April 2003 News

International Chamber of Commerce Supports New WTO Rules on Trade Facilitation

The International Chamber of Commerce has issued a new position paper in support of new Trade Facilitation negotiations in the World Trade Organization this September. The paper, "ICC Recommendations for a WTO Agreement on Trade Facilitation," states that a Trade Facilitation agreement is fundamental to the establishment of an improved and more efficient management process for international trade in goods on a global basis. The ICC goes on to state that all WTO member countries will benefit from it -- especially those burdened with the least efficient trading processes, either through infrastructure or managerial limitations or because of procedural barriers being imposed by trading partners.

USTR Zoellick to Attend OECD Ministerial, Meet with European Officials

USTR Robert Zoellick is in Paris, where he will discuss trade issues at the annual Organization for Economic Cooperation and Development (OECD) Ministerial meeting and meet bilaterally with his ministerial colleagues to review the current state of the Doha WTO trade negotiations. Zoellick is expected to meet with French Economic Minister Mer on April 28, and to continue with bilaterals with several developing countries on April 29. Following the OECD meetings on April 30, Zoellick and EU Trade Commissioner Pascal Lamy will hold bilateral meetings on May 1 to continue exploring ways to move the trade talks forward. On May 2, Zoellick will meetings with German government officials and business leaders. The following day, he will address the Munich Economic Summit and meet with business executives to discuss the importance of the Doha WTO negotiations. View text of USTR press release (no longer available)

U.S., E.U. Renew Commitment to Trans-Atlantic Business Dialogue

On April 28, the U.S. and the European Commission agreed on details for a renewed commitment to the Trans-Atlantic Business Dialogue (TABD) as a key forum for government and industry discussions on transatlantic commercial matters. Meeting in Brussels, Under Secretary of Commerce for International Trade Grant Aldonas, European Commission Director-General for Enterprise Jean-Paul Mingasson, and Deputy Director-General for Trade Pierre Defraigne underscored the need for government and industry cooperation to strengthen the transatlantic commercial relationship and bolster the two economies. Under Secretary Aldonas stated, "Government and industry have taken time to examine the TABD process. Our governments are renewing the call to industry on both sides of the Atlantic to work through a changed TABD process on the key trade facilitation issues facing the relationship." Commerce Secretary Donald Evans and E.U. Commissioners Erkki Liikanen and Pascal Lamy have exchanged letters stating support for the TABD's activities in 2003-2004; the TABD is likely to be re-launched at the time of the June 25 E.U.-U.S. Summit in Washington.

View text of ITA press release

China: President Bush Rejects Tariffs for Wire Hanger Imports

On April 25, the White House announced that President Bush rejected a petition from domestic producers for additional tariffs on imports of wire hangers from China. In the announcement, the President stated, "I find that import relief would have an adverse impact on the United States economy clearly greater than the benefits of such action." Tariffs on Chinese wire hangers would affect domestic producers unevenly, the President noted, and favor one business strategy over another. Moreover, the President stated, most domestic producers have responded to the competition by modernization and expansion into complementary services.

View text of White House press release

Vietnam-U.S.: Textile Agreement Summary

View the text (no longer available) of a summary of the Vietnam-U.S. Textile Agreement, which would run from May 1, 2003 to December 1, 2004.

China: CCC Mark Enforcement Delayed from May 1 to August 1, 2003

On April 25, China’s State General Administration of Quality Supervision and Inspection and Quarantine (AQSIQ) and Certification and Accreditation Administration (CNCA) published at its website: www.cnca.gov.cn (Off-site link) an announcement postponing the mandatory enforcement date of the China Compulsory Certification (CCC) Mark from May 1, 2003 to August 1, 2003. U.S. exporters with questions about the CCC mark can contact Timothy Wineland of the Commerce Department for more information about CCC mark rules, as well as other questions about China's regulatory system and its standards, by telephone (202-482-5316), fax (202-482-1576), or via email (Timothy_Wineland@ita.doc.gov).

