Remarks by Deputy U.S. Trade Representative Allgeier, July 8, 2009Footnote 1
Ambassador Peter Allgeier delivered these remarks in Geneva, Switzerland
Ambassador Allgeier. Thank you Mr. Chairman.
On behalf of the U.S. Government, I would like to welcome Minister of Labor Nadir and his delegation, including Ambassador Gomes, to Guyana's second Trade Policy Review. I would like to commend Minister Nadir for his opening statement, and for the documents that his government provided for this review, including the responses to our advance questions that we have just received. As always, we thank the WTO Secretariat for preparing us for this TPR, and for its comprehensive and informative report. The United States is also grateful to Ambassador Harris for acting as discussant for this review of Guyana's trade policy.
My Government considers Guyana to be a valued hemispheric partner. Since 2001, the United States and 15 countries of the Caribbean Community (CARICOM) have worked together on the “Third Border Initiative.” The “Initiative” provides a framework for structuring our engagement across the broad spectrum of matters that affect the prosperity and well being of the region.
As Guyana's number one trading partner, the United States' commercial relationship with that country remains vibrant and growing. Our total two-way goods trade during 2008 increased by nearly 40 percent from 2007. Though trade between our countries was down 3% in the first four months of 2009 (compared to 2008) we are hopeful that as the global economy recovers, our trading relationship will continue to expand. Approximately 15 percent of total imports from Guyana enter the United States duty free under the Caribbean Basin Initiative. We would encourage Guyana to take full advantage of this program by increasing its utilization rate to the greatest extent possible, and we're happy to work with you toward that objective.
We are pleased by the Secretariat's judgment that Guyana's economic performance has improved since its last Review in 2003, particularly as a result of the government's significant reform efforts in various areas. Nonetheless, although Guyana has taken measures to improve the country's business environment, challenges remain. In 2008, Guyana ranked 105th out of 181 economies analyzed in the World Bank's ease of doing business index. Further reforms are needed to promote investment, which the government views as critical to the country's economic development. The Secretariat says that such reforms “should include the expansion of the country's economic infrastructure …as well as the further strengthening of governance and the regulatory environment.” We agree that such improvements could well serve Guyana's trade and investment objectives.
We had hoped that the government would have made greater strides in implementing its WTO commitments since the 2003 TPR. The United States appreciates that Guyana's non-resident status makes its participation in the WTO more challenging. We also understand that aid for trade is a governmental priority that would help Guyana's efforts not only to diversify its economy but also its efforts to improve its implementation of its WTO commitments. The Secretariat's report states that Guyana's major reform of its taxation system represents one of the most significant developments during the period under review. We are curious as to how the 16% value added tax (VAT) that was introduced in 2007 is being applied in light of Guyana's WTO obligations. According to the report, some locally produced goods, but not the equivalent imported products, are zero-rated under the VAT. In addition, the environmental tax levied on non-returnable beverage containers is levied on imports only. A basic tenet of WTO membership is national treatment. We would welcome Guyana's explanation as to how these taxes are applied in a manner that is compatible with this core WTO principle.
Transparency, another core WTO tenet, needs much attention. Greater transparency in Guyana's SPS regime would, as the Secretariat observes, benefit both Guyana and its trading partners. But Guyana has not notified any SPS measures to the WTO. Most SPS measures, the Secretariat observes, are contained in the implementing regulations of relevant acts, “which are largely inaccessible.” Furthermore, many SPS measures pre-date the creation of the WTO and have not been revised to reflect Guyana's obligations as a WTO Member. Moreover, there is no procedure for removing measures that are no longer relevant. If we look at Guyana's customs procedures, the Secretariat says that Guyana has not submitted its legislation under Article 22 of the Customs Valuation Agreement, nor has it replied to the Checklist of Issues.
Similarly, greater transparency in the area of technical barriers to trade would be of mutual benefit both to Guyana and to its trading partners. We commend Guyana for notifying the 20 technical regulations in force. This notification represents a marked improvement from Guyana's previous Review, but we understand that some particularly important notifications have yet to be made-notably its measures to implement the TBT Agreement and its enquiry point. Furthermore, as Ambassador Harris pointed out, Guyana has not submitted any notifications regarding state trading enterprises within the meaning of Article XVII of the GATT 1994. Meanwhile, two state-owned companies have exclusive rights to import and export sugar and gold, respectively.
In Guyana's 2003 TPR, the United States questioned the government's automatic and non-automatic licensing requirements. We are disappointed to learn that Guyana's last notification of its replies to the questionnaire on import licensing procedures was in 2003. At the time of Guyana's previous Review, the licensing system was being reviewed and this was expected to result in the elimination of a number of products from the list. However, the Secretariat reports, no changes were made.
Turning to intellectual property rights, a key issue for Guyana's economic development, most of Guyana's intellectual property laws date back to the colonial period. During the review period, legislative reform has been limited. While it appears that a new law on geographical indications was adopted in 2005, this law has not yet been notified to the WTO.
The United States will continue to work with Guyana and the other CARICOM members to strengthen and deepen our relationship. We look forward to working with Guyana and other CARICOM members to achieve a balanced and ambitious result in the Doha negotiations with meaningful new market access for all. Such a result could further enhance opportunities for Guyana to broaden its exports and its export markets. The United States looks forward to working with Guyana toward bringing the round to a successful conclusion, and we wish you a successful TPR.
Thank you.
Press Release from the Office of the U.S. Trade Representative, July 10, 2009Footnote 2
The U.S. Department of Commerce today released data on U.S. international trade in goods and services through May 2009. The report indicated that the U.S. goods and services trade deficit fell to $26 billion in May, its lowest level in a decade. Exports of goods and services rose by 1.6% from April to May, however, for the first 5 months of 2009 remain nearly 19% lower than in the corresponding period of 2008. This decline reflects reduced demand in foreign markets for U.S. products, due to the global recession. The decline in U.S. imports, at over 28% for this year's first five months, was even greater than the drop in exports. The import decrease reflects both recession in the U.S. economy and sharply lower petroleum import prices so far this year, compared to last. The goods and services trade deficit through May 2009, on a balance-of-payments basis, has been cut slightly more than in half, compared to the first 5 months of 2008.
United States Trade Representative Ron Kirk issued the following statement on today's report:
“In the midst of financial uncertainty, it is critical that we increase exports of American goods and services to the world, which would help create more jobs for the American people.
“At this week's G8 Summit, President Obama and fellow world leaders have reaffirmed their commitment to keep global trade flowing and to reject protectionist policies.
“Under President Obama's leadership, USTR is working to open new markets to American goods and services, and to ensure that our trading partners play by the rules. We will also work to fulfill President Obama's commitment to reach a successful conclusion of the Doha Development Agenda.”
Press Release from the Office of the U.S. Trade Representative, July 13, 2009Footnote 3
United States Trade Representative Ron Kirk and European Union Trade Commissioner Catherine Ashton met today in Washington, D.C. to discuss bilateral trade relations. Building on the successful conclusion of an agreement on the longstanding beef hormone dispute on May 13, both sides agreed to intensify their bilateral engagement in order to find solutions that will bring meaningful economic benefits to workers, consumers, and businesses on both sides of the Atlantic. USTR Kirk and Commissioner Ashton issued the following statement:
At our first meeting in March, we pledged to redouble our efforts to resolve bilateral trade disagreements, some of which we have been discussing for many years. Through intensified bilateral engagement, we believe we can find solutions that bring meaningful economic benefits to stakeholders on both sides. We instructed our negotiators to identify and exploit new opportunities for market-opening and economic integration.
Two months ago we registered our first success under this effort to intensify bilateral engagement: the May U.S.-EU Memorandum of Understanding relating to the beef hormones dispute, which underscored that even disagreements that have persisted for many years can sometimes be set on a course towards resolution through pragmatic, problem-solving approaches.
In our meeting today we discussed potential ways forward on several other bilateral issues on which we are prepared to intensify our engagement in the coming weeks and months.
* We discussed steps that the United States and the EU could take to facilitate the lifting of EU emergency measures, last modified in 2008, requiring that all U.S. shipments of long-grain rice be tested prior to entering the EU for the trace presence of a biotech rice product approved in the United States but not approved in the EU. Discussions on this issue among European Commission and U.S. government agriculture and trade experts will continue in the coming weeks.
* We exchanged ideas on potential steps to address the WTO dispute on Section 110(5) of the U.S. Copyright Act (the so-called “Irish music” dispute), which relates to music licensing. We directed our staffs to explore new options on this dispute in the coming weeks.
* We agreed to initiate a practical dialogue on the trade implications of chemicals regulation in the United States and the EU. We directed our staffs to discuss the substantive agenda and format for this dialogue in the coming weeks.
* We discussed the European Commission Trade Barrier Regulation Report on online gambling and its implications for the WTO rights and obligations of the parties concerned.
We also discussed the continuing efforts of the EU and other WTO members to reach agreement on the terms of the EU's importation regime for bananas. We share an interest in resolving longstanding disputes on banana trade on terms acceptable to all concerned parties, and will work with all parties to this end.
We plan to monitor each of these issues closely, and we look forward to reviewing progress in addressing them in September. Our discussion also touched upon how better to cooperate in preventing disputes and on preparations for the fall meeting of the Transatlantic Economic Council.
