Recent News

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

USTR Schwab’s Statement Regarding Entry into Force of U.S.-Oman FTA

On December 29, U.S. Trade Representative Susan C. Schwab issued a statement regarding the entry into force of the Oman Free Trade Agreement (FTA). Schwab noted the President’s proclamation to implement the U.S.-Oman FTA as of January 1, 2009. She stated that the FTA “… advances the President’s vision for economic integration and development in the Middle East and holds important promise for the people of both Oman and the United States,” and that it “ builds on (FTAs) concluded with Israel, Jordan, Morocco and Bahrain, Trade and Investment Framework Agreements with 10 countries in the region and the 2005 World Trade Organization accessions of Saudi Arabia. Implementing legislation for the U.S.-Oman FTA passed the U.S. Senate in June 2006 and the House of Representatives in July 2006. It was signed by the President in September 2006.

View USTR press release

USTR Releases 2008 Report to Congress on China’s WTO Compliance

On December 23, USTR presented to Congress the statutorily-mandated annual report on China’s compliance with its WTO obligations. According to the Executive Summary of the report, “many developments in the U.S.‐China trade relationship demonstrated that the Administration’s policy of serious dialogue and resolute enforcement is delivering real results.” China’s implementation of its WTO commitments has led to increases in U.S. exports to China, while deepening China’s integration into the international trading system and facilitating and strengthening the rule of law and the economic reforms that China began thirty years ago. At the same time, the Executive Summary noted that “despite the progress achieved in 2008, several specific issues continued to cause particular concern for the United States and U.S. industry, given China’s WTO obligations. These outstanding issues arose in a range of areas, including principally intellectual property rights, industrial policies, trading rights and distribution services, agriculture and services,” as noted in the report.

View USTR press release

Schwab Statement Regarding Entry into Force of CAFTA-DR for Costa Rica

View the text of the December 23 statement by U.S. Trade Representative Susan C. Schwab regarding the entry into force of the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) for Costa Rica. Noting President Bush’s issuance of a proclamation to implement the CAFTA-DR for Costa Rica as of January 1, 2009, Schwab stated, “I am very pleased to be able to celebrate the entry into force of this important multi-country agreement.” She called Costa Rica’s efforts to adopt legislation and regulations to implement its commitments under the CAFTA-DR “…an important milestone in our relationship with Costa Rica, building on our strong economic and political partnership. With the addition of Costa Rica, this important regional free trade agreement will be in effect – as of January 1, 2009 – for all of the countries that signed the agreement.”

USTR Statement on Anti-Counterfeiting Trade Agreement Discussions

View the text of a statement by USTR spokesperson Scott Elmore regarding the December 15-18 discussions on the proposed Anti-Counterfeiting Trade Agreement (ACTA). The participants “reaffirmed their commitments to negotiate an agreement to combat global infringements of IPR, particularly in the context of counterfeiting and piracy, by increasing international cooperation, strengthening the framework of practices that contribute to effective enforcement, and strengthening relevant IPR enforcement measures themselves.” This meeting was the fourth in a series of negotiations to discuss proposals concerning different aspects of the proposed agreement. The participants discussed the schedule of future negotiations and meeting again in Morocco in March 2009, and “confirmed their intention to conclude the agreement as soon as possible.”

United States Promotes Development Through Aid for Trade

On December 16, U.S. Trade Representative Susan C. Schwab announced that the United States increased its annual spending on Aid for Trade programs, also known as trade capacity building, to $2.3 billion in the 2008 fiscal year, an increase of 60 percent from the 2007 fiscal year. Since 2000, the United States has provided more than $9.7 billion in total trade-related assistance to our less developed trading partners. The United States is the largest single-country provider of trade-related assistance, including development of trade-related physical infrastructure. This assistance is aimed at helping developing countries take advantage of the opportunities of the global trading system, and more broadly, harness trade as an engine of growth and development. Commenting on the U.S. contribution to trade capacity building, Schwab characterized it as “… another example of the ongoing U.S. commitment to promoting development and achieving a successful conclusion to the Doha Round negotiations.”

