October 2004 News

U.S., Uruguay Sign Bilateral Investment Treaty

On October 25, Deputy U.S. Trade Representative Peter Allgeier and Uruguayan Minister of Economy and Finance Isaac Alfie signed the U.S.-Uruguay Bilateral Investment Treaty (BIT) in Montevideo, Uruguay. Allgeier pointed out that the treaty will confer important benefits on both signatory countries. The U.S.-Uruguay pact "levels the playing field and ensures that Americans are treated equitably by increasing protection for U.S. investments in this South American nation," he said. "This agreement will also deepen our economic relationship with Uruguay, thus encouraging two-way trade.”

View USTR press release

U.S. Lists Concerns at WTO Trade Policy Review of the EC

During the WTO’s review of European Community trade policy on October 25, the U.S. posed a number of questions. Ambassador Linnet F. Deily, the U.S. permanent representative to the WTO and deputy U.S. trade representative, told the review session in Geneva, Switzerland that U.S. concerns should be viewed within the context of a "positive and thriving" U.S.-EU trade relationship. She said that many U.S. questions had to do with the implications of EU enlargement for EU trade policies and the access of non-EU trading partners to the enlarged market. At the session, the U.S. raised questions regarding regulation, intellectual property rights, and biotechnology.

View USIS Washington File report

President Signs Law Repealing U.S. Tax Breaks Ruled Illegal by WTO

On October 22, President Bush signed a law repealing U.S. export tax breaks that were ruled illegal by the WTO and have prompted retaliatory trade sanctions by the EU. According to a White House press release, the President has signed into law the "American Jobs Creation Act of 2004," which repeals the disputed Extraterritorial Income Act (ETI) and provides other tax breaks for business and reforms U.S. tobacco subsidies. The WTO has ruled repeatedly that the ETI and its predecessor, the Foreign Sales Corporation (FSC) program, were de facto export subsidies that violate international trade rules. EU officials have said they will lift their retaliatory tariffs on US exports as soon as the United States complies with WTO rules, but it remains unclear whether they will accept the new law as fully satisfying U.S. obligations.

View USIS Washington File report

USTR Zoellick Consults U.A.E., Oman on Free Trade Talks

U.S. Trade Representative Robert Zoellick has consulted with senior leaders of the United Arab Emirates (U.A.E.) about launching negotiations for a free trade agreement (FTA) with the U.S. He told reporters in Dubai on October 13 that if FTA negotiations were launched, the U.A.E. would be a "very positive partner" because its strengthened intellectual property standards are helping to draw investment and business and its financial services market is booming. Before traveling to Oman to assess that government's interest in negotiating an FTA, Zoellick said that FTA candidates must have a clear commitment to market reforms because the agreements are comprehensive.

View USIS Washington File report

Identification of Countries Denying Adequate IPR Protection

USTR is requesting written comments from the public concerning its requirement to identify countries that deny adequate and effective protection of intellectual property rights or deny fair and equitable market access to U.S. persons who rely on intellectual property protection. This is being done under Section 182 of the Trade Act of 1974, which is commonly referred to as the ``Special 301'' provisions in the Trade Act. In addition, USTR is required to determine which of those countries should be identified as Priority Foreign Countries. On May 3, 2004, USTR announced the results of the 2004 Special 301 review and stated that an Out-of-Cycle Review (OCR) would be conducted in the fall for Malaysia, Poland, and Taiwan. USTR requests written comments from the public concerning the acts, policies, and practices relevant for this review under Section 182 of the Trade Act. Submissions must be received on or before 12 noon on Friday, November 5, 2004. For information on responding, please consult the Federal Register notice

U.S. Calls on Japan to Bolster Regulatory Reform

On October 14, Deputy U.S. Trade Representative Josette Shiner presented the Japanese Government with extensive reform recommendations designed to help sustain Japan’s recent return to growth and open markets for U.S. companies. These recommendations build on significant progress achieved in recent years to reduce the myriad of regulations in Japan, including measures that have substantially lowered customs processing fees at Japan’s international airports for express delivery services, reduced rates for calling mobile phones, and increased consumer choice in innovative medicines. Submitted under the U.S.-Japan Regulatory Reform and Competition Policy Initiative (Regulatory Reform Initiative), the recommendations presented to the Japanese Government cover key areas such as information technologies, telecommunications, medical devices and pharmaceuticals, energy, and competition policy.

View USTR press release

View U.S. reform recommendations

Cambodia Accedes to WTO

Cambodia became the WTO’s 148th member on October 13, nearly 10 years after it first applied and just over a year after its membership package was approved at the Cancún Ministerial Conference. After Nepal joined on April 23, 2004, Cambodia is now the second least-developed country to join the WTO through the full working party negotiation process. It brings the current number of least-developed countries in the WTO to 32.

