August 2005 News

USTR Statement on Textiles Talks with China

In an August 17 press release, USTR spokesperson John Stubbs stated that the U.S. and China had completed two days of productive talks on a broad textiles agreement, and plan to meet again soon. He said, "Both China and the United States are working towards a broad solution that provides greater certainty for the textiles market.” He added that “The U.S. would like to reach a deal soon, but we are not interested in a bad deal.” The U.S. will continue to consult with U.S. manufacturers and retailers and Congress regarding the negotiations.

View USTR press release

USITC Investigation Concerning Possible Modifications to GSP; Special Review on Watches

The U.S. International Trade Commission (USITC) is seeking input for a newly initiated investigation concerning possible modifications of the U.S. Generalized System of Preferences. USITC will provide advice with respect to the economic impact on U.S. industries of the elimination of import duties for all GSP beneficiary countries for carrageenan classified under HTS subheading 1302.39.0010. The Commission will also provide advice regarding several other issues, including consideration of the restoration to India of duty-free treatment under the GSP of ibuprofen under HTS subheading 2916.39.15. USTR will publish full article descriptions in the Federal Register. The USITC is expected to submit its confidential report to USTR by November 10, 2005. View USITC press release The Commission is also seeking input for a newly initiated investigation concerning possible modifications of the GSP for watches. The USITC will provide advice for all GSP beneficiary countries for certain watches classified under HTS subheadings 9102.11.10, 9102.11.25, 9102.11.30, 9102.11.45, 9102.19.20, 9102.19.40, and 9102.91.40. The Commission will provide separate advice for each watch HTS subheading as to the probable economic effects of the elimination of import duties on U.S. industries, as well as the effects on U.S. insular possessions. The USITC will submit its confidential report to USTR by February 17, 2006. View USITC press release

USITC to Update Advice to USTR on Probable Economic Effect of U.S. Tariff Reduction

The U.S. International Trade Commission (USITC) has launched a general factfinding investigation to update advice on the probable economic effect of the reduction of certain U.S. tariffs. In a July 29, 2005 letter, U.S. Trade Representative Portman requested that USITC update advice the agency provided in 2002 to help USTR prepare for the Doha WTO Round. For the current investigation, the USTR is asking USITC to update its advice on certain products that have experienced a substantial increase in imports since the period covered in the 2002 report. While the Commission will not hold a hearing in connection with this investigation, it welcomes written submissions for the record. Written submissions (one original and 14 copies) should be submitted at the earliest practical date but no later than 5:15 p.m. on September 16, 2005. The ITC will submit its report, which will be confidential, to USTR by December 13, 2005.

View USITC press release

Information on Open Panel Meetings in WTO Hormones Dispute

USTR wishes to notify the public that the WTO dispute settlement panels in the Hormones disputes (WT/DS320 and WT/DS321) have agreed to the request of the U.S., the EC and Canada to open their substantive meetings with the parties to the public. The proceedings, to be held on September 12-15, 2005, will be broadcast via closed circuit television to a separate viewing room at WTO Headquarters in Geneva, Switzerland. The WTO Secretariat has set aside 400 seats for the public, and interested parties may reserve seats on a first-come, first-served basis by filling out and returning to the WTO a form found on the WTO website by midnight (Geneva time) August 26, 2005. All applications will be handled exclusively by the WTO, and further details on the hearing may be found on the WTO website. This decision marks the first time in the history of the WTO that panel meetings will be made public—a step the U.S. has advocated taking for years. The U.S. is pleased that Canada and the European Communities agreed to do so in the Hormones disputes.

View USTR press release

U.S. and China to Negotiate Broad Textile Agreement

On August 11, USTR announced that its Special Textile Negotiator, David Spooner, will lead a USG interagency team to San Francisco August 16-17 to negotiate a broad textile agreement with the Chinese government. The interagency team will include the Departments of Commerce, State, Labor and Treasury. Spooner stated, "In our numerous consultations with our domestic textile and apparel industries and Members of Congress, we heard unambiguous calls for a more comprehensive approach to textile trade with China…As a result, we will commence negotiations on a broad agreement with the Chinese.” He added that the Administration “will utilize its WTO rights to level the playing field for American workers.” Further information regarding the status of China textile safeguard petitions can be found in the August 1, 2005 Department of Commerce documents below: View Press Release Committee for the Implementation of Textile Agreements (CITA) Announces China Safeguard Decisions View Fact Sheet: Decision to Extend the China Textile Safeguard Determination on Imports of Six Textile and Apparel Product Categories from China View Fact Sheet: Determination to Accept the Requests for Investigation of Imports from China View USTR press release

USITC Publishes The Year In Trade 2004

The Year in Trade 2004, released on August 5, 2005 by the United States International Trade Commission, provides a practical review of U.S. international trade laws, a survey of actions under U.S. trade laws, a summary of the operation of the WTO, an overview of U.S. free trade agreements and negotiations, and a review of U.S. bilateral trade relations with major trading partners. This report is one of the government's most comprehensive reviews of U.S. trade- related activities, covering major multilateral, regional, and bilateral developments.

