OPERATION OF THE TRADE




	





 




	

THE YEAR IN TRADE:

AGREEMENTS PROGRAM

DURING 1998
Lynn M. Bragg, Chairman

Marcia E. Miller, Vice Chairman

Carol T. Crawford

Jennifer A. Hillman

Stephen Koplan

Thelma J. Askey

Address all communications to

Secretary to the Commission

United States International Trade Commission

Washington, DC 20436

COMMISSIONERS

U.S. International Trade Commission

Robert A. Rogowsky

Director of Operations

Acting Director, Office of Economics

www.usitc.gov

This report was principally prepared by

Country and Regional Analysis Division

Arona Butcher, Chief

Thomas F. Jennings, Project Leader

Joanne Guth, Constance Hamilton, Magdolna Kornis, Diane Manifold, Walker A. Pollard,

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

Office of the General Counsel

William W. Gearhart

Office of Tariff Affairs and Trade Agreements

Terry O’Brien

Office of Unfair Import Investigations

Jeffrey Whieldon

Office of Investigations

Debra Baker

Office of Industries

Laura Rodriguez–Archila and Melani Schultz

Office of Information Systems

Barbara V. Bobbitt

With the assistance of Interns

Michelle Thomas and Robert Noravian

Supporting assistance was provided by:

Patricia M. Thomas, Secretarial Services
OMB No.: 3117–0188

ITC READER SATISFACTION SURVEY

The Year in Trade 1998



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UNITED STATES

INTERNATIONAL TRADE COMMISSION

WASHINGTON, DC 20436

OFFICIAL BUSINESS

PENALTY FOR PRIVATE, USE $300



NO POSTAGE

NECESSARY

IF MAILED

IN THE

UNITED STATES

BUSINESS REPLY MAIL

FIRST CLASS PERMIT NO. 12840 WASHINGTON, DC

POSTAGE WILL BE PAID BY ADDRESSEE

U.S INTERNATIONAL TRADE COMMISSION

500 E STREET, SW.

WASHINGTON, DC 20277–2840

ATTN:

OFFICE OF ECONOMICS

The Year in Trade 1998
i
ii
iii

vii

CONTENTS



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

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

Summary of 1998 trade agreements activities 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

The World Trade Organization 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

The Organization for Economic Cooperation and Development 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Regional trade initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Bilateral trade relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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

The international economic environment and world trade in 1998 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

International economic environment 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

U.S. balance of payments position 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

U.S. merchandise trade in 1998 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

World trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Chapter 2. Selected Trade Activities in the WTO 

and the OECD in 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

World Trade Organization (WTO) . . . . . 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Uruguay Round and additional work programs 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

 Extended services negotiations 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Agreement on Basic Telecommunications 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Agreement on Financial Services 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

 Built-in agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Mandated negotiatons 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Agriculture 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Government procurement 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Implementation reviews 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

 1996 Singapore ministerial work program 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Information technology 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Working Group on Investment 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Working Group on Trade and Competition Policy 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Working Group on Transparency in Goverment Procurement 24 . . . . . . . . . . . . . . . . . . . . . . . . 

 1998 ministerial work program 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Dispute settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Panel reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Appeals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Selected WTO developments and committee activity 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Technical assistance and multilateral cooperation 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Technical assistance contributions 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cooperation with the Office International des Epizooties 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . 
viii

CONTENTS-Continued

Chapter 2. Selected Trade Activities in the WTO 

and the OECD in 1998-Continued

Selection of WTO Director-General 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Organization for Economic Cooperation and Development (OECD) . . . 29 . . . . . . . . . . . . . . . . . . . . . . . . . . 

Multilateral Agreement on Investment 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Bribery convention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Regulatory reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Electronic commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Chapter 3. Regional Trade Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

The North American Free Trade Agreement (NAFTA) 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

U.S. trade with NAFTA partners 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Meeting of NAFTA Free Trade Commission 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

NAFTA implementation issues 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Market access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Amendments to Mexico’s maquiladora regulations 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Transporation services 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Financial services 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Standards and conformity assessment 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Intellectual property rights 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Labor rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

NAFTA dispute settlement 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Chapter 11 investor-state disputes 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Chapter 19 panel reviews of AD/CVD determinations 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Chapter 20 general dispute settlement 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Asia Pacific Economic Cooperation (APEC) 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Free Trade Area of the Americas (FTAA) 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Structure and venue of FTAA negotiations 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Status of the negotiations 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Chapter 4. U.S. Relations with Major Trading Partners . . . . . . . . . . . . . . . . . . . . 51

European Union (EU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Transatlantic Economic Partnership 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Bananas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Other issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Mutual recognition agreements 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Veterinary equivalence agreement 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Specified risk material ban 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Data privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Magazines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

1998 developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Bilateral progress: U.S.-Canada Agriculture Agreement 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Japan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Autos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Deregulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
ix

CONTENTS-Continued

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

Mexican sugar and U.S. sweeteners 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

High-fructose corn syrup 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Meat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Cattle and beef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Hogs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Market access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Bilateral economic developments 72 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

WTO accession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Tariffs and taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Nontariff measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Hong Kong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Bilateral economic developments 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

WTO Accession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Market access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Industrial tariffs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Automotive products 77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Government procurement 77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Privatization of Taiwan’s monopoly board 78 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Automobiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Resolution of the dispute 79 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Other issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Taxes on distilled spirits 80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Bilateral investment treaty negotiations 81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Chapter 5. Administration of U.S. Trade Laws and Regulations . . . . . . . . . . . 83

Import relief laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Safeguard actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Adjustment assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Assistance to workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

NAFTA transitional assistance to workers 84 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Assistance to firms and industries 85 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Laws against unfair trade practices 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Section 301 investigations 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Super 301 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

Special 301 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

Antidumping investigations 91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Countervailing duty investigations 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Reviews of outstanding antidumping and countervailing duty orders 93 . . . . . . . . . . . . . . . . . . . . . . . . . 

Section 337 investigations 94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Other import administration laws and programs 97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Tariff preference programs 97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Generalized System of Preferences 97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
x

CONTENTS-Continued

Chapter 5. Administration of U.S. Trade Laws and Regulations—Continued

Caribbean Basin Economic Recovery Act 99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Andean Trade Preference Act 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

National security import restrictions 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Agricultural Adjustment Act 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

U.S. textile and apparel trade program 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

The Uruguay Round Agreement on Textiles and Clothing 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

U.S. quota actions in 1998 104 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Other trade agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

NAFTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

Proposed legislation on textiles and apparel from Africa 107 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

U.S. textile and apparel trade in 1998 108 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Developments in the rules of origin for textiles and apparel 109 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Major U.S. trade sanctions activities 110 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Figures

1.1. Trade agreements time line, 1947-98 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-2. Selected trade events, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1-3. U.S. merchandise trade with the world, by product sectors, 1998 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1-4. U.S. merchandise exports, imports, and trade balance with major trading

partners, 1998 (census basis) 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Tables

1-1. Comparative economic indicators of the United States and specified major trading partners, 

1998-99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

1-2. U.S. trade and current account balances, 1997-98 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2-1. WTO membership in 1998 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2-2. WTO accession working parties in 1998 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2-3. Signatories to the WTO Plurilateral Trade Agreement in 1998 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

3-1. U.S. trade with NAFTA partners, 1996-98 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4-1. High-fructose corn syrup: Total U.S. exports and exports to Mexico, 1993-98 69 . . . . . . . . . . . . . . . . . . 

4-2. U.S. exports to Mexico of live cattle, beef and beef products, 1994-98 71 . . . . . . . . . . . . . . . . . . . . . . . . 

5-1. Results of petitions filed under the Trade Adjustment Assistance program, FY 1998 and FY 1997 85 . . 

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

FY 1998 and FY 1997 85 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

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

program, FY 1998 and FY 1997 86 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

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

Assistance program, FY 1998 and FY 1997 86 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

5-5. Summary of activity on section 301 investigations on which actions were taken during 1998 88 . . . . . . 

5-6. Results of antidumping duty investigations, 1996-98 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

5-7. Results of countervailing duty investigations, 1996-98 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

5-8. Title VII 5-year reviews active in 1998, conducted under the authority of the Tariff

Act of 1930, expedited or full, by order date 95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

5-9. Title VII 5-year reviews, conducted under the authority of the Tariff Act of 1930,

either terminated in 1998 or in the initiation phase as of December 31, 1998

antidumping or countervailing duty orders and findings, by order date 96 . . . . . . . . . . . . . . . . . . . . 

5-10. U.S. imports for consumption from GSP beneficiaries and the world, 1998 99 . . . . . . . . . . . . . . . . . . . . 

5-11. U.S. imports for consumption and imports under the GSP from leading beneficiaries and total, 1998 100
xi

CONTENTS-Continued

Tables-Continued

5-12. U.S. imports for consumption from CBERA countries, 1996-98 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

5-13. U.S. imports for consumption from Andean countries, 1996-98 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

5-14. Trading partners with which the United States has textile and apparel quotas, as of

March 31, 1999, and U.S. bilateral imports of textiles and apparel in 1998 105 . . . . . . . . . . . . . . . . . 

5-15. Summary of major U.S. trade sanctions operative in 1998 112 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Statistical tables

A-1. U.S. merchandise trade with the European Union, by SITC numbers (revision 3), 1996-98 116 . . . . . . . . 

A-2. Leading exports to the European Union, by Schedule B numbers, 1996-98 117 . . . . . . . . . . . . . . . . . . . . 

A-3. Leading imports from the European Union, by HTS numbers, 1996-98 118 . . . . . . . . . . . . . . . . . . . . . . . 

A-4. U.S. merchandise trade with Canada, by SITC numbers (revision 3), 1996-98 119 . . . . . . . . . . . . . . . . . . 

A-5. Leading exports to Canada, by Schedule B numbers, 1996-98 120 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-6. Leading imports from Canada, by HTS numbers, 1996-98 121 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-7. U.S. merchandise trade with Japan, by SITC numbers (revision 3), 1996-98 122 . . . . . . . . . . . . . . . . . . . 

A-8. Leading exports to Japan, by Schedule B numbers, 1996-98 123 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-9. Leading imports from Japan, by HTS numbers, 1996-98 124 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-10. U.S. merchandise trade with Mexico, by SITC numbers (revision 3), 1996-98 125 . . . . . . . . . . . . . . . . . . 

A-11. Leading exports to Mexico, by Schedule B numbers, 1996-98 126 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-12. Leading imports from Mexico, by HTS numbers, 1996-98 127 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-13. U.S. merchandise trade with China, by SITC numbers (revision 3), 1996-98 128 . . . . . . . . . . . . . . . . . . . 

A-14. Leading exports to China, by Schedule B numbers, 1996-98 129 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-15. Leading imports from China, by HTS numbers, 1996-98 130 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-16. U.S. merchandise trade with Taiwan, by SITC numbers (revision 3), 1996-98 131 . . . . . . . . . . . . . . . . . . 

A-17. Leading exports to Taiwan, by Schedule B numbers, 1996-98 132 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-18. Leading imports from Taiwan, by HTS numbers, 1996-98 133 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-19. U.S. merchandise trade with Korea, by SITC numbers (revision 3), 1996-98 134 . . . . . . . . . . . . . . . . . . . 

A-20. Leading exports to Korea, by Schedule B numbers, 1996-98 135 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-21. Leading imports from Korea, by HTS numbers, 1996-98 136 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-22 Preliminary and final phase antidumping cases active in 1998, filed under authority of

title VII of the Tariff Act of 1930, by final outcomes and by USITC investigation number 137 . . . . 

A-23. Antidumping orders and findings in effect as of Dec. 31, 1998 139 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-24. Preliminary and final phase countervailing cases active in 1998, filed under authority

of title VII of the Tariff Act of 1930, by final outcomes and by USITC 145 . . . . . . . . . . . . . . . . . . . 

A-25. Countervailing-duty orders and findings in effect as of Dec. 31, 1998 146 . . . . . . . . . . . . . . . . . . . . . . . . 

A-26. Section 337 investigations completed by the U.S. International Trade Commission

during 1998 and those pending on Dec. 31, 1998 148 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-27. Outstanding sec. 337 exclusion orders as of Dec. 31, 1998 150 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-28. U.S. imports for consumption of leading GSP-duty-free imports, 1998 153 . . . . . . . . . . . . . . . . . . . . . . . . 

A-29. U.S. imports for consumption and imports eligible for GSP treatment, by import

categories under the Harmonized Tariff Schedule (HTS), 1998 154 . . . . . . . . . . . . . . . . . . . . . . . . . . 

A-30. U.S. imports for consumption of leading imports under CBERA, 1996-98 155 . . . . . . . . . . . . . . . . . . . . . 

A-31. U.S. imports for consumption under CBERA provisions, by country, 1994-98 156 . . . . . . . . . . . . . . . . . . 

A-32. U.S. imports for consumption under ATPA provisions, by country, 1996-98 157 . . . . . . . . . . . . . . . . . . . . 

A-33. U.S. imports for consumption of leading imports under ATPA, 1996-1998 158 . . . . . . . . . . . . . . . . . . . . . 
xii

List of Frequently Used

Abbreviations and Acronyms

ACP African, Caribbean, and Pacific

AD Antidumping

 APEC Asia Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

ATC Agreement on Textiles and Clothing

ATPA Andean Trade Preference Act

CBERA Caribbean Basin Economic Recovery Act

CFTA United States-Canada Free-Trade Agreement

CVD Countervailing Duty

EU European Union

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

HTS Harmonized Tariff Schedule

IFTA Israel Free Trade Agreement

IMF International Monetary Fund

IPR Intellectual Property Rights

ITA Information Technology Agreement

LTFV Less Than Fair Value

MFA Multifiber Arrangement

NAFTA North American Free Trade Agreement

NTM Nontariff Measure

NTR Normal Trade Relations

OECD Organization for Economic Cooperation and Development

OFAC Office of Foreign Assets Control

SITC Standard Industrial Trade Classification

SMC Singapore Ministerial Conference

TAA Trade Adjustment Assistance

TRIMs Trade-Related Investment Measures

TRIPs Trade-Related Aspects of Intellectual Property Rights

TRQ Tariff-Rate Quota

UNCTAD United Nations Conference on Trade and Development

URA Uruguay Round Agreements

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

CHAPTER 1

Introduction

Purpose and Organization

of the Report

This report is the 50th 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

Figure 1-1 presents a chronology of significant trade

agreements activities during the 50-year history of this

reporting series. 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. 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 1998 economic

environment; these subjects are generally discussed in

greater depth elsewhere in the report. Chapter 2

focuses on the 1998 activities of the World Trade

Organization (WTO) and the Organization for

Economic Cooperation and Development (OECD).

Chapter 3 discusses developments in major regional

forums. Chapter 4 focuses on bilateral trade

agreements concluded during the year, as well as other

selected activities, between the United States and its

1 Section 163(c) of the Trade Act of 1974 (Public Law

93-618, 88 Stat. 1978) 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 Executive Order No. 11846, Mar. 25, 1975.

major trading partners—the European Union (EU),

Canada, Japan, Mexico, China, Taiwan, and Korea.

Chapter 5 discusses the administration of U.S. trade

laws, regulations, and programs. The report covers the

1998 calendar year and, occasionally, early 1999

events. The report also has a statistical appendix.

Summary of 1998 Trade

Agreements Activities

U.S. trade agreements activities continued in 1998

within multilateral, regional, and bilateral forums

(figure 1-2). Highlights of other trade agreements

activities described later in the report are presented

below, and those portions of the report note sources of

the information presented.

The World Trade Organization

The WTO continued to administer the Uruguay

Round Agreements, focusing largely on implementing

the “built-in agenda” embedded in the agreements that

mandates new trade negotiations to begin in 2000.

During 1998, WTO members again discussed subjects

from work programs adopted at the first ministerial

conference held in Singapore in December 1996, as

well as at the second ministerial conference held in

May 1998 in Geneva; the latter marked the 50th

anniversary of the GATT multilateral trade system.

Two new members were cleared for accession once

their domestic ratification was notified to the WTO.

The Kyrgyz Republic was the only country to accede

to the WTO in 1998, bringing membership to 133.

Latvia officially joined in early 1999. Accession

negotiations are continuing for over 30 other

applicants. Discus- sions opened regarding the

successor to Renato Ruggiero, the first WTO

Director-General, whose term ended in April 1999. As

of May 1999, the successor issue had not been

resolved.
2

Figure 1-1

Trade agreements time line, 1947-98

1947-48

The first General Agreement on Tariffs and Trade (GATT) round of trade negotiations is held at Geneva, Switzerland.

The Trade Agreements Extension Act of 1948 (the second extension of the 1934 Trade Agreements Act) is enacted.

1949

The second GATT round of trade negotiations is held at Annecy, France.

1950-51

The third GATT round of trade negotiations is held at Torquay, England.

The Trade Agreements Extension Act of 1951 is enacted.

1951

The Schuman Plan establishes the European Coal and Steel Community (ECSC), basic for the future European

Union (EU), on April 18th among Belgium, France, the Federal Republic of Germany, Italy, Luxembourg, and the

Netherlands.

1955

The Trade Agreements Extension Act of 1955 extends the President’s negotiating authority from June 12, 1955, to

June 30, 1958.

1956

The fourth GATT round of trade negotiations is held at Geneva, Switzerland.

1957

The Treaty of Rome creates the European Economic Community (EEC) among 6 member states (EC-6).

1958

The Trade Agreements Extension Act of 1958 further extends the President’s negotiating authority.

1960

The Stockholm Convention establishes the European Free-Trade Association (EFTA) among 6 countries outside the

EC-6: Austria, Finland, Iceland, Liechtenstein, Norway, and Sweden.

1960-62

The fifth GATT round of trade negotiations, the so-called Dillon Round, is held at Geneva, Switzerland.

1961

The Organization for Economic Cooperation and Development (OECD) succeeds the Organization for European

Economic Cooperation (OEEC), the agency administering post-World War II Marshall Plan funds to revive war-torn

European economies.

1962

The Trade Expansion Act (TEA) of 1962 provides authority for U.S. participation in the sixth GATT round of trade

negotiations, the so-called Kennedy Round. Congressional negotiating authority provided for the establishment of a

”Special Representative for Trade Negotiations to superintend U.S. activities at the next round of GATT agreements.”

1963-67

The sixth GATT round of trade negotiations, the Kennedy Round, is held at Geneva, Switzerland.

1963

Central American Common Market (CACM) is formed.

1964

The first United Nations Conference on Trade and Development (UNCTAD I) is held at Geneva, Switzerland.
3

Figure 1-1—Continued

Trade agreements time line, 1947-98

1967

The Association of Southeast Asian Nations (ASEAN) is formed.

1968

The second United Nations Conference on Trade and Development (UNCTAD II) is held at New Delhi, India. The

conference approves the principle of offering trade preferences to exports from developing countries through

Generalized System of Preferences (GSP) programs. This principle gives rise to special and differential treatment for

developing countries under GATT multilateral trade rules, waiving the otherwise nondiscriminatory

“most-favored-nation” (MFN) basis for these rules, in order to assist economic development in these countries.

1969

Enlargement negotiations opened between the EC-6 and the United Kingdom (UK), Denmark, and Ireland, leading in

1973 to the first EC enlargement from EC-6 to EC-9.

The Andean Group for subregional integration is established under the Cartagena Agreement, signed at Cartegena,

Colombia.

1970

Clarifications and revisions of GATT Article VI regarding antidumping practices are developed by a number of major

trading partners, establishing the first GATT Antidumping Code.

1973

The Tokyo Declaration formally initiates the 1973-79 GATT round of multilateral trade negotiations, the so-called

Tokyo Round.

The UK, Ireland, and Denmark join the European Community (EC-9).

The Caribbean Community (CARICOM), a free-trade area among a number of Caribbean economies, is formed by

the Treaty of Chaguaramus (1977).

1975

President Ford signs the U.S. Trade Act of 1974, which provides authority for U.S. participation in the Tokyo Round

and changes the name of the United States Tariff Commission to the United States International Trade Commission.

The 1974 Trade Act is the most complex trade legislation since 1934—embodying the U.S. negotiating authority and

defining the scope and limitations of U.S. participation at the GATT negotiations.

1976

The U.S. Generalized System of Preferences program is inaugurated.

1979

The Trade Agreements Act of 1979 authorizes implementation of agreements negotiated during the Tokyo Round, the

first GATT round to deal with nontariff trade barriers, as well as more traditional tariff barriers.

1981

Greece joins the European Community as its 10th member (EC-10).

1983

Caribbean Basin Economic Recovery Act (CBERA) is enacted.

1985

The United States and Israel enter into a free trade area agreement.

1986

Ministers from 74 nations meet at Punta del Este, Uruguay, to initiate a new GATT round of multilateral trade

negotiations, the Uruguay Round.

Spain and Portugal join the European Community as its 11th and 12th members (EC-12).

1988

President Reagan and Canadian Prime Minister Mulroney sign the United States-Canada Free Trade Agreement.
4

Figure 1-1—Continued

Trade agreements time line, 1947-98

1989

The United States implements the Harmonized Tariff Schedule of the United States (HTS), replacing the Tariff

Schedule of the United States (TSUS).

The Asia Pacific Economic Cooperation (APEC) forum is established.

1990

President Bush announces the Enterprise for the Americas Initiative (EAI), a plan to create a new economic

relationship with Latin America.

1991

Mercado Comun del Sur (MERCOSUR) is implemented by the Treaty of Asuncion, signed at Asuncion, Paraguay.

The North American Free Trade Agreement (NAFTA) negotiations between Canada, Mexico, and the United States

are initiated.

The U.S. Andean Trade Preference Act (ATPA) becomes law.

GATT Director-General Arthur Dunkel issues the Draft Final Act of the Uruguay Round, widely called the ”Dunkel

draft.”

1992

The EC-12 becomes a single, frontier-free market.

1993

Congress approves NAFTA, and President Clinton signs implementing legislation.

More than 110 countries reach agreement on a new trade accord, completing the 1986-93 Uruguay Round after

seven years of negotiations.

The Treaty of European Union, the so-called Maastricht Treaty, is signed by the EC-12 member states, widening the

political, social, economic, and legal integration of its members.

1994

Uruguay Round Agreements Act enacted, implementing the results of the GATT Uruguay Round.

1995

The World Trade Organization (WTO) is established.

Austria, Sweden, and Finland join the European Union (EU), the successor to the EC, making 15 member states

(EU-15).

1996

The Helms-Burton Act (Liberatad Act) is passed.

1998

The Free Trade Area of the Americas (FTAA) talks are launched.
5

Figure 1-2

Selected trade events, 1998

January

January 14

January 15

January 27

The United States and Lithuania sign a bilateral investment treaty in Washington providing a

strong basis for trade and investment with Lithuania.

The Appellate Body of the World Trade Organization (WTO) affirms a dispute settlement panel

finding that the European Community’s (EC’s) ban on meat produced using growth–promoting

hormones violates the Agreement on Application of Sanitary and Phytosanitary Measures

(SPS Agreement).

The United States announces that it is prepared to lead in Information Technology Agreement

II (ITA II) negotiations. ITA II will expand coverage beyond the core landscape of information

products covered in the original ITA. ITA II will include important product areas driven by

information technology such as inputs and manufacturing equipment for information products.

February

February 3

February 5

February 12

February 13

February 18

February 20

The United States Trade Representative (USTR) and the Department of Commerce announce

that they will establish an interagency monitoring and enforcement committee to review the

Government of Japan’s progress in implementing formal representations made to a WTO

panel last year regarding Japan’s efforts to ensure market openness to imports of film.

WTO rules that the tariffs on higher technology exports implemented by the European Union

(EU), Ireland, and the United Kingdom violate WTO obligations.

WTO members agree to set February 5, 1998, as the entry–into–force date of their global

telecommunications agreement, reached February 15, 1997. The agreement will assure

more open and competitive global markets.

A NAFTA dispute settlement panel finds that U.S. emergency tariffs on imports of corn

brooms from Mexico violate NAFTA.

U.S.–Philippine Agricultural Agreement is concluded. The accord will result in the reform of

trade barriers such as restrictive tariff rate quotas. Increased market access for U.S. pork and

poultry meat exporters should also result.

USTR announces a section 301 investigation of Paraguay’s failure to protect intellectual

property rights.

The United States and Taiwan conclude a comprehensive market access agreement that

includes both immediate market access and phased–in commitments, measures necessary

for Taiwan’s accession to the WTO.

March

March 4

March 6

March 11

March 12

March 16

USTR creates the Office of African Affairs and appoints an Assistant U.S. Trade

Representative to lead this office, Rosa Whitaker.

Ambassador Barshefsky designates the city of Irbid, Jordan, as the first “qualifying industrial

zone” (QIZ) from which goods can enter the United States duty–free.

The U.S. House of Representatives passes the Africa Growth and Opportunity Act.1

U.S. tariff–rate quota trigger level for raw cane sugar is increased by 200,000 metric tons.

Ambassador Barshefsky and Brazilian Foreign Minister Luiz Felipe Lampreia sign an

agreement on autos requiring Brazil to terminate its auto program that currently benefits auto

manufacturers in Brazil via trade–distorting investment requirements.

See footnote at end of figure.
6

Figure 1–2—Continued

Selected trade events, 1998

March 20

March 26

March 27

March 30

The United States–Central American Regional Trade and Investment Framework Agreement

(TIFA) is signed. The accord will advance economic cooperation between the United States

and eight Central American countries.

The U.S. apple industry reaches an agreement with the Government of Mexico to reopen the

Mexican market to U.S. apple exporters.

The WTO finds in favor of the United States in the case of the Indonesian auto policy,

agreeing that various Indonesian measures hinder market access for U.S. automotive

products.

The WTO Appellate Body rules that Argentina’s specific duties on textiles and apparel and 3

percent “statistical” tax applied on almost all imports violate WTO commitments.

The United States suspends trade preferences under the Generalized System of Preferences

(GSP) and the Caribbean Basin Economic Recovery Act (CBERA) to Honduras because it

failed to provide adequate and effective protection of intellectual property rights.

April

April 6

April 17

April 26

The WTO finds Section 609 of U.S. Public Law 101–162, which restricts imports of shrimp

harvested with fishing equipment that results in accidental sea turtle mortality, inconsistent

with WTO rules.

The United States and Boliva sign a Bilateral Investment Treaty (BIT) to improve trade and

economic ties between the two countries.

Hong Kong authorities take action against a major copyright syndicate found to be stealing

U.S. movies, sound recordings, and software and seize a great number of reproductions.

May

May 4

May 5

May 6

The WTO and the Office International des Epizooties sign a cooperation agreement that

formalizes cooperation related to the WTO Agreement on the Application of Sanitary and

Phytosanitary Measures (SPS), which establishes rules for human, animal, and plant health

measures affecting international trade.

The United States announces that it will bring enforcement action against China for the illegal

“transhipment “ of textiles. The United States alleges that China is in violation of a 1997

bilateral trade agreement governing U.S.–China textile and apparel trade, specifically the

Chinese practice of shipping textile products produced in China through other countries to

circumvent quotas limiting the number of Chinese textiles and apparel sold in the United

States.

USTR and the U.S. Department of Agriculture form a senior–level streering group on sanitary

and phytosanitary agricultural trade to address foreign SPS trade issues that unfairly restrict

U.S. agricultural exports.

May 18

May 27

May 28

USTR announces allocation of the 200,000–metric–ton increase in the in–quota amount

available under the U.S. raw cane sugar tariff–rate quota.

USTR initiates an investigation of Mexican practices affecting high–fructose corn syrup

(HFCS).

USTR announces the immediate initiation of a special 301 out–of–cycle review of the

adequacy and effectiveness of New Zealand’s intellectual property regime.

A WTO arbitrator decides that the EU must comply with WTO recommendations and remove

the beef hormone ban by May 1999.

See footnote at end of figure.
7

Figure 1–2—Continued

Selected trade events, 1998

June

June 1

June 5

June 26

June 30

President Clinton, in response to an affirmative determination by the U.S. International Trade

Commission under the U.S. safeguard law, imposes a safeguard measure in the form of a

quota on imports of wheat gluten.

APEC concludes the telecommunications equipment Mutual Recognition Arrangement (MRA).

The MRA allows U.S. telecommunications equipment manufacturers to take greater

advantage of new technology and shortening life cycles of high technology.

The WTO finds that the EU has not violated WTO obligations by raising tariffs on U.S.

computer–networking equipment.

Ambassador Barshefsky reacts to the EC banana decision, stating that the United States will

retaliate in order to protect U.S. interests, including withdrawal of concessions.

The United States restores GSP and CBERA trade preferences to Honduras after the

Government of Honduras takes steps toward stopping broadcast piracy.

July

July 1

July 13

July 17

July 21

USTR announces new reforms to the GSP that will enhance market access opportunities in

the United States for sub–Saharan African countries in an effort to accelerate their economic

integration and cooperate to expand their exports.

USTR files a formal notice of appeal to the WTO regarding its ruling on shrimp turtles.

Kyrgyz Republic becomes 133rd member of the WTO.

The WTO and the World Intellectual Property Organization (WIPO) announce an initiative on

the implementation of the WTO Intellectual Property Rights (IPR) Agreement, or the “TRIPs”

Agreement. These organizations will help developing countries meet their WTO obligations to

protect intellectual property by the January 1, 1999, deadline.

August

August 3

August 5

August 7

August 10

August 11

President Clinton announces the elimination of tariffs on a variety of Mexican products in an

effort to eliminate tariffs on approximately $1 billion in trilateral trade.

The United States wins the WTO case on Korean liquor taxes, as Korean taxes on distilled

spirits are found to violate Korea’s WTO obligations concerning discriminatory taxes.

The United States and Taiwan come to agreement on the bilateral access portion of the

negotiations for Taiwan’s accession to the WTO and formally submit the trade package to the

WTO.

Because of allegedly growing losses by U.S. industry, USTR extends for three months the

Special 301 investigation of inadequate IPR protection and enforcement in Paraguay.

USTR places Taiwan on the Special 301 “watch list” to monitor the enforcement of IPRs in

Taiwan.

September

September 11

September 15

The USTR announces new measures to ensure that imports of certain textile products from

Macau follow country–of–origin requirements for importation into the United States.

The United States and the Hong Kong Special Administrative Region agree to steps to

combat illegal circumvention of textile and apparel quota arrangements. This agreement is

part of a larger agreement to combat illegal textile transshipments.

See footnote at end of figure.
8

Figure 1–2—Continued

Selected trade events, 1998

October

October 1

October 21

October 22

October 27

October 30

Canada terminates a discriminatory restriction that prohibits the routing of international

telecommunications services to or from Canada through the United States. This practice was

identified during the USTR’s annual review of the operation of U.S. telecommunications trade

agreements.

Latvia signs WTO accession protocol. Latvia will become a WTO member 30 days after it

notifies the WTO Secretariat that its national ratification proceedings have been completed.

President Clinton signs into law the renewal of the GSP through June 30, 1999, retroactive to

June 30, 1998.

Conclusion of the first round of trade negotiations for the Free Trade Area of the Americas

(FTAA) in Miami.

The WTO finds that Japanese testing requirements for agricultural products violate Japan’s

obligations to the WTO.

The United States and five members of the Andean Community sign an agreement

establishing a U.S.–Andean Community Trade and Investment Council.

November

November 9

November 14–15

November 17

The United States and the EU agree to implement the Transatlantic Economic Partnership

(TEP) initiative.

The Tenth Asia Pacific Economic Cooperation (APEC) ministerial meeting is held in Kuala

Lumpur, Malaysia.

The United States and the Republic of Paraguay sign a Memorandum of Understanding and

an Enforcement Action Plan in an effort to combat piracy and counterfeiting in Paraguay.

December

December 1

December 3

December 4

December 21

December 23

The United States and Mozambique sign a bilateral investment treaty.

The United States and Sweden come to agreement on the enforcement of intellectual

property protection in Sweden.

The United States and Canada sign an agreement on an initial set of measures to open

further Canadian markets to U.S. agricultural products.

The USTR announces the list of EU products that will be subject to a prohibitive tariff as a

result of a dispute with the EU over its discriminatory banana regime.

The United States and Vietnam bilateral copyright agreement enters into force.

1 The U.S. Senate took no action on this measure in 1998.

The WTO was involved in a diverse range of areas

in 1998. WTO members adopted the Declaration on

Global Electronic Commerce in May 1998. The work

program will examine all trade-related issues relating

to global electronic commerce (“e-commerce”), taking

into account the economic, financial, and development

needs of developing countries, as well as recognizing

work being undertaken in other international forums.

Negotiations to expand the Information Technology

Agreement (ITA) took a difficult course during 1998,

leading only to agreement in December—after several

false starts—to resume negotiations yet again in early

1999. In 1998, Hong Kong, Switzerland, the

Netherlands, Britain, and the United States, each made

technical assistance contributions to help better

integrate the developing-country members and

members with transition economies into the world

trading system. The WTO Secretariat also continued

in 1998 to expand its cooperation with other

international organizations in an effort to integrate
9

more fully the multilateral rules on trade with rules in

related fields.

Use of arbitration provisions in the WTO dispute

settlement process grew in 1997, and that trend

continued in 1998. The growing number of dispute

cases brought under WTO rules during 1998 continued

to be widely seen as indicating that both developing

and developed country members support the

multilateral dispute-settlement system. Increasingly,

arbitration is being used to determine how long a

member government may take to implement the

conclusions of a panel or an Appellate Body report.

The Organization for Economic

Cooperation and Development

In 1998, discussions continued in the OECD on

how to conclude negotiations over the Multilateral

Agreement on Investment (MAI). OECD ministers

confirmed in October 1998 that MAI negotiations were

no longer taking place, although they agreed on the

importance of the multidisciplinary work on

investment continuing to take place at the OECD. The

ministers have directed negotiators to continue work to

reach a conclusion and seek broad participation in an

MAI.

The OECD work program also began to review

individual national laws and regulations related to the

1997 OECD Convention on Combating Bribery and

the 1997 report to ministers on regulatory reform.

Although the Convention was adopted in November

1997 with the expectation that it would enter into force

by the end of 1998, entry into force did not occur until

February 1999, when a sufficient number of signatories

had deposited their ratification with the organization.

Regarding a recent addition to the OECD work

program, discussion began regarding barriers and

solutions to electronic commerce.

Following the 1997 report to ministers on

regulatory reform, the OECD launched in 1998 its first

set of reviews of individual national laws and

regulations—assessing Japan, Mexico, the Netherlands, and the United States. The second set of

reviews—examining Denmark, Korea, Spain, and

another country to be identified—is expected to be

launched in early 1999 and scheduled for completion

in early 2000.

Regional Trade Initiatives

In 1998, the North American Free Trade

Agreement (NAFTA) marked its fifth year of

existence. A second round of accelerated tariff

elimination on approximately 600 product categories

was successfully agreed upon and completed at the

annual NAFTA Commission meeting on April 29,

1998. Issues of particular importance in 1998 included

market access, labor rights, and intellectual property

rights. On June 10, 1998, the United States and

Mexico signed a Joint Statement committing the two

governments to cooperation in the area of food safety.

The Commission for Labor Cooperation (CLC)

completed its four-year review of the North American

Agreement on Labor Cooperation (NAALC) and

undertook ministerial consultation on three public

submissions of allegations of violations of the safety,

health, and civil rights of workers in Mexico. Mexico

announced its National Campaign Against Piracy on

November 11, 1998, in an effort to increase

enforcement of intellectual property rights. In the area

of dispute settlement, the number of pending Chapter

11 investor-state cases more than doubled in 1998,

with the submission of four new claims and the

resolution of one of the three cases filed in 1997. Ten

new requests for Chapter 19 panel reviews of

antidumping/countervailing duty determination

(AD/CVD) were filed in 1998. In addition, two new

requests for Chapter 20 general dispute settlement

panel reviews were filed by Mexico against the United

States in 1998 on issues relating to cross-border

trucking services and investment and cross-border bus

services.

Negotiations for the Free Trade Area of the

Americas (FTAA) were formally launched in Miami on

August 31, 1998, with the first meeting of the

negotiating group on market access. By year-end

1998, all nine FTAA negotiating groups had met.

Three special FTAA committees, addressing civil

society, electronic commerce, and smaller economies,

held their first meetings in October 1998. At its

meeting, the committee on civil society established a

period for public comments on the FTAA from

November 1, 1998, through March 31, 1999.

During 1998, the Asia-Pacific Economic

Cooperation (APEC) forum primarily focused on

implementing the APEC leaders’ 1997 directive to

initiate Early Voluntary Sectoral Liberalization (EVSL)

in 15 sectors. Nine of the sectors were to be concluded

by the Ministerial Conference in November and

included environmental goods and services, energy

equipment and services, fish and fish products, toys,

forest products, gems and jewelry, medical equipment

and instruments, chemicals, and a telecommunications

mutual recognition agreement. The remaining six

sectors (autos, oilseeds, food, civil aircraft, fertilizers,

and rubber) were to be further developed for review by

trade ministers in June and possibly recommended to

APEC leaders in November 1998.
10

At the APEC Ministerial Conference during

November 14-15, with regard to EVSL, APEC

ministers agreed to lower tariffs and other trade

barriers in the nine key sectors and agreed to include

end-rates, end-dates, and product coverage. The

ministers also agreed to broaden participation in the

agreement by striving to conclude an agreement in the

WTO by the end of 1999 on the nine-sector package.

In the six remaining sectors, covering $1.6 trillion in

trade, ministers agreed to advance market-opening

work in time for review by the trade ministers in June

1999.

Bilateral Trade Relations

European Union

U.S.-EU trade relations were marked by both

cooperation and confrontation during 1998. In

December, U.S. and EU officials launched a major new

trade initiative called the Transatlantic Economic

Partnership, which outlines ways that the United States

and EU can cooperate to facilitate bilateral trade and

strengthen the multilateral trading system. Bilaterally,

the initiative covers a broad range of issues, including

regulatory barriers to trade in goods and services,

government procurement, and intellectual property

rights. In addition, a mutual recognition agreement

concluded in 1997 was implemented on December 1,

1998.

However, trade officials also addressed a series of

bilateral disputes, most notably EU implementation of

a WTO-consistent banana import regime. The

U.S.-EU banana dispute is the first major controversial

case to progress so far through the WTO’s dispute

settlement system, established under the 1995 Dispute

Settlement Understanding.

Canada

During the first year of essentially duty-free trade

for most goods between the United States and Canada,

economic and trade relations between the world’s

largest trading partners were relatively smooth. On

January 1, 1998, one of the goals of the U.S.-Canada

Free Trade Agreement—reciprocal duty-free status for

all goods originating in the United States and

Canada—was accomplished.

While the volume of trade between the two

countries is unofficially estimated at nearly $1 billion a

day, a free trade agreement will not resolve all bilateral

trade difficulties, and a certain number of issues will

inevitably receive substantial attention. One major

irritant in U.S.-Canada trade relations during 1998 was

the unresolved issue of Canadian magazines, a case

that was supposedly resolved in 1997 as a result of a

ruling by a WTO dispute settlement panel, which was

affirmed by a WTO Appellate Body ruling. At

year-end 1997, Canada was in the time period allowed

under the dispute settlement mechanism for a country

to come into compliance with a WTO Appellate Body

ruling. It had been anticipated that the issue would be

resolved by mid-1998. By the end of the year, the

issue was still in dispute, and threats of action on both

sides of the border were continuing.

A positive development in the bilateral relationship

took place during 1998 with the successful negotiation

of an agricultural agreement between the United States

and Canada. Agriculture has been an area of discipline

that has eluded full incorporation into international

trade agreements over the years, and an examination of

recent differences between the United States and

Canada would indicate that difficulties in the sector

were frequent (lumber, grain, dairy pricing, swine,

potatoes, and salmon are among recent bilateral

disputes). The U.S.-Canadian Agricultural Agreement

is seen as an initial step toward greater management of

the bilateral agricultural trading relationship. While

the immediate effects are more likely to be regional or

crop-specific, the agreement focuses on an area for

further attention and cooperation.

Japan

During 1998, Japan came under pressure from the

United States and other nations to stimulate its

economy, resolve loan problems in its banking sector,

and reduce its trade surplus. Restrained government

spending during mid-1996 to early 1998 appeared to be

a drag on the economy. Despite the public funds made

available to Japanese banks, nonperforming loans also

appeared to hold back a general economic recovery.

Against this backdrop, Japan’s overall trade surplus

and its surplus with the United States rose significantly,

reflecting the impact of the lagged effects of the

weakened yen and the economic downturn in Asia.

 In 1998, bilateral agreements concerning autos,

insurance, and deregulation appeared to receive the

most attention from negotiators. The United States

continued to monitor other bilateral agreements such as

those covering semiconductors, computers, flat glass,

legal services, telecommunications, and harbor

services.

Mexico

Mexican access to the U.S. sugar market and U.S.

access to the Mexican high-fructose corn syrup
11

(HFCS) market continued to be major issues of dispute

in 1998. In recent years, Mexican sugar producers

have expressed interest in accelerating the NAFTA

timetable, which provides for a tenfold expansion from

the year 2001 of the present U.S. sugar quota allocated

to Mexico. Mexican sugar producers also have

expressed concerns that various HFCS products

imported from the United States, which are less

expensive than sugar, might replace Mexican sugar in

soft drinks and in candy and confectionary. Mexico’s

antidumping charges regarding various HFCS products

imported from the United States and U.S. trade action

contesting the validity of these charges are discussed

later in this report.

Mexican antidumping investigations against

imported U.S.-origin live cattle and beef products and

hogs for slaughter were important bilateral trade issues

in 1998. Although under NAFTA most Mexican

imports of live cattle and hogs and most beef and veal

from the United States and Canada now enter free of

duty, affirmative determinations in these dumping

cases may result in imposition of new antidumping

duties which will affect the duty reductions. All of

these dumping cases were prompted by recent

increases in U.S. exports. The U.S. industry asserts

that the real problem in all these cases concerning

HFCS and live animals and meat is that Mexican

industries producing these products are not competitive

and are therefore calling for U.S. duty protection.

China

In 1998, China took steps to reduce tariffs pursuant

to its bilateral commitments and in an effort to support

its WTO accession bid. Average tariff rates have

dropped from 23 percent ad valorem in 1996 to 17

percent in 1997, and China’s President Jiang Zemin has

announced that China will reduce the average tariff

rate to 15 percent by the year 2000. After 12 years of

WTO accession negotiations, China’s 1998 proposals

still did not address satisfactorily a wide range of

issues such as market opening in agricultural products,

industrial goods, consumer goods, and services. In

particular, progress has been slow in opening the

services sector to foreign competition, including the

fields of legal, architectural, distribution, and financial

services.

Arrangements for Hong Kong’s reversion to China

as a special administrative region have allowed the

region to maintain a high degree of autonomy as well

as maintain its status as one of the most open

economies within the WTO system. The majority of

bilateral discussions between the United States and

Hong Kong during the past 2 years have involved

issues relating to the protection of intellectual property

rights (IPRs). Hong Kong enacted stronger copyright

and licensing laws in 1998. Although the region has

increased antipiracy measures, copyright piracy

remains a serious problem.

Taiwan

Bilateral relations between Taiwan and the United

States in 1998 focused on the continuing problem of

IPR enforcement. In April 1997, USTR removed

Taiwan from the Special 301 list for the first time since

1988. In its annual Special 301 review in May 1998,

the USTR indicated that Taiwan authorities had made

assurances to address U.S. concerns regarding IPR

enforcement and that USTR would closely monitor

implementation of the specific measures over the

following several months. However, IPR enforcement

actions in Taiwan were ineffective in reducing the

production and export of pirated and counterfeit goods,

and the country remained one of the top four sources of

infringing goods that U.S. Customs agents seized on

importation. As a result, USTR placed Taiwan back on

the Special 301 “watch list” in August 1998.

Korea

U.S.-Korean trade relations continued to be

relatively calm in 1998, reflecting an easing of trade

frictions in recent years. There was one major bilateral

trade issue involving the United States and Korea in

1998. In October, the United States and Korea

announced a Memorandum of Understanding ending a

U.S. section 301 action concerning the access of

foreign-made motor vehicles to the Korean market.

The Korean Government agreed to lower its

WTO-bound tariff rate on motor vehicles, reduce taxes

on motor vehicles with larger engine displacements,

introduce a system of secured financing that will

enable Korean consumers to finance purchases of U.S.

vehicles more easily, and streamline its standards and

certification procedures for imported vehicles.

Administration of U.S. Trade

Laws and Regulations

The following developments in U.S. trade

programs occurred during the year:

 The Department of Labor instituted 1,400

investigations for trade adjustment assistance to

workers in fiscal year (FY) 1998, a slight

increase from the number instituted in FY 1997.

In addition, 809 petitions were filed under the

U.S. NAFTA-related transitional adjustment

assistance program for
12

workers. This figure represents a small increase

over the number of such filings in the previous

fiscal year. The Department of Commerce

certified 167 firms as eligible to apply for trade

adjustment assistance during FY 1998, a slight

increase over the number in FY 1997.

 Following final affirmative determinations by

the Commission and the Department of

Commerce, nine new antidumping duty orders

were issued in 1998. Following final

affirmative determinations by the Commission

and the Department of Commerce, one new

countervailing duty order was issued in 1998.

 The Commission’s section 337 caseload

continues to be dominated by investigations

involving complex technologies, particularly in

the computer and telecommunications fields.

The Commission concluded fifteen

investigations under section 337 during the

year. No exclusion orders were issued in 1998.

 USTR initiated two section 301 investigations

in 1998. These included investigations of

Mexican market access barriers to

high-fructose corn syrup and Paraguay’s

protection of intellectual property rights. In

addition, further developments occurred in four

investigations initiated prior to 1998. These

included terminations of investigations into EC

policies regarding banana imports and Brazil’s

tariff barriers to automotive imports.

 The U.S. Generalized System of Preferences

(GSP) expired on June 30, 1998, but was

renewed retroactively through June 30, 1999,

by legislation signed by the President on

October 21, 1998. On January 1, 1998, six trade

partners (Aruba, Cayman Islands, Cyprus,

Greenland, Macau, and the Netherlands

Antilles) were removed as beneficiaries under

the GSP.

 On January 1, 1998, the WTO countries

integrated another 17 percent of their textiles

and apparel trade into the WTO regime, as

required by the Uruguay Round Agreement on

Textiles and Clothing (ATC). In 1998, the

United States initiated three requests for

consultations (“calls”) with supplying countries

to establish new quotas — one safeguard action

under the ATC on combed cotton yarn from

Pakistan and two calls under section 204 of the

Agricultural Act of 1956 on certain apparel

articles from Cambodia.

 U.S. imports of textiles and apparel rose by 14

percent over the 1997 level to a record 26.1

billion square meter equivalents valued at $60.5

billion. Mexico, Canada, and the Caribbean

Basin countries accounted for a considerable

share of the increase in sector imports in 1998.

U.S. apparel producers continued to expand

their use of offshore assembly operations in

Mexico and Caribbean Basin countries to cut

costs in the face of a highly competitive retail

market. For the third consecutive year, Mexico

remained ahead of China as the single-largest

country supplier of textiles and apparel by

quantity, and for the first time, Mexico also

surpassed China as the single-largest supplier of

sector imports by value. Competition from

lower-priced sector imports from the East Asian

nations that had devalued their currencies in

1997 contributed to the decline in sector

imports from China in 1998.

 The United States continued to impose

economic sanctions on a number of countries in

1998, including trade sanctions that were

imposed and subsequently removed against

India and Pakistan. Also during 1998,

sanctions imposed by the Commonwealth of

Massachusetts against companies that do

business with Burma were considered by U.S.

trading partners at the WTO.

The International Economic

Environment and World

Trade in 1998

International Economic

Environment

In 1998, world economic growth and world trade

expanded at slower rates than in the previous year

because of the impact of the financial and exchange

markets crisis in Asia, Japan, and Russia. The impact

of the crisis on industrial countries’ economic growth

has been limited so far, in part, because of the prudent

management of monetary policies in the United States,

Europe, and Canada.
13

World merchandise trade volume in goods and

services grew by 3.7 percent in 1998, a precipitous

decline from the 9.7 percent growth posted in 1997.

World real output is estimated to have grown by 2.0

percent in 1998, following a 4.1 percent annual growth

rate in 1997.3 Prudent monetary policies and

commitments to reduce budget deficits in a number of

countries, including the United States, Canada, and the

EU members, have played a major role in keeping

inflation low and inducing stable rates of economic

expansion. Table 1-1 shows economic indicators of

the United States and selected U.S. trading partners for

1998 and prospects for 1999.

During 1998, the U.S. economy grew to near full

capacity as real output expanded buoyantly. Real gross

domestic product (GDP) grew in 1998 by 3.9 percent,4

following the same annual rate of growth in 1997.

Inflation reached its lowest level in years.

Unemployment dipped to an annual average of 4.5

percent, the lowest level in nearly 20 years.5

Favorable conditions in U.S. financial markets

bolstered growth. Longterm interest rates were their

lowest in many years. The stock market, with the

exception of a few downturns, registered all-time

highs, and credit has remained readily available to

investors. This combination of strong growth and low

inflation reflected, among other things, favorable

influences of declining commodity prices and a strong

dollar, but was also attributable to more durable

changes in the product market and the flexibility of

U.S. labor markets. As in past years, gains in

competitiveness in labor and product markets and more

rapid technology-driven gains in efficiency have

supported strong economic growth and low inflation.

In 1998, domestic demand was the major source of

U.S. economic growth. The spillover from the Asian

financial crisis has been felt most on the U.S. trade

balance and the current account. Both trade and

current account deficits increased substantially in 1998.

The U.S. merchandise trade balance recorded a deficit

of $272.9 billion, a substantial increase over the 1997

merchandise trade deficit of $198 billion, and the

current account deficit rose to $233.5 billion from a

deficit of $155.2 million in 1997.6

3 International Monetary Fund (IMF), World Economic

Outlook, Oct. 1998, p. 20, table 2.2.

4 U.S. Department of Commerce, Bureau of Economic

Analysis, BEA 99–05, Gross Domestic Product Fourth

Quarter, 1998.

5 U.S. Department of Labor, The Unemployment

Situation, USDL 99–52, Feb. 1999.

6 U.S. Department of Commerce, Bureau of Economic

Analysis, BEA 99–07, U.S. International Transactions:

Fourth Quarter and Year, 1998; and Official Trade Statistics

of the U.S. Department of Commerce.

Major U.S. trading partners experienced slower

rates of output growth than the United States. In

Canada, real output grew in 1998 at an annual rate of

3.0 percent, following a 3.7 percent growth rate in

1997. Canada’s economic growth in 1998 was

underpinned by tight fiscal policies that reduced budget

deficits and by a relaxed monetary policy that lowered

long-term interest rates. This mix of tight fiscal and

relaxed monetary policies has encouraged domestic

investment and, in the meantime, boosted domestic

demand. In Canada, foreign demand for exports also

rose in large part because of the depreciation of the

Canadian dollar over the major part of the year;

however, because of the strengthening of domestic

demand, imports also increased much more, thus

reducing Canada’s trade surplus and increasing the

current account deficit.

In the EU, output growth strengthened, labor

market conditions improved, and, to a high degree,

inflation rates converged closer to price stability.

These conditions set the stage for the launching in

1999 of the Euro, the common currency adopted by 11

EU members. In 1998, real output grew by 2.9 percent

in the EU.7 Unemployment declined a little, but

remained high, ranging from 11.2 to about 12.2 percent

in France, Germany, and Italy. The unemployment rate

in the EU averaged 10.6 percent.8 Despite some

adverse effects from the Asian financial crisis,

economic growth in a number of EU countries has

been gathering momentum. Increased domestic

demand partially replaced the decline in exports to

Asian countries, bolstering economic growth. In

addition, foreign exchange markets have stabilized,

and reductions of fiscal deficits have been achieved in

most, if not all, of the EU members. However,

recurrent uncertainties about the feasibility of the EU

common monetary system, combined with the rigidity

of EU labor markets, have increased labor costs and

may have served to dampen employment growth.

In Japan, economic growth decelerated in 1998

from previous years because of a slow rise in domestic

demand, despite intensive public-sector investment and

expanding housing construction. Following a surge in

1996, economic activity decelerated sharply in 1997

and 1998. Japan’s financial sector has suffered bad

debt problems, although the severity is much less than

in other Asian economies.9 However, the Asian

7 OECD, World Economic Outlook, vol.64, Dec. 1998,

Annex p. 191, table 1.

8 Ibid., Annex p. 211, table 21.

9 Ibid., p. 42.
Table 1-1

Comparative economic indicators of the United States and specified major trading partners, 1998-99

 Real GDP Inflation rates1

Unemploymentrates2

Governments’budget balances3

Merchandisbalances

Country 1998 1999 1998 1999 1998 1999 1998 1999 1998 

 Percent change from previous period Percent of GDP - Billion dolla

G-7 countries: United States . . . . . . . 3.9 1.5 0.8 1.2 4.4 5.0 1.6 0.8 -255.7  Canada . . . . . . . . . . . . 3.0 2.4 1.0 1.7 8.4 8.1 2.0 2.2 10.4  Japan . . . . . . . . . . . . . -2.6 0.2 0.6 -0.7 4.2 4.6 -6.1 -7.8 126.0  Germany . . . . . . . . . . 2.7 2.2 1.0 1.2 11.2 10.8 -2.4 -2.1 88.3  United Kingdom . . . . 2.7 0.8 2.0 2.8 6.5 7.4 -0.4 -0.7 -29.2  France . . . . . . . . . . . . 3.1 2.4 0.5 0.9 11.8 11.2 -2.9 -2.4 27.9  Italy . . . . . . . . . . . . . . . 1.5 2.1 2.3 1.8 12.2 12.1 -2.6 -2.2 51.0  European Union . . . . 2.8 2.2 1.5 1.7 10.6 10.3 -1.8 -1.6 176.7  Mexico . . . . . . . . . . . . 4.6 3.6 16.0 13.5 3.4 3.5 -2.9 -1.8 -7.1  Total OECD . . . 2.2 1.7 3.3 2.5 7.1 7.3 -1.0 -1.5 53.6  China . . . . . . . . . . . . . 7.6 7.7 -2.5 1.0 NA NA NA NA NA  Taiwan . . . . . . . . . . . . 4.5 4.0 1.2 0.0 2.6 2.4 -0.5 -0.5 9.8  Republic of Korea . . . -6.5 0.5 8.3 3.5 7.3 8.3 -6.2 -6.2 38.3  Hong Kong

(China) . . . . . . . . . . -4.5 1.5 3.5 3.0 5.0 5.7 -1.6 -1.8 -20.0 

 Singapore . . . . . . . . . 0.0 0.5 -0.2 0.5 4.4 5.7 2.2 1.1 N/A  Thailand . . . . . . . . . . . -7.0 2.0 8.5 5.5 NA NA NA NA N/A  Malaysia . . . . . . . . . . . -4.7 -0.5 5.3 4.0 NA NA NA NA N/A 

1 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 (+) or deficit (-) as a percentage of GDP.

Note.—1998 and 1999 data are projections of the IMF and OECD, except for U.S. GDP, inflation, and unemployment rates for 19Source: OECD, World Economic Outlook, vol. 64, Dec. 1998; International Monetary Fund (IMF), World Economic.Outlook, Oct. 1

the U.S. Department of Commerce.
15

financial crisis has significantly reduced Japan’s total

exports because a large share of the country’s exports

is destined for Asia. A drastic decline in domestic

demand has reduced Japan’s imports further, resulting

in a large surplus in Japan’s current account. Japan’s

real GDP contracted by 2.6 percent in 1998 and

unemployment rose to 4.2 percent from 3.4 percent a

year earlier. 10

Growth prospects in developing and emerging

economies in 1998 were mixed. In Latin America

(including Mexico and the countries of the Caribbean,

Central America, and South America), economic

activity continued to slow in 1998, especially in

Argentina, Brazil, and Peru.

The Asian financial crisis and circumstances such

as Russia’s default on its foreign debt repayment

discouraged foreign capital inflows to emerging

markets. This adversely affected the current account

positions of several Latin American countries, resulting

in increased current account deficits. Toward the end

of 1998, Brazil was at the center of foreign investor

worries because of its growing fiscal deficit. The

Brazilian currency experienced downward pressures.

Because Brazil is the largest economy in South

America and the ninth largest in the world, worries

have grown that the financial crisis that began in Asia

could also spread to other South American countries,

particularly Argentina, Chile, and Peru. Real GDP is

projected to grow at slower rates in 1998 than in the

previous year. These annual growth rates were 0.8

percent in Brazil, following 3.7 percent growth in the

previous year; 4.0 percent in Argentina, following 8.6

percent growth; 5.0 percent in Chile, following 7.1

percent growth; 2.5 percent in Columbia, following 3.1

percent growth; 2.5 percent in Peru, following 7.2

percent growth; and a negative growth in Venezuela,

following a 6.1 percent growth in 1997.

In Mexico, economic growth slowed as a result of

the contagion effects of the Asian financial crisis and

the government’s tightening of fiscal and monetary

policies. The slowdown in overall economic activity

seems to have reduced imports and stopped the

deterioration of the deficit on the current account and

the slide in the foreign value of the peso.

In the Pacific Rim, economic activity slowed

substantially in 1998 in most of the region’s countries

because of the decline in investment and consumption

spending resulting from the Asian financial crisis.

According to OECD published data, growth rates for

China slowed to 7.6 percent (at an annual rate) in 1998

10 Ibid., pp. 191 and 211.

from 8.8 percent in the previous year. Estimated 1998

growth rates for some other partners were Indonesia

(-15.5 percent), Korea and Thailand (-7.0 percent),

Malaysia (-4.7 percent), Philippines (-0.5 percent), and

Hong Kong (China) (-4.5 percent).11

U.S. Balance of Payments

Position

In the foreign sector, the strengthening of domestic

demand for imports because of relatively higher rates

of U.S. economic growth led to a widening of the

1998 current account deficit.12 The U.S. current

account deficit grew to $233.5 billion in 1998 (see

table 1-2). The deficits on merchandise trade and

investment income were partially offset by the surplus

on services. The U.S. deficit on income from foreign

investment grew in 1998 as payments on foreign assets

in the United States of $265.1 billion surpassed

receipts from U.S. assets abroad of $242.6 billion. Net

flows of foreign capital into the United States declined

from the previous year to $237.1 billion in 1998.

The U.S. surplus on services trade declined to

$78.9 billion. U.S. total services trade (exports plus

imports) reached about $441.9 billion in 1998. U.S.

exports of services in 1998 totaled $260.4 billion;

imports rose to $181.5 billion. The U.S. deficit on

goods and services grew by approximately $59 billion

to $169.1 billion in 1998.

U.S. Merchandise Trade in

1998

The United States ranked as the world’s largest

merchandise exporter, followed by Germany and

Japan. U.S. merchandise exports declined to $634.7

billion in 1998, from $643.2 billion in 1997. Imports

rose to about $907.6 billion, up from $862.4 billion in

1997. The U.S. merchandise trade deficit with the

world rose to $272.9 billion in 1998, from $219.2

billion in 1997. The majority of U.S. exports consisted

of manufactured goods, which accounted for about

72.3 percent of total U.S. exports in 1998. Chemicals

accounted for 10.7 percent of exports, and all other

goods 17.0 percent. The majority of U.S. imports were

manufactured goods (76.4 percent), chemicals (6.2

percent), and all other goods (17.4 percent) (figure

1-3).

11 OECD World Economic Outlook , vol. 64, Dec. 1998,

p. 125.

12 U.S. Department of Commerce, Bureau of Economic

Analysis, BEA 99–07, U.S. International Transactions,

Fourth Quarter and Year, 1998.
16

Table 1-2

U.S. trade and current account balances, 1997-98

(Billion dollars)

1997 1998

Merchandise exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 679.3 671.1

Merchandise imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -877.3 -919.0

Balance on merchandise trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -198.0 -248.0

Services exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258.3 260.4

Services imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -170.5 -181.5

Balance on services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87.8 78.9

Balance on goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -110.2 -169.1

Income receipts on U.S. assets abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241.8 242.6

Income payments on foreign assets in the United States . . . . . . . . . . . . . . -247.1 -265.1

Balance on investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -5.3 -22.5

Balance on goods, services, and income . . . . . . . . . . . . . . . . . . . . . . . . . . . -115.5 -191.6

Unilateral transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -39.7 -41.9

Balance on current account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -155.2 -233.5

U.S. assets abroad, net, outflow (–) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -478.5 -305.4

Foreign assets in the U.S., net, inflow (+) . . . . . . . . . . . . . . . . . . . . . . . . . . . 733.4 542.5

Net capital inflows (+), outflows (–) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254.9 237.1

Source: U.S. Department of Commerce, Bureau of Economic Analysis, U.S. International Transactions: Fourth

Quarter and Year 1997, BEA 98–06.

Figure 1-4 shows U.S. merchandise exports,

imports, and trade balances with major trading

partners. Leading U.S. exports to, and imports from,

major U.S. merchandise trading partners are

highlighted in the appendix. In 1998, U.S.

merchandise trade with NAFTA countries accounted

for about 31.1 percent of total U.S. exports and

imports. Of the $272.9 billion trade deficit in 1998,

NAFTA accounted for $54.6 billion, of which Canada

accounted for $36.9 billion and Mexico $17.6 billion.

The U.S. trade deficit with Japan was $66.4 billion,

followed by China ($56.9 billion), the EU ($34.7

billion), Taiwan ($16.1 billion), and Korea ($7.7

billion). The U.S. trade deficit with Japan and China

combined totaled $123.3 billion, or about 45.2 percent

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

In 1998, total U.S. exports and imports of goods

grew by about 2.4 percent over a year earlier. U.S.

exports to Mexico rose by 10.2 percent, while exports

to Canada rose by 2.2 percent. U.S. exports to the

Pacific Rim declined by 14.5 percent, while exports to

South and Central America and to OPEC grew slightly.

