ASEAN

In August, the United States signed a Trade and Investment Framework Arrangement (TIFA) with the ten ASEAN economic ministers.  This TIFA establishes the architecture to facilitate more vigorous U.S. economic engagement in the ASEAN region and includes a work plan intended to promote ASEAN integration and improve the business climate.  U.S. and ASEAN ministers agreed on an initial TIFA work program that includes:  support for the development of an ASEAN Single Window to facilitate customs clearance; a framework agreement on sanitary and phytosanitary standards to promote trade in tropical fruits; and support for the development of harmonized standards for pharmaceutical registration and approval to speed the introduction of innovative medicines to markets and patients in ASEAN. 

Malaysia

In March, the United States launched FTA negotiations with Malaysia.  The launch followed intensification of discussions under the bilateral TIFA, which provided the two countries a forum for discussing outstanding trade issues and to consider issues that would be covered by an FTA.  We expect the FTA to be mutually beneficial and to strengthen our already significant trade and investment relationship.  Malaysia is the tenth largest trading partner of the United States and the United States is Malaysia’s largest export market and top foreign investor.  The two sides concluded three rounds of negotiations this year, making solid progress on the range of issues under discussion.  While significant work remains, we are seeking to conclude the Agreement in early 2007.

Vietnam

The United States continued to deepen its bilateral relationship with Vietnam, including supporting Vietnam’s WTO accession.  In May, the United States and Vietnam signed an agreement on bilateral market access which formed part of Vietnam's final WTO commitments. Through intensive work both bilaterally and multilaterally throughout 2006, the United States assisted Vietnam with the completion in October of its WTO Working Party negotiations.  On November 27, Vietnam’s National Assembly ratified the country’s protocol of accession, committing Vietnam to implement the terms negotiated by the United States and other WTO members, which will increase market access for U.S. goods and services into Vietnam and establish greater transparency in regulatory trade practices, enhance economic freedoms and establish a more level playing field between Vietnamese and foreign companies. 

Indonesia

The United States further deepened its relationship with Indonesia through the TIFA, under which the two sides explored proposals for negotiating agreements that would serve as building blocks toward an FTA.  In September, the two countries signed an agreement to prevent illegal transshipments of textiles and apparel.  This agreement will combat illegal transshipments of textiles and apparel and facilitate trade in this sector by helping both governments better distinguish between legitimate transactions and shipments that circumvent trade rules and procedures.  In November, the United States and Indonesia signed a landmark agreement on combating illegal logging and associated trade, the first of its kind for both countries.  The agreement is designed to promote forest conservation by combating illegal logging and associated trade, and to help ensure that Indonesia’s legally-produced timber and wood products continue to have access to markets in the United States and elsewhere.  The United States and Indonesia also signed a Customs Cooperation Agreement in November which will assist in the gathering of evidence for criminal and civil cases involving trade fraud, money laundering, violations of export control laws and drug smuggling.  It will also permit information exchange and provide for mutual assistance on a range of other issues, including combating terrorism and trafficking in persons. 

Cambodia

Following Cambodia’s accession to the WTO in 2005, the United States and Cambodia negotiated a TIFA, which was signed in July.  Under the TIFA, the two countries will discuss bilateral trade issues, implementation of Cambodia’s WTO commitments, and consider ways to expand and liberalize trade and investment.  The first meeting under the TIFA was held in Cambodia in February 2007 and included a discussion on Cambodia's customs regime; legal framework for protection of IPR; investment climate issues; and labor and worker rights.