July 2003 News

Zoellick Press Conference at Montreal Informal Mini-Ministerial

On July 30, U.S. Trade Representative Robert Zoellick held a press conference at the conclusion of the Montreal informal WTO mini-ministerial meeting. He commented on the need to be ambitious in achieving the Doha Development Agenda’s goals of opening markets to help promote growth and development, while maintaining flexibility so that all parties can make progress, particularly with respect to agriculture and non-agriculture market access. Zoellick stated that the goal of the September 10-14 Cancun ministerial meeting is to try to give some impetus to the Doha negotiations –“it's not to conclude them -- and it won't be easy.” He said that, in the U.S.’s view, the core issues at Cancun will be agriculture, goods, the TRIPS and medicine issue, and how all of these relate to the overall development agenda. He said that if the U.S. can help the EU eliminate agricultural subsidies, it will do so. Zoellick suggested that if the EU is concerned about export credits, the U.S. would try to put disciplines on export credits to deal with the reduction of their term, risk sharing, and others, on a parallel frame. (no longer available) View transcript of Zoellick press conference

Final Rule on Eligibility of Countries for Benefits of Andean Trade Preference Act

View the text of a Federal Register notice which publishes the final rule providing for the establishment of a petition process to review the eligibility of countries for the benefits of the Andean Trade Preference Act, as amended by the Andean Trade Promotion and Drug Eradication Act. This final rule became effective on July 25, 2003. For further information contact: Bennett M. Harman, Office of the Americas, Office of the United States Trade Representative, at (202) 395-5190.

Secretary Evans to Lead Business Development Mission to Russia

On July 28, Commerce Secretary Don Evans announced that he will lead a delegation of U.S. business executives to explore and expand trade and investment opportunities in Russia’s energy sector on September 21-25. Evans and the trade mission delegation of business leaders will travel to St. Petersburg and Moscow, where mission participants will focus on developing new partnerships with Russian energy companies. Mission participants will also participate in the U.S.-Russia Commercial Energy Summit in St. Petersburg. Fast-growing demand for Russian oil and gas resources has created opportunities for U.S. firms in the rehabilitation of existing oil fields and development of new exploration projects, and for suppliers of related equipment and services. Further information about the trade mission, including requests for applications, may be directed to the Office of Business Liaison, Room 5062, Department of Commerce, Washington, D.C. 20230 (tel: 202-482-1360; fax: 202-482-4054). The deadline for applications is August 8, 2003. Applications and additional information are also available on the official mission Web site. View Commerce press release (no longer available)

Zoellick to Attend WTO Meeting in Montreal

On July 28 - 30, U.S. Trade Representative Robert Zoellick will meet with 27 other ministers responsible for trade in Montreal, Canada for informal talks on the Doha Development Agenda negotiations. This meeting will take place in preparation for the Fifth WTO Ministerial Conference, to be held September 10 - 14, in Cancún, Mexico. Zoellick met on July 24 with New Zealand Trade Negotiations Minister Jim Sutton and on July 25 with Australian Trade Minister Mark Vaile, discussing the global trade talks with both ministers. Zoellick and Vaile also discussed a variety of bilateral issues, including the U.S.-Australia Free Trade Agreement negotiations. Over the weekend, Zoellick was scheduled to meet with Agriculture Secretary Ann Veneman and EU Farm Commissioner Franz Fischler to discuss the WTO agricultural trade negotiations. On July 28, Zoellick was scheduled to meet with EU Trade Commissioner Pascal Lamy and hold bilateral meetings with other delegations. View USTR press release (no longer available)

Request for Comments Concerning China's Compliance with WTO Commitments

The Office of the U.S. Trade Representative has issued a Federal Register notice stating that the interagency Trade Policy Staff Committee (TPSC) will convene a public hearing and seek public comment to assist USTR in its preparation of its annual report to the Congress on China's compliance with the commitments that it made in connection with its accession to the WTO. Persons wishing to testify orally at the hearing must provide written notification of their intention, as well as a copy of their testimony, by noon, Friday, September 5, 2003. Written comments are due by noon, Wednesday, September 10, 2003. A hearing will be held in Washington, DC, on Thursday, September 18, 2003. Information on how to submit comments is included in the Federal Register notice.

