September 2005 News

Signs of Progress in U.S.-Japan Trade, but Obstacles Remain

During testimony before the House Ways and Means Committee on September 28, Assistant U.S. Trade Representative for Japan, Korea and Asia-Pacific Economic Cooperation (APEC) Affairs Wendy Cutler said that the United States and Japan have made considerable progress in trade relations through an incremental process occurring in individual sectors. At the same time, she stated that "very real" trade problems remain, which require continued engagement and attention. For example, Japan continues to restrict imports of beef from the United States following the discovery of two cases of bovine spongiform encephalopathy in the United States over the last two years. Cutler noted that while the United States has “…come a long way with Japan over the years and…found ways of doing business on the trade front that are generally yielding good results…we should not be complacent."

View USIS Washington File report

U.S. Official Outlines Goals for Fourth Summit of the Americas

In remarks to the Miami Herald Competitiveness Conference on September 29, U.S. Ambassador to the OAS John Maisto said that the nations of Latin America and the Caribbean must increase their competitiveness to combat poverty and inequality. He stated that the upcoming Summit of the Americas, to be held November 4-5 in Argentina, offers a "golden opportunity" to focus on the policies needed to enhance regional competitiveness. Maisto, who is also U.S. national coordinator for the Summit of the Americas, said that free trade, investing in people, and good governance have been integral elements in past summits, and he added that the United States is confident that these themes also will form the core of the upcoming summit. Maisto added that the United States also expects the summit declaration to express support and build momentum for the current WTO talks, as well as the proposed Free Trade Area of the Americas.

View USIS Washington File report

USTR Statement on Third Round of U.S.-China Textile Talks

In a September 29 statement, USTR Special Textile Negotiator David Spooner said the third round of U.S-China talks aimed at reaching a broad textile agreement ended September 28 without reaching an agreement. Spooner added, however, that the parties made progress, especially in regard to product coverage and quota levels. He said that the United States’ goal is to “seek a longer-term solution that will permit the orderly development of textile and apparel trade… the United States will have no hesitation in walking away from a bad deal.” The parties will meet again in October, and will consult soon regarding the date and location of the next round of negotiations.

View USTR press release

Progress Made in U.S.-Andean Trade Talks, Says USTR Official

During a September 27 conference call with reporters, Assistant U.S. Trade Representative for the Americas Regina Vargo said the recently concluded 12th round of U.S.-Andean Free Trade Agreement talks in Cartagena, Columbia, represented "a very good round." She stated that negotiators are now intensifying their efforts to complete the proposed agreement in the next two months, although quite a bit of work remains. Vargo explained that, as December draws near, trade officials increasingly will be involved in preparations for the Sixth WTO Ministerial Conference in Hong Kong. She added that elections in the spring of 2006 in Colombia and Peru add further impetus to concluding the trade talks this autumn. Vargo noted that "a door is open" to Bolivia to join the trade talks, but added that at this stage that Andean nation remains an observer in the negotiations.

View USIS Washington File report

Removing Trade Barriers Would Aid Growth, Stem Poverty, Snow Says

During his September 25 remarks to the Development Committee (a World Bank/IMF forum), Treasury Secretary John Snow stated that the removal of trade barriers under the Doha Round negotiations is "the greatest step our governments can take to generate increased growth and poverty reduction." Noting that the U.S. has one of the least restrictive trade regimes in the world, Snow stressed that developing countries must reduce their own trade barriers in order to reap the benefits of trade liberalization. He added that increased market access in services is critical, particularly in the financial sector, and has the potential to generate even more income than opening markets for goods. For its part, the U.S. will continue to increase aid to "those high performing countries that can demonstrate how our assistance will result in greater growth and poverty reduction."

View USIS Washington File report

WTO: Lamy Says Hong Kong Ministerial is Last, Best Chance to Conclude Doha Round by 2006

In his remarks to the IMF International Monetary and Financial Committee on September 24, IMF Director-General Pascal Lamy said that “the world economy will not come to an end if Hong Kong fails ... but it will be left significantly weaker...” He said he would work intensively with the IMF and the World Bank in the coming months to make the “Aid for Trade” initiative for developing countries a reality.

View transcript of Lamy’s remarks

Commerce Secretary Gutierrez Unveils Initiatives to Fight Intellectual Property Theft

During a September 21 visit to California, U.S. Commerce Secretary Carlos M. Gutierrez unveiled new Bush administration initiatives to fight intellectual property theft in meetings with high-tech and movie industry executives. The new initiatives include the appointment of intellectual property rights (IPR) experts in key overseas countries including Brazil, China, India, and Russia, a new Small Business Outreach program to educate U.S. small businesses on how to protect their IPR, and a Global Intellectual Property Academy that will provide training programs for foreign government officials on global IPR issues. The Secretary said that the Bush Administration "is committed to stopping trade in pirated and counterfeit goods," adding that intellectual property property theft "is not tolerated and will not be tolerated." IP theft costs U.S. businesses an estimated $250 billion per year, and 750,000 American jobs.

