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 3700 July 2004

www.usitc.gov

The Year in Trade 2003

Operation of the Trade Agreements Program

55th Report
This report was principally prepared by

Country and Regional Analysis Division

Arona M. Butcher, Chief

Diane Manifold, Project Leader

Laurie--Ann Agama, Nannette Christ, William Greene, Joanne E. Guth,

Thomas Jennings, Magdolna Kornis, Selmawit Legesse, Walker Pollard,

James Stamps, Edward C. Wilson, and S. Michael Youssef

Office of the General Counsel

William W. Gearhart

Office of Tariff Affairs and Trade Agreements

Terry O’Brien and Daniel Shepherdson

Office of Investigations

Mary Messer

Office of Unfair Import Investigations

Jeffrey Whieldon

Office of Industries

Kim Freund

Office of Information Systems

Barbara V. Bobbitt

Supporting assistance was provided by:

Cecelia Allen

Interns:

Thomas O’Connor and Patrick Kane
iii

Table of Contents

Page

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

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

Summary of trade agreements activities in 2003 1-2 ..............

Administration of U.S. laws and regulations 1-5 ................

World Trade Organization 1-7 .............................

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

Asia Pacific Economic Cooperation 1-8 .......................

U.S. Free Trade Agreements 1-8 ............................

Bilateral trade relations 1-8 ................................

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

Canada 1-9 .........................................

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

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

China 1-10 ...........................................

Taiwan 1-10 ..........................................

Korea 1-10 ..........................................

Brazil 1-11 ...........................................

International economic environment in 2003 1-11 ................

United States 1-11 .....................................

Canada 1-13 .........................................

Europe 1-13 ..........................................

Latin America 1-14 ....................................

Asia 1-14 ............................................

Japan 1-15 ..........................................

China 1-15 ...........................................

Africa 1-15 ..........................................

U.S. merchandise trade in 2003 1-16 .........................

U.S. balance of payments position 1-19 ........................

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

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

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

Adjustment assistance 2-3 .................................

Assistance to workers 2-5 ..............................

Trade adjustment assistance to farmers 2-6 .................

Assistance to firms and industries 2-7 .....................

Laws against unfair trade practices 2-8 .........................

Section 301 investigations 2-8 ..............................

Active cases in 2003 2-8 ...............................

Special 301 2-10 ......................................
iv

Table of Contents—Continued

Page

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

Antidumping investigations 2-11 .............................

Countervailing duty investigations 2-12 ........................

Reviews of outstanding antidumping and countervailing

duty orders/suspension agreements 2-13 ...................

Section 337 Investigations 2-14 ..............................

Other import administration laws and programs 2-16 ...............

Tariff preference programs 2-16 .............................

Generalized System of Preferences 2-16 ....................

African Growth and Opportunity Act 2-18 ..................

Andean Trade Preference Act 2-22 ........................

Caribbean Basin Economic Recovery Act 2-24 ...............

U.S. textile and apparel trade program 2-25 .....................

Uruguay Round Agreement on Textiles and Clothing 2-25 .........

U.S. quota activity. 2-26 ....................................

China 2-28 ...........................................

Cambodia and Vietnam 2-28 ............................

Quota availability in 2004 2-29 ..............................

Tariff rates disputes 2-30 ...................................

Egypt 2-30 ...........................................

Free trade agreements with Chile and Singapore 2-30 ............

Proposed free trade agreements 2-32 .........................

Trade preference programs 2-33 .............................

U.S. textile and apparel trade in 2003 2-34 ....................

Chapter 3. Selected Trade Developments in the WTO,

OECD, and APEC ....................................... 3-1

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

Doha Trade Negotiations and Cancun Ministerial Conference 3-1 . .

Negotiating developments before Cancun 3-2 ..............

TRIPS decision on pharmaceutical imports 3-3 ...........

Cancun Ministerial Conference 3-4 .......................

Negotiating developments after Cancun 3-6 ................

Agriculture 3-7 ...................................

Cotton initiative 3-7 ................................

Market access 3-8 .................................

Singapore issues 3-8 ...............................

Procedures 3-8 ...................................

Selected activities in the WTO 3-8 ...........................

Regular Ministerial matters 3-9 ..........................
v

Table of Contents—Continued

Page

Chapter 3. Selected Trade Developments in the WTO,

OECD, and APEC—Continued

General Council reviews 3-9 ............................

Waivers of WTO obligations 3-9 .........................

Trade in textiles and clothing 3-10 .........................

Technical assistance, policy coordination, and developing

countries 3-10 .....................................

Sixth session of the WTO Ministerial Conference 3-11 .........

Membership 3-11 .....................................

Dispute settlement 3-11 .................................

Participation 3-11 ..................................

Subject matter under covered agreements 3-13 ...........

Dispute-settlement panels 3-16 ........................

Appeals 3-16 .....................................

Implementation: Reasonable period of time 3-17 ..........

Implementation: Compliance determination 3-17 ..........

Retaliation (Suspension of concessions) 3-17 ..............

Mutually agreed solutions 3-18 ........................

Organization for Economic Cooperation and Development 3-18 ......

Doha Multilateral Trade Negotiations 3-18 .....................

Work in progress 3-19 .....................................

Other business 3-20 .......................................

APEC 3-20 ................................................

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

North American Free Trade Agreement 4-1 .....................

U.S. Trade with NAFTA partners 4-1 .........................

Free Trade Commission 4-3 ................................

Commission for Labor Cooperation 4-5 .......................

Commission for Environmental Cooperation 4-7 ................

Dispute settlement 4-10 ....................................

U.S.-Morocco Free Trade Agreement 4-11 .......................

Free Trade Area of the Americas 4-15 ..........................

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

Dominican Republic 4-17 ...................................

U.S.-Australia Free Trade Agreement 4-18 .......................

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

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

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

Table of Contents—Continued

Page

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

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

Developments during 2003 5-2 ..........................

Agricultural biotechnology 5-4 ..............................

EU moratorium 5-4 ...................................

Background 5-4 ...................................

Developments during 2003 5-5 .......................

EU regulations 5-6 ....................................

Canada 5-8 ..............................................

Softwood lumber 5-9 .....................................

Background 5-9 ......................................

2003 NAFTA Review Panel decisions 5-10 ..................

Antidumping determination 5-10 .......................

Countervailing duty determination 5-11 .................

Injury determination 5-11 ............................

2003 WTO Review Panel decisions 5-12 ....................

Antidumping determination 5-12 .......................

Countervailing duty determination 5-12 .................

Injury determination 5-13 ............................

Mexico 5-13 ...............................................

Restrictions on agricultural imports from the United States 5-13 .....

Telecommunications services 5-16 ............................

Japan 5-17 ...............................................

U.S.-Japan Economic Partnership for Growth 5-17 ...............

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

U.S. assessment of China’s WTO compliance in 2003 5-20 ........

Agriculture 5-21 ..........................................

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

Intellectual property rights 5-22 ..............................

Taiwan 5-23 ...............................................

Intellectual property rights protection 5-23 ......................

Korea 5-23 ................................................

Intellectual property rights protection 5-24 ......................

Telecommunications 5-25 ...................................

Brazil 5-26 ................................................
vii

Table of Contents—Continued

Page

Figures

1-1. U.S. merchandise trade with the world, by product sectors, 2003 1-17

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

major trading partners, 2003 1-18 ...........................

Tables

1-1. Summary of 2003 trade agreements activities 1-2 ..............

1-2. Comparative economic indicators of the United States and

specified major trading partners, projections, 2003-04 1-12 ....

1-3. Summary of U.S. international transactions, 2002-03 1-19 .........

2-1. Trade Adjustment Assistance, comparison of prior and

current programs 2-4 .................................

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

program, FY 2002 and FY 2003 2-6 ......................

2-3. Benefits and services provided under the trade adjustment

assistance program, FY 2002 and FY 2003 2-6 .............

2-4. Active 301 cases in 2003 2-9 ...............................

2-5. Antidumping duty orders that became effective during 2003 2-12 ...

2-6. Countervailing duty orders that became effective during 2003 2-13 . .

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

the world, 2003 2-19 ..................................

2-8. U.S. imports for consumption and imports under GSP from

leading beneficiaries and total, 2003 2-20 ..................

2-9. U.S. imports for consumption from ATPA countries, 2001-03 2-23 ...

2-10. U.S. imports for consumption from CBERA countries, 2001-03 2-24 . .

2-11. Agreement on textiles and clothing: Stages, share of integrated

trade, and increase in quota growth rates 2-26 ..............

2-12. Textiles and apparel: U.S. imports from trading partners with

which the United States had quotas in 2003 2-27 .............

2-13. U.S. imports of textiles and apparel from countries in FTA

negotiations with the United States and their share of total

U.S. imports from these countries, 2003, and the share of

these countries’ total exports accounted for by textiles and

apparel, 2002 2-32 ....................................

2-14. Textiles and apparel: U.S. imports from Caribbean Basin,

Sub-Saharan African, and Andean countries, total and

duty-free imports under special U.S. trade programs, 2003 2-34 .

3-1. WTO membership in 2003 3-12 .............................

3-2. WTO observers in 2003 3-13 ...............................

3-3. WTO members involved in more than one dispute-settlement

consultation, January 1, 1995, to October 31, 2003 3-14 .......

3-4. WTO dispute settlement, by covered agreements, from

January 1995 through October 2003 3-15 ..................
viii

Table of Contents—Continued

Page

Tables

4-1. Status of U.S. FTA negotiations, as of December 31, 2003 4-2 .....

4-2. U.S. trade with NAFTA partners, 2001-03 4-3 ..................

4-3. Active Chapter 14 files through 2003 4-9 .....................

4-4. Factual records published in 2003 under chapter 15 4-9 .........

4-5. NAFTA Chapter 19 binational panels, active reviews in 2003 4-12 ...

Appendix

Statistical tables

A-1. Antidumping cases active in 2003, by USITC investigation number A-3

A-2. Antidumping duty orders in effect as of December 31, 2003 A-5 ...

A-3. Countervailing duty cases active in 2003, by USITC investigation

number A-11 .........................................

A-4. Countervailing duty orders in effect as of December 31, 2003 A-12 . .

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

agreements completed in 2003, by date of completion A-14 ....

A-6. Section 337 investigations and related proceedings completed

by the U.S. International Trade Commission during 2003

and those pending on December 31, 2003 A-15 ..............

A-7. Outstanding Section 337 exclusion orders as of

December 31, 2003 A-17 ...............................

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

2003 A-20 ...........................................

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

treatment, by import categories under the Harmonized Tariff

Schedule, 2003 A-21 ...................................

A-10. U.S. imports for consumption of leading imports under

AGOA, 2001-03 A-22 ..................................

A-11. U.S. imports for consumption under AGOA provisions,

by source, 2001-03 A-23 ................................

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

by source, 2001-03 A-24 ................................

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

ATPA, 2001-03 A-25 ...................................

A-14. U.S. imports for consumption of leading imports under

CBERA, 2001-03 A-26 ..................................

A-15. U.S. imports for consumption under CBERA provisions,

by source, 1999-2003 A-27 ..............................

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

numbers (revision 3), 2001-03 A-28 .......................
ix

Table of Contents—Continued

Page

Appendix

Statistical tables—Continued

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

numbers, 2001-03 A-29 .................................

A-18. Leading imports from the European Union, by HTS numbers,

2001-03 A-30 .........................................

A-19. U.S. merchandise trade with Canada, by SITC numbers

(revision 3), 2001-03 A-32 ...............................

A-20. Leading exports to Canada, by Schedule B numbers, 2001-03 A-33 . .

A-21. Leading imports from Canada, by HTS numbers, 2001-03 A-34 .....

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

(revision 3), 2001-03 A-35 ...............................

A-23. Leading exports to Mexico, by Schedule B numbers, 2001-03 A-36 . .

A-24. Leading imports from Mexico, by HTS numbers, 2001-03 A-37 ......

A-25. U.S. merchandise trade with Japan, by SITC numbers

(revision 3), 2001-03 A-38 ...............................

A-26. Leading exports to Japan, by Schedule B numbers, 2001-03 A-39 ...

A-27. Leading imports from Japan, by HTS numbers, 2001-03 A-40 .......

A-28. U.S. merchandise trade with China, by SITC numbers

(revision 3), 2001-03 A-41 ...............................

A-29. Leading exports to China, by Schedule B numbers, 2001-03 A-42 ...

A-30 . Leading imports from China, by HTS numbers, 2001-03 A-43 .......

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

(revision 3), 2001-03 A-44 ...............................

A-32. Leading exports to Taiwan, by Schedule B numbers, 2001-03 A-45 . .

A-33. Leading imports from Taiwan, by HTS numbers, 2001-03 A-46 ......

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

(revision 3), 2001-03 A-47 ...............................

A-35. Leading exports to Korea, by Schedule B numbers, 2001-03 A-48 ...

A-36. Leading imports from Korea, by HTS numbers, 2001-03 A-49 .......

A-37. U.S. merchandise trade with Brazil, by SITC numbers

(revision 3), 2001-03 A-50 ...............................

A-38. Leading exports to Brazil, by Schedule B numbers, 2001-03 A-51 ....

A-39. Leading imports from Brazil, by HTS numbers, 2001-03 A-52 .......

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The Year in Trade 2003

Operation of the Trade Agreements Program

55th Report
xi

List of Frequently Used Abbreviations

and Acronyms

AD Antidumping

AGOA African Growth and Opportunity Act

APEC Asia Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

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

CTS Council for Trade in Services

CVD Countervailing Duty

DDA Doha Development Agenda

DSB 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

PNTR Permanent Normal Trade Relations

OECD Organization for Economic Cooperation and Development

SITC Standard Industrial Trade Classification

SLA Softwood Lumber Agreement

SSA Sub-Saharan Africa

TAA Trade Adjustment Assistance

TRIMs Trade-Related Investment Measures

TRIPs Trade-Related Aspects of Intellectual Property Rights

TRQ Tariff Rate Quota

URAA Uruguay Round Agreements Act

USITC United States International Trade Commission

USTR United States Trade Representative

WTO World Trade Organization

1-1

CHAPTER 1

Introduction

Purpose and Organization of the Report

This report is the 55th 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 in calendar year 2003. 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 events and trade agreements activities during the

year as discussed in more detail elsewhere in the report, and provides an overview of

the international economic environment in 2003. Chapter 2 discusses the

administration of U.S. trade laws and regulations. Chapter 3focuses 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 discusses free trade agreements (FTAs) in which the United States

negotiated or was negotiating during 2003. This chapter provides a summary table of

U.S. FTAs as of December 31, 2003 and provides information on selected 2003 FTA

agreements and negotiations including North American Free Trade Agreement

(NAFTA), the U.S.-Morocco FTA, Free Trade Area of the America FTAA, and the

U.S.-Australia FTA. Chapter 5 focuses on selected trade-related activities between the

United States and its major trading partners—the European Union (EU), Canada,

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

contains a statistical appendix.

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

Summary of Trade Agreements Activities in 2003

In 2003, 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, including the NAFTA; and bilateral developments with

major trading partners. Highlights of key trade agreements activities, including some

which are discussed 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.

Table 1-1

Summary of 2003 trade agreements activities

Date Event

January

2 The U.S. Department of State announces a settlement with Hughes Electronics

Corporation and Boeing Satellite Systems Inc. for illegally providing satellite and

rocket technology in 1995 to China in violation of export control laws.

8 The WTO Dispute Settlement Body establishes dispute-settlement panel for

Canada’s complaint against U.S. antidumping duties on imports of softwood

lumber from Canada.

13 The United States and the Southern African Customs Union (SACU) initiate free

trade agreement (FTA) negotiations. SACU includes Botswana, Lesotho,

Namibia, South Africa, and Swaziland.

13 The President announces the designation of Afghanistan as a beneficiary

developing country under the U.S. Generalized System of Preferences (GSP).

15 President Bush requests Congress to extend the African Growth and Opportunity

Act (AGOA) beyond its current 2008 expiration date.

16 The WTO Appellate Body upholds panel ruling that the U.S. Continued Dumping

and Subsidy Offset Act of 2000 (the so-called Byrd Amendment) violates WTO

rules. The Byrd Amendment provides for the U.S. Government to distribute the

antidumping and anti-subsidy duties to the U.S. companies that filed or

supported the original petition.

21 The United States and Morocco initiate FTA negotiations.

21 The United States and Mexico sign an agreement that protects Mexican poultry

farmers from temporarily reduced import barriers under the North American

Free Trade Agreement (NAFTA).

February

7 The United States and India agree to expand high-technology trade.

17 Legislation is introduced in the U.S. Congress to provide Haiti duty-free access to

the U.S. textile market.

18 The WTO establishes a dispute-settlement panel requested by Brazil to consider

whether the U.S. support program for subsidies to producers of upland cotton

violates WTO rules.

21 U.S.-Morocco FTA negotiations begin.
1-3

Table 1-1—Continued

Summary of 2003 trade agreements activities

March

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

consider whether certain Canadian measures relating to the export of wheat

and treatment of imported grain are inconsistent with WTO rules.

17 The United States and Canada reach an agreement for Canada to end

exporting subsidized dairy products to the United States and limit subsidized

dairy exports to third countries.

26 A WTO Appellate Body ruling upholds its previous finding against Japan’s

restriction on U.S. apples.

27 The United States and Canada agree on a rail border plan that further

enhances security at their borders.

April

14 A WTO dispute-settlement panel rejects Japan’s complaints against U.S.

antidumping duties imposed on Japanese corrosion-resistant flat carbon steel

products.

19 The WTO establishes a dispute-settlement panel to decide whether an expedited

U.S. sunset review of antidumping measures regarding oil country tubular goods

from Argentina is consistent with WTO antidumping agreements.

17 The United States and Vietnam sign a textile agreement that increases the cap

on U.S. textile imports from Vietnam to approximately $1.7 billion.

May

1 United States lifts economic sanctions against Angola.

6 President Bush signs U.S.-Singapore FTA.

7 The WTO Dispute Settlement Body (DSB) authorizes the EU to impose

countermeasures on U.S. products valued at a maximum $4.043 billion per

year as compensation in the dispute over the U.S. Foreign Sales

Corporations/Extraterritorial Income Exclusion Act of 2000.

12 President Bush announces that the United States and Bahrain will negotiate an

FTA to begin in 2004.

13 The United States requests WTO consultations with the EU, the first step in the

WTO dispute-settlement process, over the EU’s moratorium on new approvals of

agricultural biotechnology products.

22 The United States and Russia agree on the parameters for market access for

U.S. poultry, pork, and beef when Russia joins the WTO.

29 The WTO panal upholds in part U.S. determination that the Canadian stumpage

program (fees imposed on foresters for cutting on public lands) subsidizes

Canada’s lumber industry.
1-4

Table 1-1—Continued

Summary of 2003 trade agreements activities

June

2 The United States, Canada, and Mexico agree to expand NAFTA’s

transparency in dispute-settlement procedures and revise chapter 11

investor-state arbitration provision.

6 The U.S.-Chile FTA is signed.

10 The Bush administration announced that the African Growth and Opportunity

Act trade preferences program needs to be extended beyond 2008 and

enhanced to encourage more U.S. investment and trade with the sub-Saharan

African countries.

11 A WTO dispute-settlement panel formed at the request of the EU, Japan, South

Korea, China, Switzerland, Norway, New Zealand, and Brazil finds that the

U.S. section 201 safeguard measures on certain steel products was inconsistent

in certan respects with obligation under WTO Safeguard Agreement.

July

11 The United States appeals a WTO dispute-settlement panel ruling that Section

201 steel safeguard duties are inconsistent with U.S. WTO obligations.

15 President Bush submits legislation for bilateral FTAs with Singapore and Chile.

26 The WTO Appellate Body upholds-panel finding that Japan’s ban on imports of

apples from the United States has no scientific basis.

21 The U.S. Department of Agriculture announces the end of import restrictions on

certain Canadian beef that were put in place on May 20, 2003, owing to the

discovery of BSB.

28 The United States imposes economic sanctions against Burma.

31 Two day consultations begin with respect to Mexico’s antidumping measures on

U.S. beef and long-grain white rice.

August

13 A NAFTA dispute-settlement panel supports the United States’ claim that

Canadian softwood lumber imports are subsidized. However, the panel

remands to the U.S. Department of Commerce (DOC) regarding the method by

which DOC calculated margins.

13 The United States and European Union present a joint proposal for a framework

agreement on agriculture during the Doha mutilateral trade negotiations.

28 President Bush signs Singapore and Chile FTA legislation.

29 WTO members agree to exempt developing countries from TRIPS patent

provisions for HIV/AIDS, tuberculosis, and malaria drugs.

September

2 The United States requests Saudi Arabia to lower its import tariffs and to open

its market for insurance, financial services, telecommunication, and audio-visual

services.

21 The United States appeals a WTO panel decision on a U.S. final countervailing

duty determination against Canadian softwood lumber imports.
1-5

Table 1-1—Continued

Summary of 2003 trade agreements activities

October

2 The WTO establishes a dispute-settlement panel to examine the EU’s rules on the

protection of trademarks and geographical indications for agricultural products

and foodstuffs in response to a request from the United States and Australia.

November

7 The WTO establishes a dispute-settlement panel to review a U.S. challenge to

Mexico’s antidumping order on long-grain white rice.

10 The WTO Appellate Body upholds the overall panel ruling that U.S. Section 201

safeguard measures on certain steel products are inconsistent with U.S.

obligations under the WTO Safeguard Agreement.

18 USTR notifies Congress of the intent to initiate negotiations for an FTA with a

bloc of Andean countries (Colombia, Peru, Ecuador and Bolivia).

December

3 President Bush announces that the United States will terminate Section 201

safeguard duties on steel imports.

5 The United States Trade Representative and Australian Trade Minister announce

extension of U.S.-Australia FTA negotiations.

17 The United States announces the conclusion of an FTA with El Salvador,

Guatemala, Honduras and Nicaragua (CAFTA). Details of some textile

provisions, rules on appealing investment decisions and the structure of a

citizen-based petition process for environmental issues remain open.

30 President Bush designates Angola as eligible for AGOA, while terminating the

AGOA eligibility designation of Eritrea and the Central African Republic from .

30 President Bush declares the U.S.-Chile and U.S.-Singapore FTAs will enter into

effect on January 2, 2004.

31 Mexico’s Congress votes to continue a consumer tax on soft drinks, which

contain high-fructose corn syrup (HFCS), extending barrier to HFCS imports

from the United States.

Sources: Compiled by the Commission from information from the World Trade Organization, Washington Trade Daily, Inside U.S. Trade, and press releases from the Office of the U.S. Trade Representative, U.S. Department of Commerce, the State Department, and the White House.

Administration of U.S. Laws and Regulations

The following developments in U.S. trade programs occurred during the year 2003:

S During 2003, all three U.S. global safeguard measures in effect at the

beginning the year were either terminated by the President (certain steel

products) or allowed to expire (steel wire rod and steel line pipe). No new U.S.

safeguard measures were applied during 2003 under any of the U.S.

safeguard laws administered by the Commission, and no petitions were

pending at year-end 2003. However, one Commission China safeguard

recommendation was pending before the President at year-end 2003.
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S The U.S. Department of Labor instituted 3,561 Trade Adjustment Assistance

(TAA) investigations during FY 2003. The FY 2003 figure represents an

increase from the 2,404 TAA petitions instituted during FY 2002. The number

of completed TAA cases increased from 2,806 cases in FY 2002 to 3,583

cases in FY 2003, covering 196,112 workers. A new program, the TAA for

Farmers, administered by the Department of Agriculture was established.

Which provides technical assistance and cash benefits to eligible producers of

raw agricultural commodities.

The U.S. Department of Commerce (Commerce) certified 207 firms as eligible

to applyfor trade adjustment assistance during FY 2003, an increase from the

107 firms certified in the previous year.

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

Department of Commerce, 15 new antidumping orders and six new

countervailing duty orders were issued in 2003.

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

investigations involving complex technologies, particularly in the computer

and telecommunications field. During 2003, there were 37 active section 337

investigation proceedings, 19 of which were instituted in 2003. The

Commission completed a total of 18 investigations and ancillary proceedings

under section 337 in 2003, including one combined enforcement and

advisory opinion proceeding relating to a previously concluded investigation.

Three exclusion orders and four cease-and-desist orders were issued during

2003.

S The GSP program expired on September 30, 2001, and was extended

retroactively through December 31, 2006. During 2003, several actions were

taken by USTR including the extension of the deadline for submission of

petitions for the 2003 Annual GSP Product and Country Eligibility Practices

Review to September 3, 2003 and the initiation of a review to consider the

designation of Algeria as a beneficiary developing country under the GSP.

S On December 30, 2003, the President approved the continued designation of

36 sub-Saharan countries as eligible for tariff preferences under AGOA. The

President further determined that Angola should be designated as an AGOA

beneficiary country. Two countries, Eritrea and the Central African Republic,

did not continue to meet AGOA eligibility requirements and were dropped

from the list of eligible countries.

S The Andean Trade Preference Act (ATPA) was amended by the Andean

Trade Promotion and Drug Eradication Act (ATPDEA), as part of the Trade

Act of 2002. ATPDEA extended the program to December 31, 2006, and

expanded it to provide duty-free treatment for certain products previously

excluded from eligibility for duty-free treatment, including certain textiles and

apparel, footwear, petroleum and petroleum derivatives, watches and watch

parts, and certain tuna packaged in foil or other flexible airtight packages
1-7

(not cans). U.S. imports from ATPA countries increased 21 percent to $11.6

billion in 2003 from $9.6 billion in 2002.

S In 2003, eligible imports 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).

Unlike the ATPA program, the CBERA program has no statutory termination

date. The United States-Caribbean Basin Trade Partnership Act (CBTPA),

enacted on May 18, 2000, expanded the coverage of preferential tariff

treatment to several articles previously excluded under the original CBERA,

including certain apparel. CBERA imports increased to $10.4 billion in 2003

from $10.0 billion in 2002.

S In 2003, the United States had quotas on textiles and apparel from 46

countries, which accounted for 79 percent of U.S. imports of such goods by

value. As required by theWTO Agreement on Textiles and Clothing (ATC), the

United States is scheduled to eliminate all remaining quotas on such goods

from 37 WTO countries on January 1, 2005.

World Trade Organization

In 2003, multilateral trade negotiations under the Doha Development Agenda (DDA)

worked toward a mid-term review of progress at theWTO Fifth Ministerial Conference

held in September 2003 in Cancun, Mexico. Instead of setting specific terms or

“negotiating modalities” at the conference for individual negotiating groups to allow

them to move toward the scheduled January 2005 conclusion, the conference reached

an impasse, initially over agricultural subsidy reductions and later over new

trade-related issues known as the “Singapore issues.” For the remaining months in

2003, the WTO Director-General and General Council chairman held consultations

with members on how to resume negotiations under the DDA.

Organization for Economic Cooperation and

Development

In 2003, the OECD Trade Committee worked largely to support the multilateral trade

negotiations being held under the WTO Doha Development Agenda, both leading up

to and following the WTO Fifth Ministerial Conference.
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Asia Pacific Economic Cooperation

At the 2003 APEC Ministerial held in Bangkok, Thailand, APEC ministers discussed

how to reinvigorate the WTO Doha negotiations, how to address regional security

challenges and infectious diseases. The ministers recognized APEC’s capacity building

contributions and reaffirmed the importance of WTO capacity building activities in the

future. APEC ministers took actions in other areas regarding structural reform; trade

and investment liberalization and facilitation; Individual and Collective Action Plans;

Pathfinder initiatives; APEC Business-Government Dialogues; Economic and Technical

Cooperation and Capacity Building; intellectual property rights, cybersecurity,

electronic commerce; e-learning; Severe Acute Respiratory Syndrome (SARs); social

safety nets and workforce retraining; financial architecture; economic research and

analysis; and small- and medium-sized enterprises (SMEs) and micro-enterprises.

U.S. Free Trade Agreements

The United States participated in five operative free trade agreements (FTAs) as of

December 31, 2003: the U.S.-Israel FTA of 1985, the NAFTA of 1994; the U.S.-Jordan

FTA of 2000; the U.S.-Chile FTA of 2003, and the U.S.-Singapore FTA of 2003. In

2003, the President notified Congress of his intention to launch FTA negotiations with

Australia and Bahrain. In addition, the Administration launched negotiations with the

countries of the South African Customs Union (Botswana, Lesotho, Namibia, South

Africa and Swaziland). Also, in 2003, the United States continued the negotiations

begun in 1994 with 34 other democratic countries of the Western Hemisphere toward

the creation of the Free Trade Area of the Americas (FTAA).

Bilateral Trade Relations

European Union

Two important long-term trade disputes remained on the U.S.-EU trade agenda in

2003 and were still unresolved at the end of the year: U.S. tax policy on foreign sales

corporations; and the EU biotech moratorium. The WTO dispute-settlement process

continued in response to EU complaints and WTO rulings that U.S. special tax

treatment of foreign sales corporations (FSCs), and the replacement U.S. tax policy,

constitute a prohibited export subsidy. In May 2003 the WTO Dispute Settlement Body

authorized the EU to take countermeasures valued at $4.043 billion per year, in line

with the arbitration report issued in August 2002. In December 2003, the EU adopted

a regulation to impose an additional tariff of 5 percent ad valorem on U.S. products on

March 1, 2004, followed by automatic 1 percentage point increases in each month

thereafter until March 1, 2005, or until the United States complies with theWTO ruling.

The EU’s de facto moratorium on agricultural biotechnology approvals continued

during 2003, disrupting U.S. exports of corn and threatening U.S. exports of
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soybeans. In May, the United States filed a WTO dispute-settlement complaint against

the biotech moratorium. The United States is also monitoring two regulations the EU

approved in 2003 on the traceability and labeling of biotech products and on biotech

food and feed.

Canada

In 2003, Canada remained the second largest U.S. trading partner surpassed only by

the European Union. NAFTA is a three party agreement which includes Mexico. The

U.S.-Canada bilateral trading relationship is largely governed by NAFTA. On

October 7, 2003, the NAFTA Free Trade Commission agreed to pursue further

liberalization of the NAFTA rules of origin, and also agreed to commence a study of

the most favored nation (MFN) tariffs of each of the parties. In the case of the NAFTA

rules of origin, the NAFTA provides for preferential tariff and trade treatment of goods

of U.S., Canadian, and Mexican origin, pending successful completion of the general

NAFTA rules of origin requirements as outlined in section 202 of the North American

Free Trade Implementation Act. Since the NAFTA entered into force, the parties have

modified many of the rules of origin, conforming them to tariff classification changes,

thus making them less restrictive and less burdensome to administer.With respect to the

tariff harmonization study, since 1994 the parties have undertaken four separate

tariff-cut acceleration exercises, speeding the elimination of tariffs on several hundred

line items that have covered billions of dollars in trade. Under NAFTA article 308, the

three countries harmonized at zero tariff rates for computers/computer parts, local

area network equipment, and semiconductors. The U.S. and Canada have indicated

an intent to consult with their national industries to determine whether more products

might be covered by this exercise.

Mexico

Mexico maintained its position in 2003 as the third-largest U.S. trading partner after

the European Union and Canada, and before China. Agricultural imports from the

United Sates and their possible adverse effects on Mexican farming interests, as

perceived by Mexico, continued to be an important issue in U.S.-Mexican trade

relations. The year 2003 brought no major changes with respect to some

long-standing bilateral economic concerns, including bilateral trade in sweeteners,

and U.S. implementation of NAFTA cross-border trucking provisions.

Japan

The main forum for discussion of U.S.-Japan trade issues in 2003 was the U.S.

Economic Partnership for Growth. The purpose of the partnership, launched in 2001,

is to promote economic growth and open markets by focusing on sectoral and

cross-sectoral issues related to regulatory and competition policy. In 2003, the United

States submitted reform recommendations to Japan under the U.S.-Japan Regulatory

Reform and Competition Policy Initiative. The recommendations focused on areas such
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as telecommunications, information technologies, medical, energy, and competition

policy. There were also bilateral discussions in the Investment Initiative, the Financial

Dialogue and the Trade Forum.

China

The principal focus of the U.S.-China trade relationship in 2003 was China’s

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

agriculture, services, enforcement of intellectual property rights, transparency of

government regulations, and certain value-added tax policies. Other issues during the

year included U.S. proceedings under two separate safeguard mechanisms

established in China’s WTO accession agreement: the China-specific safeguard

mechanism and the special textile safeguard mechanism.

Taiwan

During 2003, Taiwan continued to make significant progress in a number of IPR areas,

especially in IPR-related enforcement actions. An Integrated Enforcement Task Force

(IEFT) was created during 2003 to join forces with the Joint Optical Disk Enforcement

Tasks Force (JODE) to crack down on optical disc media piracy. JODE inspected over

1,000 factories during the year and IEFT made between 300-400 inspections per

month. Taiwan’s enforcement authorities, in cooperation with Microsoft, also

conducted raids that led to arrests against criminal syndicates suspected of producing,

marketing, and distributing counterfeit software. Taiwan’s Intellectual Property Office

has proposed a registration system to simplify power of attorney requirements in

Taiwan. However, piracy is considered to be high and Taiwan remained on USTR’s

Priority Watch List in for problems associated with protecting intellectual property

rights in 2003. Even though the legislative Yuan passed an amendment to the copyright

law that made intellectual property violations a public crime, Taiwan still lacks an

effective copyright law.

Korea

U.S.-Korean trade relations in 2003 reflected the continued relaxation of trade

frictions in recent years. The two countries meet regularly to discuss bilateral trade

issues. Significant bilateral trade issues between the United States and Korea during

2003 included intellectual property rights protection and telecommunications.

USTR conducted an out-of-cycle Special 301 Review relating to IPR protection in the fall

of 2003, based on concerns expressed in the Special 301 Report issued in May 2003.

The United States continued to express concerns that Korea is inclined to mandate

telecommunications technology standards in Korea rather than allow market forces to

determine successful technologies. Korea has delayed mandating such standards

while consulting with the United States and WTO bodies.
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Brazil

Brazil continued to participate in the Southern Common Market (Mercosur) and in the

ongoing negotiations for the Free Trade Area of the Americas (FTAA). A major

bilateral issue in 2003 was Brazil’s approval process for biotechnology imports, which

remains an obstacle to trade in this area. Another issue is deficencies in Brazil’s

enforcement of intellectual property rights, despite some actions towards addressing

U.S. concerns.

International Economic Environment in 2003

Following a hesitant recovery in 2002, the world economy grew at 3.2 percent in 2003

compared to 3.0 percent in 2002. The recovery was supported by the strengthening of

consumer and investment spending and by accommodative monetary and fiscal

policies.3

Table 1-2 shows comparative indicators of the United States and selected U.S. trading

partners for 2003 and estimates for 2004, according to the OECD and the

International Monetary Fund (IMF). In the OECD area, a recovery took hold led by

strong growth in North America, Asia, and several EU countries. The OECD forecast

for 2004 and 2005 is one of sustained growth and progressive recovery in the United

States, Europe, and Asia, combined with low inflation and a gradual reduction in

unemployment. Real GDP grew by 3.0 percent for the total OECD area. World trade

is projected to grow 4.0 percent in 2003.4

United States

Among the developed economies, the U.S. economy fared relatively well in 2003,

growing by 3.1 percent. The IMF projects faster growth in the United States in 2004.

Moreover, the Council of Economic Advisers noted that the U.S. economy continues to

display characteristics favorable to long-term growth. Productivity remains strong,

and inflation remains low and stable. The pace of growth is expected to be slow

initially; following growth of 3.1 percent in 2003, the Council forecasts growth rates of

U.S. real GDP at 4.0 percent in 2004 and 3.4 percent in 2005. Consumer prices rose

by 1.9 percent in 2003. The unemployment rate was 6.0 percent in 2003.5 Also, the

Federal Reserve Board of Governors, in its February 2004 monetary policy report to

the Congress, said that the economic expansion will continue at a brisk pace in 2004.

The Board based this view on reports of plans for stronger capital spending and

widespread economic activity across the regions. Reviewing economic expansion in

the United States during 2003, the Board said that “accommodative financial

3 The 2003 economic statistics in this section are presented as actual but could be subject to revision.

The 2004 statistics are projected by the IMF, OECD, and CEA.

4 OECD, “Making the Most of the Recovery, and the Table of Summary of Projections,” Economic

Outlook, vol. 2003/2, no.74, Dec. 2003.

5 Economic Report of the President, February 2004, p. 98, table 3-1.
Table 1-2

Comparative economic indicators of the United States and specified major trading partners, projections, 2003-

Real GDP Inflation rates1

Unemployment

rates2

Governments’

budget balances3

Goods & 

trade b

Country 2003 2004 2003 2004 2003 2004 2003 2004 2003 

Percent change from previous period Percent of GDP Billion dollars 

Major traders:

United States . . . . . . . . . . . 3.1 4.6 2.3 1.7 6.0 5.5 -4.9 -5.1 –496.5 Canada . . . . . . . . . . . . . . . 1.7 2.6 2.7 1.4 7.8 7.8 1.0 0.7 36.9 Japan . . . . . . . . . . . . . . . . 2.7 3.4 -0.2 -0.2 5.3 5.2 -7.4 -6.8 60.5 Germany . . . . . . . . . . . . . . 0.0 1.4 0.9 0.8 8.9 9.1 -4.1 -3.7 95.9 United Kingdom . . . . . . . . 2.3 3.5 2.8 2.6 5.0 4.9 -2.9 -2.9 -57.7 France . . . . . . . . . . . . . . . . 0.2 1.6 2.0 1.4 9.6 9.8 -4.0 -3.7 19.5 Italy . . . . . . . . . . . . . . . . . . 0.5 1.6 2.7 2.0 8.9 8.9 -2.7 -2.9 2.2 Euro area . . . . . . . . . . . . . 0.4 1.7 1.9 1.7 9.1 8.9 -2.7 -2.6 169.1 Mexico 1.5 3.6 4.5 4.3 3.0 3.0 (5) (5) -11.7 

Total OECD . . . . . . . . 2.0 3.0 1.8 1.4 7.1 7.0 -3.8 -3.8 -249.4 

China . . . . . . . . . . . . . . . . 9.1 8.5 1.2 3.5 (5) (5) -2.9 -2.8 (5) Hong Kong . . . . . . . . . . . . 3.3 5.5 -2.6 -0.5 7.9 6.4 -3.6 -3.0 20.0 Korea, Rep. of . . . . . . . . . . 2.7 4.7 3.5 3.7 3.4 3.3 3.5 4.0 7.2 Singapore . . . . . . . . . . . . . 1.1 5.0 0.5 1.2 4.7 4.2 4.1 6.7 (5) 

Taiwan . . . . . . . . . . . . . . . 3.2 4.9 -0.3 0.7 5.0 5.0 -4.4 -2.5 9.8 Brazil . . . . . . . . . . . . . . . . 0.5 3.0 10.0 7.0 (5) (5) -4.0 -3.0 (5) Russia . . . . . . . . . . . . . . . . 6.3 5.0 13.0 11.0 (5) (5) 1.0 0.5 (5) 

1 GDP deflator, private consumption deflators and/or retail prices percent change from previous year.2 Percentage of total labor force.3 Financial balances as a percentage of nominal GDP.4 Surplus (+), deficit (-) given as a percentage of GDP.5 Not available.

Note.–2003 data are actual but might be subject to revisions and 2004 data are projections of the IMF and OECD; however, GDP, inflation, unem

trade balance for the United States in 2003 are actual. N/A= not available. Column does not add to total due to the omission of other OECD memSource: OECD, World Economic Outlook, vol. 74, Dec. 2003/2 Annex table 1; IMF, World Economic Outlook, Apr. 2004; and official statistics of 

Commerce.
1-13

market conditions, including higher equity prices, narrower risk spreads bonds, and

eased standards on business loans, also seemed supportive of economic expansion.”6

Recently published data by the Bureau of Economic Analysis (BEA) of the Department

of Commerce also show that the U.S. economy grew at a strong pace in 2003, while

unemployment and core inflation rates remained relatively low in 2003. U.S. real GDP

grew at annual rates of 8.2 percent in the third quarter and 4.1 percent in the fourth

quarter. GDP increased 3.1 percent overall in 2003. The major contributors to the

increase in real GDP in 2003 were personal consumption expenditures which

increased 3.1 percent, gross private domestic investment which increased by 4.1

percent after declining 1.2 percent in 2002, and an upturn in exports.7 Productivity

played a major role in sparking growth. Productivity in the manufacturing sector

increased 4.3 percent and in durable goods manufacturing productivity grew 6.7

percent.8 The strong annual productivity gains have played a key role in absorbing

wage increases in recent years, thus keeping inflation rates low.

Canada

In Canada the economy grew 1.7 percent in 2003 and is expected to grow by 2.6

percent in 2004, according to the IMF, with the outlook largely dependent on U.S.

growth and on Canada’s trade and financial linkages with the United States. The

economic slowdown in 2003 was attributed in part to the sharp appreciation of the

Canadian dollar exchange rate and a decline in meat exports due to the discovery of

bovine spongiform encephalopathy (BSE, commonly called “mad cow” disease) and

to the health crisis involving Severe Acute Respiratory Syndrome (SARs). The

appreciation of the Canadian dollar weakened exports and strengthened imports.

SARs restricted tourism and the discovery of BSE reduced beef exports. Household

spending remained relatively robust supported by low interest rates, and fiscal policy

easing. Economic activity is expected to increase in 2004, supported by economic

strengthening in the United States and easier monetary conditions, following the Bank

of Canada’s lowering official interest rates in mid-2003. The current account surplus

was 1.9 percent of GDP in 2003.

Europe

In the euro area, economic projections by the OECD and the IMF forecast a deeper

and more prolonged slowdown, but show tentative signs of a turnaround. GDP grew

by a meager 0.5 percent in 2003.9 Modest growth since late 2001 has been led

6 “Monetary Policy Report to the Congress,” submitted on Feb. 11, 2004, Federal Reserve Bulletin, at

www.federalreserve.gov/boarddocs/hh/2004/february/ReportSection1.htm.

7 U.S. Department of Commerce, “Gross Domestic Product: Fourth Quarter 2003,” BEA 04-04,

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

8 U.S. Department of Labor, Bureau of Labor Statistics, USDL 04-119, Productivity and Costs,

Preliminary Fourth Quarter and Annual Averages for 2003, found at http://www.bls.gov/lpc/.

9 OECD, Economic Outlook, and IMF World Economic Outlook, Sept. 2003 and IMF World

Economic Outlook, Apr. 2004, table 13.
1-14

by slowly rising exports but also reflects sluggish domestic demand across much of the

region.

The appreciation of the euro in effective terms may have contributed to the 2003

downturn by adversely affecting the trade balance and profit margins of trading

sectors. Exports of goods slowed sharply reflecting weaker global demand and the

appreciation of the euro. The fall in imports growth reflected the downturn in domestic

demand. As exports declined more than imports, the trade surplus declined. Although

monetary policy has been eased considerably since the start of 2003, the appreciation

of the euro has taken back most of the resulting demand stimulus of reduced interest

rates. Nevertheless, divergences in economic developments in individual euro-area

economies persist across the region, reflecting differences in the impact of recent

global shocks, from higher oil prices and weaker world trade, differences in fiscal

pressures, and underlying structural conditions.

Latin America

According to the IMF, a tentative economic recovery is emerging in Latin America,

although to different degrees among countries. The upturn depends on the global

economic recovery, increased exports, substantial exchange rate depreciation, and

improved economic and political fundamentals in some regions.

For the Western Hemisphere, GDP grew by 1.7 percent in 2003. Inflation was 10.6

percent in 2003. The current account surplus was 0.2 percent of GDP in 2003. In

Mexico real GDP grew by 1.5 percent 2003 A strong recovery in exports to the United

States and a pick-up in investment helping the economic recovery. Access to

international capital markets on favorable terms increased foreign investment inflows

and eased downward pressures on exchange rates. Strong capital inflows reflect the

impact of the North American Free Trade Agreement (NAFTA) on direct investment.

The current account deficit reached about 1.9 percent of GDP in 2003. Mexico’s

consumer price inflation in 2003 was 4.5 percent.10

Asia

In Asia, economic activity picked up markedly in 2003, with industrial production and

exports rebounding. According to the IMF published reports, because of a pickup in

domestic demand supported by macroeconomic policies, regional GDP grew by 7.2

percent in 2003 and is projected to grow 6.8 percent in 2004. However, the outlook

depends to a large extent on growth in the United States and Europe; a loss of

momentum in the Information Technology (IT) sector; and also on the political situation

in the Middle East, which has resulted in an increase in oil prices. Most countries retain

access to international capital markets. However, greater foreign exchange-rate

flexibility is required to reduce the risk of international financial crisis, make domestic

growth less dependent on global business cycles, and help to resolve global

imbalances.

10 IMF World Economic Outlook, Vol. 2005/No. V December April 2004, table 1-6.
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Japan

In Japan, the economic recovery in the first half of 2003 was underpinned by a low

level of inventories, an and increase in business investment and exports. Japan’s real

GDP grew 2.7 percent in 2003 and is projected to grow 1.8 percent in 2004. The low

level of inventories stimulated increased production and the low yen value boosted

exports. Japan’s growth is supported by rising domestic demand and investment. Final

domestic demand grew 2.0 percent in 2003 following a decline of 0.2 percent in the

previous year. Gross fixed investment rose 4.4 percent in 2003 but was projected to

increase at a slower rate in 2004.11 Despite increased investment and public

spending, deflation persisted reaching 0.2 percent when measured by consumer

prices, and 2.5 percent when measured by the GDP deflator. The unemployment rate

remained historically high at 5.3 percent in 2003.

China

In China, real GDP grew about 8.4 percent in 2003, and is expected to continue

growing after a slowdown attributable to outbreaks of SARs. The strong growth has

been driven by domestic demand and by investment. Export growth, however, was

accompanied by a stronger growth in imports. As a consequence, the contribution of

net exports to output has been small and has led to a fall in the current account surplus.

The current account surplus as a percent of GDP declined to 1.9 percent in 2003 and is

expected to decline to 0.6 percent in 2004. However, overall activity remains strong

led by buoyant private consumption and strong public investment. Business capital

spending has emerged as a new driver of growth. Investment has been particularly

strong in automobiles, iron and steel, metallurgy, textiles, and high-tech industries.

China’s near-term vulnerability to external shocks is limited both by its high level of

foreign reserves and by strong inflows of foreign direct investment. The key economic

challenge, which has become more urgent with China’s entry into the World Trade

Organization, remains strengthening of the banking sector, which despite recent loan

transfers to asset management companies, continues to be burdened by high levels of

non-performing loans.12

Africa

The IMF reported GDP growth in sub-Saharan Africa at 4.1 percent in 2003 and

projected growth at 5.4 percent in 2004, underpinned by favorable developments in

non-oil commodity prices, as well as debt relief under the heavily indebted poor

countries (HIPC) initiative. Improved macroeconomic policies in some countries also

played a crucial role. However, external current account deficits in many countries in

11 Ibid., pp. 23-25; and OECD Economic Outlook, 2003/2, no.74, Dec., pp. 41-43, “Japan:

Demand” and output table, financial indicators, and demand and output tables.

12 Ibid., p. 33.
1-16

sub-SaharanAfrica remain relatively high, reflecting in part high debt levels, low rates

of savings and low per capita incomes and structural impediments to economic

diversification.13

U.S. Merchandise Trade in 2003

In 2003, the United States ranked as the world’s largest merchandise exporter and

importer, followed by Germany and Japan. U.S. merchandise exports (based on U.S.

Census data) were $724.0 billion in 2003, compared with merchandise exports of

$693.1 billion in 2002; merchandise imports were $1,259.7 billion, up from $1,161.4

billion in 2002. The U.S. merchandise trade deficit with the world was $535.7 billion in

2003, up from $468.3 billion in 2002. The merchandial trade deficit was modestly

offset by a services trade surplus of $28.2 billion in 2003. This services trade surplus is

projected to decreased to $9.2 billion in 2004. The majority of U.S. exports consisted

of capital goods, which accounted for 40.5 percent of total U.S. exports in 2003,

followed by industrial supplies (23.9 percent); consumer goods (12.4 percent);

automotive vehicles (11.1 percent); foods, feeds, and beverages (7.6 percent); and all

other goods (4.5 percent). The majority of U.S. imports consisted of consumer goods,

which accounted for 26.5 percent of total U.S. imports, followed by industrial supplies

(25.1 percent); capital goods (23.5 percent); automotive vehicles (16.7 percent); and

food, feeds, and beverages (4.4 percent). The category “all other goods” accounted

for 3.8 percent of total U.S. imports (see figure 1-1).

