September 2003 News

U.S., Russia Reach Poultry/Pork/Beef Export Agreement

In a September 29 press release, USTR Robert Zoellick announced that the U.S. and Russia have agreed to establish a low tariff mechanism that would allow for the export of record high quantities of U.S. meat to Russia. Zoellick praised the negotiations that led to the agreement, particularly in light of the stalling of international agricultural talks earlier in the month during the WTO ministerial meeting in Cancun, Mexico. The agreement also represents "a positive step" in the Russian WTO accession process, he said. View text of USTR press release (no longer available)

Commerce Assistant Secretary Lash Says Japanese Regulations Restrict Foreign Access

After holding what he characterized as “very positive discussions" with Japanese officials on ways to make Japan’s pharmaceuticals and construction sectors more accessible and transparent, Commerce Assistant Secretary for Market Access and Compliance William Lash III stated that regulatory barriers and anticompetitive behavior in these sectors remain obstacles for foreign companies. Lash, visiting Tokyo as part of regular consultations between the two trading partners, said regulatory inefficiencies were glaring in Japan's pharmaceuticals market, worth an estimated US$60 billion. He stated that, while U.S. companies have still managed to capture about 20 percent of Japan's pharmaceutical market, Japan's construction sector remains "very closed" to foreign competition, with U.S. firms receiving just 1 percent of government procurement spending estimated at US$250 billion. One reason he cited was bid-rigging by Japanese companies, a deeply rooted practice known in Japan as "dango."

View text of Associated Press report

Important for U.S. that China Play by Trade Rules, Commerce Official Says

During September 24 remarks to the Congressional-Executive Commission on China (CECC), Commerce Deputy Assistant Secretary for Asia Pacific Policy Henry Levine said that the stakes for the U.S. in seeing that China "plays by the rules" of foreign trade are large, because of the rapidly expanding role of China as a U.S. trading partner. Levine said the Commerce Department has "adopted an aggressive and multi-pronged approach" to ensure that China "honors its World Trade Organization (WTO) commitments and that US companies benefit from these opportunities." He said that Commerce is "expanding our efforts to engage Chinese officials to help make sure they 'get the rules right' as they continue their massive task of restructuring their economic system." Levine stated that Commerce officials "regularly engage Chinese government officials to ensure trade agreement compliance and market access for our products and services," and noted that Commerce Secretary Evans will visit China in October 2003 to do the same. The Secretary will also raise outstanding trade issues during the 15th U.S.-China Joint Commission on Commerce and Trade (JCCT), which the Secretary has offered to host before the end of 2003, Levine added. View USIS Washington File report (includes text of Levine’s remarks)

TPSC Hearing on China’s Compliance with WTO Commitments Rescheduled

The interagency Trade Policy Staff Committee (TPSC) has rescheduled the public hearing that was to be held to assist USTR in its preparation of its annual report to the Congress on China's compliance with the commitments that it made in connection with its accession to the WTO. The hearing has been rescheduled for Friday, October 3, 2003 in the Truman Room at the White House Conference Center, 726 Jackson Place N.W., Washington, D.C. For more information on this hearing, please consult the TPSC notice (no longer available).

U.S. - Russia: Fact Sheets on Commercial Energy Summit, Business Dialogue

On September 27, the White House released several fact sheets relating to President Bush’s summit meeting with Russian President Putin. View the fact sheets on the U.S. Russia Commercial Energy Summit (the second summit was held September 22-23 in St. Petersburg) and the Russian-American Business Dialogue. Commerce Secretary Don Evans and Russian Minister of Economic Development and Trade Gref met with Dialogue leaders and other participants in Moscow on September 24 to discuss the business community’s priorities and to announce the publication of a business ethics manual sponsored by the Dialogue

Annual Review of Country Eligibility for Benefits Under AGOA

The Trade Policy Staff Committee’s (TPSC) African Growth and Opportunity Act (AGOA) Implementation Subcommittee is requesting written public comments for the annual review of the eligibility of sub-Saharan African countries to receive the benefits of AGOA. The Subcommittee will consider these comments in developing recommendations on country eligibility for the President. Comments received related to the child labor criteria may also be considered by the Labor Department in preparing its report on child labor as required under section 412(c) of the Trade and Development Act of 2000. This notice identifies the eligibility criteria that must be considered under AGOA, lists the sub-Saharan African countries that are currently eligible for AGOA, and the sub-Saharan African countries that are currently ineligible for the AGOA. Public comments are due at USTR by noon, Monday, October 20, 2003. For information on making submissions, please consult the Federal Register notice.

