October 2003 News

Commerce Secretary Evans Reminds Business Leaders of "Responsibilities"

Speaking October 30 in Tokyo to the American Chamber of Commerce in Japan Luncheon, Commerce Secretary Donald Evans said that business leaders everywhere must remember their responsibilities to the societies they serve. The Secretary said that while job security, job growth and economic growth are in large part dependent on free trade and fair trade, "we've all got to play by the same rules." Fair competition, he said, leads to innovation, higher productivity, economic growth, and a higher standard of living. Ultimately, he said, it "leads to people demanding the kind of freedoms that they are entitled to, that leads to a greater quality of life." Fair trade across the globe, the Secretary said, "does not mean that we have the same labor rates, that we're paying the same wages." Secretary Evans stated, "We need to continue to work very hard on the Doha Round and WTO (World Trade Organization). Those are the kinds of places you can go to create standards, rules, laws, regulations so we're all on the same playing field." View USIS Washington File report (includes transcript of Evans’ remarks)

China Must Open Markets if It Wants U.S. Market Access

During testimony before the House Ways and Means Committee on October 30, Deputy U.S. Trade Representative Josette Shiner said that China must open its markets if it wants continued U.S. market access. The Bush administration, she said, "attaches great importance to improving China's openness to U.S. goods and services as a basis for building a healthy trading relationship. China's large and growing market offers tremendous potential for U.S. manufacturers, service suppliers and agricultural exporters." Within less than two years of entering the WTO, China has become the fourth largest trading partner of the U.S. and the sixth largest market for U.S. exports, Shiner said. Among the steps China must take to live up to its WTO obligations, she said, are: opening its agricultural market and providing full liberalization of trading rights and distribution services; enforcing intellectual property rights; lifting excessive restrictions on financial services firms; and implementing fair and transparent standards and regulations. View text of USIS Washington File report (includes text of Shiner’s testimony)

Commerce Secretary Evans Encouraged by Recent Talks in China

During an October 29 press conference in Beijing, Commerce Secretary Donald Evans said he is "encouraged" by talks he held with top economic and trade officials during his just-completed trip to China. Evans reported that he and his Chinese counterparts focused on several issues, including: IPR protection; eliminating trade barriers and opening markets; the U.S. textile industry; and export controls for the high-tech sector. Evans clarified that it is some members of Congress, not the Bush Administration, that have proposed a 27 percent tariff on imports from China, along with a proposal to eliminate Permanent Normal Trading Relations status with China. He urged China to speed up the pace of its economic and trade reforms. "We need to move quicker down the road of moving into full compliance with WTO [World Trade Organization]," Evans said. View USIS Washington File report (includes transcript of Evans’ press conference)

U.S. Official Outlines Strategy for Prosperity in the Americas

Otto Reich, President Bush’s special envoy for Western Hemisphere initiatives, told the Miami Herald Americas Conference on October 28 that the Bush Administration's strategy for peace and prosperity in the Americas rests on three main pillars: strengthening democratic institutions, expanding free trade in the region, and fighting corruption. The President’s vision for the Americas is the establishment of "a fully democratic hemisphere" that works together "to achieve market-based development, representative democracy, and security that improves the lives of all citizens," Reich said. "The President is committed to advancing trade liberalization globally, regionally, and with individual nations to promote economic development and democratic governance among our trading partners." Reich argued that the U.S. objective of "achieving a genuine, comprehensive free-trade area in the hemisphere" is essential to the region's long-term economic growth. The proposed Free Trade Area of the Americas, which is currently being negotiated, "is the best route to achieving the goal of lifting people out of poverty -- by giving them the dignity of meaningful employment," he said. View USIS Washington File report (includes text of Reich’s remarks)

Hungary: Commerce Assistant Secretary Lash Sees Potential for Further U.S. Investments

According to an MTI-Econews Article, Commerce Assistant Secretary for Market Access and Compliance William Lash III said that, with US$6.5 billion already invested in Hungary, the U.S. sees potential for further investments and trade there. During meetings with senior officials in the Hungarian government, Lash reaffirmed US support for Hungary's upcoming EU-membership. Lash also said that he hoped to assist Hungarian high-tech companies through the creation of e-business partnerships, and through giving Hungarians the opportunity for internships in large US IT firms.

