May 2003 News

Commerce Under Secretary Bond Visits Brazil and Uruguay

Phillip J. Bond, under secretary of commerce for technology, will visit Uruguay and Brazil during the week of June 2nd, the Commerce Department has announced. In a May 29 press release, Commerce said that Bond's visit is aimed at strengthening hemispheric high-tech partnerships. Bond will be discussing issues related to Secretary Evans' eight-point Standards Initiative to break down trade barriers in the global marketplace, which the National Institute of Standards and Technology (NIST) and the International Trade Administration (ITA) are charged with implementing. Bond is also expected to discuss such topics as the Free Trade Area of the Americas, respect for intellectual property and transparent business practices, e-government, and e-commerce.

View text of Commerce press release

U.S. Officials Cite Benefits of Free-Trade Pact with Central America

In May 29 remarks a forum called "From [Hurricane] Mitch to CAFTA," U.S. Agency for International Development (USAID) Assistant Administrator for Latin America and the Caribbean Adolfo Franco and Assistant U.S. Trade Representative for the Americas Regina Vargo underscored the benefits of a U.S.- Central American free-trade agreement (CAFTA). Franco said the CAFTA will build on progress Central America has made over the past several decades in overcoming a series of natural disasters, economic degradation, and military conflicts. Vargo called CAFTA the centerpiece of the U.S. approach to helping Central America. In turn, she said CAFTA will strengthen prospects for enactment of the proposed Free Trade Area of the Americas, stretching from Canada to Chile.

View text of USIS Washington File report

2003 Comprehensive Report on Implementation of African Growth and Opportunity Act

USTR has submitted to Congress the 2003 Comprehensive Report of the President on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the African Growth and Opportunity Act. This is the third of eight annual reports required under AGOA, and it received input from several offices and agencies, including the Commerce Department. Many important milestones were achieved during the past year in the expansion of AGOA and the strengthening of the U.S.’s trade and economic relationship with the countries of sub-Saharan Africa, including the passage of AGOA II, which significantly enhanced AGOA’s apparel benefits; the announcement of negotiations for a U.S. free trade agreement with the Southern African Customs Union (SACU); and a significant increase in African exports under AGOA, especially of non-fuel goods. AGOA is also encouraging U.S.-African cooperation in the World Trade Organization (WTO), supporting efforts to extend and expand on trade liberalization across the globe. AGOA is the cornerstone of the Bush Administration’s trade and investment policy toward sub-Saharan Africa, which is promoting free markets, expanding U.S.-African trade and investment, stimulating economic growth, and facilitating sub-Saharan Africa’s integration into the global economy. View text of 2003 Comprehensive Report on Implementation of AGOA (no longer available)

U.S. and Chile to Sign Free Trade Agreement

On May 27, USTR announced that the U.S. and Chile will sign their bilateral Free Trade Agreement on June 6 in Miami. U.S. Trade Representative Robert Zoellick will sign the agreement on behalf of the United States, and Chilean Foreign Minister Soledad Alvear will sign for Chile. View USTR press release (no longer available)

WTO: Supachai Lauds Progress on Goods Market Access Talks, Seeks Movement on Dispute Settlement

On May 28, WTO Director-General Supachai Panitchpakdi praised negotiators from WTO member governments for their progress in negotiating reductions in barriers to trade in manufactured products, and urged governments to apply greater effort to narrow differences and agree on the framework for continuing work. Supachai expressed some disappointment that governments had not succeeded in meeting the May 31 target they had set for agreeing on the framework for negotiations in non-agricultural market access, but stressed that good progress had been made so far and that agreement on the modalities is within reach, provided governments build on this work. Supachai also urged member governments to find a pragmatic way forward in their negotiations on improvements and clarifications to the Dispute Settlement Understanding (DSU).

View WTO press release: Supachai comments on manufactured goods market access talks

View WTO press release: Supachai comments on Dispute Settlement Understanding

WTO Study on Adjusting to Trade Liberalization

On May 23, the WTO Secretariat issued a special study which seeks to identify tools at the disposal of governments to smooth adjustments to liberalizations in trade. Among the conclusions of “Adjusting to Trade Liberalization — The Role of Policy, Institutions and WTO Disciplines,” are that adjustment costs are typically smaller, sometimes much smaller, than the gains from trade, and that adjustment costs can be reduced if trade policy reforms are underpinned by international commitments. View text of WTO press release (offsite link) View text of WTO study (pdf, offsite link)

