March 2004 News

Malaysia Eliminates Local-Content Requirements for Autos

Malaysia has eliminated local-content requirements on autos as required by its commitments under the WTO Agreement on Trade-Related Investment Measures (TRIMs). On March 4, the finance minister gazetted two decrees that amend Schedule C of the Customs Act of 1967, which relates to completely built-up and completely knocked-down vehicles. The amendments delete all items included in Schedule C--a list of automobile parts required to be sourced locally. The decrees were actually signed on February 24 and deemed to come into operation on January 1, 2004.

U.S., Panama to Begin Free-Trade Negotiations in Late April

According to a March 26 USTR press release, the U.S. and Panama announced that they will begin free-trade negotiations in Panama during the week of April 26. "Panama is a key partner in our effort to deepen economic integration throughout the Western Hemisphere. So, we are very pleased to be launching free-trade agreement negotiations with Panama," U.S. Trade Representative Robert Zoellick said. A free-trade agreement between the U.S. and Panama is compatible with another top U.S. goal: establishing the proposed Free Trade Area of the Americas (FTAA), which is currently being negotiated. View USTR press release (no longer available)

USITC International Economic Review Features Articles on AGOA, WTO, and Mexico

The African Growth and Opportunity Act, WTO trade negotiations, and the reactions of Mexico's farmers to U.S. imports are the topics covered in the current issue of the International Economic Review (IER), a publication of the U.S. International Trade Commission's Office of Economics. The IER is produced as part of the ITC's international trade monitoring program. View USITC press release View January/February 2004 issue of International Economic Review

President’s Message to Congress on Dominican Republic Free Trade Agreement

View the text of President Bush’s message to Congress regarding his intent to enter into a free trade agreement (FTA) with the Government of the Dominican Republic. The President stated that, while the agreement will eliminate barriers to trade with the Dominican Republic—the Caribbean Basin’s largest economy—it “will help bring to the Dominican Republic expanded economic freedom and opportunity, and it will provide an opportunity for regional stability, democracy, and economic development…” View President’s message to Congress on Dominican Republic FTA View Notice of Intention to Enter Into a Free Trade Agreement with the Dominican Republic

U.S. Seeks Members for 2004 U.S.-Japan Private Sector/Government Commission

USTR is seeking letters of interest for private sector membership on the U.S. side of the U.S.-Japan Private Sector/Government Commission for 2004. President Bush and Japanese Prime Minister Koizumi launched the Commission in June 2001 as part of the U.S.-Japan Economic Partnership for Growth (Partnership). It is expected the 2004 Commission meeting will be held in mid-2004 on the topic of ``Advancing U.S.-Japan Economic Cooperation.'' In order to receive full consideration, letters of interest must be received by the U.S. Government Secretariat no later than April 27, 2004. For more information, please consult the Federal Register notice

U.S. Official Encouraged by Resumed WTO Agriculture Negotiations

According to a USIS Washington File report, chief U.S. agricultural trade negotiator Allen Johnson said he is somewhat encouraged by resumption of WTO negotiations in agriculture after a seven-month suspension. Johnson stated that developing country participants have moved beyond the rhetoric that characterized WTO negotiations before and during the failed September 2003 ministers' meeting in Cancún, Mexico. Before Cancún, he said, participants were taking completely different approaches on agriculture; now they are all working from the draft text submitted in Cancún as a point of departure. For the U.S. and many, if not most other countries, agriculture trade reform is crucial to completing the WTO Doha Development negotiations. Johnson said participants view this meeting and another one likely to be scheduled soon, possibly in April, as steps to forging by summer a framework for more detailed negotiations, including setting numeric goals for reducing tariffs and subsidies.

View USIS Washington File report

Armitage Says U.S. "Very Supportive" of Ukraine WTO Membership

During his visit to Kiev, Deputy Secretary of State Richard Armitage said that the U.S. is "very supportive" of Ukraine's accession to the WTO. Also, in response to a reporter’s question, Armitage stated the U.S. will send a Commerce Department official to Kiev “in the near future" to discuss the issue of market economy status for Ukraine. View USIS Washington File report (includes transcript of Armitage’s remarks)

President’s Comments on Opening New Markets for America's Small Businesses

View the text of President Bush’s remarks to the United States Hispanic Chamber of Commerce on March 24, in which he noted, among other things, how U.S. exporters benefit from U.S. market-opening measures, which allows them to create new jobs for American workers. The President stated, “When you're selling into markets, it makes it more likely somebody is going to find work.”