View text of MTI-Econews article

China-U.S. Joint Statement on Textiles

The following statement was released after a U.S. Commerce Department delegation, led by Under Secretary for International Trade Grant Aldonas and Deputy Assistant Secretaries Hank Levine and James Leonard, met with a mixed delegation of Chinese government and 11 textile industry representatives at the Ministry of Commerce (MOFCOM). MOFCOM Vice Minister Liao Xiaoqi led the Chinese delegation: During Secretary of Commerce Donald Evans' trip to China, representatives of the U.S. Commerce Department (DOC), the Chinese Ministry of Commerce (MOFCOM) and the Chinese textile and apparel industry held a frank and constructive discussion regarding bilateral textile and apparel trade. The two sides agreed on the need to increase dialogue and make concrete progress in resolving problems in textile and apparel trade. In accordance with this goal, DOC and MOFCOM agreed to take the following steps: --Establish a bilateral textile consultation mechanism to exchange information and seek the resolution of problems in bilateral textile and apparel trade on a regular basis; --Organize an industry-to-industry exchange to seek opportunities for bilateral cooperation, address problems affecting bilateral trade in textiles and apparel, including the protection of intellectual property, avoiding trade disputes, etc. --Expand commercial cooperation by holding an exhibition to promote the further development of U.S. exports of textile products to china and convening a conference to offer U.S. states and localities the opportunity to introduce investment opportunities in the U.S. to the Chinese textile industry; and --Explore other ways that would encourage bilateral textile trade, and in particular promote the further use of U.S. textiles in China. In addition, MOFCOM will encourage the Chinese textile and apparel associations to enhance their coordination to insure sound trade order in bilateral textile and apparel trade. MOFCOM also affirmed that China will continue its policy of opening and reform and will welcome foreign invested enterprises to participate in the restructuring of the Chinese textile and apparel industry. DOC welcomed these statements.

Commerce Secretary Evans Urges China to Reform Economy Faster

In remarks to the American Chamber of Commerce in Beijing on October 28, Commerce Secretary Donald Evans said China is moving "far too slowly" in its transition to an open, market-based economy. He said that the U.S. is committed to working "toward a free-trading global environment in which economies are free of tariffs and trade barriers -- but it must be fair." Evans stressed that the Administration supports fair and free trade, but warned that "the perception within the United States that the Chinese government either tolerates or condones unfair trading practices or is failing to effectively enforce its trade agreements is undermining support for free trade." He urged the Chinese government to improve protection of intellectual property rights, enable a floating exchange rate for its currency, allow market forces to influence investment decisions in China, and end non-performing loans to state-run companies. View text of Commerce Department press release (no longer available)

China-U.S. Cooperation in Standards and Conformity Assessment

The following statement was released after a U.S. Commerce Department delegation, led by Under Secretary for International Trade Grant Aldonas and Deputy Assistant Secretaries Hank Levine and James Leonard, met with Chinese State Administration for Quality Supervision Inspection and Quarantine (ASQIQ) Vice Minister Li Zhonghai: In conjunction with Secretary of Commerce Donald Evans' visit to China, officials from the U.S. Department of Commerce (DOC) and the General Administration for Quality Supervision, Inspection and Quarantine (ASQIQ) held discussions on ways to enhance bilateral cooperation in the areas of standards and conformity assessment, in support of the further development of bilateral trade. To strengthen bilateral cooperation in these important areas, they have agreed to the following initiatives: -- DOC and AQSIQ will convene a major bilateral workshop on standards and conformity assessment in Washington in the spring of 2004. This workshop represents the continuation of a series of such events that have brought U.S. and Chinese standards and conformity assessment experts together since 1998. -- DOC and AQSIQ have also agreed in principle to support the establishment of a U.S. private sector standards and conformity assessment liaison office in China, whose work will be conducted in accordance with the applicable laws and regulations of china, and with approval of the relevant departments of the Chinese government. This office will allow private U.S. standards and conformity assessment organizations to maintain a permanent presence in Beijing, and will facilitate cooperation and information exchange between these organizations and their Chinese counterparts. This statement was released at the conclusion of Secretary Evans' visit to Beijing.

Commerce Official Says China Piracy Undercuts U.S. Companies

The Cleveland Plain Dealer reported that, during a roundtable discussion with Northeast Ohio manufacturing executives, Assistant Secretary of Commerce for Market Access and Compliance William Lash III stated that rampant piracy of U.S. goods by Chinese producers, even items as humble as playing cards and chewing gum, is undercutting American manufacturers. The executives said their business is slipping off to low-wage, lightly regulated countries such as China and India; one company owner attributed half of the drop in his fortunes to work shifting overseas.

