Blog - June 2009

Last week, Ambassador Kirk participated in the Organisation for Economic Co-operation and Development (OECD) Ministerial Council Meeting in Paris, France. While there, he held bilateral meetings with a number of key trade ministers, including those from Australia, Brazil, Japan, Russia, and South Africa.  He discussed bilateral trade issues with those nations, as well as efforts to reach a successful conclusion in the Doha round of world trade talks.

On the last day of the ministerial, Ambassador Kirk was a part of the OECD Session "Keeping Markets Open for Trade and Investment." At the session he re-iterated his commitment to achieving an ambitious and balanced Doha outcome.

Ambassador Kirk also held a press conference at the conclusion of the Ministerial Council Meeting, stating that he is "working to ensure that trade serves as a pillar of America's economic recovery - one that sustains and creates the better-paying jobs that American workers want and need in these tough times."

See a slideshow of his trip below.

Today in Paris, Ambassador Kirk started the day by holding a bilateral meeting with the Japanese Minister of Economy, Trade and Industry Toshihiro Nikai and Japanese Minister of Agriculture, Forestry, and Fisheries Shigeru Ishiba.

Ambasador Kirk and Japanese Minister of Economy, Trade and Industry Toshihiro Nikai

Ambassador Kirk and Japanese Minister of Agriculture, Forestry, and Fisheries Shigeru Ishiba

After the bilateral, Ambassador Kirk participated in the OECD Session "Keeping Markets Open for Trade and Investment." He was joined by Deputy U.S. Trade Representative Peter Allgeier and Deputy Secretary of State for Management and Resources.

Ambasador Kirk and Deputy Secretary of State for Management and Resources after the session

At the session, he gave the following remarks:

It's my pleasure to join you for the first time at the OECD. Now, all of us are here because the OECD has a critical role to play in helping us advance our shared agenda of ensuring a strong and dynamic global trading system that can generate sustained economic growth and overcome the challenges of this current global economic crisis.

For example, the recent OECD Participants agreements to extend terms and make repayment profiles more flexible for nuclear and renewable energy production projects are a major policy success. They create strong financial incentives for investments in energy sources that can help us achieve our broader energy security and CO2 reduction objectives. We should all be proud of this collective accomplishment.

We should also encourage the OECD to enhance its positive and supportive work on intellectual property. Adequate and effective IPR protection and enforcement is critical to innovation and economic development. And this should be reflected fully in ongoing discussions with accession candidates, as well as in OECD projects such as the Innovation Strategy.

But despite some stabilization of financial markets, concerns about the near-term performance of the world economy continue to be pervasive. The World Bank just released growth estimates for the world economy for this year, forecasting a 2.9 percent decline in global output and a 4.2 percent decline in the output OECD countries. Most developing, as well as developed, countries are being affected. And while many now foresee some recovery, the timing, strength and extent remain uncertain.

The response to the financial and economic crisis itself has been global. This is not a North-South issue. In the United States, we continue to be engaged in a number of very large scale efforts to stabilize our markets and help restore growth to our economy and, by extension, the world's economy. Other countries are also engaged in similar efforts. But in an open and integrated economy, such steps at the national level, particularly when reinforced by appropriate policy action, are central to restoration of global economic health.

Now, I am keenly aware of the contraction in world trade now occurring. The WTO estimates that global trade will decline by 9 percent this year, the sharpest decline since the Second World War. And though trade may be contracting, however, economic recovery will mean that trade will have to expand. Thus, it is imperative, in this time of economic turmoil, that we work together to keep our markets open. As our WTO Director-General Pascal Lamy has stated, trade can and should be a potent tool to help lift the world out of this economic doldrum.

At the national level, we need to work to keep vigilant about how we respond to this economic crisis. We think the last WTO report on responses to the crisis actually shows the situation better than some predicted. And we thank the WTO for giving us a rules-based system to review procedures and the very visible individual monitoring of countries that is needed.

