Press Release from the Office of the U.S. Trade Representative, April 6, 2010Footnote 1
Today, United States Trade Representative Ron Kirk and Secretary of Agriculture Tom Vilsack announced that the United States and Brazil have agreed upon a path toward a negotiated settlement with Brazil over the Cotton dispute.
“I am pleased that our teams have been able to make substantial progress towards the goal of a negotiated settlement which would avoid the imposition of countermeasures against U.S. trade, including U.S. exports and intellectual property rights. We now have a clear path forward, one that is in the best interest of both the United States and Brazil,” said Ambassador Kirk. “As a result of our discussions with Brazil we have avoided imposition of higher tariffs against hundreds of millions of dollars in U.S. goods exports which were scheduled to go into effect this week. This demonstrates how our two countries, working together, can solve problems. I am hopeful that this will enable us to build upon our strong relationship with Brazil, to the benefit of both of our economies.”
“I am so pleased that we were able to agree on a path forward with Brazil that will avoid the imposition of countermeasures on U.S. agricultural products and industrial goods that Brazil had announced would go into effect on Wednesday. Both the United States and Brazil will benefit by working together to resolve our dispute,” said Secretary Vilsack. “I am also pleased that our path forward respects our Farm Bill process and the role of Congress in shaping our commodity programs. I look forward to working with Congress and Brazil to crafting a long-term, mutually-agreeable solution to this dispute that meets the needs of American farmers, workers and consumers.”
Remarks by U.S. Trade Representative Kirk, April 14, 2010Footnote 2
Ambassador Ron Kirk delivered these remarks in Washington, DC at the U.S. Chamber of Commerce/U.S.-ASEAN Business Council breakfast honoring Vietnamese Prime Minister Nguyen Tan Dzung
Ambassador Kirk. It is a pleasure and an honor this morning to welcome the distinguished delegation from Vietnam back to Washington.
We are pleased and enthusiastic about Vietnam's participation, led by Prime Minister Dzung, in President Obama's Nuclear Security Summit.
Vietnam's participation in the Summit serves to highlight Vietnam's vision of its global role and its aspirations for the future.
This includes building alliances to promote global security as well as developing a modern, market-oriented economy that is well integrated into the global system.
This year marks the 15th anniversary of the United States’ reestablishment of diplomatic relations with Vietnam. We've come a long way since 1995.
Then our two countries shared little common ground. Today, we collaborate on a wide range of issues, from trade and investment, to education and health, to security and defense.
Fifteen years ago there was virtually no U.S. investment in Vietnam, and bilateral trade was just $451 million.
With normalization, things began to change. In 2000, we signed the U.S.-Vietnam Bilateral Trade Agreement.
That opened up and normalized our trade relations, and served as a roadmap for increased bilateral cooperation on Vietnam's fundamental economic reforms.
With those reforms, Vietnam showed it was set on building a private sector, creating jobs for its young and growing population, and joining the global trading system.
Ultimately, Vietnam joined the WTO in early 2007, a truly remarkable achievement.
The gains to Vietnam from economic reform and trade liberalization are resoundingly clear on the streets of that country today.
And our bilateral trade and investment has brought tremendous benefits to the United States as well.
U.S. exports to Vietnam have tripled since Vietnam joined the WTO and in 2009, the United States became the largest foreign investor in Vietnam.
Even with this impressive record of success, this relationship has considerable untapped potential.
We have found willing and able partners in Vietnam. And we will continue to undertake a robust agenda to strengthen and deepen the relationship.
Our Trade and Investment Framework Agreement has proven an excellent forum for discussing critical trade and investment issues.
We are negotiating a Bilateral Investment Treaty.
And we are pleased that Vietnam has joined us in negotiations on the TransPacific Partnership agreement.
The TPP is a potential platform for economic integration across the Asia-Pacific region, and an opportunity to negotiate a high-standard, 21st trade agreement that will benefit all members.
Prime Minister Dzung has shown tireless leadership in steering Vietnam's course through some very historic changes both domestically and internationally.
His achievements in economic management and stewardship are well known by those in the room—from Vietnam's accession to the WTO to navigating the global economic downturn.
He draws upon a long and distinguished public sector career that includes such critical public policy positions as Governor of the State Bank of Vietnam, Vice Minister of the Interior, and First Deputy Prime Minister responsible for economic management.
It was in this role that he distinguished himself as a leading proponent of Vietnam's economic reform and modernization.
As Prime Minister, he is still a vocal advocate for improving the business climate.
He has championed an ambitious initiative to reduce red tape and bureaucratic inefficiencies within the Vietnamese government. He has worked to ensure that Vietnam cultivates a vibrant and business friendly economy.
Today, we hope to hear the Prime Minister's views and thoughts on how we all can further expand on and strengthen our economic and commercial ties.
We wish to move together toward the shared goal of build on the successes of the past in order to move together into a new chapter in our relationship.
Please join me in welcoming Prime Minister Dzung.
Press Release from the U.S. Trade and Development Agency, April 16, 2010Footnote 3
With competition heating up in China for the lucrative energy and aviation markets, the U.S. Trade and Development Agency (USTDA) is working to position U.S. businesses to take advantage of this market opportunity by funding training and feasibility studies valued at almost $1.5 million.
In keeping with the promise set by President Obama to double exports in five years, USTDA will help to open China's market to U.S. businesses in the energy and aviation sectors, industries where the United States is particularly competitive and maintains strong market share.
With a goal of reducing emissions from the country's coal-fired power plants, USTDA conferred a grant for a $832,877 feasibility study that will help the China Power Engineering Consulting Group Corporation design an 800 MW integrated gasification combined cycle (IGCC) power station. With support from the China Power Engineering Consulting Group Corporation, the configuration and design parameters for a $2 billion power plant, the first large-scale IGCC power plant in China, will be put in place in cooperation with GE Energy (USA) LLC, which has been contracted to perform the assessment.
“To mitigate the effects of coal-fired power plant emissions, which account for close to 70 percent of all power generated in China, USTDA will support a new U.S. clean coal technology project in China that will also offer a practical solution for meeting global climate change goals,” said USTDA Director Leocadia I. Zak after she signed the grant. “Clean coal in China is important to reducing the environmental impact of coal-fired power generation globally.”
The aviation sector also continues to expand rapidly in China. To support this growth, USTDA expanded its commitment to the successful U.S.-China Aviation Cooperation Program by awarding a grant of $664,065 to the Civil Aviation Administration of China that will help China expand capacity and increase safety. The program will include executive management courses and air traffic management operations training for China's aviation officials.
“USTDA's support for the U.S. aviation sector is critical as the Chinese aviation market continues its rapid expansion, with plans for 97 new airports by 2020 and at least a thousand new aircraft by the end of 2010,” said Director Zak when she signed the grant agreement with the CAAC. “This strategic, public-private partnership that USTDA launched in 2004 has produced significant developmental and U.S. export results, which include over $700 million in U.S. exports to China last year alone and contributions toward a system of regulations and processes that will be able to support a larger aviation sector in China.”
The energy agreement was conferred during a signing ceremony at the InterContinental Hotel in Beijing. USTDA Director Zak and NEA Chief Engineer Wu Guihui signed the grant agreement on behalf of the U.S. and Chinese governments, respectively.
The aviation agreement was conferred during a signing ceremony at the CAAC Headquarters in Beijing. USTDA Director Zak and CAAC Deputy Administrator Xia Xinghua signed the grant agreement on behalf of the U.S. and Chinese governments, respectively. The ceremony was attended by additional representatives from the CAAC, FAA, USTDA and ACP.
Press Release from the Office of the U.S. Trade Representative, April 16, 2010Footnote 4
Today the Office of the United States Trade Representative released a statement regarding the round of the Anti-Counterfeiting Trade Agreement (ACTA) negotiations that concluded Friday, April 16 in Wellington, New Zealand:
“Based on the substantial progress achieved in ACTA negotiations this week, the United States and fellow ACTA participants jointly supported releasing a bracketed text in this particular negotiation. This text reflects our efforts to protect intellectual property and to safeguard consumers and businesses from pirated or potentially dangerous counterfeit products,” said USTR Spokeswoman Nefeterius McPherson.
“While the United States is pleased with the progress made in Wellington this week, more progress is needed, particularly in confirming the focus of key provisions of the agreement on enforcement measures against trademark counterfeiting and copyright piracy. The agreement canbe concluded soon if other participants make it a priority to achieve such progress now. The United States continues to oppose extending provisions on criminal and border enforcement against trademark counterfeiting and copyright piracy to cover patents or other forms of intellectual property.”
“The United States expresses its appreciation to the Government of New Zealand for both its hospitality this week and its role in moving these negotiations closer to conclusion.”
Press Release from the Office of the U.S. Trade Representative, April 16, 2010Footnote 5
Today the Office of the United States Trade Representative released a statement regarding the round of the Anti-Counterfeiting Trade Agreement (ACTA) negotiations that concluded Friday, April 16 in Wellington, New Zealand:
“Based on the substantial progress achieved in ACTA negotiations this week, the United States and fellow ACTA participants jointly supported releasing a bracketed text in this particular negotiation. This text reflects our efforts to protect intellectual property and to safeguard consumers and businesses from pirated or potentially dangerous counterfeit products,” said USTR Spokeswoman Nefeterius McPherson.
“While the United States is pleased with the progress made in Wellington this week, more progress is needed, particularly in confirming the focus of key provisions of the agreement on enforcement measures against trademark counterfeiting and copyright piracy. The agreement can be concluded soon if other participants make it a priority to achieve such progress now. The United States continues to oppose extending provisions on criminal and border enforcement against trademark counterfeiting and copyright piracy to cover patents or other forms of intellectual property.”
“The United States expresses its appreciation to the Government of New Zealand for both its hospitality this week and its role in moving these negotiations closer to conclusion.”
Remarks by Deputy U.S. Trade Representative Sapiro, April 19, 2010Footnote 6
Ambassador Miriam Sapiro delivered these remarks in Washington, DC at the Jordan-U.S. Investment and Trade Forum
Ambassador Sapiro. Thank you, Al, for the kind introduction and for affording me the opportunity to speak about Jordan and the importance of our Free Trade Agreement. It is a pleasure to be here with all of you this morning, particularly His Royal Highness Prince Zeid Al-Hussein, Minister Hadidi, Assistant Secretary of State Fernandez, Mr. Sunnaa and Ms. Talhouni. I am honored to be part of such a distinguished group.
I would also like to thank the Jordanian Embassy in Washington and the Jordan Investment Board for organizing today's event. We are all grateful for your hard work, which continues to strengthen the economic relationship between the United States and Jordan.
This year we are marking the 10th anniversary of the signing of the U.S.-Jordan Free Trade Agreement (FTA). It is a perfect opportunity to reflect upon what we have accomplished together so far.
In 1999—at a time when the United States was working to support Jordan's accession to the WTO—Jordan's exports to the United States totaled $31 million. Bilateral trade that year between our two countries was $307 million.
Ten years later, our trade and investment relationship has grown tremendously. Thanks to the FTA and the Qualifying Industrial Zones program, our two-way trade in 2009 topped $2.1 billion, a nearly 600 percent increase over our 1999 level. That is extraordinary progress.
The benefits to Jordan have been striking. The Jordanian Government has credited its expanding trade with the United States with creating more than 50,000 jobs. In addition, according to data provided by the United Nations Conference on Trade and Development, total foreign direct investment in Jordan increased from $3.1 billion in 2000 to approximately $18 billion in 2008.
Jordan has also become more competitive regionally and internationally as a result of the standards set out in the FTA. In particular, Jordan has taken important steps to expand protections for intellectual property rights; increase regulatory transparency; open its services sector; privatize government-owned entities; and stimulate new areas of the Jordanian economy, including e-commerce.
In short, Jordan's economic growth and commitment to liberalized trade have translated into a secure environment for investors and their capital.
The United States likewise benefits greatly from our relationship. Jordan's strategic location and skilled workforce offer significant potential for American businesses as a gateway to the Middle Eastern and North African market of 400 million people. We look forward to working together to create even more opportunities for both American and Jordanian businesses in the region.