China Not Fulfilling All WTO Commitments, USTR Says

China has made progress in fulfilling its commitments as part of its accession to the WTO but it needs to do much more in the areas of intellectual property rights protection, agriculture and transparency, according to Deputy Assistant U.S. Trade Representative Charles Freeman III. In testimony September 24 before the Congressional-Executive Commission on China (CECC), Freeman noted the trade imbalance between the U.S. and China, which exceeded $103 billion last year. "To the extent China unfairly protects its domestic producers to the detriment of competition from [the] United States, the Administration continues to be prepared to assert U.S. interests," he told commission members. View text of USIS Washington File report (includes transcript of Freeman’s statement)

USITC Publishes The Year in Trade 2002

The Year in Trade 2002, published by the U.S. International Trade Commission (USITC), provides a practical review of U.S. international trade laws, a survey of actions under U.S. trade laws, a summary of the operation of the WTO, an overview of U.S. free trade agreements and negotiations, and a review of U.S. bilateral trade relations with major trading partners. The Year in Trade 2002 includes complete listings of antidumping, countervailing duty, safeguard, intellectual property right infringement, and section 301 cases undertaken by the U.S. government in 2002. In addition, the 2002 report covers developments regarding U.S. free trade agreements, as well as bilateral trade issues with major U.S. trading partners. View text of USITC press release View text of The Year in Trade 2002

Commerce Secretary Evans Praises U.S.-Russia Energy Summit

Commerce Secretary Don Evans announced that significant advances had been made during two days of energy discussions between U.S. and Russian corporate and government leaders in forging new commercial partnerships, expanding energy investment, and strengthening global energy security. The Secretary commented that the summit “...signals a new phase of energy dialogue between the United States and Russia.” More than 600 U.S. and Russian energy companies joined Secretary Evans, U.S. Energy Secretary Spencer Abraham, Russian Minister of Economic Development and Trade German Gref and Minister of Energy Igo Yusufov in St. Petersburg at the Energy Summit to discuss expanding partnerships and new opportunities for investments between the oil and gas industries of both countries. Secretary Evans is also leading a business development mission in Russia. The 13 CEOs from small, medium and large U.S. energy and energy-related firms participated in the Energy Summit and will also be meeting with their Russian counterparts in St. Petersburg and Moscow to develop or expand commercial opportunities in Russia. View text of Commerce press release (no longer available)

U.S. Working to Resolve Agricultural Trade Problems with Mexico

Because Mexico is a critically important agricultural trading partner of the U.S., the Bush administration is aggressively working to address trade problems between the two countries, says Ambassador Allen Johnson, USTR’s chief agriculture negotiator. In September 23 testimony before the Senate Finance Committee, Johnson noted that Mexico, as the U.S.’s third-largest export market for agricultural goods, is a critically important trading partner for U.S. farmers and ranchers. At the same time, he indicated that the U.S. buys 83 percent of Mexico's agricultural exports. He said the U.S. has started seeing some improvements in the key areas of dry beans, poultry, pork, sweeteners, rice, beef and apples exports, but more remains to be done. Johnson pledged that the Bush administration will continue working to ensure that the Mexican market remains open despite political pressures from Mexican farmers, and we will defend U.S. interests if Mexico violates its international trade obligations. View text of USIS Washington File report (includes text of Johnson’s testimony)

Mexico: Small, but Important Victory for U.S. Pharmaceutical Producers

On September 19, President Fox signed into law a new regulation that strengthens patent protection for pharmaceutical producers in Mexico. Prior to granting its health and safety license, the Health Ministry will now be obligated to consult the Mexican Institute of Industrial Property (IMPI) to determine if products under examination are already covered by a registered patent. If IMPI determines that a valid patent registration exists already, the Health Ministry is obligated to deny the request for the health and safety license, effectively blocking production of the product in Mexico.