Acting U.S. Patent and Trademark Office Director Discusses Efforts to Safeguard IPR

During a March 23 Senate Judiciary Committee hearing which focused on the theft of tangible intellectual property (IP) and its impact on the U.S. and global economies, Acting U.S. Patent and Trademark Office (USPTO) Director Jon Dudas said that optical disk piracy-- in the form of music, business software, videogames, and published materials-- is a chief concern. Worldwide, industry estimates that approximately 40 percent of software programs are pirated. Meanwhile, global trademark counterfeiting totals about $500 billion a year, of which pirated auto parts account for about $12 billion. Dudas noted Department of Commerce efforts to curb IP crime and strengthen IP enforcement around the globe, which is a top priority of Commerce Secretary Evans. He stated that, while USPTO IP enforcement training and assistance programs "…have yielded positive results, measured by decreasing levels of intellectual property piracy and stronger legal protections for intellectual property in many countries where we provided training and technical assistance…much work remains."

View text of Dudas’s remarks to Senate Judiciary Committee

U.S. and Colombia to Begin FTA Negotiations on May 18

Following meetings between President Bush and Colombian President Alvaro Uribe, the U.S. and Colombia announced March 23 that free trade negotiations between the two countries, and possibly other Andean countries, will begin May 18-19. U.S. Trade Representative Robert B. Zoellick joined in the meeting, and afterward met with President Uribe and Jorge Humberto Botero, Minister of Trade, Industry and Tourism, to discuss U.S.-Colombian trade issues, the launching of the FTA negotiations, the ongoing Free Trade Area of the Americas (FTAA), and the WTO Doha negotiations. In recent weeks, Peru has taken steps to resolve outstanding disputes with U.S. investors, and the U.S. is discussing with Ecuador the steps it needs to take to address certain concerns regarding worker rights and investor disputes. Zoellick is hopeful that "…in the coming weeks these countries will take the follow-on steps that will enable us to include them at the negotiating table." The U.S., he said, hopes to include Bolivia at a later stage, and is working with the Bolivian Government to increase its readiness. View USTR press release (no longer available)

Support for U.S.-Central America Free Trade Agreement Widespread

Citing reports from 32 trade advisory committees, USTR said March 22 that support for the recently completed U.S.-Central America Free Trade Agreement (CAFTA) is widespread. In a March 22 press release, U.S. Trade Representative Robert Zoellick stated, "The trade advisory committee reports show that CAFTA is a cutting-edge, modern free-trade agreement that will expand economic freedom and support democracy." The Advisory Committee for Trade Policy and Negotiations, the most senior committee, described CAFTA as "an exceptional agreement with a large trading partner," the USTR press release noted. Zoellick observed that advisory groups have expressed broad support for CAFTA in such areas as services, manufactured goods, and intellectual property rights. A majority of the Trade and Environment Policy Advisory Committee also expressed satisfaction with the agreement, as did all but one of the agricultural advisory committees, Zoellick stated. However, the Labor Advisory Committee urged Congress to reject the agreement because of deficiencies in local labor laws, the USTR press release indicated. (links no longer available View USTR press release (pdf) View USTR Trade Advisory Committee Reports

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

On March 19, U.S. Trade Representative Robert B. Zoellick and Qatar Minister of Economy and Commerce Mohammed bin Ahmed bin Jassim al-Thani signed a Trade and Investment Framework Agreement (TIFA), providing a forum for the U.S. and Qatar to examine ways to expand bilateral trade and investment. This is the ninth TIFA the U.S. has signed with a Middle Eastern country. Zoellick commented, "The President is committed to helping Middle Eastern countries reform and open their societies through his Middle East Free Trade Area (MEFTA) initiative…As they implement these changes, we will deepen our economic ties with them through various avenues such as today's Trade and Investment Framework Agreement." In 2003, the U.S. exported $408 million worth of goods to Qatar, up 200 percent from a decade ago, including machinery, aircraft, vehicles, and optical and medical instruments. The U.S. imported $331 million worth of goods from Qatar in the same year, including mineral fuel and fertilizers. View USTR press release (no longer available)

