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The Year in Trade 2001:

Operation of the Trade Agreements Program

5/02
U.S. International Trade Commission

Washington, DC 20436

May 2002

www.usitc.gov

Publication 3510

53rd Report

The Year in Trade 2001

Operation of the Trade Agreements Program
This report was principally prepared by

Country and Regional Analysis Division

Arona M. Butcher, Chief

Diane Manifold, Project Leader

Nannette Christ, Deputy Project Leader

Laurie-Ann Agama Michael Barry

Victoria Chomo Joanne Guth

Thomas Jennings Magdolna Kornis

Walker A. Pollard James Stamps

Edward C. Wilson S. Michael Youssef

Office of the General Counsel

William W. Gearhart

Office of Industries

Laura V. Rodriguez

Office of Investigations

Lynn Featherstone

Office of Unfair Import Investigations

Jeffrey Whieldon

Office of Tariff Affairs and Trade Agreements

Terry O’Brien

Daniel Shepherdson

Office of Information Systems

Barbara V. Bobbitt

Supporting assistance was provided by:

Patricia M. Thomas, Secretarial Services
iii

Table of Contents

Page

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

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

Summary of trade agreement activities in 2001 1-1 ................

World Trade Organization 1-2 .............................

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

Regional trade initiatives 1-7 ...............................

North American Free Trade Agreement 1-7 ................

Free Trade Area of the Americas 1-7 .....................

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

African Growth and Opportunity Act 1-8 ..................

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

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

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

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

Japan 1-10 ..........................................

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

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

Korea 1-11 ..........................................

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

Administration of U.S. trade laws and regulations 1-11 ............

International economic environment and world trade in 2001 1-12 .....

International economic environment 1-12 .......................

Canada 1-16 .........................................

Europe 1-17 ..........................................

Latin America 1-18 ....................................

Asia 1-20 ............................................

Russia and the Commonwealth of Independent States 1-21 ......

U.S. merchandise trade in 2001 1-21 ..........................

U.S. balance of payments position 1-22 ........................

Chapter 2. Selected Trade Activities in the WTO and the OECD . . 2-1

World Trade Organization 2-1 ...............................

Fourth Ministerial Conference 2-1 ...........................

Implementation issues 2-2 ..............................

Negotiations already underway 2-3 ..........................

Agriculture 2-3 .......................................

Phase One agriculture negotiations 2-3 ................

Phase Two agriculture negotiations 2-3 .................

Future schedule 2-4 ................................
iv

Table of Contents—Continued

Page

Chapter 2. Selected Trade Activities in the WTO and the

OECD—Continued

Services 2-4 .........................................

Phase One services negotiations 2-5 ...................

Phase Two services negotiations 2-5 ...................

Future schedule 2-6 ................................

Intellectual property rights 2-6 ...........................

Negotiations deferred 2-7 .................................

Introduction 2-7 ......................................

Investment 2-8 .......................................

Competition policy 2-9 .................................

Transparency in government procurement 2-9 ..............

Trade facilitation 2-10 ..................................

Negotiations and work program added at Doha 2-10 .............

Market access for nonagricultural products 2-10 ..............

WTO rules 2-10 .......................................

Dispute settlement understanding 2-11 .....................

Trade and environment 2-11 .............................

Electronic commerce 2-11 ...............................

The Doha Development Agenda 2-12 .........................

Introduction 2-12 ......................................

Small economies 2-13 ..................................

Trade, debt, and finance 2-13 ............................

Trade and transfer of technology 2-13 .....................

Technical cooperation and capacity building 2-13 .............

Least developed countries 2-15 ...........................

Special and differential treatment 2-15 .....................

Declaration on the TRIPs agreement and public health 2-15 .........

Decision on Implementation-related Issues and Concerns 2-16 .......

Organization and management of the work program 2-19 .........

Selected WTO activities 2-20 ................................

Dispute settlement 2-20 .................................

Dispute panels 2-20 .................................

Appeals panels 2-20 ................................

Arbitration and compliance panels 2-20 .................

Retaliation 2-21 ....................................

Membership 2-21 ......................................

Accessions 2-21 ....................................

Organization for Economic Cooperation and Development 2-21 .......

Trade Committee 2-21 .....................................

Export Credit Group Negotiations 2-23 ........................
v

Table of Contents—Continued

Page

Chapter 3. Regional Trade Activities .......................... 3-1

North American Free Trade Agreement 3-1 ......................

U.S. trade with NAFTA partners 3-1 ..........................

Free Trade Commission 3-2 ................................

Commission for Labor Cooperation 3-2 .......................

Commission for Environmental Cooperation 3-3 .................

Dispute Settlement 3-4 ....................................

Free Trade Area of the Americas 3-8 ...........................

Background 3-8 .........................................

Status of the negotiations 3-9 ...............................

United States-Chile Free Trade Agreement Negotiations 3-10 .......

Asia Pacific Economic Cooperation forum 3-11 ....................

African Growth and Opportunity Act 3-13 ........................

Apparel provisions 3-14 ....................................

AGOA Forum 3-15 .......................................

Chapter 4. U.S. Relations with Major Trading Partners 4-1 ..........

European Union 4-1 ........................................

Bananas 4-2 ............................................

Background 4-2 ......................................

Developments during 2001 4-3 ..........................

Agricultural biotechnology 4-6 ..............................

Foreign sales corporations 4-10 ..............................

Background 4-10 ......................................

Developments during 2001 4-11 ..........................

Canada 4-11 ............................................

U.S.-Canadian Softwood Lumber Agreement 4-12 ...............

Background 4-12 ......................................

Other bilateral developments 4-14 ............................

Wheat 4-14 ..........................................

Mexico 4-15 ............................................

Mexico’s telecommunications practices 4-16 .....................

Access of Mexican trucks to U.S. roads 4-16 ....................

Background 4-17 ......................................

The dispute during 2001 4-18 ............................

Year-end agreement 4-18 ...............................

Mexican sugar and U.S. sweeteners 4-19 ......................

Sugar 4-19 ..........................................

High-fructose corn syrup 4-20 ............................

Year-end developments 4-22 .............................
vi

Table of Contents—Continued

Page

Chapter 4. U.S. Relations with Major Trading Partners—Continued

Japan 4-23 ............................................

Autos and parts 4-24 ......................................

U.S.-Japan Economic Partnership for Growth 4-25 ...............

China . . . . 4-27 ............................................

Trade with the United States 4-27 .............................

WTO accession 4-28 ......................................

China’s compliance 4-29 ...................................

U.S. technical assistance in China for WTO 4-30 ................

Taiwan . . . 4-30 .........................................

Trade with the United States 4-30 .............................

WTO accession 4-35 ......................................

U.S.-Taiwan Free Trade Agreement Act 4-36 ....................

Other issues 4-36 .........................................

Korea 4-37 ................................................

Beef 4-38 ...............................................

Background 4-39 ......................................

Brazil 4-42 ................................................

Bilateral consultative mechanism launched 4-42 ..................

Patent protection: HIV/AIDS drugs 4-43 ........................

Chapter 5. Administration of U.S. Trade Laws and Regulations ... 5-1

Import relief laws 5-1 .......................................

Safeguard actions 5-1 ....................................

Adjustment assistance 5-4 ...................................

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

NAFTA transitional assistance to workers 5-5 ...............

Assistance to firms and industries 5-7 .........................

Laws against unfair trade practices 5-8 .........................

Section 301 investigations 5-8 ...............................

Super 301 5-11 .......................................

Special 301 5-11 ......................................

Antidumping investigations 5-12 ..............................

Antidumping measures on certain hot-rolled steel products

from Japan 5-14 .......................................

Countervailing duty investigations 5-15 ........................

Reviews of outstanding antidumping and countervailing duty

orders/suspension agreements 5-15 ........................

Section 337 investigations 5-16 ..............................

Other import administration laws and programs 5-18 ...............

Tariff preference programs 5-18 .............................
vii

Table of Contents—Continued

Page

Chapter 5. Administration of U.S. Trade Laws and

Regulations—Continued

Generalized System of Preferences 5-18 ....................

Caribbean Basin Economic Recovery Act 5-20 ................

Andean Trade Preference Act 5-23 ........................

National security import restrictions 5-25 .......................

U.S. textile and apparel trade program 5-25 ......................

The Uruguay Round Agreement on Textiles and Clothing 5-26 .......

U.S. quota activity in 2001 5-26 ..............................

China and Taiwan 5-27 .................................

Pakistan 5-29 .........................................

Cambodia and Vietnam 5-30 ............................

Trade preferences for Sub-Saharan Africa and Caribbean

Basin 5-32 ............................................

Africa Growth and Opportunity Act 5-32 ...................

Caribbean Basin Trade Partneship Act 5-34 .................

Andean Trade Preference Expansion Act 5-36 ...............

U.S. textile and apparel trade in 2001 5-37 .....................

Major U.S. trade sanctions activities 5-38 .........................

Figures

1-1. Summary of 2001 trade agreement activities 1-3 ..................

1-2. U.S. merchandise trade with the world, by product sectors, 2001 1-23 . .

1-3. U.S. merchandise exports, imports, and trade balance with major

trading partners, 2001 1-24 .................................

2-1. Titles and contents of the WTO Doha Ministerial Declaration

and other texts 2-2 .......................................

2-2. Summary of the WTO Decision on Implementation-related

Issues and Concerns, adopted November 14, 2001 2-17 ...........

Tables

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

major trading partners projections, 2000-2002 1-14 .............

1-2. Summary of U.S. international transactions, 2000-2001 1-25 .........

2-1. WTO membership in 2001 2-22 ................................

3-1. U.S. trade with NAFTA partners, 1999-2001 3-1 ..................

4-1. EU banana import regime 4-5 ................................

4-2. High-fructose corn syrup (HFCS): Formal U.S. complaints about

antidumping duties and the Mexican responses 4-22 ..............

4-3. Selected U.S. Government-supported WTO training events for

China 4-32 ............................................
viii

Table of Contents—Continued

Page

Tables—Continued

4-4. Selected non-government-supported, and foreign-supported

WTO training events for China 4-34 ..........................

5-1. Results of petitions filed under the Trade Adjustment Assistance

program, FY 2000 and FY 2001 5-6 .........................

5-2. Benefits and services provided under the Trade Adjustment

Assistance program, FY 2000 and FY 2001 5-6 .................

5-3. Results of petitions filed under the NAFTA Transitional Adjustment

Assistance program, FY 2000 and FY 2001 5-6 .................

5-4. Benefits and services provided under the NAFTA Transitional

Adjustment Assistance program, FY 2000 and FY 2001 5-7 .......

5-5. Active 301 cases in 2001 5-10 .................................

5-6. U.S. imports for consumption from GSP beneficiaries and the

world, 2001 5-21 .........................................

5-7. U.S. imports for consumption and imports under the GSP from

leading beneficiaries and total, 2001 5-22 ......................

5-8. U.S. imports for consumption from CBERA countries, 1999-2001 5-23 ...

5-9. U.S. imports for consumption from ATPA countries, 1999-2001 5-24 ....

5-10. Trading partners with which the United States has textile and

apparel quotas, as of Jan. 1, 2002, and U.S. imports of textiles

and apparel from these partners in 2001 5-28 ..................

5-11. Comparison of Senate and House versions of H.R. 3009 5-38 .........

Appendix

Statistical tables

A-1. U.S. merchandise trade with the European Union, by SITC

numbers (revision 3), 1999-2001 A-2 .......................

A-2. Leading exports to the European Union, by Schedule B numbers,

1999-2001 A-3 ........................................

A-3. Leading imports from the European Union, by HTS numbers,

1999-2001 A-4 ........................................

A-4. U.S. merchandise trade with Canada, by SITC numbers

(revision 3), 1999-2001 A-5 ..............................

A-5. Leading exports to Canada, by Schedule B numbers,

1999-2001 A-6 ........................................

A-6. Leading imports from Canada, by HTS numbers,

1999-2001 A-7 ........................................

A-7. U.S. merchandise trade with Mexico, by SITC numbers (revision 3),

1999-2001 A-8 ........................................

A-8. Leading exports to Mexico, by Schedule B numbers, 1999-2001 A-9 .

A-9. Leading imports from Mexico, by HTS numbers, 1999-2001 A-10 ....

A-10. U.S. merchandise trade with Japan, by SITC numbers (revision 3),

1999-2001 A-11 ........................................
ix

Table of Contents—Continued

Page

Appendix—Continued

Statistical tables

A-11. Leading exports to Japan, by Schedule B numbers, 1999-2001 A-12 . .

A-12. Leading imports from Japan, by HTS numbers, 1999-2001 A-13 .....

A-13. U.S. merchandise trade with China, by SITC numbers (revision 3),

1999-2001 A-14 ........................................

A-14. Leading exports to China, by Schedule B numbers, 1999-2001 A-15 . .

A-15. Leading imports from China, by HTS numbers, 1999-2001 A-16 .....

A-16. U.S. merchandise trade with Taiwan, by SITC numbers (revision 3),

1999-2001 A-17 ........................................

A-17. Leading exports to Taiwan, by Schedule B numbers, 1999-2001 A-18 .

A-18. Leading imports from Taiwan, by HTS numbers, 1999-2001 A-19 ....

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

(revision 3), 1999-2001 A-20 ..............................

A-20. Leading exports to Korea, by Schedule B numbers, 1999-2001 A-21 . .

A-21. Leading imports from Korea, by HTS numbers, 1999-2001 A-22 .....

A-22. U.S. merchandise trade with Brazil, by SITC numbers (revision 3),

1999-2001 A-23 ........................................

A-23. Leading exports to Brazil, by Schedule B numbers, 1999-2001 A-24 . .

A-24. Leading imports from Brazil, by HTS numbers, 1999-2001 A-25 .....

A-25. Antidumping cases active (114 total) in 2001, by USITC

investigation number A-26 ................................

A-26. Antidumping orders in effect (264 total) as of Dec. 31, 2001 A-30 ....

A-27. Countervailing duty cases active (125 total) in 2001, by USITC

investigation number A-37 ................................

A-28. Countervailing duty orders in (149 total) effect as of

Dec. 31, 2001 A-38 ......................................

A-29. Reviews of existing antidumping orders and suspension agreements

completed (29 total) in 2001, by date of completion A-40 ........

A-30. Reviews of existing countervailing duty orders and suspension

agreements completed (3 total) in 2001, by date

of completion A-41 ......................................

A-31. Section 337 investigations and related proceedings completed

by the U.S. International Trade Commission during 2001

and those pending on Dec. 31, 2001 A-42 ....................

A-32. Outstanding sec. 337 exclusion orders as of Dec. 31, 2001 A-45 .....

A-33. U.S. imports for consumption of leading GSP-duty-free

imports, 2001 A-48 ......................................

A-34. U.S. imports for consumption and imports eligible for GSP

treatment, by import categories under the Harmonized Tariff

Schedule, 2001 A-49 ....................................

A-35. U.S. imports for consumption of leading imports under CBERA,

1999-2001 A-50 ........................................
x

Table of Contents—Continued

Page

Appendix—Continued

Statistical tables

A-36. U.S. imports for consumption under CBERA, by source, 1997-2001 A-51

A-37. U.S. imports for consumption of leading imports under ATPA,

1999-2001 A-53 ........................................

A-38. U.S. imports for consumption under ATPA provisions, by

source, 1999-2001 A-52 ..................................

A-39. U.S. imports for consumption of leading imports under AGOA

for 2001 A-54 ..........................................

A-40. U.S. imports for consumption under AGOA, by sources for,

2001 A-56 ............................................
xi

List of Frequently Used Abbreviations

and Acronyms

ACP African, Caribbean, and Pacific Nations

AD Antidumping

AGOA African Growth and Opportunity Act

APEC Asia-Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

ATPA Andean Trade Preference Act

CAP Collective Action Plan

CBERA Caribbean Basin Economic Recovery Act

CBTPA Caribbean Basin Trade Partnership Act

CFTA United States-Canada Free Trade Agreement

CTS Council for Trade in Services

CVD Countervailing Duty

DSB Dispute Settlement Body

EU European Union

FCFS First Come, First Served

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

IAP Individual Action Plan

IF Integrated Framework for Trade-Related Technical Assistance

IMF International Monetary Fund

IPR Intellectual Property Rights

LDC Least Developed Country

LTFV Less Than Fair Value

MRA Mutual Recognition Agreement

NAFTA North American Free Trade Agreement

NAO National Administrative Office

NGO Nongovernmental Organization

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
xii

List of Frequently Used Abbreviations

and Acronyms—Continued

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

USITA International Trade Administration, U.S. Department of

Commerce

USITC U.S. 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 53rd 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 2001. 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 Regional or other trade agreements activities without U.S.

participation are not covered in this report.

Chapter 1 summarizes selected trade events and trade agreements activities during the

year and provides an overview of the economic environment in 2001. These subjects

are generally discussed in greater depth elsewhere in the report. Chapter 2 focuses on

the activities of the World Trade Organization (WTO) and the Organization for

Economic Cooperation and Development (OECD). Chapter 3 discusses developments

in major regional fora, including the North American Free Trade Agreement

(NAFTA), the Free Trade Area of the Americas (FTAA), and the Asia-Pacific Economic

Cooperation (APEC) forum. Chapter 4 focuses on bilateral trade agreements

concluded during the year, as well as other 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. Chapter 5 discusses the

administration of U.S. trade laws, regulations, and programs. The final section of the

report contains a statistical appendix.

Summary of Trade Agreements Activities in 2001

U.S. trade agreements activities in 2001 included U.S. participation in multilateral

negotiations in services and agriculture as mandated by the Uruguay Round

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, March 25, 1975.
1-2

Agreements; regional negotiations in NAFTA, the FTAA, APEC, and African Growth

and Opportunity Act (AGOA); bilateral developments; and the settling or adjudication

of various trade disputes. Negotiations on a United States-Chile Free Trade Agreement

continued into 2002. Highlights of key trade agreements activities, some of which are

discussed in more detail throughout the report, are presented in figure 1-1.

World Trade Organization

In 2001, developments in the World Trade Organization (WTO) centered around the

Fourth WTO Ministerial Conference, held November 9 to 14, 2001 in Doha, Qatar. At

Doha, trade ministers agreed to expand the scope of negotiations in progress, and to

continue to examine other subjects that may be integrated into the current negotiations

by a decision of the ministers to be taken at the next ministerial meeting in July 2003.

The current negotiations are scheduled to conclude by January 1, 2005, as part of a

“single undertaking” where all issues must be agreed upon before any one can be

considered finalized.

The negotiations on agriculture and services–underway since February 2000–have

settled organizational priorities and completed the first stage of talks, where 125

countries fielded 44 initial proposals by the first stage review session held in March

2001. Negotiations got underway to establish individual geographical indications that

would increase intellectual property protection for wines and spirits, following

discussions–notably with transition economy countries in Central Europe, among

others–over whether to expand the scope of these talks to other products.

Geographical indications identify a good with a given quality, reputation, or other

characteristic that is essentially attributable to its geographical origin in a particular

region, country, or locality. Although closely associated with agriculture–the

fundamental concept of geographical indications involves intellectual property rights,

which leads to the negotiations being held under the TRIPs Agreement as a

consequence.

At Doha, ministers agreed to expand the negotiations involving agriculture, services,

and geographical indications, to include market-access negotiations on

nonagricultural products aimed at reducing or eliminating tariff and nontariff

barriers–including tariff peaks, high tariffs, and products subject to tariff escalation.

Ministers also agreed as part of the agenda adopted at Doha to “negotiations aimed

at clarifying and improving disciplines under the Agreements on Implementation of

Article VI of the GATT 1994 and on Subsidies and Countervailing Measures, while

preserving the basic concepts, principles and effectiveness of these Agreements and

their instruments and objectives,” while taking into account the needs of developing
1-3

Figure 1-1

Summary of 2001 Trade Agreement Activities

Date Event

January

17 The United States and European Union implement mutual recognition agreement (MRA) sectoral annexes covering trade in telecommunications and

electronic products. The MRA eliminates duplicative product testing

requirements.

25 Kenya becomes the first African country to be cleared to receive duty- and

quota-free benefits for apparel products under the Africa Growth and

Opportunity Act.

February

6 A NAFTA panel determines that the United States must open its borders to

Mexican trucks, provided they meet specified safety standards.

26 The European Union approves a plan, known as “Everything But Arms,” to

offer unrestricted, duty-free access for almost all imports from least developed

countries.

March

3 The United States and Egypt agree on steps to be undertaken by them to

establish basis for a free trade and investment framework.

31 The United States-Canadian Softwood Lumber Agreement expires.

April

11 The United States and the European Union end a longstanding dispute over the

EU’s banana import regime, agreeing on an arrangement providing transition

to a tariff-only system by 2006. The arrangement goes into effect July 1, 2001.

20-22 Western Hemisphere heads of state at the third Summit of the Americas affirm

plans to complete FTAA negotiations by January 2005. Leaders also endorse

plans for a transparent negotiating process, including publication of the

preliminary draft FTAA agreement and increased communication with civil

society representatives.

May

June

22 The United States and Poland sign a comprehensive trade agreement covering

a range of industrial and farm products.

22 United States Trade Representative Zoellick asks the International Trade

Commission to investigate whether surging steel imports have seriously injured

or threatened the United States industry under Section 201 safeguard provision.

25 The United States and Brazil agree to use newly created consultative

mechanism to promote cooperation on HIV/AIDS and address a United States

World Trade Organization patent dispute.

30 The United States and Japan agree to “The Regulatory Reform and Competition

Policy Initiative” aimed at promoting economic growth in the two countries. The

purpose of the initiative is to conduct a new series of discussions on reducing

regulations, enhancing competition, and improving market access.
1-4

Figure 1-1—Continued

Summary of 2001 Trade Agreement Activities

Date Event

July

1 EU implements new banana import regime and, as a result, the United States

lifts retaliatory duties on $191 million worth of EU products.

3 Public release of preliminary draft of FTAA agreement.

12 The United States publishes regulations implementing legislation authorizing

certain agricultural and medical exports to Cuba, Iran, Libya, and Sudan.

August

3 A NAFTA panel directs Mexico to remove the antidumping duties it had

imposed on high-fructose corn syrup from the United States.

7 United States provides enhanced GSP duty-free access for eligible products of

India.

20 A World Trade Organization compliance panel report is circulated to Members

concluding that the amended United States legislation concerning its foreign

sales corporation (FSC) tax is still inconsistent with WTO trade rules. The ruling

opens the way for the European Union to request compensation.

23 The World Trade Organization establishes a dispute-settlement panel to rule on

whether the “Byrd Amendment” to the United States Tariff Act of 1930 is

compatible with multilateral trade rules. Additional complainants lead to this

panel being established anew on October 25, 2001.

September

22 President Bush waives economic sanctions which were imposed on India and

Pakistan in 1998 after their detonations of nuclear devices.

24 The United States hosts “four-plus-one” meetings with Argentina, Brazil,

Paraguay, and Uruguay on expanding world and regional trade.

24 Trade officials of the United States, El Salvador, Guatemala, Honduras, and

Nicaragua discuss opportunities to deepen trade and investment relations

between the United States and Central America.

27 The United States, Australia, and New Zealand settle in a World Trade

Organization dispute when the United States informs the WTO that the United

States safeguard measure on lamb meat imports from Australia and New

Zealand will end on November 15, 2001.

28 The implementing legislation for the United States-Jordan Free Trade

Agreement (PL 107-43) is signed by President Bush.

October

15 The United States appeals World Trade Organization ruling on FSC Repeal

and Extraterritorial Income Exclusion Act of 2000 tax law.

16 President Bush signs into law the United States-Vietnam Bilateral Trade

Agreement, effective December 10, 2001.

18 The United States and Japan announce the creation of a new consultative

forum to address bilateral automotive issues.

22 Under action taken in its Section 201 safeguard investigation, the United States

International Trade Commission announces affirmative or equally divided injury

determinations for 16 of 33 steel product categories established for data

gathering purposes and proceeds to remedy phase.
1-5

Figure 1-1—Continued

Summary of 2001 Trade Agreement Activities

Date Event

October

29 At the first annual Africa Growth and Opportunity Act Forum, President Bush

announces three trade initiatives for Africa: creation of a new $200 million

Overseas Private Investment Corporation investment support facility, launch of

the Trade for African Development and Enterprise Program, and establishment

of a United States Trade and Development Agency regional office in

Johannesburg.

29 The United States signs a Joint Declaration on Electronic Commerce with

Nigeria.

29 The United States signs a Trade and Investment Framework Agreement (TIFA)

with the Common Market for Eastern and Southern Africa.

30 The U.S. Department of Commerce finds, in a preliminary determination

antidumping margins ranging from 5.94 percent to 19.24 percent in the

softwood lumber investigation.

November

1 The United Stated International Trade Commission finds that softwood lumber

from Canada is being dumped in the United States.

7 USTR releases draft environmental review of the U.S.-Chile Free Trade

Agreement for public comment.

9 The World Trade Organization’s Fourth Ministerial Conference opens in Doha,

Qatar.

10 Members of the World Trade Organization formally approve China as a

member of the World Trade Organization, effective December 11, 2001.

11 Members of the World Trade Organization formally approve Taiwan as a

member of the World Trade Organization, effective January 1, 2002.

14 The World Trade Organization Members adopt at their Fourth Ministerial

Conference in Doha, Qatar, a work program consisting of: (1) negotiations on

agriculture, services, and certain aspects of intellectual property rights, started in 2000 as part of the Uruguay Round Agreements; (2) negotiations to begin in

2002 concerning industrial tariffs, some aspects regarding trade and the

environment, and implementation issues (i.e., various difficulties encountered by some developing country members in carrying out WTO agreements); and (3)

prospective negotiations possibly beginning after 2003 on subjects such as

trade and investment, and trade and competition policy, following their

consideration at the Fifth Ministerial Conference.

14 Canada and Mexico sign agreement to cooperate on competition policy and

enforcement.

December

6 The United States House of Representatives votes to renew the trade promotion

authority.

14 The United States signs a Framework for Economic Cooperation pact with

Thailand. The agreement includes provisions on trade, investment, intellectual

property rights protection, agricultural cooperation, scientific and technological

cooperation, and transport and telecommunications.
1-6

Figure 1-1—Continued

Summary of 2001 Trade Agreement Activities

Date Event

17 The United States-Jordan Free Trade Agreement enters into force.

19 The United States International Trade Commission submits findings and

recommendations in its Section 201 safeguard investigation involving steel

imports.

December

24 President Bush signs legislation clearing the way for the administration to

impose economic sanctions on Zimbabwe’s leadership and to order United

States representatives to international financial institutions to try to block aid or

debt relief to the country.

27 President Bush announces the formal granting of permanent normal trading

status to China.

Sources: Bureau of National Affairs, International Trade Daily, Inside U.S. Trade, and

press articles including Office of U.S. Trade Representative press releases.

and least-developed country members.3 Lastly, the ministers agreed to address

certain aspects of trade and the environment in the negotiations.

A decision to include additional issues in the current negotiations was deferred until the

next ministerial conference, scheduled for July 2003 in Mexico City. These issues deal

with subjects such as trade and investment, trade and competition policy, greater

transparency in government procurement, and trade facilitation measures.

Finally, an overarching concern of ministers at the Doha conference was how to

ensure that a number of developing country members complete implementation of

their Uruguay Round commitments, due originally on January 1, 2000. Many of these

countries agree that the anticipated benefits of the Round have not yet materialized

and that certain developed country members have not effectively implemented WTO

commitments to provide the special and differential treatment developing country

members need to help them make the necessary adjustments. The Doha Ministerial

Declaration consequently included many references to providing developing and least

developed country members with technical assistance to overcome this hurdle, and the

theme of the Doha Development Agenda was adopted subsequently to underscore this

priority focus on technical assistance.

Four new members completed accession negotiations to the WTO in 2001: Lithuania,

Moldova, China, and the Separate Customs Territory of Taiwan, Penghu, Kinmen and

Matsu (known in the WTO as Chinese Taipei), the latter delaying its date for formal

accession to January 1, 2002. Another 31 states were in various stages of accession at

year’s end.

3WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001, WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 28. The WTO Agreement on

Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 is known

more commonly as the WTO Agreement on Anti-Dumping Practices, or more simply, the

Antidumping Agreement.
1-7

Organization for Economic Cooperation and

Development

In 2001, the Trade Committee of the Organization for Economic Cooperation and

Development (OECD) focused its efforts on trade and economic development issues

centered largely on preparations for the prospective launch on a new round of

multilateral trade negotiations at the WTO Fourth Ministerial Conference in November

2001. In addition, the OECD Export Credit Group reached agreement on several

issues regarding use of officially supported export credits: (1) discouraging award of

these credits for nonessential capital goods or projects that merely increase the poorest

countries’ debt burden without contributing to their social or economic development,

and (2) urging environmental impact evaluations for projects awarded such credits.

Regional Trade Initiatives

North American Free Trade Agreement

During 2001, NAFTA partners completed their fourth round of accelerated tariff

elimination, which was implemented on January 1, 2002 on $25 billion worth of

NAFTA trade. Trade ministers continued working towards liberalization of the NAFTA

rules of origin. Twenty-four petitions were filed at National Administrative Offices

(NAO) since January 1, 1994, sixteen of which were filed with the U.S. NAO alleging

labor violations. The Commission for Environmental Cooperation distributed 17

research grants totaling $400,000 in 2001. Six binational panels were formed in

2001 under Chapter 19 of the NAFTA . Five of the six Chapter 19 cases submitted to

NAFTA binational panels in 2001 were active by January 1, 2002. The cases all relate

to U.S. agencies’ determinations on products from Mexico. Two NAFTA Chapter 19

binational panels issued decisions in 2001. A panel decision was issued on August 3,

2001, against a dumping determination by the Mexican Secretaria de Economia

regarding imports of high-fructose corn syrup originating in the United States. A

NAFTA Chapter 20 arbitral panel decision was issued on February 6, 2001, against

the United States regarding Mexican cross-border trucking services and investment.

Free Trade Area of the Americas

Negotiations for the FTAA continued during 2001. At the Third Summit of the

Americas, held in Canada April 20-22, 2001, the heads of state of the FTAA countries

confirmed their intention to conclude FTAA negotiations no later than January 2005,

and to seek entry into force of the agreement as soon as possible thereafter, but no

later than December 2005. The ministers also agreed to make available to the public

the consolidated draft text of the FTAA agreement. This was done on July 3, 2001.
1-8

In addition to FTAA negotiations, the United States also participated in negotiations for

a U.S.-Chile Free Frade Agreement (FTA). Bilateral negotiations with Chile were

launched on December 6, 2000. Formal negotiations began in Washington, D.C., on

December 6, 2000, and continued throughout 2001 and early 2002.

Asia-Pacific Economic Cooperation

In 2001, China held the chairmanship of APEC and hosted the Leaders’ and Ministerial

meetings during October 17-21 in Shanghai. Following the September 11 terrorist

attacks, APEC agreed to combat terrorism through an enhanced liberalization drive.

APEC officials also endorsed the launch of a new trade liberalization round at the

World Trade Organization. Leaders noted that they intended to adopt pro-growth

fiscal and monetary policies. In addition, they noted the importance of APEC’s work

towards more open and stronger economies. The Leaders welcomed the progress that

APEC has made in advancing Ecotech goals. In the area of e-commerce, in 2001 APEC

made progress in formulating and delivering a long-term, forward-looking strategy

for the new economy. Mexico will host APEC’s 14th Ministerial Meeting in 2002.

African Growth and Opportunity Act

The first U.S.-sub-Saharan Africa Trade and Economic Cooperation Forum was held

in Washington, D.C., during October 29-30, 2001. The Forum was hosted by the

Secretaries of State, Treasury, and Commerce, and the U.S. Trade Representative.

Trade, Foreign Affairs, and Finance Ministers from 35 AGOA-eligible sub-Saharan

African countries participated, along with representatives from African regional

organizations. The President addressed the Forum, which he established on May 16,

2001, to complement the African Growth and Opportunity Act. Delegates discussed a

broad range of issues including further measures the United States and sub-Saharan

Africa countries can jointly take to stimulate economic growth and trade, enhance

democracy and good governance, and combat HIV/AIDS. During the two-day forum,

U.S. Trade Representative Zoellick signed a U.S.-Nigerian Joint Declaration on

Electronic Commerce, and a Trade and Investment Framework Agreement (TIFA)

between the United States and the Common Market for Eastern and Southern Africa

(COMESA). By the end of 2001, 35 countries had met the requirements for eligibility

for preferential tariff treatment under AGOA.

Bilateral Trade Relations

European Union

The United States and the EU continued to address an active trade agenda in 2001. In

April, the two sides settled the longstanding dispute over the EU’s banana import

regime, and the United States lifted retaliatory duties on imports from the EU. U.S. and

EU officials also signed a Mutual Recognition Agreement covering marine safety
1-9

equipment and made progress developing guidelines for regulatory cooperation.

However, problem areas remained. The United States complained that U.S. exports to

the EU were being adversely affected by an EU moratorium on approvals for

agricultural biotechnology products and would be further limited if proposed new EU

regulations on labeling and traceability of biotech products were implemented. Also,

in possibly the most significant of the current U.S.-EU disputes, the WTO

dispute-settlement process continued throughout the year in response to an EU

complaint that U.S. tax rules governing foreign sales corporations (FSCs) are a

prohibited export subsidy. The United States repealed the FSC rules and enacted the

Extraterritorial Income Exclusion Act of 2000 (ETI), but in August 2001, the WTO found

the ETI to be WTO-incompatible, and the United States appealed the finding. Finally, at

the end of the year, the EU warned that it would respond should the United States

impose additional tariffs on imported steel in 2002 as a result of the Commission’s

affirmative determination in the section 201 global safeguard investigation.

Canada

The U.S.-Canadian bilateral trading relationship is governed in large part by a free

trade agreement, originally bilateral in nature and first signed in 1988. The

U.S.-Canada Free Trade Agreement (CFTA) was largely subsumed by the NAFTA in

1994. The bilateral phaseout of duties under CFTA/NAFTA was completed on

January 1, 1998.

The year 2001 was marked by the expiration of a bilateral agreement covering trade

in softwood lumber, negotiated in 1996 for a 5-year period. The U.S.-Canada

Softwood Lumber Agreement expired on March 31, 2001. Immediately upon

expiration, a coalition of domestic industry softwood lumber interests filed petitions

alleging injurious unfair trade practices in the form of dumping and subsidization of

Canadian softwood in the United States. While no other issue captured bilateral

attention to the same extent, other issues addressed during the year included trade in

wheat, and the elevation of an ongoing dairy products dispute with Canada to the

WTO.

Mexico

At the end of 2001, the long-standing dispute about access of Mexican trucks to U.S.

highways was all but resolved. On December 18, 2001, President Bush signed into law

a transportation spending bill containing measures that make it possible for Mexican

trucks to apply for entry into the United States. Previously, on February 6, 2001, a

NAFTA arbitration panel ruled that the United States must open its borders to Mexican

trucks, provided they comply with U.S. safety standards. Mexican trucks are expected

to begin crossing the U.S. border, once operating regulations for them are in place.

Less progress was made during 2001 in the dispute over Mexican access to the U.S.

sugar market, and U.S. access to the Mexican high-fructose corn syrup (a sweetener)

market. Mexico continued to claim that under NAFTA it is entitled to export its sugar
1-10

surplus, some 450,000 to 500,000 metric tons, to the United States, free of duty.

Meanwhile, the FY 2001/02 U.S. sugar quota limits Mexico to 137,780 metric tons. In

the case of antidumping duties imposed by Mexico on U.S. sweeteners, both the WTO

and NAFTA ruled in favor of the United States during the year. At year-end, the United

States and Mexico agreed to negotiate an integrated solution to the sugar and

sweetener issues.

Japan

Few bilateral issues existed between the United States and Japan in 2001. The major

trade discussions between the two countries focused on autos and auto parts and a

new agreement entitled “U.S.-Japan Economic Partnership for Growth.” The

negotiations on autos centered on extending the auto and auto parts agreement,

which expired at the end of 2000. Following several rounds of talks, a new

consultative group was created to handle future market access issues for autos and

auto parts. The other major bilateral topic during 2001 was the creation of the

U.S.-Japan Economic Partnership for Growth to discuss a wide range of global,

regional, and bilateral economic and trade issues.

China

Fourteen years after applying for readmission to the WTO’s predecessor, the General

Agreement on Tariffs and Trade (GATT), the People’s Republic of China completed all

bilateral and multilateral negotiations, and on December 11, 2001, became the 143rd

member of the international trading body. With China in the WTO, the United States

continues to closely monitor the U.S.-China trade relationship. This effort includes

technical assistance programs for Chinese business leaders and government trade

authorities to increase knowledge and understanding of WTO rules and commitments.

In addition, the U.S. government is using an interagency approach to measure and

ensure Chinese compliance with its many WTO commitments.

Taiwan

The WTO members formally approved an agreement on the terms of accession for the

Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu (Chinese Taipei)

on November 11, 2001, at the WTO Ministerial Conference in Doha, Qatar. Noting

that Taiwan is the 16th largest economy in the world, President Bush predicted an

expansion of world trade and economic growth, but observed that Taiwan that it

“faces challenges in implementing its WTO commitments.”4 The United States

welcomed the accession of Taiwan to the WTO, but continued to push Taiwan on

several trade-related issues, the most significant being that of IPR enforcement.

4 The White House, Office of the Press Secretary, “President Welcomes China, Taiwan into

the WTO,” press release, Nov. 11, 2001.
1-11

Korea

U.S.-Korean trade relations were again calm in 2001, reflecting the continued

relaxation of trade frictions in recent years. There was one major bilateral trade issue

involving the United States and Korea in 2001. In January, the WTO Dispute Settlement

Body (DSB) adopted the findings and recommendations with regard to Korea’s

imports of beef reported by the WTO Appellate Body in December 2000. The

appellate body findings stemmed from a dispute-settlement panel report of July 2000.

On September 10, Korea brought its beef marketing system into compliance with the

Appellate Body recommendations, ending its system of separate stores for domestic

and imported beef.

Brazil

The U.S.-Brazilian bilateral trading relationship was enhanced during 2001 with the

creation of a bilateral consultative mechanism on trade and investment. The

mechanism was created to institutionalize the bilateral trade dialogue and resolve

outstanding bilateral conflicts. The first meeting under the consultative mechanism,

held July 19-20, 2001, addressed multilateral issues such as priorities for the WTO

Doha ministerial meeting, regional issues such as the FTAA and Western Hemisphere

regional trade negotiations, and bilateral issues including Brazilian concerns about

U.S. policies with respect to trade in steel and U.S. concerns about drug patent

protection in Brazil.

Administration of U.S. Trade Laws and Regulations

The following developments in U.S. trade programs occurred during the year 2001:

H The USITC completed one investigation under the U.S. global safeguard law

(section 201) in 2001, with respect to imports of certain steel products, and

made affirmative determinations (or was equally divided in its

determinations) with respect to 16 of 33 steel product categories established

for data gathering purposes and made negative determinations with respect

to the remaining 17 steel product categories. At the end of the year, the United

States had two global safeguard measures in place, on imports of steel wire

rod and welded line pipe.

H The U.S. Department of Labor instituted 2,278 worker adjustment assistance

investigations during FY 2001, a 65 percent decline over the number instituted

in FY 2000. During FY 2001, 1,736 certifications were issued covering

200,243 workers. In addition, 1,307 petitions were filed under the U.S.

NAFTA-related transitional adjustment assistance program for workers, an

increase from the previous fiscal year. During FY 2001, 558 certifications

were issued, covering 78,974 workers. The U.S. Department of Commerce

certified 179 firms as eligible to apply for trade adjustment assistance during

FY 2001, a slight decrease from the number in FY 2000.
1-12

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

Department of Commerce, 31 new antidumping orders and six new

countervailing duty orders were issued in 2001.

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

investigations involving complex technologies, particularly in the computer

and telecommunications fields. During 2001, there were 38 active section

337 investigations and ancillary proceedings, 27 of which were instituted in

2001. The Commission concluded 13 investigations and ancillary proceedings

under section 337, including one remand relating to a previously concluded

investigation. Exclusion orders were issued in two investigations. One

investigation was terminated on the basis of a consent order and five

investigations were terminated on the basis of settlement agreements.

H The USTR initiated one new section 301 investigation covering Canadian

wheat in 2001. The USTR identified Ukraine 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 2001,

the active cases under the section 301 law concerned the EU’s banana import

regime, the practices of the Canadian Wheat Board, and intellectual property

protection in Ukraine.

H In January 2001, USTR announced the acceptance of petitions to review the

GSP status of Brazil, Pakistan, and Russia and the termination of the worker

rights review of Swaziland and the intellectual property rights review of

Moldova. Also, in January, USTR announced a review as to whether to modify

GSP duty-free treatment to certain imports from India. In June 2001, the

President proclaimed certain modifications to the GSP implementing decisions

made in regard to various reviews. In August, the President suspended

Ukraine’s GSP eligibility, in part, and announced the effective date of the

redesignation of India’s GSP eligibility for certain articles.

H As of April 23, 2002, 17 countries of sub-Saharan Africa met the

requirements and were designated as AGOA beneficiary countries.

The International Economic Environment and World Trade

in 2001

International Economic Environment

During the 1990s, the U.S. economy enjoyed one of its most prosperous periods.

Strong and rising growth in real GDP, declining and then very lower employment

rates, and a low, stable core inflation rate characterized the long expansion. Although

growth moderated in the second half of 2000, the economy remained strong, the

unemployment rate low, and the core inflation rate slow.
1-13

Several factors contributed to a deceleration in economic growth during 2000 and

2001 from the very high growth levels of preceding years: the decline in stock market

wealth, the spike in energy prices, an increase in interest rates, a decline in the

high-technology sector, and the lingering effects of preparations against the threat of

a year-2000 Y2K computer bug. Energy prices surged in 1999 and 2000, reaching

extremely high levels at the start of 2001. The economic aftermath of the terrorist

attacks in September and the subsequent precipitous decline in consumer and business

confidence late in 2001 were sufficient to tip the nation into its seventh recession since

1960.5

Consequently, economic prospects for 2001-02 for almost all regions were reduced,

reflecting a variety of factors, including the greater-than-expected impact of the

slowdown in a number of regions; a delayed recovery in the United States; weakening

growth in domestic demand, and diminished confidence in Europe; the prospects of

continued slower growth in Japan; the continued decline in information technology

spending, which affected Asia in particular; and deteriorating financing conditions for

emerging markets, especially in Latin America. Table 1-1 shows projections of

economic indicators of the United States and selected U.S. trading partners for 2001,

as well as 2002.

In the Organization for Economic Cooperation and Development (OECD) area,

several factors brought growth to a standstill by the middle of 2001, in particular, the

severe correction in the high-tech sector and the lagged impact of the rise in oil prices.

The terrorist attacks of September 11 and the associated disturbances inflicted a severe

shock to the world economy. Thus, OECD-wide output was estimated to contract

slightly in the second half of 2001, for the first time in 20 years, and was projected to

remain very weak in the first half of 2002.6

In response to the terrorist attacks and subsequent economic contractions, many

countries, especially the United States, have eased macroeconomic policies. This

easing, along with the gradual abatement of oil prices and of other shocks that have

contributed to the slowdown, may help support economic activity and confidence in the

future. However, substantial uncertainties and risks persist. The terrorist attacks have

also increased uncertainty and the challenges facing policymakers regarding how to

best limit these downside risks while promoting an orderly resolution of the imbalances

in the global economy.

In 2001, global growth was projected by the International Monetary Fund (IMF) at 2.4

percent and is expected to remain at about that level in 2002. The volume of world

trade in goods and services was projected to grow by 1.0 percent in 2001 and by 2.2

percent in 2002 following a growth rate of 12.4 percent in 2000. Among the

advanced economies, the IMF projects growth in the United States at 1.0 percent in

2001, and 0.7 percent in 2002, with activity expected to begin to pick up modestly as

the effects of previous policy easing take hold. In contrast, the Council of Economic

5 Economic Report of the President, Feb. 2002, pp. 36-37.

6 On average, real GDP in the OECD area could grow by 1 percent in 2002. Area-wide

unemployment is expected to increase well into 2002, before retreating slightly. Inflation is

projected to remain low in part due to moderate oil prices. OECD Economic Outlook,

Preliminary Edition, 70, Nov. 2001, p. 5.
Table 1-1

Comparative economic indicators of the United States and specified major trading partners, projections, 2001-

Real GDP Inflation rates1 Unemployment rates2 Governments’ budget balances3 Merchandise trade balances Cur

bala

Country 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 

Percent change from previous period Percent of GDP Billion dollars 

Major traders:

United States . . . . . . . . . 1.1 0.7 2.1 1.2 4.8 6.2 0.6 -1.1 –466.6 -409.2 Canada . . . . . . . . . . . . . 1.4 0.8 2.6 1.3 7.3 7.8 2.8 2.1 48.3 40.4 Japan . . . . . . . . . . . . . . -0.7 -1.0 -1.6 -1.4 5.0 5.5 -6.4 -6.7 73.8 98.9 Germany . . . . . . . . . . . . 0.7 1.0 1.4 1.1 7.5 8.1 -2.5 -2.5 77.3 86.5 United Kingdom . . . . . . 2.3 1.7 2.4 2.5 5.1 5.3 1.1 0.0 -50.2 -53.5 France . . . . . . . . . . . . . . 2.0 1.6 1.7 1.8 8.9 9.4 -1.5 -1.8 3.4 7.6 Italy . . . . . . . . . . . . . . . . 1.8 1.2 3.0 2.8 10.0 10.2 -1.4 -1.1 18.1 24.0 European Union . . . . . . 1.5 1.2 2.7 1.4 7.8 8.1 -0.7 -1.0 68.7 88.7 Mexico . . . . . . . . . . . . . 0.0 1.5 6.5 5.0 2.5 2.6 N/A N/A -9.8 -12.0 

Total OECD . . . . . . . . 1.0 1.0 2.9 2.3 6.5 7.2 .5 .4 -235.2 -182.4 

China . . . . . . . . . . . . . . 7.4 7.2 1.0 1.4 NA NA -2.4 -2.3 NA NA Hong Kong . . . . . . . . . . -0.3 1.0 -1.5 - 5.1 5.9 N/A N/A -20.0 20.5 Malaysia . . . . . . . . . . . . 0.3 2.5 1.5 1.8 NA NA NA NA NA NA Republic of Korea . . . . . 2.6 3.2 4.3 2.0 3.9 4.3 5.7 5.1 13.8 15.5 Singapore . . . . . . . . . . . –2.9 1.2 1.0 1.4 4.5 4.2 N/A N/A NA NA 

Taiwan . . . . . . . . . . . . . . -2.2 0.7 -0.1 0.3 5.1 5.0 n/A N/A 9.8 14.4 

Thailand . . . . . . . . . . . . 1.5 2.0 1.7 1.1 NA NA NA NA NA NA 

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.

Note.–2001 and 2002 data are projections of the IMF and OECD; however, GDP, inflation, unemployment rates, and merchandise trade balance 

States in 2001 are actual. N/A= not available.Source: OECD, World Economic Outlook, vol. 68, Dec. 2001, Annex table 1; IMF, World Economic Outlook, Dec. 2001; and official statistics of th

Department of Commerce.
1-15

Advisers forecasts growth rates of real GDP at -0.5 percent in 2001 and 2.7 percent in

2002, consumer prices to rise by 2.0 percent in 2001, and by 2.4 percent in 2002, and

the unemployment rate to rise to 4.8 percent in 2001 and 5.9 percent in 2002.7 More

recently released GDP figures by the U.S. Department of Commerce show the GDP

annual growth rate for 2001 at 1.2 percent.

The Council of Economic Advisers expects that the U.S. economy will recover in 2002.

The economy continues to display characteristics favorable to long-term growth:

productivity growth remains strong, and inflation remains low and stable. Real GDP is

expected to pick up early in 2002. The pace is expected to be slow initially, followed by

an acceleration thereafter; over the four quarters of 2002 real GDP is expected to

grow at 2.7 percent.8 The outlook for other industrial countries has also weakened

more significantly.9 In the European Union area, the IMF projected growth at 1.7

percent in 2001, and at 1.3 percent in 2002, driven by a sharp weakening in domestic

demand growth, particularly in Germany, and the greater than expected impact of the

global slowdown. For Japan, GDP is projected by the IMF to decline by 0.4 percent in

2001 and by 1.0 percent in 2002. Defining recession as two quarters of negative real

GDP growth, Japan is now likely experiencing its fourth recession of the past decade.

Growth prospects for most developing and transition economies have also

deteriorated. Growth has been markedly down in the Western Hemisphere, where

activity has been adversely affected by the renewed financial difficulties in Argentina,

as well as political uncertainties and other shocks, including the energy crisis in Brazil.

Capital inflows to most countries, except Mexico, have also slowed, a recent concern,

given the region’s large external financing requirements. In emerging Asia, growth in

China remains resilient, but many countries have been hard hit by slowing global

growth and the downturn in the electronic cycle, with the impact exacerbated by

intra-regional trade linkages and developments in Japan’s economy.

The IMF baseline projections, of U.S. GDP growth of 1.0 percent for the year 2001 as a

whole, and 0.7 percent in 2002 could–if accompanied by improved growth

performance in other major countries and an orderly depreciation of the U.S.

dollar–be consistent with a gradual reduction in the current account deficit to more

sustainable levels, accompanied by a steady improvement in the household savings

ratio. However, there are also significant downside risks, generally stemming from

interrelated uncertainties about the extent of overinvestment in the economy, the

medium-term outlook for productivity growth, and the robustness of household

balance sheets, confidence, and consumer spending. The September 11 terrorist

attacks will have a short-term effect on activity, and clearly have exacerbated risks

with respect to confidence and consumer spending.

U.S. macroeconomic policies have been significantly eased. Since the beginning of

2001, the Federal Reserve has reduced interest rates by 4.0 percent, accompanied by

other measures to ensure adequate liquidity in financial markets for settlement of

financial transactions. Fiscal policy has also been eased, initially by the

7 Economic Report of the President, Feb. 2002, p. 53, table 1-1.

8 Ibid., pp. 52-53.

9 IMF, Prospects and Policy Challenges, p.6.
1-16

implementation of a tax cut package in mid-year and by the recent approval of an

emergency $40 billion spending package following the terrorist attacks.

The macroeconomic stimuli is expected to support activity in the coming period,

allowing demand to recover modestly by the end of the year. However, confidence has

been further shaken by the terrorist attacks, exacerbating risks that the pace of

recovery may be slowed by lagged effects on consumption due to the decline in equity

markets valuations over the last year. These effects could possibly be offset in part by

rising house prices–as well as the need to work off past overinvestment in the

technology sector.

As in most other industrial countries, inflation has risen in the United States, mainly due

to higher energy costs, though the personal consumption deflator has remained

relatively muted. At the same time, the combination of weakening productivity as

activity slowed and a pickup in employment costs have led to a sharp rise in unit labor

costs since mid 2000. According to the U.S. Bureau of Labor Statistics, productivity, on

an annual average basis, rose by 1.8 percent in both the business and nonfarm

business sectors in 2001. This was the smallest annual productivity gain since 1995.10

With energy prices declining during 2001, product markets remaining highly

competitive, and with activity slowing, the risks of sustained inflationary pressures

appear relatively modest at the present juncture. Such pressures could become more of

a concern, however, if underlying productivity growth–which has played a key role in

absorbing wage increases in recent years–were to slow sharply, especially if

accompanied by sharp downward adjustments in the U.S. dollar which would boost

import prices.11

During the third quarter of 2001, the dollar depreciated 7.3 percent against the euro,

and 4.1 percent against the yen. On a trade-weighted basis, the dollar ended the

quarter 2.6 percent lower. Shifting expectations about the pace of U.S. economic

recovery influenced changes in the exchange value of the dollar. The terrorist attack

on September 11 heightened the pre- existing concerns about the weakness of the U.S.

economy and lent further momentum to the general trends that prevailed earlier in the

quarter. U.S. monetary authorities did not intervene in the foreign exchange markets

during this quarter. After the terrorist attacks, and to provide dollar liquidity, the

Federal Reserve established thirty-day reciprocal swap arrangements with the

European Central Bank (ECB) and the Bank of England and temporarily augmented its

existing swap facility with the Bank of Canada.12

Canada

In Canada economic growth was projected by the IMF to be as low as 1.4 percent in

2001 and 0.8 percent in 2002, with the outlook largely reflecting Canada’s close trade

10 U.S. Bureau of Labor Statistics, USDL 02-64, Feb. 6, 2002.

11 IMF, World Economic Outlook, Oct. and Dec. 2001.

12 Federal Reserve Bulletin, Dec. 2001, Treasury and Federal Reserve Foreign Exchange

Operations.
1-17

and financial linkages with the United States. Household spending has remained

relatively robust, underpinned by tax cuts earlier in the year and generally firm labor

market conditions, while business investment, especially in machinery and equipment,

has declined sharply. Imports have also fallen, more than offsetting a decline in

exports and propelling the current account position to a record surplus. In addition,

with Canada’s fiscal surplus remaining the largest among the G-7 countries, the

automatic stabilizers should work fully during the current slowdown. Economic activity

is expected to increase in 2002 supported by a strengthening in the United States and

easier monetary conditions, following the Bank of Canada’s lowering official interest

rates by 3.5 percentage points in 2001.13

Europe

In the euro area,14 the slowing in growth that began in the second half of 2000, most

markedly in Germany, has continued and spread more widely in 2001. The slowdown

appears to have been driven by weakening domestic demand growth, resulting in part

from higher food and oil prices, which have squeezed real incomes; downturns in

equity markets and the technology sector, in particular, communications; and, in some

countries, weakening employment growth. On the external side, exports of goods

have slowed in response to weaker global demand both in the United States and Asia,

and import growth has also turned down sharply. The euro weakened in the first half of

2001 and moved close to a record low against the U.S. dollar, before firming since

July. The reasons for the euro’s persistent weakness seems to be differences in

economic performance in the euro area and the United States. Portfolio adjustments as

a result of the advent of the euro have played an important role.

On the fiscal side, the structural balance in the euro area is expected to remain broadly

constant, with fiscal stimulus in some countries offset by tightening elsewhere. Actual

fiscal balances are expected to weaken reflecting slowing growth.

The relatively low growth performance of the euro area, with the unemployment rates

seemingly stabilizing at about the 8 percent mark, points to the need to boost

productive potential through a reinvigorating of the structural reform effort. Although

important reforms have been made, a substantial unfinished agenda remains,

including reforming labor markets, especially tax and benefit systems, and linking

wages more closely to productivity; promoting effective integration of EU capital

markets, together with strengthening mechanisms for financial crisis management;

and ensuing effective competition.15

Some divergences in economic developments in individual euro-area economies

underlie these trends. Among the three largest economies (United States, Japan, and

Germany), gross fixed investment has weakened sharply, particularly in Germany,

13 IMF, World Economic Outlook, Oct. and Dec. 2001

14 The euro area consists of Austria, Belgium, Finland, France, Germany, Greece, Ireland,

Italy, Luxembourg, Netherlands, Portugal and Spain.

15 Ibid., pp. 25-27.
1-18

where construction activity has fallen off significantly. In Italy, a buildup of inventories

led to a relatively strong growth in the first quarter. The French economy appeared to

be holding up relatively well against the global slowdown, supported by tax cuts and

ongoing employment growth. However, with consumer and business confidence

having fallen significantly, and unemployment recently moving up, the pace of activity

has weakened and is expected to be similar to Germany and Italy during the second

half of 2001 and 2002. Against this background, euro-area GDP growth is projected

by the IMF to average 1.5 percent in 2001 and 1.2 percent in 2002. But the downside

risks have been increased by the September 11 terrorist attack, particularly if the global

recovery is slower than expected or consumer confidence continues to weaken. The oil

and food price shocks that have dampened domestic demand have also led to a rise in

overall inflation.16 Core inflation rose 2.7 percent in 2001. However, some of the

forces driving inflation, notably higher energy and food prices, appeared to be

dissipating, and with demand pressures also easing, inflation is expected to fall below

2.0 percent to 1.4 percent in 2002. The scope of monetary policy flexibility will also

depend on prospects of wage moderation as well as developments in exchange rates.

Latin America

In Latin America, following a strong recovery in 2000, GDP growth was projected by

the IMF to decline to 1.7 percent in 2001. Growth projections have been revised

downwards for most countries, reflecting the increasing impact of the global economic

slowdown, particularly for Mexico and Chile, the economic difficulties in Argentina,

which have adversely affected a number of neighboring countries, and political

uncertainties and the energy crisis in Brazil. Reflecting these developments, capital

flows to the region weakened in the first half of the year, and with the important

exception of the Mexican peso, most regional currencies were under downward

pressures. As the crisis deepened in Argentina from early June 1991, accompanied by

signs of contagion within the region, these pressures have significantly increased.

Prospects remain very fragile, particularly following the September 11 terrorist attacks

on the United States and the associated possibility of increasing capital flight to quality

in financial markets.

