July 2005 News

U.S. Still Working To Advance WTO Negotiations, Allgeier Says

In his remarks to the WTO Trade Negotiations Committee (TNC) on July 28, Deputy U.S. Trade Representative Peter Allgeier said that the U.S., while disappointed in the lack of progress in the WTO negotiations, remains committed to finding compromises that would move the talks toward an agreement. WTO members had been aiming to complete by now what was called a "first approximation" of a negotiated agreement plan. They would elaborate on the first approximation in the months before a WTO ministers' meeting in Hong Kong in December, with the idea of finishing an agreement a year later, at the end of 2006. The negotiators have made little progress, however, in the crucial areas of industrial trade (called nonagricultural market access, or NAMA) and especially agricultural trade. Allgeier said that during the August recess participants will be working to find a compromise on the agricultural market access issue. He reiterated the U.S. commitment to reducing domestic support in its farm programs, and his statement seemed aimed at the EU, which maintains the largest agricultural subsidy system by any measure, but has been demanding cuts by the United States. Allgeier also reviewed the work remaining in the negotiations on industrial goods, services, development, trade facilitation issues such as customs reform, and trading rules such as anti-dumping laws.

View transcript of Allgeier press conference

WTO: Supachai Urges Intensive Work for Hong Kong Success

WTO Director-General Supachai Panitchpakdi, in his final report as Trade Negotiations Committee Chairman, said on July 28 that achieving a successful Ministerial Conference in December is still possible, provided members dedicate themselves to politically engaged, results oriented, decision making mode of operation immediately after the (summer) recess. He said that as he prepares to step down as Chair, he wished to remind members that the negotiations "must be a means of improving economic opportunities and helping to fulfill the hope of development... (and thus) problems in the negotiations cannot be allowed to defeat us."

View report

Commerce Secretary Gutierrez Praises House of Representatives’ Passage Of CAFTA

Following the House of Representatives’ passage of the Central American Free Trade Agreement (CAFTA), Commerce Secretary Carlos M. Gutierrez released a statement in which he "applaud(s) the leadership shown…by members who voted to support President Bush’s trade agenda in our hemisphere." He added, "President Bush’s vision of free and fair trade in the America’s will help secure democracy in our neighborhood while securing our national and economic security."

View Commerce press release

Trade Negotiators Gather in Geneva To Take Stock of WTO Round

Trade negotiators are trying to find additional common ground in key areas of WTO negotiations before an August recess. According to a senior U.S. trade official, who spoke on background, the objective of the July 27 and 29 WTO General Council meetings is to identify additional areas of convergence and "set a platform" for the negotiations that will start up again in September under Pascal Lamy, the next WTO director-general. The meetings are focusing on four core Doha areas: agriculture, what is called nonagricultural market access (NAMA) -- basically industrial tariffs and nontariff barriers, services, and development. The key issue at this stage, he said, is market access in agriculture. An important development, he said, was that the U.S. and other countries that had been advocating what is called "Swiss formula" agricultural tariff cuts have since agreed to work on a "middle ground working hypothesis." Real progress on agricultural market access will depend on movement "from the other end of the spectrum, primarily the European Union, but also others in the G-10," he said. On NAMA, he said, the U.S. continues to "feel very, very strongly that the Swiss formula is the best approach for giving people ambition and new market access opportunities" while still allowing appropriate flexibility for developing countries.

View USIS Washington File report

White House Statement on CAFTA

During a July 26 briefing, White House Press Secretary Scott McClellan said that approval of the Central American Free Trade Agreement (CAFTA) by the House would be a demonstration of strong U.S. support for emerging democracies in Central America. "This agreement is a good way to show our support for those young democracies that are emerging and have a strong commitment to the betterment of their people," McClellan said, adding that these countries "need our support." The trade agreement, already approved by the Senate, would help lower trade barriers with the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua, as well as the Dominican Republic, creating a "leveled" trading field for the parties involved.

