United States International Trade Commission

60TH REPORT

USITC Publication 4091

July 2009

THE YEAR IN 

TRADE 2008

Operation of the Trade 

Agreements Program 
Address all communications to 

Secretary to the Commission 

United States International Trade Commission 

Washington, DC 20436

U.S. International Trade Commission

Director of Economics

Robert B. Koopman

Director of Operations

Robert A. Rogowsky

COMMISSIONERS 

 

Shara L. Aranoff, Chairman 

Daniel R. Pearson, Vice Chairman 

Deanna Tanner Okun 

Charlotte R. Lane 

Irving A. Williamson 

Dean A. Pinkert
U.S. International Trade Commission

Washington, DC 20436 

www.usitc.gov

Publication 4091 July 2009

The Year in Trade 2008

Operation of the Trade Agreements Program 

60th Report
This report was principally prepared by: 

The Office of Economics 

Joanne Guth, Project Leader

Nick Grossman, Deputy Project Leader

Nannette Christ, Justino De La Cruz, 

William Greene, Alexander Hammer, Aimee Larson, Walker Pollard, 

James Stamps, and Edward C. Wilson 

Office of the General Counsel

William W. Gearhart 

Office of Tariff Affairs and Trade Agreements

Naomi Freeman and Dan Shepherdson 

Office of Investigations

Mary Messer and Andy Rylyk 

Office of Unfair Import Investigations

T. Spence Chubb 

Office of Industries

Samantha Brady, Dawn Heuschel, 

 Laura Rodriguez, and Donald Sussman 

Office of Information Technology Systems

Barbara V. Bobbitt 

Supporting assistance was provided by:

Terri L. Anderson 

Interns:

Natalia Buniewicz and Andrew Martinez 

Office of Publishing 

Under the direction of 

Arona Butcher, Chief 

Country and Regional Analysis Division 
PREFACE

This report is the 60th in a series of annual reports submitted to the U.S. Congress under 

section 163(c) of the Trade Act of 1974 (19 U.S.C. 2213(c)) and its predecessor 

legislation. Section 163(c) of the Trade Act of 1974 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.” 

This report is one of the principal means by which the U.S. International Trade 

Commission provides Congress with factual information on trade policy and its 

administration for calendar year 2008. 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. 

iii 

v

TABLE OF CONTENTS

Page 

Preface............................................................................................................................................... iii 

Abbreviations and Acronyms ......................................................................................................... xi 

Executive Summary......................................................................................................................... xv 

Chapter 1. Overview of U.S. Trade ................................................................................................ 1-1 

Scope and approach of the report ................................................................................................ 1-1 

Overview of the U.S. economy in 2008 ...................................................................................... 1-1 

Exchange rate trends ............................................................................................................. 1-3 

Balance of payments ............................................................................................................. 1-4 

Trade in goods and services .................................................................................................. 1-5 

U.S. trade in goods in 2008 ......................................................................................................... 1-6 

U.S. merchandise trade by product category ........................................................................ 1-7 

Exports ............................................................................................................................ 1-7 

Imports ............................................................................................................................. 1-8 

U.S. merchandise trade with leading partners....................................................................... 1-8 

U.S. trade in services in 2008 ...................................................................................................... 1-10 

U.S. services trade by product category................................................................................ 1-11 

Exports ............................................................................................................................. 1-11 

Imports ............................................................................................................................. 1-12 

U.S. services trade with leading partners .............................................................................. 1-13 

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

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

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

Trade adjustment assistance .................................................................................................. 2-1 

Assistance for workers ..................................................................................................... 2-2 

Assistance for farmers...................................................................................................... 2-3 

Assistance for firms.......................................................................................................... 2-4 

Laws against unfair trade practices.............................................................................................. 2-4 

Section 301 investigations..................................................................................................... 2-4 

Active section 301 case in 2008....................................................................................... 2-5 

Special 301 ....................................................................................................................... 2-5 

Antidumping and countervailing duty investigations and reviews ....................................... 2-7 

Antidumping investigations ............................................................................................. 2-7 

Countervailing duty investigations................................................................................... 2-8

Reviews of outstanding antidumping and countervailing duty orders/suspension 

agreements................................................................................................................... 2-9 

Section 337 investigations..................................................................................................... 2-10 
vi

TABLE OF CONTENTS - Continued

Page 

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

Tariff preference programs.......................................................................................................... 2-11 

Generalized System of Preferences ........................................................................................ 2-11 

African Growth and Opportunity Act..................................................................................... 2-13 

Andean Trade Preference Act................................................................................................. 2-16 

Caribbean Basin Economic Recovery Act ............................................................................. 2-17 

 HOPE Act .................................................................................................................... 2-19 

Chapter 3. Selected Trade Developments in the WTO, OECD, and APEC............................... 3-1 

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

 Doha trade negotiations.......................................................................................................... 3-1 

 General Council...................................................................................................................... 3-3 

Work programs, decisions, and reviews......................................................................... 3-3 

Enhanced Integrated Framework ............................................................................. 3-3 

Small economies ...................................................................................................... 3-4 

Special and differential treatment ............................................................................ 3-4 

TRIPS Council matters ............................................................................................ 3-4 

Cotton initiative ....................................................................................................... 3-5 

Accessions ............................................................................................................... 3-5 

Waivers ................................................................................................................... 3-5

WTO Director-General appointment process .......................................................... 3-5 

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

New requests for consultations and new panels established .......................................... 3-8 

Panels established during 2008 at the request of the United States ......................... 3-10 

 Appellate body and panel reports issued and/or adopted during 2008 that involved 

 the United States......................................................................................................... 3-11 

 Reports in which the United States was the complainant ........................................ 3-12 

 Reports in which the United States was the respondent .......................................... 3-13 

Organization for Economic Cooperation and Development ....................................................... 3-15 

Trade Committee .................................................................................................................. 3-16 

 Ongoing activities of the Trade Committee ................................................................... 3-16 

 Multilateral trading system discussions.......................................................................... 3-17 

 Bilateral and regional trade agreements in the multilateral trading system ............. 3-17 

 Nontariff measures................................................................................................... 3-18 

 Administrative matters and public outreach................................................................... 3-18 

Asia-Pacific Economic Cooperation ........................................................................................... 3-19 

 Open trade and investment.................................................................................................... 3-19 

 Committee on Trade and Investment .................................................................................... 3-20 

 Corporate social responsibility ............................................................................................. 3-20
vii

TABLE OF CONTENTS - Continued

Page 

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

FTAs in force during 2008 .......................................................................................................... 4-1 

FTA developments during 2008 .................................................................................................. 4-3 

U.S.-Colombia TPA .............................................................................................................. 4-5 

U.S.-Israel FTA..................................................................................................................... 4-6 

U.S.-CAFTA-DR .................................................................................................................. 4-6 

North American Free Trade Agreement ...................................................................................... 4-7 

Free Trade Commission ........................................................................................................ 4-8 

Commission for Labor Cooperation...................................................................................... 4-8 

Commission for Environmental Cooperation........................................................................ 4-9 

 Dispute settlement................................................................................................................. 4-12 

 Chapter 11 dispute settlement developments.................................................................. 4-12 

 Chapter 19 dispute panel reviews................................................................................... 4-13 

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

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

Transatlantic Economic Council .......................................................................................... 5-2 

 Regulatory cooperation .................................................................................................. 5-3 

 Poultry ........................................................................................................................... 5-4 

 REACH .......................................................................................................................... 5-4 

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

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

 Softwood lumber agreement ................................................................................................ 5-7 

China ........................................................................................................................... 5-8 

Intellectual property rights enforcement .............................................................................. 5-10 

Textiles and apparel trade .................................................................................................... 5-11 

Product safety ....................................................................................................................... 5-12 

Financial sector cooperation.................................................................................................. 5-12 

Ten Year Framework on Energy and Environment Cooperation.......................................... 5-13 

Global trade imbalances and China’s exchange rate regime................................................. 5-14 

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

Cross-border trucking between the United States and Mexico ............................................. 5-16 

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

Beef ........................................................................................................................ 5-18 

Deregulation ........................................................................................................................ 5-19 

Korea ........................................................................................................................... 5-20 

U.S.-Korea FTA.................................................................................................................... 5-21 

Beef ........................................................................................................................ 5-21 

Taiwan ........................................................................................................................... 5-22 

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

Agriculture ........................................................................................................................ 5-24 

Beef ........................................................................................................................ 5-24 

Rice ........................................................................................................................ 5-24 

 
viii

TABLE OF CONTENTS - Continued

Page 

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

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

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

India ........................................................................................................................ 5-27 

Trade dialogue ...................................................................................................................... 5-29 

Bibliography ........................................................................................................................ Biblio-1 

Figures

ES.1 U.S. trade balance in goods and services, 1986-2008 ............................................................ xv

1.1 U.S. real gross domestic product, in percentage change, 2001-08 ......................................... 1-2 

1.2 Indices of exchange rates for selected major currencies in relation to the U.S. dollar, 

 daily, 2008 ........................................................................................................................... 1-4 

1.3 Prices of oil and nonfuel commodities, 2004-09.................................................................... 1-6 

1.4 U.S. merchandise trade with the world, 2006-08 .................................................................. 1-7 

1.5 Leading U.S. merchandise export markets, by share, 2008.................................................... 1-9 

1.6 Leading U.S. merchandise import sources, by share, 2008.................................................... 1-10 

1.7 U.S. private cross-border services trade with the world, 2006-08.......................................... 1-11 

1.8 Leading U.S. export markets for private services, by share, 2008 ......................................... 1-14 

1.9 Leading U.S. import sources of private services, by share, 2008 .......................................... 1-14 

5.1 U.S. merchandise trade with the EU, 2004-08........................................................................ 5-1 

5.2 U.S. private services trade with the EU, 2004-08................................................................... 5-1 

5.3 U.S. merchandise trade with Canada, 2004-08....................................................................... 5-6

5.4 U.S. private services trade with Canada, 2004-08 .................................................................. 5-6

5.5 U.S. merchandise trade with China, 2004-08 ......................................................................... 5-8 

5.6 U.S. private services trade with China, 2004-08..................................................................... 5-8 

5.7 U.S. merchandise trade with Mexico, 2004-08....................................................................... 5-15 

5.8 U.S. private services trade with Mexico, 2004-08.................................................................. 5-15 

5.9 U.S. merchandise trade with Japan, 2004-08.......................................................................... 5-18 

5.10 U.S. private services trade with Japan, 2004-08 ..................................................................... 5-18 

5.11 U.S. merchandise trade with Korea, 2004-08 ......................................................................... 5-20 

5.12 U.S. private services trade with Korea, 2004-08 .................................................................... 5-20 

5.13 U.S. merchandise trade with Taiwan, 2004-08....................................................................... 5-23

5.14 U.S. private services trade with Taiwan, 2004-08 .................................................................. 5-23

5.15 U.S. merchandise trade with Brazil, 2004-08 ......................................................................... 5-26 

5.16 U.S. private services trade with Brazil, 2004-08 .................................................................... 5-26 

5.17 U.S. merchandise trade with India, 2004-08........................................................................... 5-28 

5.18 U.S. private services trade with India, 2004-08...................................................................... 5-28 

Tables

ES.1 Summary of 2008 trade agreement activities ......................................................................... xxiv 

1.1 U.S. merchandise trade with major trading partners and the world, 2008 ............................. 1-9 

1.2 U.S. private services trade with major trading partners and the world, 2008......................... 1-13 

2.1 Antidumping duty orders that became effective during 2008 ................................................ 2-9

2.2 Countervailing duty orders that became effective during 2008.............................................. 2-9
ix

TABLE OF CONTENTS - Continued

Page 

Tables - Continued

2.3 U.S. imports for consumption from GSP beneficiaries and the world, 2008 ......................... 2-13 

2.4 U.S. imports for consumption from AGOA countries, 2006-08 ............................................ 2-14 

2.5 U.S. imports for consumption from ATPA countries, 2006-08 ............................................. 2-16 

2.6 U.S. imports for consumption from CBERA countries, 2006-08........................................... 2-18 

3.1 WTO membership in 2008 ..................................................................................................... 3-6 

3.2 WTO observers in 2008.......................................................................................................... 3-7 

3.3 WTO dispute settlement panels established in 2008 .............................................................. 3-10 

4.1 U.S. merchandise trade with FTA partners, total trade, 2006-08 ........................................... 4-2 

4.2 U.S. imports entered under FTA provisions, by FTA partner, 2006-08................................. 4-3 

4.3 Status of U.S. FTA negotiations during 2008 ........................................................................ 4-5 

4.4 U.S. merchandise trade with NAFTA partners, 2006-08 ....................................................... 4-8 

4.5 Active files through 2008, under article 14 of the North American Agreement on 

Environmental Cooperation ................................................................................................ 4-11 

4.6 Citizen submissions on enforcement under article 15 of the North American Agreement 

on Environmental Cooperation, submissions active during 2008....................................... 4-12 

4.7 NAFTA chapter 19 binational panels, active reviews as of the end of 2008 ......................... 4-14 

Appendix tables

A.1 U.S. merchandise trade with the world, by SITC codes (revision 3), 2006-08 ...................... A-3 

A.2 U.S. private services exports to the world, by category, 2006-08.......................................... A-4 

A.3 U.S. private services imports from the world, by category, 2006-08..................................... A-5 

A.4 Antidumping cases active in 2008, by USITC investigation number .................................... A-6 

A.5 Antidumping duty orders in effect as of December 31, 2008................................................. A-7 

A.6 Countervailing duty cases active in 2008, by USITC investigation number.......................... A-12 

A.7 Countervailing duty orders in effect as of December 31, 2008.............................................. A-13 

A.8 Reviews of existing antidumping and countervailing duty orders 

completed in 2008, by date of completion......................................................................... A-14 

A.9 Section 337 investigations and related proceedings completed by the U.S. International 

Trade Commission during 2008 and those pending on December 31, 2008..................... A-15 

A.10 Outstanding Section 337 exclusion orders as of December 31, 2008 .................................... A-24 

A.11 U.S. imports for consumption of leading GSP duty-free imports, 2008 ................................ A-29 

A.12 U.S. imports for consumption and imports eligible for GSP treatment, by import 

categories under the Harmonized Tariff Schedule, 2008 .................................................. A-30 

A.13 U.S. imports for consumption under AGOA provisions, by source, 2006-08........................ A-31 

A.14 U.S. imports for consumption of leading imports under AGOA, 2006-08 ............................ A-32 

A.15 U.S. imports for consumption under ATPA provisions, by source, 2006-08......................... A-33 

A.16 U.S. imports for consumption of leading imports under ATPA, 2006-08.............................. A-34 

A.17 U.S. imports for consumption under CBERA provisions, by source, 2006-08...................... A-35 

A.18 U.S. imports for consumption of leading imports under CBERA, 2006-08........................... A-36 

A.19 WTO dispute settlement cases to which the United States was a party, developments 

in 2008 ............................................................................................................................... A-37 
x

TABLE OF CONTENTS - Continued

Page

Appendix tables - Continued

A.20 NAFTA Chapter 19 substantive challenges to original and five-year review determinations 

 of USITC and Commerce, developments in 2008............................................................ A-43 

A.21 U.S. merchandise trade with the European Union, by SITC codes (revision 3), 2006-08 ..... A-44 

A.22 Leading exports to the European Union, by Schedule B subheading, 2006-08 ..................... A-45 

A.23 Leading imports from the European Union, by HTS subheading, 2006-08........................... A-46 

A.24 U.S. merchandise trade with Canada, by SITC codes (revision 3), 2006-08 ......................... A-47 

A.25 Leading exports to Canada, by Schedule B subheading, 2006-08 ......................................... A-48 

A.26 Leading imports from Canada, by HTS subheading, 2006-08 ............................................... A-49 

A.27 U.S. merchandise trade with China, by SITC codes (revision 3), 2006-08............................ A-50 

A.28 Leading exports to China, by Schedule B subheading, 2006-08............................................ A-51 

A.29 Leading imports from China, by HTS subheading, 2006-08.................................................. A-52 

A.30 U.S. merchandise trade with Mexico, by SITC codes (revision 3), 2006-08 ......................... A-54 

A.31 Leading exports to Mexico, by Schedule B subheading, 2006-08 ......................................... A-55 

A.32 Leading imports from Mexico, by HTS subheading, 2006-08............................................... A-56 

A.33 U.S. merchandise trade with Japan, by SITC codes (revision 3), 2006-08 ............................ A-58 

A.34 Leading exports to Japan, by Schedule B subheading, 2006-08 ............................................ A-59 

A.35 Leading imports from Japan, by HTS subheading, 2006-08.................................................. A-60 

A.36 U.S. merchandise trade with Korea, by SITC codes (revision 3), 2006-08............................ A-61 

A.37 Leading exports to Korea, by Schedule B subheading, 2006-08............................................ A-62 

A.38 Leading imports from Korea, by HTS subheading, 2006-08 ................................................. A-63 

A.39 U.S. merchandise trade with Taiwan, by SITC codes (revision 3), 2006-08 ......................... A-65 

A.40 Leading exports to Taiwan, by Schedule B subheading, 2006-08 ......................................... A-66 

A.41 Leading imports from Taiwan, by HTS subheading, 2006-08 ............................................... A-67 

A.42 U.S. merchandise trade with Brazil, by SITC codes (revision 3), 2006-08............................ A-68 

A.43 Leading exports to Brazil, by Schedule B subheading, 2006-08............................................ A-69 

A.44 Leading imports from Brazil, by HTS subheading, 2006-08 ................................................. A-70 

A.45 U.S. merchandise trade with India, by SITC codes (revision 3), 2006-08 ............................. A-71 

A.46 Leading exports to India, by Schedule B subheading, 2006-08 ............................................. A-72 

A.47 Leading imports from India, by HTS subheading, 2006-08................................................... A-73 
List of Frequently Used Abbreviations and 

Acronyms

AD Antidumping 

AGOA African Growth and Opportunity Act 

AIT American Institute in Taiwan 

ANVISA National Health Surveillance Agency (Brazil) 

APEC Asia-Pacific Economic Cooperation 

APHIS Animal and Plant Health Inspection Service (USDA) 

ATAA Alternative Trade Adjustment Assistance 

ATPA Andean Trade Preference Act 

ATPDEA Andean Trade Promotion and Drug Eradication Act 

BEA Bureau of Economic Analysis (USDOC) 

BECC Border Environment Cooperation Commission 

BIAC Business and Industry Advisory Committee (OECD) 

BSE Bovine Spongiform Encephalopathy 

CAFTA-DR Dominican Republic-Central America-United States Free Trade Agreement 

CBERA Caribbean Basin Economic Recovery Act 

CBTPA Caribbean Basin Trade Partnership Act 

CD Compact Disc 

CEC Commission for Environmental Cooperation (NAFTA) 

CITA Committee for the Implementation of Textile Agreements 

CLC Commission for Labor Cooperation (NAFTA) 

CNL Competitive Need Limitation 

COOL Country-of-origin Labeling 

CSR Corporate Social Responsibility 

CSQ Country Specific Quota 

CTD Committee on Trade and Development (WTO) 

CTI Committee on Trade and Investment (APEC) 

CVD Countervailing Duty 

DDA Doha Development Agenda 

DSB WTO Dispute Settlement Body 

DSU WTO Dispute Settlement Understanding 

DTAA Division of Trade Adjustment Assistance (USDOL) 

DVD Digital Video Disc 

EC European Communities 

EDA Economic Development Administration (USDOC) 

ECHA European Chemicals Agency 

EIAP Earned Import Allowance Program 

EIF Enhanced Integrated Framework 

ETA Employment and Training Administration 

EU European Union 

FAS Foreign Agricultural Service (USDA) 

FMCSA Federal Motor Carrier Safety Administration (USDOT) 

FTA Free Trade Agreement 

FTAA Free Trade Area of the Americas 

FTC Free Trade Commission (NAFTA) 

FY Fiscal Year 

xi

G-20 G-20 Bloc of Developing Countries 
xii

GATS General Agreement on Trade in Services 

GATT General Agreement on Tariffs and Trade 

GDP Gross Domestic Product 

GSP Generalized System of Preferences 

HCTC Health Coverage Tax Credit 

HOPE Haitian Hemispheric Opportunity through Partnership Encouragement Act 

HS Harmonized System 

HTS Harmonized Tariff Schedule of the United States 

IF Integrated Framework 

IIPA International Intellectual Property Alliance 

IMF International Monetary Fund 

IPR Intellectual Property Rights 

IT Information Technology 

ITA International Trade Administration (USDOC) 

JCCT U.S.-China Joint Commission on Commerce and Trade 

LCIA London Court of International Arbitration 

LDBDC Least-Developed Beneficiary Developing Country 

LTFV Less Than Fair Value 

MOU Memorandum of Understanding 

NAAEC North American Agreement on Environmental Cooperation 

NAALC North American Agreement on Labor Cooperation 

NADB North American Development Bank 

NAFTA North American Free Trade Agreement 

NAMA Non-Agricultural Market Access 

NAO National Administrative Office 

NTR Normal Trade Relations 

OECD Organization for Economic Cooperation and Development 

OIE World Organization for Animal Health 

OOS Out of Service 

PRT Pathogen Reduction Treatments 

PSAG Private Sector Advisory Group 

REACH Registration, Evaluation, and Authorization of Chemicals 

SCM Subsidies and Countervailing Measures 

SED U.S.-China Strategic Economic Dialogue 

SITC Standard Industrial Trade Classification 

SLA Softwood Lumber Agreement 

SMEs Square Meter Equivalents 

SPS Sanitary and Phytosanitary Standards 

SSA Sub-Saharan Africa 

SVE Small and Vulnerable Economy 

TAA Trade Adjustment Assistance 

TAAC Trade Adjustment Assistance Center 

TAATC Division of Trade Agreement Administration and Technical Cooperation (USDOL) 

TEC Transatlantic Economic Council 

TIFA Trade and Investment Framework Agreement 

TNC Trade Negotiations Committee 

TPA Trade Promotion Agreement 

TPF Trade Policy Forum 

TPP Trans-Pacific Strategic Economic Partnership 

TRIPS Trade-Related Aspects of Intellectual Property Rights 

TRQ Tariff Rate Quota 
xiii

UN United Nations 

UNCTAD United Nations Conference on Trade and Development 

USDA United States Department of Agriculture 

USDOC United States Department of Commerce 

USDOL United States Department of Labor 

USDOS United States Department of State 

USDOT United States Department of Transportation 

USITC United States International Trade Commission 

USTR United States Trade Representative 

VOIP Voice Over Internet Protocol 

WIPO World Intellectual Property Organization 

WTO World Trade Organization 

EXECUTIVE SUMMARY 

The expansion of the U.S. economy that began in November 2001 slowed notably in 

2008, particularly in the second half of the year as financial market instability deepened, 

credit tightened, and asset values declined at an accelerating pace. Slower growth in both 

the U.S. and world economies contributed to the decline in both U.S. exports and imports 

in the fourth quarter of 2008. For the year as a whole, the U.S. trade deficit for goods and 

services decreased for a second consecutive year as the surplus in services grew more 

than the deficit in goods (figure ES.1). There was a small increase in the merchandise 

trade deficit from 2007 to 2008 ($819.4 billion in 2007 to $820.8 billion in 2008) as the 

increase in U.S. imports exceeded the increase in U.S. exports; the deficit increased 

slightly even though U.S. exports grew more rapidly than U.S. imports (12 percent for 

exports versus 7 percent for imports) for the third year in a row. Increases in U.S. exports 

of oil and other mineral fuels, lubricants, and related materials; chemicals and related 

products; food and live animals; machinery and transport equipment; and crude materials 

(except fuels) represented about 80 percent of the total increase in exports in 2008, while 

increases in U.S. imports of oil and other mineral fuels, lubricants, and related materials, 

and chemicals and related products represented most of the increase in imports for the 

same year. Much of the growth in the value of U.S. exports and imports of oil and other 

mineral fuels, lubricants, and related products was due to the substantial increase in the 

FIGURE ES.1 U.S. trade balance in goods and services, 1986-2008 

-1,000

-800

-600

-400

-200

0

200

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Billion dollars

U.S. goods trade balance

U.S. services trade balance

Source: U.S. Department of Commerce. 

xv
xvi

price of petroleum products from 2007 to 2008. U.S. imports of machinery and transport 

equipment decreased substantially ($20.8 billion) in 2008. The U.S. surplus in services 

trade increased by $20.6 billion to $139.7 billion in 2008. 

In 2008, the U.S. dollar appreciated approximately 9 percent, on a trade-weighted 

average basis, against a group of major currencies including the Canadian dollar, the 

euro, the Japanese yen, and the Chinese yuan. This reflects a sharp reversal in the value 

of the U.S. dollar, which continued to fall through the second and third quarters before 

appreciating substantially during the fourth quarter of the year. By year-end the largest 

appreciation was against the British pound, the Mexican peso, and the currency of the 

United States’ largest trading partner, Canada. In contrast, the U.S. dollar depreciated 

against the Japanese yen and the Chinese yuan. 

A summary of U.S. trade agreement activities in 2008 is presented below, followed by a 

table summarizing key developments on a monthly basis for the year. Trade agreement 

activities during 2008 included the administration of U.S. trade laws and regulations; 

U.S. participation in the World Trade Organization (WTO), the Organization for 

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

Cooperation (APEC) forum; U.S. negotiation of and participation in free trade 

agreements (FTAs); and bilateral developments with major trading partners. 

Key Trade Developments in 2008 

Administration of U.S. Trade Laws and Regulations 

Section 301: There was one active case under section 301 in 2008. This case concerned 

the European Union’s (EU) meat hormone directive. A WTO panel issued a report on the 

matter in March 2008, and the panel report was appealed to the Appellate Body, which 

issued its report in October 2008. The Appellate Body was unable to determine whether 

the EU’s modified hormone regime was WTO-consistent, but confirmed that the original 

authorization to impose additional duties was still valid. In May 2009, the United States 

and EU signed a Memorandum of Understanding to settle the dispute. 

Special 301: The USTR’s 2008 special 301 report identified nine countries on the 

priority watch list and highlighted weak intellectual property rights (IPR) protection and 

enforcement in China and Russia, both of which were maintained on the priority watch 

list. In addition, Argentina, Chile, India, Israel, Thailand, and Venezuela were maintained 

on the priority watch list due to significant concerns regarding IPR protection. Pakistan 

was elevated to the priority watch list from the watch list because Pakistan failed to make 

progress in enacting legislation to provide more effective protection for patented 

pharmaceuticals. Thirty-six countries were placed on the watch list, including Egypt, 

Lebanon, Turkey, and Ukraine, which were downgraded from the priority watch list, and 

Algeria, Greece, Norway, and Spain, which were added to the watch list. Belize and 

Lithuania were removed from the watch list due to improved IPR enforcement. 

Antidumping investigations: The Commission instituted 13 new antidumping 

investigations and completed 32 during 2008. Antidumping duty orders were issued by 

the U.S. Department of Commerce (Commerce) in 2008 in 23 of those completed 

investigations. 
xvii

Countervailing duty investigations: The Commission instituted six new countervailing 

duty investigations and completed seven investigations during 2008. Countervailing duty 

orders were issued by Commerce in 2008 in all seven completed investigations. 

Sunset reviews: During 2008, Commerce and the Commission instituted 26 sunset 

reviews of existing antidumping and countervailing duty orders and suspension 

agreements and the Commission completed 25 reviews, resulting in 16 antidumping and 

countervailing duty orders and suspension agreements being continued for five additional 

years. 

Section 337 investigations: During 2008, there were 89 active section 337 investigations 

and ancillary proceedings, 47 of which were instituted in 2008. Of these 47, there were 

41 new section 337 investigations and 6 new ancillary proceedings relating to previously 

concluded investigations. Approximately one-third of the active investigations in 2008 

concerned products in the semiconductor, telecommunications, computer, and consumer 

electronics fields. At the close of 2008, 52 section 337 investigations and related 

proceedings were pending. 

Trade adjustment assistance (TAA): In 2008, the U.S. Department of Labor instituted 

investigations in response to 2,129 petitions for TAA that it received during 2008. A total 

of 1,469 petitions were certified as eligible for the affected workers to apply for TAA 

benefits and services, and 464 petitions were denied. 

Trade Preference Programs 

Generalized System of Preferences (GSP): Duty-free U.S. imports entered under the 

GSP program totaled $31.7 billion in 2008. Angola was the leading GSP beneficiary in 

2008, followed by India, Thailand, Equatorial Guinea, Brazil, and Indonesia. During 

2008, Solomon Islands was designated a least-developed GSP beneficiary (Solomon 

Islands was already a GSP beneficiary), and Kosovo and Azerbaijan were designated 

GSP beneficiaries. Trinidad and Tobago was graduated from the GSP program effective 

January 1, 2010, for reaching high income. Authorization for the GSP program is 

currently set to expire on December 31, 2009. 

African Growth and Opportunity Act (AGOA): A total of 41 sub-Saharan African (SSA) 

countries were designated for benefits under AGOA during 2008, and 27 SSA countries 

were eligible for AGOA textile and apparel benefits. Duty-free U.S. imports under 

AGOA, including GSP, were valued at $66.3 billion in 2008. U.S. imports under AGOA, 

exclusive of GSP, were valued at $56.4 billion in 2008, a 33.4 percent increase from 

2007. The increase in imports under AGOA was driven mainly by increases in the value 

of U.S. imports of petroleum-related products, which made up more than 93 percent of 

imports under AGOA in 2008. 

Andean Trade Preference Act (ATPA): ATPA, as amended by the Andean Trade 

Promotion and Drug Eradication Act (ATPDEA), provides duty-free treatment for certain 

products of Bolivia, Colombia, Ecuador, and Peru. U.S. imports under ATPA were 

valued at $17.2 billion in 2008, up 40.1 percent from $12.3 billion in 2007. U.S. imports 

under ATPA increased from all of the beneficiary countries except Bolivia in 2008. The 

increase in imports under ATPA was driven primarily by increases in the value of 

petroleum-related imports, which accounted for 77 percent of imports under ATPA in 

2008. Other leading imports under ATPA in 2008 included apparel, copper cathodes, 

fresh cut flowers, and asparagus. On October 16, 2008, ATPA was extended until 
xviii

December 31, 2009, for Colombia and Peru, and until June 30, 2009, for Bolivia and 

Ecuador, with provisions for reviews of their eligibility under ATPA requirements. 

Effective December 15, 2008, President Bush suspended Bolivia from eligibility for 

failing to meet ATPA=s counternarcotics cooperation criteria. 

Caribbean Basin Economic Recovery Act (CBERA): CBERA, as amended by the 

Caribbean Basin Trade Partnership Act (CBTPA), provides duty-free and reduced-duty 

treatment for certain products of designated Caribbean Basin countries. In 2008, articles 

from 19 countries and territories were eligible for CBERA preferences. U.S. imports 

under CBERA were valued at $4.7 billion in 2008, a 14.0 percent decline from $5.5 

billion in 2007. The decline in U.S. imports under CBERA was due primarily to the fact 

that the Dominican Republic was a CBERA beneficiary for only part of 2007 before the 

United States-Dominican Republic-Central America Free Trade Agreement (U.S.-

CAFTA-DR) entered into force for that country. Trinidad and Tobago was the leading 

supplier of U.S. imports under CBERA in 2008. Methanol, mineral fuels, fuel-grade 

ethanol, and apparel products ranked as the leading U.S. imports under CBERA in 2008. 

In May, special preferences for imports from Haiti were extended through September 30, 

2018, in amendments to CBERA under the Haitian Hemispheric Opportunity through 

Partnership Encouragement Act of 2008 (HOPE II Act). Also in May, the CBTPA 

provisions of CBERA were extended through September 30, 2010. 

WTO and OECD 

WTO developments: The Doha Development Agenda of multilateral trade negotiations 

resumed in February 2008 after the negotiating texts for the Agriculture Negotiating 

Group and the Non-Agricultural Market Access Group were revised. However, the talks 

reached an impasse on July 29, 2008. The WTO Director-General announced that 

fundamental differences between parties had not been overcome, citing in particular a 

lack of convergence regarding the selective safeguard mechanism in the agriculture 

negotiations. The WTO announced in July 2008 the first Executive Director of the 

Enhanced Integrated Framework, an initiative by six multilateral economic and financial 

institutions—including the WTO—to help least-developed country governments better 

integrate trade-related technical assistance into their overall national development 

strategies. Ukraine and Cape Verde acceded to the WTO in 2008 as the 152nd and 153rd

WTO members, respectively. 

WTO dispute settlement: During 2008, WTO members filed 19 new requests for WTO 

dispute settlement consultations, compared to 13 in 2007, 22 in 2006, and 12 in 2005. 

The United States filed 3 of the 19 requests, with two directed against China and one 

against the EU. Six requests for consultations were filed against the United States. Five 

new dispute settlement panels were established in 2008, compared to 14 in 2007, 14 in 

2006, and 7 in 2005. One of the five panels was established in 2008 at the request of the 

United States to examine EU tariff treatment of certain information technology products. 

Two panels were established at the request of Japan and Chinese Taipei to examine the 

same EU matter. The remaining two panels were established at the request of New 

Zealand to examine Australia’s import measures on apples from New Zealand and at the 

request of the Philippines to examine Thailand’s customs and fiscal measures on 

cigarettes from the Philippines. 
xix

OECD developments: The OECD Trade Committee held discussions focused on 

systemic policy issues relating to trade agreements and nontariff measures. The 

committee continued its Global Forum on Trade, bringing together public and private 

groups on particular trade topics, and considered inviting certain nonmember 

governments as ad hoc observers to the OECD as part of its outreach program. The 

committee also reviewed Aid for Trade issues, and selected trade issues concerning the 

trade policy of Brazil (a non-OECD country). 

FTA Developments During 2008 

U.S. FTAs in force in 2008: The United States was a party to nine FTAs as of December 

31, 2008. These included a multiparty agreement with the countries of Central America 

and the Dominican Republic (U.S.-CAFTA-DR), entered into force with respect to the 

Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua (2006-07); the 

U.S.-Bahrain FTA (2006); the U.S.-Morocco FTA (2006); the U.S.-Australia FTA 

(2005); the U.S.-Chile FTA (2004); the U.S.-Singapore FTA (2004); the U.S.-Jordan 

FTA (2001); the North American Free Trade Agreement (NAFTA) (1994); and the U.S.-

Israel FTA (1985). 

FTA developments: In September 2008, the United States announced the launch of 

negotiations to join the Trans-Pacific Strategic Economic Partnership Agreement 

between Brunei Darussalam, Chile, New Zealand, and Singapore. In December 2008, the 

President issued proclamations implementing U.S.-CAFTA-DR for Costa Rica and the 

U.S.-Oman FTA effective January 1, 2009. 

U.S. merchandise trade flows with FTA partners: In 2008, U.S. merchandise exports to 

FTA partners increased 8.0 percent to $444.2 billion or 38 percent of total U.S. exports. 

U.S. imports of goods from FTA partners increased 4.7 percent to $625.8 billion or 30 

percent of total U.S. imports. The United States registered a merchandise trade deficit 

with its FTA partners of $181.6 billion in 2008, including a record deficit with its 

NAFTA partners of $197.2 billion. Excluding NAFTA, the United States registered a 

trade surplus with the rest of the FTA partners of $15.6 billion, up from $3.9 billion in 

2007. 

NAFTA developments: NAFTA entered into force on January 1, 1994, and the last of its 

trade provisions was fully implemented by January 1, 2008, with the exception of the 

NAFTA cross-border trucking provisions. In 2008, U.S. two-way merchandise trade 

(exports plus imports) with NAFTA partners totaled $905.1 billion, a 5.8 percent increase 

over 2007. 

NAFTA dispute settlement: Chapter 11 of NAFTA includes provisions designed to 

protect cross-border investors and facilitate the settlement of investment disputes. In 

2008, there were five active chapter 11 cases—two cases against the United States by 

Canadian investors and three cases filed by U.S. investors against Mexico. Chapter 19 of 

NAFTA contains a mechanism that provides for review by a binational panel of 

antidumping and countervailing duty determinations under the law of the importing 

country. At the end of 2008, the NAFTA Secretariat listed 10 active binational panels 

under chapter 19. Of the four binational panels formed in 2008 under chapter 19, three 

challenged U.S. agencies’ determinations on products from Mexico and one involved 

products from Canada. 
xx

 

Trade Activities with Major Trading Partners 

European Union 

The EU1

 as a unit was the largest two-way (exports and imports) U.S. merchandise 

trading partner in 2008. U.S. trade with the EU was valued at $615 billion in 2008, 

accounting for 18.9 percent of U.S. merchandise trade with the world. U.S. exports to the 

EU amounted to $251 billion and U.S. imports from the EU were $364 billion, resulting 

in a U.S. merchandise trade deficit with the EU of $112 billion in 2008. Leading U.S. 

exports included certain medicaments, petroleum products, aircraft and parts, blood 

fractions (e.g., antiserum), and passenger cars. Leading U.S. imports were certain 

medicaments, petroleum products, passenger cars, nucleic acids and their salts, and 

airplanes and parts. The EU was also the United States’ largest trading partner in terms 

of services in 2008, accounting for 37.4 percent of U.S. services trade with the world. 

The United States registered a trade surplus in services of $58.0 billion with the EU in 

2008. 

The Transatlantic Economic Council, established in 2007 to guide efforts to lower 

bilateral trade and investment barriers, addressed a number of topics in 2008, including 

regulatory cooperation, the EU chemicals regulation known as REACH (Registration, 

Evaluation and Authorization of Chemicals), and the EU ban on imports of U.S. poultry 

meat treated with pathogen reduction substances. 

Canada 

Canada was the largest single-country two-way U.S. merchandise trading partner in 2008. 

U.S. merchandise trade with Canada was valued at $557 billion in 2008, accounting for 

17.1 percent of total U.S. merchandise trade. U.S. exports to Canada were valued at $222 

billion and U.S. imports from Canada amounted to $335 billion, resulting in a 

merchandise trade deficit of $112 billion. Leading U.S. exports to Canada in 2008 

included motor vehicles and related products as well as energy products, including 

petroleum, natural gas, and electricity. Leading U.S. imports included crude petroleum, 

natural gas, and passenger vehicles. The United States registered a trade surplus in 

services of $22.7 billion with Canada in 2008. 

Under dispute settlement procedures of the 2006 U.S.-Canada Softwood Lumber 

Agreement, the London Court of International Arbitration determined in March 2008 that 

Canada failed to properly adjust its export quota levels for softwood lumber in the first 

half of 2007, as the United States contended. In February 2009, the tribunal issued its 

determination concerning an appropriate remedy to correct the breach in the agreement. 

In January 2008, the United States requested a second arbitration tribunal to consider a 

U.S. challenge of several Canadian provincial programs concerning softwood lumber. 

1

 The 27 members of the EU in 2008 were Austria, Belgium, Bulgaria, Cyprus, Czech Republic, 

Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, 

Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, 

and the United Kingdom. 
xxi 

China 

In 2008, U.S. merchandise trade with China was valued at $405 billion, accounting for 

approximately 12.4 percent of U.S. merchandise trade with the world. U.S. exports to 

China were valued at $67.2 billion and U.S. imports from China amounted to $338 

billion, resulting in a merchandise trade deficit of $270 billion. Leading U.S. exports in 

2008 included soybeans, computer chips, passenger airplanes, and copper and aluminum 

waste and scrap. Leading U.S. imports from China in 2008 were computers and their 

parts, wireless telephones, toys, and video games and their parts. The United States 

registered a trade surplus in services of $6.2 billion with China in 2008. 

China’s compliance with its WTO commitments remained a focus of U.S.-China trade 

relations in 2008. Notable areas of U.S. concern were China’s IPR enforcement policies, 

textile and apparel trade, financial sector liberalization, product safety, and environmental 

sustainability. Also during 2008, U.S. and Chinese officials held bilateral discussions to 

address global trade imbalances and China’s exchange rate policy. 

Mexico 

In 2008, U.S. merchandise trade with Mexico was valued at $348 billion, accounting for 

approximately 10.7 percent of U.S. merchandise trade with the world. U.S. exports to 

Mexico were $132 billion and U.S. imports from Mexico were $216 billion, resulting in a 

merchandise trade deficit of $84.8 billion. Leading U.S. exports to Mexico included 

refined petroleum products, motor vehicles and parts, corn, computer components, and 

soybeans. Leading U.S. imports from Mexico included crude petroleum, motor vehicles 

and parts, televisions, cellular telephones, and medical instruments. The United States 

registered a trade surplus in services of $8.3 billion with Mexico in 2008. 

In 2008, the U.S. Department of Transportation evaluated the one-year Cross-Border 

Trucking Demonstration Project. In August 2008, the U.S. Department of Transportation 

extended the demonstration program for two years until 2010; however, the program was 

terminated in January 2009, when the Congress discontinued its funding. 

Japan 

U.S. merchandise trade with Japan was valued at $201 billion, accounting for 

approximately 6.2 percent of U.S. merchandise trade with the world in 2008. U.S. exports 

to Japan amounted to $61.4 billion and U.S. imports from Japan were $139 billion, 

resulting in a U.S. merchandise trade deficit of $77.7 billion. Leading exports to Japan 

were corn, aircraft and parts, wheat, soybeans, and pharmaceuticals. Leading imports 

from Japan were motor vehicles and parts, printer parts, digital cameras, and airplane and 

jet parts. The U.S. services trade surplus with Japan was $17.3 billion in 2008. 

The U.S.-Japan Economic Partnership for Growth has served as the primary forum for 

trade and economic dialogue between the two countries since its establishment in 2001. 

In 2008, discussions under this framework focused on U.S. beef exports to Japan and 

deregulation of Japan’s economy, including economy-wide and sector-specific reforms. 
xxii 

Korea 

U.S. merchandise trade with Korea was valued at $79.8 billion, accounting for 

approximately 2.4 percent of U.S. merchandise trade with the world in 2008. U.S. exports 

to Korea amounted to $33.1 billion and U.S. imports from Korea were $46.7 billion, 

resulting in a U.S. merchandise trade deficit of $13.6 billion. Leading U.S. exports to 

Korea during the year included corn, aircraft, transistors, and ferrous waste and scrap. 

Leading U.S. imports from Korea included cellular phones, automobiles, computer parts 

and accessories (mainly memory modules), and computer chips. The U.S. trade surplus in 

services with Korea was $7.0 billion. 

U.S. trade relations with Korea in 2008 were dominated by the status of the U.S.-Korea 

FTA that was signed in June 2007, and the agreement on a protocol to resume exports of 

U.S. beef to Korea that had been suspended originally over bovine spongiform 

encephalopathy (BSE) concerns in late 2003. 

Taiwan 

U.S. merchandise trade with Taiwan was valued at $59.8 billion, accounting for 

approximately 1.8 percent of U.S. merchandise trade with the world in 2008. U.S. exports 

to Taiwan amounted to $23.6 billion and U.S. imports from Taiwan were $36.2 billion, 

resulting in a U.S. merchandise trade deficit of $12.6 billion. Leading U.S. exports to 

Taiwan included processors and controllers for computers, electronic integrated circuits, 

semiconductor manufacturing and assembly equipment, soybeans, and aircraft. Leading 

U.S. imports from Taiwan included electronic digital integrated circuits, wireless 

telephones, reception apparatuses for navigational radios, parts for data processing 

machines, and reception apparatuses for televisions. The U.S. registered a trade deficit in 

services with Taiwan of $291.0 million. 

U.S. trade relations with Taiwan during 2008 focused on the USTR’s removal of Taiwan 

from the watch list of IPR violators, providing U.S. beef and beef product companies 

with more comprehensive market access, and reforming Taiwan’s rice procurement 

practices. 

Brazil 

U.S. merchandise trade with Brazil was valued at $59.1 billion in 2008, accounting for 

approximately 1.8 percent of U.S. merchandise trade with the world. U.S. exports to 

Brazil amounted to $29.0 billion and U.S. imports from Brazil were $30.1 billion, 

resulting in a U.S. merchandise trade deficit of $1.0 billion. Leading U.S. exports to 

Brazil included aircraft and aircraft parts (including jet engines and parts), refined 

petroleum products, and coal. Leading U.S. imports from Brazil included crude 

petroleum, pig iron, aircraft, and refined petroleum products. The U.S. trade surplus in 

services with Brazil was $7.4 billion. 

In 2008, the USTR noted that Brazil had made important progress in improving the 

effectiveness of IPR enforcement, but also noted that more progress could be made. 
xxiii 

India 

U.S. merchandise trade with India was valued at $43.2 billion, accounting for 

approximately 1.3 percent of U.S. merchandise trade with the world in 2008. U.S. exports 

to India amounted to $17.3 billion and U.S. imports from India were $25.9 billion, 

resulting in a U.S. merchandise trade deficit of $8.5 billion. Leading U.S. exports to India 

included fertilizers, aircraft, nonindustrial diamonds, and nonmonetary gold. Leading 

U.S. imports from India included nonindustrial diamonds, gold jewelry, certain 

medicaments, linen, pipe for oil and gas lines, and apparel. The United States registered a 

trade deficit in services with India of $1.6 billion. 

U.S. trade relations with India during 2008 focused on negotiating a Bilateral Investment 

Treaty, continuing to promote sectoral openings (including alcoholic beverages), 

promoting regulatory cooperation, and cooperating on all aspects of protection of 

intellectual property and promotion of technology transfer. 
xxiv 

Table ES.1 Summary of 2008 trade agreement activities 

January

1-The North American Free Trade Agreement is 

fully implemented. 

1-United States-Japan Agreement on Mutual 

Recognition of the Results of Conformity 

Assessment Procedures (MRA) for 

telecommunications equipment entered into 

force.

22-The Czech Republic is placed on the USTR 

“Special 301” watch list as a result of an out-ofcycle review of intellectual property rights 

protection and enforcement. 

28-Antigua, Bermuda, and Costa Rica ask the 

WTO for dispute settlement arbitration in their 

efforts to seek compensation from the United 

States on its decision to alter its WTO services 

schedule by eliminating commitments on crossborder gambling services. 

February

18-The United States and the EU agree to 

suspend WTO dispute settlement arbitration 

proceedings concerning the EU’s 

implementation of the Dispute Settlement Body 

findings against measures affecting the approval 

and marketing of biotechnology products. 

19-The United States and Rwanda sign a 

Bilateral Investment Treaty. 

19-The fifth ministerial meeting is held under 

the U.S.-India Trade Policy Forum. 

29-President Bush signs legislation to extend 

trade preferences under ATPA until December 

31, 2008. 

March

4-The London Court of International Arbitration 

finds that Canada violated the Softwood Lumber 

Agreement by failing to adjust quota volumes of 

the Eastern Canadian provinces in the first six 

months of 2007 to account for rapidly changing 

market conditions. However, it also finds that 

this same condition does not apply to the 

Western provinces. 

14-Canada enacts a law to implement the 

Convention on the Settlement of Investment 

Disputes Between States and Nationals of Other 

States. 

27-Mexico agrees to open its market to all U.S. 

cattle younger than 30 months. 

April

1-The United States and Ukraine sign a Trade 

and Investment Cooperation Agreement. 

7-President Bush sends the U.S.-Colombia Free 

Trade Agreement to Congress. 

10-The U.S. House of Representatives votes to 

remove the timelines mandated by Trade 

Promotion Authority for consideration of the 

Free Trade Agreement with Colombia, 

effectively postponing a vote indefinitely. 

10-Mexico, Canada, and the United States 

amend NAFTA’s rules of procedure for 

AD/CVD panels. 

10-Chile opens its market to poultry from the 

United States after it approves U.S. control, 

inspection, and certification systems. 

18-The United States and Korea conclude an 

agreement on a protocol to fully reopen South 

Korea’s market to all U.S. beef and beef 

products consistent with international standards 

and the World Organization for Animal Health 

(OIE) guidelines. 
xxv 

April—Continued

25-In USTR’s annual “Special 301” report on 

intellectual property, the United States adds 

Algeria, Greece, Norway, and Spain to its watch 

list and Pakistan to its priority watch list. Egypt, 

Lebanon, Turkey, and Ukraine are moved from 

the priority watch list to the watch list. Belize 

and Lithuania are removed from the watch list. 

USTR announces out-of-cycle reviews for 

Taiwan and Israel to monitor progress on 

outstanding IPR issues. 

30-The WTO Appellate Body rules that U.S. use 

of “model zeroing” in antidumping proceedings 

against Mexican stainless steel is inconsistent 

with U.S. WTO obligations. 

May

16-Ukraine becomes a member of the WTO. 

22-CBTPA provisions of the Caribbean Basin 

Economic Recovery Act are extended through 

September 30, 2010. 

22-HOPE II Act passes Congress, extending and 

enhancing trade benefits for Haiti until 

September 30, 2018. 

June

4-OECD Ministerial Council meeting discusses 

trade, growth, and development issues, with 

special focus on the economics of climate 

change, sovereign wealth funds, and the current 

economic situation. 

9-U.S. Trade Policy Review held at the WTO. 

17-U.S.-China Strategic Economic Dialogue 

takes place in Annapolis, MD. 

June—Continued

20-After public controversy in Korea about the 

April 18 U.S.-Korea beef protocol, Korean beef 

importers and U.S. exporters reach a commercial 

understanding that only U.S. beef from cattle 

under 30-months of age will be shipped to Korea, 

as a transitional measure, to improve Korean 

consumer confidence in U.S. beef. 

20-The WTO DSB adopts the findings of the 

compliance panel and Appellate Body in favor 

of Brazil’s allegations that the United States had 

not implemented earlier WTO findings against 

U.S. agricultural support measures, including 

support for cotton farmers. 

July

14-The seventh annual AGOA Forum is held in 

Washington, DC. 

16-The United States signs a Trade and 

Investment Framework Agreement with the East 

African Community (Burundi, Kenya, Rwanda, 

Tanzania, and Uganda). 

16-The United States signs a Trade, Investment, 

and Development Cooperation Agreement with 

the Southern African Customs Union (Botswana, 

Lesotho, Namibia, South Africa, and Swaziland). 

23-Congress extends restrictions on imports 

from Burma for another year. 

23-Cape Verde becomes a member of the WTO. 

29-The WTO Doha trade negotiations in Geneva 

reach an impasse over a U.S. and India dispute 

on agricultural safeguards. 
xxvi 

August

1-The WTO DSB adopts the findings of the 

panel and Appellate Body in favor of Thailand 

and India in two separate cases addressing U.S. 

measures on imported shrimp, ruling that the 

United States violated its obligations under the 

WTO Antidumping Agreement. 

12-Jordan ratifies the WTO Agreement on 

Trade-Related Aspects of Intellectual Property 

Rights (TRIPs). 

18-The United States, Japan, and Chinese Taipei 

request a WTO dispute settlement panel to 

review whether the EU has failed to accord 

required duty-free treatment of certain products 

covered by the WTO Information Technology 

Agreement. 

September 

22-U.S. negotiations are launched to join the 

comprehensive Trans-Pacific Strategic 

Economic Partnership Agreement. 

October

1-The United States and Costa Rica reach an 

agreement on an extension of time for Costa 

Rica to join the U.S.-CAFTA-DR. 

16-President Bush signs legislation to extend 

trade preferences under ATPA and GSP, and to 

amend AGOA. 

16-The WTO Appellate Body issues a report 

largely affirming the earlier panel report that the 

United States did not violate its WTO 

obligations by maintaining sanctions on certain 

EU products after the EU claimed it had come 

into compliance by amending its ban on beef 

from animals treated with growth-promoting 

hormones. 

24-Mexico requests WTO consultations with the 

United States concerning U.S. limitations on the 

use of a dolphin-safe label for tuna and tuna 

products. 

October—Continued

30-The WTO Appellate Body rules in favor of 

the United States in its challenge against India’s 

“additional” and “extra-additional” duties on 

imports of wine, spirits, and other agricultural 

and manufactured products, but did not 

recommend that India be asked to remove the 

duties because neither side provided the 

necessary evidence to reach a factual finding. 

November

11-Costa Rica’s national assembly passes the 

final piece of legislation needed to implement 

U.S.-CAFTA-DR. 

13-China agrees to eliminate discriminatory 

restrictions on how U.S. and other foreign 

suppliers of financial information services do 

business in China, which the United States had 

challenged in a WTO dispute brought earlier in 

the year. 

19-The 20th APEC ministerial meeting takes 

place in Lima, Peru. 

21-Based on a final review of data collected 

through an import-monitoring program covering 

certain apparel products from Vietnam, the U.S. 

Department of Commerce finds insufficient 

evidence to self-initiate an antidumping 

investigation. 

26-The WTO Appellate Body rules against the 

EU in the compliance proceeding brought by the 

United States against its banana import regime. 

The Appellate Body also rules against the EU in 

a parallel proceeding brought by Ecuador. 

26-Thailand requests WTO dispute settlement 

consultations with the United States concerning 

certain issues (U.S. antidumping “zeroing 

methodology”) relating to the imposition of 

antidumping measures on polyethylene retail 

carrier bags. 
xxvii 

November—Continued

27-Brazil requests WTO dispute settlement 

consultations with the United States regarding 

the antidumping administrative review on 

certain orange juice from Brazil and various 

related U.S. laws, regulations, administrative 

procedures, practices, and methodologies. 

December

1-Canada requests WTO dispute settlement 

consultations with the United States on countryof-origin labeling (COOL) measures. 

4-U.S.-China Strategic Economic Dialogue 

takes place in Beijing, China. 

9-China requests the establishment of a WTO 

dispute settlement panel concerning U.S. final 

antidumping and countervailing duty orders on 

steel pipe, off-the-road tires, light-walled 

rectangular pipe and tube, and laminated woven 

sacks. 

10-Chinese Taipei accedes to the WTO 

Agreement on Government Procurement. 

15-Bolivia is suspended from ATPA eligibility 

for failing to meet the program’s 

counternarcotics cooperation criteria. 

15-The WTO Appellate Body generally upholds 

panel findings that China’s treatment of imports 

of U.S. and other foreign auto parts is 

inconsistent with China’s WTO obligations. 

17-A WTO compliance panel finds that the 

United States has failed to comply fully with the 

Appellate Body ruling concerning U.S. 

antidumping “zeroing methodology” in a 

successful challenge mounted by the EU. 

19-The United States requests WTO dispute 

settlement consultations with China regarding 

China’s “Famous Brands” programs. 

December—Continued

22-China requests a WTO dispute settlement 

panel to investigate U.S. antidumping and 

countervailing duties on Chinese products. 

23-The United States Trade Representative 

releases its seventh annual report on China’s 

compliance with its WTO accession obligations. 

23-The President issues a proclamation 

implementing the U.S.-CAFTA-DR for Costa 

Rica on January 1, 2009. 

29-The United States and Russia sign a protocol 

to the 2005 U.S.-Russia agreement on trade in 

certain types of poultry, beef, and pork. 

29-The President issues a proclamation 

implementing the U.S.-Oman FTA on January 1, 

2009. 

31-U.S. quotas on textile and apparel imports 

from China expire. 

Sources: Compiled from multiple U.S. 

government sources, including the Office of the 

U.S. Trade Representative. Other sources 

include Inside Washington Publishers, Inside 

U.S. Trade; Bureau of National Affairs, 

International Trade Daily; Foreign Affairs and 

International Trade Canada; the Organization for 

Economic Cooperation and Development; and 

the World Trade Organization. 

1-1

CHAPTER 1 

Overview of U.S. Trade 

Scope and Approach of the Report 

This report provides factual information on the operation of the U.S. trade agreements 

program and its administration for calendar year 2008.1

 Trade agreement activities during 

2008 include the administration of U.S. trade laws and regulations; U.S. participation in 

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

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

negotiation of and participation in free trade agreements (FTAs); and bilateral 

developments with major trading partners. 

The report is based on primary source materials about U.S. trade programs and 

administrative actions there under, including U.S. government reports, notices, and news 

releases, and publications and news releases by the U.S. International Trade Commission 

(USITC or the Commission). Additional primary sources of information include 

publications of international institutions, including the International Monetary Fund 

(IMF), World Bank, OECD, WTO, United Nations (UN), and official publications of 

foreign governments. Professional journals, trade publications, and news reports are used 

to provide supplemental factual information when primary source information is 

unavailable. 

Merchandise trade data are provided the primary focus throughout the report except for 

chapters 1 and 5, which also provide data on services trade as compiled by the 

Commission primarily from the U.S. Bureau of Economic Analysis (BEA) of the U.S. 

Department of Commerce and the IMF. 

Overview of the U.S. Economy in 2008 

The expansion of the U.S. economy that began in November 2001 slowed notably in 

2008. 2 In particular, U.S. economic activity dropped sharply at the end of 2008, as 

financial market instability intensified, credit conditions tightened, and asset values 

declined at an accelerating pace.3

 The first half of the year saw increasing inflationary 

 

1 This is the 60th in a series of annual reports submitted to the U.S. Congress under section 163(c) of 

the Trade Act of 1974 (19 U.S.C. 2213(c)) and its predecessor legislation. 2 White House, Economic Report of the President, January 2009, 20. In 2008, the U.S. economy 

underwent severe economic and financial turmoil. In response, the Federal Reserve Bank and the U.S. 

Department of the Treasury implemented various programs to address the situation. White House, Economic 

Report of the President, January 2009 and Board of Governors of the Federal Reserve System, Monetary 

Policy Report to the Congress, February 2009. In addition, the Business Cycle Committee of the National 

Bureau of Economic Research (NBER) determined that a peak in economic activity occurred in the U.S. 

economy in December 2007. The peak marked the end of the expansion that began in November 2001 and 

the beginning of a recession. NBER, Business Cycle Dating Committee, “Determination of the December 

2007 Peak in Economic Activity.” 3

 U.S. Board of Governors of the Federal Reserve System, Monetary Policy Report, February 2009, 1. 
pressure as a result of higher prices for energy and other commodities and depreciation of 

the U.S. dollar against most other major currencies. The second half of the year saw 

declining prices for energy and other commodities and strengthening of the U.S. dollar in 

most foreign exchange markets.4

U.S. real gross domestic product (GDP)—the output of goods and services produced by 

labor and property located in the United States—increased by 1.1 percent in 2008, 

following 2.0 percent growth in 2007. 5 Exports of goods and services, personal 

consumption expenditures for services, and federal, state, and local government spending 

were the leading contributors to real growth in 2008. This overall growth was partially 

offset by declines in residential fixed investment, personal consumption expenditures for 

goods, and an increase in imports of goods and services.6

 Notably, in the second half of 

2008, the financial and economic strains—initially triggered by the end of the housing 

boom in the United States and other countries, together with the problems in mortgage 

markets—intensified.7

Growth in the first half of 2008 was followed by a 0.5 percent decline in real GDP in the 

third quarter and a sharp 6.3 percent decline in the fourth quarter (figure 1.1).8 The fourth 

quarter decline reflected negative contributions from exports of goods and services, 

residential and nonresidential fixed investment, and personal consumption expenditures, 

which were partially offset by positive contributions from federal government spending.9

FIGURE 1.1 U.S. real gross domestic product, in percent change, 2001-08 

2001 2002 2003 2004 2005 2006 2007 2008 Q1 Q2 Q3 Q4

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

Percent, annual rate

2008

Source: U.S. Department of Commerce. 

 

4

 Ibid. 

5 USDOC, BEA, “Gross Domestic Product,” March 26, 2009, table 1. 6

 Ibid. 

7 Board of Governors of the Federal Reserve System, Monetary Policy Report, February 2009, 1. 8

 USDOC, BEA, “Gross Domestic Product,” March 26, 2009, table 1. 

