August 2003 News

Secretaries Evans and Abraham to Co-chair U.S.- Russia Commercial Energy Summit

The second U.S.-Russia Commercial Energy Summit will take place on September 21-23, 2003, in St. Petersburg, Russia, to continue the bilateral dialogue on energy issues with key representatives of both countries’ energy industries. The Summit will bring together high level government and industry officials from both the U.S. and Russia, and will be co-chaired by Commerce Secretary Evans, Energy Secretary Abraham, Russian Economic Development and Trade Minister Gref, and Energy Minister Yusufov. For information about participating in the Summit, please visit the United States Energy Association’s website or phone USEA at (202) 312-1230.

President Fox to Open Cancun WTO Ministerial Conference

On September 10, President Vicente Fox of host Mexico will open the Fifth WTO Ministerial Conference at the Cancún Convention Centre, according to the order of business approved by the General Council on August 27, 2003. The General Council also agreed to forward to Ministers an invitation by Hong Kong, China to host the Sixth Ministerial Conference. President Fox will be followed by Mexican Foreign Affairs Minister Luis Ernesto Derbez, who will be the Chairman of the Ministerial Conference, and WTO Director-General Supachai Panitchpakdi. UN Secretary-General Kofi Annan and WTO General Council Chairman Carlos Perez del Castillo will also address the inaugural session. After the inaugural session, the Ministers will meet in a business session, during which they are expected to adopt the agenda and agree on the organization of work. Ministers will make general statements during plenary sessions scheduled daily from the afternoon of September 10 to the morning of September 14.

View WTO press release

View provisional Cancun agenda

Request for Comments, Notice of Public Hearing on Proposed U.S.-Dominican Republic FTA Negotiations

In a Federal Register notice, the Trade Policy Staff Committee (TPSC) notes that it will convene a public hearing and seek public comment to provide USTR advice on how specific goods and services and other matters should be treated under an agreement resulting from the proposed U.S.- Dominican Republic Free Trade Agreeement (FTA) negotiations. Persons wishing to testify orally at the hearing must provide written notification of their intention, as well as their testimony, by October 1, 2003. A hearing will be held in Washington, DC beginning on October 8, 2003, and will continue as necessary on subsequent days. Written comments are due by noon, November 2, 2003. For information on making submissions to USTR, please consult the Federal Register notice.

Request for Comments, Notice of Public Hearing on Proposed U.S.-Bahrain FTA Negotiations

In a Federal Register notice, the Trade Policy Staff Committee (TPSC) notes that it will convene a public hearing and seek public comment to assist (USTR) in amplifying and clarifying negotiating objectives for the proposed U.S. - Bahrain Free Trade Agreement (FTA) and to provide advice on how specific goods and services and other matters should be treated under the proposed agreement. Persons wishing to testify orally at the hearing must provide written notification of their intention, as well as their testimony, by October 17, 2003. A hearing will be held in Washington, DC, beginning on November 5, 2003 and will continue as necessary on subsequent days. Written comments are due by noon, November 17, 2003. For information on making submissions to USTR, please consult the Federal Register notice.

Request for Public Comments on Interim Environmental Review of U.S. - Central America Free Trade Agreement

In a Federal Register notice, the Trade Policy Staff Committee (TPSC) advises that USTR is seeking comment on the interim environmental review of the proposed U.S.-Central America Free Trade Agreement (CAFTA). The interim environmental review is available at http://www.ustr.gov/environment/environmental.shtml (no longer available). Comments on the draft environmental review are requested no later than October 15, 2003, and earlier if possible. For information on making submissions to USTR, please consult the Federal Register notice.

EU Emissions Trading Scheme

On July 22, 2003, the EU adopted a directive giving new impetus to a EU-wide greenhouse gas emissions-allowance trading scheme (EATS). The EATS sets limits on the emissions of carbon dioxide (all gases are not covered) from energy intensive sectors. The implementation of such a program will have a pronounced impact on businesses located in the EU as rules to limit greenhouse gas emissions officially take effect beginning January 1, 2005. As EU commitments to emissions allowance trading continues to evolve, it is important for affected businesses to react immediately. The EU Commission placed much of the responsibility of writing, implementing and enforcing emissions law in the hands of the Member States. Therefore, companies that currently have business interests in Europe - or have aspirations to open installations that carry out any of the activities targeted for emissions reduction – should consider contacting the U.S. Commercial Service for instructions on how to prepare for these changes. The new legislation also provides an opportunity for U.S. companies that can supply pollution-control and clean energy technology. Many EU installations will be seeking to upgrade their facilities to meet emission-reduction obligations. The U.S. Commercial Service can assist with identifying market opportunities and locating business partners throughout Europe. For more information regarding this report or for current developments regarding the EU EATS, please contact Commercial Specialist Flavie Guerin by email: flavie.guerin@mail.doc.gov (Direct Dial: +32 2 508 2841), at the U.S. Mission to the EU. You can also visit the U.S. Commercial Service at the U.S. Mission to the EU website. If you wish to obtain industry sector specific information in a specific country in Europe, visit the Showcase Europe website. The nearest U.S. Export Assistance Center can be found by visiting http://www.buyusa.gov.

