September 2004 News

U.S. and Pakistan Begin Bilateral Investment Treaty Negotiations

On September 28, U.S. Trade Representative Robert B. Zoellick and Pakistan Minister for Commerce Humayun Akhtar Khan announced that their two countries would begin negotiations on a Bilateral Investment Treaty (BIT). The two officials met at the conclusion of the first meeting of the Joint Council established by the U.S.-Pakistan Trade and Investment Framework Agreement (TIFA). Remarking that Pakistan and the U.S. are partners in combating global terrorism, Zoellick stated, “A BIT based on the high standards contained in our model text can play an important role in strengthening Pakistan’s economy, so as to create new opportunities for exporters and investors in both economies and assist in meeting the economic conditions to counter terrorism.”

View USTR press release

Ambassador Urges APEC to Fight Corruption, Ensure Transparency

The fight against corruption requires leadership, commitment, and action by all countries, according to U.S. Ambassador to Chile Craig A. Kelly. The USIS Washington File reported that, in September 25 remarks at the Asia-Pacific Economic Cooperation (APEC) Meeting of Government Anticorruption Experts, Kelly said that corruption is detrimental to all countries in many ways. Kelly urged APEC countries to implement the APEC Transparency Standards, which were developed in response to criticisms of the region's economies following the global financial crisis of 1997, and to coordinate with other multilateral and regional organizations to help implement the U.N. Convention Against Corruption. Kelley said the U.S. hopes APEC will make a commitment at the November 2004 Leaders' Summit in Santiago "to deny safe haven to corrupt officials, those who corrupt them, and their assets."

View USIS Washington File report

Good Governance is Key to Strengthening Democracy, Says U.S. Official

In September 27 remarks at a State Department conference on U.S. policies in Central America and regional progress through the Summit of the Americas process, U.S. Ambassador to the Organization of American States (OAS) John F. Maisto stated that fighting corruption and increased transparency are key to strengthening democratic governance throughout the Western Hemisphere. Maisto outlined U.S. efforts to work in concert with governments throughout the hemisphere in pursuit of common objectives. On the subject of fighting corruption, Maisto pointed to a growing recognition in the Americas that good governance and transparency are necessary in order for democratic institutions to flourish. He noted that the U.S. vigorously pursues foreign assets that are determined to be the proceeds of corruption, and works with other governments to return these diverted assets.

View USIS Washington File report

US Files WTO Case Against EU Over European Customs System

On September 21, U.S. Trade Representative Robert B. Zoellick announced that the U.S. is filing a WTO case against the European Union regarding EU customs laws and regulations. At issue is the fact that many important aspects of customs administration in the EU are handled differently by different member state customs authorities, resulting in inconsistencies from state to state. Although the EU is a customs union, there is no single EU customs administration. Lack of uniformity, coupled with lack of procedures for prompt EU-wide review, can hinder U.S. exports, particularly for small to mid-size businesses. WTO rules require WTO members to administer their customs laws in a uniform, impartial and reasonable manner. They also require members to provide tribunals for prompt review and correction of administrative action relating to customs matters. The U.S. considers that the EU fails to meet either of these requirements.

View USTR press release

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

On September 21, Assistant U.S. Trade Representative Ashley Wills and Afghan Minister of Commerce Sayed Mustafa Kazemi signed a Trade and Investment Framework Agreement (TIFA) in Kabul that provides a forum for Afghanistan and the U.S. to examine ways to expand bilateral trade and investment. The TIFA creates a Joint Council that will consider a wide range of commercial issues and sets out basic principles underlying the two nations' trade and investment relationship. Last year U.S. goods exports to Afghanistan were $61 million and imports were $56 million, which provides an environment for a substantial opportunity to increase bilateral trade.

View USTR press release

President Lifts Libya Sanctions

President Bush has lifted trade, commercial and travel sanctions on Libya with an executive order declaring an end to the national emergency declared by former president Ronald Reagan in January 1986. The executive order states that Libya's commitments and actions to eliminate its weapons of mass destruction (WMD) programs and Missile Technology Control Regime (MTCR) class missiles have significantly altered the potential threat to U.S. national security that the 1986 executive order sought to address. The executive order ends the need for U.S. businesses to seek special licenses for trade with Libya and paves the way for the resumption of direct air service between the two countries. The order also lifts sanctions on the importation of refined Libyan petroleum products into the United States. It also allows U.S. government agencies to promote U.S. investment in Libya and unblocks Libyan assets that had been frozen under the 1986 executive order.

