August 2004 News

Mexico: Proposed Standards (for June 2004)

View recently proposed and enacted Mexican Government standards View Standard

USTR, USDA Receive Assurances from China on Soybean Shipments

On August 26, USTR and USDA received assurances from China that new Chinese import regulations (Decree 73, released in late June) will not interfere with trade in U.S. soybeans and other commodities. USTR Chief Agriculture Negotiator Allen F. Johnson and USDA Under Secretary for Farm and Foreign Agricultural Services J.B. Penn received the assurances from Beijing during a meeting with Charge d’Affaires (acting Ambassador) Lan Lijun in Washington, who assured the U.S. officials of his government’s strong commitment to maintaining the “win-win” U.S.-China trade in soybeans. He indicated that the purpose of the new regulation was to extend the validity of quarantine inspection permits from three to six months and would not interfere with U.S. exports of soybeans to China. Johnson and Penn also made clear that while the assurances of China’s government are welcome, the U.S. has reiterated a request that China suspend or rescind Decree 73 until China has properly notified a revised measure to the WTO and considers the comments of its trading partners. The acting Ambassador agreed that it was important to have a continuing U.S.-China dialogue on Decree 73. View joint USTR/USDA press release

Seeking Public Comments on Country Eligibility for AGOA Benefits

The African Growth and Opportunity Act Implementation Subcommittee of the Trade Policy Staff Committee (TPSC) is requesting written public comments for the annual review of the eligibility of sub-Saharan countries to receive the benefits of the African Growth and Opportunity Act (AGOA). The Subcommittee will consider these comments in developing recommendations on AGOA country eligibility for the President. Public comments are due at USTR by September 17, 2004. For more information, please consult the Federal Register notice.

USITC Report Concerning Impact of U.S.-CAFTA/Dominican Republic FTA

On August 26, the U.S. International Trade Commission (USITC) released its report assessing the comprehensive bilateral free trade agreement (FTA) that the President has entered into with five Central American countries -- Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, and with the Dominican Republic. The investigation, U.S.-Central American-Dominican Republic Free Trade Agreement: Potential Economywide and Selected Sectoral Effects, was requested by USTR. View USITC news release View USITC report

Mexico: Proposed Standards (for June 2004)

View recently proposed and enacted Mexican Government standards View Standard

Global Growth Steady Despite High Oil Prices, U.S. Says

The global economy has enough momentum to continue growing despite high oil prices, U.S. Treasury Under Secretary for International Affairs John Taylor says. He noted the absence of major financial crises in the world, low global inflation and narrowing credit spreads -- the difference between the yields on corporate bonds and government bonds -- in emerging markets. In August 19 remarks, Taylor said "it certainly would be better if oil prices were lower," but emphasized that the current global economic expansion "has a lot of sustainability to it" even amid rising energy costs.

View complete text

Joint Statement by Panama and the United States on the Fourth Round of US-Panama Free Trade Negotiations

The United States and Panama met in Tampa, Florida the week of August 9th for the fourth round of negotiations to establish a free trade agreement (FTA) between the two countries. Assistant United States Trade Representative for the Americas Regina Vargo led the U.S. delegation of 60 trade experts from 14 agencies. Minister of Trade and Industry, Joaquin Jacome, led the Panamanian delegation of 40 experts. This round was the last negotiating session under the current administration which launched the talks on April 26, 2004.

For additional information

Bush Asserts That Airbus Receives Unfair Subsidies

Speaking in Seattle, Washington, on August 13, President George W. Bush said that airplane manufacturer Airbus continues to receive unfair subsidies from European governments. Bush said that he has directed U.S. Trade Representative Robert Zoellick to pursue options for removing these subsidies that could include, if necessary, bringing a case before the World Trade Organization.

View text of President's remarks

Bush Signs Act to Implement U.S.-Morocco Free Trade Agreement

President Bush signed the U.S.-Morocco Free Trade Agreement Implementation Act August 17, making Morocco the second Arab country, after Jordan, to enjoy such a preferred trade status with the United States. According to a White House press statement, the agreement fits within the administration's goal of establishing a Middle East Free Trade Area (MEFTA) by 2013.

View full White House statement

USTR Request for Public Comments for the WTO on Expansion of the Pharmaceutical Products Receiving Zero Duties List

The Trade Policy Staff Committee (TPSC) is requesting written public comments with respect to the expansion of the list of pharmaceuticals subject to reciprocal duty elimination by certain members of the WTO. Public Comments are due by noon, September 17, 2004.

For a detailed description of information being sought (pdf)

Global Copyright Piracy Problems in China

William Lash III, Assistant Secretary of Commerce for Market Access and Compliance, was quoted in press reports as saying China could face sanctions by the United States and other governments if it fails to stamp out "epidemic levels" of product piracy that deprive foreign firms of potential sales of up to US$50 billion in nearly every product category. While he stated that China's leaders appear committed to enforcing foreign patents and copyrights, they have yet to stop local officials who protect pirates. He added that China is the center of the global product counterfeiting problem and that many copyright piracy cases worldwide can be traced back to this country despite signing commitments as long ago as 1995 to crack down.