View WTO news item

U.S. Task Force Urges Tough Policies on Piracy, Counterfeiting

A U.S. Department of Justice (DOJ) task force report , released October 12 by Attorney General Ashcroft, is recommending a more aggressive strategy to combat piracy, counterfeiting and other violations of intellectual property rights (IPR) both domestically and overseas. The report calls for greater global cooperation against IPR crimes and stationing FBI agents and federal prosecutors at U.S. embassies in Hong Kong and Budapest to coordinate IPR enforcement in Asia and Eastern Europe, which are of "particular importance" because of the increasing amount of counterfeiting in those regions. Among other things, the report also urges DOJ to enhance IPR training programs for foreign law enforcement officials and emphasize IPR enforcement during discussions with other governments.

View Justice Department press release

Congress Finishes Work on Repealing WTO-Illegal Export Tax Breaks

The House and Senate have passed a bill that would repeal tax breaks ruled illegal by the WTO, which should end retaliatory trade sanctions imposed on U.S. imports by the EU since March. A White House official has indicated President Bush will sign the bill. The underlying goal of the legislation is resolution of a longstanding dispute with the EU over U.S. tax breaks to exporters under the Foreign Sales Corporation (FSC) law, and its successor regime, the Extraterritorial Income Act (ETI). The WTO has repeatedly ruled that the FSC/ETI provisions violate international trade rules on export subsidies and has authorized the EU to impose up to $4 billion in retaliatory tariffs on U.S. exports.

View USIS Washington File report

Roundtable on Enhancing Transatlantic Economic Relations to be Held in Washington October 28

The U.S. Departments of Commerce and State and the Office of the U.S. Trade Representative are inviting interested stakeholders to participate in an informal roundtable on facilitating innovation in the transatlantic marketplace. Deputy Assistant Secretaries Eric Stewart, Glyn Davies, and Deputy Assistant U.S. Trade Representative James Sanford will lead the discussion, which will be held at the U.S. Department of Commerce on Thursday, October 28, 2004, from 2:00 to 4:00 pm. This roundtable discussion is part of a series of listening sessions being held by U.S. Government officials to reach out to business, consumer, labor, environmental, and academic communities. For information on attending the session in Washington, please email Dan Fogarty at FogartyDJ@state.gov or Jen Levine at jen_levine@ita.doc.gov. Space is limited, so please inquire soon.

View text of announcement

U.S. Trade Representative Zoellick Promotes Middle East Free Trade Area

At the October 7 launch of the U.S.-Middle East Free Trade Coalition, U.S. Trade Representative Robert Zoellick stated that international trade and investment can create a context for greater peace, democracy and prosperity in the Middle East. Zoellick's address to the group focused on the progress that his office has made in establishing a Middle East Free Trade Area (MEFTA) as outlined by President Bush in May 2003. He said that the Middle East's share of international trade and investment is currently among the lowest in the world and that this has left the region far below its economic potential given its human and natural resources. Zoellick stated that free trade agreements between the U.S. and its Middle East partners have helped create a context for economic development and more open societies. He pointed to a report from Jordan stating that the U.S.-Jordanian free trade agreement has created 35,000 new jobs there.

U.S. Boosts Funding to Combat Counterfeiting, Piracy Overseas

On October 6, the State Department announced that the U.S. is spending an additional $1.19 million for overseas training to help combat counterfeiting and other violations of intellectual property rights (IPR). Deputy spokesman Adam Ereli said the new funding builds on $1.31 million for overseas IPR training announced in August, and is part of the Strategy Targeting Organized Piracy , a coordinated international effort to stop the theft of intellectual property. This next phase of U.S. funding will support IPR enforcement projects in Central and South America, Africa and Asia, and with the international police organization, Interpol. In a related fact sheet , the department's Bureau for International Narcotics and Law Enforcement Affairs (INL) outlined the 10 programs that will be supported with the additional funds.

View State Department press release

Free and Fair Trade: Real Results in Leveling the Playing Field

On October 5, the Commerce Department released a fact sheet, “Free and Fair Trade: Real Results in Leveling the Playing Field." This fact sheet details Administration efforts to level the playing field for America’s farmers, ranchers, workers and businesses by: opening new markets; removing barriers that hinder American exporters; bringing WTO enforcement actions; combating unfair trading practices; increasing dedicated trade enforcement resources; and empowering American workers to remain the best in the world.

