June 2005 News

USITC To Provide Technical Analysis Of Doha Round

The U.S. International Trade Commission (USITC) is seeking input for a newly initiated investigation into the economic impacts that may result from the WTO Doha Round of trade negotiations. The investigation, Economywide Simulation Modeling: Technical Analysis of the Doha Round, was requested by U.S. Trade Representative Portman. In his letter to the Commission, Ambassador Portman noted that the U.S. is conducting an environmental review of a proposed trade agreement for the Doha Round. He requested that, as a contribution to the ongoing environmental review process, the Commission provide information that could contribute to the estimation and examination of the economic effects of the trade agreement so as to assist the Trade Policy Staff Committee (TSPC) in its environmental review of the proposed agreement. The Commission will not hold a hearing in connection with this investigation, but it welcomes written submissions for the record. For information on transmitting submissions, please consult the USITC press release. USITC will submit its report, which will be confidential, to USTR by March 27, 2006.

U.S., Canada and Mexico Deliver Initial Security and Prosperity Report

On June 27, Commerce Secretary Carlos Gutierrez, Department of Homeland Security Secretary Michael Chertoff, and their government counterparts from Mexico and Canada released the first report of the Security and Prosperity Partnership of North America (SPP) that identifies initial results, key themes and initiatives, and work plans that further promote the security and prosperity of North America. “Success in the 21 st Century global economy demands regional strategies,” said Secretary Gutierrez. “This report is a blueprint to secure North American leadership in the global economy and makes North America the best place in the world to live and do business.” Key initiatives identified by the prosperity working groups include the development of a coordinated strategy by 2006 to combat counterfeiting and piracy in North America. This report also reflects input from stakeholders in the private sector, as well as state and local governments in all three countries.

View Commerce press release

View SPP web site

U.S. Wins WTO Semiconductor Case

On June 27, U.S. Trade Representative Rob Portman announced that the WTO Appellate Body reversed a WTO panel and sided with the U.S. in a dispute involving subsidies provided by the Government of Korea to Hynix, a Korean manufacturer of memory semiconductors. This, according to USTR, is a major WTO litigation win for the U.S. In the report, the Appellate Body agreed with the U.S. that a WTO panel was incorrect in concluding that U.S. countervailing duties on Hynix semiconductors were improper. U.S. countervailing duty rates of 44 percent ad valorem will remain in place. Portman called the decision “… an important turnaround for U.S. high-tech manufacturers, as well as the international trading system." He added, “This is another example of how the Administration, day-in and day-out, is working aggressively to use U.S. trade laws to level the playing field and, when needed, to defend our actions at the WTO." Under WTO rules, Appellate Body reports are not subject to further appeal.

View USTR press release

View WTO Appellate Body report

White House Submits Central American Trade Pact for Approval

President Bush submitted the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) to Congress on June 23. In his transmittal letter , the President called the agreement a "historic development ... that reflects the commitment of the United States to supporting democracy, regional integration, and economic growth and opportunity in a region that has transitioned to peaceful, democratic societies." He said that CAFTA would benefit U.S exporters as well as contribute to improved worker rights and environmental protection in CAFTA countries, and he urged lawmakers to approve the agreement. For additional information on the trade pact, see Central America Free Trade Agreement-Dominican Republic

United States and Indonesia Meet Under Trade and Investment Framework Agreement

U.S. officials met June 20-21 in Washington, D.C. with their Indonesian counterparts for the second meeting in three months under the United States-Indonesia Trade and Investment Agreement (TIFA). The two sides agreed to jointly examine how to deepen their trade relationship and to conduct associated capacity building projects. They also agreed to meet again later this year to continue their dialogue.

View full article

Russian Economic Reforms Impressive but Insufficient, Says U.S. Ambassador to Russia

There have been “stunning advances” in Russian economic policy over the past four years as well as some impressive economic achievements, says U.S. Ambassador to Russia Alexander Vershbow, but these alone are unlikely to lead to the sustained and broad-based economic growth needed to pull most Russians from poverty. He went on to praise several of Russia’s recent economic reforms.

