January 2009 News

United States Wins WTO Dispute Over Deficiencies in China’s IPR Laws

On January 26, Acting U.S. Trade Representative Peter Allgeier announced that a WTO dispute settlement panel has found important aspects of China’s intellectual property rights (IPR) regime to be inconsistent with China’s obligations under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement). The United States brought claims against China because of serious concerns about several shortcomings in China’s legal regime for protecting and enforcing copyrights and trademarks on a wide range of products. Allgeier stated, “The findings in the panel report will make an important contribution to China’s efforts to improve its IPR enforcement regime, just as the imminent prospect of a WTO dispute contributed to China's cutting its threshold for criminal prosecution of copyright infringement in half just before the United States filed its complaint.”

View USTR press release

A Basic Guide to Exporting Provides Comprehensive Overview

Companies which are new to exporting or experienced exporters who need a refresher on the latest ideas and techniques will find a comprehensive overview of how to export in A Basic Guide to Exporting. This completely revised and updated edition provides nuts-and-bolts information exporters will need to meet the challenges of the world economy by examining a number of issues, including: how to identify markets for your company’s products; how to finance your export transactions; and sources of free or low-cost export counseling. Exporters will also find many real-life examples that illustrate the principles of exporting, samples of forms needed to export, and—in a valuable appendix—information on how to obtain guidance and counseling offered by the federal government through its domestic network of more than 100 Export Assistance Centers and through commercial counselors located in U.S. embassies abroad. The Guide is available for purchase from retail booksellers and from the U.S. Government Bookstore. To order by telephone, please call (866) 512-1800.

Notice Regarding Acceptance of Competitive Need Limitation Waiver, Further Review of Country Practice Petitions for 2008 GSP Annual Review

View the Federal Register notice announcing that Competitive Need Limitation (CNL) waiver petitions are being accepted for further review and country practice petitions continue to be under evaluation for acceptance in the 2008 GSP Annual Review. This notice also sets forth the schedule for comment and public hearings on the CNL waiver petitions, requesting participation in the hearings, submitting pre-hearing and post-hearing briefs, and commenting on the U.S. International Trade Commission (USITC) report on probable economic effects. It also provides a point of contact for obtaining further information.

Statement of U.S. Trade Representative Susan C. Schwab Regarding Entry into Force of Peru TPA

On January 16, U.S. Trade Representative Susan C. Schwab issued a statement regarding the entry into force of the United States-Peru Trade Agreement (TPA). Schwab noted the President’s proclamation to implement the U.S.-Peru TPA as of February 1, 2009, adding that the USG “…has worked closely with the Government of Peru to ensure that the obligations and responsibilities of each party have been met under this Agreement. “ She stated that this is the first free trade agreement in force that will reflect the enhanced labor and environmental standards set out in the May 10, 2007, agreement between the Bush Administration and congressional leadership. The Agreement was signed in April 12, 2006. It was approved by the U.S. House of Representatives on November 8, 2007, and by the U.S. Senate on December 4, 2007. President Bush signed the legislation implementing the Agreement on December 14, 2007.

View USTR press release

U.S. Files WTO Case Challenging EU Restrictions on U.S. Poultry Exports

On January 16 , USTR Susan C. Schwab announced that the United States was requesting WTO dispute settlement consultations with the EU under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures and the General Agreement on Tariffs and Trade 1994 regarding the EU’s ban on the import and marketing of poultry meat and poultry meat products processed with pathogen reduction treatments judged safe by both U.S. and European food safety authorities. Noting that the poultry treatments at issue have been widely and safely used in the United States for many years and that the EU’s own scientists have repeatedly found the treatments to be safe and effective, Schwab said, “…We have tried to address this issue through dialogue with the EU for more than eleven years, and neither the European Commission nor EU Member States have offered any legitimate, science-based reason for continuing to block our poultry.” While the United States would obviously still prefer that this matter be resolved without the need for lengthy and costly litigation, Schwab said “the United States seeks to move the process forward and will act to defend poultry and other U.S. agricultural exports against non-science based restrictions imposed by our trading partners.”

