March 2003 News

Puerto Rico: Commerce Under Secretary Aldonas Discusses Benefits of Trade During Visit

View the text of the ITA press release regarding Under Secretary of Commerce for International Trade Grant Aldonas’s March 29-April 1 visit to Puerto Rico, where he will meet with senior government officials and business leaders to discuss the Bush Administration's trade agenda and ways Puerto Rican companies can take advantage of increased trade liberalization to grow their economy and create better and higher paying jobs. Commenting on his visit, Mr. Aldonas stated, "Puerto Rico is our bridge to the Americas, and our futures are tied. Open markets and free trade strengthen the imperative for democracy, and provide hope for a brighter and more secure future for the people of our hemisphere. I look forward to working with the leaders of Puerto Rico to extend the benefits of free trade to the workers and citizens throughout the Americas."

U.S. Offers to Further Expand Access to its Services Sector in WTO Trade Talks

On March 31, USTR Robert Zoellick announced that the U.S. will offer to expand global access to the already open American services sector, as part of ongoing WTO negotiations to liberalize worldwide trade in services. The U.S. is the world's largest exporter of services, and this offer complements the U.S. request last summer that other WTO members open their markets to American services, which often face high barriers and impediments to doing business. The U.S. services offer is part of a long-term process of expanding choice and opportunity for U.S. consumers of commercially important sectors, in areas such as: insurance; banking and other financial services; telecommunications and information services; express delivery; environmental services and energy services. (links no longer available) View text of USTR press release View U.S. services offer (pdf) View fact sheet on U.S. services offer (pdf)

U.S.: Zoellick-Veneman Statement on Doha Development Agenda Negotiations

View the text (no longer available) of USTR Robert Zoellick’s and Agriculture Secretary Ann Veneman’s joint press release on the WTO Doha Development Agenda (DDA). In their press release, the two senior U.S. officials stated, "The United States is disappointed, but not surprised, that resistance to change and reform of the world agricultural trade stymied agreement on the modalities for cuts in subsidies and tariffs by the March 31 deadline.” They added, however, that “WTO participants need to keep working across the Doha Development Agenda, exploring ways to bring parties together, to match interests so that we can move the process toward higher common ground. As we do so, key participants may gain more flexibility to lower barriers to world agriculture.”

China: Commerce Department Monitors Implementation of CCC Mark

The U.S. Commerce Department is closely monitoring China's implementation of the China Compulsory Certification (CCC) Mark. Tim Wineland of Commerce’s Market Access and Compliance (MAC) unit will provide a series of briefings in several U.S. cities in May on the CCC, and will report on his discussions with Chinese government officials about the CCC mark. In addition, an expert from a conformity assessment and testing firm will provide information during the briefings about the CCC Mark application process and a case study of a U.S. company that successfully applied for the CCC Mark.

Sri Lanka-U.S. TIFA Meeting

Sri Lanka and the U.S. held the second meeting of the Joint Council established under the Trade and Investment Framework Agreement (TIFA) on March 25. Deputy USTR Jon Huntsman headed the U.S. delegation; Commerce Deputy Assistant Secretary for Africa, the Middle East and South Asia Molly Williamson, who headed Commerce/Market Access and Compliance’s (MAC) delegation, addressed Sri Lanka’s investment climate. The U.S. delegation also addressed intellectual property protection and the need for further cooperation on the Doha Development Agenda. The Sri Lankan delegation, which was led by by Minister of Commerce and Consumer Affairs Karunanayake and Minister of Enterprise Development, Industrial Policy and Investment Promotion Peiris, notified the U.S. that they have submitted their new intellectual property rights law to Parliament, and indicated they had no plans to institute mandatory labeling for genetically-modified foods. The Sri Lankans gave an overview of the peace process and their economic development program and expressed their interest in the Container Security Initiative.

Development of China Trade 1995-2002

View the text of “Development of China Trade 1995-2002,” which has been prepared by the Trade Compliance Center. This paper provides information on China’s trade during this period, when total exports increased $177 billion. Both Chinese imports and exports more than doubled from 1995 to 2002; however, imports grew slightly more rapidly. In 1999, the U.S. became China’s largest export market; the U.S. currently purchases slightly over 21 percent of China’s exports.

Philippines: Optical Disk Piracy Continues

Philippines movie star Ramon "Bong" Revilla, who now chairs the Video Regulatory Board (VRB), said that VRB agents have seized an estimated $60 million worth of illicit goods since he took office in July 2002. He admitted, however, that since July 2002, the GOP has been unable to convict anyone of intellectual property violations due to resource limitations in the court system.