View Cleveland PlainDealer article

Japan: U.S. Annual Reform Recommendations under Regulatory Reform and Competition Initiative

On October 24, the U.S. submitted to Japan its annual reform recommendations under the U.S.-Japan Regulatory Reform and Competition Initiative. The U.S. welcomes Japan’s continuing efforts to achieve meaningful economic reform, and is encouraged by Prime Minister Koizumi’s September 22, 2003 statement that his new cabinet will “continue to put its energies” into regulatory reform, and that he remains committed to his policy of “no growth without reform.” The proposals included in the Summary of Recommendations and the Annex are being provided to the Japanese Government to serve as the basis for discussions over the coming year in the High-level Officials Group and the Working Groups established under the Regulatory Reform Initiative. In this report, the U.S. has made a concerted effort to focus on issues that the Prime Minister and his administration have identified as important areas for reform, including telecommunications, information technologies, medical, energy, and competition policy. View U.S. Annual Reform Recommendations under Regulatory Reform and Competition Initiative

Commerce Secretary Evans Says China Must Move to Market Economy

When he visits China during his eight-day visit to Asia, Secretary of Commerce Don Evans will deliver a strong message: the Bush Administration expects all of America’s trading partners to compete on a level-playing field. The Secretary will also emphasize the Administration’s determination to fight for American manufacturers and Americans workers competing in the global economy. While in China Evans will discuss concerns of U.S. manufacturers that range from: inadequate access to China’s markets; rampant piracy of intellectual property in China; forced transfer of technology from firms launching joint ventures in China; trade barriers; and capital markets that are largely insulated from free-market pressures. “China needs to create an economic system that is more transparent, and one that allows capital to flow freely in response to market forces,” said Evans. “America and the world have a strong interest in seeing China succeed. China’s success begins with fair trade.” Evans will visit Xi’an and Beijing, China, Oct. 26-29, for several meetings with Chinese business and senior government leaders. On Oct. 30 in Tokyo, Japan Evans will give a speech on strengthening U.S.-Japan relations before the American Chamber of Commerce in Japan, and will also meet with senior government officials. View Commerce Department press release (no longer available)

Rice Highlights Successes of "Robust Engagement with Asia"

In a Wall Street Journal column, National Security Advisor Condoleeza Rice highlighted the successes of the Bush Administration’s Asia policy. Dr. Rice stated that the centerpiece of the President's strategy is the U.S.’s “strong forward presence and our commitment to our allies.” Underpinning the Administration’s security initiatives, which are aimed at dismantling terrorist organizations, eliminating the proliferation of weapons of mass destruction and the spread of shoulder-fired missiles, is a commitment to advancing APEC’s prosperity through greater trade, investment and economic cooperation across the region. While working with its APEC partners to reinvigorate the WTO negotiations, the Administration is “…enhancing economic opportunity for American workers, farmers and businesses with bilateral free trade agreements (FTAs) and other trade arrangements.” The U.S. is also “engaging the major economies in a cooperative way to undertake important structural changes -- steadily addressing nonperforming loans in Japan, helping China implement its WTO commitments, and encouraging continuous economic reform.”

View text of Rice column

Bush Hopes for U.S.-Australia Free Trade Pact by December

In remarks during a joint photo opportunity with Australian Prime Minister Howard on October 23, President Bush says that he and Mr. Howard hope to see a free trade agreement between their countries negotiated by December. The President said he and Howard want "to make sure our negotiators push forward with a deal." He added, "Obviously, agriculture is an important issue, intellectual property is an important issue. There's a lot of important issues that we've got to work through… and I think we can.” The President also thanked Australia for its help in Iraq and in the global war on terrorism. View USIS Washington File report (includes transcript of remarks)

U.S., Estonia to Sign Bilateral Investment Treaty Protocol

The U.S. Embassy in Tallinn stated that the U.S. and Estonia will sign a protocol to their Bilateral Investment Treaty (BIT) October 24 in Brussels. The protocol is aimed at assuring compatibility between the obligations of the BIT and the obligations of membership in the European Union. On September 22, the U.S. and the European Commission signed an understanding to preserve U.S. BITs with the Czech Republic, Estonia, Latvia, Lithuania, Poland, the Slovak Republic, Bulgaria and Romania. The BITs help to promote greater economic cooperation and to stimulate the flow of private capital by encouraging a stable framework for investment and clarifying dispute resolution procedures. The U.S. welcomes Estonia's accession to the EU and believes that its EU membership, together with the continuation of its agreement with the U.S., will enhance U.S.-Estonian trade. View USIS Washington File report (includes text of Embassy press release)

Vietnam Reverses Decision to Reorganize IPR Agencies

In early October, the Government of Vietnam (GVN) took an important step toward reversing some aspects of the May 2003 Prime Ministerial Decision ("Decree 54") to reorganize Vietnam's intellectual property agencies, including the transfer of responsibility for trademarks from the National Office of Industrial/Intellectual Property (NOIP) to the Ministry of Trade (MOT). The GVN's apparent decision to reverse its planned reorganization of Vietnam's IPR agencies is a welcome one; the transfer would have simply made Vietnam's administration of IPR more complicated and less efficient. While the GVN has not released its official letter on this decision, the local press, which obtained a copy, reported that the Office of Government (OOG) recommended returning NOIP to its role as the lead agency in charge of IPR. The OOG expects to finalize a draft decree amending Decree 54 by the end of the year. Returning the trademark function to NOIP should expedite processing of the more than 15,000 pending trademark applications that have been accumulating since May.

