Ambassador Demetrios Marantis delivered these remarks at the U.S.-New Zealand Forum in Washington, D.C.

Ambassador Marantis. Thank you very much for that introduction.

Stepping into any room with my Kiwi friends and colleagues, I always feel welcomed and humbled. Welcomed by my Kiwi colleagues' genuine friendliness and warmth, and humbled knowing these same colleagues' achievements and ambitions. It is an honor to be here today, with Kiwi and American friends old and new. I would like to especially thank our New Zealand hosts, the Right Honorable Jim Bolger [Bowl-gehr] and the Right Honorable Mike Moore, and our American hosts, the Honorable Cal Dooley and Ambassador Susan Schwab.

As Deputy United States Trade Representative, half the world is my portfolio. Four months into my job, I am traveling to Asia or Africa as much as I am in Washington. Some trips have been better than others. There is much to accomplish and I have a lot to learn. But I have already learned one lesson that the international trade veterans in this audience well know: Key to any successful negotiating mission is the team that supports and accompanies you, your fellow travelers.

For decades, Americans and Kiwis have been a team, supporting each other as fellow travelers in good times and bad, achieving new successes and overcoming adversity. American and Kiwi soldiers served side-by-side in the Second World War, Vietnam, and Korea. Today, New Zealand's elite SAS combat force is helping coalition forces bring peace and stability to Afghanistan.

We have also linked arms in science and technology. Kiwi scientist William Pickering was instrumental to launching America's first satellite at the outset of our “space race” with the Soviet Union. United States Antarctic Program researchers deploy from Christchurch, and American and New Zealand scientists work hand-inhand at the South Pole. Americans and Kiwis even join forces to fight nature's challenges, exchanging expertise, equipment, and personnel to fight wildfires.

Our cooperation has brought us safety, security, and scientific advancement. It has also brought us prosperity. The United States is New Zealand's second largest trading partner. U.S. goods exports to New Zealand are up nearly 70 percent and services exports increased over 80 percent since the Uruguay Round. New Zealand is an attractive market for U.S. exporters of machinery, medical equipment, and fresh fruit, while New Zealand has seen success in their meat, dairy, and wine exports. For this last export success I am personally grateful.

You may have heard about another great U.S.-New Zealand success last summer, when Ambassador Ferguson, his wife Dawn, and I joined Senator Max Baucus to conquer 700 miles of highway in four days to visit five Montana cities. We didn't launch a satellite or fight fires. But Ambassador Ferguson met copper miners in Butte, greeted the Salish and Kootenai Tribal Council in Maori on the Flathead Indian reservation, and befriended the citizens of Palmerston North's sister city, Missoula. And those who met Ambassador Ferguson saw a world-class diplomat and an outstanding representative of New Zealand. And a man of which every Kiwi can be proud.

Given all that New Zealand and the United States have accomplished as partners and fellow travelers, many of you are asking: “Where do we go from here? What is the road ahead?” Let me say a few words about the next few miles of economic policy.

When President Obama took office nine months ago, the U.S. economy was in crisis. Since then, the Obama Administration has worked with Congress spur economic recovery and lay a new foundation for our economy. Together we have endeavored to give our workers the skills and education they need to compete, invest in renewable energy and the jobs of the future, and make health care affordable for families and businesses. These and other domestic economic reforms promise to make America's economy more competitive and prosperous for generations to come.

America's domestic economic reforms are also a commitment to the global economy. For an America more competitive and prosperous at home is also an America that can be more ambitious and engaged with its economic partners around the world. This engagement will not only benefit New Zealand and other countries, enhancing their exports, creating jobs, and raising standards of living, but it will also create more jobs at home by increasing U.S. exports to the world.

This Administration is backing its commitment to the domestic and global economies with action. Multilaterally, the United States has joined New Zealand and other countries to lead the World Trade Organization's Doha Round negotiations on environmental goods and services. We are working together to ensure robust market access that will facilitate trade and green the environment. We are also working together with New Zealand on fish subsidies.

The United States and New Zealand also share a common goal of advancing the Doha Round of WTO trade negotiations as the primary mechanism to reduce trade barriers and further accelerate global trade liberalization. The United States is committed to the successful completion of the Round as soon as possible. This goal can be met—but substance will drive progress. Success depends on everyone's efforts and contributions. For our part, the U.S. negotiating team is ready to go into the endgame, and we are looking for concrete signs that others are ready to do the same.

We are pleased that negotiations in Geneva are moving forward in their multilateral work. At the same time, these efforts need to be supplemented by sustained bilateral engagement involving key WTO members in order to achieve needed clarity and to bridge gaps concerning the market-opening contributions on agriculture, NAMA and services by key emerging markets such as China, Brazil, and India.

In addition to action in the WTO, this Administration is engaged regionally, and no region is more promising and dynamic than the Asia Pacific. For example, in the Asia Pacific Economic Cooperation (APEC) forum, which the United States will host in 2011, we continue to work with the other 20 APEC economies, including New Zealand, to promote regional economic integration and closer trade and investment linkages. We have launched a multi-year initiative to promote trade in services, and are building a meaningful work program on environmental goods and services that will focus on addressing non-tariff barriers and a developing an information exchange as a “go to” source of information on this dynamic industry. And we are together exploring how to better deepen our regional trade linkages—whether through the Trans-Pacific Partnership or other avenues.

In plurilateral fora, the United States is also cooperating closely with New Zealand and other countries. We are in the middle of negotiations to improve international standards for IPR enforcement through the negotiation of the Anti-Counterfeiting Trade Agreement. Our goal is to conclude that agreement next year, and press on to broaden participation in that agreement.

Bilaterally, the United States is committed to working with New Zealand to find new areas of success and cooperation. For example, earlier this year, representatives from our respective accounting licensing authorities signed a Mutual Recognition Agreement that will to facilitate the ability of U.S. and New Zealand accountants to practice in either country.

These are just a few of the challenges and opportunities before us, as partners and fellow travelers. There is much more to come. I have no illusions about their scale or difficulty. Progress may be slow and frustrating. But I have no doubt that this Administration is committed to engagement with the world economy with vigor, ambition, and vision.

Earlier I mentioned that I arrive at an event with Kiwis feeling welcomed and humbled. I should also say that I often leave an event with the Kiwis feeling inspired, maybe even a little bit daring. After all, it's a good feeling knowing the people who are your partners and fellow travelers were also the first to reach the summit of Mount Everest. And Sir Edmund Hillary reached the summit with a recipe for success that I think many Kiwis and Americans in this room share. As Hillary put it: We have modest abilities; we combine these with a good deal of determination, and we rather like to succeed.

Representative David Shark delivered these remarks in Geneva, Switzerland

Representative Shark. Thank you, Chair. The United States warmly welcomes the delegation of Chile, led by Ministry of External Relations Director of Multilateral Affairs Ana Novik and Ambassador Matus, to this, the fourth Trade Policy Review of Chile. We would first like to recognize the excellent work of the Secretariat and the Government of Chile in compiling the reports before us. They thoroughly detail Chile's key trade policy objectives since its last review in 2003, and they give us a more complete picture of Chilean policies affecting trade. We look forward to learning more about Chile's trade policies in this Review. Finally, we would like to thank Ambassador Eckart Guth, as discussant, for providing a helpful and insightful context for this review.

Chile has pursued sound economic policies for nearly three decades. Chile's Government has received high marks from economists and its citizens for its countercyclical spending in 2009 to offset the effects of the global economic crisis. To its credit, Chile has refrained from introducing fundamental changes to its already-open trade policy and has managed to continue along the path of trade liberalization since 2003. We would like to recognize Chile's open and transparent trade and investment regime and commend the delegation for the work your government has done to create a predictable business environment within Chile's borders. Chile's stable democratic institutions coupled with solid economic growth have provided an important example both regionally and globally of the benefits of open trade.

Successive Chilean administrations have remained steadfast in their commitment to deepen integration with the global economy through trade agreements. For example, the economies of the United States and Chile have long enjoyed close trade ties, the cornerstone of which is our bilateral free trade agreement, which entered into force on January 1, 2004. At the time of the 2003 TPR, the U.S. and Chilean economies were expected to integrate even more with the implementation of the bilateral FTA. We anticipated increased U.S. direct investment, thereby further stimulating trade flows.

Today, six years into our FTA, we can say that the growth in trade is consistent with our expectations. The latest available data show that from 2007 to 2008 U.S. direct investment in Chile grew by 9 percent. Our two-way bilateral trade in goods has nearly tripled since the FTA took effect through 2008, though trade has fallen somewhat in 2009 due to the global recession. There is no mistaking the synergy between trade, investment, and development; and we believe that the Chilean economy will continue to generate new opportunities for foreign investors and suppliers.

As it did in 2003, trade represents a significant and increasing portion of Chile's GDP, accompanying Chile's policy of open markets and increasing commercial ties through trade agreements. With more than 60 trade agreements with countries around the globe, we understand that Chile plans to continue negotiations with additional countries while nurturing export diversification strategies. Overall, the United States views Chile as a valuable partner in the western hemisphere and the ties between our two nations continue to grow. Chile remains a strong supporter of the Free Trade Area of the Americas negotiations. At the same time, Chile has continued to play a leadership role at the multilateral level, as most recently demonstrated by Ambassador Matus's Chairmanship of the General Council and the Chilean government's efforts to help bring the Doha Round to a successful conclusion. Chile has recognized the importance of open trade as a key development tool and the government has acted in accordance with this conviction.

The United States welcomes Chile's active participation in the WTO and the Doha Round. Our governments concur that the multilateral trading system needs further strengthening and we agree that given global supply chains and the interconnected nature of the world's economies the WTO has a unique role to play in addressing trade distortive practices and opening markets. We also welcome Chile's efforts as a “Friends of Fish” participant in pushing for a high ambition fisheries subsidies agreement. We value our close work with Chile to secure an agreement that will truly address the problems of global overcapacity and overfishing. Overall, our governments share a common Doha Round objective of achieving an ambitious agreement that would bring the benefits of trade liberalization to all.

