November 2005 News

U.S and EU Make Progress on Transatlantic Economic Integration

Secretary of Commerce Carlos Gutierrez headed the U.S. delegation to the first informal EU-U.S. economic ministerial meeting in Brussels on November 30, where the parties discussed transatlantic economic integration and shared economic challenges. Under Secretary of Commerce for International Trade Franklin Lavin was also a member of the U.S. delegation. Senior Ministers and Commissioners welcomed both sides’ agreement to concrete action plans and timelines to tackle the most significant issues in the transatlantic economy, including Intellectual Property Rights (IPR), regulatory cooperation, trade and security and improving innovation. Regarding IPR, the parties agreed on an IPR enforcement cooperation strategy for the 2006 EU-US Summit and to establish a working group which will begin work by the end of January 2006. The participants also discussed a range of other critical economic issues, including maintaining competitiveness in a changing global economy, spurring economic growth in developing economies, and energy efficiency and alternative technologies. With the December WTO Ministerial in Hong Kong approaching, the participants underscored the importance of making significant progress in advancing the Doha Development Agenda negotiations.

View Commerce Department press release

U.S. and EU Reach Agreement on Enlargement Compensation Package

On November 30, U.S. Trade Representative Rob Portman announced that the United States reached a trade agreement with the European Union (EU) regarding the EU's May 2004 expansion. The agreement consists of a comprehensive package of EU trade concessions to compensate the United States for tariff increases that the EU implemented as a result of that expansion. It also reduces several EU tariffs and expands a number of EU tariff rate quotas and will enhance and strengthen market access opportunities for U.S exports to the EU market for a broad range of agriculture and several industrial goods. Negotiated under GATT rules, the agreement is subject to approval by the EU Member States and is expected to go into effect during 2006. The agreement will be signed once the EU Member states approve the agreement. Ambassador Portman also thanked the U.S. Department of Agriculture and the U.S. Department of Commerce for their assistance in the negotiations.

View USTR press release

United States Congratulates Gurria on Selection as OECD Head

The United States congratulated former Mexican Finance Minister Jose Angel Gurria on his appointment November 30 as the next secretary-general of the Organization for Economic Cooperation and Development (OECD). State Department spokesman Sean McCormack said Gurria's selection “comes at a crucial time for the organization as it helps its members and others grapple with the challenging economic issues of the 21st century.� He said in a prepared statement that Gurria “brings a progressive vision and firm leadership to the organization. We look forward to working with him and all members to expand global economic growth and stability.� Gurria is to assume his new post on June 1, 2006, succeeding Canadian Donald J. Johnston, who is retiring after 10 years.

View USIS Washington File report

U.S. Works To Advance Doha Trade Round, Official Tells Africans

William Jackson, USTR’s director for African affairs, told attendees at an African Union ministerial meeting on WTO issues in Tanzania on November 23 that there is no disagreement between African nations and the United States on the need to end trade policies that hinder economic growth in less-developed countries. Regarding Africa, Jackson said, "Perhaps no other region of the world has more to gain from a successful Doha outcome, or more to lose if the round fails to produce an ambitious result." He stated that it was in the interest of all WTO members -- European, American and developing world -- "to help break the current impasse in the agricultural negotiations." Jackson warned that failure to make progress in Hong Kong would be a "major setback" to the shared objectives of opening global markets, boosting to the world economy and extending the benefits of trade to poor countries.

View USIS Washington File report

Treasury Department Hails Improvements in China's Exchange Rate

In a November 28 press release, Treasury Secretary John Snow said that, in recent months, China has demonstrated greater exchange rate flexibility by adopting a new exchange-rate mechanism and no longer is considered a currency manipulator. He added, however, that China must do even more to develop open capital markets "as quickly as possible." The Treasury Department also found that Malaysia continues to maintain a "rigid" exchange rate, despite adjusting its rate mechanism in July, Snow said. But, he stated, Treasury judged no major U.S. trading partner nation as a currency manipulator. This finding, the report said, is consistent with findings over the past 11 years of reporting. Snow said achieving adjustments in global economic imbalances is a "shared responsibility" of all countries involving increased savings in the United States, including the reduction of fiscal deficits, boosting the growth rates of major trading partners, as well as achieving greater exchange rate flexibility.