Remarks by U.S. Trade Representative Kirk, July 16, 2009Footnote 4
Ambassador Ron Kirk delivered these remarks in Pittsburgh, PA
Ambassador Kirk. Good morning. I'm so pleased to be here today. I met with your CEO, John Surma, in Washington, DC last night, and I'm glad to see him here again today.
And I'm exceptionally pleased to get to meet all of you. I know this is one of the largest manufacturing plants in Pennsylvania—and one of the oldest. Steelworkers have been producing high-quality, American made products right here since 1875.
This plant had been open for 87 years when President John Kennedy stood on a wharf in New Orleans and gave a speech about trade. He told the crowd gathered there that America needed a new trade policy. His policy would support new opportunities for American businesses and, in turn, American workers. When that crowd heard the promise of new prosperity, they burst into cheers.
Less than one year later, President Kennedy had Congress's approval for the Trade Expansion Act of 1962. That led to the creation of the Office of the United States Trade Representative.
Kennedy sent the very first USTR, Christian Herter, to Geneva with one mission: to negotiate lower tariffs, so American businesses could compete overseas.
Forty-seven years later, America has another young president. And President Obama has made it clear: this administration shares Kennedy's goal, to create new jobs for American workers, and new markets for American businesses.
The global economy has gotten a lot more complicated over the last forty years. New trade agreements can still open markets to U.S. goods and services, and so they are an important part of our mission. But we have to do more than just pursue new trade deals. We must also insist on respect for our rights in the global trading system, if Americans are to reap the real benefits trade has to offer.
Right now, many Americans aren't sure those benefits exist.
A lot of what you hear about trade is negative. But the truth is, Americans benefit from trade every single day. The benefits are just so commonplace, we don't notice them.
We get produce at the grocery store year-round because we trade with countries that have different growing seasons. Many new items become more affordable in six months or a year, because the world's companies are competing for American customers.
Benefits like these are basic to our daily lives. But trade's rewards go far beyond what we can buy. The best benefits—better-paying jobs and economic growth— come when America sells to countries around the world.
Ninety-five percent of the world's consumers live outside the U.S. One of the easiest ways to grow American businesses and American jobs is to sell products to people outside our borders.
So we need access to foreign markets. And that is what good trade policy gets for America. Not just trade agreements with the WTO and with individual countries—but trade enforcement, too.
Realizing the potential benefits of trade pacts depends largely on whether we're willing and able to enforce those rules.
A trade agreement is a contract. Contracts tell us what's expected of us. Americans live up to contracts every day. When you buy a car, you get a car in exchange for making your monthly payment. That's keeping your end of the contract.
Our trading partners can sell their goods here. But in exchange, they must keep their end of our bargains.
I can tell you with no reservations: the Obama Administration is both willing and able to enforce our trade agreements. American workers deserve no less.
Today, on behalf of President Obama, I am here to affirm this administration's commitment to trade enforcement.
I am announcing several concrete new measures that will help to guarantee America's workers, businesses, and families a fair deal.
We will take new steps to protect the rights of American farmers and small business owners. We will hold our trading partners to their word on labor standards. And we will use work we're already doing to fight even harder for the men and women who fuel our economy and support their families.
That's the mission of USTR. We're here to help Americans grow their farms, build their businesses, and support their families through trade.
USTR will work with Congress and across the federal government to guarantee American families new opportunities. In particular, your representatives in Washington know how trade helps families in their states or districts, and how trade violations may hurt them. Theirs are critical voices in all our discussions at USTR.
We understand that Americans are worried: about their jobs, their businesses, their families. And they are worried that trade will take away new opportunities, not protect them or create new ones.
Americans have believed that our government hasn't done enough to protect our trade rights. And, while our trading partners largely respect our agreements, sometimes those rules are violated. That's why enforcement cannot be an afterthought. It needs to be a centerpiece of trade policy.
From day one, President Obama has focused on moving our nation toward economic recovery. Increased trade, coupled with strong enforcement, is an integral part of our plan.
In 2008, exports generated nearly two trillion dollars in income for American workers, farmers, ranchers, manufacturers, and producers… that's about one in every eight dollars Americans earned last year.
Exports of manufactured goods support six million American jobs. Millions more high-quality jobs depend in part, or entirely, upon trade in services and American intellectual property. And jobs supported by exports pay as much as 18 percent above the national average.
The Office of the United States Trade Representative is strengthening trade enforcement efforts because we will do everything we can to support those jobs and the workers who hold them.
President Obama and I believe that on a level playing field, Americans can compete in any sector—from manufacturing to services to agriculture. Just enforcing the rules on the books can win our workers and companies the benefits of trading as fully, fairly, and freely as our agreements allow.
Our new approach to enforcement is simple. We will deploy our resources more effectively to identify and solve problems at the source. But make no mistake: we will pursue legal remedies when other options are closed.
Last month, the United States filed suit at the World Trade Organization. We believe that China is unfairly restricting exports of raw materials like manganese and coke. In effect, this keeps the prices of these products lower for Chinese producers than the global market price.
This plant, and other steel, aluminum, and chemical plants across the country, need these materials to make products at a competitive price. We have begun consultations with China on this issue. We are prepared to take the case to the next step, if we do not reach an acceptable solution.
But we saw the problem, and we are responding for you. We're going to bat for American industrial workers and American steel, aluminum, and chemical producers. And we did not hesitate to do it.
Also this year, we addressed Canadian actions that undermined commitments they made in the Softwood Lumber Agreement. Most Americans don't know what that agreement does, and they don't care. But it's designed to help Americans whose livelihoods depend on a free and fair market for lumber products.
So when Canada violated its commitment, we acted and imposed tariffs on Canadian lumber shipments. We hope to work out our differences with the Canadians. But we will keep tariffs in place to give them an incentive to come back to the table.
Legal remedies are never our first choice. Not because they are not effective, but because right now, many American companies, and the people who work for them, can't afford to wait years for an international legal case. So we will emphasize vigorous oversight, frank dialogue, and negotiation as faster means of getting trade back on track.
In May, we reached an agreement with the European Commission. It was a major breakthrough in a 20-year dispute that locked many American cattle ranchers out of the European beef market.
That achievement is the result of a great deal of hard work alongside our partners at the Department of Agriculture, led by Secretary Tom Vilsack.
American ranchers, meat packers, and their employees will now be able to sell high-quality American beef at zero duty within the European Union. Those exports are expected to put $100 million in the pockets of American farmers and ranchers over the next three years.
As they do, we should see new jobs created among the more than one million ranches, farms, and businesses in America's beef industry.
Each one of those steps benefited American workers and American businesses. But they were only a start.
President Obama has committed to a new approach to trade—one that rejects protectionism and creates opportunities at home and abroad. He recognizes that trade is essential to America's prosperity and has the potential to lift up workers in America and around the world. The President will share more about our approach, but we already know that for trade to reach its full potential, we need to do a better job of enforcing our trade agreements.
So, in this administration, we will break down trade barriers that confront American workers and businesses.
First, we will build on what works. One of the best ways we guarantee America's trade rights is by consistently monitoring our partners' trade practices. If they know we are holding a magnifying glass up to their actions, they'll be less likely to break the rules. So, we will use that magnifying glass on behalf of more American businesses.
Some of our best results have come from two targeted enforcement tools: one to stop violations in telecommunications trade, and one called Special 301, that does the same for American intellectual property rights.
That last one is a technical name for something fairly basic: one of our biggest, strongest enforcement tools.
We use it to scour the globe for copycats and counterfeiters, people who steal America's greatest strength: the intellectual property that flows from the ideas of the American people. Imitation may be the sincerest form of flattery. But piracy isn't flattery—it's theft.
That theft lets foreign companies market counterfeit and potentially unsafe goods. And that costs U.S. software companies, music producers, and other creative and innovative enterprises billions of dollars.
So, we call out countries that provide safe havens for the theft of American intellectual property. And as a result, those countries can then miss out on new trade privileges or programs. We're going to apply the lessons of those successful programs to address other, equally important trade barriers. Two new, innovative tools will provide strong support for U.S. farmers, ranchers, and industry.
The first new tool will confront barriers that other countries raise to prevent our farmers and ranchers from marketing their products abroad. We must more strongly address sanitary and phytosanitary barriers, like the restrictive regulations some countries slapped on American pork because of the H1N1 flu scare. And we must address them across the board, as well as on a case by case basis. This will ensure our agricultural producers see their rights restored abroad, and their businesses saved here at home.
The second new tool will take on one of the biggest obstacles our manufacturers face: technical barriers to trade, such as technical regulations and standards that restrict U.S. exports of safe, high quality products. Now, we will seek out these barriers and tackle them head-on.
Next, we will leverage these new efforts and existing USTR work to better enforce America's rights around the world. The trade reports that go to Congress will be more than paperwork. We will use them in new ways to spur real actions with real impact for American workers and businesses.
Here's a concrete example. Secretary Gary Locke and I have agreed: When a USTR report identifies trade barriers threatening American jobs, our agencies will spring into action together.
USTR staff and Foreign Commercial Service officers in more than 75 major countries will team up.
They will talk to the right people and put pressure in the right places to break those barriers down.
And we will take similar action with colleagues from the Departments of State, Agriculture, and Treasury.
At the same time, these officers serving abroad will constantly feed real-time, on-the-ground information back to USTR. They will give us early warning about potential trade barriers we can nip in the bud rather than just report. This new approach can actually save American jobs that might otherwise be lost.
