The U.S. and Myanmar (Burma) signed a Trade and Investment Framework Agreement May 21, which includes commitments from both countries to improve worker rights and promote development, the U.S. Trade Representative’s office said. The agreement is a stage for ongoing dialogue and cooperation on trade and investment issues, as well as Myanmar’s ongoing reforms. “Economic reforms and trade are mutually supportive,” Acting USTR Demetrios Marantis said in a statement. “Stronger institutions, transparency, and rule of law create stronger foundations for commercial transactions, trade and investment.”
U.S. Trade Representative nominee Michael Froman will shed his investments in various Citigroup funds within 90 days of his potential confirmation as USTR. Froman reported his investments, assets and which ones he intended to divest in May 6 submissions to the Office of Government Ethics. Froman said he will divest his interests in Citigroup Capital Partners I LP -- which he listed as between $1,001-$15,000 -- and Citigroup Employee Fund of Funds LP, which are between $50,001 and $100,000. Froman will also get rid of his interests in Citigroup Capital Partners II and CVC International Growth Partnership (Employee) II LP, each one estimated at between $500,001 and $1 million. Froman worked at Citigroup from 1999 to 2009 (see 13050221 for more on his background).
Continuation of benefits for Ecuador under the Andean Trade Preference Act stimulated a host of comments from industry: influential business groups such as the Chamber of Commerce urging against it, citing Ecuador’s “flouting” of international commitments, while import and export reliant businesses warned of job and revenue losses if Ecuador’s benefits expire. Tangled in the debate is also a decades-long case between Chevron and indigenous Ecuadorians over pollution of the country’s rain forest; and claims that the company wants to suspend U.S.-Ecuadorian trade relations as a punishment for the separate legal dispute. The comments, 117 in all, will be used to prepare a June 30 report the U.S. Trade Representative will submit to Congress. AT PA is set to expire this July (see 13040509 for more on the original Federal Register notice).
The U.S. Trade Representative is seeking comments on the World Trade Organization’s dispute settlement panel regarding Indonesia’s importation of horticultural and animal products. The U.S. claims Indonesia imposes burdensome and harmful restrictions on the import of such products (see 13041202). USTR will accept comments received during the entire course of the dispute settlement, but comments should be submitted by June 2 to assure timely consideration, USTR said.
The U.S. requested consultations with Bahrain over concerns about labor practices in violation of the U.S.-Bahrain Free Trade Agreement, the U.S. Trade Representative announced May 7. The consultations stem from a December 2012 Department of Labor report, conducted after the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO) alleged Bahrain “acted inconsistently with its labor obligations under the FTA in response to civil unrest and national strikes in early 2011,” USTR said. The DOL report said that Bahrain took import steps to address labor issues, but the U.S. should still request FTA labor consultations to develop a plan with Bahrain to “address remaining concerns,” USTR said.
The U.S. Trade Representative’s office is seeking public comments on Japan’s potential entry into the Trans-Pacific Partnership agreement, including on the reduction and elimination of tariffs or non-tariff barriers for articles from Japan listed in the Harmonized Tariff Schedule. The comments -- along with those at a July public hearing -- will help USTR develop its negotiating objectives with Japan, both in the TPP and in bilateral talks.
The U.S. Trade Representative named Ukraine its first Priority Foreign Country in seven years, while citing significant progress on copyright issues in Canada and growing concerns over trade secret theft in China, in the agency’s 2013 Special 301 review process. The Special 301 report, an annual look at intellectual property rights protection and enforcement, placed 41 countries on one of three watch lists. The U.S. can initiate World Trade Organization dispute settlement proceedings or eliminate tariff preferences for countries on the lists. Read the complete report (here).
Trans Pacific Partnership countries formally agreed to bring Japan into the regional trade talks, provided each country successfully concludes its respective domestic procedures, TPP ministers announced April 20. The group met on the margins of the Asia-Pacific Economic Cooperation meeting. Negotiators will be directed to accelerate progress on the difficult sections of the agreement -- including intellectual property, state-owned enterprises, government procurement and the environment -- according to a statement from TPP ministers. Japan’s entry into the talks boosts the TPP’s overall potential, Acting U.S. Trade Representative Demetrios Marantis said in a statement (here). He said USTR “looks forward to consulting with our Congress and our stakeholders” as countries look to wrap up TPP talks this year.
The U.S. Trade Representative is beginning reviews to consider designating Myanmar (Burma) and Laos as Generalized System of Preferences beneficiary developing countries. Myanmar had its GSP eligibility withdrawn in 1989 because of worker rights violations, while Laos has never been considered for eligibility for GSP benefits. USTR’s review will also address whether the countries should be designated as least-developed beneficiary developing countries under GSP.
The U.S. “successfully” completed bilateral consultations with Japan on its entry into the Trans-Pacific Partnership, and supports Japan’s entry in the agreement pending a consensus vote among current TPP members, said Acting U.S. Trade Representative Demetrios Marantis April 12. The two countries concluded “a robust package of actions and agreements with Japan in the automotive and insurance sectors, as well as other non-tariff measures,” Marantis said in a statement. U.S. lawmakers initially expressed concern about Japan joining the TPP, many citing the country’s restrictive auto trade (see 13031523). That hasn't changed with this announcement.