Philippines Creates Permanent Intellectual Property Unit

On September 12, Philippine Customs Commissioner Antonio Bernardo announced and signed the creation of a permanent Intellectual Property Unit (IPU) within the Bureau of Customs (BOC). Creation of this IPU will further strengthen customs border control over imports with goods that are suspected of infringing the intellectual property rights of owners. The IPU will also enable the BOC to centralize border policy development and implementation in order to monitor and interdict possible IPR violations at ports of entry in the Philippines.

Second U.S.-Russia Energy Summit Opens in St. Petersburg

U.S. Energy Secretary Spencer Abraham and Commerce Secretary Don Evans joined Russian Minister of Energy Igor Yusufov and Minister of Economic Development and Trade German Gref in opening the second U.S.-Russia Commercial Energy Summit in St. Petersburg, Russia, September 22. The first summit was held in Houston, Texas, in 2002. The meetings provide a forum where U.S. and Russian energy sector representatives can work together to solve common problems, develop projects of mutual benefit, and create improvements in such areas as electricity reform, energy efficiency and alternative energy sources. Topics to be discussed in St. Petersburg include the development of an oil pipeline to Murmansk and shipments of Russian liquefied natural gas to the U.S.

View text of Energy Department press release

U.S.-Central American Trade Agreement High on Hemispheric Agenda

Assistant Secretary of State for Western Hemisphere Affairs Roger Noriega stated that the creation of the U.S.-Central American Free Trade Agreement (CAFTA) could yield considerable economic and political benefits -- not only for the region, but for the entire Western Hemisphere. In September 16 remarks to the Institute of the Americas, Noriega said the negotiation of CAFTA is one of the biggest items on the hemispheric agenda. He said the ongoing trade negotiations are significant not only because they are addressing sensitive subjects such as labor rights and agriculture rules, but also because the agreement holds great potential for the region. Noriega indicated that the Bush Administration anticipates negotiating the accession by the Dominican Republic to the CAFTA by early 2004, and the White House hopes to submit the complete agreement for congressional approval by mid-2004. View text of USIS Washington File report (includes transcript of Noriega’s remarks)

State's Larson Praises Iraqi Decision To Allow Open Investment

Under Secretary of State for Economic and Business Affairs Alan Larson said the Iraqi Governing Council's decision to have an open investment regime is a very wise decision. During an interview with Abu Dhabi TV, he said that many countries who had previously decided to allow open overseas investment found that openness to trade and foreign investment is a very successful pathway to economic growth and to improving the lives of their citizens. Larson added that the U.S. is not asking for specific donations to Iraq reconstruction from other Gulf and Arab states, but is asking all countries to give what they can afford to contribute towards the $50-75 billion the reconstruction is likely to cost. The U.S. is contributing $20 billion towards the effort, he said. View USIS Washington File report (includes transcript of Larson interview)

Cambodia Contemplates IPR Enforcement

The Royal Government of Cambodia (RGC) marked the end of a six-month grace period for pirated goods with a clear warning to producers and vendors. As part of its WTO accession package, the RGC passed a new IPR law in March 2003 that it now pledges to enforce. Local music and film producers have welcomed the move, while consumers and vendors are worried that enforcement means an end of affordable access to music, film and software. RGC officials say that education will be as much a part of the effort as enforcement early on.

Implications for U.S. Commercial Interests of Accessions to EU

View the text of a Federal Register notice issued by the Trade Policy Staff Committee, which advises that USTR is requesting written submissions from the public concerning the implications for U.S. trade in goods and services of the anticipated May 2004 enlargement of the EU to include Poland, Hungary, Czech Republic, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Cyprus and Malta. USTR and other agencies are currently engaged in an assessment of the potential impact on U.S. goods and services trade of this enlargement and, in particular, of what compensation the EU may owe to the U.S. under WTO rules. Comments from the public in response to this notice will be incorporated into that assessment. Submissions must be received on or before noon, October 16, 2003. For information on making submissions, please consult the Federal Register notice.

