May 2007 News

United States Requests WTO Panel in Challenge of India’s Duties on Wine and Spirits and Other U.S. Imports

On May 25, the United States requested that the WTO establish a dispute settlement panel regarding customs duties that India imposes on alcoholic beverages and other imports from the United States. In her announcement of the request, U.S. Trade Representative Susan Schwab stated the U.S. Government “…believe(s) the layers of customs duties India applies to U.S. products, in particular to wine and distilled spirits, are not in line with its WTO commitments.” On top of its basic customs duties, India imposes an “additional duty” of 20 to 75 percent ad valorem on imports of beer and wine and from 25 to 150 percent ad valorem on imports of distilled spirits. In addition, India applies an “extra additional duty” of four percent, resulting in aggregated duties on these imports that range from approximately 150 to 550 percent. In the WTO, India committed that its tariffs on beer, wine and spirits would not exceed 150 percent. The additional duty and extra additional duty also apply to other imports from the United States, such as

dairy products and, in some cases, also result in customs duties that exceed India’s WTO bound rates. Between 2000 and 2005, U.S. exports of wine and spirits world-wide averaged approximately $630 million and $633 million, respectively, making the United States the world’s sixth largest exporter of wine and third largest exporter of spirits.

WTO Begins Negotiations with Iraq for Membership

For the first time since Iraq's application in 2004, the Working Party met on May 25 to discuss and examine Iraq's trade legislation and its conformity to WTO principles. Iraq's Trade Minister, H.E. Dr. Al-Sudani, stated that “Iraq's joining the WTO is an important step towards its integration into the global trading system and restores its position within the international community after decades of isolation.” He emphasized that WTO accession was essential to integrate into the global economy and a priority for his Government. Members strongly supported Iraq's accession and welcomed the commencement of multilateral work in Geneva, and acknowledged Iraq’s progress in passing or drafting new legislation to comply with WTO rules. Iraq called for technical assistance to help the country accede the WTO and members stated their willingness to help Iraq advance the accession process in every possible way. For its next steps, Iraq will prepare documents on agriculture, services, technical barriers to trade, sanitary and phytosanitary issues and intellectual property. It will also prepare a general legislative action plan providing members with a state of play of current and future legislation.

View WTO news item

U.S.-Korea FTA: Opportunities for Agriculture

View the USTR fact sheet on the opportunities for agricultural exports created by the U.S.-Korea Free Trade Agreement. Removing trade barriers between the United States and the Republic of Korea will create important new export opportunities for U.S. farmers, ranchers, and processors. U.S. agricultural exports to Korea have averaged about $3 billion annually in recent years, making Korea our 6^th largest agricultural export market.

USPTO Official Speaks on Intellectual Property Counterfeiting and Piracy at Small Business Summit

On May 24, United States Patent and Trade Office Deputy Under Secretary Margaret Peterlin warned in remarks at the U.S. Chamber of Commerce Small Business Summit that piracy and counterfeiting around the world are on the rise. She said that intellectual property (IP) -based companies, which include many small businesses, are the most vulnerable. American IP is estimated to be worth more than $5 trillion—which is about half of the U.S. gross domestic product, and greater than the GDP of any other nation in the world.

View Commerce press release

Eleven American Companies Honored with Presidential Awards for Exporting Success

On May 24, Secretary of Commerce Carlos M. Gutierrez joined President Bush at the White House to present 11 American companies with “E” Awards for excellence in exporting. The Secretary commented that each of the “E” Award companies are helping to grow new markets around the world, and commended them “for contributing to last year’s record of $1.4 trillion in goods and services exports.” He added, “In order to remain competitive, American companies need to expand their access to foreign markets. Congressional passage of pending FTAs with Colombia, Panama, Peru, and South Korea, and renewal of the President’s Trade Promotion Authority is critical to keeping our export momentum going.” To view the list of “E” Award winners, view the Commerce press release.

U.S. and China Make Some Progress During Strategic Economic Dialogue

U.S. officials stated that further liberalization of aviation and financial services and greater collaboration on clean energy technologies are among “tangible results” of the May 22-23 Strategic Economic Dialogue (SED) with China. A new civil aviation agreement will more than double, to 23, the number of daily passenger flights between U.S and Chinese airports by 2012 and remove most restrictions on cargo flights by 2011.  The two countries also vowed to promote the full commercialization of advanced coal technologies, and agreed to cooperate on capturing and utilizing methane from coal mines. Treasury Secretary Henry Paulson highlighted new steps that further will open the Chinese financial sector and expand market access for foreign banks and financial firms, but suggested that the reform of the financial sector must be both broader and deeper, and bring in more innovative financial products to make a more significant impact on the entire Chinese economy. In his remarks to the media, Secretary of Commerce Carlos M. Gutierrez highlighted the need for tough enforcement of intellectual property rights and improved market access for U.S. companies as two key messages relayed to the Chinese during the dialogue.