View Treasury Department press release

United States Wins WTO Challenge Against Mexican Rice Duties and Trade Laws

On November 29, U.S. Trade Representative Rob Portman announced that the WTO Appellate Body has found in favor of the United States in a challenge of Mexico’s antidumping duties on U.S. long grain white rice and several provisions of Mexico’s trade laws. In its report, the Appellate Body upheld an earlier WTO panel’s finding that Mexico’s antidumping duties and various provisions of its antidumping and countervailing duty laws are contrary to WTO rules. Mexico is an important and growing export market for U.S. rice farmers. In 2004, Mexico imported approximately $183 million of rice from the United States.

View USTR press release

View WTO Appellate Body report

Lavin Statement on CITA Decision Regarding China Textiles Safeguard Action Request

In a November 23 statement, Under Secretary of Commerce for International Trade Franklin L. Lavin commented on the decision by the Committee for the Implementation of Textile Agreements (CITA) to end further consideration of 24 requests for safeguard action on imports from China. He stated that, because the United States announced a broad textiles trade agreement with China on November 8, “CITA has ended further consideration of all pending textile safeguard petitions."

View Commerce press release

View CITA decision fact sheet

United States, European Community Sign Interim Wine Agreement

The United States and European Community (EC) signed an interim agreement November 23 aimed at ensuring that trans-Atlantic trade in wine will not be disrupted before a broader wine agreement reached in September takes effect. Under the interim agreement, the United States and the EC will continue to accept each other’s wine-making practices, and EC wine can be sent to the United States without a certification attesting that the wine is made in accordance with U.S. wine-making practices.

View USIS Washington File report

U.S., India To Hold Dialogue on Boosting High-Tech Trade

Top U.S. and Indian government officials and high-technology industry leaders will discuss strategies aimed at increasing bilateral trade in defense technology, information technology, biotechnology and nanotechnology during a two-day meeting of the High-Tech Cooperation Group (HTCG) in New Delhi on November 30 and December 1.

View USIS Washington File report

U.S. Wants WTO Ministerial Meeting After Session in Hong Kong

U.S. Trade Representative Rob Portman is urging countries to advance the long-stalled World Trade Organization (WTO) negotiations at the December Hong Kong ministerial meeting and asserted that trade ministers should meet again soon after to keep the negotiations on track.

View USIS Washington File report

Bush, Chinese President Discuss Trade Issues at Beijing Meeting

Trade and economic issues were among the topics discussed during a meeting between President Bush and Chinese President Hu Jintao November 20. During a joint press conference, Bush and Hu agreed that a system of free and fair trade benefits both the United States and China. The two leaders stressed the importance of building consensus on market access issues at the December WTO Ministerial Conference in Hong Kong in order to enable the Doha Development Agenda negotiations to move forward sufficiently to permit agreement in 2006. China also pledged to intensify its efforts to protect intellectual property rights and to work out mechanisms to implement a flexible market-based system for its currency exchange rate.

View USIS Washington File report

United States and China Must Intensify Joint Fight Against Piracy

In remarks to the U.S. Chamber of Commerce in Beijing on November 19, U.S. Attorney General Alberto Gonzales stated that the United States and China must increase their cooperation and prosecute international piracy cases in order to counter the growing rise of intellectual property theft. The attorney general called for an increase in the number of joint U.S.-China law enforcement operations to counter the piracy of intellectual property. Intellectual property piracy costs businesses billons of dollars every year and causes significant harm to the economies of both the United States and China, Gonzales said. He cited recent U.S.-China successes against several intellectual property piracy networks, including a pirated DVD-trafficking operation and a counterfeit pharmaceutical-distribution ring, but urged Chinese law enforcement officials to devote more resources to combat intellectual property theft.

