October 2008 News

Gutierrez Releases Report on Impact of Litigation Environment on Attracting Foreign Investment

On October 29, Commerce Secretary Carlos M. Gutierrez released a report on the U.S. litigation environment and trends in foreign direct investment (FDI) flows into America during the U.S. Chamber of Commerce’s 9th Annual Legal Reform Summit. “In the wake of economic challenges, it is important that America remains open and does not retreat into economic isolationism,” Gutierrez said. “Open markets and free trade make our country the number one destination for global capital, which drives innovation, exports and jobs here at home.” The report notes that high litigation costs impact America’s ability to compete and recommends sustained efforts to bring these costs in line with those of other nations. It also highlights the pressing need for additional economic research on the impact of a litigious society on a country’s ability to attract FDI.

View Commerce press release on report

View text of Secretary Gutierrez’s remarks

USTR Releases Korea – United States Free Trade Agreement Fact Sheets

View a series of fact sheets released by USTR regarding the Korea-United States Free Trade Agreement (KORUS FTA).

The KORUS FTA and the States

The Case for the KORUS Free Trade Agreement

KORUS FTA: Opportunities for Automotive Exports

KORUS FTA: New Opportunities for Financial Services

KORUS FTA: New Opportunities for Agriculture

KORUS FTA: New Opportunities for U.S. Manufacturers

Commerce Deputy Secretary Sullivan Kicks Off U.S.-Georgia Business Summit

On October 27, Deputy Secretary of Commerce John J. Sullivan opened the first U.S.-Georgia Business Summit before more than 180 participants. Deputy Secretary Sullivan reaffirmed America’s commitment to support Georgia’s democracy, territorial integrity and security, stating, “We stand by Georgia.” This commitment is reflected in America’s actions, including a multi-year $1 billion commitment of economic assistance announced by President Bush in September. Among the objectives of the trip is to encourage bilateral trade ties between Georgia and the United States. While trade with Georgia was nearly $600 million last year, Sullivan said, “There is tremendous potential for growth in our bilateral trading relationship.”

View text of Sullivan’s remarks

USTR Announces Staff Promotions, Reorganization

View the text of an October 24 USTR press release regarding staff promotions and some organizational changes.

Partial Re-Allocation of FY 2008 Tariff Rate Quota for Refined Sugar

On October 27, USTR announced a re-allocation of a portion of the FY 2008 tariff-rate quota (TRQ) for refined sugar. TRQs allow countries to export specified quantities of a product at a relatively low tariff, but subject all imports of the product above those quantities to a higher tariff. USTR is therefore re-allocating the 68,278 MTRV portion to the global refined sugar TRQ allocation, which may be supplied by any country on a first-come, first-served basis, subject to any other provision of law. The re-allocation will take effect upon publication of a Federal Register notice by the USTR.

View USTR press release

Secretary Gutierrez Announces Launch of EconomicRecovery.gov Interagency Web Site

Secretary of Commerce Carlos M. Gutierrez took questions from the public concerning the current U.S. economy and announced a new interagency Web site led by the Commerce Department in an Interactive online forum, “Ask the White House,” on October 24. The new Web site, EconomicRecovery.gov, is a resource for the latest information from government agencies on America’s economic recovery for people to keep their homes, find jobs and protect their savings.

View Ask the White House transcript

Commerce Secretary Gutierrez Praises Panama’s Role in New Pathways to Prosperity in the Americas Initiative

In remarks to the U.S.-Panama Business Council on October 23, U.S. Commerce Secretary Carlos M. Gutierrez noted that Panama is an important friend, ally and trading partner. “We are very pleased that Panama has agreed to host the first Ministerial in December,” Gutierrez said. In his remarks, he discussed the potential for increased U.S.-Panama trade and investment, citing Panama’s high growth rate and the pending U.S.-Panama free trade agreement. The Secretary noted that the United States is Panama’s number one export market, with 36 percent of its total exports coming into the United States. In 2007, U.S.-Panama bilateral trade totaled $4.1 billion, up from nearly $3.1 billion in 2006.

View Commerce press release

Commerce Secretary Gutierrez Applauds New Opportunities for U.S.–India Clean Energy Partnerships

In his remarks to the U.S.-India Business Council “Green India” Summit on October 15, Secretary of Commerce Carlos M. Gutierrez said that India has the potential to be one of the world’s largest clean energy markets, noting that clean energy technologies have moved to the forefront of India’s energy infrastructure and investment opportunities. U.S. companies produce world-class clean energy technologies, Gutierrez said, and the United States is committed to being India’s partner in providing clean, sustainable energy. Noting that India will have a reliable fuel supply for its civilian reactors after President Bush signed the landmark U.S.-India nuclear cooperation bill, the Secretary stated, “The U.S. will gain access to a growing market for civilian nuclear technologies.”