USITC Begins Assessment of U.S. FTAs with Morocco, Central America/Dominican Republic

The U.S. International Trade Commission (USITC) has instituted investigations to assess the comprehensive bilateral free trade agreements (FTAs) that the President has proposed to establish with Morocco and Central America/Dominican Republic. USITC will hold a public hearing in connection with the investigation into the Central America/Dominican Republic FTA on April 27, 2004, and will hold a public hearing in connection with the investigation into the Morocco FTA on April 29, 2004. For more information, please consult the USITC news releases.

U.S. Files WTO Case Against China Over Discriminatory Taxes

On March 18, U.S. Trade Representative Robert B. Zoellick announced that the U.S. has filed a WTO case regarding China’s discriminatory tax rebate policy for integrated circuits. This policy is inconsistent with the national treatment obligations that China assumed when it joined the WTO in December 2001. Zoellick commented, “We have been pressing these and other concerns with the Chinese. These discussions will continue because we prefer compliance rather than litigation. However, the bottom line is that China is discriminating against key U.S. technology products, it’s wrong, and it’s time to pursue a remedy through the WTO.” The U.S. believes that China’s current VAT rebate policy not only discriminates against U.S. products directly, but also distorts international investment in the integrated circuit sector. View USTR press release (no longer available)

Request for Public Comment on EU Measures Regarding Approval/Marketing of Biotech Products

USTR is providing notice that, on March 4, 2004, a WTO dispute settlement panel was composed concerning measures of the European Communities (EC) affecting the approval and marketing of the products of agricultural biotechnology ("biotech products"). USTR invites written comments from the public concerning the issues raised in this dispute. Although USTR will accept comments received throughout the course of the dispute settlement proceedings, comments should be received on or before April 6, 2004, to be assured of timely consideration by USTR. For more information, please consult the Federal Register notice.

U.S. and Dominican Republic Conclude Trade Agreement

On March 15, the U.S. and the Dominican Republic concluded a free-trade agreement on March 15 that will promote growth and opportunity by integrating the Dominican Republic into the recently concluded U.S.-Central American Free Trade Agreement (CAFTA), according to a USTR press release. U.S. Trade Representative Robert B. Zoellick commented, "This is a proud day for the people of the Dominican Republic and the United States: with close ties and $9 billion in trade already, this free-trade agreement will help both countries to grow stronger together." With the addition of the Dominican Republic to the "cutting-edge, modern" CAFTA agreement reached between the U.S., Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua, the combined total goods trade among all seven countries is approximately $32 billion, Zoellick observed. (links no longer available) View USTR press release View fact sheet on adding Dominican Republic to CAFTA View more information on CAFTA

U.S. Files WTO Case Against Mexico Over Discriminatory Beverage Taxes

On March 16, U.S. Trade Representative Robert B. Zoellick announced that the U.S. filed a case against Mexico in the WTO regarding Mexico's 20 percent sales tax and 20 percent distribution tax on sweetened beverages that do not use cane sugar. The U.S. believes Mexico's beverage tax is inconsistent with Mexico's obligations in the WTO to apply taxes on comparable domestic and imported products in a non-discriminatory manner. Only beverages that use high fructose corn syrup (HFCS) or any other sweetener other than cane sugar are subject to the beverage taxes. The taxes have sharply restricted U.S. exports of HFCS, a cornbased sweetener that competes with sugar in many applications. View USTR press release (no longer available)

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

On March 15, USTR transmitted to the President and the Congress reports from 32 trade advisory committees, comprising more than 750 practitioners representing diverse interests and views, regarding the recently completed free trade agreement (FTA) with Australia. The Trade Act of 2002 requires these committees to prepare reports on proposed trade agreements for the Administration and Congress. Support for the agreement was widespread among nearly all the committees. One committee, comprising labor union representatives, urged Congress to reject the agreement. (links no longer available) View USTR press release View Advisor Reports

USITC Begins Assessment of U.S. FTAs with Australia and Thailand

The U.S. International Trade Commission (USITC) has instituted investigations to assess the comprehensive bilateral free trade agreements (FTAs) that the President has proposed to establish with Australia and Thailand. USITC will hold a public hearing in connection with the investigation into the Australia FTA on March 30, 2004, and will hold a public hearing in connection with the investigation into the Thailand FTA on April 20, 2004. For more information, please consult the USITC news releases.