View executive order

View Memorandum for the Secretary of State, The Secretary of Agriculture, The Secretary of Commerce

Lash Vows to Help North Carolina Fight Counterfeit NASCAR Goods

The Charlotte Observer reported that, during a meeting with Dale Earnhardt Inc. (DEI), which handles licensing for NASCAR drivers including Dale Earnhardt Jr., Assistant Secretary of Commerce for Market Access and Compliance William Lash III told DEI that Commerce would work with N.C. officials to help train prosecutors to take and handle counterfeiting cases. Since his appointment in 2001, Lash has championed enforcement of U.S. intellectual property rights. As part of that, he is adding five prosecutors who will work with U.S. companies to build stronger legal cases against bogus goods made overseas. The goal is to present foreign officials with more persuasive evidence to punish counterfeiters. NASCAR's $1 billion-plus merchandise business -- from decals to key chains and T-shirts -- is a lucrative target for counterfeiters.

View Charlotte Observer article

U.S. and Bahrain Sign Free Trade Agreement

On September 14, U.S. Trade Representative Robert B. Zoellick and Bahrain Minister of Finance and National Economy Abdulla Hassan Saif signed the U.S.-Bahrain Free Trade Agreement, a comprehensive agreement that will not only remove trade barriers and expand regional opportunities for the peoples of both countries, but will also promote liberty and opportunity in the Middle East. Two-way trade was nearly $900 million in 2003. On the first day this agreement goes into effect, 100 percent of consumer and industrial products and 81 percent of U.S. agricultural exports will be duty free. Bahrain will open its services market wider than any previous FTA partner, streamline digital trade, protect intellectual property, facilitate government procurement, and provide for effective enforcement of labor and environmental laws. In 2003, U.S. exports totaled more than half a billion dollars. This new trade opening will expand opportunities for exports of aircraft, machinery, vehicles, pharmaceutical and agricultural products such as meats, fruits and vegetables, cereals, and dairy products.

View USTR press release

China: Commerce Under Secretary Aldonas Launches New Tools to Help U.S. Companies Expand China Exports

During a visit to China with a delegation of U.S. manufacturers led by National Association of Manufacturers President Jerry Jasinowski, Under Secretary of Commerce for International Trade Grant Aldonas unveiled new tools to help U.S. companies expand exports to China's growing market: the China Business Information Center, American Trade Centers and the Global Supply Chain Initiative. The China Business Information Center (BIC) is the first comprehensive U.S. federal government resource aimed at helping American businesses take advantage of China's rapid integration into the global economy. The China Business Information Center is located within the Commerce Department's U.S. Foreign and Commercial Service (USFCS) and features practical information that the American exporter can use to achieve tangible commercial results. The American Trade Centers program increases the Commerce Department's ability to help U.S. companies tap into export markets in second-tier but very large commercial centers in China, such as Wuhan, Nanjing, Dalian, Chongqing, and Xiamen. The Global Supply Chain Initiative is aimed at helping U.S. small businesses identify global supply chains that will take American manufactured goods overseas. To highlight these new tools and encourage U.S. small businesses to consider exporting to China, Commerce Department is holding a series of outreach events throughout the U.S. in coming months to explain how the BIC website can assist new market entrants, highlight market opportunities, and address challenges to entering the China market. For more information on the China BIC, please visit export.gov/china or call 800-872-8723. Information about China BIC outreach events can be found on the Trade Events section of export.gov/china.

View Commerce Department press release

Request for Public Comments on GSP Designation for Serbia and Montenegro

In a September 10 Federal Register notice , the Generalized System of Preferences GSP Subcommittee of the Trade Policy Staff Committee (TPSC) announced that it is initiating a review to consider the designation of Serbia and Montenegro as a beneficiary developing country under the GSP Program and is soliciting public comment relating to the designation criteria. Comments are due October 12, 2004. For information on submitting comments, please consult the Federal Register notice.

Cambodia Ratifies WTO Accession

On September 9, Cambodia completed the ratification of its invitation to join the WTO. According to WTO guidelines, 30 days after notifying the WTO in Geneva, Cambodia formally becomes a member. After a year's delay, including one extension of the ratification deadline, Cambodia is ready to move ahead with promulgating the laws and regulations to which it obligated itself under the accession agreement.