View text of Federal Register notice

House Passes Chile and Singapore Free Trade Agreements

On July 24, the House of Representatives approved by wide margins free trade agreements (FTAs) with Singapore and Chile, which are likely to serve as a catalyst for future free trade initiatives. Commenting on the vote, U.S. Trade Representative Robert Zoellick said that, in addition to pursuing further bilateral FTAs, the U.S. will continue to press "aggressively" for global free markets in WTO trade liberalization talks. The Bush administration is currently negotiating FTAs with Morocco, Central America, Australia, and the Southern African Customs Union (SACU), and is proposing to start FTA talks with Bahrain. The WTO negotiations will reach a mid-point September 10-14 at the ministerial meeting in Cancun, Mexico. View text of Zoellick statement (no longer available)

WTO: General Council Extends Timeframe to Review Dispute Settlement Rules

At its July 24, 2003 meeting, the WTO General Council agreed to extend negotiations in the Dispute Settlement Body Special Session, which is reviewing WTO rules for dispute settlement. The timeframe was extended from May 31, 2003 to May 31, 2004. View information on Dispute Settlement Understanding negotiations

Morocco FTA Congressional Caucus Launched

On July 22, U.S. Trade Representative Robert Zoellick and Moroccan Minister Delegate of Foreign Affairs and Cooperation Taib Fassi-Fihri attended the launch of the Morocco Free Trade Agreement (FTA) Congressional Caucus on Capitol Hill. The Caucus was formed to promote the U.S.-Morocco FTA to Congress and will serve as the first Congressional Caucus launched in support of President Bush's vision of a Middle East Free Trade Area (MEFTA). Zoellick commented, "This agreement is an important component of America's commitment to expand economic opportunity throughout the Middle East and the Mahgreb region and is an integral part of the President's plan to create a Middle East Free Trade Area within a decade." The U.S. expects to complete negotiations on the agreement by the end of the year. View text of USTR press release (no longer available)

USPTO/WIPO Program Prepares Asia-Pacific Judges for WTO Intellectual Property Rights Compliance

The U.S. Patent and Trademark Office (USPTO) and the World Intellectual Property Organization (WIPO) co-sponsored a July 14-18 seminar for 16 supreme and appellate court judges from the Asia-Pacific region. The program exposed the judges to a wide range of policy considerations and challenges that their national court systems face in implementing the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which establishes international standards for enforcement of intellectual property rights. Under Secretary of Commerce for Intellectual Property James E. Rogan, who stated that piracy is costing the U.S. economy billions of dollars in lost sales, wages and tax revenues, said that USPTO is focusing "significant attention on the enforcement of intellectual property rights abroad and on combating piracy.” The program was a first of its kind for jurists of this level and rank. The participants, who came from Bangladesh, Cambodia, India, Indonesia, Mongolia, Nepal, Pakistan, Philippines, Sri Lanka, and Thailand, are the judges who interpret the law and often have a direct say in the management and administration of the judicial and court system in their respective countries.

View text of USPTO press release

U.S. Concerned by Efforts to Alter Intellectual Property Law

During his July 22 testimony before the House Agriculture Committee, Deputy Under Secretary of Commerce for Intellectual Property Jon Dudas said that the U.S. is deeply concerned by efforts to substantially change the standards for protecting intellectual property rights in geographical indications (GIs). Dudas said the revisions sought by some U.S. trading partners in the WTO would undermine valuable intellectual property rights by treating GIs – which are considered valuable business interests and protected under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) – solely as trade interests and ignoring intellectual property principles. He noted that, although the TRIPS Agreement establishes minimum standards, it does not lay down the system to protect GIs. In the absence of international consensus on such a system, Dudas said, some countries, primarily those in the EU, are trying to advance a protection framework that would deprive U.S. and other producers, trademark owners and consumers of the existing TRIPS-related benefits by extending protection to generic names such as feta for a certain kind of cheese and sherry for a certain kind of wine. The U.S., Australia, New Zealand, Canada, Chile and a coalition of other countries sponsored a paper in the WTO outlining why the existing TRIPS Agreement provides sufficient protection for the GIs of all WTO members. Dudas said that while the EU demands stronger protection for its own GIs, it is denying the TRIPS protection for other countries' GIs. He said that the U.S., which provides what he called robust protection for GIs, is particularly concerned by what appears to be systematic discrimination against U.S. GI owners in the EU.

View text of Dudas's statement to the House Agriculture Commitee

WTO Working Party Completes Cambodia’s Membership Negotiation

The WTO working party handling Cambodia’s membership negotiation completed its work on July 22, leaving a final decision approving membership for the Cancún Ministerial Conference, to be held in September. Cambodia is now on target for its membership to be approved at the next Ministerial Conference, although it can only become a member 30 days after it has ratified the agreement and informed the WTO. This would make Cambodia the first least-developed country to join the WTO through the full working party process since the WTO was set up in 1995. Cambodia applied to join the WTO in late 1994. After the accession package was adopted, H.E. Mr. Cham Prasidh, Minister of Commerce and Chief Negotiator for Cambodia, said, “In a time of harsh and fierce global competition, the survival of our country depends on our ability to capture the right opportunities and at the right time. We believe the entry to the WTO is such a case.”

