September 2006 News

USTR Schwab’s Statement on President’s Signing of U.S-Oman FTA Implementing Legislation

In a September 26 statement, U.S. Trade Representative Susan C. Schwab called President Bush’s signing into law of the U.S.-Oman Free Trade Agreement (FTA) “good news for the United States, Oman, and our efforts to promote economic opportunity in the Middle East.” She said that the FTA “is another major step forward in implementing President Bush’s initiative to create a Middle East Free Trade Area (MEFTA) by 2013… and builds on existing agreements with Israel, Jordan, Morocco, and Bahrain."

Bush Administration Releases Report On Intellectual Property Enforcement And Protection

On September 28 the Bush Administration released the 2006 Report to the President and Congress on Coordination of Intellectual Property Enforcement and Protection. The report sets forth the actions and initiatives that the U.S. government has taken over the past year to combat the rising tide of global counterfeiting and piracy, and notes the importance of these efforts because of the critical role intellectual property (IP) plays in the country’s economic strength and the health and safety of consumers. “Protecting the ideas and technology of U.S. businesses is a critical task, and it is clearly on the front burner for the Bush Administration. We are devoting more time and resources to keep the pressure on the bad guys,” said Commerce Secretary Carlos M. Gutierrez. “There is much we’ve achieved in the past year, but we cannot be satisfied. Complacency has no place in today’s global economy. So I look forward to working with businesses to keep America competitive in the years ahead.” The report was produced by the National Intellectual Property Law Enforcement Coordination Council (NIPLECC), which is composed of representatives from the Departments of Commerce, Homeland Security, Justice and State, the Office of the U.S. Trade Representative, and the U.S. Coordinator for International Intellectual Property Enforcement.

View Commerce press release

View text of report

U.S.-Indonesia Agreement to Prevent Illegal Transshipments of Textiles and Apparel

On September 26, U.S. Trade Representative Susan C. Schwab and Indonesia’s Trade Minister Mari Pangestu signed a Memorandum of Understanding (MOU) on cooperation to prevent illegal transshipment of textiles and apparel through Indonesia to the United States. The MOU is the latest achievement in ongoing work under the bilateral U.S.-Indonesia Trade and Investment Framework Agreement (TIFA), which provides the two sides with a forum to identify, raise, and resolve matters that might otherwise hinder the development of bilateral trade and investment ties. The ceremony followed a meeting between Ambassador Schwab, Trade Minister Pangestu and Indonesian Vice President Jusuf Kalla that focused on the bilateral trade relationship and opportunities to expand economic ties between the United States and Indonesia, the largest nation in the Southeast Asia region. Discussions included intellectual property rights enforcement, removal of barriers to exports of U.S. fruits to Indonesia, and reviving the WTO Doha Round.

View USTR press release

USTR Official Discusses U.S.-Korea Free Trade Agreement

View the text of Deputy U.S. Trade Representative Karan Bhatia’s remarks to the Center for Strategic and International Studies’ conference on “The United States and Korea 2006,” where he discussed the rationale for the United States-Korea Free Trade Agreement (FTA). He stated that the U.S. and Korea are negotiating the FTA “because free trade agreements are truly win-win situations, creating significant new economic opportunities for both sides.” He added that the agreement ‘will allow each of our nations to continue to focus on producing and exporting the products, goods, and services that each does best. And it will pay economic dividends.”

USTR Schwab Announces U.S. – EU Agreement on Services

On September 25, U.S. Trade Representative Susan Schwab announced that the U.S. and EU had reached an agreement on compensation for modifications to the EU’s WTO services commitments. The agreement represents the successful conclusion of compensation negotiations with the EU for modifications to their commitments, due to EU enlargement, under the General Agreement on Trade in Services (GATS). The United States worked closely with Brazil, Hong Kong, Japan, Canada and 12 other WTO Members to negotiate this compensation package with the EU, which provides new benefits to suppliers of services in the $8.6 trillion European services market. Schwab said that the agreement “… demonstrates the value of the multilateral process and how the U.S. and other WTO Members continue to work constructively together in that forum."

