U.S. International Trade Commission

Address all communications to

Secretary to the Commission

United States International Trade Commission

Washington, DC 20436

COMMISSIONERS

Jennifer A. Hillman

Deanna Tanner Okun, Vice Chairman

Marcia E. Miller

Robert A. Rogowsky

Director of Operations

Robert B. Koopman

Director of Economics

Charlotte R. Lane

Daniel R. Pearson

Stephen Koplan, Chairman
U.S. International Trade Commission

Washington, DC 20436

Publication 3779 July 2005

www.usitc.gov

The Year in Trade 2004

Operation of the Trade Agreements Program

56th Report
This report was principally prepared by:

Country and Regional Analysis Division

Arona M. Butcher, Chief

William Greene and James Stamps Project Leaders

Nannette Christ, Joanne E. Guth, Magdolna Kornis, Selamawit Legesse,

Diane Manifold, Walker Pollard, Edward C. Wilson, and S. Michael Youssef

Office of the General Counsel

William W. Gearhart and Robin Turner

Office of Tariff Affairs and Trade Agreements

Terry O’Brien

Office of Investigations

Barbara Bryan and Mary Messer

Office of Unfair Import Investigations

Jeffrey Whieldon

Office of Industries

Kim Freund and Jackie Jones

Office of Information Technology Services

Barbara V. Bobbitt

Supporting assistance was provided by:

Patricia M. Thomas

Intern:

Shakira Van Savage
iii

Table of Contents

Page

Chapter 1. Introduction ..................................... 1-1

Purpose and organization of the report 1-1 ......................

Summary of trade agreements activities in 2004 1-1 ...............

Administration of U.S. laws and regulations 1-4 .................

World Trade Organization 1-6 .............................

Organization for Economic Cooperation and Development 1-7 .....

Asia-Pacific Economic Cooperation 1-7 .......................

U.S. free trade agreements 1-7 .............................

Bilateral trade relations in 2004 1-8 ...........................

European Union 1-8 ......................................

Canada. . . . 1-8 .........................................

Mexico. . . . 1-9 .........................................

China. . . . 1-9 ..........................................

Japan. . . . 1-9 ..........................................

Taiwan. . . . 1-9 .........................................

Korea. . . . 1-9 ..........................................

International economic environment in 2004 1-10 ..................

United States 1-10 ........................................

Canada. . . 1-11 ..........................................

Mexico. . 1-11 ...........................................

Europe. . . 1-11 ..........................................

Asia. . . . . 1-12 ...........................................

Sub-Saharan Africa 1-12 ...................................

U.S. trade in 2004 1-13 ......................................

U.S. merchandise trade 1-13 ................................

U.S. trade in goods and services 1-16 .........................

Chapter 2. Administration of U.S. Trade Laws and Regulations .... 2-1

Import relief laws 2-1 .......................................

Safeguard actions 2-1 ....................................

Adjustment assistance 2-2 ..................................

Trade adjustment assistance to workers 2-2 .................

Trade adjustment assistance to farmers 2-4 .................

Trade adjustment assistance to firms and industries 2-5 ........

Laws against unfair trade practices 2-6 .........................

Section 301 investigations 2-6 ...............................

Active cases in 2004 2-7 ...............................

Special 301 2-8 ......................................

Antidumping investigations 2-9 ..............................

Countervailing duty investigations 2-11 ........................
iv

Table of Contents—Continued

Page

Chapter 2. Administration of U.S. Trade Laws and Regulations—Continued

Reviews of outstanding antidumping and countervailing duty

orders/suspension agreements 2-12 ........................

Section 337 investigations 2-13 ..............................

Other import administration laws and programs 2-15 ...............

Tariff preference programs 2-15 .............................

Generalized System of Preferences 2-15 .......................

African Growth and Opportunity Act 2-17 ..................

Andean Trade Preference Act 2-21 ........................

Caribbean Basin Economic Recovery Act 2-22 ................

U.S. textile and apparel trade program 2-24 ......................

Uruguay Round Agreement on Textiles and Clothing 2-24 ..........

U.S. quota activity in 2004 2-25 ..............................

China textile safeguard actions 2-28 .......................

Trade preference programs 2-30 .............................

Free trade agreements 2-32 .................................

FTAs with Australia, Chile, Singapore 2-33 ..................

FTA with Central America and the Dominican Republic 2-33 .....

Qualifying industrial zones program for Israel and Egypt 2-35 ...

Extension and modification of temporary tariff relief for

wool articles 2-36 ...................................

U.S. textile and apparel imports in 2004 2-38 ...................

Chapter 3. Selected Trade Developments in the WTO, OECD,

and APEC .............................................. 3-1

World Trade Organization 3-1 ...............................

Doha trade negotiations in 2004 3-1 .........................

General Council on the Doha Work Program 3-1 ...........

Annex A - Framework for establishing modalities in

agriculture 3-2 ..................................

Annex B - Framework for establishing modalities in

market access for nonagricultural products 3-3 .........

Annex C - Recommendations of the special session

of the Council for Trade in Services 3-4 ...............

Annex D - Modalities for negotiations on trade

facilitation 3-4 ..................................

Developments during 2004 3-5 ..........................

Regular activities 3-7 .....................................

WTO Director-General 3-7 .............................

Membership 3-7 ......................................

Dispute settlement 3-7 .................................
v

Table of Contents—Continued

Page

Chapter 3. Selected Trade Developments in the WTO, OECD

and APEC—Continued

Organization for Economic Cooperation and Development 3-9 .......

OECD Trade Committee 3-9 ................................

Steel subsidy negotiations 3-12 ...............................

APEC. . . . . . . . 3-14 ........................................

Chapter 4. U.S. Free Trade Agreements ...................... 4-1

FTA negotiations during 2004 4-1 .............................

U.S.-Australia Free Trade Agreement 4-1 .....................

U.S.-Bahrain Free Trade Agreement 4-3 ......................

U.S. Free Trade Agreement with Central America and the

Dominican Republic 4-4 .................................

U.S.-Morocco Free Trade Agreement 4-5 ......................

U.S.-Andean FTA 4-6 .....................................

Free Trade Area of the Americas 4-7 .........................

Progress in other FTA negotiations 4-8 ........................

U.S.-Panama FTA 4-8 .................................

U.S.-FTAs with Oman and the United Arab Emirates 4-8 ............

North American Free Trade Agreement 4-8 ......................

Free Trade Commission 4-9 ................................

Commission for Labor Corporation 4-10 .......................

North American Agreement on Environmental Cooperation 4-11 ....

Commission for Environmental Cooperation 4-13 .............

Dispute settlement 4-14 .....................................

Chapter 11 dispute settlement developments 4-15 .............

Chapter 19 dispute panel reviews 4-16 .....................

Chapter 5. U.S. Relations with Major Trading Partners .......... 5-1

European Union 5-1 ........................................

Foreign sales corporations 5-2 ..............................

Background 5-2 ......................................

Developments during 2004 5-2 ..........................

Aircraft sector 5-3 .......................................

Background 5-3 ......................................

Developments during 2004 5-4 ..........................

Canada. . . . . . 5-6 .........................................

Agriculture 5-7 ..........................................

WTO dispute over softwood lumber products from Canada 5-7 .

2004 NAFTA panel decisions 5-8 ........................

Antidumping determination 5-8 .......................
vi

Table of Contents—Continued

Page

Chapter 5. U.S. Relations with Major Trading Partners—Continued .

2004 NAFTA panel decisions—Continued

Countervailing duty determination 5-9 .................

Threat of material injury determination 5-10 ..............

WTO dispute over Canadian Wheat Board and treatment

of imported grain 5-11 ...............................

WTO dispute over U.S. determination concerning hard red

spring wheat 5-12 ...................................

Intellectual property rights 5-12 ..............................

North American initiative 5-13 ...............................

Mexico. . . . . . . . 5-14 .......................................

Telecommunications services 5-15 ............................

NAFTA’s effects on Mexico’s agricultural imports from the

United States 5-17 ......................................

Imports of genetically modified corn 5-18 ......................

China. . . . . . . 5-19 .........................................

U.S. assessment of China’s WTO compliance in 2004 5-20 .........

Intellectual property rights 5-21 ...........................

Services 5-22 .........................................

Agriculture 5-22 .......................................

Industrial policies 5-23 ..................................

Japan. . . . . 5-23 ...........................................

Deregulation 5-24 ........................................

Beef. . . . . 5-25 ...........................................

Taiwan. . . . . 5-27 ..........................................

Intellectual property rights 5-27 ..............................

Korea. . . . . 5-28 ...........................................

Intellectual property rights 5-29 ..............................

Background 5-29 ......................................

Developments during 2004 5-30 ..........................

Sound recordings 5-30 ..............................

Korea Media Review Board 5-31 ......................

Beef . . . . . 5-31 ..........................................

Figures

1-1. U.S. merchandise trade with the world, by product sectors, 2004 1-14 . .

1-2. U.S. merchandise exports, imports, and trade balances with

major trading partners, 2004 1-15 ...........................
vii

Table of Contents—Continued

Page

Tables

1-1. Summary of 2004 trade agreements activities 1-2 .................

2-1. Results of petitions filed under the trade adjustment assistance

program, FY 2003 and FY 2004 2-3 .........................

2-2. Benefits and services provided under the trade adjustment

assistance program, FY 2003 and FY 2004 2-4 .................

2-3. Results of petitions filed under the trade adjustment assistance

program for farmers, FY 2003 and FY 2004 2-5 ...............

2-4. Active 301 cases in 2004 2-7 .................................

2-5. Antidumping duty orders that became effective during 2004 2-11 .....

2-6. Countervailing duty orders that became effective during 2004 2-12 ....

2-7. U.S. imports for consumption from GSP beneficiaries and the

world, 2004 2-18 .........................................

2-8. U.S. imports for consumption from ATPA countries, 2002-04 2-21 .....

2-9. U.S. imports for consumption from CBERA countries, 2002-04 2-24 ....

2-10. Textiles and apparel: U.S. imports from countries with which

the United States had quotas in 2004 2-27 .....................

3-1. WTO membership in 2004 3-8 ...............................

3-2. WTO observers in 2004 3-9 .................................

3-3. WTO dispute settlement consultations requested in 2004 3-10 .........

3-4. Draft OECD text of elements of an agreement to reduce or

eliminate trade-distorting subsidies in steel, April 2004 3-13 ........

4-1. Status of U.S. FTA negotiations, as of December 31, 2004 4-2 .......

4-2. U.S. trade with NAFTA partners, 2002-04 4-9 ...................

4-3. Active Article 14 files through 2004 4-12 .........................

4-4. Factual records published in 2004 under Article 15 of the

North American Agreement on Environmental Cooperation 4-13 ....

4-5. NAFTA Chapter 19 binational panels, active reviews in 2004 4-17 .....

Appendix

Statistical tables

A-1. Antidumping cases active in 2004, by USITC investigation

number A-3 ...........................................

A-2. Antidumping duty orders in effect as of Dec. 31, 2004 A-5 ........

A-3. Countervailing duty cases active in 2004, by USITC investigation

number A-12 ...........................................

A-4. Countervailing duty orders in effect as of Dec. 31, 2004 A-13 .......

A-5. Reviews of existing antidumping duty orders and suspension

agreements completed in 2004, by date of completion A15 ......

A-6. Section 337 investigations and related proceedings completed

by the U.S. International Trade Commission during 2004

and those pending on Dec. 31, 2004 A-16 ....................
viii

Table of Contents—Continued

Page

Appendix—Continued

Statistical tables—Continued

A-7. Outstanding Section 337 exclusion orders as of Dec. 31, 2004 A-19 . .

A-8. U.S. imports for consumption of leading GSP duty-free imports,

2004 A-22 ............................................

A-9. U.S. imports for consumption and imports eligible for GSP

treatment, by import categories under the Harmonized

Tariff Schedule, 2004 A-23 ...............................

A-10. U.S. imports for consumption under AGOA provisions,

by source, 2002-04 A-24 .................................

A-11. U.S. imports for consumption of leading imports under

AGOA, 2002-04 A-25 ...................................

A-12. U.S. imports for consumption under ATPA provisions, by

source, 2002-04 A-26 ...................................

A-13. U.S. imports for consumption of leading imports under ATPA,

2002-04 A-27 .........................................

A-14. U.S. imports for consumption under CBERA provisions, by

source, 2000-04 A-28 ...................................

A-15. U.S. imports for consumption of leading imports under

CBERA, 2002-04 A-29 ...................................

A-16. U.S. merchandise trade with the European Union, by SITC

codes (revision 3), 2002-04 A-30 ...........................

A-17. Leading exports to the European Union, by Schedule B

subheading, 2002-04 A-31 ...............................

A-18. Lading imports from the European Union, by HTS subheading,

2002-04 A-32 .........................................

A-19. U.S. merchandise trade with Canada, by SITC codes (revision 3),

2002-04 A-33 .........................................

A-20. Leading exports to Canada, by Schedule B subheading,

2002-04 A-34 .........................................

A-21. Leading imports from Canada, by HTS subheading, 2002-04 A-35 . .

A-22. U.S. merchandise trade with Mexico, by SITC codes

(revision 3), 2002-04 A-36 ................................

A-23. Leading exports to Mexico, by Schedule B subheading, 2002-04 A-37

A-24. Leading imports from Mexico, by HTS subheading, 2002-04 A-38 ...

A-25. U.S. merchandise trade with China, by SITC codes

(revision 3), 2002-04 A-39 ................................

A-26. Leading exports to China, by Schedule B subheading,

2002-04 A-40 .........................................

A-27. Leading imports from China, by HTS subheading, 2002-04 A-41 ....

A-28. U.S. merchandise trade with Japan, by SITC codes (revision 3),

2002-04 A-42 .........................................
ix

Table of Contents—Continued

Page

Appendix—Continued

Statistical tables—Continued

A-29. Leading exports to Japan, by Schedule B subheading,

2002-04 A-43 .........................................

A-30. Leading imports from Japan, by HTS subheading, 2002-04 A-44 ....

A-31. U.S. merchandise trade with Taiwan, by SITC codes

(revision 3), 2002-04 A-45 ................................

A-32. Leading exports to Taiwan, by Schedule B subheading,

2002-04 A-46 .........................................

A-33. Leading imports from Taiwan, by HTS subheading, 2002-04 A-47 ...

A-34. U.S. merchandise trade with Korea, by SITC codes

(revision 3), 2002-04 A-48 ................................

A-35. Leading exports to Korea, by Schedule B subheading,

2002-04 A-49 .........................................

A-36. Leading imports from Korea, by HTS subheading, 2002-04 A-50 ....
x

List of Frequently Used Abbreviations

and Acronyms

AD Antidumping

AGOA African Growth and Opportunity Act

APEC Asia-Pacific Economic Cooperation

ATPA Andean Trade Preference Act

ATPDEA Andean Trade Promotion and Drug Eradication Act

CBERA Caribbean Basin Economic Recovery Act

CBTPA Caribbean Basin Trade Partnership Act

CVD Countervailing Duty

DSB WTO Dispute Settlement Body

EU European Union

FSC Foreign Sales Corporation

FTA Free Trade Agreement

FTAA Free Trade Area of the Americas

FY Fiscal Year

GATS General Agreement on Trade in Services

GATT General Agreement on Tariffs and Trade

GDP Gross Domestic Product

GSP Generalized System of Preferences

HFCS High Fructose Corn Syrup

HTS Harmonized Tariff Schedule of the United States

IMF International Monetary Fund

IPR Intellectual Property Rights

LTFV Less Than Fair Value

NAFTA North American Free Trade Agreement

NTR Normal Trade Relations

OECD Organization for Economic Cooperation and Development

SITC Standard Industrial Trade Classification

SSA Sub-Saharan Africa

TAA Trade Adjustment Assistance

TRIPs Trade-Related Aspects of Intellectual Property Rights

TRQ Tariff Rate Quota

USITC United States International Trade Commission

USTR United States Trade Representative

WTO World Trade Organization
OMB No.: 3117--0188

07/05

ITC READER SATISFACTION SURVEY

The Year in Trade 2004

Operation of the Trade Agreements Program 56th Report

The U.S. International Trade Commission (USITC) is interested in your voluntary comments (burden less than 10 minutes) to help assess the value and quality of our reports, and to assist

in improving future products. Please return survey by facsimile (202-205-2340) or by mail to the

USITC, or visit the USITC Internet home page

(http://reportweb.usitc.gov/reader_survey/readersurvey.html) to electronically submit a Web version of

the survey.

(Please print; responses below not for attribution):

Your name and title:

Organization (if applicable):

Which format is most useful to you? - CD-ROM - Hardcopy - USITC Internet site

Circle your assessment of each factor below: SA = strongly agree, A = agree, N = no opinion,

D = disagree, or SD = strongly disagree.

Value of this report:

" Statistical data are useful SA A N D SD ..............................

" Other non-numerical facts are useful SA A N D SD ...................

" Analysis augments statistical data/other facts SA A N D SD ............

" Relevant topic(s)/subject matter SA A N D SD ........................

" Primary or leading source of information on this subject SA A N D SD . .

Quality of this report:

" Clearly written SA A N D SD .......................................

" Key issues are addressed SA A N D SD ...............................

" Charts and graphs aid understanding SA A N D SD ...................

" References cite pertinent sources SA A N D SD .......................

Other preferred source of information on this subject:

Specify chapters, sections, or topics in report that are most useful:

Identify any type of additional information that should have been included in report:

Suggestions for improving report:

Please update your mailing and electronic addresses below (voluntary)-

Mailing address:

City, state, and zip code:

E-mail address:
UNITED STATES

INTERNATIONAL TRADE COMMISSION

WASHINGTON, DC 20436

OFFICIAL BUSINESS

PENALTY FOR PRIVATE, USE $300

FOLD

NO POSTAGE

NECESSARY

IF MAILED

IN THE

UNITED STATES

BUSINESS REPLY MAIL

FIRST CLASS PERMIT NO. 12840 WASHINGTON, DC

POSTAGE WILL BE PAID BY ADDRESSEE

U.S INTERNATIONAL TRADE COMMISSION

500 E STREET, SW.

WASHINGTON, DC 20277--2840

ATTN:

OFFICE OF ECONOMICS

The Year in Trade 2004

Operation of the Trade Agreements Program

56th Report
1-1

CHAPTER 1

Introduction

Purpose and Organization of the Report

This report is the 56th in a series of reports submitted to the U.S. Congress under section

163(c) of the Trade Act of 1974 and its predecessor legislation.1 The report is one of the

principal means by which the U.S. International Trade Commission (USITC or the

Commission) provides Congress with factual information on trade policy and its

administration for calendar year 2004. The report also serves as a historical record of

the major trade-related activities of the United States to be used as a general reference

by government officials and others with an interest in U.S. trade relations. The trade

agreements program includes “all activities consisting of, or related to, the

administration of international agreements which primarily concern trade and which

are concluded pursuant to the authority vested in the President by the Constitution” and

congressional legislation.2

Chapter 1 summarizes selected trade agreements activities during 2004, as described

in more detail elsewhere in the report, and provides an overview of the international

economic environment during the year. Chapter 2 summarizes activities relating to the

administration of U.S. trade laws and regulations. Chapter 3 focuses on the activities of

the World Trade Organization (WTO), the Organization for Economic Cooperation

and Development (OECD), and the Asia-Pacific Economic Cooperation (APEC) forum.

Chapter 4 summarizes free trade agreements (FTAs) that the United States negotiated

or was negotiating during 2004. Chapter 5 focuses on selected trade-related activities

between the United States and its major trading partners-the European Union (EU),

Canada, Mexico, China, Japan, Taiwan, and Korea. The final section of the report

contains a statistical appendix.

Summary of Trade Agreements Activities in 2004

In 2004, U.S. trade agreements activities included the administration of U.S. laws and

regulations; U.S. participation in the WTO, the OECD, and APEC; U.S. negotiation of

and participation in FTAs; and bilateral developments with major trading partners.

Highlights of key trade agreements activities, including some that are described in

more detail in this report, are presented in table 1-1. A summary of the major

information contained in each chapter of the report follows.

1 Section 163(c) of the Trade Act of 1974 (19 U.S.C. 2213(c)) states that “the International Trade

Commission shall submit to the Congress at least once a year, a factual report on the operation of the

trade agreements program.”

2 The White House, Executive Order No. 11846, Mar. 25, 1975.
1-2

Table 1-1

Summary of 2004 Trade Agreements Activities

Date Event

January

8 USTR announces it will place Korea on the section 301 Priority Watch List for 2004

because of increased piracy of online music in Korea.

11 USTR Zoellick sends an open letter to 146 trade ministers regarding how to advance the

Doha trade negotiations during 2004.

19 The WTO Appellate Body upholds dispute panel findings that Canadian stumpage

programs are a subsidy for the Canadian lumber industry under the WTO Agreement

on Subsidies and Countervailing Measures.

26 The United States and Bahrain begin FTA negotiations.

28 Draft text of the U.S. FTA with Central America (Costa Rica, El Salvador, Guatemala,

Honduras, and Nicaragua) is made public.

February

8 The United States and Australia complete FTA negotiations.

12 President Bush notifies Congress of his intention to begin FTA negotiations with Thailand.

13 President Bush notifies Congress of his intention to enter into an FTA with Australia.

20 President Bush notifies Congress of his intention to enter into FTA with the Central

American countries.

27 The United States and the European Union (EU) sign a mutual recognition agreement on

marine equipment.

March

1 EU imposes tariffs of 5 percent on selected U.S. products in response to a WTO ruling on

the U.S. foreign sales corporation/extraterritorial income (FCS/ETI) tax regime.

2 The United States and Morocco complete FTA negotiations.

3 Draft text of the U.S.-Australia FTA is made available to the public.

8 President Bush notifies Congress of his intention to enter into an FTA with Morocco.

15 The United States and the Dominican Republic complete FTA negotiations, and announce

that the Dominican Republic would be included in FTA with the Central American

countries.

15 The United States and the United Arab Emirates (UAE) sign a bilateral trade and

investment framework agreement.

18 The United States requests WTO dispute-settlement consultations with China regarding

China’s value-added tax (VAT) rebate policy for integrated circuits produced in China.

19 The United States and Qatar sign a bilateral trade and investment framework

agreement.

25 President Bush notifies Congress of his intention to enter into an FTA with the Dominican

Republic.

April

2 A WTO dispute-settlement panel finds that Mexico’s international telecommunications

regime requiring U.S. carriers to connect with Mexican telecommunications providers

results in excess payments and uncompetitive practices.

2 Draft text of the U.S.-Morocco FTA is made available to the public.

6 A WTO dispute-settlement panel finds that certain sections of Canadian law regarding

grain imports and their distribution are inconsistent with Canada’s GATT obligations.

9 Draft text of U.S. FTA with Central America and the Dominican Republic is made public.

23 The United States and the Republic of Korea reach an agreement for Korea to end the

mandatory system of Wireless Internet Platform for Interoperability and to allow U.S.

systems to compete domestically in Korea.
1-3

Table 1-1-Continued

Summary of 2004 Trade Agreements Activities

April

23 The United States announces that it will ease its economic sanctions with respect to Libya.

26 The United States and Panama begin FTA negotiations.

May

10 The United States and Malaysia sign a bilateral trade and investment framework

agreement.

14 The United States pledges a donation of nearly $1 million ($994,100) to the WTO

Integrated Framework Trust Fund for trade-related technical assistance under the Doha

Development Agenda.

18 The U.S.-Australia FTA is signed.

18 The United States begins FTA negotiations with Andean countries Colombia, Ecuador,

and Peru. Bolivia is to join at a later stage.

27 The United States and Bahrain complete FTA negotiations.

28 The U.S. FTA with Central American countries (Costa Rica, El Salvador, Guatemala,

Honduras, and Nicaragua) is signed.

June

1 The United States and Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan

sign a regional trade and investment framework agreement.

10 The United States requests the establishment of a WTO dispute-settlement panel to

examine Mexican tax measures on soft drinks and other sweetened beverages that do

not use cane sugar.

15 The U.S.-Morocco FTA is signed.

28 The United States and Thailand begin FTA negotiations.

July

7 The United States and Oman sign a bilateral trade and investment framework

agreement.

8 The United States and China agree on full market access for U.S. integrated circuits and

the elimination of VAT refunds for semiconductors produced in China.

15 The United States and Mongolia sign a bilateral trade and investment framework

agreement.

19 The United States requests the establishment of a WTO dispute-settlement panel to review

if Japan has complied with earlier WTO rulings regarding restrictions on imported U.S.

apples. The United States also seeks authorization to impose trade sanctions against

Japan valued at $143.4 million.

August

3 President Bush signs legislation implementing the U.S.-Australia FTA.

5 The U.S. FTA with the Dominican Republic is signed, integrating that country into the U.S.

FTA with the Central American countries.

26 The United States and China agree on import regulations concerning soybean exports to

China.

September

8 A WTO dispute-settlement panel requested by Brazil finds that: (1) three U.S. export

credit guarantee programs are prohibited export subsidies; (2) the United States also

grants several other prohibited subsidies regarding cotton; and (3) U.S. domestic support

programs regarding cotton are also not protected by the Uruguay Round Agreements’

“peace clause” and so prejudice Brazil’s interests regarding cotton prices in the world

market.

14 The U.S.-Bahrain FTA is signed.
1-4

Table 1-1-Continued

Summary of 2004 Trade Agreements Activities

September

21 The United States requests WTO dispute-settlement consultations with the EU regarding a

lack of uniformity of customs laws and regulations among EU member states.

21 The United States and Afghanistan sign a bilateral trade and investment framework

agreement.

October

4 The United States announces a new initiative designed to fight trade in pirated and

counterfeit goods.

6 The United States announces that it has filed a WTO case against the EU regarding

government subsidies to the aircraft sector. Hours later, the EU announces the initiation of

a WTO case against the United States regarding U.S. aircraft sector subsidies.

12 The United States requests WTO dispute-settlement consultations with the EU regarding

government subsidies for large civil aircraft.

22 President Bush signs into law the American Jobs Creation Act which repeals the FSC/ETI

tax rules that the WTO found to be a prohibited export subsidy. Repeal ends retaliatory

tariffs introduced by the EU in March 2004 on certain U.S. manufactured products.

25 The United States and Uruguay sign a bilateral investment treaty.

November

15 President Bush notifies Congress of his intention to negotiate FTAs with Oman and the

UAE.

17 The United States and Australia exchange diplomatic notes certifying that each country

has completed its internal requirements to allow the FTA to enter into force on Jan. 1,

2005.

December

10 President Bush designates Burkina Faso as eligible for benefits under the African Growth

and Opportunity Act.

13 The United States, Egypt, and Israel sign a trade agreement that will create Qualified

Industrial Zones in Egypt, and allow for duty-free export of certain goods from Egypt that

contain inputs made in Israel.

21 The WTO Appellate Body circulates its report to the parties regarding the protection of

trademarks and geographical indications for agricultural products and foodstuffs that

the United States claims discriminate against U.S. products and producers.

30 The United States and Korea agree on a plan to allow greater market access for U.S.

rice exports.

Sources: Compiled by the Commission from information obtained from press releases from the

Office of the U.S. Trade Representative, U.S. Department of Commerce, U.S. Department of State,

and the White House; the World Trade Organization; and Washington Trade Daily/Inside U.S.

Trade.

Administration of U.S. Laws and Regulations

The following lists the principal developments in U.S. trade programs that occurred

during 2004:

S In the area of safeguards, the USITC conducted one China safeguard

investigation, and made a negative determination in that investigation. In the

one USITC China safeguard remedy recommendation pending before the

President at the beginning of 2004, the President decided not to apply a

safeguard measure. No new global or bilateral U.S. safeguard measures

were applied during 2004 under statutory provisions administered by the
1-5

USITC, and no U.S. safeguard measures were in effect during any part of the

year.3 No safeguard petitions were pending before the USITC, and no USITC

safeguard recommendations were pending before the President at the end of

2004.

S The number of Trade Adjustment Assistance to workers’ cases (under the

programs administered by the U.S. Department of Labor), including

completed certifications, partial certifications, and denied, terminated, or

withdrawn petitions, decreased from 3,589 cases in FY 2003 to 3,209 cases

in FY 2004. There were 148,011 workers certified (based on completed and

partial certifications) in FY 2004, a decrease from the 197,356 workers

certified in FY 2003.

S There were two active cases under section 301 administered by USTR. One

concerned the EU meat hormone directive and the second, intellectual

property protection in Ukraine. In the special 301 review, the United States

Trade Representative (USTR) noted that piracy persists and that in 2004

intellectual property rights (IPR) enforcement continued to be a problem for a

number of trading partners. In its review, USTR identified 52 countries that

deny adequate and effective IPR protection.

S Following final affirmative determinations by the Commission and the U.S.

Department of Commerce, the Commission instituted 22 new antidumping

investigations during 2004 and completed 32 investigations. Antidumping

duties were imposed as a result of affirmative determinations in 14 of those

completed investigations, on products from 7 countries.

S The Commission’s section 337 caseload continued to be dominated by

investigations involving complex technologies, particularly in the computer

and telecommunications fields. During 2004, there were 47 active 337

investigations and ancillary proceedings, 28 of which were instituted in 2004.

The Commission completed a total of 21 investigations and ancillary

proceedings under section 337 in 2004, including one bond forfeiture

proceeding and one advisory opinion proceeding relating to a previously

concluded investigation. Eight exclusion orders and 12 cease-and-desist

orders were issued during 2004.

3 However, an import licensing system provided for in the President’s March 2002 proclamation

imposing global safeguard measures on certain steel products remained in effect throughout the year.

The President had earlier, in December 2003, terminated the tariff and tariff rate quota measures that

were part of the safeguard measure. See President, Proclamation 7529 of Mar. 5, 2002, 67 FR 10553,

Mar. 7, 2002; and Proclamation 7741 of Dec. 4, 2003, 68 FR 68483, Dec. 8, 2003. The licensing system,

which was administered by the U.S. Department of Commerce, was terminated on Mar. 21, 2005. It was

replaced by a new program, also administered by Commerce, under different authority.
1-6

S The U.S. Generalized System of Preferences (GSP) program is currently

authorized through December 31, 2006. Several actions were taken under

GSP in 2004. On April 12, 2004, USTR requested public comments on the

possible withdrawal, suspension or limitation of GSP benefits with respect to

Bangladesh. On July 1, 2004, USTR initiated reviews to consider the

designation of Azerbaijan, Iraq, and Serbia and Montenegro as beneficiary

developing countries under GSP.

S On July 12, 2004, President Bush signed the African Growth and Opportunity

Act (AGOA) Acceleration Act of 2004, which extended preferential access

for certain products of eligible sub-Saharan African (SSA) countries from

2008 to 2015, and enhanced the benefits for eligible apparel imports under

AGOA. As of January 1, 2005, a total of 37 SSA countries met the AGOA

eligibility requirements, and 24 SSA countries were eligible for AGOA

apparel benefits.

S The Andean Trade Promotion and Drug Eradication Act is currently

authorized through December 31, 2006, for eligible imports from Bolivia,

Colombia, Ecuador, and Peru. U.S. imports from those countries increased by

33 percent to $15.5 billion in 2004 from $11.6 billion in 2003.

S In 2004, articles from 24 countries and territories in the Caribbean Basin and

Central America entered the United States free of duty or at reduced duties

under the Caribbean Basin Economic Recovery Act (CBERA) and the

expanded provisions of preferential tariff treatment afforded under the

Caribbean Basin Trade Partnership Act (CBTPA). U.S. imports under CBERA

with CBTPA totaled $10.8 billion in 2004, a small increase from imports

valued at $10.4 billion in 2003.

S In 2004, the United States had import quotas on textiles and apparel from 43

countries, 38 of which are WTO members and thus eligible for quota

liberalization on January 1, 2005, as required under the WTO Agreement on

Textiles and Clothing (ATC). These countries accounted for 69 percent ($58

billion) of U.S. imports of such goods in 2004.

World Trade Organization

At the WTO General Council meeting on August 1, 2004, WTO members adopted a

decision4 to refocus their attention on negotiations under the Doha Development

Agenda. The 2004 Decision addressed negotiations on agriculture; cotton;

nonagricultural market access; development issues including principles concerning

development, special and differential treatment, technical assistance, implementation,

4 WTO, Doha Work Programme-Decision Adopted by the General Council on 1 August 2004,

WT/L/579, Aug. 2, 2004, found at

http://www.wto.org/english/tratop_e/dda_e/draft_text_gc_dg_31july04_e.htm, retrieved Nov. 30,

2004.
1-7

other development issues, and the least developed countries; services; other

negotiating bodies, including the groups negotiating rules that encompass

antidumping and countervailing duties, trade and environment, IPR, dispute

settlement, and trade facilitation; the relationship between trade and investment,

interaction between trade and competition policy, and transparency in government

procurement; as well as other elements of the work program.

Organization for Economic Cooperation and

Development

The OECD Trade Committee met three times in 2004 and discussed the state-of-play in

the WTO Doha multilateral trade negotiations. At its April meeting, Members agreed

that the committee would continue to support the WTO negotiations through objective

and high-quality analysis. There was also agreement on several areas that were likely

to continue to receive particular attention, including the costs and benefits of trade

liberalization in goods and services; the costs and benefits of structural adjustment;

trade and investment among developing countries; special and differential treatment;

and outreach to non-members, among others. During June 28-29, 2004, OECD

Members held high level meetings on steel where they reaffirmed their commitment to

stronger subsidy disciplines in the global steel sector, although negotiations on

reducing or eliminating steel subsidies effectively remained at an impasse.

Asia-Pacific Economic Cooperation

In 2004, there were 21 member economies in APEC. At the 2004 annual APEC

Ministerial, Ministers addressed issues such as trade, security, transparency,

anti-corruption, human resource development, the knowledge-based economy, and

sustainable development. Ministers reaffirmed their commitments to achieving the

APEC Bogor Declaration goals of free and open trade and investment by 2010 and

2020, respectively.5

U.S. Free Trade Agreements

The U.S.-Chile FTA and the U.S.-Singapore FTA entered into force on January 1,

2004.6 Negotiations for the U.S.-Australia FTA were completed in 2004, and the FTA

entered into force on January 1, 2005. The United States completed negotiations for

FTAs with Bahrain, Central America (Costa Rica, El Salvador, Guatemala, Honduras,

5 For information on the Bogor Declaration, see USITC, The Year in Trade, OTAP, 1995, USITC

publication 2971, pp. 36-38 and USITC, The Year in Trade, OTAP, 1994, USITC publication 2894,

pp. 35-39.

6 Other U.S. FTAs in force are: the U.S.-Israel FTA (1985), the North American Free Trade

Agreement (NAFTA, 1994), and the U.S.-Jordan FTA (2000).
1-8

and Nicaragua) and the Dominican Republic, and Morocco during 2004, but those

FTAs did not enter into force during 2004. Also during 2004, the United States

launched FTA negotiations with the Andean countries (Colombia, Ecuador, and Peru,

with Bolivia as an observer), Panama, and Thailand. The United States continued

negotiations with countries of the Western Hemisphere toward the creation of the Free

Trade Area of the Americas and the countries of the South African Customs Union

(Botswana, Lesotho, Namibia, South Africa, and Swaziland). Also during 2004, the

President notified Congress of his intention to launch FTA negotiations with Oman and

the United Arab Emirates.

The year 2004 marked the tenth anniversary of the North American Free Trade

Agreement (NAFTA), which entered into force on January 1, 1994. With virtually all

tariffs and quotas on North American trade eliminated, the NAFTA Free Trade

Commission directed its energies during 2004 on ways to further integrate the NAFTA

economies.

Bilateral Trade Relations in 2004

European Union

The EU represents the largest trading partner of the United States. That EU position

strengthened in 2004 with enlargement of the EU to include 10 new central European

and Mediterranean countries on May 1, 2004. Major U.S.-EU bilateral developments

during 2004 included enactment of a new U.S. law, the Extraterritorial Income

Exclusion Act of 2000 (the EU had challenged the previous law as inconsistent with U.S.

WTO obligations) that brings the United States into conformity with a WTO ruling on

U.S. special tax treatment of foreign sales corporations. Also during 2004, the United

States and the EU held talks that resulted in a January 2005 bilateral agreement on the

terms for the negotiation of a permanent settlement regarding subsidies to the aircraft

sector.

Canada

Two-way trade between the United States and Canada was valued at over $1 billion a

day during 2004-the largest bilateral trade flow in the world between two individual

countries. U.S.-Canadian commercial relations are governed in large part by NAFTA.

Softwood lumber remained a high profile bilateral trade-related issue in 2004. Other

bilateral issues during the year included Canadian exports of hard red spring wheat,

and IPR protection in Canada.
1-9

Mexico

Mexico maintained its position in 2004 as the third-largest U.S. trading partner after

the EU and Canada, and before China. A long-running bilateral dispute regarding

telecommunications practices in Mexico was resolved in 2004 with the conclusion of a

WTO dispute settlement panel. Other issues during the year included bilateral trade in

sweeteners, a U.S. complaint to the WTO about Mexican dumping duties on U.S. beef

and long-grain white rice, Mexican concern about the U.S. delay in implementing

cross-border trucking provisions under NAFTA, and concerns in the Mexican

agricultural sector about U.S. agricultural exports.

China

The principal focus of the U.S.-China trade relationship in 2004 was China’s

compliance with the terms of its WTO accession agreement. Major areas of U.S.

concern were enforcement of intellectual property rights, services, agriculture, and

industrial policies. Other issues during the year included U.S. proceedings under two

separate safeguard mechanisms in China’s WTO accession agreement: the special

textile safeguard mechanism and the China-specific safeguard mechanism.

Japan

The United States and Japan continued bilateral discussions under the “U.S.-Japan

Economic Partnership for Growth.” Topics addressed in the discussions included

deregulation of the Japanese economy (including reforms in areas such as

telecommunications, information technologies, energy, medical devices and

pharmaceuticals, competition policy, transparency and other government practices,

legal system reform, commercial law revision, and distribution), and Japan’s

restrictions on beef imports.

Taiwan

The U.S.-Taiwan trade relationship in 2004 continued to focus on U.S. concerns about

Taiwan’s copyright law, trade in counterfeit goods (especially pharmaceutical

products), and deficiencies in Taiwan’s laws and enforcement aimed at preventing

unfair commercial use of pharmaceutical and agricultural chemical test data.

Korea

The U.S.-Korea trade relationship in 2004 focused on U.S. concerns about IPR

protection in Korea, particularly with respect to music piracy and piracy of U.S. motion
1-10

pictures. The United States and Korea also continued discussions on Korea’s

December 2003 ban on imports of U.S. beef; however, the Korean government did

not rescind the ban during 2004.

International Economic Environment in 2004

The world economy grew by 5.1 percent in 2004 compared with 4.0 percent in 2003.7

Continued global economic expansion in 2004 was supported by strong consumer

and investment spending and by accommodative monetary and fiscal policies

worldwide, despite the adverse impact of higher oil prices on oil-importing nations.8

An upturn in global trade flows in 2004 also boosted world growth. World trade

volume of goods and services grew by 9.9 percent in 2004 compared with 4.9 percent

in 2003.9 The global economic expansion in 2004 was led by strong growth in North

America, Asia, and several emerging markets and developing countries.

United States

Real U.S. gross domestic product (GDP) grew by 4.4 percent in 2004, compared with

3.0 percent in 2003. Core inflation remained subdued, increasing to 2.4 percent in

2004 (as measured by GDP domestic purchases) despite significantly higher energy

prices.10 U.S. economic growth continued to be driven by strong domestic demand and

aided by business sector productivity growth. The major contributors to the increase in

real GDP in 2004 were gross private domestic investment, which increased by 12.9

percent; exports, which increased by 8.1 percent; and personal consumption

expenditures, which increased by 3.8 percent.11 The U.S. current account deficit

reached a record 5.7 percent of GDP in 2004. The effects of depreciation of the U.S.

dollar on the current account deficit during 2004 were partially offset by strong

domestic demand and faster economic growth in the United States relative to growth in

major U.S. trading partners.12

7 IMF, World Economic Outlook, April 2005, table 1.1, p. 3.

8 Ibid., pp. 1 and 5.

9 Ibid., table 1.1, p. 3.

10 U.S. Department of Commerce, “Gross Domestic Product: Fourth Quarter 2004,” BEA 05-03,

found at www.bea.gov/bea/rels.htm. 11 Ibid.

12 IMF, World Economic Outlook, April 2005, pp. 2 and 20.
1-11

Canada

Canada’s real GDP grew by 2.8 percent in 2004, compared with 2.0 percent in

2003.13 Canada’s economy is highly dependent on trade and financial linkages with

the United States. Canadian economic growth in 2004 was favorably affected by the

U.S. and global economic expansion, low domestic interest rates, a rise in Canadian

personal consumption, and rising Canadian employment levels. Canadian exports

increased, benefitting from robust global demand, especially from the United States

despite the appreciation of the Canadian dollar. Higher world commodity prices for

major Canadian exports, particularly oil, boosted Canada’s current account surplus

to 2.6 percent of GDP in 2004.14

Mexico

Mexico’s real GDP grew by 4.4 percent in 2004, compared with 1.6 percent in

2003.15 Strong growth in exports to the United States, aided by increased U.S.

demand, along with rising domestic demand and improved labor productivity

contributed to Mexico’s broad-based recovery in 2004. As an oil exporter, Mexico

also benefitted from higher world oil prices during 2004. Mexico’s current account

deficit remained unchanged in 2004 at 1.3 percent of GDP.16

Europe

Real GDP growth for the European Union was 2.5 percent in 2004, compared with 1.2

percent in 2003.17 In the euro area,18 real GDP growth was 2.0 percent in 2004

compared to 0.5 percent in 2003. Euro area economic growth was dampened by

weakening domestic demand, high and volatile oil prices, and longstanding structural

weaknesses such as low productivity gains. Appreciation of the euro, which mitigated

the impact of rising oil prices, undercut the potential for export-led growth.19 In the

United Kingdom (UK), real GDP grew by 3.1 percent in 2004, compared to 2.2

percent in 2003. Strong domestic demand was a key factor contributing to robust

economic performance in the United Kingdom during 2004, as the UK economy is

estimated to have operated at or near full capacity during the year.20 Russia’s real

13 Ibid., table 1.1, p. 3.

14 Ibid., p. 25, and table 26, p. 239.

15 Ibid.

16 Ibid., p. 39, and table 31, p. 251.

17 Ibid., table 1.1, p. 3.

18 Euro area countries are: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy,

Luxembourg, the Netherlands, Portugal, and Spain. Denmark, Sweden, and the United Kingdom are EU

members but do not participate in the euro single currency. European Central Bank, “Background to the

Euro,” found at http://www.euro.ecb.int/en/what/system/ncbs.html, retrieved May 28, 2005.

19 IMF, World Economic Outlook, April 2005, p. 28.

20 Ibid., p. 30, and table 1.1, p. 3.
1-12

GDP growth was 7.1 percent in 2004, compared with 7.3 percent in 2003. Marginally

slower economic expansion in Russia was the result of lower oil production growth and

investment.21

Asia

China’s real GDP grew by 9.5 percent in 2004, compared with 9.3 percent in 2003.

China’s continued economic growth in 2004 was driven by strong domestic demand,

high levels of foreign and domestic investment, and strong export growth aided by real

depreciation of the Chinese currency.22 Japan’s real GDP grew by 2.6 percent in

2004, compared with 1.4 percent growth in 2003. Weak global demand for

information technology products undercut Japan’s export growth. Japan’s economy

continued to face the domestic economic challenges of high public debt, constraints

resulting from demographic pressures of an aging population, and sluggish business

activity.23 Among the newly industrialized economies, Korea’s real GDP grew by 4.6

percent in 2004, compared to 3.1 percent in 2003, and Taiwan’s real GDP grew by

5.7 percent in 2004, compared to 3.3 percent in 2003. The economies of Korea and

Taiwan both benefitted from strengthening domestic demand as well as increased

import demand from China.24

Sub-Saharan Africa

Real GDP growth in sub-Saharan Africa was 5.1 percent in 2004 compared to 4.2

percent in 2003.25 Underpinning that growth, in some countries, was the stronger

global economy and higher foreign demand for certain African commodities at higher

prices, improved macroeconomic stability and progress with structural economic

reforms including trade policy reforms and improved incentives for investments, and

the ending of several protracted armed conflicts. The countries with the largest net

gains were mostly oil exporters, followed by countries with substantial gains due to the

higher prices of other commodities. Non-oil-producing countries faced losses mainly

because of higher oil import prices.26

21 Ibid., pp. 44-45, and table 1.1, p. 3.

22 Ibid., pp. 30-31, and table 1.6, p. 33.

23 Ibid., pp. 30-31, and table 1.1, p. 3.

24 Ibid., pp. 33 and 35.

25 Ibid., p. 45, and table 1.1, p. 3.

26 Ibid., pp. 45-57.
1-13

U.S. Trade in 2004

U.S. Merchandise Trade

In 2004, U.S. exports of goods were valued at $819.0 billion, and imports of goods

were $1,470.5 billion, (figure 1-1).27 Slightly more than 40 percent of U.S. exports of

goods in 2004 consisted of capital goods, followed by industrial supplies (24.9

percent); consumer goods (12.6 percent); automotive vehicles (10.8 percent); and

foods, feeds, and beverages (6.9 percent). Industrial supplies accounted for 28.0

percent of total U.S. imports of goods, followed by consumer goods (25.4 percent);

capital goods (23.4 percent); automotive vehicles (15.5 percent); and food, feeds, and

beverages (4.2 percent).

Figure 1-2 shows U.S. merchandise exports, imports, and trade balances with major

trading partners.28 Leading U.S. exports to and imports from these major trading

partners are highlighted in appendix tables A-16 through A-36.29 The United States

recorded a $651.5 billion merchandise trade deficit with the world in 2004. The U.S.

trade deficit with China was $162.0 billion, or 24.9 percent of the total U.S. deficit.

NAFTA partners Canada and Mexico accounted for $110.7 billion, or 17.0 percent of

the total U.S. trade deficit. Canada accounted for $65.7 billion, or 10.1 percent of the

total U.S. deficit, and Mexico accounted for $45.0 billion or 6.9 percent of the total

U.S. deficit. The U.S. trade deficit with the EU-1530 totaled $104.5 billion, followed by

Japan at $75.2 billion, Korea at $19.9 billion, Taiwan at $12.9 billion, and Brazil at

$7.3 billion.

27 Based on seasonally adjusted end-use category Census data . The Census basis goods data are

compiled from the documents collected by the U.S. Customs Service and reflect the movement of goods

between foreign countries and the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands,

and U.S. foreign trade zones. U.S. Department of Commerce, U.S. Census Bureau, “Information on

Goods and Services,” found at

http://www.census.gov/foreign-trade/Press-Release/current_press_release/explain.pdf, retrieved

June 1, 2005.

28 Statistics on U.S. trade with major trading partners are not seasonally adjusted.

29 Statistics in figure 1-2 may not match with those in appendix tables A-16 through A-36 because of

adjustments made to the data.

30 The EU-15 comprises Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland,

Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom.
1-14

Other goods

Figure 1-1

U.S. merchandise trade with the world, by product sectors, 2004, seasonally adjusted, Census

basis billion dollars and percent of total

U.S. Exports -- $819.0 billion dollars

Note.-Because of rounding, figures may not exactly equal totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce; FT900-04-02, Dec. 2004 BEA 05-05.

Food, feeds and beverages

U.S. Imports -- $1,470.5 billion dollars

Consumer goods

(Billion dollars)

$102.8 (12.6%)

$56.3 (6.9%)

Industrial supplies

$203.6 (24.9%)

Capital goods

$88.2 (10.8%)

$331.1 (40.4%)

Automotive vehicles

$37.0 (4.5%)

Other goods

$50.5 (3.4%) Food, feeds and

$62.2 (4.2%)

Industrial supplies

$412.4 (28%)

Capital goods

$343.8 (23.4%)

$228.4 (15.5%)

Automotive vehicles

Consumer goods

$373.2 (25.4%)

beverages
1-15

Figure 1-2

U.S. merchandise exports, imports, and trade balances with major trading partners,

2004, not seasonally adjusted Census basis

--800

--600

--400

--200

0

200

400

600

800

1000

1200

1400

1600

EU 15 Canada Mexico Japan China Taiwan Korea Brazil World

Major trading partners

Billion dollars

EU (15) 168.5 273.0 -104.5

Canada 190.2 255.9 -65.7

Mexico 110.8 155.8 -45.0

Japan 54.4 129.6 -75.2

China 34.7 196.7 -162.0

Taiwan 21.7 34.6 -12.9

Korea 26.3 46.2 -19.9

Brazil 13.9 21.2 -7.3

World 819.0 1,470.5 -651.5

Exports Imports Trade balance

Exports

Imports

Trade Balance

Billion dollars

Note.-Statistics on U.S. trade with major trading partners uses not seasonally adjusted

Census basis data. Because of rounding, and omissions figures may not exactly equal

totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce; FT900,

BEA-04-04, Dec. 2004. Statistics may not match with data in the appendix due to certain adjustments.
1-16

U.S. Trade in Goods and Services

U.S. exports of goods and services, on a seasonally adjusted U.S.

balance-of-payments (BOP) basis,31 were valued at $1,146.1 billion in 2004,

compared with exports of $1,020.5 billion in 2003. U.S. imports of goods and services

on a seasonally adjusted BOP basis were valued at $1,763.9 billion in 2004,

compared with imports of $1,517.0 billion in 2003. The BOP adjusted U.S. trade deficit

on goods and services was $617.8 billion in 2004, up from a deficit of $496.5 billion in

2003.32

31 Goods on a Census basis (described above) are adjusted by the U.S. Department of Commerce,

Bureau of Economic Analysis to goods on a BOP basis to bring the data in line with the concepts and

definitions used to prepare the international and national accounts. These adjustments are done to

supplement coverage of the Census basis data, to eliminate duplication of transactions recorded

elsewhere in the international accounts, and to value transactions according to a standard definition. For

a more detailed discussion of the differences between BOP basis and Census basis data, see U.S.

Department of Commerce, U.S. Census Bureau, “Information on Goods and Services.”

32 U.S. Department of Commerce, Foreign Trade Statistics, Annual Trade Highlights, 2004

Highlights, http://www.census.gov/foreign-trade/statistics/highlights/annual.html, retrieved June 6.

2005.
2-1

CHAPTER 2

Administration of U.S. Trade Laws and

Regulations

This chapter surveys activities related to the administration of U.S. trade laws during

2004. It covers the following: the import relief laws; the unfair trade laws; certain other

trade provisions, including the U.S. Generalized System of Preferences (GSP), the

African Growth and Opportunity Act (AGOA), the Andean Trade Preference Act

(ATPA), the Andean Trade Promotion and Drug Eradication Act (ATPDEA), the

Caribbean Basin Economic Recovery Act (CBERA), and the Caribbean Basin Trade

Partnership Act (CBTPA); and programs affecting textile and apparel imports.

Import Relief Laws

Safeguard Actions

This section covers only safeguard actions under provisions administered by the U.S.

International Trade Commission (USITC or the Commission). Safeguard actions under

provisions administered by other agencies, such as the China safeguard actions by the

U.S. Department of Commerce are described elsewhere in this chapter.

No new U.S. safeguard measures were applied during 2004 under any of the

authorities administered by the Commission, and no U.S. safeguard measures under

those authorities were in effect during any part of the year.1 No safeguard petitions

were pending before the USITC, and no USITC safeguard recommendations were

pending before the President at the end of 2004.