Commerce and USTR Announce Products to Be Excluded from Steel Safeguard Remedy and Automatic Adjustment of Remedy

On March 21, the Department of Commerce (DOC) and USTR announced the release of a set of products to be excluded from the steel safeguard remedy. DOC and USTR excluded 295 products from the remedy because it was determined that they are not currently available in sufficient quantities from U.S. producers and that excluding these products would not undermine the effectiveness of the safeguard on steel products. This announcement furthers the Administration's objective of providing relief only where needed in the steel industry and to avoid burdening U.S. steel consumers. (links no longer available) View text of DOC/USTR press release View fact sheet on products excluded from safeguard View list of additional products to be excluded from Section 201 safeguard measures

Australia and U.S. Kick Off Discussions on Free Trade Agreement

View the transcript (no longer available) of a March 21 media briefing by Australia’s (Stephen Deady) and the U.S.’s (AUSTR Ralph Ives) chief Free Trade Agreement (FTA) negotiators regarding their first round of FTA discussions, which were held March 17-21 in Australia. Deady characterized the discussions, which covered a wide range of issues across 15 separate negotiating groups, as productive, and noted that the two sides made arrangements for discussions over the next couple of weeks (probably via videoconferencing), on issues they did not discuss, including government procurement, telecommunications, e-commerce and financial services. AUSTR Ives commented that both sides approached the negotiations in a very positive, constructive and very cordial atmosphere. He noted that the U.S. delegation met with Australian private sector groups on March 19, which provided them with a much better appreciation for some of the views and interests of the private parties in Australia. View text of USTR Robert Zoellick’s remarks (no longer available) at launch of American-Australian Free Trade Agreement Coalition

USITC Report on Key Methods for Quantifying Economic Impact of Trade Liberalization

View the text of a U.S. International Trade Commission (USITC) press release regarding the January-February 2003 issue of the International Economic Review (IER), a publication of USITC's Office of Economics, which features a paper that examines three key methods for quantifying the economic effects of removing import restraints on production, trade, employment, and economic welfare. Although many methodological tools exist for analyzing these effects, three models are commonly employed by economists: gravity, partial equilibrium, and general equilibrium models. Each model has relative strengths and weaknesses, which are described in this paper. The IER is available at:http://www.usitc.gov

Request for Comment on Employment Impact of Proposed U.S.-Central America Free Trade Agreement

View the text (no longer available) of the Trade Policy Staff Committee’s Federal Register notice advising that USTR and the Labor Department are initiating a review of the impact of the proposed U.S.-Central America Free Trade Agreement (FTA) on U.S. employment, including labor markets. This notice seeks written public comment on potentially significant sectoral or regional employment impacts (both positive and negative) in the U.S., as well as other likely labor market impacts of the FTA. While USTR and Labor will accept any comments received during the course of the negotiations of the FTA. However, comments should be received by April 25, 2003, to be assured of timely consideration in the preparation of the report. Submissions can be sent via e-mail to: FR0071@ustr.gov; and via fax to: Gloria Blue, Executive Secretary, TPSC, Office of the USTR, at (202) 395-6143.

Commerce Assistant Secretary Lash Calls Nashville’s “Music Row” Important Exporting and Production Center

View the text (no longer available) of a Nashville City Paper article on Commerce Assistant Secretary for Market Access and Compliance William Lash’s March 18-19 visit to Nashville, where he discussed U.S. international trade policies with Belmont University students and met with local firms to discuss the challenges they face in international trading. When it comes to international compliance, President Bush is focused on finding out what American workers’ problems and challenges are, Lash said, noting that Tennessee is the No. 18 export market in the country with more than $11 billion a year in exports. Nashville Export Assistance Center Director Dean Peterson stated, “Assistant Secretary Lash has been in the forefront of the administration’s efforts to get other countries to be more vigorous in their enforcement of intellectual property issues — in particular, issues related to piracy, which are particularly important for the Nashville-based music industry.”

Vietnam: Nike Counterfeiter Loses Big

In an intellectual property rights (IPR) enforcement success story, the Ho Chi Minh City Economic Police wrapped up a case against a major counterfeiter of Nike footwear. Although fines relating to IPR violations were nominal because the case was handled as an administrative matter, local authorities assessed impressively large fines for tax evasion and confiscated supplies and production equipment totaling more than US$160,000. That the counterfeiter is politically well connected makes these IPR enforcement actions all the more significant as a positive sign of compliance with the bilateral trade agreement.

U.S. Announces Private Sector Leaders for U.S.-Japan Commission

View the text (no longer available) of the USTR press release announcing the eight U.S. business leaders chosen to join eight Japanese executives in developing economic reform recommendations for the U.S. and Japan. The group will meet with government officials from both sides on April 14 in Washington. Business leaders are chosen annually to participate in the U.S.-Japan Private Sector/Government Commission, which was launched on June 30, 2001 as an important component of the U.S.-Japan Economic Partnership for Growth by President Bush and Prime Minister Koizumi.