U.S. Hopes to Advance Broad FTAA, USTR Official Says

Ross Wilson, USTR’s senior negotiator for the Free Trade Area of the Americas (FTAA) , said September 16 that a broad FTAA is necessary to promote real regional integration, growth, and development. In September 16 remarks to the Heritage Foundation, Wilson outlined the progress made toward the creation of an FTAA since the first Summit of the Americas in 1994, and also shared the U.S. perspective on the future of the negotiations. Despite this progress, Wilson warned that significant challenges remain in trying to complete the FTAA by the target date of January 2005. He noted that the nations of the South American Common Market (Mercosur), led by Brazil, have expressed concerns over the scope and ambition of a proposed FTAA. View USIS Washington File report (includes text of Wilson’s remarks)

Secretary Evans Notes China's Shortcomings on Trade Commitments

In a speech before the Detroit Economic Club in Michigan September 15, Commerce Secretary Don Evans said the Bush administration feels China is falling short in meeting its trade commitments. He also noted that American businesses are "still waiting" for the Chinese government to allow non-bank entities to establish financing arms so that Chinese consumers can purchase automobiles, a condition to which China agreed when it joined the WTO in December 2001. Evans added that the promise of "free access to established distribution systems for American goods," also part of China's WTO agreement, also remains unfulfilled. The Secretary repeated the Bush administration's call for China to move to a system in which its currency, the yuan, is freely set by market forces. View text of USIS Washington File report (includes text of Secretary Evans’ speech)

U.S. Department of Commerce Names Standards Liaison

Commerce Under Secretary Grant Aldonas announced that Ms. Heidi Hijikata has been appointed as Standards Liaison for the International Trade Administration (ITA). Secretary Don Evans announced the creation of this position earlier this year as one of the elements of the Department's Standards Initiative. The ITA Standards Liaison will serve as focal point for standards within ITA and ensure that industry's priorities on standards are promoted through the Commerce’s international policies and programs. Ms Hijikata will work closely with USTR and other U.S. agencies to address these priorities in U.S. trade agreements. She will also work with the National Institute of Standards and Technology’s (NIST) Standards Services Division to strengthen coordination on technical and policy issues affecting industry and its international competitiveness.

View Commerce Department press release

Commerce Secretary Evans Previews Administration’s Manufacturing Report

On September 15, Commerce Secretary Don Evans previewed the Bush Administration’s pro-growth manufacturing report at the Detroit Economic Club by announcing that the Commerce Department will create a new Unfair Trade Practices Team, a new Office of Industry Analysis, a new Assistant Secretary for Trade Promotion, and other initiatives to help grow jobs within the manufacturing sector. Commenting on these steps, the Secretary stated, “Americans are willing to compete, on even terms, with any country in the world but we will not stand for unfair competition.” The Commerce Department expects to submit the full report to the President near the end of the month. View text of Commerce Department press release View Commerce Department website on Administration’s Manufacturing Initiative

WTO: U.S. Trade Representative Zoellick’s Statement on Cancun Ministerial Meeting

View the text of U.S. Trade Representative Robert Zoellick’s statement regarding the outcome of the WTO Ministerial Meeting in Cancun, Mexico.

WTO: Deputy USTR Alllgeier Describes Facilitators' Role in Negotiations

At a September 11 press briefing in Cancun, Deputy U.S. Trade Representative Peter Allgeier stated that the way ahead in the WTO negotiations is in the hands of five facilitators. He said that the facilitators have been meeting with country delegations to sort out positions on issues in five working groups: agriculture, industrial goods, development issues, the so-called Singapore issues, and a group dealing with other issues. The facilitators will hold meetings open to all interested delegations to try to identify the issues requiring the most discussion by the ministers from 148 countries, Allgeier said. To read this story and other news from Cancun, please visit: http://www.ustrade-wto.gov/ (no longer available)