1-2

9

 Ibid. According to the BEA, gross private domestic investment declined by 20.8 percent and personal 

consumption expenditures decreased by 4.3 percent, whereas government spending increased by 1.6 percent 

in the fourth quarter of 2008. 
1-3 

 

In contrast to the first half of the year when there was a robust global demand for U.S. 

exports in part due to the depreciation of the dollar, U.S. exports decreased by 23.6 

percent in the fourth quarter of 2008 compared to the same period in 2007, in response to 

a robust re-appreciation of the dollar and the decline in foreign economic activity. The 

decline in trade flows in the latter part of the year was widespread as the global economic 

downturn affected most U.S. trade partners. World real GDP growth declined from 4.1 

percent in 2007 to 2.2 percent in 2008 and world real trade growth declined from 6.9 

percent in 2007 to 2.5 percent in 2008. 10 In 2008, the U.S. economy again recorded 

growth (1.1 percent) that either equaled or exceeded that of some other major 

industrialized countries and areas, including the euro area (0.7 percent), the OECD (0.8 

percent), Canada (0.5 percent), and Japan (-0.7 percent). 11 However, U.S. economic 

growth was below the world average GDP growth rate of 3.4 percent, as well as that of 

Mexico (1.3 percent) and China (9.0 percent).12

Exchange Rate Trends 

The U.S. dollar appreciated 9 percent in 2008 on a trade-weighted average basis against a 

basket of currencies including the Canadian dollar, the euro, the Japanese yen, and the 

Chinese yuan.13 This reflects a sharp reversal in the value of the U.S. dollar from a small 

relative depreciation—against the euro, peso, yen, and yuan through the second and third 

quarters—to a substantial appreciation in the fourth quarter of 2008 against most major 

currencies, except the yen and the yuan (figure 1.2).14 For the year as a whole, the U.S. 

dollar appreciated 35.6 percent against the British pound, 26.9 percent against the 

Mexican peso, 23.4 percent against the Canadian dollar, and 5.9 percent against the euro 

(figure 1.2). 15 The strengthening of the dollar during the second half of the year was 

attributable to, among other factors, the expectation by foreign investors that the decline 

in foreign economic growth relative to the decline in U.S. economic growth would be 

more severe than previously anticipated and to an increase in demand for the relative 

safety of U.S. assets such as Treasury securities.16 In contrast, the dollar depreciated 17.2 

percent against the Japanese yen, as Japanese investors sold foreign assets mainly in 

response to market volatility. The dollar also depreciated 6.5 percent against the Chinese 

yuan, the majority of which took place in the first half of the year. 

10 OECD Economic Outlook, Interim Report, 9. 11 OECD Annual National Accounts, 2009. 

12 Ibid. 

13 According to the Federal Reserve’s broadest measure of the nominal trade-weighted foreign 

exchange value of the dollar. U.S. Federal Reserve Board, “Foreign Exchange Rates-Broad Index.” 14 Ibid. 

15 U.S. Federal Reserve Board, “Foreign Exchange Rates-Historical Data.” 

16 Board of Governors of the Federal Reserve System, Monetary Policy Report, February 2009, 29. 
FIGURE 1.2 Indices of exchange rates for selected major currencies in relation to the U.S. dollar, daily, 2008a

60

80

100

120

140

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

January 2, 2008 = 100

Euro Yen Yuan Peso Pound Canadian dollar

Depreciation $ Appreciation

Source: U.S. Federal Reserve Board. 

a Units of the foreign currency per unit of the U.S. dollar. A decrease in the index represents a depreciation in the U.S. dollar

relative to the foreign currency, and an increase in the index represents an appreciation of the U.S. dollar relative to the foreign 

currency. 

Balance of Payments17

The U.S. current account deficit—the combined balances in trade in goods and services, 

income, and net current unilateral transfers—decreased from $731.2 billion in 2007 to 

$673.3 billion in 2008.18 As a share of U.S. GDP, the current account deficit was 4.7 

percent in 2008, down from 5.3 percent in 2007. The decline was due to the increases in 

surpluses in income and in services. The deficit in goods trade increased slightly from 

 

17 Trade data in this section of the report may not match data in other sections or in the report appendix 

because it is reported on a balance of payments (BOP) basis. Total goods data are reported on a BOP basis 

whereas commodity and country detailed data for goods are on a Census basis. The Census basis data for 

goods used elsewhere in this report are compiled from the documents collected by the U.S. Customs Service 

and reflect the movement of goods between foreign countries and the 50 states, the District of Columbia, 

Puerto Rico, the U.S. Virgin Islands, and U.S. foreign trade zones. Data on goods compiled on a Census basis 

are adjusted by the USDOC BEA to a BOP basis to bring the data in line with the concepts and definitions 

used to prepare the international and national accounts. These adjustments are made to supplement coverage 

of the Census basis data, to eliminate duplication of transactions recorded elsewhere in the international 

accounts, and to value transactions according to a standard definition. For a more detailed discussion of the 

differences between BOP basis and Census basis data, see USDOC, BEA, “Information on Goods and 

Services” in USDOC, BEA, “International Economic Accounts,” December 2008. For further information on 

data sources and definitions, see USDOC, Census Bureau (CB), BEA, “International Economic Accounts—

U.S. International Trade in Goods and Services: December 2008,” March 2009, A-1. 

1-4 

18 USDOC, BEA, “International Economic Accounts—U.S. International Transactions: Fourth Quarter 

and Year 2008, Current Account.” March 18, 2009. 
1-5 

 

$819.4 billion in 2007 to $820.8 billion in 2008. The surplus in income increased from 

$81.7 billion in 2007 to $127.6 billion in 2008.19

The trade surplus in services increased from $119.1 billion in 2007 to $139.7 billion in 

2008.20 Exports of services increased to $544.4 billion in 2008 from $497.2 billion in 

2007. Although nearly all service categories experienced an increase in exports, the 

largest increases were in “other” private services (which includes business, professional, 

and technical services; insurance services; and financial services); travel; “other” 

transportation (such as freight and port services); passenger fares; royalties; and license 

fees. Imports of services increased from $378.1 billion in 2007 to $404.7 billion in 2008. 

All import service categories increased, and the largest increases were in “other” private 

services, “other” transportation, passenger fares, travel, and direct defense expenditures.21

In 2008, net financial inflows were $546.6 billion, down from $774.3 billion in 2007.22

Trade in Goods and Services 

The U.S. trade deficit for goods and services decreased in 2008 for a second consecutive 

year as the surplus in services grew more than the deficit in goods. The goods and 

services deficit decreased by $19.1 billion in 2008 to $681.1 billion (4.8 percent of GDP), 

from $700.3 billion in 2007 (5.1 percent of GDP).23 U.S. exports of goods and services, 

on a seasonally adjusted U.S. balance-of-payments (BOP) basis, were valued at $1,835.8 

billion in 2008, and U.S. imports of goods and services were valued at $2,516.9 billion. 

Goods exports and imports were $1,291.4 billion and $2,112.2 billion, respectively, 

resulting in a goods deficit of $820.8 billion, up $1.4 billion from 2007. For services, 

exports exceeded imports, which resulted in a services trade surplus of $139.7 billion—

$20.6 billion more than the 2007 surplus of $119.1 billion.24 

The trade deficit decreased considerably at the end of 2008, due in part to a sharp decline 

in the price of oil.25 However, during the first half of the year the price of oil rose to 

historic levels, reaching a monthly average of $134 per barrel in July, and then fell 

sharply during the second half to $41 per barrel in December (figure 1.3). For the year as 

a whole, the value of imports of petroleum and petroleum products increased by 37.0 

percent to $453.3 billion, reflecting an increase in the price of oil (the volume of imports

19 The balance in income is income receipts (including income receipts on U.S.-owned assets abroad 

and compensation of U.S. employees abroad) less income payments (including income payments on foreignowned assets in the United States and compensation of foreign employees in the United States). 20 Services trade data are reported here on a BOP basis for purposes of comparison with merchandise 

trade figures. BOP data include trade in private services, as well as transfers under U.S. military agency sales 

contracts and U.S. government purchases of miscellaneous services. USDOC, BEA, “International Economic 

Accounts—U.S. International Transactions: Current Account,” March 18, 2009, table 1. 21 U.S. trade in services is described in detail below. 

22 Net financial inflows are net acquisitions by foreign residents of assets in the United States less net 

acquisitions by U.S. residents of assets abroad. The main components of the financial account are capital 

transfers, foreign direct investment, portfolio investment, banking and other flows, statistical discrepancies, 

and official reserve assets. USDOC, BEA, “International Economic Accounts—U.S. International 

Transactions: Current Account,” March 18, 2009, 7 and table 1. 23 USDOC, CB, BEA, “International Economic Accounts—U.S. International Trade in Goods and 

Services: December 2008 and January 2009,” February 11, 2009, and March 13, 2009. 24 Ibid. 25 Board of Governors of the Federal Reserve System, Monetary Policy Report, February 2009, 22. 
FIGURE 1.3 Prices of oil and nonfuel commodities, 2004-09

80

100

120

140

160

180

200

220

240

260

2004 2005 2006 2007 2008 2009

0

20

40

60

80

100

120

140

Nonfuel commodities Oil 

Nonfuel commodities (January 2004=100) Dollars per barrel of oil

Source: The International Monetary Fund, International Financial Statistics. 

Note: The data are monthly. The oil price is the spot price of West Texas intermediate crude oil. The price of nonfuel 

commodities is an index of 45 primary-commodity prices. 

actually declined slightly), while imports of nonpetroleum-related products increased by 

only 1.3 percent to $1,646.8 billion.26 As a result, imports of petroleum and petroleum 

products accounted for 21.5 percent of total imports by value in 2008, up from 16.8 

percent in 2007. The deficit in petroleum and petroleum products increased from $293.2 

billion in 2007 to $386.3 billion in 2008 and rose as a share of the total goods deficit, 

from 35.8 percent in 2007 to 47.1 percent in 2008. 27 U.S. trade in goods and services is 

discussed in more detail below. 

U.S. Trade in Goods in 2008 

U.S. merchandise exports increased to $1,169.8 billion (8.2 percent of GDP) in 2008 

from $1,046.4 billion (7.6 percent of GDP) in 2007 (figure 1.4). 28 U.S. merchandise 

imports increased to $2,090.5 billion (14.7 percent of GDP) in 2008 from $1,942.9 billion 

(14.0 percent of GDP) in 2007. Exports increased more rapidly than imports for the third 

year in a row. Exports increased by 15.6 percent between 2005 and 2006, 12.6 percent 

over the 2006-07 period, and 11.8 percent over the 2007-08 period. Imports increased by 

11.0 percent, 5.3 percent, and 7.6 percent, respectively, during the same periods. 

 

26 USDOC, CB, BEA, “International Economic Accounts—Trade in Goods and Services, December 

2008 and January 2009,” February 11, 2009, and March 13, 2009. 27 Ibid. 

1-6 

28 Merchandise trade data in this section do not match the seasonally adjusted BOP basis data presented 

above because of adjustments made to the data as described in footnote 17. 
FIGURE 1.4 U.S. merchandise trade with the world, 2006-08

-1,000

-500

0

500

1,000

1,500

2,000

2,500

2006 2007 2008

Billions of $

Exports Imports Trade balance

Source: U.S. Dep

chandise Trade by Product Category30 

 

artment of Commerce. 

Although U.S. trade in goods increased for the year as a whole, exports and imports each 

declined in the fourth quarter of 2008. This reversal reflected the sharp decline in U.S. 

economic activity in the second half of the year, but particularly in the fourth quarter of 

2008 (figure 1.1). U.S. goods exports increased by 17.9 percent through the third quarter 

of 2008, but decreased by 5 percent in the fourth quarter.29 Similarly, U.S. goods imports 

rose by 13.2 percent through the third quarter of 2008, but declined by 7.8 percent in the 

last quarter of the year. 

U.S. Mer

Exports 

Machinery and transport equipment, which consistently ranks as the largest U.S. export 

by Standard International Trade Classification (SITC) group, accounted for 40.8 percent 

of total U.S. exports in 2008 (appendix table A.1). U.S. exports of machinery and 

transport equipment were valued at $477.1 billion in 2008, up 3.1 percent from $462.7 

billion in 2007. Growth in the exports of mineral fuels, lubricants, and related materials 

contributed the most to the overall increase in exports, accounting for 27.9 percent of 

total export growth. Approximately 80 percent of the total increase in exports in 2008 

was accounted for by increased U.S. exports of goods from the following five SITC 

groups: mineral fuels, lubricants, and related materials; chemicals and related products; 

food and live animals; machinery and transport equipment; and crude materials (except 

fuels). No SITC group registered a decline in exports from 2007 to 2008. 

29 Percent changes calculated with respect to the same period of the previous year. 

1-7 

30 U.S. trade in services is described below. 
1-8 

d from 2007 to 2008, imports decreased 

odestly in the categories of machinery and transport equipment, consistently the largest 

.S. import by SITC group; beverages and tobacco; and miscellaneous manufactured 

valued at $718.3 billion 

nted for 34.3 percent of 

tal U.S. imports in 2008. The 7.6 percent increase in total U.S. imports in 2008 was due 

s (GSP) program (appendix table 

008.

.S. Merchandise Trade with Leading Partners32 

Table 1.1 shows U.S. trade with selected major trading partners, ranked by

orts and imports) in 2008.33 Th ean U U) ained

global market for U.S. exports and largest source ports in 2008. Canada 

remained the largest single-countr -way partner United States, 

followed by China and Mexico. Fig .5 and how leadin . export markets 

and import suppliers, respectively, b in 200

Foreign economic growth in 2008 fell largely as a result of the widespread fina

instability and ensuing economic downturn. 34 Ne eless, U.S. rts increased

11.8 percent and U.S. imports increased by 7.6 p t over the 08 period. 

exports to some major trading partne hina, EU-27, Mexico, and Japan) grew faster 

than imports from these countries, or other major trading rs (Canada

 

Imports 

While U.S. imports of most SITC groups increase

m

U

articles. U.S. imports of machinery and transport equipment were 

in 2008, down 2.8 percent from $739.1 billion in 2007, and accou

to

almost entirely to increases in imports of mineral fuels, lubricants, and other materials, as 

well as chemicals and related products. 

U.S. imports under the four preferential trade programs with developing countries totaled 

$110.0 billion in 2008 and accounted for 5.3 percent of total U.S. imports during the year. 

In 2007, such imports were valued at $90.7 billion. Duty-free imports totaled $31.7 

billion under the Generalized System of Preference

A.11), $56.4 billion (excluding GSP imports) under the African Growth and Opportunity 

Act (AGOA) (appendix table A.13), and $17.2 billion under the Andean Trade 

Preference Act (ATPA) (appendix table A.15). In addition, imports that entered free of 

duty or at reduced rates under the Caribbean Basin Economic Recovery Act (CBERA) 

totaled $4.7 billion (appendix table A.17). U.S. imports under free trade agreement (FTA) 

provisions amounted to $329.8 billion in 2 31

U

 total trade 

(exp e Europ nion (E as a unit rem the largest 

 of U.S. im

y two trading of the

ures 1 1.6 s g U.S

y share 8. 

ncial 

verth expo

2

 by 

ercen 007– U.S. 

rs (C

 but f partne and 

Korea) imports grew faster than exports. 

31 See chap. 2 of this report for further information on the trade preference programs and chap. 4 for 

information on U.S. FTAs. 32 See chap. 5 for further information on U.S. merchandise trade with major trading partners, i.e., EU27, Canada, China, Mexico, and other countries. Venezuela and Saudi Arabia are also leading trading 

countries of the United States but are not discussed because most of these countries’ trade with the United 

States consists of petroleum and petroleum products. 33 Leading U.S. exports to and imports from these partners are presented in appendix tables A.21 

through A.47. 34 Board of Governors of the Federal Reserve System, Monetary Policy Report to the Congress, 

February 2009. 
1-9 

ABLE 1.1 U.S. merchandise trade with major trading partners and the world, 2008 

ajor trading partner Exports Imports Trade balance

Two-wa

T

y

(exports plus

M imports)

Billions of $ 

EU-27 251.2 363.7 -112.5 614.9

Canada 222.4 334.8 -112.4 557.3

China 67.2 337.5 -270.3 404.7

Mexico 131.5 216.3 -84.8 347.8

Japan 61.4 139.1 -77.7 200.5

Korea 33.1 46.7 -13.6 79.8

Taiwan 23.6 36.2 -12.6 59.8

Brazil 29.0 30.1 -1.0 59.1

India 17.3 25.9 -8.5 43.2

All others 333.0 560.2 -227.2 893.2

 World 1,169.8 2,090.5 -920.7 3,260.3

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

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

FIGURE 1.5 Leading U.S. merchandise export markets, by share, 2008

EU-27, 21%

Canada, 19%

Japan, 5% Mexico, 11%

Korea, 3%

Brazil, 2%

Taiwan, 2%

All others, 28%

China, 6%

India, 1%

Total: $1,170 billion

Source: U.S. Department of Commerce. 
FIGURE 1.6 Leading U.S. merchandise import sources, by share, 2008 

EU-27, 17%

China, 16%

Canada, 16%

Japan, 7%

Korea, 2%

Taiwan, 2%

Brazil, 1%

India, 1%

All others, 27%

Mexico, 10%

Total: $2,091 billion

Source: U.S. Department of Commerce. 

China alone accounted for 29.4 percent of the total U.S. merchandise deficit of $920.7 

billion in 2008, and NAFTA partners Canada and Mexico together accounted for 21.4 

percent of the deficit. The U.S. trade deficit with China rose from $262.1 billion in 2007 

to $270.3 billion in 2008, even though U.S. exports to China grew faster (10.1 percent) 

than U.S. imports from China (4.5 percent) over the 2007-08 period. 

U.S. Trade in Services in 200835 

The U.S. surplus in cross-border private services trade increased 18.3 percent in 2008, 

reaching $164.3 billion (figure 1.7). 36 Export growth in most services categories 

combined with significantly slower growth in imports of insurance; telecommunications; 

 

35 This section focuses primarily on cross-border transactions in private services, which exclude 

government sales and purchases of services. Services trade data are drawn from the BEA. In these national 

accounts data, “cross-border transactions” occur when firms resident in one country provide services to 

consumers in another, with people, information, or money crossing U.S. boundaries in the process. Crossborder transactions appear explicitly as imports and exports in the balance of payments. U.S. firms also 

provide services to foreign consumers through affiliates established in host countries, with the income 

generated through “affiliate transactions” appearing as investment income in the balance of payments. The 

channel of delivery used by service providers depends primarily on the nature of the service. For example, 

many financial services, such as retail banking services, are supplied most effectively by affiliates located 

close to the consumer. Conversely, trade in education services predominantly takes the form of cross-border 

transactions, with students traveling abroad to attend foreign universities. 

1-10

36 USDOC, BEA, “U.S. International Transactions,” U.S. International Transactions Accounts Data, 

Table 1 (accessed March 30, 2009). 
FIGURE 1.7 U.S. private cross-border services trade with the world, 2006-08a

0

100

200

300

400

500

600

Billions of $

2006 2007 2008

Exports Imports Trade balance

Source: U.S. Dep rtment of Commerce, Bureau of Economic Analysis website, “Table 1: U.S. International 

Transactions” (accesse

a Data for 200

Exports 

rts, 

l 

s. 

0 

ithin 

 

a

d March 19, 2009). 

8 are preliminary. 

business, professional, and technical services;37 and other services contributed to the fifth 

consecutive annual increase in the U.S. services trade surplus. U.S. cross-border exports 

of private services increased 10.0 percent, from $480.0 billion in 2007 to $528.1 billion 

in 2008. U.S. cross-border imports of services increased 6.6 percent, from $341.1 billion 

to $363.8 billion during the same period. Appendix tables A.2 and A.3 show U.S. trade in 

private services by product category. 

U.S. Services Trade by Product Category 

Business, professional, and technical services led U.S. cross-border services expo

accounting for 22.7 percent of the total in 2008, followed closely by exports of trave

servi 38 ces, which accounted for 20.9 percent of total U.S. cross-border services export

Exports of business, professional, and technical services increased 11.5 percent to $120.

billion in 2008. Management and consulting services constitutes the largest sector w

 

37 Business, professional, and technical services include accounting, auditing, and bookkeeping 

services; advertising; construction, architectural, and engineering services; computer and information 

services; installation, maintenance, and repair of equipment; legal services; management and consulting 

services; medical services; operational leasing; sports and pe

1-11

rforming arts; trade-related services; and other 

misce38 Travel services comprise purchases of goods and services by U.S. persons traveling abroad and by 

foreig

travel, and other items incidental to a foreign visit. 

llaneous services. 

n travelers in the United States. These goods and services include food, lodging, recreation, gifts, 

entertainment, local transportation in the country of 
1-12

tributable to an increase in both the number of foreign visitors to the United 

tates and their expenditures, in part encouraged by the appreciation of foreign currencies 

ainst the U.S. dollar, especially during the first half of the year.40 Exports of passenger 

hed $31.6 billion in 2008, representing an increase of 23.7 percent—the most 

pid growth among all categories of U.S. private services. Similar to exports of travel 

lative to exports 

is due to the decline in outbound U.S. tourism in the second half of the year, likely a 

result of multiple factors including the slowdown in U.S. economic growth. 43 Other 

significant categories of U.S. imports in 2008 were business, professional, and technical 

services, which totaled $75.3 billion, and other transportation services, which totaled 

$71.8 billion. U.S. imports of these categories increased 9.6 percent and 7.1 percent, 

respectively, over 2007. However, overall growth in imports was moderated by sharply 

lower growth and declines across a range of private services, such as financial services,44

demand for which decreased due to the onset of the economic recession. 

 

business, professional, and technical services, and was likely a key contributor to export 

growth in 2008, as international demand for such services continued to increase. 39

Exports of travel services increased 14.2 percent in 2008, reaching $110.5 billion. Such 

growth is at

S

ag

fares41 reac

ra

services, this growth is due to a greater number of foreign visitors attracted by the 

strength of many foreign currencies against the U.S. dollar during the first half of 2008, 

as well as higher airfare prices resulting from higher fuel prices and lower carrier 

capacity.42

Imports 

Travel services ranked as the largest single category of U.S. cross-border services 

imports, increasing by 5.0 percent from $76.2 billion in 2007 to $80.0 billion in 2008, or 

22.0 percent of total services imports. The lower rate of this increase re

39 IBISWorld, “Global Management Consultants,” November 6, 2008, 19; Macris, “Private Practice: 

How the Consulting Business is Faring in Bleak Economic Times,” February 2009, 23; USDOC, BEA, 

“Transactions in Private Services, By Type of Service and Affiliation, 1992–2007,” Supplemental 

Information, October 24, 2008. Management and consulting services accounted for 15 percent of total 

business, professional, and technical services exports in 2007, the most recent year for which data are 

available. Such exports likely continued to increase in 2008 as developing economies in the Middle East and 

Asia experienced continued high demand for such services. 40 USDOC, BEA, Survey of Current Business 89, no.1, 28, and Survey of Current Business 88, no.10, 

23. 41 Fares received by U.S. carriers from foreign residents for travel between the United States and 

foreign countries and between two foreign points 42 USDOC, BEA, “Continued Decline in Tourism Spending in Fourth Quarter 2008,” March 19, 2009; 

USDOC, BEA, Survey of Current Business 89, no.4, 25; and U.S. Government Accountability Office, 

Commercial Aviation, April 2009. 43 USDOC, ITA, OTTI, “Preliminary U.S. Citizen Air Traffic to Overseas Regions, Canada, and 

Mexico 2008,” March 2009. 44 Financial services include non-insurance, non-deposit financial services provided by banks and 

securities firms. 
1-13

U.S. Services Trade with Leading Partners 

The EU was both the United States’ largest export market and largest import supplier in 

2008 (table 1.2), accounting for 37.1 percent of total U.S. services exports and 37.9 

percent of total U.S. services imports (figures 1.8 and 1.9).45 Canada and Japan followed 

the EU as the second and third most significant markets for U.S. services trade in 2008. 

In addition to a large regional services trade surplus with the EU ($58.0 billion), the 

United States maintained large bilateral services trade surpluses with Canada ($22.7 

billion), Japan ($17.3 billion), Mexico ($8.3 billion), and Brazil ($7.4 billion). Small 

deficits were registered with India and Taiwan. The deficit with India is driven by the 

large volume of U.S. imports of other private services. Although 2008 data for sectors 

that make up this category are not yet available, data from previous years suggest that the 

deficit is due to the outsourcing of information technology (IT) services by U.S. firms, 

resulting in higher imports of computer and data processing services.46 The small deficit 

maintained with Taiwan is due to imports of other transportation services, or transactions 

resulting from the transportation of goods by ocean, air, land, pipeline, and inland 

waterways.47

TABLE 1.2 U.S. private services trade with major trading partners and the world, 2008a

Major trading partner Exports Imports Trade balance 

Two-way 

(exports plus 

imports) 

Billions of $ 

EU-27 195.7 137.7 58.0 333.4 

Canada 46.6 23.9 22.7 70.4 

Japan 42.6 25.3 17.3 67.9 

Mexico 24.7 16.4 8.3 41.2 

China 16.1 9.9 6.2 25.9 

India 10.4 12.1 -1.6 22.5 

Korea 14.1 7.1 7.0 21.2 

Brazil 12.5 5.1 7.4 17.6 

Taiwan 7.4 7.7 -0.3 15.1 

All others 158.0 118.7 39.3 276.6 

 World 528.1 363.8 164.3 891.8 

Source: U.S. Department of Commerce, Bureau of Economic Analysis website, “Table 1: U.S. International 

Transactions” (accessed March 19, 2009). 

 a Data are preliminary.

 

45 In terms of single countries, the United Kingdom (a member of the EU) is the United States’ largest 

export market and largest import supplier of private services. 46 USDOC, BEA, Survey of Current Business 88, no. 10, 57; Economist Intelligence Unit, 

“Outsourcing: Tougher Times,” January 7, 2009. 47 USDOC, BEA, table 12, interactive tables, March 18, 2009 (accessed April 27, 2009); USDOC, 

BEA, Survey of Current Business 88, no. 10, 19. 
FIGURE 1.8 Leading U.S. export markets for private services, by share, 2008a

EU-27, 37%

Canada, 9%

Japan, 8%

All others, 30%

China, 3% Mexico, 5%

Korea, 3%

Brazil, 2%

India, 2%

Taiwan, 1%

Total: $528 billion

Source: U.S. Department of Commerce, Bureau of Economic Analysis website, “Table 1: U.S. International 

Transactions” (accessed March 19, 2009). 

a

 Data are preliminary. 

FIGURE 1.9 Leading U.S. import sources of private services, by share, 2008a

EU-27, 38%

All others, 33%

Brazil, 1%

Korea, 2%

Taiwan, 2%

China, 3%

India, 3%

Mexico, 5% Canada, 7%

Japan, 7%

Total: $364 billion

Source: U.S. Department of Commerce, Bureau of Economic Analysis website, “Table 1: U.S. International 

Transactions” (accessed March 19, 2009). 

a

 Data are preliminary. 

1-14
2-1

CHAPTER 2 

Administration of U.S. Trade Laws and 

Regulations 

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

2008. It covers import relief laws; unfair trade laws; and certain other trade provisions, 

including the U.S. Generalized System of Preferences (GSP), the African Growth and 

Opportunity Act (AGOA), the Andean Trade Preference Act (ATPA), and the Caribbean 

Basin Economic Recovery Act (CBERA). 

Import Relief Laws 

Safeguard Actions 

This section covers only safeguard actions under provisions administered by the 

Commission, including global safeguards provided for in sections 201-204 of the Trade 

Act of 1974, China safeguards provided for in section 421 of the Trade Act of 1974, and 

safeguards provided for in various bilateral free trade agreements involving the United 

States. Safeguard actions under provisions administered by other U.S. government 

agencies, such as the China textile safeguard actions by the U.S. Department of 

Commerce (Commerce), are described elsewhere in this report.1

The Commission did not conduct any safeguard investigations during 2008, no safeguard 

measures under provisions administered by the Commission were in effect at any time 

during calendar year 2008, and no safeguard petitions filed under these provisions were 

pending before the Commission at the end of 2008. 

Trade Adjustment Assistance 

The United States provides trade adjustment assistance (TAA) for the purpose of 

assisting U.S. workers, manufacturing firms, and farmers adversely affected by import 

competition or when production shifts to foreign countries.2

 In 2008, TAA comprised the 

following programs: TAA for Workers and Alternative Trade Adjustment Assistance 

(ATAA); the Health Coverage Tax Credit (HCTC) for certain trade-impacted workers 

 1

 The U.S.-China Memorandum of Understanding establishing quotas on U.S. imports of selected 

textile and apparel products from China is covered in the chap. 5 section on China. 2

 TAA was formally established by the Trade Expansion Act of 1962 (Pub. L. 87-794) but was little 

used until the Trade Act of 1974 (Pub. L. 93-618) expanded program benefits and eligibility. The TAA 

program was amended by the Trade Adjustment Assistance Reform Act (TAA Reform Act), which was part 

of the Trade Act of 2002 (Pub. L. 107-210). The TAA Reform Act reauthorized and expanded TAA; it also 

consolidated the TAA and the North American Free Trade Agreement (NAFTA) TAA programs. Economic 

Report of the President, 2009, box 8-2, 232–33; Topoleski, “TAA for Workers,” February 20, 2008. 
2-2

 

and others; TAA for Firms; and TAA for Farmers. 3 These programs are described 

separately below. 

Assistance for Workers 

The TAA for Workers and ATAA programs are administered by the U.S. Department of 

Labor through the Employment and Training Administration (ETA). 4 The TAA for 

Workers program provides training and income support through a variety of benefits and 

services5 for manufacturing sector workers who lose their jobs, or whose hours of work 

and wages are reduced, as a result of increased imports.6 TAA also extends to eligible 

secondary workers—workers whose layoff was caused by the loss of business as a 

supplier of component parts, a final assembler, or a finisher for a firm employing a 

worker group with a current TAA certification.7 Benefits and services also are available 

for workers who lose their jobs, or whose hours of work and wages are reduced, as a 

result of shifts in production to foreign countries that are party to a free trade agreement 

(FTA) with the United States or a country that is named as a beneficiary under the 

AGOA, the ATPA, or the CBERA.8

The ATAA program for workers age 50 and older provides an alternative to the benefits 

offered under the regular TAA program. 9 Participation in ATAA allows workers for 

whom retraining may not be suitable to accept reemployment at a lower wage and receive 

a wage subsidy.10

The HCTC is administered by the Internal Revenue Service (IRS) of the U.S. Department 

of the Treasury. 11 The HCTC helps certain trade-affected workers pay for health 

3

 President Obama signed the Trade and Globalization Adjustment Assistance Act of 2009 on February 

17, 2009, as part of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5). This new 

legislation reauthorized and changed certain provisions of the TAA programs for workers, firms, and farmers 

beginning in 2009. For more information, see USDOL, ETA, “Important Information for Individuals 

Considering Filing a Petition,” March 5, 2009; USDOL, ETA, “Upcoming Changes to Trade Adjustment 

Assistance Questions and Answers,” April 2, 2009; and U.S. Department of Commerce, EDA, “Congress 

Makes Changes to Trade Adjustment Assistance for Firms Program,” undated. 4

 States serve as agents to the U.S. Department of Labor (USDOL) in administering the TAA for 

Workers program. USDOL, ETA, “Fact Sheet,” undated. For additional information, see USDOL, ETA 

website, http://www.doleta.gov/tradeact/. 5

 For TAA certified workers, services and benefits include income support, relocation allowances, job 

search allowances, and the HCTC. TAA participants that require retraining in order to obtain suitable 

employment may receive occupational training. USDOL, ETA, “TAA and ATAA for Workers—Who We 

Serve,” January 13, 2009. 6

 Workers must meet two group eligibility requirements: (1) the workers’ company produces a product, 

and (2) a required minimum of the workforce has been laid off or is threatened with layoffs (3 workers in 

groups of fewer than 50, or 5 percent of the workforce in groups of 50 or more) in the 12 months preceding 

the date a petition for TAA is filed. USDOL, ETA, “TAA and ATAA Application Process,” January 13, 

2009. 7

 USDOL, ETA, “Trade Adjustment Assistance: Application Process,” undated. 8

 USDOL, ETA, “Trade Adjustment Assistance Reform Act of 2002,” January 13, 2009. Countries that 

are party to an FTA with the United States are discussed in chap. 4 of this report. The AGOA, ATPA, and 

CBERA programs are discussed later in this chapter. 9

 ATAA was established by the Trade Adjustment Assistance Reform Act of 2002 (Pub. L. 107-210), 

which was part of the Trade Act of 2002. 10 USDOL, ETA, “TAA and ATAA Services and Benefits,” January 13, 2009. 11 The HCTC was established by the Trade Adjustment Assistance Reform Act of 2002 (Pub. L. 107-

210), which was part of the Trade Act of 2002. For additional information on the HCTC, see U.S. 

Department of the Treasury, Internal Revenue Service (IRS) website, 

http://www.irs.gov/individuals/article/0,,id=187948,00.html. 
2-3

ipient.13

 

insurance premiums. 12 In order to receive the HCTC, eligible individuals must be 

enrolled in a qualified health plan and be a TAA or ATAA rec

To obtain TAA or ATAA services and benefits, a group of workers must first file a 

petition requesting certification as workers adversely affected by foreign trade with the 

U.S. Department of Labor’s Division of Trade Adjustment Assistance (DTAA). If the 

petition is certified by DTAA, each worker in the group may then apply separately for 

individual services and benefits. Workers age 50 and older who are certified as eligible to 

apply for both TAA and ATAA may choose whether to participate in the TAA program 

or the ATAA program, but may not participate in both. 14 The Department of Labor 

instituted investigations for 2,129 petitions for TAA it received during 2008.15 Of that 

number, it issued 1,469 certifications for TAA and denied 464 petitions.16 According to 

the U.S. Department of Labor, approximately 80,000 trade-affected workers receive TAA 

benefits in any given year.17

Assistance for Farmers 

TAA for Farmers is administered by the U.S. Department of Agriculture through the 

Foreign Agricultural Service (FAS).18 The TAA for Farmers program was in effect from 

October 1, 2002, through December 31, 2007, when its statutory authority expired.19 The 

program provided free technical assistance in the development of business adjustment 

plans to producers of raw agricultural commodities, including farmers, ranchers, fish 

farmers, and fishermen, who had been adversely affected by import competition.20

12 The HCTC is disbursed as an annual tax credit when individual recipients file their federal tax 

returns, monthly as premiums become due, or a combination of both. IRS, “HCTC Information for 

Individuals,” January 16, 2009. 13 In 2008, the HCTC paid 65 percent of an eligible individual’s qualified health plan premium. The tax 

credit was increased to 80 percent of qualified premiums beginning in April 2009. This increase was a result 

of changes introduced by the American Recovery and Reinvestment Act of 2009. IRS, “HCTC Latest News, 

Overview and Background,” March 4, 2009. 14 USDOL, ETA, “TAA and ATAA Services and Benefits,” January 13, 2009. 15 Because of the timing of the application process, the adverse trade impact cited in some of the 

petitions occurred in 2007. Also because of the timing of the process, not all of the investigations instituted 

by DTAA in 2008 were completed that year. For additional information, see USDOL, ETA, “Search for 

Trade Adjustment Assistance Cases,” http://www.doleta.gov/tradeact/taa/taa_search_form.cfm (accessed 

April 15, 2009). 16 Workers may file for administrative reconsideration if their petition is denied. Workers who are 

dissatisfied with the result of the administrative reconsideration, or who missed the deadline for 

administrative reconsideration, may seek judicial review of the petition denial. USDOL, ETA, “Trade Act 

Programs: Appeal Rights,” January 13, 2009. 17 USDOL, “2009 Congressional Budget Justification: ETA,” undated, 13. 18 For additional information, see U.S. Department of Agriculture, FAS website, 

http://www.fas.usda.gov/ITP/TAA/taafaqs.asp. 19 The Trade and Globalization Adjustment Assistance Act of 2009 reauthorized and modified the TAA 

for Farmers program. 20 U.S. Department of Agriculture, FAS, “Trade Adjustment Assistance for Farmers Program: 

Frequently Asked Questions,” March 19, 2009. 
2-4

.

23

Assistance for Firms 

TAA for Firms is administered by the U.S. Department of Commerce through the 

Economic Development Administration (EDA).21 The TAA for Firms program provides 

financial assistance in the form of matching funds to help eligible import-impacted 

manufacturers. 22 The matching funds are intended to help firms offset the costs of 

projects aimed at improving a manufacturer's competitive position. Funds may be applied 

toward the cost of consultants, engineers, designers, or industry experts for improvement 

projects in areas such as manufacturing, engineering, marketing, information technology, 

and quality

In FY 2008, the EDA announced that it would allocate $14.1 million in TAA program 

funds, an increase from $12.9 million in FY 2007, to its national network of 11 Trade 

Adjustment Assistance Centers (TAACs). TAACs, typically sponsored by universities or 

nonprofit organizations, are the primary point of contact for firms during the certification 

and adjustment proposal processes under the TAA program.24

Laws Against Unfair Trade Practices 

Section 301 Investigations 

Section 301 of the Trade Act of 1974 is the principal U.S. statute for addressing foreign 

unfair practices affecting U.S. exports of goods or services.25 Section 301 may be used to 

enforce U.S. rights under bilateral and multilateral trade agreements and also may be 

used to respond to unreasonable, unjustifiable, or discriminatory foreign government 

practices that burden or restrict U.S. commerce. Interested persons may petition the 

United States Trade Representative (USTR) to investigate foreign government policies or 

practices, or the USTR may initiate an investigation. 

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

settlement, section 303 of the Trade Act of 1974 requires the USTR to use the dispute 

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

resolved by the conclusion of the investigation, section 304 of the Trade Act of 1974 

requires the USTR to determine whether the practices in question deny U.S. rights under 

a trade agreement; whether they are unjustifiable, unreasonable, or discriminatory; and 

whether they burden or restrict U.S. commerce. If the practices are determined to violate 

a trade agreement or to be unjustifiable, the USTR must take action.26 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 type of action to 

 21 For additional information, see U.S. Department of Commerce, EDA website, 

http://www.taacenters.org/index.html. 22 According to the U.S. Department of Commerce, “[w]e work with a variety of manufacturers and for 

some, imports represent only a minor challenge. For others, they pose a serious threat. Regardless of the 

degree of impact, a firm may be eligible if it experienced sales and employment declines at least partially due 

to imports over the last two years.” U.S. Department of Commerce, EDA, “Trade Adjustment Assistance for 

Firms: Frequently Asked Questions,” undated. 23 TAA pays for half of the cost of these services, up to $150,000 in projects with a maximum TAA 

share of $75,000. Actual levels of assistance depend on a variety of factors. U.S. Department of Commerce, 

EDA, “Trade Adjustment Assistance for Firms: Program Benefits,” undated. 24 U.S. Department of Commerce, EDA, “Announcement of Federal Funding Opportunity,” undated. 25 Section 301 refers to sections 301-310 of the Trade Act of 1974, as amended (19 U.S.C. 2411-2420). 26 Section 301(a) of the Trade Act of 1974, as amended (19 U.S.C. 2411(a)). 
2-5

 

take.27 The time period for making these determinations varies according to the type of 

practices alleged. 

There was one active section 301 case in 2008, which is described below. There were no 

new section 301 petitions filed in 2008. 

Active Section 301 Case in 2008 

The one section 301 case active in 2008 concerned the European Union’s (EU) meat 

hormone directive. Under section 301, the United States had imposed additional 100 

percent ad valorem duties in 1999 on about $117 million in imports from the EU, 

following a successful WTO challenge of an EU law that bans imports of meat from 

animals that have been treated with certain hormones.28 Thereafter, the EU modified its 

hormone directive and initiated the dispute settlement process at the WTO to consider 

whether the EU’s modified hormone regime complied with the EU’s WTO obligations. A 

WTO panel issued a report in March 2008, and the panel report was appealed to the 

Appellate Body, which issued its report in October 2008. The Appellate Body was unable 

to determine whether the EU’s modified hormone regime was WTO-consistent but 

confirmed that the original authorization to impose additional duties was still valid. 

Therefore, the additional duties remained in effect throughout 2008.29 The WTO Dispute 

Settlement Body approved the Appellate Body report in November 2008. As provided 

under sections 306 and 307 of the Trade Act of 1974, USTR initiated a review of the 

actions taken under section 301 in the beef hormone case and solicited public comments 

on the advisability of modifying the list of products that are subject to additional duties.30

At year-end, that process was ongoing, while the United States and the EU continued 

consultations to resolve the dispute.31

Special 301 

The Special 301 law32 requires the USTR each year to identify foreign countries that 

deny adequate and effective protection of intellectual property rights (IPR) or deny fair 

and equitable market access to U.S. persons who rely on IPR protection.33 Under the 

statute, countries are considered to deny adequate and effective IPR protection if they do 

not allow foreign persons “to secure, exercise, and enforce rights related to patents, 

process patents, registered trademarks, copyrights, and mask works.” 34 Countries are 

27 Section 301(b) of the Trade Act of 1974, as amended (19 U.S.C. 2411(b)). 

28 64 Fed. Reg. 40638 (July 27, 1999). 

29 The additional duties are set forth in subheadings 9903.02.21 through 9903.02.47 of the Harmonized 

Tariff Schedule of the United States (2009). 30 73 Fed. Reg. 66066 (November 6, 2008). 

31 The United States and EU signed a Memorandum of Understanding on May 13, 2009. For more 

information on this dispute, see chap. 3 section on WTO dispute settlement and chap. 5 section on the EU. 32 The Special 301 law is set forth in Section 182 of the Trade Act of 1974, as amended (19 U.S.C. 

2242). 33 Persons who rely on IPR protection means persons involved in: “(A) the creation, production or 

licensing of works of authorship ... that are copyrighted, or (B) the manufacture of products that are patented 

or for which there are process patents.” Section 182(d)(1) of the Trade Act of 1974, as amended (19 U.S.C. 

2242(d)(1)). 34 A “mask work” is a “series of related images, however fixed or encoded—(A) having or representing 

the predetermined, three-dimensional pattern of metallic, insulating, or semiconductor material present or 

removed from the layers of a semiconductor chip product; and (B) in which series the relation of the images 

to one another is that each image has the pattern of the surface of one form of the semiconductor chip 

product.” Section 901(a)(2) of the Semiconductor Chip Protection Act (14 U.S.C. 901(a)(2)) and Section 

182(d)(2) of the Trade Act of 1974, as amended (19 U.S.C. 2242(d)(2)). 
2-6

RIPS Agreement).35

 

considered to deny fair and equitable market access if they deny access to a market for a 

product that is protected by a copyright or related right, patent, trademark, mask work, 

trade secret, or plant breeder’s right through the use of laws and practices that violate 

international agreements or that constitute discriminatory nontariff trade barriers. A 

country can be found to deny adequate and effective IPR protection even if it is in 

compliance with its obligations under the WTO Agreement on Trade-Related Aspects of 

Intellectual Property Rights (T

In addition, the Special 301 law directs the USTR to identify so-called priority foreign 

countries. 36 Priority foreign countries are countries that have the most onerous or 

egregious acts, policies, or practices that have the greatest adverse impact (actual or 

potential) on the relevant U.S. products. Such countries must be designated as priority 

foreign countries unless they are entering into good faith negotiations or making 

significant progress in bilateral or international negotiations to provide adequate and 

effective IPR protection. The identification of a country as a priority foreign country 

triggers a section 301 investigation, unless the USTR determines that the investigation 

would be detrimental to U.S. economic interests. 

In addition to identifying priority foreign countries as required by statute, the USTR has 

adopted a practice of naming countries to either the so-called watch list or the priority 

watch list if the countries’ IPR laws and practices do not provide adequate and effective 

IPR protection, but the deficiencies do not warrant identification of the countries as 

priority foreign countries. The priority watch list is for countries with significant IPR 

problems that warrant close monitoring and bilateral consultation. A country that is 

identified on the priority watch list may make progress and thereby be downgraded to the 

watch list or removed from any listing. Alternatively, a country that fails to make 

progress may be elevated from the watch list to the priority watch list or from the priority 

watch list to the list of priority foreign countries. 

In the 2008 Special 301 review, the USTR examined the adequacy and effectiveness of 

IPR protection in 78 countries.37 In conducting the review, the USTR focused on a wide 

range of issues and policy objectives, including the need for significantly improved 

enforcement against counterfeiting and piracy, Internet piracy, counterfeit 

pharmaceuticals, transshipment of pirated and counterfeit goods, ensuring that foreign 

government ministries only use legally authorized and properly licensed business 

software, proper implementation of the TRIPS Agreement by developed and developing 

countries, and full implementation of TRIPS Agreement standards by new WTO 

members at the time of their accession.38

In the 2008 Special 301 review, no countries were identified as priority foreign countries. 

The 2008 Special 301 report identified nine countries on the priority watch list and 

highlighted weak IPR protection and enforcement in China and Russia, both of which 

were maintained on the priority watch list. In addition, Argentina, Chile, India, Israel, 

Thailand, and Venezuela were maintained on the priority watch list due to significant 

concerns regarding IPR protection. Pakistan was elevated to the priority watch list from 

the watch list because Pakistan failed to make progress in enacting legislation to provide 

more effective protection for patented pharmaceuticals. Thirty-six countries were placed 

on the watch list, including Egypt, Lebanon, Turkey, and Ukraine, which were 

downgraded from the priority watch list, and Algeria, Greece, Norway, and Spain, which 

35 Section 182(d)(4) of the Trade Act of 1974, as amended (19 U.S.C. 2242(d)(4)). 36 Section 182(a)(2) of the Trade Act of 1974, as amended (19 U.S.C. 2242(a)(2)). 37 USTR, “2008 Special 301 Report.” 38 Ibid. 
2-7

 

were added to the watch list. Lastly, Belize and Lithuania were removed from the watch 

list due to improved IPR enforcement.39

Antidumping and Countervailing Duty Investigations and Reviews 

Antidumping Investigations 

The U.S. antidumping law is contained in Title VII of the Tariff Act of 1930, as 

amended.40 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.41 The antidumping duty is 

calculated to equal the difference between the U.S. price and the foreign-market value. 

The duty specified in an antidumping order reflects the dumping margin found by 

Commerce during its period of investigation. This rate of duty will be applied to 

subsequent imports from the specified producers/exporters in the subject country, but this 

rate may be adjusted if Commerce receives a request for an annual review. 

Commerce and the Commission each conduct preliminary and final antidumping 

investigations in making their separate determinations.42 The Commission instituted 13 

new antidumping investigations and completed 32 investigations during 2008. 43

Antidumping duties were imposed in 2008 as a result of affirmative Commission 

determinations in 23 of those completed investigations on 13 products from 11 countries 

(table 2.1). 

Details on all antidumping investigations active at the Commission during 2008 are 

presented in appendix table A.4. A list of all antidumping duty orders, including 

39 Ibid. 

40 19 U.S.C. 1673 et seq. 

41 19 U.S.C. 1677b; 19 CFR part 353, subpart D. 

42 Upon the filing of a petition, the Commission has 45 days to determine whether there is a reasonable 

indication that an industry in the United States is materially injured or threatened with material injury, or that 

the establishment of an industry in the United States is materially retarded, by reason of imports of the 

merchandise subject to the investigation. This is known as the preliminary phase of the investigation. If the 

Commission makes an affirmative determination, Commerce continues its investigation and makes 

preliminary and final determinations concerning whether the imported merchandise is being, or is likely to 

be, sold at LTFV. If Commerce reaches a final affirmative dumping determination, the Commission has 45 

days to make its final injury determination. If the Commission’s reasonable indication, or preliminary phase, 

determination is negative, both the Commission and Commerce terminate further investigation. 43 Data reported here and in the following two sections (“Countervailing Duty Investigations” and 

“Reviews of Outstanding Antidumping and Countervailing Duty Orders/Suspension Agreements”) reflect the 

total number of investigations. In other Commission reports these data are grouped by product because the 

same investigative team and all of the parties participate in a single grouped proceeding, and the Commission 

generally produces one report and issues one opinion containing its separate determinations for each 

investigation. 
2-8

 

suspension agreements,44 in effect as of the end of the year is presented in appendix table 

A.5. 

In 2008, the U.S. Supreme Court agreed to consider an appeal involving an antidumping 

determination of the Department of Commerce with respect to low-enriched uranium.45

The Court last agreed to consider an appeal involving a countervailing duty or 

antidumping determination in the late 1970s. On January 26, 2009, the Supreme Court 

issued its decision in the Eurodif case, affirming Commerce’s decision to treat certain 

sales of low-enriched uranium as sales of goods under the antidumping laws. The Court 

stated that, when an agency exercises this authority in the course of adjudication, “its 

interpretation governs in the absence of unambiguous statutory language to the contrary 

or unreasonable resolution of language that is ambiguous.”46

Countervailing Duty Investigations 

The U.S. countervailing duty law is also 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.47 In general, procedures for such 

investigations are similar to those under the antidumping law. Petitions are filed with 

Commerce (the administering authority) and with the Commission. Before a 

countervailing duty order can be issued, Commerce must find a countervailable subsidy 

and the Commission must make an affirmative determination of material injury, threat of 

material injury, or material retardation by reason of the subsidized imports. 

The Commission instituted six new countervailing duty investigations and completed 

seven during 2008. Countervailing duties were imposed in 2008 as a result of affirmative 

Commission determinations in all seven completed investigations on seven products from 

China (table 2.2). 

Details on all countervailing duty investigations active at the Commission during 2008 

are presented in appendix table A.6, and a list of all countervailing duty orders, including 

suspension agreements,48 in effect at the end of the year is presented in appendix table 

A.7. 

44 An antidumping investigation may be suspended if exporters accounting for substantially all of the 

imports of the merchandise under investigation agree either to eliminate the dumping or to cease exports of 

the merchandise to the United States within six months. In extraordinary circumstances, an investigation may 

be suspended if exporters agree to revise prices to eliminate completely the injurious effect of exports of the 

subject merchandise to the United States. A suspended investigation is reinstituted if LTFV sales recur. See 

19 U.S.C. 1673c. 45 United States v. Eurodif S.A., 129 S. Ct. 878 (2009). 46 Ibid., 886. 

47 A subsidy is defined as a “bounty or grant bestowed directly or indirectly by any country, 

dependency, colony, province, or other political subdivision on the manufacture, production, or export of 

products.” See 19 U.S.C. 1677(5) and 1677-1(a). 48 A countervailing duty investigation may be suspended if the government of the subsidizing country 

or exporters accounting for substantially all of the imports of the merchandise under investigation agrees to 

eliminate the subsidy, to completely offset the net subsidy, or to cease exports of the merchandise to the 

United States within six months. In extraordinary circumstances, an investigation may be suspended if the 

government of the subsidizing country or exporters agrees to eliminate completely the injurious effect of 

exports of the subject merchandise to the United States. A suspended investigation is reinstituted if 

subsidization recurs. See 19 U.S.C. 1671c. 
2-9

TABLE 2.1 Antidumping duty orders that became effective during 2008 

Country Product 

Range of duty 

(percent) 

Australia Electrolytic manganese dioxide 83.66 

Brazil Polyethylene terephthalate film, sheet, and strip 28.72 to 44.36 

China Circular welded carbon-quality steel pipe 69.20 to 85.55 

China Electrolytic manganese dioxide 149.92 

China Laminated woven sacks 64.28 to 91.73 

China Light-walled rectangular pipe and tube 249.12 to 264.64 

China Lightweight thermal paper 19.77 to 115.29 

China Off-the-road tires 0.00 to 210.48 

China Polyethylene terephthalate film, sheet, and strip 3.49 to 76.72 

China Raw flexible magnets 105.00 to 185.28 

China Sodium hexametaphosphate 92.02 to 188.05 

China Sodium nitrite 190.74 

China Steel nails 0.00 to 118.04 

China Steel wire garment hangers 15.83 to 187.25 

Germany Lightweight thermal paper 6.50 

Germany Sodium nitrite 150.82 to 237.00 

Korea Light-walled rectangular pipe and tube 0.92 (de minimis) to 30.66

Mexico Light-walled rectangular pipe and tube 2.40 to 11.50 

South Africa Uncovered innerspring units 121.39 

Taiwan Raw flexible magnets 31.20 to 38.03 

Turkey Light-walled rectangular pipe and tube 27.04 to 41.71 

United Arab Emirates Polyethylene terephthalate film, sheet, and strip 4.05 

Vietnam Uncovered innerspring units 116.31 

Source: Compiled by USITC from Federal Register notices. 

TABLE 2.2 Countervailing duty orders that became effective during 2008 

Country Product 

Range of duty 

(percent) 

China Circular welded carbon-quality steel pipe 29.62 to 616.83 

China Laminated woven sacks 29.54 to 352.82 

China Light-walled rectangular pipe and tube 2.17 to 200.58 

China Lightweight thermal paper 0.57 (de minimis) to 138.53 

China Off-the-road tires 2.45 to 14.00 

China Raw flexible magnets 109.95 

China Sodium nitrite 169.01 

Source: Compiled by USITC from Federal Register notices. 

Reviews of Outstanding Antidumping and Countervailing Duty 

Orders/Suspension Agreements 

Section 751 of the Tariff Act of 1930 requires Commerce, if requested, to conduct annual 

reviews of outstanding antidumping and countervailing duty orders to determine the 

amount of any net subsidy or dumping margin and to determine compliance with 

suspension agreements. Section 751 also authorizes Commerce and the Commission, as 

appropriate, to review certain outstanding determinations and agreements after receiving 

information or a petition that shows changed circumstances. In these circumstances, the 

party seeking revocation or modification of an antidumping or countervailing duty order 

or suspension agreement has the burden of persuading Commerce and the Commission 

that circumstances have changed sufficiently to warrant review and revocation. On the 

basis of either of these reviews, Commerce may revoke an antidumping or countervailing 
2-10

 

duty order in whole or in part or terminate or resume a suspended investigation. No 

changed circumstances investigations were active at the Commission during 2008. 

The Uruguay Round Agreements Act amended section 751 of the Tariff Act of 1930 to 

require both Commerce and the Commission to conduct sunset reviews of outstanding 

orders and suspension agreements five years after their publication to determine whether 

revocation of an order or termination of a suspension agreement would be likely to lead 

to continuation or recurrence of dumping or a countervailable subsidy and material 

injury.49 During 2008, Commerce and the Commission instituted 26 sunset reviews of 

existing antidumping and countervailing duty orders and suspension agreements and the 

Commission completed 25 reviews, resulting in 16 antidumping and countervailing duty 

orders and suspension agreements being continued for five additional years.50 Appendix 

table A.8 shows completed reviews of antidumping and countervailing duty orders and 

suspension agreements in 2008.51

Section 337 Investigations 

Section 337 of the Tariff Act of 1930, as amended, 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.52 Section 337 declares unlawful the importation into the 

United States, the sale for importation, or the sale within the United States after 

importation of articles that infringe a valid and enforceable U.S. patent, registered 

trademark, registered copyright, registered mask work, or registered vessel hull design, 

for which a domestic industry exists or is in the process of being established.53

If the Commission determines that a violation exists, it can issue an order to exclude the 

subject imports from entry into the United States and order the violating parties to cease 

and desist from engaging in the unlawful practices.54 The orders enter into force unless 

disapproved for “policy reasons” by the USTR within 60 days of issuance. 

49 19 U.S.C. 1675c. 

50 Three of the 26 sunset reviews were subsequently terminated and the outstanding orders revoked 

because a domestic industry did not request that they be continued. The two revoked antidumping duty orders 

were on ceramic station post insulators from Japan and lawn and garden steel fence posts from China. The 

one revoked countervailing duty order was on DRAMs and DRAM modules from Korea. 51 For detailed information on reviews instituted, as well as Commission action in all reviews, see the 

Commission’s Web site section entitled “Five-Year (Sunset) Reviews,” at 

http://info.usitc.gov/oinv/sunset.NSF. 52 19 U.S.C. 1337. 

53 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 such other unfair acts are 

misappropriation of trade secrets, common law trademark infringement, trade dress infringement, false 

advertising, and false designation of origin. Unfair practices that involve the importation of dumped or 

subsidized merchandise must be pursued under antidumping or countervailing duty provisions, not under 

section 337. 54 Section 337 proceedings at the Commission are conducted before an administrative law judge in 

accordance with the Administrative Procedure Act, 5 U.S.C. 551 et seq. The administrative law judge 

conducts an evidentiary hearing and makes an initial determination, which is transmitted to the Commission. 

The Commission may adopt the determination by deciding not to review it, or it may choose to review it. If 

the Commission finds a violation, it must determine the appropriate remedy, the amount of any bond to be 

collected while its determination is under review by the President, and whether public interest considerations 

preclude the issuance of a remedy. 
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During calendar year 2008, there were 89 active section 337 investigations and ancillary 

proceedings, 47 of which were instituted in 2008. Of these 47, there were 41 new section 

337 investigations and 6 new ancillary proceedings relating to previously concluded 

investigations. Thirty-seven of the new section 337 institutions in 2008 included 

allegations of patent infringement, four involved registered trademarks, one involved 

trade secrets, and one involved trade dress.55 The Commission completed a total of 38 

investigations and ancillary proceedings under section 337 in 2008, including one 

advisory opinion proceeding, one bond forfeiture proceeding, and one remand 

proceeding. Four exclusion orders and two cease and desist orders were issued during 

2008. Nineteen investigations were also terminated by the Commission without 

determining whether section 337 had been violated. Twelve of these investigations were 

terminated on the basis of settlement agreements or consent orders. 

Approximately one-third of the active investigations in 2008 concerned products in the 

semiconductor, telecommunications, computer, and consumer electronics fields. These 

investigations concerned products such as digital televisions, cellular telephones, 

personal computers, global positioning system (GPS) devices, and flash memory 

controllers. There were also a number of investigations involving medical devices such as 

catheters used in cryosurgery and vein harvesting surgical systems. Another group of 

investigations involved chemical products, including sucralose and an automotive 

coolant. Other section 337 investigations active during the year focused on a variety of 

consumer items, including ground fault circuit interrupters, noise cancelling headphones, 

and self-cleaning litter boxes. 

At the close of 2008, 52 section 337 investigations and related proceedings were pending 

at the Commission. Commission activities involving section 337 actions in 2008 are 

presented in appendix table A.9. As of December 31, 2008, exclusion orders based on 

violations of section 337 were in effect for 67 investigations. Appendix table A.10 lists 

the investigations in which these exclusion orders were issued. 

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. Authorization for the GSP program was 

extended in October 2008 and is currently set to expire on December 31, 2009.56 

The program is authorized by Title V of the Trade Act of 1974, as amended. 57 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 

 55 Two of the investigations involved more than one type of intellectual property right. 56 Pub. L. 110-436. 

57 19 U.S.C. 2461 et seq. 
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by lowering costs of imports for U.S. business and lowering prices for American 

consumers. Certain additional products are allowed duty-free treatment when imported 

only from countries designated as least-developed beneficiary developing countries 

(LDBDC). 

Countries are designated as “beneficiary developing countries” under the GSP program 

by the President, although countries can be removed from designation based on petitions 

alleging improper country practices, including inadequate protection of intellectual 

property rights or internationally recognized worker rights. 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. The statute also 

provides for graduation of countries from the program when they become “high-income” 

countries and for removal of eligibility of articles, or articles from certain countries, 

under certain conditions. The extension of the GSP program in 2006 provided that a 

competitive need limitation (CNL) waiver in effect with respect to a product for five or 

more years should be revoked if U.S. imports from that supplier meet certain “supercompetitive” value thresholds.58 The following developments with respect to the U.S. 

GSP program occurred in 2008: 

• On April 17, 2008, Solomon Islands was designated a least-developed GSP 

 beneficiary (Solomon Islands was already a GSP beneficiary).59

• On June 30, 2008, a number of changes were announced based on the 2007 

 Annual Review of GSP. The Republic of Serbia and the Republic of 

 Montenegro were separately granted GSP beneficiary status (replacing 

 beneficiary status for Serbia and Montenegro as one country). The graduation 

 of Trinidad and Tobago from the GSP program, to be effective January 1, 

 2010, for reaching high income, was announced. In addition, a number of 

 products were excluded for exceeding CNLs; other products were granted 

 CNL waivers; still others, which had previously received CNL waivers, had 

 those waivers revoked as “super-competitive.”60

• On December 19, 2008, Kosovo and Azerbaijan were designated GSP 

 beneficiaries.61

Duty-free imports entered under the GSP program totaled $31.7 billion in 2008, 

accounting for 8.6 percent of total U.S. imports from GSP beneficiary countries and 1.5 

percent of total imports (table 2.3). Angola was the leading GSP beneficiary in 2008, 

followed by India, Thailand, Equatorial Guinea, Brazil, and Indonesia. More than onethird of the total value of all duty-free entries under the GSP were petroleum products 

(which only enter free of duty under the GSP when imported from LDBDCs, including 

Angola and Equatorial Guinea). Appendix table A.11 shows the top 20 products imported 

under the GSP in 2008, and appendix table A.12 shows the overall sectoral distribution of 

GSP benefits. 

