January 2007 News

U.S. Businesses Pursue Different Strategies To Fight Counterfeiters

To help businesses protect consumers from fake goods, on January 24 the U.S. Chamber of Commerce and the Coalition Against Counterfeiting and Piracy (CACP), with the cooperation of the U.S. Department of Commerce, published a set of guidelines and case studies titled No Trade in Fakes: Supply Chain Tool Kit. Deputy Assistant Secretary of Commerce for Trade Agreements and Compliance Stephen Jacobs noted during the program that counterfeit products continue to make their way into seemingly legitimate retail outlets. Citing U.S. Customs and Border Protection data indicating an 83 percent increase in the number of seizures at American borders of counterfeit goods and an overall 67 percent increase in their value in 2006 over 2005, Jacobs stated “clearly we have a problem.” At the launch of the tool kit, representatives from the Chamber and U.S. companies discussed their efforts to combat counterfeiting. The Chamber’s Brad Huther detailed cooperation with Interpol to create a global intelligence database for tracking and prosecuting commercial counterfeiters.

View USIS Washington File report

Uruguay and United States Sign Trade and Investment Framework Agreement

On January 25, Uruguay and the United States signed a Trade and Investment Framework Agreement (TIFA). In signing the agreement, both parties reaffirmed their commitment to expand economic opportunities between Uruguay and the United States while simultaneously coordinating their efforts to promote greater trade liberalization through the WTO. Through the agreement, the parties established a Council on Trade and Investment. The agreement sets forth a work program covering a host of different matters, including facilitation and liberalization of bilateral trade and investment, cooperation on sanitary/phytosanitary measures, intellectual property rights and government procurement, as well as any other matters as the Council may decide. Technical teams from both sides will start to exchange proposals in order to prepare for the first meeting of the Council on Trade and Investment in Washington in April 2007.

View USTR press release

Schwab to Press for Doha Progress at World Economic Forum

During the January 25-27 World Economic Forum meetings in Davos, Switzerland, U.S. Trade Representative Susan C. Schwab will continue to consult with her counterparts and other trade officials in order to advance the WTO’s Doha Development Round, as well as discuss bilateral issues. In addition to meeting one-on-one with trade ministers to discuss potential ways forward on the Doha Round, Ambassador Schwab will participate in a number of World Economic Forum panel discussions.  During these discussions, Schwab will stress that the success of the Doha Development Agenda depends on creating significant new trade flows and that these new trade flows can come about only with meaningful reductions on tariffs and other barriers to trade in agriculture, manufactured goods, and services.

View USTR press release

USITC Investigation Concerning Possible Modifications to GSP

The U.S. International Trade Commission (USITC) is seeking input for a newly initiated investigation (requested by USTR) concerning possible modifications of the Generalized System of Preferences (GSP). The Commission will provide advice as to the impact of granting waivers of the competitive need limits for the following countries and products: Argentina for lithium carbonates and calcium silicon ferroalloys; for Brazil for refined copper cathodes and refined copper wire with a maximum cross-sectional dimension over 6mm but not over 9mm; for India for cucumbers, including gherkins, certain hand-hooked carpets and other textile floor coverings, and certain color television reception apparatus; and for Thailand for new pneumatic radial bus or truck tires. The USITC will hold a public hearing in connection with the investigation at 9:30 a.m. February 22, 2007. For information about appearing at the hearing and/or preparing a written submission, please consult the USITC press release.

Bulgaria and Romania Lose GSP Eligibility Upon EU Accession

View the text of a Federal Register notice which advises that, upon becoming EU Member States on January 1, 2007, Bulgaria and Romania are no longer designated as beneficiary developing countries under the U.S. Generalized System of Preferences (GSP) program as of that date. For more information, please consult the Federal Register notice.

Request for Public Comments on 2005 WTO Ministerial Decision on Duty-Free, Quota-Free Market Access for LDC’s

View the text of a Federal Register notice from the Trade Policy Staff Committee seeking public comments on considerations relating to decisions adopted by WTO members at the 6^th ministerial conference in December 2005 on duty-free, quota-free market access for least-developed countries (LDC’s). The TPSC is seeking comments from the public by March 15, 2007, on the full range of issues that may affect implementation of this decision. For information on submitting comments, please consult the Federal Register notice.

2006 GSP Review for Products and Country Practices

USTR has received petitions in connection with the 2006 Generalized System of Preferences (GSP) Annual Review to modify the list of products that are eligible for duty-free treatment under the GSP program and to modify the GSP status of certain GSP beneficiary developing countries because of country practices. This Federal Register notice announces the product and country practice petitions that are accepted for further review in the 2006 GSP Annual Review, and sets forth the schedule for comment and public hearing on these petitions, for requesting participation in the February 16, 2007 public hearing, and for submitting pre-hearing and post-hearing briefs. Pre-hearing briefs and requests to appear at the GSP Subcommittee public hearing must be submitted by February 2, 2007. For more information, including other significant dates and how to submit briefs and requests to appear at the hearing, please consult the Federal Register notice.

U.S. Trade Representative Schwab Optimistic on Future of Doha Trade Talks

After meeting with WTO Director General Pascal Lamy in Geneva on January 12, U.S. Trade Representative Susan Schwab told reporters she is more optimistic than she has been "in many months" that members of the WTO will conclude the Doha round of trade negotiations successfully. Schwab met with Lamy in advance of the January 24-28 World Economic Forum meetings in Davos, Switzerland, where a number of key trade ministers expect to meet to address issues hampering the completion of the Doha round. In recent months Schwab has held talks with trade representatives from Brazil, the EU and Japan, and she noted that many of her counterparts have taken similar action. Schwab said her optimism for success of the Doha round comes from the fact that parties are once again communicating. Schwab said she expects the bilateral talks that have taken place in recent months will continue in the wake of the Davos meetings as countries continue to work out their differences.