1 However, an import licensing system provided for in the President’s March 2002

proclamation imposing global safeguard measures on certain steel products remained in effect

throughout the year. The President had earlier, in December 2003, terminated the tariff and

tariff rate quota measures that were part of the safeguard measure. See Proclamation 7529 of

Mar. 5, 2002, 67 FR 10553, Mar. 7, 2002; and Proclamation 7741 of Dec. 4, 2003, 68 FR

68483, Dec. 8, 2003. The licensing system, which was administered by the U.S. Department of

Commerce, terminated on March 21, 2005. It was replaced by a new program, also

administered by Commerce, under different authority.

2 U.S.C. 2451.

3 USITC, Uncovered Innerspring Units from China, investigation No. TA-421-5, USITC

publication No. 3676, Mar. 2004.
2-2

During 2004, the USITC conducted one safeguard investigation, under the China

safeguard provision in section 421 of the Trade Act of 1974,2 with respect to imports of

innerspring mattress units from China. The petition was filed with the USITC in January

2004, and the USITC made a negative market disruption determination in March

2004;3 as a result, no remedy measure was applied. In the one safeguard remedy

recommendation pending before the President at the beginning of 2004, and also

under the China safeguard provision involving imports of ductile iron waterworks

fittings from China,4 the President decided not to apply a safeguard measure.5

Adjustment Assistance

The Trade Adjustment Assistance (TAA) program, set forth in section 221 of the Trade

Act of 1974, authorizes the U.S. Secretary of Commerce and the U.S. Secretary of

Labor to provide trade adjustment assistance to firms and workers who are adversely

affected by increased imports.6 The TAA system of readjustment allowances to

individual workers is administered by the U.S. Department of Labor through its

Employment and Training Administration in the form of monetary benefits for direct

trade readjustment allowances and service benefits that include allocations for job

search, relocation, transportation subsidies, and training. The TAA for farmers,

administered by the U.S. Department of Agriculture, provides technical assistance and

cash benefits to eligible producers. Industry-wide technical consultation, provided

through programs sponsored by the U.S. Department of Commerce, is designed to

restore the economic viability of U.S. industries adversely affected by import

competition.7

Trade Adjustment Assistance to Workers

The U.S. Department of Labor instituted 2,984 investigations during FY 2004 (October

1, 2003 through September 30, 2004) on the basis of petitions filed for trade

adjustment assistance.8 Petitioners for TAA represented a broad spectrum of

manufacturing industries, including circuit boards, textiles, and paper. The FY 2004

figure represents a decrease from the 3,567 TAA petitions instituted in FY 2003. The

results of the TAA investigations completed in FY 2004, including those in progress

from the previous fiscal year, are shown in table 2-1.

4USITC, Certain Ductile IronWaterworks Fittings from China, investigation No. TA-421-4,

USITC publication No. 3657, Dec. 2003.

5 Sections 251-264 of the Trade Act of 1974.

6 President, “Memorandum for the United States Trade Representative,” Mar. 3, 2004,

found at http://www.whitehouse.gov/news/releases/2004/03/20040303-12. 7 The President signed the Trade Adjustment Assistance Reform Act of 2002 (TAA Reform

Act) into law on Aug. 6, 2002. The TAA Reform Act reauthorized the TAA program through

fiscal year 2007, as well as amended and added provisions to the TAA program.

8 Data supplied by U.S. Department of Labor, Employment and Training Administration,

Apr. 14, 2005.
2-3

Table 2-1

Results of petitions filed under the trade adjustment assistance program,

FY 2003 and FY 2004

Number of TAA cases Number of workers

Item FY 2003 FY 2004 FY 2003 FY 2004

Completed certifications . . . . . . . . . . . . 1,884 1,793 197,115 147,597

Partial certifications . . . . . . . . . . . . . . . . 4 1 241 414

Total (completed and partial

certifications) . . . . . . . . . . . . . . . . . 1,888 1,794 197,356 148,011

Petitions denied . . . . . . . . . . . . . . . . . . . 1,207 948 82,573 57,469

Petitions terminated or withdrawn . . . . . 494 467 24,438 4,418

Total . . . . . . . . . . . . . . . . . . . . . . . . . 3,589 3,214 304,367 209,898

Note.—The estimated number of workers covered by a certification is not an exact figure. It is an estimate

developed at the time the certification is issued. A certification covers all members of the affected worker

group laid off during the approximately 3-year period covered by the certification. Over the course of

time, additional workers may be laid off, workers who were laid off may be recalled, or planned layoffs

may not occur.

Source: U.S. Department of Labor, Employment and Training Administration, Division of Trade Adjustment

Assistance.

There were a total of 3,209 completed TAA cases in FY 2004 (including partial

certifications and denied, terminated, or withdrawn petitions), a decrease from 3,589

cases in FY 2003. As shown in table 2-1, there were 147,597 workers certified for TAA

based on completed certifications in FY 2004, and an additional 414 workers certified

for TAA based on partial certifications, or a total of 148,011 workers certified in FY

2004.9 This was a decline from 197,356 workers certified (completed and partial

certifications) in FY 2003.

Table 2-2 presents data on benefits and services provided under the TAA program.

There were 75,726 new TAA recipients in FY 2004, compared to 44,135 new

recipients in FY 2003. The Department of Labor awarded $259 million in TAA funding

to assist workers certified as eligible to receive benefits and services under the TAA

program in FY 2004, a decrease from $347 million in FY 2003. State allocations

increased to $562.0 million in FY 2004 from $398.2 million in FY 2003.10

9 For workers to be certified as eligible to apply for TAA, the Secretary of Labor must

determine that workers in a firm have become, or are threatened to become, totally or partially

separated; that the firm’s sales or production has decreased absolutely; and that increases in

like or directly competitive imported products contributed importantly to the total or partial

separation and to the decline in the firm’s sales or production. Workers certified for TAA are

provided with a certification of eligibility and may apply for TAA benefits at the nearest office of

the State Employment Security Agency. For further information, see U.S. Department of Labor,

Employment and Training Administration, “Trade Adjustment Assistance (TAA) and Alternative

Adjustment Assistance (ATAA) Application Process,” found at

http://www.doleta.gov/tradeact/petitions.cfm#2. 10 Data supplied by U.S. Department of Labor, Employment and Training Administration,

Apr. 14, 2005.
2-4

Table 2-2

Benefits and services provided under the trade adjustment assistance

program, FY 2003 and FY 2004

Estimated number of participants

Item FY 2003 FY 2004

Trade readjustment

allowance benefits

Number of new recipients . . . . . . . . . . . . . . . . . . . . . . . . . 44,135 75,726

Total Federal allocations (million dollars) .......... 347 259

Total State allocations (million dollars) ............. 398 562

Training, job search, and

relocation services

Number entering training . . . . . . . . . . . . . . . . . . . . . . . . . 43,444 46,938

Number receiving a job search allowance . . . . . . . . . . . . 423 433

Number receiving a relocation allowance . . . . . . . . . . . . 730 787

Source: U.S. Department of Labor, Employment and Training Administration, Division of Trade Adjustment

Assistance.

Trade Adjustment Assistance to Farmers

The Trade Act of 2002 established the Trade Adjustment Assistance for Farmers

program. Under this program, which was first implemented in 2004, the U.S.

Department of Agriculture (USDA) provides technical assistance and cash benefits to

eligible producers of raw agricultural commodities when the Administrator of the

Foreign Agricultural Service (FAS) determines that increased imports have contributed

importantly to a specific price decline over five preceding marketing years.11 The TAA

Reform Act authorizes an appropriation of not more than $90 million for each fiscal

year, 2004 through 2007, to carry out the program. TAA for farmers covers farmers,

ranchers, fish farmers, and fishermen;12 it does not cover the forest products

industry.13

11Information obtained from the TAA Coordinator, TAA for Farmers, FAS, USDA, June 21,

2005. For a more detailed description of this program, see USDA, “Trade Adjustment

Assistance for Farmers,” found at http://www.fas.usda.gov/itp/taa/taaindex.htm, retrieved

Jan. 20, 2004; and USDA, “Trade Adjustment Assistance for Farmers: Trade Act of 2002:

FAQ’s,” found at http://www.fas.usda.gov/itp/taa/taafaq.htm. 12 A qualified fisherman means a person whose catch competes in the marketplace with

like or directly competitive aquaculture products.

13Criteria to participate in the program include the following: “Producer prices during the

most recent marketing year must be less than or equal to 80 percent of the national average

price during the previous 5 marketing years. In addition, FAS must make a determination that

increases in imports of like or competitive products ‘contributed importantly’ to the decline in

prices.” USDA, “Trade Adjustment Assistance for Farmers: Trade Act of 2002: FAQ’s.”
2-5

For producers that satisfy certain criteria, the program provides payments and

technical assistance which may include technical publications, group seminars and

presentations, and one-on-one meetings.14 Table 2-3 shows that of the 47 petitions

filed for TAA in FY 2004, 12 petitions were certified covering 4,512 farmers, ranchers,

fish farmers, and fishermen. According to USDA, benefits totaling an estimated value

of $15.1 million (cash and technical assistance) were provided to 4,502 recipients

under the TAA to farmers program in FY 2004; estimated cash benefits paid in

FY 2004 were $11.8 million.15

Table 2-3

Results of petitions filed under the trade adjustment assistance program

for farmers, FY 2004

Number of

petitions

Number of farmers,

ranchers, fish farmers,

and fishermen

Petitions certified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4,512

Petitions denied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 2,106

Total petitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 6,618

Source: U.S. Department of Agriculture.

Trade Adjustment Assistance to Firms and Industries

The Economic Development Administration (EDA) of the U.S. Department of

Commerce certified 162 firms as eligible to apply for trade adjustment assistance

during FY 2004, a decrease from the 207 firms certified in FY 2003. To be certified as

eligible for TAA under this program, a firm must show that increased imports of articles

like, or directly competitive with, those produced by the firm contributed significantly to

declines in its sales, production, or both, and to the separation, or threat of separation,

of a significant portion of the firm’s workers. Following certification, a firm must

prepare an adjustment proposal before it may receive technical assistance to

implement its economic recovery strategy. In FY 2004, EDA approved adjustment

strategies for 165 firms, an increase from 162 in FY 2003.16

14Cash benefits per unit of production are one-half the difference between the most recent

marketing year’s price and 80-percent of the previous five-year average price. To be eligible

for benefits, producers must provide production evidence; certify that they have met with the

Extension Service; have not received cash benefits under any other provisions of the Trade Act

of 1974; have experienced a decline in net farm income for the most recent tax year; and, have

not had an average Adjusted Gross Income for the 3 preceding years that exceeded $2.5

million. Cash payments are limited to a maximum of $10,000 in a fiscal year. FY 2004 was the

first year of the program’s implementation. For more detailed information, see USDA, “Trade

Adjustment Assistance for Farmers,” and USDA, “Trade Adjustment Assistance for Farmers:

Trade Act of 2002: FAQ’s.”

15 Cash benefits are paid only to producers who certify that, among other things, their net

income from farming, aquaculture or fishing has declined. Technical assistance is available to

all producers. USDA, “Trade Adjustment Assistance for Farmers: Trade Act of 2002: FAQ’s.”

Statistics supplied by USDA, June 21, 2005.

16 For a more detailed description of eligibility requirements, see U.S. Department of

Commerce, “Trade Adjustment Assistance for Firms: FAQs,” found at

http://www.taacenters.org/faqs.html.
2-6

The EDA administers its technical assistance programs through a nationwide network

of 11 Trade Adjustment Assistance Centers (TAACs).17 The funding for the TAACs from

the TAA appropriation totaled approximately $11.9 million in FY 2004, compared to

$10.4 million in FY 2003.

Laws Against Unfair Trade Practices

Section 301 Investigations

Section 301 of the Trade Act of 1974 (the Trade Act) is the principal U.S. statute for

addressing foreign unfair practices affecting U.S. exports of goods or services.18

Section 301 may be used to enforce U.S. rights under bilateral and multilateral trade

agreements and also may be used to respond to unreasonable, unjustifiable, or

discriminatory foreign government practices that burden or restrict U.S. commerce.

Interested persons may petition the Office of the United States Trade Representative

(USTR) to investigate foreign government policies or practices, or USTR may initiate an

investigation.

If the investigation involves a trade agreement and consultations do not result in a

settlement, section 303 of the Trade Act requires USTR to use the dispute settlement

procedures that are available under the subject agreement. If the matter is not resolved

by the conclusion of the investigation, section 304 of the Trade Act requires USTR to

determine whether the practices in question deny U.S. rights under a trade agreement;

whether they are unjustifiable, unreasonable, or discriminatory; and whether they

burden or restrict U.S. commerce. If the practices are determined to violate a trade

agreement or to be unjustifiable, USTR must take action. If the practices are determined

to be unreasonable or discriminatory, and to burden or restrict U.S. commerce, USTR

must determine whether action is appropriate and, if so, what action to take. The time

period for making these determinations varies according to the type of practices

alleged.

17 The TAACs are nonprofit, nongovernmental organizations established to help firms

qualify for and receive assistance in adjusting to import competition. Technical services are

provided to certified firms through TAAC staff and independent consultants under contract with

TAACs. Typical technical services include assistance in marketing (e.g., the design of new

brochures and websites), identifying appropriate management information system hardware

and software, and developing and completing quality assurance programs. For a more

detailed description, see the U.S. Department of Commerce TAAC website, found at

http://www.taacenters.org/. 18 Sections 301–309 of the Trade Act of 1974, as amended (19 U.S.C. 2411–2419).
2-7

Active Cases in 2004

In 2004, the active cases under section 301 concerned the European Union’s (EU) meat

hormone directive and intellectual property rights protection in Ukraine. With regard

to the EU meat hormone directive, duties imposed in 1999 remained in effect in 2004.

Bilateral talks were held during 2004; by yearend the bilateral trade dispute remained

unresolved.

In May 2004, USTR designated Ukraine a priority foreign country and noted

disappointment with the country’s persistent failure to take effective action against

significant levels of optical media (such as CDs, DVDs, and CD-ROMs) piracy and to

implement intellectual property rights (IPR) laws that provide adequate and effective

protection. USTR indicated that the $75 million in sanctions imposed on Ukranian

products on January 23, 2002, would remain in place.

Table 2-4 contains a listing of the two active 301 cases: (1) the European Union and

Meat Hormone Directive, and (2) Ukraine and the Protection of Intellectual Property

Rights.

Table 2-4

Active 301 cases in 2004

Docket No. Summary and actions occurring during course of investigation

Docket No. 301-62a European Union and the Meat Hormone Directive

In 1997, the WTO found that the EU’s ban on meat produced from

animals treated with growth hormones was inconsistent with its WTO

obligations. In 1999, when the EU had not implemented the WTO

recommendations, the United States requested and received authorization

from the WTO to retaliate against imports from the EU. The increased

duties remained in effect during 2004. Bilateral consultations were held

during 2004; however, the issue remained unresolved at yearend.1

Docket No. 301-121 Ukraine and the Protection of Intellectual Property Rights

In 2001, the USTR identified Ukraine as a priority foreign country under

the “special 301” provisions of the section 301 law due to its denial of

adequate and effective protection of intellectual property rights (IPR). In a

parallel proceeding, USTR suspended Ukraine’s eligibility for the

Generalized System of Preferences (GSP) because of inadequate and

ineffective IPR protection. When ongoing bilateral consultations did not

result in an agreement that satisfactorily addressed the optical media

piracy situation in Ukraine, USTR issued a preliminary retaliation list under

section 301. In December 2001, USTR announced that the United States

would impose prohibitive duties on certain imports from Ukraine.2 The

suspension of GSP benefits and the additional duties remained in effect

during 2004.3

1 See USTR, Trade Policy Agenda and 2004 Annual Report, March 2004, p. 256; USTR, press release

99-44, May 14, 1999; and 64 Federal Register 28860, May 27, 1999.

2 See USTR, press release 00-05, Jan. 27, 2000, and USTR, press release 00-14, Feb. 28, 2000. The full

text of the report of the WTO dispute settlement panel is available on the WTO’s website at www.wto.org. 3 See USTR, Special 301 Report, May 2004.

Source: Compiled by the Commission.
2-8

Special 301

The special 301 law requires that the USTR each year identify countries that deny

adequate and effective protection of IPR or that deny fair and equitable market access

for U.S. persons who rely on IPR protection.19 The USTR is to identify only those foreign

countries (1) that have the most egregious acts, policies, or practices; (2) whose acts,

policies, or practices have the greatest adverse impact on the relevant U.S. products;

and (3) that are not entering into good faith negotiations or making significant

progress in bilateral or multilateral negotiations to provide adequate and effective

protection of IPR (the watch list, described below).20 A country may be found to be

denying adequate and effective IPR protection even if it is in full compliance with its

obligations under the WTO Agreement on Trade-related Aspects of Intellectual

Property Rights (TRIPs Agreement).21 In addition, the special 301 law directs USTR to

identify so-called priority foreign countries.

In the annual special 301 review process, USTR has adopted a policy of naming

countries to the so-called watch list or the priority watch list22 if the countries’ IPR laws

and practices do not provide adequate and effective IPR protection, but the

deficiencies do not warrant identification of the countries as priority foreign

countries.23 The priority watch list is reserved for countries with significant IPR

problems that warrant close monitoring and bilateral consultation. A country that is

identified on the priority watch list may make progress and be downgraded to the

watch list or removed from any listing; alternatively, a country that fails to make

progress may be elevated from the watch list to the priority watch list or from the

priority watch list to the list of priority foreign countries.

In its report on the results of the 2004 special 301 review, USTR noted the continued

global threats posed by ineffective IPR enforcement and commercial piracy, with

particular emphasis on the unauthorized production of optical media products and

counterfeiting of consumer products. USTR estimated losses to U.S. industries caused

by counterfeiting of approximately $200–$250 billion annually.24 In addition, the

USTR report focused on Internet piracy, implementation of the TRIPs Agreement by

developing-country WTO Members, full implementation of TRIPs by new WTO

Members at the time of their accession, and ensuring that ministries of foreign

governments use only authorized software.25

19 Section 182 of the Trade Act of 1974 (19 U.S.C. 2242).

20 Section 182(b)(1) of the Trade Act of 1974 (19 U.S.C. 2242 (b)(1)).

21 Section 182(d)(4) of the Trade Act of 1974 (19 U.S.C. 2242(d)(4)).

22 “USTR has created a “Priority Watch List” and “Watch List” under Special 301

provisions. Placement of a trading partner on the Priority Watch List or Watch List indicates that

particular problems exist in that country with respect to IPR protection, enforcement, or market

access for persons relying on intellectual property. Countries placed on the Priority Watch List

are the focus of increased bilateral attention concerning the problem areas.” USTR, 2005

Trade Policy Agenda and 2004 Annual Report, March 2005, p. 259.

23 USTR, 2003 Annual Report, March 2004, p. 215.

24 USTR, 2004 Special 301 Report, April 2005, p. 3, found at http://www.ustr.gov/. 25 Ibid., p. 1.
2-9

Of the approximately 85 countries examined in detail during the 2004 annual review,

USTR’s 2004 report identified 52 countries that fail to provide adequate and effective

IPR protection. USTR noted “with disappointment Ukraine’s persistent failure to take

effective action against significant levels of optical media piracy and to implement

intellectual property laws that provide adequate and effective protection.”26 USTR

maintained Ukraine’s designation as a priority foreign country, and the $75 million in

sanctions imposed on January 23, 2002 remained in effect.27 Fifteen countries or

economies were placed on the priority watch list,28 and 34 countries were placed on

the watch list meriting bilateral attention to address underlying IPR problems.29 In

addition, USTR noted that China continues to be subject to ongoing monitoring to

ensure it complies with previous commitments made under a bilateral IPR

agreement.30 USTR also announced that out-of-cycle reviews would be conducted of

the IPR regimes in China, Israel, Malaysia, Poland, and Taiwan.31 With respect to

China, the out-of-cycle review is to assess whether specific commitments made by

China in April 2004 have been implemented.32 According to USTR, recently

negotiated U.S. free trade agreements (FTAs) with Australia, Central America and the

Dominican Republic, and Morocco “provide for higher levels of intellectual property

protection in a number of areas covered by the TRIPS Agreement,” and the United

States is seeking higher levels of IPR protection and enforcement in the FTAs currently

under negotiation.33

Antidumping Investigations

The U.S. antidumping law is contained in Title VII of the Tariff Act of 1930.34 The

antidumping law provides relief in the form of special additional duties that are

intended to offset margins of dumping. Antidumping duty orders are imposed when

26 Ibid.

27 Ibid.

28 Those countries are: Argentina, the Bahamas, Brazil, Egypt, the EU, India, Indonesia,

Korea, Kuwait, Lebanon, Pakistan, the Philippines, Russia, Taiwan, and Turkey. USTR, “Special

301 Report Finds Continued Progress but Significant Improvements Needed,” press release,

May 3, 2004, found at

http://www.ustr.gov/Document_Library/Press_Releases/2004/May/Special_301_Report_

Finds_Continued_Progress_But_Significant_Improvements_Needed.html.

29 Ibid. Those countries are: Azerbaijan, Belarus, Belize, Bolivia, Bulgaria, Canada, Chile,

Colombia, Costa Rica, Croatia, Dominican Republic, Ecuador, Guatemala, Hungary, Israel,

Italy, Jamaica, Kazakhstan, Latvia, Lithuania, Malaysia, Mexico, Peru, Poland, Romania,

Saudi Arabia, Slovak Republic, Tajikistan, Thailand, Turkmenistan, Uruguay, Uzbekistan,

Venezuela, and Vietnam.

30 Ibid.

31 Developments with respect to China and Taiwan are described in chapter 5 of this

report.

32 USTR, 2004 Special 301 Report, p. 1.

33 Ibid., p. 2. U.S. FTAs are described in chapter 4 of this report.

34 19 U.S.C. 1673 et seq.
2-10

(1) the U.S. Department of Commerce (the administering authority) has determined

that imports are being, or are likely to be, sold at less than fair value (LTFV) in the

United States, and (2) the Commission has determined that a U.S. industry is materially

injured or threatened with material injury or that the establishment of an industry in the

United States is materially retarded by reason of such imports. Most investigations are

conducted on the basis of a petition filed with Commerce and the Commission by or on

behalf of a U.S. industry.

In general, imports are considered to be sold at LTFV when the U.S. price (that is, the

purchase price or the exporter’s sales price, as adjusted) is less than the foreign market

value, which is usually the home-market price or, in certain cases, the price in a third

country, or a constructed value, calculated as set out by statute.35 The antidumping

duty is designed to equal the difference between the U.S. price and the foreign market

value. The duty specified in an antidumping order reflects the dumping margin found

by Commerce during its period of investigation. This rate of duty will be applied to

subsequent imports if Commerce does not receive a request for annual reviews. If a

request is received, Commerce will calculate the antidumping duties for that year for

each entry.

Commerce and the Commission each conduct preliminary and final phase

antidumping investigations in making their separate determinations.36 The

Commission instituted 22 new antidumping investigations during 2004 and completed

32 investigations.37 Antidumping duty orders were imposed in 2004 as a result of

affirmative determinations in 15 of those completed investigations, on products from

seven countries. The antidumping duty orders put into effect in 2004 are shown in table

2-5 (in alphabetical order by country).

35 19 U.S.C. 1677b; 19 CFR part 353, subpart D.

36 Upon the filing of a petition, the Commission has 45 days to make a determination of

whether there is a reasonable indication that an industry in the United States is materially

injured or threatened with material injury, or that the establishment of an industry in the United

States is materially retarded, by reason of imports of the merchandise subject to the

investigation. This is known as the preliminary phase of the investigation. If this determination is

affirmative, Commerce continues its investigation and makes preliminary and final

determinations concerning whether the imported merchandise is being, or is likely to be, sold at

LTFV. If Commerce reaches a final affirmative dumping determination, the Commission has 45

days to make itsfinal injury determination. If the Commission’s preliminary phase determination

is negative, both the Commission and Commerce terminate further investigation.

37 Data reported here and in the following two sections (“Countervailing Duty

Investigations and Reviews of Outstanding Antidumping and Countervailing Duty

Orders/Suspension Agreements”) reflect the total number of investigations. In other

Commission reports these data are grouped by product because the same investigative team

and all of the parties participate in a single grouped proceeding, and the Commission generally

produces one report and issues one opinion containing its separate determinations for each

investigation.
2-11

Table 2-5

Antidumping duty orders that became effective during 2004

Country Product Range of duty

Percent

Brazil ................. Prestressed concrete steel wire strand 118.75

China . . . . . . . . . . . . . . . . . Color television receivers 5.22–78.45

China . . . . . . . . . . . . . . . . . Tetrahydrofurfuryl alcohol 136.86

China . . . . . . . . . . . . . . . . . Ironing tables 9.47–157.68

China . . . . . . . . . . . . . . . . . Polyethylene retail carrier bags 19.79–77.57

China . . . . . . . . . . . . . . . . . Hand trucks 26.49–383.60

China . . . . . . . . . . . . . . . . . Carbazole violet pigment 23 5.51–217.94

China . . . . . . . . . . . . . . . . . Wooden bedroom furniture 2.22–198.08

India . . . . . . . . . . . . . . . . . . Prestressed concrete steel wire strand 83.65–102.07

India . . . . . . . . . . . . . . . . . . Carbazole violet pigment 23 27.23–66.59

Korea . . . . . . . . . . . . . . . . . Prestressed concrete steel wire strand 35.64–54.19

Malaysia . . . . . . . . . . . . . . . Polyethylene retail carrier bags 84.94–101.74

Mexico . . . . . . . . . . . . . . . . Prestressed concrete steel wire strand 62.78–77.20

Thailand . . . . . . . . . . . . . . . Prestressed concrete steel wire strand 12.91

Thailand . . . . . . . . . . . . . . . Polyethylene retail carrier bags 2.26–122.88

Source: Compiled by the Commission from Federal Register notices.

Details on all antidumping investigations active at the Commission during 2004 are

presented in appendix table A-1. A list of all antidumping duty orders, including

suspension agreements,38 in effect as of the end of 2004 is presented in appendix

table A-2.

Countervailing Duty Investigations

The U.S. countervailing duty law is also set forth in Title VII of the Tariff Act of 1930. It

provides for the levying of special additional duties to offset foreign subsidies on

products imported into the United States.39 In general, procedures for such

investigations are similar to those under the antidumping law. Petitions are filed with

Commerce (the administering authority) and with the Commission. Before a

countervailing duty order can be issued, Commerce must find a countervailable

subsidy and the Commission must make an affirmative determination of material

injury, threat of material injury, or material retardation by reason of the subsidized

imports.

38 An antidumping investigation may be suspended if exporters accounting for

substantially all of the imports of the merchandise under investigation agree either to eliminate

the dumping or to cease exports of the merchandise to the United States within six months. In

extraordinary circumstances, an investigation may be suspended if exporters agree to revise

prices to eliminate completely the injurious effect of exports of the subject merchandise to the

United States. A suspended investigation is reinstituted should LTFV sales recur. See 19 U.S.C.

1673(c).

39A subsidy is defined as a bounty or grant bestowed directly or indirectly by any country,

dependency, colony, province, or other political subdivision on the manufacture, production,

or export of products. See 19 U.S.C. 1677(5) and 1677-1(a).
2-12

The Commission instituted four new countervailing duty investigations during 2004

and completed three investigations. Countervailing duties were imposed as a result of

affirmative determinations in two investigations on products from one country. The

countervailing duty orders issued in 2004 are shown in table 2-6. Details on all

countervailing duty investigations active at the Commission during 2004 are presented

in appendix table A-3, and a list of all countervailing duty orders, including suspension

agreements,40 in effect as of the end of the year is presented in appendix table A-4.

Table 2-6

Countervailing duty orders that became effective during 2004

Country Product Range of duty

Percent

India . . . . . . . . . . . . . . . Prestressed concrete steel wire strand 62.92

India . . . . . . . . . . . . . . . Carbazole violet pigment 23 17.33–33.61

Source: Compiled by the Commission from Federal Register notices.

Reviews of Outstanding Antidumping and Countervailing

Duty Orders/Suspension Agreements

Section 751 of the Tariff Act of 1930 requires Commerce, if requested, to conduct

annual reviews of outstanding antidumping and countervailing duty orders to

determine the amount of any net subsidy or dumping margin and to determine

compliance with suspension agreements. Section 751 also authorizes Commerce and

the Commission, as appropriate, to review certain outstanding determinations and

agreements after receiving information or a petition that shows changed

circumstances. In these circumstances, the party seeking revocation or modification of

an antidumping or countervailing duty order or suspension agreement has the burden

of persuading Commerce and the Commission that circumstances have changed

sufficiently to warrant review and revocation. Based on either of these reviews,

Commerce may revoke a countervailing duty or antidumping order in whole or in part

or terminate or resume a suspended investigation. No changed circumstances

investigations were active at the Commission during 2004.

40 A countervailing duty investigation may be suspended if the government of the

subsidizing country or exporters accounting for substantially all of the imports of the

merchandise under investigation agree to eliminate the subsidy, to completely offset the net

subsidy, or to cease exports of the merchandise to the United States within six months. In

extraordinary circumstances, an investigation may be suspended if the government of the

subsidizing country or exporters agree to eliminate completely the injurious effect of exports of

the subject merchandise to the United States. A suspended investigation is reinstituted if

subsidization recurs. See 19 U.S.C. 1671c.
2-13

The Uruguay Round Agreements Act (URAA) amended section 751 of the Tariff Act of

1930 to require both Commerce and the Commission to conduct sunset reviews of

outstanding orders and suspension agreements every five years measured from their

publication to determine whether revocation of an order or suspension agreement

would be likely to lead to continuation or recurrence of dumping or a countervailable

subsidy and material injury.41 During 2004, Commerce and the Commission instituted

65 sunset reviews of existing antidumping and countervailing duty orders.42 Twelve of

these reviews were subsequently terminated and the outstanding order/suspension

agreement revoked because domestic industry response was inadequate. The

Commission completed 17 reviews, resulting in 17 antidumping orders being continued

for five additional years. Appendix table A-5 shows completed reviews of

antidumping and countervailing duty orders in 2004.43

Section 337 Investigations

Section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), authorizes the

Commission, on the basis of a complaint or on its own initiative, to conduct

investigations with respect to certain practices in import trade. Section 337 declares

unlawful the importation into the United States, the sale for importation, or the sale

within the United States after importation of articles that infringe a valid and

enforceable U.S. patent, registered trademark, registered copyright, or registered

mask work (semiconductor circuit), for which a domestic industry exists or is in the

process of being established.44

41 19 U.S.C. 1675c.

42 The revoked antidumping orders were on extruded rubber thread from Indonesia;

aspirin from Turkey; melamine in crystal form from Japan; anhydrous sodium metasilicate from

France; solid urea from Belarus, Estonia, Lithuania, Romania, Tajikistan, Turkmenistan, and

Uzbekistan; and drafting machines from Japan.

43 For detailed information on reviews instituted, as well as Commission action in all

reviews, see the Commission’s website section titled “Five-year ‘Sunset’ Reviews” at

http://www.usitc.gov/webinv.htm. 44 Also unlawful under section 337 are other unfair methods of competition and unfair

acts in the importation of articles into the United States, or in the sale of imported articles, the

threat or effect of which is to destroy or substantially injure a domestic industry, to prevent the

establishment of an industry, or to restrain or monopolize trade and commerce in the United

States. Examples of these other unfair acts are misappropriation of trade secrets, common law

trademark infringement, trade dress infringement, false advertising, and false designation of

origin. Unfair practices that involve the importation of dumped or subsidized merchandise must

be pursued under antidumping or countervailing duty provisions, not under section 337.
2-14

If the Commission determines that a violation exists, it can issue an order excluding the

subject imports from entry into the United States, or order the violating parties to cease

and desist from engaging in the unlawful practices.45 The President may disapprove a

Commission order within 60 days of its issuance for “policy reasons.”

During calendar year 2004, there were 47 active section 337 investigations and

ancillary proceedings, 28 of which were instituted in 2004. Of these 28, there were 26

new section 337 investigations and two new ancillary proceedings. Further, with

respect to the 28 new cases in 2004, 26 involved allegations of only patent

infringement and two involved allegations of trademark and/or trade dress

infringement. Four investigations were terminated on the basis of settlement

agreements and two investigations were terminated based on consent orders. The

Commission completed a total of 21 investigations and ancillary proceedings under

section 337 in 2004, including one bond forfeiture proceeding and one advisory

opinion proceeding relating to a previously concluded investigation. Eight exclusion

orders and 12 cease-and-desist orders were issued during 2004. At the close of 2004,

there were 26 section 337 investigations and related proceedings pending at the

Commission. Commission activities involving section 337 actions in 2004 are

presented in appendix table A-6.

As in recent years, the section 337 caseload was highlighted by investigations

involving complex technologies, particularly in the computer and telecommunications

fields. Significant among these were investigations involving controllers used to display

images on LCD monitors, recordable and rewritable compact discs, power adapters

and converters for mobile electronic products, disk drives, digital image storage and

retrieval devices for digital cameras and cellular phones, systems for detecting and

removing viruses or worms, and various other memory chips and related integrated

circuit devices, as well as processes for semiconductor fabrication. Several other

investigations involved sophisticated technologies relating to items such as

pharmaceuticals, medical devices used for spinal surgery, point-of-sale terminals,

transmitters for garage door openers, light-emitting diodes, injectable implant

compositions, and voltage regulator circuits. Other section 337 investigations active

during the year concerned bearings used in industrial applications, ear protection

devices, alkaline batteries, automotive transmission systems, automotive measuring

devices, shirts with pucker-free seams, and ink markers.

As of December 31, 2004, exclusion orders based on violations of section 337 were in

effect in 54 investigations, of which 27 involve unexpired patents. Appendix table A-7

lists the investigations in which these exclusion orders were issued.

45 Section 337 proceedings at the Commission are conducted before an administrative

law judge in accordance with the Administrative Procedure Act, 5 U.S.C. 551 et seq. The

administrative law judge conducts an evidentiary hearing and makes an initial determination,

which is transmitted to the Commission. The Commission may adopt the determination by

deciding not to review it, or it may choose to review it. If the Commission finds a violation, it must

determine the appropriate remedy, the amount of any bond to be collected while its

determination is under review by the President, and whether public interest considerations

preclude the issuance of a remedy.
2-15

Other Import Administration Laws and Programs

Tariff Preference Programs

Generalized System of Preferences

The U.S. Generalized System of Preferences (GSP) program authorizes the President

to grant duty-free access to the U.S. market for certain products that are imported from

designated developing countries and territories. The program is authorized by Title V

of the Trade Act of 1974, as amended (19 U.S.C. 2461 et seq.). It has been enhanced to

allow duty-free treatment for certain products when imported only from countries

designated as least-developed beneficiary developing countries (LDBDC). Further,

Public Law 106-200, enacted May 18, 2000, in Title I (African Growth and

Opportunity Act) (AGOA) amended Title V to authorize the President to provide

duty-free treatment for certain articles when imported from countries designated as

beneficiary sub-Saharan African countries through September 30, 2008. By offering

unilateral tariff preferences, the GSP program reflects the U.S. commitment to three

broad goals: (1) to promote economic development in developing and transitioning

economies through increased trade, rather than foreign aid; (2) to reinforce U.S. trade

policy objectives by encouraging beneficiaries to open their markets, to comply more

fully with international trading rules, and to assume greater responsibility for the

international trading system; and (3) to help maintain U.S. international

competitiveness by lowering costs of imports for U.S. business and lowering prices for

American consumers.

Countries are designated as “beneficiary developing countries” under the program by

the President. The President cannot designate certain developed countries named in

the statute and also may not designate countries that, inter alia, afford preferential

treatment to the products of a developed country, other than the United States, that

has, or is likely to have, a significant adverse effect on U. S. commerce. The President

cannot designate countries that do not afford adequate protection to intellectual

property rights or afford internationally recognized worker rights to their workers.46

The President also designates the articles that are eligible for duty-free treatment, but

may not designate articles that he determines to be “import-sensitive” in the context of

GSP. Certain articles (for example, footwear, textiles, and apparel) are designated by

statute as “import-sensitive” and thus not eligible for duty-free treatment under the GSP

program. The statute also provides for graduation of countries from the program

when they become “high-income” countries and for removal of eligibility of articles, or

articles from certain countries, under certain conditions.

46 19 U.S.C. 2462(b).
2-16

Each year (unless otherwise specified in a Federal Register notice), USTR conducts a

review process in which products can be added to, or removed from, the GSP program

or in which a beneficiary’s compliance with the eligibility requirements can be

reviewed. Key developments during the 2004 GSP review process were:

S On February 24, 2004, USTR announced the product and country practice

petitions that were accepted for the 2004 GSP Annual Review.47

S On March 1, 2004, the President proclaimed certain modifications of the

duty-free treatment under GSP with respect to country designations as GSP

beneficiaries.48

S On May 18, 2004, USTR announced May 1, 2004 as the date of the

termination of GSP eligibility for the Czech Republic, Estonia, Hungary,

Latvia, Lithuania, Poland, and Slovakia as a result of their accessions to the

European Union on May 1, 2004.49

S On June 30, 2004, the President proclaimed certain modifications to the GSP

implementing decisions made in regard to the 2003 Annual GSP Review.50

S On September 7, 2004, the President proclaimed certain modifications to the

GSP with respect to imports from Iraq and Russia.51

47 69 FR 8514.

48 The modifications provided for the following: (1) the designation of Algeria as a GSP

beneficiary country; (2) the termination of the designation as a GSP beneficiary country for the

Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia effective on the day

on which each country became a EU member state, with such date to be announced in the

Federal Register by USTR; and (3) the graduation from GSP eligibility of Antigua and Barbuda,

Bahrain, and Barbados because of their designation as “high income” countries effective Jan. 1,

2006. President, Proclamation, “To Modify Duty-Free Treatment Under the Generalized

System of Preferences,” Proclamation No. 7758, Mar. 1, 2004 (69 FR 10131).

49 69 FR 28185.

50 69 FR 40299. The modifications provided for the following: (1) the granting of de

minimis waivers for 66 articles and restoration to preferential treatment of 5 eligible articles

from certain beneficiary countries; (2) the exclusion of 11 articles from certain beneficiary

countries from eligibility for preferential treatment under GSP where shipments exceeded the

competitive need limits for calendar year 2003; (3) the subdivision of certain Harmonized Tariff

Schedule of the United States (HTS) subheadings 3901.10.00 and 3901.20.00 to provide for the

removal of certain polyethylene polymer articles from eligibility under GSP; and (4) the

granting of a waiver to Indonesia of the competitive need limits for HTS subheading

8525.40.80.

5169 FR 54739. The modifications provided for the following: (1) the designation of Iraq as

a GSP beneficiary country; (2) the removal of GSP eligibility for Russia for HTS 8108.90.60

(certain titanium); and (3) the revocation of a waiver for Russia of the competitive need limits in

section 503 (c)(2)(A) of the Trade Act of 1974 for HTS 8108.90.60.
2-17

Other actions taken by USTR with respect to GSP in 2004 were:

S On April 12, 2004, USTR requested public comment on the possible

withdrawal, suspension, or limitation of GSP benefits with respect to

Bangladesh.52

S On July 6, 2004, USTR announced the initiation of a review to consider the

designation of Iraq as a GSP beneficiary developing country and the

solicitation of public comments.53

S On July 6, 2004, USTR announced the results of the 2003 Annual Products

Review, the 2002 Annual Country Practices Review, and certain previously

deferred product and country practices decisions which were implemented in

Proclamation 7808.54

S On September 10, 2004, USTR initiated a review to consider the designation

of Azerbaijan as a GSP beneficiary developing country.55

S On November 15, 2004 USTR extended the deadline for the submission of

petitions for the 2004 Annual GSP Product and Country Eligibility Practices

Review to December 13, 2004.56

Duty-free imports entered under the GSP program totaled approximately $22.7

billion in 2004, accounting for more than 10.2 percent of total U.S. imports from GSP

beneficiary countries and about 1 percent of total U.S. imports (table 2-7). India was

the leading GSP beneficiary in 2004, followed by Brazil, Thailand, Angola, and

Indonesia. Appendix table A-8 shows the top 20 GSP products or product categories

in 2004, and appendix table A-9 shows the overall sectoral distribution of GSP

benefits.

African Growth and Opportunity Act (AGOA)

The Trade and Development Act of 2000 provides expanded trade benefits for 48

potentially eligible sub-Saharan African (SSA) countries under Title I, which is the

AGOA.57 AGOA amends the GSP program, described above, and authorizes the

President to provide duty-free and quota-free treatment for certain products imported

from SSA countries, if it is determined that these products are not import-sensitive in the

context of imports from these countries. Whereas GSP covers approximately 4,600

items, AGOA expands coverage by more than 1,800 additional tariff lines. AGOA

also exempts beneficiaries from GSP competitive-need limits. Signed by the President

52 69 FR 19258.

53 69 FR 40704.

54 69 FR 40704.

55 69 FR 54825.

56 69 FR 65674.

57 Trade and Development Act of 2000, Public Law 106-200, Title I, May 18, 2000, 114

Stat. 252.
2-18

Table 2-7

U.S. imports for consumption from GSP beneficiaries and the world, 2004

(Million dollars)

Item

All GSP

beneficiaries World

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220,839 1,453,345

Total GSP-eligible products . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,810 634,000

Total GSP (non-LDBDC) eligible . . . . . . . . . . . . . . . . . . . . . . . . . 27,676 302,453

GSP-LDBDC eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,134 331,547

Total of Duty Free . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,697 22,697

Duty-free under non-LDBDC GSP . . . . . . . . . . . . . . . . . . . . . . . 18,462 18,462

Duty-free under GSP-LDBDC . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,236 4,236

Total of GSP eligible products not benefitting from GSP

duty-free treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,112 611,302

GSP Program exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,280 4,280

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,833 607,022

Noneligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187,029 819,346

Note.—Customs-value basis; excludes imports U.S. Virgin Islands.

Includes imports from all beneficiary countries for the articles that are designated as eligible articles under

GSP. Non-LDBDC eligible products are those for which a rate of duty of ”Free” appears in the Special

rate column of the Harmonized Tariff Schedule of the United States (HTS) followed by the symbols ”A” or

”A*” in parenthesis (the symbol ”A” indicates that all beneficiary countries are eligible for duty-free treatment with respect to all articles provided for in the designated provisions, and the symbol ”A*” indicates

that the certain beneficiary countries, specified in general note 4(d) of the HTS, are not eligible for dutyfree treatment with respect to any article provided for in the designated provision). LDBDC eligible products

are those for which a rate of duty ”Free” appears in the Special rate column of the HTS followed by the

symbol ”A+” in parenthesis [the symbol ”A+” indicates that all least-developed beneficiary developing

countries (LDBDC) (and only LDBDC’s) are eligible for duty-free treatment with respect to all articles provided for in the designated provisions]. For a variety of reasons, all imports from beneficiary countries

under HTS provisions that appear to be eligible for GSP treatment do not always and necessarily receive

duty-free entry under the GSP. Such eligible imports may not receive duty-free treatment under GSP for a

number of reasons: the imports fail to claim GSP benefits affirmatively; the goods are from a GSP beneficiary that lost GSP benefits on that product for exceeding the so-called competitive need limits; the GSP

beneficiary country may claim duty-free treatment under some other program or provision of the HTS; and

the good fails to meet the rule of origin or direct shipment requirement of the GSP statute.

Source: Compiled from official statistics of the U.S. Department of Commerce.

on August 2, 2002, section 3108 of the Trade Act of 2002 (AGOA II) enhanced the

original 2000 AGOA provisions and expanded preferential access for apparel

imports from SSA beneficiaries.58 (See Trade Preference Programs below for

additional information regarding preferential access for apparel imports from SSA

countries.)

AGOA requires the President to take into account specific criteria before an SSA

country may be designated for AGOA benefits. Those criteria include an annual

review to determine whether the country is making continued progress toward

establishing a market-based economy, enforcing the rule of law and political

pluralism, and promoting free trade and economic policies that will reduce poverty

58 These modifications collectively are referred to as AGOA II. In this report, the term

AGOA refers to AGOA, AGOA II, and AGOA III, as a group.
2-19

and protect workers’ rights.59Additionally, a country must not “engage in: i) violations

of internationally recognized human rights, ii) support for acts of international

terrorism, or iii) activities that undermine U.S. national security or foreign policy

interests.”60

Each year, the President must consider whether designated beneficiary countries

continue to meet the statutory eligibility requirements. On December 10, 2004, the

President designated Burkina Faso as AGOA-eligible, effective immediately, and on

December 21, 2004, the President removed Côte d’Ivoire from the list of eligible

countries, effective January, 1, 2005.61 As of January 1, 2005, 37 SSA countries met

AGOA’s eligibility requirements,62 and 24 SSA countries were eligible for apparel

benefits.63

On July 13, 2004, the President signed into law the AGOA Acceleration Act of 2004

(also known as AGOA III).64 AGOA III extended preferential access for imports from

eligible SSA countries until September 30, 2015; extended third-country fabric

provision for three years, from September 2004 until September 2007; and provided

additional Congressional guidance to the Administration on how to administer the

textile provisions of the bill.65 AGOA III also expressed the sense of Congress that the

Executive Branch, including the Bureau of Customs and Border Protection, the

Committee for the Implementation of Textile Agreements, and the U.S. Department of

59 USTR, 2005 Comprehensive Report on U.S. Trade and Investment Policy Toward

Sub-Saharan Africa and Implementation of the African Growth and Opportunity Act, May

2005, found at http://www.agoa.gov/resources/resources.html#agoareports, retrieved

June 17, 2005, p. 13.

60 USTR, 2005 Comprehensive Report on U.S. Trade and Investment Policy Toward

Sub-Saharan Africa and Implementation of the African Growth and Opportunity Act, May

2005, found at http://www.agoa.gov/resources/resources.html#agoareports, retrieved

June 17, 2005, p. 13.

61 The White House, “AGOA Act with Respect to Burkina Faso Proclamation,” Dec. 10,

2005, found at http://www.whitehouse.gov/news/releases/2004/12/20041210-15.html,

retrieved June 17, 2005; and The White House, “To Take Certain Actions Under the African

Growth and Opportunity Act,” Dec. 21, 2005, found at

http://www.whitehouse.gov/news/releases/2004/12/20041221-9.html, retrieved June 17,

2005.

62 The 37 AGOA beneficiary countries are: Angola, Benin, Botswana, Burkina Faso,

Cameroon, Cape Verde, Chad, Democratic Republic of the Congo, Djibouti, Ethiopia, Gabon,

The Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Madagascar, Malawi, Mali,

Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Republic of the Congo,

Rwanda, São Tomé and Principe, Senegal, Seychelles, Sierra Leone, South Africa, Swaziland,

Tanzania, Uganda, and Zambia.

63 The 24 countries eligible to receive AGOA apparel benefits are: Benin, Botswana,

Cameroon, Cape Verde, Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Malawi, Mali,

Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, South

Africa, Swaziland, Tanzania, Uganda, and Zambia.

64 Public Law 108-274.
2-20

Commerce, should implement and enforce the textile and apparel provisions of

AGOA “broadly to expand trade by maximizing opportunities for imports of such

articles” from eligible SSA countries.66

In addition to the textile- and apparel-related provisions, AGOA III mandates a

number of additional, trade-facilitating provisions.67 For example, the legislation

encourages SSA countries to support international trade liberalization efforts,

particularly WTO negotiations, and encourages the United States and the SSA

countries to pursue U.S.-SSA bilateral investment agreements. AGOA III also

addresses the need for increased trade capacity-building by encouraging the

development of infrastructure projects that support the ecotourism industry. Further,

the legislation mandates the promotion of infrastructure investment to improve and

expand roads, railways, and ports. The legislation also identifies the expansion of

information and communications technology infrastructure in SSA as an important

objective. To encourage the expansion of the agricultural sector in SSA countries, the

legislation requires the U.S. government to assign personnel to SSA to assist in

increasing agricultural exports to the United States and to advise countries on meeting

sanitary and phytosanitary standards. To further SSA countries’ access to the U.S.

market, AGOA III mandates increased coordination between U.S. and SSA customs

services in order to reduce transit time and to increase efficiency and safety

procedures.

On December 3, 2004, the President signed into law the Miscellaneous Trade and

Technical Corrections Act of 2004, which amended AGOA III to grant LDBC status to

Mauritius allowing producers there to use third-country fabric in qualifying apparel.

The amendment limits Mauritius to a cap of 5 percent of the “Special Rule” cap.68

Total trade between the United States and SSA increased 58.3 percent, from $27.8

billion in 2000 to $44.0 billion in 2004. This increase reflects a 61.3-percent increase

in U.S. imports from SSA, from $22.2 billion in 2000 to $35.8 billion in 2004, and a

46.4-percent increase in U.S. exports to SSA, from $5.6 billion in 2000 to $8.2 billion

in 2004.69

Imports under AGOA have more than doubled in recent years, growing from $8.4

billion in 2002 to nearly $22.0 billion in 2004. Imports under AGOA increased from

$13.2 billion in 2003 to $22.0 billion in 2004, or 66.7 percent (appendix table A-10).

The five leading suppliers were Nigeria (70.1 percent of total imports under AGOA),

Gabon (8.7 percent), Angola (5.7 percent), South Africa (3.8 percent), and Lesotho

(2.0 percent). These countries accounted for more than 90 percent of total imports

65 AGOA textile and apparel benefits are described in more detail in the section “U.S.

Textile and Apparel Trade Program,” below.

66 Ibid.

67 “Text of AGOA Acceleration Act of 2004—AGOA III,”found at http://www.agoa.gov,

retrieved June 17, 2005.

68 “Summary of AGOA Acceleration Act of 2004—AGOA III,” found at

http://www.agoa.gov, retrieved June 17, 2005.
2-21

under AGOA. Of the 25 leading imports under AGOA by 8-digit HTS,

petroleum-related products accounted for $19.6 billion, or more than 89.3 percent, of

total AGOA imports in 2004 (appendix table A-11). Apparel products accounted for

$1.4 billion, or 6.5 percent, of total imports under AGOA in 2004. The largest

2003-04 percent increases were petroleum (513.7-percent increase, HTS

2709.00.10), industrial fatty alcohols (297.8-percent increase, HTS 3823.70.60),

and manganese (263.5-percent increase, HTS 7202.11.50).

Andean Trade Preference Act

In 2004, articles from Bolivia, Colombia, Ecuador, and Peru entering the United States

free of duty under the Andean Trade Preference Act (ATPA) were valued at $8.4

billion (table 2-8). ATPA was enacted in 1991 to promote broad-based economic

development and viable economic alternatives to coca cultivation and cocaine

production by offering Andean products broader access to the U.S. market.70 ATPA

expired on December 4, 2001, but was renewed retroactively on August 6, 2002

under the Andean Trade Promotion and Drug Eradication Act (ATPDEA), part of the

Trade Act of 2002.71 ATPA, as amended by the ATPDEA, is scheduled to expire on

December 31, 2006.

The four ATPA beneficiaries are not automatically eligible for ATPDEA preferences.