U.S. exports to Japan declined, and U.S. exports to

Taiwan grew slightly.

World Trade

The United States ranked as the world’s largest

merchandise exporter in 1998, followed by Germany

and Japan. World trade in goods and services grew at a

faster rate than world output in 1998. According to

IMF forecasts,13 the volume of world trade in goods

and services is estimated to have grown by 3.7 percent

in 1998, a sharp decline from the 9.7 percent growth

recorded in 1997. Trade growth in 1998 outstripped

the 2.0 percent growth in world output.

13 IMF, World Economic Outlook, Oct. 1998, p. 20, 

table 2.1.
17



































































Other

Figure 1-3

U.S. merchandise trade with the world, by product sectors, 1998

U.S. Exports

Note.—Because of rounding, figures may not add up to the totals shown. Exports are domestic exports, f.a.s. Imports

are imports for consumption, customs value.

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

Manufactures

Food

Chemicals

Other

Food

U.S. Imports

Fuel/raw material

$24.3 (3.8%)

Chemicals

Manufactures Fuel/raw material

(Billion dollars)

4

$458.9

(

(72.3%) $38.7 (6.1%)

$44.8 (7.1%)

$68.0 (10.7%)

$694.4 (76.4%)

$38.9 (4.3%)

$77.7 (8.6%)

$40.7 (4.5%)

$56.0 (6.2%)
18

Figure 1-4

U.S. merchandise exports, imports, and trade balance with major trading partners, 1998

(census basis)



































































–400

–200

0

200

400

600

800

1000

Canada EU 15 Japan Mexico China Taiwan Korea World

Major trading partners

Billion dollars

EU (15) $140.2 $174.9 $-34.7

Canada 137.8 174.7 36.9

Japan 54.9 121.3 -66.4

Mexico 75.4 93.0 -17.6

China 13.9 70.8 -56.9

Taiwan 16.9 33.0 -16.1

Korea 16.0 23.7 -7.7

World 634.7 907.6 -272.9

Exports Imports Trade balance

 Exports

Imports

Trade Balance

Billion dollars

Source: U.S. Department of Commerce statistics.
19

CHAPTER 2

Selected Trade Activities in the WTO

and OECD in 1998

This chapter reviews selected activities of the

World Trade Organization (WTO) and the Organization for Economic Cooperation and Development

(OECD) in 1998. The WTO is the principal

multilateral body overseeing the negotiation and implementation of, as well as settlement of disputes

regarding, international trade agreements. The WTO

had 133 Members at the end of 1998, reaching 134 by

February 1999. The OECD is the primary forum for

the discussion of common economic and social issues

faced by the 29 leading industrialized democracies of

Asia, Europe, and North America. In 1998, activity in

the WTO continued implementation of the Uruguay

Round Agreements, focusing in part on the “built-in

agenda” embedded in many of the agreements that

mandates new trade negotiations to begin in 2000, as

well as implementation reviews in others. During 1998,

WTO members also continued discussion of subjects

adopted under work programs at the first Ministerial

Conference held in Singapore in December 1996, as

well as at the second Ministerial Conference held in

May 1998 in Geneva,which marked the 50th anniversary of the GATT multilateral trade system.1

The growing number of dispute cases brought

under WTO rules during 1998 continued to be widely

seen as indicating members’ support—both developing

and developed countries—for the multilateral

dispute-settlement system. Two new members were

cleared for accession in 1998, with one (the Kyrgyz

Republic) joining in December 1998 and the other

(Latvia) joining in February 1999, once their domestic

1 The present multilateral trading system arose out of the

1947-48 United Nations Conference on Trade and

Employment, held in November 1947 in Havana, and gave

rise to the General Agreement on Tariffs and Trade (GATT),

which entered into force in 1948. The GATT continued until

the end of 1994, when the WTO took over as the successor

organization overseeing the world trading system by

implementing a revised version of the General Agreement.

The original General Agreement has since been dubbed

GATT 1948 to distinguish it legally from the revised version

implemented by the WTO, dubbed GATT 1994.

ratification was notified to the WTO. These new

accessions raised WTO membership to 133 and 134,

respectively. Accession negotiations continued for

about 30 other applicants.

World Trade Organization

(WTO)

Uruguay Round and Additional

Work Programs

The Uruguay Round Agreements entered into force

in January 1995, including those agreements with

provisions that extended negotiations on trade in

services that had not been completed by the end of the

Uruguay Round negotiations in December 1993. The

Uruguay Round Agreements also include provisions

that mandate future negotiations for several areas,

notably agriculture, services, and government

procurement. They also mandate implementation

reviews of a number of the various agreements—such

as textiles, sanitary and phytosanitary measures, and

technical barriers to trade—that collectively have come

to be known as the “built-in agenda,” so-called because

these provisions are embedded in various places in

different Uruguay Round Agreements.

In addition to mandated negotiations and reviews

under the built-in agenda, members have undertaken

additional work programs adopted at the first WTO

ministerial conference held in December 1996, and at

the second Ministerial Conference, held in May 1998.

At the First Ministerial conference, members agreed to

negotiate an Information Technology Agreement

(ITA); to hold a high-level meeting on how to improve

the provision of technical assistance to the

least-developed country members; and to begin an

examination of how multilateral trade rules interact

with the areas of competition policy, investment, and
20

transparency in government procurement.2 At their

second Ministerial Conference, members added

electronic commerce, or “e-commerce,” to their work

agenda. In addition, on May 19, 1998, the conference

marked the celebration of the 50th anniversary of the

multilateral trading system.

Extended Services Negotiations

Following the conclusion of the Uruguay Round,

negotiations continued on a number of individual

service sectors: the movement of natural persons

supplying services, financial services, basic telecommunications services, and maritime transport

services.3 Whereas negotiations on the labor services

of natural persons were concluded shortly following

the Uruguay Round, and those on maritime transport

services were postponed until 2000 when mandated

services negotiations are scheduled, those on financial

services and basic telecommunications have finally

been concluded in recent years.

Agreement on Basic

Telecommunications

The Agreement on Basic Telecommunications

entered into force on February 5, 1998. Negotiators

had concluded a framework agreement on basic telecommunications in December 1996 and negotiations

were completed in February 1997 with acceptance of

national schedules of commitments, followed by the

agreement’s entry into force in February 1998. The

telecommunications agreement was concluded by 69

countries and covers nearly 93 percent of total

domestic and international revenue generated annually

in this sector, worth approximately $600 billion.4

Agreement on Financial Services

In 1998, WTO members continued efforts to ratify

the Agreement on Financial Services, which was

2 For further detail, see USITC, The Year in Trade:

Operation Trade Agreements Program (OTAP) 1996, USITC publication 3024, May 1998, pp. 15-27.

3 Negotiations on air transport services were concluded

during the Uruguay Round, although excluding such critical

elements as air traffic rights and directly related activities.

4 WTO, “WTO telecoms deal will ring in the changes on

5 February 1998,” PRESS/87, Jan. 26, 1998. For further

detail, see USITC, The Year in Trade: OTAP 1996, USITC

publication 3024, Apr. 1997, pp. 36-39; The Year in Trade:

OTAP 1997, USITC publication 3103, May 1998, p. 25.

Formally, the Agreement on Basic Telecommunications is

entitled the Fourth Protocol to the General Agreement on

Trade in Services (GATS).

concluded in December 1997 and entered into force on

March 1, 1999. Negotiators had concluded an interim

agreement on financial services in July 1995 and

further completed negotiations on a permanent

standing agreement under the GATS in December

1997. The Agreement on Financial Services includes

improved market-opening commitments by 70

governments, plus the European Commission, and

covers 95 percent of the global financial services.5

Built-in Agenda

In addition to the services negotiations that

extended beyond the December 1993 conclusion of the

1986-93 multilateral trade negotiations, a number of

the Uruguay Round Agreements contain provisions

calling for review of the operation and implementation

of a particular agreement, a review that might take

place on an annual, biennial, or triennial basis, and so

on. The agreements concerning textiles, sanitary and

phytosanitary measures, and technical barriers to trade,

for example, were reviewed in 1998 regarding various

stages of their agreements. Such review can be tantamount to new negotiations, in which “clarification” or

discussion of “improvement” of the provisions of an

agreement can presage issues likely to arise in future

negotiations.

Moreover, several of the Uruguay Round

Agreements contain provisions that call explicitly for

new negotiations regarding a particular agreement,

negotiations largely scheduled to begin in 2000. The

“mandated” negotiations widely cited as most

important include the agreements involving agriculture

and services, as well as negotiations concerning

government procurement. The provisions calling for

both implementation reviews as well as mandated

negotiations constitute the “built-in” agenda, so called

because these provisions are embedded in various

articles of particular agreements.

Mandated negotiations

During 1998, WTO members turned to

preparations for the negotiations mandated under the

Uruguay Round Agreements’ built-in agenda.

Agriculture. Article 20 (Continuation of the

Reform Process) of the WTO Agreement on

Agriculture calls for new agriculture negotiations,

saying that “members agree that negotiations for

5 WTO, “The WTO’s financial services commitments

will enter into force as scheduled,” PRESS/120, Feb. 15,

1999. Formally, the Agreement on Financial Services is

entitled the Fifth Protocol to the General Agreement on

Trade in Services (GATS). For further detail, see USITC,

The Year in Trade: OTAP 1997, USITC publication 3103,

May 1998, pp. 17-25.
21

continuing the process will be initiated one year before

the end of the implementation period,” meaning the

end of “the six-year period commencing in the year

1995,” that being one year before December 31, 2000.6

In 1998, members continued to prepare for future

agricultural negotiations through the Analysis and

Information Exchange (AIE) process, set up following

the Singapore Ministerial Conference to identify

significant trade distortions in agriculture and to collect

data needed for negotiating decisions. Ministers are

expected to agree on the scope, modalities, and time

frames for the negotiations at the third WTO

Ministerial Conference to be held in November 1999 in

the United States.7

Services. Article XIX (Negotiation of Specific

Commitments) of the WTO General Agreement on

Trade in Services (GATS) calls for new services

negotiations, saying that “Members shall enter into

successive rounds of negotiations, beginning not later

than five years from the date of entry into force of the

WTO Agreement and periodically thereafter, with a

view to achieving a progressively higher level of

liberalization.” In 1998, the GATS Council completed

its process of exchanging information about service

sectors8 in preparation for the mandated negotiations in

2000. This exchange produced a broad and useful base

of information on the nature and importance of trade in

services in these sectors, the evolution of new or newly

tradable services, the scope of existing commitments,

and issues requiring further attention.

Government Procurement. Further negotiations to

improve the WTO plurilateral Agreement on

Government Procurement and extend its coverage were

specified in the Uruguay Round Agreements which

were to begin in 1997.9 In February 1997, informal

6 The Agriculture Agreement operates under a 6-year

implementation period, rather than the standard 5-year one

for other agreements, from the January 1, 1995,

establishment of the World Trade Organization and entry

into force of the Uruguay Round Agreements.

7 Office of the U.S. Trade Representative, “Preparations

for the 1999 WTO Ministerial General Council Discussion

on Mandated Negotiations and the Built-In Agenda,” Trade

Policy Staff Committee Draft Document 1998-119, Nov. 16,

1998, p. 2.

8 Accounting, advertising, architecture and engineering,

audiovisual, computer, construction and engineering, courier,

distribution, education, energy, environmental, financial,

health and social, legal, postal, telecommunications, tourism

and travel-related, and transportation (air, rail, road, and sea)

services.

9 A plurilateral agreement is binding only on those

signatories undertaking its additional rights and obligations,

in contrast to the multilateral Uruguay Round Agreements

that are all binding on all WTO members.

consultations on these negotiations began with a

review of efforts to simplify and improve the

agreement through exploration of possible electronic

tendering, expansion of the agreement’s coverage, and

elimination of discriminatory measures and practices

that distort open procurement. In June 1998,

signatories agreed on a time frame and work program

for negotiations mandated under Article XXIV:7 of the

agreement.10 This plan envisions–

 Negotiating proposals no later than the end of

April 1999.

 A negotiating document reflecting all

outstanding proposals no later than the summer

of 1999, as a basis for the final negotiating

phase.

 Target completion of negotiations by the third

WTO Ministerial Conference in November

1999 (at least for simplification and

improvement of the agreement).

 Parallel work on amending the agreement to

permit the negotiated (1) elimination of

discriminatory measures and practices that

distort open procurement and (2) expansion of

the agreement’s coverage, also with a target

date of the third Ministerial Conference.

 Three meetings in the first part of 1999 (e.g.,

February, May, and July).

 Semicontinuous negotiations in autumn 1999.

Implementation reviews

Many of the Uruguay Round Agreements set out

dates or time periods that specify continuing review or

negotiations of certain subject areas. Agreements

setting out reviews under the built-in agenda for 1998

included the following:

 The Agreement on Sanitary and Phytosanitary

Measures (SPS) calls for review of the

operation and implementation of the

Agreement by 1998.

10 WTO, Committee on Government Procurement,

Report (1998) of the Committee on Government

Procurement, GPA/25, Oct. 30, 1998, found at Internet

address http://www.wto.org/wto/govt/repgp.htm, retrieved

March 16, 1999.
22

 The Agreement on Technical Barriers to Trade

(TBT, also called “standards”) calls for review

of the operation and implementation of the

Agreement by 1998.

 The Agreement on Anti-Dumping Practices11

contains a “standard of review” under Article

17.6, scheduled to be reviewed after a period of

three years (i.e., after 1997) to consider general

applicability of the standard.12

 The General Agreement on Trade in Services

(GATS) calls for multilateral negotiations on

emergency safeguard measures, the results of

which were to become effective not later than

1997. However, WTO members have expressed

differing views about the desirability of

developing such a safeguard mechanism under

the GATS, and discussions continue on the

subject with the aim of concluding negotiations

by June 30, 1999.13 An opportunity to further

address this issue will arise in the services

negotiations slated to begin in 2000 under the

broader round of multilateral trade

negotiations.

 The Agreement on Trade-Related Aspects of

Intellectual Property Rights (TRIPS) calls for

further negotiations starting in 1998, with a

view to broadening and improving the

Agreement on the basis of mutual reciprocity.

 The Dispute Settlement Understanding (DSU)

calls for full review of dispute-settlement rules

and procedures.14

11 Formally entitled “Agreement on Implementation of

Article VI of the General Agreement on Tariffs and Trade

1994.”

12 WTO, Decision on Review of Article 17.6 of the

Agreement on Implementation of Article VI of the General

Agreement on Tariffs and Trade 1994, Uruguay Round

Agreements, Apr. 15, 1994, Geneva, p. 402.

13 WTO, Council for Trade in Services, Report to the

General Council on Activities During 1998, S/C/6, Dec. 7,

1998, found at Internet address

http://www.wto.org/wto/online/ddf.htm, retrieved March 16,

1999.

14 WTO, “Press Pack - Built-in Agenda,” Second

Ministerial Conference of the World Trade Organization,

Geneva, 18 & 20 May 1998, found at Internet address

http://www.wto.org/wto/anniv/press.htm, retrieved May 19,

1998; Office of the United States Trade Representative,

“WTO Built-In Agenda Time frames,” Briefing Book to the

Delegation of the United States of America to the Singapore

Ministerial Conference, Dec. 9-13, 1996.

1996 Singapore Ministerial Work

Program

The first WTO Ministerial Conference was held in

Singapore in December 1996. The ministers’ top

priority was the full and effective implementation of

the Uruguay Round Agreements, including fulfilling

the requirements of the built-in agenda and, most

particularly, concluding the extended services

negotiations. Beyond the issue of implementation,

ministers (1) proposed tariff initiatives that led to the

Information Technology Agreement (ITA), (2) agreed

to a process aimed at better integrating the

least-developed country members into the multilateral

trading system, and (3) launched additional work on

some of the “new” trade issues facing the world

economy. The latter was prompted by economic

globalization that led to calls from ministers for an

examination of the relationship of multilateral trade

rules to investment, to competition policy, and to

government procurement.15

Information technology

In 1997, 39 participants concluded an Information

Technology Agreement (ITA), as agreed at the WTO

Singapore Ministerial Conference in December 1996.

The ITA entered into force on July 1, 1997, covering

nearly 95 percent of world trade in information

technology products.16 The information technology

sector accounts for roughly $1 trillion in global

production and $500 billion in trade flows,17 with 43

signatories participating in the agreement. In most

cases, tariffs will be eliminated on these products by

2000. ITA participants agreed to complete negotiations

during 1998 to expand coverage and implement these

results beginning in 1999.

In January 1998, most participants announced their

readiness to begin negotiations on an “ITA II” that

would extend coverage more fully into information

technology products such as computer-based scientific

and analytical equipment, global positioning systems,

and related inputs and manufacturing equipment. China

had also pledged in November 1997 to participate in

the ITA as part of its accession negotiations. However,

on July 17, 1998, participants suspended ITA II talks,

15 For further detail, see USITC, The Year in Trade:

OTAP 1996, USITC publication 3024, Apr. 1997, pp. 15-27.

16 For further detail, see USITC, The Year in Trade:

OTAP 1996, USITC publication 3024, Apr. 1997, pp. 20-23;

The Year in Trade: OTAP 1997, USITC publication 3103,

May 1998, p. 25.

17 USTR, “U.S. Ready to Lead in ‘ITA II’ Negotiations

to Expand Sweeping Information Technology Trade

Agreement,” press release 98-07, Jan. 27, 1998, p. 2.
23

being unable to reach consensus on a package of

products to negotiate.18

On October 23, 1998, participants resumed

intensive negotiations to conclude an ITA II.19 On

December 11, 1998, the Committee of Participants on

the Expansion of Trade in Information Technology

Products (ITA Committee) met to decide on a package

of additional products for tariff elimination that

constitutes the ITA II.20 The ITA Committee

considered a revised ITA II draft agreement to annex

20 products that provides for tariff elimination in four

equal steps, beginning on July 1, 1999, with complete

elimination of customs duties by January 1, 2002. The

draft also recognizes that extended staging of

reductions, if necessary in limited circumstances,

would be no later than January 1, 2007.

The ITA Committee agreed at the December 1998

meeting to resume negotiations in the week of

February 22, 1999.21 The 44 participants involved in

the ITA II negotiations by the start of 1999 included

Australia, Canada, Costa Rica, Czech Republic, the

individual members of the EU-15, El Salvador,

Estonia, Hong Kong (China), Iceland, India, Indonesia,

Israel, Japan, Korea, Liechtenstein, Macau, Malaysia,

New Zealand, Norway, Panama, Philippines, Poland,

Romania, Singapore, Slovak Republic, Switzerland,

Chinese Taipei (Taiwan), Thailand, Turkey, and the

United States. At the December 1998 meeting, 35

participants22 indicated that they could accept the

current ITA II draft. India and Malaysia said that they

could not, the former because security-related products

were on the list, the latter because the products that it

had requested were not on the list and so its

government could not agree without substantial

changes to the product list. El Salvador and the

Philippines said that they needed more time to

18 WTO, “ITA II talks suspended,” PRESS/110, July 17,

1998.

19 WTO, “Participants agree to give final push to ITA II

talks,” Oct. 29, 1998, found at Internet address

http://www.wto.org/wto/new/itaweb.htm, retrieved Dec. 11,

1998.

20 WTO, “Final ITA II package to be considered on 11

December,” Nov. 27, 1998, found at Internet address

http://www.wto.org/wto/new/itaprx.htm, retrieved Dec. 12,

1998.

21 WTO, “Participants agree to resume ITA II talks in

February 1999,” Dec. 14, 1998, found at Internet address

http://www.wto.org/wto/new/ita2pr.htm, retrieved Dec. 14,

1998.

22 Australia, Canada, Costa Rica, Czech Republic,

EU-15 and its members individually, Estonia, Hong Kong

(China), Iceland, Israel, Japan, Korea, Liechtenstein,

Norway, Poland, Romania, Singapore, Slovak Republic,

Switzerland, Turkey, and the United States. Chinese Taipei

and Estonia are not WTO members, but are in the process of

accession.

consider. The ITA committee also agreed to continue

its work program to (1) ensure that nontariff measures

do not impede the free flow of information technology

products, particularly in work in the area of standards;

and (2) consult on divergences in classifying IT

products, particularly in work underway on

semiconductor manufacturing and testing equipment

and on printed circuit or wiring board manufacturing

equipment.

Working Group on Investment

The mandate for the Working Group on

Investment, established for 2 years following the

Singapore Ministerial Conference, was renewed by the

WTO General Council in December 1998 to continue

its work. Since its establishment, the group has drawn

up and advanced through a checklist of discussion

items.23 One major item has been the implications of

the relationship between trade and investment for

development and economic growth. A second has been

a stocktaking and analysis of existing international

instruments and activities regarding trade and

investment. One point made by the WTO Secretariat

regarding investment’s impact on development and

economic growth has been that studies suggest that

more inward foreign direct investment (FDI) leads to

higher export growth and that countries with more

liberal trade regimes attract greater FDI on the average.

Some members of the group believe that its future

efforts should address a multilateral framework that

would integrate the most common features of bilateral

investment agreements to help bolster WTO rules in

the area of investment. Other members believe that the

group should continue to focus on the many issues

raised by members.24

Working Group on Trade and

Competition Policy

The mandate for the Working Group on Trade and

Competition Policy, established for 2 years following

the Singapore Ministerial Conference, was renewed by

the WTO General Council in December 1998 to

continue its work. Like the trade and investment group,

the trade and competition group has drawn up a

checklist of discussion items.25 Examining the

23 For further detail, see USITC, The Year in Trade:

OTAP 1997, USITC publication 3103, May 1998, pp. 41-43.

24 WTO, “Press Pack - Progress on Singapore

Initiatives,” Second Ministerial Conference of the World

Trade Organization, Geneva, 18 & 20 May 1998, found at

Internet address http://www.wto.org/wto/anniv/press.htm, retrieved May 19, 1998.

25 For further detail, see USITC, The Year in Trade:

OTAP 1997, USITC publication 3103, May 1998, pp. 41-43.
24

objectives, principles, concepts, scope, and instruments

of trade and competition policy, the group focused on

the commonalities of economic efficiency and consumer welfare between trade and competition policy. A

central function of the multilateral trade rules is to

ensure equality of competitive opportunities for WTO

members. However, some members consider that

certain trade policy instruments such as antidumping

and countervailing duty measures are inconsistent with

the goals of competition policy. With respect to the

relationship of trade and competition policy to

development and economic growth, the group emphasized the role that competition policy plays to

prevent practices that hinder efficient functioning of

markets, to reinforce benefits that flow from privatization and deregulation, and to help attract foreign

investment.26 Taking stock of existing in- struments

and activities in this area, a number of members

stressed that competition policy has formed an

important component of their development strategies,

in particular, as a complement to trade liberalization.

The group has begun to compile a list of broad specific

practices—such as price fixing, establishment of

international cartels, market sharing, or monopolistic

action—that may reduce the benefits of international

trade liberalization efforts. The identification of such

practices could form the basis for further efforts

designed to minimize their trade-restricting effects.

Working Group on Transparency in

Government Procurement

The Singapore Ministerial Conference called for

the establishment of the Working Group on Transparency in Government Procurement. During 1998,

this working group continued its work, receiving

information from organizations and members regarding

their national procedures and practices on government

procurement.

1998 Ministerial Work Program

The Declaration on Global Electronic Commerce

was adopted May 20, 1998, by members at the second

Ministerial Conference held in Geneva, May 18 and

20, 1998.27 The work program will examine all

trade-related issues relating to global electronic

26 WTO, “Press Pack - Progress on Singapore

Initiatives,” Second Ministerial Conference of the World

Trade Organization, Geneva, 18 & 20 May 1998, found at

Internet address http://www.wto.org/wto/anniv/press.htm,

retrieved May 19, 1998.

27 WTO, Ministerial Conference, Declaration on Global

Electronic Commerce, Adopted on 20 May 1998, WT/MIN(98)/DEC/2, Geneva, May 25, 1998.

commerce (e-commerce), taking into account the

economic, financial, and development needs of

developing countries, as well as recognizing work

being undertaken in other international forums. Related

work on electronic commerce is being carried out, for

example, by the OECD. The WTO General Council is

to produce a progress report on e-commerce for the

third Ministerial Conference.

Dispute Settlement

In 1998, dispute-settlement cases brought under

WTO rules surpassed 100 distinct matters since the

beginning of the WTO integrated dispute-settlement

system. During the year, several major cases completed

the appeals stage, including Appellate Body reports

concerning the case against the European Union

(EU)28 regarding hormones in meat and meat products,

the EU banana import regime, and a U.S. import

prohibition on shrimp and shrimp products. In

addition, a growing feature of the dispute-settlement

system appears to be the use of arbitrators’ reports to

help determine the period of time permitted for

carrying out the recommendations made by panel or

Appellate Body reports. By the end of 1998,

arbitrators’ reports were issued concerning

implementation in cases involving Indonesian

measures affecting the automobile industry, EU

measures concerning hormones in meat and meat

products, Japanese taxes on alcoholic beverages, and

the EU banana import regime. The WTO web site

provides a timely source for the status of pending

dispute cases and case decisions.29

Panel Reports

In 1998, panel reports were adopted for two cases

that involved multiple complainants: one concerning

the Indonesian automotive sector and its so-called

national car, brought by the EU, Japan, and the United

States, and another concerning India’s so-called

mailbox or patent notification provisions under the

28 The Commission of the European Communities is the

official representative in trade matters for the member states

of the European Union, leading at times to the

interchangeable use of the abbreviation EC and EU,

particularly with regard to trade or legal matters such as

trade dispute settlement. Since the 1957 Treaty of Rome, the

accession of new members has also given rise to the

informal designation of the number of member states at a

given time, such as the original EC-6 membership or,

following the most recent enlargement on January 1, 1995,

the EU-15. Prior to the 1995 Treaty of European Union (the

“Maastricht Treaty”), country members belonged to the

European Communities (EC), whereas after the Maastricht

Treaty members, consider themselves part of the European

Union (EU).

29 It may be found at Internet site

http://www.wto.org/wto/dispute/bulletin.htm.
25

TRIPs Agreement, brought by the EU and the United

States. Another notable panel report that was adopted

involved a U.S. complaint against Japan regarding

measures affecting consumer photographic film and

paper.30

Appeals

In 1998, a number of cases cleared the appeals

process with the adoption of Appellate Body reports.

The case brought by Canada and the United States

against the EU regarding measures affecting meat and

meat products containing hormones was upheld in

early 1998. Several U.S. complaints against the tariff

classification of certain computer equipment in the EU,

Ireland, and the United Kingdom were also upheld.

The United States also won an appeal against

Argentina regarding footwear, but lost an appeal

brought by a number of Asian members (India,

Malaysia, Pakistan, and Thailand) on U.S. import

prohibitions of certain shrimp and shrimp products.

This case is often referred to as the “shrimp-turtle”

case because of a connection between the shrimpharvesting practices used by these countries’ fleets and

the incidental catching of sea turtles that are on the

endangered species list kept under the Convention on

International Trade and Environmental Species

(CITES). In addition, other appeals reports were

adopted involving Canada’s complaint against

Australia regarding salmon imports and Mexico’s

complaint against Guatemala regarding an antidumping

investigation about cement.

Arbitration

Both in 1997 and in 1998, use of WTO arbitration

provisions grew. Arbitration in the dispute- settlement

process typically follows a panel or Appellate Body

report when one or more complainants seeks a ruling

on how much time a party has to implement the

recommendations made in the dispute-panel report. In

1997, the complainants (Canada, the EU, and the

United States) asked for an arbitration panel to rule on

the permissible implementation period for a 1995

dispute-panel ruling on Japanese taxes on alcoholic

30 The panel report concerning photographic film and

paper was adopted April 22, 1998, with the panel reportedly

rejecting some U.S. arguments on procedural grounds,

finding that other measures cited by the United States were

never applied or were voluntary, and ruling that still others

did not adversely affect competitive conditions for foreign

suppliers. In a related dispute, consultations were held in

July and November 1997 regarding Japanese distribution

barriers to foreign service suppliers of photographic film and

other consumer products; the United States currently

monitors Japan’s compliance with the resolution reached

during these consultations.

beverages as administered by liquor boards. The

arbitrator’s report was issued in February 1997 and

ruled that Japan had until February 1, 1998, to

implement changes necessary to bring its taxes into

conformity with GATT rules. Because Japan failed to

implement the necessary changes within this time

frame, discussions continue on how to implement the

panel’s rulings.

In 1998, the complainants (Ecuador, Guatemala,

Honduras, Mexico, the United States) against the EU

banana regime asked for an arbitration panel to rule on

the permissible implementation period. The arbitrator’s

report was issued on January 7, 1998, giving the EU

until January 1, 1999, to bring its regime into

conformity with GATT rules.31

The complainants (Canada and the United States)

against EU measures affecting meat and meat products

involving hormones also asked for an arbitration panel

to rule on the permissible implementation period. The

arbitrator’s report was issued on May 29, 1998, giving

the EU until May 13, 1999, to bring its regime into

conformity with GATT rules. In addition, the

complainants (the EU, Japan, and the United States)

against Indonesia’s measures affecting the automotive

sector regarding its “national” car asked for an

arbitration panel to rule on the permissible

implementation period, despite adoption of the panel

report in July 1998 forgoing the appeals process. The

arbitrator’s report was issued on December 7, 1998,

giving Indonesia until July 23, 1999, to bring its

measures into conformity with GATT rules.

Selected WTO Developments

and Committee Activity

The World Trade Organization provides a

permanent forum for member governments to address

their multilateral trade relations, as well as to facilitate

the implementation of the trade agreements concluded

in the Uruguay Round. The highest authority in the

WTO structure is the Ministerial Conference, which

comprises representatives of all WTO members and is

31 Following EU failure to implement the necessary

changes within the allotted time frame, the parties to the

dispute agreed on January 29, 1999, to submit the matter to

the arbitration of the original panel. On March 2, 1999, the

arbitrators issued their initial decision that requested

additional information to help determine whether the revised

EU banana regime was consistent with its WTO obligations

or, if not, to help determine the level of suspension of

concessions. WTO, “Arbitration under Article 22.6 of the

DSU - Communication from the Arbitrators,” European

Communities – Regime for the Importation, Sale, and

Distribution of Bananas, WT/DS27/48, Mar. 2, 1999, found

at Internet address http://www.wto.org/wto/dispute/

ds27-48.htm, retrieved Mar. 16, 1999. For further details, see

chapter 4.
26

required to meet at ministerial level at least every two

years. The General Council is the highest authority

when a Ministerial Conference is not in session and so

directs the daily work of the WTO. The General

Council also convenes as the Dispute Settlement Body

(DSB), DSB Appellate Body, and the Trade Policy

Review Body (TPRB) when carrying out tasks

assigned to those areas. Three subsidiary councils,

covering the WTO multilateral agreements, answer to

the General Council: (1) the Council for Trade in

Goods (CTG), (2) the Council for Trade in Services

(GATS Council), and (3) the Council for Trade-Related

Aspects of Intellectual Property Rights (TRIPs

Council).

Membership

The Kyrgyz Republic was the only country to

accede to the WTO in 1998 and was the first economy

in transition to join the WTO from the former Soviet

Union’s Commonwealth of Independent States. The

Working Party on the Accession of Latvia also

concluded in 1998, clearing the way for Lativa’s

accession, which eventually took place in February

1999. There were 133 WTO members at the end of

1998 following accession by the Kyrgyz Republic, and

134 following Latvia’s accession. Thirty-one additional

governments have also requested WTO membership.

For each, an accession working party has been

established, and each has been granted interim

observership in the WTO. In addition to these 31

applicants, 4 other governments have been granted

WTO observer status without obligation to

join—Bhutan, Cape Verde, Ethiopia, and the Holy See

(Vatican). See table 2-1 for WTO membership, table

2-2 for WTO accession working parties, and table 2-3

for signatories to the WTO plurilateral trade

agreements.

Technical Assistance and

Multilateral Cooperation

Technical assistance contributions

In 1998, a number of WTO members made

technical assistance contributions to help better

integrate developing country members and members

with transition economies into the world trading

system through assistance aimed at overcoming

difficulties to implementation of various provisions of

the Uruguay Round Agreements. The WTO Secretariat

also continued in 1998 to expand its cooperation with

other international organizations to integrate more fully

the multilateral rules on trade with rules in related

fields.

In February 1998, Hong Kong (China) donated

$1.25 million to the WTO Trust Fund for technical

assistance to less developed economies.32 In May

1998, Switzerland made a grant of SF 1.5 million

(roughly $1 million) to the WTO to finance a multiyear

technical cooperation program for developing and

transition-economy countries, to focus largely on least

developed countries.33 The Swiss contribution aims at

helping beneficiary countries overcome difficulties in

implementing Uruguay Round Agreements—in

particular, the legal expertise needed for establishing

national legislation in areas concerning customs

evaluation, technical barriers to trade, and sanitary and

phytosanitary measures. In June 1998, the Netherlands

announced that it would fund a new WTO program for

trainees from developing countries to learn about trade

policy and development by working alongside WTO

staff members. The aim of the program is to better

integrate the developing countries into the world

trading system by expanding the institutional capacity

of these countries when trainees return home to their

ministries.34 Also in June, the WTO signed a

sponsorship agreement with the Joint Vienna Institute

in Austria to help train officials from transition

economies and developing countries by furnishing

WTO economists to the Institute to teach courses

regarding trade and trade policy.35 In December, the

United Kingdom pledged a contribution of 660,000

pounds sterling (roughly $1 million) to the WTO’s

1999 Program for Technical Cooperation to be used to

fund training and technical seminars to help developing

countries better understand their rights and obligations

within the multilateral trade system.36

32 WTO, “Donation by Hong Kong, China, to the WTO

Trust Fund,” PRESS/89, Feb. 6, 1998. In September 1995,

the Government of Norway provided funds for the

establishment of a WTO Trust Fund for the Least-Developed

Countries for use over three years (1995-97), to which other

members have made contributions since. These

contributions fund specific programs for these countries and

supplement the regular budget for the WTO Technical

Cooperation and Training Division, which administers the

Trust Fund. Also see WTO, “Technical Cooperation and

Training,” Annual Report - 1996, Geneva, 1996, pp.

154-155.

33 WTO, “Switzerland Increases Funding for WTO

Technical Cooperation Activities,” PRESS/100, May 18,

1998.

34 WTO, “The Netherlands Launch New ‘Hands-On

WTO Work’ Training Programme,” PRESS/102, June 19,

1998.

35 WTO, “WTO Signs Agreement with the Joint Vienna

Institute,” PRESS/103, June 23, 1998.

36 WTO, “Britain Pledges to Help Developing World

Benefit from Globalization,” PRESS/118, Dec. 17, 1998.
27

Table 2-1

WTO membership in 1998 (133)

Angola Ghana Nigeria

Antigua and Barbuda Greece Norway

Argentina Grenada Pakistan

Australia Guatemala Panama

Austria Guinea Papua New Guinea

Bahrain Guinea-Bissau Paraguay

Bangladesh Guyana Peru

Barbados Haiti Philippines

Belgium Honduras Poland

Belize Hong Kong (China) Portugal

Benin Hungary Qatar

Bolivia Iceland Romania

Botswana India Rwanda

Brazil Indonesia Saint Kitts and Nevis

Brunei Darussalam Ireland Saint Lucia

Bulgaria Israel Saint Vincent and the Grenadines

Burkina Faso Italy Senegal

Burundi Jamaica Sierra Leone

Cameroon Japan Singapore

Canada Kenya Slovak Republic

Central African Republic Korea Slovenia

Chad Kuwait Solomon Islands

Chile Kyrgyz Republic South Africa

Colombia Lesotho Spain

Congo Liechtenstein Sri Lanka

Congo-Democratic Republic Luxembourg Suriname

Costa Rica Macau Swaziland

Cote d’Ivoire Madagascar Sweden

Cuba Malawi Switzerland

Cyprus Malaysia Tanzania

Czech Republic Maldives Thailand

Denmark Mali Togo

Djibouti Malta Trinidad and Tobago

Dominica Mauritania Tunisia

Dominican Republic Mauritius Turkey

Ecuador Mexico Uganda

Egypt Mongolia United Arab Emirates

El Salvador Morocco United Kingdom

European Communities Mozambique United States

Fiji Myanmar/Burma Uruguay

Finland Namibia Venezuela

France Netherlands+N.Antilles Zambia

Gabon New Zealand Zimbabwe

Gambia (The) Nicaragua

Germany Niger

Source: WTO, “Members,” found at Internet site http://www.wto.org/wto/about/organsn6.htm, retrieved Dec. 29, 1998.
28

Table 2-2

WTO accession working parties in 1998 (31)

Albania Georgia Samoa

Algeria Jordan Saudi Arabia

Andorra Kazakhstan Seychelles

Armenia Laos Sudan

Azerbaijan Lebanon Tonga

Belarus Lithuania Ukraine

Cambodia Macedonia Uzbekistan

China Moldova Vanuatu

Chinese Taipei Nepal Vietnam

Croatia Oman

Estonia Russian Federation

Source: WTO, “Members,” found at Internet site http://www.wto.org/wto/about/organsn6.htm, retrieved Dec. 29, 1998.

Table 2-3

Signatories to the WTO Plurilateral Trade Agreements in 1998

Agreement on Government Procurement

Aruba Korea

Canada Liechtenstein

EC-15 Norway

Hong Kong (China) Singapore

Israel Switzerland

Japan United States

Note.–Chinese Taipei (Taiwan) and Panama are in the process of acceding to the agreement.

Agreement on Trade in Civil Aircraft

Austria Luxembourg

Belgium Macau

Bulgaria Netherlands

Canada Norway

Denmark Portugal

EC Romania

Egypt Spain

France Sweden

Germany Switzerland

Ireland United Kingdom

Italy United States

Japan

Note.–Greece is a signatory to the agreement whose ratification is pending.

Source: WTO, Committee on Government Procurement, Report (1998) of the Committee on Government

Procurement, GPA/25, Oct. 30, 1998; WTO, Report (1998) of the Committee on Trade in Civil Aircraft, WT/L/291,

Dec. 3, 1998.
29

Cooperation with the Office

International des Epizooties

In May 1998, the WTO exchanged letters of

cooperation with the Office International des

Epizooties (OIE), based in Paris, France. The OIE was

created in 1924 to establish recommendations and

guidelines for the regulation of trade in animals and

their products so as to minimize diseases that affect

large groups of animals. The OIE currently has 151

members. The exchange formalizes cooperation

between the WTO Agreement on the Application of

Sanitary and Phytosanitary Measures—which

establishes rules for human, animal, and plant health

measures that affect international trade—and the

OIE—which establishes international standards

concerning animal health and disease that is

transmissible to humans.37

Selection of WTO Director-General

During 1998, discussions opened regarding the

successor to Renato Ruggiero, the first WTO

Director-General, whose term ends in April 1999. Four

candidates had emerged by the close of nominations on

October 1, 1998: Hassan Abouyoub of Morocco, Roy

MacLaren of Canada, Mike Moore of New Zealand,

and Supachai Panitchpakdi of Thailand. WTO

members have agreed to identify the new

Director-General by consensus and, by the end of

1998, Mike Moore and Dr. Supachai were considered

the front runners. The Rt. Hon. Mike Moore, M.P., has

been prime minister of New Zealand and has served in

a number of government trade and finance posts and as

a member of Parliament. H.E. Dr. Supachai has held

the post of deputy prime minister of Thailand, as well

as serving in a range of government and finance

positions.38

Organization For Economic

Cooperation and

Development (OECD)

In 1998, discussions continued in the OECD on

how to conclude negotiations over the Multilateral

Agreement on Investment (MAI). The OECD work

program also began to review individual national laws

and regulations related to the 1997 OECD bribery

37 WTO, “WTO and the Office International des

Epizooties sign cooperation agreement,” PRESS/99, May 4,

1998.

38 WTO, “Candidates for WTO Post,” Focus, No. 33,

Aug.-Sept. 1998, p. 3.

convention and the 1997 report to ministers on

regulatory reform. Regarding a recent addition to the

OECD work program, discussion began regarding

barriers and solutions to electronic commerce.

Multilateral Agreement on

Investment

At the OECD ministerial meeting, held in Paris on

April 27 and 28, 1998, ministers received a Report by

the Chairman of the Negotiating Group on the

Multilateral Agreement on Investment (MAI). In May

1995, ministers had requested that the OECD

undertake negotiations aimed at reaching a multilateral

agreement on investment. Negotiators made rapid

progress in the first two years, developing an overall

framework of disciplines, but slowing since then over

discussion of national reservations and other

exceptions or exemptions. The initial deadline for

reaching an agreement was extended from May 1997

to April 1998.39

At the April 1998 meeting, ministers issued a

statement directing negotiators “to continue their work

with the aim of reaching a successful and timely

conclusion of the MAI and seeking broad participation

in it.”40 Ministers have undertaken since then a period

of assessment and further consultation between the

negotiating parties, as well as with interested parts of

their societies, with the assistance of the OECD

Secretary-General. The ministers’ statement indicated

that they are seeking “to complete work on MAI

disciplines and exceptions with a view to achieving a

high standard of liberalisation and a satisfactory

balance of commitments, which takes full account of

economic concerns and political, social and cultural

sensitivities.” The ministers also recognized the need

for a solution to the issue of extraterritoriality, as well

as seeing an increased convergence of views to address

environmental protection and labor issues in the MAI

so that governments will not lower standards in these

areas to attract or retain investment.

The chairman’s report said that a high level

meeting was held February 16-17, 1998, where parties

confirmed the fundamental importance of an effective

dispute-settlement mechanism in the MAI. The parties

confirmed strong support for both the state-to-state and

investor-to-state modes of dispute settlement in the

agreement, although some issues are still outstanding.

Some delegations have concerns about investor-to-state

dispute settlement during the preestablishment phase of

39 For further detail, see USITC, The Year in Trade:

OTAP 1997, USITC publication 3103, May 1998, pp. 48-51.

40 OECD, “Ministerial Statement on the Multilateral

Agreement on Investment (MAI),” Paris, Apr. 28, 1998.
30

investment. A solution to other issues discussed at the

February meeting also seems necessary before MAI

negotiations can be concluded successfully. These

issues include conflicting requirements under the MAI,

secondary investment boycotts, and illegal

expropriations.41

On October 20 and 22, 1998, senior officials

constituting the OECD Executive Committee in

Special Session (ECSS) met for informal consultations

regarding investment matters.42 They confirmed that

MAI negotiations are no longer taking place, although

all agreed on the importance of the multidisciplinary

work on investment taking place at the OECD. The

officials recognized that there are important issues that

require further analytical work, as well as

intergovernmental cooperation. In December 1998, the

officials held an informal seminar at the OECD in Paris

with the Business and Industry Advisory Committee

(BIAC) and the Trade Union Advisory Committee

(TUAC), as well as other nongovernmental

organizations. In addition to OECD member countries,

five nonmembers have participated as observers in the

Negotiating Group: Argentina, Brazil, Chile, Hong

Kong, and the Slovak Republic. The Baltic countries

have been working closely with the Negotiating Group,

and a number of other countries have also expressed

interest in participation in the MAI.43

Bribery Convention

In November 1997, OECD member states adopted

the Convention on Combating Bribery of Foreign

Public Officials in International Business Transactions,

as well as endorsing the 1997 Revised

Recommendation on Combating Bribery in

International Business Transactions. The convention is

the most recent in a series of measures pursued by the

United States and its major trading partners to address

the problem of bribery and corruption and its effects on

the world economy and commerce.44 Negotiators

41 OECD, “Multilateral Agreement on Investment -

Report by the Chairman of the Negotiating Group,” Apr. 28,

1998, found at Internet site

http://www.oecd.org/daf/cmis/mai/repor98.htm, retrieved

Jan. 7, 1999.

42 OECD, “Informal Consultation on International

Investment - Press release 3 December 1998,” Dec. 3, 1998,

found at Internet site

http://www.oecd.org/daf/cmis/ii/index.htm, retrieved Jan. 7,

1999.

43 OECD, Main Features of the Multilateral Agreement

on Investment (Note by the Chairman), DAFFE/MAI(98)4,

Feb. 5, 1998, p. 3.

44 For further detail, see USITC, The Year in Trade:

OTAP 1997, USITC publication 3103, May 1998, pp. 51-53.

originally set a deadline for ratification of the

convention by the end of 1998. Although most

governments completed their internal procedures

needed to draft such legislation during 1998, only

Bulgaria, Hungary, Japan, Iceland, and the United

States had deposited their notification of ratification or

ratified the convention pending implementing

legislation by year-end.

The OECD Working Group on Bribery agreed in

1998 to monitor implementation of the convention and

the 1997 revised recommendation in two phases. In

phase one, the group will evaluate whether the national

legal texts implementing the convention meet the

standard set by the convention. In phase two, the group

will assess each country’s ability to enforce, and its

practical application of the laws put in place to

implement the convention, as well as monitoring

implementation of the noncriminal aspects of the 1997

revised recommendation. The group is expected to

begin its consultations with each country regarding

phase one starting in 1999. Regarding phase two, the

group will start in the latter half of 2000, aiming to

finish a full cycle of examinations for all participants

before 2005.

In 1998, the group also agreed to examine a

number of further issues concerning bribery acts in

relation to foreign political parties and candidates for

public office, bribery of foreign public officials as a

predicate offense when touching on money-laundering

legislation, and the role of foreign subsidiaries and

offshore centers in bribery transactions.45

Regulatory Reform

In 1997, the OECD presented to members a report

on regulatory reform.46 Based on the report, OECD

member countries agreed in March 1998 on a

framework for country reviews to assess progress made

on regulatory reform in sectors such as electricity and

telecommunications, as well as in cross-sectoral areas

such as the quality of public-sector decisions,

competition policy and enforcement, and the

integration of market openness principles into the

process of regulation development. The first set of

reviews were launched in 1998, assessing Japan,

Mexico, the Netherlands, and the United States. The

second set—examining Denmark, Korea, Spain, and

another country to be identified—is expected to be

launched in early 1999 and scheduled for completion

in early 2000. The emphasis of the regulatory reform

45 OECD, Executive Committee in Special Session,

Progress on OECD Initiatives (Note by the

Secretary-General), ECSS(98)5, Oct. 16, 1998.

46 For further detail, see USITC, The Year in Trade:

OTAP 1997, USITC publication 3103, May 1998, pp. 51-53.
31

program is on regulatory quality enhancing the

functioning of markets, with deregulation where

appropriate, and efficient regulation where needed to

protect major social aims such as health, safety, and the

environment. The 1997 report showed that regulatory

reform that enhances an economy’s capacity to adapt,

innovate, and otherwise respond to consumer needs

can stimulate economic growth and help economies

maximize the opportunities presented by globalization

and technological change. At the same time,

well-designed regulation helps governments better

achieve policy goals in areas such as safety, health, and

environment protection. A report on the results of the

first set of reviews and possible lessons is to be

presented at the ministerial meeting in 1999.47

Electronic Commerce

In October 1998, the OECD held a ministerial

conference in Ottawa, Canada, to open discussion on

problems and possible solutions to barriers set out at an

initial meeting on electronic commerce (e-commerce)

held in November 1997. General principles were

proposed at the 1997 meeting, and member states felt

that these principles should govern whatever solutions

were developed to the obstacles confronting

e-commerce. Officials at the 1997 meeting also

discussed various approaches to problems and

identified organizations that may be able to help

develop and implement various solutions.

At the 1998 Ottawa conference, participants began

examination of possible solutions to these barriers. The

conference involved 1,000 participants, including 30

ministers and high-level officials from all OECD

member countries, as well as 12 nonmember countries;

12 international organizations; and representatives

from business, trade unions, consumer groups, and

other nongovernmental organizations (NGOs).

Three action plans to improve transparency of

work in this area were tabled—one involving an

OECD action plan regarding e-commerce, a second

involving a report on international and regional bodies’

activities and initiatives on e-commerce, and a third

action plan regarding e-commerce prepared by

business with recommendations for government.

In addition, three ministerial declarations were

adopted at the conference:

 The Declaration on Protection of Privacy on Global

Networks

47 OECD, Executive Committee in Special Session,

Progress on OECD Initiatives (Note by the

Secretary-General), ECSS(98)5, Oct. 16, 1998.

 The Declaration on Consumer Protection in the

Context of Electronic Commerce

 The Declaration on Authentication for Electronic

Commerce

The first reaffirms the importance of protecting

privacy regardless of the medium, the second

highlights the need to ensure that consumers involved

in e-commerce have transparent and effective

protection for electronic transactions, and the third

states ministers’ determination not to discriminate

against different approaches that countries might take

toward authenticating e-commerce transactions.

Ministers also received a report on conditions for a

taxation framework regarding e-commerce and agreed

to move forward with work set out in this report. The

report concluded that existing taxation principles can

be applied to e-commerce but that new forms of

taxation that could discriminate against e-commerce

should not be adopted.

The work plan on e-commerce set out at the

conference includes:

 Development in 1999 of Guidelines for Consumer

Protection concerning e-commerce;

 Work on the practical implementation of the 1980

OECD Privacy Guidelines regarding global

networks;

 Analysis of programs used to authenticate and

certify e-commerce transactions;

 Beginning work on defining and measuring

e-commerce;

 Extension of analysis on the economic and social

impacts of e-commerce, as well as various

Government applications, such as in education;

 Continued work on the policy implications of

changing information and communication

networks, including technological convergence,

enhancing access to electronic infrastructure, and

requirements for open markets; and

 Setting up specific technical advisory groups to

address taxation issues, including treatment of

royalties and of establishment and consumption

taxes, as well as using e-commerce technologies to

reduce the burden of tax payment.48

48 OECD, Executive Committee in Special Session,

Progress on OECD Initiatives (Note by the

Secretary-General), ECSS(98)5, Oct. 16, 1998.

33

CHAPTER 3

Regional Trade Activities

Regional trade initiatives were an important

component of U.S. trade policy during 1998. The

United States participated in activities related to the

North American Free-Trade Agreement (NAFTA), in

the Asia-Pacific Economic Cooperation (APEC)

forum, and in ongoing discussions to initiate the Free

Trade Area of the Americas (FTAA).

The North American Free

Trade Agreement (NAFTA)

The North American Free Trade Agreement

(NAFTA), implemented on January 1, 1994, was the

first reciprocal free trade pact signed between

industrialized and developing nations and remains the

most comprehensive and largest regional free trade

agreement in the world.1 The agreement extends to

Mexico the commitments made by Canada and the

United States in the preexisting (1989) Canada-U.S.

Free Trade Agreement (CFTA), such as the dispute

settlement procedures and the elimination of tariff and

most nontariff barriers.2 The NAFTA also expands the

CFTA in the three important areas of intellectual

property rights, rules against distortions in investment,

and transportation services.3 The NAFTA also

includes supplemental cooperation agreements to

enhance and encourage protection of the environment

and to improve and enforce labor standards in the

region.

Following is an overview of U.S. trade with

NAFTA partners and a review of major developments

under NAFTA in 1998, including the meeting of the

NAFTA Free Trade Commission in April; efforts to

1 Gary Clyde Hufbauer and Jeffrey J. Schott, NAFTA:

An Assessment, Institute for International Economics,

Washington, DC, Oct. 1993, p. 1.

2 The NAFTA provides for the elimination of tariff and

most nontariff barriers over a 10-year period, with a 15-year

period applied to some agricultural products.

3 Although transportation services were included in the

original NAFTA agreement, disputes related to trucking

services have impeded successful implementation of this

part of the agreement. See the section on Market Access

below for further details.

resolve implementation issues such as market access,

intellectual property rights, and labor standards; and

formal dispute settlement activities over the past year

under NAFTA’s Chapters 11, 19, and 20.

U.S. Trade with NAFTA

Partners

The CFTA, which provided for the phased

elimination of all tariffs on originating goods traded

between the United States and Canada, was fully

implemented on January 1, 1998, so that most

Canadian goods enter free of duty into the United

States. The NAFTA initially eliminated tariffs on more

than one-half of U.S. imports from Mexico and more

than one-third of U.S. exports to Mexico. With the use

of accelerated tariff elimination provided for in the

NAFTA4 and the completion of two rounds to date,

more than 85 percent of U.S. goods were exported to

Mexico free of duty in 1998, with remaining tariffs

between 5 and 20 percent ad valorem. The average

Mexican tariff on U.S. products has fallen from 10.0

percent ad valorem in 1994 to 1.68 percent in 1998,

while the average U.S. tariff on qualifying Mexican

products has fallen from 4.0 percent to 0.46 percent.5

By the year 2004, all tariffs on trade among NAFTA

partners, worth over $500 billion in 1999, will be

eliminated.

In its first five years, the NAFTA contributed to a

72 percent growth in two-way merchandise trade

between the United States and Mexico and a 34 percent

increase in two-way trade between Canada and the

United States. In September 1998, Mexico surpassed

Japan as the second largest single U.S. trading partner,

after Canada.6 U.S. exports to Mexico increased by 10

percent from 1997 to 1998, reaching $75.4 billion

(table 3-1). U.S. imports from Mexico grew by 9

4 Article 302 of the NAFTA provides that the parties

may consider and agree to accelerate the elimination of

customs duties on goods of a party; for details, see 62 F.R.

25989 (May 12, 1997).

5 USTR, “The President’s 1998 Annual Report on the

Trade Agreements Program,” Mar. 1999, p. 159.

6 Ibid.
34

Table 3-1

U.S. Trade with NAFTA partners, 1996-98

(Billion dollars)

Year NAFTA partner Exports Imports

 Trade

balance

 Two-way

trade

1996 Canada . . . . . . . . . . . . . . . 119.1 156.3 -37.2 275.4

Mexico . . . . . . . . . . . . . . . . 54.7 74.2 -19.5 128.9

Canada and Mexico . . . . 173.8 230.5 -56.7 404.3

1997 Canada . . . . . . . . . . . . . . . 134.8 167.9 -33.1 302.7

Mexico . . . . . . . . . . . . . . . . 68.4 85.0 -16.6 153.4

Canada and Mexico . . . . 203.2 252.9 -49.7 456.1

1998 Canada . . . . . . . . . . . . . . . 137.8 174.7 -36.9 312.5

Mexico . . . . . . . . . . . . . . . . 75.4 93.0 -17.6 168.4

Canada and Mexico . . . . 213.1 267.7 -54.6 480.8

Note.—Because of rounding, figures may not add to totals shown.

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

percent, to $93.0 billion. U.S. exports to Canada

expanded by 2.2 percent to $137.8 billion, and imports

from Canada increased by 4 percent to $174.7 billion.

The U.S. trade deficit with its NAFTA partners

expanded in 1998 to $54.6 billion, amounting to a 10

percent increase from $49.7 billion in 1997. The U.S.

bilateral trade deficits with Mexico and Canada

increased by 6 percent (from $16.6 billion to $17.6

billion) and 11 percent (from $33.1 billion to $36.9

billion), respectively.

Meeting of the NAFTA Free

Trade Commission

The NAFTA is overseen by the Free Trade

Commission, which comprises the trade ministers of

each member country7 and meets on an annual basis to

discuss past successes and future goals. Mandates are

carried out by various committees and working groups

made up of relevant government officials from the

three countries. The Free Trade Commission held its

fifth meeting in Paris, France, on April 29, 1998, and

issued a Joint Statement8 which:

 Reaffirmed a strong commitment to the NAFTA

and promotion of trade, investment, economic

growth, and, most important, jobs in the three

countries;

7 U.S. Trade Representative Charlene Barshefsky

represents the United States, Commerce Secretary Herminio

Blanco represents Mexico, and Minister Sergio Marchi

represents Canada.

8 USTR, “Fifth Meeting of the NAFTA Commission

Joint Statement, Paris, France, Apr., 29, 1998,” press release.

 Stressed the significant increase in trade and

investment that has occurred since the NAFTA’s

implementation;

 Reaffirmed a commitment to further promote

public understanding of the benefits of the

Agreement, continuing dialogue with the

private sector on an ongoing basis, and noting

the value of continuing cooperation with the

respective labor and environment ministries;

 Announced accelerated tariff elimination for

hundreds of tariff lines in concessions

approximating $1 billion in trade of goods

between the United States, Canada, and

Mexico,9 thereby further opening opportunities

to the private sector and encouraging future

industry initiatives in this area;

 Acknowledged the progress achieved across the

NAFTA work program, comprising the

activities of more than twenty committees and

working groups and a wide range of additional

subsidiary bodies;

 Acknowledged the central role of the WTO as

the cornerstone of the global, rules-based

trading system and noted the importance of the

WTO Ministerial Conference in May 1998 in

building international understanding and

support for further multilateral liberalization;

9 USTR, “NAFTA Countries Eliminate Tariffs on Nearly

$1 Billion in Trade,” press release 98-71, Aug. 3, 1998.

Tariffs were eliminated on items such as certain chemical

products, towels, hats, certain steel wire, and certain toys. A

comprehensive list of items is published in 63 F.R. 32036

(June 11, 1998).
35

 Welcomed the continuing process of trade

liberalization in the hemisphere and, in

particular, the successful launch of negotiations

for the Free Trade Area of the Americas (FTAA)

earlier in April 1998 in Santiago; and

 Agreed that Canada would host the next

ministerial-level NAFTA Commission meeting

on the occasion of the fifth anniversary of the

NAFTA in early 1999.

In addition to tariff elimination among the NAFTA

countries, Mexico, Canada, and the United States

focused on other efforts to increase trade with

non-NAFTA members. For example, all three

countries are members of the WTO and the Asia

Pacific Economic Cooperation (APEC) forum, and

they all participate in the Free Trade Area of the

Americas (FTAA) initiative.10 Mexico has free trade

agreements with Costa Rica, Colombia, Venezuela,

Bolivia, and Nicaragua.11 Mexico also began

negotiations with Israel and continued to work with the

EU and Chile to expand its free trade initiatives.12 As

part of an agreement signed in 1998 between Mexico

and China, reportedly to address “underinvoicing and

antidumping duty evasion,” Mexico lifted antidumping

duties that were originally imposed in 199413 on 624

products from China.

Canada developed several initiatives to improve

trade and investment with non-NAFTA members in

1998. Free trade agreements with both Israel and Chile

were established in 1997. The first meeting of the

Commission of the Canada-Chile Free Trade

Agreement met on January 21, 1998, in Santiago.14

Canada also signed bilateral trade and economic

10 Developments within the FTAA and APEC are

described in the following regional activity sections.

11 The three free trade agreements with Costa Rica, the

Group of Three (G3-Colombia, Mexico, and Venezuela), and

Bolivia were all implemented in 1995. The agreement with

Nicaragua was implemented on July 1, 1998.

12 Chile and Mexico originally signed a trade pact in

1991, which was expanded in 1998 to include not only

goods but also intellectual property rights, technical barriers

to trade, and sanitary and phytosanitary measures. “Mexico,

Chile Wrap Up Trade Pact Without AD, Government

Procurement,” Americas Trade, Vol. 5, No. 6, Mar. 19, 1998,

p. 1, 13-14.

13 Mexico maintains antidumping duties on another

1,360 products from China. “Mexico Eliminates Import

Tariffs on 624 Products from China,” Americas Trade, Vol.

5, No. 24, Nov. 26, 1998, p. 5.

14 The Canada-Chile Free Trade Agreement was

implemented on July 5, 1997, and successfully completed

the second round of tariff cuts on Jan. 1, 1998. Department

of Foreign Affairs and International Trade, Canada, “First

Meeting of the Canada-Chile Free Trade Agreement

Commission: Joint Statement of the Ministers,” press release

No. 98/7, Jan. 21, 1998.

agreements with several European countries last year,

including Iceland, Norway, Switzerland, and

Liechtenstein,15 in efforts to work toward a free trade

agreement with the European Free Trade Area (EFTA)

countries. The first round of negotiations was held in

Ottawa, Canada, on October 14-15, 1998.16 New

agreements were also pursued to enhance Canada’s ties

with the Americas. An agreement on trade and

investment cooperation was signed on June 16, 1998,

with the Southern Cone Common Market

(MERCOSUR) to enhance trade relations with

Argentina, Brazil, Paraguay, and Uruguay, the four

charter-member countries.17 Also, while attending the

FTAA trade ministers’ meeting in San José, Costa

Rica, on March 18, 1998, Canada signed both a foreign

investment promotion and protection agreement with

Costa Rica and a Memorandum of Understanding

(MOU) on trade and investment with the Central

American Common Market (CACM).18

NAFTA Implementation Issues

The NAFTA partners addressed several issues

regarding the implementation of NAFTA commitments

in the areas of market access, intellectual property

rights, and labor rights in 1998. Following are brief

highlights of developments concerning those issues

over the past year.

Market Access

Market access encompasses several different

initiatives with a common goal of improving or

facilitating the entrance of goods or services into the

NAFTA marketplace. Important market access topics

for 1998 included amendments to Mexico’s

maquiladora regulations, issues concerning the

transportation and financial services industries, and

standards and conformity assessment issues.

15 The agreement was signed by Switzerland on

Liechtenstein’s behalf. The two countries have a customs

union and common agricultural policy. “Canada, EFTA Free

Trade Negotiations Postponed to September,” Americas

Trade, Vol. 5, No. 13, June 25, 1998, p. 19.

16 Department of Foreign Affairs and International

Trade, Canada, “Free Trade Negotiations with EFTA

Countries to Open Transatlantic Trade Bridge,” press release

No. 241, Oct. 9, 1998.

17 “Canada, EFTA Free Trade Negotiations Postponed to

September,” Americas Trade, Vol. 5, No. 13, June 25, 1998,

p. 19.