View USTR press release

WTO Appellate Body Confirms Finding Against China’s Taxation of U.S. Auto Parts

On December 15, U.S. Trade Representative Susan C. Schwab announced that, in the first WTO dispute to be litigated against China, the WTO Appellate Body confirmed that China’s treatment of U.S. and other imported auto parts is inconsistent with China’s WTO obligations. Schwab commented that the decision “…confirmed that China’s discriminatory taxation of U.S. auto parts is fundamentally at odds with core WTO principles,” and that she “expect(s) China to comply promptly with its WTO obligations by removing an unlawful and unfair trade barrier that is harming U.S. workers and manufacturers.” She added, “Formal dispute resolution ultimately proved necessary in this case because of China’s failure to respond to earlier efforts to resolve this problem through dialogue.” The Appellate Body also confirmed similar findings in favor of Canada and the European Union, which had brought companion disputes against the Chinese measures.

View WTO Appellate Body report on auto parts dispute

Statement from Ambassador Susan C. Schwab on WTO Ministerial

View the text of U.S. Trade Representative Susan C. Schwab’s December 12 statement regarding a decision by WTO Director General Lamy not to call a ministerial at this time. She noted, “There were several significant unresolved issues on the table that needed to be addressed for a deal on modalities to come together.” While Schwab is “disappointed” with Lamy’s decision, she added, “The US remains committed to working with the WTO and our trading partners to reach a successful Doha outcome, one that fulfills the promise of this round.”

Ambassador Schwab Welcomes Taiwan’s Membership in WTO Agreement on Government Procurement

On December 10, U.S. Trade Representative Susan C. Schwab welcomed Taiwan’s accession to the WTO Agreement on Government Procurement (GPA), which is “…a culmination of many years of hard work.” Under the GPA, Taiwan will open its government procurement market to suppliers from the United States and other GPA Parties, and must conduct its procurements in a fair, transparent and predictable manner, in accordance the principles and procedures of the GPA. U.S. suppliers will be assured access to procurement opportunities in Taiwan worth approximately $20 billion annually. Firms from Taiwan will be eligible to compete for U.S. and State government procurement that is covered by the GPA. According to the WTO press release on Taiwan’s accession, Albania, China, Georgia, Jordan, the Kyrgyz Republic, Moldova, Oman and Panama are in the process of negotiating their accession to the GPA.

Gutierrez Applauds Nomination of Gov. Bill Richardson, Highlights Foreign Policy Experience as Critical for Commercial Engagement

On December 3, Secretary of Commerce Carlos M. Gutierrez issued a statement on President-Elect Barack Obama’s nomination of Gov. Bill Richardson to be the next Secretary of Commerce: “The Department of Commerce is a vast agency with a diverse portfolio that ranges from promoting commerce and economic growth, to exercising stewardship over our oceans and waterways. “Gov. Richardson has strong international experience, which will serve him well at the Department of Commerce. In our global marketplace, America must be actively engaged, seeking to strengthen and grow our commercial and trading relationships.”

USTR Statement on Taiwan’s Accession to WTO Agreement on Government Procurement

In a December 1 statement, USTR welcomed the completion of negotiations on Taiwan’s accession to the WTO Agreement on Government Procurement (GPA). On November 28, Taiwan submitted its final offer of the procurement that it will cover under the GPA, which reflects the conclusion of long and intense negotiations. It is expected that the WTO Committee on Government Procurement will give formal approval to Taiwan's accession to the GPA at its next meeting, scheduled for December 9, in Geneva. Taiwan will become the 41st WTO Member to join the plurilateral GPA, which requires its signatories to give national treatment to the goods, services and suppliers of the other signatories. It also requires procurements to be conducted in a fair, transparent and predictable manner in accordance with specified principles and procedures.

Gutierrez Highlights Importance of Auto Industry, Underlines Need for Path to Viability

In a December 1 interview on CNN’s American Morning, Secretary of Commerce Carlos M. Gutierrez reiterated the Administration’s belief in the importance of America’s auto industry, and the need for the automakers to demonstrate a path toward financial viability. During the week of November 24, Secretary Gutierrez and Energy Secretary Bodman submitted letters to Chairmen Dodd and Frank, outlining specific benchmarks to determine financial viability.

View transcript of Secretary Gutierrez’s interview

View letters to Chairmen Dodd and Frank

U.S. Wins WTO Dispute Against EU’s Discriminatory Bananas Preference Program

On November 26, U.S. Trade Representative Susan C. Schwab announced that the WTO Appellate Body has found against the EU in the compliance proceeding brought by the United States against the EU’s bananas import regime. The Appellate Body also found against the EU in the parallel proceeding brought by Ecuador. “It is time for the EU to do the right thing and implement a tariff-only regime for bananas that meets the interests of all parties involved,” said Schwab. The United States brought this proceeding in June 2007 to challenge the EU’s import regime for bananas, which included a discriminatory tariff rate quota that allowed duty-free imports of bananas from only some countries. On May 19, 2008, a WTO dispute settlement panel found in favor of the United States. The EC appealed. In its report, the Appellate Body upheld all of the Panel’s findings. The Appellate Body rejected all of the EU’s procedural claims alleging the United States was barred from bringing this proceeding and agreed with the Panel that the EU’s duty-free tariff rate quota reserved only for some countries was inconsistent with Article XIII of the General Agreement on Tariffs and Trade 1994.