USTR Zoellick Welcomes WTO Accession for Cambodia, Nepal

On September 11, trade ministers approved Cambodia’s and Nepal’s membership agreements to join the WTO. Cambodia and Nepal are set to become the organization’s 147th and 148th members, and are the first least-developed countries to join the WTO through a full working party negotiation. They still have to ratify their agreements and inform the WTO, and 30 days after that they will become WTO members. U.S. Trade Representative Robert Zoellick welcomed the WTO decision to invite Cambodia and Nepal to become members, stating in a press release, "WTO membership will promote economic development, the rule of law, and investment in each country." View USIS Washington File report (includes text of USTR press release)

WTO: U.S. Willing to Adjust Farm Supports If Others Do, Officials Say

At the Cancun WTO Ministerial meeting, USDA Under Secretary J.B. Penn said September 10 that the U.S. is willing to adjust domestic agricultural supports in exchange for reduced supports in other countries and increased market access for U.S. agricultural products, particularly in developed country markets, but also in developing countries. At the same briefing, Deputy U.S. Trade Representative Peter Allgeier, asked about the employment effects of trade reform, said he could not provide precise numbers on the effects on jobs. But he said there is the potential to raise the standard of living of millions of people, particularly in developing countries, and to achieve greater efficiency in all economies. View text of USIS Washington File report (includes text of press briefing)

Morocco Trade Talks Expected to be Completed by Year's End, USTR Says

According to a USTR fact sheet, the U.S. expects to complete negotiations of a U.S.-Morocco Free Trade Agreement by the end of 2003. View text of USIS Washington File report (includes text of fact sheet)

Zoellick Urges WTO Negotiators to Focus on More Market Access, Work from General Council’s Text

U.S. Trade Representative Robert Zoellick said that trade ministers gathered in Cancun, Mexico for WTO negotiations should focus on further opening markets in agriculture, industrial goods and services and on completing the negotiations on schedule. The U.S. seeks "ambitious results" that will open markets, which will be key to both growth and development, Zoellick said during a September 9 press briefing. U.S. Agriculture Secretary Ann Veneman also spoke at the briefing about the importance of progress in world agricultural trade negotiations. Zoellick also stated that ministers should work from the text submitted by the General Council chairman even though all members, including the U.S., dislike parts of it. Zoellick opposed any attempt by countries to submit rival texts, including an agriculture proposal prepared by G-20 developing countries led by India, China and Brazil. He said the chairman's text reflects the wide divisions over agriculture and other issues and does not pretend to be a consensus document. View USIS Washington File report on market access (includes transcript of Zoellick-Veneman press conference) View USIS Washington File report on General Council’s text (no longer available)

Poorer Countries Need Trade Capacity to Share Trade Benefits, Zoellick Says

Building trade capacity in developing countries is a critical part of trade liberalization, USTR Robert Zoellick said. In September 9 remarks to a panel at the WTO ministerial conference in Cancun, Mexico, he said that developed countries must help poor nations to take advantage of trade. Announcing a new U.S. contribution to a WTO trade-related fund , Zoellick said, however, that governments alone cannot do the job and both the private sector and non-governmental organizations (NGOs) need to be involved to make capacity-building effective. View USIS Washington File report (includes text of Zoellick’s remarks)

WTO: U.S. Fact Sheets on Agriculture Reform for Cancun Ministerial

USTR has released several fact sheets regarding agriculture reform for the WTO Cancun Ministerial meeting: Summary of U.S. 2002 proposal for global agricultural trade reform, Differences in U.S., EU, Japan Agricultural Supports, USTR Calls Current World Cotton Trade Policies Distorting, USTR Describes Farm Bill in Context of Other WTO Members' Support Limits

U.S. to Seek Public Input on Environmental Trade Effects, Zoellick Says

U.S. Trade Representative Robert Zoellick has asked for public comment on any agreement that emerges from WTO negotiations. In a September 9 press release issued from Cancun, Mexico, Zoellick asked also for ways to increase public participation. "Trade creates opportunities for enhanced environmental protection," Zoellick said. "We're focused on producing real results." View text of USIS Washington File report (includes text of USTR press release)