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

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

partners are highlighted in the appendix. In 2003, U.S. trade with NAFTA countries

accounted for about 32.0 percent of total U.S. exports and imports. NAFTA accounted

for $95.0 billion, or 17.7 percent of the total U.S. trade deficit of $537.7 billion in

2003. Canada accounted for $54.6 billion, or 10.2 percent of the total U.S. deficit,

and Mexico accounted for $40.6 billion or 7.6 percent of the total U.S. deficit. The U.S.

trade deficit with China was $124.0 billion followed by the EU at $94.3 billion, Japan

at $66.0 billion, Taiwan at $14.1 billion, and Korea at $13.0 billion. The U.S. trade

deficit with China and Japan combined totaled $190.0 billion or about 35.5 percent of

the total U.S. trade deficit on goods.14

13 IMF, op. cit, pp. 47-50.

14Data in this section were taken from Commerce News FT900 (03-12) BEA-04-07 might differ from

data with the statistical appendix due to several adjustments.
1-17

Other goods

Figure 1-1

U.S. merchandise trade with the world, by product sectors, 2003

U.S. Exports -- $724.0 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, BEA-04-04, Dec. 2003 (03-12).

Statistics may not match with data in the appendix due to certain adjustments.

Food, feeds and beverages

U.S. Imports -- $1,259.7 billion dollars

Consumer goods

(Billion dollars)

$89.9 (12.4%)

$55.1 (7.6%)

Industrial supplies

$173.0 (23.9%)

Capital goods

$80.1 (11.1%)

$293.0 (40.5%)

Automotive vehicles

$32.9 (4.5%)

Other goods Food, feeds and beverages $47.9 (3.8%)

$55.8 (4.4%)

Industrial supplies

$316.5 (25.1%)

Capital goods

$295.7 (23.5%) $210.1 (16.7%)

Automotive vehicles

Consumer goods

$333.7 (26.5%)
1-18

Figure 1-2

U.S. merchandise exports, imports, and trade balances with major trading partners, 2003

--600

--400

--200

0

200

400

600

800

1000

1200

1400

EU 15 Canada Mexico Japan China Taiwan Korea Brazil World

Major trading partners

Billion dollars

EU (15) 150.6 244.8 -94.3

Canada 169.8 224.2 -54.4

Mexico 97.5 138.1 -40.6

Japan 52.1 118.0 -66.0

China 28.4 152.4 -124.0

Taiwan 17.5 31.6 -14.1

Korea 24.1 37.0 -13.0

Brazil 11.2 17.9 -6.7

World 724.0 1259.7 -535.7

Exports Imports Trade balance

Exports

Imports

Trade Balance

Billion dollars

Note.—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. 2003

(03-12). Statistics may not match with data in the appendix due to certain adjustments.
1-19

U.S. Balance of Payments Position

The U.S. current account deficit (the combined balances on trade in goods, services,

and investment income and net unilateral transfers) increased 12.7 percent to $541.8

billion in 2003, from $480.9 billion in 2002, according to the Bureau of Economic

Analysis of the U.S. Department of Commerce (see table 1-3). An increase in the deficit

on goods and services, and in net outflow for unilateral current transfers, accounted

for the increase. In contrast the balance on income shifted to a surplus in 2003 from a

deficit in 2002.15

Table 1-3

Summary of U.S. international transactions, 2002-03

(Billion dollars)

Item 2002 2003

Merchandise exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 681.9 713.8

Merchandise imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -1164.8 -1263.2

Balance on merchandise trade . . . . . . . . . . . . . . . . . . . . . . . . . . -482.9 -549.4

Services exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292.2 304.9

Services imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -227.4 -245.7

Balance on services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64.8 59.3

Balance on goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . -418.0 -490.2

Income receipts on U.S. assets abroad . . . . . . . . . . . . . . . . . . . . 255.5 275.5

Income payments on foreign assets in the United States . . . . . . . -259.5 -258.9

Balance on investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . -4.0 16.6

Balance on goods, services, and income . . . . . . . . . . . . . . . . . . . -422.0 -473.6

Unilateral transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -58.9 -68.3

Balance on current account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -480.9 -541.8

U.S. assets abroad, net, outflow (-) . . . . . . . . . . . . . . . . . . . . . . . -179.0 -277.7

Foreign assets in the U.S., net, inflow (+) . . . . . . . . . . . . . . . . . . . 707.0 856.7

Net capital inflows (+), outflows (-) . . . . . . . . . . . . . . . . . . . . . . . 528.0 579.0

Source: Bureau of Economic Analysis, U.S. International Transactions, Fourth Quarter and Year

2003, BEA 04-11. Details may not add to totals because of rounding. Figures are on

balance-of-payments basis. Exports of goods are adjusted for timing, valuation, and coverage to

balance-of-payments basis, excluding exports under U.S. military agency sales. Exports of

services include some goods that cannot be separately identified from services.

Agricultural and nonagricultural products exports increased. More than half of the

increase in nonagricultural products was attributable to a rise in industrial supplies

and materials; and the next largest increase was in consumer goods. About one- third

of the increase in goods imports was attributable to an increase in petroleum and

petroleum products. All major categories of nonpetroleum imports increased with the

largest increases in consumer goods and industrial supplies and materials.

The U.S. surplus on services trade decreased to $59.3 billion in 2003 from $64.8

billion in 2002. Services exports increased to $304.9 billion from $292.2 billion while

imports increased to $245.7 billion from $227.4 billion. Increases in exports of the

“other private services” category (such as business, professional, and technical and

financial services), and in royalties and license fees, and in “other” transportation—

such as freight and port services—were partly offset by decreases in travel and in

passenger fares. The increase in services imports was in “other private services,”

“other transportation,” and in direct defense expenditure.

15 U.S. Department of Commerce, Bureau of Economic Analysis, U.S. International Transactions

Fourth Quarter and Year 2003, BEA 04-11, available at BEA’s website at www.bea.gov/bea/rels.htm.
1-20

The balance on income shifted to a surplus of $16.6 billion from a deficit of $4.0 billion

in 2002 as income receipts on U.S.-owned assets abroad increased to $275.5 billion

from $255.5 billion in 2002, an increase of $20.0 billion, while income payments

declined to $258.9 billion from $259.5 billion. The increase in income receipts was

more than accounted for by an increase in direct investment receipts. Direct investment

income receipts increased to $175.5 billion from about $142.9 billion.

Income payments on foreign-owned assets in the United States decreased to $258.9

billion from $259.5 billion. Direct investment payments increased to $71.5 billion from

$49.5 billion in 2002. “Other” private payments—which consist of interest and

dividends and U.S. Government payments—both decreased.

U.S.-owned assets abroad increased by $277.7 billion in 2003, compared with an

increase of $179.0 billion in 2002. Foreign-owned assets in the United States

increased by $856.7 billion in 2003 compared with an increase of $707.0 billion in

2002.

Net inflows of foreign capital in the United States increased by $579.0 billion from

$528.0 billion in 2002. In 2003, the U.S. dollar depreciated 12 percent on a

trade-weighted yearly average basis against the Group of Seven major currencies.16

16 The G-7 includes the United States, Canada, Japan, Germany, France, the United Kingdom and

Italy.
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 and

regulations during 2003. Concerns covers the following: import relief laws; unfair

trade laws; certain other trade provisions, including the U.S. Generalized System of

Preferences (GSP), the African Growth and Opportunity Act, the Andean Trade

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

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

Caribbean Basin Trade Partnership Act (CBTPA); section 232 of the Trade Expansion

Act of 1962 on impairment of national security; and programs affecting textile and

apparel imports.

Import Relief Laws

The United States has enacted several laws that implement safeguard provisions in

international trade agreements, as well as a trade adjustment assistance program.

The U.S. global action safeguard law, which is based on Article XIX of GATT 1994 and

the WTO Agreement on Safeguards, is set forth in sections 201–204 of the Trade Act

of 1974, as amended.1 U.S. bilateral action safeguard laws include section 406 of the

Trade Act of 1974 (market disruption from imports from Communist countries),2

sections 421–422 of the Trade Act of 1974 (market disruption, trade diversion,

China),3 and sections 301–312 of the North American Free Trade Agreement (NAFTA)

Implementation Act.4 The trade adjustment assistance provisions are set forth starting

with section 221 of the Trade Act of 1974.5

Safeguard Actions

At the end of 2003, no U.S. safeguard measures were in effect and no petitions were

pending before the U.S. International Trade Commission (USITC or Commission),

although one USITC China safeguard recommendation was pending before the

President. During 2003, the President terminated or allowed to expire all three U.S.

global safeguard measures in place at the beginning of the year (certain steel

1 19 U.S.C. 2251 et seq.

2 19 U.S.C. 2436.

3 19 U.S.C. 2451, 2451a.

4 19 U.S.C. 3351 et seq.

5 19 U.S.C. 2271 et seq.
2-2

products, steel wire rod, and steel line pipe6); no new U.S. safeguard measures were

applied during the year under these statutes. During the year, the USITC conducted a

midcourse review investigation with respect to the U.S. global safeguard measure on

certain steel products,7 and completed three investigations under the U.S. China

safeguard law. The USITC made affirmative determinations and remedy

recommendations to the President in two of the China safeguard investigations (steel

wire garment hangers8 and ductile iron waterworks fittings9), and made a negative

determination in the third (brake drums and rotors10). The President decided not to

apply a safeguard measure in the steel wire garment hangers case,11 and the

recommendation in the ductile iron waterworks fittings case was pending before the

President at year end.12

The President terminated the U.S. global safeguard measure on certain steel products

in December 2003.13 The measure, in the form of increased tariffs and tariff rate

quotas, was initially applied in March 2002, and was liberalized in March 2003. The

President terminated the measure following receipt of the September 2003 USITC

monitoring report and after seeking information from the U.S. Secretary of Commerce

and U.S. Secretary of Labor, having determined that the effectiveness of the actions

taken had been impaired by changed circumstances.14 A U.S. licensing program on

imports of such steel products established under the original proclamation remained in

effect, pending establishment of a replacement program.15 Earlier in the year, in July

2003, a WTO panel found that the U.S. measure was inconsistent in certain

6 The safeguard measures on certain steel products were terminated by the President on December

4, 2003, and the measures on steel wire rod and steel line pipe were allowed to expire on Mar. 1, 2003.

7 USITC, Steel: Monitoring Developments in the Domestic Industry, investigation No. TA-204-0,

USITC publication No. 3632, Sept. 2003.

8 USITC, Certain Steel Wire Garment Hangers from China, investigation No. TA-421-2, USITC

publication No. 3575, Feb. 2003.

9 USITC, Certain Ductile Iron Waterworks Fittings from China, investigation No. TA-421-4, USITC

publication No. 3657, Dec. 2003.

10 USITC, Certain Brake Drums and Rotors from China, investigation No. TA-421-3, USITC

publication No. 3622, Aug. 2003.

11 See Memorandum for the Secretary of Commerce, the Secretary of Labor, and the United States

Trade Representative, April 25, 2004, downloaded from www.whitehouse.gov/news/releases/2003/

04/20030425-8.html.

12 The President subsequently decided not to apply a measure. See Memorandum for the United

States Trade Representative, March 3, 2004, downloaded from www.whitehouse.gov/news/

releases/2004/03/20040303-12. A fifth petition was filed under the statute in January 2004 with

respect to uncovered innerspring (mattress) units from China. The USITC made a negative determination

in that case in March 2004. See USITC, Uncovered Innerspring Units from China, investigation No.

TA-421-5, USITC publication No. 3676, Mar. 2004.

13 See Proclamation 7741 of December 4, 2003, 68 FR 68483, Dec. 8, 2003. The 14 steel products

covered by the measures included carbon and alloy steel (1) slabs, (2) plate, (3) hot-rolled steel, (4)

cold-rolled steel, (5) coated steel, (6) tin mill products, (7) hot bar, (8) cold bar, (9) rebar, (10) welded

tubular products other than OCTG, and (11) fittings; and stainless steel (12) bar, (13) rod, and (14) wire.

The President did not apply the measures to imports from Canada, Israel, Jordan, or Mexico, with which

the United States has free trade agreements, or to imports from most developing countries. See

Proclamation 7529 of March 5, 2002, 67 FR 10553, Mar. 7, 2002.

14 Proclamation 7741 of December 4, 2003, 68 FR 68483, Dec. 8, 2003.

15 Ibid.
2-3

respects with U.S. obligations under the WTO Agreement on Safeguards.16 The

United States appealed certain findings of the panel and in November 2003 theWTO

Appellate Body ruled that the U.S. measure was inconsistent in certain respects with

U.S. obligations under the Safeguards Agreement.17

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. On August 6, 2002, the President signed into law the

Trade Adjustment Assistance Reform Act of 2002 (TAA Reform Act), which

reauthorizes the TAA program through fiscal year 2007, and amends and adds

provisions to the TAA program. The TAA Reform Act made the following changes:

S Repealed NAFTA-TAA, consolidating the program into TAA (workers

certified for NAFTA-TAA under petitions received before November 4, 2002,

however, will continue to receive NAFTA-TAA services for as long as their

eligibility lasts);

S Expanded eligibility to more worker groups, increased existing benefits

available, and provided tax credits for health insurance coverage assistance;

S Increased timeliness for benefit receipt, training, and rapid response

assistance;

S Legislated specific waiver provisions;

S Established the Alternative Trade Adjustment Assistance program for older

workers beginning August 6, 2003; and

S Established the Trade Adjustment Assistance for Farmers program (TAA for

Farmers).18

These changes went into effect in fiscal year 2003. Table 2-1 provides a more detailed

comparison of the prior and current TAA programs.

16 United States – Definitive Safeguard Measures on Imports of Certain Steel Products,

WT/DS248/R, WT/DS249/R, WT/DS251/R, WT/DS252/R, WT/DS253/R, WT/DS254/R,

WT/DS258/R, and WT/DS259/R, July 11, 2003.

17United States – Definitive Safeguard Measures on Imports of Certain Steel Products, AB-2003-3,

WT/DS248/AB/R, WT/DS249/AB/R, WT/DS251/AB/R, WT/DS252/AB/R, WT/DS253/AB/R,

WT/DS254/AB/R, WT/DS258/AB/R, and WT/DS259/AB/R, Nov. 10, 2003.

18 U.S. Department of Labor, “Trade Adjustment Assistance Reform Act of 2002,” found at Internet

address http://www.doleta.gov/tradeact/2002act_index.cfm, retrieved Jan. 20, 2004.
2-4

Table 2-1

Trade Adjustment Assistance, comparison of prior and current programs

Topic Prior TAA Current TAA

Program consolidation Established two separate programs Consolidates into one TAA program; repeals NAFTA/TAA

Parties who may file Parties which may file:

S A group of three workers

S A company official

S A duly authorized representative of

the worker

Parties which may file:

S A group of three workers

S A company official

S A duly authorized representative of the worker

S One-stop operators and partners

S State Workforce Agencies

S State dislocated worker units

Location where parties

file

Required filing at:

S TAA: Department of Labor S NAFTA-TAA: State

Requires simultaneous filing with State dislocated worker unit

and Department of Labor

Determination period Determined petition as follows:

S TAA: 60 days from institution

S NAFTA-TAA: 40 days from receipt

Determines petitions 40 days from receipt

Eligibility: primary

workers

S TAA & NAFTA-TAA: Covered workers

affected by a decrease in sales or

production and layoffs

S NAFTA-TAA: Covered workers

affected by imports of like products

from, or shift in production to,

Canada or Mexico

Covers as previous, plus where:

S Workers’ firm has shifted production of like articles to

certain countries

S Increased imports

Eligibility: secondary

workers–suppliers

Not covered, but was under Workforce

Investment Act

Expands to secondary workers that directly supply primary

firms and either:

S Component is at least 20 percent of production, or

S Loss of business with the primary firm must contribute

importantly to job loss

Eligibility: secondary

workers–downstream

producers

Not covered Expands to secondary workers that finish or assemble articles

produced by primary firms where primary firm certified due

to imports from, or shifts in production to, Canada or Mexico

Training: enrollment

period

S TAA: No deadlines

S NAFTA-TAA: Required enrollment

within 16 weeks of separation or 6

weeks of certification

Requires enrollment within 16 weeks of separation or 8 weeks

of certification, and adds 45 days for extenuating

circumstances with approval

Training: requirement

waivers

Allowed waivers under broad and loosely

construed criteria

Allows waivers under 6 specific conditions

Training: on the job

training

Reimbursed company if worker is

employed for at least 6 months after

completion of course; does not authorize

customized training

Authorizes both on the job training and customized training

with no requirements

Job search allowances Reimbursed 90 percent of costs up to $800 Reimburses 90 percent of costs up to $1,250

Relocation allowance Stipend up to $800 Stipend up to $1,250

Income support Provided up to 78 weeks Provides up to 140 weeks, 130 if worker is in remedial

training

Income support:

training breaks

Provided continuous support if break was

less than 14 days

Provides continuous support if break is less than 30 days

Wage supplement Not provided Alternative Trade Adjustment Assistance: Allows workers over

50 to supplement decrease in income

Health care provisions Not provided Creates 65 percent health insurance tax credit

Funds available Provided $110 million Provides $220 million

Adjustment Assistance

for Firms

Established program, run by Department

of Commerce

Adds funding of $16 million to extend program through 2007

Adjustment Assistance

for Farmers

Not provided Authorized a new program, run by the U.S. Department of

Agriculture. Entitles certified farmers to training under TAA

Performance

management and

accountability

Required administratively The U.S. Department of Labor will place greater emphasis on

performance reporting and outcomes

Source: U.S. Department of Labor, Employee & Training Administration, “Trade Act of 2002 Workshop,” pp. 113-118, found at Internet

address http://www.doleta.gov/tradeact/wpd/2002act_training.pdf, retrieved Jan. 20, 2004.
2-5

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. TAA for Farmers, administered by the U.S. Department of Agriculture,

provides technical assistance and cash benefits to eligible producers. Industrywide

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.19

Assistance to Workers

The U.S. Department of Labor instituted 3,561 investigations during FY 2003 (October

1, 2002 through September 30, 2003) on the basis of petitions filed for TAA.

Petitioners for TAA represented a broad spectrum of manufacturing industries,

including circuit boards, textiles, and paper. The FY 2003 figure represents an

increase from the 2,404 TAA petitions instituted in FY 2002. The results of the TAA

investigations completed in FY 2003, including those in progress from the previous

fiscal year, are shown in table 2-2.

The number of completed TAA cases, including partial certifications and denied,

terminated, or withdrawn petitions, increased from 2,806 cases in FY 2002 to 3,583

cases in FY 2003. As shown in table 2-2, 196,112 workers were certified in FY 2003, a

decrease from the number certified in FY 2002. 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 have 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.

The Department of Labor awarded $222.1 million in TAA funding to assist workers

certified as eligible to receive services under the TAA program. Table 2-3 presents

data on benefits and services provided under the TAA program. State allocations for

FY 2003 increased to $347.2 million from $253.4 million in FY 2002. In addition,

there was an increase in the number of workers receiving such benefits to 44,135 new

recipients in FY2003 from 37,426 new recipients in FY2002.20

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

20 Because of the merging of the NAFTA-TAA program into the TAA program, as well as the

substantial changes included in the TAA Reform Act, FY 2003 data are not comparable to data provided

in previous issues of this report. Consequently, table categories have been modified from previous report

tables, and historical data are not provided in this year’s report.
2-6

Table 2-2

Results of petitions filed under the trade adjustment assistance program,

FY 2002 and FY 2003

Number of investigations or petitions Number of Workers

Item FY 2002 FY 2003 FY 2002 FY 2003

Completed certifications . . . . . . . . 1,634 1,874 233,162 196,112

Partial certifications . . . . . . . . . . . 11 4 1,868 241

Petitions denied . . . . . . . . . . . . . . 981 1,211 94,603 82,758

Petitions terminated or withdrawn 180 494 9,065 24,438

Total . . . . . . . . . . . . . . . . . . 2,806 3,583 338,698 303,549

Source: Preliminary (as of March 2004) data maintained by the U.S. Department of Labor, Employment

and Training Administration, Division of Trade Adjustment Assistance.

Table 2-3

Benefits and services provided under the trade adjustment assistance

program, FY 2002 and FY 2003

Estimated number of participants

Item FY 2002 FY 2003

Trade readjustment allowance benefits

Number of new recipients . . . . . . . . . . . . . . 37,426 44,135

Total allocations (million dollars) . . . . . . 253 347

Training, job search, and relocation services

Number entering training . . . . . . . . . . . . . . 37,163 43,206

Number receiving a job search allowance . 271 409

Number receiving a relocation allowance . . 388 713

Source: Preliminary (as of March 2004) data maintained by the U.S. Department of Labor, Employment

and Training Administration, Division of Trade Adjustment Assistance.

Trade Adjustment Assistance to Farmers21

The TAA Reform Act of 2002 established a new program, the TAA for Farmers,

administered by the U.S. Department of Agriculture. Under the TAA for Farmers, the

Department of Agriculture provides technical assistance and cash benefits to eligible

producers of raw agricultural commodities when the Administrator, Foreign

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

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

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

year 2003 through 2007 to carry out the program. The TAA for Farmers covers

farmers, ranchers, fish farmers, and fishermen competing with imported aquaculture

products, but does not cover the forest products industry.22 The TAA for Farmers

criteria state “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

21 Information obtained from the Coordinator, Trade Adjustment Assistance for Farmers, Foreign

Agriculture Service, U.S. Department of Agriculture.

22Department of Agriculture, “Trade Adjustment Assistance for Farmers,” found at Internet address

http://www.fas.usda.gov/itp/taa/taaindex.htm, retrieved Jan. 20, 2004; and Department of

Agriculture, “Trade Adjustment Assistance for Farmers: Trade Act of 2002: FAQ’s,” found at Internet

address http://www.fas.usda.gov/itp/taa/taafaq.htm, retrieved Jan. 20, 2004. For detailed

information on regarding the TAA for Farmers, see the above referenced websites.
2-7

years [and] FAS must make a determination that increases in imports of like or

competitive products “contributed importantly’ to the decline in prices.”23

Provided producers satisfy certain criteria, the program provides payments and

technical assistance, which may include technical publications, group seminars and

presentations, and one-on-one meetings. Cash benefits per unit of production are

one-half the difference between the most recent marketing year’s price and 80 percent

of the previous 5-year average price. To be eligible for benefits, producers must

provide production records and certify that they have: met with the Extension Service;

not received cash benefits under any other provisions of the Trade Act of 1974;

experienced a decline in net farm income for the most recent tax year; and did not

have 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. In FY

2003, no cash payments were made under the program.

Assistance to Firms and Industries24

The U.S. Department of Commerce’s Economic Development Administration (EDA)

certified 207 firms as eligible to applyfor trade adjustment assistance during FY 2003.

This figure represents an increase from the 170 firms certified in the previous fiscal

year. To be certified as eligible to apply for trade adjustment assistance, 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 2003,

EDA approved adjustment strategies for 162 firms, an increase from 141 in FY 2002.

The EDA administers its technical assistance programs through a nationwide network

of 12 Trade Adjustment Assistance Centers (TAACs). 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. The funding for the TAACs from the TAA appropriation for FY 2003 totaled

$10.4 million, slightly less than the previous fiscal year.

23 Ibid. Department of Agriculture, “Trade Adjustment Assistance for Farmers: Trade Act of 2002:

FAQ’s.”

24 Information obtained from the Planning and Development Assistance Division, Economic

Development Administration, U.S. Department of Commerce.
2-8

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 unfair foreign practices affecting U.S. exports of goods or services.25

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 Representatives

(USTR) to investigate aforeign government policy or practice, or USTR may self-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.

Active Cases in 2003

In 2003, the active cases under section 301 concerned the EU’s meat hormone

directive and intellectual property protection in Ukraine. In the meat hormone case, the

United States successfully challenged in the WTO an EU law that banned imports of

meat from animals that had been treated with certain hormones. The EU law effectively

banned imports of U.S. beef and beef products. The WTO panel and the Appellate

Bodyfound that the ban violated the EU’sWTO obligations because the EU law was not

based on objective scientific evidence. The EU did not comply with the WTO ruling, so

the United States sought and received authorization from the WTO to withdraw

concessions on a commensurate amount of trade. Accordingly, in July 1999, the

United States imposed additional 100 percent ad valorem duties on about $117 million

in imports from the EU. The additional duties have remained in effect since that time

and the bilateral trade dispute remains unresolved.

USTR identified Ukraine as a priority foreign country under the special 301 provisions

in 2001 due to its denial of adequate and effective protection of intellectual property

25 Sections 301–309 of the Trade Act of 1974, as amended (19 U.S.C. 2411–2419).
2-9

rights (IPR) and initiated a 301 investigation.26 Specifically, USTR found that Ukraine

failed to address a significant level of optical media piracy that has caused substantial

damage to U.S. rights-holders and disrupted markets throughout the region, and also

found that Ukraine to have failed to fulfill commitments it made in the June 2000

U.S.-Ukraine Joint Action Plan to Combat Optical Media Piracy in Ukraine. In a

parallel proceeding, USTR suspended Ukraine’s eligibility for the GSP program due to

inadequate and ineffective protection of IPR.27 When bilateral consultations failed to

result in an agreement that satisfactorily addressed optical media piracy, USTR issued

a preliminary retaliation list under section 301.28 In December 2001, USTR

announced that the United States would impose 100 percent ad valorem duties on $75

million in importsfrom Ukraine.29 Bilateral consultations continued, but the suspension

of GSP benefits and the additional duties remained in effect during 2003.

Some other active 301 investigations30 are the subject of ongoing WTO dispute

settlement proceedings. Table 2-4 contains a listing of active 301 cases.

Table 2-4

Active 301 cases in 2003

Docket No. Summary and actions occuring during course of investigation

Docket No. 301-62a European Union and the Meat Hormone Directive

In 1987, the President announced his intention to impose prohibitive duties on certain

imports from the European Union in response to the adoption and implementation of

the Meat Hormone Directive, which banned imports of meat produced from animals

treated with growth hormones. Following a long series of bilateral consultations

during the ensuing years, USTR eventually resorted to the WTO dispute settlement

process. In 1997, the WTO found that the EU’s ban 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 European Union. The increased duties remained in effect

during 2003.

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 due to

inadequate and ineffective protection of IPR. 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, the USTR announced that the United States would impose prohibitive

duties on certain imports from Ukraine. The suspension of GSP benefits and the

additional duties remained in effect during 2003.

Source: Compiled by USITC staff. from: USTR, Press Release 99-44, May 14, 1999, and 64 Federal Register 28860, May 27, 1999. 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. USTR, Press Release 01-86, Oct. 22, 2001.

26 USTR, press release 01-15, Mar. 13, 2001; and 66 FR 18346, Apr. 6, 2001.

27 66 FR 16515, Mar. 26, 2001; USTR, press release 01-61, Aug. 7, 2001; and 66 FR 42246, Aug.

10, 2001.

28 USTR, press release 01-61, Aug. 7, 2001; and 66 FR 42246, Aug. 10, 2001.

29 USTR, press release 01-115, Dec. 20, 2001; 67 FR 120, Jan. 2, 2002; and USTR, press release

02-10, Jan. 23, 2002.

30 USTR, 2004 Trade Policy Agenda and 2003 Annual Report, p. 30.
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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 intellectual property protection.31 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 intellectual property rights.32 A country may be found to be

denying adequate and effective IPR protection even if it is in full compliance with its

obligations under theWTO TRIPs Agreement.33 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-calledwatch list or the priority watch list 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.34 The priority

watch list is 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 the 2003 special 301 review, USTR devoted special attention to counterfeiting and

piracy, with particular emphasis on the unauthorized production of optical media

(e.g., CDs, VCDs, DVDs, and CD-ROMs). In addition, USTR 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.

In the 2003 review, USTR identified 50 countries that deny adequate and effective IPR

protection.35 As noted above, USTR maintained Ukraine’s designation as a priority

foreign country and sanctions remained in effect. Eleven countries were placed on the

priority watch list and 36 countries were placed on the watch list. In addition, USTR

noted that China and Paraguay continue to be subject to ongoing monitoring to ensure

that each country complies with previous commitments made under a bilateral IPR

agreement. USTR also announced that an out-of-cycle review would be conducted of

the IPR regimes in Korea, and that it will review any progress made in Bolivia, Ecuador,

31 Section 182 of the Trade Act of 1974, (19 U.S.C. 2242).

32 Section 182(b)(1) of the Trade Act of 1974 (19 U.S.C. 2242 (b)(1)).

33 Section 182(d)(4) of the Trade Act of 1974,(19 U.S.C. 2242(d)(4)).

34 USTR, 2003 Annual Report, Mar. 2004, p. 215.

35USTR, press release 03-28, May 1, 2003; and 68 FR 24785, May 8, 2003. See also USTR, 2003

Special 301 Report, found at http://www.ustr.gov/reports/2003/special301.htm, retrieved Mar. 24,

2004.
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Peru, and Venezuela. Finally, USTR reiterated in the 2003 special 301 review that, in

promoting intellectual property protection, the United States is committed to working

with countries to develop workable programs to prevent and treat HIV/AIDS, malaria,

tuberculosis, and other epidemics within the framework of the WTO TRIPs

Agreement.36

Antidumping Investigations

The U.S. antidumping law is contained in Title VII of the Tariff Act of 1930.37 The

antidumping law provides relief in the form of additional duties to offset margins of

dumping. Antidumping duties are imposedwhen (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 (i.e., 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.38 The antidumping

duty equals 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 antidumping

investigations in making their separate determinations.39 The Commission instituted

36 USTR, 2003 Special 301 Report, p. 6. See also USTR, press release 02-56, June 24, 2002, and

USTR, press release 02-119, Dec. 20, 2002. For a related statement of principles, see USTR Background

Paper, TRIPs and Health Emergencies, press release 01-97, Nov. 10, 2001.

37 19 U.S.C. 1673 et seq.

38 19 U.S.C. 1677b; 19 CFR part 353, subpart D.

39 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 its final injury determination. If the Commission’s reasonable indication or preliminary

phase determination is negative, both the Commission and Commerce terminate further investigation.
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45 new antidumping investigations during 2003 and completed 31 investigations.40

Antidumping duties were imposed as a result of affirmative determinations in 15 of

those completed investigations, on products from 7 different countries. The

antidumping duty orders issued in 2003 are shown in table 2-5 (in alphabetical order

by country).

Table 2-5

Antidumping duty orders that became effective during 2003

Country Product Range of duty

Percent

Canada . . . . . . . . . . . . Hard red spring wheat 8.86

China . . . . . . . . . . . . . Barium carbonate 34.44-81.30

China . . . . . . . . . . . . . Ferrovanadium 12.97-66.71

China . . . . . . . . . . . . . Lawn and garden steel fence posts 6.60-15.61

China . . . . . . . . . . . . . Malleable iron pipe fittings 7.35-111.36

China . . . . . . . . . . . . . Non-malleable cast iron pipe fittings 6.34-75.50

China . . . . . . . . . . . . . Polyvinyl alcohol 6.91-97.86

China . . . . . . . . . . . . . Refined brown aluminum oxide 135.18

China . . . . . . . . . . . . . Saccharin 249.39-329.94

Japan . . . . . . . . . . . . . Ceramic station post insulators 105.80

Japan . . . . . . . . . . . . . Polyvinyl alcohol 76.78-144.16

Korea . . . . . . . . . . . . . Polyvinyl alcohol 32.08-38.74

Russia . . . . . . . . . . . . . Silicon metal 56.11-79.42

South Africa . . . . . . . . Ferrovanadium 116.00

Vietnam . . . . . . . . . . . . Frozen fish fillets 36.84-63.88

Source: Compiled by the Commission from Federal Register notices.

Details on all antidumping investigations active at the Commission during 2003 are

presented in table A-1 and a list of all outstanding antidumping duty orders, including

suspension agreements,41 in effect as of the end of the year is presented in 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 additional duties to offset certain foreign subsidies on

products imported into the United States.42 In general, procedures for such

40 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 if there are simultaneous investigations of the same product from multiple countries, 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

country investigation.

41 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 6 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. See 19 U.S.C. 1673c.

42 A 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).
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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.

The Commission instituted six new countervailing duty investigations during 2003 and

completed seven investigations. Countervailing duties were imposed as a result of

affirmative determinations in two of those completed investigations on products from

two different countries. The countervailing duty orders issued in 2003 are shown in

table 2-6 (in alphabetical order by country). Details on all countervailing duty

investigations active at the Commission during 2003 are presented in table A-3 and a

list of all outstanding countervailing duty orders, including suspension agreements,43

in effect as of the end of the year is presented in table A-4.

Table 2-6

Countervailing duty orders that became effective during 2003

Country Product Range of duty

Percent

Canada . . . . . . . . . . . . . . . Hard red spring wheat 5.29

Korea . . . . . . . . . . . . . . . . DRAMs and DRAM modules 44.29

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 requires44 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

43 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 6 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 generally

reinstituted if subsidization recurs. See 19 U.S.C. 1671c.

44 19 U.S.C. 1675.
2-14

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. The Commission conducted no

changed circumstances investigations during 2003.

The Uruguay Round Agreements Act amended section 751 of the Tariff Act of 1930 to

require both Commerce and the Commission to conduct sunset reviews of all

outstanding orders and suspension agreements 5 years after 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.45 During 2003, Commerce and the Commission instituted 12 sunset

reviews of existing antidumping and countervailing duty orders46 and the Commission

completed 6 reviews, resulting in 5 antidumping orders or suspension agreements

being continued for 5 additional years. Table A-5 shows completed reviews of

antidumping orders or suspension agreements in 2003.47

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, for which a domestic industry exists or is in the process of being

established.48

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

45 19 U.S.C. 1675c.

46 One of these reviews was subsequently terminated and the outstanding order/suspension

agreement revoked because a domestic industry did not request that it be continued. The revoked

antidumping duty order was on fresh Atlantic salmon from Chile.

47 For detailed information on reviews instituted, as well as Commission action in all reviews, see the

Commission’s Internet website section entitled “Five-year “Sunset” Reviews” at http://www.usitc.gov/

webinv.htm.

48 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 to 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.
2-15

and desist from engaging in the unlawful practices.49 The President may disapprove a

Commission order within 60 days of its issuance for “policy reasons.”

During 2003, there were 37 active section 337 investigations and ancillary

proceedings, 19 of which were instituted in 2003. Of these 19, 18 were new section

337 investigations and one was a new ancillary proceeding. Further, with respect to

the 19 institutions in 2003, 15 involved allegations of patent infringement and four

involved allegations of trademark and/or trade dress infringement. Six investigations

were terminated on the basis of settlement agreements and two investigations were

terminated based on consent orders. The Commission completed a total of 18

investigations and ancillary proceedings under section 337 in 2003, including one

combined enforcement and advisory opinion proceeding relating to a previously

concluded investigation.

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 high-speed wireless local

area network systems; hardware and software systems for storing, managing, and

protecting collections of data; recordable and rewritable compact discs; various

memory chips and related integrated circuit devices; and processes for semiconductor

fabrication. Several other investigations involved sophisticated technologies relating

to items such as antibiotics, machines used for manufacturing microelectronic devices,

apparatus used to convey and sort packages, and bearings used in industrial

applications. Other section 337 investigations active during the year concerned video

game systems, disposable cameras, alkaline batteries, home vacuum packaging

machines, insect traps, and electrical safety devices used as wall outlets in bathrooms

and kitchens.

Three exclusion orders and four cease-and-desist orders were issued during 2003.

Several investigations were terminated by the Commission without determining

whether section 337 had been violated. Generally, these terminations were based on

settlement agreements, consent orders, or withdrawal of complaints. At the close of

2003, 19 were section 337 investigations and related proceedings were pending at

the Commission. Commission activities involving section 337 actions in 2003 are

presented in appendix table A-6.

As of December 31, 2003, a total of 51 outstanding exclusion orders based on

violations of section 337 were in effect, of which 25 involve unexpired patents.

Appendix table A-7 lists the investigations in which these exclusion orders were issued.

49 Section 337 proceedings at the Commission are conducted in part 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.
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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. The GSP

program expired on September 30, 2001. However, it was extended retroactively

from October 1, 2001 through December 31, 2006 by legislation (Public Law 107-210)

signed by the President on August 6, 2002. 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 for U.S. business and lowering prices for American consumers.

Under the program the President designates countries as “beneficiary developing

countries.” 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 or countries that

do not afford adequate protection to intellectual property rights or afford

internationally recognized worker rights to their workers.50 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 the GSP. Certain

articles (for example, footwear, textiles, and apparel) are designated by statute as

“import-sensitive” by statute and thus not eligible for duty-free treatment under the

GSP program.51 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.

50 19 U.S.C. 2462(b).

51 19 U.S.C. 2463.
2-17

In Proclamation 7637 of January 10, 2003 (68 FR 1951), the President proclaimed

certain modifications of the duty-free treatment under the GSP. The modifications

provided for (1) the designation of Afghanistan as a GSP and LDBDC beneficiary

country; (2) the withdrawal of the application of duty-free treatment under the GSP

accorded to a certain article from Chile; and (3)duty-free treatment for a certain

article when imported from any beneficiary sub-Saharan African country. In

Proclamation 7689 of June 30, 2003 (68 FR 39795), the President proclaimed certain

modifications to the GSP implementing decisions made in regard to the 2001 Special

Three Country Review and 2002 Annual GSP Review. The modifications provided for

(1) the granting of de minimis waivers for certain articles and restoration to

preferential treatment of certain eligible articles from certain beneficiary countries; (2)

the exclusion of specified articles from certain beneficiary countries from eligibility for

preferential treatment under GSP where shipments exceeded the competitive need

limits for calendar year 2002; (3) the granting of waivers of the competitive need limits

for 12 Harmonized Tariff Schedule of the United States (HTS) subheadings for certain

countries; and (4) designate certain articles as eligible articles under the GSP only for

least-developed beneficiary developing countries.52

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. On April 13, 2001, USTR in a Federal Register notice (66 FR 19278)

announced the invitation for the submission of petitions on a 2001 Annual GSP Product

and Country Eligibility Practices Review, but stated that if the GSP program expired on

September 30, 2001, then the 2001 GSP Annual Review would be conducted on a

schedule to be announced if and when the program was reauthorized. On November

1, 2002, USTR in a Federal Register notice (67 FR 69699) announced the initiation of

the 2002 Annual GSP Product and Country Practices Review and also the date by

which petitions for modifications of the GSP were to be submitted, that petitions

submitted for the 2001 GSP Annual Review would be merged to the extent practicable

with the 2002 GSP Annual Review, and that the notification of the petitions have been

52 “(2) Competitive need limitation.—

(A) Basis for withdrawal of duty-free treatment.—

(i) In general.– Except as provided in clause (ii) and subject to subsection (d), whenever the

President determines that a beneficiary developing country has exported (directly or indirectly) to the

United States during any calendar year beginning after December 31. 1995–

(I) a quantity of an eligible article having an appraised value in excess of the applicable

amount for the calendar year, or

(II) a quantity of an eligible article equal to or exceeding 50 percent of the appraised value of

total imports of that article into the United States during any calendar year, the President shall, not later

than July 1 of the next calendar year, terminate the duty-free treatment for that article from that

beneficiary developing country

. (ii) Annual adjustment of applicable amount.– For purposes of applying clause (I), the applicable

amount is–

(I) for 1996, $75,000,000, and

(II) for each calendar year thereafter, an amount equal to the applicable amount in effect for

the preceding calendar year plus $5,000,000.”
2-18

accepted, and other relevant dates, including the review schedule, would be issued in

a subsequent Federal Register notice. On March 11, 2003, USTR in a Federal Register

notice (68 FR 11607) announced the combined product petitions from both 2001 and

2002 that were accepted for review in the 2002 GSP Annual review. The USTR

requested in a letter that the Commission provide advice concerning possible

modifications to the GSP for the products in the 2002 Annual GSP Review.

Several other actions were taken by USTR under the GSP in 2003. On July 3, 2003,

USTR in a Federal Register notice (68 FR 40012) announced the results of the 2002

Annual Products Review, 2001 Special Three Country Review, GSP-AGOA 2001

Review, and previously deferred product decisions. On July 16, 2003, USTR in a

Federal Register notice (68 FR 42156) announced the extension of the deadline for the

submissions of petitions for the 2003 Annual GSP Product and Country Eligibility

Practices Review to September 3, 2003. Also on July 16, 2003, USTR in a Federal

Register notice (68 FR 42157) announced the initiation of a review to consider the

designation of Algeria as a beneficiary developing country under the GSP and the

solicitation of public comments. And on September 3, 2003, USTR in a Federal Register

notice (68 FR 52437) announced the 2001 and 2002 country practice petitions that

were accepted for review and set forth the schedule for comment and public hearings

on accepted petitions and on other ongoing country practice reviews.

There were $21.3 billion in duty-free imports entered under the GSP program in 2003,

accounting for more than 11.9 percent of total U.S. imports from GSP beneficiaries and

1.7 percent of total U.S. imports (table 2-7). Angola was the leading GSP beneficiary in

2003, followed by Thailand, India, Brazil, and Indonesia (table 2-8). Appendix table

A-8 shows the top 20 GSP products or product categories in 2003, and table A-9

shows the overall sectoral distribution of GSP benefits.

African Growth and Opportunity Act

The Trade and Development Act of 2000 provides expanded trade benefits for 48

eligible sub-Saharan African (SSA) countries under Title I, the African Growth and

Opportunity Act (AGOA).53 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, if it is determined that these products are not

import-sensitive in the context of imports from these countries. Although the GSP

(including LDBDC) in 2003 covers about 5,300 items, AGOA (including GSP) applies

to more than 5,500 items. AGOA also exempts SSA beneficiaries from GSP

competitive need limits. The legislation provides for the graduation of countries from

the program when they become high-income countries and for the removal of

eligibility of items, or items from certain countries, under certain conditions. The

provisions are scheduled to remain in effect until September 30, 2008. Section 3108 of

53 Trade and Development Act of 2000, Public Law 106-200, Title I, May 18, 2000, 114 Stat. 252.
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Table 2-7

U.S. imports for consumption from GSP beneficiaries and the world, 2003

(Million dollars)

Item

All GSP

beneficiaries World

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177,848 1,245,113

Total GSP-eligible products . . . . . . . . . . . . . . . . . . . . . . . . . . 30,898 563,994

Total GSP (non-LDBDC) eligible . . . . . . . . . . . . . . . . . . . . . . . . 26,004 274,022

GSP-LDBDC eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,895 289,972

Total of Duty Free . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,276 21,276

Duty-free under non-LDBDC GSP . . . . . . . . . . . . . . . . . . . . . 16,510 16,510

Duty-free under GSP-LDBDC . . . . . . . . . . . . . . . . . . . . . . . . . 4,766 4,766

Total of GSP eligible products not benefitting from GSP

duty-free treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,622 542,718

GSP Program exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,528 4,528

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,095 538,190

Noneligible products imports . . . . . . . . . . . . . . . . . . . . . . . . . . 146,950 681,118

Note.—Customs-value basis; excludes imports from the 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 parentheses

(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 certain beneficiary

countries, specified in general note 4(d) of the HTS, are not eligible for duty-free treatment with respect to any

article provided for in the designated provision). Least-developed beneficiary developing countries (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 symbol “A+” in parentheses (the symbol

“A+” indicates that all least-developed beneficiary developing countries (LDBDC) (and only LDBDCs) 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 at least five types of reasons: (1) the imports fail to claim GSP

benefits affirmatively; (2) the goods are from a GSP beneficiary that lost GSP benefits on that product for

exceeding the so-called competitive need limits; (3) the goods are from a GSP beneficiary country that lost GSP

benefits on that product because of a petition to remove that country from GSP for that product or because of

some other action by the President or USTR; (4) the GSP beneficiary country may claim duty-free treatment

under some other program or provision of the HTS; and (5) 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.

the Trade Act of 2002 included many enhancements to the original AGOA

provisions54 and expanded preferential access for apparel imports from SSA

beneficiaries.55

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 they are making continued progress toward establishing

a market-based economy, the rule of law and political pluralism, free trade, and

54 The modifications collectively are referred to as AGOA II. In this report, the term AGOA refers to

both the original and the enhanced AGOA provisions.

55 AGOA textile and apparel benefits are described in more detail later in this chapter.
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Table 2-8

U.S. imports for consumption and imports under GSP from leading

beneficiaries and total, 2003

(Million dollars)

Rank Beneficiary Total Imports GSP eligible Duty Free

1 Angola . . . . . . . . . . . . . . . . . 4,005 3,937 3,883

2 Thailand . . . . . . . . . . . . . . . . 15,071 3,500 2,702

3 India . . . . . . . . . . . . . . . . . . . 13,025 3,238 2,646

4 Brazil . . . . . . . . . . . . . . . . . . . 17,547 3,892 2,490

5 Indonesia . . . . . . . . . . . . . . . . 9,449 1,935 1,347

6 Philippines . . . . . . . . . . . . . . . 10,046 1,268 894

7 Eq. Guinea . . . . . . . . . . . . . . 864 774 764

8 Turkey . . . . . . . . . . . . . . . . . . 3,776 848 723

9 South Africa . . . . . . . . . . . . . 4,888 723 670

10 Venezuela . . . . . . . . . . . . . . . 14,322 628 619

11 Chile . . . . . . . . . . . . . . . . . . . 3,979 1,125 524

12 Argentina . . . . . . . . . . . . . . . 3,081 582 451

13 Russia . . . . . . . . . . . . . . . . . . 8,261 495 430

14 Hungary . . . . . . . . . . . . . . . . 2,697 775 405

15 Poland . . . . . . . . . . . . . . . . . . 1,323 592 374

Subtotal . . . . . . . . . . . . . . . . . 112,332 24,312 18,921

Total, all other . . . . . . . . . . 1,132,780 6,587 2,355

Total . . . . . . . . . . . . . . . . . 1,245,113 30,898 21,276

Note.—Figures do not include Virgin Island imports.

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

economic policies that will reduce poverty and protect workers rights.56Additionally, a

country (1) cannot engage in activities that undermine U.S. national security or foreign

policy interests, (2) may not be involved in gross violations of internationally

recognized human rights, (3) cannot provide support for acts of international

terrorism, and (4) must have implemented commitments to eliminate the worst forms of

child labor.

All 48 SSA countries are potentially eligible for AGOA benefits. A total of 35 SSA

countries had been designated by the President as eligible for AGOA

benefits—excluding AGOA textile and apparel benefits—as of December 31, 2001.57

Côte d’Ivoire was designated as the 36th eligible country on May 16, 2002. On

December 31, 2002, the President designated 38 countries as AGOA-eligible under

the annual review, adding The Gambia and the Democratic Republic of Congo to the

56 USTR, 2003 Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan

Africa and Implementation of the African Growth and Opportunity Act: The Third of Eight Annual

Reports, May 2003, found at http://www.agoa.gov/resources/annual_3.pdf, retrieved July 3, 2003.