View transcript of Gonzales' remarks

Trade Advisory Committees Broadly Back U.S.-Oman Free Trade Pact

In a November 18 press release, U.S. Trade Representative Rob Portman said that reports from 27 trade advisory committees, submitted to the President and Congress, show widespread support for the recently completed U.S.-Oman Free Trade Agreement (FTA). Portman called the pact “an important stride towards President Bush's vision for a U.S.- Middle East Free Trade Agreement." Oman is the fifth Middle Eastern country to have negotiated an FTA with the United States. The Bahrain pact awaits congressional action, possibly later in 2005.

View USTR press release

President Submits U.S.-Bahrain Trade Pact Legislation to Congress

On November 17, President Bush transmitted legislation and supporting documents to Congress in order to implement the U.S.-Bahrain Free Trade Agreement. The U.S. and Bahrain governments signed the agreement on September 14, 2004; the implementing legislation must be approved by the U.S. Congress before the agreement can enter into force. The President stated, “This Agreement enhances our bilateral relationship with a strategic friend and ally in the Middle East region and will promote economic growth and prosperity in both nations.� Bahrain is the fourth country in the Middle East to sign a free-trade agreement with the United States. The Bush administration seeks to use free-trade agreements with individual Middle Eastern countries to build a Middle Eastern Free Trade Area by 2013.

View text of President's message to Congress

APEC Backs Completion of WTO Trade Round

The 17th Annual Ministerial Meeting of foreign and economic/trade ministers from the member economies of the Asia-Pacific Economic Cooperation (APEC) forum concluded November 16 with the release of a comprehensive joint statement on a range of issues including trade and economics, security and public health. In their statement, the ministers particularly stressed the importance of reaching a successful completion to the WTO Doha negotiations by the end of 2006. APEC foreign ministers called for "significant progress" and the development of a "clear roadmap" for settling unresolved issues at the Hong Kong Ministerial Conference in December. The joint statement reiterated the ministers' commitment to achieving core goals set at APEC's 1994 Economic Leaders' Meeting in Bogor, Indonesia, where APEC leaders agreed to establish "free and open trade and investment" in the Asia-Pacific region for developed members by 2010 and for developing members by 2020. According to the joint statement, the ministers endorsed a mid-term "stocktake" report which encourages the formation of regional trade agreements and free trade agreements. It urges APEC members to increase cooperation in the areas of intellectual property rights (IPR) protection and enforcement, trade and investment facilitation and liberalization, anti-corruption and transparency and secure trade.

View USIS Washington File report

View joint statement

USITC Releases Study on Export Opportunities and Barriers in AGOA Countries

On November 16, the U.S. International Trade Commission (USITC) released its report examining the export potential of, and trade barriers faced by, sub-Saharan African countries eligible for trade preferences under the African Growth and Opportunity Act (AGOA). As requested by USTR, the Commission’s study is limited to the 37 AGOA-eligible countries in sub-Saharan Africa. The report identifies, for each AGOA-eligible country, the major economic sectors with the greatest potential for growth in export sales and domestic and international barriers that impede trade growth in such sectors. USITC research in selected AGOA-eligible countries cited domestic impediments as the major barriers to increased exports.

View USITC press release

Portman Says Time Still Remains for WTO Negotiations to Succeed

U.S. Trade Representative Rob Portman told reporters on November 16 that the United States has not abandoned hope that long-stalled WTO negotiations can succeed because member countries agree on the importance of achieving success. He rebutted suggestions that, a few weeks before a crucial WTO ministerial meeting in Hong Kong, the negotiations seem bound to fail. Portman reiterated that the EU has not been willing to agree to real changes in agricultural market access, and noted that trading partners outside the EU also are resisting lower agricultural tariffs, notably the G-10 group of agriculture-importing countries, which includes APEC members Japan, Korea and Taiwan. "I believe that if we can solve the agriculture issues, the other pieces will begin to fall in place fairly quickly," Portman said. "But I also understand the EU’s concern that if they agree to provide real market access to their markets and a framework for the global markets, then they need to know that there will also be for their economy reductions in industrial tariffs and reductions in barriers to services."