View USIS Washington File report

View transcript of U.S. delegation press conference

View fact sheet on second meeting of Strategic Economic Dialogue

United States Seeks Specific Results from High-Level Talks with China

In his opening statement at the May 22-23 U.S.-China Strategic Economic Dialogue (SED), Treasury Secretary Henry Paulson said the ongoing high-level talks must create both actions and a “road map” for the future of the bilateral relationship. He stated that the United States and China must identify major future issues and simultaneously address immediate concerns such as growing protectionism, adding, “It is up to us … to show that words are precursors to action.” At the May 22-23 sessions in Washington, the two sides are expected to discuss financial services, sustainable energy, the protection of intellectual property and exchange rate policies. Paulson said near-term agreements on some of these issues are necessary to build confidence on both sides as China’s impact on the global economy rapidly grows and skeptics in both countries question the benefits of trade and globalization. China’s vice premier, Wu Yi, who leads the Chinese delegation, said the two countries should find their own ways of dealing with economic problems and help each other to address bilateral issues through cooperation.

View USIS Washington File report

Secretary Gutierrez Announces Competitiveness Report to be Released at Hemispheric Forum

On May 21, Commerce Secretary Carlos M. Gutierrez announced that he will release a report, “Competitiveness in the Americas,” at the Americas Competitiveness Forum, a gathering of top government officials, corporate leaders and academics, in Atlanta, Georgia, June 11-13, 2007. The Secretary stated the report “will help us examine what may be impeding or promoting competitiveness in the Western Hemisphere.” The Americas Competitiveness Forum will provide a venue for government ministers from the Western Hemisphere and leaders from the private sector, academia, and non-governmental organizations to explore cutting edge ideas and best practices in several key areas of competitiveness. Joining Secretary Gutierrez, the host of the Americas Competitiveness Forum, are Secretary of the Treasury Henry M. Paulson and Secretary of Education Margaret Spellings. The ACF agenda will include plenary addresses by Chief Executive Officers and senior executives of corporations. Representatives from numerous additional corporations, as well as leaders from private sector energy and transportation companies, will be in attendance.

View Commerce press release

Indonesia and United States Announce Steps to Deepen Trade and Investment Relations

On May 21, U.S. Trade Representative Susan C. Schwab and Indonesia’s Minister of Trade Mari Pangestu agreed to formally establish working groups intended to deepen U.S.-Indonesia economic relations in four key areas: intellectual property rights, agricultural and industrial goods, services and investment.  Meeting under the United States-Indonesia Trade and Investment Framework Agreement (TIFA) to discuss bilateral, regional and multilateral trade issues, USTR Schwab and Minister Pangestu directed the new working groups to develop specific initiatives in these four areas to further enhance trade and investment ties between the two countries. Schwab and Pangestu also exchanged views on Indonesia’s new Investment Law and the Indonesian government’s ongoing anti-corruption campaign, which the U.S. Government strongly supports. After the meeting, Schwab stated that the two sides discussed how they could work together to advance ASEAN (Association of Southeast Asian Nations) integration and to help achieve a successful outcome to the ongoing WTO Doha Round negotiations. The meeting between Schwab and Pangestu capped a full day of TIFA meetings on a wide range of bilateral issues, including investment, intellectual property, services, customs, transshipment of goods, and agriculture.  U.S. and Indonesian business and government representatives also met under the TIFA to exchange views on ways to further strengthen trade and investment links between the two countries.

View USTR press release

Notice Regarding Initiation of 2007 Annual GSP Product and Country Eligibility Practices Review

In a Federal Register notice, USTR announced that it will receive petitions in 2007 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 notice further determines that the deadline for submission of product petitions, other than those requesting competitive need limitation (CNL) waivers, and country practice petitions for the 2007 Annual GSP Product and Country Eligibility Practices Review is 5:00 p.m., June 22, 2007. The deadline for submission of product petitions requesting CNL waivers is 5:00 p.m., November 16, 2007. The list of product petitions and country practice petitions accepted for review will be announced in the Federal Register at later dates. For further information, please consult the Federal Register notice

U.S. and Foreign Commercial Service Director General Hernandez Marks Start of World Trade Week

To kick off World Trade Week, Assistant Secretary of Commerce for Trade Promotion/U.S. and Foreign Commercial Service Director General Israel Hernandez hosted the “Ask the White House” interactive forum to discuss helping U.S. companies compete and succeed in foreign markets. View the transcript of the May 21 “Ask the White House.”