USTR's Allgeier Presses for Tough Reforms at WTO

During an August 27 teleconference with reporters, Deputy U.S. Trade Representative Peter Allgeier said that the U.S. wants to achieve ambitious results in the WTO negotiations and avoid turning the organization into a two-tiered system, with different requirements for developed and developing countries. Allgeier said that the stakes at the September 10-14 WTO Cancun Ministerial meeting will be high for the world economy and for the WTO itself. He lamented that the U.S. is "practically alone" in seeking ambitious results across all aspects of trade, citing U.S. proposals for lowering barriers in agriculture, industrial goods and services. Allgeier said he expects the WTO General Council Chairman Carlos Perez del Castillo, who prepared the Cancun draft declaration, will submit the statement unchanged to the Cancun meeting but will also issue a cover letter describing the tough decisions the ministers need to make on agriculture and industrial goods, services, and what are known as the four Singapore issues: investment, competition policy, trade facilitation and government procurement. Allgeier also predicted resolution by the Cancun meeting of the divisive issue of patented medicines. Developing countries need to have flexibility to get drugs for national health emergencies while drug companies need to protect their patents, he said. View transcript of Allgeier teleconference (no longer available)

WTO: U.S. Comments on Chairman's Cancun Ministerial Text

View the transcript (no longer available) of the U.S.’s comments regarding WTO General Council Chairman Carlos Perez del Castillo’s Cancun Ministerial text. The U.S. expressed disappointment that "there has not been further convergence on the main issues that Ministers will need to address at Cancun."

Philippines: Auto Excise Tax Ratified

On August 25, both the Philippine House of Representatives and Senate ratified the auto excise tax legislation. President Arroyo is expected to sign this ratified legislation on August 29. Both a U.S. auto industry executive and the American Chamber of Commerce expressed satisfaction over the approved bicameral report.

Agriculture Secretary Veneman and Chinese Agriculture Minister Du Qinglin Address Trade Concerns

On August 25, Agriculture Secretary Ann Veneman welcomed Chinese Minister of Agriculture Du Qinglin to the U.S. The two held wide-ranging discussions on trade issues and concluded their talks by signing a Memorandum of Understanding (MOU) promoting continued bilateral cooperation in scientific research and agricultural trade. Secretary Veneman commented that she and Du held “frank discussions on matters of concern to both the U.S. and China’s agricultural sectors.” She noted, “Since China joined the WTO in 2001, it has become our fifth largest market for agricultural exports. However, we believe China has not fully complied with its commitments, and we urge it to do so.” Veneman and Du discussed U.S. soybean sales to China and the recent disruptions due to unjustified phytosanitary restrictions. China is the largest export destination for U.S. soybeans, and sales have surpassed $1.7 billion thus far in the year. Veneman urged the Chinese officials to immediately drop the unwarranted restrictions so that normal trade may resume. Veneman and Du also exchanged views on the ongoing WTO agricultural negotiations, and reviewed progress on addressing trade opportunities that will result once phytosanitary matters are resolved.

View USDA press release

View text of U.S.-China MOU on cooperation in agriculture and related fields

Impact of EU Accessions on U.S. Services Trade

In a Federal Register notice (offsite link), the Trade Policy Staff Committee (TPSC) advises that USTR is soliciting written submissions from the public concerning the market access implications for U.S. trade in services of the 1995 enlargement of the EU to include Austria, Finland and Sweden. On July 10, 2003, the EU notified the WTO Council for Trade in Services of their intention to modify or withdraw Specific Commitments, stating that previous GATS schedules of specific commitments and lists of MFN exemptions will be replaced by new commitments as from April 30, 2004. On August 6, 2003, the U.S. indicated its claim of interest in the modification or withdrawal of specific commitments, and requested negotiations with the EU pursuant to GATS Article XXI with a view to reaching an agreement on any necessary compensatory adjustment. USTR and other agencies are currently assessing the potential impact on U.S. services trade of the 1995 enlargement of the EU, and in particular of what compensation the EU may owe to the U.S. under WTO rules. Comments from the public in response to this notice will be incorporated into that assessment. For information on making submissions to USTR, please consult the Federal Register notice.

