Press Release from the Office of the U.S. Trade Representative, April 15, 2011Footnote ¹

Today United States Trade Representative Ron Kirk and Nepalese Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari signed a Trade and Investment Framework Agreement (TIFA), which will provide a forum for bilateral talks to enhance trade and investment, discuss specific trade issues, and promote more comprehensive trade agreements between the United States and Nepal.

“I am so pleased to be able to sign this TIFA with Nepal so the United States can enhance its trade and investment relationship with this important South Asian country. We now have an institutional framework for discussing trade and investment issues and learning more about each other's legal, regulatory and trading regimes,” said Ambassador Kirk. “The United States looks forward to deepening its relationship with Nepal and breaking down any and all barriers that may prevent our producers, exporters and ranchers from selling their products in Nepal.”

Nepal is a small mountainous country with a population of 29.3 million people. After a decade-long civil war, the Nepalese government transitioned from a monarchy to a federal democratic republic in 2008.

In 2010, U.S. exports to Nepal were about $28 million. The top export categories to Nepal were aircraft, machinery, and optic and medical instruments. Nepal gained membership in the World Trade Organization in 2004. In 1947, the United States and Nepal signed a bilateral Economic and Trade Agreement which will be replaced by the TIFA signed today.

The United States-Nepal Council on Trade and Investment created pursuant to the TIFA, will address a wide range of trade and investment issues, such as capacity building and technical assistance, intellectual property rights, worker rights, environmental protection, and removing barriers to bilateral trade. The Council is a permanent body which will meet regularly and, when appropriate, involve the private sector and civil society from both countries in discussions.

The United States has TIFAs with many important trading partners. In South and Central Asia, the United States has signed TIFAs a number of countries, including, Afghanistan, Pakistan, Sri Lanka, and Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan). The United States addresses trade and investment issues with India through the U.S.-India Trade Policy Forum.

Press Release from the Office of the U.S. Trade Representative, April 18, 2011Footnote ²

Today United States Trade Representative Ron Kirk sent the following letter to the Chairmen and Ranking Members of the Senate Committee on Finance and the House Committee on Ways and Means regarding the next step for the U.S.-Panama Trade Promotion Agreement: On February 9, 2011, I testified before the Committee on Ways and Means of the House of Representatives that the President had directed me to intensify engagement with Panama to resolve the outstanding issues related to the United States–Panama Trade Promotion Agreement (the “Agreement”) as quickly as possible this year. In the following days, I met with Panama's Vice President, Juan Carlos Varela, and afterwards our officials agreed upon a set of actions that, when completed, would ready the Agreement for Congressional consideration. Panama has now fulfilled its commitments regarding those actions.

I am pleased to report to you that the Office of the United States Trade Representative has completed its preparatory work on the Agreement and stands ready to begin technical discussions with Members of Congress on the draft implementing bill and draft Statement of Administrative Action. We hope our discussions to review these documents can commence without delay so that we can work together to bring the benefits of this Agreement home to American businesses, farmers and workers.

Press Release from the U.S. Trade and Development Agency, April 18, 2011Footnote ³

Today, USTDA continued its support of the ongoing U.S.-China Aviation Cooperation Program (ACP) by committing an additional $875,871 to the seventh phase of the successful partnership between USTDA, the Federal Aviation Administration (FAA), U.S. industry and the Civil Aviation Administration of China (CAAC). These funds will partially fund an Executive Management Training program, an Air Traffic Management Executive Training program, and the development of an Air Traffic Flow Management Playbook.

In addition to promoting beneficial trade and cooperation, the program will build upon the work already undertaken in earlier phases to expand China's regional aviation market through the development of a framework for managing its continued growth. In addition to the USTDA funds announced today, matching funds will be provided by the U.S. aviation industry with significant contributions from the CAAC, thereby linking the U.S. and Chinese government and aviation industries in a multi-faceted program to promote technical, policy and commercial cooperation.