View transcript of Portman's media availability

Developing Countries Urged To Open Financial Markets Through WTO

During recent testimony before a House of Representatives Financial Services subcommittee, Bush administration officials say that more prosperous developing countries have failed so far to submit adequate offers in WTO negotiations for opening their markets to financial services. Of the 148 WTO members, 69 have submitted initial offers, but "the quality of offers in emerging markets of greatest interest is still poor," said Christine Bliss, acting assistant U.S. trade representative for services and investment. According to Bliss, the United States wants from the WTO financial services negotiations increased market access for U.S. suppliers coupled with transparency in the development and application of laws and regulations for banking, securities, asset management, pension funds and financial advisory services. Also testifying was Clay Lowery, assistant secretary of Treasury for international affairs, who argued that opening financial markets also would promote financial stability among developing countries.

View testimony of Christine Bliss

View testimony of Clay Lowery

Commission Offers Recommendations on China Policy

In its 2005 annual report to Congress, the U.S.-China Economic and Security Review Commission (USCC) noted that the United States and China have a growing number of economic and security issues that "need work" to reach solutions and pragmatic answers. The report recommends a number of "course corrections" in U.S. policy to prevent or reduce problems, including: addressing China's currency manipulation; challenging China's intellectual property rights (IPR) violations; and developing a national strategy for technology competitiveness. In a statement to the press upon the release of the report, C. Richard D'Amato, the USCC's chairman, said the commission’s "greatest concern is that the United States has not developed a fundamental assessment of how American national interests are affected by our relationship with China."

View USIS Washington File report

View text of report

WTO Panel Report Affirms U.S. Determination Regarding Canadian Lumber

On November 15, a WTO dispute settlement panel rejected a Canadian challenge to a U.S. determination that Canadian lumber is threatening to injure the U.S. lumber industry. The panel found that the United States did not breach WTO rules when the U.S. International Trade Commission determined that the U.S. lumber industry is threatened with material injury by reason of dumped and subsidized imports from Canada. U.S. Trade Representative Rob Portman said the report was an important affirmation that the United States applies its trade remedy laws in a WTO-consistent manner.

View WTO panel report

Commerce Deputy Secretary Sampson Visits China

Deputy Secretary of Commerce David Sampson traveled to Beijing, Shenzhen and Guangzhou, China November 11-16 to participate in the China-U.S. Summit and meet with high-level Chinese government officials, including Vice Minister Ma Xiuhong. During his trip, he promoted the Bush administration’s fair trade agenda and discussed issues of ongoing concern. He stressed the administration’s commitment to improving economic relations with China and outlined ways that open market forces can drive commerce. In 2004, U.S. exports to China grew over 22 percent to $34.7 billion. China is the United States’ fifth largest trading partner. U.S. companies with a marketing presence in Shanghai or Beijing can expand their distribution networks to additional cities under the recently announced American Trading Centers Initiative. In this program, American companies have exclusive access to a network of 14 regional offices in China, operated by the Commerce Department’s U.S. Commercial Service and the China Council for the Promotion of International Trade. Services include providing the latest in market intelligence, scheduling individual appointments with potential agents and distributors, organizing translation services, hotel rooms, and local transportation. For more information on business opportunities in China, visit the China Business Information Center.

View Commerce press release

President Calls for Successful Outcome to Doha Round

View the text of President Bush’s November 14 statement calling for a successful outcome for the Doha Round of WTO trade negotiations. To give impetus to Doha, Mr. Bush called for the reduction and then elimination of trade-distorting agricultural subsidies and tariffs. He said that if the EU offers similar real cuts to farm subsidies and tariffs, others will also have to come forward with significant proposals to cut tariffs and reduce barriers on manufactured goods and services.

CITA Extends China Safeguard Decisions

On November 10, 2005, the Committee for the Implementation of Textile Agreements (CITA), which is chaired by the Department of Commerce, announced its decision to extend until November 30, 2005, the period for making determinations on imports of women's and girls' cotton and man-made fiber shirts and blouses, not-knit (category 341/641); cotton and man-made fiber skirts (category 342/642); cotton and man-made fiber nightwear and pajamas (category 351/651); and cotton and man-made fiber swimwear (category 359-S/659-S). CITA is currently evaluating the implications of the new U.S.-China textile agreement, announced November 8, on the pending safeguard requests.