18 Department of Foreign Affairs and International

Trade, Canada, “Canada Signs Agreements with Costa Rica

and Central American Common Market in San José,” press

release No. 59, Mar. 18, 1998.
36

Amendments to Mexico’s maquiladora

regulations

The NAFTA has had a major impact on recent

developments in the maquiladora industry and has

blurred the formerly clear distinction between plants

established to penetrate the Mexican market and

export-oriented assembly plants along the border.19

Under the NAFTA, registered maquiladoras are

permitted to sell an increasing share of their production

(75 percent in 1998 and up to 100 percent in 2001) into

the Mexican domestic market. However, Mexican

import duties must be paid on that portion of

non-Mexican industrial inputs used to make goods for

consumption in Mexico. This NAFTA provision has

encouraged investments from companies seeking to

supply both the United States and Mexico from a

single manufacturing location. As a result, the fastest

growing portion of the maquiladora industry comprises

companies that are establishing plants closer to the

more heavily populated interior of Mexico where

worker turnover is lower, the educational level of the

average worker is higher, and there are more potential

customers.

A provision of NAFTA that encourages

maquiladoras to use components of North American

origin will take effect January 1, 2001. As of that date,

Mexico will be required to collect import duties on

non-NAFTA-originating components or inputs that are

brought into these plants for further use from

non-NAFTA sources. Companies that continue to rely

on parts made in Asia or Europe will be at a cost

disadvantage relative to those firms that source their

inputs from the NAFTA region.20 Until January 1,

2001, however, maquiladoras will continue to receive

duty-free treatment for materials and components that

are imported into Mexico, provided they are

incorporated into a product for export, regardless of the

country of origin of the inputs.21

19 For additional information, see U.S. International

Trade Commission, Production Sharing: Use of U.S.

Components and Materials in Foreign Assembly Operations,

1994-1997, USITC Publication 3146, Dec. 1998, Chapter 2.

20 See NAFTA, art. 401, Annex 401. The rules of origin

provisions are designed to ensure that only goods actually

produced within the region, with a substantial regional

materials and/or fabrication content, receive the benefits of

preferential tariff treatment with North America. See also

Donald Harrison and Kenneth G. Weigel, Customs

Provisions and Rules of Origin Under the NAFTA, 27

International Law, at 647, 650 (1993) (explaining duty

drawback and deferral provisions in NAFTA).

21 David Eaton, “Transformation of the Mexican

Maquiladora Industry: The Driving Force Behind the

Creation of a NAFTA Regional Economy,” National Law

Center for Inter-American Free Trade, 1997, p. 12.

To comply with the NAFTA provision eliminating

duty-free treatment for materials and components

imported into Mexico, in late November 1998, the

Government of Mexico amended the Maquiladora

Decree (which regulates the assembly industry in

Mexico), announcing that effective January 1, 2001,

companies exporting to the United States or Canada

will be required to pay within 60 days the lower of

either the Mexican tariff on a particular imported input

or the tariff imposed on the input by the NAFTA

nation into which the final good is being exported.22

At the same time, however, a special class of imports

was created to reduce the penalty for maquiladoras

continuing to use non-North American inputs after

January 1, 2001. The amended Maquiladora Decree

accomplished this by creating the “Sectoral Promotion

Program” (SPP), which will reduce normal duties on

certain inputs for the electric and electronic industries,

which are key maquiladora sectors. The SPP will

provide either duty-free or significantly reduced (i.e.,

zero to 5 percent, instead of 10-20 percent) duty

treatment on the finished goods, depending on whether

a competing input is produced in Mexico. The

Maquiladora Decree lists more than 3,000 articles

eligible for reduced rates of duty. To qualify,

companies will have to enroll in the new program by

November 1, 2000. The SPP will largely favor Asian

firms that until recently have been importing the bulk

of their electrical/electronic components from the Far

East and gradually augmenting their sourcing for these

products from North American vendors.

The amended Maquiladora Decree also placed a

limit on the access that foreign assembly plants can

have to the Mexican market. Contrary to the

understanding under the NAFTA, whereby plants

would be allowed to sell all of their production into the

Mexican market effective January 1, 2001, the

amended decree would require companies registered as

maquiladora operations23 to export a minimum of 30

percent of their total production out of Mexico each

year to remain in the program and thus remain eligible

for certain exemptions from value-added taxes.24

Transportation services

The NAFTA was to provide Mexican truckers full

access25 to U.S. border states (California, Arizona,

22 Ibid.

23 The Maquiladora Program is nondiscriminatory. The

Government of Mexico treats all maquiladoras alike,

irrespective of origin of investing country. 24 U.S. Department of State telegram, “Mexico Revising

Maquiladora Regulations,” message reference No. 11177,

prepared by U.S. Embassy, Mexico City, Nov. 19, 1998. 25 Mexican trucks already have access to a 20-mile zone

along the U.S. border under a pre-NAFTA bilateral

arrangement.
37

New Mexico, and Texas) starting in December 1995,

and to the entire United States by 2000. However, in

December 1995, the U.S. Department of

Transportation suspended the processing of

applications by Mexican trucking firms to serve these

border states until safety concerns were resolved. The

United States also decided to delay implementation of

NAFTA commitments on bus transportation, which

called for lifting of restrictions on regular-route,

cross-border scheduled bus service on January 1, 1997.

In January 1996, Mexico sought formal consultations

for the trucking dispute under the NAFTA Chapter 20

dispute-settlement procedures, insisting that the United

States process the more than 100 requests by Mexican

carriers for U.S. operating authority.26 Technical

discussions among safety officials continued without

reaching a satisfactory solution. In July 1998, Mexico

requested a meeting of the Free Trade Commission to

begin the second phase of the dispute-settlement

mechanism for trucking services and also requested

consultations with the United States to begin the

dispute-settlement mechanism for cross-border bus

services.27

The United States maintains that opening U.S.

border states to Mexican trucking28 is contingent upon

mutually acceptable truck safety inspections and

enforcement and cites similar grounds for limiting

cross-border bus services. The lack of comparability

between Mexican inspection procedures and U.S.

standards and the impracticality of U.S. border officials

inspecting all Mexican drivers, trucks, or buses for

violations have been cited as reasons for continuing to

delay full implementation of the NAFTA transportation

provisions.29 The United States and Canada have

developed uniform inspection and safety standards for

both trucks and drivers. However, Mexico does not

have a truck inspection program. A recent audit by the

U.S. Department of Transportation (DOT) Office of

the Inspector General found that too few U.S.

inspections of Mexican trucks were being conducted at

border crossings relative to the volume of traffic and,

26 David Barnes, “No Border Opening Date: U.S. cites

safety concerns, Mexico points to discrimination, cabotage

and 53-foot trailers,” Journal of Commerce, Dec. 15, 1997.

27 Mexican Ministry of Commerce and Industrial

Development, press release: “Mexico Pursues the NAFTA

Dispute Settlement Mechanism Regarding the Opening of

Cross-Border Transportation Services,” Embassy of Mexico,

Washington, DC, July 24, 1998.

28 Ibid.

29 Jack Burke, “Border beefs: As NAFTA trucking talks

continue, little apparent progress, same promises for

crossborder trucking,” Journal of Commerce, Mar. 16, 1998.

See also David Barnes, “No Border Opening Date: U.S. cites

safety concerns, Mexico points to discrimination, cabotage

and 53-foot trailers,” Journal of Commerce, Dec. 15, 1997.

of those inspections that did occur, a high percentage

of Mexican trucks failed.30 The fact that trucks that

are not targeted for inspection are allowed to cross the

border may be an indication that a number of trucks

entering the United States may now fail to comply with

U.S. safety standards. Of those Mexican trucks

inspected, about 44 percent were removed from service

because of serious safety violations, in contrast with a

25 percent out-of-service rate for U.S. trucks and a 17

percent out-of-service rate for Canadian trucks.31

Lack of progress in this matter has also been a

concern of the American Trucking Association (ATA).

The ATA maintains that failure to open U.S. borders

has prevented access to the Mexican market for the

U.S. trucking industry, including the operation of

larger U.S. trucks in Mexico, investment by U.S.

companies in Mexican trucking firms, and the

finalization by the Government of Mexico of

small-parcel delivery regulations for U.S. carriers into

Mexico.32 In December 1998, the ATA marked the

third anniversary of the suspension of the trucking

provision by calling for the complete opening of U.S.

border states to Mexican trucks33 and by noting that

the delay has resulted in inefficiency due to congestion

and delays at ports of entry along the U.S.-Mexican

border.

Efforts to resolve the trucking dispute progressed

during 1998, particularly in light of the approaching

year 2000 deadline for full access. The three NAFTA

parties have been working to implement the

cross-border provisions. The Land Transportation

Standards Subcommittee (LTSS), created by the

NAFTA to address the development of more

compatible standards, held its annual meeting in June

1998. Although the NAFTA calls for the LTSS to

complete its work on reciprocal safety regimes by

2000, the subcommittee noted that work in some areas

30 Transport Topics: “Audit: Poor Truck Inspections at

Border,” American Trucking Association (ATA), Jan. 4,

1999, found at

http://www.ttnews.com/members/topNews/0000606.html,

retrieved Jan. 12, 1999.

31 Department of Transportation, Office of the Inspector

General, Audit: Motor Carrier Safety Program for

Commercial Trucks at U.S. Borders, found at

http://www.dot.gov/oig/whatnew.html, retrieved Jan. 19,

1999.

32 Kevin G. Hall, “Mexico Tired of Waiting for Border

to Open to Truck Traffic,” Journal of Commerce, Dec. 18,

1997.

33 David Barnes, Transport Topics: “NAFTA

Anniversary Sparks Appeal,” American Trucking

Association, Dec. 28, 1998, found at

http://www.ttnews.com/members/printEdition/0000567.html,

retrieved Jan. 4, 1999.
38

may extend beyond the specified time frame.34 Work

is advancing on issues such as the exchange of motor

carrier safety data, inspection standards training,

emissions, vehicle weights and dimensions, hazardous

materials transport regulation and an emergency

response guide, and tank truck inspections. The

Transportation Consultative Group under the LTSS,

which comprises five separate working groups that

meet periodically, addresses follow-on standards issues

in detail. In addition, a new agreement on drug and

alcohol testing of drivers has removed a significant

safety concern. In June 1998, the United States and

Mexico signed a memorandum of understanding on

drug and alcohol testing of commercial drivers, in

order to ensure that Mexico’s testing program meets

U.S. standards.35

Financial services

In December 1997, Canada scheduled two

trade-liberalizing commitments under the WTO

Financial Services Agreement, both effective June 30,

1999. The effect of these commitments could be to

increase competition for all North American banks

operating in Canada. First, foreign banks will be

allowed to branch directly into the country. Direct

branching will allow U.S. and other foreign bank

branches to draw directly on the capital of their home

institutions and to avoid the expensive process of

setting up a subsidiary bank in Canada.36 This change

should terminate the branching restriction that was left

in place under the NAFTA,37 thereby improving the

competitive position of U.S. banks within Canada.

However, it will also open up the Canadian banking

market to greater competition from banks based

outside the NAFTA countries. Second, Canada has

committed to eliminating the requirement for foreign

bank subsidiaries to gain ministerial approval in order

to open more than one branch in the country.38

34 NAFTA Land Transportation Subcommittee, “Joint

Statement of Accomplishments, Montreal, June 8-12, 1998,”

found at http://ostpxweb.dot.gov.aviation/X20/NAFTA.htm,

retrieved Dec. 12, 1998.

35 U.S. Department of Transportation, press release:

“U.S., Mexico Sign Memorandum of Understanding on

Drug and Alcohol Testing of Commercial Drivers,”

Washington, DC, June 10, 1998.

36 Representative of the American Bankers Association,

telephone interview by USITC staff, Jan. 20, 1999.

37 Banks are currently allowed to set up only subsidiary

banks, as opposed to bank branches. Subsidiary banks are

required to maintain separate capital, whereas branches are

able to draw on the capital of the parent bank. This puts

subsidiary banks at a competitive disadvantage.

38 World Trade Organization, “General Agreement on

Trade in Services, Canada: Schedule of Specific

Commitments,” suppl. 4, Feb. 26, 1998, p. 11.

Previously, U.S. and Mexican banks alone had been

accorded this right under the NAFTA.

In September 1998, an influential, governmentappointed task force released a report supporting the

new rules on foreign bank branching, but as of January

1999, implementing legislation had yet to be

introduced into Parliament. The legislation is expected

prior to June 30, 1999,39 however, in line with

Canada’s WTO commitment. There is no information

as yet about the tax rates or the types of requirements

that might be imposed on foreign bank branches.

The North American financial services market is

becoming more integrated in other ways as well. For

example, Canadian banks are expanding their Internet

banking services to customers in the United States,40

and U.S. securities and mutual fund firms are

expanding their presence in Canada.41 Large Canadian

banks are expected to look to the United States for

merger opportunities, in light of the Canadian

Government’s refusal to approve two large merger

deals between Canadian banks in late 1998.42 Mexico

has moved to open its financial services market,

passing a new law in December 1998 that allows

foreign institutions to acquire majority stakes in the

country’s three largest banks for the first time.43

Standards and conformity assessment

Standards and conformity assessment are covered

in both Chapter 7 and Chapter 9 of the NAFTA.44

Standards-related issues, such as Mexico’s

39 U.S. Department of State telegram, “Finance Minister

Nixes Bank Mergers; Foreign Bank Branching Still on the

Agenda,” message reference No. 004474, prepared by U.S.

Embassy, Ottawa, Dec. 15, 1998.

40 See “On-Line Banking: Canadian Banks Map U.S.

Invasion Using the Internet, Not Branches,” American

Banker, Mar. 19, 1998, found at Internet address

http://www.americanbanker.com, retrieved Dec. 31, 1998.

41 See, e.g., “U.S. Financial Firms Zero In on Canada

Market,” American Banker, Jan. 29, 1998, found at Internet

address http://www.americanbanker.com, retrieved Dec. 31,

1998.

42 “Discouraged at Home, Canada’s Big Banks May Be

Shopping in U.S. Again,” American Banker, Jan. 4, 1999,

found at Internet address http://www.americanbanker.com,

retrieved Jan. 4, 1999.

43 “A New Law Has U.S. Banks Looking to Mexico,”

American Banker, Dec. 16, 1998, found at Internet address

http://www.americanbanker.com, retrieved Dec. 31, 1998.

44 Chapter 9 is entitled Standards-Related Measures and

covers all standards-related issues except those explicitly

specified in Chapter 7, Section B, on Sanitary and

Phytosanitary Measures, relating to food safety. As stated in

the scope and coverage of Chapter 9 in NAFTA Article

901.1, “This Chapter applies to standards-related measures

of a Party, other than those covered by Section B of Chapter

Seven (Sanitary and Phytosanitary Measures), that may,

directly or indirectly, affect trade in goods or services

between the Parties, and to measures of the Parties relating

to such measures.”
39

certification procedures, Mexico’s NAFTA obligation

pursuant to Article 908.2 to recognize U.S. and

Canadian conformity assessment bodies, and food

safety standards, continued to affect U.S. firms’ access

to the Mexican market in 1998. The NAFTA

Committees on Standards-Related Measures and

Sanitary and Phytosanitary Measures worked to

resolve these issues.45

Mexican certification procedures and laboratory

testing of products were initially changed in 1994.46

This law required that each importer (rather than each

producer) obtain its own certification to Mexican

mandatory standards for the same product. The

certification procedures were again modified and

issued as regulations in October 1997.47 While the

new procedures offer some benefits over those

originally developed, problems remain.

The primary concern of U.S. industry and

government representatives has been the additional

burden imposed on U.S. and Canadian exporters using

more than one importer in Mexico. A manufacturer

must have each importer test and obtain certification

for identical products. In an attempt to address this

multiple certification issue, Mexico’s revised

certification procedures allow foreign manufacturers to

obtain a “dictamen” (product ruling). However, in

45 The Committee on Standards-Related Measures

oversees the following four subcommittees: the Land

Transportation Standards Subcommittee, the

Telecommunications Standards Subcommittee, the

Automotive Standards Council, and the Subcommittee on

Labeling of Textile and Apparel Goods. (NAFTA Article

913) The Committee on Sanitary and Phytosanitary

Measures (SPS) was created under NAFTA Article 722 to

facilitate the enhancement of food safety and improvement

of sanitary and phytosanitary measures of its members; the

use of international standards or equivalent standards and

participation in international standards activities; and

technical cooperation in this area among members. The SPS

Committee has eight technical working groups, which

include animal health; dairy, fruits, vegetables, and

processed foods; food additives and contaminants; fish and

fishery product inspection; meat, poultry and egg inspection;

pesticides; plant health, seeds, and fertilizers; and veterinary

drugs and feed. (NAFTA Articles 722, 713 and 714)

46 “Políticas y procedimientos para la evaluación de la

conformidad. Procedimientos de certificación y verificación

de productos sujetos al cumplimiento de normas oficiales

mexicanas, competencia de la Secretaría de Comercio y

Fomento Industrial.” Diario Oficial de la Federación, June

14, 1994.

47 The procedures replace those published in 1994.

“Políticas y procedimientos para la evaluación de la

conformidad. Procedimientos de certificación y verificación

de productos sujetos al cumplimiento de normas oficiales

mexicanas, competencia de la Secretaría de Comercio y

Fomento Industrial.” Diario Oficial de la Federación, Oct.

24, 1997.

order to take advantage of this option, a foreign

manufacturer must have its quality management

system registered by a Mexican-recognized quality

system registrar.48 This process is not imposed on

Mexican manufacturers and reportedly is very costly,49

especially if the manufacturer has already registered

the quality management system in the United States or

Canada. In addition, the majority of quality

management system registrations for Mexican

companies are in fact issued by non-Mexican entities.

It has been suggested that the procedures may again be

modified to take these concerns into account.50

One option is to allow foreign manufacturers

(rather than each importer) to obtain the certification

directly and therefore eliminate this extra cost.51

Another possibility for modification would be the

recognition of quality system registration granted by

U.S. or Canadian registrars, which would allow

companies that have already obtained the quality

system registration52 to just apply for the dictamen and

not have to duplicate the registration process in

Mexico. In addition, under NAFTA article 908.2,

Mexico is obligated to recognize U.S. and Canadian

conformity assessment bodies on no less favorable

terms than those accorded to conformity assessment

bodies in Mexico.53 Mexico’s revised law of

Metrology and Standardization (1997) allowed for the

privatization of its accreditation program, while the

Mexican Government was expected to continue

processing accreditation applications until this

private-sector body has been established. Applications

submitted in 1998 by U.S. and Canadian laboratories

had not been processed, but close to 100 Mexican

48 Quality system registration is the assessment and

periodic audit of the adequacy of a producer’s quality

assurance system by a third party known as a quality system

registrar. For more information on quality management

systems and ISO-9000 see the National Institute of

Standards and Technology Web site at

http://ts.nist.gov/ts/htdocs/210/216/216.htm or the

International Organization for Standardization Web site at

http://www.iso.ch.

49 U.S. Department of State telegram, “Director General

for Standards on Lab Accreditation, Certification, and Beer

Labeling-Mexico,” message reference No. 8043, prepared by

U.S. Embassy, Mexico City, Aug. 18, 1998.

50 Ibid.

51 Ibid. U.S. Department of State telegram, “Standards

Issues: Accreditation and Certification-Mexico,” message

reference No. 10725, prepared by U.S. Embassy, Mexico

City, Oct. 29, 1998.

52 This is based on the idea that the quality management

system standards adopted in the United States, Canada, and

Mexico are all based on the international ISO-9000 series

standards and are therefore compatible.

53 NAFTA Article 908.2 states the obligation, while

Annex 908.2 gave Mexico a four-year transition period until

January 1, 1998, to implement this obligation.
40

laboratories had already been accredited.54 In January

1999, Mexico designated the Entidad Mexicana de

Acreditación (EMA) as the new private-sector

accreditation body.55

A Joint Statement was signed on June 10, 1998, at

the meeting of the U.S.-Mexico Binational

Commission, highlighting a commitment between U.S.

and Mexican counterparts to cooperate in the area of

food safety to protect public health in both countries.

The food safety agreement coincided with President

Clinton’s Food Safety Initiative, announced in April,

which included guidelines for safe production of fruits

and vegetables.56 It is not yet clear how the

cooperation will be implemented, but work likely will

take place within the Committee on Sanitary and

Phytosanitary Measures (SPS) working groups. The

SPS Committee, established under NAFTA Article

722, held its seventh meeting on November 4-5, 1998.

One issue that was emphasized was the prevention of

microbial contamination of fruits and vegetables-an

ongoing problem. Committee efforts are also focusing

on harmonizing procedures that NAFTA countries use

to issue SPS certification for processed food products,

including certificates of origin, NAFTA certificates,

and certificates of chemical analysis.57

Intellectual Property Rights

Chapter 17 of the NAFTA defines the intellectual

property obligations of the partners. Each member is

to provide to the nationals of other members “adequate

and effective protection and enforcement of intellectual

property rights, while ensuring that measures to

54 Changes in the Metrology law that took place in 1997

indicated that responsibility for accreditation would be

transferred to one or more private-sector bodies. In the

interim, the Mexican Government maintained the

responsibility. Information provided by the U.S. Department

of Commerce, International Trade Administration, Office of

NAFTA and Inter American Affairs, Jan. 15, 1999.

55 “Autorización para operar como entidad nacional de

acreditación a la asociación civil denominada Entidad

Mexicana de Acreditación, A.C. (EMA),” Diario Oficial de

la Federación, Jan. 15, 1999. This publication in the

Mexican Offical Gazette announces and names the Mexican

private-sector accreditation body as the Mexican

Accreditation Entity.

56 The guidelines under the Food Safety Initiative

address issues such as quality of water used for irrigation

and sanitary installations for field workers. The Initiative

also required legislation to be passed to give the Food and

Drug Administration the authority to inspect facilities in

foreign countries. “U.S., Mexico Sign Food Safety

Agreement at Binational Commission Meeting,” Americas

Trade, Vol. 5, No. 12, June 11, 1998, pp. 1, 16.

57 Food safety issues are covered under Chapter 7 of the

NAFTA on Agriculture and Sanitary and Phytosanitary

(SPS) Measures. “Processed Food Safety Rules to be Key

Issue at USTR Hearing,” Americas Trade, Vol. 5, No. 21,

Oct. 15, 1998, pp. 7-8.

enforce intellectual property rights do not themselves

become barriers to legitimate trade.”58 The NAFTA

requires that the provisions in Chapter 17 be applied by

the United States, Canada, and Mexico upon

implementation of the agreement.59 Intellectual

property rights remained in the forefront of

implementation issues that received considerable

attention in 1998. Although Mexico has made much

progress in implementing the provisions of the

agreement during the first five years of NAFTA,

continuing problems related to the prevalence of piracy

and the lack of effective enforcement of copyright laws

were of particular concern to the United States in 1998.

Although Mexico improved the legislative aspects of

intellectual property rights through the implementation

and change of its Copyright Law and amendment of its

Penal Code in 1997, enforcement and prosecution of

offenders remained little improved over the past year.60

As a result, Mexico was in jeopardy of being placed on

USTR’s Special 301 “priority watch list,”61 reportedly

58 NAFTA Chapter 17 defines the following

international agreements as the basis and minimum

requirements of intellectual property rights afforded to

NAFTA members: the Geneva Convention for the Protection

of Producers of Phonograms Against Unauthorized

Duplication, the Berne Convention for the Protection of

Literary and Artistic Works, the Paris Convention for the

Protection of Industrial Property, and the International

Convention for the Protection of New Varieties of Plants.

NAFTA Article 1701 defines the nature and scope of the

obligations. Taken from the Internet at http://www.sice.oas/

trade/nafta/chap-171.stm, retrieved Nov. 24, 1998.

59 NAFTA commitments exceed those of the WTO

Agreement on Trade-Related Intellectual Property Rights

(TRIPS) developed in the Uruguay Round negotiations. The

TRIPS agreement allows for a transition period of four years

for implementation of obligations for developing countries.

60 Mexico also amended its 1991 Industrial Property

Law, effective October 1, 1994, and passed a law in 1996

providing protection to plant species. U.S. Department of

State telegram, “1998 Trade Act Report: Mexico,” message

reference No. 11385, prepared by U.S. Embassy, Mexico

City, Nov. 25, 1998.

61 The USTR is required, in accordance with ”Special

301” provisions of the Trade Act of 1974, as amended, “to

determine whether the acts, policies and practices of foreign

countries deny adequate and effective protection of

intellectual property rights or fair and equitable market

access for U.S. persons who rely on intellectual property

protection. ”Special 301” was amended in the Uruguay

Round Agreements Act to clarify that a country can be found

to deny adequate and effective intellectual property

protection even if it is in compliance with its obligations

under the TRIPs Agreement.” Pursuant to this obligation,

the USTR conducts a yearly review to determine which

countries are not in compliance with the Agreement and

should be further investigated. Countries with

noncompliance issues are either placed on the “Priority

Watch” or “Watch” lists. “Fact Sheets: $Special 301’ on

Intellectual Property Rights and 1996 Title VII Decisions,”

information from USTR at Internet address

http://www.ustr.gov/reports/301report/factsheets.html,

retrieved Dec. 11, 1998.
41

in response to International Intellectual Property

Alliance (IIPA) recommendations.62 The IIPA also

recommended that Mexico be taken to dispute

settlement for violations of NAFTA Articles 1714,

1715, 1716, and 1717, relating to the enforcement and

penalties for infringement of copyright law, if the

situation did not improve.63

In order to avoid being designated a “priority

watch” country by the USTR, Mexico agreed to

commit to a national antipiracy campaign that would

work toward improvements in enforcing copyright and

trademark laws, including cooperation of state and

municipal authorities for the first time.64 The National

Campaign Against Piracy was announced on

November 11, 1998, by Mexican Commerce Secretary

Herminio Blanco.65 The three main elements included

in the campaign are:

 The reclassification of copyright infringement

as a “serious crime,” increasing the penalties for

violators;66

 An increase in the budget of enforcement

agencies, including the Mexican Industrial

Property Institute (IMPI), and coordination of

efforts through an “inter-institutional

secretariat”;67 and

62 “IIPA Charges Mexico, Canada Fall Short of NAFTA,

TRIPS Obligations,” Americas Trade, Vol. 5, No. 5, Mar. 5,

1998, p. 7.

63 IIPA, “1998 Special 301 Recommendations,”

submitted to the USTR, February 23, 1998, pp. 52-58.

64 Mexico was cited under “Other Observations” as

“experiencing significant problems with copyright piracy

and, to a lesser extent, trademark counterfeiting.” A bilateral

working group was established to work on these issues.

USTR, “Fact Sheets: $Special 301’ on Intellectual Property

Rights and 1996 Title VII Decisions,” information from

USTR at Internet address

http://www.ustr.gov/reports/301report/factsheets.html,

retrieved Dec. 11, 1998.

65 Secretaría de Comercio y Fomento Industrial

(SECOFI), Mexico, “Lanza el Gobierno Federal Compaña

Nacional Contra la Piratería,” press release No. 637, Nov.

11, 1998.

66 The designation of “serious crime” under Mexican

law prevents IPR violators from making bail simply by

posting a bond, increases sanctions from 6 months to 6 years

to 6 to 20 years and increases fines to 2,000 to 20,000 times

Mexico’s minimum wage. “U.S. Copyright Groups to $Wait

& See’ on Mexican Anti-Piracy Campaign,” Americas

Trade, Vol. 5, No. 24, Nov. 26, 1998, pp. 2-3.

67 IMPI’s budget in 1999 will be three times the 1998

level. The other two organizations receiving funding

increases are the Attorney General’s Office (PGR) and the

National Institute of Authors’ Rights (INDA). U.S.

Department of State telegram, “Mexico Announces

Anti-Piracy Campaign,” message reference No. 10982,

prepared by U.S. Embassy, Mexico City, Nov. 12, 1998.

 An educational program, in cooperation with

the World Intellectual Property Organization

(WIPO) and the WTO, to increase public

awareness of judges, public officials, and the

general public about the importance of

protection of intellectual property rights,

especially authors’ rights.68

Canada was again placed on USTR’s Special 301

Watch List in 1998 concerning questions of conformity

with obligations under both the NAFTA and TRIPs

Agreement.69 In April 1997, Canada enacted

amendments to its Copyright Act that had the effect of

discriminating against copyright holders by charging a

levy on blank tapes and establishing a right of

remuneration for telecommunication of sound recordings to the public. These two provisions specifically

deny U.S. copyright holders national treatment granted

under NAFTA article 1703. In addition, IIPA has

claimed that section 58.1 of the Canadian Copyright

Act, not yet enacted into law, may be a violation of

NAFTA Article 1705.3, which guarantees free

transferability of copyrights and related rights.70

Labor Rights

The NAFTA was accompanied by a trilateral North

American Agreement on Labor Cooperation (NAALC)

to ensure that NAFTA-related economic integration

68 Coordination of the “inter-institutional secretariat”

will be coordinated by SECOFI through the IMPI and will

include the Attorney General’s office and the Ministries of

Finance, Foreign Affairs and Education. “U.S. Copyright

Groups to $Wait & See’ on Mexican Anti-Piracy

Campaign,” Americas Trade, Vol. 5, No. 24, Nov. 26, 1998,

pp. 2-3.

69 See the section of this report, U.S. Relations with

Major Trading Partners: Canada, for details about the

dispute relating to the 80 percent tax placed on split-run

editions of magazines. Canadian discriminatory licensing

conditions on direct-to-home satellite television are under

consideration by the USTR to determine whether it is

actionable under article 2106 of the NAFTA and WTO

obligations. USTR, “Fact Sheets: $Special 301’ on

Intellectual Property Rights and 1996 Title VII Decisions,”

information from USTR at Internet address

http://www.ustr.gov/reports/301report/factsheets.html,

retrieved Dec. 11, 1998.

70 NAFTA Article 1705.3 states that “each Party shall

provide that for copyright and related rights: (a) any person

acquiring or holding economic rights may freely and

separately transfer such rights by contract for purposes of

their exploitation and enjoyment by the transferee; and (b)

any person acquiring or holding such economic rights by

virtue of a contract, including contracts of employment

underlying the creation of works and sound recordings, shall

be able to exercise those rights in its own name and enjoy

fully the benefits derived from those rights.” IIIPA, “1998

Special 301 Recommendations,” submitted to the USTR,

Feb. 23, 1998, pp. 57-58. “IIPA Charges Mexico, Canada

Fall Short of NAFTA, TRIPS Obligations,” Americas Trade, Vol. 5, No. 5, Mar. 5, 1998, p. 7.
42

improved working conditions and living standards and

increased adherence to basic labor law principles by

each country. The NAALC is administered by a

Commission for Labor Cooperation (CLC), which is

overseen by a Council comprising the three NAFTA

labor ministers. Each member has a National

Administrative Office (NAO) to ensure the

implementation of the NAALC and to investigate any

violation of the agreement. In the United States, a

12-member National Advisory Commission drawn

from academia, business, and labor groups advises the

NAO. If the NAO determines that a violation of the

agreement has occurred, the matter is then referred to

the CLC Council to hold ministerial consultations with

the respective party to resolve the issue.

At its fifth annual meeting, held October 7-8 1998,

the CLC completed its mandatory four-year review of

the NAALC. The major conclusions of the review

were to:71

 Strengthen the activities of the NAO, including

increased public information and making the

office more strategic and results oriented;

 Increase the level of activity of the trinational

Commission for Labor Cooperation by using

the Secretariat to conduct extensive studies of

critical issues and to provide comparable

labor-relations data; and

 Improve the ministerial consultation process by

utilizing the Secretariat in appropriate cases for

trinational special studies, as exemplified by the

1996 report, Plant Closings and Labor Rights.

The CLC also undertook ministerial consultations

on three public submissions alleging violation of the

safety, health, and civil rights of workers by Mexico

and agreed to approve a final list of potential

candidates to serve on the experts’ panels that conduct

independent evaluations enforcement by NAFTA

members on specific aspects of their labor laws.72

Domestic interest groups can submit requests to their

national NAO office to investigate alleged claims of

violations of the NAALC or labor laws of another

country. Three public submissions by domestic

interest groups were reviewed by the U.S. NAO

against Mexico in 1998. For example, the U.S. NAO

71 “Ministers Review NAFTA’s Labor Agreement,”

International Trade Administration, Oct. 1998, found at

Internet address http:www.naalc.org, retrieved Jan. 8, 1999.

72 U.S. Department of State telegram, “NAFTA Labor

Ministerial in Prince Edward,” message No. 003876,

prepared by U.S. Embassy, Ottawa, Oct. 23, 1998.

determined that gender discrimination in the Mexican

workplace does exist and is in direct violation of the

Mexican Constitution and Federal Labor Law. Labor

rights activists alleged that the civil rights of females

were violated and the payment of benefits were

avoided because of mandatory pregnancy-testing

policies of current and potential employees in Mexican

factories. Mexico’s Labor Ministry agreed to a

ministerial-level meeting with the United States to

discuss the alleged violation of civil rights in the

workplace.73

After reviewing claims of alleged violations of the

safety and health of workers and of denial of freedom

of association at the Han Young maquiladora plant, the

U.S. NAO requested consultation with Mexico’s

Ministry of Labor. The U.S. NAO studies found that

hazardous conditions continued even after thorough

inspections by Mexican officials and that fines levied

against the factory were not collected by the Mexican

Government. The Mexican Labor Ministry decided to

review thoroughly the findings of the U.S. NAO before

responding to the request for a meeting by the United

States.74

NAFTA Dispute Settlement

The NAFTA contains dispute-settlement provisions

on investment, financial services, antidumping and

countervailing duties, and general disputes in four

chapters: 11, 14, 19, and 20, respectively.75 For the

resolution of disputes in financial services, Chapter 14

establishes that Section B of Chapter 20 applies and

therefore does not provide a separate mechanism, per

se, for dispute resolution. While the mechanisms

established in Chapters 11 and 19 are unique to the

NAFTA, general disputes covered under Chapter 20

may be pursued either under the NAFTA or the WTO

dispute-settlement mechanism, but not both.76 The

NAFTA Secretariat, which comprises “sections” for

73 “U.S., Mexico Sign Accord to Talk About Pregnancy

Discrimination,” Americas Trade, Oct. 1998, Vol. 5, No. 22,

Oct. 29, 1998, pp. 16-17.

74 “U.S. Calls on Mexico to Consult on Safety, Health at

Han Young Factory,” Americas Trade, May 1998, Vol. 5, No

17, Aug. 20, 1998, pp. 8-9.

75 Dispute resolution of environmental or labor issues is

referred to under the side accords’ mechanisms, according to

NAFTA Chapters 27 and 28, respectively. See above section

on labor rights for more details.

76 This applies to areas of overlap between the two

agreements. Where the agreements differ, the complaint

must be pursued under the agreement that applies. As stated

in NAFTA Article 2005.1, “disputes regarding any matter

arising under both this Agreement and the General

Agreement on Tariffs and Trade, any agreement negotiated

thereunder, or any successor agreement (GATT) may be

settled in either forum at the discretion of the complaining

Party.”
43

each country, is responsible for the administration of

the dispute-settlement provisions of the Agreement and

maintains a courtlike registry relating to panel,

committee, and tribunal proceedings.77

As of January 1999, a total of 55 NAFTA cases

have been taken to dispute resolution: 7 under Chapter

11, 44 under Chapter 19, and 4 under Chapter 20.78

There are currently 6 cases related to Chapter 11, 17

related to Chapter 19, and 2 related to Chapter 20 still

pending.

Chapter 11: Investor-State Disputes

Chapter 11, in accordance with the principles of

international reciprocity and due process, provides four

options for resolution of investor claims of breached

investment obligations by NAFTA host governments.

An investor may choose the remedies available in the

77 A Binational Secretariat existed under the United

States-Canada Free Trade Agreement, which was expanded

to include a Mexican section and renamed the NAFTA

Secretariat in 1994, pursuant to the Agreement. Information

from the NAFTA Secretariat found at Internet address

http://www.nafta-sec.org/english/home.htm, retrieved Jan. 4,

1999.

78 Cumulative number of disputes as of January 12,

1999. Information provided by the U.S. Section of the

NAFTA Secretariat, Jan. 13, 1999.

host country’s domestic courts or pursue recourse

through one of the three following arbitral

mechanisms: the World Bank’s International Center

forthe Settlement of Investment Disputes (ICSID);

ICSID’s Additional Facility rules; or the rules of the

United Nations Commission for International Trade

Law (UNCITRAL rules). All arbitral decisions are

enforceable in the domestic courts, which is an

important feature of the Chapter.

Before 1997, there were no submissions made

under NAFTA Chapter 11 involving investor-state

dispute resolution. Two of the three cases filed in 1997

are still pending, while four new cases were also filed

in 1998. In July 1998, the one case that was resolved

was settled out of arbitration and involved claims

related to national treatment, performance

requirements, and expropriation and compensation

against Canada. The six pending cases, seen below in

the tabulation, involve issues such as the requirement

of NAFTA countries to fulfill their obligations at the

state and municipal levels, the extent of such

obligations, performance requirements, expropriation

and compensation, special formalities and information

requirements, and others.79

79 Information on NAFTA Chapter 11 cases provided by

the U.S. Department of Commerce, International Trade

Administration, Office of NAFTA and Interamerican Affairs,

received Feb. 1, 1999.

Company

Country 

Defendant

Date of 

Submission of

Claim

Damages 

Being

Claimed

Claims’ 

Corresponding 

NAFTA Articles Status

Metalclad Mexico January 2, 1997 US$90

million

1102, 1103, 1104,

1105, 1106, 1110

In arbitration

Desona Mexico March 13, 1997 US$17

million

1102, 1103, 1104,

1105, 1106, 1110,

1111

In arbitration

USA Waste Mexico September 29,

1998

US$60

million

1105, 1110 Prearbitration

Corporacion de

Exportaciones

Mexicanas SA

de CV (CEMSA)

Mexico August 18, 1998 US$15.5

million

1110 Under review by

U.S. Treasury

pursuant to Article

2103.6 until

Feb. 18, 1999

S.D. Myers Canada October 30, 1998 US$10

million

1102, 1105, 1106,

1110

Prearbitration

Loewen United

States

October 30, 1998 US$725

million

105, 1102, 1105,

1110

Prearbitration
44

Chapter 19: Panel Reviews of

AD/CVD Determinations80

NAFTA companies may request a review of

antidumping and countervailing duty (AD/CVD)

determinations in accordance with Chapter 19. The

Chapter provides for the establishment of binational

panels made up of experts from both the petitioning

and responding countries to review the final

antidumping or countervailing duty determinations.

From NAFTA’s entry into force through 1998, a total

of 44 cases have been filed to review antidumping or

countervailing duty determinations made by the

responsible U.S., Canadian, or Mexican government

agency. Of those 44 cases, 27 have been concluded; 10

reviewed U.S. determinations, 7 reviewed Mexican

80 Information on Chapter 19 panel reviews provided by

the U.S. Department of Commerce, U.S. Section of the

NAFTA Secretariat, received Jan. 13, 1999. For details on

Chapter 19 panel reviews, see the NAFTA Secretariat Web

site at http://www.nafta-sec-alena.org.

determinations, and 10 reviewed Canadian

determinations. Eleven of the concluded cases were

terminated at the request of participants, without a

decision being issued. Seven of the cases upheld the

antidumping or countervailing duty determination by

unanimous vote of the Panel, and in only one case did

the Panel determine that the existing antidumping

duties must be withdrawn. One case was initially

remanded and then upheld after a modified

determination was issued. The remaining 10 cases

upheld in part and remanded in part the final

antidumping or countervailing duty determinations

made.81 The following is a list of Chapter 19 panel

reviews active at year-end 1998.82

81 The cases that were remanded in part upheld the

agencies’ decisions, but required further investigation by the

agency and another panel review to decide on the final

outcome of a specific aspect of the determination.

82 Information in the listing provided by the U.S.

Department of Commerce, U.S. Section of the NAFTA

Secretariat, received Jan. 13, 1999. For details on Chapter 19

panel reviews, see the NAFTA Secretariat Web site at

http://www.nafta-sec-alena.org.

Case Product

Country AD/CVD 

Determinations Being

Reviewed Appealed by Status

USA-97-1904-01 Gray Portland

Cement and Clinker

from Mexico

U.S. Department of

Commerce Final

Results of 5th AD

Administrative

Review

Mexican and U.S.

producers

Decision due April

30, 1999.

USA-97-1904-02 Gray Portland

Cement and Clinker

from Mexico

U.S. Department of

Commerce Final

Results of 4th AD

Administrative

Review

Mexican and U.S.

producers

On December 4,

1998, the panel

affirmed the final

determination.

USA-97-1904-03 Certain

Corrosion-Resistant

Carbon Steel Flat

Products from

Canada

U.S. Department of

Commerce Final

Results of AD

Administrative

Review

Canadian producers On January 20,

1999, the panel

remanded the

determination.

Second

determination due

June 4, 1999.

Decision due

September 2, 1999.

USA-97-1904-06 Circular Welded

Nonalloy Steel Pipe

from Mexico

U.S. Department of

Commerce Final

Results of AD

Administrative

Review

Mexican producers Panel review

terminated by joint

consent of

participants.

USA-97-1904-07 Porcelain-on-Steel

Cookware from

Mexico

U.S. Department of

Commerce Final

Results of 9th

Administrative

Review

Mexican producers Decision due May 1,

1999.
45

Case Product

Country AD/CVD 

Determinations Being

Reviewed Appealed by Status

USA-97-1904-08 Steel Wire Rod from

Canada

U.S. Department of

Commerce CVD

Administrative

Review

Canadian producers

and Government of

Quebec

Suspended March

20, 1998.

USA-CAN-98-1904-01 Certain

Corrosion-Resistant

Carbon Steel Flat

Products from

Canada

U.S. Department of

Commerce Final

Results of AD

Administrative

Review

Canadian producers Proceeding stayed.

USA-MEX-98-1904-02 Gray Portland

Cement and Clinker

from Mexico

U.S. Department of

Commerce Final

Results of 6th AD

Administrative

Review

Mexican producers Decision due date to

be determined by

Panel.

USA-CAN-98-1904-03 Brass Sheet and

Strip from Canada

U.S. Department of

Commerce Final AD

Administrative

Review

Canadian producers Decision due May

26, 1999.

USA-MEX-98-1904-04 Porcelain-on-Steel

Cookware from

Mexico

U.S. Department of

Commerce Final

Results of 9th

Administrative

Review

Mexican producers Decision due June

28, 1999.

USA-MEX-98-1904-05 Circular Welded

Nonalloy Steel Pipe

from Mexico

U.S. Department of

Commerce Final

Scope Ruling in AD

Administrative

Review

U.S. producers Decision due

November 3, 1999.

MEX-96-1904-02 Rolled Steel Plate

from Canada

Secretaría de

Comercio y Fomento

Industrial (SECOFI)

Final AD

Determination

Canadian producers On December 18,

1998, the panel

affirmed the

agency’s second

determination.

MEX-USA-98-1904-01 High-Fructose Corn

Syrup from the

United States

SECOFI Final AD

Determination

U.S. and Mexican

producers

Decision due date to

be determined by

Panel.1

CDA-97-1904-02 Certain Hot-Rolled

Carbon Steel Plate,

Originating in or

Exported from inter

alia, Mexico (Injury)

Canadian

International Trade

Tribunal (CITT)

Injury Finding

Mexican producer Decision due April

19, 1999.

CDA-USA-98-1904-01 Certain Prepared

Baby Food

Originating in or

Exported from the

United States

CITT Injury Finding U.S. and Canadian

producers

Decision due date to

be determined by

Panel.

CDA-USA-98-1904-02 Certain

Cold-Reduced,

Flat-Rolled Sheet

Products of Carbon

Steel, Originating in

or Exported from

inter alia, the United

States (Injury)

CITT Order

Rescinding Injury

Finding

U.S. producer Decision due July

13, 1999.

See footnote at end of list.
46

Case Product

Country AD/CVD 

Determinations Being

Reviewed Appealed by Status

CDA-USA-98-1904-03 Certain Solder Joint

Pressure Pipe

Fittings and Solder

Joint Drainage,

Waste, and Vent

Pipe Fittings, Made

of Cast Copper Alloy,

Wrought Copper

Alloy, or Wrought

Copper, Originating

in or Exported from

the United States

CITT Order

Rescinding Injury

Finding

Canadian

producers

Decision due October 1, 1999.

 1 See U.S. Relations with Major Trading Partners section on Mexico, Chapter 4, for more information on this issue.

Chapter 20: General Dispute

Settlement83

Chapter 20 provides for the resolution of disputes

regarding the interpretation or application of the

Agreement not already specified in Chapters 11 and

19. Two of the four Chapter 20 cases filed since the

inception of NAFTA have been concluded. In

December 1996, a Chapter 20 Panel unanimously

found that the imposition of customs duties imposed by

Canada on certain agricultural products from the

United States conformed to the provisions of the

NAFTA. In January 1998, a Chapter 20 Panel

unanimously decided that U.S. safeguard action taken

on broom corn brooms from Mexico was inconsistent

with the NAFTA and recommended termination of the

action.84 The two remaining cases, both filed in 1998,

are noted in the table at the top of the following page.

83 Information in the section is from the U.S.

Department of Commerce, U.S. Section of the NAFTA

Secretariat, received Jan. 13, 1999.

84 Effective December 3, 1998, safeguard measures in

the form of tariffs on U.S. imports of broom corn brooms

from Mexico were terminated. For background, see U.S.

International Trade Commission, Broom Corn Brooms

(Investigation Nos. TA-201-65 and NAFTA 302-1), USITC

publication 2984, Aug. 1996, and U.S. International Trade

Commission, Broom Corn Brooms: Efforts of Workers and

Firms in the Industry to Make a Positive Adjustment to

Import Competition (Investigation No. 332-394), USITC

publication 3122, Aug. 1998. For further details on the panel

decision, see the NAFTA Secretariat Web site at

http://www.nafta-sec-alena.org.

Asia Pacific Economic

Cooperation (APEC)

During 1998, APEC primarily focused on

implementing the APEC leaders’ 1997 directive to

initiate Early Voluntary Sectoral Liberalization (EVSL)

in 15 sectors.85 There were four meetings of senior

officials and a trade ministerial meeting (in June) to

discuss EVSL.86 In February 1998, senior officials

and the Committee on Trade and Investment (CTI) met

to develop modalities to finalize 9 of the 15 sectors

identified by leaders at their meeting in Vancouver in

1997.87 (The nine sectors include environmental

goods and services, energy equipment and services,

fish and fish products, toys, forest products, gems and

jewelry, medical equipment and instruments,

chemicals, and a telecommunications mutual

recognition agreement.) The remaining six sectors

(autos, oilseeds, food, civil aircraft,fertilizers,and

rubber) were to be further developed for review by

trade ministers in June and possibly recommended to

APEC leaders in November 1998. The February

discussions on EVSL were positive overall, but Japan,

Korea, and China continued to be generally cool to the

concept of EVSL. Chile and Mexico opposed EVSL

85 For background information on Early Voluntary

Sectoral Liberalization, see USITC, The Year in Trade:

OTAP 1997, pp. 72-73.

86 In addition to these meetings, there were five other

ministerial meetings in 1998: Finance, Small and

Medium-Size Enterprise, Science and Technology, Energy,

and Women’s Ministerial.

87 U.S. Department of State telegram, “Request Support

on the APEC Early Voluntary Sectoral Liberalization

Initiative,” message reference No. 047098, prepared by the

U.S. Department of State, Washington, DC, Mar. 16, 1998.
47

Case Issue Appealed by Status

USA-98-2008-01 Cross-Border Trucking Services

and Investment1

Government of

Mexico

Report due date to be

determined.

USA-98-2008-02 Cross-Border Bus Services Government of

Mexico

Report due date to be

determined

1 See above section on Market Access for more details on transportation services disputes.

outright, favoring liberalization of all sectors, rather

than a select number. The position of the ASEAN

members was uncertain. Canada, Hong Kong,

Singapore, Australia, New Zealand, and the United

States supported EVSL.88

During the June 22-23 APEC trade ministerial

meeting in Kuching, APEC trade ministers directed the

senior officials to finish EVSL work in the nine sectors

by September.89 With regard to the ninth sector,

APEC completed a Mutual Recognition Arrangement

(MRA) for telecommunications equipment on June 5,

1998.90 The MRA is expected to increase trade in

telecommunications and information equipment among

members of APEC, affecting approximately $45 billion

in current trade flows. At the trade ministerial

meeting, the specific product scope and basic

timetables for implementing the agreements were

decided. Members also agreed to set up work

programs to study nontariff measures (NTMs) in each

of the nine sectors and to decide how they should be

addressed. APEC ministers did not make a decision

about how the EVSL initiative should relate to work in

the WTO, except for a notification upon completion of

the APEC work.91 Following the trade ministerial

meeting, APEC focused on ways of addressing

product-specific concerns of APEC members and the

rest of its work program on business facilitation,

economic and technical cooperation, and the

completion of technical work on the energy and

environment sectors.92

88 Ibid.

89 APEC, “Meeting of Ministers Responsible for Trade,”

Kuching, Sarawak, June 22-23, 1998, found at Internet

address http://www.apec.sec.org.sg/virtuallib/minismtg/mtgtr

d98.html, retrieved on Jan. 3, 1998.

90 APEC, “Ministerial Declaration on the APEC Mutual

Recognition Arrangement for Conformity Assessment of

Telecommunications Equipment,” June 3-5, 1998,

Singapore.

91 APEC, “Meeting of Ministers Responsible for Trade,”

Kuching, Sarawak, June 22-23, 1998, found at Internet

address http://www.apec.sec.org.sg/virtualib/minismtg/mtgtr

d98. html, retrieved on Jan. 3, 1998.

92 USTR, “Barshefsky Welcomes APEC Sectoral

Agreement Plans to Move Initiative to WTO,” Nov. 15,

1998, found at Internet address

http://www.usiagov/admin/025/wwwhstr1.html.

At the APEC ministerial meeting during November

14-15, with regard to EVSL, APEC ministers agreed to

the lowering of tariffs and other trade barriers in the

nine key sectors, including end-rates, end-dates, and

product coverage.93 The ministers agreed to broaden

participation in the agreement by striving to conclude

an agreement in the WTO by the end of 1999 on the

nine-sector package. In the six remaining sectors,

covering $1.6 trillion in trade, ministers agreed to

advance market-opening work in time for review by

the trade ministers in June 1999.94 In reaching the

agreement, the ministers had to overcome reservations

by some countries and a refusal by Japan to agree to

open its market for fish and forest products.95

In addition to supporting EVSL, APEC ministers

endorsed the submission of improved Individual

Action Plans (IAPs), welcomed IAPs from the three

new APEC members (Russia, Vietnam, and Peru), and

agreed that in 1999, senior officials should review

overall progress in the IAPs. In 1999, the United

States and four other countries will submit their IAPs

for voluntary peer review. Ministers called for further

development of the Collective Action Plans (CAPs)

and their implementation in 1999, including intensified

work on trade facilitation. In the area of trade and

investment facilitation, the ministers welcomed the

work of the Committee on Trade and Investment and

agreed that emphasis must be given to action-oriented

and focused outcomes that will provide tangible

benefits to members. In the area of Economic and

Technical Cooperation (ECOTECH), the ministers

expressed satisfaction with progress in the six priority

areas, particularly the focus on capacity building, and

93 The agreement was reached by 16 members, i.e.,

excluding Mexico and Chile.

94 APEC, Tenth APEC Ministerial Meeting Joint

Statement, Kuala Lumpur, Malaysia, Nov. 14-15, 1998,

found at Internet address www.usia.gov/regional/ea/apec/

klmindec.htm, retrieved on Nov. 18, 1998.

95 “Press Briefing by U.S. Trade Representative

Charlene Barshefsky,” Palace of Golden Horses, Kuala

Lumpur, Malaysia, Nov. 15, 1998, found at Internet address

http://www.usia.gov/admin/025/wwwhbar2.html, retrieved

on Nov. 20, 1998.
48

called for intensified work to further improve the

effectiveness of economic and technical cooperation

activities.96

With regard to electronic commerce, the ministers

endorsed the work of the APEC Electronic Commerce

Task Force, which promotes greater understanding of

electronic commerce issues. The work program for the

Task Force includes topics such as Y2K, paperless

trading, and “Virtual” Electronic Commerce/

Multimedia Resource Network, for example. Ministers

endorsed the APEC Blueprint for Action on Electronic

Commerce, setting out broad themes relating to

cooperation on electronic commerce and specific

future activities for an APEC-wide electronic

commerce work program. Ministers agreed to

establish a Steering Group to coordinate action on the

Blueprint.97

APEC is in the midst of a three-year review of

APEC’s management process. APEC ministers

directed senior officials to forward their

recommendations to the ministers in September 1999.

In addition, ministers dissolved a working group,

adopted common review guidelines for self-review by

APEC forums, adopted a moratorium on the creation

of new forums during the review period, and

redesignated the Budget and Administrative

Committee (BAC) as the Budget and Management

Committee (BMC).98

At their meeting during November 17-18, 1998,

APEC leaders emphasized four main areas in

addressing the Asian financial crisis: growth-oriented

macroeconomic policies, social safety net issues,

financial- and corporate-sector restructuring, and

reform of financial architecture. APEC leaders called

on the finance ministers to develop measures to

implement their proposals for dealing with the

financial crisis. The leaders welcomed Japan’s

proposed financial package of $30 billion to support

economic recovery efforts in Asia.99

96 For background information on the six priority areas,

see USITC, The Year in Trade: OTAP 1997, UISTC

publication 3103, May 1998, pp. 73-74.

97 Ibid.

98 Ibid.

99 APEC, APEC Leaders’ Declaration, Kuala Lumpur,

Malaysia, Nov. 18, 1998, found at Internet address

http://www.usia.gov/admin/025/wwwhklld.html, retrieved on

Nov. 20, 1998.

Free Trade Area of the

Americas (FTAA)

At the December 1994 First Summit of the

Americas in Miami, Florida (the Miami Summit), the

34 democratically elected heads of state of the Western

Hemisphere committed to form a Free Trade Area of

the Americas (FTAA) and to complete negotiations for

the agreement by 2005. The leaders at the Miami

Summit also committed to achieve substantial progress

toward building the FTAA by 2000.100 After nearly

four years of preliminary discussions and preparatory

work addressing such issues as the compatibility of the

FTAA with existing or new subregional economic

groupings, the role of input from labor, and the phasing

and scope of the negotiations, the heads of state of the

Western Hemisphere announced the commencement of

formal negotiations for the FTAA in Santiago, Chile, at

the Second Summit of the Americas (Santiago

Summit) in April 1998.101

Structure and Venue of FTAA

Negotiations

The structure of the FTAA negotiations was

established at the fourth meeting of the hemisphere’s

trade ministers in March 1998 at San José, Costa Rica

(fourth ministerial meeting).102 In their Joint

Declaration, the ministers named countries to serve as

chairman and vice-chairman for the overall FTAA

process. Chairmanship of the negotiations will rotate

among different countries every 18 months, or at the

conclusion of each ministerial meeting. The countries

(chairman/vice-chairman) so designated and the

respective periods of their designation are

Canada/Argentina (May 1, 1998-October 31, 1999);

Argentina/Ecuador (November 1, 1999-April 30,

2001); Ecuador/Chile (May 1, 2001-October 31,

100 The commitments made at the Miami Summit were

published in the Declaration of Principles and Plan of

Action, reprinted in Business America, Dec. 1994, pp. 10-13;

the complete text is also posted at the official FTAA Web

site, found at Internet address

http://www.ftaa-alca.org/EnglishVersion/view_e.htm. This

series of reports has summarized key events related to the

FTAA.

101 The complete text of the Santiago Summit Joint

Declaration is posted at the official FTAA Web site, found at

Internet address

http://www.ftaa-alca.org/EnglishVersion/view_e.htm.

102 The structure of the FTAA negotiations and other

results of the March 1998 trade ministerial meeting are

discussed in more detail in USITC, The Year in Trade:

OTAP 1997, USITC publication 3103, May 1998, p. 77.
49

2002); and Brazil-United States joint chairmen with no

vice-chairman (November 1, 2002-December 31, 2004,

or until the conclusion of the negotiations).103

The fourth ministerial meeting established nine

FTAA negotiating groups where substantive talks will

occur. The negotiating groups will address (1) market

access; (2) investment; (3) services; (4) government

procurement; (5) dispute settlement; (6) agriculture; (7)

intellectual property rights; (8) subsidies, antidumping,

and countervailing duties; and (9) competition policy.

The meetings of the negotiating groups will be held in

a single venue, which will rotate among the following

three locations: Miami, United States (May 1,

1998-February 28, 2001); Panama City, Panama

(March 1, 2001-February 28, 2003); and Mexico City,

Mexico (March 1, 2003-December 31, 2004, or until

the conclusion of the negotiations).104

In addition to the negotiating groups, the fourth

ministerial meeting also established three special

committees to address specific issues of interest to the

FTAA countries. A committee on civil society is to

seek the views of all segments of society, such as

business, labor, consumers, environmental interests,

academics, and others. A joint private-sectorpublic-sector committee on electronic commerce is to

recommend ways to expand the hemisphere’s

electronic marketplace. A consultative group chaired

103 Fourth Ministerial Joint Declaration, Mar. 19, 1998,

obtained from the official FTAA Web site, found at Internet

address

http://www.ftaa-alca.org/EnglishVersion/view_e.htm.

104 Ibid.

by Jamaica is to work to ensure the full participation of

smaller economies in the FTAA process.105

The fourth ministerial meeting established a Trade

Negotiations Committee (TNC) at the vice-ministerial

level to oversee the FTAA negotiations. The TNC is to

guide the work of the negotiating groups, decide on the

overall architecture of the agreement and institutional

issues, and ensure the full participation of all the

countries in the FTAA process.106

Status of the Negotiations

Following the Santiago Summit, the first

negotiating group to meet was that for market access,

held in Miami on August 31-September 2, 1998. This

meeting marked the formal beginning of substantive

FTAA negotiations. All of the other negotiating

groups had met by year-end 1998. The three special

committees (civil society, electronic commerce, and

smaller economies) held their first meetings in

October 1998. At its meeting, the committee on civil

society established a period for public comments from

November 1, 1998, through March 31, 1999.107 The

TNC met twice during 1998, in Buenos Aires,

Argentina, on June 17-19, 1998, and in Paramaribo,

Suriname, on December 2-3, 1998.

105 Ibid.

106 Ibid.

107 USTR, “Free Trade Area of the Americas Off to

Strong Start from Miami Talks,” press release 98-94, Oct.

22, 1998.

51

CHAPTER 4

U.S. Relations With Major

Trading Partners

This chapter reviews bilateral trade relations and

issues with seven major U.S. trading partners during

1998: the European Union, Japan, Canada, Mexico,

China, Taiwan, and Korea. Appendix tables A–1 to 21

provide detailed information on U.S. trade with these

partners.

European Union (EU)

U.S. and EU officials continued to manage an

active trade agenda in 1998. During the year, they

launched a new, targeted trade initiative, the

Transatlantic Economic Partnership (TEP). The TEP

action plan outlines specific ways that the United

States and EU can cooperate to facilitate bilateral trade

and strengthen the multilateral trading system.

Bilaterally, the TEP covers such issues as regulatory

barriers affecting trade in goods and services,

government procurement, and intellectual property

rights. However, trade officials also addressed a series

of bilateral disputes, most notably EU implementation

of a WTO–consistent banana import regime, which

remained unresolved by year–end. Following delays, a

mutual recognition agreement (MRA) covering six

sectors was implemented on December 1, but

implementation of a Veterinary Equivalence

Agreement remained stalled at year–end.

Transatlantic Economic

Partnership

The New Transatlantic Agenda (NTA), launched

by U.S. and EU leaders in 1995, provided a framework

for improving and updating the bilateral relationship.1

One of the NTA’s goals was to create a New

Transatlantic Marketplace “by progressively reducing

1 For more information on the NTA, see U.S.

International Trade Commission, The Year in Trade:

Operation of the Trade Agreements Program (OTAP) 1995, USITC Publication 2971, Aug. 1996, pp. 39–42.

or eliminating barriers that hinder the flow of goods,

services, and capital.”2 Although the NTA has been

successful at reducing barriers—for example, through

the conclusion of a mutual recognition agreement and a

customs cooperation agreement in 1997—obstacles

remain. In March 1998, the European Commission

proposed a specific plan for creating the New

Transatlantic Marketplace. The proposal contained four

major goals: (1) removal of technical barriers to trade

through increased mutual recognition and/or

harmonization; (2) elimination of all industrial tariffs

by 2010 on a multilateral basis; (3) creation of a free

trade area in services; and (4) further liberalization of

investment, public procurement, and intellectual

property.3 Because of internal EU opposition,

particularly from France, the proposal did not go

forward. However, the United States and EU agreed

that a new concrete, organized agenda should be

developed.

At the May 18 semiannual summit of U.S. and EU

heads of state, the leaders approved a more targeted

trade initiative—the Transatlantic Economic

Partnership—to strengthen and extend “multilateral

and bilateral cooperation and common actions in the

field of trade and investment.”4 The aim of the TEP is

to facilitate trade on a bilateral basis and to strengthen

the multilateral trading system through cooperation in

the run–up to the next WTO Ministerial Conference in

1999. To carry out these bilateral and multilateral

initiatives, the TEP calls for the participation of

business, labor, consumers, environment, and other

nongovernmental organizations (NGOs) in the process.

The United States and the EU agreed to draw up a joint

2 “Transatlantic Agenda,” found at Internet address

http://www.eurunion.org, retrieved Oct. 30, 1998.

3 European Commission Delegation, Office of Press and

Public Affairs, “European Commission Backs New

Transatlantic Marketplace,” European Union News, Mar. 11,

1998.

