Office of International Affairs

International Trade (ITT)

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The Office of International Trade (ITT) provides policy analysis and recommendations to senior Treasury policymakers with respect to U.S. trade and financial services policy, represents

Treasury in interagency trade policy deliberations, and participates in trade negotiations led by the United States Trade Representative. ITT represents Treasury in the Trade Policy Staff Committee, which helps develop U.S. trade policy, and in the Committee for the Implementation of Textile Agreements. ITT works with other agencies to implement U.S. trade laws and policy, as well as enforce rules and agreements to reduce and eliminate foreign trade barriers. ITT also works with other agencies to promote the integration of developing countries, transition economies, and emerging economic powers into the world trading system through expanded World Trade Organization (WTO) membership, more open regimes for goods and services, and appropriate use of trade preferences. ITT staff also plays a lead role (along with USTR) in financial services negotiations in the WTO, bilateral and regional Free Trade Agreements (FTAs) and Bilateral Investment Treaties. In this capacity, the office consults closely with the U.S. financial services sector, the congress and the U.S. regulators to develop a negotiating position, which it presents in the negotiations.

2004 saw substantial progress in the adoption and negotiation of bilateral and regional FTAs. Agreements with Chile and Singapore , negotiated in 2003, came into force in 2004. ITT assisted the USTR in completing negotiations with Australia , Central America and the Dominican Republic , Morocco and Bahrain in 2004. Most pertinently, these agreements help secure expanded trade, improved market access for U.S. financial services suppliers, and sound customs regimes in these important markets. The FTAs with Australia , Morocco , and Bahrain were approved by Congress. ITT also participated in FTA negotiations with the entire Western Hemisphere (through the Free Trade Area of the Americas ), members of the Southern Africa Customs Union, Panama , Andean Pact countries and Thailand .

Treasury also plays a central role in the multilateral trade negotiations in the WTO covering industrial goods, services (especially financial services), rules, agriculture, and a broad array of other trade issues. ITT is particularly engaged in issues such as the revenue implications of trade liberalization as well as the impact of MFN tariff reduction on trade preferences. ITT played a key role, along with other IA offices, in the establishment of the IMF Trade Integration Mechanism (TIM), a new initiative to assist countries with balance of payments problems as a result of trade adjustment.

ITT played an ongoing role in the coordination and implementation of trade policy through the Trade Policy Staff Committee and other fora. Issues included (1) the implementation of U.S. trade law, (steel safeguard actions under Section 201 of the Trade Act, reviews of foreign trade practices under Section 301, and Trade Promotion Authority); (2) the implementation and country eligibility review of USG trade preference programs; (3) the promotion of trade-related capacity building programs at the IMF, World Bank and other multilateral development banks in support of the trade agenda; and (4) the CITA implementation of the special China textile safeguard.