“We have been so encouraged by the previous successes of the U.S.-China Aviation Cooperation Program that we are pleased to continue our support,” USTDA Director Zak stated at the signing. “China's aviation industry is growing rapidly and is closely tied to the U.S. aviation industry. I believe the cooperation between USTDA and CAAC is a critical component in that relationship.”

The USTDA 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 of the CAAC, FAA, USTDA and ACP.

USTDA helped to launch the ACP with the CAAC in early 2004. In addition to today's grant, USTDA has provided over $6.7 million in support of prior ACP phases. To date, USTDA has identified very strong Chinese demand of U.S. aviation products that are attributable to funding for the ACP. It is envisioned that the expansion of the ACP will strengthen the bilateral partnership and open further opportunities for the best in American manufactured goods and services.

Press Release from the U.S. Trade and Development Agency, April 26, 2011Footnote ⁴

In response to President Obama's call for increased cooperation in agriculture during his trip to India in November, USTDA is supporting a reverse trade mission to the U.S. for twelve Indian representatives to learn about modern cold chain technologies and U.S. practices and standards. Because of the lack of cold chain infrastructure to keep fruit and vegetables fresh in India, a quarter or more of agricultural produce is wasted in a country where many go hungry. The trade mission will aim to introduce the technology necessary to improve India's cold chain infrastructure, which would enhance the country's ability to maintain the value and quality of its agricultural production. An efficient cold chain system is an important component of India's agricultural economy and is vital for the country's development.

“We are very proud and excited to continue our work supporting cold chain technologies in India,” stated USTDA Director Leocadia Zak. “This trade mission offers an opportunity to introduce U.S. cold chain technologies to India while continuing our dialogue about best practices in the sector.”

The trade mission will take place April 23 through May 6, 2011 and will include visits with U.S. companies and U.S. government representatives in Atlanta, New Orleans, and Washington, DC. The visit will include delegates both from the Ministry of Food Processing and the National Horticulture Board, as well as private sector operators of cold chain facilities in India. While in New Orleans, the delegates will attend the International Association of Refrigerated Warehouses (IARW)/World Food Logistics Organization (WFLO) Annual Convention and Expo, the largest cold chain trade show, and will provide an opportunity to meet a large variety of U.S. suppliers.

This trade mission supports the ongoing U.S.-India Agricultural Dialogue's efforts to extend food security in India. It will introduce the Indian delegates to U.S. technology and expertise in the areas of harvesting, storing, processing, and transporting agricultural products. Exposure to U.S. technology in this area will decrease spoilage and maintain a high level of quality throughout the supply chain in India to ensure food safety and security.

Press Release from the Office of the U.S. Trade Representative, May 26, 2011Footnote ⁵

United States Trade Representative Ron Kirk and Mexican Secretary of Economy Bruno Ferrari today signed an agreement that will ease burdens on U.S. companies, especially smaller manufacturers, seeking to export telecommunications products to Mexico, while maintaining our high levels of safety protection and facilitating cross-border trade. Under the Mutual Recognition Agreement between the Government of the United States and the Government of the United Mexican States for Conformity Assessment of Telecommunications Equipment, Mexican regulatory authorities will accept tests performed by recognized U.S. laboratories to determine the conformity of telecommunications equipment with Mexican technical requirements, rather than requiring additional testing before the American products can be sold in Mexico. The full text of the agreement is available here.

“This agreement will save American manufacturers money and time by allowing them to test their products only once before exporting them to Mexico, supporting good jobs here at home and further facilitating the vital trade that happens between our two economies,” said Ambassador Kirk.

Mexico is the United States' third-largest goods trading partner, with a total two-way goods trade of $393 billion in 2010. This agreement further cements the mutually beneficial U.S.-Mexico trade relationship and supports American and Mexican businesses and workers with opportunities for growth.

This agreement will permit recognized U.S. laboratories to test telecommunications products for conformity with Mexican technical requirements, and vice versa. This saves manufacturers the time and expense of additional product testing and lowers prices for consumers. The agreement covers equipment subject to telecommunications regulation, including wire and wireless equipment, and terrestrial and satellite equipment. Under the agreement, both parties have committed to undertake confidence building measures during an 18 month transition period, which will include joint meetings and training opportunities for government officials involved in designating and recognizing testing laboratories and reviewing test reports.