View USTR press release

Schwab-Johanns Press Briefing in Australia on Doha Round Negotiations

View the transcript of the press briefing by U.S. Trade Representative Susan Schwab and Agriculture Secretary Mike Johanns in Cairns, Australia on September 21, where they met with members of the Cairns Group regarding prospects for reviving the WTO Doha negotiations.

Commerce Secretary Gutierrez’s Comments on New U.S.-China Strategic Economic Dialogue  

Commenting on the U.S.-China Strategic Economic Dialogue, announced September 20, Commerce Secretary Carlos M. Gutierrez stated, “This announcement implements an important agreement reached by President Bush and President Hu Jintao to establish such a high level bilateral dialogue to promote economic cooperation and the growth of U.S.-China relations.” The Secretary said that "China is one of America's fastest-growing export markets, representing billions of dollars in sales for U.S. companies.” Secretary Gutierrez will be leading a business development mission to China in November “to further advance our growing economic relationship and further open China 's market to U.S. exports."

View text of Secretary Gutierrez’s statement

Commerce Secretary Gutierrez Comments on Senate Passage of U.S.-Oman Free Trade Agreement

In a September 19 statement, Commerce Secretary Carlos M. Gutierrez issued a statement praising the U.S. Senate for passing the House version of the United States-Oman Free Trade Agreement (FTA). According to the Secretary, “The Oman FTA is a key part of this Administration's regional and global efforts to opening markets for American companies around the world.” Oman is the fifth country in the Middle East and North Africa to negotiate a free trade agreement with the United States and is an integral component of the President's Middle East Free Trade Area (MEFTA) initiative.

WTO Panel Finds for United States in "Zeroing" Dispute with Japan

On September 20, U.S. Trade Representative Susan Schwab announced that a WTO panel has found in favor of the United States on Japan’s challenge to the United States’ use in antidumping administrative reviews of "zeroing" – a technique used in measuring alleged incidents of selling below fair value, or dumping. In a previous dispute, the Appellate Body found that the WTO Antidumping Agreement prohibits zeroing in such reviews. The panel also concluded that zeroing is permitted in some circumstances in antidumping investigations. Noting that this marks the second time a WTO panel has found the Antidumping Agreement does not prohibit zeroing in administrative reviews, Schwab called the Appellate Body’s analysis “a model for how WTO adjudicatory bodies should do their job, demonstrating a solid commitment to their responsibility first and foremost to apply the WTO agreements as written."

View USTR press release

United States, China Create Strategic Economic Dialogue

On September 20, President Bush announced that the United States and China have created an overarching, bilateral framework to review economic issues between the two countries. In his statement, the President said that he and China’s president, Hu Jintao, had discussed the “importance of maintaining strong and mutually beneficial U.S.-China economic relations" and the need to establish such a framework. Bush said Treasury Secretary Henry Paulson would chair the U.S. side of the dialogue with support from Allan Hubbard, the director of the National Economic Council. According to a joint statement, U.S. and Chinese representatives intend to meet twice a year in alternate capitals, and that existing bilateral dialogues and consultation mechanisms -- such as the Joint Commission on Commerce and Trade -- will remain unchanged.

View text of President’s statement

View text of U.S.-Chinese statement

U.S. Report Hails Strategic Importance of Canada to United States

According to a U.S. Department of Agriculture report, Canada has become the most important trading partner of the United States, accounting for almost 20 percent of all U.S. trade. The report, which was released September 15 by USDA's Economic Research Service, said U.S. exports to Canada, measured as a share of the U.S. gross domestic product, have more than doubled since 1960. In 2004, U.S. exports of goods and services to Canada exceeded combined U.S. exports to Mexico and Japan, the second- and third-largest U.S. export markets. The report said the United States depends increasingly on Canada for supplies of strategic resources such as energy, metals and lumber, and that Canada is the largest supplier of energy to America in the form of oil and oil products, natural gas and electricity. Canada’s favorable long-term economic growth, according to the report, will continue to receive a boost from expected strong U.S. growth in its gross domestic product (at 3 percent or more) for the remainder of 2006 and 2007.