View text of Secretary Gutierrez’s remarks

WTO’s Appellate Body Vindicates U.S. Imposition of Sanctions After EU Claimed Compliance in Hormones Dispute

On October 16, U.S. Trade Representative Susan C. Schwab announced that the WTO Appellate Body has concluded that the United States did not violate its WTO obligations by maintaining additional duties on certain EU products after the EU claimed it had come into compliance by amending its ban on beef from animals treated with growth-promoting hormones. Schwab commented, “The Appellate Body’s report confirms that WTO Members that are subject to additional duties for failing to bring themselves into compliance with the WTO’s rulings and recommendations must do more than simply claim compliance in order to obtain relief from such duties.” The Appellate Body also concluded that because the Panel made certain legal errors in its analysis of the scientific basis for the EU’s amended ban, the question of whether the EU’s amended ban is WTO-consistent remains open. The dispute over the EU ban on beef from animals administered certain growth promoting hormones dates back to 1996 and is one of the longest-standing disputes in the history of the WTO.

View USTR press release

United States and Singapore Hold Fourth Annual Free Trade Agreement Review

View the text of the USTR press release regarding the fourth annual United States-Singapore Free Trade Agreement (FTA) review, held October 10. During the review, the two sides applauded the continued growth in their trade and investment relations since the FTA came into force on January 1, 2004, and the close cooperation on ASEAN, APEC and WTO issues that the agreement has helped to foster. This annual process provided an opportunity to review formally issues related to the implementation of the agreement, following up on discussions between the two sides throughout the past year. At the meeting, the two sides discussed how to address issues and concerns related to market access for agricultural and textile products, intellectual property rights and telecommunications, and environmental cooperation. The U.S.-Singapore FTA also serves as a foundation for broader cooperation between the two countries on regional and multilateral bases. The announcement by the United States on September 22, 2008 of its intention to launch negotiations on the terms of its participation in the Trans-Pacific Strategic Economic Partnership Agreement, of which Singapore is a founding member, is only the most recent example of this expanding partnership.

USTR Statement on Anti-Counterfeiting Trade Agreement

View the text of USTR’s October 10 statement regarding the October 8-9 discussions in Tokyo regarding the proposed Anti-Counterfeiting Trade Agreement (ACTA). During their discussions, the participants reaffirmed their goal to combat global infringements of intellectual property rights, particularly in the context of counterfeiting and piracy. They will work to accomplish this by increasing international cooperation, strengthening the framework of practices that contribute to effective enforcement, and strengthening relevant IPR enforcement measures themselves. The participants also focused on criminal enforcement of IPR, and continued their previous discussions of civil enforcement of IPR.

USITC Finds U.S. Beef Exports Constrained by Inconsistent Animal Health, Food Safety Measures

According to a U.S. International Trade Commission report, Global Beef Trade: Effects of Animal Health, Sanitary, Food Safety, and Other Measures on U.S. Beef Exports, U.S. beef processors and beef cattle ranchers lose billions of dollars in export opportunities each year because of animal health and food safety measures in other countries that are inconsistent with international standards and vary by country. Animal health and food safety regulations in Japan and Korea accounted for most of the export losses over the period, according to the report. Many countries restricted imports of U.S. beef following the 2003 discovery of bovine spongiform encephalopathy (BSE) in a dairy cow of Canadian origin in the U.S. cattle herd. These restrictions resulted in significant losses in exports and industry revenues over the period studied. The effect of identified animal health and food safety regulations on U.S. beef exports outweighed the effects of tariffs and TRQs over the period studied.

View USITC press release

Secretary Gutierrez Announces DOC Civil Nuclear Trade Initiative to Promote U.S. Nuclear Industry Sales Abroad

In his remarks at the Nuclear Energy Summit on October 8, Commerce Secretary Carlos M. Gutierrez said, “Nuclear power can play a leading role in building a secure, sustainable energy future for our county and creating jobs and opportunities for our citizens.” Noting the importance of exports to U.S. economic growth, Gutierrez said that through the Civil Nuclear Trade Initiative, the Commerce Department can be a partner in the nuclear renaissance by helping to open international markets for America’s world-class nuclear technologies. The Civil Nuclear Trade Initiative consists of: a Nuclear Industry Trade Advisory Committee; a Nuclear Energy Working Group with the Trade Promotion Coordinating Committee; Commerce Department/State Department/Energy Department cooperation to promote U.S. nuclear technology for the first time at the recent International Atomic Energy Agency general meeting in Vienna; and organizing future civil nuclear trade missions.