U.S. Files WTO Case Against EU Over Unfair Airbus Subsidies

On October 6, U.S. Trade Representative Robert B. Zoellick announced that, in order to level the playing field for American workers and companies, the U.S. would file a WTO dispute settlement case against the EU regarding billions of dollars in unfair subsidies provided to Airbus by European governments. Zoellick stated, "This is about fair competition and a level playing field. Since its creation thirty-five years ago, some Europeans have justified subsidies to Airbus as necessary to support an ‘infant’ industry. If that rationalization were ever valid, its time has long passed. Airbus now sells more large civil aircraft than Boeing." In recent months, the U.S. has been urging the European Commission (EC) to negotiate a new agreement to replace the 1992 U.S.-E.U. Agreement on Large Civil Aircraft , which places limits on certain government support, including limiting it to one-third the costs of developing a new aircraft. Zoellick commented that the U.S. “…remain(s) open to negotiating a new accord – as long as it ends the new subsidies."

View USTR press release

View fact sheet on Airbus subsidies (pdf)

View recent chronology in Airbus WTO case

U.S. Customs and Border Protection to Protect Sound Recordings, Motion Pictures from Import Pirates

On October 5, U.S. Customs and Border Protection (CBP) published a Federal Register notice (pdf) regarding proposed regulations that will allow CBP to protect U.S. sound recordings and motion pictures from piracy while copyright registration is pending. The proposed regulations are part of the Strategy Targeting Organized Piracy (STOP), the Administration's comprehensive initiative to combat trade in pirated and counterfeit goods, that was announced on October 4, 2004. "Advances in technology have made the pirating of intellectual property rights (IPR) easy, costing our economy millions of dollars in lost revenue," said Commissioner Robert C. Bonner. "During the first half of fiscal year 2004, IPR seizures at our nations borders totaled $64 million. The proposed regulations will allow Customs and Border Protection to be more responsive to claims of piracy."

View CBP press release

U.S. Enhances Public Access to Regulatory Agencies and Rulemaking

Regulations.gov is the U.S. Government web site that makes it easier to participate in Federal rulemaking. On this site, users can find, review, and submit comments on Federal documents that are open for comment and published in the Federal Register, the Government’s legal newspaper. Regulations.gov enables stakeholders to submit comments about these regulations, and have the Government take their views into account.

USITC Report Assesses Impact of U.S.-Bahrain FTA

On October 1, the U.S. International Trade Commission (ITC) released its report assessing the comprehensive bilateral free trade agreement (FTA) that the President has entered into with Bahrain. The investigation, U.S.-Bahrain Free Trade Agreement: Potential Economywide and Selected Sectoral Effects, was requested by the U.S. Trade Representative (USTR). Under the agreement, Bahrain will provide immediate duty-free access for U.S. agricultural exports in 98 percent of its agricultural tariff lines. The U.S. and Bahrain will eliminate tariffs on any remaining products within 10 years. This trade liberalization is likely to increase the competitiveness of U.S. manufacturers and farmers in the Bahraini market.

View USITC press release

New Anti-Counterfeiting and Anti-Piracy Initiative Announced

On October 4, Secretary Evans and other officials announced the "Strategy Targeting Organized Piracy" (STOP) initiative, the comprehensive Administration initiative to protect American innovation by halting the trade in counterfeit and pirated goods. Under STOP, the Commerce Department established a new hotline that provides a one-stop-shop for businesses to protect their intellectual property at home and abroad. 1-866-999-HALT provides businesses with the information they need to leverage the resources of the United States Government to protect their intellectual property rights. View Commerce Department press release (no longer available) View text of Secretary Evans’ remarks (no longer available)

USTR Zoellick Reiterates U.S. Position on EU Subsidies for Airbus in Meeting with Lamy

On September 30, U.S. Trade Representative Robert Zoellick and EU Trade Commissioner Pascal Lamy held talks to discuss global and bilateral issues, including the next steps in the Doha round of international trade negotiations, the rise of China in the world economy, and the importance of working together to protect intellectual property rights (IPR) and combat counterfeiting. In a USTR press statement, Zoellick reiterated the position that current European subsidies to the Airbus consortium are unacceptable, and called for negotiation of a new bilateral agreement to create a level playing field and end the unfair support that Airbus receives from launch aid. He stated that the U.S. would "soon make a determination" as to how to end these subsidies, including bringing a case before the WTO "if need be."

View USTR press release

USTR Official Outlines Importance of U.S.-Andean Trade Accord

In remarks to the 2004 Colombia Investors Conference in New York on September 29, Deputy U.S. Trade Representative Peter Allgeier stated that the entry into force of a U.S. free-trade agreement (FTA) with Colombia, Ecuador and Peru will open important markets for the U.S., bolster the economies and counternarcotics efforts in the Andean nations, and should be concluded in a timely fashion. Allgeier noted that the conclusion of the FTA, which will include Bolivia at an appropriate stage, will provide the U.S. with preferential access to a combined market of 93 million people with a purchasing power of $453 billion. He said that while there is "much unrealized potential for U.S. exports to the region," the benefits of the U.S.-Andean FTA will extend beyond bolstering already significant economic ties between Andean countries and the U.S.

View text of Allgeier’s remarks