View USIS Washington File report

U.S. and Mauritius Sign Agreement to Strengthen and Expand Trade Relations

On September 18, the United States and Mauritius signed a Trade and Investment Framework Agreement (TIFA) aimed at strengthening and expanding U.S.-Mauritius trade ties. The TIFA will provide a formal mechanism to address bilateral trade issues and will help enhance trade and investment relations between the two countries. "Mauritius’ experience demonstrates how trade and investment can fuel economic growth and development," Ambassador Bhatia said. "The Government of Mauritius has an impressive track record on democracy, economic growth, openness to foreign direct investment, economic diversification, and the expansion of trade."

View USTR press release

Free Trade Vital to Latin American Economies, Says U.S. Official

On September 15, Assistant U.S. Trade Representative for the Americas Everett Eissenstat addressed a Miami Herald conference regarding Latin America’s competitiveness in a global economy. He said it is clear in recent years that "…countries [that] have been willing to undertake free-market reforms and pursue regional integration, particularly through ambitious trade agreements with the United States, have emerged as strong competitors both at the regional level and in the global marketplace." Citing trends that point to the benefit of a free-market approach, Eissenstat noted that while “there isn't a simple, straightforward answer" that will guarantee success, the removal of trade barriers is a prerequisite for sustained economic growth. Because free-trade pacts now have a proven track record, "other nations in the hemisphere are seeking to follow a similar path as their regional neighbors" by negotiating their own trade agreements with the United States, he added. 

View USIS Washington File report

USITC Begins Assessment of U.S.-Colombia TPA

The U.S. International Trade Commission (USITC) announced that it has instituted an investigation to assess the likely impact of a comprehensive bilateral trade promotion agreement (TPA) that the President has proposed to establish with Colombia. President Bush notified the Congress on August 24, 2006, of his intent to enter into the TPA with Colombia. USITC will prepare a report that assesses the likely impact of the proposed agreement on the U.S. economy as a whole and on specific industry sectors and the interests of U.S. consumers. The Commission will hold a public hearing in connection with the investigation on October 5, 2006. For information about appearing at the hearing or preparing a written submission for the record, please consult the USITC press release.

Mexico Revokes Antidumping Duties on U.S. Long Grain White Rice

On September 14, U.S. Trade Representative Susan C. Schwab welcomed Mexico’s revocation of antidumping duties on U.S. long grain white rice. Mexico took this action after the WTO agreed with the United States that the duties were contrary to WTO rules. Schwab commented, “The action by Mexico is a great result for U.S. rice farmers, and another example of how our trade agreements and their enforcement serve U.S. interests." In addition to finding against the antidumping duties, the WTO also found that several provisions of Mexico’s antidumping and countervailing duty law are inconsistent with the WTO Antidumping Agreement and the WTO Agreement on Subsidies and Countervailing Measures. Mexico has until December 20, 2006 to implement the WTO’s findings against its law.

View USTR press release

U.S. Requests WTO Panel in Challenge of China’s Treatment of U.S. Auto Parts

U.S. Trade Representative Susan C. Schwab announced on September 15 that the United States, EU, and Canada will be requesting that the WTO establish a dispute settlement panel regarding China’s treatment of U.S. auto parts. China is imposing charges that unfairly discriminate against imported auto parts and discourage auto manufacturers in China from using imported auto parts in the assembly of vehicles. The United States believes that these charges are inconsistent with China’s WTO obligations. Schwab stated, "While we remain open to settling this dispute, China’s current stance leaves us no choice but to proceed with our WTO case. We are committed to providing a level playing field for U.S. exporters to China and, as we have made clear, we will not hesitate to pursue dispute settlement if necessary."

