Trade Compliance Center - Making America's Trade Agreements Work for You!

Secretary of Commerce Gutierrez’s Statement on Signing of U.S.-Colombia Trade Promotion Agreement

In a November 22 statement, Commerce Secretary Carlos M. Gutierrez said he was pleased that the United States and Colombia had signed their Trade Promotion Agreement (TPA). The Secretary called the Colombia TPA “a comprehensive free trade pact that will enhance economic growth and prosperity for the people of the United States and Colombia and is a key part of this Administration’s global effort to open markets for American exporters around the world.” He added, “The Colombia TPA linked with our other agreements with our neighbors shows that the U.S. is engaged in opening markets and strengthening democracy in our hemisphere while creating jobs at home and abroad.”

Commerce Secretary Gutierrez Announces Inaugural Americas Competitiveness Forum

On November 20, Commerce Secretary Carlos M. Gutierrez announced that the first Americas Competitiveness Forum will be held June 11-13, 2007, in Atlanta. High-level government officials from each of the hemisphere's 33 countries with democratically elected governments are invited to the forum to discuss how best to enhance the region's ability to compete more successfully in the global marketplace. Free trade agreements, such as the recently implemented Central American-Dominican Republic Free Trade Agreement, are considered important tools in expanding prosperity and regional competitiveness. Topics for the forum include: leveraging public-private partnerships to foster innovation; workforce development and education; and business facilitation/supply chain management. Additionally, private-sector representatives from the region, non-governmental organizations, and universities will be invited to participate.

View Commerce press release

On November 20, Commerce Secretary M. Carlos Gutierrez called the U.S.-Russia bilateral agreement, which successfully concludes 12 years of negotiations addressing bilateral market access issues and moves Russia one step closer to WTO accession, “a significant milestone.” He stated that ”Russia has committed to allow American manufacturers, farmers and service providers better access to its markets and to enhance enforcement and protection of intellectual property rights. The agreement sets the stage for increased economic growth and prosperity that will benefit both countries once it is fully implemented.”

During his remarks to the Federation of Indian Chambers of Commerce and Industry in New Delhi on November 21, Secretary of Agriculture Mike Johanns said that India must play a leading role in reviving WTO talks by offering more market access to agricultural exports of the United States and other countries. Johanns acknowledged that influential groups in India have concerns about trade liberalization and increased market access, but added that Indian producers and exporters of farm goods would benefit “substantially” from a WTO agreement that would lower tariffs and other trade barriers. He said that potential WTO benefits will not be realized if India continues to insist on excluding a large number of special products from full tariff reductions. The Secretary urged India to establish science-based regulatory frameworks, especially for food safety issues, and offered U.S. help in such efforts.

U.S. Under Secretary of Commerce for International Trade Frank Lavin announced that the business development mission he will lead to India will include 238 business participants representing 186 U.S. companies. The mission, which begins at the India Business Summit in Mumbai on November 28, 2006, will be the largest mission of its kind ever led by the U.S. Government. Mr. Lavin commented that “The goal of the mission is to position U.S. firms for long-term business success in this fast growing market so we can expand our exports and create more American jobs.” Total U.S. exports to India in 2005 were $7.9 billion, an increase of 30 percent over 2004. Through September 2006, U.S. exports have grown 24.3 percent over the same period last year. The trade mission represents a diverse range of industry sectors, with the greatest participation from medical/healthcare companies, information technology companies, energy/power/oil & gas companies, and telecommunications companies.

Before leaving for India, the Under Secretary praised India’s market reforms, which he said have contributed to growing trade between the two countries. However, he told the U.S.-India Business Council in Washington that India can do more to boost its economic growth. He cited as particularly pressing such issues as relaxing foreign ownership restrictions in retail, financial services, banking and insurance sectors; establishing and enforcing laws protecting intellectual property rights; and reducing tariffs.