Commerce Unveils New Interactive Trade Data Website

Commerce Assistant Secretary for Trade Development Linda Conlin announced October 20 that the latest annual U.S. trade statistics can be found on a new, interactive and user-friendly Department of Commerce website. "This new state-of-the-art website allows businesses to easily obtain national and state-level trade statistics custom-tailored to their needs," Conlin said. "It will be especially useful for U.S. businesses that need quick access to U.S. trade figures in order to identify the most promising export prospects for their products." TradeStats Express enables visitors to easily retrieve, visualize, analyze, print and download U.S. trade data including exports, imports and trade balances for the years 1989-2002. Users can specify exactly what they want by employing intuitive, interactive menus. When requests are submitted, results are displayed in detailed maps, graphs and tables. View Commerce Department press release

U.S. Sees "Excellent Results" from Bangkok APEC Meeting

According to a senior Administration official, the U.S. is pleased with the outcomes of this year's APEC Leaders’ meeting. Speaking on background via telephone October 21, the official said: "We had a very successful summit. President Bush came to Bangkok to urge decisive action to promote prosperity and security. There were two major issues on the agenda, trade and counterterrorism. We obtained excellent results on both." The official said the leaders agreed, with U.S. encouragement, to "reenergize" the Doha global trade negotiations by working off the negotiating text developed at the WTO Cancun ministerial. There was also discussion of increased cooperation among APEC members on trade issues, the official said. "This is as positive and constructive a result as we could have had. We hope all parties are seriously ready to move forward with the negotiations on substance." View USIS Washington File report (includes transcript of briefing)

Hong Kong, China to Host Next WTO Ministerial Conference

On October 21, WTO members accepted Hong Kong, China’s invitation to host the Sixth WTO Ministerial Conference, but postponed a decision on the dates for the ministerial. The decision to go to Hong Kong, China was agreed in the General Council. Members also agreed to consider the dates after a clearer picture has emerged on what happens next in the Doha Development Agenda talks. Hong Kong, China thanked members for accepting the invitation and agreed that the decision on the date should be delayed, but reminded members that it will need about a year to prepare for the conference, which, under the WTO Agreement, should be held before the end of 2005.

View WTO news item

USTR Zoellick Visits China To Discuss Fair Trade, WTO Commitments

During his October 19-21 visit, U.S. Trade Representative Robert Zoellick is discussing China’s implementation of its WTO commitments and the important role it plays in the regional and global economy, according to an October 20 USTR press release. Zoellick stated, "Our markets are open to China, and I will emphasize the importance of ensuring fair access for U.S. products to China's markets as well." Agenda items for Zoellick’s meeting with senior government officials included China's reform plans, its WTO implementation schedule, increasing protection for U.S intellectual property, and how increased access for U.S. products and firms contributes to China's development. View USIS Washington File report (includes text of USTR press release)

Powell Says Free Trade Key to Bringing Hope to Developing World

Speaking at the APEC CEO Summit on October 20, Secretary of State Colin Powell said that free trade and open markets are key to improving lives and generating hope throughout the world. Powell called hope a "mere concept and with no meaning" to millions of people who are malnourished, sick and suffering, but said trade has the potential to empower and lift people from poverty. Referring to U.S. efforts to conclude bilateral and multilateral trade agreements, the Secretary stated, "The United States is committed to free and open trade, removing all barriers to trade possible, as the surest way to bring hope to the undeveloped world." The Secretary also told the executives that security issues have been integrated into APEC discussions, not as a "stand-alone item," but as an overall effort consistent with the original purpose of APEC -- to facilitate economic growth, trade and investment in the Asia-Pacific region. View USIS Washington File report (includes text of Powell’s remarks)

Commerce Official Says Future of U.S.-EU Economic Ties Rests on Regulatory Cooperation