One way we can do that is by promoting U.S. investment in Jordan. The United States has a long history of welcoming foreign investment at home and making investments abroad. The diversity and vitality of our economy—especially in these challenging economic times— depends greatly on our openness to both inward and outward foreign investment. American companies that invest overseas benefit from access to new markets, helping them to grow and prosper. This is especially important for small- and medium-sized enterprises (“SMEs”), the source of almost two-thirds of all new American jobs over the past two decades.
U.S. firms that invest abroad also tend to achieve higher levels of exports than firms that do not. This is because when U.S. firms establish abroad, they create new sources of demand for their goods and services. In fact, U.S. firms with operations overseas, including in Jordan, account for almost half of total U.S. exports.
As these examples illustrate, both the United States and Jordan have much to gain from further expanding an already close relationship. This Forum presents an important opportunity to maintain the positive momentum that we have created inthe last ten years since the FTA was signed. I am confident our discussion today will help us build on that success and achieve this objective.
Thank you.
Excerpts of Remarks by Secretary of Defense Gates, April 20, 2010Footnote 7
Secretary Robert Gates delivered these remarks on the U.S. Export Control System in Washington, DC to the Business Executives for National Security
Introductory Remarks Omitted
Secretary Gates. My thanks as well to the Business Executives for National Security for hosting this event. In areas like accounting, procurement, privatization, excess base structure, BENS has identified problems and proposed solutions that have saved the taxpayers billions of dollars and made our military a more effective fighting force.
As many of you know, for the better part of three years now I've spoken out at various times about the need to adapt and reform America's national security apparatus better to deal with the realities of the post-Cold War world. Some of those necessary shifts include enhancing America's civilian instruments of national power— above all, diplomacy and development— and better integrating them with our military; rebalancing the defense establishment to reflect the lessons learned and capabilities gained from recent conflicts, especially counterinsurgency, stability and reconstruction operations; and most recently, reforming the way we build the capacity of allies and partners to better fight alongside us and secure their own territory.
All of these institutional shifts are to one degree or another aimed at improving the way the United States works with and through other countries to confront shared security challenges. So is the matter I want to discuss today, the need to reform the U.S. government's regulations and procedures for exporting weapons and so-called dual-use equipment and technology.
Earlier this year, the president announced that he would seek to further enhance our national security through substantial changes to our export control regime. He did so with the unanimous support of his entire national security team. This afternoon I'll focus on what I believe are the compelling security arguments for the changes recommended by the president.
I want to state from the outset how critically important it is to have a vigorous, comprehensive export control system that prevents adversaries from getting access to technology or equipment that could be used against us. The problem we face is that the current system, which has not been significantly altered since the end of the Cold War, originated and evolved in a very different era with a very different array of concerns in mind.
As a result, its rules, organizations and processes are not set up to deal effectively with the situations that could do us the most harm in the 21st century: a terrorist group obtaining a critical component for a weapon of mass destruction, or a rogue state seeking advanced missile—ballistic missile parts. Most importantly, the current arrangement fails at the critical task of preventing harmful exports while facilitating useful ones.
The United States is thought to have one of the most stringent export regimes in the world, but stringent is not the same as effective. A number of lapses in recent years—from highly sensitive materials being exported, to vital homeland security capabilities being delayed—have underscored the flaws of the current approach.
Several factors contribute to these kinds of scenarios, which at worst, could lead to the wrong technology falling into the wrong hands. One major culprit is an overly broad definition of what should be subject to export classification and control. The real-world effect is to make it more difficult to focus on those items and technologies that truly need to stay in this country. Frederick the Great's famous maxim that he who defends everything, defends nothing certainly applies to export control.
This problem goes back a long way and was evident well before the collapse of the Soviet Union.
In 1982, when I became deputy director for Intelligence at CIA, my responsibilities included tracking prohibited transfers of U.S. technology. It soon became apparent that the length of the list of controlled technologies outstripped our finite intelligence monitoring capabilities and resources.
It had the effect of undercutting our efforts to control the critical items. We were wasting our time and resources tracking technologies you could buy at Radio Shack.
Today, the government reviews tens of thousands of license applications for export to European Union and NATO countries. In well over 95 percent of these cases, we say yes to the export.
Additionally many parts and components of major pieces of equipment, such as a combat vehicle or aircraft, require their own export licenses. It makes little sense to use the same lengthy process to control the export of every latch, wire and lug nut—for a piece of equipment like the F-16—when we've already approved the export of the entire aircraft.
In short, the time for change is long overdue, if the application of controls on key items and technologies is to have any meaning. We need a system that dispenses with the 95 percent of easy cases and lets us concentrate our resources on the remaining 5 percent.
By doing so, we'll be better able to monitor and enforce controls on technology transfers with real security implications, while helping to speed the provision of equipment to allies and partners who fight alongside us in coalition operations.
Some obstacles to having a strategically sound defense trade relationship can be addressed through bilateral agreements with our closest allies and partners. In 2007, the United States signed defense trade cooperation treaties with both the United Kingdom and Australia, treaties that still await ratification by the Senate. Though—through streamlined export-control arrangements and enhanced security technology measures, these agreements would substantially improve our ability to equip and support U.S., U.K. and Australian forces deploying in combat operations. They contain provisions for allowing the establishment of export-authorized groups of U.S., U.K. and Australian companies. Except for a short list of truly critical equipment and technologies, these trusted companies could largely avoid individual export licenses. And I remain hopeful that the Senate will give advice and consent to both of these treaties prior to the summer recess.
The kinds of common-sense changes contained in the U.K. and Australia treaties are a step in the right direction, at least with these two key allies. But international agreements are still no substitute for the kind of fundamental, systematic reform of export control that this country urgently needs. The fact is, for all of the reasons I described earlier, America's decades-old, bureaucratically labyrinthine system does not serve our 21st-century security needs or our economic interests.
It is clear our current limitations in this area undermine our ability to work with and through partners to confront shared threats and challenges, from terrorism to rogue states to rising powers. Our security interests would be far better served by a more agile, transparent, predictable and efficient regime. Tinkering around—tinkering around the edges of the current system will not do.
For these reasons and more, in August of last year the president directed a broad-based review of the U.S. export control regime. He has called for reforms that control—that focus controls on key technologies and items that pose the greatest national-security threat. These include items and technologies relating to global terrorism, proliferation and delivery of systems of weapons of mass destruction and advanced conventional weapons—in short, a system where higher walls are placed around fewer, more critical items.
Following this directive and informed by a recent National Intelligence Council assessment of the key national-security considerations, I have worked closely with my counterparts at the Departments of State, Commerce, Homeland Security, as well as with the director of National Intelligence and the national security adviser, to develop a blueprint for such a system.
Our plan relies on four key reforms: a single export control list, a single licensing agency, a single enforcement coordination agency and a single information technology system.
First, a single export control list will make it clear to U.S. companies which items require licenses for export and which do not. This single list, combined with a single licensing agency, would allow us to concentrate on controlling those critical technologies and items—the crown jewels, if you will—that are the basis for maintaining our military technology advantage, especially technologies and items that no foreign company or government can duplicate.
Items that have no significant military impact or that use widely available technology could be approved for export quickly. We envision a more dynamic tiered control system, where an item or technology would be cascaded from a higher to a lower level of control as its sensitivity decreases.
Second, a single licensing entity, which will have jurisdiction over both munitions and dual-use items and technologies, will streamline the review process and ensure that export decisions are consistent and made on the real capabilities of the technology. This single entity would also reduce exporters’ current confusion over where and how to submit export license applications, as well as which technologies and items are likely to be approved.
The Administration is currently preparing options for the agency's location, and I anticipate a presidential decision later this spring.
Third, the coordination of our currently dispersed enforcement resources by one agency will do a great deal to strengthen enforcement, particularly abroad, as well as coordination with the intelligence community.
Those who endanger our troops and compromise and our national security will not be able to hide behind jurisdictional uncertainties or game the system. Violators will be subject to thorough investigation, prosecution and punishment severe enough to deter law-breaking.
Fourth, the single unified information technology infrastructure will reduce the redundancies, incompatibilities and waste of taxpayer money that our current system of multiple databases produces. For example, a single online location and database would receive, process and help screen new license applications and end users.
Of course the question of which end users are eligible to receive our technology is a critical national security concern. An essential component of the reform system is the list of entities—terrorist organizations, rogue states and others—that cannot be allowed access to sensitive items. This would deny them technology or force them to acquire it through a more difficult—through more difficult routes.
In order to facilitate compliance and tracking, we propose to consolidate current lists of banned end users into one single, frequently updated list that will be easy for those performing transfers to consult. Entities can be added at any time if there's reasonable cause to believe they are involved in activities contrary to U.S. national security interests.
These fundamental reforms, if enacted together, will improve America's ability to work with and fight along—alongside allies and partners by setting clear, transparent standards, standards that will make it possible to share technology more freely, especially items needed and used by all of us to come—counter common threats.
I'd like to emphasize that the new system will be in full compliance with all of our existing multilateral treaties and obligations. The prospect of more defense trade with the U.S. will incentivize other nations to strengthen their own export regimes.
Given how quickly and how easily goods and information now can flow around the world, export controls are far more effective when they involve multiple partners with shared interests and values.
Press Release from the Office of the U.S. Trade Representative, April 21, 2010Footnote 8
Today, the United States and the Government of Brazil signed a Memorandum of Understanding (MOU) establishing a fund for technical assistance and capacity building related to the cotton sector in Brazil.
Under the MOU, the fund may also be used for activities related to international cooperation in the cotton sector in countries in sub-Saharan Africa, in Mercosur member and associate member members, in Haiti, or any other developing countryas the parties may agree upon. The MOU also includes procedures to ensure transparency and auditing of the expenditures made from the fund.
This MOU is part of the path forward for the Cotton dispute that the United States and Brazil reached earlier this month. With the conclusion of the MOU, Brazil has announced that countermeasures will not be imposed in the Cotton dispute for at least 60 days. The fund is scheduled to continue until the next Farm Bill or a mutually agreed solution to the Cotton dispute is reached. The MOU also provides that the United States also may end the fund if Brazil imposes countermeasures.
This process builds upon our strong relationship with Brazil, and demonstrates how our two countries can work together to address challenges. During the next 60 days, the United States and Brazil will continue their work by negotiating a framework for reaching a mutually agreed solution to resolve the Cotton dispute.
BACKGROUND
In 2005 and again in 2008, the World Trade Organization (WTO) found that certain U.S. agricultural subsidies are inconsistent with WTO commitments: (1) payments to cotton producers under the marketing loan and countercyclical programs; and (2) export credit guarantees under the GSM-102 Program, a USDA program used to provide guarantees for credit extended by private U.S. banks to approved foreign banks for purchases of U.S. agricultural products by foreign buyers.
On August 31, 2009, WTO arbitrators issued arbitration awards in this dispute. These awards provided the level of countermeasures that Brazil could impose against U.S. trade. The annual amount of countermeasures has two parts: 1) a fixed amount of $147.3 million for the cotton payments and 2) an amount for the GSM-102 program that varies based upon program usage. Using the data that we have given Brazil (in accordance with the arbitrators’ award), the current total of authorized countermeasures is more than $800 million.
The arbitrators also provided that Brazil could impose cross-sectoral countermeasures (i.e. countermeasures in sectors outside of trade in goods, specifically intellectual property and services). It may impose cross-sectoral countermeasures to the extent that it applies total countermeasures in excess of a threshold. The threshold varies annually, but is currently approximately $560 million. Therefore, of the approximately $820 million in countermeasures Brazil could impose now, about $260 million of that could be cross-sectoral.
On March 8, 2010 Brazil announced a final list of products that would face higher tariffs beginning on April 7, 2010. Goods on the list include autos, pharmaceuticals, medical equipment, electronics, textiles, wheat, fruit and nuts, and cotton. Brazil had not made a final decision on which U.S. intellectual property rights might be affected by cross-sectoral countermeasures, but it had begun a process to make this determination.
On April 1, Deputy USTR Miriam Sapiro and USDA Undersecretary for Farm and Foreign Agricultural Services Jim Miller met with Ambassador Antonio Patriota, Secretary General of Brazil's Ministry of External Relations to discuss possible resolution of the dispute. As a result of that dialogue, the Government of Brazil agreed not to impose any countermeasures on U.S. trade on April 7. In exchange, the United States agreed to work with Brazil to establish a fund of approximately $147.3 million per year on a pro rata basis to provide technical assistance and capacity building. The MOU signed today implements this commitment.