58 19 U.S.C. 2463(d)(4)(B)(ii). 59 Proclamation No. 8240, 73 Fed. Reg. 21515 (April 21, 2008). 

60 Proclamation No. 8272, 73 Fed. Reg. 38297 (July 3, 2008). 61 Proclamation No. 8330, 73 Fed. Reg. 78913 (December 23, 2008).
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TABLE 2.3 U.S. imports for consumption from GSP beneficiaries and the world, 2008 

Item 

All GSP

beneficiaries World

(Millions of $) 

Total U.S. imports 369,697 2,073,837

 Non-GSP eligible imports 310,355 1,103,350

 GSP eligible productsa 59,342 970,487

 GSP Non-LDBDC eligibleb 35,317 386,499

 GSP LDBDC eligiblec 24,025 583,988

Total GSP duty-free imports 31,652 31,652

 Non-LDBDC GSP duty free 20,636 20,636

 GSP LDBDC duty free 11,017 11,017

Total of GSP eligible products not benefitting from GSP duty-free treatment d 27,690 938,835

 GSP program exclusions 9,312 9,312

 All other 18,377 929,522

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

 Note: Customs-value basis; excludes imports from the U.S. Virgin Islands 

a

 Includes imports from all beneficiary countries for the articles that are designated as eligible articles under 

GSP. b

 Non-LDBDC (least-developed beneficiary developing countries) 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). c

 LDBDC eligible products are those for which a rate of duty “Free” appears in the Special rate column of the 

HTS followed by the symbol “A+” in parentheses (the symbol “A+” indicates that all LDBDCs (and only LDBDC’s) are 

eligible for duty-free treatment with respect to all articles provided for in the designated provisions). d

 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 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. 

African Growth and Opportunity Act 

In 2008, articles entering the United States free of duty under the African Growth and 

Opportunity Act (AGOA) were valued at $56.4 billion; petroleum products accounted for 

more than 93 percent of such imports, down from about 95 percent in 2007. AGOA was 

enacted in 2000 to provide unilateral preferential trade benefits to eligible sub-Saharan 

African (SSA) countries pursuing political and economic reform.62 AGOA provides dutyfree market access to all GSP eligible products and more than 1,800 additional qualifying 

 62 In addition to providing preferential access to the U.S. market for eligible SSA products, AGOA also 

includes a number of trade-facilitating provisions. For further information, see USTR, “2008 Comprehensive 

Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the African 

Growth and Opportunity Act,” 21. 
2-14

tariff line-item products from designated SSA countries, and exempts these beneficiaries 

from GSP CNLs. AGOA also provides duty-free treatment for certain apparel articles 

made in qualifying SSA countries. AGOA is scheduled to be in effect until 2015.63 Total 

U.S. imports from AGOA countries were valued at $81.4 billion in 2008, an increase of 

26.2 percent over 2007 (table 2.4). This increase in total imports was driven primarily by 

increased imports of petroleum products, which increased by approximately 30 percent, 

and represented more than 83 percent of total imports from AGOA countries.64 Duty-free 

U.S. imports under AGOA, including under the GSP program, were valued at $66.3 

billion in 2008, accounting for 81 percent of total imports and representing an increase of 

29.8 percent over 2007. U.S. imports under AGOA, exclusive of the GSP program, were 

valued at $56.4 billion in 2008, a 33.4 percent increase over 2007, and accounted for 69.2 

percent of all imports from AGOA countries. 

The leading suppliers of duty-free U.S. imports under AGOA in 2008 were Nigeria (62.7 

percent of total AGOA imports), Angola (17.4 percent), Republic of the Congo (4.7 

percent), South Africa (4.3 percent), Chad (4.1 percent), and Gabon (3.8 percent). These 

six countries accounted for 97.0 percent of total imports by value under AGOA, a slight 

increase over 2007 (appendix table A.13). Of the leading imports under AGOA, 

petroleum-related products increased to $52.8 billion in 2008, up 31.5 percent by value 

from 2007, and accounted for 93.7 percent of the total value of AGOA imports in 2008, a 

slight decrease over 2007 (appendix table A.14). 65 Imports of apparel in 2008 were 

TABLE 2.4 U.S. imports for consumption from AGOA countries, 2006-08 

Item 2006 2007 2008

Total imports from AGOA countries (millions of $) 56,010 64,532 81,438

 Total under AGOA, including GSP (millions of $)

a 44,239 51,051 66,259

 Imports under AGOA, excluding GSP (millions of $) 36,133 42,270 56,374

Total under AGOA as a percent of total 64.5 65.5 69.2

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

 a AGOA eligible products are those for which a rate of duty “Free” appears in the Special rate column of the HTS 

followed by the symbol “D” in parentheses (the symbol “D” indicates that all AGOA beneficiaries are eligible for dutyfree treatment with respect to all articles provided for in the designated provisions). In addition, provisions of 

subchapters II and XIX of chapter 98 of the HTS set forth specific categories of AGOA-eligible products, under the 

terms of separate country designations enumerated in subchapter notes.

 63 AGOA was originally scheduled to be in effect through September 30, 2008. Section 3108 of the 

Trade Act of 2002 enhanced the original 2000 AGOA provisions and expanded preferential access for 

apparel imports from SSA beneficiaries (these modifications collectively are referred to as AGOA II). The 

AGOA Acceleration Act of 2004 (AGOA III) enhanced many of the original AGOA trade benefits and 

generally extended AGOA provisions until 2015. The Africa Investment Incentive Act of 2006 (AGOA IV) 

extended the textile and apparel provisions from September 2008 to September 2015, extended the provision 

allowing for the use of third-party fabric in qualifying duty-free apparel imports from September 2007 to 

September 2012, and expanded duty-free treatment for textiles and textile products originating entirely in one 

or more lesser-developed beneficiary countries (LDBCs). AGOA IV also increased the cap for apparel made 

from third-party fabric to 3.5 percent of U.S. apparel imported into the United States in the preceding 12-

month period beginning October 1, 2006. In this report, the term AGOA refers to the original AGOA, AGOA 

II, AGOA III, and AGOA IV, as a group. For additional information, see USTR, “2008 Comprehensive 

Report.” 64 Although petroleum products only enter duty free under GSP for LDBDCs, the duty-free preference 

for petroleum products extends to all AGOA beneficiaries. 65 The increase in imports of petroleum and related products reflects increasing prices. Import 

quantities from the five leading AGOA petroleum suppliers (Nigeria, Angola, Republic of the Congo, Chad, 

and Gabon) actually decreased from 675.1 million barrels in 2007 to 634.2 million barrels in 2008 

(approximately -6.1 percent). U.S. Department of Energy, EIA, Official Energy Statistics Database, “U.S. 

Imports by Country of Origin,” (accessed April 3, 2009).
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approximately $1.1 billion, and accounted for 2.0 percent of total AGOA imports by 

value, compared to approximately $1.3 billion, or 3.0 percent, in 2007. 

Each year, the President must consider whether SSA countries66 are, or remain, eligible 

for AGOA benefits based on specific criteria.67 At the end of 2008, a total of 41 SSA 

countries were designated as eligible for AGOA benefits,68 and 27 SSA countries were 

eligible for AGOA textile and apparel benefits. 69 During 2008, Comoros and Togo 

became eligible for AGOA benefits, and The Gambia became eligible for apparel 

benefits. 

On October 16, 2008, President Bush signed legislation redesignating Mauritius as 

eligible for benefits under AGOA’s third-country fabric provision.70 The legislation also 

repealed amendments to AGOA that required Commission determinations with respect to 

the availability and use of regional SSA fabric, and related amendments (also known as 

the “abundant supply provision”). 71 The legislation also required the Commission to 

conduct a one-time review to identify yarns, fabrics, and other textile and apparel inputs 

that can be produced competitively in beneficiary sub-Saharan African countries through 

new or increased investment or other measures. The Commission delivered its report, 

Sub-Saharan African Textile and Apparel Inputs: Potential for Competitive Production, 

to the House of Representatives’ Committee on Ways and Means, the Senate Committee 

on Finance, and the General Accounting Office on May 15, 2009.72 

Section 105 of AGOA requires the President to establish the U.S.-SSA Trade and 

Economic Cooperation Forum. AGOA also requires the USTR and the Secretaries of 

State, Commerce, and the Treasury to host meetings with senior-level officials from 

governments of countries that are eligible for AGOA benefits to discuss their trade, 

investment, and development relationships. The seventh AGOA Forum was held in 

Washington, DC, July 14-16, 2008. The theme of the forum was “Mobilizing Private 

Investment for Trade and Growth.” The forum’s focus was on “creating a business 

66 19 U.S.C. 3706 lists a total of 48 countries, or their successor political entities, as potential 

beneficiaries. 67 19 U.S.C. 3703(a). See also USTR, “2008 Comprehensive Report,” 21-22. 

68 The following 39 countries are listed in general note 16 of the 2008 HTS as designated AGOA 

eligible beneficiaries: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Chad, 

Democratic Republic of the Congo, Djibouti, Ethiopia, Gabon, The Gambia, Ghana, Guinea, Guinea-Bissau, 

Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, 

Nigeria, Republic of the Congo, Rwanda, São Tomé and Príncipe, Senegal, Seychelles, Sierra Leone, South 

Africa, Swaziland, Tanzania, Uganda, and Zambia. USITC, “HTS 2008 (Rev. 2),” April 1, 2008, 166. During 

2008, Comoros and Togo were also designated as AGOA eligible beneficiaries. USITC, “HTS 2008 

(Supplement-1),” July 1, 2008, 166. Effective January 1, 2009, Mauritania’s designation as an AGOA 

beneficiary country was terminated. White House, “To Take Certain Actions Under the African Growth and 

Opportunity Act and the Generalized System of Preferences,” December 19, 2008. 69 The following 26 countries are listed in U.S. Note 7 of the HTS as eligible to receive AGOA apparel 

benefits during 2008: Benin, Botswana, Burkina Faso, Cameroon, Cape Verde, Chad, Ethiopia, Ghana, 

Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, 

Senegal, Sierra Leone, South Africa, Swaziland, Tanzania, Uganda, and Zambia. USITC, “HTS 2008 (Rev. 

2),” April 1, 2008, sect. xxii, 98-II-3. During 2008, The Gambia was also designated to receive AGOA 

apparel benefits. USITC, “HTS 2008 (Supplement-1),” July 1, 2008, sect. xxii, 98-II-3. 70 Section 3 of the Andean Trade Preference Extension Act (Pub. L. 110-436). On December 3, 2004, 

the President signed into law the Miscellaneous Trade and Technical Corrections Act of 2004, which 

amended AGOA III to grant LDBDC status to Mauritius allowing producers there to use third-country fabric 

in qualifying apparel. The designation was only effective for a 1-year period beginning October 1, 2004. 71 Section 3 of the Andean Trade Preference Extension Act (Pub. L. 110-436). For information about 

these provisions, see USITC, The Year in Trade 2007, 2008, 2-15–2-16. 72 USITC, Sub-Saharan African Textile and Apparel Inputs, 2009. 
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climate that will encourage private investment and help mobilize capital to finance 

investment.”73

Andean Trade Preference Act 

In 2008, articles from Bolivia, Colombia, Ecuador, and Peru entering the United States 

free of duty under the Andean Trade Preference Act (ATPA) increased 40.1 percent to 

$17.2 billion, driven primarily by increased imports of petroleum and petroleum products 

(table 2.5). ATPA was enacted in 1991 to promote broad-based economic development 

and viable economic alternatives to coca cultivation and cocaine production by offering 

Andean products broader access to the U.S. market.74 ATPA expired on December 4, 

2001, but was renewed and expanded by the Andean Trade Promotion and Drug 

Eradication Act (ATPDEA), part of the Trade Act of 2002.75 ATPA, as amended by 

ATPDEA, has expired several times. 76 On October 16, 2008, ATPA was extended 

through December 31, 2009, for Colombia and Peru and through June 30, 2009, for 

Bolivia and Ecuador with provisions for reviews of their eligibility under ATPA 

requirements. Benefits for Ecuador will continue unless the President determines that 

Ecuador does not satisfy the eligibility requirements set forth in the ATPA. ATPA 

benefits will continue for Bolivia only if the President determines that Bolivia has 

TABLE 2.5 U.S. imports for consumption from ATPA countries, 2006-08 

Item 2006 2007 2008

Total imports from ATPA countries (millions of $) 22,511 20,923 28,483

 Total under ATPA (millions of $) 13,484 12,307 17,243

 Imports under ATPDEA (millions of $)

a 10,559 9,497 14,570

 Imports under ATPA, excluding ATPDEA (millions of $)

b 2,925 2,810 2,672

Total under ATPA as a percent of total 59.9 58.8 60.5

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

 a

 ATPDEA eligible products are those for which a rate of duty “Free” appears in the Special rate column of the HTS 

followed by the symbol “J+” in parentheses (the symbol “J+” indicates that all ATPDEA beneficiary countries are 

eligible for duty-free treatment with respect to all articles provided for in the designated provisions). 

 b

 ATPA (excluding ATPDEA) eligible products are those for which a special duty rate appears in the Special rate 

column of the HTS followed by the symbols “J” or “J*” in parentheses (the symbol “J” indicates that all beneficiary 

countries are eligible for special duty rate treatment with respect to all articles provided for in the designated 

provisions and the symbol “J*” indicates that certain articles, specified in general note 11(d) of the HTS, are not 

eligible for special duty rate treatment with respect to any article provided for in the designated provision). In addition, 

subchapter XXI of chapter 98 sets forth provisions covering specific products given duty-free eligibility under the 

ATPDEA, under the terms of separate country designations enumerated in that subchapter. 

 73 “Seventh AGOA Forum,” www.agoa.gov (accessed March 12, 2009). For more information, see 

USDOC, ITA, African Growth and Opportunity Act web site, 

http://www.agoa.gov/agoa_forum/agoa_forum7.html. 74 For a more detailed description of ATPA, including country and product eligibility, see USITC,

Impact of the Andean Trade Preference Act, 2008. 75 Pub. L. 107-210, Title XXXI. The four ATPA beneficiaries are not automatically eligible for 

ATPDEA preferences. ATPDEA authorizes the President to designate any ATPA beneficiary as eligible for 

ATPDEA benefits provided the President determines the country has satisfied certain requirements, including 

protection of IPR and internationally recognized workers’ rights. The President designated all four ATPA 

beneficiaries as ATPDEA beneficiaries on October 31, 2002. President, Proclamation, “To Implement the 

Andean Trade Promotion and Drug Eradication Act, Proclamation 7616.” 67 Fed. Reg. 67283B67291 

(October 31, 2002). 76 Pub. L. 109-432, sect. 7001 et seq.; Pub. L. 110B42; and Pub. L. 110B191. 
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satisfied ATPA eligibility requirements.77 Effective December 15, 2008, President Bush 

suspended Bolivia from eligibility for failing to meet ATPA’s counternarcotics 

cooperation criteria.78

A wide range of products is eligible for duty-free entry under ATPA. ATPDEA amended 

ATPA to provide duty-free treatment for certain products previously excluded from 

ATPA, including certain textiles and apparel, footwear, petroleum and petroleum 

derivatives, watches and watch parts assembled from parts originating in countries not 

eligible for normal trade relations (NTR) rates of duty, and certain tuna packaged in foil 

or other flexible airtight packages (not cans). In addition, certain products previously 

eligible for reduced-duty treatment became eligible for duty-free entry under ATPA, 

including certain handbags, luggage, flat goods (such as wallets, change purses, and 

eyeglass cases), work gloves, and leather wearing apparel. Products that continue to be 

excluded from ATPA preferential treatment include textile and apparel articles not 

otherwise eligible for preferential treatment under ATPDEA and certain agricultural 

products. Thus, canned tuna, rum and tafia, and above-quota imports of certain 

agricultural products subject to tariff rate quotas (primarily sugar, beef, and dairy 

products) continue to be excluded from the program. 

Total (dutiable and duty-free) U.S. imports from Bolivia,79 Colombia, Ecuador, and Peru 

were valued at $28.5 billion in 2008, an increase of 36.1 percent from $20.9 billion in 

2007 (table 2.5). U.S. imports entered under ATPA preferences in 2008 were valued at 

$17.2 billion and accounted for 60.5 percent of all imports from ATPA countries. U.S. 

imports under ATPDEA were valued at $14.6 billion and accounted for 84.5 percent of 

imports under ATPA in 2008. U.S. imports under the original ATPA (ATPA excluding 

ATPDEA) accounted for the remaining 15.5 percent, valued at $2.7 billion. 

In 2008, U.S. imports under ATPA increased from all of the beneficiary countries except 

Bolivia (appendix table A.15). Colombia returned to being the largest source of U.S. 

imports under ATPA in 2008 after trailing Ecuador in 2006 and 2007. Imports from 

Colombia increased 62.1 percent in value during 2008 mainly because of higher 

petroleum shipments and prices. Ecuador fell to the second-leading supplier of ATPA 

imports in 2008. Petroleum products accounted for 77 percent of U.S. imports under 

ATPA in 2008 and represented 6 of the top 25 U.S. imports under the program (appendix 

table A.16). Apparel was the next-largest category of imports under ATPA, accounting 

for 6 percent of such imports and 5 of the 25 leading imports under ATPA. Other leading 

imports under ATPA in 2008 included copper cathodes, fresh cut flowers, asparagus, and 

pouched tuna. 

Caribbean Basin Economic Recovery Act 

The Caribbean Basin Economic Recovery Act (CBERA) was enacted in 1983 as part of 

the Caribbean Basin Initiative (CBI) to encourage economic growth and development in 

the Caribbean Basin countries by promoting increased production and exports of 

nontraditional products through duty preferences.The Caribbean Basin Trade Partnership 

Act (CBTPA) amended CBERA in 2000 and expanded the list of qualifying articles, for 

77 Pub. L. 110B436. On June 30, 2009, the President did not revoke Ecuador’s eligibility for ATPA 

benefits and did not reinstate ATPA eligibility for Bolivia. 78 Proclamation No. 8323, 73 Fed. Reg. 72677 (November 25, 2008). 

79 Includes data for Bolivia after it lost beneficiary status on December 15, 2008. 
2-18

eligible countries, to include certain apparel. 80 The CBTPA also extended NAFTAequivalent treatment (that is, rates of duty equivalent to those accorded to goods under 

the same rules of origin applicable under NAFTA) to a number of other products 

previously excluded from CBERA, including certain tuna, petroleum and petroleum 

derivatives, certain footwear, watches and watch parts assembled from parts originating 

in countries not eligible for normal trade relations (NTR) rates of duty, and certain 

handbags, luggage, flat goods, work gloves, and leather wearing apparel. Products that 

continue to be excluded from CBERA preferential treatment include textile and apparel 

products not otherwise eligible for preferential treatment under the CBTPA and abovequota imports of certain agricultural products subject to tariff-rate quotas (primarily 

sugar, beef, and dairy products). CBTPA provisions were scheduled to expire on 

September 30, 2008, but were extended through September 30, 201081—other parts of 

CBERA have no expiration date. In the discussions that follow, the term CBERA refers 

to CBERA as amended by the CBTPA. 

TABLE 2.6 U.S. imports for consumption from CBERA countries, 2006-08 

Item 2006a 2007a 2008

Total imports from CBERA countries (millions of $) 25,755 19,058 19,486

 Total under CBERA, including CBTPA (millions of $) 9,915 5,496 4,726

 Imports under CBTPA (millions of $)

b 5,961 2,662 1,702

 Imports under CBERA, excluding CBTPA (millions of $)

c 3,955 2,834 3,024

Total under CBERA as a percent of total 38.5 28.8 24.3

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

 a

 Data for 2006 and 2007 include U.S. imports from El Salvador, Guatemala, Honduras, Nicaragua, and the 

Dominican Republic only for the period during which those countries were eligible for CBERA benefits before 

CAFTA-DR entered into force. 

 b

 CBTPA eligible products are those for which a special duty rate appears in the Special rate column of the HTS 

followed by the symbol “R” in parentheses (the symbol “R” indicates that all CBTPA beneficiary countries are 

eligible for special duty rate treatment with respect to all articles provided for in the designated provisions). In 

addition, subchapters II and XX of chapter 98 set forth provisions covering specific products eligible for duty-free 

entry, under separate country designations enumerated in these subchapters (and including the former CBTPA 

beneficiaries enumerated in footnote a above). 

 c

 CBERA (excluding CBTPA) eligible products are those for which a special duty rate appears in the Special 

rate column of the HTS followed by the symbols “E” or “E*” in parentheses (the symbol “E” indicates that all 

beneficiary countries are eligible for special duty rate treatment with respect to all articles provided for in the 

designated provisions and the symbol “E*” indicates that certain beneficiary countries or articles, specified in 

general note 7(d) of the HTS, are not eligible for special duty rate treatment with respect to any article provided for 

in the designated provision). 

 80 Textiles and apparel not subject to textile agreements in 1983 (textiles and apparel of silk or 

noncotton vegetable fibers—mainly linen and ramie) are eligible for duty-free entry under original CBERA 

provisions, which do not have an expiration date. 81 Pub. L. 110-234, sect. 15408. 
2-19

 

In 2008, 19 countries and territories were designated eligible for permanent CBERA 

preferences 82 and 9 were designated eligible for CBTPA preferences. 83 U.S. imports 

under CBERA decreased by 14.0 percent to $4.7 billion in 2008 (table 2.6).84 The decline 

in U.S. imports under CBERA provisions in 2008 reflects the fact that the Dominican 

Republic was a beneficiary for only the first two months of 2007, and its imports since 

then have entered under U.S.-CAFTA-DR. 85 Over the past three years, U.S. imports 

under CBERA have declined in value and have accounted for a declining share of all 

U.S. imports from CBERA countries—38.5 percent in 2006, 28.8 percent in 2007, and 

24.3 percent in 2008, mainly because the countries that left CBERA to become members 

of U.S.-CAFTA-DR over that period were major exporters of apparel under CBTPA 

provisions, whereas the remaining countries, except for Haiti, export very little apparel. 

Appendix table A.17 shows U.S. imports entered under CBERA provisions from each of 

the CBERA countries from 2006 to 2008.86 Trinidad and Tobago continued as the leading 

supplier of U.S. imports under CBERA in 2008. Appendix table A.18 shows the 25 

leading U.S. imports entered under CBERA provisions from 2006 to 2008. Methanol, 

mineral fuels, fuel-grade ethanol, and apparel products dominated the list of duty-free 

imports in 2008. Three of the leading products were mineral fuels; 6 were knitted and 

nonknitted apparel; and the remaining 16 were products that had already qualified for 

benefits under the original CBERA before the implementation of the CBTPA. 

HOPE Act 

U.S. imports of apparel from Haiti decreased 8.8 percent to $412.4 million in 2008. 

Imports of apparel in 2008 under provisions of the Haitian Hemispheric Opportunity 

through Partnership Encouragement Act of 2006 (HOPE Act) 87 as amended by the 

Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 

(HOPE II Act)88 rose to $75.0 million from $13.6 million in 2007. 

The HOPE Act, which was signed into law on December 20, 2006, amended CBERA to 

provide expanded rules of origin for inputs to apparel and wire harness automotive 

components assembled in Haiti and imported into the United States.89

The HOPE Act provided expanded trade benefits beyond what the country receives under 

the CBTPA for up to five years, extending duty-free treatment to U.S. imports of knit and 

82 Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Costa Rica, Dominica, Grenada, 

Guyana, Haiti, Jamaica, Montserrat, Netherlands Antilles, Panama, St. Kitts and Nevis, St. Lucia, St. Vincent 

and the Grenadines, Trinidad and Tobago, and the British Virgin Islands. 83 Barbados, Belize, Costa Rica, Guyana, Haiti, Jamaica, Panama, St. Lucia, and Trinidad and Tobago. 

84 Table 2.6, and appendix tables A.17 and A.18 include data of four CAFTA-DR countries that were 

eligible for CBERA benefits during a portion of 2006 and data for the Dominican Republic, which was a 

CBERA beneficiary during part of 2007. When the U.S.-CAFTA-DR enters into force for a country, such 

country is removed from the enumeration of designated beneficiary countries under CBERA, CBTPA, and 

the GSP. U.S.-CAFTA-DR entered into force in 2006 for El Salvador, Guatemala, Honduras, and Nicaragua, 

in 2007 for the Dominican Republic, and in 2009 for Costa Rica. U.S. FTAs are discussed in more detail in 

chap. 4 of this report. 85 For a description of the current level of economic development and some of the possible future trade 

and development strategies for CBERA beneficiary countries, see USITC, Caribbean Growth and 

Development, 2008. 86 See footnote 80. 

87 Pub. L. 109-432, sect. 5001 et seq., the Haitian Hemispheric Opportunity through Partnership 

Encouragement Act of 2006 (HOPE Act). 88 Pub. L. 110-234, sect. 15401, et seq., the Haitian Hemispheric Opportunity through Partnership 

Encouragement Act of 2008 (HOPE II Act). 89 There were no imports of wire harness automotive components from Haiti in 2007 or 2008. 
2-20

 

woven apparel assembled in Haiti from U.S., Haitian, or third-country inputs, subject to 

import caps, eligibility requirements, and in most cases, value-added content 

requirements. The Act provided for more flexible alternative sourcing of inputs (such as 

yarn and fabric) than the CBTPA and has the potential to improve the competitiveness of 

Haitian manufacturers by allowing the use of lower cost raw materials, a primary cost 

component in the production of apparel.90

The HOPE II Act extended all tariff preferences through September 30, 2018. It allowed 

direct shipment of goods assembled in Haiti from either Haiti or the Dominican Republic 

and further expanded opportunities for duty-free imports of apparel, textile luggage, and 

textile headgear assembled in Haiti. 

90 For more details on the special rules for apparel imported directly from Haiti under the HOPE Act, 

see USITC, Special Rules for Haiti, 2008. 
3-1

CHAPTER 3 

Selected Trade Developments in the WTO, 

OECD, and APEC 

In 2008, multilateral trade negotiations under the Doha Development Agenda (the Doha 

Round) resumed in February under the guidance of the World Trade Organization 

(WTO), but reached an impasse at mid-year. In addition, the WTO carried out its regular 

work, in particular welcoming Ukraine and Cape Verde as new WTO members in 2008 

and finalizing details concerning the Enhanced Integrated Framework, a multilateral 

facility to help integrate least developed countries into the multilateral world trading 

system. This chapter also highlights developments in the Organization for Economic 

Cooperation and Development (OECD) that helped support activities in the world trading 

system, as well as similar developments in the Asia-Pacific Economic Cooperation forum 

(APEC). 

World Trade Organization 

Multilateral trade negotiations in the Doha Development Agenda (DDA) resumed in 

February 2008 in the two core areas of agriculture and nonmarket access negotiations. 

Nonetheless, negotiators were unable to sufficiently narrow their differences in the first 

half of the year, in particular over a selective safeguard mechanism for trade in 

agricultural products. At the end of July 2008, these talks reached an impasse that 

remained at year-end. 

Doha Trade Negotiations 

In his capacity as chairman of the Trade Negotiations Committee (TNC) overseeing the 

Doha Round, WTO Director-General Pascal Lamy reported in January 2008 on the state 

of play in the round. He cited positive political expressions of support for concluding the 

round by the end of 2008, as well as progress on technical matters that could provide a 

basis for reaching a consensus on “negotiating modalities” in both the agricultural and 

industrial products negotiations.1 In February 2008, revised negotiating texts in both the 

Agriculture Negotiating Group and the Non-Agricultural Market Access (NAMA) Group 

were issued by their respective chairs, the first major revision since these texts were 

initially tabled in July 2007.2

In May 2008, the Director-General further reported that discussions conducted in the 

TNC since February had focused principally on finalizing these negotiating modalities in 

 1 WTO, General Council, “Annual Report (2008),” 2-3; WTO, “Informal TNC Meeting at the Level of 

Head of Delegation—Chairman's Remarks,” January 31, 2008, JOB(08)/2, 1. 2

 WTO, “Director-General—Lamy welcomes revised agriculture and NAMA negotiating texts,” 

February 8, 2008, Press release 513. 
3-2

 

the two groups.3 A second revision of the negotiating texts under consideration in these 

groups was released in May 2008, including a draft assessment by the chairmen of what 

could be agreed upon regarding possible formulas for cutting tariffs and subsidies.4 The 

two papers were circulated at roughly the same time because members link the two 

subjects, in part because in both groups members are seeking a balance between the depth 

of cuts and the size of cuts to be undertaken.

5

Director-General Lamy also signaled that work in other areas—such as services, rules, 

and intellectual property matters—would need to advance to clarify certain issues.6

 In 

particular, the Director-General pointed out that consultations indicated that further work 

would be required on two matters related to the Agreement on Trade-Related Aspects of 

Intellectual Property Rights (TRIPS Agreement): a register for geographical indications 

and the relation between the WTO TRIPS Agreement and the United Nations Convention 

on Biological Diversity. 

On July 10, 2008, a third revision of negotiating texts for the Agriculture and NAMA 

groups was released7 but after intensive negotiations and consultations, the DirectorGeneral reported on July 30, 2008, that an impasse had been reached in establishing 

negotiating modalities in these groups.8

 He cited in particular a lack of convergence over 

the special safeguard mechanism, which would permit developing country members to 

apply a temporary increase in import duties to address import surges of agricultural 

products. This impasse dealt a setback to the goal of concluding the Doha Round in 2008, 

despite the progress made during the intensive negotiations in the first half of 2008.

9

In October 2008, the Director-General reported that, despite a quick resumption of talks 

in the negotiating groups, the July setback made it clear that the round would not be 

concluded by year-end 2008.10 He reiterated that the special safeguard mechanism was a 

key item in the discussions in the Agriculture group. The Director-General also reported 

that he convened a meeting of major providers of trade finance in November 2008 to 

examine the issue of availability of trade financing at affordable rates for developing 

countries, in view of the global financial crisis. 

In December 2008, despite the release of the fourth version of negotiating texts in the 

Agriculture and NAMA groups,11 the Director-General reported that the political drive to 

bridge remaining gaps was insufficient to finalize negotiating modalities by year-end 

2008. 12 He pointed out that several rounds of intensive consultations had focused on 

sectorals, the special safeguard mechanism for agricultural products, and the cotton issue 

affecting several least-developed country members. He also made suggestions for 

possible “early outcome” agreements in areas such as trade facilitation, duty- and quota3

 WTO, General Council, “Annual Report (2008),” 3. 4

 WTO, “Negotiations: agriculture and non-agricultural market access—Negotiating texts move Doha 

round closer to end game, says Lamy,” May 20, 2008, Press release 526. 5

 WTO, “Negotiations: agriculture and non-agricultural market access—Revised blueprints issued for 

final deal on agricultural and non-agricultural trade,” May 19, 2008, 2008 News item. 6

 WTO, General Council, “General Council,” May 7, 2008, JOB(08)/37, 2. 7

 WTO, “Director-General—Lamy says new negotiating texts set stage for crucial July talks,” July 10, 

2008, Press release 536. 8

 WTO, Trade Negotiations Committee, “Statement by the Chairman,” July 30, 2008, JOB(08)/94, 1. 

9

 WTO, General Council, “Annual Report (2008),” 3. 10 WTO, “Informal TNC Meeting at the Level of Head of Delegation—Chairman's Remarks,” October 

10, 2008, JOB(08)/100, 1-2; WTO, General Council, “Annual Report (2008),” 4. 11 WTO, “Director-General—Lamy welcomes revised agriculture and NAMA texts, considers next 

steps,” December 6, 2008, Press release 543. 12 WTO, Trade Negotiations Committee, “Chairman’s Introductory Statement,” December 17, 2008, 

JOB(08)/134, 1-3. 
3-3

ly 2009.14

 

free market access, cotton, and bananas, and noted that the issue of trade facilitation was 

most advanced. 

As a broader result of these consultations, the Director-General proposed that members 

move forward in 2009 on two fronts—one, to renew efforts in the Doha Round 

multilateral trade negotiations, but also more broadly to strengthen the systemic nature of 

the WTO as a central element of the multilateral trading system. 13 Concerning the 

broader nature of the WTO, the Director-General related the formation of an internal 

WTO task force that would provide regular updates on trade measures taken as a 

consequence of the global financial crisis. He reiterated the need for WTO monitoring of 

trade finance developments to ensure that the trade flows of developing countries are not 

adversely affected. The Director-General also highlighted the need for an increased focus 

in 2009 on the issue of Aid for Trade—the effort to establish international trade as a 

central element in developing and least-developed country members’ economic 

development policies—and noted that the second Global Review of Aid for Trade would 

be held in Ju

General Council 

In 2008, the General Council announced the selection of the first Executive Director of 

the Enhanced Integrated Framework (EIF), a trade-related technical assistance program 

for least-developed countries established by the WTO and five other multilateral 

economic institutions. The WTO General Council also welcomed two new members, 

Ukraine, acceding in May 2008, and Cape Verde, acceding in July 2008, as the 152nd and 

153rd WTO members, respectively. The council assessed reports on issues regarding 

small and vulnerable economies as well as special and differential treatment, and 

approved a number of waivers concerning various stages of adoption of newer versions 

of the Harmonized System (HS) tariff nomenclature. 

Work Programs, Decisions, and Reviews 

Enhanced Integrated Framework 

In October 2008, the WTO Director-General announced the selection of Ms. Dorothy 

Tembo, of Zambia, as the first Executive Director of the EIF. 15 The Integrated 

Framework for Trade-Related Technical Assistance to Least-Developed Countries 

(Integrated Framework, IF) was inaugurated in 1997 as a multilateral initiative by six 

multilateral institutions—the International Monetary Fund, International Trade Centre, 

United Nations Conference on Trade and Development, United Nations Development 

Program, World Bank, and World Trade Organization—to support the integration of the 

least-developed countries into the multilateral trading system. In December 2005, WTO 

members agreed at their Ministerial Conference in Hong Kong to broaden the capabilities 

of the IF by developing the EIF, a process approaching conclusion with the creation of 

the executive director post and the location of EIF offices on the premises of the WTO in 

13 WTO, General Council, “Annual Report (2008),” 4. 14 WTO, General Council, “Agenda Item 1—Report by the Chairman of the Trade Negotiations 

Committee,” February 3, 2009, JOB(09)/5, 1-2. 15 WTO, “Enhanced Integrated Framework—Enhanced Integrated Framework establishes an Executive 

Secretariat, welcomes Executive Director,” October 13, 2008, Press release 541. 
3-4

 

Geneva, Switzerland. Although the EIF will share the WTO administrative structure, it 

will continue to be governed by its six core agencies independently from the WTO 

Secretariat.16

Small economies 

The Dedicated Session of the WTO Committee on Trade and Development (CTD) 

reported at WTO General Council sessions throughout 2008 on its monitoring of 

proposals made by the small, vulnerable economies (SVEs) in the Doha Round.17 The 

Dedicated Session in particular monitored the SVE proposals made in the Agriculture, 

NAMA, Services, and Rules negotiating groups, in its effort to integrate them more fully 

into the multilateral trading system, as tasked by trade ministers at the Doha ministerial 

meeting in 2001.18 In December 2008, the Dedicated Session began an assessment of all 

SVE proposals, as compiled for them by the WTO Secretariat. The Dedicated Session 

also requested consultations with the Secretariat financial crisis task force on the impact 

of the crisis on SVE industrial and service sectors, in particular trade financing.19

Special and differential treatment 

The WTO Committee on Trade and Development reported to the WTO General Council 

on its work regarding its mandate received at the December 2005 WTO Hong Kong 

Ministerial Conference to review Doha Round proposals concerning special and 

differential treatment. In 2008, the committee reported that it had focused largely on 

areas concerning agreement-specific proposals, and elements of a possible monitoring 

mechanism.20

TRIPS Council matters 

In December 2008, the General Council agreed to extend the acceptance period until 

December 31, 2009, for the 2003 protocol amending the TRIPS Agreement concerning 

public health matters. The extension allows additional time for members to implement 

the WTO Decision on the Implementation of paragraph 6 of the Doha Declaration on the 

TRIPS Agreement and Public Health, which was adopted by the General Council in 

August 2003 and is scheduled to enter into force upon acceptance by two-thirds of the 

WTO members.21

16 WTO, “Enhanced Integrated Framework Executive Secretariat—Institutional and Administrative 

Arrangements—Communication from the Director-General,” July 21, 2008, WT/GC/115, 1-2. 17 The SVE members include Barbados, Fiji, Nicaragua, St. Vincent and the Grenadines, and the 

Solomon Islands. 18 WTO, General Council, “Annual Report (2008),” 5. In early 2002, the General Council approved as a 

standing item on the council's agenda a work program that was to address the special needs of SVEs. The 

council designated the CTD to meet in dedicated session on the subject and report regularly to the council on 

progress made. At the WTO Sixth Ministerial Conference in Hong Kong in December 2005, ministers 

instructed the CTD to continue this work program, monitoring the progress of the SVEs' proposals in the 

Doha Round and elsewhere. 19 WTO, General Council, “Annual Report (2008),” 6. 20 WTO, General Council, “Annual Report (2008),” 6–7. 21 Ibid., 7. The August 2003 Decision concerning the WTO TRIPS Agreement and Public Health 

permits developing and least-developed country members who lack sufficient pharmaceutical manufacturing 

capacity needed to confront public health crises (e.g., malaria, tuberculosis, HIV) to instead import cheaper 

generic versions of the necessary medicines that otherwise may be restricted from export under a compulsory 

licensing agreement due to their patented status. 
3-5

 

Cotton initiative 

In December 2008, the WTO Director-General updated the General Council on his work 

concerning development assistance in the cotton sector. Following the December 2003 

WTO Ministerial Conference in Cancun, Mexico, consultations between the DirectorGeneral and members led to a cotton initiative aimed at addressing issues raised about 

domestic agricultural support payments to cotton producers in the developed countries 

that affect unsubsidized cotton production in and exports from least-developed countries, 

in particular, from the four sub-Saharan African countries of Benin, Burkina Faso, Chad, 

and Mali. The General Council subsequently tasked the Director-General in 2004 to 

pursue these consultations. 

The Director-General reported that in 2008 there had been improvements both in the 

amount committed and in actual disbursements of development assistance to the cotton 

sector. However, he said further talks with the donor community were needed regarding 

this aid as well as regarding aspects of domestic cotton sector reform.22

Accessions 

The WTO General Council welcomed the accession of two new members during 2008.23

On May 16, 2008, Ukraine became the 152nd WTO member; on July 23, 2008, Cape 

Verde became the 153rd. In addition to the 153 members of the WTO by the end of 2008, 

there were 29 observers in various stages of the accession process, as well as the Vatican 

(Holy See), which is not required to accede to the WTO within five years as required of 

all other governments with WTO observership. (See tables 3.1 and 3.2 for WTO 

membership and WTO observers in 2008, respectively.) 

Waivers 

During 2008, the General Council agreed to grant or extend waivers from WTO 

obligations, particularly regarding members’ schedules of concessions resulting from the 

adoption of newer HS tariff schedule nomenclature (notably HS 1996, HS 2002, and HS 

2007), as well as waivers from most-favored-nation obligations when granting 

nonreciprocal trade preferences approved by members.24 The council also granted several 

waivers to members regarding particular individual obligations resulting from past 

concessions. 

WTO Director-General appointment process 

In December 2008, the General Council opened the selection process for the next 

Director-General, including the possibility of reappointment of the current DirectorGeneral.25

22 WTO, General Council, “Annual Report (2008),” 7–8. 23 WTO, “Ukraine becomes the WTO’s 152nd member,” Press release, May 16, 2008. 24 On March 24, 2009, the Council for Trade in Goods approved waiver requests from the United States 

for the AGOA, ATPA, and CBERA. 25 On April 30, 2009, the General Council agreed to reappoint Director-General Pascal Lamy for a 

second four-year term beginning September 1, 2009. WTO, “WTO members reappoint Lamy for a second 

term,” Press release, April 30, 2009. 
3-6

TABLE 3.1 WTO membership in 2008 

Albania Gambia Niger 

Angola Georgia Nigeria 

Antigua and Barbuda Germany Norway 

Argentina Ghana Oman 

Armenia Greece Pakistan 

Australia Grenada Panama 

Austria Guatemala Papua New Guinea 

Bahrain Guinea Paraguay 

Bangladesh Guinea Bissau Peru 

Barbados Guyana Philippines 

Belgium Haiti Poland 

Belize Honduras Portugal 

Benin Hong Kong, China Qatar 

Bolivia Hungary Romania 

Botswana Iceland Rwanda 

Brazil India Saint Kitts and Nevis 

Brunei Darussalam Indonesia Saint Lucia 

Bulgaria Ireland Saint Vincent and the Grenadines 

Burkina Faso Israel Saudi Arabia 

Burma/Myanmar Italy Senegal 

Burundi Jamaica Sierra Leone 

Cambodia Japan Singapore 

Cameroon Jordan Slovak Rep. 

Canada Kenya Slovenia 

Cape Verde Korea Solomon Islands 

Central African Rep. Kuwait South Africa 

Chad Kyrgyz Rep. Spain 

Chile Latvia Sri Lanka 

China, Peoples Rep. Lesotho Suriname 

Chinese Taipeia Liechtenstein Swaziland 

Colombia Lithuania Sweden 

Congo, Democratic Rep. Luxembourg Switzerland 

Congo, Rep. Macao, China Tanzania 

Costa Rica Macedonia (FYROM) Thailand 

Côte d’Ivoire Madagascar Togo 

Croatia Malawi Tonga 

Cuba Malaysia Trinidad and Tobago 

Cyprus Maldives Tunisia 

Czech Rep. Mali Turkey 

Denmark Malta Uganda 

Djibouti Mauritania Ukraine 

Dominica Mauritius United Arab Emirates 

Dominican Rep. Mexico United Kingdom 

Ecuador Moldova United States of America 

Egypt Mongolia Uruguay 

El Salvador Morocco Venezuela 

Estonia Mozambique Vietnam 

European Communities Namibia Zambia 

Fiji Nepal Zimbabwe 

Finland Netherlands, NL Antilles 

France New Zealand 

Gabon Nicaragua 

Source: WTO, “Members and Observers,” http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm

 (accessed March 17, 2009). 

 a

 In the WTO, the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu is informally referred to as 

“Chinese Taipei”; elsewhere it is also commonly referred to as “Taiwan.” 
3-7

TABLE 3.2 WTO observers in 2008 

Afghanistan Iran Serbia 

Algeria Iraq Seychelles 

Andorra Kazakhstan Sudan 

Azerbaijan Laos Tajikistan 

Bahamas Lebanon Uzbekistan 

Belarus Liberia Vanuatu 

Bhutan Libya Vatican (Holy See) 

Bosnia and Herzegovina Montenegro Yemen 

Comoros Russia 

Equatorial Guinea Samoa 

Ethiopia São Tomé and Príncipe 

Source: WTO, “Members and Observers,” http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm

(accessed March 17, 2009). 

Dispute Settlement 

This section focuses principally on complaints filed, and panel and Appellate Body 

findings and recommendations adopted, under the WTO Dispute Settlement 

Understanding during 2008. Appendix table A.19 shows developments during 2008 in 

the WTO dispute settlement cases in which the United States was either a complainant or 

respondent. A separate table is presented on disputes that were active during 2008 under 

the NAFTA dispute settlement procedures (appendix table A.20). 

The WTO Dispute Settlement Understanding (DSU) establishes a framework for the 

resolution of disputes that arise between members under the WTO agreements. Under 

the DSU, a complaining member may file a complaint with the WTO Dispute Settlement 

Body (DSB). The member must then seek to resolve the dispute through consultations 

with the named respondent party. If the parties fail to resolve the dispute through 

consultations, the complaining party may ask the DSB to establish a panel to review the 

matters raised in the complaint and make findings and recommendations. Either party 

may appeal issues of law covered in the panel report and legal interpretations developed 

by the panel to the WTO’s Appellate Body.26 The findings and recommendations of the 

Appellate Body and panel (as modified by the Appellate Body) are then generally 

adopted without change by the DSB. While the guidelines suggest that panels complete 

their proceedings in six months, and the Appellate Body complete its review in 60 days, 

these periods may be extended. 

Once the panel report or the Appellate Body report is adopted, the party concerned must 

notify its intentions with respect to implementation of adopted recommendations. If it is 

impracticable to comply immediately, the party concerned is given a reasonable period of 

time, the latter to be decided either by agreement of the parties and approval by the DSB 

or through arbitration. Further DSU provisions set out rules for compensation or the 

suspension of concessions in the event of non-implementation. Within a specified time 

frame, parties can enter into negotiations to agree on mutually acceptable compensation. 

Where this has not been agreed, a party to the dispute may request authorization of the 

DSB to suspend concessions or other obligations to the other party concerned. 

Disagreements over the proposed level of suspension may be referred to arbitration. 

The section below focuses on new requests for consultations filed, the issues before new 

panels established during 2008, and panel reports and Appellate Body reports issued 

during 2008. The summaries in this section are intended to highlight some of the key 

 26 WTO Dispute Settlement Understanding, Article 17.6. 
3-8

 

issues raised in the complaint or in a panel or Appellate Body report. They should not be 

regarded as comprehensive or as reflecting a U.S. government interpretation of the issues 

raised or addressed. The summaries are based primarily on information contained in 

longer summaries published online by the World Trade Organization. Several cases with 

complex issues remained pending before panels throughout 2008 with little or no activity. 

For example, disputes involving trade in large civil aircraft brought by the United States 

against the European Communities (EC)27 (DS316) and by the EC against the United 

States (DS353) and a dispute brought by the United States against China relating to 

protection and enforcement of intellectual property rights (DS362), in which panels were 

established in 2005, 2006, and 2007, respectively, remained pending throughout 2008, 

with panel reports expected in 2009.28 In addition, litigation in a number of disputes 

continued well beyond the adoption of panel and Appellate Body reports, as parties 

pressed for implementation of recommendations or sought compensation and/or 

suspension of concessions in the case of non-implementation. During 2008, the United 

States was involved in several such matters, including in pressing for EC implementation 

of DSB recommendations on EC measures on biotech products,29 claims by Brazil that 

certain changes in U.S. agricultural support measures failed to bring them into conformity 

with the DSB recommendations in the upland cotton case,30 and claims by the EC that the 

United States had not fully complied with DSB recommendations relating to “zeroing” in 

calculating dumping margins.31

New Requests for Consultations and New Panels Established 

During 2008, WTO members filed 19 new requests for WTO dispute settlement 

consultations. This compares with 13 in 2007, 22 in 2006, and 12 in 2005. Three of the 

requests were resolved in December 2008 when the United States, Canada, and the EC, 

respectively, entered into memoranda of understanding with China relating to certain 

27 The term EC is used rather than EU in the WTO dispute settlement section because the source 

documents (WTO online summaries) use EC. 28 See WTO, DSB, Online summaries of DS316, European Communities—Measures Affecting Trade 

in Large Civil Aircraft; DS353, United States—Measures Affecting Trade in Large Civil Aircraft—Second 

Complaint; and DS362, China—Measures Affecting the Protection and Enforcement of Intellectual Property 

Rights. A panel report in dispute DS362 was circulated on January 26, 2009. 29 The issue here involved EC implementation of panel report recommendations adopted in December 

2006 relating to EC measures affecting the approval and marketing of biotech products. In January 2008, the 

United States asked for authority to suspend concessions. The EC objected and on February 6, 2008, referred 

the matter to arbitration. On February 15, 2008, the EC and United States jointly asked the arbitrator to 

suspend work pursuant to procedures agreed to by the EC and United States. WTO, DSB, DS291: European 

Communities—Measure Affecting the Approval and Marketing of Biotech Products, Online summary. See 

also, USTR, “Statement on EC-Biotech Dispute,” January 14, 2008. 30 Brazil alleged that measures taken by the United States to comply with the DSB recommendations in 

DS267, United States—Upland Cotton, failed to implement the DSB recommendations. Brazil requested 

establishment of an Article 21.5 panel, and the panel’s report was circulated in December 2007. Both the 

United States and Brazil appealed certain of the findings in the panel report. On June 2, 2008, the Appellate 

Body issued its report, generally upholding the panel report and finding that the changes to the U.S. support 

measures did not bring the United States into conformity with the DSB recommendations. The DSB adopted 

the panel report (as modified) and Appellate Body report on June 20, 2008. WTO, DSB, DS267: United 

States—Subsidies on Upland Cotton, Online summary. 31 The EC requested establishment of a compliance panel on September 13, 2007, asserting a 

disagreement as to whether the United States had complied with certain DSB recommendations. The 

compliance panel found that the United States had failed to comply with DSB recommendations in 

administrative reviews in two cases reviewed, but that it had not failed to comply with recommendations in 

administrative reviews in three other cases reviewed. WTO, DSB, DS294: United States—Laws, Regulations 

and Methodology for Calculating Dumping Margins (Zeroing), Online summary. 
3-9

 

measures by China affecting financial information services and suppliers; a fourth 

involving Indonesia and South Africa was withdrawn when South Africa withdrew 

antidumping measures. Five new dispute settlement panels were established in 2008, 

compared to 14 in 2007, 14 in 2006, and 7 in 2005. Table 3.3 shows the five cases in 

which panels were established during 2008. 

The United States was either the complaining party or the respondent in nearly half the 

complaints filed during 2008.32 The United States filed 3 of the 19 requests for dispute 

settlement consultations during 2008, with two directed against China and one against the 

EC. In the first of these, China—Measures Affecting Financial Information Services and 

Foreign Financial Information Suppliers (DS373), the United States and China, as noted 

above, reached an agreement in the form of a Memorandum of Understanding, which was 

notified to the WTO on December 4, 2008; no panel was established.33 In the second, 

relating to EC tariff treatment of certain information technology products (DS375), the 

United States requested establishment of a panel after consultations failed to resolve the 

dispute, and a panel was established on September 23, 2008 (see further description 

below). In the third request, the United States challenged certain grants, loans, and other 

incentives provided to enterprises by China on the condition that they meet certain export 

performance criteria (DS387); as of year-end 2008, no panel had been requested or 

established.34 

Six requests for dispute settlement consultations during 2008 were filed against the 

United States—two by Mexico and one each by Brazil, Canada, China, and Thailand. 

While no panels had been established in any of the six cases as of the end of 2008, a 

panel was established on January 20, 2009 in one of the six—DS379. In the respective 

complaints, China challenged determinations and orders of the Department of Commerce 

in several antidumping and countervailing duty investigations involving imports from 

32 Of the 19 complaints filed during 2008, three each were filed by the United States, the EC, and 

Mexico, while two were filed by Canada. Brazil, China, Chinese Taipei, India, Indonesia, Japan, the 

Philippines, and Thailand each filed one complaint. The United States was named as the respondent in six of 

the disputes, followed by China (five), the EC (four), Thailand (two), and India and South Africa, one each. 33 In its request for consultations, the United States raised claims about a number of Chinese measures 

affecting financial information services and foreign financial services suppliers in China, including measures 

that require foreign financial information suppliers to supply their services through an entity designated by 

Xinhua News Agency. The United States alleged that these and other requirements and restrictions accord 

less favorable treatment to foreign information services and service suppliers than those accorded to Chinese 

financial information services and service suppliers that are not affected by these requirements and 

restrictions. The United States alleged that the measures are inconsistent with various provisions of the 

GATS, the horizontal standstill commitment contained in China’s schedule of obligations under the GATS, 

and China’s Protocol of Accession. The United States requested consultations on March 3, 2008; on March 

14, 2008, the EC requested to join the consultations. On December 4, 2008, China and the United States 

informed the DSB that they had reached an agreement in relation to this dispute in the form of a 

Memorandum of Understanding. WTO, DSB, DS373: China—Measures Affecting Financial Information 

Services and Foreign Financial Information Suppliers, Online summary. See also, USTR, “China to End 

Restrictions on Suppliers of Financial Information Services Challenged by United States in WTO,” 

November 13, 2008. 34 In its request for consultations, the United States raised claims about certain Chinese measures 

offering grants, loans, or other incentives to enterprises in China on the condition that those enterprises meet 

certain export performance criteria. The United States alleged that the measures are inconsistent with Article 

3 of the SCM Agreement, Articles 3, 9, and 10 of the Agreement on Agriculture, various provisions of 

China’s Protocol of Accession, and Article III:4 of the GATT 1994. The United States filed its request for 

consultations on December 19, 2008. On January 15, 2009, Canada, the EC, Mexico, and Turkey requested to 

join the consultations, and on January 16, 2009, Australia requested to join the consultations. WTO, DSB, 

DS387: China—Grants, Loans and Other Incentives, Online summary. See also, USTR, “United States Files 

WTO Case Against China Over Illegal Support for Chinese ‘Famous Brands,’” December 19, 2008. 
3-10

TABLE 3.3 WTO dispute settlement panels established in 2008 

Case No. Complainant Respondent Case Name Panel Established 

DS367 New Zealand Australia Measures Affecting the Importation of Apples 

from New Zealand 

Jan. 21, 2008 

DS371 Philippines Thailand Customs and Fiscal Measures on Cigarettes 

from the Philippines 

Nov. 17, 2008 

DS375 United States EC Tariff Treatment of Certain Information 

Technology Products 

Sept. 23, 2008 

DS376 Japan EC Tariff Treatment of Certain Information 

Technology Products 

Sept. 23, 2008 

DS377 Chinese Taipei EC Tariff Treatment of Certain Information 

Technology Products 

Sept. 23, 2008 

Source: Derived from WTO, “Dispute Settlement: The Disputes, Chronological List of Disputes Cases.” 

http://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm (accessed February 20, 2009). 

China (DS379);35 Mexico challenged certain U.S. measures relating to the labeling of 

Mexican tuna and tuna products as “dolphin safe” (DS381); 36 Brazil challenged certain 

U.S. laws, regulations, and procedures applied in U.S. antidumping duty reviews relating 

to imports of orange juice from Brazil (DS382);37 Thailand challenged the U.S. practice 

of “zeroing” in calculating overall weighted-average dumping margins in an investigation 

involving polyethylene retail carrier bags from Thailand (DS383);38 and Canada39 and 

Mexico, 40 in separate complaints, challenged certain U.S. country-of-origin labeling 

requirements for beef and pork at the retail level. 

Panels established during 2008 at the request of the United States 

During 2008, the DSB established a panel in one case at the request of the United States 

(DS375). The issues raised and procedural history of this dispute are summarized below. 

One panel established at U.S. request in November 2007 (DS363) became fully active in 

March 2008 when the panel was composed and, as a consequence, is also detailed below. 

 35 WTO, DSB, DS379: United States—Definitive Anti-Dumping and Countervailing Duties on Certain 

Products from China, Online summary. 36 WTO, DSB, DS381: United States—Measures Concerning the Importation, Marketing and Sale of 

Tuna and Tuna Products, Online summary. 37 WTO, DSB, DS382: United States—Anti-Dumping Administrative Reviews and Other Measures 

Related to Imports of Certain Orange Juice from Brazil, Online summary. 38 WTO, DSB, DS383: United States—Anti-Dumping Measures on Polyethylene Retail Carrier Bags 

from Thailand, Online summary. 39 WTO, DSB, DS384: United States—Certain Country of Origin Labeling (Cool) Requirements, 

Online summary. 40 WTO, DSB, DS386: United States—Certain Country of Origin Labeling Requirements, Online 

summary. 
3-11

 

Measures by China Affecting Trading Rights and Distribution Services for Certain 

Publications and Audiovisual Entertainment Products (DS363) 

The United States filed its request for consultations in this matter on April 10, 2007, and 

its request for a panel on October 10, 2007. The DSB established a panel on November 

27, 2007, and the Director-General composed the panel on March 27, 2008. The United 

States alleged that various Chinese measures reserve trading rights for certain 

publications and audiovisual entertainment products only to certain Chinese statedesignated and wholly or partially state-owned enterprises, and that various Chinese 

measures impose market access restrictions or discriminatory limitations on foreign 

service providers seeking to engage in the distribution of publications and certain 

audiovisual home-entertainment products. The United States claimed that such measures 

are inconsistent with China’s obligations under its Protocol of Accession, the GATT 

1994, and the General Agreement on Trade in Services (GATS). The panel was expected 

to issue its final report to the parties in May 2009.41

Tariff Treatment by the European Communities and its Member States of Certain 

Information Technology Products (DS375) 

The United States filed its request for consultations on May 28, 2008. In its complaint, 

the United States, joined by Japan and Taiwan, claimed that the tariff treatment the EC 

and its member states accord to certain information technology products (e.g., flat panel 

displays, facsimile machines) does not respect their commitments to provide duty-free 

treatment for these products under the Information Technology Agreement. The United 

States (and Japan and Taiwan) also claimed that a number of EC customs classification 

instruments alone or in combination with EEC Council Regulation No. 2658/87, and 

certain amended explanatory notes published in the EC Official Journal after their 

application, are inconsistent with the EC’s and member states’ obligations under Articles 

II and X of GATT 1994. On August 18, 2008, the United States, Japan, and Taiwan 

requested establishment of a panel, and the DSB established a panel on September 23, 

2008. The case was pending at year-end 2008.42

Appellate Body and Panel Reports Issued and/or Adopted During 2008 That 

Involved the United States 

 

During 2008, reports were issued by panels and/or the Appellate Body in seven cases in 

which the United States was the complainant or a respondent. As noted above, several 

other disputes before panels in which the United States was either the complainant or a 

respondent were pending during the year. 

41 WTO, DSB, DS363: China—Measures Affecting Trading Rights and Distribution Services for 

Certain Publications and Audiovisual Entertainment Products, Online summary. 42 WTO, DSB, DS375: European Communities and it Member States—Tariff Treatment of Certain 

Information Technology Products, Online summary. See also, USTR, “U.S. Files WTO Case Challenging EU 

Tariffs on Certain Technology Products,” May 28, 2008. 
3-12 

 

Reports in which the United States was the complainant 

Measures by China Affecting Imports of Automobile Parts (DS340) 

In this dispute the United States (and the EC and Canada) argued that China was 

assessing duties on certain auto parts at rates significantly above its bound rates. The 

panel issued its rulings on July 18, 2008, relating to the U.S. (and EC and Canadian) 

claims. With respect to the U.S. claims, the panel found China’s Policy Order 8 to be 

inconsistent with China’s obligations under Articles II and III of the GATT 1994 and 

China’s Working Party Report, but exercised judicial economy in not making findings 

with regard to certain other U.S. claims. On September 15, 2008, China notified its 

decision to appeal certain issues of law and legal interpretations of the panel to the 

Appellate Body. In a report circulated on December 15, 2008, the Appellate Body 

generally upheld the panel’s findings with regard to China’s obligations under Articles II 

and III, but reversed the panel’s finding that China’s Policy Order 8 is inconsistent with 

China’s commitment under China’s Working Party Report. On January 12, 2009, the 

DSB adopted the Appellate Body report and panel report, as modified.43 

Additional Duties Imposed by India on Imports from the United States (DS360) 

The United States alleged that additional or extra-additional duties applied by India to 

imports from the United States, including wines and distilled products, were inconsistent 

with certain provisions of Articles II and III of the GATT 1994. The panel circulated its 

report on June 9, 2008. The panel found that the United States had failed to establish that 

India’s additional duty on alcoholic liquor was inconsistent with Article II of the GATT 

1994, and in light of its conclusions, made no recommendations. However, the panel also 

noted that India had made certain changes to its additional duties after the establishment 

of the panel to address concerns raised by India’s trading partners. The United States 

appealed certain issues of law and legal interpretations of the panel to the Appellate Body. 

