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Special Issue: Global Trade News SPI Supports Portman as USTR . . . SPI this week vowed to support the Senate confirmation of U.S. Rep. Rob Portman (R-OH), President Bush's nominee to be the next United States Trade Representative (USTR). "SPI fully supports Congressman Portman's nomination and hopes the Senate promptly confirms him for the post," said SPI President William R. Carteaux. "Portman's home state of Ohio is one of the largest plastics manufacturing regions in the country. With his background in international trade, he is well-suited to lead the development and enforcement of U.S. trade policies that make sense for the nation's manufacturers." Portman's nomination comes at a critical time for U.S. plastics, with the industry facing record deficits in plastics product trade, particularly with China. "Some in the industry are increasingly concerned about potentially unfair trading practices by U.S. trading partners abroad," said Carteaux. "Given these concerns, it's clear that SPI must work with USTR to proactively address the high tariffs and other impediments to plastics exports overseas." If confirmed by the Senate, President Bush has charged Portman with an aggressive agenda that includes passage of the Central American-Dominican Republic Free Trade Agreement (CAFTA), completion of the Doha Round of negotiations within the World Trade Organization (WTO), and continuing to pursue bilateral free trade agreements to open markets for U.S. exports around the world. Portman, who has served for twelve years in the U.S. House of Representatives, is a well-respected member of the Ways and Means Committee and its subcommittee on Trade. He currently serves as Vice Chairman of the Budget Committee and the Chairman of the House Republican Leadership. Read more about him at http://portman.house.gov/Biography/. Turn The "China Challenge" into an Opportunity . . . SPI's Global Business Council (GBC) and the U.S. Department of Commerce (DOC) are sponsoring a U.S. plastics trade mission to Shanghai and Guangzhou, China, to be held June 15 - June 23, 2005. Attendees will obtain first-hand knowledge of the potential opportunities and competitive forces driving the rapidly-expanding Chinese plastics market. This year, mission participants will receive an overview of the legal and regulatory environment -- particularly with respect to exporting -- and will tour the Shanghai Waigaoquiao Free Zone Center, a business center designed to facilitate exports into the Chinese market. Additionally, the SPI/DOC trade mission will include plant tours, customized market and industry briefings, "matchmaking" meetings with pre-screened potential customers and entry into ChinaPlas 2005. The mission is designed to assist companies with their global business strategies, from understanding the Chinese competitive factor to exploring potential export opportunities or setting up operations in China. Registration fees for SPI members are $5,500 for individuals and $8,500 for company registrations. The fee includes all domestic transportation within China and mission-related meals, plus entry into ChinaPlas 2005 in Guangzhou. Also included are all U.S. Commerce Department and Embassy personnel costs associated with pre-screening prospective business partners, arranging the "matchmaking" sessions and providing translators, as well as promoting the mission to prospective partners and business interests and in-depth market briefings. The deadline to register is April 22, 2005. For more information or to register, link to http://www.plasticsindustry.org/business/international/05trademission.htm or contact Karen Bland Toliver, (202) 974-5333; e-mail ktoliver@socplas.org. For a listing of Frequently Asked Trade Mission Questions, link to http://www.plasticsindustry.org/business/international/05trademissionfaqs.htm. Get to Know the GBC . . . The Global Business Council (GBC) is SPI's international trade program committee. Its mission is to increase global awareness and competitiveness by providing resources to SPI members, while fostering growth of the plastics industry worldwide. GBC accomplishes this mission by providing economic information, data and statistics; monitoring international practices and standards; offering networking opportunities to its members; promoting international public policy issues and advocacy; providing assistance with market entry and market opportunities and collaborating with other international associations and trade groups. All SPI members in "good standing" are considered members of the GBC and are encouraged to participate in the group's Steering Committee, the governing body that coordinates all GBC-related activities. For more information or to get involved, contact Karen Bland Toliver, ktoliver@socplas.org.
In Related News . . . As part of its annual report to Congress on international economic and exchange rate policies, the U.S. Treasury Department is required to identify by April 30 all foreign countries that manipulate their exchange rates. Once Treasury identifies a foreign country as engaging in currency manipulation, U.S. law requires it to initiate formal negotiations with those countries on an expedited basis to eliminate the exchange rate distortion. SPI is a member of NAM's Sound Dollar Coalition, which has been working to persuade Treasury to identify China and other Asian trading partners in its upcoming April report. The coalition is comprised of 98 trade associations representing the nation's largest manufacturing and agricultural trade groups. Learn more about the coalition and its activities online at http://www.sounddollar.org/.
Study to Examine Impact of China on U.S. Economy . . . The U.S.-China Economic Review and Security Commission this month issued a request for proposal for the development of an econometric model to examine the impact of China on the U.S. economy. The Commission, established by Congress in 2000 to monitor and report on trade and economic concerns between the United States and China, intends to embark on a multi-year project to enable it to analyze on a macroeconomic level China's impact. For more information about the Commission and its work, link to www.uscc.gov.