There are, nonetheless, specific areas of Chile's regime where action could lead to improved trade and investment opportunities and flows. We have referred to them in our questions, but would like to touch on certain of those areas today.

First, we acknowledge that Chile has made some positive efforts to improve its IPR regime, including the creation of a specialized unit within the Chilean police force to handle IPR crimes. In addition, as the Secretariat notes, Chile recently opened a National Institute for Industrial Property to oversee administrative actions related to industrial property. We also understand that Chile recently acceded to the Patent Cooperation Treaty.

Nevertheless, Chile's IPR performance continues to fall well below our expectations. For example, the United States remains concerned about inadequate enforcement against copyright piracy and trademark counterfeiting. We understand that Chile's Congress continues to consider legislation that addresses copyright and other IP issues. We would particularly like to learn more about the status of Chile's pending copyright legislation as well as the government's work to strengthen enforcement mechanisms to fight trademark counterfeiting and copyright piracy.

The United States considers the Customs Valuation Agreement to be a key component of the transparency and predictability that suppliers need to conduct international trade. Therefore, another area of concern that we would like to highlight in this TPR involves Chile's inadequate appeals process. The Secretariat reports that appeals against Chilean Customs' decisions and actions may be lodged with the National Director of Customs. But, Chile apparently does not provide for the right of a subsequent appeal to a judicial authority as the Customs Valuation Agreement prescribes. We will study with interest Chile's response to our written question on this issue, particularly the government's plans to provide for this right of appeal.

The United States applauds Chile for significantly reforming its government procurement regime since 2003. We observe that, although Chile is an observer in the Government Procurement Agreement committee, the Chilean authorities have no plans to negotiate accession to this Agreement. The United States would like to encourage Chile carefully to consider joining the WTO Agreement on Government Procurement.

I will end my statement by reiterating our appreciation for Chile's active participation and leadership in the Doha Development Agenda negotiations. We look forward to continuing our work with Chile to achieve a balanced and ambitious result in the Doha negotiations with meaningful new market access for all.

The United States appreciates this opportunity to comment on Chile's trade policy. We welcome further cooperation on trade matters with our Chilean colleagues and we wish you a successful trade policy review.

Thank you.

Ambassador Ron Kirk, Secretary Gerardo Ruiz Mateos, and the Honorable Minister Stockwell Day delivered this joint statement, which outlines the overall results of the meeting of the NAFTA Free Trade Commission (FTC), in Dallas, Texas

Fifteen years ago our countries launched the North American Free Trade Agreement (NAFTA). Since its entry into force, trade and investment flows have increased, investment has grown, and our economies have become more competitive. The benefits of expanding trade have flowed to businesses, farmers, workers, and consumers.

Today we met to celebrate our achievements and to lay a course for the future. We note that the NAFTA partners implemented all of the tariff cuts on schedule or, in some cases, ahead of schedule. As a result, trade between our countries has blossomed. From 1993 to 2008, trade among the NAFTA countries has more than tripled, from $297 billion to $946.1 billion. Each day the NAFTA countries conduct nearly $2.6 billion in trilateral trade. We are committed to developing new and creative ways to promote trade.

Toward that end, we agreed to build upon the work at the August 2009 North American Leaders Summit, where Leaders agreed to “reinvigorate our trading relationship and to ensure that the benefits of our economic relationship are widely shared and sustainable.” We asked officials to develop a workplan to incorporate three principles: competitiveness, strengthening institutions, and communications and transparency. Since all tariff cuts under the agreement have been implemented, we asked officials to pursue cooperation in other areas, including reducing unnecessary regulatory differences to ensure the free flow of goods, services and capital through modern and efficient borders. This forward-looking workplan should draw upon the work already underway, as well as incorporate new elements, developed in consultation with all relevant stakeholders.

In light of the results of our Leaders' meeting, and in order to ensure that the benefits of our economic relationship are widely shared and sustainable, we agreed to seek to strengthen the relationship between the FTC and the North American Commission for Environmental Cooperation (CEC), and between the FTC and the North American Commission for Labor Cooperation (CLC). We realize the importance of effective communication as a necessary condition for a successful coordination. We agreed to establish an ad hoc working group composed of senior trade officials to explore areas of potential collaboration between the FTC and the CEC. The creation of such an ad hoc working group will provide a platform for further continued trilateral discussion about North American trade and the protection of the environment. We designated senior trade officials to enhance collaboration between the FTC and CLC and further trilateral cooperation on trade and labor issues.

Climate change is one of the most daunting and pressing challenges of our time and a solution requires ambitious and coordinated efforts by all nations. Given the integrated nature of our three economies, we underline the importance of working together.

We instructed the Working Group on Rules of Origin (WGRO) to continue its work to liberalize the NAFTA rules of origin, with a view to reaching agreement at the working level early in the new year. We asked the WGRO to examine the rules of origin for environmental goods, in order to determine whether liberalization of the rules of origin for such products would facilitate additional trade, taking into account discussions at the WTO. We are also pleased to note that we have recently implemented a third set of liberalizing changes to the NAFTA rules of origin, as well as technical rectifications to align the NAFTA rules of origin with the updated tariff schedules resulting from the 2007 amendments to the nomenclature of the Harmonized System.

We commend the work made by the Textiles and Apparel Working Group. Drawing upon its report to the Free Trade Commission, we asked the group to explore ways to expand trade in this sector.

We also commend the work of the North American Steel Trade Committee, which promotes continued cooperation among the three governments on international steel policy matters; serves as a consultative mechanism for regular exchanges of information and review of progress on matters of mutual interest or concern; and works to reduce remaining distortions in the North American steel market. This successful sectoral initiative can be a model for additional areas.

Since 2007, officials from our three countries have worked together to develop a coordinated strategy aimed at combating counterfeiting and piracy by focusing on enhancing detection and deterrence, expanding public awareness and outreach efforts, and measuring the scope and magnitude of counterfeiting and piracy in North America. We commend this work and reaffirm the commitment of our Leaders to cooperate in the protection of intellectual property rights to facilitate the development of innovative economies.

A key source for innovation, job creation and export growth in each of the NAFTA countries has been smaller, often newer firms. As such business establish themselves and seek new markets, they are most likely to make their first exports to a NAFTA partner. We instructed officials to exchange information on the experience of small and medium-sized enterprises (SMEs) under the NAFTA and opportunities for the NAFTA work agenda address the needs of such businesses and their workers. We will receive their report at the next Ministerial meeting in 2010.

We agreed to establish an ad hoc Working Group on Communications and Outreach to promote greater understanding of the NAFTA and its benefits.

The NAFTA working groups are often the bodies through which the Commission implements the commitments of the NAFTA, as well as the NAFTA work program. Through the working groups, we have created strong working relationships that have allowed us to address issues of mutual interest. As we move forward, we recognize that strengthening the NAFTA also means strengthening the working groups. We instructed officials to review the organization and reporting procedures of the NAFTA working groups in order to ensure that they address our priorities.

We recognize that the availability of private commercial dispute resolution procedures plays an important role in creating competitive conditions for trade in goods, services and capital and that the judiciaries of each country have an important role to play in effective private commercial dispute resolution procedures. We are encouraged by the work of the NAFTA 2022 Advisory Committee on Private Commercial Disputes and endorse its intent to focus forthcoming outreach activities on the judiciaries of each country to promote alternative dispute resolution mechanisms in the Free Trade Area.

We are committed to multilateral trade liberalization and to successfully concluding the WTO Doha Development Agenda. We urge all WTO Members to demonstrate renewed energy and directly engage with each other to evaluate and close the remaining gaps in the negotiations. Closing those gaps should proceed as quickly as possible to put the Doha Development Agenda on a path toward a balanced and ambitious overall outcome that opens new markets and creates new trade flows. We will continue to work together with our APEC colleagues at the 2009 APEC Ministers' and Leaders' meetings to advance the Doha Development Agenda and to accelerate APEC's work to strengthen economic integration in the Asia-Pacific.

Finally, we agreed that Mexico will host the next NAFTA Commission meeting in 2010.

Ambassador Ron Kirk, Secretary Gary Locke, and Secretary Thomas Vilsack delivered these remarks at the 20th U.S.-China Joint Commission on Commerce and Trade in Hangzhou, China

Ambassador Kirk. Thank you ladies and gentlemen. It's a pleasure to be here in lovely, and historic, Hangzhou, for the 20th session of the US-China Joint Commission on Commerce and Trade.

We made solid progress on a series of important trade issues that can help both of our countries achieve balanced and sustainable growth. Let me name some specific examples.

First, on the issue of intellectual protection and government procurement, we really believe that the government of China [inaudible] reenergize [inaudible] accede to the WTO Government Procurement Agreement. And China, more importantly, committed to submitting a revised offer to the WTO as early as 2010.

Also within the procurement context, a context of great interest to American producers of that product, produced in China by foreign investment enterprises will be treated as Chinese domestic products and China will issue a rule to this effect. China's progress on this important issue moves s closer to creating significant new markets and opportunities for American-based companies in China's sizeable government sector.

A second issue I'd like to address briefly is in the area of intellectual property rights protection. Here we made important progress in three very important areas.

First, China gave assurances today that it will impose maximum administrative penalties on internet pirates, and has also begun a four month campaign to clamp down on internet piracy.

Second, we were very pleased to learn that just yesterday China announced that it has published written notice conveying to state-run libraries the importance of protecting intellectual property of academic and medical journals.

Finally, China agreed that it will continue to work closely with the United States to resolve our concern about a new Ministry of Culture Regulation relating to online music distribution which creates very serious challenges for the American music industry.

At this time I would like to turn the podium over to my co-chair, United States Secretary of Commerce, Gary Locke.

Secretary Locke. Thank you very much, Ambassador Kirk, and I want to thank you for your incredible leadership and the work of your staff in helping organize this 20th JCCT.

I echo Ambassador Kirk's assessment that this was a very successful 20th session of the JCCT.

We had a very candid discussion with the Vice Premier and other Chinese officials on a wide range of very important issues. Issues raised by the Americans and issues raised by the Chinese.