View ITA press release

View transcript of Lavin’s remarks to U.S.-India Business Council

In its 2006 annual report issued November 16, the U.S.-China Economic and Security Review Commission (USCC) found that China has not moved decisively in countering intellectual property violations. "While China is a global actor, its sense of responsibility has not kept up with its expanding power," Commission Chairman Larry Wortzel said at a press conference November 16. Wortzel said the commission sought to highlight its top 10 recommendations, which primarily deal with closer congressional scrutiny and increased bilateral dialogue on security issues, but also touch on China's compliance with its World Trade Organization (WTO) commitments and protection of intellectual property rights.

On November 19, U.S. Trade Representative Susan C. Schwab and Russian Minister of Trade and Economic Development German Gref signed a bilateral market access agreement that is an important element in Russia’s accession to the WTO. Completion of this bilateral agreement marks a significant milestone in Russia’s bid to join the WTO. Schwab commented, "I am pleased that we have concluded this important agreement in connection with Russia’s WTO accession negotiations. This is a strong and far-reaching commercial agreement that meets the high standards of President Bush’s market-opening trade agenda and moves Russia closer to full integration into the global, rules-based trading system.”

According to a USTR press release, the bilateral agreement will create significant new opportunities for U.S. producers and exporters of industrial and agricultural goods, as well as U.S. services providers, when it enters into effect. The agreement also provides for the immediate implementation of some market opening actions for industrial and agricultural goods. The agreement resolves long-standing bilateral issues related to trade in agricultural goods, and also puts in place a strong and enforceable bilateral blueprint for protection and enforcement of intellectual property rights (IPR). Implementation of the commitments on IPR, agriculture, and industrial goods will be essential to completing the final multilateral negotiations on the overall accession package. Schwab added, “We still have work to do, but today’s agreement puts new energy and momentum into the negotiating process. We will continue to work closely with domestic stakeholders and the U.S. Congress in the next phase of the negotiations."

During his remarks to the U.S. Chamber of Commerce on November 13, Deputy Assistant Secretary of Commerce for Trade Agreements Compliance Stephen Jacobs said the administration has set a as a key goal "reaching out to our international trading partners to try and develop a coalition of countries who are willing to

target the practices of organized piracy." Daniel Baldwin, an assistant commissioner at U.S. Customs and Border Protection, told the Chamber that international cooperation is required to deal with intellectual property piracy as the trade in counterfeit goods is growing. According to the Commerce Department, seizures of fake and counterfeit goods at U.S. borders have doubled since 2001. Baldwin stated that his agency has made 14,500 seizures so far in 2006, which is 80 percent more than its 2005 total. "This is not a U.S. problem -- it is a problem around the world," Baldwin said, adding that IPR-infringing goods hurt businesses and consumers everywhere. Jacobs said that the issue is not “just a matter of overpaid Hollywood stars and singers.”

Speaking in Singapore on November 16--two days before the Asia-Pacific Economic Cooperation (APEC) leaders' meeting in Hanoi, Vietnam--President Bush said that the United States will give “serious consideration” to the idea of creating a free-trade zone that would span five continents and include countries that represent nearly half of global trade. According to a report

prepared by the APEC Business Advisory Council, a group-wide agreement would create many benefits for APEC members. In particular, it would make doing business less complex and costly by bringing into line more than three dozen free-trade deals signed or currently being negotiated among the member economies. But the report also acknowledged practical difficulties in negotiating such a pact, mostly because it would require changing the nonbinding decision-making character of the group. Bush also called on nations in the Asia-Pacific region to help revive WTO talks aimed at liberalizing trade worldwide.

According to a senior U.S. administration official, leaders and foreign ministers attending the upcoming Asia-Pacific Economic Cooperation (APEC) annual meeting are expected to discuss a potential free trade agreement (FTA) within the Asia-Pacific region. The official said that, as part of the discussion on advancing economic growth, trade liberalization and trade-related security, the leaders will examine “what sorts of analysis and what sorts of working groups might be established over the next year to really understand what would need to be accomplished to make a free trade agreement of the Asia-Pacific a reality and what the benefits would be to the members of APEC.” He said the idea for such an FTA did not originate with the United States, nor did he expect President Bush to propose such an FTA at this year’s meeting. Leaders from the 21 member APEC economies also are expected to discuss how to rejuvenate stalled WTO talks on the Doha Development Agenda when they meet November 18-19 in Hanoi, Vietnam. APEC foreign and trade ministers will be meeting separately in Hanoi prior to the Leaders' Meeting.