At the global level, all of us here today, OECD Members and observers, must commit to reaching an ambitious and balanced conclusion to the Doha Development Round and build on the progress already made and find new approaches to make substantial progress toward the conclusion of the Round. Successful conclusion of the Doha Round can be a critical element for reviving trade and breathing new life into the world's economies. And we need to build on our multilateral efforts through direct, bilateral engagement with one another to move to the final phase of negotiations as quickly as possible. What better way is there to assure that trade once again becomes an engine of growth and better economic futures for all than the conclusion of this important multilateral round?

We all know that the economic situation demands a Doha outcome that delivers for all the world new and real market opportunities. The United States is ready to do our part. President Obama and I are fully committed to achieving an ambitious and balanced Doha outcome. And I invite all of you to join us in the upcoming weeks to explore ways to move forward to a successful conclusion.

Ambassador Kirk held a press conference at the end of the ministerial this afternoon. At the press conference he gave the following statement:

"I was pleased this week to make my first visit to the OECD as United States Trade Representative. The office of the United States Trade Representative is working to ensure that trade serves as a pillar of America's economic recovery - one that sustains and creates the better-paying jobs that American workers want and need in these tough times.

"This week at the OECD, my trade counterparts and I have agreed: nations need trade to aid our recoveries. Open markets can help us fight the economic crisis together.

"In this context, few issues have been more important in our discussions than the Doha round of trade talks. A good Doha deal can boost global trade well into the next decade, while providing a significant development result. I have reiterated at senior official-level meetings in Geneva, at the Cairns Group in Bali, and here in Paris that the United States wants a balanced and ambitious Doha agreement as quickly as possible, with meaningful new market access for all.

"To move forward, we must build creatively on the progress made so far, with intensified multilateral work in Geneva and serious bilateral engagement among key partners.

"OECD members and all of the world's nations should work together to keep trade flowing, and to speed global economic recovery."

United States Trade Representative Ron Kirk arrived in Paris this morning for the 2009 Ministerial Council Meeting at the Organisation for Economic Co-operation and Development (OECD).

Today, Ambassador Kirk held bilateral meetings with Australian Minister of Trade Simon Crean, Russian Minister Nabiullina, Brazilian Trade Minister Amorim, and South African Trade Minsiter Rob Davies. He discussed bilateral trade issues with those nations, as well as efforts to reach a successful conclusion in the Doha round of world trade talks.

Ambassador Kirk and Australian Minister of Trade Simon Crean

Ambassador Kirk and Russian Minister Nabiullina

Ambassador Kirk and Brazilian Trade Minister Amorim

Ambassador Kirk and South African Trade Minsiter Rob Davies

Tomorrow, Ambassador Kirk will hold a bilateral meeting with Japanese Agriculture Minister Ishiba. He will also participate in the OECD Session "Keeping Markets Open for Trade and Investment." At the end of the day, he will hold a press conference.

U.S. Trade Representative Ron Kirk announced today that the United States has requested World Trade Organization (WTO) dispute settlement consultations with the People's Republic of China regarding China's export restraints on numerous important raw materials.  China's measures appear to be part of a troubling industrial policy aimed at providing substantial competitive advantages for the Chinese industries using these inputs.  The materials at issue are: bauxite, coke, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus, and zinc.  These are key inputs for numerous downstream products in the steel, aluminum, and chemical sectors across the globe.  China ranks as a top global producer of these materials.  The European Union also requested formal WTO consultations with China on this matter today.

Ambassador Kirk gave the following remarks at the opening of today's press conference:

Now more than ever, trade is essential to keeping America's economy afloat.

97 percent of America's exporters are the small and medium sized enterprises that employ millions upon millions of our citizens.

And jobs dependent on trade are the better-paying jobs Americans want and need - with salaries 13 to 18 percent higher than the national average.

Access to markets around the world helps us retain and create the good-paying jobs Americans need.

And barriers to trade can slow our ability to recover from the economic crisis.

The Obama Administration has been clear with our trading partners: we wish to work together to keep global trade flowing and provide economic opportunities for all.

But we will always, always, expect our trading partners to play by the rules.