The agreement fully preserves the authority of the U.S. Federal Communications Commission to determine the level of safety protection it considers appropriate, and in no way lowers current U.S. safety requirements.

Press Release from the Office of the U.S. Trade Representative, June 7, 2011Footnote ⁶

Today, United States Trade Representative Ron Kirk met with business and international trade students from the University of Dar es Salaam and the University of Mzumbe in Dar es Salaam, Tanzania. During the session, he discussed the importance of trade in promoting economic growth in Africa and the United States. He highlighted the importance of the U.S.-African trade relationship. He also discussed the urgent need to prepare the next generation of government and business leaders for the demands of an increasingly competitive global economy.

“For all of the world's needs, Africa has many answers,” said Ambassador Kirk. “Tanzania has been particularly blessed with extraordinary natural resources and, as the next generation of Tanzania's leaders, you need to lead the way in taking advantage of those resources so Tanzania can realize its full potential.”

Ambassador Kirk's two-day trip highlighted the strong partnership between the U.S. and Tanzania. Prior to meeting with students, Ambassador Kirk spoke at a reception in Dar es Salaam as part of the 2nd Annual African AmCham (American Chamber of Commerce) Summit, which was attended by representatives from more than a dozen African AmChams, local Tanzanian business leaders and Tanzanian government officials. In his remarks, Ambassador Kirk focused the progress made under AGOA, but also discussed the need to do more to increase U.S. exports to Africa in order to support America's economic recovery at home.

“Tanzania and the United States have a true partnership that is helping local workers, farmers and businesses flourish. The Obama Administration has invested considerable energy and resources in efforts to ramp up two-way trade between the United States and African countries. The Unites States is betting on Tanzania,” said Ambassador Kirk.

While in Dar es Salaam, Ambassador Kirk met with President Jakaya Mrisho Kikwete of Tanzania to discuss the bilateral trade and investment relationships between the two countries. Ambassador Kirk commended Tanzania for being one of only four countries worldwide to be selected for President Obama's new Partnership for Growth (PFG) initiative, which seeks to promote broad-based economic growth in developing countries that show a demonstrated commitment to development and democratic governance. Ambassador Kirk also met with Tanzania's Minister of Trade, Industry and Marketing, Cyril Chami to encourage continued cooperation and progress under the United States–East African Community (EAC) Trade and Investment Framework Agreement (TIFA).

On June 6, prior to his visit to Dar es Salaam, Ambassador Kirk traveled to Arusha, Tanzania. There he met with U.S. tourism companies and visited several small farms that have benefited from exporting products to the U.S. Ambassador Kirk toured a flower seed farm that contracts with MultiFlower to export to American and European farms. He also visited Pendo Farm, that exports most of its coffee beans to U.S. companies, including Starbucks. Arusha is one of the country's primary centers for agriculture business and is benefitting from U.S. trade capacity building assistance.

“Agriculture is an important industry for jobs and economic growth in Tanzania—particularly here in Arusha,” said Ambassador Kirk. “I was able to see first-hand how U.S.-Tanzania trade is contributing to the growth and success of this industry and providing a real benefit to local families. We will continue to work with the government and businesses here to build on this progress because Tanzania remains a key partner to the United States in this region of the world.”

Tanzania was the United States' 126th largest export market in 2010. Total two-way trade between Tanzania and the U.S. was valued at $207 million in 2010. U.S. exports to Tanzania grew by 3.6 percent between 2009 and 2010, rising to $164 million. U.S. imports from Tanzania were valued at $43 million in 2010. Coffee accounts for 36 percent of all U.S. imports from Tanzania. Of total U.S. imports from Tanzania during 2010, $2.1 million entered duty-free under the African Growth and Opportunity Act (AGOA) and including the General System of Preferences (GSP), up from $1.8 million in 2009.