For more information about SPI Link, mailing list additions/deletions, or to receive the publication by e-mail, contact Paula Weis, (202) 974-5282; e-mail pweis@socplas.org. More About SPI: Vision and Mission . Membership . Business Units . Regional Offices . News and Publications . Calendar of Events . Terms and Conditions of Use |
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Treasury Issues Report on Currency Manipulation . . . The U.S. Treasury Department this month issued a "Report to the Committees on Appropriations on Clarification of Statutory Provisions Addressing Currency Manipulation." The report, required by the Consolidated Appropriations Act, 2005 (Public Law 108-447), contains Treasury's assessment of how existing U.S. statutes may be better clarified to address the problem of currency manipulation by U.S. trading partners. In it, Treasury concludes that determining whether a trading partner is manipulating its currency to obtain an unfair competitive advantage is "inherently difficult," but does not identify any foreign countries that engage in currency manipulation. Treasury does, however, set forth the methodology upon which it relies to make such assessments. Download a summary of the report online at 
China's Currency Practices . . . After the March 14 close of the third session of the 10th National People's Congress in Beijing, China's Premier Wen Jiabao told the media "China is working on a plan for a more flexible exchange rate of its currency, but the specific measures might come around unexpected." Premier Wen also noted that an increase in the value of the yuan against the dollar posed some risk to the global economy. In response, NAM Vice President Frank Vargo told the Wall Street Journal, "When they will do it, we don't know, but we have seen increasing signs in recent months that something may be getting closer to happening." As noted above, SPI is working closely with NAM and other industry groups through its Sound Dollar Coalition to monitor developments on China's currency practices and to encourage U.S. policymakers to obtain meaningful reforms in the near term. Read the full text of Premier Wen's comments online at 
Congress Pondering Bills Aimed at Strengthening U.S. Trade Laws Against Foreign Subsidies . . . Simultaneous bills were introduced in both the House (H.R. 1216) and the Senate (S. 593) earlier this month that seek to apply the U.S. countervailing duty law to non-market economies, such as China and Vietnam. Under the countervailing duty statute, the Department of Commerce (DOC) investigates whether foreign countries provide certain subsidies to their manufacturers and calculates the level of subsidization attributable to imports into the U.S. market. Based on practices established more twenty years ago, the DOC currently does not apply this law to subsidies provided by governments designated as non-market economies under U.S. trade laws. Co-sponsors of the companion bills, Reps. Phil English (R-PA) and Artur David (D-AL) and Senators Susan Collins (R-ME) and Evan Bayh (D-IN), explained that the bills will ensure that U.S. trade law covers all subsidies prohibited under WTO rules, not just those provided by market economy countries. If the legislation passes, imports from China, Vietnam and other designated non-market economy countries will be subject to investigation of whether subsidized imports harm U.S. manufacturers. Hearings on the House bill are expected in April. SPI will monitor this and other activity on the Hill. Watch future issues of SPI Link for updates as they occur. For more information or to learn how these laws may impact your company, contact Karen Bland Toliver, (202) 974-5333; e-mail 
Regulatory Reform Review . . . The Office of Management and Budget (OMB) recently released a report, "Regulatory Reform of the U.S. Manufacturing Sector." The report summarizes the response to 189 recommendations from private interests on specific regulations that warrant reform to reduce regulatory costs for U.S. manufacturers. OMB noted that most recommendations were targeted at programs administered by the Environmental Protection Agency and the Department of Labor. Although the OMB emphasized that the federal agencies do not necessarily agree with the proposed reforms, it noted that 76 of the 189 proposals "have potential merit and justify further action." The full report is available online at 
Finally, Closure in Antidumping Case . . . The Department of Commerce (DOC) recently announced its final determinations in the antidumping and countervailing duty investigations of bottle-grade polyethylene terephthalate (BG PET) resin from India, Indonesia, Taiwan and Thailand. DOC found that imports from India, Indonesia, and Thailand were sold at unfair price levels, but that imports from Taiwan were not sold at unfair price levels. The countervailing duty investigation, which covered only India and Thailand, examined whether producers/exporters in these countries received actionable subsidies from their respective governments. DOC found that Indian producers/exporters received such subsidies, but producers/exporters in Thailand did not. It terminated the countervailing duty investigation of Thailand. The antidumping duty investigation examined whether BG PET resin imports from the four identified countries were sold at unfairly low prices. Now that DOC has completed its antidumping and countervailing duty investigations, the U.S. International Trade Commission (ITC) will examine whether the imports have caused material injury or threaten to cause material injury to U.S. producers of BG PET resin. If the ITC finds that U.S. producers have been negatively impacted by the imports, the DOC will instruct the Customs and Border Protection agency to collect additional duties on BG PET resin imports from these countries upon entry into the United States. To learn more, link to DOC's "Fact Sheet" at