View Commerce press release

China: Portman Keynotes Speech on U.S.-China Relations

On November 14, U.S. Trade Representative Rob Portman delivered the keynote speech at a conference in Beijing hosted by President George H.W. Bush. In his speech, Portman underscored the importance of active Chinese participation in the WTO Doha trade negotiations and addressed the U.S.-China bilateral trade relationship. While in Beijing, Portman met with Chinese Minister of Commerce Bo Xilai and the National People’s Congress Economy and Finance Committee Chairman Shi Guangsheng.

View transcript of Portman's media availability

U.S. and India Agree on Steps to Promote Greater Trade and Investment Flows

On November 12, U.S. Trade Representative Rob Portman and Indian Minister of Commerce and Industry Shri Kamal Nath co-chaired the inaugural session of the U.S.-India Trade Policy Forum in New Delhi, India. The Forum meeting was preceded on November 11 by a full day of intensive consultations between senior officials drawn from concerned departments from the two countries. The Forum, which was announced during the visit to the U.S. in July of this year by Indian Prime Minister Dr. Manmohan Singh, is designed to expand bilateral trade and investment. Multilateral issues, such as the ongoing WTO Doha negotiations, also were featured in the Forum. Concerning the Doha Round, both sides expressed the hope that the wide gaps in the negotiating positions of WTO Members can be narrowed. The Trade Policy Forum will be part of the overall India-U.S. Economic Dialogue. The parties agreed on a series of next steps with a view to facilitating and promoting bilateral trade and investment, and agreed to establish several focus groups that will meet on a regular basis. The next meeting of the Trade Policy Forum will take place in 2006 in Washington, D.C.

View USTR press release

WTO: General Council Successfully Adopts Saudi Arabia’s Terms of Accession

On November 11, the WTO General Council formally concluded negotiations with Saudi Arabia on the terms of the country’s WTO membership. The General Council Chairman, Ambassador Amina Mohamed of Kenya, said “Members have taken not only a major step towards better international economic cooperation but they have also allowed the WTO to become more universal.” Director-General Pascal Lamy said that “Saudi Arabia is on its way to becoming the WTO's 149th Member, paving the way for a stronger multilateral trading system.”

View WTO press release

Commerce Department Launches China IPR Advisory Program

On November 10, U.S Commerce Secretary Carlos M. Gutierrez announced a new China Intellectual Property Rights Advisory Program that will allow U.S. small and medium-sized enterprises (SMEs) to request free consultations with an experienced volunteer attorney to learn how to protect and enforce their intellectual property rights in China. Gutierrez announced the new program, developed in coordination with the American Bar Association, the National Association of Manufacturers, and the American Chamber of Commerce in China, during remarks delivered to the U.S. Chamber of Commerce Anti-Counterfeiting and Piracy Summit. In addition to providing U.S. businesses with free, expert guidance on how to protect their intellectual property in China, this program also seeks to: help American businesses understand the steps they must take to develop an intellectual property protection strategy for the Chinese market; help U.S. companies facing China-related IPR disputes pursue resolution to their problems; and reinforce the message that it is essential for U.S. companies to take action to protect and enforce their IPR in accordance with China ’s laws, and that failing to act can have devastating consequences for future business. This program builds on the initiatives Gutierrez announced on September 21, 2005 that also strengthen global IPR protection and enforcement.

View Commerce press release

U.S. Official Urges EU to Improve WTO Farm Tariffs Offer

In a letter published by the November 10 edition of the Financial Times of London, U.S. Under Secretary of State for Economic, Business and Agricultural Affairs Josette Shiner urged the EU to make an agricultural tariff offer in keeping with the ambition of the U.S. initiative. Shiner stated, “If EU member states are serious about trade-benefiting development, now is the time to join us in demonstrating leadership.”

