January 2005 News

U.S. Waiver of Discriminatory Purchasing Requirements for Australia

View the Federal Register notice waiving discriminatory purchasing requirements with respect to goods and services covered by Chapter 15 of the U.S.-Australia Free Trade Agreement.

Unfair EU Restrictions on U.S. Rice Force U.S. to Notify WTO of Intent to Raise Tariffs

On January 28, the U.S. announced that it has asserted its WTO rights and notified the WTO of its intent to withdraw certain tariff concessions because it has not reached agreement with the EU over access to the European rice market. The EU unilaterally decided last September to change its rice import system by raising tariffs on brown rice imports above the rate to which it had agreed as part of the EU’s Uruguay Round obligations. The new system unfairly limits the access of American rice farmers to the European market, affecting U.S. brown rice exports valued at approximately $33 million a year on average since 1999. Under WTO rules, when a Member makes a change in its tariff obligations, certain trading partners are able to negotiate offsetting benefits. Because the U.S. and the EU were not able to reach agreement, the U.S. has the right to raise tariffs on an offsetting amount of imports.

View USTR press release

China: Deadline for Public Comment on Out-of-Cycle Review Extended

In a Federal Register notice (no longer available), USTR extended by two weeks the deadline for submitting comments in the Special 301 Out-of-Cycle Review of China. Dates: Submissions must be received on or before 5:00 p.m. on Monday, February 14, 2005. For more information on submitting comments, please consult the Federal Register notice (no longer available)

Commerce Under Secretary Aldonas Expresses U.S. Support for Transatlantic Business Dialogue

On January 27, 2005, Commerce Under Secretary for International Trade Grant Aldonas expressed the U.S. Government's strong and continued support for the Transatlantic Business Dialogue's (TABD) ambitious Barrier-Free Transatlantic Marketplace (BFTM) proposal. In a meeting on the fringes of the annual World Economic Meeting in Davos, Switzerland, Under Secretary Aldonas discussed U.S. actions to date on TABD proposals and the Bush Administration's support of initiatives to improve the transatlantic marketplace. At the meeting, officials representing both the U.S. and EU governments acknowledged the BFTM initiative as an invaluable contribution to the transatlantic economic relationship. In 2005, the TABD will continue their dialogues with the U.S. Government and the European Commission to ensure that their recommendations represent a broad consensus, are actionable, and have a measurable impact on transatlantic trade.

View ITA press release

USTR Zoellick to Attend World Economic Forum, Informal WTO Meetings in Davos January 28-30

U.S. Trade Representative Robert B. Zoellick will travel to Davos, Switzerland January 28-30 to attend the World Economic Forum (WEF) and discuss with his colleagues how to sharpen the focus of the Doha Development Agenda (DDA), and keep the talks on schedule. Opening markets has been a prime goal of President Bush, and as USTR, he has made the Doha negotiations a top priority. While in Switzerland, Zoellick will participate in a meeting with the International Business Council; join an informal session of ministers responsible for trade to discuss the Doha Development Agenda; and hold a number of bilateral meetings, among them with Australian Prime Minister John Howard, Brazilian Foreign Minister Celso Amorim, and Russian Trade Minister German Gref to review Russia’s WTO accession efforts.

View USTR press release

USITC To Assess Additional Preferences for Sub-Saharan African, Caribbean, and Andean Apparel

On January 24, the U.S. International Trade Commission (USITC) announced that it will follow procedures used in 2004 to gather information from industry and public sources for its advice to USTR in connection with the textile and apparel "commercial availability" provisions in the African Growth and Opportunity Act (AGOA), the U.S.-Caribbean Basin Trade Partnership Act (CBTPA), and the Andean Trade Promotion and Drug Eradication Act (ATPDEA). Under the new investigation, USITC will conduct individual product-specific reviews on the probable economic effect of granting duty-free and quota-free treatment to certain apparel imports from eligible AGOA, CBTPA, and ATPDEA beneficiary countries. Due to time constraints, the USITC will not hold public hearings in connection with the investigation or any of the requests it receives. However, interested parties will be invited to submit written statements for the record for each requested review. The USITC is particularly interested in receiving input from the private sector on the likely effect of the proposed action on U.S. producers, workers, and consumers.

