October 2006 News

Bush Assures Dominican Republic's Leader on Free-Trade Pact

Speaking with Dominican Republic President Leonel Fernandez Reyna at the White House October 25, President Bush said the United States is working to implement the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) “as quickly as possible.” Bush congratulated Fernandez for the 9 percent Dominican economic growth in 2005 and said it is “in the interests of the United States that the Dominican Republic have a strong economy.” The President also said the two leaders discussed the need for multilateral institutions to help with the Dominican Republic’s cash flows and cash demands. President Fernandez said that his country is also working hard to “obtain a speedy implementation” of CAFTA-DR, and that monetary assistance from multilateral institutions can help “maintain the confidence in our countries and also to help the sustainability of our economies.”

View transcript of remarks by Presidents Bush and Fernandez

U.S. Commitment to Colombia Remains Strong, U.S. Official Says

As he began his October 24-26 visit to Colombia, Under Secretary of State for Political Affairs R. Nicholas Burns told reporters that the November 7 U.S. midterm elections, whatever their outcome, will not affect the United States’ strong support for Colombia. Burns said the Bush administration will ask Congress to maintain the current level of funding (about $600 million a year) to help Colombia fight narco-terrorists, to demobilize combatants in the Andean country's ongoing internal conflict, to reduce poverty and to enhance social justice. He stated that the United States wants to sign a U.S.-Colombia free-trade agreement, "and we're going to ask our Congress" to ratify that agreement "as soon as possible."  Burns said the Bush administration also will ask Congress to continue the Andean Trade Preference Act, "because we think that program has been beneficial to Colombia" and to the United States.

View USIS Washington File report

U.S., Korea Aiming for Free Trade Agreement by Early 2007

At the start of the fourth round of U.S.-Korea Free Trade Agreement (FTA) negotiations, Assistant U.S. Trade Representative Wendy Cutler stated that the parties are trying to conclude their negotiations by late 2006 or early 2007. Cutler announced that the U.S. was submitting improved offers on agricultural and industrial goods to signal its determination to make progress. She described the improved offers from the United States as accelerating the stages of tariff cuts amounting to more than $1.3 billion on textiles, $1 billion on other industrial goods and $135 million on agricultural goods -- the latter representing 60 percent of Korea's potential farm exports. Separately, Deputy U.S. Trade Representative Karan Bhatia discussed the benefits of an FTA with students at Korea's Yonsei University, where he rebutted arguments that the agreement will wipe out Korea’s agriculture sector “overnight.”

View USIS Washington File report

View transcript of Cutler’s remarks

View text of Bhatia’s remarks

USITC Finds Impact Of ATPA Imports Negligible

According to a U.S. International Trade Commission (USITC) report, the overall effect of imports under the Andean Trade Preference Act (ATPA), which affords preferential tariff treatment to most products of Bolivia, Colombia, Ecuador, and Peru on the U.S. economy and consumers continued to be negligible in 2005. The ATPA's goal is to promote the development of sustainable economic alternatives to drug crop production by offering alternative, legal Andean products broader access to the U.S. market. The four Andean countries are the source of the coca plants from which most of the world's cocaine is produced or are major transit areas for cocaine. Total U.S. imports from ATPA countries amounted to $20.1 billion in 2005, of which $11.5 billion, or 57 percent, entered under the ATPA. The value of U.S. imports that entered under the ATPA rose 37 percent in 2005, faster than the increase in total U.S. imports from the region and faster than the growth of U.S. imports from the world. The large increase primarily reflected an increase in the value of imports of petroleum-related products.

View USITC press release

U.S. Seeks To Balance Trade, Security Concerns on Mexico Border

On October 20, Assistant Secretary of Commerce for Market Access and Compliance David Bohigian told reporters that the United States is making a strong push to cut the "crossing time" of legitimate goods being brought across its border with Mexico. Noting that the crossing time for bringing goods between the U.S. city of Detroit and the Canadian city of Windsor has been cut almost in half, Bohigian said that goal is to achieve similar gains for moving goods across the Mexican border between Nuevo Laredo, Mexico, and Laredo, Texas, and at other land crossings, as well as making U.S. ports more efficient and secure. That goal will be one of the topics of Bohigian’s October 23 trip to Laredo and Nuevo Laredo before he meets with Mexican officials in Mexico City October 24. Bohigian said that when President Bush meets with Mexican President-elect Felipe Calderón on November 9, they will discuss such issues as promoting economic reform in Mexico, liberalizing Mexico's energy and telecommunications sectors and promoting the rule of law in Mexico.

View USIS Washington File report

Trade Pact Offers U.S., Nicaragua Opportunity on Economic Ties

In an October 19 videoconference with Nicaraguan journalists, Secretary of Commerce Carlos M. Gutierrez said that the United States and Nicaragua have an important economic relationship that is entering a new stage now that the U.S.-Central American Free Trade Agreement (CAFTA-DR) has entered into force, and the upcoming presidential elections present Nicaragua with an opportunity to enhance their economic ties or put them at risk. Gutierrez pointed out that 13 major U.S. companies have plans to invest approximately $240 million in Nicaragua, investment that will create about 13,000 jobs.  However, the Secretary cautioned, these and other investments could be contingent on the outcome of Nicaragua’s presidential balloting. Gutierrez said it is important that Nicaraguans understand and weigh the risks and rewards as they head to the polls next month. Mr. Gutierrez added that while the United States hopes to conclude free trade accords with Colombia, Peru and Panama in the near future, Nicaragua is among the relatively few nations currently with a free trade accord with the United States.  He said that Nicaragua and the United States should look to build on CAFTA, not revise or cancel the accord, as some Sandinistas have advocated.