We will also continue to use trade remedies, like anti-dumping and anti-subsidy laws that the U.S. has on the books, and that are vitally important tools. We use them to correct distortions of trade—situations where the playing field is artificially tilted against us—and to ensure that the field stays level everywhere else.
Finally, we will hold our trading partners to their commitments on workers' rights.
Since 2001, the United States has entered into free trade agreements with 14 countries.
Every one of those agreements contains an obligation to enforce domestic labor laws, and to strive for labor standards that adhere to international norms. Now, we will insist that our trading partners hold up their end of the bargain. American workers should not be expected to compete against substandard labor practices.
To date, we have enforced our trading partners' labor obligations only on a complaint-driven basis. Well, no longer.
In close partnership with Labor Secretary Hilda Solis, Secretary of State Hillary Clinton, and their staffs, we will immediately identify and investigate labor violations…before they can disadvantage American workers.
Together, we will engage governments of countries that violate the rules, to restore workers' rights quickly. If those governments can't seem to fix their labor problems, we will help them find a way. And if they won't fix their labor problems, we will exercise our legal options.
These are the steps that USTR must take, and will take, to save American jobs and make trade work better for America's families.
The high-quality jobs that U.S. exporters can create here at home are our number one priority. Those jobs are the reason that USTR is on the case.
We can and we will recover from this recession. But we cannot take a single American job for granted. At USTR, that is our bottom line.
President Obama has united the full resources of our government on the road to recovery. We are walking a long road, but we are on the right path.
And the Office of the United States Trade Representative is doing our part to hasten that journey.
Press Release from the Office of the U.S. Trade Representative, July 22, 2009Footnote 5
United States Trade Representative Ron Kirk concluded his visit today to the 2009 Asia Pacific Economic Cooperation Forum's (APEC) Ministers Responsible for Trade Meeting from July 21 to 22 in Singapore.
At the forum, APEC ministers agreed to accelerate work to strengthen regional economic integration, including by breaking down barriers to trade in services and environmental goods and services. APEC Ministers will also seek to ensure that the benefits of globalization are spread more widely across societies and that growth strategies are consistent with sustainable development.
“APEC members understand the importance of trade perhaps better than any other regional grouping, as trade among the 21 APEC members represents 45 percent of global trade, and nearly 50 percent of global GDP,” said Ambassador Kirk in a briefing today held on-site with reporters. “APEC economies have the trading power and the collective potential to move global trade in the right directions—away from protectionism, toward more open markets, and toward a stronger rules-based system in which more countries are able to extend the benefits of trade for their workers, businesses—especially small businesses—and families.”
While in Singapore, Ambassador Kirk held a series of bilateral meetings with APEC counterparts from Korea, Singapore, China, Vietnam, Peru, Malaysia, and Canada, and a trilateral meeting with the Mexican and Canadian trade ministers as well.
Ambassador Kirk also held a briefing for US businesses and was a featured guest at the APEC business luncheon along with Singaporean Trade Minister Lim Hng Kiang and World Trade Organization Director-General Pascal Lamy.
Remarks by Deputy U.S. Trade Representative Allgeier, July 27, 2009Footnote 6
Ambassador Peter Allgeier delivered these remarks in Geneva, Switzerland
Ambassador Allgeier. Thank you, Chair.
The United States is pleased to welcome Minister of Commerce, Trade and Industry Felix Mutati, Ambassador Darlington Mwape, and the rest of the Zambian delegation to the third review of the trade policies and practices of Zambia. We would like to thank the Government of Zambia and the Secretariat for the excellent and comprehensive reports that they prepared for this review and that were circulated before this meeting. Finally, we would like to thank Ambassador Jean Feyder, as discussant, for providing a useful context for this review.
I would like to begin by acknowledging Zambia's impressive overall economic performance during most of this review period. We see the central role that copper plays in Zambia's economy and appreciate how Zambia's dependence on one commodity can have deleterious effects for the nation's well-being. But we also recognize that substantial debt relief along with the Zambian government's prudent macroeconomic policies and ongoing structural reforms, of which trade liberalization is an integral part, all contributed to Zambia's economic gains through mid-2008.
Unfortunately, as the Secretariat report points out, Zambia's dependence on mining has limited its progress in developing other sectors. We know that diversifying out of copper has been a longstanding objective of Zambian governments. Achieving that goal, despite the government's improved macroeconomic management, seems to have eluded Zambia. The Secretariat report notes slow progress in reducing the domestic cost of doing business and improving productivity (and therefore international competitiveness) in non-mining sectors to achieve diversification. Like all of you, we look forward to a short-lived global slowdown. But we agree that economic diversification remains key to Zambia's national growth and development. The Secretariat advises that, to realize its objectives, Zambia ought to, among other things, continue prudent macroeconomic management and ensure that revenues generated by the copper sector are used to build productive infrastructure as well as support for delivery of social services. We would consider this to be sound, worthwhile advice. In addition, we support the Zambian government's efforts to promote the agricultural sector as a critical aspect of its diversification plan and hope Zambia establishes WTO-consistent import and export policies to foster investment in this critical sector.
The United States enjoys a strong bilateral trade relationship with Zambia. Two-way United States-Zambian goods trade increased ten percent in 2008, totaling $130 million, with trade rising in both directions. Zambia is eligible for trade preferences under the African Growth and Opportunity Act (AGOA); and, in recent years, substantially all Zambian imports have entered the United States duty-free, either under AGOA, the Generalized System of Preferences (GSP), or zero-duty most-favored-nation provisions. Nevertheless, U.S imports of products from Zambia under AGOA and GSP have been modest and are comprised mostly of refined copper products. We want to work with the Zambian government to find ways to increase Zambia's utilization of AGOA and GSP trade preferences and to diversify its trade with the United States. The USAID-funded Southern Africa Global Competitiveness Hub is already working with the Zambian government and private sector to help maximize trade opportunities under AGOA.
In 2006, Zambia signed a two-year, $22.7 million threshold agreement with the Millennium Challenge Corporation (MCC) which included assistance— described in the Secretariat's report—for reducing barriers to trade and investment, including work to strengthen capacity in such areas as trade facilitation, SPS, and standards and to help meet other technical requirements. USAID would like to work with Zambia's government to complement the MCC threshold program with further assistance to enable the government to continue and deepen regulatory reforms. In December 2008, the MCC selected Zambia as eligible for large-scale assistance via an MCC compact. We urge the Zambian government, as it works with the MCC on a compact proposal, to consider including projects related to trade capacity-building and trade-related infrastructure as elements to help it diversify the economy.
The Secretariat reports that, since the last review in 2002, Zambia's trade policy has remained substantially unchanged. The Government of Zambia has introduced reforms and regulatory changes in some areas, such as government procurement, standards, and business procedures. We note, for example, the improvement over the last few years of Zambia's ranking in the World Bank's Doing Business indicators and are pleased to note that U.S. assistance, through the MCC, has assisted the Zambian government's efforts in this area.
The Secretariat has devoted a chapter of its report to the issue of aid for trade and has rightly acknowledged Zambia's active participation in the Task Force on the Integrated Framework. We read with interest that Zambia continues to benefit from a high level of assistance from its development partners and that Zambia is trying to integrate into its policymaking the findings of the Cabinet-approved 2005 Diagnostic Trade Integration Study. According to the Secretariat, many of the areas that the DTIS identified in its action matrix are being addressed by Zambia's bilateral and multilateral development partners. We would be interested in hearing from Zambia about its latest diversification plans.
We are pleased to note the extent to which the private sector has played a greater role in the nation's economy since the early 1990s. We encourage Zambia to work quickly to allow for improved productivity in the areas of agriculture, energy, and fixed-line telecommunication services so that privatization can be realized.
We urge the Government of Zambia to accelerate the pace of reform in order to reduce any trade restrictions and to increase the competitiveness of Zambian producers. For example, the Secretariat notes that Zambia's tariff structure includes a large overhang between WTO-bound and applied rates that “creates a degree of unpredictability for traders.” With the launch of the COMESA Customs Union and its multi-tier tariff structure capped at 25%, we see no compelling reason for maintaining bound tariffs at over 100% or for not binding a larger number of tariff lines at the lower COMESA rate.
The United States has submitted a few questions on tariff policies, customs valuation and intellectual property rights. We look forward to reviewing the Zambian government's responses.
Finally, I would like to commend Zambia's active participation in the Doha Development Agenda negotiations. Zambia has taken a leadership role among the LDCs in these negotiations. We look forward to continuing our work with Zambia to achieve a balanced and ambitious result in the Doha negotiations with meaningful new market access for all. Such a result could further enhance opportunities for Zambia to broaden its export base, its export markets and hence its opportunity to diversify. The United States looks forward to working with Zambia toward bringing the Doha Round to a conclusion, and we wish you a successful trade policy review.
Press Release from the Office of the U.S. Trade Representative, July 31, 2009Footnote 7
The United States is disappointed that China has decided to pursue its request for a panel in this matter.
We understand that a panel will be established today. Nonetheless, we do not agree with China's assertions that the measure at issue amounts to a discriminatory or protectionist measure.
As we have stated, nothing in the measure identified by China prevents the relevant U.S. authorities from continuing to work together to reach an objective, science-based response to China's request for a declaration of equivalence with respect to poultry products. These authorities are examining whether China's food safety system ensures that poultry products from China meet the U.S. level of protection, and they are proceeding in a way that both safeguards human life and health and is consistent with U.S. obligations under the WTO Agreement. We are confident that a panel will agree.