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Assistant Secretary, William Lash, Goes to Valletta Market

The US Assistant Secretary of State of Commerce for Market Access and Compliance took a direct look at intellectual property right violations in Malta last week by touring the Valletta market. The issue was among topics raised in talks with Maltese government officials.

View full article

United States Wins WTO Challenge Against Japanese Restrictions on U.S. Apples

U.S. Trade Representative Rob Portman applauded a June 23 WTO panel decision siding with the U.S. in its dispute against Japanese restrictions on U.S. apples. The U.S. estimates that U.S. apple exports to Japan would be $143.4 million in the absence of Japan’s restrictions. Ambassador Portman stated, "This is a solid victory for the U.S. apple industry… The WTO panel’s clear and well-reasoned decision sets a scientifically-based standard to be used by Japan and other countries. Japan has unfairly used unscientific restrictions to block U.S. apple exports for years. This is a great example of how the Administration is actively enforcing our trade agreements." The panel report makes very clear findings in favor of the U.S. that Japan's revised restrictions are still inconsistent with its WTO obligations. The panel sided with the United States on all of the major issues in dispute.

U.S., Vietnam Strengthen Cooperation as Companies Sign Business and Licensing Agreements

During their June 21 meeting, President Bush and Vietnamese Prime Minister Phan Van Khai pledged greater cooperation between their two countries on issues such as regional security, counterterrorism, economic growth, and health and humanitarian concerns, according to a joint statement released by the White House. The meeting between Bush and Khai marked 10 years of restored diplomatic relations between the United States and Vietnam following the U.S. military involvement in Vietnam from 1965 to 1973. The President and Prime Minister applauded the success of the U.S.- Vietnam Bilateral Trade Agreement (BTA) in accelerating two-way trade, and they reaffirmed their governments’ determination to implement fully the commitments made under that agreement. President Bush expressed strong support for Vietnam’s accession to the WTO. The two leaders welcomed the substantial progress achieved on the complete range of issues in the recent bilateral negotiations regarding the obligations of membership and agreed to intensify efforts to resolve remaining issues. They also agreed to work together to promote favorable conditions for increased U.S. investment in Vietnam. On the same day, Secretary of Commerce Carlos Gutierrez and Vietnamese Prime Minister Phan Van Khai witnessed the signing of a series of major business and operating license agreements between U.S. and Vietnamese companies, according to a Commerce press release. The agreements, worth hundreds of millions of dollars, are expected to create more than 5,000 jobs. They involve Boeing, Motorola, Unocal International Corporation, and the international arm of the New York Life Insurance Company. Secretary Gutierrez commented, "These agreements demonstrate the enormous potential in our commercial relationship and highlight the growing economic partnership between the U.S. and Vietnam…The negotiations and contracts that these companies have undertaken are a historic occasion."

USITC Investigation on Possible Modifications of NAFTA Rules of Origin

The U.S. International Trade Commission (USITC) is seeking input on a newly initiated investigation concerning proposed modifications to the NAFTA rules of origin. The investigation, Probable Effect of Certain Modifications to the NAFTA Rules of Origin (Inv. No. NAFTA-103-012), was requested by USTR. USITC will provide advice on the probable effect of the proposed rules of origin modifications on U.S. trade under the NAFTA and on domestic industries. The articles covered by the investigation include glass and glassware; copper; nickel and articles thereof; televisions; information technology agreement goods; and controls. A detailed list of the proposed modifications is available from the Office of the Secretary or by accessing the Commission's Federal Register notice on USITC’s web site. The U.S. NAFTA rules of origin can be found in General Note 12 of the 2005 Harmonized Tariff Schedule, also posted on the ITC web site, and the most recent updates to the current U.S. NAFTA rules of origin can be found in Presidential Proclamation 7870 of February 9, 2005 (70 FR 7611).

