May 2005 News

Commerce Secretary Gutierrez Visits Russia and China

U.S. Secretary of Commerce Carlos M. Gutierrez will travel to St. Petersburg and Moscow, Russia, May 28 – June 1 and Beijing, China, June 2 - June 4 to promote the Bush administration’s fair trade agenda and discuss issues of ongoing concern. Gutierrez will stress the administration’s commitment to improving economic relations with the U.S.’s trading partners and outline ways that open market forces can drive commerce. In Russia, Gutierrez will meet with senior government officials to emphasize common economic interests, including Russia's accession to the WTO, developing a broader market for American goods, and strengthening protection of intellectual property rights. During his visit to Beijing, Gutierrez will urge China to deter widespread infringements of intellectual property rights through strict enforcement. Additionally, Gutierrez will have Joint Commission on Commerce and Trade (JCCT)- related discussions in advance of the upcoming JCCT in 2005.

View Commerce press release

Portman to Discuss WTO Negotiations at APEC Meeting

U.S. Trade Representative Rob Portman will join fellow trade ministers at the Asia-Pacific Economic Cooperation (APEC) meetings in Cheju, Korea on June 2-3 to advance the ongoing WTO Doha Development Agenda negotiations and pursue cooperative solutions to stop on-line piracy and trade in counterfeit and pirated goods. During the APEC meeting, Portman will also meet separately with trade ministers from some of the 20 other APEC members to discuss bilateral, regional and WTO issues. Following APEC, Portman will join Secretary of Commerce Carlos Gutierrez in Beijing on June 4 for meetings with Vice-Premier Wu Yi to discuss bilateral trade issues with China.

View USTR press release

U.S. Submits Revised Services Offer to WTO

On May 31, U.S. Trade Representative Rob Portman announced that the U.S. submitted a revised services offer aimed at securing greater economic growth and opportunities for American services industries and workers in keeping with the end of May 2005 deadline set by WTO Members. At the urging of U.S. services industries, and after consultation with Congress and state and local governments, the U.S. has offered to improve its GATS commitments in targeted services sectors. Ambassador Portman noted that these negotiations are important because in the United States, services account for approximately three quarters of GDP and 8 out of 10 jobs. The revised U.S. submission improves upon a robust set of existing commitments by including new commitments in telecommunications, computer and related services, express and other delivery services, business services, higher education, transportation (excluding air and maritime) and energy services.

View USTR press release

U.S. Takes Next Step in Airbus WTO Litigation

On May 30 USTR announced that, in light of the European Commission's unwillingness to halt new subsidies for large civil aircraft, and with EU Member States preparing to commit $1.7 billion in new risk-free launch aid subsidies for Airbus, the U.S. would file a request for the establishment of a WTO dispute settlement panel to resolve the dispute on May 31. U.S. Trade Representative Rob Portman said that the U.S. "continue(s) to prefer a negotiated solution, and we would rather not have to go back to the WTO. But the EU's insistence on moving forward with new launch aid is forcing our hand." By requesting the panel, the U.S. is providing time for the EU to reconsider its plans to provide new subsidies and recommit to the agreed January 11th U.S.-EU agreement for negotiations. The U.S. believes this dispute must be managed in a constructive manner and not be allowed to spill over into other issues.

View USTR press release

View USTR fact sheet

China Ready to Adopt Market-Based Currency Rates, U.S. Says

In a May 27 statement, USTR said that the U.S. continues to urge China to move without delay toward a more flexible, market-based exchange rate for its currency. In response to a petition for trade remedies filed under Section 301 of the Trade Act of 1974, USTR said: "[Treasury] Secretary Snow has made clear that China is now ready to move toward a flexible, market-based exchange rate and should move without delay in a manner and magnitude that is sufficiently reflective of underlying market conditions." USTR stated that, in addition to the currency issue, the U.S. continues to engage China on other important bilateral trade and economic issues, including enforcement of U.S. intellectual property rights, market access for U.S. goods and services, and concerns over unfair Chinese trading practices.

