June 2004 News

Commerce Submits Report to Congress on OECD Antibribery Convention

On June 29, 2004, Commerce Secretary Donald L. Evans submitted the sixth and final annual report to Congress on implementation of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (An tibribery Convention). According to the report, all 35 parties now have legislation in place that criminalizes bribery of foreign public officials by persons within their jurisdiction. “The United States will continue to advocate for rigorous enforcement of parties’ antibribery laws,” said Evans. “We are making strides to end this injustice and will continue to show leadership in the fight against global corruption.” South Korea and Sweden have obtained convictions under their implementing laws and the momentum of new investigations and prosecutions is building among the parties. The U.S. government estimates that between May 1, 2003 and April 30, 2004, the competition for 47 contracts worth $18 billion may have been affected by bribery by foreign firms of foreign officials. The Bush Administration has implemented a robust international transparency and anticorruption agenda, which complements the objectives of the Antibribery Convention. Consistent with Trade Promotion Authority, the Administration is seeking and obtaining binding commitments in trade agreements that promote transparency and address corruption of public officials. View Commerce Department press release View text of 2004 Antibribery Report

Secretary Evans Helps to Strengthen Economic Ties with China, Ireland and Mexico During Jobs Tour

On June 29, Commerce Secretary Donald L. Evans completed his 11-day jobs tour with a visit to Mexico, where he continued to stress the Bush Administration’s commitment to grow American jobs through free and fair trade. In Mexico, Evans attended the Partnership for Prosperity 2004 Entrepreneurial Workshop, held bilateral meetings with President Vicente Fox, Mexican Foreign Relations Secretary Luis Ernesto Derbez and Mexican Secretary of Economy Fernando Canales. “This administration is committed to engaging its trading partners and holding them accountable in order to create new opportunities for American workers and open new markets for American exporters,” said Evans. “Working together we can eliminate obstacles that hinder free trade, help unlock the economic potential of our economies and improve the quality of life for many families around the world.” In China, Evans stressed the importance of China’s compliance with WTO obligations and called on senior Chinese government officials to eliminate trade barriers hindering U.S.-China trade relations. The Secretary called for China to significantly reduce government micromanagement of the economy and introduce a far higher level of transparency before it can achieve a full transition to a market-driven economy. Secretary Evans spent three days in Ireland to participate in the U.S.-EU Summit and the Transatlantic Business Dialogue (TABD) to discuss ways to increase investment and create a barrier-free transatlantic market to help grow American jobs. View Commerce Department press release (no longer available)

Bush, Fox Administrations Work to Encourage Cooperation, Promote Economic Prosperity

On June 28, Commerce Secretary Donald L. Evans met with Mexican Foreign Relations Secretary Luis Ernesto Derbez and Mexican Secretary of Economy Fernando Canales, during the first day of the second Partnership For Prosperity Entrepreneurial Workshops. In the bilateral meetings, Evans emphasized the Bush administration’s commitment to ensure compliance with NAFTA and to identify and resolve obstacles encountered by U.S. businesses trying to access Mexican markets. Evans discussed ways to improve protection of intellectual property rights, regulatory transparency and the elimination of non-tariff trade barriers. In his meetings, Evans also emphasized the need to address these problems now in order to strengthen the trade relationship. He pointed out that delay only offered temporary benefits that would prevent workers and businesses in both countries from realizing the full benefits of an open and transparent trading relationship. The Secretary also highlighted how the U.S. and Mexico have benefitted under NAFTA, citing that NAFTA helped place Mexico on sounder economic footing. Under Secretary of Commerce for International Trade Grant Aldonas also participated in the Workshops. View Commerce press release (no longer available)

Commerce Secretary Analyzes U.S.-China Trade Relations

View the text of Commerce Secretary Donald Evans’ June 28 Wall Street Journal article, in which he stated that China must open its markets and follow WTO rules. In his article, the Secretary declared: “U.S. support for free trade depends on a fair showing from its trading partners. China needs to act on trade barriers because economic distortions compromise long-term potential. Resolving these problems is in the interests of both countries.”

