Express services negotiations within the WTO, production sharing developments in 1999, and new U.S. legislation affecting the apparel industry are among the topics explored in the current issue of Industry Trade and Technology Review (ITTR), a quarterly publication of the U.S. International Trade Commission's Office of Industries.

Industry Trade and Technology Review (ITTR) contains articles originating from research and analysis conducted by International Trade Commission (ITC) staff as part of its responsibilities to provide advice and technical information on industry and trade issues. The ITTR provides analysis of important issues and insights into the global position of U.S. industries, the technological competitiveness of the United States, and implications of trade and policy developments.

The ITTR is a publication of the Office of Industries. The opinions and conclusions it contains are those of the authors and are not the views of the Commission or of any individual Commissioner.

The current issue (July 2000) includes the following articles:

• Express Services: Issues for Negotiation in the World Trade Organization -- During the current services round, which recommenced in January 2000 as mandated by the General Agreement on Trade in Services, express delivery services (express services) will likely be the subject of intense negotiations. The U.S. government and industry representatives seek not only to negotiate trade-liberalizing commitments from more countries, but also to redefine the scope of the express services industry to better reflect the extensive range of intermediate services that express carriers perform between pickup and delivery. These services include, for instance, radio communication, freight-forwarding, customs brokerage, and transport. This article provides background information on the express services industry, examines international trade issues affecting express service providers, and discusses the current state of negotiations on express services within the WTO.

• Production Sharing Update: Developments in 1999 -- Investment in production sharing operations (the use of U.S.-made components in foreign assembly plants) has become an integral part of global efforts to reduce manufacturing costs and has contributed to the accelerated pace of cross-border integration of manufacturing in North America and the Caribbean Basin. Imports that incorporate U.S. content can enter the United States either free of duty or at reduced duties under the production sharing provisions (9802.00.60 -.90) of chapter 98 of the Harmonized Tariff Schedule (HTS), which provide the only U.S. source of data for documenting the use of U.S. components in foreign assembly. This article highlights 1999 developments regarding imports under the production sharing provisions, cross-border integration of manufacturing in North America and the Caribbean Basin, and the use of U.S.-made components in imports from Asia and Europe.

• Apparel Market: New U.S. Legislation Places CBERA Countries on a More Equal Competitive Basis with Mexico -- New U.S. legislation will give beneficiary countries under the Caribbean Basin Economic Recovery Act (CBERA) tariff treatment for apparel that is essentially equivalent to the trade preferences being granted to similar goods from Mexico under the North American Free Trade Agreement (NAFTA). U.S. imports of most apparel from CBERA countries will be eligible to enter free of duty beginning on October 1, 2000, thereby eliminating a major competitive disadvantage faced by these countries with Mexico since the implementation of NAFTA in 1994. The new legislation is expected to benefit (1) U.S. textile producers by stimulating U.S. exports of yarns and fabrics to CBERA countries, and (2) U.S. firms assembling apparel of U.S. components in CBERA countries by improving their ability to compete in the U.S. market with Asian apparel producers, who seldom use U.S. materials. This article examines the new legislation, competitive conditions in the industry segment making undergarments and outerwear T-shirts, and the recent business strategies and outlook for U.S. producers.

Industry Trade and Technology Review (USITC Publication 3335, July 2000) will be posted on the ITC's Internet server at www.usitc.gov. A cumulative list of articles published in the report series is also posted. The ITTR will also be available at regional federal depository libraries in the United States. To request a printed copy of the ITTR or to be added to the mailing list, contact the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington DC 20436. Requests may also be faxed to 202-205-2104.