View USTR press release

Commerce Secretary Commits To Help U.S. Businesses With Visas, Releases National Export Strategy

At the May 25 meeting of the President’s Export Council, Secretary of Commerce Carlos Gutierrez committed to helping U.S. businesses get some relief from visa hurdles that they say are preventing foreign customers and employees from getting into the U.S. During the meeting, business people complained about U.S. universities losing students, hospitals losing patients and companies losing customers for lack of nonimmigrant visas. Gutierrez promised he would seek cooperation from the departments of State and Homeland Security to resolve the problems. During the council meeting, Gutierrez released the 2005 National Export Strategy, a report mandated by Congress. This year's report identifies priority foreign markets for expanding U.S. exports: Brazil, China, the European Union, India, Japan, South Korea and Russia. In other business, the council approved three letters for submission to President Bush. The first letter supports continued efforts to complete an agreement in WTO negotiations and to secure congressional passage of free-trade agreements with Bahrain and with five Central American countries and the Dominican Republic (CAFTA-DR). Another letter encourages the Bush administration to recognize and support attempts to improve corporate governance by U.S. businesses. The third letter urges the President to improve U.S. statistics on services trade.

View USIS Washington File report

U.S. Ready To Return Airbus Case to WTO

In his May 25 testimony before a House Transportation and Infrastructure subcommittee meeting, Deputy U.S. Trade Representative Peter Allgeier said the U.S. has warned that it is going to proceed “promptly” with a WTO subsidy case against the EU unless the Europeans change their position on aid for the development of new Airbus aircraft. Allgeier said that a negotiated agreement on ending so-called launch aid and other trade-distorting aircraft subsidies would be preferable to litigation. Another witness, Deputy Assistant Secretary of Commerce for Manufacturing Joseph Bogosian, gave an overview of Commerce's recent report on the U.S. civil aircraft industry and trade barriers it faces in the global marketplace, including bribery and safety and environmental certification.

View USIS Washington File report

U.S.-Central American Trade Pact Helps All Parties, Zoellick Says

View the text of an opinion/editorial column by Deputy Secretary of State Robert Zoellick on the CAFTA-DR, which appeared in the May 24 edition of The Washington Post.

CITA Will Invoke Safeguards on Chinese Textile Imports

On May 19, the Committee for the Implementation of Textile Agreements (CITA) announced affirmative decisions in four threat-based textile safeguard cases that it was enjoined from considering until April 27, 2005. CITA determined that imports of men’s and boys’ cotton and man-made fiber shirts, not knit (category 340/640), man-made fiber trousers (category 647/648), man-made fiber knit shirts and blouses (category 638/639), and combed cotton yarn (category 301) from China are threatening to disrupt the U.S. markets for those products. As a result of these determinations, CITA will be requesting consultations with the Government of China on these products and, on the date those consultations are requested, will put in place quotas that will limit the growth in imports of the covered products. Commerce Secretary Carlos Gutierrez said this “announcement demonstrates this Administration’s continued commitment to America’s textile manufacturers and their employees.” On May 5, 2005, CITA announced the resumption of consideration of the twelve requests for safeguard action based on the threat of market disruption.

View Commerce press release

Progress Reported in U.S. Trade Talks with United Arab Emirates

Catherine Novelli, assistant U.S. trade representative and the lead negotiator in the U.S.-United Arab Emirates (UAE) free trade agreement (FTA) negotiations, told reporters in a May 19 teleconference that the talks continue to make good progress. Novelli commented, "We had a very, very productive second round of negotiations," about the session held during the previous week. "We made a great deal of progress on all fronts." Novelli said that the two sides have closed certain chapters and other portions of the negotiating text but declined to elaborate. She said she expected the two sides would need to hold at least two more rounds; the next one, planned for late June or early July, will be conducted by videoconference from the two countries' capitals, she said.