U.S. and EU Outline Strategy for Strengthening Economic Partnership

In their June 26 declaration on strengthening the transatlantic economic partnership, the U.S. and EU asserted that the increasing integration of the U.S. and European economies has benefited all parties, but added that trade must be further liberalized to boost global prosperity, generate sustained economic growth and raise living standards. The statement, issued at the U.S.-EU summit in Shannon, Ireland, affirms both parties' commitment to creating "a multilateral trading system governed by rules," developing "policies producing strong and sustained economic growth," supporting efforts to enhance scientific and commercial cooperation, seeking "cooperative means and best practices" to stimulate growth, and encouraging debate and discussion to enhance the transatlantic economic partnership. The declaration said senior officials from the U.S. and the EU have been charged with assessing bilateral economic relations and exploring methods "to eliminate trade, regulatory, and investment impediments to further economic integration." This senior-level group is tasked with presenting ideas at the next U.S.-EU Summit with the goal of developing "a forward-looking strategy" by early 2005, according to the declaration. On the same date, the White House released two fact sheets addressing transatlantic cooperation.

View U.S.-EU Declaration on Strengthening Economic Partnership

View fact sheet on Expanding Transatlantic Trade

View fact sheet on Strengthening the Transatlantic Economic Partnership

USTR Zoellick Comments on U.S. Senate Passage of AGOA III

In a June 25, 2004 statement, U.S. Trade Representative Robert B. Zoellick hailed the U.S. Senate’s passage of the AGOA Acceleration Act of 2004 (also known as AGOA III) as a measure that "sends a good signal to Africa" about America's commitment to Africa's economic growth and development. Zoellick said "timing was very, very important" in the passage of the AGOA III legislation. Some textile companies were already considering moving out of Africa, he noted, because of fabric provisions in the original African Growth and Opportunity Act that were set to expire had AGOA III not been passed. Speaking of AGOA III, Zoellick said: "This is about, frankly, the jobs, the opportunity and the hope that it creates in Africa. I have seen it so many ways in Africa. It has just given a whole reorientation to people's mindset about what is possible."

View USTR press release (pdf)

View fact sheet on AGOA (pdf)

Commerce Secretary Evans Calls China Trip a Success

On June 24, Commerce Secretary Donald L. Evans wrapped up his four-day trip to China by discussing the progress that had been made in leveling the playing field for American workers and in strengthening the economic relationship between the two countries, but said that work remains. The Secretary noted that he visited China to build on the recent JCCT meetings held in Washington, and to check on the progress made since then. Mr. Evans stated that Premier Wen and the Chinese leadership would like to purchase additional U.S. goods and services. He noted, however, that “American exporters have serious concerns about market access in China. China must continue to remove its barriers to free trade so that there will be more ‘Made in America’ labels in the marketplace.” Secretary Evans and Chinese government officials discussed several issues, including: market-based economy guidelines, intellectual property rights, trade enforcement issues, flexible market driven exchange rates, free trade, and free flow of capital. View Commerce Department press release (no longer available)

China: Secretary Evans Addresses President’s Export Council, American Chamber of Commerce

During his remarks to the American Chamber of Commerce, Commerce Secretary Donald Evans thanked members for their contributions in improving China’s business climate and raising China’s standard of living. He noted that the U.S. and China have been the primary engines global economic growth over the past several years, and that their “ expanded engagement carries benefits for both our peoples and we’re pulling the world back to prosperity.” While China is the U.S.’s fastest growing export market, with two-way trade exceeding $180 billion, “maintaining any relationship requires commitment, cooperation, and candor.” He reiterated that the U.S. rejects economic isolationism, and “…(is) committed to work closely with the Chinese government to ensure that trade takes place freely and on a level playing field.” He noted the progress made since the recent JCCT meeting in several areas, including market access, agriculture and IPR, and added that the Commerce Department will station a U.S. Patent and Trademark Office lawyer in Embassy Beijing who will devote his attention to advancing the U.S.’s IP agenda in China. View Commerce press release (no longer available)

Fact Sheet: Morocco FTA Leads to Progress on Labor Reform

View the USTR fact sheet regarding Morocco’s progress on labor reform , which was released June 23, 2004. The prospect of a free trade agreement (FTA) with the U.S. helped to forge a domestic consensus for labor law reform in Morocco, spurring reform efforts that had been stymied for over two decades. A comprehensive new labor law went into effect on June 8, 2004.