4 “The Transatlantic Economic Partnership,” May 18,

1998, found at Internet address http://www.useu.be, retrieved

Oct. 30, 1998.
52

action plan with a specific timetable for achieving

concrete results by the year 2000.5

On the bilateral front, U.S. and EU officials agreed

under the TEP to reduce or eliminate barriers to trade

and investment, with a particular emphasis on the

removal of regulatory barriers facing both goods and

services. Included in the plan will be efforts to improve

scientific and regulatory cooperation in agriculture,

including biotechnology and food safety. Building on

past success, both sides agreed to negotiate more

mutual recognition agreements to reduce standards–

related barriers to trade in goods sectors, but also in

services. Leaders further agreed to improve the

protection of intellectual property, reduce its costs, and

facilitate access to public procurement markets by

enhancing the compatibility of electronic procurement

information and government contracting systems.

Multilaterally, the United States and the EU pledged to

strengthen the multilateral trading system and

liberalize trade. They listed shared objectives,

including full implementation of WTO commitments,

development of “ambitious negotiating agendas” when

market–opening WTO talks begin for agriculture and

services, reduction of industrial tariffs on a normal

trade relations (NTR) basis, further improvement in

intellectual property protection, development of a

WTO work program for electronic commerce,

advancing core labor standards on an international

basis, and the development of common approaches in

appropriate multilateral forums on investment,

competition, public procurement, and trade and the

environment.6

In the months following the May summit, U.S. and

EU officials worked together to complete a joint action

plan, or agenda, for implementing the TEP. Remaining

issues, such as how to strengthen intellectual property

protection and liberalize government procurement,

were resolved in early November. On November 9, the

EU’s General Affairs Council approved the action

plan, permitting the European Commission to enter

into negotiations with the United States. Leaders

formally launched TEP negotiations at the U.S.–EU

semiannual summit on December 18.

The action plan requires both cooperative actions

and actual trade negotiations. Multilaterally, the United

States and the EU agreed to meet regularly “to reach

5 Ibid.

6 The White House, Office of the Press Secretary, “New

Transatlantic Economic Partnership to Accelerate Trade

Growth,” and Fact Sheet, “Building a Stronger World

Community: The Transatlantic Economic Partnership,” May

18, 1998; and “The Transatlantic Economic Partnership,”

May 18, 1998, found at Internet address http://www.useu.be,

retrieved Oct. 30, 1998.

a closer understanding on the key issues” that will be

raised during the next round of multilateral trade

negotiations and to “coordinate approaches and

objectives wherever possible across the agenda . . . .”7

Bilaterally, both sides agreed to remove regulatory

barriers to trade through closer cooperation between

regulators and negotiation of mutual recognition

agreements in new sectors, including service sectors

such as engineers. In the areas of food safety, plant and

animal health, and biotechnology, the plan calls for

increased regulatory and scientific cooperation,

including an “early warning” food–safety system that

would inform each side of the legislative/regulatory

initiatives of the other. With respect to government

procurement, the two sides will seek “balanced

expansion of market access opportunities for their

companies [including] cooperation to ensure

compatibility between each other’s electronic

procurement notification and tendering systems.” The

United States and the EU will work together to

improve the protection of intellectual property and will

pursue both short–term goals, such as reducing the

costs of patent protection, and long–term goals, such as

examining the appropriate means to grant patent

protection to inventions related to computer programs.

Most target dates for completion of bilateral activities

are set for the end of 1999 or earlier.8

To gain the “broadest possible support” for trade

policies,9 the TEP action plan calls for the formation of

the Transatlantic Environment Dialogue to join the

Transatlantic Business Dialogue (TABD), as well as

the new Transatlantic Labor Dialogue and new

Transatlantic Consumer Dialogue. The purpose of

these groups is to provide organized, considered input

into the TEP process and each of the TEP initiatives.

Formed in 1995, the TABD—comprising top U.S. and

EU business leaders—was the first of the advisory

groups to be established. Since then, it has actively

participated in shaping the U.S.–EU trade relationship

by identifying business priorities for trade

liberalization and developing practical recommendations on how to improve the Transatlantic

7 European Commission Delegation, Office of Press and

Public Affairs, “EU Foreign Ministers Endorse EU–US

Action Plan for Transatlantic Economic Partnership,”

European Union News, Nov. 9, 1998.

8 “Transatlantic Economic Partnership Action Plan,”

Nov. 9, 1998, found at Internet address

http://europa.eu.int/comm/dg01/1109tep.htm, retrieved Jan.

5, 1999; and USTR, “United States and European Union

Conclude Joint Action Plan for the Transatlantic Economic

Partnership,” press release 98–99 and Fact Sheet, Nov. 9,

1998.

9 USTR, “Statement by United States Trade

Representative Charlene Barshefsky Concerning the

U.S.–EU Summit Trade Discussions,” press release 98–112,

Dec. 18, 1998.
53

Marketplace. In 1998, it developed a scorecard

approach to monitor progress on TABD

recommendations and found that concrete actions had

been taken on one–third of its recommendations and

that more than one–half were under active discussion.

The new groups, representing environmental, labor,

and consumer views, are likely to be modeled after the

TABD.

Bananas

The EU banana regime, which entered into force

on July 1, 1993,10 favors bananas from domestic

producers and from former European colonies in

Africa, the Caribbean, and the Pacific (ACP countries)

over non–ACP bananas from Latin America. The

regime imposes duty and quota restrictions on imports

of non–ACP bananas, such as those from Central and

South American countries, and limits the amount of

non–ACP bananas that can be marketed at the in–quota

duty rate by traditional operators, including U.S.

companies.11 Although the United States exports

virtually no bananas, the licensing system has

adversely affected U.S. banana distribution companies,

such as Chiquita and Dole Foods.12

In 1994, a GATT dispute panel found that the EU

banana regime was inconsistent with EU obligations

under the GATT, but the report was never adopted

because it was blocked by the EU. In 1996, Ecuador,

Guatemala, Honduras, Mexico, and the United States

requested a WTO dispute–settlement panel to examine

the EU regime for the importation, sale, and

distribution of bananas. The 1997 Panel Report and

subsequent Appellate Report ruled the EU banana

regime inconsistent with GATT 1994 and the General

Agreement on Trade in Services (GATS) “on over a

dozen counts.”13 The reports also found the EU in

violation of the WTO Agreement on Import Licensing

Procedures. The WTO granted the EU 15 months, from

September 25, 1997, to January 1, 1999, to comply

with WTO obligations.

On January 14, 1998, the European Commission

proposed to modify the banana regime and forwarded

10 EC Council Regulation 404/93.

11 For more background, see U.S. International Trade

Commission, The Year in Trade: OTAP, 49th report, 1997, USITC Publication 3103, May 1998, pp. 99–100.

12 U.S. Department of State telegram, “Bananas: Status

and Summary,” message reference No. 105004, prepared by

U.S. Department of State, Washington, June 11, 1998.

13 USTR, “USTR Barshefsky Reacts to EC Banana

Decision,” press release 98–63, June 26, 1998.

its proposal to the EC Council for its consideration.

(The EC Council’s approval is required before a

European Commission proposal can be implemented.)

The new regime, the European Commission claimed,

would allow the EU to honor its WTO obligations as

well as its commitments to the ACP nations under the

Fourth Lomé Convention, a trade and aid pact between

the EU and ACP countries. Highlights of the modified

banana regime proposal included the following:14

 Maintains the Latin American banana

tariff–rate quota at the current level of 2.2

million metric tons at the current rate of duty,

ECU 75/ton, and maintains the duty of ECU

765/ton on imports beyond the quota.

 Establishes a new, autonomous Latin American

tariff–rate quota of 353,000 tons at a duty rate of

ECU 300/ton, to account for EU enlargement

(Austria, Finland, and Sweden joined the EU in

1995) and to ensure sufficient market supply.

 Allocates a percentage of the tariff–rate quota to

exporting countries with a “substantial interest”

in the market for bananas, while other suppliers

would have access to the remaining share of the

quota.

 Maintains a maximum quantity allowance of

857,700 metric tons at a zero duty for traditional

ACP imports.

 Abolishes the current licensing system and

replaces it with a “traditional/newcomer

system.”

On February 10, 1998, the United States Trade

Representative (USTR) determined under section 304

of the Trade Act of 1974 that the EU banana regime

discriminates against U.S. banana–marketing

companies and distorts international banana trade,

which deny benefits entitled to the United States under

GATT 1994 and the General Agreement on Trade in

Services. At the same time, the USTR terminated the

section 301 investigation that was initiated in 1995, in

light of the EU’s stated intention to “comply with its

international obligations and to implement all the

14 European Commission Delegation, Office of Press

and Public Affairs, “European Commission Proposes to

Modify the EU Banana Regime,” European Union News, Jan. 15, 1998.
54

rulings and recommendations in the WTO reports

. . . .”15 However, throughout the year, the USTR

continued to monitor the EU’s implementation of the

WTO rulings, as required under section 306 of the

Act.16

During spring 1998, the United States and Latin

American complainants, including Ecuador,

Guatemala, Honduras, Mexico, and Panama,17 raised

concerns about the consistency of the European

Commission’s proposal with WTO commitments. One

of the major U.S. concerns was the continued violation

of GATT article XIII (nondiscriminatory

administration of quantitative restrictions) through the

EU’s use of two “separate regimes.” More specifically,

the EU allocates shares of its banana market to Latin

American countries using one set of criteria and

allocates shares to ACP countries using another set of

criteria. According to U.S. officials, to be

WTO–compatible, the EU must adopt a single

tariff–rate quota covering all suppliers and must

allocate shares of the tariff–rate quota among

supplying countries based on the same appropriate set

of criteria.18

Despite numerous U.S. attempts to persuade EU

and member–state officials that the EC Commission

proposal was inadequate,19 on June 26 the EC

Agriculture Council approved the modified banana

regime.20 Frans Fischler, Commissioner of

Agriculture and Rural Development, said the new

agreement “fully respects our WTO obligations while

also ensuring European Union consumer and producer

interests are respected together with our obligations to

ACP countries.”21 The approved regime had few

revisions, most notably:22

15 63 F.R. 8248–49.

16 Ibid.

17 Panama was not among the original complainants in

the WTO dispute because it was not a WTO member at that

time.

18 U.S. Department of State telegram, “Bananas: Status

and Summary,” message reference No. 105004, prepared by

U.S. Department of State, Washington, DC, June 11, 1998.

19 See for example, the time line in USTR, “USTR

Announces List of European Products Subject to Increased

Tariffs,” press release 98–113, Dec. 21, 1998.

20 The Agriculture Council formally adopted the new

banana regime (EC Council Regulation 1637/98) on July 20,

1998.

21 European Commission, ““Agriculture Council

Agreement is Well Balanced,” Franz Fischler,” press release

IP/98/575, June 26, 1998, found at Internet address

http://europa.eu.int/rapid, retrieved Oct. 26, 1998.

22 Ibid.; and “2110th Council Meeting Agriculture,

Luxembourg, 22/23/24/25 June 1998,” press release

Pres/98/214, July 7, 1998, found at Internet address

http://europa.eu.int/rapid, retrieved Oct. 26, 1998.

 The autonomous tariff–rate quota of 353,000

tons would face a rate of duty of ECU 75/ton,

consistent with the tariff–rate quota of 2.2

million tons.

 Licenses would be distributed to “actual

importers on the basis of the presentation of a

utilized import license and/or, in particular in

the case of new member states, equivalent

proofs, where necessary,” using the 3 years,

1994–96, as the reference period for

determining operators’ rights.

Pursuant to the new regulation, the EC Commission

adopted the new licensing arrangement for bananas on

October 28.23

Immediately following the Agriculture Council’s

decision, USTR Barshefsky charged that the new

regime “would perpetuate WTO violations [and that]

the United States will not hesitate to exercise its full

rights under the WTO and take all available actions to

protect U.S. interests, [including] the withdrawal of

concessions.”24 In July, September, and November,

the United States tried to reconvene the original WTO

dispute–settlement panel to rule on the EU’s new

banana regime, but “each time the EC either outright

refused or imposed unacceptable conditions.”25 In its

request on November 19,26 the United States proposed

that the EU agree to reconvene the original panel to

make a ruling on an expedited basis–by January 15,

1999–but the EU responded that it would not cooperate

as long as the United States continued to threaten

retaliation.27

On November 10, the USTR published a notice in

the Federal Register requesting public comments on a

proposed list of EU products that would face

retaliatory tariffs of 100 percent ad valorem should the

EU fail to implement a WTO–consistent regime by

January 1, 1999.28 The list included certain cheeses,

wines, candles, handbags, apparel, household

23 EC Commission Regulation 2362/98. 24 USTR, “USTR Barshefsky Reacts to EC Banana

Decision,” press release 98–63, June 26, 1998. 25 USTR, “United States To Apply Its WTO Retaliatory

Rights in Bananas Case,” press release 99–01, Jan. 14, 1999. 26 USTR, “USTR Proposes Expedited Ruling on New

EU Banana Regime,” press release 98–101, Nov. 19, 1998. 27 European Commission Delegation, Office of Press

and Public Affairs, “Brittan Urges US To Pursue WTO

Dispute Settlement Procedures On EU Banana Regime,”

European Union News, Nov. 20, 1998. For an overview of

the EU position, see European Union, “The US/EU Banana

Dispute: Unilateral US Retaliation Not in Line with WTO

Rules and Politically Unwise, Sir Leon Brittan Says,” press

release 96/98, Nov. 10, 1998, found at Internet address

http://www.eurunion.org/news/press/1998–4/pr96–98.htm,

retrieved Nov. 12, 1998.

28 63 F.R. 63099.
55

appliances, and toys. The USTR published the final,

definitive list of products subject to retaliation on

December 21.29 The list includes pecorino cheese,

sweet biscuits, bath preparations, candles, plastic plates

and sheets, handbags, wallets, felt paper, folding

cartons, greeting cards, lithographs, cashmere sweaters,

bed linen, batteries, coffee and tea makers, and

chandeliers. Pork was later added to the list. The list of

products does not affect U.S. imports from the

Netherlands or Denmark “in recognition of their voting

records against the adoption of the new EU banana

regime.”30

In the meantime, on December 15 at a meeting of

the WTO’s Dispute Settlement Body (DSB), the EU

requested that a panel be established “to determine that

the implementing measures of the EC must be

presumed to conform to WTO rules unless challenged

in accordance with Dispute Settlement Understanding

(DSU) procedures.”31 On December 18, Ecuador

requested that the original panel be reconvened to

examine the WTO–consistency of the modified banana

regime and “in addition to issuing its rulings, suggest

how the European Communities might implement its

recommendations.”32 On January 12, 1999, the DSB

agreed to reconvene the original panel to examine both

Ecuador’s and the EU’s requests.33

Two days later, on January 14, the United States

formally notified the WTO’s DSB of its intention to

request authorization to retaliate against the EU at the

January 25 meeting of the DSB. The retaliatory

measures were valued at $520 million, “an estimate of

the annual harm done to the U.S. economy resulting

29 USTR, “USTR Announces List of European Products

Subject to Increased Tariffs,” press release 98–113, Dec. 21,

1998.

30 Ibid.

31 WTO, “Overview of the State–of–Play of WTO

Disputes,” found at Internet address

http://www.wto.org/wto/dispute/bulletin.htm, retrieved 

Jan. 22, 1999.

32 WTO, “European Communities–Regime for the

Importation, Sale and Distribution of Bananas,”

WT/DS27/41, Dec. 18, 1998, found at Internet address

http://www.wto.org/wto/new/27_41.htm, retrieved Jan. 22,

1999.

33 The panel reports were circulated April 12, 1999.

The panel requested by the EU found it could not agree with

the EU’s position that it must be presumed to be in

compliance with DSB recommendations, since Ecuador had

actually challenged the WTO–consistency of the EU’s

modified banana regime. With respect to the panel requested

by Ecuador, the panel found that the EU’s modified banana

regime was not fully compatible with the EU’s WTO

obligations. See, WTO, “Overview of State–of–play of

WTO Disputes,” found at Internet address

http://www.wto.org/wto/dispute/bulletin.htm, retrieved 

Apr. 14, 1999.

from the EC’s banana regime.”34 Following a

week–long impasse during which procedural

maneuvers prevented the January 25 DSB meeting

from taking place, the United States and the EU agreed

on next steps. On January 29, the EU challenged the

amount of the retaliatory measures and requested

arbitration under article 22.6 of the DSU. In addition to

determining the WTO–consistency of the new EU

regime, the original panel was reconvened to arbitrate

the level of the suspension. Only after arbitration is

concluded will the U.S. request to suspend tariff

concessions be authorized by the DSB.35

The U.S.–EU banana dispute is the first major

controversial case to progress so far through the

WTO’s dispute–settlement system, established under

the 1995 DSU.36 In addition to raising procedural

questions, the United States, as well as other WTO

members, have voiced concerns that the EU’s failure to

implement the panel reports, as well as the Appellate

Body reports, may undermine the integrated

dispute–settlement system that is the foundation for

enforcing WTO multilateral trade rules.37

34 USTR, “United States to Apply its WTO Retaliatory

Rights in Bananas Case,” press release 99–01, Jan. 14, 1999.

See also WTO, “European Communities Regime for the

Importation, Sale and Distribution of Bananas,”

WT/DS27/43, Jan. 14, 1999.

35 WTO, “EC, US Accept Ruggiero Compromise on

Banana Dispute,” found at Internet address http:/

www.wto.org/wto/new/dsweb.htm, retrieved Feb. 9, 1999.

On March 2, the arbitration panel was scheduled to rule;

however, it said it would need more time to make a decision.

On March 3, the U.S. Customs Service began “withholding

liquidation” on selected imports from the EU valued at over

$500 million. The arbitrator’s report, circulated April 9,

found that the level of suspension was equal to $191.4

million, rather than $520 million. As a result, the USTR

refined its list of products subject to retaliatory tariffs of 100

percent ad valorem to include bath preparations, certain

handbags and wallets, felt paper and paperboard,

lithographs, bed linens, batteries, and coffee and tea makers

not from Italy. The DSB authorized the U.S. suspension of

tariff concessions on April 19, the first time the WTO has

authorized retaliation. The United States imposed the

retaliatory duties retroactive to March 3. USTR, “USTR

Announces Final Product List in Bananas Dispute,” press

release 99–35, Apr. 9, 1999.

36 In 1999, the United States has expressed concern that

another dispute with the EU could similarly escalate if the

EU does not implement WTO recommendations against its

ban on meat from animals treated with growth–romoting

hormones by May 13, 1999, as scheduled. For more

background on this issue, see U.S. International Trade

Commission, The Year in Trade:OTAP, 49th report, 1997,

USITC Publication 3103, May 1998, pp. 101–102.

37 USTR, “USTR Announces List of European Products

Subject to Increased Tariffs,” press release 98–113, Dec. 21,

1998; and WTO, “EC, US Accept Ruggiero Compromise on

Banana Dispute,” found at Internet address

http://www.wto.org/wto/new/dsweb.htm, retrieved Feb. 9,

1999.
56

Other Issues

Mutual Recognition Agreements

After years of negotiations, in 1997 the United

States and the EU concluded a mutual recognition

agreement (MRA) covering six sectors: (1)

telecommunications and information technology

equipment, (2) network and electromagnetic

compatibility (EMC) for electrical products, (3)

electrical safety for electrical products, (4) good

manufacturing practices (GMP) for pharmaceutical

products, (5) GMP and product assessment for certain

medical devices, and (6) safety of recreational craft.38

The MRA establishes conditions under which

regulatory authorities in the United States and the EU

will directly accept the results of conformity

assessment procedures (e.g., testing, inspecting, and

certifying) generated by bodies in the other party,

obviating the need for costly and sometimes

duplicative tests and inspections. U.S. and EU officials

formally signed the MRA on May 18, 1998, at the

semiannual U.S.–EU summit. It was scheduled to be

implemented on October 1, 1998, but entry into force

was delayed because of some technical issues. For

example, because of recent U.S. legislation, four

specific medical devices had to be removed from the

agreement’s scope. On October 30, U.S. and EU

officials exchanged side letters that resolved the

remaining issues.39 The MRA entered into force on

December 1, 1998, launching confidence–building

transition periods of 2–3 years, depending on the

sector.

Under the TEP, U.S. and EU leaders agreed to

“identify specific sectors in which an extension of the

current MRA appears feasible and desirable.”40 The

TABD (see above) strongly supports MRA expansion

to reduce transatlantic regulatory barriers. As part of

this process, on December 9, USTR published a

Federal Register notice requesting comments on three

sectors: marine safety equipment, road safety

equipment, and calibration services. U.S. officials are

considering proposing to the EU the extension of the

agreement to these sectors early in 1999.41

38 For an in–depth discussion of the MRA, see U.S.

International Trade Commission, The Year in Trade: OTAP,

49th report, 1997, USITC publication 3103, May 1998, pp.

95–97.

39 U.S. Department of State telegram, “Mutual

Recognition Agreement (MRA) – Exchange of Notes

Verbales and Side Letters,” message reference No. 6666,

prepared by U.S. Mission to the EU, Brussels, Nov. 3, 1998.

40 “Transatlantic Economic Partnership Action Plan,”

Nov. 9, 1998, found at Internet address

http://europa.eu.int./comm/dg01tep.htm, retrieved Jan. 5,

1999.

41 63 F.R. 67973–67975.

Veterinary Equivalence Agreement

The United States and the EU concluded a

Veterinary Equivalence Agreement (VEA) in April

1997, but by year–end 1998 it had not yet been

implemented.42 The VEA establishes a mechanism for

recognizing the equivalence of U.S. and EU sanitary

measures affecting trade of virtually all live animals

and animal products. In March 1998, the EU’s

Agriculture Council approved the agreement in

principle, but made its signature contingent on U.S.

publication of a proposed rule on regionalization that

the Council agrees is consistent with U.S.

commitments. The EU’s policy of regionalization

allows animals and animal products from regions

determined to be disease–free to be traded without

impediment, even though other regions of a given EU

member state are still found to contain an infection.

For most of the 17 diseases covered by the VEA’s

regionalization obligation, the United States recognizes

the EU’s regional animal health status as defined by the

EU. However, near the end of the year, a U.S. finding

on the regional status of one of the diseases differed

from that of the EU. As a result, the United States has

not yet published a rule on regionalization, and the

VEA remains stalled.43

Specified Risk Material Ban

In July 1997, the European Commission adopted a

decision that banned the use of certain animal

byproducts known as “specified risk materials”

(SRMs) in food; feed; and medical, pharmaceutical,

and cosmetic products.44 The ban grew out of a

concern over the risk of transmission to humans and

other animals of bovine spongiform encephalopathy

(BSE), commonly referred to as mad–cow disease. The

ban was originally scheduled to enter into effect on

January 1, 1998, but was delayed until April 1, 1998,

and subsequently until January 1, 1999. EU member

states have opposed the ban because it would be too

42 For an in–depth discussion of the VEA, see U.S.

International Trade Commission, The Year in Trade: OTAP,

49th report, 1997, USITC publication 3103, May 1998, pp.

102–103.

43 U.S. Department of State telegram, “U.S.–EU

Veterinary Equivalency Agreement Hits Snag,” message

reference No. 7132, prepared by U.S. Mission to the EU,

Brussels, Nov. 23, 1998.

44 97/534/EC, Commission Decision of 30 July 1997 on

the prohibition of the use of materials presenting risks as

regards transmissible spongiform encephalopathy, Official

Journal of the European Communities (OJ) L 216, p. 95.

For more background, see USITC, The Year in Trade: OTAP

1997, USITC publication 3103, May 1998, pp. 103–104.
57

restrictive and apply to products irrespective of a

country’s or member state’s level of risk for BSE.45

The United States has also criticized the ban. Because

tallow, tallow derivatives, and gelatin are widely used

in the manufacture of food, pharmaceuticals, and

cosmetics, U.S. exports could be seriously affected.

Moreover, there have been no known cases of BSE in

the United States.46

In November, the European Commission proposed

a regulation that would provide the legal basis for the

prevention and control of certain transmissible

spongiform encephalopathies (TSEs).47 The proposal

addresses human and animal health aspects of food and

feed production relating to the risks of exposure to all

TSEs and does not apply to industrial, cosmetic, or

pharmaceutical products or to medical devices. It treats

national trade, intra–EU trade, imports, and exports in

an equivalent manner. After analysis of relevant data,

member states and non–EU countries will be placed in

one of four categories defining their level of TSE risk.

The proposal’s requirements for the removal and

destruction of SRMs will differ among countries,

depending on the level of TSE risk.48

The legislative process required to implement this

regulation is expected to take between 18 months and 2

years. In the absence of an agreed alternative approach,

the EU Agriculture Council postponed implementation

of the SRM ban from January 1, 1999, until December

31, 1999.

Data Privacy

On October 25, 1998, a new EU directive on the

protection of personal data49 entered into effect. Such

data can be collected by companies from a broad

variety of activities, such as telephone calls, credit card

transactions, and magazine subscriptions. The directive

ensures “both a high level of protection for the privacy

of individuals in all member states and the free

45 “Animal and Public Health: Commission Tables Two

New Proposals on SRMs and TSEs,” European Report, Nov.

21, 1998, p. IV–2.

46 USTR, 1998 National Trade Estimate Report on

Foreign Trade Barriers, p. 104.

47 TSE is a broader veterinary rubric than BSE and can

include sheep, goats, etc., and in addition to cattle.

48 European Commission Delegation, Office of Press

and Public Affairs, “European Commission Approves

Measures on BSE and TSE,” European Union News, Nov.

18, 1998; and U.S. Department of State telegram, “EU TSE

and BSE Proposed Legislation,” message reference No.

7070, prepared by U.S. Mission to the EU, Brussels, Nov.

19, 1998.

49 Directive 95/46/EC, OJ L 281, Nov. 23, 1995.

movement of personal data within the EU.”50 It

permits data transfers only to non–EU countries that

are judged to provide an adequate level of protection.

U.S. and EU officials have been meeting regularly to

work out a plan that would ensure that the United

States, which prefers company–based self–regulation

on data privacy issues, provides effective protection.

Details concerning the rights of individuals to access

personal data also remain at issue. Both sides hope to

resolve the dispute by June 1999. In the meantime,

while negotiations continue, the United States remains

concerned that data flows to the United States could be

interrupted.

 Canada

On January 1, 1998, one of the goals of the

U.S.–Canada Free Trade Agreement—duty–free status

for goods originating in the United States and

Canada—was accomplished.51 Given the volume of

trade between the two countries, a free trade agreement

will not resolve all bilateral trade difficulties, and a

certain number of issues will inevitably receive

substantial attention and be considered significant.

Among such issues in 1998 were the continuing

dispute involving Canadian magazines, previously

adjudicated through the dispute settlement mechanism

of the WTO, and the successful completion of

negotiations toward a bilateral agricultural agreement.

Agriculture has been an area of unfinished business,

not only with respect to the NAFTA, but also with

respect to the Uruguay Round Agreements of the

WTO.

Magazines

Background

The issue of split–run magazines (i.e., U.S.

publications with a Canadian version, printed in the

United States for distribution and sale in Canada, e.g.,

50 European Commission Delegation, Office of Press

and Public Affairs, “EU Directive on Personal Data

Protection Enters Into Effect,” European Union News, 

Oct. 23, 1998.

51 Duty–free status exists for most bilaterally traded

goods, except for certain agricultural goods. The

U.S.–Canada Free Trade Agreement (CFTA) was signed in

1988 and allowed for successive duty reductions over a

10–year period. It entered into force in January 1989.

January 1, 1994, marked the entry into force of the North

American Free Trade Agreement (NAFTA). The timetable

for duty reductions and most of the terms of the CFTA were

incorporated into the NAFTA.
58

Sports Illustrated Canada)52 has been of concern to

Canadian officials for some time. Such publications

have been banned at the border for the past 30 years.

However, a new age of technology now allows this

approach to be hurdled electronically. Consequently, in

December 1995, in order to discourage further

split–run publications in Canada and justified as

protecting cultural interests, Canada imposed a tax of

80 percent on the advertising revenue of these separate

Canadian editions. The United States argued that the

action was discriminatory and contrary to WTO rules.

The United States filed a complaint to the WTO DBS

on March 11, 1996, which issued its final report on

March 14, 1997.

While the U.S. complaint outlined four distinct

measures that Canada used to discriminate against

foreign magazines, the Panel Report upheld only one.

After Canada appealed the Panel Report, the WTO

Appellate Body upheld the fourth violation, a

discriminatory postal subsidy program to aid

Canadian–produced magazines.53 On August 29,

1997, Canada pledged to abide by the WTO decision.

It had approximately 15 months to come into

compliance, the deadline being October 30, 1998.54

1998 Developments

In March 1998, six months into the

WTO–established period of time for compliance,

Canada submitted its first status report on the

implementation of the modified Appellate Body

Report. While the report contained a description of

Canada’s domestic progress, information on the

procedures that it was pursuing in order to conform to

the panel and appellate reports was not included.

Specifically, the report lacked information on the steps

that Canada was taking to reform the postal rates and

contained no information on the substance of the

changes that Canada planned to make with respect to

the three other measures at issue. There was no

52 “Split–run magazines are periodicals sold both in

Canada and abroad, in which the Canadian editions contain

advertisements directed at a Canadian audience.” USTR,

“United States Prevails in WTO Case Challenging Canada’s

Measures Restricting Magazine Exports,” press release

97–22, Mar. 14, 1997.

53 USTR, “USTR Criticizes Proposed Canadian Action

to Continue Restrictions on Market Access for Magazines,”

press release 98–91, Oct. 9, 1998.

54 For an–in–depth description of previous events of the

Canadian case of magazines, see USITC, The Year in Trade:

OTAP, 49th report, USITC publication 3103, May 1998, 

pp. 92–93.

indication that Canada had drafted or proposed any

legislative changes.55

On April 22, Canada provided the WTO DSB with

its second report. In a separate statement, Canada

assured the DSB that progress was being made and that

changes to the excise tax law and the postal subsidy

code, as well as regulations governing imports of

split–run magazines, were being drafted. However, the

United States continued to seek more specific

information on the intermediate steps and timetables

for each step in the process.56

In June, Canada submitted its third progress report

to the DSB. This report was Canada’s shortest report to

date, stating only that implementation was under

consideration at the highest levels of the Canadian

Government. Canada also indicated in the report that it

planned to be in compliance by the October 30

deadline for implementation. Still, Canada did not

submit an outline of the changes that it was considering

in the reformation of the “GATT–inconsistent

regime.”57

On July 29, 1998, Canadian officials announced

detailed actions that would bring their policy on

periodicals into conformity with the WTO ruling.

Specifically, Canada would (1) remove the existing

customs tariff prohibiting the importation of

“split–run” magazines, (2) suspend its 1995 special

excise tax on split–run magazines run in Canada, (3)

modify its postal rates and subsidies for magazines by

making payments directly to magazine publishers, and

(4) harmonize the commercial postal rate for domestic

and foreign publications. At the same time, Canada

announced that it would remove the measures against

split–run magazines and replace these measures with

new legislation. The new legislation, to be introduced

in late September 1998, would prohibit foreign

magazine publishers from selling advertising directed

at the Canadian market.58 This privilege was to be

reserved for Canadian magazine publishers. Canada

55 U.S. Department of State telegram, “WTO Dispute

Settlement Body Meeting 25 March 1998: Instructions,”

message reference No. 53159, prepared by Secretary of

State, Washington, DC, Mar. 25, 1998. 56 U.S. Department of State telegram, “WTO

Dispute Settlement Body Meeting 22 April 1998,”

message reference No. 2877, prepared by U.S.

Mission, Geneva, Apr. 29, 1998.

57 U.S. Department of State telegram, “WTO Dispute

Settlement Body Meeting 22 June 1998: Instructions for

U.S. Delegation,” message reference No. 111949, prepared

by Secretary of State, Washington, DC, June 20, 1998. 58 Government of Canada news release, “New

Advertising Services Measure to Promote Canadian

Culture,” found at Internet address

http://www.pch.gc.ca/wn–qdn/culture/english/htm,

dated July 29, 1998, retrieved Jan. 6, 1998.
59

maintained that its new legislation is consistent with

the antidiscrimination provisions of the GATS rather

than the GATT, arguing that advertising is a service

rather than a good.59 USTR Ambassador Charlene

Barshefsky expressed the U.S. disappointment in the

Canadian action, stating, “Regrettably, the approach

outlined by the Canadian government appears simply

to represent a new prohibition against U.S. companies’

ability to do business in Canada.” USTR Barshefsky

went on to explain, “Such an approach would be every

bit as inconsistent with Canada’s international trade

obligations as its current discriminatory practices.”60

On October 8, 1998, Cultural Heritage Minister

Sheila Copps introduced this new legislation, bill

C–55, the Foreign Publishers Advertising Services Act,

in the House of Commons. The legislation states, “No

foreign publisher shall supply advertising services

directed at the Canadian market to a Canadian

advertiser or a person acting on their behalf.” Canadian

Cultural Heritage officials would investigate any

alleged infractions of the new law, the first step of

enforcement being a letter from the Minister to the

publisher. Unwillingness to abide by the law could lead

to a civil court injunction; a summary criminal

conviction (C$50,000 fine); or, in the case of an

“egregious and knowing offence,” a fine of C$250,000.

The new legislation does permit “grandfathered”

magazines to continue to operate at capacity similar to

that of the previous 12 months.61

While the United States opposed the legislation,

claiming that it perpetuates the previous law, bill C–55

went to “second reading” in the House of Commons on

October 22, 1998.62 U.S. Ambassador Hayes stated,

“The bill is openly protectionist and discriminatory ....

It leaves foreign–produced split–run periodicals

precisely where they have been for the past 30 years –

– shut out of the Canadian market.”63 Ambassador

Barshefsky concurred, asserting that the new

legislation appears to “represent a new prohibition

59 U.S. Department of State telegram, “WTO Dispute

Settlement Body Meeting 21 October 1998: Instructions,”

message reference No. 194965, prepared by Secretary of

State, Washington, DC, Oct. 21, 1998.

60 USTR, “Canada’s Initiative on Magazines Looks Like

Same Old Story,” press release 98–70, July 29, 1998.

61 U.S. Department of State telegram, “Magazines: New

Canadian Advertising Legislation,” message reference No.

3726, prepared by U.S. Embassy, Ottawa, Oct. 9, 1998.

62 U.S. Department of State telegram, “Magazines:

Update on New Canadian Legislation,” message reference

No. 3855, prepared by U.S. Embassy, Ottawa, Oct. 22, 1998.

63 USIS Washington File, “USTR’s Hayes on

Canada Magazine Dispute,” found at Internet address

http://www.usembassycanada.gov/canmag2.htm, dated

Oct. 21, 1998, retrieved Jan. 4, 1999.

against U.S. companies’ ability to do business in

Canada.”64 Ambassador Barshefsky announced on

October 30 that the United States will not allow

Canada to re–create “exclusionary and anticompetitive

policies” and will retaliate by denying trade benefits to

Canada.

In early November, the House of Commons

Standing Committee on Canadian Cultural Heritage

finished hearing testimonies from witnesses on the

subject of bill C–55. Advertisers’ representatives

presented the House of Commons with their concerns,

the consistency of the legislation in respect to the WTO

and Canadian constitutional freedoms. However, on

November 26, publishers’ representatives spoke on the

issue, dismissing these concerns. As such, bill C–55

was set to receive final consideration and passage on

November 30, 1998, and was projected to enter into

force in mid–December.65

On December 3, the U.S. Embassy in Ottawa

communicated to the USTR that “based on assurances

from knowledgeable, high–level Canadian officials,”

bill C–55 would not become law during the

then–current session of Parliament, which concluded

on December 11, 1998. Consequently, the bill’s entry

was delayed. The earliest the bill would be able to

enter into force would be when Parliament reconvened

in February 1999.66,67

Bilateral Progress:

U.S.–Canada Agriculture

Agreement

On September 3–4, the U.S. Under Secretary of

Agriculture, August Schumacher, the U.S. Ambassador

to Canada, Gordon D. Giffin, and other U.S. officials

met with Canadian representatives from the

Department of Foreign Affairs and International Trade

(DFAIT), and the Canadian Alliance of Agrifood

Exporters. The purpose of the meeting was to discuss

the future of U.S.–Canadian agricultural trade.

Shumacher outlined three main themes, each important

64 Ibid.

65 U.S. Department of State telegram, “Magazines:

Committee Hearings Conclude,” message reference No.

4265, prepared by U.S. Embassy, Ottawa, Nov. 27, 1998.

66 U.S. Department of State telegram, “Magazine Bill

Will Not Pass in 1998,” message reference No. 4334,

prepared by U.S. Embassy, Ottawa, Dec. 3, 1998.

67 In early 1999, the United States warned Canada of

possible retaliation. If Ottawa proceeds with protectionist

and discriminatory legislation, the United States threatened

to block products from four industries, steel, textiles and

apparel, wood products, and plastics, from U.S. market

access. Bill C–55 was passed by the Canadian House of

Commons on March 15, 1999.
60

to the U.S.–Canadian bilateral relationship: (1) the

need for improved management of the U.S.–Canada

bilateral relationship, given the lack of progress in

ongoing issues such as grain, livestock, and potatoes;

(2) the “perception” in the United States that there is an

inequity in the U.S.–Canada trading relationship,

which may have affected the ability of the current

administration to gain fast–track authority; (3) and

those areas of common interest, including issues being

considered in other multilateral forums such as the

World Trade Organization (WTO) and Asia Pacific

Economic Cooperation (APEC). However, after much

discussion, there was no resolution as to how to solve

these bilateral issues. Consequently, Under Secretary

Schumacher proposed a private meeting between

Canadian Agricultural Minister Vanclief and U.S.

Secretary of Agriculture Dan Glickman, upon

Vanclief’s visit to Washington on September 29.

Schumacher also suggested a second meeting that

would include members of Congress and opposition

representatives.68

On October 2, Secretary Glickman and USTR

Charlene Barshefsky announced that the United States

and Canada had agreed to “engage in intensive

discussion on a wide range of issues affecting farmers

and ranchers in both countries.” The discussions

would address the U.S. concerns regarding Canada’s

agricultural trade policies and practices; they were to

take place the following week.69

Subsequently on December 3, the United States

and Canada entered into a bilateral agreement that

would allow fair and open agricultural trade. USTR

Charlene Barshefsky explained that the impact of the

Asian financial crisis and natural disasters in certain

areas of the Northwest combined with long–standing

problems in the U.S.–Canada agricultural trade

relationship made it a “very tough year” for the U.S.

agriculture industry. While farmers experienced low

commodity prices, for some the lowest in 40 years,

Canadian market restrictions, regulatory barriers, and

lack of transparency on state trading compounded

problems for American agriculture producers. As such,

“tension” along the U.S. northern border amplified as

American farmers and ranchers formed border

blockades against the importation of Canadian wheat.

The agreement, she noted, provides an “initial set of

measures” to reduce this tension and to Canadian

68 U.S. Department of State telegram, “U.S.–Canada

September 3–4 Agricultural Bilaterals,” message reference

No. 2222, prepared by U.S. Embassy, Ottawa, Sept. 9, 1998.

69 USDA, “Agriculture Secretary Dan Glickman and

U.S. Trade Representative Charlene Barshefsky on Efforts to

Resolve U.S.–Canada Border Dispute,” press release No.

403–98, Oct. 2, 1998.

markets to U.S. farm and ranch products. The

agreement is a “first step” upon which future

agricultural standards will be built.70

While the United States and Canada benefit from a

bilateral Free Trade Agreement and NAFTA, neither of

these agreements discuss free trade in agriculture. The

Canadian DFAIT estimated that in 1997, each

Canadian consumed $C216 worth of food imported

from the United States, while each American

consumed US$31 worth of food imported from

Canada. Barshefsky asserted that this agreement was a

step toward rectifying the inconsistencies in regulation

and its implementation. The purpose of the agreement

is to open the Canadian market and create additional

market opportunities for American farmers and

ranchers. The new agreement will simplify exporting

and shipping to Canada. Barshefsky explained that the

agreement provides “some solution to some specific

problems faced by grain growers, the cattle industry,

our pork producers, and [to] broader issues, sanitary

and phytosanitary regulation, statistics and regulatory

policy.”

Under the December 3 agreement, Canada will

make some major revisions in the grain sector.71 First,

effective immediately, rather than having grain tested

in the United States and then again in Canada, an

alternative phytosanitary certification will define one

standard to prove the product is free of certain

phytosanitary problems. Second, as of January 1, 1999,

farmers from Montana and North Dakota became able

to ship grain directly to Canadian grain elevators

without having to comply with Canadian regulations.

Over the following 12 months, Canada will conduct a

review of the program “toward expanding its scope to

other states.”72 Third, Canada will begin to allow rail

shipments of grain from Montana, North Dakota, and

Minnesota. This revision will increase the capacity to

ship grains to the U.S. West Coast and, as rail options

increase, allows more competitive rail rates. After a

six–month efficiency review, Canada may extend this

program to additional states “meeting the criteria.”73

Furthermore, the agricultural agreement increases

communication between the United States and Canada,

providing export sales forecasts and quarterly

consultations on export grain levels. The dissemination

70 “U.S. Trade Representative Charlene Barshefsky and

Secretary of Agriculture Dan Glickman press conference.”

Washington, DC, Dec. 4, 1998, LEGI–SLATE Federal

Information Systems Corp., No. 983380209.

71 The term “grain” includes all cereals, wheat, barley,

oats, and rye.

72 USTR, “Fact Sheet: U.S.–Canada Agricultural

Market Opening Measures,” Dec. 4, 1998.

73 Ibid.
61

of basic facts characterizing U.S.–Canadian bilateral

trade should enable the United States to monitor more

efficiently quantity, price, variety, and quality

descriptions of imports of Canadian grain. The United

States will then be able to plan for increases in

shipments. Ambassador Barshefsky explained that

greater communication preserves U.S. “trade law

rights, whether safeguards, countervailing duties, or

antidumping rights.”74

Similar changes will be applied to the exporting of

livestock from the United States to Canada. Under the

new agreement, Canada agreed to eliminate and ease

regulations impeding the import of U.S. hogs and

feeder cattle. There will be no 30–day quarantine of

U.S. live hogs for 33 states, and 26 states will be

allowed to ship feeder cattle directly to Canada under

new regulations. USTR explained that the current

system employed by Canada “curtailed export

opportunities” and imposed “a heavy additional cost

burden” on U.S. farmers and ranchers. Canada will

“completely revise” its animal health regulations and

apply the new regulation to all livestock within 30

months. As with grain, Canada will allow greater

transparency on cattle trade data and greater

cooperation in the harmonization of pesticide and

animal drug registration.75

While these major changes are permanent steps

toward a more open trading relationship, the United

States and Canada continue consultations on other

issues, such as seed certification and potato trade. The

United States and Canada also agreed to work together

to harmonize the imbalance in access to veterinary

drugs and certain pest control products. In regard to

pesticide inspections, the United States and Canada are

considered to be equally “stringent”; however, they

agreed to work to simplify this process by sharing

scientific data, sampling plans, and results.76

Though the majority of the bilateral effort seems to

require changes by Canada, the United States also

agreed to take action to ease U.S.–Canada bilateral

agricultural trade. First, the United States will work to

address the inconsistencies between state and Federal

regulations in regard to brucellosis vaccination and

tuberculosis requirements. Second, the U.S.

Department of Agriculture (USDA) agreed to amend

74 “U.S. Trade representative Charlene Barshefsky and

Secretary of Agriculture Dan Glickman press conference.”

Washington, DC, Dec. 4, 1998, LEGI–SLATE Federal

Information Systems Corp., No. 983380209.

75 Ibid.

76 USTR, “USTR, USDA Announce Series of New

Measures to Open Canadian Farm Markets,” press release

98–107, Dec. 4, 1998.

sanitary and phytosanitary regulations dealing with

equine semen import permits, inspection of live horses,

and nursery stock. Third, the United States will design

a mechanism that would aid Canada in the

management of Canadian exports of sugar products

under the U.S. tariff–rate quota.77

In addition to individual country efforts, the United

States and Canada will maintain joint cooperation on

other issues such as agricultural biotechnology and

other multilateral forums such as the WTO and

APEC.78 Secretary Glickman and Minister Vanclief

will discuss the next series of issues to be added to the

new agriculture agreement.79

While Ambassador Barshefsky asserted that “our

hope is that this agreement and others that follow will

reduce the pressure on the border,”80 it is not merely a

matter of reducing frustration. Secretary Glickman

noted that “there will be some economic impact.”81 He

explained that if market access does improve under the

agreement, the initial economic impact may be more

regional or crop–specific in nature.

Japan

The United States and Japan have more bilateral

agreements than any other two nations.82 In 1998,

bilateral agreements in autos, insurance, and

deregulation received the most attention by negotiators.

The United States continued to monitor other bilateral

agreements, such as those covering semiconductors,

computers, flat glass, legal services, telecommunications, and harbor services. In 1998, the business

community called for further improvements by Japan

in five key areas: increased market access,

deregulation, an improved environment for foreign

direct investment, better implementation of bilateral

trade agreements, and more efficient corporate

governance.

Autos

Passenger autos produced in the United States and

registered in Japan totaled 53,462 units in 1998, a

decline of 56 percent from 1997 levels. Import

penetration of foreign passenger vehicles into the

Japanese market decreased from 7.6 percent in 1997 to

77 USTR, “Fact Sheet: U.S.–Canada Agricultural

Market Opening Measures,” Dec. 4, 1998.

78 Ibid.

79 “U.S. Trade representative Charlene Barshefsky and

Secretary of Agriculture Dan Glickman press conference.”

Washington, DC, Dec. 4, 1998, LEGI–SLATE Federal

Information Systems Corp., No. 983380209.

80 Ibid.

81 Ibid.
62

6.5 percent in 1998.83 Japanese purchases of U.S.

original–equipment auto parts declined nearly 4

percent.84 Throughout 1998, the United States

continued to monitor progress under the 1995

U.S.–Japan automotive agreement.85 The agreement

was intended to address some of the difficulties

experienced by U.S. firms in accessing Japan’s vehicle

distribution system, eliminate regulations in the

automobile parts aftermarket in Japan, and improve

opportunities for U.S. original equipment (OE) parts

suppliers in Japan and with Japanese transplants in the

United States. The agreement included 17 objective

criteria to evaluate progress in these three areas.86

On August 12, 1998, the Interagency Enforcement

Team87 released its fifth semiannual monitoring report

on the U.S.–Japan automotive agreement. The report

noted that there had been an overall contraction in the

Japanese automotive market, which included a

declining foreign share of the market. With regard to

adding new, high–quality dealerships in Japan, one of

the aims of the 1995 agreement, the report noted that

187 new franchise agreements had been concluded

since the agreement. This figure was less than the goal

of 200 dealerships by the end of 1996, but the

recession in Japan had led U.S. auto producers to

change their marketing plans and back away from the

original goal.88 Nonetheless, the Administration, in the

report and in public statements, continued to urge the

Japanese government to eliminate restrictive business

practices in the automotive sector.89 The report called

on Japan to deregulate areas affecting aftermarket

82 For a listing and information on bilateral agreements,

see http://www.mac.doc.gov.

83 Japan Manufacturers Association, Japan Auto Trends, Mar. 1999, p. 7.

84 “U.S. Wants New Japanese Auto Buying Plans,”

Washington Trade Daily, Nov. 2, 1998.

85 “Measures by the Government of Japan and the

Government of the United States of America Regarding

Autos and Parts,” Aug. 23, 1995. For additional background

information regarding the agreement, see USITC, The Year

in Trade: OTAP 1995, USITC publication 2971, Aug. 1996,

pp. 53–54; and 68 and USITC, The Year in Trade: OTAP

1996, USITC publication 3024, Apr. 1997, pp. 96–97.

86 “Measures by the Government of Japan and the

Government of the United States of America Regarding

Autos and Parts,” Aug. 23, 1995.

87 The Interagency Enforcement Team, established

under the agreement, is cochaired by the U.S. Department of

Commerce and the Office of the U.S. Trade Representative.

88 “Key Measure of U.S.–Japan Auto Deal No Longer

Relevant, Official Says,” Inside U.S. Trade, Aug. 14, 1998.

89 USTR, “Administration Calls on Japan to Make

Progress Under Auto Agreement, Despite Recession,” press

release no. 98–78, Aug. 12, 1998; and U.S. Department of

Commerce and Office of the U.S. Trade Representative,

Report to President William Jefferson Clinton of the

Interagency Enforcement Team Regarding the U.S.–Japan

Agreement on Autos and Auto Parts, Aug. 12, 1998, p. 1.

sales, including vehicle inspections, the so–called

critical parts list, mechanic certification, and other

regulation of government–certified garages. Under the

agreement, smaller independent garages were to be

established to create opportunities for foreign parts

producers. Since February 1997, 347 specialized

certified garages and 125 special designated garages

have been created.90

On October 29, the United States and Japan held

two days of annual consultations under the 1995

agreement. During the talks, the United States repeated

its request for Japan to remove brake systems and other

auto parts from its so–called critical parts list.91 The

United States also asked Japan to expand the number

of “specialized certified garages,” which the United

States believes would increase the demand for

imported parts.92 With regard to mechanics, the United

States asked Japan to certify mechanics to work on

individual systems, rather than requiring them to pass

tests on all critical parts systems. In addition, the

United States raised other issues such as streamlining

motor vehicle inspection measures, revising new

vehicle registration and repair regulations, and

improving transparency in rule making. Japanese

officials reportedly indicated that Japan has already

complied fully with the terms of the agreement.93

Deregulation

Despite a trend in Japan to deregulate its market,

thousands of statutes and regulations continue to

control many sectors of the economy.94 During 1998,

the United States continued to urge Japan to make

90 U.S. Department of Commerce and Office of the U.S.

Trade Representative, Report to President William Jefferson

Clinton of the Interagency Enforcement Team Regarding the

U.S.–Japan Agreement on Autos and Auto Parts, Aug. 12,

1998, pp. 1–3. In February 1997, Japan’s Ministry of

Transport established two new categories of garages:

specialized certified garages and special designated garages.

Specialized certified garages are smaller than regular garages

and do not have the ability to repair all vehicle components.

The special designated garages do not have to perform

inspections on–site.

91 Japan Economic Institute, “Automotive Trade Pact

Talks,” Nov. 6, 1998, p. 7.

92 Japan’s disassembly repair regulations require repair

work on seven major component systems of an automobile,

including brakes, to be done at dealerships or other Ministry

of Transport–certified garages. These garages tend to use

almost exclusively Japanese parts because they are owned

by, or are closely affiliated with, Japanese auto

manufacturers.

93 U.S. Department of State telegram, “U.S.–Japan Auto

Consultations,” message reference no. 28719, prepared by

U.S. Embassy, Tokyo, Nov. 4, 1998.

94 American Chamber of Commerce in Japan, 1997

United States–Japan Trade White Paper, 1997, p. 14.
63

ambitious deregulatory reforms aimed at achieving

sustained demand–led growth in Japan.95

On March 31, Japan announced a list of 624 items

that it planned to deregulate over the next three years.

The new program covered a wide range of sectoral and

structural issues such as telecommunications, housing,

financial services, medical devices and pharmaceuticals, competition policy, deregulation, legal

services, and regulatory transparency.96 All of the

issues had been the subject of extensive negotiations

between the United States and Japan under the

Enhanced Initiative on Deregulation and Competition

Policy (Enhanced Initiative) announced in 1997, and at

least half of the measures were carryovers from a

previous reform package.97 USTR Barshefsky

responded to the announcement by saying that while

the package represented some progress, it “falls short

of expectations” and “is too vague on key issues ...”. 98

During bilateral talks two weeks later, the United

States presented a list of 20 items in the package that it

wanted deregulated on a priority basis. The list

included such items as transparency of rules regarding

the opening of large–scale retail stores, measures to

promote three–story housing, and a review of rate

charges for hook–ups for telecommunications

carriers.99

On May 15, 1998, at the G–8 summit in

Birmingham, England, the United States and Japan

announced measures in the area of deregulation

covering trade in telecommunications, housing,

medical devices and pharmaceuticals, financial

services, and distribution.100 In addition to these areas,

95 The White House, “U.S.–Japan Initiative Delivers

Progress on Deregulation,” press release, Birmingham,

England, May 15, 1998.

96 USTR, “Statement of U.S. Trade Representative

Charlene Barshefsky Concerning Japan’s New Three–Year

Regulation Program,” press release No. 98–39, Apr. 2, 1998.

97 The Enhanced Initiative was agreed to by President

Clinton and Prime Minister Hashimoto in June 1997 at the

Denver G–8 Summit which established a bilateral forum to

address deregulation and market access issues in Japan. This

initiative focused initially on four principal sectoral areas:

telecommunications, housing, financial services, and

medical devices and pharmaceuticals. In addition, the

initiative addressed structural issues in the areas of

competition policy, distribution, transparency, and other

government practices.

98 USTR, “Statement of U.S. Trade Representative

Charlene Barshefsky Concerning Japan’s New Three–Year

Deregulation Program,” press release No. 98–39, Apr. 2,

1998.

99 Foreign Broadcast Information Service, Daily Report, April 16, 1998.

100 Transcript of press conference with Deputy USTR

Fisher on U.S.–Japan Deregulation Accord, found at Internet

address http://www.usia.gov/topical/econ/birming/98summit/

fisher15, retrieved May 21, 1998.

it was agreed that future negotiations would cover the

energy sector, where there are burdensome regulations

regarding inspection and testing in the replacement of

equipment; limitations on the activities of energy

service providers; and the use of very narrow technical

standards, rather than performance–based standards.101

The measures were included as part of a status report

on the Enhanced Initiative. USTR Charlene Barshefsky

indicated that the measures were “an important step

that must be followed by continuous efforts in

deregulation and market–opening reforms.”102

On October 7, 1998, the U.S. Government

submitted 270 proposals for deregulation in Japan,

including proposals in the telecommunications,

housing, financial services, medical devices and

pharmaceuticals, energy, and automotive sectors. In

addition, the proposals covered topics regarding

distribution, competition policy, and transparency. The

proposals were intended to build upon those announced

in May. It was expected that the U.S. submission

would form the basis for an agreement between the

United States and Japan at the next G–8 Summit in

June 1999.103 Various experts meetings were held in

each of the sectors, following the U.S. submission.

A vice–ministerial meeting was held on November

6 between Deputy U.S. Trade Representative Richard

Fisher and Deputy Foreign Minister Koichi Haraguchi.

At the meeting, the United States reportedly focused on

ensuring that Japan adheres to deregulation measures

agreed to previously and on gaining new commitments

in the areas of telecommunications, housing, medical

devices, pharmaceuticals, legal services, competition

policy, transparency, and distribution.104

Insurance

Japanese insurance companies control 98 percent

of the life business and 97 percent of the nonlife

business in the primary sectors of the insurance market.

In the so–called third sector,105 they control 84 percent

of the nonlife business, but only 32 percent of the life

business.106 During 1998, several issues arose with

101 Ibid.

102 The White House, “U.S.–Japan Initiative Delivers

Progress on Deregulation,” press release, Birmingham,

England, May 15, 1998. 103 USTR, “U.S. Submits Wide–Ranging Deregulation

Proposals to Japan,” press release No. 98–90, Oct. 7, 1998.

104 “Fisher Outlines Key Issues of Contention in

U.S.–Japan Dereg Talks,” Inside U.S. Trade, found at

http://www.insidetrade.com/sec=cgi/as_web.exe?SEC_curre

nt+D+46021, Nov. 18, 1998.

105 The so–called third sector includes insurance against

cancer, personal accident insurance, and hospitalization

insurance.

106 USTR, “United States–Japan Bilateral Insurance

Agreement,” press release No. 98–66, July 1, 1998.
64

regard to enforcement of two previous bilateral

agreements on insurance. Under the 1994 and 1996

Insurance Agreements, Japan had agreed not to allow

liberalization of the smaller third sector of the market,

where non–Japanese insurance companies have been

successful in gaining some market share, “as long as a

substantial portion of the life and nonlife areas is not

deregulated.”107 Specifically, Japan had agreed not to

open the third sector until 30 months after the two

primary sectors were deregulated. Under the

agreements, the two governments were to determine by

July 1, 1998, whether Japan had fully implemented

specific deregulatory measures intended to open

Japan’s primary insurance sectors to effective

competition. At the end of June, following contentious

bilateral talks, Japan set July 1 as the date for the

beginning of the 30–month countdown toward

liberalization of the third sector, saying that it had met

all of the deregulation requirements of the agreements.

On July 1, 1998, the USTR announced that she did not

support Japan’s decision to begin to open the third

sector of Japan’s insurance market within 30

months.108 The USTR indicated that Japan had not

fully implemented all of the specific deregulation

actions under the Insurance Agreements in the primary

sector, and therefore she opposed starting the process

to open up the third sector. Specifically, Japan had not

fully implemented its obligations regarding rating–

organization reform. In addition, Japan had not

implemented its obligations regarding processing new

product and rate applications. The USTR also noted

that in the primary sector, she was concerned with

Japan’s licensing of a cancer rider to Tokyo Anshin,

the life subsidiary of a large Japanese insurance

company, Tokyo Fire and Marine. According to the

USTR, the rider was intended to circumvent provisions

of the 1996 Insurance Agreement regarding the third

sector.109

On August 6, House Commerce Committee

Chairman Thomas Bliley began an inquiry into the

methods that U.S. negotiators had used in reaching the

1996 bilateral insurance agreement. Specifically, the

107 For background information on the 1994 and 1996

agreements see, USITC, The Year in Trade: OTAP 1994,

USITC pub. 2894, pp. 81 and 82 and USITC, The Year in

Trade: OTAP 1996, USITC publication 3024, pp. 97 and 98,

respectively.

108 Under the bilateral Insurance Agreement of 1996,

the United States and Japan were to determine by July 1,

1998, whether Japan had fully implemented specific

deregulatory measures designed to open Japan’s primary

insurance sectors to effective competition.

109 USTR, “United States–Japan Bilateral Insurance

Agreement,” press release no. 98–61, July 1, 1998.

Congressman raised questions about a “private minute”

that was reached at the time of the 1996 agreement, but

appeared to contradict the principles of the agreement

relating to giving Japanese companies access to the

third sector of the market.110 Under the private minute,

a Japanese insurance company (Yasuda Fire and

Marine) was given permission to acquire a majority

stake in a firm (INA–Himawari) that is now a

subsidiary of Cigna, but operates in the third sector of

the market.111 The private minute appeared to allow

INA to operate in the third sector before the

preconditions of the 1994 and 1996 agreements were

met, i.e., that no Japanese firms can sell in the third

sector until 30 months after the primary sectors were

deregulated. U.S. firms alleged that Yasuda was

violating the agreement through its association with

INA. In his letter, Bliley requested all records relating

to the private minute and a list of all officials involved

in the effort.112

At the same time, members of the House Ways and

Means Committee led by Representative Michael

Collins and the Chairman of the House Appropriations

Subcommittee on Foreign Operations, Sonny Callahan,

threatened to introduce legislation that would reduce

the USTR’s funding by 25 percent, or $6 million, in

1999 unless the USTR reopened an investigation into

whether Japan had violated the U.S.–Japan insurance

agreement.113 USTR Barshefsky agreed to reexamine

the issues, despite a previous finding by an interagency

group that there had been no violations of the

agreement.114 On August 14, USTR Barshefsky

reported the results of an interagency task force that

concluded that the activities of Yasuda and INA in the

third sector of Japan’s insurance market did not violate

the Insurance Agreement. Barshefsky noted that the

Administration would continue to monitor closely

110 Letter from Congressman Tom Bliley to USTR

Charlene Barshefsky, Aug. 6, 1998, found at Internet address

http://www.insidetrade.com/sec–cgi/as_web.exe?SEC_curre

nt+D+82973, retrieved Aug. 11, 1998.

111 “Text: Alleged U.S.–Japan ‘Private Minute’,” found

at Internet address: http://www.insidetrade.com/sec–sgi/as_

web.exe?SEC_current+D+39298, retrieved Aug. 11, 1998.

112 Letter from Congressman Tom Bliley to USTR

Charlene Barshefsky, Aug. 6, 1998, found at Internet address

http://www.insidetrade.com/sec–cgi/as_web.exe?SEC_curre

nt+D+82973, retrieved Aug. 11, 1998.

113 BNA, International Trade Daily, “Upset at Japanese

Insurance Barriers, Rep. Callahan Threatens USTR

Funding,” Aug. 3, 1998.

114 Letter from USTR Charlene Barshefsky to

Congressman Hal Rogers, Aug. 4, 1998 found at Internet

address http://www.insidetrade.com/sec–cgi/as_web.exe?SE

C_current +D+82973, retrieved Aug. 11, 1998.
65

Japan’s compliance with the Insurance Agreement and

to insist that it meet all of its commitments with respect

to deregulation of the primary sector.115

Mexico

In 1998, the strong recovery of the Mexican

economy from the 1994–95 “peso crisis” began to

taper off.116 The Central Bank’s tight monetary policy

and resulting high interest rates, the financial crisis of

Mexico’s trading partners in East Asia and Latin

America, and low international petroleum prices

contributed to this slowdown.117

During the year, the United States pressed Mexico

to abide by its international obligations in two areas in

particular: enforcing IPR legislation118 and opening its

telecommunications market to competition. While not

identified in 1998 on a special “watch list” maintained

by the office of the USTR as being among those U.S.

trading partners that “[d]eny adequate and effective

protection of intellectual property,” Mexico was cited

in the “Other Observations” category for its unresolved

piracy and counterfeiting problems which reflected

inadequate enforcement of pertinent legislation.119

With regard to telecommunications, U.S. officials

criticized Mexico for anticompetitive practices in

favor of TELMEX, Mexico’s former state monopoly in

communications. On November 25, 1998, USTR

Charlene Barshefsky noted the failure of the

Government of Mexico “to permit more

telecommunications competition and questioned

Mexico’s adherence to its WTO commitments in this

area.”120

Trade disputes between the United States and

Mexico have arisen in large measure with regard to

agricultural products, especially those whose trade is

moving in both directions: fruits and vegetables, live

animals or animal products, and sugar and other

sweeteners. Some of these issues emerged years ago,

115 Letter from USTR Charlene Barshefsky to

Congressman Mac Collins, Aug. 14, 1998, found at Internet

address http://www.insidetrade.com/sec–cgi/as_web.exe?SE

C_current+D+61175, retrieved Aug. 1998.