View Office of China Economic Area news item

WTO: China and Egypt Join Information Technology Agreement

On April 24, 2003, China and Egypt became the 58th and 59th members, respectively, of the WTO Information Technology Agreement (ITA), which eliminates tariff barriers to information technology (IT) products such as personal computers and telecommunications equipment. The ITA is helping to push the information technology revolution forward. Beginning in 2000, most of the world trade in IT products (worth $828 billion in 2001 for office and telecom equipment, a large part of which are IT products) became completely free of tariffs under the ITA. To participate in the ITA, a member must eliminate tariffs and all other duties and charges on covered IT imports from all WTO members. View WTO news release (includes list of ITA members)

Ethiopia: Revised Investment Code Finally in Effect

The Ethiopian Investment Authority (EIA) announced that the revised investment proclamation (Number 280/2002) and the corresponding investment regulations (Number 34/2003) it formulated recently came into effect beginning April 4, 2003. EIA Director General Abi Woldemeskel said that the new code is compatible with the country's policies and development programs and is envisaged to attract domestic and foreign investors. EIA will start providing one-stop shopping service to foreign investors, offering most of the services that are required by foreign investors, including the provision of operating licenses, in addition to the investment license, and the leasing of land to foreign investors on behalf of regional governments. The new investment code declares that investments in the areas of banking and insurance business, forwarding and shipping agency services, broadcasting, and air transport services using aircraft with a seating capacity of up to 20 passengers are reserved for Ethiopian nationals.

U.S.-Australia FTA: Creating Stronger Ties with an Historic Ally

View the text of “U.S.-Australian Free Trade Agreement: Creating Stronger Ties with an Historic Ally,” which appears in the April 2003 issue of Export America. According to the article, which was prepared by Ariadne BenAissa of the Commerce Department’s Market Access and Compliance (MAC) unit, the U.S. plans to use the negotiations to strengthen the already significant bilateral commercial ties and to address barriers that U.S. exporters face in the Australian market.

WTO Reports Trade Recovered in 2002, but Uncertainty Continues

According to the latest WTO figures, merchandise trade grew by 2.5 percent in 2002, up from a 1 percent decline in 2001. This increase was driven by strong demand in the U.S. and the big Asian economies. However, trade growth -- which was significantly above the 1.5 percent increase in total world output -- was uneven and masked the sluggish trade performance in many regions, including Latin America and Western Europe. Considerable uncertainty clouds trade growth prospects for 2003. Early indications suggest that at less than 3 percent, growth in trade volume for 2003 will be little or no better than 2002. WTO Director General Supachai Panitchpakdi commented, “These trade figures reflect the growing economic and political uncertainty in the world today...(which) is detrimental to economic growth and development and can give rise to greater instability across the globe. Governments must send a signal that they are prepared to address this problem. One very important contribution to this effort would be to accelerate work on the negotiations in the Doha Development Agenda.”

View WTO news release

USTR Zoellick Urges EU to Accept Agricultural Policy Reform

USTR Robert Zoellick stated April 22 that WTO negotiations are unlikely to move forward unless EU member states go along with the types of agricultural policy reforms proposed by the EU Commission. In remarks to the U.S. Export-Import Bank’s annual conference, Zoellick expressed hope that EU members will align their foreign policies and economic interests with those of the international economy, the WTO, and the developing world by accepting the main features of Common Agricultural Policy (CAP) reforms proposed by the European Commission, which proposed spending less money on agricultural market subsidies and more on rural development. The EU is still debating the plan.

View USIS Washington File report

WTO: Cambodia Moves Closer to Membership by Cancún

A tight schedule has been agreed for Cambodia’s WTO membership negotiation to end in July, allowing the possibility for all the formalities to be completed by the Fifth WTO Ministerial Conference, to be held September 10-14 in Cancún, Mexico. At the end of the Cambodian accession working party’s fourth meeting on April 16, participants agreed on the July target for completing the working party’s report, although a lot of work remains on completing bilateral negotiations and the final multilateral package. Cambodia, which applied to join the WTO in late 1994, appears set to become the first least-developed country to join since the WTO came into being in 1995.

View WTO news item

Commerce Assistant Secretary Lash Discusses Market Access Issues in Ohio

View the text of an April 16 Cincinnati Inquirer news article regarding Commerce Assistant Secretary for Market Access and Compliance William Lash’s April 16 visit to Cincinnati, where he met with local companies to discuss market access issues they face.

