USTR Weekly E-Newsletter

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Office of the U.S. Trade Representative Office of Intergovernmental Affairs and Public Engagement www.ustr.gov http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uSYbZ1SGGafh67mQrr46RxNQzLrRNvvOrMRR-7tCNeoVODeROjEoZ5ZY4F6YzK4z4EWWOWxjAYO9fRfEa2cTMJPxfvpoGHZF5c= | 202-395-6120 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

July 16, 2010

Volume 51 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

In This Issue http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uSJhFlmePbP0y9EEN1brNAlPkIJwzcLiZU6Ch5OGFUbsnH3KsAzcBzs39WN9-LOSd9aS9-lkqpHZ_6zSEC6IbpskAR4L9j7EeB6OXbv4PFXOjP9C0MI1vgb-1mXVTho1XncH50CQKckVa5gB-DXaw5vcGx2ZAhA7_ApxAbsQ73FZDfCx5I08ysQUmzUagNbFNRbb9IPW1yGP226SXweP27jIaBqxrpQGbInn5p2c7jrjTl5M0V__eOf - Second Report on Small- and Medium-Sized Enterprises Shows Trade Benefits, Identifies Key Export Barriers - United States, Turkey Hold Seventh Meeting of U.S.-Turkey Trade and Investment Council

- This Week's Headlines from www.USTR.gov http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uSYbZ1SGGafh67mQrr46RxNQzLrRNvvOrMRR-7tCNeoVODeROjEoZ5ZY4F6YzK4z4EWWOWxjAYO9fRfEa2cTMJPxfvpoGHZF5c= ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

_____________ RECENT EVENTS

- Ambassador Kirk toured the Porter family farm in Cabarrus County, North Carolina.

- Ambassador Kirk hosted an agricultural roundtable with State Agriculture Commissioner Troxler and local exporters in Mt. Pleasant, North Carolina to discuss the importance of agricultural trade. - Ambassador Kirk held a business roundtable with local businesses to discuss the NEI and increasing North Carolina exports. - Ambassador Kirk and Congressman Kissell hosted a roundtable at UNC Charlotte's Performance Manufacturing Center on increasing manufacturing exports.

- Deputy USTR Demetrios Marantis spoke at a Third Way event entitled "China: What's Next?"

- Deputy USTR Miriam Sapiro spoke at the Council on Foreign Relations (CFR) regarding the U.S. - Brazil trade relationship in New York. The event, entitled "Brazil's Role in the Global Economic System," was part of CFR's Global Brazil Initiative and sought to explore Brazil's rising global economic aspirations, trade agenda, and role in multilateral economic institutions.

- USTR General Counsel Tim Reif spoke at a National Association of Manufacturers event entitled "Enforcement, Negotiations & Trade Policy: A View from USTR's General Counsel."

- Assistant USTR for Textiles Gail Strickler attended TEXWORLD USA in New York to promote apparel and textile sourcing in Pakistan and to give remarks during the Texworld USA-Pakistan Open for Business VIP reception.

- Assistant USTR for Environment and Natural Resources Mark Linscott testified on July 14 before the Senate Finance Subcommittee on International Trade, Customs and Global Competitiveness, on trade negotiations and opportunities to address marine conservation. Linscott described U.S. efforts in getting a strong agreement to prohibit harmful fisheries subsidies in WTO Doha negotiations and U.S. interest in addressing marine conservations issues, such as illegal fishing, in Trans-Pacific Partnership negotiations.

- Deputy Assistant USTR for Market Access and Small Business Christina Sevilla and Director for Services Trade Negotiations Thomas Fine spoke to Suffolk University Sawyer Business School Executive MBA students from Boston, MA. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

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The USTR Archives can be found on the bottom margin of our website http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uR1hXlvIf2H8CLkCS6XwxONVhMDMBwyelaTBExg4HZ_Y1jFdKil3ng5NQi-M6sgi8FI9I_823lfxfKBKj0me3yp7-4nTAEhRT3mMhwPcBq3uvMzm1FJ5WFWp1NWJLsq09HD5UXRpRVPbk7oRWMQNMZI. ================================================================================