View text of WTO news release

USTR Releases Fact Sheets on Chile and Singapore FTAs

View the texts of two fact sheets on the Chile and Singapore FTAs: Chile and Singapore: Temporary Entry of Professionals Fact Sheet (no longer available), and Singapore: Integrated Sourcing Initiative Fact Sheet (no longer available)

Secretary Evans on Expanding Freedom Through Trade

In July 17 remarks to the Los Angeles World Affairs Council, Secretary of Commerce Donald Evans discussed how open trade and the freedom that trade spreads can transform failing societies and expand opportunity to people around the world. In his speech, the Secretary discussed how a successful Doha round of trade negotiations can benefit developed and developing countries. Secretary Evans stated, “The disparity between those that have and those that don’t is morally unacceptable. . . because we know the most reliable means to end their suffering.” View text of Secretary Evans’ remarks (no longer available)

USTR Releases TPA Reports on Chile and Singapore

Pursuant to Section 2102(c)(4) of the Trade Act of 2002 and Executive Orders 13277 (2002) and 13141 (1999), USTR provides the following Final Reviews of the U.S.-Chile and U.S.- Singapore Free Trade Agreements. (links no longer available) For Chile: Environment, Employment Impact, Labor Rights, Child Labor For Singapore: Environment; Employment Impact; Labor Rights; Child Labor

USTR Issues Federal Register Notices on Generalized System of Preferences

USTR has issued two notices pertaining to the Generalized System of Preferences (GSP). In the first notice,USTR extended the deadline for the submission of petitions for the 2003 Annual GSP Product and Country Eligibility Practices Review to September 2, 2003. Notification of which petitions are accepted for the 2003 Annual GSP Review and of other relevant dates will be published in the Federal Register. In the second notice,USTR announced the initiation of a review to consider the designation of Algeria as a beneficiary developing country under the GSP program and solicits public comment relating to the designation criteria. Comments are due August 15, 2003 in accordance with the requirements for submission explained in the Federal Register notice. For more information, contact the GSP Subcommittee, Office of the United States Trade Representative (USTR), 1724 F Street, NW., Room F-220, Washington, DC 20508. The telephone number is (202) 395- 6971 and the facsimile number is (202) 395-9481.

WTO Panel Sides with U.S. Regarding Japan's Apple Restrictions

In a July 15 press release, the Agriculture Department and USTR stated that a WTO panel has agreed with the U.S. that Japan's import restrictions on U.S. apples are not justified and are in breach of Japan's WTO obligations. According to the press release, Japan imposes severe restrictions on imported U.S. apples allegedly to protect Japanese plants from a disease known as fire blight, but the U.S. holds that there is no scientific evidence that harvested apples can transmit the disease. Agriculture Secretary Ann Veneman stated, “We applaud the WTO ruling against Japan’s restrictive requirements for U.S. apple imports. This action should lead to markedly improved access conditions for U.S. apple growers and allow us to realize the full potential of this important market.” U.S. Trade Representative Robert Zoellick commented, “We are committed to ensuring a level playing field for our farmers, and will not accept others' unfounded use of supposed plant health regulations to distort and restrict trade." View text of press release (no longer available)

U.S. to Appeal WTO Ruling Against Steel Duties

On July 11, USTR spokesperson Richard Mills said that the U.S. will appeal a WTO panel final ruling against U.S. imposition of temporary higher duties on steel imports under Section 201 of U.S. law. Mill stated that the U.S. duties will remain in place. He said that the Section 201 duties, imposed in March 2002 and reduced by 20 percent in March 2003, do comply with WTO obligations and do work as intended to help the U.S. industry restructure. He added that imports from many developing countries and a number of steel products were excluded from the duties. View text of USIS Washington File report (includes text of Mills’ statement)

U.S. Comments on EU's Draft Chemicals Regime

The U.S. is keenly interested in the EU’s proposed comprehensive regulatory framework for chemicals, known as REACH -- Registration, Evaluation, and Authorization of Chemicals -- in part because the new regime could affect the majority of U.S. goods exported to the EU, valued at $143,000 million in 2002. In a statement made to the European Commission during a public comment period that ended July 10, the U.S. said that while it shares the EU's interest in ensuring the protection of the environment and human health, it has a number of concerns about the EU's approach to the issue. Because the proposal “appears to discount substantial and ongoing resource constraints facing governments and industry...the Commission's proposed regulatory approach raises fundamental questions about its...ability to effectively achieve its health and environmental policy objectives. View USIS Washington File report (includes text of U.S. comments on EU's draft chemicals regime)