The United States also agreed to make some near term modifications to the operation of the GSM-102 Export Credit Guarantee Program, and to engage with the Government of Brazil in technical discussions regarding further operation of the program. On April 6, USDA announced that it was cancelling unutilized balances from the GSM-102 program announced fiscal year 2010 to date, and that these balances would be re-announced under new fee rates. New fee rates were announced by USDA April 19 and the unutilized balances were re-announced today.
The United States also agreed to publish a proposed rule by April 16, 2010, to recognize the State of Santa Catarina as free of foot-and-mouth disease, rinderpest, classical swine fever, African swine fever, and swine vesicular disease, based on
World Organization for Animal Health Guidelines. This proposed rule was published on April 16, and includes a 60-day public comment period. The United States also agreed to complete a risk evaluation that is currently underway and to identify appropriate risk mitigation measures to determine whether fresh beef can be imported from certain other regions of Brazil while preventing the introduction of foot-and-mouth disease in the United States.
Following implementation of these initial steps, the United States and the Government of Brazil agreed to continue engagement on these issues, with a view to agreeing on a process by June that will allow us to reach a mutually agreed solution to the Cotton dispute.
Press Release from the Office of the U.S. Trade Representative, April 26, 2010Footnote 9
Joint Statement from U.S.-Pakistan Trade and Investment Council Meeting
Senior Representatives of the Governments of the United States and Pakistan met at the Office of the U.S. Trade Representative in Washington today for the fourth meeting of the United States-Pakistan Trade and Investment Council, under the U.S.-Pakistan Trade and Investment Agreement (TIFA) that was signed in 2003. Today's meeting builds on the commitments made during the recent U.S. and Pakistan Strategic Dialogue to develop an open, results-oriented partnership between our two countries. This meeting demonstrates the continuing close cooperation between Pakistan and the United States on economic, trade, and investment issues. It manifests the importance both governments place on strengthening a long-term relationship by focusing on issues of importance to the Pakistani people.
Participants fully recognized that Pakistan's participation in the global community's effort to defeat the forces of extremism had seriously impacted the country's export competitiveness. We reaffirmed our commitment to support Pakistan through market access initiatives. Both sides agreed to work together and with the U.S. Congress to move ROZ legislation forward so that we realize the key priority of creating legitimate and productive jobs in areas vulnerable to the influence of violent extremism. We also agreed to work together to develop new ideas to enhance market access, foster investment, and create jobs in both of our countries. By providing trade-based sustainable development, we will assist in the reconstruction and development of areas affected by the insurgency.
We also discussed progress on labor rights monitoring and enforcement, including Pakistan's efforts to improve and consolidate its labor laws. We discussed ways that the United States and Pakistan can work together to enforce labor rights for Pakistani workers, an important issue for international investors. We reviewed a wide range of trade capacity building programs that the United States and Pakistan are implementing.
The parties also discussed a full range of investment climate issues, including intellectual property rights concerns, and sector-specific investment challenges. We reviewed the status of negotiations for a United States-Pakistan Bilateral Investment Treaty (BIT). The Overseas Private Investment Corporation, and U.S. ExportImport Bank, provided an overview of their programs in Pakistan and discussed areas for possible future cooperation. Both sides recognized the need for increased private sector involvement in the TIFA, the U.S.-Pakistan Strategic Dialogue, and other bilateral initiatives to highlight the challenges that businesses and investors face and develop practical solutions that effectively address these issues.
The two sides agreed to continue this discussion on market access issues at a U.S.-Pakistan Joint Trade Study Group meeting in Islamabad. The TIFA process and Joint Trade Study Group together support our shared objective of building closer ties between the citizens of our two countries. Over the long term, solid economic, trade, and investment policies will create jobs, boost investment, and generate sustainable development.
Today's meeting also occurred on the eve of the South Asian Association for Regional Cooperation (SAARC) Summit. In that regard, we also exchanged views on the importance of improving South Asian regional trade cooperation. The United States agreed to support Pakistan's efforts to expand market access with key developed nations in Europe and Asia, and Pakistan confirmed its intention to conclude a new transit trade agreement with Afghanistan. Pakistan provided an update on the implementation of the South Asia Free Trade Area (SAFTA).
The TIFA process has been a key part of a sustained and multi-faceted high-level engagement between our governments, focused on tackling major economic, trade, and investment challenges. The process is designed to guide and complement the practical work that officials from a wide range of agencies in both our governments carry out daily. Our meeting provided an excellent review of key economic, trade, and investment issues, helped to focus our efforts to achieve priority goals, and allowed us to identify new areas for cooperation. With an overarching goal of providing a better quality of life for our peoples, the United States and Pakistan strengthened our commitment to work together to enhance market access, boost economic development, and increase private sector investment.
Remarks by U.S. Trade Representative Kirk, April 26, 2010Footnote 10
Ambassador Ron Kirk delivered these remarks, titled “Protecting Tomorrow: IP and Green Technology,” in Washington, DC on World Intellectual Property Day
Ambassador Kirk. Thank you Victoria for that introduction. I also want to recognize the other distinguished participants, including Under Secretary Francisco Sanchez, WIPO Deputy Director General James Pooley, and Q. Todd Dickinson of the American Intellectual Property Law Association.
It is a pleasure to be with you today and I welcome the opportunity to discuss the role of intellectual property protection in trade policy. Today we are commemorating the formation of the World Intellectual Property Organization and the importance of IP in promoting creativity and innovation, and that's definitely something worth recognizing
In many ways, creativity and innovation are the engines of the American economy. At USTR, it is our mission to ensure that American workers, businesses, farmers, ranchers, and entrepreneurs are able to sell their goods and services in a global market place that allows Americans to compete on an equal footing.
Supporting American firms, especially small businesses, in reaching out to the global market where 95% of the world's consumers reside is critical for America's economic recovery and sustainable growth into the future.
Experience has shown that businesses that export are more likely to grow faster, hire more, and pay higher wages.
Currently, six million jobs are supported by manufacturing exports alone, and jobs supported by goods exports pay as much as 18 percent above the national average.
Protecting American intellectual property, whether it is trademark protection for a new brand that distinguishes the high quality of an American firm's goods or services from its competitors, copyright protection for the works of creative American authors, performers, producers and publishers, or patent protection for the latest technological innovation, is critical for ensuring that American firms can compete in the global environment.
Countries that fail to respect U.S. intellectual property, either by failing to implement or enforce laws that adequately protect American intellectual property, or creating policies that disadvantage U.S. right holders, put American workers and businesses at a disadvantage.
Let's be clear: IP theft in overseas markets is a job killer, and it's an export killer. USTR will work with a broad range of stakeholders to vigorously pursue changes to the policies of trading partners that put us at such a disadvantage. We will use all the trade policy tools we have at our disposal.
We will work cooperatively with our trading partners, our colleagues in other agencies and the private sector to identify solutions to adequately protect American intellectual property through training or other capacity building as appropriate.
We will communicate our concerns clearly through reports, such as the Special 301 Report coming out at the end of this month, and through bilateral engagement and frank discussions with our counterparts.
We will negotiate agreements that commit our trading partners to protecting American intellectual property, such as the Anti-Counterfeiting Trade Agreement and the Trans-Pacific Partnership.
And, when necessary, we will not hesitate to assert our rights and bring formal disputes against our trading partners through the WTO dispute settlement process.
As we look to the future, we recognize that U.S. innovation must be directed toward solving some of the major global challenges facing us in the 21st century.
The development of green technology, from wind turbines and solar panels, to energy efficient building materials, to biological methods for harnessing carbon neutral energy sources, will be critical for addressing the challenges of global climate change, promoting sustainable economic growth and reducing our dependency of foreign sources of fossil fuel.
In order for the world to address these challenges, we will need to harness the ingenuity and creativity of U.S. researchers, scientists, engineers and manufacturing workers.
U.S. businesses can and will be at the forefront of innovation in green technology, for the benefit not just of American economic growth and job creation, but for the whole world.
American innovation will provide solutions that the whole world will benefit from.
But we must remain vigilant that the investments that American inventors make are not undermined by lax enforcement of intellectual property rights or a lack of understanding about the positive role of IP rights in driving solutions to today's green energy challenges.
IP rights, both here at home and abroad, will be critical for ensuring that not just American inventors, but inventors from around the world have the incentives and legitimate expectations of reward for their innovation to create the technologies and processes that will drive this critical sector and contribute to the global solutions we need.
In that regard, we look forward to working with our colleagues at the Department of Commerce and the Patent and Trademark Office as well as our friends in the World Intellectual Property Organization and our trading partners to ensure that IPR systems around the globe are working for American innovators and for the world.
Press Release from the Office of the U.S. Trade Representative, April 28, 2010Footnote 11
Today United States Trade Representative Ron Kirk welcomed introduction by the Chairmen and Ranking Members of the Senate Finance and House Ways and Means Committees of a bill to expand and extend trade benefits available to Haiti, increasing Haiti's duty-free access to the U.S. market for certain Haitian-made apparel and other articles. Ambassador Kirk noted that the bill would also extend until the year 2020 the slated expiration date of the benefits under the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II). He issued the following statement:
“I commend this bipartisan, bicameral effort to provide much needed economic opportunities to the Haitian people,” said Ambassador Kirk. “One of the most powerful tools we can use to help Haiti recover and thrive after January's devastating earthquake is to extend trade opportunities that lead to job-creating investment there.”
Press Release from the Office of the U.S. Trade Representative, April 30, 2010Footnote 12
Ambassador Miriam Sapiro, Deputy United States Trade Representative, and Ambassador Alfredo Chiaradia, Secretary of Trade and International Economic Relations, met today under the auspices of the U.S.-Argentina Bilateral Council on Trade and Investment. This was the first meeting between the United States and Argentina under this mechanism in seven years. The purpose of the meeting was to advance the two countries’ reciprocal trade and investment interests and to strengthen coordination on multilateral trade liberalization efforts.
“The United States appreciates the opportunity to engage with the Government of Argentina to discuss ways to resolve bilateral trade problems and strengthen our relationship. I was pleased to welcome Ambassador Chiaradia to USTR and look forward to today's meeting delivering tangible results in the days ahead,” said Ambassador Sapiro.
Press Release from the Office of the U.S. Trade Representative, April 30, 2010Footnote 13
The Office of the United States Trade Representative (USTR) today released its annual “Special 301” Report on the adequacy and effectiveness of U.S. trading partners’ protection of intellectual property rights (IPR). The Special 301 Report provides a means for the United States to communicate its concerns about the need to protect and enforce IPR. Fighting IPR theft in overseas markets is critical to the livelihoods of the estimated 18 million Americans who work in intellectual property-intensive industries.
“Intellectual property theft in overseas markets is an export killer for American businesses and a job killer for American workers here at home. USTR's Special 301 report is important because it serves as the foundation for a year-round process used to secure meaningful reforms that bolsters our exports and supports American jobs in IPR-intensive industries,” said Ambassador Ron Kirk. “I am pleased that this year's Special 301 Report will highlight several successes in the fight against intellectual property theft. The Czech Republic, Hungary, and Poland have taken significant steps to clamp down on piracy and counterfeiting and will be removed from the Watch List.”
Today's positive report on these three countries follows recent successes in both Israel and Saudi Arabia, which were the result of consistent engagement using the Special 301 process. The Report also reflects the Administration's resolve to encourage and maintain effective IPR protection and enforcement worldwide.
Again this year, USTR's Special 301 Report highlights the prominence of IPR concerns with respect to China.
“We are seriously concerned about China's implementation of ‘indigenous innovation’ policies that may unfairly disadvantage U.S. IPR holders. Procurement preferences and other measures favoring ‘indigenous innovation’ could severely restrict market access for American technology and products,” said Ambassador Kirk. “Creating an environment that nurtures innovation and entrepreneurship is a worthy goal, but China must maintain a level playing field.”
The Report identifies a wide range of other serious concerns, ranging from the severe problems of piracy and counterfeiting in China, to the challenge of Internet piracy in other countries, to ongoing systemic IPR enforcement shortcomings in many trading partners.
