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ITC Launches Investigation of Duty-Free, Quota-Free Treatment for LDCs
The ITC has launched an investigation to assess the probable economic effect of allowing products from the world's least-developed countries to enter the U.S. free of all duties and quotas. the ITC will provide advice as to the probable economic effect of such treatment on industries in the U.S. producing like or directly competitive products and on consumers. According to the ITC, the investigation will cover each article in chapters 1 through 97 of the HTSUS for which tariffs or quotas will remain after the U.S. fully implements its Uruguay Round tariff commitments, taking into account preferential tariff treatment currently being provided to LDCs under the Generalized System of Preferences, the African Growth and Opportunity Act and the Caribbean Basin Initiative. The ITC's advice will be based on the 2002 HTSUS nomenclature and on 2006 trade and tariff rate data. The ITC will not hold a public hearing in connection with this investigation; however, it will accept written submissions until April 3. The ITC expects to submit its report, which will be confidential, to the USTR by Aug. 16.

DOT Says 2006 Freight Shipments with Canada and Mexico Up 8.9 Percent
Trade using surface transportation between the U.S. and Canada and the U.S. and Mexico was 8.9 percent higher in 2006 than in 2005, according to the Department of Transportation’s Bureau of Transportation Statistics. Surface transportation consists largely of freight movements by truck, rail and pipeline. About 90 percent of U.S. merchandise trade by value with Canada and Mexico moves on land.

The BTS reports that total North American surface transportation trade value reached $760 billion in 2006, up 28.9 percent compared to 2001 and 85.2 percent compared to 1996. U.S.–Canada surface transportation trade totaled $488 billion in 2006, up 6.5 percent compared to 2005. The value of imports carried by truck was 4.3 percent higher, while the value of exports carried by truck was 8.7 percent higher. U.S.–Mexico surface transportation trade totaled $272 billion, a 13.5 percent increase. The value of imports carried by truck rose 12.6 percent, while the value of exports carried by truck increased 11.6 percent.

U.S., Korea Cite Progress in FTA Negotiations, Schedule Additional High-Level Talks - With less than three weeks to go before the March 31 deadline, U.S. and Korean negotiators wrapped up their eighth round of talks on a bilateral free trade agreement early this week. According to press reports, the two sides made significant progress during the round and have concluded, or are very close to concluding, negotiations in the areas of customs cooperation, government procurement, financial services, technical barriers to trade, competition policy, dispute settlement and electronic commerce.

Senate Freshmen Seek Meeting with Baucus to Discuss Trade Policy
Several members of the Senate freshman class, including Sherrod Brown, D-Ohio, Benjamin Cardin, D-Md., Robert Casey, D-Pa., Amy Klobuchar, D-Minn., Bernard Sanders, D-Vt., James Webb, D-Va., and Sheldon Whitehouse, D-R.I., have called for a meeting with Finance Committee Chairman Max Baucus, D-Mont., to discuss problems and opportunities in U.S. trade policy. The newly-elected senators are particularly focused on the importance of trade as a factor in last November’s elections.The senators emphasized the need to develop a new approach that will empower Congress to exercise its authority over trade agreements.

Turkey Resubmits Proposal for WTO Textile Work Program
In a March 9 communication to the WTO Council on Trade in Goods, Turkey again requested that the council create a work program to address textile and apparel industry issues. According to the communication, the scope of the work program would include reviewing global textile and apparel production, trade and market circumstances in the post-quota environment, examining options for developing countries to improve their competitiveness in this sector, considering adjustment-related issues and making recommendations on measures to assist developing countries that are experiencing challenges, and examining ways to develop collaborative efforts with the relevant international organizations, including the World Bank and the International Monetary Fund, in order to effectively direct resources under existing programs toward the diversification of economies that rely heavily on the textile and apparel sector.

Business Group Reports Urge Congress to Keep Trade Agenda on Track
Business Roundtable, which represents 160 CEOs of leading U.S. companies with $4.5 trillion in combined annual revenues and more than 10 million employees, is urging Congress to keep the U.S. trade agenda on track and last week released two new studies detailing the importance of international trade and investment to domestic job growth and U.S. competitiveness in the global economy.

