Mandatory Electronic SED Filing Approaches
Census intends to make AES electronic filing of SEDs mandatory for all exports by January 2005. The Trade Act of 2002 will require exporters to use AES to file export data in advance of departure, much as importers must file electronic manifest data ahead of arrival. The Census Bureau offers direct access to the system for larger exporters or Internet access for small to medium sized exporters through AES Direct (www.aesdirect.gov).
FDA And CBP Issue Bioterrorism Food Guidelines
The U.S. Food and Drug Administration (FDA) and the U.S. Bureau of Customs and Border Protection (CBP) have issued a compliance policy guide that describes their strategy for implementing the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (Bioterrorism Act).
The policy guide deals with the enforcement of the Bioterrorism Act's requirement, which became effective on December 12, 2003, that FDA receive a prior notification of all human and animal food, drinks and dietary supplements imported or offered for import to the U.S. Another requirement of the Bioterrorism Act mandates that all facilities that manufacture, process, pack or hold food for consumption in the U.S. be registered with FDA.
U.S. Joins Madrid Protocol
The U.S. joined over 60 other nations in signing an international treaty on November 2, 2003 that will make it much easier for Americans to obtain international protection for their trademarks. Previously, trademarks had to be registered on a country-by-country basis. Under the Madrid Protocol, a single trademark application filed in the U.S. forms the foundation for an international trademark registration that can be extended to other member countries. The protocol also allows a single renewal date and a single application for renewal.
European Union Expands
Ten countries joined the EU in May – the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia, Slovenia, Malta and Cyprus. Bulgaria and Romania may be asked to join in 2007 if they can reform their economies enough to meet EU standards. This addition brings the population of the EU bloc from 75 million to 453 million, making the EU the world's largest market, surpassing the 416 million population of NAFTA.
New Chinese Law Opens Distribution Channels
The Chinese retail market of 1.2 billion consumers will become fully open to foreign retail distributors under a new Chinese law that will take effect January 1. The law will allow foreign companies of any size to apply to set up their own networks for distributing to Chinese retail stores or to open their own retail stores. Until now, only large companies with more than $2 billion in sales were allowed to apply. Others were required to set up distribution networks through joint ventures with Chinese partners.
Eight Chinese Cities Identified as Rising Urban Stars
In a report released by Jones Lang LaSalle, a leading commercial real estate broker and adviser, eight Chinese cities were identified as rising urban stars. The report, which identifies 24 cities globally, is available from http://www.joneslanglasalle.com.cn/. Of the eight Chinese cities, Dalian and Suzhou are cited for their rising technology capabilities, while Beijing, Shanghai, Guangzhou/Shenzhen, Chongqing and Xian are identified as rising mega cities.
Shanghai, Beijing and Guangzhou/Shenzhen are among the most dynamic city regions in the world, and have now become commercial hubs. Dalian in north China, and Suzhou, near Shanghai, benefit from technology institutes, and are developing into technology clusters. Suzhou, in particular, has benefited from significant electronics investment in Taiwan. Chongqing and Xian were the only rising urban stars that are in inland China.
New China Visa Policy Affects Travel
On March 30, the Chinese foreign ministry revised its visa regulations for business travelers from the U.S. in retaliation for required fingerprinting and photographing of Chinese visitors to the U.S. Effective immediately, U.S. visitors will be given visas according to the purpose of their visit, and charged an appropriate visa fee; some business travelers to China from the U.S. will be required to be interviewed, and will need to present themselves at the designated Chinese consulate or embassy at the appropriate time; and U.S. citizens will no longer be able to apply for a visa on arrival in China; they will all have to apply, and receive, a Chinese visa before arrival in China. Brazil has introduced similar retaliatory measures for U.S. visitors as well.
U.S. – China Mediation Center Created
A new U.S. – China Mediation Center has been created to settle disputes without having to navigate the two nations' sometimes difficult court systems. The center has offices in New York and Beijing, but was initiated by KWTC Chairman Jay Tannon, who introduced the China Council for the Promotion of Trade (CCPIT) to the CPR Institute for Dispute Resolution in New York. Intellectual property rights, job performance and contract interpretation disputes are among the cases the mediation center is likely to draw.
Embargo lifted on U.S. Exports to Libya
In late April, the U.S. lifted much of the trade embargo imposed on Libya to reflect the country's continuing good faith effort to completely dismantle its weapons of mass destruction and missile programs, and adherence to its renunciation of terrorism. The Bureau of Industry & Security will now assume primary responsibility for controlling exports to Libya. More information about licensing requirements may be found on www.bis.doc.gov/PoliciesAndRegulations/LibyaSummary.htm.
Central American Free Trade Agreement (CAFTA) Signed
In December 2003, the U.S. Guatemala, Nicaragua, El Salvador and Honduras signed the CAFTA. Congress must still ratify the treaty. Under the CAFTA, 80% of U.S. consumer and industrial products would be able to enter duty-free as soon as CAFTA went into force, 85% within 5 years, and 100% in 10 years. Costa Rica has not signed CAFTA, but may do so in the future.
U.S. – Australia Free Trade Agreement to Take Effect January 1
The U.S. – Austrialia FTA is likely to be ratified by the U.S. and Australia on schedule and should take effect January 1, 2005. The U.S. currently enjoys a $9.1 billion trade surplus with Australia. The agreement will eliminate 99% of Australian tariffs on U.S.-manufactured goods as soon as the pact takes effect. By 2015, all trade in goods will become duty-free. It will also improve transparency and efficiency in administering customs procedures, open markets in professional services, and facilitate obtaining government procurement contracts.
U.S. Free Trade Agreement Update
Since the passage of the Trade Promotion Authority Act of 2002, giving the administration broad authority to negotiate trade agreements, the U.S. has been actively pursuing multiple free-trade initiatives.
Current Bilateral FTAs: NAFTA (Canada, Mexico), Israel, Jordan, Chile, Singapore
FTAs Awaiting Ratification: Australia, Morocco, CAFTA (El Salvador, Guatemala, Honduras, Nicaragua, and potentially Costa Rica)
FTAs Being Negotiated: Dominican Republic, Bahrain, Southern Africa Customs Union (South Africa, Namibia, Botswana, Swaziland, Lesotho), Free Trade Agreement of the Americas (34 nations)
Negotiations Beginning This Year: Thailand, Panama, Andean Countries (Ecuador, Bolivia, Colombia, Peru)
UNCTAD Survey Lists Most Attractive Investment Destinations
The 2004 Global Investment Prospects Assessent, a survey of multinational executives recently conducted by the U.N. Conference on Trade & Development, lists the following countries as the most attractive for medium-term global investment flows:
Africa
1. South Africa
2. Angola, Tanzania (tied)
Asia
1. China
2. India
3. Thailand
Latin America
1. Mexico
2. Brazil, Chile (tied)
Central/Eastern Europe
1. Poland, Czech Republic (tied)
2. Romania, Russia (tied)
Developed Economies
1. United States
2. United Kingdom
3. Canada, France (tied)