116 For a discussions of Mexico’s “peso crisis” in

1994/95, see USITC, The Year in Trade: OTAP 1994, USITC

publication 2894, July 1995, p. 85.

117 See “Mexico” in the “Introduction” of this report.

118 USITC, The Year in Trade: OTAP 1997, USITC

publication 3103, May 1998, pp. 66 and 111; and Chapter 3,

the “NAFTA” section, in this report.

119 USTR, “USTR Announces Results of Special 301

Annual Review,”press release 98–44, May 1, 1998.

120 USTR, “USTR Underscores Need for Progress in

Mexico’s Implementation of WTO Telecom Commitments”

press release 98–102, Nov. 25, 1998, p. 25.

focusing frequently on sanitary or phytosanitary

standards that are perceived by each country as

nontariff barriers to exports in the other country.

In 1998, Mexico expanded its import licensing

system to cover several products from Europe and Asia

because of concerns about dumping and

underinvoicing. However, goods originating in a

NAFTA country are exempt from these requirements.

U.S. exporters are still affected by certain new import

licensing rules that Mexico announced for food

products, calling for an “advance sanitary import

authorization prior to the product crossing the

border.”121

U.S. growers of winter produce, mostly in Florida

and California, have been concerned for years about

rising imports from Mexico of counter–seasonal fruits

and vegetables, including tomatoes, avocados, and

tropical and semitropical fruits. Some of these disputes,

notably U.S. antidumping proceedings concerning

Mexican tomatoes, were settled via compromises

involving price floors.122 Another recent high–profile

issue, a Mexican antidumping proceeding against U.S.

apples, was settled early in 1998,123 with an agreement

signed on March 20 that “[s]hould provide a

predictable setting for U.S. apples to once again enter

the Mexican market.”124

Mexican Sugar and U.S.

Sweeteners

Mexican access to the U.S. sugar market and U.S.

access to the Mexican market for high–fructose corn

syrup (HFCS)125 continued to be major issues in

1998.126 These issues were discussed bilaterally, but

with respect to HFCS, Mexico also requested in March

formal consultations with the United States under

121 U.S. Department of State telegram, “1998 Trade Act

Report: Mexico,” message reference No. 11386, prepared by

U.S. Embassy, Mexico City, Nov. 25, 1998.

122 See, for example, “Tomatoes” in USITC, The Year in

Trade: OTAP 1995, USITC publication 2971, Aug. 1996,

p. 56; and The Year–In Trade: OTAP 1996, USITC

publication 3024, Apr. 1997, pp. 104–105.

123 USITC, The Year in Trade: OTAP 1997, USITC

publication 3103, May 1998. pp. 113–14.

124 USTR, “Agreement between the U.S. Apple Industry

and the Government of Mexico,” press release 98–33, Mar.

20, 1998. Under the terms of this agreement, among other

provisions, a specified reference price will replace the

antidumping duties.

125 HFCS is an alternative sweetener to sugar, used in

most soft drinks.

126 USITC, The Year in Trade: OTAP 1997, USITC

publication 3103, May 1998, p. 111.
66

Chapter 20 of the North American Free Trade

Agreement (NAFTA), and in May the United States

invoked World Trade Organization (WTO)

proceedings.

Sugar

In the 1990s, sugar mills in Mexico raised their

output much faster than expected, as a result of

privatization and technological modernization of the

industry.127 Growing sugar inventories and difficulties

in selling to markets that suffer from financial

hardships, such as Russia, pushed Mexico’s sugar

industry into a crisis.128 The Mexican press reported

that—

Mexican sugar mills are faced with an

extremely grim situation, exactly 10 years after

their privatization. The industry is

undercapitalized, thanks to falling international

sugar prices (from 13 cents per pound to 8 cents

per pound), enormous debt (nearly 15 billion

pesos) and the excess supply in Mexico of about

1 million tons.129

NAFTA partners’ reciprocal access to one another’s

sugar markets is established in Section A of Annex

703.2 of NAFTA, and in a 1993 “understanding,”

generally referred to as “the side letter” between

Michael A. Kantor, then USTR, and Jaime Serra

Puche, then Mexico’s Secretary of Commerce and

Industrial Development (SECOFI).130 Both the United

States and Mexico have protected sugar markets, with

prices well above the world market price in both

countries.

The United States currently imports some one–fifth

of the sugar that it consumes from some 40 countries,

and it applies complex tariff–rate quotas (TRQs) to

these imports. In accordance with NAFTA provisions,

the United States allocated a share of its FY 1999

in–quota quantity to Mexico to cover imports up to

127 U.S. Department of State telegram, “1997 Trade Act

Report: Mexico,” message reference No. 10605, prepared

by U.S. Embassy, Mexico City, Oct. 31, 1997.

128 See, for example, Alva Senzek, “Sugar–Fructose

Dispute, A Tricky Business,” El Financiero International

Edition, Aug. 31, 1998, through Sep. 6, 1998, p. 3.

129 Erminio Robollo Pinal, “Sugar Companies Need

Bailout,” El Financiero International Edition, Oct. 12–18,

1998, p. 3.

130 Letter of USTR Michael A. Kantor Nov. 3, 1993, to

Jaime Serra Puche, Mexico’s Secretary of Commerce and

Industrial Development, reprinted in 103d Congress, 1st

Session, House Document 103–160, p. 98. See also USITC,

The Year in Trade: OTAP 1997, USITC publication 3103,

May 1998, p. 111.

25,000 metric tons for raw and refined sugar

combined.131 In comparison, a quota allocation of

190,657 metric tons of raw sugar is specified for the

Dominican Republic, and 157,076 metric tons for

Brazil.

U.S. sugar quotas are based on historical imports.

Most imported sugar traditionally originated in the

Caribbean and South American countries, which

explains the much smaller quota currently allocated to

Mexico than to Brazil or the Dominican Republic.

Nonetheless, under NAFTA, Mexico’s quota share will

be raised tenfold to 250,000 metric tons in the year

2001, and it will stay at this level each year thereafter

through 2007. By 2008, the United States will

altogether cease to apply any TRQ to sugar imports

from Mexico, while continuing a TRQ for global

imports. The NAFTA duty on over–quota Mexican

imports is being reduced annually, and imports will be

“free” on January 1, 2008, and thereafter.

In recent years, Mexico began to regard critically

the NAFTA “understanding” on U.S. sugar quotas

because of the crisis in its domestic sugar industry.132

Mexican officials expressed interest in accelerating the

NAFTA timetable to attain still greater access to the

U.S. market than the tenfold expansion of its present

quota share scheduled to begin in the year 2001. In

August 1998, Luis Fernandez de la Calle, head of

Mexico’s NAFTA office in Washington, DC, told the

15th Annual International Sweetener Symposium

sponsored by the American Sugar Alliance (ASA) that

Mexico does not regard the “side letter” to be valid and

that NAFTA provisions governing U.S.–Mexican sugar

trade after the year 2000 should be renegotiated.133

U.S. officials, and representatives of U.S. sugar

interests attending the symposium, were skeptical

about reopening the sugar issue. Panelist Chuck

Conner, president of the Corn Refiners Association

(CRA), stated:

Unfortunately, the Mexican government has not

been satisfied with substantially greater access

to the U.S. sugar market. They expect the U.S.

131 USTR, “USTR Announces Allocation of the Raw

Cane Sugar and Sugar–Containing Products Tariff Rate

Quotas for 1998–99,” press release, 98–83, Sept. 16, 1998.

132 Letter of USTR Michael A. Kantor, Nov. 3, 1993, to

Jaime Serra Puche, Mexico’s Secretary of Commerce and

Industrial Development, reprinted in 103d Congress, 1st

Session, House Document 103–160, p. 98. See also USITC,

The Year in Trade: OTAP 1997, USITC publication 3103,

May 1998, p. 111.

133 “U.S. skeptical of Mexican Call for NAFTA Sugar

Changes,” Annual International Sweetener Symposium

sponsored by the American Sugar Alliance (ASA) in Sun

Valley, Idaho, Aug. 12, 1998, found at Internet address

http://www.sugaralliance.org/, retrieved on Oct. 28, 1998.
67

to throw out its GATT legal sugar program and

abandon all of our traditional suppliers of

sugar. This is not going to happen.134

High–Fructose Corn Syrup

In addition to seeking a larger share of the U.S.

sugar market, Mexico strives to boost its domestic

sugar consumption by limiting competition from

alternative sweeteners. In particular, Mexican sugar

producers became concerned that HFCS imported from

the United States, which is less expensive than sugar,

could replace domestically produced sugar in soft

drinks and in candy and confectionary.

The issue of possibly imposing compensatory

duties on HFCS imports surfaced in January 1997,

when the Mexican National Chamber of Sugar and

Alcohol Industries (Sugar Chamber), an association of

sugar producers in Mexico, filed a petition with

SECOFI, alleging sales at less than fair value of HFCS

imported from the United States.135 SECOFI

responded by initiating an antidumping investigation in

February 1997 and levying preliminary antidumping

duties on HFCS products of lower fructose

concentration in June. In January 1998, SECOFI made

its final determination that HFCS imports from the

United States had been sold at less than fair value and

that such imports were threatening the Mexican sugar

industry with material injury. Accordingly, SECOFI

imposed final antidumping duties ranging from $55.37

to $175.50 per metric ton on HFCS commercial

products HFCS 42 and HFCS 55.136

SECOFI also announced in January 1998 that it

was investigating possible evasion of duties on HFCS

imports. On September 8, SECOFI confirmed findings

of duty evasion, stating that a Mexican firm imported

an enriched HFCS mixture from the United States

(HFCS 90), then diluted such imports to produce

HFCS of lower fructose concentration (HFCS 55)

locally in order to avoid paying the compensatory duty

levied on the imports of the latter.137 According to

134 Ibid.

135 See also USITC, The Year in Trade: OTAP 1997,

USITC publication 3103, May 1998, p. 111.

136 Ibid.; and U.S. Department of Agriculture, Attache

Query Detail, Global Agriculture Information Network

(GAIN) Report, AGR Number MX#8005, Jan. 23, 1998,

found at Internet address http://www.fas.usda.gov, retrieved

on Oct. 29, 1998.

137 U.S. Department of State telegram, “Mexico Extends

Coverage of Compensatory Dumping Duties Imposed on

U.S. Exports of Enriched High Fructose Corn Syrup,”

message reference No. 09946, prepared by U.S. Embassy,

Mexico City, Oct. 7, 1998; and U.S. Department of

Agriculture, Attache Query Detail, Sep. 14, 1998, GAIN

SECOFI, as a result of this strategy, Mexican HFCS

production increased 118 percent in January through

April 1998 over a comparable 1997 period.138 U.S.

officials report that the prevention of such duty evasion

was the primary objective of the September 8, 1998

decree, which extended compensatory duties to all

HFCS imports.139

The U.S. industry has considered the HFCS

dumping charges without merit ever since they

surfaced in early 1997. From the U.S. industry’s

perspective, Mexican preoccupation with HFCS

imports masks an attempt to gain increased access for

Mexican sugar to the U.S. market.140 In February

1998, shortly after the imposition of final antidumping

duties in January, the Corn Refiners Association

(CRA) requested review proceedings under Chapter 19

of NAFTA.141 In May, USTR Charlene Barshevsky

announced that the United States was invoking WTO

dispute–settlement proceedings to challenge Mexico on

restraining HFCS imports. The USTR claimed that

“Mexico’s antidumping action does not pass muster

under WTO rules”142 and requested, in October, a

WTO panel to discuss the case.143 At the time of this

writing, the HFCS dispute–settlement case is pending

in both NAFTA and the WTO.

In addition, in May 1998, the USTR announced an

investigation initiated under section 301 of the Trade

Act of 1974 in response to a petition filed by the CRA

alleging that “[c]ertain practices of the Government of

Mexico [GOM] deny fair and equitable market

opportunities for U.S. exporters of HFCS.”144 The

137—Continued

Report #MX8104, found at Internet address

http://www.fas.usda.gov. on Jan. 12, 1999.

138 U.S. Department of State telegram, “Mexico

Imposes Compensatory Dumping Duties on U.S. Exports of

Enriched High Fructose Corn Syrup,” message reference No.

08849, prepared by U.S. Embassy, Mexico City, Sep. 8,

1998.

139 Ibid.; and U.S. Department of Agriculture, Attache

Query Detail, Sep. 14, 1998, GAIN report #MX8104, found

at Internet address http://www.fas.usda.gov on Jan. 12, 1999.

140 At public hearings held in 1997, U.S. producers of

HCFS, represented by the Corn Refiners Association (CRA),

argued that SECOFI’s action amounted to a rescue mission

for Mexico’s ailing sugar industry. See also USITC, The

Year in Trade: OTAP 1997, USITC publication 3103, 

May 1998, p. 111.

141 Chapter 19 of NAFTA covers dispute settlement

proceedings under the accord.

142 USTR, “USTR Pursues WTO Case against Mexico

on High Fructose Corn Syrup,” press release 98–50, May 8,

1998.

143 U.S. Department of State telegram, “WTO Dispute

Settlement Body Meeting,” message reference No. 194966,

U.S. Department of State, Washington, DC, Oct. 21, 1998.

144 USTR, “USTR Barshevsky Initiates Investigation of

Mexican Practices Affecting High Fructose Corn Syrup

(HFCS),” press release 98–50, May 18, 1998.
68

petition emphasized that “[the] GOM had encouraged

and supported an agreement between the Mexican

sugar and soft drink producers in August 1997 to limit

HFCS input in soft drinks.”145 Local sugar producers

reportedly agreed to sell their product at discounted

prices to local soft drink bottling companies, provided

these companies voluntarily maintained imports of

U.S.–made HFCS for the next 3 years at levels not

exceeding imports of the period May through July

1997. The agreement specified that the Mexican soft

drink industry’s rising demand for sweeteners was to

be met by sugar.146

Table 4–1 shows the volume of U.S. sales of HFCS

to Mexico from 1993 to 1998 in three HTS

classifications, that include HFCS 42, HFCS 55, and

HFCS90–the HFCS items that are subject to dumping

duties. Data indicate that exports to Mexico under HTS

170240 subheading (containing HFCS 42), for which

dumping duties had been in effect for the second half

of the year, declined significantly in 1997 and 1998.

Similarly, Mexico’s share of U.S. exports to all

countries declined, plummeting in 1998 to 17.9 percent

of the total (from 56.6 percent in 1997).

Meanwhile, U.S. exports to Mexico under HTS

1702.60 subheading (which contains HFCS 55)

increased in 1997 and 1998, even though the product

became dutiable in January 1998. However, Mexico’s

share of total U.S. exports declined in both years: it

was 89.1 percent in 1996, 73.3 percent in 1997, and

60.9 percent in 1998. U.S. exports to Mexico under

HTS subheading 1792.90, which contains the

high–fructose syrup HFCS 90, dropped precipitously in

1997, but recovered somewhat in 1998. Mexico’s share

of total U.S. exports was highest in 1996 at 63.8

percent; this share dropped steeply in 1997 to 3.6

percent and was up moderately at 9.5 percent in 1998.

HFCS 90 became dutiable only at the end of this time

span, in September 1998.

Meat

The NAFTA made Mexican imports of live cattle

and hogs and most beef and veal from the United

States and Canada free of duty. However, the

possibility of such imports into Mexico becoming once

again dutiable emerged on October 21, 1998, when

SECOFI initiated two antidumping investigations

145 Ibid.

146 USITC, The Year in Trade: OTAP 1997, USITC

publication 3103, May 1998, p. 111.

against imports originating in the United States: one

covering live cattle, beef, and edible offal,147 the other

covering hogs for slaughter.148 The announcement of

these cases in the October 22, 1998, issue of the Diario

Oficial did not include the immediate imposition of

countervailing duties.149

Cattle and Beef

SECOFI’s investigation regarding cattle and beef

is based on Mexican imports from the United States

during June through December 1997. The investigation

was initiated in response to a petition submitted by the

National Association of Mexican Feedlots (AMEG),

the National Cattlemen’s Confederation (CNG), and

several Mexican slaughterhouses and packing plants

(TIF).

This was the second Mexican antidumping case

involving U.S. beef since NAFTA took effect in

January 1994.150 The previous one, filed in May 1994

by the CNG alone, was settled in January 1996, i.e.,

before SECOFI had an opportunity to make a final

determination. Settlement took the form of a

Memorandum of Understanding (MOU) between the

CNG on the Mexican side and what is now the U.S.

National Cattlemen’s Beef Association (NCBA) and

the U.S. Department of Agriculture on the U.S. side.

Various provisions contained in this MOU included

collaboration between the United States and Mexico to

increase mutual trade in beef, variety meats, and beef

cattle; meetings to review animal health and inspection

issues; technical assistance from the U.S. industry to

the CNG; and U.S. commitment to provide credit lines

to cover a substantial portion of Mexican ranchers’

import needs for the next 2 years.151 

147 The affected provisions in Mexico’s Tariff Schedule

are the following: 0102.90.99, 0201.10.01, 0202.10.01,

0201.20.99, 0202.20.99, 0201.30.01, 0202.30.01,

0206.21.01, 0206.22.02, and 0206.29.99.

148 The affected provision in Mexico’s Tariff Schedule

is 0103.92.99, which covers live pigs whose weight is equal

to, or exceeds, 50 kilograms.

149 The “Diario Oficial” is equivalent to the Federal

Register in the United States.

150 U.S. Department of Agriculture, Attache Query

Detail, GAIN Report #MX8113, Sept. 30, 1998, found at

Internet address http://www.fas.usda.gov, retrieved on 

Oct. 29, 1998; and U.S. Department of State telegram,

“Mexico Initiates Dumping Investigation of U.S. Origin

Hogs, Cattle, Beef and Beef Offal,” message reference 

No. 10179, prepared by U.S. Embassy, Mexico City, 

Oct. 15, 1998.

151 USITC, Cattle and Beef: Impact of the NAFTA and

Uruguay Round Agreements on U.S. Trade, USITC

publication 3048, July 1997, pp. 4–10.
69

Table 4-1

High-fructose corn syrup: Total U.S. exports and exports to Mexico, 1993-98

(In metric tons)

Percent

change

1993 1994 1995 1996 1997 1998 1997/1998

All countries:

 HTS1702.401 . . . . . . . . 27,741 33,094 24,835 42,593 24,203 49,786 105.7

 HTS1702.602 . . . . . . . . 77,357 85,837 76,842 177,120 245,243 340,337 38.8

 HTS1702.903 . . . . . . . . 14,057 17,909 71,371 86,378 34,008 70,865 108.4

 Total . . . . . . . . . . . . 119,155 136,840 173,048 306,091 303,454 460,988 51.9

Mexico:

 HTS1702.401 . . . . . . . . 25,839 28,527 7,862 25,318 13,694 8,924 -34.8

 HTS1702.602 . . . . . . . . 23,938 64,218 51,901 157,829 179,825 207,089 15.2

 HTS1702.903 . . . . . . . . 2,077 1,962 25,828 55,097 1,225 6,744 450.4

 Total . . . . . . . . . . . . 51,854 94,707 85,591 238,244 194,744 222,757 14.4

Percent

Mexico as percentage of

total:

 HTS1702.401 . . . . . . . . 93.14 86.20 31.66 59.44 56.58 17.92 -

 HTS1702.602 . . . . . . . . 30.94 74.81 67.54 89.11 73.33 60.85 -

 HTS1702.903 . . . . . . . . 14.78 10.96 36.19 63.79 3.60 9.52 -

 Average . . . . . . . . . 43.52 69.21 49.46 77.83 64.18 48.32 -

1 HTS 1702.40 products contain at least 20 percent, but less than 50 percent, by weight of fructose. This group

includes HFCS 42.

2 HTS 1702.60 products contain at least 50 percent by weight of fructose. This group includes HFCS 55.

3 HTS 1702.90 products are an enriched form of HFCS, containing 90 percent or more of fructose.

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

Prior to the announcement of the October 1998

investigation, U.S. agricultural officials met with the

leaders of the CNG in May 1998 to discuss what the

Mexican party perceived as persistent problems of their

beef trade.152 Mr. Cesar Gonzalez, then president of

CNG, explained that U.S. beef shipments to Mexico

continued to soar, notwithstanding the 1996 MOU. He

admitted that the domestic industry encountered major

internal problems irrespective of imports, including

high feed costs and insufficient financing. Because of

such problems, losing pre–NAFTA duty protection153

—he said—made competition for the domestic

industry with U.S. beef difficult.154

152 U.S. Department of State telegram, “Meeting with

CNG to Discuss Prospects of Antidumping Petition Against

U.S. Beef,” message reference No. 05144, prepared by U.S.

Embassy, Mexico City, May 27, 1998.

153 Before NAFTA became effective, imports of live

cattle for immediate slaughter entering Mexico from the

United States and Canada were dutiable at 15 percent ad

valorem, fresh or chilled beef was dutiable at 20 percent ad

valorem, and frozen beef was dutiable at 25 percent ad

valorem.

154 The United States is virtually the only foreign

supplier of beef to Mexico.

Notably, at the May 1998 meeting, CNG did not

claim that U.S. beef had been sold at less than fair

value.155 Nonetheless, a few months later in October,

SECOFI charged that imports of live cattle, beef, and

edible beef offal from the United States have reached

the Mexican market at prices significantly below the

cost of production. SECOFI expressed concern about

the damage that the Mexican industry might have

suffered from these prices, identifying 11 Mexican

importers and 8 U.S. exporters as the responsible

parties. In accordance with Mexican antidumping

procedures, no final determination is scheduled to be

made until the second half of 1999. SECOFI expects

final public statements to be submitted by July 30,

1999.

Mexico is the dominant U.S. export market for

cattle, and the third largest U.S. market for fresh and

frozen beef (after Japan and Canada). U.S. exports of

live cattle, beef, and beef products (fresh or frozen beef

155 U.S. Department of State telegram, “Meeting with

CNG to Discuss Prospects of Antidumping Petition Against

U.S. Beef,” message reference No. 05144, prepared by U.S.

Embassy, Mexico City, May 27, 1998.
70

and beef offal) to Mexico declined in 1995, in part as a

result of the peso devaluation, but increased steeply

thereafter, as shown in table 4–2.

This increase of U.S. exports showed both greater

demand in Mexico and the competitiveness of U.S.

producers, who have access to cheaper feed and enjoy

greater economies of scale than their Mexican

counterparts.

Hogs

The investigation covering live hogs for slaughter

whose weight is equal to, or exceeds, 50 kilograms is

based on imports during the period October1997

through March 1998.156 SECOFI initiated this case in

response to a petition filed by the Mexican Pork

Producers Council (CMP), a group representing

large–scale Mexican producers that accounts for 70

percent of domestic pork production.157

SECOFI alleges that the economic crisis in

Southeast Asia and the depreciation of currencies in

that region against the dollar caused orders of pork

products from the United States to be canceled, which

resulted in an oversupply of both pork products and

live hogs in the U.S. market. This, in turn—says

SECOFI—depressed prices below U.S. production

costs and induced U.S. producers to offer hogs on the

Mexican market at prices below normal value.158

However, U.S. officials see the real problem in the

fact that most Mexican hog producers are not

competitive with the U.S. industry. Part of the industry

consists of backyard operations that need to be

modernized. In addition, the producers depend on

imported inputs, especially feed grains, unless

expensive domestic feed grains are used.159

156 U.S. Department of Agriculture, Attache Query

Detail, Global Agriculture Information Network (GAIN)

Report #MX8113, Sept. 30, 1998, found at Internet address

http://www.fas.usda.gov, retrieved on Oct. 29, 1998; and

U.S. Department of State telegram, “Mexico Initiates

Dumping Investigation of U.S. Origin Hogs, Cattle, Beef

and Beef Offal,” message reference No. 10179, prepared by

U.S. Embassy, Mexico City, Oct. 15, 1998.

157 U.S. Department of State telegram, “Mexican Pork

Producers File Antidumping Petition Against U.S. Swine

Industry,” message reference No. 05747, prepared by U.S.

Embassy, Mexico City, June 10, 1998.

158 U.S. Department of Agriculture, Attache Query

Detail, GAIN Report #MX8113, Sept. 30, 1998, found at

Internet address http://www.fas.usda.gov, retrieved on 

Oct. 29, 1998.

159 U.S. Department of State telegram, “Mexican Pork

Producers File Antidumping Petition Against U.S. Swine

Industry,” message reference No. 05747, prepared by U.S.

Embassy, Mexico City, June 10, 1998.

Meanwhile, pork is an important component of

Mexico’s basic market basket, from which the rate of

inflation is calculated.160

Mexico has been virtually the only export market

of the United States for live hogs and has been the

second or third largest market (after Japan and, in some

years. Canada), for fresh and frozen pork products.

U.S. exports of hogs (HTS subheading 0103.92) to

Mexico fluctuated widely in the 1990s. Exports

dwindled to virtually nil in 1995 during Mexico’s

“peso crisis,” which triggered a sharp drop of most

imports that year. Exports subsequently recovered

somewhat, but reached record levels in 1998, when

they soared to nearly eight times their value of 1997

and nearly twice their prior record of 1994. It was this

surge that apparently gave rise to the dumping charges

discussed above. The following tabulation shows U.S.

exports, by value, of live hogs to Mexico in 1993–98:

Thousand

Annual: of dollars

1993 2,549 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1994 8,764 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1995 485 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1996 2,594 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1997 1,871 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1998 16,291 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Source: Official U.S. Census Data.

China

Intensive negotiations between China and the

United States regarding China’s WTO accession

continued in 1998. These issues have continued into

1999 as the USTR requested, in January 1999, that the

USITC provide an investigative report assessing the

probable economic effects on the United States of

China’s accession to the WTO.161 The two main areas

of negotiations in 1998 included (1) bilateral market

access commitments on tariff rates, elimination of

nontariff measures for industrial agriculture products,

and progressive liberalization for services and (2)

multilateral commitments to allow China to conform

its current trade regime in accordance with WTO

principles and obligations (particularly national

treatment, nondiscrimination, transparency, balance of

160 In January 1999, SECOFI levied preliminary

compensatory duties on live hogs imported from the United

States.

161 USITC, “Assessment of the Economic Effects on the

United States of China’s Accession to the WTO,” press

release, Jan. 20, 1999.
71

Table 4-2

U.S. exports to Mexico of live cattle, beef and beef products, 1994-98

Thousands of dollars

Percent change

1994 1995 1996 1997 1998 1997/1998

Live cattle . . . . . . . . . . . . . . . . . . . . . 134,351 41,533 105,800 236,466 241,106 2.0

Fresh, chilled, or frozen beef . . . . . 66,771 22,076 81,415 184,599 231,916 25.6

Beef and beef offal . . . . . . . . . . . . . 22,161 10,562 26,885 30,890 43.233 40.0

 Total . . . . . . . . . . . . . . . . . . . . . . . 223,283 74,171 214,100 451,955 516,255 14.2

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

payments, safeguards, subsidies, standards, customs

valuation, state trading, and price controls).162

The Clinton Administration announced in May

1998 that, pursuant to section 402 of the Trade Act of

1974 (the Jackson-Vanik Amendment), it would extend

normal trade relations (NTR) with China for an

additional 12 months. China’s receipt of NTR

treatment with the United States is reviewed annually

by the President, subject to congressional disapproval.

The President will also decide in June 1999 whether to

renew China’s NTR status for another year.163

Market Access

China’s domestic developments in 1998 included

the protection of the national fuel industry, a change in

policy toward pyramid schemes and fraudulent sales

practices, and the first–ever antidumping case against

newsprint producers from the United States, Canada,

and South Korea. There has also been increased

government support for the private sector, in part to

help control a growing unemployment problem in the

labor force.

In a circular jointly issued by the State Economic

and Trade Commission, State Development Planning

Commission, Ministry of Foreign Trade and Economic

Cooperation (MOFTEC), and General Administration

of Customs, China suspended imports of diesel oil and

gasoline in any form and froze any unused quota

allocations effective September 20, 1998. Diesel oil

and gasoline needed by domestic enterprises in special

economic zones and foreign enterprises were to be

162 USTR, “Bilateral Negotiations Report,” Feb. 4,

1999.

163 Ibid.

provided by domestic sources at international

prices.164

In 1997, China stepped up a battle against

unethical sales techniques such as pyramid schemes

and fraudulent sales practices. The State Council

issued a complete ban on direct selling in April 1998,

which affected both domestic and foreign companies;

caused Amway, Avon, Mary Kay, Sara Lee, and other

companies to cease operations in China; and resulted in

a decline in the net worth of those companies on the

New York Stock Exchange. Faced with the possibility

of President Clinton raising the issue during his June

visit to China, the State Council published a

proclamation on June 18 allowing direct selling

companies to modify their selling methods to comply

with “store–selling” regulations. The new regulations

allow foreign direct sales companies to market their

products through sales promoters to Chinese

consumers, provided that the parent company

maintains retail access throughout the country. Sales

promoters differ from direct sales distributors in that

they do not take title to the goods and work solely on a

commission basis.165

China announced the investigation and proceedings of its first–ever antidumping case against

newsprint producers from the United States, Canada,

and Korea in late 1997. No U.S. companies responded

to MOFTEC’s antidumping question- naire.166

Accordingly, U.S. companies were treated as

noncooperative and lost their right to participate in any

164 “A Temporary Suspension of Diesel Oil and

Gasoline Imports,” China Economic News, Series No. 939,

Oct. 12, 1998.

165 U.S. Department of State telegram, “Foreign Direct

Sellers Back in Business Under New Regulations,” message

reference No. 14472, prepared by U.S. Embassy, Beijing,

Aug. 20, 1998.

166 U.S. Department of State telegram, “MOFTEC’s

Initial Response to Demarche,” message reference No. 9272,

prepared by U.S. Embassy, Beijing, June 8, 1998.
72

hearings. At a May 20 meeting, MOFTEC and State

Economic and Trade Commission (SETC) officials

suggested that China’s preliminary determination could

result in a 20 percent ad volorem penalty duty on U.S.

newsprint, 30 percent on Canadian newsprint, and 40

or 50 percent on South Korean newsprint.167 These

penalties would be assessed in addition to the sliding

duty that China implemented on newsprint on October

1, 1997, which increases the import tariff to as high as

45 percent if the price of the imported newsprint drops.

As a result of the investigation, MOFTEC

announced a preliminary determination in July 1998

that newsprint from the three countries had been

dumped in China at margins of up to 78 percent below

domestic levels.168 A final determination is set for

early 1999, yet importers of newsprint from the three

countries must post cash guarantees equal in value to

the margin assessed against it.169 The Chinese

domestic paper and newsprint industry consists of

many low–capacity state–run factories troubled by

inefficiency, an excess of labor, and a general ban on

logging imposed in response to summer 1998

flooding.170 As a result of the new duties, domestic

buyers will most likely face shortages of affordable

newsprint.171

Commencing January 1, 1999, foreign firms will

receive national treatment for export tax rebates, and

private companies will be able to directly conduct

foreign trade. The new policy reflects growing

government support for the private sector to help

absorb increasing numbers of unemployed workers.172

State manufacturing firms could also face less red tape,

with only perfunctory registration needed for

import–export activity.173

Bilateral Economic

Developments

In a written statement issued on October 23, 1998,

the USDA announced a ban on any imports from China

167 U.S. Department of State telegram, “China’s

Newsprint Antidumping Case,” message reference No. 9140,

prepared by U.S. Embassy, Beijing, June 4, 1998.

168 U.S. Department of State telegram, “National Trade

Estimate,” message reference No. 721, prepared by U.S.

Embassy, Beijing, Jan. 22, 1998.

169 U.S. Department of State telegram, “China’s

Newsprint Antidumping Case,” op.cit.

170 Ibid.

171 Ibid.

172 Trade Reports International Group, Washington

Trade Daily, Oct. 9, 1998.

173 China Watch, Orbis Publications, L.L.C., Vol. 1, 

No. 4, Oct. 15, 1998.

packed in untreated solid wood material.174 All

shipments that departed China for the United States on

or after December 17, 1998, are subject to an interim

rule that requires that exporters in China must

heat–treat, fumigate, or treat with preservatives all

solid–wood packing materials and that such materials

must be accompanied by official certification from the

Chinese Government verifying treatment.175 Packing

material that departed from China prior to December

17 was not affected by the interim rule, even if it

arrived in the United States after December 17.176

Shipments that do not contain any solid–wood packing

material must include an exporter statement indicating

that the shipment contains no such materials. The ban

is to halt the introduction of wood–boring pests such as

the Asian long–horned beetle.177 USDA estimated that

the United States has had economic losses of more than

$40 billion for the forestry, fruit, maple syrup, and

tourism industries as a result of damage done by the

beetles.178

In 1992, the United States and China signed an

MOU that committed China to strengthen its

intellectual property rights (IPR) legal regime.

Through 1995, China remained the world’s leading

exporter of pirated optical media products—compact

discs (CDs), video discs (VCDs), and software

CD–ROMs (containing software and video games). On

February 26, 1995, the United States and China signed

an IPR agreement designed to ensure both a crackdown

on piracy and real market access for the

above–mentioned media products. Since the

Intellectual Property Rights Enforcement Agreement

was finalized in 1995,179 China has shut down 64 CD

production lines, including 54 underground factories

that were not licensed, and 10 others that were

improperly registered.180 As a result, U.S. industry

losses from optical media exports dropped

significantly. In June 1996, the United States and

China exchanged information in an IPR accord that

detailed the steps that China had taken, and would take

in the future, to ensure effective implementation of the

1995 Agreement, and China was removed from the

174 The Bureau of National Affairs, Inc., International

Trade Daily, Art. No. 53061002, Nov. 2, 1998.

175 Ibid.

176 Ibid.

177 In May 1999, USDA updated the procedures

supporting the ban by increasing its inspection force and

modifying documentation requirements.

178 Ibid.

179 For more information on the 1995 U.S.–China IPR

agreement, see USITC, The Year in Trade: OTAP 1996, USITC publication 3024, Apr. 1997, p. 107.

180 USTR, “USTR Announces Results of Special 301

Annual Review,” press release 98–44, May 1, 1998.
73

“priority watch list” under the “Special 301” trade law.

China has been on the “Section 306 monitoring” list

since April 1997. Section 306 of the Trade Act of

1974, as amended, authorizes the USTR to impose

trade sanctions if there is a slippage in China’s

enforcement of the bilateral IPR agreements.181

In June 1998, the southern province of Guangdong

held China’s largest–ever antipiracy event promoting

official commitments to protecting IPR, public

awareness of the problem, and the success of

provincial antipiracy enforcement.182 Provincial

officials stressed the region’s commitment to

protecting IPR and the value that the provincial

leadership places on its close cooperative relationship

with the regional U.S. consular officials. The event

also showcased the success of the March to June

enforcement campaign that resulted in 43 arrests, more

than 2 million seized audiovisual products, and more

than 50 fines issued to retail stores for illegal sales.183

WTO Accession

Talks between China and the United States on

WTO accession have been inconclusive, particularly

because of a rising U.S. bilateral trade deficit that

reached almost $60 billion in 1998.184 Continued

market access restrictions for U.S. businesses to key

Chinese markets have slowed any new breakthroughs

in China’s effort to join WTO. The deputy director of

SETC noted at a November 1998 meeting with U.S.

officials that differences in the U.S. and Chinese

positions on WTO were still great and had been

compounded by the regional economic crisis.185 In a

September 1998 Ministry of Foreign Affairs (MFA)

press briefing, a spokesman remarked that the U.S.

trade deficit with China is a statistical exaggeration and

asserted that the most important factor contributing to

the problem was U.S. restrictions on the export of

high–technology goods to China.186 In December

181 Ibid.

182 U.S. Department of State telegram, “IPR Protection

in Guangdong: Good Efforts at All Levels,” message

reference No. 1808, prepared by American Consulate,

Guangzhou, June 17, 1998.

183 Ibid.

184 U.S. Department of State telegram, “China: SETC

on Bilateral Trade Matters, WTO, and APEC,” message

reference No. 19305, prepared by U.S. Embassy, Bejing,

Dec. 1, 1998.

185 Ibid.

186 U.S. Department of State telegram, “Chinese MFA

Press Briefing: Sept. 24,” message No. 16686, prepared by

U.S. Embassy, Beijing, Sept. 25, 1998.

1998, the USITC received a request from the USTR for

a report assessing the probable economic effect on the

United States of China’s accession to the WTO.187

Tariffs and Taxes

China has taken steps to reduce tariffs pursuant to

its bilateral commitments and in an effort to support its

WTO accession bid. Many tariff reductions are still

under negotiation in the context of WTO discussions

with 36 trading partners. In November 1996, China’s

President Jiang Zemin announced that China would

reduce the simple average tariff rate from the existing

23 percent ad valorem level to 15 percent by the year

2000. The October 1, 1997, tariff adjustments lowered

China’s simple average tariff level from 23 percent to

17 percent. Under the most recent tariff reductions, the

average tariff for materials, parts, and finished products

for machinery and electronic goods stands at 8.94

percent, 10.76 percent, and 14.92 percent, respectively.

China has also indicated a plan to cut its highest tariffs,

some up to 80 percent, which apply to luxury goods

and goods for which China wishes to develop domestic

capacity. Although the recent tariff reductions are

substantial, the consumption and value–added taxes

(VAT) promulgated in 1994 significantly increase the

overall effective tax rate on many imported items.

China’s VAT is usually 13 or 17 percent, and China

first imposes the import tariff and any applicable

consumption tax and then incorporates those amounts

into the base on which the VAT is applied.188

In January 1996, China announced a 2–year

phaseout of investment incentives for projects not

approved by April 15 that year. The announcement led

to a rush of investors seeking project approvals before

the cutoff date. A similar rush to import capital

equipment occurred as China imposed an end–of–year

deadline for the approved projects to bring in all capital

equipment before the duty/value–added tax–free

incentive was terminated. Policymakers have realized

that the elimination of incentives not only dampened

investor interest but also hurt the very types of

investment projects that China intended to encourage,

particularly those related to high–tech industries. In

addition, the rationale behind the elimination of the

incentive had been that it would help offset expected

declines in duty collection following the tariff

reductions in 1996. However, duty collections actually

increased significantly under the reduced tariff–regime.

187 The report, USITC Investigation No. 332–403, is to

be completed in June 1999.

188 U.S. Department of State telegram, “Draft National

Trade Estimate Report: People’s Republic of China,”

message No. 3372, prepared by U.S. Embassy, Beijing, 

Feb. 1, 1998.
74

By early 1997, policymakers began considering the

reintroduction of the incentives. On January 1, 1998, a

new policy of providing duty/VAT–free importation of

capital equipment for selected foreign investment

projects and domestic investment projects was

announced. Foreign investment projects that fall under

categories of “encouraged” and “restricted category B”

of China’s investment guidelines and that have

approved feasibility studies may apply to the State

Planning Commission offices for a certificate

establishing their status as a “nationally encouraged

project.” “Restricted category B” investments face

stringent limits on their scope and activities, but may

be approved as part of pilot schemes or as part of a

centrally controlled growth plan. Domestic investment

projects are eligible to apply for the certificate if the

project falls within categories on a separately issued

list of “industries, products, and technologies whose

development are encouraged by national policy.” The

duty/VAT–free treatment may only be applied to the

importation of capital equipment falling in Harmonized

System tariff chapters 84–90 (most machinery,

mechanical appliances, electrical equipment, and

measuring devices) and not appearing on a separate

China customs exceptions list.

The second major change to China’s foreign

investment regime is the revision of its “catalogue of

industries for foreign investment,” published on

January 8, 1998. The lists were introduced in July 1995

to provide investors and local officials with guidelines

for determining preferential treatment, restricted

approval, or denial of a foreign investment project. The

revised lists made numerous and notable additions and

deletions to the category of manufactured goods. There

were few or no changes to the services sector. The

“prohibited” list remains unchanged. Notably,

telecommunications services, an area that the United

States and other nations have pressured China to open

in WTO talks, remains on the prohibited list. Additions

to the restricted category B list in the areas of

agriculture, medical equipment, paper, power

generation, and medicines may provide new market

access for U.S. investors.189

Nontariff Measures

On October 10, 1991, the U.S. Government

initiated a 301 investigation concerning four broad

189 U.S. Department of State telegram, “China’s New

Foreign Investment Regulations; Duty–Free Imports of

Some Capital Equipment For Selected Projects Reinstated,”

message reference No. 2063, prepared by U.S. Embassy,

Beijing, Jan. 13, 1998.

areas of China’s market: the absence of transparency;

import licensing requirements; import quotas,

restrictions, and controls; and standards and

certification requirements. The investigation resulted in

the signing of a Memorandum of Understanding

(MOU) on October 10, 1992, that committed China to

significant liberalization of key aspects of its import

administration, including reduction of trade barriers

and the gradual opening of its market to U.S. exports.

At the end of 1995, China abolished nontariff barriers

on schedule for the 176 items specified under the 1992

market access MOU. Several items for which abolition

of import restrictions were required at the end of 1996

under the market access MOU are no longer listed in

China customs publications as being subject to

nontariff measures. Most recently, MOFTEC issued an

official circular that phased out import control measure

of 13 eight–digit products on December 13, 1997.190

Nonetheless, new alternative measures and some

aspects of China’s new industrial policies may be

undercutting the market access gains that had been

anticipated as a result of changes obligated under the

market access MOU. These measures include the

“automatic registration” requirement, electro–

mechanical product import control measures,

regulations on the administration of medical

equipment, and camera import control measures.

About 400 products covered by the annex to the 1992

market access MOU are now subject to these automatic

registration requirements.191

After 12 years of WTO accession negotiations,

China’s most recent proposals still did not address a

wide range of issues such as market opening in

agricultural products, industrial goods, consumer

goods, and services. In particular, the progress of

opening the services sector to foreign competition,

including the fields of legal, architectural, distribution,

and financial services, has been slow.

Hong Kong

Hong Kong has made progress in legislative

improvements, notably the implementation of a

licensing regime for imported CD production

equipment in late 1997, the enactment of a new

Copyright Ordinance requiring licensing and

inspection of CD production sites in early 1998, and

190 U.S. Department of State telegram, “1992 Market

Access Compliance: Year–End 1997 Elimination of

Non–Tariff Measures,” message reference No. 2474,

prepared by U.S. Embassy, Beijing, Feb. 6, 1998.

191 U.S. Department of State telegram, “Draft National

Trade Estimate Report: People’s Republic of China,”

message reference No. 3372, prepared by U.S. Embassy,

Beijing, Feb. 2, 1998.
75

the drafting of laws to license and regulate the

operation of optical disc production facilities. The new

law, which became effective in August, gives Hong

Kong authorities new powers to control illegal CD

production of all types.192 In raids on April 26, 1998,

Hong Kong authorities seized some 7 million compact

discs and closed a facility capable of producing 1.2

million compact discs per day. At the time of the raid,

the facility was producing pirated U.S. movies and

U.S. sound recordings. U.S. authorities look forward to

full implementation of the antipiracy legislation,

effective enforcement actions, and a significant

reduction in piracy rates throughout 1998.193

On September 15, 1998, the United States and the

Hong Kong Special Administrative Region agreed to

additional steps to combat illegal circumvention of

textile and apparel quota arrangements. The agreed

measures include greater cooperation in joint factory

observation visits in Hong Kong, increased information

sharing, and enhanced enforcement measures to be

taken by the United States and Hong Kong. In addition,

on the basis of this greater cooperation, the United

States will no longer require original signatures by

manufacturers and subcontractors on U.S. textile

declarations and certification by importers on the

accuracy of textile declarations.194

Taiwan

Taiwanese officials consider WTO accession

before 2000 a “goal of utmost importance.”195 A

number of unresolved issues, however, blocked

Taiwan’s effort to join the WTO during 1998. Bilateral

issues that need to be resolved include an unresolved

issue with Canada on downpayment quotas for meat

192 USTR, “USTR Announces Results of Special 301

Annual Review,” press release 98–44, May 1, 1998.

193 USTR, “USTR Welcomes New Hong Kong Moves

Against IPR Piracy,” press release 98–43, Apr. 30, 1998.

194 USTR, “United States and Hong Kong Agree to

Enhanced Cooperation to Combat Illegal Textile

Transshipment,” press release 98–84, Sept. 17, 1998.

195 U.S. Department of State telegram, “Taiwan WTO:

Letter From President Lee on Taiwan’s Accession,” message

reference No. 4754, prepared by the American Institute in

Taiwan, Taipei, Nov. 13, 1998.

products;196 the lifting of an import ban on large U.S.

motorcycles and related emissions issues, the

elimination of subsidies for Taiwanese–produced auto

components, an amendment to the lawyers’ law that

criminalizes foreign legal partnerships, discrimination

against foreign–made high–quality medical devices,

and better enforcement of Taiwan’s legal regime for

protecting intellectual property rights.197

In 1998, Taiwan reached a series of bilateral WTO

agreements with the United States in the fields of

telecommunications interconnection compliance198

and the passenger auto market.199 Despite the East

Asian financial crisis, Taiwanese officials have

indicated their confidence in Taiwanese market

strength, which they expect to return to traditional

levels in 1999, and their continued efforts in the WTO

accession process.200

Bilateral Economic

Developments

On January 21, 1998, Taiwan’s President signed

the amended copyright bill into law.201 The key

provisions of the new copyright law are its extension of

retroactive protection to works created fifty years prior

to the date of Taiwan’s accession to WTO and its

inclusion of “performance works” to be protected. The

amended copyright law also brings Taiwan’s system

for inspection and detention of goods suspected of

infringing copyrights into conformity with the WTO

TRIPs Agreement.

On April 30, 1997, USTR removed Taiwan from

the Special 301 list for the first time since 1988.202

USTR announced the results of its annual Special 301

review on May 1, 1998. The announcement indicated

196 Similar to the downpayment quotas that the U.S.

provides Taiwan for meat products. 197 U.S. Department of State telegram, “Taiwan/WTO:

Status Report and Next Steps for Unresolved Issues,”

message reference No. 118, prepared by the American

Institute in Taiwan, Taipei, Jan. 15, 1999. 198 U.S. Department of State telegram, “Taiwan/WTO:

Interconnect Compliance,” message reference No. 5044,

prepared by the American Institute in Taiwan, Taipei, Dec. 8,

1998.

199 U.S. Department of State telegram, “Taiwan/WTO:

Bilateral Auto Issues Resolved,” message reference No.

4040, prepared by the American Institute in Taiwan, Taipei,

Sept. 16, 1998. 200 U.S. Department of State telegram, “Taiwan WTO:

Letter From President Lee on Taiwan’s Accession,” message

reference No. 4754, prepared by the American Institute in

Taiwan, Taipei, Nov. 13, 1998. 201 U.S. Department of State telegram, “Taiwan IPR:

Amended Copyright Bill Signed,” message reference No.

357, prepared by the American Institute in Taiwan, Taipei,

Jan. 28, 1998.

202 See USITC, The Year in Trade, OTAP 1997, USITC

publication 3103, May 1998, p. 121 for more information.
76

that Taiwan authorities had made assurances to address

U.S. concerns and that the USTR would closely

monitor implementation of the specific measures over

the following several months.

However, the U.S. viewed IPR enforcement actions

in Taiwan as ineffective in reducing the production and

export of pirated and counterfeit goods, especially

video games and components, CD–ROMs, and music

and video CDs.203 Taiwan remained one of the top

four sources of infringing goods that U.S. Customs

agents seized on importation; it was also a major

source of such exports to Latin American markets,

especially Paraguay. Consequently, the USTR placed

Taiwan back on the Special 301 watch list on August

11, 1998.204

WTO Accession

In 1992, Taiwan applied to join the General

Agreement on Tariffs and Trade (GATT)—the

predecessor of the WTO—under the name of “the

Customs Territory of Taiwan, Penghu, Kinmen, and

Matsu.” Taiwan must negotiate and formally sign all

of its bilateral agreements with WTO contracting

parties in order to realistically be considered for WTO

membership.205 As of September 1998, Taiwan had

virtually complete bilateral accords with 26 WTO

contracting parties that wished to negotiate Taiwan’s

WTO entry terms, including the United States. Work is

continuing on the multilateral side of the negotiations,

as Taiwan attempts to reach agreement with WTO

members on the protocol setting out its commitments

on implementation of WTO rules.

As part of the move to WTO entry, Taiwan has

recently implemented three rounds of tariff reductions.

The first, effective from June 19, 1998, cut duties on

350 agricultural and 780 industrial items from an

average rate of 17.2 percent to 14.6 percent. The

second, also effective from June 19, begins the first

year of a four–year tariff reduction program on

information technology items, which previously stood

at an average of 4.7 percent. Tariffs on all information

technology goods will be eliminated in the fourth year,

203 U.S. Department of State telegram, “Taiwan: Draft

National Trade Estimate Report,” message reference No.

370, prepared by the American Institute in Taiwan, Taipei,

Jan. 26, 1998.

204 USTR, “USTR Announces Special 301 Action on

Taiwan,” press release 98–77, Aug. 11, 1998.

205 U.S. Department of State telegram, “Taiwan/WTO:

Status Report and Next Steps for Unresolved Issues,”

message reference No. 118, prepared by the American

Institute in Taiwan, Taipei, Jan. 15, 1999.

as required by the terms of the WTO’s Information

Technology Agreement. The third round, approved by

the Cabinet on July 30 but effective retroactively from

July 1, cut tariffs on nearly 800 items, mostly

agricultural and mineral commodities, from an average

of 8.3 percent to 8.1 percent.206 Nonetheless, despite

progress in Taiwan’s accession negotiations,

recognition by the international community in 1971 of

a “Single China” approach suggests that Taiwan is not

likely to accede to the WTO before mainland China.207

Market Access

On August 7, 1998, the United States concluded

the bilateral negotiations of a market access package

agreed to in February for Taiwan’s accession to WTO;

the United States also agreed to submit this package to

WTO. Recent bilateral discussions have focused on

Taiwan’s “emerging industries” subsidies and

agricultural import procedures.208 The February 20,

1998 agreement,209 which includes both immediate

market access and phased–in commitments, will

provide substantially increased access for U.S.

industrial goods, services, and agriculture exports to

Taiwan, the seventh–leading export market of the

United States.

Agriculture

Taiwan, in preparation for WTO accession and in

an attempt to phase out its tariff rate quota system, will

provide immediate market opening of 5,000 tons of

pork and 12,500 tons of variety meats annually for

U.S. products at current tariff rates. Taiwan has also

agreed to completely open its market for pork, variety

meats, and poultry to all WTO members upon

accession by establishing a tariff rate quota system.

The Agreement also covers special access for 10,000

tons of U.S. chicken meat at a tariff rate of 25 percent.

206 “Foreign Trade & Payments: Three Rounds of Tariff

Cuts Take Effect,” Country Reports: Taiwan, The Economic

Intelligence Unit Limited, Sept. 3, 1998.

207 As a specialized United Nations (UN) agency, the

GATT acknowledges United Nations General Assembly

Resolution 2758 of Oct. 25, 1971, that recognized only one

China. Although some GATT members at the GATT

meeting considering Chinese Taipei’s (i.e. Taiwan’s)

application interpreted this resolution to mean that Chinese

Taipei should not accede to the GATT before the PRC, other

members did not agree. Nonetheless, both sides agreed to

establish the Working Party on the Accession of Chinese

Taipei in 1992.

208 USTR, “USTR Announces Closure On Market

Access Package With Taiwan,” press release 98–74, Aug. 7,

1998.

209 USTR, “Fact Sheet: U.S.–Taiwan Market Access

Agreement,” Feb. 20, 1998.
77

Upon WTO accession, Taiwan will establish a tariff

rate quota for chicken meat before the market is

completely opened on January 1, 2005. The in–quota

tariff rate for chicken meat will be 25 percent ad

valorem upon accession, falling to 20 percent by 2004.

Taiwan will lift its ban on rice imports upon WTO

accession and establish an import quota schedule. A

portion of this quota will be allocated for

private–sector rice trade. The rest of the rice quota will

be imported by central authorities with conditions that

will facilitate its release for table use in Taiwan. In

addition to the market access agreement, Taiwan has

agreed to change its practices that have forced surplus

rice onto the international market.210

Industrial Tariffs

Taiwan has committed to reduce its average tariff

rates from 6.5 percent ad valorem to 4.9 percent, with

about two–thirds of the tariff reductions made upon

WTO accession. The remainder will be reduced by the

year 2002, with limited exceptions to 2004. Taiwan has

agreed to participate in all Uruguay Round

zero–for–zero sectoral initiatives, which include

chemical harmonization and the elimination of tariffs

on paper, pharmaceuticals, medical equipment,

construction equipment, steel, toys, furniture,

agriculture equipment, civil aircraft, and distilled

spirits. Apart from a few categories in which Taiwan

will eliminate duties in 2004, Taiwan has offered to

completely eliminate duties in these sectors by 2002.

Taiwan has already participated in the Information

Technology Agreement (ITA) and is an active

participant in the ongoing negotiations on ITA II.

Taiwan has agreed to support all of the APEC sectoral

initiatives, and when an agreement is reached in APEC

on the sectoral initiatives, Taiwan will include it in its

WTO schedule. The immediate APEC initiatives

include energy, equipment and services, environmental

goods and services, forest products, toys, chemicals,

medical equipment, fish and fish products, gems and

jewelry, and telecommunications mutual recognition

agreements.211

Automotive Products

Taiwan has agreed to a reduction of tariffs on

imported vehicles from 30 percent ad valorem to 20

percent over a reasonable period; a 25–30 percent

decrease in the commodity tax applied to most U.S.

vehicle imports; the complete elimination of a 9

percent subsidy on automobile components designed in

210 Ibid.

211 Ibid.

Taiwan; and the elimination of the 50 percent local

content requirement for auto parts, including an

immediate reduction in this level to 40 percent. Taiwan

has also agreed to facilitate used–car transactions,

long–term vehicle leasing, and deregulation of auto

insurance premiums.212

A tariff–rate quota (TRQ) on automotive products

will be in place for 10 years after WTO accession. For

countries enjoying access to the Taiwan market before

1997, the quota will be twice their highest level of

annual imports between 1990 and 1993. Tariffs on

motor vehicles outside the quota will be phased down

from 60 percent ad valorem to 20 percent over the

10–year TRQ period, after which the TRQ will be

entirely eliminated.213

Services

Taiwan, at the time of its WTO accession, has

agreed to open completely a number of service sectors,

including professional services (architects,

accountants, engineers, and lawyers), audiovisual

services, express delivery services, advertising,

computer services, construction, wholesale and retail

distribution, franchising, and environmental services

on WTO accession.

Taiwan has agreed to join the list of 69

international signatories to the WTO Global Basic

Telecommunications Agreement. Foreign companies

can hold a controlling interest (60 percent) in Taiwan’s

communications companies, and Taiwan has agreed to

move rapidly toward competitive international rates for

interconnection charges by the time that the

state–owned telecommunications company, Chung

Hwa, is privatized in 2001. Taiwan has joined with

other WTO members to provide guarantees of full

market access and national treatment for U.S.

companies in a range of financial services–banking,

insurance, and securities.

Government Procurement

Taiwan has agreed to participate in the WTO

Agreement on Government Procurement, a plurilateral

agreement that imposes international transparency

norms on government bidding processes. Taiwan’s

commitment covers about $15.4 billion in

infrastructure projects, one of the world’s largest

markets for government procurement contracts. Taiwan

will establish a new mechanism, under the Public

212 Ibid.

213 Ibid.
78

Construction Commission (PCC), for mediation and

binding arbitration applicable to contracts issued by the

Government agencies. The PCC will ensure the

transparency, uniformity, and integrity of Taiwan’s

procurement procedures by providing clear guidance to

procuring entities.214

Privatization of Taiwan’s Monopoly

Board

Taiwan is now in the process of privatizing its state

monopoly that controls sales of alcohol and tobacco

products and has intended that the spirits sector will be

substantially opened to foreign investment and

distribution. Taiwan has also agreed to eliminate

completely tariffs on both brown and white spirits

(e.g., bourbon, whiskey, gin, and vodka) by 2000.

Tariffs on beer will be completely eliminated by 2005.

Effective June 15, 1998, the restrictions on foreign

investment in Taiwan’s power transmission and

distribution sectors were lifted. The Ministry of

Economic Affairs has also approved a proposal to

privatize the state–run power company, Tai–Power, by

July 2001, and plans to release Tai–Power in stages

through overseas public offerings or global depositary

receipts. The ceiling of investment in these two sectors

is 50 percent, in accordance with the negative list of

foreign direct investment issued by the Executive

Branch of the Central Government.215

Korea

U.S.–Korean trade relations continued to be calm

in 1998, reflecting the easing of trade friction 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 has spurred some liberalizations and also has

diverted attention and energy away from trade

frictions. Newly inaugurated President Kim Dae–jung

has been more favorably inclined toward reform than

previous presidents. Also, the IMF rescue package has

called for liberalizations as a condition of its loans.

There was one major bilateral trade issue involving

the United States and Korea in 1998. In October, the

United States and Korea announced a Memorandum of

Understanding (MOU) ending a U.S. section 301

action concerning the access of foreign–made motor

214 Ibid.

215 U.S. Department of State telegram, “Foreign

Investment in Taiwan’s Power Transmission and Distribution

Businesses Allowed,” message reference 2913, prepared by

the American Institute in Taiwan, Taipei, July 1998.

vehicles to the Korean market. Minor issues included a

WTO ruling on a case brought by the United States

concerning Korean liquor taxes and the start of

negotiations on a U.S.–Korean bilateral investment

treaty.

Automobiles

The low level of sales of imported automobiles in

Korea has been a source of bilateral friction in recent

years. The United States has maintained that Korea

supports a “sanctuary market for automobiles” while

pursuing an aggressive automobile export strategy.216

Although Korea is now the world’s third largest auto

exporter after Japan and the EU, imports accounted for

less than one percent of all automobiles sold in Korea

in 1996 and 1997.217

The United States and Korea signed an MOU on

October 20, 1998, ending a section 301 investigation

by the United States with respect to “certain acts,

policies, and practices of the Government of the

Republic of Korea that pose barriers to imports of U.S.

autos into the Korean market.”218 The agreement is

expected to provide “substantial opportunities for U.S.

automakers by dismantling a range of discriminatory

Korean trade barriers in the near term and by

establishing a solid basis for steady improvement in the

future.”219

Background

The United States and Korea previously signed an

MOU in late 1995 designed to improve market access

for foreign automobiles. The 1995 MOU covered

Korea’s treatment of foreign automobiles in the areas

of taxation, standards and certification procedures,

advertising, auto financing, and consumer

perception.220

In the 1997 National Trade Estimate, the USTR

acknowledged that Korea had implemented most of the

commitments it made in the 1995 MOU, but stated that

actions recently taken by the Korean Government

216 USTR, “USTR–Commerce Joint Press Release on

the Implementation of the 1995 Agreement with Korea on

Autos,” press release No. 96–44a, June 3, 1996.

217 U.S. Department of State telegram, “Korean Auto

Industry: Overview and Trade in 1997 and Prospects for

1998,” message reference No. 1008, prepared by U.S.

Embassy, Seoul, Feb. 24, 1998.

218 62 F.R. 55843.

219 USTR, “U.S. Gains Major Improvements in Access

to Korean Motor Vehicle Market,” press release No. 98–93,

Oct. 20, 1998.

220 For more details on the 1995 automobile MOU, see

USITC, The Year in Trade, OTAP 1995, USITC publication

2971, Aug. 1996, pp. 63–64.
79

called into question Korea’s commitment to open its

domestic passenger car market to foreign competition.

The USTR specifically cited tacit Korean Government

approval of renewed antiimport efforts, an increase in

taxes on sport–utility vehicles (SUVs), the high 8

percent ad valorem tariff on imports of passenger

vehicles, its “cascading” taxes on autos that escalate

with engine displacement, traffic police harassment of

drivers of foreign autos, and tax audits that have been

threatened against persons leasing foreign autos or

otherwise indulging in “conspicuous consumption.”221

The USTR indicated that the United States would seek

further market–opening measures from Korea in

1997.222

The United States initiated negotiations with Korea

dealing with foreign access to Korea’s domestic

automobile market, and three rounds of working–level

talks occurred in August and September 1997. The

negotiations dealt with a number of market access

issues, including U.S. requests for—

 A reduction of the 8 percent duty on auto

imports to the U.S. level of 2.5 percent, as well

as a reduction in Korea’s WTO–bound rate of

80 percent;

 A change in the basis of automobile taxation

from the current system based on engine size to

one based on the age or price of the car;

 Korea to allow automobiles to be used as

collateral for loans;

 A simplification of the Korean safety inspection

and approval system; and

 Active and specific measures by the Korean

government to change the attitude of Korean

consumers toward foreign cars.223

Agreement was not reached during the

negotiations. As a result, on October 1, 1997, USTR

Charlene Barshefsky announced that she had identified

Korea’s barriers to imported automobiles as a priority

foreign country practice under the Super 301

provisions of U.S. trade law. Under Super 301

221 USTR, 1997 National Trade Estimate on Foreign

Trade Barriers, pp. 234, 250–1.

