July 2004 News

WTO Reports Some Progress on Global Trade Talks

According to a July 29 WTO press release, parties are making some progress on trade talks under way in Geneva, with the U.S., EU, Brazil, India and Australia reaching agreement on a blueprint for continuing negotiations related to agriculture. WTO Director-General Supachai Panitchpakdi said the agreement among the key five members was a "welcome and important input" into the talks. Top trade officials of the 147-member WTO have been gathered in Geneva since July 27 to hammer out a framework for continuing the talks launched in late 2001 in Doha, Qatar, and scheduled to conclude at the end of 2004. No new timetable has been set to wrap up the Doha Development Round. Agriculture is widely considered to be one of the cornerstones on which an overall WTO agreement will be based.

View WTO press release

Libya Gets Green Light to Negotiate WTO Membership

At the July 27 General Council meeting, WTO members agreed to start talks with Libya on its membership bid, bringing the current number of applicant countries to 25. Following the normal procedure for negotiating membership, the General Council agreed to set up a working party to examine Libya’s application, the first step in the accession process. Libya first applied to become a WTO member in December 2001. As an applicant country, Libya will also be an observer to the WTO during the membership negotiation.

View WTO News Item

USITC Launches Investigation of U.S.-Bahrain Free Trade Agreement

The U.S. International Trade Commission (USITC) is seeking input for a newly initiated investigation into the economywide and selected sectoral effects of a free trade agreement with Bahrain. USITC will assess the agreement’s impact on the U.S. economy as a whole and on specific industry sectors, including the impact on GDP, exports and imports, and aggregate employment opportunities. The ITC is seeking input for this investigation from all interested parties and requests that the information focus on the issues for which the ITC is requested to provide information and advice. The USITC will hold a public hearing in connection with the investigation on August 10, 2004 and welcomes written submissions for the record. For more information, please consult the USITC press release.

USITC Unveils Web-Based Shifts In U.S. Merchandise Trade

Shifts in U.S. Merchandise Trade 2003 , an annual compendium of data and analysis examining changes in trade with key U.S. trade partners, was released July 29 by the U.S. International Trade Commission (USITC). Users will find a comprehensive review of U.S. trade performance in 2003, focusing on changes in U.S. exports, imports, and trade balances of key natural resource, agricultural, and manufacturing industries, as well as changes in U.S. bilateral/multilateral trade with major partners. For example, the ITC reports that although the U.S. trade deficit with China increased by more than with any other country in 2003, trade with China in agricultural products recorded a trade surplus, increasing by $1.1 billion to reach $3.8 billion that year.

View USITC press release

Peru Hosts Talks on U.S.-Andean Region Free Trade Pact

On July 27, the U.S. and the Andean region countries of Peru, Colombia and Ecuador began their third round of negotiations to create a free trade agreement (FTA) in Lima, Peru. Assistant U.S. Trade Representative for the Americas Regina Vargo, who will represent the U.S. at the talks, expected initial market-access offers to be exchanged in Lima and that she expects to hear specific offers from her Andean counterparts. The U.S. also expects to work with Bolivia on including that country into the proposed Agreement. A U.S.-Andean free trade agreement would follow the recently concluded U.S.-Central American/Dominican Republic FTA. However, that agreement has not yet entered into force because implementing legislation must first be approved by both houses of the U.S. Congress and signed by the President.

View USIS Washington File report

USTR Zoellick to Attend Key Meetings in Geneva July 27 – 28 to Advance Doha Negotiations

On the eve of his departure for a key meeting that aims to put the WTO Doha Development Agenda (DDA) trade talks back on track after months of stalling, U.S. Trade Representative Robert B. Zoellick said that the U.S. will agree to a new global free-trade deal only if it provides more market access in agriculture, goods and services. Zoellick stated, "We will not accept a deal to put the round back on track simply for the sake of a deal." The talks were launched in Qatar in October 2001 but fell apart during a September 2003 trade ministers' meeting in Cancun, Mexico. Since early 2004, Zoellick has waged a campaign to break the deadlock over the DDA, traveling more than 32,000 miles and meeting with more than 40 trade officials to discuss how best to move the talks forward. The Doha negotiations are scheduled to conclude by the end of 2004. The WTO General Council meets July 27 to discuss a proposed compromise to pave the way to full-blown negotiations on reducing trade barriers.

View USTR press release

Dominican Republic to Join Central American Nations in Free Trade Agreement With U.S.