View USIS Washington File report

Treasury Department Names Special Envoy to China

On May 19, Treasury Secretary John Snow announced that he is appointing Olin L. Wethington as his special envoy to China. Wethington will be responsible for direct engagement with China on issues related to exchange rate and financial market reform. Wethington will also assume the China portfolio of Ambassador Paul Speltz, who will continue his full-time position as U.S. executive director at the Asian Development Bank in Manila, Philippines. In a Treasury Department press release announcing his appointment, Wethington said he looks forward to working with Group of Seven (G7) partners to encourage China to reform its currency policy. China has maintained a fixed exchange rate of 8.28 yuan to the U.S. dollar since 1995, a practice that some say the peg undervalues the yuan and contributes to the large U.S. trade deficit with China.

U.S. Approves $215 Million Investment in Honduras To Increase Trade Capacity, Assist Rural Poor

On May 20, U.S. Trade Representative Rob Portman joined the other members of the Millenium Challenge Corporation (MCC) Board of Directors in approving a $215 million Compact with Honduras. The Compact will help Honduras maximize trade opportunities in the Central America-Dominican Republic Free Trade Agreement (CAFTA) and will improve lives of the rural poor by fostering economic growth. A recent World Bank analysis showed that the implementation of CAFTA will raise the standard of living for the vast majority of the population. When combined with investments in education, rural infrastructure and rural finance, CAFTA will offer new opportunities to the rural poor. The Honduras Compact provides significant funding for such programs. This compact augments the U.S./Central America/Dominican Republic discussion in late April on trade capacity building initiatives in support of the free trade agreement.

View USTR press release

Chinese Counterfeits Hurting Industry in China, Experts Say

Mark Cohen, the U.S. Patent and Trademark Office (PTO) attaché in Beijing, said that Chinese counterfeiters and pirates do harm in countless ways, including by holding back China's own innovators and entrepreneurs. “China has a glorious tradition of innovation that is greatly hampered by today's IP [intellectual property] environment," Cohen said. "When piracy is reduced, the experience of many countries and regions is that the principal benefactors are their own firms." U.S. officials believe that ineffective protection of intellectual property rights (IPR) hurts both countries. The gains to China from improved IPR protection could be huge. Chinese innovators filed only 1,782 international patent applications in 2004 under the Patent Cooperation Treaty (PCT) of the World Intellectual Property Organization (WIPO), yet this was an increase of 37.8 percent over the previous year and the highest rate of increase for any country, according to WIPO. But, despite ample evidence of China's creative power, most experts agree that piracy is eating away at the country's overall potential.

View USIS Washington File report

Intellectual Property Theft in Russia Increasing Dramatically

Testifying at a May 17 congressional hearing, Victoria Espinel, USTR’s principal trade negotiator on intellectual property rights (IPR) protection, said that the level of copyright piracy in Russia has increased dramatically. She added that the adverse effects on American owners of copyrights are compounded by the fact that Russia has become a major exporter of pirated material. Successfully combating the rampant piracy and counterfeiting that currently exist in Russia is "a top priority," Espinel told the committee. She said President Bush and Russian President Vladimir Putin have discussed improving protection of intellectual property in Russia at several recent summits, including their meeting in early May in Moscow. Russia is on the 2005 Special 301 Priority Watch List announced on April 29 as part of the USTR’s annual review of countries' IPR practices. Espinel outlined some of the efforts under way to improve IPR protection in Russia, including a bilateral working group with USTR and Rospatent, the Russian Federal Service for Intellectual Properties, Patents and Trademarks. The U.S. is also working on IPR issues within the context of Russia's WTO accession negotiations, she said, adding that the U.S. is “raising these and other concerns in the accession negotiations" and has "made it clear to the Russian government that progress on IPR will be necessary to complete the accession progress.”