U.S. Wins Telecommunications Case Against Mexico in WTO

On March 12, U.S. Trade Representative Robert B. Zoellick announced that a WTO panel agreed with the U.S. that Mexico’s current regime for international telecommunications violates Mexico’s WTO obligations. Mexico’s international telecommunications rules require U.S. carriers to connect with Mexican telecommunications providers in order to complete calls from the U.S. to Mexico and grants Mexico’s dominant carrier, Telmex, the exclusive authority to negotiate the rate for connecting calls into Mexico. Zoellick called the decision “…an important victory for American consumers and for the telecommunications industry, and provides an excellent example of how WTO disciplines can provide concrete benefits to American consumers and businesses.” The WTO panel sided with the U.S. on most of the major claims in this dispute. View USTR press release (pdf) (no longer available)

USTR's Ives Says U.S.-Australia FTA Offers Unique Opportunity

In remarks at the March 12 Asia Outlook Conference of the U.S. Chamber of Commerce and the American-Australian Free Trade Agreement Coalition, Assistant U.S. Trade Representative for Asia-Pacific and APEC Affairs Ralph Ives said that the recently concluded U.S.-Australia Free Trade Agreement (FTA) offers a "unique opportunity" to be seized and brought to life by citizens of both countries. Ives highlighted the benefits that the FTA will create through expanded commercial opportunities and economic integration, and welcomed the opportunity to work with the U.S. Congress on implementing legislation. The FTA provides the most significant immediate reduction of industrial tariffs ever negotiated in any U.S. trade agreement, the USTR official said. It also includes sweeping provisions on agricultural trade, services, intellectual property rights protection, investment, and government procurement.

View USIS Washington File report

U.S, UAE Sign Trade and Investment Framework Agreement

On March 15, the U.S. and the United Arab Emirates (UAE) signed a Trade and Investment Framework Agreement (TIFA) that establishes a Joint Council tasked with examining ways for the two countries to expand their bilateral trade and investment relationship. In a USTR press release (no longer available), U.S. Trade Representative Robert B. Zoellick said the agreement will promote U.S. exports to the UAE, as well as assist the UAE with its efforts to liberalize and diversify its economy. The two countries engaged in $4.6 billion worth of trade in 2003, according to the press release. Zoellick said the TIFA with the UAE, as well as the recent Free Trade Agreement (FTA) with Morocco and completion of the second round of FTA negotiations with Bahrain, puts the U.S. "in good standing" to achieve its goal of seeing a Middle East Free Trade Area established by 2013.

Zoellick Discusses China WTO Compliance, Doha Talks, and Market Access in Hill Testimony

U.S. Trade Representative Robert B. Zoellick testified twice on Capitol Hill during the week of March 8. In his March 9 testimony before the Senate Finance Committee, Zoellick stated that prospects for restarting the Doha Development Agenda talks , which stalled last September, will likely depend on WTO members' willingness to focus on a "core agenda" of market access for agriculture, manufactured goods and services. Zoellick said his recent push to restart the WTO talks appears to be making progress. On another issue, Zoellick said the Bush administration in 2004 would focus on shortcomings in China's compliance with its WTO obligations. Areas of concern include intellectual property rights (IPR) enforcement, market access for agriculture and financial services, misuse of standards to impede U.S. exports, and China's promises to grant full and timely trading and distribution rights to U.S. companies, he said. In addition to his remarks regarding China, the U.S. trade representative warned India and Brazil that they need to open their markets in order to sustain support for open markets in the U.S. and elsewhere. In his March 11 testimony (no longer available) before the House Ways and Committee , Zoellick outlined the administration's strategy for promoting freer trade and fielded questions on a range of issues, including President Bush's March 3 decision not to impose safeguard curbs on imports of waterworks fittings from China. View text of Zoellick statement to Senate Finance Committee (no longer available)