Press Release from the U.S. Agency for International Development, June 9, 2011Footnote ⁷

The United States announced an additional commitment of up to $30 million per year for four years, subject to availability of funds, to boost trade capacity in Africa. United States Trade Representative, Ron Kirk, made the announcement during the opening session of the Tenth African Growth and Opportunity Act (AGOA) Forum today in Lusaka, Zambia.

This support will be directed to African Trade Hubs through the African Competitiveness and Trade Expansion Initiative (ACTE). The trade hubs—located in Accra, Ghana (with a satellite office in Dakar, Senegal); Nairobi, Kenya; and Gaborone, Botswana—are regional leaders in trade-related technical assistance that promote increased trade between Africa and the United States, among other African countries, and with the world. Enacted in 2000, AGOA aims to boost economic growth in Africa and, by extension, increase regional stability, and reduce poverty by providing duty-free entry to the U.S. market for most goods produced in eligible sub-Saharan African countries.

The ACTE initiative reflects the continuing commitment of the U.S. Government to support African trade capacity building and to help Africans to use trade to advance economic growth and development. ACTE also compliments activities taking place under Feed the Future, the U.S. Government's global hunger and food security initiative.

By building on the success of previous trade promotion activities in the region, this investment will facilitate an increase in African exports of non-traditional, value-added products, such as those promoted under AGOA, including apparel, footwear, and processed agricultural products. It will also help to enhance Africa's trade image in world markets, tailor trade-boosting activities to specific countries and sectors, and support evaluation and promotion of the most effective methods for building sustainable trade capacity. In addition, activities funded through this commitment will leverage private sector resources and investments by other donors.

Through ACTE, USAID will broaden and deepen the African Trade Hubs' ability to facilitate agricultural trade and develop successful value chains, as well as assist African firms in meeting plant health and food safety standards for their exports. ACTE will also help to improve the business-enabling environment for trade by reducing trade costs within Africa and working with businesses, trade associations, and governments to develop national export promotion and diversification strategies.

Previously, USAID channeled its work in this area through the African Global Competitiveness Initiative (AGCI), a five-year program launched in 2006. Through 2010, AGCI trade and investment programs facilitated over $178 million in AGOA exports, provided export capacity building assistance to over 234,000 firms, and trained nearly 660,000 Africans in trade capacity building. In addition, AGCI infrastructure programs leveraged over $2 billion in investment for infrastructure, and enabled 650,000 Africans to access Internet services.

Press Release from the U.S. Trade and Development Agency, June 9, 2011Footnote ⁸

During the first day of the African Growth and Opportunity Act Forum, Deputy Director Peggy Philbin announced USTDA's commitment to support multiple programs that will facilitate broad economic development across sub-Saharan Africa. These programs build on a track record of success of engaging senior public and private sector officials in the region by introducing them to U.S. technologies, goods and services that can help them achieve their development goals.

“In just one year since our International Business Partnership Program was announced, USTDA has doubled the number of reverse trade missions and greatly increased Africa's exposure to U.S. companies,” said Deputy Director Philbin. “The success of this program is the result of listening to Africa's needs and working towards a goal of mutual economic benefit.”

USTDA announced the launching of the Southern Africa Regional Rail Initiative, which will promote regional integration and intra-Africa trade in Southern Africa. The program will commence with a technical workshop for key stakeholders from the rail sector, and will be followed by a number of reverse trade missions to the United States to introduce senior rail officials to U.S. goods and services that can help increase rail capacity and efficiency.

USTDA also announced a reverse trade mission for 12 public and private sector representatives from sub-Saharan Africa's agribusiness sector. These officials will include large-scale agricultural producers with harvesting, planting, irrigation, storage and distribution infrastructure needs, along with government officials responsible for agricultural development. The visit will include a business briefing for the delegates to address the U.S. business community to detail their expansion plans, as well as site visits to farms to highlight innovative agricultural practices in the United States.