U.S. Official Outlines White House Vision for the Americas

President Bush believes that no region is more important to the future of the U.S. than the Americas, and his administration will continue to work with hemispheric partners to nurture democracy and promote prosperity in the region, says Assistant Secretary of State Roger Noriega. In September 8 remarks at the Center for Strategic and International Studies in Washington, Noriega outlined the Bush administration's record in the Americas and shared its vision for the future. Noriega cited the U.S. conclusion of a free-trade agreement with Chile, current trade negotiations with Central American nations, U.S. support for an International Monetary Fund package for Brazil, and engagement in efforts to resolve crises in Venezuela and Haiti as examples of the Bush administration's impressive record of achievement in the hemisphere. Noriega said that trade represents the best opportunity for the countries of the hemisphere to attract the capital they need to create jobs and sustain economic growth. That growth, he pointed out, will support public investments in education and infrastructure. He said the U.S. remains committed to the creation of a comprehensive Free Trade Area of the Americas by the target date of January 1, 2005. View text of USIS Washington File report (includes text of Noriega’s remarks)

WTO: Zoellick, Veneman to Lead U.S. Delegation to Cancun Meeting

U.S. Trade Representative Robert Zoellick and Secretary of Agriculture Ann Veneman will lead the U.S. delegation to the 5th World Trade Organization Ministerial meeting in Cancun, Mexico. The September 10-14 meeting is seen as an important stepping stone to a final global trade liberalization accord that countries will negotiate over the next 15 months. "We are at the midpoint in the Doha negotiations, and so our goal in Cancun is to provide the appropriate frameworks for us to negotiate real and ambitious trade reform," Zoellick said in a press release issued September 5. "We will keep our objectives in the forefront at all times and not accept a framework just for the sake of having a framework," Veneman added. "We will move toward greater fairness in agricultural trade. And we will strive to bring developing countries more fully into the global trading community." View text of USIS Washington File report (includes text of USTR press release)

All Benefit from Freer Trade, Zoellick Says on Eve of Cancun Talks

View the text of an op-ed column by U.S. Trade Representative Robert Zoellick, which was published in the Wall Street Journal on September 8. Zoellick commented, “At the Cancun meeting we will seek to specify the negotiating frameworks for attaining the Doha goals. Given the diversity and number of participants, this is no small challenge.”

Secretary Evans to Lead U.S. Firms on Energy Business Development Mission to Russia

Commerce Secretary Don Evans announced that he will lead representatives of 13 small, medium and large U.S. energy and energy-related firms on a business development mission to St. Petersburg and Moscow, Russia on September 21-25, 2003. This trade mission is the result of a 2002 Presidential Summit between Presidents Bush and Putin, when the two leaders announced a new Energy Dialogue, the goals of which are to increase the global energy supply, ensure energy security, and promote U.S.-Russian cooperation in developing energy resources. In keeping with these goals, Russia will host this year’s U.S.-Russia Commercial Energy Summit in St. Petersburg, Russia -- to which Secretary Evans will lead the Department of Commerce’s Oil & Gas Business Development Mission. View text of Commerce Department press release (no longer available)

Agreement on Agriculture Framework Critical for WTO Success, USTR Zoellick Says

USTR Robert Zoellick stated that an agreement on a framework for agricultural negotiations will be critical for the success of a major WTO conference in Cancun, Mexico. He said that an agricultural agreement would boost chances for progress toward agreement on a framework for negotiations on market access for manufactured goods and for other parts of the Doha Development Agenda at the September 10-14 mid-term WTO ministerial conference. Zoellick said joint proposals on agriculture and manufactured goods submitted by the U.S. and EU set the stage for the Cancun conference by demonstrating that the two giant economies, which are sometimes at odds on trade issues, can cooperate when the stakes are high. But those proposals, he said, must incorporate the views of other countries to provide a structure for further negotiations on specific goals. Zoellick said that a recent WTO agreement on poor countries' access to cheaper generic drugs was another success that is likely to create a positive negotiating climate in Cancun. In general, he said, the U.S. is seeking an ambitious trade agenda, aggressive time frame and priorities that include agriculture, manufactured goods and services.