View USIS Washington File report

Portman Praises Textile State Members For Supporting CAFTA-DR

On July 25, U.S. Trade Representative Rob Portman praised key Members of Congress interested in textiles issues for their support of CAFTA-DR announced at a press conference on Capitol Hill. Portman thanked Representatives Spencer Bachus of Alabama, Bob Inglis of South Carolina and Mike Rogers of Alabama, for working with the Administration in support of the agreement. He said that CAFTA-DR "…is a great agreement for the American textile industry and American textile workers because it strengthens our relationship between yarn and fabric makers in the U.S. and apparel producers in Central America. Furthermore, it solidifies a market in our hemisphere that will enable our textile industry to compete against Asia.” Portman noted the upcoming House vote on CAFTA-DR and stated that the announcement “is a much needed shot in the arm and gives us extra momentum."

View USTR press release

WTO: Dispute Settlement Body Establishes Panels to Examine Aircraft Subsidy Disputes

On July 20, the WTO Dispute Settlement Body established two panels to examine, respectively, the U.S.’s complaint on the European Communities' (EC) subsidies to Airbus, and the EC's complaint regarding U.S. subsidies to Boeing. The U.S. said that, over its 35-year history, Airbus had benefited from massive amounts of European Union member states and EC subsidies. The U.S. stated that it remained ready and willing to negotiate an agreement to end the subsidies for the development and production of large civil aircraft.

View WTO news item

Gutierrez Hails Announcement Of International IPR Enforcement Coordinator

On July 22, Commerce Secretary Carlos M. Gutierrez hailed President Bush's creation of a senior position to help combat intellectual property violations. The President has tapped Chris Israel, currently the deputy chief of staff for Gutierrez, as the new Coordinator of International Intellectual Property Enforcement. The Secretary stated, "This new position will help us to be more aggressive and also help us to better coordinate our fight against intellectual property pirates." Israel will work with agencies across the Administration to develop policies to address international intellectual property violations and enforce intellectual property laws overseas. In this role, he will head the international work of the National Intellectual Property Law Enforcement Coordination Council (NIPLECC) and coordinate and supervise international intellectual property protection plans among other agencies. Israel will also play a significant role in the implementation of the Bush Administration's STOP Initiative.

View Commerce press release

U.S. Welcomes China Move to More Flexible Exchange Rate

The U.S. has welcomed China's move to a more flexible exchange rate as a contribution to global financial stability. In a July 21 statement, Treasury Secretary John Snow said that "reform of China's currency regime is important for China and the international financial system." He stated that the U.S. "will monitor China's managed float as their exchange rate moves to alignment with underlying market conditions." White House Press Secretary Scott McClellan said the administration is "encouraged" by China's announcement on ending a decade-old policy of pegging its currency to the U.S. dollar at 8.28. Federal Reserve Chairman Alan Greenspan also praised China's decision, calling it a "good start." Shortly after China's announcement, Malaysia said it would change its own currency peg and allow its currency to fluctuate more freely.

View text of Treasury Department press release

Senegal: New Commercial Service Office Fulfills AGOA Pledge

On July 19, Acting Deputy Secretary of Commerce Deputy Secretary David Sampson officially opened a new U.S. Commerce Department Commercial Service office in Senegal, fulfilling a key recommendation under the African Growth and Opportunity Act (AGOA) to develop trade relations in new sectors in sub-Saharan Africa. The new office completes a network across Western African that will help U.S. companies get a foothold in 18 emerging markets. Since AGOA, two-way trade between the United States and sub-Saharan Africa has risen substantially in the last few years, topping $44 billion last year. The new office includes a Senior Commercial Officer and two Commercial Specialists.

View Commerce press release

U.S. Urges Arizona Businesses To Protect Intellectual Property From Theft Overseas

On July 18, Under Secretary of Commerce for Intellectual Property Jon Dudas warned an audience of Arizona small businesspeople that they are increasingly at risk of overseas intellectual property theft -- even if they do not export -- and urged them to consider protective action. He stated that, while theft of intellectual property poses a serious threat to all American businesses, small businesses are particularly at risk because they often lack the knowledge and expertise to effectively combat it. The Arizona seminar is the second in a series the USPTO is hosting across the country to help educate American small businesses about the realities of piracy and counterfeiting. The campaign, in turn, is part of a much larger USPTO and federal government effort. The Strategy Targeting Organized Piracy (STOP!) Initiative also directed at small businesses, aims to combat criminal networks that traffic in fakes, stop trade in pirated and counterfeit goods at America’s borders and help small businesses secure and enforce their rights in overseas markets. As part of the initiative, the U.S. Patent and Trademark Office maintains a toll-free telephone hotline, 1-866-999-HALT, that helps businesses leverage the resources of the U.S. government to protect their intellectual property rights.