In many Latin American countries the central vulnerability remains high

external-financing requirements, typically linked to a large public sector deficit and

high public debt. With a substantial share of public debt denominated in foreign

exchange, and in some cases a considerable proportion being short term,

depreciating exchange rates and higher interest rates, along with slowing growth,

have put additional pressures on fiscal positions across the region. Given the need to

maintain external confidence, most countries have little scope to allow easing of

monetary and/or fiscal policy. Some will need to tighten the underlying stance of fiscal

policy to avoid adverse debt dynamics. At the same time, with exchange rates

16 IMF World Economic Outlook, Oct. 2001, pp. 22-25.
1-19

weakening, the scope for monetary easing is in several cases also constrained. This

will add to pressures on activity and exacerbate the already high level of

unemployment across the region.

Developments in the region have been overshadowed by events in Argentina.

Following the crisis in November 2000, economic conditions temporarily improved,

but sentiments deteriorated sharply once again in March 2001. A further weakening

of the fiscal position, political turmoil, and renewed concerns about Argentina’s high

external-financing requirement also affected neighboring countries. The deteriorating

situation in the region, and particularly the depreciation of the Brazilian real, in turn

adversely affected Argentina. In response, the Argentinian authorities further

strengthened their program through revenue and expenditure measures designed to

bring the fiscal deficit back on track along with a series of initiatives to boost

productivity and competition. In late June, a package of tax reforms and trade

measures resulted in a modest effective depreciation of the peso for non-energy trade

and linked the value of the peso for non-energy trade to a basket of the U.S. dollar and

the euro.

Following a strong recovery from the 1998-99 recession, Brazil was buffeted by a

series of adverse shocks in the first half of 2001, including contagion from Argentina,

political uncertainties, and the emergence of a serious energy crisis requiring stringent

electricity rationing. Output fell in the second quarter. External confidence also

weakened slowing capital inflows, and the real depreciated steadily, putting upward

pressures on inflation. In response, the authorities raised interest rates and undertook

additional foreign borrowing to boost reserves and support the currency. As these

pressures increased and the real plummeted to new lows against the U.S. dollar, the

authorities further tightened fiscal and monetary policies.

In Mexico, the possibility of further weakening continues because of the economy’s

vulnerability to further weakening of activity in the United States. Through the first three

quarters of 2000, with growth running over 7.0 percent, the central policy concern

was to avoid overheating. However, GDP and domestic demand growth have since

weakened markedly as the growth of exports to the United States, which accounts for

25 percent of GDP, declined sharply. With GDP having fallen in the first two quarters

of 2001, output growth is projected by the IMF to decline to under 1.0 percent for the

year as a whole, recovering thereafter in tandem with activity in the United States. The

current account deficit is expected to decline to 3.0 percent of GDP in 2001, but capital

inflows remain strong–reflecting the impact of the North American Free Trade

Agreement (NAFTA) on direct investment. Correspondingly, the peso appreciated

significantly and inflation pressures declined, providing room for monetary policy

easing.17

In Chile, growth has slowed and the outlook remains vulnerable to further slowing in

the global economy. Concerns about external financing are lower than elsewhere in

17 Ibid., pp. 30-31.
1-20

the region. The authorities have lowered interest rates, and the new practice of

targeting the structural fiscal balance will allow the automatic stabilizers to function.

However, the recent depreciation of the peso may constrain monetary policy easing in

the future.

In Ecuador, growth is expected to strengthen, aided by the construction of a new oil

pipeline; and inflation has continued to decline as dollarization takes hold. Further

action, however, is needed to address banking sector weaknesses, which remains an

important source of vulnerability.

In Venezuela, growth has also remained well sustained, but has been heavily

dependent on rapid public expenditure growth, financed by buoyant oil revenues.

With weak private investment and business confidence, and large capital outflows

persisting, the economy remains vulnerable to lower oil prices.

In Colombia, growth is expected to weaken owing to lower coffee prices and

weaker-than- expected investment. The stance of macroeconomic policies appears

generally prudent, but much continues to depend on progress with the peace process

and maintaining the pace of structural reform.

In Peru, growth has slowed sharply, mainly reflecting political uncertainties. The key

challenge facing the government is to restore confidence in a difficult external

environment, through prudent macroeconomic policies and accelerated reforms,

notably privatization.

Asia

In Asia, the outlook in 2001 continued to deteriorate. According to the IMF, from

mid-2000 industrial production and exports slowed sharply, driven by the global

slowdown, especially in the high technology sector, and more recently by weakening

growth in Europe and Japan.18 Following earlier shocks, including higher oil prices,

political uncertainties, and in some cases weakening confidence as a result of lagging

structural reforms, growth prospects have declined further for most of the newly

industrialized countries and members of the Association of South East Asian Nations

(ASEAN). These shocks have been accompanied by a decline in stock markets, capital

outflows, and periodic pressures on exchange rates.

Looking forward, the IMF projects growth in most Asian countries to pick up in 2002,

supported by an upturn in global activity and in the electronics cycle; and it is

encouraging that foreign direct investment commitments continue to hold up well.

However, the outlook has important risks, particularly given the increased global

economic and financial market uncertainty following September 11, a lagging

recovery in the technology sector, and the weakening outlook for Japan.

18 Ibid., p. 31.
1-21

The economic slowdown has continued to be steepest among the newly industrialized

economies: Malaysia, Hong-Kong SAR, Singapore, Korea, and Taiwan. Export

growth in all has turned down sharply accompanied by a rapid decline in industrial

production. These developments have been exacerbated by slowing

domestic-demand growth driven by declining consumer and business confidence, and

in some cases linked to banking and corporate sector weakness.

China is expected to continue growing strongly in 2001, in part because total exports,

and especially exports of high technology goods, comprise a much lower share in GDP

than in most other emerging Asian economies. Despite the slowdown in exports in

2001, overall activity remained strong in the first half of 2001, led by buoyant private

consumption and strong public investment. 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, running at around $40 billion a year since 1996. The key

economic challenge, which has become more urgent with China’s entry to 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.19

Russia and the Commonwealth of Independent States

Following the recession induced by the Russian crisis in 1998, the Commonwealth of

Independent States (CIS) experienced a strong recovery in 1999-2000. In Russia the

combination of higher oil prices and sharply depreciated exchange rates led to a

surge in GDP growth to 8.6 percent in 2000 accompanied by the emergence of large

fiscal and balance of payments surpluses. Despite some weakening in oil prices from

their late 2000 peaks and continued high capital outflows, the external current

account and overall balance of payments are expected to remain in strong surplus.

Inflation is running ahead, suggesting that monetary policy should be tightened. GDP

is projected to grow by 4.0 percent in 2001 and also in 2002.20

U.S. Merchandise Trade in 2001

In 2001, the United States ranked as the world’s largest merchandise exporter and

importer, followed by Germany and Japan.21 U.S. merchandise exports (based on

U.S. Census data) were $666.0 billion in 2001; compared with total exports of $712.3

billion in 2000; merchandise imports were $1,132.6 billion down from $1,205.3 billion

in 2000. The U.S. merchandise trade deficit with the world was $466.6 billion in 2001,

down from $493.0 billion in 2000. The majority of U.S. exports consisted of

manufactured goods, which accounted for 70.9 percent of total U.S. exports in 2001,

followed by chemicals (12.0 percent), food and beverages (6.8 percent), fuel and raw

19 Ibid., p. 33.

20 Ibid., pp. 39-40.

21 WTO Annual Report 2002, Chapter II-III.1, May 2002, appendix table.
1-22

materials (6.2 percent), and all other goods (4.1 percent). The majority of U.S. imports

consisted of manufactured goods, which accounted for 72.3 percent of total U.S.

imports, followed by fuel and raw materials (11.9 percent), chemicals (7.2 percent),

and food and beverages (4.1 percent). The category “all other goods” accounted for

4.5 percent of total U.S. imports (see figure 1-2).

Figure 1-3 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 2001, U.S. trade with NAFTA countries

accounted for about 32.4 percent of total U.S. exports and imports. Of the $466.6

billion total U.S. trade deficit in 2001, NAFTA accounted for $112.2 billion, of which

Canada accounted for $72.2 billion and Mexico accounted for $40.0 billion.

The U.S. trade deficit with China was $84.1 billion followed by Japan at $72.6 billion,

the EU at $71.6 billion, Taiwan at $16.6 billion, and Korea at $14.0 billion. The U.S.

trade deficit with Japan and China combined totaled $156.7 billion or about 33.6

percent of the total U.S. trade deficit on goods.

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 current transfers) decreased to $417.1

billion in 2001 from $444.7 billion in 2000 according to preliminary estimates of the

Bureau of Economic Analysis of the U.S. Department of Commerce (see table 1-2). The

strengthening of domestic demand for merchandise imports due to relatively higher

rates of U.S. economic growth led to a widening of the current account deficit in

2001.22 The deficits on merchandise trade and investment income were partially offset

by the surplus on services. The U.S. surplus on services trade increased very slightly to

$78.8 billion in 2001 from $76.5 billion in 2000. The U.S. deficit on goods and services

decreased to $347.8 billion in 2001 from $375.5 billion in 2000. The U.S. deficit on

income from foreign investment grew in 2001 to $19.1 billion from $14.8 billion in

2000 as payments on foreign assets in the United States grew more than receipts from

U.S. assets abroad. Net inflows of foreign capital into the United States increased to

$455.9 billion in 2001 from $443.2 billion in 2000.

22 U.S. Department of Commerce, Bureau of Economic Analysis, U.S. International

Transactions, January 2002.
1-23

Other

Figure 1-2

U.S. merchandise trade with the world, by product sectors, 2001

U.S. Exports -- $660.0 billion

Note.—Because of rounding, figures may not add up to totals shown.

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

Manufactures

Food

Chemicals

Other

Food

U.S. Imports -- $1,132.6 billion

Fuel/raw materials

$27.5 (4.1%)

Chemicals

Manufactures Fuel/raw materials

(Billion dollars)

$471.5 (70.9%) $41.5 (6.2%)

$45.3 (6.8%)

$80.2 (12.0%)

$819.0 (72.3%)

$50.7 (4.5%)

$135.0 (11.9%)

$46.5 (4.1%)

$81.4 (7.2%)
1-24

Figure 1-3

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

partners, 2001

--500

--300

--100

100

300

500

700

900

1100

1300

Canada EU 15 Japan Mexico China Taiwan Korea Brazil World

Major trading partners

Billion dollars

Canada $144.6 $216.8 $-72.2

EU (15) 147.3 218.9 -71.6

Japan 53.5 126.1 -72.6

Mexico 90.5 130.5 -40.0

China 18.0 102.1 -84.1

Taiwan 16.6 33.3 -16.6

Korea 20.9 34.9 -14.0

Brazil 14.7 14.4 0.2

World 666.0 1,132.6 -466.6

Exports Imports Trade balance

Exports

Imports

Trade Balance

Billions

Note.—Because of rounding, figures may not add up to totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce.
1-25

Table 1-2

Summary of U.S. international transactions, 2000-01

(Billion dollars)

Item 2000 2001

Merchandise exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 772.2 720.8

Merchandise imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -1224.4 -1147.5

Balance on merchandise trade . . . . . . . . . . . . . . . . . . . . . . . . -452.2 -426.6

Services exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293.5 283.8

Services imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -217.0 -205.0

Balance on services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.5 78.8

Balance on goods and services . . . . . . . . . . . . . . . . . . . . . . . . -375.7 -347.8

Income receipts on U.S. assets abroad . . . . . . . . . . . . . . . . . . 352.9 293.8

Income payments on foreign assets in the United States . . . . . -367.7 -312.9

Balance on investment income . . . . . . . . . . . . . . . . . . . . . . . . . -14.8 -19.1

Balance on goods, services, and income . . . . . . . . . . . . . . . . . -390.5 -366.9

Unilateral transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -54.1 -50.5

Balance on current account . . . . . . . . . . . . . . . . . . . . . . . . . . . -444.7 -417.4

U.S. assets abroad, net, outflow (-) . . . . . . . . . . . . . . . . . . . . . -581.0 -439.6

Foreign assets in the U.S., net, inflow (+) . . . . . . . . . . . . . . . . +1024.2 +895.5

Net capital inflows (+), outflows (-) . . . . . . . . . . . . . . . . . . . . . +443.2 +455.9

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

2001, BEA 02-07. 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.

2-1

CHAPTER 2

Selected Trade Developments in the WTO

and OECD

This chapter reviews selected activities of the World Trade Organization (WTO) and

the Organization for Economic Cooperation and Development (OECD) in 2001. The

WTO is the principal multilateral body overseeing the negotiation and implementation

of, as well as settlement of disputes regarding, international trade agreements. The

OECD is the primary forum for the discussion of common economic and social issues

faced by the 30 leading industrialized democracies of Asia, Europe, and North

America.

World Trade Organization

Fourth Ministerial Conference

The Fourth Ministerial Conference of the World Trade Organization (WTO) was held

in Doha, Qatar, from November 9 to 14, 2001. At Doha, trade ministers adopted a

work agenda that expanded the scope of multilateral trade negotiations already

underway, and expanded the WTO work program to include issues that could be

incorporated into the ongoing trade negotiations at a later date, if so decided by

members.

Negotiations have been underway since early 2000 on trade in agriculture, services,

and on certain intellectual property rights,1 as mandated by provisions embedded in

the 1986-93 Uruguay Round Agreements.2 Ministers at the Doha conference in

November 2001 met to decide whether additional subjects might be included in these

negotiations at this time, so as to broaden the scope among negotiators for making

concessions and commitments.

1 Mandated negotiations on intellectual property rights concern geographical indications for wines

and spirits. Geographical indications identify a good with a given quality, reputation, or other

characteristic that is essentially attributable to its geographical origin in a particular region, country, or

locality. Although associated closely with agriculture, the fundamental concept of geographical

indications concerns intellectual property rights and, as a consequence, the negotiations are being held

under the Trade-Related Aspects of Intellectual Property Rights (TRIPs) Agreement. Whereas the current

negotiations involve geographical indications for wines and spirits, a number of participants would like to

extend these negotiations to other products.

2 These embedded provisions have been called collectively the Uruguay Round Agreements’

“built-in agenda.”
2-2

The result at Doha saw ministers round out negotiations underway for agriculture and

services with the inclusion of market-access negotiations for industrial goods.

Negotiations on new subjects–such as investment and competition policy–were

deferred; working groups examining these topics are to continue, with ministers at the

WTO Fifth Ministerial Conference (currently scheduled for September 10-14, 2003 in

Cancun, Mexico) expected to decide whether or not to include them as new subjects in

the Doha negotiations. (See figure 2-1 for the titles and contents of the WTO Doha

Ministerial Declaration and other texts.)

Implementation Issues

A primary focus of ministers at the Fourth Ministerial Conference centered on

commitments made as part of the Uruguay Round Agreements that had not been

implemented by their January 1, 2000, deadline. Discussions regarding lagging

implementation have been underway for several years. Developed country members

have focused on the failure of a number of developing country members to implement

their commitments under the WTO agreements largely concerning trade-related

investment measures, customs valuation rules, and trade-related aspects of intellectual

property rights.

Figure 2-1

Titles and contents of the WTO Doha Ministerial Declaration and related

texts

MINISTERIAL DECLARATION

Adopted on 14 November 2001

WORK PROGRAMME

Implementation-Related Issues and Concerns

Agriculture

Services

Market Access for Non-agricultural Products

Trade-Related Aspects of Intellectual Property Rights

Relationship between Trade and Investment

Interaction between Trade and Competition Policy

Transparency in Government Procurement

Trade Facilitation

WTO Rules

Dispute Settlement Understanding

Trade and Environment

Electronic Commerce

Small Economies

Trade, Debt and Finance

Trade and Transfer of Technology

Technical Cooperation and Capacity Building

Least-Developed Countries

Special and Differential Treatment

ORGANIZATION AND MANAGEMENT OF THE WORK PROGRAMME

DECLARATION ON THE TRIPS AGREEMENT AND PUBLIC HEALTH

Adopted on 14 November 2001

DECISION ON IMPLEMENTATION-RELATED ISSUES AND CONCERNS
2-3

A number of developing country members have responded that developed country

members have failed to implement or honor the Uruguay Round Agreements’

provisions that afford special and differential treatment to developing countries. A

number of these countries have expressed general dissatisfaction that these

agreements are skewed in favor of the developed countries, and particular

dissatisfaction has been cited regarding the implementation of the specific Uruguay

Round Agreements on textiles, antidumping, subsidies, trade-related investment

measures, and trade-related aspects of intellectual property, among others.

Negotiations Already Underway

Agriculture

Agriculture negotiations began in March 2000, as mandated under the WTO

Agreement on Agriculture, Article 20 (Continuation of the Reform Process).

Participants agreed to structure negotiations through special sessions of the WTO

Committee on Agriculture, and were set out in two phases. In Phase One, participants

would present proposals to improve the current rules on agriculture, either

comprehensive proposals or on particular aspects of agriculture. In Phase Two, they

would negotiate an agreement that incorporates these improvements into the current

rules and commitments on agriculture.

Phase One agriculture negotiations

During Phase One from March 2000 to March 2001, special sessions were held

approximately quarterly, fielding approximately 44 proposals from 125 countries.3

At the review session in March 2001 marking the end of Phase One negotiations, a

stocktaking was held of progress to date and a timetable was set for Phase Two

negotiations from May 2001 to March 2002.

Phase Two agriculture negotiations

Phase Two sessions were held approximately bimonthly, taking up topics raised under

Phase One in greater technical detail so as to develop specific language and

proposals that could lead to an agreement on improved rules and commitments in

agriculture.4 Discussions in 2001 focused on a wide variety of subjects: consumer

information and labeling; domestic support subsidies defined under the agreement;5

environment; export credits; export subsidies; export taxes and restrictions; food aid;

3 Phase One agriculture meetings were held in March, June, September, and November 2000, and

in February and March 2001.

4 Phase Two agriculture meetings were informal meetings held in May, July, September, and

December 2001, and March 2002; formal committee sessions also followed the latter three meetings.

5 Categories known as “amber,” “green,” and “blue box” supports.
2-4

food safety; food security; geographical indications; rural development; individual

agricultural sector initiatives; the special agricultural safeguard; state trading

enterprises; tariff quota administration; tariffs; and trade preferences.6

In September 2001, the committee also settled three outstanding implementation issues

regarding agriculture that concerned developing countries’ difficulties in carrying out

their existing WTO commitments on agriculture: (1) the committee agreed to examine

the issues of export credits, export-credit guarantees, and insurance programs, and

report its findings to the WTO General Council in late 2002;7 (2) it agreed to establish

an interagency panel of financial and commodity experts to explore ways to improve

access to multilateral programs and facilities that can assist least developed countries

and WTO net food-importing developing countries which experience short-term

difficulties financing commercial imports of basic foodstuffs; and (3) it agreed that

tariff quotas should be administered transparently and without discrimination.

Future schedule

In November 2001, the Doha declaration centered on five areas that ministers

considered the main focal points of the agriculture negotiations: (1) market access, (2)

export subsidies, (3) domestic supports, (4) special and differential treatment for

developing countries,8 and (5) nontrade concerns as expressed in the WTO

Agreement on Agriculture. The declaration calls for participants to establish by March

31, 2003, the “modalities” (that is, structure and rules for negotiations) that will allow

for additional commitments in these areas under the agriculture agreement.

Participants are to submit comprehensive draft schedules subsequently, based on

these negotiating rules, by the 2003 ministerial conference.9

Services

Services negotiations began in February 2000, mandated under the WTO General

Agreement on Trade in Services (GATS), Part IV (Progressive Liberalization), Article

XIX (Negotiation of Specific Commitments). Participants met initially in February 2000

and agreed to organize negotiations through special sessions of the WTO Council on

Trade in Services, divided into two phases.

6 WTO, Committee on Agriculture – Special Session, Seventh Special Session of the Committee on

Agriculture, G/AG/NG/7, Mar. 29, 2001, found at Internet address http://docsonline.wto.org,

retrieved on Mar. 1, 2002.

7 In a separate forum, negotiations have been underway recently in the Organization for Economic

Cooperation and Development (OECD) regarding export credits and guarantee programs, both

agricultural and industrial.

8 To be included as an integral part of concessions and commitments undertaken through national

schedules.

9 World Trade Organization, Ministerial Declaration – Adopted on 14 November 2001,

WT/MIN(01)/DEC/1, Nov. 20, 2001.
2-5

Phase One services negotiations

In Phase One, participants held special sessions from November 2000 to March 2001

that structured negotiations, adopted negotiating guidelines and procedures, and

considered negotiating proposals submitted. Phase One concluded with a review

meeting on March 28-30, 2001, that looked at progress to date, and adopted rules for

negotiations. At the March 2001 meeting, the Council for Trade in Services adopted

the Guidelines and Procedures for the Negotiations on Trade in Services10 that

highlight several principles that are to underpin the services negotiations:

H the negotiations will recognize the right of members to regulate their service

sectors;

H the negotiations will provide appropriate flexibility for developing country

members, such as accepting their opening fewer sectors and liberalizing

fewer transactions;

H the liberalization of services markets that emerges is to take account of

national policy objectives, and the level of economic development of

individual members; and

H the negotiations will recognize the right to specify which service sectors will be

offered for liberalization.

Phase Two services negotiations

Phase Two negotiations from March 2001 to March 2002 covered in greater technical

detail specific proposals raised during Phase One.11 These 2001-2002 discussions

focused on:12

H horizontal issues that affect all service sectors, involving: GATS Article IV

(Increasing Participation of Developing Countries), GATS Article VII

(Recognition), the treatment of small- and medium-sized enterprises as

service suppliers, the transparency of domestic regulations on services, and

classification issues involving services;

H vertical issues that affect individual service sectors, involving: business,

communication, construction, distribution, educational, energy, environmental, financial, tourist, recreational, and transport services; and

H additional subjects and proposals, involving: GATS Annex on Article II

Exemptions concerning most-favored-nation (MFN) exemptions taken to

shelter particular service sectors from the agreement, GATS Annex on the

Movement of Natural Persons Supplying Services under the Agreement, a

10WTO, Council for Trade in Services, “Guidelines and Procedures for the Negotiations on Trade in

Services – Adopted by the Special Session of the Council for Trade in Services on 28 March 2001,”

S/L/93, Mar. 29, 2001, found at Internet address http://docsonline.wto.org, retrieved Feb. 15, 2002.

11 Participants held a review session in March 2002 to gauge progress made during Phase Two.

12 WTO, “Report (2001) of the Special Session of the Council for Trade in Services to the General

Council,” S/CSS/8, Oct. 11, 2001, found at Internet address http://docsonline.wto.org, retrieved

Feb. 15, 2002.
2-6

proposal for a GATS annex on tourism services, an economic needs test for

the four supply modes under the GATS, an initial consideration of the

“assessment of trade in services” required by the negotiations under GATS

Article XIX, and how to treat autonomous liberalization already undertaken

concerning trade in services.

Future schedule

The Doha Ministerial Declaration calls for participants’ initial requests for concessions

and commitments regarding trade in services to be submitted by June 30, 2002. The

declaration calls for participants’ initial offers of concessions and commitments to be

submitted by March 31, 2003.13

Intellectual Property Rights

As part of the 1986-93 Uruguay Round Agreements,WTO members agreed under the

WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (“TRIPs

Agreement”) to enter into negotiations aimed at increasing the protection of individual

geographical indications. TRIPs Article 23 (Additional Protection for Geographical

Indications for Wines and Spirits) contains provisions to protect geographical

indications involving wines and spirits under the TRIPs Agreement, and TRIPs Article 24

(International Negotiations: Exceptions) contains provisions to start negotiations to

increase the protection set out in Article 23.

At Doha in November 2001, members agreed to negotiate a multilateral system of

notification and registration for geographical indications for wines and spirits by the

2003 ministerial conference, which would complete work mandated under TRIPs

Article 24 as part of the Uruguay Round Agreements’ built-in agenda. In the

declaration, ministers acknowledged that a number of members–many of them

transition economies in Central Europe–would like to see the mandated negotiations to

establish protection for wine and spirits through the use of geographical indications

extended to additional products.

Members also pointed out in the Doha declaration that they would like the TRIPs

Agreement to help support the field of public health by encouraging access to existing

medicines and to research on new medicines. At Doha, members adopted a separate

declaration14 to underline the importance they attach to the issue. The ministers also

instructed the TRIPs Council to take into account any interrelation between the TRIPs

Agreement and the United Nations (UN) Convention on Biological Diversity,15 the

protection of traditional knowledge and folklore,16 and any other relevant new

13 World Trade Organization, Ministerial Declaration – Adopted on 14 November 2001,

WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 15.

14World Trade Organization, Declaration on the TRIPs Agreement and Public Health – Adopted on

14 November 2001, WT/MIN(01)/DEC/2, Nov. 20, 2001.

15 The Convention on Biological Diversity was signed at the United Nations Conference on

Environment and Development held in Rio de Janeiro, Brazil, in 1992, as part of the conference’s

objective to agree on a comprehensive strategy to achieve so-called sustainable development, a strategy
2-7

developments concerning trade-related intellectual property rights. Lastly, ministers

agreed to extend the transition period for least developed country members to

implement the TRIPs Agreement’s provisions on patent rights protection for

pharmaceutical products until January 1, 2016.

Negotiations Deferred

Introduction

Under the WTO work program adopted at Doha, negotiations on agriculture,

services, and geographical indications already begun in 2000 were combined with

market-access negotiations on industrial goods, which are scheduled to begin in 2002

(see below). Beyond these four subjects, the ministers at Doha marked additional

subjects for further study in preparation for a decision at the 2003 ministerial

conference on whether or not to include them in the negotiations. These include:

H trade and investment,

H trade and competition policy,

H transparency in government procurement, and

H trade facilitation.

The mandate at Doha for these four topics is based on language saying that “we agree

that negotiations will take place after the Fifth Session of the Ministerial Conference on

the basis of a decision to be taken, by explicit consensus, at that Session on modalities

of negotiations.”17 The phrase “by explicit consensus,” inserted in negotiations at Doha

at the insistence of India, raises some uncertainty as to whether members have indeed

agreed to begin negotiations on these four issues after the ministerial conference in

2003 or whether agreement to begin negotiation of these issues is subordinate to

15—Continued

that aims to meet the needs of current generations while ensuring a healthy and viable world for future

ones. The convention entered into force on Dec. 29, 1993, and had 168 signatures as of Sept. 12, 2001.

The United States signed the convention in April 1993, but has not ratified it to date. The convention is

administered under the United Nations Environment Programme, by the Secretariat of the Convention on

Biological Diversity, situated in Montreal, Canada. See the website maintained by the Secretariat of the

Convention on Biological Diversity, found at Internet address http://www.biodiv.org/, retrieved

Feb. 19, 2002.

16 The World Intellectual Property Organization (WIPO) became a specialized agency of the United

Nations in 1974, succeeding the longstanding United International Bureaux for the Protection of

Intellectual Property. WIPO is mandated to administer intellectual property matters recognized by the

UN member states. At its General Assembly meeting in Sept.-Oct. 2000, WIPO member states agreed to

establish a special body to discuss intellectual property issues related to genetic resources, traditional

knowledge, and folklore. The Intergovernmental Committee on Intellectual Property and Genetic

Resources, Traditional Knowledge, and Folklore held its first session from Apr. 30 to May 3, 2001. For

further detail, see the WIPO website, found at Internet address http://www.wipo.int/, retrieved Feb. 19,

2002.

17 World Trade Organization, Ministerial Declaration – Adopted on 14 November 2001,

WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 20, 23, 26, and 27.
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absolute unanimity that might allow a single WTO member to veto initiation of these

negotiations.18 In the interim until the WTO Fifth Ministerial Conference, the working

groups will continue to examine their issues along lines previously agreed.19

The working groups in all four areas were tasked by ministers at Doha to take account

of the economic development needs of developing country members. In the

declaration, ministers reiterated the need to help provide technical assistance to these

countries. Ministers hoped to build up the capacity for policy analysis and policy

development in these developing country governments. This capability would allow

these governments to better evaluate the implications of closer multilateral cooperation

for their economic development objectives and policies–as they affect both humans

and institutions–and so would allow these governments to participate more effectively

in multilateral trade negotiations, whether those launched at Doha or elsewhere.

Investment

The Working Group on the Relationship Between Trade and Investment was directed

by ministers to focus on clarifying the following issues before the 2003 ministerial

conference:20

H the scope and definition of the trade-investment relation;

H transparency;

18 In submitting the final three draft texts to delegates at Doha for adoption (the Ministerial

Declaration, the Declaration on the TRIPS Agreement and Public Health, and the Decision on

Implementation-Related Issues and Concerns), the chairman–Qatari Finance, Economy and Trade

Minister Youssef Hussain Kamal–issued this clarification that would appear to be the governing

statement:

I would like to note that some delegations have requested clarification concerning paragraphs 20,

23, 26 and 27 of the draft declaration. Let me say that with respect to the reference to an ’explicit

consensus’ being needed, in these paragraphs, for a decision to be taken at the Fifth Session of the

Ministerial Conference, my understanding is that, at that session, a decision would indeed need to be

taken by explicit consensus, before negotiations on trade and investment and trade and competition

policy, transparency in government procurement, and trade facilitation could proceed. In my view, this

would also give each member the right to take a position on modalities that would prevent negotiations

from proceeding after the Fifth Session of the Ministerial Conference until that member is prepared to join

in an explicit consensus.

WTO, Introductory remarks by Chairman Youssef Hussain Kamal at the closing plenary session on

Nov. 14, 2001 regarding the draft ministerial declarations and decision presented for adoption, found at

Internet address http://www.wto.org/english/thewto_e/minist_e/min01_e/min01_chair_speaking_

e.htm#clarification, retrieved on Apr. 25, 2002.

19 The majority of these working groups were mandated at the 1996 WTO First Ministerial

Conference in Singapore, hence their moniker as “Singapore” issues. The issue of trade facilitation was

added at the 1998 WTO Second Ministerial Conference, held in Geneva, Switzerland.

20 WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001,WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 20 to 22. The group has been examining the

following issues, first set out in 1997: (I) implications of the relationship between trade and investment for

development and economic growth, (II) the economic relationship between trade and investment, (III) a

stocktaking and analysis of existing international instruments and activities regarding trade and

investment, and (IV) on the basis of I to III, identify: (1) commonalities and differences concerning existing

international instruments concerning investment; (2) advantages and disadvantages of bilateral,

regional, and multilateral rules on investment, including from the economic development perspective; (3)

the rights and obligations of home and host countries and of investors and host countries; and (4) the

relationship between existing and future international cooperation on investment policy, and between

such cooperation regarding competition policy.
2-9

H nondiscrimination;

H modalities for preestablishment commitments based on a GATS-type, positive

list approach;21

H development provisions;

H exceptions and balance-of-payments safeguards; and

H consultation and the settlement of disputes between members.

Competition Policy

The Working Group on the Interaction between Trade and Competition Policy is to

focus on the clarification of:22

H core principles (including transparency, nondiscrimination and procedural

fairness, and provisions on hardcore cartels);

H modalities for voluntary cooperation; and

H support for progressive reinforcement of competition institutions in

developing countries through capacity building.

Transparency in Government Procurement

Work already done in the Working Group on Transparency in Government

Procurement will help toward negotiating a multilateral agreement on transparency in

government procurement.23 Although the group has not resolved the issue of whether

participants ought to proceed to negotiate such an agreement, much of

thepreparatory work that can be done without proceeding to actual negotiation of

market-access commitments has been completed as regards government procurement

practices and their transparency.24

21“Establishment” issues concern the direct investment of a firm in a host country, that is, establishing

a foreign firm in the host country. Issues often divide into pre- and post-establishment investment stages.

A “positive” list–such as the service sectors offered under the GATS–indicates that a country actively

places a sector onto a negotiated list, in contrast to a “negative” list–such as the market-access

negotiations set out at Doha–where all sectors are automatically included and a country instead actively

removes a sector from the list to prevent bringing that sector into competition with foreign firms under the

agreement being negotiated.

22 WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001, WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 25. The group has been examining the

following issues, first set out in 1997: (I) the relevance of fundamental WTO principles of national

treatment, transparency and most-favored-nation treatment to competition policy and vice versa; (II)

approaches to promoting cooperation and communication among members, including in the field of

technical cooperation; (III) the contribution of competition policy to achieving the objectives of the WTO,

including the promotion of international trade; and (IV) other issues raised by members relating to the

group’s mandate to study the interaction between trade and competition policy.

23 Ibid., par. 26.

24 U.S. Department of State telegram, “Meetings of the WTO Working Group on Transparency in

Government Procurement,” message reference No. 6713, prepared by the U.S. Mission, Geneva,

Oct. 20, 1998; “Constructive discussions in the WTO Working Group on Transparency in Government
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Trade Facilitation

On trade facilitation, until the 2003 ministerial conference, the Council for Trade in

Goods will clarify aspects of GATT Article V (Freedom of Transit), Article VIII (Fees and

Formalities Connected with Importation and Exportation), and Article X (Publication

and Administration of Trade Regulations) that pertain to the expeditious movement,

release, and clearance of goods–including goods in transit.

Negotiations and Work Program Added at Doha

Market Access for Non-agricultural Products

In the Doha declaration, members agreed to negotiations to reduce or eliminate as

appropriate tariff and nontariff barriers on non-agricultural products, including tariff

peaks, high tariffs, and products subject to tariff escalation.25 Product coverage is to

be comprehensive, with no automatic exclusions. Members are to take account of

developing countries’ special needs and interests during these negotiations, such as

accepting less-than-full reciprocity regarding commitments on tariff and nontariff

barrier reduction or focusing on products of particular export interest to developing

countries. Members agreed in the declaration to assist the least developed countries

with technical studies and capacity-building measures to help them participate more

effectively in the negotiations. No single negotiating format was established so that

different methods will be possible, including mutual tariff elimination,26 tariff

harmonization, sectoral agreements,27 etc.

WTO Rules

In the Doha Ministerial Declaration, ministers stated that “we agree to negotiations

aimed at clarifying and improving disciplines under the agreements on

Implementation of Article VI of the GATT 1994 and on Subsidies and Countervailing

Measures, while preserving the basic concepts, principles and effectiveness of these

agreements and their instruments and objectives, and taking into account the needs of

developing and least-developed participants.”28 Ministers agreed to these

24—Continued

Procurement,” message reference No. 1915, prepared by the U.S. Mission, Geneva, Mar. 16, 1999; and

“Results of Geneva informals on a WTO Agreement on Transparency in Government Procurement,”

message reference No. 7194, prepared by the U.S. Mission, Geneva, Sep. 22, 1999.

25 WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001, WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 16.

26 Commonly known as “zero-for-zero initiatives.”

27 Such as the WTO Information Technology Agreement.

28 WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001, WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 28. The WTO Agreement on

Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 is known more

commonly as “the WTO Agreement on Anti-Dumping Practices,” or more simply, “the Antidumping

Agreement.” The agreement aims to provide signatories with a remedy–imposition of antidumping

duties–against products in international trade that are being “dumped,” that is, sold at less than “normal”
2-11

negotiations in light of their view of the greater use of antidumping and countervailing

duty measures by an increasing number of WTO members.

Negotiations on improving WTO rules are to take place in two phases. In the initial

phase, participants will indicate the provisions that they seek to clarify and improve,

including disciplines on trade distorting practices. In the subsequent phase,

participants will seek to improve on practices identified in the first phase. The

negotiations are also to specifically examine WTO disciplines regarding fishery

subsidies, taking into account the importance of this sector to developing countries.

Dispute Settlement Understanding

At Doha, ministers agreed to negotiations to improve and clarify the Dispute Settlement

Understanding (DSU), based on work done to date. The deadline to reach agreement

on these improvements is scheduled for May 31, 2003, with the agreed improvements

to enter into force as soon as possible thereafter. This deadline is earlier than the

January 1, 2005, overall deadline for the multilateral trade negotiations launched at

Doha. It is also the sole issue that is to be independent of the “single undertaking” terms

of the Doha negotiations, where all issues must be agreed before anything is

considered agreed. Thus, DSU improvements are to be implemented regardless of the

outcome of the overall Doha negotiations.

Trade and Environment

Ministers agreed at Doha to negotiations on (1) the relation between WTO trade rules

and trade rules set out in Multilateral Environmental Agreements (MEAs), (2)

information exchange procedures between WTO committees and MEA secretariats,

and (3) the reduction and elimination of tariff and nontariff barriers to environmental

goods and services.29 Ministers also instructed the Committee on Trade and

Environment (CTE) to continue its work agenda, giving particular attention to (1) the

impact of environmental measures on market access,30 (2) provisions of the TRIPs

Agreement relevant to trade and the environment, and (3) labeling requirements for

environmental purposes. The CTE is to report to the 2003 ministerial conference, and

make recommendations as appropriate.

Electronic Commerce

Ministers directed the General Council to continue the work program on electronic

commerce that began following the Ministerial Declaration on Electronic Commerce of

28—Continued

value according to terms and conditions set out in the agreement. The WTO Agreement on Subsidies and

Countervailing Measures seeks to provide a parallel remedy–imposition of countervailing duties–against

products in international trade that are subsidized in a manner not accepted under the terms and

conditions set in the agreement.

29 Ibid., par. 31 to 33.

30 In particular, where the reduction of trade restrictions and distortions would benefit trade, the

environment, and the economic development of the countries not yet industrialized.
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May 20, 1998.31 The council is to report to the 2003 ministerial conference. Members

agreed to continue not to impose customs duties on electronic transmissions until the

2003 conference.

The work program on electronic commerce is continuing in WTO bodies according to

their areas of particular competence. The Council for Trade in Goods is to focus on

issues relating to market access, trade facilitation, and standards. Cross-cutting issues

of broader scope, such as how to classify electronic commerce (e.g., whether as a

good, as a service, as both, as something sui generis, etc.) is taking place in discussions

at the General Council level. The Council for Trade in Services and the TRIPs Council

continue to assist actively on issues touching their fields.

The Doha Development Agenda

Introduction

The Uruguay Round Agreements greatly expanded the coverage of international

trade disciplines; as a consequence the rules for, and commitments by, governments

expanded greatly as well. Developing country members have had greater difficulty

than developed ones in implementing their commitments–even following a 1995-2000

transition period.32 The WTO and the GATT preceding it, have long provided “special

and differential” treatment to developing country members to account for differing

degrees of economic development. Despite this, a number of developing countries

have indicated that the practical costs of implementing their WTO obligations have not

been offset by the theoretical trade benefits that should be forthcoming. During 1999,

a number of developing country delegations cautioned in the run-up to the Seattle

ministerial that their governments were unlikely to agree to additional commitments

imposed by a new round of trade negotiations until their present commitments were

more certainly under control.

In 2001, ministers looking to launch a new round after their 1999 failure in Seattle were

still faced with developing country reticence toward new commitments spurred on by

continuing implementation difficulties. To build support for a new round, the ministers

found that they needed to address the economic development aspects of new

negotiations more fully. As a result, the Doha declaration contains numerous

references “to take into account the needs of developing and least developed

countries,” “to give due consideration to their development priorities,” “to give due

consideration to products of export interest to the developing and least developed

countries,” and their “need of greater technical assistance and capacity building.”

31 Ibid., par. 34.

32 WTO Ministerial Conference – Fourth Session, Implementation-related Issues and Concerns –

Decision of 14 November 2001, WT/MIN(01)/17, Nov. 20, 2001, preamble.
2-13

In addition to the declaration’s universal provisions that nevertheless contain such

references, the declaration also contains particular provisions that target problems

encountered specifically by developing and least developed countries. These sections

from the Ministerial Declaration are summarized below. Following the Doha

conference, the WTO Secretariat announced organizational changes in December

2001 so as to consolidate in institutional terms the work priorities in the Doha

declaration that focus on economic development. These priorities were subsequently

called the “Doha Development Agenda.”33

Small Economies

In the Doha Ministerial Declaration, the General Council agreed to a work program to

examine issues of trade that concern small, vulnerable economies in particular, in an

effort to identify responses that might better integrate their economies into the

multilateral trading system.34

Trade, Debt, and Finance

The General Council agreed to establish a working group to examine issues of finance

and debt–although limited to the extent of WTO’s competence on financial issues–to

search for a solution to the problem of external debt and its impact on trade

encountered by a number of developing and least developed countries.35

Trade and Transfer of Technology

The General Council agreed to establish a working group to examine technology

transfer issues, to look for ways to increase technology flows to developing countries.

The General Council is to report to the 2003 ministerial conference on progress

made.36

Technical Cooperation and Capacity Building

Past WTO activity in the area of technical cooperation and capacity building has

evolved largely along two lines: (1) the Integrated Framework for Trade-Related

Technical Assistance to Least-Developed Countries; and (2) technical

assistance, cooperation, and “capacity building.”37 The Integrated Framework is

33 WTO, “Organizational Changes in the WTO Secretariat — Director-General Meeting with

Staff,” WTO News: Speeches — DG Mike Moore, Dec. 14, 2001, found at Internet address

http://www.wto.org/english/news_e/spmm_e/spmm74_e.htm, retrieved Feb. 4, 2002.

34 WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001, WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 35.

35 Ibid., par. 36.

36 Ibid, par. 37.

37 Many developing country WTO members have found as they integrate into the world trading

system, that to make their trade regime and institutions compatible with their WTO commitments, it is often

necessary to first create these institutions, government departments, trade regimes, legal procedures,

regulatory frameworks, etc. WTO technical assistance efforts are increasingly geared toward such

“capacity building,” whether in human or institutional terms.
2-14

sponsored by six core international organizations including the WTO, and is targeted

at improving the least developed countries’ (LDCs) technical infrastructure relating to

international trade, and coordinating the assistance provided by international

agencies and national donor agencies for this purpose.38

WTO technical assistance programs aim to help developing and least developed

country members adjust to WTO rules and disciplines, implement their obligations,

and also to take advantage of membership rights that allow them to draw on the

benefits of an open world-trading system. While not a development agency like the

United Nations Development Programme or the World Bank, the WTO nonetheless

aims to make a contribution toward the economic development of the least developed

countries with its technical assistance programs,39 although many of its programs

could apply to similar economic conditions in middle- and lower-income developing

countries.

In the Doha Ministerial Declaration, ministers endorsed a New Strategy for WTO

Technical Cooperation for Capacity Building, Growth and Integration.40 The task of

this new strategy is to coordinate the delivery of WTO technical assistance with

assistance from bilateral donors, the OECD Development Assistance Committee, and

relevant international and regional intergovernmental institutions–all within a

coherent policy framework, according to agreed timetables, and more effectively than

in the past.

The ministers also instructed the Director-General to enhance and rationalize

operations under the Integrated Framework and the Joint Integrated Technical

Assistance Programme,41 in coordination with relevant agencies, bilateral donors,

and beneficiaries. The ministers further instructed the WTO Secretariat to strengthen

ties with relevant agencies to support national economic development plans that place

trade more directly into domestic policy efforts that are aimed at reducing poverty

(called “mainstreaming”).42 The Director-General is to provide an interim report to

the General Council in December 2002, and report again at the 2003 ministerial

conference on the implementation and adequacy of the technical assistance

commitments set out in the Doha Ministerial Declaration.

At Doha, the ministers endorsed the Integrated Framework for Trade-Related

Technical Assistance to Least-Developed Countries (IF) as a viable model for these

countries’ trade development. They solicited contributions to the IF Trust Fund, and to

WTO extra-budgetary trust funds, set up in favor of the least developed countries.

38 For further detail, see USITC, The Year in Trade 2000, USITC Publication 3428, pp. 2-6 to 2-7.

39 WTO, Annual Report 2000 (WTO: 2000), p. 3.

40 WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001, WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 38.

41 The Integrated Technical Assistance Programme for Selected Least-Developed and Other African

Countries, jointly administered by the WTO and the UNCTAD/WTO International Trade Centre, is one of

the initial (May 1996) WTO technical assistance programs directed at encouraging economic growth and

trade in least developed country members of the WTO.

42 This mainstreaming effort takes place largely during the coordination of assistance done through

the Integrated Framework.
2-15

Least Developed Countries

The General Council agreed at Doha to establish a working group to examine issues of

trade and the transfer of technology, with the aim of increasing technology flows to

developing countries.43

Special and Differential Treatment

Ministers agreed to review all WTO provisions regarding special and differential

treatment, with the primary aim of making these provisions more effective and

operational. The review is in part a response to the proposal by some members for a

Framework Agreement on Special and Differential Treatment.44 At Doha, the

ministers also endorsed the work program on special and differential treatment set out

in the Doha Decision on Implementation-Related Issues and Concerns.45

Declaration on the TRIPs Agreement and Public Health46

In the Doha declaration concerning the TRIPs Agreement and public health, ministers

acknowledged the gravity of the public health epidemics afflicting many developing

and least developed countries, such as HIV/AIDS, tuberculosis, malaria, and others.47

Although ministers noted that intellectual property protection is important to

developing new medicines and that this protection may significantly affect the price of

medicine, they nonetheless expressed a desire for the TRIPs Agreement to play a role in

the international response and solution to overcoming these public health problems.

As a result, the ministers highlighted that the TRIPs Agreement does not prevent WTO

members from taking measures to protect public health and promote access for all

medicines. The ministers pointed out that, under the TRIPs Agreement, each member:

(1) may grant compulsory licenses to manufacture the medicines needed to treat such

epidemics, and may determine the grounds for such compulsory licensing; (2) is free to

determine what constitutes a national emergency or urgent and extreme

circumstances regarding crises over public health; and (3) is free to establish

procedures to exhaust claims over intellectual property rights.48

43 WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001, WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 37.

44 WT/GC/W/442.

45 WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001, WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 44.

46 WTO Ministerial Conference–Fourth Session, Declaration on the TRIPs Agreement and Public

Health — Adopted on 14 November 2001, WT/MIN(01)/DEC/2, Nov. 20, 2001.

47 Ibid., par. 1 to 4.

48 Subject to MFN and national treatment considerations.
2-16

The ministers’ declaration cautions that WTO members with insufficient or no

capability to manufacture pharmaceuticals may have difficulty in using the TRIPs

Agreement’s provision concerning compulsory licensing effectively. The ministers

therefore instructed the TRIPs Council to devise a solution and report to the WTO

General Council before December 31, 2002.49

The ministers also reiterated the idea for developed country WTO members to provide

incentives to their firms and institutions to promote technology transfer to the least

developed country members, likely concerning pharmaceutical manufacturing

capability. Finally, the ministers postponed until January 1, 2016, the least developed

countries’ obligation to implement or enforce the TRIPs Agreement’s provisions that

concern patents or the protection of undisclosed information with regard to

pharmaceuticals.50

Decision on Implementation-related Issues and

Concerns51

Outstanding from the 1999 ministerial conference in Seattle, implementation issues

were a paramount concern to ministers at Doha.52 To help consolidate work done on

implementation issues since Seattle and integrate remaining implementation concerns

into the round of multilateral trade negotiations launched at Doha, ministers adopted

the Decision on Implementation-related Issues and Concerns as part of their

negotiating and work agenda.

The decision addresses various provisions found in many of the Uruguay Round

Agreements, and cross-cutting issues focused largely on the needs of the developing

and least developed countries. The decision sets out a number of clarifications of

provisions in the Uruguay Round Agreements including: agriculture, sanitary and

phytosanitary measures, textiles and clothing, technical barriers to trade,

trade-related investment measures, antidumping measures, customs valuation, rules

of origin, subsidies and countervailing measures, and trade-related aspects of

intellectual property rights. (See figure 2-2 for a summary of the WTO Decision on

Implementation-related Issues and Concerns.)

49 WTO Ministerial Conference – Fourth Session, Declaration on the TRIPS Agreement and Public

Health – Adopted on 14 November 2001, WT/MIN(01)/DEC/2, Nov. 20, 2001, par. 6.

50 Ibid., par. 7.

51 WTO Ministerial Conference–Fourth Session, Decision on Implementation-related Issues and

Concerns – Adopted on 14 November 2001, WT/MIN(01)/17, Nov. 20, 2001.

52 WTO Ministerial Conference – Fourth Session, Ministerial Declaration – Adopted on 14

November 2001, WT/MIN(01)/DEC/1, Nov. 20, 2001, par. 12.
2-17

Figure 2-2

Summary of the WTO Decision on Implementation-related Issues and

Concerns, adopted November 14, 2001

The Ministerial Conference agreed to provisions that will:

General Agreement on Tariffs and Trade 1994 (GATT 1994)

S endorse that Article XVIII (Governmental Assistance to Economic Development)–

as a provision conferrring special and differential treatment–should be less onerous than Article XII

(Restrictions to Safeguard the Balance of Payments).

S direct the WTO Committee on Market Access to give further consideration to the phrase

“substantial interest” in GATT 1994 Article XIII:2(d) (Non-discriminatory Administration

of Quantitative Restrictions), which addresses the concept of a developing country’s

substantial export interest under such measures, by not later than December 31, 2002,

and to report on its conclusions.

Agreement on Agriculture

S urge restraint in challenging “green box” measures (those exempt from the subsidy

reduction commitment under the agreement) taken by developing countries,

used to promote rural development and address food security.

S approve recommendations on (i) food aid; (ii) technical and financial assistance part of aid

programs to improve agricultural productivity and infrastructure; and (iii) financing commercial

imports of basic foodstuffs, stemming from a review of the Uruguay Round Agreements

Ministerial “Decision on Measures Concerning the Possible Negative Effects of the Reform

Programme on Least Developed and Net Food-Importing Developing Countries.”

S approve recommendations on reporting requirements regarding AGR Art. 10.2

(Prevention of Circumvention of Export Subsidy Commitments), which concerns development

of international disciplines and subsequent reporting on export credits, export credit

guarantees, and insurance programs.

S endorse continued review of expanded notifications by members regarding the administration

of tariff-rate quotas.

Agreement on the Application of Sanitary and Phytosanitary Measures

S set the phrase “longer time-frame for compliance” (SPS Art. 10.2, Special and Differential

Treatment) and “reasonable interval” (SPS Annex B, par. 2; Transparency of Sanitary and

Phytosanitary Regulations) to mean a period of not less than 6 months, when considering

new sanitary and phytosanitary measures.

S instruct the WTO Committee on Sanitary and Phytosanitary Measures to develop a

program to implement SPS Art. 4 (Equivalence), which concerns the equivalence of sanitary

and phytosanitary measures.

S instruct the committee to review the operation of the agreement every 4 years.

S encourage increased interaction between members and international standards setting

organizations, particularly the least developed countries.

S urge members to provide financial and technical assistance to least developed countries so

they may respond to new SPS measures that may negatively affect their trade.

Agreement on Textiles and Clothing

S urge due consideration before initiating antidumping investigations on textile and clothing

exports from developing countries previously subjected to quotas for 2 years following

the Jan. 1, 2005 full integration of the textiles and clothing sector into the GATT 1994.

S suggest that the WTO Council on Trade in Goods (CTG) examine the proposal to apply the

most favorable quota methodology for small suppliers under the growth-on-growth

provisions in the remaining agreement years.

S suggest that the CTG calculate the quota levels for the remaining agreement years

as if advancing the agreement’s growth-on-growth provisions for phase 3 to January 1, 2000.
2-18

Figure 2-2—Continued

Summary of the WTO Decision on Implementation-related Issues and

Concerns, adopted November 14, 2001

Agreement on Technical Barriers to Trade

S set the phrase “reasonable interval” (TBT Art. 2, par. 12; Preparation, Adoption and

Application of Technical Regulations by Central Government Bodies) to mean a period

of not less than 6 months.

S encourage increased interaction between members and international standard setting

organizations, particularly the least developed countries.

S urge members to provide financial and technical assistance to least developed countries

so they may respond to new TBT measures that may hurt their trade.

Agreement on Trade-Related Investment Measures

S accept the CTG actions regarding requests by developing country members to extend the

transition period set out in TRIMs Art. 5.2 (Notification and Transitional Arrangements).

This article calls for developed, developing, and least developed country members to implement the

TRIMs Agreement within 2, 5, and 7 years respectively of the 1995 establishment of the WTO.

S urge acceptance of requests by least developed countries under TRIMs Art. 5.3 (Notification

and Transitional Arrangements), which concerns developing country requests

to extend their transition period due to particular difficulties.

Agreement on Antidumping Duties and Practices

S inhibit the initiation of antidumping investigations on the same products subjected to a

negative finding within the past year, unless circumstances have changed.

S aim to clarify the operation of Antidumping Practices (ADP) Art. 15 (Developing Country Members).

S aim to specify the timeframe of ADP Art. 5.8 (Initiation and Subsequent Investigation,

concerning immediate termination of dumping cases with de minimis dumping margins).

S aim to clarify the annual review of the agreement under ADP Art. 18.6 (Final Provisions).

Agreement on Customs Valuation

S extend the transition period in VAL Art. 20.1 (under Part III–Special and Differential

Treatment), which concerns the 5-year period for developing countries not previously

signatory to the GATT Agreement on Customs Valuation to implement its WTO counterpart.

S urge acceptance of requests by least developed countries under VAL Annex III,

par. 1 and 2, which concern possible extension of the 5-year period under VAL Art. 20.

S urge strengthened cooperation to prevent customs fraud.

Agreement on Rules of Origin

S agree that interim arrangements on rules of origin shall be consistent with the agreement if

implemented before the conclusion of the WTO Committee on Rules of Origin’s harmonization

work program.

Agreement on Subsidies and Countervailing Measures

S agree to calculate the SCM Annex VII(b) (Developing Country Members Referred to in

Paragraph 2(a) of Article 27), which concerns developing countries that qualify for

agreement’s exemption, in terms of 3 consecutive years of per capita GNP at or below

constant 1990 US$1,000 as based on the most recent World Bank data.

S urge treating developing country policy measures that are aimed at legitimate development

goals–such as regional growth, technology research, development funding, production

diversification, and development and implementation of environmentally sound production

methods–as nonactionable subsidies under the agreement.

S reaffirm that least developed country members are exempt from the prohibition on

export subsidies under SCM Art. 3.1(a) (Prohibition, under Part II: Prohibited Subsidies)

so that these countries have the flexibility to finance their exporters, consistent with development needs.
2-19

Figure 2-2—Continued

Summary of the WTO Decision on Implementation-related Issues and

Concerns, adopted November 14, 2001

S extend the transition period under SCM Art. 27.4 (Special and Differential Treatment of

Developing Country Members), which concerns extension of a developing country’s

phase out of certain export subsidies within the required 8-year period.

Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs)

S direct the TRIPs Council to examine the scope for intellectual property rights complaints under

GATT 1994 Art. XXIII:1(b), (c) (Nullification or Impairment), which concerns a contracting

party’s benefits being impaired regardless of whether any measure conflicts with

the GATT 1994, and to make recommendations at the Fifth Ministerial Conference.

S direct full implementation of TRIPs Art. 66.2 (Least-Developed Country Members), which concerns

developed country members encouraging technology transfer to least developed countries.

Cross-cutting Issues

S instruct the Committee on Trade and Development to:

S identify nonbinding special and differential treatment provisions to see whether they

should be mandatory.

S develop ways to make special and differential treatment provisions more effective.

Outstanding Implementation Issues

S agree to address outstanding implementation issues per WT/MIN(01)/DEC/1 par. 12.

Final Provisions

S request the WTO Director-General to focus WTO technical assistance toward helping

developing countries implement their existing WTO obligations, and toward increasing

their capacity to participate more effectively in future multilateral trade negotiations.

Source: Compiled by USITC staff from WTO, Implementation-related Issues and Concerns - Decision of 14 November 2001, WT/MIN(01)/17, Nov. 20, 2001, Ministerial Conference, Fourth Session, Doha, Nov. 9-14, 2001.

Organization and Management of the Work Program

The negotiations launched at Doha are to conclude by January 1, 2005. A review

session is to take place at the Fifth Ministerial Conference, scheduled for September

10-14, 2003, in Cancun, Mexico. Once the results in all areas of the negotiations are

concluded, a special session of the ministerial conference will be held to determine

their adoption and implementation. To carry out the negotiations, the Doha

declaration calls for a Trade Negotiations Committee (TNC) to be established under

the WTO General Council.53

53 The TNC held its first meeting on January 31, 2002, and established eight subsidiary negotiating

bodies–a mixture of special session groupings of already existing WTO councils and committees, and

newly established negotiating groups. These groups are to be valid until the Fifth Ministerial Conference.

Disagreements over the TNC chairman, and the chairs of the negotiating bodies, delayed their selection

until Feb. 15, 2002. The present WTO Director-General, Mike Moore, was selected to serve as the ex

officio chairman of the TNC. By a 1999 decision of WTO members, Dr. Supachai Panitchpakdi will

succeed Mike Moore as WTO Director-General on Sept. 1, 2002, for a term to continue through Aug. 31,

2005. See WTO, “Governments Set Negotiating Guidelines; WTO DG to Chair TNC,” Press/271, Feb. 1,

2002; and “WTO Chairpersons for 2002,” Press/273, Feb. 15, 2002, found at Internet address

http://www.wto.org/english/news_e/pres02_e/pr273_e.htm, retrieved Feb. 25, 2002.
2-20

Selected WTO Activities

Dispute Settlement

In the seven years since 1995 that the WTO Dispute Settlement Understanding has

been in operation, an increased number of members have brought cases under the

integrated dispute-settlement system. In the early years, a greater number of

consultations were held (approximately 40 to 45 each year during 1996-1998),

followed in later years by the number of consultations subsiding (to approximately 25

to 35 per year during 1999-2001).