Please send us your real trade stories at Share Your Stories http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uSxjLCNv9jbncyvygMF--M8zBo0UXUsgRjt14Jm0H-VSNOGFZDW9BOJ0vutiXfnvckvrHo5ocvtaZW5guWAJAJyOXP-VljfVq18sX2ak8AmEEHqN8v0nn-DwjmNZdYs9G8uyqbS-KyXomt7lk35Vy43g4hig-dte4Q= or submit questions to Ambassador Kirk at Ask the Ambassador http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uSH0tXrXM6LfwXgtPnJ6CgbxZ6NbZEDAN55rEOTAlakkFV5NJpsETGoGlQyWSgIjT21Ff34h_SLLQxrBK-jogJL6AJ8pk95VP7FouCDMzCsvceNu8S0hT-Nx8tWoR1uMJHefvAkBmDHpbawwA3axqYp. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Second Report on Small- and Medium-Sized Enterprises Shows Trade Benefits, Identifies Key Export Barriers July 26,2010 Washington, D.C. - United States Trade Representative Ron Kirk said today that the new report from the U.S. International Trade Commission (ITC) identifies top export barriers reported by U.S. small- and medium-sized enterprises (SMEs), and highlights the benefits of U.S. trade agreements to American small businesses. The report found that U.S. SMEs account for a smaller share of U.S. manufactured goods exports than SMEs in the European Union (EU), reflecting the relatively larger economic role of SMEs in the EU. Kirk requested this study from the ITC in 2009 to help guide our trade policy activities to boost American SME exports. "America's small businesses are engines for our economic growth. Small- and medium-sized businesses that export grow faster, add jobs faster, and pay higher wages than non-exporting firms," said Ambassador Kirk. "This second ITC report provides us with a deeper understanding of the leading challenges that our U.S. SMEs face as they seek new global customers, and highlights the types of barriers that SMEs identified themselves as their biggest hurdles to exporting. This is the second of three reports that the USTR commissioned to inform and focus SME-related trade policy initiatives. It draws upon information gathered from three public hearings held in St. Louis, Portland, and Washington, DC, and testimony and comments from over 250 companies and organizations. The report compares the exporting activities of SME exporters in the U.S. and EU, describes the major barriers our SMEs face, SME strategies to overcome these barriers to trade, and identifies the benefits American SMEs reported from enhanced export opportunities stemming from U.S. participation in trade agreements. Ambassador Kirk noted, "USTR's continued mission is to create better trading opportunities for all American firms. We are ready to help our small- and medium-sized businesses take advantage of those opportunities and continue to provide jobs to Americans who need them. The third ITC report will examine U.S. SMEs engaged in providing services, and will identify how data gaps might be overcome to enhance our understanding of the role of SMEs in service sector exports. USTR expects to receive it by October 6, 2010. The full text of the second report can be found at http://www.usitc.gov/publications/332/pub4169.pdf http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uT14DvEDgBfzFjl0XCiw2XtbkJ809QkoYy-MgSQXCqnZ8EUEiXeL5HGiCcvI8PxQFkCJN9SbAa28gEUVeAkOXQ3Mya5Pgd3ws_u81asrGf7qCb6yEH9rTdaoT6afh8bceGDDRGGyWhONQ==. Key Findings: Comparison of U.S. and EU SME export activities

* U.S. SMEs account for 13 percent of the value of U.S. manufactured goods exports, while EU SMEs account for approximately 31 percent of the value of EU manufactured exports' * U.S. and EU SMEs are about as equally export-intensive in terms of exports as a share of their sales, with U.S. SMEs exporting 7.1 percent of sales and EU SMEs exporting 8.2 percent of sales. * The relatively larger role that EU SMEs play in EU exports can be explained, in part, by the fact that historically, the U.S. market has been more integrated than Europe's, and has produced comparatively larger firms. * Exports of U.S. SME manufactured goods are more likely to be routed through wholesalers than are EU SME exports. In the United States, exporting wholesalers are more likely to be large firms. * In terms of government assistance, the United States provides a wider range of pre-export and short-term credit support to SMEs than is available in the EU, whereas EU SMEs have relatively more support for participation in international trade fairs. U.S. SME Views on Trade Barriers and Strategies to Overcome Barriers to Exporting

* Domestic barriers: Leading domestic barriers to exports as reported by U.S. SMEs included limited access to trade financing and working capital; export controls; restrictions on obtaining foreign visas; high transportation costs; tariffs on intermediate inputs; and the small scale of SME production.