View USPTO press release

U.S., India Establish Forum To Promote Trade

On July 18, during the U.S.-India summit meeting in Washington, U.S. Trade Representative Rob Portman and India's Minister of Commerce and Industry Kamal Nath announced the establishment of the United States-India Trade Policy Forum to foster closer economic ties. In a USTR press release, Portman stated, "We anticipate much greater commercial activity in the goods and services areas as India's economy grows and as it continues to open its market to international trade and investment.” The first meeting of the Trade Policy Forum will take place before the end of this year. The agenda will cover the trade and investment policy concerns of both the governments. Subjects to be discussed could include: tariff and non- tariff trade barriers, investment, and intellectual property rights protection, among others. The Forum offers U.S. and India the opportunity to work together bilaterally towards a successful outcome of the WTO Doha Round. View USIS Washington File report (includes text of USTR statement and fact sheet on forum)

African Global Competitiveness Initiative Will Expand Trade Hubs

In a taped message to the AGOA Forum on July 18, President Bush announced the African Global Competitiveness Initiative. In a meeting with reporters, USAID Assistant Administrator for Africa Lloyd Pearson said that the initiative symbolizes the Bush administration’s commitment to jobs and long-term economic growth and development in Africa. Pearson said the new initiative will expand the three U.S.-Africa trade hubs that are currently operational: Gaborone, Botswana; Nairobi, Kenya; and Accra, Ghana, with a fourth hub to be announced as early as this week. As part of the initiative, information technology will be greatly enhanced and expanded so that all of the trade hubs will be more closely linked and “individuals can find out a lot more about economic development, investment opportunities, export opportunities in Africa,” Pearson said.

View USIS Washington File report

U.S.-Japan: Progress on Opening Japan to Foreign Investment

The U.S. and Japan recently released the annual report prepared for President Bush and Prime Minister Koizumi. The State Department welcomes Japan’s ongoing commitment to take concrete steps to reduce barriers to foreign direct investment in Japan as outlined in the United States-Japan 2005 Investment Initiative Report. The report applauds Prime Minister Koizumi’s strong commitment to encouraging foreign direct investment (FDI) in Japan, notably his pledge in January 2003 to double FDI stocks in Japan within five years. The report documents the Initiative’s success in promoting legislation passed this year that will expand access to merger and acquisition (M&A) techniques for foreign companies in Japan. The Investment Initiative is part of the U.S.-Japan Economic Partnership for Growth (EPG), which was launched by President Bush and Prime Minister Koizumi in June 2001 to support economic renewal and revitalization in both Japan and the U.S.

View State Department media note

Strengthening Commercial Ties Goal of Sampson Visit to Senegal and Morocco

Acting Deputy Secretary of Commerce David Sampson will travel to Dakar, Senegal, July 18-19, and to Casablanca and Rabat, Morocco, July 20-22. In Dakar, Sampson will participate in the African Growth and Opportunity Act (AGOA) Forum, speaking to plenary sessions on developing a broader market for American goods, strengthening protection of intellectual property rights and realizing commercial energy partnerships. He will also hold bilateral meetings with African leaders and officially open the first U.S. Commerce Department Commercial Service Office in Senegal. In meetings in Casablanca and Rabat, Morocco, Sampson will underscore the importance of implementing the U.S.-Morocco Free Trade Agreement and urge Moroccan leaders to deter widespread infringement of intellectual property rights.