57 The 35 countries were: Benin, Botswana, Cameroon, Cape Verde, Central African Republic,

Chad, Republic of the Congo, Djibouti, Eritrea, Ethiopia, Gabon, Ghana, Guinea, Guinea-Bissau,

Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger,

Nigeria, Rwanda, São Tomè and Principe, Senegal, Seychelles, Sierra Leone, South Africa, Swaziland,

Tanzania, Uganda, and Zambia.
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list of 36 countries already designated as eligible.58 Of the 38 SSA countries

designated as eligible for AGOA benefits, 24 have met the additional requirements to

qualify for the AGOA textile and apparel trade benefits as of May 1, 2004.59 In

addition, all but two of the 24 countries (Mauritius and South Africa) are eligible for

lesser-developed beneficiary country (LDBC) benefits, allowing producers in these

countries to use third-country fabric—fabrics other than of U.S. or SSA origin—in

qualifying apparel.60

On December 30, 2003, President Bush approved the continued designation of 36

sub-Saharan countries as eligible for tariff preferences under AGOA.61 The President

further determined that Angola should be designated as an AGOA beneficiary

country. Two countries, Eritrea and the Central African Republic, did not meet the

AGOA eligibility requirements and were removed from the list of eligible countries.62

Twenty-four beneficiary countries were further designated to be eligible for the

apparel benefits under AGOA, benefits that are not automatic.63

In 2003, U.S. exports to SSA reached $6.7 billion. This represented a 13.1-percent

increase from 2002. The leading U.S. export markets in SSA were South Africa (40

percent of U.S. exports to SSA), Nigeria (15 percent), Angola (7 percent), Ethiopia (6

percent), Equatorial Guinea (5 percent), and Ghana (5 percent). Major export items

included oil and gas exploration machinery, wheat and meslin, aircraft and parts,

motor vehicles, computer parts and accessories, and worn clothing. U.S. exports to

Ethiopia, Equatorial Guinea, and Eritrea increased by 578, 212, or 203 percent,

respectively. U.S. imports from SSA during 2003 reached $25.5 billion, about 2

percent of U.S. merchandise imports worldwide, an increase of 40 percent from the

$18.2 billion reached during 2002. The leading SSA import sources were Nigeria (40

percent), South Africa (19 percent), Angola (16 percent), and Gabon (8 percent).

58White House, “Statement by the Deputy Press Secretary,” found at http://www.whitehouse.gov/

news/releases/2003/01/20030104-1.html, retrieved Jan. 16, 2003.

59 The 19 countries are: Botswana, Cameroon, Cape Verde, Ethiopia, Ghana, Kenya, Lesotho,

Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Senegal, South Africa, Swaziland,

Tanzania, Uganda, and Zambia. Six countries-Cameroon, Cape Verde, Ghana, Mozambique,

Senegal, and Tanzania became eligible for textile and apparel benefits under AGOA in 2002. Botswana

and Namibia do not meet the definition of “lesser developed” countries, but were added to the list by the

Trade Act of 2002. Rwanda, Mali, Niger and Cote d’Ivoire qualified for such benefits in 2003. Benin and

Sierra Leone qualified for such benefits in early 2004.

60 AGOA textile and apparel benefits are described in more detail later in this chapter.

61 The 36 countries are Benin, Botswana, Cameroon, Cape Verde, Chad, Republic of the Congo,

Côte d’Ivoire, 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, Rwanda, São Tomé and Príncipe, Senegal, Seychelles, Sierra

Leone, South Africa, Swaziland, Tanzania, Uganda, and Zambia.

62 The White House, “To Take Certain Actions Under the African Growth and Opportunity Act, and

for Other Purposes,” found at http://www.agoa.gov.

63 The 24 SSA countries are Benin, Botswana, Cameroon, Cape Verde, Côte d’Ivoire, Ethiopia,

Ghana, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritius, Mozambique, Namibia, Niger,

Rwanda, Senegal, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda, and Zambia.
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AGOA helped spur increases in imports from sub-Saharan Africa. In 2003, AGOA

imports (including GSP) totaled nearly $18 billion, accounting for more than two-thirds

of total U.S. imports from the region.64 The top three import items from the SSA region

under AGOA were crude petroleum oil, and passenger motor vehicles. Although

energy-related products continued to dominate U.S. imports from SSA, imports of

apparel, as well as transportation equipment have increased significantly due to

AGOA. Non-petroleum AGOA imports totaled $2.9 billion in 2003, an increase of 32

percent from 2002. Leading non-petroleum import items under AGOA are presented

in table A-10.65 The top seven AGOA beneficiaries in 2003 were in terms of

non-petroleum imports Nigeria, South Africa, Angola, Gabon, Côte d’Ivoire, Congo

(ROC), and Lesotho. AGOA imports from Namibia, Congo (ROC), and Nigeria

increased by 2,623,220; and 73 percent, respectively (table A-11).

Andean Trade Preference Act

In 2003, articles from Bolivia, Colombia, Ecuador, and Peru entering the United States

free of duty under the Andean Trade Preference Act (ATPA) accounted for 50 percent

of the total U.S. imports from those countries. 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.66 ATPA expired on December 4, 2001, but was renewed retroactively to

the expiration date on August 6, 2002, under the Andean Trade Promotion and Drug

Eradication Act (ATPDEA), part of the Trade Act of 2002.67 ATPA, as amended by the

ATPDEA, is scheduled to expire on December 31, 2006, the targeted effective date of

the Free Trade Agreement of the Americas (FTAA).

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

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

64 For additional information on AGOA see Selamawit Legesse and Laurie-Ann Agama, ”Trade

Under AGOA Continues to Expand,” USITC, International Economic Review, USITC publication 3675,

Jan.-Feb. 2004.

65 For more information about U.S. trade and investment with sub-Saharan Africa, see USITC, U.S.

Trade and Investment with Sub-Saharan Africa, Inv. No. 332-415, publication 3650, Dec. 2003.

66 For a more detailed description of ATPA, including country and product eligibility, see USITC, The

Impact of the Andean Trade Preference Act, Ninth Report 2002, publication 3637, Sept. 2003.

67 Pub. L. 107-210, Title XXXI.
2-23

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.

The four ATPA beneficiaries are not automatically eligible for ATPDEA preferences.

ATPDEA authorizes the President to designate any ATPA beneficiary as an ATPDEA

beneficiary provided that the President determines that the country has satisfied

certain requirements, including the provision of protection of intellectual property

rights and internationally recognized worker rights. On October 31, 2002, the

President designated all four ATPA beneficiaries as ATPDEA beneficiaries.68

U.S. imports from ATPA countries increased 21 percent to $11.6 billion in 2003 from

$9.6 billion in 2002 (table 2-9). U.S. imports under ATPA in 2003 were valued at $5.8

billion, of which 72 percent, or $4.2 billion, were imports under ATPDEA. U.S. imports

under the original ATPA (ATPA excluding ATPDEA) accounted for the remaining 28

percent, or $1.6 billion. It is difficult to compare U.S. imports under ATPA in 2003 with

such imports in 2002for two major reasons: (1) the ATPA program was not in effect for

over 7 months of 2002 and (2) with the implementation of ATPDEA on October 31,

2002, the year 2003 marked the first year in which full-year ATPDEA data were

available. Thus, U.S. imports under ATPA, including U.S. imports under ATPA from

each of the beneficiary countries (appendix table A-12) and of all leading products

(appendix table A-13) increased substantially in 2003 compared with 2002.

Table 2-9

U.S. imports for consumption from ATPA countries, 2001-03

Item 2001 2002 2003

Total imports from ATPA countries

(1,000 dollars) . . . . . . . . . . . . . . . . . . . . . . . . . 9,568,661 9,611,482 11,639,464

Total under ATPA (1,000 dollars) . . . . . . . . . . . . 1,674,607 1,000,816 5,836,032

Imports under ATPDEA . . . . . . . . . . . . . . . . . . . . 0 217,774 4,211,384

Total under ATPA, excluding ATPDEA

(1,000 dollars) . . . . . . . . . . . . . . . . . . . . . . . . . 1,674,607 783,042 1,624,648

Total under ATPA as a percent of total . . . . . . . . 18 10 50

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

Colombia remained the largest source of U.S. imports under ATPA in 2003. However,

Ecuador displaced Peru as the second largest source of imports under ATPA in 2003

primarily as a result of the eligibility of petroleum products under ATPDEA. Of the top

20 U.S. imports under ATPA, four of the items were petroleum products, which

accounted for 58 percent of imports under ATPA in 2003. Other leading imports

among the top five included copper cathodes, which ranked third, and fresh cut roses,

which ranked fifth.

68 “Presidential Proclamation 7616—To Implement the Andean Trade Promotion and Drug

Eradication Act,” 67 FR 67283-67291, Oct. 31, 2002.
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Caribbean Basin Economic Recovery Act

In 2003, 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) accounted for 43 percent of total

U.S. imports from those countries.69 CBERA has been operative since January 1, 1984.

The act, as amended, has no statutory expiration date.70 CBERA is the trade-related

component of the Caribbean Basin Initiative (CBI).71 President Reagan launched CBI in

1982 to promote export-led economic growth and economic diversification in these

countries.72

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

industry.73 The CBTPA extended NAFTA-equivalent treatment (rates of duty

equivalent to those accorded to goods of Mexico, 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.74

Table 2-10 shows U.S. imports under the expanded CBERA during 2001-2003 – the

first 3-year period it has been in effect. During 2001, the first full year of the expanded

Table 2-10

U.S. imports for consumption from CBERA countries, 2001-03

Item 2001 2002 2003

Total imports from CBERA countries

(1,000 dollars) . . . . . . . . . . . . . . . . . . . . . . . . 20,678,868 21,254,828 24,499,559

Total under CBTPA (1000 dollars) . . . . . . . . . . . 5,592,870 7,078,010 7,462,064

Total under CBERA excluding CAPTA

(1,000 dollars) . . . . . . . . . . . . . . . . . . . . . . . . 2,706,287 2,918,396 2,965,205

Total under CBERA includes CBTPA

(1,000 dollars) . . . . . . . . . . . . . . . . . . . . . . . . 8,299,157 9,996,406 10,429,629

Percent of total under CBERA includes CBTPA . . 40 47 43

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

69 The 24 countries designated for CBERA benefits are listed in table A-15.

70 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.

71 For a more detailed description of the 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.

72 President “Address Before the Permanent Council of the Organization of American States,”

Weekly Compilation of Presidential Documents, Mar. 1, 1982, #217-223.

73 For CBTPA provisions related to textiles and apparel, see “Textile and Apparel Related

Legislation” later in this chapter.

74 Only watches assembled from parts orginating in countries that are not eligible for NTR tariff

treatment were ineligible for duty-free treatment under CBERA.
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CBERA,75 imports under the program tripled from the prior year to $8.3 billion.

Imports continued to grow to $10.0 billion in 2002, and increased again to $10.4

billion in 2003.

Appendix table A-14 shows the leading 25 imports entering under CBERA in 2003.

Apparel products dominated the list. Fifteen products were knitted and not knitted

apparel, three products were petroleum derivatives, and the remaining seven

products were original CBERA items that had qualified for benefits under the program

before the advent of CBTPA. They included methanol, cigars, fresh fruit, raw sugar,

and automatic circuit breakers. Appendix tables A-14 and A-15 show imports under

the program by country.

U.S. Textile and Apparel Trade Program

Uruguay Round Agreement on Textiles and Clothing

The Agreement on Textiles and Clothing (ATC) came into force with the WTO Uruguay

Round Agreements in 1995 and called for the gradual elimination of quotas

established by the United States, Canada, Norway, and the European Union (EU)

under the 1974 Multifiber Arrangement (MFA). The ATC requires countries to

eliminate quotas and otherwise “integrate” textiles and apparel into the General

Agreement on Tariffs and Trade (GATT) in four stages over a 10-year transition period

ending on January 1, 2005.76 As shown in table 2-11, the major importing countries

integrated a total of 51 percent of their textile and apparel trade in the first three stages

(based on their 1990 import volumes), and are scheduled to integrate the remainder

on January 1, 2005.77 For quotas that were not eliminated in one of the first three

stages of integration, the ATC required the importing countries to increase the base

annual growth rates applicable to each such quota, specified in the bilateral MFA

agreements in place in 1994, by 16 percent in 1995, another 25 percent in 1998, and

another 27 percent in 2002 (the “growth-on-growth” provision).78

75 Imports under CBERA as enhanced by CBTPA had already begun to enter the United States in

December 2000.

76 The ATC integration process requires importing countries to bring textile and apparel articles

under GATT discipline, eliminate any quotas on such articles, and not establish new quotas on the

integrated articles, except as provided under normal GATT rules.

77 Trade groups in the United States, and 35 other countries have signed the “Istanbul Declaration”

calling for an extension of the quotas beyond January 1, 2005, partly because of concern over China’s

growing share of world textile markets. See American Manufacturing Trade Action Coalition (AMTAC),

“Istanbul Declaration,” found at http://www.amtacdc.com, retrieved May 7, 2004.

78 The quota growth rates vary by country and article, but ranged from less than 1 percent to as high

as 6 percent or 7 percent. Assuming a 6-percent base rate for a major supplier, the annual quota growth

rate would be 6.96 percent (6 multiplied by 1.16) during 1995-97, 8.7 percent during 1998-2001, and

11.05 percent during 2002-04.
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Table 2-11

Agreement on textiles and clothing: Stages, share of integrated trade,

and increase in quota growth rates

Stage

Share of

integrated trade

Increase in quota

growth rate1

1 (January 1, 1995 - December 31,1997) ............... 16 16

2 (January 1, 1998 - December 31, 2001) . . . . . . . . . . . . . . 17 25

3 (January 1, 2002 - December 31, 2004) . . . . . . . . . . . . . 18 27

4 (January 1, 2005 - Full integration) . . . . . . . . . . . . . . . . . 49 (2)

1 The acceleration of quota growth was advanced by one stage for “small suppliers” (supplying countries

accounting for 1.2 percent or less of an importing country’s total quotas as of December 31, 1991).

2 Not applicable.

Source: Agreement on Textiles and Clothing, Final Act Embodying the Results of the Uruguay Round of

Multilateral Trade Negotiations.

The ATC required importing countries to integrate articles from each of four groups of

products (tops and yarns, fabrics, made-up textile articles, and apparel); however, it

provided flexibility in the share that each group represented in each stage of

integration. The United States, Canada, and the EU have deferred integration of the

most sensitive articles until the end of the 10-year transition period.79

Under the U.S. integration schedule, none of the articles integrated in the first stage

was under quota, and most of the articles integrated in the second and third stages

either were not under quota or had low quota usage (table 2-11). As such, apparel

articles scheduled to be integrated at the end of the transition period represented 87

percent of U.S. apparel imports by quantity in 2002.80

U.S. Quota Activity

The United States in 2003 had quotas on textiles and apparel from 46 countries, which

accounted for 79 percent of U.S. imports of such goods by value (table 2-12). As

required by the ATC, the United States is scheduled to eliminate all its remaining quotas

on such goods from 38 WTO members on January 1, 2005.81 On January 1, 2005,

the United States will eliminate all such remaining quotas for those WTO members.

Quotas for Mexico were eliminated January 1, 2004 as required under the North

American Free Trade Agreement (NAFTA), and for Singapore on Jan. 1, 2004, as

required under the new U.S.-Singapore Free Trade Agreement (see below for more

detail). The United States imposed a ban on imports from Burma (a WTO country that

79 The United States deferred integration of the most sensitive textile and apparel articles until the

end of the 10-year transition period, as required by the U.S. Statement of Administrative Action

accompanying the Uruguay Round implementing legislation. See U.S. House of Representatives,

“Statement of Administrative Action,” The Uruguay Round Trade Agreements, Texts of Agreements

Implementing Bill, Supporting Statements, Message from the President of the United States, Sept. 27,

1994, House Doc. 103-316, vol. 1, p. 115.

80Apparel accounted for 79 percent of the total value of U.S. textile and apparel imports covered by

the former MFA in 2002 and 2003 (based on official statistics of the U.S. Department of Commerce).

81 The 38 WTO countries include Nepal, which became the 147th member of the WTO on Apr. 23,

2004.
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Table 2-12

Textiles and apparel: U.S. imports from trading partners with which the

United States had quotas in 2003

(Million dollars)

Country Imports

WTO members subject to the ATC:

Bahrain ................................................................ 188

Bangladesh ............................................................. 1,939

Brazil .................................................................. 406

Bulgaria ............................................................... 181

Burma1 ................................................................ 237

China ................................................................. 11,609

Colombia ............................................................... 539

Costa Rica .............................................................. 594

Czech Republic .......................................................... 23

Dominican Republic 2,128 .......................................................

Egypt .................................................................. 535

El Salvador ............................................................. 1,758

Fiji .................................................................... 80

Guatemala ............................................................. 1,773

Hong Kong ............................................................. 3,818

Hungary ............................................................... 54

India .................................................................. 3,212

Indonesia ............................................................... 2,376

Jamaica ................................................................ 105

Korea, Republic of 2,568 .......................................................

Kuwait ................................................................. 35

Macau ................................................................. 1,282

Macedonia ............................................................. 42

Malaysia ............................................................... 738

Nepal2 ................................................................ 155

Oman ................................................................. 132

Pakistan ................................................................ 2,215

Philippines .............................................................. 2,040

Poland ................................................................. 65

Qatar ................................................................. 85

Romania ............................................................... 114

Singapore3 ............................................................. 271

Slovak Republic .......................................................... 12

Sri Lanka .............................................................. 1,493

Taiwan ................................................................ 2,185

Thailand ............................................................... 2,072

Turkey ................................................................. 1,744

United Arab Emirates 279 .....................................................

Uruguay ............................................................... 14

Non-WTO countries subject to section 204 of the Agricultural Act of 1956:

Belarus ................................................................ 39

Cambodia .............................................................. 1,251

Laos .................................................................. 4

Russia ................................................................. 495

Ukraine ................................................................ 64

Vietnam ................................................................ 2,484

WTO Member subject to the North American Free Trade Agreement:

Mexico4 ............................................................... 7,941

1 The United States banned imports of all products from Burma in August 2003.

2 Nepal became the 147th Member of the WTO on April 23, 2004.

3 The United States eliminated quota restrictions on textile and apparel imports from Singapore on January 1,

2004, as required under the United States-Singapore Free Trade Agreement.

4 The United States eliminated all remaining quota restrictions on textile and apparel imports from Mexico on

January 1, 2004, as required under the North American Free Trade Agreement.

Source: Import data compiled from official statistics of the U.S. Department of Commerce, Office of Textiles

and Apparel.
2-28

had been subject to import quotas) effective August 28, 2003.82 Six countries covered

by U.S. textile and apparel quotas are not WTO members and, therefore, will not be

eligible for ATC quota liberalization until they join the WTO.83 One of these countries

(Cambodia) was approved for WTO membership in 2003; however, the process of

ratification in the Cambodian Parliament is still pending.84 Another non-WTO quota

country (Vietnam) is seeking to join the WTO.85

China

China became eligible for ATC benefits upon its WTO accession on December 11,

2001. The WTO Accession Agreement of China enabled the country to “catch up”

immediately with the ATC integration schedule of other WTO countries. However,

China’s WTO Accession Agreement permits the United States and other WTO

countries to impose safeguard measures, or quotas, on imports of GATT-integrated

textile and apparel articles from China through the end of 2008. This “textile

safeguard” provision allows WTO countries that believe imports of Chinese textiles

and apparel are, due 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. Upon receipt of such a request, the textile

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 during the first 12

months of the most recent 14 months preceding the request for consultations.

On December 24, 2003, the United States requested consultations with China under

the textile safeguard provisionfor three groups of cotton and manmade-fiber products

already integrated into the GATT: knit fabrics (category 222), brassieres and other

body-supporting garments (349/649), and dressing gowns and robes (350/650).86

The two countries could not agree on quota levels for these goods within 90 days of the

request for consultations, or by March 24, 2004. Thus, the United States will continue

the quotas until the end of the 12-month period, until December 23, 2004.

Cambodia and Vietnam

The United States and Cambodia signed a Memorandum of Understanding on

December 31, 2001, which extended their bilateral agreement for an additional three

82 U.S. Department of Homeland Security, Bureau of Customs and Border Protection, “U.S. Trade

Embargo Against Burma,” public notice, Sept. 10, 2003, found at http://www.cbp.gov, retrieved Dec.

15, 2003.

83 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.

84 World Trade organization, “WTO Membership Rises to 147,” WTO News, April 23, 2004,

found at http://www.wto.org, retrieved May 7, 2004.

85 Ibid.

86 Information on the safeguard actions is available in three notices of the Committee for the

Implementation of Textile Agreements (CITA), published in the Federal Register of Dec. 29, 2003 (68 FR

74944-74949).
2-29

years, through December 31, 2004, and provided for an increase in the quota of up to

18 percent, compared with 14 percent in the 1999 agreement for full compliance with

international labor standards. As such, the United States increased Cambodia’s

quotas by 12 percent for 2003 and by 14 percent for 2004, in addition to the normal

quota increases of 6 percent granted to most products. According to the U.S. Embassy

in Cambodia, the country was granted a 14-percent quota increase in 2004 “in

recognition of Cambodia’s efforts and accomplishments in respecting worker rights in

the garment sector in 2003,” but it is “concerned about certain persistent and

widespread problems, including correct payment of wages, involuntary and excessive

overtime and anti-union discrimination.”87

U.S. imports of textiles and apparel from Vietnam came under quota for the first time

effective May 1, 2003.88 Imports of such goods from Vietnam have greatly expanded

since the United States granted the country normal-trade-relations (NTR) status in

December 2001, rising from $49 million in 2001 to $2.5 billion in 2003 (NTR status

means that imports of goods from Vietnam are now subject to much lower rates of

duty). According to a trade report, the United States is the major market for Vietnam’s

textile and apparel exports, accounting for two-thirds, or $2.4 billion, of Vietnam’s

total exports of $3.7 billion in 2003.89

Quota Availability in 2004

The “flexibility provisions” in U.S. bilateral textile agreements permit exporting

countries, under certain conditions, to transfer unused portions of quotas between

products and between years.90 U.S. apparel importers and retailers have expressed

concern about the availability of quotas for key products in 2004, because exporting

countries will not be able to “carry forward” or borrow quota from 2005. Since there

are no quotas in 2005 against which to borrow. Moreover, although the United States

increased quota levels for 2004 as required under the ATC “growth-on-growth”

provision, many of the quotas not available in 2004 are lower than they otherwise

would be because of the use of carryforward in 2003, when exporting

87 U.S. Embassy, Phnom Penh, “U.S.-Cambodia Bilateral Textile Agreement Quota Bonus Decision

for 2004,” press report, Dec. 3, 2003, found at http://usembassy.state.gov/cambodia/

wwwh0060.html, retrieved Feb. 4, 2004.

88 The bilateral textile agreement with Vietnam was initialed on April 25, 2003, and signed on July

17, 2003. See Federal Register notices of CITA, “Establishment of Import Limits for Certain . . . Textile

Products Produced or Manufactured in the Socialist Republic of Vietnam,” May 16, 2003 (68 FR 26575),

and “Establishment of an Export Visa Arrangement for Certain . . . Textile Products Produced or

Manufactured in Vietnam,” July 30, 2003 (68 FR 44748).

89 Information was attributed to BharatTextile.com in World Trade\Interactive, (a publication of

Sandler, Travis & Rosenberg, P.A.,Washington, DC), “Vietnam Raises Quota Fees for Shipments to U.S.,”

Feb. 17, 2004.

90 The flexibility provisions for unused portions of quotas include carryover (from the prior year to

the current year within the same product category), carryforward (from the subsequent year to the

current year within the same product category), and swing (from one product category to another

product category within the same year).
2-30

countries borrowed against their 2004 quotas.91 The United States reportedly

rejected requestsfrom U.S. apparel importers and retailers to increase apparel quotas

in 2004 in order to make up for the loss of carryforward.92 Carryforward also is not

available for non-WTO countries whose bilateral textile agreements expire at the end

of 2004, including Cambodia, Laos, Russia, Ukraine, and Vietnam, unless their

agreements are extended beyond 2004.

Tariff Rate Disputes

Egypt

The United States requested WTO Dispute Settlement Understanding consultations

with Egypt on December 23, 2003, stating that Egypt applied specific import duties on

a number of textile and apparel articles that exceeded its bound rates of duty.93 In the

official communication to the Government of Egypt and to theWTO Dispute Settlement

Body, the United States stated that when Egypt removed its prohibition on imports of

apparel and made-up textile products by January 1, 2002, it had agreed to bind its

import duties on apparel classified under HS chapters 61 and 62 at a rate of 46

percent ad valorem for 2003, 43 percent for 2004, and 40 percent thereafter.

According to the communication, on December 31, 2001, Egypt implemented duties

that were specific to each piece of clothing, rather than ad valorem rates, resulting in

ad valorem duty equivalents ranging from 141 percent to 51,296 percent. On January

21, 2004, Egypt issued a decree that established an ad valorem rate on apparel of 40

percent in place of the specific duty rates. Egypt also reduced its duties on textiles, from

30 percent to 12 percent ad valorem for yarns, from 54 percent to 22 percent for

fabrics, and from a per piece duty levy to 35 percent for home textiles.94

Free Trade Agreements with Chile and Singapore

On January 1, 2004, the United States implemented separate free trade agreements

(FTAs) with Chile and Singapore, which together accounted for less than 0.5 percent of

91A trade report stated that for cotton knit shirts (categories 338/339), the 2004 quota for China is

2.4 percent lower than the 2003 quota, even though its allowable annual quota growth rate is 0.6

percent, while the quota for Bangladesh is 5.5 percent higher, even though its allowable annual quota

growth rate is 12.9 percent. See Global Trade Advisor, “Carryforward for 2004,” issued by IBERC (a

division of Sandler, Travis & Rosenberg, P.A., Washington, DC), Jan. 16, 2004, p. 2.

92 “U.S. Rejects Importer Calls to Increase 2004 Apparel Quotas,” Inside US Trade, Jan. 23, 2004.

93 WTO, Request for Consultations by the United States, “Egypt - Measures Affecting Imports of

Textile and Apparel Products,” WT/DS305/1, Jan. 6, 2004, found at http://docsonline.wto.org.

94 Information on Egyptian tariffs is from U.S. Commercial Service, International Market Insight,

Feb. 4, 2004, found at http://www.buyusa.info.net, retrieved Feb. 27, 2004, and from Egypt’s Ministry

of Foreign Trade, “Egypt’s . . . Tariffs,” found at http://www.economy.gov.eg/english/ftrade/index.stm,

retrieved Feb. 3, 2004.
2-31

total U.S. textile and apparel imports in 2003.95 Both FTAs provide for the immediate

elimination of duties and quotas on textiles and apparel that meet the rules of origin

specified in the FTAs (“originating goods”).96 The rules of origin for textiles and

apparel in both FTAs were modeled after those in NAFTA, and require that imports of

most articles from the FTA partner be assembled from inputs made either in the

respective partner country there or in the United States, generally from the yarn stage

forward. Under this “yarn forward” rule, only the fibers may be from third countries.97

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.

Both FTAs contain a de minimis foreign content rule, in which up to 7 percent of the total

weight of the originating good can 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 party.

Both FTAs 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 (1) 2 million square meter equivalents (SMEs) of non-originating

cotton and man-made-fiber apparel for the first 10 years and 1 million SMEs

thereafter, and (2) 1 million SMEs of non-originating cotton and man-made-fiber

fabrics.98 will be reduced in equal increments over a 5-year period, reaching zero in

2008. The Singapore TPL covering non-originating cotton and manmade-fiber

apparel, will expire after 8 years. The TPL quantity of 25 million SMEs in 2004 will be

reduced by 3.125 million SMEs each year thereafter, reaching zero in 2012.99

The FTAs with Chile and Singapore set forth provisions for cooperation to prevent

prevention of circumvention with obligations on the governments of these countries to

monitor trade and ensure compliance. If an FTA party believes that the other is not in

compliance with the terms of the FTA with respect to textiles and apparel, it can request

consultations (e.g., the United States can apply quotas to goods made in the FTA

partner or revoke preferential benefits for particular firms or products).100

95 For further information on the FTAs with Singapore and Chile, see chapter 4 of this report. Chile is

a very small supplier of textiles and apparel to the United States, with shipments totaling $12 million in

2003, while imports of such goods from Singapore have fallen by half since the early 1990s to $271

million.

96 The United States had applied import quotas on textiles and apparel from Singapore, but not

Chile.

97 In general, the manufacturing progression in the textile sector is: (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.

98 Once imports reach the levels established under the TPLs, they will be subject to the higher NTR

rates of duty.

99 “Singapore Free Trade Agreement”; found at http://www.usitc.gov, retrieved May 15, 2004.

100 The duties under the TPL are reduced to zero over a 5-year period.
2-32

Proposed Free Trade Agreements

The United States has concluded negotiations for several other free trade agreements

with countries that are either major suppliers of textiles and apparel to the U.S. market

or for which textiles and apparel represent a significant portion of their exports. The

United States concluded negotiations for the Central America Free Trade Agreement

(CAFTA) with El Salvador, Guatemala, Honduras, and Nicaragua on December 17,

2003, and with Costa Rica on January 25, 2004. In addition, the United States

completed FTA negotiations with the Dominican Republic on March 15, 2004, and will

integrate that agreement into the CAFTA.101 The CAFTA countries, including the

Dominican Republic, accounted for 12 percent of U.S. imports of textiles and apparel

by value in 2003, and these products accounted for 39 percent of that region’s exports

to the United States in 2003 (table 2-13). The United States also concluded negotiations

on FTAs with Australia (February 8, 2004) and Morocco (March 2, 2004).102

Table 2-13

U.S. imports of textiles and apparel from countries in FTA negotiations with

the United States and their share of total U.S. imports from these countries,

2003, and the share of these countries’ total exports accounted for by

textiles and apparel, 2002

Country or region

U.S.

Imports,

2003

Share of the

value

of U.S. imports

accounted for by

textiles and

apparel

Share of total value

of country or

region’s exports

accounted for by

textiles and

apparel, 2002

Million

dollars

Percentage share

CAFTA countries1 . . . . . . . . . . . . . . . . . . . 7,167 9.2 36.5

Dominican Republic1 . . . . . . . . . . . . . . . . 2,128 2.7 48.0

Morocco1 . . . . . . . . . . . . . . . . . . . . . . . . . 77 0.1 34.8

Bahrain . . . . . . . . . . . . . . . . . . . . . . . . . . 188 0.2 12.7

Australia1 . . . . . . . . . . . . . . . . . . . . . . . . 234 0.3 1.2

SACU countries . . . . . . . . . . . . . . . . . . . . 836 1.1 3.0

Andean countries . . . . . . . . . . . . . . . . . . 1,107 1.4 5.6

Panama . . . . . . . . . . . . . . . . . . . . . . . . . . 5 0.1 7.3

Thailand . . . . . . . . . . . . . . . . . . . . . . . . . 2,072 2.7 8.2

1 The United States has concluded FTA negotiations with the specified country or countries, although these

FTAs have not yet been entered into effect.

Source: U.S. import data compiled from official statistics of the U.S. Department of Commerce; country

and regional export data based on official statistics of the United Nations. Export data represent world

imports from the selected countries or regions in 2002.

101 USTR press release, “U.S. & Dominican Republic Conclude Trade Talks Integrating the

Dominican Republic into the Central America Free Trade Agreement,” Mar. 15, 2004, retrieved Mar. 16,

2004, found at http://www.ustr.gov.

102 USTR press releases, “U.S. and Australia Complete Free Trade Agreement,” Feb. 8, 2004, and

“U.S. and Morocco Conclude Free Trade Agreement,” Mar. 2, 2004, found at http://www.ustr.gov,

retrieved Mar. 3, 2004.
2-33

The United States has ongoing FTA negotiations with Bahrain and with the South

African Customs Union (SACU), which comprises Botswana, Lesotho, Namibia, South

Africa, and Swaziland. U.S. textile and apparel imports from SACU countries totaled

$836 million in 2003, representing an increase of 82 percent from 2001, the first full

year of AGOA benefits for eligible countries in sub-Saharan Africa. The United States

also has announced its intention to negotiate FTAs with the Andean countries (Bolivia,

Colombia, Ecuador, and Peru), Thailand, and Panama.103 The Andean countries, like

the SACU countries and Panama, already benefit from U.S. trade preferences, as

discussed below.

Trade Preference Programs

The United States provides preferential market access for imports of textiles and

apparel under the United States-Caribbean Basin Trade Partnership Act (CBTPA) and

the African Growth and Opportunity Act (AGOA), which were implemented in

October 2000, and the Andean Trade Promotion and Drug Eradication Act

(ATPDEA), implemented in October 2002.104 Under these programs, the United

States provides duty-free and quota-free access to the U.S. market for apparel made

in beneficiary countries from U.S. yarns and fabrics. The programs also grant

duty-free benefits to specified quantities of apparel made of “regional fabrics.” Under

the CBTPA regional fabric provision, the trade benefits are limited to knit apparel

made in eligible beneficiary countries from fabrics knitted in the region of U.S. yarns.

The ATPDEA provides unlimited duty-free treatment to apparel made in beneficiary

countries from regional fabrics in chief value of llama, alpaca, or vicuña, and grants

duty-free benefits to specified quantities of other knit or woven garments made of U.S.

or regional yarns. The AGOA also grants duty-free benefits to specified quantities of

knit and woven apparel made in beneficiary countries from regional fabrics of U.S. or

regional yarns. However, AGOA also allows apparel made in lesser-developed

beneficiary countries from third-country (e.g., Asian) fabrics to enter free of duty

under this regional fabric “cap.” This third-country fabric provision is currently set to

expire on September 30, 2004. As shown in table 2-14, duty-free imports under these

U.S. trade programs accounted for most U.S. textile and apparel imports from the

beneficiary countries in 2003.

103 USTR press releases, “USTR Notifies Congress of Intent to Initiate Free Trade Talks with Andean

Countries,” Nov. 18, 2003; “USTR Notifies Congress of Intent to Initiate Free Trade Talks with Thailand,”

Feb. 12, 2004; and “USTR Notifies Congress of Intent to Initiate Free Trade Talks with Panama,” Nov. 18,

2004, found at http://www.ustr.gov.

104 The Trade Act of 2002, contained a number of significant enhancements of AGOA and the

CBTPA. For further information on these changes, see USITC, The Year in Trade: OTAP, 54th Report,

USITC publication 3630, Aug. 2003, pp. 2-33 and 2-34-2-36.
2-34

Table 2-14

Textiles and apparel: U.S. imports from Caribbean Basin, Sub-Saharan

African, and Andean countries, total and duty-free imports under special

U.S. trade programs, 20031

Item

Caribbean

Basin

SubSaharan

Africa

Andean

region

Duty-free imports under special trade programs:

Articles of U.S. fabrics (million dollars) . . . . . . . . . . . . . . . . . . 5,356.4 7.2 55.2

Articles of regional fabrics (million dollars) . . . . . . . . . . . . . . . 740.1 242.9 693.3

Articles of third-country fabrics (million dollars) . . . . . . . . . . . . 151.3 947.0 8.0

Total (million dollars) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,247.8 1,197.1 756.5

Total imports of textiles and apparel (million dollars) . . . . . . . . . . 9,676.3 1,527.3 1,107.4

Share of duty-free imports to total imports (percent) .......... 652 78 68

1 The special trade programs include the CBTPA for the Caribbean Basin countries, the AGOA for

sub-Saharan African countries, and the ATPDEA for the Andean countries.

2 Excludes apparel imports from Caribbean Basin countries of $1,064.3 million in 2003 that were eligible

for a partial duty exemption under heading 9802.00.80 of the Harmonized Tariff Schedule of the United States

(HTS). Under this provision, U.S. importers receive a partial duty exemption for articles assembled abroad in

whole or in part of U.S. components. In general, the duty is assessed only on the value added abroad (mainly

the cost of sewing the garment parts together and the value of non-fabrics and fasteners). The fabrics for

making the garment parts can be either U.S. or foreign origin as long as the fabric is cut to shape in the United

States, exported ready for assembly, and not advanced in value abroad except by assembly and incidental

operations.

Source: Compiled from official statistics of the U.S. Department of Commerce, found at

http://otexa.ita.doc.gov.

U.S. Textile and Apparel Trade in 2003

U.S. imports of textiles and apparel in 2003 grew 10 percent over the 2002 level to

42.2 billion square meter equivalents (SMEs) (valued at $77.4 billion). The growth

mainly reflected a substantial increase in imports from China, whose shipments rose

67 percent, or 3.3 billion SMEs, to 8.3 billion SMEs ($11.6 billion). China’s shipments

had increased 125 percent in 2002, the first full year that it became eligible for ATC

quota liberalization, enabling the country to surpass NAFTA signatories Mexico and

Canada as the largest foreign supplier. The share of total U.S. textile and apparel

imports accounted for by China rose to 19.6 percent in 2003 from 13.0 percent in

2002. The increase in China’s shipments was concentrated in goods for which quotas

were eliminated, namely textile luggage, up by 55 percent, or 372 million SMEs;

babies’ garments, up by 105 percent, or 198 million SMEs; and robes and dressing

gowns of cotton and manmade fibers, up 51 percent, or 85 million SMEs.

U.S. textile and apparel imports from Vietnam continued to grow substantially in

2003, rising by 131 percent over the 2002 level, or 469 million SMEs to 827 million

SMEs ($2.5 billion). Vietnam emerged as a significant supplier of apparel only since

December 2001, when the United States granted NTR status to the country (see earlier

discussion). In 2003, Vietnam was the eighth-largest volume supplier of apparel,

which accounts for almost all of its shipments of textiles and apparel in terms of value.

U.S. textile and apparel imports from Mexico and Canada, the largest volume

suppliers after China, declined by 9 percent and 2 percent, respectively, in 2003.
2-35

Imports of textiles and apparel from Mexico in 2003 of 3.9 billion SMEs ($7.9 billion)

were equivalent to less than one-half of the volume of imports from China. U.S. textile

and apparel imports from Mexico peaked in 2000 at 4.7 million SMEs. The decline in

imports from Mexico since 2000 is partly attributable, at least initially, to NAFTA

restrictions on the use of duty drawback, which went into effect in 2001.105 Duty

drawback had permitted the refund of duties paid on certain imported apparel

components that did not have to originate in a NAFTA country, including non-visible

interlinings and other trim. Among other major suppliers, increases occurred in

imports from Pakistan, Korea, the EU, and India, while declines occurred in imports

from Taiwan, Indonesia, Bangladesh, Thailand, Turkey, Hong Kong, the Philippines,

and Sri Lanka.

U.S. textile and apparel imports from countries benefitting from preferential market

access rose in 2003, including those from the Caribbean Basin, sub-Saharan Africa,

and the Andean region. Imports rose by 6 percent from Caribbean Basin countries, to

4.0 billion SMEs; 37 percent from sub-Saharan Africa, to 418 million SMEs; and 28

percent from Andean countries, to 247 million SMEs.

105 Stephen Lamar, Senior Vice President, American Apparel & Footwear Association, Arlington,

VA, interview by Commission staff, Feb. 10, 2004.

3-1

CHAPTER 3:

Selected Trade Developments in the

WTO, OECD, and APEC

World Trade Organization

Doha Trade Negotiations and Cancun Ministerial

Conference

In 2003, members of the World Trade Organization (WTO) continued multilateral

trade negotiations, launched in part under provisions of the 1986-1992 Uruguay

Round and in part under the 2001 Doha Development Agenda (DDA).1 However, at

the WTO Fifth Ministerial Conference held in Cancun, Mexico, in September 2003,

participants were unable to agree on how to move forward with negotiations,

spending the remaining months of 2003 in consultations on how to renew these trade

talks.

At Cancun, ministers were to review progress made to date, and to set specific terms

and structure (negotiating “modalities”) for individual negotiating groups that would

allow for these groups to conduct negotiations during 2004 so that the Doha trade

talks could conclude by January 1, 2005. Instead, negotiators found themselves

unable to complete modalities for the negotiating area of agriculture, as well as

nonagricultural market access. Negotiators subsequently found themselves at a

further impasse over a group of issues referred to collectively as the “Singapore

issues”–four new topics covering trade-related investment, competition policy,

transparency in government procurement, and trade facilitation.2 As a result, the

conference ended without reaching a consensus.

The ministerial statement concluding the Cancun conference directed officials of the

participating governments to continue work on outstanding issues, in coordinationwith

the WTO Director-General and the chairman of the WTO General Council. The

statement called for a WTO General Council meeting at the senior official level by

1Negotiations launched under a number of mandates from the Uruguay Round Agreements can be

found in WTO, Trade Negotiations Committee, Final Act Embodying the results of the Uruguay Round of

Multilateral Trade Negotiations, Marrakesh, Apr. 15, 1994. Negotiations launched under the Doha

Development Agenda can be found in WTO, Ministerial Conference, Fourth Session, Ministerial

Declaration–Adopted on November 14, 2004, WT/MIN(01)/DEC/1, Nov. 20, 2001.

2 So-called because these issues were raised initially at the WTO First Ministerial Conference held in

Singapore in 1996.
3-2

December 15, 2003, so that ministers could move toward a “successful and timely

conclusion of the negotiations.”3 During the remainder of 2003, the WTO General

Council chairman held consultations with WTO members, reporting at the December

meeting that although members affirmed their commitment to enter into substantive

negotiations there appeared as yet no concrete sign of this commitment, such as more

flexible negotiating positions.4 Thus, at the beginning of 2004, unresolved issues from

the Cancun conference appeared to remain as efforts to resume negotiations under

the Doha Development Agenda continued.

Negotiating Developments before Cancun

During 2002 and 2003, negotiators worked toward developing negotiating

modalities for their respective groups,5 although largely without success. Agriculture

negotiators were slated to reach agreement on a first draft by March 31, 2003, but the

chairman confirmed at that deadline that the group had failed to reach a set of

common modalities. He stated, moreover, that there was no basis to attempt another

draft without guidance from participants on possible areas of convergence.6

Due to a number of factors, the Negotiating Group on Market Access did not meet the

target date of May 31, 2003 for agreement on negotiating modalities that would

structure their negotiations on reductions in tariff and nontariff barriers, although it

continued to focus on this issue in the lead up to Cancun.7 The group chairman noted

clear divergences among participants over several issues regarding the tariff cutting

formula under discussion, and also noted that the views of participantswere clearlyfar

apart at the moment on the question of possible sectoral initiatives, but would

nonetheless continue to revise the group’s draft element of modalities for further

consideration as discussions advanced.8

3 WTO, “Ministerial Statement,” taken from WTO, “Day 5: Conference ends without consensus,”

WTO Summary of September 14, 2003, found at Internet address http://www.wto.org/, retrieved Sept.

17, 2003.

4 WTO, “Statement by the Chairperson of the General Council December 15-18, 2003,” found at

Internet address http://www.wto.org/, retrieved on Mar. 26, 2004.

5 The negotiating groups in the Doha Round were set up as either newly created negotiating groups

or as special session meetings of existing WTO committees, as follows: (1) Committee on Agriculture,

Special Session; (2) Council for Trade in Services (CTS), Special Session; (3) Council for Trade-Related

Aspects of Intellectual Property Rights (TRIPs), Special Session; (4) Dispute Settlement Body (DSB), Special

Session; (5) Committee on Trade and Environment (CTE), Special Session; (6) Committee on Trade and

Development (CTD), Special Session; (7) Negotiating Group on Non-Agricultural Market Access, and (8)

Negotiating Group on Rules.

6 World Trade Organization, Committee on Agriculture – Special Session, Eighteenth Special

Session of the Committee on Agriculture – Report by the Chairman, Stuart Harbinson, to the Trade

Negotiations Committee, TN/AG/9, Apr. 8, 2003, found at Internet address

http://docsonline.wto.org/, retrieved on Mar. 26, 2004.

7World Trade Organization, Trade Negotiations Committee, Report by the Chairman of the Trade

Negotiations Committee to the General Council, TN/C/3, July 23, 2003, found at Internet address

http://docsonline.wto.org/, retrieved on May 13, 2004.

8 World Trade Organization, Trade Negotiations Committee, Minutes of Meeting – Held in the

Centre William Rappard on 14-15 July 2003, TN/C/M/11, Feb. 2, 2004, found at Internet address

http://docsonline.wto.org/, retrieved on May 13, 2004.
3-3

Progress appeared more forthcoming in the services negotiations, as initial requests

for market access in services made during 2002 were joined by initial offers tabled in

early 2003.9 The services negotiating group also adopted a draft text of Modalities

for the Treatment of Autonomous Liberalization in March 2003, a portion of its

negotiating agenda.10

The chairman overseeing intellectual property negotiations noted in February 2003

that delegations’ positions remained quite divided at the end of 2002,11 even though

these negotiations, mandated under the 1994 Uruguay Round Agreements, are

circumscribed largely to developing a multilateral system of notification and

registration of geographical indications for wines and spirits. Under a separate

mandate from the 2001 Doha ministerial conference, negotiators concluded and

adopted the Decision of the TRIPS Agreement and Public Health,12 described below.

Of major concern to developing country WTO members, the deadline to reach

recommendations regarding special and differential treatment also reached an

impasse in February 2003 despite several extensions during 2002.13

TRIPS decision on pharmaceutical imports

WTO members adopted the Decision of the TRIPS Agreement and Public Health on

August 30, 2003, a decision that allows developing countries–in particular least

developed countries–greater access toneeded categories of vital medicineswhen their

governments are faced with widespread outbreaks that threaten public health.14

Negotiators were tasked by the 2001 Doha Declaration on the TRIPS Agreement and

Public Health15 to find an expeditious solution to the difficulties faced by WTO

members possessing insufficient or no manufacturing capacity in the pharmaceutical

sector when confronted with public health crises that constitute a national

emergency–specifically involving human immunovirus/acquired immune deficiency

9 Ibid.

10 World Trade Organization, Council for Trade in Services – Special Session, Modalities for the

Treatment of Autonomous Liberalization – Adopted by the Special Session of the Council for Trade in

Services on 6 March 2003, TN/S/6, Mar. 10, 2003, found at Internet address

http://docsonline.wto.org/, retrieved on Mar. 26, 2004.

11 World Trade Organization, Council for Trade-Related Aspects of Intellectual Property Rights –

Special Session, Fifth Special Session of the Council for TRIPS – Report by the Chairman, Ambassador

Eui-yong Chung, to the Trade Negotiations Committee, TN/IP/5, Feb. 28, 2003, found at Internet

address http://docsonline.wto.org/, retrieved on Mar. 26, 2004.

12 World Trade Organization, “Implementation of Paragraph 6 of the Doha Declaration on the

TRIPS Agreement and Public Health — Decision of 30 August 2003,” WT/L/540, Sept. 1, 2003, found at

Internet address http://docsonline.wto.org/, retrieved on Mar. 26, 2004.

13 World Trade Organization, Committee on Trade and Development, Special Session, Special

Session of the Committee on Trade and Development – Report by the Chairman, Ambassador Ransford

Smith (Jamaica), to the Trade Negotiations Committee, TN/CTD/8, Mar. 4, 2003, found at Internet

address http://docsonline.wto.org/, retrieved on May 13, 2004.

14 WTO, “TRIPS Agreement and Public Health — Decision of 30 August 2003,” WT/L/540.

15 WTO Ministerial Conference — Fourth Session, Declaration of the TRIPS Agreement and Public

Health — Adopted on 14 November 2001, WT/MIN(01)/DEC/2, Nov. 20, 2001, found at Internet

address http://docsonline.wto.org/, retrieved on Mar. 26, 2004.
3-4

syndrome (HIV/AIDS), tuberculosis, malaria, or similar epidemics of extreme

urgency.

The 2003 decision sets up a system that allows an eligibleWTO member to obtainfrom

an eligible exporting WTO member the needed pharmaceutical supplies to address

public health problems that constitute an urgent national situation.16 Least developed

country WTO members may automatically avail themselves of this pharmaceutical

import system, whereas other developing countryWTO members must notify the TRIPS

Council of a national emergency or circumstances of extreme urgency that require a

patented medicine for public, noncommercial use. The importing member must (1)

notify the TRIPS Council requiring the specific product names and expected quantities

needed, (2) confirm that it has insufficient manufacturing capacity in its

pharmaceutical sector to produce this product, and (3) grant a compulsory license

under TRIPS Art. 3117 for a patented pharmaceutical product within its territory.