House Members Introduce Bill to Create Trade Enforcement Division at USTR
Reps. Dave Camp, R-Mich., and Stephanie Tubbs Jones, D-Ohio, recently introduced legislation (H.R. 1278) that would create a Trade Enforcement Division and an Office of Trade Assistance for Small Businesses at the Office of the U.S. Trade Representative. The Trade Enforcement Division would be headed by a trade enforcement officer, who would have the rank of ambassador and be appointed by the president and confirmed by the Senate. The duties of the trade enforcement officer would include assisting the USTR in investigating and prosecuting disputes before the WTO, making recommendations on how to break down foreign government barriers to goods and services and reporting annually to Congress on impediments to domestic companies attempting to sell goods in new markets. The Office of Trade Assistance for Small Businesses, which would be within the new Trade Enforcement Division, would provide technical and legal advice to small businesses to enable them to prepare and file petitions alleging trade violations.

USTR Issues DR-CAFTA Government Procurement Waiver for Dominican Republic
The USTR has issued a determination, effective March 1, waiving discriminatory government purchasing requirements with respect to goods and services from the Dominican Republic that are covered by DR-CAFTA Chapter 9. Specifically, the USTR has determined that the Dominican Republic will provide appropriate reciprocal competitive government procurement opportunities to U.S. products and suppliers of such products. As a result, the USTR has determined to waive, with respect to eligible products of the Dominican Republic and suppliers of such products, the application of any law, procedure or practice regarding government procurement that would, if applied to such products and suppliers, result in treatment less favorable than that accorded to (a) U.S. products and suppliers of such products and (b) eligible products of another foreign country or instrumentality that is party to the WTO Agreement on Government Procurement and suppliers of such products.

Labor Groups Oppose TPA Renewal, Offer New Legislative Approach
The AFL-CIO and the Change to Win coalition recently called for a new direction in U.S. trade policy and presented a new legislative approach to trade deals to the Democrat-controlled Congress. The move comes as President Bush is preparing to try to convince Congress to renew trade promotion authority, which expires June 30. The labor groups assert that the current TPA system has failed, as evidenced by the record $764 billion U.S. trade deficit in 2006 and the weak worker rights and environmental provisions in all of the free trade agreements negotiated by the Bush administration. The AFL-CIO also recommends that that U.S. undertake a strategic review of its existing trade agreements before the initiation of any new trade negotiations. The content and performance of current agreements should be re-examined to determine how to address any problems, including through renegotiation if necessary.

Exporters Textile Advisory Committee to Meet April 12. The Exporters Textile Advisory Committee will hold an open meeting April 12 in Washington, D.C. The ETAC is a national advisory committee that advises DOC officials on export barriers and market expansion activities.

China Now Brazil’s Second-Largest Source of Imports
China has surpassed Argentina to become Brazil’s second-largest supplier of imported merchandise. China exported $8.28 billion worth of goods to Brazil in 2006, slightly more than Argentina’s $8.19 billion. Only the U.S. accounted for a bigger share during this period, with around $15 billion in exports.

CBP Warns of Penalties for Violations of Wood Packaging Material Regulations
U.S. Customs and Border Protection announced that effective March 9 it may issue claims for liquidated damages and/or penalties against importers, carriers or bonded custodians for importing wood packaging material in violation of the regulations specifying how such material must be treated before it can enter the U.S. According to CBP, liquidated damages result from a breach of obligation under bond. When violations occur, liquidated damages and/or penalties will be assessed based on the value of the merchandise, which is considered to be the value of the WPM plus the value of the commodity or commodities identified for importation on the entry documentation. The liquidated damages claim may be issued at three times the entered value of the merchandise but not greater than the bond amount. WPM covered by the regulations includes items such as pallets, crates, boxes and pieces of wood used to support or brace cargo. Also covered is WPM imported as cargo, such as a container or truckload of new or unused pallets.

USDA Says Cotton Research and Promotion Act Referendum Unnecessary
The Department of Agriculture has determined that it is not necessary to conduct a referendum among importers and producers regarding the continuation of the 1990 amendments to the Cotton Research and Promotion Act. According to the USDA, the two major changes to the Cotton Research and Promotion Program made by the 1990 amendments were (i) the elimination of assessment refunds to producers and (ii) a new assessment levied on imported cotton and the cotton content of imported products. Although the USDA is of the view that a referendum is not needed, it will initiate a sign-up period to allow cotton importers and producers to request a referendum.