View USITC press release

Western Hemisphere Important to U.S. Agenda, Rice Says

During her confirmation hearing before the Senate Foreign Relations Committee, Secretary of State-designate Condoleezza Rice stated January 18 that the Western Hemisphere is important to the U.S., and the Bush administration will work to promote democracy and economic development in the region. The secretary-designate said trade is an important component of the efforts to advance the region's democratic and economic development. She pointed to the success of the U.S. trade agreement with Chile, which entered into force in 2004, and the recently concluded trade agreement between the U.S., the Dominican Republic and the Central American nations of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua (DR-CAFTA), soon to be presented to the Senate for approval. Rice said that the Bush administration would prefer DR-CAFTA approval "sooner rather than later," and added that the U.S. continues to work with Brazil, as a co-chair, to move forward on forging a Free Trade Area of the Americas. Rice also said the U.S. continues to consult with Canada and Mexico on the future of the North American Free Trade Agreement and the next phases of North American economic integration

View USIS Washington File report

U.S.--Impact of Exports, Jobs and Foreign Investment, by State

View the ITA series detailing the effects of international trade and investment on each state’s economic infrastructure.

U.S. Announces Results of IPR Out-of-Cycle Reviews for Poland and Taiwan

On January 18, U.S. Trade Representative Robert B. Zoellick announced the results of USTR's Intellectual Property Rights Out-of-Cycle Reviews of Poland and Taiwan. As a result of the findings, Poland will remain on the Watch List, and Taiwan will be moved from the Priority Watch List to the Watch List, due to the progress it has achieved. Zoellick said that while the U.S. is encouraged by the steps Poland and Taiwan have taken to address long-standing concerns over piracy and counterfeiting of U.S. intellectual property, he added: “…a common thread in both reviews is the recognition of the need for stronger and sustained enforcement measures, including the necessity to protect data submitted by innovative pharmaceutical and agricultural chemical producers to obtain marketing approval.”

View USTR press release

China: Protecting Olympic Symbols from Counterfeiting

View the text of a South China Morning News article regarding China’s efforts to protect Olympic symbols from counterfeiting. According to the article, since China won the right to host the 2008 Games three years ago, they have passed a series of national laws protecting copyright of the Olympic images and more than 100 phrases like "Green Olympics", "Hi-tech Olympics" and "People's Olympics" that the city will use to promote the Games. They have conducted a national public education campaign encouraging citizens to turn in offenders, and have ordered commerce ministry officials to seize pirated Olympic merchandise. In a month-long crackdown on fake Olympics advertising shortly after Beijing won its bid to host the Games, officials tore down 690 billboards that illegally associated products with the event, and ripped fake Olympic emblems off 67,000 taxis.

Andean Trade Preference Act: Notice Regarding 2003 and 2004 Annual Reviews

In September 2004, USTR received petitions to review certain practices in certain beneficiary developing countries to determine whether such countries are in compliance with the ATPA eligibility criteria. In a November 15, 2004 notice, USTR published a list of responsive petitions that were accepted for review. This notice specifies the results of the preliminary review of those petitions as well as the status of the petitions filed in 2003 that have remained under review. For further information, please contact: Bennett M. Harman, Deputy Assistant U.S. Trade Representative for Latin America, at (202) 395-9446, or consult this Federal Register notice

USITC Report on U.S. Trade and Investment with Sub-Saharan Africa

On January 13, 2005, the U.S. International Trade Commission (USITC) released its fifth annual report on U.S. trade and investment with sub-Saharan Africa (SSA), intended to help President Bush develop a comprehensive trade and development policy for the countries of the region. In 2003, U.S.-SSA merchandise trade totaled $32.1 billion, an increase from $24.1 billion in 2002. U.S. exports to SSA increased by 13.1 percent in 2003 to $6.7 billion, and U.S. imports from SSA increased by 39.9 percent to $25.5 billion in 2003. U.S. imports from SSA countries eligible for AGOA benefits (including the GSP provisions) totaled almost $14 billion in 2003, an increase of 36.3 percent from $9 billion in 2002. In 2003, SSA received $8.5 billion in new foreign direct investment (FDI), or 6.3 percent of global foreign investment flows to developing countries. Net inward portfolio equity flows to SSA totaled $500 million in 2003. View USITC press release View U.S. Trade and Investment with Sub-Saharan Africa

USTR Statement Regarding Sutherland Report on the WTO

View the text of USTR Spokesman Richard Mills’ statement regarding the Sutherland report on the future of the WTO. View The Future of the WTO: Addressing Institutional Challenges in the New Millennium

China Pressed to Forcefully Attack Intellectual Property Theft

Chinese leaders must "forcefully confront" the problem of widespread piracy and violations of intellectual property rights that put increasing strain on U.S.-China trade relations, Commerce Secretary Donald Evans says.

