Publication Number: 3659

Report Title: International Economic Review: U.S.-Japan Trade: Trends and Negotiations; USITC Releases Report on the Impact of CBERA in 2001-2002; United States Trade With Mercosur; Implementation of ATPDEA Changes Composition of Imports Under ATPA in 2003

Author's name(s): Diane Manifold, Walker A. Pollard, James Stamps, Joanne Guth

Date Published: December 2003

Report Description/Introductory Text: According to “U.S.-Japan Trade: Trends and Negotiations,” the U.S. trade deficit with Japan increased from $51.2 billion in 1996 to $73.0 billion during 2002, or by 43 percent. This article analyzes trends during 1996-2002 of the leading U.S. exports to and imports from Japan. In addition, it reviews two major sets of bilateral negotiations aimed at addressing both sectoral and structural issues during this period.

“USITC Releases Report on the Impact of CBERA (Caribbean Basin Economic Recovery Act) in 2001-2002" talks about its biennial report recently released. The report shows that the impact of imports under CBERA on the overall U.S. economy, industries, and consumers continued to be negligible in 2001-2002, despite enhancements to the program in 2000. The enhancement (Caribbean Basin Trade Partnership Act or CBTPA) may lead to significant future effects in the textiles and apparel sector.

In “United States Trade With Mercosur,” beginning in 2002, the Southern Common Market (Mercosur) countries of Argentina, Brazil, Paraguay, and Uruguay, reversed their longstanding combined trade deficit with the United States. The United States recorded a $5.7 billion trade deficit with the Mercosur countries in 2002, down from a $9.9 billion trade surplus in 1997. This trend continued into 2003. Nevertheless, the Mercosur countries increased their share of total U.S. imports between 1997 and 2002–a challenge to the conventional view that Mercosur countries are at a disadvantage relative to Andean, Caribbean, and Central American countries in terms of access to the U.S. market. This article investigates recent U.S.-Mercosur trade patterns.

“Implementation of ATPDEA Changes Composition of Imports Under ATPA in 2003” shows that the composition of U.S. imports under the Andean Trade Preference (ATPA) began to change with the implementation of the Andean Trade Promotion and Drug Eradication Act (ATPDEA), an enhancement of ATPA, on October 31, 2002. Data through August 2003 also indicate that most U.S. imports from the region now enter the U.S. market duty free.

Topics Covered: USITC, Caribbean Basin Trade Partnership Act (CBTPA), Caribbean Basin Economic Recovery Act (CBERA), Southern Common Market (Mercosur), Andean Trade Preference Act (ATPA), Andean Trade Promotion and Drug Eradication Act (ATPDEA), U.S.-Japan Framework for a New Economic Partnership (Framework Agreement), U.S. Generalized System of Preferences (GSP), North American Free Trade Agreement (NAFTA), trade deficit with Japan, Japanese deregulation

Countries: United States, Japan, Argentina, Brazil, Paraguay, Uruguay, Dominican Republic, Honduras, Trinidad and Tobago, Costa Rica, Guatemala, El Salvador, Bolivia, Colombia, Peru, Ecuador

HTS Numbers: 640399, 090111, 270900, 720712, 710812, 240120, 880230, 852520

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