Bush Calls Economic Isolationism Recipe for Disaster

President Bush says the U.S. and other countries need to pursue global economic growth by breaking down trade barriers rather than building a "wall" around themselves. Speaking at a women's entrepreneurship forum in Cleveland March 10, the President criticized those who call for raising taxes and isolating the U.S. from the rest of the world as a way of addressing the challenges brought about by globalization and other economic changes. The Bush administration's strategy for dealing with economic challenges includes opening markets, improving conditions for business and investment in the U.S., as well as preparing U.S. workers for successful careers in the new economy. The President said that in order to create jobs in the U.S. and prevent them from going overseas, the government needs to improve its regulatory policy, reduce health care costs, discourage frivolous lawsuits, assure affordable and reliable supplies of energy, and create a stable tax environment.

View text of President's remarks

Experts Warn Against Protectionism as Cure for Job Outsourcing

A panel of experts stated that U.S. job security is better served by expanding domestic training and education opportunities than by employing protectionist measures to prevent companies from transferring work to lower-wage markets. During a March 10 conference on job outsourcing hosted in Washington by the Center for Strategic and International Studies (CSIS), Assistant U.S. Trade Representative Chris Padilla stated, "Isolating America from the world is not the answer." A far better approach, he said, is the Bush administration's policy of promoting job growth by negotiating freer markets for U.S. goods and services, enforcing existing trade agreements, and increasing trade adjustment assistance (TAA) for displaced U.S. workers. Panelists at the CSIS conference generally agreed that protectionism is the least advisable path to securing U.S. job growth. In his remarks, Rep. Adam Smith called on the administration to crack down on countries, such as India and China, that fail to live up to their commitments to open their markets.

View USIS Washington File report

Informal FTAA Negotiations Held in Buenos Aires

Trade officials from a dozen hemispheric nations and organizations met in Buenos Aires, Argentina, March 9-10, for informal consultations on how to move the FTAA talks forward within the framework set at the most recent meeting of hemispheric trade ministers in Miami. A U.S. trade official called the informal talks "very constructive" and indicated that the talks have trade officials "moving in the direction of a successful outcome." According to the official, the informal negotiations included "very specific suggestions" for resolving difficult FTAA issues which will require further consultations. The official noted that the informal FTAA negotiations would reconvene in Buenos Aires in late March. Finally, the official expressed confidence that a number of difficult FTAA issues would be worked out before the TNC meetings resume in Puebla, Mexico, in April, but he declined to specifically identify those issues.

View USIS Washington File report

Fact Sheet: Opening New Markets for America's Workers

View the White House Fact Sheet regarding Administration efforts to open foreign markets to U.S. products and services, help make U.S. companies and workers more competitive, and ensure that U.S. workers have the best skills and education in the world. According to the Fact Sheet, “Free and fair trade will help create more higher-paying jobs for American workers by opening new markets for American products and services, bringing lower prices and more choices to American consumers, and attracting foreign companies to invest and hire in the United States.”

President Declares Intention to Sign U.S.-Morocco Free Trade Agreement

In a March 8 message to the U.S. Congress, President Bush stated his intention to sign the U.S.-Morocco Free Trade Agreement. "Entering into an FTA with Morocco will not only strengthen our bilateral ties with this important ally, it will also advance my goal of a Middle East free trade area (MEFTA) within a decade," Bush said. According to U.S. trade law, the Congress will have a 90-day period to study the text and develop facilitating legislation for the implementation of the agreement. USTR officials indicated that they have been in contact with members of Congress and are working closely with them to ensure timely implementation of the free trade agreement.

View USIS Washington File report

U.S., Dominican Republic Commence Final Round of Trade Talks

According to a USIS Washington File report, the third and final round of negotiations aimed at integrating the Dominican Republic into the U.S.-Central American Free Trade Agreement (CAFTA) began in Washington on March 8, 2004. U.S. and Dominican officials hope to conclude negotiations this week to add the Dominican Republic to the CAFTA accord reached between the U.S. and the Central American nations of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Speaking to the U.S. Chamber of Commerce in Washington on March 8, Assistant U.S. Trade Representative Regina Vargo said that the integration of the Dominican Republic into CAFTA will allow all nations involved to build on already "quite considerable" commercial relationships. As she outlined the course of the current bilateral talks, Vargo said that one recurring theme has been regulatory transparency. She explained that CAFTA has "particularly strong" anti- corruption provisions and is the first trade agreement to criminalize the bribery of government officials in matters relating to international trade and investment.