In October 16 testimony before the Subcommittee on European Affairs of the Senate Foreign Relations Committee, Commerce Deputy Assistant Secretary for Europe Eric Stewart said the Bush Administration firmly believes that cooperation between the U.S. and the EU on regulatory matters is the "linchpin" of a prosperous future economic relationship. The purpose of many regulations is to protect consumers and the environment, he said, but the broader impact on innovation and competition -- plus the costs of compliance -- must be taken into account. One of the most effective tools for increasing U.S.-EU regulatory cooperation, according to Stewart, is the Transatlantic Business Dialogue (TABD), a framework established in 1995 that enables U.S. and European business leaders to work with senior government officials on regulatory policies. Stewart said the Commerce Department is developing strategies to complement several initiatives: the U.S.-EU Guidelines on Regulatory Cooperation and Transparency (no longer available); the Bush Administration’s Manufacturing Agenda (no longer available); and Commerce Secretary Don Evans' Standards Initiative.(no longer available) "The Bush Administration is committed to continued close cooperation with the business community and EU officials. We believe that open dialogue is one of the most effective ways to avoid disputes, promote cooperation and lower business costs for U.S. and European companies," Stewart said. View text of USIS Washington File report (no longer available)

U.S. Plans To Negotiate Free Trade Pact with Thailand

On October 20, the White House issued a fact sheet on U.S. plans to negotiate a free trade agreement (FTA) with Thailand. According to the fact sheet, such an agreement would help promote U.S. exports to Thailand; preserve the preferential status of U.S. investments under the U.S.-Thailand Treaty of Amity and Economic Relations (AER); and build on the U.S.-Singapore FTA and the Enterprise for ASEAN Initiative (EAI), which "offers the prospect of bilateral free trade agreements between the United States and ASEAN [Association of Southeast Asian Nations] countries that are committed to economic reforms and openness."

View White House fact sheet

President Welcomes APEC Pledges To Improve Transparency, Fight Corruption

In a statement released by the White House, President Bush welcomed APEC Leaders' endorsement of new actions to fight corruption and enhance transparency in the Asia-Pacific region. The leaders recognize the importance of these commitments for attracting foreign investment and promoting economic growth. President Bush believes the Asia-Pacific region should be a leader in global efforts to combat corruption. At U.S. urging, APEC Leaders also agreed to develop specific actions to combat corruption.

View White House fact sheet

USTR Zoellick Sees APEC Advancing WTO Doha Agenda

During a press briefing at the conclusion of the APEC economic ministers’ meeting in Bangkok on October 18, U.S. Trade Representative Robert Zoellick said the event was the first large meeting since the WTO Ministerial in Cancun, and added that the ministers had a very full and productive exchange about the Doha Development Agenda and how to move it forward. Zoellick commented that while "People are coming to a recognition that Cancun was a disappointment, a missed opportunity… the ministers all agree to recommend to their colleagues around the world and also to the leaders that one important step in getting the Doha Agenda back on track was that we agreed to work off the text that was developed in Cancun." He cautioned that there is not universal agreement on all the elements of the text, "but if this is picked up by other countries around the world it gives us a much more solid basis to work from in the discussions that are going on in Geneva leading to a meeting by December 15th." Zoellick said the ministers focused on trade facilitation, transparency and the digital economy. On the bilateral front, Zoellick said he had good discussions with his counterparts about the U.S.-Australian free trade agreement, and possible free trade agreements with Thailand and Peru. View text of USIS Washington File report (includes transcript of Zoellick’s remarks)

WTO: Revised National Enquiry Points for Standards and Technical Regulations

According to WTO obligations, WTO members establish an enquiry point to notify other countries of proposed regulations and to be a point of contact for information about other questions related to standards and technical regulations. The WTO recently updated its national enquiry point list, which provides a list of names, addresses, telex, telephone, telefax numbers and E-mail addresses, where available, and any additional information provided by delegations concerning their operations. View WTO list of revised enquiry points

Commission Says China Unfairly Supports Its Manufacturers

According to the China Economic and Security Review Commission, China is unfairly supporting its manufacturers through its industrial policies and, in violation of both its IMF and WTO obligations, is manipulating its currency for trade advantage. "China's undervalued currency and government investment strategies are having a deleterious effect on the competitiveness of U.S. manufactured goods and contributing to a migration of world manufacturing capacity to China, with a concurrent erosion of the U.S. manufacturing base," the Commission said. The Commission recommended that the Treasury Department make a determination in its foreign country exchange rate report to Congress that China "is engaged in manipulating the rate of exchange between its currency and the U.S. dollar to gain an unfair competitive trade advantage" and immediately enter into formal negotiations with the Chinese Government over this matter. The Commission also urged USTR and the Commerce Department to identify whether any of China's industrial policies are inconsistent with its WTO obligations and "engage with the Chinese Government to mitigate those that are significantly impacting U.S. market access."