ATPDEA authorizes the President to designate any ATPA beneficiary as eligible for

ATPDEA benefits provided the President determines the country has satisfied certain

requirements, including protection of IPR and internationally-recognized worker

rights. On October 31, 2002, the President designated all four ATPA beneficiaries as

ATPDEA beneficiaries.72

Table 2-8

U.S. imports for consumption from ATPA countries, 2002-2004

Item 2002 2003 2004

Total imports from ATPA countries (1,000 dollars) .... 9,611,482 11,639,464 15,489,766

Total under ATPA (1,000 dollars) . . . . . . . . . . . . . . . . . 1,000,816 5,836,032 8,359,258

Imports under ATPDEA (1,000 dollars) . . . . . . . . . . . . 212,377 4,211,384 6,522,889

Total under ATPA, excluding ATPDEA (1,000 dollars) . 788,439 1,624,648 1,836,369

Total under ATPA as a percent of total . . . . . . . . . . . . 10.4 50.1 54.0

Source: Compiled from official statistics of the U.S. Department of Commerce.

69 USITC Dataweb, compiled from official statistics of the U.S. Department of Commerce.

70 For a more detailed description of ATPA, including country and product eligibility, see

USITC, The Impact of the Andean Trade Preference Act, Tenth Report 2003, USITC publication

3725, Sept. 2004.

71 Public Law 107-210, Title XXXI.

72 President, “Proclamation 7616—To Implement the Andean Trade Promotion and Drug

Eradication Act,” 67 FR 67283-67291, Oct. 31, 2002.

A wide range of Andean products are eligible for duty-free entry under ATPA.

ATPDEA amended ATPA to provide duty-free treatment for certain products previously
2-22

excluded from ATPA, including certain textiles and apparel, footwear, petroleum and

petroleum derivatives, watches and watch parts assembled from parts originating in

countries not eligible for normal trade relations (NTR) rates of duty, and certain tuna

packaged in foil or other flexible airtight packages (not cans). In addition, certain

products previously eligible for reduced-duty treatment are now eligible for duty-free

entry under ATPA, including certain handbags, luggage, flat goods (such as wallets,

change purses, and eyeglass cases), work gloves, and leather wearing apparel.

Products that continue to be excluded from ATPA preferential treatment include textile

and apparel articles not otherwise eligible for preferential treatment under ATPDEA,

and certain agricultural products. Provisions related to textiles and apparel are

discussed in more detail later in this chapter. With the exception of tuna in foil or

flexible airtight packages, ATPDEA did not grant new benefits to agricultural products.

Thus, canned tuna, rum and tafia, and above-quota imports of certain agricultural

products subject to tariff rate quotas (primarily sugar, beef, and dairy products)

continue to be excluded from the program.

U.S. imports from ATPA countries were valued at $15.5 billion in 2004, an increase of

about 33 percent from $11.6 billion in 2003 (table 2-8). U.S. imports under ATPA

preferences in 2004 were valued at $8.4 billion and accounted for 54.0 percent of all

imports from ATPA countries. U.S. imports under ATPDEA were valued at $6.5 billion

and accounted for 78.0 percent of imports under ATPA in 2004. U.S. imports under

the original ATPA (ATPA excluding ATPDEA) accounted for the remaining 22.0

percent, valued at $1.8 billion.

In 2004, U.S. imports under ATPA increased from each of the four beneficiary

countries (appendix table A-12). Colombia remained the largest source of U.S. imports

under ATPA in 2004 and Ecuador ranked second; both were important suppliers of

petroleum under ATPDEA. Indeed, petroleum products accounted for 63 percent of

U.S. imports under ATPA in 2004 and represented four of the top 20 U.S. imports

under the program. Apparel was the next largest category of imports under ATPA,

accounting for 14 percent of such imports and six of the 20 leading imports under

ATPA. Since 2002, U.S. apparel imports from the region overall (not just under ATPA)

have grown by more than 75 percent. U.S. imports of apparel under ATPA increased

53 percent in 2004 compared with 2003, the first year that such imports were

recorded under the program. Other leading imports under ATPA in 2004 included

copper cathodes, fresh cut flowers, asparagus, and gold jewelry (appendix table

A-13).

Caribbean Basin Economic Recovery Act

In 2004, articles from 24 countries and territories in the Caribbean Basin and Central

America entering the United States free of duty or at reduced duties under the

Caribbean Basin Economic Recovery Act (CBERA) were valued at $10.8 billion in 2004
2-23

(table 2-9).73 CBERA has been operative since January 1, 1984. The act, as amended,

has no statutory expiration date.74 CBERA is the trade-related component of the

Caribbean Basin Initiative (CBI).75 CBI was launched in 1982 principally to promote

export-led economic growth and economic diversification in the Caribbean Basin

region.76

The United States-Caribbean Basin Trade Partnership Act (CBTPA), enacted on May

18, 2000, expanded the coverage of preferential tariff treatment for several articles

previously excluded under the original CBERA. Notably, the list of newly qualifying

articles included certain apparel, the assembly of which is an important Caribbean

Basin industry.77 The CBTPA also extended NAFTA-equivalent treatment (that is, rates

of duty equivalent to those accorded to Mexican goods under the same rules of origin

applicable under NAFTA) to a number of other products previously excluded from

CBERA, including certain tuna, petroleum products, certain footwear, and some

watches and watch parts.78

Table 2-9 shows U.S. imports under the expanded CBERA during 2002-04. After U.S.

imports tripled in 2001, the first full year following the amendment of CBERA with

CBTPA,79 growth of U.S. imports under the program continued, but at a reduced pace.

Such imports amounted to approximately $10.0 billion in 2002, $10.4 billion in 2003,

and $10.8 billion in 2004. Notably, during this three-year period, imports under the

expanded CBERA accounted for a declining share of all U.S. imports from CBERA

countries: 47.0 percent in 2002, 42.6 percent in 2003, and 39.2 percent in 2004.

Appendix table A-14 shows imports from each of the CBERA countries during the

period 2000-04.

73 The 24 countries designated for CBERA benefits are shown in appendix table A-14.

74 See Public Law 98-67, title II, 97 Stat. 384, 19 U.S.C. 2701 et seq. Relatively minor

amendments were made to CBERA by Public Laws 98-573, 99-514, 99-570, and 100-418.

CBERA was significantly expanded by the Caribbean Basin Economic Recovery Expansion Act

of 1990, Public Law 101-382, title II, 104 Stat. 629, 19 U.S.C. 2101, note.

75 For a more detailed description of the original CBERA, including country and product

eligibility, see USITC, Caribbean Basin Economic Recovery Act: Impact on the United States,

Fourteenth Report, 1998, USITC publication 3234, Sept. 1999.

76 President, “Address before the Permanent Council of the Organization of American

States,” Weekly Compilation of Presidential Documents, Mar. 1, 1982, pp. 217-223.

77 For CBTPA provisions related to textiles and apparel, see “Textile and Apparel-Related

Legislation” later in this chapter.

78Only watches assembled from parts originating in countries that are not eligible for NTR

tariff treatment were ineligible for duty-free treatment under CBERA.

79 Imports under CBERA as enhanced by CBTPA had already begun to enter the United

States in December 2000.
2-24

Table 2-9

U.S. imports for consumption from CBERA countries, 2002-2004

Item 2002 2003 2004

Total imports from CBERA countries (1,000 dollars) .. 21,254,828 24,499,559 27,555,492

Total under CBERA, including CBTPA (1,000 dollars) . 9,996,406 10,427,270 10,809,873

Total under CBTPA (1,000 dollars) . . . . . . . . . . . . . . . 7,078,010 7,462,065 7,908,041

Total under CBERA, excluding CBTPA (1,000 dollars) . 2,918,396 2,965,205 2,901,832

Total under CBERA (including CBTPA) as a

percent of total . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.0 42.6 39.2

Source: Compiled from official statistics of the U.S. Department of Commerce.

Appendix table A-15 shows the leading 25 imports entered under CBERA in 2004.

Wearing apparel products dominate the list. Thirteen products were knitted and not

knitted apparel; four products were petroleum derivatives; and the remaining eight

were products that had already qualified for benefits under the original CBERA, i.e.,

before the implementation of CBTPA. They were: methanol, cigars, articles of jewelry,

raw sugar, undenatured ethyl alcohol, two tariff items of pineapples, and automatic

circuit breakers.

U.S. Textile and Apparel Trade Program

This section summarizes recent developments affecting U.S. trade in textiles and

apparel. It covers (1) the completion of the 10-year phaseout of quotas under the WTO

on January 1, 2005; (2) U.S. quota activity in 2004; (3) China textile safeguard

actions; (4) changes in textile trade preferences for sub-Saharan Africa; (5) textile and

apparel provisions in new free trade agreements;80 (6) duty-free treatment for articles

made in Egypt containing inputs from Israel; (7) extension and modification of

temporary tariff relief on certain imported wool articles; and (8) U.S. imports of textiles

and apparel in 2004.

Uruguay Round Agreement on Textiles and Clothing

On January 1, 2005, the main provisions of the Uruguay Round Agreement on Textiles

and Clothing (ATC) were completed, marking the conclusion of the 10-year phaseout

of quotas that have shaped world trade in textiles and apparel for the past 30 years.

The ATC came into effect with the WTO Uruguay Round Agreements in 1995 and

superseded the Multifiber Arrangement (MFA), a series of arrangements negotiated

under the auspices of the General Agreement on Tariffs and Trade (GATT 1947) which

governed world trade in textiles and apparel and permitted importing countries to

80 U.S. free trade agreements are discussed more broadly in chapter 4.
2-25

establish quotas on such goods outside normal GATT rules during 1974-94.81 The ATC

required the United States, the European Union, and Canada to phase out their import

quotas on textiles and apparel from WTO member countries and “integrate” their

trade in such goods into the GATT in four stages over the 10-year transition period

ending January 1, 2005. Since January 1, 2005, WTO member countries have had

quota-free access to the textile and apparel markets of the major importing countries.

The importing countries may not establish any new quotas on such goods except as

provided under regular GATT rules.

The phaseout of quotas will likely lead to major changes in global trade in textiles and

apparel.82 China is expected to become the “supplier of choice” because of its ability to

make most textile and apparel products at any quality level at a competitive price.

However, under the terms of its WTO accession protocol, China agreed to a textile

safeguard mechanism that permits the United States and other WTO countries to limit

imports of Chinese textiles and apparel under certain conditions (as discussed below).

Other major exporting countries likely to benefit from quota elimination are India,

which has a large manufacturing base supplying a wide range of goods at competitive

prices, as well as Pakistan, and Bangladesh, which are likely to supply a narrower but

still significant range of goods. Countries eligible for trade preferences will likely be

competitive in the U.S. market, but some of them will likely lose market share because

the trade preferences may not be enough to keep them competitive in relation to

lower-cost Asian producers. Many other developing countries will likely lose market

share in the United States, particularly those that do not benefit from trade

preferences, economies of scale, competitive labor costs, or proximity to the U.S.

market.

U.S. Quota Activity in 2004

In 2004, the United States maintained import quotas on textiles and apparel from 43

countries, 38 of which are WTO members and, thus, eligible for ATC quota

liberalization (table 2-10). The 43 countries supplied 69 percent ($58 billion) of U.S.

imports of such goods in 2004. As required by the ATC, the United States eliminated all

remaining quotas on textiles and apparel for the 38 WTO countries on January 1,

81 The MFA was established to deal with market disruption in textile trade in developed

countries, while permitting developing countries to share in expanded export opportunities. It

provided a general framework and guiding principles for negotiation of bilateral agreements

between importing and exporting countries for the purpose of setting quotas and quota growth

rates, or for unilateral action by an importing country if an agreement could not be reached.

The MFA permitted the use of quotas without compensation, contrary to the general prohibition

against their use under the GATT.

82 Information in this paragraph is from the U.S. International Trade Commission, Textiles

and Apparel: Assessment of the Competitiveness of Certain Foreign Suppliers to the U.S.

Market (Inv. No. 332-448), USITC publication 3671, Jan. 2004, vol. I, ch. 3.
2-26

2005.83 The United States still maintains quotas on textiles and apparel from three

non-WTO countries—Belarus, Ukraine, and Vietnam (as of June 1, 2005)84—which

will be eligible for quota liberalization when they join the WTO.85

The availability of quantities for key products in 2004 was a major concern for

exporting countries. Under the “flexibility provisions” of U.S. bilateral textile

agreements, exporting countries could, under certain conditions, transfer unused

portions of quotas between years and between quota categories in a given year. In

particular, exporting countries could “carry forward” or borrow quota from the year

ahead.86 The use of carryforward reduced the base quota level for that year, but the

shortfall could be replaced by the use of carryforward from the following year. The

amount of carryforward varied by country, but could be as much as 9 percent for some

exporting countries. Because there are no quotas in 2005 against which to borrow,

exporting countries were unable to use carryforward in 2004. Moreover, in some

product categories, exporting countries that had used carryforward in 2003 (that is,

borrowed against 2004 quotas for use in 2003) had less quota available in 2004 than

in 2003.87

In a related development, the United States announced that it would delay entry in

2005 of any textile and apparel articles shipped from exporting countries in excess of

2004 quota limits. Because the United States administers annual quota limits based on

the date of export, not the date of entry, all goods shipped from exporting countries in

2004, even if the goods arrive in the United States in 2005, are subject to 2004 quotas.

Under procedures announced by the Committee for the Implementation of Textile

Agreements (CITA), an interagency group that administers the U.S. textile trade

83 The United States had already eliminated all remaining quotas for WTO members

Mexico and Singapore on Jan. 1, 2004, as required by the NAFTA and the U.S.-Singapore

FTA, respectively. On Aug. 28, 2003, the United States imposed a ban on imports of all goods

from Myanmar (Burma), a WTO member that was subject to U.S. quotas on textiles and

apparel.

84 The United States did not renew or extend the bilateral textile agreements with

non-WTO countries Laos or Russia providing for quotas on certain goods following expiration

of the agreements at the end of 2004.

85 The non-WTO countries are subject to quotas imposed by the President under section

204 of the Agricultural Act of 1956 (7 U.S.C. 1854), which authorizes the President to enter into

agreements with foreign governments to limit the export of textiles and apparel to the United

States, and the importation of such goods into the United States, and to issue regulations to

carry out such agreements.

86 The flexibility provisions also permitted exporting countries, under certain conditions, to

transfer unused portions of quotas from the prior year to the current year within the same

product category (“carryover”) and from one product category to another product category

within the same year (“swing”).

87 For example, a trade report noted that China’s 2004 quota for cotton knit shirts (cats.

338/339) was 2.4 percent lower than the 2003 quota, even though its allowable annual quota

growth rate was 0.6 percent. See Global Trade Advisor, “Carryforward for 2004,” issued by

IBERC (Sandler, Travis & Rosenberg, P.A.), Jan. 16, 2004, p. 2.
2-27

Table 2-10

Textiles and apparel: U.S. imports from countries with which the United

States had quotas in 2004

(Million dollars)

Country Imports

WTO countries:

Bahrain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204

Bangladesh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,066

Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408

Bulgaria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

Cambodia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,442

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,558

Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 636

Costa Rica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524

Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Dominican Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,066

Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564

El Salvador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,757

Fiji . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Guatemala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,959

Hong Kong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,959

Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,633

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,620

Jamaica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Korea, Republic of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,580

Kuwait . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Macau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,437

Macedonia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 764

Nepal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

Oman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,546

Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,938

Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Qatar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

Slovak Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Sri Lanka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,585

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,104

Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,198

Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,764

United Arab Emirates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260

Uruguay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Non-WTO countries:

Belarus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Laos1 ......................................................... 2

Russia1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332

Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Vietnam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,720

1 The bilateral agreement providing for U.S. import quotas on apparel from this country expired without

renewal on Dec. 31, 2004, and has not been renewed or extended as of June 1, 2005.

Source: Import data compiled from official statistics of the U.S. Department of Commerce, Office of Textiles and Apparel, retrieved June 6, 2005.
2-28

agreements program,88 all shipments in excess of 2004 quotas were held until

February 1, 2005, and then entry was permitted at a rate equal to 5 percent of the

applicable 2004 base quota per month, on a first-come, first-served basis (based on

date of shipment) for entries presented on and after February 1 (the staged entry will

continue for as many months as are needed until all the goods have entered the United

States).89 CITA is also applying similar rules to imports from China in excess of three

2004 safeguard limits (discussed below), except that entry based on 5 percent per

month of the applicable safeguard limit began on January 24, 2005. The CITA

procedures apply only to goods shipped in excess of the applicable 2004 quota or

safeguard; they do not apply to any goods shipped from exporting countries on or

after January 1, 2005.

China Textile Safeguard Actions

China became eligible for ATC benefits upon its accession to the WTO on December

11, 2001, and was able to “catch up” immediately with the ATC integration schedule of

other WTO countries, as provided for in its WTO accession protocol. However, under

the terms of this agreement, the United States and other WTO countries may impose

temporary safeguards (or quotas) on imports of Chinese textiles and apparel under

certain conditions.90 The textile safeguard provision permits WTO countries that

believe imports of Chinese textiles and apparel are, owing to market disruption,

threatening to impede the orderly development of trade in these goods, to request

consultations with China “with a view to easing or avoiding such market disruption.”91

Upon receipt of such a request, the safeguard provision requires China to hold its

shipments to a level no greater than 7.5 percent (6 percent for wool goods) above the

amount entered in the first 12 months of the most recent 14 months preceding the

request for consultations.92 The textile safeguard provision, scheduled to expire

December 31, 2008, does not permit any safeguard to remain in effect beyond one

year, without re-application, unless both countries agree.

The United States initiated its first textile safeguard actions with China in December

2003, when it simultaneously imposed safeguards and requested consultations with

China on cotton and manmade-fiber knit fabrics (category 222), brassieres and other

body-supporting garments (categories 349/649), and robes and dressing gowns

88CITA is chaired by the U.S. Department of Commerce and also includes the Office of the

United States Trade Representative and the U.S. Departments of State, Labor, and Treasury.

89CITA, “Entry of Shipments of Textiles and Apparel in Excess of 2004 Agreement Limits or

Certain China Safeguard Limits,” Federal Register (69 FR 72181), Dec. 13, 2004. In a Federal

Register notice of June 25, 2004 (69 FR 35586), CITA stated that “shipments exported in 2004

in excess of agreed limits are in violation of the terms” of U.S. bilateral agreements and the ATC

and that it reserves the right to deny entry to goods that have been shipped in excess of 2004

limits or to stage their entry in 2005.

90 Information on the China textile safeguard is from the WTO, Ministerial Conference,

Doha, Qatar, Report of the Working Party on the Accession of China, WT/MIN(01)3, Nov. 10,

2001, para. 242, pp. 46-47.

91 Ibid.

92 Ibid.
2-29

(categories 350/650).93 U.S. imports of these articles had increased substantially

during 2001-03, from 28 million to 363 million square meter equivalents (SMEs).94

The only other China textile safeguard action initiated by the United States during

2004, occurred in October 2004, when the United States imposed safeguards and

requested consultations with China on cotton, wool, and manmade-fiber socks

(332/432/632(pt.)).95 Imports of all cotton, wool, and manmade-fiber socks from

China had increased from 4 million SMEs in 2001 to 91 million SMEs in 2003. Because

the two countries did not reach agreement on mutually acceptable safeguard levels for

any of the articles specified above within 90 days of the request for consultations, the

safeguard levels initially set by the United States on the knit fabrics, brassieres, and

robes at the time of the request for consultations remained in effect for the 12-month

period ending December 23, 2004, while those on the socks will remain in effect for

the 12-month period ending October 28, 2005.

During October-December 2004, CITA accepted for consideration 12 requests for

textile safeguards that allege threat of market disruption, rather than actual market

disruption, by Chinese textile imports.96 On December 30, 2004, in response to a

motion filed by the U.S. Association of Importers of Textiles and Apparel, the U.S. Court

of International Trade (CIT) issued a preliminary injunction halting progress in all U.S.

textile safeguard actions based on a threat of market disruption.97 On January 31,

2005, the CIT denied a request by the Department of Justice for a stay of the

preliminary injunction pending its appeal to the Court of Appeals for the Federal

Circuit (CAFC). On April 27, 2005, the CAFC granted the U.S. Government’s motion

for a stay, pending appeal, of the temporary injunction issued by the CIT on December

30, 2004, that barred CITA from proceeding on the 12 petitions based on a threat of

market disruption.98 Thus, CITA resumed its consideration of these petitions.99

Subsequently, on June 28, 2005, the CAFC reversed the temporary injunction issued

by the CIT on December 30, 2004.100

93CITA notices published in the Federal Register of Dec. 29, 2003 (68 FR 74944-74949).

94 The data are official statistics of the U.S. Department of Commerce, and are available

on the website of its Office of Textiles and Apparel (OTEXA) at http://otexa.ita.doc.gov. 95 CITA notice published in the Federal Register of Nov. 1, 2004 (69 FR 63371).

96 Three of the 12 threat-based requests involved reapplication of safeguards on knit

fabrics, brassieres, and robes and dressing gowns that expired on Dec. 23, 2004. The other

nine requests involved articles from China that were still under quota in 2004.

97 See U.S. Association of Importers of Textiles and Apparel v. United States in “Decisions

of the United States Court of International Trade,” Slip Op. 04-162, published by the

Department of Homeland Security, Bureau of Customs and Border Protection, in Customs

Bulletin and Decisions, vol. 39, No. 4, Jan. 19, 2005.

98U.S. Association of Importers of Textiles and Apparel v. United States, Ct. No. 05-1209.

99 CITA notice published in the Federal Register of May 9, 2005 (70 FR 24397).

100United States Court of Appeals for the Federal Circuit, U.S. Association of Importers of

Textiles and Apparel v. United States, et al., Ct. No. 05-1209, June 28, 2005. For a discussion of

the CAFC decision, see Rossella Brevetti and Christopher S. Rugaber, “Textiles: Appeals Court

Reverses Injunction Barring China Threat-Based Safeguards,” International Trade Daily, June

29, 2005.
2-30

On May 23, 2005, the United States imposed safeguards and requested consultations

with China on knit cotton shirts and blouses (categories 338/339), cotton trousers

(347/348), and cotton and manmade-fiber underwear (352/652), following

determinations made by CITA in these three self-initiated textile safeguard cases that

imports of these Chinese products are, “due to market disruption and the threat of

market disruption, threatening to impede the orderly development of trade” in these

goods.101 In addition, on May 27, 2005, the United States imposed safeguards and

requested consultations with China on combed cotton yarn (301), men’s and boys’

woven cotton and manmade-fiber shirts (340/640), knit manmade-fiber shirts and

blouses (638/639), and manmade-fiber trousers (647/648), following

determinations made by CITA that imports of these Chinese products are, “due to a

threat of market disruption, threatening to impede the orderly development of trade”

in these goods.102

CITA also has accepted for consideration several other requests for China textile

safeguard actions, covering imports from China of certain synthetic filament fabric

(category 620), cotton and manmade-fiber robes and dressing gowns (categories

350/650), cotton and manmade-fiber brassieres and other body-supporting

garments (categories 349/649), and cotton and manmade-fiber sweaters

(categories 345/645/646); however, CITA has not announced its determination on

any of these products (as of June 23, 2005) as to whether the United States will request

consultations with China.103

Trade Preference Programs

As noted previously, the United States grants unlimited duty-free treatment to imports

of textiles and apparel made from U.S. yarns and fabrics in eligible beneficiary

countries under CBTPA, AGOA, and ATPDEA. These programs also extend duty-free

benefits to apparel made in the beneficiary countries from “regional fabrics,” subject

to a ceiling, or “cap,” on the quantity of such apparel that can enter duty-free under

each program. In addition, AGOA permits apparel made in LDBCs from fabrics made

in countries other than the United States or those in sub-Saharan Africa to enter free of

duty under the AGOA regional fabric cap (the “third-country fabric” provision).104

101 CITA notice published in the Federal Register of May 24, 2005 (70 FR 29722).

102 CITA notice published in the Federal Register of May 31, 2005 (70 FR 30930).

103 In addition, CITA received a request for a China textile safeguard action on cotton and

manmade-fiber curtains and draperies (categories 369 pt./666 pt.) on May 31, 2005, and a

revised request on these products on June 22, 2005; however, CITA has not announced its

determination as to whether this request provides the information necessary for it to consider the

request (as of June 23, 2005). For further information on China textile safeguard actions filed

with CITA, see the OTEXA website at http://otexa.ita.doc.gov. 104 In 2004, U.S. imports of textiles and apparel eligible for duty-free entry totaled $6.5

billion under the CBTPA, $1.8 billion under the AGOA, and $1.4 billion under the ATPDEA. The

data are official statistics of the U.S. Department of Commerce, and are available on the

OTEXA website at http://otexa.ita.doc.gov.
2-31

AGOA III modified the percentages to be used in calculating the cap on duty-free

benefits for apparel made of regional fabrics in sub-Saharan Africa. The cap was

reduced from 4.7931 percent to 4.747 percent of total U.S. apparel imports by

quantity for the one-year period that began on October 1, 2003; it is to increase

annually in equal increments to 7 percent for the one-year period beginning on

October 1, 2007, and remain at that level for the duration of AGOA. Duty-free

benefits for apparel made in LDBCs from third-country fabrics, which are provided for

under the regional fabric cap, remained unchanged at 2.3571 percent of total U.S.

apparel imports for the one-year period that began on October 1, 2003; however,

AGOA III increased the “sub-cap” for the LDBCs to about 2.6 percent and 2.9 percent

in the first two one-year periods of the extension, respectively, and then reduced it to

1.6 percent in the third and final one-year period.105

AGOA III also grants duty-free benefits to imports of apparel made in AGOA

countries with certain non-originating, or third-country, components (namely, collars,

cuffs, drawstrings, waistbands, belts attached to garments, patches, straps using

elastic, and padding and shoulder pads). This provision is in addition to an existing

AGOA rule that permits the use of third-country findings and trimmings (e.g., zippers)

if their value is not more than 25 percent of the cost of the components of the article.

AGOA III also increased the de minimis level for third-country fibers and yarns in

apparel from the original level of 7 percent to not more than 10 percent of the total

weight of the article, which would conform to the rule that was negotiated in the FTA

with Central America and the Dominican Republic, and which would provide AGOA

countries with additional sourcing flexibility.106 AGOA III also clarified that AGOA

duty-free benefits apply to apparel made in sub-Saharan Africa from a combination

of U.S. and AGOA fabrics or components and to African ethnic printed fabric, even if

made by machine, provided that the fabric meets certain criteria. In addition, AGOA III

extended duty-free benefits retroactive to the date of enactment of AGOA on

October 1, 2000, for apparel knit-to-shape in AGOA countries (the Trade Act of 2002

extended duty-free benefits to such apparel, but only on a prospective basis).

AGOA III also expressed the sense of Congress that the Executive Branch, including the

Bureau of Customs and Border Protection, CITA, and the U.S. Department of

Commerce should implement and enforce the textile and apparel provisions of AGOA

“broadly to expand trade by maximizing opportunities for imports of such articles”

from eligible AGOA countries.

105 For the one-year period from Oct. 1, 2003 through Sept. 30, 2004, the regional fabric

cap was 956,568,715 SMEs; the sub-cap for apparel made in LDBCs from third-country

fabrics was 470,411,241 SMEs. The “fill rates” were 37.6 percent for the regional fabric cap

and 68.1 percent for the sub-cap.

106 U.S. House of Representatives, Committee on Ways and Means, AGOA Acceleration

Act of 2004: Report to Accompany H.R. 4103, 108th Congress, 2nd session, H. Rept. 108-501,

p. 20.
2-32

On December 3, 2004, President Bush signed into law the Miscellaneous Trade and

Technical Corrections Act of 2004 (Public Law 108-429).107 Section 2004(k) of the Act

designated Mauritius as an LDBC under AGOA for one year, from October 1, 2004

through September 30, 2005. Accordingly, imports of apparel made in Mauritius

from third-country fabrics can enter free of duty, not to exceed 5 percent of the

sub-cap available for apparel imported under the special rule for LDBCs (or about

26.8 million SMEs). Except for this one-year designation, Mauritius and South Africa

are the only AGOA countries that are not designated as LDBCs.

Free Trade Agreements

In general, the rules of origin for textiles and apparel in U.S. free trade agreements

(FTAs)108 with Australia, Chile, Morocco, and Singapore,109 as well as proposed FTAs

with Central America (Costa Rica, El Salvador, Guatemala, Honduras, and

Nicaragua) and the Dominican Republic, and Bahrain, were modeled after those in

NAFTA, and require that imports of most articles from the FTA partner be assembled

from inputs made either there or in the United States, generally from the yarn stage

forward.110 Under this “yarn forward” rule, only the fibers may be from third

countries.111 A “fiber forward” origin rule applies to a limited number of products

(mainly yarns and knit fabrics), which must be made in an FTA party from the fiber

stage forward. The rules of origin for apparel generally apply only to the component

that determines the tariff classification of the garment—that is, the component that

provides the garment its “essential character.”112 The FTAs contain exceptions to the

yarn-forward rule of origin which are described below.

107 Information on Mauritius is from notices of USTR, “Notice of Change to . . . Chapter 98

of the Harmonized Tariff Schedule of the United States,” and CITA, “Limitations of Duty- and

Quota-Free Imports of Apparel Articles Assembled in Mauritius from Third-Country Fabric,”

published in the Federal Register of Feb. 24, 2005 (70 FR 9125) and Mar. 1, 2005 (70 FR

9929), respectively.

108 U.S. FTAs are described in more detail in chapter 4 of this report.

109Australia, Chile, Morocco, and Singapore together accounted for less than 1 percent of

total U.S. textile and apparel imports in 2004. U.S. imports of textiles and apparel totaled $243

million for Australia, $29 million for Chile, $75 million for Morocco, and $244 million for

Singapore. The U.S. FTAs with Chile and Singapore entered into force on Jan. 1, 2004. The U.S.

FTA with Australia entered into force on Jan. 1, 2005. The United States and Morocco

completed FTA negotiations during 2004, but the FTA did not enter into force during the year.

110 Most visible lining fabrics are also subject to the “yarn forward” rule for the FTAs with

Australia, Chile, Singapore, and Central America and the Dominican Republic. NAFTA allows

for visible lining fabrics to be made from the fabric stage forward.

111In general, the manufacturing progression in the textile sector is as follows: (1) fibers are

made into yarns, (2) yarns are made into fabrics, (3) fabrics are cut into components, and (4)

cut components are sewn into apparel and other finished goods.

112 This provision in the U.S. FTA with Central America and the Dominican Republic is

different from CBTPA rules of origin. CBTPA rules of origin generally require that all fabric

components of a garment be made of U.S.-formed fabric from U.S.-formed yarns or, with

limitations, of regionally formed fabric of U.S. yarn.
2-33

FTAs with Australia, Chile, and Singapore

The U.S. FTAs with Chile and Singapore provide for the immediate elimination of duties

on textiles and apparel that satisfy the rules of origin specified in the FTAs (“originating

goods”),113 while the FTA with Australia provides for the phaseout of most duties on

such goods over 10 years, or by January 1, 2014. The FTAs contain a de minimis

foreign content rule that permits up to 7 percent of the total weight of the originating

good to consist of fibers or yarns that are not made in the United States or the FTA

partner, except for elastomeric yarns, which must be made in an FTA partner.

The FTAs with Chile and Singapore, unlike the FTA with Australia, contain tariff

preference levels (TPLs) that provide duty preferences for specified quantities of certain

“non-originating goods” (i.e., goods that do not meet the FTA rules of origin because

they are made of yarns and fabrics from countries other than the United States and the

FTA partner). The two TPLs in the Chile FTA grant duty-free treatment to (a) 2 million

SMEs of non-originating cotton and manmade-fiber apparel for the first 10 years and

1 million SMEs thereafter, and (b) 1 million SMEs of non-originating cotton and

manmade-fiber fabrics.114 The Singapore FTA contains one TPL covering

non-originating cotton and manmade-fiber apparel, which is to expire after eight

years. The TPL quantity of 25 million SMEs in 2004 is to be reduced by 3.125 million

SMEs each year thereafter, reaching zero in 2012. The rates of duty under the TPL are

to be reduced in equal increments over a five-year period, reaching zero in 2008.

FTA with Central America and the Dominican Republic115

The FTA negotiated with Central America and the Dominican Republic provides for

significant and permanent enhancements of the CBTPA as it relates to textiles and

apparel. The FTA provides for the immediate elimination of duties on textiles and

apparel that meet the rules of origin specified in the FTA, retroactive to January 1,

2004.

The yarn-forward rule applicable to most apparel articles and woven fabrics under

the FTA also applies to certain apparel components (i.e., narrow elastic fabrics and

sewing thread). By contrast, the FTAs with Chile and Singapore permit the use of

third-country narrow elastic fabrics and sewing thread in apparel. The FTA with

Central America and the Dominican Republic contains a de minimis foreign content

rule that permits up to 10 percent of the total weight of the “essential character

component” to consist of non-originating fibers or yarns (excluding elastomeric yarns,

113 The United States also eliminated all remaining import quotas on textiles and apparel

from Singapore on Jan. 1, 2004. The United States did not maintain quotas on textiles and

apparel from Chile.

114 Once imports reach the level established under a TPL, they will be subject to the higher

NTR duty rates.

115 Information in this section is from the final text of the FTA, found on the USTR website at

www.ustr.gov.
2-34

which must be made entirely in an FTA partner),116 compared with a 7 percent de

minimis rule in the Chile and Singapore FTAs. In addition, other product exceptions to

the yarn-forward rule under the FTA with Central America and the Dominican

Republic are as follows:

S A “fabric forward” rule of origin applies to wool apparel; i.e., the wool fabric

must be made in an FTA partner country, regardless of the source of the yarns.

S A “single transformation” rule of origin applies to certain boxers, pajamas,

and girls’ dresses of woven fabrics; umbrellas; and textile luggage; i.e., the

articles must be cut and sewn in an FTA partner country, regardless of the

source of the fabrics.

The FTA also provides duty preferences for imports of certain non-originating goods

made in Central American countries and the Dominican Republic—that is, goods that

do not meet the FTA rules of origin—as follows:

S A TPL for Nicaragua grants duty-free entry for 10 years to cotton and

manmade-fiber apparel made from non-originating fabrics, provided that

the fabrics are cut and sewn into garments with regional thread. The TPL is

equal to 100 million SMEs of such apparel in each of the first five years of the

FTA; it is to be reduced in equal annual increments over the subsequent five

years, reaching zero after 10 years.

S A TPL for Costa Rica grants reduced duties (50 percent of the applicable NTR

duty rate) on tailored wool apparel made from non-originating fabrics, up to

a cap of 500,000 SMEs of such apparel in each of the first two years of the

FTA (the TPL is to be subject to review after 18 months).117

Duty-free entry for apparel made of woven fabrics from NAFTA partners Mexico and

Canada, up to a cap of 100 million SMEs in the first calendar year of the FTA with

Central America and the Dominican Republic, and as much as 200 million SMEs in

succeeding years, based on the growth of FTA country exports of qualifying apparel

made of woven fabrics. This “cumulation provision” is to enter into force only after

Canada and Mexico fulfill their promise to grant reciprocal cumulation benefits to U.S.

and Central America/Dominican Republic country exports of textiles and

apparel—that is, Mexico and Canada provide duty-free entry to goods made in

Central America and the Dominican Republic from U.S. woven fabrics.118

116 By contrast, the CBTPA (described above) contains a 7 percent de minimis rule, which

applies to the total weight of all fabric components in a garment.

117 Under Annex 3.27 of the FTA (Preferential Tariff Treatment for Wool Apparel Goods

Assembled in Costa Rica), Costa Rica and the United States shall consult 18 months after the

date of entry into force of the FTA regarding the operation of this Annex and the availability of

wool fabric in the region.

118 The cumulation provision is intended to spur integration of the North and Central

American textile industries and prepare for a highly competitive global market following quota

elimination in 2005. See Office of the United States Trade Representative, “Trade Facts: Free

Trade with Central America,” press release, Dec. 17, 2003.
2-35

Duty-free entry for apparel made in Central America and the Dominican Republic

from yarns and fabrics that are not available in the United States or Central

America/Dominican Republic in commercial quantities in a timely manner, regardless

of the source of the yarns and fabrics.119

Qualifying Industrial Zones Program for Israel and Egypt120

The 1985 United States-Israel Free Trade Area Implementation Act (IFTA) was

amended in 1996 to give the President authority to proclaim duty-free treatment for

articles made in “qualifying industrial zones” (QIZs) in Jordan and Egypt, provided

that the articles contain inputs that are the product of Israel.121Under authority granted

in section 9 of IFTA, the President proclaimed duty-free treatment for such articles and

delegated to USTR the authority to designate an area as a QIZ.122 Since the inception

of the program in 1996, USTR has designated 13 QIZs in Jordan. In December 2004,

USTR approved the request of Egypt and Israel to designate the first three QIZs in Egypt

(the Greater Cairo zone, the Alexandria zone, and the Suez Canal zone, which

includes an industrial area of Port Said). Duty-free benefits apply to qualifying articles

exported to the United States after December 29, 2004.

The QIZ program was intended to foster economic cooperation, closer ties, and

peaceful relations between Israel and its QIZ partners Egypt and Jordan. The QIZs

must encompass portions of Israel and Egypt or Israel and Jordan, but the areas do not

have to be contiguous. In general, for a QIZ article to enter the United States free of

duty, the article must be produced in and imported directly from the QIZ, and the value

added in the QIZ must be no less than 35 percent of the total value of the article. The 35

percent minimum content requirement can include costs incurred in Israel, Egypt, or the

United States. Separate agreements between Israel and its QIZ partners require that

the QIZ articles contain minimum Israeli content; specifically, Israeli content must

account for at least 11.7 percent of the value of the article made in the Egyptian QIZs

and at least 8 percent for an article made in the Jordanian QIZs.

119 The FTA identifies yarns and fabrics in “short supply” as those specified in Annex 401 of

NAFTA and those designated under the “commercial availability” provisions of CBTPA, AGOA,

and ATPDEA.

120 Except as noted, information in this section is from USTR, “United States, Egypt and

Israel to Launch Historic Trade Partnership,” press release, Dec. 10, 2004; “Fostering Trade in

the Middle East: An Israel-Egypt Trade Partnership,” fact sheet, Dec. 14, 2004; and “United

States-Israel Free Trade Area Implementation Act; Designation of Qualifying Industrial Zones,”

Federal Register (69 FR 78094), Dec. 29, 2004, p. 78094.

121 Public Law 99-47, approved June 11, 1985, 19 U.S.C. 2112, as amended by Public Law

104-234, approved Oct. 2, 1996.

122 Presidential Proclamation 6955 of Nov. 13, 1996, “To Provide Duty-Free Treatment of

Products of the West Bank and the Gaza Strip and Qualifying Industrial Zones,” Federal

Register, Nov. 18, 1996 (61 FR 58759).
2-36

U.S. imports of articles made in Jordan’s QIZs totaled $927 million in 2004,

representing a substantial increase over the 2003 level of $564 million and the 2000

level of $30 million. The imports from the Jordanian QIZs during 2000-04 consisted

almost entirely of apparel. According to a USTR report, the QIZs are Jordan’s

strongest job creator. Jordan estimates that more than 35,000 jobs have been created

in the QIZs.123 Investment in Jordan’s QIZs is currently at $85-$100 million and is

expected to grow to $180-$200 million. Similar benefits are expected to flow from the

QIZs in Egypt. Articles likely to be exported from the Egyptian QIZs include textiles and

apparel, which already are a major source of manufacturing activity in the QIZs.

Extension and Modification of Temporary Tariff Relief for Wool Articles

Title IV of the Miscellaneous Trade and Technical Corrections Act of 2004 extended

and expanded existing legislation providing U.S. tailored clothing manufacturers,

worsted wool fabric and yarn producers, and wool producers with tariff relief and

incentives to stabilize U.S. employment and production for two more years, through

December 31, 2007.124 The wool program was first established in Title V of the Trade

and Development Act of 2000 (TDA 2000), as amended and extended by the Trade

Act of 2002.125 Title V of TDA 2000 suspended duties on imports of fine wool yarns,

fibers, and tops used to make worsted wool fabrics and yarns, and suspended or

reduced duties on limited quantities of imported worsted wool fabrics suitable for use in

making men’s and boys’ suits, sport coats, and trousers. To implement the tariff relief

on the fabrics, Title V of TDA 2000 created TRQs126 for “coarse-micron” and

“fine-micron” worsted wool fabrics,127 provided for in subheadings 9902.51.11 and

9902.51.12 of the HTS, respectively.128

123 USTR, “United States, Egypt and Israel to Launch Historic Trade Partnership,” press

release, Dec. 10, 2004.

124 The “Wool Suit and Textile Trade Extension Act of 2004,” Title IV, Public Law 108-429,

Dec. 3, 2004, 118 Stat. 2600 et seq.

125 Title V of TDA 2000 was enacted on May 18, 2000; implemented by Presidential

Proclamation 7383 of Dec. 1, 2000 (published in the Federal Register of Dec. 6, 2000 (65 FR

76551)); and amended by the Trade Act of 2002 (Public Law 107-210, Aug. 6, 2002, 116 Stat.

933; wool provisions are at sec. 5101 et seq.).

126Under a TRQ, the United States usually applies a lower tariff rate to imports of an article

up to a specified amount, known as the in-quota quantity, and another, higher rate to any

imports in excess of that amount.

127 The coarse-micron fabrics have an average fiber diameter greater than 18.5 microns

and the fine-micron fabrics have an average fiber diameter of 18.5 microns or less (the lower

the number, the finer the fiber).

128 Title V of TDA 2000 authorizes the President to allocate the TRQ quantities among firms

that manufacture men’s and boys’ worsted wool tailored clothing in the United States, based on

the amount of worsted wool suits made in the prior calendar year. The President has delegated

this authority to the Secretary of Commerce.
2-37

The 2004 act reduced the duty on the coarse-micron fabrics entered under the TRQ

from 17.5 percent to 10 percent ad valorem and increased the TRQ in-quota quantity

by 1 million SMEs to 5.5 million SMEs for each year from 2005 to 2007.129 It extended

the duty suspension on the fine-micron fabrics,130 but replaced the TRQ for such

fabrics, which permitted 3.5 million SMEs to enter free of duty, with two new TRQs that

permit a total of 7.0 million SMEs to enter duty-free: a TRQ of 5.0 million SMEs for use

by U.S. manufacturers of men’s and boys’ tailored clothing (heading 9902.51.15) and,

for the first time, a TRQ of 2.0 million SMEs for use by U.S. producers of worsted wool

fabrics (heading 9902.51.16). The act also repealed the authority of the President to

modify the TRQ levels for 2005-07.

The 2004 act also extended and enhanced other benefits received by affected

domestic industries. It established the Wool Apparel Manufacturers Trust Fund, which

will be funded from duties collected on imports classified in HTS chapter 51 (wool fiber,

yarn, and woven fabric).131 Each tailored clothing manufacturer that receives a wool

payment in 2005 will, if continuing in business, receive two more annual payments (in

2006 and in 2007) equal to the amount received in 2005. The act extended the Wool

Research, Development, and Promotion Trust Fund for two more years, through 2008.

This trust fund, which is funded up to $2.25 million annually, is intended to assist the

sheep industry in improving the quality of wool produced in the United States, and in

the development and promotion of U.S. wool. The 2004 act also authorizes the

Secretary of Commerce to provide grants to domestic producers that made worsted

wool fabrics during 1999-2001, for use in men’s and boys’ tailored clothing. The

grants for each year from 2005-2007 total $2.666 million for producers of

fine-micron fabrics and $2.666 million for producers of coarse-micron fabrics,

allocated on the basis of each producer’s share of domestic production of the specified

fabrics during 1999-2001.

129 Under TDA 2000, the duty rate on coarse-micron fabrics under the TRQ was equal to

the duty rate on men’s worsted wool sport coats (17.5 percent) in order to temporarily remove a

tariff inversion in which the duty had been higher on the fabric than on clothing made from such

fabric. The 2004 legislation reduced the duty rate on the fabrics to 10 percent ad valorem,

rather than have it tied to the duty rate on the sport coats.

130 Senator Baucus has noted that a drafting error occurred in section 4002(a)(5) of the

2004 legislation, which mistakenly terminates the extension of duty reductions for the

fine-micron wool fabrics at the end of 2006, rather than 2007. He urged Members of the 109th

Congress to correct this technical error. See “Wool Trust Fund,” Congressional

Record—Senate, Nov. 20, 2004, p. S11798.

131 In 2004, duties collected on imports classified in HTS chapter 51 totaled $25.2 million.
2-38

U.S. Textile and Apparel Imports in 2004132

U.S. imports of textiles and apparel in 2004 grew by 11 percent over the 2003 level to

46.9 billion SMEs (valued at $83.3 billion). The growth mainly reflected a substantial

increase in imports from China, whose shipments rose by 41 percent to 11.7 billion

SMEs ($14.6 billion). Imports from China increased by 67 percent in 2003 and 125

percent in 2002, the first full year that China became eligible for ATC quota

liberalization. As a result, China’s share of total U.S. textile and apparel imports by

quantity rose to 25.0 percent in 2004 from 19.6 percent in 2003 and 13.0 percent in

2002. The increase in China’s shipments in 2004, as in 2002 and 2003, was

concentrated in goods that the United States had integrated into the GATT regime in

the first three stages under the ATC. Imports of such goods from China rose by 48

percent in 2004 to 10.3 billion SMEs, while imports of goods from China that were

integrated into the GATT regime on January 1, 2005 (i.e., still subject to quotas in

2004) rose by less than 1 percent to 1.3 billion SMEs. By contrast, imports of

GATT-integrated and non-integrated goods from all other countries rose by 4 percent

to 13.1 billion SMEs and 3 percent to 21.4 billion SMEs, respectively.

U.S. imports of textiles and apparel from NAFTA partners Mexico and Canada, the

largest volume suppliers after China with a 15.7 percent import share by quantity,

showed divergent trends in 2004. Imports from Mexico rebounded 4 percent to 4.1

billion SMEs ($7.8 billion), although they remained below their 2000 peak of 4.7

billion SMEs. Imports from Canada fell again in 2004, by 1 percent, to 3.3 billion SMEs

($3.1 billion); they peaked at 3.4 billion SMEs in 2002.

U.S. imports of textiles and apparel from other countries eligible for trade preferences

(Andean, Caribbean Basin, and sub-Saharan African countries) increased in 2004.

Imports from the Andean countries rose by 19 percent to 293 million SMEs ($1.4

billion), of which 73 percent, or 213 million SMEs, entered duty-free under ATPDEA.

The majority of the ATPDEA-eligible imports consisted of apparel made from regional

fabrics (186 million SMEs ($1.0 billion)). Imports from the Caribbean Basin countries

rose by 3 percent to 4.2 billion SMEs ($10.0 billion), of which 68 percent, or 2.8 billion

SMEs, entered duty-free under CBTPA. Imports of textiles and apparel from

sub-Saharan African countries rose by 11 percent in 2004 to 459 million SMEs ($1.8

billion), of which 88 percent, or 404 million SMEs, entered duty-free under AGOA.

Three-fourths of the sub-Saharan African shipments consisted of duty-free apparel

made in LDBCs from third-country fabrics (344 million SMEs ($1.3 billion)).

132 The data in this section were compiled from official statistics of the U.S. Department of

Commerce, OTEXA. Most of the data included in this section are available on the OTEXA

website, http://otexa.ita.doc.gov. The percentage figures included in this section are based on

unrounded quantity data (SMEs).
2-39

U.S. imports of textiles and apparel from Vietnam have greatly expanded since the

United States granted Vietnam NTR status in December 2001 (NTR status made imports

of Vietnamese goods eligible for much lower duty rates). Imports of Vietnamese textiles

and apparel totaled 905 million SMEs ($2.7 billion) in 2004, representing a 9 percent

increase over the 2003 level of 827 million SMEs ($2.5 billion), up substantially from

the 2001 level of 33 million SMEs ($49 million). The growth in Vietnam’s shipments

slowed considerably in 2004, after the United States established quotas on

Vietnamese textiles and apparel for the first time in May 2003. Among other major

suppliers of textiles and apparel in 2004, increases of 10 percent or more occurred in

the volume of imports from Pakistan, India, Indonesia, and Cambodia, while declines

occurred in imports from Taiwan, Bangladesh, Turkey, Hong Kong, and the

Philippines.

3-1

CHAPTER 3

Selected Trade Developments in the

WTO, OECD, and APEC

World Trade Organization

Doha Trade Negotiations in 2004

General Council Decision on the Doha Work Program

At the WTO General Council meeting on August 1, 2004, WTO members adopted a

decision (also referred to as the “July Package”) to refocus their attention on

negotiations under the Doha Development Agenda.1 Negotiations had lacked

direction since the September 2003 WTO Ministerial Conference in Cancdn, Mexico,

where ministers were unsuccessful in reaching agreement on how to direct negotiators

to advance the trade talks.2

The 2004 Decision addressed negotiations on agriculture; cotton; nonagricultural

market access; development issues including principles concerning development,

special and differential treatment, technical assistance, implementation, and the least

developed countries; services; other negotiating bodies, including the groups

negotiating rules, trade and environment, TRIPs, dispute settlement, and trade

facilitation; the relationship between trade and investment, interaction between trade

and competition policy, and transparency in government procurement (often

collectively known as the “Singapore issues”); as well as other elements of the work

program.3

The 2004 Decision included annexes setting out more detailed frameworks for the four

following key areas, summarized below:

S Annex A—Framework for establishing modalities in agriculture,

S Annex B—Framework for establishing modalities in market access for

nonagricultural products,

1 WTO, Doha Work Programme—Decision Adopted by the General Council on 1 August 2004,

WT/L/579, Aug. 2, 2004, found at http://www.wto.org, retrieved Nov. 30, 2004.

2 WTO, “DDA July 2004 Package: Meeting Summary 31 July—Round-the-Clock Meetings Produce

’Historic’ Breakthrough,” press release, July 31, 2004.

3 WTO, Doha Work Programme—Decision Adopted by the General Council on 1 August 2004.
3-2

S Annex C—Recommendations of the Special Session of the Council for Trade

in Services, and

S Annex D—Modalities for negotiations on trade facilitation.4

Annex A—Framework for establishing modalities in agriculture

The framework in annex A addresses the three pillars of the agricultural negotiations:

(1) domestic support, (2) export competition, and (3) market access. In addition, the

framework addresses the subjects of the least developed countries, recently acceded

members, monitoring and surveillance, as well as issues including sectoral initiatives

(also dubbed “zero-for-zero” initiatives), differential export taxes, and geographical

indications.

Domestic Support. To address domestic support, the members agreed in the

framework to a tiered formula for overall reduction and the final bound total

aggregate measurement of support (AMS).5 Under such a harmonizing formula,

members with higher levels of trade-distorting domestic support re to make greater

overall reductions. The first year of implementation would provide domestic support

not to exceed 80 percent of the base level, that is, a minimum 20 percent reduction in

domestic support. Should other measures such as total AMS, de minimis reductions, or

so-called blue box6 payments indicate that deeper overall reductions are required,

the 20 percent minimum reduction is not to be considered the “cap” or maximum for

cuts in domestic support. Substantial reductions in product-specific support are to be

agreed to prevent transfers of unchanged domestic support between different support

categories. De minimis reductions also are to be made by a percentage to be agreed.

Use of “blue box” support payments is to be permitted subject to certain rules. Blue box

support is not to exceed 5 percent of a member’s average total value of agricultural

production over an historical period to be established. Use of “green box”7 support

payments is to be reviewed, clarified, and monitored to ensure that such measures

have minimal or no trade-distorting effects on production.