View USIS Washington File report

U.S. Pledges $3 Million To Protect Intellectual Property

On October 11, the State Department announced that it will provide $3 million for a combined 13 bilateral and multilateral training and technical assistance projects aimed at protecting intellectual property rights (IPR). These funding agreements represent the latest in commitments totaling $8.5 million that the United States has made to fighting international property crimes since 2004. The projects will be administered by such U.S. Government (USG) bodies as the Commerce Department's Patent and Trademark Office and the Department of Justice. The largest project -– with nearly $727,000 in funding -- will target the economies of the Association of Southeast Asian Nations (ASEAN) -- Brunei Darussalam, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The projects were selected by the State Department’s bureaus of International Narcotics and Law Enforcement Affairs and Economic and Business Affairs in consultation with U.S. missions around the world, Congress, other segments of the USG, the World Intellectual Property Organization and industry representatives. Serious consideration was given to countries or economies listed on a 301 "priority watch list" of USTR. Watch list countries and economies are those USTR has determined do not protect IPR adequately.

View USIS Washington File report

U.S.-Canada Softwood Lumber Agreement Enters into Force

On October 12, U.S. Trade Representative Susan C. Schwab announced the entry into force of the U.S.-Canada Softwood Lumber Agreement. As a result, both the United States and Canada will begin to implement their obligations under the agreement. For Canada, based on current market prices for softwood lumber, this will require the immediate collection of an export tax. With respect to the United States, this will result in revocation of the antidumping and countervailing duty orders on softwood lumber from Canada, an end to the collection of duty deposits on imports of Canadian softwood lumber, and the initiation of the process to refund duty deposits currently held by U.S. Customs and Border Protection. Ambassador Schwab also announced plans for the disbursement of funds to advance meritorious initiatives in the United States as outlined by the agreement. The three meritorious initiatives identified by the agreement include: (1) assistance for timber-reliant communities; (2) low-income housing and disaster relief and; (3) promotion of sustainable forest management practices.

View USTR press release

Bush Reaffirms Commitment to Peruvian Trade Agreement

During his October 10 meeting with Peruvian President Alan Garcia at the White House, President Bush reaffirmed his commitment to securing approval of the U.S. Congress for the U.S.-Peru Trade Promotion Agreement (PTPA) "as quickly as possible." According to a joint statement issued after the two leaders met October 10, the PTPA has a "central role" to play in "strengthening bilateral ties while leveling the trade playing field, spurring job creation, and reducing poverty and inequality." The agreement is intended to expand economic opportunities and raise living standards in Peru as well as promote stability in the Andean region. Speaking through a translator, President Garcia said he is “very satisfied” with President Bush’s pledge to work with the U.S. Congress on the PTPA.  He described free trade as a tool in Peru’s fight against poverty and its efforts to strengthen equality.

Report on Trade Barriers to Exporting Greenhouse Gas Intensity Reducing Technologies

View the text of USTR’s Report on Trade-Related Barriers to the Export of Greenhouse Gas Intensity Reducing Technologies, which identifies trade barriers that U.S. exporters of greenhouse gas intensity reducing technologies (GHGIRTs) face in the top 25 greenhouse gas emitting (GHG) developing countries. This report also describes the steps the United States is taking to reduce these and other barriers to trade in GHGIRT products and services and create new market opportunities for U.S. technology workers and companies. As identified in this report, high tariffs and other trade and investment barriers in developing countries impede access to these important technologies. By reducing the prices of these technologies through substantial reduction or elimination of import tariffs and specific non-tariff barriers, developing countries can take concrete and effective action to improve access to products vital for combating pollution, reducing GHG emissions and meeting sustainable development goals.

U.S. Announces Favorable Ruling in WTO Case on Agricultural Biotechnology

On September 29, U.S. Trade Representative Susan C. Schwab and Agriculture Secretary Mike Johanns announced that the WTO has ruled in favor of the United States, Argentina, and Canada in their WTO case against the EU over its illegal moratorium on approving agricultural biotech products and unjustified EU member-state bans of previously approved products. "The WTO has ruled in favor of science-based policymaking over the unjustified, anti-biotech policies adopted in the EU," Ambassador Schwab said. "After eight years of legal wrangling and stalling by Europe, we are a step closer to clearing barriers faced by U.S. agricultural producers and expanding global use of promising advances in food production." Despite the EU’s moratorium, there is considerable support for agricultural biotechnology within the EU. The United States looks forward to working with European trading partners to enhance the availability of this technology to farmers and consumers throughout the world.

View USTR press release

Afghan President Karzai Promotes Investment During U.S. Visit

During a September 26 forum on Afghan business opportunities at George Washington University, Afghan President Hamid Karzai said that his country “is a business place” despite ongoing security challenges. He noted that his administration has established a “one-stop shop” for investors that cuts bureaucratic delays to a minimum. He highlighted the need for foreign aid to help rebuild the country, infrastructure, particularly its roads and health and social systems.” Secretary of Commerce Carlos M. Gutierrez, who also attended the forum (which the Commerce Department helped to organize), said Karzai had "captured the imagination of the world" because of the market-friendly policies his government implemented to attract foreign capital and investment. Noting that trade between the United States and Afghanistan has increased 200 percent over the past year, Gutierrez said there is "great potential down the road" for expanding Afghan exports to the U.S. market.

View USIS Washington File report

View text of Secretary Gutierrez’s remarks