Commerce Under Secretary Aldonas Discusses Chinese Trade Problems, Potential

During May 22 testimony before the House, Commerce Under Secretary for International Trade Grant D. Aldonas said that the U.S. government "aggressively pursues China's compliance with its trade obligations." He told members of the House Appropriations Subcommittee on Commerce, Justice, State, the Judiciary, and Related Agencies that "ITA's compliance office has initiated and addressed 275 investigations ... which comprises 17 percent of all cases and more than any other country or economic area.” These cases, he explained, include investigations of possible violation of a multilateral or bilateral trade agreements, other market barriers and unfair trade practices, and commercial disputes where a U.S. company has encountered problems with an existing transaction or venture.

View text of Aldonas Prepared Testimony

Japan Commits to Cut Barriers to Foreign Direct Investment in Meeting with U.S.

As outlined in the Second Joint Report to the Leaders on the U.S.-Japan Regulatory Reform and Competition Policy Initiative, the Japanese Government is committing to take concrete steps to reduce barriers to foreign direct investment (FDI) in Japan. Japan is also creating more than 100 deregulation zones and taking other important regulatory steps to spur its economy and further open its markets to U.S. companies. The joint report was released at the conclusion of the summit between President Bush and Prime Minister Koizumi at Crawford, Texas on May 22-23. USTR Robert Zoellick commended Japan’s steps, commenting, "The reforms included in this report in key areas such as telecommunications, information technology, and energy will boost productivity in Japan, and help to create jobs, improve competitiveness, and bolster the economy." President Bush and Prime Minister Koizumi launched the Regulatory Reform Initiative in June 2001 at Camp David as an important component of the U.S.-Japan Economic Partnership for Growth. In a May 23 statement, State Department spokesperson Richard Boucher noted that Secretary of State Colin Powell welcomed the Japanese Government’s commitment to take concrete steps to reduce barriers to FDI. (links no longer available) View text of USTR press release View Second Joint Report View fact sheet on 2003 Joint Report View USIS Washington File report

Trade is Key to Growth and Sustained Development, USAID Official Says

Adolfo Franco, the U.S. Agency for International Development’s (USAID) assistant administrator for Latin America and the Caribbean, said May 23 that because trade spurs the economic growth needed for sustained development, USAID is implementing comprehensive capacity-building programs in the Western Hemisphere to ensure that the benefits of globalization are enjoyed by all. In remarks before the National Convention of the Association of Peruvian Institutions in the U.S. and Canada, Franco outlined the importance and benefits of trade, as well as USAID's efforts to build the capacity of hemispheric nations to reap these benefits. However, he warned his audience that ignorance of the benefits of trade could undermine support for continued economic liberalization in Latin America. To counter such a development, Franco explained, President Bush has stated the U.S. intends to "make sure the benefits of globalization are felt in even the smallest economies." View text of USIS Washington File report (includes text of Franco’s remarks)

U.S. Courts Brazil for Free Trade Plan

According to a May 23 South Florida Sun-Sentinel article, the U.S. is vigorously attempting to sign Brazil onto the Free Trade Area of the Americas (FTAA) so that smaller countries will also sign the agreement. The paper quoted Commerce Assistant Secretary for Market Access and Compliance William Lash III as telling participants at the Commerce Department’s annual Western Hemisphere Business Conference in Coral Gables, Florida, that plans are being made for the first U.S.-Brazil summit, signaling a sense of mutual respect unprecedented between the two countries. Mr. Lash commented, "To make the Free Trade Area of the Americas economically significant, you have to have the largest country in Latin America as a player.” Lash said talks with the months-old Brazilian administration already have produced results. Brazil now recognizes that a crackdown on intellectual property piracy would help protect Brazilian artists in their home market of more than 170 million residents, Lash stated.

View text of South Florida Sun-Sentinel article

Commerce Assistant Secretary Lash Comments on FTAA

The St. Louis Post-Dispatch reported that, in comments marking World Trade Week, on May 22 Commerce Assistant Secretary for Market Access and Compliance William Lash III told representatives of small and mid-sized businesses who are interested in expanding trade with Latin America that “the FTAA (Free Trade Area of the Americas) is the big game.” The key to getting the FTAA framework ready for congressional approval is bilateral trade talks with Brazil, Mr. Lash said. The Assistant Secretary stated that when Brazilian and U.S. negotiators resolve their differences, other Latin American countries -- which already have begun to harmonize their trade policies through the regional agreements -- can be expected to get on board, and added that Congress could ratify the pact as soon as 2005 under the new trade promotion authority.