View USTR press release

USTR Announces Conclusion of Special 301 Out-of-Cycle Review for Taiwan

On January 16, USTR recognized Taiwan’s progress on protection and enforcement of intellectual property rights by removing Taiwan from the Special 301 Watch List. The decision to remove Taiwan from the Special 301 Watch List resulted from an “Out-of-Cycle Review” announced last April in the 2008 Special 301 report. The review examined in detail the adequacy and effectiveness of intellectual property rights (IPR) protection and enforcement in Taiwan, with a focus on specific issues identified in the 2008 Special 301 Report. The United States will continue to carefully monitor Taiwan’s progress in improving its IPR regime, including enactment of pending legislation to fight Internet piracy and efforts to improve customs and border enforcement to prevent the import and export of IPR infringing goods.

View USTR press release

USTR Announces Revised Trade Action in Beef Hormones Dispute
On January 15, U.S. Trade Representative Susan C. Schwab announced that USTR is modifying the list of EU products subject to additional duties in connection with WTO dispute settlement rulings in the EU – Beef Hormones dispute. The modifications, which also help respond to a court-ordered review, make additions to and deletions from the list of the products subject to additional duties, change the EU member states whose products are subject to the duties, and for one product, increase the level of the additional duties. In 1999, the WTO Dispute Settlement Body authorized the United States to impose increased tariffs on EU products with a total annual trade value of $116.8 million. On October 16, 2008, the WTO Appellate Body confirmed that the United States has a continuing right to impose trade measures until the EU – Beef Hormones dispute is resolved. The modified duties announced remain within the level authorized by the WTO. The details of the modifications to the duties imposed on products of the EU are set out in a Federal Register notice which has been posted on USTR’s website and which has been sent to the Office of the Federal Register for publication. View USTR press release

United States and Iceland Sign “Trade and Investment Cooperation Forum” Agreement

On January 15, Assistant U.S. Trade Representative for Europe and the Middle East Chris Wilson and Icelandic Minister of Industry and Energy Össur Skarpheðinsson signed in Reykjavik the U.S.-Iceland Trade and Investment Cooperation Forum Agreement, which will provide a forum for expanding and strengthening bilateral trade and investment relations between the United States and Iceland. Wilson called the signing of the agreement “a part of a comprehensive U.S. effort to support the Icelandic Government, and will provide a vehicle for deepening and broadening already strong U.S.-Icelandic economic relations.” Two-way goods trade between the United States and Iceland was $835 million in 2007. U.S. goods exports to Iceland in 2007 totaled $630 million, including aircraft, inorganic chemicals, vehicles, and machinery. U.S. exports of agricultural products to Iceland totaled $19 million.

View USTR press release

Fact Sheet on Japan Reform Agenda

View the text of a fact sheet released by USTR regarding the reform agenda with Japan. The United States remains actively engaged with Japan on a broad agenda of regulatory and related reforms to further open Japan’s market and help spur greater economic growth and competition through new commercial opportunities and improvements to Japan’s business environment. The focal point for this intensive engagement has been the U.S.-Japan Regulatory Reform and Competition Policy Initiative (Regulatory Reform Initiative), launched in mid-2001 and now in its eighth year. While a broad array of results has been realized to date through this initiative, more work on new and existing issues also remains to be done.

Work has focused in several key business sectors – including telecommunications, information technologies, and medical devices/pharmaceuticals – as well across a number of cross-cutting issues ranging from regulatory transparency to competition policy.

USITC Releases Shifts in U.S. Merchandise Trade 2007

Shifts in U.S. Merchandise Trade 2007, an annual compendium of data and analysis examining changes in trade with key U.S. partners and in crucial U.S. industries, was released by the U.S. International Trade Commission (USITC) on January 7. Users will find a comprehensive review of U.S. trade performance in 2007, focusing on changes in U.S. exports, imports, and trade balances of key natural resource, agricultural, and manufacturing industries, as well as changes in U.S. trade with major partners and groups. In 2007, U.S. merchandise exports reached a record level with every sector except textiles and apparel experiencing export growth. The transportation equipment sector saw the largest increase in absolute terms, while chemicals and related products, agricultural products, and minerals and metals also saw significant growth. Canada, China, Mexico, and Japan accounted for 60 percent of the U.S. merchandise trade deficit in 2007. China alone accounted for nearly 30 percent of the trade deficit, while the trade deficits with Canada and Japan declined.

View USITC press release