View USIS Washington File report

U.S. Agriculture Chief Hails Benefits of Trade Liberalization

Trade liberalization agreements are producing substantial benefits for the United States and its trading partners in the Americas, says U.S. Agriculture Secretary Mike Johanns. Speaking May 13 in Mexico City, Johanns hailed the benefits that the United States, Mexico, and Canada have reaped as co-partners in the North American Free Trade Agreement (NAFTA). Since NAFTA's enactment in 1994, Johanns said, U.S. agricultural exports to Mexico have more than doubled, reaching $8.5 billion in 2004. Johanns said the example of NAFTA is why he is urging the U.S. Congress to ratify a proposed U.S. free-trade agreement with five Central American nations and the Dominican Republic, known as CAFTA-DR. Johanns said that like NAFTA, CAFTA-DR "provides for a leveling of the playing field so that the United States can compete in the important markets of Central America and the Dominican Republic."

View transcript of Johanns’ remarks

U.S. Seeks to Strengthen Partnerships in Asia-Pacific Region

The U.S. is seeking to strengthen its partnerships with nations of the Asia-Pacific region, says Evans Revere, acting assistant secretary of state for East Asian and Pacific affairs. During a May 17 conference in Washington hosted by the Korean daily newspaper Chosun Ilbo and the Center for Strategic and International Studies, Revere said the U.S. believes that "the strategic and economic geography through which Asians can best build on their success is via trans-Pacific partnerships and institutions." Noting that three of the U.S.’s top ten trading partners (China, Japan and South Korea) are in the region, Revere stated, "Enhancing our economic, trade and investment relations -- a two-way street, I would emphasize -- is one of the most promising means for encouraging further positive growth and development, and for bringing out the best in our relationships in the region." Regarding China, Revere said the U.S. wants "a confident and prosperous China that can play a constructive role in the world." He added, "But we also expect a rising China to rise … to its global responsibilities -- and to show it is doing so through its actions."

View USIS Washington File report

State's Wayne Sees Economic Growth Potential in Middle East

At a trade and investment conference in Amman, Jordan, on May 18, Assistant Secretary of State E. Anthony Wayne stated that, given the proper economic environment, the wealth of human and productive resources in the countries of the Middle East and North Africa could generate dramatic economic growth over the next decade. Wayne said the private sector should be the primary engine of economic growth, but he noted that private sector investment, as a proportion of total economic investment in the Middle East and North Africa, is little more than half of what it is in North America, Europe and East Asia. Wayne said the governments of the region must create a more attractive environment for investment by ensuring legal and regulatory transparency, enforcing the rule of law, protecting property rights, strengthening the financial sector, and privatizing inefficient public enterprises. Wayne also spoke about the power of trade to build cooperation between countries, strengthen the rule of law and encourage peaceful conflict resolution. View USIS Washington File report (includes text of Wayne’s remarks)

USTR's Allgeier Promotes WTO as House Prepares to Vote

During his May 17 testimony to the House Ways and Means Trade subcommittee, Deputy U.S. Trade Representative Peter Allgeier defended continued U.S. participation in the WTO, stating that U.S. leadership in the global trading system is critical for continuing U.S. prosperity and securing world stability. Allgeier said, "Simply put, the WTO exists as the most important vehicle to advance U.S. trade interests and is critical to America's workers, businesses, farmers and ranchers.” At issue was a bill submitted by WTO opponents calling for U.S. withdrawal from WTO membership. Under the 1994 law approving U.S. participation in the then just-forming trade organization, the Office of the U.S. Trade Representative (USTR) must report to Congress once every five years a detailed analysis of U.S. participation’s costs and benefits. Supporters of withdrawal argue that WTO membership amounts to a surrender of U.S. sovereignty to an international organization.