2007 AGOA Report Shows Growth in U.S. – Africa Trade

On May 18, USTR submitted a comprehensive report to Congress on the results of U.S. trade and investment policy with respect to sub-Saharan Africa. The 2007 Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the African Growth and Opportunity Act (AGOA) notes that two-way trade between the United States and sub-Saharan African countries increased 17 percent in 2006 over 2005, reaching almost $71.3 billion, with both U.S. exports to and U.S. imports from the region growing.  The report also details the wide range of U.S. programs that are assisting African countries to strengthen economic growth and development through trade.  

At the Sixth AGOA Forum, which will take place in Accra, Ghana, July 18-19, trade facilitation will share the stage with finance, infrastructure development, product quality standards and a host of other economic issues. U.S. Trade Representative Susan Schwab and U.S. Secretary of Agriculture Mike Johanns will attend the Forum. At a May 18 briefing for the press, Principal Deputy Assistant Secretary of State for African Affairs Linda Thomas-Greenfield said that in addition to an expanded agenda, for the first time the forum will include private sector and civil society participants.

View USTR press release

View USIS Washington File report

U.S.-China Dialogue Opportunity To Address Global Issues

During an interview with USINFO on May 18, Alan Holmer, the Treasury Department’s special envoy for China, said that the United States and China are expected to make progress on a range of bilateral and global issues during their biannual high-level Strategic Economic Dialogue (SED). Holmer said that the recognition in both countries that open markets, innovation and effective social and energy policies are critical to sustainable economic growth is driving this movement. Providing advice and assistance to China on shifting from export-driven growth toward consumption-driven economic expansion will be one of the topics discussed at the May 22-23 meeting of the SED in Washington, Holmer said.  Other topics expected to be discussed include reforms of the Chinese financial sector, liberalization of services, an efficient and effective social safety net and protection of intellectual property rights. Treasury Secretary Paulson will host the meeting, and will be joined by Secretary Gutierrez, U.S. Trade Representative Schwab, Secretary of Agriculture Johanns and Deputy Secretary of State Negroponte, along with the secretaries of labor, health and human services, transportation and energy, the EPA administrator and Federal Reserve chairman.

View USIS Washington File report

Deputy Secretary of Commerce Sampson Addresses Trade Winds Forum

View the text of Deputy Secretary of Commerce David Sampson’s opening remarks at the Trade Winds Forum on May 15. In his remarks, the Deputy Secretary provided an update on the state of U.S. trade policy, in which he underscored the United States’ commitment to improving market access, encouraging innovation and helping exporters succeed in the global marketplace. Mr. Sampson noted that the three markets discussed at the Forum—Africa, Europe and India—are very different but “all hold tremendous opportunity.” He reminded the attendees that the Commerce Department, through the Commercial Service, has a variety of trade promotion services that can help them become better exporters.

U.S. Draft Law Would Toughen Penalties Against Counterfeit Goods

In response to intellectual property rights violations which deprive legitimate businesses of profits and often seriously threaten human safety and health, on May 14 the U.S. Justice Department sent to Congress the Intellectual Property Protection Act of 2007. The draft legislation calls for stronger penalties for repeat offenders and would increase the maximum penalty for counterfeiting offenses if the defendant “knowingly and recklessly causes serious bodily injury or death,” Attorney General Gonzales said. The administration also announced plans to expand its efforts to improve intellectual property enforcement in key countries. This summer, the Justice Department will establish a second intellectual property law enforcement coordinator in Sofia, Bulgaria, to improve the department’s international cooperation and outreach. Gonzales said he recently traveled to Brazil to discuss joint operations to combat intellectual property crime. The issue of intellectual property violations also will be a subject of his discussions at the G8 justice and interior ministers meeting in Munich, Germany, May 23-25.