Our preferred tools are those of dialogue - discussions to resolve differences quickly.

But when these talks don't work - we reserve the right to take action. We will enforce the rights of American manufacturers, farmers, ranchers, services providers, and workers using the rules-based global trading system.

Today, the Obama administration is insisting on the rights of American business and workers.

We are initiating formal consultations with China in the WTO, because we see a major problem.

The United States believes that China is unfairly restricting exports of raw materials.

These actions are hurting American steel, aluminum and chemical manufacturers, among other industries, that need these materials to make their products. These actions are endangering the jobs of American workers employed in those sectors.

USTR is very concerned that China appears to be restricting the exports of these materials at the expense of U.S. industries that need these materials, and their workers.

This appears to be occurring despite strong WTO rules designed to discipline export restraints.

And we are deeply troubled that this appears to be a conscious policy to create unfair preferences for Chinese industries... by making raw materials cheaper for China's companies to get, and goods more economical for them to produce.

These export restrictions by China skew the playing field against American workers and businesses. They unfairly advantage Chinese producers.

Under WTO rules, such distortion of the playing field on trade is simply not allowed.

It's not okay in specific cases like the one we are raising today. It is certainly not okay as an underpinning of a country's overall industrial policy regime.

Now, more than ever, we must fight against this kind of domestic favoritism.

Earlier this month, I told the US-China Business Council that the United States wishes to work cooperatively with China to advance our economic relationship. This is particularly true with regard to trade.

But I also said, we will not yield on enforcing the right of American businesses and exporters to compete on a level playing field with China.

I said that if we can do it by trade diplomacy, we will. If we have to file at the WTO, we'll file.

And after more than two years of urging to get China to lift these unfair restrictions, with no result, we are filing at the WTO today.

Before everyone writes that tensions are escalating between the U.S. and China, remember: WTO disputes are a normal part of the relationship among mature trading partners.

The U.S. has previously brought 7 cases against China. China has brought 4 against us.

At this stage, in this case, we have simply requested formal consultations with China in a further attempt to find a negotiated solution to the problem. It is our hope that we will not need to proceed to the next stage, of requesting a WTO panel to examine the matter.

We do not take this step lightly. But we are taking it deliberately.

It is a necessary next step.

And it is the fulfillment of a promise.

In his 2009 trade policy agenda, President Obama promised Americans that his administration, including USTR, would stand up for the rights of American workers and businesses in the rules based global trading system.

We believe that on a level playing field, American workers and businesses can compete and win anywhere in the world.
China's policies on these raw materials seem to put a giant thumb on the scale in favor of Chinese producers.

Today's action is proof of our commitment to level the playing field in this area.

It is our hope that this dispute is resolved speedily and to the fair benefit of U.S. industries and workers.

Our steelworkers, our aluminum producers, and workers in countless other industries deserve the chance to compete fairly with China.

This case is designed to ensure that they have this chance.

I will now take your questions.

See the press release and fact sheet for more information on the case.

United States Trade Representative Ron Kirk will hold a major press conference on Tuesday, June 23, 2009 at 9:15 a.m. EST regarding U.S-China trade.This event will be livestreamed on USTR.gov.

Ambassador Kirk's press conference will be immediately followed by a background session with senior USTR officials.

Earlier this afternoon, Assistant U.S. Trade Representative (USTR) for Services and Investment Christine Bliss spoke on a panel for the Congressional Services Caucus. The event focused on the importance of services to the economy and how to expand export markets for U.S. service providers.

Bliss spoke about increasing services trade and investment, and current service priorities in the Doha world trade talks.

"The most important message I can deliver is that Ambassador Kirk and President Obama made it clear that the services sector is recognized as a key aspect of the US economy and continuing to keep it robust and growing is a very, very important economic objective. And one that we can achieve through pursuing the trade agreements that we have whether through free trade agreements bilaterally, or multilaterally through the Doha Developmental Agenda."

When asked what USTR strategies for promoting services in the Doha round are against the interests of other countries that would like to see more focus on manufacturing and agriculture, Bliss explained how services fall into the overall balance of a successful Doha round.