Dispute panels

The number of dispute-settlement panels established annually has followed this

rising-then-falling pattern, reaching a high of 22 panels established in 1997 and 23 in

1999, before subsiding to 12 and 14 in 2000 and 2001, respectively. Panel reports

circulated–the consequent output of the panel process–continues the pattern, lagged

for the 12 month to 18 month operating time of a standard dispute panel. Panel reports

circulated rose to around 16 in 1999 and 20 in 2000, before falling off to

approximately eight reports in 2001.

Appeals panels

The appeals process–a new mechanism established in 1995 by the creation of the

WTO Appellate Body–has been used by WTO members to clarify certain findings of

law and legal interpretations presented by the dispute-settlement panels in a number

of cases. The number of Appellate Body reports circulated increased steadily from 0 to

seven between 1995 and 1998, reached 12 and 10 in 1999 and 2000, respectively,

and fell in 2001 to seven appeals reports issued.

Arbitration and compliance panels

With the general increase in appeals has also come increased testing of the DSU

provisions regarding implementation of and compliance with dispute-panel and

Appellate Body rulings. Arbitration panels established to determine the time period a

disputant has to carry out a dispute panel’s recommendations, have increased steadily

since 1995 until reaching seven or eight such arbitration panels annually in

1998-2000. The most recent focus appears to concern DSU Article 21.5 regarding

compliance with dispute-panel recommendations. Beginning from zero compliance

panel reports during 1995-1998, the number of compliance panel reports issued has

increased steadily during 1999-2001 to around five for 2001. In addition, at least half

of these compliance panel reports have been appealed, reaching four out of five of the

compliance reports under appeal in 2001.
2-21

Retaliation

In 2001, members did not seek to further test DSU provisions concerning the ultimate

stage of the dispute-settlement process, aimed at redressing a failure or refusal to

implement a dispute panel’s recommendations: a suspension of concessions, known

better as retaliation. In 1999, four cases involved a request to suspend concessions,

with authorization granted in two cases. In 2000, one request for retaliation and one

authorization to retaliate were carried out.

Membership

Accessions

In 2001 and just beyond, four observer countries completed their accession

negotiations to become new WTO members: Lithuania acceded on May 31, Moldova

on July 27, the Peoples Republic of China on December 11, and the Separate Customs

Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), which established its

accession as of January 1, 2002. (See table 2-1 for WTO membership in 2001.)

Organization for Economic Cooperation and Development

Trade Committee

In 2001, the OECD Trade Committee held three formal meetings in February, April,

and October 2001, and an informal meeting in September 2001. In addition to

internal matters, the committee members discussed a number of issues, largely in

preparation for the prospective launch of a new round of multilateral trade

negotiations at the WTO Fourth Ministerial Conference in November 2001.

Committee discussions centered on issues of trade, and economic development.

Regarding trade matters, delegates considered current trade and trade policy

developments, and the scope for further trade liberalization. In the lead-up to the

WTO ministerial conference, committee members focused on matters likely to be

central at that meeting: market-access negotiations, implementation of prior WTO

obligations, clarification and development of WTO rules and disciplines, and the

coherence of multilateral economic policymaking. Trade Committee members also

debated issues involving steel in preparation for the OECD Special Meeting at

High-Level on Steel Issues, held first in September 2001.54

54 Subsequent high-level meetings on steel have been held in December 2001, February 2002, and

March 2002.
Albania

Angola

Antigua & Barbuda

Argentina

Australia

Austria

Bahrain

Bangladesh

Barbados

Belgium

Belize

Benin

Bolivia

Botswana

Brazil

Brunei Darussalam

Bulgaria

Burkina Faso

Burma/Myanmar

Burundi

Cameroon

Canada

Central African Rep.

Chad

Chile

China

China, Hong Kong

China, Macao

Chinese Taipei1

Colombia

Congo, Dem. Rep.

Congo, Rep.

Costa Rica

Côte d’Ivoire

Croatia

Cuba

Cyprus

Czech Rep.

Denmark

Djibouti

Dominica

Dominican Rep.

Ecuador

Egypt

El Salvador

Estonia

European Community

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, Rep. of

Kuwait

Kyrgyz Rep.

Latvia

Lesotho

Liechtenstein

Lithuania

Luxembourg

Madagascar

Malawi

Malaysia

Maldives

Mali

Malta

Mauritania

Mauritius

Mexico

Moldova

Mongolia

Morocco

Mozambique

Namibia

Netherlands, NL Antilles2

New Zealand

Nicaragua

Niger

Nigeria

Norway

Oman

Pakistan

Panama

Papua New Guinea

Paraguay

Peru

Philippines

Poland

Portugal

Qatar

Romania

Rwanda

Saint Kitts & Nevis

Saint Lucia

Saint Vincent & the

Grenadines

Senegal

Sierra Leone

Singapore

Slovak Rep.

Slovenia

Solomon Islands

South Africa

Spain

Sri Lanka

Suriname

Swaziland

Sweden

Switzerland

Tanzania

Thailand

Togo

Trinidad & 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 (Chinese Taipei).

Chinese Taipei acceded so as to commence its membership as of Jan. 1, 2002. 2 The Kingdom of the Netherlands is also signatory for the Netherlands Antilles.

Source: WTO, “Members and Observers,” found at Internet address

http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm, retrieved Feb. 25, 2002.

2-22

Table 2-1

WTO membership, 2001
2-23

Regarding economic development, committee members considered issues that

focused more on developing countries than on OECD member countries, whose

membership comprises the world’s 30 most industrialized nations. In 2001, the

committee deliberated in general on trade and development issues in non-member

countries, and more specifically on building up developing countries’ capacity to

handle increased trade. The delegates also looked into ways to improve the coherence

of economic policymaking undertaken by various international institutions aimed at

reducing poverty. Delegates also prepared for a joint discussion on development

issues with the OECD Development Assistance Committee. Related more broadly to this

development focus, the committee also examined the issue of sustainable development

and adopted the report of the OECD Joint Working Party on Trade and Environment.

Export Credit Group Negotiations

Negotiations taking place in the OECD Export Credit Group (ECG) reached

agreement in July 2001 on a Statement of Principles designed to discourage member

governments from awarding officially supported export credits for “unproductive”

expenditures in so-called Heavily Indebted Poor Countries (HIPCs).55 Unproductive

expenditures are considered to be non-essential capital goods and projects that do not

contribute to social or economic development in the poorest nations, but rather have

the effect of increasing these countries’ external debt burden. Although these countries

are not currently major export-credit markets, such credits have raised external debt in

the past. The principles are consistent with the Debt Initiative for Heavily Indebted Poor

Countries, led by the World Bank, that aims to reduce these poor countries’ debt to

sustainable levels, and more broadly with efforts by the OECD member countries to

adopt more sustainable trade and development policies. The ECG members agreed to

report official export-credit transactions involving these countries and to review them

annually.

By December 2001, negotiations in the ECG also reached agreement on a Draft

Recommendation on Common Approaches on Environment and Officially Supported

Export Credits.56 The draft urges members to apply common means–set out in the

recommendation’s annexes–to evaluate the environmental impact of projects when

awarding officially supported export credits. The draft includes, by way of example,

the environmental impact of such export credits on resettlement, the impact on

indigenous or vulnerable groups, and the impact on cultural heritage.

55 OECD, “OECD Export Credit Group Discourages Official Support for Unproductive Expenditure

in Heavily Indebted Poor Countries: A Statement of Principles,” press release, July 19, 2001, found at

Internet address http://www.oecd.org/, retrieved Feb. 27, 2002.

56 OECD, Draft Recommendation on Common Approaches on Environment and Officially

Supported Export Credits: Revision 6, TD/ECG(2000)11/REV6, Dec. 17, 2001, found at Internet address

http://olisnet.oecd.org/, retrieved Feb. 27, 2002.

3-1

CHAPTER 3

Regional Trade Activities

Regional trade activities were an important component of U.S. trade policy during

2001. The United States participated in activities related to the North American Free

Trade Agreement (NAFTA), ongoing discussions to negotiate the Free Trade Area of

the Americas (FTAA), the Asia Pacific Economic Cooperation (APEC) forum, and the

African Growth and Opportunity Act (AGOA).

North American Free Trade Agreement

U.S. Trade with NAFTA Partners

Total U.S. trade with NAFTA partners increased 70 percent over the last three years,

with Canada accounting for $361.4 billion in two-way trade and Mexico contributing

$221.0 billion in 2001.

The general slowdown in the U.S. economy in 2001, however, is reflected in the

NAFTA trade data (table 3-1). Although U.S. imports from NAFTA partners increased

13 percent over the last three years, the $56.5 billion increase in 2000 was partially

offset by a $16.5 billion decline in 2001. U.S. exports to NAFTA partners also

decreased in 2001 because of the slowdown in their economies. The bulk of U.S.

exports to Canada and Mexico consists of intermediate goods and machinery that are

used to make articles that are exported to the United States. Over the last three years,

the United States experienced a sluggish 3.5 percent increase in exports to NAFTA

partners, again because of declining U.S. exports to both Canada and Mexico in

2001. The U.S. trade deficit with NAFTA partners increased by 40 percent over the last

three years, from $80.1 billion in 1999 to $112.2 billion in 2001.

Table 3-1

U.S. trade with NAFTA partners, 1999-2001

(Billion dollars)

Year NAFTA partner U.S. exports U.S. imports Trade balance

Two-way

trade

1999 Canada ............. 145.7 198.2 -52.5 344.0

Mexico . . . . . . . . . . . . . 81.4 109.0 -27.6 190.4

Canada and Mexico . . . 227.1 307.3 -80.1 534.4

2000 Canada . . . . . . . . . . . . . 155.6 229.1 -73.5 384.7

Mexico . . . . . . . . . . . . . 100.4 134.7 -34.3 235.2

Canada and Mexico . . . 256.0 363.8 -107.8 619.8

2001 Canada . . . . . . . . . . . . . 144.6 216.8 -72.2 361.4

Mexico . . . . . . . . . . . . . 90.5 130.5 -40.0 221.0

Canada and Mexico . . . 235.1 347.3 -112.2 582.4

Note.—Because of rounding, figures may not add to totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce.
3-2

Free Trade Commission

The three NAFTA trade ministers held their annual meeting in Washington, D.C., on

July 31, 2001. The trade ministers highlighted the successes of NAFTA during its first 7

years, reporting a 128 percent increase in intra-NAFTA trade flows since

implementation, increased investment in NAFTA countries, and “millions of job

created in the three countries.”1 The ministers expressed continued support for

regional and multilateral trade liberalization, including the launching of a new WTO

round. They concluded that the trade and investment experiences of NAFTA members

“demonstrate decisively that countries of different levels of trade and development

benefit from a free trade agreement.”

During 2001, NAFTA partners completed their fourth round of accelerated tariff

eliminations, implemented on January 1, 2002, on $25 billion worth of NAFTA trade.

Accelerated tariff eliminations, provided for under Article 302(3) of the NAFTA, allow

for negotiated tariff reductions ahead of the NAFTA schedule. Under the fourth round,

the United States will eliminate tariffs on some rubber and plastic footwear items from

Mexico. Mexico will eliminate tariffs on goods listed under motor vehicles, electrical

and electronic goods, toys, and chemicals. The third round of accelerated tariff

eliminations was implemented January 1, 2001. Products liberalized under the third

round represented $1 billion worth of NAFTA trade in footwear, chemicals,

pharmaceuticals, auto parts, and batteries.2

The trade ministers continued working towards liberalization of the NAFTA rules of

origin. They tentatively agreed to liberalize rules of origin for alcoholic beverages,

petroleum/topped crude, esters of glycerol, pearl jewelry, headphones with

microphones, and chassis fitted with engines. The ministers reviewed NAFTA Chapter

11, investor-state dispute resolution.3 The ministers clarified provisions under Article

1120(2) concerning timely public access to documents submitted for arbitration under

Chapter 11, with necessary exceptions for business confidential information or

privileged or protected information. They reaffirmed that Chapter 11 provisions

require “minimum standard of treatment in accordance with international law” under

Article 1105(1).

Commission for Labor Cooperation

The Commission for Labor Cooperation (CLC) was formed under the North American

Agreement on Labor Cooperation (NAALC). The NAALC is a side-agreement of

NAFTA and was implemented on January 1, 1994. The goal of the NAALC is to

“improve working conditions and living standards, and commit [member countries] to

1 USTR, “Joint Statement of the NAFTA Free Trade Commission, Building on a North American

Partnership,” press release 01-59, July 31, 2001.

2 USTR, “NAFTA Countries Eliminate Tariffs on Nearly $1 Billion in Trade,” press release 01-10,

Jan. 19, 2001.

3USTR, “Free Trade Commission Clarifications Related to NAFTA Chapter 11,” July 31, 2001, found

at Internet address http://www.ustr.gov, retrieved Jan. 8, 2002.
3-3

promoting eleven labor principles to protect, enhance and enforce basic workers’

rights.”4 The NAALC Ministerial Council consists of the U.S. Department of Labor,

Human Resources Development Canada, and the Secretaria del Trabajo y Prevision

Social. The CLC consists of the supporting Secretariat. Each member country has a

National Administrative Office (NAO). The NAO offices receive petitions alleging

violations of labor laws in NAFTA partner countries. If the petition is accepted by the

NAO, there is a hearing and a review process. The NAO issues a Public Report of

Review with its recommendations.

Twenty-four petitions have been filed at NAOs since January 1, 1994.5 Sixteen of the

24 petitions were filed with the U.S. NAO alleged labor law violations on freedom of

association, illegal child labor, pregnancy-based gender discrimination, minimum

employment standards, safety and health issues, and compensation in cases of

occupational illness and injury in Mexico or Canada. Fourteen of the U.S. NAO

petitions alleged Mexican labor law violations, with two cases filed against Canada.

Five petitions against the United States were filed with the Mexican NAO. Three

petitions filed with the Canadian NAO included two cases against Mexico and one

against the United States.

The U.S. NAO issued a Public Report of Review on April 6, 2001, regarding the petition

U.S. NAO 2000-01 (Auto Trim/Custom Trim).6 The report recommended the U.S.

Secretary of Labor consult with the Mexican labor secretary regarding allegations of

unsafe and hazardous working conditions in two Mexican automobile factories

named in the petition. Twelve of the petitions received by NAOs since 1994 have been

referred to ministerial consultations. Only one new petition was received by an NAO in

2001 (U.S. NAO 2001-01 Duro Bag).

Commission for Environmental Cooperation

The Commission for Environmental Cooperation (CEC) was formed under the North

American Agreement for Environmental Cooperation (NAAEC). The NAAEC is a

side-agreement of NAFTA and was implemented on January 1, 1994. The goal of the

NAAEC is to “enhance cooperation and public participation in the preservation,

protection, and enrichment of North America’s natural environment.”7 The CEC

distributed 17 research grants totaling $400,000 in 2001. CEC-funded research

proposals in 2001 fell into two broad categories: conservation and sustainable use of

bio-diversity involving Marine Protected Areas, and enhancing community access to

information and participation in addressing issues related to children’s health and the

4 USTR, “NAFTA Organizations,” found at Internet address http://www.ustr.gov, retrieved Jan. 8,

2002.

5 U.S. Department of Labor, “Status of Submissions,” found at Internet address

http://www.dol/gov/dol/ilab/public/programs/nao, retrieved Jan. 8, 2002.

6 North American Commission for Labor Cooperation, “Communications Submitted to the United

States National Administrative Office (NAO),” found at Internet address http://www.naalc.org,

retrieved Nov. 26, 2001.

7 USTR, “NAFTA Organizations,” found at Internet address http://www.ustr.gov, retrieved Jan. 8,

2002.
3-4

environment. Twelve of the CEC-funded research projects for 2001 were single

country proposals; five were in Canada, four were in Mexico, and three were in the

United States. Two proposals were for joint projects between the United States and

Mexico. Two proposals were for joint projects between the United States and Canada.

One of the funded research proposals in 2001 was trinational.

The CEC issued its first State of the Environment Report.8 The report contains

conclusions regarding environmental issues facing the three NAFTA partners.

According to the report, current measures of economic progress in the NAFTA partner

countries, like GDP, do not accurately measure the “true cost” of development. The

report states that natural disasters are becoming more frequent and more expensive,

and poor people are hit the hardest by environmental problems. The report expresses

concern regarding the sustainability of North American fisheries, and notes that North

American transportation growth is following unsustainable trends. Although soil

erosion in North America is declining, the CEC reports that the threat of drought is

rising. Canada and the United States are the largest per capita water users in the

world, according to the CEC report.

Dispute Settlement

Six binational panels were formed in 2001 under provisions of NAFTA Chapter 19,

which provides for review and dispute settlement in antidumping and countervailing

duty matters. One review regarding a U.S. agency’s final determination of

circumvention of the antidumping duty order on certain cut-to-length carbon steel

plate from Canada was terminated without issuance of a binational panel decision.9

Five of the six Chapter 19 reviews begun by NAFTA binational panels in 2001 were

active on January 1, 2002 (table 3-2). All five relate to U.S. agencies’ determinations10

on products from Mexico.11

Two NAFTA Chapter 19 binational panels issued decisions in 2001. A panel decision

was issued on August 3, 2001, against a dumping determination by the Mexican

Secretaria de Economia regarding imports of high-fructose corn syrup (HFCS)

originating in the United States.12 The binational panel found that the Mexican agency

failed to establish threat of injury to the Mexican sugar industry by imports from the

United States. The Secretaria de Economia was requested to terminate collection of

duties on HFCS imports from the United States and to refund antidumping duties

8 Commission for Environmental Cooperation, “The North American Mosaic: A State of the

Environment Report,” news release, Jan. 7, 2002, found at Internet address http://www.cec.org,

retrieved Jan. 8, 2002.

9 Certain cut-to-length carbon steel plate (USA-CDA-2001-1904-01).

10 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. International Trade Commission.

11 USA-MEX-2001-1904-02, USA-MEX-2001-1904-03, USA-MEX-2001-1904-04, USA-MEX2001-1904-05, and USA-MEX-2001-1904-06.

12 High-fructose corn syrup (USA-MEX-98-1904-01).
Table 3-2

NAFTA Chapter 19 binational panels, active reviews in 2001NAFTACountry Case

National agencies’final determination1 Product description

Canada CDA-MEX-99-1904-01 Injury Certain hot-rolled carbon steel plate, originating in or exported from M

CDA-USA-2000-1904-01 Dumping Certain iodinated contrast media used for radiographic imaging, origin

exported from the United States of America (including the CommonwPuerto Rico)

CDA-USA-2000-1904-02 Injury Certain iodinated contrast media used for radiographic imaging, origin

exported from the United States of America (including the CommonwPuerto Rico)

CDA-USA-2000-1904-03 Dumping Certain top-mount electric refrigerators, electric household dishwashers

electric laundry dryers, originating in or exported from the United Stand produced by, or on behalf of, White Consolidated Industries, IncCorporation, their respective affiliates, successors and assigns

CDA-USA-2000-1904-04 Injury Certain refrigerators, dishwashers, and dryers, originating in or export

United States of America and produced by, or on behalf of, White CIndustries, Inc. and Whirlpool Corporation, their respective affiliates, assigns

Mexico MEX-USA-98-1904-01 Dumping Imports of high-fructose corn syrup originating in the United States of A

MEX-USA-00-1904-01 Dumping Imports of urea originating in the United States of AmericaMEX-USA-00-1904-02 Dumping Bovine carcasses and half carcasses, fresh or chilled originating in the 

of America

United States USA-97-1904-01 5th Antidumping duty

administrative review

Gray portland cement and clinker from Mexico

USA-MEX-98-1904-02 6th Antidumping duty

administrative review

Gray portland cement and clinker from Mexico

USA-MEX-98-1904-04 10th Antidumping duty

administrative review

Porcelain-on-steel cookware from Mexico

See footnotes at end of table.
Table 3-2—Continued

NAFTA Chapter 19 binational panels, active reviews in 2001

NAFTACountry Case

National agencies’final determination1 Product description

United StatesContiuned USA-MEX-98-1904-05 Final scope ruling - antidumping order Circular welded non-alloy steel pipe from Mexico

USA-MEX-99-1904-03 7th Antidumping duty

administrative review

Gray portland cement and clinker from Mexico

USA-MEX-99-1904-05 11th Antidumping duty

administrative review

Porcelain-on-steel cookware from Mexico

USA-MEX-2000-1904-03 8th Antidumping duty

administrative review

Gray portland cement and clinker from Mexico

USA-MEX-2000-1904-04 12th Antidumping duty

administrative review

Porcelain-on-steel cookware from Mexico

USA-MEX-2000-1904-05 Full sunset review of

antidumping duty order

Gray portland cement and clinker from Mexico

USA-CDA-2000-1904-06 Full sunset review of

antidumping duty order

Pure magnesium from Canada

USA-CDA-2000-1904-07 Full sunset review of

antidumping duty order

Pure magnesium and alloy magnesium from Canada

USA-CDA-2000-1904-09 5-year reviews of

countervailing duty andantidumping duty orders

Magnesium from Canada

USA-MEX-2000-1904-10 Full review of antidumping

duty order

Gray portland cement and clinker from Mexico

USA-CDA-2000-1904-11 5-year reviews of

countervailing duty andantidumping duty orders

Carbon steel products from Canada

See footnotes at end of table.
Table 3-2—Continued

NAFTA Chapter 19 binational panels, active reviews in 2001

NAFTACountry Case

National agencies’final determination1 Product description

United StatesContinued USA-MEX-2001-1904-02 Final results of the 13thantidumping duty

administrative review

Porcelain-on-steel cookware from Mexico

USA-MEX-2001-1904-03 Final results of the full

sunset review of theantidumping duty order

Oil country tubular goods from Mexico

USA-MEX-2001-1904-04 Final results of the

9thantidumping duty

administrative review

Gray portland cement and clinker from Mexico

USA-MEX-2001-1904-05 Final results of the

4thantidumping dutyadministrative review anddetermination not torevoke

Oil country tubular goods from Mexico

USA-MEX-2001-1904-6 Final results of the 5-year

review of the antidumpingduty order

Oil country tubular goods from Mexico

1 In the United States, dumping and subsidy determinations are made by the U.S. Department of Commerce, and injury determinations are mad

Trade Commission. In Canada, final dumping and subsidy determinations are made by Revenue Canada (Customs and Excise) and injury determinathe Canadian International Trade Tribunal. In Mexico, all determinations are made by the Secretaria de Economia (formerly the Secretaria de Com

Source: NAFTA Secretariat, found at Internet address http://www.nafta-sec-alena.org, retrieved Jan. 8, 2002.
3-8

already collected. Another binational panel decision was issued on March 20, 2001,

accepting a remand request by the U.S. Department of Commerce to address

questions raised regarding calculations made by the agency in its administrative

review of an antidumping order on corrosion-resistant carbon steel flat products from

Canada.13

A NAFTA Chapter 2014 arbitral panel decision was issued on February 6, 2001,

against the United States regarding Mexican cross-border trucking services and

investment.15 The arbitral panel unanimously determined that “the U.S. blanket refusal

to review and consider for approval any Mexican-owned carrier applications for

authority to provide cross-border trucking services was and remains a breach of the

U.S. obligations under Annex I, Article 1202, and Article 1203 of NAFTA.”16 The

arbitral panel recommended that the United States take appropriate steps to comply

with its obligations under the cited provisions of the NAFTA.

Ongoing disputes between the United States and Mexico on cross-border trucking and

U.S. exports of HFCS to Mexico are discussed in detail in the Mexico section of Chapter

4. The dispute between Canada and the United States on U.S. softwood lumber

imports from Canada is discussed in the Canada section of Chapter 4.

Free Trade Area of the Americas

At the December 1994 First Summit of the Americas in Miami, Florida, the 34

democratically elected heads of state of theWestern Hemisphere (all of the countries in

the hemisphere, except Cuba) committed to forming a comprehensive free trade area,

the Free Trade Area of the Americas (FTAA) by 2005. Two-way merchandise trade

(exports plus imports) between the United States and the 33 other FTAA countries

amounted to $699 billion in 2001, with more than 80 percent taking place between the

United States and NAFTA partners Canada and Mexico ($620 billion).

Background

Following several years of preparations, FTAA negotiations were launched formally in

April 1998. 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 more direct guidance and administrative responsibilities for the FTAA

13 Corrosion-resistant carbon steel flat products (USA-CDA-98-1904-01).

14 Chapter 20 of NAFTA applies to all disputes except those arising under Chapter 19, and as

otherwise provided for in the Agreement.

15 Cross-border trucking services and investment (USA-98-2008-01).

16 NAFTA Secretariat, “NAFTA Arbitral Panel Established Pursuant to Chapter 20 in the Matter of

Cross-Border Trucking Services,” found at Internet address http://www.nafta-sec.alena.org, retrieved

Jan. 9, 2002.
3-9

negotiations. The trade ministers also created nine FTAA negotiating groups that have

specific mandates from the ministers and the TNC to negotiate text in their subject

areas. The nine negotiating groups are for: (1) market access (which includes

nonagricultural tariffs and nontariff barriers, rules of origin, customs procedures,

standards, and safeguards); (2) agriculture (which includes agricultural tariffs and

nontariff barriers), agricultural subsidies and other trade-distorting practices, and

sanitary and phytosanitary procedures; (3) services; (4) investment; (5) government

procurement; (6) intellectual property; (7) subsidies, antidumping, and countervailing

duties; (8) competition policy; and (9) dispute settlement. Also four FTAA nonnegotiating groups focus on specific technical or administrative issues: (1) technical

committee on institutional issues; (2) committee of government representatives on the

participation of civil society; (3) consultative group on smaller economies; and (4) joint

private-public sector committee of experts on electronic commerce.17

Status of the Negotiations

At their sixth meeting in April 2001 in Buenos Aires, Argentina, the FTAA trade

ministers reviewed the draft FTAA texts prepared by the negotiating groups and

recommended to their heads of state that the consolidated draft text be made available

to the public. Ministers instructed the TNC to intensify efforts to prepare a second

version of the draft agreement with a view to eliminating the brackets (portions of the

draft text where the FTAA countries were not in agreement) from the draft text, to the

maximum extent possible. Ministers also highlighted the need to foster dialogue with

civil society (i.e., nongovernmental entities, institutions, and organizations), and

reiterated the importance of the provision of technical assistance to smaller economies

to facilitate their participation in the FTAA.18

The Third Summit of the Americas was held April 20-22, 2001, in Quebec City,

Canada. At that meeting, the heads of state of the FTAA countries confirmed their

intention to conclude FTAA negotiations no later than January 2005, and to seek entry

into force of the agreement as soon as possible thereafter, but by no later than

December 2005. To that end, the heads of state committed to initiate tariff negotiations

no later than May 2002. The heads of state also agreed to make available to the public

the consolidated draft text of the FTAA agreement, which was done on July 3, 2001.19

USTR subsequently issued a Federal Register notice inviting public comments on the

draft FTAA text.20 The FTAA committee of government representatives on the

participation of civil society also subsequently issued its third open invitation to civil

society for public comments on all aspects of the FTAA.21

17 For a description of FTAA developments through 2000, see USITC, The Year in Trade, 2000,

USITC Publication 3428, pp. 3-7 to 3-9.

18 Sixth Meeting of Ministers of Trade of the Hemisphere, Ministerial Declaration, Apr. 7, 2001,

found at Internet address http://www.ftaa-alca.org/ministerials/BAmin_e.asp, retrieved Feb. 11, 2002.

19 The draft agreement is available at Internet address http://www.ftaa-alca.org/alca_e.asp.

20 66 F.R. 36614.

21 FTAA committee of government representatives on the participation of civil society, “Open

Invitation to Civil Society in FTAA Participating Countries,” FTAA.soc/09, Nov. 1, 2001, found at Internet

address http://www.ftaa-alca.org/alca_e.asp, retrieved Feb. 11, 2002.
3-10

The TNC held its 9th meeting on September 26-28, 2001, in Managua, Nicaragua. At

that meeting, the TNC reviewed the progress to date in the negotiating groups, and

provided guidelines to the groups aimed at promoting the participation of smaller and

less developed countries in the FTAA process through such means as technical

assistance and capacity building.22

United States-Chile Free Trade Agreement Negotiations

Negotiations for a United States-Chile Free Trade Agreement (FTA) began in

Washington, D.C., on December 6, 200023—nearly 6 years after the initial plan for

an FTA with Chile.24 With negotiations under way, President Bush and Chilean

President Ricardo Lagos stated in an April 2001 meeting that a U.S.-Chile FTA could be

completed by the end of that year25 although several key issues remained to be

addressed, reportedly including agriculture, intellectual property, labor, the

environment, and trade remedy laws.26 USTR released its draft environmental review

of the U.S.-Chile FTA for public comment on November 7, 2001.27

At their 10th round of negotiations in January 2002, lead negotiators for the United

States and Chile reported that an 11th round of negotiations was scheduled for April

2002 to address issues that had not been addressed in detail in the previous rounds,

including market access for both agricultural and industrial products, labor,

22 USTR. “Fact Sheet: Accomplishments of the FTAA TNC Meeting,” September 26-28, 2001, found

at Internet address http://www.ustr.gov/regions/whemisphere/2001-09-26_TNC.PDF, retrieved

Feb. 11, 2002.

23USTR, 2001 Trade Policy Agenda and 2000 Annual Report of the President of the United States on

the Trade Agreements Program, p. 192, found at Internet address http://www.ustr.gov, retrieved March

8, 2001; and Government of Chile, Ministry of External Relations, “Sintesis de las Negociaciones

Comerciales entre Chile y EEUU,” found at Internet address http://www.direcon.cl/acuerdos/

acuerdos_comerciales/negociacion/index.htm, retrieved Mar. 8, 2001.

24 The leaders of the United States, Canada, and Mexico announced on Dec. 11, 1994, their

intention to begin negotiations for Chile’s eventual accession to NAFTA. Negotiations began in 1995 and

several negotiating rounds were held during that year, but negotiations eventually came to a standstill

due to Chilean concerns about the U.S. inability to secure so-called fast-track negotiating authority. For

further discussion, see USITC, The Year in Trade, 2000, June 2001, publication No. 3428, p. 4-53.

25 The White House, “Remarks by the President in Photo Opportunity with President Lagos of Chile,

The Oval Office,” Office of the Press Secretary, Apr. 16, 2001.

26 “Bush, LagosWant to See U.S.-Chile FTA Done by End of Year,”Inside U.S. Trade, Apr. 20, 2001.

27 Pursuant to Executive Order 13141 of Nov. 18, 1999 (64 F.R. 63169), the United States requires

that an environmental review be conducted of certain major trade agreements. USTR and the White

House Council on Environmental Quality oversee implementation of the Executive Order. Seventeen U.S.

government agencies participate in the review process. The Trade Policy Review Group (TPRG) and the

Trade Policy Staff Committee (TPSC), administered and chaired by USTR, are the subcabinet interagency

trade policy coordination groups that supervise the environmental review process. Consultations also are

conducted with the U.S. Congress, advisory committees, state and local government officials, and the

public regarding the potential environmental concerns and benefits associated with the FTA. USITC is a

nonvoting member of the TPSC and an observer at TPRG meetings. USTR initiated the environmental

review process for the U.S.-Chile FTA on Dec. 19, 2000, through a request for public comment on the

scope of the review (65 F.R. 79442).
3-11

environment, dispute settlement, and investment. A 12th round of negotiations was

scheduled for May 2002.28

U.S. exports to Chile totaled $3.2 billion in 2001, a decline of 11.3 percent from 2000,

while U.S. imports from Chile totaled $3.3 billion, a 0.7 percent increase from 2000.

Chile ranked as the 33rd largest world export market for the United States in 2001,

behind Turkey and Sweden, but ahead of South Africa and Russia. Chile ranked as the

39th largest U.S. supplier in 2001, behind Denmark and Finland, but ahead of

Honduras and Turkey.29

Asia Pacific Economic Cooperation forum

Since its inception in November 1989, the Asia Pacific Economic Cooperation forum

(APEC) has grown into a regional institution of 21 members. Organizationally, APEC

has some 16 special committees and working groups whose work is overseen by Senior

Officials. APEC holds Leaders’ meetings and meetings of trade and economic

Ministers annually. APEC’s chairmanship rotates among the members. In 2001, China

held the chairmanship and hosted the Leaders’ and Ministerial meetings during

October 17-21 in Shanghai.30

Since 1997, APEC has focused on the Osaka Action Agenda (OAA), a blueprint for

implementing the Bogor goals of trade and investment liberalization, business

facilitation, and economic and technical cooperation.31 This work has met with mixed

results. The developing economies believe that liberalization has been

over-emphasized in the APEC agenda. These economies want economic and technical

cooperation including human resource development and capacity building.32

In 2001, APEC’s Leaders and Ministers agreed to combat terrorism through an

enhanced liberalization drive following the September 11 terrorist attacks. The officials

also called for the launch of a new trade liberalization round at the World Trade

Organization.33 This was a reiteration of APEC’s commitment in 2000. The statement

on terrorism was important because APEC was the first major international meeting

since the terrorist attacks. This was the first political statement by the organization and it

28 USTR, “Chile and the United States Agree on Further Rounds of FTA Negotiations,” press release

2002-11, Jan. 25, 2002; and “Chile and the United States Agree on Further Rounds of FTA Negotiations,”

press release 2002-26, Feb. 28, 2002.

29 Trade data obtained from USITC Data Web, found at Internet address

http://dataweb.usitc.gov/, retrieved Feb. 25, 2002.

30 U.S. Department of State, “The United States and Asia-Pacific Economic Cooperation (APEC),”

found at Internet address http://usinfo.state.gov/regional/ea/apec, retrieved Oct. 18, 2001.

31 For background information on the OAA or Bogor Declaration, see USITC, The Year in Trade:

OTAP, 1995, USITC publication 2971, pp. 36-38, and USITC, The Year in Trade: OTAP, 1994, USITC

publication 2894, pp. 35-39.

32 U.S. Department of State, “Fact Sheet: APEC Overview and Background,” found at Internet

address http://usinfo.state.gov/regional/ea/apec/apecall.htm, retrieved Oct. 18, 2001.

33 U.S. Department of State, “The Thirteenth APEC Ministerial Meeting, Shanghai, Oct. 17-18,”

found at Internet address http://usinfo.state.gov/admin/022/wwwhapecmin2001.html, retrieved

Oct. 18, 2001.
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provided an opportunity for the region to show that it is working together. Many APEC

representatives stressed the need for pushing ahead with trade liberalization,

especially since the global economy is moving towards recession.34

With regard to other matters, APEC Leaders indicated that they are “determined to

work together for a more dynamic and prosperous Asia Pacific by promoting

sustainable economic growth, sharing the benefits of globalization and the New

Economy, and advancing trade and investment liberalization and facilitation.”35 In

this regard, the Leaders noted that they intended to adopt pro-growth fiscal and

monetary policies. In addition, they noted the importance of APEC’s work towards

more open and stronger economies.

The Leaders welcomed the progress that APEC has made in advancing Ecotech36

goals and commended the submission of Ecotech Action Plans by individual member

economies. Ministers were asked to expand on the Ecotech Action Plans in the future. In

other areas of Ecotech, the Leaders endorsed the APEC Strategy for Combating

Infectious Disease. Ministers were instructed to build on APEC’s Integrated Plan of

Action for SMEs.37

In the area of e-commerce, APEC’s goal is to build towards a digital society that will

bring equal opportunities and widely shared benefits for all member economies and

individuals.38

APEC acknowledges that there is ongoing debate on the benefits and costs of

globalization. According to APEC Leaders, “The time has come for APEC to come

forward and lead the public debate in a constructive manner.” As such, APEC officials

are instructed to convene an APEC Dialogue on Globalization and Shared Prosperity

focusing on structural adjustment and its impact. APEC is to reach out to businesses,

including small and medium-sized enterprises to ensure that they participate and

benefit from the APEC process.39

In the Shanghai Accord, attached to the Leaders’ statement, APEC Leaders committed

to:

H broadening and updating the OAA to reflect fundamental changes in the

global economy through implementation of relevant aspects of e-APEC

strategy;

34 “APEC Ministers to Aim for New Trade Talks Launch in Nov.,” Tokyo Jiji Press, Oct. 17, 2001,

found at Internet address http://199.221.15.211/egi-bin/cqeg. . .ofiled]=1&CQ_SAVE[Cache_

Counter]=2, retrieved on Oct. 17, 2001.

35 APEC, “Leaders’ Declaration,” Oct. 21, 2001.

36 In 1996, APEC adopted a Framework for Strengthening Economic Cooperation and

Development and agreed that the goals of ECOTECH are: to attain growth and equitable development in

the Asia-Pacific region, to reduce disparities among APEC economies, to improve economic and social

well-being of the people, and to deepen the spirit of the community in the Asia-Pacific. APEC Secretariat,

found at Internet address http://apec.sec.org.sg/, retrieved on Apr. 8, 2002.

37 Ibid.

38 Ibid.

39 Ibid.
3-13

H adopt a pathfinder approach in advancing some APEC initiatives. Use of

“pathfinder initiatives” based on a group of members piloting the

implementation of the initiatives will invigorate progress towards the Bogor

goals and provide a framework to encourage broader participation through

enhanced capacity-building programs.

H promoting the adoption of appropriate trade policies for the New Economy.

APEC officials are instructed to undertake by mid-2002 an exchange of

appropriate trade policy information, such as information on liberalization of

services and adherence to tariff and intellectual property regimes.

H follow-up on trade facilitation principles. Ministers are instructed to identify by

the 2002 Ministerial meeting concrete actions and measures to implement the

APEC Trade Facilitation Principles by 2006 in close partnership with the

private sector.

H adoption of transparency principles. Ministers are directed to pursue the

implementation of APEC’s agreed transparency principles, taking into

account economies’ specific circumstances and report on the progress in their

Individual Action Plans (IAP) in 2002 and thereafter.

H strengthening the IAP Peer Review Process. Leaders encouraged member

economies to volunteer their IAPs for peer review on the basis of the new

approach.

H strengthening Ecotech and capacity-building efforts. Leaders recognize the

importance of substantially enhancing the profile of Ecotech and improving

coordination and management of Ecotech activities in all fora.40

Mexico will host APEC’s 14th Ministerial Meeting in 2002, followed by Thailand in

2003, Chile in 2004, and Korea in 2005.41

African Growth and Opportunity Act

On May 18, 2000, the President signed into law the African Growth and Opportunity

Act (AGOA), Title 1 of the Trade and Development Act of 2000 (Public Law 106-200).

The Act authorizes the President to provide duty-free treatment under GSP for certain

articles that are products of designated sub-Saharan African countries if, after

receiving advice from the United States International Trade Commission (USITC), he

determines that such articles are not import sensitive in the context of imports from

40 APEC, “APEC Economic Leaders’ Declaration,” Shanghai, China, Oct. 21, 2001, found at

Internet address http://www.apecsec.org.sg/virtuallib/econlead/china.html, retrieved Oct. 22, 2001.

41 U.S. Department of State, “The Thirteenth APEC Ministerial, Meeting, Shanghai, Oct. 17-18,”

found at Internet address http://usinfo.state.gov/admin/022/wwwhapecmin2001.html, retrieved

Oct. 18, 2001.
3-14

these countries.42 The legislation authorizes the President to designate countries as

eligible to receive the trade benefits of AGOA if they are determined to have

established, or are making continual progress toward establishing a market-based

economy, the rule of law, the elimination of barriers to U.S. trade and investment,

economic policies to reduce poverty, the protection of internationally recognized

workers’ rights, and a system to combat corruption. The benefits of AGOA are

potentially available to 48 countries in sub-Saharan Africa.43

On October 2, 2000, the President issued Proclamation 7350 designating 34

sub-Saharan African countries as eligible for the trade benefits of AGOA. On January

18, 2001, Swaziland was designated as the 35th AGOA-eligible country.44

Sub-Saharan African beneficiary countries must undergo an annual review of their

status. This annual determination signifies which countries are making continued

progress toward a market-based economy, rule of law, free trade, economic policies

that will reduce poverty, and protection of workers’ rights. On December 31, 2001, the

President approved the designation of 35 sub-Saharan African countries as eligible

for tariff preferences under the AGOA annual review.45

Some $7.6 billion in duty-free imports entered under the AGOA program in 2001,

accounting for almost 45 percent of total U.S. imports from AGOA beneficiaries.

Nigeria was the leading AGOA beneficiary in 2001, followed by Gabon and South

Africa. AGOA imports were dominated by U.S. purchases of energy-related products

in 2001. The remaining AGOA imports were comprised of smaller quantities of textiles

and apparel, transportation equipment, minerals and metals, and agricultural

products. Appendix table A-39 shows the leading AGOA products or product

categories in 2001, and table A-40 shows the overall country distribution of AGOA

benefits.

Apparel Provisions

AGOA provides for duty-free and quota-free access to the U.S. market without limits

for apparel made in beneficiary sub-Saharan African countries from U.S. fabric,

yarn, and thread. It also provides for substantial growth of duty-free and quota-free

apparel imports made from fabric produced in sub-Saharan African beneficiary

42 In October 2000, the USITC issued a report on Advice on Providing Additional GSP Benefits for

Sub-Saharan Africa. After taking into account the Commission’s advice and the results of a public

hearing, on December 21, 2000, the President issued Proclamation 7388 extending duty-free treatment

under the Generalized System of Preferences (GSP) to AGOA-eligible countries for more than 1,800

tariff line items in addition to the standard GSP list of approximately 4,600 items. The legislation

significantly expands GSP benefits for eligible sub-Saharan African countries until September 30, 2008.

Sub-Saharan African beneficiary countries are also exempted from the competitive-need limitations of

the GSP program.

43 “The African Growth and Opportunity Act,” found at Internet address http://www.agoa.gov/

About_AGOA/about_agoa.html, retrieved Feb. 13, 2002.

44 66 F.R. 15.

45 White House, “President Approves Tariff Preferences,” found at Internet address http://www.

white house.gov/news/releases/2002/20020102-4.html, retrieved Feb. 11, 2002.
3-15

countries. Apparel imports made with African fabric and yarn are subject to a cap of

1.5 percent of overall U.S. apparel imports, growing to 3.5 percent of overall imports

over an 8-year period. The cap is measured in square meter equivalents (SME’s), and

has no dollar equivalent. Under a Special Rule for Lesser Developed Beneficiary

Countries (LDBC), those countries with a per capita GNP under $1,500 in 1998 will

enjoy duty-free access for apparel made from fabric originating anywhere in the

world until September 30, 2004. Apparel imported under the Special Rule is counted

against the cap.46 The U.S. Secretary of Commerce is directed to monitor apparel

imports on a monthly basis to guard against surges. If increased imports are causing or

threatening serious damage to the U.S. apparel industry, the President is to suspend

duty-free treatment for the article in question. Preferential treatment for apparel took

effect on October 1, 2000, however beneficiary countries must first establish that they

have effective visa and enforcement mechanisms to prevent illegal transhipment. As of

April 23, 2002, the U.S. Trade Representative has determined that 17 sub-Saharan

African countries are eligible for the AGOA apparel provisions, and 12 of these

countries are eligible for the Special Rule for apparel benefits.47

U.S. exports to the AGOA beneficiary countries in 2001 totaled $6.2 billion, or more

than 90 percent of U.S. exports to sub-Saharan Africa. Principal export items were

aircraft and parts, machinery and mechanical appliances, motor vehicles and vehicle

parts, electrical machinery and equipment, and cereals. U.S. imports from the 35

AGOA beneficiaries in 2001 were $17.3 billion or about 82 percent of total imports

from sub-Saharan Africa. The leading import items were mineral fuels and oils,

precious metals and minerals, articles of apparel and clothing accessories, ores, and

organic chemicals. Apparel imports from AGOA beneficiary countries increased by

29 percent in 2001 to $938.7 million. The countries that had the largest increases in

apparel imports were Lesotho (an increase of $76.6 million or 54.7 percent),

Madagascar (an increase of $68.7 million or 62.7 percent), South Africa (an increase

of $32.5 million or 23.1 percent), Kenya (an increase of $20.5 million or 46.7

percent), and Swaziland (an increase of $16.2 million or 50.9 percent).48

AGOA Forum

The first U.S.-Sub-Saharan African Trade and Economic Cooperation Forum was held

in Washington, D.C., during October 29-30, 2001. The Forum was hosted by the

Secretaries of State, Treasury, and Commerce, and the U.S. Trade Representative.

Trade, Foreign Affairs, and Finance Ministers from 35 eligible sub-Saharan African

46 “The African Growth and Opportunity Act”, found at Internet address http://www.agoa.

gov/About_AGOA/about-agoa.html, retrieved Feb.13, 2002.

47 The 17 countries are Botswana, Cameroon, Ethiopia, Ghana, Kenya, Lesotho, Madagascar,

Malawi, Mauritius, Mozambique, Namibia, Senegal, South Africa, Swaziland, Tanzania, Uganda, and

Zambia. Four of these countries–Botswana, Mauritius, Namibia, and South Africa–are not eligible for the

Special Rule for apparel benefits. See “African Growth and Opportunity Act Country Eligibility List,”

found at Internet address http://www.agoa.gov/Eligibility/eligibility.htm, retrieved Mar. 23, 2002.

48 See chapter 5, for additional information.
3-16

countries participated, along with representatives from African regional

organizations. President Bush addressed the forum, which he established on May 16,

2001, to complement the African Growth and Opportunity Act.49 The Forum was

established as a vehicle for regular dialogue between the United States and

sub-Saharan African countries on issues of economics, trade, and investment. In his

address, the President announced the creation of a $200 million Overseas Private

Investment Corporation (OPIC) support facility that will give American firms access to

loans, guarantees, and political risk insurance for investment projects in sub-Saharan

Africa. He also announced the establishment of a Trade and Development Agency

(TDA) regional office in Johannesburg and the Trade for African Development and

Enterprise Program, both to provide guidance and assistance to governments and

companies that seek to liberalize their trade laws, improve the investment

environment, and take advantage of AGOA.

The focus of the Forum was on discussing further measures that the United States and

sub-Saharan African countries can jointly take to stimulate economic growth and

trade, enhance democracy and good governance, and combat HIV/AIDS. During the

Forum, U.S. officials emphasized the United States’ strong commitment to

sub-Saharan Africa and noted the initial success of AGOA. United States and

sub-Saharan African delegates underscored the necessity of good governance, rule

of law, and political freedom to attract investment and achieve economic growth. The

use of African co-chairs and active question and answer sessions allowed

sub-Saharan African officials the opportunity to speak openly about the benefits and

challenges of AGOA.50

On October 30, 2001, U.S. Trade Representative Zoellick signed two agreements–a

U.S.-Nigerian Joint Declaration on Electronic Commerce and a Trade and Investment

Framework Agreement (TIFA) between the United States and the Common Market for

Eastern and Southern Africa (COMESA). The TIFA represents the first agreement

between the United States and a regional organization in sub-Saharan Africa.51

49 USTR, “President Bush and USTR Zoellick Open First U.S.-Sub-Saharan Africa Trade Forum,”

found at Internet address http://www.ustr.gov/releases/2001/10/01-90.htm, retrieved Feb. 15, 2002.

50 “The First U.S.-Sub-Saharan African Trade and Economic Cooperation Forum,” found at Internet

address http://www.agoa.gov/AGOA_Update/agoa_update.html, retrieved Feb. 19, 2002.

51 USTR, “Remarks on the Signing of the U.S.-COMESA Trade and Investment Framework

Agreement,” Oct. 29, 2001.
4-1

CHAPTER 4

U.S. Relations With Major Trading

Partners

This chapter reviews bilateral trade relations and issues with eight major U.S. trading

partners during 2001: the European Union (EU), Canada, Mexico, Japan, China,

Taiwan, Korea, and Brazil. Appendix tables A-1 through A-24 provide detailed

information on U.S. trade with these eight major partners.

European Union

The United States and the EU continued to address an active trade agenda in 2001,

marked both by agreements and disputes. In April 2001, U.S. and EU officials reached

an agreement that settled the longstanding dispute over the EU’s banana import

regime. The United States and EU also successfully coordinated their positions to help

launch a new WTO round of multilateral trade negotiations in Doha in November

2001. To address technical barriers to trade, the two sides made progress in

developing guidelines for regulatory cooperation.

However, problem areas remained, including the EU biotechnology regulatory

approach, U.S. steel policy, and U.S. special tax treatment of foreign sales

corporations (FSCs). Since 1998, the EU has imposed a moratorium on approvals of

agricultural biotechnology products, which has adversely affected U.S. exports and

delayed the development and implementation of new biotechnologies. In the case of

steel, in December the USITC submitted its findings and remedy recommendations in its

global safeguard investigation regarding steel imports, which the USITC conducted at

the request of the USTR and the Committee on Finance of the U.S. Senate.1 The EU

quickly rejected “any unilateral restriction on [U.S. steel] imports” and warned that

“the EU would have no alternative but to examine all options, both multilateral and

bilateral, to protect the EU industry from the consequences of U.S. action.”2

In potentially the largest U.S.-EU dispute in terms of trade affected, the WTO

dispute-settlement process continued throughout 2001 in response to an EU complaint

that U.S. tax treatment of FSCs violates U.S. WTO obligations. The United States

repealed the FSC rules and enacted the Extraterritorial Income Exclusion Act of 2000

(ETI), but in August 2001, the WTO found the ETI to be WTO-inconsistent, and the

United States appealed the finding.

1 For more information, see chapter 5.

2 European Commission, “EU Ready to Take All Necessary Steps to Keep Foreign Markets Open to

European Steel and to Prevent Flood of Imports Into EU if US Goes Down Blatantly Protectionist Road,”

press release IP/01/1831, Dec. 13, 2001; and Pascal Lamy, European Commissioner for Trade, “Steeling

the EU-US Relationship for the Challenges Ahead,” speech before the Woodrow Wilson International

Center for Scholars, Washington, D.C., Jan. 25, 2002.
4-2

In addition to its active trade relationship with the United States, the EU addressed

major domestic initiatives that have implications for the United States. During the year,

the EU made extensive preparations for the introduction of euro notes and coins on

January 1, 2002, in 12 of the 15 EU member states (all but Denmark, Sweden, and the

United Kingdom). The euro is the single currency of European Monetary Union. Also,

the EU continued to conduct intense negotiations with countries that have applied to

join the EU. Up to 10 of these countries, primarily Central and Eastern European

countries, could join the EU as early as 2004.

U.S. trade with the EU totaled $366 billion in 2001, making it the United States’ largest

trading partner. In 2001, the EU was both the number one destination for U.S. exports

and the largest source of U.S. imports. U.S. exports to the EU declined to $147 billion in

2001, down 3 percent from 2000. U.S. imports from the EU remained fairly stable at

$219 billion, resulting in a $72 billion U.S. trade deficit with the EU in 2001. 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 aircraft and aircraft

parts. U.S.-EU trade data are shown in tables A-1 through A-3.

Bananas

On April 11, 2001, the United States and EU reached an agreement ending a

longstanding dispute over the EU’s banana import regime. On July 1, 2001, the EU

implemented a new system for importing bananas and the United States lifted

retaliatory tariffs imposed in 1999 on imports from the EU.

Background3

On July 1, 1993, the EU implemented a new EU-wide banana import regime that

granted preferential treatment to bananas from domestic producers and from

producers in former European colonies in Africa, the Caribbean, and the Pacific (ACP)

countries.4 The EU banana regime imposed duty and quota restrictions on imports of

bananas from non-ACP countries, largely in Latin America. Also, the EU licensing

system adversely affected U.S. banana distribution companies, such as Chiquita

Brands International and Dole Foods, which had historically distributed the bulk of

Latin American bananas to the EU.

Since 1993, a series of GATT and WTO dispute-settlement panels have found the EU

regime for the importation, sale, and distribution of bananas to be contrary to WTO

rules. In 1999, the WTO authorized the United States to suspend concessions to the EU

valued at $191.4 million. To replace the WTO-inconsistent regime, the EU proposed a

3 For more details, see USITC, The Year in Trade: OTAP, 2000, USITC publication 3428, pp. 4-7 to

4-12; and USITC, The Year in Trade: OTAP, 1999, USITC publication 3336, pp. 56-57.

4 EC Regulation 404/93, Official Journal, L 47, Feb. 25, 1993.
4-3

transitional system of tariff-rate quotas followed by a tariff-only regime in 2006.5 The

European Commission recommended that import licenses be allocated on a first come,

first served (“FCFS”) basis.6 However, both the United States and Latin American

exporters rejected the FCFS system. The United States urged the European Commission

to allocate licenses based on a historical reference period.7

Developments during 2001

In January 2001, the EU formally approved a two-phase banana import regime.8 In

February the EU delayed the target implementation date of the new regime from April

1 to July 1, 2001. Meanwhile, negotiations between the United States and EU

continued. However, progress was slow, and U.S. officials warned the EU that the

Congress was placing pressure on the Administration to resolve the issue or else the

so-called carousel law–calling in response for the rotation of EU products that would

be subject to high duties–would be implemented.9

A range of topics were at issue, according to reporting by the United States

Department of State.10 Most parties to the dispute, including the United States, the ACP

countries, and Latin American producers (except Dole Foods and Ecuador) strongly

opposed the FCFS system. The United States alleged that the particular FCFS regime

proposed by the European Commission was still not consistent with the EU’s WTO

obligations. The United States also supported increased access for Latin American

bananas to the EU and a limited share of import licenses to be allocated to so-called

newcomers.11 (The newcomer category accommodates license holders, generally

European, which would not qualify for licenses if they were allocated based on a

historical reference period.)

On April 11, 2001, U.S. and EU officials reached an agreement ending the

longstanding dispute. The agreement endorsed the two-phase approach: a

transitional system of tariff-rate quotas followed by a tariff-only regime to be

implemented by January 1, 2006. However, instead of allocating import licenses on a

5 European Commission, “Commission Proposes to Modify the EU’s Banana Regime,” press release

IP/99/828, Brussels, Nov. 10, 1999. Details of the proposal were discussed in USITC, The Year in Trade:

OTAP, 1999, USITC publication 3336, pp. 56-57.

6 European Commission, “Communication from the Commission to the Council on the ‘First Come,

First Served’ Method for the Banana Regime and the Implications of a Tariff Only System,” Oct. 4, 2000,

found at Internet address http://europa.eu.int/comm/trade/miti/dispute/banana/index_en.htm,

retrieved Mar. 6, 2001.

7 U.S. Department of State telegram, “Bananas Demarche: USG Opposes EU Proposal,” message

reference No. 192887, prepared by USTR, Washington, DC, Oct. 5, 2000.

8 EC Regulation 216/2001, adopted January 29, 2001, Official Journal, L 31, Feb. 2, 2001.

9 U.S. Department of State telegram, “US-EU Adams and DOC DAS Ludolph Discuss U.S.-EU and

U.S.-Spain Trade Issues with GOS Trade Officials,” message reference No. 1368, prepared by U.S.

Embassy, Madrid, Mar. 28, 2001.

10 See, for example, U.S. Department of State telegram, “Bananas: Demarche to EU Member

States,” message reference No. 241179, prepared by U.S. Department of State, Washington, D.C.,

Dec. 22, 2000; and U.S. Department of State telegram, “Frazier Response to Dole Letter,” message

reference No. 17337, prepared by U.S. Department of State, Washington, D.C., Jan. 31, 2001.

11 Ibid.
4-4

FCFS basis during the transitional phase, the EU agreed to distribute import licenses on

the basis of past trade. Also, the EU agreed to adjust the quantities in the quotas to

expand access to the EU market for Latin American bananas and to guarantee access

for a specific share of ACP bananas.12

As reported widely in the press, Ecuador requested consultations with the EU to clarify

the terms of the agreement soon after the U.S.-EU agreement was reached.13 Ecuador

had supported a FCFS import licensing system and was concerned that the majority of

its operators would be disadvantaged by a system based on historical references.14

On April 30, 2001, the EU and Ecuador reached an understanding that established

certain conditions for the allocation of licenses in the newcomer category, which are

intended to favor Ecuadoran suppliers.15

According to the terms of the agreement, the first phase of the EU’s new banana import

regime was to be implemented in two steps.16 On July 1, 2001, the EU implemented the

first step, and established three tariff-rate quotas open to all banana exporters (see

table 4-1); the first two quotas (quotas A and B) are managed as a single quota (quota

AB) of 2.553 million tons. As of July 1, 2001, import licenses for 83 percent of quota AB

are allocated to qualified traditional operators based on market shares registered

during the 1994-96 reference period. The remaining 17 percent of import licenses are

distributed to so-called newcomers.17

On January 1, 2002, the EU implemented the second stage of phase I of the new

banana regime.18 The second stage called for the EU to transfer 100,000 tons of

bananas from quota C to quota B, bringing the total of quota AB to 2.653 million tons.

Quota C fell to 750,000 tons, but was reserved for bananas of ACP origin. The

allocation of import licenses based on a historical reference period that started under

the phase I first stage (July 1, 2001) is to continue until December 31, 2003; thereafter

licenses will be allocated according to usage of licenses issued since the second stage

was implemented (January 1, 2002).19

12 USTR, “Joint United States-European Union Release, U.S. Government and European

Commission Reach Agreement to Resolve Long-Standing Banana Dispute,” press release 01-23, Apr. 11,

2001.

13 Ecuador is the world’s largest banana exporter and bananas represent Ecuador’s second largest

export.