In addition, the United States does not agree with China's statement at the previous meeting of the DSB that this measure should forestall the normal business of trade between the United States and China. The United States and China have a broad and deep trade relationship, and we continue to work together closely on a bilateral and multilateral basis to resolve any problems that may arise. On occasion, both the United States and China have had recourse to dispute settlement under the DSU, as the WTO Agreement contemplates.
Although we are disappointed that China has chosen to pursue a panel in this matter, we are confident that this dispute can be resolved through the WTO dispute settlement system. Therefore, we see no reason that this or any other dispute should have repercussions on any other trade matters between the United States and China.
Finally, we also remain concerned with the way in which China has framed its panel request. In particular, we must point out again that the request appears both to include measures that were not consulted upon or do not exist and to make claims under a covered agreement pursuant to which consultations were neither requested nor held.
Remarks by U.S. Trade Representative Kirk, August 5, 2009Footnote 8
Ambassador Ron Kirk delivered these remarks in Nairobi, Kenya
Ambassador Kirk. Today is an important day in the U.S.-Mauritius economic relationship, and it comes at an important time. International trade and investment flows—which have grown consistently in recent years—are now challenged by the current global economic crisis.
A Bilateral Investment Treaty will promote investment and deepen the already strong economic ties between the United States and Mauritius. It will also reinforce the efforts of one of Africa's strongest performers on trade and investment liberalization, and economic reform.
Mauritius is a positive model of how trade and investment can fuel economic growth and development. The Government of Mauritius has an impressive track record on democracy, economic growth, openness to foreign direct investment, economic diversification, and the expansion of trade.
Mauritius has developed from a low-income, agriculturally based economy to a middle-income, diversified economy with growing industrial, financial, and tourist sectors. This remarkable achievement is a result of a series of economic development strategies that have focused on encouraging trade, economic reforms, and a strong financial, telecommunications, and services sector.
In the context of our two countries' bilateral relationship, Mauritius has undertaken significant efforts to diversify and increase its trade and investment with the United States. And Mauritius has succeeded in the development of new products and sectors, including diamond processing, aquaculture, sunglass and eyewear manufacturing, and jewelry production. These efforts have attracted significant investment. Since 2004, the U.S. direct investment position in Mauritius has increased nearly 700 percent.
Mauritius is a major beneficiary and a strong partner on AGOA. Indeed, Mauritius hosted the first AGOA Forum in Africa. AGOA has sparked significant investment in Mauritius, and Mauritian investors have made major AGOA-related investments throughout sub-Saharan Africa.
As many of you know, the United States and Mauritius signed a Trade and Investment Framework Agreement, or ‘TIFA’ in 2006. This serves as a mechanism for the United States and Mauritius to develop practical strategies on a wide range of trade and investment issues.
Today's announcement is, in part, the result of cooperation under the TIFA. It is under the TIFA that we began discussing the possibility of a BIT, and conducted several rounds of exploratory discussions and information exchanges. Today's launch is a result of the dedication and hard work of a good interagency team working on both sides.
I look forward to working very closely with the Government of Mauritius to ensure success. The BIT negotiations we launch today will serve as an important tool to promote investment and deepen our two countries' economic ties.
Press Release from the Office of the U.S. Trade Representative, August 8, 2009Footnote 9
United States Trade Representative Ron Kirk spoke to reporters in Addis Ababa today, at the conclusion of his official visit to Ethiopia. Ambassador Kirk has been in Africa since August 4. He participated in the 8th Annual African Growth and Opportunity Act Forum in Nairobi, Kenya, before traveling to Ethiopia. He will visit Senegal before returning home to the U.S. From Ambassador Kirk:
“I am here because Ethiopia is a key U.S trading partner in Africa. I am also here because Ethiopia's story is emblematic of U.S. engagement with all of Africa on trade and development.
“We have seen progress. Our countries have a robust trade relationship. AGOA is a huge part of that. Ethiopia is doing particularly well under AGOA. Exports more than doubled from 2007 to 2008. Ethiopia is diversifying exports. And we can see the fruits of U.S. efforts to build trade capacity here.
“Yet, challenges remain. We must continue to work together so that Ethiopian exporters can take full advantage of AGOA opportunities. We must work together to build trade capacity here and across sub-Saharan Africa. We must work to become full partners in the global trading system.
“The U.S. supports and encourages Ethiopia's work to accede to the WTO. We commend Ethiopia for completing its First Working Party on accession in May 2008. We encourage Ethiopia to keep working at it. America will continue to provide technical assistance.
“We also encourage further economic reforms. Reforms will encourage investment, trade, and economic growth, and make Ethiopia more competitive.”
Press Release from the Office of the U.S. Trade Representative, August 12, 2009Footnote 10
U.S. Trade Representative Ron Kirk welcomed the results of a World Trade Organization (WTO) dispute settlement panel report made public today. The report found that major Chinese restrictions on the importation and distribution of copyright-intensive products such as theatrical films, DVDs, music, books and journals are inconsistent with China's WTO obligations.
The WTO panel called on China to come into compliance with its obligations to allow U.S. companies to import these products into China and to eliminate the discriminatory requirements faced by imported products and their U.S. distributors in China.
“Today, a WTO panel handed a significant victory to America's creative industries,” said Ambassador Kirk. “These findings are an important step toward ensuring market access for legitimate U.S. products in the Chinese market, as well as ensuring market access for U.S. exporters and distributors of those products. We will work tirelessly so that American companies and workers can fully realize the market opening benefits that this decision signals.”
The United States initiated the WTO dispute process against China because of serious concerns about shortcomings in China's legal regime governing the importation and distribution of copyright-intensive products. After unsuccessful consultations, the United States moved to institute panel proceedings. The result of those proceedings, released in today's WTO report, clearly addresses these shortcomings.
In addition to addressing discriminatory requirements on American importers and distributors, the findings also call on China to allow U.S. companies to partner with Chinese enterprises in joint ventures to distribute sound recordings over the Internet.
Ambassador Kirk noted, “This decision promises to level the playing field for American companies working to distribute high-quality entertainment products in China, so that legitimate American products can get to market and beat out the pirates. To me, that is a clear win. We believe that this report will help pave the way toward more open trade between China and America.”
Press Release from the Office of the U.S. Trade Representative, August 12, 2009Footnote 11
United States Trade Representative Ron Kirk has concluded his two-day visit to Dakar, Senegal. This was Ambassador Kirk's first time visiting Dakar, Senegal as the United States Trade Representative and it gave him an opportunity to discuss ways to improve the US.- Senegal trading relationship.
While in Dakar, Ambassador Kirk met with Prime Minister Ndene Ndiaye and Trade Minister Amadou Niang as well as other government and private sector representatives with whom he discussed a range of issues such as trade under AGOA, the Doha negotiations and efforts the government of Senegal is taking to improve the business environment and attract investment. He also met with Millennium Challenge Account (MCA) staff about a potential U.S.-funded MCA compact that will have an impact on trade and the people of Senegal.
As well, Ambassador Kirk met with Senegalese producers and exporters to discuss the successes and challenges they face exporting to the United States under AGOA. Additionally, he toured the Port of Dakar and was able to see the advances made at the port to promote Senegalese and regional trade.
Before leaving Dakar, Ambassador Kirk visited Goree Island, a historical site, and talked to Mayor Augustin Senghor about the importance of tourism and trade.
“Trade continues to play an important role in economic growth and development in the United States and Africa,” said Ambassador Kirk. “I have spent the past few days in Dakar because the Obama Administration is very interested in enhancing the U.S.-Senegal trade investment relationship, including greater trade under AGOA. Senegal's exports to the U.S. are modest but we recognize the potential for Senegal to increase its AGOA exports and to become a hub for trade between the United States and countries in West Africa.”
Remarks by U.S. Trade Representative Marantis, August 12, 2009Footnote 12
Ambassador Demetrius Marantis delivered these remarks in New Delhi, India
Ambassador Marantis. I had a very thought-provoking discussion with Tarun Das and a visiting CEOs delegation in Washington last month, and I'm delighted to continue that discussion today.
We are meeting at a time of historic opportunity—in each of our countries record numbers of voters recently cast their ballots in favor of new ideas and new leaders. But we also meet at a time of historic challenges—those new leaders, and all of us here today, are working to overcome a global recession that has proved catastrophic for too many families in both our countries.
But in the face of those challenges, America and India are working closely together. Because of that work, our economies are more resilient and our commercial ties are stronger than ever.
We need to build on that work to create incentives that will stimulate trade and investment flows. Currently, India is our 17th largest trade partner. At USTR, our goal is to raise that ranking to the top ten—and it's doable.
While I'm here this week, the first round of bilateral investment treaty negotiations between our two governments is taking place. As U.S. negotiators sit down to talk with India's, one thing is certain: India's investors and companies have as much at stake, and as much to gain, as America's investors and companies do.
In the last three years, our bilateral trade volume doubled. And it is extraordinary to see the ever-increasing role of India's companies—the large conglomerates, entrepreneurs and investors—in the U.S. economy.
India's companies are making a tremendous impact in the U.S. market. According to CII's report on the “Contribution of Indian Industry to the U.S. Economy,” they invested a total of $105 billion from 2004 to 2007, directly creating 110,000 jobs.
I don't have with me photographs of the U.S. workers India's companies employ, or the families they support, but I can give you a snapshot of the opportunities Indian-American trade is creating for those families.