* Foreign barriers: Leading foreign barriers to exports as reported by U.S. SMEs included costly and nontransparent foreign government laws and regulations; unreliable protection of intellectual property; foreign tariffs and government support programs; exchange rate fluctuations; lack of knowledge of foreign markets; and language and cultural barriers.

* Strategies: U.S. SMEs have developed a number of strategies to overcome some barriers to exporting. These strategies principally involve: (1) pooling resources with other small firms through trade associations or less formal coalitions; (2) collaborating with a larger firm in the same industry or working with a broker or distribution agent; and (3) taking advantage of government programs designed to help exporters. U.S. SME Recommendations for Increasing Exports

SME's most frequent policy recommendations are to: * increase focus on free trade agreements (FTAs) and other trading arrangements; * devote additional resources to enforcing existing agreements; * provide greater assistance with market access, particularly in India and China; * offer more information, outreach, and educational opportunities about exporting; * streamline and reform export processes and export control regulations; and * expand and improve export loans, grants, and other financing programs. Benefits to U.S. SMEs from Increased Export Opportunities Through FTAs, U.S. membership in the World Trade Organization (WTO), mutual recognition agreements (MRAs), Trade and Investment Framework Agreements (TIFAs), bilateral investment treaties (BITs), and other trading arrangements, SMEs obtain improved market access, better trade facilitation, and a more favorable regulatory environment. The reported benefits to U.S. SME exporters of these agreements include:

* Reduced costs through tariff reduction, standards harmonization, mutual recognition of certification, easier information access; * Reduced time to deliver products or services to markets or customers through customs facilitation and cross-country certification and standardization; * Reduced risks through stronger IPR protection and enforcement, dispute settlement procedures, increased regulatory transparency and more predictable regulatory and legal regimes; and

* Enhanced access to more and diverse markets and foreign customers. # # # ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

United States, Turkey Hold Seventh Meeting of U.S.-Turkey Trade and Investment Council July 15, 2010

Washington, D.C. - Today Deputy United States Trade Representative Ambassador Miriam Sapiro opened the seventh meeting of the U.S.-Turkey Trade and Investment Council in Washington, D.C. The two-day meeting between Turkish and U.S. officials will discuss the importance of the U.S.-Turkey trade and investment relationship. It is also a key step in preparations for the first formal meeting, envisioned for later this year, of the U.S.-Turkey Strategic Economic and Commercial Cooperation dialogue, inaugurated in December 2009 by U.S. Trade Representative Ron Kirk and Secretary of Commerce Gary Locke with their Turkish co-chairs, Deputy Prime Minister Ali Babacan and Minister for Foreign Trade Zafer Caglayan.

Ambassador Sapiro said, "This TIFA was concluded more than a decade ago, but it remains as important as ever today. The United States greatly values its economic relationship with Turkey and we are working to fulfill President Obama's commitment to enhance our bilateral trade and investment ties. This week's meeting will significantly advance that objective."

Acting Assistant U.S. Trade Representative for Europe and the Middle East Mark Mowrey is co-chairing with Turkish Deputy Undersecretary for Foreign Trade Cemalettin Damlacithe deliberations of the Council, established under the U.S.-Turkey Trade and Investment Framework Agreement (TIFA), which was signed in 1999. At the meeting, senior government officials discussed a full range of trade-related issues, including intellectual property rights, climate initiatives, biotechnology, pharmaceuticals, government procurement, and customs.

The full U.S. delegation to the meeting includes officials from the U.S. Department of State, the U.S. Department of Agriculture, and the U.S. Department of Commerce.