14 See, for example, two of the more detailed accounts: “Ecuador Seeks Changes in Banana Deal,

Threatens Consultations,” Inside U.S. Trade, Apr. 20, 2001; and “EU Members Unlikely to Block Banana

Deal as Ecuador Seeks Changes,” Inside U.S. Trade, Apr. 27, 2001, found at USITC Intranet address

http://www.usitc.gov/, retrieved on Jan. 10, 2002.

15 European Commission, Directorate for Trade, “Understanding on Bananas,” Brussels, Apr. 30,

2001, found at DG Trade website at Internet address http://europa.eu.int/comm/trade/miti/

dispute/understanding.htm, retrieved Feb. 13, 2002. This “Understanding on Bananas” is between the

EU and Ecuador.

16 EC Regulation 896/2001, adopted May 2, 2001, implements the banana import regime in line

with agreements reached with the United States and Ecuador in April.

17 European Commission, “Understanding on Bananas,” Inside U.S. Trade, Apr. 13, 2001, found at

the USITC Intranet, retrieved Jan. 10, 2002. This“Understanding on Bananas” is between the EU and the

United States.

18 EC Regulation 2587/2001, approved Dec. 19, 2001.

19 European Commission, “Understanding on Bananas,” Inside U.S. Trade, op. cit.
4-5

Table 4-1

EU banana import regime

Phases

Step 1: Regime implemented

July 1, 2001

Step 2: Modifications to the regime,

effective January 1, 2002

Phase I:

Transitional

tariff quota

Quota A: 2.2 million tons, at

75 euros/ton1

tariff quota

system Quota B: 0.353 million tons, at

75 euros/ton1

Quota B: 0.453 million tons, at

75 euros/ton1

Quota C: 0.850 million tons, at

300 euros/ton1

Quota C: 0.750 million tons at

zero duty

All quotas managed based on a

historical reference period

All quotas open to all bananas,

irrespective of origin

Quota C is reserved exclusively for

ACP bananas

Phase II:

Tariff-only system

Single tariff to be negotiated

consistent with GATT Article XXVIII

Entry into force no later than

January 1, 2006

1 The euros/ton tariff is the preference given to ACP bananas within each quota.

Source: Compiled by USITC staff from U.S.-EU Banana Agreement.

Phase II, the tariff-only phase of the agreement, is to be implemented in 2006. It

foresees a single tariff applied to Latin American bananas and duty-free treatment of

ACP bananas. Renegotiation of the new tariff between the EU and relevant banana

suppliers will take place under GATT Article XXVIII (Modification of Schedules). EU

Council approval will be required on the level of the tariff to be implemented on

January 1, 2006.

The provisions of the new banana regime require that WTO members grant to the EU

waivers from its GATT Article I (General Most-Favored-Nation Treatment) and GATT

Article XIII (Non-discriminatory Administration of Quantitative Restrictions) obligations

in order to legitimately implement the regime under WTO rules. Waivers of EU

obligations under both articles were finally granted at the WTO Third Ministerial

Conference at Doha, Qatar, in November 2001 after intense negotiations with Latin

American banana producers.20 The Article I waiver would permit the EU to confer

tariff preferences on banana imports from ACP countries, whereas the Article XIII

waiver would permit the EU to reserve a fixed quantity of bananas exclusively for ACP

countries.

The Latin American producers wanted assurances from the EU that their access to the

EU banana market would not diminish following implementation of the tariff-only

phase of the plan in 2006. Such a situation could occur if GATT Article XXVIII tariff

renegotiations resulted in a prohibitively high tariff on imports of Latin American

bananas. Under the terms of the waivers negotiated at Doha, the Latin American

countries will be allowed to request arbitration before the renegotiated banana tariff

20 European Commission, “Council Takes Final Step to Implement Agreement on Settlement of the

Banana Trade Dispute,” press release IP/01/1866, Brussels, Dec. 19, 2001, found at Internet address

http://europa.eu.int/comm/trade/miti/dispute/wn.htm, retrieved on May 7, 2002.
4-6

enters into effect. Should the arbitrator determine that the EU tariff binding does not

maintain at least the current level of market access for Latin American bananas, the EU

and complaining parties will enter into consultations. Should the parties not reach an

agreement, the Article I waiver with respect to bananas will cease to apply upon entry

into force of the new EU tariff-only regime.21

On July 1, 2001, the United States suspended the retaliatory tariffs it imposed in 1999

on EU products valued at $191.4 million. The U.S.-EU agreement of April 2001

provided that the United States could reimpose increased duties if the EU did not

complete phase I, step 2, and adjust the tariff rate quotas by January 1, 2002. Because

the EU implemented step 2 of the agreement as planned on January 1, 2002, the

United States permanently terminated the sanctions.22

Agricultural Biotechnology

U.S. exports of agricultural biotechnology (ag biotech) products face serious obstacles

in the EU market. In 1998, the EU imposed a moratorium on approvals for ag biotech

products. In addition, in 2001 the European Commission proposed new regulations,

including rules on labeling and traceability, which could further limit U.S. exports.

According to the U.S. Government, these restrictions are delaying the development

and implementation of new biotechnologies, which can raise farm productivity and

could play an important role in reducing poverty.23

Agricultural biotechnology generally refers to scientific techniques, in particular,

genetic engineering, that are used to introduce desired traits into plants, animals, or

microorganisms. Europeans refer to agricultural biotechnology products as

genetically modified organisms (GMOs). To date, only certain crops derived from

biotechnology have been marketed in the EU; no animal biotechnology products have

been approved.24 Potential benefits resulting from agricultural biotechnology include

reduced production costs and pollution associated with pesticide use; increased crop

resistance to droughts, floods, disease, and spoilage; and increased nutritional value

of foods.25

21 WTO, Ministerial Conference, Fourth Session, Doha, Nov. 9-14, 2001, “European

Communities–The ACP-EC Partnership Agreement,” Decision of Nov. 14, 2001, WT/MIN(01)/15; U.S.

Department of State telegram, “Chiquita Officials Raise EU Banana Waiver and Labor Concerns with

A/AS Gutierrez,” message reference No. 191569, prepared by U.S. Department of State, Washington,

D.C., Nov. 2, 2001; and “EU Waivers Approved as Latin Americans Drop Banana Demands,”Inside U.S.

Trade, Nov. 15, 2001, found at the USITC Intranet, retrieved Jan. 10, 2002.

22 66 F.R. 35689-35690.

23 For example, Alan Larson, Under Secretary of State for Economic, Business, and Agricultural

Affairs, speech before the Washington International Trade Association, Jan. 8, 2002 and U.S.

Department of State, Bureau of Public Affairs, Fact Sheet, “Healthy Harvests: Growth Through

Biotechnology,” Jan. 22, 2001

24 General Accounting Office, Concerns over Biotechnology Challenge U.S. Agricultural Exports,

June 2001, p. 5.

25 Alan Larson, Under Secretary of State for Economic, Business, and Agricultural Affairs, speech

before the Washington International Trade Association, Jan. 8, 2002.
4-7

U.S. farmers primarily grow three main biotechnology crops: corn, soybeans, and

cotton. Such products are directly exported or are used to produce a variety of

processed foods. To date, the product most affected by the EU moratorium is corn.

Several biotech varieties of corn are produced in the United States but have not been

approved for sale in the EU. Although the United States has traditionally exported

more soybeans than corn to the EU, soybean exports have not been disrupted. Only

one major biotech variety of soybeans is produced in the United States, and this variety

has been approved for sale in the EU. However, EU proposals in 2001 for new

regulations on GMOs are expected to burden U.S. soybean exports to the EU.26

The United States applies existing laws on food safety and environmental protection to

ag biotech products. In contrast, the EU has developed a distinct regime for regulating

such biotech products. This regime has been in effect since the early 1990s, but

continues to be updated and expanded. EU Directive 90/220 establishes the

procedures for gaining approval to market GMOs in the EU, which takes into account

any risks to human health or the environment.27 However, the EU has not authorized

the commercial release of any GMOs since 1998. In addition, some member states

have used the safeguard clause in the directive to ban certain genetically modified

products from their markets.

In July 2001, the EU proposed a new regulation on traceability28 and labeling of

GMOs. The EU claims traceability is necessary to verify labeling claims as well as to

facilitate the monitoring of effects on the environment and the withdrawal from the

market of genetically modified products if later deemed necessary. In general,

traceability requires operators, who buy and sell GMOs, to keep records to identify

from whom they purchased these products and to whom they sold them. The new

labeling proposal extends the current labeling rules to cover all biotech food and

feed,29 regardless of whether any genetically modified components can be detected,

which can often occur in items such as highly processed foods.30

The EU’s regulatory framework as well as the moratorium on GMO approvals result

primarily from strong public resistance in the EU to agricultural biotechnology. This

resistance stems from concerns over the safety of biotech foods as well as to the

absence of identifiable benefits, which currently tend to accrue to the producer rather

than the consumer.31 According to one source, faced with an abundance of food, EU

consumers do not consider the major argument in favor of genetically modified

26 General Accounting Office, Concerns over Biotechnology Challenge U.S. Agricultural Exports,

June 2001, pp. 10-11.

27 This directive was recently updated by Directive 2001/18, which will enter into effect in October

2002.

28 Traceability refers to the ability to trace biotech products through all stages of the production and

distribution chains.

29 Genetically modified seeds are covered in a separate directive.

30 European Commission, “Questions and Answers on the Regulation of GMOs in the EU,”

Memo/01/277, Oct. 29, 2001, p. 6.

31 For example see, Tassos Haniotis, European Commission, “Regulating Agri-Food Production in

the US and the EU,” AgBioForum, vol. 3, no. 2&3, 2000, p. 1, found at Internet address

http://www.agbioforum.org, retrieved Jan. 15, 2002; and GAO, “Concerns over Biotechnology

Challenge U.S. Agricultural Exports,” June 2001, pp. 11 and 12.
4-8

foods–to alleviate hunger–particularly credible.32 According to an EU official, EU

consumers do not regard biotech foods as cheaper, tasting better, or providing a value

added and the EU consumer, when given a choice, will choose a biotech-free food.33

According to EU officials, for a variety of reasons EU consumers are more risk averse

than Americans on food safety.34 Such concerns have been magnified recently with

food scares in the EU, including the bovine spongiform encephalopathy (BSE) crisis or

mad-cow disease, and public perceptions of governments’ slow response.35

Accordingly, the European Commission claims that to reassure the public on food

safety the EU regulatory regime for GMOs must provide “a high level of protection [for

human health and the environment], consumer choice, and transparent, uniform and

efficient authorization procedures....”36

U.S. corn exports to the EU have been adversely affected since the EU moratorium on

GMO approvals began in 1998.37 Not only have biotech varieties of corn have been

blocked because of the difficulty in avoiding commingling conventional and biotech

varieties in the U.S. grain handling system but all U.S. exports to the EU of conventional

corn have declined. Furthermore, U.S. officials argue that the proposed EU rules on

traceability and labeling are burdensome, discriminatory, and unworkable, and will

hurt U.S. exports of approved GMOs, including soybeans. For example, the proposal

does not require the labeling of products like wine and cheese, typically European in

origin, which are manufactured using enzymes produced through biotechnologies. In

addition, the requirement to label food that has been derived from biotech products

but that contains no detectable biotech ingredients “undermines credibility in the

European system” since it is impossible to use tests to verify such labels.38 U.S.

32 George Gaskell, London School of Economics, “Agricultural Biotechnology and Public Attitudes

in the European Union,” AgBioForum, vol. 3, no. 2&3, 2000, p. 8, found at Internet address

http://www.agbioforum.org, retrieved Jan. 15, 2002.

33 Tony Van der Haegen, European Commission Delegation in Washington, “What the US Should

Know About Biotech Imports in the EU–See It the EU Way,” speech before Women In International Trade,

Washington, D.C., Sept. 27, 2001.

34 For example, see George Gaskell, London School of Economics, “Agricultural Biotechnology and

Public Attitudes in the European Union,” AgBioForum, vol. 3, no. 2&3, 2000, found at Internet address

http://www.agbioforum.org, retrieved Jan. 15, 2002; John B. Richardson, European Commission, “EU

Agricultural Policies and Implications for Agrobiotechnology,” AgBioForum, vol. 3, no. 2&3, 2000,

found at Internet address http://www.agbioforum.org, retrieved Jan. 15, 2002; and Tony Van der

Haegen, European Commission Delegation in Washington, “What the US Should Know About Biotech

Imports in the EU–See It the EU Way,” speech before Women In International Trade, Washington, D.C.,

Sept. 27, 2001.

35 John B. Richardson, European Commission, “EU Agricultural Policies and Implications for

Agrobiotechnology,” AgBioForum, vol. 3, no. 2&3, 2000, found at Internet address

http://www.agbioforum.org, retrieved Jan. 15, 2002.

36 David Byrne, European Commissioner for Health and Consumer Protection, “New Technologies

in Agriculture - Biotechnology,” informal Agriculture Council meeting with Alden Biesen, Sept. 18, 2001.

37According to the Economic Research Service (ERS), the volume of U.S. corn exports to the EU ell 90

percent between 1995 and 1998. “The EU represents the one documented loss of U.S. corn exports

resulting from issues related to biotech products.” ERS, “Biotechnology: Implications for U.S. Corn and

Soybean Trade,” Agricultural Outlook, April 2000, found at Internet address

http://www.ers.usda.gov/publications/, retrieved Jan. 31, 2002.

38Alan Larson, Under Secretary of State for Economic, Business, and Agricultural Affairs, “The U.S.

and the European Union,” remarks in press conference at the U.S. Mission to the European Union,

Brussels, Belgium, Dec. 12, 2001.
4-9

producers claim that the proposed rules are burdensome, costly, and possibly

unworkable because of the documentation requirements and the difficulties associated

with separating conventional from biotech crop varieties to meet labeling

requirements.39 The U.S. Government supports science-based, rules-based

regulations to avoid politicization of the issue.40 According to the United States, the

EU’s moratorium and complex regulatory regime are delaying the implementation of

agricultural biotechnology in the developing world, where it could play an important

role in relieving hunger and reducing poverty.41

The United States is urging the EU to end the moratorium on GMO approvals. However

many EU member states are opposed to the U.S. position, and do not support an end to

the moratorium. EU officials suggest that progress could be made toward the end of

2002, after a new directive extending and expanding Directive 90/220 enters into

effect in October.42 However, some member states insist that the moratorium cannot

be lifted until the labeling and traceability regulation is operational, which could take 2

years.43

In the meantime, the European Commission published in early 2002 a policy paper

presenting its vision for developing life sciences and biotechnology in the EU over the

next 10 years.44 The EU argues that biotechnology plays an important role in reaching

the EU’s goal of becoming “the most competitive and dynamic knowledge-based

economy in the world.”45 The paper includes an action plan, which sets out a

framework for developing an “effective and coherent” biotechnology policy and

strengthening the EU’s biotechnology sector. The action plan covers a range of topics,

including education and research programs, transparency and coordination of

policies and programs, implementation and enforcement of biotechnology regulation,

and international collaboration.

39 General Accounting Office, Concerns over Biotechnology Challenge U.S. Agricultural Exports,

June 2001, p. 10.

40U.S. Department of State telegram, “EU Biotech Regulatory Proposals–Initiating Discussions With

Like-Minded Countries,” message reference No. 153945, prepared by U.S. Department of State,

Washington, D.C., Sept. 6, 2001.

41Alan Larson, Under Secretary of State for Economic, Business, and Agricultural Affairs, “U.S.-EU

Relations,” remarks to Transatlantic Policy Network, Washington, D.C., Nov. 30, 2001.

42 Pascal Lamy, European Commissioner for Trade, “Steeling the EU-US Relationship for the

Challenges Ahead,” remarks at Woodrow Wilson International Center, Washington, D.C., Jan. 25,

2002.

43 Europe Information Service, “Environment Council: GMO Moratorium Stays,” European Report,

Oct. 31, 2002, p. IV-6.

44 European Commission, “Life Sciences and Biotechnology - A Strategy for Europe,”

Communication from the Commission to the Council, the European Parliament, the Economic and Social

Committee, and the Committee of the Regions, COM(2002) 27, Jan. 23, 2002.

45 European Commission, “Life Sciences & Biotechnology, A Strategic Vision,” found at Internet

address http://europa.eu.int/...biotechnology/introduction_en.html, retrieved Jan. 24, 2002.
4-10

Foreign Sales Corporations

In potentially the largest U.S.-EU dispute in terms of the amount of trade affected, the

WTO dispute-settlement process continued throughout the year in response to an EU

complaint that U.S. special tax treatment of foreign sales corporations (FSCs) is a

prohibited export subsidy. The EU has requested WTO authorization to impose

countermeasures valued at over $4 billion, a figure the EU claims is equivalent to the

amount of subsidies the United States provides through tax exclusions to U.S.

exporters.

Background46

On July 1, 1998, the EU requested a dispute-settlement panel to examine the FSC

provisions of U.S. tax law,47 claiming they were inconsistent with the WTO Agreement

on Subsidies and Countervailing Measures and WTO Agreement on Agriculture. On

September 12, 1998, a WTO dispute-settlement panel was established. On October 8,

1999, the panel ruled that the FSC tax exemption constituted a prohibited export

subsidy under the Subsidies Agreement and, for agricultural products, the tax

exemption violated U.S. obligations under the Agriculture Agreement.48 The United

States filed a notice of appeal in 1999 and, on February 24, 2000, the WTO Appellate

Body upheld the panel’s finding.

On November 15, 2000, President Clinton signed into law the FSC Repeal and

Extraterritorial Income Exclusion Act of 2000 (ETI), the first U.S. legislation enacted to

implement findings of a WTO dispute-settlement panel.49 According to the USTR, the

ETI was “intended to replicate, within the parameters of the U.S. tax system, the tax

treatment afforded [foreign-source] income under European tax systems.”50 Two

days later, the EU requested a WTO panel to examine the replacement regime, which

the EU claimed “not only maintains the violations found by the WTO in the FSC case,

but may even aggravate them.”51 On the same day, the EU requested that the WTO

authorize the European Community to suspend equivalent concessions as

compensation (i.e., retaliatory measures) against the United States valued at $4.0

billion, the highest amount ever claimed in a WTO dispute. The United States objected

to the amount and requested arbitration in the matter. Arbitration was suspended

46 For more information on the background of the FSC dispute, see USITC, The Year in Trade: OTAP,

2000, USITC publication 3428, pp. 4-12 to 4-13.

47 Sections 921-927 of the U.S. Internal Revenue Code.

48 The panel made no ruling on certain other matters, such as FSC administrative pricing rules or EU

claims regarding an import substitution subsidy.

49 The White House, “Statement by the President,” Nov. 15, 2000, found at Internet address

http://www.useu.be/ISSUES/fsc1116.html, retrieved Mar. 16, 2001.

50 USTR, “WTO Upholds Adverse Ruling on Foreign Sales Corporation (FSC) Tax,” press release

2002-05, Jan. 14, 2002.

51 European Commission, “EU Requests WTO Compliance Panel and Authorisation to Impose

Sanctions Against the US in Foreign Sales Corporation Trade Dispute,” press release IP/00/1321,

Nov. 17, 2000.
4-11

pending the outcome of the dispute-settlement case examining the WTO consistency of

the ETI law.52

Developments during 2001

On August 20, 2001, the WTO ruled that the ETI also constituted a prohibited export

subsidy and remained inconsistent with U.S. WTO obligations. On October 15, 2001,

the United States announced that it would appeal the ruling. On January 14, 2002, the

WTO Appellate Body upheld the original panel findings, with one exception.53

Canada

The volume of trade between the United States and Canada is the largest in the world,

currently measured at nearly $1 billion a day. U.S.-Canadian relations are governed

in large part by a free trade agreement, originally bilateral in nature and signed in

1988. The U.S.-Canada Free Trade Agreement (CFTA) evolved into the North

American Free Trade Agreement (NAFTA) in 1994.54 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.55 The

major trade-related issue in 2001 continued to involve softwood lumber and the spring

2001 expiration of the bilateral agreement between the United States and Canada

governing trade in that sector. Other issues in 2001 included bilateral disputes in the

WTO involving Canadian wheat and dairy products.

52WTO, “Overview of the State-of-Play of WTO Disputes,” Feb. 21, 2001, found at Internet address

http://www.wto.org/wto/dispute/bulletin.htm, retrieved Feb. 28, 2001.

53 The Appellate Body found “that the Panel erred in its interpretation of Article 10.3 of the DSU in

declining, in its decision of 21 February 2001, reproduced in paragraph 6.3 of the Panel Report, to rule

that all the written submissions of the parties filed prior to the only meeting of the Panel must be provided to

the third parties.” WTO, “United States Tax Treatment for “Foreign Sales Corporations” – Recourse to

Article 21.5 of the DSU by the European Communities,” WT/DS108/AB/RW, Jan. 14, 2002, par. 256,

found at Internet address http://docsonline.wto.org/, retrieved on Mar. 8, 2002. In a statement on the

January 2002 WTO Appellate Body ruling, USTR Zoellick said that “This is an especially sensitive dispute

that, at its core, raises questions of a level playing field with regard to tax policy.” He added that the

USTR” will be consulting closely with Congress and affected U.S. interests regarding next steps.” USTR,

“WTO Upholds Adverse Ruling on Foreign Sales Corporation (FSC) Tax,” press release 02-05, Jan. 14,

2002, found at Internet address http://www.ustr.gov/releases/2002/01/02-05.htm, retrieved Apr. 8,

2002. The arbitration panel to determine the appropriate level of EU countermeasures resumed on

Jan. 29, 2002, and is expected to reach a decision on June 17, 2002.

54 For more information on NAFTA, see chapter 3.

55 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. January 1,

1994, marked the entry into force of the NAFTA. The timetable for duty reductions and most of the terms

of the CFTA were incorporated into NAFTA.
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U.S. trade with Canada decreased in 2001. U.S. exports, totaling $144.6 billion,

decreased $11 billion (7.3 percent) from 2000, while U.S. imports from Canada

totaled $216.8 billion, a decrease of over $12 billion (5.3 percent) from 2000. The

leading items exported from the United States to Canada in 2001 were all motor

vehicle products: parts and accessories for bodies for motor vehicles, passenger

motor vehicles, piston engines, and parts and accessories for motor vehicles. The

major items imported from Canada into the United States during the same period

were: passenger motor vehicles, natural gas, other motor vehicles, and crude

petroleum. The trade deficit with Canada increased slightly (0.9 percent) from 2000 to

2001, to $72.2 billion. U.S.-Canadian trade data are shown in tables A-4, A-5, and

A-6.56

U.S.-Canadian Softwood Lumber Agreement

Background

The expiration of the five-year Softwood Lumber Agreement (SLA) between the United

States and Canada on March 31, 2001, was likely the most significant

commodity-related event affecting trade between the United States and Canada in

2001. As discussed in further detail below, both prior to and following the expiration of

this agreement, the United States and Canada engaged in extensive negotiations

relating to the possible extension of the agreement or the establishment of a new one.

Following the expiration of the SLA, the U.S. lumber industry filed a petition under U.S.

countervailing duty and antidumping laws with the U.S. Department of Commerce

(“Commerce”) and USITC. Both agencies initiated investigations, and both made

preliminary affirmative determinations during 2001.

The United States and Canada formally entered into the SLA on May 29, 1996. The

agreement sought to ensure that the U.S. lumber industry did not suffer material injury

or threat thereof from imports of softwood lumber from Canada.57 The five-year SLA

established annual allocations and fees for lumber exports from the Canadian

provinces of British Columbia, Quebec, Alberta, and Ontario. The agreement

stipulated that up to 14.7 billion board feet of lumber could be exported to the United

States annually without additional fees, such as export taxes. For exports in quantities

between 14.7 billion and 15.35 billion board feet per year, a fee of US$50 per 1,000

board feet was assessed, and for exports in excess of 15.35 billion board feet per year

the fee was US$100 per 1,000 board feet. The Government of Canada was

responsible for allocating export allowances to the four provinces. Each province was

assessed fees for exports in excess of its allotment.58

56 U.S. trade with NAFTA partners is shown in table 3-1.

57 For more information about the agreement and its origin, see USITC, The Year in Trade; OTAP,

1995, USITC Publication 2971, pp. 47-48.

58Canadian Department of Foreign Affairs and International Trade, “Minister Eggleton Announces

Softwood Lumber Plan,” press release 157, Sept. 10, 1996.
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Domestic lumber companies, unions, and trade associations pledged that they would

not seek recourse to U.S. trade laws to dispute imports of Canadian softwood lumber

for the duration of the five-year accord. Canada also was assured that Commerce

would not self-initiate any trade action during the life of the agreement, and would

dismiss any petition from the lumber sector brought under the U.S. countervailing duty

and antidumping laws as long as the SLA was in effect and not breached.59

As the end of the SLA approached, the U.S. and Canadian Governments began

discussions on whether the agreement should be extended, renegotiated, or whether

softwood lumber should be freely traded. The debate in Canada focused on whether

to negotiate a successor lumber agreement or to allow the existing agreement to

expire, thus ending government intervention in this sector’s bilateral trade.60 In both

countries, environmental groups criticized what they perceived as the shortcomings of

the SLA, as well as deficiencies in each country’s lumber management policy. Most

environmental groups argued for less management of lumber trade, but for greater

control over the management of forests as a natural resource.61

U.S. and Canadian negotiators did not reach agreement by March 31, 2001 when the

SLA expired. On April 2, 2001, the U.S. Coalition for Fair Lumber Imports (CFLI) filed a

petition with Commerce and the USITC under the U.S. countervailing duty and

antidumping duty laws, alleging that the domestic softwood lumber industry was being

materially injured or threatened with material injury by reason of imports of Canadian

softwood lumber that were being subsidized by the Government of Canada and sold

in the United States at less than fair value (i.e., dumped).62 On May 16, 2001, the

USITC made affirmative determinations in the preliminary phase of its

investigations,63 finding a reasonable indication that a U.S. industry was threatened

with material injury by reason of allegedly subsidized and dumped imports of

softwood lumber from Canada.64

The bilateral negotiations continued throughout the year and into 2002, without

reaching an agreement. Meanwhile, as a result of the USITC’s affirmative preliminary

determinations, Commerce continued with its investigations. On August 10, 2001,

Commerce made an affirmative preliminary determination in its countervailing duty

(cvd or subsidy) investigation on imports of softwood lumber, and on October 30,

2001, made an affirmative preliminary determination in its antidumping duty

investigation.

59 USTR, press release 96-35, Apr. 2, 1996.

60 Inside Washington Publications, “Canadian Producers Take Conflicting Positions on Lumber

Deal,” Inside U.S. Trade, Apr. 21, 2000.

61 Ibid.

62 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 press release, “ITC Votes to

Continue Cases on Softwood Lumber from Canada,” No. 01-071, May 16, 2001. CFLI alleged dumping at

a rate between 28 and 36 percent, and subsidization at a rate of 39.5 percent in the petition (BNA, ITD,

April 24, 2001, p. 20).

63 USITC Investigation Nos. 701-TA-414 and 731-TA-928 (P), Softwood Lumber from Canada. 64 USITC press release, “ITC Votes to Continue Cases on Softwood Lumber from Canada,”

No. 01-071, May 16, 2001.
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On March 21, 2002, Commerce subsequently made affirmative final determinations

in both of its investigations, finding a countrywide countervailable subsidy of 19.34

percent65 and margins of dumping ranging from 2.26 percent to 15.83 percent, with

an all others rate of 9.67 percent.66 The USITC made an affirmative determination in

its investigations on May 2, 2002, finding that the U.S. softwood lumber industry was

threatened with material injury by the imports of the subject products from Canada.

Other Bilateral Developments

Other matters that occupied trade policy practitioners during 2001 included: the

challenge to Canadian wheat practices; and a WTO bilateral trade dispute involving

Canadian dairy products.67

Wheat

In September 2000 the North Dakota Wheat Commission (NDWC) challenged the

operations of the Canadian Wheat Board (CWB), and filed a section 301 petition with

USTR, alleging that the CWB engaged in unfair practices resulting in predatory pricing

and the loss of U.S. access to foreign markets. The NDWC sought restraints on

Canadian exports of wheat to the United States. The petition was not supported by U.S.

millers and other importers.68 A section 301 investigation into the sales practices of the

CWB in U.S. and third-country markets was initiated by USTR in October 2000,

representing the ninth time that the practices of the CWB have been investigated by the

United States.69 The case continued through 200170 and a decision was expected into

2002.71 The 16-month investigation was concluded on Feb. 15, 2002 with an

announcement by USTR Zoellick. The U.S. producer request for a tariff-rate quota was

rejected, and in its place the administration decided to pursue “multiple avenues” for

relief for U.S. wheat farmers.72

65 67 Fed. Reg. 15545 (April 2, 2002). Commerce also exempted from its CVD determination

softwood lumber products from the Maritime provinces unless produced from Crown timber harvested in

another province.

66 67 Fed. Reg. 15539 (April 2, 2002).

67 Throughout the year under review, the Canadian dairy issue was the subject of WTO dispute

settlement adjudication. This issue is addressed separately in chapter 2. The U.S.-Canada dairy dispute

was first addressed in the 1997 YIT/OTAP, pp. 85-89.

68 The complaint covers certain kinds of wheat, mainly the durum and hard red spring wheat

classes.

69 Inside Washington Publications, “USTR Initiates Section 301 Investigation Against Canadian

Wheat Board,” Inside U.S. Trade, Oct. 27, 2000; and 65 FR 69362-3, Nov. 16, 2000.

70 For more information, see chapter 5 on section 301 investigations. In conjunction with the section

301 case and at the request of the United States Trade Representative, the USITC instituted investigation

No. 332-349, Wheat Trading Practices: Competitive Conditions Between U.S. and Canadian Wheat on

April 12, 2001.

71 USTR, “USTR Extends Section 301 Investigation on Canadian Wheat,” USTR press release

2002-06, Jan. 18, 2002.

72USTR, “United States to Pursue Action Against Monopolistic Canadian Wheat Board,” USTR press

release, 2002-22, Feb. 15, 2002.
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Following receipt of a request from USTR on April 2, 2001, the USITC initiated an

investigation into wheat trading practices and competitive conditions between the

United States and Canada.73 The Commission’s confidential report was delivered to

the Office of the U.S. Trade Representative on September 24, 2001, in accordance

with the USTR request.74 The USTR 301 investigation was originally scheduled to

conclude by October 23, 2001. NDWC requested a 90-day extension to January 22,

2002 for completion of the report, and the extension request was granted on October

16, 2001.75 The USTR investigation was further extended from January 22, 2002 until

February 15, 2002.

Mexico

The United States and Mexico continued to enjoy close and cordial economic relations

during the year under review. Certain long-standing trade issues between the two

countries, however, remained unresolved. Mexico’s antidumping duties on

high-fructose corn syrup from the United States and monopolistic practices of

Telefonos de Mexico S.A. (Telmex), Mexico’s telecommunications monopoly,

continued to be major U.S. complaints against Mexico. For Mexico, significant areas of

contention included the size of U.S. tariff-rate quotas on Mexican sugar, and access to

U.S. highways by Mexican trucks.

A slowdown in the U.S. economy–the destination for well over four-fifths of Mexican

exports–limited Mexico’s economic performance in 2001. After posting a 6.9 percent

annual growth in 2000, the Government of Mexico revised its growth forecasts for

2001 from 4.5 percent down to zero towards the end of the year.76 Falling federal

revenues from petroleum exports and smaller tax revenues sharply restricted Mexico’s

federal spending, making it difficult for President Fox to live up to his social

commitments.

According to preliminary official statistics, the Mexican trade deficit totaled $9.7

billion in 2001, 21.6 percent more than the $8 billion posted a year earlier. Mexico’s

Minister of Finance said that the growing trade gap in 2001 was attributable almost

entirely to lower oil exports. Demand for petroleum declined during the year,

especially following the terrorist attacks on the United States on September 11.

Mexico’s total merchandise exports were $158.54 billion, a 4.8-percent decline

compared with 2000. Petroleum exports fell 21.9 percent, and nonpetroleum exports

fell 2.9 percent. Total Mexican merchandise imports in 2001 were $168.28 billion, a

3.5 percent decline.

73 Ibid; and USITC, “ITC to Investigate Conditions of Competition Between U.S. and Canadian

Wheat Practices,” USITC press release 01-049, Apr. 13, 2001.

74 The ITC issued a public version of the report on Dec. 21, 2001. USITC, “ITC Releases Report on

Conditions of Competition Between U.S. and Canadian Wheat Practices,” USITC press release 01-149,

Dec. 21, 2001. See USITC, Wheat Trading Practices: Competitive Conditions Between U.S. and Canadian

Wheat, Investigation No. 332-429, USITC Publication 3465, December 2001.

75USTR, “USTR Extends Section 301 Investigation on Canadian Wheat,” USTR press release 01-82,

Oct. 16, 2001.

76 For background, see USITC, The Year in Trade: OTAP 2000:, USITC publication 3428,

June 2001, p. 4-18.
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Mexico maintained its position in 2001 as the third-largest U.S. trading partner after

the EU, Canada and before Japan. However, bilateral trade contracted in both

directions. U.S.-Mexican trade data, based on U.S. statistics, are shown in tables A7 to

A9. U.S. exports to Mexico declined by $9.9 billion (9.9 percent) to 90.5 billion. U.S.

imports from Mexico dropped by $4.2 billion (3.1 percent ) to $130.5 billion. The

United States had a trade deficit of $40 billion with Mexico; larger than the $34.3

billion deficit of 2000. Mexico’s continued surplus in trade with the United States

helped to reduce the country’s widening trade deficit with the rest of the world. The

United States is Mexico’s dominant trading partner, receiving in 2001 88.5 percent of

Mexico’s total exports, and supplying 67.5 percent of its total imports.77

Mexico’s Telecommunications Practices

The United States held consultations with Mexico in both 2000 and 2001 on several key

issues regarding Mexico’s telecommunications practices.78 Beginning in 2000, these

consultations concerned Mexican rules that make competition ineffective for U.S.

suppliers of basic telecommunications services. Insufficient progress led the United

States to file its first request in November 2000 to establish a WTO dispute-settlement

panel to examine these practices.79 In April 2001, in its annual review of foreign

compliance with telecommunications trade agreements reported under Section 1377

of the Omnibus Trade and Competitiveness Act of 1988, USTR welcomed the progress

that Mexico has made in improving competition in its telecommunications market, but

pointed out that Mexico had not addressed certain remaining WTO commitments in

this field, particularly involving competition in its market for international

telecommunications services. The review also reported that Mexico had failed to

enforce rules to curtail anticompetitive conduct by its telecommunications monopoly,

Telmex.80 In March 2002, USTR has indicated that the “United States expects to file a

new request for establishment of a WTO panel in early 2002 that specifically

addresses this issue” of competition in the Mexican telecommunications services.81

Access of Mexican Trucks to U.S. Roads

On February 6, 2001, the United States lost its first major case under a NAFTA

arbitration panel which ruled that the United States was in violation of its NAFTA

obligations with respect to access by Mexican trucks to U.S. highways. The panel found

that: “[t]he U.S. blanket refusal to review and consider for approval any

Mexican-owned carrier applications for authority to provide cross-border trucking

77 USTR, 2002 Trade Policy Agenda and 2001 Annual Report, March 2002, p. 117.

78 USTR, “Annual Review of Telecommunications Trade Agreements Highlights Concerns in

Colombia, Mexico, South Africa, and Taiwan,” Press Release 01-20, Apr. 2, 2001.

79 USTR, 2002 Trade Policy Agenda and 2001 Annual Report, March 2002, p. 117.

80 Stratfor Strategic Forecasting, “Mexican Economy Hindering President’s Pledges,” found at

Internet address http://www.stratfor.com/latinamerica, retrieved Nov. 26, 2001.

81 Official Mexican trade data.
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services was and remains a breach of U.S. obligations.”82 The panel recognized the

right of the U.S. Government to require Mexican trucks to comply with U.S. safety

standards, but recommended that it review applications from Mexican truckers on a

case-by-case basis.”83 On December 18, 2001, President Bush signed into law

legislation providing for such access and setting out the requirements Mexican trucks

needed to meet before they are granted access.84

Background85

The dispute over access of Mexican trucks to U.S. highways began at the end of 1995,

when the United States delayed permission for Mexican-domiciled cargo and

passenger services to operate in California, Texas, Arizona, and New Mexico, as

agreed earlier in the context of NAFTA. The United States cited safety reasons in

justifying the delay.

Bilateral consultations on adapting Mexican trucks to U.S. truck safety requirements

continued after 1995, but no agreement was reached. Mexican officials insisted that

their country’s safety inspection system was already consistent with that of the United

States. In 1998, the Government of Mexico formally protested the U.S. postponement

of the NAFTA trucking provisions’ implementation under NAFTA dispute-settlement

provisions.

Interest in the issue intensified in 1999, as the January 1, 2000 deadline for access of

Mexican trucks to the entire United States came into view. U.S. authorities found that

restrictions notwithstanding, Mexican trucks that had not complied with U.S. standards

already found ways to haul cargo into U.S. territory.86 Hence, in December 1999,

President Clinton signed the Motor Carrier Safety Improvement Act of 1999,87 part of

which provided for Foreign Motor Vehicle Penalties and Disqualifications.88

In addition, since inadequate U.S. border inspection was blamed in part for unsafe

Mexican trucks circulating on U.S. roads, the Department of Transportation (DOT)

embarked on a program of improving the inspection process.89 Most important, the

opening of the border to Mexican trucks did not take place on January 1, 2000, as

mandated by NAFTA. Mexican trucks continued to be restricted to a border zone.90

82North American Free Trade Agreement Arbitral Panel Established Pursuant to Chapter Twenty, In

the Matter of Cross-Border Trucking Services (Secretariat File No. USA-MEX-98-2008-01), “Final Report

of the Panel,” Feb. 6, 2001, p. 81. The panel refers to NAFTA obligations under Annex I (reservations for

existing measures and liberalization commitments) Article 1202 (national treatment for cross-border

services), and Article 1203 (most-favored-nation treatment for cross-border services).

83 Ibid, p. 82.

84 P.L. 107- 87.

85 See also USITC, The Year in Trade: OTAP, 1999, USITC publication 3336, August 2000, p. 61.

86 An 1999 report of the Federal Motor Vehicle Safety Administration (FMCSA), based on an

analysis of roadside inspection in FY 1998, identified 254 Mexican, domiciled motor carriers that

operated improperly on U.S. roads. Cited by DOT, Office of Inspector General, Interim Report on Status

of Implementing the North American Free Trade Agreement’s Cross-Border Trucking Provisions, report

No. MH-2001-059, May 8, 2001, p. 16.

87 P.L. 106-159.

88 Title II, Sec. 219.

89 See also USITC, The Year In Trade: OTAP, 1999, USITC publication 3336, August 2000 , p. 61.

90 See also Magdolna Kornis, “Implementation of NAFTA Provision to Open U.S. Roads to Mexican

Trucks on January 1, 2000, has been Delayed,” International Economic Review, Jan.-Feb. 2000.
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The Dispute during 2001

In 2001, Mexican cross-border trucking access continued to be a major unresolved

issue in U.S.-Mexican trade relations. Since NAFTA became effective in January 1994,

trade between the United States and Mexico has grown significantly, augmenting the

importance of cross-border trucking services. Over four-fifths of bilateral trade is

transported through highways. The NAFTA ruling in February that the United States is

in violation of its treaty obligations, coupled with the advent of new administrations in

both countries, gave added importance to this issue.

Once again, the safety problem had to be addressed. Testifying before the House

Subcommittee on Transportation, the Inspector General of DOT said on March 2,

2001, that since 39 percent of Mexican trucks inspected at the border failed to meet

U.S. safety standards, a greater border inspection presence was needed to

accommodate a large flow of trucks.91 Ready to comply with the verdict of the NAFTA

arbitration panel, DOT proposed in May that beginning January 1, 2002 it would

allow Mexican trucking companies to apply for permission to operate in the United

States. Mexican trucks when in the United States would have to adhere to the same

rules as do U.S. trucks. DOT also proposed rules for Mexican service providers on how

to submit trucks for inspection, and on other aspects of compliance.92

However, the Department of Transportation proposal on expanded inspection and the

pertaining budget request met with opposition in the congressional debate of the 2002

transportation spending bill. A House bill of June 26, 2001 (H.R. 2299) would prohibit

any funding for processing Mexican truckers’ applications for access, in effect

postponing again the opening of the border beyond January 1, 2002.93 The Senate

version of August 1, 2001 (S. 1178) proposed to subject Mexican trucks to an array of

safety regulations and required that the trucks should be certified in Mexico even

before they are submitted to the U.S. inspection process.94 The Bush Administration

and other advocates of opening the border found the Senate requirements restrictive

and discriminatory against Mexico.95

Year-end Agreement

General concern about foreign trucking access to the United States increased sharply

in the wake of the September 11, 2001 terrorist attacks, threatening further delays in

91 Statement of the Honorable Kenneth M. Mead, Inspector General, U.S. Department of

Transportation, testimony before the Subcommittee on Transportation and Related Agencies, House

Appropriations Committee, United States House of Representatives, Mar. 8, 2001, found at Internet

address http://www.oig.dot.gov/, retrieved on Mar. 7, 2002.

92 Federal Motor Carrier Safety Administration, “Instructions for Completing Applications for

Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers,” form op-2,

found at Internet address http://www.dot.gov/factsfigs/licensing/op.2.htm, retrieved Sept. 21, 2001.

93 Amendment to the DOT appropriation bill, offered by Rep. Martin Sabo (D-Minn.).

94 A bipartisan proposal of Sen. Richard C. Shelby (R-Ala.) and Sen. Patty Murray (D-Wash.), the

so-called Murray-Shelby proposal, imposed tough safety restrictions on Mexican trucks.

95 BNA, International Trade Daily, Aug. 2, 2001; Sara J. Fitzgerald, “Why Stricter Standards on

Mexican Trucks Will Hurt Our Neighbor and Ourselves,” The Heritage Foundation, Executive

Memorandum No. 766, Aug. 10, 2001.
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the resolution of the issue. Yet, before the end of the year, the House and the Senate

reached a bipartisan compromise for the purpose of the 2002 transportation

appropriations bill,96 allowing Mexican trucks to enter the United States, provided

they met specified old and newly added safety requirements. This is the bill that

President Bush signed into law on December 18th.97

Transportation and trade officials of both countries began to negotiate operating

regulations to be applied when U.S. and Mexican trucks enter one another’s country.

A report issued by the General Accounting Office at the end of the year noted Mexican

efforts in improving truck safety and air emission regimes.98 The same report urged

DOT to reach agreement with the border states and other federal agencies involved

regarding the development of the expanded truck inspection system.99 DOT

reportedly expects to effectively open the border to Mexican trucks in the second

quarter of 2002.100

Mexican Sugar and U.S. Sweeteners

The dispute over Mexican access to the U.S. sugar market as well as U.S. access to the

Mexican high-fructose corn syrup (HFCS) market intensified during 2001. HFCS is used

primarily as a sweetener in soft drinks, but it is also an input in the bakery, fruit

processing, fruit juice canning, and yogurt industries. Sugar and HFCS have a high

degree of substitutability in the soft drink industry, and therefore issues of their access

to the partner’s market are intimately linked.101

Sugar

The long-standing crisis of the Mexican sugar industry caused by overproduction,

falling prices, and heavy debt, prompted Mexican authorities in September 2001 to

nationalize many of the nation’s sugar mills.102 Mexico considers refusal by the United

States to open its market wider to Mexican sugar an important cause of the industry’s

problems.103

During 2001, Mexico continued to claim that under NAFTA provisions it is entitled to

export its sugar surplus, some 450,000 to 500,000 metric tons, to the United States

96 A conference report on DOT funding was cleared by the House on Nov. 30, 2001, and by the

Senate on Dec. 4, 2001.

97 P.L 107- 87.

98General Accounting Office, “North American Free Trade Agreement: Coordinated Operational

Plan Needed to Ensure Mexican Trucks’ Compliance with U.S. Standards,” Dec. 21, 2001, GAO 02-28.

99 Ibid.

100 Rossella Brevetti, “GAO Faults U.S. Readiness to Ensure Safety of Mexican Trucks,”

BNA-International Trade Daily, Jan. 9, 2002.

101 Sugar and HFCS are often not substitutable in cases where sugar is used as a bulking agent (e.g.,

in baked goods).

102 Washington Trade Daily, Sept. 3 and 4, 2001, p. 3.

103 For additional background, see USITC, The Year in Trade: OTAP, 1997, USITC publication 3103,

p. 111; OTAP, 1998, USITC publication 3192, p. 66; OTAP, 1999, USITC publication 3336, p. 39, and

OTAP, 2000, USITC publication 3428, p. 4-15.
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free of duty.104 However, the U.S. Government allocated only 116,000 metric tons of

its sugar’s tariff-rate quota (TRQ) to Mexico for FY 2000/01, and 137,780 metric tons

for FY 2001/02.105 The gap between Mexico’s TRQ, as seen by Mexico, and the actual

annual U.S. TRQ allocations to Mexico during the NAFTA years, arises from different

interpretations by the two countries of NAFTA’s sugar trade provisions.106

In August 2000, Mexico requested formal NAFTA dispute-settlement proceedings

concerning the extent of U.S. obligations under the accord to purchase excess Mexican

sugar duty free.107 No panel was formed during the year, however, because of

difficulties in selecting the five panelists.108 In December 2001, the Mexican

Government urged the United States again to advance the installation of a panel.

High-Fructose Corn Syrup

Mexico also seeks to boost domestic sugar consumption as a means of more easily

disposing of its excess sugar. In the context of this effort, authorities have become

concerned that nonsugar sweeteners such as HFCS could replace sugar in the

domestic soft drink industry. To prevent such substitution, Mexican officials sought to

limit competition from cheaper, alternative sweeteners, both domestic and imported. In

October 2001, Mexico’s Secretariat of the Economy announced an increase of HFCS

import duties for countries other than NAFTA partners and partners in trade

agreements other than NAFTA.109 In addition, on December 3, 2001, the Mexican

Senate imposed a 20-percent tax on soft drinks made with HFCS, placing the soft

drinks with imported HFCS at a competitive disadvantage relative to soft drinks made

104NAFTA partners’ reciprocal access to one another’s markets is established in Section A of Annex

703.2 of NAFTA, and in an understanding between the United States and Mexico, as confirmed in a

Nov. 3, 1993 letter by the then United States Trade Representative Michael Kantor to the then Mexican

Secretary of Commerce and Industrial Development, Jaime Serra Puche. Differing interpretations of

these provisions and the understanding impinge on the degree to which Mexico is granted duty-free

access to U.S. markets for sugar and syrup goods. For further detail see USITC, The Year in Trade: OTAP,

1997, USITC publication 3103, p. 111 ff.

105 USTR, “USTR Announces Allocation of the Raw Cane Sugar, Refined Sugar, and Sugar

Containing Products Tariff-rate Quotas for 2000/2001,” press release 00 -64, Sept. 21, 2000, found at

Internet address http://www.ustr.gov/releases/2000/09/00-64.htm, retrieved on Mar. 8, 2002. The

116,000 metric ton allocation is the sum of the following components: (1) 7,258 metric tons (raw value),

the minimum level to which the United States is committed under the Uruguay Round Agreements;

(2) 2,954 metric tons (refined basis); and (3) an additional quantity of 105,788 metric tons (raw value),

the quantity which the United States committed to provide to Mexico under NAFTA.

106 See also USITC, The Year In Trade: OTAP, 2000, USITC publication 3428, p. 4-15. For

background see USITC, The Year in Trade: OTAP, 1997, USITC publication 3103, p. 111; OTAP, 1998,

USITC publication 3192, p. 66; OTAP, 1999, USITC publication 3336, p. 39, and OTAP, 2000, USITC

publication 3428, p. 4-15.

107 American Sugar Institute (ASI), “U.S. Sugar Industry Greatly Disappointed at Mexican Action,”

Press Release, Aug. 17, 2000.

108 John Nagel, “Mexico to Push for NAFTA Panel on Sugar in Meetings with USTR,”

BNA-International Trade Daily, Dec. 6, 2001.

109 Diario Oficial, Oct. 11, 2001; and U.S. Department of Agriculture, Foreign Agricultural

Service,“Mexico: Modification of HFCS MFN Import Duties, 2001,” Oct. 12, 2001, GAIN Report

#MX1182.
4-21

with sugar, produced in Mexico.110 At the time this report is being prepared, this issue

still has to be fully resolved.111

In recent years, Mexico has repeatedly attempted to reduce HFCS imports, especially

from the United States, which provides more than 60 percent of the fructose consumed

in Mexico. At the request of Mexican sugar producers, the Mexican Government

levied antidumping duties on selected HFCS commercial products from the United

States on a provisional basis in 1997 and on a final basis in 1998.112 This action was

taken on grounds that HFCS from the United States had been sold at less than fair value

in the Mexican market, and that such imports were threatening the Mexican sugar

industry with material injury.113 Interested parties in the United States and the U.S.

Government challenged these antidumping duties by initiating dispute-settlement

proceedings under NAFTA and the WTO, respectively.

While the issue of sweeteners was awaiting formal dispute-settlement proceedings

under the NAFTA and WTO, U.S. and Mexican officials continued to seek a bilateral

resolution of the dispute as well. However, no tangible progress had been made by the

end of 2001.

Table 4-2 sets out a chronology of events relating to the NAFTA and WTO

dispute-settlement panels. Both the WTO and NAFTA panels ruled against Mexico,

directing it to remove such duties.

WTO determinations regarding HFCS have ruled twice against Mexico during 2001.

On June 22, 2001, a WTO dispute-settlement panel ruled in favor of the United States,

saying that the steps taken by Mexico to comply with recommendations of an earlier

WTO panel in January 2000 were insufficient to bring Mexico into compliance with its

WTO obligations. The panel ruling in June 2001 supported the U.S. position that

Mexico failed to correct the flaws found in the original determination.114 Mexico

appealed this second panel’s findings. Subsequently, on October 22, 2001, the WTO

Appellate Body upheld the dispute panels’ findings that ruled in favor of the U.S.

argument.115

110 USTR, “USTR Expresses Strong Concern with Mexican Tax on Soft Drinks Containing High

Fructose Corn Syrup,” press release 02-09, Jan. 22, 2001, found at Internet address

http://www.ustr.gov/releases/2002/01/02-09.htm, retrieved on Mar. 7, 2002; Myrna

Zelaya-Quesada and John Nagel, “Mexico and the United States Hit Stalemate Over Tax on Soft Drinks

with Corn Syrup, BNA-International Trade Daily, Jan. 24, 2002.

111 For details of the HFCS antidumping case during prior years and references, see especially

USITC, The Year in Trade: OTAP, 1997, USITC publication 3103, May 1998, p. 111, and USITC, The Year

in Trade: OTAP, USITC publication 3428, June 2001, pp. 4-15.

112 Ibid.

113 For details on the HFCS antidumping case, see USITC, The Year in Trade: OTAP, 1998, USITC

publication 3192, pp. 67-68.

114USTR, “U.S. Wins WTO Case on High Fructose Corn Syrup,” press release 01-44, June 22, 2001.

115USTR, “U.S. Wins WTO Case on High Fructose Corn Syrup,” press release 01-86, Oct. 22, 2001;

and WTO, Mexico - Anti-Dumping Investigation of High Fructose Corn Syrup (HFCS) from the United

States - Recourse to Article 21.5 of the DSU by the United States, WT/DS132/12, Oct. 22, 2001, found at

Internet address http://docsonline.wto.org/, retrieved on Mar. 7, 2002.
4-22

Table 4-2

High-fructose corn syrup: Formal U.S. complaints about antidumping

duties, and the Mexican responses

Date of action Action under WTO Action under NAFTA

1-28-98 Corn Refiners Association in

the United States requests

dispute settlement proceedings under Ch.19.

10-8-98 U.S. Government requests

establishment of a dispute

settlement panel.

1-28-00 WTO dispute panel rules

against Mexico; finds insufficient evidence for a threat of

injury of the Mexican sugar

industry.

9-20-00 Mexico’s antidumping authority

determines once again that

there is a threat of injury.

The United States challenges

this redetermination.

6-22-01 WTO dispute panel agrees

with U.S. view.

8-3-01 NAFTA rules against Mexico,

directing it to remove duties.

Mexico continues to retain

duties.

10-22-01 WTO appellate body agrees

with U.S. view.

Source: Prepared by USITC staff.

In addition, in its August 2001 reply to the 1998 U.S. request, the NAFTA dispute panel

reached the same overall conclusion as the WTO panel and WTO Appellate Body,

stating that “the Secretary of the Economy has failed to establish threat of injury to the

Mexican sugar industry because of these imports.”116 The NAFTA panel gave Mexico

90 days to either terminate the duties and refund the amounts already collected, or

“establish legitimate grounds for the duties.” On November 23, Mexico announced

that it would not remove the duties and that it had submitted a new argument justifying

the duties for the NAFTA panel’s review.117

Year-end Developments

Under NAFTA, the United States is entitled to take retaliatory action if Mexico does not

comply with the panel ruling. However, at a December 10, 2001 meeting with Mexican

116 “Review of the Final Determination of the Antidumping Investigation on Imports of High Fructose

Corn Syrup Originating from the United States of America, Case: MEX-UNITED STATES-98-1904-01,”

Aug. 3, 2001, Courtesy Translation, Public Version, Executive Summary, found at Internet address

http://www.nafta-sec-alena.org/english/index.htm, retrieved on Mar. 1, 2002.

117 “U.S., Mexico Agree to Seek Solution to Disputes Over Sweeteners,” BNA-International Trade

Daily, Dec. 13, 2001.
4-23

officials, U.S. officials said that they are not presently planning retaliatory action.118 At

that meeting, both parties signed a letter of commitment agreeing to negotiate an

integrated solution to the sugar and HFCS issues soon.119

Japan

As in 2000, few bilateral issues existed between the United States and Japan in 2001.

The major trade discussions between the two countries focused on autos and parts and

a new agreement entitled “U.S.-Japan Economic Partnership for Growth.”

The negotiations on autos centered on extending the expired auto and auto parts

agreement. Following several rounds of talks, a new consultative group was created to

handle future market access issues for autos.

The other major bilateral topic during 2001 was the creation of the Economic

Partnership for Growth to discuss a wide range of global, regional, and bilateral

economic and trade issues. Several new initiatives were started under the Partnership:

the Investmtent Initiative, the Financial Dialogue, and the Trade Forum.

Examples of other ongoing issues were sectoral deregulation (including

telecommunications, investment, and information technology), structural deregulation

(including competition policy, distribution, transparency, and commercial code),

construction, intellectual property rights, insurance, and investment.

U.S. trade with Japan decreased by 12.9 percent in 2001, from $206.5 billion in 2000

to $179.7 billion in 2001. U.S. exports to Japan decreased by 11.8 percent to $53.5

billion in 2001, and U.S. imports from Japan declined by 13.5 percent to $126.1 billion

in 2001. As a result, the merchandise trade deficit with Japan declined from $85.0

billion in 2000 to $72.6 billion in 2001. In 2001, the leading export items to Japan were

parts of aircraft or helicopters, metal oxide semiconductors, parts and accessories for

automated data processing machines and units, corn, and cigarettes. Leading imports

from Japan in 2001 were passenger motor vehicles, parts and accessories for

automated data processing machines, input or output units for automated data

processing machines, still image video cameras and other video camera recorders,

video games used with television receivers, metal oxide semiconductors, and parts and

accessories for motor vehicles. U.S.-Japan trade data are shown in tables A-10

through A-12.

118 Meeting on December 10-11, 2001, of Robert Zoellick, U.S. Trade Representative; William Lash,

U.S. Undersecretary of Commerce; and Luis Ernesto Derbez, Mexico’s Economy Minister; and Luis de la

Calle, Undersecretary for International Trade Negotiations with the Economy Ministry.

119 “U.S., Mexico Agree to Seek Solution to Disputes Over Sweeteners,” BNA-International Trade

Daily, Dec. 13, 2001.
4-24

Autos and Parts

During 2001, the United States trade deficit with Japan in autos and auto parts

declined to $41.7 billion from $44.2 billion in 2000. Three-fourths of the automotive

trade deficit was accounted for by vehicles.120

On January 10, 2001, Commerce Secretary Norman Mineta stated that the Bush

Administration would take a tough approach towards bilateral auto trade and

reiterated demands for an extension of the expired auto and auto parts agreement.121

He rejected Japan’s 2000 proposal for bilateral government/private sector

discussions on auto standards, certification, environment, and other issues not directly

related to trade. During a meeting the next day with Mineta, Takeo Hiranuma, Japan’s

Minister of Economy, Trade, and Industry repeated Japan’s proposal aimed at

promoting cooperation and auto industry-related harmonization in areas such as

standards, certification, and the environment. Mineta asked Japan to improve market

access for foreign automakers and suppliers. Both officials confirmed the importance

of bilateral talks, but no future meeting was set at that time.122

In April, four months after the 1995 U.S.-Japan auto agreement expired, Japanese

auto producers continued to argue that globalization of the industry had eliminated

the necessity for an extension of the agreement. While the Japanese producers

believed that some form of government-to-government talks were needed, they

viewed the U.S. demands of 2000 as being too insistent and not reflective of the

changing global industry.123

In August, the United States proposed to begin annual talks on autos and parts. The

new round of talks among working-level officials was to be held once a year starting in

the fall.124 The first round was scheduled for September 12 and 13 in Seattle; however,

due to the terrorist attacks, the talks were postponed. On September 26, U.S. and

Japanese officials held a video conference in which they discussed a U.S. proposal

and the Japanese counterproposal that would eliminate market access issues from the

agenda. The two sides set no date for further discussions. The United States was

expected to respond to the Japanese counterproposal by broadening participation

beyond the Commerce Department and USTR.125

In October, the United States and Japan held a series of meetings to discuss future

bilateral auto consultations. The two sides decided to create the U.S.-Japan Automotive

Consultative Group to improve U.S. access to the domestic automotive market in Japan

120 U.S. Department of Commerce statistics.

121 For information about the expired 1995 U.S.-Japan auto agreement, see USITC,Operation of the

Trade Agreements Program, 52nd Report, 2000, USITC publication 3428, June 2001, pp. 4-22 to 4-24.