IMF, World Bank Pledge to Help Poor Nations Reach WTO Goals

On August 21, the IMF and the World Bank announced that they have promised to assist developing countries in implementing commitments they make as global trade liberalization talks proceed. In a joint letter to WTO Director General Supachai Panitchpakdi, the heads of the two organizations said that they stand ready to help those countries defray costs of adjusting to a new world trading system that may emerge from the latest round of WTO negotiations, known as the Doha Development Agenda. The IMF and the Bank also will consider providing assistance in designing policies, reforms and investment programs aimed at addressing key obstacles to trade expansion, the letter said.

View text of IMF press release

Nepal set to join WTO at Cancún Ministerial Conference

The WTO Working Party wrapped up Nepal’s membership negotiation was wrapped up on 15 August. Nepal is set to be the second least-developed country to join the WTO through the full working party process. Its membership is likely to be approved at the Cancún Ministerial Conference in September.

View text to WTO news item

U.S. Wins World Trade Organization Case on Japanese Steel

The Office of the U.S. Trade Representative (USTR) hailed a World Trade Organization (WTO) panel's decision that the use of the "sunset review" process to continue an antidumping duty order on Japanese steel is "consistent with U.S. WTO obligations" under the WTO Antidumping Agreement.

View text of USIS Washington file report

ITC investigates economic impact of a U.S.-Dominican Republic Free Trade Agreement

ITC is investigating the probable economic effect of a U.S.-Dominican Republic Free Trade Agreemet, and are seeking input from trade associations, industry officials, and other interested parties.

View text of International Trade Commission Report

U.S. and EU Present Framework on Agriculture to WTO

The U.S. and the EU reached a framework agreement that moves tough agricultural issues a step forward, according to officials. The agreement tackles issues like domestic support, export subsidies and credits, and market access, but does not address the peace clause, non-trade concerns, or geographical indications, among other issues. While the agreement is seen as progress, negotiators still must work out specific numbers and timetables before the 2004 deadline. View text of USDA press release (no longer available)

View text of USIS Washington File report.

ITC Issues Report on Impact of Trade Agreements on U.S. Economy

The U.S. International Trade Commission submitted its report, "The Impact of Trade Agreements: Effect of the Tokyo Round, U.S.-Israel FTA, U.S.-Canada FTA, NAFTA, and the Uruguay Round on the U.S. Economy," to Congress earlier this month. The report notes that among the five agreements, the multilateral Tokyo and Uruguay Round Agreements yielded the greatest economic effects. The report will be available on ITC's Internet site: www.usitc.gov.

View ITC press release.

U.S. Agency To Help China Modernize Port Operations

The U.S. Trade and Development Agency announced a grant to China's customs agency to partially fund a feasibility study on modernizing Chinese port operations and training Chinese port personnel on WTO norms and practices.

View text of USIS Washington File report.

U.S. Tables WTO Proposal to Cut Tariffs

The U.S. presented a proposal on August 11 at the WTO aimed at getting members to cut their highest tariffs. The proposal provides exceptions for developing countries. View text of USIS Washington File report.

Turkmenistan Granted Waiver of Jackson-Vanik Amendment

U.S. President George Bush granted Turkmenistan a waiver of the Jackson-Vanik Amendment in light of new developments in Turkmenistan's emigration policy. View text of USIS Washington File report.

US Requests WTO Dispute Panel to Challenge EU Biotech Moratorium

The U.S., together with Canada and Argentina, is asking the WTO for a dispute settlement panel to challenge the EU ban on approval of agricultural biotechnology products. Australia, Chile, Colombia, Mexico, New Zealand, and Peru, among other countries, intend to join as third parties. View text of USDA press release (no longer available)

Zoellick to Travel to Colombia, Meet with President Uribe

U.S. Trade Representative Robert Zoellick will travel to Colombia on August 8 to meet with President Alvaro Uribe and explore ways to deepen U.S.-Colombian trade ties. Colombia has expressed interest in negotiating a possible Free Trade Area with the United States. View text of USIS Washington File report

USTR Notifies Congress of Intent to Initiate Free Trade Talks with Bahrain and Dominican Republic

On August 4, U.S. Trade Representative Robert Zoellick formally notified Congress of the Administration's intent to initiate negotiations for a free trade agreement (FTA) with Bahrain in January 2004. Zoellick also formally notified Congress of the Administration's intent to initiate negotiations for an FTA with the Dominican Republic. The Administration will seek to integrate the Dominican Republic into the Central American Free Trade Agreement (CAFTA), and could then send Congress one agreement including the six countries. (links no longer available) View USTR press releases: for Bahrain and Dominican Republic View Fact Sheets: for Bahrain (pdf) and Dominican Republic (pdf) View Letters to House: for Bahrain (pdf)and Dominican Republic (pdf) View Letters to Senate: for Bahrain (pdf) and Dominican Republic (pdf)