According to CII's report, over the last three years, key sectors that have created jobs in the United States include civil aviation, automotive, gems and jewelry and pharmaceuticals. I would add defense to that.
Job creation in the U.S. as a result of trade with India follows many paths.
CII cites the direct creation of 8,300 jobs in the aviation sector. We know that when India acquires U.S. goods such as Boeing aircraft (over $10 billion dollars worth in recent years), those planes are being built in U.S. plants by American hands.
Similar stories for different reasons come in the other sectors. Retail jobs are enabled in the U.S. through the sourcing of jewelry from India. Indian pharmaceutical firms are setting up offices and operations in the U.S., hiring Americans.
And, India's defense sector, an area in which the United States was essentially a non-player until 8 years ago, is now another driver of trade and jobs, with companies such as Lockheed Martin, Raytheon and Boeing supplying the Government of India with sophisticated defense equipment.
On the other side of the ledger, so to speak, is the reality that India has also benefited enormously from trade and investment with the United States.
The United States is India's largest trading partner, and a top consumer, for example, of India's agricultural, jewelry, and textiles exports. These create jobs in the thousands, especially among farmers and small businesses who are most in need of economic empowerment in India.
And, that doesn't even include the jobs that have been created through India-U.S. ties in the IT sector. The success of this sector in India has helped foster a new sense in India that Indians can accomplish anything. But, it was India's ties with the U.S. that helped to propel that sector.
For all the alleged divides between the U.S. and India over trade-related liberalization, it is critical that people in India not forget that one of the manifestations of the shared economic interests of the United States and India is the fact that the United States is India's most important export market, and that those exports have and still are creating jobs in India, thus demonstrating the value of trade in general and trade with the United States in particular.
All this is simply to say to you that that trade and investment with India is a two-way street and it needs to grow in both directions. Politics aside, there is ample evidence that both sides are benefiting in the trade arena in this new era and those benefits can and should grow through opening markets and opportunities for investment.
Over the course of this week, I'll be sharing our bilateral success story with leaders in Mumbai and Delhi, because our successes to date are powerful arguments for more engagement, more trade, and more investment. As I sit down with individual companies and business groups, I will be seeking their thoughts on what the U.S. and Indian governments can do to create greater opportunities for trade and investment, just as I look forward to hearing your thoughts and ideas today.
I will be sharing those ideas with your Government, most notably with Commerce Secretary, my direct counterpart at the Indo-U.S. Trade Policy Forum.
The Trade Policy Forum has been—and will continue to be—an important dialogue on trade and investment matters. Because of conversations held at the Forum, Indian consumers can purchase American apples and almonds, and American consumers can savor Indian mangoes. These are successes to be celebrated, but we must continue to expand our areas of cooperation.
I look forward to Ambassador Kirk and Minister Sharma convening a TPF in the fall.
And I'd like to thank CII for its continued counsel to the Private Sector Advisory Group to the Trade Policy Forum. The group was created in 2007 to give the Trade Policy Forum strategic direction in its deliberations on trade policy issues, and your contributions to that end have been extremely helpful.
We have made great progress in the United States.-India relationship, and we are committed to continuing that progress.
As our policies develop, it is critical that U.S. and Indian companies are part of the dialogue. Thank you all for joining that dialogue today. I welcome your insights and questions.
Press Release from the Office of the U.S. Trade Representative, August 28, 2009Footnote 13
United States Trade Representative Ron Kirk commented today on China's reports to U.S. officials that it is eliminating, effective September 1, the discriminatory charges it has been imposing on imported auto parts. The necessary amendments to China's laws are expected to be published shortly. China's announcement comes after the World Trade Organization (WTO) agreed with the United States that these charges were contrary to WTO rules.
“We are pleased that China has informed us that it is eliminating the additional charges on imported auto parts in response to the WTO ruling. We look forward to carefully reviewing the changes announced by China,” Ambassador Kirk said. “Ending these charges will help ensure a level playing field for the high quality auto parts made in America, and is an important example of the importance of enforcing our international trade agreement rights.”
Press Release from the Office of the U.S. Trade Representative, August 31, 2009Footnote 14
The Office of the United States Trade Representative issued a public statement today following issuance of awards by arbitrators in the Brazil Cotton dispute in the arbitrations over Brazil's request for authorization to suspend trade concessions against the United States.
The arbitration followed a 2008 WTO ruling that the United States had not complied with the original findings in the Cotton dispute.
Brazil is authorized to suspend concessions (“impose countermeasures”) against U.S. trade. The total amount may vary from year to year because part of the award is based on a detailed formula set out by the Arbitrators. For the time periods analyzed by the Arbitrators, including fiscal year 2006 for the part based on the formula, the amount would be $294.7 million.
In response to Brazil's claim that it had an unconditional ability to suspend concessions against U.S. intellectual property and services, so-called “cross-sectoral” countermeasures, the Arbitrators denied Brazil's claim. Furthermore, the Arbitrators found that Brazil may not impose cross-sectoral countermeasures unless the total amount of countermeasures for a particular year exceeds a threshold calculated for that year based on a subset of Brazil's imports from the United States. For 2007, that threshold was $409.7 million.
USTR spokeswoman Carol Guthrie issued the following statement:
“While we remain disappointed with the outcome of this dispute, we are pleased that the Arbitrators awarded Brazil far below the amount of countermeasures it asked for. In its first requests for countermeasures in the Cotton dispute, Brazil asked for more than $4 billion in annual countermeasures. During the arbitration proceedings, Brazil argued for more than $2 billion annually. Further, we are grateful that the Arbitrators denied Brazil's request for unlimited ability to suspend concessions on intellectual property or services. And we are pleased that the Arbitrators denied Brazil's request for an additional one-time $350 million in countermeasures in connection with the repealed Step 2 payment program for cotton.
“At this time, we do not know when or if Brazil will move to obtain final authorization to suspend concessions or when or if Brazil would act on any such authorization.
“The Administration will be actively consulting within the U.S. Government and with stakeholders on how to move forward.”
Excerpts of Remarks by U.S. Trade Representative Kirk, September 4, 2009Footnote 15
Ambassador Ron Kirk delivered these remarks in New Delhi, India
Introductory Remarks Omitted
Ambassador Kirk. This has been my first trip to India. It has been way too fast, but I think it has been wonderfully productive as we have had an opportunity to participate in what I hope will be an important step toward moving the Doha Round toward a successful conclusion sometime in 2010. It has certainly met our objective in creating a renewed sense of energy for the Doha Round of talks.
All of us came to Delhi with the common goal of advancing these important rounds, but I came with an equally clear message as well. That the United States is ready to follow up on the stated objective of our President, Barack Obama, to work collaboratively toward a path that would put Doha on the sure road to success. We believe it's time for sustained bilateral talks along with our multilateral work in Geneva to move the Doha talks into an end game. In these two short days we've seen various nations engage and express their readiness and in some cases their reservations about sitting down and truly beginning the difficult work that lies ahead.
Key nations have repeatedly expressed a commitment to reaching an agreement. The United States believes that now is the time to act on those commitments. This fall can be a critical window for meaningful progress on our Doha negotiations, but we need to make progress now to ensure the opportunity for a successful conclusion in 2010.
We can also build on the multilateral progress that has been made thus far, but we believe in order to get to a successful conclusion we must reinvigorate the process with sustained bilateral engagement in order to go further. This will provide the needed clarity for many nations in order to make a determination of the gains and the sacrifices that each of us will inevitably be made in order to have Doha come to a successful conclusion.
We must fill existing gaps on new, meaningful market openings for all countries involved as well as create economic opportunities worldwide.
In my comments to the group yesterday I expressed the desire that should we come to a successful conclusion of Doha it not simply be the capstone of the largest and the last multilateral agreement of the 20th Century, but it truly be a strong economic tool to govern trade and economic development globally for the next 25-30 years.
In that vein, the United States again is ready to begin, sit down with our partners for sustained talks, and I'm especially pleased that earlier yesterday President Obama announced his intent to nominate Michael Punk to serve as our United States Trade Representative, as our Ambassador and Permanent Representative to the WTO in Geneva. Michael is uniquely suited to lead our very strong Geneva team that is already in place, having worked previously within the United States Trade Representatives' Office, having served as a trade policy analyst during the Clinton administration, and served as Trade Counsel on the staff of the Senate Finance Committee. We very much look forward to working with Michael and having the opportunity to introduce him to our friends and colleagues in Geneva.
In the same way I have urged Ministers here this week to look forward to working with Michael and to be ready to engage the United States. We are respectfully urging his swift movement and confirmation by the United States Senate. In that same vein, I urge my colleagues here in Geneva to move as quickly as well. It is well past the time for us to harness the potential of Doha as a strong tool not only to uplift those least developed countries, but as a part of the global response to this economic crisis.
I appreciate your patience. I look forward to entertaining your questions. Thank you.
Q. It seems the United States has some new ideas on taking the multilateral process forward which includes bilateral engagements by which you can explore how the negotiations can be fast tracked. But it seems that there has been some opposition to these new ideas. So in light of these oppositions, how do you think the U.S., what will be the U.S. strategy on this front now?