View USITC press release

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

On June 21, U.S. Trade Representative Rob Portman and Mozambique Minister of Industry and Commerce Antonio Fernando signed a Trade and Investment Framework Agreement (TIFA) that will provide a forum to address trade issues and will help enhance trade and investment relations between the U.S. and Mozambique. Ambassador Portman commented that the TIFA will build on the U.S.'s bilateral trade and investment relationship with the Government of the Republic of Mozambique and the recent enactment of the U.S.-Mozambique Bilateral Investment Treaty (BIT). Created by the TIFA, a U.S.-Mozambican Council on Trade and Investment will be formed to address a wide range of trade and investment issues that include, but are not limited to, trade capacity building, intellectual property, labor, environmental issues, and enhancing the participation of small and medium sized enterprises in trade and investment.

View USTR press release

President Bush Hosts U.S.-EU Summit

On June 20, President Bush hosted the U.S.-EU summit. President Bush, European Council President Juncker, European Commission President Barroso, and High Representative Solana discussed a wide range of issues, including the Middle East and terrorism. Regarding trade, the President noted that, with annual U.S-EU trade of nearly $1 trillion, disputes are inevitable, but added that the two sides will “work those disputes out for the sake of our respective countries.” He reiterated U.S. and EU commitment to the WTO’s Doha Round and fair and free trade. The President noted that the participants discussed China and its need to adhere to WTO rules, and that China “should work to do something with her currency so that the trade between our respective countries is fair.” They discussed how the U.S. and Europe “can work together to make sure that the world trades more freely and more fairly for the sake of … our peoples.”

View transcript of leaders’ remarks

View fact sheet on fighting global piracy and counterfeiting

View fact sheet on enhancing economic integration and growth

New Strategy To Help Protect, Facilitate Global Trade, U.S. Says

During a June 17 interview with USIS Washington File, U.S. Customs and Border Protection (CBP) Commissioner Robert Bonner said that a new international strategy can help nations better protect the world trading system from terrorism and meet the challenges of growing global trade. He said that the World Customs Organization (WCO) framework of standards to secure and facilitate trade has the potential to improve dramatically the security of trade and make its flow more efficient. Bonner is in Europe this week to urge 165 members of the WCO to formally adopt the framework when its council meets June 23-25 in Brussels. Bonner said that, by strengthening trade security, countries will be able to remove some impediments within the trading system, thus making it more efficient. The framework offers comparable tangible benefits to qualified businesses in different countries in the form of reduced inspections and expedited processing of shipments across national borders, he added.

View USIS Washington File report

NIST Unveils New "Notify U.S." Service

The Commerce Department's National Institute of Standards and Technology (NIST) will replace its Export Alert! service with "Notify U.S." beginning July 1. "Notify U.S." (which is free and web-based), will distribute WTO Agreement on Technical Barriers to Trade (TBT) information to U.S. citizens, industries, and organizations. Current Export Alert! subscribers will need to register again with the "Notify U.S." service, since Export Alert! will automatically cease distribution on July 1. For more information, please contact NIST at: notifyus@nist.gov.

Portman Hoping for Continued Progress in Partnership with Europe

In advance of the June 20 U.S.-EU summit, U.S. Trade Representative Rob Portman met with EU Trade Commissioner Peter Mandelson in Washington June 17. Portman said he hoped the summit would result in "further progress on regulatory cooperation," as well as "additional gains together in terms of enforcing intellectual property rights." Portman and Mandelson also discussed the Doha round of trade talks, during which Portman voiced concerns that those "talks have lagged." The two officials, representing what Portman called the "two largest trading partners in the world," also looked ahead to meetings in Dalian, China, Geneva, and Hong Kong later in the year.