View USIS Washington File report

WTO: Lamy Calls for New “Negotiating Spirit” to Advance Trade Talks

In his report to heads of delegation on November 10, WTO Director-General Pascal Lamy said that informal meetings of a number of ministers during the past few days have not been able to bridge differences, which would now require members to “recalibrate” their expectations for the Hong Kong Ministerial Conference. He stressed the need to maintain the ambition of the Round, and for Hong Kong to mark a step forward in successfully completing the talks next year.

View WTO news release

Trade, Security Top President's Agenda for Talks with Asian Leaders

Improving trade relations and enhancing security are the main issues President Bush will discuss when he travels to China, Japan and South Korea November 15-21. The President will attend the 13th Asia Pacific Economic Cooperation (APEC) Leaders' meeting in Busan, South Korea during his visit to the region. Mr. Bush gave television interviews November 8 to broadcasters from those nations in preparation for his upcoming trip to Asia. During his meeting with Chinese President Hu Jintao, President Bush will discuss free trade, intellectual property rights enforcement, and U.S. concerns with China's currency. When he meets with Japanese Prime Minister Koizumi, among the agenda items is Japan's two-year ban on U.S. beef, which he urged Japan to lift. Regarding his meeting with South Korea President Roh-Moon Hyun, the President noted the possibility of a U.S.- South Korean Free Trade Agreement, commenting that “both countries are going to have to work hard to make that happen.�

View USIS Washington File report

Meetings Fail To Advance WTO Negotiations, U.S. Officials Say

During a November 9 teleconference with reporters, U.S. Trade Representative Rob Portman and Secretary of Agriculture Mike Johans said that WTO members should continue their work toward consensus at the Hong Kong ministerial meeting in December, even though key parties have failed again to produce a framework for concluding the talks. They said that WTO participants should keep working hard to make progress before the Hong Kong meeting. Johanns called premature any notion of ending the negotiations. Portman disagreed sharply with an assertion that the United States is demanding more than the EU possibly can deliver on the politically sensitive issue of cutting agricultural subsidies.

View transcript of Portman-Johans teleconference

Commerce Secretary Gutierrez Applauds United States-China Textile Agreement

On November 8, U.S. Trade Representative Rob Portman and Chinese Minister of Commerce Bo Xilai announced in London that the United States and China had, after three months of intense negotiations, reached a broad agreement on textile trade. The agreement, which lasts through the life of the China WTO Textile Safeguard (through 2008), covers more than 30 individual products and contains quotas that begin at low levels. Commenting on the announcement, Commerce Secretary Carlos M. Gutierrez said that the agreement “…highlights the value we place on aggressively enforcing our trade agreements to provide a fairer and more certain trading environment for American businesses and American workers.”

View Commerce Department press release

View USTR fact sheet on agreement

President Bush Says United States, Panama Close to Free-Trade Pact

Speaking at a November 7 press conference in Panama City with Panamanian President Torrijos, President Bush said that the United States and Panama are close to reaching a bilateral free-trade pact. During his remarks, the President also hailed Panama for the strong growth in its economy and its commitment to fighting corruption, combating narco-trafficking and promoting democracy. Mr. Bush added that during his November 6 trip to Brazil, he found strong agreement that Brazil and the United States should work together to advance the Doha Round of the WTO.

View transcript of remarks by Presidents Bush and Torrijos

Summit of the Americas Reaches Successful Conclusion

At a November 5 press briefing after the Summit of the Americas, Assistant Secretary of State for Western Hemisphere Affairs Thomas Shannon said that the meeting provided the leaders of the Western Hemisphere an important opportunity for dialogue, and it reached a successful conclusion. Shannon explained that the communiqués, including one on the Doha Round of WTO trade negotiations, highlighted hemispheric leaders' support for countries undergoing democratic transitions while also sending a strong message prior to the upcoming WTO meetings about the importance of concluding the current round of talks. In addition, Shannon said, the summit was particularly important because the debate between the leaders "was very, very useful to identify points of consensus and areas where there is not yet consensus," including the pace of efforts to create a proposed Free Trade Area of the Americas (FTAA). He said that progress in the upcoming WTO talks, particularly in the area of agricultural subsidies, could present an opportunity for further progress on the FTAA. He noted that while 29 of the 34 regional democracies are prepared to move forward immediately toward the creation of an FTAA, Brazil, Argentina, Uruguay, Paraguay and Venezuela are not.