View USTR press release

USITC Report on Possible Modifications to U.S.-Chile FTA Rules of Origin

According to a report released by the U.S. International Trade Commission (USITC), Probable Economic Effect of Certain Modifications to the United States-Chile Free Trade Agreement Rules of Origin, changes to the rules of origin for 24 product groups under the U.S.-Chile Free Trade Agreement (UCFTA) would have little or no economic effect on U.S. production and trade. As requested by USTR, the USITC provided advice on the probable economic effect of the proposed UCFTA rules of origin modifications on U.S. trade and on domestic producers of the affected articles. The investigation covers a wide variety of articles; details on the articles covered by the investigation can be found at http://www.usitc.gov/ind_econ_ana/research_ana/chilefta.htm.

View USITC press release

Secretary Gutierrez Speaks to American Entrepreneurs About Administration’s Trade Accomplishments

Commerce Secretary Carlos M. Gutierrez spoke about the importance of trade--and its role in ensuring our nation’s future prosperity--at a November 18 Small Business Administration (SBA) trade symposium. “Exports were $1 trillion in 2001. At present rates, America’s exports will be approaching $2 trillion this year… and exports account for essentially all the growth in our economy so far this year,” Gutierrez said. An important step that will give our economy the stimulus it urgently needs would be passing the three pending free trade agreements before Congress, especially the Colombia FTA, the Secretary stated.

View transcript of Secretary’s remarks

View Commerce fact sheet: “Expanding International Market Opportunities for Americans”

Creating Environment for Innovation Has Been Key to Administration’s Competitiveness Agenda

In his remarks to the Council on Competitiveness on November 12, Secretary of Commerce Carlos M. Gutierrez said, “The way that the President thinks about it is that the job of the public sector is to create an environment so that innovators can do what they do best.” Gutierrez highlighted advances over the past eight years in basic research funding for new technologies, universal broadband access, the digital television transition which frees up spectrum for new products and greater communications interoperability for first responders, and opening international markets for U.S. goods and services. Noting that exports make up 12.5 percent of the U.S. economy, higher than ever in history, the Secretary stated, “This is a time to push on trade; it is a time to have more FTAs… We have 14 and we are standing still. So the rest of the world is gaining access to countries and we are not.”

View transcript of Secretary’s remarks

China to End Restrictions on Suppliers of Financial Information Services Challenged by United States in WTO Dispute
On November 13, U.S. Trade Representative Susan C. Schwab announced that China has agreed to eliminate discriminatory restrictions on how U.S. and other foreign suppliers of financial information services do business in China, which the United States had challenged in a WTO dispute brought earlier this year.   “We had attempted to resolve this issue with China through dialogue, but when that did not succeed, we took swift action at the WTO,” Schwab explained.  “We are pleased that the WTO dispute settlement mechanism has worked as intended, enabling the parties to reach a satisfactory resolution.”  The United States and China signed a memorandum of understanding (MOU) that is designed to resolve a WTO case initiated by the United States and the European Communities (EC) in March of this year.  Canada later initiated its own case in June.  The EC and Canada also signed MOUs with China. China’s commitments under the MOU address all the issues under the General Agreement on Trade in Services (GATS) and China’s WTO Accession Protocol that the United States had raised at the WTO.   View USTR press release

USITC Report on Possible Modification of U.S.-Australia FTA Rules of Origin

The U.S. International Trade Commission (USITC) has released a public version of its confidential report on the probable effect of proposed modifications of the U.S.-Australia Free Trade Agreement (USAFTA) rules of origin for certain yarns. The report, Viscose Rayon Staple Fiber: Probable Effect of Modification of U.S.-Australia Free Trade Agreement Rules of Origin, was requested by U.S. Trade Representative Susan C. Schwab. In her letter, Schwab noted that U.S. negotiators have reached agreement in principle with their Australian counterparts to modify the USAFTA rules of origin for certain yarns because it has been determined that U.S. and Australian producers are not able to produce viscose rayon staple fiber in commercial quantities in a timely manner. The yarns affected could include blends of viscose rayon staple fibers with synthetic staple fibers, such as polyester, and with other artificial staple fibers, such as acetate.