As noted above, key significant developments in this year's Special 301 Report include the following:
Czech Republic—The Czech Republic is being removed from the Special 301 Watch List because of significant progress made over the past two years to control effectively its border markets. Moreover, a new criminal code raising the maximum penalties for IPR related crimes from 2 to 8 years imprisonment and criminalizing the manufacture and storage of counterfeit items came into effect January 1, 2010. The United States will continue to monitor whether the new law results in the imposition of deterrent penalties.
Hungary—Hungary is being removed from the Special 301 Watch List in recognition of the significant improvements on enforcement and other actions taken during the past year. Hungary has taken proactive steps to address the growing threat of Internet piracy, and its customs and police officials have developed their ability to effectively identify infringing products. Through effective and consistent enforcement actions, Hungary has closed its notorious Verseny street market, which was home to an array of illegitimate products. Furthermore, Hungary has taken effective measures to protect IPR, including numerous public awareness-raising campaigns, and training and educational seminars for police, prosecutors, and judges. The United States will continue to monitor Hungary's progress to ensure that IPR protection and enforcement improvements are ongoing.
Poland—Poland is being removed from the Special 301 Watch list in recognition of a significant reduction in the availability of pirated and counterfeit goods at border markets, increased and improved enforcement efforts, and strong cooperation between rights holders and enforcement officials. The government has also taken initial steps to address Internet piracy concerns. The United States will continue to monitor Poland's progress to ensure that IPR protection and enforcement improvements are ongoing.
USTR also announced that it will conduct Out-of-Cycle Reviews for the Philippines and Thailand to monitor progress on specific IPR issues, which will allow us to deepen our IPR dialogue and cooperation with two key trading partners.
BACKGROUND
USTR reviewed 77 trading partners for this year's Special 301 Report, and placed 41 countries on the Priority Watch List, Watch List, or the Section 306 monitoring list.
The Special 301 designations and actions announced in the Special 301 Report are the result of close consultations with affected stakeholders, interested parties, foreign governments, and Congress, as well as discussions between interested federal agencies.
This year USTR enhanced its public engagement activities, which yielded 571 written comments from interested parties, a significant increase from 2009. USTR made the submissions it received available to the public online at www.regulations.gov, docket number USTR-2010-0003. In addition, on March 3, 2010, USTR conducted a public hearing to let interested persons inform the interagency Special 301 Subcommittee of issues relevant to the review. The hearing included testimony from 23 witnesses, ranging from foreign governments to industry representatives to nongovernmental organizations. A transcript of the hearing is available here.
Trading partners on the Priority Watch List do not provide an adequate level of IPR protection or enforcement, or market access for persons relying on intellectual property protection. China, Russia, Algeria, Argentina, Canada, Chile, India, Indonesia, Pakistan, Thailand, and Venezuela are on the Priority Watch List. These countries will be the subject of particularly intense engagement through bilateral discussion during the coming year.
Twenty-nine trading partners are on the lower-level Watch List, meriting bilateral attention to address underlying IPR problems: Belarus, Bolivia, Brazil, Brunei, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, Finland, Greece, Guatemala, Italy, Jamaica, Kuwait, Lebanon, Malaysia, Mexico, Norway, Peru, Philippines, Romania, Spain, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan, and Vietnam.
Paraguay will continue to be subject to Section 306 monitoring under a bilateral Memorandum of Understanding that establishes objectives and actions for addressing IPR concerns in that country.
Our process of broad consultations is designed to ensure that Special 301 decisions are based on a robust understanding of often complex intellectual property issues and to help facilitate sound, well-balanced assessments of developments in particular countries.
USTR necessarily conducts this assessment on a case-by-case basis, based on the particular facts and circumstances that shape IPR protection and enforcement regimes in specific countries. As discussed in the Report, USTR will continue to work closely with the governments of listed countries.
Remarks by U.S. Trade Representative Kirk, May 3, 2010Footnote 14
Ambassador Ron Kirk delivered these remarks in Seattle, WA at the U.S.-ASEAN Economic Ministers Road Show Luncheon
Ambassador Kirk. Good afternoon. I am so pleased to be here with my distinguished fellow ministers from Brunei,
Indonesia, Laos, and Malaysia, as well as the Secretary General of ASEAN. I would like to thank the U.S.-ASEAN Business Council, in partnership with the Trade Development Alliance, The National Bureau of Asian Research, and the National Center for Asia-Pacific Economic Cooperation for planning and hosting this terrific event. And I would like to welcome all of you who are here to be a part of the great and growing relationship between the U.S. and ASEAN.
There could hardly be a more fitting spot for us all to come together. Seattle sits at the intersection of East and West, serving as a gateway for products coming to the United States from all over the world, and as an on-ramp to global trade for American businesses large and small.
In fact, if you look to your right, or to your left, and you have a pretty good chance of finding someone who is paying their bills or building their dreams with a paycheck from an export-related or -supported business—and probably, a business trading in the ASEAN region.
At last count, more than 330,000 Washington residents owe their livelihoods to trade. This state is exporting apples, video games, lumber, and other goods and services to customers all around the world.
Forty percent of all manufacturing workers here in Washington depend on exports for their jobs, and export-supported jobs account for an estimated one out of ten private-sector jobs statewide. But these people are more than just employment statistics. They are supporting their families through the sweat of their labor.
That's noble work. And I want to create more of it. What drives me is this: the idea of a mother or father walking in the door to a family and being able to say, ‘I got a job down at the plant. They were hiring.’ That means fewer anxious days and nights, and more hope for that whole family.
USTR is working to make trade policies that enable more companies to export, so more American mothers and fathers can say, ‘They were hiring. And I got a job.’
It can happen. It is happening right here in Washington State, where local businesses big and small have continued to support good jobs for American workers by exporting their products to the world.
As the United States Trade Representative, it's my job to craft policy solutions that will help more Americans get those export-supported jobs.
The possibilities are huge. 95 percent of the world's consumers live outside America's borders. So at USTR, we are working to tear down trade barriers and open up new job-creating trade opportunities.
Because when American businesses can sell more American products in more places around the world, that creates more jobs for American workers here at home. And this Administration isn't going to leave any jobs on the table.
For the first time in history, President Obama has launched a government-wide National Export Initiative in support of export-related job growth.
In keeping with that initiative, USTR is joining forces with the Departments of Commerce, State, and Agriculture; the Export-Import Bank; and the Small Business Administration to accomplish a single goal: double American exports in the next five years. If we can achieve this, we can support 2 million new jobs.
With millions of Americans looking for employment, we can't work fast enough.
So at USTR, we are moving full speed ahead with a robust enforcement policy, new market-opening negotiations, and ongoing efforts to boost existing trade relationships.
In order to guarantee that an American company from Seattle or anywhere else can compete alongside companies from cities all over the world, the United States is forcefully upholding the rights negotiated in our trade agreements. In the past year, we've used the tools of enforcement to level the playing field and guarantee market access for all kinds of American businesses and workers—from lumber producers to tire companies to industrial manufacturers.
But it's not enough just to defend the market access we already have—we have to seek out and seize market opportunities all over the globe. Because as the President has said: if we don't, other countries will.
So the United States is negotiating a new Trans-Pacific Partnership that will expand U.S. opportunities in the Asia-Pacific under a high-standard, 21st century agreement.
In 2011, the United States will host the Asia-Pacific Economic Cooperation forum, which will give us a unique opportunity to grow jobs and increase our economic engagement.
And we are working to address outstanding issues on pending Free Trade Agreements—including the U.S.-Korea agreement.
Our engagement with the ten countries of ASEAN is a good example of the Administration's trade policy goals at work. With the ASEAN countries, we are promoting exports, supporting small and medium-sized businesses in global trade, and deepening our trade and investment ties with the most dynamic region in the world.
And while Americans who live here in the Pacific Northwest understand the importance of our relationship with Asia better than many who live in the East, even many of you may be surprised to understand the economic importance of the ASEAN region to us.
ASEAN countries together are the United States’ fifth largest trading partner, with over $200 billion in goods and services trade in 2008. ASEAN is also a key export market for U.S. goods, together ranking 4th among total export markets in 2009. In addition, ASEAN presents a significant export market for our farmers and ranchers, with over $6 billion worth of agricultural exports to the region on 2009. With all 10 ASEAN economies expected to experience positive economic growth in 2010 and a population of nearly 600 million people, the dynamic economies of ASEAN offer growing market potential for American businesses both large and small.
And U.S.-ASEAN investment relations are equally strong. I'll bet if you were asked whether ASEAN, China, or India is the leading destination for U.S. foreign direct investment, most of you would choose China and a few would guess India. But ASEAN is far and away the leading destination of U.S. FDI—with three times more than China, and nearly 10 times more than India.
Washington State has had a strong trade relationship with the ASEAN region for a long time. Over the past 10 years, Washington State exports to ASEAN have ranked within the top five annually among all U.S. states. And in 2009, Washington ranked third among all states with over $3.3 billion worth of exports to ASEAN. Leading exports from Washington State to ASEAN include transportation equipment, crop production, processed foods, and computers and electronic equipment. And these exports support many thousands of well-paying jobs in local companies both large and small throughout the state.
The Obama Administration has made it a priority to build this relationship further. We are stepping up our work to strengthen our trade and investment relationship. We have several initiatives under our formal trade dialogue, known as the ASEAN-U.S. Trade and Investment Framework Arrangement or TIFA. For example, we are working on customs and trade facilitation, as well as on the adoption of internationally recognized standards, to improve the free flow of goods throughout the region. This will help U.S. businesses transport their goods more efficiently throughout ASEAN. We are engaging ASEAN leaders on trade finance, facilitating American exports to ASEAN buyers who know and value our products. And this year, we are working toward more cooperative engagement on environmental issues in trade.
In addition to strengthening our trade and investment relationship with ASEAN, we are actively supporting ASEAN's own goal of economic integration. ASEAN has been actively working to create a single economic area by 2015. This area would encompass a single market and production base, characterized by a free flow of goods, services, investment, and skilled labor, as well as a freer flow of capital. These integration efforts will strengthen the competitiveness of ASEAN countries while also enhancing the efficiency of U.S. companies operating in the region.
Today's event is the kickoff of another aspect of U.S.-ASEAN cooperation: America's government-business dialogue with ASEAN. This ‘Ministers' Road Show’ allows ASEAN government and business leaders to tell you in their own words why ASEAN is worth your consideration.
Last November, President Obama met with the ten ASEAN leaders to discuss the importance of our relationship and our commitment to strengthening ties. This relationship will remain a priority for the Obama Administration. An ambitious ASEAN agenda will help our Administration to promote exports and trade, strengthen the global economy, and create and retain more well-paying jobs here, including here in Washington state.
Seven thousand of Washington's 8,000 exporting businesses are small- or medium-sized firms, and these businesses have a special place in the Obama Administration's export plan. Across the country, only one in every one hundred small businesses is an exporter—and most of those that do export sell only one product in one foreign country. So this Administration is taking unprecedented steps to help more small- and medium-sized businesses make the leap to international markets.
We have appointed a new Assistant U.S. Trade Representative for Small Business, Jim Sanford, to target our trade policy efforts to better support small- and medium-sized exporters. And we are meeting with small businesses all across the country to find out how we can best help them to succeed.
All of these steps are making it easier for Americans to do business around the world. But here in Seattle may be the best place for me to reiterate that to the Obama Administration, trade is about more than just doing business.
We talk about trade done right—and trade done right is trade that recognizes that there are people behind every deal. There are real people here in the United States who need jobs or who need to keep the jobs they have. People in other countries deserve a fair price for what they're growing and making and selling—and don't deserve to be the world's dumping ground for shoddy financial, environmental, or labor practices. Children right here in America and around the world deserve to grow up with economic promise and decent jobs available to them, in a clean environment that's better, not worse, because of the goods and services we trade and how we trade them.
That's the kind of trade that our Administration intends to pursue—with our good friends across ASEAN and with every one of our trading partners. And that kind of trade can lift up all our people today, tomorrow, and in the years to come.
Remarks by U.S. Trade Representative Kirk, May 6, 2010Footnote 15
Ambassador Ron Kirk delivered these remarks in Washington, DC at the 7th Annual U.S.-Asia Pacific Council Washington Conference
Introductory Remarks Omitted
Ambassador Kirk. As you all know, the President is quite serious about renewing American leadership in the world and especially in the Asia-Pacific region.
I want to thank Dr. Morrison for his outstanding leadership in helping us plan to host APEC for in 2011. We in the Obama Administration are certainly looking forward to working with your team over the next 18 months.
