For SPI Members Only – March 20, 2006 In This Edition Hill Activity | China Update | Trade Enforcement | Trade Agreements and Negotiations | WTO Update | Member Services | Export Promotion | Global Business Council
SPI Participates in Capitol Hill Meetings on IPR Issues. . . On March 10, 2006, SPI staff participated in meetings with Congressional offices to discuss the need for stronger enforcement of intellectual property rights (IPR) in the U.S. and abroad. The meetings took place under the auspices of the private-sector Coalition Against Counterfeiting and Piracy (CACP), of which SPI is a member. SPI representatives met with staff from the offices of Sen. Lindsey Graham (R-SC), Rep. John Conyers (D-MI), and Rep. Debbie Wasserman Schultz (D-FL). During the meetings, SPI staff emphasized the detrimental impact of IPR violations on U.S. plastics manufacturers. For more information about these meetings or SPI’s activities in the intellectual property area, please contact Gennie Ross. USTR Issues National Trade Agenda for 2006. . . On March 1, 2006, the Office of the U.S. Trade Representative (USTR) submitted to Congress the 2006 Trade Policy Agenda and 2005 Annual Report of the President of the United States on the Trade Agreements Program. In the report, U.S. Trade Representative Robert Portman laid out an ambitious trade agenda for 2006. One of the main areas of focus will be the conclusion of the World Trade Organization (WTO) Doha talks with increased market access for U.S. companies in the industrial, agricultural, and services negotiations. Additionally, the report emphasized the importance of successfully concluding bilateral and regional agreements in 2006. USTR also pledged in the report to aggressively seek to enforce trade agreements and combat illegal trade practices by U.S. trading partners. Addressing Congressional and private concerns regarding China, USTR vowed in the report to work vigorously on efforts to ensure China’s compliance with its obligations under the World Trade Organization (WTO). More information about the report. . . House Approves Miscellaneous Tariff Bill. . . On March 15, 2006, the House of Representatives approved a new Miscellaneous Tariff Bill (MTB). Last spring, the House Ways and Means Committee opened procedures for representatives to submit bills seeking to temporarily suspend import duties on certain products imported by U.S. companies. Many businesses avail themselves of the MTB process because the temporary lifting of duties on their imports can generate substantial cost savings. The House action will likely prompt Senate Finance Committee Chairman Charles Grassley (R-IA) to draft a Senate version of the tariff bill. View the MTB. . . Senate Holds Hearing on Oman FTA. . . On March 6, 2006, the Senate Finance Committee held a hearing on the U.S.–Oman Free Trade Agreement (FTA). At the hearing, Deputy USTR Susan Schwab outlined the agreement and its likely benefits for U.S. companies and farmers. The U.S.–Oman FTA was completed in October 2005 after only two negotiating sessions. Two-way goods trade between the U.S. and Oman was $748 million in 2004. U.S. plastics imports from Oman totaled $482 thousand in 2005, while U.S. plastics exports amounted to $5.8 million. U.S. exports to Oman increased in 2005 in all sectors of the plastics industry with the exception of resins, which declined from $8.6 million in 2004 to $1.7 million in 2005. The House Ways and Means Committee is expected to hold a hearing on the U.S.–Oman FTA soon. Congressional ratification of the agreement could occur as soon as this month. View the testimonies presented at the recent Senate Finance Committee hearing. . .
Commerce Secretary Gutierrez Suggests Possible Postponement of JCCT. . . Senior U.S. and Chinese officials are scheduled to convene on April 11, 2006 for the annual meeting of the U.S.–China Joint Commission on Commerce and Trade (JCCT). However, following a March 14, 2006 speech, Commerce Secretary Carlos Gutierrez raised the possibility of postponing the meeting. According to Inside U.S. Trade, Secretary Gutierrez noted that the Bush Administration may consider a delay if China is not prepared to seriously address U.S. concerns about the implementation of its WTO commitments. The Bush Administration is particularly concerned with China’s ineffective enforcement of intellectual property rights, its failure to provide adequate information about its IPR enforcement efforts to the U.S., and the continued undervaluation of the Chinese currency. Secretary Gutierrez will visit China next week in preparation for the JCCT meeting and reportedly intends to discuss the possibility of postponing the meeting with his Chinese counterparts. Many in the Bush Administration are concerned that an ineffective JCCT meeting without real progress on China’s WTO compliance would strengthen calls in Congress for sweeping legislative actions to address the U.S. trade imbalance with China. Bill Banning Auto Imports from China Introduced in the House. . . On February 28, 2006, Rep. Walter Jones (R-NC) introduced a bill that would prohibit imports of passenger cars from China until U.S. and Chinese tariffs on these products are equal. The bill (H.R. 4808) has several co-sponsors, including Reps. Dale Kildee (D-MI), John Dingell (D-MI), Carolyn Kilpatrick (D-MI), Thaddeus McCotter (R-MI), Tim Ryan (D-OH), Bernie Sanders (I-VT), and Thomas Tancredo (R-CO). Inside U.S. Trade reports that the bill is generating support in the House and may be joined by a Senate companion bill in the coming weeks. The legislation is reportedly aimed at addressing projections that China will begin exporting cars to the U.S. as early as 2007. U.S. tariffs on passenger cars stand at 2.5 percent, while China imposes tariffs on U.S. car exports of 28 percent. It is unclear at this time whether the U.S. automotive industry will support this legislation. The “big three” U.S. automakers (Ford, DaimlerChrysler, and General Motors) have generally refrained from pressuring the U.S. government on trade issues with China. They have invested in manufacturing facilities in China and may not be interested in a reduction in the country’s auto tariffs. Moreover, H.R. 4808 will likely violate U.S. commitments under the WTO and may thus receive limited support from the U.S. business community and the Bush Administration. Nevertheless, its sponsors maintain that their intention is to draw attention to the issue and to pressure both U.S. negotiators and China to address this tariff differential. View the text of H.R. 4808. . .