View Commerce press release

USITC Issues Final Industry Trade And Technology Review

Multilateral efforts to enhance customs clearance of merchandise trade and worldwide market developments for environmental insurance are among the topics examined in the final issue of Industry Trade and Technology Review (ITTR), a periodic publication of the U.S. International Trade Commission (USITC). The publication will be merged with USITC’s International Economic Review, creating a new publication that will debut in the spring of 2006. The ITTR's "Key Performance Indicators" will continue to be updated on a quarterly basis and posted to the Commission's Internet site. The data can be accessed at http://www.usitc.gov/ind_econ_ana/pro_ser.htm,

View USITC press release

Russia: Intellectual Property Rights Toolkit

View the new Russia Intellectual Property Rights Toolkit. The Toolkit contains materials describing the scope of the IPR issue in Russia, links to relevant legislation and other resources, suggestions regarding what American companies can do to protect their IPR, as well as steps rightsholders should consider after an infringement comes to their attention. The Russia Toolkit is the latest in a set of country-specific IPR Toolkits currently being developed for commercially significant markets. The current IPR Toolkits can be reached from http://www.stopfakes.gov, the one-stop website for U.S. Government resources for intellectual property protection.

Commerce Secretary Gutierrez Says Free Trade Essential to Economic Growth and Development

View the text of Secretary of Commerce Carlos Gutierrez's press release regarding President Bush's address to the UN. Secretary Gutierrez "commend[ed] President Bush's bold leadership to restore momentum to the free trade agenda and help developing countries around the world." He added, "Fulfilling this bold mission will require diligent effort within the upcoming Doha round."

U.S. and EU Reach Agreement on Trade in Wine

On September 15, U.S. Trade Representative Rob Portman announced that the U.S. and the European Community reached agreement on wine-making practices and labeling of wine, aimed at facilitating bilateral trade in wine valued at $2.8 billion annually. Among other things, the agreement provides for recognition of existing current wine-making practices; the United States limiting the use of certain “semi-generic” terms in the U.S. market; and the EU allowing under specified conditions for the use of certain regulated terms on U.S. wine exported to the EU. It does not address the use of “geographical indications,” a form of intellectual property. The agreement also provides for a second phase of negotiations to address other outstanding U.S.-EU wine trade issues. View USTR press release

President Bush Presses for Progress on Trade Barriers

During his September 14 address at U.N. headquarters in New York, President Bush said that the WTO Doha Development Agenda negotiations could lift millions of people around the world out of poverty. The President reiterated his challenge to WTO members to “eliminate agricultural subsidies that distort trade and stunt development, and to eliminate tariffs and other barriers to open markets for farmers around the world." Mr. Bush went further, asserting that his administration would accept elimination of all barriers to all trade, agricultural and nonagricultural, if other countries did so. View text of President’s address View fact sheet on trade liberalization through Doha Round

Transcript of Portman/Mandelson Media Availability

View the transcript of the September 15 media availability of U.S. Trade Representative Rob Portman and EU Trade Commissioner Peter Mandelson. During their meeting, Portman and Mandelson reviewed a number of U.S.-EU bilateral issues. They also discussed the state of play in the Doha round of WTO negotiations and preparations for the Hong Kong Doha ministerial meeting in December.

AGOA Has "Uneven" Impact Across Africa

Assistant U.S. Trade Representative for Africa Florizelle Liser told a Washington audience September 14 that, thanks to the historic African Growth and Opportunity Act (AGOA), the $11 trillion U.S. market is wide open to exports from sub-Saharan Africa’s 37 AGOA-eligible countries. While stating that AGOA has been successful, she noted that its overall impact has been “uneven” across the continent, and she called on African countries to further diversify their economies. Although more and more African countries are taking advantage of AGOA, Liser cautioned that the bulk of the trade act’s positive impact has been concentrated in 12 African countries. South Africa has exported more than 300 diverse products under AGOA. Some other countries, she added, “have yet to export anything under AGOA.” Liser said AGOA has had a “positive impact" not only for African business but for American business as well. From 2000, when AGOA was launched, to 2004, U.S. exports to sub-Saharan Africa increased 44 percent, she noted.

View USIS Washington File report

Accord with U.S. Opens Way for Saudi WTO Bid

On September 9, U.S. Trade Representative Rob Portman announced that the U.S. and Saudi Arabia have concluded a bilateral market access agreement, paving the way for Saudi Arabia to complete its accession bid to the WTO. Portman commented, "As a result of negotiations on its accession to the WTO, we will see greater openness, further development of the rule of law, and political and economic reform in Saudi Arabia." As part of the new bilateral agreement, Saudi Arabia has revised many of its trade policies, particularly laws related to intellectual property rights, and lowered tariff and nontariff trade barriers. Bush administration officials hope that Saudi Arabia's WTO accession will lead to closer U.S.-Saudi trade ties and perhaps a free-trade agreement. Ultimately, the USTR hopes to knit bilateral trade agreements with various Arab countries into a U.S.-Middle East Free Trade Area.

