TradeView - A Kentucky World Trade Center Publication
Volume 16 Number 2
May 2005
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International Trade News

New Rules Take Effect Worldwide Requiring Treatment of Wood Packaging Materials
Some 120 countries, including the U.S., have agreed to begin enforcing the International Plant Protection Convention (IPPC) standard ISPM #15. The rule states that all regulated wood packaging materials (WPM) shall be appropriately treated and marked under an official program developed and overseen by the National Plant Protection Organization (NPPO) in the country of export. The WPM regulation may be accessed on: www.aphis.usda.gov/ppq/swp/import.html.

The regulation restricts the importation of many types of untreated wooden packaging materials such as pallets, crates, boxes, and dunnage. WPM must now be subjected to either 1) heat treatment to a minimum wood core temperature of 56ºC for a minimum of 30 minutes or 2) fumigation with methyl bromide.

WPM must be marked with the IPPC logo and the two letter ISO code for the country that treated the WPM. The marking must also include the unique number assigned by the NPPO to the company responsible for ensuring the WPM was properly treated, and either the abbreviation HT (heat treatment) or MB (methyl bromide). Paper certification (treatment certificates) will not be required.

The EU and Brazil have already started enforcing the measure. The U.S. and Costa Rica will begin enforcement on September 16, 2005. The Philippines and Chile will begin enforcement on June 1, Australia on September 1, Canada, Mexico and Colombia on September 15, the U.S. and Costa Rica on September 16, and China on January 1, 2006.

The American Lumber Standards Committee has accredited agencies in the U.S. to inspect and certify facilities to comply with heat treatment measures. A list of agencies may be found on www.alsc.org or you may contact them at 301-972-1700. For questions pertaining to the treatment and marking of WPM under the fumigation program, you may contact the National Wood Pallet & Container Association at 703-519-6104 or www.nwpca.com.

Source: www.aphis.usda.gov


 

Additional Customs Duties to be Imposed on U.S. Products Entering the EU
The EU has announced additional customs duties on certain products originating in the United States. This action follows the World Trade Organizations (WTO) ruling that "The Continued Dumping and Subsidy Offset Act" or "Byrd Amendment" was not in line with its rules. The USA was given until December 2003 to bring its legislation in line with the WTO's rules. The implementation of the additional duties was suspended until May 1, 2005 in order to give the USA the opportunity to bring its legislation in line with the WTO's rules and recommendation. A 15% additional customs duty will be applicable on specific products in four categories: paper, agricultural products, textiles and machinery products.

Source: www.europa.eu.int


 

U.S. Considers Emergency Curbs on Chinese Imports
The U.S. Department of Commerce announced in early April that it was launching investigations that could lead to emergency import restrictions on certain pants, shirts and underwear made in China. "This decision is the first step in a process to determine whether the U.S. market for these products is being disrupted and whether China is playing a role in that disruption," said Commerce Secretary Carlos Gutierrez.

A final decision on whether to restrict the imports could take more than 90 to 150 days (from early April) if the Bush administration uses the full time provided by law to consider the issue, the Commerce Department said.

Textile groups have been pressuring the U.S. government to exercise its authority to impose emergency curbs on imports from China, which they say is poised to overrun the U.S. market following the end of the global quota system on January 1. When it joined the WTO in 2001, China agreed to let the United States and other countries impose "safeguard" restrictions on its clothing and textile exports when they surge to market-disrupting levels.

Source: www.worldtrademag.com


 

U.S. Begins Free Trade Negotiations with United Arab Emirates
The Office of the U.S. Trade Representative issued a press release announcing that the United States has begun negotiations on a Free Trade Agreement with the United Arab Emirates (UAE) and began negotiations with Oman on March 12, 2005.

USTR stated in the release that the trade negotiations with the UAE and Oman are key steps toward the creation of a Middle East Free Trade Area. USTR added that each negotiation is for a separate bilateral agreement with the United States.

"These FTAs will build on those we already have with Jordan and Morocco, as well as the FTA that we recently have signed with Bahrain," Acting U.S. Trade Representative Peter F. Allgeier stated in the release. "We believe that we can move rapidly on these negotiations," he added.