View USIS Washington File report

View transcript of Allgeier’s testimony

U.S. Gives More Money to Assist Developing Countries at WTO

In a May 17 press release, USTR announced that the U.S. has contributed nearly $1 million more to providing technical assistance to developing countries participating in WTO negotiations. This latest contribution brings the level of such U.S. assistance to nearly $5 million since the November 2001 launch of the Doha round of WTO negotiations. View USIS Washington File report (includes text of USTR press release)

Bush Announces Top Priorities on U.S. Trade Agenda

In his May 17 remarks at the ceremonial swearing in of U.S. Trade Representative Robert Portman, President Bush stated that passing the Central American and Dominican Republic Free Trade Agreement (CAFTA-DR), completing the WTO Doha Development Agenda negotiations, and enforcing trade agreements (specifically citing agreements with China) are the U.S.'s top trade priorities. Regarding CAFTA-DR, the President said the agreement provides an historic opportunity to advance the common goals of prosperity and peace in Central America. Mr. Bush said that the WTO Doha Development Agenda framework would reduce and eliminate tariffs in key industry sectors, and unfair agricultural subsidies, and open the global market in services. The President cited a number of issues, including piracy of U.S. intellectual property and barriers to goods and services, where China still must meet existing WTO commitments. View remarks of President Bush and U.S. Trade Representative Portman

China Must Change Currency System, U.S. Treasury Report Says

In its semiannual Report to Congress on International Economic and Exchange Rate Policies May 2005, the Treasury Department stated that China's currency policies "are highly distortionary and pose a risk to China's economy, its trading partners and global economic growth." The department added, "If current trends continue without substantial alteration, China's policies will likely meet the technical requirements of the statute for designation." Commenting on the report, Treasury Secretary John Snow said, "Our engagement with China over the past two years... leaves me with little doubt that China is now prepared to begin reform of the currency regime." Chinese officials have pledged to adopt a more flexible currency, but say they need time to prepare their financial system for the adjustment. Some members of Congress, in reaction to what they believe is China's undue delay in moving to a more flexible rate, have introduced bills to impose sanctions on Chinese imports. View USIS Washington File report

Trade Accords Can Boost U.S. Logistic Services, USITC Report Says

According to a U.S. International Trade Commission (USITC) report, multilateral and bilateral trade agreements can remove some of the barriers U.S.-based logistic service providers face in foreign markets. In a May 16 news release announcing its publication, Logistic Services: An Overview of the Global Market and Potential Effects of Removing Trade Impediments. USITC notes that in recent years impediments in some logistic-related sectors have been reduced as a result of unilateral deregulation or multilateral trade agreements. The report concludes that some of the remaining barriers can be further lowered through multilateral trade negotiations and bilateral free-trade agreements, and that the latter provide the greatest benefit to logistic service firms. The commission identifies border clearance procedures as the greatest barriers and Australia, Indonesia, Malaysia, the Philippines, South Korea and Vietnam as countries where those impediments constitute the biggest problem for U.S.-based logistic service providers.

View USITC press release

CITA Will Invoke Safeguards on Chinese Textile Imports

On May 13, the Committee for the Implementation of Textile Agreements (CITA) announced affirmative decisions in three self-initiated textile safeguard cases that were instituted in April 2005. The 30 day comment period for these self-initiated cases ended on Monday, May 9. CITA determined that the U.S. market for cotton knit shirts and blouses (Category 338/339), cotton trousers (Category 347/348), and cotton and man-made fiber underwear (Category 352/652) is being disrupted and that there is a threat of further disruption. CITA further determined that imports in these categories from China play a significant role in the existence and threat of market disruption, and that this situation threatens to impede the orderly development of trade in these products. Commerce Secretary Carlos Gutierrez stated, “Today’s action by CITA demonstrates this Administration’s commitment to leveling the playing field for U.S. industry by enforcing our trade agreements. We will consult with the Chinese to find a solution that will permit the orderly development of trade in a quota free environment.” CITA will request consultations with China by the end of May with a view to easing or avoiding market disruption. CITA, which is chaired by the Commerce Department's Deputy Assistant Secretary for Textiles and Apparel, is comprised of the Departments of Commerce, State, Labor, Treasury, and USTR. For more information, please visit: http://otexa.ita.doc.gov

View Commerce press release

U.S. Combats Use of Standards as Trade Barriers, Urges China to Join WTO Government Procurement Agreement