U.S. Engagement with Russia on IPR Issues Continues. . . Senior U.S. officials visited Russia last week for detailed talks on Russia’s intellectual property rights (IPR) protection regime and other issues related to Russia’s future membership in the WTO. Following the trip, Chris Israel, U.S. IPR Enforcement Coordinator, stressed that a wide range of IPR concerns related to Russia remain unresolved. Moreover, he noted an emerging U.S. concern regarding proposed reforms of the Russian civil code, which may further complicate the country’s IPR regime and introduce contradictory statutes in the IPR area. U.S. copyright industries are pressing the Bush Administration to avoid completing negotiations with Russia until Moscow undertakes tangible efforts to strengthen IPR protection and enforcement. U.S. concerns with Russia include not only the piracy of optical discs and software, but also Russia’s role as a supplier of a wide range of counterfeit goods to Eastern Europe. To discuss your company’s IPR concerns with SPI, or for more information on this topic, please contact Gennie Ross. SPI Needs Your Input on IPR Issues. . . SPI is working with industry groups and USTR through the private-sector Coalition Against Counterfeiting and Piracy (CACP) to convey the plastics industry’s specific IPR concerns. To be most effective, however, SPI needs member input on specific problems and violations experienced by your company. We would also like you to share with us specific information about IPR violations and, if possible, samples or pictures of counterfeit products or marketing materials that you have encountered. All information reported to SPI will be kept confidential. To share your IPR-related problems with SPI, or for more information about SPI’s activities in this area, please contact Karen Toliver or Gennie Ross.
SPI Wants to Hear Your Concerns About Access to the Korean Market. . . Now that the U.S. has launched trade talks with South Korea, USTR needs input from U.S. industries and businesses to help establish priorities for the free trade negotiations. In addition to elimination/reduction of tariffs on U.S. goods, USTR will seek removal of other barriers that hinder access to the Korean market. If your company has experienced any difficulties either operating in or exporting to Korea, SPI would like to hear from you. Please submit your concerns to SPI. Any information you submit will be kept confidential and will be included in a comprehensive report submitted to USTR on the plastics industry’s priorities in the U.S.–Korea free trade negotiations. U.S. Launches FTA Negotiations with Malaysia. . . On March 8, 2006, U.S. Trade Representative Rob Portman announced the Bush Administration’s intent to negotiate an FTA with Malaysia, with the goal of removing tariffs and non-tariff barriers and expanding trade flows between the two countries. The U.S. is Malaysia’s largest trading partner and the largest foreign investor in Malaysia. U.S. exports to Malaysia totaled $10.5 billion in 2005, with top export categories, including machinery, optic and medical instruments, aircraft and plastics. The largest categories of imports from Malaysia are machinery, furniture and bedding, rubber, and optic and medical instruments. The U.S. plastics industry exported goods worth $238.5 million to Malaysia in 2005, while imports amounted to $156.3 million. According to USTR, Malaysia is also a valuable partner in the ongoing Doha Round negotiations under the auspices of the WTO. Additional information on Malaysia and the prospective benefits of this FTA is available on the USTR website. SPI would like your input with regard to trade barriers that you have encountered in exporting to Malaysia and any specific issues with regard to these negotiations. Please contact SPI’s Karen Toliver or Gennie Ross to share your comments and/or concerns. President Bush Announces New “U.S.–India Strategic Partnership”. . . While visiting India, President Bush and Indian Prime Minister Manmohan Singh announced on March 2, 2006 a new “U.S.–India Strategic Partnership,” the goal of which is to significantly boost bilateral trade and investment ties. A key element of the Strategic Partnership is expanded cooperation on civilian nuclear energy. The Partnership also seeks to build on the U.S.–India Trade Policy Forum launched in July 2005 to establish a regular high-level dialogue on trade issues between the two countries. The two countries are also planning to convene a public-private investment summit in 2006. India holds great potential for exports and investment by U.S. plastics manufacturers. SPI has established contacts with plastics industry organizations in India and is considering leading a trade mission to India in 2007. For more information on U.S.–India plastics trade, please contact SPI’s Karen Toliver or Gennie Ross. View the U.S.–India Joint Statement on Trade. . .