The release stated that on November 15, 2004, the Bush Administration notified Congressional leaders of its intent to negotiate Free Trade Agreements with the UAE and Oman. Former U.S. Trade Representative Robert B. Zoellick visited the UAE and Oman in October 2004 to discuss with top officials the topics covered in the United States’ comprehensive FTAs, to identify particular areas for work, and to assess the UAE’s and Oman’s commitments to moving forward with an FTA, USTR stated, adding that House Ways and Means Committee Chairman Bill Thomas led a Congressional delegation to Oman and other countries in the Middle East in November 2004 to discuss similar issues.

"The United States trade relationship with the UAE is the third largest in the Middle East, behind only Israel and Saudi Arabia," USTR noted in today's release. "The U.S. has a combined trading relationship of $6 billion and a trade surplus of $2.8 billion with these two countries ($5.2 billion in total U.S.-UAE 2004 trade, with $4.1 billion in U.S. exports and $1.1 billion in U.S. imports. U.S.-Oman in 2004 trade was $748 million, with U.S. exports of $330 million and U.S. imports of $418). Major U.S. exports to these two countries include machinery, aircraft, vehicles and electrical machinery. Major imports include mineral fuel and woven apparel."

Source: www.ustr.gov


 

Port of Dubai & Port of Shanghai Become CSI Operational
The Bureau of Customs and Border Protection (Customs) announced that the port of Dubai and the port of Shanghai are the 35th and 36th operational Container Security Initiative (CSI) ports. CSI allows for the mutual risk assessment of every oceangoing container headed for the U.S. before it is loaded on a vessel in a foreign port and before that vessel is bound for U.S. seaports.

Customs stated that the 36 operational ports include: Halifax, Montreal, and Vancouver, Canada; Rotterdam, The Netherlands; Le Havre and Marseille, France; Bremerhaven and Hamburg, Germany; Antwerp and Zeebrugge, Belgium; Singapore;Yokohama, Tokyo, Nagoya, and Kobe, Japan; Hong Kong; Göteborg, Sweden;Felixstowe, Liverpool, Southampton, Thamesport, and Tilbury, United Kingdom; Genoa, La Spezia, Naples, Gioia Tauro and Livorno, Italy; Busan, Korea; Durban, South Africa; Port Klang and Tanjung Pelepas, Malaysia; Piraeus, Greece; Algeciras, Spain; Laem Chabang, Thailand; Dubai, United Arab Emirates; and Shanghai, China.

Source: Bureau of Customs and Border Protection


 

Romania, Bulgaria Move Closer to EU Membership
Romania and Bulgaria are moving forward on their efforts to join the EU in January 2007. In March, a European Parliament committee endorsed the entry of both countries, providing they implement certain political and economic reforms.

To join in 2007, Bulgaria must improve its justice and law-enforcement systems and step up the fight against corruption and organized crime. Romania was also told it needs to improve justice and law enforcement, as well as upgrade environmental protections, accelerate antitrust rules and dump state aid, particularly for its steel sector. The special entry conditions for Romania and Bulgaria indicate the EU is raising the bar for membership after taking in Cyprus, Malta and eight East European states last year.

Source: www.worldtrademag.com


 

Russia Hopes to Join WTO by End of 2005
In a press release issued by former U.S. Trade Representative Robert B. Zoellick and Russian Federation Minister of Economic Development and Trade German Gref on February 1, 2005, the trade ministers expressed optimism that United States and Russia could reach a deal on Russia’s WTO accession before the end of 2005. The release quoted Minister Gref as saying that a “very good window of opportunity” exists for Russia to have all the negotiations – including those with other WTO members – completed 'by the end of December.'"

Source: www.ustr.gov


 

ASEAN – Australia – New Zealand Begin FTA Talks
ASEAN (the Association of Southeast Asian Nations), Australia and New Zealand will begin the first round of talks soon regarding the potential of free trade in the region. The negotiations are expected to last two years with full implementation targeted at 2017. It is anticipated that the agreement will help promote better ties in relation to goods, services and investment between the countries in Southeast Asia, Australia and New Zealand.

Source: Journal of Commerce


 

Australia-Malaysia Begin FTA Talks
Australia and Malaysia are to begin talks to discuss potential bilateral trade agreements between the two countries. The talks are scheduled to begin in the next few months with the intention to boost trade between Australia and Malaysia. In 2003, Malaysia's investment in Australia totaled more than $4.8 billion, while Australia's investment in Malaysia amounted to $376 million. Malaysia is Australia's 10th largest trading partner. Australia is reported to be seeking a similar FTA with ASEAN, and already has FTAs in place with Thailand, Singapore, New Zealand and the United States.

Source: The Business Times

 

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