View USIS Washington File report

U.S. Free Trade Pact Spurring Foreign Investment in Caribbean Basin

According to the Overseas Private Investment Corporation (OPIC), foreign direct investment in the Caribbean Basin is rising, with some of the increase attributed to a U.S. free trade agreement with the region. OPIC, in announcing its sponsorship of a May 15-17 international conference on foreign investment to be held in El Salvador, said the Central America Free Trade Agreement-Dominican Republic (CAFTA-DR) laid the foundation for significant economic growth in 2006 in such nations as Guatemala and Honduras. OPIC said the trade pact also spurred strong foreign investment in the tourism and mining industries in several Caribbean countries. The United States also is sponsoring another event on attracting foreign investment in the Caribbean Basin, the May 24-25 “Central American Energy and Competitiveness Conference” in Tegucigalpa, Honduras. The conference will focus on national and regional regulations that could be enacted to bring more investment to the Caribbean Basin’s energy sector.

View USIS Washington File report

President Bush Pleased by Bipartisan Free Trade Agreement

In a statement released by the White House on May 10, President Bush expressed his pleasure that the Administration and Congressional leaders reached a bipartisan agreement that provides a clear path for advancing the proposed free trade agreements with Peru, Colombia, Panama, and South Korea. The President stated, “While these agreements will move forward independently, my Administration is committed to working with Members of Congress and with the governments of our free trade agreement partners to secure the approval of each agreement.” Mr. Bush added, “I also look forward to working with the Congress to extend Trade Promotion Authority to negotiate agreements that open markets and generate new economic opportunities.”

View USTR fact sheets relating to bipartisan free trade agreement

Final Bipartisan Trade Deal on Environment

Final Bipartisan Trade Deal on Government Procurement

Final Bipartisan Trade Deal on Investment

Final Bipartisan Agreement on Trade Policy: Intellectual Property Provisions

Final Bipartisan Trade Deal on Labor

Final Bipartisan Trade Deal on Port Security

United States and Singapore Welcome Increased Trade and Investment from Free Trade Agreement

View the USTR press release regarding the May 11 meeting between U.S. and Singaporean officials to review progress made under the U.S.-Singapore Free Trade Agreement (FTA), which entered into force on January 1, 2004. In the press release, USTR noted that two-way trade has surged 34 percent since the FTA came into force and Singapore is now the United States’ ninth largest export market, moving up from eleventh place in 2003. The parties, who were meeting for their third annual review of the FTA, also noted the continued strong growth in investment flows since the agreement entered into force. 

President Bush's Statement on Open Economies

View the text of President Bush’s statement on open economies, in which he reiterated the Administration’s policy of promoting “open investment policies and free trade on a level playing field.” Citing the United States’ position as the world’s largest investor and largest recipient of investment, the President stated that it has “a key stake in promoting an open investment regime.” Mr. Bush also underscored the Administration’s commitment “to advancing free and fair trade in multilateral, regional, and bilateral negotiations. We will work aggressively to conclude the World Trade Organization's Doha Development Agenda negotiations and to secure congressional approval of the free trade agreements with Colombia, Panama, Peru, and South Korea.”

View text of Open Economies Policy Statement

View White House fact sheet on jobs and economic growth

Commerce Under Secretary Lavin Discusses U.S.-Mexican Competitiveness

View the text of Under Secretary of Commerce for International Trade Franklin Lavin’s remarks to the American Chamber of Commerce in Mexico on May 8, in which he discussed how the United States and Mexico can work together to further economic growth and improve their competitive position in the global economy.

Secretary Rice Says Free-Trade Deals Help Latin American Nations Boost Democracy

In her remarks to the Business Council in Washington on May 9, Secretary of State Condoleezza Rice said that failing to extend free-trade agreements (FTAs) to Colombia, Panama and Peru would be a “huge” mistake at the time when Latin America faces real challenges to democracy and peace. The Secretary stated that trade helps new democracies “build the effective institutions of a free society” and “give citizens a greater stake in the long-term stability and success of their democracy.” The Bush administration has signed FTAs with Colombia and Peru and negotiated another one with Panama, but the agreements require congressional approval to come into force. In addition, Rice said, the recently negotiated FTA with South Korea creates an opportunity to help a key democratic ally in Asia “lock in” economic reform and the rule of law. Senate Finance Committee Chairman Max Baucus, which has jurisdiction over trade issues, said May 7 that Congress might let Trade Promotion Authority expire as scheduled June 30 if the Doha round of WTO trade talks fails to make significant progress.