WTO: U.S. Submissions to Strengthen Rules Against Unfair Trade Practices

On March 19, the U.S. submitted two papers to the WTO which make the case for strengthening global trade rules against unfair trade practices, such as providing government subsidies to industries, and dumping - selling goods at unfairly low prices. The U.S. papers will be presented to the WTO Rules Negotiating Group, which is part of the ongoing WTO talks within the Doha Development Agenda. Included in the subsidy submission (“Subsidy Disciplines Requiring Clarification and Improvement”) as issues for consideration by the Rules Negotiating Group are: prohibition of additional types of subsidies – such as government debt-forgiveness; tougher rules for government loans and investment in private sector companies, and market prices for government sales of natural resources, such as timber and natural gas. In the other submission (“Identification of Certain Major Issues Under the Antidumping and Subsidies Agreements”), issues raised include: the special needs of producers of seasonal and cyclical agricultural products, due to their shorter growing seasons and perishable products, and the problem of persistent dumped and subsidized imports – as experienced by the U.S. steel industry over the years. The negotiations are centered around antidumping and subsidy/countervailing duty rules. (links no longer available) View text of USTR press release View Subsidy Disciplines Requiring Clarification and Improvement View Identification of Certain Major Issues Under the Antidumping and Subsidies Agreements

El Salvador: Pepsi Licensing Dispute Resolved in Pepsi's Favor

A dispute between Pepsico and its former local bottler, which had resulted in Pepsi losing control over its brand in El Salvador, was resolved in Pepsi's favor when the Supreme Court reversed itself and threw out its own injunction. This case underscores the need for U.S. investors to ensure that contracts are tightly drafted, that relations with local partners are carefully documented, that they have competent and ethical local counsel, and be aware that local courts can act capriciously.

USITC Begins Assessment of Singapore-U.S. FTA

On March 18, the U.S. International Trade Commission (USITC) instituted an investigation to assess the proposed Singapore-U.S. free trade agreement (FTA). As required by the Trade Act of 2002, USITC will assess the likely impact of the agreement 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 April 24, 2003; requests to appear at the hearing should be filed no later than 5:15 p.m. on April 10, 2003, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. USITC also welcomes written submissions for the record; such submissions should be addressed to the Secretary of the Commission at the above address and submitted no later than 5:15 p.m. on May 1, 2003. For further information, call 202-205-1816.

View text of USITC press release

Commerce Unveils Plan to Reduce Standards Trade Barriers

On March 19, Commerce Secretary Don Evans announced an eight-point Standards Initiative to help break down trade barriers, which he called “an effort to create a more level playing field around the world.” This effort responds to industry concerns that foreign standards and technical regulation issues are becoming one of the greatest challenges to expanding exports. Many in industry view foreign standards and technical regulation as a principal non-tariff barrier in markets around the world. Divergent standards, redundant testing and compliance procedures, and unilateral and non-transparent standard setting exercises are now recognized as major impediments to free trade, and are estimated to affect 80 percent of world commodity trade. The eight points are: 1) developing a Commerce Global Standards Activity Assessment; 2) reinforcing expertise in key markets; 3) devising an effective training and outreach program; 4) creating a “best practices” database; 5) expanding the Early Warning System; 6) partnering with the President’s Council on Standards Leadership; 7) reaching out to U.S. industry; and 8) appointing a liaison at the International Trade Administration. View Initiative to Enhance Commerce Department Standards Activities (no longer available)

Commerce Department Will Participate in Caribbean "Competitiveness" Meeting

Commerce Under Secretary for International Trade Grant Aldonas will lead the U.S. delegation to the April 1-2 "Competitiveness of the Caribbean" conference in Bridgetown, Barbados. The Commerce Department is helping to organize the conference, which sponsors say is designed to create a "greater sense of urgency in meeting the development challenges affecting the Caribbean." Conference participants will explore how the small economies of the region can broaden their mutually beneficial relationships with the U.S. and accelerate economic and business growth. Scheduled speakers at the conference include Prime Minister Owen Arthur of Barbados and President Enrique Bolanos of Nicaragua.

View text of USIS Washington File report

Commerce Department Leads Automotive Trade Mission to Hungary, Poland, and Slovakia

On March 17-21, the deputy director general of the U.S. Department of Commerce’s Commercial Service, Carlos Poza, will lead five U.S. executives on a business development mission to explore and expand export opportunities in Hungary’s, Poland’s, and Slovakia's automotive sectors. These three countries are among the group of 10 countries expected to join the EU in 2004. Upon accession, each country will have adopted the EU's common external tariff; in most cases, the new tariffs will be lower than the tariffs these countries currently apply to U.S. products. Understanding these important markets today will ensure that U.S. companies can take advantage of the opportunities that will result from the lower tariffs.