To sum up, we made very significant progress on a number of issues raised by the Americans. In the area of clean energy, which is of utmost concern, and to the President, Americans and indeed a challenge facing the entire world, we're pleased that China has agreed to remove global content requirements for foreign participation in China's wind farm market. This will open up China's energy market to American companies and create jobs for Americans.

In response to concerns raised by our government, Vice Premier [Wan Jishan] also confirmed and indicated that China's Ministry of Health and the State Food and Drug Administration would be the relevant authorities regulating medical devices and that American devices would not be subjected to duplicative or redundant regulations or agencies.

On pharmaceuticals, we were very encouraged by China's initiatives to strengthen its oversight of the production and sales and marketing of what is called active pharmaceutical ingredients. This will significantly reduce the production of counterfeit medicine.

We also agreed to several cooperative initiatives in the areas including transparency, the environment, green building and various industry standards.

We also signed several agreements. I'm particularly proud on the signing of the MOU that establishes the U.S.-China Energy Cooperation Program. This program administered by the Trade Development Agency is a public/private partnership involving 21 major U.S. companies and will be focused on the commercialization of clean energy solutions in China. This is a very important effort to help drive and foster U.S.-China commercial cooperation in the sector of clean energy. Through this collaborative effort it's our hope that China and the United States will join together in solving the energy challenges for the world and to avoid catastrophic climate change.

In addition we noted issues of concern that are still being discussed in the JCCT working groups and we're committed to continuing to discuss these issues with the aim of resolving them as soon as possible.

I want to note that the working groups that are part of the JCCT deal with very complex issues and significant progress was made in each of those working groups. Their efforts resulted in the announcements that we're able to make today.

We want to thank all the staffs and all the people involved in all the ministries and the U.S. agencies for their incredible hard work and dedication throughout the entire year leading up to the agreements and the progress that were reported as part of the JCCT.

We believe that this productive meeting of the JCCT, this 20th meeting, builds a foundation for a most successful visit by President Obama in the next few weeks.

Now I'd like to turn the microphone over to Secretary of Agriculture Tom Vilsack for his announcements.

Secretary Vilsack. Thank you, Secretary Locke. Let me first of all thank you and Ambassador Kirk for your leadership as co-chairs of the American delegation to this JCCT meeting.

I'd also like to take this opportunity to thank our Chinese hosts for a very gracious reception. We at USDA recognize that two-way trade in agriculture, fish and forest products between the U.S. and China has grown in recent years to over $21 billion a year. This trade relationship creates important connections and benefits for farmers, workers and consumers in both countries.

Recognizing the importance of that relationship, Minister Sun and I signed a reaffirmation of a Memorandum of Understanding between our two countries in agriculture.

I must say that we were encouraged by statements made by Chinese officials today of China's intent to reopen the Chinese market in United States pork and live swine, consistent with science-based international standards. We look forward to the official announcement soon. China's intent to remove the H1N1 related ban on U.S. pork marks an important step forward in cooperation between the countries on agricultural issues. It is reflective of a constructive friendship and relationship [inaudible].

Ambassador Kirk. Thank you Secretary Vilsack.

Just a few closing words. We believe that this first JCCT in which the Obama administration has participated comes at a critically important time, just two weeks before President Obama's visit to meet President Hu here in Beijing. We are all greatly encouraged that the good work that we did here today will help to strengthen the engagement of trade issues and help forge a closer trade relationship between the U.S. and China.

It is quite fitting, perhaps, that we met here on the historic shores of Westlake in Hangzhou where our leaders first opened the door for future economic, commercial and diplomatic relationships. So as we conclude this meeting we are proud and inspired by our accomplishments in the past, but we're also proud and inspired by our shared commitment to a future of even greater economic growth and opportunity for the people of the Republic of China and the people of the United States of America.

Thank you.

Ambassador Demetrios Marantis delivered these remarks in Washington, DC at the U.S.-Japan Business Council Annual Business Conference

Ambassador Marantis. You all know the numbers. Japan is our fourth largest goods trading partner and a major destination for our services. By the time I finish here today, another $30 million in bilateral goods and services trade will have crossed our borders—$270 million by the end of the day. U.S. services exporters are driving much of the growth in our trade on the U.S. side.

This Administration seeks to strengthen our trade and economic ties with Japan further, including expanding our focus on pursuing common agendas.

On the other side of the Pacific, Japan's new Government has only been in place a short time. But the message we have been receiving from them is clear—the new Japanese Government also seeks stronger trade and economic ties with the United States.

Let me mention a few things I think that we can do.

Bilaterally, we need to maintain a focus on resolving issues of concern that are raised by our respective business communities and other stakeholders. Much of this work has taken place to date under our bilateral Regulatory Reform Initiative. It is important to keep this work going—but also update and strengthen it in new ways.

One way is to begin to use this forum as a venue to pursue new building blocks in our relationship—projects that require joint action to address practical or emerging regulatory and business environment issues of common interest.

One model that illustrates the possibilities for such joint work is our cooperation in the area of intellectual property protection. Even as there remain some outstanding issues between us, our overall interests are nonetheless in much greater alignment than ever before. As a result, we are able to work very closely with Japan to seek a successful conclusion of the Anti-Counterfeiting Trade Agreement, currently under negotiation along with a number of other countries. We are also working to streamline our patent procedures and other steps aimed at making practical improvements that benefit innovators in our economies. And we are closely cooperating in regional institutions—such as APEC—to pursue our common interests in IPR.

It is also important for us to step-up our bilateral cooperation to address issues in third countries where we have common concerns. We are already working together to address information technology policy issues in third countries like China, including bringing a joint dispute settlement case in the WTO against the EU relating to the WTO Information Technology Agreement. We believe there is more that can be done jointly to tackle common concerns around the world.

On the multilateral front, the United States and Japan share a common goal of advancing the Doha Round of WTO trade negotiations as the primary mechanism to reduce trade barriers and further accelerate global trade liberalization.

The United States is committed to the successful completion of the Round as soon as possible. This goal can be met— but substance will drive progress. Success depends on everyone's efforts and contributions. For our part, the U.S. negotiating team is ready to go into the endgame, and we are looking for concrete signs that others, including Japan, are ready to do the same.

Japan has benefited greatly from the international trading system, but frankly, Japan's agriculture sensitivities to date have held it back from filling the leadership role it could be playing. We hope Japan will step up its leadership to achieve a successful market opening result in the Round that will benefit the global economy and deliver on the development promise of Doha.

As the two largest economies in the Asia-Pacific region, our work in APEC is also of great importance. And we have before us a particularly valuable opportunity to advance our mutual goals in APEC while strengthening our own relationship.

After the APEC economy leaders meet in Singapore a few days from now, attention will quickly turn to Japan's 2010 host year for APEC. We have already been working with Japan very closely to make both Japan's 2010 APEC host year and the United States' 2011 APEC host year as successful as possible. Our cooperation will only intensify in the coming months. These two years present a major opportunity for our governments to strengthen and update APEC. This will ensure APEC remains relevant and meaningful, and allows us to use APEC to pursue new initiatives of common interest.

We are already working closely in APEC across many initiatives—ranging from bolstering regional economic integration to protecting intellectual property rights and promoting high tech trade and innovation. Other areas of overlapping interest that we seek to pursue jointly with Japan in the coming months and years include:

*green growth and steps to address global climate change;

*initiatives on services and on standards;

*new work on food security.

The next two years are pivotal for APEC. We are very pleased with the degree of cooperation that we have established with Japan to date and optimistic about the platform that APEC gives us to move our common agenda forward.

My vision for the U.S.-Japan economic and trade relationship is one of more dynamic engagement that better meets the potential for this relationship. It includes more problem solving—to resolve bilateral issues as well as address common concerns in third countries.

It includes prioritizing new modes of cooperation that allow us to pursue more common interests—ranging from pursuing building blocks that improve opportunities for our trade and economic growth, to closely cooperating to leverage our respective APEC host years in a mutually beneficial manner. And it includes sustained attention to achieve a successful conclusion to the Doha Development Agenda.

We are ready and eager to work on this agenda with Japan's new Government. We are also eager to seek the input of both our business communities—including those of you in this room with the real world experience who we need to continue to hear from as we set new priorities. Your views will be important for all of us going forward.

Ambassador Ron Kirk delivered these remarks in Washington, DC at the U.S.-Korea Business Council

Ambassador Kirk. President Obama and I recognize that successful engagement with the Asia-Pacific is a critical part of U.S. trade policy. The President will be traveling to Asia next week, with stops in Singapore for the APEC meetings, as well as visiting Japan, China, and Korea. While in Singapore, he will also hold a summit with the leaders of the ASEAN countries.

America's relationship with Korea is a critical part of our engagement in the Asia-Pacific. Korea is a vital strategic ally. It is a bulwark for stability and security in Northeast Asia, and one of America's most significant economic partners. Over the last 50 years, America's relationship with Korea has expanded and matured. And Korea has reaped the benefits of economic growth and development.

Korea is one of the greatest development stories in modern history. In the span of the past four decades, it has made the transition from one of the world's poorest countries to the world's 15th largest economy by GDP.

I want to take a minute to reflect on how the US-Korea relationship has also grown over that period. In the aftermath of the Korean War, America was a strong partner in Korea's efforts to develop into a stable, prosperous democracy. This took the form of a long-standing security alliance, but it was also the beginning of an economic partnership, as the United States became by far the biggest donor of economic assistance to Korea at that time.

Over time, our economic relationship continued to develop along with Korea's own development. And to be frank, this included a number of contentious trade disputes stemming from Korea's exportled growth strategy and highly protected home markets.

Then, in 1997, the Asian financial crisis struck. In the aftermath, our relationship underwent a profound change and maturation as Korea showed the world it could change the practices that led to the crisis in the corporate sector. Korea implemented new reforms to provide greater corporate transparency and restructured its financial institutions.

In the years since, Korea has made incredible strides. It has implemented reforms to increase corporate transparency and it has restructured its major financial institutions. Korea has also increasingly opened its markets to foreign competition. These pro-market, economic growth-oriented steps have enhanced consumer welfare, introduced new technologies and services, and stimulated innovation among domestic companies.