In its report circulated on October 30, 2008, the Appellate Body rejected certain U.S. 

claims about the scope of the U.S. challenge, but found that the panel had erred in its 

interpretation of Article II and also found that India’s additional duty and extra-additional 

duty would not be justified under Article II to the extent that they result in duties 

exceeding those set out in India’s Schedule of Concessions. On November 17, 2008, the 

DSB adopted the Appellate Body report and the panel report as “reversed” by the 

Appellate Body report.44 

43 WTO, DSB, DS340: China—Measures Affecting Imports of Automobile Parts, Online summary. See 

also, USTR, “WTO Appellate Body Confirms Finding Against China’s Taxation of U.S. Auto Parts,” 

December 15, 2008. 44 WTO, DSB, DS360: India—Additional and Extra-Additional Duties on Imports from the United 

States, Online summary. See also, USTR, “WTO Appellate Body Reverses Panel and Finds in Favor of the 

United States,” October 30, 2008. 
3-13

 

Reports in which the United States was the respondent 

 Continued U.S. Suspension of Obligations in the EC—Hormones Dispute (DS320) 

In this dispute the EC challenged continuing U.S. retaliatory measures against the EC 

based on the EC’s alleged failure to lift its ban on hormone-treated beef in response to 

earlier reports adopted by the DSB in DS26 and DS48. Following adoption of those 

reports, in 2003 the EC amended its ban on beef from certain hormone-treated cattle and 

claimed that its measures were now WTO-consistent. In its complaint filed in November 

2004, the EC contended, among other things, that the United States, by having failed to 

remove the retaliatory measures, was in violation of its obligations under Articles I and II 

of GATT 1994 and also certain articles of the DSU. The panel circulated its report on 

March 31, 2008, finding, among other things, that the United States was not in violation 

of its obligations to the extent that the EC measure earlier found to be in violation has not 

been removed. Both the EC and United States appealed certain findings. The Appellate 

Body circulated its report on October 16, 2008, affirming the panel’s findings in part and 

reversing them in part. Among other things, the Appellate Body said that it was unable to 

complete its analysis as to whether the EC’s directive amending its measures brought the 

EC into substantive compliance with the earlier DSB recommendations, and concluded 

that the recommendations and rulings adopted by the DSB in EC—Hormones remain 

operative. On November 14, 2008, the DSB adopted the panel report (as modified) and 

Appellate Body report.45

 

 U.S. Measures Relating to Shrimp from Thailand (DS343) 

In this dispute Thailand alleged that the United States, through its use of “zeroing” in 

calculating dumping margins in an antidumping case involving shrimp from Thailand, 

had failed to make a fair comparison between the export price and the normal value, and 

had calculated distorted margins of dumping in violation of certain articles of the WTO 

Antidumping Agreement and certain articles of the GATT 1994. The panel circulated its 

report on February 29, 2008, finding that the United States had acted inconsistently with 

Article 2.4.2 and Article 18.1 of the Antidumping Agreement and the Ad Note to the 

Agreement. Thailand and the United States appealed certain issues of law and 

interpretation to the Appellate Body. The Appellate Body circulated its report on July 16, 

2008, generally upholding the panel findings that the U.S. calculation was not reasonable 

under the Ad Note or necessary under Article XX(d) of the GATT 1994. On August 1, 

2008, the DSB adopted the panel’s report, as modified by the Appellate Body report. On 

October 31, 2008, the United States and Thailand notified the DSB that the United States 

had agreed to implement the DSB recommendations and rulings by April 1, 2009.46

 U.S. Antidumping Measures on Stainless Steel from Mexico (DS344) 

In this dispute Mexico alleged that certain provisions of the U.S. antidumping law and 

regulations and U.S. administrative practices and methodologies, including “zeroing,” 

employed by the U.S. Department of Commerce in antidumping investigations and 

45 WTO, DSB, DS320: United States—Continued Suspension of Obligations in the EC—Hormones 

Dispute, Online summary. See also the Section 301 part of chap. 2 and the EU section of chap. 5. 46 WTO, DSB, DS343: United States—Measures Relating to Shrimp from Thailand, Online summary. 
3-14

 

administrative reviews involving stainless steel sheet and strip from Mexico were 

inconsistent with U.S. obligations under the GATT 1994 and the Antidumping 

Agreement. In its report circulated on December 20, 2007, the panel found that the use 

of model zeroing in investigations is inconsistent with Article 2.4.2 of the Antidumping 

Agreement. It also found that Commerce acted inconsistently with Article 2.4.2 in using 

model zeroing in its administrative reviews regarding imports of Mexican stainless steel 

sheet and strip. However, the panel found that use of simple zeroing in periodic reviews 

is not inconsistent with Articles VI:1 and VI:2 of the GATT 1994 or Articles 2.1, 9.3, and 

2.4 of the Antidumping Agreement, and that Commerce’s actions in using simple zeroing 

in its periodic reviews of dumping margins in the Mexican stainless steel sheet and strip 

were not inconsistent with U.S. WTO obligations.47

In January 2008, Mexico appealed certain issues of law and interpretation covered by the 

panel report to the Appellate Body. In a report circulated on April 30, 2008, the Appellate 

Body reversed the panel’s finding on simple zeroing, and found that simple zeroing in 

periodic reviews is inconsistent with Article VI:2 of the GATT 1994 and Article 9.3 of 

the Antidumping Agreement. It also reversed the panel’s finding regarding Commerce’s 

use of simple zeroing in the Mexican stainless steel sheet and strip reviews. On May 20, 

2008, the DSB adopted the Appellate Body report and panel report as modified. The 

United States notified the DSB that it intended to comply and would need a reasonable 

amount of time for implementation. Mexico asked that the deadline for implementation 

be determined through binding arbitration. An arbitrator was appointed, and on October 

31, 2008, the arbitrator determined that the deadline date should be April 30, 2009.48

 

 U.S. Customs Bond Directive for Merchandise Subject to Antidumping/Countervailing 

 Duties (DS345) 

In this dispute India alleged that the amended U.S. customs bond directive and the 

enhanced bond requirement imposed by the United States on imports of frozen warmwater shrimp from India are inconsistent with U.S. obligations under various articles of 

the Antidumping Agreement, the Subsidies and Countervailing Measures (SCM) 

Agreement, and the GATT 1994. A panel was established in November 2006 and 

composed in January 2007. In a report circulated on February 29, 2008, the panel 

rejected India’s claims that the U.S. laws, rules, and regulations that authorize the 

imposition of the enhanced bond requirement and the instruments comprising the 

amended customs bond directive are inconsistent with U.S. obligations. However, the 

panel upheld India’s claims that the application of the enhanced bond requirement to 

subject shrimp from India is inconsistent with certain articles of the Antidumping 

Agreement and with the Ad Note; that application of the enhanced bond requirement to 

subject shrimp from India prior to the imposition of the antidumping order is inconsistent 

with the Antidumping Agreement; and that the United States violated the Antidumping 

Agreement and the SCM Agreement because it failed to notify the amended customs 

bond directive to the Antidumping and SCM Committees. The panel rejected the U.S. 

argument that the application of the enhanced bond requirement is justified under Article 

XX(d) of the GATT 1994. It declined to rule on certain other claims made by India.49 

47 WTO, DSB, DS344: United States—Final Anti-dumping Measure on Stainless Steel from Mexico, 

Online summary. 48 Ibid. 

49 WTO, DSB, DS345: United States—Customs Bond Directive for Merchandise Subject to AntiDumping/Countervailing Duties, Online summary. 
3-15

India (on April 17, 2008) and the United States (on April 29, 2008) notified the DSB of 

their respective decisions to appeal. On July 16, 2008, the Appellate Body circulated its 

report generally upholding the panel’s findings, including the panel’s conclusion that the 

application of the U.S. enhanced bond requirement to the subject shrimp is inconsistent 

with Article 18.1 of the Antidumping Agreement because it is inconsistent with the Ad 

Note to Article VI:2 and 3 of the GATT 1994. The DSB adopted the Appellate Body 

report and panel report (as modified) on August 1, 2008. On October 31, 2008, the 

United States and India notified the DSB that they had agreed that the reasonable time for 

the United States to implement the DSB recommendations and rulings is eight months, 

expiring on April 1, 2009.50

 Continued Existence and Application of U.S. Zeroing Methodology (DS350) 

In this dispute the EC challenged U.S. “zeroing” methodology in calculating the margin 

of dumping, including the methodology set out in Commerce’s implementing regulation 

and Commerce’s Antidumping Manual (1997 edition). The EC alleged that the U.S. 

regulation and zeroing methodology and procedures for determining the dumping margin 

are inconsistent with several articles of the Antidumping Agreement and the GATT 1994. 

In a report circulated on October 1, 2008, the panel found that the United States acted 

inconsistently with its obligations (1) under Article 2.4.2 of the Antidumping Agreement 

by using model zeroing in four investigations at issue; (2) under Article VI:2 of the 

GATT 1994 and Article 9:3 of the Antidumping Agreement by applying simple zeroing 

in 29 periodic reviews at issue; and (3) under Article 11.3 of the Antidumping Agreement 

by using, in the eight sunset reviews at issue, dumping margins obtained through model 

zeroing in prior investigations. In November 2008 both the EC and United States 

notified the Appellate Body of their decision to appeal the panel findings, and the appeal 

was pending at year-end.51 

 

Organization for Economic Cooperation and 

Development 

OECD is an international organization with 30 member countries committed to 

democracy and the market economy. 52 The OECD Trade Committee is a forum designed 

to allow policy officials to have dialog about policy issues and developments in trade 

relations.53 During 2008, the OECD Trade Committee focused on outreach programs to 

nonmember countries, including its Global Forum on Trade to engage private sector and 

civil society groups as well as nonmember countries, and Aid for Trade issues designed 

to build developing countries’ trade capacity. At the June 2008 OECD Ministerial 

 50 Ibid. 

51 WTO, DSB, DS350: United States—Continued Existence and Application of Zeroing Methodology, 

Online summary. 52 The OECD was established in 1961. Its 30 members are Australia; Austria; Belgium; Canada; Czech 

Republic; Denmark; Finland; France; Germany; Greece; Hungary; Iceland; Ireland; Italy; Japan; Korea; 

Luxembourg; Mexico; Netherlands; New Zealand; Norway; Poland; Portugal; Slovak Republic; Spain; 

Sweden; Switzerland; Turkey; the United Kingdom; and the United States. OECD, “About OECD,” 

http://www.oecd.org/pages/0,3417,en_36734052_36734103_1_1_1_1_1,00.html (accessed July 10, 2009). 53 OECD, “OECD Trade Committee,” 

http://www.oecd.org/document/33/0,3343,en_2649_37431_41332513_1_1_1_1,00.html (accessed July 10, 

2009). 
3-16

 

Council meeting, member countries’ discussions mirrored these outreach efforts to 

candidate countries and others. Ministers also discussed the economics of climate change, 

sovereign wealth funds, and the effect of the recent credit markets upheaval on the 

current economic situation. In November 2008, the OECD member countries issued 

several pledges reaffirming their commitment to maintain open trade and investment 

conditions in their markets, and to continue to provide support for developing countries 

during the worldwide economic and financial instability. In particular, OECD members 

underlined the need to maintain the availability of export credits to underpin the 

continued flow of international trade.54

Trade Committee 

The OECD Trade Committee held three meetings during 2008, in March,55 May,56 and 

October.57 It addressed several working parties’ reports about ongoing activities; took up 

systemic policy discussions on bilateral and regional trade agreements and on nontariff 

measures; considered several outreach matters dealing with nonmember countries, such 

as inviting certain governments as ad hoc observers, continuing the Global Forum on 

Trade venue, and reviewing Aid for Trade matters; and addressed a number of 

institutional and administrative issues, such as the renewal of mandates for working 

parties, preparations for the OECD Ministerial Council meeting, and the committee’s 

work program. Brazil and the committee also reviewed jointly selected trade issues 

concerning Brazil’s trade policy. 

Ongoing Activities of the Trade Committee 

In March 2008, the Working Party of the Trade Committee reported that its recent work 

centered around analysis of three key areas—trade in services, trade and domestic 

economic policies, and the benefits of trade liberalization. The Joint Group on Trade and 

54 A number of multilateral and plurilateral institutions and groups expressed similar concerns during 

the year as the worldwide financial crisis deepened, reaffirming from their own particular perspectives their 

support for developing countries and commitments to avoid trade protectionist measures, such as found in the 

OECD ministerial meeting in June 2008; the APEC ministerial meeting in November 2008; the WTO 

General Council meeting in December 2008; and the declaration from the Group of Twenty meeting in 

London, England, in April 2009. Leaders of the Group of Twenty, “The Global Plan for Recovery and 

Reform,” April 2, 2009; OECD, “OECD Ministerial Declaration on Policy Coherence for Development,” 

June 4, 2008, C/MIN(2008)2/FINAL; APEC, “The Twentieth APEC Ministerial Meeting—Joint Statement,” 

November 19-20, 2008; and WTO, Trade Negotiations Committee, “Chairman’s Introductory Statement,” 

December 17, 2008, JOB(08)/134. 55 OECD, “Summary Record of the 149th Session of the Trade Committee,” August 21, 2008, 

TAD/TC/M(2008)1/PROV; OECD, “Summary Record of the 149th Session of the Trade Committee,” May 

21, 2008, TAD/TC/M(2008)2/PROV. 56 OECD, “Summary Record of the 150th Session of the Trade Committee,” October 29, 2008, 

TAD/TC/M(2008)3/ANN; OECD, “Summary Record of the 150th Session of the Trade Committee,” October 

29, 2008, TAD/TC/M(2008)3/PROV. 57 OECD, “Summary Record of the 151st Session of the Trade Committee,” December 18, 2008, 

TAD/TC/M(2008)4/ANN; OECD, “Summary Record of the 151st Session of the Trade Committee,” 

December 18, 2008, TAD/TC/M(2008)4. 
3-17

 

Environment reported that its focus had been on national trade and environment policies, 

such as trade and climate change, as well as on environmental measures in regional trade 

agreements.58

In May 2008, the Working Party of the Trade Committee reported on deliberations 

concerning trade and investment, as well as a cooperative project with the Directorate on 

Science and Technology regarding the positive relationship found between strengthening 

intellectual property rights and advances in innovation.59 The Working Party on Export 

Credits and Credit Guarantees updated the committee on the three most recent 

agreements reached: (1) OECD Recommendations on Export Credits in Respect of 

Antibribery, (2) OECD Recommendations on Export Credits in Respect of the 

Environment, and (3) Agreement on Principles and Guidelines for Sustainable Lending. 

In October 2008, the Working Party of the Trade Committee reported on trade facilitation 

as well as the OECD-wide initiative on the political economy of reform.60 The working 

party also considered the issue of policy coherence for economic development as part of 

the broad OECD initiative to investigate how reforms in different areas of a developing 

country’s economy can produce a more coherent impact in support of economic 

development objectives. The working party reported progress in data collection and 

refining methodologies for a major review of Aid for Trade to take place in mid-2009. 

The Joint Working Party for Agriculture and Trade also made its first presentation to the 

Trade Committee in its effort to keep the committee informed on related areas. 

Multilateral Trading System Discussions 

In March 2008, the Trade Committee initiated a discussion series designed to provide an 

increased opportunity for policymakers to exchange views on issues of timely importance 

to the multilateral trade system. Such issues often prove difficult to address sufficiently or 

broadly enough at the WTO in Geneva, Switzerland. 

Bilateral and regional trade agreements in the multilateral trading system 

The first topic concerned bilateral and regional trade agreements in the multilateral 

trading system. The Secretariat provided a short issues paper of five questions, as well as 

a select bibliography of staff work in the area, and three delegations tabled short papers 

for discussion purposes. 

In May, the committee continued the discussion of bilateral and regional trade 

agreements in the multilateral trade system, focusing in particular on commercial 

business views of the implications of an expanded use of bilateral and regional trade 

agreements in world trade. 61 Key questions included (1) what priority do commercial 

businesses accord to these agreements? (2) with the expansion of bilateral and regional 

trade agreements, does business now see the multilateral trade system as less important or 

less effective? (3) what trade measures does business consider most important to include 

in these agreements? (4) does the proliferation of bilateral and regional trade agreements 

reduce or increase transaction costs for business? (5) does overlapping country 

membership in these agreements create confusion or problems for business about which 

58 “Summary Record of the 149th Session of the Trade Committee.” 

59 “Summary Record of the 150th Session of the Trade Committee.” 

60 “Summary Record of the 151st Session of the Trade Committee.” 

61 “Summary Record of the 150th Session of the Trade Committee.” 
3-18

 

rules to follow, such as different rules of origin among different regional trade 

agreements? and (6) is there some way that business can help ensure in the elaboration 

and implementation of these agreements that they ultimately support the multilateral 

trade system? 

The committee heard the views of the OECD Business and Industry Advisory Committee 

(BIAC) representatives regarding these questions. The BIAC representatives said that 

businesses often distinguish between bilateral and regional trade agreements, finding 

regional agreements to be more positive and more likely to extend liberalization further 

to the global level that, in turn, permits significant economies of scale and provides 

broader investment choices for businesses. The BIAC representatives observed that, 

while regional agreements may prove a second-best solution when the multilateral trade 

system cannot provide an immediate solution to a trade problem, such agreements are 

unlikely to displace the multilateral trade system in the longer run. The BIAC 

representatives suggested including the subject of competition policy in regional 

agreements, a subject not yet addressed by the multilateral trade system. 

In response to whether regional agreements increased transaction costs, the BIAC 

representatives emphasized the importance to the business sector of integrated global 

supply chains for goods and services, encouraging the committee to carry out an analysis 

of obstacles that impede these supply chains and at what cost. The BIAC representatives 

also pointed out that differences in rules of origin often come about as a result of pressure 

from industry itself, and that a harmonized version of origin rules would tend to diminish 

the costs of doing business. 

Nontariff measures 

In October 2008, the Trade Committee opened a discussion on nontariff measures under 

its systemic policy discussion series.62 The Secretariat provided a short issues paper and 

three delegations tabled short papers for discussion purposes. At the conclusion, the 

committee requested the Secretariat develop a detailed outline of aspects of nontariff 

measures that might serve as a framework for future discussions, as well as compile a list 

of other suggested topics that delegates might choose for future systemic policy 

discussions. 

Administrative Matters and Public Outreach 

The Trade Committee dealt with a number of administrative matters during 2008, 

including mandate renewals for the Trade Committee, Working Party of the Trade 

Committee, Joint Working Party on Agriculture and Trade, and the Working Party on 

Export Credits and Credit Guarantees; preparations for the June 2008 Ministerial Council 

meeting; and continuation of the OECD Global Forum on Trade’s public outreach 

program for 2009 and beyond. The Global Forum on Trade program provides the 

opportunity for OECD committees to interact and exchange views with public 

stakeholders on subjects of mutual interest. This provides for exchanges of views 

between OECD members and nonmember officials, but also policy analysts, researchers, 

experts in the field, business leaders, and others. To date, Global Forums have been 

established to discuss agriculture, competition policy, education, international 

investment, public governance issues, sustainable economic development, taxation, and 

62 “Summary Record of the 151st Session of the Trade Committee.” 
trade. Several other forums are currently planned concerning biotechnology, finance, and 

the knowledge economy. 

Asia-Pacific Economic Cooperation (APEC) 

APEC is an international organization that consists of Pacific Basin countries seeking to 

enhance intra-regional economic growth and cooperation.63 The organization operates as 

a cooperative, multilateral economic and trade group, whose decisions are made by 

consensus, and whose commitments are undertaken voluntarily. APEC leaders meet 

annually to provide direction to the organization in the form of action-oriented work 

programs, and to define priorities for its committees, working groups, senior officials 

meetings, and special task groups. Since its inception, APEC has aimed to facilitate 

economic growth, trade, investment, and cooperation in the Asia-Pacific region. 64 To 

reach its objectives, member countries committed to the “Bogor Goals” in 1994, which 

set forth a timetable for creating a free and open trade and investment area in the AsiaPacific region by 2010 for the industrialized countries, and by 2020 for the developing 

countries. In subsequent years, various annual APEC initiatives have been undertaken to 

provide member countries with direction on how to successfully meet the long-term 

objectives initially agreed upon in Bogor, Indonesia.65

Three main developments resulted from the November 2008 annual ministerial meeting 

in Lima, Peru, and its related workshops. Ministers reaffirmed their commitment to open 

trade and investment policies in the face of the global financial crisis, implemented new 

trade and investment initiatives, and promoted greater corporate responsibility to address 

the social dimensions of globalization of the region. 

Open Trade and Investment 

During the November 2008 annual meeting, APEC Heads of State reaffirmed their 

commitment to open trade and investment policies in the face of the global financial 

crisis. In their ministerial statement, they concluded that this course of action will help 

APEC members play a central role in promoting recovery, growth, and development.66

To that end, APEC has shared information on liberalization initiatives and conducted 

workshops and seminars to build capacity and raise awareness among members in 

support of the WTO Doha Round negotiations.67 It has also continued to examine options 

and prospects for a Free Trade Area of the Asia-Pacific (FTAAP) by compiling a 

preliminary inventory of issues to be addressed as part of the preparatory process. 68

Moreover, APEC ministers recommended that member leaders support the G-20 

Washington Declaration and reaffirmed their commitment against the creation of new 

 63 APEC was established in 1989. Its 21 members are Australia; Brunei Darussalam; Canada; Chile; 

China; Hong Kong, China; Indonesia; Japan; Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; 

Peru; the Philippines; Russia; Singapore; Chinese Taipei (Taiwan); Thailand; the United States; and Vietnam. 

For more information, see APEC, “APEC at a Glance,” http://www.apec.org/apec/about_apec.html. 64 Ibid. 65 APEC, “Outcomes & Outlook 2005–06,” February 1, 2007. 66 APEC, “Joint Statement at 20th APEC Ministerial Meeting,” November 19–20, 2008. 67 APEC, “Committee on Trade and Investment: Annual Report to Ministers,” February 13, 2009. 

3-19

68 APEC, “2008 Progress Report on the APEC Regional Economic Integration Agenda,” 2008. 
3-20

 

trade and investment barriers in the next 12 months. 69 The development of a more 

diversified and sounder institutional investor base was also a stated ministerial goal in 

2008, as it aims to deepen financial sector participation, remove trade restrictions, and 

improve regulatory frameworks. 70 To demonstrate their commitment to structural reform, 

APEC ministers endorsed the Good Practice Guide on Regulatory Reform at their Lima 

ministerial meeting.71

Committee on Trade and Investment 

APEC’s Committee on Trade and Investment (CTI) accomplished four main tasks in 

2008. First, agreement was reached on model measures72 for FTAs, including customs 

administration and trade facilitation, competition policy, environment, and safeguards.73

Second, progress was made on the implementation of the Second Trade Facilitation 

Action Plan with the establishment of Key Performance Indicators and reporting 

methodologies for monitoring its implementation.74 Third, agreement was reached on a 

new APEC Investment Facilitation Action Plan (IFAP) that will assist economies in 

improving their investment environments.75 Finally, CTI members endorsed the APEC 

Digital Prosperity Checklist, which provides assistance to economies to advance the use 

of information and communications technologies as catalysts for growth and 

development.76

Corporate Social Responsibility 

Ministers exhibited renewed interest in promoting corporate social responsibility (CSR) 

during the November 2008 summit, emphasizing the social dimensions of globalization. 

Through APEC’s Business Advisory Council, APEC ministers agreed to promote CSR 

through individual government incentive programs and practices in its member countries. 

Given that CSR programs develop at different speeds and in different directions among 

APEC members, reflecting the heterogeneity of member-country business cultures and 

levels of social and economic development, it was agreed that these CSR measures will 

remain voluntary during this phase of implementation.77

69 APEC, “Outcomes & Outlook 2008-09,” November 2008. 70 APEC, “Joint Statement at 20th APEC Ministerial Meeting,” 2008. 71 APEC, “Good Practice Guide on Regulatory Reform,” August 2008. 72 Model measures provide references for member countries seeking to negotiate FTAs, and are 

intended to promote consistency in FTAs across the region. 73 APEC, “Free Trade Agreements and Regional Trading Agreements,” February 2008. 74 APEC, “APEC’s Second Trade Facilitation Action Plan,” February 2008. 75 APEC, “APEC Investment Facilitation Action Plan,” February 2008. 76 APEC, “Outcomes & Outlook 2008-09,” November 2008. 77 APEC Business Advisory Council, “Mind the Gap: Making Globalization an Opportunity for All -

Report to APEC Economic Leaders,” 2008. 
4-1

CHAPTER 4 

U.S. Free Trade Agreements 

This chapter summarizes developments related to U.S. Free Trade Agreements (FTAs) 

during 2008. It describes trends in U.S. merchandise trade with FTA partners during 

2008, the status of U.S. FTA negotiations during the year, and major North American 

Free Trade Agreement (NAFTA) activities, including NAFTA dispute settlement 

developments during the year. 

FTAs in Force During 2008 

The United States was a party to nine FTAs as of December 31, 2008.1

 These included a 

multiparty agreement with the countries of Central America and the Dominican Republic 

(U.S.-CAFTA-DR) that entered into force with respect to the Dominican Republic, El 

Salvador, Guatemala, Honduras, and Nicaragua (2006–07); the U.S.-Bahrain FTA 

(2006); the U.S.-Morocco FTA (2006); the U.S.-Australia FTA (2005); the U.S.-Chile 

FTA (2004); the U.S.-Singapore FTA (2004); the U.S.-Jordan FTA (2001); NAFTA 

(1994); and the U.S.-Israel FTA (1985).2

In 2008, total two-way merchandise trade between the United States and its FTA partners 

was $1.1 trillion, or about one-third of U.S. merchandise trade with the world. U.S. 

merchandise exports to FTA partners increased by 8.0 percent to $444.2 billion and 

accounted for 38.0 percent of total U.S. exports. U.S. imports of goods from FTA 

partners increased 4.7 percent to $625.8 billion and accounted for 29.9 percent of U.S. 

imports from the world. 

The U.S. merchandise trade deficit with its FTA partners decreased by $4.7 billion to 

$181.6 billion in 2008 (table 4.1). The U.S. deficit with its NAFTA partners was a record 

high $197.2 billion, an increase of $7.1 billion from 2007. Excluding NAFTA, the United 

States registered a trade surplus with the rest of the FTA partners of $15.6 billion, up 

from $3.9 billion in 2007. The FTA partners with which the United States recorded a 

merchandise trade surplus in 2008 were Australia, Chile, Bahrain, Singapore, Morocco, 

and the CAFTA-DR countries, while the United States continued to have merchandise 

trade deficits with Israel and Jordan. 

The value of U.S. imports entered under FTA provisions increased 5.1 percent from 

$313.9 billion in 2007 to $329.8 billion in 2008 (table 4.2). More than 60 percent of total 

imports from CAFTA-DR partners entered under FTA provisions in 2008. Similarly, 

more than 50 percent of total imports from NAFTA partners Canada and Mexico, Chile, 

and Bahrain entered under FTA provisions. On the other hand, less than 20 percent of 

total imports from Israel, Singapore, and Morocco entered under FTA provisions. Imports

 1 Since the U.S.-Singapore FTA in 2004, the modifications to the HTS required to implement each FTA 

can be found at USITC, Tariff Information Center Web site, 

http://www.usitc.gov/tata/hts/other/rel_doc/annex/index.htm. 2

 FTAs with Oman and with Costa Rica (as part of U.S.-CAFTA-DR) entered into force on January 1, 

2009. Therefore, no imports from these countries entered under FTA provisions in 2008. The United StatesPeru Trade Promotion Agreement entered into force on February 1, 2009. These agreements are described in 

more detail below. 
4-2

TABLE 4.1 U.S. merchandise trade with FTA partners, total trade, 2006–08 

2006 2007 2008

Millions of $ 

Exports: 

Israel 8,094 9,940 10,238

NAFTA 312,789 332,500 353,932

 Canada 198,226 213,119 222,424

 Mexico 114,562 119,381 131,507

Jordan 623 832 904

Singapore 21,911 23,577 25,655

Chile 6,221 7,610 11,367

Australia 16,836 17,917 20,948

Morocco 869 1,334 1,506

Bahraina 471 565 779

CAFTA-DRb 9,657 17,050 18,875

 FTA partner total 377,472 411,325 444,205

 World 929,486 1,046,358 1,169,821

FTA partner share of world (percent) 40.6 39.3 38.0

Imports: 

Israel 19,157 20,817 22,264

NAFTA 500,090 522,663 551,168

 Canada 303,034 312,505 334,840

 Mexico 197,056 210,159 216,328

Jordan 1,421 1,333 1,139

Singapore 17,750 19,080 15,718

Chile 9,551 8,969 8,182

Australia 8,244 8,633 10,535

Morocco 546 626 880

Bahraina 632 626 517

CAFTA-DRb 10,206 14,840 15,387

FTA partner total 567,598 597,588 625,790

 World 1,845,053 1,942,863 2,090,483

FTA partner share of world (percent) 30.8 30.8 29.9

Balance: 

Israel -11,063 -10,877 -12,026

NAFTA -187,301 -190,163 -197,236

 Canada -104,808 -99,386 -112,415

 Mexico -82,493 -90,778 -84,821

Jordan -798 -501 -234

Singapore 4,161 4,496 9,937

Chile -3,330 -1,359 3,184

Australia 8,593 9,283 10,413

Morocco 323 708 626

Bahraina -162 -60 262

CAFTA-DRb -549 2,210 3,488

FTA partner total -190,126 -186,264 -181,586

 World -915,567 -896,505 -920,661

FTA partner share of world (percent) 20.8 20.8 19.7

Source: U.S. Department of Commerce. 

Note: Data represents U.S. bilateral trade flows (i.e., trade under FTA provisions as well as non-FTA trade) with 

FTA partners, which are listed according to the date of the FTA’s entry into force. 

a

 FTA in force for part of 2006. 

b CAFTA-DR in force for El Salvador, Guatemala, Honduras, and Nicaragua for differing parts of 2006, and 

Dominican Republic for part of 2007. 
4-3

TABLE 4.2 U.S. imports entered under FTA provisions, by FTA partner, 2006-08 

2006 2007 2008

% Change

2007–08

Millions of $ 

Israel 2,771 2,755 3,209 16.5

NAFTA 286,959 293,057 306,593 4.6

 Canada 159,796 158,984 166,077 4.5

 Mexico 127,163 134,073 140,516 4.8

Jordan 309 313 280 -10.5

Singapore 868 935 1,018 9.0

Chile 5,508 5,001 4,454 -10.9

Australia 3,248 3,155 4,356 38.1

Morocco 116 176 161 -8.5

Bahraina 47 199 288 44.5

CAFTA-DRb 3,976 8,289 9,410 13.5

 El Salvador 993 1,490 1,685 13.1

 Guatemala 561 1,286 1,635 27.2

 Honduras 2,003 2,855 3,016 5.6

 Nicaragua 418 706 816 15.6

 Dominican Republic - 1,952 2,259 15.7

 FTA partner total 303,801 313,879 329,770 5.1

 World 1,845,053 1,942,863 2,090,483 7.6

Share of total partner imports 

Israel 14.5 13.2 14.4

NAFTA 57.4 56.1 55.6

Jordan 21.7 23.5 24.6

Singapore 4.9 4.9 6.5

Chile 57.7 55.8 54.4

Australia 39.4 36.5 41.4

Morocco 21.2 28.2 18.3

Bahraina 7.4 31.8 55.7

CAFTA-DRb 39.0 55.9 61.2

 FTA partner total share of world 16.5 16.2 15.8

Source: U.S. Department of Commerce. 

a

 FTA in force for part of 2006. 

b

 CAFTA-DR in force for El Salvador, Guatemala, Honduras, and Nicaragua during different parts of 2006. Includes 

the Dominican Republic beginning in 2007. 

entered under FTA provisions accounted for 15.8 percent of total U.S. imports in 2008, a 

decrease from 16.2 percent in 2007. 

FTA Developments During 2008 

Costa Rica was the final party to the U.S.-CAFTA-DR to implement the agreement. On 

February 27, 2008, the USTR announced that the six current CAFTA-DR countries 

would grant Costa Rica an extension until October 1, 2008, to complete its implementing 
4-4

 

process.3 Costa Rica was subsequently granted another extension, until January 1, 2009, 

to complete its implementing process.4 Costa Rica completed the implementation process 

on November 11, 2008,5 and on December 23, 2008, the President issued a proclamation 

implementing the U.S.-CAFTA-DR for Costa Rica effective January 1, 2009. 6

 Other 

U.S.-CAFTA-DR developments are described below. 

The United States and Oman signed an FTA in January 2006 but the agreement did not 

enter into force immediately. On December 29, 2008, the President issued a proclamation 

to implement the U.S.-Oman FTA effective January 1, 2009.7

 The agreement was part of 

President Bush’s larger Middle East Free Trade Area initiative, which also includes FTAs 

with Jordan, Israel, Morocco, and Bahrain.8 Implementing legislation for the agreement 

was passed by Congress and signed by the President in 2006.9

On September 22, 2008, the USTR notified Congress of the Administration’s intention to 

begin negotiations for an FTA with the members of the Trans-Pacific Strategic Economic 

Partnership (TPP).10 Current members of the TPP include Brunei Darussalam, Chile, New 

Zealand, and Singapore. With the exception of the chapters on services and investment, 

TPP entered into force in 2006.11 On December 30, 2008, the USTR notified Congress of 

the Administration’s intention to add Australia, Vietnam, and Peru (once the U.S.-Peru 

TPA enters into force, which occurred February 1, 2009) to the TPP Agreement 

negotiations.12

The status of many pending FTAs remained unchanged throughout 2008. Although the 

President signed implementing legislation for the U.S.-Peru TPA on December 14, 2007, 

because Peru had not taken all steps necessary for entry into force, the President did not 

issue a proclamation implementing the U.S.-Peru TPA during 2008. The FTAs with 

Colombia, Panama, and Korea,13 which were signed by both parties in previous years, 

were all awaiting congressional approval as of the end of 2008. The United States held 

some negotiations with Malaysia in early 2008. There were no changes in the status of 

other previously initiated FTA negotiations with Ecuador, the South African Customs 

Union, Thailand, and the United Arab Emirates, or countries involved with the Free 

Trade Area of the Americas. The status of U.S. FTA negotiations during 2008 is shown 

in table 4.3. 

3

 In a national referendum held on October 7, 2007, the citizens of Costa Rica voted to join U.S.-

CAFTA-DR. However, the Costa Rican government did not complete the necessary implementing legislation 

during the year. U.S.-CAFTA-DR establishes a 2-year period for signatory countries to join the agreement 

after it first takes effect. U.S.-CAFTA-DR first took effect on March 1, 2006, and therefore the 2-year period 

for all parties to join the agreement was to end on March 1, 2008. USTR, “USTR Announces Agreement on 

Extension of Time for Costa Rica to Join the CAFTA-DR,” February 27, 2008. 4

 USTR, “USTR Announces Agreement on Extension of Time for Costa Rica to Join the CAFTA-DR,” 

October 1, 2008. 5

 Ibid. 

6

 73 Fed. Reg. 18139 (April 2, 2008) 

7 73 Fed. Reg. 80289 (December 31, 2008). 

8 USTR, “United States to Begin Free Trade Negotiations This Week with the United Arab Emirates 

and Oman,” March 8, 2005. 9

 USTR, “Statement of U.S. Trade Representative Susan C. Schwab Regarding Entry into Force of the 

U.S.-Oman Free Trade Agreement,” December 29, 2008. 10 USTR, Letter from Susan C. Schwab to the Honorable Nancy Pelosi, Speaker, U.S. House of 

Representatives, September 22, 2008. 11 USTR, 2009 Trade Policy Agenda, 2009, 127. 

12 USTR, Letter from Susan C. Schwab to the Honorable Nancy Pelosi, Speaker, U.S. House of 

Representatives, December 30, 2008. 13 For a description of developments with respect to the U.S.-Korea FTA, see the section on Korea in 

chap. 5 of this report. 
4-5

TABLE 4.3 Status of U.S. FTA negotiations during 2008 

FTA partner(s) 

Negotiations 

launched 

Negotiations 

concluded 

Agreement 

signed by parties 

Date of entry 

into force 

Central America and the Dominican Republic: 

 El Salvador Jan. 8, 2003 Dec. 17, 2003 May 28, 2004 Mar. 1, 2006 

 Honduras and Nicaragua Jan. 8, 2003 Dec. 17, 2003 May 28, 2004 Apr. 1, 2006 

 Guatemala Jan. 8, 2003 Dec. 17, 2003 May 28, 2004 July 1, 2006 

 Dominican Republic Jan. 14, 2003 Mar. 15, 2004 Aug. 5, 2004 Mar. 1, 2007 

 Costa Rica Jan. 8, 2003 Jan. 25, 2004 May 28, 2004 (

a

) 

Oman Mar. 12, 2005 Oct. 3, 2005 Jan. 19, 2006 (

a

) 

Peru TPA May 18, 2004 Dec. 7, 2005 Apr. 12, 2006 (

b

) 

Colombia TPA May 18, 2004 Feb. 27, 2006 Nov. 22, 2006 - 

Panama TPA Apr. 26, 2004 Dec. 19, 2006 June 28, 2007 - 

Korea Feb. 2, 2006 Apr. 1, 2007 June 30, 2007 - 

Free Trade of the Americas (FTAA)c Apr. 18, 1998 (

d

) - - 

South African Customs Union (Botswana, Lesotho, 

Namibia, South Africa, and Swaziland) June 2, 2003 (

e

) - - 

Ecuador May 18, 2004 (

e

) - - 

Thailand June 28, 2004 (

e

) - - 

United Arab Emirates Mar. 12, 2005 (

e

) - - 

Malaysia Mar. 8, 2006 (

f

) - - 

Trans-Pacific Strategic Economic Partnership 

(Australia, Brunei Darussalam, Chile, New 

Zealand, Peru, Singapore, and Vietnam) (

g

) - - - 

Source: USTR, various press releases, http://www.ustr.gov. 

 a

 January 1, 2009. 

 b

 February 1, 2009. 

 c

 Other negotiating parties to the FTAA are: Antigua and Barbuda, Argentina, The Bahamas, Barbados, Belize, Bolivia, 

Brazil, Canada, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, 

Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, St. Lucia, St. Kitts and Nevis, St. Vincent and 

the Grenadines, Suriname, Trinidad and Tobago, Uruguay, and Venezuela. 

 d No negotiations since 2005. 

 e

 No negotiations since 2006. 

 f

 Negotiations held during 2008. 

 g

 The United States announced its intention to launch negotiations for an FTA with the Trans-Pacific Strategic Economic 

Partnership countries on September 22, 2008. 

Since July 2007, the President has remained without Trade Promotion Authority, the 

statutory authority to negotiate trade agreements that the Congress can approve or 

disapprove but cannot amend.14

U.S.-Colombia TPA 

On April 7, 2007, the President transmitted implementing legislation (H.R. 5724) to 

Congress for its approval of the U.S.-Colombia TPA. 15 The U.S.-Colombia TPA, 

covered by the previous Trade Promotion Authority, required Congress to take an up-ordown vote within 90 legislative work days of submission by the President.16 On April 

10, 2008, the House approved resolution (H.Res. 1092) removing the 90 day requirement 

for a Congressional vote.17 The U.S.-Colombia TPA was not voted on before the end of 

the Congressional session in December 2008 18

.

 14 The Trade Act of 2002 (title XXII of the Trade Act of 2002) was enacted on August 2, 2002. 15 73 Fed. Reg. 72677 (November 28, 2008). 

16 USTR, “Schwab Statement on Colombia Agreement Being Sent to Congress,” April 7, 2008.

 17 USTR, “Statement from Ambassador Susan C. Schwab on the House vote to deny the Colombia 

 Free Trade Agreement,” April 10, 2008. 

 18 USTR, “2009 National Trade Estimate Report,” 129. 
4-6

 

U.S.-Israel FTA 

The U.S.-Israel FTA, which initially took effect in 1985, was intended to apply to trade in 

all products between the two nations. 19 However, the two countries held differing 

interpretations as to the meaning of certain rights and obligations related to agricultural 

products under the FTA.20 In 1996, the United States and Israel signed the Agreement on 

Trade in Agricultural Products (ATAP), which was an adjunct to the U.S.-Israel FTA. 

The agreement expired and then was subsequently renewed in 2004 and was scheduled 

for expiration on December 31, 2008.21 On December 10, 2008, the United States and 

Israel agreed to extend the ATAP for one year through December 31, 2009, in order to 

give the two governments time to conclude an agreement to replace the 2004 agreement. 22

U.S.-CAFTA-DR 

On December 23, 2008, the President issued a proclamation to implement the U.S.-

CAFTA-DR for Costa Rica as of January 1, 2009. 23 Costa Rica was the last of the 

signatory countries to implement the U.S.-CAFTA-DR. In November 2008, the Costa 

Rican legislature voted to implement the U.S.-CAFTA-DR after voters gave their assent 

in a national referendum in October 2007. Implementing legislation for the agreement 

was passed by Congress and signed by the President in 2005.24

On August 15, 2008, the United States implemented two new textile provisions in the 

U.S.-CAFTA-DR designed to promote regional production and create new opportunities 

for the use of U.S. fabric and yarn in apparel production in the region.25 These provisions 

modified certain rules of origin pertaining to the U.S.-CAFTA-DR to: (1) allow a limited 

quantity of woven apparel containing Mexican or Canadian inputs to enter the United 

States duty-free; and (2) include a pocketing amendment requiring that for apparel items 

containing at least one pocket, the pocket bag fabric must be formed and finished in the 

territory of one or more of the U.S.-CAFTA-DR countries using yarn wholly formed in 

the territory of one or more of the U.S.-CAFTA-DR parties before the apparel can qualify 

as an originating good, and therefore, duty-free treatment under the U.S.-CAFTA-DR.26

On October 16, 2008, the President signed Public Law 110-436, which amended Title IV 

of the U.S.-CAFTA-DR Act to establish the Earned Import Allowance Program (EIAP) 

for the Dominican Republic.27 This program will allow producers that purchase a certain 

quantity of qualifying U.S. fabric for the manufacture of certain pants and bottoms of 

cotton (excluding denim) in the Dominican Republic to receive a credit that can be used 

to ship a certain quantity of eligible apparel using third-country fabrics from the 

19 USTR, “2004 U.S.-Israel Agricultural Agreement,” July 27, 2004. 20 USTR, “2009 National Trade Estimate Report,” 259. 

21 72 Fed. Reg. 58688 (October 16, 2007). 

22 74 Fed. Reg. 611 (January 7, 2009). 

23 73 Fed. Reg. 18139 (April 2, 2008). 

24 USTR, “Statement of USTR Rob Portman on Signing of U.S.-Central American-Dominican 

Republic Free Trade Agreement,” August 2, 2005. 25 USTR, “Schwab Announces Implementation of Two CAFTA-DR Textile Provisions,” July 22, 2008. 26 Ibid. 

27 Public Law 110-436, an Act to extend the Andean Trade Preference Act, and for other purposes. The 

amendments to the U.S.-CAFTA-DR Implementation Act are set out in section 2 of Public Law 110-436. 
4-7

Dominican Republic to the United States duty-free (i.e., for every 2 square meter 

equivalents (SMEs) of qualifying U.S. fabric purchased for apparel production by 

producers in the Dominican Republic, one SME credit is received that can be used in the 

manufacture of apparel using non-qualifying fabric). The EIAP entered into effect on 

December 1, 2008.28 The U.S. International Trade Commission will conduct an annual 

review of the program and evaluate its effectiveness in reports to be submitted to the 

House Committee on Ways and Means and the Senate Committee on Finance.29

On April 25, 2008, the Committee for the Implementation of Textile Agreements (CITA) 

announced its decision to apply a safeguard on U.S. imports of cotton socks from 

Honduras.30 Honduras has been the second largest supplier of socks to the United States 

for the past several years. Pursuant to the provisions of the U.S.-CAFTA-DR, the United 

States applied a 5 percent tariff to U.S. imports of Honduran socks from July 1 to 

December 31, 2008. CITA took this action to give U.S. sock producers an opportunity to 

adjust to increased import competition from CAFTA-DR partners.31

North American Free Trade Agreement32

NAFTA, a free trade agreement between the United States, Canada, and Mexico, entered 

into force on January 1, 1994. All of the agreement’s provisions were fully implemented 

by January 1, 2008, with the exception of the NAFTA cross-border trucking provisions.33 

In 2008, total two-way (exports plus imports) U.S. merchandise trade with NAFTA 

partners increased by 5.8 percent over 2007, with U.S.-Canada merchandise trade 

amounting to $557.3 billion and U.S.-Mexico merchandise trade totaling $347.8 billion 

(table 4.4). In 2008, the U.S. merchandise trade deficit with NAFTA partners increased 

by 3.7 percent to $197.2 billion from $190.2 billion in the previous year. 

 28 73 Fed. Reg. 72677 (November 28, 2008). 

29 74 Fed. Reg. 19592 (April 29, 2009). 

30 USDOC International Trade Administration, “Administration to Apply Temporary Safeguard on 

Cotton Socks from Honduras,” April 25, 2008. 31 On January 18, 2008, as provided for under Article 3.23 of U.S.-CAFTA-DR, CITA formally 

advised Honduras of its intent to apply a textile safeguard measure on imports of Honduras-origin cotton 

socks because of the substantial growth (99 percent) of these imports from Honduras in the first 11 months of 

2007 over the previous year. USDOC, International Trade Administration, “Administration Announces 

Intent to Apply Safeguard on Cotton Socks from Honduras,” News release, January 18, 2008. 32 U.S. bilateral trade relations with Canada and Mexico are described in chap. 5 of this report. 33 See chap. 5 for a discussion of NAFTA’s cross-border trucking provisions in the section on Mexico. 

Regarding the agreement’s trade provisions, NAFTA’s last remaining restrictions on U.S.-Mexico trade were 

removed on January 1, 2008. These included restrictions on U.S. exports to Mexico of corn, dry edible beans, 

nonfat dry milk, and high fructose corn syrup, as well as on U.S. imports from Mexico of sugar and certain 

horticultural products. U.S.-Canada agricultural restrictions were removed before January 1, 1998, under the 

provisions of the U.S.-Canada Free Trade Agreement (CFTA), which was incorporated into NAFTA in 1994. 

USDA, FAS, “North American Free Trade Agreement (NAFTA),” Fact Sheet, January 2008; USDA, 

“Statement by Acting Agriculture Secretary Chuck Conner on the Full Implementation of the North America 

Free Trade Agreement (NAFTA) on Jan. 2, 2008”; and USTR, 2009 Trade Policy Agenda, 2009, 121.
4-8

TABLE 4.4 U.S. merchandise trade with NAFTA partners, 2006-08 

Year NAFTA partner 

U.S. 

Exports U.S. Imports Trade Balance 

Two-way trade 

(exports plus imports) 

Billions of $ 

2008 Canada 222.4 334.8 -112.4 557.3 

Mexico 131.5 216.3 -84.8 347.8 

Canada and Mexico 353.9 551.2 -197.2 905.1 

2007 Canada 213.1 312.5 -99.4 525.6 

Mexico 119.4 210.2 -90.8 329.5 

Canada and Mexico 332.5 522.7 -190.2 855.2 

2006 Canada 198.2 303.0 -104.8 501.3 

Mexico 114.6 197.1 -82.5 311.6 

 Canada and Mexico 312.8 500.1 -187.3 812.9 

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

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

The following sections describe the major activities of the NAFTA Free Trade 

Commission (FTC), the Commission for Labor Cooperation (CLC), the Commission for 

Environmental Cooperation (CEC), and dispute settlement activities under NAFTA 

chapters 11 and 19 during 2008. 

Free Trade Commission 

NAFTA’s central oversight body is the FTC. It is chaired jointly by trade representatives 

from the three member countries. 34 The FTC is responsible for overseeing the 

implementation of NAFTA, as well as for its dispute settlement provisions. 

At its most recent annual meeting, in August 2007, in Vancouver, Canada, the FTC 

agreed to develop a work plan to enhance North American competitiveness. 35 The 

trilateral plan is expected to address key issues that impact NAFTA’s trade and identify 

the most effective means to facilitate it.36 In February 2008, deputy ministers from the 

United States, Canada, and Mexico met in Monterrey, Mexico, to discuss progress on the 

trilateral work plan.37

Commission for Labor Cooperation 

The CLC, comprised of a ministerial council and an administrative secretariat, was 

established under the North American Agreement on Labor Cooperation (NAALC), a 

supplemental agreement to NAFTA that aims to promote effective enforcement of 

domestic labor laws and foster transparency in their administration. The CLC is 

responsible for the implementation of the NAALC. Each NAFTA partner has established 

a National Administrative Office (NAO) within its labor ministry to serve as the contact 

point with the other parties and the Secretariat, to provide publicly available information 

to the Secretariat and the other parties, and to provide for the submission and review of 

 34 The representatives are the U.S. Trade Representative, the Canadian Minister for International Trade, 

and the Mexican Secretary of Economy. 35 USTR, “Joint Statement on 2007 NAFTA Commission Meeting,” August 14, 2007. 36 The plan and the FTC meetings’ goals are described in USITC, The Year in Trade 2007, 4-8. 37 USTR, 2009 Trade Policy Agenda, 2009, 121. 
4-9

program. 

 

public communications on labor law matters.38 In the United States, that office is the 

Division of Trade Agreement Administration and Technical Cooperation (TAATC).

39

The NAOs and the Secretariat also carry out the Ministerial Council’s Cooperative 

Activities 

On April 24, 2008, the NAALC labor ministers held their Eighth Regular Session of the 

Ministerial Council. 40 The ministers established priorities for the NAALC and the 

Secretariat, including addressing the challenges and opportunities for youth employment, 

improving mine safety, and protecting freedom of association. 41 The ministers also 

signed a joint declaration to cooperate on resolving issues raised in a public 

communication regarding freedom of association, the protection of the right to organize, 

and the right to bargain collectively. 42 In December 2008, as agreed in the Joint 

Declaration, the three countries held a government-to-government session in Puebla, 

Mexico; it was agreed that federal and state officials are to share and build upon the 

information gathered through that government-to-government session. 

The NAALC also provides for the review of public submissions related to the labor laws 

of the NAFTA countries.43 In April 2008, one new submission on labor matters was filed 

with the Canadian NAO under the NAALC. 44 The submission alleged violation of 

collective bargaining and other labor rights in North Carolina. In the same year, the U.S. 

NAO addressed a related submission, filed in Mexico in 2006, concerning the collective 

bargaining rights of public sector workers in North Carolina. With respect to this 

submission, the U.S. NAO provided responses and information to the Mexican NAO on 

the application of federal and state laws in North Carolina.45

In December 2008, as part of its Cooperative Activities program and as instructed by the 

Council of Ministers, the NAALC Secretariat hosted a seminar on youth employment in 

Mexico City, Mexico.46

Commission for Environmental Cooperation 

The CEC was established under the North American Agreement on Environmental 

Cooperation (NAAEC), a supplemental agreement to NAFTA designed to ensure that 

trade liberalization and efforts to protect the environment are mutually supportive. The 

CEC oversees the mandate of the NAAEC and is composed of (1) the Council—the 

governing body of the CEC—made up of the environmental ministers from the United 

38 CLC, “The National Administrative Offices.” 39 The TAATC, formerly the Office of Trade Agreement Implementation (OTAI), is located in the U.S. 

Department of Labor (USDOL), Bureau of International Labor Affairs (ILAB), Office of Trade and Labor 

Affairs (OTLA). USDOL, OTLA, “Trade Agreement Administration and Technical Cooperation.” 40 The Ministerial Council includes the Secretary of Labor of the United States, the Minister of Labor of 

Canada, and the Secretary of Labor and Social Welfare of Mexico. Secretariat of the Commission for Labor 

Cooperation, “Puebla Meeting”; USTR, 2009 Trade Policy Agenda, 2009, 121. 41 Ibid. 42 Ibid. 43 Information on the submissions and the status of the submissions under NAALC is available in 

USDOL, ILAB, “Status of Submissions.” 44 USTR, 2009 Trade Policy Agenda, 2009, 121. 45 Ibid. 46 CLC, Cooperative Activities, “Youth Employment Seminar”; USTR, 2009 Trade Policy Agenda, 

2009, 121. 
4-10

 

States, Canada, and Mexico;47 (2) the Joint Public Advisory Committee, made up of five 

private citizens from each of the NAFTA parties; and (3) the Secretariat, located in 

Montreal, Canada, composed of professional staff that implements initiatives and 

conducts research on topics pertaining to the North American environment, 

environmental law, and standards, and processes citizen submissions on enforcement 

matters.48

Articles 14 and 15 of the NAAEC provide citizens and nongovernmental organizations 

with a mechanism to aid in enforcing environmental laws in the NAFTA countries. 

Article 14 governs alleged violations submitted for review by the CEC. It sets forth 

specific guidelines regarding criteria for submissions and parties that can file complaints. 

Article 15 outlines the Secretariat’s obligations in considering the submissions and 

publishing findings in the factual record.49 At the end of 2008, 10 files remained active 

under article 14, one of which had been submitted in 2008 (table 4.5). During 2008, there 

were 10 active files based on citizen submissions under article 15; two involved Canada, 

seven involved Mexico, and one involved the United States (table 4.6). In 2008, the CEC 

publicly released two final factual records for submissions first filed in 2003, one with 

respect to Canada and another with respect to Mexico. 

At the 2008 annual ministerial session in Ottawa, Canada, the CEC Council agreed that 

trade can provide opportunities for mutually supportive economic and environmental 

outcomes but remains a risk to the environment. To combat the threat to air quality and 

human health from the importation of non-environmentally compliant small engine 

products, the Council announced that enforcement officials will collaborate on 

intelligence to limit such trade.50 The Council also announced the establishment of Green 

Suppliers Partnerships for the auto industry of the NAFTA countries, noting that this 

program is particularly important as motor vehicles and parts account for the largest share 

of intra-regional trade. 51 Also, the Council instructed the Secretariat to prepare a 

comprehensive report on the opportunities and challenges for Green Building in North 

America to encourage improvements in energy performance in the construction and 

renovation of commercial and residential buildings throughout North America.52

In November 1993, the United States and Mexico agreed on arrangements to help border 

communities with environmental infrastructure projects to further the goals of NAFTA 

and the NAAEC. In 2008, the Border Environment Cooperation Commission (BECC) 

and the North American Development Bank (NADB) reported working with more than 

140 communities throughout the U.S.-Mexico border region to address their 

environmental infrastructure needs.53 As of December 31, 2008, the BECC had certified 

152 environmental infrastructure projects, which will cost an estimated $3.2 billion to 

build. To date, the NADB has contracted more than $870.9 million in loans and grants to 

support 118 certified projects. Of those funds, a total of $748.3 million has already been 

disbursed.54

 47 The CEC Council consists of the U.S. Environmental Protection Agency Administrator, the 

Canadian Environment Minister, and the Mexican Secretary for Environment and Natural Resources. 48 CEC, “CEC Secretariat Council”; USTR, 2009 Trade Policy Agenda, 2009, 122. 49 CEC, “A Guide to Articles 14 and 15.” 50 Fifteenth regular session of the CEC Council; CEC, “Ministerial Statement,” June 26, 2008. 51 Ibid. 52 Ibid. 53 North American Development Bank, BECC-COCF Joint Status Report, 2. 54 Ibid. 
4-11

TABLE 4.5 Active files through 2008, under article 14 of the North American Agreement on Environmental Cooperation 

Name Case First Filed Countrya Status 

Lake Chapala II SEM-03-003 May 23, 2003 Mexico The Secretariat posted a request for information relevant 

to the factual record on its Web site on September 4, 

2008. 

Coal-fired 

Power Plants 

SEM-04-005 Sept. 20, 2004 United 

States 

The Secretariat posted a request for information relevant 

to the factual record on its Web site on September 15, 

2008. 

Quebec 

Automobiles 

SEM-04-007 Nov. 3, 2004 Canada The Secretariat posted a request for information relevant 

to the factual record on its Web site on September 1, 

2006. 

Environmental 

Pollution in 

Hermosillo II 

SEM-05-003 Aug. 30, 2005 Mexico The Secretariat informed Council that the Secretariat 

considers that the submission warrants 

development of a factual record on April 4, 2007. 

Ex Hacienda 

El Hospital II 

SEM-06-003 July 17, 2006 Mexico The Secretariat informed Council that the Secretariat 

considers that the submission warrants 

development of a factual record on May 12, 2008. 

Ex Hacienda 

El Hospital III 

SEM-06-004 Sept. 22, 2006 Mexico The Secretariat informed Council that the Secretariat 

considers that the submission warrants 

development of a factual record on May 12, 2008. 

Species at Risk SEM-06-005 Oct. 10, 2006 Canada The Secretariat informed Council that the Secretariat 

considers that the submission warrants 

development of a factual record on September 10, 

2007. 

Minera San 

Xavier 

SEM-07-001 May 2, 2007 Mexico The Secretariat received the requested information from 

the concerned government party on May 6, 2008. 

Drilling 

Waste in 

Cunduacán 

SEM-07-005 July 26, 2007 Mexico The Secretariat received the requested information from 

the concerned government party on May 16, 2008. 

La 

Ciudadela 

Project 

SEM-08-001 Feb. 22, 2008 Mexico The Secretariat requested additional information from the 

concerned government party on March 10, 2008. 

Source: CEC, “Active Files.” 

 a Refers to the country against which an allegation was filed. 
4-12

TABLE 4.6 Citizen submissions on enforcement under article 15 of the North American Agreement on 

Environmental Cooperation, submissions active during 2008 

Name Case First Filed Countrya Statusb

La Ciudadela Project SEM-08-001 Feb. 22, 2008 Mexico Open 

Drilling Waste in Cunduacán SEM-07-005 July 26, 2007 Mexico Open 

Minera San Xavier SEM-07-001 May 2, 2007 Mexico Open 

Species at Risk SEM-06-005 Oct. 10, 2006 Canada Open 

Ex Hacienda El Hospital III SEM-06-004 Sept. 22, 2006 Mexico Open 

Ex Hacienda El Hospital II SEM-06-003 July 17, 2006 Mexico Open 

Environmental Pollution in Hermosillo II SEM-05-003 Aug. 30, 2005 Mexico Open 

Quebec Automobiles SEM-04-007 Nov. 3, 2004 Canada Open 

Coal-fired Power Plants SEM-04-005 Sept. 20, 2004 United States Open 

Montreal Technoparc SEM-03-005 Aug. 14, 2003 Canada June 23, 2008 

Alca-Iztapalapa II SEM-03-004 June 17, 2003 Mexico June 2, 2008 

Lake Chapala II SEM-03-003 May 23, 2003 Mexico Open 

Source: CEC, “Current Status.” 

 a Refers to the country against which an allegation was filed. 

 b Status as of December 31, 2008. Date indicates when the final factual record was publicly released. 

Dispute Settlement 

The dispute settlement provisions of NAFTA chapters 11 and 19 cover a variety of 

areas.55 Developments during 2008 are described below with respect to NAFTA chapter 

11 investor-state disputes and chapter 19 binational reviews of final determinations of 

antidumping and countervailing cases. Appendix table A.20 presents an overview of 

developments in NAFTA dispute settlement cases to which the United States was a party 

in 2008. 

Chapter 11 Dispute Settlement Developments 

Chapter 11 of NAFTA includes provisions designed to protect cross-border investors and 

facilitate the settlement of investment disputes. An investor who alleges that a NAFTA 

country has breached its investment obligations under chapter 11 may pursue arbitration 

through internationally recognized channels or remedies available in the host country’s 

domestic courts.56 A key feature of the chapter 11 arbitral provisions is the enforceability 

in domestic courts of final awards made by arbitration tribunals.57

 55 NAFTA Secretariat, “Overview of the Dispute Settlement Provisions.” 56 Internationally recognized arbitral mechanisms include: the International Centre for the Settlement of 

Investment Disputes (ICSID) at the World Bank, ICSID’s Additional Facility Rules, and the rules of the 

United Nations Commission for International Trade Law (UNCITRAL Rules). 57 NAFTA Secretariat, “Overview of the Dispute Settlement Provisions.” 
4-13

 

In 2008, there were two active chapter 11 cases filed against the United States by 

Canadian investors.58 In the same year, there were no active chapter 11 cases filed by 

U.S. investors against Canada;59 but there were three active chapter 11 cases filed by U.S. 

investors against Mexico.60

Chapter 19 Dispute Panel Reviews 

Chapter 19 of NAFTA contains a mechanism that provides for review by a binational 

panel, as an alternative to judicial review by domestic courts, of final determinations 

made by national investigating authorities in antidumping and countervailing duty cases. 

