December 2008 News

USTR Schwab’s Statement Regarding Entry into Force of U.S.-Oman FTA

On December 29, U.S. Trade Representative Susan C. Schwab issued a statement regarding the entry into force of the Oman Free Trade Agreement (FTA). Schwab noted the President’s proclamation to implement the U.S.-Oman FTA as of January 1, 2009. She stated that the FTA “… advances the President’s vision for economic integration and development in the Middle East and holds important promise for the people of both Oman and the United States,” and that it “ builds on (FTAs) concluded with Israel, Jordan, Morocco and Bahrain, Trade and Investment Framework Agreements with 10 countries in the region and the 2005 World Trade Organization accessions of Saudi Arabia. Implementing legislation for the U.S.-Oman FTA passed the U.S. Senate in June 2006 and the House of Representatives in July 2006. It was signed by the President in September 2006.

View USTR press release

USTR Releases 2008 Report to Congress on China’s WTO Compliance

On December 23, USTR presented to Congress the statutorily-mandated annual report on China’s compliance with its WTO obligations. According to the Executive Summary of the report, “many developments in the U.S.‐China trade relationship demonstrated that the Administration’s policy of serious dialogue and resolute enforcement is delivering real results.” China’s implementation of its WTO commitments has led to increases in U.S. exports to China, while deepening China’s integration into the international trading system and facilitating and strengthening the rule of law and the economic reforms that China began thirty years ago. At the same time, the Executive Summary noted that “despite the progress achieved in 2008, several specific issues continued to cause particular concern for the United States and U.S. industry, given China’s WTO obligations. These outstanding issues arose in a range of areas, including principally intellectual property rights, industrial policies, trading rights and distribution services, agriculture and services,” as noted in the report.

View USTR press release

Schwab Statement Regarding Entry into Force of CAFTA-DR for Costa Rica

View the text of the December 23 statement by U.S. Trade Representative Susan C. Schwab regarding the entry into force of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) for Costa Rica. Noting President Bush’s issuance of a proclamation to implement the CAFTA-DR for Costa Rica as of January 1, 2009, Schwab stated, “I am very pleased to be able to celebrate the entry into force of this important multi-country agreement.” She called Costa Rica’s efforts to adopt legislation and regulations to implement its commitments under the CAFTA-DR “…an important milestone in our relationship with Costa Rica, building on our strong economic and political partnership. With the addition of Costa Rica, this important regional free trade agreement will be in effect – as of January 1, 2009 – for all of the countries that signed the agreement.”

USTR Statement on Anti-Counterfeiting Trade Agreement Discussions

View the text of a statement by USTR spokesperson Scott Elmore regarding the December 15-18 discussions on the proposed Anti-Counterfeiting Trade Agreement (ACTA). The participants “reaffirmed their commitments to negotiate an agreement to combat global infringements of IPR, particularly in the context of counterfeiting and piracy, by increasing international cooperation, strengthening the framework of practices that contribute to effective enforcement, and strengthening relevant IPR enforcement measures themselves.” This meeting was the fourth in a series of negotiations to discuss proposals concerning different aspects of the proposed agreement. The participants discussed the schedule of future negotiations and meeting again in Morocco in March 2009, and “confirmed their intention to conclude the agreement as soon as possible.”

United States Promotes Development Through Aid for Trade

On December 16, U.S. Trade Representative Susan C. Schwab announced that the United States increased its annual spending on Aid for Trade programs, also known as trade capacity building, to $2.3 billion in the 2008 fiscal year, an increase of 60 percent from the 2007 fiscal year. Since 2000, the United States has provided more than $9.7 billion in total trade-related assistance to our less developed trading partners. The United States is the largest single-country provider of trade-related assistance, including development of trade-related physical infrastructure. This assistance is aimed at helping developing countries take advantage of the opportunities of the global trading system, and more broadly, harness trade as an engine of growth and development. Commenting on the U.S. contribution to trade capacity building, Schwab characterized it as “… another example of the ongoing U.S. commitment to promoting development and achieving a successful conclusion to the Doha Round negotiations.”

View USTR press release

WTO Appellate Body Confirms Finding Against China’s Taxation of U.S. Auto Parts

On December 15, U.S. Trade Representative Susan C. Schwab announced that, in the first WTO dispute to be litigated against China, the WTO Appellate Body confirmed that China’s treatment of U.S. and other imported auto parts is inconsistent with China’s WTO obligations. Schwab commented that the decision “…confirmed that China’s discriminatory taxation of U.S. auto parts is fundamentally at odds with core WTO principles,” and that she “expect(s) China to comply promptly with its WTO obligations by removing an unlawful and unfair trade barrier that is harming U.S. workers and manufacturers.” She added, “Formal dispute resolution ultimately proved necessary in this case because of China’s failure to respond to earlier efforts to resolve this problem through dialogue.” The Appellate Body also confirmed similar findings in favor of Canada and the European Union, which had brought companion disputes against the Chinese measures.

