

On January 2, the WTO upheld key aspects of a U.S. law concerning the ownership of U.S. trademarks associated with businesses confiscated in Cuba. The report confirms the United States' position that WTO intellectual property rights rules leave WTO Members free to protect trademarks by establishing their own trademark ownership criteria. The ruling does not call into question the distinction that the U.S. law in question draws between original trademark owners and companies that acquire a trademark as part of a government confiscation. View USTR press release (no longer available)

WTO: Chinese Taipei Becomes 144th Member

Chinese Taipei became the 144th member of the WTO on January 1, 2002, 30 days after it had notified the Director-General that it had completed domestic ratification of its accession package.

View WTO report