In South Africa, USTDA is expanding a highly successful energy efficiency initiative that has already led to the deployment of demand-side management upgrades to Durban's power system. Building on this success, USTDA announced funding for a Smart Grid technical workshop to be held later this year in South Africa, which will be followed with a reverse trade mission to support the implementation of such projects in South Africa.

Last, USTDA announced a reverse trade mission for East African Community (EAC) officials to meet with U.S. financial entities and U.S. companies to address the information and communication technology infrastructure requirements associated with trade-related financial transactions and regional integration. This visit follows a similar visit for Kenyan officials evaluating technology options to increase the security of their financial system.

Press Release from the U.S. Trade and Development Agency, June 10, 2011Footnote ⁹

USTDA signed a grant with the Angola Ministry of Transport to evaluate the technical, financial, environmental and other critical aspects of restoring 22 locomotives to operation in Angola. USTDA Deputy Director Peggy Philbin signed the grant on behalf of the United States at a grant signing at the African Growth and Opportunity Act (AGOA) Forum.

“We are very pleased to support Angola's rail sector,” stated Deputy Director Philbin. “U.S. companies are very interested in these opportunities and this grant will help to support our expanding trade relationship with Angola.”

The $410,000 grant was conferred at a transportation panel session moderated by USTDA Country Manager Michael DeRenzo. Before signing the grant, Ms. Teresa Vicente Muro, National Director, Office of Studies, Planning and Statistics, Ministry of Transport, highlighted Angola's plans to restore and expand Angola's railway infrastructure. Ms. Muro noted the importance of the USTDA grant in ensuring that there will be sufficient locomotive capacity to provide high quality, reliable services throughout the new railway infrastructure.

Angolan Deputy Minister of Trade Augusto Archer de Sousa Mangueira and U.S. Department of Transportation Deputy Assistant Secretary Susan McDermott witnessed the grant signing.

Angola reopened the Luanda-Malange railway line at the end of 2010, and expects to reopen the Benguela-Luau and Namibe-Menongue lines by the end of 2012. These lines will reconnect rural communities that have been cut off from urban centers for years. It is part of a larger plan to form a unified national railway system and to develop regional interconnections with the Democratic Republic of Congo, Namibia and Zambia.

The USTDA grant supports the theme of the AGOA Forum of enhancing trade through increased competitiveness, value addition and deeper regional integration. It will also serve to promote food security and economic growth. The USTDA grant forms part of an ever-growing portfolio of projects being developed under USTDA's African Trade Lanes Partnership. The Partnership aims to develop sub-Saharan Africa's most vital trade lanes and expand transportation networks to facilitate local, regional, and global trade.

The USTDA-funded feasibility study consultant will inspect the locomotives and make an assessment and plan for their potential refurbishment. The study will also support the participation of local railway workshops in the refurbishment process. This grant activity demonstrates the hallmark of USTDA, which is to provide foreign assistance that is of mutual economic benefit to both the United States and its partner countries.

The opportunity to conduct the USTDA-funded feasibility study will be competed on the Federal Business Opportunities (FBO) website. A link to the FBO announcement will be posted to USTDA's website at www.ustda.gov. Interested U.S. firms should submit proposals according to the instructions in the FBO announcement.

The Ministry of Transport will select the U.S. contractor that will complete the feasibility study.

Press Release from the Office of the U.S. Trade Representative, June 11, 2011Footnote ¹⁰

This week, during a trip to Lusaka, Zambia for the 2011 African Growth and Opportunity Act (AGOA) Forum, United States Trade Representative Ron Kirk announced a new Obama Administration initiative to build trade capacity called the African Competitiveness and Trade Expansion (ACTE) initiative. ACTE will provide $120 million over four years to build on the success of Africa's regional trade hubs and help African nations to realize AGOA's full potential.

“President Obama and I see extraordinary promise and potential in Africa,” said Ambassador Kirk. “AGOA has produced 11 years of positive results, but we understand that more needs to be done to tap into Africa's great potential. That is why I am pleased to announce this new investment today. ACTE is the next step in growing and expanding Africa's economic competitiveness.”