Bureau of National Affairs, Inc, “Mineta Repeats Plea for Extension of Lapsed Auto Accord With Japan,”

International Trade Daily, Jan. 12, 2001.

122 Bureau of National Affairs, Inc., “Mineta Repeats Plea for Extension of Lapsed Auto Accord With

Japan,” International Trade Daily, Jan. 12, 2001.

123 U.S. Department of State telegram, “Japanese Auto Makers Focused on Globalization

Strategies,” message reference no. 02706, prepared by U.S. embassy, Tokyo, Apr. 19, 2001.

124 Kyodo, “Japan, U.S. Likely to Start New Round of Auto Trade Talks,” Aug. 15, 2001.

125 Inside U.S. Trade, “U.S., Japan Discuss Auto Dialogue, Reschedule Subcabinet Meeting,”

Sept. 28, 2001.
4-25

and Japanese auto plants in the United States. The group is to be co-chaired by the

Commerce Department and the U.S. Trade Representative for the United States and

the Ministry of Economy, Trade, and Industry and the Ministry of Land, Infrastructure,

and Transport for Japan. The Automotive Consultative Group will assess trends in the

industry based on a series of trade and economic data on autos and automotive parts

to be provided by the United States and Japan. In addition, the group will address

market access issues as well as needed regulatory reform in Japan. The U.S.

Government is expected to consult closely with the U.S. auto and auto parts industries

in developing the agenda for the first meeting, to be held in 2002.126

U.S.-Japan Economic Partnership for Growth

Following an informal summit at Camp David between President Bush and Japanese

Prime Minister Koizumi, on June 30, 2001, the United States and Japan launched a

new bilateral forum for discussing a wide range of global, regional, and bilateral

economic and trade issues: the U.S.-Japan Economic Partnership for Growth. The

“Partnership” is aimed at “promoting sustainable economic growth by focusing on

sound macroeconomic policies, structural and regulatory reform, financial and

corporate restructuring, foreign direct investment, and open markets.”127 The origins

of the Partnership concept are in proposals made in the fall of 2000 by Japan’s

Ministry of Economy, Trade, and Industry (METI) and the Ministry of Foreign Affairs

(MOFA).128 In accordance with these proposals, the top of the new Partnership is a

senior-level forum chaired on the U.S. side by the National Security Council and on the

Japanese side by MOFA. This U.S.-Japan Subcabinet Economic Dialogue consists of

officials at the Deputy/Vice Ministerial level from key economic agencies who are to

meet to set the overall tone of the economic relationship and to deal with a full range of

U.S.-Japan issues. For example, this group is to address macroeconomic and

structural issues facing the two economies and cooperate on such issues as APEC and

the WTO.

A Private Sector/Government Commission (“Commission”) was set up to better

integrate private sector views and recommendations into the two governments’ work.

This Commission consists of private sector participants from leading industries in the

United States and Japan who are to meet with senior government officials to offer

recommendations on bilateral issues.129

Several new initiatives were started under the Partnership: the Regulatory Reform and

Competition Policy Initiative (“Regulatory Reform Initiative”), the Investment Initiative,

the Financial Dialogue, and the Trade Forum. The Regulatory Reform Initiative is

designed to promote economic growth by focusing on sectoral and cross-sectoral

issues related to regulatory reform and competition policy. This initiative replaces the

126 USTR, “U.S. and Japan Launch New Forum to Address Bilateral Automotive Issues,” press

release 01-85, Oct. 18, 2001.

127 USTR, “The U.S.-Japan Economic Partnership for Growth,” fact sheet, June 30, 2001.

128 “’W’ Produces a new SII,” The Oriental Economist, July 2001.

129 USTR, “The U.S.-Japan Economic Partnership for Growth,” fact sheet, June 30, 2001; and The

White House, “Annex to U.S.-Japan Joint Statement U.S.-Japan Economic Partnership for Growth,”

Camp David, June 30, 2001.
4-26

Enhanced Initiative on Deregulation and Competition Policy established in 1997.130

The new Regulatory Reform Initiative is to build upon the work of the Enhanced Initiative

and to focus on key sectors and cross-sectoral issues in which reforms are taking place.

A high level Officials Group was to be established to oversee the working groups.

Annual reports are to be submitted to the President and the Prime Minister describing

the progress made under the Regulatory Reform Initiative, including measures to be

taken by both governments. Four sectoral working groups (telecommunications,

information technologies, energy, and medical devices/pharmaceuticals) and one

cross-sectoral working group was established to address measures to promote

regulatory reform and competition policy. The cross-sectoral working groups were to

address such topics as competition policy, transparency, legal reform, commercial

code issues, distribution, customs clearance procedures, and business facilitation.

Additional working groups may be established in the future.131 On October 16, as part

of the Regulatory Reform Initiative, the United States submitted wide-ranging reform

recommendations to Japan designed to further deregulate the economy, bolster

competition, and open markets in Japan.132 The recommendations focused on key

sectors and cross-cutting areas that Prime Minister Koizumi and the Government of

Japan have identified as important for reform such as information technologies,

telecommunications, medical, energy, and competition policy. Working Groups under

the Regulatory Reform Initiative began meeting in the fall and a deputies-level meeting

was to take place in early 2002.133

The Financial Dialogue is to serve as a forum for the Department of the Treasury and

the Ministry of Finance and the Financial Services Agency to exchange views on a

range of macroeconomic and financial sector issues of mutual importance, including

banks’ nonperforming loans. The first topic to be considered is Japan’s debt

problem.134

The Investment Initiative is to address laws, regulations, policies, and other measures

designed to improve the environment for direct investment in both countries. Some of

the issues to be addressed by the initiative included the structure and operation of

corporations, corporate governance, corporate transparency, bankruptcy, labor

mobility, and land market liquidity.135

The Trade Forum is to address a broad range of sector issues including those related to

the manufacturing, services and agricultural sectors. This Forum is to serve as an

“early-warning” mechanism to facilitate expeditious resolution of emerging trade

problems. The Forum is to meet once a year and more frequently as necessary; and it

will be chaired by USTR and MOFA.136

130 For background information on the Enhanced Initiative on Deregulation and Competition Policy,

see USITC, The Year in Trade: OTAP 1998, USITC pub. 3192, pp. 62-63.

131 The White House, “Annex to U.S.-Japan Joint Statement U.S.-Japan Economic Partnership for

Growth,” Camp David, June 30, 2001.

132 USTR, “United States Presents Wide-Ranging Reform Proposals in Japan,” press release 01-83,

Oct. 16, 2001.

133 Ibid.

134 USTR, “The U.S.-Japan Economic Partnership for Growth,” fact sheet, June 30, 2001; and The

White House, “Annex to U.S.-Japan Joint Statement U.S.-Japan Economic Partnership for Growth,”

Camp David, June 30, 2001.

135 Ibid.

136 Ibid.
4-27

The new Partnership resembles the Structural Impediments Initiative (SII) launched

during 1989; however, there are differences in purpose. The original SII was aimed at

increasing market access for U.S. exports. The new Partnership is aimed at helping to

revive Japanese economic growth.137

Several meetings under the new Partnership were held before the end of 2001. Some

examples of the topics addressed in the meetings were economic issues (the disposal of

bad loans by Japanese banks and foreign exchange), reform of Japan’s health care

system (changes in pharmaceutical and medical device pricing), and deregulation.

The discussions were expected to continue in 2002.138

China

Fourteen years after applying for readmission to the WTO’s predecessor, the GATT,

the People’s Republic of China completed all bilateral and multilateral negotiations,

and on December 11, 2001, became the 143rd member of the international trading

body. With China in the WTO, the United States continues to monitor the U.S.-China

trade relationship closely. This effort includes technical assistance programs for

Chinese business leaders and government trade authorities to increase knowledge

and understanding of WTO rules and commitments. In addition, the U.S. Government

is using an interagency approach to measure and ensure Chinese compliance with its

many WTO commitments.

Trade with the United States

The U.S. merchandise trade deficit with China was $84.1 billion in 2001, a 0.2 percent

decrease from the 2000 deficit. Total U.S. domestic exports to China increased by 17.1

percent in 2001 to $18.0 billion, while U.S. imports for consumption rose by 2.5 percent

to $102.1 billion.139 China ranked fifth in terms of total trade turnover with the United

States in 2000, behind the EU, Canada, Mexico, and Japan. The sectors with the

largest exports to China included machinery and transport equipment, chemicals and

related products, crude materials, and miscellaneous manufactured articles. The

leading exports to China, classified by schedule B numbers included airplanes and

other aircraft, soybeans, semiconductors, fertilizers, and automated data processing

machines (table A-14). The sectors with the largest U.S. imports from China included

miscellaneous manufactured articles, machinery and transport equipment,

manufactured goods classified by material, and chemicals and related products. The

leading imports from China, classified by schedule B numbers included parts for

automated data processing machines, footwear, toys, articles for Christmas festivities,

and video recorders (table A-15).

137 “’W’ Produces a new SII”, The Oriental Economist, July 2001. For background information on SII,

see USITC, The Year in Trade: OTAP, 42nd Report, 1990, USITC publication 2403, 1991, pp. 118-19.

138 Bureau of National Affairs, Inc., “Japan, U.S. Set Sept. 15 for First Meeting of Economic Dialogue

Initiative, Officials Say,”, International Trade Daily, Sept. 4, 2001 and “U.S. Urges Health Care System

Reform in Japan,” Washington Trade Daily, Oct. 29, 2001

139 U.S. Department of Commerce official trade statistics.
4-28

After posting 28-percent annual export growth to the world in 2000, Chinese exports

slowed to 6.8-percent annual growth, short of the government target of 8.0 percent

export growth. Similarly, Chinese imports from the world slowed from 36-percent

annual growth in 2000 to 8.2-percent growth in 2001. China maintained an overall

trade surplus, but the large decrease in trade helped slow overall Chinese GDP growth

rate to its lowest level in a decaade, 7.3 percent.140

WTO Accession

The World Trade Organization (WTO) members formally approved an agreement on

the terms of accession for the People’s Republic of China on November 10, 2001, at the

WTO Ministerial Conference in Doha, Qatar. A day later, China signed this

agreement and deposited its instrument of ratification with the Director-General of the

WTO. President Bush welcomed the Ministerial decision, saying the entry of China and

Taiwan141 into the WTO “will strengthen the global trading system and expand world

economic growth.”142

On January 1, 2002, China Custom Announcement No. 22 came into force,

implementing China’s WTO accession import schedule. The new schedule cuts the duty

on 5,332 of the 7,316 products listed in China’s harmonized tariff schedule. The

average rate for nations accorded most-favored-nation (MFN) status decreased from

15.3 percent to 12.0 percent. The average MFN tariff rate for industrial products in

China is now 11.6 percent. Crude and refined oil now face 6.1 percent duties; chemical

products 7.9 percent; timber and paper products, 8.9 percent; machinery, 9.6

percent; and electronic products, 10.7 percent. The average rate for agricultural

products is now 14.3 percent.143 Tariffs on industrial goods of greatest importance to

U.S. businesses will be reduced from a base average of 25 percent to 7 percent.144

According to the Office of the U.S. Trade Representative, substantive highlights of

China’s WTO accession commitments include:145

H China has committed to undertake systematic reforms that will promote

transparency, predictability, and fairness in business dealings.

H China will assume the obligations of more than 20 existing multilateral WTO

agreements, with only minimal transition periods where necessary.

140 U.S. Department of State telegram, “China 2002 National Trade Estimate Report, Embassy

Draft,” message reference number 000668, prepared by U.S. Embassy, Beijing, China, Jan. 25, 2002.

141 Taiwan enters the WTO as part of a separate customs territory, which includes Taiwan, Penghu,

Kinmen, and Matsu. See WTO, “WTO successfully concludes negotiations on entry of the Separate

Customs Territory of Taiwan, Penghu, Kinmen and Matsu,” Found at internet address

http://www.wto.org., retrieved Mar. 13, 2002.

142 The White House, Office of the Press Secretary, “President Welcomes China, Taiwan into the

WTO,” press release, Nov. 11, 2001.

143 U.S. Department of State telegram, “WTO Implementation: Tariff Rates Come Down, Finally,”

message reference number 00120, prepared by U.S. Embassy, Beijing, China, Jan. 4, 2002.

144 USTR, China, Hong Kong, Mongolia, Taiwan: China’s Accession to the WTO,” found at Internet

address http://www.ustr.gov, retrieved January 25, 2002.

145 Ibid.
4-29

H China has made numerous trade-liberalizing commitments that take into

account the special characteristics of China’s economy and will help improve

market access across sectors.

H China will make substantial tariff reductions on industrial and agricultural

goods of importance to U.S. businesses and farmers.

H China has made far-reaching services commitments that should substantially

increase market access for U.S. services suppliers.

H With regard to the enforcement of China’s commitments, the accession

agreement creates a special multilateral mechanism for reviewing China’s

compliance on an annual basis, and it confirms that dispute settlement is a tool

that is available to WTO members.

H China has consented to the creation of special safeguard mechanisms to

protect businesses, farmers, and workers of existing WTO members.146

China’s Compliance

Following China’s accession to the WTO, a new focus of U.S. trade policy is monitoring

Chinese compliance with its WTO agreements. The President has set up a new

interagency working group led by the Office of the U.S. Trade Representative. The

group will work under the framework of the Trade Policy Staff Committee (TPSC), and

it held its first meeting on December 4, 2001. The TPSC system is a three-tiered system

for dealing with issues not quickly resolved in bilateral negotiations. The three levels

are comprised of a staff and subcommittee level, the deputy-level Trade Policy Review

Group (TPRG), and the cabinet level National Economic Council.147

A major component of the U.S. monitoring initiative will be conducted in China by the

U.S. Embassy staff in Beijing and U.S. consulates around China. The U.S. Embassy has

informed the China-WTO Compliance TPSC that it will require a number of new trade

policy staffing positions in China to meet the immediate requirements of compliance

monitoring. In this regard, the U.S. Congress has already appropriated funds to

establish four additional foreign commercial services (FCS) positions in China and one

additional foreign agricultural service (FAS) position. More staffing decisions are likely

to be made in the near future.148

146On December 18, 1998, the Office of the President and the U.S. Trade Representative requested

a study be conducted by the U.S. International Trade Commission on the effects of China’s entry into the

WTO. See USITC, Assessment of the Economic Effects on the United States of China’s Accession to the

WTO, USITC publication 3229, Sept. 1999. Also see USTR, Summary of U.S.-China Bilateral WTO

Agreement, released Feb. 2, 2000.

147 Inside U.S.-China Trade. “U.S. Sets Up Interagency Group to Deal with China WTO

Compliance,” found at Internet address http://www.chinatradeextra.com, retrieved Jan. 25, 2002.

148 U.S. Department of State telegram, “USG Action Plan for WTO Compliance: Mission Human

Resource Requirements,” message reference number 000969, prepared by U.S. Embassy, Beijing,

China, Jan. 4, 2002.
4-30

U.S. Technical Assistance in China for WTO

Supplementing China’s own efforts to organize and educate its government and

business community on the language and rules of WTO membership, the Unites States

and several other countries are sponsoring programs in and outside of China. These

programs focus on basic WTO principles, such as national treatment, subsidies, and

dispute resolution mechanisms, and are aimed at helping China implement its WTO

obligations. A partial list of the foreign-sponsored WTO training programs in China

was compiled by the U.S.-China Business Council.149 Table 4-3 presents U.S.

Government-sponsored programs. Table 4-4 presents nongovernment-sponsored

programs and programs sponsored by other governments.

Taiwan

The World Trade Organization (WTO) members formally approved an agreement on

the terms of accession for the Separate Customs Territory of Taiwan Penghu, Kinmen

and Matsu on November 11, 2001, at the WTO Ministerial Conference in Doha,

Qatar. Noting that Taiwan is the 16th largest economy in the world, President Bush

predicted an expansion of world trade and economic growth, but reminded Taiwan

that it “faces challenges in implementing it’s WTO commitments.”150 The United States

welcomed the accession of Taiwan to the WTO, but continued to push Taiwan on

several trade related issues, the most significant being that of intellectual property

rights enforcement.

Trade with the United States

The U.S. merchandise trade deficit with Taiwan measured $16.6 billion in 2001, a

7.5-percent decrease from 2000. Total U.S. domestic exports to Taiwan decreased by

25.8 percent in 2001 to $16.6 billion, while U.S. imports for consumption decreased by

17.6 percent to $33.3 billion.151 Taiwan ranked ninth in terms of total trade turnover

with the United States in 2001. The sectors with the largest exports to Taiwan included

machinery and transport equipment, chemicals and related products, crude materials,

and miscellaneous manufactured articles. The sectors with the largest U.S. imports

from Taiwan included miscellaneous manufactured articles, machinery and transport

equipment, manufactured goods classified by material, and chemicals and related

products.

Reflecting the global economic slowdown, Taiwan’s exports to the world decreased

17.3 percent in 2001, after annual growth of 23.2 percent the year before. Similarly,

in 2001, Taiwan’s imports from the world decreased by 23.8 percent, after annual

growth of 29.1 percent in 2000.152

149 U.S. Department of Commerce official trade statistics.

150 Taiwan Ministry of Economic Affairs, Board of Foreign Trade, found at Internet address

http://www.moeaboft.gov.tw, retrieved Mar. 13, 2002.

151 The China Business Review, “WTO at Last: Foreign Contributions to WTO Capacity Building,”

Jan.-Feb. 2002, pp. 10–11.

152 The White House, Office of the Press Secretary, “President Welcomes China, Taiwan into the

WTO,” press release, Nov. 11, 2001.
4-31

Table 4-3

Selected U.S. Government-supported WTO training events for China,

2001

Sponsor City Date Training event

Department of

Commerce/

U.S. and

Foreign

Commercial

Service

Beijing December 2001 Presentation by American Bar Association on

telecommunications regulatory issues

post-WTO

Lanzhou,

Gansu

December 2001 WTO basics and dispute resolution for Gansu

government and business leaders

Shijiazhuang,

Hebei

November 2001 WTO basics for Hebei provincial officials and

enterprise representatives

Beijing November 2001 WTO basics for Beijing Administrative

College Staff

Chongqing November 2001 WTO basics for Chongqing city officials and

entrepreneurs

Tianjin October 2001 WTO basics and antidumping for Tianjin

officials and business leaders (joint with

U.S. China-Business Council)

Kunming,

Yunnan

September 2001 Workshop on quality systems and standards

for medical device regulations

Beijing August 2001 Telecom standardization issues

Hangzhou,

Zhejiang,

Shenyang,

Liaoning,

Xiamen,

Fujian

July 2001 Series of IPR events to train PRC officials on

TRIPs issues and prosecution of violators

Guiyang,

Guizhou

Chengdu,

Sichuan

Beijing,

Wuhan,

Hubei

Xi’an,

Shaanxi

July 2001

June 2001

May 2001

April 2001

Workshops on WTO principles, globalization, investment, and transparency issues

with various speakers

Public Affairs

Section

(US Embassy)

Beijing June 2001 IPR enforcement training delegation

Xi’an,

Shaanxi

January 2001 Training for judicial officers

Agricultural

Section

(US Embassy)

USA May 2001 Training for judicial officers

See footnotes at end of table.
4-32

Table 4-3—Continued

Selected U.S. Government-supported WTO training events for China,

2001

Sponsor City Date Training event

U.S. Consulate

in Shanghai

Shanghai April 2001 WTO dispute resolution seminar

Shanghai December 2000 WTO dispute resolution seminar for

Hangzhou officials

Shanghai October 2000 Lecture on legal aspects of WTO entry

Shanghai March 2000 WTO assessment seminar

U.S. Customs

Service

(U.S. Embassy)

2001 Training for enforcement officials

State of Hawaii Hawaii August 2001 Use of law school resources at the University

of Hawaii to discuss WTO impact at local

and regional levels

Note.—MOFTEC is Ministry of Foreign Trade and Economic Cooperation.

Source: U.S.-China Business Council.
4-33

Table 4-4

Selected Non-Government-supported, and foreign-supported WTO

training events for China

Sponsor City Date Training event

The U.S.-China

Business Council

Beijing November 2001 WTO book and translation donation to

MOFTEC (joint with US embassy and

Ford Foundation)

Shanghai 2000-02 Digital video-conferences with Shanghai

WTO Affairs Consulting Center

The Ford

Foundation

Washington, DC Fall 2000, 2001 Training of Chinese officials in two-week

intensive programs

Asian Development BankOngoing Cooperating with MOFTEC under

“Technical Assistance to the PRC on

WTO Membership and Foreign Trade

Law Reform,” program

Asia Foundation Ongoing Assisting legal education through support

of PRC National Legal Aid Center

World Bank Distance

Learning

August 2001 Five weeks of programs in more than 10

cities on international trade and WTO

accession

Georgetown

University

Washington, DC 2001 WTO law and policy courses for PRC

officials

Harvard

University

Kennedy School

of Government

China Public

Policy Program

Cambridge, MA Ongoing Training and related seminars for PRC

Officials

European Union Beijing 2000-2003

1998-2003

EU-China program for China’s accession

to WTO

EU-China Intellectual Property Rights

Seminar

United Kingdom Beijing 2000-2004 British Council leads EU consortium in

EU-China Judicial Cooperation program

Germany Beijing 2000 Worked to establish WTO Inquiry Center

Beijing 1997-2000 German Technology Cooperation-led

assistance to PRC

Beijing 1997-2000 Sino-German cooperation in economic

law

Australia Beijing, Austalia 1998-2002 Training research, capacity building

Japan Ongoing Research and training projects in

industries such as insurance, tax,

agriculture, accounting, and logistics

Source: U.S.-China Business Council.
4-34

WTO Accession153

On December 11, 2001, the WTO Ministerial Conference announced the accession of

the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese

Taipei) on the terms set in the group’s accession protocol.154 On January 1, 2002,

Taiwan officially entered the World Trade Organization as its 144th member.155

In joining the WTO, Taiwan pledged to reduce tariff and nontariff barriers to trade.

Taiwan’s tariff concessions include:

H The average nominal tariff rate will be reduced from 7.0 percent in 2002 to

5.5 percent in 2007–an overall reduction of 32.6 percent and involving

4,491 tariff lines.

H The average nominal agricultural tariff rate will be reduced from 14.0 percent

in 2002 to 12.9 percent in 2007–an overall reduction of 35.8 percent and

involving 1,021 tariff items;

H The average nominal industrial tariff will be reduced from 5.8 percent in

2002 to 4.2 percent in 2004–an overall reduction of 31.2 percent and

involving 3,470 tariff items.156

Taiwan’s nontariff concessions include:

H Eliminate export subsidies and domestic subsidies to the agricultural sector;

H Abide by the multilateral rules on import licenses, quotas, import bans,

customs standards, sanitary and phytosanitary restrictions, and product

specifications;

H Abolish the liquor and tobacco monopoly;

H Open up the financial services market (banking, insurance, securities, foreign

exchange, and services) to foreign companies;

H Open up telecommunication services market to foreign companies; and

H Open up professional services market (law, accounting, construction,

education, real estate, and medical) to foreign competitors.157

153 Taiwan enters the World Trade Organization as part of a customs territory–The Separate

Customs Territory of Taiwan, Penghu, Kinmen, and Matsu.

154 World Trade Organization, “Accession of the Separate Customs Territory of Taiwan, Penghu,

Kinmen, and Matsu: Decision of 11 November 2001.” WTO Document WT/L/433, found at Internet

address http://www.wto.org, retrieved on Jan. 20, 2002.

155 Taiwan Studies Institute, “Taiwan Joins WTO, Opens Further to China,” found at Internet

address: http://www.taiwanstudies.org, retrieved Feb. 8, 2002.

156 Dr. Rong-I Wu. “Taiwan’s Future Economic Place in the World,” a paper presented at the

Taiwan: Economic Issues Ahead Conference, Center for Strategic and International Studies (CSIS),

Washington, D.C., Feb. 6, 2002.

157 Ibid.
4-35

U.S.-Taiwan Free Trade Agreement Act

On November 6, 2001, Senator Max Baucus (D-Montana) introduced legislation to

establish a free trade agreement with Taiwan. In his statement on the Senate floor,

Senator Baucus noted that Taiwan is an “important ally in the Asia-Pacific region.” The

bill introduced would authorize the President to begin negotiations on a Free Trade

Agreement (FTA) with Taiwan, and would provide fast-track consideration of a

completed agreement by the Congress.158

In a related action, the U.S. Senate Committee on Finance formally requested the U.S.

International Trade Commission to conduct an assessment of the economic effects of

the establishment of a free trade agreement between the United States and Taiwan.

Under section 332(g) of the Tariff Act of 1930, the Commission is asked to provide, to

the extent possible, the following:

H A general overview of the Taiwan economy;

H An overview of the current economic relationship between the United States

and Taiwan, including a discussion of the important industry sectors in each;

H An inventory and analysis of the barriers (tariff and nontariff) to trade

between the United States and Taiwan;

H The estimated economic effects of eliminating all quantifiable trade barriers

(tariff and non-tariff), with special attention to agricultural goods; and

H A qualitative assessment of the economic effects of removing nonquantifiable

trade barriers.

The Senate Committee on Finance asked that the Commission provide the report by

October 2002. The analysis should include a dynamic as well as a static analysis of the

economic effects of removing the barriers of trade between the United States and

Taiwan.159

Other Issues

While Taiwan has enacted many laws and policies meant to improve intellectual

property rights (IPR) protection, enforcement remains a subject of consultations with

the United States. Because of enforcement problems and pirating in Taiwan, in April

2001, Taiwan was upgraded from the United States Trade Representative’s Special

301 general watch list to the priority watch list.160 According to the USTR, despite

significant efforts of some in Taiwan to improve IPR protection, concrete results in key

158 Taiwan Studies Institute, “Baucus Introduces U.S.-Taiwan Free Trade Agreement Act,” found at

Internet address: http://www.taiwanstudies.org, retrieved Feb. 8, 2002.

159 United States Senate Committee on Finance, letter to the International Trade Commission

requesting a study on a U.S.-Taiwan Free Trade Agreement, Jan. 17, 2002.

160 U.S. Department of State telegram, “2001 Investment Statement-Taiwan Part 1,” message

reference number 02520, prepared by the American Institute in Taiwan, Taipei, July 13, 2001.
4-36

areas have not been achieved. These important areas include: 1) improving a

prejudicial climate in the Taiwan court system relative to the protection of foreign

copyright and patents, and 2) enforcing an effective system for placing identifying

marks on audio and video CDs as well as computer chips.161

Several U.S. Government delegations have visited Taiwan to discuss IPR issues. A USTR

delegation informed Taiwan in February 2001 that it would likely be moved to the

priority 301 list. During these consultations, the Taiwan Ministry of Justice, the Judicial

Yuan, the Taiwan Board of Foreign Trade, and the Intellectual Property Office

promised cooperation with U.S. IPR concerns. USTR thanked Taiwan authorities for

their efforts, but pointed to several examples of IPR problems, including a lack of

vigorous follow-up by Taiwan IPR prosecutors and judges, lack of police seizures of

counterfeit products, and specific problems in the Taiwan pharmaceuticals

industry.162

In January 2002, U.S. Assistant Secretary of Commerce William H. Lash became the

first official of this administration to visit Taiwan. As the head of the Department of

Commerce’s Market Access and Compliance Division, Lash praised Taiwan’s efforts in

reducing tariffs, lowering trade barriers, and increasing transparency. But Lash, too,

called for better enforcement of IPR protection in Taiwan. At a speech to the Center for

Strategic and International Studies in Washington, D.C., Lash said that although

Taiwan has implemented TRIPs-consistent statutory and regulatory infrastructure over

the past 15 years, the weak link in Taiwan is the judiciary.163

Korea

U.S.-Korean trade relations were again calm in 2001, reflecting the continued

relaxation of trade frictions in recent years. Korea has made progress in liberalizing

both its domestic economy and trade regime. The Korean economic crisis that began in

1997 and continued into 1998 spurred some liberalizations and also diverted attention

and energy away from trade frictions. President Kim Dae-jung, inaugurated in early

1998, has been more favorably inclined toward reform than previous presidents.

Also, the International Monetary Fund rescue package following the 1997 crisis called

for liberalizations as a condition of its loans. Korea’s economy rebounded strongly

from the slump that began in late 1997, growing by 10.9 percent in 1999, and by 8.8

percent in 2000, before registering growth of around 2.8 percent in 2001 as the

global economy slowed.164

161 USTR,.“Taiwan Issues Summary,” found at Internet address http://www.ustr.gov, retrieved

January 24, 2002.

162 U.S. Department of State telegram, “Taiwan: USTR-Led Delegation Slams Enforcement Efforts,”

message reference number 00802, prepared by the American Institute in Taiwan, Taipei, Mar. 13, 2001.

163 William H. Lash, Assistant Secretary of Market Access and Compliance, U.S. Department of

Commerce. Speech at the Center for Strategic and International Studies, Washington, D.C., Feb. 6,

2002. A copy of his remarks is available at internet address: http://www.csis.org. 164 Florence Lowe-Lee, “Economic Trends,” Korea Insight, Korea Economic Institute of America,

March 2000, March 2001, and February 2002.
4-37

There was one major bilateral trade issue involving the United States and Korea in

2001. In January, the WTO Dispute Settlement Body (DSB) adopted the findings and

recommendations with regard to Korea’s imports of beef reported by the WTO

Appellate Body in December 2000. In September, Korea brought its beef marketing

system into compliance, ending its system of separate stores for domestic and imported

beef.

U.S. trade with Korea totaled nearly $56 billion in 2001. U.S. exports to Korea fell 20.5

percent to $20.9 billion in 2001. U.S. imports fell less steeply, by 12.3 percent to $34.9

billion, resulting in a $14.0 billion U.S. trade deficit with Korea in 2001. Leading U.S.

exports to Korea in 2001 included metal oxide semiconductors, airplanes, aircraft

parts, and machines and mechanical appliances having individual functions (mostly

semiconductor production machinery). Leading U.S. imports from Korea include

automobiles, transmission apparatus incorporating reception apparatus (mostly

cellular phones), and metal oxide semiconductors. U.S.-Korea trade data are shown

in tables A-19 through A-21.165

Beef

In 1997, Korean imports of beef were below its annual minimum market access quota

of 167,000 metric tons. In 1998, Korea imported only 53 percent of its 187,000 metric

ton commitment.166 Meetings between the U.S. and Korean governments in

September and November 1998 and January 1999 failed to reach agreement on a

plan to establish a market-driven beef import system in Korea. The United States then

requested WTO dispute-settlement consultations on February 1, 1999. Because no

settlement was reached in consultations held in March, the United States requested the

formation of a WTO dispute-settlement panel, which was established in May.

Australia also filed a complaint, which was added to the U.S. complaint before the

dispute-settlement panel. The first meeting of the combined panel was held in

December 1999, and Canada and New Zealand became third parties to the

process.167

On July 31, 2000, the dispute-settlement panel circulated its report, which concluded

that Korea’s import regime for beef discriminates against imports from the United

States and other foreign suppliers, and that the excessive amount of subsidies that

Korea provides to its cattle industry violates its commitments to reduce domestic support

under the WTO Agreement on Agriculture.168 Korea appealed the ruling on

September 11, 2000.169

165 USITC, U.S. Korea FTA: The Economic Impact of Establishing a Free Trade Agreement (FTA)

Between the United States and the Republic of Korea, (Investigation No. 332-425), USITC publication

3452, Septemer 2001.

166 Korean commitments and existing bilateral agreements are discussed in the following section.

167 USTR, 2000 Trade Policy Agenda and 1999 Annual Report of the President of the United States

on the Trade Agreements Program, p. 202.

168 USTR, “WTO Panel Finds that Korea Maintains WTO-Inconsistent Restrictions on U.S. Beef

Imports,” press release 00-58, Aug. 2, 2000.

169 WTO, “Update of WTO Dispute Settlement Cases,” WT/DS/OV/4, Feb. 6, 2002, p. 76.
4-38

On December 11, 2000, the WTO Appellate Body issued its report regarding Korea’s

appeal. It upheld the dispute-settlement panel’s findings that Korea’s beef import

regime discriminates against imports from the United States and other foreign

suppliers, but ruled that the record in the panel’s report did not permit a determination

whether the level of domestic subsidies provided by Korea to agriculture in 1997 and

1998 were higher than permitted under the WTO Agreement on Agriculture.170

On January 10, 2001, the DSB adopted the Appellate Body findings and

recommendations.171 On February 1, 2001, Korea indicated its intentions to implement

the Appellate Body’s recommendations with respect to the dual retail system and that it

needed a reasonable period of time for implementation.172 On April 19, 2001, Korea

agreed to implementation by September 10, 2001.173 On September 7, 2001, Korea

announced the adoption of measures effective September 10, 2001, ending the dual

retail system for imported and domestic beef.174

Background

Korean beef imports have been governed by three agreements between Korea and

the United States negotiated in 1990 and 1993.175 These agreements stemmed from a

1989 GATT panel ruling that Korea could no longer justify restrictions on imports of

beef on balance-of-payments grounds. These restrictions had a long history and

consisted of a virtual ban on beef imports in the years leading up to the 1989 GATT

panel ruling.176 The agreements established a system to phase out Korean

Government involvement in the importation of beef by January 1, 2001.177 During the

phaseout period, retail sale of imported beef was only allowed in specially designated

stores that, with few exceptions, were not allowed to sell Korean beef.178 Stores were

required to display an exterior sign indicating what type of beef–domestic or

imported–they sold. Imported beef was excluded from about 90 percent of stores

170 USTR, “WTO Appellate Body Sustains Panel Finding That Korea Maintains WTO-Inconsistent

Restrictions on U.S. Beef Imports,” press release 00-86, Dec. 11, 2000.

171 WTO, Dispute Settlement Body, “Minutes of the Meeting Held in the Centre William Rappard on

10 January 2001,” WTO/DSB/M/96, Feb. 22, 2001, pp. 1-5.

172WTO, Dispute Settlement Body, “Minutes of the Meeting Held in the Centre William Rappard on 1

February 2001,” WTO/DSB/M/98, Mar. 20, 2001, p. 12.

173 WTO, “Korea - Measures Affecting Imports of Fresh, Chilled, and Frozen Beef (WT/DS161 and

WT/DS169): Agreement Pursuant to Article 21.3(b) of the DSU,” WT/DS161/12 and WT/DS169/12,

Apr. 24, 2001.

174U.S. Department of State telegram, “WTO Dispute Settlement Body Meeting 25 September 2001:

Instructions for U.S. Delegation,” message reference No. 165354, prepared by U.S. Department of State,

Washington, D.C., Sept. 24, 2001.

175 Australia and New Zealand were also parties to the 1990 agreement and the first of the two

1993 agreements.

176 USITC, Operation of the Trade Agreements Program: 40th Report, 1988, USITC publication

2208, July 1989, p. 129.

177 For more detail, see USITC, The Year in Trade: Operation of the Trade Agreements Program:

52nd Report, 2000, USITC publication 3428, June 2001, pp. 4-42 to 4-46.

178 At the WTO Dispute Settlement Body meeting of Feb. 1, 2001, where the dispute panel and

Appellate Body’s reports were adopted, Korea announced that it had already implemented some

elements of the dispute panel’s recommendations and that in order to complete the process it would need

a reasonable period of time. WTO, Dispute Settlement Body, “Minutes of the Meeting Held in the Centre

William Rappard on 1 February 2001,” WTO/DSB/M/98, Mar. 20, 2001, p. 12.
4-39

selling beef.179 The Korean contention was that the separate retail stores were

necessary to prevent the fraudulent sale of imported beef as Hanwoo (Korean) beef.

Korean imports of beef regularly exceeded the announced quota levels through

1996.180 There was a small shortfall in 1997, followed by a much larger one in 1998.

In 1998, Korea significantly expanded its domestic support to cattle producers in

reaction to the economic downturn. Subsequently, the United States initiated a series of

meetings to discuss market-oriented reforms in the beef import regime to offset Korea’s

failure to meet its minimum quota commitments,181 culminating in the establishment of

a WTO dispute-settlement panel in May 1999.182

In its complaint against Korea before the panel, the United States alleged a regulatory

scheme that discriminated against imported beef by, among other things, confining

sales of imported beef to specialized stores, limiting the manner of its display, and

otherwise constraining the opportunities for the sale of imported beef. The United

States contended that these restrictions applied only to imported beef, thereby denying

national treatment to beef imports, and that the support to the domestic industry

amounted to domestic subsidies that contravened the WTO Agreement on

Agriculture.183 The United States also alleged that Korea provided domestic support to

the cattle industry in Korea in amounts that caused Korea to exceed its aggregate

measure of support for agriculture as reflected in Korea’s WTO national schedule of

market-access concessions and commitments.

The main questions addressed by the dispute panel were: (1) what parts of Korea’s

beef import regime were consistent with its obligations to phase out restrictions on beef

imports undertaken for balance-of-payments reasons?, (2) did Korea’s state-trading

entity (the Livestock Products Marketing Organization–LPMO) improperly restrict its

sales of imported beef in 1997 and 1998?,184 and (3) was Korea’s support to domestic

cattle farmers in 1997 and 1998 correctly calculated, and if correctly calculated,

would it have pushed Korea over its commitment levels for total domestic support for

agriculture under WTO rules?

The dispute panel held that most elements of the beef import regime were inherent in

the phaseout of restrictions negotiated in the 1990 and 1993 agreements and were

therefore not contrary to WTO rules. The dual retail system for beef and differential

179U.S. Department of State telegram, “WTO Dispute Settlement Body Meeting 25 September 2001:

Instructions for U.S. Delegation,” message reference No. 165354, prepared by U.S. Department of State,

Washington, DC, Sept. 24, 2001.

180 WTO, “Korea-Measures Affecting Imports of Fresh, Chilled, and Frozen Beef: Report of the

Panel,” WT/DS161/R, WT/DS169/R, July 31, 2000, p. 49.

181 U.S. Department of State telegram, “Instructions for U.S. Delegation to the WTO Committee on

Agriculture, March 25-26, Geneva,” message reference No. 52844, prepared by U.S. Department of

State, Washington, D.C., Mar. 23, 1999.

182 Korean beef imports rebounded significantly in 1999 and 2000. U.S. exports of beef to Korea

were higher in 1999 than in any previous year in the 1990s: double the 1998 figure and 17 percent higher

than the previous peak in 1995. U.S. exports in 2000 were 35 percent higher than in 1999.

183 WTO, “Update of WTO Dispute Settlement Cases,” WT/DS/OV/4, Feb. 6, 2002, p. 75.

184 Since the dispute panel was formed in May 1999, Korean imports of beef in 1999 were not an

issue considered by the panel.
4-40

record-keeping and labeling requirements for imported beef were held to be in

violation of WTO rules.

The dispute panel held that the LPMO improperly restricted its sales of imported beef in

1997 and 1998. It also held that Korea’s support to domestic cattle farmers in 1997 and

1998 was not correctly calculated. Using a methodology supplied by New Zealand to

compute the support levels for beef, the panel found that Korea exceeded its WTO

aggregate measures of support commitment in those years.185 The December 2000

Appellate Body ruling upheld all of the panel report findings except for those

regarding the computation of domestic support for beef. The Appellate Body held that,

although Korea did not correctly calculate its domestic support for beef for 1997 and

1998, the methodology used by the dispute panel to recalculate the support level was

not correct, and there was insufficient information in the dispute panel report to allow a

correct calculation. Therefore it was not possible to rule on whether Korea exceeded its

aggregate measures of support commitment.186

Of the restrictions on imports of foreign beef that were subject to the U.S. complaint,

only the system of separate stores for foreign and Korean beef remained after

January 1, 2001.187 Korea was given a reasonable period of time to consult with the

United States and Australia on implementing the elimination of the dual retail

system.188 On April 19, 2001, the United States and Australia reached an agreement

with Korea that Korea would have until September 10, 2001 to bring its beef retail

system into compliance with WTO rules.189

On September 7, 2001, Korea announced that it was adopting measures abolishing

the dual retail system for domestic and imported beef, effective September 10,

2001.190 Under new regulations, beef in the display case must be properly labeled as

to whether it is domestic or imported, but outdoor signage is no longer relevant. In

addition, retailers must keep records for both taxation and fraud prevention

purposes.191

185 WTO, “Korea–Measures Affecting Imports of Fresh, Chilled, and Frozen Beef: Report of the

Panel,” WT/DS161/R and WT/DS169/R July 31, 2000, pp. 200-201.

186 WTO, “Korea–Measures Affecting Imports of Fresh, Chilled, and Frozen Beef: Report of the

Appellate Body,” WT/DS161/AB/R, WT/DS169/AB/R, Dec. 11, 2000, pp. 56-57.

187 U.S. Department of State telegram, “WTO Dispute Settlement Body Meeting 1 February 2001:

Instructions for U.S. Delegation,” message reference No. 18294, prepared by U.S. Department of State,

Washington, D.C., Feb. 7, 2001.

188 Ibid.

189 WTO, “Korea - Measures Affecting Imports of Fresh, Chilled, and Frozen Beef (WT/DS161 and

WT/DS169): Agreement Pursuant to Article 21.3(b) of the DSU,” WT/DS161/12 and WT/DS169/12,

Apr. 24, 2001.

190U.S. Department of State telegram, “WTO Dispute Settlement Body Meeting 25 September 2001:

Instructions for U.S. Delegation,” message reference No. 165654, prepared by U.S. Department of State,

Washington, D.C., Sept. 24, 2001.

191 U.S. Department of State telegram, “September 20-21 trade consultations with South Korea:

Agriculture,” message reference No. 167438, prepared by U.S. Department of State, Washington, D.C.,

Sept. 26, 2001. It is unclear exactly for how long records must be kept; the Director General for Bilateral

Trade Affairs in the Ministry of Foreign Affairs and Trade, Kim Jong-hoon, has stated that the records

must be kept for 2 years, whereas U.S. Embassy reporting suggests that the Ministry of Agriculture and

Forestry believes that records must by kept for only 1 year.
4-41

Brazil

U.S.-Brazilian bilateral trade relations continue to be influenced by Brazil’s

membership in the Southern Common Market (Mercosur) customs union,192 and by

ongoing negotiations for the Free Trade Area of the Americas (FTAA).193 Brazil

ranked as the 12th largest export market for the United States in 2001, and was the

15th largest U.S. supplier in the year. U.S. exports to Brazil totaled $14.7 billion in

2001, a 4.5 percent increase from 2000, while U.S. imports from Brazil totaled $14.4

billion, a 5.0 percent increase from 2000. Leading U.S. exports to Brazil in 2001

included aircraft and aircraft parts and computer parts and accessories. Leading U.S.

imports from Brazil included aircraft, footwear, and petroleum. U.S.-Brazilian trade

data are shown in tables A-22 to A-24.

Bilateral Consultative Mechanism Launched

One outcome of a March 30, 2001 meeting between President Bush and Brazil’s

President Fernando Henrique Cardoso was the creation of a bilateral consultative

mechanism on trade and investment. The mechanism was created to institutionalize the

bilateral trade dialogue and resolve outstanding bilateral conflicts.194 The first

meeting under the consultative mechanism, held July 19-20, 2001, addressed

multilateral issues such as priorities for the WTO Doha ministerial meeting, regional

issues such as the FTAA and Western Hemisphere regional trade negotiations, and

bilateral issues including Brazilian concerns about U.S. policies with respect to trade in

steel195 and U.S. concerns about drug patent protection in Brazil, discussed in more

detail below.196

192 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 and Chile participate in

the Mercosur free trade area, but not in the common external tariff scheme. Mercosur became operative

Jan. 1, 1995.

193 The FTAA is discussed in more detail in chapter 3.

194 U.S. Department of State telegram, “U.S.-Brazil Bilateral Trade Consultative Mechanism

Meeting,” message reference No. 02708, prepared by U.S. Embassy, Brasilia, Aug. 7, 2001.

195 Brazil subsequently filed a WTO complaint against the United States on Sept. 18, 2001, and

requested that bilateral consultations be held, concerning certain practices in U.S. antidumping

investigations. Brazil revised that complaint on Nov. 1, 2001, to address its specific concerns with respect

to U.S. antidumping duties imposed on imports of silicon metal from Brazil. WTO, “United States

Anti-Dumping Duties on Silicon Metal from Brazil, Request for Consultations by Brazil, ”

WT/DS239/1Rev.1, Nov. 7, 2001, and “United States: Certain Measures Regarding Anti-Dumping

Methodology, Request for Consultations by Brazil,” WT/DS239/1, Sept. 21, 2001, found at Internet

address http://www.wto.org/english/tratop_e/dispu_e/distabase_wto_members1_e.htm, retrieved

Feb. 26, 2002.

196 U.S. Department of State telegram, “U.S.-Brazil Bilateral Trade Consultative Mechanism

Meeting,” message reference No. 02708, prepared by U.S. Embassy, Brasilia, Aug. 7, 2001.
4-42

Patent Protection: HIV/AIDS Drugs

On June 25, 2001, the United States and Brazil jointly announced that they had

reached a mutually satisfactory solution to a U.S. complaint filed with the WTO with

respect to Brazil’s industrial property law.197 The United States had complained in the

WTO that Article 68 of Brazil’s industrial property law contained a TRIPs-inconsistent

provision that does not allow imports as a means of satisfying the requirement that the

patent be “worked” in Brazil; as a result, foreign patent holders could be subject to

compulsory licensing under which others would be allowed to use the patent against

the patent holder’s wishes. Underlying this trade dispute were Brazil’s efforts to lower

the prices charged by multinational pharmaceutical companies for antiretroviral

medications used to treat human immunodeficiency virus (HIV), the virus that causes

acquired immune deficiency syndrome (AIDS), as part of Brazil’s national HIV/AIDS

program that provides universal free access to antiretroviral medications.198

Under the terms of the U.S.-Brazilian agreement, the United States expressed support

for Brazil’s HIV/AIDS program and withdrew its WTO complaint in exchange for a

Brazilian pledge to discuss in advance with the United States any plans to apply Article

68 to grant compulsory licenses on patents held by U.S. companies. Both sides agreed

that bilateral discussions on the issue would be held within the scope of the U.S.-Brazil

bilateral consultative mechanism discussed above.199

197WTO, “Brazil: Measures Affecting Patent Protection, Notification of Mutually Agreed Solution,”

found at Internet address http://www.wto.org/english/tratop_e/dispu_e/distabase_wto_

members1_e.htm, retrieved Feb. 20, 2002.

198 The U.S. complaint against Brazil, filed with the WTO on May 20, 2000, was with respect to

Article 68 of Brazil’s industrial property law (Law No. 9,279 of May 14, 1996, which entered into force

May 15, 1997) concerning patents, designs, and trademarks. For further information, see USITC, The

Year in Trade, 2000, USITC Publication 3428, p. 4-47.

199 USTR, “United States and Brazil agree to use newly created consultative mechanism to promote

cooperation on HIV/AIDS and address WTO patent dispute,” press release 01-46, June 25, 2001 and

WTO, “Brazil: Measures Affecting Patent Protection, Notification of Mutually Agreed Solution.”
5-1

CHAPTER 5

Administration of U.S. Trade Laws

and Regulations

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

2001. It covers: the import relief laws; the unfair trade laws; certain other trade

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

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

Partnership Act (CBPTA), the Andean Trade Preference Act (ATPA), and section 232 of

the Trade Expansion Act of 1962 on impairment of national security; programs

affecting textile and apparel imports; and U.S. trade sanctions.

Import Relief Laws

The United States has enacted several safeguard laws, 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 1974.1 U.S. bilateral action safeguard laws are set forth in

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 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

The U.S. International Trade Commission conducted one new investigation under the

U.S. global action safeguard law during 2001, with respect to imports of certain steel

products, and made affirmative determinations (or was equally divided in its

determinations) with respect to 16 of the 33 products under investigation, and made

negative determinations with respect to the remaining 17 products.6 The Commission

conducted the investigation at the request of the United States Trade Representative

and the Committee on Finance of the United States Senate. The Commission sent its

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.

6 Steel, Investigation No. TA-201-73, USITC Pub. 3479 (December 2001).
5-2

report, including its injury determinations and remedy recommendations, to the

President in December 2001, and provided additional information to the President in

January and February 2002. In early March 2002, the President announced that he

would impose increased tariffs or tariff-rate quotas on 14 steel products, and those

measures became effective March 20, 2002.7

In response to the announcement of U.S. measures, several steel exporters to the U.S.

market requested consultations with the United States under the WTO Safeguards

Agreement, and following their implementation requested consultations with the

United States under the WTO Dispute Settlement Understanding (DSU). On April 11,

2002, the United States held consultations under the DSU with the European Union,

Japan, Korea, China, Switzerland, and Norway in Geneva. In further response to the

U.S. measures, the EU announced on March 27, 2002,8 that it would apply its own

safeguard measures, in the form of provisional measures, against certain steel imports

into the EU; on April 5, 2002, the United States requested consultations with the EU

regarding those measures. The EU also announced that it might take retaliatory action

against the U.S. measures as early as June 18, 2002, without waiting for a ruling from

a WTO panel and the WTO Appellate Body, and began drawing up a list of possible

products.9

The United States had two global safeguard measures in place at the end of 2001, on

imports of steel wire rod10 and welded line pipe,11 and during the year allowed one

safeguard measure to expire (wheat gluten) and terminated a second measure (lamb

meat).12 During the year the Commission initiated and/or completed five

investigations under section 204 of the Trade Act with respect to these measures: three

mid-term monitoring investigations, with respect to developments in the domestic lamb

meat industry,13 steel wire rod industry,14 and the welded line pipe industry;15 an

investigation with respect to whether a safeguard measure should be extended (wheat

7 The 14 products 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 measure to imports from Canada, Israel, Jordan, and 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 Fed. Reg. 10553 (Mar. 7, 2002).

8 Commission Regulation (EC) No 560/2002 of 27 March 2002 imposing provisional safeguard

measures against imports of certain steel products, Official Journal L 085, Mar. 28, 2002; European

Commission, “EU adopts temporary measures to guard against floods of steel imports resulting from US

protectionism,” press release I/02/484, Mar. 27, 2002.

9 Financial Times, Apr. 20-21, 2002.

10 In November 2001, the President modified the measure to allocate the in-quota quantity of the

tariff-rate quota. See Proclamation 7505 of Nov. 21, 2001, 66 Fed. Reg. 59353 (Nov. 28, 2001).

11 In May 2001, the President modified the measure with respect to the quota year to which certain

imports would be charged. See Proclamation 7445 of May 30, 2001, 66 Fed. Reg. 30053 (June 4,

2001).

12 Proclamation 7502 of Nov. 14, 2001, 66 Fed. Reg. 57837 (Nov. 19, 2001), terminating the lamb

meat measure.

13 Lamb Meat, Investigation No. TA-204-3, USITC Pub. 3389 (Jan. 2001).

14 Certain Steel Wire Rod, Investigation No. TA-204-6, USITC Pub. 3451 (Aug. 2001).

15 Certain Circular Welded Carbon Quality Line Pipe: Monitoring Developments in the Domestic

Industry, Investigation No. TA-204-5, USITC Pub. 3450 (Sept. 2001).
5-3

gluten);16 and an investigation evaluating the effectiveness of an import relief measure

(wheat gluten).17 The Commission also initiated and completed a “surge” investigation

under section 312 of the NAFTA Implementation Act with respect to whether imports of

steel wire rod from Canada and Mexico, which were excluded from the global

safeguard measure on steel wire rod, were undermining the effectiveness of the

measure; the Commission made an affirmative determination by a vote of 4-2,18 but

the President in November 2001 decided not to extend the measure to Canada and

Mexico.

The U.S. wheat gluten safeguard measure was challenged by the European Union

under the WTO dispute settlement procedures in mid-1999. In July 2000, the WTO

panel formed to review the matter found that certain aspects of the U.S. measure,

including certain U.S. International Trade Commission injury findings, were

inconsistent with U.S. WTO obligations. The United States and European Union

appealed certain panel findings, and the WTO Appellate Body in December 2000

affirmed in part and reversed in part findings of the panel.19 The Appellate Body’s

report was adopted by the WTO Dispute Settlement Body on January 19, 2001, and

under WTO rules the United States was given until February 18, 2001, to explain how it

intended to bring its measure into conformity with the Appellate Body’s ruling. In

response to the Appellate Body’s ruling and continuation of the U.S. wheat gluten

safeguard measure, effective January 24, 2001, the European Union imposed

retaliatory measures on imports of corn gluten. Under the 1998 U.S. action

establishing the measure, the measure was to terminate on June 1, 2001, unless

extended by the President; the President did not extend the measure, and it

accordingly terminated on June 1, 2001. The U.S. Administration substituted a 2-year,

$40 million program for the industry, to be administered and funded by the U.S.

Department of Agriculture, to provide funding for marketing, product development,

and capital expenditures.20

The U.S. safeguard measures on lamb meat and welded line pipe were also

challenged under WTO dispute settlement procedures. In October 1999, Australia

and New Zealand requested the establishment of a panel to review the U.S. lamb meat

measure, including certain U.S. International Trade Commission injury findings, and a

panel was established in November 1999 and constituted in March 2000. In

December 2000, the panel found certain aspects of the U.S. measure to be inconsistent

with U.S. WTO obligations.21 The United States, Australia, and New Zealand

appealed certain panel findings in January 2001, and the findings of the panel were

16 Wheat Gluten: Extension of Action, Investigation No. TA-204-4, USITC Pub. 3407 (Apr. 2001).

The Commission made an affirmative determination regarding a need to extend, and recommended that

the President extend the measure. The President did not extend the measure.

17Wheat Gluten: Evaluation of the Effectiveness of Import Relief, Investigation No. TA-204-7, USITC

Pub. 3478 (Nov. 2001).

18 Certain Steel Wire Rod, Investigation No. NAFTA-312-1, USITC Pub. 3453 (Sept. 2001).

19 United States – Definitive Safeguard Measures on Imports of Wheat Gluten from the European

Communities, Report of the Appellate Body, WT/DS166/AB/R (Dec. 22, 2000).

20 USTR, “Bush Administration Helps Wheat Gluten Industry Restore Its Competitiveness,” press

release 01-33, June 1, 2001, found at Internet address

http://www.ustr.gov/releases/2001/06/01-33.html, retrieved on May 30, 2002.

21 United States – Safeguard Measures on Imports of Fresh, Chilled, or Frozen Lamb Meat from

New Zealand and Australia, WT/DS177/R (Dec. 21, 2000).
5-4

substantially affirmed by the Appellate Body in May 2001. Under an agreement with

Australia and New Zealand, the United States agreed to terminate the measure

effective November 15, 2001,22 and implemented as assistance program for the

domestic lamb industry to provide an additional $42.7 million in assistance through

fiscal year 2003 to help the industry continue adjusting to import competition.23

The U.S. welded line pipe safeguard measure, including certain U.S. International

Trade Commission injury findings, was challenged by Korea under the WTO dispute

settlement procedures in early 2001. In October 2001, the WTO panel formed to

review the matter found that certain aspects of the U.S. measure were inconsistent with

U.S. WTO obligations. The United States and Korea appealed certain panel findings,

and the WTO Appellate Body in February 2002 affirmed in part and reversed in part

findings of the panel.24 The Appellate Body’s report was adopted by the WTO Dispute

Settlement Body on March 8, 2002.

Adjustment Assistance

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

Act of 1974, authorizes the U.S. Secretaries of Commerce and Labor to provide trade

adjustment assistance to firms and workers who are adversely affected by increased

imports. Initially authorized under the Trade Expansion Act of 1962, the program

authorization expired on September 30, 2001; however, funds were appropriated to

continue program operations in FY 2002. In 1993, a new subchapter was added to the

TAA provisions to provide transitional assistance to workers separated, or threatened

to be separated, from their employment as a result of increased imports from, or shifts

in production to, Canada or Mexico under the NAFTA.25

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, and training. Industrywide

technical consultation provided through U.S. Department of Commerce-sponsored

programs is designed to restore the economic viability of U.S. industries adversely

affected by international import competition.26

22 Proclamation 7502 of Nov. 14, 2001, 66 Fed. Reg. 57837 (Nov. 19, 2001).

23 USTR, “Bush Administration Settles Lamb Safeguard Issue with Australia & New Zealand,”

press release 01-66, Aug. 31, 2001, found at Internet address

http://www.ustr.gov/releases/2001/08/01-66.htm, retrieved on May 30, 2002.