Export Competition. The framework would provide for an agreed end date to

eliminate export subsidies; export credits and guarantees over 180 days, and

trade-distorting terms for such credits; trade-distorting practices in use by state trading

enterprises; and food aid that displaces commercial shipments. Developing countries

would have a longer period in which to phase out export subsidies.

4 Ibid.

5 The AMS calculates how much trade-distorting support is provided to a member’s agricultural

sector per year, including price support provided through administered prices or through certain types of

direct payments from governments.

6 “Blue box” payments are direct payments under production-limiting programs or direct payments

that require no production.

7 “Green box” payments are support payments or subsidies expressly permitted by members that

otherwise might be actionable under dispute settlement procedures.
3-3

Market Access. Tariff reductions are to be made through a tiered formula, whereby

tariff reductions are to be made from bound rates; each member is to make a

contribution (with the exception of the least developed countries); and tariff reductions

are to be progressive—that is, higher tariffs will undergo deeper cuts, with flexibility

for sensitive products. The number of bands, their thresholds, and reduction in each

band remain under negotiation. Discussion continues as well on the role of a tariff cap

in a tiered formula. Some most-favored-nation (MFN)-based tariff quota expansion

will be required for all sensitive products. Tariff escalation is to be addressed through a

formula to be agreed. The issue of tariff simplification remains under negotiation.

Proportionality as a form of special and differential treatment will be achieved by

requiring lesser tariff reduction commitments from developing-country members. A

special agricultural safeguard mechanism is to be established for developing-country

members. Subsequently, in November 2004, WTO members established a

subcommittee on cotton as part of the agriculture negotiating group to address the

issues raised at the 2003 Cancún ministerial and earlier by four sub-Saharan African

cotton producers (Benin, Burkina Faso, Chad, and Mali).8

Annex B—Framework for establishing modalities in market access for

nonagricultural products

The framework in annex B recognizes that additional negotiations are required to

reach agreement regarding the tariff cutting formula, the treatment of unbound tariffs,

flexibility for developing-country participants, the sectoral tariff component under

discussion, and nonreciprocal preferences for trade liberalization in nonagricultural

products. The annex B framework includes bracketed text in several places that

typically indicates a number that is illustrative or representative of the group’s

discussions, but not yet fully agreed.

Participants agree that negotiations on nonagricultural products aim to reduce or

eliminate tariffs as appropriate. This reduction or elimination includes tariff peaks,

high tariffs, tariff escalation, and nontariff barriers. The participants agree to follow a

formula approach under which the negotiating group will continue work on a

nonlinear formula applied on a line-by-line basis, which is to take full account of the

special needs and interests of developing- and least-developed-country participants,

including the principle of less-than-full reciprocity in reduction commitments for these

countries.

Regarding the formula, the participants agree that (1) product coverage is to be

comprehensive with no a priori exclusions; (2) tariff reductions are to start from bound

rates or unbound rates from some percentage (e.g., two times) above the MFN applied

rate in the base year; (3) the base year for MFN applied tariff rates is to be rates

applicable as of November 21, 2001; (4) credit is to be given for autonomous

8 WTO, “Agriculture Negotiations: Cotton Sub-Committee—Sub-Committee Set Up on Cotton,”

press release, Nov. 19, 2004.
3-4

liberalization by developing countries if the tariff lines have been bound on an MFN

basis in the WTO since the conclusion of the Uruguay Round (that is, December 15,

1993); (5) all non-ad valorem duties are to be converted to ad valorem equivalents

through a methodology to be determined, and then bound; (6) results of the

negotiations are to be finalized in Harmonized System 2002 nomenclature; and (7)

the reference period for import data is to be 1999-2001.

Participants with bindings covering less than some portion (e.g., 35 percent) of their

nonagricultural tariff lines would be exempt from making tariff reductions through the

formula, but they would be required to bind some portion (e.g., 100 percent) of their

nonagricultural tariff lines at an average level not exceeding the average of

developing countries’ bound tariffs.

The negotiating group is to continue to pursue sectoral tariff initiatives (also known as

reciprocal tariff elimination, or “zero-for-zero” initiatives). The group agrees to

provide developing countries with flexibility for their tariff reductions, such as applying

less-than-formula cuts to up to some portion (e.g., 10 percent) of the tariff lines if these

lines do not exceed some portion (e.g., 10 percent) of a member’s total import value, or

follow other such approaches. The group framework includes other text and provisions

to benefit the least-developed-country participants. Participants agree that the

possibilities for supplementary modalities—such as zero-for-zero sectoral tariff

elimination, sectoral harmonization, request and offer negotiations, etc.—should be

kept open pending agreement of the core modalities for tariffs. The participants also

agree to intensify their work on identifying, examining, and categorizing nontariff

barriers.

Annex C—Recommendations of the special session of the Council for Trade

in Services

The annex C framework directs members to submit their initial services offers as soon

as possible, and to establish as soon as feasible a date for a round of revised offers.

Members are to strive to make high-quality offers in particular in sectors and modes of

supply of export interest to developing and least developed countries. Members are to

aim for progressively higher levels of liberalization, with no a priori exclusion of any

service sector or mode of supply. Negotiations on rulemaking are to continue under

GATS Articles VI:4, X, XIII, and XV. The Special Session of the Council for Trade in

Services is to present a review of progress to the Trade Negotiations Committee,

including possible recommendations, at the WTO Sixth Ministerial Conference in

Hong Kong in December 2005.

Annex D—Modalities for negotiations on trade facilitation

Annex D aims to address aspects of GATT Articles V, VIII, and X to help expedite the

movement, release, and clearance of goods. Negotiations in this area also look to

enhance technical assistance and support for capacity building. The framework is to

take into account the principle of special and differential treatment for developing and

least-developed countries, extending beyond traditional transition periods for
3-5

implementation to include assistance to improve the implementation capacity of

developing and least-developed-country members. International organizations,

including the International Monetary Fund, Organization for Economic Cooperation

and Development (OECD), United Nations Commission for Trade and Development

(UNCTAD), World Customs Organization, and the World Bank are to be invited to

collaborate in this effort.

In November 2004, the Negotiating Group on Trade Facilitation, also called for under

Annex D, held its first meeting and adopted a work plan and meeting schedule. The

plan addressed clarification and improvement of aspects of Articles V, VIII, and X of

GATT 1994, which include the enhancement of technical assistance and support for

capacity building; effective cooperation between customs or any other appropriate

authorities on trade facilitation and customs compliance issues; special and differential

treatment for developing and least developed countries; identification of trade

facilitation needs and priorities; concerns related to cost implications of proposed

measures; and work with relevant international organizations.9

Developments during 2004

Following adoption of the Doha work program decision on August 1, 2004,

participants turned to developing these elements into a coherent package and

determining an appropriate timeframe. In late 2004 and into 2005, trade and

economic ministers met in a number of forums to discuss the next steps in the Doha

Development Agenda (DDA).10 At these meetings, participants confirmed a high

degree of commitment to achieve substantial progress by the WTO Sixth Ministerial

Conference—scheduled for the end of 2005 in Hong Kong, China—so as to be in

position to conclude the Doha negotiations in 2006.11

Since the March 2005 “mini-ministerial” held in Nairobi, Kenya to discuss progress in

the DDA, negotiators have focused on agriculture in pursuing a methodology to

calculate ad valorem equivalents for specific duties that currently exist in national tariff

schedules.12 According to the U.S. Department of State, the view at the Nairobi

meeting was that the next step was to gather the necessary data to begin developing

9 WTO, “WTO launches negotiations on trade facilitation,” press release, Nov. 15, 2004.

10 Such meetings included the Sixteenth APEC Ministerial Meeting, held in Santiago, Chile,

November 17-18, 2004; the World Economic Forum, held in Davos, Switzerland, January 26-30, 2005;

an informal meeting or “mini-ministerial” of trade ministers to discuss the Doha Round, held in Nairobi,

Kenya, March 3-4, 2005, in addition to regular formal and informal meetings of the DDA Trade

Negotiations Committee in February, March, and April 2005. U.S. Department of State, “Kenyan-Hosted

Informal Meeting of Trade Ministers on the Doha Round,” prepared by U.S. Secretary of State,

Washington D.C., message reference No. 41121, Mar. 9, 2005.

11 U.S. Department of State, “Meeting of the WTO Trade Negotiations Committee (TNC),

February 14, 2005,” prepared by U.S. Mission, Geneva, message reference No. 556, Mar. 2, 2005;

WTO, Trade Negotiations Committee, “Minutes of Meeting—Held in the Centre William Rappard on

14 February 2005,” TN/C/M/16, Apr. 21, 2005; U.S. Department of State, “Senior Officials Meeting on

the WTO and the DDA,” prepared by U.S. Mission, Geneva, message reference No. 471, Feb. 22, 2005.

12 U.S. Department of State, “Kenyan-Hosted Informal Meeting of Trade Ministers on the Doha

Round.”
3-6

tariff cutting formula. A second agricultural issue of note concerned cotton, which

participants at the meeting recognized will require serious efforts regarding the issue’s

trade and development aspects. In nonagricultural market access talks, negotiators

focused on pursuing a nonlinear formula for tariff reductions that would provide

developing countries with room for flexibility but be sufficiently ambitious to reduce

tariffs.13

For services, ministers recognized that more and higher quality services offers needed

to be made and revised during 2005, in particular with increased attention to

developing countries’ interest in services supply mode 4 (movement of personnel). The

negotiating group chair noted that 47 participants of a total of 148 WTO Members

had not made offers as of February 2005.14

On development issues, it was reported that developing countries appeared

increasingly aware that the practical gains from the DDA trade negotiations are likely

to result from the main areas under negotiation—such as agricultural and

nonagricultural market access, services, and trade facilitation—rather than from

more theoretical discussion of development issues and special and differential

treatment provisions.15 The least developed countries, however, reportedly look to

further progress on the Integrated Framework for Trade-Related Technical Assistance

to Least Developed Countries by the time of the Hong Kong ministerial.16

Regarding negotiations on geographical indications, it was reported that some

countries still pressed to extend the current negotiations beyond the present mandate

of a registry for wines and spirits, while others argued that no extension is appropriate

in the agriculture talks.17 The WTO Director-General has indicated that geographical

indications may instead be an issue for negotiation under the Agreement on

Trade-Related Aspects of Intellectual Property Rights.18 Concerning trade facilitation,

ministers stated that there did not appear to be any major obstacles to reaching

agreement by the Hong Kong ministerial. Regarding negotiations over WTO rules,

several countries made clear their expectations that work on antidumping rules should

progress in the same manner as work on agricultural and nonagricultural market

access, with some countries looking to move from a clarification phase to a phase

based on text. There was little discussion on other rules-related issues—such as more

transparent and effective review of regional trade agreements or the elimination of

fish subsidies—at the Nairobi meeting.19

13 Ibid.

14 U.S. Department of State, “Meeting of the WTO Trade Negotiations Committee (TNC),

February 14, 2005.”

15 U.S. Department of State, “Kenyan-Hosted Informal Meeting of Trade Ministers on the Doha

Round.”

16 Ibid.

17 Ibid.

18 Ibid.

19 Ibid.
3-7

Regular Activities

WTO Director-General

The term for the Director-General of the World Trade Organization, Dr. Supachai

Panitchpakdi, expires on August 31, 2005.20 On May 26, 2005, WTO Members

chose Pascal Lamy to be the fifth WTO Director-General, whose 4-year term is to run

from September 1, 2005 through August 31, 2009.21

Membership

In 2004, WTO membership increased to 148 with the accession of Nepal and

Cambodia, in April and October, respectively. Nepal and Cambodia are the first least

developed country members to complete the full WTO accession process. Another 31

countries remain as observers, in various stages of accession to the WTO. They are

Afghanistan, Algeria, Andorra, Azerbaijan, the Bahamas, Belarus, Bhutan, Bosnia

and Herzegovina, Cape Verde, Ethiopia, Equatorial Guinea, Iraq, Kazakhstan, Laos,

Lebanon, Libya, Russia, Samoa, São Tomé and Principe, Saudi Arabia, Serbia and

Montenegro, Seychelles, Sudan, Tajikistan, Tonga, Ukraine, Uzbekistan, Vanuatu,

the Vatican (Holy See), Vietnam, and Yemen. Tables 3-1 and 3-2 provide a list of WTO

Members and Observers in 2004.

Dispute Settlement

Twenty requests for WTO dispute settlement consultations were initiated in 2004,

according to the WTO (table 3-3). The United States was a complainant in five of these

requests, and a respondent to seven consultations (25 and 35 percent of the new

disputes, respectively). The European Union, typically another major trader frequently

involved in WTO dispute-settlement cases, was a complainant in five new cases, and a

respondent in four (25 and 20 percent of new disputes, respectively).

20 Following which Dr. Supachai is to assume the post of Secretary General of the UNCTAD on

Sept. 1, 2005. WTO, “Director-General Candidates,” press release, Press/393, Jan. 4, 2005.

21 WTO, “WTO Members Choose Lamy as Organization’s 5th Director-General,” press release,

Press/407, May 26, 2005.
3-8

Table 3-1

WTO membership as of December 31, 2004 (148)

Albania

Angola

Antigua and Barbuda

Argentina

Armenia

Australia

Austria

Bahrain

Bangladesh

Barbados

Belgium

Belize

Benin

Bolivia

Botswana

Brazil

Brunei Darussalam

Bulgaria

Burkina Faso

Burma

Burundi

Cambodia

Cameroon

Canada

Central African Rep.

Chad

Chile

China

China, Hong Kong

China, Macao

Chinese Taipei1

Colombia

Congo, Dem. Rep. of

Congo, Rep. of

Costa Rica

Côte d’Ivoire

Croatia

Cuba

Cyprus

Czech Rep.

Denmark

Djibouti

Dominica

Dominican Rep.

Ecuador

Egypt

El Salvador

Estonia

European Communities

Fiji

Finland

France

Gabon

Gambia

Georgia

Germany

Ghana

Greece

Grenada

Guatemala

Guinea

Guinea-Bissau

Guyana

Haiti

Honduras

Hungary

Iceland

India

Indonesia

Ireland

Israel

Italy

Jamaica

Japan

Jordan

Kenya

Korea

Kuwait

Kyrgyz Rep.

Latvia

Lesotho

Liechtenstein

Lithuania

Luxembourg

Macedonia

Madagascar

Malawi

Malaysia

Maldives

Mali

Malta

Mauritania

Mauritius

Mexico

Moldova

Mongolia

Morocco

Mozambique

Namibia

Nepal

Netherlands and

Netherlands Antilles

New Zealand

Nicaragua

Niger

Nigeria

Norway

Oman

Pakistan

Panama

Papua New Guinea

Paraguay

Peru

Philippines

Poland

Portugal

Qatar

Romania

Rwanda

Saint Kitts and Nevis

Saint Lucia

Saint Vincent and

the Grenadines

Senegal

Sierra Leone

Singapore

Slovak Rep.

Slovenia

Solomon Islands

South Africa

Spain

Sri Lanka

Suriname

Swaziland

Sweden

Switzerland

Tanzania

Thailand

Togo

Trinidad and Tobago

Tunisia

Turkey

Uganda

United Arab Emirates

United Kingdom

United States of America

Uruguay

Venezuela

Zambia

Zimbabwe

1 Formally the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu. Also referred to in this report as Taiwan.

Source: WTO, found at http://www.wto.org/.
3-9

Table 3-2

WTO observers as of December 31, 2004 (31)

Afghanistan

Algeria

Andorra

Azerbaijan

Bahamas

Belarus

Bhutan

Bosnia and Herzegovina

Cape Verde

Ethiopia

Equatorial Guinea

Iraq

Kazakhstan

Laos

Lebanon

Libya

Russia

Samoa

São Tomé and Principe

Saudi Arabia

Serbia and Montenegro

Seychelles

Sudan

Tajikistan

Tonga

Ukraine

Uzbekistan

Vanuatu

Vatican (Holy See)1

Vietnam

Yemen

1 WTO observers are to begin accession proceedings within 5 years of becoming an observer, with the

exception of the Holy See.

Source: WTO, found at http://www.wto.org/.

Organization for Economic Cooperation and Development

OECD Trade Committee

In 2004, the OECD Trade Committee met in February, April, and October for its 138th,

139th, and 140th sessions. At its February meeting, the committee held informal

consultations with the Trade Union Advisory Council and discussed the state-of-play in

the WTO Doha multilateral trade negotiations. The committee prepared for its annual

trade policy message to OECD ministers for the OECD Council ministerial meeting held

in May 2004 by reviewing the current developments in international trade and trade

policy.22 The committee considered the results of the June 2004 UNCTAD XI meeting,

which focused on enhancing the development of national development strategiesand

of global economic processes toward generating economic growth and development,

particularly in developing countries. The committee also debated recent work by the

Secretariat regarding environmentally harmful subsidies.23

At its April meeting, the committee reviewed its trade policy message to OECD ministers

for the May ministerial council meeting, and dealt with matters concerning its draft

program of work and budget for 2005-06.24 Members agreed that the priority would

continue to be the support of the WTO negotiations through objective and high-quality

analysis. There was also broad agreement on several areas that were likely to

continue to receive particular attention, including the costs and benefits of trade

liberalization in goods and services; the costs and benefits of structural adjustment; the

22 OECD, Summary Record of the 138th Session of the Trade Committee—17-18 February 2004,

TD/TC/M(2004)2/PROV, May 10, 2004.

23 UNCTAD, UNCTAD XI—The Spirit of São Paulo, TD/L.382, June 17, 2004.

24 OECD, Summary Record of the 139th Session of the Trade Committee—13 April 2004,

TD/TC/M(2004)4/FINAL, Oct. 27, 2004.
3-10

Table 3-3

WTO dispute-settlement consultations requested in 2004

Case No. Complainant Respondent Case

Date when

consultations

requested

1 DS305 United States Egypt Measures affecting imports of textile and apparel

products

Jan. 6, 2004

2 DS306 Bangladesh India Antidumping measure on batteries from Bangladesh Feb. 2, 2004

3 DS307 Korea EC Aid for commercial vessels Feb. 19, 2004

4 DS308 United States Mexico Tax measures on softDrinks and other beverages Mar. 18, 2004

5 DS309 United States China Value-added tax on integrated circuits Mar. 23, 2004

6 DS310 Canada United States Determination of the International Trade

Commission in hard red spring wheat from Canada

Apr. 15, 2004

7 DS311 Canada United States Reviews of countervailingDuty on softwood lumber

from Canada

Apr. 19, 2004

8 DS312 Indonesia Korea Antidumping Duties on imports of certain paper

from Indonesia

June 10, 2004

9 DS313 India EC Antidumping Duties on certain flat rolled iron or

non-alloy steel products from India

Aug. 7, 2004

10 DS314 EC Mexico Provisional countervailing measures on olive oil

from the European Communities

Aug. 24, 2004

11 DS315 United States EC Selected customs matters Sept. 27, 2004

12 DS316 United States EC and certain

Member States

Measures affecting trade in large civil aircraft Oct. 12, 2004

13 DS317 EC United States Measures affecting trade in large civil aircraft Oct. 12, 2004

14 DS318 Chinese Taipei1 India Antidumping measures on certain products from the

Separate Customs Territory of Taiwan, Penghu,

Kinmen, and Matsu

Nov. 1, 2004

15 DS319 EC United States Section 776 of the Tariff Act of 1930 Nov. 9, 2004

16 DS320 EC United States Continued suspension of obligations in the EC

concerning the meat hormonesDispute (DS26)

Nov. 10, 2004

17 DS321 EC Canada Continued suspension of obligations in the EC

concerning the meat hormonesDispute (DS48)

Nov. 10, 2004

18 DS322 Japan United States Measures relating to zeroing and sunset reviews Nov. 29, 2004

19 DS323 Korea Japan Import quotas onDried laver and seasoned laver Dec. 3, 2004

20 DS324 Thailand United States Provisional antidumping measures on shrimp from

Thailand

Dec. 14, 2004

1 Formally, the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu. Also referred to in this report as Taiwan.

Source: WTO website, ”Dispute Settlement: The Disputes—Disputes, chronologically—2004,” found at

http://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm#2004, retrieved Feb. 23, 2005.
3-11

development dimension of the latter two issues, in particular trade, investment, and

adjustment taking place among developing countries (so-called South-South trade);

special and differential treatment; and outreach to non-members. In addition, the

committee heard a number of other business items including a proposed project on

transatlantic economic cooperation, as well as trade and structural adjustment, and

business concerning a meeting of the chairs of the OECD committees responsible for

trade, investment, agriculture, competition policy, and development assistance.25

At its October meeting, the committee heard from the Secretariat about ongoing work

on a number of projects.26 Work in progress included projects on the following: trade

and structural adjustment, structural adjustment in textiles and clothing, regulatory

reform, analysis of nontariff measures, trade facilitation, the potential economic

impact of trade preference erosion, checklists for the services sector, public services, a

meeting among services experts, education services, trade in services in Southeast

Europe, trade in services in transition economies, trade policy dialogue with transition

economies, trade and agriculture, trade and competition, and trade and

investment.27

The committee also discussed the OECD project on trade and structural adjustment.

The project aims to identify policy implications when trade policy emerges as a key

element of structural adjustment for both developed and developing countries. Based

on studies of eight sectors—agriculture, fisheries, textiles, steel, shipbuilding, motor

vehicles, health services, and business process outsourcing—trade barriers were

shown to be ineffective in avoiding the need for adjustment or in facilitating the

adjustment process in all of the sectors, whereas an open trade environment fostered

competitiveness, improved access to inputs, and stimulated exports, thus

complementing the adjustment process.28

The committee also sponsored a regional forum on trade in October 2004 in Maseru,

Lesotho; and a global forum on trade in November 2004 in Bangkok, Thailand. In

addition, the participants in the OECD Arrangement on Officially Supported Export

Credits, and in the Working Party on Export Credits and Credit Guarantees,

considered a number of aspects regarding official export credits including premiums

for official export credits, tied versus untied aid, export credits in the aircraft sector,

credits affecting the environment, and how to combat bribery.29

25 Ibid.

26 OECD, 140th Session of the Trade Committee—Draft Agenda—18 and 20 October 2004,

TD/TC/A(2004)6/PROV, Oct. 1, 2004.

27 OECD, 140th Session of the Trade Committee—Work in Progress—18 and 20 October 2004,

TD/TC/RD(2004)6, Oct. 8, 2004.

28 Ibid.

29 Ibid.
3-12

Steel Subsidy Negotiations

In June 2001, the United States launched a multilateral initiative to help restore market

forces to world steel markets through negotiations with trading partners aimed at

eliminating inefficient excess capacity in the steel industry worldwide.30 The first high

level meeting on steel was convened in September 2001 at the OECD in Paris, attended

by representatives from governments and industry representatives of most of the major

steel-producing economies.31 Participants agreed that overcapacity and associated

production was a problem of global nature, and concurred that efforts needed to be

made to facilitate the reduction and closure of inefficient capacity. Participants held

several further high level meetings, establishing a Disciplines Study Group and a

Capacity Working Group in February 2002. The High Level Group (HLG) on Steel

instructed the Disciplines Study Group to: (1) compile an inventory of government

measures and industry practices that distort steel markets; (2) assess how the

multilateral disciplines relating to these measures and practices were operating in the

case of steel; and (3) develop options for strengthening existing disciplines.32

Meeting in December 2002, the participants in the HLG agreed to continue their peer

review of steel capacity developments and industry restructuring, instructed the

Capacity Working Group to evaluate options for facilitating plant closures, and

debated the development of possible disciplines.33 Participants noted two areas of

major concern regarding disciplines: (1) subsidies and related government supports,

and (2) trade remedies. The HLG instructed the Disciplines Study Group to develop

elements of an agreement for reducing or eliminating trade-distorting subsidies in

steel. The HLG also agreed to consider at a later stage voluntary commitments to

refrain from introducing new subsidy programs to maintain or enhance capacity.34

By April 2004, the Disciplines Study Group had drafted a negotiating text containing a

range of options entitled “Elements of an Agreement to Reduce or Eliminate

Trade-Distorting Subsidies in Steel,”35 shown in table 3-4. The HLG chairman stated

30 White House, “Statement by the President Regarding a Multilateral Initiative on Steel,” press

release, June 5, 2001.

31 Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, Canada, Chinese Taipei, Czech

Republic, Finland, France, Germany, Greece, Hungary, India, Italy, Japan, Kazakhstan, Korea,

Luxembourg, Mexico, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovak Republic, South

Africa, Spain, Sweden, Switzerland, Thailand, Turkey, Ukraine, United Kingdom, United States, as well

as the European Commission. OECD, “High Level Meeting on Steel,” press release,

PAC/COM/NEWS(2001)77, Paris, Sept. 18, 2001.

32 OECD, Directorate for Science, Technology and Industry, “Report to the High Level Group by the

Chairman of the Disciplines Study Group,” SG/STEEL(2002)24, Special Meeting at High-Level on Steel

Issues, Sept. 12-13, 2002.

33OECD, “OECD High Level Meeting on Steel: Progress Made on Cutting Subsidies, Overcapacity,”

press release, PAC/COM/NEWS(2002)105, Paris, Dec. 19, 2002.

34 Ibid.

35 OECD, Directorate for Science, Technology and Industry, “Elements of an Agreement to Reduce

or Eliminate Trade-distorting Subsidies in Steel—Draft Text—Complete Agreement,” SG/STEEL(2004)4,

Special Meeting at High-Level on Steel Issues, May 12, 2004.
3-13

Table 3-4

Draft OECD Text of Elements of an Agreement to Reduce or Eliminate

Trade-distorting Subsidies in Steel, April 2004

Preamble

Part I: General Provision

Article 1 - Scope

Part II: Prohibited Subsidies and Exceptions

Article 2 - Prohibited Subsidies

Article 3 - Exceptions

Part III: [Preferential Treatment/Developing Economies] and Economies in Transition

Article 4 - [Preferential Treatment/Developing Economies] [And Economies in Transition]

[Article 5] - [unagreed]

Part IV: Notification and Surveillance

Article 6 - Committee on Steel

Article 7 - Notifications and Requests for Information

Article 8 - Review of Measures

Part V: Remedies and Countervailing Measures

Article 9 - Dispute Settlement and Remedies

Article 10 - [Antidumping And] Countervailing Measures

Part VI: Transitional Measures

Article 11 - Existing Measures

Part VII: Final Clauses

Article 12 - Reservations

Article 13 - Review of Agreement

Article 14 - Signature, Acceptance and Accession

Article 15 - Entry into Force

Article 16 - Withdrawal

Article 17 - Transition to the WTO

Article 18 - Other Final Provision(s)

Article 19 - Depositary

Note.—Brackets indicate unagreed language.

Source: OECD.

that further drafting by the Disciplines Study Group was unlikely to be productive given

the important differences over key areas among parties, and that such differences

would need to be resolved at the political level before further progress could be made

toward a steel subsidies agreement.36

The parties held a further high level meeting on steel June 28-29, 2004.37 Although

they reaffirmed their commitment to stronger subsidy disciplines in the global steel

sector, negotiations effectively remained at an impasse in particular over the nature of

any exceptions to the overall subsidies prohibition, special and differential treatment

for developing countries, and whether any excepted subsidies should continue to be

countervailable under national trade remedy laws.38 Participants decided to shift the

focus of their talks to bilateral and plurilateral consultations in an effort to bridge their

differences on key issues.39

36 OECD, Directorate for Science, Technology and Industry, “OECD Special Meeting at High-Level

on Steel Issues—Draft Agenda,” SG/STEEL/A(2004)4/REV1, June 9, 2004.

37OECD, Directorate for Science, Technology and Industry, “Ideas for Advancing the Steel Subsidy

Talks,” June 15, 2004, Special Meeting at High-Level on Steel Issues, June 28-29, 2004.

38 USTR, “Other Multilateral Activities—Steel Policy,” The President’s 2004 Annual Report on the

Trade Agreements Program, March 2005, p. 251.

39 Ibid.
3-14

APEC

The Asia-Pacific Economic Cooperation (APEC) forum was established in 1989 as an

informal dialogue group among governments of the countries bordering the Pacific

Rim basin. The major purpose of APEC is to facilitate economic growth, cooperation,

trade, and investment in the Asia-Pacific region. APEC promotes economic dynamism

and a sense of community in the region. APEC decisions are made on the basis of

consensus and commitments are undertaken voluntarily.40 APEC leaders meet

annually to provide direction to the organization in the form of action-oriented work

programs that support APEC’s goals. APEC Ministers also meet to define the work

programs for APEC’s Committees, Working Groups, Senior Officials Meetings, and

Special Task Groups.41

There were 21 member economies in APEC in 2004: Australia; Brunei Darussalam;

Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; the

Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru;

Philippines; Russia; Singapore; Chinese Taipei; Thailand; the United States of

America; and Vietnam.42 In 2004, Chile hosted the APEC annual meetings and served

as APEC chair. Future APEC meetings will be held in Korea in 2005, Vietnam in 2006,

Australia in 2007, Peru in 2008, and Singapore in 2009.43

At the 2004 APEC Ministerial held on November 17-18, 2004 in Santiago, Chile,

Ministers addressed issues such as trade, security, transparency, anti-corruption,

human resource development, health, the knowledge-based economy, and

sustainable development. Ministers reaffirmed their commitments to achieving the

Bogor Declaration goals of free and open trade and investment by 2010.44 With

regard to the WTO, APEC Ministers endorsed the “July Package” agreement outlining

the framework for talks45 adopted by the WTO General Council on August 1, 2004,

and stressed their commitment to moving the WTO Doha Round trade negotiations

forward. APEC Ministers stressed the importance of agricultural reform,46 confirmed

40 For background information on APEC, see USITC, The Year in Trade: OTAP, 1994, USITC

publication 2894, pp. 35-39.

41 APEC, “APEC Groups,” found at http://apec.org/apec/apec_groups.html, retrieved Nov. 25,

2004. APEC has established four committees: Committee on Trade and Investment, Economic Committee,

Committee on Economic and Technical Cooperation and Budget and Management Committee.

42APEC Secretariat, “Member Economies,” found at http://www.apecsec.org.sg, retrieved June 6,

2004.

43 Ibid.

44At their 1994 meeting in Bogor, Indonesia, the APEC leaders set the goals of “free and open trade

and investment in the Asia-Pacific region by 2010 for developed economies and 2020 for developing

economies.” For additional information on the Bogor Declaration, see USITC, The Year in Trade, OTAP,

1995, USITC publication 2971, pp. 36-38 and USITC, The Year in Trade, OTAP, 1994, USITC publication

2894, pp. 35-39.

45 The “July Package” is described in the section on the WTO above.

46 In June, APEC Senior Officials issued a strong statement in support of the Doha negotiations,

recognizing that progress on agricultural reform was lagging. U.S. Department of State, telegram,

“APEC Trade Ministers Take Specific Position on Doha Negotiations,” message reference No. 212220Z,

prepared by U.S. Department of State, Geneva, July 21, 2004.
3-15

the need for substantially improved market access for nonagricultural goods, noted

the growing importance of services trade, requested that all members submit improved

offers by May 2005, and reaffirmed the importance of clarifying, strengthening and

improving WTO rules.47 APEC Ministers welcomed the launching of trade facilitation

negotiations, and agreed to work together to advance the talks in the WTO. They also

called for the prompt conclusion of accession negotiations for Russia and Vietnam.48

With respect to other topics, the APEC Ministers:

S Endorsed “APEC Best Practices for Regional Trade Arrangements and Free

Trade Agreements (RTAs/FTAs).”

S Approved a new Individual Action Plan reporting template to enhance

transparency and enable member economies to share information on their

RTAs/FTAs, beginning in 2005.49

S Commended and endorsed the 2004 Committee on Trade and Investment

“Annual Report on APEC’s Trade and Investment Liberalization and

Facilitation,” including the Collective Action Plans.50

S Agreed on a list of three information technology products—multi-chip

integrated circuits, digital multifunctional machines, and modems—to

forward to the WTO for possible tariff elimination.

S Recognized that corruption is one of the most serious threats to good

governance and the development of economies. APEC Ministers commended

the success of the APEC Anti-Corruption Experts Meeting held in Santiago,

Chile.

S Recognized the importance of the development of effective privacy

protections and avoiding barriers to information flows in the area of

electronic commerce.51

Other topics addressed by APEC Ministers included economic and technical

cooperation and capacity building; counter-terrorism and securing trade flows;

energy security, particularly the impact of higher oil prices on APEC economies;

macroeconomic issues; and ways to promote sustainable growth in the region.52

47APEC, “Sixteenth APEC Ministerial Meeting, Joint Statement,” Santiago, Chile, Nov. 17-18, 2004.

48 Ibid.

49 For information on the IAPs, see USITC, The Year in Trade: OTAP, 1995, USITC publication 2971,

August 1996, pp. 37-38.

50 For information on the CAPS, see USITC, The Year in Trade: OTAP, 1996, USITC publication

3024, April 1997, pp. 75-78.

51 APEC, “12th APEC Economic Leaders’ Meeting,” Santiago Declaration, Santiago, Chile,

Nov. 20-21, 2004.

52 Ibid.
3-16

Following the APEC Ministerial, APEC leaders met and issued a declaration that

reaffirmed the primacy of the multilateral trading system and welcomed the July

Package adopted by the WTO concerning the Doha multilateral trade negotiations.

APEC leaders agreed to work with a “renewed sense of urgency” to achieve a

balanced outcome that respects flexibility and takes into account the principles of

special and differential treatment.53 While APEC leaders agreed that RTAs and FTAs

played a constructive role in accelerating liberalization in the region, they did not

agree to an APEC business proposal to conduct a study of the feasibility study of a Free

Trade Area of the Asia-Pacific region.54

APEC leaders also launched the Santiago Initiative for Expanded Trade in APEC,

which is to focus on capacity-building as a complement to achieving free and open

trade in the region. The Initiative has two major parts: (1) trade and investment

liberalization, and (2) trade facilitation. Under this Initiative, APEC Ministers are to

recommend steps to further liberalize trade and investment in the region and to

continue working to reduce business transaction costs during 2005.55

In the area of security, APEC leaders encouraged their members to take measurable

steps toward the ratification and implementation of all basic universal antiterrorist

conventions. They welcomed the security-related measures adopted by APEC in 2004,

including steps to advance compliance with the International Maritime Organization’s

new ship and port security standards through cooperative effort, financial

contributions to the Asian Development Bank’s Regional Trade and Financial Security

Initiative, and efforts to strengthen the public health system to respond to regional

health threats.56

53 Ibid.

54 “APEC Members Focus on WTO, FTAs Rather than Regional Trade Goals,” International Trade

Daily, Nov. 23, 2004.

55 APEC, “12th APEC Economic Leaders’ Meeting,” Santiago Declaration, Santiago, Chile,

Nov. 20-21, 2004.

56 Ibid.
4-1

CHAPTER 4

U.S. Free Trade Agreements

The United States participated in five free trade agreements (FTAs) as of December 31,

2004.1 The U.S.-Chile FTA and the U.S.-Singapore FTA entered into force on

January 1, 2004. Negotiations for the U.S.-Australia FTA were completed in 2004,

and the FTA entered into force on January 1, 2005. The United States completed

negotiations for FTAs with Bahrain, Central America (Costa Rica, El Salvador,

Guatemala, Honduras, and Nicaragua) and the Dominican Republic, and Morocco

during 2004, but those FTAs did not enter into force during 2004.

The United States conducted—but did not complete—FTA negotiations with a number

of other countries during 2004. Following the President’s notification to Congress, the

United States initiated FTA negotiations with the Andean countries (Colombia,

Ecuador, and Peru, with Bolivia as an observer), Panama, and Thailand. The United

States also continued to participate in negotiations begun before 2004 with countries

of the Western Hemisphere toward the creation of the Free Trade Area of the

Americas (FTAA), and remained engaged in FTA negotiations with the South African

Customs Union (Botswana, Lesotho, Namibia, South Africa, and Swaziland). Also

during 2004, the President notified Congress of his intention to begin FTA negotiations

with Oman and the United Arab Emirates (UAE). Table 4-1 summarizes the status of

U.S. FTA negotiations as of December 31, 2004.

FTA Negotiations During 2004

U.S.-Australia Free Trade Agreement

The U.S.-Australia FTA is the first FTA between the United States and a developed

country since the 1988 U.S.-Canada FTA. In 2004, U.S. exports to Australia totaled

$13.5 billion, and U.S. imports were valued at $7.6 billion, making Australia the 13th

largest U.S. export market for goods, and 30th largest source of imports. Leading U.S.

exports to Australia in 2004 included aircraft and aircraft parts, trucks and truck

parts, passenger vehicles and vehicle parts, scientific and medical equipment, and

fertilizer. Leading U.S. imports from Australia in 2004 included meats, wine, motor

vehicles and vehicle parts, petroleum, aluminum, sweaters, nickel, and iron.2

1 Those agreements were: the U.S.-Israel FTA (1985), the North American Free Trade Agreement

(1994), the U.S.-Jordan FTA (2000), the U.S.-Chile FTA (2004), and the U.S.-Singapore FTA (2004).

2 USITC Data Web.
4-2

Table 4-1

Status of U.S. free trade agreement (FTA) negotiations as of December 31, 2004

FTA partner(s)

Negotiations

started

Negotiations

concluded

Agreement

signed

Australia1 ..................................... Mar. 19, 2003 Feb. 8, 2004 Aug. 3, 2004

Bahrain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 26, 2004 May 27, 2004 Sept. 14, 2004

Central America and the Dominican Republic:

El Salvador, Guatemala, Honduras, and

Nicaragua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Costa Rica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dominican Republic2 ..........................

Jan. 8, 2003

Jan. 8, 2003

Jan. 14, 2004

Dec. 17, 2003

Jan. 25, 2004

Mar. 15, 2004

May 28, 2004

May 28, 2004

Aug. 5, 2004

Morocco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 21, 2003 Mar. 2, 2004 June 15, 2004

Andean countries

Colombia, Ecuador, and Peru3 .................. May 18, 2004 Ongoing

Free Trade Area of the Americas (FTAA)4 . . . . . . . . . . . . Apr. 18, 1998 Ongoing

Panama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 26, 2004 Ongoing

South African Customs Union (Botswana, Lesotho,

Namibia, South Africa, and Swaziland) . . . . . . . . . . . June 2, 2003 Ongoing

Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 28, 2004 Ongoing

1 The U.S.-Australia FTA entered into force on Jan. 1, 2005.

2 The Dominican Republic was integrated into the FTA with the Central American countries on Aug. 5, 2004.

3 Bolivia is expected to join the Andean FTA at a later date.

4 FTAA includes Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile,

Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti,

Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, St. Vincent and the Grenadines, St. Lucia, St. Kitts

and Nevis, Suriname, Trinidad and Tobago, Uruguay and Venezuela.

Source: USTR, various press releases, found at http://www.USTR.gov.

The negotiations for the U.S.-Australia FTA were completed on February 8, 2004. The

Commission’s report on the FTA, in accordance with section 2104(f) of the Trade Act of

2002, was published in May 2004.3 USTR Robert Zoellick and Australian Trade

Minister Mark Vaile signed the FTA on May 18, 2004.4 President Bush signed U.S.

implementing legislation on August 3, 2004, and the U.S.-Australia FTA entered into

force on January 1, 2005.5

Upon its entry into force, the FTA eliminated more than 99 percent of tariffs on

industrial and consumer goods traded between the two countries. Industrial and

consumer goods account for 93 percent of the total value of U.S. goods exports to

Australia; remaining duties are to be phased out over a period of up to 10 years. The

FTA also eliminated duties on all U.S. agricultural exports to Australia, providing

expanded export opportunities for a range of U.S. agricultural goods. U.S. duties on

3 USITC, U.S.-Australia Free Trade Agreement: Potential Economywide and Selected Sectoral

Effects, investigation No. TA-2104-11, USITC publication 3697, May 2004.

4 USTR, “Landmark U.S.-Australian Free Trade Agreement Goes into Effect Today,”Jan. 1, 2005,

found at http://www.ustr.gov, retrieved Mar. 8, 2005.

5 USTR, “Landmark U.S.-Australia Free Trade Agreement Goes into Effect Today,” press release,

Jan. 1, 2005.
4-3

most U.S. agricultural imports from Australia are to be phased out over periods of 4 to

18 years. Duties will be maintained on sugar and certain dairy products. In addition,

for certain horticultural products, the FTA includes other mechanisms, such as

preferential TRQs and safeguards. The FTA also establishes a new forum for scientific

cooperation between the two countries to resolve specific bilateral animal and plant

health matters.6

Under the FTA, Australia is to accord substantial access to U.S. service suppliers,

including in the advertising, asset management, audio-visual, computer and related

services, education and training, energy, express delivery, financial services,

professional services, telecommunications, and tourism sectors.7 With respect to

government procurement, U.S. suppliers are granted non-discriminatory rights to bid

on contracts to supply Australian government entities, including all major procuring

entities and administrative and public bodies.8 The FTA also provides that digital

products—including software, music, video, and text—receive nondiscriminatory

treatment and makes permanent the current practice of not subjecting such

transmissions to customs duties. This is the first U.S. FTA to include provisions on

facilitating authentication of electronic signatures, encouraging paperless trade, and

establishing a program for cooperation on other e-commerce issues. The FTA also

establishes strong penalties for piracy and counterfeiting and requires both the United

States and Australia to authorize the seizure, forfeiture, and destruction of counterfeit

and pirated goods and the equipment used to produce them.9

U.S.-Bahrain Free Trade Agreement

The United States and Bahrain began FTA negotiations on January 26, 2004.

Negotiations were completed on May 27, 2004. The Commission’s report on the FTA,

in accordance with section 2104(f) of the Trade Act of 2002, was published in

September 2004.10 The U.S.-Bahrain FTA was signed on September 14, 2004.11 In

2004, U.S. exports to Bahrain totaled $278 million, and U.S. imports were valued at

$406 million. Leading U.S. exports to Bahrain in 2004 included passenger motor

vehicles and vehicle parts, aircraft and aircraft parts, and parts for equipment used in

metallurgy and metal foundries. Leading U.S. imports from Bahrain in 2004 included

women’s and men’s cotton trousers, petroleum, aluminum plates and sheets, and

methanol.

6 USTR, “U.S.-Australia FTA: Summary of the Agreement,” fact sheet, July 15, 2004, found at

http://www.ustr.gov, retrieved June 1, 2005.

7 Ibid.

8 Ibid.

9 Ibid.

10 USITC, U.S.-Bahrain Free Trade Agreement: Potential Economywide and Selected Sectoral

Effects, investigation No. TA-2104-15, USITC publication 3726, May 2004.

11 USTR, “U.S. and Bahrain Conclude Free Trade Agreement,” press release, May 27, 2004, and

USTR, “United States and Bahrain Sign Free Trade Agreement,” press release, Sept. 14, 2004.
4-4

Under the FTA, Bahrain is to provide immediate duty-free access for U.S. agricultural

exports in 98 percent of agricultural tariff lines and is to phase out all remaining tariffs

within ten years. The United States agreed to provide immediate duty-free access to

100 percent of Bahrain’s current exports of consumer, industrial, and agricultural

products to the United States. Trade in textiles and apparel is to be duty-free

immediately; the FTA requires that qualifying textiles and apparel contain either U.S.

or Bahraini yarn and fabric. The FTA contains a temporary transitional allowance for

textiles and apparel that do not meet these requirements.

Key service sectors covered by the FTA include audiovisual, express delivery,

telecommunications, computer and related services, distribution, healthcare, services

incidental to mining, construction, architecture, and engineering. Bahrain agreed to

give U.S. financial service suppliers the right to establish subsidiaries, branches and

joint ventures; to allow access for non-life medical insurance; to allow U.S.-based firms

to supply insurance on a cross-border basis (through electronic means) for key

markets including reinsurance, reinsurance brokerage, and marine, aviation, and

transportation insurance; to revise its insurance laws and regulations; and to allow

U.S.-based firms to offer cross-border financial information, data processing, and

financial advisory services.

U.S. Free Trade Agreement with Central America and

the Dominican Republic

The United States completed FTA negotiations with El Salvador, Guatemala,

Honduras, and Nicaragua on December 17, 2003; at that time, USTR announced that

negotiations with Costa Rica were ongoing, and that negotiations would be launched

with the Dominican Republic with the goal of integrating that country into the FTA with

the Central American countries. Negotiations with Costa Rica were completed on

January 25, 2004. Following the President’s notification to Congress of the intention to

enter into an FTA, the United States signed an FTA with the five Central American

countries on May 28, 2004.12 Negotiations with the Dominican Republic were

completed on March 15, 2004. The FTA with the Dominican Republic was signed on

August 5, 2004, integrating that country into the FTA with the Central American

countries.13 The Commission’s report on the FTA with Central America and the

Dominican Republic, in accordance with section 2104(f) of the Trade Act of 2002, was

published in August 2004.14

12 USTR, “United States and Central America Sign Historic Free Trade Agreement,” press release,

May 28, 2004.

13 USTR, “U.S., Central American Nations to Sign Free Trade Agreement,” press release, May 13,

2004.

14 USITC, U.S.-Central America-Dominican Republic Free Trade Agreement: Potential

Economywide and Selected Sectoral Effects, investigation No. TA-2104-13, USITC publication 3717,

August 2004.
4-5

In 2004, U.S. exports to the five Central American countries and the Dominican

Republic totaled $15.0 billion, and U.S. imports were valued at $17.7 billion. Leading

U.S. exports included electronic integrated circuits, petroleum, corn, dyed knitted or

crocheted cotton fabrics, and wheat. Leading U.S. imports included cotton sweaters,

pullovers, and sweatshirts; cotton t-shirts; men’s and women’s cotton trousers;

bananas; electronic integrated circuits; and coffee.15

Upon implementation, the FTA with Central America and the Dominican Republic is to

eliminate tariffs on more than 80 percent of U.S. exports of consumer and industrial

products, phasing out the rest over 10 years with tariffs on U.S. autos and auto parts to

be phased out within 5 years.16 More than 80 percent of U.S. imports from the Central

American countries and the Dominican Republic already enter the United States duty

free under the Generalized System of Preferences and the Caribbean Basin Economic

Recovery Act;17 approximately 99 percent of agricultural imports from the six

countries enter the United States duty free. The FTA will provide reciprocal access for

U.S. products and services and will not be subject to periodic renewal.18

U.S.-Morocco Free Trade Agreement

The United States and Morocco concluded FTA negotiations on March 2, 2004. The

Commission’s report on the FTA, in accordance with section 2104(f) of the Trade Act of

2002, was published in June 2004.19 USTR Robert Zoellick and Minister Delegate of

Foreign Affairs and Cooperation Taib Fassi-Fihri signed the U.S.-Morocco FTA on

June 15, 2004.20 The U.S. Congress subsequently enacted legislation approving and

implementing the FTA in July 2004, and President Bush signed this legislation on

August 17, 2004.21 The Moroccan Parliament ratified the agreement on January 20,

2005, although the FTA had not entered into force as of July 1, 2005.22

In 2004, U.S. exports to Morocco totaled $516 million, and imports from Morocco

were valued at $545 million. Leading U.S. exports to Morocco in 2004 included

aircraft and aircraft parts, corn, soybeans, and coal. Leading U.S. imports from

Morocco in 2004 included petroleum, electrical components, phosphates, olives,

15 USITC Data Web.

16 USTR, “Free Trade with Central America and the Dominican Republic: Highlights of the CAFTA,”

CAFTA Policy Brief, February 2005, found at http://www.ustr.gov, retrieved June 1, 2005.

17 The Generalized System of Preferences and the Caribbean Basin Economic Recovery Act are

described in chapter 2.

18USTR, “CAFTA Facts: CAFTA Benefits the American Family,” CAFTA Policy Brief, May 2005, found

at http://www.ustr.gov, retrieved June 1, 2005.

19 USITC, U.S.-Morocco Free Trade Agreement: Potential Economywide and Selected Sectoral

Effects, investigation No. TA-2104-14, USITC publication 3704, June 2004.

20 USTR, “United States and Morocco Sign Historic Free Trade Agreement,” press release, June 15,

2004.

21 USTR, 2005 Trade Policy Agenda and 2004 Annual Report, Mar. 1, 2005, p. 147, and White

House, Statement by the Press Secretary, “Statement on the US-Morocco Free Trade Agreement

Implementation Act,” Aug. 17, 2004.

22 Ibid., and “U.S., Morocco Agree to Delay Implementation of Free Trade Deal,”Inside U.S. Trade,

Apr. 29, 2005.
4-6

women’s and girls’ apparel, and anchovies.23 U.S. products entering Morocco

currently face an average U.S. tariff of more than 20 percent, while Moroccan

products are subject to an average tariff of 4 percent as they enter the United States.24

More than 95 percent of bilateral trade in consumer and industrial products are to

become duty-free immediately upon entry into force of the U.S.-Morocco FTA, with

tariffs on the remaining products to be eliminated within 9 years.25 Tariff phaseouts by

Morocco on most U.S. agricultural products are to occur in equal annual installments

of periods of 5 to 18 years. Tariffs for other U.S. agricultural products will be phased

out over 6 to 25 years. The FTA also establishes preferential TRQs for high quality and

standard-quality beef, whole birds, leg quarters, durum wheat, non-durum wheat,

almonds, and apples.26

Other FTA provisions include new market access for U.S. suppliers of audiovisual

services, computer and related services, distribution services, and construction and

engineering services, as well as new market access for U.S. banks, insurance

companies, telecommunications companies, and express delivery companies. Under

the FTA, U.S. firms are to be guaranteed a fair and transparent process to sell goods

and services to a wide range of Moroccan government entities. The FTA also is to

afford state-of-the art protection and nondiscriminatory treatment for U.S. digital

products such as software, music, text, and videos; protections for U.S. patents,

trademarks, copyrights, and trade secrets.27

U.S.-Andean FTA

During 2004, the United States commenced FTA negotiations with three Andean

countries Colombia, Ecuador, and Peru, with Bolivia attending as an observer.28 The

first round of talks began on May 18, 2004. Five more rounds of talks followed during

the year. Market access was a major concern for the United States and the Andean

countries during the negotiations.

In 2004, U.S. exports to Bolivia, Colombia, Ecuador, and Peru combined totaled $7.7

billion, with imports from the four countries valued at $15.5 billion. The current trade

relationship between the United States and the four Andean countries is largely

conducted within the framework of unilateral preferences extended by the United

States for imports under the 1991 Andean Trade Preference Act (ATPA) and its 2002

amendment, the Andean Trade Promotion and Drug Eradication Act (ATPDEA).29

23 USITC Data Web.

24 USTR, “United States and Morocco Sign Historic Free Trade Agreement,” press release, June 15,

2004.

25 USTR, “U.S. and Morocco Conclude Free Trade Agreement,” press release, Mar. 2, 2004.

26 USTR, “U.S.-Morocco Free Trade Agreement Agriculture Provisions,” July 6, 2005, found at

http://www.ustr.gov, retrieved March 8, 2005.

27 USTR, “U.S. and Morocco Conclude Free Trade Agreement,” press release, Mar. 2, 2004.

28 On Nov. 18, 2003, the administration formally notified Congress of its intention to initiate

negotiations for a FTA with Colombia, Peru, Ecuador, and Bolivia. USTR, “USTR Notifies Congress of

Intent to Initiate Free Trade Area with Andean Countries,” press release, Nov. 18, 2003.