View USIS Washington File report

USTR Schwab Addresses Business Council

View the text of U.S. Trade Representative Susan Schwab’s remarks to the Business Council on May 9. In her speech, Ambassador Schwab stated that, despite the Administration’s accomplishments in trade, “demagogues and protectionists” are exploiting “isolated points of data and selected anecdotes about job losses to stoke fear and anxiety.” Schwab noted that there has been some economic displacement, and that “we need to help people and communities that are negatively impacted.” She added, however, that “Globalization is here to stay. Globalization presents us with new challenges along with the new opportunities.”

Schwab Announces U.S. Contribution to WTO Technical Assistance Efforts

On May 8, U.S. Trade Representative Susan C. Schwab announced that the United States intends to contribute $940,000 for trade-related technical assistance (TRTA) to the WTO.  This latest contribution would bring total U.S. contributions to WTO TRTA for the Doha Development Agenda to almost $7 million since the launch of negotiations in November 2001 and is part of the U.S. commitment to the Aid for Trade initiative. The WTO’s technical assistance program provides training to help developing countries by enhancing their ability to analyze issues, assess their interests, and participate effectively in the negotiations.  It also assists developing countries in meeting their WTO obligations and benefiting from the results of WTO negotiations. Commenting on the U.S. contribution, Schwab stated, “At this crucial phase of the Doha negotiations, this contribution reflects our strong commitment to provide assistance to developing countries to help them participate in the negotiations and benefit from the results.” The United States is the largest single country donor of trade capacity building assistance.  Total U.S. funding for trade capacity building activities in FY2006 was approximately $1.4 billion, up from almost $640 million in FY2002.

View USTR press release

U.S., Mexican Officials Discuss Trade Issues In Consultative Committee On Agriculture

On May 8, the United States and Mexico held the inaugural meeting of the U.S.-Mexico Consultative Committee on Agriculture (CCA), following renewal of the bilateral forum by the two governments in March 2007.  Among other outcomes, the parties agreed to conduct several technical assistance projects in Mexico in the corn and dry bean areas to help prepare Mexican producers for NAFTA implementation. Officials also discussed pending U.S. and Mexican farm legislation, biotechnology, and a number of sanitary and phytosanitary issues. The U.S.-Mexico CCA discussions followed a meeting of the U.S.-Mexico Sweeteners Task Force on May 7, which allowed private-sector members of the sweeteners industry to provide advice to government officials about the operation of the July Agreement and the transition to full duty-free trade in sweeteners on January 1, 2008.  The relationship between the United States and Mexico in agriculture is increasingly vital for both countries, with two-way trade in agricultural goods topping $20 billion in 2006.

View USTR press release

African Partners Helping Plan Upcoming Trade Forum in Ghana

According to a USIS Washington File report, planning for the upcoming African Growth and Opportunity Forum in Ghana includes input from African partners who believe the U.S.-originated trade program has the best chance to bring the continent into the world's economic mainstream. Deputy Assistant Secretary of State for African Affairs Linda Thomas-Greenfield chaired a planning session April 30 at which more than a dozen African ambassadors contributed ideas on how the July 18-19 forum in Accra can be most effective in bringing together business and trade officials from the United States and Africa. The United States is working out how best to contribute to the 2007 forum theme:  "As Trade Grows, Africa Prospers -- Optimizing the Benefits Under AGOA." Representatives from the U.S. departments of Agriculture, Treasury and Commerce and the U.S. Agency for International Development (USAID) also attended the planning session.  The agencies will host and co-host panels on topics such as:  strategies for diversifying the manufacturing sector; health challenges to African productivity under AGOA; and U.S. and African government technical assistance programs.

View USIS Washington File report

William G. Sutton Nominated as Assistant Secretary of Commerce for Manufacturing and Services

In a May 4 statement, Secretary of Commerce Carlos M. Gutierrez applauded President Bush’s nomination of William G. "Woody" Sutton for the position of Assistant Secretary of Commerce for Manufacturing and Services.  Sutton, a former U.S. Navy Rear Admiral, most recently served as President of the Air Conditioning and Refrigeration Institute (ARI)--an association that represents manufacturers of more than 90 percent of North American-produced central air conditioning and commercial refrigeration equipment.  Once confirmed, Sutton would serve as the Bush Administration’s point person for the manufacturing and services sectors, helping them grow, create jobs and compete in the global economy.   The Secretary noted that some top issues on the agenda for the manufacturing sector include: strong economic environment, competitiveness, open markets, enforcements of trade laws and education. 