As we prepare for this work together, I would like to offer some perspectives on:
How economic engagement fits into the President's overall strategy in the Asia-Pacific region.
And how the work we at USTR are doing in the region—successfully hosting APEC and launching a Trans-Pacific Partnership—complements our overall economic policy and puts us on a path toward the President's goal of doubling American exports and growing American jobs.
Finally, I will address specifically the vital role that all of you here can play in our efforts to reach these goals.
Let me begin by congratulating the East-West Center on its 50th anniversary.
At the time of your groundbreaking in 1960, wars in Japan and on the Korean Peninsula were still fresh in the minds of most Americans. War in Southeast Asia had yet to begin in earnest, and President Nixon was years away from going to China.
Today we find a very different picture in the Pacific with respect to U.S. interests. The Cold War is over, the guns of war have gone quiet—and the economic engines have revved up.
Over the past 50 years, the Asia-Pacific region has experienced unparalleled economic growth. China, Malaysia, Vietnam, and the Republic of Korea are among the most dynamic economies in the world. And, the region as a whole now accounts for more than half of global GDP.
So today, while the United States promotes peace and stability in the Asia-Pacific region, we are also seeking to refresh and refine our commitment to economic prosperity for the people of every Pacific nation.
Last year President Obama on his first trip to Asia emphasized that the United States is a Pacific nation, and he has tasked this Administration with an agenda that renews American leadership in the region.
On trade issues, this responsibility falls primarily to me and our team at the Office of the U.S. Trade Representative (USTR).
A few months ago, the President signaled his personal commitment to expanding trade by signing an executive order creating the National Export Initiative (NEI).
The National Export Initiative is an unprecedented whole-of-government approach to meet the President's goal of doubling the amount of U.S. exports over the next five years, which will create two million American jobs.
USTR and our partner agencies across the government are working to implement the National Export Initiative. We are consulting with Congress and stakeholders all the way, and reaching out to the American people to explain what we're doing, and why.
This open and honest approach is consistent with President Obama's goal of providing greater transparency in government.
And we have a good story to tell about trade. A lot of people are skeptical about this—but the fact is that trade leads to more and better jobs for American workers. In the last half of 2009, U.S. exports alone accounted for nearly half of American economic growth. And the data shows clearly that businesses that export grow faster, add jobs quicker, and pay higher wages. So, there is a strong case for boosting exports to create jobs—and we can't afford to leave any jobs on the table.
With respect to the Asia-Pacific region, in particular, more than 60 percent of American exports go to this region.
Experts predict that most growth in consumer sales in the coming decade will be on the Asian side of the Pacific Rim.
And we want to access that growth for American businesses and workers.
Let me turn now to some of the specifics of how we intend to accomplish the bigger picture goals I've just laid out.
First of all, we are working in the Asia-Pacific Economic Cooperation forum or APEC to expand trade opportunities by addressing issues related to U.S. objectives to grow jobs, expand exports, and stimulate the trade-driven growth of small- and medium-sized businesses.
To that end, in 2010, we are working closely with our Japanese colleagues to achieve concrete and significant deliverables for this year that will set the stage for ambitious results in 2011 when the United States hosts APEC.
Specifically, we are focused on:
Advancing key and pressing trade and investment issues, including in the area of standards and technical barriers to trade, that we can use as building blocks for 21st century trade agreements.
Taking steps to make it cheaper, easier, and faster to trade in the region, including by eliminating obstacles to the flow of goods through supply chains and improving the transparency and accessibility of APEC economies’ customs information.
Addressing barriers to trade and investment in environmental goods and services, with a particular focus on non-tariff barriers.
In 2011, the United States will host the APEC forum, and we plan to leverage this unique opportunity to demonstrate America's commitment to playing a stronger and more constructive role in the Asia-Pacific region, including on crucial trade and investment topics.
We also see APEC 2011 as an opportunity to tell our story on trade, and educate people about the benefits of exports to our economic growth and our ability to grow jobs, and the importance of staying engaged with the Asia-Pacific.
We have selected Big Sky, Montana as the location for the 2011 APEC Trade Ministers’ meeting. Bringing the trade ministers to the American West will give us the chance to showcase the diversity of American business, but it will also provide us the format to talk about how important the dynamic Asia-Pacific is to the health of our economy.
We are planning for APEC 2011 to be significant both in symbol and substance.
Our planning comes at a time when the President is eager to seize this unique opportunity to articulate a Trans-Pacific agenda for shared peace and prosperity.
APEC 2011 has the potential to be watershed moment in U.S. economic engagement in the Asia-Pacific, so we are going to be both bold and ambitious when we host.
We are also pursuing a new formal trade agreement with the Trans-Pacific Partnership, or TPP, through which we hope to build what will become the largest, most dynamic trade collaboration of our time.
The President and I intend for the TransPacific Partnership to be our first 21st century trade agreement—one that creates and retains U.S. jobs, integrates U.S. companies in Asia-Pacific production and supply chains, and promotes new technologies and emerging economic sectors.
A 21st century trade agreement should also create more opportunities for small- and medium-sized enterprises, while also giving priority to labor and environmental protections and fostering development.
We launched discussions for the TPP in March and will have the next round in June.
We are also working to deliver economic and strategic trade benefits and opportunities by resolving outstanding issues on the U.S.-Korea Free Trade Agreement, in an effort to move it forward at the appropriate time. When it goes into effect, this agreement will create billions of dollars in new market access for American exporters and strengthen our ties with an important partner in the region.
And whether it is the TPP, APEC 2011, or our efforts with all our Asia-Pacific partners throughout the year, all of you have a vital role to play in our efforts.
The scholars in this audience do an unparalleled job of facilitating research, education, and communication among experts and key stakeholders.
And you business leaders have an unmatched breadth and depth of knowledge and experience.
As we build the agenda for APEC 2011, you will all provide the intellectual capital, working relationships, and practical knowledge we need to succeed.
USTR sees APEC 2011 as a dual opportunity—not only to go after our goals in the Asia-Pacific, but also a chance to educate the American public about the benefits of trade, even as we educate our Pacific trade partners about the needs and concerns of American stakeholders.
In conclusion, I invite you to close your eyes and imagine with me what this meeting might be like fifty years from now.
When the next generation of global leaders gathers here in 2060, what will our economic relationship look like?
Will it be balanced? Will it be sustainable? Will we be bringing home all the benefits of trade that we have promised to our citizens?
The outcomes of APEC 2010 and APEC 2011, and the decisions we make in the Trans-Pacific Partnership, will have a dramatic impact on the answers to those questions.
We are approaching a dynamic moment in this growing relationship, and there is much work to be done.
I look forward to working with you to realize our vision of prosperity across APEC.
Remarks by U.S. Trade Representative Kirk, May 12, 2010Footnote 16
Ambassador Ron Kirk delivered these remarks in Washington, DC at the 10th Anniversary Celebration of AGOA
Introductory Remarks Omitted
Ambassador Kirk. AGOA recognized Africa's enormous economic potential. It acknowledged America's interest in helping African countries grow through trade, and ultimately to rely on trade more than aid to meet the needs of their people.
Ten years later, we can say without doubt that AGOA has made a difference for millions of Africans and truly transformed U.S-African interaction on trade and economic issues.
Behind the billions in dollars in AGOA exports, are tens of thousands of new jobs, and families purchasing goods and services that before AGOA, seemed unobtainable.
With AGOA's new market opportunities for African exports, especially non-traditional and value-added products, African firms are competing internationally, bolstering economic growth and alleviating poverty in one of the poorest regions of the world.
Many African businesses that had never previously considered the U.S. market are getting orders for everything from Ugandan organic cotton T-shirts to Mauritian seafood, and Ethiopian footwear. Scores of these businesses received critical assistance and support from our USAID-funded Trade Hubs.
Since AGOA was passed, we've witnessed new commitment among many African leaders towards strengthening trade relations with the United States, and implementing African solutions to economic and political challenges.
AGOA has also been good for U.S. businesses. Africans have sought more and more U.S. inputs, expertise, and joint-venture partnerships. U.S. total exports to sub-Saharan Africa more than doubled from 2001 to 2009.
These trade figures translate into good jobs and higher incomes for American workers, too.
We've also learned some valuable lessons from the challenges of implementing and utilizing AGOA.
Our experience with AGOA has underscored the importance of helping AGOA beneficiary countries make the most of access to the U.S. market.
We've also learned about the many challenges countries face in seeking to expand and diversify their trade, especially related to infrastructure, transport, regulatory obstacles, and the business environment.
We have sought to help Africans address these issues via a substantial investment in trade capacity building assistance, delivered by U.S. agencies such as USAID, the Millennium Challenge Corporation, the U.S. Department of Agriculture and others.
We have also established four Regional Competitiveness Hubs that work with African governments and businesses to identify and develop AGOA trade opportunities.
In 2009 alone, the United States provided over one billion dollars for trade capacity building activities in sub-Saharan Africa.
The tenth anniversary of AGOA is a good opportunity for us to think about the way forward.
As proud as we are of AGOA's achievements, it has not achieved all that we hoped.
Some AGOA-eligible countries have yet to register any significant exports under AGOA.
And AGOA countries continue to face serious challenges posed by sharpening global competitiveness, especially in the apparel sector.
We are aware of many proposals from AGOA stakeholders to amend, extend, or enhance AGOA. At the same time, Congress has also been thinking broadly about all U.S. preference programs, including GSP.
Over the last several months, USTR has been working with AGOA stakeholders to take stock and to identify major challenges and opportunities for strengthening the U.S.-Africa trade and investment relationship.
We will continue to work with Congress and all of you—the African and U.S. AGOA stakeholders—to develop and implement new ideas.
Trade remains a powerful tool for realizing Africa's economic development priorities.
I want to thank all of you here for your continued efforts. You should all be proud of AGOA's achievements over the last 10 years and its promising future.
Remarks by U.S. Trade Representative Kirk, May 12, 2010Footnote 17
Ambassador Ron Kirk delivered these remarks in Washington, DC to the Council of the Americas
Ambassador Kirk. Thank you. Welcome to my fellow ministers from across the hemisphere. And thank you to Ambassador Negroponte as well as to Secretary Clinton and her gracious team here at the State Department for inviting me to speak. I know that it is something of a tradition for U.S. Trade Representatives to address this august gathering, and I am honored to carry on that tradition today.
It is also somewhat traditional in recent years for the United States’ trading partners across the Americas to question the extent of U.S. engagement in the hemisphere. There are concerns—and if you read the news reports, sometimes reason to believe—that the United States is so preoccupied with Asia or with the European Union that we forget our closest neighbors. But I am proud to stand before you today. Because in the less than 16 months this Administration has been in office, we have been extensively engaged in the Americas—at the highest levels, and with a very broad scope. That engagement is exemplified not only through our ever-closer bilateral relationships, but also in the unprecedented level of cooperation through regional structures such as NAFTA.
As part of these efforts, the Administration is emphasizing opportunities for new partnerships, from stimulating the economy throughout the hemisphere, to alleviating poverty, to utilizing the hemisphere's vast resources to revolutionize energy use. We are also committed to increasing economic opportunities for the next generation, who represent the future of the region.
One of President Obama's first major overseas trips after taking office—and my first trip as USTR—was to attend the April 2009 Summit of the Americas in Trinidad and Tobago. The Summit gave the President an opportunity to engage directly with his counterparts throughout the Hemisphere to listen to their interests and concerns and establish a sound working relationship going forward. The President made it clear early on that he cares deeply about the health and vitality of our relationship with the region.
Since the Summit, I have been in frequent contact with my counterparts in the Americas. Recently, I traveled to Mexico, and I have also had the opportunity to meet the ambassadors and ministers from CARICOM countries to discuss ways to deepen our trade relationship. And as you know, President Calderon will be here next week, as we look to deepen our already-close relationship with Mexico.
Of course, Presidential-level and minister-level meetings don't happen all the time. Our most regular hemispheric engagement takes place through the day-to-day implementation of our free trade agreements.
The United States’ newest FTA partner is Peru. In February 2010 the first meeting of the agreement's oversight body took place on the heels of the FTA's one year anniversary of its entry into force. The meeting discussed, among other things, a plan to effectively monitor the FTA's environmental and labor aspects, as well as how to help small- and medium-sized businesses in both our countries capitalize on the deal.