And the progress continues today. President Lee has embarked on an ambitious course of reform that will help the Korean economy to continue to grow. He is modernizing and streamlining the regulatory system and improving the investment environment. And he has dramatically increased outreach to all stakeholders in the Korean economy, including representatives of foreign businesses operating in Korea, to obtain input on how best to grow and reform the Korean economy.

The Lee Administration has also taken bold steps to strengthen intellectual property protections. New laws have been passed to boost copyright protection on the Internet, which is especially important in Korea's wired society. Those steps are already making a difference. So much so that, earlier this year, in recognition of the significant progress Korea has made in this area, we removed Korea from the Special 301 “Watch List.”

Korea and the United States are also collaborating extensively through the G-20. Next year, Korea will take over the chair of the G-20 and will host the G-20 leaders meeting. And we look forward to continuing our close cooperation in this vital forum.

In every forum and at every opportunity, we continue to work with Korea to improve our trade relationship. In a trade relationship as large as ours, it is inevitable that problems will arise, but we can work and are working through our disagreements. In just the past few months we have successfully resolved issues related to product testing, government procurement, food labeling, and technology standards, to name a few.

Now, as much as I know you all appreciate those accomplishments, I also know you're waiting for me to talk about the U.S.-Korea Free Trade Agreement.

This audience knows how important the Korean market is to America and vice versa, but it bears repeating: Korea is America's seventh-largest trading partner. Last year, two-way trade in goods alone totaled $83 billion dollars, and that's on top of $20 billion more in services trade. And if that's not enough, we have also invested $40 billion more in each others' economies.

In 2007, the independent and bipartisan U.S. International Trade Commission reported that if the U.S.-Korea FTA were put into effect, annual American exports to Korea could rise by $10–11 billion annually. And that's just the increase we could expect to see from the KORUS tariff cuts. When you factor in the benefits of a more open market for services and the elimination of non-tariff barriers, the impact could be far greater. As you know, the ITC's reports are the gold standard for weighing the economic benefits and costs of an Agreement.

The expected economic gains for Korea are equally impressive. Some suggest that the FTA could increase the Korean GDP by up to two percent.

But the potential effects of this FTA extend far beyond the economic realm. This Agreement will help to strengthen our bilateral alliance at a crucial time in global political affairs. While some Congressional leaders have continued to voice concern over specific elements of the FTA, they have told the President time and again that they are interested in expanding America's strong and proven partnership with South Korea. And they see this Agreement as one way to do so.

So, some may ask, with so many potential benefits so close to hand, what is taking the United States so long?

After all, the recent initialing of a free trade agreement between Korea and the European Union has made that question more relevant for any business that competes directly with European firms in the Korean market. And I know that many of you are in competition with those firms, in major sectors like electric machinery, chemicals, pharmaceuticals, medical devices, meats, and many others. So I understand that you may be concerned if the Korea-EU FTA is implemented while the KORUS FTA awaits Congressional consideration.

But I can tell you this, we are not standing still. President Obama has charged me with finding a way to address our substantive issues of concern and move the Agreement forward.

I am taking this charge very seriously. We have been conducting a thorough review of the KORUS FTA, along with the other two pending FTAs. Because in order to realize the full potential of this Agreement, it is absolutely crucial that we get it right. Precisely because our political and economic relationship is so important, we have to get this right. And we need the broadest possible political support to move forward.

But our review is about more than moving a single piece of legislation forward. This review, and others like it, is about keeping a promise to the American people, even as we work to respect and enhance our relationship with key trading partners, such as Korea.

President Obama has promised the American people that in this Administration, trade is going to work for America's working families. We've promised to consult with stakeholders and with the U.S. Congress as we craft and implement trade policy. We've promised that when we close trade deals on behalf of the American people, we're going to be looking for jobs just as hard as they are.

We owe the American people—and our trading partners—our best effort to make our country's trade policy as fair and effective as possible.

That's why we sought public comment on the KORUS FTA. We received hundreds of thoughtful and detailed responses, and we are taking those comments seriously.

I know that some of the strongest supporters of the FTA are in this room. I know you have deep interests in this Agreement. I know that many of you are anxious for it to come into force as soon as possible, so that you can take advantage of the benefits it holds in store. And you're not the only ones—a significant majority of the comments we received also expressed strong support for approving the FTA as soon as possible.

However, we need to be mindful that important stakeholders have real concerns with this Agreement. We owe it to all of you, and to Korea, to make sure that we understand fully these concerns and work hard to address them.

For a long time, the Korean playing field was far from level. And we are still dealing with the legacy of Korea's long-closed market, especially with respect to autos.

As all of you know, the American auto industry is working through a period of difficult transition. This Administration is working hard to encourage them to become leaner, greener, and more innovative. And we are also working hard to ensure our workers have the skills they need to compete in a global economy. Both the auto industry and our government know we need to become more competitive, and we are taking steps to make that happen.

Our market is open to Korean autos. All we are asking for is for our own auto companies to be able compete on a level playing field in the Korean market.

We believe that a level field is possible and within reach. And we are now developing proposals that will enable us to address concerns with respect to automotive trade. We are also looking at concerns with respect to beef and non-tariff measures more broadly to see how they can be addressed most effectively. As we move forward, we will consult closely with members of Congress and with American stakeholders to ensure that any proposals we make to Korea have broad political backing here at home.

It is important to emphasize that as we move forward with this process, we will also be working closely with Korea. We look forward to working respectfully and creatively with Korea, being mindful of Korean concerns and interests as well.

To that end, I have had a series of productive meetings with Trade Minister Kim over the past seven months. We both reiterated our commitment to seeing the FTA through to conclusion, and we talked about ways that we can work together to bridge our remaining differences. I look forward to seeing Minister Kim again in Singapore next week.

President Obama and President Lee have now met several times as well, and after the Singapore APEC meetings President Obama will visit Korea.

In their discussions, President Obama and President Lee have both reiterated the need to avoid protectionism and economic nationalism. They have agreed to broaden and modernize the U.S.-Korea alliance, and—crucially—they have also discussed the tremendous potential of the KORUS trade pact.

There is no question that the U.S.-Korea FTA has the potential to bring significant economic and strategic benefits to both countries.

I am committed to working together, so that we can find the path to an even stronger, more robust trading partnership between the United States and Korea.

Secretary Napolitano and World Customs Organization Secretary General Kunio Mikuriya announce preliminary results of largest global cash smuggling operation

Department of Homeland Security (DHS) Secretary Janet Napolitano and World Customs Organization (WCO) Secretary General Kunio Mikuriya today announced the preliminary results of Operation ATLAS—the largest multilateral operation in history targeting cash smugglers which took place from Oct. 26–30.

More than 80 countries participated in Operation ATLAS (an acronym for Assess, Target, Link, Analyze and Share)—leading to more than $3.5 million in cash seized and the identification of $24 million in undeclared currency that may have otherwise gone undetected at ports of entry around the world during the five-day period.

“In our increasingly networked world, multinational cooperation is critical to combating transnational criminal activity,” said Secretary Napolitano. “Today's announcement reflects an unprecedented model of international collaboration that we will continue to build upon in the future.”

“Operation ATLAS provided the perfect platform to promote the implementation of international anti-money laundering standards and recommendations, to improve national control techniques, and to enhance cooperation among all parties involved in fighting money laundering and terrorist financing,” said Secretary General Mikuriya. “The operation's successful outcomes also demonstrate the benefits that accrue from coordinated and focused inter-agency cooperation at the national level.”

DHS' U.S. Immigration and Customs Enforcement (ICE) led Operation ATLAS in close collaboration with fellow DHS component U.S. Customs and Border Protection (CBP), with the assistance of the WCO using CENcomm, a secure communication tool developed by the WCO. The operation was supported by Interpol and Europol.

Participating countries used real-time information sharing and coordination of cash declaration data to disrupt and dismantle criminal organizations that smuggle illicit cash around the world—employing several different methods to detect cash carried in baggage, on travelers and in shipments aboard commercial flights at designated airports.

Operation ATLAS reflects the commitment shared by Secretary Napolitano, Secretary General Mikuriya and WCO members to continue the expansion of cooperative efforts to deter transnational smuggling organizations around the world— bolstering global security and enhancing mutual efforts to deter terrorists and other criminals.

The announcement came during a press conference at WCO Headquarters in Brussels—part of Secretary Napolitano's week-long trip to Europe and the Middle East to meet with her international counterparts to discuss information sharing and privacy protection; collaborative efforts to secure cyber networks worldwide; the international response to the H1N1 global pandemic; and coordination to combat transnational criminal activity and the global threat of terrorism.

Secretary Napolitano's trip follows Secretary General Mikuriya's recent visit to the United States where he discussed trade security and facilitation as well as customs capacity building with top government and business leaders.

Ambassador Ron Kirk delivered this address in Singapore at the APEC CEO Summit

Ambassador Kirk. Thank you to Peter Loescher for that kind introduction. Thank you also to the Chair of this CEO Summit, Ms. Chong Siak Ching, to all business leaders in attendance, and to the ministers from my fellow APEC member economies for a productive week. It is great to be here with you today, and I bring you greetings from President Barack Obama.

Although the United States began as a small collection of Atlantic colonies, it didn't take long for even the earliest Americans to sense the promise of the Pacific. At the turn of the 19th century, America's third President, Thomas Jefferson, commissioned a Corps of Discovery to map a route across the vast expanse of the continent—all the way to the Pacific Ocean.

The Corps was a success, and soon a stream of pioneers followed in its footsteps, coming together in new towns that quickly grew into port cities and commercial centers.

America's ships left those ports laden with lumber and citrus and returned heavy with raw materials for America's growing manufacturing sector. As the 20th century progressed, technology and services joined the flow of goods between America and Asia-Pacific economies.

For the past 200 years, trade across the Pacific has brought opportunity and prosperity to America's western shore. Today, it supports jobs and businesses in every community in the United States.

Americans have never taken our eyes off the Asia-Pacific. We have not only engaged commercially, we have also become diplomatic partners and allies. We have worked together to support global security, and we continue to work together to advance freedom and tolerance around the world.