View text of St. Louis Post-Dispatch article

U.S. and Bahrain Announce Intent to Negotiate Free Trade Agreement

On May 21, White House Press Secretary Ari Fleischer announced that the U.S. and Bahrain will seek to negotiate a Free Trade Agreement (FTA). Such an agreement, he stated, would be a major step toward achieving the Middle East free trade area proposed by President Bush on May 9, 2003. After meeting with Bahrain Crown Prince Shaikh Salman Bin Hamad Al-Khalifa, USTR Robert Zoellick commented, "A U.S.-Bahrain FTA could serve as a regional anchor for the Gulf facilitating greater economic integration and reforms, and leading toward the eventual goal of a Middle East Free Trade Area. The United States already has free trade agreements with Israel and Jordan, and we hope to complete the negotiations for an FTA with Morocco by the end of this year.” View text of USTR press release (no longer available)

Commerce Secretary Evans Highlights Progress on National Export Strategy, Export.gov Website

In May 21 testimony before the Senate Committee on Banking, Housing and Urban Affairs, Commerce Secretary Donald Evans reported on the Bush Administration’s 2003 National Export Strategy. Evans highlighted the Trade Promotion Coordinating Committee's (TPCC) progress implementing recommendations made last year to give American businesses the tools they need to grow through exporting. The Secretary also announced the enhancement of http://www.export.gov. This website is the USG’s portal of export-related programs and information for small businesses and serves as the entry-point for U.S. businesses that want to learn how to export, obtain financing, or locate foreign market research to expand or enter new export markets. It consolidates export information from the 19 federal agencies of the TPCC into one user-friendly website and is a key component of the “International Trade Process Streamlining Initiative” -- one of 24 designated Presidential E-Government initiatives across the federal government. The new design makes the site easier to use and adds new features to help guide new exporters through the export process. View text of Commerce Department press release (no longer available)

USTR Zoellick Urges Agriculture Reforms by EU for WTO Success

During his May 21 testimony before the House Agriculture Committee, USTR Robert Zoellick said that EU reform of its Common Agricultural Policy (CAP) is critical to successful WTO negotiations. He said that, without substantial CAP reform, the WTO negotiations cannot achieve reform of global agricultural trade. To provide the special and differential treatment needed by developing countries, one idea is to negotiate steep tariff cuts while offering these nations safeguards for temporary restrictions on imports that would displace subsistence farmers, he said. View text of USTR Zoellick’s statement to House Agriculture Committee (no longer available)

USAID Unveils New Trade Capacity Building Strategy

On May 19, U.S. Agency for International Development (USAID) Administrator Andrew Natsios unveiled the agency’s new Trade Capacity Building Strategy. The strategy is designed to generate needed economic growth in developing countries using global economic forces such as trade, investment, competition, human resource development, technology transfer and innovation. USAID’s Trade Capacity Building Strategy will help meet the Bush Administration’s National Security Strategy goal of igniting a new era of global economic growth through free markets and free trade. USAID will help developing country partners to: a) strengthen developing country participation in international trade negotiations; b) implement international trade agreements; and c) support trade, investment and other market-oriented activities.

View text of USAID press release

Commerce Secretary Evans’ Proclamation for World Trade Week

View the text of Commerce Secretary Donald Evans’ Proclamation for World Trade Week. In his message, the Secretary notes that trade is key to U.S. economic growth and job creation, and that small businesses in particular benefit from exporting. Small and medium-sized businesses comprise 97 percent of U.S. exporters; these businesses “are the backbone of the U.S. economy, creating most of the jobs in America.” The Commerce Department is working hard to assist these companies to expand their exports; in 2002, Commerce’s U.S. Commercial Service network helped facilitate more than $21 billion in exports.