View the text of Commerce Secretary Carlos M. Gutierrez’s remarks to an IPR roundtable hosted by the U.S. Embassy in Beijing. In his remarks, the Secretary underscored the importance of intellectual property (IP) protection, citing a National Chamber Foundation report that piracy and counterfeiting are costing the United States $200-$250 billion a year. While he noted that the Chinese have moved forward in a number of areas, including Chinese court protection of trademarks or patents in major cases for companies such as Pfizer, GM, Starbucks and Kodak, he targeted three specific IPR challenges that China can and should address in the very near term. They are: 1) China should lower its criminal thresholds for prosecuting those involved in commercial piracy and counterfeiting; 2) China should allow greater market access for audiovisual products; and 3) China should join those countries that share their factories' optical disc exemplars with the international laboratories that trace pirated discs to their source. The Secretary stated, “All of us must treat IP theft as the global economic, health and safety threat that it is and continue to work together to eliminate it.”

On November 13, the WTO Appellate Body issued a report confirming that the EU fails to administer in a uniform manner its rules on the customs classification of liquid crystal display monitors. The report upheld a June 16, 2006 finding by a WTO dispute settlement panel. Additionally, the Appellate Body agreed with the United States that that panel erred in declining to consider the broader question of whether the EU’s system of customs administration as a whole is inconsistent with WTO rules requiring the uniform administration of customs laws. In his comments, Deputy U.S. Trade Representative John Veroneau stated, “Today’s Appellate Body report reinforces that the EU is subject to the same rules as other WTO Members. The EU’s internal decisions about how to organize itself do not excuse it from or diminish its obligations to other WTO Members… The United States welcomes the Appellate Body’s report and looks forward to the EU’s compliance with its findings.”

On November 13, senior U.S. trade officials met with top officials from Peru and Colombia to discuss the extension of expiring trade preferences under the Andean Trade Preference Act (ATPA) and the pending pending free trade agreements. Deputy U.S. Trade Representative John Veroneau stated that the United States “… expressed our support for extending ATPA preferences to Colombia, Peru, Ecuador and Bolivia in a timely fashion, so as to minimize any business disruptions. We also reiterated our strong support for the U.S.-Peru Trade Promotion Agreement and the U.S.-Colombia Trade Promotion Agreement, and reaffirmed our commitment to work with Congress to move these agreements at the earliest possible date."

The Commerce Department’s Trade Compliance Center (TCC) has updated its brochure, which describes how the TCC (in cooperation with other U.S. Government agencies) can help exporters who are facing unnecessary barriers to trade and investment in foreign markets. The brochure also notes the resources that are available through TCC On-Line, including Report a Trade Barrier, that exporters can use to contact the TCC. To obtain copies of the brochure, please contact the TCC at 202-482-1191 or tcc@mail.doc.gov

Commerce Secretary Gutierrez’s Statement on Vietnam's Approval for WTO Membership

Commenting on the WTO’s approval of Vietnam’s membership, making possible its entry into the organization by the end of 2006, Commerce Secretary Carlos M. Gutierrez stated, "Vietnam's entry into the WTO is a significant step forward and further opens the doors of opportunity for Vietnam and the United States." He “urge(d) Congress to act quickly to approve Permanent Normal Trade Relations status for Vietnam so that American exporters can benefit from this important agreement.”