The exporting member must also issue a compulsory license that confirms that only the

amount necessary to meet the import’s member need will be manufactured under that

license, and that the entirety of the production will be exported to eligible importing

members who have notified their needs to the TRIPS Council. The exporting member

must confirm that the products manufactured under compulsory license will be marked

or labeled specifically through special packaging, coloring, or shape. The exporting

member must also establish an Internet website that posts the quantities supplied to

each importer and the distinguishing product features. The exporting member must

notify the TRIPS Council of the award of the compulsory license, giving the name and

address of the licensed firm, products and quantities covered by the license, duration

of the license, and the countries to be supplied with the product. The exporting member

must pay adequate remuneration, although the importing member’s obligation to pay

remuneration will be waived under the decision. However, the importing member is

expected to take reasonable measures within its means to prevent the reexport of these

pharmaceutical products manufactured under compulsory license.

The decision includes provisions for developing country WTO members to take

advantage of possible economies of scale and consequent enhanced purchasing

power if they belong to a regional trade agreement. WTO members agree not to

challenge through WTO dispute-settlement procedures any measures taken in line

with this decision. The TRIPS Council is to prepare an amendment to the TRIPS

Agreement that would incorporate this decision into the agreement.

Cancun Ministerial Conference

The WTO Fifth Ministerial Conference took place in Cancun, Mexico, September

10-14, 2003. The conference chairman, Luis Ernesto Derbez, Minister of Foreign

16 WTO, “TRIPS Agreement and Public Health — Decision of 30 August 2003,” WT/L/540.

17 TRIPS Art. 31 is entitled “Other Use Without Authorization of the Right Holder.”
3-5

Relations for Mexico, named five facilitators on the opening day to oversee discussions

on the major subjects of (1) agriculture, (2) nonagricultural market access, (3)

development issues, (4) the “Singapore” issues, and (5) other issues, which included

the question of a geographical indications registry for wines and spirits being

negotiated under the TRIPS Agreement.18

An early debate arose at the conference when Benin, Burkina Faso, Chad, and Mali

tabled a proposal on the subject of cotton.19 A WTO summary of the conference

indicates that the cotton proposal or initiative “describes the damage that the four

believe has been caused to them by cotton subsidies in richer countries, calls for the

subsidies to be eliminated, and for compensation to be paid to the four while the

subsidies are being paid out to cover economic losses caused by the subsidies.”20 A

number of conference delegations supported the initiative in large part because the

proposal sought a competitive solution within the framework of the multilateral trading

system rather than by means of preferences or special and differential treatment. The

United States proposed discussions that addressed distortions throughout the cotton

production chain, including subsidies, but also tariff and nontariff barriers to trade in

cotton, government policies that support synthetic fiber production, and the like.

An important impediment to progress at the conference proved to be negotiations over

agriculture, with the facilitators reporting in the first days that progress in their other

groups appeared linked to progress in the agriculture group. In the agriculture group,

exchanges centered on discussions held between three main countries or groups of

countries (1) the United States, (2) the European Union (EU), and (3) the Group of 20

(G-20), a recent grouping of approximately 20 developing countries.21 Discussions in

18 Reporting based largely on WTO daily summaries of the Cancun ministerial conference —

“Summary of 10 September 2003 — Conference kicks off with facilitators’ named and cotton debated;”

“Summary of 11 September 2003 — Cambodia and Nepal membership sealed as ministers start

negotiations;” “Summary of 12 September 2003 — Day 3: Facilitators’ start work on new draft

declaration;” “Summary of 13 September 2003 — Day 4: As ministers comment on new draft,

chairperson warns of dangers of failure;” and “Summary of 14 September 2003 — Day 5: Conference

ends without consensus,” found at http://www.wto.org, retrieved Sept. 15, 2003.

19 World Trade Organization, Ministerial Conference, Fifth Session, Poverty Reduction: Sectoral

Initiative in Favour of Cotton – Joint Proposal by Benin, Burkina Faso, Chad and Mali,

WT/MIN(03)/W/2*, Aug. 15, 2003; and Addendum, WT/MIN(03)/W/2/Add.1, Sept. 3, 2003, found

at Internet address http://docsonline.wto.org/, retrieved on Mar. 26, 2004.

20 WTO, “Cotton proposal,” from WTO, “Summary of 10 September 2003.”

21 G-20 membership has varied. In September 2003, membership counted approximately 22

countries: Argentina, Bolivia, Brazil, Chile, China, Colombia, Costa Rica, Cuba, Ecuador, Egypt, El

Salvador, Guatemala, India, Mexico, Nigeria, Pakistan, Paraguay, Peru, Philippines, South Africa,

Thailand, and Venezuela. At the G-20 ministerial meeting in December 2003, membership counted

approximately 18 countries: Argentina, Bolivia, Brazil, Chile, China, Cuba, Egypt, India, Indonesia,

Mexico, Nigeria, Pakistan, Paraguay, Philippines, South Africa, Tanzania, Venezuela, and Zimbabwe.

Members of the U.S. delegation indicate that the G-20 was formed at the Cancun ministerial in response

to the US/EU agricultural framework that was put forward to help break the impasse reached in

agricultural negotiations. U.S. negotiators further noted that the G-20 membership does not appear to be

composed of countries uniformly in favor of agricultural liberalization, although the group initially came

together over the issue of agricultural reform. U.S. Department of State telegram, ”WTO Doha

Negotiations: Post-Cancun Q’s and A’s,” prepared by U.S. Department of State, Washington DC,

message reference No. 280925, Oct. 1, 2003.
3-6

the agriculture group advanced but, with participants unable to agree over subsidy

reductions, the group could not complete its work to establish negotiating modalities.

Similarly, work in the nonagriculture market access group also advanced but, unable

to agree over the tariff cutting formula to be used, the group was ultimately

unsuccessful in reaching agreement on negotiating modalities for its group either.

Finally, the conference stalled over the issue of how to proceed in addressing the four

Singapore issues.22

The conference chairman closed the meeting when it became clear that there was no

consensus on the final day.23 A six-paragraph ministerial statement was approved

and issued that instructed members’ officials to “continue working on outstanding

issues ... taking ... into account the views expressed at the conference.” The ministerial

statement asked the WTO Director-General and the WTO General Council chairman

to coordinate this work, and to convene a WTO General Council meeting at senior

officials level no later than December 15, 2003, intended to permit WTO members “to

take the action ... necessary ... to enable us to move towards a successful and timely

conclusion of the negotiations.”24

Negotiating Developments after Cancun

Following Cancun, the WTO Director-General and General Council chairman held

initial consultations with member governments, followed by two rounds of intensive

consultations on the four critical issues emerging from the Fifth Ministerial Conference:

(1) agriculture, (2) the cotton initiative, (3) nonagricultural market access, and (4) the

Singapore issues. General Council chairman Castillo reported informally to the heads

of delegations in Geneva, giving his overall assessment of his consultations and his

view of the way forward on December 15, 2003, as called for in the ministerial

statement at the end of the Cancun conference. The chairman found overall during his

consultations that members were constructive, affirming their commitment to enter into

substantive negotiations, but that nonetheless no concrete manifestations of this

commitment were apparent as yet in more flexible negotiating positions.25 The

22 U.S. Department of State telegram, “Results of Fifth WTO Ministerial in Cancun Mexico,”

prepared by U.S. Department of State, Washington DC, message reference No. 263630, Sept. 15,

2003.

23 WTO, “The Ministerial Statement,” from WTO, “Day 5: Conference ends without consensus.”

24 Ibid. The WTO General Council chairman for 2003, Carlos Perez del Castillo, developed the

initial draft of the Cancun ministerial declaration in July 2003, containing substantial bracketed text

where ministerial decision would be required at Cancun. See Preparations for the Fifth Session of the

Ministerial Conference – Draft Cancún Ministerial Text, JOB(03)/150, July 18, 2003. A slightly revised

version was forwarded to ministers on Aug. 31, 2003 in preparation for the conference. See

JOB(03)/150/Rev.1 (the “Castillo draft”). In light of discussions at Cancun, the Castillo draft text was

revised by conference chairman Derbez. See JOB(03)/150/Rev.2, of Sept. 13, 2003 (the “Derbez

draft”). As the conference concluded without consensus, none are officially agreed documents.

25 WTO, “Statement by the Chairperson of the General Council December 15-18, 2003,” found at

Internet address http://www.wto.org/, retrieved on Mar. 26, 2004. The initial consultations were

reported October 14 referencing WTO paper JOB(03)/199, with the reports on the major rounds of

consultations held on November 18 under JOB(03)/212, and finally on December 9, 2003, under

JOB(03)/221.
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following reports the chairman’s summary of where the Doha Development Agenda

trade negotiations stood at year-end 2003 after his consultations subsequent to the

Cancun conference.

Agriculture

On agriculture, the chairman concluded that members would like to see domestic

support, market access, and export competition–the “three pillars” of the agriculture

talks–addressed in parallel.26 His suggestion on the way forward was to substantially

reduce or phaseout total support (using the agricultural measurement of support

(AMS) index) over an agreed timeframe. He suggested that the so-called “blue

box”–permitted domestic support payments to farmers for programs that limit

agricultural production–should be first capped, and later reduced in subsequent

negotiations. The so-called “green box”–permitted domestic support payments to

farmers for programs that do not distort trade–might remain as set out in the text

emerging from Cancun. On agricultural market access, he noted that the main

difficulty remaining was the “blended formula” for reducing agricultural tariff rates

and liberalizing nontariff barriers, although most members agreed to a common

approach to market access for both developed and developing countries, provided

that clear special and differential provisions were in place to account for different

levels of economic development, food security, and similar needs found in developing

countries. On export competition, members largely agreed that all unfair export

subsidies should be subject to reduction or elimination, with the key disagreement

being the end date for the phaseout of agricultural export subsidies. His consultations

showed that preferential treatment for special products and special safeguards for

agricultural products have become important elements of special and differential

treatment discussions in the agriculture talks.

Cotton initiative

The chairman noted that his focus in consultations was on the substance of the trade

and development aspects of the cotton proposal, leaving aside the issue of procedure,

that is, whether to discuss the issue under the agriculture negotiations or as a singular

issue.27 For trade matters, his discussions concluded that domestic support policies

were the principal trade policy instrument affecting the cotton sector, followed by the

role of market-access policies. The role of direct export subsidies appeared to present

minimal impact on the world market for cotton. Discussing development issues, three

broad elements emerged when developing countries emphasized the development

aspect of the cotton initiative during consultations: (1) the extent ofWTO competence in

the area of financial and technical assistance, (2) other providers of financial and

technical assistance, and (3) cotton-specific development projects and programs.

26 Ibid., par. 12-21.

27 Ibid., par. 22-27.
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Market access

Members largely agreed that the Derbez text on nonagricultural market access was

carefully drafted and could be used as a starting point.28 They also agreed that a

formula approach was key to these negotiations, but there was no agreement yet on

the specific formula to be used. Members did not agree on the sectoral component for

tariff liberalization, whether this component was voluntary or mandatory, or whether

it was a core or a supplementary modality of the negotiations. Many members saw the

Derbez text as balancing the two elements, thereby linking the outcome of one with the

other.

Singapore issues

The chairman found no consensus in his consultations concerning the Singapore

issues, other than possibly to allow each subject to advance individually rather than as

a group.29 His suggestion to members was to continue to explore possible negotiating

modaltities for trade facilitation and for transparency in government procurement,

and leave investment and competition policy for further reflection.

Procedures

The chairman suggested that arrangements to resume negotiations under the Doha

Development Agenda should reactivate the Trade Negotiating Committee (TNC) and

the negotiating groups early in 2004, following the February 2004 WTO General

Council meeting held to elect new officers for the year.30

Selected Activities in the WTO

In 2003, the WTO General Council held regular formal sessions in February, July,

August, October, and December, in addition to work carried out for the fifth session of

the WTO ministerial conference. A synopsis follows of selected activities in the WTO

during 2003 concerning regular matters31 not related to the multilateral trade

negotiations taking place under the Doha Development Agenda.

28 Ibid., par. 28-33.

29 Ibid., par. 34.

30 Ibid., par. 35-40. The first WTO General Council meeting in 2004 was held February 11-12,

where WTO members elected new chairpersons for 2004 for both WTO committees as well as

negotiating bodies under the Doha Development Agenda. The Doha Round chairpersons are to serve

until the Sixth WTO Ministerial Conference, which is to be held in Hong Kong, China. In January 2004,

the United States Trade Representative (USTR) Robert Zoellick sent an open letter to trade ministers

participating in the Doha Round in an effort to focus members’ negotiating efforts on several core areas

during 2004, to be galvanized by advancing the Sixth Ministerial Conference in Hong Kong to December

2004. At the February 2004 General Council meeting, participants in the Doha Round did not adopt this

suggestion to hold the Hong Kong ministerial in December 2004, instead agreeing to work toward

progress in 2004 before accelerating the schedule for the next ministerial conference. U.S. Department of

State telegram, “11 February 2004 Meeting of WTO General Council Meeting,” prepared by the U.S.

Mission, Geneva, message reference No. 430, Feb. 13, 2004.

31World Trade Organization, General Council, Annual Report (2003), WT/GC/76, Jan. 6, 2004,

found at Internet address http://docsonline.wto.org/, retrieved on Mar. 26, 2004.
3-9

Regular Ministerial Matters

Concerning regular ministerial matters, the Council heard reports regarding the Doha

work program on small economies that aims to help integrate small, vulnerable

economies more fully into the multilateral trading system, as well as reports on

progress made by the WTO Committee for Trade and Development on similar work.

The Council also heard its regular briefings from the chairman of the Trade

Negotiating Committee overseeing multilateral trade negotiations under the Doha

Development Agenda (DDA). As described in the preceding section, the Council heard

reports from General Council chairman Castillo regarding his consultations with

members following the Cancun ministerial conference, as well as reports from the

Director-General on his contacts to help restart negotiations. The Council made

arrangements to select new officers for standing WTO bodies, as well as those under

the TNC, which was completed at the General Council meeting in February 2004.

General Council Reviews

At its December 2003 meeting, the General Council conducted its second review of

China’s implementation of theWTO Agreement and its Protocol ofAccession.32 China

provided information required under its accession protocol, which the Council

considered, along with reports from WTO subsidiary bodies, before concluding the

review.

The Council also reviewed at this meeting the United States’ exemption under GATT

1994 (paragraph 3) for legislation known as the Jones Act, which provides the legal

basis for a U.S. prohibition of foreign-built and foreign-repaired ships from

conducting coastal trade within the United States (known as “cabotage”).33 The

United States provided requested information relating to the operation of the

exemption, clarified certain data on U.S. shipyard orders and deliveries, and supplied

information on U.S. appropriations legislation that involves the construction of several

cruise ships affected by Jones Act legislation. The General Council noted that the next

biennial review is to be held in 2005.

Waivers of WTO Obligations

At its December meeting, the General Council considered, and WTO members

agreed, to grant requests for waiversfromWTO obligations related to the introduction

of the Harmonized System into WTO schedules of tariff concessions (requesters

included Israel, Thailand, and Sri Lanka).34 WTO members and also granted

extensions of waivers to a number of requesting countries (Canada, Colombia, Cuba,

the EU, El Salvador, the least developed countries as a group, Switzerland, Turkey,

32 Ibid., p. 3.

33 Ibid., p. 3.

34 Ibid., p. 6.
3-10

and the United States) regarding a variety of individual issues centered largely around

preferential tariff programs. Among these, the U.S. waiver for the CBERA was

extended through December 2005, Canada’s waiver for a similar preference

program–Caribcan–was extended through 2006, the EU’s waiver for the ACP-EU

Partnership Agreement35 was extended through 2007, and the EU’s waiver for its

transitional regime to tariff-rate quotas on imports of bananas was extended through

2005. A waiver from obligations for WTO members to permit preferential tariff

treatment for the least developed countries was granted through June 2009, as well as

a waiver for the least developed countries from their WTO obligations concerning

pharmaceutical products under the TRIPs Agreement (Article 70.9), which was

granted through 2015.

Trade in Textiles and Clothing

The chairman reported to the Council on his consultations with developing country

members that are textile and clothing exporters about their concerns over the likely

decrease in quota access in 2004 stemming from the elimination of the “carry

forward” quota provision in that year.36 On a separate issue, the Council heard a

representative of the International Textiles and Clothing Bureau express concern

regarding a September 2003 announcement by the EU to adjust its textile agreements

made with third countries following the accession of new EU member states. Bureau

members were concerned that the likely effect of the action will be to widen EU quota

restrictions on textiles.

Technical Assistance, Policy Coordination, and Developing Countries

On May 13, 2003, the WTO held consultations with the IMF and the World Bank

concerning coherence in global economic policymaking and cooperation between

their respective institutions.37 The WTO General Council chairman summarized his

discussions with finance, foreign affairs, and trade ministers from a number of WTO

members on this subject of coherence, finding that members seek policy coherence in

two important areas: (1) assistance with policy analysis and adjustment, and (2)

technical assistance and capacity building. The first area addresses the need of

developing country members for analytical assistance to better evaluate the

implications of trade liberalization and reform for their governments’ development

objectives and policies. The second area, although related, appears to address the

need of developing country members to benefit inmore practical economic and

35 ACP is an acronym representing the African, Caribbean, and Pacific countries that were once

former colonies of EU member states and now, as a group, receive preferential treatment as developing

countries.

36 World Trade Organization, General Council, Annual Report (2003), WT/GC/76, p. 8.

37World Trade Organization, General Council, Coherence in Global Economic Policy-Making and

Cooperation between the WTO, IMF and World Bank — Minutes of Meeting — Held in the Centre

William Rappard on 13 May 2003, WT/GC/M/79, June 25, 2003, found at Internet address

http://docsonline.wto.org/, retrieved on Mar. 26, 2004.
3-11

financial terms from the trade liberalization that results from these negotiations.

Suggestions were solicited fromWTO members as to how these multilateral institutions

could better provide these two types of assistance.

Sixth Session of the WTO Ministerial Conference

At the General Council meeting in October 2003, WTO members accepted the offer

from Hong Kong, China, to host the Sixth WTO Ministerial Conference, at a time to be

determined later.38

Membership

In 2003, Armenia and Macedonia (former Yugoslav Republic of Macedonia) acceded

to the WTO, on February 5 and April 4, 2003, respectively. WTO membership stands

at 146 with these two accessions. At the Fifth Ministerial Conference in Cancun,

Cambodia and Nepal were invited to join the WTO.39 See table 3-1 and table 3-2 for

a list of WTO Members and Observers in 2003, respectively.

Dispute Settlement

By October 2003, the WTO marked the 300th dispute to be brought to

dispute-settlement proceedings since the World Trade Organization was established

in January 1995. Following this milestone, the WTO Secretariat compiled a review40

of how the WTO dispute-settlement system functioned over this period from January 1,

1995 through October 31, 2003.

In the nearly nine years under consideration, 302 requests for consultations41 had

been received. A total of 154 disputes were settled through consultations, and 148

disputes continued to the Appellate Body (AB). Consolidating similar disputes, the

WTO established during this time period 119 dispute panels covering distinct

matters.42 Of the 148 disputes covered under 119 dispute panels, the AB adopted 89

reports43 covering 73 distinct matters.

Participation

Since 1995, 92 WTO members have taken part in the dispute-settlement process,

either as complainant, respondent, or as a third party during consultations or in panel

38 World Trade Organization, General Council, Annual Report (2003), WT/GC/76, p. 9.

39 Nepal became the 147th WTO member of Apr. 24, 2004.

40WTO, Special Session of the Dispute Settlement Body, Statistical Information on Recourse to WTO

Dispute Settlement Procedures (1 January 1995–31 October 2003) – Background Note by the Secretariat,

JOB(03)/225, Dec. 11, 2003.

41 In this period, 302 respondents were requested to consult; 327 complainants were requesting

consultations.

42 The 119 dispute panels established regarding distinct matters covers 148 disputes, for which

dispute panels were initially established, but which the WTO Dispute Settlement Body subsequently

consolidated where multiple governments requested multiple dispute panels against a common member

and trade measure. Thus, the number of disputes for which a panel was initially established exceeds the

reported number of panels established.

43 Including related panel reports.
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Table 3-1

WTO membership in 2003 (146)

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

Cameroon

Canada

Central African Rep.

Chad

Chile

China

China, Hong Kong

China, Macao

Chinese Taipei 1

Colombia

Congo, Dem. Rep. of

Congo, Rep. of

Costa Rica

CTMte 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

Netherlands and

the 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.

Note.—Cambodia and Nepal were invited to accede to the WTO in September 2003 and will become WTO members 30 days

following the deposit of their instruments of accession with the WTO. Nepal became the 147th WTO member on April 27, 2004.

Source: WTO, found at http://www.wto.org/.
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Table 3-2

WTO observers in 2003 (30)

Algeria

Andorra

Azerbaijan

Bahamas

Belarus

Bhutan

Bosnia and

Herzegovina

Cambodia

Cape Verde

Equatorial

Guinea

Ethiopia

Kazakhstan

Laos

Lebanon

Nepal

Russia

Samoa

S‹o Tomé

and Príncipe

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/.

proceedings.44 Of these, 39 members have participated as complainants initiating a

dispute-settlement case, and 43 have participated as respondents in a case.

Respondents. Of the 302 respondents called to consult in this period, the United States

and the EU were involved the most often: the United States in 81 cases (27 percent) and

the EU in 47 cases (16 percent). Other WTO members called frequently for

consultations as respondents in this period were Argentina (15 cases), India (14),

Japan (13), Brazil (12), Canada (12), Korea (12), Chile (10), Mexico (10), and Australia

(9). Less frequently were Turkey (7), Indonesia (4), Peru (4), the Philippines (4),

Belgium (3), Ireland (3), and the Slovak Republic (3). See table 3-3 for a list of WTO

Members involved in more than one dispute-settlement consultation in this time period.

Complainants. According to the report, of the 327 complainants calling for

consultations, the United States and the EU were again the most active in using the

WTO dispute-settlement mechanism. The United States called for consultations in 75

cases (23 percent) and the EU for 62 cases (19 percent). Others calling for

consultations as complainants were Canada (24 cases), Brazil (22), India (15), Mexico

(13), Japan (11), Korea (10), Thailand (10), Argentina (9), Chile (8), Australia (7),and

New Zealand(6). Somewhat lessfrequent in initiating dispute-settlement consultations

were Guatemala (5), Honduras (5), Hungary (5), Colombia (4), Philippines (4),

Switzerland (4), Costa Rica (3), and Poland (3). (See table 3-3; note that the table

totals all cases, not only those shown.)

Subject matter under covered agreements

According to the report, disputes have been initiated under 17 of the 22 Uruguay

Round Agreements (so-called covered agreements).45 See table 3-4 for a tabulation

44 Ibid., p. 3, and table 2, pp. 12-14.

45 Ibid., p. 3, and table 3, p. 15.
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Table 3-3

WTO Members involved in more than one dispute-settlement consultation, January 1, 1995,

to October 31, 2003

Consultations requested, as complainant Consultations requested, as respondent

Cases* Percent Cases* Percent

Total 329 302

1 United States 75 22.8 1 United States 81 26.8

2 European Communities 62 18.8 2 European Communities 47 15.6

3 Canada 24 7.3 3 Argentina 15 5.0

4 Brazil 22 6.7 4 India 14 4.6

5 India 15 4.6 5 Japan 13 4.3

6 Mexico 13 4.0 6 Brazil 12 4.0

7 Japan 11 3.3 7 Canada 12 4.0

8 Korea 10 3.0 8 Korea 12 4.0

9 Thailand 10 3.0 9 Chile 10 3.3

10 Argentina 9 2.7 10 Mexico 10 3.3

11 Chile 8 2.4 11 Australia 9 3.0

12 Australia 7 2.1 12 Turkey 7 2.3

13 New Zealand 6 1.8 13 Indonesia 4 1.3

14 Guatemala 5 1.5 14 Peru 4 1.3

15 Honduras 5 1.5 15 Philippines 4 1.3

16 Hungary 5 1.5 16 Belgium 3 1.0

17 Colombia 4 1.2 17 Ireland 3 1.0

18 Philippines 4 1.2 18 Slovak Rep. 3 1.0

19 Switzerland 4 1.2 19 Czech Rep. 2 0.7

20 Costa Rica 3 0.9 20 Dominican Rep. 2 0.7

21 Poland 3 0.9 21 Ecuador 2 0.7

22 Ecuador 2 0.6 22 Egypt 2 0.7

23 Indonesia 2 0.6 23 France 2 0.7

24 Pakistan 2 0.6 24 Greece 2 0.7

25 Panama 2 0.6 25 Guatemala 2 0.7

26 Peru 2 0.6 26 Hungary 2 0.7

27 Turkey 2 0.6 27 Nicaragua 2 0.7

28 Pakistan 2 0.7

29 Romania 2 0.7

30 South Africa 2 0.7

31 Trinidad and Tobago 2 0.7

32 Venezuela 2 0.7

*Note.—Total cases include all cases, including WTO members involved in only one case. Table will therefore not sum to total

shown.

Source: WTO, Special Session of the Dispute Settlement Body - Statistical Information on Recourse to WTO Dispute Settlement Procedures (1 January 1995-31 October 2003) - Background Note by the Secretariat, JOB(03)/225, Dec. 11, 2003.
3-15

Table 3-4

WTO dispute settlement, by covered agreements,1 from January 1995 through October

2003

Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 Total

Total Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 39 50 41 30 34 23 37 23 302

General Agreement on Tariffs and Trade 1994

(GATT 1994) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 28 33 25 17 22 18 34 17 218

Agreement on Subsidies and Countervailing Measures

(SCM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 8 10 11 3 6 4 7 4 53

Agreement on Agriculture (AG) . . . . . . . . . . . . . . . . . . . . . 2 5 14 5 6 4 2 7 6 51

Agreement on Antidumping Practices (ADP) . . . . . . . . . . . 1 3 3 6 8 10 6 7 5 49

Agreement on Technical Barriers to Trade (TBT) . . . . . . . . 8 4 3 5 0 2 3 2 4 31

Agreement on Import Licensing Procedures (LIC) . . . . . . . . 1 1 13 5 4 1 2 3 1 31

Agreement on Sanitary and Phytosanitary Measures

(SPS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 3 5 0 2 1 5 6 30

Agreement on Safeguards (SG) . . . . . . . . . . . . . . . . . . . . 0 0 2 2 4 3 7 11 0 29

Agreement on Trade-Related Aspects of Intellectual

Property Rights (TRIPS) . . . . . . . . . . . . . . . . . . . . . . . . . . 0 6 5 4 5 3 1 0 1 25

Agreement Establishing the World Trade Organization

(WTO Agreement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 1 2 6 5 5 4 23

Agreement on Trade-Related Investment Measures

(TRIMS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 7 5 3 1 1 1 2 0 20

Agreement on Textiles and Apparel (TMB) . . . . . . . . . . . . 1 6 2 1 1 4 0 0 0 15

General Agreement on Trade in Services (GATS) . . . . . . . 1 3 2 3 1 3 1 0 1 15

Agreement on Customs Valuation (VAL) . . . . . . . . . . . . . . 3 1 0 1 1 3 0 0 1 10

Dispute Settlement Understanding (DSU) .............. 1 10 1 1 1 1006

Agreement on Government Procurement (GPA) . . . . . . . . 0030 100004

Agreement on Rules of Origin (RO) . . . . . . . . . . . . . . . . . . 0 0 2 1 0 0 0 1 0 4

Source: WTO, Special Session of the Dispute Settlement Body - Statistical Information on Recourse to WTO Dispute

Settlement Procedures (1 January 1995-31 October 2003) - Background Note by the Secretariat, JOB(03)/225,

Dec. 11, 2003.

1 Dispute cases maybe initiated referencing multiple agreements.

of WTO disputes brought under various covered agreements between January 1,

1995 and October 31, 2003. The greatest number of disputes were initiated under the

GATT 1994, 218 of the 302 requested consultations. Cases under this agreement

reached peak activity by 1997, and again in 2002, at 33 to 34 cases per year,

although cases brought under GATT 1994 subsided nearer to 17 to 22 cases during

1999 to 2001, and again in 2003.

The report indicates that after GATT 1994, the covered agreements showing the most

active dispute-settlement activity were the Subsidies Agreement (53 cases initiated),

Antidumping Agreement (49), and Agriculture Agreement (51). Comparing

agreements covering related disciplines–such as the Subsidies, Antidumping, and

Safeguards Agreements–WTO members appear to have initiated cases, first under

the Subsidies Agreement, followed by the Antidumping Agreement, and most recently

under the Safeguards Agreement. In 1996 to 1998, some 8 to 11 cases per year were

initiated under the Subsidies Agreement before falling in 1999 to only 3 cases.46 But

46 Since 1999, the initiation of subsidy cases has fluctuated upward to reach seven in 2002 before

falling off to four cases in 2003.
3-16

as cases brought under the Subsidies Agreement peaked and then declined, the

initiation of cases under the Antidumping Agreement appeared to increase until

peaking in 2000 with 10 cases, before subsiding thereafter to half that number by

2003. Lastly, once initiation of dispute cases involving antidumping issues subsided,

the initiation of safeguard cases rose sharply from 3-4 cases per year 1996 to 7 cases

in 2001 and 11 cases in 2002 before falling by 2003 to zero cases.

Dispute-settlement panels

According to WTO data, nearly half of all cases (49 percent) initiated have led to

establishment of a panel over the time period examined.47 A total of 148 panels have

been established initially, consolidated later to 119 panels covering distinct matters.

On average, requests to establish a panel have come 150 days after the initial request

for consultations,48 with establishment of a panel coming 49 days on average

following a request. On average, panels have been composed roughly 62 days after

their establishment.49 In 49 of the 119 panels, participants have requested the

Director-General to become involved in composing a panel, a procedure permitted if

parties to a dispute cannot agree on panelists within 20 days of establishment of a

panel.

Panel proceedings from establishment of a panel to circulation of the final panel report

to allWTO members have taken on average 12 months and 6 days.50 Measured from

the composition of a panel to circulation of the initial panel report to just the parties

involved, panel proceedings have lasted on average 8 months and 24 days.51 On

average, the final panel report has been circulated to WTO members 5 weeks and 3

days after being issued to the parties involved.52

Appeals

The appeals procedure to the WTO Appellate Body (AB) came into being

establishment of the WTO.53 The WTO appellate procedure considers (1) appeals of

panel judgments (“original” panel reports) under DSU Art. 6, and (2) appeals

regarding implementation of already issued judgments under DSU Art. 21. The report

indicates that, of “original” panel reports, 54 have been appealed since 1995,54

which the WTO reported as 74 percent. Of implementation appeals, 8 of 12 panel

47WTO, Statistical Information on Recourse to WTO Dispute Settlement Procedures, JOB(03)/225,

pp. 4-6.

48 Requests to establish a panel following consultations have ranged from 38 days to 737 days.

49 Composition time has ranged from 12 to 189 days.

50 Panel proceedings have ranged from 7 months, 12 days to 17 months, 15 days.

51 This measure of panel proceedings has ranged from 4 months, 21 days to 15 months, 26 days.

52 Initial to final report periods have ranged from 1 week to just over 14 weeks.

53WTO, Statistical Information on Recourse to WTO Dispute Settlement Procedures, JOB(03)/225,

pp. 6-7.

54 Although not all panel findings were appealed in each case.
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reports circulated have been appealed. Overall, the AB has heard 62 appeals

regarding 52 distinct matters. AB reports have been circulated on average 90 days

following notification of an appeal.55

Implementation: Reasonable period of time

Of 59 reports adopted from January 1995 through October 2003 where a measure

was found inconsistent under a WTO agreement, a reasonable period of time for

implementation was determined in 51 instances.56 During the period, there were 16

arbitration cases to determine a reasonable period of time for implementation under

DSU Art. 21.3(c), relating to 26 disputes. The arbiters’ awards were circulated 135

days on average after adoption of the relevant DSB recommendations, and 54 days

after appointment of an arbiter.

A reasonable period of time in which to implement adopted recommendations

determined by the AB through arbitration was on average a range between 8 months

and just over 15 months from the adoption of the report, although shorter periods of

time have been mutually agreed under this appeals procedure.57

Implementation: Compliance determination

The report states that compliance proceedings took place in 13 cases, covering 11

distinct matters, which the WTO reported as 18 percent of cases where a violation was

found under covered agreements.58 Eight of these compliance reports were

appealed. Twelve compliance reports were adopted by regular panels, plus eight AB

compliance reports. Compliance proceedings last between 90 and 205 days on

average for a panel–from referral of the matter to general circulation of the

compliance panel report–whereas AB compliance proceedings last between 60 and

91 days on average. In 9 of 12 instances where a compliance panel was established,

the parties agreed to a bilateral solution.

Retaliation (Suspension of concessions)

From 1995 through October 2003, authorization to suspend concessions was granted

seven times, involving six distinct disputes that concerned five distinct matters.59 The

WTO reports this authorization to suspend concessions or other obligations (so-called

55 Ranging from 47 to 114 days.

56WTO, Statistical Information on Recourse to WTO Dispute Settlement Procedures, JOB(03)/225,

pp. 7-8. In the remaining eight cases, the measure found to be inconsistent terminated or ceased to apply

in some manner.

57 When the inconsistent measures were found to be prohibited export subsidies the panel

recommended a 90-day period as set under Art. 4.7 of the WTO Agreement on Subsidies and

Countervailing Measures.

58WTO, Statistical Information on Recourse to WTO Dispute Settlement Procedures, JOB(03)/225,

p. 8.

59 Ibid., p. 9.
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retaliation) as 2 percent of all disputes initiated and 8 percent of dispute cases where

measures have been found in violation of a covered WTO agreement. All these cases

involved arbitration to determine the level of concessions to be suspended, with the

annual amounts authorized for retaliation ranging from $7.6 million to US$4.043

billion.

Mutually agreed solutions

The report states that mutually agreed settlements were notified to the DSB in 47 cases,

of which 29 settlements were announced before establishment of a panel, 10 during

panel proceedings, and eight during the compliance phase.60 The report indicates

that in 12 other cases, the measures in dispute were modified or terminated such that

dispute-settlement proceedings were no longer required. Also, the authority for four

panels lapsed after a suspension in dispute proceedings exceeding 12 months.

Organization for Economic Cooperation and Development

In 2003, the OECD Trade Committee devoted major attention to preparations for and

subsequent assessment of the WTO Fifth Ministerial Conference in Cancun, Mexico,

taking advantage of a forum in which to address differing viewpoints among OECD

members in a nonnegotiating setting. The committee also considered of work in

progress done within the Trade Directorate and in conjunction with other directorates;

prepared for the OECD ministerial council meeting, held April 29-30, 2003; dealt with

internal matters such as electing new officers for 2004; and surveyed members about

core work and medium-term work priorities. The committee held consultations with the

Business and Industry Advisory Committee as well as civil society organizations (also

known as nongovernmental organizations or “NGOs”).

Doha Multilateral Trade Negotiations

At the 136th session of the OECD Trade Committee, held March 10-11, 2003,

delegates exchanged contrasting views concerning the state of the WTO Doha

multilateral trade negotiations.61 Whereas some considered negotiations more

advanced than at an equivalent stage in the Uruguay Round, others pointed out missed

deadlines in a number of areas. An area of particular interest discussed by delegates

was the Singapore issues of investment, competition policy, transparency in

government procurement, and trade facilitation. Delegates considered negotiations

60 Ibid., pp. 9-10.

61OECD, Summary Record of the 136th Session of the Trade Committee – Paris, 10-11 March 2003,

TD/TC/M(2003)2/PROV, Apr. 15, 2003, par. 5-7.
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on these subjects to be already authorized by the Doha declaration, awaiting only for

modalities to be decided at the Cancun ministerial meeting. Delegates also indicated

that the group of issues should be unbundled, so that progress in any one area would

not be hindered by lesser progress in another.

At the 137th session of the Trade Committee, held October 21-22, 2003, delegates

assessed the failure of the Cancun WTO ministerial conference to move forward with

the Doha Development Agenda and its multilateral trade negotiations.62 The

summary report of their meeting indicates that the delegates found it unclear whether

negotiations could move forward based on the elements under discussion at Cancun

or whether the Doha declaration needed to be reinterpreted or the level of ambition

for the negotiations needed to be revised. The timeframe for the negotiations was also

unclear now, given the uncertainties surrounding what new basis for continued

negotiations might be reached.63 Delegates were reported to view as a positive

development the more active involvement of developing countries in the negotiations,

and their beginning to differentiate among themselves and their various needs along

lines of their different stages of economic development.64 Delegates expressed the

view that they considered this helpful toward developing distinctions necessary to

better target needed adjustment measures and capacity building assistance, as well as

being useful in developing measures for more effective special and differential

treatment.

Work in Progress

For 2003, the OECD Trade Directorate reported a number of projects in progress,

centered largely on issues related to (1) the Doha Development Agenda, and (2) trade

in services.65 Regarding the Doha round, work in progress covered subjects involving

trade in agriculture, as well as a number of projects addressing trade in

nonagricultural market access. Among the latter, ongoing research addressed

possible welfare gains from multilateral tariff liberalization, analysis of nontariff trade

barriers, and the likely impact of tariff liberalization on government revenues. Other

Doha-directed analysis addressed the Singapore issues of trade and environment,

investment, and trade facilitation. In the area of economic development related to the

Doha round, OECD Trade Directorate projects considered aspects of special and

differential treatment; trade, debt, and finance; and the development dimension of

trade-related intellectual property rights.

Regarding trade in services, the directorate has focused on services and trade in

services in Southeastern Europe, as well as work concerning public services, and

62 OECD, Summary Record of the 137th Session of the Trade Committee – Paris, 21-22 October

2003, TD/TC/M(2003)4/PROV, Dec. 12, 2003, par. 1-10.

63 OECD, Summary Record of the 137th Session of the Trade Committee – Paris, 21-22 October

2003, TD/TC/M(2003)4/PROV, Dec. 12, 2003, par. 1.

64 Ibid., par. 5.

65 OECD, 137th Session of the Trade Committee – Work in Progress – 21-22 October 2003,

TD/TC/RD(2003)6, Oct. 15, 2003.
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education and health services. Other work in progress includes projects addressing

regulatory reform, structural adjustment in the global textiles and clothing sectors, as

well as outreach activities to developing countries that included a regional forum on

trade held in Nairobi, Kenya, and continued dialogue on trade policy with the

transition economies largely from Eastern Europe moving from more centrally

planned to market economies.

Work involving export credits continued in 2003, working on subjects related to the

environment, bribery, and unproductive expenditures involving export credits for the

Heavily Indebted Poor Countries.

Other Business

The Trade Committee addressed other business items related to preparations for the

OECD ministerial meeting, as well as for a supporting role in the WTO Fifth Ministerial

Conference; consultations with civil society organizations concerning issues important

to nongovernmental bodies and with the Business and Industry Advisory Committee

concerning labor practices; and elections of new representatives to the Trade

Committee bureau for 2004.66

APEC

The Asia-Pacific Economic Cooperation (APEC) was established in 1989. The major

purpose of APEC is tofacilitate economic growth, cooperation, trade and investment in

the Asia-Pacific region. Unlike theWTO, APEC has no treaty obligations required of its

participants. In APEC, decisions are made on the basis of consensus and commitments

are undertaken on a voluntary basis. During 2003, 21 member economies were in

APEC.67 The member economies are Australia, Brunei Darussalam, Canada, Chile,

People’s Republic of China, Hong Kong, China, Indonesia, Japan, Republic of Korea,

Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Republic of the

Philippines, the Russian Federation, Singapore, Chinese Taipei, Thailand, the United

States of America, and Viet Nam.68 Each year one of the APEC economies hosts the

APEC meetings and serves as the APEC chair. The APEC host economy chairs the

annual economic leaders’ meeting, selected ministerial meetings, senior officials

meetings, the APEC Business Advisory Council, and the APEC Study Centres

66OECD, Summary Record of the 136th Session of the Trade Committee;, par. 3-8, 11-15; Summary

Record of the 137th Session of the Trade Committee, par. 31-35.

67 For background information on APEC, see USITC, The Year in Trade: OTAP, 1994, USITC

publication 2894, pp. 35-39. APEC refers to its members as economics in order to encompass the wide

diversity of its membership.

68 APEC, “About APEC,” found at http://www.apecsec.org.sg/apec/about_apec.html.
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Consortium.69 Future APEC ministerial meetings will be held in Chile in 2004, Korea in

2005, Viet Nam in 2006, Australia in 2007, and Peru in 2008.70

At the 2003 APEC ministerial held in Bangkok, Thailand, in November, APEC ministers

discussed how to reinvigorate the WTO Doha negotiations, how to address regional

security challenges, and infectious diseases.71 With regard to the WTO, in their joint

statement, ministers expressed regret concerning the missed opportunity in Cancun,

Mexico, in September 2003, but noted that progress had been made in some areas

including TRIPs and access to certain essential medicines. They noted that a successful

outcome is necessary for strengthening the global trading system. They recognized

APEC’s capacity-building contributions and reaffirmed the importance of WTO

capacity-building activities in the future. Ministers recognized that intra-APEC

regional trade agreements/free trading arrangements could contribute to APEC’s

goals of free and open trade and investment, provided that they are consistent with

WTO rules and disciplines.72

In other major areas, APEC ministers took the following actions:

H Structural Reform: Ministers adopted the APEC Structural Rerform Action

Plan as a unified framework for helping build economies’ capacity to

undertake structural reform.

H Trade and Investment Liberalization and Facilitation: Ministers endorsed the

2003 Committee on Trade and Investment (CTI) annual report.

H Individual and Collective Action Plans (IAPs and CAPs): Ministers reaffirmed

their commitment to achieve the Bogor goals through actions in their IAPs.

They endorsed measures taken by economies on trade facilitation and

welcomed the new chapter on the APEC food system, which combines

development of rural infrastructure, dissemination of technological advances

in food production and processing, and liberalization and promotion of trade

in food products. Ministers also welcomed the Strengthening Economic Legal

Infrastructure mechanism that was agreed on last year.73

Australia, Canada, Hong Kong, China, Japan, Korea, Mexico, New Zealand, and

Thailand participated in peer reviews on their IAPs in 2003. Ministers reaffirmed their

commitment to complete all 21 IAP peer reviews by 2005.74

Ministers instructed Senior Officials to review and progressively improve the CAPs to

produce tangible benefits to the business community and to meet Bogor goals, as

follows:

69 Ibid.

70 APEC, “Fifteenth APEC Ministerial Meeting, Joint Statement,” found at

http://www.apec.sec.org.sg/apec/ministerial_statements/annual_ministe..., retrieved Oct. 22, 2003.

71 Ibid.

72 Ibid.

73 Ibid.

74 Ibid. The Bogor Declaration of 1994 committed APEC to achieving free and open trade and

investment no later than 1010 and for developing economies no later than 2020. APEC Secretariat,

“APEC” 1995.
3-22

H Pathfinder Initiatives: Pathfinder initiatives allow economies to initiate and

implement cooperative arrangements ahead of others. Ministers urged

economies to participate in Pathfinder initiatives. They welcomed progress so

far to implement work in e-commerce, services, intellectual property, and

tariff areas.

H APEC Business-Government Dialogues: Ministers welcomed the

business-government understanding that has been achieved as a result of the

Automotive and Chemical Dialogues.

H Economic and Technical Cooperation and Capacity Building: Ministers

endorsed a list of Economic and Technical Cooperation (ECOTECH) priorities

to guide APEC’s contribution to the economic and social development of the

region. APEC will focus on promoting the development of knowledge-based

economies in the region.

H Intellectual Property Rights: Ministers committed to continuing close

cooperation within APEC aimed at improving IPR facilitation, protection, and

enforcement and endorsed the establishment of IPR Service Centers.

H Cybersecurity: APEC welcome the Cybercrime Legislation and Enforcement

Capacity Building Project and called forfurther work by APEC to develop laws

and procedures to facilitate the investigation and prosecution of

cross-jurisdictional cybercrime.

H Electronic Commerce: Ministers welcomed the work of senior officials in this

area. They highlighted the importance of senior officials completing the APEC

Data Privacy Principles, which will help APEC economies develop privacy

laws and regulations.

H E-Learning: Ministers welcomed the development of afive-year strategic plan

for e-learning in the region including recommendations for improving

students’ and teachers’ access to the Internet, availability of innovative

educational content using the Internet, teachers capacity to use technology,

and for addressing policy issues raised in implementing e-Learning efforts

across APEC.

H Severe Acute Respiratory Syndrome (SARS): Ministers recognized the human

and economic impact of SARS on APEC economies, individually and

collectively, and the importance of preventing future outbreaks of SARS and

other infectious diseases.

H Social Safety Nets and Workforce Retraining: Ministers stressed the need for

addressing the social dimensions of globalization and commended the

initiatives undertaken by APEC.

H Financial Architecture: Ministers recognized the benefits of the financial

cooperation to pursue the shared vision of establishing a sound and resilient

financial system. They welcomed APEC finance ministers’ work on the

promotion of a regional bond market.
3-23

H Economic Research and Analysis: Ministers endorsed several economic

reports and welcomed the 2003 Economic Outlook.

H SMEs and Micro-Enterprises: Ministers welcomed the establishment of an

APEC Sub-Group on Micro-enterprises and endorsed the Micro-Enterprise

Development Action Plan.75

Following the APEC ministerial meeting, APEC leaders issued a statement: “AWorld of

Differences: Partnership for the Future.” In their statement, the Leaders agreed to

strengthen the APEC partnership to liberalize and facilitate regional trade and

investment and to protect APEC economies against threats of terrorism. 76 APEC

leaders offered support for the Doha agenda and agreed to:

H Press for an ambitious and balanced outcome to the Doha agenda;

H Re-energize the negotiation process;

H Work towards the abolition of agricultural export subsidies and unjustifiable

export prohibitions and restrictions;

H Coordinate among multilateral, regional, and bilateral free trade

frameworks so that they are complementary and mutually reinforcing;

H Support early accession for the Russian Federation and Vietnam to the WTO;

H Continue to work on WTO capacity and confidence building;

H Instruct APEC ministers to take concrete steps to make APEC’s trade agenda

more supportative of the WTO and report on progress in 2004;

H Work with the APEC Business Advisory Council (ABAC) and the business

community to continue to implement the Shanghai Accord and Los Cabos

directives to facilitate business activity in the APEC region; including the

reduction transaction costs by the year 2006.

H Advance all pathfinder initiatives; including a digital Economy Statement to,

e.g. stop optical disk piracy.

H Fight corruption by working in 2004 to develop specific domestic actions to

combat it.77

One section of the Leaders’ statement included provisions aimed at combating

terrorism and eliminating the dangers posed by weapons of mass destruction.

Separate APEC initiatives on counterterrorism were announced prior to the APEC

meetings.78

75 Ibid.

76APEC, 2003 Leaders’ Declaration, “Bangkok Declaration on Partnership for the Future,” found at

http://www.apecsec.org.sg/apec/leaders_declarations/2003.html, retrieved, Oct. 22, 2003.

77 Ibid.

78 For further information, see Fact Sheet, White House, “New APEC Initiatives on

Counterterrorism,” found at http://www.state.gov/p/eap/rls/fs/25428.htm, retrieved Oct. 22, 2003.
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APEC leaders welcomed APEC’s activities on sustainable economic development

including making it more effective, better focusing and strengthening its work on

economic and technical cooperation and increasing its interaction with international

financial institutions, the private sector and other outside organizations.79 For the

future, APEC leaders agreed to: strengthen efforts to empower people and societies,

including women and youth; strengthen small- and medium-sized enterprises;

increase efforts to build knowledge-based economies; strengthen regional efforts to

promote sound and efficient financial systems andfundamentals; accelerate structural

reform in the APEC region, and make APEC more responsive to all stakeholders.80

79APEC, 2003 Leaders’ Declaration, “Bangkok Declaration on Partnership for the Future,” found at

http://www.apecsec.org.sg/apec/leaders_declarations/2003.html, retrieved Oct. 22, 2003.