In particular, we were pleased to work with the Peruvian government to organize open public sessions both in Peru and the United States concerning labor and environmental issues. We are also working with the Peruvian government and interested stakeholders to ensure effective implementation of the forestry annex to our FTA.
These efforts reflect not only a high level of cooperation between our countries, but also the Obama Administration's commitment to inclusive discussions about trade, and to upholding labor and environmental standards that are in U.S. trade agreements.
The parties to the Dominican Republic-Central America free trade agreement represent the third largest U.S. export market in Latin America, behind Mexico and Brazil. The CAFTA-DR agreement entered into force for the United States and El Salvador in 2006, and last year Costa Rica became a Party and the agreement took effect for all seven countries.
We have been working to ensure that the agreement helps foster closer economic relationships between our countries on many levels. To that end, we are working closely with our CAFTA-DR partners on a range of issues, including customs, sanitary and phytosanitary issues and worker rights. Over the coming months, we hope to intensify our dialogue with our partners through organization of the first CAFTA-DR trade ministerial and through bilateral talks.
Last fall, at meetings of the NAFTA Commission and the Chile FTA Committee we agreed to intensify efforts in support of labor and the environment with our FTA partners. We also are looking at innovative ways to enhance economic growth with those partners. For example, the Chilean and U.S. Governments are exchanging information on how our small and medium sized businesses are faring under that FTA, and how we can help them to do better. A similar discussion took place during the recent meeting of the Deputy Trade Ministers from the NAFTA countries.
The message I have sent to my team is clear—work with our trade agreement partners so that we do not let opportunities under the FTAs to lie fallow, but instead cultivate these opportunities so we can jointly enhance the well-being of all of our citizens.
Of course, in addition to implementing existing agreements, USTR is engaging with Colombia and Panama with a view to securing congressional approval of the free trade agreements we have negotiated with these valued economic and political partners of the United States.
In the case of Panama, concerns have been raised with certain aspects of its labor regime and its tax transparency rules. The Administration has had extensive discussions with the Panamanian government over the past year, at all levels of government, regarding these concerns. Indeed, just yesterday, I had the opportunity to meet with Vice President Varela. As a result of our efforts, Panama has already implemented several important labor reforms and we are working with the government toward others, as well as to enhance Panama's transparency on financial matters and the exchange of tax information.
In the case of Colombia, the Administration has been conducting extensive fact-finding in order to identify what additional steps the Colombian government, with U.S. support, could take to ensure that fundamental labor rights can be fully exercised in Colombia. The Colombian government has been exceptionally cooperative in this effort, engaging at every level. USTR led an interagency team to meet with all of the relevant ministries, the Prosecutor General's office and judges hearing labor cases.
This fact-finding has also involved reaching out to the U.S. Congress as well as labor unions, human rights organizations and private sector groups in the United States and Colombia. Meanwhile, with U.S. encouragement, the Colombian government has already taken a number of steps to address violence against unionists and improve its labor code.
As the President has said, to create jobs here at home we must strengthen our relationships with key trading partners. The Administration continues to believe that approval of the pending free trade agreements with Panama and Colombia can bring important economic benefits to the United States and to those countries.
Of course, free trade agreements are not the only way we engage with important partners in the hemisphere. The United States also has a series of bilateral trade dialogues with a number of countries in Latin America. With Uruguay, for instance, we are looking forward to working with the new government to build upon the important substantive commitments on trade facilitation and environmental issues that have been undertaken as part of our work under the Trade and Investment Framework Agreement.
With Paraguay, we are making progress on intellectual property rights issues and issues relating to small and medium-sized enterprises. And we are working hard to enhance and reenergize our trade and investment dialogues with a number of other countries.
For example, just last year I traveled to Brazil to discuss ways to move our bilateral meetings away from focusing on long-standing irritants toward more collaborative efforts. This idea was well received, and we are now working with Brazil to examine different models to achieve this goal. I am also pleased that we have reengaged in our trade dialogue with Ecuador, holding our first formal bilateral meeting of the Trade and Investment Council in over a decade and the first meeting of the Bilateral Council on Trade and Investment in seven years.
Our constant engagement with partners across the Americas has laid a firm foundation of friendship on which to resolve trade disputes.
When Canada approached the United States expressing its concern over the Buy American requirements in the Recovery Act, we saw an opening to turn a short-term bilateral concern into a long-term opportunity for both of our countries. For years, the United States and other countries have sought access to Canada's provincial procurement markets through the World Trade Organization's Government Procurement Agreement (GPA) negotiations. The waiver provisions of last year's new Buy American requirements caused Canada to rethink its long-standing opposition to opening its provincial procurement markets. We were able negotiate a deal creating new access on both sides of the border to our respective procurement markets.
Another example of successful engagement is our ongoing work to resolve our cotton dispute with Brazil. We engaged with stakeholders and the Congress, we had extensive conversations with Brazil, and we thought creatively and pragmatically. These steps have allowed us to develop a path forward; one that we hope will allow us to resolve our dispute over the long term, and one that avoids the costs of trade retaliation for both economies. I am confident that with continued engagement, we will be successful.
The situation with Mexico and cross-border trucking has a longer and less happy history. But let me make clear that I remain convinced the best interests of the United States are served by working with the Congress and Mexico to resolve this dispute in a manner that is consistent with our international obligations, and ensures that our roads are safe and that all drivers meet U.S. qualifications.
The goal, of course, of all of these efforts, is to allow countries to move forward to the next positive steps in their relationships. Right now, the United States is particularly excited to be moving to next steps with a new free trade arrangement involving two of our hemispheric partners—Peru and Chile—as part of a Trans-Pacific Partnership or TPP. The TPP provides an opportunity to deepen the linkages between two of the most dynamic regions in the world, Asia and the Americas, with a 21st century trade agreement.
There are many other ways that the United States will continue to engage with the countries of the Americas—multilaterally through the Doha Round negotiations, where we continue to lead the way toward a more balanced and ambitious agreement with meaningful market access for all— and also through trade preference programs and other work. I should say a word here about Haiti. Along with many governments in the hemisphere, we reached out to the Haitian people in the aftermath of January's devastating earthquake. The initial focus was on humanitarian assistance, but as attention has turned to Haiti's long term recovery and attracting investors to create jobs. The United States already has trade preference programs for Haiti, but the Administration has been working with Congress to expand the benefits available to Haiti and to extend the duration of the program. In addition, we are encouraging U.S. brands and retailers to work toward sourcing one percent of their total apparel production from Haiti, in the Plus One for Haiti initiative.
The goal of the United States with all of our trading partners is to build mutually beneficial economic relationships that benefit people in both our countries, with the good jobs and economic opportunity that our people can make for themselves if the playing field is a level one. Through bilateral relationships, multilateral relationships, and the closeness that we all desire with our near neighbors, the future of U.S. engagement with our partners in the Americas looks robust and bright. Thank you.
Press Release from the Office of the U.S. Trade Representative, May 20, 2010Footnote 18
Today the Office of the United States Trade Representative (USTR) and the Libyan General People's Committee on Industry, Economy and Trade have signed a Trade and Investment Framework Agreement (TIFA). The TIFA will provide a forum to address trade issues and will help build trade and investment relations between the United States and Libya. Christopher Wilson, Assistant U.S. Trade Representative for Europe and the Middle East, and Undersecretary Taher M. Sarkez of the General People's Committee for Industry, Economy, and Trade signed the agreement today in Tripoli.
The TIFA will establish a forum for discussion of our bilateral trade and investment relations and will help build those relations. The TIFA mandates the formation of a joint U.S.-Libya Council on Trade and Investment (“The Council”) which will address a wide range of trade and investment issues including market access, intellectual property, labor, and environmental issues. The Council will also help to increase commercial and investment opportunities by identifying and working to remove impediments to trade and investment flows between the United States and Libya.
Press Release from the U.S. Trade and Development Agency, May 21, 2010Footnote 19
In the lead-up to the U.S.-China Strategic and Economic Dialogue, Director Leocadia I. Zak traveled to Shanghai and Beijing, China this past week with Commerce Secretary Gary Locke to promote the export of U.S. clean energy technologies and services. Supporting the goals of the National Export Initiative, Director Zak worked to find ways USTDA's program can open China's market to U.S.-manufactured clean energy technologies as China continues to confront increasing demand for energy.
When Director Zak met with the U.S. China Energy Cooperation Program in Shanghai, she said that the United States works closely with the private sector as it seeks to access China's market for clean energy opportunities.
“Exporting clean energy, a priority of the National Export Initiative, will help the United States reach its goal to double its exports over the next five years,” said Zak. “The clean energy business development mission provides an opportunity to create green jobs through increased U.S. exports abroad.”
In November 2009, President Obama launched USTDA's U.S.-China Energy Cooperation Program, which leverages private sector resources for clean energy project development in China.
The clean energy business development mission has promoted exports of leading U.S. technologies related to clean energy, energy efficiency and electric energy storage, transmission, and distribution.
The following companies are participating on the trade mission: 3TIER Inc.; AES Corporation; BPL Global, Ltd.; Capstone Turbine Corporation; Composite Technology Corporation; Covanta Energy Corporation; CURRENT Group, LLC; Dais Analytic Corporation; Duke Energy Corporation; DuPont; First Solar, Inc.; General Electric Company; MulvannyG2 Architecture; Oshkosh Corporation; Peabody Energy; Pratt & Whitney Power Systems, Inc.; Principle Power, Inc.; Suniva, Inc.; Synthesis Energy Systems, Inc.; The Boeing Company; The Dow Chemical Company; The McGraw-Hill Companies; The Timken Company; and United Solar Ovonic.
Following the clean energy trade mission, Director Zak will remain in Beijing for the U.S.-China Strategic and Economic Dialogue where she will conclude grant agreements to support U.S. companies efforts to supply China's market for energy and aviation development.
Press Release from the Office of the U.S. Trade Representative, May 21, 2010Footnote 20
Today, U.S. Ambassador to the World Trade Organization (WTO) Michael Punke and European Union (EU) Chargé d'Affaires John Clarke met in Geneva with Japanese Ambassador Shinichi Kitajima to express long-standing and serious concerns that are shared by the United States and the EU regarding the lack of a level playing field between Japan Post and private sector companies in the insurance, banking, and express delivery sectors.
“We met jointly with Japan to underscore the deep level of concern that we both share regarding Japan's preferential treatment of Japan Post in light of Japan's national treatment commitments under the WTO,” explained Ambassador Punke.
Ambassador Punke and Mr. Clarke stated that both the United States and the EU remain neutral on whether Japan Post should be privatized, believing this to be a decision for Japan to make. However, they expressed disappointment that the draft postal reform legislation submitted to the Diet does not address U.S. and EU concerns about the preferential treatment that Japan Post currently receives compared to private sector companies. They also raised common concerns regarding provisions in the draft legislation that give Japan Post additional competitive advantages, including less rigorous regulation of Japan Post operations.
In addition, Ambassador Punke and Mr. Clarke cautioned that they are troubled by provisions that open the door for the Japan Post insurance and banking companies to expand the scope of their businesses before a level playing field is established.
“We strongly urge Japan to address our shared level playing field concerns and to live up to its WTO obligations as it proceeds with its postal reform legislation,” Mr. Clarke said. The two diplomats emphasized that the United States and the EU both look forward to continuing to work together with Japan to address these concerns.
Press Release from the Office of the U.S. Trade Representative, May 26, 2010Footnote 21
Senior U.S. trade officials today encouraged China to create an open environment for innovation and make progress on other priority trade issues at the first-ever MidYear Review Meeting for the U.S.-China Joint Commission on Commerce and Trade (JCCT). The meeting allowed the two governments to take stock of our trade and investment relationship, identify key policy concerns, and prepare for the upcoming 2010 JCCT plenary meeting.
Under Secretary of Commerce for International Trade Francisco Sánchez and Deputy United States Trade Representative Demetrios Marantis co-chaired the meeting for the United States with their Chinese counterpart Vice Minister of Commerce Ma Xiuhong.
“Today's meeting will help us promote open trade and cross-border investment, create an open environment for innovation, and enhance transparency and the rule of law. I believe we have laid the groundwork for a successful JCCT later in 2010 that will help spur economic growth and job creation,” Sánchez said. “We are working to leverage the JCCT as well as other forums with China and other countries to help achieve President Obama's goal of doubling U.S. exports in the next five years.”