View USTR press release

WTO Opens Panel Proceeding to Public for First Time

On September 12, journalists, NGO representatives, scholars and others visited the WTO in Geneva to watch the proceedings of a Dispute Settlement Panel via closed-circuit television. It is the first time ever a legal proceeding is open for public viewing at the WTO. The decision was taken by the members of the dispute settlement panel after a request from the parties: Canada, the European Communities, and the United States. David Shark of the United States said that his country "has been seeking open panel meetings for quite some time and at each panel meeting or proceeding that we have participated in, we have proposed this to our fellow disputants." He added, "We are particularly pleased that the panel itself has taken the decision to open the meeting to the public." The proceedings are part of the case "Continued suspension of obligations in the EC - hormones dispute" a dispute brought by the EC against Canada and the U.S. View WTO news item

U.S. Encourages APEC Economies To Pursue Economic Liberalization

In his statement at the opening of the 12th annual Finance Ministers' Meeting of the Asia-Pacific Economic Cooperation (APEC) forum in Cheju, South Korea, Deputy Secretary of the Treasury Robert Kimmitt stated that countries which implement policies of economic liberalization and welcome foreign investment will have greater success in achieving sustained economic growth. Kimmitt said, "The United States strongly believes that the world economy works best with free trade, the free flow of capital and flexible exchange rates." He welcomed South Korea's intention to pursue a policy of financial deregulation and its decision to allow foreign financial companies to set up financial holding companies in South Korea, and praised China's adoption in July of a more flexible exchange rate mechanism. View USIS Washington File Report (includes text of Kimmitt's remarks)

Dominican Republic Approves U.S.-Central America Free Trade Pact

U.S. Trade Representative Rob Portman congratulated the government of the Dominican Republic for its September 6 approval of the U.S.-Central America Free Trade Agreement (CAFTA-DR). The Dominican Republic's Chamber of Deputies approved the agreement by a vote of 118 to 4. In a September 6 statement, Portman offered his congratulations and indicated that the U.S. will be coordinating the implementation of the accord with CAFTA-DR signatory countries in the next few weeks. The Dominican Republic, El Salvador, Guatemala, Honduras and the United States have now approved the agreement, while the remaining signatories -- Nicaragua and Costa Rica -- have not, thus far. View USIS Washington File report (includes text of USTR press release)

USTR Statement Regarding WTO Panel Report on Softwood Lumber

View the text of USTR Spokesperson Neena Moorjani's August 30 statement regarding a WTO panel's finding that the U.S. International Trade Commission's 2004 determination on softwood lumber is consistent with U.S. obligations under the WTO.

USTR Statement Regarding Second Round of Textile Talks with China

View the text of USTR Special Textile Negotiator David Spooner’s September 1 statement regarding the second round of textile talks with China, which ended without the parties reaching a broader agreement. He said the U.S. is optimistic about making progress on the remaining issues.

Growth Reported in U.S.-Africa Trade, but More Growth Needed

Delegates to the Fourth AGOA Forum concluded that, although there has been “marked growth” in the level of U.S.-Africa trade under the African Growth and Opportunity Act (AGOA), “much remains to be done” to realize the full value of the trade relationship. The forum was held in Dakar, Senegal, on July 18-19. During the meeting, the delegates also reaffirmed that the private sector will play an integral part in Africa’s future economic growth and development. Private-sector plenary sessions and workshops at the forum focused on agriculture, investment, finance, export diversification, public health and information and technology. Key recommendations from the forum call for using regional incentives to attract capital and investment; enhancing business-to-business linkages; promoting export diversification; using successful marketing techniques to promote the sale of key African products in the U.S.; and using private-public partnerships to help address health challenges in Africa. View USIS Washington File report (includes text of concluding report)

CITA Announces China Safeguard Decisions

On September 1, the Committee for the Implementation of Textile Agreements (CITA) announced affirmative decisions in two textile safeguard cases. As a result of these determinations, CITA has requested consultations with the Government of China on these products and has put in place quotas that will limit the growth in imports of the covered products.

View ITA Press Release

USTR Lifts Tariff Sanctions Against Ukraine, Announces Out-of-Cycle Review

In recognition of the efforts that the Ukrainian Government has made to improve its legislative framework to protect intellectual property rights, on August 31 U.S. Trade Representative Rob Portman announced the lifting of 100 percent tariff sanctions that since 2002 had been imposed on $75 million worth of Ukrainian exports to the U.S.

View USTR Press Release