80 Ibid.
4-1

CHAPTER 4:

U.S. Free Trade Agreements

The United States participated in five operative free trade agreements (FTAs) as of

December 31, 2003. The U.S.-Israel FTA was implemented in 1985, the North

American Free Trade Agreement (NAFTA) in 1994, the U.S.-Jordan FTA in 2000, the

U.S.-Chile FTA in 2003, and the U.S.-Singapore FTA in 2003.1 In 2003, the President

notified Congress of his intention to launch FTA negotiations with Australia and

Bahrain. Also, the Administration launched negotiations with the countries of the South

African Customs Union (Botswana, Lesotho, Namibia, South Africa, and Swaziland)

on June 2, 2003. During 2003 the United States continued negotiations which began

in 1994 with 34 other democratic countries of the Western Hemisphere toward the

creation of the Free Trade Area of the Americas (FTAA). On January 25, 2004, the

United States concluded the Central America Free Trade Agreement (CAFTA) with five

Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and

Nicaragua)2 and on March 2, 2004, an FTA was concluded with Morocco.3

North American Free Trade Agreement4

U.S. Trade with NAFTA Partners

The North American Free Trade Agreement (NAFTA), which came into effect January

1, 1994, created the world’s largest trading area. Total trade with NAFTA partners

increased by 3 percent in 2003 compared to 2002, with U.S.-Canada trade totaling

$372.8 billion in 2003 and U.S.-Mexico trade totaling $220.3 billion (table 4-2). In

2003, total U.S. trade with Canada and Mexico increased over the 2002, after

declining in 2002 from the 2001 level. The U.S. trade deficit with NAFTA partners

increased for the third year in a row growing 15 percent from $112.2 billion in 2001 to

$129.4 billion in 2003.

1 For background information on the U.S.-Israel, U.S.-Jordan, U.S.-Chile, and U.S.-Singapore FTAs,

see USITC, The Year in Trade: Operation of the Trade Agreements Program, 54th Report, USITC

publication 3630, Aug. 2003, pp. 4-1 through 4-15

2 On March 15, 2004, the United States and the Dominican Republic concluded trade talks

integrating the Dominican Republic into the CAFTA.

3 Information was obtained from USTR at http://www.ustr.gov, Apr. 25, 2004. On February 8,

2004, the United States and Australia concluded an FTA. Table 4-1 summarizes the status of U.S. FTA

negotiations as of December 31, 2003, and information regarding selected 2003 FTA negotiations is

provided in the following section.

4 U.S. bilateral relations with Canada and Mexico are discussed in Chapter 5.
Table 4-1

Status of U.S. FTA negotiations, as of December 31, 2003FTA Partner(s) Date negotiations began/ notified to Congress Status of negotiationsU.S.-Israel Israel N/A Implemented 1985U.S.-Jordan Jordan N/A Implemented 2000NAFTA Canada, Mexico N/A Implemented 1994U.S.-Bahrain Bahrain Negotiations began

Jan. 26, 2000.

N/A

U.S.-Chile FTA Chile Negotiations began Dec. 6, 2000. FTA signed June 6, 2003.U.S.-Singapore FTA Singapore Negotiations began Nov. 16, 2000. FTA signed May 6, 2003.Free Trade Area of the Americas(FTAA)

33 democracies of theWestern Hemisphere1 Negotiations began April 19, 1998. Market access negotiations began May 15, 2002. Offers for agricu

services, investment, and government procurement were presented Dec. 15, 2002 and Feb. 15, 2003, with submissions of requests for between Feb. 16, 2003 and June 15, 2003.

U.S.-Central America Free TradeAgreement

Honduras, Nicaragua,Costa Rica, El Salvador,and Guatemala

President notified Congress ofintention to negotiate Aug. 22, 2002.Negotiations began Jan. 8, 2003.

Negotiations initiated Jan. 8, 2003. Four rounds of negotiations comUnited States tabled text on rules of origin in March 2003, and text agricultural and industrial goods in May 2003. The U.S. administraallowing the Dominican Republic to become a party to the CAFTA.

U.S.-Morocco FTA Morocco President notified Congress of

intention to negotiate Aug. 22, 2002.Negotiations began Jan. 21, 2003.

The first round of negotiations concluded in late January 2003, and March 2003. Established March 2, 2004.

U.S.-South African CustomsUnion FTA

Botswana, Lesotho,Namibia, South Africa,and Swaziland

President notified Congress ofintention to negotiate Nov. 5, 2002.Negotiations began June 2, 2003.

First round of negotiations occurred in June 2003.

U.S.-Australia FTA Australia President notified Congress of

intention to negotiate Nov. 13, 2002.Negotiations began March 19, 2003.

Negotiation rounds held in March, May, and July 2003. FTA signed 

U.S.-Taiwan FTA Taiwan Not applicable No negotiations have begun. On Nov. 6, 2001, Senator Max Baucu

legislation to establish a U.S.-Taiwan FTA. On Jan. 17, 2002, the U.formally requested USITC to conduct an assessment of the economic The USITC report2 was delivered to Congress in October 2002.

1 The 33 other FTAA countries are: Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominica, D

Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, St. Vincent and the Grenadines, St. Lucia, St. Kitts an

Tobago, Uruguay, and Venezuela.

2 USITC, U.S.-Taiwan FTA: Likely Economic Impact of a Free Trade Agreement Between the United States and Taiwan, Investigation No. 332-438, USITC publication 3

Sources: Compiled by the Commission from multiple sources, including: U.S. Department of State telegram, “Successful Round 1 of U.S.-SACU Free Trade Negotiat

02978, prepared by U.S. Embassy Pretoria, June 6, 2003; U.S. Department of State telegram, “U.S.-Morocco Free Trade Agreement Update,” message reference 

Embassy, Rabat, Jan. 8, 2003; and, USTR, “Free Trade Agreement Negotiations, found at http://www.ustr.gov/new/fta/index.htm, retrieved July 29, 2003.
4-3

Table 4-2

U.S. trade with NAFTA partners, 2001-03

(Billion dollars)

Year NAFTA partner Exports Imports

Trade

balance

Two-way

trade

2001 Canada ............ 144.6 216.8 -72.2 361.5

Mexico . . . . . . . . . . . . 90.5 130.5 -40.0 221.0

Canada and Mexico . . 235.2 347.3 -112.2 582.5

2002 Canada . . . . . . . . . . . . 142.5 210.5 -68.0 353.1

Mexico . . . . . . . . . . . . 86.1 134.1 -48.0 220.2

Canada and Mexico . . 228.6 344.6 -116.0 573.3

2003 Canada . . . . . . . . . . . . 148.8 224.1 -75.3 372.9

Mexico . . . . . . . . . . . . 83.1 137.2 -54.1 220.3

Canada and Mexico . . 231.9 361.3 -129.4 593.1

Note.—Because of rounding, figures may not add to totals shown.

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

The following sections discuss the major activities of the NAFTA Free Trade

Commission, the Commission for Labor Cooperation, the Commission for

Environmental Cooperation, and dispute settlement activities under NAFTA chapters

19 and 20 during 2003.

Free Trade Commission

The NAFTA is overseen by the Free Trade Commission, which comprises the trade

ministers of each member country5 and meets on an annual basis to discuss past

successes and future goals. Mandates are carried out by various committees and

workgroups made up of relevant government officials from the three countries. The

Free Trade Commission held its annual meeting in Montréal, Québec, Canada, on

May 7, 2003, and issued a Joint Statement6 which looked favorably at the

achievements of the last 10 years, and pledged a continued commitment to multilateral

trade and investment liberalization. The Joint Statement also:

H Evaluated the NAFTA’s impact on its member countries, concluding that “it is

an outstanding demonstration of the rewards that flow to outward-looking,

confident countries that implement policies of trade liberalization as a way to

increase wealth, improve competitiveness and expand benefits to consumers,

workers, and businesses;”7

5 U.S. Trade Representative represents the United States, the Secretary of Economy represents

Mexico, and Minister for International Trade represents Canada.

6 USTR, “NAFTA Free Trade Commission Joint Statement Celebrating NAFTA at Ten,’ Montréal,

Québec, Canada, May 7, 2003,” press release.

7 Ibid.
4-4

H Stressed the significant increase in trade and investment that has occurred

since the NAFTA’s implementation, citing that three-way trade among

member countries has reached over US$621 billion, more than double the

pre-NAFTA level, and that Foreign Direct Investment (FDI) into the NAFTA

countries also doubled, reaching a figure of US$299.2 billion in the year

2000; and Reaffirmed a commitment to ensuring that economic integration is

accompanied by better environmental performance and improved working

conditions as set forth under the North American Agreement on

Environmental Co-operation and the North American Agreement on Labor

Co-operation.8

At the May 2003 meeting, the Free Trade Commission reviewed “outcomes” from a set

of mandates that had been issued at the April 2003 Commission meeting in Puerto

Vallarta, Mexico:

H The Investment Experts Group (IEG), which had been tasked with examining

the investment chapter of the NAFTA, presented its recommendations for

review in Montréal. The recommendations were agreed upon and shall have

the effect of establishing formal procedures regarding submissions from

non-disputing parties, and the implementation of a standard form for Notices

of Intent to Submit a Claim to Arbitration. This is expected to enhance the

transparency and efficiency of the investor chapter’s investor-state dispute

settlement process. The members attributed this progress to the efforts of the

Council of the Commission for Environmental Cooperation (CEC), and the

Joint Public Advisory Committee (JPAC), which both had important hands in

the consultations;

H The recommendation of the NAFTA Temporary Entry Working Group has

been accepted, and temporary entry for actuaries and plant pathologists will

be granted. This change will be implemented trilaterally on February 1, 2004,

and will be included in Appendix 1603.D.1 (Professionals) of the NAFTA;

H Signed by representatives of the professional accounting organizations of

Canada, Mexico, and the United States, the Mutual Recognition Agreement

has been accepted by the Free Trade Commission. This agreement will

facilitate the recognition of credentialswithin the three NAFTA countries and is

a positive step in the development in the cross-border trade in services;

H The Commission welcomed the establishment of the North American Steel

Trade Committee, which met for the first time on November 21, 2003, in

Mexico City. The Committee hopes to promote cooperation among the three

NAFTA governments on international steel policy matters, and is intended to

serve as a center for information exchange and dialogue;

8 January 1, 2004, will mark 10 years since the North American Agreement on Environmental

Co-operation and the North American Agreement on Labor Co-operation entered into force.
4-5

H The Commission has accepted the recommendation of the NAFTA Advisory

Committee on Private Commercial Disputes, which callsfor the adoption of the

“UNCITRAL Model Law on International Commercial Conciliation.” It is hoped

that by establishing a harmonized legal framework within the NAFTA region,

private commercial disputes will be resolved more effectively.9

On October 7, 2003, the Free Trade Commission agreed to pursue further

liberalization of the NAFTA rules of origin according to the requirements as outlined in

section 202 of the North American Free Trade Implimentation Act, and also agreed to

commence a study of the Most Favored Nation (MFN) tariffs of each of the Parties.10

The NAFTA rules of origin provide for preferential tariff and trade treatment of goods

of U.S., Canadian, and Mexican origin, pending successful completion of the general

NAFTA rules of origin NAFTA entered intoforce, the Parties have modified many of the

rules of origin, conforming them to tariff classification changes, thus making them less

restrictive and less burdensome to the administrator. In reference to the tariff

harmonization study, that since 1994, the Parties have undertaken four separate tariff

acceleration exercises, speeding the elimination of tariffs on several hundred line items

that have covered billions of dollars in trade. Under NAFTA article 308, the three

countries harmonize at zero tariff rate duties for computers/computer parts, local

area network equipment and semiconductors. Further consultations will be held with a

variety of domestic industries in the hopes that more products can be covered by this

exercise. The Free Trade Commission has agreed that the United States will host the

2004 Ministerial meetings.

Commission for Labor Cooperation

The Commission for Labor Cooperation (CLC) was formed under the North America

Agreement on Labor Cooperation (NAALC). The NAALC is a side-agreement to

NAFTA, implemented to ensure January 1, 1994, and intended that NAFTA-related

economic integration improves working conditions and living standards and increases

adherence to basic labor law principles by each country. The NAALC is administered

by the Commission for Labor Cooperation (CLC), which is overseen by a Council

comprising the three NAFTA member labor ministers. Each member has a National

Administrative Office (NAO) to ensure the implementation of the NAALC and to

investigate any violation of the agreement. In the United States, a 12-member National

Advisory Commission drawn from academia, business, and labor groups advises the

NAO. If the NAO determines that a violation of the agreement has occurred, the

matter is then referred to the CLC Council to hold ministerial consultations with the

respective party to resolve the issue.

9 Previous information summarized: from USTR, “NAFTA Free Trade Commission Joint Statement

Celebrating NAFTA at Ten,’ Montréal, Québec, Canada, May 7, 2003,” press release.

10 USTR, “Harmonization of Most Favored Nation Tariff Rates for the United States, Canada, and

Mexico; Liberalization of the Rules of Origin Applicable Under Provisions of the North American Free

Trade Agreement,” found at http://search.epnet.com/direct.asp?an=CX2003346U6030&db=bwh,

retrieved Jan. 8, 2004.
4-6

The North American Labor ministers held their Seventh Ministerial Meeting in

Washington, D.C., on November 13, 2003, to review the substantially increased

cooperation that has taken place in the area of worker’s rights since the NAFTA’s

inception 10 years ago.11 The major conclusions12 of the review were to:

H Continue the discussion about timely labor issues facing the three countries.

Such issues include developing the skills needed for the 21st-century

workforce, introducing the social and labor components of hemispheric

integration, and improving migrant worker rights;

H Solicit public views on the progress and efficiency of the NAALC;

H Announce the release of the second edition of a major report on North

American labor markets entitled North American Labor Markets: Main

Changes Since NAFTA, which provides data on labor market issues such as

unemployment, productivity, hours of work, and classes of unemployment;

and

H Announce the release in 2004 of the North American Migrant Workers’

Guide produced by the Secretariat; the guide is intended to ensure that

migrant workers in North America know their labor rights and understand

how they are enforced in each country (the Council also approved a plan for

the promotion and distribution of the guide in each country).

In 2003, the CLC undertook ministerial consultations on three public submissions that

raised issues concerning freedom of association and the right to bargain collectively in

Mexico.13 Under the NAALC, domestic interest groups can submit requests to their

national NAO offices to investigate alleged violations of the NAALC or the labor laws

of another country. The consultations were held in Monterrey, Mexico, on March 20,

2003, at the Labor Boards in North America Trilateral Seminar. Consistent with the

ministerial agreements, the 2003 seminar provided the opportunity for U.S. experts

representing the National Mediation Board, the National Labor Relations Board, and

the Federal Mediation and Conciliation Board, along with their counterparts from

Mexico and Canada, to discuss: labor law and practice governing labor members

and officials; their structure and responsibilities; the rules and procedures to assure

their impartiality; their role in the process of gaining the right to a collective bargaining

contract; and the types of unions and their relevant rights.14 The summit concluded

with panelists and audience members exchanging views over labor board practices in

each Member Country.

11 Commission of Labor Cooperation (CLC), “North American Labor Ministers Meet to Discuss

Program of the NAFTA Labor Commission,” found at http://www.naalc.org/english/announce8.shtml,

retrieved Jan. 8, 2004.

12 Ibid.

13 The three public submissions in question were numbers 9702 (Han Young), 9703 (ITAPSA), and

9901 (TAESA), and can be found at http://www.naalc.org/english/summary_usa.shtml.

14 U.S. Department of Labor, NAO Cooperative Activities, “2003 Cooperative Activities Work

Programs,” found at http://www.dol.gov/ilab/programs/coopact/prevcoopact.htm, retrieved Jan. 8,

2004.
4-7

One new submission was filed in 2003. U.S. NAO Submission 2003-1 (Puebla) was

filed on September 30, 2003, by the United Students Against Sweatshops (USAS) and

the Centro de Apoyo al Trabajador concerning conditions at a garment factory in the

State of Puebla, Mexico.15 An amendment filed on November 10, 2003, raises similar

enforcement issues concerning another garment factory also located in the State of

Puebla. The submission and the amendment allege violations under the NAALC

concerning freedom of association and the right to organize; collective bargaining,

occupational safety and health; minimum employment standards (minimum wage and

overtime pay); and access to fair and transparent labor tribunal proceedings. In

particular, the petitioners allege that workers were illegally denied the right to form an

independent union, laws against phantom unions were not enforced. The National

Administrative Office will examine the submission to decide whether to accept it for

review.16

Also in 2003, the Council agreed that the three NAFTA countries and the Secretariat

would develop a plan to make a North American contribution to the implementation of

the Action Plan of the 13th Inter-American Conference of Ministers of Labor. This

forum, designed to address the labor dimensions of globalization in the Americas and

to strengthen the capacity of North American labor ministries, took place on

September 24, 2003 in Salvador da Bahia, Brazil.17

In 2004, the Council for the Commission for Labor Cooperation will be undertaking its

second, mandatory four-year review of the North American Agreement on Labor

Cooperation (NAALC), covering the period from 1999 to the present.18

Commission for Environmental Cooperation

At the same time, the NAFTA partners wanted to ensure that environmental

safeguards were built alongside the trade liberalization pact. They therefore signed

an accord, the North American Agreement for Environmental Cooperation (NAAEC),

to address potential trade-related environmental concerns.19 The Commission for

Environmental Cooperation (CEC) was created to oversee implementation of the

NAAEC. Its governing Council consists of the Canadian Environment Minister, the

Mexican Secretary for Environment and Natural Resources, and the U.S.

15U.S. Department of Labor, Status of Submissions Under the North American Agreement on Labor

Cooperation (NAALC), found at http://www.dol.gov/ILAB/programs/nao/status.htm#iia1, retrieved

Jan. 22, 2004.

16 Ibid.

17 Organization of American States, “Hemisphere’s Labor Ministers Meet in Brazil,” found at

http://www.oas.org/OASpage/press_releases/press_release.asp?sCodigo=E-178/0, retrieved Jan.

12, 2004.

18 National Administrative Office, U.S. Dept. of Labor, found at http://www.dol.gov/

ILAB/programs/nao/main.htm, retrieved Jan. 12, 2004.

19 2004-2007 Operational Plan of the Commission for Environmental Cooperation at Internet site

http://www.cec.org/files/pdf/PUBLICATIONS/2004-2007-Operational-Plan_en.pdf, retrieved Jan.

12, 2004.
4-8

Environmental ProtectionAgencyAdministrator. Also integral to the mission of the CEC

are the Joint Public Advisory Committee (JPAC) and Secretariat. The JPAC consists of

five private citizens from each of the NAFTA countries, while the Secretariat is made up

of professional staff.20

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 format

and content of valid submissions and appropriate complaining parties and Article 15

outlines the Secretariat’s obligations in considering the submissions developing a

factual record.21 In 2003 the Secretariat published pursuant to the provision of Article

15 the factual records of six pursuant to the provisions of Article 14 files and closed

those files.22 Ten files remain active, five of which were first submitted in 2003. A

summary of Chapter 14 activity during 2003 is contained within table 4-3. Omitted

from the summary is a single file, Home Port Xcaret (03-002), which was terminated on

May 14, 2003, after the 30-day term expired without the Secretariat receiving a

submission from the complaining party that conformed to article 14(1).23 A complete

list of factual records published under Article 15 during 2003 may be found in table

4-4.

On October 31, 2003, the CEC published a revised draft of its operational plan for

2004-06. The plan lays out four main program goals to be pursued in the years

ahead.

1. “To foster understanding of the state of our environment, and its relation to the

economy and trade in North America.”

2. “To act as a catalyst to improve domestic law and policy, and enhance

environmental enforcement and compliance across North America.”

3. “To mobilize international cooperation to resolve critical North American

environmental issues.”

4. “To provide a forum for public dialogue and participation concerning

environmental issues in North America.”24

The plan elaborates in great detail the short-term objectives, targets, and strategies

that will result in fulfillment of the program goals. Also included in the 2004-06

20USTR Draft Report Section III “Regional Negotiations” Elements of NAFTA Subsection 5: “NAFTA

and the Environment.”

21 NAAEC Articles 14 and 15, found at Internet site http://www.cec.org/pubs_info_resources/

law_treat_agree/naaec/naaec05.cfm?varlan=english#14, retrieved Jan. 14, 2004.

22CEC “Citizen Submissions on Enforcement Matters: Current Status of Filed Submissions,” found at

Internet site http://www.cec.org/citizen/status/index.cfm?varlan=english, retrieved Jan. 14, 2004.

23 CEC “Citizen Submissions on Enforcement Matters: Home Port Xcaret,” found at Internet site

http://www.cec.org/citizen/submissions/details/index.cfm?varlan=english&ID=89, retrieved Jan. 14,

2004.

24 Ibid.
4-9

Table 4-3

Active Chapter 14 files through 2003

Name Case First Filed Country Status

Alca-Iztapalpa II SEM-03-004 6/17/03 Mexico Considering recommendation of a factual record

Cytrar III SEM-03-006 8/15/03 Mexico Considering recommendation of a factual record

El Boludo Project SEM-02-004 8/23/02 Mexico Considering recommendation of a factual record

Lake Chapala II SEM-03-003 5/23/03 Mexico Awaiting response from concerned

government party

Molymex II SEM-00-005 4/6/00 Mexico The Secretariat placed a work plan and a

repository of documents on its web site or otherwise

made these available to the public and stakeholders

Montreal

Technoparc

SEM-03-005 8/14/03 Canada Considering recommendation of a factual record

Ontario Logging SEM-02-001 2/6/02 Canada The Secretariat has recommended the preparation

of a factual record

Ontario Power

Genereation

SEM-03-001 5/1/03 Canada Considering recommendation of a factual record

Pulp and Paper SEM-02-003 5/8/02 Canada The Council voted to instruct the Secretariat to

develop a factual record

Tarahumara SEM-00-006 6/9/00 Canada The Secretariat placed a work plan and a

repository of documents on its web site or otherwise

made these available to the public and stakeholders

Source: North American Commission for Environmental Cooperation.

Table 4-4

Factual records published in 2003 under chapter 15

Name Case First Filed Country Date Published

Aquanova SEM-98-006 10/20/98 Mexico 6/23/03

BC Logging SEM-00-004 3/15/00 Canada 8/11/03

BC Mining SEM-98-004 6/29/98 Canada 8/12/03

Migratory Birds SEM-99-002 11/19/99 United States 4/24/03

Oldman River II SEM-97-006 10/4/97 Canada 8/11/03

Rio Magdalena SEM-97-002 3/15/97 Mexico 12/11/03

Source: North American Commission for Environmental Cooperation.

operational plan is a discussion of steps necessary to enhance the effectiveness of CEC

management.25

The CEC Council held its Tenth Regular Session on June 24-25, 2003. Significant developments

at the meeting include Resolution 03-07 (annex D). The resolution adopts a strategic plan for

North American cooperation in the conservation of biodiversity.26 Council members directed

the Secretariat to “coordinate, seek partners, additional funds, and diverse input”

25 CEC document “Operation Plan for the Commission of Environmental Cooperation 2004-2006” found at

Internet site http://www.cec.org/files/PDF/PUBLICATIONS/2004-2007-Operational- Plan_en.pdf, retrieved

Jan. 15, 2004.

26 Tenth Regular Session of the Council (CEC) Document C/03-00/SR/01/final.
4-10

in their implementation of the plan.27 The Council noted efforts in the area of children’s

health as well, directing the Secretariat to publish the first CEC report on the subject

during 2004. Also to be published in 2004 is a report from the Expert Advisory Board

on Children’s Health and the Environment outlining progress in the implementation of

the Cooperative Agenda on Children’s Health and the Environment.28 JPAC took the

opportunity to express concern over the timeliness of CEC actions, citing the late

release of a draft report and lack of progress on the proposed Environment and Trade

ministerial as problematic. The JPAC chairman voiced his desire to engage in an open

dialogue with council members about issues that require their attention.29 The CEC also

kicked off a 10-year review of NAFTA and the NAAEC at the meeting. The review is

aimed at assessing the effectiveness of the CEC and NAAEC. 30

Dispute Settlement

Chapter 19 provides for binational review of antidumping (AD) and countervailing

duty (CVD) final determinations:

Article 1904 establishes a mechanism to provide an alternative to judicial

review by domestic courts of final determinations in antidumping and

countervailing duty cases, with review by independent binational panels. A

Panel is established when a Request for Panel Review is filed with the NAFTA

Secretariat by an industry asking for a review of an investigating authority’s

decision involving imports from a NAFTA country....

When a dispute arises under Chapter 19, a panel of five members is selected

from the national Roster lists. Each government in the dispute (through its

trade minister) appoints two panelists, in consultation with the other involved

government. (Chapter 19 panels are always binational in composition). The

fifth panelist is from one of the two countries and generally alternates with

each dispute....

Chapter 19 panels review final antidumping (AD) and countervailing duty

(CVD) determinations solely to determine, based on the administrative

record, whether the relevant administrative agency applied its national

AD/CVD laws correctly. The panels will employ the same standard of review

and the same genaral legal principles, as would a domestic court in the

country where the determination was made.

Seven binational panels were formed in 2003 under the provisions of NAFTA chapter

19, which provides for binational panel review in lieu of court review in antidumping

and countervailing duty matters. Every panel formed in 2003 involved challenges to

U.S. agencies’ determinations – i.e., determinations of the USITC and the Department

of Commerce (Commerce). All of the six Chapter 19 reviews begun in 2003 were active

on January 1, 2004. None of the NAFTA Chapter 7 binational panels issued decisions

in 2003. (See table 4-5).

27 Ibid.

28 Ibid.

29 Ibid.

30 Ibid.
4-11

U.S.-Morocco Free Trade Agreement31

In April 2002, the United States and Morocco agreed to pursue a free trade

agreement. On October 1, 2002, USTR notified Congress and trade negotiations were

initiated with Morocco in January 2003 and an agreement was signed in March

2004. The U.S. Administration states that a U.S.-Morocco FTA is an integral part of its

strategy to create a Middle East Free Trade Area by 2013.32 According to USTR, the

agreement negotiated will build on bilateral work begun in 1995 under the

U.S.–Morocco Trade and Investment Framework Agreement; support significant

economic and political reforms already under way in Morocco; eliminate duties and

certain other barriers to trade in goods and services between the U.S. and Morocco;

enhance protection of intellectual property rights; and address government

procurement, and trade related environmental and labor matters.33 Currently, U.S.

products entering Morocco face an average tariff of over 20 percent while Moroccan

products are subject to an average tariff of 4 percent as they enter the United States.

According to USTR, key goals of the FTA are as follows:34

1. Trade in goods: seek to eliminate tariffs and other duties and charges on

trade between Morocco and the United States on the broadest possible basis,

subject to reasonable adjustment periods for import-sensitive products. Seek

to have Morocco join the WTO Information Technology Agreement. Pursue

favorable staging of tariff elimination and other market access commitments

that improve the competitive position of U.S. goods vis-à-vis the EU. Seek to

eliminate Morocco’s nontariff barriers to U.S. exports, including licensing

barriers, restrictive administration of tariff-rate quotas, unjustified trade

restrictions that affect new U.S. technologies, and other trade restrictive

measures that U.S. exporters identify. Seek to have the Moroccan

Government reform its policies in the agricultural sector, particularly with

respect to the grains market. Seek to eliminate Moroccan Government

practices that adversely affect U.S. exports of perishable or cyclical

agricultural products, while improving U.S. import relief mechanisms. Pursue

31 On March 2, 2004, the United States and Morocco signed an FTA that covered more than 95

percent of bilateral trade in consumer and industrial products that will become duty-free immediately

upon entry into force of the agreement with the remaining tariffs to be eliminated within nine years.

32USTR, U.S. and Morocco Conclude Free Trade Agreement, press release, Mar. 2, 2004, found at

http://www.ustr.gov, retrieved Mar. 23, 2004.

33 Ibid.

34 Overview of the Dispute Settlement Provisions of the North American Free Trade Agreement

(NAFTA) found at http://www.nafta-sec-alena.org/DefaultSite/dispute/index_e.aspx?CategoryID=16

downloaded 6/18/2004.
Table 4-5

NAFTA Chapter 19 binational panels, active reviews in 2003NAFTA National agencies’country Case final determination1 Product descriptionUnited States USA-97-1094-10 5th antidumping duty administrative review Gray portland cement and clinker 

USA-MEX-98-1904-02 6th antidumping duty administrative review Gray portland cement and clinker USA-MEX-98-1904-05 Final scope ruling Circular welded non-alloy steel pipUSA-MEX-2000-1904-06 Full sunset review of antidumping duty order Gray portland cement and clinker USA-CDA-2000-1904-06 Full sunset review of antidumping duty order Pure magnesium from CanadaUSA-CDA-2000-1904-09 5 year reviews of countervailing duty and antidumping duty orders Magnesium from CanadaUSA-CDA-2000-1904-11 5 year review of final injury determination and antidumping duty orders Carbon steel products from CanadUSA-MEX-2001-1904-03 Final results of the full sunset review of the antidumping duty order Oil country tubular goods from MeUSA-MEX-2001-1904-04 Final result of the 9th antidumping duty administrative review Gray portland cement and clinker 

USA-MEX-2001-1904-05 Final results of the 4th antidumping duty administrative review and Oil country tubular goods from Me

determination not to revoke

USA-MEX-2001-1904-06 Final results of the five year review of the antidumping duty order Oil country tubular goods from MeUSA-MEX-2002-1904-01 Dismissal of request to institute a sec. 751 (b) investigation Gray portland cement and clinker USA-CDA-2002-1904-02 Final determination of sales at less that fair value Softwood lumber products from CaUSA-CDA-2002-1904-03 Final affirmative countervailing duty order and final negative critical Softwood lumber products from C

circumstances determination

USA-MEX-2002-1904-05 10th antidumping duty administrative review Gray portland cement and clinker 

USA-MEX-2002-1904-07 Final injury determination Certain softwood lumber products USA-CDC-2002-1904-09 Final injury determination Carbon and certain alloy steel wirUSA-CDA-2003-1904-02 Department of Commerce final results of countervailing duty new Alloy magnesium from Canada

shipper review

USA-CDA-2003-1904-05 Department of Commerce final determination of sales at less than Certain durum wheat and hard re

fair value

USA-CDA-2003-1904-05 Department of Commerce final affirmative countervailing duty Certain durum wheat and hard re

determinations

USA-CDA-2003-1904-06 USITC final injury determination Hard red spring wheat from CanaUSA-MEX-2003-1904-01 Department of Commerce final results final review of the Gray portland cement and clinker 

11th antidumping duty administrative review

See footnote at end of table.
Table 4-5—Continued

NAFTA Chapter 19 binational panels, active reviews in 2003NAFTA National agencies’country Case final determination1 Product descriptionUnited States-Continued USA-MEX-2003-1904-03 Department of Commerce final results final review of the Gray portland cement and clinker 

12th antidumping duty administrative review

1 In the United States, dumping and subsidy determinations are made by the U.S. Department of Commerce, and injury determinations are made by the U.S. Internation

final dumping and subsidy determinations are made by Revenue Canada (Customs and Excise) and injury determinations are made by the Canadian International Trade T

determinations are made by the Secretaria de Economia (formerly the Secretaria de Comercio y Fomento Industrial).Source: NAFTA Secretariat, found at http://www.nafta-sec-alena.org/english/indiex.htm, retrieved Apr. 2, 2004.
4-14

a mechanism with Morocco that will support achieving the U.S. objective in the

WTO negotiations of eliminating all export subsidies on agricultural products,

while maintaining the right to provide bona fide food aid and preserving U.S.

agricultural market development and export credit programs. Pursue fully

reciprocal access to the Moroccan market for U.S. textile and apparel

products.

2. Customs matters, rules of origin, and enforcement cooperation: seek rules to

require that Morocco’s customs operations are conducted with transparency,

efficiency, and predictability and that customs laws, regulations, decisions,

and rulings are not applied in a manner that would create unwarranted

procedural obstacles to international trade. Seek rules of origin, procedures

for applying these rules, and provisions to address circumvention matters that

will ensure that preferential duty rates under the FTA with Morocco apply only

to goods eligible to receive such treatment, without creating unnecessary

obstacles to trade. Seek terms for cooperative efforts with the Moroccan

Government regarding enforcement of customs and related issues, including

trade in textiles and apparel.

3. Sanitary and Phytosanitary (SPS) measures: Seek to have Morocco reaffirm

its WTO commitments on SPS measures and eliminate any unjustified SPS

restrictions. Seek to strengthen collaboration with Morocco in implementing

the WTO SPS Agreement and to enhance cooperation with Morocco in

relevant international bodies on developing international SPS standards,

guidelines, and recommendations.

4. Technical Barriers to Trade (TBT): Seek to have Morocco reaffirm its WTO TBT

commitments and eliminate any unjustified TBT measures. Seek to strengthen

collaboration with Morocco on implementation of the WTO TBT Agreement

and create a procedure for exchanging information with Morocco.

5. Intellectual property rights: Seek to establish standards to be applied in

Morocco that build on the foundations established in the WTO Agreement on

Trade-Related Aspects of Intellectual Property Rights and other international

intellectual property agreements.

6. Trade in services: Pursue disciplines to address discriminatory and other

barriers to trade in Morocco’s services market.

7. Electronic commerce: Seek to affirm that Morocco will allow goods and

services to be delivered electronically and seek to ensure that it does not apply

customs duties to digital products or unjustifiably discriminate among

products delivered electronically.

8. Government procurement: Seek to establish procurement procedures and

practices in Morocco for government procurement that are fair, transparent,

and predictable.

9. Transparency/anticorruption/regulatory reform: Seek to make the

administration of Morocco’s trade practices more transparent and seek to
4-15

ensure that it applies high standards prohibiting corrupt practices affecting

international trade.

10. Trade remedies: Provide a bilateral safeguard mechanism during the

transition period. Make no changes in U.S. antidumping and countervailing

duty laws.

11. Environment: Seek to promote trade and environment practices that are

mutually supportive.

12. Labor, including child labor: Seek an appropriate commitment by Morocco to

be effective in enforcement of its labor laws.

13. State-to-state dispute settlement: Seek to establish fair, transparent, timely,

and effective procedures to settle disputes arising under the agreement.

Free Trade Area of the Americas

Negotiations for the creation of the Free Trade Area of the Americas (FTAA) continued

during 2003.35 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 is to conclude negotiations by no later than January 2005 so

that the FTAA agreement can enter into force by no later than December 2005.36 In

2003, combined U.S. exports to the other 33 FTAA countries totaled $277.7 billion,

and U.S. imports were valued at $437.8 billion. NAFTA alone accounted for more

than 80 percent of that trade.

Before the negotiations began, participants selected countries to chair or co-chair the

overall FTAA negotiations. The year 2003 marked the beginning of the final phase of

the negotiations, and the first full year with the United States and Brazil as co-chairs.

This co-chairmanship is scheduled to lead the FTAA negotiations until they conclude.37

Trade ministers of the respective FTAA countries are responsible for the ultimate

oversight and management of the negotiations. The trade ministers established the

trade negotiations committee (TNC) at the vice-ministerial level to provide direct

guidance and administrative responsibilities for the FTAA negotiations.38 The trade

35USTR, “U.S. and Morocco Conclude Free Trade Agreement,” press release, Mar. 2, 2004, found

at http://www.ustr.gov/releases/2004/03/04-15.pdf, retrieved Mar. 23, 2004. Notification letter to

Congress, USTR, found at http://www.ustr.gov/fta/morocco/house_notification.pdf, retrieved Mar.

24, 2004.

36 For a description of FTAA developments through 2003, see USITC, The Year in Trade, 2002,

USITC publication 3630, pp. 4-14 to 4-15, and prior reports in this series.

37 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,”

FTAA Official Website, found at http://www.ftaa-alca.org/Summits/Quebec/declara_e.asp,retrieved

Mar. 24, 2004.

38 For a description of FTAA developments through 2003, see USITC, The Year in Trade, 2002,

USITC publication 3630, pp. 4-14 to 4-15, and prior reports in this series.
4-16

ministers met at their Eighth Trade Ministerial in Miami in November 2003 to provide

guidance for the final phase of the FTAA negotiations. The TNC was instructed to

develop the framework for the FTAA negotiations, specifically

[T]o develop a common and balanced set of rights and obligations applicable

to all countries. The negotiations on the common set of rights and obligations

will include provisions in each of the following negotiating areas: market

access; agriculture; services; investment; government procurement;

intellectual property; competition policy; subsidies, antidumping, and

countervailing duties; and dispute settlement. On a plurilateral basis,

interested parties may choose to develop additional liberalization and

disciplines. The TNC shall establish procedures for these negotiations . . . . The

results of the negotiations must be WTO compliant.39

The ministers directed that market access negotiations be completed by September 30,

2004, and reaffirmed their commitment to “the successful conclusion of the FTAA

negotiations by January 2005.”40 A third draft of the FTAA agreement text was

released November 21, 2003. Significant portions of that text were in brackets—i.e.,

not agreed upon.41

The TNC met in April, July, September, and November 2003, and in February, March,

and April 2004. In their March 2004 communiqué, after the November 2003 Miami

Ministerial, the TNC co-chairs reported that additional time was needed for delegates

to decide on a framework for the FTAA negotiations.42 In their April 2004

communiqué, the TNC co-chairs again reported that delegates had not yet been able

to develop a framework for the FTAA negotiations, and that “further progress is

necessary” at this stage before resuming the work of the TNC.43

During 2003, the United States continued its active participation in the meetings of the

nine FTAA negotiation groups (market access, agriculture, intellectual property rights,

services, investment, government procurement, competition policy, dispute settlement,

and subsidies/antidumping/countervailing duties) and the three committees and

non-negotiating groups (the Technical Committee on Institutional Issues, the

Consultative Group on Smaller Economies, and the Committee of Government

Representatives on the Participation of Civil Society). The United States also

39 “Ministerial Declaration of San José: Summit of the Americas Fourth Trade Ministerial Joint

Declaration San José, Costa Rica, Mar. 19, 1998,” FTAA Official Website, found at

http://www.ftaa-alca.org/Ministerials/SanJose/SanJose_e.asp, retrieved Mar. 24, 2004.

40 “Ministerial Declaration: Free Trade Area of the Americas Eighth Ministerial Meeting, Miami,

Nov. 20, 2003,” FTAA official website, found at http://www.ftaa-alca.org/Ministerials/Miami/

Miami_e.asp, retrieved Mar. 24, 2004.

41 Ibid.

42 The text of the draft agreement was posted on the FTAA official website, found at

http://www.ftaa-alca.org/FTAADraft03/Index_e.asp, retrieved Mar. 24, 2004.

43 “FTAA Trade Negotiations Committee Joint Communiqué of Co-chairs,” FTAA.TNC/com/02,

Mar. 10, 2004, FTAA Official Website, found at http://www.ftaa-alca.org/TNC/TNCcom02_e.asp,

retrieved Mar. 24, 2004.
4-17

participated in the ad hoc group on Rules of Origin and an ad hoc group within the

Market Access Negotiating Group, which are negotiating rules of origin for the

FTAA.44

The heads of state and government of the Americas met in a Special Summit of the

Americas in Monterrey, Mexico, in 2004.45 This special summit addressed measures

to combat poverty, promote growth and development, and strengthen democracy in

the hemisphere. The leaders also supported the agreement of trade ministers on the

framework and calendar adopted for concluding the negotiations for the FTAA.

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

Dominican Republic

President Bush announced his intention to explore a free trade agreement with Central

America (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) on

January 16, 2002. The Dominican Republic was integrated into the Central American

negotiations with an agreement that was concluded on March 15, 2004. The President

formally notified Congress of his intention to begin free trade negotiations on October

1, 2002, following passage of Trade Promotion Authority.46

The United States began FTA negotiations on the Central America Free Trade

Agreement (CAFTA) on January 8, 2003.47 Nine rounds of negotiations were held in

2003. Five negotiating groups covered topics such as market access, investment and

services, government procurement and intellectual property, labor and environment,

and institutional issues such as dispute settlement. A sixth group on trade capacity

building met in parallel with the five negotiating groups.48

On December 17, 2003, the United States concluded negotiations on the CAFTA.49

Under the agreement, over 80 percent of U.S. exports of consumer and industrial

products will be duty-free upon entry into force of the agreement and 85 percent will

44 Ibid, Apr. 1, 2004, FTAA Official Website, found at http://www.ftaa-alca.org/

TNC/TNCcom03_e.asp, retrieved Apr. 5, 2004.

45 For a more detailed description of the U.S. position in the FTAA negotiations, see USTR, 2004

Trade Policy Agenda and 2003 Annual Report, pp. 110-12, found at http://www.ustr.gov/reports/

2004 Annual/III-bilateral.pdf, retrieved Mar. 29, 2004.

46 Prior summits were in Miami in 1994; in Santiago, Chile, in 1998; and in Quebec, Canada, in

2001. FTAA Official Website, found at http://www.ftaa-alca.org/Summits_e.asp, retrieved Mar. 24,

2004.

47 USTR, “United States and Central American Nations Launch Free Trade Negotiations,” Jan. 8,

2003, found at http://www.ustr.gov, retrieved Apr. 30, 2004.

48 The United States initially concluded negotiations with Honduras, Nicaragua, El Salvador, and

Guatemala. Negotiations were concluded with Costa Rica on Jan. 25, 2004. USTR, “U.S. and Dominican

Republic Conclude Trade Talks Integrating the Dominican Republic into the Central America Free Trade

Agreement,” press release 04-19, Mar. 15, 2004, and “U.S. and Costa Rica Reach Agreement on Free

Trade,” press release 04-03, Jan. 25, 2004, found at http://www.ustr.gov, retrieved Apr. 30, 2004.
4-18

be duty-free within five years. All remaining tariffs will be phased out within 10 years.

More than half of U.S. agricultural exports will be duty-free immediately and

remaining tariffs will be phased out within 15 years. Textiles and apparel will be

duty-free, if they meet the agreement’s rules of origin. Market access commitments

were secured across all service sectors. Other areas covered were protection for

investment, digital products, workers rights, environmental cooperation, and

government procurement.50 The text of the agreement was released on January 25,

2004.

U.S.-Australia Free Trade Agreement51

In November 2002, the USTR notified the U.S. Congress of the administration’s intent

to enter into a free trade agreement negotiations with Australia. The United States and

Australia held five rounds of FTA negotiations in 2003, and an agreement was

concluded in February 2004. According to USTR, more than 99 percent of U.S.

exports of manufactured goods to Australia will become duty-free immediately upon

entry into force of the agreement; and it is estimated that the elimination of tariffs could

result in $2 billion per year in increased U.S. exports of manufactured goods.

Australian tariffs are much higher than U.S. tariffs; as such, American firms today pay

10 times many in total annual import tariffs to Australia than the U.S. collects imports

from Australia . The agreement is the first free trade agreement that the United States

has entered into with a developed country since 1998.52

According to USTR, key goals of the FTA are as follows:53

H Trade in industrial goods and agriculture: Eliminates tariffs, other duties, and

charges on U.S.-Australia trade. Seek elimination of Australian Government

export monopoly arrangements for wheat, barley, sugar, and rice by

requiring Australia to eliminate exclusive export rights for its state-trading

enterprises (STEs), end any financing privileges for these enterprises, and

provide more information on the activities and any special rights accorded to

STEs. Coordinate with Australia within the WTO to eliminate all export

subsidies on agricultural products. Pursue fully reciprocal access to

Australia’s market for U.S. textile and apparel products.

49 USTR, “United States and Central American Nations Launch Free Trade Negotiations,” Jan. 8,

2003 found at http://www.ustr.gov, retrieved Apr. 30, 2004.

50 The agreement has not yet been presented to Congress for implementation.

51USTR, “U.S. and Central American Countries Conclude Historic Free Trade Agreement,” Dec. 17,

2003.

52 The United States and Australia concluded a free trade agreement on Feb. 8, 2004.

53 USITC, “U.S.-Australia Free Trade Agreement; Potential Economywide and Selected Effects,”

USITC publication 3697, May 2004.
4-19

H Customs matters, rules of origin, and enforcement cooperation: Requires that

Australia’s customs operations are conducted with transparency, efficiency,

and predictability; and that customs laws, regulations, decisions, and rulings

do not create unwarranted procedural obstacles to international trade.

H Sanitary and phytosanitary (SPS) measures: Requires Australia to reaffirm its

WTO commitments on SPS measures and eliminate any unjustified SPS

restrictions.

H Technical barriers to trade (TBT): Requires Australia to reaffirm its WTO TBT

commitments, including those relating to labeling requirements on U.S. food

and agricultural products produced through biotechnology, and eliminate

any unjustified TBT measures.

H Intellectual property rights: Requires Australia’s ratification of the World

Intellectual Property Organization (WIPO) Copyright Treaty and the WIPO

Performances and Phonograms Treaty. Seek to establish standards that build

on the foundations established in the WTO Agreement on TRIPs and other

international intellectual property agreements. Seek to enhance the level of

Australia’s protection for intellectual property rights beyond TRIPs in new

areas of technology, such as Internet service provider liability.

H Trade in services: Pursue a comprehensive approach to market access,

including enhanced access for U.S. services firms to telecommunications and

any other appropriate service sector in the Australian market. Seek improved

transparency and predictability of Australia’s regulatory procedures. Seek

appropriate provisions to ensure that Australia will facilitate the temporary

entry of U.S. business persons into its territories.

H Investment: Requires rules that reduce or eliminate artificial or

trade-distorting barriers to U.S. investment in Australia, including investment

screening by the Australian Government, while ensuring that Australian

investors in the United States are not accorded greater substantive rights with

respect to investment protections than U.S. investors in Australia . Secure for

U.S. investors in Australia important rights comparable to those that would be

available under U.S. legal principles and practices.

H Electronic commerce: Affirms that Australia will allow goods and services to

be delivered electronically on terms that promote the development and

growth of electronic commerce. Seek to ensure that Australia does not apply

customs duties in connection with digital products or unjustifiably discriminate

among products delivered electronically.

54 Notification letter to Congress, USTR, found at http://www.ustr.gov/releases/2002/

11/2002-11-13-australia-byrd.PDF, retrieved Mar. 23, 2004.
4-20

H Government procurement: Establishes rules requiring that Australia’s

government practices be fair, transparent, and predictable for suppliers of

U.S. goods and services who seek to do business with the Australian

Government.

H Transparency/anticorruption/regulatory reform: Ensures that the

administration of Australia’s trade practices are fair and transparent,

including ensuring that interested parties can have timely access to

information on measures and Australia’s procedures for administering them.

H Trade remedies: Provides a bilateral safeguard mechanism during the

transition period. Make no changes in U.S. antidumping and countervailing

duty laws.

H Environment: Promotes trade and environmental practices that are mutually

supportive.

H Labor, including child labor: Commitments by Australia to ensure effective

enforcement of its labor laws.

H State-to-state dispute settlement: Establishes fair, transparent, timely, and

effective procedures to settle disputes arising under the agreement.
5-1

CHAPTER 5:

U.S. Relations With Major Trading

Partners

This chapter reviews bilateral trade relations and selected trade issueswith eight major

U.S. trading partners during 2003: the European Union (EU), Canada, Mexico,

Japan, China, Taiwan, Korea, and Brazil. Appendix tables A-16 through A-24

provide detailed information on U.S. trade with these partners.

European Union

The United States and the EU share the largest two-way (exports plus imports) trade

relationship in the world and are each other’s largest trading partners. In 2003,

U.S.-EU trade totaled $380 billion, a 6.8-percent increase over 2002. U.S. exports to

the EU increased to $138 billion in 2003, up by 4.2 percent from 2002. U.S. imports

from the EU increased by 8.3 percent in 2003 to $242 billion, resulting in a $104

billion trade deficit with the EU in 2003. Leading U.S. exports to the EU during the year

included aircraft and aircraft parts, parts of automated data processing machines,

and certain medicaments. Leading U.S. imports from the EU included passenger cars,

certain medicaments, and nucleic acids and their salts. U.S.-EU trade data are shown

in appendix tables A-16 through A-18.

During 2003, two important long-term trade disputes remained on the U.S.-EU trade

agenda and were still unresolved at the end of the year. In potentially the largest

U.S.-EU dispute in terms of the amount of trade affected, the WTO dispute-settlement

process continued during the year in response to an EU complaint1 that U.S. special tax

treatment of foreign sales corporations (FSCs), and the replacement U.S. tax policy

(FSC Repeal and Extraterritorial Income Exclusion Act of 2000),2 constitute a

prohibited export subsidy. Also in 2003, the United States requested the WTO

examine the EU’s de facto moratorium on approvals of agricultural biotechnology

products. Both of these issues are discussed below.