View text of Commerce press release

Ex-Im Bank Supports Financing for Equipment Sales to El Salvador and Mexico

On March 14, the Ex-Im Bank announced that it has approved financing to support the sale of over $8 million in U.S. equipment sales to El Salvador and Mexico. For El Salvador, Ex-Im Bank approved a $1.47 million comprehensive medium-term insurance policy to support the sale of new heavy construction equipment to a private sector buyer. For Mexico, Ex-Im Bank approved two comprehensive medium-term policies: 1) a $5.39 million guarantee to support the sale of a mainstream 80 Heidelberg printing press system; and 2) a $1.18 million guarantee to support the sale of poultry feeder and incubation equipment.

View text of Ex-Im press release

Federal Maritime Commission Head Discusses Japanese and Chinese Ports Practices

During March 13 remarks to the transportation subcommittee of the House Committee on Transportation and Infrastructure, Federal Maritime Commission (FMC) head Steven Blust stated that Japan maintains an essentially protectionist system for its maritime ports. Such practices, he said, often impose high costs and inefficiencies on U.S. and other foreign shipping lines. While the revised harbor transportation business law has made some changes in Japanese practice, Blust said that it has not been enough to resolve longstanding US concern. Blust expressed hope that this problem could be addressed through bilateral talks, and noted that the U.S. will continue to monitor the situation. At the same time, Blust noted that China is making progress in resolving a similar access problem; the FMC is currently reviewing the implementing rules of a January 2002 Chinese maritime law.

Saudi Arabia: Merck Wins in First-ever Tribunal Decision

In a sign of the increasing level of intellectual property rights protection in Saudi Arabia, the Saudi Government’s Patent Committee upheld the patent rights of U.S. pharmaceutical company Merck Sharp & Dohme against copycat products produced by a Saudi firm. The legal ruling was based on Saudi patent law and procedures, the Sharia (Islamic law), Saudi Arabia’s membership in WIPO, and TRIPs requirements; the SAG is following the TRIPs agreement as part of its path to joining the WTO. While granting MSD patent protection, the committee strictly limited the time period of protection and denied compensatory damages.

BIAC Endorses Tariff Elimination in Doha Development Agenda

View the text (pdf) of the Business Industry Advisory Committee’s (BIAC) priorities and recommendations for the Doha Development Agenda, which it submitted to the OECD on February 20. BIAC is an independent organization recognized by the OECD and its 30 member governments to provide policy recommendations on a broad set of issues. Upon submitting its priorities and recommendations, BIAC stated, "For over 50 years, the disciplines of the GATT/WTO system have made a major contribution to the economic growth and improved living standards around the world. On this basis, the business community of the OECD member countries continue to support broad-based, balanced, trade negotiations under the WTO 'Doha Development Agenda' as a matter of high priority.” Among other recommendations, BIAC said negotiators should pursue elimination of all industrial tariffs by a date certain.

Commerce Task Force to Assist with EU Compliance Issues

View the text of an article which appeared in the March 13, 2003 National Association of Manufacturers’ Trade Bulletin regarding the Commerce Department’s Western Europe Compliance Task Force. The task force was established within the Market Access and Compliance (MAC) unit of Commerce’s International Trade Administration to identify, address and resolve market access and compliance problems in the European Union, as well as in Turkey, Iceland, Switzerland, Norway, Cyprus and Malta. If U.S. companies experience trade barriers outside of these countries, they should contact the Department of Commerce’s Trade Compliance Center at http://www.export.gov/tcc. For more information on the task force, go to: http://www.trade.gov/exportamerica/NewOpportunities/no_w_europe_0203.html

EU Will Revise Batteries Directive

The EU’s Directorate General for the Environment is planning to revise the Directive on waste and recycling of batteries and accumulators and has issued a consultation document to stakeholders. The proposal would expand the scope and coverage and set higher recycling targets for each type of battery; producers will be expected to finance all aspects of battery collection, treatment and disposal. While previous efforts to revamp the battery directive focused on prohibiting the use of certain batteries, the current proposal would only ban Ni-Cd types in cases where “commercially viable substitutes are available.” Stakeholders have until April 28, 2003 to submit comments to DG Environment.