24 United States – Definitive Safeguard Measures on Imports of Circular Welded Carbon Quality

Line Pipe from Korea, Report of the Appellate Body, WT/DS202/AB/R (Feb. 15, 2002).

25 Section 250 of the Trade Act of 1974 (19 U.S.C. 2331), as augmented by section 502 of the

NAFTA Implementation Act..

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

Assistance to Workers

The U.S. Department of Labor instituted 2,278 investigations during FY 2001

(October 1, 2000, through September 30, 2001) on the basis of petitions filed for trade

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

manufacturing industries. The FY 2001 figure represents an increase from the 1,382

TAA petitions instituted in FY 2000. The results of the TAA investigations completed in

FY 2001, including those in progress from the previous fiscal year, are shown in

table 5-1.

The number of completed TAA cases, including partial certifications and denied,

terminated, or withdrawn petitions, increased from 1,473 cases in FY 2000 to 1,736

cases in FY 2001. As shown in table 5-1, there were 200,243 workers certified in FY

2001, an increase from the number certified in FY 2000. 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.

Table 5-2 presents data on benefits and services provided under the TAA program.

Expenditures for FY 2001 decreased to $236.2 million from $255.0 million in FY 2000.

In addition, there was a decrease in the number of workers receiving such benefits,

from 32,808 new recipients in FY 2000 to 29,561 new recipients in FY 2001.

NAFTA Transitional Assistance to Workers

The NAFTA Implementation Act27 established the Transitional Adjustment Assistance

program (NAFTA-TAA). That program, which began operation January 1, 1994,

provides training, job search, and relocation assistance to workers in companies

affected by imports from Canada or Mexico or by shifts of U.S. production to those

countries.28 Data for FY 2001 from the U.S. Department of Labor indicate that 1,307

petitions were filed for assistance under the NAFTA-TAA program, compared with

786 such filings in FY 2000. Petition activity under the program in FY 2000 and FY2001

is summarized in table 5-3. As shown, there were 558 completed certifications in

FY 2001, covering 78,974 workers.

FY 2001 figures show 2,550 new recipients of NAFTA-TAA assistance, an increase

from the 2,158 workers that entered the program in FY 2000 (table 5-4). The

Department of Labor provided direct benefits to workers of $27.0 million in FY 2001,

an increase from $23.8 million in FY 2000.

27 NAFTA Implementation Act, title V, NAFTA Transitional Adjustment Assistance and Other

Provisions, Public Law No. 103-182, 107 stat. 2057, section 501-507 (Dec. 8, 1993).

28 Petitioners may apply for and, if eligible, be certified under both the TAA and NAFTA-TAA

programs. However, such dual-certified workers are only permitted to receive benefits from either the

TAA program or the NAFTA-TAA program and must indicate their preferred program.
5-6

Table 5-1

Results of petitions filed under the trade adjustment assistance program,

FY 2000 and FY 2001

Number of investigations

or petitions Number of workers

Item FY 2000 FY 2001 FY 2000 FY 2001

Completed certifications .......... 842 1,007 97,637 133,638

Partial certifications . . . . . . . . . . . . . . 1 2 200 1,420

Petitions denied . . . . . . . . . . . . . . . . . 536 618 53,510 60,170

Petitions terminated or withdrawn . . . 94 109 2,364 5,015

Total . . . . . . . . . . . . . . . . . . . . . . . 1,473 1,736 153,711 200,243

Source: Preliminary (as of March 2002) data maintained by the U.S. Department of Labor,

Employment and Training Administration, Division of Trade Adjustment Assistance.

Table 5-2

Benefits and services provided under the trade adjustment assistance

program, FY 2000 and FY 2001

Estimated number of participants

Item FY 2000 FY 2001

Trade readjustment allowance benefits

Number of new recipients . . . . . . . . . . . . . . . . . . . . 32,808 29,561

Total expenditures (million dollars) ......... 255.0 236.2

Training, job search, and relocation services

Number entering training . . . . . . . . . . . . . . . . . . . . 22,657 26,775

Number receiving a job search allowance . . . . . . . 351 277

Number receiving a relocation allowance . . . . . . . 641 399

Total allocations to States (million dollars) . . . 92.7 (

1

)

1 Not Available.

Source: Preliminary (March 2002) data maintained by the U.S. Department of Labor, Employment

and Training Administration, Division of Trade Adjustment Assistance.

Table 5-3

Results of petitions filed under the NAFTA transitional adjustment

assistance program, FY 2000 and FY 2001

Estimated number of

investigations or petitions Estimated number of workers

Item FY 2000 FY 2001 FY 2000 FY 2001

Petitions filed . . . . . . . . . . . . . . . . . . . 786 1,307 78,160 150,151

Worker groups certified . . . . . . . . . . 403 558 47,275 78,974

Petitions denied . . . . . . . . . . . . . . . . . 338 441 31,932 46,961

Petitions terminated . . . . . . . . . . . . . . 50 55 (1) (1)

1 Not available.

Source: Preliminary (as of March 2002) data maintained by the U.S. Department of Labor,

Employment and Training Administration, Division of Trade Adjustment Assistance.
5-7

Table 5-4

Benefits and services provided under the NAFTA transitional adjustment

assistance program, FY 2000 and FY 2001

Estimated number of participants

Item FY 2000 FY 2001

Trade readjustment allowance benefits

Number of new recipients . . . . . . . . . . . . . . . . . . . . 2,158 2,550

Total expenditures (million dollars) . . . . . . . . . 23.8 27.0

Training, job search, and relocation services

Number entering training . . . . . . . . . . . . . . . . . . . . 2,654 4,736

Number receiving a job search allowance . . . . . . . 22 25

Number receiving a relocation allowance . . . . . . . 121 41

Total allocations to States (million dollars) . . . 34.7 (

1

)

1 Not Available.

Source: Preliminary (March 2002) data maintained by the U.S. Department of Labor, Employment

and Training Administration, Division of Trade Adjustment Assistance.

Assistance to Firms and Industries29

The U.S. Department of Commerce’s Economic Development Administration (EDA)

certified 179 firms as eligible to apply for trade adjustment assistance during FY 2001.

This figure represents a decrease from the 201 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 importantly 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 2001, EDA approved adjustment strategies from 118 firms.

The EDA administers its technical assistance programs through a nationwide network

of 12 Trade Adjustment Assistance Centers (TAACs). The TAACs are nonprofit,

nongovernment organizations established to help firms qualify for, and receive

assistance in, adjusting to import competition. Technical services are provided to

certified firms through TAAC staffs and independent consultants under contract with

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

new brochures and web sites), 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 2001 totaled

$10.5 million, the same as in the previous fiscal year.

In addition to trade adjustment assistance for firms, the EDA also provided $183,000

in FY 2001 in defense conversion funding to the TAACs. These expenditures assist

trade-injured firms in areas that have also experienced economic dislocations from

defense expenditure cutbacks.

29 Information obtained from the Planning and Development Assistance Division, Economic

Development Administration, U.S. Department of Commerce.
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Laws Against Unfair Trade Practices

Several actions were taken in 2001 pursuant to U.S. laws against unfair trade

practices. The Commission completed 54 antidumping investigations, 7 countervailing

duty investigations, and 13 investigations under section 337 of the Tariff Act of 1930

involving allegations of patent, trademark, or copyright infringement or other unfair

methods of competition. In addition, the USTR was involved in a number of actions

directed against unfair trade practices.

Section 301 Investigations

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

addressing foreign unfair practices affecting U.S. exports of goods or services.30

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 USTR to investigate a foreign government policy or

practice, or the 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 the 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 the USTR to

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

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

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

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

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

In 2001, the active cases under the section 301 law concerned the EU’s banana import

regime, the practices of the Canadian Wheat Board, and intellectual property

protection in the Ukraine. In the EU banana case, the United States and five

banana-producing and -exporting countries in Latin America had challenged the EU’s

import regime for bananas in the WTO (see chapter 4). The WTO panel and the

Appellate Body found that the EU regime was inconsistent with international trade rules

and authorized the United States to suspend the application of tariff concessions

granted to the EU and its member states. In 1999, in accordance with the WTO ruling

and authorization, the United States imposed additional 100 percent ad valorem

duties on certain imports from the European Union.31 Thereafter, the United States and

30 See sections 301-309 of the Trade Act of 1974, as amended (19 U.S.C. 2411-2419).

31 See 64 Federal Register 19209, Apr. 19, 1999.
5-9

the European Union engaged in consultations in an attempt to resolve the dispute. In

2001, they reached an agreement to reform the EU banana-import regime to comply

with the WTO ruling and international trade rules.32 The agreement provided for an

EU import licensing system for bananas based on historic reference periods that would

begin in July 2001, and a conversion to a tariff-only system by January 1, 2006. In

accordance with the settlement, the United States lifted the retaliatory duties effective

on July 1, 2001.33 USTR will monitor the EU’s implementation of the agreement.

The 301 investigation concerning the Canadian Wheat Board (CWB) was initiated by

USTR in October 2000 to examine certain acts, policies, or practices of the

Government of Canada and the CWB that were alleged to be unreasonable and to

burden or restrict U.S. commerce.34 Specifically, the North Dakota Wheat

Commission alleged that certain actions of the CWB, a state trading enterprise with

sole control over the purchase and export of western Canadian wheat for human

consumption, are unreasonable and have harmed U.S. wheat farmers in the U.S.

market and in certain third-country markets. To assist it in its investigation, the USTR

asked the USITC to conduct an investigation of the conditions of competition between

the U.S. and Canadian wheat industries in the United States and third markets. A

public version of the USITC report on wheat was issued in December 2001.35 The

section 301 investigation is ongoing.36

The USTR initiated one new section 301 investigation 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).37 Specifically, Ukraine was found to have 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 it failed to fulfill commitments 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

Generalized System of Preferences due to inadequate and ineffective protection of

IPR.38 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 301.39 In December 2001, the USTR

announced that the United States would impose prohibitive duties on certain imports

from Ukraine.40

Some other active 301 investigations are the subject of ongoing WTO dispute

settlement proceedings.41 Table 5-5 contains a listing of active 301 cases.

32 See USTR, Press Release 01-23, Apr. 11, 2001. 33 See USTR, Press Release 01-50, July 1, 2001, and 66 Federal Register 35689, July 6, 2001.

34 See chapter 4 for additional information. See also USTR, Press Release 00-74, Oct. 23, 2000,

and 65 Federal Register 69362, Nov. 16, 2000.

35 See USITC, Wheat Trading Practices: Competitive Conditions Between U.S. and Canadian

Wheat, USITC Publication 3465, December 2001.

36 See USTR, Press Release 01-82, Oct. 16, 2001; and 66 Federal Register 66005, Dec. 21, 2001

37.See USTR, Press Release 01-15, Mar. 13, 2001, and 66 Federal Register 18346, Apr. 6, 2001.

38 See 66 Federal Register 16515, Mar. 26, 2001, USTR, Press Release 01-61, Aug. 7, 2001, and 66

Federal Register 42246, Aug. 10, 2001.

39 See USTR, Press Release 01-61, Aug. 7, 2001, and 66 Federal Register 42246, Aug. 10, 2001.

40 See USTR, Press Release 01-115, Dec. 20, 2001, 67 Federal Register 120, Jan. 2, 2002, and USTR,

Press Release 2002-10, Jan. 23, 2002..

41 See USTR, 2002 Trade Policy Agenda and 2001 Annual Report, pp. 209.
5-10

Table 5-5

Active 301 cases in 2001

Docket No. Summary and actions occuring during course of investigation

Docket No. 301-100a

(see also 301-94) European Union and the Banana Import Regime

In September 1994, Chiquita Brands International Inc. and the Hawaii

Banana Industry Association filed a section 301 petition alleging that

various acts, policies and practices of the European Union with respect to

the importation, sale and distribution of bananas were discriminatory.

USTR initiated a 301 investigation in October 1994. In September 1995,

USTR terminated the initial 301 investigation and initiated a second, expanded 301 investigation of the European Union’s banana import regime. Following a series of bilateral and multilateral consultations during

the ensuing years, USTR eventually resorted to the WTO dispute settlement process. In 1997, the WTO found that the EU’s banana import regime was inconsistent with its obligations under the WTO. Subsequent

bilateral and multilateral consultations regarding the implementation of

the recommendations of the WTO panel report were ongoing in 1998.

By 1999, when the EU had not implemented the WTO recommendations

and conformed its banana import regime with its obligations under the

WTO, the United States requested and received authorization from the

WTO to retaliate against imports from the European Union. In 1999, the

United States imposed additional 100 percent ad valorem duties on certain imports from the European Union. Thereafter, the United States and

the EU engaged in consultations in an attempt to resolve the dispute. In

2001, they reached an agreement to reform the EU banana-import regime to comply with the WTO ruling and international trade rules by

adopting a system of licensing based on historic reference periods and

by converting to a tariff-only system by January 1, 2006. In accordance

with the settlement, the United States lifted the retaliatory duties effective

on July 1, 2001, and the USTR will monitor the EU’s implementation of the

understanding.

Docket No. 301-118 Mexico and Practices Affecting High Fructose Corn Syrup

On April 2, 1998, the Corn Refiners Association, Inc. filed a section 301

petition alleging that the Government of Mexico denies fair and equitable

market opportunities for U.S. exporters of high fructose corn syrup (HFCS) by facilitating an agreement between the Mexican sugar industry

and Mexican soft drink bottlers to limit the use of HFCS. A section 301

investigation was initiated in May 1998, and in May 1999, USTR announced that it would continue consultations with the Government of Mexico with the aim of securing fair and equitable market access for U.S.

HFCS producers.1 In a related development before the WTO, USTR successfully challenged Mexico’s imposition of antidumping duties on imports

of U.S. HFCS.2 In October 2001, the WTO Appellate Body affirmed the

panel’s decision, following a challenge by Mexico.3

Docket No. 301-120 Trading Practices of the Canadian Wheat Board

On September 8, 2000, the North Dakota Wheat Commission filed a

section 301 petition alleging that certain wheat trading practices of the

Government of Canada and the Canadian Wheat Board are unreasonable and that such practices burden or restrict U.S. commerce. On October 23, 2000, the USTR initiated a 301 investigation. As part of the investigation, the USTR asked the USITC to conduct an investigation of the

conditions of competition between the U.S. and Canadian wheat industries in the United States and third markets. The USITC report was issued

in December 2001, and the investigation is ongoing.

1 See USTR, Press Release 99-44, May 14, 1999, and 64 Federal Register 28860, May 27,

1999.

2 See USTR, Press Release 00-05, Jan. 27, 2000, and USTR, Press Release 00-14, Feb. 28,

2000. The full text of the report of the WTO dispute settlement panel is available on the WTO’s

website at www.wto.org.

3 See USTR, Press Release 01-86, Oct. 22, 2001.

Source: Compiled by USITC staff.
5-11

Super 301

The “super 301” law directs the USTR to review trade expansion priorities each year

and to identify so-called “priority foreign country practices” that, if eliminated, are

likely to have the most potential to increase U.S. exports.42 The identification of a

“priority foreign country practice” triggers the initiation of a section 301 investigation

with specified procedures and timetables. The “super 301” law was originally enacted

in the Omnibus Trade and Competitiveness Act of 1988.43 It expired in 1990, but was

modified and renewed by several subsequent Executive Orders and by the Uruguay

Round Agreements Act.44 In 1999, President Clinton issued an Executive Order that

extended “super 301” authority for three years.45

The third and final “super 301” report under the Executive Order was issued in 2001.

The USTR did not identify any “priority foreign country practices” in the report; but it

did identify the following trade expansion priorities for 2001: (1) to reestablish a

bipartisan consensus on free trade; and (2) to move on multiple fronts to expand

trade.46

Special 301

The “special 301” law provides that, each year, the USTR shall identify countries that

deny adequate and effective protection of intellectual property rights (IPR) or that deny

fair and equitable market access for persons who rely on intellectual property

protection.47 A country may be found to be denying adequate and effective IPR

protection even if it is in full compliance with its obligations under the WTO TRIPs

Agreement. In addition, the “special 301” law directs the USTR to identify so-called

“priority foreign countries.” Such countries have the weakest IPR protection, which

results in the greatest adverse impact (actual or potential) on the relevant U.S.

products. The identification of a “priority foreign country” triggers the initiation of a

section 301 investigation with specified procedures and timetables.

In the annual “special 301” review process, the USTR has adopted a policy of naming

countries to the so-called “watch list” or to 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.”48 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

42 See section 310 of the Trade Act of 1974, as amended (19 U.S.C. 2420).

43 See section 1302 of the Omnibus Trade and Competitiveness Act of 1988 (Pub. L. 100-418; 102

Stat. 1176).

44 See Executive Order 12901 of March 3, 1994, 59 Federal Register 10727, as amended by

Executive Order 12973 of September 27, 1995, 60 Federal Register 51665, and see section 314(f) of the

Uruguay Round Agreements Act (Pub. L. 103-465).

45 See Executive Order 13116 of March 31, 1999, 64 Federal Register 16333, Apr. 5, 1999.

46 See USTR, Press Release 01-25, Apr. 30, 2001, USTR, Identification of Trade Expansion Priorities

Pursuant to Executive Order 13116, dated April 30, 2001, and 66 Federal Register 23064, May 7, 2001.

47 See section 182 of the Trade Act of 1974, as added by section 1303 of the Omnibus Trade and

Competitiveness Act of 1988 (Pub. L. 100-418; 102 Stat. 1179), as amended (19 U.S.C. 2242).

48 See USTR, 2002 Trade Policy Agenda, Mar. 2002 and USTR, 2001 Annual Report, Mar. 2001,

p. 210.
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“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 2001 “special 301” review, the USTR devoted special attention to countries’

efforts to reduce piracy of optical media, such as music CDs, video CDs, CD-ROMs,

and DVDs, and to prevent the unauthorized governmental use of computer

software.49 In addition, USTR focused on compliance with WTO TRIPs obligations by

developing countries and new WTO members. In the 2001 “special 301” review, the

USTR identified 51 countries that deny adequate and effective IPR protection.50 The

USTR noted that Ukraine had been designated as a “priority foreign country” in March

2001. Sixteen countries were placed on the “priority watch list,” and thirty-two

countries were placed on the “watch list.” The USTR noted that China and Paraguay

were the subject of ongoing monitoring to ensure that each country complies with

previous commitments made under a bilateral IPR agreement. In addition, the USTR

announced that so-called out-of-cycle reviews would be conducted of the IPR regimes

in Costa Rica, Georgia, Kyrgyz Republic, Lithuania, and Malaysia. Lastly, the USTR

noted in the 2001 “special 301” review that, in promoting intellectual property

protection, the United States is committed to working with countries that develop

serious programs to prevent and treat HIV/AIDS within the framework of the TRIPs

Agreement.51

Antidumping Investigations

The U.S. antidumping law is contained in Title VII of the Tariff Act of 1930.52 The

antidumping law provides relief in the form of special additional duties that are

intended to offset margins of dumping. Antidumping duties are imposed when (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.53 The antidumping

49 See 66 Federal Register 3640, Jan. 16, 2001. See also USTR 2001 Special 301 Report, found at

Internet address http://www.ustr.gov/enforcement/special.pdf, retrieved May 1, 2002.

50 See USTR, Press Release 01-25, Apr. 30,2001, and 66 Federal Register 23311, May 8, 2001. See

also USTR 2001 Special 301 Report, found at Internet address http://www.ustr.gov/enforcement/

special.pdf, retrieved May 1, 2002.

51 See USTR, 2001 Special 301 Report, pp. 4-5. For a related statement of principles, see USTR

Background Paper, TRIPs and Health Emergencies, Press Release 01-97, Nov. 10, 2001.

52 19 U.S.C. 1673 et seq.

53 19 U.S.C. 1677b; 19 CFR part 353, subpart D.
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duty is designed to equal the difference between the U.S. price and the foreign-market

value. The duty specified in an antidumping order reflects the dumping margin found

by Commerce during its period of investigation. This rate of duty will be applied to

subsequent imports if Commerce does not receive a request for annual reviews. If a

request is received, Commerce will calculate the antidumping duties for that year for

each entry.

Commerce and the Commission each conduct preliminary and final antidumping

investigations in making their separate determinations.54 The Commission instituted

69 new antidumping investigations during 2001 and completed 54 investigations.55

Antidumping duties were imposed as a result of affirmative determinations in 31 of

those completed investigations, on products from 21 different countries. The

antidumping duty orders put into effect in 2001 are shown in the following tabulation

(in alphabetical order by country):

Country Product

Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Honey

Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

Belarus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steel concrete reinforcing bars

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foundry coke

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Honey

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pure magnesium

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steel concrete reinforcing bars

India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steel concrete reinforcing bars

Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless steel butt-weld pipe fittings

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless steel angle

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Welded large diameter line pipe

Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless steel angle

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steel concrete reinforcing bars

Latvia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steel concrete reinforcing bars

Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless steel butt-weld pipe fittings

Moldova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steel concrete reinforcing bars

Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless steel butt-weld pipe fittings

Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steel concrete reinforcing bars

Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless steel angle

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ammonium nitrate

Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled carbon steel flat products

Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steel concrete reinforcing bars

54 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. 55 One data reported here and in the following two sections (“Countervailing Duty Investigations

and Reviews of Outstanding Antidumping and Countervailing Duty Orders/Suspension Agreements”)
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Details on all antidumping investigations active at the Commission during 2001 are

presented in table A-25 and a list of all antidumping duty orders, including suspension

agreements,56 in effect as of the end of the year is presented in table A-26.

Antidumping measures on certain hot-rolled steel

products from Japan 57

In November 1999, Japan requested consultations with the United States regarding

determinations made by the U.S. Department of Commerce and the U.S. International

Trade Commission concerning the antidumping investigation of certain hot-rolled steel

products from Japan and investigation reports issued between November 1998 and

June 1999.

According to the most recent WTO dispute-settlement update, Japan viewed these

determinations to be based on deficient procedures under the U.S. Tariff Act of 1930

and related regulations, and therefore erroneous. Japan also claimed certain

violations of the GATT 1994 (Articles VI and X) and the WTO Antidumping Agreement

(Articles 2, 3, and 6, including Annex II).

In February 2000, Japan requested the establishment of a panel, which the WTO

Dispute Settlement Body (DSB) established on March 20, 2000.58 Brazil, Canada,

Chile, the EC, and Korea reserved their third-party rights in regard to the panel. The

panel circulated its report on February 28, 2001.

On April 25, 2001, the United States notified its decision to appeal to the WTO

Appellate Body to examine certain issues of law and legal interpretations developed

by the panel in its report. Japan filed a cross-appeal. On July 24, 2001, the Appellate

Body circulated its report. The Appellate Body upheld the panel’s finding in part and

reversed it in part. On August 23, 2001, the DSB adopted the Appellate Body report

and the panel report, as modified by the Appellate Body report.

On November 20, 2001, Japan requested that the DSB establish a reasonable period

of time for implementation of the reports’ recommendations through binding

arbitration under DSU Article 21.3(c). The United States and Japan agreed to extend

the time period under this provision, pending the appointment of an arbitrator.

On February 19, 2002, the arbitrator circulated his award, concluding that the

reasonable time period for U.S. implementation of the DSB recommendations was 15

55—Continued

reflect the total number of investigations. In other Commission reports these data are grouped by product

because the same investigative team and all of the parties participate in a single grouped proceeding,

and the Commission generally produces one report and issues one opinion containing its separate

determinations for each investigation. 56 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. A suspended investigation is reinstituted

should LTFV sales recur. See 19 U.S.C. 1673c.

57 WTO, “Update of WTO Dispute Settlement Cases,” WT/DS/OV/6, May 3, 2002, p. 97.

58 WT/DS184 - United States - Anti-Dumping Measures on Certain Hot-Rolled Steel Products from

Japan.
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months from August 23, 2001. Consequently, the implementation period is to expire on

November 23, 2002.

Countervailing Duty Investigations

The U.S. countervailing duty law is also set forth in title VII of the Tariff Act of 1930. It

provides for the levying of special additional duties to offset foreign subsidies on

products imported into the United States.59 In general, procedures for such

investigations are similar to those under the antidumping law. Petitions are filed with

Commerce (the administering authority) and with the Commission. Before a

countervailing duty order can be issued, Commerce must find a countervailable

subsidy and the Commission must make an affirmative determination of material

injury, threat of material injury, or material retardation by reason of the subsidized

imports.

The Commission instituted 13 new countervailing duty investigations during 2001 and

completed 7 investigations. Countervailing duties were imposed as a result of

affirmative determinations in six of those completed investigations on products from

five different countries. The countervailing duty orders put into effect in 2001 are

shown in the following tabulation (in alphabetical order by country):

Country Product

Argentina Honey

Argentina Hot-rolled carbon steel flat products

India Hot-rolled carbon steel flat products

Indonesia Hot-rolled carbon steel flat products

South Africa Hot-rolled carbon steel flat products

Thailand Hot-rolled carbon steel flat products

Details on all countervailing duty investigations active at the Commission during 2001

are presented in table A-27 and a list of all countervailing duty orders, including

suspension agreements,60 in effect as of the end of the year is presented in table A-28.

Reviews of Outstanding Antidumping and Countervailing

Duty Orders/Suspension Agreements

Section 751 of the Tariff Act of 1930 requires Commerce, if requested, to conduct

annual reviews of outstanding antidumping and countervailing duty orders to

59 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).

60 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 reinstituted if

subsidization recurs. See 19 U.S.C. 1671c.
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determine the amount of any net subsidy or dumping margin and to determine

compliance with suspension agreements. Section 751 also authorizes Commerce and

the Commission, as appropriate, to review certain outstanding determinations and

agreements after receiving information or a petition that shows changed

circumstances. In these circumstances, the party seeking revocation or modification of

an antidumping or countervailing duty order or suspension agreement has the burden

of persuading Commerce and the Commission that circumstances have changed

sufficiently to warrant review and revocation. Based on either of these reviews,

Commerce may revoke a countervailing duty or antidumping order in whole or in part

or terminate or resume a suspended investigation. No changed circumstances

investigations were active at the Commission during 2001.

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 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.61 During 2001, Commerce and the Commission instituted 13 sunset reviews of

existing antidumping and countervailing duty orders or suspension agreements62 and

completed 32 reviews, resulting in 4 orders or suspension agreements being revoked

and 28 orders or suspension agreements being continued for 5 additional years.

Table A-29 shows completed reviews of antidumping orders or suspension

agreements in 2001 and table A-30 shows completed reviews of countervailing duty

orders or suspension agreements in 2001.63

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.64

61 19 U.S.C. 1675c.

62 Four of these reviews were subsequently terminated and the outstanding order/suspension

agreement revoked because a domestic industry did not request that it be continued. The revoked

antidumping orders were on manganese metal from China and polyvinyl alcohol from China, Japan,

and Taiwan.

63 For detailed information on reviews instituted, as well as Commission action in all reviews, see the

Commission’s Internet web site section entitled “Five-year Sunset Reviews” at http://www.usitc.gov/

webinv.htm.

64 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, misappropriation of trade

dress, 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.
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If the Commission determines that a violation exists, it can issue an order excluding the

subject imports from entry into the United States, or order the violating parties to cease

and desist from engaging in the unlawful practices.65 The President may disapprove a

Commission order within 60 days of its issuance for “policy reasons.”

During 2001, there were 38 active section 337 investigations and ancillary

proceedings, 27 of which were instituted in 2001. All of the new section 337

investigations instituted by the Commission in 2001 contained allegations of

infringement of U.S. patents by imported merchandise. One of those investigations

also included allegations of trademark infringement and other unfair acts. One

investigation was terminated on the basis of a consent order and five investigations

were terminated on the basis of settlement agreements. The Commission completed a

total of 13 investigations and ancillary proceedings under section 337 in 2001,

including one remand 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 interactive program guides for digital

satellite and cable television, high-speed wireless local-area network systems,

modems, computer control systems, plasma display panels, various types of memory

chips and related integrated-circuit devices, and processes for semiconductor

fabrication. In addition, several section 337 investigations involved other sophisticated

technologies relating to items such as magnetic resonance injection systems, synthetic

fibers and fabric used in vehicle tires and seat belts, and abrasive products used in the

manufacture of silicon chips. Other section 337 investigations active during 2001

concerned cartridges for ink jet printers, disposable cameras, garage door openers,

personal watercraft, and interlocking floor panels.

Two exclusion orders were issued during 2001. Several investigations were terminated

by the Commission without determining whether section 337 had been violated.

Generally, these terminations were based on a settlement agreement or consent

order. At the close of 2001, there were 25 Section 337 investigations pending at the

Commission. Commission activities involving Section 337 actions in 2001 are

presented in table A-31.

As of December 31, 2001, a total of 48 outstanding exclusion orders based on

violations of Section 337 were in effect, of which 25 involved unexpired patents. Table

A-32 lists the investigations in which these exclusion orders were issued.

65 Section 337 proceedings at the Commission are conducted before an administrative law judge in

accordance with the Administrative Procedure Act, 5 U.S.C. 551 et seq. The administrative law judge

conducts an evidentiary hearing and makes an initial determination, which is transmitted to the

Commission. The Commission may adopt the determination by deciding not to review it, or it may choose

to review it. If the Commission finds a violation, it must determine the appropriate remedy, the amount of

any bond to be collected while its determination is under review by the President, and whether public

interest considerations preclude the issuance of a remedy.
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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) amended Title V to authorize the President to provide duty-free

treatment for certain articles when imported from countries designated as beneficiary

sub-Saharan African countries through September 30, 2008. By offering unilateral

tariff preferences, the GSP program reflects the U.S. commitment to three broad goals:

(1) to promote economic development in developing and transitioning economies

through increased trade, rather than foreign aid; (2) to reinforce U.S. trade policy

objectives by encouraging beneficiaries to open their markets, to comply more fully

with international trading rules, and to assume greater responsibility for the

international trading system; and (3) to help maintain U.S. international

competitiveness by lowering costs for U.S. business and lowering prices for American

consumers. The GSP program expired on September 30, 2001 (except for those

countries designated as beneficiary sub-Saharan African countries), and was not

renewed in 2001.

Countries are designated as “beneficiary developing countries” under the program by

the President. The President cannot designate certain developed countries named in

the statute and also may not designate countries that, inter alia, afford preferential

treatment to the products of a developed country, other than the United States, that

has, or is likely to have, a significant adverse effect on U. S. commerce or countries that

do not afford adequate protection to intellectual property rights or afford

internationally recognized worker rights to their workers.66 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” and thus not eligible for duty-free treatment under the GSP

program.67 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.

66 19 U.S.C. 2462(b).

67 19 U.S. C. 2463.
5-19

Each year (unless otherwise specified in a Federal Register notice), the Office of the

United States Trade Representative (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 F.R. 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,

that the 2001 GSP Annual Review would be conducted on a schedule to be announced

if and when the program was reauthorized.68

In June 2001, the President proclaimed certain modifications to the GSP implementing

decisions made in regard to various reviews. 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 (CNLs) for calendar year 2000; (3) the redesignation of certain countries GSP

eligibility for certain articles that had previously exceeded the applicable GSP

competitive need limits, but fell below the CNLs in 2000; (4) the granting of waivers of

the competitive need limits for several Harmonized Tariff Schedule of the United States

(HTS) subheadings for India; (5) the delegation of authority to USTR to determine the

effective date of the redesignation of India’s GSP eligibility for certain articles; and (6)

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

Subsequently, in September 2001, the President proclaimed the redesignation of

Indonesia’s GSP eligibility for certain articles.

USTR took several additional actions under the GSP in 2001. In January 2001, USTR

announced the acceptance of petitions to review the GSP status of Brazil, Pakistan, and

Russia and the termination of the worker rights review of Swaziland and the

intellectual property rights review of Moldova. Also in January, USTR announced a

review as to whether to modify GSP duty-free treatment to certain imports from India.

The review was undertaken to determine whether India offered “equitable and

reasonable access for U.S. goods and service.” In March 2001, USTR requested public

comment on whether to suspend, in whole or part, the duty-free treatment accorded to

imports from Ukraine under the GSP program on the grounds that Ukraine had not

taken sufficient steps to protect intellectual property rights. In August 2001, USTR issued

a Federal Register notice that, in part, suspended Ukraine’s GSP eligibility. Also in

August, USTR announced the effective date of the redesignation of India’s GSP

eligibility for certain articles.

Approximately $15.5 billion in duty-free imports entered the United States under the

GSP program in 200169, accounting for more than 10 percent of total U.S. imports

68 Federal Register notice (66 F.R. 19278).

69 As discussed above, the U.S. GSP program expired on September 30, 2001. Because of the lapse

of GSP benefits, articles otherwise eligible for GSP duty-free entry were subject to column 1 general duties

(NTR) during the period of lapse unless another valid preferential tariff benefit, such as that provided by
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from GSP beneficiaries and 1.3 percent of total U.S. imports (table 5-6). Angola was

the leading GSP beneficiary in 2001, followed by Thailand, Brazil, India, and

Indonesia (table 5-7). Appendix table A-33 shows the top 20 GSP products or product

categories in 2001, and table A-34 shows the overall sectoral distribution of GSP

benefits.

Caribbean Basin Economic Recovery Act

In 2001, eligible imports from 24 countries and territories in Central America and the

Caribbean entered the United States free of duty or at reduced duties under the

Caribbean Basin Economic Recovery Act (CBERA).70 CBERA has been operative since

January 1, 1984. The Act, as amended, has no statutory expiration date.71 CBERA is

the trade-related component of the Caribbean Basin Initiative (CBI).72 President

Reagan launched CBI in 1982 to promote export-led economic growth and economic

diversification in the countries of the Caribbean Basin.73

A wide range of Caribbean products is eligible for duty-free entry under CBERA.

Excluded by statute from duty-free entry, however, are certain tuna, petroleum and

petroleum derivatives, certain footwear, some watches and watch parts, and most

textiles and apparel. Certain agricultural products, including sugar, dairy products,

cotton, peanuts, and beef, may receive duty-free entry subject to U.S. quotas and/or

health requirements. Other restrictions apply to ethyl alcohol produced from

non-Caribbean feedstock. Handbags, luggage, flat goods (such as wallets, change

purses, and eyeglass cases), work gloves, and leather wearing apparel are not

eligible for CBERA duty-free entry. However, CBERA duty rates on these articles were

reduced by a total of 20 percent–but by not more than 2.5 percentage points–in five

equal installments, beginning January 1, 1992.

The United States-Caribbean Basin Trade Partnership Act (CBTPA), enacted May 18,

2000, is the most recent enhancement of CBERA.74 CBTPA became effective on

October 1, 2000, and is scheduled to expire on September 30, 2008.

69—Continued

the Caribbean Basin Economic Recovery Act, was claimed and accorded. Duties paid on articles

otherwise eligible for GSP duty-free entry during the period of GSP lapse may be eligible to be refunded if

the program is reauthorized retroactively. Procedures for such refunds were announced in a U.S.

Customs Service, “Procedures if the Generalized System of Preferences Expires”, 66 F.R. 50248.

70 The 24 countries designated for CBERA benefits are listed in table A-36.

71 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.

72 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.

73 President, “Address Before the Permanent Council of the Organization of American States,”

Weekly Compilation of Presidential Documents, Mar. 1, 1982, # 217-223.

74 Trade and Development Act of 2000 (Public Law 106-200, title II).
5-21

Table 5-6

U.S. Imports for consumption from GSP beneficiaries and the world,

2001

(Million dollars)

Item

All GSP

beneficiaries World

Total imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,504 1,128,728

Total GSP-eligible products2 ............................... 24,511 508,188

Total GSP (non LDBDC eligible products) . . . . . . . . . . . . . . . . . . . . . 21,416 250,841

GSP - LDBDC eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,095 257,346

Total duty free under GSP3 ................................ 15,528 15,723

Duty free under non LDBDC GSP . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,702 12,897

Duty free under GSP - LDBDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,825 2,825

Total of GSP eligible products not benefitting from GSP duty-free

treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,983 492,465

GSP program exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,193 4,193

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,790 488,272

Non eligible products imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,994 620,540

Customs-value basis; excludes imports into the Virgin Islands.

Includes imports from all beneficiary countries for the articles that are designated as eligible

articles under GSP. Non-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 symbols “A” or “A*” in

parenthesis (the symbol “A” indicates that all beneficiary countries are eligible for duty-free

treatment with respect to all articles provided for in the designated provisions and the symbol

“A*” indicates that 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). 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 parenthesis (the symbol “A+” indicates that all LDBDC (and only LDBDC’s) are

eligible for duty-free treatment with respect to all articles provided for in the designated

provisions). For a variety of reasons, all imports from beneficiary countries under HTS provisions

that appear to be eligible for GSP treatment do not always and necessarily receive duty-free

entry under the GSP. Such eligible imports may not receive duty-free treatment under GSP for 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.
5-22

Table 5-7

U.S. imports for consumption and imports under GSP from leading

beneficiaries and total, 2001

Rank Beneficiary

Total

imports GSP-eligible

GSP

duty-free

1 Angola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,604 2,592 2,511

2 Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,379 2,724 1,950

3 Chile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,279 767 483

4 Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,118 486 352

5 Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,965 527 372

6 India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,693 2,102 1,334

7 Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,930 1,997 1,322

8 Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 248 214

9 Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,307 1,093 676

10 Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 951 394 285

11 Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,171 426 378

12 South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,430 558 506

13 Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,669 3,213 2,201

14 Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,038 594 437

15 Venezuela . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,544 653 637

Top 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,431 18,375 13,656

Total, all other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,031,297 6,136 1,871

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,128,728 24,511 15,528

Note.—Calculations based on unrounded data.

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

CBTPA is principally aimed at eliminating the competitive disadvantage that CBERA

countries have faced vis-à-vis Mexico since the implementation of NAFTA in 1994.

Notably, CBTPA authorizes preferential tariff treatment for certain qualifying apparel

articles, the assembly of which is an important Caribbean industry, on a basis

essentially equivalent to the trade preferences provided under NAFTA for similar

goods from Mexico.75 The CBTPA also 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. CBERA beneficiaries are not automatically eligible for

CBTPA preferences; they are subject to the implementation of their commitments to the

WTO, participation in the FTAA process, protection of intellectual property and

internationally recognized workers’ rights, efforts to eliminate the worst forms of child

labor, and cooperation with the United States on counter-narcotic initiatives.

75 For CBTPA provisions related to textiles and apparel, see “Textile and Apparel Related

Legislation” later in this chapter.
5-23

By the end of 2001, 14 of the 24 CBERA beneficiaries had been found to satisfy

customs-related requirements established in the CBTPA, becoming thereby fully

eligible for benefits under that legislation. These countries are: Barbados, Belize, Costa

Rica, the Dominican Republic, El Salvador, Guatemala, Guyana, Haiti, Honduras,

Jamaica, Nicaragua, Panama, Saint Lucia, and Trinidad and Tobago. Barbados,

Saint Lucia, and Trinidad and Tobago became newly eligible for CBTPA benefits

during 2001.76

U.S. imports under CBERA declined in 1999 and 2000 from their peak in 1998, as

products which for years had been leading imports under CBERA, became free of duty

under normal trade relations (NTR) rates (formerly known as most-favored-nations

duty rates),77 and therefore no longer entered under the program. Imports under

CBTPA did not enter the United States until December 2000 and this had a limited effect

on import volumes in 2000.

While total U.S. imports (preferential and nonpreferential imports combined) from

CBERA countries declined during 2001, importsin the preferential portion–those under

CBERA including CBTPA–rose sharply, as shown in table 5-8, reflecting the expansion

of CBERA to include certain types of apparel. Total U.S. imports from CBERA

beneficiary countries amounted to $20.7 billion in 2001. Of this amount, $8.3 billion,

or 40 percent, entered under CBERA (including CBTPA ) preferences. In comparison,

CBERA accounted for only 13 percent of the total in 2000. Notably, during 2001,

CBTPA alone accounted for the rapid growth of imports under CBERA; such imports

almost tripled as a result of the CBTPA.

Andean Trade Preference Act

Eligible imports from Bolivia, Colombia, Ecuador, and Peru entered the United States

free of duty under the Andean Trade Preference Act (ATPA) during most of 2001.78

ATPA has been operative since December 4, 1991 and expired on December 4,

2001.79 ATPA is the trade-related component of the Andean Trade Initiative. To

Table 5-8

U.S. imports for consumption from CBERA countries, 1999-2001

Item 1999 2000 2001

Total imports from CBERA countries (1,000 dollars) . . . . 19,365 22,161 20,679

Total under CBTPA (1,000 dollars) . . . . . . . . . . . . . . . . . (1) 157 5,593

Total under CBERA, excluding CBTPA (1,000 dollars) . . . 2,637 2,636 2,706

Total under CBERA, including CBTPA (1,000 dollars) . . . 2,637 2,793 8,299

Percent of CBERA (incl. CBTPA) of total imports from

CBERA countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 13 40

1 Not applicable.

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

76 66 F.R. 9888 for Trinidad and Tobago, and 66 F.R. 31272 for Barbados and Saint Lucia.

77 These included several goods in the instruments, footwear uppers, and electrical machinery

categories.

78 For a more detailed description of the ATPA, including country and product eligibility, see USITC,

Andean Trade Preference Act: Impact on the U.S., Seventh Report, 1999, publication 3358, Sept. 2000.

79 19 U.S.C. 3202
5-24

combat the production of illegal narcotics in the Andean region, President George

H.W. Bush launched the initiative in 1990 to help beneficiaries promote

export-oriented industries, and hence, create employment options that would be an

alternative to participation in the drug trade.80

ATPA benefits were modeled after CBERA, but some limits are linked to GSP. A wide

range of Andean products are eligible for duty-free entry.81 ATPA excludes from

duty-free entry the same list of articles excluded under CBERA–handbags, luggage,

flat goods (such as wallets, change purses, and eyeglass cases), work gloves, and

leather wearing apparel. However, ATPA duties on these articles, like CBERA duties,

were reduced by a total of 20 percent, but not more than 2.5 percent ad valorem, in

five equal annual installments beginning January 1, 1992.

U.S. imports from the four Andean countries totaled $9.6 billion in 2001 (table 5-9).

Imports under ATPA preferences were valued at almost $1.7 billion, or 18 percent of

the total, a share unchanged from the previous years. The leading items afforded

duty-free entry under ATPA in 2001 were: refined copper cathodes, pigments

dispersed in nonaqueous media, fresh cut roses, chrysanthemums, standard

carnations, anthuriums, and orchids, as well as other cut flowers (table A-38). The

leading imported articles excluded from duty-free entry under ATPA in 2001 were

apparel, petroleum, and to a lesser extent, canned tuna.

Table 5-9

U.S. imports for consumption from ATPA countries, 1999-2001

Item 1999 2000 2001

Total imports (1,000 dollars) . . . . . . . . . . . . . . . . 9,830,217 11,117,225 9,568,661

Total under ATPA (1,000 dollars) . . . . . . . . . . . . 1,750,279 1,981,632 1,674,607

Percent of total . . . . . . . . . . . . . . . . . . . . . . . . . . 18 18 18

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

U.S. imports from the four ATPA countries declined nearly 14 percent between 2000

and 2001, with a slightly greater decrease (15.5 percent) under ATPA-covered

products. Imports from each of the four ATPA beneficiary countries declined in 2001

(table A-37). The decreases under the preference program ranged from 12 percent

for Bolivia to nearly 19 percent for Peru. Declines occurred in each of the leading tariff

items benefitting from the ATPA program–refined copper cathodes dropped by 24

percent, roses by 6 percent, and chrysanthemums and other cut flowers by 24 percent.

The same top five items accounted for nearly three-fifths of the value of 2001 ATPA

imports. This major group of imports declined by 15 percent from 2000 to 2001.

The major development in the ATPA program in 2001 was its expiration on

December 4.82 The termination of the program was anticipated during the year and

80 President, “Remarks Following Discussions With President Rodrigo Borja Cevallos of Ecuador,”

Weekly Compilation of Presidential Documents, July 23, 1990, pp. 1140-43.

81 Section 204(a) of ATPA (19 U.S.C. 3203(a)) establishes rules of origin to determine which articles

are eligible for duty-free treatment under the Act.

82 Memo on the expiration of the Andean Trade Preference Act from the Executive Director of the

Trade Programs Office of Field Operations of the U.S. Customs Service to the Directors of Field

Operations, Dec. 4, 2001, found at Internet address http://www.customs.treas.gov/impoexpo/

andean.htm, Feb. 25, 2002.
5-25

legislation to continue the program was introduced in both houses of Congress.83 A bill

to extend the Andean preference program (H.R. 3009) was approved by the House of

Representatives in November 2001. The House bill, although acted on by the Senate

Committee on Finance, was never officially considered by the full Senate, and the

program expired on December 4, 2001. By year-end, no action had been taken, and

the Andean trade program was no longer operative.84

National Security Import Restrictions

The U.S. Department of Commerce conducted one investigation under section 232

during 2001, with respect to imports of iron ore and semi-finished steel. Commerce

self-initiated the investigation in February 2001 following receipt of a request in

January 2001 from U.S. House of Representatives members James Oberstar and Bart

Stupak. Following consultation with the U.S. Department of Defense, the Secretary of

Commerce found that imports of iron ore and semi-finished steel are not being

imported in such quantities or under such circumstances as to threaten to impair the

national security.85 As a result of the Secetary’s negative finding, no action was taken

by the President. No section 232 actions were in effect as of the end of 2001.

U.S. Textile and Apparel Trade Program

This section summarizes major developments that occurred during 2001 in connection

with the U.S. trade agreements program for textiles and apparel. It reviews the

ongoing phase-out of quotas under the WTO; U.S. quota activity during 2001,

including new developments with China, Taiwan, Pakistan, Cambodia, and Vietnam;

new trade preferences for countries in sub-Saharan Africa and the Caribbean Basin;

proposed trade benefits for Andean countries; and trends in U.S. imports of textiles

and apparel. A key development affecting textiles and apparel–the WTO Ministerial

Conference held in Doha, Qatar, in November 2001, where the developing countries

urged the developed countries to accelerate the pace of quota liberalization–is

discussed in chapter 2 of this report.86

83 The Andean Trade Preference Expansion Act (ATPEA)(S. 525) was introduced in March 2001 to

extend and expand ATPA trade preferences. The section on the U.S. textile and apparel trade program,

elsewhere in this chapter, discusses such an expansion. The Andean Trade Promotion and Drug

Eradication Act, H.R. 3009, was introduced in Oct. 3, 2001.

84 In early 2002, following a request from the governments of the four beneficiary countries,

President Bush authorized a temporary 90-day extension of the duty-free benefits of the ATPA program.

The temporary rule became effective on Feb. 15, 2002 and expires on May 16, 2002. 67 F.R. 7070-02.

85 Department of Commerce (2002) “The Effects of Imports of Iron Ore and Semi-Finished Steel

on the National Security: An Investigation Conducted Under Section 232 of the Trade Expansion Act

of 1962, as amended” October 2001, available at

http://www.bxa.doc.gov/OSIES/232-Reports/IronNSteelDefault.htm#ExecSummary (last visited

June 4, 2002).

86 During the Doha Ministerial Conference, the developing countries voiced concern that the trade

liberalization measures adopted so far by the developed countries involved articles that either were not

subject to quotas or were mostly lower-value-added goods such as yarn, rather than highervalued-added finished goods like apparel.
5-26

The Uruguay Round Agreement on Textiles and Clothing

The Agreement on Textiles and Clothing (ATC) entered into force with the WTO

agreements in 1995 and created special interim rules to govern trade in textiles and

apparel among WTO countries. It calls for the gradual elimination of quotas

established by the United States, the European Union (EU), and Canada under the

Multifiber Arrangement (MFA), an arrangement negotiated under the General

Agreement on Tariffs and Trade (GATT) that has governed world textile and apparel

trade since 1974.

The ATC requires countries to “integrate” textile and apparel articles into the GATT

regime over a 10-year transition period ending on January 1, 2005; that is, the articles

are to be brought under GATT discipline and subject to the same rules as products of

other sectors. As countries integrate textile and apparel articles into the GATT regime,

they are required to eliminate any quotas on such goods and may not establish new

quotas on the integrated articles, except as provided under normal GATT rules.

The ATC required WTO countries to integrate articles representing at least 51 percent

of their respective 1990 textile and apparel import volumes in three stages, as follows:

(1) to integrate at least 16 percent of their trade on January 1, 1995, (2) another 17

percent on January 1, 1998, and (3) an additional 18 percent on January 1, 2002. The

remaining 49 percent of the trade is to be integrated at the end of the transition period

on January 1, 2005. Quotas that were not eliminated in one of the three stages of

integration were increased in size based on growth rates specified in bilateral MFA

agreements; these growth rates, in turn, were increased by 16 percent in 1995, by

another 25 percent in 1998, and by another 27 percent in 2002 (the

“growth-on-growth” provision).87 For small WTO suppliers (countries accounting for

1.2 percent or less of an importing country’s total quotas in 1991), quota growth rates

were advanced by one stage–that is, the growth rates were increased by 25 percent in

1995 and by 27 percent in 1998 and again by 27 percent in 2002. Under the ATC, the

trade-weighted average annual growth rate for WTO countries’ quotas rose from 4.9

percent in 1994 to 5.7 percent in 1995 and 7.3 percent in 2000.88

U.S. Quota Activity in 2001

The United States has quotas on textiles and apparel from 46 countries, which together

accounted for 83 percent of the total value of U.S. imports of such goods in 2001 (table

5-10). U.S. quotas are being phased out for Mexico under NAFTA and the other 38

WTO countries under the ATC. Seven countries covered by quota are not WTO

members and, thus, are ineligible for quota liberalization.89

87 The acceleration of quota growth rates is based on rates specified in the bilateral MFA

agreements in place on Dec. 31, 1994. The base growth rates vary by country and article, but ranged

from less than 1 percent to 6 and 7 percent. Assuming a 6-percent base rate for a major supplier, the

annual quota growth rate would be 6.96 percent during 1995-97, 8.7 percent during 1998-2001, and

11.05 percent during 2002-04.

88 Office of the United States Trade Representative, 2001 Trade Policy Agenda and 2000 Annual

Report, p. 67.
5-27

China and Taiwan

China and Taiwan, two of the world’s largest exporters of textiles and apparel,

became eligible for ATC benefits upon their WTO accessions on December 11, 2001,

and January 1, 2002, respectively. The United States implemented the three stages of

integration for China and Taiwan on January 1, 2002. However, the United States no

longer applied quotas on articles integrated into the GATT regime during the first two

stages of integration–those made in China and exported on or after December 11,

2001. For 2002, the United States increased the size of each quota that was not

eliminated in one of the three stages of integration by growth rates specified in their

respective bilateral textile agreements.90 Effective March 19, 2002, the United States

increased the 2002 quotas for China and Taiwan for the application of accelerated

quota growth (growth-on-growth provision), as required by the ATC. China and

Taiwan each received a quota-growth-rate acceleration of 27 percent; China also

received an additional, prorated increase to account for its 21 days of WTO

membership in 2001.91

In November 1999, the United States signed a market access agreement with China

that became part of China’s WTO accession package and obligated the United States

to eliminate quotas on imports of Chinese textiles and apparel as of January 1, 2005,

the same date as that for other WTO members.92 However, the agreement allows the

United States to apply selective safeguards (quotas) on imports of textiles and apparel

from China for 4 additional years beyond the termination of textile and apparel

quotas for WTO members-that is, from January 1, 2005, to December 31, 2008. The

agreement also states that no safeguards established during the 4-year period will

remain in effect beyond 1 year, without reapplication, unless both countries agree.

89 Imports of textiles and apparel from 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 provides the President

with the basic statutory authority to enter into agreements with foreign governments to limit their exports of

such items to the United States.

90 Committee for the Implementation of Textile Agreements (CITA), “Announcement of Import Limits

for . . . Textile Products Integrated into GATT 1994 in the First, Second, and Third Stage” for China and

Taiwan, published in the Federal Register of Dec. 28, 2001 (66 F.R. 67229 and 66 F.R. 67232,

respectively).

91 ITA, “Amendment of Import Limits for . . . Textile Products” for China and Taiwan, published in the

Federal Register of Mar. 19, 2002 (67 F.R. 12525 and 67 F.R. 12528, respectively) and an official of the

U.S. Department of Commerce, Office of Textiles and Apparel, Mar. 26, 2002.

92 The agreement incorporates the text of an agreement contained in a Memorandum of

Understanding between the United States and China of February 1, 1997, which provided that should

China become a member of the WTO, the United States would grant China the same benefits on the same

schedule accorded other WTO textile-exporting countries under the ATC.
5-28

Table 5-10

Trading partners with which the United States has textile and apparel

quotas, as of January 1, 2002, and U.S. imports of textiles and apparel

from these partners in 2001

(Million dollars)

Partners Imports

WTO members subject to the ATC:

Bahrain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208

Bangladesh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,205

Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232

Bulgaria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,536

Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376

Costa Rica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753

Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Dominican Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,274

Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509

El Salvador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,646

Fiji . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Guatemala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,614

Honduras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,348

Hong Kong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,403

Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,633

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,553

Jamaica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Kuwait . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Macau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,134

Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 814

Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238

Myanmar (Burma) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422

Oman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,924

Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,248

Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Qatar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302

Slovak Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

South Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,931

Sri Lanka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,698

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,476

Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,441

Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,451

United Arab Emirates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323

Uruguay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
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Table 5-10—Continued

Trading partners with which the United States has textile and apparel

quotas, as of January 1, 2002, and U.S. imports of textiles and apparel

from these partners in 2001

(Million dollars)

Partners Imports

WTO members subject to the ATC:

Non-WTO members subject to section 204 of the Agricultural Act of 1956:

Belarus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Cambodia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 953

Former Yugoslav Republic of Macedonia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Laos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Nepal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349

Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

WTO member subject to the North American Free-Trade Agreement:

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,945

Source: U.S. Department of Commerce, International Trade Administration, Office of Textiles and

Apparel.

Pakistan

Pakistan began to experience serious economic problems in the aftermath of the

terrorist attacks on the United States on September 11, 2001. Export demand for

Pakistani textiles and apparel reportedly fell sharply as customers in the United States

and elsewhere cancelled orders because of the heightened risk of doing business in

Pakistan, leading to large layoffs and increasing the risk of social unrest there.93 The

textile and apparel sector is a key source of economic activity in Pakistan, consuming

large quantities of its cotton production and generating 59 percent of its exports by

value in 2000 (based on United Nations data). U.S. imports of textiles and apparel

from Pakistan in 2001 rose by 10 percent over the 2000 level to 2.2 billion square

meter equivalents (SMEs) valued at $1.9 billion, making Pakistan the 4th-largest source

by quantity with 6.7 percent of the total import volume and the 15th-largest source by

value with 2.7 percent of the total import value.

In recognition of the role that Pakistan is playing in the war against terrorism, President

Bush proposed an aid package for Pakistan during the visit of Pakistani President

Musharraf at the White House on February 13, 2002. In part, President Bush

announced that the United States would provide increased market access for about

$142 million in apparel imports from Pakistan.94 In this regard, the United States

granted Pakistan an increase of 15 percent in the base quota levels for 2002 and

special swing (a shift of unused quota from one category to another) of 25 percent for

the years 2002-04 for 14 categories of cotton and man-made-fiber apparel.95 The

93 See, for example, “Textile Group Condemns White House Plan to Lower Duties on Pakistani

Goods,” International Trade Daily (Washington, D.C.: BNA, Inc.), Nov. 5, 2001, p. 3; and “Pakistan:

Textile Exporters to Meet U.S. Ambassador,” Oct. 1, 2001, found at Internet address

http://www.just-style.com, retrieved Oct. 2, 2001.

94 The White House, “Fact Sheet: Official Working Visit of President Musharraf of Pakistan,” Feb.

13, 2002, available on its website at www.whitehouse.gov/news/releases/2002/02.

95 U.S. Department of Commerce, “Apparel Benefits for Pakistan,” facsimile to Commission staff,

Feb. 26, 2002.
5-30

United States also granted Pakistan special swing for the years 2002-04 of 8 percent

for cotton trousers, knit shirts, and knit blouses and 25 percent for cotton and

man-made-fiber underwear and men’s and boys’ woven shirts. All of the special swing

is in addition to the normal swing provided in the bilateral textile agreement; the

special swing will be taken only from textile (nonapparel) categories. U.S. imports of

Pakistani garments eligible for these benefits totaled 177 million SMEs valued at $752

million in 2001.

The United States also agreed to eliminate a transitional safeguard (quota) that it had

been applying to imports of combed cotton yarn from Pakistan since March 1999.96

As the United States and Pakistan were unable to reach a mutually acceptable

agreement in consultations on this matter, the WTO Textiles Monitoring Body (TMB)

which supervises the implementation of the ATC provisions, reviewed the U.S. measure

and found it to be inconsistent with the ATC. When the matter was not resolved in the

TMB, Pakistan challenged this quota under the WTO dispute settlement process and,

on October 8, 2001, the WTO Appellate Body affirmed a dispute settlement panel’s

finding that certain aspects of the U.S. determination to impose the quota were

inconsistent with the ATC.97 The United States removed the quota on combed cotton

yarn from Pakistan effective on November 9, 2001.98

Legislation intended to assist Pakistan was also introduced in the United States Senate

during November 2001. Senators Baucus and Grassley introduced S. 1671 to

authorize duty-free treatment under the Generalized System of Preferences for

certain handmade carpets and leather gloves, for which Pakistan was the

fourth-largest source with shipments in 2001 of $105 million, or 11 percent of total

imports of such articles. Senator Brownback introduced S. 1675, the Pakistan

Emergency Economic Development and Trade Support Act, which would authorize the

President to reduce or suspend any existing duties on Pakistani textiles and apparel in

an effort to strengthen and stabilize Pakistan in return for its assistance to the United

States in waging the war against terrorism.99 No further action was taken on either bill

as of March 1, 2002.