View Commerce press release

China Must Address Economic, Security Concerns, Commission Says

During her remarks to a July 14 Carnegie Endowment for International Peace seminar, U.S.-China Economic and Security Review Commissioner Carolyn Bartholomew stated that China has not remedied the problem areas identified by the Commission last year in its annual report. She noted that many of the trends have worsened. Among the recurring issues Bartholomew listed are China’s failure to deal with such problems as compliance with its WTO commitments on intellectual property rights and market access to U.S. goods and services; a burgeoning trade deficit with the U.S.; and poor labor practices that contribute to the loss of U.S. jobs and the U.S. manufacturing base. In light of China's failure to address these lingering issues, Bartholomew said, the bid for the privately owned, California-based oil company Unocal from the China National Offshore Oil Company (CNOOC) -- an oil company with 70 percent of its stock controlled by the Chinese government -- raises troubling questions. According to Bartholomew, the CNOOC offer of $18.5 billion does not fit the bill of “free market activity” because it was “heavily subsidized” by the Chinese government. CNOOC's bid for Unocal also has implications for U.S. economic and national security, she said.

View text of Bartholomew’s statement

President Extols Benefits of U.S.-Central America Trade Pact

During a July 15 speech in North Carolina and during his weekly radio address , President Bush praised the benefits of the proposed U.S.-Central America-Dominican Republic Free Trade Agreement (known as CAFTA-DR). The President said that CAFTA-DR will help stabilize young democracies in Central America by boosting job growth in those countries while also expanding business opportunities in the U.S. Mr. Bush called on Congress to pass the agreement, saying, "It's a pro-jobs bill. It's a pro-growth bill. It's a pro-democracy bill. We cannot turn our backs on our friends." View White House fact sheet

EU: Update on Potential Withdrawal of Tariff Concessions and Increase in Duties, in Response to Enlargement

View the text of the Federal Register notice regarding potential withdrawal of tariff concessions and increase in duties in response to EU enlargement. In September 2004, USTR sought comments concerning a list of goods for which tariff concessions may be withdrawn and duties may be increased if the U.S. and EU could not reach agreement for adequate compensation owed under WTO rules as a result of EU enlargement. The Trade Policy Review Subcommittee is continuing to review the public comments it has received as a result of these Federal Register notices.

Flexibility Over Farm Tariffs Seen Advancing WTO Negotiations

At a July 13 press conference after the informal trade mini-ministerial meeting in Dalilan, China, Deputy U.S. Trade Representative Peter Allgeier said the ministers have moved to more flexible positions on reducing agricultural tariffs, thus making possible advances in the long-stalled WTO Doha negotiations. Allgeier said the U.S. and EU moved away from their opposite approaches on agricultural tariffs to consider alternatives offered by other countries, notably the G-20, a group of developing countries with special interest in agriculture. He stated that WTO negotiators would begin working on these alternatives in coming days and through the WTO General Council meeting scheduled for the end of July; the negotiations are scheduled to recess in August. During their meeting, the ministers reiterated their goal of having a December ministerial meeting in Hong Kong that would prepare for successful completion of the negotiations by the end of 2006. View USIS Washington File report (includes transcript of Allgeier’s remarks)

U.S.-Thailand FTA Fact Sheet

View the USTR fact sheet on the U.S.-Thailand Free Trade Agreement (FTA) negotiations. The two sides are holding their fourth round of negotiations this week in Great Falls, Montana. USTR said that the U.S. hopes to finish negotiations in early 2006.

Cabinet Secretaries Cautiously Optimistic on Trade Talks with China

At a July 11 press conference after the U.S.-China Joint Commission on Commerce and Trade (JCCT), Commerce Secretary Carlos Gutierrez, U.S. Trade Representative Rob Portman, and Secretary of Agriculture Mike Johans said the meeting produced "measured progress" on trade issues, but added that more needs to be done to address chronic concerns. Secretary Gutierrez cautioned that the true outcome of the meeting would be seen only over the coming months. When asked how the U.S. would measure the results of the JCCT talks, Gutierrez said U.S. officials would focus intensely on growth in U.S. exports to the Chinese market. Asked about progress on a bilateral dispute on textiles, Gutierrez said U.S. and Chinese officials were engaged in consultations as provided under WTO rules. Portman welcomed new commitments from the Chinese government to strengthen enforcement of intellectual property rights and improve regulatory transparency. Johanns, on his first visit to China as secretary of agriculture, said talks on agriculture were "very successful." View USIS Washington File report (includes transcript of press conference)