“We are rolling up our sleeves to work on the tough issues that directly affect U.S. jobs and exports of goods and services,” Ambassador Marantis said. “We are focused on addressing indigenous innovation and other discriminatory industrial policies, improving enforcement of intellectual property rights, and ending non science-based regulations that block U.S. agricultural exports.”
The JCCT, established in 1983, is the main forum for addressing bilateral trade matters and promoting commercial opportunities between the United States and China. Since 2003, when the status of the JCCT was elevated, the Secretary of Commerce and the U.S. Trade Representative have co-chaired the United States side and a Vice Premier has chaired the Chinese side. In 2009, China was the United States’ third-largest export market and remains a critical destination for U.S. manufactured goods and services.
BACKGROUND
Francisco Sanchez's trip to China is his first since becoming Under Secretary for International Trade on March 29, 2010. While in Beijing, he also participated in the U.S.-China Strategic & Economic Dialogue and met with U.S. industry leaders and Chinese government officials to help increase U.S. exports to China. He also visited the USA Pavilion to meet with the pavilion sponsors at the Shanghai Expo.
This is the fifth trip to China by Demetrios Marantis since taking his post as Deputy U.S. Trade Representative on May 6, 2009. During his visit to Beijing, he also participated in the U.S.-China Strategic & Economic Dialogue and held a number of other meetings with Chinese officials and U.S. companies.
Press Release from the Office of the U.S. Trade Representative, June 7, 2010Footnote 22
On June 7, 2010, a session of the U.S-EU Intellectual Property Rights (IPR) Working Group was held in Brussels. The meeting was co-chaired by the European Commission's Directorate General (DG) for External Trade for the European Union and the U.S. Trade Representative's Office and the U.S. Department of Commerce for the United States. The session commenced in the morning with a briefing for transatlantic stakeholders hosted at the offices of DG Trade. At the briefing, officials from both sides of the Atlantic reported on ongoing cooperative efforts to strengthen intellectual property rights (IPR) protection globally and more specifically in Brazil, China, India, and Russia. Officials reviewed the current status of a number of multilateral discussions currently underway within the World Trade Organization (WTO), the Organization for Economic Co-Operation and Development (OECD), and the United Nations (UN). The parties also briefly discussed the current state of the Anti-Counterfeiting Trade Agreement (ACTA) negotiations.
Representatives of DG Enterprise and Industry and the Department of Commerce spoke on support for SMEs, particularly the web-based IPR resources that both have developed and agreed to continue to cooperate in the development of resources that will benefit SMEs . U.S. and EU Customs officials noted the success of past joint operations and information exchanges and indicated that discussions are on-going for future joint operations. In the afternoon, discussions continued when U.S. and EU officials met to discuss their respective bilateral efforts to strengthen IPR protection and capacity building efforts. Both parties agreed to continue to coordinate their efforts where appropriate.
The next meeting of the IPR Working Group is tentatively scheduled to take place in Washington in Fall 2010 . The Working Group will report on its activities to the Transatlantic Economic Council and the U.S.-EU Summit.
The United States and the European Union established the IPR Working Group in 2005. The Working Group is composed of officials representing lead agencies and services from both the United States and Europe. It was constituted to identify the areas and modalities for joint action. The Working Group works in close consultation with industry and other interested parties.
Press Release from the Office of the U.S. Trade Representative, June 17, 2010Footnote 23
Today Brazil's Ministers reached a decision in support of a Framework regarding the Cotton dispute, which would avert the imposition of countermeasures of more than $800 million this year. This includes more than $560 million in countermeasures against U.S. exports which were scheduled to go into effect on Monday, June 21, 2010, as well as possible countermeasures on intellectual property rights that could have taken effect later. We are pleased with this decision, and look forward to signing the Framework soon.
The findings in the Cotton dispute concern U.S. cotton support under the marketing loan and countercyclical payment programs, and the GSM-102 Export Credit Guarantee Program. In line with these findings, the Framework has two major elements.
First, it would provide, as a basis for a discussion toward reaching a mutually agreed solution to the dispute, a limit on trade-distorting cotton subsidies. Second, the Framework would provide benchmarks for changes to certain elements of the current GSM-102 program. In the Framework, the United States and Brazil would agree to meet quarterly to discuss the successor legislation to the 2008 Farm Bill as it relates to trade-distorting cotton subsidies and the operation of GSM-102. The Framework would not serve as a permanent solution to the Cotton dispute. However, it would provide specific interim steps and a process for continued discussions on the programs at issue with a view to reaching a solution to the dispute.
“I am pleased that we have been able to negotiate a Framework regarding the WTO Cotton dispute that would avoid the imposition of countermeasures against U.S. trade, including goods and intellectual property,” said Ambassador Kirk. “While respecting the role of the United States Congress in developing the next Farm Bill, this Framework would now allow us to continue to work toward a final resolution of the Cotton dispute. I believe this Framework will go a long way in alleviating the uncertainty in our business communities and enhance the ability of the United States and Brazil to build upon our dynamic trading relationship.”
“This framework agreement provides a way forward as we work with Congress toward a new farm bill in 2012,” said Secretary of Agriculture Tom Vilsack. “Although it is not a permanent solution, I am pleased that it allows us to maintain our programs while considering adjustments and avoiding the immediate imposition of countermeasures against U.S. exports as a result of the WTO cotton decision.”
Press Release from the Office of the U.S. Trade Representative, June 22, 2010Footnote 24
Today, United States Trade Representative Ron Kirk joined Vice President Biden, members of the President's cabinet and U.S. Intellectual Property Enforcement Coordinator Victoria Espinel to announce the Joint Strategic Plan on Intellectual Property Enforcement. The Obama Administration, including USTR is, highlighting the need to safeguard U.S. intellectual property because such protection is fundamental to safeguard American jobs, sustain American exports and strengthen the American economy.
At today's event with Vice President Biden, Ambassador Kirk discussed USTR's work to advance enforcement and protection of intellectual property rights overseas. Ambassador Kirk said, “USTR uses a full arsenal of trade policy tools to support and implement President Obama's commitment to aggressively protect American intellectual property rights around the world. We are actively engaged in bilateral and multilateral trade negotiations, dialogues, and cooperation that are particularly critical to advancing the effective enforcement and protection of intellectual property rights overseas. That engagement is backed by a strong commitment to ensuring that our trading partners deliver on their commitments.”
The Strategic Plan makes intellectual property enforcement a priority by ensuring that the U.S. dedicates the right resources and expertise, and that the Administration has the right processes in place. Under the plan the Obama Administration will:
Lead by example by making sure that the Federal government does not purchase or use illegal products, including ensuring that government procurement is secured against the infiltration of counterfeit parts;
Be transparent in how we develop and implement policies, how we share and report information at home and abroad, and through specific efforts such as increased information sharing with right holders and victims;
Ensure efficiency and coordination of our enforcement efforts across Federal, state and local levels, domestically and overseas, through means such as shared databases and increased coordination of investigation and training efforts;
Enforce our rights internationally by combating foreign-based websites and other entities that violate our intellectual property rights, by working with our trading partners to increase enforcement and ensuring that we are supporting in businesses in overseas markets, including China;
Secure our supply chain to stop illegal products from coming into the country by ensuring that law enforcement has authorities that it needs, by encouraging voluntary cooperation by the private sector to reduce infringement occurring in the physical and the online world and by vigorously investigating and prosecuting criminal activity, where warranted; and
Collect good data, such as analyzing jobs and exports that are generated by intellectual property-intensive industries to help drive future decisions and action and in order to build an open and fair environment for American intellectual property right holders.
At USTR key trade monitoring and enforcement initiatives include publication of the “Special 301 Report” which for more than two decades has focused on the global state of intellectual property rights protection and enforcement. Under the Obama Administration USTR has also completed two “Out-of-Cycle Reviews,” one for Israel, which will lead to enhanced protection of data submitted by pharmaceutical companies to obtain marketing approval in Israel, and to improvements to Israel's patent regime. The second review, for Saudi Arabia, resulted in enhanced protection of pharmaceuticals and improved enforcement of copyrights in that country.
In April, in part due to USTR-led engagement, Mexico passed a law expanding ex officio authority in connection with intellectual property rights enforcement. Then last month, the Philippines enacted a law to strengthen enforcement against illegal camcording in movie theaters.
Ambassador Kirk concluded, “Our efforts are paying off. I am eager to continue our hard work, in cooperation with Vice President Biden, Coordinator Espinel, and my colleagues Secretaries Locke, Holder, and Napolitano, to continue executing our role to help ensure that intellectual property rights policy is working for American workers and businesses here at home and around the world.”
Press Release from the Office of the U.S. Trade Representative, June 24, 2010Footnote 25
Today United States Trade Representative Ron Kirk and Agriculture Secretary Tom Vilsack welcomed the announcement that the United States and Russia have reached an agreement to permit the resumption of U.S. poultry exports to Russia.
Once the Agreement is signed, U.S. producers will be able to resume shipments of poultry to Russia. Under the agreement, the United States will publish information on USDA's website about which disinfectants/pathogen reductions treatments are known to be approved by Russia for use on processing poultry and on food generally. The United States will provide information to Russia on the solutions that companies use on poultry shipped to Russia. In addition, the United States will give Russia an updated list of poultry processing facilities authorized to ship poultry to Russia.
“I am pleased that after several months of negotiations, we have finally reached a breakthrough which will allow for U.S. poultry exports to resume to this important market,” said Ambassador Kirk. “In 2009, U.S. poultry exports to Russia were valued at $767 million. Today's agreement will not only benefit our farmers and ranchers, but it will help support agriculture jobs here at home.”
“This is an important achievement for U.S. agriculture,” said Agriculture Secretary Tom Vilsack. “Russia has long been the largest export market for U.S. poultry and regaining access to that market has been a top priority for the Obama Administration. I am pleased our countries have come to an agreement that will reopen this valuable market to U.S. producers.”
Press Release from the Office of the U.S. Trade Representative, June 26, 2010Footnote 26
U.S. Trade Representative Ron Kirk today welcomed President Barack Obama's direction to complete the U.S.-Korea Free Trade Agreement (KORUS FTA). The President has asked Ambassador Kirk to initiate new discussions with his Korean counterpart, Minister of Trade Kim Jong-hoon, to resolve outstanding issues in a way that levels the playing field for U.S. workers and producers, with the objective of completing that process by the President Obama's visit to South Korea for the next G-20 meeting in November. After the meeting and with those issues successfully resolved, the President would then submit the KORUS FTA to Congress in the following months.
“During the past year, USTR has conducted extensive discussions with a wide range of stakeholders and with congressional leaders to gain a detailed understanding of their concerns about this agreement. Now, at President Obama's direction, we look forward to finalizing ways to address these concerns, level the playing field for U.S. workers and producers in the key sectors of autos and beef, and deliver to Americans the jobs and economic opportunity this agreement can bring,” said Kirk. “I expect to speak to Minister Kim today to express our intention to get to work as quickly as possible. USTR will be consulting closely with Congress and stakeholders before we initiate further discussions with our South Korean counterparts, to ensure that our proposals adequately address outstanding concerns—and these consultations will continue throughout the process.”
Excerpts of Remarks by President Obama, June 27, 2010Footnote 27
President Barack Obama delivered these remarks at a G-20 press conference in Toronto, Canada
President Obama. Please, everybody, have a seat. Good evening. I want to thank our wonderful hosts—first and foremost, my friend and partner, Prime Minister Harper, as well as the Canadian people, and the people of Toronto, for their extraordinary hospitality.
The success of these summits—the G8 in Muskoka and the G20 here in Toronto—is a tribute to Canadian leadership. I also want to thank my fellow leaders for the sense of purpose that they brought to this summit.
The G20 is now the premier forum for international economic cooperation. We represent East and West, North and South, advanced economies and those still emerging. Our challenges are as diverse as our nations. But together we represent some 85 percent of the global economy, and we have forged a coordinated response to the worst global economic crisis in our time.
In London last year, we took unprecedented action to prevent an even larger economic catastrophe, to put our economies on the path to recovery and to begin reforming our financial system so that a crisis like the one we were emerging from never happened again.