View the text of EU consultation document

U.S. Entertainment Sector Pledges Strong Support for Chile and Singapore FTAs

On March 13, representatives from the U.S. entertainment industry and members of Congress joined USTR Robert Zoellick to launch the Entertainment Industry Coalition for Free Trade. The coalition includes members of the motion picture and recording industries, theater owners, video game producers, and television programmers who recognize the importance of economic openness and trade to U.S. entertainment businesses and workers. "Having the support of the entertainment industry for our recently completed free trade agreements with Singapore and Chile, which include state of the art intellectual property protections, will help us set new standards internationally," Zoellick said. Additionally, in the Chile agreement, tariffs for all U.S. entertainment products were eliminated (Singapore had no such tariffs). International sales accounted for about half of the entertainment sector's $500-plus billion in sales last year. Copyright-based industries employ approximately 4.7 million Americans, including writers and technical workers, and account for more than 5 percent of U.S. GDP. View text of USTR press release (no longer available)

Argentina-U.S. Trade Consultations

On March 13, Argentine and U.S delegations met for trade consultations which, according to the delegation chairs, were helpful in addressing a full range of issues. At a post-meeting press conference, DUSTR Peter Allgeier indicated that discussions included ongoing WTO talks, with a focus on U.S.-Argentine shared objectives in advancing as ambitious an agenda as possible for agricultural reform; the FTAA; and bilateral issues, including expansion of the Generalized System of Preferences program for Argentina. Argentine Vice Minister of Foreign Relations Martin Redrado observed that the GSP program has been very useful in allowing Argentina to "trade out" of its current economic crisis.

View text of USIS Washington File report

USITC Begins Assessment of Chile-U.S. FTA

On March 12, the U.S. International Trade Commission (USITC) instituted an investigation to assess the proposed Chile-U.S. free trade agreement (FTA). As required by the Trade Act of 2002, USITC will assess the likely impact of the agreement on the U.S. economy as a whole and on specific industry sectors and the interests of U.S. consumers. USITC has begun its assessment, and it will seek public input for the investigation when a public version of the agreement is made available by USTR. USITC will issue a follow-up Federal Register notice and media advisory when it schedules this portion of its investigation.

View text of USITC press release

Products Accepted for Review in 2002 GSP Annual Review

View the text of a Federal Register notice advising that, in 2001 and 2002, USTR received petitions to modify the list of products that are eligible for duty-free treatment under the Generalized System of Preferences (GSP) program, and to modify the GSP status of certain GSP beneficiary developing countries because of country practices. This notice announces the combined product petitions from both 2001 and 2002 that are accepted for review in the 2002 GSP Annual Review, and sets forth the schedule for comment and public hearing on these petitions, for requesting participation in the hearing, and for submitting pre-hearing and post-hearing briefs. The list of country practice petitions accepted for review will be announced in the Federal Register at a later date. For more information, contact the GSP Subcommittee of the Trade Policy Staff Committee, Office of the United States Trade Representative, 1724 F Street, NW., Room F-220, Washington, DC 20508; phone: (202) 395-6971; fax (202) 395-9481.

U.S. Grants Romania Market Economy Status

On March 10–two weeks after visiting Romania at the request of President Bush–Commerce Secretary Don Evans announced that Romania is now designated a market based-economy. Secretary Evans commented, “Romania is a valued friend and trading partner, and I congratulate all Romanians for making positive changes and achieving market economy status. As a result of the designation, the U.S.’s countervailing duty law will now apply to Romania, according to the press release. Furthermore, Commerce will now use the standard market economy methodology in antidumping cases once a sufficient period of time has passed so that adequate market economy data is available. Commerce must consider several criteria in determining an economy’s status, including: the extent of currency convertibility; free bargaining for wage rates; foreign investment; government ownership or control of production; government control over the allocation of resources; and other appropriate factors. View USIS Washington File Report (includes text of Commerce press release) (no longer available)

View text of Commerce/Import Administration Decision Memorandum on Romania's Non-Market Economy Status (pdf)

U.S. and Dominican Republic Hold Trade Talks, Issue Joint Statement

In a March 7 press release, USTR announced that the United States-Dominican Republic Trade and Investment Council (TIC) convened in Santo Domingo on March 6 in an effort to deepen bilateral trade ties. Discussions focused on multilateral, regional and bilateral issues, and the Dominican government informed the U.S. of its efforts to foster agreement on WTO issues and to advance the Free Trade Area of the Americas process. During the TIC talks, the Dominican government reiterated its interest in pursuing a free-trade agreement with the U.S. The U.S. expressed its willingness to consider options, such as including the Dominican Republic in the ongoing Central America Free Trade Agreement (CAFTA) talks.

View text of USIS Washington File report (includes text of USTR press release)

WTO: Negotiators Agree on Modalities for Treatment of Autonomous Liberalization

On March 6, the Special Session of the Council for Trade in Services took a key step towards fulfilling the Doha Development Agenda (DDA) by adopting modalities for the treatment of liberalization measures taken unilaterally by WTO Members since the previous multilateral negotiations. WTO Director-General Supachai Panitchpakdi, who chairs the Trade Negotiations Committee which supervises the DDA, declared, “A significant part of the negotiating mandate has been achieved today.” He added, “This agreement should inject new dynamism not only in the services negotiations but also in other areas of the Doha Agenda.”