In testimony delivered May 13 to the House Committee on Government Reform, Assistant Secretary of Commerce for Technology Policy Benjamin Wu said that the U.S. is fighting the use of standards and technical regulations as a form of trade barriers. Wu said the Department of Commerce is working to ensure that standards are "fair and responsive to market and technology needs," and that the U.S. government and American industries cooperate "to combat standards as trade barriers to American goods and services." Although U.S. standards concerns are not specific to China, that nation has received special attention in the area of software procurement, Wu said. China's pending software procurement regulation could limit the ability of U.S. industry to sell software products and services to the Chinese government, he stated. Wu predicted that if the Chinese government adopts the restrictive standards it has proposed, it will undermine its own objective of encouraging the development of a domestic software industry. In his testimony before the committee, Assistant U. S. Trade Representative (USTR) Charles Freeman said that the U.S. is urging China to initiate negotiations as soon as possible to join the WTO Government Procurement Agreement. Freeman said the U.S. is concerned about language in China's proposed implementing regulations for the procurement of computer software by government offices. View USIS Washington File report (includes text of Wu's remarks) View USIS Washington File report (includes text of Freeman's remarks)

Global Trade Facilitation, Security Standards Published

The World Customs Organization (WCO) has released the final draft of standards designed to facilitate global trade and secure it against terrorism and other crimes. In a May 12 news release, WCO said that the draft framework approved by its high-level group contains 17 standards. Essential principles of the framework include harmonized advance electronic manifest information requirements on inbound, outbound and transit shipments; consistent risk management approaches to address terrorism and other security threats; and customs privileges for businesses that meet minimal supply-chain security standards and best practices, according to a March article published on the U.S. Customs and Border Protection (CBP) Internet site. CBP Commissioner Robert Bonner said that the possibility of terrorist attacks against trade lanes is very real. WCO said its council will consider adoption of the framework in June. View USIS Washington File report

Commerce Secretary Says CAFTA Will Spur Development, Democracy

During a May 12 interactive forum, Commerce Secretary Carlos Gutierrez said that the proposed free-trade agreement between the U.S., the nations of Central America and the Dominican Republic (CAFTA-DR) would help consolidate democratic reforms in many of the signatory countries while also boosting economic growth for all parties. The Secretary cited a U.S. Chamber of Commerce prediction that U.S. sales to the region could expand by more than $3 billion in the first year of CAFTA's implementation, adding that the American Farm Bureau estimated U.S. farm exports could grow by $1.5 billion a year. Gutierrez stated, "Preserving trade opportunities for America's small business owners and entrepreneurs requires open markets. CAFTA is critical to remaining competitive around the world."

View USIS Washington File report

View transcript of forum

Bush Calls for Passage of U.S.-Central American Trade Pact

After his May 12 meeting with the presidents of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua, President Bush stated that the U.S.-Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) is the best way to achieve peace and prosperity for the Western hemisphere. “By passing CAFTA, we would open up a market of 44 million consumers who already import more of our goods and services than Australia or Brazil,” President Bush stated. During their visit to Washington, the Central American presidents met with U.S. legislators to gather support for passage of the free-trade legislation.

View text of President Bush’s remarks on CAFTA

Zoellick Says Reforms Could Expand U.S.-Vietnam Trade, Investment

At a May 6 press conference in Hanoi, Deputy Secretary of State Robert Zoellick said that, since the U.S.-Vietnam Bilateral Trade Agreement (BTA) took effect in December 2001, trade between the two countries has expanded considerably. Zoellick stated that U.S. exports to Vietnam stand at about $1.3 billion per year, while U.S. investment in Vietnam has also increased. He said the U.S. is working with Vietnam "to create a better environment to draw investment" -- noting that there are still issues to work out relating to regulation, rule of law and corruption. According to Zoellick, one of the key items affecting investment in Vietnam's high-tech sector is IPR protection. If Vietnam undertakes the legal reforms necessary to secure membership in the WTO, it could attract even more trade and investment, Zoellick added. View USIS Washington File report (includes transcript of press conference)

National Council of Textile Organizations Expresses Support for CAFTA-DR

View the text of U.S. Trade Representative Rob Portman’s statement commending the National Council of Textile Organizations for their support for the Central American – Dominican Republic Free Trade Agreement (CAFTA-DR).