"Ambassador Kirk has made it clear, as he has begun to engage other countries on Doha, that [U.S. market-opening] priorities are not just in manufacturing and agriculture, but in services as well.  He has also begun to talk to other countries about the importance of services - not only to us but also to other economies. ...We see services just as important to the many emerging markets as they are to the United States."

Visit our services and investment page for more information on how services impact trade and the economy.

United States Trade Representative Ron Kirk participated in a roundtable at the U.S.-India Business Council 34th Anniversary "Synergies Summit" on Wednesday, June 17, 2009. Other panelists included Karan Bhatia, former Deputy U.S. Trade Representative, Tarun Das, Chief Mentor of Confederation of Indian Industries.  Ambassador Kirk and the panel discussed the importance of and ways to strengthen U.S.-India bilateral trade relationship.

Read excerpts from Ambassador Kirk's opening remarks below.

"Thank you for the invitation to be a panelist today. And I'd like to take this opportunity  to offer my congratulations on India's election last month.

Over 700 million Indians registered to vote and over 420 million Indians voted.  The results give India's leaders an opportunity to take bold steps and move forward with trade liberalization and economic reforms that will benefit both India and the United States. The 420 million acts of democracy that took place when each of those Indians made their voice heard are as much a cause for celebration as the result.

...I recently had a number of wonderful conversations with India's new Trade Minister Anand Sharma, including at the Cairns Meeting in Bali last week where we had a very productive meeting.  In fact, I look forward to talking again with Minister Sharma shortly after our discussion here today.

At the Cairns Meeting, we talked about how the current economic crisis is affecting businesses in both our countries, our shared commitment to revitalizing the global economy, and our shared goal of opening up new opportunities for trade between India and America."

Visit the India page for more information on U.S.-India trade relations.

Ambassador Kirk met with President Lee Myung-bak of South Korea on June 15. He and President Lee emphasized the importance of the U.S.-Korea economic relationship and recognized that the U.S.-Korea Free Trade Agreement could further strengthen this relationship. Ambassador Kirk reiterated his commitment to work together with his counterpart, Trade Minister Kim, to address key concerns that have been raised and chart a way forward.

See pictures from the meeting below...

Every week, the USTR website will explore a new trade topic, with background information and current trade data. On June 17, U.S. Trade Representative Ron Kirk will participate in a roundtable at the U.S.-India Business council, so this week's trade spotlight is U.S.-India trade relations.

India is an important trade partner for the United States.  India is currently our 17th largest goods trading partner with $44.4 billion in total (two way) trade during 2008, and the U.S. is one of India's top investors.  Services trade in 2007 (latest data available) was a 50/50 share of the total $19 billion in two-way trade.

U.S. Trade Representative Ron Kirk is committed to enhancing the U.S.-India trade relationship by fostering enhanced dialogue on important trade policy  matters including a U.S.-India Bilateral Investment Treaty.

One way that the office of the U.S. Trade Representative (USTR) is working on growing trade and investment links with India is through the Trade Policy Forum (TPF). The TPF was launched in 2005 and is broken down into five main areas:  agriculture, investment, innovation and creativity (intellectual property rights), services, and tariff and non-tariff barriers.  U.S. and Indian focus group chairs regularly meet to discuss and resolve issues related to these areas.

A Private Sector Advisory Group (PSAG) was created in 2007 and is composed of U.S. and Indian trade experts. These experts provide strategic recommendations to the TPF including financial sector reform, energy cooperation, higher education, and globalization & inclusiveness, all with a mind to enhance the bilateral trade relationship.

In 2006-2008, the White House led an Economic Dialogue, which served as the government-to-government forum on bilateral economic issues, was the umbrella mechanism for the Trade Policy Forum and several other bilateral dialogues led by other agencies. The CEO Forum was the private sector arm of the Economic Dialogue and comprised CEOs from the U.S. and India - representing a cross-section of sectors - who exchanged business community views on a number of key economic priorities.  The CEO Forum presented recommendations to the U.S. and Indian governments designed to improve the commercial climate between the two countries.  The U.S. Trade Representative, the Commerce and Treasury Secretaries and the National Economic Council Chairman participated in both discussions as did India's Deputy Chairman of the Planning Commission and Ministers of Finance and Commerce.