In Pittsburgh we went further—moving beyond the old economic cycles of boom and bust by committing our nations to a new framework for growth that's balanced and sustained, as well as specific financial reforms. So we came to Toronto with three specific goals: to make sure the global recovery is strong and durable; to continue reforming the financial system; and to address the range of global issues that affect our prosperity and security. And we made progress in each of these areas.
First, to ensure the recovery is strong and durable, we agreed to continue coordinating our efforts so we're creating jobs. That's my highest economic priority as President. And that is why we are focused on increasing global demand. Every economy is unique, and every country will chart its own unique course, but make no mistake—we are moving in the same direction.
As I reiterated to my colleagues, after years of taking on too much debt, Americans cannot—and will not—borrow and buy the world's way to lasting prosperity. No nation should assume its path to prosperity is simply paved with exports to the United States. Indeed, I've made it clear that the United States will compete aggressively for the jobs and industries and markets of the future.
That's why I've set the goal of doubling our exports over the next five years—an increase that would support millions of jobs in the United States. It's why I've launched a National Export Initiative to help meet this goal. It's why we focused earlier this week on deepening our economic cooperation with Russia—which would benefit both of our countries— including restarting our poultry exports, and accelerating our efforts to support Russia's entry into the WTO.
And because a durable recovery must also include fiscal responsibility, we agreed to balance the need for continued growth in the short term and fiscal sustainability in the medium term. In the United States, I've set a goal of cutting our deficit in half by 2013. A number of our European partners are making difficult decisions, but we must recognize that our fiscal health tomorrow will rest in no small measure on our ability to create jobs and growth today.
The second area we focused on was advancing the goal of financial reform. Just as we're on the verge of passing financial reforms in the United States, our European partners have committed to the process we went through in the United States—a new level of transparency and a stress test for banks to rebuild confidence.
Here in Toronto, we reaffirmed our commitment to the highest global standards. To maintain momentum, we directed our teams to finalize for our meeting in Seoul a global framework to ensure that banks hold enough capital to withstand the stresses of government intervention. Rules must be clear. Oversight must be strong. Complex trades—like derivatives—must be brought into the light of day. Excessive risk-taking and abusive practices must be prevented. Consumers must be protected. In short, we have to do everything in our power to avoid a repeat of the recent financial crisis.
Q. Thank you, Mr. President. Do you think the decision by your G20 counterparts here to endorse stiff deficit reduction goals is a repudiation of your view that cutting deficits too quickly and too fast would hinder the global economic recovery?
President Obama. [W]e helped to draft this communiqué, which reflects our policies. I know leading up to the conference, leading up to the summit, there was some sense of a divide. In fact, the policies that we've been promoting are reflected in the communiqué and entirely consistent with what the G20 leaders came up with.
Keep in mind that we had already proposed a long time ago that we were going to cut our deficits in half by 2013. And so the time frame and the measures that have been adopted are consistent with our view that it is important for us to make sure that in the medium and long term, we are paying attention the big deficits and debts that we have out there.
What we did say coming to this conference is we can't all rush to the exits at the same time. So countries that have surpluses should think about how can they spur growth and how can they spur demand. Not all of those involve stimulus. Some of them might involve structural changes in their economy. Some of them might involve passing financial regulatory reforms so that their banks are lending again.
But the point is that in each country what we have to recognize is that the recovery is still fragile, that we still have more work to do to make this recovery durable—but we also have to recognize that if markets are skittish and don't have confidence that we can tackle the tough problems of our medium- and long-term debt and deficits, then that also is going to undermine our recovery.
Now, there are going to be some countries—Greece being the most obvious example—that have to act immediately because they're facing a sovereign debt crisis. There are going to be other countries where the issue really has to do with how do we start putting in place some plans that are credible for deficit reduction, even though they don't kick in significantly in this first year.
So, for example, Germany, which cares deeply, obviously, about the issue of fiscal consolidation—if you actually look at their plans, they're no more front-loaded than ours are. In fact, you can make the argument that some of the steps that I've already taken—freezing domestic discretionary spending for the next three years in my budget, passing PAYGO, setting up a fiscal commission to tackle issues like entitlements long term—that many of those decisions are comparable to some of the decisions that have been made by those who are promoting fiscal consolidation.
So I think this has really been an issue in which there is violent agreement between the parties. We have to make sure we're not rushing to the exits too quickly and all at the same time. But we also have to be mindful that the debt and deficit levels that many advanced countries have right now are unsustainable and have to be dealt with in a serious way.
Q. [I]n your meeting with Hu Jintao yesterday, you called for the cooperation from Chinese side to send a clear message to North Korea as a consequence. How do you look at response so far? Is it favorable and strong enough to send a united, clear message to North
Korea? Thank you.
President Obama. I had the conversation with President Hu. I was very blunt. This is not an issue where you've got two parties of moral equivalence who are having an argument. This is a situation in which you have a belligerent nation that engaged in provocative and deadly acts against the other. And I think it is very important that we are clear about that.
Now, I am sympathetic to the fact that North Korea is on China's border. They have a security interest in not seeing complete chaos on the Korean Peninsula or a collapse that could end up having a significant impact on them. And so I think the United States and the international community should be mindful that this is in China's backyard.
And so when they adopt a posture of restraint, I understand their thinking. But I think there's a difference between restraint and willful blindness to consistent problems. And my hope is that President Hu will recognize as well that this is an example of Pyongyang going over the line in ways that just have to be spoken about seriously—because otherwise we're not going to be able to have serious negotiations with the North Koreans.
I, like I think every participant in the six-party talks, would love nothing more than to see these issues resolved diplomatically. So in that, China and the United States and Japan and South Korea and Russia all share a common interest. We'd like to see a denuclearized Korean Peninsula. We'd like to see a North Korea that is a responsible member of the world community—which would be good for the people of North Korea.
But that's only going to happen if we're honest about what's taking place right now and if we're honest about our basic expectations of how nations behave in an international order.
Q. Are there steps your administration can take now to build confidence that the U.S. will, in fact, meet its deficit reduction goals in the medium and long term?
President Obama. Several steps we've already begun to take: Number one, as Iindicated, the budget that we're presenting—three years discretionary domestic spending freeze. And I've sent a clear signal to the leadership when we met, even if we do not get the entire budget package passed through Congress, that top line number needs to stay firm. And I'm serious about it.
We've initiated a whole host of measures to cut programs that aren't working, including, by the way, in the defense area. Bob Gates has been, I think, as successful as any Secretary of Defense in recent memory in actually killing programs, which I think anybody who follows Washington knows is very—very difficult.
We have instituted PAYGO. And although there were baselines built in that took into account the fact that some of this stuff was not going to be solved overnight, it is starting to provide budget discipline to Congress as they move forward.
And we have set up this fiscal commission who will provide reports starting in November—and one of the encouraging things, although there was resistance, ironically, on the part of some of the Republicans who originally had been cosponsors of legislation to create the fiscal commission and they, in fact, ended up voting against it—what's been encouraging, based on what I'm hearing both from Democrats and Republicans, is that there's been a serious conversation there. People are looking at a whole spectrum of issues to get at what is basically a structural deficit that preceded this financial crisis.
Even if—the financial crisis made it much worse, but even if we had not gone through this financial crisis, we'd still have to be dealing with these long-term deficit problems. They have to do with Medicaid; they have to do with Medicare; they have to do with Social Security. They have to do with a series of structural problems that are not unique to America. Some of it has to do with an aging population. And we've got to look at a tax system that is messy and unfair in a whole range of ways.
And so they're looking at the gamut of steps that are going to be taken. And one of the interesting things that's happened over the last 18 months as President is for some reason people keep on being surprised when I do what I said I was going to do. So I say I'm going to reform our health care system and people think, well, gosh, that's not smart politics, maybe we should hold off. Or I say, we're going to move forward on “don't ask, don't tell,” and somehow people say, well, why are you doing that, I'm not sure that's good politics.
I'm doing it because I said I was going to do it. And I think it's the right thing to do. And people should learn that lesson about me, because next year when I start presenting some very difficult choices to the country, I hope some of these folks who are hollering about deficits and debt step up, because I'm calling their bluff. And we'll see how much of that—how much of the political arguments they're making right now are real, and how much of it was just politics.
All right? Thank you very much, everybody.
Press Release from the Office of the U.S. Trade Representative, June 28, 2010Footnote 28
U.S. and Angolan trade and development officials met today to discuss means for strengthening bilateral trade and investment ties. The meeting was the first held under the United States-Angola Trade and Investment Framework Agreement (TIFA), which was signed in May 2009. The TIFA provides a high-level forum for advancing cooperation on the full spectrum of trade and investment issues between the United States and Angola.
Assistant U.S. Trade Representative for Africa Florie Liser and Angolan Commerce Vice Minister Archer Mangueira co-chaired the day-long meeting, which focused on bilateral trade, implementation of the African Growth and Opportunity Act (AGOA), investment promotion, the business environment, agri-business prospects and development, and trade-related transportation and infrastructure issues. The two delegations also discussed the elements of a joint workplan for tracking progress in each of these issues areas.
“Angola is one of the United States’ most important trade and investment partners in sub-Saharan Africa. Angola's international partners and investors recognize that the country is moving in the right direction and has great potential. Today's meeting helped us to chart a course for further strengthening our economic engagement,” said AUSTR Liser. “Among the topics we discussed were means to improve the business and investment environment in Angola and ways to diversify U.S.-Angolan trade, which has been dominated by energy-related goods and services. The workplan we developed will guide our efforts over the coming year on a wide range of issues.”
The U.S. delegation to the meeting in Luanda included U.S. Ambassador to Angola Dan Mozena and officials from the U.S. Department of State, the U.S. Department of Agriculture, the U.S. Department of Transportation, the U.S. Agency for International Development, and the U.S. Trade and Development Agency. Background
Angola is the United States’ third largest trading partner in sub-Saharan Africa, behind only Nigeria and South Africa. Two-way trade totaled $10.7 billion in 2009 ($9.3 billion in U.S. imports from Angola and $1.4 billion in U.S. exports), a decrease of 49 percent from 2008, due in large part to the global economic downturn. However, trade rebounded in the first four months of 2010, increasing by 40 percent over the same period in 2009. Angolan exports to the United States are dominated by mineral fuels and oil but also include precious or semiprecious stones and metals. Angola is a leading beneficiary of AGOA, though to date it has exported only oil and energy products under the AGOA preference program. The leading U.S. exports to Angola are machinery, aircraft, vehicles, and medical equipment.
Press Release from the Office of the U.S. Trade Representative, June 30, 2010Footnote 29
United States Achieves Landmark Victory in WTO Airbus Case
Today United States Trade Representative Ron Kirk announced that a World Trade Organization (WTO) dispute settlement panel confirmed that decades of subsidies provided by the European Union (EU) and certain member states to Airbus are inconsistent with WTO rules. Specifically, the WTO Panel found that every instance of launch aid provided by certain EU nations for new Airbus aircraft over the last forty years, as well as other subsidies the United States had challenged, caused adverse effects to the interests of the United States and therefore are WTO-inconsistent subsidies. The Panel also concluded that certain launch aid provided for the A380 super-jumbo jet was a prohibited export subsidy under WTO rules.
“This important victory will benefit American aerospace workers, who have had to endure watching Airbus receive these massive subsidies for more than 40 years. These subsidies have greatly harmed the United States, including causing Boeing to lose sales and market share. Today's ruling helps level the competitive playing field with Airbus,” said Ambassador Kirk. “Protecting the rights of American manufacturers, as well as farmers, ranchers, services providers, and workers under our trade agreements continues to be a priority of this Administration. President Obama and I are committed to enforcing our trade agreements and, when necessary, using the dispute settlement process that is consistent with the rules-based global trading system at the World Trade Organization.”
In reaching these findings, the Panel concluded that European government launch aid had been used to support the creation of every model of large civil aircraft produced by Airbus. The Panel's findings also confirmed that launch aid and the other challenged subsidies to Airbus have significantly distorted the global market for large civil aircraft, and that those subsidies have directly resulted in Boeing losing sales and market share.
“What emerges clear as day from this panel report is that Europe has never been able to provide launch aid in a manner that is consistent with its WTO obligations,” said Office of the United States Trade Representative General Counsel Tim Reif. “This panel report should therefore be a strong signal to the European Union and the member states to refrain from future launch aid disbursements.”