Request for Public Comments on Withdrawal of EU Tariff Concessions

In a September 10 Federal Register notice the Trade Policy Staff Committee (TPSC) advised that the U.S. is continuing to negotiate with the EU regarding the EU's provision of adequate and permanent compensation to the U.S. for two recent EU actions that have increased duties on U.S. imports to EU markets above WTO bound rates of duty. On May 1, 2004, as part of its enlargement process, the EU raised tariffs above bound rates on some imports into the countries of Estonia, Latvia, Lithuania, Poland, Slovakia, the Czech Republic, Slovenia, Hungary, Cyprus and Malta. In addition, on September 1, 2004, the EU changed its rice import regime, raising tariffs on some rice imports above the maximum permissible WTO rate of duty. If either or both of these issues are not resolved, the United States may seek to exercise its rights under GATT Article XXVIII to withdraw substantially equivalent concessions and raise tariffs on select goods primarily supplied by the EU.The TPSC is seeking public comment on the attached list of goods for which U.S. tariff concessions may be withdrawn and applied duties may be raised. The TPSC will hold a public hearing on Friday, September 24, 2004, on the list which may be used for either or both of these issues. For information on submitting comments, please consult the Federal Register notice.

USTR Official Outlines U.S. Trade Agenda for Western Hemisphere

In September 8 remarks to the Hispanic Bar Association and Hispanic Council on Foreign Relations, Assistant U.S. Trade Representative (USTR) for the Americas Regina Vargo stated that the Bush administration's progress on expanding trade in the Western Hemisphere has been quite impressive. She added that the U.S. hopes to have free-trade agreements with every country on the west coast of North, South and Central America in the near future. Vargo said the passage of the FTAA remains a priority for the U.S., but acknowledged that hemispheric trade officials "have not found the magic formula to move forward on that negotiation."

View USIS Washington File report

U.S., Uruguay Conclude Bilateral Investment Treaty

On September 7, U.S. Trade Representative Robert B. Zoellick and Uruguayan Minister of Economy and Finance Isaac Alfie announced the successful conclusion of negotiations for a U.S. - Uruguay Bilateral Investment Treaty (BIT). The agreement will strengthen investment and trade ties between the two countries and will lead to better protection for U.S. investments in Uruguay. Zoellick commented that the agreement “marks another important step forward in President Bush’s work to build stronger economic ties between the United States and Latin America. Through investment and trade, we can support jobs, hope and opportunity in all the nations of the Western Hemisphere."

View USTR press release

Presidential Proclamation on GSP, Other Purposes

View the text of a Presidential Proclamation on the Generalized System of Preferences (GSP) and for Other Purposes. In the proclamation, the President designated Iraq as a beneficiary developing country for GSP purposes.

USITC Investigations on Possible Modifications to NAFTA Rules of Origin for Textile Articles

The U.S. International Trade Commission (USITC) is seeking input for two newly initiated investigations concerning proposed modifications of the NAFTA rules of origin for five textile articles. The investigations, Certain Textile Articles: Effect of Modifications of NAFTA Rules of Origin for Goods of Canada and Mexico (Inv. No. NAFTA-103-7) and Certain Textile Articles: Effect of Modifications of NAFTA Rules of Origin for Goods of Canada (Inv. No. NAFTA-103-8), were requested by USTR. The articles covered by Inv. No. NAFTA-103-7 are gimped nylon yarns and woven fabrics of viscose rayon filament yarns. The articles covered by Inv. No. NAFTA-103-8 are yarns spun from acid-dyeable acrylic tow, fabrics woven from yarns of combed camel hair or cashmere, and pile fabrics containing dry spun acrylic fibers. USITC will not hold a public hearing in connection with the investigations, but welcomes written submissions for the record. USITC expects to submit its advice to USTR by October 19, 2004. For information on submitting comments, please consult the USITC

news release

USTR Statement Regarding WTO Appellate Body Report on Canada Wheat Measures

View the text (no longer available) of USTR spokesperson Christopher Padilla’s statement regarding the WTO Appellate Body report, “Canada — Measures Relating to Exports of Wheat and Treatment of Imported Grain.” According to Padilla, the Appellate Body’s report does not alter the April 2004 finding that Canada’s grain distribution and rail transportation systems discriminate against U.S. grain. He stated that the April and August reports “…reaffirm the need to develop meaningful disciplines on agricultural state trading enterprises like the Canadian Wheat Board (CWB),” and added that the U.S. will continue to pursue such disciplines in the ongoing Doha negotiations.