U.S. Requests WTO Panel Against Mexico Over Beverage Taxes

On June 22, 2004, the U.S. requested that the WTO establish a dispute settlement panel regarding Mexico's 20 percent tax on beverages and syrups made with sweeteners other than sugar, according to a USTR press release. The U.S. believes that Mexico's beverage tax violates Mexico's WTO obligations because it discriminates against U.S. products such as high-fructose corn syrup (HFCS), a corn-based sweetener that competes with sugar. According to USTR, only beverages and syrups that use HFCS and other non-cane-sugar sweeteners are subject to Mexico's tax measures, adding that the taxes have sharply restricted U.S. exports of HFCS. View USIS Washington File report (includes text of USTR press release) View Federal Register notice

China: Commerce Secretary Evans Discusses Benefits of Free and Fair Trade

On June 21, Commerce Secretary Donald L. Evans kicked off a four-day swing through China with a visit to the Harbin Institute of Technology, where he told students that free and fair trade will spur China’s economic development, raise living standards, and create jobs in China as well as in other countries. Evans told the students he is visiting China “…to promote commercial partnerships and policies that can strengthen businesses here and at home, and lead to a higher quality of life for all. This will lead to strengthening our economies and growing jobs for American workers.” View text of Commerce press release (no longer available) View text of Evans remarks at Harbin Institute of Technology (no longer available)

Draft Texts of Free Trade Agreement with Bahrain Released

View the draft texts of the U.S.- Bahrain Free Trade Agreement, which were released by USTR on June 21, 2004.

Commerce Secretary Evans to Discuss Free, Fair Trade with China, Ireland, Mexico

On June 21, 2004, Commerce Secretary Donald L. Evans will begin an 11-day visit to China, Ireland and Mexico to discuss bilateral free and fair trade relations, according to a June 17 Department of Commerce press release. In China, Evans will stress the importance of China's compliance with WTO obligations and call for senior Chinese government officials to eliminate trade barriers hindering U.S.-China trade relations. In Ireland, Evans is scheduled to participate in the U.S.-European Union Summit and meet with Ireland's Deputy Prime Minister, Mary Harney. Secretary Evans' visit to Mexico, as part of the Partnership for Prosperity Entrepreneurial Workshop created by Presidents Bush and Fox in September 2001, will include discussions on job creation and ways to promote prosperity in less developed parts of Mexico, according to the press release. View Commerce Department press release (no longer available)

U.S. Wants to Expand Trade, Investment with Afghanistan

In a speech at a U.S. Chamber of Commerce luncheon for Afghanistan's President Hamid Karzai on June 14, Secretary of Commerce Donald Evans said that he was optimistic on moving forward with U.S. trade and investment in Afghanistan. He noted that Afghanistan has implemented new banking and investment laws that welcome foreign businesses. Evans said U.S companies are visiting Afghanistan in record numbers and a U.S. business delegation visiting in March was the largest to visit Afghanistan since the end of the war. He also noted that since May 15,000 business licenses had been issued in Afghanistan. The Secretary stated, " We look forward to working with you President Karzai, and all Afghans, as you build a lasting, stable democracy." View text of Secretary Evans’ speech (no longer available)

U.S. and Morocco Sign Free Trade Agreement

On June 15, 2004, U.S. Trade Representative Robert B. Zoellick and Morocco's Minister-Delegate of Foreign Affairs and Cooperation Taib Fassi-Fihri signed the U.S.-Morocco Free Trade Agreement in Washington. The U.S.-Morocco FTA will support economic and political reforms in Morocco, Zoellick said. He stated, "Step by step, the Administration is working to build bridges of free trade with economic and social reformers in the Middle East. Our plan offers trade and openness as vital tools for leaders striving to build more open, optimistic, and tolerant Islamic societies." Zoellick praised the FTA as way to "embrace reforming states, encourage their transformation and bolster their chances for success even as we open new markets for American goods and services."