For more information on U.S.-India trade facts, please visit the India page.

Ambassador Kirk arrived back in Washington, D.C. today after attending the 33rd Cairns Group Ministerial Meeting in Bali, Indonesia. While in Bali, Ambassador Kirk met with a number of Cairns Group ministers and other attendees to discuss U.S. agricultural trade policies.

He issued the following statement at the conclusion of the Ministerial:

"The 33rd Cairns Group Ministerial Meeting has been, in my view, a very productive three days. In plurilateral and bilateral meetings, I have discussed a number of trade issues important to the Cairns ministers and to the United States. As you can imagine, few issues have been more important in our talks than the Doha round of world trade talks, and the importance that all of us place on meaningful market openings for agriculture as we proceed.

This week in Bali, I have reiterated the U.S. commitment to a successful conclusion to the Doha round.

To the United States, a successful conclusion will mean an ambitious and balanced result with new market openings for all, and significant contributions to global economic recovery and long-term economic growth and development.

While we should not discard the progress made to date in the Doha round, we must consider new ideas to get these talks moving again. It will take some creativity, and quiet and informal work by ministers and by senior officials. Some countries have already begun offering suggestions to adjust the process.

The United States will continue to work with Cairns Group members and with all of our partners in the World Trade Organization to explore solutions, and ultimately to reach consensus on how to put the Doha negotiations on a path to success."

Today is the launch of the first World Trade Week for the United Kingdom. World Trade week originally started in the U.S. in 1927 and this year the UK is launching its own. The week highlights the importance of global trade in creating jobs and growth.

Deputy U.S. Trade Representative Demetrios Marantis recorded the following statement for UK's World Trade Week.

Watch the video above and read the transcript below.

I'm so pleased to participate in the UK's World Trade Week events on behalf of President Obama and the United States Trade Representative Ron Kirk.   The United States and the United Kingdom share a special history and a strong relationship.   And there is much that we can do together to improve the future of global trade.

It's fitting that I'm speaking to you via technology and transportation systems that have connected us across an ocean.

The worldwide economic downturn is teaching us all many lessons.  And chief among them is just how interconnected the nations of the world are in today's global community.

In times of extraordinary crisis, the temptation for many nations is to turn inward - to close markets in an attempt to protect domestic producers, and respond to the suffering we all see at home.

But both the United States and the United Kingdom know that this response would be as harmful today, as it was in the 1930s.

Job losses have already mounted around the world as trade has declined.

And the hurt we see at home is really showing us that our countries need to increase exports to create and retain jobs.  We need access to each other's economies now more than ever.

The nations of the world have a huge responsibility to work together now - bilaterally, regionally, and multilaterally - to guard against protectionism, and to expand economic opportunities through trade.

There are many opportunities for us to do so together in the World Trade Organization - where 20 standing committees and other bodies meet regularly, engage to review national measures, and solve issues.

Multilateral work in the WTO can be an important tool for responding to the global economic situation.

And one of our best opportunities lies in a successful conclusion to the Doha round of trade talks.  To us, success means a balanced and ambitious agreement with meaningful market access gains for all involved.   A Doha agreement that brings meaningful new trade flows to WTO members can set the tone for a revitalized, invigorated, more robust global trading system over the next 15 years.

This is why President Obama and Ambassador Kirk are both committed to a successful conclusion to the Doha Development Round.  We see it not only as a critical component an overall, worldwide response to the current economic crisis - but also as a critical element to the sustenance of many of our least developed countries.

The world's poorest developing nations have a special place in the Obama trade agenda.  As we've learned, in today's global community, we all rise and fall together.  And there is economic opportunities to be found when we work with developing countries as well.