Commerce Secretary Evans Calls Open Trade Key to Global Economic Progress

In May 19 remarks to the Hispanic Business Roundtable, Commerce Secretary Donald Evans stated that the U.S. views free trade and free enterprise as the keys to unlocking the potential of countries around the world. The Secretary said that 12 million U.S. jobs depend on exports, and that exports are "one of the best hopes for returning healthy growth to the U.S. economy." Evans called Latin America a "dynamic, diverse, and growing market" for U.S. exporters, with U.S. trade in goods and services to Latin America and the Caribbean currently valued at more than $200 billion annually. He pointed out that two-way trade with Mexico alone amounted to $233 billion in 2002. View text of Secretary Evans’ remarks to Hispanic Business Roundtable (no longer available)

Philippines-U.S.: Presidents Arroyo and Bush Comment on Economic and Trade Ties

In the Joint Statement issued by the White House May 19 regarding Philippines President Gloria Macapagal-Arroyo’s meeting with President Bush during her state visit, the two Presidents expressed great pride in the robust economic and trade ties that bind the two countries. President Arroyo welcomed the revival of the bilateral Trade and Investment Framework Agreement (TIFA) and agreed to resolve issues identified in its Trade and Investment Council consultations. President Arroyo welcomed the U.S. decision to provide tariff-free Generalized System of Preferences (GSP) benefits to specific products requested by the Philippines and the offer of additional technical and capacity building assistance on the protection of intellectual property rights. President Bush welcomed President Arroyo's determination to pursue reforms in revenue collection, energy privatization, and intellectual property rights protection.

View text of U.S.- Philippines Joint Statement

WTO: Market Access Chairman Issues First Draft of “Modalities” Paper

On May 16, the chairman of the Non-Agricultural Market Access Negotiating Group, Ambassador Pierre-Louis Girard, circulated the first draft of the “modalities” paper (offsite link) to member governments, ahead of the May 26-28 meeting of the Negotiating Group. The “modalities” are targets for achieving the objectives of the negotiations. Due to be established by May 31, 2003, they will set parameters of the final agreements to be reached by January 1, 2005.

View text of WTO news item

President Bush Proclaims World Trade Week, 2003

View the text of President Bush’s Proclamation of May 18-24, 2003 as World Trade Week. In his Proclamation, the President renewed the U.S.’s “commitment to developing and implementing trade policies that create new opportunities and promote global economic growth.” President Bush added, “This week, we recognize the importance of free trade in promoting prosperity and freedom in the United States and around the world.”

G-8 Finance Ministers Reaffirm Agenda of Global Growth and Reform

In a statement issued May 17 (in advance of the June 1-3 G-8 summit in Evian, France), G-8 finance ministers set out a broad agenda to encourage economic growth and implement needed structural reforms. Regarding trade and economic growth, the finance ministers stated their determination “to achieve the objectives and overall timetable set out in the Doha Development Agenda and to ensure that the Cancun ministerial takes the decisions necessary to reach these goals. Commitments taken must be fulfilled.” The ministers asked French Minister of Economy, Finances, and Industry Francis Mer to report to the Heads of State and Government in advance of the Evian summit on these issues, with a view to delivering on these commitments in order to meet the Millennium Development Goals. View text of USIS Washington File report (includes text of G-8 finance ministers' statement)

Poland: U.S. Wants to Step Up Economic Cooperation

A May 13 PAP report quoted Commerce Assistant Secretary for Market Access and Compliance William Lash as stating that the U.S. is interested in bringing Polish-US economic cooperation to a level comparable with that of bilateral political and military collaboration. In talks with Polish government officials, Lash discussed ways to encourage bilateral trade and reduce bureaucratic obstacles to the activities of U.S. firms in Poland. Lash also held talks on US Steel’s possible participation in the privatization of Polish steel mills. One of the goals of Mr. Lash's trip was to prepare for Commerce Secretary Donald Evans’ visit to Poland this fall.

View text of PAP report

Russia: Duma Approves New Customs Code

On April 25, Russia's Duma approved a new Customs Code. The new Code requires that the custom clearance process begin immediately after submission of a customs declaration, stipulates that goods are to be cleared within three instead of 10 days, and that any conflicts over interpretation should be resolved within 15 days. Also under the new Code, equipment imported under certain leasing contracts will be duty-free for three years, after which customs duties will kick in (and at this point, the duties will be based on the leased good's depreciated value). While some observers praise these elements of the law, others remain concerned that the new Code still will allow broad leeway for discretionary interpretation by customs officers, once it takes effect on January 1, 2004.

WTO: Preshipment Inspection Update

View the text of the WTO’s fourth update (as of April 24, 2003) regarding countries using preshipment inspection (PSI) regimes. It presents information which is compiled for the WTO by the International Federation of Inspection Agencies (IFIA) Pre-Shipment Inspection Committee in response to a request by the WTO.