A panel may be established at the request of any involved NAFTA country.61

At the end of 2008, the NAFTA Secretariat listed 10 binational panels active under 

chapter 19 (table 4.7). Of the four binational panels formed in 2008 under chapter 19, 

three challenged U.S. agencies’ determinations on products from Mexico and one 

challenged U.S. determinations on products from Canada.62

 

58 U.S. Department of State, “NAFTA Investor–State Arbitrations: Cases Filed Against the United 

States”; Foreign Affairs and International Trade Canada, “NAFTA-Chapter 11: Cases Filed Against the 

Government of the United States of America.” 59 U.S. Department of State, “NAFTA Investor-State Arbitrations: Cases Filed Against Canada”; 

Foreign Affairs and International Trade Canada, “NAFTA-Chapter 11: Cases Filed Against the Government 

of Canada.” 60 U.S. Department of State, “NAFTA Investor-State Arbitrations: Cases Filed Against the United 

Mexican States”; Foreign Affairs and International Trade Canada, “NAFTA-Chapter 11: Cases Filed Against 

the Government of the United Mexican States.” 61 NAFTA Secretariat, “Overview of the Dispute Settlement Provisions.” 62 NAFTA Secretariat, “NAFTA-Chapter 19 Active Cases.” 
4-14

TABLE 4.7 NAFTA Chapter 19 bina onal panels, active reviews as of the end of 2008 ti

Country Case National agencies’ final determinationa Product descriptionb

Mexico

MEX-USA-2005-1904-01 SE Final Dumping Determination Carbon Steel Tubing (AD) 

MEX-USA-2006-1904-01 SE Final Dumping Determination Pork (AD) 

MEX-USA-2006-1904-02 SE Final Dumping Determination Fresh Apples (AD) 

United States

USA-CDA-2005-1904-01 USDOC Final Results of Countervailing Duty 

 Administrative Review and Rescission of 

 Certain Company-Specific Reviews 

Softwood Lumber (CVD & 

Rescission) 

 

USA-CDA-2008-1904-02 USDOC Antidumping Administrative Review Carbon and Alloy Steel Wire Rod 

(AD) 

USA-MEX-2007-1904-01 USDOC Antidumping Administrative Review Stainless Steel Sheet and Strip 

in Coils (AD) 

USA-MEX-2007-1904-03 USITC Final Determination of Antidumping 

 Duty Review Welded Pipe (AD) 

 

USA-MEX-2008-1904-01 USDOC Antidumping Administrative Review Stainless Steel Sheet and Strip 

 in Coils (AD) 

USA-MEX-2008-1904-03 USDOC Final Antidumping Determination Light-Walled Rectangular Pipe 

and Tube (AD) 

USA-MEX-2008-1904-04 USITC Final Injury Determination Light-Walled Rectangular Pipe 

and Tube from China, Korea, 

and Mexico (IN) 

Source: NAFTA Secretariat, “Status Report of Panel Proceedings.”

 a

 In Canada, final dumping and subsidy determinations are made by Canada Border Services Agency, and 

injury determinations are made by the Canadian International Trade Tribunal. In Mexico, all determinations are made 

by the Secretaría de Economía. In the United States, dumping and subsidy determinations are made by the U.S. 

Department of Commerce (USDOC), and injury determinations are made by the USITC. NAFTA Secretariat, 

“Overview of the Dispute Settlement Provisions.” 

 b The abbreviations indicated in the title of the reports represent the following: AD, Antidumping Duty; CVD, 

Countervailing Duty; IN, Injury; AR, Administrative Review; and ECC, Extraordinary Challenge Committee. 
CHAPTER 5 

U.S. Relations with Major Trading Partners 

This chapter reviews U.S. bilateral trade relations with nine selected trading partners 

during 2008: the European Union (EU), Canada, China, Mexico, Japan, Korea, Taiwan, 

Brazil, and India (ordered by value of merchandise trade). 

European Union 

The EU1

 as a unit is the largest two-way (exports and imports) U.S. trading partner in 

terms of both goods and services. U.S. merchandise trade with the EU increased 6.3 

percent to $614.9 billion in 2008, accounting for 18.9 percent of total U.S. trade. For 

the third year in a row, the U.S. merchandise trade deficit with the EU declined. In 

2008, the deficit declined by $13.5 billion to $112.5 billion (figure 5.1), matching the 

U.S. trade deficit with Canada. The United States registered a trade surplus in services 

of $58.0 billion with the EU in 2008, up $11.9 billion over 2007 (figure 5.2). The EU 

accounted for 37.4 percent of U.S. trade in services in 2008.2

 

U.S. merchandise exports to the EU rose 11.0 percent to $251 billion in 2008. Leading 

U.S. exports included certain medicaments, petroleum products, aircraft and parts, 

blood fractions (e.g., antiserum), and passenger cars. U.S. exports of petroleum 

Figure 5.1 U.S. merchandise trade with the EU, 2004-08 Figure 5.2 U.S. private services trade with the EU, 2004-08a 

-200

-100

0

100

200

300

400

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

0

50

100

150

200

250

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

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

 a

 Data for 2008 are preliminary. 

 1

 The 27 members of the EU in 2008 were Austria, Belgium, Bulgaria, Cyprus, Czech Republic, 

Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, 

Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, 

and the United Kingdom. 

5-1

2

 The United Kingdom was the largest single-country U.S. trading partner in services in 2008. 
5-2

 

products rose particularly quickly, more than tripling to $9 billion in 2008, reflecting 

increases in both the price of oil and the quantity exported. The value of most other 

major exports also increased. 

U.S. merchandise imports from the EU increased 3.3 percent in 2008 to $364 billion. 

Because of the importance of intra-industry trade in the bilateral relationship, the 

composition of U.S. imports from the EU was similar to the composition of U.S. 

exports. Leading U.S. imports were certain medicaments, petroleum products, 

passenger cars, nucleic acids and their salts, and airplanes and parts. Petroleum 

products increased the fastest among top U.S. imports—by over 20 percent—reflecting 

primarily the increase in the price of petroleum. U.S.-EU merchandise trade data are 

shown in appendix tables A.21 through A.23. 

The Transatlantic Economic Council (TEC), established in 2007, addressed a number 

of bilateral trade issues in 2008, which are discussed below. There were also 

developments in several WTO dispute settlement cases involving the United States and 

EU in 2008 (see appendix table A.19). In particular, the United States requested dispute 

settlement consultations with the EU regarding its tariff treatment of certain 

information technology products that appear to violate EU commitments under the 

International Technology Agreement. WTO dispute settlement panel reports and 

Appellate Body reports were issued in two cases: the U.S. case against the EU banana 

import regime and the EU case addressing continued U.S. retaliatory duties related to 

the earlier U.S. case on the EU meat hormone ban. 3

 Some long-running disputes 

continued, including two cases involving alleged subsidies for large civil aircraft,4

 in 

which there were delays in the issuance of panel reports, and the U.S. case against EU 

marketing and approval of biotechnology products. Major developments during 2008 

are described in the WTO dispute settlement section of chapter 3. 

Transatlantic Economic Council 

The TEC is a cabinet-level organization created at the U.S.-EU Summit in April 2007 

to oversee and guide efforts to lower barriers to trade and investment between the 

United States and the EU. In 2008, the TEC met in May and December to improve 

regulatory cooperation and address certain priority issues (“lighthouse projects”) aimed 

at advancing transatlantic economic integration, including protection of intellectual 

property rights (IPR), secure trade, investment, and financial markets. The TEC also 

addressed two issues of U.S. concern: (1) the EU ban on imports of U.S. poultry meat 

treated with pathogen reduction substances; and (2) implementation of the EU 

chemicals regulation REACH (Registration, Evaluation, and Authorization of 

Chemicals). 

3

 With respect to the case on continued U.S. retaliatory duties in the EU hormones dispute, the United 

States agreed not to impose new duties on EU products after the United States and EU signed a Memorandum 

of Understanding on May 13, 2009. This case is also described in the Section 301 part of chap. 2 and in the 

WTO dispute settlement part of chap. 3. 4

 One case was brought by the United States against the EU and one case was brought by the EU 

against the United States. 
5-3

 

At the TEC meeting in December 2008, participants noted that the TEC had made 

progress towards strengthening transatlantic economic integration by focusing on three 

areas: (1) ensuring coordination and, where appropriate, development of compatible 

regulatory approaches generally, as well as in the development and application of 

specific regulations; (2) resolving specific bilateral issues; and (3) advancing common 

interests and addressing common challenges involving third countries.5 With respect to 

IPR, the TEC reported progress on joint IPR enforcement efforts, including improved 

information sharing about key third countries including China and Russia; negotiation 

of an Anti-Counterfeiting Trade Agreement with other trading partners; and advancing 

global patent harmonization.6 The TEC also reported progress on aligning U.S. and EU 

policies on accounting standards and automobile standards, and on strengthening the 

physical security of the supply chain in bilateral trade by agreeing to establish mutual 

recognition of customs security programs in 2009.7 

At the annual U.S.-EU Summit in June 2008, the TEC issued a statement supporting an 

open global investment environment and reaffirming the U.S. and EU commitment to 

promote open investment policies at home and abroad.8

 At the December 2008 TEC 

meeting, U.S. and EU officials agreed to “identify issues of concern with respect to 

bilateral investment measures and to develop lists of priority third-country investment 

barriers.”9

 

Regulatory Cooperation 

The U.S.-EU High-Level Regulatory Cooperation Forum, established at the 2005 U.S.-

EU Summit, met twice in 2008 in conjunction with the semiannual TEC meetings. 

During 2008, the Forum reported progress to the TEC on a number of issues, including 

cooperation on the safety of imports in key product areas, information sharing, impact 

and risk assessment methodologies in the development of regulations, and better 

incorporation of international standards in domestic regulations. With respect to import 

product safety, the Forum submitted a report to the May TEC meeting that reviewed 

U.S. and EU product safety systems in seven areas (e.g., motor vehicles, toys, 

pharmaceuticals, cosmetics, food, electrical equipment for consumer use, and other 

nonfood consumer products) and recommended ways to improve information sharing 

on unsafe products, particularly those imported from third countries.10 Examples of 

specific 2008 developments related to the recommendations include creation of a Toy 

Safety Working Group that has focused on the safety of imported toys, and an 

agreement (with Australia) to exchange inspection data and to pilot joint inspections of 

companies manufacturing pharmaceuticals in the United States, EU, and third 

5

 Transatlantic Economic Council, “Review of Progress under the Framework for Advancing 

Transatlantic Economic Integration,” December 12, 2008, 1. 6

 Council of the European Union, “2008 EU-US Summit Declaration,” June 10, 2008, 22; Transatlantic 

Economic Council, “Review of Progress,” December 12, 2008, annex, 4. 7

 Transatlantic Economic Council, “Review of Progress,” December 12, 2008, annex, 4; White House, 

“Fact Sheet: Advancing Transatlantic Economic Integration through the Transatlantic Economic Council,” 

December 12, 2008. 8

 Council of the European Union, “2008 EU-US Summit Declaration,” June 10, 2008, annex I. 9

 Transatlantic Economic Council, “Review of Progress,” December 12, 2008, annex, 1. 10 EU-U.S. High-Level Regulatory Co-operation Forum, “Joint Progress Report to the Transatlantic 

Economic Council on the Safety of (Imported) Products,” December 12, 2008, 2. 
5-4

 

countries. (The first joint inspection was completed in 2008 in China.)11 The Forum 

also presented a joint report to the May TEC meeting that reviewed how the United 

States and EU analyze the impact of domestic regulations on international trade and 

investment,12 and listed possible ways to best ensure that future regulations take such 

effects fully into account.13 In line with the report’s conclusions, during the year both 

sides revised their respective guidance on how to conduct impact assessments. 14 

Finally, both sides discussed U.S. and EU approaches to the use of standards, including 

voluntary national and international standards, in their regulations and agreed to 

conduct and present to the TEC in 2009 a joint report on the U.S. and EU systems, 

including sector case studies.15

Poultry 

Since April 1, 1997, the EU has banned imports of U.S. poultry meat treated with 

pathogen reduction treatments (PRTs). PRTs are used to decontaminate poultry 

carcasses and are not permitted on poultry marketed in the EU. In 2002, the United 

States requested that the EU approve the use of four PRTs, including chlorine dioxide, 

but the ban remains in place.16 During 2008, lifting of the ban was a priority issue in 

the TEC, but no progress was made by the end of the year.17

REACH 

The EU’s new chemicals policy embodied in the REACH regulation entered into force 

on July 1, 2007. 18 The legislation, which aims to protect human health and the 

environment, replaces about 40 laws and covers about 30,000 existing chemicals. It 

shifted the responsibility for determining the safe use of chemicals from the EU 

member states to industry, and required EU-based manufacturers and importers of 

chemicals of at least 1 metric ton annually to preregister such chemicals with the newly 

11 Ibid., 3–5. 

12 U.S. Department of State, U.S. Mission to the EU, Brussels, “Transatlantic Regulatory Dialogue 

Addresses Regulatory Quality, Trade, Investment and Import Safety,” May 22, 2008. 13 Office of Management and Budget and the Secretariat General of the European Commission, 

“Review of the Application of EU and US Regulatory Impact Assessment Guidelines,” May 13, 2008, 2. 14 U.S.-EU High-Level Regulatory Cooperation Forum, “Report to the Transatlantic Economic 

Council,” October 15, 2008, 3. 15 Ibid., 5; Transatlantic Economic Council, “Review of Progress under the Framework for Advancing 

Transatlantic Economic Integration,” December 12, 2008, annex, 2. 16 USTR, “U.S. Files WTO Case Challenging EU Restrictions on U.S. Poultry Exports,” January 16, 

2009. 17 On January 16, 2009, the United States requested WTO dispute settlement consultations with the EU 

to resolve this issue. WTO, Dispute Settlement Body, “European Communities—Certain Measures Affecting 

Poultry Meat and Poultry Meat Products from the United States,” online summary prepared by the WTO 

Secretariat. 18 Regulation (EC) No. 1907/2006 of the European Parliament and of the Council of 18 December 2006 

concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing 

a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) 

No. 793/93 and Commission Regulation (EC) No. 1488/94 as well as Council Directive 76/769/EEC and 

Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC, O.J. (L396) 1. 
5-5

created European Chemicals Agency (ECHA) between June 1, 2008, and December 1, 

2008.19 Those companies that met the preregistration requirements must fully register 

by one of three staggered deadlines, with the largest volume and most hazardous 

chemicals subject to the earliest deadline of December 1, 2010.20 Those chemicals of 

highest concern are subject to an authorization procedure by ECHA, 21 which could 

result in restrictions or even a complete ban on their use.22 

According to the United States, REACH “appears to be overly broad and to adopt a 

particularly costly, burdensome, and complex approach that could disrupt and distort 

global trade.”23 At the May TEC meeting, the European Commission acknowledged 

the “unprecedented challenge [posed by REACH] both for European and third country 

producers” and agreed to “within its competence, undertake the necessary steps to 

ensure transparent implementation, legal certainty and nondiscriminatory trade.”24 In 

response to U.S. concerns about uncertainties regarding the treatment of chemical 

ingredients used in imported cosmetics under REACH,25 the European Commission 

also committed to ensure that U.S. exports of cosmetics and personal care products to 

the EU are not disrupted by REACH implementation.26

Canada 

In 2008, Canada was the largest single-country U.S. trading partner based on two-way 

trade, accounting for 17.1 percent of U.S. merchandise trade with the world. U.S. 

merchandise trade with Canada was $557.3 billion in 2008, 6.0 percent more than in 

2007. The U.S. trade deficit with Canada increased $13.0 billion in 2008 to $112.4 

billion, following a decline over the 2006-07 period (figure 5.3). The United States 

registered a trade surplus in services with Canada of $22.7 billion in 2008, up $4.3 

billion from 2007 (figure 5.4). Canada was the second largest single-country U.S. 

trading partner in services (exports plus imports) in 2008, following the United 

Kingdom. 

U.S. merchandise exports to Canada increased 4.4 percent to $222.4 billion in 2008 

(19.0 percent of total U.S. exports). Leading U.S. exports to Canada in 2008 included 

motor vehicles and related products as well as energy products, including petroleum, 

 19 If a company failed to meet the preregistration deadline, its chemicals are illegally on the EU market. 

European Commission, “Implementing REACH in Practice,” June 3, 2008, 4-6. 20 European Commission, Directorate General for Enterprise and Industry, “Six-month Window for 

REACH Pre-registrations,” July 1, 2008. 21 European Commission, “European Chemicals Agency ECHA—Questions and Answers,” June 3, 

2008. 22 European Commission, “Implementing REACH in Practice,” June 3, 2008, 5. 23 WTO, Committee on Technical Barriers to Trade, “Minutes of the Meeting of 1–2 July 2008,” 

September 9, 2008, 8. 24 Council of the European Union, “2008 EU-US Summit Declaration,” June 10, 2008, 21. 25 WTO, Committee on Technical Barriers to Trade, “Minutes of the Meeting of 1-2 July 2008,” 8-9. 26 Transatlantic Economic Council, “Review of Progress ,” December 12, 2008, annex 3; Commission 

Communication on the Enquiry and Registration under Regulation (EC) No. 1907/2006 (REACH) of 

Substances that were Lawfully on the Market before 1 June 2008 but which do not have Phase-in Status, O.J. 

(C317) 2. 
Figure 5.3 U.S. merchandise trade with Canada, 2004-08 Figure 5.4 U.S. private services trade with Canada, 2004-08 a 

-150

-100

-50

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

0

5

10

15

20

25

30

35

40

45

50

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

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

 a

 Data for 2008 are preliminary. 

natural gas, and electricity. The 4.4 percent increase in U.S. exports to Canada was 

lower than the 11.8 percent growth of U.S. exports to the world largely because of 

declines in U.S. exports of auto-related products to Canada. 

U.S. merchandise imports from Canada rose 7.1 percent to $334.8 billion in 2008 (16.0 

percent of total U.S. imports). Leading U.S. imports from Canada reflected much the 

same composition as U.S. exports to Canada, including petroleum, natural gas, and 

passenger vehicles. The fastest growing imports from Canada in 2008 were energy 

products, such as crude, heavy, and light petroleum; natural gas; electricity; and 

propane; with some of these products showing growth rates greater than 20 percent 

over last year as increased energy prices raised import values. U.S. imports of motor 

vehicles from Canada decreased in 2008, however, as the U.S. and Canadian 

economies slipped into recession. U.S.-Canada merchandise trade data can be found in 

appendix tables A.24 through A.26. 

U.S.-Canadian trade relations are governed in large part by the North American Free 

Trade Agreement (NAFTA), which entered into force on January 1, 1994, replacing the 

1989 bilateral U.S.-Canada Free Trade Agreement. NAFTA progressively eliminated 

tariff and nontariff barriers for bilateral trade in most agricultural and all industrial 

products that originate in the United States and Canada. In addition, NAFTA improved 

access for trade in services, established rules on investment, strengthened protection of 

intellectual property rights, and created a NAFTA dispute settlement mechanism. Since 

the implementation of NAFTA in 1994, total two-way merchandise trade between the 

United States and Canada has grown by roughly 265 percent, creating a number of new 

challenges for trade relations between the two countries. 27 Certain trade-related 

disputes between the United States and Canada are subject to NAFTA and WTO 

dispute settlement rules. Major procedural developments in active WTO and NAFTA 

dispute cases are listed in appendix tables A.19 and A.20, respectively. The following 

sections report on developments in U.S.-Canada trade relations during 2008, notably 

the U.S.-Canada Softwood Lumber Agreement. 

 

5-6

27 U.S. Department of State, “Background Note: Canada,” November 2008. 
5-7

 

Agriculture 

The U.S.-Canada Consultative Committee on Agriculture, set up under the bilateral 

1998 Record of Understanding on Agricultural Matters, met in May and November 

2008. The Committee discussed trade-related issues regarding fruits, vegetables, seeds, 

plants, livestock, as well as biotechnology matters. Much of these discussions centered 

on the trade-related aspects of sanitary and phytosanitary standards, technical 

standards, labeling, and the implementation of national regulations governing these 

issues.28

The two countries also made progress in implementing the Technical Arrangement 

Concerning Trade in Potatoes, set up in 2007 and expected to be fully in place by 

November 2009. The arrangement is expected to improve U.S. potato growers’ access 

to Canadian processors with the help of expedited import documentation, as well as to 

provide Canadian potato growers with easier entry of some specialty potatoes into the 

U.S. market.29 

Softwood Lumber Agreement 

Following expiration of the 1996 U.S.-Canada Softwood Lumber Agreement in March 

2001, the United States and Canada signed a successor agreement on trade in softwood 

lumber in October 2006. In 2007, the United States held consultations with Canada 

regarding several Canadian federal and provincial programs for softwood lumber and, 

in August 2007, requested international arbitration under the agreement to resolve 

concerns about Canada’s application of the agreement’s provisions on export volume 

caps as well as its import surge mechanism.30

The arbitration tribunal issued its decision on March 3, 2008, determining that Canada 

failed to properly adjust export quota levels for softwood lumber during the first half of 

2007.31 The tribunal reached a determination as to an appropriate remedy in February 

2009. 

On January 18, 2008, the United States also requested a second arbitration tribunal to 

consider a U.S. challenge of several provincial programs on softwood lumber. The 

United States claims these programs reduce or offset export measures fixed under the 

agreement.32 This second tribunal is expected to reach a determination in late 2009. 

28 USTR, 2009 Trade Policy Agenda, 2009, 128. 29 Ibid. 

30 USTR, 2008 Trade Policy Agenda, 2008, 124–5. 31 London Court of International Arbitration, “Case No. 7941—The United States of America, 

Claimant, v. Canada, Respondent. Award on Liability,” March 3, 2008. 32 London Court of International Arbitration, “In The LCIA—The United States of America, Claimant, 

v. Canada, Respondent—Request for Arbitration,” January 18, 2008. 
China 

In 2008, China was the United States’ second largest single-country trading partner 

based on two-way trade, and accounted for approximately 12 percent of U.S. trade with 

the world. The United States’ bilateral deficit with China, which grew by $8.3 billion to 

$270.3 billion in 2008, was higher than the U.S. deficit with any other single-country 

trading partner. The widening of the 2008 U.S. merchandise trade deficit with China 

was mostly attributable to an increase in U.S. merchandise imports (figure 5.5). The 

U.S. surplus in services with China increased $767.0 million to $6.2 billion in 2008, 

primarily driven by growth in U.S. service sector exports (figure 5.6). 

U.S. merchandise exports to China amounted to $67.2 billion in 2008, up 10.1 percent 

from 2007. China remained the third largest destination for U.S. exports in 2008, 

behind Canada and Mexico. Soybeans represented the largest U.S. export to China in 

2008, followed by computer chips, passenger airplanes, and copper and aluminum 

waste and scrap. The growth in U.S. exports to China was primarily led by soybeans, 

which grew by 77.3 percent year on year, as well as electronic processors and cotton. 

In 2008, China remained the largest single-country source of U.S. imports. In that year, 

U.S. imports from China amounted to $337.5 billion, or 4.5 percent higher than they 

were in 2007. Leading U.S. imports from China in 2008 were computers and their 

parts, wireless telephones, toys, and video games and their parts. The growth was also 

primarily led by consumer electronics, including voice over internet protocol (VOIP) 

machines, laptops, and video games and their parts. Despite the robust growth in U.S. 

imports from China in early 2008, growth slowed in the fourth quarter, owing to the 

slowdown in U.S. consumption. U.S.-China merchandise trade data are shown in 

appendix tables A.27 through A.29. 

Figure 5.5 U.S. merchandise trade with China, 2004-08 Figure 5.6 U.S. private services trade with China, 2004-08 a 

-400

-300

-200

-100

0

100

200

300

400

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

0

2

4

6

8

10

12

14

16

18

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

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

 a

 Data for 2008 are preliminary. 

5-8
5-9

 

In 2008, U.S.-China bilateral trade relations focused on intellectual property rights 

enforcement, textile and apparel trade, product safety, as well as cooperation on the 

financial sector, energy, and the environment. Also during 2008, U.S. and Chinese 

officials held bilateral discussions to address global trade imbalances and China’s 

exchange rate policy. These issues were the main focus of the September 2008 Joint 

Commission on Commerce and Trade (JCCT) and the June and December 2008 U.S.-

China Strategic Economic Dialogues (SEDs). 33

There were also developments in several WTO dispute settlement cases between the 

United States and China in 2008 (for more details, see chapter 3 and appendix table 

A.19), including:34

 • Measures Affecting Imports of Automobile Parts (DS340): The United 

 States (with the EU and Canada) claimed that China was assessing 

 duties on certain auto parts at rates significantly above bound rates. 

 The panel report was issued (July 18, 2008), and was subsequently 

 appealed by China (September 15, 2008). The Appellate Body report 

 was issued (December 15, 2008), representing the first WTO case 

 brought against China to conclude both panel and Appellate Body 

 rulings. 

 • Measures Affecting the Protection and Enforcement of Intellectual 

 Property Rights (DS362): A panel was established 

 (September 25, 2007) to examine certain measures pertaining to the 

 protection and enforcement of intellectual property rights in China. 

 Because of the complexity of the case, the panel report was delayed 

 and issued on January 26, 2009. 

 • Measures Affecting Trading Rights and Distribution Services for 

 Certain Publications and Audiovisual Entertainment Products 

 (DS363): A panel was established (November 27, 2007) and composed 

 (March 27, 2008) to review the U.S. claim that China’s regulation 

 limited the importation and distribution of products such as films, 

 home entertainment products, and publications. Due to the complexity 

 of the case, including translation issues, completion of the panel report 

 has been extended to May 2009. 

 

33 The U.S.-China Strategic Economic Dialogue was established on September 20, 2006, to create a 

forum for high-ranking officials to discuss specialized bilateral trade issues and support the JCCT and other 

bilateral diplomatic forums. For more information, see White House, “President’s Statement on the Creation 

of the U.S-China Strategic Economic Dialogue,” September 2006; U.S. Department of the Treasury, “Fact 

Sheet: Creation of the U.S. - China Strategic Economic Dialogue,” September 2006. 34 In a more recent case (DS392), filed in April 2009, China requested WTO dispute settlement 

consultations with the United States regarding U.S. measures affecting imports of poultry from China. 
5-10

 

 • Measures Affecting Financial Information Services and Foreign 

 Financial information Suppliers (DS373): The United States requested 

 WTO dispute settlement consultations with China (March 3, 2008) 

 regarding measures that limit the ability of foreign financial 

information information service providers to establish offices in China and service 

 Chinese users. China and the United States notified the WTO on 

 December 4, 2008, of a memorandum of understanding that provided a 

 mutually agreed settlement between the two parties. 

 • Definitive Antidumping and Countervailing Duties on Imports of 

 Certain Products from China (DS379): China requested consultations 

 (September 19, 2008) regarding antidumping and countervailing duties 

 imposed by the United States on a variety of its products, including 

 steel pipe, off-road tires, light-walled rectangular pipe and tube, and 

 laminated woven sacks. A panel was established on January 20, 2009. 

 • Grants, Loans and Other Incentives (DS387): The United States 

 requested consultations with China (December 19, 2008) claiming that 

 the Chinese government offers grants, loans, and other incentives to 

 exporting enterprises, which violate WTO rules prohibiting export 

 subsidies. 

Intellectual Property Rights Enforcement 

Intellectual property protection for both domestic and foreign rights-holders in China 

continued to be a high priority issue for the United States in 2008, according to the 

USTR.35 A WTO dispute settlement panel, established in September 2007 in response 

to a complaint by the United States, held proceedings in April and June 2008 to 

evaluate China’s protection and enforcement of U.S. IPR. In January 2009, the panel 

announced that it found certain aspects of China’s IPR regime to be inconsistent with 

its WTO obligations. 36 Despite China’s 2007 accession to the World Intellectual 

Property Organization (WIPO) Internet Treaties, the International Intellectual Property 

Alliance (IIPA) recommended that China remain on USTR’s priority watch list, noting 

limited progress in China’s copyright industries and increased problems with online 

and mobile piracy. The IIPA estimated 2008 losses due to copyright piracy in China to 

be $3.5 billion dollars, considerably more than any other country.37

According to the USTR, China’s legal and regulatory framework has improved since 

its accession to the WTO, but problems persist with IPR protection and enforcement.38 

Notwithstanding repeated anti-piracy campaigns and an increase in civil IPR cases in 

Chinese courts, piracy and counterfeiting remain the main IPR problems. Such IPR 

violations continued to affect goods and services in a broad range of industries, 

including business and entertainment software, information technology, music, films, 

35 USTR, 2008 Report to Congress on China’s WTO Compliance, 2008, 5. 

36 USTR, “United States Wins WTO Dispute Over Deficiencies in China’s Intellectual Property Rights 

Laws,” January 26, 2009. 37 International Intellectual Property Alliance, “2009 Special 301 Report,” February 17, 2009. In 

USTR’s 2009 Special 301 report, China remains on the priority watch list. 38 USTR, 2008 Report on China’s WTO Compliance, 2008, 72–74. 
5-11

 

pharmaceuticals, chemicals, apparel, athletic footwear, textile fabrics, electrical 

equipment, automotive parts, and industrial products, among others.39

During the 2008 JCCT and SED meetings, the United States and China agreed to 

continue regular IPR working group meetings to address China’s development of 

guidelines on IPR and standards, internet piracy challenges, and how to mitigate sales 

of counterfeit goods.40

Textile and Apparel Trade 

In 2008, China remained the largest exporter of textiles and apparel goods to the United 

States, increasing its share of total U.S. textile and apparel imports from 40.2 percent in 

2007 to 40.9 percent in 2008.41 During the year, 34 categories of textile and apparel 

products were subject to 21 quotas under the 2005 memorandum of understanding 

(MOU) between the United States and China, which established quotas on U.S. imports 

of selected textile and apparel products from China from January 1, 2006 through 

December 31, 2008.42 During 2008, quotas filled at an average rate of 66 percent, 

which represented an increase over 2007, when the average fill rate was 62 percent. In 

2008, quota fill rates ranged from 3 percent for certain man-made fiber furnishings to 

93 percent for certain hosiery.43 

In 2008, both the EU and the United States conducted programs to monitor imports of 

Chinese textiles and apparel upon the expiration of quotas. Throughout 2008, the EU 

and China jointly monitored Chinese exports of textiles and apparel to the EU, with a 

goal of avoiding market disruptions.44 In October 2008, the United States established a 

similar program to monitor U.S. imports of textiles and apparel constrained by quotas, 

after concerns that “a market-disrupting surge in textile and apparel imports from China 

could occur after the MOU expires.” 45 According to the new series of monitoring 

reports produced by the Commission, the share held by China in U.S. imports of 

products constrained by quotas during 2005-08 ranged from 3 percent (for certain manmade fiber furnishings) to 90 percent (for silk trousers and shorts) of the total U.S. 

import market for these products.46

 

39 Ibid. 

40 U.S. Department of Commerce, “19th U.S.-China Joint Commission on Commerce and Trade 

Outcomes,” September 16, 2008. 41 In terms of square meter equivalents (SMEs). 

42 For the purposes of the MOU, several categories of textile and apparel products (using the U.S. 

Textile and Apparel Category System) were grouped together and subject to the same quota. For example, for 

the period January 1, 2008 through December 31, 2008, products in categories 340 (men’s and boys’ cotton 

woven shirts) and 640 (men’s and boys’ man-made fiber woven shirts) are subject to the same restraint level 

of 8,724,590 dozen. “Memorandum of Understanding Between the Governments of the United States of 

America and the People’s Republic of China Concerning Trade in Textile and Apparel Products,” November 

8, 2005. 43 U.S. Customs and Border Protection, 

http://www.cbp.gov/xp/cgov/import/textiles_and_quotas/textile_status_report/archived/2007_year_rpt

(accessed February 16, 2009). 44 For more information, see USITC, Operation of the Trade Agreements Program, 2007, 2–22. 45 73 Fed. Reg. 65882-83 (November 5, 2008). 

46 USITC, Textile and Apparel Imports from China: Statistical Reports, 2009. 
5-12

 

Product Safety 

During the 2008 Strategic Economic Dialogues, the United States and China agreed on 

several initiatives aimed at improving product quality and food safety. These initiatives 

included continued dialogue on China’s export-product quality and food-safety control 

system; strengthened cooperation on inspection, quarantine, and safety of designated 

products;47 and implementation of the Food Safety Information Notification MOU to 

effectively protect consumers of both countries.48 In addition to these initiatives, the 

United States and China signed: 

 • A joint progress statement on the Five-Year Work Plan under the 

 Agreement on the Safety of Food and Feed. The U.S. Department of 

 Health and Human Services (HHS) and China’s General 

 Administration of Quality Supervision, Inspection, and Quarantine 

 (AQSIQ) were signatories to this statement;49 

 • A memorandum of understanding on the safety of drugs and medical 

 devices. Both the U.S. Food and Drug Administration and China’s 

 State Food and Drug Administration were signatories to this 

agreemeagreement; and 

 • A memorandum of understanding on Collaboration in Traditional 

 Chinese Medicine.50

 

In addition to these measures, the United States and China agreed to review the 

implementation of existing bilateral agreements, identify gaps in performance, and 

prepare a corresponding progress report in advance of the next SED.51 

Financial Sector Cooperation 

During the 2008 SED meetings, the United States and China agreed to increase 

financial sector liberalization in China by: 

 • Allowing non-deposit taking foreign financial institutions to provide 

 consumers with finance; 

 • Letting qualified foreign companies list on China’s stock exchanges 

 through direct share issuance or depository receipts; 

47 U.S. Department of the Treasury, “Joint U.S.–China Fact Sheet: Fourth U.S.–China Strategic 

Economic Dialogue,” June 2008. 48 U.S. Department of the Treasury, “Joint U.S.–China Fact Sheet: Fifth U.S.–China Strategic 

Economic Dialogue,” December 2008. 49 U.S. Department for Health and Human Services, “United States and China Outline Progress on 

Agreement on Food and Feed Safety,” December 11, 2007. 50 U.S. Department of the Treasury, “Joint Fact Sheet: Fourth Economic Dialogue,” June 2008. 51 U.S. Department of the Treasury, “Joint Fact Sheet: Fifth Economic Dialogue,” December 2008. 
5-13

 

 • Easing qualifications on foreign incorporated banks to issue 

subordinated subordinated Chinese RMB-denominated bonds;52 

 • Permitting foreign incorporated banks to trade bonds in the Chinese 

 interbank market; and 

 • Allowing foreign banks to increase guarantees and/or foreign currency 

 loans from overseas affiliates.53

Also, in response to a March 2008 complaint that the United States filed against China 

under the WTO Dispute Settlement Understanding, which challenged restrictions China 

placed on foreign suppliers of financial information, the United States and China 

signed a MOU that provides for an independent regulator to eliminate certain 

requirements for foreign financial information suppliers, and removal of challenged 

restrictions on foreign suppliers.54 

Notwithstanding these understandings, China continued to leave several market-access 

related WTO commitments unfulfilled. For example, China still limits electronic 

payment services, foreign equity in domestic securities, and branch expansion for 

foreign insurance companies.55 

Ten Year Framework on Energy and Environment Cooperation 

During the SED meeting in June 2008, the United States and China signed the Ten 

Year Framework on Energy and Environment Cooperation to foster collaborative work 

on environmental sustainability, climate change, and energy security. The Ten Year 

Framework aimed to collaboratively improve electricity production and transmission, 

ensure clean water sources, limit air pollution, establish environmentally friendly and 

efficient transportation systems, and conserve forest and wetland ecosystems.56 During 

the December 2008 SED meeting, the United States and China added a sixth goal 

regarding energy efficiency cooperation: to promote energy efficiency in buildings and 

communities and increased consumer recognition of energy efficient products. Under a 

related MOU on energy conservation and environmental protection, the United States 

and China agreed that each country’s export-import banks will facilitate the financing 

of select environmentally friendly projects involving U.S. exports. 

In 2008, the United States and China formed seven voluntary “EcoPartnerships,” 

cooperative partnerships between subnational entities (e.g., states, provinces, cities, 

research universities, corporations, nonprofit organizations) that aim to find new 

approaches toward sustainable economic growth. These partnerships experimented 

with public-private partnerships to address deficiencies in energy efficiency in Chinese 

52 U.S. Department of the Treasury, “Joint Fact Sheet: Fourth Economic Dialogue,” June 2008. 53 U.S. Department of the Treasury, “Joint Fact Sheet: Fifth Economic Dialogue,” December 2008. 54 USTR, 2008 Report to Congress on China’s WTO Compliance, 2008, 8. See also the section on 

WTO dispute settlement in chap. 3. 55 USTR, 2009 National Trade Estimate Report, 2009, 108. 56 U.S. Department of the Treasury, “Joint U.S.–China Fact Sheet: Ten Year Energy and Environment 

Cooperation,” December 2008. 
5-14

enterprises and take advantage of U.S. private sector expertise to support China’s highpriority clean water program.57

Global Trade Imbalances and China’s Exchange Rate Regime 

The U.S. merchandise trade deficit with China of $270.3 billion in 2008 grew by $8.3 

billion relative to the year before. The magnitude and growth of this bilateral trade 

deficit, increasing imbalances in the global economy, and policies limiting the Chinese 

currency’s flexibility remained a concern for U.S. policymakers in 2008.58

Since China officially ended its fixed exchange rate peg with the U.S. dollar on July 21, 

2005, the yuan appreciated by approximately 17.2 percent in U.S. dollar terms by yearend 2008. 59 China’s current exchange-rate policy of managing the yuan against a 

broader set of currencies, while allowing the yuan to fluctuate by as much as 0.3 

percent daily against the dollar, has continued since mid-2005. China has reformed its 

currency market by authorizing non-state banks to administer spot currency trading.60

According to the U.S. Treasury Department, China’s large current account surplus in 

2008, and inflationary pressure associated with the corresponding influx of foreign 

exchange reserves, has continued to leave its economy imbalanced, both domestically 

and internationally. 61 During the June 2008 SED, the U.S. Treasury Department 

intensified pressure on China to rebalance its economy by boosting domestic demand 

through consumption-led growth, reforming its financial system, continuing to let the 

yuan appreciate, and imposing greater foreign exchange-rate flexibility. In addition to 

these efforts, the December 2008 SED placed emphasis on financial market stability 

and sustained economic growth in both countries.62 

Mexico 

In 2008, Mexico was the third largest single-country U.S. trading partner following 

Canada and China, and accounted for approximately 11 percent of U.S. trade with the 

world.63 The U.S. merchandise trade deficit with Mexico declined by $6.0 billion to 

$84.8 billion in 2008 (figure 5.7), mainly due to increased U.S. exports to Mexico, 

which in 2008 grew more in value than corresponding imports from Mexico. The 

slowdown of the U.S. and Mexican economies, mostly in the third and fourth quarters 

 57 Ibid. 

58 Congressional Research Service, “China-U.S. Trade Issues,” March 7, 2008. 59 USITC estimates based on foreign exchange rates provided by the IMF’s International Financial 

Statistics database. Given the recent global economic downturn, China has kept the yuan close to a peg 

against the dollar since early 2009. 60 In the past, all foreign exchange trading was highly regulated and exclusively run by the State 

Administration for Foreign Exchange (SAFE). 61 U.S. Department of Treasury, “Report to Congress on International Economic and Exchange Rate 

Policies,” May 2008. 62 U.S. Department of Treasury, “Joint Fact Sheet: Fifth Economic Dialogue,” December 2008. 63 Based on two-way trade, i.e., the sum of merchandise exports plus imports. 
of 2008,64 contributed to the decrease in the bilateral trade deficit with Mexico, which 

occurred despite a dollar appreciation of more than 25 percent against the Mexican 

peso in 2008. The U.S. trade surplus in services with Mexico grew by 2.1 percent to 

$8.3 billion in 2008 (figure 5.8). U.S. services exports to Mexico were $24.7 billion 

and U.S. services imports from Mexico were $16.4 billion. 

U.S. merchandise exports to Mexico amounted to $131.5 billion in 2008, up 10.2 

percent from 2007. In 2008, as in the previous year, machinery and transportation 

equipment continued to be the largest product group in bilateral trade, of which 

automotive trade was an important component in both imports and exports. Other 

leading U.S. exports to Mexico included petroleum products, computer parts, corn, 

soybeans, and parts for electrical apparatus. 

In 2008, U.S. merchandise imports from Mexico increased by 2.9 percent to $216.3 

billion. Leading U.S. imports from Mexico included petroleum and petroleum products, 

motor vehicles, televisions, cellular telephones, and medical instruments. Particularly 

important in the movement of U.S. imports was the increase in U.S. imports of mineral 

fuels, 65 which was partially offset by a decrease in U.S. imports of machinery and 

transport equipment—together responsible for most of the change in total U.S. imports 

from Mexico. U.S.-Mexico merchandise trade data are shown in appendix tables A.30 

through A.32. 

U.S.-Mexican trade relations are governed in large part by NAFTA, which provides 

duty-free treatment for substantially all bilaterally traded goods originating in the 

United States and Mexico. There were a number of trade disputes between the United 

States and Mexico that were the subject of WTO and NAFTA dispute settlement 

proceedings in 2008. The procedural developments in each of these cases are described 

in appendix tables A.19 and A.20, respectively.66 Recent developments in cross-border 

trucking provisions between Mexico and the United States are summarized below. 

Figure 5.7 U.S. merchandise trade with Mexico, 2004-08 Figure 5.8 U.S. private services trade with Mexico, 2004-08 a 

-150

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0

50

100

150

200

250

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

0

5

10

15

20

25

30

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

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

 a

 Data for 2008 are preliminary. 

 64 The slowdown in the economies of the United States and those of the developed world at the end of 

2008 is discussed in chap. 1, as well as the value of the dollar against the currencies of major U.S. trading 

partners. 65 In 2008, most of the increase in U.S. imports of petroleum products was due to the increase in the 

price of oil. Chap. 1 illustrates a substantial increase in the price of oil, which peaked in mid-2008. 

5-15

66 Developments during 2008 in WTO dispute settlement cases are also described in chap. 3. 
5-16

 

Cross-Border Trucking Between the United States and Mexico 

The NAFTA cross-border trucking provisions permit Mexican trucks to obtain 

operating authority to provide cross-border truck services throughout the United States 

beginning in 2000. Implementation, however, has been delayed because of safety 

concerns.67 On September 7, 2007, the U.S. Department of Transportation (USDOT) 

initiated a one-year Cross-Border Trucking Demonstration Project aimed at 

demonstrating the ability of Mexico-based motor carriers to operate safely in the 

United States beyond the commercial zones along the U.S.-Mexico border.68 In 2008, 

the USDOT evaluated this one-year demonstration project.69 On August 6 of the same 

year, the USDOT extended the demonstration program for two years until 2010. 70

However, the program was terminated by USDOT in January 2009 when the Congress 

discontinued its funding.71 

On October 31, 2008, the USDOT assessed how the Federal Motor Carrier Safety 

Administration (FMCSA) implemented U.S. motor carrier safety policies and 

regulations for this one-year demonstration project and evaluated the safety 

performance of Mexico-domiciled carriers operating beyond the border commercial 

zones in the United States.72 Although the one-year demonstration program permitted 

up to 100 Mexico-domiciled motor carriers to operate throughout the United States, 

only 25 Mexican carriers participated in the project.73 From September 7, 2007, to 

September 6, 2008, the report states that the FMCA records show that there were more 

than 12,000 truck crossings into the United States. Over 85 percent of these crossings 

were to destinations within the commercial zone—nearly all of them to Texas and 

California—and less than 15 percent were long-haul operations that went beyond the 

border commercial zone.74 

67 Developments in cross-border truck services between the United States and Mexico from 1981 to 

2004 are summarized in U.S. Department of Transportation, “Cross-Border Truck Safety Inspection 

Program..,” Fact sheet, February 23, 2007; and USITC, The Economic Effects of Significant U.S. Import 

Restraints—Fifth Update 2007, February 2007, 99. Developments from 2004 to 2007 are described in 72 

Fed. Reg. 23883 (May 1, 2007) and USITC, The Year in Trade 2007, 5–10. 68 The safety of the participating carriers was tracked closely by the Federal Motor Carrier Safety 

Administration (FMCSA) and its state partners, a joint U.S.- Mexico monitoring group, and an evaluation 

panel independent of the U.S. Department of Transportation. Details of the Cross-Border Trucking 

Demonstration Project are discussed in 72 Fed. Reg. 23883 (May 1, 2007); 72 Fed. Reg. 31877 (June 8, 

2007); 72 Fed. Reg. 46263 (August 17, 2007); and USITC, The Year in Trade 2007, 5–11. 69 As mandated by Congress, U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq 

Accountability Appropriations Act, 2007. P. L. 110-28 (2007), sec. 6901, 121 Stat. 183-185 (May 25, 2007). 70 73 Fed. Reg. 45796 (August 6, 2008). 

71 74 Fed. Reg. 11628 (March 18, 2009). The USDOT ceased to operate this program when Congress 

banned USDOT funds to operate or maintain the program, Omnibus Appropriations Act, March 11, 2009, 

Pub. L. No. 111-8. In response, the government of Mexico, stating that this measure is inconsistent with U.S. 

obligations under NAFTA, suspended the preferential tariffs that NAFTA affords certain goods from the 

United States. On March 18, 2009, the government of Mexico announced new tariffs on 89 tariff lines, which 

range from 10 percent to 45 percent with a simple average of 18 percent. The value of Mexico’s imports from 

the United States of these 89 products was $2.4 billion in 2007 and $2.3 billion in 2008, which amounted to 

less than 2 percent of total U.S. exports to Mexico. On March 19, 2009, the new tariffs became effective. 

Secretaría de Gobernación, Diario Oficial de la Federación (Mexico’s Federal Register), March 18, 2009. 72 The assessment was carried out by the Independent Evaluation Panel at the request of the U.S. 

Department of Transportation. 73 Independent Evaluation Panel Report, U.S.-Mexico Cross-Border Trucking Demonstration Project, 

xi. 74 Ibid., xii. 
5-17

The Independent Evaluation Panel that assessed the project also reported that, 

according to FMCSA and official state safety enforcement records, there were no 

crashes involving Mexico-domiciled trucks participating in the project. In addition to 

the every-truck-every-time checks done at the border-crossing facilities, more than 

7,000 and 1,400 safety inspections were conducted on participating drivers and trucks, 

respectively. Of the 7,000 driver safety inspections, less than 1 percent resulted in outof-service (OOS) violations. This driver OOS rate of the demonstration project was 

lower than the rate of all U.S.-domiciled carriers (7.2 percent) and U.S.-domiciled newentrant carriers (13.3 percent).75 Of the 1,400 vehicle safety inspections, 8.7 percent 

resulted in OOS violations compared to 22.6 percent of all U.S.-domiciled carriers and 

28.0 percent of U.S.-domiciled new-entrant carriers.76 The report found that a larger 

sample of carriers is needed to make a statistically significant comparison.77 

Although the project was terminated in early 2009, Mexico still grants the United 

States the right to operate U.S.-domiciled trucks in Mexico as originally granted in the 

two-year project extension. 

Japan 

In 2008, Japan was the fourth largest single-country U.S. trading partner, accounting 

for 6.2 percent of U.S. total merchandise trade. The U.S. merchandise trade deficit with 

Japan in 2008 was $77.7 billion or 8.4 percent of the total U.S. merchandise trade 

deficit, down for the second year in a row (figure 5.9). The $9.2 billion decrease in the 

merchandise trade deficit resulted from a 5.7 percent increase in U.S. exports to Japan 

and a 4.0 percent decrease in U.S. imports from Japan. This narrowing of the 

merchandise trade deficit with Japan may be partially attributable to the 17.2 percent 

depreciation of the dollar versus the yen in 2008. The U.S. services trade surplus with 

Japan increased by $1.5 billion to $17.3 billion in 2008. U.S. exports of services to 

Japan grew 5.8 percent to $42.6 billion, while imports of services from Japan increased 

3.4 percent to $25.3 billion (figure 5.10). 

U.S. merchandise exports to Japan were $61.4 billion or 5.3 percent of total U.S. 

merchandise exports in 2008, compared with $58.1 billion or 5.6 percent of the total in 

2007. Exports of corn, the leading U.S. export to Japan, increased 46.8 percent in 2008 

to $3.8 billion. The value of other leading agricultural exports, such as wheat, 

soybeans, and pork, increased sharply in terms of value compared with 2007, due in 

large part to higher prices. Exports of leading manufactures, such as aircraft and parts, 

semiconductor manufacturing equipment, medical instruments, and cigarettes, 

declined. The value of U.S. exports of mineral fuels (e.g., petroleum coke and liquefied 

natural gas) also increased significantly due to higher prices. 

 75 Ibid., xiii. 

76 Ibid. 

77 The panel reports that U.S. and Mexican officials cited uncertainty regarding whether the project will 

continue and the additional cost of insurance as the main reasons behind the limited participation of Mexican 

carriers. 
Figure 5.9 U.S. merchandise trade with Japan, 2004-08 Figure 5.10 U.S. private services trade with Japan, 2004-08 a 

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2004 2005 2006 2007 2008

billions of $

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0

5

10

15

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30

35

40

45

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

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

 a

 Data for 2008 are preliminary. 

U.S. merchandise imports from Japan declined for the second straight year to $139.1 

billion or 6.7 percent of total U.S. merchandise imports in 2008. The decline was 

primarily attributable to decreases in U.S. imports of motor vehicles and parts, although 

imports of most other manufactures also declined. Imports of passenger vehicles, the 

leading U.S. import from Japan, decreased 5.2 percent from 2007 to $42.7 billion or 

30.7 percent of total imports from Japan in 2008. Similarly, imports of motor vehicle 

parts decreased 11.8 percent to $7.1 billion. One exception was imports of copy and fax 

machine parts, which increased 11.8 percent to $4.7 billion. U.S.-Japan merchandise 

trade data are shown in appendix tables A.33 through A.35. 

The U.S.-Japan Economic Partnership for Growth has served as the primary forum for 

trade and economic dialogue between the two countries since its establishment in 2001. 

In 2008, discussions under this framework focused on U.S. beef exports to Japan and 

deregulation of Japan’s economy, including economy-wide and sector-specific reforms. 

 

Beef 

Japan continues to restrict imports of U.S. beef by requiring all products to be derived 

from animals 20 months old or younger because of concerns about BSE (bovine 

spongiform encephalopathy, also known as “mad cow disease”).78 Japan’s restrictions 

on imports of U.S. beef have had a substantial adverse impact on U.S. beef exports. 

Prior to the prohibition on imports of U.S. beef in December 2003, Japan was the 

largest export market for U.S. beef. U.S. exports of beef totaled $3.6 billion in 2003, of 

which $1.3 billion, or 37.1 percent, went to Japan. In 2008, U.S. exports of beef totaled 

$3.2 billion, and just $382 million or 12.0 percent of that total was shipped to Japan.79 

 78 Japan was one of several countries that banned imports of U.S. beef and beef products in December 

2003 after a cow of Canadian origin, found in a U.S. herd, was determined to be infected with BSE. USDA 

implemented an export verification program in 2006 to ensure that exports meet the Japanese age restrictions 

and that banned Canadian beef did not mix with U.S. beef exported to Japan. USDA, Food Safety and 

Inspection Service, “Export Requirements for Japan, JA-139 (April 23, 2008), Red Meat Export 

Requirements for Japan”; USTR, 2008 Trade Policy Agenda, 2008, 158–165; and USITC, Global Beef 

Trade, 2008, 5-4–5-6. 

5-18

79 GTIS, Global Trade Atlas Database (accessed April 2, 2009). 
5-19

 

The year 2008 was the first full year since Japan replaced its policy of 100 percent 

reinspection of U.S. beef and beef products with a sampling-based protocol. This 

change likely contributed to the 56.2 percent increase in U.S. beef exports to Japan 

between 2007 and 2008.80 As of December 2008, Japan’s 20 months or younger age 

restriction was still in place. 

Deregulation 

During 2008, bilateral dialogue on the deregulation of Japan’s economy continued 

under a component of the partnership known as the Regulatory Reform and 

Competition Policy Initiative. Discussions with Japan focused on recommendations 

originally exchanged in October 2007.81

Japan implemented several cross-sectoral reforms in 2008. These reforms included 

efforts to open regulatory decision-making, lower barriers to trade and investment, 

enhance competition, and improve the business climate.82 Japan revised its customs 

laws in order to streamline import procedures, and improved efficiency in customs 

processing through the elimination of overtime service charges. 83 Japan also 

strengthened the penalties for companies and individuals caught rigging bids on 

government contracts, and increased to 11 the number of ministries that have adopted 

programs to encourage the reporting of bid-rigging activities.84

Japan continued sector-specific reforms in 2008. Japan agreed to eliminate mobile 

handset subsidies to telecommunications companies, which have impeded competition 

by causing high costs to consumers who choose to change service providers.85 Japan 

approved six new food additives for use in Japan that are already generally accepted 

worldwide, including in the United States. Additionally, Japan liberalized the sale of 

insurance products through banks, creating greater consumer choice. Japan also moved 

to equalize regulatory treatment of formerly state-owned companies (Japan Post 

companies) relative to other private companies. Japan has taken steps to eliminate the 

perception that Japan Post Bank and Japan Post insurance deposits are implicitly 

guaranteed by the government, as well as to ensure that Japan Post companies are 

required to meet the same banking, insurance, and other regulatory obligations as other 

private sector financial companies.86 

80 Ibid. 

81 USTR, “Seventh Report to the Leaders on the U.S.-Japan Regulatory Reform and Competition 

Policy Initiative,” Fact sheet, July 5, 2008. 82 Ibid. 

83 Ibid. 

84 Ibid. 

85 USTR, “USTR Schwab Calls for Reinvigoration of Regulatory Reform in Japan,” July 5, 2008. 86 USTR, “Seventh Report on the U.S.-Japan Regulatory Reform Initiative,” July 5, 2008. 
Korea 

Korea was the seventh largest single-country two-way trading partner of the United 

States with two-way merchandise trade valued at $79.8 billion in 2008, accounting for 

2.4 percent of U.S. trade with the world. The United States recorded a $13.6 billion 

trade deficit with Korea in 2008, up slightly from a $12.4 billion deficit in 2007 and 

similar to deficits in previous years (figure 5.11). The U.S. trade surplus in services 

with Korea grew $871 million to $7.0 billion (figure 5.12). 

U.S. exports to Korea were valued at $33.1 billion in 2008, an increase of 0.2 percent 

over 2007. Leading U.S. exports to Korea during the year included corn, aircraft, 

transistors, and ferrous waste and scrap. Most of the 2007 leading exports (19 of the 

top 25) showed declines in value; but strong increases in exports of corn, transistors, 

and ferrous waste and scrap largely offset those declines. 

U.S. imports from Korea totaled $46.7 billion, an increase of 2.9 percent from 2007. 

Leading U.S. imports from Korea included cellular phones, automobiles, computer 

parts and accessories (mainly memory modules), and computer chips. Declines, by 

value, of many of the leading imports were more than offset by the large increases in 

the value of imports of cellular phones and computer chips. U.S.-Korea merchandise 

trade data are shown in appendix tables A.36 through A.38. 

U.S.-Korean trade relations in 2008 were dominated by the status of the U.S.-Korea 

FTA, which was signed in June 2007, and the agreement on a protocol to resume 

exports of U.S. beef to Korea, which had been suspended originally over bovine 

spongiform encephalopathy concerns in late 2003. 

Figure 5.11 U.S. merchandise trade with Korea, 2004-08 Figure 5.12 U.S. private services trade with Korea, 2004-08 a 

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-20

-10

0

10

20

30

40

50

60

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

0

2

4

6

8

10

12

14

16

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

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

 a

 Data for 2008 are preliminary. 

5-20
5-21

 

U.S.-Korea FTA 

The United States and the Republic of Korea signed an FTA on June 30, 2007, after 

concluding negotiations in April of that year. The U.S.-Korea FTA would, if 

implemented, be the “most commercially significant” free trade agreement for the 

United States since the NAFTA entered into force in 1994.87 

The FTA would eliminate duties on a wide range of the partner countries’ originating 

goods immediately, while phasing out duties on other originating goods over differing 

transition periods and providing preferential tariff-rate quotas (TRQ) on certain 

sensitive goods. Specifically, upon entry into force of the FTA, approximately 82 

percent of U.S. tariff lines and approximately 80 percent of Korean tariff lines would 

have free rates of duty for originating goods. Approximately 93 percent of U.S. tariff 

lines and 92 percent of Korean tariff lines would have free rates of duty after five years; 

approximately 99 percent of U.S. tariff lines and 98 percent of Korean tariff lines 

would have free rates of duty by year 10.88

At the end of 2008, the agreement was pending approval by the U.S. Congress and the 

Korean National Assembly. A major area of contention for the United States concerns 

automobiles. A number of U.S. manufacturers, union groups, and legislators have 

publicly opposed the agreement citing concerns over market access.89 Korea is a major 

vehicle producer and exporter but has low levels of import penetration. 

Beef 

On January 13, 2006, the United States and Korea announced an initial import protocol 

for the resumption of Korean imports of U.S. beef (boneless beef from cattle under 30 

months of age), which had been suspended in December 2003 after a Canadian cow in 

Washington State was found to have BSE. On September 7, 2006, Korea announced 

that it would resume importation of U.S. beef in accordance with the protocol. 90 

Following the resumption of imports, several shipments of U.S. beef to Korea were 

rejected by Korean authorities because of the presence of bones, and further shipments 

from the United States were effectively suspended. Shipments were resumed in early 

2007, but problems persisted and all imports from the United States were stopped in 

October 2007.91 

The United States urged Korea to recognize guidelines set by the World Organization 

for Animal Health (OIE)92 and reopen its market. On May 22, 2007, the OIE Scientific 

Commission formally classified the United States as a controlled risk country for BSE. 

87 USTR, “United States and Korea Conclude Historic Trade Agreement,” April 2, 2007. 88 USITC, U.S.-Korea Free Trade Agreement, 2007, 1-7. 89 Ibid., 3-85–3-90. 

90 USDA, “Statement by Agriculture Secretary Mike Johanns.” Sept. 7, 2006. 91 USITC, Global Beef Trade, 2008, 6-1. 92 The Office International des Epizooties was established in 1924. In May 2003, the Office became the 

World Organization for Animal Health, but kept its historical acronym OIE. See 

http://www.oie.int/eng/OIE/en_about.htm?e1d1.
5-22

The controlled risk classification recognizes that U.S. regulatory controls are effective 

and that U.S. fresh beef and beef products from cattle of all ages can be safely traded.93 

On April 18, 2008, the United States and Korea agreed to a protocol that provides for a 

full reopening of the Korean beef market to exports from the United States. The 

protocol defines conditions for the importation of U.S. beef into Korea and requires 

that the United States meet or exceed OIE guidelines. It permits all U.S. beef (bone-in 

and boneless) and beef products from cattle of all ages to be imported into Korea, with 

appropriate specified risk materials, as defined by the OIE, removed.94

There was significant public opposition to resuming imports of U.S. beef in Korea.95

As a result, on June 20, 2008, Korean beef importers and U.S. exporters reached a 

commercial understanding—separate from the April 18 agreement—that only U.S. beef 

and beef products from cattle less than 30 months of age will be shipped to Korea, as a 

transitional measure, to improve Korean consumer confidence in U.S. beef. At the 

request of U.S. exporters, the U.S. Department of Agriculture set up a voluntary 

Quality System Assessment Program that will verify that beef from participating plants 

is from cattle less than 30 months of age.96 U.S. beef exports resumed as of June 26, 

2008, after Korea published its “Import Health Requirements for U.S. Beef and 

Products” in its official gazette, 97 and Korea quickly returned to being one of the 

leading destinations for U.S. beef exports. 

Taiwan 

In 2008, Taiwan was the United States’ 11th largest trading partner based on two-way 

trade, and accounted for approximately 1.8 percent of U.S. trade with the world. The 

narrowing of the U.S. merchandise trade deficit with Taiwan, which amounted to $12.6 

billion in 2008 compared to $13.5 billion the year before, was mostly attributable to a 

fall in U.S. merchandise imports from Taiwan (figure 5.13). The U.S. trade deficit in 

services with Taiwan increased $106.0 million to $291.0 million in 2008, primarily 

driven by growth in U.S. service sector imports (figure 5.14). 

U.S. merchandise exports to Taiwan amounted to $23.6 billion in 2008, down 3.7 

percent compared to 2007. This decline was led by falling U.S. exports of 

semiconductor manufacturing machines, and caused Taiwan to fall from the 10th to 

13th largest destination for U.S. exports in 2008. Leading U.S. exports to Taiwan 

included processors and controllers for computers, electronic integrated circuits, 

semiconductor manufacturing and assembly equipment, soybeans, and aircraft. Ferrous 

waste and scrap exports grew by 124.3 percent in 2008 to become the seventh largest 

U.S. export to Taiwan. 