View press release

U.S. Requests WTO Panel Against EU Over European Customs System

The Office of the U.S. Trade Representative today asked the World Trade Organization (WTO) to form a dispute settlement panel in the case against the European Union regarding EU customs laws and regulations.

View press release

U.S., EU Agree to Negotiate on Ending Aircraft Subsidies

On January 11, the U.S. and the EU agreed to hold bilateral talks to settle their dispute over subsidies to aircraft manufacturers Airbus and the Boeing Company rather than pursuing challenges against each other at the WTO. According to a USTR press release, the negotiations will last approximately three months and will focus on ending subsidies to large civil aircraft “in a way that establishes fair market competition for all development and production." The talks also will identify what types of aid the aircraft makers can still receive. The final agreement, which would replace a 1992 bilateral agreement that permits subsidies for commercial aircraft development, will be enforced through transparency and strong dispute settlement procedures. In October 2004, the U.S. announced it was taking the EU to the WTO to stop subsidies to Airbus, and the EU retaliated by announcing a counter-challenge over what it called "indirect" U.S. government subsidies to Boeing.

View USTR press release

Study Documents Negative Impact of U.S. Trade Deficit with China

According to a January 11 press release by the U.S.-China Economic and Security Review Commission (USCC), a new study prepared for the commission has found that the United States' growing trade deficit with China has had an increasingly negative impact on the U.S. economy, causing job losses that reach into the most technologically advanced industries in the manufacturing sector and affect every state. Robert Scott, director of international programs at the Washington-based Economic Policy Institute (EPI), prepared the study, "U.S.-China Trade, 1989-2003," for the commission, which found that 1.5 million jobs were lost to lower-wage Chinese competition during that period. The U.S. trade deficit with China rose twenty-fold, from $6.2 billion to $124 billion between 1989 and 2003, and is expected to increase another 20 percent in 2004, to $150 billion. The study noted that the pace of job loss has more than doubled since China entered the WTO in 2001, and that China's exports to the U.S. of sophisticated electronics and communications equipment requiring skilled labor are growing much more quickly than its exports of low-value, labor-intensive products.

View press release

View U.S.-China Trade, 1989-2003

Commerce Secretary Evans To Press China On JCCT Commitments

During his January 12-13 visit to China, Commerce Secretary Donald Evans will deliver the Administration’s message that last November's Presidential election will not change the U.S.-China relationship. Evans will tell senior Chinese officials that the Bush administration is committed to helping the U.S.-China trade relationship grow and remains focused on producing results. Evans will also press Chinese officials to live up to commitments they made last April during the U.S.-China Joint Commission on Commerce and Trade (JCCT). On January 12, Evans will deliver remarks to the AmCham/U.S.-China Business Council, where he will praise both groups for the work they have done in advancing the U.S.-China economic relationship. On January 13, Evans will deliver the keynote address to the Ambassador's Forum on International Property Rights Protection, where he will urge China to produce more results in eliminating piracy in order to further strengthen the U.S.-China trade relationship. During his visit to Beijing, Evans will also meet with senior Chinese government officials to discuss ways China can further follow through with commitments they have made to eliminate piracy and open the China market to U.S. goods and services. View USDOC press release (no longer available)

Armenia: Presidential Proclamation to Extend Nondiscriminatory Trade Treatment

On January 7, President Bush signed a Proclamation granting nondiscriminatory trade treatment to Armenia. The extension of nondiscriminatory treatment to products of Armenia shall be effective as of the date of signature of this proclamation. The extension of unconditional normal trade relations treatment to the products of Armenia will permit the U.S. to avail itself of all rights under the WTO with respect to Armenia.