View USTR press release

U.S. Senate Approves U.S. - Uruguay Bilateral Investment Treaty

On September 12, 2006, the U.S. Senate approved a resolution of advice and consent for the United States-Uruguay Bilateral Investment Treaty (BIT). The countries signed the treaty in November 2005, and the Government of Uruguay completed its domestic ratification procedures in December 2005. The treaty will enter into force 30 days after the exchange of instruments of ratification. The investment protections in the treaty will offer current and future U.S. investors in Uruguay a more stable and predictable legal and regulatory environment, promoting increased investment in Uruguay and greater two-way trade. The United States is Uruguay’s largest trading partner, and the stock of U.S. foreign direct investment in Uruguay was $533 million in 2004 (latest data available).

View USTR press release

U.S. Official Says North American Trade Pact Aids All Signatories

In a September 11 statement to the Senate Finance Committee, Deputy Assistant U.S. Trade Representative for North America John Melle said that, 12 years after implementation of the North American Free Trade Agreement (NAFTA) began, the U.S., Canada and Mexico have become better customers for each other’s goods and services, and also more effective trading partners. Even though the NAFTA contribution to each nation's broader economic performance cannot be measured precisely, Melle told legislators that Mexico's gross domestic product (GDP) has grown 40 percent since 1993 and Canada's real GDP expanded nearly 50 percent during this period. In addition to these economic successes, Melle said that NAFTA remains a vibrant agreement in part because it has responded to changes in production methods and sourcing methods. Looking ahead, Melle said there still are NAFTA commitments that must be implemented; the remaining tariff reductions between the United States and Mexico will be made January 1, 2008.  Other challenges the NAFTA partners must confront include the changes in global trade since NAFTA entered into force. 

View text of Melle’s statement

U.S. and Canada Sign Softwood Lumber Agreement

On September 12, U.S. and Canadian officials signed a softwood lumber agreement (SLA) that aims to end a two-decade trade dispute and enhance the competitiveness of the North American lumber industry. Commenting on the agreement, U.S. Trade Representative Susan Schwab stated, “With this signing and implementation of this landmark agreement, we hope to bring to a close over 20 years of litigation -- and the market instability and political tension that have often accompanied it.” As part of the seven-year SLA, the United States and Canada will end all litigation over trade in softwood lumber and unrestricted trade will occur in favorable market conditions. The SLA also will include provisions to address potential Canadian import surges, and provide for effective dispute settlement, Schwab said. Another provision of the SLA requires that $450 million of the approximately $5.3 billion in deposits that have been collected under the anti-dumping and countervailing duty orders on Canadian softwood lumber be used to advance meritorious initiatives in the United States. 

View text of Schwab’s statement

Korea Resumes Importation of U.S. Boneless Beef

Commenting on Korea’s announcement that it will resume imports of U.S. boneless beef from cattle less than 30 months of age, Agriculture Secretary Mike Johanns stated, “Trade resumption in boneless beef is the first step in normalizing trade of beef and beef products with Korea.  We look forward to expanding our access to the Korean market and other export markets to achieve trade that is consistent with international guidelines.” In 2003, the United States exported more than $814 million worth of beef to Korea, with boneless beef accounting for $449 million, according to USDA data, before Korea banned U.S. beef imports after a case of bovine spongiform encephalopathy (BSE, or “mad cow” disease) was found in a single cow of Canadian origin in the U.S.

View USDA press release

View USDA fact sheet

U.S. Agency Helping To Implement Central American Trade Pact

The U.S. Trade and Development Agency (USTDA) recently awarded grants totaling $1.2 million to help implement the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) and to build trade capacity in countries that are parties to the pact. The signatories of CAFTA-DR include Nicaragua, Honduras, Guatemala, El Salvador and Costa Rica, in addition to the Dominican Republic and the U.S.  The new grants will "support priority transportation infrastructure projects in the region and are the result of the first phase of the CAFTA-DR Trade Integration Initiative, which was launched in October 2005," according to an agency press release. U.S. firms will have opportunities to provide technical assistance under the new grants, said the USTDA.