1 The European Communities (EC) were subsumed into the EU in 1993. Although the complaint was

technically filed by the EC, the term EU is used to describe events since 1993.

2 Pub. L. 106-519.
5-2

Foreign Sales Corporations

Background3

On July 1, 1998, the EU challenged in the WTO the first of two successive U.S. tax

regimes.4 In both cases, the WTO dispute-settlement panel and Appellate Body found

the regime constituted a prohibited export subsidy and was inconsistent with U.S.WTO

obligations. Following the second ruling in January 2002, the EU requested WTO

authorization to impose $4.043 billion in tariffs on U.S. products as compensation. On

August 30, 2002, the WTO arbitrator circulated its decision that the countermeasures

sought by the EU were appropriate, and 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.5 On September 13, 2002, the EU published a

notice in its Official Journal requesting public comments on a proposed list of U.S.

products that could be subject to the countermeasures.6

Developments During 2003

On February 26, 2003, following the public consultation procedure that began in

September 2002, the European Commission presented member states with a draft list

of U.S. products that could be subject to countermeasures.7 After a few changes,

member states approved the list and the European Commission notified the final

version to the WTO.8 The list covers over 1,600 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.

According to the European Commission, to minimize the impact of any

countermeasures on EU industry, the list only includes products for which imports from

the United States account for less than 20 percent of total EU imports of a specific

product.9

3 For more information on the background of the FSC dispute, see 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.

4 The two successive tax regimes were (1) the FSC provisions of U.S. tax law, and (2) its replacement,

the FSC Repeal and Extraterritorial Income Exclusion Act of 2000 (ETI Act).

5WTO, “United States—Tax Treatment for Foreign Sales Corporations,’ Recourse to Arbitration by

the United States, Decision of the Arbitrator,” WT/DS108/ARB, Aug. 30, 2002.

6 “Notice relating to the WTO Dispute Settlement proceeding concerning the United States tax

treatment of Foreign Sales Corporations (FSC)–Invitation for comments on the list of products that could

be subject to countermeasures,” Official Journal of the European Communities (OJ), No. C 217/2 (Sept.

13, 2002).

7 European Commission, “Foreign Sales Corporations: European Commission Submits to Member

States Draft List of Products That Could be Subject to Countermeasures,” press release IP/03/285, Feb.

26, 2003.

8 For the definitive list of products, see WTO, “United States—Tax Treatment for Foreign Sales

Corporations,’ Recourse by the European Communities to Article 4.10 of the SCM Agreement and Article

22.7 of the DSU,” WT/DS108/26, Apr. 25, 2003.

9 European Commission, “Foreign Sales Corporations: European Commission Submits to Member

States Draft List of Products That Could be Subject to Countermeasures,” press release IP/03/285, Feb.

26, 2003.
5-3

On May 7, 2003, the WTO Dispute Settlement Body (DSB) authorized the EU to take

appropriate countermeasures and to suspend concessions in the amount of $4.043

billion per year, in line with the arbitration report issued in August 2002.10 However,

the EU indicated in the DSB meeting that it would give the United States “a short

additional period” to make the legislative changes necessary to comply.11 Following

the decision of the DSB, the European Commission stated that it expected the United

States to ensure compliance with WTO rules before the beginning of 2004.12

According to Pascal Lamy, EU Trade Commissioner, “The Commission will review the

situation in the autumn, and if there is no sign that compliance is on the way at that time,

it would then start the legislative procedure for the adoption of countermeasures by

January 1, 2004.”13

Throughout the year, both houses of Congress continued to work on legislation to

address the issue. On October 1, 2003, the Senate Committee on Finance approved

legislation (S. 1637, Jumpstart Our Business Strength (JOBS) Act) to repeal the ETI.14

On October 28, 2003, the House Committee on Ways and Means approved H.R.

2896, the American Jobs Creation Act of 2003, to repeal the ETI.15 In addition, the

administration continued to urge action by the Congress to enact legislation that would

bring U.S. law into conformity with the WTO ruling.16

On December 8, 2003, the EU Council of Foreign Affairs Ministers adopted a

regulation to impose countermeasures on U.S. products, beginning on March 1, 2004,

if the United States has not yet complied with theWTO ruling.17 The regulation calls for

imposing 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, 2005.18 The European Commission indicated that it will consider

10 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/english/news_e/news03_e/dsb_7May03_e.htm, retrieved May 9,

2003.

11 Ibid.

12 European Commission, “Foreign Sales Corporations: Following WTO Authorisation to Apply

Countermeasures of Up to $4 Billion, EU Expects U.S. to Ensure Compliance With WTO Rules Before the

Beginning of Next Year,” press release IP/03/642, May 7, 2003.

13 Ibid.

14 Senate Committee on Finance, “Grassley Wins Committee Approval of Tax Cut for

Manufacturers, Farmers, Significant International Tax Reforms,” press release, Oct. 1, 2003, found at

http://www.senate.gov/~finance/press/Gpress/2003/prg100103.pdf, retrieved Feb. 17, 2004.

15 Committee on Ways and Means, “Help for American Workers: Job Creation and Protection,”

press release, Oct. 28, 2003, found at http://waysandmeans.house.gov/news.asp, retrieved Feb. 17,

2004.

16 For example, U.S. Department of the Treasury, General Explanations of the Administration’s

Fiscal Year 2005 Revenue Proposals, February 2004, pp. 187-89, found at http://www.treas.gov/

offices/tax-policy/library/bluebk04.pdf, retrieved Feb. 17, 2004.

17 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).

18 On March 1, 2004, the EU began to impose 5-percent tariffs on U.S. products, as planned. On

May 1, 2004, the EU tariffs will also apply to U.S. products exported to the 10 new EU member states.
5-4

further action in light of developments at that time.19 The U.S. Department of

Commerce estimates that if countermeasures are imposed on U.S. products from

March 1, 2004 through March 31, 2005, the EU would collect additional duties valued

at over $475 million.20

Agricultural Biotechnology

In 2003, there were developments in two issues related to agricultural biotechnology.

In May, the United States initiated dispute-settlement proceedings in the WTO to

challenge the EU’s de facto moratorium on approvals of genetically modified crops

and food products. According to the USTR, the EU’s de facto moratorium has hurt U.S.

exports of corn and threatens to disrupt U.S. exports of soybeans.21 In a separate issue

related to biotechnology, U.S. exporters expect new EU rules on traceability and

labeling to be “onerous and expensive for producers and foreign suppliers to meet.”22

EU Moratorium

Background

Since October 1998, the EU has applied a moratorium on new approvals of

agricultural biotechnology products (biotech products).23 In addition, since the late

1990s, six EU member states—including Austria, France, Germany, Greece, Italy, and

Luxembourg—have banned certain varieties of biotech corn and rapeseed already

approved by the EU.24 As a result, according to USDA, U.S. exports of agricultural

and food products are increasingly being excluded from the EU market,25 and the ban

19 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).

20 U.S. Department of Commerce, International Trade Administration, “ITA’s Key Links: European

Union (EU) Trade Sanctions Against the United States Resulting from the Foreign Sales

Corporation/Extraterritorial Income (FSC/ETI) Dispute in the World Trade Organization (WTO),” found

at http://www.ita.doc.gov/eu_030104.html, retrieved Mar. 3, 2004.

21 USTR, 2004 National Trade Estimate Report of Foreign Trade Barriers, 2004, p. 142.

22 Ibid.

23 U.S. Department of Agriculture (USDA), “Five Years of U.S. Patience, Five Years of European

Delays,” Fact Sheet, found at http://www.usda.gov/news/releases/2003/05/fs40156.htm, retrieved

Oct. 16, 2003.

24 Ibid. Also see,WTO, European Communities–Measures Affecting the Approval and Marketing of

Biotech Products, “Request for Consultations by the United States,” WT/DS291/1, G/L/627,

G/SPS/GEN/397, G/AG/GEN/60, G/TBT/D/28, May 20, 2003, Annex II.

25 USDA, “U.S. and Cooperating Countries File WTO Case Against EU Moratorium On Biotech

Foods and Crops,” press release, May 13, 2003; and WTO, European Communities–Measures Affecting

the Approval and Marketing of Biotech Products, “Request for the Establishment of a Panel by the United

States,” WT/DS291/23, Aug. 8, 2003.
5-5

“effectively prohibits most U.S. corn exports to Europe.”26 The U.S. Government

estimates the lost corn sales alone at several hundred million dollars a year.27

Furthermore, the United States is concerned about the possible “ripple” effects of the

EU decision to ban biotech products.28 According to Ambassador Zoellick, “biotech

food helps nourish the world’s hungry population, offers tremendous opportunities for

better health and nutrition, and protects the environment by reducing soil erosion and

pesticide use.”29 However, the “EU moratorium has sent a devastating signal to

developing countries....,” some of which have refused U.S. food aid, or have limited

biotech plantings due to concerns that their exports to the EU would suffer.30

According to Secretary of Agriculture Veneman, “the EU actions threaten to deny the

full development of a technology that holds enormous potential benefits to both

producers and consumers worldwide....”31

Developments during 2003

On May 13, 2003, the United States requested consultations with the EU to address the

biotech moratorium, the first step in the WTO dispute-settlement process. Canada and

Argentina also requestedWTO consultations with the EU. The United States claims that

the biotech moratorium and the national marketing and import bans maintained by

the EU member states are inconsistent with the Agreement on the Application of

Sanitary and Phytosanitary Measures (SPS Agreement), the General Agreement on

Tariffs and Trade 1994 (GATT 1994), the Agreement on Agriculture (Agriculture

Agreement), and the Agreement on Technical Barriers to Trade (TBT Agreement).32

26 USDA, “The EU Ban On Agricultural Biotech Products is Illegal,” Fact Sheet, found at

http://www.usda.gov/news/releases/2003/05/fs20156.htm, retrieved Oct. 16, 2003.

27 Press Conference with Agriculture Secretary Ann M. Veneman and U.S. Special Trade

Representative, Ambassador Robert B. Zoellick regarding the EU Moratorium on Biotech Crops and

Food, May 13, 2003, found at http://www.usda.gov/news/releases/2003/05/0157.htm, retrieved

Oct. 16, 2003.

28 For example, see U.S. Mission to the EU, “Bush: U.S. Will Not Relent in War Against Terrorism,”

remarks by President Bush before the U.S. Coast Guard Academy, May 21, 2003 found at

http://www.useu.be/Terrorism/USResponse/May2103BushTerrorism.html, retrieved Nov. 21, 2003;

Press Conference with Agriculture Secretary Ann M. Veneman and U.S. Special Trade Representative,

Ambassador Robert B. Zoellick regarding the EU Moratorium on Biotech Crops and Food, May 13, 2003,

found at http://www.usda.gov/news/releases/2003/05/0157.htm, retrieved Oct. 16, 2003; and U.S.

Department of State, “Discussion on the WTO Case on the EU Biotech Moratorium,” Foreign Press Center

briefing, Washington, D.C., May 14, 2003, found at http://www.state.gov/e/rls/rm/2003/

20727.htm, retrieved Nov. 21, 2003.

29 USDA, “U.S. and Cooperating Countries File WTO Case Against EU Moratorium On Biotech

Foods and Crops,” press release, May 13, 2003.

30 Ambassador Zoellick, Press Conference with Agriculture Secretary Ann M. Veneman and U.S.

Special Trade Representative, Ambassador Robert B. Zoellick regarding the EU Moratorium on Biotech

Crops and Food, May 13, 2003, found at http://www.usda.gov/news/releases/2003/05/0157.htm,

retrieved Oct. 16, 2003.

31 USDA, “U.S. and Cooperating Countries File WTO Case Against EU Moratorium On Biotech

Foods and Crops,” press release, May 13, 2003.

32 WTO, European Communities–Measures Affecting the Approval and Marketing of Biotech

Products, “Request for Consultations by the United States,” WT/DS291/1, G/L/627, G/SPS/GEN/397,

G/AG/GEN/60, G/TBT/D/28, May 20, 2003.
5-6

The consultations failed to resolve the dispute, and the United States, Canada, and

Argentina requested establishment of a dispute-settlement panel. In August 2003, the

Dispute Settlement Body (DSB) agreed to form a single panel to consider the matters

raised by the United States, Canada, and Argentina.33

In a joint press release announcing the U.S. request for establishment of a WTO panel,

USDA and USTR stated that the SPS agreement

“recognizes that countries are entitled to regulate crops and food products to

protect health and the environment. The WTO SPS agreement requires,

however, that members have sufficient scientific evidence’ for such measures,

and that they operate their approval procedures without $undue delay.’

Otherwise, there is a risk countries may, without justification, use such

regulations to thwart trade in safe, wholesome, and nutritious products.”34

In announcing the request for the panel, the United States reiterated that “as the EC’s

own scientists have stated, there is no scientific basis for either the approval

moratorium or the member State bans.”35 Furthermore, the United States clarified that

the approval procedures for biotech products set out in EU legislation “are not thefocus

of the U.S. complaint.” Rather “the United States only asks that those procedures be

permitted to proceed to their normal conclusion.” The U.S. panel request lists over 30

biotech products that have been affected by the moratorium.36 As of year end 2003,

the panelists had not yet been selected for the dispute-settlement panel.37

EU Regulations

On July 22, 2003, the Council of Ministers formally adopted regulations covering (1)

genetically modified (GM) food and feed38 and (2) the traceability39 and labeling of

33U.S. Department of State telegram, “Report of Aug. 29, 2003, DSB Meeting,” message reference

No. 2946, prepared by U.S. Mission to the WTO, Geneva, Sept. 15, 2003; and WTO, “WTO News

Items, Dispute Settlement Body, 29 Aug. 2003, DSB Establishes 6 Panels to Examine 10 Complaints,”

found at http://www.wto.org/english/news_e/news03_e/dsb_29aug03_e.htm, retrieved Jan. 21,

2004.

34 USDA and USTR, “United States Requests Dispute Panel in WTO Challenge to EU Biotech

Moratorium,” press release 03-54, Aug. 7, 2003.

35U.S. Department of State, “U.S. Request forWTO Panel on European Biotech Moratorium,” Linnet

Deily, U.S. Representative to the World Trade Organization, Statement to the WTO Dispute Settlement

Body, Geneva, Switzerland, Aug. 18, 2003, found at http://www.state.gov/e/eb/rls/rm/2003/

23372.htm, retrieved Nov. 26, 2003.

36 Ibid.

37 The panel was established in March 2004. WTO, European Communities–Measures Affecting

the Approval and Marketing of Biotech Products, “Constitution of the Panel Established at the Request of

the United States, Canada, and Argentina,” WT/DS291/24, Mar. 5, 2004.

38 Regulation (EC) No 1829/2003 of the European Parliament and of the Council of 22 September

2003 on Genetically Modified Food and Feed, OJ No. L 268 (Oct. 18, 2003).

39 Traceability refers to the ability to trace biotechnology products through all stages of the

production and distribution chains. This directive introduces for the first time into EU legislation the concept

of traceability specifically for GMOs. See European Commission, Explanatory Memorandum, Regulation

of the European Parliament and of the Council concerning traceability and labelling of genetically

modified organisms and traceability of food and feed products produced from genetically modified

organisms and amending Directive 2001/18/EC, p. 2.
5-7

genetically modified organisms (GMOs).40 These regulations supplement and

provide more details regarding the general provisions in Directive 2001/18. Directive

2001/18 is the main legislation in force in the EU on agricultural biotechnology, and

regulates the authorization and use of GMOs, including GM seed, feed, and food.41

According to the European Commission, the adoption of these two regulations in 2003

completes the legislative framework for regulating agricultural biotechnology in the

EU.42 The two regulations entered into force on November 7, 2003, although they will

not be applied in full until April 2004.43 Both regulations require the European

Commission to review its implementation within 2 years of its entry into force.44

The regulation on GM food and feed provides for the pre-market authorization and

labeling of GM food and feed. The regulation sets a threshold of 0.9 percent for the

adventitious or technically unavoidable GM material in conventional food and feed,

above which labelling that identifies the presence of GM material is compulsory. The

regulation also establishes a 0.5-percent tolerance threshold for the unintended

presence of GM material in food and feed that has not yet been authorized but which

has received a favorable EU scientific risk assessment. According to the European

Commission, above this threshold the product will not be allowed on the market. The

provision establishing the 0.5 percent tolerance threshold will expire in 3 years, after

which the threshold will fall to zero.45

The regulation on traceability and labelling amends Directive 2001/18 to establish

specific EU-wide requirements for the traceability and labelling of GMOs. It also

establishes traceability requirements forfood and feed produced from GMOs. Like the

regulation on GM food and feed, this regulation sets a tolerance threshold of 0.5

percent for the unintended presence of GMOs, and a threshold of 0.9 percent for

compulsory labelling.46

40 Regulation (EC) No 1830/2003 of the European Parliament and of the Council of 22 September

2003 Concerning the Traceability and Labelling of Genetically Modified Organisms and the Traceability

of Food and Feed Products Produced From Genetically Modified Organisms and Amending Directive

2001/18/EC, OJ No. L 268 (Oct. 18, 2003).

41 Directive 2001/18/EC of the European Parliament and of the Council of 12 March 2001 on the

Deliberate Release into the Environment of Genetically Modified Organisms and Repealing Council

Directive 90/220/EEC, OJ No. L 106 (April 17, 2001). For more information on this directive, see USITC,

The Year in Trade: OTAP, 2002, USITC publication 3630, pp. 5-5 to 5-8.

42 European Commission, “European Legislative Framework for GMOs is Now in Place,” press

release IP/03/1056, July 22, 2003; and European Commission, “State of Play on GMO Authorizations

Under EU Law,” press release MEMO/03/221, Nov. 7, 2003.

43 Regulation 1829/2003, art. 49; Regulation 1830/2003, art. 13; and European Report,

“Biotechnology: Traceability and GMO Labelling Rules Come Into Force,” No. 2819 (Nov. 13, 2002), p.

IV-2.

44 Regulation 1829/2003, art. 48; Regulation 1830/2003, art. 12.

45 Regulation 1829/2003, arts. 12, 24, and 47; European Commission, “European Legislative

Framework for GMOs is Now in Place,” press release IP/03/1056, July 22, 2003; and U.S. Department

of State telegram, “Status Request for Biotechnology Regulations,” message reference No. 4929,

prepared by U.S. Mission to the EU, Oct. 22, 2003.

46 Regulation 1830/2003; and European Commission, “European Legislative Framework for

GMOs is Now in Place,” press release IP/03/1056, July 22, 2003.
5-8

In testimony before a Congressional committee in July 2003, the Principal Deputy

Assistant Secretary of State for European and Eurasian Affairs Charles Ries, said these

regulations may “constitute a technical barrier to trade. The regulations will do little to

restore public confidence and will be costly to implement, difficult to enforce, and could

put existing biotech trade at risk.”47 On November 25, 2003, a group of over 20 U.S.

agricultural organizations wrote a letter to Ambassador Zoellick urging the U.S.

administration to initiate a WTO dispute settlement proceeding. These groups claim

that the new EU rules are “non-tariff trade barriers” and “will result in significant losses

to the U.S. food and agriculture industry.”48

Canada

Bilateral two-way trade between the United States and Canada, the largest in the

world between two countries, was valued at over $1 billion a day during 2003.

U.S.-Canadian commercial relations are governed in large part by the North

American Free Trade Agreement (NAFTA), which evolved from a bilateral free trade

agreement, the U.S.-Canada Free Trade Agreement (CFTA), signed in 1988, and

folded into the NAFTA in 1994.49 The bilateral phase-out of duties under

CFTA/NAFTA was completed on January 1, 1998. This provided duty-free status for

substantially all goods originating in the United States and Canada.50 The major

trade-related issue in 2003 between the United States and Canada continued to

47 Charles Ries, Principal Deputy Assistant Secretary of State for European and Eurasian Affairs,

testimony for the House International Relations Committee, July 15, 2003, found at

http://wwwc.house.gov/international_relations/108/ries0722.htm, retrieved Jan. 29, 2004. See also,

U.S. Department of State, Office of the Spokesman, Taken Question from July 2, 2003 Daily Press

Briefing, “EU: European Parliament Legislation on Biotech Food,” July 3, 2003, found at

http://www.state.gov/r/pa/prs/ps/2003/22236.htm, retrieved Nov. 26, 2003. For more details on

the U.S. position, see WTO, “Response From the European Commission to Comments Submitted by WTO

Members Under Either or Both G/TBT/N/EEC/7 and G/SPS/N/EEC/150 (Proposal for a Regulation of

the European Parliament and of the Council on Traceability and Labeling of Genetically Modified

Organisms and Traceability of Genetically Modified Food and Feed–COM(2001)182 Final)”,

G/SPS/GEN/338, G/TBT/W/180, July 26, 2002.

48 Letter to Ambassador Zoellick, Nov. 25, 2003, from the American Farm Bureau Federation,

American Feed Industry Association, American Meat Institute, American Seed Trade Association,

American Soybean Association, Biotechnology Industry Organization, Corn Refiners Association, Corn

Refiners Association, CropLife America, Grocery Manufacturers of America, National Association of

State Departments of Agriculture, National Association of Wheat Growers, National Corn Growers

Association, National Cotton Council, National Grain and Feed Association, National Food Processors

Association, National Grain Trade Council, National Oilseed Processors Association, National

Renderers Association, North American Millers Association, U.S. Grains Council, USA Rice, and Wheat

Export Trade Education Committee, found at http://www.ncga.com/letters/index.html, retrieved Jan.

29, 2004.

49 Additional information on NAFTA is provided in chapter 3.

50 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. The CFTA entered into

force in January 1989 and allowed for successive duty reductions over a 10-year period. NAFTA 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.
5-9

involve softwood lumber after the expiration in the spring of 2001 of a bilateral

agreement between the two countries governing trade in that sector and the resolution

of subsequent trade disputes.

Following two consecutive years of decline, U.S. trade with Canada increased in

2003. U.S. exports, valued at $148.7 billion, increased over $6 billion (4.4 percent)

from 2002, while U.S. imports from Canada totaled $224.0 billion, an increase of

over $13 billion (6.4 percent) from 2002. The leading U.S. exports to Canada in 2003

were all major motor vehicle products, including parts and accessories for bodies of

motor vehicles, passenger motor vehicles, and parts and accessories for motor

vehicles, and piston engines. The leading U.S. imports from Canada during 2003

included passenger motor vehicles, natural gas, and crude petroleum. The U.S. trade

deficit with Canada was $75.3 billion, a nearly 11 percent increase from 2002.

U.S.-Canadian trade data are shown in tables A-19 through A-21.51

Softwood Lumber

During 2003, the United States and Canada were awaiting decisions from both

NAFTA and WTO dispute settlement panels addressing final affirmative

determinations made by Commerce and the USITC, relating to certain softwood

lumber products from Canada. These panels were established to review Canadian

challenges to the final affirmative antidumping (AD), countervailing duty (CVD), and

injury determinations that had been made by Commerce and the ITC in the spring of

2002.

In 2003, NAFTA review panels returned decisions on the final affirmative

antidumping, countervailing duty, and injury determinations that had been brought to

the Secretariat in the spring of 2002.

At yearend 2003, the WTO review panels had issued reports on the countervailing

duty determination made by Commerce, however no report had yet been issued on the

antidumping and injury determinations made by Commerce and the ITC.

The status of the 2003 NAFTA and WTO dispute settlement panels, including the

appeals and decisions, are discussed below.

Background

The petitions that led to the CVD and AD orders were filed with Commerce and the

USITC in April, 2001, following the expiration of the U.S.-Canada Softwood Lumber

Agreement (SLA).52 Although negotiations were conducted, the United States and

51 U.S. trade with NAFTA partners is shown in table 4-2.

52 The SLA, in effect during 1996-2001, expired in March 31, 2001. Under the SLA, Canada agreed

to impose a fee on softwood lumber exports to the United States above specified limits, and the United

States committed not to initiate or otherwise take action unver several U.S. trade statutes with respect to

softwood lumber imports from Canada.
5-10

Canada did not reach a new agreement before the SLA expired. The U.S. lumber

industry filed petitions53 with Commerce and the Commission under the U.S.

countervailing duty (CVD) and antidumping (AD) laws in 2001. Investigations were

initiated, and both agencies issued preliminary affirmative determinationsin 2001 and

final affirmative determinations in 2002.

In making final affirmative determinations, Commerce on March 22, 2002, found a

countrywide countervailable subsidy of 18.79 percent, and margins of dumping

ranging from 2.18 percent to 12.44 percent.54 On May 16, 2002, the Commission

determined that the U.S. lumber industry was threatened with material injury by

reason of dumped and subsidized imports from Canada, thus triggering the

imposition of permanent duties.55 These three decisions were appealed by Canada

through both the NAFTA and WTO dispute settlement mechanisms.

2003 NAFTA Review Panel Decisions

Antidumping determination

On July 17, 2003 a binational panel unanimously affirmed in part and remanded in

part Commerce’s final affirmative antidumping determination that certain softwood

lumber was exported from Canada to the United States during the period April 1,

2000 to March 31, 2001 at prices that were less than fair value (LTFV).56 The Panel

ruled in favor of the United States that Commerce acted lawfully in its initiation of the

dumping investigation, and that Commerce’s practice of “zeroing” was consistent with

U.S. domestic law. However the Panel found that Commerce had not made

adjustments for differences in physical characteristics between softwood lumber

products, and that more information was required to justify Commerce’s single “class

or kind” merchandise determination with respect to engineered wood products.

Consequently, the Panel found that Commerce made calculation errors in the costs for

specific Canadian respondents.

The NAFTA panel remanded these issues to Commerce, and ordered it to issue a

remand determination within sixty days, recalculating the antidumping duties it had

imposed on Canada’s softwood lumber industry. Commerce filed a Determination on

53 The petitioners included: Coalition for Fair Lumber Imports Executive Committee, Washington,

D.C.; the United Brotherhood of Carpenters and Joiners, Portland, OR; and the Paper, Allied-Industrial,

Chemical and Energy Workers International Union, Nashville, TN. USITC, Conditions of Competition in

the U.S. Market forWood Structural Building Components, investigation No. 332-445, USITC publication

3596, April 2003.

54 67 F.R. 15545, April 2, 2002. Commerce exempted from the CVD determination softwood

lumber products from the Maritime Provinces unless they had been produced on Crown lands.

55 USITC, Softwood Lumber from Canada, USITC publication No. 3509, investigation Nos.

701-TA-414 and 731-TA-928 (Final), May 2002.

56 See Certain Softwood Lumber Products from Canada (Notice of Amended Final Determination of

Sales at Less than Fair Value and Antidumping Duty Order), 67 Fed. Reg. 36068 (May 22, 2002),

corrected, May 30, 2002, 67 Fed. Reg. 37775 (May 30, 2002).
5-11

Remand on October 15, 2003, and the Panel issued a decision on this remand

determination on March 5, 2004, and Commerce issued a second remand

determination on April 21, 2004 which affirmed Commerce in part and remanded on

the following issues:

1) to recalculate Tembre’s General and Administrative expenses

2) to calculate the by product offset to West Fraser’s production, and

3) to treat Slawn’s future trading results upon adjustment

Countervailing duty determination

On August 13, 2003, a binational panel unanimously affirmed in part and remanded

in part Commerce’s final affirmative countervailing duty determination. In its Final

Determination, Commerce concluded that provincial stumpage programs under

which Canadian provinces confer rights to harvest standing timber on

government-owned forestlands are subsides to producers of softwood lumber which

are countervailable under U.S. law.57 The NAFTA panel affirmed Commerce that

provincial stumpage programs provide a financial contribution, but found that

Commerce had not proved that Canadian softwood lumber producers benefitted from

provincial stumpage programs. In that regard, the NAFTA panel found that when

Commerce used cross-border benchmarks to determine whether provincial stumpage

programs confer a benefit, it incorrectly based its benefit finding on the U.S. stumpage

prices rather than on the prevailing market conditions in Canada.58

In its August 2003 decision, the Panel remanded to Commerce to reconsider the

methodology used to measure the benefit accruing to Canadian lumber producers

from Canadian Provincial stumpage programs as well as certain company exclusion,

scope, and calculation issues.59 Commerce filed its Determination on Remand on

January 12, 2004.60

Injury determination

On September 5, 2003, the NAFTA Dispute Panel unanimously affirmed in part and

remanded in part the ITC’s determinations that Canada’s softwood lumber exports

57 See Notice of Final Affirmative Countervailing Duty Determination and the Final Negative Critical

Circumstances Determination: Certain Softwood Lumber Products from Canada, 67 FR 15545 (April 2,

2002) ($ Final Determination).

58 NAFTA, Certain Softwood Lumber Products from Canada (Department of Commerce Final

Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances

Determination), USA-CDA-2002-1904-03 (Active), found at http://www.nafta-sec-alena.org/

DefaultSite/dispute/index_e.aspx?articleid=380, retrieved Jan. 27, 2004.

59 U.S. International Trade Administration, Remand Determination Implementing a NAFTA Panel

Decision: Canada’s Challenge to the Final Determination in the Countervailing Duty Investigation on

Imports of Softwood Lumber from Canada, found at http://www.ita.doc.gov/media/FactSheet/

0104/lumber_011204.html, retrieved Jan. 22, 2004.

60 For more on Commerce’s Jan. 12, 2004 Remand Determination please see:

http://www.ita.doc.gov/media/FactSheet/0104/lumber_011204.html.
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threatened to materially injure the U.S. softwood lumber industry. The Panel ordered

the ITC to issue a remand determination within 100 days.61

On December 15, 2003, the ITC delivered its remand determination to the NAFTA

binational panel.62 The USITC reaffirmed on remand that an industry in the United

States is threatened with material injury by reason of imports of softwood lumber from

Canada that Commerce had determined are subsidized and sold in the United States

at less than fair value. The Panel’s decision on the December 15 remand was released

on April 29, 2004. The Commision issued a second remand determination on June 10,

2004.

2003 WTO Review Panel Decisions

Antidumping determination

The Panel was established on January 8, 2003, and was composed on March 4,

2003. The Final Report of the Panel was to be circulated in April 2004.

Countervailing duty determination

On August 29, 2003, the WTO panel found that Commerce Final Countervailing Duty

Determination was inconsistent with the provisions afforded in the Subsidies and

Countervailing Measures Agreement (SCM) and of GATT 1994.63

On October 21, 2003, the United States notified its decision to appeal to the Appellate

Body certain issues of law and certain legal interpretations developed by the Panel.64

Canada also challenged a number of aspects of the final determination by the

Commerce that led to the imposition of the duties.65

On December 17, 2003, in a communication from the Appellate Body, it was

announced that the Appellate Body Report in this appeal was scheduled to be

circulated to WTO members by January 19, 2004.

61 NAFTA, A certain Softwood Lumber Products from Canada (USITC Final Injury Determination),

USA-CDA-2002-1904-07 (Active), found at http://www.nafta-sec-alena.org/DefaultSite/dispute/

index_e.aspx?articleid=380, retrieved Jan. 27, 2004.

62 WTO, A United States-Final Dumping Determination on Softwood Lumber Products from

Canada, WT/DS264/5, (03-6458), Dec 8, 2003.

63 WTO, A United States - Final Countervailing Duty Determination With Respect to Certain

Softwood Lumber from Canada - Report of the Panel, WT/DS267/R, (03-4360), Aug. 29, 2003.

64 WTO, A United States - Final Countervailing Duty Determination With Respect to Certain

Softwood Lumber From Canada- Notification of Appeal By the United States Under Paragraph 4 of

Article 16 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), @

WT/DS257/8, (03-5606), Oct. 24, 2003.

65 WTO, A United States - Final Countervailing Duty Determination With Respect to Certain

Softwood Lumber from C anada, @ WT/DS257/AB/R, Jan. 19, 2004.
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Injury determination

The Panel was established on May 7, 2003, submissions and meetings were held in the

summer and fall of 2003, and the Panel was expected to circulate its report in March

2004.

Mexico

Mexico maintained its position in 2003 as the third-largest U.S. trading partner after

the European Union, Canada, and before China. U.S. exports to Mexico in 2003 were

valued at $83.1 billion, a continued decline (3.4 percent) from $86.1 billion in 2002.

U.S. imports from Mexico were valued at $137.2 billion, a continued increase (2.3

percent) from $134.1 billion in 2002. Falling U.S. exports and rising U.S. imports

widened the U.S. trade deficit with Mexico in 2003 once again, to $54 billion from $48

billion in 2002. U.S. exports to Mexico were depressed principally by a continuing

decline in exports of parts for the assembly of computers, telephone equipment, and

motor vehicles. The rise of overall U.S. imports from Mexico were accounted for to a

large degree by higher prices for petroleum. U.S.-Mexican trade data are shown in

tables A-22 through A-24.

Agricultural imports from the United States and their possible adverse effects on

Mexican farming interests, as perceived by Mexico, continued to be in the forefront of

U.S.-Mexican trade relations in 2003. Mexico is currently the United States’ third

largest single-country export market. A year-end event on another notable trade issue

was that the WTO supported a long-standing U.S. complaint regarding Mexico’s

telecommunications practices. However, the year 2003 brought no major changes

with respect to some other, important long-standing trade issues, including bilateral

trade in sweeteners, and U.S. implementation of NAFTA cross-border trucking

provisions.

Restrictions on Agricultural Imports from the United

States

The year 2003 began with the elimination of the remaining tariffs on some 90 percent

of Mexico’s imports of agricultural and livestock products from the United States

(excluding corn, sugar, dry edible beans, and powdered milk), as stipulated by the

North American Free Trade Agreement (NAFTA).66 Remaining tariffs will be phased

out by January 1, 2008. Although Mexico’s tariffs on most U.S. farm products had

been less than 2 percent ad valorem before they were eliminated, the events triggered

opposition by Mexican growers and ranchers. In response to pressure from these

66 United States Department of Agriculture, Foreign Agricultural Service, “Mexico’s NAFTA Tariff

Schedule for 2003,” Gain Report MX3011, Jan. 23, 2003.
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groups, which already escalated during 2002,67 Mexican authorities began to

seriously consider NAFTA and the U.S. farm bill of 200268 as possible problems for

domestic farming interests.

On April 28, 2003, Mexican President Vicente Fox signed a “National Agreement on

Agriculture (NAA),” a follow-up to the “Agricultural Armor Package” announced in

November 2002.69 NAA is the first framework accord in the NAFTA era between the

government and farmers of Mexico that contains various programs in support of

domestic farmers and rural communities.70 In the area of trade with NAFTA partners,

major provisions of the NAA included the following:

H The Government of Mexico (GOM) and agricultural producer groups will

conduct a joint evaluation of the NAFTA agricultural chapter and its effect on

Mexico’s rural sector.

H The GOM and agricultural producer groups will conduct a joint study of the

U.S. farm bill.

H The GOM will address the continued use of agricultural subsidies by the

United States and Canada since the implementation of the NAFTA; the GOM

will consider applying all available defense mechanisms as provided for in

the NAFTA. In addition, the GOMwill seek consultations with the United States

and Canada to consider the addition of new articles and annexes to NAFTA

to address existing agricultural asymmetries.

H The GOM will support Mexico’s recognition as a developing country under

the provisions of the WTO and propose the immediate elimination of export

and internal subsidies that distort international trade. In addition, the GOM

will reserve the right to reintroduce tariffs and quantitative restrictions for

reasons of national sovereignty and security.71

NAA also calls for $267 million newly budgeted funds to pay for a variety of

programs, including farm credits, rural roads and housing, electricity, and

educational and health services for farmers.

In recent years Mexico has issued antidumping duty orders, applied safeguards SPS

measures, and invoked discriminatory custom procedures. During 2003, Mexico

eliminated or delayed implementation of some of these barriers, but some remain and

new ones are under consideration.

67 For background, see USITC, The Year in Trade, 2002: OTAP, USITC publication 3630, Aug.

2003, pp. 5-11 to 5-15.

68 Farm Security and Rural Investment Act, Pub. L. 107171.

69 For background, , see USITC, The Year in Trade: OTAP, 2002, USITC publication 3630, Aug.

2003, pp. 5-11 to 5-15.

70 “Government of Mexico Signs National Agreement on Agriculture, ”United States Department of

Agriculture, Foreign Agricultural Service, May 9, 2003; Gain Report #MX3067; found at

http//:www.USDA.Gain Report retrieved Nov. 29, 2003.

71 Ibid.
5-15

Sweetener imports continued to be a major source of disagreement between the two

countries during the year. Although on May 20, 2002, Mexico removed the

antidumping duties levied on high-fructose corn syrup (HFCS) imports, as both the

WTO and NAFTA ruled that they conflicted with Mexico’s commitments,72 in January

2002, the Mexican Congress imposed a 20-percent sales and distribution tax on soft

drinks sweetened with any sweetener other than sugar. This tax effectively eliminated

the use of HFCS in the Mexican beverage industry; significantly reduced U.S. sales to

Mexico of HFCS, and lowered U.S. corn exports to Mexico used to produce HFCS.73

The Mexican Congress voted in December 31, 2002 to continue this tax, despite efforts

by various parties, including President Fox, to have it removed.74

In June 2003, the United States requested WTO consultations with respect to

antidumping measures applied by Mexico to imports of U.S. beef and U.S. long-grain

white rice, and with respect to Mexico’s trade statute. The United States alleged that the

measures, applied initially in April 2000 and June 2002, respectively, and certain

provisions of Mexico’s trade law, are inconsistent with Mexico’s obligations under the

WTO antidumping agreement. The consultations were held on July 31 and August 1,

2003, and failed to resolve the issues. In September 2003, the United States formally

requested establishment of a WTO panel to review Mexico’s measures on long grain

white rice, and a panel was formed in November.

Mexico imposed a provisional NAFTA safeguard measure on imports of U.S. chicken

leg quarters in January 2003, and a final safeguard measure on July 24, 2003.

Through an exchange of letters on July 24 and 25, the two countries’ reconciled their

positions on this issue. Mexico agreed to provide compensation to the United States for

Mexico’s safeguard measure. The United States consented to the application of the

safeguard past December 31, 2003 – the expiration of the phase-out period for

Mexican tariffs on U.S. chicken leg quarters. Mexico committed, among other things,

not to impose any additional import restrictions on poultry products; to eliminate

certain sanitary restrictions on such products; and to consult with the United States in

advance regarding new sanitary measures.75

72 For background, see USITC, The Year in Trade, 2000: OTAP, USITC publication 3428, June

2001, pp. 4-17 to 4-18; USITC, The Year in Trade, 2001: OTAP, USITC publication 3510, May 2002, pp.

5-16 to 5-17; USITC, The Year in Trade, 2002: OTAP, USITC publication 3630, Aug. 2003, pp. 5-15 to

5-17.

73 USTR, “USTR, , “2004 Trade Policy Agenda and 2003 Annual Report, of the President of the

United States on the Trade Agreements Program,” March 2004, pp. 122-123.

74 The decision to sustain the tax was subsequently published in a Diario Oficial, Dec. 31, 2003. In

March, 2004, the United States filed a WTO complaint against Mexico against this tax. WT/DS295/1.

See also World Trade Organization, “Mexico - Definitive Anti-dumping Measures on Beef and Rice,

Request for Consultations by the United States,” June 23, 2003.

75 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.
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However, despite progress made towards resolving agricultural problems, affected

U.S. producers, U.S. exporters and the U.S. Government have become increasingly

concerned about Mexico’s unilateral restrictions against certain imports from the

United States. On September 23, 2003, the U.S. Senate Committee on Finance held a

hearing on Mexican barriers imposed against such imports and the harm they may

have caused to U.S. interests.76

Telecommunications Services

On November 26, 2003, a WTO panel issued interim ruling in the long-standing

bilateral telecommunications dispute and theWTO panel ruling was released on April

2, 2004. 77

The dispute concerns regulations that governed the operations of Teléfonos de Mexico

(Telmex), Mexico’s largest telecommunications company and interconnection fees

imposed by Telmex to complete long distance calls.78

Market barriers in the Mexican telecommunications sector remained a serious concern

for the United States during 2003 as Mexico continued to fail to enforce its own

regulations. As a result, wholesale telecommunications rates for U.S.-Mexico

telephone calls remained at roughly four times their cost, costing U.S. companies and

consumers hundreds of millions of dollars in excess payments a year.79

According to a USTR press release the WTO panel agreed with the United States on

most of the major claims in this dispute, finding:

H Mexico breached its commitment to ensure that U.S. carriers can connect their

international calls to Mexico’s major supplier, Telmex, at cost-based rates.

H Mexico breached its obligation to maintain appropriate measures to prevent

its dominant carrier from engaging in anti-competitive practices, by granting

Telmex the exclusive authority to negotiate the rate that all Mexican carriers

charge U.S. companies to complete calls originating in the United States.

H Mexico breached its obligations under the WTO Services Agreement, the

GATS, by

H failing to ensure that U.S. carriers operating within Mexico can lease lines

from Mexican

76 U.S. Committee on Finance, Senator Chuck Grassley of Iowa, Chairman, press release, Oct. 6,

2003. The letter went to Ernesto Derbez, Foreign Minister; Fernando Canales, Secretary of the Economy;

and Javier Bernardo Usabiaga Arroyo, Secretary of Agriculture.

77USTR, “U.S. Wins Telecommunications Case against Mexico in WTO,” press release 04-17, Mar.

12, 2004.

78 Ibid

79USTR, ““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.
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H carriers (and thereby provide services on a resale basis).80

However, the WTO panel agreed with Mexico’s claim that Mexico’s commitments

under the WTO were valid only in regard to “facilities-based” telecommunications

services, i.e., companies providing services over networks that they own and not those

providing services over leased lines.81

Japan

The U.S. merchandise trade deficit with Japan decreased from $73.0 billion in 2002 to

$69.6 billion in 2003. U.S. exports to Japan increased from $48.3 billion to $48.9

billion or by 1.2 percent during 2002-03. U.S. imports from Japan declined by 2.3

percent from $121.3 billion to $118.5 billion during the same period. The leading

exports to Japan during 2003 were airplanes and other aircraft, parts of airplanes or

helicopters, corn, semiconductors, soybeans, and cigarettes. The leading importsfrom

Japan during 2003 were motor vehicles with cylinder capacity over 3,000 cc,

passenger motor vehicles with cylinder capacity over 1,500 but not over 3,000 cc,

parts and accessories for computers, still video cameras and other video camera

recorders, and parts and accessories for motor vehicles. U.S.-Japan trade data are

shown in appendix tables A-25 through A-27.

The umbrella for bilateral discussions between the United States and Japan was the

“U.S.-Japan Economic Partnership for Growth.” Bilateral consultations were also held

on the following topics: public works, guitar IPR issues, beef safeguards, rice,

phytosanitary issues, visas and passports, wood products, and marine craft.82

U.S.-Japan Economic Partnership for Growth

The U.S.-Japan Economic Partnership for Growth (Partnership) was launched by

President GeorgeW. Bush and Prime Minister Junishiro Koizumi on June 30, 2001. The

purpose of the Partnership was to promote economic growth and open markets by

focusing on sectoral and cross-sectoral issues related to regulatory and competition

policy.83 Several initiatives were started under the Partnership including the

Regulatory Reform and Competition Policy Initiative (Regulatory Reform Initiative), the

80USTR, “U.S. Wins Telecommunications Case against Mexico in WTO,” press release 04-17, Mar.

12, 2004.

81 Ibid

82 U.S. Department of State telegram, “Second Meeting of the U.S.-Japan Trade Forum,” message

reference No. 330052, prepared by U.S. Department of State, Washington, D.C., Dec. 1, 2003.

83 USTR, “Annual Reform Recommendations from the Government of the United States to the

Government of Japan under the U.S.-Japan Regulatory Reform and Competition Policy Initiative,” Oct.

24, 2003, found at http://www.ustr.gov, retrieved Nov. 5, 2003.
5-18

Investment Initiative, the Financial Dialogue, and the Trade Forum.84 A brief

discussion of activities in 2003 follows.

During 2003, Working Groups and the High-Level Officials Group met to discuss

reform proposals under the Regulatory Reform Initiative. The Second Report to

Leaders was submitted to President Bush and Prime Minister Koizumi on May 23,

2003. The report contained regulatory reform measures that Japan had implemented

and would implement.85

On October 24, 2003, the United States submitted its annual reform

recommendations to the Government of Japan under the U.S.-Japan Regulatory

Reform and Competition Policy Initiative. The recommendations focused on issues that

Prime Minister Koizumi had identified as important for reform including

telecommunications, information technologies, medical, energy, and competition

policy. The U.S. recommendations focused particularly on the Special Zones for

Structural Reform that empower local governments in Japan to establish zones where

businesses can operate without onerous regulations. As of October 24, 2003, 164

zones had been approved by the Prime Minister.86 The zones are expected to be of

significant commercial interest to U.S. business such as those that are established at

seven of Japan’s major air and sea ports where overtime charges associated with

customs processing have been cut in half.87 The United States encouraged Japan to

expand the deregulation measures in the zones on a nationwide basis.

Other steps that Japan is to take under the Regulatory Reform Initiative are:

H Introducing competition in the telecommunications sector,

H Extending the term of copyright protection for cinematographic works from

50 to 70 years,

H Expanding the liberalization of the retail electricity sector,

H Improving the speed and efficiency of approval processes for medical devices

and pharmaceuticals,

H Strengthening the Japan Fair Trade Commission (JFTC),

H Improving merger techniques, and

84 For additional information on the Partnership, see USITC, The Year in Trade, 2001: OTAP,

publication 3510, pp. 4-25 through 4-27.

85 USTR, 2003 National Trade Estimates Report on Foreign Trade Barriers, Mar. 31, 2004.

86 USTR, “Annual Reform Recommendations from the Government of the United States to the

Government of Japan under the U.S.-Japan Regulatory Reform and Competition Policy Initiative,” Oct.

24, 2003, found at http://www.ustr.gov, retrieved Nov. 5, 2003.

87 USTR, “Second Report to the Leaders on the U.S.-Japan Regulatory Reform and Competition

Policy Initiative,” Fact Sheet, May 23, 2003, found at http://www.ustr.gov, retrieved Nov. 5, 2003,and

USTR, “USTR Zoellick Commends Japan for Deregulation Zones,” press release 03-33, May 23, 2003;

found at http://www.ustr.gov, retrieved Nov. 5, 2003.
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H Reducing overtime fees associated with customs procedures at Japan’s major

air and sea ports.

The Investment Initiative includes laws, regulations, policies, and other measures

intended to improve the climate for foreign direct investment. At the most recent

meeting in November 2003, the topics discussed were mergers and acquisitions, tax,

labor, and land policy.88

The Financial Dialogue serves as a forum for the U.S. Department of the Treasury,

Japan’s Ministry of Finance, and the Financial Services Agency to exchange

information on key macroeconomic and financial sector issues, including

non-performing loans. The third meeting of this group was convened in November

2003 in Washington, D.C.89

The Trade Forum, which is led by USTR and Minsters of Foreign Affairs (MOFA),

focuses on a wide-range of sectoral trade issues of concern to both governments. The

Trade Forum meets at least once per year. At the second meeting of the Trade Forum in

July 2003, issues that were raised included agriculture, public works, and new U.S.

visa and passport regulations.90

China

China is the United States’ third largest trading partner in terms of total trade (exports

and imports), following Canada and Mexico. In 2003, U.S.-China trade totaled $178

billion, an increase of 23 percent compared with 2002. U.S. exports to China

increased by 30 percent to $27 billion in2003. U.S. imports rose 22 percent in 2003 to

$152 billion, resulting in a $125 billion trade deficit with China in 2003. Leading U.S.

exports to China during the year included soybeans, aircraft, integrated circuits,

cotton, and fertilizers. Leading U.S. imports from China included computer input and

output units, parts, and accessories; footwear; portable automatic data processing

machines; transmission apparatus; and video recording devices (tables A-28 through

A-30).