29 ATPA and ATPDEA are discussed in more detail in chapter 2 of this report.
4-7

Free Trade Area of the Americas

Negotiations for the creation of the FTAA continued during 2004.30 The United States

and the 33 other Western Hemisphere countries launched the FTAA talks in April

1998, and began market access negotiations in May 2002. Their stated goal was to

conclude negotiations no later than January 2005 so that the FTAA agreement could

enter into force by no later than December 2005.31 In 2004, U.S. exports to the other

33 FTAA countries combined totaled $309.9 billion, and U.S. imports from those

countries were valued at $506.6 billion. NAFTA partners Canada and Mexico

accounted for more than 80 percent of that trade.

FTAA trade negotiators did not meet their target deadline of concluding the

negotiations by January 2005. The year 2004 was the second year of the U.S. and

Brazilian co-chairmanship of the Trade Negotiations Committee (TNC).32 The TNC

formally met once (in February) during 2004, compared to four TNC meetings held

during 2003. According to a report by the U.S. Government Accountability Office,

three factors that impeded progress in the FTAA negotiations during 2004 were: (1) the

lack of progress in resolving basic differences between the United States and Brazil on

key negotiation issues; (2) the shift of attention by the negotiating parties from the FTAA

to negotiations in other forums, especially bilateral, subregional, and WTO trade

negotiations; and (3) failure of the U.S. and Brazilian co-chairmanship and the

negotiating structure to facilitate progress.33

The United States, Brazil, and other countries participated in several formal and

informal meetings during 2004 to achieve consensus on elaborating a new

framework intended to give negotiators more flexibility in handling differences in the

economic and political situations among the 34 countries. While progress was

reported, discussions to produce guidance for negotiations on a common set of rights

and obligations were marked by disagreement about the scope and ambition of the

ultimate agreement.34 The TNC co-chairs held consultations in Washington, D.C. in

February 2005, where they continued to discuss the development of a common and

balanced set of rights and obligations to be provided to the FTAA negotiators.35

30A summary of FTAA developments through 2003 is provided in USITC, The Year in Trade, 2003,

USITC publication 3700, pp. 4-15 to 4-17, and prior reports in this series of reports.

31 At the Third Summit of the Americas in April 2001, and since that time, Venezuela has indicated

that it reserves its position with respect to the timing for concluding the negotiations and the date of entry

into force of the FTAA. “Third Summit of the Americas: Declaration of Quebec City, April 20-22, 2001,”

found at the FTAA website, http://www.ftaa-alca.org/Summits/Quebec/declara_e.asp, retrieved

Mar. 24, 2004.

32 Trade ministers of the respective FTAA countries are responsible for the ultimate oversight and

management of the negotiations. The trade ministers established the TNC at the vice-ministerial level to

provide direct guidance and administrative responsibilities for the FTAA negotiations. Additional

information on the TNC is available at the official FTAA website, http://www.ftaa-alca.org/TNC_e.asp. 33 U.S. Government Accountability Office, Free Trade Area of the Americas: Missed Deadline

Prompts Efforts to Restart Stalled Hemispheric Trade Negotiations: Report to the Chairman, Committee on

Finance, U.S. Senate, and to the Chairman, Committee on Ways and Means, House of Representatives,

March 2005, GAO-05-166, p. 18.

34 USTR, 2005 Trade Policy Agenda and 2004 Annual Report, pp. 155-156, found at

http://www.ustr.gov, retrieved June 6, 2005.

35 “TNC, FTAA–Trade Negotiations Committee Joint Communiqué of Co-Chairs,” Feb. 24, 2005,

FTAA.TNC/com/06, found at the FTAA website, http://www.ftaa-alca.org/TNC/TNCcom06_e.asp.
4-8

Progress in Other FTA Negotiations

U.S.-Panama FTA

The United States and Panama held two rounds of negotiations during 2004.

Negotiating groups also focused on discussing the initial market access offers that had

been exchanged to gain a better understanding of each other’s priorities and

sensitivities.36 An interim environmental review issued in June 2004 found that a

U.S.-Panama FTA likely would have a very small impact on U.S. production and

exports and, consequently, would have no negative impact on the U.S. environment.37

U.S. FTAs with Oman and the United Arab Emirates (UAE)

The United States signed trade and investment framework agreements (TIFAs) with

Oman and with the UAE during 2004;38 TIFAs promote the establishment of legal

protections for investors, improvements in intellectual property protection, more

transparent and efficient customs procedures, and greater transparency in

government and commercial regulations.39 On November 15, 2004, USTR Robert

Zoellick informed Congress of the administration’s intention to negotiate FTAs with

Oman and with the UAE. Interim environmental reviews found that FTAs with Oman

and with the UAE are likely to have very small impacts on U.S. production and exports

and, consequently, are likely to have no negative impact on the U.S. environment.40

FTAs with Oman and the UAE are part of the administration’s Middle East Trade

Initiative to promote trade integration and economic development in that region.41

North American Free Trade Agreement42

The North American Free Trade Agreement (NAFTA) came into effect January 1,

1994. In 2004, total two-way (exports plus imports) trade with NAFTA partners

increased by 12.4 percent over 2003, with U.S.-Canada trade totaling $418.9 billion

in 2004 and U.S.-Mexico trade totaling $248.0 billion (table 4-2). The U.S. trade

36 USTR, “Joint Statement by Panama and the United States on the Second Round of U.S.-Panama

Free Trade Negotiations,” press release, June 11, 2004.

37 USTR, Interim Environmental Review: U.S.-Panama Free Trade Agreement, found at,

http://www.ustr.gov, retrieved June 1, 2005.

38 USTR, “United States and United Arab Emirates Sign TIFA,” Mar. 15, 2004, and “United States

and Oman Sign Trade and Investment Framework Agreement,” July 7, 2004, press release, found at

http://www.ustr.gov, retrieved June 10, 2005.

39 USTR, “Middle East Free Trade Initiative: U.S. Regional Plan to Spur Economic Growth,” fact

sheet, Mar. 2, 2004, found at http://www.ustr.gov, retrieved June 6, 2005.

40 USTR, Interim Environmental Review of the U.S.-United Arab Emirates Free Trade Agreement,

May 2005, and Interim Environmental Review of the U.S.-Oman Free Trade Agreement, April 2005,

found at http://www.ustr.gov, retrieved June 1, 2005.

41 USTR, “Middle East Free Trade Initiative: U.S. Regional Plan to Spur Economic Growth,” Mar. 2,

2004.

42 U.S. bilateral relations with Canada and Mexico are described in chapter 5 of this report.
4-9

Table 4-2

U.S. trade with NAFTA partners, 2002-04

(Billion dollars)

Year NAFTA partner Exports Imports

Trade

balance

Two-way

(exports

plus imports)

2004 Canada ................ 163.2 255.7 -92.5 418.9

Mexico . . . . . . . . . . . . . . . . 93.0 155.0 -62.0 248.0

Canada and Mexico . . . . . . 256.2 410.7 -154.4 666.9

2003 Canada . . . . . . . . . . . . . . . . 148.7 224.0 -75.3 372.8

Mexico . . . . . . . . . . . . . . . . 83.1 137.2 -54.1 220.3

Canada and Mexico . . . . . . 231.8 361.2 -129.4 593.1

2002 Canada . . . . . . . . . . . . . . . . 142.5 210.4 -67.9 352.9

Mexico . . . . . . . . . . . . . . . . 86.1 134.1 -48.0 220.2

Canada and Mexico ...... 228.6 344.5 -115.9 573.3

Note.—Because of rounding, figures may not add to totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce.

deficit with NAFTA partners increased for a fourth consecutive year, by about 19

percent, with the deficit increasing to $154.4 billion in 2004 from $129.4 billion in

2003.

The following sections describe the major activities of the NAFTA Free Trade

Commission and the Commission for Labor Cooperation, and summarize major

activities with respect to the North American Agreement on Environmental

Cooperation, the Commission for Environmental Cooperation, and NAFTA binational

panel reviews in 2004.

Free Trade Commission

The NAFTA’s central oversight body is the NAFTA Free Trade Commission (FTC),

chaired jointly by representatives from the three member countries.43 The FTC is

responsible for overseeing implementation and elaboration of NAFTA, as well as for

its dispute settlement provisions.

At its July 2004 meeting, the FTC commemorated the tenth anniversary of the entry into

force of NAFTA and reconfirmed its commitment to deepening economic integration in

North America by building on NAFTA.44 With virtually all tariffs and quotas on North

American trade eliminated, the FTC considered additional ways to enhance trade and

investment by lowering transaction costs and other administrative burdens, such as

43 These are the U.S. Trade Representative, the Canadian Minister for International Trade, and the

Mexican Secretary of Economy.

44NAFTA entered into force on Jan. 1, 1994. USTR, “NAFTA,” 2005 Trade Policy Agenda and 2004

Annual Report, Mar. 1, 2005.
4-10

harmonizing standards and simplifying documentation requirements. The FTC is to

explore ways to further integrate the NAFTA economies by considering initiatives in

certain sectors, including manufacturing, services, business facilitation, compatibility

of standards, and the further elimination of technical barriers to trade. The FTC also

addressed the need for greater coordination with regard to energy policy and joint

development of energy transmission infrastructure.

Commission for Labor Cooperation

The Commission for Labor Cooperation was formed under the North American

Agreement on Labor Cooperation (NAALC), a supplemental agreement to NAFTA

that aims to promote effective enforcement of domestic labor laws and foster

transparency in their administration. Each NAFTA partner has established a National

Administrative Office (NAO) within its ministry of labor to serve as the contact point for

information, to examine labor concerns, and to coordinate cooperative work

programs.45

The NAALC provides for the review of public submissions related to the labor laws of

the NAFTA partners.46 In April 2004, the U.S. NAO held public hearings on

submission 2003-01, related to the enforcement of labor laws by Mexico.47 The issues

raised in the submission include freedom of association and the right to organize,

collective bargaining, occupational safety and health, minimum employment

standards (that is, minimum wage and overtime pay), and access to fair and

transparent labor tribunal proceedings at two garment manufacturing plants located

in the state of Puebla. The U.S. NAO issued a report on the submission in September

2004, and recommended ministerial consultations between the United States and

Mexico. The United States requested such consultations in October 2004, and Mexico

agreed in November 2004.48

In April 2004, the United States, Mexico, and Canada formally launched a website as

part of the Trinational Occupational Safety and Health Working Group. The site

(http://www.naalcosh.org) contains links to each government’s occupational safety

and health programs and practices, promotes education and public involvement, and

facilitates the dissemination of information about the occupational safety and health

activities of the three governments.

45 The NAO of the U.S. Department of Labor, Bureau of International Labor Affairs was renamed as

the Office of Trade Agreement Implementation in December 2004. Found at http://www.dol.gov/ilab/,

retrieved May 2, 2005.

46 USTR, “NAFTA,” 2005 Trade Policy Agenda and 2004 Annual Report, Mar. 1, 2005.

47 The submission was filed by the U.S.-based United Students Against Sweatshops and the

Mexico-based Centro de Apoyo al Trabajador and was later joined by the Canada-based Maquiladora

Solidarity Network. U.S. Department of Labor, Bureau of International Labor Affairs (ILAB), ILAB

National Administrative Office, “Public Hearing on U.S. National Administrative Office Submission

2003-01 (Puebla),” redacted version, Apr. 1, 2004, found at http://www.dol.gov/ilab/, retrieved

May 2, 2005.

48 USTR, “NAFTA,” 2005 Trade Policy Agenda and 2004 Annual Report, Mar. 1, 2005.
4-11

As part of their ongoing program of trilateral cooperation under the NAALC, the

United States, Mexico, and Canada presented a conference in December 2004 on the

Trafficking in Persons in North America, hosted by the U.S. Department of Labor in

Washington, D.C.49 The conference focused attention on trafficking as a growing

phenomenon in North America, allowed the exchange of information on approaches

by governments and nongovernmental organizations to combat trafficking, and

explored opportunities for enhanced trilateral cooperation on the issue.50

North American Agreement on Environmental

Cooperation

The Commission for Environmental Cooperation (CEC) was formed under the North

American Agreement on Environmental Cooperation (NAAEC), a supplemental

agreement to NAFTA designed to ensure that trade liberalization and efforts to protect

the environment are mutually supportive. The CEC is composed of (1) the Council,

made up of the environmental ministers from the United States, Canada, and Mexico;

(2) the Joint Public Advisory Committee, made up of five private citizens from each of

the NAFTA parties; and (3) the Secretariat, made up of professional staff, located in

Montreal, Canada. At the June 2004 Council Session in Puebla, Mexico, the Council

pledged to develop a strategic plan to address issues related to trade and the

environment, as well as to continue its cooperation with the NAFTA Free Trade

Commission as set out in the Puebla Declaration.51

Articles 14 and 15 of the NAAEC are intended to provide citizens and

nongovernmental organizations with a mechanism to aid in the enforcement of

environmental laws in the NAFTA countries. Article 14 governs alleged violations

submitted for review by the CEC. It sets forth specific guidelines regarding the nature of

valid submissions and appropriate complaining parties. Article 15 outlines the

Secretariat’s obligations in considering the submissions and publishing findings in the

factual record.52 Under Article 14, nine files remained active in 2004, three of which

were submitted in 2004 (table 4-3). Under Article 15, 10 files that have published

factual records remained active in 2004, 4 of which involved Canada, 5 involved

Mexico, and 1 involved the United States (table 4-4).

49 U.S. Department of Labor, Bureau of International Labor Affairs, as host under the NAALC,

“Conference on Trafficking in Persons in North America,” Dec. 6-7, 2004, Washington DC, found at

http://www.naalctip.org/, retrieved May 2, 2005.

50 USTR, “NAFTA,” 2005 Trade Policy Agenda and 2004 Annual Report, Mar. 1, 2005.

51 CEC, “Puebla Declaration—Eleventh Regular Session of the CEC Council,” found at

http://www.cec.org, retrieved Mar. 2, 2005.

52 NAAEC Articles 14 and 15, found at http://www.cec.org, retrieved Jan. 14, 2004.
Table 4-3

Active Article 14 files, through 2004

Name Case First Filed Country StatusTarahumara SEM-00-006 June 9, 2000 Mexico The Secretariat posted a request for information relevant to the factual 

site in September 2003.

Ontario Logging SEM-02-001 Feb. 6, 2002 Canada The Secretariat posted a request for information relevant to the factual 

site in June 2004.

Pulp and Paper SEM-02-003 May 8, 2002 Canada The Secretariat posted a request for information relevant to the factual 

site in March 2004.

Lake Chapala II SEM-03-003 May 23, 2003 Mexico The Secretariat considering whether to recommend a factual record sinAlca-Iztapalapa II SEM-03-004 June 17, 2003 Mexico The Secretariat recommends development of a factual record in Augus

submission in January 2005.

Montreal Technoparc SEM-03-005 Aug. 14, 2003 Canada The Secretariat posted a request for information relevant to the factual 

site in February 2005.

Coal-fired Power

Plants

SEM-04-005 Sept. 20, 2004 United States The Secretariat requested a response from the concerned government 

February 2005.

Ontario Logging II SEM-04-006 Oct. 12, 2004 Canada The Council voted to instruct the Secretariat to develop a Factual Recor

February 2005.

Quebec Automobiles SEM-04-007 Nov. 3, 2004 Canada The Secretariat considering whether to recommend a factual record sin

February 2005.

4-12

Source: North American Commission for Environmental Cooperation, found at http://www.cec.org/citizen/index.cfm?varlan=english, retrieved Mar. 2, 2005.
4-13

Table 4-4

Factual records published in 2004, under Article 15 of the North

American Agreement on Environmental Cooperation

Name Case First Filed Country Date published

BC Logging SEM-00-004 Mar. 15, 2000 Canada Aug. 11, 2003

Molymex II SEM-00-005 Apr. 6, 2000 Mexico Oct. 8, 2004

Cozumel SEM-96-001 Jan. 17, 1996 Mexico Oct. 24, 1997

BC Hydro SEM-97-001 Apr. 2, 1997 Canada June 11, 2000

Río Magdalena SEM-97-002 Mar. 15, 1997 Mexico Dec. 11, 2003

Oldman River II SEM-97-006 Oct. 4, 1997 Canada Aug. 11, 2003

BC Mining SEM-98-004 June 29, 1998 Canada Aug. 12, 2003

Aquanova SEM-98-006 Oct. 20, 1998 Mexico June 23, 2003

Metales y Derivados SEM-98-007 Oct. 23, 1998 Mexico Feb. 11, 2002

Migratory Birds SEM-99-002 Nov. 19, 1999 United States April 24, 2003

Source: North American Commission for Environmental Cooperation, found at

http://www.cec.org/citizen/index.cfm?varlan=english, retrieved Mar. 2, 2005.

Commission for Environmental Cooperation53

The CEC is governed by the Council that implements the NAAEC. The CEC continued its

efforts in 2004, a significant portion of which was its annual work program on trade

and environment issues. Projects under this work program aim to improve cooperation

among the NAFTA countries toward environmental sustainability in open markets and

stewardship of the North American environment. The CEC agreed to refocus its work to

develop a new work plan based on three priorities set out in the Puebla Declaration: (1)

information for decisionmaking, (2) trade and environment, and (3) capacity

building54 with a focus on Mexican institutions. As part of this effort, the NAFTA 10(6)

group55 is working with the Council to draft a trade and environment strategic plan

that will guide the CEC’s trade and environment work for the next five years.56 In

developing the strategic plan, the NAFTA partners are to consider the following:57

S Establishing key elements that enhance markets for renewable energy;

S Addressing issues concerning trade pathways of invasive species;

S Enforcement of environmental laws as this affects trade, including

enforcement of domestic laws that address transboundary trade in

environmentally sensitive goods and materials;

S Environmental procurement practices;

53 USTR, “Other Multilateral Activities,” 2005 Trade Policy Agenda and 2004 Annual Report,

Mar. 1, 2005.

54 U.S. Department of State telegram, “CEC alternative representatives meeting in Montreal,

September 19-20, 2004,” Sept. 20, 2004, message reference No. 2516, prepared by U.S. Embassy,

Ottawa.

55The NAFTA 10(6) group is named after the provision of the NAAEC that addresses CEC

cooperation with the NAFTA itself, and is comprised of both trade and environment officials from the

three NAFTA countries.

56 USTR, “Other Multilateral Activities,” 2005 Trade Policy Agenda and 2004 Annual Report,

Mar. 1, 2005.

57 Ibid.
4-14

S Market-based approaches that promote sustainable use of natural resources;

and

S Sharing information, as appropriate, on methodologies for conducting

environmental reviews of trade agreements with a view to providing a better

assessment of the environmental effects of NAFTA.

In August 2004, the CEC Secretariat released its Article 13 report, “Maize and

Biodiversity: The Effects of Transgenic Maize in Mexico: Key Findings and

Recommendations.”58 The CEC is also preparing a third North American Symposium

on Assessing the Environmental Effects of Trade, scheduled for fall 2005.59 In August

2004, the CEC issued a call for papers examining trade and environment issues

related to investment and growth in North America; the final papers will be presented

at the symposium.60

United States and Mexico agreed in 1993 on arrangements to help border

communities with environmental infrastructure projects to further the goals of NAFTA

and the NAAEC.61 The Border Environment Cooperation Commission (BECC) and the

North American Development Bank (NADB) were established to develop and finance

needed environmental infrastructure projects along the U.S.-Mexico border. The BECC

and the NADB are now working with more than 100 communities throughout the

U.S.-Mexico border region to address their environmental infrastructure needs.62As

of September 30, 2004, the NADB had authorized $689.2 million in loans and grants

to partially finance 83 infrastructure projects certified by the BECC with an estimated

cost of $2.3 billion.63

Dispute Settlement

The NAFTA contains dispute settlement provisions covering a variety of areas.64

Developments during 2004 are described below with respect to NAFTA Chapter 11

investor-state disputes and NAFTA Chapter 19 binational reviews of final

determinations of antidumping and countervailing duty cases.

58 The findings of this report are described in the section on Mexico in chapter 5 of this report. U.S.

Department of State telegram, “(CEC) Mexican Maize Symposium: Anti-GMO Emotion Drowns Out

Science on Introgression of Transgenes into Mexican Landraces,” Mar. 26, 2004, message reference

No. 2496, prepared by U.S. Embassy, Mexico City. The CEC Secretariat was asked by members of the

public in 2002 to investigate the effects of transgenic maize in Mexico under NAAEC Article 13. CEC,

“Latest News—Maize and Biodiversity report released,” Montreal, Aug. 11, 2004, found at

http://www.cec.org, retrieved Mar. 3, 2005.

59 Ibid.

60 Ibid.

61 USTR, “North American Free Trade Agreement,” 2005 Trade Policy Agenda and 2004 Annual

Report, Mar. 1, 2005.

62 Ibid.

63 Ibid.

64 NAFTA Secretariat, “Overview of the Dispute Settlement Provisions of the North American Free

Trade Agreement (NAFTA),” found at

http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=8#chap11, retrieved July 13,

2005.
4-15

Chapter 11 Dispute Settlement Developments

NAFTA Chapter 11 contains provisions designed to protect cross-border investors and

facilitate the settlement of investment disputes. An investor who alleges that a NAFTA

country has breached its investment obligations under Chapter 11 may, at its option,

pursue arbitration through internationally recognized channels65 or pursue remedies

available in the host country’s domestic courts under NAFTA Chapter 11. A key feature

of the Chapter 11 provisions is the enforceability in domestic courts of final awards

made by arbitration tribunals.66

Trade ministers for the NAFTA partners reviewed the Chapter 11 dispute-settlement

provisions in 2001, clarifying in the process elements under Article 1120(2) regarding

timely public access to documents submitted for arbitration under Chapter 11, with

necessary exceptions for business confidential, privileged, or protected information.

The ministers reaffirmed that Chapter 11 provisions require a “minimum standard of

treatment in accordance with international law” under Article 1105(1).67 In 2002,

trade ministers agreed that the necessary steps should be taken to facilitate public input

concerning the Chapter 11 dispute resolution process.68

In 2003, trade ministers agreed on two elements to increase the transparency of

dispute resolution taking place under Chapter 11 procedures,69 one concerning

written submissions (amicus curiae briefs) to investor-state tribunals by nondisputing

parties,70 the other concerning a standard form to initiate arbitration under NAFTA

Article 1119.71 Separately, the United States and Canada affirmed that they will

consent to open public hearings in Chapter 11 disputes to which either is party, and will

request similar consent from investors involved in such dispute hearings.72

65 Such as the International Centre for the Settlement of Investment Disputes (ICSID) at the World

Bank or Rules of the United Nations Commission for International Trade Law (UNCITRAL Rules).

66 NAFTA Secretariat, “Overview of the Dispute Settlement Provisions of the North American Free

Trade Agreement (NAFTA).”

67USTR, “Free Trade Commission Clarifications Related to NAFTA Chapter 11,” July 31, 2001, found

at http://www.ustr.gov, retrieved Jan. 8, 2002. For further details, see The Year in Trade: OTAP, 2001,

USITC publication 3510, May 2002, p. 3-2.

68 For further detail, see The Year in Trade: OTAP, 2002, USITC publication 3630, August 2003,

p. 4-5, and previous issues.

69 USTR, “NAFTA Commission Announces New Transparency Measures,” press release, Oct. 7,

2003, found at http://ustr.gov, retrieved July 12, 2005.

70 See NAFTA Secretariat, “Statement of the Free Trade Commission on Non-disputing Party

Participation,” found at http://www.ustr.gov, retrieved July 13, 2005.

71 See NAFTA Secretariat, “Statement of the Free Trade Commission on Notices of Intent to Submit a

Claim to Arbitration,” found at http://www.ustr.gov, retrieved July 13, 2005.

72 USTR “NAFTA Free Trade Commission Statement on Open Hearings,” news release, Oct. 7,

2003, found at http://www.ustr.gov, retrieved July 13, 2005. The NAFTA ministers released the

following statement Oct. 7, 2003 at the conclusion of their Free Trade Commission meeting. “Having

reviewed the operation of arbitration proceedings conducted under Chapter Eleven of the North

American Free Trade Agreement, the United States affirms that it will consent, and will request the consent

of disputing investors and, as applicable, tribunals, that hearings in Chapter Eleven disputes to which it is

a party be open to the public, except to ensure the protection of confidential information, including

business confidential information. The United States recommends that tribunals determine the

appropriate logistical arrangements for open hearings in consultation with disputing parties. These

arrangements may include, for example, use of closed-circuit television systems, Internet webcasting, or

other forms of access.”
4-16

In 2004, for the first time, a tribunal accepted written submissions from a nondisputing

party under Chapter 11 proceedings in a case brought by an investor against the

United States of America. In 2004, Mexico agreed to support open hearings for

Chapter 11 proceedings as well. Trade ministers agreed that Chapter 11 proceedings

should be equal to the openness of Chapter 20 dispute proceedings73 and asked

officials to develop rules to govern such open hearing proceedings. Trade ministers of

the NAFTA partners also agreed to release the negotiating texts of Chapter11, that is,

the successive drafts that culminated in the present Chapter 11 text.74

Chapter 19 Dispute Panel Reviews

Chapter 19 of NAFTA establishes a mechanism that provides for review by a

binational panel of final determinations made by a national investigating authority in

antidumping and countervailing duty cases. A panel may be established at the request

of an involved NAFTA country.

Three binational panels and one extraordinary challenge committee were formed in

2004. The NAFTA Secretariat listed 27 binational panels active at the end of 2004, as

well as the extraordinary challenge committee (table 4-5). Two of the new panels

challenged U.S. agency determinations concerning products from Canada, and one

challenged a U.S. agency determination on a product from Mexico. The extraordinary

challenge committee was requested by the U.S. Government concerning softwood

lumber from Canada.

73 Chapter 20 establishes dispute settlement provisions applicable to all disputes regarding the

interpretation or application of the NAFTA, seeking foremost to avoid or resolve disputes through

consultation. Failing resolution of a dispute through multiple stages of consultations, a five-member

arbitral panel may be established. See NAFTA Secretariat, “Overview of the Dispute Settlement

Provisions of the North American Free Trade Agreement.”

74USTR, “NAFTA Chapter 11 Trilateral Negotiating Draft Texts,” found at http://ustr.gov, retrieved

July 12, 2005.
Table 4-5

NAFTA Chapter 19 binational panels, active reviews in 2004

Country Case National agencies’ final determination1 Product descriptionCanada

No active chapter 19 cases.

Mexico

MEX-USA-2000-1904-02 SECOFI Final Antidumping Duty Determination Bovine carcasses and half carc

originating in the United Sta

MEX-USA-2003-1904-01 SE Final Countervailing Duty Determination Imports of sodium hydroxide (c

in the United States

MEX-USA-2003-1904-02 SE Final Countervailing Duty Determination Fresh Red Delicious and Golden 

originating in the United Stat

United States

USA-CDA-2000-1904-09 USITC Final Results of the Five-Year Reviews of the Countervailing

Duty and Antidumping Duty Orders

Magnesium from Canada

USA-CDA-2000-1904-11 USITC Final Results of the Five-Year Reviews of the Countervailing

Duty and Antidumping Duty Orders Carbon steel products from Ca

USA-CDA-2002-1904-02 USDOC Final Determination of Sales at Less Than Fair Value Certain softwood lumber produUSA-CDA-2002-1904-03 USDOC Final Affirmative Countervailing Duty Determination and

Final Negative Critical Circumstances Determination

Certain softwood lumber produ

USA-CDA-2002-1904-07 USITC Final Injury Determination Certain softwood lumber produUSA-CDA-2002-1904-09 USITC Final Injury Determination Carbon and certain alloy steel USA-CDA-2003-1904-02

USDOC Final Results of Countervailing Duty New Shipper Review

Alloy magnesium from Canada

USA-CDA-2003-1904-05 USDOC Final Affirmative Countervailing Duty Determinations Certain Durum wheat and Hard 

from Canada

USA-CDA-2003-1904-06 USITC Final Injury Determination Hard Red Spring wheat from CUSA-CDA-2004-1904-01

USDOC Final Results of Countervailing Duty Administrative Reviews Pure magnesium and alloy mag

USA-CDA-2004-1904-02

USDOC Final Results of the Antidumping Duty Administrative Review

Carbon and certain alloy steel 

USA-CDA-2005-1904-01 USDOC Final Results of Countervailing Duty Administrative Review

and Rescission of Certain Company-Specific Reviews

Certain softwood lumber produ

USA-CDA-2005-1904-03 USITC Implementation of the new Determination under Section

129(a)(4) of the Uruguay Round Agreements Act Certain softwood lumber produ

USA-MEX-1998-1904-02 USDOC Final Results of the 6th Antidumping Duty Administrative

Review

Gray Portland cement and cem

Mexico

See footnote at end of table.

4-17
Table 4-5—Continued

NAFTA chapter 19 binational panels, active reviews in 2004

Country Case National agencies’ final determination1 Product descriptionUnited States—Continued.

USA-MEX-2000-1904-03 USDOC Final Results of the 8th Antidumping Duty Administrative

Review

Gray Portland cement and cem

Mexico

USA-MEX-2000-1904-05 USDOC Final Results of the Full Sunset Review of the Antidumping

Duty Order

Gray Portland cement and cem

Mexico

USA-MEX-2000-1904-10 USITC Final Results of the Five-Year Review of the Antidumping Duty

Order Gray Portland cement and cem

USA-MEX-2001-1904-03 USDOC Final Results of the Full Sunset Review of the Antidumping

Duty Order

Oil Country tubular Goods from 

USA-MEX-2001-1904-04 USDOC Final Results of the 9th Antidumping Duty Administrative

Review

Gray Portland cement and cem

Mexico

USA-MEX-2001-1904-05 USDOC Final Results of the 4th Antidumping Duty Administrative

Review and Determination Not To Revoke

Oil country tubular goods from 

USA-MEX-2001-1904-06 USITC Final Results of the Five Year Review of the Antidumping Duty

Order

Oil country tubular goods from 

USA-MEX-2002-1904-01

USITC Dismissal of a Request to Institute a Section 751(b) Investigation Gray Portland cement and cem

Mexico

USA-MEX-2002-1904-05 USDOC Final Results of the 10th Antidumping Duty Administrative

Review

Gray Portland cement and cem

Mexico

USA-MEX-2003-1904-01 USDOC Final Results of the 11th Antidumping Duty Administrative

Review

Gray Portland cement and cem

Mexico

USA-MEX-2003-1904-03 USDOC Final Results of the 12th Antidumping Duty Administrative

Review

Gray Portland cement and cem

Mexico

USA-MEX-2004-1904-03 USDOC Final Results of the 13th Antidumping Duty Administrative

Review

Gray Portland cement and cem

Mexico

NAFTA Chapter 19 Extraordinary Challenge Committee, active proceedings

ECC-2004-1904-01USA Extraordinary Challenge Committee (ECC) Proceeding relating to

USA-CDA-2002-1904-07 Panel Review

Softwood Lumber from Canada

1 In Canada, final dumping and subsidy determinations are made by Revenue Canada–Customs and Excise, and injury determinations are made by the Canadian Inte

Mexico, all determinations are made by the Secretaria de Economia (SE) (formerly SECOFI, the Secretaria de Comercio y Fomento Industrial). In the United States, dumping 

made by the U.S. Department of Commerce (USDOC), and injury determinations are made by USITC.Source: NAFTA Secretariat, found at http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=11, retrieved Feb. 25, 2005.

4-18
5-1

CHAPTER 5

U.S. Relations With Major Trading

Partners

This chapter reviews bilateral trade relations and selected trade issues with seven

major U.S. trading partner regions during 2004: the European Union (EU), Canada,

Mexico, China, Japan, Taiwan, and Korea. Appendix tables A-16 through A-36

provide detailed information on U.S. trade with selected partners.

European Union

The United States and the EU share the largest two-way (exports plus imports) trade

relationship in the world. In 2004, U.S. merchandise trade with the EU-15 totaled

$422.2 billion, an 11.0 percent increase over 2003. U.S. exports of goods to the EU

increased to $152.0 billion in 2004, up 10.0 percent from 2003. U.S. imports of goods

from the EU increased by 11.6 percent in 2004 to $270.2 billion, resulting in a $118.3

billion trade deficit with the EU in 2004. Leading U.S. exports to the EU during the year

included aircraft and aircraft parts, certain medicaments, and parts of automated

data processing machines. Leading U.S. imports from the EU included passenger cars,

certain medicaments, petroleum derivatives, and nucleic acids and their salts. U.S.-EU

merchandise trade data are shown in appendix tables A-16 through A-18.

During 2004, the United States and the EU made progress on two important bilateral

trade issues. First, President Bush signed the American Jobs Creation Act of 2004,1 a

new law that brings the United States into conformity with a WTO ruling on U.S. special

tax treatment of foreign sales corporations(FSCs). The EU had challenged the previous

U.S. law. Second, talks during 2004 resulted in a January 2005 bilateral agreement

on the terms for the negotiation of a permanent settlement regarding subsidies to the

aircraft sector. Both of these issues are discussed below. Other issues that were on the

U.S.-EU trade agenda included the WTO’s examination of the EU’s de facto

moratorium on approvals of agricultural biotechnology products, the EU ban on meat

treated with growth-promoting hormones and related U.S. sanctions, food-related

geographical indications, non-uniform customs administration in the EU, regulatory

cooperation, and ongoing consultations with stakeholders to identify concrete ways to

1 Public Law 108-357.
5-2

enhance transatlantic economic ties. In addition, on May 1, 2004, the U.S.-EU trading

relationship expanded with the enlargement of the EU to include 10 central European

and Mediterranean countries.2 The United States supports this achievement.3

However, negotiations began in 2004 regarding compensation for trade obstacles

that were introduced by the accession of the 10 new member states.4

Foreign Sales Corporations

Background5

On July 1, 1998, the EU challenged in the WTO the first of two successive U.S. tax

regimes concerning the FSC provisions of U.S. tax law. On November 17, 2000, the

EU challenged the replacement regime, the FSC Repeal and Extraterritorial Income

Exclusion Act of 2000 (ETI Act).6 In both cases, the WTO dispute settlement panel and

Appellate Body found that the regimes constituted prohibited export subsidies and

were inconsistent with U.S. WTO obligations. In May 2003, the WTO Dispute

Settlement Body (DSB) authorized the EU to impose up to 100 percent ad valorem

duties on imports of certain goods from the United States to a maximum amount of

$4.043 billion per year.7 In December 2003, the EU Council of Foreign Affairs

Ministers adopted a regulation that outlined a plan to gradually impose

countermeasures on certain U.S. products, calling for the imposition of tariffs of

5 percent on U.S. products on March 1, 2004, with the tariff rate rising by 1 percentage

point per month thereafter until a 17 percent tariff rate is reached on March 1, 2005.8

Developments during 2004

On March 1, 2004, the EU imposed tariffs of 5 percent on more than 1,600 U.S.

products, including certain precious stones and metals, articles of jewelry, fruits,

vegetables, sugar, wood products, paper and paperboard, textiles, apparel,

footwear, articles of leather, glassware, articles of iron and steel, electrical and

non-electrical machinery, and toys and sports equipment.9 The EU continued to raise

the tariff rate by 1 percentage point each month through the end of 2004; as of

December 1, 2004, the tariff rate was 14 percent.

2 The 10 new EU member states are Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania,

Malta, Poland, the Slovak Republic, and Slovenia.

3 The White House, “Statement by the President on EU Enlargement,” press release, May 3, 2004.

4 USTR, 2005 Trade Policy Agenda and 2004 Annual Report, Mar. 1, 2005, p. 180.

5 For more information on the background of the FSC dispute, see USITC, The Year in Trade; OTAP,

2003, USITC publication 3700, pp. 5-2 to 5-4; USITC, The Year in Trade: OTAP, 2002, USITC publication

3630, pp. 5-2 to 5-4; USITC, The Year in Trade: OTAP, 2001, USITC publication 3510, pp. 4-10 to 4-11;

and USITC, The Year in Trade; OTAP, 2000, USITC publication 3428, pp. 4-12 to 4-13.

6 Public Law 106-519.

7 WTO, News, “Dispute Settlement Body, 7 May 2003, EU Granted Permission to Apply US $4

Billion Sanctions against US in Foreign Sales Corporation Case but Delays Application,” May 7, 2003,

found at http://www.wto.org, retrieved May 9, 2003.

8 “Council Regulation (EC) No. 2193/2003 of 8 December 2003 Establishing Additional Customs

Duties on Imports of Certain Products Originating in the United States of America,” OJ No. L 328 (Dec.

17, 2003).

9 Ibid.
5-3

On October 14, Congress passed the “American Jobs Creation Act of 2004,” which

repealed the FSC/ETI tax regime, and President Bush signed it into law on October 22,

2004.10 Soon after, the EU announced that it would lift its countermeasures against

U.S. products (following EU Council approval) on January 1, 2005, the same date that

the repeal of the exclusion for extraterritorial income was to enter into effect.11

However, the EU also announced that it would request the WTO to examine WTO

compliance of the new legislation.12

On November 5, 2004, the EU requested WTO consultations with the United States.13

At issue are transition and grandfathering provisions in the new U.S. law. According to

the EU, the “transition provisions will allow U.S. exporters to continue to benefit from

the [ETI Act] (a) in the years 2005 and 2006 with respect to all export transactions and

(b) for an indefinite period with respect to certain binding contracts.”14 The WTO could

rule on the current case later in 2005. In the meantime, on January 31, 2005, the EU

Council adopted a regulation suspending the additional duties that the EU had applied

to U.S. goods since March 2003, retroactive to January 1, 2005.15 However, the

regulation stipulates that 14 percent ad valorem duties be reimposed on January 1,

2006, or 60 days after a DSB ruling (whichever date is later) that the American Jobs

Creation Act is found WTO incompatible.

Aircraft Sector

Background

Government support for European aircraft manufacturer Airbus has been a

longstanding U.S. concern. According to the U.S. Government, the EU member state

governments of France, Germany, Spain, and the United Kingdom have provided

subsidies to their respective Airbus member companies to aid in the development,

10 Public Law 108-357.

11 European Commission (EC), “Foreign Sales Corporations (FSC): EU Welcomes US Repeal of

Illegal Export Subsidies–EU to Lift Sanctions and Ask for Check on WTO Compatibility,” press release

IP/04/1289, Oct. 25, 2004.

12 Ibid.

13 WTO, “United States—Tax Treatment for ‘Foreign Sales Corporations,’ Second Recourse by the

European Communities to Article 21.5 of the DSU, Request for Consultations,” WT/DS108/27, Nov. 10,

2004.

14 Ibid. Consultations were held on Jan. 11, 2005, and on Feb. 17, 2005 the DSB established a panel

to examine U.S. compliance. See, WTO, “United States—Tax Treatment for ‘Foreign Sales

Corporations,’ Second Recourse by the European Communities to Article 21.5 of the DSU, Request for

Establishment of a Panel,” WT/DS108/29, Jan. 14, 2005; and WTO, 2005 News Items, “Dispute

Settlement Body 17 February 2005,” found at http://www.wto.org, retrieved Mar. 2, 2005.

15 “Council Regulation (EC) No 171/2005 of 31 January 2005 Amending and Suspending the

Application of Regulation (EC) No. 2193/2003 Establishing Additional Customs Duties on Imports of

Certain Products Originating in the United States of America,” OJ No. L 28 (Feb. 2, 2005).
5-4

production, and marketing of large commercial aircraft since the 1970s.16 Following

two separate dispute settlement cases initiated by the United States under the 1980

GATT Subsidies Code,17 the United States reached a bilateral agreement with the EU in

1992—the U.S.-EU Agreement on Large Civil Aircraft.18 This agreement placed limits

on government subsidies affecting large civil aircraft19 manufactured by Airbus and

Boeing, and included a ban on future production support, a 33 percent cap on

development support, strict conditions on repayment terms, and a ceiling on indirect

support.20 According to USTR, the 1992 agreement was intended to lead to a

“progressive reduction” in Airbus subsidies.21

Airbus SAS represents a partnership of the European Aeronautic Defence and Space

Company (EADS), with an 80 percent equity share, and BAE Systems of the United

Kingdom, with a 20 percent equity share. Airbus and Boeing are the leading global

producers of large commercial aircraft in the world. According to EADS, Airbus world

market share of annual deliveries rose from 15 percent in 1990 to 52 percent in

2003.22 In 2004, Airbus delivered more planes and received more orders than

Boeing for the second consecutive year.23

Developments during 2004

U.S. and EU officials met several times in 2004 to discuss aircraft subsidies. With the

global market share held by Airbus having grown to approximately that of Boeing,

USTR Zoellick indicated that Airbus subsidies designed “to support an infant industry”

are no longer justified and it is time to establish a “level playing field.”24 According to

USTR:

16 USTR, 2005 National Trade Estimate Report on Foreign Trade Barriers (NTE), p. 151 and U.S.

Department of State telegram, “Demarche to EU member states on large commercial aircraft subsidies,”

message reference No. 193990, prepared by the U.S. Department of State, Washington, D.C., Sept. 9,

2004.

17 The 1980 Agreement on Subsidies and Countervailing Measures or Subsidies Code was a

plurilateral agreement that applied only to those signatories accepting its additional disciplines. These

disciplines were extended under the 1995 WTO Agreement on Subsidies and Countervailing Measures

to all WTO members.

18One case, with respect to a German exchange rate guarantee program, resulted in a GATT panel

ruling favorable to the United States. The second case, with respect to overall subsidies to Airbus, was

suspended as bilateral talks made progress.

19 Aircraft with more than 100 seats.

20 USTR, “U.S. and EC Sign Trade Agreement on Commercial Aircraft,” press release 92-44,

July 17, 1992; and USTR, “Fact Sheet: Airbus Agreement,” July 17, 1992.

21 USTR, “U.S. Files WTO Case against EU over Unfair Airbus Subsidies,” press release, Oct. 6,

2004.

22 EADS, To New Levels, Business and Legal Description 2003, found at http://www.eads.com,

retrieved Dec. 28, 2004.

23 USTR, “No New Subsidies: U.S. Acts to Stop New Airbus Subsidies, Including ‘Launch Aid’

Loans,” Trade Facts, Oct. 6, 2004; Boeing, “Boeing Finishes 2004 Strong, Sees Rise in Commercial

Airplane Orders,” press release, Jan. 6, 2005; and EADS, “2004: Another Landmark Year for Airbus,”

press release, Jan. 12, 2005.

24 USTR, “U.S. Files WTO Case against EU over Unfair Airbus Subsidies,” press release, Oct. 6,

2004.
5-5

Every major Airbus aircraft model was financed...with EU government

subsidies taking the form of “launch aid” [aid for aircraft design and

development]–financing with no or low rates of interest, and repayment tied

to sales of the aircraft. If the sales of a particular model are less than expected,

Airbus does not have to repay the remainder of the financing. EU

governments have forgiven Airbus debt; provided equity infusions; provided

dedicated infrastructure support; and provided substantial amounts of

research and development funds for civil aircraft projects.25

The EU has argued that Boeing benefits from indirect government subsidies, mainly in

the form of research and development funds from NASA, the Department of Defense,

the National Institute of Standards and Technology (Department of Commerce), and

other U.S. Government agencies. The EU also claims that Boeing benefits from export

subsidies under the ETI Act, which was ruled WTO incompatible, and subsidies in the

form of tax reductions and exemptions and infrastructure support associated with the

development and production of Boeing’s latest aircraft model, the 787 Dreamliner

(formerly designated 7E7).26

Following several U.S. efforts in 2004 to resolve the issue, on October 6, the United

States filed a dispute settlement case with the WTO. The United States claimed that EU

and member state subsidies to Airbus are inconsistent with their obligations under the

WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement) and

the General Agreement on Tariffs and Trade 1994 (GATT 1994).27 In announcing the

WTO case, USTR said that the 1992 Agreement on Large Civil Aircraft “has outlived its

usefulness” and announced U.S. withdrawal from the agreement.28

Hours later on October 6, the EU announced the initiation of a WTO dispute settlement

case against the United States.29 The EU claimed that the United States provides

subsidies to the U.S. aircraft industry and that such subsidies are inconsistent with the

SCM Agreement and GATT 1994.30 The EU also rejected U.S. termination of the 1992

Agreement on Large Civil Aircraft.31

25 Ibid.

26 EC, “US-Boeing: EU Takes US to the WTO Over Subsidies Granted to Boeing,” press release

IP/04/1191, Oct. 6, 2004; and EC, “EU-US Agreement on Large Civil Aircraft 1992: Key Facts and

Figures,” Memo/04/232, Oct. 6, 2004.

27 WTO, “European Communities and Certain Member States–Measures Affecting Trade in Large

Civil Aircraft, Request for Consultations by the United States,” WT/DS316/1, Oct. 12, 2004.

28 USTR, “U.S. Files WTO Case against EU over Unfair Airbus Subsidies,” press release, Oct. 6,

2004.

29 EC, “US-Boeing: EU Takes US to the WTO over Subsidies Granted to Boeing,” press release

IP/04/1191, Oct. 6, 2004.

30 WTO, “United States—Measures Affecting Trade in Large Civil Aircraft, Request for

Consultations by the European Communities,” WT/DS317/1, Oct. 12, 2004.

31 EC, “US-Boeing: EU Rejects US Unilateral Abrogation of the 92 Aircraft Agreement,” press

release IP/04/1198, Oct. 8, 2004.
5-6

Following discussions between USTR Zoellick and incoming EU Trade Commissioner

Mandelson, on January 11, 2005, both sides reached an agreement on the terms for

the negotiation of a new aircraft agreement. The terms called for the negotiation of a

comprehensive agreement within three months to end subsidies to producers of large

civil aircraft. The parties agreed that the new accord would (1) be bilateral and

concern Airbus on the EU side and Boeing on the U.S. side, (2) be based on the

definition of subsidies in the SCM, (3) include provisions on transparency and dispute

settlement, (4) include the terms and conditions for withdrawal from the agreement,

and (5) provide for a review of the operation of the agreement in one year from its

entry into force. Both sides agreed that following conclusion of an agreement, they

would work to broaden the agreement to include other countries. The parties also

agreed that during the negotiations, they would not request establishment of WTO

panels relating to the pending disputes and would not commit new government

support for aircraft development or production.32

Canada

Two-way merchandise trade between the United States and Canada was valued at

over $1 billion a day during 2004—the largest bilateral trade flow in the world

between two countries.33 Following two years of decline during 2001-02, total U.S.

trade with Canada increased during 2003-04. U.S. exports of goods to Canada

totaled $163.2 billion in 2004, a $14.4 billion increase (9.7 percent) from 2003, while

U.S. imports of goods totaled $255.7 billion in 2004, an increase of nearly $32 billion

(14.1 percent) from 2003. The leading U.S. exports to Canada in 2004 were major

motor vehicle products, including parts and accessories of bodies for motor vehicles,

passenger motor vehicles, parts and accessories for motor vehicles, and piston

engines. The leading U.S. imports from Canada during 2004 included passenger

motor vehicles, natural gas, and crude petroleum. The U.S. trade deficit with Canada

was $92.5 billion, a 22.9 percent increase from 2003. U.S.-Canadian merchandise

trade data are shown in appendix tables A-19 through A-21.34

32 USTR, “Statement of U.S. Trade Representative Robert B. Zoellick Regarding U.S.-EU Agreement

on Terms for Negotiation to End Subsidies for Large Civil Aircraft,” press release, Jan. 11, 2005; and EC,

“EU/US Agreement on Terms for Negotiation to End Subsidies for Large Civil Aircraft,” MEMO/05/4,

Jan. 11, 2005. The two sides did not reach an agreement by the Apr. 11, 2005 deadline. In a statement

issued on Apr. 8, USTR warned that should the EU provide additional subsidies to Airbus, the United States

would proceed with the WTO dispute settlement case. On May 31, 2005, the United States requested that

establishment of a WTO dispute settlement panel “in light of the EU’s unwillingness to halt new subsidies

for large civil aircraft.” USTR, “United States takes Next Step in Airbus WTO Litigation,” May 30, 2005.

On the same day, the EU requested establishment of a panel to examine subsidies granted to Boeing. EC,

“EU Resumes WTO Case Against Boeing,” IP/05/638, May 31, 2005.

33 USTR, 2005 Trade Policy Agenda and 2004 Annual Report, Mar. 1, 2005.

34 U.S. trade with NAFTA partners is shown in table 4-2.
5-7

U.S.-Canadian commercial relations are governed in large part by NAFTA, which

provided duty-free status for substantially all goods originating in the United States

and Canada.35 The major trade-related issue in 2004 between the United States and

Canada continued to involve softwood lumber and related trade disputes, following

the expiration of the softwood lumber agreement on April 1, 2001, a bilateral

agreement between the two countries governing trade in that sector.

Agriculture

Canada is the foremost market for U.S. food and agricultural exports, reaching nearly

$10 billion in 2004. Agricultural matters continued to figure prominently in

U.S.-Canada trade relations during 2004. The U.S.-Canada Consultative Committee,

a body created in 1998 to strengthen bilateral agricultural relations and provide a

forum for discussion and cooperation on related matters, met twice during 2004 to

discuss a variety of agricultural issues. Differences over a number of these issues have

been brought to the dispute settlement system at the WTO, of which both countries are

members.

WTO Dispute over Softwood Lumber Products from Canada

During 2004, the United States was involved in a number of softwood lumber disputes

before binational panels under NAFTA Chapter 19 (“NAFTA panels”), and before the

WTO. The disputes concerned antidumping and countervailing duty orders imposed

on Canadian softwood lumber imports in May 2002, after the U.S. Department of

Commerce (“Commerce”) found that such imports were both subsidized by the

Government of Canada and sold in the United States at less than fair value,36 and the

Commission issued an affirmative threat of material injury determination.37

Commerce found a country-wide countervailable subsidy of 18.79 percent,38 and

35 NAFTA evolved from a bilateral free trade agreement, the United States-Canada Free Trade

Agreement (CFTA). CFTA entered into force on Jan. 1, 1989, and allowed for successive duty reductions

over a 10-year period. CFTA was subsumed into NAFTA when the latter entered into force on Jan. 1, 1994.

The timetable for duty reductions, as well as most of the terms of the CFTA, were incorporated into NAFTA.

The bilateral phaseout of duties under NAFTA was completed on Jan. 1, 1998. Duty-free status exists for

most bilaterally traded goods, except for certain supply-managed products in Canada and dairy, sugar,

peanuts, and cotton in the United States. NAFTA developments are described in chapter 4 of this report.

36 Notice of Amended Final Determination of Sales at Less than Fair Value and Antidumping Duty

Order: Certain Softwood Lumber Products from Canada, Case No. A-122-838, 67 FR 36068 (May 22,

2002); Notice of Amended Final Affirmative Countervailing Duty Determination and Notice of

Countervailing Duty Order: Certain Softwood Lumber Products from Canada, Case No. C-122-839, 67

FR 36070 (May 22, 2002).

37 USITC, Softwood Lumber from Canada, Inv. Nos. 701-TA-414 and 731-TA-928 (Final), USITC

publication No. 3509, May 2002.

38 Notice of Countervailing Duty Order, 67 FR 36076.
5-8

margins of dumping ranging from 2.18 percent to 12.44 percent.39 Canadian

softwood lumber producers, joined by the Canadian federal and provincial

governments, challenged Commerce’s subsidization and dumping determinations

and the Commission’s injury determination before separate NAFTA panels, and the

Canadian government challenged each of the determinations before WTO dispute

settlement panels.