View USIS Washington File report

View White House fact sheet on Summit of the Americas

United States, Uruguay Sign Bilateral Investment Treaty

On November 4, during the Summit of the Americas, the United States and Uruguay signed a bilateral investment treaty. Assistant Secretary of State for Western Hemisphere Affairs Thomas Shannon and Uruguayan Foreign Minister Reinaldo Gargano signed the agreement on behalf of the United States and Uruguay, respectively. According to a State Department press release, the signing of the agreement at the Summit reflects U.S. determination to strengthen both trade and investment ties with willing partners. The treaty, which is subject to ratification by both countries, will provide greater confidence to U.S. and Uruguayan investors, the State Department said.

View USIS Washington File report

USITC Begins Assessment Of U.S.-Oman FTA

At the request of USTR, the U.S. International Trade Commission (USITC) has instituted an investigation to assess the comprehensive bilateral free trade agreement (FTA) that the President has proposed to establish with Oman. USITC will prepare a report that assesses the likely impact of the agreement on the U.S. economy as a whole and on specific industry sectors and the interests of U.S. consumers. The President notified the Congress on October 17, 2005, of his intent to enter into the FTA with Oman. The Commission will hold a public hearing in connection with the investigation on December 7, 2005. For information on the hearing, please consult the USITC press release.

View USITC news release

U.S. to Join Japan, EU, Korea and Taiwan in Agreement to Cut Tariffs on Multi-Chip Packages

On November 3, U.S. Trade Representative Rob Portman announced that the United States has negotiated an agreement with the European Union, Japan, Korea, and Taiwan in applying zero tariffs on multi-chip integrated circuits (also known as “multi-chip packages” or “MCPs”). MCPs are an evolutionary new semiconductor used wherever miniaturization is desirable – for example, in cell phones, digital cameras and Personal Digital Assistants (PDAs). U.S. headquartered companies account for over 50% of global MCP production, which was valued at over $4 billion in 2004. Under the agreement, the United States will cut its 2.6% duty on MCPs, while Korea will cut its 8% bound duty and the European Union will cut duties bound at rates as high as 4%. Japan currently does not have duties on MCPs. On September 15, at their annual Government/Authorities Meeting on Semiconductors (GAMS), the United States, Japan, Korea, the European Union and Taiwan concluded a final draft text of an agreement to cut applied duties on MCPs. The parties are now working through domestic approval procedures, and the agreement is expected to take effect on January 1, 2006.

View USTR press release

View USTR fact sheet on multi-chip packages

Bush To Push For Democracy, Free Trade at Summit

At a White House press briefing, National Security Advisor Stephen Hadley said that during the November 4-5 Summit of the Americas in Mar del Plata, Argentina, the Bush administration is hoping to build upon a “common commitment” by Latin American leaders that democracy, free markets and free trade are “the best way” to enhance prosperity in the Western Hemisphere. Hadley said the steps include practicing good governance, fighting corruption, improving education and health care, and “using the power of free markets, free trade and private investment to really enhance prosperity.” He also said that free trade and private investment “dwarfs the impact” of aid programs in terms of building economic growth and enhancing prosperity. During a November 2 private-sector forum in Buenos Aires, Argentina, the U.S. Chamber of Commerce and Association of American Chambers of Commerce of Latin America (AACCLA) released a report “Three Simple Things (that governments can do to create jobs, fight poverty and enhance the competitiveness of the Americas).” The report suggests that Western Hemisphere governments should free the labor market to create jobs, tear down barriers to entrepreneurship and open trade to enhance competitiveness.