Background:

Two-way trade (exports plus imports) between the United States and Turkey was valued at $10.8 billion during 2009, representing the U.S.'s 38th largest goods trading relationship. While U.S. trade with Turkey was sharply impacted by the economic downturn, two-way trade has risen by 37.8% to $5.6 billion for the first five months of 2010. During the same period, U.S. imports from Turkey were $1.6 billion, up 12.9% from the same period in 2009, and U.S. exports have increased by 51.5% to $4 billion. U.S. leading exports to Turkey include aircraft, iron, steel, machinery and fabric, in addition to a wide range of agricultural products. Turkey predominantly exports vehicles, machinery, cement, and tobacco to the U.S.

U.S. foreign direct investment (FDI) in Turkey amounted to $6.1 billion in 2008, mostly concentrated in the banking, wholesale trade, and manufacturing sectors, while Turkish FDI in the U.S. was $218 million in 2007.

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Remarks by Ambassador Demetrios Marantis Deputy United States Trade Representative July 15, 2010

Deputy United States Trade Representative Demetrios Marantis joined Representative Adam Smith (D-WA) and Third Way's Jon Cowan to discuss the current state and future of US-China trade and investment policy and to take a detailed look at the Obama Administration's strategy.

Read Ambassador Marantis's remarks here http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uTvsYgIr8mrF4RYYHcqXog9YZYPIdLki2E0C7X5JHWiqRCvrOPXGqdXRV9GLeQA-unYeK4rCNlbhXxYxpGsmamVzGswz7lPjj3TMwB2AGp_PpeGtxDPpOKsL1aHYOA91mODk0GiRPi90bjAkukRYNqvnrlYIs1AFrC9zbarSn28fpymKrlHPD8uWIQkVnllIJ5wEwfzzn_Tii8YYsEODZtSrGrE-3GzxnELDNifew2La-6Na3JmA1kU.

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This Week's Headlines www.USTR.gov http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uSYbZ1SGGafh67mQrr46RxNQzLrRNvvOrMRR-7tCNeoVODeROjEoZ5ZY4F6YzK4z4EWWOWxjAYO9fRfEa2cTMJPxfvpoGHZF5c= July 16: Ambassador Kirk and Rep. Kissell Tour UNCC's Technology Center, Hold Roundtable in Charlotte http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uRZYjekq3gaeZMbJ10RaX_N6AtUaqUl2DSxkmRVQeu5h7vdhOr5WJJv1Rv1JLXsZ3Q7VgCJSkOtX1SFUea2NsSb8_tPZmKqGU6i8jbIUvfF8Q2TkXv-mkdMbodaPJWde75KWpOSYcSpyUnMrKhvzugfHM3ogcS5OibAOtn40-lJDqlfvuUdTfPYW-njYojQcw1cCaF73O6urb6rllj2rOIEdY2-Z_QvpgFGtvR_1ahVqryKm9ZNWx-L

Ambassador Kirk toured the University of North Carolina-Charlotte's Technology Center today with the state's 8th district Congressman, U.S. Rep. Larry Kissell (D). After the tour, Ambassador Kirk and Congressman Kissell met with local business leaders to discuss trade-related topics from intellectual property rights to USTR's enforcement efforts regarding imports of Chinese tires.

July 16:

Ambassador Sapiro Discusses U.S.-Brazil Trade Releations with the Council on Foreign Relations in New York http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uR_Ez_DLhrvEj2xDbMIHpnqP1ZK1Z-tARBbTX3mSRgpGZigqja2vOT21Pf3vVbHg7Razt4dk5xb68a0kppvdRQv6p0TrYXW3w5_mXIGABeF-iQ_ScseBLrp_kcqWuIAiOXwTRW1sCAhntrQ333DLwTiBWQSLlVGZgYC7staygFk2AaHgauaLVgQkLHC4X0F8oj-Ox4hy-IQwbk5c6-g5D53D-aF_qomO9sk18XnU3VKp6IZGCO-4_oY Deputy United States Trade Representative Miriam Sapiro traveled to New York yesterday to discuss the U.S. - Brazil trade relationship with members of the Council on Foreign Relations (CFR) at their headquarters. The event, entitled "Brazil's Role in the Global Economic System," was part of CFR's Global Brazil Initiative and sought to explore Brazil's rising global economic aspirations, trade agenda, and role in multilateral economic institutions.