Ambassador Kirk. Rich, the United States feels very strongly that in order for us to achieve our common objective which is a successful conclusion of the Doha Round, and not only a successful conclusion, but one that is true to the original intent of Doha, to be a true development round. To help those least developed countries gain prominence and create new economies. We have to think differently about how we get there. I understand that this is a horribly complex process any time you're trying to harmonize the interests of 140-plus different countries, all with extraordinarily different economies and political dynamics, but if we are committed to that goal we should be willing, we believe, to explore any avenue possible to get us there.
An extraordinary amount of good work and effort has gone into bringing us to this point, but the reality is we've now had three failed successive rounds to reach a conclusion. We believe that creates a fairly obvious imperative to look at the alternatives, inclusive of continuing our multilateral engagement, but specifically the sustained bilateral types of negotiations that will ring the type of clarity we think that's necessary for all of the parties to have a clearer picture of what we can gain from Doha. If we do that, and I think that was amplified somewhat here today. I think the reservations of some of those nations that have been reluctant to engage in those sort of talks perhaps can be dealt with.
Q. We had the opportunity to talk to the Ministers from the developing countries and when we asked them what is your expectations from the rich and developed countries, I thought because everybody is saying that came to see this round successfully concluded, but there is a hitch. According to them, the rich nations are paying what is called lip service and not offering much specific on the table. On the contrary they are raising new demands from the developing countries, industrial goods, severance and sectorily, making it mandatory. Those kind of new demands are coming on top of paying only lip service. This is the kind of comments from the developing countries. Your response, please.
Ambassador Kirk. I can honestly say that there was very little of that type of expression at least in our public meetings, so I'm reluctant to respond without knowing who in specific may have made that type of a statement.
Let me say this. I can't speak for any of the other developed countries. The United States has always embraced the special role that we play, being as gifted as we have been as a country with a strong economy that some would argue has been the envy of the world, certainly for the last century, and our unique ability to use our development resources as a way to help uplift some of the least developed countries in the world.
I would challenge you to examine our track record in terms of our engagement with the least developed countries through our generalized system of preferences which allows most of those countries to export their goods to the United States duty free as it is, with rare exceptions, and our track record in terms of contributing to aid for trade and other measures, that our record is one that I'm proud of.
Now, I still believe that the Doha Round will have failed if all we do is examine it in terms of increased market access through traditional markets. Every economist in the world has told us that almost 60 percent of the world's growth over the next 15 to 25 years is going to come from these emerging advanced developing countries like India, China, Brazil, South Africa, and the ASEAN region. It is just as important, I believe, for those least developed countries to have an opportunity to expand trade with these countries as it is the United States. And the Doha Round, when I said earlier that I think we will make a much greater contribution to the world's economy if Doha is at least as forward looking as it is backward looking.
So I believe bringing all of the parties to the table, including these advanced developing economies, is going to be critical to helping us gain the clarity, find the contributions necessary to bring Doha to a conclusion.
Let me add one thing and then I'll move on.
President Obama has said time and time again, we do not look to the least developed countries to provide the sort of clarity and fill in the gaps that we think exist in terms of market access to bring Doha to the table. But we do believe that the advanced developing economies that will play an increasing role in the world's global economic health as well as the leadership of the world trading community have an opportunity to step up to the plate and help us fit and bridge this gap.
Q. I'd like to know whether the administration plans to go to Congress to ask for new Fast Track authority to negotiate, and if the answer is yes, when will you do that? If the answer is no, why not?
Ambassador Kirk. Jennifer, at an appropriate time, and commencement, we believe, when we have something to report to Congress, and we can give them the clarity that Congress deserves and the American public deserves, President Obama and I will seek authority from the appropriate congressional committees to move Doha forward.
Q. From whatever commitments you made on farm subsidies as of now on the table, are you willing to make more concessions? The reason why I ask you this, is we were speaking to the Foreign Minister of Brazil. He's flatly refused any concessions on his part. The Indian Minister has also made it clear that as far as he is concerned the end game is no way near reaching. So are you willing to make any further concessions on farm subsidies?
Ambassador Kirk. First of all, whatever concessions we made will be made in those sustained bilateral talks.
What I would say to you is we believe that is the best fora for nations to move beyond public posturing into the real hardline negotiations that are necessary in order to bring Doha to a conclusion.
Now I would say to you as I've said to my colleagues. If we all maintain the current posture that we have right now, that every nation says I'm not willing to move any further and I won't give up anything else, then there will not be a successful conclusion of the Doha Round. I don't think that's going to come as a surprise to anyone. All of us, but particularly those countries that have the ability to make a contribution to the world's economy, including the advanced developing economies of India, Brazil, China, and South Africa, have I think an added responsibility to make the tough decisions in order to bring Doha to a successful conclusion.
But I believe, I'm going to take everyone at their word that we're negotiating in good faith, which the United States will do.
Q. A lot of countries called in their statements yesterday to resume from the last days of play, and many of them talked about going back to discussions, looking at the text of December 2008 on tariff cuts in agriculture and NAMA. The U.S. said that, Brazil, many countries have said that. Can you talk about where the U.S. stands on that?
Do they stand by subsidy cuts envisioned for U.S.-EU in those texts at that time?
Ambassador Kirk. Without getting into the specifics, what we have said and what we think makes sense is, in response to the first question, obviously more is required to get us to a successful conclusion or else Doha would have succeeded in 2008 or 2007, 2005. What we have not asked for is an abandonment of all of the hard work that's gone before. We think we can build on the existing text, but obviously gaps need to be filled in and more needs to be added to them. There are some countries that believe that the 2008 text are inviolate, but the reality is they're called drafts for a reason, is that they have not been completed. What we think is required is just the logical work needed to fill in those gaps and that can be done through the sustained not only bilateral but multilateral fora.
Q. You have categorized India as an advanced emerging economy and with that you respect more from India than—But the truth is that India is what economists call a dual economy. We haven industry, we have big cities, but yet the vast majority of the population is engaged is subsistence farming. That is where the flexibility was required.
There is also this development, we can't really say that India is an advanced economy for that part of our population. So is the U.S. willing to concede some flexibility on that score?
Ambassador Kirk. India is a marvelously challenged country for the reasons that you explained, but it also I think necessitates us negotiating in Doha across all of the lines available. That is why the Doha negotiations have been governed by an overriding principle that nothing is settled until everything's settled. And although Doha is principally dealing with agriculture and non-agriculture, we also have the opportunity in negotiating in services and rules, in trade facilitation, to give countries other ways to meet some of those obligations while at the same time recognizing the challenges that not only India but many countries have of having these sort of dual economies. But that best can occur within we think not only the multilateral environment in Geneva, but also the very challenged bilateral sustained talks as well.
Q. You just said you should move away from public posturing and focus on sustained bilateral talks. Can you give us some specific issues which came up in yesterday's bilateral with India?
And secondly, given the global slowdown, is protectionism high on the agenda?
Ambassador Kirk. Well, on the bilateral relationship, one of the reasons, one of several reasons that motivated my coming here was the excitement that many of us feel with the change in tenor and tone after the elections in India, which I have to tell you from just a purely selfish standpoint of someone who was raised in the South and is fanatic about voting, your elections were a marvelous commentary on the power of a democracy. Just absolutely splendid. But with the new cabinet, new direction provided by Prime Minister Singh and Minister Sharma, and our leadership, we think there is a marvelous opportunity to recast the relationship between the United States and India.
Secondly, I will be back to India in almost less than a month in which we're going to engage much more thoughtfully on our bilateral relationships, so I'll be here for three or four days with Minister Sharma. If you would, I'll defer getting into some of those bilateral issues until that time.
Q. [Inaudible]?
Ambassador Kirk. We do not as yet have a Free Trade Agreement with India, but we have a Trade Policy Framework Agreement that's going to broadly look at all of the areas that we might be able to expand on our relationships.
For all of the strength of the U.S.-Indian relationship commercially, it has been fairly benign. I think we all agree that we can be much more robust than that. We have a Business Advisory Council. Part of our coming together the next month will be to say how do we really reengage these mechanisms? We have a Bilateral Investment Treaty. We had a very successful first meeting on that last month.
My coming back will give us a chance to slow down, take a holistic look, and say where do we have the greatest opportunity to move the relationship forward, and we're very much looking forward to that.
Your question about protection, I think on balance that all countries have followed in a way that was more real than optical the commitment made by our leaders initially at the G20 Summit in Washington last December, then reaffirmed in London and Italy, that we would not engage in protectionism as our world leaders I think have embraced and recognized that over the last 60 years trade liberalization has very much led to increasing quality of life and helping to expand economies of all the world.
If there is any underlying lesson of this current economic downturn, it's just how much the world is interconnected now. And as trade has declined to levels as low as it's been since World War II, we've seen the negative impact that it's had on all our economies.
I believe that countries have wisely taken steps to shore up their own economies, just as we've done in the United States. But for the most part the WTO, which has studied this, has reached the conclusion that protectionism has been kept at a minimum. And hopefully if we can begin to see maybe this current crisis bottom out, that will provide more stability and more strength for those of us who want to make sure that we are looking to liberalize trade rather than move away from it.
Q. Ambassador Kirk, you just mentioned Free Trade Agreement. Is there a chance of a limited Free Trade Agreement between the U.S. and India?
Ambassador Kirk. I don't even want to start down that road until we have an opportunity to meet. There are a number of steps that we take before we get there. I would tell you that India—
Q. But is that the plan in the future?
Ambassador Kirk. The whole purpose of us coming back and using the Trade Policy Framework Agreement is to map out a roadmap for our increased commercial relationships, so let me not get ahead of that process.
