October 2007 News

Commerce Secretary Gutierrez Cites Need to Pass FTAs for Maintaining Momentum in Global Economy

At a luncheon address to the World Affairs Council of Philadelphia on October 29, Secretary of Commerce Carlos M. Gutierrez highlighted the strength of the U.S. economy, focusing on export growth as a key factor. He noted that the passage of pending free trade agreements would further grow U.S. exports and create a stronger global economy. He said, “Our leadership is a driver of the global economy, not just our own. We must keep this momentum going.”

Commerce Secretary Gutierrez Emphasizes Need to Maintain U.S. Competitiveness

View the text of Commerce Secretary Carlos M. Gutierrez’s October 26 remarks to the Council on Competitiveness, in which he underscored the need for the U.S. to maintain its open markets and to open “global markets for American products and services.” At the same time, Mr. Gutierrez urged the U.S. to take the steps necessary to ensure “we have the workforce our economy will need, ” including adopting comprehensive immigration reform, in order to maintain “our continued economic growth.” He said that the United States’ experience with immigration could be “a competitive advantage for the next century.”

USTR Schwab Announces U.S. Will Seek New Trade Agreement to Fight Fakes

In a major step in the fight against intellectual property rights (IPR) counterfeiting and piracy, U.S. Trade Representative Susan C. Schwab announced on October 23 that the United States and some of its key trading partners will seek to negotiate an Anti-Counterfeiting Trade Agreement (ACTA). In a press conference on Capitol Hill with Members of Congress and Ambassadors from countries who will be part of the new initiative, Schwab explained that ACTA is a bold leadership effort among countries that support high standards of enforcement against piracy and counterfeiting.  The participants in this effort will elaborate on a vision, developed over the past year, for a new agreement addressing three main areas: cooperation, best practices, and a strong legal framework for IPR enforcement.  Trading partners engaged in discussions so far include Canada, the European Union (with its 27 Member States), Japan, Korea, Mexico, New Zealand, and Switzerland. The ACTA would complement the Administration’s work to encourage other countries to meet the enforcement standards of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and to comply with other international IPR agreements.  It will not involve any changes to the TRIPS Agreement.  Rather, the goal is to set a new, higher benchmark for enforcement that countries can join on a voluntary basis. 

View USTR press release

Secretary Gutierrez Calls for Economic Openness in Remarks to U.S-China Relations Conference

During his October 23 remarks at the 2007 U.S.-China Relations Conference, Commerce Secretary Carlos M. Gutierrez reiterated the United States’ commitment to open markets, which has paid off in a record level of U.S. exports and an increase in real disposable income of 12.5 percent since 2001. The Secretary stated that “Openness is essential for China’s global leadership and is a requirement of WTO membership.” He noted that China is “…stepping away from openness” by “the direct and indirect subsidization of Chinese companies… (which) reduces market access and stifles competition in China and creates market distortions everywhere.” Another concern is China’s foreign investment policies, which are restricting U.S. firms “from investing, doing business or offering services,” such as the U.S. telecom companies which cannot sell basic services, and the U.S. insurance and direct-selling companies which face obstacles to registering locally. While he noted that China has made some progress recently to protect intellectual property, Secretary Gutierrez emphasized that “IPR in China remains a critical concern for the U.S.,” and called on China to take steps to enhance its “Made in China” brand. Regarding product safety, the Secretary stated, “China—and all of our trading partners—must do their part to ensure their products are safe.”

Commerce Secretary Gutierrez Announces Vietnam Business Development Mission Participants

On October 22, Commerce Secretary Carlos M. Gutierrez announced that 23 companies will join him on the first-ever Cabinet Business Development Mission to Hanoi and Ho Chi Minh City, Vietnam, November 4-8, 2007, designed to expand bilateral trade ties and boost U.S. export opportunities. “Vietnam is a growing economy with excellent opportunities for our American manufacturers, businesses and workers,” said Gutierrez. “These companies make vital contacts and acquire information to allow them to prosper in the Vietnamese market, increasing exports and creating higher paying jobs for our workers at home.” Mission participants represent a diverse cross-section of U.S. industries with a strong interest in doing business in Vietnam. Vietnam is one of the world's fastest growing economies, and the business development mission will seek to expand the market share of U.S. companies doing business there. The mission will also strengthen economic relations between Vietnam and the United States following Vietnam’s accession to the WTO earlier this year. To view the list of companies participating in the mission, please refer to the Commerce press release.