View USITC press release

EU and US Discuss Multilateral, Bilateral Trade Ties Ahead of Washington Summit

With trade flows across the Atlantic worth around $2.15 billion (€1.7 billion) every day, U.S. Trade Representative Susan Schwab and EU Trade Commissioner Catherine Ashton met in Brussels on November 11 to renew their commitment to the early conclusion of the world trade talks and discuss a number of bilateral trade issues, including beef hormones, poultry, and REACH. Following the meeting, USTR Schwab said, "At this critical time it is all the more important that we not only avoid retrenchment in market opening, but move ahead with an ambitious and balanced Doha Round that creates new trade flows and generates economic opportunities worldwide." Commissioner Ashton said, "With leadership and determination, a Doha deal is within our grasp as the details of a final agreement could be agreed within weeks.”

View USTR press release

“Commerce Helps Freedom and Freedom Helps Commerce,” Gutierrez Says of Administration’s Accomplishments in Spreading Freedom and Democracy

Secretary of Commerce Carlos M. Gutierrez spoke at the Woodrow Wilson International Center for Scholars about the Bush Administration’s achievements in spreading freedom and democracy through commerce on November 6. From Iraq to Afghanistan, to Georgia and throughout Latin America, where entrepreneurs, free enterprise and innovators flourish, so does creativity, prosperity and increasingly freedom. “Free trade agreements work. They work for both sides…[and] probably the single biggest example that I can think of for commerce to make a difference is for Congress to approve the free trade agreement with Colombia,” Secretary Gutierrez said.

View transcript of Secretary’s speech

View video of Secretary’s speech

USTR Seeks Public Comments on Possible Changes to Product List in EU – Beef Hormones Dispute
U.S. Trade Representative Susan C. Schwab announced on October 31 that USTR is seeking public comment on the possible modification of the list of European products subject to increased tariffs in connection with WTO dispute settlement rulings in the EU – Beef Hormones dispute.  Any such modification could involve the products subject to increased duties, the level of increased duties, or the EU member States whose products are subject to the duties.  USTR is particularly interested in comments addressed to the effects on U.S. small- or medium-size businesses or on consumers of imposing higher duties on particular products.     View USTR press release

WTO Appellate Body Finds in Favor of U.S. Challenge of Indian Duties on Wine, Spirits and Other Products

On October 30, U.S. Trade Representative Susan C. Schwab announced that the WTO Appellate Body has found in favor of the United States in its challenge against India’s additional and extra-additional duties on wine, spirits and other agricultural and manufactured products. India imposed these duties on U.S. imports in addition to and on top of its basic customs duty, resulting in combined duties on imports of alcoholic beverages (beer, wine and spirits) of up to 550 percent. India argued that the duties were permitted because they simply offset certain internal taxes (such as value-added taxes). The Appellate Body reversed the panel, which had found that any import charge offsetting an internal tax need only “serve the same function” as the internal tax and need not be equivalent in amount to that internal tax. In reversing the panel, the Appellate Body agreed with the United States that any import charges aimed at offsetting internal taxes cannot result in a higher amount being charged to imports than to like domestic products.

View USTR press release

Gutierrez Releases Report on Impact of Litigation Environment on Attracting Foreign Investment

On October 29, Commerce Secretary Carlos M. Gutierrez released a report on the U.S. litigation environment and trends in foreign direct investment (FDI) flows into America during the U.S. Chamber of Commerce’s 9th Annual Legal Reform Summit. “In the wake of economic challenges, it is important that America remains open and does not retreat into economic isolationism,” Gutierrez said. “Open markets and free trade make our country the number one destination for global capital, which drives innovation, exports and jobs here at home.” The report notes that high litigation costs impact America’s ability to compete and recommends sustained efforts to bring these costs in line with those of other nations. It also highlights the pressing need for additional economic research on the impact of a litigious society on a country’s ability to attract FDI.

View Commerce press release on report

View text of Secretary Gutierrez’s remarks

Commerce Deputy Secretary Sullivan Kicks Off U.S.-Georgia Business Summit

On October 27, Deputy Secretary of Commerce John J. Sullivan opened the first U.S.-Georgia Business Summit before more than 180 participants. Deputy Secretary Sullivan reaffirmed America’s commitment to support Georgia’s democracy, territorial integrity and security, stating, “We stand by Georgia.” This commitment is reflected in America’s actions, including a multi-year $1 billion commitment of economic assistance announced by President Bush in September. Among the objectives of the trip is to encourage bilateral trade ties between Georgia and the United States. While trade with Georgia was nearly $600 million last year, Sullivan said, “There is tremendous potential for growth in our bilateral trading relationship.”