Cambodia and Vietnam

On December 31, 2001, the United States and Cambodia signed a Memorandum of

Understanding (MOU) that extended their bilateral textile agreement for 3 additional

96 Article 6 of the ATC allows countries during the 10-year transition period to establish new quotas

on imports of textile and apparel articles not yet integrated into the GATT regime by applying a

transitional safeguard when imports cause or threaten serious damage to a domestic industry. These

quotas may remain in place for up to 3 years or until the article is integrated into the GATT regime.

97 WTO, “United States - Transitional Safeguard Measure on Combed Cotton Yarn from Pakistan,”

report of the Dispute Settlement Body panel, WT/DS192/R, May 31, 2001, and report of the Appellate

Body, WT/DS192/AB/R, Oct. 8, 2001, available on the WTO website at http://www.wto.org, retrieved

June 1 and Oct. 22, 2001.

98 Committee for the Implementation of Textile Agreements, “Removing a Limit on Imports of

Combed Cotton Yarn from Pakistan,” Federal Register (66 F.R. 56805), Nov. 13, 2001.

99 Senator Sam Brownback, Statement on S. 1675, Congressional Record, Nov. 13, 2001,

p. S11720.
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years, through December 31, 2004. As in the original bilateral textile agreement,

which covered the 3-year period beginning on January 1, 1999, the MOU linked

increases in U.S. quotas on Cambodian apparel to Cambodia’s compliance with

international labor standards. Under the 1999 agreement, the first bilateral textile

agreement in which the United States obtained a commitment from an exporting

country to improve labor conditions in its textile and apparel sector, if the United States

determined by December 1 of each agreement year that working conditions in the

Cambodian sector substantially comply with internationally recognized core labor

standards and Cambodian labor law, U.S. quotas may be increased by as much as 14

percent for the following agreement year, in addition to the normal annual increase in

most quotas of 6 percent.100 On January 8, 2001, the United States announced that

because Cambodia had made progress on the labor standards, it would increase the

quotas for 2001 by 9 percent, in addition to the normal 6-percent annual increases.101

Under the MOU, the United States increased most of Cambodia’s quotas for 2002 by

15 percent; that is, an increase of 9 percent “in recognition of Cambodia’s progress in

reforming labor conditions” in its textile and apparel sector during the last 3 years, in

addition to normal quota increases of 6 percent.102 The MOU provided for an

increase in the potential quota reward for full compliance with international labor

standards of as much as 18 percent, up from 14 percent in the 1999 agreement. The

MOU also granted a 7 percent “uplift,” or increase, in the base quota on cotton knit

shirts and brought one new product under quota (women’s and girls’ wool coats),

bringing the total number of apparel quotas for Cambodia to 13. U.S. apparel imports

from Cambodia totaled $935 million in 2001, up from less than $1 million in 1995, the

year before Cambodia received most-favored-nation (now normal-trade-relations

(NTR)) status. Apparel accounted for almost all U.S. merchandise imports from

Cambodia in 2001.

The U.S.-Vietnam Bilateral Trade Agreement (BTA) entered into force on December 10,

2001, when the United States and Vietnam exchanged letters of implementation.103

Under the BTA, Vietnam received conditional NTR status (subject to an annual

Jackson-Vanik waiver by the President), meaning that U.S. imports of Vietnamese

goods are now subject to much lower rates of duty.104 For example, the 2002 NTR duty

rate on cotton shirts and blouses, a key apparel import from Vietnam, is 20 percent ad

100 The normal annual increases in U.S. quotas of 6 percent for cotton and manmade-fiber goods

and 1 percent for wool goods are cumulative; that is, the base quota on which future increases are

calculated was increased by the designated amount. The labor-related quota increases for Cambodia

are good for 1 year only.

101 For information on working conditions in the Cambodian textile and apparel sector, see the

International Labor Organization, First Synthesis Report on the Working Conditions Situation in

Cambodia’s Garment Sector, Nov. 2001, found at Internet address http://www.ilo.org/public/english/

dialogue/cambodia.htm, retrieved Feb. 20, 2002.

102 Office of the United States Trade Representative, “U.S.-Cambodian Textile Agreement Links

Increasing Trade with Improving Workers’ Rights,” press release 02-03, Jan. 7, 2002, available on its

website at http://www.ustr.gov.

103 Office of the United States Trade Representative, “United States and Vietnam Trade Agreement

Takes Effect Today,” press release 01-110, Dec. 10, 2001, available on its website at http://www.ustr.gov.

104 As of March 1, 2002, the only countries for which the United States had not not granted NTR

status are Afghanistan, Cuba, Laos, and North Korea. NTR status for Afghanistan was restored effective

June 6, 2002.
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valorem, compared with a non-NTR rate of 45 percent ad valorem. The BTA also

required Vietnam to reduce its tariffs on many goods, eliminate nontariff barriers,

protect intellectual property rights, and open its market to U.S. investment. The BTA is

likely to spur imports of apparel from Vietnam, which already exports significant

quantities to other markets such as the EU. In 2001, U.S. apparel imports from Vietnam

were $48 million. Although apparel imports from Vietnam currently are not subject to

quotas, the United States has held discussions with Vietnam regarding negotiation of a

bilateral textile agreement providing for the establishment of quotas.

Trade Preferences for Sub-Saharan Africa and

Caribbean Basin

The Trade and Development Act of 2000, enacted on May 18, 2000, provided for

expanded trade benefits for 48 eligible countries in sub-Saharan Africa (SSA) under

title I, the African Growth and Opportunity Act (AGOA), and 24 Caribbean Basin

Economic Recovery Act (CBERA) beneficiary countries under title II, the United

States-Caribbean Basin Trade Partnership Act (CBTPA). The legislation authorized

duty-free and quota-free treatment for certain textiles and apparel from SSA and

CBERA beneficiary countries.105 In general, the trade benefits are limited to goods

made from yarns or fabrics formed in the United States or a beneficiary country. The

legislation also authorized preferential treatment for apparel made in the AGOA and

CBERA countries from fabric or yarn that is not formed in the United States or a

beneficiary country, if it has been determined that such fabric or yarn cannot be

supplied by the domestic industry in commercial quantities in a timely manner (the

fabric or yarn is in “short supply” in the United States) and the President has

proclaimed such treatment.106 A summary of trade developments concerning textiles

and apparel under AGOA and CBTPA during 2001, the first full year of their

implementation, follows below.107

African Growth and Opportunity Act

AGOA authorizes preferential treatment for qualifying textiles and apparel from

eligible SSA countries for 8 years beginning on October 1, 2000. The trade benefits

are available to the 35 countries that the President designated as AGOA beneficiary

countries, provided that these countries satisfy certain customs-related requirements,

including adoption of procedures to prevent unlawful transshipments and the use of

counterfeit documents.108 As of April 23, 2002, 17 countries had met these

105 The Trade and Development Act of 2000 also temporarily suspended or reduced U.S. tariffs on

imports of certain wool articles. For further information on this issue, see USITC, Certain Wool Articles:

First Annual Report on U.S. Market Conditions (investigation No. 332-427), USITC publication 3454,

Sept. 2001.

106 For further information on the “short supply” provisions, see USITC, Apparel Inputs in “Short

Supply” (2001): Effect of Providing Preferential Treatment to Apparel from Sub-Saharan African and

Caribbean Basin Countries (investigation No. 332-428), USITC publication 3492, Feb. 2002.

107 For more information on the textile provisions of the AGOA and the CBTPA, see USITC, The Year

in Trade: Operation of the Trade Agreements Program, 52nd Report, USITC publication 3428, June

2001, ch. 5, pp. 5-27 to 5-30.

108 In Proclamation 7350 of October 2, 2000, the President designated 35 countries as beneficiary

SSA countries and delegated to the USTR the authority to determine whether these countries have met the

two requirements.
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requirements and, hence, are eligible for the trade benefits (Kenya, Mauritius,

Botswana, Ethiopia, Lesotho, Madagascar, Malawi, South Africa, Swaziland,

Uganda, Namibia, Zambia, Tanzania, Cameroon, Mozambique, Ghana and

Senegal).

AGOA extends duty-free and quota-free treatment to apparel assembled in SSA

countries from U.S.-origin fabrics, as well as specified quantities of apparel made

from “regional fabrics” that are produced in SSA countries from U.S. or SSA yarns.

Imports of apparel made in SSA countries from regional fabrics are subject to an

annual “cap” that began on October 1, 2000, equal to 1.5 percent of total U.S.

apparel imports by quantity in the preceding 12-month period, and rising in each of

the seven succeeding 1-year periods in equal increments, to 3.5 percent in the final

1-year period beginning on October 1, 2007. A special rule allows apparel entered

under the “cap” from “lesser developed” SSA countries to be made of third-country

fabrics (fabrics other than of U.S. or SSA origin) for the first 4 years, through

September 30, 2004.109 Legislation passed by the U.S. House of Representatives in

November 2001 (HR. 3009, the Andean Trade Promotion and Drug Eradication Act)

would amend the AGOA by doubling the size of the “cap;” that is, it would change the

applicable percentage from the current level of 1.5 to 3.5 percent to a level of 3 to 7

percent over the 8-year period. H.R. 3009 would also clarify that preferential

treatment is to be provided for knit-to-shape garments assembled in SSA countries and

allow Namibia and Botswana to use third-country fabrics under the regional fabric

cap (a provision set aside only for lesser-developed countries) through September

2004.110

U.S. imports of textiles and apparel from SSA countries in 2001 grew 25 percent over

the 2000 level to 234 million SMEs (valued at $975 million). Almost all the imports

consisted of apparel and came from eight countries, led by South Africa (59 million

SMEs), Lesotho (51 million), Mauritius (41 million), and Madagascar (37 million).

Imports of apparel increased by 33 percent to 218 million SMEs ($951 million),

representing 1.4 percent of total U.S. apparel imports in 2001. Imports entered under

the regional fabric cap–and eligible for preferential treatment–were 41.9 million

SMEs, representing a “fill rate” of 17 percent. Imports under this cap came almost

entirely from lesser-developed countries, which can use third-country fabrics during

the transition period.

109 The AGOA defines a lesser-developed SSA country as one that had a per capita gross national

product of less than $1,500 in 1998, as measured by the World Bank. All but six SSA countries

(Botswana, Gabon, Mauritius, Namibia, Seychelles, and South Africa) meet the definition of a

lesser-developed country.

110 The House report on H.R. 3009 states that, although Botswana and Namibia do not qualify as

lesser developed countries, they do not have fabric-making capacity and, thus, need the ability to use

third-country fabrics for a limited period to aid in the development of their textile and apparel industries.

See U.S. House of Representatives, Andean Trade Promotion and Drug Eradication Act, 107th Cong., 1st

sess., Report 107-290, Nov. 14, 2001, p. 21.
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U.S. industry reported new sourcing contracts with African suppliers and numerous

investments in textile and apparel facilities directly attributed to AGOA.111 Textile

investment in a major export processing zone in Madagascar tripled in January-June

2001 from the year-earlier level.112 In Lesotho, a Taiwanese textile firm is building a

large vertically integrated fabric and jeans facility that will be equipped with

state-of-the-art production equipment.113 A Sri Lankan textile firm invested $1.5 million

in a garment factory in Botswana, while Kenya signed several agreements with

Chinese textile and apparel investors. Asian investment in SSA textile and apparel

production partly reflects the trade benefits under AGOA and competitive labor costs

in certain SSA countries.114

Caribbean Basin Trade Partnership Act

The CBTPA provides for preferential treatment for qualifying textiles and apparel from

CBERA beneficiary countries during a transition period beginning on October 1, 2000,

and ending on the earlier of September 8, 2008, or the date on which the Free-Trade

Area of the Americas or a comparable free-trade agreement between the United

States and CBERA countries enters into force. The preferential treatment, essentially

equivalent to that provided under NAFTA for similar goods from Mexico, is available

to 24 countries that the President designated as CBTPA beneficiary countries, provided

they meet certain customs-related requirements under the CBTPA. As of March 1,

2002, 14 countries had met these requirements and, hence, are eligible for the new

trade benefits (the Dominican Republic, El Salvador, Costa Rica, Guatemala, Haiti,

Honduras, Jamaica, Barbados, Belize, Guyana, Nicaragua, Panama, Saint Lucia,

and Trinidad and Tobago).

The CBTPA authorizes duty-free and quota-free treatment for apparel made in CBERA

countries from U.S.-origin fabrics, as well as limited quantities of apparel produced

from “regional knit fabrics” formed in those countries from U.S. yarns.115 Duty-free

benefits for apparel made from regional knit fabrics are capped at 4.2 million dozen

outerwear T-shirts and 250 million SMEs of other knit apparel for the 1-year period

that began on October 1, 2000. Both caps on knit apparel are to be increased by 16

percent in each of the three succeeding 1-year periods, increasing to maximum levels

in the fourth year of almost 6.6 million dozen T-shirts and 390 million SMEs of other

knit apparel, and remain at these levels for the duration of the program.

111 “2001 Comprehensive Report of the President of the United States on U.S. Trade and Investment

Policy Toward Sub-Saharan Africa and Implementation of the African Growth and Opportunity Act,”

May 2001, p. 3.

112 U.S. Department of State telegram, “Madagascar July 2001 Commercial Notes,” message

reference No. 1177, prepared by U.S. Embassy, Antananarivo, July 31, 2001.

113 U.S. Department of State telegram, “Prime Minister Officiates at AGOA-Driven USD 106 Million

Textile Investment,” message reference No. 335, prepared by U.S. Embassy, Maseru, June 29, 2001.

114 U.S. Department of State telegram, “Maximizing AGOA Benefits: Botswana A Victim of its Own

Success,” message reference No. 2047, prepared by U.S. Embassy, Gaborone, June 5, 2001.

115 Knit apparel made in CBERA countries from regional knit fabrics includes garments cut and

assembled from knit fabrics or those knit-to-shape directly from yarns (sweaters). However, it does not

include socks.
5-35

H.R. 3009 would greatly expand both caps on knit apparel. The T-shirt cap would be

almost 5 million dozen for the 1-year period beginning on October 1, 2001, increasing

in the three succeeding 1-year periods to 9 million, 10 million, and 12 million dozen,

and remain at that level through September 2008. Similarly, the cap on other knit

apparel would be 290 million SMEs for the first 1-year period, rising in the three

succeeding 1-year periods to 500 million, 850 million, and 970 million SMEs, and

remain unchanged thereafter. H.R. 3009 would also clarify that preferential treatment

is to be provided for knit-to-shape garments assembled in CBTPA countries116 and add

new rules to ensure and give effect to Congressional intent that authorizes preferential

treatment for apparel subject to “hybrid cutting” (apparel made from fabrics cut both

in the United States and CBERA countries).

The U.S. textile industry has expressed concern about the CBTPA as it relates to the

dyeing and finishing of fabrics for use in CBERA production of apparel for export to the

United States. The CBTPA grants preferential treatment to qualifying apparel articles

assembled in CBERA countries from “fabrics wholly formed in the United States” of U.S.

yarns. The CBTPA does not define “fabrics wholly formed in the United States,” raising

the question of whether the fabrics must be dyed and finished in the United States or

whether they can also be dyed and finished in CBERA countries. The interim

regulations issued by the U.S. Customs Service to implement the trade benefit

provisions of the CBTPA do not specifically address the dyeing and finishing issue.117 In

the absence of a specific statutory requirement or regulation, preferential treatment

currently is being granted to imports of qualifying apparel articles assembled in

CBERA countries from U.S.-formed fabrics, regardless of whether the fabrics were

dyed or finished in the United States or CBERA countries.

Speaker of the House J. Dennis Hastert, House Majority Leader Richard K. Armey, and

House Majority Whip Tom DeLay, in a letter to Congressman Jim DeMint dated

December 6, 2001, said they would “pledge to bring no future bills with trade

provisions to the House floor until the Trade and Development Act of 2000 is corrected

to require that U.S. knit and woven fabrics be required to undergo all dyeing, finishing,

and printing procedures in the United States in order to qualify for the benefits” of the

CBTPA and “that this same requirement . . . will be included on any Andean Trade

Preferences Act (ATPA) that contains additional textile preferences before it is

considered again by the full House.”118 As of March 1, 2002, the House of

Representatives had not considered the dyeing and finishing issue.

116 The interim regulations issued by the U.S. Customs Service to implement the trade benefit

provisions of the CBTPA stipulated that knit-to-shape garments are not eligible for trade benefits because

they technically do not go through the fabric stage. See Andean Trade Promotion and Drug Eradication

Act, U.S. House of Representatives, 107th Cong., 1st sess., Report 107-290, Nov. 14, 2001, p. 18.

117 In the interim regulations (published in the Federal Register of October 5, 2000 (65 F.R. 59650)),

which went into effect on October 1, 2000, Customs defined “wholly formed,” when used with reference

to fabrics, as “all of the production processes, starting with polymers, fibers, filaments, textile strips,

yarns, twine, cordage, rope, or strips of fabric and ending with a fabric by a weaving, knitting, needling,

tufting, felting, entangling or other process, [that] took place in a single country.”

118 “Leadership Letter on Dyeing and Finishing,” Inside Trade, Dec. 6, 2001, found at Internet

address http://www.insidetrade.com, retrieved Dec. 12, 2001.
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U.S. imports of textiles and apparel from CBERA countries in 2001 declined by 2

percent from the 2000 level to 3.7 billion SMEs. The caps on other knit apparel had fill

rates of 74 percent for the outerwear T-shirts and 29 percent for other knit apparel for

the 1-year period beginning on October 1, 2000. Although the CBTPA may not have

stimulated significant new trade flows during its first year, it generated significant duty

savings for U.S. apparel companies sourcing apparel from CBERA countries.119

The trade benefits provided under the CBTPA are expected to spur long-term economic

growth in CBERA countries by enhancing opportunities for these countries to expand

trade with the United States and, at the same time, promote the growth of U.S. exports

and the use of U.S. fabrics, yarns, and fibers. The trade benefits are expected to help

CBERA firms compete more effectively with suppliers in Mexico and Asia, to secure

longer term contracts, and to capture new investment. The CBTPA reportedly has

encouraged the return of some firms to the Caribbean Basin from Mexico; spurred

new investment in cutting, stonewashing, and dyeing equipment in several countries;

and contributed to an increase of about 10,000 employees in Guatemala since

October 2000.120 U.S. industry sources indicated that the CBTPA has encouraged

creation of alliances between U.S. and CBERA firms in which CBERA firms now provide

their U.S. customers with “full-package” programs.121 These programs are becoming

a key part of the business strategy of CBERA firms in competing with Asian suppliers,

which have offered the programs for many years.122

Andean Trade Preference Expansion Act

The Andean Trade Preference Act (ATPA) was enacted in 1991 to expand economic

alternatives for Bolivia, Colombia, Ecuador, and Peru in their fight against drug

production and trafficking. The program, which expired on December 4, 2001,

provided duty-free access to the U.S. market for most goods originating in the ATPA

countries and reduced duties on leather apparel and certain other leather goods such

as luggage. The ATPA countries have expressed concern that the implementation of

the CBTPA in 2000 has weakened their competitiveness in the U.S. apparel market and

led to a loss of apparel trade to the CBERA countries. U.S. apparel imports from the

ATPA countries in 2001 declined by 11 percent from the 2000 level to 142 million SMEs

($754 million), most of which came from Colombia and Peru. The trade-weighted

average duty on such imports from the ATPA countries was 17.5 percent ad valorem.

119 The American Apparel & Footwear Association reported that its member companies saved $100

million in duties on imports of CBERA apparel and footwear during the first half of 2001, compared with

year-ago levels. See Office of the United States Trade Representative, Fourth Report to Congress on the

Operation of the Caribbean Basin Economic Recovery Act, Dec. 31, 2001, p. 58.

120 U.S. Department of State telegram, “Dominican Republic: Input for Report to Congress on CBI,”

message reference No. 12958, Sept. 19, 2001; and interviews by Commission staff with representatives

of Dominican apparel producers, Santo Domingo, June 6, 2001, and the Guatemalan Government,

Guatemala City, June 15, 2001.

121 Full-package programs refer to arrangements in which a supplier agrees to provide a range of

services, such as apparel design, fabric procurement, and apparel assembly, packaging, and

distribution, or any combination of these services. In Guatemala, for example, a representative of

AGEXPRONT estimated that 40 percent of the assembly plants now offer full-package services (interview

by Commission staff, Guatemala City, June 15, 2001).

122 Representatives of a Guatemalan apparel producer, interview by Commission staff, Guatemala,

June 2001.
5-37

As discussed above, legislation introduced in the U.S. Congress in 2001 would renew

ATPA and extend duty-free benefits to certain apparel articles from the four ATPA

beneficiary countries. H.R. 3009, the Andean Trade Promotion and Drug Eradication

Act (ATPDEA) was passed by the House of Representatives in November 2001. On

November 29, 2001, the Senate Committee on Finance incorporated the substance of

S. 525, ATDPEA with some modifications, in H.R. 3009. The Senate version of ATDPEA

awaits action by the full Senate. A comparison of the Senate (S. 525) and House

versions of H.R. 3009 as they relate to apparel made in ATPA countries appears in

table 5-11.

Peru has expressed concern about the Senate version of the bill, which would extend

preferential treatment only to limited quantities of apparel made in ATPA countries

from regional fabrics. Unlike Colombia, Peru uses very few U.S. components in the

production of apparel for export to the United States. Much of the Peruvian apparel

destined for the U.S. market is believed to made from yarns and fabrics produced

locally. Peru’s textile and apparel industry is vertically integrated from fiber to finished

product, and is a major market for the output of Peru’s significant pima and tanguis

cotton-growing sector. According to sources in Peru, if articles made from fabrics of

Peruvian pima and tanguis cotton were included in any regional fabric provision for a

renewed ATPA, then “100 percent of Peruvian cotton garment and textile exports

would receive duty-free entry to the United States.”123 Without such a regional fabric

provision, sources in Peru claimed that they would receive no benefit from ATPA

renewal and expansion and that Colombia’s maquila-based textile and apparel

sector would have a cost advantage over Peru.124

U.S. Textile and Apparel Trade in 2001

U.S. imports of textiles and apparel in 2001 declined by less than 0.5 percent from the

2000 level to 32.9 billion SMEs ($70.2 billion), the first time in more than a decade that

imports of these goods have fallen.125 The import decline is believed to largely reflect

the slowdown in U.S. economic activity that began in early 2001, exacerbated by

events following the terrorist attacks of September 11. The major import is apparel,

which accounted for almost half (16.1 million SMEs) of the import quantity but 80

percent ($57.2 billion) of the import value in 2001.

The decline in U.S. textile and apparel imports in 2001 resulted mainly from smaller

shipments from countries with which the United States provided preferential market

access–namely, Mexico and the CBERA countries. Imports from Mexico decreased by

10 percent to 4.3 billion SMEs ($8.9 billion), while those from the CBERA countries fell

123 U.S. Department of State telegram, “Peru’s Tanguis and Pima Cotton: An ATPA Factsheet,”

prepared by U.S. Embassy, Lima, Oct. 11, 2001.

124 Ibid.

125 The trade data in this section represent imports of goods subject to U.S. textile trade agreements,

as published in the Major Shippers Report of the U.S. Department of Commerce, Office of Textiles and

Apparel (OTEXA). The data are available on OTEXA’s web site at http://otexa.ita.doc.gov.
5-38

by 2 percent to 3.7 billion SMEs ($9.5 billion). Mexico remained the largest foreign

supplier with an import share of 13 percent in 2001; the CBERA countries as a group

accounted for 11.3 percent of the total. It is likely that the import decline from Mexico

and the CBERA countries can be attributed to their dependence on U.S. demand for

their goods.

Table 5-11

Comparison of Senate and House versions of H.R. 3009

Item Senate version House version

Apparel assembled in ATPA

countries from U.S. fabrics

U.S. yarn

Requires U.S. thread

U.S. or regional yarn

No thread requirement

Apparel assembled in ATPA

countries from components

knit-to-shape in the

United States

U.S. yarn only

Requires U.S. thread

U.S. or regional yarn (chief weight

of llama or alpaca)

No thread requirement

Apparel assembled in ATPA

countries from components

knit-to-shape in ATPA countries

U.S. yarn only

Subject to cap

U.S. or regional yarn

Subject to cap

Apparel assembled in ATPA

countries from regional fabrics

U.S. yarn only

Subject to cap

U.S. or regional yarn

Subject to cap

Size of regional fabric cap 70 million SMEs

Increases 16 percent

annually

Ranges from 3 to 6 percent (first

year to last year) of total U.S.

apparel imports in SMEs

(3 percent equals about

486 million SMEs)

Source: USTR, Nov. 28, 2001

Imports from Asia in 2001 rose by 2 percent over the 2000 level to 15.8 billion SMEs

($35.4 billion), down from 12 percent and 7 percent gains in the previous 2 years.

Imports from China, the third-largest foreign supplier after Mexico and Canada,

declined by less than 0.5 percent to 2.2 billion SMEs ($6.5 billion). The increase in

Asian imports resulted mainly from larger shipments from Pakistan, up by 10 percent

to 2.2 billion SMEs ($1.9 billion); Indonesia, up by 11 percent to 1.2 billion SMEs ($2.6

billion); and the ASEAN countries, up by 4 percent to 4.4 billion SMEs ($10.0 billion).

Major U.S. Trade Sanctions Activities

The United States imposes economic sanctions to restrict or prohibit trade with respect

to specific foreign countries126 under numerous statutory authorities. Many of the

sanctions are administered and enforced by the Office of Foreign Assets Control

(OFAC) of the U.S. Department of the Treasury and the Bureau of Export

Administration (BXA) of the U.S. Department of Commerce. Other agencies that

administer and enforce U.S. sanctions include the Customs Service of the U.S.

Department of the Treasury and the Office of Defense Trade Controls of the U.S.

Department of State.

126 The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury lists the

following countries as subject to U.S. economic sanctions: Burma (Myanmar), Cuba, Iran, Iraq, Liberia,

Libya, North Korea, Sierra Leone, and Sudan. OFAC, found at Internet address

http://www.ustreas.gov/ofac/, retrieved Feb. 20, 2002.
5-39

On July 12, 2001, BXA and OFAC published regulations implementing certain

provisions of the Trade Sanctions Reform and Export Enhancements Act of 2000

(TSRA).127 The regulations, which entered into effect on July 26, 2001, establish

procedures that allow certain U.S. agricultural and medical exports to Cuba, Iran,

Libya, and Sudan–countries subject to longstanding U.S. trade sanctions. BXA

implemented the provisions of TSRA for exports of agricultural commodities to Cuba

(U.S. exports of medicines and medical devices are not eligible for export or reexport

to Cuba under TSRA procedures; however, they are subject to authorization under the

provisions of the Cuban Democracy Act (22 U.S.C. 6004)). OFAC implemented the

provisions of TSRA for exports of agricultural commodities, medicines, and medical

devices to Iran, Libya, and Sudan.128 Also during 2001, BXA published regulations

implementing provisions of the President’s September 22, 2001 waiver of U.S.

unilateral economic sanctions with respect to India and Pakistan.129

127 66 F.R. 36675. TSRA was signed into law by the President on Oct. 28, 2000 (title IX of Public Law

106-387). TSRA exempts certain agricultural commodities, medicines, and medical devices from U.S.

trade sanctions.

128 66 F.R. 36675.

129 The United States imposed unilateral economic sanctions with respect to India and Pakistan in

1998 after those countries detonated nuclear explosive devices (for further information, see USITC,

Overview and Analysis of the Economic Impact of U.S. Sanctions with Respect to India and Pakistan,

investigation No. 332-406, USITC publication No. 3236, September 1999). Certain components of those

sanctions related to nonmilitary trade subsequently were waived. Sanctions waived in 2001 related to

exports of items controlled for nuclear proliferation and missile technology and supplementary measures

with respect to trade with certain Indian and Pakistani military and government entities. 66 F.R. 50090.

APPENDIX

Statistical Tables
Table A-1

U.S. merchandise trade with European Union, by SITC numbers (revision 3), 1999-2001

(1,000 dollars)

SITCSectionNo. Description 1999 2000 

U.S. exports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,685,507 3,479,349 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,805,302 1,536,893 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,385,862 6,155,022 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,542,281 1,713,744 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169,567 138,194 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,804,600 21,364,841 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,845,272 8,920,843 

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,331,409 81,953,893 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,210,837 20,784,371 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,248,461 6,605,283 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,029,097 152,652,434 

U.S. imports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,533,967 3,511,221 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,717,858 4,997,584 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,793,623 1,836,631 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,893,800 7,762,528 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351,592 448,383 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,764,272 37,610,492 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,351,765 25,757,043 

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,014,441 94,796,867 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,469,396 29,415,763 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,518,671 12,238,937 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,409,387 218,375,449 

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-2

Leading exports to the European Union, by Schedule B numbers, 1999-2001

(1,000 dollars)

Schedule BNo. Description 1999 2000 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,022,788 9,469,489 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,961,909 7,891,114 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,288,191 4,763,975 

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 1,772,463 2,321,217 

9880.001 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind shipments

to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,440,968 3,773,093 

8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,435,090 3,701,269 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,870,696 2,480,363 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,451,379 2,677,704 8411.12 Turbojets of a thrust exceeding 25 kN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,597,811 1,908,172 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,381,000 1,906,895 

9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . 1,441,141 1,387,245 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,275,214 1,881,775 3822.00 Composite diagnostic or laboratory reagents, except pharmaceuticals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,270,651 1,403,820 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 993,611 988,098 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity

over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,245,344 952,371 

1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,049,384 1,148,300 8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843,635 1,088,684 8411.99 Gas turbines parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 855,716 827,947 3002.10 Antisera and other blood fractions, and modified immunological products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627,287 838,746 9018.19 Electro-diagnostic apparatus n.e.s.o.i., and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 779,372 852,162 9018.39 Medical etc. needles n.e.s.o.i., catheters, cannulae and the like; parts and accessories thereof . . . . . . . . . . . . . . . . . . . 713,443 820,746 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity

over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 869,438 717,858 

8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739,319 1,321,741 9701.10 Paintings, drawings and pastels, executed entirely by hand, framed or not framed . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471,402 537,770 2701.12 Bituminous coal, whether or not pulverized, but not agglomerated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 846,926 809,677 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,244,177 56,470,229 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,784,920 96,182,204 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,029,097 152,652,434 

1 Special “Census Use Only” reporting number estimating low-valued exports.

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-3

Leading imports from the European Union, by HTS numbers, 1999-2001

(1,000 dollars)

HTS No. Description 1999 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,054,001 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,589,150 

9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or

returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,357,200 

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,941,302 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,642,602 2933.90 Heterocyclic compounds with nitrogen hetero-atom(s) only, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,307,458 

2934.90 Heterocyclic compounds, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,546,813 

2710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and preparations, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . 2,607,538 8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,421,504 8411.12 Turbojets of a thrust exceeding 25 kN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,451,486 9999.951 Estimated ”low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,031,082 

9701.10 Paintings, drawings and pastels, executed entirely by hand, framed or not framed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,716,028 7102.39 Nonindustrial diamonds, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,940,591 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,971,822 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,713,141 8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,269,226 

8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,163,871 7113.19 Articles of jewelry and parts thereof, of precious metal (excluding silver) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,461,379 2204.21 Wine n.e.s.o.i. of fresh grapes or fortified wine, in containers not over 2 liters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,162,254 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,187,068 2203.00 Beer made from malt ....................................................................................... 975,050 

8411.99 Gas turbines parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 652,787 

9706.00 Antiques of an age exceeding one hundred years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,079,638 

2931.00 Organo-inorganic compounds, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731,712 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452,372 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,427,072 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,982,314 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,409,387 

1 Special “Census Use Only” reporting number estimating low-valued imports.

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-4

U.S. merchandise trade with Canada, by SITC numbers (revision 3), 1999-2001

(1,000 dollars)

SITCSectionNo. Description 1999 2000 

U.S. exports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,342,636 6,850,281 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371,685 377,451 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,034,353 4,498,277 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,141,409 2,641,537 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177,459 188,533 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,367,219 15,626,960 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,605,336 23,030,383 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,938,832 83,611,602 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,154,294 15,978,557 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . 2,598,207 2,797,228 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145,731,430 155,600,810 

U.S. imports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,360,632 9,219,360 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 893,432 907,145 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,986,090 12,013,275 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,249,747 31,386,515 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375,408 300,501 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,990,311 11,573,183 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,991,704 33,572,742 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,313,100 97,455,708 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,194,771 15,558,466 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . 14,887,189 17,073,034 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198,242,386 229,059,929 

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-5

Leading exports to Canada, by Schedule B numbers, 1999-2001

(1,000 dollars)

Schedule BNo. Description 1999 2000 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,364,613 5,271,976 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,375,615 3,566,966 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,366,923 5,291,223 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,944,609 4,161,435 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,234,377 4,269,000 

9880.001 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind

shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,648,622 1,878,189 

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross

vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,523,738 2,801,399 

8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,380,793 2,256,924 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,253,163 1,587,818 8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,745,780 1,582,284 3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . 963,199 1,287,188 

2716.00 Electrical energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206,283 397,558 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,948,081 2,004,122 

8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,115,271 1,407,421 9032.89 Automatic regulating or controlling instruments and apparatus, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,146,714 1,217,152 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,060,806 1,172,860 

8708.39 Brakes and servo-brakes and parts for motor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,167,227 1,061,236 2710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and preparations, n.e.s.o.i. . . . . . . . . . . . 625,620 885,887 7606.12 Rectangular plates, sheets and strip, over 0.2 mm thick, of aluminum alloy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 889,556 970,385 7326.90 Articles of iron or steel n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 645,562 712,160 

8481.80 Taps, cocks, valves and similar appliances, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 699,279 764,245 

8704.21 Trucks, n.e.s.o.i., diesel engine, gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 526,911 627,834 4901.99 Printed books, brochures, leaflets and similar printed matter, other than in single sheets . . . . . . . . . . . . . . . . . . . . . . . . 800,715 748,726 

9401.90 Parts of seats (except medical, barbers, dentist, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 959,182 902,253 8534.00 Printed circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 695,353 848,466 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,287,996 47,674,707 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,443,434 107,926,103 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145,731,430 155,600,810 

1 Special “Census Use Only” reporting number estimating low-valued exports.

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-6

Leading imports from Canada, by HTS numbers, 1999-2001

(1,000 dollars)

HTS No. Description 1999 2000 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity

over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,110,928 27,938,810 

2711.21 Natural gas, gaseous state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,069,527 10,360,686 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,551,626 12,654,204 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . . . . . . 8,943,333 9,953,465 8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross vehicle weight

not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,212,575 8,311,941 

4407.10 Coniferous wood sawn or chipped lengthwise, sliced or peeled, of thickness exceeding 6mm . . . . . . . . . . . . . . . . . . . . 6,799,939 5,974,838 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity

over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,689,407 5,718,954 

2710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and preparations, n.e.s.o.i. . . . . . . . . . . . 2,141,459 3,628,134 

9999.951 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,365,257 3,909,776 

4801.00 Newsprint, in rolls or sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,341,296 3,674,117 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,372,669 3,535,305 

2716.00 Electrical energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,333,614 2,710,622 8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,857,419 1,937,916 

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,384,620 2,669,694 8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,793,083 2,730,127 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,222,317 2,282,321 4802.60 Paper n.e.s.o.i., over 10% (weight) fiber obtained by mechanical process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,449,828 1,558,747 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,546 1,050,243 

8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,738,299 1,838,707 4703.21 Chemical woodpulp, soda or sulfate, other than dissolving grades, semibleached or bleached, coniferous wood . . . . . 1,610,566 2,023,299 7601.10 Aluminum, not alloyed, unwrought . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816,409 877,050 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,736,512 2,803,404 7601.20 Unwrought aluminum alloys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,411,383 1,540,066 2711.12 Propane, liquefied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 526,945 960,329 7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder . . . . . . . . . . . . . . . . . . . . . . . . 1,324,566 1,345,728 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,882,124 121,988,483 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,360,262 107,071,446 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198,242,386 229,059,929 

1 Special “Census Use Only” reporting number estimating low-valued imports.

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-7

U.S. merchandise trade with Mexico, by SITC numbers (revision 3), 1999-2001

(1,000 dollars)

SITCSectionNo. Description 1999 2000 

U.S. exports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,836,359 4,473,330 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,536 69,788 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,571,318 3,012,123 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,252,741 4,276,604 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358,810 302,663 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,019,691 8,647,873 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,081,576 14,970,782 

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,179,206 48,305,363 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,918,646 11,447,912 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,091,857 4,935,657 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,380,740 100,442,094 

U.S. imports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,398,281 4,516,858 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,002,023 1,281,975 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 863,665 908,388 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,194,267 11,268,437 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,495 19,100 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,975,843 2,128,790 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,998,994 9,111,009 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,567,565 79,305,496 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,901,880 20,237,799 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,089,148 5,956,550 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,018,159 134,734,402 

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-8

Leading exports to Mexico, by Schedule B numbers, 1999-2001

(1,000 dollars)

Schedule BNo. Description 1999 2000 9880.001 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind

shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,900,664 3,670,027 

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,549,452 2,660,679 2710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and preparations, n.e.s.o.i. . . . . . . . . . . . 1,729,326 3,183,295 3926.90 Articles of plastics and articles of other materials of headings 3901 to 3914, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,672,328 2,079,024 

8540.11 Cathode-ray television picture tubes, color, including monitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,297,951 1,691,051 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443,968 1,108,363 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,314,781 1,611,930 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,431,027 1,111,382 

8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443,328 836,879 

8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 904,197 1,401,902 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,285,142 1,244,304 8536.90 Electrical apparatus for switching or protecting electrical circuits, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 801,511 1,135,485 

8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 884,069 1,261,169 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 676,312 853,155 

7326.90 Articles of iron or steel, n.e.s.o.i. ................................................................... 908,616 1,185,456 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 662,716 680,790 9401.90 Parts of seats (except medical, barbers, dentist, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 548,774 727,002 8538.90 Parts for electrical apparatus for electrical circuits; for electrical control, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,035,652 953,654 8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,529 655,386 8503.00 Parts of electric motors, generators and sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 678,665 647,743 8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267,051 709,639 

1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534,868 517,508 4819.10 Cartons, boxes and cases corrugated paper and paperboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580,073 603,216 8408.20 Compression-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517,129 728,299 1007.00 Grain sorghum ................................................................................ 385,094 455,488 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,694,223 31,712,826 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,686,517 68,729,267 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,380,740 100,442,094 

1 Special “Census Use Only” reporting number estimating low-valued exports.

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-9

Leading imports from Mexico, by HTS numbers, 1999-2001

(1,000 dollars)

HTS No. Description 1999 2000 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,890,696 9,291,491 

2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,265,301 9,837,980 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,879,346 6,237,212 

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross vehicle

weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,927,390 2,708,695 

8528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,089,084 4,540,232 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . . . . . . . . . 3,511,295 4,054,720 

8544.30 Insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships . . . . . . . . . . . . . . . . . . . . . . . 3,996,215 4,171,292 

8525.10 Transmission apparatus for radio or television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,655,729 2,791,842 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,230,220 2,475,298 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 668,626 1,801,427 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,983,292 2,333,255 9401.90 Parts of seats (except medical, barbers, dentist, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,827,154 2,059,572 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157,055 871,055 8527.21 Radiobroadcast receivers for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,288,093 1,743,547 8704.21 Trucks, n.e.s.o.i., diesel engine, gross vehicle weight not exceeding 5 mt ....................................... 823,327 1,732,431 8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU, keyboard

and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,477,843 1,730,546 

9999.951 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,203,426 1,523,920 

6203.42 Men’s or boys’ trousers, bib and brace overalls, breeches and shorts not knitted or crocheted, of cotton . . . . . . . . . . . . . . 1,476,566 1,656,737 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 945,863 1,269,143 6204.62 Women’s or girls’ trousers, etc., of cotton, not knitted or crocheted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,159,680 1,461,448 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,505,023 1,449,248 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. ........................................................ 900,590 1,346,377 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 967,360 1,224,114 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289,358 447,731 8537.10 Boards, panels, consoles, other components incorporating apparatus for control or distribution of

electricity, for voltage not exceeding 1,000 volts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 784,263 950,068 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,902,795 69,709,379 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,115,364 65,025,023 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,018,159 134,734,402 

1 Special “Census Use Only” reporting number estimating low-valued imports.

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-10

U.S. merchandise trade with Japan, by SITC numbers (revision 3), 1999-2001

(1,000 dollars)

SITCSectionNo. Description 1999 2000 

U.S. exports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,528,328 8,761,815 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,198,090 2,474,076 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,574,701 3,760,061 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 758,379 806,165 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,242 54,614 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,690,001 6,346,967 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,694,722 3,261,585 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,124,162 24,882,143 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,471,646 9,083,731 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,194,196 1,319,869 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,310,468 60,751,026 

U.S. imports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346,946 351,314 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,640 68,919 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,102 281,708 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293,934 285,191 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,494 24,696 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,493,053 7,139,305 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,618,510 7,873,017 

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,113,670 111,519,412 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,793,937 14,163,190 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,961,704 4,035,114 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,950,990 145,741,866 

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-11

Leading exports to Japan, by Schedule B numbers, 1999-2001

(1,000 dollars)

Schedule BNo. Description 1999 2000 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,747,975 1,844,414 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,769,505 1,881,723 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,665,493 1,915,834 1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,426,405 1,423,613 2402.20 Cigarettes containing tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,719,226 1,936,984 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621,504 923,516 0201.30 Meat of bovine animals, boneless, fresh or chilled ..................................................... 705,520 785,329 

1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 785,485 771,587 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 628,420 889,521 

8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 652,579 1,250,795 9880.001 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind

shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 613,703 702,989 

9801.10 Value of repairs or alterations of previously imported articles, repaired or altered prior to exportation from

United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343,966 394,282 

8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399,444 459,864 2844.20 Uranium and its compounds enriched in U235; plutonium and its compounds ................................ 509,399 543,548 

8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482,535 624,959 

9018.39 Medical etc. needles, n.e.s.o.i., catheters, cannulae and the like; parts and accessories thereof . . . . . . . . . . . . . . . . . . . 382,036 408,755 4403.20 Coniferous wood in the rough, not treated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 699,640 709,158 8411.99 Gas turbines parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294,726 538,760 9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . 401,377 436,643 

1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452,771 422,166 0202.30 Meat of bovine animals, boneless, frozen ............................................................ 579,979 600,279 

0203.19 Meat of swine, fresh or chilled, n.e.s.o.i. ............................................................. 300,295 391,904 

8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,133 319,293 

8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380,674 451,188 8518.40 Audio-frequency electric amplifiers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,043 281,186 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,012,831 20,908,288 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,297,637 39,842,738 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,310,468 60,751,026 

1 Special “Census Use Only” reporting number estimating low-valued exports.

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-12

Leading imports from Japan, by HTS numbers, 1999-2001

(1,000 dollars)

HTS No. Description 1999 2000 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,978,272 23,544,602 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,632,479 9,454,956 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,025,452 4,992,708 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,999,634 5,367,018 8525.40 Still image video cameras and other video camera recorders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,443,674 3,238,066 

9504.10 Video games used with television receiver and parts and accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,926,103 1,614,331 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . . . . . 2,461,413 2,320,545 

8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,939,384 4,792,838 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,774,999 1,991,999 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,272,392 1,465,323 

9999.951 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,423,928 1,621,632 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,347,267 1,172,167 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,826,867 2,066,502 

8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,171,518 1,459,126 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,549,345 1,762,638 3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. . . . . . . . . . . . . . . . . . . 815,386 970,170 8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 876,726 1,096,489 8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 869,591 1,517,989 8703.22 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine over 1,000 but over

1,500 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823,085 802,978 

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 686,883 810,855 

8711.40 Motorcycles and cycles with auxiliary motor, with reciprocating internal combustion piston engine, cylinder

capacity 500 to 800 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402,435 534,342 

8528.30 Video projectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,588 204,576 

8703.21 Other passenger motor vehicles, with spark-ignition internal combustion reciprocating piston engine,

cylinder capacity not over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470,632 660,753 

8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU, keyboard

and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 655,961 842,742 

8525.20 Transmission apparatus incorporation reception apparatus ............................................. 730,119 940,880 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,159,131 75,246,222 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,791,859 70,495,644 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,950,990 145,741,866 

1 Special “Census Use Only” reporting number estimating low-valued imports.

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-13

U.S. merchandise trade with China, by SITC numbers (revision 3), 1999-2001

(1,000 dollars)

SITCSectionNo. Description 1999 2000 

U.S. exports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319,884 457,789 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,800 4,891 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,163,675 2,521,564 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,523 59,565 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,323 20,710 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,077,041 2,290,678 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886,965 1,231,539 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,762,833 7,366,647 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 959,061 1,160,775 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207,795 221,182 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,584,898 15,335,341 

U.S. imports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 861,556 1,020,637 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,251 31,672 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509,001 613,804 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237,729 615,373 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,982 7,551 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,675,170 1,802,681 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,251,243 10,256,089 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,204,597 34,686,724 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,825,773 49,411,102 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 929,980 1,134,881 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,522,281 99,580,514 

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-14

Leading exports to China, by Schedule B numbers, 1999-2001

(1,000 dollars)

Schedule BNo. Description 1999 2000 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,984,493 1,424,415 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347,870 1,007,661 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453,913 406,788 3100.001 Fertilizers ..................................................................................... 930,236 657,616 

8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,398 400,561 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,025 367,177 4101.21 Raw hides and skins of bovine animals, n.e.s.o.i., fresh or wet-salted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,887 210,672 

8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,574 132,418 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,199 138,282 7404.00 Copper waste and scrap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,854 166,955 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264,257 206,212 8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,721 196,572 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,310 183,859 

7204.49 Ferrous waste and scrap, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,857 78,457 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168,344 312,416 7602.00 Aluminum waste and scrap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,368 150,592 8418.61 Other refrigerating or freezing equipment/heat pumps not for air conditioning, having compression type

units whose condensers are heat exchangers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,714 105,483 

8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,790 70,070 8523.20 Magnetic discs, unrecorded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,419 96,270 7204.29 Waste and scrap, of non-stainless alloy steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,252 74,238 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind

shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,519 96,597 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,556 82,355 8406.90 Parts for steam and other vapor turbines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,097 11,680 8541.29 Transistors, other than photosensitive, with a dissipation rate greater than or equal to 1 Watt . . . . . . . . . . . . . . . . . . . . 63,213 96,918 8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,908 41,119 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,640,776 6,715,383 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,944,122 8,619,958 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,584,898 15,335,341 

1 Special “Census Use Only” reporting number aggregating certain fertilizer products to prevent disclosure.

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

Leading imports from China, by HTS numbers, 1999-2001

(1,000 dollars)

HTS No. Description 1999 2000 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,009,122 3,600,386 6403.99 Footwear not covering the ankles, with outer soles of rubber or plastics or composition leather and

uppers of leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,987,661 3,413,695 

8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,827,097 3,646,743 6402.99 Footwear with outer soles and uppers of rubber or plastics, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,273,606 2,318,423 

9503.90 Other toys and models, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,189,402 2,271,244 9505.10 Articles for Christmas festivities and parts and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,195,222 1,340,462 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 889,720 1,206,684 6403.91 Footwear covering the ankles, with outer soles and uppers of rubber or plastics, excluding waterproof

footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,187,775 1,203,039 

8521.90 Video recording or reproducing apparatus, whether or not including a video tuner, other than magnetic

tape-type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,454 609,864 

4203.10 Articles of apparel of leather or composition leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660,968 1,193,607 

8517.11 Line telephone sets with cordless handsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,197,949 1,273,982 9503.41 Stuffed toys, representing animals or non-human creatures, and parts and accessories . . . . . . . . . . . . . . . . . . . . . . . . 1,480,816 1,305,654 

8504.40 Static converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,038,628 1,206,494 9403.60 Wooden furniture, other than of a kind used in the bedroom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745,285 983,400 9504.90 Game machines except coin-operated; board games; mah-jog; dominoes; dice .............................. 707,725 780,605 

9502.10 Dolls representing only human beings and parts and accessories thereof, whether or not dressed . . . . . . . . . . . . . . . . 1,085,615 1,170,330 

9503.49 Other toys, representing animals or non-human creatures, and parts and accessories . . . . . . . . . . . . . . . . . . . . . . . . . 1,195,777 1,121,512 

6110.90 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of textile

materials, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 832,790 836,416 

8525.20 Transmission apparatus incorporating reception apparatus .............................................. 235,528 515,387 

9999.951 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585,871 759,361 

9503.70 Toys, put up in sets or outfits and parts and accessories, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,098 744,095 

9403.20 Metal furniture, other than of a kind used in offices 496,631 671,430 4202.92 Trunks, cases, bags and similar containers, with outer surface of plastic sheeting or of textile materials ............ 737,213 784,610 

8519.99 Sound reproducing apparatus, other than cassette type, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595,783 712,424 

8527.13 Other radiobroadcast apparatus combined with sound recording or reproducing apparatus . . . . . . . . . . . . . . . . . . . . 804,221 1,055,520 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,646,956 34,725,369 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,875,325 64,855,145 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,522,281 99,580,514 

1 Special “Census Use Only” reporting number estimating low-valued imports.

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-16

U.S. merchandise trade with Taiwan, by SITC numbers (revision 3), 1999-2001

(1,000 dollars)

SITCSectionNo. Description 1999 2000 

U.S. exports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,275,524 1,283,413 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,196 86,954 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,042,392 1,132,517 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163,102 144,318 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,630 20,277 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,221,945 2,634,748 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 734,044 827,943 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,964,084 12,914,065 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,751,350 2,905,342 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,441 454,107 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,639,708 22,403,683 

U.S. imports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347,058 307,335 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,598 7,802 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,599 155,153 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,397 1,988 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,923 4,426 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483,505 635,063 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,466,426 4,814,402 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,027,902 26,280,161 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,566,697 7,086,821 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,009,932 1,090,582 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,057,037 40,383,733 

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 Taiwan, by Schedule B numbers, 1999-2001

(1,000 dollars)

Schedule BNo. Description 1999 2000 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,541,122 2,702,868 8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,093,658 2,130,893 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453,478 742,026 8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654,697 618,539 1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464,536 456,516 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448,071 384,536 

1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391,596 384,764 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306,791 398,583 9306.90 Bombs, grenades, torpedoes, mines, missiles, etc., and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,892 126,911 8479.90 Parts of machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174,111 308,337 9880.001 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind

shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205,709 278,612 

9031.41 Optical instruments for inspecting semiconductor wafers or devices, or photomasks or reticles used in

manufacturing these items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145,946 377,337 

4101.21 Raw hides and skins of bovine animals, n.e.s.o.i., fresh or wet-salted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151,145 167,773 1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,211 143,633 8456.91 Machine tools n.e.s.o.i. for dry etching patterns on semiconductor materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343,324 382,595 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,626 159,288 

9030.82 Other instruments and apparatus for measuring or checking semiconductor wafers or devices . . . . . . . . . . . . . . . . . . . 192,951 560,298 

8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,579 222,445 5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,083 107,118 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,337 142,570 8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,099 43,404 9801.10 Value of repairs or alterations of previously imported articles, repaired or altered prior to exportation

from United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,686 70,434 

7204.21 Waste and scrap, of stainless steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,210 55,969 9030.90 Parts, accessories of instruments, apparatus for measuring, checking, detecting electrical quantities,

or ionizing radiations, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,052 115,599 

2844.20 Uranium and its compounds enriched in U235; plutonium and its compounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,124 29,086 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,322,036 11,110,136 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,317,673 11,293,548 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,639,708 22,403,683 

1 Special “Census Use Only” reporting number estimating low-valued exports.

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 Taiwan, by HTS numbers, 1999-2001

(1,000 dollars)

HTS No. Description 1999 2000 8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU, keyboard

and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,555,252 3,796,062 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,392,291 3,767,955 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,191,643 3,342,272 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,311,485 1,222,140 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 641,559 892,477 8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,101,954 1,151,296 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned ........... 570,963 567,211 8525.10 Transmission apparatus for radio or television .......................................................... 799,404 908,320 

8534.00 Printed circuits ................................................................................... 593,965 889,636 

8523.90 Prepared magnetic media for sound or similar recording, unrecorded, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256,121 447,662 

8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,029 614,463 9999.951 Estimated ”low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424,869 502,761 

6110.30 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of man-made fibers . . . . . . . 380,870 385,694 8504.40 Static converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,420 487,132 9506.91 Gymnasium, playground or other exercise articles and equipment; parts and accessories thereof ................... 202,930 270,909 

7318.15 Threaded screws and bolts, of iron or steel, n.e.s.o.i., whether or not with their nuts or washers . . . . . . . . . . . . . . . . . . . . 282,010 318,338 

8471.41 Digital ADP machines, comprising in same housing at least a central processing unit and an input and output unit,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,912 170,869 

7318.14 Self-tapping screws of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233,298 260,876 8481.80 Taps, cocks, valves and similar appliances, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254,307 277,273 

8465.91 Sawing machines for working wood, cork, bone, hard rubber, hard plastics, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241,875 286,638 

8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126,236 202,349 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204,080 177,235 

8712.00 Bicycles and other cycles (including delivery tricycles), not motorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,703 278,440 8542.19 Electronic monolithic integrated circuits, digital, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,268 119,553 9403.20 Metal furniture, other than of a kind used in offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,570 206,113 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,143,013 21,543,673 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,914,023 18,840,060 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,057,037 40,383,733 

1 Special “Census Use Only” reporting number estimating low-valued imports.

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 Korea, by SITC numbers (revision 3), 1999-2001

(1,000 dollars)

SITCSectionNo. Description 1999 2000 

U.S. exports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,764,918 1,714,703 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,927 169,600 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,610,728 2,059,849 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486,246 353,543 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127,876 77,409 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,092,042 2,641,573 6 Manufactured goods classified chiefly by material ........................................... 850,725 1,053,699 

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,869,789 15,600,067 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,692,366 2,177,858 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423,890 454,136 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,037,507 26,302,437 

U.S. imports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,064 166,134 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,021 23,085 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,134 204,319 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273,017 380,079 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465 2,221 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741,923 849,073 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,409,271 3,748,759 

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,594,397 29,300,191 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,226,571 4,484,802 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 596,440 670,242 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,152,305 39,828,906 

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 Korea, by Schedule B numbers, 1999-2001

(1,000 dollars)

Schedule BNo. Description 1999 2000 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,591,446 4,096,225 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 926,510 1,191,408 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510,073 573,842 

8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581,600 1,115,030 

4101.21 Raw hides and skins of bovine animals, n.e.s.o.i., fresh or wet-salted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296,603 444,303 8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373,383 493,663 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,733 597,466 8479.90 Parts of machines and mechanical appliances having individual functions, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181,399 353,891 1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 574,936 206,810 

1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,232 258,824 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,575 395,556 

8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,826 399,144 9880.001 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind

shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209,455 252,390 

1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,997 178,779 0202.30 Meat of bovine animals, boneless, frozen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,811 305,163 

0202.20 Meat of bovine animals, cuts with bone in, other than in half or whole carcasses, frozen . . . . . . . . . . . . . . . . . . . . . . . 71,842 170,945 5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,326 96,088 2926.10 Acrylonitrile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,269 207,526 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234,710 231,877 8542.90 Parts for electronic integrated circuits and microassemblies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,040 204,537 8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,487 353,444 

8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,091 57,069 9801.10 Value of repairs or alterations of previously imported articles, repaired or altered prior to exportation from

United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,405 106,957 

8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,177 150,213 8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,784 113,353 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,608,709 12,554,503 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,428,798 13,747,934 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,037,507 26,302,437 

1 Special “Census Use Only” reporting number estimating low-valued exports.

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 Korea, by HTS numbers, 1999-2001

(1,000 dollars)

HTS No. Description 1999 2000 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,606,787 4,239,011 

8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,628,310 2,915,907 

8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,891,646 6,495,560 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,857,797 2,232,445 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,720,853 2,817,209 8703.22 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine over 1,000 but

over 1,500 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257,096 538,584 

8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514,766 826,815 8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 744,977 1,255,536 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . 437,577 462,619 2710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and preparations, n.e.s.o.i. . . . . . . 240,186 327,419 8516.50 Microwave ovens of a kind used for domestic purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483,339 493,929 6110.30 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of

man-made fibers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397,373 366,245 

8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452,285 587,568 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 1,189 

8521.90 Video recording or reproducing apparatus, whether or not including a video tuner, other than magnetic

tape-type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,781 234,589 

8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU, keyboard

and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,632 320,744 

8525.40 Still image video cameras and other video camera recorders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,329 270,232 6205.30 Men’s or boys’ shirts, of manmade fibers, not knitted or crocheted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,846 257,631 8415.10 Air conditioning machines, window or wall types, self-contained, with motor-driven fan and elements for

changing the temperature/humidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163,581 267,687 

8544.70 Optical fiber cables, made up of individually sheathed fibers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,366 60,830 4011.10 New pneumatic tires, of rubber, of a kind used on motor cars, including station wagons and racing cars . . . . . . 151,190 181,102 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,862 127,120 9999.951 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139,603 189,942 

8534.00 Printed circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164,659 226,558 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . . 391,779 131,064 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,908,753 25,827,536 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,243,552 14,001,369 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,152,305 39,828,906 

1 Special “Census Use Only” reporting number estimating low-valued imports.

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 Brazil, by SITC numbers (revision 3), 1999-2001

(1,000 dollars)

SITCSectionNo. Description 1999 2000 

U.S. exports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,917 140,932 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,857 7,147 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237,697 330,146 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,120 340,673 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,429 2,195 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,505,077 2,793,690 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741,657 752,297 

7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,054,642 8,021,261 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,033,351 1,307,310 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,156 329,804 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,330,902 14,025,456 

U.S. imports

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,287,875 1,027,878 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,724 143,439 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 972,875 1,136,065 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289,498 788,247 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,429 16,367 5 Chemicals and related products, n.e.s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 468,420 668,624 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,467,464 2,916,807 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,554,296 4,283,735 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,349,992 1,649,619 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,145 1,100,790 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,272,720 13,731,571 

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 Brazil, by Schedule B numbers, 1999-2001

(1,000 dollars)

Schedule BNo. Description 1999 2000 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343,474 43,000 8411.12 Turbojets of a thrust exceeding 25 kN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394,056 520,066 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 557,529 701,588 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428,469 426,454 8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189,854 264,230 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479,675 448,985 9880.001 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind

shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209,555 233,827 

8431.43 Parts for boring or sinking machinery, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,916 186,300 8502.39 Other electric generating sets, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,142 0 

8411.82 Gas turbines, except turbojets and turbopropellers, of a power not exceeding 5,000 kW . . . . . . . . . . . . . . . . . . . . . . . 3,157 10,193 3100.002 Fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,813 146,289 

8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130,641 221,607 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. ..................................................... 258,086 252,746 

2701.12 Bituminous coal, whether or not pulverized, but not agglomerated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174,636 157,718 8803.90 Parts of balloons, dirigibles, gliders, other aircraft, spacecraft, satellites, and spacecraft launch

vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,319 51,977 

8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,198 227,166 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441,319 234,874 8431.49 Parts and attachments for derricks, cranes, self-propelled bulldozers, graders, and other grading,

scraping machinery, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,715 111,415 

8411.99 Gas turbines parts, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,393 81,391 8471.90 Other ADP, magnetic and optical reading, transcribing, and processing machines, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . 58,062 78,158 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,650 164,584 8501.34 DC electric motors n.e.s.o.i. and generators, of an output exceeding 375 kW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 6,663 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,336 136,906 

8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,956 131,136 9009.90 Parts and accessories of photocopying apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,372 73,819 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,545,348 4,911,093 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,785,555 9,114,363 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,330,902 14,025,456 

1 Speical “Census Use Only” reporting number estimating low-valued exports. 2 Special “Census Use Only” reporting number aggregating certain fertilizer products to prevent disclosure.