On July 23, U.S. Trade Representative Robert B. Zoellick announced that the Dominican Republic will enter into a free trade agreement with the U.S. and five countries of Central America on Thursday, August 5, 2004, in Washington, D.C. Zoellick will sign on behalf of the U.S. and Secretary for Commerce and Industry Sonia Guzman will sign for the Dominican Republic. Trade ministers from Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua will sign on behalf of their nations, resulting in an agreement among the seven countries that will be known as the U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). The new agreement builds on the recently signed U.S. – Central America Free Trade Agreement (CAFTA).

View USTR press release

U.S.-Morocco Free Trade Agreement Passed by Congress

Both houses of Congress have approved U.S.-Morocco Free Trade Agreement (FTA) legislation and sent it to President Bush for his signature. On July 22, the House voted 323-99 to pass legislation implementing the U.S.-Morocco pact, one day after the Senate voted 85-13 to approve implementing legislation and also agreed to accept the House version of the bill without an additional vote. Bush administration officials say the President is eager to sign the Morocco legislation, which puts into effect the United States' first FTA with an African country and its second with an Arab country.

View USTR Zoellick’s statement regarding House passage of Morocco FTA

Zoellick Statement Regarding Senate Passage of U.S.-Morocco Free Trade Agreement

View the text of U.S. Trade Representative Robert B. Zoellick’s statement regarding the Senate’s approval of the U.S.-Morocco Free Trade Agreement.

USITC Publishes The Year In Trade 2003

On July 21, the United States International Trade Commission ( USITC) released “The Year in Trade 2003.” This publication 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. It includes complete listings of antidumping, countervailing duty, safeguard, intellectual property right infringement, and section 301 investigations undertaken by the U.S. government in 2003.

View USITC press release

View The Year in Trade 2003

U.S. Dissatisfied With Japan Over Apple Dispute

On July 19, U.S. Trade Representative Robert B. Zoellick announced that the U.S. asked a WTO panel to review whether Japan has complied with earlier WTO rulings against its restrictions on imported U.S. apples. The U.S. is also seeking authorization to impose trade sanctions against Japan totaling $143.4 million. Zoellick stated, “The revised restrictions are little changed from the original restrictions found to be inconsistent by a WTO panel with Japan’s obligations under the SPS Agreement. We won’t be satisfied until there is a level playing field, and that’s why we are moving to assert our WTO rights.”

View text of press release

View Product Categories for Potential Suspension of Trade Concessions with Japan

U.S.-Morocco FTA: Fact Sheets on Access to Medicines, Textile/Apparel Provisions

For the Morocco FTA, USTR has released fact sheets regarding Access to Medicines and Textile and Apparel Provisions.

View fact sheet on access to medicines

View fact sheet on textiles and apparel provisions

NAFTA—“A Decade of Achievement”

View the text of the NAFTA Free Trade Commission’s Joint Statement, “NAFTA—A Decade of Achievement,” issued July 16, which outlines the overall results of the 10th anniversary meeting.

U.S. and Canada Agree to Assist Poor Countries’ Access to Medicine

At the annual North American Free Trade Agreement (NAFTA) Commission meeting on July 16, the U.S. announced that a Memorandum of Understanding (MOU) with Canada has been agreed to which ensures that NAFTA will not impede their efforts to assist poor countries from importing generic versions of patented drugs from Canada in response to health crises like HIV-AIDS. According to a USTR press release, the MOU is an example of how the U.S. is working within trade agreements such as NAFTA and multilaterally through the WTO to protect intellectual property rights in ways that do not limit the flexibility of poor countries to have access to medicines in their fight against HIV-AIDS and other epidemics.

View USTR press release

View Memorandum of Understanding (MOU)

Trade Advisory Groups Report on U.S.-Bahrain FTA

On July 19, USTR transmitted to the President and the Congress reports from 27 trade advisory committees, comprising more than 750 practitioners representing diverse interests and views, regarding the recently completed U.S.-Bahrain Free Trade Agreement (FTA). The Trade Act of 2002 requires these committees to prepare reports on proposed trade agreements for the Administration and Congress. There was widespread support for the agreement.

View USTR press release and text of reports

Morocco FTA--Potential Economywide and Selected Sectoral Effects

View the text of the U.S. International Trade Commission’s study, “U.S.-Morocco Free Trade Agreement: Potential Economywide and Selected Sectoral Effects.”

Request for Public Comment: Special 301 Out-of-Cycle Review for Israel

View the text of the Federal Register notice soliciting public comment regarding the Out -of-Cycle Review for Israel. USTR requests that the public submit written comments concerning the acts, policies, and practices relevant for this review under Section 182 of the Trade Act by noon on August 6, 2004. For more information regarding submission of comments, please consult the Federal Register notice

Senate Passes U.S. Australia Free Trade Agreement

On July 16, U.S. Trade Representative Robert B. Zoellick issued a statement on the Senate's passage of the U.S.-Australia Free Trade Agreement (FTA) by a vote of 80-16 on July 15.

View Summary of agreement

View more information on U.S.-Australia FTA

U.S. and Mongolia Sign Bilateral Trade and Investment Framework Agreement

View the text of USTR’s press release regarding the U.S.’s and Mongolia’s signing of their Bilateral Trade and Investment Framework Agreement (TIFA) on July 15.

Zoellick Statement on House Approval of U.S.-Australia Free Trade Agreement

Commenting on the House of Representatives' approval of the U.S.-Australia Free Trade Agreement (FTA), U.S. Trade Representative Robert Zoellick commented that "The United States will gain much from this new economic partnership." He added that the United States is "very proud" of the agreement, which "removes barriers to agricultural products, investment, government procurement, and services while increasing protection for intellectual property and freeing electronic commerce."

View USTR press release

Russia: Lash Says Piracy Costs U.S. Economy Billions

According to a MosNews article, U.S. Assistant Secretary of Commerce for Market Access and Compliance William Lash III stated at a Moscow press conference that the damage caused to U.S. producers of intellectual property by Russian pirates amounts to $1 billion, which violates not only the producers’ rights but also the rights of Russian consumers. He said that the “legal” Russian DVD market numbers 30 million items but its capacity amounts to 340-370 million items. Lash stated that Russia and China (with an estimated $1 billion in damages) top the world list of intellectual property rights violators.

View MosNews article

Israel: Lash Confident that IPR Problems Will be Resolved

According to an article in Israel business daily Globes [online], Assistant Secretary of Commerce for Market Access and Compliance William Lash III told Israel Minister of Industry, Trade and Labor Ehud Olmert that he (Lash) “is convinced that the problem of intellectual property rights will be resolved." The article added, however, that “the US will not compromise on drugs, music, DVDs, and software copying with its small Middle Eastern friend.” According to Globes, the main U.S. claim is over ethical drug registration files, including the results of clinical trials, submitted to the Ministry of Health for the registration of drugs in Israel. Globes quoted Lash as stating, “We're demanding protection for five years, including cases in which there is no Israeli patent. We're demanding protection for data and information in drug registration files for both the registration of generic drugs for marketing in Israel and for manufacturing for export."

View text of Globes article

President Bush Signs African Growth and Opportunity Act

On July 13, President Bush signed legislation that reauthorizes the African Growth and Opportunity Act (AGOA) until 2015 and extends the expiration dates for a number of its key provisions. The President praised AGOA as a law that "has been beneficial to the people of the continent of Africa and to the people of the United States of America." Originally enacted four years ago, AGOA gives African nations duty-free access to U.S. markets if they make progress in opening their economies and building free markets. The latest version of the law, known as AGOA III, extends through September 2007 a provision that allows African nations to sell duty-free apparel to the U.S., even if the fabric used in making the apparel is produced in a third nation. Mr. Bush called AGOA an important complement to traditional African aid programs.

View text of President’s remarks

Zoellick Urges Developing Countries to Compromise in WTO Negotiations

During his July 12 remarks at the opening ceremony of the G90 summit in Mauritius, U.S. Trade Representative Robert Zoellick warned developing countries that, unless they chose more flexible positions, the long-stalled WTO negotiations could collapse again. Zoellick stated, “…if we fail again -- because we did fail the last time -- I do not know for sure what will happen to the Doha Development Agenda." He said the U.S. is willing to consider extending special protections from imports to developing countries on a case-by-case basis. Zoellick reminded participants that, because of developing country opposition, only one so-called Singapore issue -- customs facilitation -- remains for negotiation. He said developing countries need also to open their markets to imports of industrial goods and services, asking them to consider the potential benefits to their own exports.