U.S. and Jordan Exchange Instruments of Ratification for Bilateral Investment Treaty

In Amman on May 13, Secretary of State Colin Powell and Jordanian Foreign Minister Dr. Marwan Muasher exchanged instruments of ratification for a Bilateral Investment Treaty (BIT). The treaty goes into effect 30 days after the exchange. The treaty is the most recent in a series of groundbreaking economic agreements between the U.S. and Jordan, and provides Jordanian investors in the U.S. and U.S. investors in Jordan with the highest standard of international protection for the security of their investments.

U.S. Committed to Timely Negotiation of FTAA, Says USTR Official

In a May 13 statement before the Senate Subcommittee on International Trade, Deputy USTR Peter Allgeier stated that the Bush Administration is committed to the timely and successful negotiation of a Free Trade Area of the Americas (FTAA), and added that USTR is working to ensure that the November 2003 meeting of hemispheric trade ministers in Miami is a success. He said that the negotiations are now entering a “crucial stage.” In accordance with established deadlines, all FTAA-eligible countries have exchanged proposed schedules for eliminating tariffs on agricultural and non-agricultural goods. With the U.S. and Brazil co-chairing FTAA negotiations, Allgeier said the two nations share the responsibility of bringing the process to a successful conclusion by the established 2005 deadline.

View text of USIS Washington File report

China: Meeting with Certification and Accreditation Administration on CCC Mark Implementation

In April, U.S. Commercial Service, Embassy and Trade Facilitation Office staff organized a meeting on China Compulsory Certification (CCC) mark implementation with the Certification and Accreditation Administration (CNCA) and high-tech industry representatives. The meeting was designed to be the first of a series of meetings in which U.S. diplomats and industry representatives could work with CNCA to address some of industry's concerns on CCC mark implementation. Demonstrating a willingness to work with industry, CNCA was open and frank in addressing questions. Using the information provided by CNCA, U.S. Commercial Service/Beijing has prepared questions and answers on CCC mark implementation to be used as a wider outreach tool.

U.S., Cooperating Countries File WTO Case Against EU Moratorium on Biotech Foods and Crops

On May 13, USTR Robert Zoellick and Agriculture Secretary Ann M. Veneman announced that the U.S., Argentina, Canada, and Egypt will file a WTO case against the EU over its illegal five-year moratorium on approving agricultural biotech products. Other countries expressing support for this case by joining it as third parties include: Australia, Chile, Colombia, El Salvador, Honduras, Mexico, New Zealand, Peru and Uruguay. Secretary Veneman commented, "With this case, we are fighting for the interests of American agriculture. This case is about playing by the rules negotiated in good faith. The European Union has failed to comply with its WTO obligations. Biotechnology is helping farmers increase yields, lower pesticide use, improve soil conservation and water pollution and help reduce hunger and poverty around the world.” Numerous organizations, researchers and scientists have determined that biotech foods pose no threat to humans or the environment. View text of USDA news release

World Economic Agencies Call on G-8 to Give Push to Doha Talks

WTO Director-General Supachai Panitchpakdi, IMF Managing Director Horst Köhler, and World Bank President James Wolfensohn, in a joint statement at the WTO General Council meeting on coherence on 13 May 2003, appealed to the G-8 leaders to “provide the political guidance that is needed to allow the trade negotiations to move forward again before the WTO Ministerial Conference in Cancún in September.” The economic agency heads noted that, while it essential for the G-8 members to grant better market access to developing countries so they can increase their economic growth, the developing countries need to make trade integration a “central plank of their development and poverty-reduction strategies.” They called on the G-8 to provide “more focused and generous technical and financial support” to help the poorest countries “build the human, institutional and physical capital needed to improve trade opportunities and to integrate the(m)... successfully into the world economy.” View text of joint statement (Offsite link, includes links to statements by agency heads)

U.S. Signs Treaty to Facilitate Cross-border Financing of Large Commercial Aircraft, Aircraft Engines

On May 9, the U.S. signed the Convention on International Interests in Mobile Equipment and the accompanying Protocol on Matters Specific to Aircraft (the Cape Town Convention). The Convention establishes an international law system to support cross-border transactions in aircraft and engines (high value equipment) through modern methods of asset finance, already in place in the U.S. under the Uniform Commercial Code. It provides for creation of international finance rights and optional provisions on remedies and insolvency rights, designed to give greater security to financiers of highly mobile aircraft in markets where country or business risk would not otherwise support such transactions. The Administration is seeking Senate ratification of the Cape Town Convention.