View USTR press release

View more information on U.S.-Morocco FTA

President Preparing to Sign U.S.-Bahrain Free Trade Agreement

On June 15, 2004, President Bush notified Congress of his plans to sign the U.S.-Bahrain Free Trade Agreement within three months. In his message, the President said the pact would strengthen bilateral ties with a close ally and advance the goal of establishing a U.S.-Middle East Free Trade Area (MEFTA) by 2013. U.S. and Bahrain officials announced completion of the trade negotiations on May 27. Bahrain is the third Arab country, following Jordan and Morocco, to negotiate a Free Trade Agreement with the U.S.

View President’s message to Congress

“Landmark" U.S.-Australia Free Trade Agreement Hailed

According to a USIS Washington File report, Deputy U.S. Trade Representative Josette Shiner told the Senate Finance Committee June 15 that the U.S.- Australia Free Trade Agreement (FTA) is a "landmark agreement" that will enhance the alliance between the two countries, putting their trade and investment relationship "on the same plane" as their longstanding political and security ties. In her testimony, Shiner said the agreement will eliminate more than 99 percent of the tariff lines covering exports of U.S. manufactured goods to Australia, which she called “the most significant immediate reduction in industrial tariffs ever achieved in a free trade agreement." The agreement also provides for state-of-the-art intellectual property protection and opens up Australia's government procurement market, which is especially significant because Australia is one of the few developed countries that is not a party to the WTO’s Government Procurement Agreement.

View USIS Washington File report

Commerce Secretary Evans Unveils Manufacturing Council

On June 15, Commerce Secretary Donald L. Evans announced the members of the Bush Administration’s new Manufacturing Council. The new body consists of manufacturing leaders from across the industry that will serve as a strong voice for policies to grow manufacturing jobs. The council’s membership reflects diversity of industry, size of industry and geography. The council will work with the Commerce Department to advocate, coordinate and implement policies that will help U.S. manufacturers compete worldwide. Secretary Evans previously appointed Don Wainwright, Chairman/CEO of Wainwright Industries headquartered in St. Louis, Missouri, as Chairman of the Manufacturing Council. Karen Wright, President and owner of Ariel Corporation in Mt. Vernon, Ohio was named as Vice-Chair of the council. View Commerce Department press release (no longer available) View text of Secretary Evans’ speech (no longer available)

U.S. and Panama Conclude Second Round of Trade Talks

The U.S. and Panama concluded the second round of negotiations on a bilateral trade agreement on June 11 in Los Angeles, and announced that the next round of negotiations will begin in Panama the week of July 12, according to a USTR press release. USTR indicated that trade officials from both countries were pleased with their progress in crafting the text of the agreement, and were also pleased with discussions in the individual negotiating groups. View USIS Washington File report (includes text of USTR press release)

Zoellick Says U.S. Supports Mideast Reformers Through Trade

In a June 12 New York Times op-ed article, U.S. Trade Representative Robert Zoellick stated that the U.S. supports political, economic and social reforms in the Middle East by means of free trade agreements (FTAs). Zoellick said moderate Arab states are reclaiming ideas of the Islamic golden age, characterized by scholarly exploration and thriving commerce. He said today's reformist and tolerant vision of Islam includes free parliamentary elections, the sale of state-owned businesses, the encouragement of foreign investment connected to broad based development, and better protection for the rights of workers and women. The U.S. has concluded FTAs with Jordan, Morocco and Bahrain, and has signed trade facilitation framework agreements with eight other Arab countries. View USIS Washington File report (includes text of Zoellick article)