222 Ibid., p. 251.

223 Republic of Korea, “Washington Invokes Section

301 of the U.S. Trade Law Against Korea Demanding Wider

Foreign Access to Korea’s Automobile Market,” press

release, Oct. 18, 1997, found at Internet address

http://korea.emb.washington.dc.us/embnews/pressrelease/ba

ck971104.htm, retrieved Dec. 2, 1997.

procedures, the USTR initiated an investigation under

section 302 (b) (1) (A) of the Trade Act of 1974, as

amended, on October 20, 1997. Both sides agreed that

negotiations would not start until there had been a

cooling–off period, taking into account the Korean

presidential elections, which elevated long–time

dissident Kim Dae–jung to the presidency, and the

economic and financial crisis in Korea.224

Resolution of the Dispute

Negotiations resumed in April. After four rounds

of negotiations, agreement was reached on October 20,

1998, the normal deadline for reaching an agreement to

avoid sanctions under section 301 procedures. The

MOU covered the areas noted above, with the United

States achieving most of its goals in the negotiations. A

summary of MOU provisions follows:225

Motor Vehicle–Related Tax and Tariff Reductions

 The Korean Government pledged to lower its

WTO tariff bindings on motor vehicles from 80

percent to the current applied rate of 8 percent

and to actively participate in future multilateral

negotiations aimed at reducing or eliminating

tariffs in this sector.

 The Korean Government has committed to cut

taxes, resulting in an average cost savings of

over $2,000 (2,750,000 won) per vehicle

toward the purchase of a typical U.S. vehicle

and about $4,000 (5,500,000 won) over the life

of a vehicle, including a 40 percent reduction in

the annual vehicle registration tax for all motor

vehicles with engine displacements over 2000

cubic centimeters. U.S. passenger cars, and

especially minivans and SUVs, are more likely

to have these higher engine displacements than

Korean–produced vehicles.

 The Korean Government made a longer–term

commitment to simplify Korea’s motor vehicle

tax structure and to reduce the tax burden on

Korea motor vehicle purchases in ways that will

advance MOU objectives.

224 U.S. Department of State telegram, “Draft Talking

Points/Background for U.S. Trade Action Group (TAG)

Agenda Items,” message reference No. 7268, prepared by

U.S. Embassy, Seoul, Dec. 10, 1997.

225 USTR, “Fact Sheet: U.S.–Korea Memorandum of

Understanding: Market Access for Foreign Motor Vehicles,”

Oct. 20, 1998; USTR, “U.S. Gains Major Improvements in

Access to Korean Motor Vehicle Market,” press release No.

98–93, Oct. 20, 1998; and “United States of

America–Republic of Korea Memorandum of Understanding

Regarding Foreign Motor Vehicles in the Republic of

Korea,” Oct. 20, 1998.
80

Enhanced Motor Vehicle–Secured Financing System

 The Korean Government agreed to introduce a

secured financing system for the purchase of

motor vehicles that will enable Korean

consumers to more easily finance purchases of

both domestic– and foreign–produced vehicles.

Standards and Certification

 The Korean Government has committed to

streamline Korean measures regarding

standards and certification procedures to reduce

costs and time delays incurred through

redundant testing and excessive documentation

requirements. For example:

 The Korean Government will institute a

self–certification system by 2002, that will

allow U.S. manufacturers to certify their own

products. This commitment will make Korea

the third country in the world, in addition to the

United States and Canada, to institute a

self–certification system

 The Korean Government will accept U.S.

headlamp standards

 The Korean Government committed to

significantly streamline the current safety

standard certification system.

Scope

 The scope of the Agreement has been expanded

beyond passenger vehicles to include SUVs and

minivans.

Consultations/Goals and Objectives

 The Korean Government agreed to ongoing

consultations to begin in spring 1999.

 The Agreement also set out general objectives

to substantially increase market access for

foreign motor vehicles in Korea and to establish

conditions so that the Korean motor vehicle

sector operates according to market principles.

Tax and tariff reduction was a major sticking point

in the negotiations. A Korean official noted that under

the International Monetary Fund (IMF) program

addressing Korea’s international finance problems,

Korea had little flexibility to reduce taxes, explaining

that auto–related taxes represent roughly 17 percent of

total Korean national government tax revenues.226

Other Issues

Taxes on Distilled Spirits

On July 31, 1998, a WTO dispute–settlement panel

found that Korean taxes on distilled spirits violate

Korea’s WTO obligations concerning discriminatory

taxes. The case was taken to the WTO in 1997 by the

United States and the European Union. The dispute

settlement panel report supports the U.S. challenge to

two Korean laws that apply higher taxes to U.S.

distilled spirits exports than to Korea’s domestically

produced distilled spirit, soju. Soju is a clear liquor

distilled from starch (such as potatoes or grain) and

sugar and has been compared to vodka. The panel

found that these taxes violate Article III:2 of the

General Agreement on Tariffs and Trade because they

afford protection to domestic production of soju.

Korea’s taxation of alcoholic beverages is based on

a two–tiered taxation regime. First, under a general

liquor tax law, Korea imposes an ad valorem tax of 100

percent on whiskey and brandy and 80 percent on

vodka, rum, and gin. Taxes of 35 percent and 50

percent are applied to “diluted” and “distilled” soju,

respectively. Second, under an education tax law, there

is an additional tax that is a function of the applied

liquor tax rate. Liquors having a liquor tax rate of 80

percent or higher are assessed an education tax at 30

percent of the liquor tax imposed. Those having a

liquor tax rate of less than 80 percent are assessed an

education tax at 10 percent of the liquor tax

imposed.227

The USTR stated that the decision “should have

constructive market–opening results for U.S. exports of

distilled spirits.”228

226 U.S. Department of State telegram, “USTR Korea

Director Latimer’s Meetings at MOFAT and Ministry of

Industry,” message reference No. 1976, prepared by U.S.

Embassy, Seoul, Apr. 7, 1998.

227 USTR, “United States Wins WTO Case on Korean

Liquor Taxes,” press release No. 98–73, Aug. 5, 1998; and

WTO, “Korea – Taxes on Alcoholic Beverages: Report of

the Panel,” WT/DS75/R and WT/DS84/R, Sept. 17, 1998.

228 In January 1999, the Appellate Body of the WTO

affirmed the report of the dispute–settlement panel. USTR,

“WTO Appellate Body Confirms U.S. Win in Korean Liquor

Taxes Case,” press release No. 99–05, Jan. 18, 1999.
81

Bilateral Investment Treaty

Negotiations

When Korean President Kim Dae–jung met with

President Clinton on June 9, 1998, he proposed that the

United States and Korea negotiate a bilateral

investment treaty (BIT). Under a BIT, Korea would be

obligated to liberalize its investment regime and

establish certain guarantees for direct investments by

U.S. companies. Initial talks were held in July and

October, but numerous issues must be resolved before

an agreement can be reached.229

229 U.S. Department of State telegram, “U.S.–Korea

BIT: Guidance on Answering Queries,” message reference

No. 110941, prepared by U.S. Department of State,

Washington, DC, June 19, 1998, and U.S. Department of

State telegram, “U.S. Korea BIT: October 1998 Talks–Major

Hurdles,” message reference No. 537, prepared by U.S.

Embassy, Seoul, Jan. 26, 1999.

83

CHAPTER 5

Administration of U.S. Trade Laws

and Regulations

This chapter surveys activities related to the administration of U.S. trade laws during 1998. It covers

(1) the import relief laws; (2) the unfair trade laws; and

(3) certain other trade provisions, including the U.S.

Generalized System of Preferences (GSP), the Caribbean Basin Economic Recovery Act (CBERA), the

Andean Trade Preference Act (ATPA), section 232 of

the Trade Expansion Act of 1962 (impairment of national security), the Agricultural Adjustment Act (interference with programs of the U.S. Department of

Agriculture); (4) programs affecting textile and apparel

imports; and (5) 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 Uruguay Round

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 and sections 301-304 of

the North American Free-Trade Agreement (NAFTA)

Implementation Act.3 The trade adjustment assistance

provisions are set forth starting with section 221 of the

Trade Act of 1974.4

Safeguard Actions

During 1998, the U.S. International Trade Commission (Commission) completed one safeguard investigation, initiated one new investigation, and had pending at year-end one petition, all under the U.S. global

safeguard law. At the end of 1998, the United States

had one global safeguard measure in place, on imports

of wheat gluten. A global safeguard measure on

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

2 19 U.S.C. 2436.

3 19 U.S.C. 3351 et seq.

4 19 U.S.C. 2271 et seq.

imports of broom corn brooms, imposed in 1996, was

terminated in late 1998, almost a year earlier than

scheduled.

The Commission made an affirmative injury determination in the one completed safeguard investigation,

which involved imports of wheat gluten. In its report to

the President in March 1998, the Commission recommended that the President impose a quota, for a 4-year

period, on imports of wheat gluten.5 Following receipt

of the Commission’s report, the President in May 1998

imposed a quota on imports of wheat gluten for a period of 3 years and 1 day.6 In October 1998, the Commission instituted an investigation with respect to imports of lamb meat on the basis of a petition filed by

domestic producers. The petitioners requested relief in

the form of a tariff-rate quota on imports of lamb meat.

The investigation was pending at year-end.7 On December 30, 1998, the Commission received a petition

filed by domestic producers of certain steel wire rod.

The petition was pending at year-end 1998.8

The one U.S. safeguard measure in effect at the

beginning of 1998, involving higher tariffs on imports

of broom corn brooms, was terminated early by the

5 Inv. No. TA–201–67, Wheat Gluten, USITC Publication 3088 (March 1998).

6 Proclamation 7103, May 30, 1998, published in the

Federal Register of June 3, 1998 (63 FR 30359). The quota

wasallocated on a country basis, with shares allocated to

Australia, the European Community, and “other countries.”

7 Inv. No. TA–201–68, Lamb Meat. The Commission

made an affirmative injury determination and recommended

relief in the form of a tariff–rate quota at a level less than

that proposed by petitioners. The Commission sent its report

to the President on April 5, 1999. The President has 60 days

from when he receives the report to decide what, if any, action to take. As of the date of publication of this report, the

matter was still pending before the President.

8 The Commission instituted the requested investigation

effective January 12, 1999, following receipt of an amendment to the petition. In May 1999, the Commission made its

determination in the injury phase of the investigation and

was equally divided 3-3 in its determination. As a result, the

Commission proceeded to the remedy phase of its investigation, and was scheduled to report its determination and any

remedy recommendations to the President by July 12, 1999.

U.S. law provides specifically for situations in which the

USITC Commissioners are equally divided in their injury
84

President on December 3, 1998. The measure was terminated on the basis of a finding by the President that

the industry had “not made adequate efforts to make a

positive adjustment to import competition.”9 The President’s action followed receipt of a report that he had

requested from the Commission under section 332(g)

of the Tariff Act of 1930 on developments with respect

to the domestic broom corn broom industry since November 28, 1996, including the progress and specific

efforts made by workers and firms in the industry to

make a positive adjustment to import competition.10

Adjustment Assistance

The Trade Adjustment Assistance (TAA) program,

set forth starting with section 221 of the Trade Act of

1974, authorizes the Secretaries of Commerce and Labor to provide trade adjustment assistance to firms and

workers, respectively, who are adversely affected by

increased imports. Initially authorized under the Trade

Expansion Act of 1962, the current program is scheduled to expire on June 30, 1999. In 1993, a new subchapter was added to the TAA provisions in the Trade

Act 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.11

The TAA system of readjustment allowances to individual workers is administered by the U.S. Department of Labor through its Employment and Training

Administration (ETA) 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 Department of Commerce-sponsored

programs is designed to restore the economic viability

of U.S. industries adversely affected by international

import competition.12

8—Continued

phase determination: the President may consider the determination of either group of Commissioners as the determination of the Commission. If the President chooses the determination of the Commissioners voting in the affirmative, the

President must then address the question of remedy. Under

U.S. law, the President makes the final decision on remedy.

He has 60 days in which to make his decision after receiving

the Commission’s report.

9 Proclamation 7154, Dec. 3, 1998. The measure was

originally scheduled to expire on Nov. 27, 1999.

10 Inv. No. 332–394, Broom Corn Brooms: Efforts of

Workers and Firms in the Industry to Make a Positive Adjustment to Import Competition, USITC Publication. 3122

(Aug. 1998).

11 Sec. 250 of the Trade Act of 1974 (19 U.S.C. 2331),

as augmented by sec. 502 of the NAFTA Implementation

Act.

12 Sections 251 through 264 of the TAA.

Assistance to Workers

The Department of Labor (DOL) instituted 1,400

investigations during fiscal year (FY) 1998 (October 1,

1997, through September 30, 1998) on the basis of

petitions filed for trade adjustment assistance (TAA).

Petitioners for TAA assistance represented a broad

spectrum of manufacturing industries. The FY 1998

figure represents a slight increase from the 1,318 TAA

petitions instituted in FY 1997. The results of the TAA

investigations completed in FY 1998, 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) in FY 1998 decreased slightly to

1,359 cases from 1,373 in FY 1997. As shown above,

there were a total of 96,868 workers fully certified in

FY 1998, a 12.8 percent decrease from the number fully certified in FY 1997. 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

1998 decreased to $151.0 million, a 19.5 percent decrease from the $187.6 million figure in FY 1997. In

addition, there was a sharp decrease in the number of

workers applying for such benefits (from 31,606 new

recipients in FY 1997 to 20,474 recipients in FY 1998).

The DOL also provided training, job search, and relocation allowances preliminarily valued at $96.7 million in FY 1998, a 13.6 percent increase from the $85.1

million allocated during FY 1997. However, the numbers of workers utilizing these services decreased from

FY 1997 to FY 1998.

NAFTA Transitional Assistance to

Workers

The NAFTA Implementation Act13 established the

Transitional Adjustment Assistance program

(NAFTA-TAA). That program, which began operation

13 NAFTA Implementation Act, Title V, NAFTA Transitional Adjustment Assistance and Other Provisions, Public

Law No. 103–182, 107 Stat. 2057, sec. 501–507 (Dec. 8,

1993).
85

Table 5-1

Results of petitions filed under the Trade Adjustment Assistance program, FY 1998 and FY 1997

Number of investigations

or petitions— Number of workers—

Item FY 1998 FY 1997 FY 1998 FY 1997

Completed certifications 856 877 96,868 109,253 . . . . . . . . . . . . Partial certifications 1 1 192 60 . . . . . . . . . . . . . . . . Petitions denied 425 430 49,303 38,696 . . . . . . . . . . . . . . . . . . . 

Petitions terminated or withdrawn 77 65 1,715 3,059 . . . . 

Total 1,359 1,373 148,078 151,068 . . . . . . . . . . . . . . . . . . . . . . . . . 

Source: Preliminary (as of January 1999) data maintained by the U.S. Department of Labor, Employment and Training Administration, Office of Trade Adjustment Assistance.

Table 5-2

Benefits and services provided under the Trade Adjustment Assistance program, FY 1998 and 

FY 1997

Estimated number of participants—

Item FY 1998 FY 1997

Trade readjustment allowance benefits

Number of new recipients 20,474 31,606 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Total expenditures (in millions of dollars) 151.0 187.6 . . . . . . . . . . . . . . . . . 

Training, job search, and relocation services

Number entering training 18,238 22,770 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Number receiving a job search allowance 220 448 . . . . . . . . . . . . . . . . . . . . 

Number receiving a relocation allowance 374 669 . . . . . . . . . . . . . . . . . . . . 

Total allocations to States (in millions of dollars) 96.7 85.1 . . . . . . . . . . 

Source: Preliminary (as of January 1999) data maintained by the U.S. Department of Labor, Employment and Training Administration, Office of Trade Adjustment Assistance.

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 countries14. Data for FY 1998 from

the DOL indicate that 809 petitions were filed for assistance under the NAFTA-TAA program compared to

784 such filings in FY 1997. Petition activity under the

program in FY 1998 and FY 1997 is summarized in

table 5-3. As shown, there were 445 completed certifications in FY 1998, covering 53,301 workers.

Preliminary FY 1998 figures show that there were

2,545 new recipients of NAFTA-TAA, an increase over

14 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.

the 2,242 workers that entered the program in FY 1997

(table 5-4). In addition, there was a sharp increase in

the number of workers entering training (4,021 workers in FY 1998, compared with 2,910 workers in FY

1997). The DOL also provided direct benefits to workers that increased from $13.1 million in FY 1997 to

$14.0 million in FY 1998, and expenditures for training, job search, and relocation services increased from

$27.6 million in FY 1997 to $29.0 million in FY 1998.

Assistance to Firms and

Industries15

The U.S. Department of Commerce’s Economic

Development Administration (EDA) certified 167

15 Information obtained from the Planning and Development Assistance Division, Economic Development Administration, U.S. Department of Commerce. The trade adjustment

assistance program was extended through June 30, 1999,

under the Omnibus Appropriations Bill for FY 1999.
86

Table 5-3

Results of petitions filed under the NAFTA Transitional Adjustment Assistance program, FY 1998

and FY 1997

Estimated number of investigations Estimated number

or petitions— of workers—

Item FY 1998 FY 1997 FY 1998 FY 1997

Petitions filed 809 784 87,322 88,606 . . . . . . . . . . . . . . . . . . . . . Worker groups certified 445 429 53,301 55,975 . . . . . . . . . . . . . Petitions denied 350 293 25,067 29,243 . . . . . . . . . . . . . . . . . . . 

Petitions terminated 41 20 NA NA . . . . . . . . . . . . . . . 

Source: Preliminary (as of January 1999) data maintained by the U.S. Department of Labor, Employment and Training Administration, Office of Trade Adjustment Assistance.

Table 5-4

Benefits and services provided under the NAFTA Trade Adjustment Assistance program, FY 1998

and FY 1997

Estimated number of participants—

Item FY 1998 FY 1997

Trade readjustment allowance benefits

Number of new recipients 2,545 2,242 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Total expenditures (in millions of dollars) 14.0 13.1 . . . . . . . . . . . . . . . . . 

Training, job search, and relocation services

Number entering training 4,021 2,910 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Number receiving a job search allowance 39 16 . . . . . . . . . . . . . . . . . . . Number receiving a relocation allowance 169 66 . . . . . . . . . . . . . . . . . . . . 

Total allocations to States (in millions of dollars) 29.0 27.6 . . . . . . . . . . 

Source: Preliminary (as of January 1999) data maintained by the U.S. Department of Labor, Employment and Training Administration, Office of Trade Adjustment Assistance.

firms as eligible to apply for trade adjustment assistance during FY 1998. This figure represents a slight

increase from the 159 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 may apply for technical assistance to develop and

implement its economic recovery strategy.

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 TAACs’ funding for

technical services to firms adversely affected by international import competition was $9.5 million during

FY 1998, a $1.0 million increase over the amount

awarded in FY 1997.

In addition to trade adjustment assistance for firms,

the EDA also provided $1.5 million in FY 1998 in defense conversion funding to the TAACs, a slight decrease from the $1.6 million provided in FY 1997.

These expenditures assist trade-injured firms in areas

that have also experienced economic dislocations from

defense expenditure cutbacks.
87

Laws Against Unfair

Trade Practices

Several actions were taken in 1998 pursuant to

U.S. laws against unfair trade practices. The U.S. Department of Commerce (Commerce) issued nine new

antidumping orders during 1998, following completion

of investigations by Commerce and the Commission.

Commerce entered into no new suspension agreements.

Commerce issued one new countervailing duty order in

1998, following completion of investigations by Commerce and the Commission. During 1998, the Commission completed 15 investigations under section 337 of

the Tariff Act of 1930 involving allegations of patent,

trademark, or copyright infringement or other unfair

methods of competition. The Commission did not issue

any exclusion orders prohibiting the importation of

merchandise. One limited exclusion order and one

cease-and-desist order became final without Presidential action (both had been issued in 1997). Lastly, 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, as amended

(the Trade Act), is the principal U.S. statute for addressing foreign unfair practices affecting U.S. exports of

goods or services. Section 301 may be used to enforce

U.S. rights under bilateral and multilateral trade agreements and may also 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 consultations do not result in a settlement and

the investigation involves a trade agreement, section

303 of the Trade Act requires the USTR to use the

dispute settlement procedures that are available under

the 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 1998, the USTR initiated two new section 301

investigations. Further developments occurred in four

investigations initiated prior to 1998. Table 5-5 summarizes USTR activities on section 301 investigations

during 1998.16

Super 301

The “Super 301” provisions of the Omnibus Trade

and Competitiveness Act of 1988 were reinstituted via

Executive Order by President Clinton in 199417 and

later extended through calendar year 1997.18 In 1998,

the USTR did not issue a Super 301 report to the Congress, because of the expiration of the Executive Order.19 The USTR terminated one outstanding investigation regarding Korean barriers to auto imports as a result of a bilateral agreement.

Special 301

Under “Special 301” provisions,20 the USTR must

identify those countries that deny adequate and effective protection for intellectual property rights (IPR) or

deny fair and equitable market access for persons who

rely on intellectual property protection. Countries that

have the most onerous or egregious acts, policies, or

practices and whose acts, policies, or practices have the

greatest adverse impact (actual or potential) on the

relevant U.S. products must be designated as “priority

foreign countries.” Priority foreign countries are potentially subject to an investigation under the Section

301 provisions of the Trade Act.

16 Information contained in this table was compiled

from USTR, Report to Congress on Section 301 Developments Required by Section 309(a)(3) of the Trade Act of

1974.

17 On March 3, 1994, the President signed Executive

Order 12901 reinstituting Super 301 for calendar years 1994

and 1995.

18 On September 27, 1995, the President amended

Executive Order 1290,1 to extend it to calendar years 1996

and 1997.

19 The USTR announced the President’s intent to reinstitute and modify “Super 301” in 1999. See USTR, “USTR

Barshefsky Announces Super 301 and Title VII Executive

Order,” press release 99–10, Jan. 26, 1999. The modified

provisions require the USTR to review U.S. trade expansion

priorities and identify those priority foreign country practices, the elimination of which is likely to have the most significant potential to increase U.S. exports, and to report to the

Senate Finance Committee and the House Ways and Means

Committee on any such practices. The report is due by April

30, closer to the submission of the annual National Trade

Estimate Report. (Executive Order 13116 was issued on

March 31, 1999.)

20 Special 301 provisions are pursuant to Section 182 of

the Trade Act of 1974, as amended by the Omnibus Trade

and Competitiveness Act of 1988 and the Uruguay Round

Agreement Act of 1994.
88

Table 5-5

Summary of activity on section 301 investigations on which actions were taken during 1998

Docket No. Summary and actions occurring during course of investigation

Petitions filed or investigations self-initiated in 1998

Docket No. 301-118 Mexican Practices Affecting High Fructose Corn Syrup (HFCS), petition filed by

the Corn Refiners Association, Inc. (April 1998), USTR invites public comments.

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 HFCS by encouraging and supporting an agreement between Mexican

sugar growers and bottlers to limit use of HFCS.

On May 15, 1998, the United States Trade Representative (USTR) initiated a Section

301 investigation with respect to certain acts, policies and practices of the Government

of Mexico that affect access to the Mexican market for HFCS. The USTR invited written

comments from the public on the matters being investigated and the determinations to

be made at the end of that investigation. Comments were filed on or before noon on

Friday, June 19, 1998. (63 FR 28544 of 05/26/98). 

For further background, see Chapter 4 of this report.

Docket No. 301-117 Intellectual Property Laws and Practices of the Government of Paraguay,

self-initiated by USTR (Feb. 1998), MOU signed (Nov. 1998) and GSP review of

Paraguay’s intellectual property practices is terminated.

On Feb. 17, 1998, the USTR self-initiated an investigation under section 302(b)(2)(A) of

the Trade Act with respect to certain acts, policies and practices of the Government of

Paraguay that deny adequate and effective protection of intellectual property rights.

The USTR invited public comments on the matters being investigated and requested

consultations with the Government of Paraguay. (63 FR 9292 of 2/24/98).

The USTR determined pursuant to section 304(a)(1)(A)(i) of the Trade Act that acts,

policies, and practices of the Government of Paraguay with respect to the protection and

enforcement of intellectual property rights were unreasonable and discriminatory and

constituteda burden or restriction on U.S. commerce. On November 17, 1998, the

United States and Paraguay signed a Memorandum of Understanding (MOU) in which

the government of Paraguay committed to take a number of near-term and longer-term

actions to address the practices that were the subject of this investigation. In light of the

MOU signed by Paraguay, the USTR has determined to not take further action at this

time under section 301(b)(2) of the Trade Act and the USTR will monitor Paraguay’s

implementation of the MOU. The GSP review of Paraguay’s intellectual property

practices has also been terminated. (63 FR 64982). 

Table continued on next page
89

Table 5-5—Continued

Summary of activity on section 301 investigations on which actions were taken during 1998

Docket No. Summary and actions occurring during course of investigation

Petitions filed or investigations self-initiated in 1998—Continued

Docket No. 301-116 Honduran Protection of Intellectual Property Rights, self-initiated by USTR (Oct.

1997), USTR suspends preferential treatment accorded under the GSP and CBI

programs to certain fruit and vegetable products of Honduras (April 1998).

On October 31, 1997, the USTR initiated an investigation with respect to certain acts,

policies, and practices of the Government of Honduras with respect to the protection of

intellectual property rights, and proposed to determine that these acts, policies, and

practices are actionable under section 301(b) and that the appropriate response is a

partial suspension of tariff preferences.

The USTR invited public comments on the matters being investigated and participation

in a public hearing concerning the proposed determinations and action (62 FR 60299 of

11/7/97). On March 16, 1998, the USTR determined pursuant to sections 304(a)(1)(A)

and 301(b) of the Trade Act that, based on the failure of the Government of Honduras to

provide adequate and effective protection of intellectual property rights, certain acts,

policies, and practices of Honduras with respect to the protection of intellectual property

rights are unreasonable and burden or restrict United States commerce. Pursuant to

sections 304(a)(1)(B), 301(b) and 301(c) of the Trade Act, the USTR also determined

that the appropriate action to obtain the elimination of such acts, policies, and practices

is to suspend, effective April 20, 1998, the preferential treatment accorded under the

Generalized System of Preferences (GSP) and the Caribbean Basin Initiative (CBI)

programs to certain fruit and vegetable products of Honduras. (63 FR 16607 of 4/3/98).

The suspended trade preferences were restored on June 30, 1998.

Docket No. 301-110 Brazilian Practices Regarding Trade and Investment in the Auto Sector,

self-initiated by Acting USTR (Oct. 1996), agreement reached between the United

States and Brazil (March 1998) and investigation terminated (March 1998).

On October 11, 1996, the Acting USTR self-initiated an investigation under section

302(b)(1) of the Trade Act of 1974, with respect to certain acts, policies, and practices of

the Government of Brazil concerning the grant of tariff-reduction benefits contingent on

satisfying certain export performance and domestic content requirements.

In August 1996, the USTR sought consultations with Brazil regarding its auto regime.

Subsequently, Brazil agreed to enter into intensive talks with the United States to

discuss the removal of the discriminatory impact of the Brazilian practices on U.S.

exports. Pending the successful outcome of these talks, the USTR decided, pursuant to

section 303(b)(1)(A) of the Trade Act to delay for up to 90 days requesting WTO dispute

settlement procedures (required under section 303(a) of the Trade Act) for the purpose

of ensuring an adequate basis for such consultations. The USTR also invited written

comments on the matters being investigated (61 FR 54485 of 10/18/96). On January

10, 1997, the United States requested formal consultations pursuant to Articles 1 and 4

of the WTO, Understanding on Rules and Procedures Governing the Settlement of

Disputes (DSU), Article XXIII:1 of the GATT 1994, Article 8 of the TRIMs Agreement,

and Articles 4.1, 7.1 and 30 of the SCM Agreement. On March 16, 1998, the United

States and Brazil reached an agreement concerning trade measures in the automotive

sector in which Brazil committed not to extend its automative trade-related measures

beyond December 31, 1999. On the basis of the agreement entered into to provide a

satisfactory resolution of the matter under investigation, the USTR terminated the

investigation on March 16, 1998, and will monitor Brazil’s implementation of the

agreement.

Table continued on next page
90

Table 5-5—Continued

Summary of activity on section 301 investigations on which actions were taken during 1998

Docket No. Summary and actions occurring during course of investigation

Petitions filed or investigations self-initiated in 1998—Continued

Docket No. 106 India’s Practices Regarding Patent Protection for Pharmaceuticals and Agricultural

Chemicals, self-initiated by USTR (July 1996), India states its intention to comply with its

WTO obligations (Feb. 1998) and that it would amend its law (April 1998) and USTR

terminates its investigation (May 1998). 

On July 2, 1996, USTR self-initiated an investigation under section 302(b)(1) of the

Trade Act with respect to certain acts, policies, and practices of the Government of India

that may result in the denial of patents and exclusive marketing rights to U.S. individuals

and firms involved in the development of innovative pharmaceutical and agricultural

chemical products. 

The USTR invited public comment on the matters being investigated and requested

consultation with the Government of India pursuant to Article XXII of GATT 1994, and

Article 4 of the WTO DSU and Article 64 of the TRIPs Agreement (61 FR 35857 of

7/8/96). Subsequently, a WTO dispute settlement panel was formed to address this

dispute and, in a report circulated September 5, 1997, found in favor of the United

States. The panel found that India must establish a TRIPs-consistent mailbox system

and provide exclusive marketing rights, and agreed with the U.S. arguments that India

had not yet done so. India appealed this decision to the WTO’s Appellate Body on

October 15, 1997. On December 19, 1997, the WTO Appellate Body confirmed all the

major panel findings against India. On February 13, 1998, India stated its intention to

comply with its WTO obligations with respect to this matter and on April 22, 1998, stated

that it would amend its law no later than April 19, 1999.

On May 8, 1998, the USTR determined that certain acts, policies and practices of India

violate, or otherwise deny, benefits to which the United States is entitled under the

TRIPs Agreement. However, in light of India’s commitment to implement its WTO

obligations, pursuant to section 301(a)(2)(B)(i) of the Trade Act, the USTR will not take

action at this time under section 301(a) of the Trade Act and has terminated this

investigation. Furthermore, pursuant to section 306 of the Trade Act, the USTR will

monitor India’s implementation of the WTO reports and will take action under section

301(a) of the Trade Act if India does not come into compliance. (63 FR 29053 of

05/27/98).

Docket No. 301-100 European Communities’ Banana Import Regime, self-initiated by USTR, the EC

states its intention to implement all the rulings and recommendations in the WTO

reports (Dec. 1997) and the USTR terminates its investigation (Feb. 1998).

Pursuant to section 302(b)(1) of the Trade Act, the USTR self-initiated a new investigation

concerning the EC’s acts, policies, and practices relating to the importation, sale and

distribution of bananas. (See 301-94).

The USTR invited public comment on the acts, policies, and practices of the EC and

pursuant to section 303(a) of the Trade Act, requested consultations with the EC pursuant

to the WTO’s DSU (60 FR 52027 of 10/4/95).

On May 8, 1996, the DSB established a panel in response to the April 11, 1996, panel

request filed jointly and severally by Ecuador, Guatemala, Honduras, Mexico, and the

United States. A WTO dispute settlement panel was subsequently formed to address this

dispute, and, in a report circulated in May 1997, found in favor of the United States. The

findings in the report were affirmed by the WTO Appellate Body on September 9, 1997,

and adopted by the WTO DSB on September 25, 1997.

Table continued on next page
91

Table 5-5—Continued

Summary of activity on section 301 investigations on which actions were taken during 1998

Docket No. Summary and actions occurring during course of investigation

Petitions filed or investigations self-initiated in 1998—Continued

Docket No. 301-100 Continued

On December 17, 1997, the EC stated its intention to comply with its international

obligations and to implement all the rulings and recommendations in the WTO reports by

January 1, 1999. In light of the foregoing, the USTR did not take action under section

301 of the Trade Act and terminated its investigation on February 10, 1998.

For further background, see Chapter 4 of this report.

Source: Compiled by staff of the U.S. International Trade Commission from database (dated Jan. 20, 1999) 

maintained by the USTR.

The USTR has created a “Priority Watch List” and

a “Watch List” under Special 301 provisions. Placement of a trading partner on either of these lists indicates that particular problems exist in that country with

respect to IPR protection or enforcement or market access for persons relying on intellectual property. Countries placed on the Priority Watch List are the focus of

increased bilateral attention concerning the problem

areas.

On May 1, 1998, the USTR identified 48 trading

partners that deny adequate and effective protection of

intellectual property or deny fair and equitable market

access to U.S. persons that rely upon intellectual property protection. Of the 48, 15 were placed on the Priority Watch List and 32 on the Watch List. Also announced was the monitoring of China’s compliance

with the 1996 bilateral intellectual property agreement

under section 306 of the Trade Act. USTR also noted

growing concern about an additional 17 countries not

named to either list. Finally, the USTR used the Special

301 announcement to report its intention to bring WTO

dispute-settlement cases against Greece and the European Union.21

In May, the USTR initiated a review of the protection of intellectual property in New Zealand.22 In December, Hong Kong, Columbia, Jordan, and Vietnam

were reviewed.23 Paraguay remained a Priority Foreign

Country because of “alarming levels of piracy and

counterfeiting and failure to implement adequate and

effective intellectual property laws,” but the USTR

21 USTR, “USTR Announces Results of Special 301

Annual Review,” press release 98–44, May 1, 1998.

22 USTR, “USTR Barshefsky Announces Initiation of

Special 301 ‘Out–of–Cycle’ Review of New Zealand,” press

release 98–52, May 27, 1998.

23 USTR, 1998 Annual Report of the President of the

United States on the Trade Agreeements Program, p.255.

determined not to take further action because of a Memoradum of Understanding (MOU) with Paraguay.24

Monitoring of implementation of the MOU will continue.25 Bulgaria was moved from the Priority Watch List

to the Watch List, and Brazil was removed from all

lists.

Antidumping Investigations

The present antidumping law is contained in Title

VII of the Tariff Act of 1930, as amended.26 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)

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.27 The antidumping duty is designed to equal

24 Ibid., pp. 255–56.

25 Ibid., p. 256.

26 19 U.S.C. 1673 et seq.

27 19 U.S.C. 1677b; 19 CFR part 353, subpart D.
92

the difference between the U.S. price and the foreignmarket 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 no request for

annual reviews is received by Commerce. 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.28 In 1998, the Commission completed 34 preliminary and 15 final antidumping injury investigations.29 Antidumping duties

were imposed as a result of affirmative Commission

and Commerce determinations in 9 of the 15 final investigations on products from seven different countries. The antidumping orders put into effect in 1998

are shown in the following tabulation:

Country Item

Chile Certain preserved mushrooms

Fresh Atlantic salmon

Italy Stainless steel wire rod

Japan Stainless steel wire rod

Korea Stainless steel wire rod

Spain Stainless steel wire rod

Sweden Stainless steel wire rod

Taiwan Stainless steel wire rod

Static random access memory 

semiconductors

Details of all antidumping actions and orders, including suspension agreements,30 in effect in 1998, are presented in tables A-22 and A-23. Table 5-6

28 Upon the filing of a petition, the Commission has 45

days to make a preliminary determination of whether there is

a reasonable indication of material injury or threat of material injury to an industry or of a material retardation of the

establishment of an industry by reason of the allegedly

dumped imports. If this determination is affirmative, Commerce continues its investigation and makes preliminary and

final determinations concerning whether the imported article

is being, or is likely to be, sold at LTFV. If Commerce reaches a final affirmative dumping determination, the Commission has 45 days thereafter to make its final injury determination. If the Commission’s preliminary determination is

negative, by contrast, both the Commission and Commerce

terminate investigations.

29 The figures set forth in this section do not include

court–remanded investigations on which new votes were

taken or investigations terminated before a determination

was reached.

30 An antidumping investigation may be suspended

through an agreement before a final determination by the

U.S. Department of Commerce. An investigation may be

suspended if exporters accounting for substantially all of the

imports of the merchandise under investigation agree either

to eliminate the dumping or to cease exports of the merchandise to the United States within six months. In extraordinary

circumstances, an investigation may be suspended if exporters agree to revise prices to completely eliminate the injurious effect of the imports. A suspended investigation is reinstituted should LTFV sales recur. See 19 U.S.C. 1673(c).

summarizes the number of antidumping investigations

during 1996-98.31

Countervailing Duty

Investigations

The U.S. countervailing duty (CVD) law is set

forth in Title VII of the Tariff Act of 1930, as

amended. It provides for the levying of special additional duties to offset foreign subsidies on products imported into the United States.32 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.

One new countervailing duty order was imposed in

1998 as a result of investigations involving both Commerce and the Commission.33 In 1998, the Commission completed 11 preliminary and one final injury investigations.34 Details of countervailing duty actions

and outstanding orders, including suspension agreements35 in effect in 1998, are presented in tables A-24

31 When a petition alleges dumping (or subsidies) with

respect to more than one like product and/or by more than

one country, separate investigations generally are instituted

for imports of each product from each country and each such

investigation may be given a separate number. For this reason, the numbers of investigations instituted and determinations made may exceed the number of petitions filed. Moreover, an investigation based on a petition filed in one calendar year may not be completed until the next year. Thus, the

number of petitions filed may not correspond closely to the

number of determinations made. Also, the numbers set forth

in this tabulation do not include determinations made following court–ordered remands. 32 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. 19 U.S.C. 1677(5),and

1677–1(a).

33 This resulted in a CVD order on stainless steel wire

rod from Italy. 34 The figures set forth in this section do not include

court–remanded cases on which new votes were taken or

investigations terminated before a determination was

reached.

35 A countervailing duty investigation may be suspended through an agreement before a final determination by

Commerce if (1) the subsidizing country or exporters accounting for substantially all of the imports of the merchandise under investigation agree to eliminate the subsidy, to

completely offset the net subsidy, or to cease exports of the

merchandise to the United States within six months or (2)

extraordinary circumstances are present and the government

or exporters described above agree to completely eliminate

the injurious effect of the imports of the merchandise under

investigation. A suspended investigation is reinstituted if

subsidization recurs. 19 U.S.C. 1671(c).
93

and A-25. Table 5-7 summarizes the number of countervailing duty investigations during 1996-98.36

Reviews of Outstanding

Antidumping and

Countervailing Duty Orders

Section 751 of the Tariff Act of 1930 (19 U.S.C.

1675) requires Commerce, if requested, to conduct

annual reviews of outstanding antidumping and

36 Because a petition will sometimes name more than

one product and/or country and because each product and

country named is designated as a separate investigation

when proceedings are formally instituted, the number of

investigations instituted and determinations made generally

exceeds the number of petitions filed.

countervailing duty orders to determine the amount of

any net subsidy or dumping margin and to determine

compliance with suspension agreements. Section 751

also authorizes Commerce and the Commission, as appropriate, to review certain outstanding determinations

and agreements after receiving information or a petition that shows changed circumstances. In these circumstances, the party seeking revocation or modification of an antidumping or countervailing duty order or

suspension agreement has the burden of persuading

Commerce and the Commission that circumstances

have changed sufficiently to warrant review and revocation. Based on either of the reviews above, Commerce may revoke a countervailing duty or antidumping order in whole or in part or terminate or resume a

suspended investigation. The Commission instituted 11

and completed 4 changed circumstances investigations

under section 751 in 1998.

Table 5-6

Results of antidumping duty investigations, 1996-98

Antidumping duty investigations 1996 1997 1998

Petitions filed 20 15 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Preliminary Commission determinations:

Negative 0 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Affirmative (includes partial affirmatives) 17 15 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . Terminated1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 010

Final Commerce determinations:

Negative 0 1 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Affirmative 12 17 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Terminated 0 0 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Suspended 1 1 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final Commission determinations:

Negative 3 2 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Affirmative (includes partial affirmatives) 8 15 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Terminated 1 1 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1 These figures include petitions withdrawn voluntarily by petitioners.

Source: Compiled by staff of the U.S. International Trade Commission.

Table 5-7

Results of countervailing duty investigations, 1996-98

Countervailing duty investigations 1996 1997 1998

Petitions filed 1 6 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Preliminary Commission determinations:

Negative 0 0 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Affirmative (includes partial affirmatives) 1 6 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . Final Commerce determinations:

Negative 0 0 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Affirmative 2 4 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Suspended 0 0 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final Commission determinations:

Negative 0 4 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Affirmative (includes partial affirmatives) 2 0 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Terminated 0 0 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Source: Compiled by staff of the U.S. International Trade Commission.
94

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 5 years after their publication to determine whether revocation of an order

would be likely to lead to continuation or recurrence of

dumping or a countervailable subsidy and material injury.37 Special rules apply to the conduct of sunset reviews of “transition” orders (orders in effect on January 1, 1995, the date on which the WTO Agreement

entered into force with respect to the United States).

During 1998, Commerce and the Commission initiated

40 and terminated 19 antidumping order sunset reviews

and initiated 13 and terminated 2 countervailing duty

order sunset reviews. No transition order may be revoked as a result of such a review before January 1,

2000. Three expedited and five other full reviews were

also pending as of December 31, 1998. Details of antidumping and countervailing order sunset reviews are

presented in tables 5-8 and 5-9.

Section 753 of the Tariff Act of 1930, which was

added to the statute by the Uruguay Round Agreements

Act, requires Commission determinations with respect

to certain countervailing duty orders. To be subject to

section 753, a countervailing duty order must have two

characteristics. First, the order must have been issued

under sections 303 or 701(c) of the Act without a determination of material injury br reason of subject imports. Second, the order must apply to merchandise

from a country that entered the WTO Agreement on

Subsidies and Countervailing Measures after the order

was issued. Additionally, a domestic interested party

must request initiation of the investigation. In a section

753 investigation, the Commission determines whether

a domestic industry is likely to be materially injured by

reason of subsidized imports if the countervailing duty

order is revoked. In 1998 the Commission conducted

one investigation under section 753 concerning extruded rubber thread from Malaysia. It determined that

the domestic industry was not likely to be materially

injured by reason of the subject imports if the order

was revoked.

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. pat37 19 U.S.C. 1675(c).

ent, registered trademark, registered copyright, or registered mask work, for which a domestic industry exists or is in the process of being established.38

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.39 The President may disapprove a Commission order within 60 days of its issuance for “policy

reasons.”

In 1998, all of the complaints filed with the Commission under section 337 alleged infringement of

U.S. patents by imported merchandise. The Commission completed a total of 15 investigations under section 337 in 1998, including two ancillary sanctions proceedings relating to previously concluded investigations. As in recent years, the section 337 caseload in

1998 was highlighted by investigations involving complex technologies, particularly in the computer and

telecommunications fields. Significant among these

were investigations involving electronic “smart” cards,

optical waveguide fibers and multiplexing systems for

telecommunications, CD-ROM and video graphics

controllers, 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,

including recombinantly produced hepatitis B vaccines, photoconductor drums, mass spectrometers used

to analyze the composition of substances, and artificial

sweeteners. Other section 337 investigations active

during 1998 concerned agricultural tractors, rare-earth

magnets used in electronic products, automotive jacks,

disposable cameras, lumbar supports used in automobile seats, and compact multipurpose tools.

38 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 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.

39 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.
Table 5-8

Title VII 5-year reviews active in 1998, conducted under the authority of the Tariff Act of 1930, expedited or full, by 

USITC

Order investigation Country Initiation Commerce Commdate number Product of origin date determination determ

Expedited 5-Year Title VII Revie

Dec. 17, 1973 AA1921-127 Elemental sulfur Canada Aug. 3, 1998 Affirmative Negativ

. . . . . . . . . . . . . . . . . . . . . . 

Oct. 21, 1977 AA1921-167 Pressure-sensitive plastic tape Italy Sept. 1, 1998 Affirmative 1 

. . . . . . . . . 

Dec. 8, 1978 AA1921-188 Prestressed concrete steel wire strand Japan Sept. 1, 1998 Affirmative 1 

. . 

Full 5-Year Title VII Reviews

Apr. 12, 1973 AA1921-111 Roller chain Japan July 6, 1998 Affirmative 1 

. . . . . . . . . . . . . . . . . . . . . . . . . 

June 8, 1973 AA1921-114 Stainless steel plate Sweden Aug. 3, 1998 Affirmative 1 

. . . . . . . . . . . . . . . . . . 

July 10, 1973 AA1921-115 Synthetic methionine Japan Aug. 3, 1998 Affirmative 1 

. . . . . . . . . . . . . . . . . 

Dec. 6, 1973 AA1921-129 Polychloroprene rubber Japan Aug. 3, 1998 Affirmative 1 

. . . . . . . . . . . . . . . 

Feb. 2, 1977 AA1921-162 Melamine Japan Aug. 3, 1998 Affirmative 1 

. . . . . . . . . . . . . . . . . . . . . . . . . . . 

1 In progress.

Source: Compiled by the staff of the U.S. International Trade Commission.
96

Table 5-9

Title VII 5-year reviews, conducted under the authority of the Tariff Act of 1930, either terminated

in 1998 or in the initiation phase as of December 31, 1998, antidumping or countervailing duty orders and findings, by order date

Order Country Initiation

date Product of origin date Status

Antidumping orders and findings

Sept. 13, 1966 Steel jacks Canada July 6, 1998 Terminated . . . . . . . . . . . . . . . . . . . . . . . . 

June 9, 1972 Fish netting of manmade fiber Japan July 6, 1998 Terminated . . . . . . . 

June 14, 1972 Large power transformers France July 6, 1998 Terminated . . . . . . . . . . 

June 14, 1972 Large power transformers Italy July 6, 1998 Terminated . . . . . . . . . . 

June 14, 1972 Large power transformers Japan July 6, 1998 Terminated . . . . . . . . . . 

Nov. 22, 1972 Bicycle speedometers Japan July 6, 1998 Terminated . . . . . . . . . . . . . . 

Mar. 23, 1973 Canned Bartlett pears Australia July 6, 1998 Terminated . . . . . . . . . . . . . . 

Feb. 27, 1974 Racing plates (aluminum

 horseshoes) Canada Aug. 3, 1998 Terminated . . . . . . . . . . . . . . . . . . . . 

Aug. 30, 1976 Acrylic sheet Japan Aug. 3, 1998 Terminated . . . . . . . . . . . . . . . . . . . . . . 

Dec. 22, 1977 Animal glue Germany Sept. 1, 1998 Terminated . . . . . . . . . . . . . . . . . . . . . . . 

Feb. 17, 1978 Railway track maintenance 

equipment Austria Sept. 1, 1998 Terminated . . . . . . . . . . . . . . . . . . . . . . 

May 25, 1978 Impression fabric Japan Sept. 1, 1998 Terminated . . . . . . . . . . . . . . . . . . 

Mar. 21, 1979 Rayon staple fiber Finland Sept. 1, 1998 Terminated . . . . . . . . . . . . . . . . . 

June 13, 1979 Sugar Belgium Oct. 1, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

June 13, 1979 Sugar France Oct. 1, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . . . . . 

June 13, 1979 Sugar Germany Oct. 1, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Apr. 9, 1980 Sugar and syrups Canada Oct. 1, 1998 Pending . . . . . . . . . . . . . . . . . . 

Mar. 10, 1971 Television receivers Japan Oct. 1, 1998 Terminated . . . . . . . . . . . . . . . . 

Apr. 30, 1984 Color television receivers Korea Oct. 1, 1998 Terminated . . . . . . . . . . . 

Apr. 30, 1984 Color television receivers Taiwan Oct. 1, 1998 Terminated . . . . . . . . . . . 

Nov. 6, 1980 Small electric motors Japan Oct. 1, 1998 Terminated . . . . . . . . . . . . . . . 

Jan. 7, 1981 Anhydrous sodium metasilicate France Oct. 1, 1998 Pending . . . . . . 

Apr. 9, 1982 Sorbitol France Oct. 1, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . . . . 

July 20, 1982 High-power microwave amplifiers Japan Oct. 1, 1998 Terminated . . . . 

June 25, 1981 Barium carbonate Germany Oct. 1, 1998 Terminated . . . . . . . . . . . . . . . . . 

Oct. 17, 1984 Barium chloride China Oct. 1, 1998 Pending . . . . . . . . . . . . . . . . . . . 

Sept. 16, 1983 Greige polyester cotton printcloth China Nov. 2, 1998 Pending . . . . 

Nov. 23, 1984 Carbon steel wire rod Argentina Nov. 2, 1998 Pending . . . . . . . . . . . . . . 

Jan. 19, 1984 Potassium permanganate China Nov. 2, 1998 Pending . . . . . . . . . . . 

Jan. 31, 1984 Potassium permanganate Spain Nov. 2, 1998 Pending . . . . . . . . . . . 

Mar. 22, 1984 Chloropicrin China Nov. 2, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . 

May 5, 1986 Iron construction castings Canada Nov. 2, 1998 Pending . . . . . . . . . . . 

May 9, 1986 Iron construction castings Brazil Nov. 2, 1998 Pending . . . . . . . . . . . 

May 9, 1986 Iron construction castings China Nov. 2, 1998 Pending . . . . . . . . . . . 

Mar. 1, 1985 Brass fire protection products Italy Nov. 2, 1998 Pending . . . . . . . 

May 5, 1987 Frozen concentrated orange juice Brazil Dec. 2, 1998 Pending . . . . 

Apr. 18, 1985 Calcium hypochlorite Japan Dec. 2, 1998 Pending . . . . . . . . . . . . . . . 

July 14, 1994 Sebacic acid China Dec. 2, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . 

June 24, 1985 Red raspberries Canada Dec. 2, 1998 Pending . . . . . . . . . . . . . . . . . . . 

Nov. 13, 1985 Barbed wire and barbless wire

strand Argentina Dec. 2, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . . . . 
97

Table 5-9—Continued

Title VII 5-year reviews, conducted under the authority of the Tariff Act of 1930, either terminated

in 1998 or in the initiation phase as of December 31, 1998, antidumping or countervailing duty orders and findings, by order date

Order Country Initiation

date Product of origin date Status

Countervailing duty orders and findings

Mar. 15, 1977 Cotton yarn Brazil Sept. 1, 1998 Terminated . . . . . . . . . . . . . . . . . . . . . . . 

May 15, 1979 Rayon staple fiber Sweden Sept. 1, 1998 Terminated . . . . . . . . . . . . . . . . . 

July 31, 1978 Sugar European Union Oct. 1, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Sept. 27, 1982 Carbon steel wire rod Argentina Nov. 2, 1998 Pending . . . . . . . . . . . . . . 

Nov. 7, 1983 Refrigeration compressors Singapore Nov. 2, 1998 Pending . . . . . . . . . . 

Oct. 16, 1980 Iron castings India Nov. 2, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . 

May 15, 1986 Heavy iron construction castings Brazil Nov. 2, 1998 Pending . . . . . 

Mar. 12, 1985 Textiles Columbia Dec. 2, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . . . . 

Mar. 12, 1985 Textiles Thailand Dec. 2, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . . . . 

Mar. 2, 1983 Frozen concentrated orange juice Brazil Dec. 2, 1998 Pending . . . . 

Mar. 16, 1976 Castor oil products Brazil Dec. 2, 1998 Pending . . . . . . . . . . . . . . . . . 

Aug. 15, 1985 Live swine Canada Dec. 2, 1998 Pending . . . . . . . . . . . . . . . . . . . . . . . . 

Oct. 22, 1985 Agricultural tillage tools Brazil Dec. 2, 1998 Pending . . . . . . . . . . . . . 

Note.—Initiated reviews for which the Commission subsequently determined to conduct an expedited or full review

are not listed in this table. Such reviews are listed in table 5-8.

Source: Compiled by the staff of the U.S. International Trade Commission.

No exclusion orders were issued during 1998. 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

1998, there were 10 section 337 investigations pending

at the Commission, including one formal enforcement

proceeding. Commission activities involving section

337 actions in 1998 are presented in table A-26.

As of December 31, 1998, a total of 47 outstanding

exclusion orders based on violations of section 337

were in effect. Twenty-seven of these orders involved

unexpired patents. Table A-27 lists the investigations

in which these exclusion orders were issued.

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. It has been enhanced to allow duty-free

treatment for certain products when imported only

from countries designated as least-developed beneficiary developing countries. The program is authorized by

Title V of the Trade Act of 1974, as amended (19

U.S.C. 2461 et seq.). The GSP program expired on

June 30, 1998, and was extended retroactively through

June 30, 1999, by legislation (Public Law 105-277)

signed by the President on October 21, 1998. 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.

Countries are designated as “beneficiary developing countries” under the program by the President. The
98

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.40 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.41 The statute also provides for graduation of

countries from the program when they become “highincome” countries and for removal of eligibility of articles, or articles from certain countries, under certain

conditions.

Each year (unless otherwise specified in a Federal

Register notice), the Trade Policy Staff Committee

(TPSC) 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. In October 1998, the

TPSC in a Federal Register notice (63 F.R. 57150) began the annual GSP review for 1998 and terminated the

review (initiated in 1995) of Panama’s protection of

intellectual property rights in light of Panama’s improved enforcement efforts. The USTR requested the

Commission to provide advice concerning possible

modifications to the GSP for the products in the 1998

GSP Annual Review.

In June 1998, the President proclaimed certain

modifications to the GSP implementing decisions

made in regard to the 1997 Annual GSP Review. The

modifications provided for (1) the addition of three regional associations to the GSP, which permits the African countries who are members of any one of the three

regional associations to accumulate their value-added

contributions (on GSP imports), making it easier for

these countries to meet the 35 percent value-added requirement of the GSP rule of origin; (2) the granting of

de minimis waivers for certain articles and restoration

to preferential treatment of certain eligible articles

from certain beneficiary countries; (3) the exclusion of

specified articles from certain beneficiary countries

from eligibility for preferential treatment under GSP

where shipments exceeded the competitive need limits

for calendar year 1997; and (4) the addition of eleven

40 19 U.S.C. 2462(b).

41 19 U.S. C. 2463.

Harmonized Tariff Schedule of the United States

(HTS) subheadings (three with a date of implementation to be announced by the USTR) as articles designated as eligible for duty-free treatment under the GSP,

the removal of one product from GSP, and the granting

of waivers of the competitive need limits for five HTS

subheadings for certain countries.

Several other actions were taken under the GSP in

1998. On January 1, 1998, six beneficiaries (Aruba,

Cayman Islands, Cyprus, Greenland, Macau, and the

Netherlands Antilles) became ineligible for preferential

treatment because of a Presidential determination in

1996 that these beneficiary developing countries had

become high-income countries, as defined by the official statistics of the International Bank for Reconstruction and Development. In May 1997, the TPSC had

announced, in response to a petition filed by the Meat

Industry Trade Policy Council alleging that the Philippines was not respecting commitments that it made

during the Uruguay Round of multilateral trade negotiations, that the TPSC would conduct a review to determine whether the Philippines continues to qualify for

benefits under GSP. In February 1998, following the

conclusion of successful negotiations with the Philippines that would result in the reform of restrictive tariff

rate quotas and licensing practices for pork and poultry

meat, the USTR terminated the review. In April 1998,

the USTR suspended the preferential treatment accorded to certain products from Honduras under the

GSP and the Caribbean Basin Initiative (CBI) based on

a determination of the failure of Honduras to provide

adequate and effective protection of intellectual property rights. In June 1998, the USTR terminated the suspension in view of the Government of Honduras measures to combat piracy and to protect intellectual property rights; at the same time, USTR restored certain

products from Thailand to eligibility for preferential

treatment under the GSP. Further, the USTR terminated

GSP reviews of Panama’s and Paraguay’s intellectual

property practices because of their improved enforcement of intellectual property rights. Lastly, the TPSC

initiated reviews to consider the designation of Georgia, Eritrea, and Gabon as beneficiary developing

countries under the GSP.

There were $16.3 billion in duty-free imports entered under the GSP program in 1998,42 accounting for

more than 13.5 percent of total U.S. imports from GSP

42 As discussed above, the U.S. GSP program expired

on June 30, 1998, and was extended retroactively through

June 30, 1999, by legislation signed by the President on October 21, 1998. Because of the lapse of GSP benefits, articles

otherwise eligible for GSP duty–free entry were subject to

ordinary MFN duties during the period of GSP lapse unless

another valid preferential tariff benefit, such as that provided

by the Caribbean Basin Economic Recovery Act or the
99

beneficiaries and 1.8 percent of total U.S. imports

(table 5-10). Thailand was the leading GSP beneficiary

in 1998, followed by Brazil, Indonesia, Angola, and

India (table 5-11). Apendix table A-28 shows the top

20 GSP products or product categories in 1998, and

table A-29 shows the overall sectoral distribution of

GSP benefits.

42—Continued

Andean Trade Preference Act (discussed below), was

claimed and accorded. Duties paid on articles otherwise eligible for GSP duty–free entry during the period of GSP lapse

were eligible to be refunded once the program again became

operative. Procedures for such refunds were announced in a

notice issued by the U.S. Customs Service, “Renewal of the

Generalized System of Preferences Program,” 63 F.R.

67169.

Caribbean Basin Economic

Recovery Act

Eligible imports from 24 Caribbean Basin countries entered the United States free of duty or at reduced duties under the Caribbean Basin Economic Recovery Act (CBERA) during 1998.43 CBERA has been

operative since January 1, 1984, and, as amended, the

Act currently has no statutory expiration date.44

43 The 24 countries designated for CBERA benefits are

listed in table A–31.

44 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.

Table 5-10

U.S. imports for consumption1 from GSP beneficiaries and the world, 1998

(Million dollars)

All GSP

Item beneficiaries World

Total imports 119,616 905,339 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Total GSP-eligible products 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,303 531,954

Non-LDBC-eligible products 27,101 321,275 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . LDBC eligible products 2,202 192,874 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total duty-free under GSP 16,336 16,336 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-LDBDC duty-free under GSP 14,661 14,661 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

LDBDC duty-free under GSP 1,675 1,675 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total of GSP-eligible products not benefitting from duty-free

treatment under the GSP 12,967 515,618 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GSP program exclusions 6,712 6,712 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

All other 6,255 508,906 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Noneligible products imports 90,313 373,385 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1 Customs-value basis; excludes imports into the Virgin Islands.

2 Includes imports from all beneficiary countries for the articles that are designated as eligible articles under GSP.

Non–LDBDC–eligible products are those for which a rate of duty of “Free” appears in the Special rate column of the

Harmonized Tariff Schedule of the United States (HTS), followed by the symbols “A” or “A*” in parentheses (the symbol “A” indicates that all beneficiary countries are eligible for duty–free treatment with respect to all articles provided

for in the designated provisions, and the symbol “A*” indicates that certain beneficiary countries, specified in general

note 4(d) of the HTS, are not eligible for duty–free treatment with respect to any article provided for in the designated

provision). LDBDC–eligible products are those for which a rate of duty of “Free” appears in the Special rate column

of the Harmonized Tariff Schedule of the United States (HTS) followed by the symbol “A+” in parentheses (the symbol

“A+” indicates that all least–developed beneficiary developing countries (LDBDC) (and only LDBDCs) are eligible for

duty–free treatment with respect to all articles provided for in the designated provisions). For a variety of reasons, all

imports from beneficiary countries under HTS provisions that appear to be eligible for GSP treatment do not always

and necessarily receive duty–free entry under the GSP. Such eligible imports may not receive duty–free treatment

under GSP for at least five types of reasons: (1) the importers 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 the USTR; (4) the

GSP beneficiary country may claim duty–free treatment under some other program or provision of the HTS; and (5)

the good fails to meet the rule of origin or direct shipment requirement of the GSP statute.

Source: Compiled from official statistics of the U.S. Department of Commerce.
 Table 5-11

U.S. imports for consumption and imports under the GSP from leading beneficiaries, and total, 1998

(Million dollars)

Imports of GSP art

Total

Rank Beneficiary imports GSP-eligible 1 Thailand 13,363 4,845 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

2 Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,922 4,098 

3 Indonesia 9,262 3,210 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4 Angola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,165 2,041 

5 India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,190 2,081 

6 Philippines 11,874 1,798 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

7 South Africa 3,053 617 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

8 Venezuela 8,420 566 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

9 Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,675 527 

10 Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 780 472 

Top 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,705 20,256 

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,616 29,303 

Note.-Calculations based on unrounded data.Source: Compiled from official statistics of the U.S. Department of Commerce.
101

CBERA is the trade-related component of the Caribbean Basin Initiative (CBI).45 President Reagan

launched CBI in 1982 to promote export-led economic

growth and economic diversification in the countries in

the Caribbean Basin.46

A wide range of Caribbean products is eligible for

duty-free entry under CBERA.47 Excluded by statute

from duty-free entry, however, are canned 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 dutyfree 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 levels on these articles were reduced by a total of 20 percent, but not more than 2.5

percent ad valorem, beginning January 1, 1992, in five

equal annual installments.

On October 31, 1997, the USTR initiated an investigation under Section 301 of the Trade Act of 1974

with respect to the protection of intellectual property

rights in Honduras. On March 30, 1998, the Administration suspended a portion of the Honduras trade preferences under the CBERA and the GSP because of its

failure to control piracy of television satellite signals.48

However, effective June 30, the USTR restored the

trade preferences “in recognition of the steps that the

Government of Honduras has taken to stop broadcast

piracy.”49

Total U.S. imports from CBERA beneficiary countries in 1998 were $17.1 billion. Imports under

CBERA preferences were valued at 18.8 percent of the

total (table 5-12). The leading items afforded duty-free

45 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, Thirteenth Report, 1997, USITC Publication 3132,

Sept. 1998.

46 President, “Address Before the Permanent Council of

the Organization of American States,” Weekly Compilation

of Presidential Documents, Mar. 1, 1982, pp. 217–223.

47 Section 213(a) of CBERA (19 U.S.C. 2703(a)) establishes criteria, or rules of origin, to determine which articles

are eligible for duty–free treatment under the act.

48 USTR, “USTR Announces Results of Special 301

Annual Review,” May 1, 1998.

49 USTR, “Trade Preferences for Honduras Restored,”

press release 98–65, July 1, 1998.

entry under CBERA in 1998 were cigars, medical

instruments, sugar, leather footwear uppers, and precious-metal jewelry (table A-30). In 1998, three countries—the Dominican Republic, Costa Rica, and Guatemala—accounted for more than 70 percent of all U.S.

imports under the CBERA preference program (table

A-31).