View Commission press release

Jordanian Exports to U.S. Soar Despite Middle East Turmoil

According to a USIS Washington File report, Reem Badran, the CEO of the Jordan Investment Board, stated that Jordan’s exports to the U.S. have soared nearly 500 percent since it signed a free trade agreement (FTA) with the U.S. Speaking at a Jordanian investment forum in Washington on October 16, Badran said that for a small country, an FTA is the portal to global markets. The U.S.-Jordanian agreement builds upon a successful foundation established in the creation of Qualifying Industrial Zones (QIZs), which offer duty free access to U.S. markets for products manufactured in cooperation between Jordanian, Palestinian and Israeli entities. The FTA expands upon the success of the QIZs, with an aim to phase out virtually all tariffs on industrial and agricultural goods over a 10-year period. A number of U.S. business leaders praised Jordan's economic policies, saying that they make Jordan an ideal place for doing business in the Middle East.

View USIS Washington File report

President Bush Stresses Fair Trade, Fair Currency Exchange Rates

In an interview with Asian journalists October 14, President Bush stressed the importance of fair trade and fair currency exchange rates and said he would bring up the issues during his upcoming trip to the Asia-Pacific region and the Asia-Pacific Economic Cooperation (APEC) Leaders Meeting in Bangkok. "A competitive world is one that I think is positive, so long as the competition is fair," he said. "We expect the markets to reflect the true value of currency," Bush added, and "the way that currencies ought to be valued is based upon economic activity, fiscal policy, monetary policy of the respective governments, the potential for growth, the potential for long-term viability of the economies." View USIS Washington File report (includes excerpts of President's remarks)

Iraq: Secretary Evans' Visit Highlights Progress in Reconstruction Efforts

On October 15, Commerce Secretary Don Evans met with Baghdad University students, business leaders, local officials, and women entrepreneurs to discuss the economic development made since the liberation of Iraq. Following his meetings, Secretary Evans held a press conference where he highlighted Iraqi successes after decades of corruption and misrule. Evans reminded attendees that a stable, democratic and prosperous Iraq would be an example of freedom's power throughout the Middle East. The Secretary unveiled the 'new Iraqi dinar,' which will create a single currency that will be used throughout all of Iraq and create a reliable monetary system for future foreign investment. Evans' trip coincides with the work of Commerce's Iraq Reconstruction Task Force which assists U.S. companies interested in reconstruction and commercial opportunities in Iraq. View text of Commerce press release (no longer available)

Commerce Releases Textile Working Group Report to Congress

On October 15, the Commerce Department released the latest Textile Working Group report to the Congressional Textile Caucus. The report outlines improving conditions in the U.S. textile industry since the release of the first report in September 2002. In releasing the report, Secretary of Commerce Don Evans stated, “This latest report maintains our commitment to seek a level international playing field in the area of textile manufacturing. We will not accept anything less for the industry and for American workers." Since the publication of its first report to the Congressional Textile Caucus, the Bush Administration continues to place a high priority on measures to improve conditions in the U.S. textile industry. The new report specifies actions taken in the past year to strengthen the U.S. textile industry, which includes U.S. insistence on reciprocal market access as a feature of all trade agreements and publication of a procedural framework for potential safeguard actions against China under their WTO Accession Protocol.

View text of Commerce press release

President Bush, USTR Zoellick to Attend APEC Meetings; U.S. and Singapore Announce Telecom Agreement

President Bush will attend the APEC Leaders' Meeting in Bangkok on October 20-21 during his trip to Asia. According to an October 13 press release, U.S. Trade Representative Robert Zoellick will attend the Asia-Pacific Economic Cooperation meeting in Bangkok, Thailand, October 17-18, which will focus on "expanding regional and global trade liberalization through greater transparency, reduced transaction costs for businesses, and advancing policies that will increase trade in the digital economy." During the conference, Zoellick will hold bilateral meetings with some of the 21 APEC member ministers responsible for trade. USTR also announced that the U.S. and Singapore "agreed to begin mutually recognizing test data and product approvals of telecommunications equipment from each other's economy." View White House press release View USIS Washington File report (includes text of USTR press release)

NAFTA Partners Celebrate Tenth Anniversary of Trade Agreement

In a statement issued during the October 7 meeting of the NAFTA Free Trade Commission in Montreal, U.S. Trade Representative Robert Zoellick, Canadian Minister for International Trade Pierre Pettigrew, and Mexican Secretary of Economy Fernando Canales noted that the North American Free Trade Agreement (NAFTA) -- now approaching its tenth anniversary -- has clearly been a great success for the partners. The three officials noted that since January 1, 1994, when NAFTA entered into force, three-way trade among NAFTA partners has reached $621 billion, more than double pre-NAFTA levels, while foreign direct investment by individual NAFTA partners in the other NAFTA member countries has also more than doubled to reach $299 billion in the year 2000. In addition to evaluating the impact of NAFTA, the trade officials agreed on a number of actions to further stimulate trade and investment between NAFTA partners, which included efforts aimed at enhancing the transparency and efficiency of NAFTA investor-state arbitration. They also agreed to launch a study to determine if harmonization of most-favored-nation tariffs could further promote trade by reducing export-related transaction costs, and announced the creation of the North American Steel Trade Committee, which will foster increased cooperation among the partners' industries on international steel-policy issues. (links no longer available) View text of USIS Washington File report (includes text of joint statement) View NAFTA at 10 brochure View statement on establishment of North American steel trade committee View statement on non-disputing party participation View statement on notices of intent to submit claim to arbitration View US statement on open hearings