View transcript of Portman-Mandelson media availability

Allgeier to Succeed Deily as U.S. Ambassador to WTO

On June 15, U.S. Trade Representative Rob Portman thanked Ambassador Linnet Deily for her four years of outstanding service as the U.S. Representative to the WTO, and announced that he will transfer Deputy USTR Peter Allgeier to Geneva to replace her. Ambassador Allgeier is expected to take up the post permanently in the Fall, but in the meantime will divide his time between Geneva and his current responsibilities in Washington until his successor is in place. Portman stated, “Ambassador Deily has done a superlative job in representing the United States at the WTO. Because of her efforts, the United States is recognized for its leadership in launching the Doha Round of multilateral trade negotiations in November 2001, in advancing the Doha negotiations, and in strengthening the system of international trading rules and the WTO institution itself." Portman is “very pleased that Ambassador Allgeier has agreed to succeed Ambassador Deily in Geneva… he is well-known at the WTO and will ensure that we have a seamless transition as we change our leadership in Geneva."

View USTR press release

USITC Report on Possible U.S.-Singapore FTA Modifications

The U.S. International Trade Commission (USITC) issued its report concerning proposed modifications of the U.S.-Singapore Free Trade Agreement (SFTA) rules of origin for apparel of certain yarns and fabrics. The investigation Certain Yarns and Fabrics: Effect of Modification of U.S.-Singapore FTA Rules of Origin for Goods of Singapore (Inv. No. Singapore FTA-103-10), was requested by USTR. If adopted, the proposed rules of origin would apply to U.S. imports from and U.S. exports to Singapore. View USITC press release

U.S. and Russia Sign Agreement on Meat Market Access

On June 15, U.S. Trade Representative Rob Portman announced that the U.S. signed an agreement with the Russian Federation confirming a previous understanding allowing for specified access for U.S. poultry, beef and pork in the Russian market. "The signing of this agreement is an important step forward in U.S.-Russian agricultural relations and enables us to negotiate with greater certainty on agricultural issues as part of the Russian Federation's bid to join the World Trade Organization," stated Ambassador Portman. The agreement, portions of which the Russian Federation has applied since 2004, confirms a special mechanism by which the United States may export a specific quantity of each of these products at a mutually agreed tariff level. Quantities above these special measures would be subject to a higher tariff, operating in a similar manner to tariff-rate quotas.

View USTR press release

U.S. and EC Block Each Other's First Requests for Panels in Boeing-Airbus Disputes

At the June 13 WTO Dispute Settlement Body (DSB) meeting, the U.S. and EC blocked each other's first requests for panels in their Boeing-Airbus disputes. The DSB agreed to revert to these matters at a future meeting. The U.S. said that the EC and some of its member states (France, Germany, Spain and the UK) had provided subsidies to Airbus inconsistently with their obligations under several provisions of the WTO Subsidies and Countervailing Measures Agreement and the GATT 1994. The U.S. said that every major Airbus aircraft model had been financed, in whole or in part, with government subsidies mostly taking the form of “launch aid.” The U.S. stated that apart from the launch aid, the member states of the EC had written off several billions of euros worth of debt owed by Airbus, had made numerous equity infusions and grants into Airbus companies that private investors would not have made and, together with the EC, had provided billions of euros to Airbus for civil aeronautics research and development. The US stated that these numerous subsidies had helped Airbus to capture over 50 per cent of the market for large civil aircraft and it was time that these subsidies were halted.

View WTO news item

Open Trade, Investment Will Fuel African Progress, Bush Says

In a June 10 message to the African people, President Bush said there is a growing consensus in both Africa and the U.S. that open trade and international investment are the surest and fastest ways for Africa to make progress. In the message, broadcast on Voice of America, the President stated that nations prospering under the African Growth and Opportunity Act (AGOA) are strengthening the rule of law, lowering trade barriers, combating corruption, protecting workers, and eliminating child labor. They are setting an important example for the entire continent, he said.