United States and Rwanda Deepen Trade and Investment Partnership

During their October 17 meeting in Washington, U.S. and Rwandan trade and development officials discussed ways to increase trade and investment flows between the two countries.  The discussions took place as part of the second high-level meeting under the U.S.-Rwanda Trade and Investment Framework Agreement (TIFA), signed in 2006.  The parties discussed recent trends in two-way trade, negotiations toward a U.S.-Rwanda Bilateral Investment Treaty (BIT), implementation of the African Growth and Opportunity Act (AGOA), the WTO Doha negotiations, trade capacity building activities, and infrastructure issues.  The meeting also included a roundtable discussion with representatives of the Rwandan and U.S. private sectors on means to improve the environment for bilateral trade and investment. Regarding the BIT, U.S. delegation chair DUSTR Karan Bhatia stated that the treaty

“… would complement Rwanda’s economic reform efforts and further enhance investor confidence.” The BIT negotiations began in June 2007 and, since then, have made significant progress toward an agreement.  The negotiations are the first U.S. bilateral investment treaty talks with a sub-Saharan African country in nearly a decade.

View USTR press release

Annual U.S. Reform Recommendations Presented to Japan

During an October 18 meeting of the U.S.-Japan Trade Forum in Tokyo, Assistant U.S. Trade Representative for Japan, Korea, and APEC Affairs Wendy Cutler submitted to Japan a broad and detailed list of reform recommendations aimed at improving the overall business climate and competitive position for innovators in Japan’s market while expanding opportunities for U.S. exporters. The U.S. submission placed particular emphasis on urging Japan to enact a range of pro-innovation policies in the medical devices and pharmaceuticals sectors, as well as take steps that help ensure equal treatment and efficient competition in all markets where the new Japan Post companies compete with private companies.  The requests also urge Japan to improve customer convenience by carrying through with its planned full liberalization of the bank sales channel of insurance products. The U.S. recommendations were submitted under the U.S.-Japan Regulatory Reform and Competition Policy Initiative, which provides a forum for engagement with Japan over a wide range of issue areas, such as competition policy and intellectual property rights, as well as specific issues in particular industries, such as in the communications and healthcare-related sectors.

View USTR press release

Congressional Delegation Led By Secretary Gutierrez Sees Real Economic Progress and Change in Colombia

At the conclusion of his second bipartisan U.S. Congressional delegation visit to Colombia in recent weeks, Commerce Secretary Carlos M. Gutierrez noted the very significant progress the country has made toward increased economic prosperity, strong democratic governance, and the protection of human rights. Gutierrez led the delegation to Colombia to show the positive economic and social changes being driven by President Alvaro Uribe, a key U.S. ally. Regarding the U.S.-Colombia Free Trade Agreement, the Secretary stated, “Colombians already have free access to the U.S. market - this free trade agreement would give our U.S. businesses, farmers and ranchers the same access to the Colombian market and help create higher paying jobs here at home.” Gutierrez and the delegation met with President Uribe, government officials and members of the business community and civil society, including union leaders. While in Bogotá Gutierrez addressed the Bogotá Chamber of Commerce to highlight the economic opportunities of increased trade with the United States.

View Commerce press release

President Bush Advocates Free Trade Agreements in Miami Speech

View the text of President Bush’s October 12 remarks to the Center for Hemispheric Policy and Miami Chamber of Commerce regarding free trade agreements (FTAs). The President urged approval of pending FTAs with Colombia, Panama and Peru, noting the benefits to the U.S. economy of the recent FTAs with Central America/Dominican Republic, Chile and Singapore. Mr. Bush stated that, if enacted, the pending FTAs would knock down many of the significant barriers U.S. exporters are currently facing in those countries and expand access to 75 million new customers with a combined GDP of $245 billion. The President added that his Administration will work closely with Congress to pass the FTA with South Korea, continue to seek broad regional trade agreements in the Americas and the Asia-Pacific region, and continue pushing for a successful conclusion to the Doha Round of WTO trade talks, “which has the potential to lower trade barriers across the world.”

U.S. Officials Discuss Preparations for U.S.-China Joint Commission on Commerce and Trade