View USIS Washington File report

Commerce Secretary Gutierrez’s Statement on Vietnam's Entry Into WTO

In a January 11 statement, Commerce Secretary Carlos M. Gutierrez said "The Administration welcomes Vietnam's entry into the WTO," which he called “a significant step forward for our relationship with Vietnam.” As it becomes the 150th member of the WTO, Vietnam will reduce tariffs on over 94 percent of industrial and consumer goods, with tariffs ranging from 0 to 5 percent in several key sectors, including construction equipment, pharmaceuticals and aircraft. Vietnam's accession to the WTO will also remove significant non-tariff barriers. U.S. service suppliers will enjoy improved market access in Vietnam in many significant sectors, including telecommunications, financial services, distribution, and energy services. The Secretary noted that the Administration will continue to vigorously enforce U.S. trade laws to make sure Americans are treated fairly, and will continue to work with all stakeholders to set up a textile and apparel monitoring system to monitor unfair trade practices.

View text of Secretary’s statement

Request for Comments: Identification of Countries Denying Adequate IPR Protection

USTR is requesting written comments from the public concerning its requirement to identify countries that deny adequate and effective protection of intellectual property rights or deny fair and equitable market access to U.S. persons who rely on intellectual property protection. This is being done under Section 182 of the Trade Act of 1974, which is commonly referred to as the ``Special 301'' provisions in the Trade Act. In addition, USTR is required to determine which of those countries should be identified as Priority Foreign Countries. USTR requests written comments from the public concerning the acts, policies, and practices relevant for this review under Section 182 of the Trade Act. Submissions must be received on or before 10:00 a.m on Monday, February 12, 2007. For information on responding, please consult the Federal Register notice

U.S., EU Trade Officials Optimistic on Global Trade Accord

After meeting with her EU counterpart, Trade Commissioner Peter Mandelson, on January 8, U.S. Trade Representative Susan Schwab said that the United States and European Union are making progress in efforts to revive the Doha Round of WTO trade negotiations. Schwab told reporters that a convergence of U.S. and EU positions constitutes a “welcome change” in the discussions between the two trading partners. She cautioned, however, that any potential U.S.-EU deal on agricultural issues would not guarantee a successful conclusion of the Doha round without other countries making concessions to open up their markets to foreign goods. Mandelson said that his meetings with President Bush and Democratic congressional leaders gave him confidence that pushing the WTO negotiations forward is possible within a narrow time frame, which he defined as the first quarter of 2007, and that Democrats would support an ambitious Doha deal. Earlier in the day, Bush and European Commission President Jose Manuel Barroso encouraged their trade officials to resolve differences that have prevented a successful Doha agreement. The two sides have differed mostly over farm subsidies.

View USIS Washington File report

View transcript of Bush-Barroso remarks

President Bush Committed to Free-Trade Agenda, Secretary Gutierrez Says

During his remarks to the U.S. Chamber of Commerce on January 5, Secretary of Commerce Carlos M. Gutierrez said that President Bush will seek common ground with the 110th Congress but remains committed to his open-trade policy and will push for new free-trade agreements (FTAs). Since President Bush took office, the United States has implemented free trade agreements with 10 countries and negotiated market opening agreements with four more. The Secretary stated, “These agreements have boosted our economy and provided greater access for exports of American goods and services, and greater choice to millions of American consumers.” Mr. Gutierrez said that U.S. exports have increased at an annual rate of 5.8 percent since 2001. The Secretary added that the United States remains committed to the further opening of international markets and is “working hard” on advancing the Doha Round of WTO trade negotiations, and mentioned the importance of extending the presidential trade promotion authority.

View text of Secretary’s remarks

USTR Schwab Hails Mexico's Revocation of Sweetener Tax

On January 5, U.S. Trade Representative Susan Schwab said that the United States welcomes the decision of Mexico’s government to repeal a tax on beverages made with certain sweeteners. Schwab said that the repeal “will help ensure a smooth transition to full implementation of the NAFTA [North American Free Trade Agreement] on January 1, 2008, and benefit sweetener industries on both sides of the border.” Mexico took the action in response to a WTO ruling that the 20 percent tax on high-fructose corn syrup (HFCS), as well as soft drinks and other beverages made with it, discriminates against imports of HFCS from the United States and thus breaks WTO rules. Beverages which were made with Mexican cane sugar that were almost exclusively a domestic product were exempt from the taxes. The beverage tax was imposed in 2002 as part of a long-running dispute between the two countries over sugar trade under NAFTA.

View USIS Washington File report

President Bush Optimistic on Achieving WTO Trade Deal

When he met with German Chancellor Angela Merkel on January 4, President Bush said that the United States remains committed to the Doha Round of WTO talks that are designed to lower international trade barriers. He added that, even though obstacles remain, “I believe we can get a deal done.” The President added that trade “is the best way to help poor nations develop their economy so that people can realize the benefits of wealth moving throughout their society.” Merkel said Germany, which has assumed presidency of the European Union, wants to cooperate “very closely” with the United States on the Doha trade talks.

View USIS Washington File report