Commerce Department Requests Public Comment on Unfair Trade Task Force

The Commerce Department (USDOC) published a Federal Register notice requesting comments on Commerce’s new Unfair Trade Practices Task Force. The creation of the Task Force was a key recommendation in the "Manufacturing in America, A Comprehensive Strategy to Address the Challenges to U.S. Manufacturers" report (pdf) (no longer available) released by the Department in January 2004. In order to supplement the Task Force's ongoing work, USDOC is asking the public and representatives of the manufacturing sector to identify unfair trade practices that have the potential to harm U.S. companies. The Department also welcomes suggestions on the most effective ways in which the Task Force can assist in addressing the particular unfair trade practices identified. Written comments will be accepted from interested parties through June 28, 2004. For information on submitting comments, please consult the Federal Register notice. View Commerce Department press release

U.S. Urges Implementation of Summits of the Americas Mandates

According to a USIS Washington File report, U.S. National Coordinator for the Summit of the Americas John Maisto stated that the forum represents the common vision of Western Hemisphere leaders, and that the credibility of the vision and Summit process depend on the implementation of the mandates set at the Summits. At a June 7 meeting of the Summit Implementation Review Group in conjunction with the Organization of American States (OAS) General Assembly in Quito, Ecuador, Maisto said the U.S. continues to work to make the Summit goals a reality. He cited the creation of three Centers for Excellence in Teacher Training (CETTs) in Central America, the Andes and the Caribbean as an example of U.S. Summit follow-through. He said the U.S. also remains committed to the goal of creating a Free Trade Area of the Americas (FTAA) set out in the Miami Summit of the Americas in 1994 -- a goal renewed at each subsequent Summit. He pointed out that the U.S. is supporting its commitment to conclude the FTAA by providing $150 million per year in trade capacity-building to the region. View USIS Washington File report (includes text of Maisto’s remarks)

Fact Sheet: US-Middle East Free Trade Area

View the Fact Sheet on the US-Middle East Free Trade Agreement (MEFTA), which was released during the G-8 Summit in Sea Island, Georgia.

G-8 Leaders' Statement on Trade

View the G-8 Leaders’ Statement on Trade, which was released during their summit in Sea Island, Georgia. The leaders stated that they are determined to move quickly by the end of July to complete the frameworks for key issues in the WTO Doha Development Agenda (DDA) “that will put these far-reaching negotiations on track toward a rapid and successful conclusion. We call on all WTO members to work constructively and swiftly so we can meet our shared commitment to the DDA.” On agriculture, the leaders called for securing the framework on comprehensive negotiations on all forms of export competition, domestic support and market access by the end of July. They declared, “Progress on agriculture will help generate progress in other core issues of the DDA, including agreement to launch negotiations on trade facilitation, as well as continuing to liberalize trade in manufactures and services, and strengthening WTO rules.”

WTO Agriculture Negotiations Progressing, USTR's Johnson Says

Members of the WTO are getting closer to reaching a "potentially historic agreement" to cut agricultural export subsidies, says the chief U.S. agriculture negotiator, Ambassador Allen Johnson of USTR. Speaking June 4 to reporters in Washington by telephone from Frankfurt, Germany, Johnson expressed confidence that, through continuing dialogue, negotiators can work out specifics of a framework agreement on farm trade by mid-July. Johnson commented that “there is a good atmosphere, people are working in a business like way in an effort to try and reach a consensus.” He added, “The real issue now is if we can, given the time that we have, pass through a window of opportunity that we currently have in front of us over the next two months. Or will that window be shut and not have a chance to be open again for months, if not years, from now.”

