May 2009 News

USTR Kirk, Egyptian Minister of Trade and Industry Rachid Discuss U.S.-Egypt Economic Ties

View the text of the USTR press release regarding the May 27 meeting between U.S. Trade Representative Ron Kirk and Egyptian Minister of Trade and Industry Rachid Mohammed Rachid. During their meeting, Kirk and Rachid discussed ways to expand U.S.-Egyptian economic ties, and signed a Plan for a Strategic Partnership, which aims to further promote U.S.-Egypt economic cooperation. They also noted the designation earlier this year, in cooperation with Israel, of two additional Qualifying Industrial Zones in Upper Egypt.

United States and Angola Sign Trade and Investment Framework Agreement

On May 19, U.S. Trade Representative Ronald Kirk and Angola Minister of External Affairs Assunção Afonso de Sousa dos Anjos signed a Trade and Investment Framework Agreement (TIFA) that will provide a forum to address trade issues and help enhance trade and investment relations between the United States and Angola. Commenting on the signing, Ambassador Kirk said that the United States “look(s) forward to using this TIFA as an opportunity to enhance and diversify the U.S.-Angolan trade and investment relationship.” A United States-Angolan Council on Trade and Investment will be formed under the TIFA to address a wide range of trade and investment issues that include, but are not limited to, trade capacity building, intellectual property and labor. U.S. exports to Angola in 2008 were about $400 million; U.S. imports from Angola were about $4.0 billion, over 95 percent of which is related to the oil and gas sector.

View USTR press release

USTR Kirk Discusses Next Steps on Trade Agenda at U.S. Chamber of Commerce
View the text of U.S. Trade Representative Ron Kirk’s remarks to the U.S. Chamber of Commerce on May 18 regarding the next steps on the USG’s trade agenda. While he noted that the Administration is seeking to finalize the Panama free trade agreement, working to resolve outstanding issues on the Colombia and Korea agreements, and seeking a way forward on the WTO Doha Round, Ambassador Kirk stated that USTR is also crafting new goals for the coming months and years. Kirk also urged support for important trade initiatives on their own merits, and that they not be rejected “for tradition’s sake,” as one element of the Administration’s strategy for fueling America’s future economic growth.

USTR Kirk Announces Agreement With EU in Beef Hormones Dispute
On May 13, U.S. Trade Representative Ron Kirk announced the signing of a Memorandum of Understanding (MOU) between the United States and the European Commission (EC) in the beef hormones dispute.  The agreement, which was signed in Geneva, will provide U.S. producers significant additional access, at zero duty, to the EU market for high-quality beef produced from cattle that have not been treated with growth-promoting hormones.  The EU import quota would be set at 20,000 tons in each of the first three years, and this would increase to 45,000 tons in the fourth year.  Under the MOU, the United States and the EC will seek to use experience gained in the first phase to enter into the second phase.  Before the end of the second phase, they would seek to conclude a follow-on agreement that will extend the arrangement for a number of additional years.  Ambassador Kirk praised the agreement, stating, “… it gives us an opportunity to add the EU to the leading export destinations for high-quality U.S. beef, which will provide a substantial boost for U.S. ranchers and meat packers and their employees.”  View USTR press release

Secretary Locke Meets with Korea Trade Minister Kim Jong-Hoon
Commerce Secretary Gary Locke met for the first time with South Korea Minister for Trade Kim Jong-Hoon at the Commerce Department on May 13. The two officials recognized the importance of the $83 billion in bilateral goods trade in 2008, and expressed support for continuing to deepen cooperation on trade and investment issues. “Korea, with a $1 trillion economy, is our eighth largest export market, and the Department of Commerce is committed to ensuring that U.S. companies can compete and win in this vibrant Asian market,” said Secretary Locke. Secretary Locke and Minister Kim agreed that the U.S.-Korea Free Trade Agreement has the potential to provide significant economic and strategic benefits to both countries, and committed to work together to find a way forward.

View Commerce press release

USTR Kirk’s Press Briefing at WTO Headquarters

View the text of U.S. Trade Representative Ron Kirk’s May 13 press briefing at WTO headquarters in Geneva. Ambassador Kirk stated that during his meetings at the WTO, he reiterated the Administration’s commitment to successfully concluding the Doha Round, both as an overall response to the current economic crisis and to the “sustenance of many of our least developed countries.” The USG defines success in the Doha Round as “a balanced and ambitious agreement with meaningful market access gains for all involved.” Kirk called on “advanced developing countries, to make the kind of choices that are required for those of us who choose to seek leadership here at the WTO.”

President Obama Proclaims World Trade Week 2009

View the text of President Obama’s proclamation of the week of May 17-23, 2009 as World Trade Week. Noting the opportunity World Trade Week presents to reaffirm trade’s benefits and the United States’ commitment to the “global marketplace that creates good jobs and lifts up American families,” the President stated that “In difficult economic times, it is even more important for American industry to take advantage of every opportunity for export-driven growth.” Stating that his Administration “… will negotiate future trade agreements to create opportunities for all Americans,” he added that the USG “is committed to building on existing trade agreements and bilateral investment treaties in an open and transparent manner.” The Administration is developing a plan of action for pending free trade agreements and is working with U.S. trading partners “to advance a strong market-opening agreement for agriculture, industrial goods, and services through the Doha Development Round and through other negotiations.”