View Commerce press release

Secretary Gutierrez Travels to Brazil for Third U.S.-Brazil CEO Forum

On October 6, Commerce Secretary Carlos M. Gutierrez announced that he will chair the U.S.-Brazil Commercial Dialogue Ministerial Meeting and co-chair the third meeting of the U.S.-Brazil CEO Forum with Assistant to the President for International Economic Affairs Dan Price in Sao Paulo, October 9-10, 2008. Gutierrez will discuss ways to strengthen the U.S.-Brazil economic relationship between senior government officials and business leaders from both nations. Total trade between the United States and Brazil was $50.3 billion in 2007, an increase of 10 percent from the previous year. U.S. exports to Brazil in 2007 were $24.6 billion, an increase of 28 percent from the previous year; the United States imported $25.6 billion in goods from Brazil in 2007.

View Commerce press release

Ambassador Schwab Praises Trade Preference Extension, Calls for FTA Passage

In an October 3 statement, U.S. Trade Representative Susan C. Schwab praised the recent extension of the Andean Trade Preference Act (ATPA) and the Generalized System of Preferences (GSP), and called upon Congress to go a step further and approve the Free Trade Agreements (FTAs) with Colombia, Panama and Korea. Noting that the extension of the ATPA and GSP only represents the “import side,” Ambassador Schwab stated, “The House and Senate now need to take up the issues facing American exports, and create a level playing field for American goods and services sold abroad.” She added, “For the past four quarters, exports have accounted for almost two-thirds of our economic growth. Opening markets around the world to U.S. goods and services can only help boost our economy and create new, and higher-paying jobs.”

United States and Uruguay Sign Two Protocols to Bilateral Trade and Investment Framework Agreement
On October 2, the governments of the United States and Uruguay signed two protocols to their bilateral Trade and Investment Framework Agreement (TIFA).  The protocols, which were signed by Uruguayan Minister of Foreign Affairs Gonzalo Fernández and Assistant U.S. Trade Representative Everett Eissenstat, cover substantive commitments in the areas of trade facilitation and public participation in trade and environment. Both governments pledged continued cooperation in these areas, and dialogue also progresses under the TIFA work program.  This ongoing dialogue may result in the conclusion of additional protocols in the future. In addition to concluding the two protocols, the United States and Uruguay signed a Memorandum of Understanding to advance cooperation on renewable energy and energy efficiency. The United States and Uruguay signed the United States – Uruguay TIFA on January 25, 2007.   View USTR press release

Commerce Deputy Secretary to Host U.S.-Georgia Business Summit in Tbilisi

On October 2, the Commerce Department announced that Deputy Secretary John Sullivan will host the U.S.-Georgia Business Summit in Tbilisi, Georgia, October 27, 2008, on the occasion of a DOC-certified trade mission to Georgia the week of October 26-28, 2008. U.S. and Georgian business leaders and senior officials will attend the summit on Monday, October 27, which will highlight U.S. resources for expanding trade and investment with Georgia and opportunities in the country’s growth sectors. “The World Bank ranks Georgia 15th out of 181 countries for ease of doing business,” Sullivan said. “This emerging economy offers U.S. businesses the opportunity to expand into a dynamic and business-friendly market eager to work with U.S. partners.”

USTR Announces Agreement on Extension of Time for Costa Rica to Join CAFTA-DR

On October 1, U.S. Trade Representative Susan C. Schwab announced that the United States and its five CAFTA-DR partners (the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) reached an agreement that will provide more time for Costa Rica to join the Dominican Republic – Central America – United States Free Trade Agreement (CAFTA-DR). Schwab stated that while Costa Rica has already made “considerable progress… (it) needs more time to adopt necessary implementing legislation before the CAFTA-DR can enter into force for Costa Rica.” The agreement gives Costa Rica until January 1, 2009 to complete its implementing process. She added that the USG “will continue to work closely with the Costa Rican government to ensure it completes the appropriate implementing measures.” The CAFTA-DR is now in force for all signatories, except Costa Rica.

View USTR press release