View text of President's statement

Gutierrez And Snow Praise OECD Study On Benefits Of Transatlantic Free Trade And Investment

U.S. Secretary of Commerce Carlos Gutierrez and Secretary of Treasury John W. Snow praise the Organization for Economic Cooperation and Development (OECD)'s release of a report indicating the importance of reducing U.S.- EU regulatory barriers. The report, entitled "The Benefits Of Liberalizing Markets and Reducing Barriers to International Trade and Investment: The Case of the United States and the European Union," finds that further work could result in benefits of up to $300 billion for the U.S. and a similar - or even greater- benefit for the EU. "The American consumer is currently picking up the tab for duplicative regulations at the grocery store, the electronics store, car dealerships and department stores," Secretary Gutierrez said. "As this study displays, creating greater efficiency in transatlantic trade and investment, while maintaining high standards of safety, will put more money back in the pocket of American consumers…"

View Commerce press release

View OECD report

Gutierrez Statement On Former President Carter’s Endorsement Of CAFTA-DR

On June 9, Commerce Secretary Carlos Gutierrez released a statement applauding former President Jimmy Carter’s support for the Central American Free Trade Agreement (CAFTA-DR). The Secretary stated, “President Carter’s progressive ideas and concern for workers rights in Central America, for jobs here at home, and for security and prosperity for our hemisphere is a great testament to the wisdom of supporting CAFTA.”

View Commerce press release

Portman Praises House For Rejecting Resolution Withdrawing Congressional Approval For WTO Membership

On June 9, U.S. Trade Representative Rob Portman issued a statement praising the House of Representatives’ 338-86 vote against a resolution withdrawing Congressional approval for U.S. membership in the WTO. Portman stated, "American exporters face high tariffs and other trade barriers around the world, and the ongoing Doha trade negotiations offer us the best opportunity to really level the playing field."

View USTR press release

Portman Urges Support for Central American Trade Pact

View the text of U.S. Trade Representative Rob Portman’s remarks to the Hispanic Alliance for Free Trade, urging congressional passage of the Central American-Dominican Republic Free Trade Agreement (CAFTA-DR). Noting the reluctance of some members of Congress to support the agreement because of concerns over labor rights, Portman stated that the CAFTA-DR “is the best trade agreement ever negotiated by the United States on labor rights.” He also announced his willingness to work with Congress to go beyond CAFTA-DR’s provisions and implement "a long-term strategy to improve labor rights enforcement in Central America and the Dominican Republic."

Africa Eager To Increase Its Share of World Trade

After meeting with African Union trade ministers on June 8, Deputy U.S. Trade Representative Peter F. Allgeier stated that that the ministers are eager to increase Africa's share of the growing world market, which has declined. Allgeier said that the U.S. and EU think that the Doha negotiations can help to reverse this downward trend. Allgeier and USTR senior trade negotiator Dorothy Dwoskin were invited to attend the meeting along with EU Trade Commissioner Peter Mandelson. The U.S. officials also had bilateral meetings with ministers from Egypt, Rwanda, Kenya, and South Africa, as well as Zambia, which is the chair of the 50 least-developed countries of the WTO for 2005, and Senegal, which will host the AGOA (African Growth and Opportunity Act) Forum in July. Allgeier said that African nations remain concerned about competing with Asian textile and apparel manufacturers, despite the tariff preferences of the African Growth and Opportunity Act (AGOA).

View USIS Washington File report

U.S. Wins WTO Challenge Against Mexican Rice Duties

On June 7, U.S. Trade Representative Rob Portman announced that a WTO panel sided with the U.S. in an agricultural dispute involving Mexican antidumping duties on U.S. long grain white rice. The panel stated that such duties, as well as various provisions of Mexico’s antidumping and countervailing duty laws, are contrary to WTO rules. Portman stated, "Trade remedy laws are an essential part of the international trading system - but those laws must be used in accordance with the rules. Mexico's laws were not applied fairly, and we believe that disadvantaged our rice farmers.” Mexico is an important and growing export market for U.S. rice farmers. In 2004, Mexico imported approximately $183 million of U.S. rice.