The announcement came during remarks at the Forum's Ministerial Opening Ceremony on Thursday, June 9. Present were Zambian President Rupiah Banda and Minister of Commerce, Trade and Industry Felix Mutati, Obama Administration officials and delegates from over 30 African countries. At the Ceremony, Ambassador Kirk delivered a special greeting from President Obama and highlighted AGOA's success in expanding exports from Africa to the U.S. He also announced the Obama Administration's intent to work with Congress to extend AGOA's third-country fabric provision through 2015. This important provision allows eligible AGOA countries to export apparel products made with textiles from foreign countries duty-free to the U.S. In addition, he noted that the Obama Administration will work with Congress towards a seamless renewal of AGOA beyond the current 2015 expiration.

During the Forum, Ambassador Kirk met with Secretary-General Dr. Richard Sezibera of the East-African Community (EAC) and trade ministers of the five EAC member countries. He discussed with them a new U.S.-EAC initiative focused on regional integration that will include as one of its core elements a regional investment treaty. He also held bilateral meetings with President Banda, Minister Mutati, Trade Minister of Ghana Hannah Tettah and Swaziland Senator and Minister of Commerce, Industry and Trade Jabulile Mashwama. Ambassador Kirk discussed with these leaders strategies for diversifying exports and specifically how AGOA can be used as part of that strategy.

While in Lusaka, Ambassador Kirk toured FreshPikt, a canning facility. While there, he participated in a signing ceremony to mark a joint venture between FreshPikt and American investor, PS International. PS International is in the process of purchasing a majority stake in FreshPikt, valued up to $30 million. This venture will expand the production of tomato paste for local and regional markets, and will eventually source all inputs from local Zambian farms. Currently, Fresh-Pikt-owned farms supply 50 percent of the factory's inputs, with the rest coming from nearly 1,200 small-scale Zambian farmers.

On Friday, June 10, Ambassador Kirk joined Secretary of State Hillary Clinton for the Ministerial Closing Ceremony of the Forum, followed by a dinner hosted by President Banda at the State House. At both events, he expressed his gratitude to President Banda and the Zambian government for welcoming him and the rest of the U.S. delegation to Zambia and for the excellent job Zambia did in hosting the 10th AGOA Forum.

He then concluded his trip by joining Secretary Clinton for a ceremony marking the launch of the first-ever Zambian-American Chamber of Commerce (AmCham). Among the more than 20 charter members of the chapter are Citibank, Cargill, Price Waterhouse Coopers, Freeport McMoran, Pioneer-Dupont, and Microsoft. This new AmCham will compliment the work of the newly-formed U.S.-Zambia Working Group on Bilateral Trade and AGOA, and encourage mutually beneficial U.S.-Zambia joint ventures.

“I want to commend the U.S. Embassy in Zambia for its work to coordinate the AmCham affiliation that makes this launch possible,” said Ambassador Kirk. “The new Zambian AmCham will be an advocate for increasing trade and investment in Zambia and encouraging economic growth.”

AGOA was enacted by Congress in 2000. It serves as a cornerstone for U.S. economic engagement with Sub-Saharan African nations and encourages the growth of their economies. AGOA allows duty-free access for African exports, covering ninety-eight percent of the products the 37 eligible African countries send to the U.S market.

This year marks the 10th annual meeting of the AGOA Forum, which brings together hundreds of U.S. and sub-Saharan African government officials, as well as the African and American private sector and members of the public. The 2011 Forum's theme was “Enhanced Trade through Increased Competitiveness, Value Addition and Deeper Regional Integration.” Ambassador Kirk and Secretary Clinton led the U.S. delegation to the Forum. Other representatives from the U.S. included senior officials from various federal government agencies including USTR, the Departments of State, Commerce, Treasury, Transportation and Agriculture, the U.S. Agency for International Development (USAID), the African Development Foundation and Millennium Challenge Corporation (MCC).