So from a successful conclusion Doha, to preference policies to technical assistance to building trade capacity, the United States will continue to seek to lift up the world's least developed countries, and grow the world economy in the process.

Trade can be an avenue to encourage investment, create jobs, and even provide alternatives to conflict.  And it is absolutely necessary to fight the global economic crisis.

An aggressive effort to keep trade flowing and open more markets is a tough sell to many people in this economic climate.   But we must win the case for world trade in order to do what's right economically.

Providing transparency and clarity to our citizens can revive our trade agendas.  As Ambassador Kirk has said, the only way to restore confidence in trade efforts is if people can see what we're doing and understand why.

The Office of the United States Trade Representative has committed to addressing Americans' concerns - whether it's through Congress, or by talking to the public directly.

The United Kingdom's World Trade Week is a stellar example of just this kind of outreach.  And USTR is pleased to cooperate with and to support the United Kingdom in this important effort.

There is a great case to be made on trade - that it can work for working families - that it can offer better jobs and better opportunities to our citizens right where they live - and that it can be an important pillar of our economic recoveries at home and around the world.

Working together, the US and the UK can share this message - and more importantly, we can make it real with smart, solid trade initiatives.   Our partnership has been long.  A renewed commitment to sound trade policy can make it even stronger, and more prosperous.  And we can lead in lifting the world to a brighter economic tomorrow.

Yesterday, Ambassador Kirk participated in the U.S.-Russia Dialogue at the St. Petersburg International Economic Forum. Check out the pictures below, courtesy of the International Economic Forum.

Later today, Ambassador Kirk will speak on a panel about strengthening the role of international cooperation and opposing protectionism during the forum.

U.S. Trade Representative Ron Kirk is currently leading the U.S. delegation to St. Petersburg, Russia, for the 13^th Annual International Economic Forum. The forum is held to bring world leaders together to talk about international economic issues.

Ambassador Kirk knows that international trade can help to drive the world's economic recovery. During this economic crisis, countries must not turn inward, but work together to sustain and grow a robust, rules-based global trading system. Ambassador Kirk will speak on a panel about strengthening the role of international cooperation and opposing protectionism during the forum.

Ambassador Kirk will also participate in a dialogue with U.S. and Russian business leaders to discuss deepening U.S.-Russia commercial ties, and meet with senior Russian government officials to discuss our bilateral trade issues, including Russia’s ongoing, unscientific bans on U.S. pork, beef, and poultry products.

Russia is currently our 23rd largest goods trading partner with $36.1 billion in total (two way) goods trade during 2008. Goods exports totaled $9.3 billion; Goods imports totaled $26.8 billion.

This morning, U.S. Trade Representative Ron Kirk delivered a keynote address on "U.S.-China Trade Relations Today and Tomorrow" at the U.S.-China Business Council's 36th Annual Membership meeting.

Ambassador Kirk discussed the importance of the U.S.-China bilateral trade relationship and the cooperative work of constructing a positive and comprehensive relationship between the U.S. and China.

"The health and growth of our bilateral relationship with China will depend, in part, on this job-creating access to China's markets for U.S. goods, services and investment.

We are committed to working closely with China to fully develop that relationship.

There are two primary ways that the U.S. will pursue this.

Our approach to China will involve both direct diplomacy, and strong enforcement of America's rights in the global trading system.

USTR's preferred instruments are those of engagement with China, through dialogue, ongoing efforts to negotiate a bilateral investment treaty, and coordinated efforts with like-minded trading partners."

He also said that USTR would use all available tools to make sure Americans see the benefit of international trade.

"...We are committed to working positively and cooperatively with China.  But we will always put the interests of American businesses and workers at the fore.

We will not yield on enforcing the right of American businesses and exporters to compete on a level playing field with China.

If we can do it by trade diplomacy, we will.  If we have to file at the WTO, we'll file.  And as appropriate, the U.S. will also apply trade remedies fully and fairly as provided for under WTO rules.

The way that USTR approaches disputes with China will be an important element... and an important example... of this new administration's new focus on enforcement."

Read the full remarks, as prepared for delivery.