Details of President's 2010 Trade Policy Agenda and Annual Report

(See ITT's Online Archives or 03/02/10 news, 10030210, for BP summary. See today's ITT, 10030515, for BP summary of USTR Kirk's testimony regarding the 2010 trade agenda.)

The following summary highlights aspects of these documents.

U.S. Wants Market Access from Doha, Stronger Offers from China, Brazil, India

According to the trade policy agenda, the U.S. is working toward completion of the World Trade Organization's Doha round, but it is seeking an ambitious and balanced agreement, not just "any agreement."

To ensure Doha's success, there should be meaningful market access commitments in all three core market access areas: agriculture, goods, and services. In addition, the key advanced developing countries like China, India, and Brazil should take on the additional responsibilities that come with their increased influence in the global economy and make commitments that result in meaningful new trade flows.

More specificity needed in offers. The trade policy adds that the value of what the U.S. would give up in market opening along with a reduction of U.S. agriculture support is well-known and easily calculable. In contrast, the value of new opportunities the U.S. would receive remains vague because of the broad flexibilities available to key emerging markets.

Need sector negotiations, improved offers in services. The U.S. also believes that the negotiations could be advanced through sector specific tariff liberalization negotiations (e.g., chemicals, electronics, health care products, industrial machinery) and improved packages in services (providing new market access in key infrastructure services sectors such as financial services, information and communications technology, distribution, energy and express delivery).

Still Working on Pending FTAs, Will Submit for Approval if Resolved

The trade policy states that the Administration continues to believe that "proper" resolution and implementation of Free Trade Agreements with Panama, Colombia and Korea can bring significant economic and strategic benefits. However, there have been serious questions on some aspects of these pacts, and the U.S. is continuing its engagement with the Governments of Panama, Colombia, and Korea on these issues.

Panama tax & labor issues. With Panama, the U.S. is tackling issues involving reform of its labor regime to achieve consistency with the pending trade agreement and is pursuing an understanding on tax transparency rules.

Colombia labor & union issues. The Administration has begun working with Colombia to assess and improve the labor code and the measures to address violence against labor union officials to ensure that union rights in that country can be fully and freely exercised.

Korea auto and beef issues. With Korea, the Administration is determining how best to address outstanding issues, particularly related to automobiles and beef, in light of the recent agreement between President Obama and President Lee to work together to move the agreement forward.

If these outstanding issues can be successfully resolved, the U.S. will work with Congress on a timeframe to submit them for Congressional consideration.

Improve and Better Focus GSP & Preference Programs on Poorest Countries

The Administration will continue to work with the Congress and other stakeholders to implement and improve trade preference programs, such as the Generalized System of Preferences (GSP) and the African Growth and Opportunity Act (AGOA), and to better focus such benefits on the poorest countries.

Even as the U.S. retains its role as the world's largest donor of "aid for trade," countries benefiting from preference programs must also make the critical reforms and investments needed to diversify their exports and improve their competitiveness in the U.S. as well as regional and global markets.

Emphasis in 2010 Will be on Asia-Pacific and Large Emerging Markets

As a region, the Asia-Pacific will weigh much more prominently in U.S. trade and world economic activity in the future, and it will take multiple initiatives to maximize the opportunities for the region. In addition, large emerging markets such as China, India, Brazil, and Russia will figure prominently in the future.

Work with China Should Focus on Industrial Policies, Transparency, IPR, Etc.

The report points to some areas of progress with China, but also identifies many areas for improvement, including: (i) industrial policies such as indigenous innovation and steel which involve substantial government involvement, contributing to production overcapacity and unnecessary trade frictions; (ii) transparency; (iii) a greater understanding of best practices for intellectual property protection, the setting of industry standards, and government procurement practices. (iv) etc.

Will Work with NAFTA Governments to Reduce Regulatory Differences

With all NAFTA commitments to eliminate duties and quotas now fully phased in, regulatory cooperation is the next big opportunity to facilitate trade in North America and increase global competitiveness. The three NAFTA governments have agreed to focus in 2010 on cooperating to reduce unnecessary regulatory differences on matters such as standards and technical regulations.

USTR to Report and Act on New SPS, Technical Trade Barriers Abroad

Among other things, it states that in 2010, USTR will report and act on new measures instituted in 2009 to spot and address trade barriers that particularly affect U.S. agricultural producers and manufacturers, such as sanitary and phytosanitary measures and technical barriers to trade.

Fully Enforce Labor and Environmental Rights in FTAs

The U.S. will enforce fully labor and environmental rights specified in its trade agreements, including through dispute settlement as necessary.

President's 2010 Trade Policy Agenda and 2009 Annual Report available at http://www.ustr.gov/2010-trade-policy-agenda

USTR comments (posted 03/01/10) available at http://www.ustr.gov/about-us/press-office/press-releases/2010/march/kirk-comments-2010-trade-policy-agenda