Press Release from the Office of the U.S. Trade Representative, June 22, 2011Footnote ¹¹

United States Trade Representative Ron Kirk met today with Indian Minister of Commerce and Industry Anand Sharma to discuss a range of bilateral and multilateral issues. Ambassador Kirk reaffirmed that the U.S.-India Trade Policy Forum (TPF) is the premier dialogue for addressing trade and investment issues between the two countries. The two agreed that the TPF should be strengthened to better facilitate resolution of outstanding issues of concern, and looked forward to a constructive meeting of the TPF later this year.

“The booming bilateral trade and investment flows between the United States and India support tens of thousands of critical jobs in both countries, and we know that will only grow significantly in the coming years.” Ambassador Kirk said. “However, to continue and grow our successes both India and the United States must take concrete steps to resolve long-standing market access and investment concerns.”

Additionally, Ambassador Kirk and Minister Sharma also discussed negotiations on a Bilateral Investment Treaty (BIT). Ambassador Kirk reiterated the interest of the United States in re-starting technical-level discussions between the two countries at the earliest opportunity to advance those negotiations. The two agreed that both countries should re-invigorate those negotiations by holding such discussions as soon as possible, ideally before the next meeting of the TPF.

On the World Trade Organization Doha Round, Ambassador Kirk and Minister Sharma recognized the challenges that remain in ongoing discussions but expressed their commitment to exploring options for productive next steps.

Press Release from the Office of the U.S. Trade Representative, June 28, 2011Footnote ¹²

United States Trade Representative Ron Kirk today welcomed the scheduling by Senate Finance Committee Chairman Max Baucus (D-Mont.) of informal or “mock” markups for three separate implementing bills for pending trade agreements between the United States and South Korea, between the United States and Colombia, and between the United States and Panama. Kirk also welcomed the inclusion of a robust renewal of Trade Adjustment Assistance (TAA) in the implementing bill for the U.S.-South Korea trade agreement, and measures renewing expired trade preference programs in the implementing bill for the U.S.-Colombia trade agreement.

“This is what we've been working toward. President Obama has made sure that these deals with South Korea, Colombia, and Panama are fairer for American workers and businesses, hold our partners accountable to keep their promises, and also reflect core American values on key issues like worker rights and protections. These agreements will help to boost U.S. exports and support tens of thousands of American jobs, and we are committed to their passage,” said Ambassador Kirk. “Advancing Trade Adjustment Assistance with these pending pacts is the right thing to do—because a balanced trade agenda recognizes the tough realities of trade for some Americans, even as we seize trade's opportunities to create jobs here at home. America can and must do both and we look forward to seeing these agreements taken up this week.”

In 2010 and 2011, the Obama Administration worked with South Korea, Colombia, and Panama to successfully address outstanding issues related to each of the three agreements. In particular, the Administration secured: greater U.S. access to the South Korean auto market; enhanced tax transparency and labor rights in Panama; and significantly increased labor rights and protections in Colombia. The Administration has been clear that ratified agreements will only enter into force if trading partners are meeting their commitments; for instance, Colombia must successfully implement key elements of the agreed Action Plan Related to Labor Rights before the U.S.-Colombia trade agreement will enter into force. Colombia has already met the milestones of the Action Plan that were slated for completion by June 15, 2011.

TAA provides training and support for American workers who are negatively affected by trade and is traditionally in place as trade agreements pass. It is designed to help workers, firms, farmers and fishermen transition to alternative employment. The Administration has said that movement forward on the three pending FTAs must be accompanied by a robust renewal of TAA consistent with the goals of the 2009 law that improved the scope and effectiveness of the program— for instance, covering Americans employed in the services sector in addition to U.S. manufacturing workers.

The Generalized System of Preferences and the Andean Trade Preferences Act expired in December 2010 and February 2011, respectively. These programs are designed to promote economic growth in the developing world by providing preferential duty-free entry for products from designated beneficiary countries and territories; they also support American jobs and improve American competitiveness since many American businesses use imports under these programs as inputs to manufacture goods in the United States.