View USTR press release

U.S. Expands Outreach in Campaign to STOP! Trade in Fakes

Officials representing the Commerce Department and six other federal agencies will travel to Europe June 6-10 in the next leg of the Administration’s Strategy Targeting Organized Piracy (STOP!) to deepen cooperative enforcement efforts against the trade in fakes. The U.S. delegation will seek expanded opportunities for international cooperation in the European Union, United Kingdom, Germany and France against a trade that threatens livelihoods, health and safety worldwide. Outreach to other regions will occur later this month. Commerce Secretary Carlos Gutierrez stated that Commerce “…has been working closely with businesses, large and small, to crack down on intellectual theft from the first days of this Administration. We look forward to working with our European partners in an aggressive, unified fight against intellectual property theft." On each leg of the trip, U.S. officials will meet with government officials and representatives of the private sector to learn about their successful enforcement programs and to share proposals to stop the trade in fakes following a model that generated fruitful discussions and interest during travel to Asia. The delegation includes Deputy Assistant Secretary of Commerce for Trade Agreements and Compliance Stephen Jacobs.

View Commerce Department press release

Gutierrez Urges China to Protect Intellectual Property, Defends Textile Import Controls

During a June 3 press roundtable in Beijing, Secretary of Commerce Carlos Gutierrez said the U.S. believes that pirating intellectual property is no less criminal than counterfeiting money, and U.S. trading partners should do more to prevent piracy of copyrighted goods. Gutierrez stated that China's government has made progress in passing legislation to curtail intellectual property piracy, but needs to do more with enforcement. Regarding recently placed U.S. constraints on Chinese textile imports, the secretary said, "Textiles happen to be an area where the information and facts suggested market disruption was occurring.” Therefore, he said, under WTO rules, “we have the right to put in place safeguards." Gutierrez said the U.S. does not want a trade war with China but simply wants as much access to Chinese markets as China has to U.S. markets. View USIS Washington File report (includes transcript of press roundtable)

Portman Praises Breakthrough on WTO Doha Agenda at APEC Ministerial

In remarks to the press on June 3, U.S. Trade Representative Rob Portman said that the U.S. is pleased with the outcome of a two-day meeting of trade ministers of the 21 member economies of the Asia-Pacific Economic Cooperation Forum (APEC), held in South Korea. The participants were able to achieve a "significant breakthrough" on an important issue of the Doha Development Agenda of the WTO, Portman said, by agreeing that the so-called "Swiss formula" should be used to calculate tariff reductions on nonagricultural products, including manufactured, marine and forest products. In addition to WTO concerns, Portman said the ministers endorsed a comprehensive "Anti-Counterfeiting and Piracy Initiative" that was sponsored by the U.S., South Korea, and Japan, which “…calls for the development of strong, region-wide measures by the end of the year to combat a growing regional challenge of trade in counterfeit and pirated goods, and online piracy.” Asked about his earlier meeting with Chinese Trade Minister Bo Xilai, Portman said he discussed a number of bilateral concerns, including U.S. concerns over Chinese textile exports, China's restrictions of U.S. beef imports, Chinese government procurement policies and other market access issues, and China's enforcement of intellectual property rights. View transcript of Portman's remarks

Bush Says CAFTA Will Strengthen Democracy

During his June 4 weekly radio address, President Bush urged Congress to ratify the Central American and Dominican Republic Free Trade Agreement (CAFTA). The President previewed his June 6 meeting with regional leaders at the General Assembly of the Organization for American States (OAS) in Fort Lauderdale, Florida, saying he "look[ed] forward to telling them that CAFTA is a good deal for workers, farmers and small businesses in the United States and throughout the hemisphere…CAFTA will make our neighborhood more secure by strengthening young democracies."