USTR Kirk Welcomes Senate Confirmation of Demetrios Marantis as Deputy U.S. Trade Representative View the text of U.S. Trade Representative Ron Kirk’s May 6 statement welcoming the Senate’s confirmation of Demetrios Marantis as Deputy United States Trade Representative. Marantis will be responsible for U.S. trade negotiations and enforcement in Asia and Africa. He will also lead USTR global initiatives on trade and development, labor, and the environment. Marantis has extensive trade policy experience. He served most recently as the Chief International Trade Counsel for the Senate Finance Committee, advising Finance Committee Chairman Max Baucus and other members of the Committee on trade and economic issues, and previously served at USTR as Associate General Counsel, responsible for provisions in the U.S.-Singapore and U.S.-Chile Free Trade Agreements.

United States and EU Reach Provisional Agreement in Beef Dispute
On May 6, U.S. Trade Representative Ron Kirk and EU Trade Commissioner Catherine Ashton agreed in principle on a way forward in the long-running dispute over hormone-treated beef.  The agreement in principle would provide additional duty-free access to the EU market for high-quality beef produced from cattle that have not been treated with growth-promoting hormones – 20,000 tons in the first three years and increasing to 45,000 tons beginning in the fourth year.  Under the agreement, the United States will maintain existing sanctions and will not impose new sanctions on EU products during the initial three-year period, and will eliminate all sanctions during the fourth year.  The two sides will refrain from further litigation at the WTO regarding the EU’s ban on beef treated with certain growth-promoting hormones for at least 18 months.  Before the end of the four-year period, the two sides will seek to conclude a longer-term agreement. View USTR press release

United States-Japan Statement on Kirk - Nikai Meeting
View the text of the USTR press release regarding U.S. Trade Representative Ron Kirk’s meeting with Japan Minister of Economy, Trade and Industry of Japan Toshihiro Nikai on May 4 to discuss a variety of bilateral and multilateral trade-related issues. They agreed that all countries should remain vigilant about their responses to the current financial and economic crisis and reaffirmed that protectionism must be avoided, and agreed to work together closely to achieve a successful Doha Development Round that is both ambitious and balanced. Kirk and Nikai reaffirmed their joint view, shared by other interested countries, on the need for China to withdraw the implementation of its certification rules for government procurement of 13 IT security products -- rules which are inconsistent with international norms.

Secretary Locke Discusses Trade Promotion Agreement with Colombian Minister for Trade

On May 1, Commerce Secretary Gary Locke held his initial meeting with Colombia Minister for Trade, Industry and Tourism Luis Guillermo Plata. During their meeting, Secretary Locke and Minister Plata reaffirmed their governments’ commitmentto move forward on progress towards the U.S.-Colombia Trade Promotion Agreement. The two leaders also underscored the importance of building stronger business ties through activities like joint cooperation in trade capacity-building for small- and medium-sized enterprises and good governance programs.
View Commerce press release

USTR Kirk’s Statement on WTO Director-General Pascal Lamy’s Reappointment
View the text of U.S. Trade Representative Ron Kirk’s statement welcoming the re-appointment of Pascal Lamy to a second four-year term as WTO director-general. Kirk commented that Lamy’s reappointment will provide “welcome and much-needed continuity at the WTO.” The United States, he said, is looking forward to working with Lamy and other WTO members to grow opportunities “… in a rules-based trading system that works for Americans … and produces new and tangible benefits in which all WTO Members can share.”

USTR Releases 2009 Special 301 Report
USTR released its annual “Special 301” Report on the adequacy and effectiveness of intellectual property rights (IPR) protection by U.S. trading partners on April 30. Significant developments in this year’s Special 301 Report include Canada’s elevation to the Priority Watch List for the first time, as well as the elevation of Algeria and Indonesia. As it did last year, the report highlights the prominence of IPR concerns with respect to China (which is included on the Priority Watch List) and Russia, despite some evidence of improvement in both countries. Of the 77 trading partners reviewed for this year’s list, 12 countries were placed on the Priority Watch List: China, Russia, Algeria, Argentina, Canada, Chile, India, Indonesia, Israel, Pakistan, Thailand, and Venezuela. These countries do not provide an adequate level of IPR protection or enforcement, or market access for persons relying on intellectual property protection. Thirty-three (33) trading partners are on the lower level Watch List, meriting bilateral attention to address the underlying IPR problems. Paraguay will continue to be monitored under Section 306 monitoring under a bilateral Memorandum of Understanding that establishes objectives and actions for addressing IPR concerns in that country. The Administration will conduct Out-of-Cycle Reviews for Fiji, Israel, the Philippines, Poland, and Saudi Arabia to monitor progress on specific IPR issues. View USTR press release

Ambassador Kirk’s Statement on China’s Action to Modify Information Security Testing Rules

View the text of USTR Kirk’s April 29 statement welcoming China’s announcement that it has eliminated Information Security testing and certification mandates for information technology products used in the commercial marketplace. He called China’s action “a step in the right direction, reflecting its acknowledgement that mandated information security certification schemes rules are not appropriate for commercial information technology products.” At the same time, Kirk said the Administration “remain(s) very concerned about China’s plans to mandate on May 1, 2010 the information security testing and certification rules for products procured by China’s government in a manner not consistent with global norms.”