View transcript of Johnson press teleconference call (pdf)

Zoellick to Visit Peru and Ecuador June 7 - 9

Following his participation at the Asia Pacific Economic Cooperation (APEC) Ministerial meeting in Chile, U.S. Trade Representative Robert B. Zoellick will travel to Peru and Ecuador to discuss the recently launched U.S.-Andean free trade negotiation and other bilateral trade and investment-related issues. Zoellick will meet with the Presidents of Peru and Ecuador as well as legislators and opinion leaders. On May 18, 2004 the U.S. launched free trade negotiations with Colombia, Peru and Ecuador with a round of talks in Cartagena, Colombia. The U.S. hopes to include Bolivia at a later stage, and is working with them to increase their readiness.

View transcript of Zoellick-Alvear press conference

APEC: Trade Ministers’ Statements

View the texts of the Chair’s statement regarding the APEC Trade Ministers’ meeting (off site link), as well as the Ministers’ statement of support for reviving the WTO trade negotiations (off site link) (no longer available), which were released during the trade ministers’ June 4-5, 2004 meeting in Pucon, Chile. Chile's Foreign Minister, Ms. Soledad Alvear, who is also Chair of the meeting, said APEC Member Economies will work collectively to progress WTO negotiations.

WTO: ITA Membership Expands with Enlarged EC

On June 4, 2004, the European Communities announced at the meeting of the WTO Information Technology Agreement Committee, that its commitment on zero tariffs for Information Technology Agreement (ITA) products extends to the enlarged EC membership, including Hungary and Malta, which were not previously participants to the ITA. Participation in the ITA rises to 63 with the addition of Hungary and Malta. The agreement, under which participants agree to eliminate tariffs on imports of IT products from other WTO members, cover about 97 per cent of world trade in IT products. On May 1, 2004, the EC said that the 10 new EC member states automatically signed to the EC's ITA commitments, and that that eight of the 10 new members were already ITA participants: Cyprus, the Czech Republic, Estonia, Latvia, Lithuania, Poland, Slovakia and Slovenia. Also during the June 4 meeting, Honduras announced that it is preparing actively its application to join the ITA. It said that its government is convinced that ITA participation would help its development efforts and contribute to poverty reduction.

View WTO news item

State's Derham Stresses Need for U.S.-Brazilian Effort on Trade

Speaking June 3, 2004 at a forum on U.S.-Brazil relations at the Center for Strategic and International Studies, State Department Deputy Assistant Secretary for Western Hemisphere Affairs James Derham said that, despite past disagreements on the issue, the U.S. and Brazil both recognize that the proposed Free Trade Area of the Americas (FTAA) is "too important an effort" to be allowed to fail. Derham expressed optimism that the FTAA will come into force and unite the economies of the Americas into a single free-trade area, but added that it may not "happen exactly as people envisioned" when plans for the FTAA were announced at the 1994 Summit of the Americas in Miami. Derham stated the FTAA is "inevitable" for the Americas, and that the U.S. and Brazil must figure out how to work with their hemispheric partners to make the trade pact a reality. Derham also said the U.S. and Brazil must be two of the leaders if the so-called "Doha" round of world trade liberalization talks is to succeed.

View USIS Washington File report

U.S.-Chile Free Trade Commission Holds First Meeting

On June 3, 2004, U.S. Trade Representative Robert Zoellick and Chilean Foreign Minister Soledad Alvear held the first meeting of the U.S.-Chile Free Trade Commission in Pucon, Chile, according to a USTR press release which explained that the commission will oversee implementation of the recent U.S.- Chile Free Trade Agreement. At their meeting in Chile, Zoellick and Alvear each stressed the importance of the bilateral FTA to their respective nations, noting that the agreement has brought increased exports to each country.