View transcript of press briefing

View USIS Washington File report on private sector forum

USTR Statements Regarding Quotas on Chinese Socks, U.S.-China Textile Talks

View the text of USTR Special Textile Negotiator David Spooner’s statement regarding the U.S.-China agreement which limited Chinese sock imports to slightly more than 10 million dozen pairs of cotton, wool, and man-made socks. This agreement permits the Administration to delay action until the end of December on a sock industry request to renew a year-long sock safeguard quota that expired last week while the Administration works to conclude a broad textile agreement with China that would govern imports from 2006 through 2008. Regarding the U.S.-China textile negotiations Spooner stated that the discussions “have yielded substantial progress on a large number of issues. We look forward to meeting again soon."

View USTR statement on U.S.-China agreement on socks

View USTR statement on U.S.-China textile talks

WTO Ministerial Outcome Likely Hinges on London and Geneva Meetings

On November 2, U.S. Trade Representative Rob Portman and Secretary of Agriculture Mike Johans told a House of Representatives Agriculture Committee hearing that the chance of success for a crucial December WTO ministerial meeting in Hong Kong should be determined within days and will depend on a better European Union (EU) offer to cut farm tariffs. On November 7-9, Portman and Johans are scheduled to meet in London and Geneva with the trade and agriculture ministers from the EU, Brazil, India, Australia and Japan. These meetings should determine whether the long-stalled WTO negotiations can move forward, the U.S. officials stated. Portman said the EU's most-recent proposal offering an average 39 percent cut in farm tariffs was too little. Johanns testified to the committee that, while time for success is running out quickly, a solution also could emerge quickly.

View USIS Washington File report

United States Wins WTO Sunset Appeal on Oil Country Tubular Goods

On November 2, USTR announced that the WTO Appellate Body has ruled in favor of the United States on Mexico’s challenge to a U.S. antidumping proceeding on steel pipe from Mexico. The dispute involved a U.S. “sunset review” on oil-country tubular goods (OCTG). Sunset reviews determine whether duties on dumped imports should continue to remain in place for more than five years. USTR spokesperson Christin Baker commented that the Appellate Body’s ruling “will further strengthen the effectiveness and credibility of the WTO dispute settlement system, and vindicates the application of U.S. trade remedy laws in this case.” The Appellate Body reversed a WTO panel finding that the U.S. Department of Commerce’s Sunset Policy Bulletin, which provides guidance on Commerce's conduct of sunset reviews, is inconsistent with WTO rules, while upholding a finding that the U.S. International Trade Commission (USITC) had not broken WTO rules in the sunset proceeding on OCTG.

View USTR press release

USTR Portman Applauds Japan Regulatory Reforms

On November 2, U.S. Trade Representative Rob Portman commended the economic reforms Japan is taking to open markets to U.S. exporters and to help promote growth in the Japanese economy. Detailed in this year’s annual report to President Bush and Prime Minister Koizumi under the U.S.-Japan Regulatory Reform and Competition Policy Initiative, the reforms include measures to expand market access in the mobile wireless sector, facilitate trade in fruits and vegetables, intensify bilateral cooperation on intellectual property rights protection and enforcement, and speed the delivery of innovative medical devices and drugs to the public. However, several trade problems persist, including Japan’s continuing ban on the import of U.S. beef; Portman commented that Japan’s steps forward this week towards reopening its beef market are important progress. In addition, the Report places a special focus on regulatory and market access issues related to medical devices and pharmaceuticals, which is of particular importance given Japan will be making key decisions on reimbursement pricing in the coming months.

View USTR press release

View text of report

United States Designates New Qualifying Industrial Zone in Egypt

USTR has designated a new qualifying industrial zone (QIZ) in Egypt’s central delta region and approved the expansion of two existing QIZs in Cairo, Egypt, and the Suez Canal zone, opening the way for stronger economic ties among Egypt, Israel and the United States. Under the terms of the program, goods manufactured in Egyptian QIZs with inputs from Israel are granted duty-free access to the U.S. market. The first QIZs in Egypt were established on the basis of a December 2004 agreement among Egypt, Israel and the United States. The U.S. Congress first approved the QIZ program for Jordan and Egypt in 1996. Since then, 13 QIZs have been established in Jordan and three in Egypt.

View USTR press release