View transcript of Zoellick's remarks

States Reap Benefits of U.S-Australia Free Trade Agreement

According to a U.S. Commerce Department press release, U.S-Australian bilateral trade is projected to rise substantially as a result of the Free Trade Agreement (FTA) the two countries signed in May, 2003. Because of this agreement, trade between the two nations is projected to rise substantially. U.S. merchandise exports to Australia totaled $13.1 billion in 2003, up $1.3 billion from the 1999 level. Moreover, U.S. exports to Australia are growing significantly faster than overall U.S. exports, with more than 30 U.S. states exporting over $100 million in goods to Australia in 2003. Five states (California, Illinois, Michigan, Texas and Washington, respectively) exported more than $500 million, and two (California and and Washington) exported more than $1 billion. View Commerce Department press release (includes links to overall and state-by-state trade data)

Fact Sheet: Access to Medicines

View the USTR fact sheet regarding access to medicines. The U.S. believes that countries, under global trade rules, have and should continue to have the flexibility to have access to medicines in their fight against HIV-AIDS and other epidemics. The U.S.’s Free Trade Agreements will not affect a country’s ability to take measures necessary to protect public health.

USITC Reports Continued Strong Trade Performance By U.S. Service Industries

The U.S. service sector accounted for 76 percent of U.S. private-sector gross domestic product and 83 percent of private-sector employment in 2002, and it continued to exert a positive effect on U.S. trade performance due, in part, to increased services exports, reports the U.S. International Trade Commission (USITC) in its publication, Recent Trends in U.S. Services Trade, 2004 Annual Report. According to the report, the U.S. current account reported a surplus on trade in private services of $74.3 billion in 2002, which represented a slight increase over the 2001 surplus, marking a departure from the 4.3 percent average annual decrease experienced during 1997-2001. Travel and tourism services remained the leading U.S. service exports, accounting for 23.8 percent of U.S. service exports in 2002. The U.S. direct investment position in foreign service industries totaled $1.1 trillion in 2002, reflecting 11.5 percent growth over the previous year, exceeding the 7.3 percent average annual growth rate recorded during 1999-2001.

View USITC press release

U.S. and China Resolve WTO Dispute Over China’s Tax on Semiconductors

The U.S. and China have agreed on a resolution to their WTO dispute over China’s tax refund policy for integrated circuits. The resolution will ensure full market access and national treatment for U.S. integrated circuits in China, the world’s fastest growing semiconductor market and an export market worth over $2 billion to U.S. manufacturers and workers. This agreement resolves the first WTO case filed against China by any WTO Member.Effective immediately, China will not certify any new semiconductor products or manufacturers for eligibility for VAT refunds. China will no longer offer VAT refunds that favor semiconductors designed in China. And, by April 1 of next year, China will stop providing VAT refunds on Chinese-produced semiconductors to current beneficiaries. Under China’s tax policy, U.S. exporters of integrated circuits to China paid up to five times as much tax as local Chinese manufacturers. These policies disadvantaged U.S. manufacturers as well as U.S. firms that design integrated circuits. The U.S. and China will notify the agreement next week to the WTO in Geneva.

View USTR press release

View 'Real Results' fact sheet

Mexico: Proposed Standards (for May 2004)

View recently proposed and enacted Mexican Government standards View Standard

WTO Panel to Consider Mexican Tax Measures on Soft Drinks, Other Beverages

On July 6, 2004, the WTO’s Dispute Settlement Body established a panel to examine Mexico’s tax measures on soft drinks and other beverages in response to the U.S.’s second request for such a panel. According to the U.S., Mexico’s tax measures discriminate against beverages and syrups made with any sweetener other than cane sugar. The US said that although Mexico suggested that it was premature to establish a panel because the industry was considering the matters, the negotiations have been ongoing for nearly a year without any outcome. View WTO news item

U.S. and Oman Sign Trade and Investment Framework Agreement

On July 7, 2004, U.S. Trade Representative Robert B. Zoellick and Omani Minister of Commerce and Industry Maqbool Bin Ali Sultan signed a Trade and Investment Framework Agreement (TIFA), providing a forum for Oman and the U.S. to examine ways to expand bilateral trade and investment. Oman is the final Gulf country to sign a TIFA with the U.S. Zoellick commented that the TIFA “will provide a vehicle for strengthening our trade and investment relationship with Oman.” He added, “A TIFA with Oman, the FTA signing with Morocco, the completion of FTA negotiations with Bahrain, and the other TIFAs we have recently signed, are concrete signs that we are on the path to achieve the President’s initiative of a Middle East Free Trade Area (MEFTA) by 2013.” The TIFA establishes a U.S.-Oman Council on Trade and Investment in which high-level officials from each country will meet to advance trade and investment issues.