View text of WTO press release

U.S. Publishes Singapore FTA Text; Full Chile Text Expected at End of March

On March 7, the U.S. published the U.S.-Singapore Free Trade Agreement (FTA) (no longer available), an 800-plus page document spanning the 21 chapters of the FTA. It includes the agreement's complete timetables for eliminating duties on bilateral trade, rules of origin for goods and the detailed schedules of commitments in services and investment, including financial services. The Administration also published 24 detailed issue summaries of the U.S.-Chile FTA(no longer available), and anticipates that the full text of that agreement will be made public at the end of this month. Commenting on the Singapore and Chile FTAs, USTR Robert Zoellick declared, "These are first-rate, leading edge agreements that will benefit American workers, farmers, consumers and industry. By releasing the texts well before these agreements are signed, and months before Congress will vote on them under TPA procedures, the public and interested parties will have ample time to review for themselves the results of our negotiations." View text of USTR press release (no longer available)

U.S. Financing for Exports to Mexico, Afghanistan

On March 7, the Ex-Im Bank announced that it approved a $400 million long-term loan guarantee enabling 95 U.S. exporters and suppliers to sell up to $447 million of oil and gas field equipment and services to Petroleos Mexicanos (PEMEX) in Mexico. This transaction is the fourth and final conversion of a $1.1 billion preliminary commitment authorized by Ex-Im Bank in September 2002 to support U.S. exports for PEMEX projects. PEMEX will use the equipment and services financed under this latest loan guarantee for its New Pidiregas Projects (NPP) to enhance production at 23 existing natural gas and crude oil exploration sites on and off-shore near the Bay of Campeche. After a March 4 meeting with Afghan President Karzai, the U.S. Overseas Private Investment Corporation (OPIC) pledged an additional $50 million line of credit, bringing the total to a minimum of $100 million in support of U.S. private sector investment in Afghanistan. OPIC announced two projects that promote private sector investment in Afghanistan. One project is the construction of a five-star international hotel in Kabul to be managed by Hyatt International, to which OPIC anticipates providing $35 million in financing and political risk insurance. In the second project, OPIC is providing political risk insurance to enable a U.S. manufacturer to donate a compressed earth block machine for the construction of three schools. View text of Ex-Im Bank press release (no longer available)

View text of OPIC press release

U.S. Seeks WTO Dispute Settlement to Examine Canadian Wheat Trading Practices

View the text of the USTR press release announcing that the U.S. will seek the formation of a WTO dispute settlement panel to examine Canada's wheat-trading practices. The U.S. panel request "challenges Canada's requirements to segregate imported wheat in the Canadian grain-handling system and Canada's discriminatory policy that affects the access of U.S. grain to Canada's rail transportation system."

China: USTR Seeks Public Comments Regarding Restrictions on Imports of Hangers

USTR is publishing notice of proposed restrictions with respect to imports of the subject steel wire garment hangers from China. USTR invites domestic producers, importers, exporters, and other interested parties to submit their views and evidence on the appropriateness of the proposed restrictions and whether they would be in the public interest. USTR also invites interested parties to participate in a public hearing (if requested). On February 5, five U.S. International Trade Commission (USITC) commissioners recommended that President Bush impose additional duties on U.S. imports of wire garment hangers from China, although their recommendations varied somewhat. President Bush will make the final decision about whether to impose any tariffs at all and what the level should be.

Mexico: Seeking Comments on Conformity Assessment Policies/Procedures for Certification and Verification

On March 4, the Government of Mexico (GOM) published in its Official Gazette the current text of the Conformity Assessment Policies and Procedures – Certification and verifications procedures of products subject to compliance with Official Mexican Standards issued by the Secretariat of the Economy. The intention of the publication is to gather comments from interested parties on possible changes and modifications to the current procedures in order to develop new proposed procedures. The new proposed procedures, once developed, will in turn be published for a 60-calendar day public comment period. Interested parties in the US are encouraged to submit comments, suggestions, and observations about the current policies and procedures (in Spanish) to the Dirección General de Normas (DGN), located at Avenida Puente de Tecamachalco número 6, colonia Lomas de Tecamachalco, sección Fuentes, Naucalpan de Juárez, código postal 57950, Estado de México, Telephone 011 52-55-5729-9489 and Fax 011 52-55-5520-9715. For additional information about this report please contact: Ivan Rios, Ph.D. Commercial Attaché US Embassy Mexico City Tel. 011 52-55-5140-2600 Fax. 011 52-55-5566-1115 E-mail: Ivan.Rios@mail.doc.gov