The “mock markup” is an informal step traditionally taken by Congressional committees with jurisdiction over trade policy before formally considering legislation to implement a pending trade agreement. Committee members convene a public committee meeting to review the draft implementing bill for the agreement and to consider amendments. The protection afforded to a trade agreement under Trade Promotion Authority—which applies in the case of the Korea, Panama, and Colombia agreements—means that Congress may not amend the formal implementing bill the President submits, but proposed amendments approved at informal markups are considered by the Administration before the President submits the final implementing bill for each pact. Once legislation is formally submitted, each chamber of Congress has a prescribed period of time in which to hold an up-or-down vote on the trade agreement in question.

Press Release from the Department of the Treasury, June 28, 2011Footnote ¹³

Today, U.S. Secretary of the Treasury Timothy Geithner and Indian Finance Minister Pranab Mukherjee convened in Washington, D.C., the second ministerial meeting of the U.S.-India Economic and Financial Partnership. As two of the world's largest economies, the U.S.-India relationship offers enormous economic opportunities for Americans and Indians alike. Through stronger collaboration and coordination amongst our economic and financial policymakers, this Partnership has sought to deepen U.S.-India bilateral and multilateral engagement in order to fully capitalize on the wealth of economic opportunities between our two nations. The comprehensive inter-agency participation from both the United States and India, including Federal Reserve Chairman Bernanke and Reserve Bank of India Governor Subbarao, is the highest level economic and financial meeting ever between our two countries. This meeting clearly demonstrates the vision and commitment that the United States and India share in expanding economic opportunities for our citizens through greater trade and investment.

The U.S.-India economic relationship has made significant progress in recent years. Our private sectors share a common entrepreneurial spirit and belief in the pursuit of business innovation. Over the past decade, trade and investment between our two countries has expanded across a variety of industries and sectors. Between 2000 and 2010, Indian exports to the United States grew by nearly 180 percent and American exports to India increased over four times. Meanwhile, combined bilateral U.S.-India foreign direct investment grew by nearly 165 percent between 2005 and 2009. Despite this progress, and especially given the size of the two respective economies, we recognize that there remains untapped potential and opportunity to expand trade and investment linkages to the benefit of both countries.

In the meetings that we just concluded, we discussed the challenges that both economies face in ensuring a strong recovery and price stability in the short term, as well as the range of policies necessary to reach growth at our full potential domestically. The United States is committed to making the investments in technology, skills, and infrastructure necessary to maintain and enhance U.S. competitiveness in the global economy. India intends to take steps to marshal private and public saving to meet the infrastructure needs of a rapidly growing Indian economy. The United States and India will work together to expand trade and investment links between our two economies, and to develop and strengthen our financial systems. India and the United States will also work together in the G-20 on an effective mutual assessment process to bring about strong, sustained, and balanced global growth.

Leveraging our combined knowledge, experience, and shared interests, the two sides agreed to a robust agenda for the coming year that includes deeper engagement in the following areas within each pillar of the Partnership:

Macroeconomic challenges, including growth, unemployment, inflation, global liquidity, commodity prices, international capital flows and fiscal consolidation.

Financial sector reforms, including deepening of capital markets, financial inclusion, and ensuring the stability, transparency, and integrity of the financial system.

Infrastructure finance, including innovative strategies to mobilize capital for infrastructure development, and sharing best practices and building capacity for design and successful execution of Public Private Partnerships.

Since the April 2010 launch in Delhi, our Partnership has led to deeper institutional relationships and exchanges between U.S. and Indian economic and financial sector regulators—both of which have proven critical to technical cooperation, capacity building, and the removal of impediments to realizing our relationship's full economic potential.

Building on the success of the first year of the Partnership, we will continue to strengthen our economic and financial partnership in order to realize the full economic and strategic potential of the U.S.-India partnership to achieve maximum benefits for Americans and Indians.

Statement by Secretary of the Treasury Geithner, June 28, 2011Footnote ¹⁴