View USTR press release

U.S.-Morocco FTA Fosters Economic, Political Stability

During July 7 testimony before the House Ways and Means Committee, Deputy U.S. Trade Representative Peter Algeier said that the recently signed U.S.-Morocco Free Trade Agreement (FTA) will strengthen Morocco's economy and promote social and political development through associated legal reforms. Algeier said that the agreement provides for duty-free trade on 95 percent of traded products upon its implementation. He also said that, in addition to opening markets to increased tariff-free trade in manufactured goods, agricultural products and services, the agreement ensures higher standards of protection for the environment and for labor. In response to questions regarding intellectual property rights, Algeier said that the FTA contains a "comprehensive chapter on intellectual property in that it covers patents, trademarks, copyright issues, and basically brings the Moroccan practice in law up to the sort of standards that we have here in the United States."

View text of Algeier’s testimony

Taiwan Eliminates Alcoholic Beverage Products Ingredient Labeling Requirement

On June 11, 2004, Taiwan's Finance Ministry announced the implementation of a December 2003 amendment to the Tobacco and Alcohol Administration Law eliminating the ingredient-labeling requirement for alcoholic beverage products. Beginning July 1, 2004, alcoholic beverage product labels do not need to include a list of ingredients. The revision was aimed at addressing international, including U.S. government, charges that Taiwan's labeling law violated WTO commitments.

U.S.-Australia FTA Would Benefit Both Economies, President Says

In a message to Congress, President Bush said that implementation of the U.S.-Australia Free Trade Agreement (FTA) would benefit both countries' economies by eliminating almost all tariffs on manufactured goods traded between the U.S. and Australia while protecting labor rights and environmental standards. In his letter, the President stated, "The United States and Australia have worked in close cooperation on these issues in the past and will pursue this strategy and commitment to cooperation in bilateral and global fora in the future." The agreement also "reinforces the importance of creativity and technology" to the two countries' economies, Bush said. According to the President, the FTA includes rules providing for strong protection and enforcement of intellectual property rights, promotes the use of electronic commerce, and provides for increased U.S.-Australian government cooperation on addressing anticompetitive practices, financial services, and telecommunications.

View President's message on Australia FTA

View pharmaceuticals fact sheet

New Commerce Book Offers Guidance on Business Ethics in World Market

According to a Commerce Department press release , business enterprises looking for guidance on how to operate in accordance with modern standards of corporate accountability and ethics now have an up-to-date, comprehensive resource with a newly published guide from the Department, "Business Ethics: A Manual for Managing a Responsible Business Enterprise in Emerging Market Economies." Designed as a resource guide and training tool for enterprises operating in countries that have just recently transitioned to a market economy, "Business Ethics" will also be useful to decision-makers in organizations of any size seeking to design and implement a business ethics program that conforms to global standards. The book, which is published as part of the Department's Good Governance Program, is organized into sections which answer questions regarding what constitutes a responsible business enterprise and how to achieve responsible business conduct. For information regarding how to order the book, please consult the press release

Fact Sheet on Agriculture Provisions of U.S.-Morocco FTA

View the USTR fact sheet on the agriculture provisions of the U.S.-Morocco Free Trade Agreement (FTA). The U.S. and Morocco have agreed to not use agricultural export subsidies in each other’s markets, unless the exporter believes that a third country is subsidizing its exports into the other FTA country’s market. Morocco will provide preferential market access on all agricultural products according to schedules negotiated on a product-specific basis. The agreement establishes preferential TRQs for high quality and standard quality beef, whole birds, leg quarters, durum wheat, non-durum wheat, almonds, and apples.

Considering Designation of Iraq as a Beneficiary Developing Country Under GSP

View the text of the Federal Register notice soliciting public comment with respect to the eligibility of Iraq for the GSP program. Comments are due August 2, 2004 in accordance with the requirements for submissions, explained in the Federal Register notice

USTR Announces Outcome of 2003 Annual Review of the Generalized System of Preferences (GSP) Program

On June 30, the administration announced the outcome of the annual review of the Generalized System of Preferences (GSP) program, a program created in 1974 under which more than 140 beneficiary developing economies export products duty-free to the United States. The Administration reviewed petitions to remove certain countries from the GSP program for not meeting several statutory criteria for GSP eligibility. These criteria include taking steps to afford internationally recognized worker rights, adequate intellectual property protection and not affording preferential treatment to imports of other developed countries that may have an adverse affect on U.S. commerce. View USTR press release View Federal Register notice (pdf) on results of 2003 Annual Product Review, 2002 Annual Country Practices Review, and Certain Previously-Deferred Product and Country Practice Decisions