China’s compliance with the terms of its accession to theWTO remained a major focus

of the U.S.-China trade relationship in 2003, which is discussed below. Other issues

during the year included U.S. industry on petitions filed under the China-specific

safeguard mechanism (section 421 of the Trade Act of 1974),91 and actions

88 USTR, 2003 Trade Policy Agenda and 2003 Annual Report, Mar. 2004.

89 Ibid.

90 Ibid.

91 For more information, see the section on Safeguard Actions in chapter 2 of this report and USTR,

2004 Trade Policy Agenda and 2003 Annual Report, Mar. 2004, p. 223.
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addressing three categories of U.S. imports of Chinese textiles and apparel under the

special textile safeguard mechanism.92 Also, President Bush and other U.S.

Government officials urged China to move away from its policy to peg its currency (the

renminbi or RMB) to the U.S. dollar to a policy supporting a market-driven, freely

floating exchange rate.93

U.S. Assessment of China’s WTO Compliance in 2003

On December 11, 2001, China became the 143rd member of the WTO. WTO

accession required China to make 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. USTR

is required to report annually to Congress on China’s compliance with its WTO

commitments.94 In its report covering 2003, USTR reported that although there were

some positive developments, China’s WTO implementation efforts “lost a significant

amount of momentum.”95 Furthermore, unlike 2002, “China’s uneven and incomplete

WTO compliance record can no longer be attributed to start-up problems.”96

Agriculture, services, enforcement of IPR, and transparency of government

regulations across sectors remained major areas of U.S. concern. New issues in 2003

included certain tax and industrial policies that encourage domestic production.97 In

particular, USTR stated that China applies discriminatory value-added tax (VAT) rates

to imports of fertilizers and semiconductors, whereas domestic production either is

exempted from or receives a substantial rebate of the VAT.98 USTR also highlighted

92 For more information, see textiles section and USTR, 2004 Trade Policy Agenda and 2003

Annual Report, March 2004, pp. 223-24.

93 For example, see The White House, Office of the Press Secretary, “Background Briefing by a

Senior Administration Official on the President’s Meeting with the President of China,” Oct. 19, 2003; The

White House, Office of the Press Secretary, “Background Briefing on the President’s Meeting with Chinese

Premier Wen,” Dec. 9, 2003; and Honorable John B. Taylor, Under Secretary of Treasury for

International Affairs, U.S. Department of the Treasury, Testimony before the Full Committee of the House

Committee on Ways and Means, Oct. 30, 2003, found at Internet address

www.waysandmeans.house.gov, retrieved Mar. 29, 2004. In February 2004, U.S. and Chinese officials

met for the first time under the recently agreed technical cooperation program to discuss exchange rate

issues. U.S. Department of State telegram, “First Meeting of the Technical Cooperation Program: U.S.

and China Outline Goals for Further Cooperation on Exchange Rate Management Issues,” message

reference No. 3792, prepared by U.S. Embassy, Beijing, Mar. 5, 2004.

94 Ibid., p. 4.

95 Ibid., p. 3.

96 USTR, 2003 Report To Congress on China’s WTO Compliance, Dec. 11, 2003, p. 1.

97 Ibid., pp. 4-5.

98 USTR, 2003 Report To Congress on China’s WTO Compliance, Dec. 11, 2003, p. 32. On March

18, 2004, the United States requested WTO consultations with China regarding China’s VAT on

integrated circuits. WTO, China–Value-Added Tax on Integrated Circuits, Request for Consultations by

the United States, WT/DS309/1, Mar. 23, 2004.
5-21

China’s proposed industrial policy for the automotive sector, which favors domestic

production through various measures, including restrictions on imports of certain

auto-related products.99

Agriculture

China reduced tariffs on agricultural products as scheduled on January 1, 2003, and

U.S. exports of some agricultural goods continued to climb during the year. However,

USTR cited a number of nontariff barriers that limited U.S. agricultural exports in

2003, including the administration of its tariff-rate quotas (TRQs) and sanitary and

phytosanitary measures. Upon accession, China agreed to establish a TRQ system for

imports of certain bulk commodities, including wheat, corn, cotton, rice, and vegetable

oils. In 2003, the most serious problems with TRQ administration identified in 2002

continued; namely, lack of transparency in TRQ allocation and management,

subdivision of the TRQ into subquotas, small allocation sizes, and burdensome

licensing procedures.100 Following a series of bilateral meetings, China issued new

regulations in October 2003 that addressed most of the U.S. issues and will apply to

shipments beginning January 1, 2004.101

According to USTR, in 2003 China increasingly imposed SPS measures that are

affecting or threatening to affect U.S. shipments of agricultural products. U.S. exports

that have been affected by SPS standards include wheat, raw poultry and meat, and

processed foods that use certain food additives. China also threatened to suspend U.S.

soybean imports from four companies for SPS reasons.102 U.S. officials are also

meeting with their Chinese counterparts to discuss burdensome certification

requirements on imported seafood products and live aquatics.103

Other issues in the agricultural sector that the U.S. Government continued to address

with China in 2003 included systemic problems with biotechnology regulations on

safety, testing, and labeling, affecting mostly soybeans;104 inspection-related

requirements, which USTR states are burdensome, selectively enforced, and are being

used to control the pace and quantity of some imports; and export subsidies on

corn.105

99 USTR, 2003 Report To Congress on China’s WTO Compliance, Dec. 11, 2003, pp. 5, 40-41.

100 Ibid., pp. 4, 46.

101 Ibid., p. 46.

102 As of February 2004, China had not taken measures against the four U.S. soybean shippers.

U.S. Department of State telegram, “Priority Trade Issues, 2003 Year-End Report,” message reference

No. 1560, prepared by U.S. Embassy, Beijing, Feb. 3, 2004.

103 USTR, 2003 Report To Congress on China’s WTO Compliance, Dec. 11, 2003, p. 47.

104 Following a series of extensions in 2002 and 2003 to provide temporary safety certificates, in

February 2004 China issued permanent safety certificates for biotech soybeans. U.S. Department of

State telegram, “Priority Trade Issues, 2003 Year-End Report,” message reference No. 1560, prepared

by U.S. Embassy, Beijing, Feb. 3, 2004; and U.S. Department of State telegram, “JCCT March 9, 2004

Planning Meeting,” message reference No. 3895, prepared by U.S. Embassy, Beijing, Mar. 12, 2004.

105 USTR, 2003 Report To Congress on China’s WTO Compliance, Dec. 11, 2003, pp. 44, 45, 48.
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Services

According to USTR, in the services sector in 2003, “China continued to keep pace

nominally with the opening required by its WTO accession agreement,” but market

access barriers remained in many service sectors. For example, in the banking sector,

excessive working capital requirements and other prudential rules restricted the ability

of foreign banks to establish and expand their market share. Excessive capital

requirements also restricted foreign suppliers of insurance, telecommunications, and

distribution services from entering the market. Other issues included restrictions on the

opening of new branches, in particular in the insurance i.e., and legal services sectors,

as well as a lack of regulatory and licensing transparency, the licensing procedures in

the insurance sector. Other service sectors that were the focus of concerns in 2003

included motor vehicle financing, express delivery services, and construction and

related engineering services. According to USTR, no significant problems had

emerged as of year-end 2003 from China’s implementation of commitments in

audio-visual services, certain professional services, tourism and travel-related

services, educational services, and environmental services.106

Intellectual Property Rights

According to USTR, although some improvements are still required, China’s

framework of IPR laws and regulations is “largely satisfactory.”107 The principal area

of U.S. concern is the lack of effective IPR enforcement,108 resulting primarily from “the

failure to provide a truly deterrent enforcement system.”109 In USTR’s Special 301

Report issued in May 2003, USTR indicated that violations of IPR in China are “still

rampant.”110 More recently, USTR notes that IPR infringements remain

“pervasive....Violations include the rampant piracy of film, music publishing, and

software products; infringement of pharmaceutical, chemical, information

technology, and other patents; and counterfeiting of consumer goods, electrical

equipment, automotive parts, and industrial products.”111 In 2003, China remained

the leading source of counterfeit goods seized on entering the United States.112

106 Ibid., pp. 55-57, 64.

107 Ibid., p. 49.

108USTR, 2003 Report To Congress on China’s WTO Compliance, Dec. 11, 2003, p. 49; and USTR,

2004 Trade Policy Agenda and 2003 Annual Report, Mar. 2004, p. 163.

109 U.S. Department of State telegram, “China IPR: Year 2004 Special 301 Review,” message

reference No. 3185, prepared by U.S. Embassy, Beijing, Feb. 25, 2004. See also, USTR, 2003 Report To

Congress on China’s WTO Compliance, Dec. 11, 2003, p. 52.

110 USTR, 2003 Special 301 Report, found at http://www.ustr.gov/reports/2003/special301-

306.htm, retrieved Apr. 1, 2004.

111 USTR, 2004 Trade Policy Agenda and 2003 Annual Report, Mar. 2004, p. 164.

112 U.S. Department of State telegram, “China IPR: Year 2004 Special 301 Review,” message

reference No. 3185, prepared by U.S. Embassy, Beijing, Feb. 25, 2004.
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Taiwan

In 2003, Taiwan was the 8th largest U.S. trading partner with bilateral trade totaling

more than $47.6 billion, representing a decline of 2.5 percent from $48.8 billion in

2002. The U.S. trade deficit with Taiwan increased by less than 1 percent in 2003 from

approximately $15.3 billion to nearly $15.4 billion. U.S. exports to Taiwan declined by

4 percent to $16.1 billion in 2003 from approximately $16.8 billion in 2002. Leading

U.S. exports to Taiwan consisted of electronic integrated circuits and other electrical

machinery and equipment, aircraft and parts, corn, soybeans, computer equipment,

and munitions. U.S. imports from Taiwan declined by 1.8 percent to approximately

$31.5 billion in 2003 from $32.1 billion in 2002. Leading U.S. imports from Taiwan

consisted of computers and parts, electronic monolithic integrated circuits, and

magnetic media. U.S.-Taiwan trade data are shown in appendix tables A-31 through

A-33.

Intellectual Property Rights Protection

During 2003, Taiwan continued to make significant progress in a number of IPR areas,

especially in IPR-related enforcement actions. An Integrated Enforcement Task Force

(IEFT) was created during 2003 to join forces with the Joint Optical Disk Enforcement

Tasks Force (JODE) to crack down on optical disc media piracy.113 JODE inspected

over 1,000 factories during the year and IEFT made between 300-400 inspections per

month. Taiwan’s enforcement authorities, in cooperation with Microsoft, also

conducted raids that led to arrests against criminal syndicates suspected of producing,

marketing, and distributing counterfeit software. Taiwan’s Intellectual Property Office

has proposed a registration system to simplify power of attorney requirements in

Taiwan. However, piracy remains high and Taiwan remained on USTR’s Priority

Watch List for problems associated with protecting intellectual property rights in 2003.

Even thought the legislative Yuan passed an amendment to the copyright law that

made intellectual property violations a public crime, Taiwan still lacks an effective

copyright law.114

Korea

U.S. two-way trade with Korea totaled more than $59 billion in 2003. U.S. exports to

Korea grew 6.5 percent to $22.5 billion in 2003, after rising 1.2 percent in 2002. U.S.

imports grew 4.7 percent to $36.9 billion, after rising 1.0 percent in 2002. The United

States recorded a $14.4 billion trade deficit with Korea in 2003. Leading U.S. exports

113U.S. Department of State, “Taiwan Special 301 Review: AIT Submission,” message reference No.

533, prepared by AIT, Taipei, Feb. 24, 2004.

114 U.S. Department of State, “Taiwan: Small Steps on IPR Enforcement,” message reference No.

2839, prepared by AIT, Taipei, Oct. 1, 2003.
5-24

to Korea in 2003 included computer chips, aircraft, machines and mechanical

appliances having individual functions (mostly semiconductor production machinery),

and aircraft parts. Leading U.S. imports from Korea include transmission apparatus

incorporating reception apparatus (mostly cellular phones), automobiles, and

computer chips. U.S.-Korea trade data are shown in appendix tables A-34 through

A-36.

U.S.-Korean trade relations in 2003, reflected the continued relaxation of trade

frictions in recent years. The two countries meet regularly to discuss bilateral trade

issues. Significant bilateral trade issues between the United States and Korea during

2003 included IPR protection and telecommunications.

Intellectual Property Rights Protection

USTR placed Korea on the Special 301 Priority Watch list in 2000, citing a number of

long-standing intellectual property rights (IPR) issues, concerns about enforcement,

and recent amendments to IPR legislation.115 Based on commitments made in trade

meetings between the United States and Korea in April 2002, Korea was downgraded

to the Watch List in 2002.116

In the 2003 Special 301 Report,117 USTR said 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. 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 the Priority Watch List was to be based on Korea’s

taking action in all of the following areas:

1. Take all actions necessary to ensure that the Standing Inspection Team (SIT) is

granted police powers at the earliest opportunity;

2. 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 available and the full right of communication to the public,

and seek its enactment by the end of 2003; and

3. Provide additional, new data on the Republic Of Korea Government’s

(ROKG’s) enforcement efforts that is sufficient to more fully evaluate the full

range of its enforcement activities, including the imposition of deterrent

penalties, that are sufficient to allow right holders the opportunity to take

action against infringers who are not convicted.

115 USTR, 2000 Special 301 Report, May 1, 2000, p. 17.

116 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.

117 USTR, 2003 Special 301 Report, May 1, 2003, p. 24.
5-25

4. In addition, in order to resolve the film distribution issues, the Government of

Korea 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:

a. clearly provide the KMRB the authority to reject false applications,

b. clearly provide the KMRB the authority to cancel existing ratings that

were approved on the basis of a false application, and

c. not place undue burdens on legitimate rights holders to prove

their rightful ownership;

5. Fully and faithfully implement its agreement on the Wireless Broadband

Internet Platform for Interoperability (WIPI) intellectual property issue.118

At the end of 2003, progress had been made on a number of issues broached in the

2003 Special 301 Report, while less progress had been made on others. In July 2003,

the Korean National Assembly passed legislation to give police powers to the SIT of the

Ministry of Information and Communication, with the new authority taking effect on

October 18, 2003. The United States continues to be concerned, however, about the

transparency of the SIT enforcement process.119 Legislation to amend Korea’s

Copyright Act to give exclusive rights for the on-line dissemination of recorded music

had not been passed at year-end, and the United States is concerned that proposed

legislation will not provide a full set of exclusive rights that will stem on-line piracy.120

During 2003, the Korean Government provided regular quarterly reports on

enforcement activities, but did not provided new data by which the effectiveness of its

enforcement efforts could be better evaluated.121 In December 2003, legislation was

passed that the Korean Government grants the KMRB authority to identify and stop the

fraudulent registration of videos, DVDs, and games. The U.S. Government expressed

concern that draft implementing regulations might place undue burdens on legitimate

rights holders to prove their rightful ownership. However, the KMRB has committed to

redrafting the regulations to address U.S. concerns.122 Developments related to the

WIPI telecommunications standard are addressed below.

Telecommunications

The United States has expressed ongoing concerns that Korea intends to mandate

telecommunications technology standards in Korea rather than allow market forces to

118 Ibid, p. 25.

119 USTR, 2004 National Trade Estimate Report on Foreign Trade Barriers, Apr. 1, 2004, p. 300.

120 Ibid, p. 301.

121 Ibid, p. 300.

122 Ibid, p. 301.
5-26

determine successful technologies.123 Three key areas have been the focus of

U.S.-Korea dialogue in this area. The first relates to the wireless broadband Internet

platform for interoperability (WIPI) for cellular phones. Although currently several

platforms are in operation in Korea, including one provided by an American

company, the United States is concerned that there is inappropriate Korean

Government involvement in the creation, standardization, and deployment of

WIPI.124 The Korean Government has delayed mandating WIPI in response to U.S.

concerns, and continues to consult with the United States and WTO bodies.125 The

other two areas of concern relate to reallocation of the 2.3 gigahertz spectrum and to

location-based services (LBS).126

One of the problems identified with the proposed WIPI standard was its use of the

intellectual property of a U.S. company without that company’s permission.127 An

agreement was reached between that company and the WIPI developers during

2003.128

Brazil

U.S.-Brazilian bilateral trade relations continue to be influenced by Brazil’s

membership in the Southern Common Market (Mercosur) customs union,129 and by

ongoing negotiations for the Free Trade Area of the Americas (FTAA).130 Brazil

ranked as the sixteenth largest export market for the United States in 2003, and was

the thirteenth largest U.S. supplier in the year. U.S. exports to Brazil totaled $9.9 billion

in 2003, while U.S. imports from Brazil totaled $17.7 billion. Leading U.S. exports to

Brazil in 2003 included aircraft, and aircraft parts and computer parts and

accessories. Leading U.S. imports from Brazil included aircraft, electronic articles,

petroleum, and footwear. U.S.-Brazilian trade data are shown in appendix tables

A-37 to A-39.

123 See, for example, U.S. Department of State telegram, “Failing to Connect on the Cutting Edge:

U.S.-Korean Experts Telecom Dialogue Makes Little Headway,” message reference No. 316239,

prepared by U.S. Department of State, Washington, D.C., Nov. 13, 2003; USTR, 2004 Trade Policy

Agenda and 2003 Annual Report of the President of the United States on the Trade Agreements Program,

March 1, 2004, pp. 150-51; and U.S. Department of State telegram, “U.S. Ambassador Discusses WIPI,

IPR, and Nortel with New Telecom Minister,” message reference No. 2107, prepared by U.S. Embassy,

Seoul, Apr. 30, 2003.

124 USTR, 2004 Trade Policy Agenda and 2003 Annual Report of the President of the United States

on the Trade Agreements Program, Mar. 1, 2004, p. 151.

125 USTR, 2004 National Trade Estimate Report on Foreign Trade Barriers, Apr. 1, 2004, p. 317.

126 USTR, 2004 Trade Policy Agenda and 2003 Annual Report of the President of the United States

on the Trade Agreements Program, Mar. 1, 2004, p. 151.

127 See, for example, U.S. Department of State telegram, “U.S.-Korea Trade Consultations:

Telecom,” message reference No. 55701, prepared by U.S. Department of State, Washington, D.C.,

Mar. 4, 2003.

128 U.S. Department of State telegram, “June 2003 U.S.-Korea Trade Consultations: Telecom,”

message reference No. 211677, prepared by U.S. Department of State, Washington, D.C., July 22,

2003.

129 The Mercosur customs union is a free trade area with common external tariffs. Members of the

Mercosur customs union are Argentina, Brazil, Paraguay, and Uruguay. Bolivia, Chile, and Peru

participate in the Mercosur free trade area, but not in the common external tariff scheme. Mercosur

became operative on Jan. 1, 1995.

130 The FTAA is discussed in more detail in chapter 4.
5-27

Brazil’s approval process for biotechnology imports has been a trade problem for

several years.131 Regulation of the biotechnology sector remains essentially frozen

because of a 1998 court case that remains pending in a Brazilian federal court. In the

absence of a definitive court ruling on this case, Brazilian President Lula made

progress in 2003 towards a new legal framework for production and marketing of

biotechnology soybean crops. Law 10,814, which was enacted on December 15,

2003, legalizes the planting and marketing of biotechnology soybean crops for the

2003/2004 harvest.132

Another long-standing bilateral trade problem involves the protection of intellectual

property rights (IPR) in Brazil. Brazil is on the U.S. Special 301 PriorityWatch List due to

continuing concerns about copyright and trademark infringement, inadequate IPR

enforcement, and the need to improve its processing of patent applications in a

manner that is consistent with its international obligations.133 To address some of these

concerns during 2003, Brazil doubled the minimum penalty for copyright violations,

launched a national public awareness campaign, and began IPR training at the

national police academy.134

131 The lack of a clear policy on biotechnology in Brazil reportedly has resulted in U.S. companies

losing several opportunities to sell biotechnology products to Brazil. Although the Brazilian Government

approved imports of Roundup Ready soybeans from the United States in 1998, that approval has been

challenged and the issue remains in the Brazilian legal system pending resolution. For further

information, see USITC, The Year in Trade, 2000, USITC Publication 3428, p. 4-49.

132 USTR, 2004 National Trade Estimate Report on Foreign Trade Barriers, “Brazil,” found at

http://www.ustr.gov/reports/nte/2004/brazil.pdf, retrieved Apr. 5, 2004.

133 Ibid. The “special 301” law is discussed in chapter 2.

134 Ibid.

APPENDIX

Statistical Tables

Table A-1

Antidumping cases active in 2003, by USITC investigation number

(Affirmative = A; Negative = N)

USITCinvestigationnumber Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

731-TA-986 Ferrovanadium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 11/26/01 A A A 731-TA-987 Ferrovanadium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa 11/26/01 A A A 731-TA-989 Ball bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 02/13/02 A A A 731-TA-990 Non-malleable cast iron pipe fittings . . . . . . . . . . . . . . . . . . . . China 02/21/02 A A A 731-TA-991 Silicon metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Russia 03/07/02 A A A 731-TA-1006 Urea ammonium nitrate solution . . . . . . . . . . . . . . . . . . . . . . . Belarus 04/19/02 A A A 731-TA-1008 Urea ammonium nitrate solution . . . . . . . . . . . . . . . . . . . . . . . Russia 04/19/02 A A A 731-TA-1009 Urea ammonium nitrate solution . . . . . . . . . . . . . . . . . . . . . . . Ukraine 04/19/02 A A A 731-TA-1010 Lawn and garden steel fence posts . . . . . . . . . . . . . . . . . . . . . China 05/01/02 A A A 731-TA-1012 Frozen fish fillets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vietnam 06/28/02 A A A 731-TA-1013 Saccharin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 07/11/02 A A A 731-TA-1014 Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 09/05/02 A A A 731-TA-1015 Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Germany 09/05/02 A A A 731-TA-1016 Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Japan 09/05/02 A A A 731-TA-1017 Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Korea 09/05/02 A A A 731-TA-1019A Durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 09/13/02 A A A 731-TA-1019B Hard red spring wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 09/13/02 A A A 731-TA-1020 Barium carbonate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 09/30/02 A A A 731-TA-1021 Malleable iron pipe fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . China 10/30/02 A A A 731-TA-1022 Refined brown aluminum oxide . . . . . . . . . . . . . . . . . . . . . . . . China 11/20/02 A A A 731-TA-1023 Ceramic station post insulators . . . . . . . . . . . . . . . . . . . . . . . . Japan 12/31/02 A A A 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-1029 Allura red coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . India 03/04/03 N (4) (4) 

731-TA-1030 Fluorescent whitening agents . . . . . . . . . . . . . . . . . . . . . . . . . . China 03/31/03 (5) (4) (4) 731-TA-1031 Fluorescent whitening agents . . . . . . . . . . . . . . . . . . . . . . . . . . Germany 03/31/03 (5) (4) (4) 731-TA-1032 Fluorescent whitening agents . . . . . . . . . . . . . . . . . . . . . . . . . . India 03/31/03 (5) (4) (4) 731-TA-1033 Hydraulic magnetic circuit breakers . . . . . . . . . . . . . . . . . . . . . South Africa 04/14/03 N (4) (4) 731-TA-1034 Color television receivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 05/02/03 A A (3) 

731-TA-1035 Color television receivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Malaysia 05/02/03 A N (3) 731-TA-1036 DAS chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 05/14/03 N (4) (4) 

731-TA-1037 DAS chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Germany 05/14/03 N (4) (4) 731-TA-1038 DAS chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . India 05/14/03 N (4) (4) 731-TA-1039 Thermal transfer ribbons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . France 05/30/03 A A (3) 

See footnotes at end of table.
Table A-1—Continued

Antidumping cases active in 2003, by USITC investigation number

(Affirmative = A; Negative = N)

USITCinvestigationnumber Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

731-TA-1040 Thermal transfer ribbons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Japan 05/30/03

A

A (

3) 

731-TA-1041 Thermal transfer ribbons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Korea 05/30/03 A N (3) 

731-TA-1042 Oleoresinous pigment dispersions . . . . . . . . . . . . . . . . . . . . . . . India 06/05/03 N (4) (4) 

731-TA-1043 Polyethylene retail carrier bags . . . . . . . . . . . . . . . . . . . . . . . . . China 06/20/03 A (3) (3) 

731-TA-1044 Polyethylene retail carrier bags . . . . . . . . . . . . . . . . . . . . . . . . . Malaysia 06/20/03 A (3) (3) 731-TA-1045 Polyethylene retail carrier bags . . . . . . . . . . . . . . . . . . . . . . . . . Thailand 06/20/03 A (3) (3) 731-TA-1046 Tetrahydrofurfuryl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 06/23/03 A (3) (3) 731-TA-1047 Ironing tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 06/30/03 A (3) (3) 731-TA-1048 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . . Australia 07/31/03 A (3) (3) 731-TA-1049 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . . China 07/31/03 (6) (4) (4) 

731-TA-1050 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . . Greece 07/31/03 A (3) (3) 

731-TA-1051 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . . Ireland 07/31/03 A (3) (3) 731-TA-1052 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . . Japan 07/31/03 A (3) (3) 731-TA-1053 Electrolytic manganese dioxide . . . . . . . . . . . . . . . . . . . . . . . . . South Africa 07/31/03 A (3) (3) 731-TA-1054 Light-walled rectangular pipe and tube . . . . . . . . . . . . . . . . . . . Mexico 09/09/03 A (3) (3) 731-TA-1055 Light-walled rectangular pipe and tube . . . . . . . . . . . . . . . . . . . Turkey 09/09/03 A (3) (3) 731-TA-1056 Aluminum plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa 10/16/03 A (3) (3) 731-TA-1057 Processed hazelnuts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Turkey 10/21/03 A (3) (3) 731-TA-1058 Wooden bedroom furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . China 10/31/03 (3) (3) (3) 731-TA-1059 Hand trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 11/13/03 A (3) (3) 731-TA-1060 Carbazole violet pigment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . China 11/21/03 (3) (3) (3) 731-TA-1061 Carbazole violet pigment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . India 11/21/03 (3) (3) (3) 731-TA-1062 Kosher chicken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 12/01/03 (3) (3) (3) 731-TA-1063 Frozen or canned warmwater shrimp and prawns . . . . . . . . . . Brazil 12/31/03 (3) (3) (3) 731-TA-1064 Frozen or canned warmwater shrimp and prawns . . . . . . . . . . China 12/31/03 (3) (3) (3) 731-TA-1065 Frozen or canned warmwater shrimp and prawns . . . . . . . . . . Ecuador 12/31/03 (3) (3) (3) 731-TA-1066 Frozen or canned warmwater shrimp and prawns . . . . . . . . . . India 12/31/03 (3) (3) (3) 731-TA-1067 Frozen or canned warmwater shrimp and prawns . . . . . . . . . . Thailand 12/31/03 (3) (3) (3) 731-TA-1068 Frozen or canned warmwater shrimp and prawns . . . . . . . . . . Vietnam 12/31/03 (3) (3) (3) 

1 International Trade Administration, 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 ta

USITC notification of Commerce is shown. 3 Pending as of December 31, 2003. 4 Not applicable. 5 The investigation was terminated or discontinued following withdrawal of the petition. 6 The investigation was terminated because imports were found to be negligible.

Source: Compiled from data maintained by the Commission.
A-5

Table A-2

Antidumping duty orders in effect as of December 31, 2003

Effective date of

Country and commodity 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 ...................................

Solid urea July 14, 1987 ...................................................

Belgium:

Stainless steel plate in coils May 21, 1999 ......................................

Carbon steel plate Aug. 19, 1993 ............................................

Sugar June 13, 1979 ......................................................

Brazil:

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 .................................................

Industrial nitrocellulose July 10, 1990 .........................................

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:

Malleable iron pipe fittings Dec. 12, 2003 ......................................

Refined brown aluminum oxide Nov. 19, 2003 ..................................

Barium carbonate Oct. 1, 2003 .............................................

Polyvinyl alcohol Oct. 1, 2003 ..............................................

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 ......................................................
A-6

Table A-2–Continued

Antidumping duty orders in effect as of December 31, 2003

Effective date of

Country and commodity original action

China–Continued

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 ...................................

Aspirin July 11, 2000 .....................................................

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 .....................................................

Coumarin Feb. 9, 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 ............................................

Industrial nitrocellulose July 10, 1990 .........................................

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 ....................................

Estonia:

Solid urea July 14, 1987 ...................................................

Finland:

Carbon steel plate Aug. 19, 1993 ............................................

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 ........................
A-7

Table A-2–Continued

Antidumping duty orders in effect as of December 31, 2003

Effective date of

Country and commodity original action

France–Continued

Ball bearings May 15, 1989 ................................................

Spherical plain bearings May 15, 1989 ........................................

Brass sheet and strip Mar. 6, 1987 ...........................................

Industrial nitrocellulose Aug. 10, 1983 .........................................

Sorbitol Apr. 9, 1982 .....................................................

Anhydrous sodium metasilicate Jan. 7, 1981 ...................................

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 ............................................

Industrial nitrocellulose July 10, 1990 .........................................

Ball bearings May 15, 1989 ................................................

Brass sheet and strip Mar. 6, 1987 ...........................................

Sugar June 13, 1979 ......................................................

Hungary:

Sulfanilic acid Nov. 8, 2002 ................................................

India:

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 ............................................

Extruded rubber thread May 21, 1999 ........................................

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 ................................................

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 ....................................
A-8

Table A-2–Continued

Antidumping duty orders in effect as of December 31, 2003

Effective date of

Country and commodity original action

Japan–Continued:

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 ................................

Industrial nitrocellulose July 10, 1990 .........................................

Mechanical transfer presses Feb. 16, 1990 .....................................

Drafting machines Dec. 29, 1989 ............................................

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 ..............................

Melamine Feb. 2, 1977 ...................................................

Polychloroprene rubber Dec. 6, 1973 ........................................

Kazakhstan:

Silicomanganese May 23, 2002 ..............................................

Hot-rolled carbon steel flat products Nov. 21, 2001 ...............................

Korea:

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 beams 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 ...............................

Polyethylene terephthalate (PET) film June 5, 1991 ...............................

Industrial nitrocellulose July 10, 1990 .........................................

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 ...................................

Lithuania:

Solid urea July 14, 1987 ...................................................

Malaysia:

Stainless steel butt-weld pipe fittings Feb. 23, 2001 ...............................

Extruded rubber thread Oct. 7, 1992 ........................................

Mexico:

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 ...................................
A-9

Table A-2–Continued

Antidumping duty orders in effect as of December 31, 2003

Effective date of

Country and commodity original action

Mexico–Continued:

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 ............................................

Solid urea July 14, 1987 ...................................................

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 ......................................

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 ........................
A-10

Table A-2–Continued

Antidumping duty orders in effect as of December 31, 2003

Effective date of

Country and commodity original action

Taiwan–Continued::

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 ............................................

Tajikistan:

Solid urea July 14, 1987 ...................................................

Thailand:

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 ......................................................

Aspirin Aug. 25, 1987 .....................................................

Welded carbon steel pipe May 15, 1986 .......................................

Turkmenistan:

Solid urea July 14, 1987 ...................................................

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 ............................................

Industrial nitrocellulose July 10, 1990 .........................................

Ball bearings May 15, 1989 ................................................

Uzbekistan:

Solid urea July 14, 1987 ...................................................

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 2003, by USITC investigation number

(Affirmative = A; Negative = N)

USITCinvestigationnumber Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

701-TA-430A Durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 09/13/02 A A A 701-TA-430B Hard red spring wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 09/13/02 A A A 701-TA-431 DRAMs and DRAM modules . . . . . . . . . . . . . . . . . . . . . . . . . . . Korea 11/01/02 A A A 701-TA-432 Prestressed concrete steel wire strand . . . . . . . . . . . . . . . . . . . . India 01/31/03 A A A 

701-TA-433 Allura red coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . India 03/04/03 N (4) (4) 

701-TA-434 Fluorescent whitening agents . . . . . . . . . . . . . . . . . . . . . . . . . . . India 03/31/03 (5) (4) (4) 701-TA-435 DAS chemistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . India 05/14/03 N (4) (4) 701-TA-436 Oleoresinous pigment dispersions . . . . . . . . . . . . . . . . . . . . . . . India 06/05/03 N (4) (4) 701-TA-437 Carbazole violet pigment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . India 11/21/03 (3) (3) (3) 

1 International Trade Administration, 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 ta

USITC notification of Commerce is shown.

3 Pending as of December 31, 2003. 4 Not applicable. 5 The investigation was discontinued following withdrawal of the petition.

Source: Compiled from data maintained by the Commission.
A-12

Table A-4

Countervailing duty orders in effect as of December 31, 2003

Effective date of

Country and commodity 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 .........................................

Carbon and certain alloy steel wire rod Oct. 22, 2002 ............................

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 ............................................

Stainless steel sheet and strip Aug. 6, 1999 ....................................

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 ............................................

Corrosion-resistant carbon steel flat products Aug. 17, 1993 ........................

Hungary:

Sulfanilic acid Nov. 8, 2002 ................................................

India:

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 .....................................

Stainless steel wire rod Sept. 15, 1998 .........................................

Pasta July 24, 1996 ......................................................

Oil country tubular goods Aug. 10, 1995 .......................................

Grain-oriented silicon electrical steel June 7, 1994 ..............................

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 ............................................
A-13

Table A-4–Continued

Countervailing duty orders in effect as of December 31, 2003

Effective date of

Country and commodity original action

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-14

Table A-5

Reviews of existing antidumping duty orders and suspension agreements

completed in 2003, by date of completion

USITC

investigation

number Product

Country of

origin

Completion

date1 Action

731-TA-745 Steel concrete reinforcing bars . . . . . . . . . . . Turkey 02/24/03 Continued

731-TA-752 Crawfish tail meat . . . . . . . . . . . . . . . . . . . . . China 07/28/03 Continued

731-TA-753 Cut-to-length carbon steel plate . . . . . . . . . . . China 08/29/03 Continued

731-TA-754 Cut-to-length carbon steel plate . . . . . . . . . . . Russia 08/29/03 Continued

731-TA-755 Cut-to-length carbon steel plate . . . . . . . . . . . South Africa 08/29/03 Revoked

731-TA-756 Cut-to-length carbon steel plate . . . . . . . . . . . Ukraine 08/29/03 Continued

1 The completion date shown is the date of the USITC notification of Commerce.

Source: Compiled from data maintained by the Commission.
A-15

Table A-6

Section 337 investigations and related proceedings completed by the

U.S. International Trade Commission during 2003 and those pending on

Dec. 31, 2003

Status of

Investigation Article Country1

Commission

determination

Completed:

337-TA-406 Certain Lens-Fitted Film Packages Hong Kong Issued four cease and

desist orders in an

ancillary (related)

enforcement/advisory

opinion proceeding.

337-TA-455 Certain Network Interface Cards

and Access Points for Use

in Direct Sequence Spread

Spectrum Wireless Local Area

Networks and Products

Containing Same

Japan, Taiwan,

Singapore

Terminated based on a

settlement agreement.

337-TA-460 Certain Sortation Systems, Parts

Thereof, and Products Containing

Same

Netherlands Issued limited exclusion

order.

337-TA-462 Certain Plastic Molding Machines

With Control Systems Having

Programmable Operator Interface

Incorporating General Purpose

Computers, and Components

Thereof

Germany, Italy, France Terminated based on a

settlement agreement.

337-TA-468 Certain Microlithographic Machines

and Components Thereof

Netherlands Terminated based on a

finding of no violation.

337-TA-471 Certain Data Storage Systems and

Components Thereof

Japan Terminated based on a

settlement agreement.

337-TA-476 Certain Radios and Components

Thereof

China Terminated based on

withdrawal of the

complaint.

337-TA-477 Certain Ammonium

Octamolybdate Isomers

China Terminated based on a

finding of no violation.

337-TA-478 Certain Ground Fault Circuit

Interrupters and Products

Containing Same

China, Hong Kong Terminated based on

withdrawal of the

complaint.

337-TA-479 Certain Coamoxiclav Products,

Potassium Clavulanate Products,

and Other Products Derived from

Clavulanic Acid

Austria, Italy,

Switzerland

Terminated based on a

settlement agreement.

337-TA-480 Certain Panel Fasteners, Products

Containing Same, And

Components Thereof

Hong Kong Terminated based on a

consent order.

337-TA-482 Certain Compact Disc and

DVD Holders

Denmark, Hong Kong,

Taiwan

Issued limited exclusion

order.

337-TA-483 Certain Tool Handles, Tool Holders,

Tool Sets, and Components

Thereof

Taiwan Terminated based on a

finding of no violation.

337-TA-484 Certain Machine Vision Systems, Parts

and Components Thereof and

Products Containing Same

Japan Terminated based on a

settlement agreement.

337-TA-485 Certain Truck Bed Ramps and

Components Thereof

Canada Terminated based on a

finding of no violation.

337-TA-486 Certain Agricultural Tractors, Lawn

Tractors, Riding Lawnmowers, and

Components Thereof

China Issued a limit exclusion

order.

337-TA-488 Certain Screen Printing Machines,

Vision Alignment Devices Used

Therein, and Component Parts

Thereof

Germany Terminated based on a

settlement agreement.

See footnote at end of table.
A-16

Table A-6—Continued

Section 337 investigations and related proceedings completed by the

U.S. International Trade Commission during 2003 and those pending on

Dec. 31, 2003

Status of

Investigation Article Country1

Commission

determination

337-TA-495 Certain Breath Test Systems for the

Detection of Gastrointestinal

Disorders and Components Thereof

Israel Terminated based on a

consent order.

Pending:

337-TA-406 Certain Lens-Fitted Film Packages Hong Kong Three related (ancillary)

proceedings pending

before the Commission:

(1) advisory opinion

proceeding; (2) enforcement proceeding; and

(3) bond forfeiture

proceeding.

337-TA-469 Certain Bearings and

Packaging Thereof

Mexico, Canada Pending before the

Commission.

337-TA-474 Certain Recordable Compact Discs

and Rewritable Compact

Discs

Hong Kong, Taiwan Pending before the

Commission.

337-TA-481 Certain Display Controllers with

Upscaling Functionality and

Products

Taiwan Pending before the

Commission.

337-TA-487 Certain Agricultural Vehicles and

Components Thereof

China, Netherlands,

France, Germany, and

Canada

Pending before the ALJ.

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

Pending before the

Commission.

337-TA-490 Certain Power Amplifier Chips,

Broadband Tuner Chips,

Transceiver Chips, And Products

Containing Same

Taiwan, Canada, China Pending before the ALJ.

337-TA-491 Certain Display Controllers and

Products Containing Same

Taiwan Pending before the ALJ.

337-TA-492 Certain Plastic Grocery and

Retail Bags

Thailand, China,

Singapore, Hong Kong

Pending before the ALJ.

337-TA-493 Certain Zero-Mercury-Added Alkaline

Batteries, Parts Thereof, and

Products Containing Same

China, Hong Kong,

Indonesia, Japan,

Singapore

Pending before the ALJ.

337-TA-494 Certain Automotive Measuring

Devices, Products Containing

Same, And Bezels for Such Devices

Taiwan Pending before the ALJ.

337-TA-496 Certain Home Vacuum

Packaging Machines

Korea Pending before the ALJ.

337-TA-497 Certain Universal Transmitters for

Garage Door Openers

Hong Kong, Canada Pending before the ALJ.

337-TA-498 Certain Insect Traps China Pending before the ALJ.

337-TA-499 Certain Audio Digital-to-Analog

Converters and Products

Containing Same

United Kingdom Pending before the ALJ.

337-TA-500 Certain Purple Protective Gloves Malaysia, China Pending before the ALJ.

337-TA-501 Certain Encapsulated Integrated

Circuit Devices and Products

Containing Same

Malaysia Pending before the ALJ.

1 This column lists the countries of the foreign respondents named in the investigation.

Source: U.S. International Trade Commission.
A-17

Table A-7

Outstanding Section 337 exclusion orders as of Dec. 31, 2003

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

Therefor

No foreign respondents Nonpatent

337-TA-254 Certain Small Aluminum Flashlights

and Components Thereof

Hong Kong, Taiwan June 6, 20043

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 Jan. 13, 2004

June 19, 20053

337-TA-314 Certain Battery-Powered Ride-On

Toy Vehicles and Components

Thereof

Taiwan Jan. 27, 2004

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-320 Certain Rotary Printing Apparatus

Using Heated Ink Composition,

Components Thereof, and Systems

Containing Said Apparatus and

Components

Spain, France Apr. 30, 20043

337-TA-321 Certain Soft Drinks and Their

Containers

Colombia Nonpatent

See footnotes at end of table.
A-18

Table A-7—Continued

Outstanding Section 337 exclusion orders as of Dec. 31, 2003

Investigation

No. Article Country1 Date patentexpires2

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

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

See footnotes at end of table.
A-19

Table A-7—Continued

Outstanding Section 337 exclusion orders as of Dec. 31, 2003

Investigation

No. Article Country1 Date patentexpires2

337-TA-449 Certain Abrasive Products Made

Using a Process for Making

Powder Preforms and Products

Containing Same

Taiwan Apr. 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-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

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, 2003

(Thousand dollars)

HTSRank

HTSNo. Description Total U.S. Imports for consumption 

1 27090020 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . . . . 43,076,312 2 71131950 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps . . . . . 4,431,987 3 29051120 Methanol (methyl alcohol), n.e.s.o.i. .................................................... 858,831 4 85443000 Ignition wiring sets, other wiring sets of a kind used in vehicles, aircraft or ships . . . . . . . . . . . . . . . . . . . 5,271,627 5 76061230 Aluminum alloy plates, sheets, and strip, of a thickness exceeding 0.2 mm, rectangular (including square), not clad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,016,867 6 71131929 Gold necklaces and neck chains, other than rope or mixed link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 832,552 7 85281228 Non-high definition color television reception apparatus, nonprojection, video display diagonal over

35.56 cm, incorporating a VCR or player . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

506,149 

8 87087045 Road wheels for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,417,769 9 27090010 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. . . . . . . . . . . . . 25,977,009 

10 39076000 Polyethylene terephthalate in primary forms .............................................. 535,913 11 87083950 Brakes and servo-brakes and parts thereof, n.e.s.o.i., excluding mounted brake linings, for motor

vehicles not agricultural tractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,436,293 

12 68029300 Monumental or building stone & arts. thereof, of granite, further worked than simply cut/sawn, nesoi . . 649,562 13 72024100 Ferrochromium containing more than 3 percent of carbon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,040 14 41071150 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

251,029 

15 44189045 Builders’ joinery and carpentry of wood, including cellular wood panels, n.e.s.o.i. . . . . . . . . . . . . . . . . . 901,586 

16 27101905 Distillate and residual fuel oil (including blends) derived from petroleum or oils from bituminous

minerals, testing under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10,885,449 

17 44121940 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

265,447 

18 87089980 Parts and accessories n.e.s.o.i., of motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,044,205 19 40111010 New pneumatic radial tires, of rubber, of a kind used on motor cars, including station wagons

and racing cars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,422,989 

20 17011110 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426,060 

Top 20 items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,369,675 1

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,137,742,922 1Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,245,112,597 3

Note.—Figures do not include Virgin Island imports. The abbreviation ”n.e.s.o.i.” stands for ”not elsewhere specified or included.”Source: Compiled from official statistics for the U.S. Department of commerce.
Table A-9

U.S. imports for consumption and imports eligible for GSP treatment, by import categories under the Harmonized 2003

(Million dollars)

HTSsector Rank Description

Total

imports

SECTION I 1 Live animals; animal products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,058 SECTION II 2 Vegetable products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,570 SECTION III 3 Animal and vegtable fats, oils, and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,519 SECTION IV 4 Prepared foodstuffs; beverages, spirits; tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,235 SECTION V 5 Mineral products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,815 SECTION VI 6 Chemical products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,515 SECTION VII 7 Plastics and rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,059 SECTION VIII 8 Raw hides and skins, leather, furskins; saddlery; handbags . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,493 SECTION IX 9 Wood; charcoal; cork; straw and other plaiting materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,171 SECTION X 10 Wood pulp; paper and paperboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,586 SECTION XI 11 Textiles and textile articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,395 SECTION XII 12 Footwear, headgear, umbrellas; artificial flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,461 SECTION XIII 13 Stone, plaster, cement, asbestos, ceramic and glass articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,907 SECTION XIV 14 Pearls, precious or semi-precious stones; imitation jewellery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,081 SECTION XV 15 Base metals and articles of base metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,956 SECTION XVI 16 Machinery and appliances; electrical equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325,473 SECTION XVII 17 Vehicles, aircraft, vessels, transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196,288 SECTION XVIII 18 Optical, photographic, medical, and musical instruments; clocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,187 SECTION XIX 19 Arms and ammunition; parts and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,090 SECTION XX 20 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,596 SECTION XXI 21 Works of art, collectors’ pieces and antiques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,376 SECTION XXII 22 Special classification provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,280 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,245,113 

Note.—Figures do not include Virgin Island importsSource: Compiled from official statistics for the U.S. Department of Commerce.
Table A-10

U.S. imports for consumption of leading imports under AGOA, 2001-03

(1,000 dollars)

HTS No. Description 2001 202709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,060,370 9,047,62710.19.05 Distillate and residual fuel oil (including blends) derived from petroleum or oils from bituminous minerals, testing

under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1269,983 448,4

8703.23.00 Passenger motor vehicles with spark-ignition internal combustion reciprocating piston engine, cylinder capacity

1,500-3000 cc ..................................................................................... 4 338,9

8703.24.00 Other passenger motor vehicles, with spark-ignition internal combustion reciprocating piston engine, cylinder

capacity over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232,277 132,7

6204.62.40 Women’s or girls’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . 98,517 153,92709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,042 234,86110.20.20 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . 61,964 159,76203.42.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, not containing 15 percent or more down . . . 82,361 161,42710.11.25 Naphthas, not motor fuel/blending stock, from petroleum oils/oils from bituminous minerals, minimum 70 percent

by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257,723 52,5

7606.12.30 Aluminum alloy plates, sheets, and strip, of a thickness exceeding 0.2 mm, rectangular (including square), not clad . . . . . . . . . 55,478 70,57202.41.00 Ferrochromium containing more than 3 percent of carbon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,853 36,56110.30.30 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of man-made fibers, n.e.s.o.i. . . . . . . . . 8,216 39,57202.30.00 Ferrosilicon manganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,388 50,76109.10.00 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,920 30,36205.20.20 Men’s or boys’ shirts, not knitted or crocheted, of cotton, not certified hand-loomed and folklore product . . . . . . . . . . . . . . . . . 13,823 29,66104.62.20 Women’s or girls’ trousers, breeches, and shorts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,453 25,07202.11.50 Ferromanganese containing by weight more than 4 percent carbon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,058 43,38708.70.45 Road wheels for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,967 17,82804.69.10 Silicon, containing by weight less than 99.99 percent but not less than 99 percent of silicon . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,692 22,71701.11.10 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,561 42,27113.19.29 Gold necklaces and neck chains, other than rope or mixed link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,544 15,36103.43.15 Men’s or boys’ trousers, breeches and shorts, knitted or crocheted, of synthetic fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . 3,672 11,90805.10.00 Oranges, fresh or dried . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,490 15,31805.00.00 Cocoa powder, not containing added sugar or other sweetening matter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,507 11,36105.10.00 Men’s or boys’ shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,058 24,1

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,198,920 11,217,0

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 609,976 745,5

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,808,896 11,962,5

1 In 2001, imports under current HTS 2710.19.05 were reported under 2710.00.05. 2 In 2001, imports under current HTS 2710.11.25 were reported under 2710.00.25.

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.