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

1998.50 ATPA has been operative since December 4,

1991, and is scheduled to expire on December 4,

2001.51 ATPA is the trade-related component of the

Andean Trade Initiative. President Bush launched the

initiative in 1990 to combat the production of illegal narcotics by helping beneficiaries promote exportoriented industries.52

ATPA benefits were modeled after CBERA, but

some limits are linked to GSP. A wide range of Andean

products is eligible for duty-free entry.53 ATPA excludes from duty-free entry the same list of articles excluded under CBERA, and rum is also excluded.54 As

under CBERA, handbags, luggage, flat goods (such as

wallets, change purses, and eyeglass cases), work

gloves, and leather wearing apparel are not eligible for

ATPA duty-free entry. However, ATPA duties on these

articles were reduced by a total of 20 percent, but not

more than 2.5 percent ad valorem, beginning January

1, 1992, in five equal annual installments.

Total U.S. imports from the four Andean countries

totaled $8.4 billion in 1998. Imports under ATPA preferences (shown by country in table A-32) were valued

at $1.65 billion, or 19.6 percent of the total (table

5-13). The leading items afforded duty-free entry under

ATPA in 1998 were refined copper cathodes, roses, and

chrysanthemums, standard carnations, anthuriums, and

orchids (table A-33).

50 For a more detailed description of the ATPA, including country and product eligibility, see USITC, Andean

Trade Preference Act: Impact on U.S. Industries and Consumers and on Drug Crop Eradication and Crop Substitution, Third Report, 1996, publication 2995, Sept. 1996.

51 19 U.S.C. 3202.

52 President, “Remarks Following Discussions With

President Rodrigo Borja Cevallos of Ecuador,” Weekly Compilation of Presidential Documents, July 23, 1990, 

pp. 1140–1143.

53 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.

54 ATPA sec. 204(b), 19 U.S.C. 3203(b).
102

Table 5-12

U.S. imports for consumption from CBERA countries, 1996-98

Item 1996 1997 1998

Total imports (1000 dollars) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,544,809.5 16,572,402.4 17,124,281.1

Imports under CBERA (1000 dollars) . . . . . . . . . . . . . . . . . . . . . . 2,791,055.4 3,207,842.4 3,224,563.9

Percent of total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.2 19.4 18.8

Value of imports under CBERA has reduced by the the value of MFN duty–free imports and ineligible items that

were misreported as entering under the program.

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

Table 5-13

U.S. imports for consumption from Andean countries, 1996–98

Item 1996 1997 1998

Total imports (1000 dollars) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,867,645.8 8,673,563.8 8,361,036.4

Total under APTA (1000 dollars) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,270,053.9 1,352,855.1 1,645,196.5

Percent of total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.1 15.6 19.7

Value of imports under APTA has reduced by the the value of MFN duty–free imports and ineligible items that were

misreported as entering under the program.

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

National Security Import

Restrictions

Section 232 of the Trade Expansion Act of 1962

authorizes the President, on the basis of a formal investigation and report by the Secretary of Commerce, to

impose restrictions on imports that threaten to impair

the national security of the United States.55 Among the

most important criteria considered by Commerce are—

 Requirements of the defense and essential civilian sectors;

 Maximum domestic production capacity;

 Quantity, quality, and availability of imports;

 Impact of foreign competition on the economic

welfare of the essential domestic industry; and

 Other factors relevant to the unique circumstances of the specific case.

The President has 90 days to decide on appropriate

action after receipt of the Secretary’s findings. The section 232 authority to adjust imports has been used sparingly in the past. It has most notably been employed in

55 19 U.S.C. 1862.

connection with the imposition of quotas, fees, or economic sanctions on imports of petroleum products. The

U.S. Commerce Department initiated no section 232

investigations during 1998.

Agricultural Adjustment Act

Under section 22 of the Agricultural Adjustment

Act (7 U.S.C. 624), the President may take action in

the form of an import fee or quantitative limitation to

restrict imports that render, or tend to render, ineffective, or materially interfere with, the operation of any

U.S. Department of Agriculture (USDA) program. The

President acts on the basis of an investigation and report by the Commission, although he may take emergency action pending receipt of that report. Following

advice of the Secretary of Agriculture and the investigation of the Commission, the President may modify,

suspend, or terminate import restrictions because of

changed circumstances.

Section 401(a)(2) of the Uruguay Round Agreements Act amended subsection (f) of section 22 to prohibit the imposition of quantitative limitations or fees

under section 22 on articles that are the product of a

WTO member. The amendment became effective with

respect to all articles except wheat on the date of the

entry into force of the WTO Agreement
103

(January 1, 1995).56 There were no investigations conducted or actions in effect under section 22 during

1998.

U.S. Textile and Apparel

Trade Program

The Uruguay Round Agreement

on Textiles and Clothing

The Agreement on Textiles and Clothing (ATC)

entered into force as part of the WTO agreements in

1995 and replaced the Multifiber Arrangement (MFA)

as an interim measure creating special rules for trade in

textiles and apparel (sector goods). The MFA, which

governed most world trade in sector goods during

1974-94, permitted the use of quotas without compensation, which is contrary to the general prohibition

against their use under the General Agreement on Tariffs and Trade (GATT).57 The ATC provides for the

elimination of the quotas and the complete “integration” of sector goods into the GATT regime—that is,

subject to GATT disciplines and the same rules as trade

in other sectors—over a 10-year transition period ending on January 1, 2005. All WTO countries are subject

to ATC disciplines, and only WTO countries are eligible for ATC benefits. The WTO countries with MFA

quotas on sector goods, which were imposed mainly on

developing countries, are the United States, the European Union (EU), Canada, and Norway.

The ATC provides for the elimination of quotas

through two mechanisms: product integration, including quota removal, and acceleration of growth rates for

quotas still in effect during the transition period. The

ATC required WTO countries to integrate at least 16

percent of their sector trade into the GATT regime on

January 1, 1995, and another 17 percent on

56 With the exception of the tariff–rate quotas in effect

on wheat, all section 22 fees and quantitative limitations on

agricultural products were converted to bound tariffs and

tariff–rate quotas (tariffs may not be raised above a bound

level without compensating affected parties) under a process

known as “tariffication.” The special tariff–rate quotas on

wheat expired in September 1995.

57 The MFA, a multilateral agreement negotiated under

GATT auspices, provided a general framework and guiding

principles for negotiation of bilateral agreements between

textile–importing and –exporting countries for the purpose of

setting quotas and quota growth rates or for unilateral action

by an importing country if an agreement could not be reached. The MFA was established to deal with problems of market disruption in sector trade in developed countries, while

permitting developing countries to share in expanded export

opportunities.

January 1, 1998 (based on their respective 1990 import

volumes). The countries are to integrate at least another

18 percent of the trade in 2002 and the remainder on

January 1, 2005. As sector goods are integrated into the

GATT regime, they become subject to normal GATT

rules.

The acceleration of quota growth rates under the

ATC is likely to affect U.S. import levels sooner than

product integration, because most import-sensitive

goods covered by the ATC will remain under quota

throughout the transition period.58 For products still

under quota during the transition period, the ATC required importing countries to increase the quota growth

rates for major supplying countries by 16 percent on

January 1, 1995, by another 25 percent on January 1,

1998, and by yet another 27 percent in 2002.59 For

small suppliers (i.e., 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, they were increased by 25 percent in

1995 and by 27 percent in 1998.60

The Textiles Monitoring Body (TMB), which supervises the implementation of the ATC provisions, reported that, with one exception, the articles integrated

by the importing developed countries in the first stage

were not subject to quotas.61 The TMB also noted that

58 The Statement of Administrative Action accompanying the U.S. Uruguay Round Agreements implementing legislation states that the Committee for the Implementation of

Textile Agreements (CITA), in drawing up the lists of products, was to defer the integration of the most sensitive goods

until the end of the 10–year period. See U.S. House of Representatives, “Statement of Administrative Action,” The

Uruguay Round Trade Agreements, Texts of Agreements

Implementing Bill, Supporting Statements, Message from the

President of the United States, Sept. 27, 1994, House Doc.

103–316, vol. 1, p. 115.

59 The acceleration of quota growth rates is based on the

rates specified in the bilateral MFA agreements in place on

December 31, 1994. The base rates by which the quotas

could grow annually vary by country and product, but usually ranged from less than 1 percent to 6 percent; some countries had base rates of 7 percent. Assuming a base rate for a

major supplier of 6 percent, the annual quota growth rate

would be 6.96 percent in stage one (1995–97), 8.7 percent in

stage two (1998–2001), and 11.05 percent in stage three

(2002–04).

60 Small suppliers subject to U.S. quotas are Bahrain,

Bulgaria, Colombia, Costa Rica, Czech Republic, Dominican Republic, Egypt, El Salvador, Fiji, Guatemala, Hungary,

Jamaica, Kenya, Kuwait, Macau, Mauritius, Poland, Qatar,

Romania, Slovak Republic, United Arab Emirates, and Uruguay.

61 Information in this paragraph is from the WTO, Comprehensive Report of the Textiles Monitoring Body to the

Council for Trade in Goods on the Implementation of the

Agreement on Textiles and Clothing During the First Stage

of the Integration Process, document G/L/179 (97–3288),

July 31, 1997, paras. 15 and 70, found at Internet address

http://www.wto.org/wto/ddf, retrieved Jan. 28, 1998.
104

the articles integrated in both the first and second

stages were concentrated in relatively less value-added

products such as yarns and fabrics, rather than apparel

and other made-up textile products. Taking the first and

second stages together, TMB stated that lower-valueadded goods accounted for 76 percent of the import

volume integrated by the EU, 65 percent for the United

States, 60 percent for Norway, and 47 percent for Canada.

The ATC also allows WTO countries during the

10-year transition period to establish quotas on uncontrolled imports of sector goods that have yet to be 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 product is

integrated into the GATT regime.

U.S. Quota Actions in 1998

The United States currently has quotas on sector

goods from 47 countries, 37 of which are WTO members whose exports of such goods are subject to the

terms of the ATC (table 5-14). In 1998, the 37 WTO

countries supplied 56 percent of the total value of U.S.

sector imports. Another 12 percent of the imports came

from Mexico, a WTO member for whom U.S. quotas

are being phased out under the NAFTA. The nine nonWTO countries subject to U.S. quotas on sector goods,

led by China and Taiwan, supplied 16 percent of the

imports in 1998. Sector imports from non-WTO countries are subject to quotas imposed by the President under section 204 of the Agricultural Act of 1956, which

provides the President with the basic statutory authority to enter into agreements with foreign governments

to limit their exports of sector goods to the United

States, and to issue regulations to carry out such agreements.62

In 1998, the Committee for the Implementation of

Textile Agreements (CITA), an interagency group that

administers the U.S. trade agreements program for sector goods, initiated three requests for consultations

with foreign supplying countries (“calls”) for the purpose of establishing new quotas.63 These calls involved

one ATC safeguard action on yarn from Pakistan (a

WTO country) and two calls under section 204 of the

Agricultural Act of 1956 on apparel from Cambodia (a

non-WTO member).

The call with respect to Pakistan, initiated in December 1998, resulted in the establishment of a quota

62 7 U.S.C. 1854.

63 The three calls in 1998 were down from the four calls

issued in 1997. In 1995, the first year of the ATC, the United

States initiated 28 calls, 15 of which were rescinded.

on imports of Pakistani combed cotton yarn (category

301) of 5,262,665 kilograms for the 12-month period

beginning on March 17, 1999.64 According to CITA,

U.S. imports of the Pakistani yarn had risen significantly, and the U.S. industry had experienced declining

production and shipments, downward pricing pressures, a substantial increase in inventories, deteriorating

financial performance, two mill closures, and employment losses.65,66

The two calls with respect to Cambodia, initiated

in October 1998, resulted in the establishment of quotas on its cotton knit shirts and blouses (338/339) of

1,745,634 dozen and cotton sweaters (345) of 53,001

dozen for the 12-month period beginning on October

28, 1998. According to CITA, U.S. imports of the

sweaters and low-valued knit shirts and blouses from

Cambodia had increased significantly, and the U.S. industry had experienced declines in production and market shares for these goods.67 The only other U.S. quota

in place with Cambodia (a quota on cotton gloves of

1,250,841 dozen pairs set in 1997) was extended by

CITA at the same level for 1 more year, beginning on

October 29, 1998.68

On January 20, 1999, the United States and Cambodia signed a new, 3-year bilateral textile agreement

that cancels and supersedes the previous quotas for

Cambodia.69 The agreement establishes 12 quotas for

64 CITA, “Establishment of an Import Limit for Certain

Cotton Textile Products Produced or Manufactured in Pakistan,” Federal Register (64 F.R. 12290), Mar. 12, 1999, p.

12290. CITA had initiated a call on the combed cotton yarn

from Pakistan in 1997, but allowed the call to expire without

further action.

65 CITA, “Request for Public Comments on Bilateral

Textile Consultations with the Government of Pakistan,”

Federal Register (63 F.R. 72288), Dec. 31, 1998, p. 72288.

66 In April 1999, the TMB recommended that the quota

introduced by the United States on imports of combed cotton

yarn from Pakistan should be rescinded. WTO, Textiles

Monitoring Body, “Fifty-Fourth Meeting of the TMB,”

G/TMB/18, Apr. 29, 1999 (99-1738), found at Internet address http://www.wto.org/ddf/cgi_bin/searchp, retrieved June

1, 1999.

67 See CITA Federal Register notices, “Request for

Public Comments on Bilateral Textile Consultations with the

Government of Cambodia,” (63 F.R. 59548), Nov. 4, 1998,

p. 59548; and “Establishment of Import Limits for Certain

Cotton Textile Products Produced or Manufactured in Cambodia,” (63 F.R. 71620), Dec. 29, 1998, p. 71620.

68 CITA, “Establishment of an Import Limit for Certain

Cotton and Man–Made Fiber Textile Products Produced or

Manufactured in Cambodia,” Federal Register (63 F.R.

57666), Oct. 28, 1998, p. 57666.

69 Information on the new agreement is from CITA,

“Establishment of Import Restraint Limits for Certain Cotton, Wool and Man–Made Fiber Textile Products Produced

or Manufactured in Cambodia,” Federal Register (64 F.R.

6050), Feb. 8, 1999, p. 6050; and USTR, “U.S. and Cambodia Reach Bilateral Textile Agreement,” press release 99–07,

Jan. 21, 1999.
105

Table 5-14

Trading partners with which the United States has textile and apparel quotas, as of March 31,

1999, and U.S. bilateral imports of textiles and apparel in 1998

(Million dollars)

Partners Imports

WTO members subject to the ATC

Bahrain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Bangladesh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,695

Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

Bulgaria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392

Costa Rica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831

Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Dominican Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,395

Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465

El Salvador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,203

Fiji . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Guatemala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,145

Honduras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,879

Hong Kong (China) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,622

Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,287

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,973

Jamaica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422

Kenya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Kuwait . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Macau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,027

Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 783

Mauritius . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234

Myanmar (Burma) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,427

Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,072

Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Qatar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

South Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,638

Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308

Slovak Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Sri Lanka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,488

Thailand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,964

Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,067

United Arab Emirates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288

Uruguay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Non-WTO members subject to section 204 of the Agricultural Act of 1956

Cambodia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,900

Former Yugoslav Republic of Macedonia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Laos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Nepal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

Oman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,832

Ukraine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

WTO member subject to the North American Free-Trade Agreement

Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,453

Source: U.S. Department of Commerce, International Trade Administration, Office of Textiles and Apparel.
106

selected apparel articles from Cambodia, including

larger quotas for the articles previously subject to quotas. Under the agreement, Cambodia also agreed to improve cooperation and information sharing to prevent

illegal textile transshipments and to increase market access in Cambodia for U.S. exporters. In addition, for

the first time in a U.S. bilateral textile agreement, the

United States obtained a commitment from Cambodia

to improve labor conditions in its textile and apparel

sector. If the United States determines that Cambodia’s

labor conditions comply with international labor standards by December 1 of each agreement year, U.S.

quotas could be increased by 14 percent for the following agreement year, in addition to the annual quota

growth rate of 6 percent.70

Other Trade Agreements

In addition to the ATC, bilateral and regional trade

agreements govern U.S. trade in sector goods with several major trading partners, notably China and NAFTA

partners Mexico and Canada. The textile agreements

with China provide for quotas on its sector exports to

the United States and, for the first time, market- opening commitments from China for exports of U.S.-produced sector goods.

China

The United States and China agreed on a series of

agreements contained in a Memorandum of Understanding (MOU) dated February 1, 1997, governing

trade in sector goods.71 One agreement extended U.S.

quotas on Chinese nonsilk goods for 4 years through

the year 2000. This agreement reduced quotas for products in which China had repeatedly violated quotas by

transshipping through third countries, strengthened enforcement terms against illegal transshipments, and,

similar to the 1994 agreement, allowed the United

70 USTR official, telephone conversation with USITC

staff, Feb. 16, 1999.

71 On January 22, 1999, China’s Ministry of Foreign

Trade and Economic Cooperation notified the U.S. Embassy

in Beijing that it was ready to exchange diplomatic notes to

formalize the agreements contained in the MOU. The initial

diplomatic note submitted by the U.S. Embassy on March

11, 1997, had not been reciprocated by the Chinese, pending

the reduction of certain Chinese tariffs, which was announced on January 1, 1999. See U.S. Department of State

telegram No. 000799, “China Ready to Exchange Notes on

Textile Agreement,” prepared by U.S. Embassy, Beijing, Jan.

26, 1999.

States to “triple charge” quotas for repeated violations

of the agreement.72 A second agreement involved a

visa arrangement73 and a third agreement extended

U.S. quotas on Chinese silk goods for 1 more year to

December 31, 1997, when they were allowed to expire.74 Another agreement with China involved market

access, whereby the United States for the first time

“obtained significant market opening commitments

from China for export of U.S.-manufactured apparel

and textile products.”75

As part of the textile agreements reached with China in February 1997, the United States agreed that

should China become a member of the WTO, it would

immediately receive the same benefits on the same

schedule accorded other WTO textile-exporting countries under the ATC, including the phaseout of quotas

discussed earlier.76 However, under the terms of the

textile agreements with China, U.S. imports of sector

goods from China would be subject to the application

of a selective safeguard clause for 4 years beyond the

termination of all other textile quotas for WTO countries on January 1, 2005. In a related matter, and at the

request of the United States Trade Representative, the

United States International Trade Commission in January 1999 instituted investigation No. 332-403, “Assessment of the Economic Effects on the United States of

72 The United States requires visas for sector goods

from China and many other countries. Issued by the quota

regulatory authority of the country in which the goods originate, a visa is a stamp on a paper document that certifies the

origin of the goods, specifies the product type and quantity,

and authorizes the shipment. The U.S. Customs Service,

which is implementing electronic visas with several countries, uses the information to charge imports against quotas

and to help eliminate unlawful transshipments.

73 In May 1998, CITA announced that triple charges

would be assessed against certain of China’s quotas for illegal transshipments. For further information, see CITA, “New

Transshipment Charges for Certain Cotton and Man–Made

Fiber Textile Products Produced or Manufactured in the

People’s Republic of China,” Federal Register (63 F.R.

25202), May 7, 1998, p. 25202.

74 The United States agreed to China’s request to eliminate visa requirements for silk goods effective as of January

1, 1999. See CITA, “Elimination of Export Visas and Electronic Visa Information System (ELVIS) Requirements for

Silk Apparel Products Produced or Manufactured in the

People’s Republic of China,” Federal Register (63 F.R.

65753), Nov. 30, 1998, p. 65753.

75 U.S. Department of State telegram , “Textiles/China:

Exchange of Notes,” message referance No. 040894, prepared by U.S. Department of State, Washington, DC, Mar. 5,

1997.

76 “Agreement Between the United States of America

and The People’s Republic of China Concerning Trade In

Textile and Apparel Products,” para. 21, Feb. 1, 1997.
107

China’s Accession to the WTO.”77 The study will include an assessment of the effect of removal of U.S.

sector quotas on all WTO members relative to the inclusion of China in the WTO, in the context of the U.S.

bilateral agreements on sector goods with China.

NAFTA

The NAFTA entered into force on January 1, 1994,

and provides for the elimination of duties on trade

among the United States, Canada, and Mexico in “originating” goods.78 As of January 1, 1998, U.S. imports

of all originating sector goods from Canada can enter

free of duty. The United States did not, and does not,

apply quotas to sector imports from Canada. For Mexico, U.S. tariffs for most originating sector goods were

phased out as of January 1, 1999; the remainder will be

phased out in 2003. The United States eliminated quotas for originating sector goods from Mexico upon implementation of the NAFTA and will phase out quotas

for nonoriginating goods (i.e., goods that do not meet

NAFTA rules of origin) by 2004. The NAFTA provision having the greatest impact on sector trade to date

allows U.S. imports from Mexico of sector goods that

are assembled from fabric made and cut in the United

States to enter free of duty and quota under HTS heading 9802.00.90.79

As a general rule, NAFTA preferential tariffs do

not apply to imports of nonoriginating goods, which

are subject to normal trade relations or general tariffs.

However, NAFTA contains an exception to this rule

that permits limited amounts of nonoriginating sector

77 USITC, “Assessment of the Economic Effects on the

United States of China’s Accession to the WTO” (investigation No. 332–403), Federal Register (64 F.R. 3714), Jan. 25,

1999, p. 3714.

78 NAFTA preferences apply to goods that “originate” in

the United States, Canada, and Mexico––that is, the goods

meet the NAFTA rules of origin and are therefore eligible for

preferences upon importer claims. The NAFTA rule of origin

for textiles and apparel is basically a “yarn forward” rule,

which requires that the goods be produced in a NAFTA

country from the yarn–formation stage forward in order to

receive the benefits of the agreement. For certain products, a

fiber or fabric forward rule applies.

79 The NAFTA origin rules for sector imports from

Mexico under heading 9802.00.90 stipulate that all fabric

components, including interlinings, must be of fabric wholly

made and cut in the United States. Because of a loss of domestic supply of certain interlinings used in suits and suit–

type coats, the United States in September 1998 extended

duty–free entry to such goods from Mexico that are assembled from U.S.–made and –cut fabric, but containing

foreign interlinings. See President, Proclamation 7125 of

September 18, 1998, “To Modify Certain Provisions of the

Special Textile and Apparel Regime Implemented under the

North American Free Trade Agreement,” Federal Register

(63 F.R. 50737), Sept. 22, 1998, p. 50737.

goods imported from another NAFTA member to qualify for preferential tariffs up to specified annual quantity levels known as tariff preference levels (TPLs). The

TPL for U.S. imports of wool apparel from Canada has

been of concern to the U.S. industry because of the

concentration of TPL imports in men’s (and boys’)

wool suits and their rapid growth since implementation

of the United States-Canada Free-Trade Agreement

(CFTA) in 1989.80 The suits accounted for slightly

more than 60 percent of the imports under the wool

apparel TPL in 1997 and in 1998, when Canada filled

93 percent of the TPL. Although total imports of men’s

wool suits from Canada in 1998 fell by 7 percent from

1997, to 1.3 million suits valued at $149 million, they

were up by almost sixfold since 1989. Most of these

Canadian suits were nonoriginating goods (e.g., suits

made from Asian or European fabric) and therefore

were entered under the TPL in order to benefit from

NAFTA preferential tariffs (duty-free as of 1998). Legislation introduced in September 1997 to provide relief

for the U.S. industry from increased imports of wool

tailored clothing from Canada (H.R. 2432) did not

come up for a vote before adjournment of the 105th

Congress in October 1998. In a related matter, legislation introduced, but not voted on, in the 105th Congress would have reduced or eliminated U.S. tariffs on

fine wool fabrics used in the production of tailored

clothing (H.R. 4358 and S. 2339).81 U.S. tariffs on

such fabrics (31.7 percent ad valorem in 1998) are

more than double the Canadian tariffs.

Proposed Legislation on Textiles

and Apparel from Africa

Legislation introduced in the 105th Congress—

H.R. 1432, the African Growth and Opportunity Act—

would have increased U.S. market access for sector

goods from 48 eligible countries of sub-Saharan Africa

(SSA), which accounted for less than 1 percent of U.S.

sector imports in 1998. The bill would have eliminated

U.S. quotas on sector imports from SSA countries

80 In 1994, the CFTA was suspended and its duty phaseout schedules were incorporated into NAFTA.

81 On January 19, 1999, a similar bill was introduced in

the Senate (S. 218, To Amend the Harmonized Tariff Schedule of the United States to Provide for Equitable Duty Treatment for Certain Wool Used in Making Suits) to reduce or

eliminate U.S. import duties for fine wool fabrics used in the

production of suits.
108

(Mauritius and Kenya are the only SSA countries currently subject to such quotas) and authorized the President to grant duty-free treatment under the Generalized

System of Preferences (GSP) to sector goods from

SSA countries. The House of Representatives passed

H.R. 1432 in March 1998, but the companion bill in

the Senate, S. 778, did not come up for a vote before

adjournment of the 105th Congress. The African

Growth and Opportunity Act was introduced in the

106th Congress on February 2, 1999 (H.R. 434), and

March 18, 1999 (S. 666). Another bill relating to Africa, the HOPE for Africa Act (H.R. 772), was

introduced on February 23, 1999.

U.S. Textile and Apparel Trade

in 1998

U.S. imports of sector goods in 1998 rose by 13

percent over the 1997 level to a record 25.9 billion

square meter equivalents (SMEs) (valued at $60.4 billion).82 A major share of the import increase continued

to come from countries benefiting from preferential

market access, namely NAFTA partners Mexico and

Canada and the Caribbean Basin Economic Recovery

Act (CBERA) countries. However, the import growth

from the NAFTA and CBERA countries slowed significantly in 1998, reportedly because of increased competition from East Asian countries that had devalued

their currencies in 1997.83 Imports from Mexico grew

by 17 percent in 1998, down from 38 percent in 1997,

to 3.6 billion SMEs ($7.5 billion). Mexico remained

the largest supplier of sector imports by quantity and,

for the first time, supplanted China as the largest supplier by value. Imports from CBERA countries rose by

8 percent in 1998, down from 25 percent in 1997, to

3.2 billion SMEs ($8.4 billion).

Competition in sector goods between CBERA

countries and Mexico, which mainly compete with one

another for apparel assembly work from U.S. firms,

has changed since the NAFTA’s implementation in

1994. Although garments sewn in Mexico from fabric

made and cut in the United States enter free of duty

and quota under the NAFTA, similar CBERA goods

enter under preferential quotas (guaranteed access levels), but are still subject to duty on the value added

82 Import data in this section are from the U.S. Department of Commerce, Office of Textiles and Apparel

(OTEXA), Major Shippers Report. Such data, which represent U.S. general imports of goods covered by the U.S. textile trade agreements program, are available on OTEXA’s

Web site at http://otexa.ita.doc.gov/msrpoint.htm.

83 American Textile Manufacturers Institute, “International Trade,” Textile HiLights, Dec. 1998, p. vi.

offshore.84 The competitive balance between Mexico

and CBERA countries was also affected by the 50 percent devaluation of the Mexican peso during December

1994-January 1995, which effectively reduced dollar

prices of Mexican goods in the U.S. market. Trade and

investment reportedly have been diverted from

CBERA countries to Mexico.85 To remedy the situation, legislation was again introduced in the U.S. Congress in 1998 (S. 2400, the Trade and Tariff Act of

1998) to provide NAFTA-like treatment for qualifying

sector goods and other articles exempted from dutyfree entry under the CBERA.86 However, the bill did

not come up for a vote before adjournment of the 105th

Congress.87

U.S. imports of sector goods from China resumed

their downward trend in 1998, declining by 7 percent

to 1.9 billion SMEs valued at $5.9 billion. They had

grown by 27 percent in 1997, after falling by 24 percent during 1993-96. Industry sources attributed the

import decline from China in 1998 to competition from

East Asian nations (Korea, Indonesia, Malaysia, the

Philippines, and Thailand) that had devalued their currencies.88 In addition, floods that destroyed many textile factories in South China and efforts by the Chinese

government to restructure the textile industry may have

slowed production of sector goods for export to the

United States.89 Trade sources have suggested that the

84 For every $10 in f.o.b. value, a typical CBERA garment entered under heading 9802.80 contains $6.40 in duty–

free U.S. parts and $3.60 in dutiable, foreign value added.

Applying the 1998 trade–weighted average duty on apparel

of 15.8 percent to the foreign value added yields an average

duty of $0.57, or an ad valorem equivalent of 5.7 percent.

85 Textile trade consultant, telephone conversation with

USITC staff, Jan. 22, 1999.

86 In November 1997, the U.S. House of Representatives voted down a bill that would have granted NAFTA

parity to CBERA sector goods (H.R. 2644, the United

States–Caribbean Trade Partnership Act).

87 Subsequently, legislation was introduced in the 106th

Congress on February 4, 1999 (S. 371, Central American

and Caribbean Relief Act), and March 4, 1999 (H.R. 984,

Caribbean and Central America Relief and Economic Stabilization Act), to provide CBERA countries with NAFTA

parity and economic assistance needed to recover from the

devastation caused by Hurricanes Mitch and Georges in the

fall of 1998.

88 Industry trade consultant, telephone interview with

USITC staff, Jan. 22, 1999.

89 U.S. Department of State telegram, “China/Textile

Industry: Everything You Might Possibly Want to Know,”

message reference No. 017845, prepared by the U.S. Embassy, Beijing, Oct. 22, 1998.
109

U.S. Government’s imposition of triple charges against

China’s quotas in May 199890 because of illegal Chinese transshipments may also have contributed to the

import decline from China in 1998.91 Such enforcement measures may have discouraged some U.S. firms

from importing sector goods from China.

The relative decline of the traditional “Big Three”

Asian suppliers of sector goods—Hong Kong, Taiwan,

and Korea—slowed in 1998, as imports from Hong

Kong and Korea grew significantly. Imports of sector

goods from Hong Kong and Korea rose by 18 percent

to 1.0 billion SMEs ($4.6 billion) and 28 percent to 1.0

billion SMEs ($2.6 billion), respectively; imports from

Taiwan fell by 1 percent to 1.2 billion SMEs ($2.8 billion). The import increase from Hong Kong followed 3

years of decline and occurred despite competition from

lower cost countries in East Asia and U.S. efforts to

combat alleged transshipments of Chinese sector goods

through Hong Kong.92 The import growth from Hong

Kong may be partly attributable to its economic and

political stability during a year of economic uncertainty

in East Asia, its reputation for reliable deliveries and

quality production and service, and limited overlap in

the composition of its sector exports with other East

Asian countries.93 Trade sources attribute the import

growth from Korea, which was more than double the

12 percent gain in 1997, to lower export prices as a

result of its currency devaluation in 1997. The import

decline from Taiwan is partly attributable to a decrease

in its price competitiveness relative to Korea and other

East Asian nations that devalued their currencies.

Another contributing factor may be Taiwan’s growing

foreign investment in textile production in East Asian

countries such as Thailand and in Mexico, to take ad90 USTR, “Triple Charges Assessed on Chinese Textile

Transshipments,” press release 98–45, May 4, 1998, found at

Internet address: http://www.ustr.gov/releases/1998/05/98–

45.pdf, retrieved May 8, 1998.

91 American Textile Manufacturers Institute, “International Trade,” Textile HiLights, Sept. 1998, p. v.

92 Hong Kong trade sources attributed the drop in 1997

sector imports to additional reporting requirements established by the U.S. Customs Service to combat illegal transshipments. The United States and Hong Kong agreed to enhanced enforcement measures (expanded information sharing, increased cooperation on factory observation visits, and

greater access to statistical information) on September 18,

1998. OTEXA official, telephone interview with USITC

staff, Jan. 21, 1999.

93 “Price Pressure on Exporters,” Textile Asia, June

1998, p. 87; and U.S. Department of State telegram “Hong

Kong Trade Outlook: A Bit Weak, but No Dramatic Decline,” message reference No. 001495, prepared by U.S.

Department of State, Washington, DC, Feb. 19, 1998.

vantage of Mexico’s preferential access and proximity

to the U.S. market and its competitively priced labor.94

U.S. imports of sector goods from the Association

of Southeast Asian Nations (ASEAN) rose by 20 percent for the second consecutive year in 1998, to 3.2

billion SMEs ($7.4 billion). Imports from the major

ASEAN sources, Thailand and Indonesia, rose by 30

percent and 14 percent, respectively. The import increase from Indonesia was smaller than what some

trade sources had expected, given the devaluation of its

currency; however, the devaluation had effectively increased costs of imported production inputs for Indonesian apparel producers and, hence, limited their ability to reduce prices of apparel exports to the United

States.95 U.S. quotas on imports of sector goods from

Indonesia also limited the growth of its exports to the

United States.

Developments in the Rules of

Origin for Textiles and Apparel

The United States implemented new rules of origin

for textiles and apparel on July 1, 1996, as required by

section 334 of the Uruguay Round Agreements Act.

The rules affect country-of-origin determinations for

U.S. imports of such goods that are subject to manufacturing and processing operations in, or contain components from, more than one country. The U.S. industry

had sought the rules change on the basis that foreign

suppliers were dividing their production operations

among various countries as a means of avoiding U.S.

import quotas.96

As part of a settlement of a complaint brought by

the EU against the new U.S. origin rules, the Clinton

administration proposed legislation in 1998 to restore

the preexisting rules of origin for certain dyed and

printed nonwool fabrics and silk accessories (mainly

scarves).97 Under the section 334 rules, the country of

origin for these fabrics and scarves is the country in

which the base fabric is formed, even though the fabric

94 John R. Westbrook, “Massive Mexican Investment”

and “More Investment in Thailand,” Textile Asia, June 1998,

pp. 92–93.

95 “Indonesia in the Midstream,” Textile Asia, Sept.

1998, p. 64.

96 U.S. House of Representatives, Committee on Ways

and Means, Overview and Compilation of U.S. Trade Statutes, 105th Cong., 1st sess. (Washington, DC: U.S. Government Printing Office, June 25, 1997), WMCP: 105–4, p. 121.

97 S. 2394 (To Amend Section 334 of the Uruguay

Round Agreements Act to Clarify the Rules of Origin with

Respect to Certain Textile Products) and H.R. 4526 (A Bill

Which Would Change Customs Rules–of–Origin for Certain

Textile Products) were introduced on July 30 and September

9, 1998, respectively.
110

undergoes dyeing, printing, and other finishing

operations in another country. The U.S. rules in effect

before July 1996 permitted the processes of dyeing and

printing to confer origin when accompanied by two or

more finishing operations.

In May 1997, the EU filed a request with the WTO

for consultations with the United States, stating that the

new rules had adversely affected its exports of certain

silk accessories and dyed and printed nonwool fabrics

to the U.S. market. The EU stated that as a result of the

U.S. rules change, its exports of these articles had lost

their quota-free access to the U.S. market, and EU exporters had to comply with U.S. quota or visa requirements applicable to the country of origin of the base

fabric. In addition, the silk accessories had to be

marked as a product of the country in which the base

fabric was formed (mainly China), rather than as a

product of the EU country in which the fabric was

printed, dyed, and otherwise finished (e.g., Italy), as

was the usual case under the previous rules.

The United States and the EU reached agreement

in July 1997 to postpone formal WTO dispute- settlement proceedings and accept an interim solution. If the

WTO rules-of-origin harmonization process was not

completed by July 20, 1998, the United States agreed

that within 1 month, it would introduce legislation to

restore the rules of origin for certain textile articles that

existed before July 1, 1996.98 In the meantime, the

United States agreed to exempt the silk accessories

from U.S. marking rules identifying them as the product of the country in which the base fabric was formed

and to remove certain dyed and printed nonwool fabrics from quotas and visa requirements of the countries

in which the base fabric was formed.

Since the WTO extended the deadline for the rulesof-origin harmonization process to November 1999,

legislation to amend the U.S. rules of origin for certain

textile products was introduced in the U.S. Congress

on July 30, 1998 (S. 2394), and September 9, 1998

(H.R. 4526). Although no action was taken on the legislation before adjournment of Congress in October

1998, the EU claimed that the legislation was too narrow in scope for it did not include all the commitments

that it had understood would be covered by the U.S.-

98 The WTO Agreement on Rules of Origin calls for the

multilateral harmonization of rules of origin used for non–

preferential trade regimes so as to provide more certainty in

the conduct of world trade. To this end, the Agreement

called for a 3–year work program that was scheduled to be

completed by July 20, 1998; however, the WTO extended

the deadline until November 1999.

EU settlement in 1997.99 In particular, the EU stated

that the legislation did not include finished textile articles that are made from the dyed or printed fabrics,

such as bed sheets.100 On November 25, 1998, the EU

renewed its complaint with the WTO over the U.S. origin rules.101 On January 14 and 15, 1999, U.S. and EU

trade officials held informal talks in Geneva; however,

no agreement was reached during the consultations,

and no further action was taken as of January 22,

1999.102

Major U.S. Trade

Sanctions Activities

The United States imposes trade sanctions against

specific foreign countries under several statutory authorities.103 Many of the sanctions are administered

and enforced by the Office of Foreign Assets Control

(OFAC) of the U.S. Department of the Treasury.104 A

few specifically targeted trade controls are administered and enforced by other agencies, including the Bureau of Export Administration of the U.S. Department

of Commerce, the Office of Defense Trade Controls of

the U.S. Department of State, and the U.S. Customs

Service of the U.S. Department of the Treasury.

99 Hugo Paemen, Head of Mission for the Delegation of

the European Commission to the United States, “EU Letter

on Rules of Origin,” Oct. 2, 1998, found at Internet address

http://www.insidetrade.com/sec–cgi/as_web.ece?SEC_current+B+trade984022, retrieved Oct. 9, 1998.

100 For bed sheets finished in one country from fabric

made in another country, the current U.S. rules stipulate that

the country of origin is the country in which the fabric is

formed, rather than the country in which the fabric is cut to

size, hemmed, and otherwise sewn, as was the usual case

under the previous rules. 101 USTR official, telephone interview with USITC

staff, Dec. 9, 1998.

102 OTEXA official, telephone interview with USITC

staff, Jan. 22, 1999.

103 The basic authorizing statutes are the Trading with

the Enemy Act (50 U.S.C. App. 1–44); International Emergency Economic Powers Act (50 U.S.C. sec. 1701–06); Iraqi

Sanctions Act (Public Law 101–513, 104 Stat. 2047–55);

United Nations Participation Act (22 U.S.C. 287(c)); International Security and Development Cooperation Act (22

U.S.C. 2349 aa–9); The Cuban Democracy Act (22 U.S.C.

6001–10); the Cuban Liberty and Democratic Solidarity Act

of 1996 (Public Law 104–114); the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104–132); and

the United Nations Participation Act (22 U.S.C. 287(c)). 104 OFAC acts under Presidential wartime and national

emergency powers, as well as authority granted by specific

legislation, to impose controls on transactions and to freeze

assets under U.S. jurisdiction. OFAC also has the authority

to impose civil monetary penalties for certain violations. The

United States applies criminal penalties (prison terms and/or

monetary penalties) for violations under these regulations.

U.S. Department of the Treasury, OFAC, “Foreign Assets

Control Regulations for Exporters and Importers,” Aug. 19,

1998, found at Internet address http://www.ustreas.gov/treasury/services/fac/fac.html, retrieved Jan. 11, 1999.
111

In this report, the term “trade sanction” applies to

actions undertaken to restrict or prohibit U.S. trade (including nonmilitary exports, imports, government procurement, and trade finance) with designated hostile or

pariah countries to further U.S. foreign policy or national security objectives. U.S. trade sanctions are covered under many statutes. Some of the U.S. sanctions

are multilateral undertakings pursuant to United Nations (UN) resolutions and carried out in close cooperation with other governments; other sanctions are

unilateral U.S. actions. During 1998, the USITC conducted an investigation requested by the House Ways

and Means Committee on U.S. unilateral economic

sanctions.105 In addition to trade sanctions imposed by

the Federal Government, some U.S. states and municipalities also imposed international trade sanctions during 1998.

105 USITC, Overview and Analysis of Current U.S. Unilateral Economic Sanctions, USITC Publication 3124, Aug.

1998.

Table 5-15 lists major U.S. trade sanctions against

specific countries operative during 1998. The United

States imposed and subsequently removed certain trade

sanctions against India and Pakistan during 1998. New

economic sanctions were imposed against the Federal

Republic of Yugoslavia (Serbia and Montenegro) and

the Governments of Serbia for their actions in Kosovo.

Also during 1998, sanctions imposed by the Commonwealth of Massachusetts against companies that do

business with Burma (such sanctions are also imposed

by other individual U.S. states and municipalities) were

the subject of a WTO complaint by U.S. trading partners.106 U.S. trade sanctions restricting imports of certain shrimp from countries that do not comply with

U.S. marine wildlife conservation efforts are discussed

in the context of developments in the WTO in chapter

2.

106 Proceedings of the panel, established in October

1998, were suspended in February 1999.
112

Table 5-15

Summary of major U.S. trade sanctions operative in 1998

Country Sanctions

Burma . . . . . . . . . . . . . . . No trade restrictions. New investment in Burma by U.S. persons prohibited. Several

U.S. states and municipalities apply selective purchasing/contracting measures against

companies that do business with Burma.

1998 developments: Consultations between the United States and the EU during

1997–98 failed to reach an agreement on a WTO complaint filed by the EU

(WT/DS88/1) in June 1997 concerning the selective procurement measures enacted by

the Commonwealth of Massachusetts. Consequently, the WTO established a dispute

settlement panel to investigate the matter on Oct. 21, 1998 at the request of the EU.

The EU complaint alleges that, as Massachusetts is covered under the U.S. schedule

to the Agreement on Government Procurement (GPA), the Massachusetts measures

violate the GPA.

Cuba . . . . . . . . . . . . . . . . Sanctions prohibit imports of goods or services either directly or through third countries,

and prohibit exports or reexports of U.S. goods, technology, or services, brokering

offshore transactions, and provision of consulting services by U.S. persons wherever

located. Vessels carrying goods or passengers to or from Cuba or carrying goods in

which Cuba or a Cuban national has any interest prohibited from entering U.S. ports.

Cuban assets in the United States blocked, and total freeze on financial dealings with

Cuba. Title III of the 1996 Cuban Liberty and Democratic Solidarity (Libertad) Act1

permits U.S. nationals whose property was confiscated by the Cuban government to

sue Cuban governmental entities or foreign investors who use or profit in any way from

these properties; President Clinton has suspended the right to file such suits since that

provision entered into force. Title IV of the Libertad Act denies visas and entry into the

United States of individuals who traffic in U.S.-claimed properties in Cuba.

1998 developments: On May 18, 1998, the United States and the EU signed an

Understanding with Respect to Disciplines for the Strengthening of Investment

Protection in which the EU agreed to take concrete action to discourage investments in

illegally expropriated properties.2 That Understanding terminated a 1997 EU complaint

against the United States before the WTO alleging that the Libertad Act is inconsistent

with the U.S. obligations under the WTO Agreement.3

Federal Republic of

Yugoslavia (Serbia and

Montenegro) and

Republic of Serbia . . . . . 

Because of actions and policies of the Governments of the Federal Republic of

Yugoslavia (Serbia and Montenegro)4 and the Republic of Serbia with respect to

Kosovo, President Clinton issued Executive Order 13088 on June 9, 1998, imposing

sanctions against those countries. General License No. 1, issued on June 18, 1998,

however, excludes the Government of the Republic of Montenegro from the U.S.

sanctions. Effective June 10, 1998, all property and the interests in property of the

Governments of the Federal Republic of Yugoslavia (Serbia and Montenegro)4 and the

Republic of Serbia in the United States or subject to U.S. jurisdiction or control are

blocked. Financial transactions, including trade financing, with the Federal Republic of

Yugoslavia (Serbia and Montenegro)4 and the Republic of Serbia are prohibited, and

new investments in the Republic of Serbia are prohibited.

India and Pakistan . . . . . The United States imposed economic sanctions against India on May 13, 1998 and

Pakistan on May 30, 1998 following detonations of nuclear explosive devices by those

countries. The sanctions, required under sec. 102 of the Arms Export Control Act

(AECA), terminated loans, credits, and military and non–humanitarian economic

assistance. On July 15, 1998, President Clinton signed into law a bill (P.L. 105-194)

that exempts agricultural credits from economic sanctions imposed pursuant to sec.

102(b) of the AECA. On Dec. 1, 1998, the President waived, until Oct. 21, 1999,

sanctions against lending in India and Pakistan by Overseas Private Investment

Corporation, the Export–Import Bank, and the Trade and Development Agency,

commercial bank activity, and military training; other sanctions remain in place,

including trade with specific Indian and Pakistani government, military, and business

entities and subsidiaries involved in nuclear or missile activities.5

See footnotes at end of table.
113

Table 5-15—Continued

Summary of major U.S. trade sanctions operative in 1998

Country Sanctions

Iran . . . . . . . . . . . . . . . . . . Trade, investment, and financial dealings with Iran by U.S. persons, wherever located,

generally are prohibited.

Iraq . . . . . . . . . . . . . . . . . . Virtually all other trade, investment, and financial dealings with Iraq are prohibited,

except trade provided for under UN Security Council Resolution 986 of 1995 permitting

Iraq to sell specific quantities of oil and to purchase specific humanitarian goods. All

assets of the Iraqi government subject to U.S. jurisdiction are blocked.

Libya . . . . . . . . . . . . . . . . Virtually all trade, whether direct or through third countries, and investment activities

with Libya by U.S. persons, wherever located, are prohibited. Also prohibited are

transactions that ultimately benefit Libya, including brokering third-country sales of

Libyan crude oil or transportation for Libyan cargo. Certain U.S. sales to Libya are

permitted, including the sale of parts and components to third countries where the U.S.

goods will be “substantially transformed” into new and different articles of commerce

prior to shipment to Libya, as well as the sale of goods that come to rest in the

inventory of a third–country distributor whose sales are not predominantly to Libya. All

assets of the Libya government subject to U.S. jurisdiction are blocked.

North Korea . . . . . . . . . . Virtually all trade, whether direct or through third countries, investment, and financial

dealings with North Korea by U.S. persons, wherever located, are prohibited. All

assets of North Korea and North Korean nationals subject to U.S. jurisdiction blocked.

Implementing regulations have been modified in recent years as a result of

commitments made to begin the normalization of bilateral relations.

Sudan . . . . . . . . . . . . . . . Virtually all trade (whether direct or through third countries) with Sudan by U.S.

persons, wherever located, are prohibited. All assets of Sudan subject to U.S.

jurisdiction are blocked. Financial transactions which pose a risk of furthering terrorist

acts in the United States prohibited.

Syria . . . . . . . . . . . . . . . . No trade sanctions. Sanctions prohibit financial transactions which pose a risk of

furthering terrorist acts in the United States.

1 Also known as the Helms-Burton Act in reference to the two members of Congress who were the main sponsors of the legislation, Senator Jesse Helms (R-NC) and Representative Dan Burton (R-IN) 2 Stuart E. Eizenstat, Under Secretary of State for Economic, Business, and Agricultural Affairs, Remarks on

the President’s Title III Decision Washington, DC, July 16, 1998. 3 For additional information on the impact of the Cuba sanctions on U.S.-EU relations, see the section on the

EU in ch. 4.

4 U.S. economic sanctions against the Federal Republic of Yugoslavia (Serbia and Montenegro) date back to

May 30, 1992; certain aspects of those sanctions were suspended in 1996, although asset subject to U.S. jurisdiction remained blocked.

5 Waiver granted under the authority of an amendment to P.L. 105-277. President, Presidential Determination

99-7, Dec. 1, 1998.

Notes.—Exceptions generally allow for $100 worth of merchandise brought into the United States as accompanied

baggage by authorized travelers, and for exports of certain humanitarian goods licensed for export and, in some

instances, certain informational material. For more details, see USITC, Overview and Analysis of Current U.S.

Unilateral Economic Sanctions, publication 3124, Aug. 1998.

Sources: Office of Foreign Assets Control, U.S. Department of the Treasury, compiled by the staff of the USITC

and WTO, “Overview of the State-of-Play of WTO Disputes,” found at Internet address http://www.wto.org/wto/dispute/bulletin.htm, retrieved Mar. 31, 1999. For detailed background information on the listed trade sanctions, see

USITC, The Year in Trade: OTAP, 1996, USITC publication 3024, April 1997 pp. 157–164.

APPENDIX

Statistical Tables
Table A-1

U.S. merchandise trade with European Union, by SITC numbers (revision 3), 1996-98

(1,000 dollars)

SITCsectionNo. Description 1996 

U.S. 

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,745,961 4,611 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,575,617 2,352 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,049,765 7,293 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,697,421 2,2454 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,594 245 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,018,280 17,406 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,864,553 9,007 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,328,374 65,948 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,106,949 16,539 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,072,131 5,90 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,719,310 131,75

U.S. 

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,860,308 3,021 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,474,811 3,862 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,350,670 1,503 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,254,085 3,924 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461,232 435 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,085,053 22,116 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,026,561 21,237 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,442,613 69,798 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,389,556 22,389 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,109,629 7,60 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141,454,518 155,89Note.—Because of rounding, figures may not add to the totals shown. The abbreviation, nesi, 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, 1996-98

(1,000 dollars)

Schedule B

No. Description 1996 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . 3,927,581 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 6,566,543 8803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,533,272 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,097,566 

8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,050,435 8708.99 Parts and accessories for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,345,029 8471.80 Other units of automated data processing machine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,912,643 7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder . . . . . . . . . . 2,426,527 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,348,784 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,391,811 9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, nesi . . . . . . . . 1,057,761 8411.12 Turbojets of a thrust exceeding 25kN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619,574 2701.12 Bituminous coal, whether or not pulverized, but not agglomerated . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,745,058 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . 1,514,978 

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, nesi . . . . . . . 456,889 3822.00 Composite diagnostic or laboratory reagents, except pharmaceuticals . . . . . . . . . . . . . . . . . . . . . . . . 980,463 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . 2,137,038 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 742,041 2402.20 Cigarettes containing tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,329,419 8411.99 Gas turbines parts, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605,805 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,019 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523,112 8479.89 Machines and mechanical appliances having individual functions, nesi . . . . . . . . . . . . . . . . . . . . . . . . 805,617 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209,155 

8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . 750,933 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,515,051 4All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,204,259 8

Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,719,310 13

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-3

Leading imports from the European Union, by HTS numbers, 1996-98

(1,000 dollars)

HTS No. Description 1996 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . 6,242,758 78703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,300,869 69801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,959,995 5

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, nesi . . . . . . . 1,311,324 28411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,268,191 38411.12 Turbojets of a thrust exceeding 25 kn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,154,345 28802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . 1,133,982 12934.90 Heterocyclic compounds nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,098,064 19999.95 “Estimated ” “low valued” “shipments” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,378,694 12710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and

preparations, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,476,395 2

9701.10 Paintings, drawings and pastels, executed entirely by hand, framed or not framed . . . . . . . . . . . . . . 1,331,901 18473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . 1,473,023 18803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,277,437 17102.39 Nonindustrial diamonds, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,501,938 17113.19 articles of jewelry and parts thereof, of precious metal (excluding silver) . . . . . . . . . . . . . . . . . . . . . . . 1,310,687 18542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,692,771 12933.90 Heterocyclic compounds with nitrogen hetero-atom(s) only, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455,329 8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . 1,069,409 18708.99 Parts and accessories for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,177,007 18471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 812,560 12204.21 Wine nesi of fresh grapes or fortified wine, in containers not over 2 liters . . . . . . . . . . . . . . . . . . . . . . 838,615 9706.00 Antiques of an age exceeding one hundred years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 692,654 2203.00 Beer made from malt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735,128 6403.99 Footwear not covering the ankles, with outer soles of rubber or plastics or composition leather and uppers of leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 771,720 

2933.59 Heterocyclic compounds containing a pyrimidine ring (hydrogenated or not) or a piperazine ring in the structure, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375,123 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,839,918 52

All Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,614,600 103Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141,454,518 155

Note.—Because of rounding, figures may not add to totals shown. The appreviation, nesi, stand for “not elsewhere specified or inSource: 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), 1996-98

(1,000 dollars)

SITCsectionNo. Description 1996 

U.S. 

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,499,424 5,921 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232,888 302 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,758,615 4,283 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,851,287 2,284 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173,639 225 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,334,840 12,716 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,058,037 18,737 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,785,287 73,658 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,869,949 13,339 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,558,877 3,34 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,122,843 134,79

U.S. 

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,663,389 7,411 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,345 812 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,314,720 11,953 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,775,287 17,884 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404,754 375 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,530,839 9,516 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,833,114 27,307 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,327,222 72,068 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,992,086 10,309 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,706,847 10,25 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,298,602 167,88Note.—Because of rounding, figures may not add to the totals shown. The abbreviation, nesi, 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, 1996-98

(1,000 dollars)

Schedule B

No. Description 1996 8708.29 Parts and accessories of bodies (Including cabs) for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . 4,410,316 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,231,410 8708.99 Parts and accessories for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,126,957 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,509,281 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc 2,347,422 8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,041,641 8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,027,978 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,042,655 8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,094,039 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified

by kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,413,696 

8471.50 Digital processing units other than those of 847141 and 847149 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,053,101 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . 1,387,637 8701.20 Road tractors for semi-trailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789,893 8708.39 Brakes and servo-brakes and parts for motor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 989,663 8803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770,964 9032.89 Automatic regulating or controlling Instruments and apparatus, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . 710,810 7606.12 Rectangular plates, sheets and strip, over 02 mm thick, of aluminum alloy . . . . . . . . . . . . . . . . . . . . . . . 756,696 4901.99 Printed books, brochures, leaflets and similar printed matter, other than in single sheet . . . . . . . . . . . . 731,383 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . 611,969 8408.20 Compression-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 612,196 9401.90 Parts of seats (except medical, barbers, dentist, etc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619,510 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382,305 3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, nesi . . . . . . . . . 520,965 8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518,668 2710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and

preparations, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 620,363 

 Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,321,518 

 All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,801,325  Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,122,843 1Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or includeSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-6

Leading imports from Canada, by HTS numbers, 1996-98

(1,000 dollars)

HTS No. Description 1996 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,372,032 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or

returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,847,162 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,087,297 4407.10 Coniferous wood sawn or chipped lengthwise, sliced or peeled, of thickness exceeding 6mm . . . . . . . . . . . 6,251,623 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,367,016 8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,839,170 

2711.21 Natural gas, gaseous state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,914,607 4801.00 Newsprint, in rolls or sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,019,150 8708.99 Parts and accessories for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,198,181 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,364,805 9999.95 Estimated ”low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,530,975 8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . . 1,712,136 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,809,672 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,599,083 8701.20 Road tractors for semi-trailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,337,175 2710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and preparations, nesi . . . . . 2,482,415 8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . . . . . . . . . . . . . . . 996,569 4703.21 Chemical woodpulp, soda or sulfate, other than dissolving grades, semibleached or bleached, 

coniferous wood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,654,302 

7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder . . . . . . . . . . . . . . . . . 1,631,647 7601.20 Unwrought aluminum alloys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,187,692 4802.60 Paper nesi, over 10% (weight) fiber obtained by mechanical process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,049,533 2716.00 Electrical energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 901,670 4410.11 Waferboard, including oriented strand board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595,772 8803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 662,494 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 902,454  Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,314,633  All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,983,969  Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,298,602 1Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-7

U.S. merchandise trade with Japan, by SITC numbers (revision 3), 1996-98

(1,000 dollars)

SITCsectionNo. Description 1996 

U.S. 

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,795,879 91 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,051,428 22 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,308,149 53 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,107,921 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,567 5 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,769,207 66 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,758,885 37 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,466,945 248 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,015,383 89 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,196,440 1 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,584,804 62

U.S. 