View USIS Washington File report

U.S., Bahrain Conclude Second Round of Free Trade Negotiations

According to a USIS Washington File report, the chief negotiators in the U.S.-Bahrain free trade discussions announced the successful conclusion of the second round of talks on March 5, citing substantial progress in building upon the first round, which were held in Bahrain in January. In a conference call with Assistant U.S. Trade Representative Catherine Novelli, Bahraini Minister of Finance and National Economy Abdullah Saif said he was confident that the agreement “…will build on our political, economic, cultural and strategic relations.” Commenting on the negotiations, Novelli said, “We aren't encountering…[the] kinds of issues that we have in other places where there are these incredibly contentious situations. That's not to say there aren't issues we have to discuss. ... But our general orientation is very similar on most things." Novelli said that the next step would involve meetings among the technical groups, to be held over the coming weeks, and that the chief negotiators are tentatively looking at May for the next round of discussions. Both Novelli and Saif voiced their expectations that negotiations on the Free Trade Agreement would be concluded in the first half of 2004.

View USIS Washington File report

Request for Public Comment on Egypt’s Imposition of Textile Duties

USTR is providing notice that on December 23, 2003, the U.S. requested consultations with Egypt regarding the import duties that Egypt applies to textile and apparel products. USTR believes the duties Egypt actually applies (on a ``per article'' basis) greatly exceed the ad valorem bound rates that Egypt agreed to apply in the Uruguay Round of WTO negotiations. USTR invites written comments from the public concerning the issues raised in this dispute. Although USTR will accept any comments received during the course of the dispute settlement proceedings, comments should be submitted on or before March 26, 2004, to be assured of timely consideration. For more information, please consult the Federal Register notice.

Zoellick Says Congress Strongly Supports U.S.-Bahrain FTA

U.S. Trade Representative Robert Zoellick March 3 joined Representatives Paul Ryan of Wisconsin and Jim Turner of Texas in launching the Bahrain Congressional Caucus to support the negotiations for a U.S.-Bahrain Free Trade Agreement (FTA), according to a USTR press release (no longer available). The launch of the Bahrain Congressional Caucus (which currently has 24 members) coincided with the start of the second round of FTA negotiations in Washington. Bahrain's Minister of Finance and National Economy Abdulla Hassan Saif and members of the U.S.-Bahrain FTA Business Coalition also attended the ceremony. Negotiators say they hope to complete negotiations for a Free Trade Agreement by the end of 2004. View House press release on Bahrain Congressional Caucus (no longer available)

Request for Public Comment on EU Protection of Trademarks and Geographical Indications

USTR is providing notice that on February 23, 2004, a WTO dispute settlement panel was composed to examine the European Communities Regulations 2081/92, as amended, which governs the protection of geographical indications for agricultural foodstuffs. USTR invites written comments from the public concerning the issues raised in this dispute. Although USTR will accept any comments received during the course of the dispute settlement proceedings, comments should be submitted on or before March 26, 2004, to be assured of timely consideration by USTR. For more information, please consult the Federal Register notice.

USTR Releases Draft Texts of U.S. - Australia Free Trade Agreement

View the final texts (no longer available) of the U.S.-Australia Free Trade Agreement (includes non-conforming measures and side letters).

U.S. and Morocco Conclude Free Trade Agreement

On March 2, the U.S. and Morocco reached agreement on a comprehensive and ground-breaking Free Trade Agreement (FTA) designed to strip away barriers and facilitate trade and investment between both countries. U.S. Trade Representative Robert B. Zoellick and Moroccan Minister-delegate of Foreign Affairs and Cooperation Taib Fassi-Fihri made the joint announcement. The U.S.-Morocco FTA is an integral part of President Bush’s strategy to create a Middle East Free Trade Area by 2013. The Moroccan government has launched a comprehensive economic reform program that is aimed at reducing inflation, developing the tourism sector, eliminating barriers to investment, and liberalizing key services sectors such as telecommunications. The free trade agreement with the U.S., with its emphasis on transparency and the rule of law, will enhance and solidify those reforms. (links no longer available) View USTR press release (pdf) View fact sheet on U.S.-Morocco FTA (pdf) View fact sheet on U.S.-Middle East FTA (pdf) View more information on U.S.-Morocco FTA