View USIS Washington File report

Employment Impact of U.S. - Dominican Republic Free Trade Negotiations

In a Federal Register notice , the Trade Policy Staff Committee is giving notice that USTR and the Labor Department of Labor are initiating a review of the impact of the proposed U.S.-Dominican Republic free trade negotiations 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. For information on making submissions, please refer to the Federal Register notice.

Employment Impact of U.S. - Bahrain Free Trade Negotiations

In a Federal Register notice the Trade Policy Staff Committee is giving notice that USTR and the Labor Department are initiating a review of the impact of the proposed U.S.-Dominican Republic free trade negotiations 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. For information on making submissions, please refer to the Federal Register notice.

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

View the text (no longer available) of Secretary of Commerce Don Evans’ statement regarding the President’s signing of the Singapore and Chile Free Trade Agreements on September 3. The Secretary commented , “The Chile and Singapore Free Trade Agreements are a start to building on our economy’s strengths and identifying to the world that America is serious about expanding free trade."

President Signs U.S. Free Trade Agreements with Chile and Singapore

On September 3, President Bush signed the U.S.’s Free Trade Agreements with Chile and Singapore. Prior to signing the agreements, the President stated they will benefit all three countries and are steps toward greater prosperity, democracy and security globally. The President said he fully expects to sign "many more" free trade agreements, citing ongoing U.S. trade negations with Australia, Morocco, five Central American nations, and the Southern African Customs Union, among others. In addition to advancing the U.S.’s bilateral and regional trade agendas, "the greatest gains from world trade will come from completing the World Trade Organization's global negotiations," Mr. Bush predicted. Completing these global trade talks by the 2005 deadline is essential, he said, since "opening global markets is a pathway to economic success for rich and poor nations alike."

View transcript of President’s remarks

Biotechnology Promotes Development, Boosts Trade, Larson Says

In his article “Trade and Development Dimensions of U.S. International Biotechnology Policy,” which appears in the September 2003 issue of the State Department's electronic journal, Economic Perspectives , Under Secretary of State Alan Larson wrote that science-based regulation of agricultural biotechnology contributes to the free trade of safe biotech applications and to the appropriate use of this technology to promote development. He noted that biotechnology -- one of the most promising new technologies of our times -- is too important for the future prosperity of the world to ignore.

Federal Register Notice on 2001 and 2002 GSP Ongoing Country Practice Reviews

In 2001 and 2002, USTR received petitions to review certain practices in certain beneficiary developing countries to determine whether such countries are in compliance with the Generalized System of Preferences (GSP) eligibility criteria. This notice announces the 2001 and 2002 country practice petitions that are accepted for review, and sets forth the schedule for comment and public hearing on these petitions and on other ongoing country practices reviews, for requesting participation in the hearing, and for submitting pre- and post-hearing briefs. Because the GSP program expired on October 1, 2001, and was not reauthorized until August 6, 2002, the interagency Trade Policy Staff Committee (CPSC ) made no announcement of the acceptance of country practice petitions for the 2001 GSP Annual Review, and merged the 2001 petitions into the 2002 GSP Annual Review. The TPSC has decided to accept certain petitions for review, as indicated in Annex I to this notice. Annex I sets out the case number and status of, and subject country and practice addressed in each petition, and updates the status of other, previously initiated, ongoing country practice reviews. If the TPSC decides to accept any other 2001 or 2002 country practice petition for review, it will make an announcement in the Federal Register at a later date. For information on making submissions, please refer to the Federal Register notice. View text of Federal Register notice (includes texts of Annexes I and II)

President Bush Creates New Commerce Assistant Secretary to Aid Manufacturing Industry

On September 1, President Bush announced he will create a new Assistant Secretary for Manufacturing and Services position within the Department of Commerce to help address the challenges and job losses facing American manufacturing. Commenting on Mr. Bush’s announcement, Secretary Evans stated, “President Bush has made economic growth and job creation a top priority of this administration, and he understands that you can’t address those two priorities without taking a serious look at manufacturing.” In March of this year, Secretary Evans outlined an aggressive Administration agenda to cement the role of manufacturing as a driving force in increasing productivity, growing the economy and creating jobs. After the Secretary and other Commerce officials traveled across the U.S. to examine the challenges and opportunities facing American manufacturers, he is expected to issue a report later this month regarding their concerns and make recommendations to the President on how to aid the industry. View text of Commerce Department press release (no longer available)

