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2014

Trade Policy Agenda

and 2013

Annual Report

of the President of the United States on the Trade Agreements Program

Ambassador Michael B.G. Froman

Office of the United States Trade Representative

FOREWORD

The 2014 Trade Policy Agenda and 2013 Annual Report of the President of the United States on the Trade Agreements Program are submitted to the Congress pursuant to Section 163 of the Trade Act of

1974, as amended (19 U.S.C. 2213). Chapter II and Annex II of this document meet the requirements of

Sections 122 and 124 of the Uruguay Round Agreements Act with respect to the World Trade

Organization. In addition, the report also includes an annex listing trade agreements entered into by the

United States since 1984. Goods trade data are for full year 2013. Services data by country are only

available through 2012.

The Office of the United States Trade Representative (USTR) is responsible for the preparation of this

report. U.S. Trade Representative Michael Froman gratefully acknowledges the contributions of all

USTR staff to the writing and production of this report and notes, in particular, the contributions of

Brittany Bauer, Colby Clark, and Michael Roberts. Thanks are extended to partner Executive Branch agencies, including the Environmental Protection Agency and the Departments of Agriculture, Commerce, Health and Human Services, Justice, Labor, State, and Treasury.

March 2014

LIST OF FREQUENTLY USED ACRONYMS

AD ................................................................................... Antidumping

AGOA ............................................................................. African Growth and Opportunity Act

APEC .............................................................................. Asia-Pacific Economic Cooperation

ASEAN ........................................................................... Association of Southeast Asian Nations

ATC ................................................................................ Agreement on Textiles and Clothing

ATPA .............................................................................. Andean Trade Preferences Act

ATPDEA

......................................................................... Andean Trade Promotion & Drug Eradication

Act

BIA .................................................................................. Built-In Agenda

BIT .................................................................................. Bilateral Investment Treaty

BOP ................................................................................. Balance of Payments

CACM ............................................................................. Central American Common Market

CAFTA

........................................................................... Central American Free Trade Area

CARICOM ...................................................................... Caribbean Common Market

CBERA ........................................................................... Caribbean Basin Economic Recovery Act

CBI .................................................................................. Caribbean Basin Initiative

CFTA .............................................................................. Canada Free Trade Agreement

CITEL ............................................................................. Telecommunications division of the OAS

COMESA ........................................................................ Common Market for Eastern & Southern Africa

CTE ................................................................................. Committee on Trade and the Environment

CTG ................................................................................ Council for Trade in Goods

CVD ................................................................................ Countervailing Duty

DDA ................................................................................ Doha Development Agenda

DSB ................................................................................. Dispute Settlement Body

EAI .................................................................................. Enterprise for ASEAN Initiative

DSU

................................................................................ Dispute Settlement Understanding

EU ................................................................................... European Union

EFTA .............................................................................. European Free Trade Association

FTAA .............................................................................. Free Trade Area of the Americas

FOIA .............................................................................. Freedom of Information Act

GATT .............................................................................. General Agreement on Tariffs and Trade

GATS .............................................................................. General Agreements on Trade in Services

GDP ................................................................................ Gross Domestic Product

GEC ................................................................................ Global Electronic Commerce

GSP ................................................................................. Generalized System of Preferences

GPA

................................................................................ Government Procurement Agreement

IFI

.................................................................................... International Financial Institution

IPR .................................................................................. Intellectual Property Rights

ITA .................................................................................. Information Technology Agreement

LDBDC ........................................................................... Least-Developed Beneficiary Developing

Country

MAI ................................................................................. Multilateral Agreement on Investment

MEFTA ........................................................................... Middle East Free Trade Area

MERCOSUL/MERCOSUR ............................................ Southern Common Market

MFA ................................................................................ Multifiber Arrangement

MFN ................................................................................ Most Favored Nation

MOSS .............................................................................. Market-Oriented, Sector-Selective

MOU

............................................................................... Memorandum of Understanding

MRA ............................................................................... Mutual Recognition Agreement

NAFTA

........................................................................... North American Free Trade Agreement

NEC ................................................................................ National Economic Council

NIS .................................................................................. Newly Independent States