View text of Sullivan’s remarks

USTR Releases Korea – United States Free Trade Agreement Fact Sheets

View a series of fact sheets released by USTR regarding the Korea-United States Free Trade Agreement (KORUS FTA).

The KORUS FTA and the States

The Case for the KORUS Free Trade Agreement

KORUS FTA: Opportunities for Automotive Exports

KORUS FTA: New Opportunities for Financial Services

KORUS FTA: New Opportunities for Agriculture

KORUS FTA: New Opportunities for U.S. Manufacturers

Secretary Gutierrez Announces Launch of EconomicRecovery.gov Interagency Web Site

Secretary of Commerce Carlos M. Gutierrez took questions from the public concerning the current U.S. economy and announced a new interagency Web site led by the Commerce Department in an Interactive online forum, “Ask the White House,” on October 24. The new Web site, EconomicRecovery.gov, is a resource for the latest information from government agencies on America’s economic recovery for people to keep their homes, find jobs and protect their savings.

View Ask the White House transcript

Partial Re-Allocation of FY 2008 Tariff Rate Quota for Refined Sugar

On October 27, USTR announced a re-allocation of a portion of the FY 2008 tariff-rate quota (TRQ) for refined sugar. TRQs allow countries to export specified quantities of a product at a relatively low tariff, but subject all imports of the product above those quantities to a higher tariff. USTR is therefore re-allocating the 68,278 MTRV portion to the global refined sugar TRQ allocation, which may be supplied by any country on a first-come, first-served basis, subject to any other provision of law. The re-allocation will take effect upon publication of a Federal Register notice by the USTR.

View USTR press release

USTR Announces Staff Promotions, Reorganization

View the text of an October 24 USTR press release regarding staff promotions and some organizational changes.

Commerce Secretary Gutierrez Praises Panama’s Role in New Pathways to Prosperity in the Americas Initiative

In remarks to the U.S.-Panama Business Council on October 23, U.S. Commerce Secretary Carlos M. Gutierrez noted that Panama is an important friend, ally and trading partner. “We are very pleased that Panama has agreed to host the first Ministerial in December,” Gutierrez said. In his remarks, he discussed the potential for increased U.S.-Panama trade and investment, citing Panama’s high growth rate and the pending U.S.-Panama free trade agreement. The Secretary noted that the United States is Panama’s number one export market, with 36 percent of its total exports coming into the United States. In 2007, U.S.-Panama bilateral trade totaled $4.1 billion, up from nearly $3.1 billion in 2006.

View Commerce press release

Commerce Secretary Gutierrez Applauds New Opportunities for U.S.–India Clean Energy Partnerships

In his remarks to the U.S.-India Business Council “Green India” Summit on October 15, Secretary of Commerce Carlos M. Gutierrez said that India has the potential to be one of the world’s largest clean energy markets, noting that clean energy technologies have moved to the forefront of India’s energy infrastructure and investment opportunities. U.S. companies produce world-class clean energy technologies, Gutierrez said, and the United States is committed to being India’s partner in providing clean, sustainable energy. Noting that India will have a reliable fuel supply for its civilian reactors after President Bush signed the landmark U.S.-India nuclear cooperation bill, the Secretary stated, “The U.S. will gain access to a growing market for civilian nuclear technologies.”

View text of Secretary Gutierrez’s remarks

WTO’s Appellate Body Vindicates U.S. Imposition of Sanctions After EU Claimed Compliance in Hormones Dispute

On October 16, U.S. Trade Representative Susan C. Schwab announced that the WTO Appellate Body has concluded that the United States did not violate its WTO obligations by maintaining additional duties on certain EU products after the EU claimed it had come into compliance by amending its ban on beef from animals treated with growth-promoting hormones. Schwab commented, “The Appellate Body’s report confirms that WTO Members that are subject to additional duties for failing to bring themselves into compliance with the WTO’s rulings and recommendations must do more than simply claim compliance in order to obtain relief from such duties.” The Appellate Body also concluded that because the Panel made certain legal errors in its analysis of the scientific basis for the EU’s amended ban, the question of whether the EU’s amended ban is WTO-consistent remains open. The dispute over the EU ban on beef from animals administered certain growth promoting hormones dates back to 1996 and is one of the longest-standing disputes in the history of the WTO.

View USTR press release