Commerce Secretary Evans Launches Bush Administration's Manufacturing Agenda

At a March 5 appearance before the National Association of Manufacturers’ Conference in Chicago, Commerce Secretary Don Evans released the Bush Administration's pro-growth manufacturing agenda, which establishes clear priorities to enhance economic growth and create better paying jobs in the manufacturing sector. Among the key elements of the manufacturing agenda is to make it a priority to open new markets for U.S. manufacturers through the elimination of all industrial tariffs within 10 years for WTO members, and to push for new bilateral free trade agreements and a Free Trade Area of the Americas. View Commerce Department press release (no longer available) View Bush Administration’s Manufacturing Agenda (no longer available)

Brazil-Uruguay: Commerce Assistant Secretary Lash Discusses FTAA, Other Issues

Commerce Assistant Secretary for Market Access and Compliance William Lash visited Brazil and Uruguay February 23-28. During his three-day visit to Brazil, where he met with a variety of government officials and industry executives, Assistant Secretary Lash attempted to ease Brazilian misgivings on the Free Trade Area of the Americas by stating that nothing would be left off the negotiating table. In response to Brazilian criticism of the U.S.’s initial offer on the FTAA, Mr. Lash stated, “This is not the final offer, we're prepared to negotiate and we'll still discuss areas such as subsidies, agriculture and intellectual property." Speaking to reporters after meeting with Uruguayan Presidency Secretary Leonardo Costa, Mr. Lash said Uruguay must open up its telecommunications and public procurement markets. View articles on Assistant Secretary Lash’s visits to Brazil and Uruguay Assistant Secretary William Lash Meets with Brazilian Officials in Brasilia US promises progress in FTAA negotiations with Brazil U.S. trade official in Brazil to discuss hemisphere-wide free trade area Trade buoys Brazil's fourth-quarter growth US govt presses Uruguay to open up telecom, public procurement markets

Georgia: Commerce Assistant Secretary Lash Emphasizes Importance of Global Economics

View the text of a March 5 Savannah (Georgia) Morning News article regarding Commerce Assistant Secretary for Market Access and Compliance William Lash’s appearance at Savannah State University, where he spoke about the potential China’s markets hold for U.S. businesses. However, he noted some of the challenges China poses for U.S. exporters: While some of China's major cities are able to follow international trade standards, once you get further out into the provinces, such protections are harder to enforce. While there are risks with foreign trade, for the Georgia Ports Authority (GPA), China has proven to be a boon. China is the largest trading partner sending products to Savannah, which now ranks second, behind New York/New Jersey in terms of East Coast ports trading with China, said Robert Morris, a GPA spokesman.

Thailand Begins Campaign to Halt Music, DVD Piracy

View the text of an Agence France Presse article reporting on Thailand’s upcoming campaign to stop the pirating of music and video discs. Pirated CDs, VCDs and DVDs are freely available in Thailand, which industry sources say is considered a major global exporter of pirated CDs. This campaign follows on the heels of Commerce Assistant Secretary for Market Access and Compliance William Lash’s February visit, who noted that the U.S. loses some $250 million annually due to goods piracy in Thailand.

USTR Zoellick Discusses Administration’s Trade Agenda

In a March 5 statement to the Senate Finance Committee, USTR Robert Zoellick noted the Administration’s accomplishments on trade and laid out its agenda for future work, which includes pressing forward with global, regional, and bilateral trade negotiations, and monitoring and enforcing existing trade agreements, notably China’s and Taiwan’s compliance with their WTO obligations. This year, according to Zoellick, the U.S. will seek to resolve existing trade cases, including: Mexican telecommunications and sweeteners; Canadian softwood lumber; EU beef; and U.S. apple exports to Japan. View text of Zoellick statement to Senate Finance Committee (no longer available)

Korea: Standardization and Conformity Assessment

View the text of Standardization and Conformity Assessment in the Republic of Korea, which was prepared by the Commerce Department’s National Institute of Standards and Technology (NIST). This report describes the national standardization and conformity assessment system in the Republic of Korea. Although it provides a general overview of the Korean standards and conformity assessment, most contents in the report pertain to activities carried out by the Korean Agency for Technology and Standards (KATS) of the Ministry of Commerce, Industry and Energy; KATS serves as the Korean national standardization body.