View Ex-Im Bank press release

U.S. and Canada Reach Agreement to End Illegally Subsidized Dairy Exports to U.S.

On May 9, USTR and the U.S. Department of Agriculture announced an important settlement with Canada resulting in major revisions to Canada's subsidy programs for its dairy exports. The U.S. recently won a WTO case that ruled that Canada was continuing to provide illegal subsidies to its dairy industry. As a result of the settlement, Canada has agreed to eliminate these subsidies. It will no longer export subsidized dairy products to the U.S., and will significantly limit subsidized dairy exports destined for third countries. View text of USTR press release (no longer available)

WTO: Supachai Calls for Action on Priority Issues before Cancun Ministerial

In May 9 remarks to the WTO Trade Negotiations Committee, Director-General Supachai Panitchpakdi stated that a clear priority for about a dozen issues requiring action in or before the Cancún Ministerial Conference in September is to reduce the load to “manageable proportions” by reaching understanding on as many of these issues as possible. He urged members to keep in mind in the coming weeks that “the importance of the benefits this Round can offer to all participants is such that we cannot allow any issue to become a roadblock to progress elsewhere.”

View text of Supachai’s statement to Trade Negotiations Committee

President Bush Calls for U.S.-Middle East Free Trade Area

In a May 9 address at the University of South Carolina, President Bush outlined a plan to create a U.S.-Middle East Free Trade Area within a decade, “to bring the Middle East into an expanding circle of opportunity, to provide hope for the people who live in that region." Building on the U.S.’s FTAs with Israel and Jordan, the U.S. will take a series of graduated steps which include: helping reforming countries become WTO members; negotiating Bilateral Investment Treaties and Trade and Investment Framework Agreements with governments determined to improve their trade and investment regimes; and completing negotiations with Morocco on an FTA by the end of this year. View transcript of Senior Administration Official Background Press Briefing (no longer available)

View transcript of President’s remarks

View USTR fact sheet on U.S. Middle East FTA

U.S. Remains Committed to Chile Free Trade Deal, Zoellick Says

In remarks to a conference on Free Trade Agreements sponsored by the Institute for International Economics (IIE), USTR Robert Zoellick told said he expects President Bush to sign the U.S.-Chile Free Trade Agreement (FTA) and send it to Congress for approval in 2003. One day earlier, two Democratic members of Congress addressed the IIE conference and criticized the Bush administration for not having scheduled a signing ceremony for the Chile agreement, which was concluded towards the end of 2002. Zoellick, who devoted the bulk of his remarks to a lengthy list of factors that determine which countries are chosen as potential free-trade partners, said that "cooperation -- or better -- on foreign policy and security issues" is one of the criteria he considers. The U.S. is currently holding free trade talks with Australia, Morocco, five countries in Central America and members of the Southern African Customs Union. View USIS Washington File report Assistant USTR Regina Vargo told the House Subcommittee on Commerce, Trade and Consumer Protection that the U.S.-Chile FTA will help level the playing field for U.S. companies in Chile and allow them to better compete in one of the world's fastest-growing markets. She explained that Chile already has trade agreements with Canada, Mexico, the South American trading bloc known as MERCOSUR, and the EU, placing U.S. companies at a disadvantage and costing them an estimated $1 billion in exports annually. She cited four features which distinguish the U.S.-Chile FTA from other trade agreements: it is comprehensive, promotes transparency, is modern, and uses an innovative approach that supports and promotes respect for environmental protection and human rights. View USIS Washington File report

Assistant USTR Calls Singapore Trade Pact Model for Region

In May 8 testimony before a House subcommittee, Assistant USTR Ralph Ives told lawmakers that the U.S.-Singapore Free Trade Agreement (FTA) could serve as a model for other such trade agreements in the region. Ives told the House Energy and Commerce subcommittee on Commerce, Trade and Consumer Protection – which was holding a hearing to assess the implications of this trade agreement and others the administration is working to conclude – that the Singapore FTA provides important protection for American investors in Singapore. It is also "innovative and state-of-the-art in a number of other ways, including its protection of intellectual property rights," he added. The agreement builds on the WTO Agreement on Trade-related Intellectual Property Rights and "provides strong protection for new and emerging technologies and reflects standards of protection similar to those in U.S. laws."