View White House press release

USITC International Economic Review Features Articles on U.S. Trade With Andean Countries, Oil Demand In China

Expanding U.S. trade legislation with the Andean countries and trends in oil demand and imports in China are the topics covered in the November/December 2004 issue of the International Economic Review (IER), a publication of the U.S. International Trade Commission's Office of Economics. In addition, the publication reviews U.S. economic performance relative to other major trade partners, U.S. trade performance, and economic forecasts. Comparative economic indicators for major industrialized countries are also provided.

View USITC press release

View November/December 2004 issue of International Economic Review

USITC Begins Assessment of U.S. - Central America FTA

The U.S. International Trade Commission (USITC) has instituted an investigation to assess the comprehensive bilateral free trade agreements (FTA) that the President has proposed to establish with Central America (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua). The investigation, U.S. Free Trade Agreement with Central America: Potential Economywide and Selected Sectoral Effects, was requested by the U.S. Trade Representative (USTR) in a letter received November 17, 2004. USITC will hold a public hearing in connection with the investigation on January 18, 2005. Requests to appear at the hearing (one original and 14 copies) should be filed no later than 5:15 p.m. on January 4, 2005, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, D.C. 20436. For further information, call 202-205-1816.

View USITC press release

USITC Publishes 2005 Harmonized Tariff Schedule

The U.S. International Trade Commission (USITC) has published the 2005 Harmonized Tariff Schedule (HTS) of the United States. USITC updates and publishes the HTS annually, and it posts interim updates throughout the year on its Internet site. Two versions of the document are currently available on USITC's Internet site at www.usitc.gov/tata/hts. The first version, the 2004 Harmonized Tariff Schedule of the United States Annotated (HTSA)- Supplement 1, is applicable from July 1, 2004, through December 31, 2004. The second version, the 2005 HTSA, will be applicable as of January 1, 2005. It reflects changes to the HTSA as a result of the new U.S.-Australia Free Trade Agreement, which becomes effective on that date, and many other changes that have occurred since the publication of the 2004 HTSA - Supplement 1 in July.

View USITC press release

Landmark U.S.-Australia Free Trade Agreement Goes Into Effect

On January 1, 2005, U.S. Trade Representative Robert B. Zoellick announced that the U.S. - Australia Free Trade Agreement (FTA) entered into force. The agreement is the first FTA between the U.S. and a developed country since the U.S. - Canada Free Trade Agreement in 1988. More than 99 percent of U.S. manufactured goods exports to Australia have immediately become duty free. Manufactured goods account for 93 percent of U.S. exports to Australia. Zoellick stated: "I am also pleased that U.S. workers, businesses, farmers, and consumers will now begin to enjoy the wide-ranging benefits of this landmark agreement. This is a 21st Century, state-of-the-art agreement that reflects the modern globalized economy...[it] will strengthen U.S. - Australian economic ties and has the potential to increase trade between our countries by billions of dollars."

View USTR press release

View Australia Free Trade Agreement

Request for Comments: 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. 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 5:00 p.m. on Friday, February 11, 2005. For information on responding, please consult the Federal Register notice

Asia: Commerce Official Urges Greater Anti-Piracy Efforts

During his mid-December visit to Malaysia, Indonesia and South Korea, Commerce Assistant Secretary for Market Access and Compliance William Lash III focused on efforts to combat piracy. In Malaysia, Lash announced that U.S. and Malaysian Government officials, as well as industry representatives, would hold a roundtable in 2005 to consider ways of combating counterfeiting, which cost U.S. firms an estimated $242 million. He said that pirates were threatening the reputation of countries and industries and relations, as well as the safety and health of Malaysian consumers. Malaysia has launched thousands of raids on retailers of pirated products in recent years, but manufacturers have so far eluded severe prosecution that could help curb the problem, Lash said. Other measures that the Malaysian government should take include training judges to better evaluate evidence in piracy cases and curtailing the import of raw materials such as blank CDs that can be used by pirates, Lash added. Meanwhile, he urged South Korea to be vigilant in protecting its intellectual property rights, especially against the piracy prevalent in China. He stated, "Korea is a major producer of intellectual properties and has a lot to protect globally as well as in Korea."

View Malaysian National News Agency article

View Associated Press article

View Yonhap News article