Malaysia: U.S. Voices Concern over Move to Control CD, DVD, and Software Prices

While visiting Malaysia, Commerce Assistant Secretary for Market Access and Compliance William Lash III expressed concern over Kuala Lumpur’s initiative to control the prices of CD, VCD, DVD and computer software, stating, “There is a need to focus on the battle against piracy and not to compete against the price.” On July 4, Domestic Trade and Consumer Affairs Minister Tan Sri Muhyiddin Yasin announced a two-week deadline for CD, VCD, DVD and software producers to agree on a mechanism to lower prices of the products in an effort to combat piracy. Once the control mechanism is in place, individuals found selling items higher than the regulated prices face fines of RM15,000 and two years’ jail while corporate bodies can be fined RM25,000. Lash, who met with senior government officials and industry representatives to discuss intellectual property rights protection, said that the purpose of his meetings was not to coerce, but to convey US concern over the proposed price control. Market forces will compel producers based in the U.S., which owns 70 percent of disc copyrights, to shift to more lucrative markets, Lash warned. View text of The New Straits Times Press article View text of Borneo Bulletin Online article View text of CNET Asia article View text of Malaysiakini article View text of Reuters article

Commerce Department Unveils CE Mark Website

The Commerce Department’s Trade Information Center and Office of European Union and Regional Affairs combined to produce CE Mark guides providing step-by-step instructions to help U.S. exporters self-certify for three directives which cover a huge amount of products: the machine, low-voltage, and electromagnetic compatibility directives. The website can be accessed at: http://www.ita.doc.gov/td/tic/ce_mark/ceindex1.htm. The CE Mark shows that a company has met European health and safety requirements that are required for a product to be sold in Europe.

Congressional Committees Advance Chile, Singapore Trade Deals

Drafts of bills to implement the Singapore and Chile free trade agreements (FTAs)have easily won informal approval from three of the four congressional committees having jurisdiction over relevant issues. After the July 10 informal actions of the Senate Finance Committee and the House Ways and Means and Judiciary Committees, U.S. Trade Representative Robert Zoellick said the administration plans to submit the legislative packages formally in time for Congress to pass them before its August recess. The Chile and Singapore FTAs are the first agreements Congress is considering under the 2002 law on trade promotion authority. Zoellick said the administration would submit the Chile and Singapore FTAs formally the week of July 13. Although the Chile and Singapore agreements appear to face no serious opposition, House Democrats made clear they oppose using their labor provisions as a model in the Central American Free Trade Agreement (CAFTA) now under negotiation. Zoellick reiterated that the administration seeks to conclude the CAFTA negotiations in 2003. He said that some Central American countries are moving toward labor law reform and that the administration was working with Central American governments to improve their labor standards.

View Washington File report

Multilateral Organizations to Enhance Trade-Related Aid

In a July 10 joint communiqué, the IMF, World Bank, WTO, and three UN agencies said they they have made progress in their efforts to help integrate least developed countries (LDCs) into the world trading system and the global economy. The member-organizations of the so-called Integrated Framework (IF) said that their diagnostic studies have provided a sound policy basis for the delivery of technical assistance and trade capacity-building, which they characterized as "central" to realizing the development benefits of trade. To build on the progress, the organizations said, they commit to help countries integrate their diagnostic studies into national development plans and, more specifically, step up assistance on trade-related infrastructure, private sector development and institution building. The organizations said that the efforts and commitment of LDCs must be matched by a pro-development outcome in the WTO trade negotiations.

View text of communiqué

Zoellick Says U.S. Trade Strategy Maintains Momentum Toward Openness

In a July 10 Wall Street Journal op-ed article, U.S. Trade Representative Robert Zoellick stated that the U.S. will not retreat from its efforts to open markets, especially when its reinvigoration of America's drive for free trade has created a momentum that strengthens U.S. influence. It is critical, he stated, for the U.S. and the EU to propel the WTO Doha trade and development agenda. He said the U.S. is urging the EU to translate reform of its Common Agricultural Policy changes into aggressive international proposals. The U.S. would also welcome leadership from Japan, which has benefitted so much from the international trading system. Should the U.S.’s drive for global free trade be blocked by countries which “hide behind the false security of protectionism,” the U.S. will work with countries which believe true economic strength is achieved through openness. The strategy, he said, is simple: the U.S. is spurring a competition in liberalization. That is why the U.S. has pressed forward with a portfolio of free trade agreements while doing all it can to make the WTO negotiations succeed, Zoellick stated.