USITC Investigates Possible Modifications to U.S. Generalized System of Preferences

View the text of a U.S. International Trade Commission (USITC) press release noting that the Commission is seeking input for a newly initiated investigation concerning possible modifications of the Generalized System of Preferences (GSP). As requested, USITC will provide advice as to whether any industry in the U.S. is likely to be adversely affected by the addition of certain items to the GSP, including various agricultural products, non-high definition color TVs, and flat-panel color video monitors. In addition, the Commission will provide advice as to the probable economic effect on U.S. industries producing like or directly competitive articles and on consumers of the removal of Russia from eligibility for duty-free treatment under the GSP for other titanium articles imported under HTS subheading 8108.90.60. The ITC is seeking input for its new investigation from all interested parties and requests that the information focus on the articles for which the ITC is requested to provide information and advice. The ITC will hold a public hearing in connection with the investigation at 9:30 a.m. April 8, 2003. Requests to appear at the public hearing should be filed no later than 5:15 p.m. on March 17, 2003, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.

Rwanda: Eligibility of Textile and Apparel Exports for AGOA Benefits

View the text of the Federal Register notice advising that imports of eligible products from Rwanda qualify for the textile and apparel benefits provided under the African Growth and Opportunity Act (AGOA). USTR has determined that Rwanda has adopted an effective visa system and related procedures to prevent unlawful transshipment and the use of counterfeit documents in connection with shipments of textile and apparel articles and has implemented and follows, or is making substantial progress toward implementing and following, the customs procedures required by AGOA.

Mexico: Proposed Conformity Assessment Policies and Procedures for Labeling

On February 26, the Government of Mexico (GOM) published in its Federal Gazette proposed conformity assessment policies and procedures to demonstrate compliance with some labeling requirements in the border area and region. These proposed policies apply only to labeling requirements in Official Mexican Standards (NOM) issued by the Secretariat of the Economy. NOMs issued by the Secretariat of the Economy can be identified by the letters -SCFI- as part of their titles. These proposed policies and procedures are open for public comments for 60 calendar days from the date of publication. Interested parties in the US are encouraged to submit comments in Spanish to the Dirección General de Normas (DGN), located at Avenida Puente de Tecamachalco número 6, colonia Lomas de Tecamachalco, sección Fuentes, Naucalpan de Juárez, código postal 57950, Estado de México, Telephone 011 52-55-5729-9489 and Fax 011 52-55-5520-9715. The text of the proposed conformity assessment policies and procedures for labeling requirements in the border region is available (in Spanish) in the proposed conformity assessment policies and procedures, and from the DOF publication of February 26, 2003. The DOF is available from the web site of the Secretariat of Governance – www.segob.gob.mx.

Jamaica Increases Use of Non-Tariff Barriers

While Jamaica has reduced their tariff rates significantly since the 1980s -- fulfilling GATT/WTO commitments and its World Bank-sponsored economic reform plan -- it has increased the use of the less transparent non-tariff barriers (NTBs) as a form of disguised protection. The Government of Jamaica (GOJ) has even made the slowing of non-tariff barrier removal an explicit component of its national trade policy. Although GOJ officials claim they are implemented consistently and universally, formal NTBs (e.g., safety standards, labeling and health certifications) have become significant impediments to trade with Jamaica. Two possible avenues of restraining future Jamaican NTB use are through the Doha round of WTO talks and FTAA talks.

USITC Commercial Availability Review of Apparel Made with Lastol Elastic Yarn

View the text (no longer available) of March 3 U.S. International Trade Commission (USITC) anouncement that the Commission has commenced a review to provide advice in connection with a petition filed under the “commercial availability” provisions of the U.S-Caribbean Basin Trade Partnership Act (CBTPA) and the African Growth and Opportunity Act (AGOA) on apparel made with lastol elastic yarn. The Commission’s review concerns a petition received by the Committee for the Implementation of Textile Agreements from Dow Chemical Company alleging that the subject yarns cannot be supplied by the domestic industry in commercial quantities in a timely manner. The USITC will provide advice to USTR concerning the probable economic effect on affected segments of th U.S. textile and apparel industries, workers in these industries, and consumers of granting duty-free and quota-free treatment to apparel made in eligible CBTPA and AGOA countries from the subject yarns should CITA determine that the yarns cannot be supplied by the domestic industry in a timely manner. The Commission invites interested parties to submit written statements concerning issues to be addressed by March 21, 2003.

USITC Institutes Section 337 Investigation on Certain Sildenafil

View the text of the U.S. International Trade Commission (USITC) press release noting that, on March 3, the Commission voted to institute an investigation of certain sildenafil or any pharmaceutically acceptable salt thereof, such as sidenafil citrate, and products containing same. The product at issue in this investigation is the active ingredient in the pharmaceutical "Viagra." The investigation is based on a complaint filed by Pfizer alleging violations of section 337 of the Tariff Act of 1930 in the importation into the U.S., the sale for importation, and the sale within the U.S. after importation of certain sildenafil or any pharmaceutically acceptable salt thereof, such as sidenafil citrate, and products containing same that violate a patent owned by Pfizer. The complainant requests that the ITC issue a permanent general exclusion order and permanent cease and desist orders.