President Bush’s trip to Vietnam for the Asia-Pacific Economic Cooperation (APEC) Leaders' Meeting will include stops in Singapore and Indonesia, according to National Security Advisor Stephen Hadley. At the meeting, scheduled for November 18 and 19 in Hanoi, Vietnam, Bush plans to work with other world leaders to “advance the core APEC goals of economic growth, trade liberalization and trade-related security,” Hadley told reporters at a November 9 press briefing. Over the course of the two-day event, Bush plans to hold bilateral discussions with South Korean President Roh Moo-hyun, Japanese Prime Minister Shinzo Abe and Chinese President Hu Jintao, according to Hadley. In a separate interview with the Vietnam News Agency November 8, Secretary of State Condoleezza Rice said she hopes “the message that will come out of APEC is the importance of … living up to the rules of the free trading system, like intellectual property rights protection.”

U.S. and EU Unite to Strengthen Economic Integration and Boost Jobs, Growth And Competitiveness

On November 9, the Bush Administration hosted the second informal U.S.-EU economic ministerial meeting to discuss transatlantic economic integration and shared economic challenges. Commerce Secretary Carlos M. Gutierrez and Energy Secretary Samuel W. Bodman met with European Union Commission Vice President Günter Verheugen and Finnish Minister for Trade and Industry Mauri Pekkarinen to review joint progress in the most significant areas of the transatlantic economy, including innovation, intellectual property rights (IPR), regulatory cooperation, and energy security. Following the adoption of a joint strategy to fight soaring global illegal trade in counterfeit and pirate goods, U.S. and EU experts are working closely together to protect IPR. Gutierrez, Bodman, Verheugen, and Pekkarinen also agreed to strengthen efforts to remove regulatory barriers to trade and investment. The parties will explore a limited number of projects including in the automobile sector and health-related industries. The participants further discussed a range of other critical economic issues, including the challenges of the global energy market and the WTO Doha Development Agenda negotiations.

Gutierrez Trade Mission To China Will Focus On Expanding U.S. Export Opportunities

In an effort to expand U.S. export opportunities, Secretary of Commerce Carlos M. Gutierrez will lead a broad delegation of 25 U.S. businesses to China November 13-16, and will discuss with senior Chinese officials ways to resolve key bilateral trade issues. Gutierrez, who leads the Joint Committee on Commerce and Trade (JCCT), the major U.S.-Chinese bilateral trade forum, will highlight core areas for intensified discussions within the JCCT and will give remarks at a major Intellectual Property Rights (IPR) event hosted by the United States in Beijing. The Secretary stated, "While China is more open than before, much progress must still be made to provide fair access to American exporters and businesses. China is a major beneficiary of the international economic system, and with protectionism rising around the world, China must be a 'responsible stakeholder' and work with the United States to continue to improve market access, intellectual property rights and business transparency."

In a November 10 statement, U.S. Trade Representative Susan C. Schwab said that the United States and Russia expect to conclude shortly bilateral negotiations on market access issues related to Russia’s accession to the WTO. The two sides hope to sign a bilateral agreement next week at the APEC meetings in Hanoi. Schwab stated that the parties have an agreement in principle and are finalizing the details. She added, “This agreement will mark an important step in Russia attaining membership in the WTO. It is a clear indication of Russia’s efforts to participate fully in and benefit from the rules-based global trading system.”

Commenting on WTO members’ approval of Vietnam’s accession to the Organization, U.S. Trade Representative Susan C. Schwab stated November 7 that “The United States is very pleased by today’s action in Geneva and welcomes Vietnam into the international trade community. The world will benefit from the inclusion of this rapidly-growing, dynamic economy in the rules-based trading system.” Schwab urged Congress to quickly approve Permanent Normal Trade Relations (PNTR) legislation “that will permit U.S. businesses, workers and consumers to benefit fully from Vietnam’s accession and to build deeper and stronger bilateral trade ties going forward.” Legislation to provide PNTR status to Vietnam was introduced to the U.S. Congress on June 13, 2006 and was approved by the Senate Finance Committee on August 1, 2006 on a strongly bipartisan basis.

