USTR Describes New Cotton & Other Trade Initiatives for LDCs
The Office of the U.S. Trade Representative has announced new initiatives, mostly related to textile and apparel, to boost trade and investment opportunities for least developed countries (LDCs). The announcement was made in advance of the eighth Ministerial Conference of the World Trade Organization December 15-17, where certain limited proposals designed to help LDCs may be approved. Other countries such as China and the European Union have also recently announced support for trade initiatives involving LDCs.
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Wants to Extend AGOA 3rd Country Fabric/Yarn TPL Sublimit to Sept 2015
According to USTR, the U.S. Administration will work energetically with Congress to enact legislation extending the Tariff Preference Level sublimit under the African Growth and Opportunity Act (AGOA) for apparel made from third country fabric or yarn to September 2015, thereby sustaining existing benefits available to African exporters of apparel. (See ITT’s Online Archives 11121405 for summary of USTR wanting to extend this TPL sublimit from September 2012 to September 2015.)
Taking Steps to Make LDC Upland Cotton Fiber Duty-Free & Quota-Free
The U.S. is also taking new steps to provide duty-free, quota-free treatment for imports of Upland cotton fiber from LDCs. First, it will launch the review process to consider adding Upland cotton fiber to the list of products eligible for duty-free treatment for LDCs through GSP. Second, the Administration will seek Congressional action to provide quota-free access for LDCs on all Upland cotton fiber tariff lines. USTR states that these steps, combined with current historically low U.S. subsidies for domestic cotton production, will contribute measurably to the viability of export-oriented cotton production in West African countries and other LDCs.
Plans to Provide up to $16M for Cotton Development in C-4 Countries
The U.S. plans to introduce a follow-on program to the support it has been providing on cotton in the C-4 countries (Benin, Burkina Faso, Chad, Mali) under the U.S. Agency for International Development’s (USAID’s) West African Cotton Improvement Program. This new cotton assistance program for the C-4 countries, which will be introduced upon the expiration of the existing program in April 2012, could provide up to $16 million over four years to encourage debt and equity investments in small- and medium-sized enterprises operating in agricultural value chains in West Africa.
Launching USAID Program to Improve LDC Utilization of U.S. Trade Preferences
USTR states that as a complement to the extensive preferential market access for LDCs that is provided through U.S. trade preference programs, such as the Generalized System of Preferences (GSP), the U.S. is launching a new USAID program to provide technical assistance aimed at helping LDCs make the most of U.S. trade preferences.
U.S. Supports WTO Initiatives on TRIPS Flexibility, Preferential Service Treatment
In addition, the U.S. says it welcomes the (advance) Decisions of the 8th Ministerial Conference on issues of importance to LDCs regarding WTO accessions, flexibility in implementation of the WTO TRIPs (Trade Related Aspects of Intellectual Property Rights) agreement by LDCs, and a waiver enabling developed countries to extend preferential treatment to services exports of LDCs.
(See USTR notice for information on other U.S. initiatives taken earlier in 2011 to boost trade partnerships with LDCs such as the new African Competitiveness and Trade Expansion Initiative, USAID’s Partnership for Trade Facilitation, etc.)
China Announced Duty-Free, Quota Free Access for 97% of LDC Exports
There have been similar announcements by other countries. For example, Chinese President Hu announced at the November 2011 Cannes G-20 Summit that China will provide duty and quota free market access to 97% of exports from LDCs.
EU Announced Support of Preferential Services Treatment for LDCs
The European Union also announced on December 2, 2011 that it would support a waiver enabling WTO Members to grant preferential treatment to services and service suppliers of LDCs. (here)
(See ITT’s Online Archives 11060123 and 11072624 for summaries of a proposal to put LDC issues in a “fast lane” for consideration during the December Ministerial meeting and the failure of WTO members to reach a comprehensive agreement on LDCs and other issues in time for the December Ministerial.
See ITT’s Online Archives 11062314 for summary of USTR asking the ITC to analyze the effects of providing duty-free, quota free market access to LDCs.)
Additional USTR information, dated 12/14/11, available here.
WTO info on the Dec. 15-17, 2011 Ministerial available here.