U.S. Says FTAA Talks Are Moving Ahead

On April 11, Deputy U.S. Trade Representative Peter Allgeier told reporters via teleconference that negotiations to create a Free Trade Area of the Americas (FTAA) by the target date of January 2005 are moving ahead, and that an updated version of the agreement should be ready by this July. Allgeier was in Puebla, Mexico for a meeting of the FTAA’s Trade Negotiations Committee (TNC). In an April 10 statement, the TNC said it had asked negotiators to develop a proposed architectural framework for the agreement to be submitted for TNC review at its next meeting, which will be held in El Salvador the week of July 7. Negotiators were also asked to prepare a template for the draft chapters and to submit it to the TNC at its July meeting. Allgeier reaffirmed the U.S. policy of conducting simultaneous trade liberalization talks at the multilateral, regional and bilateral levels, adding that U.S. officials are pushing very hard for progress in both the WTO and FTAA negotiations.

View USIS Washington File report

U.S. Reaffirms Commitment to Central America

President Bush reiterated the U.S.’s strong interest in crafting a Central American Free Trade Agreement (CAFTA) and reaffirmed the U.S. goal of concluding CAFTA negotiations in 2003 during an April 10 White House meeting with Central American leaders, according to USTR Robert Zoellick. He stated that these working meetings provided an opportunity to review progress in the CAFTA talks and focus on the key challenges ahead. In order to ensure that the broad benefits of the agreement are enjoyed in Central America, enhancing the trade capacity of the five nations is crucial.

View text of USIS Washington File report

Bahrain and U.S. Discuss Strengthening Trade, Economic Relationship

On April 9, Bahraini Minister of Finance and National Economy Abdallah Saif and USTR Robert Zoellick discussed ways to deepen the U.S.-Bahraini economic relationship and improve bilateral trade ties. The meeting took place on the eve of the April 10-11 U.S.-Bahrain TIFA Council meeting, a joint body created by the U.S.-Bahrain Trade and Investment Framework Agreement (TIFA). Commerce Market Access and Compliance (MAC) staff members participated in the Council meetings, where the discussion topics included biotechnology, shelf-life standards, the International Conformity Certification Program, intellectual property rights, tariffs, textiles, and the possibility of an FTA with Bahrain. MAC/Office of the Middle East Director Cherie Loustaunau participated in a roundtable discussion with AUSTR Novelli, during which the Bahraini delegation briefed business representatives on opportunities for expanding the U.S.-Bahrain trade and economic relationship. U.S. companies gave positive accounts of doing business in Bahrain. Minister Saif met with several members of Congress who expressed support for a possible FTA with Bahrain. View USTR press release (no longer available)

WTO Symposium Regarding ‘Challenges on Road to Cancún’

On June 16-18, the WTO will host a public symposium regarding challenges Members face ahead of September’s 5th Ministerial Conference in Cancún, Mexico. The symposium will feature an opening plenary followed by work sessions on key subjects being negotiated in the Doha Round; topics include trade and development, issues related to agriculture, trade in services, and trade and environment. In addition, time will be set aside for governments, parliamentarians and civil society to organize their own events during the symposium on issues of their choice.

View WTO news release

Commerce Under Secretary Aldonas Addresses Bush Administration’s Manufacturing Agenda

View the text of the prepared testimony of Under Secretary of Commerce for International Trade Grant Aldonas before the House Committee on Small Business regarding the Bush Administration’s manufacturing agenda. In his April 9 remarks, Mr. Aldonas noted that Commerce Secretary Evans has asked him to lead a comprehensive look at both the challenges and opportunities facing American manufacturing. Among the areas of concern identified by manufacturers were the needs for stronger intellectual property protection and new product standards.

USITC Seeks Public Input for Investigation on Impact of U.S.-Chile FTA

The U.S. International Trade Commission (USITC) is now seeking public input for its investigation to assess the impact of the U.S.-Chile comprehensive bilateral free trade agreement (FTA). USITC will prepare a report which assesses the likely impact of the U.S.-Chile FTA on the U.S. economy as a whole and on specific industry sectors and the interests of U.S. consumers. USITC will hold a public hearing in connection with the investigation on May 1, 2003 in Washington, D.C. Requests to appear at the hearing should be filed with the Secretary to the Commission, 500 E Street S.W., Washington, DC 20436, by April 21, 2003. Written submissions should be addressed to the Secretary to the Commission at the above address, and should be submitted by May 8.

