Korea FTA Talks Fail to Make Substantial Progress, Eighth Round Scheduled for March
According to press reports, the U.S. and Korea have agreed to hold an eighth round of free trade agreement talks in Korea in early March following this week’s negotiations, which did not result in as much progress as hoped. Prospects had appeared good after the two sides agreed that all 17 working groups would meet; work on pharmaceuticals, trade remedies and other issues had been put on hold for several rounds because of disagreements on how to handle a number of contentious issues. Although there was some indication that talks in these sectors are beginning to yield progress, there were no concrete breakthroughs announced. A report from the Korean Embassy in Washington, D.C., pointed to textiles and intellectual property rights as two areas where little advancement was made.

U.S. and COMESA Hold Trade and Investment Framework Agreement Meeting
U.S. trade and development officials held in-depth discussions this week with a delegation from the Common Market for Eastern and Southern Africa under the terms of the U.S.-COMESA Trade and Investment Framework Agreement signed in 2001. U.S. Trade Representative Susan Schwab opened the meeting, which included discussions on two-way trade, implementation of the African Growth and Opportunity Act, the Doha Round negotiations, trade capacity building activities, infrastructure issues and investment.

Levin Wants ILO Labor Standards Written into Text of Latin American FTAs
During a House Ways and Means Committee hearing this week on the Bush administration’s trade agenda, Trade Subcommittee Chairman Sander Levin, D-Mich., told U.S. Trade Representative Susan Schwab that Democrats continue to believe that free trade agreements with Peru, Colombia and Panama need to incorporate tougher labor provisions.

Business Coalition Launches Drive for Renewal of Trade Promotion Authority
Trade for America, a coalition of companies and trade associations representing a wide range of sectors of the U.S. economy, launched a drive to persuade Congress to renew the president’s trade promotion authority. Under TPA, legislation to implement free trade agreements receives expedited consideration by Congress and cannot be amended by lawmakers, who can only approve or reject it. A coalition press release said renewing TPA before it expires June 30 is critical to ensuring the continued competitiveness of U.S. businesses, workers, farmers and ranchers in the global economy.

Census Reports December Increase in Trade Deficit
The Census Bureau announced this week that the monthly U.S. trade deficit in goods and services increased to $61.2 billion in December, up $3.1 billion from November. December exports were $0.7 billion more than November exports of $124.8 billion, while imports were $3.8 billion more than November imports of $182.9 billion.

U.S. and Malaysia Unlikely to Conclude FTA Talks by End of March
Following their latest round of talks during the week of Feb. 5, it now appears unlikely that the U.S. and Malaysia can complete negotiations on a bilateral free trade agreement by the end of March. Press reports indicate that the two sides failed to reach a consensus on how to handle some of the most sensitive issues in the talks. One particular area that continues to be a problem is Malaysia’s insistence on maintaining certain government procurement policies that favor Malaysian-owned businesses. The U.S. and Malaysia would need to conclude negotiations by the end of March for the FTA to be considered under trade promotion authority, which expires at the end of June.

ITC to Investigate Effect of Pocketing Rule Change under DR-CAFTA
The International Trade Commission has announced that, following a Jan. 24 request by the USTR, it has instituted an investigation to advise the president on the probable economic effect of proposed modifications to the DR-CAFTA relating to the rule of origin for apparel containing pocket bag fabric. The investigation will also examine the effects of a number of other modifications to tariff treatment under this agreement. The ITC expects to submit its confidential report to the USTR by May 24 and will release a public version of the report as soon as possible thereafter. Comments from interested parties are due by March 2 and should focus on the specific articles for which the ITC has been requested to provide advice

China Commission to Hold Hearing on Chinese Government Control of Key Industries - The U.S.-China Economic and Security Review Commission will hold a hearing Feb. 23 in Washington, D.C., to examine the Chinese government’s control of key industries, the effect of such control on the U.S. and the world economy, and whether such control violates WTO principles. This event is the second in a series of public hearings the commission will hold during its 2007 report cycle to collect input on the impact of the economic and national security implications of the U.S. bilateral trade and economic relationship with China.

Hayes Seeks to Extend Berry Amendment Procurement Restrictions to DHS
Rep. Robin Hayes, R-N.C., introduced Feb. 8 legislation that would extend the Berry Amendment to the Department of Homeland Security. The bill would prohibit the DHS from procuring certain items directly related to national security unless those items are grown, reprocessed, reused or produced in the United States. This requirement would apply to articles or items of: clothing and the materials and components thereof, other than sensors, electronics or other items added to, and not normally associated with, clothing (and the materials and components thereof); tents, tarpaulins or covers; cotton and other natural fiber products, woven silk or woven silk blends, spun silk yarn for cartridge cloth, synthetic fabric or coated synthetic fabric (including all textile fibers and yarns that are for use in such fabrics), canvas products or wool (whether in the form of fiber or yarn or contained in fabrics, materials, or manufactured articles); or individual equipment manufactured from or containing such fibers, yarns, fabrics or materials.

Retail Group Urges Senate to Drop 100 Percent Cargo Screening
The National Retail Federation recently wrote to Senate Homeland Security Committee Chairman Joe Lieberman, I-Conn., and Ranking Member Susan Collins, R-Maine, urging the committee to oppose 100 percent overseas scanning of U.S.-bound cargo. That requirement is part of legislation passed by the House of Representatives in January (H.R. 1) that aims to implement various recommendations of the 9/11 Commission. Instead, the NRF stated, lawmakers should support the scanning pilot program approved by Congress last year in the SAFE Ports Act. The committee is expected to begin work soon on a Senate version of the House bill.

Investigation of Textile and Apparel Benefits under HOPE Bill Instituted
The International Trade Commission instituted Feb. 6 an investigation of the effects of new trade benefits accorded to textile and apparel imports from Haiti under the Haitian Hemispheric Opportunity through Partnership Encouragement Act. HOPE was enacted as part of the Tax Relief and Health Care Act of 2006, which was signed into law in December 2006. The HOPE legislation grants duty-free treatment to imports of qualifying textile and apparel products from Haiti if the president determines that Haiti meets certain statutory requirements. The new law also requires the ITC to report to Congress on the effects of the benefits on the trade markets and industries involving textile and apparel in Haiti, the U.S., beneficiary countries under the Caribbean Basin Trade Partnership Act and countries with which the U.S. has free trade agreements.

The schedule for this investigation is as follows.

• a public hearing will be held in Washington, D.C., Nov. 8
• requests to appear at this hearing are due by Oct. 23
• written submissions are due by Feb. 7, 2008
• the ITC intends to submit its report to Congress by June 20, 2008

Japan and India Begin Talks on Comprehensive Economic Agreement
Japan and India wrapped up Feb. 2 their first round of negotiations on a comprehensive economic partnership agreement and agreed to establish working groups on trade in goods, trade in services, investment and bilateral cooperation. The countries plan to hold a second round of talks in Tokyo in April. In April 2005, then-Prime Minister of Japan Junichiro Koizumi traveled to India and the two sides established the India-Japan Joint Study Group. The JSG recommended in its first report the launch of negotiations to develop a CEPA. According to India’s Ministry of Commerce and Industry, India’s exports to Japan in 2005-2006 were valued at $2.4 billion while imports stood at $3.5 billion. Major Indian exports include gems and jewelry, iron ore and marine products. Major imports from Japan include machinery, electronic goods, iron and steel.