View text of President Bush’s remarks

Gutierrez Urges China To Speed Progress on Bilateral Trade Issues

Secretary of Commerce Carlos Gutierrez stated during a June 1 speech before the American Chamber of Commerce in Beijing that the government of China must speed progress on issues driving trade relations with the U.S. or risk an outbreak of protectionism that will hurt both countries' economies. Gutierrez said the absence of results in areas such as China's protection of intellectual property rights, efforts to increase regulatory transparency, and resolution of structural issues such as subsidies for state-owned enterprises "empowers those within the U.S. political system who are pushing an American retreat from the global economy." Stressing that the Bush administration opposes increased tariffs and other restrictive measures as a means of resolving trade friction, Gutierrez called for a "spirit of partnership" and cooperation. A good place to start, he suggested, is with protection of intellectual property rights (IPR). While the U.S. is "...encouraged by the attention that the Chinese leadership has given to intellectual property rights protection...promises in principle eventually need to lead to results." View USIS Washington File report (includes text of Gutierrez's remarks)

U.S. Report Says North America Moving Toward Single Trade Market

In a June 1 report, the U.S. Department of Agriculture (USDA) stated that U.S. agricultural trade with Mexico and Canada is on a "clear upward trend," resulting in the economies of the three countries "behaving as if they form one market." USDA said that trade liberalization under NAFTA is one factor behind the growing market integration of the three countries. Integration is not limited to production agriculture--North America's processed food industries are increasingly interwoven, and integration between Canadian and U.S. food processors has reached a particularly advanced stage. Similar linkages connect Mexico and the U.S., but these investment and trade flows are much smaller relative to Mexico's population. The report also examined the effects of the Security and Prosperity Partnership of North America. USDA stated that, through this agreement, the governments of North America have made a commitment to an "even more ambitious agenda of regulatory coordination, featuring common approaches to food safety, greater coordination and information-sharing among testing laboratories, and increased cooperation with respect to the regulation of agricultural biotechnologies."

View USDA report

USITC Study on Impact of FTAs Signed Under Trade Promotion Authority

On June 1, the U.S. International Trade Commission (USITC) released the results of its investigation on the impact of three trade agreements signed since 2002 under trade promotion authority (also known as "fast track authority"). The investigation, The Impact of Trade Agreements Implemented Under Trade Promotion Authority reviewed and analyzed the economic impact on the U.S. of the U.S.’s Free Trade Agreements with Australia, Chile and Singapore. USITC found that the three agreements will collectively have very little effect on the U.S. economy overall, though trade in some sectors (notably meat products and textiles and apparel) will increase substantially. However, the Commission reported that even in these sectors, the change is small relative to U.S. trade with the world and to U.S. output. View USITC press release

China Should Take Tougher Stance Against IPR Piracy, Wayne Says

Assistant Secretary of State for Business and Economic Affairs E. Anthony Wayne stated May 25 that China should take stronger action against counterfeiters and intellectual property pirates. He told the International Leadership Conference of The Executives' Club of Chicago that increased recognition, protection and enforcement of intellectual property rights (IPR) in China is important "not only to mollify foreign critics ... but for its own future growth." While noting China’s desire to move its industries “up the technological value-added ladder,” Wayne added that this industrial transformation will face barriers if Chinese holders of patents, trademarks and copyrights cannot count on their intellectual property being protected. During his remarks, Wayne also called on China to adopt a market-based exchange rate. View USIS Washington File report (includes text of Wayne’s remarks)

U.S. Envoy Comments on U.S.-Russian Economic Relations

During his keynote address at a World Pension Forum/U.S.-Russia Business Council conference in St. Petersburg, Russia on May 26, U.S. Ambassador to Russia Alexander Vershbow said that the U.S. is committed to working with the Russian government to help “create the legal and regulatory climate that would be most conducive to foreign and domestic investment.” He said that while the U.S. is committed to working with the Russian government to address such problems as excessive bureaucracy, the lack of protection for intellectual property and a general lack of transparency and rule of law, it is ultimately up to Russia itself to recognize the benefits of legal norms, international cooperation and global integration. The U.S. hopes to engage with Russia on its accession to the WTO. The ambassador stated that the U.S. sees the WTO negotiations and the Energy Dialogue as complementing one another because they support the development of a rules-based system. View USIS Washington File report (includes text of Vershbow’s remarks)