China: Gutierrez Calls 16th Annual JCCT “A Step Forward,” Says More Needs To Be Done

On July 11, U.S.-China Joint Commission on Commerce and Trade (JCCT) co-chair Commerce Secretary Carlos Gutierrez said progress is being made on market access for U.S. software and increased prosecutions for IPR violations, but noted that additional work is needed to further address U.S. concerns on a number of fronts. Gutierrez said, “The real outcome of this meeting will be known when we see the results in the months ahead. We will monitor all commitments closely.” During the meeting, the Chinese committed to taking a series of actions to address major U.S. trade concerns in several different areas: IPR, facilitating increased U.S. exports, opening markets for U.S. agriculture, and ensuring that trade is fair and non-disruptive.

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

On July 11, Assistant U.S. Trade Representative Ashley Wills and Iraq’s Minister of Finance, Dr. Ali Abdulameer Allawi, signed a Trade and Investment Framework Agreement (TIFA) during a meeting of the U.S. – Iraq Joint Commission on Reconstruction and Economic Development. Deputy Secretary of State Robert B. Zoellick, who chaired the U.S. delegation to the Commission meeting, attended the signing ceremony. Wills commented, "I am delighted that we have reached agreement with Iraq on the TIFA. Iraq is making a major effort to reintegrate into the international economy, and the meetings of the Joint Council should assist Iraq in this important endeavor.” The U.S. has TIFAs with a number of countries to develop bilateral trade and coordinate regionally and multilaterally through regular senior level discussions on trade and economic issues. In 2004 the U.S. exported to Iraq goods valued at $856.5 million. In the first four months of 2005 imports increased at a rate of 150%. Imports from Iraq were valued at $8.5 billion in 2004, mainly petroleum.

View USTR press release

White House Fact Sheet on G-8 Summit Accomplishments

On July 8 President Bush, with his G-8 partners, brought their Summit to a successful conclusion despite the London terrorist attacks. During their Summit the G-8 leaders discussed a wide variety of issues, including Africa, the global economy, trade, intellectual property rights, and the Middle East. Regarding trade, the leaders committed to: increase momentum towards an ambitious and balanced outcome in the WTO Doha Development Agenda talks; substantially improve market access, reduce trade-distorting domestic support, and eliminate all forms of export subsidies; and improve the participation of developing countries and support increased trade, including south-south trade and regional integration, which is crucial to catalyzing economic growth and raising incomes in developing countries. On intellectual property rights, the leaders committed their countries to: improve coordination of anti-counterfeiting and anti-piracy crime strategies, and ensure closer co-operation among enforcement officials; enhance detection and deterrence of the distribution and sale of counterfeit goods through the Internet and combat online theft; work closely with developing country partners to strengthen legislation, and build and help to improve national anti-counterfeiting, anti-piracy and enforcement capacities.

View White House fact sheet

View statement on WTO Doha Development Agenda

View statement on IPR

WTO: Supachai Sounds Warning on Doha Negotiations

During an informal meeting with ambassadors to the WTO on July 8, Director-General Supachai Panitchpakdi urged members to immediately change gear in the Doha trade negotiations, stressing that “progress is nowhere near sufficient in terms of our critical path to Hong Kong.” He said that there is still a “slender chance” of averting a crisis, “but every hour must be made to count.”

View text of Supachai’s comments

Bush Seeks End To Agricultural Subsidies By 2010

On July 7, President Bush said he wants to work with the EU to end agricultural export subsidies for U.S. and EU farmers by 2010 , a move that would help farmers in developing countries better compete in the global market. The President said the next meetings on the Doha Round, scheduled to take place in Hong Kong in December, is “the best place” to negotiate the issue. Mr. Bush spoke ahead of the first round of meetings at the G8 summit in Scotland. On July 5, African Union leaders meeting in Libya released a statement which, among other issues, called for "the abolition of subsidies that stand as an obstacle to trade" and for the adoption of a "calendar" for the abolition of these subsidies.