China: Major Impediments Still Exist for Foreign Services Providers

According to a USIS Washington File report, market access for foreign services providers remains restricted in many sectors in China. China continues to fear that foreign firms will dominate its growing domestic market in areas such as banking, insurance and telecommunications, industry experts say. U.S. Government and industry officials say they are concerned that China is looking for loopholes in its WTO commitments in order to delay granting market access to foreign firms. This is a problem not only for foreign providers, but also for Chinese consumers, experts say, because domestic providers cannot meet the increasing demand for services. Services currently account for over 60 percent of global production and employment and about 20 percent of global trade. However, given the tremendous growth of trade and rising incomes in China, U.S. officials and industry experts say that the levels of services trade in the country could be much greater. Should China continue to frustrate the intent of its WTO services commitments, the U.S. and other countries whose industries have strong services sectors can file a WTO complaint. However, to date U.S. and industry officials have relied on bilateral talks to resolve outstanding services issues, although recourse to the WTO has been made on other U.S.-China trade issues.

View USIS Washington File report

U.S., Thailand To Hold Fourth Round of Trade Talks in July

While visiting Thailand, Deputy Secretary of State Robert Zoellick announced that U.S. and Thai officials will meet in Montana in July for their fourth round of free trade agreement (FTA) negotiations. Zoellick met with Thai parliamentarians May 4 to address their concerns about the FTA negotiations. Zoellick said he responded to Thai concerns about U.S. agricultural subsidies by noting that U.S. subsidies -- unlike those in the European Union -- apply only to certain "row crops," such as cotton, and by explaining "how the United States is willing to have very substantial reductions." When asked about the progress of the Enterprise for ASEAN Initiative (EAI), the deputy secretary said the U.S. was working bilaterally with individual ASEAN member nations. In particular, Zoellick cited U.S. efforts with Vietnam and Laos to help those nations get WTO membership and highlighted Cambodia's WTO membership in 2003. View USIS Washington File report (includes transcript of press roundtable)

U.S. Welcomes Pakistani Efforts To Protect Intellectual Property

Deputy U.S. Trade Representative Josette Sheeran Shiner has welcomed Pakistan’s recent efforts to strengthen its protection of intellectual property rights through administrative reform and aggressive enforcement. Pakistan has created a central government agency, the Pakistan Intellectual Property Rights Organization (PIPRO), to oversee copyright, trademark and patent protection issues. In addition, Pakistan’s Federal Investigation Agency this week made nine arrests; seized over 100,000 pirated CDs, videos and cassettes; and shut down six illegal duplication facilities. View USIS Washington File report (includes text of Shiner statement)

U.S. Trade Representative Portman’s Remarks on WTO Doha Negotiations

On May 5, U.S. Trade Representative Rob Portman commented on progress made in WTO Doha Development Agenda negotiations in Paris, where the EU's offer on agricultural tariff revenues has reportedly revived prospects for the Doha talks.

OECD Ministers See Global Expansion Resuming, Note Oil Risks

Ministers from 30 large industrialized countries have agreed that global economic expansion should regain momentum later in 2005, but have cautioned about the effect of high oil prices, according to the chairman's summary of the meeting. The May 3-4 meeting of Organization for Economic Cooperation and Development (OECD) member ministers in Paris produced a chairman's summary rather than a communiqué, suggesting at least some areas of disagreement among members. The chairman's statement also cited global economic risks from OECD members' trade imbalances, fiscal deficits and possibly excessively high prices in some asset markets but did not elaborate. "While the imbalances may well unwind smoothly, including via some exchange rate adjustments," it said, "some turbulence cannot be ruled out." On the margin of the meeting a number of trade ministers from OECD and key non-OECD countries were gathering to try to advance WTO negotiations. The OECD chairman's summary urged participants to work toward ambitious results at the December WTO ministers' meeting in Hong Kong. View USIS Washington File report (includes text of summary)