 93 OIE, “Resolution No. XXIV: Recognition of the Bovine Spongiform Encephalopathy Status of 

Member Countries.” 94 USTR, 2009 Trade Policy Agenda, 2009, 151. 95 USITC, Global Beef Trade, 2008, 6-2. 96 USTR, 2009 Trade Policy Agenda, 2009, 151; USTR, “USTR Confirms Korea’s Announcement,” 

June 21, 2008. Key elements and procedures of the protocol are summarized in USITC, Global Beef Trade, 

2008, 6-13–6-14. 97 USTR, “Statement from USTR Schwab on the Issuing of the Korea Beef Protocol,” June 25, 2008. 
Figure 5.13 U.S. merchandise trade with Taiwan, 2004-08 Figure 5.14 U.S. private services trade with Taiwan, 2004-08 a 

-20

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0

10

20

30

40

50

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

-1

0

1

2

3

4

5

6

7

8

9

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

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

 a

 Data for 2008 are preliminary. 

In 2008, U.S. imports from Taiwan amounted to $36.2 billion, representing a 4.9 

percent decrease from the year before. The drop in overall imports from Taiwan was 

led by consumer products, such as liquid crystal display (LCD) screens, because U.S. 

demand for such products dropped precipitously in the fourth quarter. In 2008, Taiwan 

fell from the 9th to 12th largest source of U.S. imports. Leading U.S. imports from 

Taiwan during the year included electronic digital integrated circuits, wireless 

telephones, reception apparatuses for navigational radios, parts for data processing 

machines, and reception apparatuses for televisions. U.S.-Taiwan merchandise trade 

data are shown in appendix tables A.39 through A.41. 

A U.S.-Taiwan Trade and Investment Framework Agreement (TIFA) was established 

in 1994 as the primary forum in which officials from the United States and Taiwan 

could address bilateral trade issues and promote economic cooperation.98 Although the 

TIFA’s seventh annual meeting did not take place in 2008 as scheduled, U.S.-Taiwan 

negotiations on intellectual property rights enforcement and agricultural trade were 

nonetheless coordinated through the TIFA framework. 

Intellectual Property Rights 

In April 2008, the USTR published in its annual Special 301 Report that an Out-ofCycle Review would be initiated for Taiwan to monitor progress on outstanding IPR 

enforcement. As a result of this review, concluded in January 2009, Taiwan was taken 

off of the watch list, where it had been since 2004.99 

The decision to remove Taiwan from the watch list was based on the finding that 

Taiwan had achieved years of sustained progress in combating IPR violations, and that 

Taiwan strengthened IPR protection in 2008 in several additional ways. First, in 2008, 

 98 American Institute in Taiwan (AIT), “U.S. and Taiwan Enhance Trade Cooperation,” July 12, 2007. 

5-23

99 USTR, “USTR Announces Conclusion of the Special 301 Out-of-Cycle Review for Taiwan,” 

January 16, 2009. 
5-24

 

Taiwan established an IPR Court and an IPR enforcement branch in the High 

Prosecutor’s Office in order to develop the capacity to handle technically difficult IPR 

cases. Second, a Campus IPR Action Plan, launched in 2007 by the Ministry of 

Education, continued to fight Internet and textbook piracy on campuses. Third, Taiwan 

made moves toward amending its copyright law with the intention of requiring Internet 

service providers to undertake specific notice-and-takedown actions against online 

infringers.100 

Despite Taiwan’s 2008 progress in IPR protection and enforcement, the USTR 

reiterated several of its concerns from previous years.101 These include the magnitude 

of counterfeit pharmaceutical imports in Taiwan, ongoing Internet piracy, illegal file 

sharing, textbook copying at universities, and the lack of sufficient IPR protection for 

the packaging, configuration, and appearance of products (so-called trade dress). 

Taiwan remains a transshipment point and a market for counterfeit clothing and luxury 

goods. Customs and intellectual property police regularly seize these products, but 

inadequate resources combined with relatively light sentences make these deterrents 

ineffective. The U.S. International Intellectual Property Alliance estimates that losses 

due to copyright piracy in Taiwan cost U.S. industry $327.8 million in 2007. However, 

progress has been made in curbing the flow of counterfeit goods from Taiwan to the 

United States, as the value of these products seized by U.S. Customs dropped from 

$26.5 million in 2002 to $3.4 million in 2007 and to $1.3 million in the first half of 

2008.102 

Agriculture 

Taiwan remained a significant market for U.S. agriculture in 2008, importing $3.4 

billion of U.S. agricultural products.103 During the year, agricultural trade negotiations 

continued to focus on providing more comprehensive market access for U.S. beef and 

beef products and reforming Taiwan’s rice procurement practices. 

Beef 

In 2008, Taiwan continued to restrict imports of U.S. beef by requiring all products to 

be derived from animals younger than 30 months. 104 Additionally, Taiwan still 

required that specified risk material tissue be removed from all beef imports, despite 

the fact that the more internationally accepted standard is only the removal of tissue 

from cattle over 30 months of age.105 Moreover, ruminant and nonruminant product 

100 Ibid. 101 USTR, 2009 National Trade Estimate Report, 2009, 484. 102 Ibid., 484. 103 USDA, Foreign Agricultural Service, FAS Online Database (accessed March 12, 2009). 104 USTR, 2009 National Trade Estimate Report, 2009, 480. 105 Ibid. 
5-25

made.106

 

imports intended for use in animal feed and pet food are still banned due to continued 

concerns over BSE, though some exceptions are 

Some progress was made on market access for the entire range of U.S. beef and beef 

products in 2008. In November 2008, the Director of the American Institute in 

Taiwan107 issued a statement urging Taiwan to resume trade in all U.S. beef and beef 

products, after Taiwan’s health authorities had completed all related scientific review 

and technical work.108 However, Deputy Director-General of the Ministry of Taiwan’s 

Foreign Affairs’ Department of North American Affairs responded by saying that while 

Taiwan’s Department of Health had sent experts to the United States twice to inspect 

beef safety and did not detect any problems, there is no timetable set for the full 

resumption of trade in all beef products.109 

U.S. beef exports to Taiwan recovered strongly after the import ban was lifted in 

January 2006. In 2003, before the impositions of any of the bans, the United States 

exported $70 million worth of fresh/chilled and frozen beef.110 By 2007 and 2008, U.S. 

exports of fresh/chilled and frozen beef to Taiwan amounted to $107 and $128 million, 

respectively.111 

Rice 

Taiwan implemented a country-specific quota (CSQ) for public sector rice imports in 

2007 after it received certification from the WTO on modifications and rectifications to 

its existing TRQ import regime.112 In 2008, Taiwan did not fulfill its obligations in 

regard to imports of rice from the United States and other WTO members. At the end 

of the year, only 30 percent (28,300 mt) of the annual import requirement from all 

countries had been confirmed, of which purchases of U.S. rice (4,000 mt) were just 7 

percent of the U.S. CSQ.113 U.S. companies’ ability to win bids has remained inhibited 

by price ceilings that effectively allow Taiwan’s import authorities to reject tender 

offers and force bidders into a price negotiation. The practical impact is to force 

exporters to lower their competitive bids in order to win tenders and to significantly 

delay Taiwan’s purchases.114 U.S. exports of rice to Taiwan declined from $36 million 

in 2007 to $15 million in 2008.115 

106 The ruminant and nonruminant products intended for use as animal feed and pet food include tallow 

(including protein-free tallow), lard, poultry, and porcine meal. 107 U.S. commercial, cultural, and other interaction with the people on Taiwan is facilitated through the 

American Institute in Taiwan (AIT), a private nonprofit corporation, which was set up after the United States 

changed its diplomatic recognition from Taipei to Beijing in 1979. 108 AIT, “Statement on U.S. Beef by AIT Director Stephen M. Young,” November 12, 2008. 109 USDA, “Taiwan Agricultural News Summaries from Nov. 9 – 15,” March 20, 2009. 110 USITC Dataweb (accessed March 29, 2008). 111 USDA, FAS, FAS Online Database (accessed March 12, 2009). 112 USDA, FAS, “GAIN Report, Public Rice Tender for 2007 Imports,” November 1, 2007. 113 USDA, FAS, “GAIN Report, Results of December 17-19 Rice Tender under the 2008 Quota for 

Public Sector Imports,” December 22, 2008. 114 USTR, 2009 National Trade Estimate Report, 2009, 478. 115 USITC, Dataweb (accessed March 20, 2009). 
Brazil 

Brazil was the 12th largest single-country two-way trading partner of the United States 

and the second largest South American partner after Venezuela, with two-way 

merchandise trade valued at $59.1 billion in 2008, accounting for 1.8 percent of U.S. 

trade with the world. The United States recorded a $1.0 billion trade deficit with Brazil 

in 2008, down from a $3.3 billion deficit in 2007 and down substantially from deficits 

in previous years (figure 5.15). The U.S. trade surplus in services with Brazil grew $1.6 

billion to $7.4 billion in 2008 (figure 5.16). 

U.S. exports to Brazil were valued at $29.0 billion in 2008, an increase of 33.9 percent 

over 2007. Leading U.S. exports to Brazil during the year included aircraft and aircraft 

parts (including jet engines and parts), refined petroleum products, and coal. There 

were especially large increases in the value of aircraft and jet engines116 and refined 

petroleum products (reflecting increases in both quantity and unit values). 

U.S. imports from Brazil totaled $30.1 billion, an increase of 20.2 percent from 2007. 

Leading U.S. imports from Brazil included crude petroleum, pig iron, aircraft, and 

refined petroleum products. There was an especially large increase in the value of crude 

petroleum (reflecting increases in both quantity and unit values), which accounted for 

over 75 percent of the total increase in the value of imports. U.S.-Brazil merchandise 

trade data are shown in appendix tables A.42 through A.44. 

U.S.-Brazilian dialogue on IPR enforcement is discussed in the following section. An 

agreement on arbitration of the WTO case brought by Brazil concerning U.S. subsidies 

on upland cotton was reached on October 1, 2008 (see table A.19). 

Figure 5.15 U.S. merchandise trade with Brazil, 2004-08 Figure 5.16 U.S. private services trade with Brazil, 2004-08 a 

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-5

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10

15

20

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35

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

0

2

4

6

8

10

12

14

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

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

 a

 Data for 2008 are preliminary. 

 

5-26

116 Aircraft and the engines in such aircraft are exported together but are recorded separately for trade 

accounting purposes. 
5-27

Intellectual Property Rights Enforcement 

The USTR reported that Brazil has made important progress in improving the 

effectiveness of IPR enforcement, particularly efforts aimed at pirated audiovisual 

products such as CDs and DVDs.117 There has also been increased cooperation between 

the U.S. Patent and Trademark Office and the Brazilian National Institute of Industrial 

Property, highlighted by a Memorandum of Understanding signed in July 2008.118 

The United States moved Brazil from the Special 301 priority watch list to the watch 

list in 2007 in recognition of Brazil’s considerable progress in enhancing copyright 

enforcement. 119 An Out-of-Cycle Review was begun in 2007 to evaluate the 

sustainability of the progress Brazil had achieved in IPR enforcement.120 The result of 

the Out-of-Cycle Review was Brazil’s continuation on the watch list in 2008.121

The United States continues to have several concerns about Brazil’s IPR enforcement 

regime. Brazilian law requires that its National Health Surveillance Agency (ANVISA) 

approve pharmaceutical patents before they are issued and the USTR considers that 

ANVISA’s role in reviewing pharmaceutical patent applications remains 

nontransparent. Even though concrete steps have been taken to streamline patent 

application processing, the application backlog remains high, resulting in extensive 

delays in patent approvals.122

The United States and Brazil continue to pursue bilateral dialogue on IPR issues 

through the U.S.-Brazil Bilateral Consultative Mechanism and other means. The USTR 

recommends that Brazil strengthen its IPR enforcement legislation, take greater action 

in addressing book and Internet piracy, and consider acceding to and implementing the 

World Intellectual Property Organization (WIPO) Internet Treaties.123

India 

In 2008, India was the 15th largest U.S. trading partner based on two-way trade, 

accounting for 1.3 percent of total U.S. trade. The U.S. merchandise trade deficit with 

India was $8.5 billion in 2008, an increase of $1.0 billion compared to 2007, but still 

$4.1 billion below the record deficit recorded in 2006 (figure 5.17). The increase in the 

trade deficit with India was associated with a 23.3 percent appreciation of the U.S. 

dollar against the Indian rupee in 2008.124 The U.S. trade deficit in services with India 

grew $1.4 billion, from $251 million in 2007 to $1.6 billion in 2008 (figure 5.18). In 

2008, U.S. firms continued to purchase information technology (IT) services from 

India. According to Indian sources, during the year India relied on the United States to 

 

117 USTR, 2009 National Trade Estimate Report, 2009, 44. 118 Ibid. 119 USTR, 2007 Special 301 Report, 2007, 30. 120 Ibid. 121 USTR, 2008 Special 301 Report, 2008, 38. 122 USTR, 2009 Trade Policy Agenda, 2009, 131; USTR, 2009 National Trade Estimate Report, 2009, 44. 123 USTR, 2008 Special 301 Report, 2008, 39. 124 U.S. Federal Reserve Board, “Foreign Exchange Rates-Historical Data.” 
Figure 5.17 U.S. merchandise trade with India, 2004-08 Figure 5.18 U.S. private services trade with India, 2004-08 a 

-15

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-5

0

5

10

15

20

25

30

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

-4

-2

0

2

4

6

8

10

12

14

2004 2005 2006 2007 2008

billions of $

Exports Imports Trade balance

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

 a

 Data for 2008 are preliminary. 

consume 60 percent of its exports of IT-business process outsourcing services, which 

increased overall by 29.0 percent to $40.9 billion.125

U.S. merchandise exports to India amounted to $17.3 billion in 2008, up 6.3 percent 

compared to 2007. Leading U.S. exports to India included fertilizers, aircraft, 

nonindustrial diamonds, nonmonetary gold, and oil from coal tar. Although the Boeing 

Aircraft Company has delivered 163 passenger aircraft valued at $25 billion since 

2005,126 U.S. aircraft exports to India declined by nearly 60 percent in 2008 compared 

to 2007. 

In 2008, U.S. merchandise imports from India increased 8.4 percent to $25.9 billion. 

Leading U.S. imports from India in 2008 included nonindustrial diamonds, gold 

jewelry, certain medicaments, linens, pipe for oil and gas pipelines, and apparel. U.S. 

imports of nonindustrial diamonds from India consisted of raw diamonds imported by 

Indian companies from third countries for processing and polishing before export to the 

United States. In the first full year since the U.S. ban on imports of Indian mangos was 

lifted in 2007, imports of fresh mangos from India nearly doubled from $654,888 in 

2007 to $1.2 million in 2008. U.S.-India merchandise trade data are shown in appendix 

tables A.45 through A.47. 

The U.S.-India Trade Policy Forum (TPF) serves as the primary forum for trade and 

economic dialogue between the two countries.127 Trade issues addressed in the TPF 

during 2008 are discussed below. There were also important developments in 2008 in 

two WTO dispute settlement cases involving the United States and India.128 In the first 

case, the United States alleged that India imposes an “additional duty” and an “extraadditional duty” in addition to a basic customs duty on imported wines, spirits, and 

other imports.129 The dispute settlement panel issued its report on June 9, 2008, and the 

Appellate Body issued its report on October 30, 2008, which found, among other 

things, that the “additional” and “extra-additional” duties are not consistent with the 

WTO’s core schedule tariff commitment rules in that they resulted in the imposition of 

 125 “IT-BPO Sector Overview,” NASSCOM, Industry Trends. 126 Humaira Siddiqui, “India is key to Boeing future plans,” Boeing India Strategy, July 2008. 127 USDA, FAS, “U.S. –India Trade Relations,” June 2006. 128 For more information on these WTO disputes, see chap. 3 and appendix table A.19. 

5-28

129 For more background on this dispute, see USITC, The Year in Trade 2007, July 2008, 5-20. 
5-29

 

duties in excess of those committed to by the Indian government in its schedule of tariff 

concessions. 130 In the second case, India claimed that an additional bonding 

requirement imposed by U.S. Customs on importers of frozen warm-water shrimp 

subject to an antidumping duty order from India is inconsistent with U.S. WTO 

obligations. The dispute settlement panel issued its report on February 29, 2008, and 

the Appellate Body issued its report on July 16, 2008.131 The panel and Appellate Body 

found that the bonding requirement was inconsistent with certain provisions of the 

Antidumping Agreement. 

Trade Dialogue 

The TPF, established in 2005, is a key element of the U.S.-India Economic Dialogue 

and is co-chaired by the United States Trade Representative and India’s Minister of 

Commerce and Industry.132 The TPF was created to help facilitate and promote bilateral 

trade and investment, and discuss other bilateral and multilateral trade issues such as 

the ongoing WTO Doha Round negotiations. 133 The TPF serves as a venue for 

discussion in five key areas: tariffs and nontariff barriers, agriculture, investment, 

services, and innovation and creativity.134 The fifth ministerial-level meeting was held 

on February 19, 2008, in Chicago, Illinois, where discussions covered issues such as a 

potential bilateral investment treaty and market access for items of interest to both 

sides.135

The delegations also met for the second time with the U.S.-India Private Sector 

Advisory Group (PSAG) to the TPF. The PSAG presented its vision statement on key 

policy issues on which the governments could enhance their engagement and further 

bolster the U.S.-India economic partnership. 136 The PSAG identified the following 

intermediate targets for the two governments: negotiate a mutually agreeable Bilateral 

Investment Treaty; continue to promote sectoral openings; promote regulatory 

cooperation; and cooperate on all aspects of protection of intellectual property and 

promotion of technology transfer.137

 

130 WTO, DSB, DS360: India—Additional and Extra-additional Duties on Imports from the United 

States, Online summary; USTR, “WTO Appellate Body Reverses Panel and Finds in Favor of the United 

States Offsetting Duties on Imports In Excess of Taxes on Like Domestic Products Break WTO Rules,” 

October 30, 2008. 131 WTO, DSB, DS345: United States—Customs Bond Directive for Merchandise Subject to Antidumping/Countervailing Duties, Online summary. 132 USTR, “Joint Statement by USTR Portman and Minister Nath from the Trade Policy Forum,” 

November 13, 2005. 133 USTR, “U.S. Trade Representative Susan Schwab and India’s Minister of Commerce and Industry 

Kamal Nath Pledge Increased U.S.-India Trade and Investment; Announce Formation of Private Sector 

Advisory Group,” April 13, 2007. 134 GOI, Department of Commerce and Industry, “India and US Discuss Key Trade Issues Kamal Nath 

and Susan Schwab Commit to Expand Opportunities for Bilateral Trade and Investment,” June 23, 2006. 135 USTR, “United States and India Discuss Key Trade Issues,” February 22, 2008. 136 Ibid. 137 Embassy of India, “Minister of Commerce and Industry Mr. Kamal Nath and U.S. Trade 

Representative Susan C. Schwab Pursue Opportunities for Enhancing Trade and Investment Ties Between the 

U.S. and India,” February 22, 2008. 

Biblio-1

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———. 2008 Report to Congress on China’s WTO Compliance. Washington, DC: USTR, 2008. 

———. 2008 Special 301 Report. Washington, DC: USTR, 2008. 

———. 2008 Trade Policy Agenda and 2007 Annual Report. Washington, DC: USTR, 2008. 

———. 2009 National Trade Estimate Report on Foreign Trade Barriers. Washington, DC: USTR, 2009. 

———. 2009 Trade Policy Agenda and 2008 Annual Report. Washington, DC: USTR, 2009 

———. “China to End Restrictions on Suppliers of Financial Information Services Challenged by United 

States in WTO.” Press release, November 13, 2008. 

———. “Joint Statement by USTR Portman and Minister Nath from the Trade Policy Forum.” Press 

release, November 13, 2005. 

———. “Joint Statement on 2007 NAFTA Commission Meeting.” Press release, August 14, 2007. 

———. Letter from Susan C. Schwab to the Honorable Nancy Pelosi, Speaker, U.S. House of 

Representatives, September 22, 2008. 

http://www.ustr.gov/assets/World_Regions/Southeast_Asia_Pacific/TransPacific_Partnership_Agreement/Other_Documents_(Letters,_etc)/asset_upload_file775_15142.pd

f (accessed March 5, 2009). 

———. Letter from Susan C. Schwab to the Honorable Nancy Pelosi, Speaker, U.S. House of 

Representatives, December 30, 2008. 

http://www.ustr.gov/assets/World_Regions/Southeast_Asia_Pacific/TransPacific_Partnership_Agreement/Other_Documents_(Letters,_etc)/asset_upload_file152_15321.pd

f (accessed March 12, 2009). 

———. “Memorandum of Understanding Between the Governments of the United States of America and 

the People’s Republic of China Concerning Trade in Textile and Apparel Products,” November 8, 

2005. 
Biblio-11

———. “Schwab Announces Implementation of Two CAFTA-DR Textile Provisions.” Press release, 

July 22, 2008. 

———. “Schwab Statement on Colombia Agreement Being Sent to Congress.” Press release, April, 2008. 

———. “Seventh Report to the Leaders on the U.S.-Japan Regulatory Reform and Competition Policy 

Initiative,” July 5, 2008. 

———. “Seventh Report to the Leaders on the U.S.-Japan Regulatory Reform and Competition Policy 

Initiative.” Fact sheet, July 5, 2008. 

———. “Statement of USTR Rob Portman on Signing of U.S.-Central American-Dominican Republic 

Free Trade Agreement.” Press release, August 2, 2005. 

———. “Statement of U.S. Trade Representative Susan C. Schwab Regarding Entry into Force of the 

U.S.-Oman Free Trade Agreement.” Press release, December 29, 2008. 

———. “Statement from Ambassador Susan C. Schwab on the House vote to deny the Colombia Free 

Trade Agreement.” Press release, April 10, 2008. 

———. “Statement from USTR Schwab on the Issuing of the Korea Beef Protocol.” Press release, June 

25, 2008. 

———. “Statement on EC-Biotech Dispute.” Press release, January 14, 2008. 

———. “Tribunal Orders Canada to Cure Breach of the Softwood Lumber Agreement.” Press 

release, February 26, 2009. 

———. “United States and India Discuss Key Trade Issues.” Press release, February 22, 2008. 

———. “United States and Korea Conclude Historic Trade Agreement.” Press release, April 2, 2007. 

———. “United States Files WTO Case Against China Over Illegal Support for Chinese ‘Famous 

Brands’.” Press release, December 19, 2008. 

———. “United States Files WTO Case Against India Challenging Excessive Duties on U.S. Wine and 

Spirits.” Press release, March 6, 2007. 

———. “United States Files WTO Case Challenging EU Restrictions on U.S. Poultry Exports.” Press 

release, January 16, 2009. 

———. “United States Imposes Tariffs On Softwood Lumber From Four Canadian Provinces Due To 

Canada's Failure To Comply With The Softwood Lumber Agreement.” Press release, April 7, 

2009. 

———. “United States Requests WTO Panel in Challenge of India’s Duties on Wine and Spirits and 

Other Imports from the United States.” Press release, May 25, 2007. 

———. “United States to Begin Free Trade Negotiations This Week with the United Arab Emirates and 

Oman.” Press release, March 8, 2005. 
Biblio-12

———. “U.S. Trade Representative Susan Schwab and India’s Minister of Commerce and Industry 

Kamal Nath Pledge Increased U.S.-India Trade and Investment; Announce Formation of Private 

Sector Advisory Group.” Press release, April 13, 2007. 

———. “USTR Announces Agreement on Extension of Time for Costa Rica to Join the CAFTA-DR.” 

Press release, October 1, 2008. 

———. “USTR Announces Conclusion of the Special 301 Out-of-Cycle Review for Taiwan.” Press 

release, January 16, 2009. 

———. “USTR Confirms Korea’s Announcement.” Press release, June 21, 2008. 

———. “USTR Schwab Calls for Reinvigoration of Regulatory Reform in Japan.” Press release, July 5, 

2008. 

———. “United States Wins WTO Dispute Over Deficiencies in China’s Intellectual Property 

Rights Laws.” Press release, January 26, 2009. 

———. “WTO Appellate Body Reverses Panel and Finds in Favor of the United States Offsetting Duties 

on Imports in Excess of Taxes on Like Domestic Products Break WTO Rules.” Press release, 

October 30, 2008. 

White House. Economic Report of the President. Washington, DC, 2009. http://www.gpoaccess.gov/eop/. 

———. “Fact Sheet: Advancing Transatlantic Economic Integration through the Transatlantic Economic 

Council,” December 12, 2008. 

http://www.whitehouse.gov/news/releases/2008/12/print/20081212-7.html (accessed December 

17, 2008). 

———. “President’s Statement on the Creation of the U.S. - China Strategic Economic Dialogue,” 

September 20, 2006. 

World Organization for Animal Health (OIE). “Resolution No. XXIV: Recognition of the Bovine 

Spongiform Encephalopathy Status of Member Countries,” May 22, 2007. 

http://www.oie.int/downld/SG/2007/A_RESO_2007.pdf. (accessed March 5, 2009). 

World Trade Organization (WTO). “Accessions—WTO welcomes Ukraine as a new member.” Press 

release, February 5, 2008. http://www.wto.org/english/news_e/pres08_e/pr511_e.htm. 

———. “Director-General—Lamy says new negotiating texts set stage for crucial July talks.” Press 

release, July 10, 2008. http://www.wto.org/english/news_e/pres08_e/pr536_e.htm. 

———. “Director-General—Lamy welcomes revised agriculture and NAMA negotiating texts.” Press 

release, February 8, 2008. http://www.wto.org/english/news_e/pres08_e/pr513_e.htm. 

———. “Director-General—Lamy welcomes revised agriculture and NAMA texts, considers next steps.” 

Press release, December 6, 2008. http://www.wto.org/english/news_e/pres08_e/pr543_e.htm. 

———. “Dispute Settlement: The Disputes—Chronological List of Dispute Cases.” 

http://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm (accessed various dates). 
Biblio-13

———. “Enhanced Integrated Framework—Enhanced Integrated Framework establishes an Executive 

Secretariat, welcomes Executive Director.” Press release, October 13, 2008. 

http://www.wto.org/english/news_e/pres08_e/pr541_e.htm. 

———. “Enhanced Integrated Framework Executive Secretariat—Institutional and Administrative 

Arrangements—Communication from the Director-General,” July 21, 2008. WT/GC/115. 

———. “Informal TNC Meeting at the Level of Head of Delegation—Chairman's Remarks,” January 31, 

2008. JOB(08)/2. 

———. “Informal TNC Meeting at the Level of Head of Delegation—Chairman's Remarks,” October 10, 

2008. JOB(08)/100. 

———. “Negotiations: agriculture and non-agricultural market access—Negotiating texts move Doha 

round closer to end game, says Lamy.” Press release 526, May 20, 2008. 

http://www.wto.org/english/news_e/pres08_e/pr526_e.htm. 

———. “Negotiations: agriculture and non-agricultural market access—Revised blueprints issued for 

final deal on agricultural and non-agricultural trade.” News item, May 19, 2008. 

http://www.wto.org/english/news_e/news08_e/ag_nama_may08_e.htm. 

———. “Ukraine becomes the WTO's 152nd member.” Press release, May 16, 2008. 

http://www.wto.org/english/news_e/news08_e/acc_urk_may08_e.htm. 

———. “WTO members reappoint Lamy for a second term.” Press release, April 30, 2009. 

———. Committee on Technical Barriers to Trade. “Minutes of the Meeting of 1-2 July 2008,” 

September 9, 2008. G/TBT/M/45. 

———. Dispute Settlement Body (DSB). “Dispute Settlement: Dispute DS27: European Communities—

Regime for the Importation, Sale and Distribution of Bananas.” Online summary prepared by the 

WTO Secretariat. http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds27_e.htm (accessed 

May, 14, 2009). 

———. DSB. “Dispute Settlement: Dispute DS267: United States—Subsidies on Upland Cotton.” Online 

summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds267_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS291: European Communities—Measures Affecting the 

Approval and Marketing of Biotech Products.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds291_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS294: United States—Laws, Regulations and Methodology 

for Calculating Dumping Margins (Zeroing).” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds294_e.htm (accessed May 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS316: European Communities—Measures Affecting Trade 

in Large Civil Aircraft.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds316_e.htm (accessed May 14, 2009). 
Biblio-14

———. DSB. “Dispute Settlement: Dispute DS320: United States—Continued Suspension of 

Obligations in the EC – Hormones Dispute.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds320_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS340: China—Measures Affecting Imports of Automobile 

Parts.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds340_e.htm (accessed February 27, 2009). 

———. DSB. “Dispute Settlement: Dispute DS343: United States—Measures Relating to Shrimp from 

Thailand.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds343_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS344: United States—Final Anti-dumping Measures on 

Stainless Steel from Mexico.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds344_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS345: United States—Customs Bond Directive for 

Merchandise Subject to Anti-dumping/Countervailing Duties.” Online summary prepared by the 

WTO Secretariat. http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds345_e.htm (accessed 

May 22, 2009). 

———. DSB. “Dispute Settlement: Dispute DS350: United States—Continued Existence and 

Application of Zeroing Methodology.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds350_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS353: United States—Measures Affecting Trade in Large 

Civil Aircraft – Second Complaint.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds353_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS360: India—Additional and Extra-Additional Duties on 

Imports from the United States.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds360_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS362: China—Measures Affecting the Protection and 

Enforcement of Intellectual Property Rights.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds362_e.htm (accessed February 27, 2009). 

———. DSB. “Dispute Settlement: Dispute DS363: China—Measures Affecting Trading Rights and 

Distribution Services for Certain Publications and Audiovisual Entertainment Products.” Online 

summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds363_e.htm (accessed February 27, 2009). 

———. DSB. “Dispute Settlement: Dispute DS373: China—Measures Affecting Financial Information 

Services and Foreign Financial Information Suppliers.” Online summary prepared by the WTO 

Secretariat. http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds373_e.htm (accessed 

February 27, 2009). 

———. DSB. “Dispute Settlement: Dispute DS375: European Communities and its Member States—

Tariff Treatment of Certain Information Technology Products.” Online summary prepared by the 

WTO Secretariat. http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds375_e.htm (accessed 

February 27, 2009). 
Biblio-15

———. DSB. “Dispute Settlement: Dispute DS379: United States—Definitive Anti-Dumping and 

Countervailing Duties on Certain Products from China.” Online summary prepared by the WTO 

Secretariat. http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds379_e.htm (accessed March 

11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS381: United States—Measures Concerning the 

Importation, Marketing and Sale of Tuna and Tuna Products.” Online summary prepared by the 

WTO Secretariat. http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds381_e.htm (accessed 

March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS382: United States—Anti-Dumping Administrative 

Reviews and Other Measures Related to Imports of Certain Orange Juice from Brazil.” Online 

summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds382_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS383: United States—Anti-Dumping Measures on 

Polyethylene Retail Carrier Bags from Thailand.” Online summary prepared by the WTO 

Secretariat. http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds383_e.htm (accessed March 

11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS384: United States—Certain Country of Origin Labeling 

(Cool) Requirements.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds384_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS386: United States—Certain Country of Origin Labeling 

(Cool) Requirements.” Online summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds386_e.htm (accessed March 11, 2009). 

———. DSB. “Dispute Settlement: Dispute DS387: China—Grants, Loans and Other Incentives.” Online 

summary prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds387_e.htm (accessed February 27, 2009). 

———. DSB. “Dispute Settlement: Dispute DS389: European Communities—Certain Measures 

Affecting Poultry Meat and Poultry Meat Products from the United States.” Online summary 

prepared by the WTO Secretariat. 

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds389_e.htm (accessed March 13, 2009). 

———. General Council. “Agenda Item 1 — Report by the Chairman of the Trade Negotiations 

Committee,” February 3, 2009. JOB(09)/5. 

———. General Council. “Annual Report (2008),” January 19, 2009. WT/GC/117. 

———. General Council. “General Council,” May 7, 2008. JOB(08)/37. 

———. Trade Negotiations Committee. “Chairman's Introductory Statement,” December 17, 2008. 

JOB(08)/134. 

———. Trade Negotiations Committee. “Statement by the Chairman,” July 30, 2008. JOB(08)/94. 

APPENDIX TABLES 

A-3

TABLE A.1 U.S. merchandise trade with world, by SITC codes (revision 3), 2006-08 

SITC Code No. Description 2006 2007 20

Millions of $ 

Exports: 

0 Food and live animals 52,174 65,966 83,2

1 Beverages and tobacco 4,911 5,113 5,1

2 Crude materials, inedible, except fuels 49,244 61,342 75,5

3 Mineral fuels, lubricants and related materials 34,733 41,456 75,8

4 Animal and vegetable oils, fats and waxes 1,985 2,887 4,35 Chemicals and related products, n.e.s. 135,051 154,184 174,16 Manufactured goods classified chiefly by material 90,260 98,289 107,7

7 Machinery and transport equipment 423,845 462,700 477,1

8 Miscellaneous manufactured articles 99,475 107,227 111,1

9 Commodities and transactions not classified elsewhere in the SITC 37,806 47,193 55,6

Total all exports commodities 929,486 1,046,358 1,169,8

Imports: 

0 Food and live animals 56,014 60,775 66,0

1 Beverages and tobacco 15,348 16,754 16,6

2 Crude materials, inedible, except fuels 32,820 33,068 36,9

3 Mineral fuels, lubricants and related materials 315,707 340,462 468,44 Animal and vegetable oils, fats and waxes 2,854 3,440 5,35 Chemicals and related products, n.e.s. 149,567 162,850 187,76 Manufactured goods classified chiefly by material 222,810 226,704 230,6

7 Machinery and transport equipment 708,611 739,143 718,3

8 Miscellaneous manufactured articles 275,580 292,897 288,99 Commodities and transactions not classified elsewhere in the SITC 65,741 66,770 71,4

Total all imports commodities 1,845,053 1,942,863 2,090,4

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specified.” 
A-4

TABLE A.2 U.S. private services exports to the world, by category, 2006–08 

Service industry 2006 2007 2008 

% change 

2007–08 

Millions of $ 

Travel 85,720 96,712 110,469 14.2 

Royalties and license fees 72,191 82,614 88,212 6.8 

Business, professional, and technical services 89,692 107,675 120,008 11.5 

Financial services 47,439 58,266 58,241 0.0 

Port services 28,915 31,990 37,457 17.1 

Passenger fares 22,036 25,586 31,638 23.7 

Freight 17,408 19,596 21,950 12.0 

Education 14,645 15,732 16,753 6.5 

Insurance services 10,095 10,286 11,248 9.4 

Telecommunications 7,278 8,283 9,716 17.3 

Other 19,902 23,240 22,368 -3.8 

Total 415,321 479,980 528,060 10.0 

Source: USDOC, BEA, “Private Services Transactions,” table 3a, from Interactive U.S. International 

Accounts Data, March 18, 2009 (accessed April 9, 2009). 

Note: Data for 2008 are preliminary. 
TABLE A.3 U.S. private services imports from the world, by category, 2006–08 

2006 2007 2008 

% change 

2007–08 

Millions of $ 

Travel 72,104 76,167 80,000 5.0 

Royalties and license fees 23,777 25,048 26,468 5.7 

Business, professional, and technical services 61,068 68,763 75,337 9.6 

Financial services 14,242 18,928 18,757 -0.9 

Port services 19,562 21,474 26,642 24.1 

Passenger fares 27,501 28,486 32,429 13.8 

Freight 45,700 45,576 45,199 -0.8 

Education 4,465 4,523 4,647 2.7 

Insurance services 37,373 42,761 44,479 4.0 

Telecommunications 6,367 7,334 7,413 1.1 

Other 1,706 2,066 2,410 16.7 

 Total 313,865 341,126 363,781 6.6 

Source: USDOC, BEA, “Private Services Transactions,” table 3a, from Interactive U.S. International 

Accounts Data, March 18, 2009 (accessed April 9, 2009). 

Note: Data for 2008 are preliminary. 

A-5
TABLE A.4 Antidumping cases active in 2008, by USITC investigation number 

USITC investigation number Product 

Country of origin 

Date of institution 

USITC prelim 

ITAa

prelim 

ITA final 

(Affirmative = A; Negati

731-TA-1110 Sodium hexametaphosphate China 02/08/07 A A A 731-TA-1111 Glycine India 03/30/07 A A A 

731-TA-1112 Glycine Japan 03/30/07 A A A 

731-TA-1113 Glycine Korea 03/30/07 A A A 

731-TA-1114 Steel nails China 05/29/07 A A A 

731-TA-1115 Steel nails United Arab Emirates 05/29/07 A A N 

731-TA-1116 Circular welded carbon-quality steel pipe China 06/07/07 A A A 

731-TA-1117 Certain off-the-road tires China 06/18/07 A A A 

731-TA-1118 Light-walled rectangular pipe and tube China 06/27/07 A A A 

731-TA-1119 Light-walled rectangular pipe and tube Korea 06/27/07 A A A 

731-TA-1120 Light-walled rectangular pipe and tube Mexico 06/27/07 A A A 

731-TA-1121 Light-walled rectangular pipe and tube Turkey 06/27/07 A A A 

731-TA-1122 Laminated woven sacks China 06/28/07 A A A 

731-TA-1123 Steel wire garment hangers China 07/31/07 A A A 

731-TA-1124 Electrolytic manganese dioxide Australia 08/22/07 A A A 

731-TA-1125 Electrolytic manganese dioxide China 08/22/07 A A A 

731-TA-1126 Lightweight thermal paper China 09/19/07 A A A 

731-TA-1127 Lightweight thermal paper Germany 09/19/07 A A A 

731-TA-1129 Raw flexible magnets China 09/21/07 A A A 

731-TA-1130 Raw flexible magnets Taiwan 09/21/07 A A A 

731-TA-1131 Polyethylene terephthalate film, sheet, and strip Brazil 09/28/07 A A A 

731-TA-1132 Polyethylene terephthalate film, sheet, and strip China 09/28/07 A A A 731-TA-1133 Polyethylene terephthalate film, sheet, and strip Thailand 09/28/07 A N A 

731-TA-1134 Polyethylene terephthalate film, sheet, and strip United Arab Emirates 09/28/07 A A A 731-TA-1135 Sodium metal France 10/23/07 A A A 

731-TA-1136 Sodium nitrite China 11/08/07 A A A 

731-TA-1137 Sodium nitrite Germany 11/08/07 A A A 

731-TA-1138 ATMP/HEDP China 12/31/07 (

d) (

d) (

d) 

731-TA-1139 ATMP/HEDP India 12/31/07 (

d) (

d) (

d) 

731-TA-1140 Uncovered innerspring units China 12/31/07 A A A 

731-TA-1141 Uncovered innerspring units South Africa 12/31/07 A A A 

731-TA-1142 Uncovered innerspring units Vietnam 12/31/07 A A A 

731-TA-1143 Small diameter graphite electrodes China 01/17/08 A A (

e) 

731-TA-1144 Welded stainless steel pressure pipe China 01/30/08 A A (

e) 

731-TA-1145 Certain steel threaded rod China 03/05/08 A A (

e) 

731-TA-1146 HEDP China 03/19/08 A A (

e) 

731-TA-1147 HEDP India 03/19/08 A A (

e) 

731-TA-1148 Frontseating service valves China 03/19/08 A A (

e) 

731-TA-1149 Circular welded carbon quality steel line pipe China 04/03/08 A A (

e) 

731-TA-1150 Circular welded carbon quality steel line pipe Korea 04/03/08 A A (

d) 

731-TA-1151 Citric acid and certain citrate salts Canada 04/14/08 A A (

e) 

731-TA-1152 Citric acid and certain citrate salts China 04/14/08 A A (

e) 

731-TA-1153 Tow-behind lawn groomers China 06/24/08 A (

e) (

e) 

731-TA-1154 Certain kitchen appliance shelving and racks China 07/31/08 A (

e) (

e) 

731-TA-1155 Commodity matchbooks India 10/29/08 A (

e) (

e) 

Source: U.S. International Trade Commission. 

a International Trade Administration, U.S. Department of Commerce. b For cases in which the final action was taken by the ITA, the date shown is the Federal Register notice date of that action. For cases in which the fina

the date of the USITC notification of Commerce is shown. 

c Not applicable. dThe investigation was terminated or discontinued following withdrawal of the petition. ePending as of Dec. 31, 2008. 

A-6
A-7

TABLE A.5 Antidumping duty orders in effect as of December 31, 2008 

Country Commodity Effective date of original action 

Argentina: 

Honey Dec. 10, 2001 

Barbed wire and barbless wire strand Nov. 13, 1985 

Australia: 

 Electrolytic manganese dioxide Oct. 7, 2008 

Belarus: 

Steel concrete reinforcing bars Sept. 7, 2001 

Belgium: 

Stainless steel plate in coils May 21, 1999 

Brazil: 

Polyethylene terephthalate film, sheet, and strip Nov. 10, 2008 

Certain orange juice Mar. 9, 2006 

Frozen or canned warmwater shrimp and prawns Feb. 1, 2005 

Prestressed concrete steel wire strand Jan. 28, 2004 

Carbon and certain alloy steel wire rod Oct. 29, 2002 

Hot-rolled carbon steel flat products July 6, 1999 

Stainless steel bar Feb. 21, 1995 

Silicomanganese Dec. 22, 1994 

Circular welded non-alloy steel pipe Nov. 2, 1992 

Carbon steel butt-weld pipe fittings Dec. 17, 1986 

Iron construction castings May 9, 1986 

Canada: 

Iron construction castings Mar. 5, 1986 

Chile: 

Preserved mushrooms Dec. 2, 1998 

China: 

Lightweight thermal paper Nov. 24, 2008 

Polyethylene terephthalate film, sheet, and strip Nov. 10, 2008 

Electrolytic manganese dioxide Oct. 7, 2008 

Steel wire garment hangers Oct. 6, 2008 

Raw flexible magnets Sept. 17, 2008 

Off-the-road tires Sept. 4, 2008 

Sodium nitrite Aug. 27, 2008 

Laminated woven sacks Aug. 7, 2008 

Light-walled rectangular pipe and tube Aug. 5, 2008 

Steel nails Aug. 1, 2008 

Circular welded carbon-quality steel pipe July 22, 2008 

Sodium hexametaphosphate Mar. 19, 2008 

Certain polyester staple fiber June 1, 2007 

Certain activated carbon April 27, 2007 

Certain lined paper school supplies Sept. 28, 2006 

Artist= canvas June 1, 2006 

Chlorinated isocyanurates June 24, 2005 

Magnesium April 15, 2005 

Tissue paper Mar. 30, 2005 

Frozen or canned warmwater shrimp and prawns Feb. 1, 2005 

Crepe paper Jan. 25, 2005 

Wooden bedroom furniture Jan. 4, 2005 

Carbazole violet pigment 23 Dec. 29, 2004 

Hand trucks Dec. 2, 2004 

Polyethylene retail carrier bags Aug. 9, 2004 

Ironing tables Aug. 6, 2004 

Tetrahydrofurfuryl alcohol Aug. 6, 2004 

Color television receivers June 3, 2004 

Malleable iron pipe fittings Dec. 12, 2003 

Refined brown aluminum oxide Nov. 19, 2003 

Barium carbonate Oct. 1, 2003 

Polyvinyl alcohol Oct. 1, 2003 

Saccharin July 9, 2003 
A-8

TABLE A.5 Antidumping duty orders in effect as of December 31, 2008BContinued

Country Commodity Effective date of original action 

ChinaBContinued: 

Ferrovanadium Jan. 28, 2003 

Folding metal tables and chairs June 27, 2002 

Folding gift boxes Jan. 8, 2002 

Honey Dec. 10, 2001 

Hot-rolled carbon steel flat products Nov. 29, 2001 

Pure magnesium (granular) Nov. 19, 2001 

Foundry coke Sept. 17, 2001 

Steel concrete reinforcing bars Sept. 7, 2001 

Non-frozen apple juice concentrate June 5, 2000 

Preserved mushrooms Feb. 19, 1999 

Carbon steel plate Oct. 24, 1997 

Crawfish tail meat Sept. 15, 1997 

Persulfates July 7, 1997 

Furfuryl alcohol June 21, 1995 

Pure magnesium (ingot) May 12, 1995 

Glycine Mar. 29, 1995 

Cased pencils Dec. 28, 1994 

Silicomanganese Dec. 22, 1994 

Paper clips Nov. 25, 1994 

Fresh garlic Nov. 16, 1994 

Helical spring lock washers Oct. 19, 1993 

Sulfanilic acid Aug. 19, 1992 

Carbon steel butt-weld pipe fittings July 6, 1992 

Sparklers June 18, 1991 

Silicon metal June 10, 1991 

Axes and adzes Feb. 19, 1991 

Bars and wedges Feb. 19, 1991 

Hammers and sledges Feb. 19, 1991 

Picks and mattocks Feb. 19, 1991 

Tapered roller bearings June 15, 1987 

Porcelain-on-steel cooking ware Dec. 2, 1986 

Petroleum wax candles Aug. 28, 1986 

Iron construction castings May 9, 1986 

Natural bristle paint brushes Feb. 14, 1986 

Barium chloride Oct. 17, 1984 

Chloropicrin Mar. 22, 1984 

Potassium permanganate Jan. 31, 1984 

Greige polyester cotton printcloth Sept. 16, 1983 

Finland: 

Carboxymethylcellulose July 11, 2005 

France: 

Low enriched uranium Feb. 13, 2002 

Ball bearings May 15, 1989 

Brass sheet and strip Mar. 6, 1987 

Sorbitol Apr. 9, 1982 

Germany: 

Lightweight thermal paper Nov. 24, 2008 

Sodium nitrite Aug. 27, 2008 

Stainless steel sheet and strip July 27, 1999 

Seamless pipe Aug. 3, 1995 

Corrosion-resistant carbon steel flat products Aug. 19, 1993 

Ball bearings May 15, 1989 

Brass sheet and strip Mar. 6, 1987 

India: 

Certain lined paper school supplies Sept. 28, 2006 

Frozen or canned warm-water shrimp and 

prawns 

Feb. 1, 2005 

Carbazole violet pigment 23 Dec. 29, 2004 
A-9

TABLE A.5 Antidumping duty orders in effect as of December 31, 2008BContinued

Country Commodity Effective date of original action 

IndiaBContinued

Prestressed concrete steel wire strand Jan. 28, 2004 

Polyethylene terephthalate (PET) film July 1, 2002 

Silicomanganese May 23, 2002 

Hot-rolled carbon steel flat products Dec. 3, 2001 

Carbon steel plate Feb. 10, 2000 

Preserved mushrooms Feb. 19, 1999 

Stainless steel bar Feb. 21, 1995 

Forged stainless steel flanges Feb. 9, 1994 

Stainless steel wire rod Dec. 1, 1993 

Sulfanilic acid Mar. 2, 1993 

Welded carbon steel pipe May 12, 1986 

Indonesia: 

Certain lined paper school supplies Sept. 28, 2006 

Carbon and certain alloy steel wire rod Oct. 29, 2002 

Hot-rolled carbon steel flat products Dec. 3, 2001 

Steel concrete reinforcing bars Sept. 7, 2001 

Carbon steel plate Feb. 10, 2000 

Preserved mushrooms Feb. 19, 1999 

Iran: 

Raw in-shell pistachios July 17, 1986 

Italy: 

Stainless steel butt-weld pipe fittings Feb. 23, 2001 

Carbon steel plate Feb. 10, 2000 

Stainless steel sheet and strip July 27, 1999 

Stainless steel plate in coils May 21, 1999 

Stainless steel wire rod Sept. 15, 1998 

Pasta July 24, 1996 

Ball bearings May 15, 1989 

Granular polytetrafluoroethylene resin Aug. 30, 1988 

Brass sheet and strip Mar. 6, 1987 

Pressure sensitive plastic tape Oct. 21, 1977 

Japan: 

Superalloy degassed chromium Dec. 22, 2005 

Polyvinyl alcohol July 2, 2003 

Welded large diameter line pipe Dec. 6, 2001 

Tin- and chromium-coated steel sheet Aug. 28, 2000 

Large diameter seamless pipe June 26, 2000 

Small diameter seamless pipe June 26, 2000 

Carbon steel plate Feb. 10, 2000 

Stainless steel sheet and strip July 27, 1999 

Hot-rolled carbon steel flat products June 29, 1999 

Stainless steel wire rod Sept. 15, 1998 

Clad steel plate July 2, 1996 

Stainless steel bar Feb. 21, 1995 

Gray portland cement and clinker May 10, 1991 

Ball bearings May 15, 1989 

Granular polytetrafluoroethylene resin Aug. 24, 1988 

Brass sheet and strip Aug. 12, 1988 

Stainless steel butt-weld pipe fittings Mar. 25, 1988 

Carbon steel butt-weld pipe fittings Feb. 10, 1987 

Prestressed concrete steel wire strand Dec. 8, 1978 

Polychloroprene rubber Dec. 6, 1973 

Kazakhstan: 

Silicomanganese May 23, 2002 

Korea: 

Light-walled rectangular pipe and tube Aug. 5, 2008 

Prestressed concrete steel wire strand Jan. 28, 2004 

Polyvinyl alcohol Oct. 1, 2003 

Polyester staple fiber May 25, 2000 
A-10

TABLE A.5 Antidumping duty orders in effect as of December 31, 2008BContinued

Country Commodity Effective date of original action 

KoreaBContinued

Carbon steel plate Feb. 10, 2000 

Stainless steel sheet and strip July 27, 1999 

Stainless steel plate in coils May 21, 1999 

Stainless steel wire rod Sept. 15, 1998 

Corrosion-resistant carbon steel flat products Aug. 19, 1993 

Stainless steel butt-weld pipe fittings Feb. 23, 1993 

Welded ASTM A-312 stainless steel pipe Dec. 30, 1992 

Circular welded non-alloy steel pipe Nov. 2, 1992 

Polyethylene terephthalate (PET) film June 5, 1991 

Top-of-the-stove stainless steel cooking ware Jan. 20, 1987 

Latvia: 

Steel concrete reinforcing bars Sept. 7, 2001 

Malaysia: 

Polyethylene retail carrier bags Aug. 9, 2004 

Stainless steel butt-weld pipe fittings Feb. 23, 2001 

Mexico: 

Light-walled rectangular pipe and tube Aug. 5, 2008 

Lemon juice (suspended) Sept. 21, 2007 

Carboxymethylcellulose July 11, 2005 

Prestressed concrete steel wire strand Jan. 28, 2004 

Carbon and certain alloy steel wire rod Oct. 29, 2002 

Stainless steel sheet and strip July 27, 1999 

Fresh tomatoes (suspended) Nov. 1, 1996 

Circular welded non-alloy steel pipe Nov. 2, 1992 

Gray portland cement and clinker Aug. 30, 1990 

Moldova: 

Carbon and certain alloy steel wire rod Oct. 29, 2002 

Steel concrete reinforcing bars Sept. 7, 2001 

Netherlands: 

Carboxymethylcellulose July 11, 2005 

Norway: 

Fresh and chilled Atlantic salmon Apr. 12, 1991 

Philippines: 

Stainless steel butt-weld pipe fittings Feb. 23, 2001 

Poland: 

Steel concrete reinforcing bars Sept. 7, 2001 

Romania: 

Small diameter seamless pipe Aug. 10, 2000 

Russia: 

Magnesium April 15, 2005 

Silicon metal Mar. 26, 2003 

Ammonium nitrate (suspended) May 19, 2000 

Hot-rolled carbon steel flat products 

(suspended) 

July 12, 1999 

Carbon steel plate (suspended) Oct. 24, 1997 

Ferrovanadium and nitrided vanadium July 10, 1995 

Uranium (suspended) Oct. 16, 1992 

Solid urea July 14, 1987 

South Africa: 

Uncovered innerspring units Dec. 11, 2008 

Ferrovanadium Jan. 28, 2003 

Stainless steel plate in coils May 21, 1999 

Spain: 

Chlorinated isocyanurates June 24, 2005 

Stainless steel wire rod Sept. 15, 1998 

Stainless steel bar Mar. 2, 1995 

Sweden: 

Carboxymethylcellulose July 11, 2005 
A-11

TABLE A.5 Antidumping duty orders in effect as of December 31, 2008BContinued

Country Commodity Effective date of original action 

Taiwan: 

Raw flexible magnets Sept. 17, 2008 

Polyethylene terephthalate (PET) film July 1, 2002 

Hot-rolled carbon steel flat products Nov. 29, 2001 

Polyester staple fiber May 25, 2000 

Stainless steel sheet and strip July 27, 1999 

Stainless steel plate in coils May 21, 1999 

Stainless steel wire rod Sept. 15, 1998 

Forged stainless steel flanges Feb. 9, 1994 

Helical spring lockwashers June 28, 1993 

Stainless steel butt-weld pipe fittings June 16, 1993 

Welded ASTM A-312 stainless steel pipe Dec. 30, 1992 

Circular welded non-alloy steel pipe Nov. 2, 1992 

Light-walled rectangular pipe Mar. 27, 1989 

Carbon steel butt-weld pipe fittings Dec. 17, 1986 

Porcelain-on-steel cooking ware Dec. 2, 1986 

Small diameter carbon steel pipe May 7, 1984 

Thailand: 

Frozen or canned warm-water shrimp and 

prawns 

Feb. 1, 2005 

Polyethylene retail carrier bags Aug. 9, 2004 

Prestressed concrete steel wire strand Jan. 28, 2004 

Hot-rolled carbon steel flat products Nov. 29, 2001 

Carbon steel butt-weld pipe fittings July 6, 1992 

Welded carbon steel pipe Mar. 11, 1986 

Trinidad and Tobago: 

Carbon and certain alloy steel wire rod Oct. 29, 2002 

Turkey: 

Light-walled rectangular pipe and tube May 30, 2008 

Steel concrete reinforcing bars Apr. 17, 1997 

Pasta July 24, 1996 

Welded carbon steel pipe May 15, 1986 

Ukraine: 

Carbon and certain alloy steel wire rod Oct. 29, 2002 

Hot-rolled carbon steel flat products Nov. 29, 2001 

Ammonium nitrate Sept. 12, 2001 

Steel concrete reinforcing bars Sept. 7, 2001 

Carbon steel plate (suspended) Oct. 24, 1997 

Silicomanganese Oct. 31, 1994 

Solid urea July 14, 1987 

United Arab Emirates: 

Polyethylene terephthalate film, sheet, and strip Nov. 10, 2008 

United Kingdom: 

Ball bearings May 15, 1989 

Venezuela: 

Silicomanganese May 23, 2002 

Vietnam: 

Uncovered innerspring units Dec. 11, 2008 

Frozen or canned warm-water shrimp and 

prawns 

Feb. 1, 2005 

Frozen fish fillets Aug. 12, 2003 

Source: U.S. International Trade Commission. 
A-12

TABLE A.6 Countervailing duty cases active in 2008, by USITC investigation number USITC investigation number Product 

County of origin 

Date of institution 

USITC prelim 

ITAaprelim 

ITA final 

(Affirmative = A; Negative 

701-TA-447 Circular welded carbon-quality steel pipe China 06/07/07 A A A 701-TA-448 Off-the-road tires China 06/18/07 A A A 701-TA-449 Light-walled rectangular pipe and tube China 06/27/07 A A A 701-TA-450 Laminated woven sacks China 06/28/07 A A A 701-TA-451 Lightweight thermal paper China 09/19/07 A A A 701-TA-452 Raw flexible magnets China 09/21/07 A A A 

701-TA-453 Sodium nitrite China 11/08/07 A A A 

701-TA-454 Welded stainless steel pressure pipe China 01/30/08 A A (c) 

701-TA-455 Circular welded carbon quality steel line pipe China 04/03/08 A A A 701-TA-456 Citric acid and certain citrate salts China 04/14/08 A A (c) 701-TA-457 Tow-behind lawn groomers China 06/24/08 A A (c) 701-TA-458 Kitchen appliance shelving and racks China 07/31/08 A (c) (c) 701-TA-459 Commodity matchbooks India 10/29/08 A (c) (c) Source: U.S. International Trade Commission. 

a International Trade Administration, U.S. Department of Commerce. b The date of the USITC notification of Commerce is shown. c Pending as of Dec. 31, 2008. 
A-13

TABLE A.7 Countervailing duty orders in effect as of December 31, 2008 

Country Commodity Effective date of original action 

Argentina: 

 Honey Dec. 10, 2001 

Belgium: 

 Stainless steel plate in coils May 11, 1999 

Brazil: 

 Carbon and certain alloy steel wire rod Oct. 22, 2002 

 Hot-rolled carbon steel flat products July 6, 1999 

 Heavy iron construction castings May 15, 1986 

China: 

 Lightweight thermal paper Nov. 24, 2008 

 Raw flexible magnets Sept. 17, 2008 

 Off-the-road tires Sept. 4, 2008 

 Sodium nitrite Aug. 27, 2008 

 Laminated woven sacks Aug. 7, 2008 

 Light-walled rectangular pipe and tube Aug. 5, 2008 

 Circular welded carbon-quality steel pipe July 22, 2008 

India: 

 Certain lined paper school supplies Sept. 28, 2006 

 Carbazole violet pigment 23 Dec. 29, 2004 

 Prestressed concrete steel wire strand Feb. 4, 2004 

 Polyethylene terephthalate (PET) film July 1, 2002 

 Hot-rolled carbon steel flat products Dec. 3, 2001 

 Carbon steel plate Feb. 10, 2000 

 Sulfanilic acid Mar. 2, 1993 

Indonesia: 

 Certain lined paper school supplies Sept. 28, 2006 

 Hot-rolled carbon steel flat products Dec. 3, 2001 

 Carbon steel plate Feb. 10, 2000 

Iran: 

 Roasted in-shell pistachios Oct. 7, 1986 

 Raw in-shell pistachios Mar. 11, 1986 

Italy: 

 Carbon steel plate Feb. 10, 2000 

 Pasta July 24, 1996 

Korea: 

 Carbon steel plate Feb. 10, 2000 

 Stainless steel sheet and strip Aug. 6, 1999 

 Corrosion-resistant carbon steel flat products Aug. 17, 1993 

 Top-of-the-stove stainless steel cooking ware Jan. 20, 1987 

Norway: 

 Fresh and chilled Atlantic salmon Apr. 12, 1991 

South Africa: 

 Stainless steel plate in coils May 11, 1999 

Thailand: 

 Hot-rolled carbon steel flat products Dec. 3, 2001 

Turkey: 

 Pasta July 24, 1996 

 Welded carbon steel pipe Mar. 7, 1986 

Source: U.S. International Trade Commission. 
A-14

TABLE A.8 Reviews of existing antidumping and countervailing duty orders completed in 2008, by date of completion 

USITC 

investigation 

number Product 

Country of 

origin 

Completion 

datea Action 

701-TA-413 Stainless steel bar Italy 01/25/08 Revoked 

731-TA-913 Stainless steel bar France 01/25/08 Revoked 

731-TA-914 Stainless steel bar Germany 01/25/08 Revoked 

731-TA-915 Stainless steel bar Italy 01/25/08 Revoked 

731-TA-916 Stainless steel bar Korea 01/25/08 Revoked 

731-TA-918 Stainless steel bar United Kingdom 01/25/08 Revoked 

731-TA-749 Persulfates China 03/31/08 Continued 

701-TA-415 Polyethylene terephthalate film, sheet, and strip India 04/25/08 Continued 

731-TA-933 Polyethylene terephthalate film, sheet, and strip India 04/25/08 Continued 

731-TA-934 Polyethylene terephthalate film, sheet, and strip Taiwan 04/25/08 Continued 

731-TA-744 Brake rotors China 06/11/08 Revoked 

701-TA-417 Carbon and certain alloy steel wire rod Brazil 06/17/08 Continued 

731-TA-953 Carbon and certain alloy steel wire rod Brazil 06/17/08 Continued 

731-TA-954 Carbon and certain alloy steel wire rod Canada 06/17/08 Revoked 

731-TA-957 Carbon and certain alloy steel wire rod Indonesia 06/17/08 Continued 

731-TA-958 Carbon and certain alloy steel wire rod Mexico 06/17/08 Continued 

731-TA-959 Carbon and certain alloy steel wire rod Moldova 06/17/08 Continued 

731-TA-961 Carbon and certain alloy steel wire rod Trinidad and Tobago 06/17/08 Continued 

731-TA-962 Carbon and certain alloy steel wire rod Ukraine 06/17/08 Continued 

731-TA-991 Silicon metal Russia 06/30/08 Continued 

731-TA-990 Non-malleable cast iron pipe fittings China 07/24/08 Continued 

731-TA-986 Ferrovanadium China 11/24/08 Continued 

731-TA-987 Ferrovanadium South Africa 11/24/08 Continued 

731-TA-752 Crawfish tail meat China 11/25/08 Continued 

731-TA-745 Steel concrete reinforcing bar Turkey 12/15/08 Revoked 

Source: U.S. International Trade Commission. 

 a The completion date shown is the date of the USITC notification of Commerce. 
A

-15

TABLE A.9 Section 337 investigations and related proceedings completed by the U.S. International Trade Commission during 2008 and 

December 31, 2008 Status of Investigation Article Countrya Commission 

Completed: 337-TA-474 Certain Recordable Compact Discs 

and Rewritable Compact Discs 

No foreign respondents One related 

proceeding; opinion. 