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,857 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,428 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,687 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,145 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,222 5 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,575,384 66 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,768,200 77 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,143,404 918 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,385,310 119 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,164,619 2 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,762,256 120Note.—Because of rounding, figures may not add to the totals shown. The abbreviation, nesi, stands for “not elsewhere specified Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-8

Leading exports to Japan, by Schedule B numbers, 1996-98

(1,000 dollars)

Schedule B

No. Description 1996 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,375,657 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . 1,927,463 8803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,143,732 2402.20 Cigarettes containing tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,523,004 1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,454,811 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,265,932 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . 735,428 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,142,637 8708.99 Parts and accessories for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556,841 4403.20 Coniferous wood in the rough, not treated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,640,238 0201.30 Meat of bovine animals, boneless, fresh or chilled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763,590 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified

by kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745,691 

0202.30 Meat of bovine animals, boneless, frozen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633,658 2844.20 Uranium and its compounds enriched in u235; plutonium and its compounds . . . . . . . . . . . . . . . . . . . . . . . 554,280 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 656,381 8479.89 Machines and mechanical appliances having individual functions, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 876,988 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536,320 

1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 644,957 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,604,034 

9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, nesi . . . . . . . . . . . . . 405,668 8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,614 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286,316 8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335,601 8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607,563 9018.39 Medical etc needles nesi, catheters, cannulae and the like; parts and accessories thereof . . . . . . . . . . . . 338,919 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,056,320 

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,528,484 Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,584,804 

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-9

Leading imports from Japan, by HTS numbers, 1996-98

(1,000 dollars)

HTS No. Description 1996 

8703.23 Passenger Motor Vehicles with Spark-ignition Internal-combustion reciprocating piston engine,

cylinder over 1,000 but over 1,500 Cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,189,833 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,101,828 

8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,233,546 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,174,903 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . 4,375,585 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,370,690 9504.10 Video games used with television receiver and parts and accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,224,379 8525.40 Still image video cameras and other video camera recorders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,712,237 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported

or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,322,975 

8803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739,935 8708.99 Parts and accessories for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,475,146 9009.12 Electrostatic Photocopying Apparatus, Operating by Reproducing the Original Image via

intermediate onto the copy (indirect process) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,376,542 

9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 759,186 8479.89 Machines and mechanical appliances having individual functions, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,016,430 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,504 8429.52 Self-propelled mechanical shovels and excavators, with a 360-degree revolving superstructure . . . . . . . 525,271 9009.90 Parts and accessories of photocopying apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 948,755 8521.10 Magnetic tape-type video recording or reproducing apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 811,372 8708.40 Gear boxes for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650,966 8457.10 Machining centers for working metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 586,973 8409.91 Parts for spark-ignition internal-combustion piston engines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777,974 9102.11 Wrist watches, with battery, mechanical display, of base metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653,728 8523.13 Prepared unused magnetic tapes for sound recording, of a width exceeding 65mm . . . . . . . . . . . . . . . . . . 538,017 8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,843 8407.34 Reciprocating spark-inition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . . 554,050  Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,195,668 

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,566,588 Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,762,256 1

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-10

U.S. merchandise trade with Mexico, by SITC numbers (revision 3), 1996-98

(1,000 dollars)

SITCsectionNo. Description 1996 

U

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,547,511 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,654 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,455,237 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,504,694 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322,546 5 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,062,163 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,049,697 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,080,540 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,316,266 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,279,557  Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,685,865 

U

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,650,835 1 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528,479 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 961,686 3 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,024,077 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,813 5 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,578,881 6 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,628,895 7 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,596,350 8 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,237,485 9 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,949,618  Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,179,119 Note.—Because of rounding, figures may not add to the totals shown. The abbreviation, nesi, stands for “not elsewhere specified Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-11

Leading exports to Mexico, by Schedule B numbers, 1996-98

(1,000 dollars)

Schedule B

No. Description 1996 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,951,768 8708.99 Parts and accessories for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,868,127 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,007,352 8540.11 Cathode-ray television picture tubes, color, including monitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 917,180 2710.00 Petroleum oils and oils obtained from bituminous minerals, other than crude; and preparations, nesi . . . . 988,223 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . 834,572 3926.90 Articles of plastics and articles of other materials of headings 3901 to 3914, nesi . . . . . . . . . . . . . . . . . . . . . 880,137 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 590,874 

8538.90 Parts for electrical apparatus for electrical circuits; for electrical control nesi . . . . . . . . . . . . . . . . . . . . . . . . . 697,303 8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335,552 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 858,812 7326.90 Articles of iron or steel, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536,455 9401.90 Parts of seats (except medical, barbers, dentist, etc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442,382 8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566,752 8544.30 Insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships . . . . . . . . . . 685,678 8534.00 Printed circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528,647 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,799 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,782 5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257,238 1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,011,698 8536.90 Electrical apparatus for switching or protecting electrical circuits, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522,885 4819.10 Cartons, boxes and cases corrugated paper and paperboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471,489 8503.00 Parts of electric motors, generators and sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390,693 9809.00 Export transactions valued not more than $10,000, not indentified by kind . . . . . . . . . . . . . . . . . . . . . . . . . . . 141,898 8479.89 Machines and mechanical appliances having individual functions, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267,818 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,123,115 

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,562,750 

 Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,685,865 Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-12

Leading imports from Mexico, by HTS numbers, 1996-98

(1,000 dollars)

HTS No. Description 1996 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,972,387 

2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,032,759 8544.30 Insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships . . . . . . . . . 3,013,814 8528.12 Incomplete or unfinished color reception apparatus for televisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,725,954 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,267,745 

9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,043,373 8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross vehicle weight not exceeding 5 mt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,176,852 

8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 601,535 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . 924,133 8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc . . . . . . . . . . . . . . . . . . . . 1,372,663 9401.90 Parts of seats (except medical, barbers, dentist, etc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938,360 8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU, keyboard and display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,034,153 

6203.42 Men’s or boys’ trousers, bib and brace overalls, breeches and shorts not knitted or crocheted,

of cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745,376 

8527.21 Radiobroadcast receivers for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,005,551 8525.10 Transmission apparatus for radio or television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,081,821 6204.62 Women’s or girls’ trousers, etc, of cotton, not knitted or crocheted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451,217 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . 440,634 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . 782,156 9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498,012 9032.89 Automatic regulating or controlling instruments and apparatus, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,009 8504.40 Static converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,035 6109.10 T-shirts, singlets, tank tops and similar garments, of cotton, knitted or crocheted . . . . . . . . . . . . . . . . . . . . 370,738 8501.40 AC motors nesoi, single-phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451,017 8708.21 Safety seat belts for motor-vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 702,186 8708.99 Parts and accessories for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774,685 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,324,164 

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,854,955 Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,179,119 

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: 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), 1996-98

(1,000 dollars)

SITCsectionNo. Description 1996 

U.S. exp

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769,631 391 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,173 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,871,381 1,633 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,587 224 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113,629 165 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,722,182 1,926 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 783,853 807 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,464,882 6,388 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 847,386 829 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . 157,540 15 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,801,243 12,53

U.S. imp

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 655,224 721 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,168 12 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376,751 483 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462,465 394 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,549 5 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,077,181 1,296 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,548,265 5,767 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,813,261 17,368 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,819,465 35,419 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . 434,046 53 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,209,376 61,99Note.—Because of rounding, figures may not add to the totals shown. The abreviation, “nesi”, 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, 1996-98

(1,000 dollars)

Schedule B

No. Description 1996 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . . 1,310,778 3100.00 Fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 891,052 1507.10 Soybean oil and fractions, crude, whether or not degummed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,135 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414,476 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . 67,825 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,933 8803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166,991 8802.60 Spacecraft including satellites and spacecraft launch vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,674 2304.00 Soybean oilcake and other solid residue, whether or not ground . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,700 8471.50 Digital processing units other than those of 8471.41 and 8471.49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,176 4804.11 Kraftliner, uncoated, unbleached, in rolls or sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,362 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc, nesi . . . . . . . . . . . . . . . . . . . . . . . . 157,737 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . 76,641 8431.43 Parts for boring or sinking machinery, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,537 8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,077 5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 727,497 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,873 4101.21 Raw hides and skins of bovine animals, nesi, fresh or wet-salted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,569 8479.89 Machines and mechanical appliances having individual functions, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . 136,439 8406.90 Parts for steam and other vapor turbines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,837 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,183 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,194 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,425 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,117 

4703.21 Chemical woodpulp, soda or sulfate, other than dissolving grades, semibleached or bleached, coniferous wood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,917 

 Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,117,144 

 All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,684,099  Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,801,243 Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-15

Leading imports from China, by HTS numbers, 1996-98

(1,000 dollars)

HTS No. Description 1996 

6403.99 Footwear not covering the ankles, with outer soles of rubber or plastics or composition leather

and uppers of leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,122,236 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,351,827 6402.99 Footwear with outer soles and uppers of rubber or plastics nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,472,666 9503.90 Other toys and models, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,436,373 9503.41 Stuffed toys, representing animals or non-human creatures, and parts and accessories . . . . . . . . . . . . . . . . . 994,784 8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 674,960 6403.91 Footwear covering the ankles, with outer soles and uppers of rubber or plastics, excluding

waterproof footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 953,078 

9502.10 Dolls representing only human beings and parts and accessories thereof, whether or not dressed . . . . . . . . 998,797 9505.10 Articles for Christmas festivities and parts and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755,140 8517.11 Line telephone sets with cordless handsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490,597 8527.13 Other radiobroadcast apparatus combined with sound recording or reproducing apparatus . . . . . . . . . . . . . . 693,448 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580,485 8504.40 Static converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434,200 9503.49 Other toys, representing animals or non-human creatures, and parts and accessories . . . . . . . . . . . . . . . . . . 529,105 6110.90 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of textile materials nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599,558 4202.92 Trunks, cases, bags and similar containers, with outer surface of plastic sheeting or of textile materials . . . 565,907 8527.31 Radiobroadcast receivers nesi, combined with sound recording or reproducing apparatus . . . . . . . . . . . . . . . 305,011 9504.90 Game machines except coin-operated; board games; mah-jog; dominoes; dice . . . . . . . . . . . . . . . . . . . . . . . . 441,154 4203.10 Articles of apparel of leather or composition leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,275 8519.99 Sound reproducing apparatus, other than cassett type, nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,217 9403.60 Wooden furniture, other than of a kind used in the bedroom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287,531 9503.70 Toys, put up in sets or outfits and parts and accessories, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442,619 6404.19 Footwear, with outer soles of rubber or plastics and uppers of textile materials, excluding athletic wear . . . . 302,086 6702.90 Artificial flowers, foliage and fruit and parts thereof, and articles made up of artificial flowers, foliage

or fruit, of materials other than plastics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410,477 

4202.22 Handbags with outer surface of plastic sheeting or textile materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386,913 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,179,442 

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,029,933 Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,209,376 

Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-16

U.S. merchandise with Taiwan, by SITC numbers (revision 3), 1996-98

(1,000 dollars)

SITCsectionNo. Description 1996 

U.S. expo

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,888,389 1,5681 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,744 1632 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,602,357 1,5613 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,772 2364 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,702 155 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,307,854 2,4246 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,067,385 1,0287 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,631,698 9,7998 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,444,697 1,6869 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . 470,701 399 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,920,298 18,882

U.S. impo

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278,041 2941 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,305 62 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,751 1273 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,128 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,399 35 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402,112 4256 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,756,175 4,0957 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,032,603 20,4478 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,736,369 6,5189 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . 475,152 556 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,797,035 32,474Note.—Because of rounding, figures may not add to the totals shown. The abbreviation, nesi, stands for “not elsewhere specifieSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-17

Leading exports to Taiwan, by Schedule B numbers, 1996-98

(1,000 dollars)

Schedule B

No. Description 1996 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . 662,099 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 769,423 18479.89 Machines and mechanical appliances having individual functions, nesi . . . . . . . . . . . . . . . . . 470,327 8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363,400 8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg . . . . . . . 0 8803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394,120 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . 248,316 1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 962,061 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 776,798 8456.91 Machine tools nesi for dry etching patterns on semiconductor materials . . . . . . . . . . . . . . . . 228,526 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified by kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213,897 

8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,273 9306.90 Bombs, grenades, torpedoes, mines, missiles, etc, and parts . . . . . . . . . . . . . . . . . . . . . . . . . 214,913 1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214,490 4101.21 Raw hides and skins of bovine animals, nesi, fresh or wet-salted . . . . . . . . . . . . . . . . . . . . . . 173,731 8479.90 Parts of machines and mechanical appliances having individual functions, nesi . . . . . . . . . 118,737 8710.00

Tanks and other armored fighting vehicles, motorized, whether or not fitted with weapons, and parts of such vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,217 

8542.14 Circuits obtained by bipolar technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263,679 5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,509 9030.82 Other instruments and apparatus for measuring or checking semiconductor wafers or devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,609 9031.4 Optical instruments for inspecting semiconductor wafers or devices or photomasks or reticles used in manufacturing these items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,193 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder capacity over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482,805 

8517.90 Parts of telephonic or telegraphic apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,047 8466.93 Parts and accessories for machine tools, for laser operation, metalworking machining centers, lathes and drilling machines, etc., nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,438 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . 176,131  Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,144,739 8

 All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,775,559 10 Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,920,298 18Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified.”Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-18

Leading imports from Taiwan, by HTS numbers, 1996-98

(1,000 dollars)

HTS No. Description 1996 

8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . 3,832,695 4,8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . 2,150,889 2,8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,031,877 2,8471.30 Portable digital automated data processing machines not exceeding 10 kg, with

at least . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 984,759 1,

8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565,027 8525.10 Transmission apparatus for radio or television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351,014 8534.00 Printed circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506,159 8471.80 Other units of automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347,292 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229,545 8504.40 Static converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373,709 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals . . . . 243,168 6110.30 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or . . . . . . . 298,539 8517.50 Other apparatus for carrier-current line systems or for digital line systems . . . . . . . . . . . . . . 228,471 8712.00 Bicycles and other cycles (including delivery tricycles), not motorized . . . . . . . . . . . . . . . . . . 320,944 9999.95 Estimated “low valued” shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,169 7318.15 Threaded screws and bolts, of iron or steel, nesi, whether or not with their nuts or . . . . . . . 287,754 8481.80 Taps, cocks, valves and similar appliances, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226,360 7318.14 Self-tapping screws of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201,473 8414.51 Table, floor, wall, window, ceiling or roof fans, with a self-contained electric motor of . . . . . 242,661 9506.91 Gymnasium, playground or other exercise articles and equipment; parts and . . . . . . . . . . . 399,401 9403.60 Wooden furniture, other than of a kind used in the bedroom . . . . . . . . . . . . . . . . . . . . . . . . . . 227,416 9403.20 Metal furniture, other than of a kind used in offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,055 8465.91 Sawing machines for working wood, cork, bone, hard rubber, hard plastics, etc . . . . . . . . . 144,953 8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, nesi . . . . . . . . . . . . . . 161,743 7318.16 Nuts, threaded, of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167,812  Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,942,885 17,

 All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,854,151 15, Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,797,035 32,Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: 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), 1996-98

(1,000 dollars)

SITCsectionNo. Description 1996 

U.S. ex

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,490,823 1,51 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197,183 22 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,645,975 2,53 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736,105 64 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,588 5 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,576,711 2,46 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,454,480 1,37 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,316,061 12,68 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,245,938 2,29 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . 710,541 4 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,433,405 24,2

U.S. im

0 Food and live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,845 11 Beverages and tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,527 2 Crude materials, inedible, except fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,846 13 Mineral fuels, lubricants and related materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,944 4 Animal and vegetable oils, fats and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,397 5 Chemicals and related products, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494,916 56 Manufactured goods classified chiefly by material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,218 2,47 Machinery and transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,437,528 15,58 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,555,100 3,49 Commodities and transactions not classified elsewhere in the SITC . . . . . . . . . . . . . . . . . . . . . . . . 444,275 4 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,531,596 22,9Note.—Because of rounding, figures may not add to the totals shown. The abbreviation, nesi, 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, 1996-98

(1,000 dollars)

Schedule B

No. Description 1996 8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 923,321 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg . . . . . . . . . . . . . . . . . . . . . . . . . 1,393,126 8803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643,830 1005.90 Corn (maize), other than seed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,259,806 1201.00 Soybeans, whether or not broken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438,684 5201.00 Cotton, not carded or combed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256,601 4101.21 Raw hides and skins of bovine animals, nesi, fresh or wet-salted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457,249 8479.89 Machines and mechanical appliances having individual functions, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . 873,948 8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,148 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . 365,600 1001.90 Wheat and meslin, excluding durum wheat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328,082 8411.91 Parts for turbojets or turbopropellers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,942 8708.99 Parts and accessories for motor vehicles, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,418 8542.14 Circuits obtained by bipolar technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419,652 9880.00 Estimate of non-Canadian low value export shipments; compiled low value and not identified

by kind shipments to Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244,075 

8479.90 Parts of machines and mechanical appliances having individual functions, nesi . . . . . . . . . . . . . . . . . . 385,349 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529,926 8431.43 Parts for boring or sinking machinery, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,278 9306.90 Bombs, grenades, torpedoes, mines, missiles, etc, and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,028 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc, nesi . . . . . . . . . . . . . . . . . . . . . . . 147,848 7204.49 Ferrous waste and scrap, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281,587 8802.12 Helicopters of an unladen weight exceeding 2,000 kilograms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,799 3100.00 Fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,501 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . 305,280 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173,180 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,037,260 

 Total others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,396,145  Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,433,405 Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified.”Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-21

Leading imports from Korea, by HTS numbers, 1996-98

(1,000 dollars)

HTS No. Description 1996 

8542.13 Metal oxide semiconductors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,479,323 8473.30 Parts and accessories for automated data processing machines and units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,940,961 8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine,

cylinder capacity over 1,500 but not over 3,000 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,259,739 

8471.60 Input or output units for automated data processing machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,487,729 8525.20 Transmission apparatus incorporating reception apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176,416 8471.70 Automatic data processing storage units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231,475 8516.50 Microwave ovens of a kind used for domestic purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,822 9801.00 U.S. articles exported and returned, not advanced or improved in condition; animals exported

or returned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360,447 

6110.30 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of

man-made fibers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,541 

8542.30 Other monolithic integrated circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 401,436 6201.93 Men’s or boys’ anoraks, windbreakers, and similar articles, of man-made fibers . . . . . . . . . . . . . . . . . . . . . . . . . 180,870 8429.52 Self-propelled mechanical shovels and excavators, with a 360-degree revolving superstructure . . . . . . . . . . . 115,381 8521.10 Magnetic tape-type video recording or reproducing apparatus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272,659 8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,534 4011.10 New pneumatic tires, of rubber, of a kind used on motor cars, including sation wagons and racing cars . . . . . 92,273 8803.30 Parts of airplanes or helicopters, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,184 8471.49 Other digital automated data processing machines, entered in the form of systems . . . . . . . . . . . . . . . . . . . . . . 163,700 8534.00 Printed circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,600 8703.22 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine over

1,000 but not over 1,500 cc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 586,827 

7214.20 Concrete reinforcing bars and rods, of iron or nonalloy steel, not further worked than forged or

hot-rolled, -dawn, or -extruded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,981 

7117.19 Imitation jewelry nesi, of base metal, whether or not plated with precious metal . . . . . . . . . . . . . . . . . . . . . . . . . 97,388 6205.30 Men’s or boys’ shirts, of manmade fibers, not knitted or crocheted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,212 4801.00 Newsprint, in rolls or sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,489 8523.13 Prepared unused magnetic tapes for sound recording, of a width exceeding 6.5mm . . . . . . . . . . . . . . . . . . . . . 146,984 4011.20 New pneumatic tires, of rubber, of a kind used on buses or trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,992 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,982,967 

 All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,548,629  Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,531,596 Note.—Because of rounding, figures may not add to totals shown. The abbreviation, nesi, stands for “not elsewhere specified or inSource: Compiled from official statistics of the U.S. Department of Commerce.
Table A-22

Preliminary and final phase antidumping cases active in 1998, filed under authority of title VII of the Tariff Act of 19and by USITC investigation number

(Affirmative (A); Negative (N))

Date Preliminary phase Final phase

USITC original determination determination Investigation Country petition 

No. Product of origin filed Commission ITA1 ITA1 Commissi

Affirmative

731-TA-762 Static random access memory

semiconductors Taiwan Feb. 25, 1997 A A A A 

. . . . . . . . . . . . . . . . . . . . . . . . . 

731-TA-768 Fresh atlantic salmon Chile June 12, 1997 A A A A 

. . . . . . . . . . . . . . . . . . . . . . . . 

731-TA-770 Stainless steel wire rod Italy July 30, 1997 A A A A 

. . . . . . . . . . . . . . . . . . . . . . . 

731-TA-771 Stainless steel wire rod Japan July 30, 1997 A A A A 

. . . . . . . . . . . . . . . . . . . . . 

731-TA-772 Stainless steel wire rod Korea July 30, 1997 A A A A 

. . . . . . . . . . . . . . . . . . . . . 

731-TA-773 Stainless steel wire rod Spain July 30, 1997 A A A A 

. . . . . . . . . . . . . . . . . . . . . 

731-TA-774 Stainless steel wire rod Sweden July 30, 1997 A A A A 

. . . . . . . . . . . . . . . . . . . 

731-TA-775 Stainless steel wire rod Taiwan July 30, 1997 A A A A 

. . . . . . . . . . . . . . . . . . . . 

731-TA-776 Certain preserved mushrooms Chile Jan. 6, 1998 A A A A 

. . . . . . . . . . . . . . . . 

Negative

731-TA-761 Static random access memory

semiconductors Korea Feb. 25, 1997 A A A N 

. . . . . . . . . . . . . . . . . . . . . . . . . . 

731-TA-763 Carbon steel wire rod Canada Feb. 26, 1997 A A A N 

. . . . . . . . . . . . . . . . . . . . . 

731-TA-764 Carbon steel wire rod Germany Feb. 26, 1997 A A A N 

. . . . . . . . . . . . . . . . . . . . 

731-TA-765 Carbon steel wire rod Trinidad & Tobago Feb. 26, 1997 A A A N 

. . . . . . . . . . . . . 

731-TA-766 Carbon steel wire rod Venezuela Feb. 26, 1997 A A A N 

. . . . . . . . . . . . . . . . . . . 

731-TA-769 Stainless steel wire rod Germany July 30, 1997 A A A N 

. . . . . . . . . . . . . . . . . . 

731-TA-780 Butter cookies Denmark Feb. 6, 1998 N (3) (3) (3 . . . . . . . . . . . . . . . . . . . . . . . . . . ) 

In Progress

731-TA-777 Certain preserved mushrooms China Jan. 6, 1998 A A A (4) 

. . . . . . . . . . . . . . . 

731-TA-778 Certain preserved mushrooms India Jan. 6, 1998 A A A (4) 

. . . . . . . . . . . . . . . . 

731-TA-779 Certain preserved mushrooms Indonesia Jan. 6, 1998 A A A (4) 

. . . . . . . . . . . . 

731-TA-781 Stainless steel round wire Canada Mar. 27, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . 

731-TA-782 Stainless steel round wire India Mar. 27, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . . 

731-TA-783 Stainless steel round wire Japan Mar. 27, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . 

731-TA-784 Stainless steel round wire Korea Mar. 27, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . 

731-TA-785 Stainless steel round wire Spain Mar. 27, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . 

731-TA-786 Stainless steel round wire Taiwan Mar. 27, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . 

731-TA-787 Extruded rubber thread Indonesia Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . 

731-TA-788 Certain stainless steel plate Belgium Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . 

731-TA-789 Certain stainless steel plate Canada Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . 

731-TA-790 Certain stainless steel plate Italy Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . 

731-TA-791 Certain stainless steel plate Korea Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . 

731-TA-792 Certain stainless steel plate South Africa Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . 

731-TA-793 Certain stainless steel plate Taiwan Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . 

731-TA-794 Certain emulsion styrenebutadiene rubber Brazil Apr. 1, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . 

See footnotes at end of table.
Table A-22—Continued

Preliminary and final phase antidumping cases active in 1998, filed under authority of title VII of the Tariff Act of 19and by USITC investigation number

(Affirmative (A); Negative (N))

Date Preliminary phase Final phase

USITC original determination determination Investigation Country petition 

No. Product of origin filed Commission ITA1 ITA1 Commissi

In Progress

731-TA-795 Certain emulsion styrenebutadiene rubber Korea Apr. 1, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . 

731-TA-796 Certain emulsion styrenebutadiene rubber Mexico Apr. 1, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . 

731-TA-797 Certain stainless steel sheet & strip France June 10, 1998 A A (4) (4) 

. . . . . . . . . . 

731-TA-798 Certain stainless steel sheet & strip Germany June 10, 1998 A A (4) (4) 

. . . . . . . . 

731-TA-799 Certain stainless steel sheet & strip Italy June 10, 1998 A A (4) (4) 

. . . . . . . . . . . . . 

731-TA-800 Certain stainless steel sheet & strip Japan June 10, 1998 A A (4) (4) 

. . . . . . . . . . . 

731-TA-801 Certain stainless steel sheet & strip Korea June 10, 1998 A A (4) (4) 

. . . . . . . . . . . 

731-TA-802 Certain stainless steel sheet & strip Mexico June 10, 1998 A A (4) (4) 

. . . . . . . . . . 

731-TA-803 Certain stainless steel sheet & strip Taiwan June 10, 1998 A A (4) (4) 

. . . . . . . . . . 

731-TA-804 Certain stainless steel sheet & strip United Kingdom June 10, 1998 A A (4) (4) 

. . 

731-TA-805 Elastic rubber tape India Aug. 18, 1998 A (4) (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . . 

731-TA-806 Certain hot-rolled steel products Brazil Sept. 30, 1998 A (4) (4) (4) 

. . . . . . . . . . . . . 

731-TA-807 Certain hot-rolled steel products Japan Sept. 30, 1998 A (4) (4) (4) 

. . . . . . . . . . . . . 

731-TA-808 Certain hot-rolled steel products Russia Sept. 30, 1998 A (4) (4) (4) 

. . . . . . . . . . . . 

731-TA-811 DRAMS of one megabit and above Taiwan Oct. 22, 1998 A (4) (4) (4) 

. . . . . . . . . . 

731-TA-812 Live cattle Canada Nov. 12, 1998 (4) (4) (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

731-TA-813 Live cattle Mexico Nov. 12, 1998 (4) (4) (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1 U.S. Department of Commerce, International Trade Administration (ITA).2 For cases in which the final action was taken by the ITA, the date shown is the Federal Register notice date of that action. 

final action was taken by the USITC, the date of the USITC notification of Commerce is shown. 3 Not applicable.

4 Pending.

Note 1.—Inv. No. 731-TA-767 (Ultra high temperature milk from Chile) was withdrawn.Note 2.—Invs. Nos. 731-TA-809 & 810 (live cattle from Canada & Mexico) were withdrawn and then refiled as Invs. Nos. 731-TA-8

Source: Compiled by the staff of the U.S. International Trade Commission.
139

Table A-23

Antidumping orders and findings in effect as of Dec. 31, 1998

Effective date of

Country and commodity original action

Argentina:

Oil country tubular goods Aug. 11, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Seamless line and pressure pipe Aug. 3, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Silicon metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 26, 1991

Rectangular tubing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 26, 1989

Barbed wire and barbless wire strand Nov. 13, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Carbon steel wire rod Nov. 23, 1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Armenia: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Australia:

Corrosion-resistant carbon steel flat products Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Canned Bartlett pears 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 23, 1973

Austria: Railway track maintenance equipment 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 17, 1978

Azerbaijan: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Bangladesh: Cotton shop towels Mar. 20, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Belarus-Baltic: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Belgium:

Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Industrial phosphoric acid Aug. 20, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 13, 1979

Brazil:

Seamless line and pressure pipe Aug. 3, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 21, 1995

Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 22, 1994

Ferrosilicon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 14, 1994

Stainless steel wire rod Jan. 28, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Hot-rolled lead and bismuth carbon steel products Mar. 22, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Malleable cast iron pipe fittings May 21, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Iron construction castings May 9, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Canada:

Corrosion-resistant carbon steel flat products Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Pure and alloy magnesium Aug. 31, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . New steel rails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1989

Color picture tubes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 7, 1988

Brass sheet and strip Jan. 12, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Oil country tubular goods June 16, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iron construction castings Mar. 5, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Red raspberries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 24, 1985

Sugar and syrup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 9, 1980

Racing plates (aluminum horseshoes) 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 27, 1974

Elemental sulfur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 17, 1973

Steel jacks 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 13, 1966

Chile:

Certain preserved mushrooms Dec. 2, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fresh Atlantic salmon July 30, 1998. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fresh cut flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 20, 1987

China:

Collated roofing nails Nov. 19, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Crawfish tail meat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 15, 1997

Persulfates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 7, 1997

Brake rotors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 17, 1997

Melamine institutional dinnerware Feb. 25, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 14, 1996

Manganese metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 6, 1996

Furfuryl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 21, 1995

See footnote at end of table.
140

Table A-23—Continued

Antidumping orders and findings in effect as of Dec. 31, 1998

Effective date of

Country and commodity original action

China—Continued:

Pure magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 12, 1995

Glycine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 29, 1995

Coumarin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 9, 1995

Cased pencils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 28, 1994

Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 22, 1994

Paper clips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 25, 1994

Fresh garlic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 16, 1994

Sebacic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1994

Helical spring lock washers Oct. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Compact ductile iron waterworks fittings Sept. 7, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ferrosilicon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 11, 1993

Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 19, 1992

Carbon steel butt-weld pipe fittings July 6, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Tungsten ore concentrates Nov. 21, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chrome-plated lug nuts Sept. 20, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sparklers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 18, 1991

Silicon metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 10, 1991

Sulfur chemicals (sodium thiosulfate) Feb. 19, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Heavy forged hand tools Feb. 19, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Industrial nitrocellulose July 10, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tapered roller bearings June 15, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Porcelain-on-steel cookware Dec. 2, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Petroleum wax candles Aug. 28, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iron construction castings May 9, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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

Greig polyester cotton print cloth Sept. 16, 1983 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Colombia: Fresh cut flowers Mar. 18, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ecuador: Fresh cut flowers Mar. 18, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Estonia: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Finland:

Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rayon staple fiber 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 21, 1979

France:

Calcium aluminate flux June 13, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless steel wire rod Jan. 28, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corrosion-resistant carbon steel flat products Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled lead and bismuth carbon steel products Mar. 22, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Antifriction 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

Large power transformers 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 14, 1972

Georgia: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Germany:

Large newspaper printing presses and components Sept. 4, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Seamless line and pressure pipe Aug. 3, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cold-rolled carbon steel flat products Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Corrosion-resistant carbon steel flat products Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled lead and bismuth carbon steel products Mar. 22, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sulfur chemicals (sodium thiosulfate) Feb. 19, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Industrial nitrocellulose July 10, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Industrial belts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 14, 1989

Antrifriction bearings May 15, 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brass sheet and strip Mar. 6, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

See footnote at end of table.
141

Table A-23—Continued

Antidumping orders and findings in effect as of Dec. 31, 1998

Effective date of

Country and commodity original action

Germany—Continued:

Barium carbonate, precipitated 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 25, 1981

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 13, 1979

Animal glue and inedible gelatin 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 22, 1977

Greece: Electrolytic manganese dioxide Apr. 17, 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Hungary: Tapered roller bearings June 19, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

India:

Stainless steel bar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 21, 1995

Stainless steel flanges Feb. 9, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Stainless steel wire rod Dec. 1, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 2, 1993

Welded carbon steel pipe and tube May 12, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Indonesia:

Melamine institutional dinnerware Feb. 25, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Iran: Raw pistachios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 17, 1986

Israel:

Industrial phosphoric acid Aug. 19, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Oil country tubular goods Mar. 6, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Italy:

Stainless steel wire rod Sept. 15, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Certain pasta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 24, 1996

Oil country tubular goods. Aug. 11, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Seamless line and pressure pipe Aug. 3, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Grain-oriented electric steel Aug. 12, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Industrial belts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 14, 1989

Antifriction bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Granular polytetrafluoroethylene resin Aug. 30, 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Brass sheet and strip Mar. 6, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Brass fire protection equipment Mar. 1, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Pressure sensitive tape Oct. 21, 1977 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Large power transformers 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 14, 1972

Japan:

Stainless steel wire rod Sept. 15, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Vector supercomputers Oct. 24, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Gas tubro-compressor systems June 16, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Large newspaper printing presses and components Sept. 4, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Clad steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 2, 1996

Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 14, 1996

Oil country tubular goods. Aug. 11, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Stainless steel bar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 21, 1995

Grain-oriented electric steel June 10, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Defrost timers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 2, 1994

Corrosion-resistant carbon steel flat products Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Electric cutting tools July 12, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

EL flat panel displays Sept. 4, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Gray portland cement and cement clinker May 10, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Benzyl paraben . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 13, 1991

Laser light-scattering instruments Nov. 19, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Industrial nitrocellulose July 10, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Mechanical transfer presses Feb. 16, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Drafting machines and parts thereof Dec. 29, 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Telephone systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 11, 1989

Industrial belts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 14, 1989

Antifriction bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Electrolytic manganese dioxide April 17,1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Microdisks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 3, 1989

Granular polytetrafluoroethylene resin Aug. 24, 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Brass sheet and strip Aug. 12, 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Nitrile rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 16, 1988

Forklift trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 7, 1988

Stainless steel butt-weld pipe fittings Mar. 25 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Color picture tubes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 7, 1988

Tapered roller bearings over 4 inches Oct. 6, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

See footnote at end of table.
142

Table A-23—Continued

Antidumping orders and findings in effect as of Dec. 31, 1998

Effective date of

Country and commodity original action

Japan—Continued:

Malleable cast-iron pipe fittings July 6, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Carbon steel butt-weld pipe fittings Feb. 10, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cellular mobile telephones and subassemblies Dec. 19, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Calcium hypochlorite Apr. 18, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

High powered microwave amplifiers 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 20, 1982

Steel wire strand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 8, 1978

Impression fabric of man-made fibers 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 25, 1978

Melamine in crystal form Feb. 2, 1977 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Acrylic sheet 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 30, 1976

Tapered roller bearings 4 inches and under Aug. 8, 1976 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Polychloroprene rubber Dec. 6, 1973 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Steel wire rope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct.15, 1973

Synthetic methionine July 10, 1973 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Roller chain other than bicycle Apr. 12, 1973 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Bicycle speedometers 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 22, 1972

Large power transformers 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 14, 1972

Fishnetting of manmade fiber 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 9, 1972

Television receivers 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 10, 1971

Kazakstan:

Ferrosilicon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 7, 1993

Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Kenya: Fresh cut flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 23, 1987

Korea:

Stainless steel wire rod Sept. 15, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Oil country tubular goods Aug. 11, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cold-rolled carbon steel flat products Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Corrosion-resistant carbon steel flat products Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

DRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 10, 1993

Carbon steel wire rope Mar. 26, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Stainless steel butt-weld pipe fittings Feb. 23, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Welded stainless steel pipe Dec. 30, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Circular welded non-alloy steel pipe Nov. 2, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

PET film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 5, 1991

Industrial nitrocellulose July 10, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Telephone systems and subassemblies Feb. 7, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Color picture tubes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 7 , 1988

Top-of-the-stove stainless steel cookware Jan. 20, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Brass sheet and strip Jan. 12, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Malleable cast iron pipe fittings May 23, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Color television receivers 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 30, 1984

Kyrgyzstan: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Latvia-Baltic: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Lithuania: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Malaysia: Extruded rubber thread Oct. 7, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Mexico:

Oil country tubular goods Aug. 11, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Carbon steel wire rope Mar. 25, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Circular welded non-alloy steel pipe Nov. 2, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Gray portland cement and cement clinker Aug. 30, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Fresh cut flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 23, 1987

Porcelain-on-steel cooking ware Dec. 2, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Moldova: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Netherlands:

Aramid fiber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 24, 1994

Cold-rolled carbon steel flat products Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Brass sheet and strip Aug. 12, 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

New Zealand:

Fresh kiwifruit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 2, 1992

Brazing copper wire and rod Dec. 4, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Norway: Fresh and chilled Atlantic salmon Apr. 12, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Poland: Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

See footnote at end of table.
143

Table A-23—Continued

Antidumping orders and findings in effect as of Dec. 31, 1998

Effective date of

Country and commodity original action

Romania:

Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Antifriction bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Tapered roller bearings June 19, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Russia:

Ferrovanadium and nitrided vanadium July 10, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Pure magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 12, 1995

Ferrosilicon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 24, 1993

Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Singapore:

Industrial belts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 14, 1989

Antifriction bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Color picture tubes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 7, 1988

Small diameter standard and rectangular pipe and tube Nov. 13, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

South Africa:

Furfuryl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 21, 1995

Brazing copper wire and rod Jan. 29, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Spain:

Stainless steel wire rod Sept. 15, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Stainless steel bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 2, 1995

Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Potassium permanganate Jan. 19, 1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Sweden:

Stainless steel wire rod Sept. 15, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Antifriction bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Seamless stainless steel hollow products Dec. 3, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Brass sheet and strip Mar. 6, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Stainless steel plate June 8, 1973 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Taiwan:

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Polyvinyl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 14, 1996

Forged stainless steel flanges Feb. 9, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Helical spring lockwashers June 28, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Stainless steel butt-weld pipe fittings June 16, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Welded stainless steel pipe Dec. 30, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Circular welded non-alloy pipe Nov. 2, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Chrome plated lug nuts Sept. 20, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Telephone systems and subassemblies Dec. 11, 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Light-walled rectangular welded carbon steel pipe and tube Mar. 27, 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . 

Top-of-the-stove stainless steel cookware Jan. 20, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Carbon steel butt-weld pipe fittings Dec. 17, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Porcelain-on-steel cookware Dec. 2, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Oil country tubular goods June 18, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Malleable cast iron pipe fittings May 23, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Circular pipe and tube May 7, 1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Color television receivers 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 30, 1984

Carbon steel plate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 13, 1979

Tajikistan: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Thailand:

Furfuryl alcohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 25, 1995

Canned pineapple . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 18, 1995

Carbon steel butt-weld pipe fittings July 6, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Malleable cast iron pipe fittings Aug. 20, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Welded carbon pipe and tube Mar. 11, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Turkey:

Steel concrete reinforcing bar Apr. 17, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Certain pasta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 24, 1996

Aspirin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 25, 1987

Welded carbon pipe and tube May 15, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

See footnote at end of table.
144

Table A-23—Continued

Antidumping orders and findings in effect as of Dec. 31, 1998

Effective date of

Country and commodity original action

Turkmenistan: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Ukraine:

Pure magnesium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 12, 1995

Uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 30, 1993

Ferrosilicon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 7, 1993

Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

United Kingdom:

Cut-to-length carbon steel plate Aug. 19, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hot-rolled lead/bismuth carbon steel product Mar. 22, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sulfur chemicals (sodium thiosulfate) Feb. 19, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Industrial nitrocellulose July 10, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Antifriction bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1989

Uzbekistan: Solid urea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 14, 1987

Venezuela:

Ferrosilicon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June 24, 1993

Circular welded non-alloy steel pipe Nov. 2, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yugoslavia:

Industrial nitrocellulose Oct.16, 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Suspension agreements in effect:

Canada: Potassium chloride Jan. 19, 1988 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . China:

Cut-to-length carbon steel plate Oct. 24, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Honey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 16, 1995

Japan:

Sodium azide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 7, 1997

Color negative photo paper and chemical components Aug. 12, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Small electric motors 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 6, 1980

Kazakstan: Uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 16, 1992

Kyrgyzstan: Uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 16, 1992

Mexico: Fresh tomatoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 1, 1996

Netherlands:

Color negative photo paper and chemical components Aug. 12, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Russia:

Cut-to-length carbon steel plate Oct. 24, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 16, 1992

South Africa: Cut-to-length carbon steel plate Oct. 24, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ukraine:

Cut-to-length carbon steel plate Oct. 24, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Silicomanganese . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 31, 1994

Uzbekistan: Uranium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 16, 1992

Venezuela: Gray portland cement and cement clinker Feb. 27, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1 Antidumping duty order/finding to be revoked by Commerce as of January 1, 2000.

Source: Compiled by staff of the U.S. International Trade Commission from data maintained by the U.S. Department

of Commerce (International Trade Administration).
Table A-24

Preliminary and final phase countervailing duty cases active in 1998, filed under authority of title VII of the Tariff Aoutcomes and by USITC investigation number

(Affirmative (A); Negative (N))

Date Preliminary phase Final phase

USITC original determination determination Investigation Country petition 

No. Product of origin filed Commission ITA1 ITA1 Commissi

Affirmative

701-TA-373 Stainless steel wire rod Italy July 30, 1997 A A A A 

. . . . . . . . . . . . . . . . . . . . . . . 

Negative

701-TA-374 Butter cookies Denmark Feb. 6, 1998 N (3) (3) (3 . . . . . . . . . . . . . . . . . . . . . . . . . . ) 

In Progress

701-TA-375 Extruded rubber thread Indonesia Mar. 31, 1998 A N (4) (4) 

. . . . . . . . . . . . . . . . . . 

701-TA-376 Certain stainless steel plate Belgium Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . 

701-TA-377 Certain stainless steel plate Italy Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . 

701-TA-378 Certain stainless steel plate Korea Mar. 31, 1998 A N (4) (4) 

. . . . . . . . . . . . . . . . . 

701-TA-379 Certain stainless steel plate South Africa Mar. 31, 1998 A A (4) (4) 

. . . . . . . . . . . . 

701-TA-380 Certain stainless steel sheet &

strip France June 10, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

701-TA-381 Certain stainless steel sheet &

strip Italy June 10, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

701-TA-382 Certain stainless steel sheet &

strip Korea June 10, 1998 A A (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

701-TA-383 Elastic rubber India Aug. 18, 1998 A N (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

701-TA-384 Certain hot-rolled steel products Brazil Sept. 30, 1998 A (4) (4) (4) 

. . . . . . . . . . . . . 

701-TA-386 Live cattle Canada Nov. 12, 1998 (4) (4) (4) (4) 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1 U.S. Department of Commerce, International Trade Administration (ITA).2 For cases in which the final action was taken by the ITA, the date shown is the Federal Register notice date of that action. 

final action was taken by the USITC, the date of the USITC notification of Commerce is shown. 3 Not applicable.

4 Pending.

Note.—Inv. No. 701-TA-385 (live cattle from Canada) was withdrawn and then refiled as Inv. No. 701-TA-386.Source: Compiled by the staff of the U.S. International Trade Commission.
146

Table A-25

Countervailing-duty orders and findings in effect as of Dec. 31, 1998

Effective date of

Country and commodity original action

Belgium: Cut-to-length carbon steel plate Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Brazil:

Cut-to-length carbon steel plate Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Hot-rolled lead and bismuth carbon steel products Mar. 22, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Brass sheet and strip Jan. 8, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Iron construction castings May 15, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Agricultural tillage tools Oct. 22, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cotton yarn 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 15, 1977

Castor oil products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 16, 1976

Canada:

Pure and alloy magnesium Aug. 31, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

New steel rails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 22, 1989

Live swine and fresh chilled & frozen pork Aug. 15, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Chile: Fresh cut flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 19, 1987

European Union:2 Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 31, 1978

France:

Corrosion-resistant carbon steel flat products Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Hot-rolled lead and bismuth carbon steel products Mar. 22, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Brass sheet and strip Mar. 6, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

 Germany:

Cold-rolled carbon steel flat products Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Corrosion-resistant carbon steel flat products Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cut-to-length carbon steel plate Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Hot-rolled lead and bismuth carbon steel products Mar. 22, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

India:

Sulfanilic acid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 2, 1993

Certain iron-metal castings Oct. 16, 1980 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Iran:

Roasted pistachios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Oct. 7, 1986

Raw pistachios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 11, 1986

Israel:

Industrial phosphoric acid Aug. 19, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Oil country tubular goods Mar. 6, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Italy:

Stainless steel wire rod Sept. 15, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Certain pasta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 24, 1996

Oil country tubular goods Aug. 10, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Seamless line and pressure pipe Aug. 8, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Grain-oriented electric steel June 7, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Korea:

Cold-rolled carbon steel flat products Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Corrosion-resistant carbon steel flat products Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Top-of-the-stove stainless steel cookware Jan. 20, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Malaysia:

Extruded rubber thread Aug. 25, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Mexico:

Cut-to-length carbon steel plate Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Porcelain-on-steel cookware Dec. 12, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Netherlands: Fresh cut flowers Mar. 12, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Norway: Fresh and chilled Atlantic salmon Apr. 12, 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Pakistan: Cotton shop towels Mar. 9, 1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Peru: Fresh cut flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 23, 1987

Spain:

Cut-to-length carbon steel plate Aug.17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Stainless steel wire rod Jan. 3, 1983 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Sweden:

Cut-to-length carbon steel plate Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Cold-rolled carbon steel flat products Oct.11, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Rayon staple fiber 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 15, 1979

Taiwan: Top-of-the-stove stainless steel cookware Jan. 20, 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Turkey:

Certain pasta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 24, 1996

Welded carbon steel pipe and tube Mar.7, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

See footnotes at end of table.
147

Table A-25—Continued

Countervailing-duty orders and findings in effect as of Dec. 31, 1998

Effective date of

Country and commodity original action

United Kingdom:

Cut-to-length carbon steel plate Aug. 17, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Hot-rolled lead and bismuth carbon steel products Mar. 22, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Venezuela: Ferrosilicon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May 10, 1993

Suspension agreements in effect:

Argentina: Carbon wire rod Sept. 27, 1982 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brazil: Frozen concentrated orange juice Mar. 2, 1983 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Colombia: Textiles and textile products Mar. 12, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Peru: Cotton shop towels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 12, 1984

Singapore: Refrigerator compressors Nov. 7, 1983 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thailand: Textiles and textile products Mar. 12, 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Venezuela: Gray portland cement and cement clinker Mar. 17, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

 1 Countervailing duty order/finding to be revoked by Commerce as of January 1, 2000.

 2 Includes Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, and the

United Kingdom.

Source: Compiled by staff of the U.S. International Trade Commission from data maintained by the U.S. Department

of Commerce (International Trade Administration).
148

Table A-26

Section 337 investigations completed by the U.S. International Trade Commission during 1998 and

those pending on Dec. 31, 1998

Status of Commission

Investigation Article Country1 determination

Completed:

337-TA-370 Certain Salinomycin Biomass and Germany Ancillary sanctions

Preparations Containing Same proceeding terminated

based on a settlement

agreement.

337-TA-383 Certain Hardware Logic France Ancillary sanctions

 Emulation Systems and proceeding terminated

Components Thereof based on a stipulation.

337-TA-393 Certain Ion Trap Mass Spectrometers Germany Terminated based on a

and Components Thereof finding of no violation.

337-TA-395 Certain EPROM, EEPROM, Flash Taiwan, Japan Terminated based on a

Memory, and Flash Microcontroller finding of no violation.

Semiconductor Devices and Products

Containing Same

337-TA-396 Certain Removable Electronic France Terminated based on a

Cards and Electronic Card Reader finding of no violation.

Devices and Products Containing

Same

337-TA-397 Certain Dense Wavelength Division Italy Terminated based on

Multiplexing Systems and a consent order; consent

Components Thereof order rescinded based on 

a settlement agreement.

337-TA-399 Certain Fluid-Filled Ornamental Taiwan Terminated based on

Lamps consent orders, a 

settlement agreement,

and withdrawal 

of the complaint.

337-TA-400 Certain Telephonic Digital Added Israel Terminated based on a

Main Line Systems, Components settlement agreement.

Thereof, and Products Containing

Same

337-TA-401 Certain CD-ROM Controllers and Taiwan, Terminated based on a

Products Containing Same Singapore, settlement agreement.

Malaysia

337-TA-402 Certain Integrated Circuits and Korea Terminated based on a

Products Containing Same settlement agreement.

337-TA-404 Certain SDRAMs, DRAMs, ASICs, Japan Terminated based on a

RAM-and-Logic Chips, settlement agreement.

Microprocessors, Microcontrollers,

Processes for Manufacturing Same

and Products Containing Same

337-TA-405 Certain Automotive Scissors Jacks Canada Terminated based on a

settlement agreement.

337-TA-407 Certain Remodulating Channel Italy Terminated based on a

Selectors and Systems settlement agreement.

Containing Same

See footnote at end of table.
149

Table A-26—Continued

Section 337 investigations completed by the U.S. International Trade Commission during 1998 and

those pending on Dec. 31, 1998

Status of Commission

Investigation Article Country1 determination

Completed:—Continued

337-TA-408 Certain Recombinantly Produced Belgium Terminated based on a

Hepatitis B Vaccines and Products settlement agreement.

Containing Same

337-TA-410 Coated Optical Waveguide Fibers Netherlands, Terminated based on

and Products Containing Same People’s Republic a consent order.

of China

Pending:

337-TA-380 Certain Agricultural Tractors Under Japan Formal enforcement

50 Power Take-Off Horsepower proceeding pending

before the ALJ.

337-TA-403 Certain Acesulfame Potassium and People’s Pending before the

Blends and Products Containing Same Republic of Commission.

China

337-TA-406 Certain Lens-Fitted Film Packages People’s Pending before the ALJ.

Republic of

337-TA-409 Certain CD-ROM Controllers Taiwan Pending before the ALJ.

and Products Containing Same - II 

337-TA-411 Certain Organic Photoconductor Drums Japan, Germany, Pending before the

and Products Containing the Same Hong Kong, Commission.

Thailand, Taiwan

337-TA-412 Certain Video Graphics Display Canada Pending before the ALJ.

Controllers and Products Containing

Same

337-TA-413 Certain Rare-Earth Magnets and Taiwan Pending before the ALJ.

Magnetic Materials and Articles

Containing the Same

337-TA-414 Certain Semiconductor Memory Taiwan Pending before the ALJ.

Devices and Products Containing Same

337-TA-415 Certain Mechanical Lumbar Supports Canada, Germany, Pending before the ALJ.

and Products Containing Same Austria

337-TA-416 Certain Compact Multipurpose Tools People’s Republic Pending before the ALJ.

of China, Taiwan

1 This column lists the countries of the foreign respondents named in the investigation.

Source: U.S. International Trade Commission, Office of Unfair Import Investigations. 
150

Table A-27

Outstanding sec. 337 exclusion orders as of Dec. 31, 1998

Investigation Date patent

No. Article Country1 expires2

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

337-TA-137 Certain Heavy-Duty Staple Gun Tackers Taiwan, Hong Kong, Nonpatent

Korea

337-TA-152 Certain Plastic Food Storage Containers Hong Kong, Taiwan Nonpatent

337-TA-167 Certain Single Handle Faucets Taiwan Nonpatent

337-TA-170 Certain Bag Closure Clips Israel Aug. 25, 20003

May 26, 20013

337-TA-174 Certain Woodworking Machines South Africa, Taiwan Sept. 17, 20013

337-TA-195 Certain Cloisonne Jewelry Taiwan Nonpatent

337-TA-197 Certain Compound Action Metal Cutting Snips Taiwan Nonpatent

and Components Thereof

337-TA-228 Certain Fans With Brushless DC Motors Japan Sept. 30, 20023

337-TA-229 Certain Nut Jewelry and Parts Thereof Philippines, Taiwan Nonpatent

337-TA-231 Certain Soft Sculpture Dolls, Popularly Known No foreign respondents Nonpatent

as ”Cabbage Patch Kids,” Related Literature,

and Packaging Therefor

337-TA-240 Certain Laser Inscribed Diamonds and the Israel Dec. 23, 20003

Method of Inscription Thereof

337-TA-242 Certain Dynamic Random Access Memories, Japan, Korea Aug. 6, 2002

Components Thereof, and Products Containing Sept. 24, 2002

Same

337-TA-254 Certain Small Aluminum Flashlights and Hong Kong, Taiwan June 6, 20043

Components Thereof

337-TA-266 Certain Reclosable Plastic Bags and Tubing Singapore, Taiwan, Nonpatent

Korea, Thailand,

Hong Kong

337-TA-276 Certain Erasable Programmable Read Only Korea Feb. 13, 19993

Memories, Components Thereof, Products Dec. 23, 20003

Containing Such Memories and Processes for June 17, 20023

Making Such Memories June 7, 20053

337-TA-279 Certain Plastic Light Duty Screw Anchors Taiwan Nonpatent
151

Table A-27—Continued

Outstanding sec. 337 exclusion orders as of Dec. 31, 1998

Investigation Date patent

No. Article Country1 expires2

337-TA-285 Certain Chemiluminescent Compositions and France Nonpatent

Components Thereof and Methods of Using, and Feb. 2, 1999

Products Incorporating, the Same

337-TA-287 Certain Strip Lights Taiwan Nonpatent

Apr. 7, 20003

337-TA-293 Certain Crystalline Cefadroxil Italy, Spain, Mar. 12, 2002

Monohydrate Switzerland

337-TA-295 Certain Novelty Teleidoscopes. Hong Kong Nonpatent

337-TA-308 Certain Key Blanks For Keys of High Security Korea Jan. 13, 2004

Cylinder Locks. June 19, 20053

337-TA-314 Certain Battery-Powered Ride-On Toy 

Vehicles and Components Thereof Taiwan Sept. 22, 2001

Jan. 31, 2003

Dec. 6, 20033

Jan. 27, 2004

Sept. 22, 20063

337-TA-319 Certain Automotive Fuel Caps and Radiator Taiwan Nonpatent

Caps and Related Packaging and June 22, 20063

Promotional Materials July 22, 20063

337-TA-320 Certain Rotary Printing Apparatus Using 

Heated Ink Composition, Components France, Spain Apr. 30, 20043

Thereof, and Systems Containing Said 

Apparatus and Components

337-TA-321 Certain Soft Drinks and Their Containers Colombia Nonpatent

337-TA-324 Certain Acid-Washed Denim Garments and Hong Kong, Taiwan, Oct. 22, 20063

Accessories Brazil, Chile

337-TA-333 Certain Woodworking Accessories Taiwan Mar. 2, 20083

337-TA-334 Certain Condensers, Parts Thereof and 

Products Containing Same, Including Air Japan Mar. 12, 2008

Conditioners for Automobiles

337-TA-337 Certain Integrated Circuit Telecommunication Taiwan May 18, 2001

Chips and Products Containing Same,

Including Dialing Apparatus

337-TA-344 Certain Cutting Tools For Flexible Plastic Taiwan Aug. 1, 20003

Conduit and Components Thereof

337-TA-354 Certain Tape Dispensers Hong Kong, Taiwan Apr. 7, 2001

337-TA-360 Certain Devices For Connecting Computers Taiwan Feb. 13, 2007

Via Telephone Lines

337-TA-365 Certain Audible Alarm Devices For Divers Taiwan Aug. 21, 20073

Oct. 12, 20083

337-TA-372 Certain Neodymium-Iron-Boron Magnets, 

Magnet Alloys, and Articles Containing Same People’s Republic May 20, 20053

of China, Hong Kong,

Taiwan

337-TA-374 Certain Electrical Connectors and Products Taiwan Jan. 22, 2008

Containing Same

See footnote at end of table.
152

Table A-27—Continued

Outstanding sec. 337 exclusion orders as of Dec. 31, 1998

Investigation Date patent

No. Article Country1 expires2

337-TA-376 Certain Variable Speed Wind Turbines and Germany Feb. 1, 20113

Components Thereof

337-TA-378 Certain Asian-Style Kamaboko Fish Cakes Japan Nonpatent

337-TA-380 Certain Agricultural Tractors Under 50 Japan Nonpatent

Power Take-Off Horsepower

337-TA-383 Certain Hardware Logic Emulation France Oct. 5, 2008

Systems and Components Thereof Oct. 5, 2008

Oct. 5, 2008

Apr. 28, 2009

Apr. 28, 2009

337-TA-391 Certain Toothbrushes and the Packaging 

Thereof People’s Republic Aug. 4, 2006

of China, Taiwan

1 This column lists the countries of the foreign respondents named in the investigation.

2 Multiple dates indicate the expiration dates of separate patents within the investigation.

3 Patent term extended pursuant to 35 U.S.C. 154(c).

Source: U.S. International Trade Commission, Office of Unfair Import Investigations.
Table A-28

U.S. imports for consumption of leading GSP duty-free imports, 1998

(1,000 dollars)

HTS Rank

Total U.S.

imports for Imports of GSP

Rank

Ranksubheading Description

 imports for

Consumption GSP-eligible G

1 2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,078,826 2,068,072 2 8471.60.35 Display units for ADP machines with color cathode-ray tube not entered with the rest of a system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,572,217 863,259 

3 8521.10.60 Color, cartridge or cassette magnetic tape-type video recording and reproducing apparatus, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,373,417 526,093 4 7113.19.50 Precious metal (o/than silver) articles of jewelry and parts thereof, whether or not plated or clad with precious metal, nesoi . . . . . . . . . . . . . 2,600,822 965,059 5 8527.21.10 Radio-tape player combinations not operable without external power source, for motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,693,831 253,203 6 9403.60.80 Furniture (o/than seats & o/than of 9402) of wooden (o/than bentwood) nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,307,451 417,685 7 8414.30.40 Compressors of a kind used in refrigerating equipment (including air conditioning) not exceeding 1/4 horsepower . . . . . . . . . . . . . . . . . . . . . . . 260,810 200,896 

8 1701.11.10 Cane sugar, raw, in solid form, w/o added flavoring or coloring, subject to add. US 5 to Ch.17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 658,544 567,600 

9 8517.11.00 Line telephone sets with cordless handsets . . . . . . . . . . . . . . . . . . . . . . . . . 2,106,552 359,407 10 7202.41.00 Ferrochromium containing by weight more than 4 percent of carbon . . . 181,585 175,734 11 8708.99.67 Pts. & access. of motor vehicles of 8701, nesoi, and 8702-8705, pts. for power trains nesoi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,669,931 177,994 

12 7113.19.29 Gold necklaces and neck chains (o/than of rope or mixed links) . . . . . . . 891,822 236,380 13 8708.70.45 Pts. & access. of mtr. vehic. of 8701, nesoi, and of 8702-8705, road

wheels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 696,714 138,318 

14 4104.39.40 Upholstery leather, of bovine and equine leather, nesi, without hair on, parchment-dressed or prepared after tanning . . . . . . . . . . . . . . . . . . . . . 258,004 191,337 15 9403.50.90 Furniture (o/than seats) of wood (o/than bentwood), of a kind used in the bedroom & not designed for motor vehicle use . . . . . . . . . . . . . . . . . . . . 885,089 139,627 16 8544.30.00 Insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,407,641 409,464 

17 2909.19.14 Methyl tertiay-butyl ether. (MTBE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 840,711 117,172 18 4409.10.40 Standard wood moldings of pine (Pinus spp.), continuously shaped along any of its edges or faces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297,780 165,415 19 7323.93.00 Stainless steel, table, kitchen or o/household arts. amd parts thereof . . . 407,563 109,387 20 7615.19.30 Aluminum, cooking and kitchen ware (o/than cast), enameled or glazed or containing nonstick interior finishes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,639 96,004 

Total, above items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,429,949 8,178,105 

Total, all GSP items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531,953,792 29,303,243 

Note.—Calculations based on unrounded data.Source: Compiled from official statistics of the U.S. Department of Commerce
Table A-29

U.S. imports for consumption and imports eligible for GSP treatment, by import categories under the Harmonized (HTS), 1998

(Million dollars)

Total U S Imports 

HTSsection

TotalDescription

Total U.S.

imports for

Consumption GSP

I Live animals; animal products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,221 II Vegetable products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,660 III Animal and vegtable fats, oils, and waxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,510 IV Prepared foodstuffs; beverages, spirits; tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,113 V Mineral products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,176 VI Chemical products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,939 VII Plastics and rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,039 VIII Raw hides and skins, leather, furskins; saddlery; handbags . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,162 IX Wood; charcoal; cork ; straw and other plaiting materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,676 X Wood pulp; paper and paperboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,306 XI Textiles and textile articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,081 XII Footwear, headgear, umbrellas; artificial flowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,037 XIII Stone, plaster, cement, asbestos, ceramic and glass articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,427 XIV Pearls, precious or semi-precious stones; imitation jewellery . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,408 XV Base metals and articles of base metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,789 XVI Machinery and appliances; electrical equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,724 XVII Vehicles, aircraft, vessels, transport equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,375 XVIII Optical, photographic, medical, and musical instruments; clocks . . . . . . . . . . . . . . . . . . . . . . . . . 32,262 XIX Arms and ammunition; parts and accessories thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 649 XX Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,963 XXI Works of art, collectors’ pieces and antiques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,963 XXII Special classification provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,859  Total, above items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 905,339 Note.—Calculations based on unrounded data.Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-30

U.S. imports for consumption of leading imports under CBERA, 1996-98

(1,000 dollars)

HTS Commodity 1996 

2402.10.80 Cigars, cheroots and cigarillos, each valued 23 cents or over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154,951 9018.90.80 Medical, surgical, or dental instruments and appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,475 1701.11.10 Raw sugar not containing added flavoring or color . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240,394 6406.10.65 Footwear uppers, other than formed, of leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,789 7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps . . . . 134,610 8517.90.24 Parts of electrical telephonic switching or terminal apparatus, incorporating printed circuit . . . . . . . . . . . . 240 0804.30.40 Pineapples, fresh or dried, not reduced in size, in crates or other packages . . . . . . . . . . . . . . . . . . . . . . . . . 43,017 7213.91.30 Bars and rods, hot-rolled, not tempered or treated, of iron or nonalloy steel . . . . . . . . . . . . . . . . . . . . . . . . 60,491 2905.11.20 Methanol (Methyl alcohol), nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,144 8536.20.00 Automatic circuit breakers, for a voltage not exceeding 1,000 volts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,975 0807.19.20 Cantaloupes, fresh, not entered Aug 1-Sept 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,912 0302.69.40 Fresh or chilled fish, including sable, ocean perch, snapper, grouper, and monkfish . . . . . . . . . . . . . . . . . . 45,739 1701.11.20 Other sugar to be used for the production (other than distillation) of polyhydric alcohols . . . . . . . . . . . . . . 76,022 2009.11.00 Frozen concentrated orange juice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,571 8516.31.00 Electrothermic hair dryers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,830 8538.90.80 Terminals, electrical splices and couplings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,320 2207.10.60 Undenatured ethyl alcohol for nonbeverage purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,905 4016.93.50 Nonautomotive gaskets, washers, and seals of vulcanized rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,862 8536.50.90 Switches nesoi, for switching or making connections to or in electrical circuits, for a voltage not exceeding 1,000 volts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 

0807.19.70 Other melons if not entered Jun 1-Nov . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,621 2921.43.15 Alpha,alpha,alpha-trifluoro-2,6-dinitro-N,N-dipropyl-p-toluidine (Trifluralin) . . . . . . . . . . . . . . . . . . . . . . . . . . 8,147 6210.10.50 Other nonwoven disposable apparel designed for use in hospitals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,001 8536.49.00 Relays for switching, protecting or making connections to or in electrical circuits, for a voltage exceeding 60 but not exceeding 1,000 volts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,446 

0714.90.10 Fresh or chilled dasheens, whether or not sliced or in the form of pellets . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,372 2401.20.85 Tobacco, partly or wholly stemmed/stripped, threshed or similarly processed, not from cigar leaf . . . . . . 12,774 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,476,610 All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,314,445 

 Total all commodities: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,791,055 

1 Prior to 1996, imports reported under HTS 0807.10.20.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table A-31

U.S. imports for consumption under CBERA provisions, by country, 1994-98

(1,000 dollars)

Rank Source 1994 1995 1996 1 Dominican Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 751,028 845,356 932,413 1,2 Costa Rica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478,109 527,716 657,127 73 Guatemala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,381 168,467 279,768 24 Honduras . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139,838 156,840 207,289 25 Trinidad and Tobago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,901 144,248 184,895 26 Jamaica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,316 87,330 95,965 7 Panama . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,141 39,357 51,352 8 Nicaragua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,554 78,543 116,007 9 El Salvador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,126 68,550 91,254 10 Bahamas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,062 22,855 20,765 11 Haiti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,770 26,522 30,223 12 St Kitts-Nevis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,220 18,776 19,241 13 Guyana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,100 17,409 32,285 14 Barbados . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,313 23,043 23,089 15 Belize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,112 16,676 24,760 16 Grenada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768 724 1,007 17 St. Lucia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,077 6,503 7,129 18 St Vincent and the Grenadines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,299 2,527 3,580 19 Netherlands Antilles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,214 4,468 4,357 20 Dominica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,112 2,201 2,204 21 Aruba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 114 138 22 British Virgin Islands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 631 23 Antigua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 809 1,683 1,615 24 Montserrat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886 1,488 3,962  Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,050,158 2,261,407 2,791,055 3,2Note.—Because of rounding, figures may not add to the totals shown.Source: Compiled from official statistics of the U.S. Department of Commerce.
157

Table A-32

U.S. imports for consumption under ATPA provisions, by country, 1996-98

(1,000 dollars)

Rank Country 1996 1997 1998

1 Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 560,546 605,472 709,889

2 Peru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,298 460,992 632,676

3 Ecuador . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,419 217,437 233,002

4 Bolivia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,791 68,955 69,630

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,270,054 1,352,855 1,645,196

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-33

U.S. imports for consumption of leading imports under ATPA, 1996-98

(1,000 dollars)

HTS No. Commodity 1996 

7403.11.00 Cathodes and sections of cathodes, of refined copper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,749 0603.10.60 Roses, fresh cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,039 0603.10.70 Chrysanthemums, standard carnations, anthuriums and orchids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161,918 7108.13.70 Other semimanufactured forms of nonmonetary gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,875 0603.10.80 Cut flowers and flower buds suitable for bouquets, nesi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,386 7113.19.10 Rope and chain for jewelry, of precious metal except silver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,841 7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps . . . . . . . 57,383 7115.90.30 Gold (including metal clad with gold) articles, other than jewelry or goldsmiths’ wares . . . . . . . . . . . . . . . . . . (1) 

9111.90.40 Parts of watch cases, of precious metal or of metal clad with precious metal . . . . . . . . . . . . . . . . . . . . . . . . . . 0 2843.30.00 Gold compounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1604.14.40 Tuna and skipjack, not in airtight containers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,933 3212.90.00 Pigments dispersed in nonaqueous media, in liquid or paste form, used in making paints;

dyes & coloring matter packaged for retail sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 

0603.10.30 Miniature (spray) carnations, fresh cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,035 3921.12.11 Nonadhesive plates, sheets, film, foil, strip . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,598 1701.11.10 Raw sugar not containing added flavoring or coloring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,635 7113.19.29 Gold necklaces and neck chains, other than rope or mixed link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,676 7901.11.00 Zinc (o/than alloy), unwrought, containing o/99.99% by weight of zinc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,894 0709.20.90 Asparagus, fresh or chilled, not reduced in size, not entered Sept 15-Nov 15 . . . . . . . . . . . . . . . . . . . . . . . . . 15,285 0302.69.40 Fresh or chilled fish, including sable, ocean perch, snapper, grouper, and monkfish . . . . . . . . . . . . . . . . . . . . 14,471 7905.00.00 Zinc plates, sheets, strip and foil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,112 4421.90.98 Articles of wood, including pencil slats and others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,166 4202.91.00 Leather golf bags, travel bags, sports bags, and cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,249 9602.00.10 Worked unhardened gelatin and articles thereof, excluding that covered in HTS 3503 . . . . . . . . . . . . . . . . . . 679 2933.71.00 6-Hexanelactam (epsilon-Caprolactam) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600 7113.19.25 Gold mixed link necklaces and neck chains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 

Total of items shown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 945,524 

All others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,529 Total of all commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,270,054 

1 Prior to November 1997, imports reported under HTS 7115.90.10 part.

Note.—Because of rounding, figures may not add to totals show. The abbreviation, nesi, stands for “not elsewhere specified or inSource: Compiled from official statistics of the U.S. Department of Commerce.