View the transcript of the October 10 press roundtable by Deputy U.S. Trade Representative Karan Bhatia and Acting Under Secretary of Commerce for International Trade Christopher Padilla after they held talks with Chinese officials in Beijing to continue preparations for the December 11 U.S.-China Joint Commission on Commerce and Trade (JCCT). While he acknowledged the progress China has made over the past six years in addressing bilateral trade and economic issues, DUSTR Bhatia stated that a number of “significant challenges” remain. Acting Under Secretary Padilla stated that the talks focused on three areas: industrial policy, product safety, and specific identifiable market access issues. Regarding industrial policy, Padilla said that he and Bhatia were struck by the growing trend of how China is “…using a variety of different policy tools and regulations in a way that appear to be intended to benefit Chinese national champion companies to the detriment of foreign competitors including American competitors.” Padilla told the Chinese that U.S. consumers are closely watching product safety issues, adding that the ‘made in China’ brand is at risk now in the minds of some of those consumers. In response to a question regarding increased Chinese inspections of imported goods in reaction to U.S. recalls of Chinese-made products, DUSTR Bhatia said that he and Padilla “stressed the importance of ensuring that goods are able to flow into China without undue governmental interference.” Bhatia stated that ”risk-based, science-based steps taken to protect consumers are completely defensible… That is what we do to protect our consumers. I would expect the Chinese government to do that with respect to their consumers.”

U.S Requests WTO Panel in Challenge of Chinese Barriers to Market Access for Products of Copyright-Intensive Industries

On October 11, USTR announced that the United States has asked the WTO to establish a dispute settlement panel, the next procedural step in its WTO case challenging China’s restrictions on the importation and distribution of products of copyright-intensive industries such as theatrical films, DVDs, music, books and journals. The United States is seeking to eliminate Chinese import and internal distribution barriers that significantly hamper the ability of U.S. publishers and producers of audio-visual products to get their legitimate products into the Chinese marketplace under normal market conditions, thereby enhancing the market for pirated products.  The United States requested WTO dispute settlement consultations with China over these issues in April of this year, and filed a supplemental consultation request in July.  Although the United States and China held consultations in early June and again in late July, China has not, however, taken steps to address U.S. concerns.  The U.S. panel request will be considered by the WTO Dispute Settlement Body (DSB) at its next meeting, which is scheduled for October 22. This is the fourth WTO case against China where the United States has requested a WTO dispute settlement panel. 

Commerce Secretary Gutierrez Urges Movement in Doha Round to Spur New Trade Flows, Launches U.S.-Brazil CEO Forum

During his speech to the American Chamber of Commerce in Sao Paulo, Brazil, on October 10, Secretary of Commerce Carlos M. Gutierrez discussed the strong economic and social ties between the United States and Brazil, and the need for further cooperation, particularly in the Doha Round of WTO trade talks, to further glow global trade and commerce. The Secretary noted some problems which U.S. companies are experiencing in Brazil, including the complexities of Brazil’s business environment which create “substantial obstacles” for U.S. investors and U.S. exporters, as well as high tariffs, a difficult customs system, a heavy and unpredictable tax burden, and an overloaded legal system which is slow to enforce business law.

Mr. Gutierrez was in Brazil to launch the inaugural meetings of the U.S.-Brazil CEO Forum, which is made up of business leaders from both countries. In a statement released after the Forum, the Secretary and National Economic Council Director Allan Hubbard welcomed the Forum’s report, agreeing to consider its recommendations aimed at strengthening U.S.-Brazil economic and commercial ties. Hubbard noted that the report provided specific recommendations for the U.S. and Brazil to take, such as a bilateral tax treaty, and made recommendations on other areas for focus, including investment protection, infrastructure, biofuels, customs modernization and support of innovation through intellectual property protection. The U.S. and Brazil intend to reconvene the CEO Forum in the United States in mid-2008.

View U.S.-Brazil Commercial Dialogue Joint Statement

Commerce Secretary Gutierrez’s Remarks at Uruguyan-American Chamber of Commerce

View the text of Secretary of Commerce Carlos M. Gutierrez’s remarks at the Uruguayan-American Chamber of Commerce in Montevideo, Uruguay. The Secretary stated that he visited Uruguay to “emphasize the commitment the United States has to President Vazquez’s administration and to explore ways we can increase U.S.-Uruguay economic cooperation.” He noted important milestones for strengthening bilateral economic relations, including the 2006 Bilateral Investment Treaty and 2007 Trade and Investment Framework Agreement. While in Uruguay, the Secretary and Minister of Industry, Energy, and Mines Lepra signed a letter of intent to continue the work begun at the Americas Competitiveness Forum to foster joint efforts to spur innovation and increase competitiveness. Noting Uruguay’s vision to be an “innovation hub” in the Western Hemisphere, as well as its efforts to attract additional investment, Secretary Gutierrez urged Uruguay to join the WTO Information Technology Agreement, whose 70 members represent 97 percent of world trade in information technology products.