Majority of Western Hemisphere Nations Favor Comprehensive FTAA, Says USTR Official

The U.S.’s chief FTAA negotiator, Ross Wilson, stated that most Western Hemisphere nations favor a comprehensive and ambitious Free Trade Area of the Americas (FTAA) over the more narrow approach preferred by Brazil and to a lesser extent Argentina, Paraguay, and Uruguay. The core issue of a week-long FTAA Trade Negotiations Committee (TNC) meeting in Port of Spain, Trinidad & Tobago, was the definition of the scope and comprehensiveness that hemispheric trade officials will strive for in creating the FTAA, Wilson said. While participating in an October 3 conference call, he said that it was clear that most of the hemisphere prefers to continue to pursue the ambitious and comprehensive trade accord envisioned at the Summit of the Americas in 1994 and in subsequent summits and trade ministerial meetings. Wilson is optimistic that FTAA negotiations will be concluded by the January 2005 target deadline, and that the U.S. will remain engaged with all its hemispheric partners, particularly Brazil, to ensure the success of the November FTAA trade ministerial in Miami. To this end, Wilson said that U.S. and Brazilian officials, as co-chairs of the FTAA process, will meet in Washington October 13 and 14 "to see if we can find a way to bridge the gap and find a way to advance the process." View USIS Washington File report (no longer available) View transcript of Wilson press conference call (no longer available)

Interim Environmental Review of Morocco Free Trade Agreement

USTR, on behalf of the Trade Policy Staff Committee (TPSC), is seeking comments on the interim environmental review of the proposed U.S.-Morocco Free Trade Agreement (FTA). The interim environmental review is available at http://www.ustr.gov/environment/environmental.shtml (no longer available). Comments on the draft environmental review are requested no later than October 31, 2003 and earlier if possible. Comments received before October 13, 2003 will be used to inform the next round of negotiations, currently scheduled for October 13-17. Comments received after October 13, 2003 will be used to inform any subsequent rounds of negotiations. For information on making submissions, please consult the Federal Register notice.

Identification of Countries Denying Adequate IPR Protection

USTR is requesting written comments from the public concerning USTR’s requirement to identify countries that deny adequate and effective protection of intellectual property rights or deny fair and equitable market access to U.S. persons who rely on intellectual property protection. This is being done under Section 182 of the Trade Act of 1974, which is commonly referred to as the ``Special 301'' provisions in the Trade Act. In addition, USTR is required to determine which of those countries should be identified as Priority Foreign Countries. On May 1, 2003, USTR announced the results of the 2003 Special 301 review and stated that an Out-of-Cycle Review (OCR) would be conducted in the fall for the Republic of Korea. USTR requests written comments from the public concerning the acts, policies, and practices relevant for this review under Section 182 of the Trade Act. Submissions must be received on or before 12 noon on Monday, October 27, 2003. For information on responding, please consult the Federal Register notice.

APEC Capacity-Building Workshop on Quantification of NTMs and Trade Facilitation

Australia and the U.S., with support from the APEC Trade and Investment Liberalization Fund, are sponsoring a workshop in quantitative methods for assessing non-tariff measures (NTMs) and trade facilitation, to be held in Bangkok October 8-10, 2003. The workshop is designed to build on the momentum achieved by research organizations in the Asia-Pacific region in improving techniques for the quantitative assessment of trade policies other than tariffs. This activity is part of APEC's continuing capacity building efforts in support of trade policymaking in the developing economies of the Asia-Pacific region, including more effective participation in regional and multilateral activities. View APEC notice (no longer available)

U.S. Welcomes Completion of U.N. Anti-Corruption Talks

The U.S. welcomed the completion of two years of talks that have resulted in agreement by 130 countries on a UN document aimed at strengthening international efforts to fight corruption. State Department spokesperson Richard Boucher said October 2 that provisions of the UN Convention Against Corruption would also complement existing international anti-corruption efforts being implemented by the G-8 countries, OECD, OAS, and other international fora. The convention includes provisions requiring governments to criminalize bribing, embezzling and money laundering by their own and foreign officials. Governments would also be required to take measures to prevent corruption and to cooperate with other governments in exchanging evidence involving corruption offenses and in recovering assets illicitly acquired by corrupt officials. The U.S. and other countries participating in the negotiations now will review the document and decide on signature. View text of USIS Washington File report (includes text of Boucher’s statement)

USTR Zoellick Responds to Financial Times over WTO

View the text of USTR Zoellick’s response to a Financial Times (FT) editorial regarding the WTO trade negotiations. Ambassador Zoellick states that the FT’s September 29 editorial ignores the U.S. commitment to the global trade negotiations, even though elsewhere the FT has reported that the U.S. played a critical role in launching the Doha round, making ambitious proposals to advance the negotiations, and offering compromises to promote progress.