View AP article

View VOA article

USTR Comments on Trade Pact Debate in Australia

In a press release, USTR spokesperson, Richard Mills, acknowledged that the U.S. will not intervene in the current debate in Australia over the free trade agreement (FTA) with the U.S. Mills pointed out: "We've made clear that the United States must certify that the implementation language fulfills the obligations under the FTA before the FTA can come into force. We reserve all our rights in this process." View USTR press release (no longer available)

Request for Comments Concerning China’s Compliance With WTO Commitments

The interagency Trade Policy Staff Committee (TPSC) will convene a public hearing and seek public comment to assist USTR in its preparation of its annual report to Congress on China's compliance with the commitments that it made in connection with its WTO accession. Persons wishing to testify orally at the hearing must provide written notification of their intention, as well as a copy of their testimony, by noon, Friday, September 10, 2004. Written comments are due by noon, Wednesday, September 15, 2004; a hearing will be held in Washington, DC, on Thursday, September 23, 2004. For more information, please consult the Federal Register notice.

View Federal Register notice

Dominican Republic Joins Five Central American Countries in Historic FTA with U.S.

On August 5, U.S. Trade Representative Robert B. Zoellick, the Dominican Republic’s Secretary for Industry and Commerce Sonia Guzman, and representatives of five Central American nations signed the U.S. – Dominican Republic – Central America Free Trade Agreement (DR-CAFTA), an historic agreement that creates the second-largest free trade zone in Latin America for U.S. exports. The agreement will eliminate eighty percent of the tariffs immediately, with the remaining tariffs phased out over 10 years. With this agreement, the Dominican Republic joins the Central American Free Trade Agreement signed earlier this year with Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Eighty percent of DR-CAFTA imports already enter the U.S. duty free; the DR-CAFTA levels the playing field by expanding access for U.S. products and services.

View Zoellick statement

Commerce Secretary Evans Praises Signing Of U.S.-Australia Trade Pact

Secretary Donald L. Evans praised the signing of the U.S.-Australia Free Trade Agreement, stating that it will benefit American workers, consumers and manufacturers. The Secretary stated: “The U.S.-Australia Free Trade agreement will boost the bottom lines of American manufacturers. Today's signing means more American jobs because we’ve leveled the playing field in a critical market for U.S. manufacturers. The new free trade agreement is a powerful tool that will help raise the standard of living across America, provide higher paying jobs and help American businesses succeed in the worldwide marketplace.”

Zippo Fights Product Piracy in China

The Associated Press reported that Commerce Assistant Secretary for Market Access and Compliance William Lash III visited Pennsylvania’s Zippo Manufacturing Company on August 2 to discuss the company’s efforts to combat piracy of its signature Zippo lighter in China. According to the article, Zippo has spent nearly $10 million investigating foreign counterfeiters, but with limited success. The majority of the counterfeit lighters are manufactured in southern China, and are exported everywhere from Europe to Latin America, company officials said. Assistant Secretary Lash said that Zippo’s complaints will play a prominent role in the government's case that China needs to do a better job stopping counterfeiters.

View text of Associated Press article

President Bush Signs Legislation to Implement Free Trade Agreement with Australia

On August 3, President Bush signed legislation to implement the U.S.-Australia Free Trade Agreement (FTA). The agreement, which the President called "a milestone in the history of our alliance," will eliminate duties on 99 percent of all U.S.-manufactured exports to Australia as soon as it takes effect. Annual two-way trade in goods and services between the U.S. and Australia totals $28 billion, with Australia ranked as the 10th largest export market for the U.S. Bush said that the agreement, which received strong bipartisan support in the U.S. Congress, is expected to increase U.S. exports of manufactured goods by nearly $2 billion per year, and to boost agricultural exports as well. After ratification by the Australian Parliament, the FTA will take effect January 1, 2005.

View text of President’s remarks

Doha Talks Back on Track as WTO Agrees on Negotiating Framework

According to an August 1 USTR press release, the WTO Doha Development Agenda (DDA) negotiations were moved forward in Geneva with an agreement that puts the WTO on course to open markets for agriculture, goods and services. The agreed framework provides structure and direction to the ongoing trade talks, which are designed to promote global economic growth and development in developed and developing countries. U.S. Trade Representative Robert B. Zoellick stated, “Today’s decision is a crucial step for global trade. After the detour in Cancun, we have put the WTO negotiations back on track. We have laid out a map for the road ahead. Next, we will negotiate the speed limits for how far and how fast we will lower trade barriers.” While noting that much work remains, he termed the framework reached by the participants “a milestone.” View USTR press release

View fact sheet, “Charting a Course Toward Prosperity”

View statement of U.S. Trade Representative Zoellick