It is clear that Asia-Pacific economies are critical partners—in security and development as well as in commerce and trade. But it is our trading partnership I am here to discuss today.

Four out of five of America's largest export markets are APEC members. Last year, two way trade between the United States and APEC economies totaled more than $2.3 trillion. And when American manufacturers, service providers, farmers, and ranchers do business with Asia-Pacific companies and customers, all of us benefit.

As we move forward, we must look for new ways to increase trade both within APEC and around the world. During this time of global financial crisis, we cannot afford to underestimate the necessity of cooperation.

Our economies are all connected. That is true in good times as well as bad. When things are going well, we can combine our skills and knowledge to bring products, services, and prosperity to all our economies.

And when things are not going well, we cannot forget that synergy. As the African proverb says, you should take no comfort from the hole in my end of the boat. We must continue to nurture our partnerships.

To bring the world back from the economic brink, we must all work together. Already, many of our trading partners have started down the path to recovery.

Some, like China, never stopped growing, even when the crisis was at its worst. And others, like New Zealand, have recently returned to positive growth.

In the United States, we are confident and comforted by the reality that we are slowly turning the corner on the crisis, but we are sobered by the reality that we still have challenges ahead. Many Americans are still looking for jobs. We believe that every American who wants a job should have the opportunity to find one.

In order to achieve that goal and maintain the momentum of recovery, we are focused on shaping a stronger, more open trading system that will create additional well-paying jobs at home. As I think about what that will require, another proverb comes to mind: a rising tide lifts all boats. If we work together to rise above this downturn, we can lift up all our economies and all our peoples.

Taken as a whole, APEC economies have both the trading power and the collective potential to stimulate recovery and move global trade in the right direction— away from protectionism and toward a stronger, more open rules-based system.

APEC itself is a model for global trade done right. Although APEC's trade liberalization process is non-binding, APEC has become a highly integrated trading community.

APEC members are more likely to export to other APEC members than to non-members. In fact, 61 percent of total American manufacturing exports are destined for APEC economies, and roughly 3.7 million American jobs are supported by those exports.

The economic benefits of APEC extend throughout the region. For the last 20 years, per capita GDP growth throughout the APEC region has beat the world average, and even those who have never worked as part of the export economy have reaped rewards.

The potential of the Asia-Pacific region is great, and the Obama Administration is committed to making the most of our relationships throughout the region.

To that end, I am here along with three other Cabinet officials, and tomorrow President Obama will be here as well. We have all come to Singapore to represent the United States at APEC, because we recognize the extraordinary role and potential of this region as a catalyst for global recovery and growth.

Our decisions and actions together will have a real impact on the flow of global trade and investment, and on the well-being of our people. And it is important that we make those decisions and act with an eye to near-term cooperation and long-term growth.

The United States knows that engagement in the Asia-Pacific region is vital to America's trading future. If we want to create the jobs Americans need, we must gain access to Asia-Pacific markets.

For the sake of all our economies, we must break down long-standing barriers to trade and investments as well as newer impediments that obstruct trade and slow economic integration in the Asia-Pacific. This has become even more imperative as we seek to create a global economy based on balanced and sustained growth.

Within APEC, this means that the United States needs to consume less, and produce and export more, while APEC members with surpluses should seriously consider the need to increase their consumption and imports. On that basis, we can put our economies on a more sustained and balanced growth path, and help to avoid the boom and bust cycle that has plagued us.

Ensuring that we maintain a rules-based approach to trade is one dimension of helping to make this growth model work. Let me turn to some of the concrete steps we are taking in APEC to improve our trading system, specifically in services and trade facilitation.

One of our top priorities this week was to develop principles on the treatment of cross-border services, and to agree on a plan for our future work in the services sector. Many of you know in particular how important this is. You have pioneered and reported back to the APEC members the grand potential of a sustained effort to boost trade in services.

APEC is also demonstrating progress on environmental goods and services this week, as we launch the Environmental Goods and Services Information Exchange. That exchange is a new website designed to promote Asia-Pacific collaboration and cutting-edge environmental technologies, and to promote the global distribution of those innovations.

We are working with our partners across the Asia-Pacific to make it easier for businesses and entrepreneurs to take advantage of market opportunities.

We are working together to reduce red tape, improve transparency, and simplify customs documentation and procedures in order to reduce the costs of doing business and the time needed to make trade happen in the Asia-Pacific.

These steps will help all businesses, but they will be of particular importance to small and medium-sized enterprises. These enterprises are the backbone of our own economy, and they are the incubators for talented individuals and good ideas around the globe. And the United States is looking for every opportunity to help these businesses and their workers succeed.

Continued integration of the economies in this region will benefit workers, consumers, and businesses where each of us live.

To that end, I am pleased to report that just this morning in Tokyo, President Obama announced that the United States will engage with the Trans-Pacific Partnership. This will be done in close consultation with the United States Congress and with stakeholders at home. We will seek with current and future Trans-Pacific Partnership participants to shape a platform with the scope, coverage, and standards to successfully integrate the Asia-Pacific economies.

As the Office of the United States Trade Representative approaches this effort, we recognize that American workers, farmers, ranchers, manufacturers, and service providers face different challenges today than they have in the past. Therefore, further engagement in the Trans-Pacific Partnership gives us the opportunity to address gaps in our current agreements, and to set the standard for 21st-century trade agreements going forward.

A high-standard regional trade agreement under the Trans-Pacific Partnership could help bring home to the American people the jobs and economic prosperity that are the promise of trade.

To fulfill the full promise of APEC, we must look not only at what we can do for ourselves in the region, but also at how we can work together to demonstrate leadership on trade for the entire world.

This week's APEC meetings featured frank and productive sessions on the Doha round of world trade negotiations. Every single one of the 21 APEC members stands to benefit from a positive conclusion to the Doha round, and every single one has a stake in a successful outcome.

To the United States, success means a balanced, ambitious agreement with meaningful new market flows for all. APEC members should contribute to the effort to build on the progress that's been made, increase multilateral and bilateral engagement, and consider new ideas to move these vital talks into the endgame as soon as possible.

Looking around us at the pain caused by the economic crisis, it is clear that we must work together for stable, balanced growth. And a Doha round that secures new economic opportunities worldwide can be a key element in that effort.

We have many opportunities before us in the months and years to come. In 2011, the United States will host APEC, and we are already looking ahead to that meeting.

As the Asia-Pacific region rises economically, so does the potential for APEC to make its mark. And we look forward to working with you and with our APEC partners to strengthen APEC and make it ever more relevant on the world stage.

As history has demonstrated, it is never too early to plan for the future, and small steps can yield big gains. Had President Jefferson not sent the Corps of Discovery across the continent to the shores of the Pacific, the United States might not be a member of APEC today.

When the Corps set out into unknown territory, they had no idea what their journey might bring. Today, we have the benefit of decades of engagement and economic achievement. And we know the benefits trade can bring. It is up to us to seize the opportunity.

I invite you all to join us as we work to do so. Thank you all.

Ambassador Ron Kirk delivered these remarks in Geneva, Switzerland at the 7th Session of the WTO Ministerial Conference

Ambassador Kirk. The WTO's activities have improved lives throughout the world, contributed to global growth and development, and provided a strong bulwark against protectionism in troubled times. The WTOs ongoing work has the potential to generate further economic growth and development that can lift millions out of poverty.

These important goals are being fulfilled through the Doha Work Program, the day-to-day activities of the WTO's more than 20 standing committees, the organizations contributions to work on Aid for Trade, and by the integration of new Members into the rules-based multilateral trading system.

We are pleased that the negotiating groups established under the Doha Work Program have re-energized their multilateral work this fall.

But to close the remaining gaps in agriculture, NAMA, and services particularly with regard to the market access commitments by the most advanced developing countries this multilateral work needs to be supplemented by sustained direct bilateral engagement, as called for by G-20 leaders.

There is no secret to how we will achieve an ambitious and balanced result in each of these core areas. The United States has been clear that we will need to achieve meaningful market opening that will result in significant new trade flows, particularly in the worlds fastest-growing economies.

Little is being asked of developing country Members in terms of new commitments in the Round. But the gains in terms of economic growth, employment and prosperity stand to benefit all of us if trade is expanded in the years ahead in rapidly emerging global markets.

The more progress that can be made in advancing toward a final package in agriculture, NAMA, and in services, the more momentum we will be providing to the broader multilateral work.

The WTO's work on trade facilitation will simplify and modernize customs procedures, enhancing trading opportunities, improve the investment climate and help better integrate developing countries, particularly LDCs, into global supply networks.

With respect to LDCs, the United States stands by our commitment at Hong Kong to provide duty-free and quota-free market access to least-developed countries as part of the implementation of a successful conclusion to the Doha Round. This will complement ongoing U.S. efforts to foster the further integration of LDCs into the multilateral trading system.

The WTO is also advancing the liberalization of trade in environmental goods and services, and we fully support fast-tracking action in the WTO's work on liberalizing trade in climate-friendly technologies.

We also support the WTO's work on strengthening rules on fisheries subsidies, which can effectively put a stop to overcapacity and overfishing.

In addition to the important WTO work being done to conclude the Doha Round, it is universally recognized that eliminating tariffs alone is not sufficient to foster development. Assistance is needed to help build productive capacity in developing countries.

The United States is committed to providing substantial, effective grant Aid for Trade in response to priorities identified by beneficiary countries themselves.

U.S. trade capacity-building assistance totaled nearly $2.3 billion in FY2008, up 52 percent from FY2007. Since FY1999, U.S. trade capacity building funding has exceeded $10.2 billion.

The United States strongly supports the accession of new Members to the WTO, particularly in the case of the least developed countries. In this connection, we are committed to the effective implementation of the 2002 Decision on LDC Accessions.

Adoption of WTO provisions builds strong rules-based economic institutions that have a long-term positive impact on trade, economic growth and domestic development, and the process of WTO accession helps to facilitate the reforms necessary to economic growth and development.

The efforts of the United States in LDC accessions are centered on helping the applicant lay out its plan to accomplish necessary steps, and to take those steps in conjunction with provided technical assistance.

In all of these activities, the United States looks forward to continuing to work in partnership with WTO Members.

Ambassador Kirk and Secretary Locke welcome new strategic framework with Turkey

United States Trade Representative Ron Kirk and Secretary of Commerce Gary Locke today inaugurated a new process of engagement with the government of Turkey on economic and trade issues. The new policy structure, to be known formally as the “Framework for Strategic Economic and Commercial Cooperation” (Framework) was unveiled on the occasion of the visit of Turkish Prime Minister Recep Tayyip Erdogan to the White House.

During a joint press conference with their new Turkish counterpart, Deputy Prime Minister Ali Babacan, Ambassador Kirk and Secretary Locke, who will co-chair U.S. participation in the Framework process, stated that the Framework aims to help enhance the already robust interaction that takes place between the two governments on economic issues. U.S. Government agencies currently work with Turkish counterparts in the economic arena through the bilateral Trade and Investment Framework Agreement, the Economic Partnership Commission and the Energy Working Group, as well as through numerous ongoing contacts between officials at all levels. The new Framework will ensure regular coordination and review of these many activities at a senior political level.

“I am very pleased to be able to help kick off this new engagement with Turkey on economic matters,” said Ambassador Kirk. “U.S. economic ties with Turkey are strong. However, they have room for significant growth, given Turkey's development as a market in its own right, and its emerging role as a regional business hub. President Obama and President Gul in April committed to finding new ways to promote bilateral economic relations and we intend to use this new Framework process to advance that goal.”

“Launching the Framework will help us to expand our commercial relationship and create opportunities for U.S. workers,” said Secretary Locke. “The strong involvement of the private sector is critical to our efforts to increase U.S.-Turkish trade and investment. We hope to obtain private sector input in a formalized way to guide government-to-government discussions.”

BACKGROUND

Turkey is the United States' 39th largest goods trading partner, and bilateral trade has been steadily growing over the last 15 years. U.S.-Turkey two way goods trade totaled $14.6 billion during 2008. U.S. exports of goods to Turkey in 2008 were $10 billion, an increase of 51.1% ($3.4 billion) over 2007, and 262% from 1994. Goods imports from Turkey into the United States were $4.6 billion in 2008, up 0.9% ($41 million) from 2007, and 195% from 1994. The stock of U.S. foreign direct investment in Turkey was $6.1 billion in 2008. The stock of Turkish foreign direct investment in the United States was $218 million in 2007 (latest data available).

The Framework for Strategic Economic and Commercial Cooperation (Framework) will involve participation, on the U.S. side, of a variety of economic agencies, including USTR, the Commerce Department, the State Department, the Energy Department, and others where appropriate. They will work with their Turkish counterparts in the Treasury Undersecretariat, Foreign Trade Undersec-retariat, the Ministry of Foreign Affairs, the Ministry of Energy and Natural Resources, and other entities to reduce barriers to bilateral trade and investment and otherwise enhance bilateral economic cooperation.

In addition, the Framework envisions greater involvement of the private sector in both countries in the deliberations between the governments. The Commerce Department has proposed establishment of a U.S.-Turkey Business Council (Council) a public-private partnership that will bring together American and Turkish business leaders to identify ways to strengthen economic ties between the two countries. The purpose of the Council will be to make joint policy recommendations to the U.S. and Turkish Governments on strategies for increasing bilateral commercial linkages, improving both business climates, and eliminating impediments to trade and investment.

United States and Singapore hold Fifth Annual Free Trade Agreement Review

The United States and Singapore held their fifth annual review of the implementation of their Free Trade Agreement (FTA) December 3, 2009. Assistant United States Trade Representative Barbara Weisel led the U.S. delegation and Deputy Secretary (Trade) Koh Lin-Net of the Ministry of Trade and Industry led the Singaporean delegation.

During the review meeting, the two sides exchanged views on issues and concerns related to agricultural and textile market access, intellectual property rights, telecommunications and government procurement, and other issues. The two sides also reviewed the past year's activities under the Plan of Action for Environmental Cooperation, discussed additional opportunities for environmental cooperation and explored ways to intensify joint work on labor issues, including worker rights and human resources development.

The two sides also discussed ongoing cooperative efforts and welcomed the continued robust growth in bilateral economic trade and investment since the FTA came into force in 2003. Since the U.S.-Singapore FTA came into force, U.S. goods exports have increased 68 percent and Singapore is now the United States' 16th largest goods trading partner, with goods exports totaling $28 billion in 2008. U.S. agricultural exports to Singapore totaled $485 million 2008. Trade in services also remained strong over the past year, with U.S. exports of $9 billion to Singapore in 2008, up 12.5 percent from the previous year. In 2008, Singaporean investment in the United States increased by nearly 9 percent and U.S. investment in Singapore increased by 12 percent.

The U.S.-Singapore FTA also serves as a foundation for broader cooperation between the two countries regionally and multilaterally. The United States is engaging closely with Singapore on the Trans-Pacific Strategic Economic Partnership (TPP), a high-standard agreement that will serve as a platform for Asia-Pacific economic integration in a way that reflects U.S. priorities and values. Singapore is a founding member of the TPP. The United States and Singapore also work together closely in the WTO, ASEAN and APEC.

USTR Ron Kirk remarks on Trans-Pacific Partnership negotiations

United States Trade Representative Ron Kirk commented this morning on Monday's announcement that President Obama intends to enter into negotiations of a regional, Asia-Pacific trade agreement, known as the Trans-Pacific Partnership (TPP) Agreement, with the objective of shaping a high-standard, broad-based regional pact. Ambassador Kirk spoke about TPP during his remarks at an event entitled “APEC and the USA: Looking to 2011 and Beyond,” sponsored by the Washington International Trade Association, The National Center for APEC, and the International Gateway Program of the Ronald Reagan Building. Following is an excerpt from Ambassador Kirk's remarks as prepared for delivery:

“Because the Asia-Pacific is so vital to America's economic future, we have also decided to participate in the Trans-Pacific Partnership. Because my vision for America's Asia-Pacific trade is not limited to one organization, but will embrace every opportunity for growth.

“Through the Trans-Pacific Partnership, we have the opportunity to expand U.S. trade in the Asia-Pacific by negotiating and shaping a high-standard trade agreement with key Asia-Pacific economic partners. Right now, the TPP includes Australia, Brunei, Chile, New Zealand, Peru, Singapore, and Vietnam—partners that are geographically and developmentally diverse, but are of one mind in their ambition. Our participation is based on the shared objective of expanding this group to include additional Asia-Pacific economies in what will become the largest, most dynamic trade collaboration of our time.

“Of course, negotiating a high standard agreement among such a geographically diverse group will not be easy.

“We will have to confront big challenges, from rationalizing rules of origin amongst our current FTA partners to addressing agricultural, developmental, and labor challenges elsewhere to adding additional countries in ways that ensure that we maintain a comprehensive, high standard agreement. But with our initial group of partners, we expect to break new ground, to create a true 21st century trade agreement. The TPP I intend to negotiate and conclude will reflect U.S. priorities and values, enhance American competitiveness, and generate job-creating opportunities for American businesses and workers.

“In short, we expect the TPP agreement to serve as a model for the future of American trade. We recognize that today's workers, businesses, and farmers have different concerns than they did a generation ago, and we intend to update our approach to trade in keeping with a changing world. In these negotiations, we will talk about new technologies, emerging business sectors, and the needs of small businesses alongside labor, environmental, and more traditional trade concerns in the context of a regional approach to trade.

“Already, USTR staff have begun meeting with their counterparts from Trans-Pacific Partnership nations. And we are initiating a new partnership with Congress and with domestic stakeholders to determine how best to engage with the TPP.

“You have heard our vision, and now we want to hear yours. Yesterday, we sent a letter to Congress announcing our intent to pursue trade-creating opportunities through the TPP and asking for their input. In the coming months, we expect to work hand in hand with Congress to develop priorities for these critical negotiations.

“And today, a notice in the Federal Register seeking comments from farmers, ranchers, workers, businesses, and all of you is up on the web. This is your chance to tell us your thoughts on Asia-Pacific trade generally and the TPP specifically.

“I welcome all of you here today to share those thoughts with us. We want to hear your best ideas to jump-start growth by linking American businesses and workers to customers across the Asia-Pacific.

“Americans can expect that USTR will work to shape a stronger, more open rules-based system that will create high-quality jobs. And as we move forward with the TPP and work toward the 2011 Hawaii APEC Leaders meeting, we will do so with the objective of generating economic opportunities for American businesses and workers alike.”

Ambassador Ron Kirk delivered these remarks in Washington, DC at a Washington International Trade Association and National Center for APEC Event

Introductory Remarks Omitted

Ambassador Kirk. I am excited to talk to you about our work at the APEC ministerial and about the future of our Asia-Pacific trade relations.

For as long as America has existed, American pioneers and entrepreneurs have been drawn to opportunities in the Asia-Pacific. Even before the United States acquired its first Pacific port, ships sailed constantly between the United States and Far East.

By the mid-nineteenth century those ships supplied American factories with raw materials from Asia and filled American pantries with sugar and rice from the Pacific. Trade was booming, and American leaders began to take notice.

From Congress to the White House, American officials were compelled by the potential of trans-Pacific trade. The United States encouraged Asia-Pacific leaders to expand their commerce with America and welcomed new trading partners across the region.

In fact, the first-ever State Dinner was held in honor of an Asia-Pacific economic partner. In 1874, President Ulysses Grant invited the King of Hawaii to the White House gala, where the two leaders talked about the possibility of tariff-free trade in Hawaiian goods.

Now, a lot has changed in the past 200 years—today Hawaii is an American state, not a foreign nation. But it is still a critical link to the Pacific. And in 2011, the United States will host the APEC Leaders Meeting in Hawaii.

Since its inception 20 years ago, APEC has provided a critical forum for economic collaboration in the Asia-Pacific and a model for global trade done right. And over the last two decades, GDP growth in the Asia-Pacific has beat the global average and citizens in every APEC economy have benefitted.

95 percent of the world's consumers live outside America's borders and over 2 billion of them call APEC economies home. Many of the world's fastest-growing markets are located in the Asia-Pacific. And right now, trade among APEC members represents nearly 45 percent of global trade.

That's one reason why the Asia-Pacific region is a top destination for U.S. goods. In 2006, nearly two-thirds of American manufacturing exports were bound for APEC markets. And those exports supported 3.7 million high-quality American jobs.

In Los Angeles, where I met with community and business leaders last week, so many goods move through the Port that more than 6,000 hard-working men and women are employed to keep the flow of trade moving. And the vast majority of those goods are either from Asia or bound for it—looking out over the harbor there were Cosco shipping containers from China, Mitsui containers from Japan. Evergreen containers bound for Taiwan, and Hansin containers ready to sail to Korea.

Almost every day, American resin producers, cotton growers, and paper manufacturers are busy loading their goods for sale to customers in the Asia-Pacific, and port workers are unloading furniture, shoes, and clothes destined for American households. And, although it wasn't on display at the LA Port, American service providers are selling tourism, logistics, and entertainment services to Asia-Pacific consumers, creating even more of the high-quality jobs Americans want here at home.

Now, all that is good news. And over the last decade, U.S. exports to Asia have grown steadily. But, unfortunately, they haven't grown as rapidly as exports from some other regions—in dollar terms the growth of European Union exports to the Pacific since 2000 has been more than double U.S. growth in the same region. And the number of trade agreements in the Asia-Pacific that exclude the United States has proliferated, shutting American businesses and workers out of valuable opportunities.

That is that state of Asia-Pacific trade today. But we're not just here to talk about the status quo. We want to focus on the Asia-Pacific of the future. We want to discuss how we can use APEC to make it possible for more Americans to sell their goods and services to Asia-Pacific markets and consumers.

I know you have a vision for the future of the Asia-Pacific. And I have one too.

The Asia-Pacific I envision is one where more American manufacturers, producers, service providers, innovators, and companies do business across the region—where fewer barriers stand in their way and more job-creating export opportunities are at their calling

I envision an Asia-Pacific where consumers enjoy the quality products of America's farms and ranches, certain in the knowledge that international sound science backs their health and safety.

I envision an Asia-Pacific that promotes small- and medium-sized businesses by reducing red tape and making rules and regulations more transparent.

And I envision an Asian-Pacific trade agenda that reflects our values. Values that compel us to pursue policies that will leave future generations with sustainable forests, clean water, and healthy air. Values that compel us to pursue labor policies which work as hard for our workers' health and safety, as our workers toil for our prosperity.

That is part of my vision and the vision of our President.

And this Administration is already working to fulfill that vision.

First, we are working to address outstanding concerns with the U.S.-Korea Free Trade Agreement—particularly with respect to autos and beef—so that this Administration can present the agreement to Congress.

Second, we are working with other APEC members to break down longstanding trade and investment barriers that are slowing economic integration in the Asia-Pacific.

At the APEC meetings this November, we made progress towards that goal by developing core principles to promote cross-border services trade and devising a strong action plan for future work on environmental goods and services to be carried out beginning in 2010.

Third, in the Asia-Pacific I envision, it should be cheaper and easier for businesses of all kinds to conduct trade throughout the region. USTR is making this so. We are working with APEC economies to eliminate obstacles to the flow of goods through supply chains. We simplified rules of origin documentation and procedures to make it easier to take advantage of preferential trade deals in the region. And we improved the transparency and accessibility of APEC economies' customs information and regulations.

Fourth, we are continuing APEC's work to promote environmentally sustainable growth in the region. This year we agreed on an ambitious plan to address barriers to trade and investment in environmental goods and services in APEC. We also launched an unprecedented new tool that will help facilitate new economic cooperation and development in the environmental sector. The Environmental Goods and Services Information Exchange will promote collaboration on cutting-edge environmental technologies in the Asia-Pacific region. The EGSIE is a demonstrable step forward for trade in environmental goods and services, and it is an unprecedented resource for American workers and businesses. These initiatives together will provide American exporters with the tools to succeed in the Asia-Pacific region and facilitate green growth worldwide.

Fifth, the United States plans to make the most of our 2011 host year. This will be a rare and important opportunity to push forward a bolder vision for APEC. As the 2011 host, we will promote an agenda of economic integration and we will work to create a trade-facilitating environment in the Asia-Pacific region. And as we do so, we will be making the case for Asia-Pacific trade to American workers, families, and businesses, because that trade is critically important to American economic growth.

And that brings me to the sixth and most exciting step on the path to fulfilling our vision—the Trans Pacific Partnership Agreement. Because the Asia-Pacific is so vital to America's economic future, we have also decided to participate in the Trans-Pacific Partnership. Because my vision for America's Asia-Pacific trade is not limited to one organization, but will embrace every opportunity for growth.

Through the Trans-Pacific Partnership, we have the opportunity to expand U.S. trade in the Asia-Pacific by negotiating and shaping a high-standard trade agreement with key Asia-Pacific economic partners. Right now, the TPP includes Australia, Brunei, Chile, New Zealand, Peru, Singapore, and Vietnam—partners that are geographically and developmentally diverse, but are of one mind in their ambition. Our participation is based on the shared objective of expanding this group to include additional Asia-Pacific economies in what will become the largest, most dynamic trade collaboration of our time.

Of course, negotiating a high standard agreement among such a geographically diverse group will not be easy.

We will have to confront big challenges, from rationalizing rules of origin amongst our current FTA partners to addressing agricultural, developmental, and labor challenges elsewhere to adding additional countries in ways that ensure that we maintain a comprehensive, high standard agreement. But with our initial group of partners, we expect to break new ground, to create a true 21st century trade agreement. The TPP I intend to negotiate and conclude will reflect U.S. priorities and values, enhance American competitiveness, and generate job-creating opportunities for American businesses and workers.

In short, we expect the TPP agreement to serve as a model for the future of American trade. We recognize that today's workers, businesses, and farmers have different concerns than they did a generation ago, and we intend to update our approach to trade in keeping with a changing world. In these negotiations, we will talk about new technologies, emerging business sectors, and the needs of small businesses alongside labor, environmental, and more traditional trade concerns in the context of a regional approach to trade.

Already, USTR staff have begun meeting with their counterparts from Trans-Pacific Partnership nations. And we are initiating a new partnership with Congress and with domestic stakeholders to determine how best to engage with the TPP.

You have heard our vision, and now we want to hear yours. Yesterday, we sent a letter to Congress announcing our intent to pursue trade-creating opportunities through the TPP and asking for their input. In the coming months, we expect to work hand in hand with Congress to develop priorities for these critical negotiations.

And today, a notice in the Federal Register seeking comments from farmers, ranchers, workers, businesses, and all of you is up on the web. This is your chance to tell us your thoughts on Asia-Pacific trade generally and the TPP specifically.

I welcome all of you here today to share those thoughts with us. We want to hear your best ideas to jump-start growth by linking American businesses and workers to customers across the Asia-Pacific.

Americans can expect that USTR will work to shape a stronger, more open rules-based system that will create high-quality jobs. And as we move forward with the TPP and work toward the 2011 Hawaii APEC Leaders meeting, we will do so with the objective of generating economic opportunities for American businesses and workers alike.

At the same time, our partners in the Asia-Pacific can trust that we will remain committed to further strengthening economic integration in the Asia-Pacific. Because that integration will help businesses of every size, workers of every kind, and consumers from every nation.

As the Asia-Pacific rises economically, the actions we take in that region will make a real difference in the flow of trade and investment. The choices we make now are critical not only to the future of American exports, but also to the future of American jobs. Because if we can boost our exports to APEC countries by just 5%, we can create hundreds of thousands of new U.S. jobs. This isn't just academic; this is about creating a brighter future for American families.

We have come a long way since President Grant's meeting with the King of Hawaii. We are more interconnected with the Asia-Pacific region that at any time in history. It us up to us to translate that engagement into tangible gains for American businesses and workers: more trade opportunities, more jobs, higher wages, and a better quality of life.

Thank you all. I look forward to working with you.

USTR Ron Kirk announces U.S.-EU agreement on longstanding bananas dispute

United States Trade Representative Ron Kirk announced today that the United States and the European Union (EU) have initialed an agreement designed to lead to settlement of a longstanding dispute over the EU's bananas trading regime. In the agreement, the EU undertakes not to rein-troduce measures that discriminate among bananas distributors based on the ownership or control of the distributor or the source of the bananas, and to maintain a non-discriminatory, tariff-only regime for the importation of bananas. The U.S.-EU agreement complements an agreement (the Geneva Agreement on Trade in Bananas or GATB) also concluded today between the EU and several Latin American banana-supplying countries. That agreement provides for staged EU tariff cuts that will bring the EU into compliance with its obligations under the World Trade Organization (WTO) Agreement.

“The United States has worked closely over the years with Latin American banana-producing countries to ensure that the EU's bananas import regime was consistent with its WTO obligations. It has been a long road, and we still have more to travel before we finally and conclusively settle this dispute. But we believe that we have turned the corner toward that destination and look forward to getting there as soon as possible,” said Ambassador Kirk.

The initialing of both agreements today in Geneva starts a process that, when completed, will culminate with the settling of the various banana disputes and claims against the EU in the World Trade Organization. Once the various parties conclude their domestic ratification procedures, the agreements will be signed and then enter into force. Upon entry in force, the EU will need to request formal WTO certification of its new tariffs on bananas. The GATB provides that once the certification process is concluded, the EU and the Latin American signatories to the GATB will settle their disputes and claims. Once that has occurred, the United States will also settle its dispute with the EU.

USTR and Israel hold FTA Joint Committee meeting

Yesterday representatives of the United States and the Government of Israel convened a meeting of the Joint Committee of the U.S.-Israel Free Trade Agreement (FTA). Christopher Wilson, Assistant U.S. Trade Representative for Europe and the Middle East, led a U.S. delegation that included representatives from the Departments of Commerce, Agriculture, and State.

At the Joint Committee meeting, officials discussed bilateral trade, investment and economic issues of mutual interest, as well as the administration of the FTA. Both governments acknowledged the progress and collaborative work that has taken place since the last meeting of the Joint Committee in Washington in October 2007. The delegations stressed that the Joint Committee meetings are an important aspect of the continued development of cooperation and partnership between the United States and Israel.

“These meetings in Israel are an important example of the United States' commitment to ensuring that our trade agreements are an economic success for workers, farmers, ranchers, businesses and consumers, and they also show how the FTA with Israel, along with the FTAs with Jordan, Bahrain, Morocco and Oman, demonstrates the United States' commitment to deepening our relationship with the Middle East region and to ensuring that the benefits of trade liberalization are spread broadly,” said Wilson.

The FTA contributes significantly to the strong bilateral relations between the United States and Israel. The two sides agreed to continue their work to strengthen cooperation in trade, investment and other economic issues. Both delegations also acknowledged the importance of engaging their respective private sectors, particularly small to medium-sized enterprises, to take advantage of the FTA.

USTR and Jordan hold FTA Joint Committee meeting

On Tuesday, December 15, 2009, representatives of the United States and the Government of Jordan convened a meeting of the Joint Committee of the U.S.-Jordan Free Trade Agreement (FTA). Christopher Wilson, Assistant U.S. Trade Representative for Europe and the Middle East, led a U.S. delegation that included representatives from the Departments of Commerce, Agriculture, Labor and State.

At the Joint Committee meeting, officials discussed economic conditions in both countries, reviewed advances in bilateral trade and investment since the FTA entered into force, and discussed the development of bilateral cooperation in areas including: general economic cooperation, investment, agriculture, innovation, IPR protection and enforcement, customs issues, environmental and labor issues, and capacity building. Both governments acknowledged the progress and collaborative work that has taken place since the last meeting of the Joint Committee in Washington in October 2008. The two sides also reviewed the past year's activities under the Plan of Action from the last meeting of the Joint Committee in Washington in October 2008. As part of that discussion, officials committed to explore ways to intensify joint work on environment, labor and other issues. Jordan agreed to include the United States in consultations on its environment law and proposed amendments and arranged for a set of outreach sessions on the margins of the meeting with key environmental stakeholders.

The FTA contributes significantly to the strong bilateral relations between the United States and Jordan. The two sides agreed to continue their work to strengthen cooperation in trade, investment and other economic issues. Both delegations also acknowledged the importance of engaging their respective private sectors, particularly small to medium-sized enterprises, to take advantage of the FTA.

The U.S.-Jordan commercial relationship has developed significantly since the U.S.-Jordan FTA entered into force in December 2001. Since that time, there have been substantial increases in bilateral trade—overall trade in goods between the United States and Jordan increased 430 percent between 2001 and 2008 to $2.1 billion. The United States exports to Jordan are dominated by sales of vehicles, machinery and aircraft whereas imports are predominantly textile goods. While bilateral trade has declined slightly in the last two years due to global economic conditions, both the United States and Jordan are hopeful that the multi-year positive trend will soon return.

WTO Appellate Body confirms finding against China's treatment of certain copyright-intensive products

U.S. Trade Representative Ron Kirk announced today that the WTO Appellate Body has confirmed that China's restrictions on the importation and distribution of certain copyright-intensive products are inconsistent with China's WTO obligations. The products at issue include films for theatrical release, DVDs, music, books and journals.

“Today America got a big win. We are very pleased that the WTO has found against China's import and distribution restrictions on U.S. movies, music, DVDs and publications,” Ambassador Kirk said. “The Appellate Body's findings are key to ensuring full market access in China for legitimate, high-quality entertainment products and the exporters and distributors of those products. U.S. companies and workers are at the cutting edge of these industries, and they deserve a full chance to compete under agreed WTO rules. We expect China to respond promptly to these findings and bring its measures into compliance.”

Today's Appellate Body report and the WTO panel report released on August 12, 2009 call on China to allow U.S. companies to import into China films for theatrical release; audiovisual entertainment products, such as DVDs; music and other sound recordings; and reading materials. They also call on China to eliminate the discriminatory treatment that U.S. distributors of certain products face—such as discriminatory operating term and capital requirements—as well as to allow U.S. companies to partner with Chinese enterprises in joint ventures to distribute music and other sound recordings over the internet.

“This case is also an important part of our efforts to combat intellectual property piracy,” Ambassador Kirk noted. “The panel and Appellate Body findings ensure that legitimate American products are granted market access so that they can get to market and beat out the pirates. This finding helps to ensure that America's creative ingenuity and innovation are protected abroad.”

BACKGROUND

The United States initiated this WTO dispute in April 2007.

In this dispute, the United States sought to address three significant market access concerns.

First, China prohibits foreign enterprises and individuals from importing reading materials, audiovisual home entertainment products such as DVDs, music and other sound recordings, and films for theatrical release. The WTO panel report found that China's key importation restrictions on these products are inconsistent with its obligations under its Accession Protocol. The panel also found that China's restrictions were not justified by the exception in the GATT 1994 related to the protection of public morals.

Second, China prohibits foreign enterprises from distributing certain reading materials and from distributing music electronically. China also imposes discriminatory operating requirements on foreign-invested distributors of reading materials and DVDs. The WTO panel report found that these prohibitions and discriminatory operating requirements are inconsistent with China's obligations under the GATS.

Third, certain imported products face more burdensome requirements before they may be distributed in China than domestic products. The panel found that because of these requirements, China discriminates against imported reading materials in several significant ways in breach of the national treatment obligation in the GATT 1994.

On appeal, China asserted three claims. First, China contended that its restrictions on importation of the products at issue are justified by an exception related to the protection of public morals. Second, China claimed that while it had made commitments to allow foreign enterprises to partner in joint ventures with Chinese enterprises to distribute music, those commitments did not cover the electronic distribution of music. Third, and finally, China claimed that its import restrictions on films for theatrical release and certain types of sound recordings and DVDs were not inconsistent with China's commitments related to the right to import, because those products were not goods and therefore were not subject to those commitments.

The WTO Appellate Body rejected each of China's claims and upheld the panel's findings with respect to each claim.

The WTO Dispute Settlement Body is expected to adopt the Appellate Body report and the panel report within the next 30 days. Within 30 days following adoption, China must announce its intentions with respect to implementation of the WTO's rulings.

Statement from the Press Secretary on the extension of the Generalized System of Preferences Program and the Andean Trade Preferences Act

Yesterday, the President signed legislation extending for a year the duty-free treatment available to 131 developing countries under the Generalized System of Preferences (GSP) program. This legislation also extends for a year the Andean Trade Preference Act (ATPA) program, which currently applies to imports from Colombia, Ecuador and Peru. We welcome this legislation as a renewed statement of America's commitment to work with developing countries to increase their participation in the global trading system. GSP increases trade, creates good jobs for our economy, and further helps to expand choices and lower costs for U.S. consumers and industry. In part due to the market opening under the GSP program, the United States is one of the world's most open economies to products of developing countries and this helps alleviate poverty globally.

Extension of the ATPA program will also encourage trade and help countries in the Andean region combat the scourge of narcotics production and trafficking. The legislation did not restore benefits to Bolivia. We believe that the United States and Bolivia need to work closely together to improve cooperation with respect to our common objective of combating the production of and trafficking in illicit narcotics. The President has directed the Administration to work with the government of Bolivia to improve cooperation, and if cooperation improves, to work with Congress to restore benefits to Bolivia under the ATPA program.

Joint statement from USTR, USDA on the proposed passage of an amendment to Taiwan's Food Sanitation Act

The Office of the United States Trade Representative and the U.S. Department of Agriculture today released a brief statement regarding the proposed amendment to Taiwan's Food Sanitation Act that would bar import of some U.S. beef and beef products. The following statement is from Deputy United States Trade Representative Demetrios Marantis and Undersecretary for Farm and Foreign Agricultural Services Jim Miller:

We are deeply concerned and disappointed by reports that Taiwan's Legislative Yuan has taken initial steps toward the passage of an amendment to the Food Sanitation Act that contains provisions that would unjustifiably bar the import of certain U.S. beef and beef products.

The proposed amendment's provisions do not have a basis in science or fact and thus in no way serve to protect Taiwan's food supply. If passed, this amendment would represent a new barrier to U.S. beef exports to Taiwan, and would constitute a unilateral abrogation of a bilateral agreement concluded in good faith by the United States with Taiwan just two months ago. The Taiwan authorities should consider very carefully the impact that passage of the amendment in its current form would have on Taiwan's reputation as a reliable trading partner and responsible member of the international community. Science and facts—not politics or hyperbole—should govern our trade and economic relations.

The United States has implemented a comprehensive set of measures, regulations, and practices that are science-based, consistent with the guidelines of the World Organization for Animal Health (OIE) for minimizing the risk posed by BSE. The OIE is recognized by the World Trade Organization (WTO) as the relevant standard-setting body for regulations relating to animal health. These measures allow us to assure consumers in the United States, Taiwan and elsewhere that U.S. beef and beef products—including offals and ground beef—are safe. Millions of American families enjoy these products every day.

We have worked closely with Taiwan to provide all information necessary for Taiwan to fully evaluate these measures in the preparation of the Department of Health's final risk assessment, which determined that U.S. beef and beef products are safe. In the interests of science-based trade with Taiwan, the United States has provided research, data, scientific experts, technical assistance, as well as detailed information regarding U.S. risk mitigation measures, all of which have underscored the safety of the relevant U.S. beef and beef products.

After over two years of extensive negotiations and scientific and technical exchanges, we concluded an agreement, the “Protocol of Bovine Spongiform Encephalopathy (BSE)-Related Measures for the Importation of Beef and Beef Products for Human Consumption from the Territory of the Authorities Represented by the American Institute in Taiwan (AIT),” on expanded market access for U.S. beef and beef products. The Protocol is science-based, consistent with the OIE guidelines, the domestic legal obligations of both sides, as well as the findings of Taiwan's own risk assessment. The Protocol thus provides further assurances that U.S. beef and beef products to be exported to Taiwan—which are the same products that are consumed by Americans at home—are safe.

This is a serious matter that concerns us greatly and we are monitoring the legislative process very closely.