View USITC press release

Philippines: First IPR Conviction for Optical Disk Pirates

The Philippines has secured its first conviction of optical disk pirates. A Videogram Regulatory Board (VRB) representative confirmed press reports that 12 foreigners were found guilty by a regional trial court under the anti-piracy law for the illegal production of CDs and DVDs. The 12 were each fined about US$2,000 and were sentenced to jail terms ranging from three to twelve months, without probation. The convicts were initially arrested in August 2002, when VRB authorities raided an illegal replicating facility in Manila, confiscating four replication machines and 50,000 pirated CDs, valued at US$20 million. VRB Chairman Bong Revilla said in a statement that the conviction has greatly boosted the government's campaign against piracy.

Sri Lanka Liberalizes International Telecommunications Gateways

In early March, Sri Lanka opened the international voice telephony market, ending the monopoly held by Sri Lanka Telecom, a partially state-owned venture. The entry of competitors into the international telecom services market has resulted in significant reductions in call rates. This liberalization has also enabled Sri Lanka to meet its long overdue WTO commitments on international voice services. The Government of Sri Lanka (GSL) has announced a new program of rural network development to be funded through a charge on international communications. The GSL is planning a new communications convergence act and a strong regulator along the lines of the U.S. Federal Communications Commission to ensure a level playing field in terms of tariffs and access, as well as to ensure service quality of international leased circuits and effective interconnection.

Japan Makes Some Progress in Liberalizing Port Operations

Operators of foreign ships believe that technical issues at Japanese ports have improved recently. For example, labor costs have dropped significantly, and the number of major and minor matters requiring approval by the Japan Harbor Transportation Association has decreased. However, structural issues remain problematic. It is practically impossible to change stevedoring companies or terminals; also, terminal operators cannot, for all intents and purposes, use their excess capacity to service third party business.

Tunisia Raises VAT on Imported Items

On March 11, the Government of Tunisia formally announced Presidential Decree No. 2003-477, which fixes a list of imported goods that are now subject to a 25 percent increase in VAT, in its Official Journal. This list appears to cover the entire range of consumer goods, many of which are already subject to the highest VAT bracket.

USITC Study Finds Room for Increased Liberalization of Trade in Oil and Gas Field Services

In its study Oil and Gas Field Services: Impediments to Trade and Prospects for Liberalization the U.S. International Trade Commission (USITC) states that negotiations under the WTO General Agreement on Trade in Services (GATS) offer a means of addressing many of the trade impediments encountered by oil and gas field service providers. The report describes the various activities involved in oil and gas field services, discusses the nature and extent of trade, and examines the extent of impediments to trade and the potential benefits of trade liberalization.

USTR Expands Complaint Against EU on Geographic Names

USTR announced April 4 that the U.S. has added a new claim to its existing WTO challenge to the EU’s failure to protect U.S. trademarked geographic names such as Florida oranges and Idaho potatoes. USTR said that the EU's failure to protect such trademarked names violates EU obligations under the WTO General Agreement on Tariffs and Trade (GATT). View USIS Washington File report (includes text of USTR press release)

Mexico: Proposed Standards (for March 24 to April 4, 2003)

View recently proposed and enacted Mexican Government standards

Commerce Under Secretary Aldonas Announces Steps to Enhance U.S. Textile Industry Competitiveness

On April 3, Under Secretary of Commerce for International Trade Grant Aldonas announced two new developments to help the U.S. textile industry remain competitive in the global marketplace. First, he announced the conclusion of the first stage in a textile marker project to help fight fraudulent foreign trading practices that harm the U.S. textile industry. Aldonas also announced procedures for safeguard actions on textile and apparel imports from China; these procedures implement a special safeguard provision for textiles and apparel that is part of China's agreement for accession to the WTO. The announcements were made at the American Textile Manufacturers Institute (ATMI) Annual Meeting in Coral Gables, Fla.

View text of ITA press release

Macedonia Accedes to WTO

On April 4, the Former Yugoslav Republic of Macedonia became the 146th Member of the WTO. Macedonia started its accession negotiations in 1994. Another 26 countries are in the process of negotiation to become members of the WTO. Vanuatu completed its negotiations, but no further action has been taken since the last meeting of the Working Party on 29 October 2001. Requests for accession have also been received from Iran, Syria and Libya but working parties on these applications have not yet been established.

View WTO news item

View WTO fact sheet on Macedonia

U.S. Releases Text of U.S.-Chile Free Trade Agreement

View the text (no longer available) of the U.S.-Chile Free Trade Agreement, which was released April 3.