U.S. imports for consumption under AGOA provisions, by source, 2003
Table A-11

U.S. imports for consumption under AGOA provisions; by source,, 2001-03

(1,000 dollars)

Rank Source 2001 2002 1 Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,688,461 5,409,660 2 Angola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,511,022 2,826,122 3 Republic of South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 923,243 1,342,594 4 Gabon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938,760 1,145,627 5 Lesotho . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,592 318,029 6 Republic of the Congo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,235 106,633 7 Madagascar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,105 79,728 8 Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,873 129,210 9 Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,174 115,804 10 Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,975 114,292 11 Swaziland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,770 81,252 12 Democratic Rep of the Congo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,527 144,885 13 Cote d’Ivoire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,321 49,733 14 Malawi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,362 46,904 15 Namibia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 1,717 16 Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,889 34,830 17 Chad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 

18 Mozambique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,278 5,916 19 Botswana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,221 4,578 20 Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 822 2,320 21 Cape Verde . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 51 22 Tanzania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899 1,293 23 Uganda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 32 24 Senegal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 567 499 25 Zambia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 775 83 26 Mali . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 342 27 Guinea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 68 28 Sierra Leone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387 217 29 Niger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 22 30 Djibouti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 23 31 The Gambia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 24 32 Rwanda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 10 33 Mauritania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 35 34 Seychelles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,230 0 35 Benin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 0 36 Guinea-Bissau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 37 Sao Tome and Principe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 38 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,808,896 11,962,532 

1 Not applicable.

Note.—Because of rounding, figures may not add to totals shown.Source: Compiled from official statistics of the U.S. Department of Commerce.
A-24

Table A-12

U.S. imports for consumption under ATPA provisions, by source, 2001-03

(1,000 dollars)

Rank Source 2001 2002 2003

Percent Change

2002-03

1 Colombia . . . . . . . 717,966 404,148 2,908,692 619.7

2 Ecuador . . . . . . . . 216,300 177,734 1,553,604 774.1

3 Peru . . . . . . . . . . . 686,341 381,814 1,279,283 235.1

4 Bolivia . . . . . . . . . 53,999 37,119 94,453 154.5

Total . . . . . . . . . . 1,674,607 1,000,816 5,836,032 483.1

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, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . 0 66,571 2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. . . . . . . . . . 0 119,804 7403.11.00 Cathodes and sections of cathodes, of refined copper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429,379 248,663 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 7,263 

0603.10.60 Roses, fresh cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,283 69,765 6110.20.20 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of cotton,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 

2710.11.25 Naphthas, not motor fuel/blending stock, from petroleum oils/oils from bituminous minerals,

minimum 70 percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 9,722 

0603.10.80 Cut flowers and flower buds suitable for bouquets, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,244 43,302 6105.10.00 Men’s or boys’ shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 

0603.10.70 Chrysanthemums, standard carnations, anthuriums and orchids . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,342 46,539 6109.10.00 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of cotton . . . . . . . . . . . . . . . 0 0 0709.20.90 Asparagus, fresh or chilled, not reduced in size, not entered Sept. 15-Nov. 15 . . . . . . . . . . . . . . . . . 28,261 31,589 7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps . . 78,685 36,704 2402.20.80 Cigarettes containing tobacco but not clove, paper-wrapped . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,781 20,524 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 0 

7113.19.29 Gold necklaces and neck chains, other than rope or mixed link . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,449 21,828 6204.62.40 Women’s or girls’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, n.e.s.o.i. . . . . . 0 0 6106.10.00 Women’s or girls’ blouses and shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 1701.11.10 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,818 3,637 1604.14.30 Tunas and skipjack, not in oil, in airtight containers, over 7 kg, or over quota . . . . . . . . . . . . . . . . . 0 0 0804.50.40 Guavas, mangoes, and mangosteens, fresh, if entered during the period from September 1, in any

year, to the following May 31, inclusive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,742 7,601 

0603.10.30 Miniature (spray) carnations, fresh cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,584 13,239 0709.20.10 Asparagus, fresh or chilled, not reduced in size, entered Sept. 15-Nov. 15 . . . . . . . . . . . . . . . . . . . . 15,239 18,729 6110.30.30 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of

man-made fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 

4421.90.97 Articles of wood, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 6,571 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,016,807 772,051 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 657,800 228,765 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,674,607 1,000,816 

1 In 2001, imports under current HTS 2710.19.05 were reported under 2710.00.05. 2 Not applicable. 3 In 2001, imports under current HTS 2710.11.25 were reported under 2710.00.25. 4 In 2001, imports under current HTS 4421.90.97were reported under 4418.90.40 part and 4421.90.98.

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.
Table A-14

U.S. imports for consumption of leading imports under CBERA, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 6109.10.00 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of cotton . . . . . . . . . . . . . . . 931,920 1,093,055 6203.42.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, not containing

15 percent or more down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 759,714 863,751 

2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . 263,518 609,776 

6110.20.20 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of

cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376,228 485,435 

6107.11.00 Men’s or boys’ underpants and briefs, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . 305,308 438,609 6203.43.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of synthetic fibers,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249,310 289,466 

2905.11.20 Methanol (methyl alcohol), n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281,988 219,876 

6212.10.90 Brassieres, not containing lace, net, or embroidery, not 70 percent or more silk, whether or

not knitted or crocheted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221,991 385,518 

6204.62.40 Women’s or girls’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, n.e.s.o.i. . . . . . 283,586 290,408 2402.10.80 Cigars, cheroots and cigarillos, each valued 23 cents or over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,637 228,526 6108.21.00 Women’s or girls’ briefs and panties, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . 195,541 261,127 0804.30.40 Pineapples, fresh or dried, not reduced in size, in crates or other packages . . . . . . . . . . . . . . . . . . . 133,697 168,287 7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps . . 185,193 227,516 6110.30.30 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of

man-made fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,888 138,743 

2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. . . . . . . . . . 75,180 130,900 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173,924 215,416 

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 4 

6109.90.10 T-shirts, singlets, tank tops, and similar garments, nitted or crocheted, of man-made fibers . . . . . . . 209,080 173,750 6105.10.00 Men’s or boys’ shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149,340 132,954 1701.11.10 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,133 148,769 0807.19.20 Cantaloupes, fresh, not entered Aug. 1-Sept. 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,444 122,247 6205.30.20 Men’s or boys’ shirts, not knitted or crocheted, of manmade fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 63,226 95,140 6104.62.20 Women’s or girls’ trousers, breeches, and shorts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . 75,312 91,467 8536.20.00 Automatic circuit breakers, for a voltage not exceeding 1,000 volts . . . . . . . . . . . . . . . . . . . . . . . . . 70,315 77,141 6205.20.20 Men’s or boys’ shirts, not knitted or crocheted, of cotton, not certified hand-loomed and folklore

product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,221 96,838 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,514,725 6,984,717 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,793,445 3,018,543 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,308,171 10,003,260 

1 In 2001, imports under current HTS 2710.19.05 were reported under 2710.00.05.

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.
Table A-15

U.S. imports for consumption under CBERA provisions, by source, 1999-2003

(1,000 dollars)

Rank Source 1999 2000 2001 2002 1 Dominican Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 820,270 852,294 2,363,324 2,679,342 2 Honduras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,152 252,149 1,670,844 1,989,871 3 Trinidad and Tobago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217,857 329,471 753,448 1,173,434 4 El Salvador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,051 71,565 1,008,274 1,144,089 5 Guatemala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285,349 264,630 744,157 1,044,628 6 Costa Rica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 683,017 617,142 1,011,454 1,154,516 7 Nicaragua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,556 57,555 147,887 212,845 8 Haiti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,914 25,160 158,698 176,509 9 Jamaica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,593 89,459 195,207 194,059 10 Bahamas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,018 74,451 75,811 70,881 11 Belize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,057 32,360 48,519 42,834 12 Panama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,962 42,639 42,254 41,551 13 St Kitts-Nevis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,617 27,613 29,490 27,305 14 Guyana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,706 17,143 23,769 21,912 15 Barbados . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,632 10,441 12,002 12,357 16 St. Lucia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,249 7,471 7,225 7,980 17 Netherlands Antilles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,612 3,624 6,043 3,089 18 St Vincent and Grenadines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,195 1,947 2,223 5,514 19 Dominica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,497 196 80 374 20 British Virgin Islands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 31 21 66 21 Aruba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 128 22 23 22 Antigua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 4 152 43 23 Grenada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,486 16,702 7,265 37 24 Montserrat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 0 0 0 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,637,204 2,794,174 8,308,171 10,003,260 

1 Not applicable.

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-16

U.S. merchandise trade with the European Union, by SITC numbers (revision 3), 2001-03

(1,000 dollars)

SITC Section No. Description 2001 2002 0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,615,305 3,547,382 3,81 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,494,420 1,266,472 1,32 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,760,116 5,509,760 5,43 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 1,782,647 1,331,411 1,14 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,021 135,140 15 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,905,809 23,493,206 27,76 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 9,183,924 7,617,704 7,87 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,965,545 65,856,659 65,38 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,211,409 17,997,442 18,89 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 6,262,197 5,807,510 6,4

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147,327,393 132,562,685 138,1

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,421,996 3,643,423 4,01 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,174,929 5,779,257 6,52 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,767,712 1,952,295 2,03 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 7,040,933 8,021,041 10,24 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 402,416 490,108 55 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,210,891 47,206,951 55,16 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 23,648,557 22,474,821 23,57 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,720,588 92,766,919 97,28 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,874,363 28,873,050 30,39 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 12,648,600 12,523,920 12,4

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,910,985 223,731,786 242,2

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-17

Leading exports to the European Union, by Schedule B numbers, 2001-03

(1,000 dollars)

Schedule BNo. Description 2001 2002 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . 7,122,280 6,080,533 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,923,745 4,556,992 4

8473.30 Parts and accessories for automated data processing machines and nits . . . . . . . . . . . . . . . . . . . . 6,134,356 4,582,910 43004.90 Certain medicaments put up in measured doses or in forms or packings for retail sale, n.e.s.o.i. . . 3,803,472 3,362,003 49880.00 Estimate of non-Canadian low value export shipments; compiled by low value and not identified

by kind of shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,785,774 3,354,157 3

8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,432,020 3,472,683 8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,552,123 2,061,125 2

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,242,757 1,135,703 2

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

887,422 1,747,739 2

3002.10 Antisera and other blood fractions, and modified immunological products ................... 930,328 1,317,441 9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. . . . . . 1,693,816 1,624,885 18411.12 Turbojets of a thrust exceeding 25 kN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,223,170 1,799,174 13822.00 Composite diagnostic or laboratory reagents, except pharmaceuticals . . . . . . . . . . . . . . . . . . . . . . 1,442,258 1,448,520 18471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,326,987 1,443,327 18708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,895,431 1,731,568 

9021.90 Appliances n.e.s.o.i., worn, carried, or implanted in the body, to compensate for a defect or

disability; parts and accessories thereof ........................................... 406,636 796,069 

7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder . . . . . . . . 680,604 702,392 8703.33 Passenger motor vehicles with compression-ignition internal combustion piston engine (diesel),

cylinder capacity over 2,500 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 668,529 880,701 

2933.39 Heterocyclic compounds containing an unfused pyridine ring, whether or not hydrogenated,

in the structure, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204,111 248,821 

1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,172,436 1,155,579 8411.99 Gas turbine parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 971,726 1,125,009 19018.39 Medical etc. needles n.e.s.o.i., catheters, cannulae and the like; parts and accessories thereof . . . . 887,870 853,552 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,531,298 1,233,340 9801.10 Value of repairs or alterations of previously imported articles, repaired or altered prior to

exportation from United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 709,300 859,915 

9018.19 Electro-diagnostic apparatus n.e.s.o.i., and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 905,029 851,876 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,533,477 48,426,014 52

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,793,916 84,136,671 85

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147,327,393 132,562,685 138

1 In 2001, exports under current Schedule B 8542.21 were reported under 8542.13, 8542.14, and 8542.19.

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.
Table A-18

Leading imports from the European Union, by HTS numbers, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity

over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,647,310 14,844,121 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,865,292 11,417,058 

3004.90 Certain medicaments put up in measured doses or in forms or packings for retail sale, n.e.s.o.i. . . . . . . . . . . . . . . 7,004,170 11,238,935 

9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . . 8,306,068 8,304,532 

2934.99 Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds, n.e.s.o.i. ....... (1) 5,880,598 

2933.99 Heterocyclic compounds with nitrogen hetero-atom(s) only, n.e.s.o.i. .................................... (2) 4,158,784 9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,436,620 3,417,580 2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum

70 percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 2,936,875 

8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,036,294 4,545,500 8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,932,431 3,269,714 2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent

by weight of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 2,109,453 

7102.39 Nonindustrial diamonds, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,247,334 2,432,145 9701.10 Paintings, drawings and pastels, executed entirely by hand, framed or not framed . . . . . . . . . . . . . . . . . . . . . . . . 3,200,807 2,927,325 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,118,588 1,924,027 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842,169 1,867,032 

3004.39 Medicaments, in measured doses, containing hormones or derivatives/steroids used primarily as

hormones, but not containing antibiotics, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 880,808 1,420,862 

2204.21 Wine n.e.s.o.i. of fresh grapes or fortified wine, in containers not over 2 liters . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,287,393 1,487,537 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,142,922 1,759,978 

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,497,281 1,599,567 

8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 866,138 1,620,962 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,185,402 1,243,982 8411.12 Turbojets of a thrust exceeding 25 kN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,568,610 2,616,552 2931.00 Organo-inorganic compounds, n.e.s.o.i. ......................................................... 980,282 1,373,369 7113.19 Articles of jewelry and parts thereof, of precious metal (excluding silver) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,433,095 1,534,493 

See footnotes at end of table.
Table A-18—Continued

Leading imports from the European Union, by HTS numbers, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 2203.00 Beer made from malt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,139,004 1,254,003 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,618,018 97,184,983 1

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,292,967 126,546,803 1

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,910,985 223,731,786 2

1 In 2001, imports under curent HTS 2934.99 were reported under 2934.90 part. 2 In 2001, imports under curent HTS 2933.99 were reported under 2934.90 part. 3 In 2001, imports under curent HTS 2710.11 were reported under 2710.00 part. 4 In 2001, imports under curent HTS 2710.19 were reported under 2710.00 part. 5 In 2001, imports under curent HTS 8542.21 were reported under 8542.13, 8542.14, and 8542.19.

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.
Table A-19

U.S. merchandise trade with Canada, by SITC numbers (revision 3), 2001-03

(1,000 dollars)

SITC Section No. Description 2001 2002 0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,264,270 7,693,335 8,11 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392,675 388,755 42 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,178,073 4,115,162 4,33 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 3,572,996 2,594,731 3,94 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 174,292 202,761 25 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,221,120 15,559,747 16,96 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 20,606,818 20,664,276 20,77 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,807,700 73,008,416 74,28 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,973,620 14,317,223 15,09 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 4,429,180 3,998,696 4,4

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,620,745 142,543,103 148,7

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,398,710 11,010,921 10,91 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 923,085 896,038 82 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,785,521 10,123,750 9,73 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 34,213,010 29,561,267 41,24 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 292,601 310,322 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,008,851 12,080,352 13,46 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 32,126,038 32,093,387 33,27 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,767,740 83,390,303 84,18 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,235,790 14,295,286 14,59 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 16,084,849 16,756,276 15,3

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,836,196 210,517,904 224,0

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-20

Leading exports to Canada, by Schedule B numbers, 2001-03

(1,000 dollars)

Schedule BNo. Description 2001 2002 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 4,743,461 5,286,445 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,197,396 4,727,589 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,064,844 5,121,944 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,733,448 4,088,608 8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . 3,854,986 3,732,343 9880.00 Estimate of non-Canadian low value export shipments; compiled by low value and not identified

by kind of shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,646,973 3,207,729 

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine,

gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,138,932 2,798,039 

8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,069,988 2,233,966 3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . 1,262,758 1,359,727 

8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,273,461 1,317,340 8704.21 Trucks, n.e.s.o.i., diesel engine, gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . 731,362 832,895 2711.21 Natural gas, gaseous state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179,096 369,068 

9032.89 Automatic regulating or controlling instruments and apparatus, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . 1,035,185 1,001,802 

8708.39 Brakes and servo-brakes and parts for motor .......................................... 953,776 1,073,616 

8701.20 Road tractors for semi-trailers ...................................................... 535,019 842,461 8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . 1,070,658 1,034,000 7606.12 Rectangular plates, sheets and strip, over 0.2 mm thick, of aluminum alloy . . . . . . . . . . . . . . . . . . . . 861,440 900,756 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 1,489,927 1,017,821 

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum

70 percent by weight of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 656,325 

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,177,161 794,074 

4901.99 Printed books, brochures, leaflets and similar printed matter, other than in single sheets . . . . . . . . . 716,789 736,979 4902.90 Newspapers, etc. appearing less than 4 times per week . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 630,838 597,576 2716.00 Electrical energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,258,244 303,527 7326.90 Articles of iron or steel n.e.s.o.i. ..................................................... 773,383 834,540 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,009,862 778,328 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,408,987 45,647,498 4

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,211,757 96,895,605 1

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,620,745 142,543,103 14

1 In 2001, exports under current Schedule B 2710.19 were reported under 2710.00 part. 2 In 2001, exports under current Schedule B 8542.21 were reported under 8542.13, 8542.14, and 8542.19.

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.
Table A-21

Leading imports from Canada, by HTS numbers, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,778,748 26,230,092 

2711.21 Natural gas, gaseous state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,355,056 11,428,452 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,121,407 11,195,903 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals

exported or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,046,701 10,599,634 

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine,

gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,929,566 8,134,225 

4407.10 Coniferous wood sawn or chipped lengthwise, sliced or peeled, of thickness exceeding 6mm . . . . . . 5,667,682 5,189,480 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,518,332 4,765,859 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,376,267 3,827,607 

9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,788,331 3,575,721 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 2,343,075 2,810,250 

8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . 2,653,979 2,836,859 4801.00 Newsprint, in rolls or sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,493,941 2,955,524 2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum

70 percent by weight of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 1,959,502 

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum

70 percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) 1,996,506 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . 2,119,538 2,168,140 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . 1,574,714 1,086,636 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 1,653,534 

7601.20 Unwrought aluminum alloys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,233,755 1,488,374 7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder . . . . . . . . . 1,110,225 1,474,471 4703.21 Chemical woodpulp, soda or sulfate, other than dissolving grades, semibleached or bleached,

coniferous wood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,512,996 1,238,946 

2716.00 Electrical energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,680,884 1,160,445 2711.12 Propane, liquefied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,142,922 847,754 3004.90 Certain medicaments put up in measured doses or in forms or packings for retail sale, n.e.s.o.i. . . . 687,337 830,116 7601.10 Aluminum, not alloyed, unwrought . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,384,628 877,665 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,298,321 1,110,326 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,818,402 111,442,024 1

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,017,794 99,075,879 10

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,836,196 210,517,904 2

1 In 2001, imports under current HTS 2701.19 were reported under 2710.00 part. 2 In 2001, imports under current HTS 2701.11 were reported under 2710.00 part. 3 In 2001, imports under current HTS 4802.61 were reported under 4802.60 part.

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.
Table A-22

U.S. merchandise trade with Mexico, by SITC numbers (revision 3), 2001-03

(1,000 dollars)

SITC Section No. Description 2001 2002 0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,202,888 4,864,800 5,31 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,671 100,001 12 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,934,019 3,092,197 3,33 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 3,252,681 3,237,193 2,84 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,375 451,139 35 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,238,971 8,443,193 9,56 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 13,058,263 12,396,590 12,27 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,705,290 38,991,422 35,88 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,514,104 10,614,073 9,79 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 4,259,171 3,885,475 3,6

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,537,434 86,076,082 83,1

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,520,323 4,517,402 5,21 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,396,705 1,623,865 1,72 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815,597 789,472 73 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 9,082,451 11,552,141 14,74 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,988 21,443 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,030,213 2,187,978 2,26 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 8,794,047 9,439,156 9,47 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,182,629 76,905,602 75,68 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,925,098 21,283,606 21,29 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 5,738,881 5,800,511 5,9

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,508,931 134,121,175 137,1

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-23

Leading exports to Mexico, by Schedule B numbers, 2001-03

(1,000 dollars)

Schedule B

No. Description 2001 2002 

9880.00 Estimate of non-Canadian low value export shipments; compiled by low value and not identified

by kind of shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,353,352 3,146,328 

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 2,639,994 2,591,787 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,468,479 1,427,753 2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum

70 percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1) 1,608,744 

3926.90 Articles of plastics and articles of other materials of headings 3901 to 3914, n.e.s.o.i. . . . . . . . . . . . 1,734,435 1,500,455 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,414,625 1,483,062 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 989,025 1,549,774 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,482,204 1,370,887 

8408.20 Compression-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538,103 792,127 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769,632 836,385 8538.90 Parts for electrical apparatus for electrical circuits; for electrical control n.e.s.o.i. . . . . . . . . . . . . . . . 645,051 781,692 8540.11 Cathode-ray television picture tubes, color, including monitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,519,123 1,374,258 8536.90 Electrical apparatus for switching or protecting electrical circuits, n.e.s.o.i. .................... 975,425 778,242 8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,026,079 894,258 

7326.90 Articles of iron or steel n.e.s.o.i. ..................................................... 880,125 747,845 8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine,

gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468,713 619,214 

8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3993,342 480,065 

1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 567,400 590,305 2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum

70 percent by weight of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 576,229 

8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619,038 640,316 3923.10 Boxes, cases, crates and similar articles, of plastics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423,475 572,358 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . 1,057,002 868,460 

8503.00 Parts of electric motors, generators and sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605,513 503,159 0201.3.0 Meat of bovine animals, boneless, fresh or chilled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427,060 514,477 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477,965 692,079 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,055,740 26,940,257 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,481,694 59,135,825 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,537,434 86,076,082 

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.
Table A-24

Leading imports from Mexico, by HTS numbers, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,956,789 10,489,963 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,478,604 5,588,372 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,406,086 7,504,118 

8528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . 4,676,319 4,713,232 

8544.30 Insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships . . . . . 3,824,036 4,384,409 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals

exported or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,825,738 3,848,199 

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine,

gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,731,295 4,268,506 

8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . 598,797 1,666,169 9401.90 Parts of seats (except medical, barbers, dentist, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,142,426 2,739,617 8704.21 Trucks, n.e.s.o.i., diesel engine, gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . 1,686,905 1,974,339 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 1,422,724 1,632,676 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,261,570 1,541,891 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,491,005 2,659,050 8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . 686,968 1,365,453 9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,492,170 1,512,339 

6203.42 Men’s or boys’ trousers, bib and brace overalls, breeches and shorts not knitted or

crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,460,281 1,517,404 

8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250,190 1,657,487 

8537.10 Boards, panels, consoles, other components incorporating apparatus for control or

distribution of electricity, for voltage not exceeding 1,000 volts . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,038,736 1,211,250 

8527.21 Radiobroadcast receivers for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,755,837 1,482,887 

8525.10 Transmission apparatus for radio or television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,671,757 1,953,317 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . 1,274,602 1,235,979 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 2,195,946 1,498,284 9032.89 Automatic regulating or controlling instruments and apparatus, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . 1,037,538 1,213,570 

6204.62 Women’s or girls’ trousers, etc., of cotton, not knitted or crocheted . . . . . . . . . . . . . . . . . . . . . . . . . . 1,350,627 1,292,223 9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. . . . . . . 700,139 855,114 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,417,085 69,805,846 7

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,091,846 64,315,330 6

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,508,931 134,121,175 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.
Table A-25

U.S. merchandise trade with Japan, by SITC numbers (revision 3), 2001-03

(1,000 dollars)

SITC Section No. Description 2001 2002 0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,370,239 7,728,331 8,01 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,651,778 1,337,552 1,32 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,143,353 2,847,895 2,93 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 516,644 563,084 54 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,940 68,174 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,305,711 6,309,818 6,66 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 2,705,395 2,345,609 2,37 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,788,154 18,413,723 18,48 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,619,198 7,288,865 7,19 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 1,390,540 1,369,963 1,3

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,545,953 48,273,014 48,8

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311,597 327,584 31 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,836 72,004 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244,244 244,413 23 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 287,692 201,675 24 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,376 23,321 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,586,718 6,912,821 7,96 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 6,712,049 6,463,473 6,57 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,153,514 92,103,559 89,28 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,739,923 11,286,632 10,29 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 4,011,439 3,626,993 3,6

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126,139,387 121,262,473 118,4

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-26

Leading exports to Japan, by Schedule B numbers, 2001-03

(1,000 dollars)

Schedule BNo. Description 2001 2002 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . 227,857 1,605,282 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,933,116 1,834,826 

1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,327,876 1,554,014 

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,748,209 1,552,185 

1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 729,584 831,161 2402.20 Cigarettes containing tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,175,014 904,546 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 1,443,665 889,520 2844.20 Uranium and its compounds enriched in U235; plutonium and its compounds ................. 557,993 878,348 

9801.10 Value of repairs or alterations of previously imported articles, repaired or altered prior to

exportation from United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 610,884 669,943 

201.30 Meat of bovine animals, boneless, fresh or chilled ...................................... 738,453 490,618 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715,005 769,118 8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601,054 658,523 8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 702,254 392,994 9880.00 Estimate of non-Canadian low value export shipments; compiled by low value and not identified

by kind of shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 651,133 556,259 

9018.39 Medical etc. needles n.e.s.o.i., catheters, cannulae and the like; parts and accessories thereof . . . . . 516,203 471,260 1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,932 483,574 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 903,385 542,925 9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. . . . . . . 461,542 434,684 4403.20 Coniferous wood in the rough, not treated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503,068 428,366 202.30 Meat of bovine animals, boneless, frozen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430,544 292,213 

203.19 Meat of swine, n.e.s.o.i, fresh or chilled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414,146 391,024 38220 Composite diagnostic or laboratory reagents, except pharmaceuticals ....................... 355,556 363,653 

1214.90 Rutabagas (swedes), mangolds, fodder roots, hay, clover, kale, vetches, and other

forage products, n.e.s.o.i., whether or not in pellet form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234,883 310,509 

8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . 328,417 266,650 8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . 382,360 332,529 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,130,132 17,904,723 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,415,821 30,368,291 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,545,953 48,273,014 

1 In 2001, exports under current Schedule B 8542.21 were reported under 8542.13, 8542.14, and 8542.19.

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.
Table A-27

Leading imports from Japan, by HTS numbers, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,689,152 11,742,046 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,052,195 22,449,907 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 4,115,304 4,076,799 8525.40 Still image video cameras and other video camera recorders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,616,894 3,120,016 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,950,244 2,370,928 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals

exported or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,529,348 2,241,948 

8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,267,810 1,650,331 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,422,973 2,487,732 3004.90 Certain medicaments put up in measured doses or in forms or packings for retail sale, n.e.s.o.i. . . . 1,018,776 1,177,984 

9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,412,262 1,314,300 8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,633,930 1,558,102 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . 1,503,383 1,542,385 8703.22 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine

over 1,000 but over 1,500 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 758,651 1,169,478 

8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 994,388 1,036,169 8429.52 Self-propelled mechanical shovels and excavators, with a 360-degree revolving superstructure . . . . 597,438 645,424 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. .................. 753,326 863,573 

8472.90 Automatic banknote dispensers, coin-sorting, pencil-sharpening, perforating or stapling,

and other office machines, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,116 201,467 

8473.40 Parts and accessories for duplicating, addressing, stapling, and other office machines, n.e.s.o.i. . . . 25,834 89,980 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,386,204 1,016,245 8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a

CPU, keyboard and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658,753 651,545 

8528.21 Video monitors, color ............................................................ 373,925 513,796 

8701.90 Tractors, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531,144 625,061 8528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . 148,905 391,295 

8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,309,281 947,908 8407.21 Outboard motors for marine propulsion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449,318 587,152 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,317,555 64,471,573 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,821,832 56,790,900 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126,139,387 121,262,473 1

1 In 2001, exports under current Schedule B 8542.21 were reported under 8542.13, 854.24, and 8542.19.

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.
Table A-28

U.S. merchandise trade with China, by SITC numbers (revision 3), 2001-03

(1,000 dollars)

SITC Section No. Description 2001 2002 0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,985 534,982 71 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,609 5,364 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,093,296 3,265,599 6,73 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 93,405 93,753 14 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,127 27,940 15 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,180,334 2,914,450 3,56 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 1,065,242 1,259,138 1,97 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,373,724 10,603,836 11,28 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,423,788 1,619,253 1,89 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 208,532 228,676 2

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,959,041 20,552,991 26,7

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,141,060 1,502,654 1,91 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,798 37,866 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595,270 634,057 73 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 393,916 355,344 44 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,765 6,327 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,054,728 2,426,268 2,96 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 10,727,348 13,330,110 16,17 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,790,258 46,018,538 60,48 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,096,748 59,076,653 66,99 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 1,229,436 1,407,847 1,8

Total all imports commodities 102,069,326 124,795,665 151,6

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 China, by Schedule B numbers, 2001-03

(1,000 dollars)

Schedule BNo. Description 2001 2002 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,012,486 888,741 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . 2,068,028 3,075,855 

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1604,754 824,260 

5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,863 137,986 

3100.00 Fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415,480 656,767 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 395,521 300,673 7404.00 Copper waste and scrap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,115 228,518 7204.49 Ferrous waste and scrap, n.e.s.o.i. .................................................. 203,554 216,078 4101.50 Whole raw bovine or equine hides and skins, weight exceeding 16 kilograms, fresh, pickled or

preserved but not tanned or further prepared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) 276,717 

8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 221,523 309,500 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. ............................................. 239,581 243,876 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,677 135,642 7602.00 Aluminum waste and scrap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,144 169,610 2902.50 Styrene (vinylbenzene; phenylethylene) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,063 37,551 

8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,969 201,121 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . 215,290 208,830 8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297,237 165,426 

4707.10 Waste and scrap of unbleached kraft paper or paperboard or of corrugated paper or

paperboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,623 78,307 

8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,342 245,789 7204.29 Waste and scrap, of non-stainless alloy steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,535 101,372 8418.69 Refrigerating or freezing equipment, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,985 26,613 9880.00 Estimate of non-Canadian low value export shipments; compiled by low value and not identified

by kind of shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,531 122,695 

8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . 269,058 246,355 

7403.11 Refined copper, cathodes and sections of cathodes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,749 26,783 8541.29 Transistors, other than photosensitive, with a dissipation rate greater than or equal to 1 Watt . . . . . 100,793 113,220 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,324,903 9,038,287 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,634,139 11,514,704 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,959,041 20,552,991 

1 In 2001, exports under current Schedule B 8542.21 were reported under 8542.13, 854.24, and 8542.19. 2 In 2001, exports under current Schedule B 4101.50 were reported under 4101.40 part.. 3 In 2001, exports under current Schedule B 8542.29 were reported under 8542.30.

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.
Table A-30

Leading imports from China, by HTS numbers, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,751,601 5,634,222 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 3,893,901 5,069,230 6403.99 Footwear not covering the ankles, with outer soles of rubber or plastics or composition

leather and uppers of leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,815,217 4,299,542 

8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU,

keyboard and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,508 632,162 

8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 871,295 1,960,057 

8521.90 Video recording or reproducing apparatus, whether or not including a video tuner, other

than magnetic tape-type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,262,084 2,171,815 

9503.90 Other toys and models, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,158,927 2,444,947 

6402.99 Footwear with outer soles and uppers of rubber or plastics n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . 2,283,033 2,271,769 9504.10 Video games used with television receiver and parts and accessories ........................ 398,259 1,571,375 

9403.60 Wooden furniture, other than of a kind used in the bedroom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,077,253 1,576,196 9505.10 Articles for Christmas festivities and parts and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . 1,470,834 1,643,258 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,325,921 1,696,379 6403.91 Footwear covering the ankles, with outer soles and uppers of rubber or plastics, excluding

waterproof footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,020 1,437,693 

9504.90 Game machines except coin-operated; board games; mah-jong; dominoes; dice ............... 987,071 918,831 8525.40 Still image video cameras and other video camera recorders .............................. 325,590 667,404 

8517.11 Line telephone sets with cordless handsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,188,275 1,304,451 4202.92 Trunks, cases, bags and similar containers, with outer surface of plastic sheeting or of

textile materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768,561 1,127,589 

8504.40 Static converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,092,615 1,100,336 9403.20 Metal furniture, other than of a kind used in offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770,143 1,016,671 8472.90 Automatic banknote dispensers, coin-sorting, pencil-sharpening, perforating or stapling,

and other office machines, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,142 359,599 

9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 784,200 957,360 9503.41 Stuffed toys, representing animals or non-human creatures, and parts and accessories . . . . . . . . . . 1,170,772 1,169,238 

9403.50 Wooden furniture, except seats, of a kind used in the bedroom . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,019 819,099 4203.10 Articles of apparel of leather or composition leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,258,233 1,081,745 

9502.10 Dolls representing only human beings and parts and accessories thereof, whether or not dressed . . 964,076 1,049,848 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,631,552 43,980,817 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,437,775 80,814,849 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,069,326 124,795,665 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.
Table A-31

U.S. merchandise trade with Taiwan, by SITC numbers (revision 3), 2001-03

(1,000 dollars)

SITC Section No. Description 2001 2002 0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,242,396 1,198,477 1,21 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,194 71,638 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,117,429 1,122,059 1,13 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 67,902 56,028 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,761 18,585 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,095,335 2,279,928 2,46 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 677,986 750,519 87 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,046,097 8,986,532 8,08 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,906,828 1,945,412 1,79 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 376,177 357,003 3

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,626,104 16,786,180 16,1

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313,516 237,091 21 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,653 9,598 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,987 137,875 13 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 81,525 38,336 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,322 5,004 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605,621 618,055 76 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 4,080,038 4,204,811 4,27 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,737,330 19,888,596 18,88 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,160,905 5,919,235 6,29 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 1,131,851 995,680 9

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,261,748 32,054,281 31,4

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 numbers, 2001-03

(1,000 dollars)

Schedule BNo. Description 2001 2002 8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,166,147 2,181,052 8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2587,261 1,008,348 

8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . 751,429 213,349 1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473,205 473,464 8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 768,228 628,514 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384,832 414,655 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. ............................................. 399,164 397,251 

9030.82 Other instruments and apparatus for measuring or checking semiconductor wafers or devices . . . . 130,229 273,704 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 295,221 250,673 9880.00 Estimate of non-Canadian low value export shipments; compiled by low value and not identified

by kind of shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214,416 213,457 

9306.90 Bombs, grenades, torpedoes, mines, missiles, etc., and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245,768 86,228 7003.19 Cast glass and rolled glass, in nonwired sheets, not body tinted, opacified, flashed, nor

having an absorbent or reflecting layer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28,218 100,351 

1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,162 159,160 9031.41 Optical instruments for inspecting semiconductor wafers or devices, or photomasks or reticles

used in manufacturing these items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196,109 232,974 

2902.43 Para-xylene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,569 36,259 

8456.91 Machine tools n.e.s.o.i. for dry etching patterns on semiconductor materials . . . . . . . . . . . . . . . . . . . 144,502 166,774 8479.90 Parts of machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . 220,118 230,185 5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124,784 114,649 4101.50 Whole raw bovine or equine hides and skins, weight exceeding 16 kilograms, fresh, pickled or

preserved but not tanned or further prepared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 120,136 

9001.90 Lenses, except contact and spectacle, prisms, mirrors and other optical elements, unmounted,

other than of glass not optically worked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,346 76,055 

9030.90 Parts, accessories of instruments, apparatus for measuring, checking, detecting electrical

quantities, or ionizing radiations, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,560 98,601 

8543.89 Electrical machines and apparatus, having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . 30,942 254,712 2926.10 Acrylonitrile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,229 84,008 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,157 63,215 8541.29 Transistors, other than photosensitive, with a dissipation rate greater than or equal to 1 Watt . . . . . 70,191 98,576 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,996,379 7,976,350 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,629,725 8,809,830 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,626,104 16,786,180 

1 In 2001, exports under current Schedule B 8542.21 were reported under 8542.13, 854.24, and 8542.19. 2 In 2001, exports under current Schedule B 8542.29 were reported under 8542.30. 3 In 2001, exports under current Schedule B 4101.50 were reported under 4101.40 part..

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.
Table A-33

Leading imports from Taiwan, by HTS numbers, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 2,864,622 2,252,651 8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least

a CPU, keyboard and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,068,483 3,407,820 

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,387,618 2,207,780 

8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 978,601 979,701 8523.90 Prepared magnetic media for sound or similar recording, unrecorded, n.e.s.o.i. ............... 520,527 607,000 

8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,005,873 951,432 8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2772,074 658,887 

9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals

exported or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 689,905 581,106 

8525.10 Transmission apparatus for radio or television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 618,149 429,353 9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417,371 390,666 6110.30 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted,

of man-made fibers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344,999 348,169 

8534.00 Printed circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540,554 385,676 8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . 484,171 460,906 7318.15 Threaded screws and bolts, of iron or steel, n.e.s.o.i., whether or not with their nuts or washers . . . . 257,846 261,865 7318.14 Self-tapping screws of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,587 257,472 8526.91 Radio navigational aid apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,674 206,411 8481.80 Taps, cocks, valves and similar appliances, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,286 227,922 9506.91 Gymnasium, playground or other exercise articles and equipment; parts and accessories thereof . . 287,292 261,372 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. .................. 208,283 233,979 

8504.40 Static converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296,758 260,518 8512.20 Electrical lighting or visual signaling equipment, for use on cycles or motor vehicles, except

for use on bicycles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,776 230,295 

8465.91 Sawing machines for working wood, cork, bone, hard rubber, hard plastics, etc . . . . . . . . . . . . . . . 223,662 246,198 8528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . 15,793 38,699 

9403.20 Metal furniture, other than of a kind used in offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,915 193,667 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . 110,201 114,316 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,054,021 16,193,860 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,207,727 15,860,421 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,261,748 32,054,281 

1 In 2001, exports under current Schedule B 8542.21 were reported under 8542.13, 854.24, and 8542.19. 2 In 2001, exports under current Schedule B 8542.29 were reported under 8542.30.

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.
Table A-34

U.S. merchandise trade with Korea, by SITC numbers (revision 3), 2001-03

(1,000 dollars)

SITC Section No. Description 2001 2002 0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,803,177 1,964,138 2,21 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163,730 100,679 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,877,703 1,772,683 1,93 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 190,401 228,036 34 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,050 79,114 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,474,439 2,750,203 3,36 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 1,018,407 898,948 97 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,112,686 11,012,536 11,18 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,842,674 1,922,166 1,99 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 386,300 422,222 4

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,899,568 21,150,725 22,5

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,972 186,869 11 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,691 43,709 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198,268 173,916 23 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 462,633 272,331 24 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,223 1,335 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 861,167 867,198 86 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 3,257,948 3,400,778 3,27 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,969,100 25,743,756 27,88 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,215,541 3,829,153 3,49 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 742,643 764,765 7

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,917,187 35,283,810 36,9

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 numbers, 2001-03

(1,000 dollars)

Schedule BNo. Description 2001 2002 8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,216,130 2,405,580 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . 1,545,256 1,537,565 

8479.90 Parts of machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . 327,768 379,865 8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2404,650 502,911 

8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 578,584 395,156 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 826,489 416,094 0202.30 Meat of bovine animals, boneless, frozen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167,023 352,907 8803.90 Parts of balloons, dirigibles, gliders, other aircraft, spacecraft, satellites, and spacecraft launch

vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,846 313,690 

8543.89 Electrical machines and apparatus, having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . 35,755 211,215 4101.50 Whole raw bovine or equine hides and skins, weight exceeding 16 kilograms, fresh, pickled or

preserved but not tanned or further prepared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 310,897 

0202.20 Meat of bovine animals, cuts with bone in, other than in half or whole carcasses, frozen . . . . . . . . . 161,214 197,853 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226,291 247,679 2926.10 Acrylonitrile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,230 207,432 

7204.49 Ferrous waste and scrap, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,624 167,008 9880.00 Estimate of non-Canadian low value export shipments; compiled by low value and not identified

by kind of shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197,896 194,249 

1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173,003 187,214 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 346,243 227,954 8542.90 Parts for electronic integrated circuits and microassemblies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149,251 218,909 9801.10 Value of repairs or alterations of previously imported articles, repaired or altered prior

to exportation from United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,563 144,849 

2707.30 Xylenes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,105 72,576 0303.80 Fish livers and roes, frozen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,385 77,553 

9001.90 Lenses, except contact and spectacle, prisms, mirrors and other optical elements, unmounted,

other than of glass not optically worked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,876 63,334 

8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . 224,908 235,430 8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,695 140,175 2902.44 Mixed xylene isomers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,223 83,632 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,297,008 9,291,729 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,602,560 11,858,996 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,899,568 21,150,725 2

1 In 2001, exports under current Schedule B 8542.21 were reported under 8542.13, 854.24, and 8542.19. 2 In 2001, exports under current Schedule B 8542.29 were reported under 8542.30. 3 In 2001, exports under current Schedule B 4101.50 were reported under 4101.40 part..

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.
Table A-36

Leading imports from Korea, by HTS numbers, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,325,894 4,318,331 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,050,787 4,830,673 

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,997,553 2,938,542 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334,303 1,238,054 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,416,807 1,773,537 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,429,991 1,508,663 8703.22 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine

over 1,000 but over 1,500 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 981,194 774,063 

8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU,

keyboard and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265,148 232,889 

8528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141,243 214,718 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . . 556,575 574,372 

8542.29 Electronic monolithic integrated circuits, other than digital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2363,040 396,417 

8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 657,713 534,418 6110.30 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of man-made fibers . 414,997 439,217 8516.50 Microwave ovens of a kind used for domestic purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422,745 451,329 8905.20 Floating or submersible drilling or production platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,438 0 

8525.40 Still image video cameras and other video camera recorders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261,125 290,021 4011.10 New pneumatic tires, of rubber, of a kind used on motor cars, including station wagons and racing cars . . . . . . . 192,150 251,921 8521.90 Video recording or reproducing apparatus, whether or not including a video tuner, other than

magnetic tape-type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,803 417,058 

8415.10 Air conditioning machines, window or wall types, self-contained, with motor-driven fan and

elements for changing the temperature/humidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230,602 257,273 

8528.21 Video monitors, color . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,110 65,517 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,388 124,672 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,736 184,510 4810.19 Writing/graphic paper and paperboard, coated with kaolin, not over 10 fiber obtained by

a mechanical process, in sheets, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) 106,126 

9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168,791 165,746 4011.20 New pneumatic tires, of rubber, of a kind used on buses or trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,388 158,162 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,963,521 22,246,230 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,953,665 13,037,581 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,917,187 35,283,810 

1 In 2001, imports under current HTS 8542.21 were reported under 8542.13, 8542.14, and 8542.19. 2 In 2001, imports under current HTS 8542.29 were reported under 8542.30. 3 Not applicable. 4 In 2001, imports under current HTS 4810.19 were reported under 4810.11 part.

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.
Table A-37

U.S. merchandise trade with Brazil, by SITC numbers (revision 3), 2001-03

(1,000 dollars)

SITC Section No. Description 2001 2002 0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145,443 228,741 21 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,644 6,630 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,468 271,123 33 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 339,210 291,249 24 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,863 5,025 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,897,789 2,611,608 2,76 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 652,310 493,689 47 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,901,679 6,104,891 4,98 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,114,270 934,724 69 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 349,848 259,992 2

Total all exports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,662,524 11,207,674 9,9

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 875,629 998,593 1,31 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157,207 219,391 22 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,032,068 1,038,799 1,13 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . 1,110,916 1,099,914 1,84 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,341 15,803 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570,527 591,079 66 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . 2,627,429 3,209,491 3,47 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,504,810 5,929,705 6,18 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700,744 1,732,403 1,79 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . 818,419 774,050 1,0

Total all imports commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,415,091 15,609,228 17,7

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-38

Leading exports to Brazil, by Schedule B numbers, 2001-03

(1,000 dollars)

Schedule BNo. Description 2001 2002 8411.12 Turbojets of a thrust exceeding 25 kN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 584,752 408,335 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 515,180 346,653 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430,462 332,910 

3100.00 Fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184,955 173,561 8431.43 Parts for boring or sinking machinery, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226,511 241,957 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,235 158,210 

9880.00 Estimate of non-Canadian low value export shipments; compiled by low value and not identified

by kind of shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243,542 187,527 

2701.12 Bituminous coal, whether or not pulverized, but not agglomerated . . . . . . . . . . . . . . . . . . . . . . . . . . 179,017 165,334 

8803.90 Parts of balloons, dirigibles, gliders, other aircraft, spacecraft, satellites, and spacecraft launch

vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,783 197,477 

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . 92,303 130,307 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . 245,441 130,361 

8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,082 153,835 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . 668,982 465,693 8409.99 Parts for use with compression-ignition internal combustion piston engines . . . . . . . . . . . . . . . . . . . . 51,196 101,791 8411.11 Turbojets of a thrust not exceeding 25 kilonewtons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,221 41,767 1006.10 Rice in the husk, paddy or rough . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 6,437 3808.30 Herbicides, antisprouting products, and plant-growth regulators, put up in forms or packings for

retail sale or as preparations or articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,644 96,297 

8542.21 Electronic monolithic digital integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1201,761 83,758 

5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,534 25,750 3808.10 Insecticides, put up in forms or packings for retail sale or as preparations or articles . . . . . . . . . . . . 64,587 75,638 1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,928 95,763 9022.90 Radiation generators or beam delivery units, and other radiation apparatus n.e.s.o.i., and parts

and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,631 28,174 

8431.49 Parts and attachments for derricks, cranes, self-propelled bulldozers, graders, and other

grading, scraping machinery, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158,213 72,037 

2713.12 Petroleum coke, calcined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,765 57,324 2902.50 Styrene (vinylbenzene; phenylethylene) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,416 47,339 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,755,141 3,824,233 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,907,383 7,383,440 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,662,524 11,207,674 

1 In 2001, exports under current Schedule B 8542.21 were reported under 8542.13, 8542.14, and 8542.19.

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.
Table A-39

Leading imports from Brazil, by HTS numbers, 2001-03

(1,000 dollars)

HTS No. Description 2001 2002 8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . 1,908,043 1,828,490 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 840,174 1,013,223 

9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported

or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528,388 562,601 

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent

by weight of such products, not light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 308,015 

6403.99 Footwear not covering the ankles, with outer soles of rubber or plastics or composition leather and

uppers of leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 834,438 790,018 

2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,331 231,093 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520,899 508,737 

4703.29 Chemical woodpulp, soda, or sulfate, other than dissolving grades, semibleached or bleached,

nonconiferous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381,935 345,859 

7201.10 Nonalloy pig iron containing 0.5 percent or less phosphorus by weight, in primary forms . . . . . . . . 362,651 386,533 2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum

70 percent by weight of such products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) 343,416 

8414.30 Compressors of a kind used in refrigerating equipment, including air conditioning . . . . . . . . . . . . . . 209,773 283,274 8408.20 Compression-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,942 178,869 0901.11 Coffee, not roasted, not decaffeinated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,655 193,395 

2401.20 Tobacco, partly or wholly stemmed/stripped . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148,361 202,013 7207.12 Semifinished iron/nonalloy steel products, under 0.25 percent carbon, rectangular/not square,

width not less than twice thickness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,364 394,039 

8409.99 Parts for use with compression-ignition internal combustion piston engines . . . . . . . . . . . . . . . . . . . . 133,054 172,552 6802.93 Worked monumental or building stone n.e.s.o.i., of granite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,209 114,434 

4407.10 Coniferous wood sawn or chipped lengthwise, sliced or peeled, of thickness exceeding 6mm . . . . . . 120,157 134,676 1602.50 Other prepared or preserved meat, meat offal, or blood, of bovine animals, n.e.s.o.i. . . . . . . . . . . . 92,837 121,989 7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder . . . . . . . . . 221,402 161,476 4409.10 Wood, including strips and friezes, continuously shaped along any of its edges or faces,

coniferous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,636 140,284 

2009.11 Orange juice, frozen, whether or not sweetened . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,502 62,181 4412.19 Plywood consisting solely of wood sheets, with both outer plies of coniferous wood, each ply

not over 6 millimeters in thickness ................................................. 21,674 44,687 

6302.60 Toilet and kitchen linen, of terry toweling or similar terry fabrics, of cotton . . . . . . . . . . . . . . . . . . . . 75,753 112,235 

8708.39 Brakes and servo-brakes and parts for motor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,164 84,792 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,219,345 8,718,881 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,195,745 6,890,347 

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,415,091 15,609,228 

1 In 2001, imnports under current HTS 2710.19 were reported under 2710.00 part. 2 In 2001, imnports under current HTS 2710.11 were reported under 2710.00 part.

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.