July 15:

Ambassador Kirk Visits Porter Family Farm in Cabarrus County, North Carolina http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uShwE7_IkwOAyPbR1UzpygOJ46_NvmVscrrFj3RDpSn7vDJrH5FbzSxvKoiDer_V0ho-iYNgjCKUJ6Y2D2u4IrZL6b6b3986QzePWQcKoJjjFDhB262iYEmviynRzTDXSqRTP-750RxiMDzXPgRQb7Nv184VSIUtmOL-3Ic9G_bBHMuMPOBeBFBHWXtWXhbT3_AjYjay4Rpd_W4KQiMRZrGAMeoPkiQIUQa4xn88eM2u9KKEd3gZV5I

United States Trade Representative Ron Kirk visited a broiler and sow operation and met with local agricultural leaders in Cabarrus County, North Carolina today. North Carolina is the country's 13th largest agricultural exporting state, shipping $3.1 billion in agricultural exports abroad in FY 2008 (according to the U.S. Dept. of Agriculture).

July 15: Ambassador Kirk Addresses NCAPEC and the APEC 2011 Host Committee http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uQF0WMFKsSmFUa1A8wm1sGxGeyf2Zi_Ss_WDD2BlBuFfajoINp0xdiJNeUzmCfWVf0g_jqRfRtoqZ5WDx6TPsmoVRDIHiAiZHPiCo5EcreOl0ztx4WR-8OgNPx5c1nR3ru6XWF7QFch0w3DSCfo4QmL-qRBJSVzOd-w2kI_Qsgi8hjZYvNs4Hqx6z6EN0Vc-DhPF9-zOTy7KEysCARJhx3-bB34LT6WYnvu_U8jfbC0ytDbvI31YOil

Ambassador Kirk spoke at a reception to welcome the launch of the Asia-Pacific Economic Cooperation's (APEC) USA Host Committee event on Wednesday, July 14 to prepare for the United States hosting APEC in 2011, including the APEC meeting of Ministers Related to Trade (MRT) in Big Sky, Montana in May 2011.

July 14:

Weekly Trade Spotlight: Trade in North Carolina http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uR22t7fuXY1JxnTQDefc_lsaVpMu5ZRLRRSCmd3wL9cf3TqWfvliz04XHR8VM2pm_ngljzGThcK1fJOBOdyl0HzRGk_ltMMiH0QgkUDcnxMJFZvubMCNWO9PaCtlVgqEnsUj2U7Od27YHTCwFjcS75qPjzdu-NY-aZDfYMaGp3_cU7RS134bqhm4x7ki-QR25W8FxoufHGZgeP3-ACrjg_bRCK6yd-Lw98= This week, United States Trade Representative Ron Kirk is traveling to North Carolina in his first domestic visit since receiving President Barack Obama's direction to complete the U.S.-Korea trade agreement. The President has asked Ambassador Kirk to initiate new discussions with his Korean counterpart to resolve outstanding issues in a way that levels the playing field for U.S. workers and producers, with the objective of completing that process by November. This Weekly Trade Spotlight focuses on the how trade can help support well-paying jobs in the Tar Heel State. July 12: Ambassador Sapiro's Interview with OECD Trade Director Ken Ash http://r20.rs6.net/tn.jsp?et=1103570180706&s=9878&e=001mw0NCPUS6uQ7kFm5vBKBgGgotZpiFQm4eIRwgxNDz1DrSM5HOgQSxWwA1m6aM01xEI3zs2rNbC48Ak7StJGQJ1sOSx1G92z0Nv_wELkjwrFrmGeGtyRHjtL6S1Dnj_Gbtd9WUtqnouGthNApdel5-anrWEVE76MiOe7hTlQek-sYOKIP13wBcipIKn-p1yBtsKcl4CEQnx0sa9x2bacvAgTli9TA8NOzjnME_XW7ptfimSOMJyXJCA== Speaking with Organisation for Economic Co-operation and Development (OECD) Trade Director Ken Ash on May 28, Deputy USTR Miriam Sapiro talks about resisting protectionism, the benefits of trade liberalisation and addressing public concerns about the effects of more open markets. ###

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