Treasury Secretary Snow Says U.S. Committed to Growing China Trade Relationship

During a September 3 press roundtable in Beijing, Treasury Secretary John Snow said that the U.S. is committed to a growing, healthy and mutually beneficial trade relationship with China. Snow said he was satisfied with his recent round of talks with his Chinese counterpart and colleagues on economic, financial and trade issues. He added that in order to continue the dialogue, he has extended an open invitation to Vice-Premier Huang Ju and other Chinese officials to come to Washington to continue the work on these important matters. Snow also outlined for the press continuing U.S. concerns about the Chinese economy. He said the establishment of a flexible exchange rate regime for the Chinese yuan would benefit both the U.S. and China, as well as their regional and global trading partners. The enforcement of China's intellectual property laws and the protection of the free flow of capital, Snow said, are also areas of U.S. concern. Snow noted that the U.S. would appoint a Treasury Attaché at the U.S. Embassy in Beijing to further enhance the U.S.-China economic relationship. View USIS Washington File Report (includes transcript of Secretary Snow’s remarks)

U.S. Welcomes EU Decision on Bilateral Investment Treaties

On September 3, the U.S. issued a statement saying it is pleased the European Commission has endorsed a political understanding that preserves U.S. bilateral investment treaties (BITs) with eight countries that are acceding to, or are candidates for accession to, the European Union (EU). "U.S. investment contributes positively to these countries' economic development," the statement said. "Their membership in the EU, together with the continuation of their agreements with the United States, will only serve to reinforce the message that Europe in general, and these countries in particular, welcome foreign investment." The eight countries are the Czech Republic, Estonia, Latvia, Lithuania, Poland, the Slovak Republic, Bulgaria, and Romania. View text of USIS Washington File Report (includes text of U.S. statement)

WTO Members Break Deadlock on Drug Access for Developing Nations

WTO member governments have broken a deadlock and reached an agreement to facilitate access in developing countries to life-saving drugs to treat AIDS, tuberculosis, malaria and other major diseases. The August 31 decision by the WTO General Council will make it easier for poorer countries to import cheaper generic versions of patented medicines if they are unable to manufacture those drugs themselves. U.S. Trade Representative Robert Zoellick said the consensus reached in Geneva marks "a big step forward, removing a major hurdle to a successful [WTO] Ministerial in Cancun and the overall Doha negotiations." The WTO ministerial in Cancun, Mexico, is scheduled for September 10-14. Zoellick stated, "I encourage everyone to continue in the same spirit to open markets for farm products, and goods and services, so that we can truly fulfill the promise and ambitions of Doha and promote global development and growth." Linnet F. Deily, the U.S. Permanent Representative to the WTO, commented, "Today's action demonstrates how the members of the WTO can and do come together to promote the greater good." (links no longer available) View statement by USTR Zoellick View statement by Deputy USTR Linnet Deily

USTR Statement on U.S. WTO Lumber Victory

According to a USTR press release, a WTO panel "has again upheld key aspects of U.S. actions in the ongoing softwood lumber dispute with Canada." USTR spokesman Richard Mills -- speaking on behalf of U.S. Trade Representative Robert Zoellick -- observed that the WTO panel "agreed on the two most important points in the case." Mills noted that the panel "found that the provincial governments' sale to lumber producers of timber from public lands constitutes a 'financial contribution' by the Canadian government," thereby giving rise to a 'specific' subsidy -- "the kind of subsidy that can be subject to countervailing duties," as the U.S. had claimed. Moreover, he said, the panel "once again rejected the Canadian argument that its natural resource subsidies do not fall within the disciplines of the WTO and therefore cannot be subject to countervailing duties under any circumstances." Mills described this finding as "a victory for both the U.S. lumber industry and the environment." View USIS Washington File report (includes text of USTR press release)