NSC ................................................................................. National Security Council

NTR ................................................................................ Normal Trade Relations

OAS ................................................................................ Organization of American States

OECD .............................................................................. Organization for Economic Cooperation and

Development

OPIC ............................................................................... Overseas Private Investment Corporation

PNTR .............................................................................. Permanent Normal Trade Relations

ROU ................................................................................ Record of Understanding

SACU .............................................................................. Southern African Customs Union

SADC .............................................................................. Southern African Development Community

SME ................................................................................ Small and Medium Size Enterprise

SPS

.................................................................................. Sanitary and Phytosanitary Measures

SRM

............................................................................... Specified Risk Material

TAA ................................................................................ Trade Adjustment Assistance

TABD

.............................................................................. Trans-Atlantic Business Dialogue

TACD

.............................................................................. Trans-Atlantic Consumer Dialogue

TAEVD ........................................................................... Trans-Atlantic Environment Dialogue

TALD .............................................................................. Trans-Atlantic Labor Dialogue

TBT ................................................................................. Technical Barriers to Trade

TEP ................................................................................. Transatlantic Economic Partnership

TIFA ................................................................................ Trade & Investment Framework Agreement

TPRG .............................................................................. Trade Policy Review Group

TPP .................................................................................. Trans-Pacific Partnership

TPSC ............................................................................... Trade Policy Staff Committee

TRIMS ............................................................................ Trade Related Investment Measures

TRIPS .............................................................................. Trade Related Intellectual Property Rights

T-TIP ............................................................................... Trans-Atlantic Trade and Investment Partnership

UAE ................................................................................ United Arab Emirates

UNCTAD

........................................................................ United Nations Conference on Trade &

Development

UNDP .............................................................................. United Nations Development Program

URAA ............................................................................. Uruguay Round Agreements Act

USDA .............................................................................. U.S. Department of Agriculture

USITC ............................................................................. U.S. International Trade Commission

USTR .............................................................................. United States Trade Representative

VRA ............................................................................... Voluntary Restraint Agreement

WAEMU ........................................................................ West African Economic & Monetary Union

WB ................................................................................. World Bank

WTO ............................................................................... World Trade Organization

I.

TABLE OF CONTENTS

I. THE PRESIDENT'S TRADE POLICY AGENDA .............................................................................................. 1

II. THE WORLD TRADE ORGANIZATION ......................................................................................................... 1

A. INTRODUCTION ..................................................................................................................................................... 1

B. THE DOHA DEVELOPMENT AGENDA UNDER THE TRADE NEGOTIATIONS COMMITTEE AND OTHER PRIORITY

WTO ACTIVITIES ...................................................................................................................................................... 2

1. Committee on Agriculture, Special S

ession ..................................................................................................... 3

2. Council for Trade in Services, Special Session ................................................................................................ 4

3. Negotiating Group on Non

-Agricultural Market Access .................................................................................. 5

4. Negotiating Group on Rules ............................................................................................................................. 6

5. Negotiating Group on Trade Facilitation ........................................................................................................ 7

6. Committee on Trade and Environment, Special Session ................................................................................ 10

7. Dispute Settlement Body, Special Session ...................................................................................................... 10

8. Council for Trade-Related Aspects of Intellectual Property Rights, Special Session .................................... 11

9. Committee on Trade and Development, Special Session ............................................................................... 13

C. WORK PROGRAMS ESTABLISHED IN THE DOHA DEVELOPMENT AGENDA ........................................................... 15

1. Working Group on Trade, Debt, and Finance ............................................................................................... 15

2. Working Group on Trade and Transfer of Technology .................................................................................. 16

3. Work Program on Electronic Commerce ....................................................................................................... 17

D. GENERAL COUNCIL ACTIVITIES .......................................................................................................................... 18

E. COUNCIL FOR TRADE IN GOODS .......................................................................................................................... 19

1. Committee on Agriculture .............................................................................................................................. 20

2. Committee on Market Access ......................................................................................................................... 22

3. Committee on the Application of Sanitary and Phytosanitary Measures ....................................................... 24

4. Committee on Trade-Related Investment Measures ....................................................................................... 25

5. