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Volume 16, Issue 190
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Wednesday, September 23, 2009
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Prospects for Russia’s Accession to WTO Remain Uncertain
Prospects for Russia’s accession to the World Trade Organization remain unclear after U.S. and Russian officials discussed the matter Sept. 21. Moscow’s 16-year-old bid to join the WTO appeared to move forward earlier this year when U.S. and European officials said progress had been made and the process could be finalized by the end of 2009. Shortly thereafter, however, Russian Prime Minister Vladimir Putin made a surprise announcement that Russia was abandoning its solo bid and would now seek to join the WTO a part of a customs union with former Soviet republics Belarus and Kazakhstan. In the months since, there have been conflicting reports as to whether Moscow does indeed intend to take such an approach, and remarks made by top Russian officials recently have done little to clarify the issue.
According to a press release from the Office of the U.S. Trade Representative, USTR Ron Kirk and Russia’s First Deputy Prime Minister Igor Shuvalov discussed a range of multilateral and bilateral trade issues in Washington, D.C., Sept. 21, including concerns regarding U.S. exports of agricultural products, Russia’s protection of intellectual property rights and licensing procedures for certain information technology products. With respect to Russia’s WTO accession, Kirk welcomed “the prospect of renewed engagement with Russia … following a period of uncertainty regarding Russia’s intentions” and said the U.S. “continues to support Russia’s individual accession”; i.e., not as part of a customs union with Belarus and Kazakhstan. Kirk said the U.S. “will continue to provide constructive support to achieve that goal” but added that “progress in these multilateral negotiations has always depended and will still depend on Russia’s dedication and work toward that end.”
Kirk’s comments were more cautious than those of Shuvalov, who suggested that there are only a few outstanding issues on which the two sides could quickly work out a compromise. In particular, he cited IPR, where Russian lawmakers are moving to revise laws to address U.S. concerns on piracy; sanitary and phytosanitary regulations, particularly restrictions on Russian imports of U.S. meat; export controls on encryption technology; and the treatment of Russian state-owned enterprises in U.S. courts. “We believe ... we can finalize these issues very quickly, maybe a few weeks,” Shuvalov stated, and Monday’s talks with Kirk “let us think that we can achieve our accession, maybe next year, if we all work together.” However, Inside US Trade pointed out that these are not the only issues left to be resolved for Russia’s accession bid to go forward, as other countries have raised concerns as well.
While Shuvalov also reiterated that Russia wants to join the WTO in conjunction with Belarus and Kazakhstan, with whom it will establish a customs union effective Jan. 1, 2010, he appeared to leave open the possibility that this may not happen. According to a CongressDaily article, Shuvalov “said the three countries are applying separately, but they expect their accession would be approved at the same time.” Inside US Trade reports, however, that Shuvalov “said that the three nations have agreed to form a single negotiating team headed by lead Russian WTO negotiator Maxim Medvekov to ‘synchronize’ their accessions.” A Bloomberg News article cited Shuvalov as saying that while Russia wants to join the WTO “on the same terms and at the same time as [the] other former Soviet republics,” it is “possible that the leaders may change their plans.”
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Canada Considers Further Tariff Relief on Machinery, Equipment, Industry Inputs
Canada’s Department of Finance is soliciting public comments by Nov. 6 on the government’s intention to eliminate all remaining tariffs on imported machinery and equipment and manufacturing inputs used by Canadian industry. This proposal follows Ottawa’s decision in its 2009 budget to eliminate tariffs on a wide range of machinery and equipment, which is expected to lower business costs by around $440 million over five years. The proposed additional tariff elimination is intended to continue helping Canadian businesses lower their production costs, enhance their productivity and improve their overall competitiveness.
The specific items on which the Department of Finance is proposing to eliminate existing most-favored-nation tariff rates are listed in the attached document. The department is also interested in views on the timeframe over which the current duty rates should be eliminated, which could be as long as five years.
Source Document 1...
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China Appeals WTO Ruling on Media Distribution Restrictions
China has filed an appeal of a recent decision by a World Trade Organization dispute settlement panel that largely upheld a U.S. challenge to Chinese restrictions on the importation and distribution of copyright-intensive products such as films, DVDs, music, books and journals. The U.S. argued that these restrictions drive up the price of legitimate goods and increase demand for pirated versions, which are rampant in China and estimated to cost U.S. producers billions of dollars in lost profits annually. A more detailed description of the WTO ruling can be found here. A decision by the WTO Appellate Body is expected by the end of 2009.
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USTR Launches Annual Review of AGOA Country Eligibility
The Office of the U.S. Trade Representative has announced that the Trade Policy Staff Committee’s African Growth and Opportunity Act Implementation Subcommittee is seeking written public comments by Oct. 19 for its annual review of the eligibility of sub-Saharan African countries to receive the benefits provided under AGOA. Comments received will be considered by the TPSC in developing country eligibility recommendations to the president and, if related to child labor criteria, by the Department of Labor in the preparation of its report on child labor.
Under AGOA, the president may designate a sub-Saharan African country as eligible for duty-free treatment for certain additional products under the Generalized System of Preferences as well as for the preferential treatment AGOA provides for certain textile and apparel articles if that country meets the statutory eligibility criteria. The president is required to monitor and annually review the progress of each AGOA beneficiary country in meeting the eligibility criteria in order to determine whether it should continue to be eligible, as well as whether each SSA country that is currently not an AGOA beneficiary should be designated as such. If the president determines that an AGOA beneficiary country is not making continual progress in meeting the eligibility requirements, the designation of that country as an AGOA beneficiary must be terminated.
The 40 countries eligible for AGOA in 2009 are Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Chad, Comoros, Republic of Congo, Democratic Republic of Congo, Djibouti, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, South Africa, Swaziland, Tanzania, Togo, Uganda and Zambia.
The following SSA countries are not currently designated as AGOA beneficiaries: Central African Republic, Cote d’Ivoire, Equatorial Guinea, Eritrea, Mauritania, Somalia, Sudan and Zimbabwe.
Source Document 1...
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DOC: Export Control Reform Talks; Foreign Regulatory Changes
Commerce, Defense Secretaries Discuss Export Control Reform. According to a Department of Commerce press release, Commerce Secretary Gary Locke met with Defense Secretary Robert Gates Sept. 22 to discuss the importance of considering improvements to the U.S. export control system that will help make U.S. exporters more competitive. The two officials “agreed to continue to work together with their counterparts at other cabinet agencies toward these important reforms,” the press release stated, and “plan to meet again in the next few weeks with fellow administration officials to address their progress.”
This week’s talks appear to be part of a broad-based interagency review of the U.S. export control system, which was launched by the White House Aug. 13. The aim of this review is to consider reforms to the system that would enhance U.S. national security, foreign policy and economic security interests. The administration’s review was announced just weeks after Secretary Locke told the trade community that undertaking a review of export controls is one of his top five priorities and that he had already instructed the Bureau of Industry and Security to start examining the entire U.S. export control system. In addition, House Foreign Affairs Committee Chairman Howard Berman, D-Calif., said last month that he has launched his own review of U.S. export controls on dual-use goods and hopes to introduce in early 2010 a new Export Administration Act that will overhaul these controls.
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Foreign Regulatory Changes That Could Affect U.S. Exports. According to the National Institute of Standards and Technology, the WTO has been notified by the following countries of proposed regulatory changes that may affect U.S. exports of the products indicated. More detailed information on the nature of the proposed changes can be accessed on the NIST Web site.
• Bahrain – oil of sweet orange
• Brazil – sunbath beds
• Trinidad and Tobago – hand dishwashing detergent
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ITC Issues General Exclusion Order in Trademark Investigation of Cigarettes
In investigation 337-TA-643 of certain cigarettes and packaging thereof, the International Trade Commission has determined that one respondent has violated 19 USC 1337 by selling for importation into the U.S. gray market cigarettes that infringe certain trademarks. As a result, the ITC has issued a general exclusion order prohibiting the unlicensed entry of certain branded cigarettes that (a) infringe one or more of the specified trademarks and (b) are materially different from cigarettes manufactured by or under authority of the complainant for sale and use in the U.S. Following this action, this investigation has been terminated.
Source Document 1...
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USDA Removes Restrictions on Poultry Imports from German, British Regions
The Department of Agriculture’s Animal and Plant Health Inspection Service has issued notices that it will remove certain restrictions on imports of live birds, poultry carcasses, parts of carcasses and eggs (other than hatching eggs) of poultry, game birds or other birds from the German state of Saxony and Suffolk and Norfolk counties in England, effective Oct. 8. This action follows APHIS’ conclusion that domestic poultry in these regions is no longer affected with the H5N1 subtype of highly pathogenic avian influenza. APHIS has determined that German and British animal health authorities were able to effectively control and eradicate HPAI H5N1 in domestic poultry populations and have adequate control measures in place to rapidly identify, control and eradicate this disease should it be reintroduced in either wild birds or domestic poultry.
As a result of these determination, APHIS:
• will no longer require that processed poultry products from Saxony and Norfolk and Suffolk counties be accompanied by a Veterinary Service import permit and government certification confirming that the products have been treated according to APHIS requirements;
• will allow unprocessed poultry products from Saxony and Norfolk and Suffolk counties to enter the U.S. in passenger luggage; and
• will remove restrictions regarding Saxony and Norfolk and Suffolk counties, from which processed poultry products may originate in order to be allowed entry into the U.S. in passenger luggage.
However, APHIS adds, live birds from Saxony and Norfolk and Suffolk counties will still be subject to inspection at ports of entry as well as post-importation quarantines unless granted an exemption or destined for diagnostic purposes and accompanied by a limited permit.
Source Document 1...
Source Document 2...
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FMC: OTI License Revocations, Applicants; Agreements Filed
OTI Licenses Revoked. The Federal Maritime Commission has given notice that the following ocean transportation intermediary licenses have been revoked. A revocation may occur after a license is surrendered voluntarily by the OTI or for failure to maintain a valid bond.
• License #015131N: Formosa International Freight Forwarder Inc., Valley Stream, N.Y.
• License #021493NF: Global Express Consolidators Inc., Hialeah, Fla.
• License #019460NF: USCA Forwarding-Seabell Express Inc., Hoboken, N.J.
Source Document 1...
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OTI License Applicants. The Federal Maritime Commission has provided notice that the following applicants have filed applications for licenses as non-vessel-operating common carrier and/or ocean freight forwarder ocean transportation intermediaries. Persons knowing of any reason why any of these applicants should not receive a license are requested to contact the FMC.
• Tri-State Runner, Teaneck, N.J.
• Ocean Cargo Express Lines LLC, Garden City, Ga.
• Delvi Inc., Miami, Fla.
• KCTC International (America) Inc. d/b/a World Bridge Line, Gardena, Calif.
• G.P. Logistics Inc., Miami, Fla.
• Express USA Inc., Iselin, N.J.
• AME Logistics LLC, Jamaica, N.Y.
• AFC Worldwide Express Inc. d/b/a R+L Global Logistics, Kennesaw, Ga.
• Metro Freight Services Inc. d/b/a Maritime Express Lines (M.E.L.), Linden, N.J.
• Elzado Enterprises Incorporated, Leisure City, Fla.
• Poseidon Logistics Inc., Alhambra, Calif.
• SIRVA Move Management Inc., Fort Wayne, Ind.
• Joker Logistics USA Inc., Romulus, Mich.
• Global Transit Group LLC, Brooklyn, N.Y.
Source Document 1...
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Notice of Agreements Filed. The Federal Maritime Commission has issued notice that the following new or amended agreements have been filed. Interested parties may submit comments by Oct. 5.
• Cruise Lines International Association Agreement – The amendment would add Avalon Waterways and Paul Gauguin Cruises and delete Majestic America Line and Orient Lines as parties to the agreement.
• MSC/CMA CGM Cross Slot Charter Agreement – The agreement would authorize the parties to exchange slots in the trade between California ports and ports in China.
Source Document 1...
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