View WTO Appellate Body report on auto parts dispute

Statement from Ambassador Susan C. Schwab on WTO Ministerial

View the text of U.S. Trade Representative Susan C. Schwab’s December 12 statement regarding a decision by WTO Director General Lamy not to call a ministerial at this time. She noted, “There were several significant unresolved issues on the table that needed to be addressed for a deal on modalities to come together.” While Schwab is “disappointed” with Lamy’s decision, she added, “The US remains committed to working with the WTO and our trading partners to reach a successful Doha outcome, one that fulfills the promise of this round.”

Ambassador Schwab Welcomes Taiwan’s Membership in WTO Agreement on Government Procurement

On December 10, U.S. Trade Representative Susan C. Schwab welcomed Taiwan’s accession to the WTO Agreement on Government Procurement (GPA), which is “…a culmination of many years of hard work.” Under the GPA, Taiwan will open its government procurement market to suppliers from the United States and other GPA Parties, and must conduct its procurements in a fair, transparent and predictable manner, in accordance the principles and procedures of the GPA. U.S. suppliers will be assured access to procurement opportunities in Taiwan worth approximately $20 billion annually. Firms from Taiwan will be eligible to compete for U.S. and State government procurement that is covered by the GPA. According to the WTO press release on Taiwan’s accession, Albania, China, Georgia, Jordan, the Kyrgyz Republic, Moldova, Oman and Panama are in the process of negotiating their accession to the GPA.

Gutierrez Applauds Nomination of Gov. Bill Richardson, Highlights Foreign Policy Experience as Critical for Commercial Engagement

On December 3, Secretary of Commerce Carlos M. Gutierrez issued a statement on President-Elect Barack Obama’s nomination of Gov. Bill Richardson to be the next Secretary of Commerce: “The Department of Commerce is a vast agency with a diverse portfolio that ranges from promoting commerce and economic growth, to exercising stewardship over our oceans and waterways. “Gov. Richardson has strong international experience, which will serve him well at the Department of Commerce. In our global marketplace, America must be actively engaged, seeking to strengthen and grow our commercial and trading relationships.”

USTR Statement on Taiwan’s Accession to WTO Agreement on Government Procurement

In a December 1 statement, USTR welcomed the completion of negotiations on Taiwan’s accession to the WTO Agreement on Government Procurement (GPA). On November 28, Taiwan submitted its final offer of the procurement that it will cover under the GPA, which reflects the conclusion of long and intense negotiations. It is expected that the WTO Committee on Government Procurement will give formal approval to Taiwan's accession to the GPA at its next meeting, scheduled for December 9, in Geneva. Taiwan will become the 41st WTO Member to join the plurilateral GPA, which requires its signatories to give national treatment to the goods, services and suppliers of the other signatories. It also requires procurements to be conducted in a fair, transparent and predictable manner in accordance with specified principles and procedures.

Gutierrez Highlights Importance of Auto Industry, Underlines Need for Path to Viability

In a December 1 interview on CNN’s American Morning, Secretary of Commerce Carlos M. Gutierrez reiterated the Administration’s belief in the importance of America’s auto industry, and the need for the automakers to demonstrate a path toward financial viability. During the week of November 24, Secretary Gutierrez and Energy Secretary Bodman submitted letters to Chairmen Dodd and Frank, outlining specific benchmarks to determine financial viability.

View transcript of Secretary Gutierrez’s interview

View letters to Chairmen Dodd and Frank

U.S. Wins WTO Dispute Against EU’s Discriminatory Bananas Preference Program

On November 26, U.S. Trade Representative Susan C. Schwab announced that the WTO Appellate Body has found against the EU in the compliance proceeding brought by the United States against the EU’s bananas import regime. The Appellate Body also found against the EU in the parallel proceeding brought by Ecuador. “It is time for the EU to do the right thing and implement a tariff-only regime for bananas that meets the interests of all parties involved,” said Schwab. The United States brought this proceeding in June 2007 to challenge the EU’s import regime for bananas, which included a discriminatory tariff rate quota that allowed duty-free imports of bananas from only some countries. On May 19, 2008, a WTO dispute settlement panel found in favor of the United States. The EC appealed. In its report, the Appellate Body upheld all of the Panel’s findings. The Appellate Body rejected all of the EU’s procedural claims alleging the United States was barred from bringing this proceeding and agreed with the Panel that the EU’s duty-free tariff rate quota reserved only for some countries was inconsistent with Article XIII of the General Agreement on Tariffs and Trade 1994.

View USTR press release