U.S. Commerce Secretary Outlines Economic Agenda for the Americas

During May 3 remarks to the Council of the Americas conference in Washington, Secretary of Commerce Carlos M. Gutierrez stated that expansion of economic opportunity is one of the Bush administration's top goals for the Western Hemisphere. He added that the U.S. economic agenda for the region is advancing on a number of fronts, including an effort to enact the U.S.-Central American Free Trade Agreement (CAFTA). Regarding CAFTA, the Secretary said the agreement “…is strongly in the long-term best interests of every person in our hemisphere." Gutierrez said that free trade will curb corruption by introducing greater accountability, alleviate income inequality and strengthen democracy in the CAFTA signatory countries. This expansion of freedom and economic progress, he argued, will make it easier to achieve regional security goals. View USIS Washington File report (includes text of Gutierrez’s remarks)

President Bush to Welcome Central American, Dominican Republic Presidents

On May 2, the White House announced President Bush will welcome the presidents of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua to the White House for a meeting on May 12, 2005. The President looks forward to discussing with his counterparts the Central American and Dominican Republic Free Trade Agreement (CAFTA-DR), as well as efforts to advance our common goal of a more democratic and prosperous Western Hemisphere.

View White House press release

USTR Portman to Attend Key Trade Meetings in Paris May 2-4

After his confirmation by the U.S. Senate on April 29, U.S. Trade Representative Rob Portman traveled to Paris to attend the OECD Ministerial and related meetings to advance ongoing WTO negotiations as they enter a critical preparatory phase on the road to the WTO Ministerial in Hong Kong in December. Regarding the WTO, Portman stated, "The Doha negotiations are hitting a critical phase, and negotiations are lagging…We must re-energize and sharpen the focus of the negotiations, while keeping ambition high." In particular, Ambassador Portman noted his concern with the progress of the agriculture negotiations, specifically the technical work needed to begin tariff negotiations. Specifically, Portman called on all countries to resolve this issue as soon as possible so that the agricultural market access negotiations can proceed.

View USTR press release

State's Wayne Urges Reducing U.S.-EU Trade Barriers

In his remarks to the seventh annual Transatlantic Consumer Dialogue Conference in Washington, D.C., Assistant Secretary of State for Economic and Business Affairs E. Anthony Wayne said that reducing barriers to trade and investment and preventing the creation of new ones could raise living standards around the world. Wayne stated that “divergences in regulatory approaches – unless based on sound reasons – can impose large costs with little or no benefits.” Wayne outlined some of the recommendations by stakeholders to be discussed at the conference, including greater U.S.-EU cooperation on transportation system security, less burdensome regulatory regimes, and a transatlantic capital market. View USIS Washington File report (includes text of Wayne’s remarks)

CAFTA-DR is a Top U.S. Priority, Rice Declares

During joint remarks with President Antonia Saca of El Salvador on April 29, Secretary of State Condoleeza Rice said that the Bush Administration will work closely with governments in the region to win congressional approval of the Central American Free Trade Agreement (CAFTA-DR). President Saca said that ratification would open up opportunities for employment and direct investment in a region that is both stable and democratic. In response to a question about agricultural subsidies, Rice pointed out that when there is a genuine international solution, the U.S. will eliminate such subsidies. The U.S. does not support such subsidies, she said, but "we do not intend to disadvantage American farmers vis-à-vis other farmers, particularly those who are participating in the WTO." Nevertheless, the Secretary observed, agricultural issues have not prevented the U.S. from reaching free-trade agreements with Chile, Australia, countries in the Middle East -- and now with Central America. View USIS Washington File report (includes transcript of remarks by Saca and Rice)