View USIS Washington File report

U.S. and Singapore Sign Free Trade Agreement

On May 6, President Bush and Prime Minister Goh Chok Tong signed the U.S.-Singapore Free Trade Agreement (FTA) and celebrated the strength and vitality of the U.S. -Singapore bilateral relationship. In the signing ceremony and in their Oval Office meeting, the two leaders expressed conviction that the FTA, the first ever between the U.S. and an Asian nation, would enhance mutual prosperity and reinforce the strategic partnership between the two nations. The two leaders expressed hope that the FTA would be a catalyst for trade liberalization and enhanced growth in the region and beyond. In this regard, the President and the Prime Minister reaffirmed their commitment to achieving a successful outcome in the WTO’s Doha Development Agenda trade negotiations. The President also reaffirmed his commitment to the Enterprise for ASEAN Initiative (EAI), which he launched at APEC in 2002 with leaders from the Association of Southeast Asian Nations (ASEAN). View more information on U.S.-Singapore FTA (no longer available)

View text of White House statement

Philippines: Regional Court Affirms Piracy Verdicts

On May 4, the Philippine Daily Inquirer reported that the Legazpi City Regional Trial Court affirmed the 1998 verdict of a Legazpi City municipal trial court judge convicting a husband-wife team for CD and DVD piracy. The regional court sentenced the two to jail terms and assessed fines. The conviction came just a month after another court found seven Indonesians and five Chinese guilty of producing pirated video discs. In an April 21 letter to Videogram Review Board (VRB) Chairman Revilla, Commerce Assistant Secretary for Market Access and Compliance William Lash commended Revilla for his anti-piracy efforts, according to a VRB statement. While Mr. Lash commended the VRB chief for his role in the seizure of an estimated $60 million worth of pirated discs in the past year, he added that much work remains, stating that "only a climate of sustained enforcement, which includes the real possibility of conviction coupled with stiff sentences, will reduce the overall levels of piracy in the Philippines."

View text of Philippine Daily Inquirer article

WTO: Supachai Says End of Textile Quotas Will Strengthen Organization

During a May 5 speech at the Conference on the Future of Textiles and Clothing after 2005, WTO Director-General Supachai Panitchpakdi said “there is no question that the multilateral trading system will be strengthened by the full implementation of the WTO Agreement on Textiles and Clothing” at the end of 2004. Supachai also noted the December 2004 deadline for the Doha Development Agenda (DDA), which may have a significant bearing on international trade in textiles and clothing (e.g., tariff reductions). He stated, “...it is crucial that both of these processes (i.e., the end of textile quotas and the DDA) complement each other in building a more open and dynamic world trading regime.”

View text of Supachai speech

Colombia-U.S.: President Uribe, Commerce Secretary Evans Discuss Trade, Investment and Cooperation

On May 2, Colombian President Alvaro Uribe and Commerce Secretary Don Evans held discussions aimed at deepening and strengthening commercial relations between the two countries, including resolving critical trade and investment issues. Central to the discussions on trade and investment were benefits conferred by the 2002 Andean Trade Promotion and Drug Eradication Act. Secretary Evans also stressed the importance of Colombia’s participation and leadership in the ongoing Free Trade Area of the Americas (FTAA) negotiations. View text of Commerce press release (no longer available)

Aldonas Calls US-Europe Commercial Ties "Ballast" to Relationship

Commerce Under Secretary of Commerce for International Trade Grant Aldonas visited Brussels to discuss U.S.-European economic relations and, more specifically, to reinforce the Transatlantic Business Dialogue (TABD). At an April 28 press briefing, Under Secretary Aldonas described basic commercial interactions between the U.S. and Europe as the "ballast in a relationship where there is always going to be some amount of political friction." Mr. Aldonas called the TABD "a very useful forum for discussion" and said the U.S. wants to ensure that it "evolves with the times so that it becomes a continual source of valuable information and input."

View USIS Washington File report

Haiti: Lash Underscores Need to Protect Investors

Following his recent visit to Haiti, Commerce Assistant Secretary for Market Access and Compliance William Lash told the Associated Press that the Government of Haiti (GOH) must reassure investors that laws will be respected and enforced if it is to attract industry and benefit from hemispheric free trade. To keep U.S. investors interested, Haiti's government must reinforce land tenure and contract laws, and deal openly with creditors, including the World Bank and the Inter-American Development Bank, Lash said.