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 Brazil, by HTS numbers, 1999-2001

(1,000 dollars)

HTS No. Description 1999 2000 8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,162,344 1,435,020 2710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and preparations, n.e.s.o.i. . . . . . . . . . . . . . . . 267,236 689,888 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,128 336,643 6403.99 Footwear not covering the ankles, with outer soles of rubber or plastics or composition leather and uppers of

leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745,184 826,772 

9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . . . . . . . . . . 374,755 677,737 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder

capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,349 149,424 

4703.29 Chemical woodpulp, soda, or sulfate, other than dissolving grades, semibleached or bleached,

nonconiferous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331,517 462,480 

7201.10 Nonalloy pig iron containing 0.5 percent or less phosphorus by weight, in primary forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265,095 355,688 

7207.12 Semifinished iron/nonalloy steel products, under 0.25 percent carbon, rectangular/not square, width not less

than twice thickness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399,024 436,633 

7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287,062 364,857 

8414.30 Compressors of a kind used in refrigerating equipment, including air conditioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213,583 217,044 6403.91 Footwear covering the ankles, with outer soles and uppers of rubber or plastics, excluding waterproof

footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,536 159,139 

0901.11 Coffee, not roasted, not decaffeinated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463,708 247,321 2401.20 Tobacco, partly or wholly stemmed/stripped . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158,578 134,602 

8409.99 Parts for use with compression-ignition internal combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226,140 192,246 8527.21 Radiobroadcast receivers for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,057 186,380 7224.90 Semifinished products of alloy steel, other than stainless, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,239 112,001 4407.10 Coniferous wood sawn or chipped lengthwise, sliced or peeled, of thickness exceeding 6mm . . . . . . . . . . . . . . . . . . . . . . . . . 153,635 133,072 4409.10 Wood, including strips and friezes, continuously shaped along any of its edges or faces, coniferous . . . . . . . . . . . . . . . . . . . 74,238 77,500 1602.50 Other prepared or preserved meat, meat offal, or blood, of bovine animals, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,824 91,638 

2909.19 Acyclic ethers, excluding diethyl ether, and their halogenated, sulfonated, nitrated, or nitrosated derivatives . . . . . . . . . . . . . 70,806 134,102 8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,053 110,317 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131,048 113,142 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,551 44,446 7601.20 Unwrought aluminum alloys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,234 99,037 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,973,924 7,787,128 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,298,796 5,944,443 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,272,720 13,731,571 

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

Antidumping cases active (114 total) in 2001, by USITC investigation numbers

(Affirmative = A; Negative = N)

USITCinvestigationnumber Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

USITCfinal

731-TA-865 Stainless steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . Italy 12/29/99 A A A A 731-TA-866 Stainless steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . Malaysia 12/29/99 A A A A 731-TA-867 Stainless steel butt-weld pipe fittings . . . . . . . . . . . . . . . . . . . Philippines 12/29/99 A A A A 731-TA-868 Steel wire rope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 03/01/00 A A A N 731-TA-869 Steel wire rope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . India 03/01/00 A A A N 731-TA-870 Steel wire rope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Malaysia 03/01/00 A N N (3) 

731-TA-873 Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . Belarus 06/28/00 A A A A 731-TA-874 Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . China 06/28/00 A A A A 731-TA-875 Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . Indonesia 06/28/00 A A A A 731-TA-877 Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . Korea 06/28/00 A A A A 731-TA-878 Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . Latvia 06/28/00 A A A A 731-TA-879 Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . Moldova 06/28/00 A A A A 731-TA-880 Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . Poland 06/28/00 A A A A 731-TA-882 Steel concrete reinforcing bars . . . . . . . . . . . . . . . . . . . . . . . Ukraine 06/28/00 A A A A 731-TA-888 Stainless steel angle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Japan 08/18/00 A A A A 731-TA-889 Stainless steel angle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Korea 08/18/00 A A A A 731-TA-890 Stainless steel angle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Spain 08/18/00 A A A A 731-TA-891 Foundry coke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 09/20/00 A A A A 731-TA-892 Honey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Argentina 09/29/00 A A A A 731-TA-893 Honey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 09/29/00 A A A A 731-TA-894 Ammonium nitrate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ukraine 10/13/00 A A A A 731-TA-895 Pure magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 10/17/00 A A A A 731-TA-896 Pure magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Israel 10/17/00 A A A N 731-TA-897 Pure magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Russia 10/17/00 A N N (3) 731-TA-898 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . Argentina 11/13/00 A A A A 731-TA-899 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . China 11/13/00 A A A A 731-TA-900 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . India 11/13/00 A A A A 731-TA-901 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . Indonesia 11/13/00 A A A A 731-TA-902 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . Kazakhstan 11/13/00 A A A A 731-TA-903 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . Netherlands 11/13/00 A A A A 731-TA-904 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . Romania 11/13/00 A A A A 731-TA-905 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . South Africa 11/13/00 A A A A 731-TA-906 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . Taiwan 11/13/00 A A A A 731-TA-907 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . Thailand 11/13/00 A A A A 731-TA-908 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . . . . . Ukraine 11/13/00 A A A A 731-TA-909 Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . France 12/07/00 A A A (4) 

731-TA-910 Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Germany 12/07/00 A N N (3) 

731-TA-911 Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Netherlands 12/07/00 A N N (3) 731-TA-912 Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . United Kingdom 12/07/00 A A N (3) 

See footnotes at end of table.
Table A-25—Continued

Antidumping cases active in 2001, by USITC investigation numbers

(Affirmative = A; Negative = N)

USITCinvestigationnumber Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

USITCfinal

731-TA-913 Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . France 12/28/00

A

A (

4) (

4) 

731-TA-914 Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Germany 12/28/00 A A (4) (4) 

731-TA-915 Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Italy 12/28/00 A A (4) (4) 731-TA-916 Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Korea 12/28/00 A A (4) (4) 731-TA-917 Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taiwan 12/28/00 A N (4) (4) 731-TA-918 Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . United Kingdom 12/28/00 A A (4) (4) 731-TA-919 Welded large diameter line pipe . . . . . . . . . . . . . . . . . . . . . Japan 01/10/01 A A A A 731-TA-920 Welded large diameter line pipe . . . . . . . . . . . . . . . . . . . . . Mexico 01/10/01 A A (4) (4) 731-TA-921 Folding gift boxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 02/20/01 A A A A 731-TA-922 Automotive replacement glass windshields . . . . . . . . . . . . . . China 02/28/01 A A (4) (4) 731-TA-923 Oleoresin paprika . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . India 03/06/01 N (3) (3) (3) 

731-TA-924 Mussels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 03/12/01 A A (4) (4) 

731-TA-925 Greenhouse tomatoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 03/28/01 A A (4) (4) 731-TA-926 Spring table grapes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chile 03/30/01 N (3) (3) (3) 

731-TA-927 Spring table grapes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mexico 03/30/01 N (3) (3) (3) 731-TA-928 Softwood lumber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 04/02/01 A A (4) (4) 

731-TA-929 Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . India 04/06/01 A A (4) (4) 731-TA-930 Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kazakhstan 04/06/01 A A (4) (4) 731-TA-931 Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Venezuela 04/06/01 A A (4) (4) 731-TA-932 Folding metal tables and chairs . . . . . . . . . . . . . . . . . . . . . . . China 04/27/01 A A (4) (4) 731-TA-933 Polyethylene terephthalate film . . . . . . . . . . . . . . . . . . . . . . . India 05/17/01 A A (4) (4) 731-TA-934 Polyethylene terephthalate film . . . . . . . . . . . . . . . . . . . . . . . Taiwan 05/17/01 A A (4) (4) 731-TA-935 Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 05/23/01 A A (4) (4) 731-TA-936 Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Germany 05/23/01 A A (4) (4) 731-TA-937 Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Italy 05/23/01 A N (4) (4) 731-TA-938 Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 05/23/01 A A (4) (4) 731-TA-939 Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Russia 05/23/01 A A (4) (4) 731-TA-940 Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa 05/23/01 A A (4) (4) 731-TA-941 Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Spain 05/23/01 A N (4) (4) 731-TA-942 Structural steel beams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taiwan 05/23/01 A A (4) (4) 731-TA-943 Circular welded non-alloy steel pipe . . . . . . . . . . . . . . . . . . . China 05/24/01 A A (4) (4) 731-TA-944 Circular welded non-alloy steel pipe . . . . . . . . . . . . . . . . . . . Indonesia 05/24/01 N (3) (3) (3) 

731-TA-945 Circular welded non-alloy steel pipe . . . . . . . . . . . . . . . . . . . Malaysia 05/24/01 N (3) (3) (3) 731-TA-946 Circular welded non-alloy steel pipe . . . . . . . . . . . . . . . . . . . Romania 05/24/01 N (3) (3) (3) 731-TA-947 Circular welded non-alloy steel pipe . . . . . . . . . . . . . . . . . . . South Africa 05/24/01 N (3) (3) (3) 731-TA-948 Individually quick frozen red raspberries . . . . . . . . . . . . . . . Chile 05/31/01 A A (4) (4) 

731-TA-949 Gum arabic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . France 06/21/01 (5) (5) (5) (5) 

731-TA-950 Gum arabic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . United Kingdom 06/21/01 (5) (5) (5) (5) 731-TA-951 Blast furnace coke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 06/29/01 N (3) (3) (3) 731-TA-952 Blast furnace coke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Japan 06/29/01 N (3) (3) (3) 731-TA-953 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Brazil 08/31/01 A (4) (4) (4) 

See footnotes at end of table.
Table A-25—Continued

Antidumping cases active in 2001, by USITC investigation numbers

(Affirmative = A; Negative = N)

USITCinvestigationnumber Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

USITCfinal

731-TA-954 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Canada 08/31/01

A (

4) (

4) (

4) 

731-TA-955 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Egypt 08/31/01 (6) (3) (3) (3) 

731-TA-956 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Germany 08/31/01 A (4) (4) (4) 

731-TA-957 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Indonesia 08/31/01 A (4) (4) (4) 731-TA-958 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Mexico 08/31/01 A (4) (4) (4) 731-TA-959 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Moldova 08/31/01 A (4) (4) (4) 731-TA-960 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . South Africa 08/31/01 (6) (3) (3) (3) 

731-TA-961 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Trinidad & Tobago 08/31/01 A (4) (4) (4) 

731-TA-962 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Ukraine 08/31/01 A (4) (4) (4) 731-TA-963 Carbon and certain alloy steel wire rod . . . . . . . . . . . . . . . . Venezuela 08/31/01 (6) (3) (3) (3) 

731-TA-964 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Argentina 09/28/01 A (4) (4) (4) 

731-TA-965 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Australia 09/28/01 A (4) (4) (4) 731-TA-966 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Belgium 09/28/01 A (4) (4) (4) 731-TA-967 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Brazil 09/28/01 A (4) (4) (4) 731-TA-968 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . China 09/28/01 A (4) (4) (4) 731-TA-969 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . France 09/28/01 A (4) (4) (4) 731-TA-970 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Germany 09/28/01 A (4) (4) (4) 731-TA-971 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . India 09/28/01 A (4) (4) (4) 731-TA-972 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Japan 09/28/01 A (4) (4) (4) 731-TA-973 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Korea 09/28/01 A (4) (4) (4) 731-TA-974 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Netherlands 09/28/01 A (4) (4) (4) 731-TA-975 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . New Zealand 09/28/01 A (4) (4) (4) 731-TA-976 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Russia 09/28/01 A (4) (4) (4) 731-TA-977 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa 09/28/01 A (4) (4) (4) 731-TA-978 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Spain 09/28/01 A (4) (4) (4) 731-TA-979 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Sweden 09/28/01 A (4) (4) (4) 731-TA-980 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Taiwan 09/28/01 A (4) (4) (4) 731-TA-981 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Thailand 09/28/01 A (4) (4) (4) 731-TA-982 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Turkey 09/28/01 A (4) (4) (4) 731-TA-983 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . . . . . Venezuela 09/28/01 A (4) (4) (4) 731-TA-984 Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hungary 09/28/01 A (4) (4) (4) 731-TA-985 Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Portugal 09/28/01 A (4) (4) (4) 731-TA-986 Ferrovanadium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China 11/26/01 (4) (4) (4) (4) 731-TA-987 Ferrovanadium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . South Africa 11/26/01 (

4) (

4) (

4) (

4) 

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 taken 

the date of the USITC notification of Commerce is shown. 3 Not applicable. 4 Pending as of December 31, 2001. 5 The investigation was 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-29

Table A-26

Antidumping duty orders in effect (264 total) as of December 31, 2001

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:

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:

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:

Preserved mushrooms Dec. 2, 1998 ..........................................

Fresh Atlantic salmon July 30, 1998 ...........................................

China:

Honey Dec. 10, 2001 .......................................................

Hot-rolled carbon steel flat products Nov. 29, 2001 ...............................

Pure magnesium (granular) Nov. 19, 2001 ......................................

Foundry coke Sept. 17, 2001 .................................................

Steel concrete reinforcing bars Sept. 7, 2001 ....................................

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 ..........................................

Collated roofing nails Nov. 19, 1997 ...........................................

Carbon steel plate (suspended) Oct. 24, 1997 ...................................

Crawfish tail meat Sept. 15, 1997 .............................................

Persulfates July 7, 1997 ...................................................

Brake rotors Apr. 17, 1997 ..................................................

Melamine institutional dinnerware Feb. 25, 1997 .................................

Furfuryl alcohol June 21, 1995 ...............................................

Pure magnesium (ingot) May 12, 1995 .........................................

See footnotes at end of table.
A-30

Table A-26–Continued

Antidumping duty orders in effect as of December 31, 2001

Effective date of

Country and commodity original action

China–Continued

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:

Carbon steel plate Feb. 10, 2000 ............................................. Stainless steel sheet and strip July 27, 1999 ..................................... Stainless steel wire rod Jan. 28, 1994 .......................................... Corrosion-resistant carbon steel flat products Aug. 19, 1993 ........................

Ball bearings May 15, 1989 ................................................. Spherical plain bearings May 15, 1989 ........................................ Brass sheet and strip Mar. 6, 1987 ............................................ Industrial nitrocellulose Aug. 10, 1983 .......................................... Sorbitol Apr. 9, 1982 ......................................................

Anhydrous sodium metasilicate Jan. 7, 1981 ................................... Sugar June 13, 1979 .......................................................

Germany:

Stainless steel sheet and strip July 27, 1999 .....................................

Large newspaper printing presses Sept. 4, 1996 ................................. 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 ....................................................... India:

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 .....................................

See footnotes at end of table.
A-31

Table A-26–continued

Antidumping orders in effect as of December 31, 2001

Effective date of

Country and commodity original action

India—Continued

Stainless steel wire rod Dec. 1, 1993 .......................................... Sulfanilic acid Mar. 2, 1993 ................................................. Welded carbon steel pipe May 12, 1986 ....................................... Indonesia:

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 .......................................... Melamine institutional dinnerware Feb. 25, 1997 .................................

Iran:

Raw in-shell pistachios July 17, 1986 ..........................................

Italy:

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:

Welded large diameter line pipe Dec. 6, 2001 .................................. Stainless steel angle May 18, 2001 ............................................ Tin mill products Aug. 28, 2000 ............................................... Large diameter seamless pipe June 26, 2000 ....................................

Small diameter seamless pipe June 26, 2000 .................................... Structural steel beams June 19, 2000 .......................................... Carbon steel plate Feb. 10, 2000 ............................................. Stainless steel sheet and strip July 27, 1999 ..................................... Hot-rolled carbon steel flat products June 29, 1999 ............................... Stainless steel wire rod Sept. 15, 1998 .......................................... Gas turbo-compressor systems June 16, 1997 ....................................

Sodium azide (suspended) Jan. 7, 1997 ....................................... Large newspaper printing presses Sept. 4, 1996 ................................. 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:

Hot-rolled carbon steel flat products Nov. 21, 2001 ...............................

See footnotes at end of table.
A-32

Table A-26–Continued

Antidumping duty orders in effect as of December 31, 2001

Effective date of

Country and commodity original action

Korea:

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:

Large diameter seamless pipe Aug. 11, 2000 .................................... Stainless steel sheet and strip July 27, 1999 ..................................... Fresh tomatoes (suspended) Nov. 1, 1996 ......................................

Oil country tubular goods Aug. 11, 1995 ....................................... Carbon steel plate Aug. 19, 1993 ............................................. Circular welded non-alloy steel pipe Nov. 2, 1992 ............................... Gray portland cement and clinker Aug. 30, 1990 ................................. Porcelain-on-steel cooking ware Dec. 2, 1986 .................................. Moldova:

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 .............................................

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:

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:

Hot-rolled carbon steel flat products Sept. 19, 2001 ............................... Small diameter seamless pipe June 26, 2000 .................................... Stainless steel plate in coils May 21, 1999 .......................................

Carbon steel plate (suspended) Oct. 24, 1997 ...................................

See footnotes at end of table.
A-33

Table A-26–Continued

Antidumping duty orders in effect as of December 31, 2001

Effective date of

Country and commodity original action

Spain:

Stainless steel angle May 18, 2001 ............................................

Stainless steel wire rod Sept. 15, 1998 ..........................................

Stainless steel bar Mar. 2, 1995 ..............................................

Carbon steel plate Aug. 19, 1993 .............................................

Sweden:

Stainless steel wire rod Sept. 15, 1998 ..........................................

Carbon steel plate Aug. 19, 1993 .............................................

Taiwan:

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 ..........................................

Static random access memory semiconductors Apr. 16, 1998 ........................

Collated roofing nails Nov. 19, 1997 ...........................................

Melamine institutional dinnerware Feb. 25, 1997 .................................

Forged stainless steel flanges Feb. 9, 1994 .....................................

Helical spring lockwashers June 28, 1993 .......................................

Stainless steel butt-weld pipe fittings June 16, 1993 ................................

Welded ASTM A-312 stainless steel pipe Dec. 30, 1992 ............................

Circular welded non-alloy steel pipe Nov. 2, 1992 ...............................

Light-walled rectangular tube Mar. 27, 1989 .....................................

Top-of-the-stove stainless steel cooking ware Jan. 20, 1987 .........................

Carbon steel butt-weld pipe fittings Dec. 17, 1986 ................................

Porcelain-on-steel cooking ware Dec. 2, 1986 ..................................

Small diameter carbon steel pipe May 7, 1984 ..................................

Carbon steel plate June 13, 1979 .............................................

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 .......................................

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:

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, 19941 ..............................................

Solid urea July 14, 1987 ...................................................

United Kingdom:

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 ...................................................

1 Original suspension terminated and order issued Sept. 17, 2001.

Source: Compiled from data maintained by the Commission.
Table A-27

Countervailing duty cases active (25 total) in 2001, by USITC investigation numbers

(Affirmative = A; Negative = N)

USITCinvestigationnumber Product

Countyof origin

Date ofinstitution

USITCprelim

ITA1prelim

ITAfinal

USITCfinal

Dfi

701-TA-402 Honey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Argentina 09/29/00

A

A

A

A 1

701-TA-403 Pure magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Israel 10/17/00 A A A N 1701-TA-404 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . Argentina 11/13/00 A A A A 0701-TA-405 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . India 11/13/00 A A A A 1701-TA-406 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . Indonesia 11/13/00 A A A A 1701-TA-407 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . South Africa 11/13/00 A A A A 1701-TA-408 Hot-rolled carbon steel flat products . . . . . . . . . . . . . . . Thailand 11/13/00 A A A A 1701-TA-409 Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . France 12/07/00 A A A (3) (3

701-TA-410 Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . Germany 12/07/00 A A A (3) (3701-TA-411 Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . Netherlands 12/07/00 A A A (3) (3701-TA-412 Low enriched uranium . . . . . . . . . . . . . . . . . . . . . . . . . . United Kingdom 12/07/00 A A A (3) (3701-TA-413 Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Italy 12/28/00 A A (3) (3) (3701-TA-414 Softwood lumber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada 04/02/01 A A (3) (3) (3701-TA-415 Polyethylene terephthalate film . . . . . . . . . . . . . . . . . . . India 05/17/01 A A (3) (3) (3701-TA-416 Individually quick frozen red raspberries . . . . . . . . . . . Chile 05/31/01 A N (3) (3) (3701-TA-417 Carbon and certain alloy steel wire rod . . . . . . . . . . . . Brazil 08/31/01 A (3) (3) (3) (3701-TA-418 Carbon and certain alloy steel wire rod . . . . . . . . . . . . Canada 08/31/01 A (3) (3) (3) (3701-TA-419 Carbon and certain alloy steel wire rod . . . . . . . . . . . . Germany 08/31/01 A (3) (3) (3) (3701-TA-420 Carbon and certain alloy steel wire rod . . . . . . . . . . . . Trinidad & Tobago 08/31/01 A (3) (3) (3) (3701-TA-421 Carbon and certain alloy steel wire rod . . . . . . . . . . . . Turkey 08/31/01 A (3) (3) (3) (3701-TA-422 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . Argentina 09/28/01 A (3) (3) (3) (3701-TA-423 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . Brazil 09/28/01 A (3) (3) (3) (3701-TA-424 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . France 09/28/01 A (3) (3) (3) (3701-TA-425 Cold-rolled steel products . . . . . . . . . . . . . . . . . . . . . . . Korea 09/28/01 A (3) (3) (3) (3701-TA-426 Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hungary 09/28/01 A (3) (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 take

USITC, the date of the USITC notification of Commerce is shown. 3 Pending as of December 31, 2001.

Source: Compiled from data maintained by the Commission.
A-35

Table A-28

Countervailing duty orders in effect (49 total) as of December 31, 2001

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:

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:

Alloy magnesium Aug. 31, 1992 ..............................................

Pure magnesium Aug. 31, 1992 ...............................................

Steel rails Sept. 22, 1989 ....................................................

European Union:

Sugar July 31, 1978 .......................................................

France:

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:

Carbon steel plate Aug. 17, 1993 .............................................

Corrosion-resistant carbon steel flat products Aug. 17, 1993 ........................

India:

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:

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:

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 .............................................

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 .............................................

See footnotes at end of table.
A-36

Table A-28—Continued

Countervailing duty orders in effect as of December 31, 2001

Effective date of

Country and commodity original action

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:

Carbon steel plate Aug. 17, 1993 .............................................

Source: Compiled from data maintained by the Commission.
A-37

Table A-29

Reviews of existing antidumping duty orders and suspension agreements

completed (29 total) in 2001, by date of completion

USITC investigation number ProductCountry of

origin

Completion

date Action

731-TA-624 Helical spring lock washers . . . . . . . . . . . China 01/25/01 Continued

731-TA-625 Helical spring lock washers . . . . . . . . . . . Taiwan 01/25/01 Continued

731-TA-671 Silicomanganese . . . . . . . . . . . . . . . . . . . Brazil 01/25/01 Continued

731-TA-672 Silicomanganese . . . . . . . . . . . . . . . . . . . China 01/25/01 Continued

731-TA-673 Silicomanganese . . . . . . . . . . . . . . . . . . . Ukraine 01/25/01 Continued

731-TA-470 Silicon metal . . . . . . . . . . . . . . . . . . . . . . Argentina 01/25/01 Revoked

731-TA-471 Silicon metal . . . . . . . . . . . . . . . . . . . . . . Brazil 01/25/01 Continued

731-TA-472 Silicon metal . . . . . . . . . . . . . . . . . . . . . . China 01/25/01 Continued

731-TA-683 Fresh garlic . . . . . . . . . . . . . . . . . . . . . . . China 02/21/01 Continued

731-TA-652 Aramid fiber . . . . . . . . . . . . . . . . . . . . . . Netherlands 02/23/01 Revoked

731-TA-659 Grain-oriented silicon electrical steel . . . Italy 02/23/01 Continued

731-TA-660 Grain-oriented silicon electrical steel . . . Japan 02/23/01 Continued

731-TA-678 Stainless steel bar . . . . . . . . . . . . . . . . . . Brazil 03/26/01 Continued

731-TA-679 Stainless steel bar . . . . . . . . . . . . . . . . . . India 03/26/01 Continued

731-TA-681 Stainless steel bar . . . . . . . . . . . . . . . . . . Japan 03/26/01 Continued

731-TA-682 Stainless steel bar . . . . . . . . . . . . . . . . . . Spain 03/26/01 Continued

731-TA-703 Furfuryl alcohol . . . . . . . . . . . . . . . . . . . . China 04/20/01 Continued

731-TA-705 Furfuryl alcohol . . . . . . . . . . . . . . . . . . . . Thailand 04/20/01 Continued

731-TA-706 Canned pineapple . . . . . . . . . . . . . . . . . Thailand 05/08/01 Continued

731-TA-702 Ferrovanadium and nitrided vanadium . . Russia 05/15/01 Continued

731-TA-707 Seamless pipe . . . . . . . . . . . . . . . . . . . . . Argentina 06/26/01 Continued

731-TA-708 Seamless pipe . . . . . . . . . . . . . . . . . . . . . Brazil 06/26/01 Continued

731-TA-709 Seamless pipe . . . . . . . . . . . . . . . . . . . . . Germany 06/26/01 Continued

731-TA-710 Seamless pipe . . . . . . . . . . . . . . . . . . . . . Italy 06/26/01 Revoked

731-TA-711 Oil country tubular goods . . . . . . . . . . . . Argentina 06/28/01 Continued

731-TA-713 Oil country tubular goods . . . . . . . . . . . . Italy 06/28/01 Continued

731-TA-714 Oil country tubular goods . . . . . . . . . . . . Japan 06/28/01 Continued

731-TA-715 Oil country tubular goods . . . . . . . . . . . . Korea 06/28/01 Continued

731-TA-716 Oil country tubular goods . . . . . . . . . . . . Mexico 06/28/01 Continued

Source: Compiled from data maintained by the Commission.
A-38

Table A-30

Reviews of existing countervailing duty orders and suspension agreements

completed (3 total) in 2001, by date of completion

USITC investigation number ProductCountry of

origin

Completion

date Action

701-TA-355 Grain-oriented silicon electrical steel . . . Italy 02/23/01 Continued

701-TA-362 Seamless pipe . . . . . . . . . . . . . . . . . . . . . Italy 06/26/01 Revoked

701-TA-364 Oil country tubular goods . . . . . . . . . . . . Italy 06/28/01 Continued

Source: Compiled from data maintained by the Commission.
A-39

Table A-31

Section 337 investigations and related proceedings completed by the U.S.

International Trade Commission during 2001 and those pending on

Dec. 31, 20011

Status of

Investigation Article Country2

Commission

determination

Completed:

337-TA-395 Certain EPROM, EEPROM,

Flash Memory, and Flash

Microcontrol Semiconductor

Devices, and Products

Containing Same

Taiwan, Japan Remand terminated

based on finding of

no violation.

337-TA-429 Certain Bar Clamps, Bar

Clamp Pads, and Related

Packaging, Display, and

Other Materials

Germany Terminated based on

a settlement

agreement.

337-TA-430 Certain Integrated Repeaters

and Products Containing

Same2

Taiwan Issued limited

exclusion order.

337-TA-434 Certain Magnetic Resonance

Injection Systems and

Components Thereof

Japan Terminated based on

a finding of no

violation.

337-TA-435 Certain Integrated Repeaters,

Switches, Transceivers, and

Products Containing Same2

Taiwan Issued limited

exclusion order.

337-TA-436 Certain WAP-Compatible

Wireless Japan

Communication Devices,

Components Thereof, and

Products Containing Same

Japan Terminated based on

withdrawal of

complaint.

337-TA-438 Certain Plastic Molding

Machines With Control

Systems Having

Programmable Operator

Interfaces Incorporating

General Purpose

Computers, and

Components Thereof

Japan Terminated based on

a settlement

agreement.

337-TA-440 Certain 4-Androstenediol People’s Republic of

China

Issued limited

exclusion order.

337-TA-441 Certain Field Programmable

Gate Arrays and Products

Containing Same

Philippines Terminated based on

a settlement

agreement.

337-TA-442 Certain Closet Flange Rings Taiwan Terminated based on

a finding of no

violation.

337-TA-447 Certain Aerospace Rivets and

Products Containing Same

France Terminated based on

a consent order.

337-TA-451 Certain CMOS Active Pixel

Image Sensors and

Products Containing Same

No foreign respondent Terminated based on

a settlement

agreement.

337-TA-453 Certain Programmable Logic

Devices and Products

Containing Same

No foreign respondent Terminated based on

a settlement

agreement.

Pending:

337-TA-114 Certain Miniature Plug-In

Blade Fuses

Taiwan Modification

proceeding

pending before the

Commission.

See footnotes at end of table.
A-40

Table A-31—Continued

Section 337 investigations and related proceedings completed by the U.S.

International Trade Commission during 2001 and those pending on

Dec. 31, 2001

Status of

Investigation Article Country2

Commission

determination

Pending:

337-TA-406 Certain Lens-Fitted Film

Packages

Hong Kong Consolidated

enforcement and

advisory opinion

proceeding pending

before the ALJ.

337-TA-432 Certain Semiconductor Chips

with Minimized Chip

Package Size and Products

Containing Same

Japan Pending before the

Commission.

337-TA-439 Certain HSP Modems,

Software and Hardware

Components Thereof, and

Products Containing Same

Israel Pending before the

Commission.

337-TA-443 Certain Flooring Products Belgium, Germany,

France

Pending before the

Commission.

337-TA-444 Certain Semiconductor Light

Emitting Devices,

Components

Thereof, and Products

Containing Same

Japan Pending before the

ALJ.

337-TA-445 Certain Plasma Display Panels

and Products Containing

Same

Japan Pending before the

Commission.

337-TA-446 Certain Ink Jet Print Cartridges

and Components Thereof

Taiwan Pending before the

ALJ.

337-TA-448 Certain Oscillating Sprinklers,

Sprinkler Components and

Nozzles

Taiwan, Israel,

Germany

Pending before the

Commission.

337-TA-449 Certain Abrasive Products

Made Using a Process for

Making Powder Preforms

and Products Containing

Same

Taiwan Pending before the

ALJ.

337-TA-450 Certain Integrated Circuits,

Processes for Making

Same, and Products

Containing Same

Taiwan Pending before the

ALJ.

337-TA-452 Certain Personal Watercraft

and Components Thereof

Canada Pending before the

ALJ.

337-TA-454 Certain Set-Top Boxes and

Components Thereof

Japan Pending before the

ALJ.

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 Pending before the

ALJ.

337-TA-456 Certain Gel-Filled Wrist Rests

and Products Containing

Same

Taiwan Pending before the

ALJ.

See footnotes at end of table.
A-41

Table A-31—Continued

Section 337 investigations and related proceedings completed by the U.S.

International Trade Commission during 2001 and those pending on

Dec. 31, 2001

Status of

Investigation Article Country2

Commission

determination

Pending:

337-TA-457 Certain Polyethylene

Terephthalate Yarn and

Products Containing Same

Korea Pending before the

ALJ.

337-TA-458 Certain Digital Display

Receivers and Products

Containing Same

Including Digital Controllers

Canada Pending before the

ALJ.

337-TA-459 Certain Garage Door

Operators Including

Components Thereof

Taiwan, Hong Kong,

Canada

Pending before the

ALJ.

337-TA-460 Certain Sortation Systems,

Parts Thereof, and Products

Containing Same

Netherlands Pending before the

ALJ.

337-TA-461 Certain Clay Target Throwing

Machines and Component

Parts Thereof

Sweden Pending before the

ALJ.

337-TA-462 Certain Plastic Molding

Machines With Control

Systems Having

Programmable Operator

Interface Incorporating

General Purpose

Computers, and

Components Thereof

Germany, Italy,

France

Pending before the

ALJ.

337-TA-463 Certain Power-Saving

Integrated Circuits and

Products Containing Same2

No foreign respondent Pending before the

ALJ.

337-TA-464 Certain Video Cassette

Devices and

Television/Video Cassette

Device Combinations and

Methods of Using Same

Japan Pending before the

ALJ.

337-TA-465 Certain Semiconductor Timing

Signal Generator Devices,

Components Thereof, and

Products Containing

Same4

No foreign respondent Pending before the

ALJ.

337-TA-466 Certain Organizer Racks and

Products Containing Same

Canada Pending before the

ALJ.

1 This Table shows that there were 52 Section 337 investigations and related proceedings

completed by the USITC during 2001 and pending on Dec. 31, 2001.

2 This column lists the countries of the foreign respondents named in the investigation.

3 Investigation No. 430 was consolidated with Investigation No. 435 by the ALJ. Only one

limited exclusion order was issued in the consolidated investigation.

4 Investigation No. 463 was consolidated with Investigation No. 465 by the ALJ.

Source: U.S. International Trade Commission, Office of Unfair Import Investigations.
A-42

Table A-32

Outstanding Section 337 exclusion orders as of Dec. 31, 20011

Investigation

No. Article Country2 Date patentexpires3

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

Korea Nonpatent

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-195 Certain Cloisonne Jewelry Taiwan Nonpatent

337-TA-197 Certain Compound Action

Metal Cutting Snips

and Components

Thereof

Taiwan Nonpatent

337-TA-228 Certain Fans With

Brushless DC Motors

Japan Sept. 30, 20024

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-242 Certain Dynamic Random

Access Memories,

Components Thereof,

and Products

Containing Same

Japan, Korea Aug. 6, 2002

Sept. 24, 2002

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

See footnotes at end of table.
A-43

Table A-32—Continued

Outstanding Section 337 exclusion orders as of Dec. 31, 20011

Investigation

No. Article Country2 Date patentexpires3

337-TA-276 Certain Erasable Programmable

Read Only Memories,

Components Thereof, Products

Containing Such Memories and

Processes for Making Such

Memories

Korea June 17, 20023

June 7, 20054

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-293 Certain Crystalline Cefadroxil

Monohydrate

Italy, Spain,

Switzerland

Mar. 12, 2002

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, 20054

337-TA-314 Certain Battery-Powered Ride-On

Toy Vehicles and Components

Thereof

Taiwan Jan. 31, 2003

Dec. 6, 20034

Jan. 27, 2004

Sept. 22, 20064

337-TA-319 Certain Automotive Fuel Caps and

Radiator Caps and Related

Packaging and Promotional

Materials

Taiwan Nonpatent

June 22, 20064

July 22, 20064

337-TA-320 Certain Rotary Printing Apparatus

Using Heated France, Ink

Composition, Components

Thereof, and Systems

Containing Said Apparatus

and Components

Spain Apr. 30, 20044

337-TA-321 Certain Soft Drinks and Their

Containers

Colombia Nonpatent

337-TA-324 Certain Acid-Washed Denim

Garments and Accessories

Hong Kong, Taiwan,

Brazil, Chile

Oct. 22, 20063

337-TA-333 Certain Woodworking

Accessories

Taiwan Mar. 2, 20083

337-TA-334 Certain Condensers, Parts Thereof

and Products Containing Same,

Including Air Conditioners for

Automobiles

Japan Mar. 12, 2008

337-TA-360 Certain Devices For Connecting

ComputersVia 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

People’s Republic

of China,

Hong Kong,

Taiwan

May 20, 20053

337-TA-374 Certain Electrical Connectors and

Products Containing Same

Taiwan Jan. 22, 2008

See footnotes at end of table.
A-44

Table A-32—Continued

Outstanding Section 337 exclusion orders as of Dec. 31, 2001

Investigation

No. Article Country1 Date patentexpires3

337-TA-376 Certain Variable Speed Wind

Turbines and Components

Thereof

Germany Feb. 1, 20114

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

People’s Republic of

China, Taiwan

Aug. 4, 2006

337-TA-406 Certain Lens-Fitted Film Packages People’s Republic of

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

People’s Republic

of China, Taiwan

July 22, 2003

July 22, 2003

Feb. 7, 2006

July 25, 2006

June 7, 2015

337-TA-416 Certain Compact Multipurpose

Tools

People’s Republic of

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, People’s

Republic of China

May 31, 2008

337-TA-424 Certain Cigarettes and Packaging

Thereof

No foreign

respondents

Nonpatent

337-TA430/435Certain Integrated Repeaters,

Switches, Transceivers, and

Products Containing Same

Taiwan April 21, 2015

April 13, 2016

337-TA-440 Certain 4-Androstenediol People’s Republic of

China

July 13, 2018

See footnotes at end of table.
A-45

Table A-32—Continued

Outstanding Section 337 exclusion orders as of Dec. 31, 2001

Investigation

No. Article Country2 Date patentexpires3

1 This table shows that there were 48 exclusion orders in effect as of Dec. 31, 2001.

2 This column lists the countries of the foreign respondents named in the investigation.

3 Multiple dates indicate the expiration dates of separate patents within the investigation.

4 Patent term extended pursuant to 35 U.S.C. 154(c).

Source: U.S. International Trade Commission, Office of Unfair Import Investigations.
Table A-33

U.S. imports for consumption of leading GSP duty-free imports 2001

(1,000 dollars)

I

HTSRank HTS8 Description

Total U.S. importsfor consumption GSP eligible

1 2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . . . . . . . . 30,083,076 2,919,443 2 7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps . . . . . . . . 3,660,561 1,496,157 3 2905.11.20 Methanol (methyl alcohol), n.e.s.o.i. ........................................................ 795,078 658,149 

4 2909.19.14 Methyl tertiary-butyl ether (MTBE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,369,451 310,990 

5 7606.12.30 Aluminum alloy plates, sheets, and strip, of a thickness exceeding 0.2 mm, rectangular (including square),

not clad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 836,194 160,315 

6 8708.70.45 Road wheels for motor vehicles ........................................................... 909,605 158,615 

7 7113.19.29 Gold necklaces and neck chains, other than rope or mixed link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 771,350 197,811 8 6802.93.00 Monumental or building stone & arts. thereof, of granite, further worked than simply cut/sawn, nesoi . . . . . 421,799 135,459 9 4823.59.40 Paper and paperboard of a kind used for writing, printing, or other graphic purposes, n.e.s.o.i. ......... 538,219 129,450 

10 7323.93.00 Stainless steel table, kitchen or other household articles and parts thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . 602,427 129,585 11 7615.19.30 Aluminum, cooking and kitchen ware, other than cast, enameled or glazed or containing nonstick interior

finishes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282,785 126,789 

12 8708.99.80 Parts and accessories n.e.s.o.i., of motor vehicles, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,858,834 135,456 

13 4418.20.80 Doors and their frames and thresholds, of wood, other than French doors . . . . . . . . . . . . . . . . . . . . . . . . . . 415,860 148,934 14 7403.11.00 Cathodes and sections of cathodes, of refined copper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,501,356 851,379 15 8544.30.00 Ignition wiring sets, other wiring sets of a kind used in vehicles, aircraft or ships . . . . . . . . . . . . . . . . . . . . . . 4,684,352 520,443 16 1701.11.10 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412,984 331,020 17 8414.51.00 Table, floor, wall, window, ceiling or roof fans, with a self-contained electric motor of an output not

exceeding 125 W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850,356 164,786 

18 8708.39.50 Pts. & access. of mtr. vehicles of 8701, nesoi, and 8702-8705, brakes and servo-brakes & pts thereof

(o/than mounted brake linings) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,804,527 112,925 

19 8708.99.67 Parts n.e.s.o.i. for power trains, for tractors and motor vehicles, including special purpose vehicles . . . . . . . 2,051,770 145,257 20 7901.12.50 Zinc (o/than alloy), unwrought, o/than casting-grade zinc, containing at least 97.5% but less than 99.99%

by wt. of zinc 267,701 100,787 

Total, above items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,118,287 8,933,750 

Total, all other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,072,609,234 15,827,639 Total, all GSP items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,128,727,521 24,761,388 

Note.–Calculations based on unrounded data. Figures do not include virgin Island imports. The abbreviation, “n.e.s.o.i.” stands for “not elsewhere specified or incSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-34

U.S. imports for consumption and imports eligible for GSP treatment, by import categories under the Harmonized Schedule, 2001

(Million dollars)

Imports o

HTSSection Description

Total U.S.

Imports for

Consumption GSP eligible 

I Live animals; animal products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,508 67 II Vegetable products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,677 912 III Animal and vegetable fats, oils, and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,177 39 IV Prepared foodstuffs; beverages, spirits; tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,510 1,650 V Mineral products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113,676 3,128 VI Chemical products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,187 2,274 VII Plastics and rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,262 1,494 VIII Raw hides and skins, leather, furskins; saddlery; handbags . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,555 580 IX Wood; charcoal; cork ; straw and other plaiting materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,476 949 X Wood pulp; paper and paperboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,172 397 XI Textiles and textile articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,391 311 XII Footwear, headgear, umbrellas; artificial flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,951 66 XIII Stone, plaster, cement, asbestos, ceramic and glass articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,419 857 XIV Pearls, precious or semi-precious stones; imitation jewellery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,038 2,219 XV Base metals and articles of base metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,741 2,916 XVI Machinery and appliances; electrical equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313,673 4,618 XVII Vehicles, aircraft, vessels, transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184,415 1,056 XVIII Optical, photographic, medical, and musical instruments ; clocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,834 705 XIX Arms and ammunition; parts and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850 43 XX Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,222 480 XXI Works of art, collectors’ pieces and antiques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,451 0 XXII Special classification provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,544 0 

Total, above items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,128,728 24,761 

Note.–Calculations based on unrounded data. Figures do not include Virgin Island imports.Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-35

U.S. imports for consumption of leading imports under CBERA, 1999-2001

(1,000 dollars)

HTS No. Description 1999 2000 6109.10.00 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 26,813 6203.42.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, not containing 15 percent

or more down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 34,445 

6110.20.20 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of cotton, n.e.s.o.i. . . . . . . . . . . . . . . . (1) 10,873 6107.11.00 Men’s or boys’ underpants and briefs, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 8,482 6204.62.40 Women’s or girls’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . (1) 12,261 2905.11.20 Methanol (methyl alcohol), n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,456 222,229 2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more .......................... (1) (1) 

6203.43.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of synthetic fibers, n.e.s.o.i. ................... (1) 9,462 

6212.10.90 Brassieres, not containing lace, net, or embroidery, not 70 percent or more silk, whether or not knitted or

crocheted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392 6,603 

2402.10.80 Cigars, cheroots and cigarillos, each valued 23 cents or over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231,678 223,464 

6109.90.10 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of man-made fibers . . . . . . . . . . . . . . . . . . . . . . . . . (1) 7,595 

6108.21.00 Women’s or girls’ briefs and panties, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 3,436 7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps . . . . . . . . . . . . . . . . . . . . 173,217 159,702 

6105.10.00 Men’s or boys’ shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 4,040 

0804.30.40 Pineapples, fresh or dried, not reduced in size, in crates or other packages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,092 113,889 1701.11.10 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,758 134,009 0807.19.20 Cantaloupes, fresh, not entered Aug. 1-Sept. 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,027 97,547 6110.30.30 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of man-made fibers,

n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 2,430 

6204.63.35 Women’s or girls’ trousers, breeches, and shorts, not knitted or crocheted, of synthetic fibers, n.e.s.o.i. . . . . . . . . . . . . . . . . . (1) 2,318 6104.62.20 Women’s or girls’ trousers, breeches, and shorts, knitted or crocheted, of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 2,356 2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. ............................ (1) (1) 

2710.00.05 Distillate and residual fuel oils (including blends) derived from bituminous minerals, testing under 25

degrees A.P.I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) (1) 

7213.91.30 Bars and rods, hot-rolled, not tempered or treated, of iron or nonalloy steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,229 63,782 

8536.20.00 Automatic circuit breakers, for a voltage not exceeding 1,000 volts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,099 74,016 6210.10.50 Other nonwoven disposable apparel designed for use in hospitals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,249 55,844 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,022,198 1,275,597 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,615,006 1,518,578 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,637,204 2,794,174 

1 Not applicable.

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included”.

Source: Compiled from official statistics of the U.S. Department of Commerce.
A-49

Table A-36

U.S. imports for consumption under CBERA provisions, by source,

1997-2001

(1,000 dollars)

Rank Source 1997 1998 1999 2000 2001

1 Dominican Republic . . . . 1,136,523 1,294,533 820,270 852,294 2,363,324

2 Honduras . . . . . . . . . . . . 263,814 236,073 180,152 252,149 1,670,844

3 Costa Rica . . . . . . . . . . . . 746,470 756,579 683,017 617,142 1,011,454

4 El Salvador . . . . . . . . . . . 81,799 50,206 59,051 71,565 1,008,274

5 Trinidad and Tobago . . . 226,244 186,219 217,857 329,471 753,448

6 Guatemala . . . . . . . . . . . 270,268 268,869 285,349 264,630 744,157

7 Jamaica . . . . . . . . . . . . . 74,515 102,178 89,593 89,459 195,207

8 Haiti . . . . . . . . . . . . . . . . 31,194 28,167 21,914 25,160 158,698

9 Nicaragua . . . . . . . . . . . 135,362 72,701 50,556 57,555 147,887

10 Bahamas . . . . . . . . . . . . . 25,132 34,914 56,018 74,451 75,811

11 Belize . . . . . . . . . . . . . . . 34,710 19,706 23,057 32,360 48,519

12 Panama . . . . . . . . . . . . . 81,064 77,453 45,962 42,639 42,254

13 St Kitts-Nevis . . . . . . . . . . 24,636 25,428 25,617 27,613 29,490

14 Guyana . . . . . . . . . . . . . . 28,512 24,617 14,706 17,143 23,769

15 Barbados . . . . . . . . . . . . 24,983 20,392 24,632 10,441 12,002

16 Grenada . . . . . . . . . . . . . 4,071 8,242 11,486 16,702 7,265

17 St. Lucia . . . . . . . . . . . . . 5,263 7,802 9,249 7,471 7,225

18 Netherlands Antilles . . . . 3,862 2,775 1,612 3,624 6,043

19 St Vincent and

Grenadines . . . . . . . . 2,373 3,532 7,195 1,947 2,223

20 Antigua . . . . . . . . . . . . . . 522 214 22 4 152

21 Dominica . . . . . . . . . . . . . 1,557 1,858 9,497 196 80

22 Aruba . . . . . . . . . . . . . . . 166 1,779 19 128 22

23 British Virgin Islands . . . . 262 333 364 31 21

24 Montserrat . . . . . . . . . . . 4,679 (1

) 6(1) (1)

Total . . . . . . . . . . . . . . 3,207,981 3,224,570 2,637,204 2,794,174 8,308,171

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-37

U.S. imports for consumption under ATPA provisions, by sources,

1999-2001

(1,000 dollars)

Rank Source 1999 2000 2001

1 Colombia . . . . . . . . . . . . . . . . . . . . . . . 797,305 826,559 717,966

2 Peru . . . . . . . . . . . . . . . . . . . . . . . . . . . 631,180 846,014 686,341

3 Ecuador . . . . . . . . . . . . . . . . . . . . . . . . 260,301 247,595 216,300

4 Bolivia . . . . . . . . . . . . . . . . . . . . . . . . . . 61,492 61,464 53,999

Total . . . . . . . . . . . . . . . . . . . . . . . . . 1,750,279 1,981,632 1,674,607

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-38

U.S. imports for consumption of leading imports under ATPA, 1999-2001

(1,000 dollars)

HTS No. Description 1999 2000 7403.11.00 Cathodes and sections of cathodes, of refined copper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323,788 565,651 3212.90.00 Pigments dispersed in nonaqueous media, in liquid or paste form, used in making paints; dyes and coloring

matter packaged for retail sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,939 199,393 

0603.10.60 Roses, fresh cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,878 192,420 

0603.10.70 Chrysanthemums, standard carnations, anthuriums and orchids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,925 121,311 0603.10.80 Cut flowers and flower buds suitable for bouquets, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,569 91,947 7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps . . . . . . . . . . . . . . . . . . . . 59,352 64,663 7113.19.10 Rope and chain for jewelry, of precious metal except silver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,099 44,860 0709.20.90 Asparagus, fresh or chilled, not reduced in size, not entered Sept. 15-Nov. 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,605 33,412 1701.11.10 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399 21,847 7901.11.00 Zinc, not alloyed, unwrought, containing 99.99% or more by weight of zinc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,001 49,032 1604.14.40 Tuna and skipjack, not in airtight containers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,054 74,620 0603.10.30 Miniature (spray) carnations, fresh cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,523 33,673 7113.19.29 Gold necklaces and neck chains, other than rope or mixed link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,337 18,302 3921.12.19 Nonadhesive plates, sheets, film, foil, and strip, cellular, of polymers of vinyl chloride, combined with textile

materials, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 22,837 

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,214 20,530 

0709.20.10 Asparagus, fresh or chilled, not reduced in size, entered Sept. 15-Nov. 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,553 9,991 2402.20.80 Cigarettes containing tobacco but not clove, paper-wrapped . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 937 7306.20.60 Iron/nonalloy steel tubing, used in oil or gas drilling, seamed or welded, external diameter 406.4 mm or less, of

other than circular cross section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,036 13,331 

4421.90.98 Articles of wood, including pencil slats and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,140 12,927 0703.10.40 Onions, other than onion sets or pearl onions not over 16 mm in diameter, and shallots, fresh or chilled . . . . . . . . . . . . . . . 10,234 4,285 7113.19.21 Rope necklaces and neck chains of gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,949 20,700 1704.90.35 Confections ready for consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,037 9,971 4418.20.80 Doors and their frames and thresholds, of wood, other than French doors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,637 10,532 4202.91.00 Leather golf bags, travel bags, sports bags, and cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,378 9,991 6908.90.00 Glazed ceramic flags and paving, hearth or wall tiles; glazed ceramic mosaic cubes and the like, n.e.s.o.i. . . . . . . . . . . . . . 6,994 8,392 

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,340,641 1,655,554 

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409,638 326,078 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750,279 1,981,632 

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included”.Source: Compiled from official statistics of the U.S. Department of Commerce.
A-51

Table A-39

U.S. imports for consumption of leading imports under AGOA for 2001

(1,000 dollars)

HTS No.

Description Description 2,001

2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25

degrees A.P.I. or more . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,531,839

8703.24.00 Other passenger motor vehicles, with spark-ignition internal

combustion reciprocating piston engine, cylinder capacity

over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232,277

2710.00.05 Distillate and residual fuel oils (including blends) derived from

bituminous minerals, testing under 25 degrees A.P.I. . . . . . . . . . . . . 203,751

6204.62.40 Women’s or girls’ trousers, breeches and shorts, not knitted or

crocheted, of cotton, nesoi ................................ 98,517

6203.42.40 Men’s or boys’ trousers and shorts, not bibs, not knitted or crocheted,

of cotton, not containing 15% or more by weight of down, etc . . . . . 82,361

6110.20.20 Sweaters, pullovers and similar articles, knitted or crocheted, of

cotton, nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,964

2710.00.25 Naphthas, except motor fuel/blending stock, derived in excess of 70

percent from bituminous minerals . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,834

7202.11.50 Ferromanganese containing by weight more than 4 percent of carbon 28,058

2710.00.10 Distillate and residual fuel oils, including blends, derived from

bituminous minerals, testing 25 degrees A.P.I. or more . . . . . . . . . . . 19,798

6110.10.10 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles,

knitted or crocheted, wholly of cashmere ..................... 19,072

2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under

25 degrees A.P.I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,694

0805.10.00 Oranges, fresh or dried . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,490

6205.20.20 Men’s or boys’ shirts, not knitted or crocheted, of cotton, not certified

hand-loomed and folklore product . . . . . . . . . . . . . . . . . . . . . . . . . . 13,823

2207.10.60 Undenatured ethyl alcohol of 80 percent vol. alcohol or higher, for

nonbeverage purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,392

7210.49.00 Iron or nonalloy steel, width over 600 mm, flat-rolled,

non-electrolytically zinc plated or coated, not corrugated . . . . . . . . 10,881

2710.00.45 Other mixtures of hydrocarbons, derived in excess of 70 percent

from bituminous minerals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,506

7209.17.00 Iron or nonalloy steel, width over 600 mm, cold-, flat-rolled, in coils,

0.5-1 mm

thick, not clad, plated, or coated . . . . . . . . . . . . . . . . . . . . . . . . . . 9,500

6105.10.00 Men’s or boys’ shirts, knitted or crocheted, of cotton . . . . . . . . . . . . . . 9,058

6110.30.30 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles,

knitted or crocheted, of man-made fibers, n.e.s.o.i .............. 8,216

6104.62.20 Women’s or girls’ trousers, breeches and shorts, knitted or

crocheted, of cotton ..................................... 7,453

0802.90.98 Nuts, fresh or dried, shelled, n.e.s.o.i. . . . . . . . . . . . . . . . . . . . . . . . . . . 7,320

7209.16.00 Iron or nonalloy steel, width over 600 mm, cold-, flat-rolled, in coils,

1-3 mm thick, not clad, plated, or coated . . . . . . . . . . . . . . . . . . . . . 7,251

2401.20.85 Tobacco, partly or wholly stemmed/stripped, threshed or similarly

processed, not from cigar leaf , described in addl US note 5 to

chap 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,736

6103.42.10 Men’s and boys’ trousers, breeches and shorts, knitted or crocheted,

of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,617

See footnotes at end of table.
A-52

Table A-39—Continued

U.S. imports for consumption of leading imports under AGOA for 2001

(1,000 dollars)

HTS No.

Description Description 2,001

7207.12.00 Iron or nonalloy steel semifinished products, less than 0.25% carbon,

of non-square rectangular cross section, n.e.s.o.i . . . . . . . . . . . . . . . 5,995

Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,468,402

All Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,755

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,579,158

1 The first U.S. imports entered the United States under the AGOA in January 2001.

Note.—Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.”

stands for “not elsewhere specified or included.”

Source: Compiled from official statistics of the U.S. Department of Commerce.
A-53

Table A-40

U.S. imports for consumption under AGOA, by sources, 2001

(1,000 dollars)

Rank Source 2001

1 Nigeria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,688,102

2 Gabon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938,695

3 South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417,256

4 Lesotho . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,523

5 Congo (ROC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,746

6 Madagascar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,145

7 Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,090

8 Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,899

9 Cameroon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,731

10 Ghana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,092

11 Malawi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,057

12 Swaziland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,314

13 Rwanda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265

14 Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215

15 Tanzania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

16 Zambia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,579,158

Note.—Because of rounding, figures may not add to totals shown.

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