Q. Many are saying that this is the end game that we are reaching, so do we see a conclusion coming in 2010?
Ambassador Kirk. Well, I don't know that we're at the end game yet, but at least we are committed to engaging in the sort of negotiations across all the lines—agriculture, NAMA, services, trade facilitation, multilaterally sustained, that would allow us to be there.
Our leaders in London and in Akila have set as a stretch goal perhaps a conclusion of the Doha round by the year 2010. For those of my colleagues that have lived through the Uruguay Round and others, have helped us to practically understand what has to happen to make that case.
I would say to you parenthetically that obviously you can look at me when I stand up and tell I'm not a marathoner, but for my friends who do run they will tell you that the toughest part of a marathon is the last two miles.
I believe that a lot of hard work has to be done, but if countries do come to the table with an open mind and a willingness to negotiate in good faith, our hope is the outline that we've put out coming out of Delhi will put us on a path that we could have a successful conclusion. But nothing is certain.
Substance will drive this process, not setting deadlines and timelines.
Q. I just want to get your sense of the domestic reception for a free trade deal in the United States. Do you believe it's tougher to get a deal passed through Congress now rather than when the group got close in July of 2008? Have the contours of the recession changed the domestic reception for a deal?
Ambassador Kirk. Well, coming from Texas I get to use my stock answer. That's not a question, that's an answer.
Listen, global trade is always a tough sell against very difficult economic environments. When countries and political leaders are principally focused on how to restore their economic health and reduce unemployment and put people back to work, it's oftentimes easier to look inward than it is to look outward.
I am ever the optimist and happen to believe that the actual recent decline in global trade and the commensurate role that has played in the economic crisis sort of helps us make the case for the strength of global trade as a way to expand and create jobs.
Now what I would say to you is this. President Obama and I firmly believe that the American public will embrace and support a trade policy and trade agreements that help us grow and sustain America's economy, that creates meaningful market access which I translate into good jobs, by creating new opportunities around the world. And if we have trade agreements that we can argue to the American public do that, and they also embrace our feelings as it relates to the rights and treatment of workers and protection of the environment, we believe the public and our Congress will support that. And one of the reasons that we have pressed so strongly for a different approach to the Doha Agreement, and I think you would know, I wouldn't have to tell you that, is that there are very few people in America either in Congress or the traditional constituencies that support Free Trade Agreements, that believe that Doha currently meets those objectives. But we think it can be constructed so that it would.
Q. Many of the delegates have said that the draft text that was issued in December should be the basis of further negotiation. What's your take on that?
Ambassador Kirk. Let me make sure that I expressed myself correctly earlier.
We believe that we should build on all of the good work that's been done thus far. But a good deal of honesty needs to be injected into this process that more needs to be done to complete that.
The draft texts were just that, they were drafts. Not everyone agreed with them. There are still gaps in those texts. I don't want to get hyper technical. There is language that's bracketed, meaning that either it's got to be changed—
Now we aren't arguing that you throw that away, but we do think there needs to be an honest recognition that more needs to be done to fill in those gaps to bring them to closure. And that in addition to that to help countries like India and South Africa that are challenged with these dual economies, one of the ways that we can help gain greater clarity and create additional market access is to move forward simultaneously on our negotiations as it relates to services and rules and trade facilitation as well.
Q. India has said that [inaudible] held talks on services and rules horizontally with agriculture and NAMA. What's your take? Though there is no consensus on this on non-developing countries.
Ambassador Kirk. Forgive me. You'll have to, I didn't get all of your question. Can you repeat it just a little more slowly for me?
Q. India has suggested that we should horizontally move and hold talks on service and rules. What's your view on that?
Ambassador Kirk. I think it's critically, again, the point the gentleman made about the challenge of India having two extraordinarily different economies and difficulty for countries that still have so many people engaged in subsistence farming to make concessions, for example, in agriculture. In our mind in the United States, that makes an obvious case for proceeding on the same path with more intensified talks in the non-agriculture sectors. But particularly in services and trade facilitation. There is an extraordinary amount of gains to be made through rules enhancement, trade facilitation, and rules. We believe that we should embrace the equal Doha mandate not only being a development trend, but that nothing would be concluded until it's all concluded, so let's get going in all areas. Agriculture, NAMA, services. We feel very strongly that's the appropriate path.
Q. Do you see the present global scenario as a worst case scenario for trade? And also how much role would climate change issues have to play in further negotiations?
Ambassador Kirk: Why is it whenever they say last question you always get the most difficult one?
Are you all just trained to do that?
Let me say this. I think climate change, the United States, I am extraordinarily proud of the effort that our President has made not only through our stimulus bill but in advocating for a sensible approach to climate change through our Congress, and we still believe the best venue to address that is through an internationally recognized treaty to deal with that, so we want to do that first.
Secondly, in the trade context, we don't want to do anything in climate change, though, that penalizes those countries that are moving more quickly than others and creates an unhealthy imbalance there in a commercial sense as to how we would address that.
Help me with your first question again?
Q. I was asking whether this was the worst case scenario as we look forward to the negotiations.
Ambassador Kirk. Let me say this, and I don't mean to be facetious. I don't believe that you can be a trade minister or a trade counselor or a trade negotiator unless you have an inherent wild blind sense of optimism because there's always—If we look backwards historically, there's never been a time that people thought boy, this is the best time to do Uruguay or the best time—it is always a difficult environment because these are tough issues. Countries are trying to protect growing industries. They're worried about giving away jobs.
I happen to believe that sometimes it's easier to get people's attention in a crisis. There is a wonderful African proverb that says you can take no comfort from the hole in my end of the boat. Right now I think all of the world is in a ship that's sinking. It's a little bit easier to make us understand we all better work to plug that hole.
We think a great tool to not only plug that hole but to get the water out of the boat and get it moving is through trade liberalization. So I think in a converse way there's no better time for an extraordinarily potentially economic powerful tool like Doha than it is right now. This crisis has gotten our attention.
It's been said that you should never waste a crisis, and we shouldn't waste this. I think this creates a real imperative, a real momentum for us to move forward.
My final word, again, is I cannot tell you what a pleasure it's been to work with the new Minister for Commerce here, Minister Anan Sharma. I commend him for his extraordinary leadership just less than a month into his tenure for having the courage and the audacity to bring us all here together in Delhi. It's been a wonderfully productive two days and again, I look forward to being back next month as we continue our bilateral talks.
Thank you all for your patience. I look forward to seeing those of you who will be here again in a month.
Press Release from the Office of the U.S. Trade Representative, September 11, 2009Footnote 16
Following an announcement by the White House, United States Trade Representative Ron Kirk released the following statement today on the U.S. decision to impose remedies under Section 421 of the 1974 Trade Act to stop a harmful surge of imports into the U.S. of Chinese tires for passenger cars and light trucks. Following what the ITC determined was a surge, production of similar products in the U.S. dropped, domestic tire plants closed, and Americans lost their jobs. Today's steps are designed to level the playing field for American workers in the tire market. The three-year remedies, consisting of an additional tariff of 35 percent ad valorem in the first year, 30 percent ad valorem in the second, and 25 percent ad valorem in the third year, are being imposed after a finding by the United States International Trade Commission that a harmful surge of imports of Chinese tires disrupted the U.S. market for those products. President Obama also announced today that Trade Adjustment Assistance will be targeted to help affected workers, industries, and communities immediately, while tariff changes take effect.
“When China came in to the WTO, the U.S. negotiated the ability to impose remedies in situations just like this one,” said Kirk. “This Administration is doing what is necessary to enforce trade agreements on behalf of American workers and manufacturers. Enforcing trade laws is key to maintaining an open and free trading system.”
The ITC's finding of disruption in the U.S. tire market was accompanied by a recommendation of an additional tariff for three years. The amount of the three-year tariff announced today was set through the use of an economic model developed on an interagency basis, incorporating key characteristics of the global tire industry to arrive at tariff levels that could provide the desired and necessary relief.
“These remedies are a necessary response to the harm done to U.S. workers and businesses, designed to achieve the objective of curbing what the ITC determined was a harmful surge of Chinese tires into the U.S. market,” said Kirk. “China is America's second largest trading partner, and the health and strength of our relationship are very important to both countries. We consulted with China as allowed for under the WTO. This decision has been based carefully on America's rights under WTO rules, namely China's accession agreement, and on sound economic calculations.”
Under Section 421 of the 1974 Trade Act, the Office of the United States Trade Representative was responsible for recommending action to the President following the ITC's finding of market disruption. By law, the President's determination will take effect in 15 days.
Remarks by U.S. Trade Representative Kirk, September 16, 2009Footnote 17
Ambassador Ron Kirk delivered these remarks at the American Chamber of Commerce in São Paulo, Brazil
Ambassador Kirk. Thank you, Gabriel, for the warm welcome. I am so glad the Chamber has given me this opportunity to speak to you. The relationship between the United States and Brazil is significant and growing, so this is an exciting time for all of us.
The United States has always viewed Brazil as a valuable partner. Over the years, the ties between our two nations have expanded to include increased trade, capital flows, cross-border investment, and a wide range of educational, health, scientific and other joint activities. Presidents Obama and Lula have publicly recognized the benefits of a strong and dynamic relationship between our countries—a relationship that promotes democracy, commerce, and regional stability.