View text of Associated Press article

Commerce Assistant Secretary Lash Comments on EU’s Proposed Chemicals Policy

In an April 24 interview with Inside U.S. Trade, Commerce Assistant Secretary for Market Access and Compliance William Lash stated that the EU’s proposed chemicals policy is a trade barrier but could also pose a problem for European businesses. Assistant Secretary Lash said the pending policy is an example of an environmental policy "driving the [European] economy to the brink," adding that this could have consequences for the global economy, which needs an economically strong Europe. The U.S. government and industry groups have warned that the proposed European rules would cost billions to implement and may violate international trade agreements because they would restrict trade more than necessary to protect human health and the environment. U.S. industry groups also fear that the new policy could set a new standard for chemicals that could lead to international bans of products that have been available commercially for years, and have been approved for use in the U.S.

View text of Inside U.S. Trade article

Zoellick Notes Need for EU Farm Subsidies Reform, Supachai Calls for Doha Progress, at OECD Ministerial

At a press conference following the OECD Ministerial meeting, USTR Robert Zoellick commented that the USG’s intent was to try to gain some momentum for the WTO Doha Development Agenda, in order to increase the likelihood of a successful meeting in Cancun, Mexico in September. He stated that reform of the EU’s massive agricultural domestic subsidies program is crucial for making progress possible in the Doha negotiations. Zoellick said he and EU representatives also worked toward agreement on elements of WTO negotiations for reducing tariffs on non-agricultural goods. He stated that the benefits of a success in Cancun would be very clear, in terms of strengthening the international economy. Zoellick called the Doha Agenda a “once in a generation opportunity,” adding that “the work that we're doing here will really be the major shot at opening the global trading system over 15 - 20 years.” WTO Director-General Supachai Panitchpakdi called on OECD ministers to show leadership by making tough political decisions and showing a willingness to compromise in the Doha Development Agenda negotiations. Speaking in Paris on April 30, he said negotiators in Geneva lack instructions from their ministers in agriculture and other key areas that are consistent with governments’ commitment to a successful outcome. View transcript of Zoellick press conference (no longer available)

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President Asks Senate to Ratify Changes to Customs Convention

President Bush has asked the Senate to ratify changes in the Kyoto Convention (an international customs agreement) that he says would further reduce non-tariff barriers to international trade. In his letter, the President said that U.S. implementation of the amendments would facilitate economic growth, increase foreign investment and stimulate U.S. exports "without compromising standards of customs control." The President said that U.S. accession to the Protocol of Amendment to the Kyoto Convention also would encourage other countries, particularly those less developed, to follow suit. View text of USIS Washington File report (includes text of President’s letter to Senate)

First Report to Congress on Operation of the Andean Trade Preference Act

View the text (no longer available) of USTR’s first report to Congress on the Andean Trade Preference Act, which was prepared with input from all relevant federal agencies and offices, including the Commerce Department. The report shows that the ATPA is continuing to achieve its objective of promoting broad-based economic development, diversifying exports, consolidating democracy, and defeating the scourge of drug trafficking by providing sustainable economic alternatives to drug-crop production in Bolivia, Colombia, Ecuador and Peru. Furthermore, the U.S. is the leading source of imports and the leading export market for each of the ATPA/ATPDEA beneficiary countries. Thus, the ATPA has benefitted the trade of both the Andean region and the U.S.

2003 Special 301 Announcement

On May 1, USTR announced the results of the annual review of foreign countries’ intellectual property protection (IP) under the “Special 301 provisions of the Trade Act of 1974. This year’s “Special 301” annual review of intellectual property protection in 74 countries resulted in the U.S. Government placing 11 trading partners on the Special 301 “Priority Watch List” and 36 on the “Watch List”. The Special 301 Report addresses significant concerns in such trading partners as Brazil, the Bahamas, Mexico, India, Indonesia, Lebanon, Taiwan, Poland, the Philippines, Russia, the EU and members of the Andean Community. Ukraine was maintained as a “Priority Foreign Country” due to its persistent failure to take effective action against optical medial piracy and to implement intellectual property laws that provide adequate and effective protection. No new WTO dispute settlement cases were initiated as a result of the review. In this year’s review, USTR devoted special attention to the growing issue of counterfeiting and piracy, the ongoing campaign to reduce production of unauthorized copies of “optical media” products, proper and timely implementation of the WTO TRIPs Agreement, Internet piracy, and ensuring that government ministries only use authorized software. (links no longer available) View USTR press release View 2003 Special 301 report

WTO: Revised Working Procedures for Appellate Review

On May 1, a revised consolidated version of the Appellate Body's Working Procedures (offsite link) became effective. This revised version modifies the rules governing the participation of third parties in the oral hearings in appeals.

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