View USIS Washington File report

Commerce Secretary Gutierrez Applauds Senate Passage of CAFTA

In a June 30 statement, Commerce Secretary Carlos Gutierrez commended the Senate for its passage of CAFTA. The Secretary stated, "Thanks to President Bush’s leadership, we are continuing to open new markets, create more jobs and make sure that the U.S. economy remains the best in the world."

View Commerce press release

New NIST Web Service Tracks Foreign Technical Regulations

On July 1, 2005, Commerce’s National Institute of Standards and Technology (NIST) unveiled its Notify U.S. service to replace Export Alert! This new, free Web-based service offers a fast, comprehensive, global perspective on proposed technical regulations and conformity assessment procedures that might influence U.S. access to export markets. Notify U.S. provides U.S. users with access to notifications and full texts of regulations issued by the WTO members. In addition, users can monitor proposed changes across chosen countries and 41 fields of industrial or technical activities, or they can select a subset of fields. To learn more—and to sign up—go to the Notify U.S. Web site.

View NIST press release

Portman Statement Regarding Extension of Trade Promotion Authority

In a July 1 statement, U.S. Trade Representative Rob Portman noted that the extension of Trade Promotion Authority (TPA) became final, stating that it shows Congressional support for U.S. economic leadership and participation in the global trading system. He said that extension of TPA, as well as the CAFTA-DR’s progress toward full congressional approval, the House vote to support U.S. participation in the WTO, and recent U.S. victories in the WTO “provide(s) growing, positive momentum as the U.S. continues to provide global economic leadership” in the run-up to the G-8 summit and the work to advance the WTO Doha negotiations.

View USTR press release

WTO Releases 2005 World Trade Report

The application of technical standards by national governments can have both constructive and detrimental effects on international trade, according to the WTO’s 2005 World Trade Report (WTR). The report, written by economists in the WTO Secretariat, points out that such norms can deliver important benefits in terms of information for consumers, environmental protection and compatibility among related goods and services. But the report draws attention to the fact that technical standards can also be used as protectionist measures and can result in higher operating costs for developing country producers. The third in an annual series initiated by Director-General Supachai Panitchpakdi, the 2005 WTR also includes analytical essays on offshoring services (a particular aspect of outsourcing), air transport services and the use of quantitative economic analysis in dispute settlement. The report also touches on recent and selected medium-term developments in global merchandise and services trade, highlighting that real merchandise trade grew by 9 per cent in 2004, the strongest performance since 2001. Trade in services expanded by 16 per cent, measured in nominal terms.

View WTO news release

Portman Statement Regarding Senate Passage, House Ways and Means Approval, of CAFTA-DR

In a June 30 statement, U.S. Trade Representative Portman congratulated the Senate for approving the CAFTA-DR by a vote of 54 to 45. Meanwhile, the House Ways and Means Committee approved the CAFTA-DR implementing legislation by a vote of 25 to 16. Portman stated, "While the momentum for CAFTA-DR is clearly building, and we’re drawing more and more support from all sides, the debate will continue when the House returns after the July 4th recess. I look forward to working to build towards successful passage in July."

View USTR press release

U.S. Extends Trade Benefits to Tsunami-hit Countries and Iraq

On June 30, the U.S. announced that it will provide expanded duty-free trade benefits to Thailand, Indonesia, and other countries devastated by the December 2004 tsunami, and facilitate increased imports from Iraq. These actions result from the 2004 review of the Generalized System of Preferences (GSP) program. The U.S. also determined that over $1 billion in imports from selected developing countries are competitive in the U.S. market, and thus decided that these items should no longer be eligible for duty-free treatment under the GSP program. Importers must now pay normal tariff rates on these items. The U.S. also designated Serbia and Montenegro as eligible for benefits under the GSP program. The U.S. restored certain GSP benefits to Pakistan in view of its progress in addressing concerns regarding worker rights, as required by the GSP statute, and to India in view of its newly adopted patent protection law.