The U.S.-Brazil trading relationship is large, growing, and balanced. In 2008, U.S. exports to Brazil totaled $32.9 billion and imports from Brazil totaled $30.5 billion, supporting jobs and growth in both countries.
The United States is a top foreign investor in Brazil. In 2007, U.S. direct investment to Brazil was $41.6 billion, up 25.6% from 2006. And Brazilian investments in the U.S. totaled $1.4 billion in 2007, up 33.7% from 2006.
These investments make a tremendous, positive contribution to our economies. We must continue to build on that success.
Now, I know we don't always see eye to eye. We have disagreements. But I assure you that I am here to listen. We should work together to seek solutions that strengthen our relations. We should not let our disagreements define us.
We are already working together on many critical issues. And we are making progress on those issues. Our two nations share many of the same values and have common interests. Brazil's special interest in promoting development in the world's poorest countries is widely recognized. So is Brazil's commitment to development cooperation in Africa and its leadership role in the UN peace-keeping operation in Haiti. The Obama Administration shares that commitment to security and economic growth in the world's poorest regions.
In August, I spent eight days traveling throughout Africa to see first-hand how our trade preference and development programs are working to fulfill that commitment. We have made a lot of progress, but there is always more to do. I look forward to doing that work together.
We stand ready to listen to you and work with you. We are facing many common challenges. Among them is the need to stimulate economic growth in the face of the current global economic slowdown without turning inward or resorting to protectionist policies. We need to guard against protectionism around the world. During the Great Depression, knee-jerk protectionism sank the world into deeper suffering. Country after country walled itself off from trade, each responding to the others' insular restrictions. Soon global trade was at a near standstill. We can't afford to let that happen again. We need a trade policy that opens up opportunities, not one that shuts them down.
We need to seek areas where we can work together to spur economic growth and opportunity between, and within, our countries. One such area is the Doha Round. Furthering trade liberalization through new trade flows and meaningful market opening, which an ambitious and balanced conclusion to the Round would achieve, would spur economic growth and development both here in Brazil, and in all countries.
We also need innovative ideas to help ensure that the poor and historically disenfranchised are able to seize the opportunities that international trade can provide.
I am very impressed by much of the work that is taking place in Northeastern Brazil. Innovative centers, such as CESAR/Porto Digital in Recife, are creating new jobs and new opportunities throughout Brazil. This is another area in which we can, and should, work together. As you know, innovation is pivotal to the acceleration of development. Protecting and promoting that innovation, through strong intellectual property rights laws is essential to economic growth.
Brazil is home to some of the most creative minds in the world. But Brazil may not be reaping the rewards of that creativity. Brazil is responsible for 2 percent of scientific publications in the world, but Brazil receives only 0.2 percent of the world's patents. To me, this demonstrates lost opportunity. Brazil is also a worldwide cultural center whose literature, music and films are appreciated throughout the world. They are a valuable asset that should be protected through strong intellectual property rights laws.
Both our nations need to support innovation and creativity now more than ever. We need to create high-wage jobs today, and build new industries that will bring jobs for years to come.
Our interests far outweigh our differences. We must identify ways in which we can achieve our shared goals through dialogue and cooperation. To that end, our governments should consider whether our existing bilateral mechanisms are sufficient to reflect the depth of our bilateral trade relationship. I intend to explore this issue during my time in Brazil. I am confident that by working together, we can resolve our differences, and help lay the groundwork for a renewed bilateral trade relationship that reflects our strong values and helps both our economies grow.
Again, thank you for your warm welcome. I am looking forward to my time here in Brazil.
Press Release from the Office of the U.S. Trade Representative, September 25, 2009Footnote 18
Agriculture Secretary Tom Vilsack and United States Trade Representative Ron Kirk today commended conferees on the agriculture appropriations bill—led by Rep. Rosa DeLauro (D-CT), chair of the Agriculture Subcommittee of the House Appropriations Committee, on text slated for the FY 2010 agriculture appropriations conference report regarding the use of appropriated funds by USDA with respect to potential imports of poultry products from China. The conference agreement would allow USDA to use appropriated funds in FY 2010 to promulgate or implement a rule allowing imports of processed poultry or poultry products from China only after the Secretary of Agriculture notifies Congress that certain conditions have been met.
USDA worked with Rep. DeLauro to craft the final language, which ensures the protection of the nation's food supply in a manner consistent with scientific principles as required under U.S. international obligations. This result reflects the hard work and commitment of the Administration, Rep. De Lauro, Senator Mark Pryor (D-AR), and all House and Senate conferees.
“We commend the conferees for reaching an agreement that protects food safety and public health in a manner consistent with our international obligations,” said Secretary Vilsack. “The agreement reached by the conferees will maintain the safety of our food supply and ensure that America takes a leadership role in supporting a science and rules-based trading system.”
“We are pleased that the conferees were able to reach agreement on language that provides a strong means to address food safety concerns while recognizing the need to base health measures on scientific principles,” said Ambassador Kirk. “The conferees have acted in Americans' best interests in two ways: by insisting on the safety of our food supply, and also by maintaining America's leadership in the rules-based global trading system.”
Under U.S. law, poultry and poultry products may not be imported from any foreign country unless USDA determines that the food safety standards, facilities, and conditions of that country achieve a level of sanitary protection equivalent to that achieved by U.S. standards. If USDA determines that a country achieves this level of protection for some or all poultry products, it issues a rule permitting import of such products, subject to border inspection and other requirements.
Press Release from the Office of the U.S. Trade Representative, September 28, 2009Footnote 19
United States Trade Representative Ronald Kirk today announced that an arbitral tribunal has rejected Canadian claims that an offer to pay the U.S. Government US$36.66 million cured Canada's breach of the Softwood Lumber Agreement (SLA). The tribunal, which was formed under the auspices of the LCIA (formerly the London Court of International Arbitration), earlier determined that Canada breached the SLA and required Canada to cure its breach or impose additional export charges on shipments of softwood lumber products to the United States. Canada initiated this arbitration proceeding to have the tribunal determine whether Canada's payment offer cured the breach.
“The tribunal's decision confirms the view of the United States that the Softwood Lumber Agreement is enforceable. Canada failed to cure its breach, and the tribunal has upheld the ability of the United States to take action in response,” said Kirk. “This decision is an important one for America's businesses and workers, and final resolution of this arbitration is an important enforcement action on behalf of the United States.
“Our success in this arbitration proceeding is due to the tireless effort and countless hours dedicated by a host of U.S. government officials, in particular the attorneys and staff of the U.S. Department of Justice. I am grateful for the tremendous effort that led to this terrific outcome,” added Kirk.
In March 2008, the LCIA tribunal found that Canada breached the SLA by failing to calculate quotas properly during the first six months of 2007. On February 26, 2009, the LCIA tribunal issued its decision on a remedy for that breach, and determined that Canada was required to cure the breach by March 28, 2009.
The LCIA tribunal determined that, as an appropriate adjustment to compensate for its breach, Canada must collect an additional 10 percent ad valorem export charge on softwood lumber shipments from Eastern Canadian provinces until CDN $68.26 million has been collected. (Based on the exchange rate at the time of the award, the U.S. dollar equivalent is $54.8 million).
Canada did not impose the compensatory measures determined by the tribunal. Instead, on March 27, 2009, Canada offered to tender a payment of US$36.66 million to the U.S. Government. The United States considered that such an offer did not cure the breach identified by the tribunal, and thus rejected Canada's offer. On April 2, 2009, Canada requested that the LCIA tribunal determine whether Canada had cured the breach with its payment offer.
In the decision released today, the LCIA tribunal rejected Canada's argument that it cured its breach when it offered to pay US$36.66 million to the U.S. Government. The tribunal also rejected the notion that any government-to-government payment could cure a breach of the SLA, because such a payment would have no impact on exports of softwood lumber products from Canada to the United States. Canada had also requested that the tribunal clarify whether, if Canada imposed export charges, it could allocate such charges by exporter or by Region based on prior shipments. The tribunal rejected this request and found that any export charges must be imposed on all shipments from all Option B Regions.
A consequence of the LCIA tribunal's decision is that the United States may continue to impose 10 percent ad valorem customs duties on imports of softwood lumber products from four Canadian provinces (Ontario, Quebec, Manitoba, and Saskatchewan). These duties are scheduled to remain in place until such time as the United States has collected $54.8 million, the amount determined by the LCIA tribunal in its February 2009 decision.
Press Release from the Office of the U.S. Trade Representative, September 30, 2009Footnote 20
Today the United States and the Kingdom of Jordan convened a meeting of the Labor Subcommittee of the U.S.-Jordan Free Trade Agreement. Lewis Karesh, Assistant U.S. Trade Representative for Labor Affairs, led a U.S. delegation that included the Departments of Labor and State. The subcommittee meeting was productive and officials discussed a broad range of labor issues, including initiatives to improve respect for labor rights and increase cooperative efforts.
“The meetings in Jordan are an important example of the United States' increased engagement on labor issues,” said Karesh. “We are committed to supporting efforts by our FTA partners to improve labor conditions in their countries, and this is essential to ensuring that the benefits of trade are spread broadly.”
While in Jordan, the U.S. delegation will meet with stakeholders from the private sector and civil society, including labor unions, and will also visit garment factories in the Qualifying Industrial Zones to gather information on working conditions. Upon departing Jordan on October 2, the delegation will travel to Bahrain and then to Oman to discuss labor issues in the context of the Free Trade Agreements with those countries.