As of the end of 2003, the NAFTA panels had issued decisions affirming the

determinations in part, but also remanding them with instructions for the agencies to

address certain legal and factual issues.40 Commerce issued its first remand

determination for the antidumping NAFTA panel review in October 2003,41 and the

Commission issued its first remand determination in the injury NAFTA panel review in

December 2003.42

The WTO panel reviewing Commerce’s affirmative countervailing duty determination

issued its report in August 2003, finding the determination inconsistent in part with U.S.

obligations under the WTO Agreement.43 The United States appealed the panel’s

findings to the WTO Appellate Body on October 21, 2003. The case before the WTO

Appellate Body in the countervailing duty dispute, and those before the WTO panels in

the other two softwood lumber disputes, were pending at year’s end. Major

developments relating to these six disputes during 2004 are summarized below.

2004 NAFTA Panel Decisions

Antidumping determination

The NAFTA panel reviewing Commerce’s antidumping determination issued its second

decision on March 5, 2004, affirming Commerce’s remand determination in part, but

remanding on three discrete issues concerning the calculation of antidumping margins

for certain Canadian softwood lumber producers.44 Commerce issued its second

39 Notice of Antidumping Duty Order, 67, FR 36069.

40 See Decision of the Panel, In the Matter of Certain Softwood Lumber Products from Canada: Final

Affirmative Antidumping Determination, Sec. File No. USA-CDA-2002-1904-02 (July 17, 2003);

Decision of the Panel, In the Matter of Certain Softwood Lumber from Canada: Final Affirmative

Countervailing Duty Determination, Sec. File No. USA-CDA-2002-1904-03 (Aug. 13, 2003); Decision of

the Panel, In the Matter of Certain Softwood Lumber Products: Final Affirmative Threat of Material Injury

Determination, Sec. File No. USA-CDA-2002-1904-07 (Sep. 5, 2003).

41 See Remand Redetermination, In the Matter of Certain Softwood Lumber Products from Canada:

Final Affirmative Antidumping Determination, Sec. File No. USA-CDA-2002-1904-02 (Oct. 16, 2003).

42 See USITC, Softwood Lumber from Canada, Inv. Nos. 701-TA-414 and 731-TA-928 (Remand),

USITC publication No. 3658, Dec. 2003.

43 See Report of the Panel, United States—Final Countervailing Duty Determination with Respect to

Certain Softwood Lumber from Canada, WT/DS267/R, Aug. 29, 2003.

44 See Decision of the Panel Respecting Remand Redetermination, In the Matter of Certain Softwood

Lumber Products from Canada: Final Affirmative Antidumping Determination, Sec. File No.

USA-CDA-2002-1904-02 (Mar. 5, 2004), found at http://www.nafta-sec-alena.org.
5-9

remand determination on April 21, 2004, which calculated lower antidumping

margins for the three companies.45 Parties to the panel review challenged

Commerce’s second remand determination before the NAFTA panel on various

grounds. The NAFTA panel held a hearing on the matter on September 28, 2004.

Countervailing duty determination

The NAFTA panel remanded Commerce’s original countervailing duty determination

on August 13, 2003 to address the panel’s concerns with the methodology for

calculating the benefit conferred on Canadian softwood lumber producers through

provincial Crown stumpage programs.46

Commerce issued a remand determination on January 12, 2004, that replaced the

cross-border benchmark of the original determination with a new benchmark,

reducing the country-wide subsidy rate to 13.23 percent.47 After Commerce’s new

methodology was challenged, the NAFTA panel issued a second decision on June 7,

2004 affirming the new methodology, but remanding for specific adjustments.48

In its second remand determination of July 30, 2004, Commerce further reduced the

country-wide subsidy rate to 7.82 percent.49 After this remand determination was

challenged, the panel issued a third decision on December 1, 2004, remanding for

Commerce to address its concerns regarding adjustments to the methodology.50

Commerce issued a third remand determination on January 24, 2005 that reduced

the country-wide subsidy rate to 1.88 percent.51 As of April 1, 2005, the panel had not

issued its decision on the challenges to the latest remand determination.

45 See Second Remand Redetermination, In the Matter of Certain Softwood Lumber Products from

Canada: Final Affirmative Antidumping Determination, Sec. File No. USA-CDA-2002-1904-02 (Apr. 21,

2004), found at http://ia.ita.doc.gov. 46 See Decision of the Panel, In the Matter of Certain Softwood Lumber from Canada: Final

Affirmative Countervailing Duty Determination, Sec. File No. USA-CDA-2002-1904-03 (Aug. 13, 2003).

In Canada, Crown corporations are operated by the federal government and provincial governments as

a means to pursue economic and social policy objectives. In theory, they are operated at an arm’s length

commercial basis from the government. Stumpage programs are the primary means by which federal or

provincial governments grant timber harvesting rights from forest land held by a Crown corporation to

individuals or companies, essentially granting a license to cut timber but one that also includes obligations

such as road maintenance or reforestation requirements as well as the right to cut timber. The United

States has long argued that provincial stumpage programs involving Crown corporation forest land

constitutes a countervailable subsidy that provides a financial benefit to the harvesters of Crown timber.

47 See Remand Determination, In the Matter of Certain Softwood Lumber from Canada: Final

Affirmative Countervailing Duty Determination, Sec. File No. USA-CDA-2002-1904-03 (Jan. 12, 2004),

found at http://ia.ita.doc.gov. 48 See Decision of the Panel, In the Matter of Certain Softwood Lumber from Canada: Final

Affirmative Countervailing Duty Determination, Sec. File No. USA-CDA-2002-1904-03 (June 7, 2004).

49 See Second Remand Determination, In the Matter of Certain Softwood Lumber from Canada:

Final Affirmative Countervailing Duty Determination, Sec. File No. USA-CDA-2002-1904-03 (July 30,

2004), found at http://ia.ita.doc.gov. 50 See Decision of the Panel on Second Remand, In the Matter of Certain Softwood Lumber from

Canada: Final Affirmative Countervailing Duty Determination, Sec. File No. USA-CDA-2002-1904-03

(Dec. 1, 2004).

51 See Third Remand Determination, In the Matter of Certain Softwood Lumber from Canada: Final

Affirmative Countervailing Duty Determination, Sec. File No. USA-CDA-2002-1904-03 (Jan. 24, 2005),

found at http://ia.ita.doc.gov.
5-10

Threat of material injury determination

The NAFTA panel’s first decision of September 5, 2003 affirmed the Commission’s

original affirmative threat of material injury determination in part, and remanded in

part.52 The Commission issued an affirmative threat of material injury determination

on remand on December 15, 2003.53 After this remand determination was appealed,

the panel on April 29, 2004, affirmed the Commission’s determination in part, but

remanded a number of issues regarding the Commission’s threat findings.54

The Commission issued an affirmative threat of material injury determination on

second remand on June 10, 2004.55 On August 31, 2004, in issuing its third decision,

the panel “preclude[d] the Commission on remand from undertaking yet another

analysis of the substantive issues” and remanded the case to the Commission “for the

Commission to make a determination consistent with the decision of this Panel that the

evidence on the record does not support a finding of threat of material injury.”56

Recognizing that the “Panel’s Decision and Order can only be seen as a reversal of the

Commission’s affirmative determination of threat of material injury,” the Commission

majority issued “a determination, consistent with the Panel’s decision, that the U.S.

softwood lumber industry is not threatened with material injury by reason of subject

imports from Canada.”57 The Commission noted that “because the Panel has

precluded the Commission from engaging in any analysis of substantive issues, the

Commission has not reached and cannot reach any determination regarding whether

there is substantial evidence to support this negative determination.”58 The NAFTA

panel upheld the Commission’s third remand determination and issued a notice of final

panel action on October 25, 2004.59 The Chapter 19 panel’s material injury decision

became the subject of an extraordinary challenge requested by the United States on

November 24, 2004, under Annex 1904.13 of NAFTA.60

52 See Decision of the Panel, In the Matter of Certain Softwood Lumber Products: Final Affirmative

Threat of Material Injury Determination, Sec. File No. USA-CDA-2002-1904-07 (Sep. 5, 2003).

53 See Softwood Lumber from Canada, Inv. Nos. 701-TA-414 and 731-TA-928 (Remand), USITC

publication No. 3658, Dec. 2003.

54 See Remand Decision of the Panel, In the Matter of Certain Softwood Lumber Products: Final

Affirmative Threat of Material Injury Determination, Sec. File No. USA-CDA-2002-1904-07 (released on

Apr. 29, 2004).

55 See Softwood Lumber from Canada, Inv. Nos. 701-TA-414 and 731-TA-928 (Remand) (Second)

(June 10, 2004).

56 See Second [sic] Remand Decision of the Panel, In the Matter of Certain Softwood Lumber

Products: Final Affirmative Threat of Material Injury Determination, Sec. File No.

USA-CDA-2002-1904-07 (Aug. 31, 2004) at 4 and 6.

57 See Views of the Commission in Response to the Panel Decision and Order of August 31, 2004, at

13 (Sept. 10, 2004) Chairman Koplan dissented from the majority determination and reaffirmed his prior

affirmative threat determination. See Dissenting Views of Chairman Koplan.

58 USITC, “ITC Files Response to Softwood Lumber Binational Panel Decision with NAFTA

Secretariat,” USITC news release 04-100, Sept. 10, 2004.

59 See Status Report of Panel Proceedings, NAFTA Secretariat website, found at

http://www.nafta-sec-alena.org.

60 See Active Extraordinary Challenge Committee Proceedings, NAFTA Secretariat website, found

at http://www.nafta-sec-alena.org.
5-11

WTO Dispute over Canadian Wheat Board and Treatment of Imported

Grain

The Canadian Wheat Board (CWB) operates as a state trading enterprise with

government-sanctioned authorities that the United States believes restricts

competition.61 In 2003, the United States requested a WTO dispute settlement panel to

examine Canadian measures relating to exports of wheat and the treatment of

imported grain as handled by the CWB, including claims related to access for U.S.

exports of grain to Canada’s rail transportation system.62

In April 2004, the WTO panel issued its report, which found that:

S The United States failed to establish its claim that Canada had breached its

obligations under GATT Article XVII:1 with respect to the CWB; and

S The United States failed to establish its claim that section 87 of the Canada

Grain Act was inconsistent with GATT Article III:4 and Article 2 of the

Trade-Related Investment Measures Agreement.63

The panel also found that:

S Section 57(c) of the Canada Grain Act and Section 56(1) of the Canada

Grain Regulations were inconsistent with GATT Article III:4 and were not

justified under GATT Article XX(d); and

S Sections 150(1) and (2) of the Canada Transportation Act were inconsistent

with GATT Article III:4.64

In June 2004, the United States notified the WTO that it would appeal certain issues of

law and legal interpretation in the panel report. The WTO Appellate Body issued its

report in August 2004, which upheld the panel report conclusions.65 The Appellate

Body report and panel report, as modified, were adopted in September 2004. In

November 2004, the United States and Canada agreed on roughly a 10-month time

period in which to bring into compliance those regulations found by the panel to be

inconsistent with Canada’s GATT obligations, that is, by August 1, 2005.

61 U.S. Department of State telegram, “2004 National Trade Estimate Report—Canada,” message

reference No. 3698, prepared by the U.S. Embassy, Ottawa, Dec. 24, 2003.

62 For further detail, see USITC, The Year in Trade 2001: OTAP, 2001, USITC publication 3510, May

2002, pp. 4-14 to 4-15.

63 WTO, “WT/DS276—Canada—Measures Relating to Exports of Wheat and Treatment of

Imported Grain Complaint by the United States,” Update of WTO Dispute Settlement Cases,

WT/DS/OV/22, Oct. 14, 2004.

64 Ibid.

65 Ibid.
5-12

WTO Dispute over U.S. Determination Concerning Hard Red Spring Wheat

The U.S. Department of Commerce determined in 2003 that Canadian exports of hard

red spring wheat to the United States were both subsidized and dumped. In October

2003, Commerce imposed antidumping duties of 8.87 percent and countervailing

duties of 5.29 percent.66 Following a request from the Canadian government, the

United States and Canada held consultations in May 2004 on Canadian concerns

about the consistency of the U.S. measures with U.S. obligations under the GATT 1994,

the Anti-Dumping Agreement, and the Subsidies and Countervailing Measures

Agreement, but the consultations failed to resolve the matter.67 In June 2004, Canada

requested a WTO dispute settlement panel to examine certain aspects concerning the

U.S. investigation and determination regarding hard red spring wheat from

Canada.68 The United States responded that Canada’s claims lacked merit and that

the United States was not in a position at present to accept the establishment of a panel.

The DSB agreed to take up this matter of establishment of a panel at its next meeting.69

In July 2004, Canada requested the DSB to withdraw the request for the establishment

of a panel regarding the U.S. investigation and determination regarding hard red

spring wheat from Canada, but noted that Canada reserved its right to include the

request on the agenda of a future DSB meeting as a second request for

consideration.70

Intellectual Property Rights

Canada’s 1997 Copyright Act includes two provisions that require reciprocal

treatment rather than national treatment.71 The first provision concerns a neighboring

rights royalty, paid by broadcasters and distributed to artists. Canada’s copyright law

guarantees payment of the royalty to artists from countries that have signed the 1961

Rome Convention. U.S. artists do not receive these royalty payments under Canada’s

reciprocal treatment provision because the United States is not a signatory to the Rome

Convention. Canadian authorities have not ruled on whether the United States should

receive royalty payments based on national treatment status.

66 68 FR 52741, Sept. 5, 2003, 68 FR 60641, Oct. 23, 2003 and USTR, 2005 Trade Policy Agenda

and 2004 Annual Report, Mar. 1, 2005.

67 WTO, DSB, “United States—Determination of the International Trade Commission in Hard Red

Spring Wheat from Canada—Request for the Establishment of a Panel by Canada,” WT/DS310/2,

June 11, 2004.

68 Ibid.

69 WTO, DSB, “Minutes of Meeting—Held in the Centre William Rappard on 22 June 2004,”

WT/DSB/M/171, July 9, 2004.

70 WTO, DSB, “Removal of Panel Request from the Agenda,” WTO News: 2004 News

Items—Dispute Settlement Body 20 July 2004, found at http://www.wto.org, retrieved June 21, 2005.

71 U.S. Department of State telegram, “2004 National Trade Estimate Report–Canada,” message

reference No. 3698, prepared by the U.S. Embassy, Ottawa, Dec. 24, 2003; U.S. Department of State,

“Canada—Investment Climate Statement Appendix, 2004,” prepared by U.S. Embassy, Ottawa,

message reference No. 1749, July 8, 2004.
5-13

The second provision concerns a levy on blank tapes and diskettes, the so-called

private copy levy, paid by manufacturers and importers of blank recording media and

distributed to artists from countries that provide an equivalent payment to Canadian

artists. The levy covers analog and digital tapes and diskettes, and since December

2003, MP3 players as well. Canada’s copyright law requires reciprocal treatment,

rather than national treatment, for distribution of the private copy levy. Although the

United States imposes a levy on digital audio recording media, distributing the

proceeds to Canadian as well as other artists, it does not impose a levy on analog tape.

As a consequence, the United States considers Canada’s reciprocity requirement for

both the neighboring rights royalty and the blank tape levy as denying national

treatment to U.S. copyright holders.72

In March 2004, a Canadian court ruled that downloading music from the Internet does

not constitute copyright infringement.73 The Federal Court of Appeals denied a motion

to compel Internet service providers to disclose the identity of clients who were alleged

to be sharing copyrighted music files, using so-called peer-to-peer software. The

recording industry is appealing the court’s decision, although Canadian ratification of

the WIPO Copyright Treaty—under consideration by the Parliament—would remedy

this problem.74

North American Initiative

During its first 10 years in operation, trade among NAFTA partners doubled in volume

and in value. However, the U.S. Department of State has expressed the view that

further growth is likely to be constrained unless both strained border infrastructure and

regulatory differences that impede the entry of new products onto the market and limit

consumer choice are addressed.75

In September 2004, the Canadian External Advisory Committee on Smart Regulation

released its final report, which highlighted that North American technical standards

and regulatory regimes should be a priority for Canadian regulators.76 The committee

recommended that Canada develop an agenda for North American regulatory

cooperation, whereby regulatory requirements in Canada should differ from North

72 Ibid.

73 USTR, 2005 Trade Policy Agenda and 2004 Annual Report, Mar. 1, 2005.

74USTR, “Canada,” 2005 National Trade Estimate Report on Foreign Trade Barriers, March 2005,

p. 57.

75 U.S. Department of State, “Smart Regulation in Canada: Implications for Canada and the North

American Initiative,” prepared by U.S. Embassy, Ottawa, message reference No. 418, Feb. 10, 2005.

76 U.S. Department of State telegram, “Summit Agenda on Common Prosperity: Thoughts on Next

Steps on the Regulatory Front,” Dec. 21, 2004, message reference No. 3431, prepared by U.S. Embassy,

Ottawa.
5-14

American or international norms only where unique Canadian national priorities,

conditions, or constitutional issues arise. The committee proposed that groups of

interested parties (“stakeholders”) from multiple perspectives be formed to identify

regulatory differences in five priority areas: (1) manufacturing/product approval; (2)

biotechnology/life sciences; (3) enabling economic development for the indigenous

peoples of North America; (4) environmental assessment processes; and (5) oil and

gas exploration and development.77

At the U.S.-Canada bilateral summit on November 30, 2004, the U.S. President and

Canadian Prime Minister agreed to an agenda that committed both sides to joint

approaches to “partnerships, consensus standards, and smarter regulations that

result in greater efficiency and competitiveness” designed to enhance the health and

safety of citizens in both countries.78

Mexico

Mexico maintained its position in 2004 as the third-largest U.S. trading partner after

the European Union and Canada, and before China. U.S. exports to Mexico were

valued at $93.0 billion in 2004, a 11.9 percent increase from $83.1 billion in 2003 and

an 8.1 percent increase from $86.1 billion in 2002. U.S. imports from Mexico in 2004

were valued at $155.0 billion, a 12.9 percent increase from $137.2 billion in 2003 and

a 15.5 percent increase from $134.1 billion in 2002. The U.S. merchandise trade deficit

with Mexico amounted to $61.9 billion in 2004, widening from $54.1 billion in 2003

and $48.0 billion in 2002. U.S. exports to Mexico increased in most major product

categories. Machinery and transportation equipment continued to be the largest

groups in this trade flow. U.S. imports from Mexico were up in all product categories,

including the largest ones: manufactures, chemicals, and mineral fuels. Higher

petroleum prices accounted for some 20 percent of the increase in the value of U.S.

imports from Mexico in 2004. U.S.-Mexican merchandise trade data are shown in

appendix tables A-22 through A-24. For the most part, the rise in imports from Mexico

in 2004 reflects the expansion of the U.S. economy and growing use of assembly

services in Mexico by U.S. manufacturers.

During 2004, a long-running bilateral dispute regarding telecommunications

practices in Mexico was resolved by the conclusion of a WTO dispute settlement

proceeding. However, other issues remained open, including issues relating to

bilateral trade in sweeteners,79 a U.S. dispute settlement complaint in the WTO about

77 Ibid.

78 Ibid.

79 For background, see USITC, The Year in Trade: OTAP, 2002, USITC publication 3630, Aug.

2003, pp. 5-15 to 5-17.
5-15

Mexican dumping duties on U.S. beef and long-grain white rice,80 Mexican

complaints regarding delay in U.S. implementation of the cross-border trucking

provisions under NAFTA,81 and Mexico’s concern about agricultural imports from the

United States.82

Nonetheless, some developments occurred during the year in the unresolved areas

noted above. In June, the United States requested the WTO to establish a dispute

settlement panel to review the legality of the 20 percent tax Mexico had imposed in

2002 on domestic producers of soft drinks and other beverages that use sweeteners

other than cane sugar, including U.S. high-fructose corn syrup (HFCS).83 The United

States contends that the beverage tax violates Mexico’s WTO obligations because it

discriminates against U.S. products such as HFCS that compete directly with the use of

sugar in producing beverages.84 Mexico was also retaliating against the limits the

United States imposes on imports of cane sugar from Mexico. The tax, which the United

States claims to be inconsistent with Mexico’s international trade obligations, has

sharply restricted U.S. exports of HFCS to Mexico.85

With regard to the cross-border trucking dispute, on June 7, 2004 the U.S. Supreme

Court overturned a January 2003 ruling of the U.S. Ninth Circuit Court of Appeals that

had determined that opening highways to Mexican trucks without conducting

air-quality impact studies violated U.S. environmental law. The U.S. Supreme Court

upheld the authority of Congress and the U.S. administration to implement those

NAFTA provisions that required the United States, effective January 1, 2000, to give

full access to Mexican trucks throughout the United States.86

Telecommunications Services

In June 2004, the United States and Mexico reached an agreement regarding

telecommunications practices in Mexico.87 This accord was preceded by a WTO panel

ruling, released on April 2, 2004, that agreed with the United States’ view that

80 See, USITC, The Year in Trade, OTAP, 2003, USITC publication 3700, July 2004, p. 5-15.

81 For background, see USITC, The Year in Trade: OTAP, 2002, USITC publication 3630, August

2003, pp. 5-17 to 5-19.

82 For background, see USITC, The Year in Trade: OTAP, 2002, USITC publication 3630, August

2003, pp. 5-11 to 5-15, and The Year in Trade: OTAP, 2003, USITC publication 3700, July 2004, pp. 5-13

to 5-14.

83USTR, “United States Requests WTO Panel Against Mexico Over Beverage Taxes,” press release,

June 22, 2004. For background on the issue, see USITC, The Year in Trade: OTAP, 2002, USITC

publication 3630, Aug. 2003, pp. 5-15 to 5-17.

84 Ibid. The Government of Mexico believes that the United States should significantly increase sugar

quotas allocated to Mexico. The HFCS dispute and the issue of Mexico’s duty-free access to the U.S. sugar

market are both part of the bilateral issue on sweeteners. (For more detail, see prior OTAP reports.)

85 Ibid.

86 Paul Blustein, “High Court Opens U.S. Roads to Mexican Trucks,” Washington Post, June 8, 2004,

p. E1.

87 USTR, “U.S. and Mexico Reach Agreement to Resolve Telecom Dispute,” press release, 04-46,

June 1, 2004.
5-16

Mexico’s current regime for international telecommunications was inconsistent with

that country’s WTO obligations.88 The WTO DSB adopted the panel ruling during its

June 1, 2004 meeting.89

USTR estimates the annual volume of telecommunications traffic between the two

countries at over six billion minutes, representing services worth more than $2

billion.90 Market barriers in Mexico’s telecommunications sector had been a

long-term source of concern for the United States. The dispute centered on Mexican

regulations that governed the operations of Teléfonos de Mexico (Telmex), Mexico’s

largest telecommunications company and its former state-owned telecommunications

monopoly. Interconnection fees imposed by Telmex on companies that had to connect

with Telmex to complete long distance calls from the United States to Mexico were

specifically at issue. As a result of these interconnection fees, wholesale

telecommunications rates for U.S.-Mexico telephone calls had been significantly

above the rates charged in countries with competitive telecommunications markets.91

The previous USITC report in this series summarized the major U.S. arguments in this

case.92

The conclusion of a telecommunications agreement and the terms of this accord were

announced by the United States and Mexico at the June 1, 2004 DSB meeting. Mexico

agreed to remove several regulations that restricted foreign operators’ access to its

telecommunications market and that allowed Telmex to charge such operators

excessively high interconnection rates for the use of its infrastructure.93 Mexico also

agreed to provide Mexican-based carriers the right to resale services94 for

international long distance calls by July 2005 in a manner consistent with Mexican

law.95 On the other hand, in accordance with the panel’s support of one of Mexico’s

arguments, Mexico will continue to prevent foreign firms that do not have a

commercial presence in Mexico from using leased lines.96

88 See USTR, “U.S. Wins Telecommunications Case Against Mexico in WTO,” press release, 04-17,

Mar. 12, 2004; and USITC, The Year in Trade, 2003, OTAP,USITC publication 3700, July 2004, pp. 5-16

to 5-17.

89 U.S. Department of State telegram, “Report of the DSB Meeting of June 1, 2004,” message

reference number 01612, prepared by U.S. Mission, Geneva, June 7, 2004.

90 USTR, “U.S. and Mexico Reach Agreement to Resolve Telecom Dispute,” press release 04-46,

June 1, 2004.

91 USTR, 2004 Trade Policy Agenda and 2003 Annual Report of the President of the United States

on the Trade Agreements Program, Mar. 2004, pp. 122-23.

92 See USTR, “U.S. Wins Telecommunications Case against Mexico in WTO,” press release, 04-17,

Mar. 12, 2004, and USITC, The Year in Trade, 2003: OTAP,USITC publication 3700, July 2004, pp. 5-16

to 5-17.

93 U.S. Department of State telegram, “Report of the DSB Meeting of June 1, 2004,” message

reference number 01612, prepared by U.S. Mission, Geneva, June 7, 2004.

94 Under a resale practice known as “bypass,” foreign telecommunications operators use leased

lines in Mexico to complete calls originating in the United States, bypassing the local exchange operator,

and avoiding fees for the use of the network.

95 USTR, “U.S. and Mexico Reach Agreement to Resolve Telecom Dispute,” press release 04-46,

June 1, 2004.

96 U.S. Department of State telegram, “Report of the DSB Meeting of June 1, 2004,” message

reference number 01612, prepared by U.S. Mission, Geneva, June 7, 2004.
5-17

NAFTA’s Effects on Mexico’s Agricultural Imports from

the United States

Mexico’s 2003 National Agreement on Agriculture (NAA), an agreement between

the Government of Mexico and Mexican farmers’ organizations, stated that the

Mexican government and Mexican agricultural producer groups would conduct a

joint evaluation of the NAFTA agricultural chapter and its effect on Mexico’s rural

sector.97 The Government of Mexico released this evaluation on April 4, 2004.98 The

report stated that a direct causal relationship between NAFTA and Mexico’s

agricultural problems was difficult to establish because the sector’s structural problems

existed well before NAFTA was implemented.99 The study described Mexican

agricultural production units as ranging from small-scale subsistence farms to large,

sophisticated operations. However, the majority of farmers still fall into the subsistence

or semi-commercialized category and suffer from a chronic shortage of credit and

investment.100

The report emphasized the gains Mexican agriculture made in the last 10 years in

producing fruit and legumes resulting from improved access to North American

markets. However, it found that Mexico’s dependence on foreign food in general also

increased during this period, and that “[o]n the whole, most rural workers and small

producers are poorer at present than they were at the beginning of the 1990s.”101 The

report further concluded that the opening of trade by NAFTA, as well as the

appreciation of the peso, which encouraged imports and curtailed exports, reduced

Mexican farm sector employment while the rest of the economy was unable to absorb

the newly unemployed agricultural workers.102 Moreover, the report said that the

Mexican government extended insufficient compensation to those farmers who were

adversely affected by the opening of trade. This was especially true, the report said,

when comparing the level of support provided to farmers in Mexico with that granted

by some foreign governments.103

97 For background on the NAA, see also USITC, The Year in Trade: OTAP, 2003, USITC publication

3700, July 2004, pp. 5-14.

98 Jose Romero y Alicia Puyana, “Evaluación Integral de los Impactos e Instrumentación del Capítulo

Agropecuario del TLCAN” (“Full Evaluation of the Impacts and Implementation of the Agriculture Chapter

of NAFTA.”) Their report was officially released in Spanish by the Government of Mexico on Apr. 4, 2004

(TLCAN-Documento.pdf, retrieved on Jan. 18, 2005). No complete English translation exists, but it was

summarized and analyzed in English by USDA, FAS, “Summary of Mexican Government Study on the

Effects of NAFTA on Mexican Agriculture,” Gain Report MX4070, June 7, 2004, found at

http://www.fas.usda.gov, retrieved Aug. 11, 2004.

99 See also Secretaria de Agricultura (SAGARPA), and Secretaria de Economia, (SE), Joint Press

Release, No. 089/04, Apr. 5, 2004, found at http://www.sagarpa.gob.mx, retrieved on Jan. 14, 2005.

100 Ibid.

101 USDA, FAS, “Summary of Mexican Government Study on the Effects of NAFTA on Mexican

Agriculture,” Gain Reports MX4070.

102 Ibid.

103 Ibid.
5-18

During 2004, Mexican farmers continued to challenge their government for not

urging trading partners to renegotiate certain NAFTA provisions, especially those

regarding imports of corn and dry, edible beans.104 In November, Javier Usabiaga,

Mexico’s Secretary of Agriculture, pointed out that NAFTA does not have a provision

that would allow renegotiating its terms.105

Imports of Genetically Modified Corn

In Mexico, the use of transgenic (genetically modified) corn (maize) for food is legal,

but planting such corn is not allowed. On November 8, 2004, the North American

Commission for Environmental Cooperation (CEC) released the final draft of a report

titled “Maize and Biodiversity; The Effects of Transgenic Maize in Mexico; Key Findings

and Recommendations.”106 The CEC report addressed problems associated with the

discovery of transgenic corn growing in Mexico alongside other strains of the grain.

The report found no current risk from imported transgenic corn, but warned of

potential future threats to Mexican crops, saying that:

The Mexican government should strengthen the moratorium on commercial

planting of transgenic maize by minimizing the import of living transgenic

maize from countries that grow transgenic maize commercially. For example,

some countries have addressed this problem by milling transgenic grain at the

point of entry.107

The report recommended that the corn Mexico imports from the United States and

Canada, if not certified to be free of genetic modification, be directed to mills for

processing before it becomes available for any use other than consumption,108 such as

planting and growing. It further recommended that farmers be educated to avoid

planting seeds that could contain genetically modified seed, and that corn imports be

labeled for their transgenic content.109

The report was not officially endorsed by the NAFTA Council, or the Governments of

the United States, Canada, or Mexico even though it was released by CEC.110

Nonetheless, the report was accepted by the Mexican government since it addressed

concerns expressed by Mexican farmers and environmental groups that transgenic

corn would contaminate local strains. SEMARNAT, Mexico’s Environmental

Department said that it already had implemented some measures recommended by

the CEC, including a program to distribute pamphlets on transgenic corn to rural

areas.111

104 La Jornada, Sept. 1, 2004.

105 El Financiero, Nov. 29, 2004.

106 Article 13 of the North American Agreement on Environmental Cooperation stipulates that the

CEC Secretariat may prepare a report on any matter within the scope of the CEC annual program.

107 CEC Secretariat, “Maize and Biodiversity, The Effects of Transgenic Maize in Mexico; Key

Findings and Recommendations,” Nov. 8, 2004,“ found at http://www.cec.org, retrieved Dec. 15, 2004.

108 Mexico imports corn mostly to be used as animal feed.

109 CEC Secretariat, “Maize and Biodiversity.”

110 Ibid.

111 El Financiero, Sep. 11, 2004. and El Universal, Sep. 11, 2004.
5-19

However, USTR, jointly with the Environmental Protection Agency, responded

immediately with strong criticism of the report:

This report is fundamentally flawed and unscientific; key recommendations

are not based on sound science, and are contradicted by the report’s own

scientific findings. The authors acknowledge that no economic analysis of

their recommendations was conducted, and that many of these

recommendations are based solely on socio-cultural considerations.112

The USTR further emphasized:

Implementing many of the report’s recommendations would cause economic

harm to farmers and consumers in all NAFTA countries and restrict

international trade. For example, requiring U.S. corn exports to Mexico to be

milled at the border would increase the cost of U.S. corn significantly,

negatively affecting Mexico’s livestock producers and consumers. Milling

corn before transport also raises quality concerns and increases shipping

costs, exacerbating the problem. Perhaps most troubling, the report itself

acknowledges that this and other recommendations would do nothing to

preserve maize biodiversity.113

China

China is the third largest two-way trading partner of the United States behind Canada

and Mexico. In 2004, U.S.-China two-way merchandise trade totaled $228.8 billion,

an increase of 28.3 percent compared with 2003, and nearly double the growth rate

of total U.S. trade. U.S. exports of goods to China in 2004 were valued at $32.6

billion, a 22.1 percent increase from 2003. U.S. imports of goods from China were

valued at $196.2 billion in 2004, an increase of 29.4 percent from 2003. The United

States recorded a $163.6 billion merchandise trade deficit with China in 2004,

compared to a deficit of $124.9 billion in 2003. Leading U.S. exports to China during

2004 included soybeans, integrated circuits, aircraft, cotton, machines and

mechanical appliances having individual function, and wheat. Leading U.S. imports

from China included computer input and output units, parts, and accessories; portable

automatic data processing machines; transmission apparatus; footwear; and video

recording devices. U.S.-China merchandise trade data are shown in appendix tables

A-25 through A-27.

112 USTR, “U. S. Calls NAFTA Environmental Report Flawed, Unscientific,” press release, Nov. 8,

2004.

113 Ibid.
5-20

China’s compliance with the terms of its accession to the WTO remained a major focus

of the U.S.-China trade relationship in 2004, which is discussed below. Other issues

during the year included actions addressing U.S. imports of Chinese textiles and

apparel under the special textile safeguard mechanism114 and investigations under

the China-specific safeguard mechanism (section 421 of the Trade Act of 1974).115

Also, U.S. Government officials continued to urge China to move away from its policy

to peg its currency to the U.S. dollar, to a policy supporting a flexible, market-driven

exchange rate.116

U.S. Assessment of China’s WTO Compliance in 2004

China became a member of the WTO in 2001. In its WTO accession agreement, China

made commitments covering a large number of areas, including import and export

regulations, internal policies affecting trade (such as taxation and subsidies),

investment, agriculture, intellectual property rights (IPR), services, the legal trade

framework, and trading rights and distribution services. Implementation of these

commitments is scheduled to be substantially completed by December 11, 2007.

USTR is required to report annually to Congress on China’s compliance with its WTO

commitments. In its report covering 2004, USTR reported that “U.S. stakeholders were

significantly more satisfied with China’s WTO performance in 2004 than in the

previous two years. . . . [however,] serious problems remain, and new problems

regularly emerge.”117 In particular, USTR cited China’s slow implementation of its

WTO commitments “in many areas of U.S. competitive advantage, particularly where

innovation or technology play a key role,”118 such as government procurement of

software and telecommunications standards. USTR cited four areas that continue to

generate significant concerns: intellectual property rights, services, agriculture, and

industrial policies.119 These are discussed below.

114 For more information, see the section on the U.S. textile and apparel trade program in chapter 2

of this report, and USTR, 2005 Trade Policy Agenda and 2004 Annual Report, March 2004.

115 For more information, see the section on safeguard actions in chapter 2 of this report, and USTR,

2005 Trade Policy Agenda and 2004 Annual Report, March 2004.

116 Economic Report of the President, February 2005, p. 184. During 2004, U.S. and Chinese

officials met under the technical cooperation program to discuss exchange rate issues, including potential

impediments to greater exchange rate flexibility.

117 USTR, 2004 Report to Congress on China’s WTO Compliance, Dec. 11, 2004, p. 4.

118 Ibid, p. 5.

119 USTR, 2005 National Trade Estimate Report on Foreign Trade Barriers, p. 72.
5-21

Intellectual Property Rights

Although some problems remain, USTR reports that China’s framework of laws,

regulations, and implementing rules governing IPR is “largely satisfactory.”120

However, “enforcement of these measures remained ineffective in 2004.”121 USTR

indicated that ineffective enforcement results from “lack of coordination among

Chinese government ministries and agencies, local protectionism and corruption, high

thresholds for criminal prosecution, lack of training, and weak punishments.”122 U.S.

rights holders reported that IPR infringement in China remained “rampant” in 2004

and may even have worsened.123 During the year, IPR infringements continued to

affect a wide range of products, including films, music, publishing, software,

pharmaceuticals, chemicals, information technology, consumer goods, electrical

equipment, automotive parts, and industrial products.124

In April 2004, a meeting of the U.S.-China Joint Commission on Commerce and Trade

(JCCT), a high-level government consultative mechanism established to address trade

issues, resulted in a commitment by China to improve IPR enforcement. China

presented an action plan, under which it committed to (1) reduce IPR infringement

levels, (2) increase penalties for IPR violations, (3) crack down on violators by

conducting nation-wide enforcement actions and increasing customs enforcement

actions, (4) improve protection of electronic data, (5) educate the public about the

importance of IPR protection, and (6) establish an IPR working group under the JCCT to

address IPR issues and monitor implementation of the commitments made in the action

plan.125

During 2004, China initiated anti-counterfeiting and anti-piracy campaigns and

increased border measures to limit exports and imports of infringing products and

improve enforcement of new customs regulations. China addressed issues related to

criminal enforcement, such as the lowering of criminal liability thresholds, through the

issuance of a judicial interpretation by the Supreme People’s Court in December

2004.126 On April 29, 2005, USTR announced the results of an out-of-cycle review of

China’s IPR policies under the 2005 annual special 301 provisions of U.S. trade law.127

That review found that “piracy and counterfeiting rates remain at extremely high levels

due to China’s inadequate and non-deterrent enforcement system.”128 As a result,

USTR elevated China to the priority watch list.

120 USTR, 2004 Report to Congress on China’s WTO Compliance, p. 59.

121 Ibid.

122 Ibid., p. 62.

123 Ibid., p. 63.

124 Ibid.

125 USTR, “Trade Facts: The U.S.-China JCCT: Outcomes on Major U.S. Trade Concerns,” Apr. 21,

2004.

126 USTR, 2005 National Trade Estimate Report on Foreign Trade Barriers, pp. 96-99.

127 Developments with respect to special 301 are described in chapter 2 of this report.

128 USTR, 2005 Special 301 Report, April 2005.
5-22

Services

According to USTR, China “continued to keep pace nominally” with its market access

commitments for services under its WTO accession agreement during 2004.129 No

significant concerns have emerged with respect to China’s implementation of

commitments made in the professional services, tourism and travel-related services,

educational services, and environmental services sectors.130 In the maritime and

aviation services sectors, China went beyond its WTO commitments and signed

bilateral agreements with the United States in December 2003131 and July 2004,132

respectively.133

However, problems remain in other service sectors because of China’s “opaque

regulatory process [and] overly burdensome licensing and operating

requirements.”134 According to USTR, China “maintained or erected terms of entry

that were so high or cumbersome” as to restrict market access by foreign suppliers.135

For example, although capital requirements have been reduced, they remain

“excessive” in the insurance, banking, telecommunications, and non-bank motor

vehicle financing sectors.136 Also problematic are discriminatory treatment of branch

approvals in the insurance sector, unnecessary delays in branch establishment in the

legal services sector,137 and new market access restrictions adversely affecting the

express delivery and construction services sectors.138

Agriculture

In the agriculture sector, USTR reported that in 2004 “China’s compliance efforts . . .

continued to produce mixed results.”139 China continued to reduce tariffs on

agricultural products as required under its WTO accession agreement.140 Also during

the year, China issued final safety certificates for biotech soybeans, corn, canola, and

cotton.141 However, agricultural trade with China “remains among the least

transparent and predictable of the world’s major markets.”142 For example,

“capricious practices of Chinese customs and quarantine officials” obstruct

agricultural exports from the United States.143 Although some problematic sanitary

129 USTR, 2004 Report to Congress on China’s WTO Compliance, p. 68.

130 Ibid., p. 80.

131 U.S. Department of Transportation, “Transportation Secretary Mineta Signs Far-reaching

Maritime Agreement with China,” press release MARAD 32-03, Dec. 8, 2003.

132 U.S. Department of Transportation, “United States, China Sign Agreement on Expanded Air

Services,” press release DOT 104-04, July 24, 2004.

133 Ibid., p. 79.

134 Ibid., p. 6.

135 Ibid., p. 68.

136 Ibid.

137 Ibid., pp. 72 and 74.

138 Ibid., p. 68.

139 Ibid., p. 50.

140 Ibid., p. 51.

141 Ibid., p. 53.

142 Ibid., p. 6.

143 Ibid.
5-23

and phytosanitary (SPS) standards have been removed,144 lack of transparency in the

application of SPS regulations, which often lack a scientific basis, frustrates trade.145

Similarly, progress was made in the administration of tariff rate quotas on bulk

agricultural commodities, but inadequate transparency remains an issue.146

Industrial Policies

USTR has cited certain Chinese industrial policies that appear aimed to protect less

competitive domestic industries and to promote the development of higher

value-added industry. Such policies, according to USTR, act to restrict foreign goods

and “extract technology and intellectual property from foreign rights-holders.”147 For

example, in March 2004, in the first dispute settlement case filed against China, the

United States claimed that China provides a discriminatory tax rebate policy for

semiconductors by allowing partial refunds of the 17 percent value-added tax (VAT)

on semiconductors produced in China or imported semiconductors designed in China,

whereas other semiconductor imports are subject to the full 17 percent VAT.148 In July,

the case was resolved when China agreed to eliminate the VAT rebate policy.149 Other

concerns cited by USTR included Chinese efforts to promote unique standards for

wireless encryption and third-generation wireless telephony, where important

progress was made in 2004, and potentially restrictive rules covering the government

procurement of software.150

Japan

U.S. exports of goods to Japan totaled $50.5 billion in 2004, a 3.3 percent increase

from $48.9 billion in 2003. U.S. imports of goods from Japan totaled $129.5 billion, a

9.3 percent increase from $118.5 billion in 2003. The U.S. merchandise trade deficit

with Japan totaled $79.0 billion in 2004, an increase from a deficit of $69.6 billion in

2003. The leading U.S. exports to Japan during 2004 were airplanes and other

aircraft, corn, parts of airplanes or helicopters, soybeans, and semiconductors. The

leading U.S. imports from Japan during 2004 were passenger motor vehicles; parts

and accessories for computers; still video cameras and other video recorders; and

parts and accessories for motor vehicles. U.S.-Japan merchandise trade data are

shown in appendix tables A-28 through A-30.

144 USTR, 2005 National Trade Estimate Report on Foreign Trade Barriers, p. 73.

145 Ibid., p. 51.

146 Ibid.

147 Ibid., p. 7.

148 USTR, “U.S. Files WTO Case against China over Discriminatory Taxes That Hurt U.S. Exports,”

press release, Mar. 18, 2004.

149USTR, “U.S. and China Resolve WTO Dispute Regarding China’s Tax on Semiconductors,” press

release, July 8, 2004.

150 Ibid., pp. 7 and 47.
5-24

The U.S.-Japan trade relationship during 2004 continued to focus on bilateral

discussions under the “U.S.-Japan Economic Partnership for Growth

(“Partnership”).”151 The main topics addressed in the discussions included

deregulation of the Japanese economy and Japan’s restrictions on beef imports.

Deregulation

During 2004, discussions continued between the United States and Japan regarding

deregulation under the Regulatory Reform and Competition Policy Initiative

(“Regulatory Reform Initiative”).152 Discussions focused on reforms in areas such as

telecommunications, information technologies, energy, pharmaceuticals, competition

policy, transparency and other government practices, legal system reform,

commercial law revision, and distribution.153

The “Third Report to Leaders” under the Regulatory Reform Initiative, released June 8,

2004, contained information on regulatory reforms and other measures taken by the

United States and Japan. In announcing the release of the report, USTR Robert Zoellick

noted the economic reforms Japan had taken, and urged Japan to maintain its

commitment to an aggressive reform agenda.154 USTR pointed to actions taken by the

Japanese government to reduce customs processing fees at all ports by 50 percent,

strengthen the protection of copyrights, ease the regulatory process for new

pharmaceuticals and other health-related products, and liberalize the energy

sector.155 Other cited examples of reform measures that Japan has undertaken

included adopting measures to promote electronic commerce, ensuring that U.S.

insurance companies have a voice in the privatization of Japan’s postal service, and

enhancing the transparency of financial regulation. The Japanese government also

submitted to its parliament amendments to the Antimonopoly Act.156

The United States submitted its annual deregulation reform recommendations to the

Government of Japan on October 14, 2004.157 The wide-ranging recommendations

focused on the key sectors and cross-cutting areas, including telecommunications,

information technology, pharmaceuticals, financial services, competition policy,

151 For background information on the Partnership, see USITC, The Year in Trade, OTAP, 2002,

publication No. 3630, pp. 5-20 through 5-21.

152 The Regulatory Reform Initiative was established in June 2001 as one element of the U.S.-Japan

Economic Partnership. The objective of the Initiative was to promote economic growth by focusing on

sectoral and cross-sectoral issues related to regulatory reform and competition policy. “Third Report to

the Leaders on the U.S.-Japan Regulatory Reform and Competition Policy Initiative,” June 8, 2004; and

USTR, “Third Report to the Leaders on the U.S.-Japan Regulatory Reform and Competition Policy

Initiative,” Fact Sheet, June 8, 2004.

153 Ibid.

154 USTR, “Regulatory Reform and Competition Policy Committee Releases Annual Report,” press

release 2004-52, June 8, 2004.

155 Ibid.

156 Ibid.

157 The recommendations provide a basis for the 2005 annual report to the Leaders of Japan and

the United States.
5-25

transparency, privatization, legal system reform, commercial law, and distribution

services. The recommendations, based on previous regulatory reforms including

specific measures that have substantially lowered customs processing fees at Japan’s

international airports for express delivery services, placed special focus on the

Japanese government’s efforts to privatize Japan Post, and targeted for deregulation

such service sectors as insurance, banking, and mail delivery.158

During the week of November 29, 2004, the United States and Japan held

consultations in the working groups established to cover issues on regulatory reforms

of medical devices and pharmaceuticals; energy; information technology; competition

policy, transparency, and legal services; and telecommunications. The working

groups for each of these areas are to submit recommendations to President Bush and

Prime Minister Koizumi during 2005.159

Beef

Throughout 2004, the United States urged Japan to lift its restrictions on imports of U.S.

beef. Japan and 30 other countries banned imports of U.S. beef following the

confirmation of a U.S. case of bovine spongiform encephalopathy (BSE), or mad cow

disease in the United States on December 23, 2003.160 On January 22, 2004, U.S.

officials met with Japanese officials regarding the reopening of Japan’s market for

U.S. beef and to report on new U.S. regulations related to the slaughter of cows.

On March 29, 2004, the United States proposed that a U.S.-Japan technical

consultation group on BSE be convened with the World Organization for Animal

Health (OIE), the international standard setting body for animal diseases. The United

States indicated at that time that Japan continued to insist that all animals be tested and

specific risk materials (SRMs) be removed as conditions for entry of U.S. beef products

into the Japanese market, but that international experts agreed that there was no

scientific basis for 100 percent testing.161On April 5, 2004, USDA Secretary Veneman

announced that negotiations regarding the resumption of U.S. beef exports to Japan

were at a deadlock as Japan continued to insist on 100 percent testing of all U.S. cattle.

However, press reports noted that the Government of Japan was being pressed by

Japanese restaurants and retailers to allow beef imports to resume because of a beef

shortage and growing consumer beef demand in Japan.162

158 USTR, “United States Calls on Japan to Bolster Regulatory Reform: Submits Far-Reaching

Recommendations,” press release, Oct. 14, 2004, and “Annual Reform Recommendations from the

United States to the Government of Japan under the U.S.-Japan Regulatory Reform and Competition

Policy Initiative,” Oct. 14, 2004.

159 “U.S. Insisting on ‘Level Playing Field’ in Privatization of Japan Postal Services,” BNA,

International Trade Daily, Dec. 13, 2004.

160 U.S. Embassy, Tokyo, “Bush Administration Works to Re-Open Markets to U.S. Beef,” press

release, found at http://tokyo.usembassy.gov/e/p/tp-20040128-13.html, retrieved Dec. 17, 2004.

161 USTR, “Statement by Agriculture Secretary Ann M. Veneman and U.S. Trade Representative

Robert B. Zoellick,” April 1, 2004, found at http://ustr.gov, retrieved Dec. 16, 1004.

162 Washington Trade Daily, “U.S. at Deadlock with Japan on Beef,” April 7, 2004.
5-26

During April 23-24, 2004, U.S. Government officials held consultations with the

Government of Japan regarding the resumption of beef trade. The two countries

agreed to form a joint technical group to address several key issues, including: the

definition of BSE and methods of testing, the definition of SRMs and methods for their

removal, appropriate surveillance, and appropriate feed ban implementation.163

Bilateral talks continued during May 18-19, 2004 when the United States–Japan BSE

Technical Working Group met to discuss the resumption of bilateral beef trade.

Officials from both countries discussed their BSE surveillance and control systems. In

addition, the officials visited a slaughter facility to observe firsthand the SRM removal

and testing procedures Japan had implemented.164

On July 1, 2004, the United States and Japan held a series of technical meetings aimed

at resuming bilateral beef trade. The issue received attention again on September 22,

2004, when Japan’s Prime Minister Koizumi and President Bush agreed on the need

for a quick resumption of bilateral beef trade.165 U.S. and Japanese officials met

again during October 21-23, 2004, to discuss the resumption of beef trade between

the two countries. Japanese officials explained the regulatory review process for

domestic measures. U.S. officials explained the measures that had been taken against

BSE and presented basic ideas for the resumption of two-way trade. Both countries

shared the view that under certain conditions and modalities, the countries would

resume two-way trade in beef and beef products, subject to their respective domestic

approval processes. Additional details were to be worked out by experts and

working-level officials of both countries.166

On October 23, 2004, Japan agreed to temporarily resume imports of U.S. beef from

cattle less than 21 months of age, following a 10-month suspension of all beef from the

United States. Bilateral trade is expected to resume in 2005 following the completion of

regulatory processes in both countries. Japan indicated that it would revise its domestic

regulations to alter its BSE cattle testing requirements and other procedures. A special

marketing program, the Beef Export Verification Program, is to be developed under

the USDA Agricultural Marketing Service to certify that exported products meet the

terms of the agreement. The system includes procedures for confirming the age of

cattle, and certification of the removal of risk materials from carcasses.167 A joint

review of the program is to be conducted in 2005, based in part on an independent

review by experts from OIE and other organizations.168

163 Embassy of the United States, “U.S., Japan To Begin Talks to Resume Trade in Beef,” press

release, May 12, 2004.

164 Embassy of the United States, Tokyo, Japan, “U.S., Japan Hold First Meetings in Resolve Beef

Issues,” press release, May 19, 2004.

165 Washington Trade Daily, Sept. 23, 2004, p. 4.

166 Embassy of the United States, Japan, “Joint Press Statement for the Resumption of Trade in Beef

and Beef Products,” Oct. 23, 2004.

167 U.S. Embassy, Tokyo, Japan, “U.S., Japan Agree to Temporary Resumption of Beef Trade,”

found at http://tokyo.esembassy.gov, retrieved Dec. 16, 2004.

168 Washington Trade Daily, “Johanns Blasts Japan on Beef Trade,” Jan. 25, 2005, p. 1.
5-27

Taiwan

In 2004, Taiwan was the eighth largest U.S. trading partner, with bilateral two-way

merchandise trade totaling more than $54.8 billion, representing an increase of 15.1

percent from $47.6 billion in 2003. U.S. exports of goods to Taiwan totaled $20.3 in

2004, an increase of 26.3 percent from $16.1 billion in 2003. U.S. imports of goods

from Taiwan totaled $34.5 billion in 2004, an increase of 9.4 percent from $31.5

billion in 2003. The United States recorded a $14.1 billion merchandise trade deficit

with Taiwan in 2004. Leading U.S. exports to Taiwan consisted of electronic integrated

circuits, machines and mechanical appliances having individual functions (mostly

semiconductor production machinery), aircraft, corn, and machine tools for dry

etching patterns on semiconductor materials. Leading U.S. imports from Taiwan

consisted of parts and accessories of computers, integrated circuits, portable

computers, and magnetic media. U.S.-Taiwan merchandise trade data are shown in

appendix tables A-31 through A-33.