Georgians, Americans Plan Steps To Protect Intellectual Property

Representatives from Georgia and the United States agreed to work toward establishing a Georgian government point-person to enforce intellectual property protection laws in Georgia and to publicize clear steps for complainants.  In their October 5 videoconference, U.S. and Georgian government officials and business people agreed to develop a simple “road map” -- either a brochure or Web site with clear steps laid out -- that tells intellectual property holders how to proceed if their rights have been violated in Georgia.  Eric Schwartz of the International Intellectual Property Alliance said that enforcement is the most difficult task.  He called Russia the “largest pirate in the world” and said that customs officials in Georgia need to stop illegal goods coming in from Russia.  Schwartz said the U.S. government is trying to stop production of illegal goods at Russian factories.

View USIS Washington File report

Commerce Secretary Gutierrez Applauds Costa Rican Vote to Approve U.S. Trade Deal

In an October 8 statement, Commerce Secretary Carlos M. Gutierrez applauded Costa Rica’s positive referendum on their trade agreement with the United States. The Secretary stated, “With this historic endorsement of the U.S.-Costa Rican trade agreement, the people of Costa Rica have said “si” to opportunity, “si” to investment, and “si” to a prosperous future. CAFTA-DR is a key part of Costa Rica’s economic growth strategy with its neighbors and the United States.”

View Commerce press release

Afghanistan Carpet Industry Prepares for Global Market

Afghanistan’s drive to rebuild its carpet industry with U.S. assistance is a key element in its economic reconstruction, according to U.S. officials. While Afghanistan exported $140 million worth of carpets, its largest official export, in 2005, U.S. officials said that if it could repatriate the portion of its carpet industry that has migrated to Pakistan, the size of the industry would double. Only a small fraction of Afghanistan's rugs are sold abroad as Afghani products, because more than 90 percent are sent to Pakistan for cutting, washing and finishing, and ultimately exported as products made in Pakistan. The Commerce Department's director of the Iraq and Afghanistan Investment and Reconstruction Task Force, Susan Hamrock Mann, says, "We're helping Afghanistan get its identity back and return the entire production to Afghanistan so that they can start stamping the carpets made in Afghanistan." In January, the Commerce Department orchestrated the first Afghan carpet exhibition in the United States in Atlanta. In August, Commerce Secretary Carlos M. Gutierrez led a U.S. delegation to the International Carpet Fair in Kabul. The next major event in the Commerce Department's efforts to integrate the Afghan carpet industry into the global market is an international rug show in Las Vegas January 28-February 1, 2008.

View USIS Washington File report

Gutierrez Addresses U.S. Competitiveness in Address to AdvaMed

View the text of Secretary of Commerce Carlos M. Gutierrez’s remarks at Advamed’s Annual Conference in Washington on October 2. The Secretary stated that the best way to maintain the momentum of U.S. exporting success (exports were up 12.7 percent in 2006 to a record $1.4 trillion) “is to continue opening global markets for U.S. goods and services.” He advocated passage of pending free trade agreements with Colombia, Korea, Panama and Peru, which would open markets with a combined $1.1 trillion of GDP. Mr. Gutierrez noted the important contributions of medical technology to U.S. economic growth. He also underscored the importance of protecting intellectual property, stating, “This Administration is very aware that IP-based companies, like those in the medical technology industry, must be able to export their products and services, while ensuring that their innovations are protected.”

Statement by USTR Schwab on Costa Rican Vote on CAFTA/DR

In remarks on October 4, U.S. Trade Representative Susan C. Schwab commented on the upcoming Costa Rican referendum on the Central American/Dominican Republic Free Trade Agreement (CAFTA/DR). While noting that the United States “respects the sovereign right of the citizens of Costa Rica to choose whether to approve the (CAFTA/DR),” she hoped that “whatever decision is made is based on the facts.” She quashed speculation that the United States would negotiate another agreement with Costa Rica if the current agreement is rejected, stating “The agreement we reached with Costa Rica is a balanced agreement that is strongly in the national interests of both of our countries.”

View text of USTR Schwab’s remarks

Gutierrez Travels to Uruguay and Brazil for Trade Discussions

In an October 3 statement, Commerce Secretary Carlos M. Gutierrez announced that he would travel to Uruguay (October 8-9) and Brazil (October 9-11) to discuss with senior government officials and the business communities ways to promote greater bilateral trade, economic growth and opportunity and to foster greater commercial cooperation between the United States and both Uruguay and Brazil. In Uruguay, Secretary Gutierrez will follow up on President Bush’s March 2007 visit to emphasize the United States’ commitment to President Vazquez’s administration and to expanding the partnership with Uruguay. In Brazil, the Secretary will co-chair the U.S.-Brazil CEO Forum with National Economic Council Director Allan Hubbard, participate in the U.S.-Brazil Commercial Dialogue, and discuss how trade, innovation and open markets foster positive social change, economic growth and opportunity.

View Commerce press release