On November 6, USTR announced its decision to improve Indonesia’s standing on the Special 301 Watch List after completion of an “Out-of-Cycle” review (OCR). This review, which was announced last spring, examined in detail the adequacy and effectiveness of intellectual property rights (IPR) protection in Indonesia. U.S. Trade Representative Susan C. Schwab said that the United States “is encouraged by the steps that Indonesia has taken to improve enforcement of intellectual property rights” and “urges Indonesia to build upon the foundation it has laid to make further progress on the protection of IPR…” While recognizing the progress Indonesia has made, the review also concluded that sustained efforts and continued progress on key IPR issues will be essential to avoid a future return to the Priority Watch List.

On November 7, the WTO General Council approved Vietnam’s membership agreement, which is now set to become the WTO’s 150th member. Vietnam now has to ratify the deal, and it will become a member 30 days after it has informed the WTO that it has ratified. The decision ends over 11 years of preparation, including eight years of negotiation. Commenting on the General Council’s decision, Director General Pascal Lamy stated, “Vietnam has shown how anchoring domestic reforms in the WTO can yield dramatic results.” Vietnamese Trade Minister Truong Dinh Tuyen said the negotiations for WTO membership closely accompanied his country’s economic reforms known as “doi moi”. He added, “It is these reforms that ensure Vietnam’s constant economic growth, forming a firm foundation for the accession as a whole.”

On November 3, U.S. Trade Representative Susan C. Schwab and Agriculture Secretary Mike Johanns applauded recent actions by Colombia and Peru to lift their BSE-related bans on U.S. beef and beef product imports. Schwab said that the United States “look(s) to other trading partners to similarly make trade decisions in accordance with science-based international standards.” In 2003, the United States exported a combined total of more than $4 million worth of beef and beef products to Colombia and Peru. The reopening of these two markets restores two-thirds of the market access for U.S. beef and beef products in South America.

On November 1, U.S. Trade Representative Susan C. Schwab applauded the entry into force of the U.S.-Uruguay Bilateral Investment Treaty (BIT), commenting that the agreement “…will strengthen commercial ties between Uruguay and the United States… bolster Uruguay’s economy, and provide protection for U.S. investors.” The U.S.-Uruguay BIT is the first BIT the United States has concluded since 1999, and is the first BIT concluded on the basis of the U.S. model BIT text, which was finalized in 2004. The model BIT text incorporates provisions also found in the investment chapters of U.S. free trade agreements and responds to investment negotiating objectives established by Congress in the Trade Promotion Act of 2002.

U.S. and Rwandan officials met for their first high-level meeting under the recently-signed United States-Rwanda Trade and Investment Framework Agreement (TIFA). The meeting was co-led by Deputy U.S. Trade Representative Karan Bhatia and Rwandan Minister of Commerce, Industry, Investment Promotion, Tourism, and Cooperatives Protais Mitali. The meeting provided an opportunity for U.S. and Rwandan officials to review the full scope of trade and investment relations between the two countries and to identify opportunities for further cooperation and attention. Among the topics discussed were eliminating tariffs and non-tariff barriers to trade; enhancing Rwanda’s use of opportunities available under the African Growth and Opportunity Act (AGOA); trade capacity building assistance; issues related to trade-related infrastructure; ways to enhance U.S.-Rwanda investment; and the WTO Doha Round of global trade negotiations.

During a U.S.-Afghan Business Matchmaking Conference in Washington October 31, Commerce Secretary Carlos M. Gutierrez said that the United States’ relationship with Afghanistan has expanded from security issues to a growing economic cooperation. Gutierrez said U.S. and Afghan businesses could work together “to contribute to the growth and stability of Afghanistan and strengthen both the U.S. and the Afghan economies.” He said that bilateral trade between the two countries grew 43 percent in 2005 and is up another 54 percent for the first eight months of 2006. The Secretary said his meeting with Afghan Minister of Commerce Mohammed Amin Farhang prior to the conference resulted in a three-point plan aimed at boosting Afghanistan’s economic growth. The plan calls for improving access to capital for small and medium-sized Afghan businesses, developing the country’s agricultural resources and targeting key export industries for investment.