USITC Seeks Input for Investigation on Express Delivery Services

The U.S. International Trade Commission (USITC) has launched an investigation of competitive conditions faced by U.S. - based express delivery companies in foreign markets. Among USITC’s goals for the investigation is to identify, to the extent possible, additional trade impediments encountered by U.S.-based express delivery service suppliers in foreign markets. USITC will submit its report by April 1, 2004. USITC is seeking input for this report from all interested parties. It will hold a public hearing in connection with this investigation on November 5, 2003; requests to appear at the hearing should be filed no later than 5:15 p.m. on October 22, 2003. For information on making submissions to USITC for this investigation, please consult the Commission’s press release.

EU Proposes New Regulation on Commercial Vehicles

On July 14, the European Commission adopted a proposal for new requirements for motor vehicles operating in the EU. The new technical provisions primarily affect commercial vehicles and buses. The proposal, if adopted, would make antilock brakes (ABS) and other safety features mandatory on certain categories of commercial vehicles. Additionally, buses will need to accommodate persons with reduced mobility. The Commission foresees the proposed measures being phased in starting in 2006. For more information, please contact Todd Hansen of the U.S. Commercial Service at the U.S. Mission to the EU via phone (011-32-2-508-2840) or e-mail (Todd.Hansen@mail.doc.gov). View text of International Marketing Insight on proposed EU regulation concerning commercial vehicles (pdf).

Statement by Secretary Evans on Free Trade Agreements with Singapore and Chile

View the text (no longer available) of Secretary of Commerce Don Evans’ statement on passage of the Singapore and Chile Free Trade Agreements by the House and the Senate. The Secretary stated that the agreements “will build on our economy’s strengths while sending an important signal to the world that America is serious about expanding free trade...”

Good Economy Will Cure Ills, Manufacturers Say

View the text of a Baton Rouge, Louisiana Advocate report regarding Assistant Secretary for Market Access and Compliance William Lash III’s visit to New Orleans, where he held a roundtable discussion with local manufacturers. The Commerce Department is seeking feedback and insights for a report requested by Commerce Secretary Don Evans on the problems U.S. manufacturers are facing. The report will make recommendations on actions the Bush administration should take to revitalize the manufacturing sector of the economy. Mr. Lash told the participants that the Administration "...understand(s) the importance of manufacturing. If we see manufacturing in decline, we want to see what we can do to get that back on track. Manufacturing matters to us."

Central American Trade Talks Are Progressing, Say Officials

On August 1, Assistant U.S. Trade Representative for the Americas Regina Vargo stated that negotiations to create a U.S. - Central America free trade agreement (CAFTA) are progressing. Speaking at the conclusion of the sixth round of CAFTA negotiations, Vargo said that the U.S. Senate's approval of U.S. free-trade agreements with Chile and Singapore on July 31 put a good wind in the sail of the negotiators from Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the U.S. assembled in New Orleans for the week. And already, she added, progress has been made in many areas. Vargo said that CAFTA market-access discussions continue to be valuable and productive and will lay the foundation for the exchange of new offers. She noted that talks on the subjects of customs administration and electronic commerce were particularly successful, indicating that negotiations in these areas advanced significantly with only final reviews needed on the subjects. Negotiators for the CAFTA partners echoed Vargo's positive assessment of the talks. The next round of CAFTA talks will be held in Managua, Nicaragua, and negotiators have said they hope to finalize the agreement by the end of 2003.

View text of USIS Washington File report

Russia: Increased Scope for Duty-Free Inputs for Car Assembly

On July 20, Russia’s Ministry of Industry, Science, and Technology sent the government a request to lower to $4.9 million the investment threshold needed by foreign investors to obtain duty-free imports of raw materials for the assembly of cars. Under a 1998 law aimed at attracting additional investment to the russian automobile sector, foreign investors are exempted from paying custom duties on raw materials used in car assembly or in the production of spare parts, provided that investments into such enterprises exceed $49 million during a five-year period.

USTR Zoellick Applauds Approval of Chile, Singapore Trade Agreements

In a July 31 press release, U.S. Trade Representative Robert Zoellick stated that the free-trade agreements with Chile and Singapore approved by the Senate will benefit U.S. businesses and consumers, and legislative passage of the agreements will bolster global free-trade negotiations. Zoellick indicated that the agreements approved by the Senate are an important part of the administration's efforts to expand trade globally, regionally and bilaterally. He added that the White House will continue to push for open markets through WTO talks and in Free Trade Area of the Americas negotiations.

View text of USTR press release