View text of Zoellick article

Washington to Press Ahead with Plans to Take GMO Moratorium to WTO

According to an Associated Press report, Commerce Assistant Secretary for Market Access and Compliance William Lash III said that the U.S. is pushing ahead with its plan to take a dispute over the EU’s moratorium on biotech food to the WTO, a ban which he termed immoral. Speaking to reporters in Rome, Mr. Lash stated, "It's important we get this trial done at the WTO and the court of public opinion to have sound science finally making a final statement on this important challenge.” EU officials have been working on a system that would allow them to label genetically engineered food so that European customers can choose whether to buy it.

View text of AP report

U.S. Concerned that EU's Biotech Labeling Could be Burdensome

On July 3, a State Department spokesperson said the U.S. is concerned that proposed EU regulations for labeling biotech foods could be needlessly burdensome and lead to the imposition of a new set of non-tariff barriers when the international community is trying to expand global trade. The spokesperson stressed that any regulation must protect consumer health and safety while maximizing consumer choice. He reiterated that the EU’s moratorium on new biotech approvals "is not based on scientific analysis, it blocks consumer choice, and jeopardizes the benefits biotechnology offers to the environment and to feeding the world's hungry."

View text of USIS Washington File report

U.S. and India Hold Talks on Stimulating High-Technology Commerce

On July 2, the U.S. and India held the first full meeting of the U.S.-India High-Technology Cooperation Group (HTCG), which was formed in November 2002 to facilitate and promote bilateral high-technology trade, including trade in dual-use goods and technologies. During the meeting, which was led by Under Secretary of Commerce Kenneth Juster and Indian Foreign Secretary Kanwal Sibal, the two sides discussed a wide range of issues relevant to creating the conditions for more robust bilateral high-tech commerce, including market access, tariff and nontariff barriers, strategic trade, and export controls. Deputy Under Secretary for Technology Ben Wu and Deputy Assistant Secretary for Information Technology Industries Michelle O'Neill chaired a session that focused specifically on trade issues. On July 1, more than 20 senior executives from U.S. and Indian companies at the forefront of high-tech commerce between the two countries participated in the U.S.-India High Technology Cooperation Group’s "Financing Innovation Forum." The next meeting of the HTCG is expected to be held in Delhi, India later this year.

View text of Bureau of Industry and Security press release

Request for Public Comment on Duty Drawback/Deferral in FTA Negotiations

The Trade Policy Staff Committee (TPSC) is seeking public comment on the treatment of duty drawback and deferral regimes in free trade agreement (FTA) negotiations currently underway with Central America, Australia, Morocco, the Southern African Customs Union, and the countries participating in the Free Trade Area of the Americas (FTAA). All interested parties are invited to provide their written views and recommendations on this matter by noon on July 30, 2003. Persons submitting comments should specify whether the comments apply to all or only some of the FTA negotiations currently underway. For procedural questions concerning public comments, contact Gloria Blue, Executive Secretary, Trade Policy Staff Committee, Office of the USTR, at (202) 395-3475. For substantive questions pertaining to this request for public comment, contact Sarah Sipkins, Director for Market Access, Office of the USTR, at (202) 395-5656.

View text of Federal Register notice

President Bush Extends Trade Benefits for Developing Countries by $900 Million

On July 1, President Bush signed a proclamation expanding the product coverage of the Generalized System of Preferences (GSP) program, under which more than 140 beneficiary developing countries and territories import products duty-free into the U.S. The President's proclamation extends GSP benefits to approximately $900 million in imports from these countries through the addition of new products, restoration of previously lost benefits, and the continuation of benefits that would otherwise expire. The proclamation underscores the Administration's commitment to provide trade opportunities to developing countries as a way to encourage broad-based economic development. GSP was reauthorized last August as part of the Trade Act of 2002. Last year, imports valued at more than $17.5 billion entered the U.S. duty-free under this program. (links no longer available) View text of President Bush’s proclamation on GSP View text of USTR press release View text of Federal Register notice on GSP program

Zoellick to Meet with Caribbean Trade Ministers

According to a June 30 press release, U.S. Trade Representative Robert Zoellick will meet with Caribbean trade ministers in Jamaica on July 2 to discuss the Free Trade Area of the Americas (FTAA), global trade talks, trade capacity-building and bolstering trade ties between the U.S. and the Caribbean. Zoellick noted that the U.S. has forged economic ties with the region through the Caribbean Basin Initiative. He added that the 30th anniversary of the Caribbean Community and Common Market (known as Caricom) is a "fitting occasion" to continue to promote economic integration through trade. View USTR press release (no longer available)