Intellectual Property Rights

The United States maintained Taiwan on its special 301 priority watch list169 in May

2004 for the fourth year in a row, citing deficiencies in Taiwan’s copyright law,

continuing trade in counterfeit goods (especially pharmaceutical products), and

deficiencies in laws and enforcement aimed at preventing unfair commercial use of

pharmaceutical and agricultural chemical test data.170 Taiwan authorities, and

especially its enforcement authorities, were commended by the United States for

increasing the frequency and effectiveness of enforcement actions that have

significantly reduced the number of pirated optical media products for retail sale.171

In USTR’s 2004 report on special 301, the United States called on Taiwan to enact

changes in its relevant laws to protect pharmaceutical and agricultural chemical data

submitted to its Department of Health for certification purposes and to pass

amendments to strengthen its copyright law.172 USTR announced that it would conduct

an out-of-cycle special 301 review in the fall of 2004 to evaluate Taiwan’s progress in

achieving these objectives.173

169 Developments with respect to special 301are described in chapter 2 of this report.

170 USTR, 2004 Special 301 Report, May 3, 2004, p. 21; and USTR, 2005 National Trade Estimate

Report on Foreign Trade Barriers, Mar. 30, 2005, p. 598.

171 Ibid., p. 20.

172 Ibid., p. 21 and U.S. Department of State telegram, “Taiwan Special 301: AIT Submission,”

message reference No. 533, prepared by the American Institute in Taiwan (AIT), Taipei, Feb. 24, 2004.

173 USTR, 2004 Special 301 Report, May 3, 2004, p. 21.
5-28

The major action taken in 2004 in Taiwan to improve IPR protection occurred in August

when Taiwan’s legislature passed additional amendments to its copyright law. The

additional amendments included technological protection measures, heavier

penalties for copyright infringement, and authorization for Taiwan customs authorities

to seize IPR-infringing goods on its own authority as opposed to needing a complaint

from the copyright owner to enable it to proceed with a seizure.174 Other actions

included passage in March of amendments to the pharmaceutical law increasing

penalties for producing, distributing, or selling counterfeit products, and

institutionalization of the Integrated Enforcement Task Force (IETF). The IETF had been

an ad hoc force committed to combating retail optical disk piracy that was made

permanent in November.175 On January 18, 2005, Taiwan was moved from the

special 301 priority watch list to the special 301 watch list as a result of improvements in

IPR protection during 2004.176

Korea

U.S. two-way merchandise trade with Korea totaled more than $70.0 billion in 2004.

U.S. exports of goods to Korea totaled $25.0 billion in 2004, an increase of 11.0

percent from $22.5 billion in 2003. U.S. imports of goods from Korea totaled $45.1

billion in 2004, an increase of 22.0 percent from $$36.9 billion in 2003. The United

States recorded a $20.1 billion merchandise trade deficit with Korea in 2004. Leading

U.S. exports to Korea in 2004 included computer chips, aircraft, machines and

mechanical appliances having individual function (mostly semiconductor production

machinery), and corn (maize). Leading U.S. imports from Korea included transmission

apparatus incorporating reception apparatus (mostly cellular phones), automobiles,

and computer chips. U.S.-Korea merchandise trade data are shown in appendix

tables A-34 through A-36.

U.S.-Korean trade relations in 2004 reflected the continued relaxation of trade

frictions in recent years. The two countries meet regularly to discuss bilateral trade

issues.

174 USTR, 2005 National Trade Estimate Report on Foreign Trade Barriers, Mar. 30, 2005, p. 598;

U.S. Department of State telegram, “Taiwan Special 301: AIT Submission,” message reference No. 533,

prepared by AIT, Taipei, Feb. 24, 2004; and U.S. Department of State telegram, “Taiwan Special 301

OCR: AIT Views,” message reference No. 3690, prepared by AIT, Taipei, Nov. 18, 2004.

175 Ibid.

176 USTR, “U.S. Announces Results of IPR Out-of-Cycle Reviews for Poland and Taiwan,” press

release, Jan. 18, 2005.
5-29

Intellectual Property Rights

In January 2004, USTR re-elevated Korea to the special 301 priority watch list177 as a

result of an out-of-cycle review, citing insufficient progress in stemming the growth of

online music piracy and continued piracy of U.S. motion pictures in Korea.178

Background

USTR placed Korea on the special 301 priority watch list in 2000, citing a number of

long-standing IPR issues, concerns about enforcement, and recent amendments to IPR

legislation.179 Based on commitments made in trade meetings between the United

States and Korea in April 2002, Korea was downgraded to the watch list in 2002.180

In the 2003 Special 301 Report, USTR stated that the limited steps that Korea had taken

to fulfill its 2002 commitments fell short of what Korea had pledged to do and that new

and significant IPR issues had emerged.181 For these reasons, USTR decided to conduct

an out-of-cycle special 301 review in the fall of 2003. The decision to keep Korea on the

watch list or move it to the priority watch list was to be based on Korea’s taking action in

all of the following areas:

S Take all actions necessary to ensure that the Standing Inspection Team is

granted police powers at the earliest opportunity;

S Draft and submit legislation to the National Assembly that establishes the

exclusive right of transmission for sound recordings, including both the full

right of making them available and the full right of communication to the

public, and seek its enactment by the end of 2003;

S Provide additional, new data on the Korean government’s enforcement

efforts that are sufficient to more fully evaluate the full range of its

enforcement activities, including the imposition of deterrent penalties that are

sufficient to allow rights holders the opportunity to take action against

infringers who are not convicted;

S In addition, in order to resolve the film distribution issues, the Korean

government should draft and submit legislation to the National Assembly to

grant the Korea Media Review Board (KMRB) all authority necessary to stop

film piracy. This legislation and/or the implementing regulations must:

- clearly provide the KMRB the authority to reject false applications,

177 Developments with respect to special 301 are described in chapter 2 of this report.

178 USTR, “U.S. Elevates Korea to Priority Watch List Based on Continued Concerns Regarding Film

and Music Piracy,” press release, Jan. 8, 2004.

179 USTR, 2000 Special 301 Report, May 1, 2000, p. 17.

180 USTR, 2003 Trade Policy Agenda and 2002 Annual Report of the President of the United States

on the Trade Agreements Program, Mar. 3, 2003, p. 175.

181 USTR, 2003 Special 301 Report, May 1, 2003, p. 24.
5-30

- clearly provide the KMRB the authority to cancel existing ratings that were

approved on the basis of a false application,

- not place undue burdens on legitimate rights holders to prove their

rightful ownership, and

- fully and faithfully implement Korea’s agreement with respect to

interoperable mobile telephone standards.182

Developments during 2004

The results of the special 301 out-of-cycle review (OCR) were announced on January

8, 2004. Korea was elevated to the priority watch list because it had not taken action

on two of the highest priority issues included in the review: (1) legislation providing for

full rights of transmission for performers and producers of sound recordings; and (2)

legislation and implementing regulations granting the KMRB all authority to stop film

piracy.183

Sound recordings

According to USTR, Korea’s sophisticated digital infrastructure and inadequate legal

protection for IPR have led to high rates of Internet piracy for sound recordings of U.S.,

Korean, and other artists.184 U.S. Embassy reports have noted that Koreans have

become accustomed to free downloads of music from the Internet in circumstances

similar to those in the United States a few years ago when free file-sharing services

such as Napster were emerging.185 Korea’s copyright laws have been inadequate to

stop free downloads, leading the United States to call for their strengthening.186

On October 16, 2004, the Korean National Assembly passed amendments to the

Copyright Act that granted exclusive interactive transmission rights to performers and

sound recording producers, effective January 17, 2005. Under the new amendments,

only performers and phonogram (sound recording) producers themselves can

transmit their performances or phonograms through such means as posting copies on

websites for downloading on demand. Others who want to transmit phonograms over

the Internet must seek prior permission from the rights holder.187 These amendments

182 Ibid., p. 25 and USTR, “U.S. Elevates Korea to Priority Watch List Based on Continued Concerns

Regarding Film and Music Piracy,” press release, Jan. 8, 2004.

183 USTR, “U.S. Elevates Korea to Priority Watch List Based on Continued Concerns Regarding Film

and Music Piracy,” press release, Jan. 8, 2004.

184 USTR, 2005 National Trade Estimate Report on Foreign Trade Barriers, Mar. 30, 2005, p. 373.

185U.S. Department of State telegram, “IPR: Greater Aggression by Government and Courts Brings

Sound Recording Protection into the Public Eye,” message reference No. 931, prepared by U.S. Embassy,

Seoul, Feb. 2, 2005.

186 Ibid., p. 373.

187 Ibid., p. 374, and U.S. Department of State telegram, “IPR: Greater Aggression by Government

and Courts Brings Sound Recording Protection into the Public Eye,” message reference No. 931,

prepared by U.S. Embassy, Seoul, Feb. 25, 2005.
5-31

did not cover all of the transmission rights called for in the 2003 special 301 report.

Amendments to provide transmission rights for non-interactive transmissions, such as

webcasting, streaming, and digital broadcasting reportedly were being drafted in late

2004.188

Korea Media Review Board

Before a motion picture can be distributed in Korea, it must have a rating from the

KMRB. KMRB ratings were granted in recent years to entities that were not legally

authorized rights holders, thereby facilitating the distribution of pirated copies of

movies. Legislation was passed in late 2003 giving the KMRB authority to identify and

stop the fraudulent rating of motion pictures, with implementing regulations becoming

effective at the end of May 2004. The legislation left open the question as to whether

Korean law would allow the regulations to be applied retroactively to remove existing

fraudulent ratings. In October 2004, the Korean government said that a new system

was under consideration whereby legitimate rights holders could request the KMRB to

revoke ratings of titles that were fraudulently registered before the effective date of the

new regulations.189

Beef

In December 2003, Korea imposed a ban on imports of U.S. beef after BSE was found

in a cow in Washington State that had been imported from Canada. The United States

has pressed the Korean government to reopen beef trade, stressing that U.S. beef is

safe.190 The Korean government did not rescind the ban during 2004.191

188U.S. Department of State telegram, “November 2004 U.S.-Korea Trade Talks: Overview of Key

Outcomes,” message reference No. 6202, prepared by U.S. Embassy, Seoul, Dec. 8, 2004.

189USTR, 2005 National Trade Estimate Report on Foreign Trade Barriers, Mar. 30, 2005, p. 374;

U.S. Department of State telegram, “November 2004 U.S.-Korea Trade Talks: Overview of Key

Outcomes,” message reference No. 6202, prepared by U.S. Embassy, Seoul, Dec. 8, 2004; and U.S.

Department of State telegram, “June 2004 U.S.-Korea Trade Consultations: Intellectual Property Rights,”

message reference No. 134917, prepared by U.S. Department of State, Washington, D.C., June 18,

2004.

190USTR, 2005 National Trade Estimate Report on Foreign Trade Barriers, Mar. 30, 2005, p. 364,

and USTR, 2005 Trade Policy Agenda and 2004 Annual Report, Mar. 1, 2005, p. 202.

191 Discussions on rescinding the ban continued in 2005. USTR, 2005 National Trade Estimate

Report on Foreign Trade Barriers, Mar. 30, 2005, p. 364; and U.S. Department of State telegram, “A/S

Wayne Raises U.S. Beef Exports with Korean Trade Minister,” message reference No. 3069, prepared by

U.S. Embassy, Paris, May 6, 2005.

APPENDIX

Statistical Tables
A-2
Table A-1

Antidumping cases active in 2004, by USITC investigation number

(Affirmative = A; Negative = N)

USITCinvestigationnumber Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

731-TA-1024 Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . Brazil 01/31/03 A A A 731-TA-1025 Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . India 01/31/03 A A A 731-TA-1026 Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . Korea 01/31/03 A A A 731-TA-1027 Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . Mexico 01/31/03 A A A 731-TA-1028 Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . Thailand 01/31/03 A A A 731-TA-1034 Certain color television receivers . . . . . . . . . . . . . . . . . . . . . . . China 05/02/03 A A A 731-TA-1035 Certain color television receivers . . . . . . . . . . . . . . . . . . . . . . . Malaysia 05/02/03 A N N 

731-TA-1039 Wax and wax/resin thermal transfer ribbons . . . . . . . . . . . . France 05/30/03 A A A 731-TA-1040 Wax and wax/resin thermal transfer ribbons . . . . . . . . . . . . Japan 05/30/03 A A A 731-TA-1041 Wax and wax/resin thermal transfer ribbons . . . . . . . . . . . . Korea 05/30/03 A N N 731-TA-1043 Polyethylene retail carrier bags . . . . . . . . . . . . . . . . . . . . . . . . China 06/20/03 A A A 731-TA-1044 Polyethylene retail carrier bags . . . . . . . . . . . . . . . . . . . . . . . . Malaysia 06/20/03 A A A 731-TA-1045 Polyethylene retail carrier bags . . . . . . . . . . . . . . . . . . . . . . . . Thailand 06/20/03 A A A 731-TA-1046 Tetrahydrofurfuryl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 06/23/03 A A A 731-TA-1047 Ironing tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 06/30/03 A A A 731-TA-1048 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . Australia 07/31/03 A (4) (3) 731-TA-1050 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . Greece 07/31/03 A (4) (3) 731-TA-1051 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . Ireland 07/31/03 A (4) (3) 731-TA-1052 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . Japan 07/31/03 A (4) (3) 731-TA-1053 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . South Africa 07/31/03 A (4) (3) 731-TA-1054 Light-walled rectangular pipe and tube . . . . . . . . . . . . . . . . . . Mexico 09/09/03 A A A 731-TA-1055 Light-walled rectangular pipe and tube . . . . . . . . . . . . . . . . . . Turkey 09/09/03 A A A 731-TA-1056 Certain aluminum plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa 10/16/03 A A A 731-TA-1057 Certain processed hazelnuts . . . . . . . . . . . . . . . . . . . . . . . . . . Turkey 10/21/03 A (4) (3) 731-TA-1058 Wooden bedroom furniture . . . . . . . . . . . . . . . . . . . . . . . . . . China 10/31/03 A A A 731-TA-1059 Hand trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 11/13/03 A A A 731-TA-1060 Carbazole violet pigment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . China 11/21/03 A A A 731-TA-1061 Carbazole violet pigment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . India 11/21/03 A A A 731-TA-1062 Kosher chicken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 12/01/03 N (3) (3) 731-TA-1063 Warmwater shrimp and prawns . . . . . . . . . . . . . . . . . . . . . . . Brazil 12/31/03 A A A 

731-TA-1064 Warmwater shrimp and prawns . . . . . . . . . . . . . . . . . . . . . . . China 12/31/03 A A A 731-TA-1065 Warmwater shrimp and prawns . . . . . . . . . . . . . . . . . . . . . . . Ecuador 12/31/03 A A A 731-TA-1066 Warmwater shrimp and prawns . . . . . . . . . . . . . . . . . . . . . . . India 12/31/03 A A A 731-TA-1067 Warmwater shrimp and prawns . . . . . . . . . . . . . . . . . . . . . . . Thailand 12/31/03 A A A 731-TA-1068 Warmwater shrimp and prawns . . . . . . . . . . . . . . . . . . . . . . . Vietnam 12/31/03 A A A See footnotes at end of table.

A-3
Table A-1—Continued

Antidumping cases active in 2004, by USITC investigation number

(Affirmative = A; Negative = N)

USITCinvestigationnumber

Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

731-TA-1069 Outboard engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Japan 01/08/04

A

A

A 

731-TA-1070A Certain crepe paper products . . . . . . . . . . . . . . . . . . . . . . . . . China 02/17/04 A A A 

731-TA-1070B Certain tissue paper products . . . . . . . . . . . . . . . . . . . . . . . . . China 02/17/04 A A (5) 731-TA-1071 Magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 02/27/04 A A (5) 731-TA-1072 Magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Russia 02/27/04 A A (5) 

731-TA-1073 Certain circular welded carbon quality line pipe . . . . . . . . . . . China 03/03/04 A A (4) 

731-TA-1074 Certain circular welded carbon quality line pipe . . . . . . . . . . . Korea 03/03/04 A N (5) 

731-TA-1075 Certain circular welded carbon quality line pipe . . . . . . . . . . . Mexico 03/03/04 A A (5) 731-TA-1076 Live swine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 03/05/04 A A (5) 731-TA-1077 Polyethylene terephthalate resin . . . . . . . . . . . . . . . . . . . . . . . India 03/24/04 A A (5) 731-TA-1078 Polyethylene terephthalate resin . . . . . . . . . . . . . . . . . . . . . . . Indonesia 03/24/04 A A (5) 731-TA-1079 Polyethylene terephthalate resin . . . . . . . . . . . . . . . . . . . . . . . Taiwan 03/24/04 A N (5) 731-TA-1080 Polyethylene terephthalate resin . . . . . . . . . . . . . . . . . . . . . . . Thailand 03/24/04 A A (5) 731-TA-1081 Silicon metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa 03/31/04 (4) (3) (3) 

731-TA-1082 Chlorinated isocyanurates . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 05/14/04 A A (5) 

731-TA-1083 Chlorinated isocyanurates . . . . . . . . . . . . . . . . . . . . . . . . . . . . Spain 05/14/04 A A (5) 731-TA-1084 Purified carboxymethylcellulose . . . . . . . . . . . . . . . . . . . . . . . . Finland 06/09/04 A A (5) 731-TA-1085 Purified carboxymethylcellulose . . . . . . . . . . . . . . . . . . . . . . . . Mexico 06/09/04 A A (5) 731-TA-1086 Purified carboxymethylcellulose . . . . . . . . . . . . . . . . . . . . . . . . Netherlands 06/09/04 A A (5) 731-TA-1087 Purified carboxymethylcellulose . . . . . . . . . . . . . . . . . . . . . . . . Sweden 06/09/04 A A (5) 

731-TA-1088 Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taiwan 09/07/04 N (3) (3) 

731-TA-1089 Certain orange juice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brazil 12/27/04 (5) (5) (5) 

1 U.S. Department of Commerce, International Trade Administration (ITA). 2 For cases in which the final action was taken by the ITA, the date shown is the Federal Register notice date of that action. For cases in which the final action was take

USITC notification of Commerce is shown. 3 Not applicable. 4 The investigation was terminated or discontinued following withdrawal of the petition. 5 Pending as of Dec. 31, 2004.

Source: Compiled from data maintained by the Commission.

A-4
A-5

Table A-2

Antidumping duty orders in effect as of December 31, 2004

Country and commodity

Effective date of

original action

Argentina:

Honey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 10, 2001

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 19, 2001

Oil country tubular goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 11, 1995

Seamless pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 3, 1995

Light-walled rectangular tube . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 26, 1989

Barbed wire and barbless wire strand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 13, 1985

Australia:

Corrosion-resistant carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Bangladesh:

Cotton shop towels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 20, 1992

Belarus:

Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 7, 2001

Belgium:

Stainless steel plate in coils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 21, 1999

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 13, 1979

Brazil:

Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 28, 2004

Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 29, 2002

Hot-rolled carbon steel flat products (suspended) . . . . . . . . . . . . . . . . . . . . . . . . . July 6, 1999

Seamless pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 3, 1995

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 21, 1995

Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 22, 1994

Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 28, 1994

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Circular welded non-alloy steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 2, 1992

Silicon metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 31, 1991

Frozen concentrated orange juice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 5, 1987

Brass sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 12, 1987

Carbon steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 17, 1986

Iron construction castings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 9, 1986

Canada:

Hard red spring wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 23, 2003

Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 29, 2002

Softwood lumber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 22, 2002

Stainless steel plate in coils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 21, 1999

Corrosion-resistant carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Pure magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 31, 1992

Steel rails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1989

Brass sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 12, 1987

Iron construction castings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 5, 1986

Chile:

Individually quick frozen red raspberries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 9, 2002

Preserved mushrooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 2, 1998

China:

Carbazole violet pigment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 29, 2004

Hand trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 2, 2004

Polyethylene retail carrier bags . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 9, 2004

Ironing tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 6, 2004

Tetrahydrofurfuryl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 6, 2004

Color television receivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 3, 2004

Malleable iron pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 12, 2003

Refined brown aluminum oxide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 19, 2003

Barium carbonate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 1, 2003

Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 1, 2003
A-6

Table A-2—Continued

Antidumping duty orders in effect as of December 31, 2004

Country and commodity

Effective date of

original action

China—Continued

Saccharin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 9, 2003

Lawn and garden steel fence posts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 12, 2003

Non-malleable cast iron pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 7, 2003

Ferrovanadium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 28, 2003

Folding metal tables and chairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 27, 2002

Automotive replacement glass windshields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 4, 2002

Folding gift boxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 8, 2002

Honey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 10, 2001

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 29, 2001

Pure magnesium (granular) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 19, 2001

Foundry coke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 17, 2001

Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 7, 2001

Synthetic indigo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 19, 2000

Non-frozen apple juice concentrate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 5, 2000

Creatine monohydrate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 4, 2000

Preserved mushrooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1999

Carbon steel plate (suspended) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 24, 1997

Crawfish tail meat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1997

Persulfates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 7, 1997

Brake rotors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 17, 1997

Furfuryl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 21, 1995

Pure magnesium (ingot) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 12, 1995

Glycine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 29, 1995

Cased pencils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 28, 1994

Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 22, 1994

Paper clips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 25, 1994

Fresh garlic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 16, 1994

Sebacic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1994

Helical spring lock washers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 19, 1993

Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1992

Carbon steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 6, 1992

Sparklers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 18, 1991

Silicon metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 10, 1991

Axes and adzes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1991

Bars and wedges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1991

Hammers and sledges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1991

Picks and mattocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1991

Sodium thiosulfate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1991

Tapered roller bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 15, 1987

Porcelain-on-steel cooking ware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 2, 1986

Petroleum wax candles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 28, 1986

Iron construction castings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 9, 1986

Natural bristle paint brushes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 14, 1986

Barium chloride . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 17, 1984

Chloropicrin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 22, 1984

Potassium permanganate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 31, 1984

Cotton shop towels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 4, 1983

Greige polyester cotton print cloth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 16, 1983

Czech Republic:

Small diameter seamless pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 14, 2000

Finland:

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993
A-7

Table A-2—Continued

Antidumping duty orders in effect as of December 31, 2004

Country and commodity

Effective date of

original action

France:

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 7, 2002

Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 13, 2002

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 27, 1999

Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 28, 1994

Corrosion-resistant carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Ball bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Spherical plain bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Brass sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 6, 1987

Sorbitol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 9, 1982

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 13, 1979

Germany:

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 7, 2002

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 27, 1999

Seamless pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 3, 1995

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Corrosion-resistant carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Sodium thiosulfate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1991

Ball bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Brass sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 6, 1987

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 13, 1979

Hungary:

Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 8, 2002

India:

Carbazole violet pigment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 29, 2004

Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 28, 2004

Polyethylene terephthalate (PET) film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 1, 2002

Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 23, 2002

Hot-rolled carbon steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 3, 2001

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Preserved mushrooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1999

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 21, 1995

Forged stainless steel flanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 9, 1994

Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 1, 1993

Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 2, 1993

Welded carbon steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 12, 1986

Indonesia:

Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 29, 2002

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 3, 2001

Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 7, 2001

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Preserved mushrooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1999

Iran:

Raw in-shell pistachios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 17, 1986

Italy:

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 7, 2002

Stainless steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 23, 2001

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 27, 1999

Stainless steel plate in coils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 21, 1999

Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1998

Pasta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 24, 1996

Oil country tubular goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 11, 1995

Grain-oriented silicon electrical steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 12, 1994

Ball bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989
A-8

Table A-2—Continued

Antidumping duty orders in effect as of December 31, 2004

Country and commodity

Effective date of

original action

Italy—Continued

Granular polytetrafluoroethylene resin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 30, 1988

Brass sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 6, 1987

Pressure sensitive plastic tape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 21, 1977

Japan:

Ceramic station post insulators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 30, 2003

Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 2, 2003

Welded large diameter line pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 6, 2001

Stainless steel angle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 18, 2001

Tin mill products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 28, 2000

Large diameter seamless pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 26, 2000

Small diameter seamless pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 26, 2000

Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 19, 2000

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 27, 1999

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 29, 1999

Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1998

Clad steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 2, 1996

Oil country tubular goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 11, 1995

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 21, 1995

Grain-oriented silicon electrical steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 10, 1994

Corrosion-resistant carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Electroluminescent flat panel displays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 4, 1991

Gray portland cement and clinker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 10, 1991

Mechanical transfer presses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 16, 1990

Ball bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Granular polytetrafluoroethylene resin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 24, 1988

Brass sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 12, 1988

Internal combustion industrial forklift trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 7, 1988

Stainless steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 25, 1988

Malleable cast iron pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 6, 1987

Carbon steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 1987

Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 8, 1978

Polychloroprene rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 6, 1973

Kazakhstan:

Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 23, 2002

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 21, 2001

Korea:

Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 28, 2004

Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 1, 2003

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 7, 2002

Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 7, 2001

Stainless steel angle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 18, 2001

Structural steel beam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 18, 2000

Polyester staple fiber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 25, 2000

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 27, 1999

Stainless steel plate in coils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 21, 1999

Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1998

Oil country tubular goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 11, 1995

Corrosion-resistant carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Stainless steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 23, 1993

Welded ASTM A-312 stainless steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 30, 1992

Circular welded non-alloy steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 2, 1992
A-9

Table A-2—Continued

Antidumping duty orders in effect as of December 31, 2004

Country and commodity

Effective date of

original action

Korea—Continued

Polyethylene terephthalate (PET) film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 5, 1991

Top-of-the-stove stainless steel cooking ware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 20, 1987

Malleable cast iron pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 23, 1986

Latvia:

Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 7, 2001

Malaysia:

Polyethylene retail carrier bags . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 9, 2004

Stainless steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 23, 2001

Extruded rubber thread . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 7, 1992

Mexico:

Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 28, 2004

Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 29, 2002

Welded large diameter line pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 27, 2002

Large diameter seamless pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 11, 2000

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 27, 1999

Fresh tomatoes (suspended) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 1, 1996

Oil country tubular goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 11, 1995

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Circular welded non-alloy steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 2, 1992

Gray portland cement and clinker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 30, 1990

Moldova:

Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 29, 2002

Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 7, 2001

Netherlands:

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 29, 2001

Norway:

Fresh and chilled Atlantic salmon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 12, 1991

Philippines:

Stainless steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 23, 2001

Poland:

Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 7, 2001

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Portugal:

Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 8, 2002

Romania:

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 29, 2001

Small diameter seamless pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 10, 2000

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Russia:

Silicon metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 26, 2003

Ammonium nitrate (suspended) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 19, 2000

Hot-rolled carbon steel flat products (suspended) . . . . . . . . . . . . . . . . . . . . . . . . . . . July 12, 1999

Carbon steel plate (suspended) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 24, 1997

Ferrovanadium and nitrided vanadium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 10, 1995

Uranium (suspended) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 16, 1992

Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Singapore:

Ball bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

South Africa:

Ferrovanadium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 28, 2003

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 19, 2001

Small diameter seamless pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 26, 2000

Stainless steel plate in coils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 21, 1999
A-10

Table A-2—Continued

Antidumping duty orders in effect as of December 31, 2004

Country and commodity

Effective date of

original action

Spain:

Stainless steel angle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 18, 2001

Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1998

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 2, 1995

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Sweden:

Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1998

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Taiwan:

Polyethylene terephthalate (PET) film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 1, 2002

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 29, 2001

Polyester staple fiber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 25, 2000

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 27, 1999

Stainless steel plate in coils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 21, 1999

Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1998

Forged stainless steel flanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 9, 1994

Helical spring lockwashers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 28, 1993

Stainless steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 16, 1993

Welded ASTM A-312 stainless steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 30, 1992

Circular welded non-alloy steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 2, 1992

Light-walled rectangular tube . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 27, 1989

Top-of-the-stove stainless steel cooking ware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 20, 1987

Carbon steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 17, 1986

Porcelain-on-steel cooking ware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 2, 1986

Small diameter carbon steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 7, 1984

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 13, 1979

Thailand:

Polyethylene retail carrier bags . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 9, 2004

Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 28, 2004

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 29, 2001

Furfuryl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 25, 1995

Canned pineapple . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 18, 1995

Carbon steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 6, 1992

Welded carbon steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 11, 1986

Trinidad and Tobago:

Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 29, 2002

Turkey:

Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 17, 1997

Pasta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 24, 1996

Welded carbon steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1986

Ukraine:

Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 29, 2002

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 29, 2001

Ammonium nitrate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 12, 2001

Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 7, 2001

Carbon steel plate (suspended) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 24, 1997

Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 31, 1994

Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

United Kingdom:

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 7, 2002

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 27, 1999

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1993

Sodium thiosulfate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 19, 1991

Ball bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989
A-11

Table A-2—Continued

Antidumping duty orders in effect as of December 31, 2004

Country and commodity

Effective date of

original action

Venezuela:

Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 23, 2002

Vietnam:

Frozen fish fillets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 12, 2003

Source: Compiled from data maintained by the Commission.
Table A-3

Countervailing duty cases active in 2004, by USITC investigation number

(Affirmative = A; Negative = N)

USITCinvestigationnumber Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

701-TA-432 Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . . . India 1/31/03 A A A 701-TA-437 Carbazole violet pigment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . India 11/21/03 A A A 701-TA-438 Live swine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 3/5/04 A N (3) 

701-TA-439 Polyethylene terephthalate resin . . . . . . . . . . . . . . . . . . . . . . . . . India 3/24/04 A A (3) 701-TA-440 Polyethylene terephthalate resin . . . . . . . . . . . . . . . . . . . . . . . . . Thailand 3/24/04 A N (3) 701-TA-441 Silicon metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brazil 3/31/04 (4) (5) (5) 

1 International Trade Administration (ITA), U.S. Department of Commerce. 2 For cases in which the final action was taken by the ITA, the date shown is the Federal Register notice date of that action. For cases in which the final action was take

USITC notification of Commerce is shown.

3 Pending as of Dec. 31, 2004. 4 The investigation was discontinued following withdrawal of the petition. 5 Not applicable.

Source: Compiled from data maintained by the Commission.

A-12
A-13

Table A-4

Countervailing duty orders in effect as of December 31, 2004

Country and commodity

Effective date of

original action

Argentina:

Honey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 10, 2001

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 11, 2001

Belgium:

Stainless steel plate in coils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 11, 1999

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 17, 1993

Brazil:

Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 22, 2002

Hot-rolled carbon steel flat products (suspended) . . . . . . . . . . . . . . . . . . . . . . . . . . . July 6, 1999

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 17, 1993

Brass sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 8, 1987

Heavy iron construction castings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1986

Canada:

Hard red spring wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 23, 2003

Softwood lumber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 22, 2002

Alloy magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 31, 1992

Pure magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 31, 1992

Steel rails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 22, 1989

European Union:

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 31, 1978

France:

Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 13, 2002

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Corrosion-resistant carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 17, 1993

Brass sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 6, 1987

Germany:

Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 13, 2002

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 17, 1993

Hungary:

Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 8, 2002

India:

Carbazole violet pigment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 29, 2004

Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 4, 2004

Polyethylene terephthalate (PET) film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 1, 2002

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 3, 2001

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 2, 1993

Indonesia:

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 3, 2001

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Iran:

Roasted in-shell pistachios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 7, 1986

Raw in-shell pistachios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 11, 1986

Italy:

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 8, 2002

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 6, 1999

Stainless steel plate in coils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 11, 1999

Pasta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 24, 1996

Oil country tubular goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 10, 1995

Grain-oriented silicon electrical steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 7, 1994
A-14

Table A-4–Continued

Countervailing duty orders in effect as of December 31, 2004

Country and commodity

Effective date of

original action

Korea:

DRAMs and DRAM modules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 11, 2003

Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 14, 2000

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 10, 2000

Stainless steel sheet and strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 6, 1999

Corrosion-resistant carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 17, 1993

Top-of-the-stove stainless steel cooking ware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 20, 1987

Mexico:

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 17, 1993

Netherlands:

Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 13, 2002

Norway:

Fresh and chilled Atlantic salmon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 12, 1991

Pakistan:

Cotton shop towels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 9, 1984

South Africa:

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 3, 2001

Stainless steel plate in coils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 11, 1999

Spain:

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 17, 1993

Sweden:

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 17, 1993

Taiwan:

Top-of-the-stove stainless steel cooking ware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 20, 1987

Thailand:

Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 3, 2001

Turkey:

Pasta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 24, 1996

Welded carbon steel pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 7, 1986

United Kingdom:

Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 13, 2002

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 17, 1993

Source: Compiled from data maintained by the Commission.
A-15

Table A-5

Reviews of existing antidumping duty orders and suspension agreements

completed in 2004, by date of completion

USITC

investigation

number Product

Country of

origin

Completion

date1 Action

AA1921-167 Pressure sensitive plastic tape . . . . . . . . . . . . . . . Italy 06/07/04 Continued

AA1921-188 Prestressed concrete steel wire strand . . . . . . . . . Japan 06/07/04 Continued

731-TA-149 Barium chloride . . . . . . . . . . . . . . . . . . . . . . . . . . China 07/01/04 Continued

731-TA-44 Sorbitol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . France 07/16/04 Continued

731-TA-770 Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . Italy 07/22/04 Continued

731-TA-771 Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . Japan 07/22/04 Continued

731-TA-772 Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . Korea 07/22/04 Continued

731-TA-773 Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . Spain 07/22/04 Continued

731-TA-774 Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . Sweden 07/22/04 Continued

731-TA-775 Stainless steel wire rod . . . . . . . . . . . . . . . . . . . . Taiwan 07/22/04 Continued

731-TA-130 Chloropicrin . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 08/03/04 Continued

731-TA-208 Barbed wire and barbless wire strand . . . . . . . . Argentina 08/30/04 Continued

731-TA-776 Certain preserved mushrooms . . . . . . . . . . . . . . . Chile 10/28/04 Continued

731-TA-777 Certain preserved mushrooms . . . . . . . . . . . . . . . China 10/28/04 Continued

731-TA-778 Certain preserved mushrooms . . . . . . . . . . . . . . . India 10/28/04 Continued

731-TA-779 Certain preserved mushrooms . . . . . . . . . . . . . . . Indonesia 10/28/04 Continued

731-TA-244 Natural bristle paintbrushes . . . . . . . . . . . . . . . . China 11/09/04 Continued

1 The completion date shown is the date of the USITC notification of Commerce.

Source: Compiled from data maintained by the Commission.
A-16

Table A-6

Section 337 investigations and related proceedings completed by the U.S.

International Trade Commission during 2004 and those pending on

December 31, 2004

Status of

Investigation Article Country1 Commission determination

Completed:

337-TA-406 Certain Lens-Fitted Film Packages China, Hong Kong,

Korea

Two related (ancillary)

proceedings completed:

(1) advisory opinion

(Commission found no

infringement); and

(2) bond forfeiture

(Commission ordered

forfeiture of portion of

bond posted by a

respondent).

337-TA-469 Certain Bearings and Packaging

Thereof

Mexico, Canada Terminated based on a

finding of no violation.

337-TA-474 Certain Recordable Compact Discs and

Rewritable Compact Discs

Hong Kong, Taiwan Terminated based on a

finding of no violation.

337-TA-481 Certain Display Controllers with

Upscaling Functionality and

Products

Taiwan Issued a limited exclusion

order.2

337-TA-487 Certain Agricultural Vehicles and

Components Thereof

China, Netherlands,

France, Germany,

and Canada

Issued a general exclusion

order, two limited

exclusion orders, and 11

cease and desist orders.

337-TA-489 Certain Sildenafil or Any

Pharmaceutically

Acceptable Salt Thereof, Such as

Sildenafil Citrate, and Products

Containing Same

Belize, Israel,

Nicaragua, Syria,

United Kingdom,

India, China

Issued a general exclusion

order.

337-TA-490 Certain Power Amplifier Chips,

Broadband Tuner Chips,

Transceiver Chips, and Products

Containing Same

Taiwan, Canada,

China

Terminated based on a

finding of no violation.

337-TA-491 Certain Display Controllers and

Products Containing Same

Taiwan Issued a limited exclusion

order.2

337-TA-492 Certain Plastic Grocery and Retail Bags Thailand, China,

Singapore, Hong

Kong

Issued a general exclusion

order.

337-TA-493 Certain Zero-Mercury-Added Alkaline

Batteries, Parts Thereof, and

Products Containing Same

China, Hong Kong,

Indonesia, Japan,

Singapore

Terminated based on a

finding of no violation.

337-TA-496 Certain Home Vacuum Packaging

Machines

Korea Terminated based on a

settlement agreement.

337-TA-497 Certain Universal Transmitters for

Garage Door Openers

Hong Kong,

Canada

Terminated based on a

settlement agreement.

337-TA-498 Certain Insect Traps China Issued a limited exclusion

order and a cease and

desist order.

337-TA-500 Certain Purple Protective Gloves Malaysia, China Issued a general exclusion

order.

337-TA-502 Certain Automobile Tail Light Lenses

and Products Incorporating Same

Germany Terminated based on a

finding of no violation.

337-TA-504 Certain Signature Capture Transaction

Devices and Component Parts

Thereof, and Systems That Employ

Such Devices

France, Canada Terminated based on a

settlement agreement.

337-TA-507 Certain Medical Devices Used to

Compact Inner Bone Tissue and

Products Containing Same

Israel Terminated based on a

consent order.

337-TA-508 Certain Absorbent Garments Mexico Terminated based on a

consent order.

See footnote at end of table.
A-17

Table A-6—Continued

Section 337 investigations and related proceedings completed by the U.S.

International Trade Commission during 2004 and those pending on

December 31, 2004

Status of

Investigation Article Country1 Commission determination

337-TA-513 Certain Electronic Devices, Including

Power Adapters, Power Converters,

External Batteries And Detachable

Tips, Used to Power and/or Charge

Mobile Electronic Products, and

Components Thereof

Taiwan, Korea Terminated based on

withdrawal of the

complaint.

337-TA-520 Certain Digital Image Storage and

Retrieval Devices

Japan Terminated based on a

settlement agreement.

337-TA-406 Certain Lens-Fitted Film Packages Hong Kong Two related (ancillary)

proceedings pending

before the

Commission:

(1) enforcement

proceeding; and

(2) remand of

enforcement/advisory

opinion proceeding from

the Commission.

337-TA-486 Certain Agricultural Tractors, Lawn

Tractors, Riding Lawnmowers, and

Components Thereof

China Ancillary enforcement

proceeding pending

before the Commission.

337-TA-494 Certain Automotive Measuring Devices,

Products Containing Same, and

Bezels for Such Devices

Taiwan Pending before the

Commission.

337-TA-499 Certain Audio Digital-to-Analog

Converters and Products

Containing Same

United Kingdom Pending before the

Commission.

337-TA-501 Certain Encapsulated Integrated Circuit

Devices and Products Containing

Same

Malaysia Pending before the

Commission.

337-TA-503 Certain Automated Mechanical

Transmission Systems for

Medium-Duty and Heavy-Duty

Trucks, and Components Thereof

Germany Pending before the

Commission.

337-TA-505 Certain Gun Barrels Used In Firearms

Training Systems

Switzerland,

Netherlands

Pending before the

Commission.

337-TA-506 Certain Optical Disk Controller Chips

and Chipsets and Products

Containing Same, Including DVD

Players and PC Optical Storage

Devices

Taiwan, Singapore,

China, Hong Kong,

Japan

Pending before the ALJ.

337-TA-509 Certain Personal Computers, Server

Computers, and Components

Thereof

Taiwan, China Pending before the ALJ.

337-TA-510 Certain Systems for Detecting and

Removing Viruses or Worms,

Components Thereof, and Products

Containing Same

Taiwan, Japan Pending before the ALJ.

337-TA-511 Certain Pet Food Treats China, Brazil Pending before the ALJ.

337-TA-512 Certain Light-Emitting Diodes and

Products Containing Same

Malaysia Pending before the ALJ.

337-TA-514 Certain Plastic Food Containers China Pending before the ALJ.

337-TA-515 Certain Injectable Implant

Compositions

Sweden Pending before the ALJ.

See footnote at end of table.
A-18

Table A-6—Continued

Section 337 investigations and related proceedings completed by the U.S.

International Trade Commission during 2004 and those pending on

December 31, 2004

Status of

Investigation Article Country1 Commission determination

337-TA-516 Certain Disc Drives, Components

Thereof, and Products Containing

Same

China Pending before the ALJ.

337-TA-517 Certain Shirts With Pucker-Free Seams

and Methods of Producing Same

Hong Kong Pending before the ALJ.

337-TA-518 Certain Ear Protection Devices China, Taiwan Pending before the ALJ.

337-TA-519 Certain Personal Computers, Monitors,

and Components Thereof

Mexico, China Pending before the ALJ.

337-TA-521 Certain Voltage Regulator Circuits,

Components Thereof and Products

Containing Same

China, Malaysia Pending before the ALJ.

337-TA-522 Certain Ink Markers and Packaging

Thereof

China, India,

Indonesia, Korea

Pending before the ALJ.

337-TA-523 Certain Optical Disk Controller Chips

and Chipsets and Products

Containing the Same, Including

DVD Players and PC Optical

Storage Devices II

Taiwan Pending before the ALJ.

337-TA-524 Certain Point of Sale Terminals and

Components Thereof

China, France,

Israel, Korea,

United Kingdom

Pending before the ALJ.

337-TA-525 Certain Semiconductor Devices and

Products Containing Same

China Pending before the ALJ.

337-TA-526 Certain NAND Flash Memory Circuits

and Products Containing Same

Singapore Pending before the ALJ.

337-TA-527 Certain Digital Image Storage and

Retrieval Devices

Taiwan, Japan Pending before the ALJ.

1 This column lists the countries of the foreign respondents named in the investigation. 2 Inv. No 337-TA-481 was consolidated with Inv. No. 337-TA-491. Only one limited exclusion order was

issued in the consolidated case.

Source: U.S. International Trade Commission.
A-19

Table A-7

Outstanding Section 337 exclusion orders as of December 31, 2004

Investigation

No. Article Country1 Date patentexpires2

337-TA-55 Certain Novelty Glasses Hong Kong Nonpatent

337-TA-69 Certain Airtight Cast-Iron Stoves Taiwan, Korea Nonpatent

337-TA-87 Certain Coin-Operated Audio-Visual

Games and Components Thereof

Japan, Taiwan Nonpatent

337-TA-105 Certain Coin-Operated Audio-Visual

Games and Components Thereof

Japan, Taiwan Nonpatent

337-TA-112 Certain Cube Puzzles Taiwan, Japan, Canada Nonpatent

337-TA-114 Certain Miniature Plug-In Blade Fuses Taiwan Nonpatent

337-TA-118 Certain Sneakers With Fabric Uppers and

Rubber Soles

Korea Nonpatent

337-TA-137 Certain Heavy-Duty Staple Gun Tackers Taiwan, Hong Kong,

Korea

Nonpatent

337-TA-152 Certain Plastic Food Storage Containers Hong Kong, Taiwan Nonpatent

337-TA-167 Certain Single Handle Faucets Taiwan Nonpatent

337-TA-174 Certain Woodworking Machines Taiwan, South Africa Nonpatent

337-TA-195 Certain Cloisonne Jewelry Taiwan Nonpatent

337-TA-197 Certain Compound Action Metal Cutting

Snips and Components Thereof

Taiwan Nonpatent

337-TA-229 Certain Nut Jewelry and Parts Thereof Philippines, Taiwan Nonpatent

337-TA-231 Certain Soft Sculpture Dolls, Popularly

Known as ”Cabbage Patch Kids,”

Related Literature, and Packaging

Therefore

No foreign respondents Nonpatent

337-TA-266 Certain Reclosable Plastic Bags and Tubing Singapore, Taiwan,

Korea, Thailand, Hong

Kong

Nonpatent

337-TA-276 Certain Erasable Programmable Read

Only Memories, Components Thereof,

Products Containing Same and

Processes for Making Such Memories

Korea June 7, 20053

337-TA-279 Certain Plastic Light Duty Screw Anchors Taiwan Nonpatent

337-TA-285 Certain Chemiluminescent Compositions

and Components Thereof and Methods

of Using, and Products Incorporating,

the Same

France Nonpatent

337-TA-287 Certain Strip Lights Taiwan Nonpatent

337-TA-295 Certain Novelty Teleidoscopes Hong Kong, Taiwan Nonpatent

337-TA-308 Certain Key Blanks For Keys of High

Security Cylinder Locks

Korea June 19, 20053

337-TA-314 Certain Battery-Powered Ride-On Toy

Vehicles and Components Thereof

Taiwan Sept. 22, 20063

337-TA-319 Certain Automotive Fuel Caps and Radiator

Caps and Related Packaging and

Promotional Materials

Taiwan Nonpatent

June 22, 20063

July 22, 20063

337-TA-321 Certain Soft Drinks and Their Containers Colombia Nonpatent

337-TA-324 Certain Acid-Washed Denim Garments

and Accessories

Hong Kong, Taiwan,

Brazil, Chile

Oct. 22, 20063

337-TA-333 Certain Woodworking Accessories Taiwan Mar. 2, 20083

337-TA-360 Certain Devices For Connecting Computers

Via Telephone Lines

Taiwan Feb. 13, 2007

337-TA-365 Certain Audible Alarm Devices For Divers Taiwan Aug. 21, 20073

Oct. 12, 20083

337-TA-372 Certain Neodymium-Iron-Boron Magnets,

Magnet Alloys, and Articles Containing

Same

China, Hong Kong,

Taiwan

May 20, 20053

337-TA-374 Certain Electrical Connectors and Products

Containing Same

Taiwan Jan. 22, 2008

337-TA-376 Certain Variable Speed Wind Turbines and

Components Thereof

Germany Feb. 1, 20113

See footnotes at end of table.
A-20

Table A-7—Continued

Outstanding Section 337 exclusion orders as of December 31, 2004

Investigation

No. Article Country1 Date patentexpires2

337-TA-378 Certain Asian-Style Kamaboko Fish Cakes Japan Nonpatent

337-TA-380 Certain Agricultural Tractors Under 50

Power Take-Off Horsepower

Japan Nonpatent

337-TA-383 Certain Hardware Logic Emulation Systems

and Components Thereof

France Oct. 5, 2008

Oct. 5, 2008

Oct. 5, 2008

Apr. 28, 2009

Apr. 28, 2009

337-TA-391 Certain Toothbrushes and the Packaging

Thereof

China, Taiwan Aug. 4, 2006

337-TA-406 Certain Lens-Fitted Film Packages China, Hong Kong,

Korea

May 23, 2006

Aug. 8, 2006

Nov. 28, 2006

Sept. 4, 2007

Sept. 4, 2007

Nov. 27, 2007

Apr. 5, 2008

Nov. 5, 2008

Mar. 7, 2009

Aug. 10, 2010

Aug. 13, 2010

Nov. 1, 2011

Jan. 10, 2012

Apr. 18, 2012

July 25, 2012

337-TA-413 Certain Rare-Earth Magnets and Magnetic

Material and Articles Containing Same

China, Taiwan Feb. 7, 2006

July 25, 2006

June 7, 2015

337-TA-416 Certain Compact Multipurpose Tools China, Taiwan July 1, 2011

Oct. 21, 2011

Oct. 21, 2011

Oct. 21, 2011

337-TA-422 Certain Two-Handle Centerset Faucets and

Escutcheons, And Components Thereof

Taiwan, China May 31, 2008

337-TA-424 Certain Cigarettes and Packaging Thereof No foreign respondents Nonpatent

337-TA-440 Certain 4-Androstenediol China July 13, 2018

337-TA-446 Certain Ink Jet Cartridges and Components

Thereof

Taiwan Nov. 22, 2005

Nov. 22, 2005

Dec. 6, 2005

Nov. 3, 2007

Dec. 22, 2008

Apr. 25, 2012

337-TA-448 Certain Oscillating Sprinklers, Sprinkler

Components, and Nozzles

Taiwan, Israel, Germany July 8, 2014

337-TA-460 Certain Sortation Systems, Parts Thereof,

and Products Containing Same

Netherlands Oct. 31, 2010

337-TA-473 Certain Video Game Systems, Accessories,

and Components Thereof

No foreign respondents Dec. 18, 2015

Dec. 25, 2015

337-TA-481/

491

Certain Display Controllers with Upscaling

Functionality And Products Containing

Same; and Certain Display Controllers

And Products Containing Same

Taiwan Feb. 24, 2017

337-TA-482 Certain Compact Disc and DVD Holders Denmark, Hong Kong,

Taiwan

May 1, 2015

337-TA-486 Certain Agricultural Tractors, Lawn

Tractors, Riding Lawnmowers, and

Components Thereof

China Nonpatent

337-TA-487 Certain Agricultural Vehicles and

Components Thereof

China, Netherlands,

France, Germany, and

Canada

Nonpatent

337-TA-489 Certain Sildenafil or Any Pharmaceutically

Acceptable Salt Thereof, Such as

Sildenafil Citrate, and Products

Containing Same

Belize, Israel,

Nicaragua, Syria,

United Kingdom, India,

China

June 18, 2011

See footnotes at end of table.
A-21

Table A-7—Continued

Outstanding Section 337 exclusion orders as of December 31, 2004

Investigation

No.

Date patent

expires2 Country1 Article

337-TA-492 Certain Plastic Grocery and Retail Bags Thailand, China,

Singapore, Hong Kong

Dec. 6, 2010

337-TA-498 Certain Insect Traps China Jan. 30, 2018

337-TA-500 Certain Purple Protective Gloves Malaysia, China Nonpatent

1 This column lists the countries of the foreign respondents named in the investigation. 2 Multiple dates indicate the expiration dates of separate patents within the investigation. 3 Patent term extended pursuant to 35 U.S.C. 154(c).

Source: U.S. International Trade Commission, Office of Unfair Import Investigations.
Table A-8

U.S. imports for consumption of leading GSP duty-free imports, 2004

(1,000 dollars)

HTSRank

HTSNo. Description

Total

imports

1 2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . . . . . . . . . . . . . . 57,839,053 2 7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps . . . . . . . . . . . . . . 5,165,600 3 2905.11.20 Methanol (methyl alcohol), n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,036,733 

4 8544.30.00 Ignition wiring sets, other wiring sets of a kind used in vehicles, aircraft or ships . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,433,529 5 7113.19.29 Gold necklaces and neck chains, other than rope or mixed link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 891,656 6 2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . 36,174,062 7 7606.12.30 Aluminum alloy plates, sheets, and strip, of a thickness exceeding 0.2 mm, rectangular

(including square), not clad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,344,088 

8 7202.41.00 Ferrochromium containing more than 3 percent of carbon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274,864 

9 7202.30.00 Ferrosilicon manganese ....................................................................... 385,890 

10 4412.19.40 Plywood of wood sheets not over 6 mm thick, with outer plies of coniferous wood, with face

ply n.e.s.o.i., clear or not surface covered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451,977 

11 8708.39.50 Brakes and servo-brakes and parts thereof, n.e.s.o.i., excluding mounted brake linings, for

motor vehicles not agricultural tractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,951,888 

12 2909.19.14 Methyl tertiary-butyl ether (MTBE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697,321 13 8528.12.28 Non-high definition color television reception apparatus, nonprojection, video display

diagonal over 35.56 cm, incorporating a VCR or player . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 552,102 

14 8708.70.45 Road wheels for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,577,084 

15 4107.11.50 Full grain unsplit upholstery leather of bovines n.e.s.o.i. and equines, no hair on, prepared

after tanning or crusting, not of HTS 4114 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281,150 

16 7408.11.60 Refined copper wire, with a maximum cross-sectional dimension over 6 but not over 9.5 millimeters . . . . . . . . . . . . . 704,008 

17 8409.99.91 Parts n.e.s.o.i., used solely or principally with compression-ignition internal combustion piston

engines, for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 782,344 

18 8708.99.80 Parts and accessories n.e.s.o.i., of motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,705,787 

19 4418.90.45 Builders’ joinery and carpentry of wood, including cellular wood panels, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,316,760 

20 6802.93.00 Monumental or building stone & arts. thereof, of granite, further worked than simply cut/sawn, n.e.s.o.i. ......... 907,614 

Top 20 items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,473,509 All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,328,871,750 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,453,345,259 

Note.—Statistics do not include imports from the U.S. Virgin Islands. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”

Source: Compiled from official statistics of the U.S. Department of Commerce.