337-TA-487 Certain Agricultural Vehicles and 

Components Thereof 

Canada, Germany, China, France, Netherlands 

Terminated bviolation. b

337-TA-551 Certain Laser Bar Code Scanners and 

Scan Engines, Components Thereof and Products Containing Same 

China One related 

proceeding; terminated b

337-TA-558 Certain Personal Computer Consumer 

Electronic Convergent Devices, Components Thereof, and Products Containing Same 

Taiwan Terminated b

complaint. 

337-TA-567 Certain Foam Footwear Canada Terminated b

violation. 

337-TA-569 Certain Endoscopic Probes for Use in 

Argon Plasma Coagulation Systems 

Germany Terminated b

violation. 

337-TA-571 Certain L-Lysine Feed Products, Their 

Methods of Production and Genetic Constructs for Production 

Hong Kong, China Terminated b

violation. 

337-TA-574 Certain Equipment for 

Telecommunications or Data Communications Networks, Including Routers, Switches, and Hubs, and Components Thereof 

France Terminated b

agreement. 

337-TA-578 Certain Mobile Telephone Handsets, 

Wireless Communication Devices, and Components Thereof 

Finland Terminated b

violation. 
A

-16

TABLE A.9 Section 337 investigations and related proceedings completed by the U.S. International Trade Commission during 2008 and 

December 31, 2008 - ContinuedStatus of Investigation Article Countrya Commission 

Completed – Continued:337-TA-586 Certain Stringed Musical Instruments 

and Components Thereof 

France, Germany Terminated b

violation. 

337-TA-587 Certain Connecting Devices ("Quick 

Clamps") for Use with Modular Compressed Air Conditioning Units, Including Filters, Regulators, and Lubricators ("FRL'S") That Are Part of Larger Pneumatic Systems and the FRL Units They Connect 

Japan, China Terminated b

violation. 

337-TA-588 Certain Digital Multimeters, and 

Products with Multimeter Functionality 

China, Hong Kong Issued a gen

cease and de

337-TA-589 Certain Switches and Products 

Containing Same 

Taiwan, Japan Terminated b

violation. 

337-TA-593 Certain Digital Cameras and 

Component Parts Thereof 

No foreign respondents Terminated b

agreement. 

337-TA-595 Certain Dynamic Random Access 

Memory Devices and Products Containing Same 

Korea Terminated b

agreement. 

337-TA-596 Certain GPS Chips, Associated 

Software and Systems, and Products Containing Same 

No foreign respondents Terminated b

violation. 

337-TA-597 Certain Bassinet Products No foreign respondents Terminated b

337-TA-598 Certain Unified Communications 

Systems, Products Used With Such Systems, and Components Thereof 

France Terminated b

violation. 
A

-17

TABLE A.9 Section 337 investigations and related proceedings completed by the U.S. International Trade Commission during 2008 and 

December 31, 2008 – ContinuedStatus of Investigation Article Countrya Commission 

Completed - Continued:337-TA-606 Certain Personal Computers and Digital 

Display Devices 

Taiwan Terminated b

agreement. 

337-TA-607 Certain Semiconductor Devices, DMA 

Systems, and Products Containing Same 

Japan Terminated b

agreement. 

337-TA-608c Certain Nitrile Gloves Australia, China, Indonesia, Malaysia, 

Thailand 

Terminated bviolation. 

337-TA-609 Certain Buffer Systems and Components 

Thereof Used in Container Processing Lines 

Germany Terminated b

agreement. 

337-TA-610 Certain Endodontic Instruments France Terminated b

complaint. 

337-TA-611 Certain Magnifying Loupe Products and 

Components Thereof 

China Issued a limi

337-TA-612c Certain Nitrile Rubber Gloves Malaysia Terminated b

violation. 

337-TA-616 Certain Hard Disk Drives, Components 

Thereof, and Products Containing the Same 

No foreign respondents Terminated b

complaint. 

337-TA-618 Certain Computer Systems, Printers and 

Scanners 

No foreign respondents Terminated b

agreement. 

337-TA-620 Certain Low Antimony Phosphoric Acid Japan Terminated b

agreement. 

337-TA-622 Certain Base Plugs No foreign respondents Terminated b

agreement. 

337-TA-633 Certain Acetic Acid China Terminated b

complaint. 

337-TA-635 Certain Pesticides and Products 

Containing Clothianidin 

Switzerland, India Terminated b

agreement. 

337-TA-638 Certain Intermediate Bulk Containers China Issued a limi337-TA-639 Certain Spa Cover Lift Frames Hong Kong Terminated b
A

-18

TABLE A.9 Section 337 investigations and related proceedings completed by the U.S. International Trade Commission during 2008 and December 31, 2008 - ContinuedStatus of Investigation Article Countrya Commission dCompleted - Continued:337-TA-642 Certain Catheters, Consoles and Other 

Apparatus for Cryosurgery, and Components Thereof 

Canada Terminated ba

agreement. 

337-TA-647 Certain Hand-Held Meat Tenderizers No foreign respondents Terminated ba

complaint. 

337-TA-652 Certain Rubber Antidegradants, 

Antidegradant Intermediates, and Products Containing the Same 

China, Korea Terminated ba

violation. 

337-TA-656 Certain Integrated Circuits and 

Products Containing Same 

No foreign respondents Terminated ba

agreement. 

Pending: 337-TA-501 Certain Encapsulated Integrated 

Circuit Devices and Products Containing Same 

Malaysia Pending befor

337-TA-533 Certain Rubber Antidegradants, 

Components Thereof, and Products Containing Same 

China, Korea Pending befor

337-TA-543 Certain Baseband Processor Chips 

and Chipsets, Transmitter and Receiver (Radio) Chips, Power Control Chips, and Products Containing Same, Including Cellular Telephone Handsets 

No foreign respondents Two related (a

one enforcemeremand pendin

337-TA-545 Certain Laminated Floor Panels Canada One related (a

enforcement aproceeding peCommission. 

337-TA-564 Certain Voltage Regulators, 

Components Thereof and Products Containing Same 

No foreign respondents One related (an

proceeding pen
A

-19

TABLE A.9 Section 337 investigations and related proceedings completed by the U.S. International Trade Commission during 2008 and 

December 31, 2008 - Continued

Status of Investigation Article Countrya CommissioPending - Continued:337-TA-565 Certain Ink Cartridges and Components 

Thereof 

China, Hong Kong One related 

enforcemebefore the 

337-TA-582 Certain Hydraulic Excavators and 

Components Thereof 

Canada Pending be

337-TA-601d Certain 3G Wideband Code Division 

Multiple Access (WCDMA) Handsets and Components Thereof 

Korea Pending be

337-TA-602 Certain GPS Devices and Products 

Containing Same 

Taiwan Pending be

337-TA-604 Certain Sucralose, Sweeteners 

Containing Sucralose, and Related Intermediate Compounds Thereof 

China, United Kingdom, Hong Kong Pending be

337-TA-605 Certain Semiconductor Chips with 

Minimized Chip Package Size and Products Containing Same 

Canada, Switzerland Pending be

337-TA-613d Certain 3G Mobile Handsets and 

Components Thereof 

Finland Pending be

337-TA-615 Certain Ground Fault Circuit 

Interrupters and Products Containing the Same 

China Pending be

337-TA-617 Certain Digital Televisions and Certain 

Products Containing Same and Methods of Using Same 

Taiwan, Hong Kong, China Pending be

337-TA-619 Certain Flash Memory Controllers, 

Drives, Memory Cards, and Media Players and Products Containing Same 

Taiwan, Hong Kong, China, Japan, British Virgin Islands, France, Ireland, Korea 

Pending be

337-TA-621 Certain Probe Card Assemblies, 

Components Thereof and Certain Tested DRAM and NAND Flash Memory Devices and Products Containing Same 

Japan, Korea Pending be
A

-20

TABLE A.9 Section 337 investigations and related proceedings completed by the U.S. International Trade Commission during 2008 and December 31, 2008 - Continued

Status of Investigation Article Countrya Commissio

Pending - Continued: 337-TA-623 Certain R-134a Coolant (Otherwise 

Known as 1,1,1,2-Tetrafluoroethane) 

China Pending be

337-TA-624 Certain Systems for Detecting and 

Removing Viruses or Worms, Components Thereof, and Products Containing Same 

Spain Pending be

337-TA-625 Certain Self-Cleaning Litter Boxes and 

Components Thereof 

No foreign respondents Pending be

337-TA-626 Certain Noise Cancelling Headphones New Zealand Pending be

337-TA-627 Certain Short Wavelength 

Semiconductor Lasers and Products Containing Same 

Japan Pending be

337-TA-628 Certain Computer Products, Computer 

Components and Products Containing Same 

Taiwan Pending be

337-TA-629 Certain Silicon Microphone Packages 

and Products Containing The Same 

Malaysia Pending be

337-TA-630 Certain Semiconductor Chips with 

Minimized Chip Package Size and Products Containing Same (III) 

Taiwan, Japan, China Pending be

337-TA-631 Certain Liquid Crystal Display Devices 

and Products Containing the Same 

Japan Pending be

337-TA-632 Certain Refrigerators and Components 

Thereof 

Korea, Mexico Pending be

 337-TA-634 Certain Liquid Crystal Display Modules, 

Products Containing Same, and Methods for Using the Same 

Korea Pending be

337-TA-636 Certain Laser Imageable Lithographic 

Printing Plates 

Israel, Canada Pending be
A

-21

TABLE A.9 Section 337 investigations and related proceedings completed by the U.S. International Trade Commission during 2008 and 

December 31, 2008 - ContinuedStatus of Investigation Article Countrya Commissio

Pending - Continued: 337-TA-637 Certain Hair Irons and Packaging 

Thereof 

Singapore, China, Hong Kong Pending be

337-TA-640 Certain Short-Wavelength Light 

Emitting Diodes, Laser Diodes and Products Containing Same 

Singapore, Taiwan, Malaysia, China, Japan, Korea, Finland, Sweden 

Pending be

337-TA-641 Certain Variable Speed Wind Turbines 

and Components Thereof 

Japan Pending be

337-TA-643 Certain Cigarettes and Packaging 

Thereof 

Moldova, Belize, Singapore, Ukraine, Kyrgyzstan, Gibraltar, United Kingdom, Switzerland 

Pending be

337-TA-644 Certain Composite Wear Components 

and Products Containing the Same 

India, Italy Pending be

337-TA-645 Certain Vein Harvesting Surgical 

Systems and Components Thereof 

Japan Pending be

337-TA-646 Certain Power Supplies Taiwan, United Kingdom Pending be337-TA-648 Certain Semiconductor Integrated 

Circuits Using Tungsten Metallization and Products Containing Same 

Taiwan, Japan, Switzerland, China, Netherlands 

Pending be

337-TA-649 Certain Semiconductor Chips with 

Minimized Chip Package Size and Products Containing Same (IV) 

Taiwan, British Virgin Islands, Singapore 

Pending be

 337-TA-650 Certain Coaxial Cable Connectors and 

Components Thereof and Products Containing Same 

Taiwan, China Pending be

337-TA-651 Certain Automotive Parts Taiwan Pending be

337-TA-653 Certain Base Stations and Wireless 

Microphones 

Korea, China Pending be
A

-22

TABLE A.9 Section 337 investigations and related proceedings completed by the U.S. International Trade Commission during 2008 and 

December 31, 2008 - ContinuedStatus of Investigation Article Countrya Commissio

Pending - Continued:337-TA-654 Certain Peripheral Devices and 

Components Thereof and Products Containing the Same 

Taiwan Pending be

337-TA-655 Certain Cast Steel Railway Wheels, 

Certain Processes for Manufacturing or Relating to Same and Certain Products Containing Same 

China Pending be

337-TA-657 Certain Automotive Multimedia Display 

and Navigation Systems, Components Thereof, and Products Containing Same 

Japan Pending be

337-TA-658 Certain Video Game Machines and 

Related Three-Dimensional Pointing Devices 

Japan Pending be

337-TA-659 Certain Prepregs, Laminates, and 

Finished Circuit Boards 

China, Hong Kong, Taiwan Pending be

337-TA-660 Certain Active Comfort Footwear Korea Pending be

337-TA-661 Certain Semiconductor Chips Having 

Synchronous Dynamic Random Access Memory Controllers and Products Containing Same 

Taiwan, Hong Kong Pending be

 337-TA-662 Certain Tunable Laser Chips, 

Assemblies and Products Containing Same 

Sweden, Germany, Canada Pending be

337-TA-663 Certain Mobile Telephones and 

Wireless Communication Devices Featuring Digital Cameras, Components Thereof 

Korea Pending be
A

-23

TABLE A.9 Section 337 investigations and related proceedings completed by the U.S. International Trade Commission during 2008 and December 31, 2008 - Continued

Status of Investigation Article Countrya Commissio

Pending - Continued: 337-TA-664 Certain Flash Memory Chips and 

Products Containing The Same 

Korea, Taiwan, China, Malaysia, Hong Kong, Canada, Japan, Sweden 

Pending be

337-TA-665 Certain Semiconductor Integrated 

Circuits and Products Containing Same 

Cayman Islands, Singapore Pending be

Source: U.S. International Trade Commission. 

a This column lists the countries of the foreign respondents named in the investigation. b The Commission in 2004 issued two limited exclusion orders on certain categories of vehicles and these remain in force. c Inv. Nos. 337-TA-608 and 337-TA-612 were consolidated. d Inv. Nos. 337-TA-601 and 337-TA-613 were consolidated, and then unconsolidated. 
A-24

TABLE A.10 Outstanding Section 337 exclusion orders as of December 31, 2008 

Investigation No. Article Countrya Date patent expiresb

337-TA-55 Certain Novelty Glasses Hong Kong Nonpatent 

337-TA-69 Certain Airtight Cast-Iron Stoves Taiwan, Korea Nonpatent 

337-TA-87 Certain Coin-Operated Audio-Visual Games 

and Components Thereof 

Japan, Taiwan Nonpatent 

337-TA-105 Certain Coin-Operated Audio-Visual Games 

and Components Thereof 

Japan, Taiwan Nonpatent 

337-TA-112 Certain Cube Puzzles Taiwan, Japan, Canada Nonpatent 

337-TA-114 Certain Miniature Plug-In Blade Fuses Taiwan Nonpatent 

337-TA-118 Certain Sneakers with Fabric Uppers and 

Rubber Soles 

Korea Nonpatent 

337-TA-137 Certain Heavy-Duty Staple Gun Tackers Taiwan, Hong Kong, 

Korea 

Nonpatent 

337-TA-152 Certain Plastic Food Storage Containers Hong Kong, Taiwan Nonpatent 

337-TA-167 Certain Single Handle Faucets Taiwan Nonpatent 

337-TA-174 Certain Woodworking Machines Taiwan, South Africa Nonpatent 

337-TA-195 Certain Cloisonne Jewelry Taiwan Nonpatent 

337-TA-197 Certain Compound Action Metal Cutting 

Snips and Components Thereof 

Taiwan Nonpatent 

337-TA-229 Certain Nut Jewelry and Parts Thereof Philippines, Taiwan Nonpatent 

337-TA-231 Certain Soft Sculpture Dolls, Popularly 

Known as "Cabbage Patch Kids," Related 

Literature, and Packaging Therefore 

No foreign respondents Nonpatent 

337-TA-266 Certain Reclosable Plastic Bags and Tubing Singapore, Taiwan, 

Korea, Thailand, Hong 

Kong 

Nonpatent 

337-TA-279 Certain Plastic Light Duty Screw Anchors Taiwan Nonpatent 

337-TA-285 Certain Chemiluminescent Compositions and 

Components Thereof and Methods of 

Using, and Products Incorporating, the 

Same 

France Nonpatent 

337-TA-287 Certain Strip Lights Taiwan Nonpatent 

337-TA-295 Certain Novelty Teleidoscopes Hong Kong, Taiwan Nonpatent 
A-25

TABLE A.10 Outstanding Section 337 exclusion orders as of December 31, 2008 -- Continued

Investigation No. Article Countrya Date patent expiresb

337-TA-319 Certain Automotive Fuel Caps and Radiator 

Caps and Related Packaging and 

Promotional Materials 

Taiwan Nonpatent 

337-TA-321 Certain Soft Drinks and Their Containers Colombia Nonpatent 

337-TA-376 Certain Variable Speed Wind Turbines and 

Components Thereof 

Germany Feb. 1, 2011c

337-TA-378 Certain Asian-Style Kamaboko Fish Cakes Japan Nonpatent 

337-TA-380 Certain Agricultural Tractors Under 50 Power 

Take-Off Horsepower 

Japan Nonpatent 

337-TA-383 Certain Hardware Logic Emulation Systems 

and Components Thereof 

France Apr. 28, 2009 

Apr. 28, 2009 

337-TA-406 Certain Lens-Fitted Film Packages China, Hong Kong, Korea Mar. 7, 2009 

Aug. 10, 2010 

Aug. 13, 2010 

Nov. 1, 2011 

Jan. 10, 2012 

Apr. 18, 2012 

July 25, 2012 

337-TA-413 Certain Rare-Earth Magnets and Magnetic 

Material and Articles Containing Same 

China, Taiwan June 7, 2015 

337-TA-416 Certain Compact Multipurpose Tools China, Taiwan July 1, 2011 

Oct. 21, 2011 

Oct. 21, 2011 

Oct. 21, 2011 

337-TA-424 Certain Cigarettes and Packaging Thereof No foreign respondents Nonpatent 

337-TA-440 Certain 4-Androstenediol China July 13, 2018 

337-TA-446 Certain Ink Jet Cartridges and Components 

Thereof 

Taiwan Apr. 25, 2012 

337-TA-448 Certain Oscillating Sprinklers, Sprinkler 

Components, and Nozzles 

Taiwan, Israel, Germany July 8, 2014 

July 8, 2014 

337-TA-473 Certain Video Game Systems, Accessories, 

and Components Thereof 

No foreign respondents Dec. 18, 2015 

Dec. 25, 2015 

337-TA-474 Certain Recordable Compact Discs and 

Rewritable Compact Discs 

No foreign respondents May 23, 2012 
A-26

TABLE A.10 Outstanding Section 337 exclusion orders as of December 31, 2008 -- Continued

Investigation No. Article Countrya Date patent expiresb

337-TA-481/491 Certain Display Controllers with Upscaling 

Functionality and Products Containing 

Same; and Certain Display Controllers 

and Products Containing Same 

Taiwan Feb. 24, 2017 

337-TA-482 Certain Compact Disc and DVD Holders Denmark, Hong Kong, 

Taiwan 

May 1, 2015 

337-TA-486 Certain Agricultural Tractors, Lawn Tractors, 

Riding Lawnmowers, and Components 

Thereof 

China Nonpatent 

337-TA-487 Certain Agricultural and Components Thereof Canada, China, France, 

Germany, Netherlands 

Nonpatent 

337-TA-489 Certain Sildenafil or Any Pharmaceutically 

Acceptable Salt Thereof, Such as 

Sildenafil Citrate, and Products 

Containing Same 

Belize, Israel, Nicaragua, 

Syria, United Kingdom, 

India, China 

Mar. 27, 2012 

337-TA-492 Certain Plastic Grocery and Retail Bags Thailand, China, 

Singapore, Hong Kong 

Dec. 6, 2010 

337-TA-494 Certain Automotive Measuring Devices, 

Products Containing Same, and Bezels 

for Such Devices 

Taiwan Nonpatent 

337-TA-498 Certain Insect Traps No foreign respondents Jan. 30, 2018 

337-TA-500 Certain Purple Protective Gloves Malaysia Nonpatent 

337-TA-505 Certain Gun Barrels Used in Firearms 

 Training Systems 

Switzerland, Netherlands Sept. 25, 2015 

Aug. 25, 2017 

337-TA-511 Certain Pet Food Treats China Sept. 23, 2011 

337-TA-512 Certain Light-Emitting Diodes and Products 

Containing Same 

Malaysia July 27, 2018 

July 27, 2018 

July 27, 2018 

Jan. 18, 2015 

337-TA-514 Certain Plastic Food Containers China Oct. 19, 2013 

Dec. 23, 2017 

Dec. 23, 2017 

337-TA-518 Certain Ear Protection Devices China, Taiwan June 2, 2015 

337-TA-522 Certain Ink Markers and Packaging Thereof China, India, Korea Nonpatent 
A-27

TABLE A.10 Outstanding Section 337 exclusion orders as of December 31, 2008 -- Continued

Investigation No. Article Countrya Date patent expiresb

337-TA-528 Certain Foam Masking Tape Spain, Netherlands, 

Portugal, Canada, 

France, Germany 

May 10, 2011 

337-TA-539 Certain Tadalafil or Any Salt or Solvate 

Thereof, and Products Containing Same 

India, Panama, Haiti, 

Nicaragua, Mexico, 

Australia 

June 12, 2016 

337-TA-541 Certain Power Supply Controllers and 

Products Containing Same 

Taiwan Sept. 24, 2019 

Sept. 24, 2019 

337-TA-543 Certain Baseband Processor Chips and 

Chipsets, Transmitter and Receiver 

(Radio) Chips, Power Control Chips, and 

Products Containing Same, Including 

Cellular Telephone Handsets 

No foreign respondents June 8, 2010 

337-TA-545 Certain Laminated Floor Panels Canada, China, Malaysia, 

Korea 

June 10, 2017 

337-TA-549 Certain Ink Sticks for Solid Ink Printers Korea Apr. 29, 2022 

Apr. 29, 2022 

Apr. 29, 2022 

337-TA-556 Certain High-Brightness Light Emitting 

Diodes and Products Containing Same 

Taiwan Jan. 18, 2009 

337-TA-557 Certain Automotive Parts Taiwan Feb. 4, 2017 

June 22, 2018 

July 27, 2018 

Sept. 28, 2018 

Oct. 5, 2018 

Oct. 26, 2018 

Mar. 1, 2019 

Mar. 22, 2019 

337-TA-563 Certain Portable Power Stations and 

Packaging Thereof 

China Feb. 4, 2017 

337-TA-564 Certain Voltage Regulators, Components 

Thereof and Products Containing Same 

No foreign respondents Mar. 23, 2013 

337-TA-565 Certain Ink Cartridges and Components 

Thereof 

Hong Kong, China, 

Germany, Korea 

Oct. 1, 2013 

Jan. 30, 2013 

Apr. 1, 2014 

May 18, 2019 

May 18, 2019 

Apr. 3, 2022 

Aug. 26, 2023 

Aug. 17, 2023 

337-TA-575 Certain Lighters China Nonpatent 
A-28

TABLE A.10 Outstanding Section 337 exclusion orders as of December 31, 2008 -- Continued

Investigation No. Article Countrya Date patent expiresb

337-TA-588 Certain Digital Multimeters, and Products 

with Multimeter Functionality 

China, Hong Kong Nonpatent 

337-TA-590 Certain Coupler Devices for Power Supply 

Facilities, Components Thereof, and 

Products Containing Same. 

China, Germany, Taiwan Aug. 5, 2024 

337-TA-603 Certain DVD Players and Recorders and 

Certain Products Containing Same 

China, Hong Kong Jan. 18, 2015 

Jan. 30, 2016 

Dec. 23, 2014 

337-TA-611 Certain Magnifying Loupe Products and 

 Components Thereof 

China Dec. 3, 2013 

May 20, 2022 

July 19, 2013 

337-TA-638 Certain Intermediate Bulk Containers China Jan. 12, 2009 

Mar. 16, 2012 

Mar. 21, 2015 

Source: U.S. International Trade Commission. 

a

 This column lists the countries of the foreign respondents named in the investigation. b

 Multiple dates indicate the expiration dates of separate patents within the investigation. c

 Patent term extended pursuant to 35 U.S.C. 154(c). 
A-29

TABLE A.11 U.S. imports for consumption of leading GSP duty-free imports, 2008

HTS No. Description Total Imports GS

(Mi

2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more 151,133 2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. 108,270 

3824.90.40 Fatty substances of animal or vegetable origin and mixtures thereof 1,448 

7202.41.00 Ferrochromium containing more than 3 percent of carbon 910 

7113.11.50 Articles of jewelry and parts thereof, of silver, n.e.s.o.i., valued over $18 per dozen pieces or parts 1,283 

7202.30.00 Ferrosilicon manganese 682 7113.19.29 Gold necklaces and neck chains, other than rope or mixed link 882 

4011.10.10 New pneumatic radial tires, of rubber, of a kind used on motor cars, including station wagons and 

 racing cars 4,912 

7606.12.30 Aluminum alloy plates, sheets, and strip, of a thickness exceeding 0.2 mm, rectangular (including 

square), not clad 2,086 

7113.19.50 Articles of jewelry and parts thereof, of precious metal except silver, except necklaces and clasps 4,207 

2905.11.20 Methanol (methyl alcohol), n.e.s.o.i. 1,960 

3907.60.00 Polyethylene terephthalate in primary forms 1,076 

2710.19.05 Distillate and residual fuel oil (including blends) derived from petroleum or oils from bituminous 

minerals, testing under 25 degrees A.P.I. 44,004 

4011.20.10 New pneumatic radial tires, of rubber, of a kind used on buses or trucks 2,759 

8544.30.00 Ignition wiring sets, other wiring sets of a kind used in vehicles, aircraft or ships 5,532 2106.90.99 Food preparations, n.e.s.o.i. 1,168 

8708.99.81 Parts and accessories of the motor vehicles, n.e.s.o.i. 5,442 

6802.99.00 Monumental or building stone and articles thereof, n.e.s.o.i., of natural stone, n.e.s.o.i. 278 

7323.93.00 Stainless steel table, kitchen or other household articles and parts thereof 885 4015.19.10 Gloves, mittens and mitts, seamless, of vulcanized rubber other than hard rubber, other than surgical 

or medical 349 

 Top 20 items 339,263 

All other 1,734,574 

 Total 2,073,837 

Source: Compiled from official statistics of the U.S. Department of Commerce. Note: Figures do not include U.S. Virgin Island imports. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.” 
A-30

TABLE A.12 U.S. imports for consumption and imports eligible for GSP treatment, by import categories under the Harmonized Tariff S

HTS Section Description Total imports GSP eligible 

Millions of $ 

I Live animals; animal products 20,506 80 II Vegetable products 26,611 1,243 

III Animal and vegetable fats, oils, and waxes 5,316 208 

IV Prepared foodstuffs; beverages, spirits; tobacco 42,071 2,100 V Mineral products 463,694 24,051 

VI Chemical products 170,735 5,396 VII Plastics and rubber 55,771 3,412 VIII Raw hides and skins, leather, furskins; saddlery; handbags 11,008 403 

IX Wood; charcoal; cork; straw and other plaiting materials 14,842 923 

X Wood pulp; paper and paperboard 27,425 0 XI Textiles and textile articles 95,753 489 

XII Footwear, headgear, umbrellas; artificial flowers 22,929 30 

XIII Stone, plaster, cement, asbestos, ceramic and glass articles 16,031 1,689 

XIV Pearls, precious or semi-precious stones; imitation jewelry 49,497 3,400 XV Base metals and articles of base metal 123,589 6,403 XVI Machinery and appliances; electrical equipment 497,039 6,138 

XVII Vehicles, aircraft, vessels, transport equipment 220,855 1,713 

XVIII Optical, photographic, medical, and musical instruments; clocks 62,620 1,095 XIX Arms and ammunition; parts and accessories thereof 2,338 71 

XX Miscellaneous manufactured articles 73,679 495 

XXI Works of art, collectors' pieces and antiques 7,460 0 

XXII Special classification provisions 64,068 0 

 Total 2,073,837 59,342 

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

Note: Because of rounding, figures may not add to totals shown.
TABLE A.13 U.S. imports for consumption under AGOA, by source, 2006-08

Source 2006 2007 2008 

% change 

2007-08

Thousands of $ 

Nigeria 25,823,091 30,137,133 35,366,204 17.4

Angola 4,532,941 4,767,934 9,794,965 105.4

Republic of the Congo 774,536 1,604,868 2,639,141 64.4

Republic of South Africa 717,439 1,076,985 2,427,690 125.4

Chad 1,531,433 1,487,552 2,309,230 55.2

Gabon 1,290,031 1,673,605 2,143,355 28.1

Cameroon 152,394 169,173 441,316 160.9

Lesotho 384,452 379,592 338,797 -10.7

Madagascar 229,541 281,443 277,051 -1.6

Kenya 265,051 250,352 252,243 0.8

Swaziland 135,425 135,838 125,387 -7.7

Mauritius 145,843 112,347 97,291 -13.4

Democratic Rep. of the Congo 0 39,478 65,234 65.2

Ghana 34,874 56,151 31,494 -43.9

Malawi 29,901 27,568 26,680 -3.2

Botswana 28,225 31,331 15,803 -49.6

Senegal 14,239 14 10,229 (

a

)

Ethiopia 5,000 4,741 9,392 98.1

Tanzania 3,022 2,815 1,527 -45.7

Uganda 1,490 1,189 473 -60.3

Mozambique 940 825 129 -84.4

Namibia 33,019 28,579 6 -100.0b

Rwanda 0 0 5 (

c

)

Zambia 8 73 5 -93.5

Mali 3 9 4 -54.7

Niger 1 27 1 -97.5

Guinea 0 27 1 -97.6

The Gambia 0 (

d

) 0 -100.0

Cape Verde 85 0 0 (

c

)

Burkina Faso 6 0 0 (

c

)

Benin 0 0 0 (

c

)

Burundi 0 0 0 (

c

)

Comoros (

e

) (

e

) 0 (

c

)

Djibouti 0 0 0 (

c

)

Guinea-Bissau 0 0 0 (

c

)

Liberia (

e

) 0 0 (

c

)

Mauritania (

e

) 0 0 (

c

)

São Tomé and Príncipe 0 0 0 (

c

)

Seychelles 0 0 0 (

c

)

Sierra Leone 0 0 0 (

c

)

Togo (

e

) (

e

) 0 (

c

)

Total 36,132,990 42,269,649 56,373,651 33.4

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

Note: Because of rounding, figures may not add to totals shown. Senegal’s large percentage and value increase in 

2008 was driven by increased petroleum imports, part of which was a shift from exports claiming no preference 

program to exports under AGOA. Namibia’s large percentage and value decrease in 2008 was the result of reduced 

apparel exports resulting from the closure of the Malaysian-owned Ramatex textile and clothing complex in March 

2008, which had exported apparel to the United States under AGOA. 

 a

 Percent change is more than 10,000 percent. 

 b

 Rounds to 100.0 percent. 

 c

 Not applicable. 

 d U.S. value less than $500. 

 e

 Not AGOA eligible. 

 

A-31
TABLE A.14 U.S. imports for consumption of leading imports under AGOA, 2006-08 

HTS No. Description 2006 

Millio

2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more 31,161 32709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. 1,723 

8703.23.00 Passenger motor vehicles with spark-ignition internal combustion reciprocating piston engine, cylinder 

capacity 1,500-3000 cc 329 

2710.19.05 Distillate and residual fuel oil (including blends) derived from petroleum or oils from bituminous minerals, 

testing under 25 degrees A.P.I. 871 

2710.11.25 Naphthas, not motor fuel/blending stock, from petroleum oils/oils from bituminous minerals, minimum 70 

percent by weight of such products 318 

7202.11.50 Ferromanganese containing by weight more than 4 percent carbon 98 

6204.62.40 Women’s or girls’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, n.e.s.o.i. 268 

8703.24.00 Other passenger motor vehicles, with spark-ignition internal combustion reciprocating piston engine, 

cylinder capacity over 3,000 cc (a) 

0 

6110.20.20 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of cotton, n.e.s.o.i. 228 

6203.42.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, not containing 15 percent 

or more down 226 

6205.20.20 Men’s or boys’ shirts, not knitted or crocheted, of cotton, not certified hand-loomed and folklore product 65 

6110.30.30 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of man-made fibers, 

n.e.s.o.i. 67 

3823.70.60 Industrial fatty alcohols, other than derived from fatty substances of animal or vegetable origin 46 

6104.62.20 Women’s or girls’ trousers, breeches, and shorts, knitted or crocheted, of cotton 57 2710.11.18 Light oil motor fuel blending stock from petroleum oils & bituminous minerals (o/than crude) or prep 70%+ 

by wt. from petroleum oils 

2710.11.45 Mixtures of hydrocarbons n.e.s.o.i., none comprising over half of product, 70% or more by weight from 

petroleum oils and bituminous minerals 48 

6105.10.00 Men’s or boys’ shirts, knitted or crocheted, of cotton 49 0805.10.00 Oranges, fresh or dried 46 

6109.10.00 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of cotton 51 

2710.11.15 Light motor fuel, 70 percent or more by weight from petroleum oils and bituminous minerals, other than 

crude 18 

6104.63.20 Women’s or girls’ trousers, breeches and shorts, knitted or crocheted, of synthetic fibers, n.e.s.o.i. 30 

6203.43.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of synthetic fibers, n.e.s.o.i. 11 6204.63.35 Women’s or girls’ trousers, breeches, and shorts, not knitted or crocheted, of synthetic fibers, n.e.s.o.i. 16 

2204.21.50 Non-sparkling wine of fresh grapes, other than Tokay, not over 14 percent alcohol, in containers not over 2 

liters 27 

6103.43.15 Men’s or boys’ trousers, breeches and shorts, knitted or crocheted, of synthetic fibers, n.e.s.o.i. 20 

Total of items shown 35,774 4

All other 359 

Total of all commodities 36,133 4

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or inclu

a U.S. value is less than $500,000. b Percent change is more than 10,000 percent. c Not applicable.

A-32
A-33

TABLE A.15 U.S. imports for consumption under ATPA, by source, 2006-08

Source 2006 2007 2008

% change 

2007-08

Millions of $ 

Colombia 4,791 4,528 7,339 62.1

Ecuador 5,325 4,614 6,595 42.9

Peru 3,202 3,017 3,169 5.0

Bolivia 166 148 140 -5.5

Total 13,484 12,307 17,243 40.1

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

Note: Because of rounding, figures may not add to the totals shown. 
A-34

TABLE A.16 U.S. imports for consumption of leading imports under ATPA, 2006-08 

HTS No. Description 2006 2007 

Millions of $ 

2709.00.10 Petroleum oils and oils from bituminous minerals, crude, testing under 25 degrees A.P.I. 5,873.0 5,840.3 2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more 2,165.9 1,644.9 

7403.11.00 Refined copper cathodes and sections of cathodes 993.0 989.1 

2710.19.05 Distillate and residual fuel oil (including blends) derived from petroleum or oils from 

ituminous minerals, testing under 25 degrees A.P.I. 458.8 408.7 

2710.11.25 Naphthas, not motor fuel/blending stock, from petroleum oils/oils from bituminous minerals, 

minimum 70 percent by weight of such products 613.0 294.1 

0603.11.00a Roses, fresh 288.4 327.2 

6110.20.20 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of 

cotton, n.e.s.o.i. 318.2 297.4 

0603.19.00b Anthuriums, alstroemeria, gypsophilia, lilies, snapdragons and other flowers n.e.s.o.i., fresh 172.0 187.8 

6105.10.00 Men’s or boys’ shirts, knitted or crocheted, of cotton 190.7 165.4 

6109.10.00 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of cotton 168.8 155.5 

0709.20.90 Asparagus, fresh or chilled, n.e.s.o.i. 126.6 159.3 

2710.19.10 Distillate/residual fuel oil (including blends) derived from petroleum oils or oil of bituminous 

minerals, testing 25 degrees A.P.I. or more 0.0 19.9 

6203.42.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, not 

containing 15 percent or more down 140.8 98.6 

1604.14.30 Tunas and skipjack, not in oil, in airtight containers, n.e.s.o.i. 64.9 67.9 

0603.14.00c Chrysanthemums, fresh 63.4 65.5 

6106.10.00 Women’s or girls’ blouses and shirts, knitted or crocheted, of cotton 66.6 52.4 

2613.90.00 Molybdenum ores and concentrates, not roasted 41.1 38.8 

2005.99.80d Artichokes, prepared or preserved otherwise than by vinegar or acetic acid, not frozen 35.9 39.1 

0904.20.20 Paprika, dried or crushed or ground 17.7 26.5 

0603.12.70e Carnations, other than miniature, fresh 37.4 42.2 

2005.60.00 Asparagus, prepared or preserved otherwise than by vinegar or acetic acid, not frozen 24.6 21.5 

2710.11.45 Mixtures of hydrocarbons n.e.s.o.i., none comprising over half of product, 70% or more by 

weight from petroleum oils and bituminous minerals 0.0 (f

0710.80.97 Vegetables n.e.s.o.i., uncooked or cooked by steaming or boiling in water, frozen, reduced 

in size 27.5 34.8 

3904.10.00 Polyvinyl chloride, not mixed with any other substances, in primary forms 33.8 42.8 

0804.50.40 Guavas, mangoes, and mangosteens, fresh, if entered during the period September 1 

through May 31 of the following year, inclusive 31.5 30.0 

Total of items shown 11,953.5 11,049.7 

All other 1,530.9 1,257.2 

Total of all commodities 13,484.4 12,306.8 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl

a Trade in 2006 reported under HTS tariff line 0603.10.60. b Trade in 2006 reported under HTS statistical line 0603.10.7040 and HTS tariff line 0603.10.80. c Trade in 2006 reported under HTS statistical line 0603.10.7010 and 0603.10.7020. d Trade in 2006 reported under HTS tariff line 2005.90.80. 

 e Trade in 2006 reported under HTS statistical line 0603.10.7030. f U.S. value is less than $50,000.

g Percent change is more than 10,000 percent.
A-35

TABLE A.17 U.S. imports for consumption under CBERA, by source, 2006-08

Source 2006 2007 2008

% change, 

2007-08

1,000 dollars 

Trinidad and Tobago 3,677,726 2,832,296 2,365,386 -16.5

Costa Rica 1,382,065 1,417,864 1,252,756 -11.6

Haiti 379,321 430,389 405,118 -5.9

Jamaica 245,755 235,947 319,600 35.5

Bahamas 125,056 137,351 141,038 2.7

Belize 72,221 54,460 129,517 137.8

Panama 33,828 31,191 46,466 49.0

Guyana 5,098 10,099 20,613 104.1

St. Kitts-Nevis 24,750 16,189 14,071 -13.1

Netherlands Antilles 2,157 3,598 11,933 231.6

St. Lucia 7,076 8,594 11,081 28.9

Barbados 4,765 7,100 6,913 -2.6

British Virgin Islands 223 65 437 577.5

Aruba 171 295 229 -22.3

Dominica 66 45 200 345.8

St. Vincent and Grenadines 210 216 171 -20.8

Grenada 56 25 126 411.5

Antigua 23 132 94 -29.1

Montserrat 0 0 0 (

a

)

Dominican Republic 2,481,035 310,104 0 -100.0

El Salvador 154,121 0 0 (

a

)

Guatemala 652,845 0 0 (

a

)

Honduras 555,925 0 0 (

a

)

Nicaragua 110,981 0 0 (

a

)

Total 9,915,473 5,495,960 4,725,747 -14.0

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

Note: Because of rounding, figures may not add to totals shown. The following CAFTA-DR countries were 

only eligible for CBERA benefits before CAFTA-DR entered into force (implementation date): El Salvador 

(March 1, 2006), Honduras (April 1, 2006), Nicaragua (April 1, 2006), Guatemala (July 1, 2006), and 

Dominican Republic (March 1, 2007). 

 

 a Not applicable. 
TABLE A.18 U.S. imports for consumption of leading imports under CBERA, 2006-08 

HTS No. Description 2006 2007 

Millions of $ 

2905.11.20 Methanol (methyl alcohol), n.e.s.o.i. 1,029.7 1,004.2 2709.00.20 Petroleum oils and oils from bituminous minerals, crude, testing 25 degrees A.P.I. or more 1,693.8 1,309.5 

2207.10.60 Undenatured ethyl alcohol for nonbeverage purposes 277.2 263.4 

0804.30.40 Pineapples, fresh or dried, not reduced in size, in crates or other packages 245.6 377.9 

6109.10.00 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of cotton 607.3 195.7 

6110.20.20 Sweaters, pullovers, sweatshirts, waistcoats, and similar articles, knitted or crocheted, of 

cotton, n.e.s.o.i. 393.0 139.8 

2710.11.25 Naphthas, not motor fuel/blending stock, from petroleum oils/oils from bituminous minerals, 

minimum 70 percent by weight of such products 71.5 227.2 

3903.11.00 Polystyrene, expandable, in primary forms 121.5 133.2 4011.10.10 New pneumatic radial tires, of rubber, of a kind used on motor cars, including station wagons 

and racing cars 63.7 79.6 

2009.11.00 Frozen concentrated orange juice 53.7 100.3 

6115.95.90 Stockings, socks, other hosiery n.e.s.o.i., and footwear without applied soles, knitted 

orcrocheted, of \cotton, not lace or net (a) 68.6 

6203.42.40 Men’s or boys’ trousers, breeches, and shorts, not knitted or crocheted, of cotton, not 

containing 15 percent or more down 449.5 126.3 

0714.90.20 Fresh or chilled yams, whether or not sliced or in the form of pellets 19.1 23.3 

8536.30.80 Electrical apparatus for protecting electrical circuits, for a voltage not exceeding 1,000 volts, 

n.e.s.o.i. 12.2 28.2 

0807.19.20 Cantaloupes, fresh, not entered Aug. 1-Sept. 15 95.3 39.1 

7108.12.50 Gold, nonmonetary, unwrought, other than gold bullion and dore 0.5 0.7 0714.10.20 Cassava (manioc), fresh, chilled or dried, whether or not sliced or in the form of pellets 15.6 18.6 

0602.10.00 Unrooted cuttings and slips of live plants 30.9 24.5 

1701.11.10 Raw sugar not containing added flavoring or coloring 140.3 31.0 

6109.90.10 T-shirts, singlets, tank tops, and similar garments, knitted or crocheted, of man-made fibers 127.5 64.6 

3921.12.19 Nonadhesive plates, sheets, film, foil, and strip, cellular, of polymers of vinyl chloride, 

combined with textile materials, n.e.s.o.i. 17.7 19.9 

0603.19.00b Anthuriums, alstroemeria, gypsophilia, lilies, snapdragons and other flowers n.e.s.o.i., fresh 29.4 24.0 

6107.11.00 Men’s or boys’ underpants and briefs, knitted or crocheted, of cotton 171.0 36.9 

2207.20.00 Ethyl alcohol and other spirits, denatured, of any strength 12.1 65.0 

2710.19.05 Distillate and residual fuel oil (including blends) derived from petroleum or oils from 

bituminous minerals, testing under 25 degrees A.P.I. 517.7 76.6 

Total of items shown 6,195.5 4,478.2 

All other 3,720.0 1,017.7 

Total of all commodities 9,915.5 5,496.0 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl

CAFTA-DR countries were only eligible for CBERA benefits before CAFTA-DR entered into force (implementation date): El Salvador (M(April 1, 2006), Nicaragua (April 1, 2006), Guatemala (July 1, 2006), and Dominican Republic (March 1, 2007). 

a Trade in 2006 reported under parts of items contained in HTS tariff line 6115.92.90. b Trade in 2006 reported under HTS statistical line 0603.10.7040 and HTS tariff line 0603.10.80. 

A-36
TABLE A.19 WTO dispute-settlement cases to which the United States was a party, developments in 2008 

Case No. Title Complainant Action (Month/Day/Year) 

DS27 European Communities B

Regime for the Importation, 

Sale and Distribution of 

Bananas 

Ecuador; Guatemala; 

Honduras; Mexico; United 

States 

Ecuador requests consultations under Article 21.5 

(11/16/06). 

Ecuador submits revised request for consultations 

(11/28/06). 

Colombia (11/29/2006), Belize, Côte d’Ivoire, 

Dominica, the Dominican Republic, Saint Lucia, St. 

Vincent and the Grenadines, and Suriname 

(11/30/06), Cameroon (12/04/06), Jamaica 

(12/06/06), and Panama and the U.S. (12/11/06) 

request to join the consultations. EC accepts their 

requests. 

Ecuador requests establishment of an Article 21.5 

panel (02/23/07). 

Second Recourse to Article 21.5 panel report 

circulated (04/07/08). 

Second Recourse to Article 21.5 Appellate Body 

report circulated (11/26/08). 

DS267 United States B Subsidies 

on Upland Cotton 

Brazil DSB adopts Appellate Body report and panel report 

as modified (03/21/05). 

After the reasonable period of time for 

implementation expires (09/21/05), Brazil seeks 

authorization to suspend concessions, and the U.S. 

seeks arbitration. The parties subsequently seek 

suspension of arbitration proceedings (11/21/05). 

Brazil requests the establishment of a panel 

(08/18/06). 

DSB agrees, if possible, to refer the matter raised by

Brazil to the original panel (09/28/06). 

Panel is established (10/25/06). 

Article 21.5 panel report circulated (12/18/07). 

Article 21.5 Appellate Body report circulated 

(06/02/08) 

DS268 United States B Sunset 

Reviews of Anti-Dumping 

Measures on Oil Country 

Tubular Goods from Argentina 

Argentina U.S. informs DSB it has implemented earlier DSB 

recommendations and rulings in the case; Argentina 

expresses doubts (12/20/05). 

Argentina requests consultations (01/26/06). 

Argentina requests the establishment of a panel 

(03/06/06). 

DSB refers the matter raised by Argentina to the 

original panel (03/17/06). 

Compliance panel composed (03/20/06). 

Panel report circulated (11/30/06). 

Appellate Body report circulated (04/12/07). 

DSB adopts Appellate Body report (05/11/07). 

DS282 United States B 

Antidumping Measures 

on Oil Country Tubular Goods 

from Mexico 

Mexico Appellate Body report circulated (11/02/05). 

U.S. issues statement of intent to implement the 

recommendations and rulings of the DSB (12/20/05).

Agreement reached on the reasonable period of time 

for implementation (02/15/06). 

Statement by Mexico of nonconformity regarding 

agreed time limits (05/30/06). 

Mexico requests consultations under DSU Article 

21.5 (08/21/06). 

Mexico asks for establishment of a compliance panel 

(04/07/07); panel established. 

Mexico asks the panel to suspend its work 

(07/05/07). Authority for panel lapses (07/06/08). 

A-37 
TABLE A.19 WTO dispute-settlement cases to which the United States was a party, developments in 2008 — Continued

Case No. Title Complainant Action (Month/Day/Year) 

DS285 United States B Measures 

Affecting Cross-Border 

Supply of Gambling and 

Betting Services 

Antigua and 

Barbuda 

Parties agree to procedures under DSU Articles 21 and 22 

(05/24/06). 

Antigua and Barbuda request consultations (06/08/06). 

Antigua and Barbuda request establishment of a panel 

(07/06/06). 

DSB refers matter to original panel if possible (07/19/06). 

Panel composed (08/16/06). 

Panel report circulated (03/30/07). 

DSB adopts panel report (05/22/07). 

Antigua and Barbuda seeks authorization to suspend 

concessions (06/21/07). 

U.S. objects and seeks arbitration (07/23/07). 

Arbitrator=s decision circulated (12/21/07). 

DS291 European Communities B

Measures Affecting the 

Approval and Marketing of 

Biotech Products 

United States Panel reports circulated (09/29/06). 

DSB adopts the panel reports (11/21/06). 

The EC announce its intention to implement 

recommendations and rulings and announce intent to 

discuss appropriate timeframe pursuant to DSU Article 

21.3(b) with Argentina, Canada, and U.S. (12/19/06). 

U.S. and EC agree on a reasonable period of time for 

implementation (06/21/07). 

U.S. and EC inform DSB they have reached agreement on 

procedures under Articles 21 and 22 (01/14/08). 

U.S. asks for authorization to suspend concessions 

(01/17/08) DSB refers matter to arbitration (02/08/08). 

EC and U.S. ask arbitrator to suspend work (02/15/08). 

DS294 United States B Laws, 

Regulations and 

Methodology for Calculating 

Dumping Margins (Zeroing) 

European 

Communities 

Panel report circulated (10/31/05). 

Appellate Body report circulated (04/18/06). 

U.S. announces that it intends to implement the DSB 

recommendations and rulings (05/30/06). 

U.S. and EC agree, pursuant to DSU Article 21.3(b), to the 

reasonable period of time for implementation (07/28/06). 

U.S. and EC reach an Understanding on Article 21 and 22 

procedures (05/04/07). 

EC requests Article 21.5 consultations (07/09/07). 

Brazil and Korea request to join the consultations 

(07/20/07). 

EC requests establishment of Article 21.5 panel (09/13/07).

Article 21.5 panel report is circulated (12/17/08). 

DS295 Mexico B Definitive 

Antidumping Measures 

on Beef and Rice 

United States DSU adopts Appellate Body report and panel report as 

modified (12/20/05). 

Mexico and the United States inform DSB that they have 

reached agreement on the reasonable period of time for 

implementation; Mexico will comply in August 2006 (in part) 

and in December 2006 (in part) (05/18/06). 

Parties reach an Understanding on procedure for Articles 

21 and 22 (01/16/07). 

DS320 United States B Continued 

Suspension of Obligations 

in the EC – Hormones 

Dispute 

European 

Communities 

EC requests consultations with U.S. (11/08/04). 

EC requests establishment of a panel (01/13/05). 

Panel established (02/17/05). 

Panel report circulated (03/31/08). 

EC (05/29/08) and U.S. (06/10/08) notify DSB of intent to 

appeal. 

Appellate Body report circulated (10/16/08). 

A-38 
A-39 

TABLE A.19 WTO dispute-settlement cases to which the United States was a party, developments in 2008 — Continued

Case No. Title Complainant Action (Month/Day/Year) 

DS322 United States B Measures 

Relating to Zeroing and 

Sunset Reviews 

Japan Panel report circulated (09/20/06). 

Appellate Body report circulated (01/9/07). 

Agreement reached on the reasonable period of time for 

implementation (05/04/07). 

Japan seeks authorization to suspend concessions 

(01/10/08). 

Japan asks for establishment of a compliance panel 

(04/07/08). 

DS334 Turkey B Measures 

Affecting the Importation 

of Rice 

United States U.S. requests establishment of a panel (02/06/06). 

Panel established (03/17/06). 

Panel report circulated (09/21/07). 

Turkey and U.S. inform DSB of agreement on reasonable 

period for Turkey to comply (04/09/08). 

Turkey and U.S. notify DSB of agreement on Article 21 and 

22 procedures (05/07/08). 

DS335 United States B 

Antidumping Measure on 

Shrimp from Ecuador 

Ecuador Ecuador requests establishment of a panel (06/08/06). 

Panel established (07/19/06). 

Panel report circulated (01/30/07). 

Agreement reached on the reasonable period of time for 

implementation (03/26/07). 

DS340 China B Measures Affecting 

Imports of Automobile Parts 

United States U.S. requests consultations with China (03/30/06). 

U.S. requests establishment of a panel (09/15/06). 

DSB establishes a single panel pursuant to DSU Article 9.1 

to consider similar complaints against China made by EC 

(DS339), U.S. (DS340), & Canada (DS342) (10/26/06). 

Panel report circulated (07/18/08). 

China notifies DSB of decision to appeal (09/15/08). 

Appellate Body report circulated (12/15/08). 

DS343 United States B Measures 

Relating to Shrimp from 

Thailand 

Thailand Thailand requests consultations (04/24/06). 

Panel established (10/26/06). 

Panel report circulated (02/29/08). 

Thailand (04/17/08) and U.S. (04/29/08) notify DSB of 

decision to appeal. 

Appellate Body report circulated (07/16/08). 

DS344 United States B Final 

Antidumping Measures on 

Stainless Steel from Mexico 

Mexico Mexico requests consultations (05/26/06). 

Japan requests to join the consultations (06/09/06). 

Mexico requests establishment of a panel (10/12/06). 

Panel established (10/26/06). 

Panel report circulated (12/20/07). 

Mexico notifies DSB of decision to appeal (01/31/08). 

Appellate body report circulated (04/30/08). 

Article 21.3© arbitration report circulated (10/31/08). 
A-40 

TABLE A.19 WTO dispute-settlement cases to which the United States was a party, developments in 2008 — Continued

Case No. Title Complainant Action (Month/Day/Year) 

DS345 United States B Customs 

Bond Directive for 

Merchandise Subject to 

Anti-Dumping/Countervailing 

Duties 

India India requests consultations (06/06/06). 

Brazil, China, and Thailand request to join the consultations 

(06/21/06). 

India requests establishment of a panel (10/13/06). 

Panel established (11/21/06). 

Chairman of panel informs the DSB that panel will not be 

able to complete its work within the standard 6-month time 

frame (07/27/07). 

Panel report circulated (02/29/08). 

India (04/17/08) and U.S. (04/29/08) notify DSB of decision 

to appeal. 

Appellate Body report circulated (07/16/08). 

U.S. and India notify DSB of agreement on reasonable time 

for U.S. to implement DSB recommendations (10/31/08). 

DS350 United States B Continued 

Existence and Application 

of Zeroing Methodology 

European 

Communities 

EC requests consultations (10/02/06). 

EC expands its request for consultations (10/09/06). 

Japan (10/10/06), Thailand (10/12/06), Brazil, and India 

(10/13/06) request to join consultations. U.S. accepts their 

requests. 

EC requests establishment of a panel (05/10/07). 

Panel established (06/04/07). 

Panel report circulated (10/01/08). 

EC (11/06/08) and U.S. (11/18/08) notify DSB of decision to 

appeal. 

DS353 United States B Measures 

Affecting Trade in Large 

Civil Aircraft (Second 

Complaint) 

European 

Communities 

EC requests consultations with U.S. (06/27/05). 

EC requests establishment of a panel (01/20/06). 

Panel established (02/17/06). 

Panel Chair informs the DSB that panel will not be able to 

complete its work within the standard 6-month time frame 

(05/18/07). 

Panel Chair informs DSB that the panel expects to 

complete work in 2009 (07/11/08) 

DS357 United States B Subsidies 

and Other Domestic Support 

for Corn and Other 

Agricultural Products 

Canada Canada requests consultations with U.S. (01/08/07). 

Australia (01/18/07), Argentina, Brazil, EC, Guatemala, 

Nicaragua, Thailand (01/19/07), and Uruguay (01/22/07) 

request to join the consultations. U.S. accepts requests. 

Canada requests establishment of a panel (06/07/07). 

Canada withdraws request for establishment of a panel 

(11/15/07). 

DS360 India B Additional and 

Extra-Additional Duties on 

Imports from the United 

States 

United States U.S. requests consultations with India (03/06/07). 

EC (03/16/07) and Australia (03/21/07) request 

consultations; India accepts their requests. 

U.S. requests establishment of a panel (05/24/07). 

Panel established (06/20/07). 

Panel report circulated (06/09/08). 

U.S. (08/01/08) and India (08/13/08) notify DSB of decision 

to appeal. 

Appellate Body report circulated (10/30/08). 
A-41 

TABLE A.19 WTO dispute-settlement cases to which the United States was a party, developments in 2008 — Continued

Case No. Title Complainant Action (Month/Day/Year) 

DS362 China B Measures Affecting 

the Protection and 

Enforcement of Intellectual 

Property Rights 

United States U.S. requests consultations with China (04/10/07). Japan 

(04/20/07), EC, Canada (04/25/07), and Mexico (04/26/07) 

request to join consultations. China accepts their requests.

U.S. requests establishment of panel (08/13/07). 

Panel established (09/25/07). 

Panel Chair informs DSB that the panel expects to issue its 

report in November 2008 (07/16/08). 

Panel report circulated (01/26/09) 

DS363 China B Measures Affecting 

Trading Rights and 

Distribution Services for 

Certain Publications and 

Audiovisual Entertainment 

Products 

United States U.S. requests consultations with China (04/10/07). 

EC requests to join the consultation (04/25/07). China 

accepts the request. 

U.S. requests establishment of a panel (10/10/07). 

Panel established (11/27/07). 

Panel Chair informs DSB that the panel expects to issue its 

report in February 2009. 

DS365 United States B Domestic 

Support and Export Credit 

Guarantees for Agricultural 

Products 

Brazil Brazil requests consultations with the U.S. (07/11/07). 

Canada (07/20/07), Guatemala (07/23/07), Costa Rica, 

Mexico (07/24/07), EC (07/25/07), Argentina, Australia, 

India, Nicaragua (07/26/07), and Thailand (07/27/07) 

request to join the consultations. U.S. accepts the requests.

Canada and Brazil request establishment of a panel 

(11/08/07). 

Single panel established (12/17/07). 

DS368 United States B Preliminary 

Anti-Dumping and 

Countervailing Duty 

Determinations on Coated 

Free Sheet Paper from China

China China requests consultations with the U.S. (09/14/07). 

DS373 China B Measures Affecting 

Financial Information 

Services and Foreign 

Financial Information 

Suppliers 

United States U.S. requests consultations with China (03/03/08). 

EC requests to join consultations; China accepts request 

(03/14/08). 

U.S. and China inform DSB they have reached agreement 

in the form of a memorandum of understanding (12/04/08).

DS375 European Communities B

Tariff Treatment of Certain 

Information Technology 

Products 

United States U.S. requests consultations with EC (05/28/08). 

U.S., Japan, Chinese Taipei request establishment of a 

panel (08/18/08). 

Panel established (09/23/08). 

DS379 United States B Definitive 

Anti-Dumping and 

Countervailing Duties on 

Certain Products from China 

China China requests consultations with U.S. (09/19/08). 

China requests establishment of a panel (12/09/08). 

Panel established (01/20/09). 

DS381 United States B Measures 

Concerning the Importation, 

Marketing and Sale of Tuna 

and Tuna Products 

Mexico Mexico requests consultations with U.S. (10/24/08). 

EC (11/06/08) and Australia (11/07/08) request to join 

consultations. 
A-42 

TABLE A.19 WTO dispute-settlement cases to which the United States was a party, developments in 2008 — Continued

Case No. Title Complainant Action (Month/Day/Year) 

DS382 United States B 

Anti-Dumping Administrative 

Reviews and Other Measures

Related to Imports of Certain 

Orange Juice from Brazil 

Brazil Brazil requests consultations with U.S. (11/27/08). 

Japan requests to join consultations (12/10/08). 

DS383 United States B 

Anti-Dumping Measures on 

Polyethylene Retail Carrier 

Bags from Thailand 

Thailand Thailand requests consultations with U.S. (11/26/08). 

DS384 United States B Certain 

Country of Origin Labelling 

(Cool) Requirements 

Canada Canada requests consultations with U.S. (12/01/08). 

Mexico and Nicaragua request to join consultations 

(12/12/08); U.S. accepts requests. 

DS386 United States B Certain 

Country of Origin Labelling 

Requirements 

Mexico Mexico requests consultations with U.S. (12/17/08). 

Canada requests to join consultations (12/30/08); U.S. 

accepts request. 

DS387 China – Grants, Loans and 

other incentives 

United States U.S. requests consultations with China (12/19/08). 

Canada, EC, Mexico, Turkey (01/15/09) and Australia 

(01/16/09) request to join consultations. 

Source: WTO, “Chronological List of Disputes Cases,” http://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm.