SPI Participates in Global Manufacturers Fly-In to Geneva. . . On March 13–17, SPI’s Vice President of International Trade and Trade Counsel Karen Toliver participated in a Global Manufacturers Fly-In to the WTO in Geneva, Switzerland. Led by the National Association of Manufacturers (NAM), the fly-in includes representatives of business interests from seven countries convening in Geneva to send a unified message that manufacturing priorities must be addressed in the Doha Round of trade negotiations. SPI participated in a similar effort in October 2005. More than 50 individuals from manufacturing organizations around the world, including Europe, Korea, Japan, New Zealand and Taiwan, are participating in the latest fly-in. The delegation is meeting with key WTO officials and ambassadors from several leading developing countries, including Brazil, China, Mexico and Pakistan. SPI is pursuing greater market access on a global basis for plastics industry goods. For further information about the Global Manufacturers Fly-In or SPI’s activities regarding the Doha Round of multilateral trade negotiations, please contact Karen Toliver. U.S. Completes WTO Accession Negotiations with Ukraine. . . On March 6, 2006, Ambassador Portman and Ukrainian Minister of Economy Arseniy Yatsenyuk signed a bilateral agreement on market access issues as part of Ukraine’s WTO accession negotiations. According to USTR, the agreement will create significant opportunities for U.S. exporters to Ukraine and is a major step towards Ukraine’s completion of its WTO accession negotiations. To complete its accession bid, Ukraine still must complete bilateral negotiations with eight other countries. Ukraine remains in the process of enacting legislation that will enable it to apply WTO provisions after its accession. Recognizing the recent economic liberalization efforts and market reforms undertaken by the Ukrainian government, USTR recently removed the country from its Priority Watch List on IPR enforcement and the Department of Commerce designated Ukraine as a “market economy” for the purposes of antidumping and countervailing duty investigations. Additionally, the House of Representatives on March 8, 2006 authorized the extension of permanent normal trade relations (PNTR) to Ukraine. The Senate also needs to approve Ukraine’s PNTR status. This is a key step before the U.S.–Ukraine market access agreement may enter into effect following Ukraine’s formal accession to the WTO. More information about the U.S.–Ukraine bilateral market access agreement. . .
Temporary Suspension of U.S. Import Duties on Your Imports. . . Is your company compelled to import a product because no U.S. company produces it? Do you pay import duties on such imports? If so, then you may be eligible to obtain the temporary suspension of the import duties and experience a reduction in your input costs. The Senate may soon consider requests from U.S. businesses to temporarily suspend import duties on products of interest to their constituents. Such suspensions will be enacted through a Miscellaneous Tariff Bill (see related story above). To be eligible for the temporary duty suspension, there must be no U.S. production of the product and the potential loss of revenue to U.S. Treasury (from the lifting of import duties) cannot exceed $500,000 annually. If you are interested in determining whether you have imports that are potentially eligible for inclusion in the MTB, please immediately contact Gennie Ross.
Trade Leads Through the Department of Commerce. . . The Commerce Department’s Commercial Service offers a host of services to U.S. companies seeking to export their products. The Commercial Service collects export leads from its officers stationed in overseas markets and posts them on the Export.gov website. Recently-posted trade leads of interest to plastics producers include:
Commerce Department Export Promotion Webinars. . . The U.S. Commercial Service is offering a series of free web seminars for U.S. companies looking to enter or increase their presence in key foreign markets. On March 20, 2006, you can learn about “Opportunities in China” from a Senior Commercial Officer at the U.S. Embassy in Beijing. More information on this program. . . More information on doing business in China. . .
GBC Program on Central and Eastern Europe. . . Always at the forefront of global issues impacting the plastics industry, the GBC is organizing a program to be held during NPE 2006. Attendees will hear about developments and business opportunities for plastics manufacturing in Central and Eastern Europe. The event will take place on Tuesday, June 20, 2006 at 8:00–9:30 a.m. Speakers will include Helmar Franz, executive vice president, Ningbo Haitian Group Co. Ltd., Jim Peck, corporate vice president and general counsel, Nypro Inc., Charles Sholtis, CEO, Plastic Molding Technology Inc., and a representative of the U.S. Department of Commerce (invited). To register, visit the NPE 2006 website. Join the GBC! . . . Does your company experience difficulties in exporting overseas? Are you concerned about import competition in your market? Do you want to have input on planning trade missions to overseas markets and SPI’s positions on trade policy matters? Then consider joining SPI’s Global Business Council. The GBC’s mission is to increase global awareness and competitiveness by providing resources to SPI members, while fostering growth of the plastics industry worldwide. All SPI members in good standing are eligible to join. If you are interested in joining the GBC, please contact Gennie Ross. More information on the GBC and its activities is available on the SPI website.
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