View Commerce press release

Trade Pacts with Colombia, Peru, Panama Vital to U.S. Interests

On May 2, Secretary of Commerce Carlos M. Gutierrez and Assistant Secretary of State for Western Hemisphere Affairs Thomas Shannon discussed the pending trade agreements with Colombia, Peru and Panama in remarks to the Council of the Americas. The Secretary told the conference that the pending trade pacts with Latin America make economic and political sense for the United States. He noted that the United States is a close political ally of Colombia, Peru and Panama, and rejecting any one of the three agreements would carry economic and foreign policy consequences which “could create opportunity for those in the hemisphere” who do not “share our democratic values and commitment to economic opportunity.” Shannon said that approving the agreements would “send a clear message of U.S. engagement in the region, and not just to countries that are friendly to us but to people who are on the cusp of significant political economic and social accomplishments.”

View USIS Washington File report

View text of Secretary Gutierrez’s remarks

View text of Assistant Secretary Shannon’s remarks

Participants for Americas Competitiveness Forum

On May 1, Secretary of Commerce Carlos Gutierrez announced that three United States Cabinet Secretaries, three Latin American Vice-Presidents and senior officials from twenty Western Hemisphere nations have confirmed their participation in the inaugural Americas Competitiveness Forum to be held June 11–12, 2007, in Atlanta, Georgia. The Secretary called the Forum “… an excellent opportunity for government and private sector leaders to discuss policies and strategies that attract investment and promote economic prosperity throughout the Western Hemisphere.” Joining Gutierrez, the host of the Americas Competitiveness Forum, are Secretary of the Treasury Henry M. Paulson and Secretary of Education Margaret Spellings. In addition to dozens of Minister-level government officials from throughout the region, the 33 democratically-elected countries of the Western Hemisphere will be represented by three Vice Presidents: Ana Vilma de Escobar of El Salvador, Jaime Morales Carazo of Nicaragua, and Kevin Casas Zamora of Costa Rica.

View Commerce press release

View Forum agenda

Statement by Commerce Secretary Gutierrez Following Meeting with Singapore Prime Minister Lee Hsien Loong

After his May 3 meeting with Singapore Prime Minister Lee Hsien Loong, Commerce Secretary Carlos M. Gutierrez issued a statement noting that their meeting “…was a good opportunity to discuss both the U.S. - Singapore bilateral relationship and our economic engagement in the region…” The Secretary stated that "The strength of our relationship is reflected by [the] groundbreaking U.S.-Singapore Free Trade Agreement, our first FTA in Asia and the first FTA signed by President Bush. “ Since the entry into force of the agreement in 2004, trade has increased 34 percent, with exports totaling $24.7 billion in 2006. Citing Singapore’s importance as a partner, especially as the United States enhances its trade and commercial ties with the Association of Southeast Asian Nations (ASEAN), Mr. Gutierrez stated, “ We strongly support ASEAN progress towards economic integration under the ASEAN-U.S. Enhanced Partnership.” 

View Fact Sheet on U.S.-Singapore FTA

Strong Support for the U.S.-Korea Free Trade Agreement

View an updated USTR fact sheet which lists statements of support for the U.S.-Korea Free Trade Agreement from U.S. firms and industry associations.

USITC Begins Assessment of U.S.-Korea FTA

The U.S. International Trade Commission (USITC) has instituted an investigation at USTR’s request to assess the likely impact of a comprehensive bilateral free trade agreement (FTA) that the President has proposed to establish with Korea. The Trade Act of 2002 requires the USITC to prepare a report that assesses the likely impact of proposed free trade agreements 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 June 7, 2007. For information on the hearing and filing written submissions for the record, please consult the USITC press release.

U.S., EU Agree To Reduce Regulatory and Trade Barriers

According to a USIS Washington File report, the United States and the EU agreed at their April 30 summit meeting to expand economic ties by cutting barriers to trade and investment and liberalizing restrictions on air travel. President Bush, German Chancellor Angela Merkel and European Commission President Jose Manuel Barroso signed the trans-Atlantic economic partnership plan under which the two trading partners will establish a framework for business integration by streamlining regulatory standards that are often different between the trans-Atlantic partners. As part of the framework, the United States and EU will set up the "Trans-Atlantic Economic Council" to push regulatory convergence in nearly 40 areas, including intellectual property, financial services and the automotive industry. In addition, all three leaders stressed their commitment to bringing the long-stalled Doha Round of WTO negotiations to a successful outcome.