Note: With a few exceptions, this list includes cases in which formal action occurred in 2008; where appropriate, pre-2008 

and post-2008 actions are noted to place the 2008 actions in context. Since DSB adoption of panel and Appellate Body

reports is virtually automatic, dates of adoption are generally omitted. 
Source: NAFTA Secretariat, "Status Report NAFTA & FTA Dispute Settlement Proceedings," http://www.nafta-secalena.org/DefaultSite/index_e.aspx?DetailID=9. 

TABLE A.20 NAFTA Chapter 19 substantive challenges to original and five-year review determinations of USITC 

and Commerce, developments in 2008

File No. Dispute Action (Month/Day/Year) 

USA-MEX-2005-1904-06 Stainless Steel Sheet and Strip 

(USITC Affirmative Five-Year 

Review Determination) 

Panel Unanimously Affirmed USITC 

Determination (09/10/08). Notice of final 

panel action (09/22/08) 

USA-MEX-2007-1904-03 Welded Large Diameter Line Pipe 

(USITC Negative Five-Year Review 

Determination with respect to 

Mexico) 

USITC briefs filed (07/28/08) 

USA-MEX-2008-1904-03 Light-Walled Rectangular Pipe and 

Tube (Commerce Final Affirmative 

Antidumping Determination) 

Request for panel review (07/23/08) 

USA-MEX-2008-1904-04 Light-Walled Rectangular Pipe and 

Tube (USITC Final Affirmative 

Injury Determination) 

Request for panel review (08/29/08) 

Note: This list includes only cases in which formal action occurred in 2008; pending cases in which little or no formal 

action occurred are omitted. 

A-43
A-44

TABLE A.21 U.S. merchandise trade with the European Union,a by SITC codes (revision 3), 2006-08 

SITC Code No. Description 2006 2007 2008

% chan

2007

Millions of $ 

Exports: 

0 Food and live animals 5,132 6,153 6,756 

1 Beverages and tobacco 1,544 1,571 1,541 

2 Crude materials, inedible, except fuels 8,422 10,813 12,100 13 Mineral fuels, lubricants and related materials 5,636 5,950 14,269 13

4 Animal and vegetable oils, fats and waxes 249 265 320 2

5 Chemicals and related products, n.e.s. 41,429 47,832 53,888 1

6 Manufactured goods classified chiefly by material 13,337 15,105 15,909 7 Machinery and transport equipment 85,161 97,462 101,086 

8 Miscellaneous manufactured articles 26,840 29,188 31,671 

9 Commodities and transactions not classified elsewhere in the SITC 9,530 11,912 13,657 1

Total all exports commodities 197,281 226,252 251,196 1

Imports: 

0 Food and live animals 4,681 5,141 5,274 

1 Beverages and tobacco 9,161 10,087 9,746 2 Crude materials, inedible, except fuels 3,457 3,031 3,133 

3 Mineral fuels, lubricants and related materials 23,958 24,655 30,404 24 Animal and vegetable oils, fats and waxes 981 897 1,001 1

5 Chemicals and related products, n.e.s. 72,554 78,065 84,498 

6 Manufactured goods classified chiefly by material 36,730 38,271 37,219 

7 Machinery and transport equipment 124,867 132,475 132,024 8 Miscellaneous manufactured articles 38,674 42,020 41,564 

9 Commodities and transactions not classified elsewhere in the SITC 15,836 17,546 18,803 

Total all imports commodities 330,898 352,189 363,667 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specified.” 

a Includes 27 EU countries. 
A-45

TABLE A.22 Leading exports to the European Union,a by Schedule B subheading, 2006-08 

Schedule B subheading Description 2006 2

Millions 

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. 7,194 72710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent 

by weight of such products, not light 3,110 2

8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 5,916 8

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 6,299 6

3002.10 Antisera and other blood fractions, and modified immunological products 3,170 4

8411.91 Parts for turbojets or turbopropellers 4,657 58703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, 

cylinder capacity over 1,500 but not over 3,000 cc 6,453 5

7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder 2,823 48703.33 Passenger motor vehicles with compression-ignition internal combustion piston engine (diesel), 

cylinder capacity over 2,500 cc 254 2

2701.12 Bituminous coal, whether or not pulverized, but not agglomerated 1,583 1

9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. 2,583 2

3824.90 Other chemical products and preparations of the chemical and allied industries, n.e.s.o.i. 568 1

8411.12 Turbojets of a thrust exceeding 25 kN 2,418 28802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg 2,444 3

9701.10 Paintings, drawings and pastels, executed entirely by hand, framed or not framed 1,196 1

8517.62 Machines for the reception, conversion, transmission or regeneration of voice, images or other 

data, including switching/routing apparatus (b) 2

3822.00 Composite diagnostic or laboratory reagents, except pharmaceuticals 1,941 28411.99 Gas turbines parts, n.e.s.o.i. 1,687 1

8473.30 Parts and accessories for automated data processing machines and units 3,320 2

7112.99 Waste and scrap of precious metals, other than of gold or platinum, n.e.s.o.i. 594 1

9018.39 Medical etc. needles n.e.s.o.i., catheters, cannulae and the like; parts and accessories thereof 1,588 1

1201.00 Soybeans, whether or not broken 725 1

9018.19 Electro-diagnostic apparatus n.e.s.o.i., and parts 1,184 1

8471.50 Digital processing units other than those of 8471.41 and 8471.49 696 

8411.82 Gas turbines, except turbojets and turbopropellers, of a power not exceeding 5,000 kW 1,167 

 Total of items shown 63,568 78

All other 133,713 148

 Total of all commodities 197,281 226

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl

a Includes 27 EU countries. b Trade in 2006 reported under parts of items contained in Schedule B subheadings 8517.30 and 8517.50.
TABLE A.23 Leading imports from the European Union,a by HTS subheading, 2006-08 

HTS subheading Description 2006 20

Millions of 

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, 

n.e.s.o.i. 19,230 20,6

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum 

70 percent by weight of such products 15,876 16,2

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston 

engine, cylinder capacity over 3,000 cc 17,878 18,3

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston 

engine, cylinder capacity over 1,500 but not over 3,000 cc 14,115 14,4

2934.99 Nucleic acids and their salts, whether or not chemically defined; other heterocyclic 

compounds, n.e.s.o.i. 6,535 7,9

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 

percent by weight of such products, not light 5,068 5,6

8411.91 Parts for turbojets or turbopropellers 4,926 5,6

2933.99 Heterocyclic compounds with nitrogen hetero-atom(s) only, n.e.s.o.i. 6,488 5,19701.10 Paintings, drawings and pastels, executed entirely by hand, framed or not framed 3,658 4,8

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 2,468 3,1

7102.39 Nonindustrial diamonds, n.e.s.o.i. 2,907 3,1

2844.20 Uranium and its compounds enriched in u235; plutonium and its compounds 1,896 3,18802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 2,938 3,5

2204.21 Wine n.e.s.o.i. of fresh grapes or fortified wine, in containers not over 2 liters 2,210 2,4

2939.99 Vegetable alkaloids, natural or reproduced by synthesis, and their salts, ethers, esters and 

other derivatives, n.e.s.o.i. 252 2

8411.12 Turbojets of a thrust exceeding 25 kN 2,304 2,2

9021.39 Artificial parts of the body and parts and accessories thereof, n.e.s.o.i. 495 1,3

3004.39 Medicaments, in measured doses, containing hormones or derivatives/steroids used 

primarily as hormones, but not containing antibiotics, n.e.s.o.i. 2,128 2,1

9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. 1,589 1,7

3302.10 Mixtures of odoriferous substances and mixtures with a basis of these substances, used in 

the food or drink industries 2,016 1,9

3002.10 Antisera and other blood fractions, and modified immunological products 1,266 1,4

8502.31 Electric generating sets, wind-powered 885 1,7

2203.00 Beer made from malt 1,593 1,63303.00 Perfumes and toilet waters 1,232 1,3

8483.40 Gears/gearing (not toothed wheels), chain sprockets, like transmission elements; ball or 

roller screws; gear boxes and other speed changers 996 1,1

 Total of items shown 120,948 131,3

All other 209,950 220,8

 Total of all commodities 330,898 352,1

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl

a Includes 27 EU countries. 

A-46
A-47

TABLE A.24 U.S. merchandise trade with Canada, by SITC codes (revision 3), 2006-08 SITC Code No. Description 2006 2007 

Millions of $ 

Exports: 

0 Food and live animals 10,774 12,567 

1 Beverages and tobacco 639 786 

2 Crude materials, inedible, except fuels 6,078 6,772 

3 Mineral fuels, lubricants and related materials 8,414 9,933 4 Animal and vegetable oils, fats and waxes 319 424 

5 Chemicals and related products, n.e.s. 22,924 23,579 

6 Manufactured goods classified chiefly by material 29,326 30,630 

7 Machinery and transport equipment 94,285 99,532 

8 Miscellaneous manufactured articles 18,813 19,980 

9 Commodities and transactions not classified elsewhere in the SITC 6,655 8,916 

Total all exports commodities 198,226 213,119 

Imports: 

0 Food and live animals 13,760 15,151 

1 Beverages and tobacco 834 812 2 Crude materials, inedible, except fuels 13,425 12,612 

3 Mineral fuels, lubricants and related materials 72,853 78,179 

4 Animal and vegetable oils, fats and waxes 562 785 

5 Chemicals and related products, n.e.s. 22,176 24,320 

6 Manufactured goods classified chiefly by material 48,084 47,905 

7 Machinery and transport equipment 98,002 99,697 

8 Miscellaneous manufactured articles 16,452 15,881 

9 Commodities and transactions not classified elsewhere in the SITC 16,886 17,164 

Total all imports commodities 303,034 312,505 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specified.” 
A-48

TABLE A.25 Leading exports to Canada, by Schedule B subheading, 2006-08 Schedule B subheading Description 2006 2

Millions 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, 

cylinder capacity over 1,500 but not over 3,000 cc 5,831 6

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, 

cylinder capacity over 3,000 cc 6,563 7

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross 

vehicle weight not exceeding 5 mt 4,353 5

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. 5,169 52710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by 

weight of such products, not light 2,003 2

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc 3,957 4

2711.21 Natural gas, gaseous state 2,048 2

8708.40 Gear boxes for motor vehicles 2,579 2

2709.00 Petroleum oils and oils obtained from bituminous minerals, crude 850 

8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 733 1

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. 4,371 2

7112.91 Gold waste and scrap, including metal clad with gold but excluding sweepings containing other 

precious metals 1,013 1

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 

percent by weight of such products 460 

2716.00 Electrical energy 1,052 

8523.40 Optical media (a) 1

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. 1,728 1

7606.12 Rectangular plates, sheets and strip, over 0.2 mm thick, of aluminum alloy 1,369 1

8409.91 Parts for spark-ignition internal-combustion piston engines 1,408 1

8471.50 Digital processing units other than those of 8471.41 and 8471.49 994 18411.91 Parts for turbojets or turbopropellers 874 

8716.10 Trailers and semi-trailers for housing or camping 908 1

8708.50 Drive axles with differential for motor 883 1

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 949 

2601.12 Agglomerated iron ores and concentrates 602 

4901.99 Printed books, brochures, leaflets and similar printed matter, other than in single sheets 910 

 Total of items shown 51,606 58

All other 146,620 154

 Total of all commodities 198,226 213

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl

a Trade in 2006 reported under parts of items contained in Schedule B headings 8523 and 8524. 
A-49

TABLE A.26 Leading imports from Canada, by HTS subheading, 2006-08 HTS subheading Description 2006 

Million

2709.00 Petroleum oils and oils obtained from bituminous minerals, crude 32,889 372711.21 Natural gas, gaseous state 24,211 22

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder 

capacity over 3,000 cc 30,905 30

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by 

weight of such products, not light 5,216 6

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder 

capacity over 1,500 but not over 3,000 cc 5,588 6

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 

percent by weight of such products 4,219 4

2716.00 Electrical energy 2,518 2

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. 2,585 3

4407.10 Coniferous wood sawn or chipped lengthwise, sliced or peeled, of thickness exceeding 6mm 6,039 4

7601.10 Aluminum, not alloyed, unwrought 2,428 2

3104.20 Medicaments, for therapeutic or prophylactic uses, in measured doses, containing antibiotics other 

than penicillins 1,191 1

7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder 1,803 2

4802.61 Uncoated paper/paperboard for writing/printing/other graphic purposes n.e.s.o.i., over 10 percent fiber 

by mechanical process, in rolls 2,215 2

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. 3,088 32711.12 Propane, liquefied 1,791 1

7601.20 Unwrought aluminum alloys 2,884 2

4801.00 Newsprint, in rolls or sheets 2,987 2

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross 

vehicle weight not exceeding 5 mt 6,648 7

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. 4,833 3

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc 2,434 2

8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 1,828 2

4703.21 Chemical woodpulp, soda or sulfate, other than dissolving grades, semibleached or bleached, 

coniferous wood 1,656 1

7403.11 Refined copper, cathodes and sections of cathodes 1,315 1

3901.90 Polymers of ethylene n.e.s.o.i., in primary forms 1,310 1

0102.90 Bovine animals, live, n.e.s.o.i. 1,032 1

 Total of items shown 153,616 160

All other 149,418 151

 Total of all commodities 303,034 312

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl
A-50

TABLE A.27 U.S. merchandise trade with China, by SITC codes (revision 3), 2006-08 SITC Code No. Description 2006 2007 2008

% cha

200

Millions of $ 

Exports: 

0 Food and live animals 1,412 1,934 2,313 

1 Beverages and tobacco 81 91 142 2 Crude materials, inedible, except fuels 13,630 16,419 20,008 

3 Mineral fuels, lubricants and related materials 200 291 401 4 Animal and vegetable oils, fats and waxes 72 168 164 

5 Chemicals and related products, n.e.s. 6,153 8,303 9,136 

6 Manufactured goods classified chiefly by material 3,606 3,959 4,833 

7 Machinery and transport equipment 22,508 25,574 25,298 

8 Miscellaneous manufactured articles 3,475 3,718 4,200 

9 Commodities and transactions not classified elsewhere in the SITC 486 555 671 

Total all exports commodities 51,624 61,013 67,166 

Imports: 

0 Food and live animals 3,569 4,196 4,796 

1 Beverages and tobacco 30 43 40 

2 Crude materials, inedible, except fuels 1,488 1,578 1,760 

3 Mineral fuels, lubricants and related materials 1,089 641 2,023 2

4 Animal and vegetable oils, fats and waxes 23 34 47 

5 Chemicals and related products, n.e.s. 6,191 7,245 10,734 

6 Manufactured goods classified chiefly by material 36,258 40,196 43,644 

7 Machinery and transport equipment 131,221 148,085 151,524 

8 Miscellaneous manufactured articles 103,705 117,102 118,770 

9 Commodities and transactions not classified elsewhere in the SITC 3,478 3,966 4,166 

Total all imports commodities 287,052 323,085 337,504 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specified.” 
TABLE A.28 Leading exports to China, by Schedule B subheading, 2006-08

Schedule B subheading Description 2006 2

Millions o

1201.00 Soybeans, whether or not broken 2,530 4,8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 5,222 6,

8542.31 Electronic integrated circuits, processors or controllers (a) 2,

7404.00 Copper waste and scrap 1,439 1,

7602.00 Aluminum waste and scrap 1,484 1,

5201.00 Cotton, not carded or combed 2,059 1,

8542.32 Electronic integrated circuits, memories (a) 1,

7204.49 Ferrous waste and scrap, n.e.s.o.i. 495 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 716 

7204.29 Waste and scrap, of non-stainless alloy steel 648 

0207.14 Chicken cuts and edible offal, including livers, frozen 294 

8473.30 Parts and accessories for automated data processing machines and units 882 

4101.50 Whole raw bovine or equine hides and skins, weight exceeding 16 kilograms, fresh, pickled or 

preserved but not tanned or further prepared 635 

4707.90 Recovered waste and scrap paper or paperboard, n.e.s.o.i., including unsorted such waste and 

scrap 433 

4707.10 Waste and scrap of unbleached kraft paper or paperboard or of corrugated paper or paperboard 378 

8542.39 Electronic integrated circuits, n.e.s.o.i. (a) 

2603.00 Copper ores and concentrates 215 

8431.43 Parts for boring or sinking machinery, n.e.s.o.i. 260 

2804.61 Silicon, containing by weight not less than 99.99 percent of silicon 179 

4707.30 Recovered (waste and scrap) paper or paperboard, mainly of mechanical pulp (for example, 

newspapers, journals and similar printed matter) 223 

8517.62 Machines for the reception, conversion, transmission or regeneration of voice, images or other 

data, including switching/routing apparatus (b) 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston 

engine,cylinder capacity over 1,500 but not over 3,000 cc 253 

8486.20 Machines and apparatus for the manufacture of semiconductor devices or electronic integrated 

circuits © 

4703.21 Chemical woodpulp, soda or sulfate, other than dissolving grades, semibleached or bleached, 

coniferous wood 199 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, 

cylinder capacity over 3,000 cc 190 

 Total of items shown 18,734 27,

All other 32,890 33,

 Total of all commodities 51,624 61,

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl

a Trade in 2006 reported under parts of items contained in Schedule B subheadings 8542.21, 8542.29, and 8542.60. b Trade in 2006 reported under parts of items contained in Schedule B subheadings 8517.30, and 8517.50. c Trade in 2006 reported under parts of items contained in Schedule B chapters 84, 85, and 90. 

A-51
A-52

TABLE A.29 Leading imports from China, by HTS subheading, 2006-08 HTS subheading Description 2006 

Million

8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU, 

keyboard and display 12,828 1

8517.12 Telephones for cellular networks or for other wireless networks (

a

) 1

9503.00b Tricycles, scooters, similar wheeled toys; dolls, doll’s carriages, and other toys; puzzles; reduced scale 

models 8,545 

8473.30 Parts and accessories for automated data processing machines and units 11,328 

9504.10 Video games used with television receiver and parts and accessories 3,643 

8517.62 Machines for the reception, conversion, transmission or regeneration of voice, images or other data, 

including switching/routing apparatus 

© 

8528.51 Monitors, other than cathode-ray tube, designed for use with automatic data processing machines (

d

) 

6403.99 Footwear not covering the ankles, with outer soles of rubber or plastics or composition leather and 

uppers of leather 5,703 

8528.72 Reception apparatus for television, incorporating a screen or video display device, color (

e

) 

8525.80f Television cameras, digital cameras, and video camera recorders 3,264 

8528.59 Monitors, other than cathode-ray tube, not designed for use with automatic data processing machines (

g

) 

6402.99 Footwear with outer soles and uppers of rubber or plastics n.e.s.o.i. 2,860 8471.70 Automatic data processing storage units 2,925 

9504.90 Game machines except coin-operated; board games; mah-jog; dominoes; dice 2,087 

8443.99 Parts and accessories of printers, copying and facsimile machines, n.e.s.o.i. (

h

) 

8504.40 Static converters 2,400 8443.31 Machines that perform two or more of the functions of printing, copying, facsimile transmission, able to 

connect to a computer or network (

i

) 

8471.50 Digital processing units other than those of 8471.41 and 8471.49 1,966 

9403.60 Wooden furniture, other than of a kind used in the bedroom 2,829 

4202.92 Trunks, cases, bags and similar containers, with outer surface of plastic sheeting or of textile materials 2,110 

8528.71 Reception apparatus for television, not designed to incorporate a screen or video display device (

e

) 

7304.29 Casing and tubing, of circular cross section, of a kind used in drilling for oil or gas, of iron (except cast 

iron) or steel 542 

9403.20 Metal furniture, other than of a kind used in offices 1,861 

6110.20 Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of cotton 1,046 

6403.91 Footwear covering the ankles, with outer soles and uppers of rubber or plastics, excluding waterproof 

footwear 1,682 

 Total of items shown 67,618 11

All other 219,434 20

 Total of all commodities 287,052 32
A-53

TABLE A.29 Leading imports from China, by HTS subheading, 2006-08 – Continued

HTS subheading Description 2006 

Million

All other 231,243 20

 Total of all commodities 287,052 32

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl

a Trade in 2006 reported under parts of items contained in HTS subheading 8425.20. b Trade in 2006 reported under HTS headings 9501, 9502, and 9503. c Trade in 2006 reported under parts of items contained in HTS subheadings 8517.30, 8517.50, and 8525.10. d Trade in 2006 reported under parts of items contained in HTS subheading 8471.60. e Trade in 2006 reported under parts of items contained in HTS subheadings 8528.12 and 8528.13. f Trade in 2006 reported under HTS subheadings 8525.30 and 8525.40. g Trade in 2006 reported under parts of items contained in HTS subheadings 8528.21 and 8528.22. h Trade in 2006 reported under parts of items contained in HTS headings 8472, 8473, 8517, 8529, and 9009. i Trade in 2006 reported under parts of items contained in HTS subheading 8471.60. 
TABLE A.30 U.S. merchandise trade with Mexico, by SITC codes (revision 3), 2006-08 

SITC Code No. Description 2006 2007 2008

% cha

2007

Millions of $ 

Exports: 

0 Food and live animals 8,009 9,169 11,285 

1 Beverages and tobacco 144 191 237 

2 Crude materials, inedible, except fuels 4,568 4,771 6,721 

3 Mineral fuels, lubricants and related materials 5,701 6,753 11,082 

4 Animal and vegetable oils, fats and waxes 375 598 868 

5 Chemicals and related products, n.e.s. 15,934 16,705 18,464 6 Manufactured goods classified chiefly by material 18,528 18,767 19,640 

7 Machinery and transport equipment 46,221 46,959 47,709 

8 Miscellaneous manufactured articles 10,457 10,562 10,271 

9 Commodities and transactions not classified elsewhere in the SITC 4,625 4,906 5,229 

Total all exports commodities 114,562 119,381 131,507 

Imports: 

0 Food and live animals 7,753 8,518 9,240 1 Beverages and tobacco 2,463 2,530 2,464 

2 Crude materials, inedible, except fuels 1,224 1,293 1,589 

3 Mineral fuels, lubricants and related materials 32,161 33,530 42,646 

4 Animal and vegetable oils, fats and waxes 53 68 87 

5 Chemicals and related products, n.e.s. 3,982 3,801 3,937 6 Manufactured goods classified chiefly by material 14,983 15,948 15,909 

7 Machinery and transport equipment 104,474 113,988 110,794 

8 Miscellaneous manufactured articles 21,857 22,071 20,711 

9 Commodities and transactions not classified elsewhere in the SITC 8,104 8,413 8,952 

Total all imports commodities 197,056 210,159 216,328 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specified.” 

A-54
A-55

TABLE A.31 Leading exports to Mexico, by Schedule B subheading, 2006-08 Schedule B subheading Description 2006 

Mi

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 

percent by weight of such products 3,219 

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent 

by weight of such products, not light 1,497 

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. 2,899 1005.90 Corn (maize), other than seed 1,079 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, 

cylinder capacity over 1,500 but not over 3,000 cc 1,475 

8473.30 Parts and accessories for automated data processing machines and units 1,244 

1201.00 Soybeans, whether or not broken 907 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. 2,114 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, 

cylinder capacity over 3,000 cc 1,520 

3926.90 Articles of plastics and articles of other materials of headings 3901 to 3914, n.e.s.o.i. 1,599 

8538.90 Parts for electrical apparatus for electrical circuits; for electrical control n.e.s.o.i. 1,528 

8408.20 Compression-ignition internal-combustion piston engines 1,493 

1001.90 Wheat and meslin, excluding durum wheat 418 

7326.90 Articles of iron or steel n.e.s.o.i. 1,065 

8536.90 Electrical apparatus for switching or protecting electrical circuits, n.e.s.o.i. 1,094 

8544.49 Insulated electric conductors, for a voltage not exceeding 80 volts, not fitted with connectors, 

n.e.s.o.i. 678 

3902.10 Polypropylene, in primary forms 746 

0201.30 Meat of bovine animals, boneless, fresh or chilled 755 8708.40 Gear boxes for motor vehicles 532 

3901.20 Polyethylene having a specific gravity of 0.94 or more, in primary forms 587 

7408.11 Wire of refined copper, with a maximum cross sectional dimension over 6 millimeters 926 

8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. 919 

2902.43 Para-xylene 647 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc 399 

7606.12 Rectangular plates, sheets and strip, over 0.2 mm thick, of aluminum alloy 568 

 Total of items shown 29,908 

All other 84,654 

 Total of all commodities 114,562 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified o
A-56

TABLE A.32 Leading imports from Mexico, by HTS subheading, 2006-08 HTS subheading Description 2006 2709.00 Petroleum oils and oils obtained from bituminous minerals, crude 29,195 8528.72 Reception apparatus for television, incorporating a screen or video display device, color (a) 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder 

capacity over 1,500 but not over 3,000 cc 10,639 

8704.31 Motor vehicles for transporting goods, with spark-ignition internal-combustion piston engine, gross 

vehicle weight not exceeding 5 mt 4,694 

8517.12 Telephones for cellular networks or for other wireless networks (b) 

8471.50 Digital processing units other than those of 8471.41 and 8471.49 3,644 8544.30 Insulated ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships 4,285 8528.71 Reception apparatus for television, not designed to incorporate a screen or video display device (a) 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder 

capacity over 3,000 cc 3,040 

9401.90 Parts of seats (except medical, barbers, dentist, etc.) 3,111 

8517.62 Machines for the reception, conversion, transmission or regeneration of voice, images or other data, 

including switching/routing apparatus (c) 

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by 

weight of such products, not light 1,199 

8517.70 Parts of telecommunications apparatus (d) 

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 

percent by weight of such products 1,365 

9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. 1,555 8537.10 Boards, panels, consoles, other components incorporating apparatus for control or distribution of 

electricity, for voltage not exceeding 1,000 volts 1,663 

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. 3,012 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. 2,583 

8418.10 Combined refrigerator-freezers, fitted with separate external doors 1,702 8409.91 Parts for spark-ignition internal-combustion piston engines 1,493 

2203.00 Beer made from malt 1,600 7106.91 Silver, other than powder, unwrought 973 

8704.22 Motor vehicles for goods transport n.e.s.o.i., with compression-ignition internal combustion piston 

engine, weighing 5 to 20 metric tons 802 

8407.34 Reciprocating spark-ignition piston engines, of a cylinder capacity over 1,000 cc 1,453 

6203.42 

Men’s or boys’ trousers, bib and brace overalls, breeches and shorts not knitted or crocheted, of 

cotton 1,328 

 Total of items shown 79,337 
A-57

TABLE A.32 Leading imports from Mexico, by HTS subheading, 2006-08 - Continued

HTS subheading Description 2006 

Million

All other 117,718 10

 Total of all commodities 197,056 21

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl

a Trade in 2006 reported under parts of items contained in HTS subheadings 8528.12 and 8528.13. b Trade in 2006 reported under parts of items contained in HTS subheading 8425.20. c Trade in 2006 reported under parts of items contained in HTS subheadings 8517.30, 8517.50, and 8525.10. d Trade in 2006 reported under parts of items contained in HTS subheadings 8473.30, 8517.90, and 8529.10. 
A-58

TABLE A.33 U.S. merchandise trade with Japan, by SITC codes (revision 3), 2006-08 

SITC Code No. Description 2006 2007 2008

Millions of $ 

Exports: 

0 Food and live animals 7,805 9,063 11,905 

1 Beverages and tobacco 1,244 1,045 847 2 Crude materials, inedible, except fuels 3,566 4,234 4,820 

3 Mineral fuels, lubricants and related materials 601 534 1,319 

4 Animal and vegetable oils, fats and waxes 65 78 77 

5 Chemicals and related products, n.e.s. 8,459 9,217 10,299 

6 Manufactured goods classified chiefly by material 3,293 3,682 3,412 

7 Machinery and transport equipment 20,631 20,609 19,378 

8 Miscellaneous manufactured articles 8,572 8,338 8,010 9 Commodities and transactions not classified elsewhere in the SITC 1,358 1,295 1,370 

Total all exports commodities 55,596 58,096 61,435 

Imports: 

0 Food and live animals 447 483 546 1 Beverages and tobacco 47 53 65 

2 Crude materials, inedible, except fuels 443 595 626 

3 Mineral fuels, lubricants and related materials 956 1,176 575 

4 Animal and vegetable oils, fats and waxes 26 27 39 

5 Chemicals and related products, n.e.s. 7,826 8,368 8,532 

6 Manufactured goods classified chiefly by material 8,797 8,385 8,596 7 Machinery and transport equipment 113,408 110,265 105,462 

8 Miscellaneous manufactured articles 11,401 11,227 10,916 

9 Commodities and transactions not classified elsewhere in the SITC 4,720 4,348 3,755 

Total all imports commodities 148,071 144,928 139,112 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specifie
A-59

TABLE A.34 Leading exports to Japan, by Schedule B subheading, 2006-08 Schedule B subheading Description 2006 

Millio

1005.90 Corn (maize), other than seed 1,981 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 3,440 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 1,904 

1001.90 Wheat and meslin, excluding durum wheat 569 

1201.00 Soybeans, whether or not broken 864 

8411.91 Parts for turbojets or turbopropellers 979 3004.90 

Certain medicaments put up in measure doses or in forms or packings for retail sale, 

n.e.s.o.i. 764 

2804.61 Silicon, containing by weight not less than 99.99 percent of silicon 594 

8486.20 Machines and apparatus for the manufacture of semiconductor devices or electronic 

integrated circuits (a) 

0203.19 Meat of swine, n.e.s.o.i, fresh or chilled 491 0203.29 Meat of swine, n.e.s.o.i., frozen 336 9018.90 Medical, surgical, dental or veterinary sciences instruments, appliances, and parts, n.e.s.o.i. 570 

2402.20 Cigarettes containing tobacco 931 9018.39 

Medical etc. needles n.e.s.o.i., catheters, cannulae and the like; parts and accessories 

thereof 409 

2844.20 Uranium and its compounds enriched in u235; plutonium and its compounds 551 

3822.00 Composite diagnostic or laboratory reagents, except pharmaceuticals 447 

1214.90 Rutabagas (swedes), mangolds, fodder roots, hay, clover, kale, vetches, and other forage 

products, n.e.s.o.i., whether or not in pellet form 354 

4403.20 Coniferous wood in the rough, not treated 449 

2713.11 Petroleum coke, not calcined 134 8517.62 Machines for the reception, conversion, transmission or regeneration of voice, images or 

other data, including switching/routing apparatus (b) 

8411.12 Turbojets of a thrust exceeding 25 kN 98 

9306.90 Bombs, grenades, torpedoes, mines, missiles, etc., and parts 281 

8529.90 Parts, except antennas, for transmission, radar, radio, television, etc., n.e.s.o.i. 675 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. 496 

2711.11 Natural gas, liquefied 161 

 Total of items shown 17,477 

All other 38,119 

 Total of all commodities 55,596 

Source: Compiled from official statistics of the U.S. Department of Commerce. Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified o

a Trade in 2006 reported under parts of items contained in Schedule B chapters 84, 85, and 90. b Trade in 2006 reported under parts of items contained in Schedule B subheadings 8517.30, and 8517.50. 
A-60

TABLE A.35 Leading imports from Japan, by HTS subheading, 2006-08 HTS subheading Description 2006 8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder 

capacity over 3,000 cc 20,483 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder 

capacity over 1,500 but not over 3,000 cc 17,459 

8703.22 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine over 1,000 

but over 1,500 cc 5,692 

8443.99 Parts and accessories of printers, copying and facsimile machines, n.e.s.o.i. (a) 

8525.80b Television cameras, digital cameras, and video camera recorders 3,431 

8708.40 Gear boxes for motor vehicles 2,586 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. 3,135 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 1,428 

8486.20 Machines and apparatus for the manufacture of semiconductor devices or electronic integrated circuits (c) 

8429.52 Self-propelled mechanical shovels and excavators, with a 360-degree revolving superstructure 2,004 

8409.91 Parts for spark-ignition internal-combustion piston engines 1,203 

3818.00 Chemical elements doped for use in electronics, in the form of discs, wafers, similar forms; chemical 

compounds doped for use in electronics 886 

3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. 1,034 

8411.91 Parts for turbojets or turbopropellers 714 

8701.90 Tractors, n.e.s.o.i. 1,069 

8711.50 Motorcycles and cycles, with an auxiliary motor, with a reciprocating internal combustion piston engine, 

cylinder capacity over 800 cc 1,192 

8542.32 Electronic integrated circuits, memories (d) 

8471.30 Portable digital automated data processing machines not exceeding 10 kg, with at least a CPU, 

keyboard and display 1,022 

4011.10 New pneumatic tires, of rubber, of a kind used on motor cars, including station wagons and racing cars 829 

8523.29 Magnetic media, other than cards incorporating a magnetic stripe (e) 

8541.40 Photosensitive semiconductor devices, including photovoltaic cells; light-emitting diodes 592 

8457.10 Machining centers for working metal 584 

9018.19 Electro-diagnostic apparatus n.e.s.o.i., and parts 606 

9002.11 Objective lenses and parts and accessories thereof for cameras, projectors or photographic enlargers or 

reducers 479 

8542.31 Electronic integrated circuits, processors or controllers (d) 

 Total of items shown 66,430 

All other 81,641 

 Total of all commodities 148,071 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified o

a Trade in 2006 reported under parts of items contained in HTS headings 8472, 8473, 8517, 8529, and 9009. b Trade in 2006 reported under HTS subheadings 8525.30 and 8525.40. c Trade in 2006 reported under parts of items contained in HTS chapters 84, 85, and 90. d Trade in 2006 reported under parts of items contained in HTS subheadings 8542.21, 8542.29, and 8542.60. e Trade in 2006 reported under parts of items contained in HTS headings 8523 and 8524.
A-61

TABLE A.36 U.S. merchandise trade with Korea, by SITC codes (revision 3), 2006-08 SITC Code No. Description 2006 2007 2008

% 

Millions of $ 

Exports: 

0 Food and live animals 2,478 2,987 4,915 

1 Beverages and tobacco 65 76 61 

2 Crude materials, inedible, except fuels 2,082 3,002 3,518 

3 Mineral fuels, lubricants and related materials 872 779 1,104 

4 Animal and vegetable oils, fats and waxes 61 101 141 

5 Chemicals and related products, n.e.s. 4,331 5,252 4,902 

6 Manufactured goods classified chiefly by material 1,289 1,480 1,705 

7 Machinery and transport equipment 15,895 14,692 12,600 

8 Miscellaneous manufactured articles 3,281 4,112 3,564 9 Commodities and transactions not classified elsewhere in the SITC 439 532 564 

Total all exports commodities 30,794 33,012 33,074 

Imports: 

0 Food and live animals 246 261 279 

1 Beverages and tobacco 67 69 74 

2 Crude materials, inedible, except fuels 317 314 459 

3 Mineral fuels, lubricants and related materials 1,858 2,332 1,497 

4 Animal and vegetable oils, fats and waxes 1 1 1 

5 Chemicals and related products, n.e.s. 1,857 1,919 2,239 

6 Manufactured goods classified chiefly by material 5,828 5,508 6,201 

7 Machinery and transport equipment 30,958 31,534 32,206 

8 Miscellaneous manufactured articles 2,697 2,520 2,678 

9 Commodities and transactions not classified elsewhere in the SITC 884 911 1,053 

Total all imports commodities 44,714 45,368 46,687 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specified.” 
A-62

TABLE A.37 Leading exports to Korea, by Schedule B subheading, 2006-08 Schedule B subheading Description 2006 1005.90 Corn (maize), other than seed 723 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 2,351 

8541.29 Transistors, other than photosensitive, with a dissipation rate greater than or equal to 1 watt 16 7204.49 Ferrous waste and scrap, n.e.s.o.i. 75 8486.20 Machines and apparatus for the manufacture of semiconductor devices or electronic integrated circuits (a) 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 846 1001.90 Wheat and meslin, excluding durum wheat 188 2926.10 Acrylonitrile 316 

8479.89 Machines and mechanical appliances having individual functions, n.e.s.o.i. 1,381 

7602.00 Aluminum waste and scrap 258 

9030.82 Other instruments and apparatus for measuring or checking semiconductor wafers or devices 106 

8542.31 Electronic integrated circuits, processors or controllers (b) 

8411.91 Parts for turbojets or turbopropellers 261 

8542.39 Electronic integrated circuits, n.e.s.o.i. (b) 

8541.50 Other semiconductor devices, n.e.s.o.i. 116 

2707.99 Oils and products of the distillation of high temperature coal tar, n.e.s.o.i.; similar products with 

predominate aromatic constituent 187 

8542.32 Electronic integrated circuits, memories (b) 

8431.43 Parts for boring or sinking machinery, n.e.s.o.i. 41 

8486.90 Parts and accessories of machines and apparatus used in the manufacture of semiconductors, flat 

panels, or electronic integrated circuits (a) 

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by 

weight of such products, not light 298 

8542.90 Parts for electronic integrated circuits and microassemblies 128 

8537.10 Boards, panels, consoles, other components incorporating apparatus for control or distribution of 

electricity, for voltage not exceeding 1,000 volts 128 

7404.00 Copper waste and scrap 182 2844.20 Uranium and its compounds enriched in u235; plutonium and its compounds 127 

1201.00 Soybeans, whether or not broken 113 

 Total of items shown 7,842 

All other 22,952 

 Total of all commodities 30,794 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified 

a Trade in 2006 reported under parts of items contained in Schedule B chapters 84, 85, and 90. b Trade in 2006 reported under parts of items contained in Schedule B subheadings 8542.21, 8542.29, and 8542.60. 
A-63

TABLE A.38 Leading imports from Korea, by HTS subheading, 2006-08 HTS subheading Description 2006 8517.12 Telephones for cellular networks or for other wireless networks (

a

) 

8703.23 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder 

capacity over 1,500 but not over 3,000 cc 6,121 

8703.24 Passenger motor vehicles with spark-ignition internal-combustion reciprocating piston engine, cylinder 

capacity over 3,000 cc 2,974 

8473.30 Parts and accessories for automated data processing machines and units 2,076 

8542.39 Electronic integrated circuits, n.e.s.o.i. (

b

) 

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by 

weight of such products, not light 1,438 

8542.32 Electronic integrated circuits, memories (

b

) 

8418.10 Combined refrigerator-freezers, fitted with separate external doors 400 

4011.10 New pneumatic tires, of rubber, of a kind used on motor cars, including station wagons and racing cars 502 

2902.20 Benzene 438 8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. 723 

9013.80 Optical devices, appliances and instruments, n.e.s.o.i. 42 

8542.31 Electronic integrated circuits, processors or controllers (

b

) 

8517.70 Parts of telecommunications apparatus (

c

) 

8450.20 Household- or laundry-type washing machines, with a dry linen capacity exceeding 10 kilograms 140 7306.29 Seamed or welded iron or steel casing or tubing, of non-circular cross section, of kind used in drilling for oil 

or gas, not stainless (

d

) 

2710.11 Light oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by 

weight of such products 383 

8451.29 Drying machines for textile yarns, fabrics, or made up textile articles, with a dry linen capacity exceeding 10 

kilograms 171 

8517.62 Machines for the reception, conversion, transmission or regeneration of voice, images or other data, 

including switching/routing apparatus (

e

) 

8504.23 Liquid dielectric transformers having a power handling capacity exceeding 10,000 kva 96 

8471.70 Automatic data processing storage units 155 

8429.52 Self-propelled mechanical shovels and excavators, with a 360-degree revolving superstructure 436 

4810.19 Writing/graphic paper and paperboard, coated with kaolin, not over 10% fiber obtained by a mechanical 

process, in sheets, n.e.s.o.i. 218 

7208.38 Flat-rolled products of iron or nonalloy steel in coils n.e.s.o.i., of a thickness of 3 mm but less than 4.75 mm 194 

8528.51 Monitors, other than cathode-ray tube, designed for use with automatic data processing machines (

f

) 

 Total of items shown 16,507 
A-64

TABLE A.38 Leading imports from Korea, by HTS subheading, 2006-08 – Continued

HTS subheading Description 2006 

Mill

All other 28,207 

 Total of all commodities 44,714 

Source: Compiled from official statistics of the U.S. Department of Commerce. Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or incl

a Trade in 2006 reported under parts of items contained in HTS subheading 8425.20. b Trade in 2006 reported under parts of items contained in HTS subheadings 8542.21, 8542.29, and 8542.60. c Trade in 2006 reported under parts of items contained in HTS subheadings 8473.30, 8517.90, and 8529.10. d Trade in 2006 reported under parts of items contained in HTS subheading 7306.20. e Trade in 2006 reported under parts of items contained in HTS subheadings 8517.30, 8517.50, and 8525.10. f Trade in 2006 reported under parts of items contained in HTS subheading 8471.60. 
A-65

TABLE A.39 U.S. merchandise trade with Taiwan, by SITC codes (revision 3), 2006-08 SITC Code No. Description 2006 2007 200

Millions of $ 

Exports: 

0 Food and live animals 1,564 1,951 2,12

1 Beverages and tobacco 62 49 4

2 Crude materials, inedible, except fuels 1,683 2,449 3,05

3 Mineral fuels, lubricants and related materials 76 96 26

4 Animal and vegetable oils, fats and waxes 5 18 2

5 Chemicals and related products, n.e.s. 3,209 3,685 3,67

6 Manufactured goods classified chiefly by material 1,123 1,210 1,41

7 Machinery and transport equipment 10,641 12,056 10,81

8 Miscellaneous manufactured articles 2,582 2,548 1,719 Commodities and transactions not classified elsewhere in the SITC 432 479 48

Total all exports commodities 21,376 24,541 23,62

Imports: 

0 Food and live animals 242 259 30

1 Beverages and tobacco 10 10 1

2 Crude materials, inedible, except fuels 233 296 32

3 Mineral fuels, lubricants and related materials 410 642 27

4 Animal and vegetable oils, fats and waxes 6 7 5 Chemicals and related products, n.e.s. 1,090 1,072 1,25

6 Manufactured goods classified chiefly by material 6,455 6,198 5,98

7 Machinery and transport equipment 22,343 22,200 21,40

8 Miscellaneous manufactured articles 5,973 5,906 5,329 Commodities and transactions not classified elsewhere in the SITC 1,324 1,463 1,31

Total all imports commodities 38,086 38,052 36,20

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specifie
TABLE A.40 Leading exports to Taiwan, by Schedule B subheading, 2006-08 

Schedule B subheading Description 208542.32 Electronic integrated circuits, memories 8542.31 Electronic integrated circuits, processors or controllers 

8486.20 Machines and apparatus for the manufacture of semiconductor devices or electronic integrated circuits 

1201.00 Soybeans, whether or not broken 48802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 9

1005.90 Corn (maize), other than seed 5

7204.49 Ferrous waste and scrap, n.e.s.o.i. 1

8542.39 Electronic integrated circuits, n.e.s.o.i. 

8486.90 Parts and accessories of machines and apparatus used in the manufacture of semiconductors, flat 

panels, or electronic integrated circuits 

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 5

7204.21 Waste and scrap, of stainless steel 11001.90 Wheat and meslin, excluding durum wheat 18475.90 Parts of machines for assembling electric/electronic lamps, tubes or flashbulbs, in glass envelopes, for 

manufacturing or hot working glass 1

7602.00 Aluminum waste and scrap 17004.90 Drawn glass and blown glass, in sheets, whether or not having an absorbent or reflecting layer, but not 

otherwise worked, n.e.s.o.i. 

A-66

2844.20 Uranium and its compounds enriched in u235; plutonium and its compounds 

9030.82 Other instruments and apparatus for measuring or checking semiconductor wafers or devices 3

8419.89 Machinery, plant or laboratory equipment, for the treatment of material involving temperature change, 

not for domestic purposes, n.e.s.o.i. 

8486.30 Machines and apparatus for the manufacture of flat panel displays 

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by 

weight of such products, not light 

2902.50 Styrene (vinylbenzene; phenylethylene) 

2926.10 Acrylonitrile 2

8543.90 Parts for electrical machines and apparatus, having individual functions, n.e.s.o.i. 15201.00 Cotton, not carded or combed 1

9031.41 Optical instruments for inspecting semiconductor wafers or devices, or photomasks or reticles used in 

manufacturing these items 3

 Total of items shown 4,6

All other 16,6

 Total of all commodities 21,3

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified o

a Trade in 2006 reported under parts of items contained in Schedule B subheadings 8542.21, 8542.29, and 8542.60. b Trade in 2006 reported under parts of items contained in Schedule B chapters 84, 85, and 90. c U.S. value is less than $500,000. d Percent change is more than 10,000 percent. 
A-67

TABLE A.41 Leading imports from Taiwan, by HTS subheading, 2006-08 HTS subheading Description 8542.39 Electronic integrated circuits, n.e.s.o.i. 8517.12 Telephones for cellular networks or for other wireless networks 

8526.91 Radio navigational aid apparatus 

8473.30 Parts and accessories for automated data processing machines and units 

8528.71 Reception apparatus for television, not designed to incorporate a screen or video display device 

8542.32 Electronic integrated circuits, memories 

8542.31 Electronic integrated circuits, processors or controllers 8523.40 Optical media 7318.15 Threaded screws and bolts, of iron or steel, n.e.s.o.i., whether or not with their nuts or washers 

7318.14 Self-tapping screws of iron or steel 

8512.20 Electrical lighting or visual signaling equipment, for use on cycles or motor vehicles, except for use on 

bicycles 

8534.00 Printed circuits 

8708.29 Parts and accessories of bodies (including cabs) for motor vehicles, n.e.s.o.i. 

8504.40 Static converters 8481.80 Taps, cocks, valves and similar appliances, n.e.s.o.i. 8712.00 Bicycles and other cycles (including delivery tricycles), not motorized 

7318.16 Nuts, threaded, of iron or steel 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. 

8517.62 Machines for the reception, conversion, transmission or regeneration of voice, images or other data, 

including switching/routing apparatus 

8523.51 Solid state nonvolatile semiconductor storage devices 9506.91 Gymnasium, playground or other exercise articles and equipment; parts and accessories thereof 8471.80 Other units of automated data processing machines 

8541.40 Photosensitive semiconductor devices, including photovoltaic cells; light-emitting diodes 

9403.20 Metal furniture, other than of a kind used in offices 

8481.90 Parts of taps, cocks, valves, and similar items for pipes, vats or the like, including pressure reducing, 

thermostatically controlled valves 

 Total of items shown 

All other 3

 Total of all commodities 3

Source: Compiled from official statistics of the U.S. Department of Commerce. Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specifie

a Trade in 2006 reported under parts of items contained in HTS subheadings 8542.21, 8542.29, and 8542.60. b Trade in 2006 reported under parts of items contained in HTS subheading 8425.20. c Trade in 2006 reported under parts of items contained in HTS subheadings 8528.12 and 8525.13. d Trade in 2006 reported under parts of items contained in HTS headings 8523 and 8524. e Trade in 2006 reported under parts of items contained in HTS subheadings 8517.30, 8517.50, and 8525.10. 
A-68

TABLE A.42 U.S. merchandise trade with Brazil, by SITC codes (revision 3), 2006-08 

SITC Code No. Description 2006 2007 200

Millions of $ 

Exports: 

0 Food and live animals 134 268 53

1 Beverages and tobacco 8 10 2 Crude materials, inedible, except fuels 455 533 59

3 Mineral fuels, lubricants and related materials 812 982 2,23

4 Animal and vegetable oils, fats and waxes 7 15 1

5 Chemicals and related products, n.e.s. 4,124 5,398 6,90

6 Manufactured goods classified chiefly by material 818 1,106 1,75

7 Machinery and transport equipment 9,175 11,346 14,56

8 Miscellaneous manufactured articles 1,125 1,569 1,849 Commodities and transactions not classified elsewhere in the SITC 320 458 56

Total all exports commodities 16,977 21,684 29,02

Imports: 

0 Food and live animals 1,920 2,257 2,181 Beverages and tobacco 254 298 31

2 Crude materials, inedible, except fuels 1,899 1,952 2,21

3 Mineral fuels, lubricants and related materials 3,572 3,970 8,41

4 Animal and vegetable oils, fats and waxes 20 29 35 Chemicals and related products, n.e.s. 2,166 1,691 1,99

6 Manufactured goods classified chiefly by material 7,097 6,503 6,39

7 Machinery and transport equipment 6,587 6,186 6,578 Miscellaneous manufactured articles 1,764 1,581 1,18

9 Commodities and transactions not classified elsewhere in the SITC 889 551 75

Total all imports commodities 26,169 25,018 30,06

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specifie
TABLE A.43 Leading exports to Brazil, by Schedule B subheading, 2006-08 

Schedule B subheading Description 2006 

Million

8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 1,193 8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 779 

8411.11 Turbojets of a thrust not exceeding 25 kilonewtons 603 2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent by 

weight of such products, not light 196 

2701.12 Bituminous coal, whether or not pulverized, but not agglomerated 413 8411.91 Parts for turbojets or turbopropellers 346 

8431.43 Parts for boring or sinking machinery, n.e.s.o.i. 842 3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. 360 

8602.10 Diesel-electric locomotives 65 2902.50 Styrene (vinylbenzene; phenylethylene) 113 

8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg 178 

8517.62 Machines for the reception, conversion, transmission or regeneration of voice, images or other data, 

including switching/routing apparatus (a) 

1001.90 Wheat and meslin, excluding durum wheat 3 

8708.99 Parts and accessories for motor vehicles, n.e.s.o.i. 299 3105.40 Ammonium dihydrogenorthophosphate (monoammonium phosphate), mixtures thereof with 

diammonium hydrogenorthophosphate (diammonium phosphate) (b) 

) 

2815.12 Sodium hydroxide (caustic soda), in aqueous solution (soda lye or liquid soda) 117 8473.30 Parts and accessories for automated data processing machines and units 526 3904.10 Polyvinyl chloride, not mixed with any other substances, in primary forms 1 3105.30 Diammonium hydrogenorthophosphate (diammonium phosphate) (b 2713.11 Petroleum coke, not calcined 61 

8431.49 Parts and attachments for derricks, cranes, self-propelled bulldozers, graders, and other grading, 

scraping machinery, n.e.s.o.i. 184 

8411.82 Gas turbines, except turbojets and turbopropellers, of a power not exceeding 5,000 Kw 25 

2930.90 Organo-sulfur compounds, n.e.s.o.i. 61 

2713.12 Petroleum coke, calcined 86 

8409.99 Parts for use with compression-ignition internal combustion piston engines 86 

 Total of items shown 6,536 

All other 10,441 

 Total of all commodities 16,977 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified or included.

a Trade in 2006 reported under parts of items contained in Schedule B subheadings 8517.30 and 8517.50. b Exports aggregated with other fertilizer products under schedule B item 3100.00.0000 to prevent disclosure of individual firm data. c Not applicable. 

A-69
A-70

TABLE A.44 Leading imports from Brazil, by HTS subheading, 2006-08 HTS subheading Description 2006 2

Millions of 

2709.00 Petroleum oils and oils obtained from bituminous minerals, crude 2,546 2,7201.10 Nonalloy pig iron containing 0.5 percent or less phosphorus by weight, in primary 

forms 1,079 1,

8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 708 1,

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, 

minimum 70 percent by weight of such products, not light 693 

4703.29 Chemical woodpulp, soda, or sulfate, other than dissolving grades, semibleached or 

bleached, nonconiferous 567 

0901.11 Coffee, not roasted, not decaffeinated 526 

2207.10 Ethyl alcohol, undenatured, of an alcoholic strength by volume of 80 percent or 

higher 968 

7207.12 Semifinished iron/nonalloy steel products, under 0.25 percent carbon, 

rectangular/not square, width not less than twice thickness 435 

8412.90 Parts for engines and motors, n.e.s.o.i. 15 

6802.93 Worked monumental or building stone n.e.s.o.i., of granite 453 

8409.99 Parts for use with compression-ignition internal combustion piston engines 398 

2713.11 Petroleum coke, not calcined 65 

6403.99 Footwear not covering the ankles, with outer soles of rubber or plastics or 

composition leather and uppers of leather 593 

2401.20 Tobacco, partly or wholly stemmed/stripped 230 

1602.50 Other prepared or preserved meat, meat offal, or blood, of bovine animals, n.e.s.o.i. 292 

4011.10 New pneumatic tires, of rubber, of a kind used on motor cars, including station 

wagons and racing cars 94 

8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg 447 

2902.20 Benzene 231 

7202.93 Ferroniobium 102 7601.20 Unwrought aluminum alloys 251 

2818.20 Aluminum oxide, other than artificial corundum 22 

8414.30 Compressors of a kind used in refrigerating equipment, including air conditioning 249 2711.29 Petroleum gases and other gaseous hydrocarbons, other than natural gas, in a 

gaseous state 32 

8429.20 Graders and levelers, self-propelled 133 

2804.69 Silicon, containing by weight less than 99.99 percent of silicon 81 

 Total of items shown 11,210 11,

All other 14,959 13,

 Total of all commodities 26,169 25,

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specifie
A-71

TABLE A.45 U.S. merchandise trade with India, by SITC codes (revision 3), 2006-08 SITC Code No. Description 2006 2007 2008

Millions of $ 

Exports: 

0 Food and live animals 264 333 335 

1 Beverages and tobacco 3 4 4 

2 Crude materials, inedible, except fuels 591 909 975 

3 Mineral fuels, lubricants and related materials 390 397 881 

4 Animal and vegetable oils, fats and waxes 19 15 4 

5 Chemicals and related products, n.e.s. 1,773 2,233 4,790 

6 Manufactured goods classified chiefly by material 739 1,315 2,173 7 Machinery and transport equipment 4,071 9,231 6,123 8 Miscellaneous manufactured articles 970 1,220 1,210 

9 Commodities and transactions not classified elsewhere in the SITC 206 653 847 

Total all exports commodities 9,025 16,309 17,340 

Imports: 

0 Food and live animals 894 905 1,024 

1 Beverages and tobacco 17 21 33 

2 Crude materials, inedible, except fuels 373 358 535 

3 Mineral fuels, lubricants and related materials 284 769 337 4 Animal and vegetable oils, fats and waxes 46 58 103 5 Chemicals and related products, n.e.s. 1,997 2,755 3,892 6 Manufactured goods classified chiefly by material 8,126 8,830 10,026 

7 Machinery and transport equipment 2,732 3,049 3,633 

8 Miscellaneous manufactured articles 6,877 6,776 5,946 

9 Commodities and transactions not classified elsewhere in the SITC 328 337 336 

Total all imports commodities 21,674 23,857 25,866 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.” stands for “not elsewhere specifie
A-72

TABLE A.46 Leading exports to India, by Schedule B subheading, 2006-08 Schedule B subheading Description 2006 20

Millions o

3105.30 Diammonium hydrogenorthophosphate (diammonium phosphate) (

a

) 

8802.40 Airplanes and other aircraft, of an unladen weight exceeding 15,000 kg 1,313 5,6

7102.39 Nonindustrial diamonds, n.e.s.o.i. 232 5

7108.12 Nonmonetary gold (including gold plated with platinum), unwrought, excluding powder (

c

) 3

2707.99 Oils and products of the distillation of high temperature coal tar, n.e.s.o.i.; similar 

products with predominate aromatic constituent 218 1

2701.12 Bituminous coal, whether or not pulverized, but not agglomerated 101 7204.49 Ferrous waste and scrap, n.e.s.o.i. 78 1

2809.20 Phosphoric acid and polyphosphoric acids (

a) 

) 

8517.62 Machines for the reception, conversion, transmission or regeneration of voice, images 

or other data,including switching/routing apparatus (

d

) 1

8431.43 Parts for boring or sinking machinery, n.e.s.o.i. 107 1

8802.30 Airplanes and aircraft, of an unladen weight over 2,000 kg but not over 15,000 kg 92 1

0802.11 Almonds, fresh or dried, in shell 114 17113.19 Articles of jewelry and parts thereof, of precious metal (excluding silver) 101 8803.30 Parts of airplanes or helicopters, n.e.s.o.i. 67 1

3105.40 Ammonium dihydrogenorthophosphate (monoammonium phosphate), mixtures thereof 

with diammonium hydrogenorthophosphate (diammonium phosphate) (

a 

4801.00 Newsprint, in rolls or sheets (

c

) 

8471.50 Digital processing units other than those of 8471.41 and 8471.49 54 1

5201.00 Cotton, not carded or combed 52 

3815.19 Supported catalysts, n.e.s.o.i. 53 

4707.10 Waste and scrap of unbleached kraft paper or paperboard or of corrugated paper or 

paperboard 41 

8523.40 Optical media (

e

) 1

8431.39 Parts for lifting, handling, loading, or unloading machinery, n.e.s.o.i. 18 8409.99 Parts for use with compression-ignition internal combustion piston engines 36 7204.21 Waste and scrap, of stainless steel 44 1

8517.70 Parts of telecommunications apparatus (

f

) 

 Total of items shown 2,723 8,6

All other 6,302 7,6

 Total of all commodities 9,025 16,3

Source: Compiled from official statistics of the U.S. Department of Commerce. Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified o

a Exports aggregated with other fertilizer products under 3100.00.0000 to prevent disclosure of individual firm data. b Not applicable. c U.S value is less than $500,000.d Trade in 2006 reported under parts of items contained in Schedule B subheadings 8517.30 and 8517.50. e Trade in 2006 reported under parts of items contained in Schedule B headings 8523 and 8524. f Trade in 2006 reported under parts of items contained in Schedule B subheadings 8473.30, 8517.90, and 8529.10.
A-73

TABLE A.47 Leading imports from India, by HTS subheading, 2006-08 HTS subheading Description 2006 

M

7102.39 Nonindustrial diamonds, n.e.s.o.i. 3,256 7113.19 Articles of jewelry and parts thereof, of precious metal (excluding silver) 2,309 3004.90 Certain medicaments put up in measure doses or in forms or packings for retail sale, n.e.s.o.i. 241 

6302.60 Toilet and kitchen linen, of terry toweling or similar terry fabrics, of cotton 315 7305.11 Line pipe for oil or gas pipelines, external diameter over 406.4 millimeters, of iron or steel, 

longitudinally submerged arc welded 9 

6302.31 Bed linen, other than printed, of cotton, not knitted or crocheted 264 

6110.20 

Sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted or crocheted, of 

cotton 299 

2710.19 Oils and preparations from petroleum oils and oils from bituminous minerals, minimum 70 percent 

by weight of such products, not light 188 

7305.19 Line pipe used in oil or gas pipelines, external diameter over 406.4 millimeters, of iron or steel, 

riveted or similarly closed, n.e.s.o.i. 4 

6206.30 Women’s or girls’ blouses, shirts and shirt-blouses, of cotton, not knitted or crocheted 373 

6204.62 Women’s or girls’ trousers, etc., of cotton, not knitted or crocheted 181 

8528.71 Reception apparatus for television, not designed to incorporate a screen or video display device (a) 

7210.49 Flat-rolled iron or nonalloy steel, not corrugated, 600 mm or more wide, plated or coated with zinc 

other than electrolytically 510 

6105.10 Men’s or boys’ shirts, of cotton, knitted or crocheted 294 

0801.32 Cashew nuts, fresh or dried, shelled 215 

3004.20 Lead oxides, n.e.s.o.i. 111 

7207.12 Semifinished iron/nonalloy steel products, under 0.25 percent carbon, rectangular/not square, 

width not less than twice thickness 2 

6203.42 Men’s or boys’ trousers, bib and brace overalls, breeches and shorts not knitted or crocheted, of 

cotton 183 

6205.20 Men’s or boys’ shirts of cotton, not knitted or crocheted 229 

6109.10 T-shirts, singlets, tank tops, and similar garments, of cotton, knitted or crocheted 161 

8701.90 Tractors, n.e.s.o.i. 126 

8504.40 Static converters 174 

8502.31 Electric generating sets, wind-powered 217 7113.11 Jewelry and parts thereof, of silver, whether or not plated or clad with other precious metal 93 

5701.10 

Carpets and other textile floor coverings, knotted, whether or not made up, of wool or fine animal 

hair 194 

 Total of items shown 9,948 

All other 11,725 

 Total of all commodities 21,674 

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

Note: Because of rounding, figures may not add to totals shown. The abbreviation “n.e.s.o.i.” stands for “not elsewhere specified o

a Trade in 2006 reported under parts of items contained in HTS subheadings 8528.12 and 8525.13.