USTR Cites Progress, Problems in Technical, Sanitary and Foreign Trade Barriers
New free trade agreements, World Trade Organization initiatives and bilateral talks have reduced technical, sanitary and phytosanitary barriers to trade, the U.S. Trade Representative said in two reports sent to Congress and President Obama April 1. The report on Technical Barriers to Trade addresses unwarranted or overly burdensome technical barriers, making it difficult for American businesses to sell products abroad (read the report here). The Report on Sanitary and Phytosanitary (SPS) Barriers to trade focuses on unwarranted SPS barriers which block agricultural imports (here).
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The report on technical barriers said new free trade agreements with Korea, Colombia and Panama enhanced U.S. ability to ensure the countries standards-related measures are transparent and legitimate. The U.S. also worked through the World Trade Organization and the Asia-Pacific Economic Cooperation on technical barriers, including ones related to emerging green technologies.
The SPS report cited progress through agreements with various countries: Japan’s agreement to increase the maximum age of imported beef and beef products, a new food safety certificate to meet Chinese requirements for imported fish, and the elimination of an EU ban on lactic acid in beef. Both reports are released annually by the USTR.
Also on April 1, USTR released its annual National Trade Estimate Report on Foreign Trade Barriers (here). The report details, country by country, foreign barriers to U.S. exports, foreign direct investment and intellectual property rights protection. Some of the key country highlights in the report are:
- Canada: Trade deficit with the country was $32.5 billion in 2012, a $2 billion decrease from 2011. Trade barriers include the country’s agricultural supply management regimes, monopolistic marketing practices of the Canadian wheat board, and a delay in repealing standardized container size regulations for food products.
- China: The trade deficit increased by nearly $20 billion, to $351.1 billion in 2012. Though the country has progressed on tariff and quota reductions since joining the World Trade Organization, there remains a wide discretion in classifying goods, and a lack of implementing customs valuation measures. China has also refused trading rights for some specific industries, including steel, fertilizer and automotive parts manufacturing.
- Mexico: The country’s customs administrative procedures are inconsistent and untimely, and there are service barriers in sectors like telecommunications and broadcast. The trade deficit with the country was $61.3 billion, down $3.2 billion from 2011.