View USITC press release

U.S. and Philippines Hold Trade and Investment Framework Agreement Meeting

During a recent meeting under their Trade and Investment Framework Agreement (TIFA), U.S. and Philippine officials discussed the full range of bilateral issues and coordinated on the WTO Doha Development Agenda negotiations. The two sides discussed a joint action plan to improve intellectual property protection in the Philippines. The Philippines committed to continuing to intensify its efforts to strengthen its intellectual property enforcement and prosecution of criminal cases against suspected intellectual property pirates. The two sides also discussed market access issues related to agricultural products, telecommunications, and autos. In addition, they exchanged views on specific steps the Philippines could take to improve its investment climate and trade capacity building projects that could help further build our trade relationship. They also coordinated on regional issues, and reaffirmed their commitment to an ambitious result in the Doha round. The U.S. welcomed the Philippines’ announcement that it would lift its ban on the importation of U.S. beef that had been imposed in response to prior concerns related to bovine spongiform encephalopathy (BSE). The Philippines also announced that it would not subject in-quota imports of poultry to safeguard duties, which ensures continued U.S. access to the Philippine poultry market, the second largest in Southeast Asia.

View USTR press release

Commerce Secretary To Lead First Trade Mission To Central America Since Passage Of CAFTA-DR

On August 4, U.S. Commerce Secretary Carlos M. Gutierrez announced he will lead a U.S. business development mission to Guatemala, Honduras, and El Salvador October 16-22, 2005, the first business mission following passage of the Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) signed by President Bush earlier this week. The mission will highlight new U.S. business opportunities and stronger trade ties with Central America. "CAFTA-DR levels the playing field for U.S. products and services while at the same time strengthening the fragile democracies of these Central American countries," said Gutierrez. "I look forward to leading this mission and meeting with Central American officials to begin fully implementing this important trade agreement and opening this new market for U.S. businesses." The Business Development Mission will target a wide variety of industry sectors, including automotive parts and services equipment, construction equipment, information technology, and pharmaceuticals.

View Commerce press release

U.S. Hails WTO Decision to Open Meetings in Beef Dispute

In an August 3 statement, USTR welcomed a WTO panel’s decision to open to the public for the first time its meetings with parties to a dispute over hormone-treated beef. The case pits the EU against the U.S. and Canada. USTR spokeswoman Neena Moorjani expressed satisfaction with the decision, stating that the U.S. has been advocating open panel meetings at the WTO for years as part of efforts to increase transparency in international trade forums. The panel’s meetings with third parties will remain closed, the statement said. The U.S. has led efforts to increase transparency in international trade forums. Following a US policy adopted under the GATT [General Agreement on Tariffs and Trade] 1947, the predecessor to the WTO, the U.S. was the first country to make WTO dispute statements and filings public.

View USIS Washington File report

View communication from WTO panels chairman

USTR Statement Regarding WTO Arbitrator’s Report on EU’s New Bananas Tariff

Commenting on the WTO arbitrator’s report regarding the EU’s new bananas tariff, USTR spokesperson Neena Moorjani stated, "We are gratified that the arbitrator's report supports our initial conclusion last fall that the EU's proposed new tariff was too high.” She added, “We expect, consistent with the terms of our 2001 Understanding and the WTO waivers, that the EU will work with its trading partners to implement the tariff-only regime by Jan. 1, 2006 in a manner that maintains total market access for the EU's MFN banana suppliers."

View USTR press release

View WTO arbitrator’s report

President Signs CAFTA-DR

During an August 2 ceremony at the White House, President Bush signed the U.S. free-trade agreement with Central America and the Dominican Republic (CAFTA-DR), stating that it will strengthen the economies and democracies of the CAFTA-DR countries. The President stated, "CAFTA is more than a trade bill; it is a commitment among freedom-loving nations to advance peace and prosperity throughout the region."

View transcript of President Bush’s remarks

CITA Extends Period for Making Determinations on China Textile Safeguards

On August 1, the Committee for the Implementation of Textile Agreements (CITA) announced its decision to extend the period for making determinations on six pending textile safeguard cases. Commerce Secretary Carlos M. Gutierrez stated, “Today’s decision will allow us time to engage in substantive discussions with our domestic textile and apparel industries and members of Congress on whether there is interest in a broader textile agreement with China.” He added, “We look forward to working with industry and Congressional leaders to get their views on the best way to ensure a level playing field.” Because of these consultations, the Committee is unable to make a determination within 60 calendar days of the close of the comment period. CITA also agreed to accept for consideration five safeguard petitions filed in July. For more information, please visit: http://otexa.ita.doc.gov View Commerce press release View Commerce Fact Sheet: Decision to Extend the China Textile Safeguard Determination on Imports of Six Textile and Apparel Product Categories from China View Commerce Fact Sheet: Determination to Accept the Requests for Investigation of Imports from China

Portman Still Optimistic on WTO Negotiations

U.S. Trade Representative Rob Portman says that, although the July 27-29 WTO General Council meeting failed to budge long-stalled negotiations, he believes an agreement will emerge because it is so important. Negotiators made little progress in the crucial areas of industrial trade (called nonagricultural market access, or NAMA) and especially agricultural trade, at the meeting. He said the U.S. will continue a leadership role in the Doha Development negotiations, viewing successful completion as "extremely important" to the global economy, especially to developing countries. Trade ministers from Hong Kong, India and Japan gave him "sober" assessments of the state of play in the negotiations, "but they all three shared my determination to succeed," Portman said. After an August recess, negotiators will resume in September the challenging work of putting together a draft for the Hong Kong ministerial. To Portman, the way ahead is simple: All parties will have to make politically difficult decisions. Regarding other issues, Portman commented that: Russia needs to implement intellectual property reforms and open its market to services in order to gain WTO accession; the U.S. and Swiss governments have not yet decided whether to negotiate a free-trade agreement; and the U.S. has not decided yet on an approach to negotiate limits on Chinese exports of textiles and apparel.

View transcript of Portman press conference

View text of Portman’s remarks to WTO General Council