Bush Administration Sends Annual Trade Report to Congress

On March 1, the Bush Administration submitted to Congress the 2004 Trade Policy Agenda and the 2003 Annual Report of the President on the Trade Agreements Program. The agenda outlines the Administration’s trade initiatives for the year and reviews its work and accomplishments in 2003. U.S. Trade Representative Robert B. Zoellick wrote in the overview agenda, “The Bush Administration will continue to move forward in 2004 to tear down barriers, cut import taxes and red tape, work for a level playing field, reduce poverty through growth, and build new markets that will support higher-paying U.S. jobs.” He added, “While working to further open markets and level the playing field for U.S. exports of goods and services, the Administration will also continue to focus on monitoring and enforcing existing U.S. trade agreements and trade laws, building the capacity of developing countries to participate in the global economy, and making the case for free trade to the American public.” (links no longer available) View USTR press release View text of report

U.S. Grants Tariff Cuts to Algeria, Ends Benefits for 10 Other Nations

The U.S. is granting preferential tariff treatment to Algeria and withdrawing it from 10 countries as a result of their changing political and economic status. In a March 1 proclamation , President Bush designated Algeria as a developing country whose specified products are entitled to enter the U.S. tariff-free under the Generalized System of Preferences (GSP), a system designated to promote economic growth in the developing world. The Trade Act of 2002 reauthorized the U.S. GSP program until the end of 2006. The proclamation also ends tariff benefits for the seven East European countries that on May 1 are scheduled to become new members of the European Union (the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, and Slovakia) as well as Antigua and Barbuda, Bahrain, and Barbados, which have become "high income" nations as defined by the International Bank for Reconstruction and Development.

View President’s message to Congress on GSP

U.S. and EU Sign Mutual Recognition Agreement on Marine Equipment

On February 27, U.S. Trade Representative Robert B. Zoellick, EU Trade Commissioner Pascal Lamy and Irish Ambassador Noel Fahey signed a mutual recognition agreement (MRA) on marine equipment between the U.S. and the European Community (EC). Current U.S.-EU trade in the initial products covered in the agreement amounts to approximately $150-200 million annually; the agreement contemplates expanding the product scope within the marine equipment sector, which is over $1 billion in annual two-way trade. Zoellick commented, "This agreement saves U.S. manufacturers of marine equipment the time and expense of redundant product testing for the EU market, and also promotes our efforts to improve the quality of international marine safety regulations." Under the terms of the Marine Equipment MRA, designated products which comply with U.S. requirements will be accepted for sale in the EU without any additional testing. The initial MRA product scope includes 43 products in three main categories: life saving equipment (e.g., distress signals, rigid life rafts); fire protection equipment (e.g., deck coverings, flame retardant materials); and navigational equipment (e.g., GPS equipment, echo-sounding equipment). View USTR press release View text of agreement

GSP: Request for Public Comment on Import Statistics Relating to Competitive Need Limitations

In a Federal Register notice , USTR informs the public of interim 2003 import statistics relating to Competitive Need Limitations (CNL) under the Generalized System of Preferences (GSP) program. Public comments are invited by 5:00 p.m., March 31, 2004, regarding possible de minimis CNL waivers with respect to particular articles, and possible redesignations under the GSP program of articles currently subject to CNL. For more information, please refer to the Federal Register notice.

Zoellick Says China's Power Must Be Integrated Into World Community

During an address to the Asia Society on February 25, U.S. Trade Representative Robert Zoellick stated that China's increasing economic power and global influence must be integrated into the international community. Zoellick said, "For its part, China warrants respect, but needs to be careful not to trigger fears." He cautioned: "There is much at stake for both countries -- and the world -- in how China and the United States exercise power and responsibility.... Our long-term relationship with China depends on attitudes across America." The USTR called upon American business leaders who recognize China's opportunities and benefits to explain them to employees. View text of USTR Zoellick’s remarks to Asia Society (no lonager available)