View USTDA press release

Commerce Secretary Gutierrez Praises U.S. Law Enforcement Efforts To Protect Intellectual Property

Noting the break-up of one of the largest counterfeit merchandise smuggling schemes uncovered in recent U.S. history, Commerce Secretary Carlos M. Gutierrez “applaud(ed) the Department of Homeland Security (DHS) and the Department of Justice (DOJ) for their ongoing efforts to protect American intellectual property.” In this operation, federal law enforcement officials seized approximately $16 million worth of fake products including sneakers, apparel and other goods. He added, “The disruption of this major criminal operation demonstrates the commitment they have made to IP protection and the effectiveness of their efforts.” Commerce works closely with DOJ and DHS to promote strong IP protection in the U.S. and internationally. The three agencies collaborate through the National Intellectual Property Law Enforcement Coordination Council (NIPLECC) and work to fulfill the priorities laid out by the Bush Administration's Strategy Targeting Organized Piracy (STOP!).

View Commerce press release

USTR’s Bhatia Addresses Recording Industry on Trade Policy

View the text of Deputy U.S. Trade Representative Karan Bhatia’s September 6 remarks to the National Academy of Recording Arts and Sciences. Bhatia discussed the Administration’s strategy for building a “critical infrastructure” that has at least three components: (1) market access, (2) rules for secure e-commerce in markets around the world, and (3) intellectual property protection. Bhatia discussed recent USTR efforts to bolster IPR enforcement, which include increasing staff and funding for intellectual property initiatives. He also noted that U.S. Trade Representative Susan Schwab recently established a new Intellectual Property Office staffed by experienced IP experts, including a Chief IP Enforcement Negotiator.

Schwab Moves to Strengthen Focus on Innovation and Southeast Asia

On September 6, U.S. Trade Representative Susan Schwab announced a reorganization of two USTR offices to enhance the agency’s focus on innovation and to support its stepped-up efforts in Asia. The realignment consists of expanding the responsibilities of the recently established Office of Intellectual Property to include innovation policy issues related to the pharmaceutical and medical technology industries. These issues had previously been handled by the Southeast Asia Office. By expanding the portfolio and leveraging the resources of the office, which will now be called the Office of Intellectual Property and Innovation, USTR recognizes the critical importance of innovation to the enhanced productivity and future growth of the U.S. economy. Deepening trade relations with Asia also is a top USTR priority. The shift of pharmaceutical policy from the Office of Southeast Asia and the Pacific to the Office of Intellectual Property and Innovation will allow the Southeast Asia Office to concentrate its efforts on other issues, which include negotiating FTAs with Thailand and Malaysia.

View USTR press release

U.S.-Kuwait Trade and Investment Framework Agreement Council Meeting

On September 5, USTR hosted the second meeting of the U.S.-Kuwait Trade and Investment Framework Agreement (TIFA) Council. The TIFA Council meeting was co-chaired by Assistant U.S. Trade Representative Shaun Donnelly and Kuwait’s Trade Minister, Falah al-Hajiri, and included representatives from a broad range of U.S. Government agencies and Kuwaiti ministries. Commenting on the meeting, U.S. Trade Representative Susan Schwab stated, “We hope Kuwait’s commitment to continued trade liberalization and foreign investment will set the stage for deeper economic engagement between our two countries.” Since it was signed by both governments in 2004, the TIFA has established a formal ministerial dialogue between the United States and Kuwait that allows the two countries to identify jointly concrete steps for deepening trade and investment relations. The two delegations discussed a number of areas of mutual interest, including their respective climates for foreign investment, legislative and regulatory issues affecting international trade, and the protection of intellectual property rights.

View USTR press release