WTO: Director General Supachai Underlines Importance of Doha Progress to Global Confidence

While opening an informal meeting of the Trade Negotiations Committee on April 2, WTO Director-General Supachai Panitchpakdi stressed that “at a time of growing global economic uncertainty, progress in the Doha Round towards its timely conclusion can make a much-needed contribution to confidence.” He expressed the hope that officials will take back to capitals “a renewed sense of the necessity of political commitment and the urgency of sustaining the momentum of the negotiations.”

View text of Supachai’s opening statement to Trade Negotiations Committee

U.S. to Spend More on WTO Capacity Building

In an April 2 press release, Deputy USTR Peter Allgeier stated that the U.S. will spend $1 million more to help poor countries develop the capacity to participate in WTO negotiations and implement WTO agreements. Allgeier, who was in Geneva for a WTO Senior Officials’ Meeting, commented, "This contribution, in addition to our large bilateral assistance programs that total $638 million in 2002, up from over $598 million in 2001, shows the U.S. commitment helping countries participate more fully in the WTO and will facilitate a constructive negotiating environment."

View text of USIS Washington File Report

Singapore Introduces Registration Requirement for Processed Food Importers

In an action it says is intended to facilitate the quick tracing and recall of food imports, on April 1 Singapore's Agri-food and Veterinary Authority (AVA) introduced a registration requirement for all importers of processed foods. AVA announced that it will approve import permits for processed food only from AVA-registered importers. Previously, only importers of fresh food, such as meat, fish and vegetables were subject to registration requirements. With the change, a comprehensive registration system will now apply for all food importers. AVA originally advised the industry of the impending change last year. AVA states that the registration process is free-of-charge and can be done online through the AVA website (under "application forms"). Once registered, importers will use their AVA registration numbers when applying for import permits through Singapore's Tradenet system.

USTR 2003 Review of Telecom Trade Agreements

On April 2, USTR announced the results of the 2003 annual review of foreign compliance with telecommunications trade agreements (the "Section 1377" review). The key issues identified this year include continued problems with high wholesale prices for access to foreign telecom networks and foreign regulators that lack the will or ability to address these and other problems. Countries such as the UK, Italy and Germany have made important progress in addressing these issues over the past year. Others, such as Mexico and Japan, are beginning to develop possible solutions. (links no longer available) View text of USTR press release View 2003 Report and Comments

National Trade Estimate Report for 2003 Released

On April 1, USTR released the 2003 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 56 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. This year's report highlights the continuing use of non-tariff barriers (NTBs) – unscientific sanitary and phytosanitary standards (SPS), burdensome customs procedures, government monopolies, and opaque regulations – for protectionist purposes. The persistence of trade barriers affirms the need for the U.S. to remain actively engaged in promoting and enforcing trade liberalization at all levels: globally, in the ongoing WTO negotiations; regionally, through the Free Trade Area of the Americas negotiations; and bilaterally, through free trade agreements (FTAs). This report helps build domestic support for these negotiations by highlighting the potential commercial opportunities that liberalization would create. View 2003 National Trade Estimate Report(no longer available) Read USTR press release (no longer available)

Commerce Under Secretary Aldonas Addresses Caribbean Competitiveness

View the text of Commerce Under Secretary for International Trade Grant Aldonas’s March 31 address to the Puerto Rico Manufacturers Association (PRMA), the Export Council of Puerto Rico and the Chamber of Commerce of Puerto Rico, where he gave remarks on the "Competitiveness of the Caribbean in an Open Economy."

New Trade Pacts Aim to Ensure Freer Capital Flows, Says U.S.

In April 1 testimony before a House subcommittee, Treasury Under Secretary for International Affairs John Taylor stated that the U.S. free trade agreements recently negotiated with Chile and Singapore reflect the U.S.’s long-standing goal of ensuring that investment flows are not impeded by government controls. He said that the right to transfer capital and investment returns into and out of a country "without delay and at a market rate of exchange" is a "mainstay" of U.S. international investment agreements. Taylor directed his comments to critics who contend that restrictions on capital flows into developing and emerging market economies may be necessary in times of financial crisis. Both the Singapore and Chile FTAs include provisions regarding the treatment of capital flows during a financial crisis and a dispute-settlement mechanism that would apply if either country moved to restrict capital, Taylor said.

View Treasury press release