Environmental Review of Bahrain Free Trade Agreement

In a Federal Register notice, the Trade Policy Staff Committee (TPSC) is advising that USTR is initiating an environmental review of the proposed United States-Bahrain Free Trade Agreement. The TPSC is requesting written comments from the public on what should be included in the scope of the environmental review, including the potential environmental effects that might flow from the agreement and the potential implications for U.S. environmental laws and regulations, and identification of complementarities between trade and environmental objectives such as the promotion of sustainable development. Public comments should be received no later than December 1, 2003. For information on making submissions, please consult the

Federal Register notice.

China Not a Market Economy Yet, Commerce Official Says

China's transformation from a non-market economy to one that operates fully on market principles is incomplete, says Grant Aldonas, under secretary of Commerce for International Trade. "Although the Chinese often make the case that they are a market economy because they want the benefits that designation would yield under our antidumping laws, the simple fact is that many of the main drivers of the Chinese economy remain in state hands," Aldonas told the Subcommittee on Domestic and International Monetary Policy, Trade and Technology of the House Committee on Financial Services during a hearing October 1. China's entry into the WTO, however, has improved the situation for U.S. manufacturers, who previously lacked access to the Chinese market, Aldonas said. China's establishment of WTO-required laws, however, leaves enforcement as the next major challenge, he said. "On paper, the (WTO) accession agreement represents a considerable success," Aldonas said, noting that the agreement eliminated many of the barriers to the distribution of American goods throughout the Chinese economy. He added, "But, there is still a very, very long way to go…We have considerable challenges in terms of WTO compliance, particularly in areas like the protection of intellectual property that represents the key U.S. competitive edge in many manufacturing industries." View text of USIS Washington File report (includes text of Aldonas testimony)

U.S. Urges Pro-growth, Stability Policies for China, World

During testimony before the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology of the House Committee on Financial Services, Treasury Under Secretary John Taylor stated that U.S. economic policy toward China -- including China's exchange rate regime -- is the same as its overall international economic strategy: Remove barriers and encourage pro-growth, pro-stability policies. He stated, "For nearly ten years now, the Chinese have maintained a fixed exchange rate for their currency, the yuan, relative to the dollar." "The rate has been pegged at about 8.28 yuan/dollar for the entire period. Thus, as the dollar has appreciated or depreciated in value relative to other currencies, such as the Euro, the yuan has appreciated or depreciated by the same amount relative to these other countries." But, with its rapid growth and substantial foreign exchange reserves, China "is now in a position to show leadership on the important global issue of exchange rate flexibility," Taylor said. View text of USIS Washington File report (includes text of Taylor’s testimony)

U.S. Remains Committed to Creating Ambitious FTAA on Schedule

In a press release, USTR said that the U.S. remains committed to achieving an ambitious, comprehensive Free Trade Area of the Americas (FTAA) on schedule and the September 30-October 1 meeting of hemispheric trade officials in Port of Spain, Trinidad and Tobago will provide an opportunity to advance efforts toward this end. USTR stated that the FTAA has been a top U.S. priority and an important part of its strategy to open markets globally, regionally and bilaterally. Officials participating in the FTAA Trade Negotiations Committee (TNC) meeting in Port of Spain will discuss the objectives for the November meeting of trade ministers in Miami and the agenda for completing negotiations by the proposed January 2005 deadline, it added. View text of USIS Washington File report (includes text of USTR press release)

Zoellick Travels to Central America to Discuss CAFTA

U.S. Trade Representative Robert Zoellick will travel to Central America October 1-3, to discuss the ongoing U.S.-Central America Free Trade Agreement (CAFTA) negotiations, according to a September 30 press release issued by USTR. During his trip, Zoellick will meet with the presidents of Costa Rica, El Salvador and Nicaragua in their respective countries, participate in a meeting of CAFTA trade ministers in El Salvador, and meet with private sector and civil society leaders in the region. Zoellick noted the importance of these negotiations, particularly following the collapse of the WTO negotiations in Cancun, Mexico. View text of USIS Washington File report (includes text of USTR press release)