A-22
Table A-9

U.S. imports for consumption and imports eligible for GSP treatment, by import categories under the Harmonized T

(Million dollars)

HTSsector Rank Description

Total

imports

SECTION I 1 Live animals; animal products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,318 SECTION II 2 Vegetable products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,277 SECTION III 3 Animal and vegetable fats, oils, and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,226 SECTION IV 4 Prepared foodstuffs; beverages, spirits; tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,510 SECTION V 5 Mineral products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192,943 SECTION VI 6 Chemical products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,937 SECTION VII 7 Plastics and rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,831 SECTION VIII 8 Raw hides and skins, leather, furskins; saddlery; handbags . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,417 

SECTION IX 9 Wood; charcoal; cork ; straw and other plaiting materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,552 SECTION X 10 Wood pulp; paper and paperboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,023 SECTION XI 11 Textiles and textile articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,601 SECTION XII 12 Footwear; headgear; umbrellas; artificial flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,615 SECTION XIII 13 Stone, plaster, cement, asbestos, ceramic and glass articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,662 SECTION XIV 14 Pearls, precious or semi-precious stones; imitation jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,291 SECTION XV 15 Base metals and articles of base metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,094 SECTION XVI 16 Machinery and appliances; electrical equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382,761 SECTION XVII 17 Vehicles, aircraft, vessels, transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,222 SECTION XVIII 18 Optical, photographic, medical, and musical instruments; clocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,423 SECTION XIX 19 Arms and ammunition; parts and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,357 SECTION XX 20 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,891 SECTION XXI 21 Works of art, collectors’ pieces and antiques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,298 SECTION XXII 22 Special classification provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,094 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,453,345 

Note.—Because of rounding, figures may not add to totals shown.Source: Compiled from official statistics of the U.S. Department of Commerce.

A-23
A-24

Table A-10

U.S. imports for consumption under AGOA provisions, by source,

2002-04

(1,000 dollars)

Rank Source 2002 2003 2004

Percent Change

2003-04

1 Nigeria . . . . . . . . . . . . . . . . . 5,409,176 9,353,914 15,415,913 64.8

2 Gabon . . . . . . . . . . . . . . . . . 1,145,478 1,177,431 1,919,407 63.0

3 Angola . . . . . . . . . . . . . . . . . (1

) (1) 1,249,211 (2)

4 South Africa . . . . . . . . . . . . . 789,552 998,420 832,441 -16.6

5 Lesotho . . . . . . . . . . . . . . . . . 317,803 372,544 447,622 20.2

6 Republic of the Congo . . . . . . 103,808 337,899 342,248 1.3

7 Madagascar . . . . . . . . . . . . . 75,838 186,187 314,842 69.1

8 Chad 0 14,438 293,801 1,934.9

9 Kenya 124,337 180,599 279,898 55.0

10 Cameroon . . . . . . . . . . . . . . . 115,542 146,746 242,725 65.4

11 Swaziland . . . . . . . . . . . . . . . 74,312 127,005 175,927 38.5

12 Mauritius . . . . . . . . . . . . . . . . 106,528 135,111 147,816 9.4

13 Côte d’Ivoire . . . . . . . . . . . . . 27,265 46,361 88,601 91.1

14 Namibia . . . . . . . . . . . . . . . . 1,543 32,132 75,904 136.2

15 Ghana . . . . . . . . . . . . . . . . . 23,001 29,156 63,170 116.7

16 Malawi . . . . . . . . . . . . . . . . . 41,320 35,837 35,052 -2.2

17 Guinea-Bissau . . . . . . . . . . . . 0 0 26,131 (2)

18 Botswana . . . . . . . . . . . . . . . . 3,707 6,324 20,138 218.5

19 Uganda . . . . . . . . . . . . . . . . . 13 1,442 4,022 179.0

20 Ethiopia . . . . . . . . . . . . . . . . . 1,319 1,772 3,532 99.3

21 Tanzania . . . . . . . . . . . . . . . . 639 1,110 2,984 168.8

22 Cape Verde . . . . . . . . . . . . . . 0 2,452 2,902 18.3

23 Mozambique . . . . . . . . . . . . . 186 2,516 2,151 -14.5

24 Zambia . . . . . . . . . . . . . . . . . 52 0 22 (2)

25 Senegal . . . . . . . . . . . . . . . . . 0 11 7 -36.4

26 Mali . 1 0 3 814.6

27 Sierra Leone . . . . . . . . . . . . . 0 0 3 (2)

28 Niger 0 2 0 -100.0

Total . . . . . . . . . . . . . . . . . 8,361,422 13,189,410 21,986,472 66.7

1 Not AGOA-eligible.

2 Undefined.

Note.—Because of rounding, figures may not add to totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-11

U.S. imports for consumption of leading imports under AGOA, 2002-04

(1,000 dollars)

HTS No. Description 2002 2003 2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . . . . . . . . . . . . . . . 6,436,960 10,492,817 18,2710.19.05 Distillate and residual fuel oil (including blends) derived from petroleum or oils from bituminous

minerals, testing under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312,863 400,227 5

6110.20.20 Sweaters, pullovers and similar articles, knitted or crocheted, of cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,734 233,175 36204.62.40 Women’s or girls’ trousers, breeches and shorts, not knitted or crocheted, of cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 153,938 254,571 

2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . 16,140 51,248 6203.42.40 Men’s or boys’ trousers and shorts, not bibs, not knitted or crocheted, of cotton, not containing 15%

or more by weight of down, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161,475 213,648 2

2710.11.25 Naphthas (exc. motor fuel/mtr fuel blend. stock) fr petroleum oils & bitumin minerals (o/than crude)

or preps 70%+ by wt. fr petroleum oils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,388 137,767 2

8703.23.00 Mtr cars & o/mtr. vehicles for transport of persons, w/spark-ign. int. combust. recip. piston engine

w/cyl. cap. o/1500 cc n/o 3000 cc ............................................................. 338,959 319,362 

8703.24.00 Mtr cars & o/mtr. vehicles for transport of persons, w/spark-ign. int. combust. recip. piston engine

w/cyl. cap. o/ 3000 cc ....................................................................... 132,784 303,862 

7202.11.50 Ferromanganese containing by weight more than 4 percent of carbon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,305 39,394 6110.30.30 Sweaters, pullovers and similar articles, knitted or crocheted, of manmade fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . 39,506 57,190 

6205.20.20 Men’s or boys’ shirts, not knitted or crocheted, of cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,657 45,845 6109.10.00 T-shirts, singlets, tank tops and similar garments, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,350 46,343 6104.62.20 Women’s or girls’ trousers, breeches and shorts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,021 42,931 

6103.43.15 Men’s or boys’ trousers, breeches and shorts, knitted or crocheted, of synthetic fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . 11,952 25,151 

6104.63.20 Women’s or girls’ trousers, breeches and shorts, knitted or crocheted, of synthetic fibers, n.e.s.o.i. . . . . . . . . . . . . . . . 9,337 22,012 6106.10.00 Women’s or girls’ blouses and shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,483 22,174 

0802.90.98 Nuts nesi, fresh or dried, shelled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,406 18,773 0805.10.00 Oranges, fresh or dried . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,335 23,612 6204.63.35 Women’s or girls’ trousers, breeches &shorts, not knitted or crocheted, of synthetic fibers, n.e.s.o.i. . . . . . . . . . . . . . . 13,269 16,269 

6103.42.10 Men’s or boys’ trousers, breeches and shorts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,895 21,817 6105.10.00 Men’s or boys’ shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,146 22,410 

3823.70.60 Industrial fatty alcohols other than derived from fatty substances of animal or vegetable origin . . . . . . . . . . . . . . . . . . 0 5,527 

6110.12.10 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of

Kashmir goats, wholly of cashmere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,030 16,921 

2204.21.50 Wine other than Tokay (not carbonated), not over 14% alcohol, in containers not over 2 liters . . . . . . . . . . . . . . . . . . 9,443 12,970 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,062,373 12,846,016 21

Other 299 343 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,361,422 13,189,410 21,9

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-25
A-26

Table A-12

U.S. imports for consumption under ATPA provisions, by source, 2002-04

(1,000 dollars)

Rank Source 2002 2003 2004

Percent

Change

2003-04

1 Colombia . . . . . . . . . . . . . 404,148 2,908,692 3,888,888 33.7

2 Ecuador . . . . . . . . . . . . . . . 177,734 1,553,604 2,747,335 76.8

3 Peru . 381,814 1,279,283 1,602,673 25.3

4 Bolivia 37,119 94,453 120,363 27.4

Total . . . . . . . . . . . . . . . 1,000,816 5,836,032 8,359,258 43.2

Note.—Because of rounding, figures may not add to the totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-13

U.S. imports for consumption of leading imports under ATPA, 2002-04

(1,000 dollars)

HTS No. Description 2002 2003 2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . 119,804 1,434,729 2,2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . . . . . . . . . . . . . . . 66,571 1,556,843 1,77403.11.00 Cathodes and sections of cathodes, of refined copper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248,663 447,368 42710.19.05 Distillate and residual fuel oil (including blends) derived from petroleum or oils from bituminous

minerals, testing under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,263 236,458 

6110.20.20 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of

cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 202,262 

2710.11.25 Naphthas, not motor fuel/blending stock, from petroleum oils/oils from bituminous minerals,

minimum 70 percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,722 174,970 

0603.10.60 Roses, fresh cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,765 204,473 0603.10.80 Cut flowers and flower buds suitable for bouquets, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,302 124,475 6105.10.00 Men’s or boys’ shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 115,382 6109.10.00 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 84,559 

0603.10.70 Chrysanthemums, standard carnations, anthuriums and orchids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,539 98,709 6203.42.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, not

containing 15 percent or more down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 50,922 

0709.20.90 Asparagus, fresh or chilled, not reduced in size, not entered Sept. 15-Nov. 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,589 60,498 7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and

clasps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,704 59,108 

6204.62.40 Women’s or girls’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 0 37,888 

2402.20.80 Cigarettes containing tobacco but not clove, paper-wrapped . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,524 55,271 6106.10.00 Women’s or girls’ blouses and shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 29,743 

7113.19.29 Gold necklaces and neck chains, other than rope or mixed link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,828 42,039 0603.10.30 Miniature (spray) carnations, fresh cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,239 23,213 

1604.14.30 Tunas and skipjack, not in oil, in airtight containers, over 7 kilograms, or over quota . . . . . . . . . . . . . . . . . . . . . . . . . 0 25,474 6110.30.30 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of

man-made fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 17,666 

0804.50.40 Guavas, mangoes, and mangosteens, fresh, if entered during the period from Sept. 1, in

any year, to the following May 31, inclusive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,601 25,078 

7113.19.21 Rope necklaces and neck chains of gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,232 10,791 1701.11.10 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,637 26,083 6908.90.00 Glazed ceramic flags and paving, hearth or wall tiles; glazed ceramic mosaic cubes and the

like, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,323 14,284 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 761,307 5,158,286 7,4

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239,509 677,746 9

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,816 5,836,032 8,

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-27
Table A-14

U.S. imports for consumption under CBERA provisions, by source, 2000-04

(1,000 dollars)

Rank Source 2000 2001 2002 2003 1 Dominican Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 852,294 2,363,324 2,679,342 2,614,736 2 Honduras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252,149 1,670,844 1,989,871 2,175,122 3 Trinidad and Tobago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329,471 753,448 1,173,434 1,410,853 4 Guatemala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264,630 744,157 1,044,628 1,088,930 5 El Salvador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,565 1,008,274 1,144,089 1,185,146 6 Costa Rica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617,142 1,011,454 1,154,516 1,083,025 7 Nicaragua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,555 147,887 212,845 249,015 8 Haiti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,160 158,698 176,509 210,690 9 Jamaica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,459 195,207 194,059 178,939 10 Bahamas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,451 75,811 70,881 87,996 11 Belize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,360 48,519 42,834 41,583 12 Panama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,639 42,254 41,551 40,834 13 St. Kitts-Nevis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,613 29,490 27,305 25,713 14 Guyana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,143 23,769 21,912 16,668 15 St. Lucia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,471 7,225 7,980 5,288 16 Netherlands Antilles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,624 6,043 3,089 2,714 17 Barbados . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,441 12,002 12,357 6,951 18 St. Vincent and Grenadines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,947 2,223 5,514 2,536 19 Dominica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 80 374 2,528 20 British Virgin Islands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 21 66 229 21 Antigua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 152 43 60 22 Aruba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 22 23 69 23 Grenada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,702 7,265 37 3 24 Montserrat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,794,174 8,308,171 10,003,260 10,429,629 

Note.—Because of rounding, figures may not add to totals shown.Source: Compiled from official statistics of the U.S. Department of Commerce.

A-28
Table A-15

U.S. imports for consumption of leading imports under CBERA, 2002-04

(1,000 dollars)

HTS No. Description 2002 2003 6109.10.00 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,093,055 1,195,086 1,6110.20.20 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of

cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485,435 677,858 

2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . . . . . . . . . . . . . . . 609,776 741,541 

6203.42.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, not

containing 15 percent or more down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 863,751 822,045 

2905.11.20 Methanol (methyl alcohol), n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219,876 340,004 6107.11.00 Men’s or boys’ underpants and briefs, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438,609 440,893 

6212.10.90 Brassieres, not containing lace, net, or embroidery, not 70 percent or more silk, whether or

not knitted or crocheted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,518 283,415 

6203.43.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of synthetic fibers,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289,466 343,506 

6204.62.40 Women’s or girls’ trousers, breeches, and shorts, not knitted or crocheted, of cotton,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,408 269,829 

2402.10.80 Cigars, cheroots and cigarillos, each valued 23 cents or over ........................................... 228,526 228,348 6110.30.30 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of

man-made fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,743 183,571 

6108.21.00 Women’s or girls’ briefs and panties, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261,127 219,738 

6115.92.90 Stockings, socks, and other hosiery, not surgical and not containing lace or net, knitted or

crocheted, of cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 157,970 

2710.19.05 Distillate and residual fuel oil (including blends) derived from petroleum or oils from

bituminous minerals, testing under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215,416 160,934 

7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and

clasps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,516 186,333 

2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . 130,900 167,502 6109.90.10 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of man-made fibers . . . . . . . . . . . . . . . . . . . . 173,750 133,081 

1701.11.10 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148,769 128,001 2710.11.25 Naphthas, not motor fuel/blending stock, from petroleum oils/oils from bituminous minerals,

minimum 70 percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,770 66,155 

6205.30.20 Men’s or boys’ shirts, not knitted or crocheted, of manmade fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,140 97,214 0804.30.40 Pineapples, fresh or dried, not reduced in size, in crates or other packages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168,287 194,147 2207.10.60 Undenatured ethyl alcohol for nonbeverage purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,078 74,145 0804.30.20 Pineapples, fresh or dried, not reduced in size, in bulk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 1,188 8536.20.00 Automatic circuit breakers, for a voltage not exceeding 1,000 volts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,141 91,292 6104.62.20 Women’s or girls’ trousers, breeches, and shorts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,467 95,222 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,714,399 7,299,017 8,

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,288,633 3,130,612 2,

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,003,260 10,429,629 10,

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-29
Table A-16

U.S. merchandise trade with European Union,1 by SITC codes (revision 3), 2002-04

(1,000 dollars)

SITC CodeNo. Description 2002 2003 Exports:0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,547,382 3,815,784 4,1771 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,266,472 1,335,127 1,3902 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,509,760 5,481,299 5,723 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,331,411 1,149,193 2,314 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,140 136,202 1245 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,493,206 27,750,994 33,416 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,617,704 7,835,845 8,558

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,856,659 65,320,965 68,848 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,997,442 18,821,855 21,5299 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,807,510 6,490,789 5,895

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,562,685 138,138,053 151,96

Imports:0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,643,423 4,085,757 4,2581 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,779,257 6,592,324 7,002 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,952,295 2,023,675 2,873 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,021,041 10,213,616 13,7434 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490,108 583,676 7695 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,206,951 55,151,837 60,506 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,474,821 23,593,824 28,88

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,766,919 97,247,779 104,82

8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,873,050 30,302,377 34,3139 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,523,920 12,415,615 13,07

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223,731,786 242,210,479 270,248

1 Includes 15 EU countries.

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, “n.e.s.” stands for “not elsewhere specified.”

Source: Compiled from official statistics of the U.S. Department of Commerce.

A-30
Table A-17

Leading exports to the European Union,1 by Schedule B subheading, 2002-04

(1,000 dollars)

Schedule Bsubheading Description 2002 2003 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,080,533 5,816,183 63004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 3,362,003 4,240,570 58803.309880.00

Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind shipments

to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,354,157 3,434,912 3

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,582,910 4,697,531 38411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,472,683 3,231,321 33002.10 Antisera and other blood fractions, and modified immunological products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,317,441 1,831,009 28703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity

over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,135,703 2,072,681 2,

9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 1,624,885 1,690,134 28411.12 Turbojets of a thrust exceeding 25 kN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,799,174 1,642,962 8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,061,125 2,155,578 1

3822.00 Composite diagnostic or laboratory reagents, except pharmaceuticals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,448,520 1,642,517 18708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,731,568 1,387,519 12937.90 Other hormones, their derivatives and structural analogues, including chain modified polypeptides, used

primarily as hormones, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427,177 538,938 1

8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . 445,213 473,019 1

8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,443,327 1,476,196 19018.39 Medical etc. needles n.e.s.o.i., catheters, cannulae and the like; parts and accessories thereof . . . . . . . . . . . . . . . . . 853,552 1,059,515 19021.90 Appliances n.e.s.o.i., worn, carried, or implanted in the body, to compensate for a defect or disability;

parts and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796,069 1,278,701 1

8411.99 Gas turbines parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,125,009 1,095,405 18517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806,702 709,433 1

8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,233,340 912,591 12710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by weight

of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,372 119,081 1

2933.39 Heterocyclic compounds containing an unfused pyridine ring, whether or not hydrogenated, in the structure,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248,821 1,117,360 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity

over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,747,739 2,003,862 

9801.10 Value of repairs or alterations of previously imported articles, repaired or altered prior to exportation from

United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 859,915 901,214 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,844,930 50,271,766 57

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,717,755 87,866,287 94

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,562,685 138,138,053 151

1 Includes 15 EU countries.

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-31
Table A-18

Leading imports from the European Union,1 by HTS subheading, 2002-04

(1,000 dollars)

HTSsubheading Description 2002 2003 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,844,121 16,151,810 1

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 11,238,935 13,860,396 1

8703.24

Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,417,058 14,104,173 

9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported

or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,304,532 7,753,669 

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70

percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,936,875 3,633,302 

2934.99 Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,880,598 6,613,239 

2933.99 Heterocyclic compounds with nitrogen hetero-atom(s) only, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,158,784 3,957,540 9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,417,580 3,745,572 2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by

weight of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,109,453 2,971,733 

8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,269,714 3,223,954 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,545,500 3,348,542 7102.39 Nonindustrial diamonds, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,432,145 2,713,795 9701.10 Paintings, drawings and pastels, executed entirely by hand, framed or not framed . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,927,325 2,195,904 

9018.39 Medical etc. needles n.e.s.o.i., catheters, cannulae and the like; parts and accessories thereof . . . . . . . . . . . . . . . . . . 589,163 1,003,980 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,924,027 2,037,033 2204.21 Wine n.e.s.o.i. of fresh grapes or fortified wine, in containers not over 2 liters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,487,537 1,823,313 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,243,982 1,511,039 3004.39 Medicaments, in measured doses, containing hormones or derivatives/steroids used primarily as

hormones, but not containing antibiotics, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,420,862 1,825,882 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,759,978 1,656,785 

2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,867,032 2,023,416 

3302.10 Mixtures of odoriferous substances and mixtures with a basis of these substances, used in the

food or drink industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,464 929,453 

8411.12 Turbojets of a thrust exceeding 25 kN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,616,552 1,491,197 2203.00 Beer made from malt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,254,003 1,279,237 

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,599,567 1,593,600 9021.50 Pacemakers for stimulating heart muscles ........................................................... 732,075 1,158,830 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,008,862 102,607,393 11

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,722,924 139,603,086 1

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223,731,786 242,210,479 27

1 Includes 15 EU countries.

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”

Source: Compiled from official statistics of the U.S. Department of Commerce.

A-32
Table A-19

U.S. merchandise trade with Canada, by SITC codes (revision 3), 2002-04

(1,000 dollars)

SITC CodeNo. Description 2002 2003 Exports:0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,693,335 8,167,202 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388,755 454,715 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,115,162 4,371,962 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,594,731 3,968,800 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202,761 257,981 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,559,747 16,990,467 16 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,664,276 20,782,720 2

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,008,416 74,275,974 78 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,317,223 15,056,047 

9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,998,696 4,422,738 

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,543,103 148,748,606 16

Imports:0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,010,921 10,961,510 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 896,038 889,857 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,123,750 9,733,277 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,561,267 41,268,537 44 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,322 361,121 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,080,352 13,495,946 16 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,093,387 33,239,217 3

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,390,303 84,176,846 98 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,295,286 14,580,450 19 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,756,276 15,309,344 1

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,517,904 224,016,104 25

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, “n.e.s.” stands for “not elsewhere specified.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-33
Table A-20

Leading exports to Canada, by Schedule B subheading, 2002-04

(1,000 dollars)

Schedule Bsubheading Description 2002 2003 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,286,445 5,192,437 58703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston

engine, cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,727,589 5,181,735 5,

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston

engine, cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,121,944 5,157,224 4,

9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not

identified by kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,207,729 3,538,755 4,

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,088,608 3,957,358 4,8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine,

gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,798,039 3,257,471 3,

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . 3,732,343 3,705,931 3,8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,233,966 2,096,680 2,2711.21 Natural gas, gaseous state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369,068 1,077,503 1,3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,359,727 1,571,861 1,

8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,317,340 1,315,897 1,

8701.20 Road tractors for semi-trailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842,461 1,010,098 1,7606.12 Rectangular plates, sheets and strip, over 0.2 mm thick, of aluminum alloy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900,756 914,910 1,

8704.21 Trucks, n.e.s.o.i., diesel engine, gross vehicle weight not exceeding 5 mt ................................. 832,895 1,134,561 1,8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794,074 792,460 1,8708.39 Brakes and servo-brakes and parts for motor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,073,616 1,074,253 1,08473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,017,821 907,139 1,02710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70

percent by weight of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 656,325 849,784 1

9032.89 Automatic regulating or controlling instruments and apparatus, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,001,802 1,077,048 1,

8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,034,000 999,760 9401.90 Parts of seats (except medical, barbers, dentist, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 649,700 644,512 

2716.00 Electrical energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303,527 715,999 8704.22 Motor vehicles for goods transport n.e.s.o.i., with compression-ignition internal combustion

piston engine, weighing 5 to 20 metric tons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448,709 570,845 

4901.99 Printed books, brochures, leaflets and similar printed matter, other than in single sheets . . . . . . . . . . . . . . . . . . . . . 736,979 772,012 4902.90 Newspapers, etc. appearing less than 4 times per week .............................................. 597,576 750,344 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,133,039 48,266,580 52,3

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,410,064 100,482,026 110,7

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,543,103 148,748,606 163,

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-34
Table A-21

Leading imports from Canada, by HTS subheading, 2002-04

(1,000 dollars)

HTSsubheading Description 2002 2003 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,230,092 26,064,196 3

2711.21 Natural gas, gaseous state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,428,452 18,249,135 12709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,195,903 14,086,365 19801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported

or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,599,634 9,014,921 

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine,

gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,134,225 7,959,664 

4407.10 Coniferous wood sawn or chipped lengthwise, sliced or peeled, of thickness exceeding 6mm . . . . . . . . . . . . . . . . . . . 5,189,480 4,570,189 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,765,859 4,391,893 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,827,607 4,329,341 9999.95 Estimated ”low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,575,721 3,809,534 

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70

percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,996,506 2,558,353 

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,810,250 3,297,211 2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70

percent by weight of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,959,502 2,571,747 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,168,140 2,393,861 

4801.00 Newsprint, in rolls or sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,955,524 2,906,964 8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . 2,836,859 3,161,004 

4802.61 Uncoated paper/paperboard for writing/printing/other graphic purposes n.e.s.o.i., over 10

percent fiber by mechanical process, in rolls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,653,534 1,560,852 

7601.20 Unwrought aluminum alloys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,488,374 1,467,165 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,086,636 2,044,189 

4703.21 Chemical woodpulp, soda or sulfate, other than dissolving grades, semibleached or bleached,

coniferous wood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,238,946 1,399,435 

7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder . . . . . . . . . . . . . . . . . . . . . . . 1,474,471 1,400,684 3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. .................. 830,116 1,322,606 4410.21 Oriented strand board and waferboard, of wood, unworked or not further worked than sanded . . . . . . . . . . . . . . . . 498,998 953,221 

2711.12 Propane, liquefied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 847,754 1,329,489 7601.10 Aluminum, not alloyed, unwrought . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 877,665 1,259,320 4410.29 Oriented strand board and waferboard, of wood, further worked than sanded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 551,092 972,729 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,221,343 123,074,067 13

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,296,561 100,942,037 11

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,517,904 224,016,104 25

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-35
Table A-22

U.S. merchandise trade with Mexico, by SITC codes (revision 3), 2002-04

(1,000 dollars)

SITC CodeNo. Description 2002 2003 Exports:0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,864,800 5,355,649 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,001 106,655 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,092,197 3,350,363 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,237,193 2,827,585 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451,139 372,564 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,443,193 9,544,166 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,396,590 12,288,490 17 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,991,422 35,808,119 38 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,614,073 9,781,618 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,885,475 3,672,889 

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,076,082 83,108,096 9

Imports:0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,517,402 5,247,899 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,623,865 1,738,693 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789,472 782,920 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,552,141 14,746,109 14 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,443 26,406 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,187,978 2,235,183 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,439,156 9,459,428 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,905,602 75,681,179 88 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,283,606 21,295,025 29 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,800,511 5,986,412 

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,121,175 137,199,254 15

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, “n.e.s.” stands for “not elsewhere specified.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-36
Table A-23

Leading exports to Mexico, by Schedule B subheading, 2002-04

(1,000 dollars)

Schedule Bsubheading Description 2002 2003 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by

kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,146,328 3,003,106 3

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70

percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,608,744 1,550,647 2

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,591,787 2,030,302 2

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,427,753 1,622,317 18703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,483,062 1,189,891 1

8408.20 Compression-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792,127 1,052,566 13926.90 Articles of plastics and articles of other materials of headings 3901 to 3914, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,455 1,394,885 1

8538.90 Parts for electrical apparatus for electrical circuits; for electrical control n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 781,692 953,621 18473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,549,774 1,090,401 18703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,370,887 1,065,094 1

8536.90 Electrical apparatus for switching or protecting electrical circuits, n.e.s.o.i. .................................. 778,242 833,699 

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine,

gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619,214 680,201 

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 894,258 813,480 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 868,460 579,350 

1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 836,385 990,093 8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,065 661,835 

7326.90 Articles of iron or steel n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747,845 726,397 8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 640,316 591,504 1005.90 Corn (maize), other than seed .................................................................... 590,305 660,959 

8540.11 Cathode-ray television picture tubes, color, including monitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,374,258 860,434 3923.10 Boxes, cases, crates and similar articles, of plastics .................................................... 572,358 587,198 4819.10 Cartons, boxes and cases corrugated paper and paperboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517,470 522,806 8503.00 Parts of electric motors, generators and sets ......................................................... 503,159 540,426 9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 395,395 465,186 5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319,403 426,776 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,389,740 24,893,173 27

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,686,341 58,214,923 65

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,076,082 83,108,096 93

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-37
Table A-24

Leading imports from Mexico, by HTS subheading, 2002-04

(1,000 dollars)

HTSsubheading Description 2002 2003 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,489,963 13,629,630 18528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,713,232 5,202,728 7

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,588,372 5,837,537 5

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,504,118 5,619,590 5

9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported

or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,848,199 3,953,642 4

8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,666,169 3,198,490 48544.30 Insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships . . . . . . . . . . . . . . . . . . . 4,384,409 4,220,588 48704.21 Trucks, n.e.s.o.i., diesel engine, gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,974,339 2,781,912 9401.90 Parts of seats (except medical, barbers, dentist, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,739,617 3,172,250 38704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross vehicle weight not

exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,268,506 3,652,196 

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,632,676 1,826,850 2

8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,657,487 1,463,742 28708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,541,891 1,745,652 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,235,979 1,354,805 9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,512,339 1,558,083 8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,365,453 1,566,000 1

6203.42 Men’s or boys’ trousers, bib and brace overalls, breeches and shorts not knitted or crocheted,

of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,517,404 1,481,010 

8537.10 Boards, panels, consoles, other components incorporating apparatus for control or distribution

of electricity, for voltage not exceeding 1,000 volts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,211,250 1,437,350 1

8527.21 Radiobroadcast receivers for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,482,887 1,436,115 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. .............................. 930,786 631,210 9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 855,114 1,096,934 

9032.89 Automatic regulating or controlling instruments and apparatus, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,213,570 1,166,702 6204.62 Women’s or girls’ trousers, etc., of cotton, not knitted or crocheted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,292,223 1,117,563 8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831,722 881,083 

8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,659,050 1,680,313 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,116,753 71,711,975 80

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,004,422 65,487,279 74

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,121,175 137,199,254 154

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-38
Table A-25

U.S. merchandise trade with China, by SITC codes (revision 3), 2002-04

(1,000 dollars)

SITC codeNo. Description 2002 2003 Exports:0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534,982 790,805 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,364 11,488 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,265,599 6,726,992 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,753 129,627 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,940 102,630 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,914,450 3,561,020 46 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,259,138 1,933,410 2

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,603,836 11,289,215 138 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,619,253 1,894,113 2

9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228,676 267,637 

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,552,991 26,706,938 32

Imports:0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,502,654 1,995,720 21 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,866 31,721 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634,057 773,219 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355,344 456,724 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,327 9,456 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,426,268 2,984,683 36 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,330,110 16,161,703 2

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,018,538 60,478,484 86

8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,076,653 66,917,133 779 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,407,847 1,811,300 2

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,795,665 151,620,144 19

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, “n.e.s.” stands for “not elsewhere specified.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-39
Table A-26

Leading exports to China, by Schedule B subheading, 2002-04

(1,000 dollars)

Schedule Bsubheading Description 2002 2003 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 888,741 2,830,335 2,8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 824,260 1,556,009 1,8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,075,855 2,167,638 1,5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,986 733,080 1,

8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309,500 291,403 1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,941 35,262 

7404.00 Copper waste and scrap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228,518 407,516 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,673 418,071 7204.49 Ferrous waste and scrap, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,078 365,318 4101.50 Whole raw bovine or equine hides and skins, weight exceeding 16 kilograms, fresh, pickled or

preserved but not tanned or further prepared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276,717 304,037 

7602.00 Aluminum waste and scrap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169,610 234,219 3100.00 Fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 656,767 457,034 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,876 265,611 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,642 263,178 8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,426 182,763 2902.50 Styrene (vinylbenzene; phenylethylene) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,551 200,506 8411.99 Gas turbines parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,019 22,961 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245,789 176,226 8543.89 Electrical machines and apparatus, having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,082 87,915 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by

kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,695 166,611 

4707.10 Waste and scrap of unbleached kraft paper or paperboard or of corrugated paper or

paperboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,307 178,948 

7204.29 Waste and scrap, of non-stainless alloy steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,372 171,509 8456.91 Machine tools n.e.s.o.i. for dry etching patterns on semiconductor materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,830 37,073 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,830 187,957 

2905.31 Ethylene glycol (ethanediol) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,604 108,634 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,677,671 11,849,815 13,

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,875,320 14,857,123 19

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,552,991 26,706,938 32,

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-40
Table A-27

Leading imports from China, by HTS subheading, 2002-04

(1,000 dollars)

HTSsubheading Description 2002 2003 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,634,222 7,275,003 11,08473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,069,230 6,075,213 8,68471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a

CPU, keyboard and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 632,162 4,158,253 7,7

8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,960,057 2,875,724 5,56403.99 Footwear not covering the ankles, with outer soles of rubber or plastics or composition leather

and uppers of leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,299,542 4,620,638 4,8

8521.90 Video recording or reproducing apparatus, whether or not including a video tuner, other than

magnetic tape-type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,171,815 2,463,196 3,0

9503.90 Other toys and models, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,444,947 2,437,545 2,3

6402.99 Footwear with outer soles and uppers of rubber or plastics n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,271,769 2,167,679 2,3

9403.60 Wooden furniture, other than of a kind used in the bedroom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,576,196 1,868,817 2,2

8525.40 Still image video cameras and other video camera recorders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 667,404 1,379,631 2,1

8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,696,379 1,721,964 2,19504.10 Video games used with television receiver and parts and accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,571,375 2,108,226 1,9

9505.10 Articles for Christmas festivities and parts and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,643,258 1,724,489 1,89504.90 Game machines except coin-operated; board games; mah-jog; dominoes; dice . . . . . . . . . . . . . . . . . . . . . . . . . . 918,831 1,408,447 1,7

8504.40 Static converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,100,336 1,299,404 1,6

9999.95 Estimated ”low valued” shipments .............................................................. 957,360 1,229,871 1,6

4202.92 Trunks, cases, bags and similar containers, with outer surface of plastic sheeting or of textile

materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,127,589 1,331,661 1,6

6403.91 Footwear covering the ankles, with outer soles and uppers of rubber or plastics, excluding

waterproof footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,437,693 1,466,649 1,6

9403.20 Metal furniture, other than of a kind used in offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,016,671 1,278,779 1,4

8520.90 Other sound recording or reproducing equipment, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,690 286,459 1,4

8472.90 Automatic banknote dispensers, coin-sorting, pencil-sharpening, perforating or stapling, and

other office machines, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359,599 1,256,808 1,3

8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453,187 625,884 1,29403.50 Wooden furniture, except seats, of a kind used in the bedroom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 819,099 1,166,360 1,28517.11 Line telephone sets with cordless handsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,304,451 1,348,000 1,29503.41 Stuffed toys, representing animals or non-human creatures, and parts and accessories . . . . . . . . . . . . . . . . . . . . 1,169,238 1,192,307 1,2

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,409,101 54,767,005 73,3

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,386,565 96,853,139 122,7

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,795,665 151,620,144 196,1

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-41
A-42

Table A-28

U.S. merchandise trade with Japan, by SITC code (revision 3), 2002-04

(1,000 dollars)

SITC Code

No. Description 2002 2003 2004

Percent change

2003-04

Exports:

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,728,331 8,018,240 7,341,523 -8.4

1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,337,552 1,344,165 1,290,983 -4.0

2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . 2,847,895 2,913,597 3,033,508 4.1

3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . 563,084 582,076 890,923 53.1

4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . 68,174 69,598 75,097 7.9

5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . 6,309,818 6,614,001 7,466,115 12.9

6 Manufactured goods classified chiefly by material . . . . . . . . . . 2,345,609 2,329,240 2,577,212 10.6

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . 18,413,723 18,401,743 18,708,425 1.7

8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . 7,288,865 7,197,891 7,524,430 4.5

9 Commodities and transactions not classified elsewhere

in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,369,963 1,391,601 1,584,545 13.9

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . 48,273,014 48,862,153 50,492,760 3.3

Imports:

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327,584 363,891 381,878 4.9

1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,004 58,808 56,467 -4.0

2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . 244,413 233,239 282,715 21.2

3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . 201,675 209,700 206,614 -1.5

4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . 23,321 23,682 25,654 8.3

5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . 6,912,821 7,933,164 8,186,376 3.2

6 Manufactured goods classified chiefly by material . . . . . . . . . . 6,463,473 6,582,939 7,508,907 14.1

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . 92,103,559 89,238,622 97,605,383 9.4

8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . 11,286,632 10,211,700 11,394,373 11.6

9 Commodities and transactions not classified elsewhere

in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,626,993 3,629,310 3,886,333 7.1

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . 121,262,473 118,485,056 129,534,698 9.3

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, “n.e.s.” stands for “not elsewhere specified.”

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-29

Leading exports to Japan, by Schedule B subheading, 2002-04

(1,000 dollars)

Schedule Bsubheading Description 2002 2003 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,605,282 2,585,362 2,1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,554,014 1,599,289 1

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,834,826 1,844,288 1,1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831,161 957,493 1,8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,552,185 1,421,596 1,09801.10 Value of repairs or alterations of previously imported articles, repaired or altered prior to

exportation from United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 669,943 713,690 

2402.20 Cigarettes containing tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 904,546 928,838 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 889,520 801,109 78411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658,523 596,764 

8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392,994 573,694 2844.20 Uranium and its compounds enriched in u235; plutonium and its compounds ................................ 878,348 783,288 

9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by

kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556,259 550,423 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769,118 613,488 9018.39 Medical etc. needles n.e.s.o.i., catheters, cannulae and the like; parts and accessories thereof . . . . . . . . . . . . . . . . . . . 471,260 527,668 1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483,574 478,270 4403.20 Coniferous wood in the rough, not treated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428,366 427,699 9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . 434,684 466,013 

0203.19 Meat of swine, n.e.s.o.i, fresh or chilled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391,024 387,219 48471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542,925 473,361 3822.00 Composite diagnostic or laboratory reagents, except pharmaceuticals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363,653 376,082 2701.12 Bituminous coal, whether or not pulverized, but not agglomerated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,930 690 

8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266,650 309,029 

8543.89 Electrical machines and apparatus, having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,603 162,322 

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 249,935 241,070 8456.91 Machine tools n.e.s.o.i. for dry etching patterns on semiconductor materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,261 117,634 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,014,584 17,936,380 19,

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,258,430 30,925,773 31,2

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,273,014 48,862,153 50,

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-43
Table A-30

Leading imports from Japan, by HTS subheading, 2002-04

(1,000 dollars)

HTSsubheading Description 2002 2003 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston

engine, cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,742,046 15,729,733 18

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston

engine, cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,449,907 15,203,935 1

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,076,799 3,491,260 3

8525.40 Still image video cameras and other video camera recorders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,120,016 3,365,198 38708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,370,928 2,598,681 3

8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,650,331 2,031,014 2

9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported

or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,241,948 2,245,718 2

8703.22 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine

over 1,000 but over 1,500 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,169,478 1,191,134 2

8429.52 Self-propelled mechanical shovels and excavators, with a 360-degree revolving superstructure . . . . . . . . . . . . . . . . . 645,424 928,009 18542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,558,102 1,306,104 19999.95 Estimated ”low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,314,300 1,317,317 18471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,487,732 1,375,114 3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 1,177,984 1,324,876 8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,036,169 1,129,966 1

8473.40

Parts and accessories for duplicating, addressing, stapling, and other office machines,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,980 874,451 

8528.21 Video monitors, color . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513,796 742,953 18528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391,295 738,143 18472.90 Automatic banknote dispensers, coin-sorting, pencil-sharpening, perforating or stapling, and

other office machines, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201,467 881,231 1

8701.90 Tractors, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625,061 740,766 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,542,385 1,209,652 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 863,573 911,147 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,016,245 841,011 8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a

CPU keyboard and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 651,545 800,229 

8711.50 Motorcycles and cycles, with an auxiliary motor, with a reciprocating internal combustion

piston engine, cylinder capacity over 800 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723,811 561,871 

8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768,287 629,499 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,428,610 62,169,012 65

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,833,863 56,316,044 63

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,262,473 118,485,056 129

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-44
A-45

Table A-31

U.S. merchandise trade with Taiwan, by SITC codes (revision 3), 2002-04

(1,000 dollars)

SITC Code

No. Description 2002 2003 2004

Percent change

2003-04

Exports:

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,198,477 1,282,519 1,419,860 10.7

1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,638 75,513 64,794 -14.2

2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . 1,122,059 1,129,097 1,097,461 -2.8

3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . 56,028 91,869 117,137 27.5

4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . 18,585 18,306 7,477 -59.2

5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . 2,279,928 2,474,515 3,484,875 40.8

6 Manufactured goods classified chiefly by material ......... 750,519 882,954 917,210 3.9

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . 8,986,532 8,080,104 10,164,562 25.8

8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . 1,945,412 1,765,622 2,697,632 52.8

9 Commodities and transactions not classified elsewhere

in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357,003 310,087 371,667 19.9

Total all exports commodities . . . . . . . . . . . . . . . . . . . . 16,786,180 16,110,588 20,342,675 26.3

Imports:

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237,091 235,053 254,641 8.3

1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,598 9,958 10,351 4.0

2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . 137,875 123,678 154,508 24.9

3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . 38,336 89,645 287,345 220.5

4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . 5,004 4,350 5,289 21.6

5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . 618,055 702,087 812,122 15.7

6 Manufactured goods classified chiefly by material . . . . . . . . . 4,204,811 4,230,633 5,418,881 28.1

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . 19,888,596 18,851,290 20,208,848 7.2

8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . 5,919,235 6,245,621 6,327,104 1.3

9 Commodities and transactions not classified elsewhere

in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 995,680 997,351 982,874 -1.5

Total all imports commodities . . . . . . . . . . . . . . . . . . . . 32,054,281 31,489,663 34,461,963 9.4

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specified.”

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-32

Leading exports to Taiwan, by Schedule B subheading, 2002-04

(1,000 dollars)

Schedule Bsubheading Description 2002 2003 8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,181,052 2,258,464 1,8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,008,348 859,551 1,8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 628,514 445,455 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213,349 682,378 1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473,464 511,763 

8456.91 Machine tools n.e.s.o.i. for dry etching patterns on semiconductor materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166,774 124,550 9030.82 Other instruments and apparatus for measuring or checking semiconductor wafers or devices .................. 273,704 246,042 

9031.41 Optical instruments for inspecting semiconductor wafers or devices, or photomasks or reticles

used in manufacturing these items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232,974 136,140 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. ........................................................... 397,251 358,713 

2902.11 Cyclohexane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,021 16,512 

8543.89 Electrical machines and apparatus, having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254,712 88,031 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414,655 419,314 8479.90 Parts of machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . 230,185 121,671 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by

kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213,457 198,169 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,673 235,116 2902.50 Styrene (vinylbenzene; phenylethylene) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,083 40,035 2902.43 Para-xylene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,259 130,369 2926.10 Acrylonitrile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,008 87,393 1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,160 136,371 8464.20 Grinding or polishing machines for working stone, ceramics, concrete, asbestos-cement or like

mineral materials or for cold working glass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,137 68,521 

9030.90 Parts, accessories of instruments, apparatus for measuring, checking, detecting electrical

quantities, or ionizing radiations, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,601 95,074 

9001.90 Lenses, except contact and spectacle, prisms, mirrors and other optical elements, unmounted,

other than of glass not optically worked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,055 116,201 

8543.11 Ion implanters for doping semiconductor materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,875 38,796 

5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,649 117,023 9306.90 Bombs, grenades, torpedoes, mines, missiles, etc., and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,228 168,177 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,745,187 7,699,828 10,

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,040,993 8,410,759 9

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,786,180 16,110,588 20,

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-46
Table A-33

Leading imports from Taiwan, by HTS subheading, 2002-04

(1,000 dollars)

HTSsubheading Description 2002 2003 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,252,651 2,279,611 2,68542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,207,780 1,924,768 2,38471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU,

keyboard and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,407,820 2,165,675 1,2

8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658,887 841,171 1,08523.90 Prepared magnetic media for sound or similar recording, unrecorded, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607,000 902,971 1,0

8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 979,701 1,061,791 98471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 951,432 846,750 7

8528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,699 219,628 69801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or

returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581,106 594,438 5

9999.95 Estimated ”low valued” shipments ................................................................. 390,666 384,843 4

7318.15 Threaded screws and bolts, of iron or steel, n.e.s.o.i., whether or not with their nuts or washers . . . . . . . . . . . . . . . . . 261,865 306,812 4

8534.00 Printed circuits ................................................................................ 385,676 350,584 4

7318.14 Self-tapping screws of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257,472 304,022 36110.30 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of

man-made fibers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348,169 364,471 3

8528.30 Video projectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,312 151,032 38526.91 Radio navigational aid apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206,411 286,628 38504.40 Static converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,518 239,441 2

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. ................................ 233,979 246,912 28481.80 Taps, cocks, valves and similar appliances, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,922 256,816 2

8512.20 Electrical lighting or visual signaling equipment, for use on cycles or motor vehicles, except for

use on bicycles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230,295 232,628 2

8525.10 Transmission apparatus for radio or television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429,353 428,239 2

9506.91 Gymnasium, playground or other exercise articles and equipment; parts and accessories thereof . . . . . . . . . . . . . . . . 261,372 254,856 28465.91 Sawing machines for working wood, cork, bone, hard rubber, hard plastics, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246,198 232,340 2

8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,334 115,138 2

7318.16 Nuts, threaded, of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,294 191,550 2

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,733,911 15,183,113 16,3

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,320,370 16,306,550 18,

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,054,281 31,489,663 34,4

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-47
A-48

Table A-34

U.S. merchandise trade with Korea, by SITC code (revision 3), 2002-04

(1,000 dollars)

SITC Code

No. Description 2002 2003 2004

Percent change

2003-04

Exports:

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,964,138 2,232,449 1,864,871 -16.5

1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,679 91,026 59,116 -35.1

2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . 1,772,683 1,972,313 2,200,541 11.6

3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . 228,036 318,318 436,767 37.2

4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . 79,114 46,044 27,398 -40.5

5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . 2,750,203 3,333,499 4,458,716 33.8

6 Manufactured goods classified chiefly by material ............ 898,948 986,691 1,102,452 11.7

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . 11,012,536 11,177,486 11,897,899 6.4

8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . 1,922,166 1,947,944 2,547,989 30.8

9 Commodities and transactions not classified elsewhere

in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422,222 418,929 398,729 -4.8

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . 21,150,725 22,524,700 24,994,480 11.0

Imports:

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186,869 189,010 206,467 9.2

1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,709 52,783 64,715 22.6

2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . 173,916 218,392 245,658 12.5

3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . 272,331 280,880 549,354 95.6

4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . 1,335 872 443 -49.2

5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . 867,198 897,719 1,194,069 33.0

6 Manufactured goods classified chiefly by material . . . . . . . . . . . . 3,400,778 3,278,754 4,172,082 27.2

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . 25,743,756 27,818,955 34,241,539 23.1

8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . 3,829,153 3,476,707 3,528,613 1.5

9 Commodities and transactions not classified elsewhere

in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 764,765 715,499 861,238 20.4

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . 35,283,810 36,929,570 45,064,177 22.0

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, “n.e.s.” stands for “not elsewhere specified.”

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-35

Leading exports to Korea, by Schedule B subheading, 2002-04

(1,000 dollars)

Schedule Bsubheading Description 2002 2003 8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,405,580 3,297,215 2,88802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,537,565 1,073,863 1,1

8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502,911 430,066 78479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395,156 424,542 61005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,590 44,377 52926.10 Acrylonitrile .................................................................................. 207,432 273,117 4

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416,094 351,540 47204.49 Ferrous waste and scrap, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167,008 250,403 3

8456.91 Machine tools n.e.s.o.i. for dry etching patterns on semiconductor materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,408 56,368 31201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247,679 282,550 24101.50 Whole raw bovine or equine hides and skins, weight exceeding 16 kilograms, fresh, pickled or

preserved but not tanned or further prepared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,897 288,304 2

9001.90 Lenses, except contact and spectacle, prisms, mirrors and other optical elements, unmounted,

other than of glass not optically worked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,334 142,594 2

9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by

kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,249 215,880 2

2902.30 Toluene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 99,368 2

2902.43 Para-xylene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,418 90,989 28708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,911 101,964 21001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187,214 207,642 22902.50 Styrene (vinylbenzene; phenylethylene) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,794 99,977 28543.89 Electrical machines and apparatus, having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,215 293,905 22902.44 Mixed xylene isomers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,632 128,140 2

8542.90 Parts for electronic integrated circuits and microassemblies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,909 174,349 9030.82 Other instruments and apparatus for measuring or checking semiconductor wafers or devices . . . . . . . . . . . . . . . . . . 26,661 45,277 

8411.99 Gas turbines parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,525 92,531 18517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,199 120,274 18803.90 Parts of balloons, dirigibles, gliders, other aircraft, spacecraft, satellites, and spacecraft launch

vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313,690 312,606 1Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,986,093 8,897,839 11,0

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,164,632 13,626,861 13,9

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,150,725 22,524,700 24,9

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-49
Table A-36

Leading imports from Korea, by HTS subheading, 2002-04

(1,000 dollars)

HTSsubheading Description 2002 2003 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,318,331 5,582,714 8,08703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,830,673 5,418,198 7,0

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,938,542 2,782,309 3,18703.24 Passenger motor vehicles with spark-ignition internal- combustion reciprocating piston engine, cylinder

capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,238,054 1,718,135 2,4

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,773,537 1,490,724 2,8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,508,663 998,497 1,08528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214,718 521,699 79801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . . . . . 574,372 512,378 68542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396,417 443,380 58703.22 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine over

1,000 but over 1,500 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774,063 774,769 4

8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,672 221,071 42710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent

by weight of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,853 157,251 3

4011.10 New pneumatic tires, of rubber, of a kind used on motor cars, including station wagons and racing cars . . . . . . . . . . 251,921 279,674 36110.30 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of

man-made fibers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439,217 360,137 3

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184,510 205,108 3

8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534,418 370,019 38521.90 Video recording or reproducing apparatus, whether or not including a video tuner, other than

magnetic tape-type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417,058 262,542 2

8429.52 Self-propelled mechanical shovels and excavators, with a 360-degree revolving superstructure . . . . . . . . . . . . . . . . . 96,647 96,656 2

8528.21 Video monitors, color . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,517 234,180 28509.10 Vacuum cleaners, with self-contained electric motor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,500 144,905 29999.95 Estimated ”low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,746 173,722 28415.10 Air conditioning machines, window or wall types, self-contained, with motor-driven fan and elements for

changing the temperature/humidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257,273 240,055 2

4011.20 New pneumatic tires, of rubber, of a kind used on buses or trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158,162 164,813 28516.50 Microwave ovens of a kind used for domestic purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451,329 352,650 24810.19 Writing/graphic paper and paperboard, coated with kaolin, not over 10 fiber obtained by a mechanical

process, in sheets, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,126 192,362 2

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,037,319 23,697,947 30,6

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,246,491 13,231,623 14,4

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,283,810 36,929,570 45,0

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.”Source: Compiled from official statistics of the U.S. Department of Commerce.

A-50