View transcript of Zoellick-Alvear press conference

WTO Dispute Settlement Body Adopts Panel Report on U.S.-Mexico Telecoms Dispute

On June 1, 2004, the WTO Dispute Settlement Body (DSB) adopted the panel report on “Mexico — Measures Affecting Telecommunications Services.” While the U.S. welcomed the panel's analysis, it strongly disagreed with the panel's discussion on the obligations of GATS Article XVI:2 concluding that “a specific provision in Mexico's GATS schedule allowed Mexico to prohibit the supply of cross-border services using leased capacity in Mexico.” The U.S. also informed the DSB of its agreement with Mexico concerning the steps and the reasonable period of time for compliance. Mexico stated that, while strongly concerned with some of the panel's findings and recommendations — especially the interpretation of Mexico's commitments under the GATS — it would not appeal, in the light of the agreement reached with the U.S. on actions to comply with the panel's recommendations. Mexico added that the flaws in some of the panel's reasoning and findings were particularly important in light of the ongoing services negotiations.

View WTO news item

WTO Farm Negotiations Progress Seen as Crucial by USDA's Veneman

Failure to advance WTO agricultural negotiations in the weeks ahead could block much-needed reforms for decades, U.S. Secretary of Agriculture Ann Veneman stated. In June 2 remarks to the International Federation of Agricultural Producers' meeting, Veneman called attention to the crucial stage of the negotiations going on now. Negotiators have said that if participants cannot agree by July on a framework for working out the contentious agriculture issues, then progress on the Doha Development Agenda would stall again. Agriculture negotiators were back tackling those tough issues in Geneva the week ending June 4 and had been planning another week-long session near the end of the month.

View transcript of Veneman’s remarks

Zoellick Will Promote WTO Talks at APEC Trade Meeting

U.S. Trade Representative Robert Zoellick will attend the Asia-Pacific Economic Cooperation (APEC) meetings for trade ministers in Pucon, Chile, on June 4 and 5, according to a June 2 press release (pdf) from his office. Zoellick will discuss ways to liberalize trade and investment with his APEC counterparts; in particular, he will stress the need to move forward with the WTO Doha Development Agenda negotiations. While in Chile, Zoellick will meet with officials from Chile and Brunei to discuss two separate U.S. bilateral initiatives. On June 3, the USTR and Chilean Foreign Minister Soledad Alvear will conduct the first meeting of the U.S.-Chile Free Trade Commission, a requirement under the U.S.-Chile Free Trade Agreement. Zoellick will meet with Brunei Minister of Industry and Primary Resources Abdul Rahman bin Mohamed Taib to discuss trade issues under the U.S.-Brunei Trade and Investment Framework Agreement, part of a U.S. government initiative to promote trade with the countries of the Association of South East Asian Nations (ASEAN).

U.S. and Mexico Reach Agreement to Resolve Telecom Dispute

On June 1, 2004, the U.S. and Mexico reached an agreement to resolve their ongoing WTO dispute over international telecommunications services. The agreement implements recommendations included in the WTO panel report released on April 2, 2004 and formally adopted June 1. As a result of the decision, Mexico will remove the provisions of its law relating to the proportional return system, uniform tariff system, and the requirement that the carrier with the greatest proportion of outgoing traffic to a country negotiate the settlement rate on behalf of all Mexican carriers for that country. Mexico will allow the introduction of resale-based international telecommunications services in Mexico by 2005, in a manner consistent with its law. The U.S. recognizes that Mexico will continue to restrict International Simple Resale (use of leased lines to carry cross-border calls) to prevent the unauthorized carriage of telecommunications traffic. The annual volume of traffic between the two countries is over six billion minutes, representing services worth over $2 billion.

View USTR press release

U.S. and Central Asian Countries Sign Regional Trade and Investment Framework Agreement

On June 1, 2004, U.S. Trade Representative Robert B. Zoellick and representatives from the Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, signed a Trade and Investment Framework Agreement (TIFA) that will provide a forum to address trade issues and will help enhance trade and investment between the U.S. and Central Asia. The TIFA creates a U.S -Central Asia Council on Trade and Investment that will consider a wide range of issues that include, but are not limited to, intellectual property, labor, environmental issues, and enhancing the participation of small- and medium-sized enterprises in trade and investment. The TIFA Council will establish an ongoing dialogue which will help increase commercial and investment opportunities by identifying and working to remove impediments to trade and investment flows between the U.S. and Central Asia.

View USTR press release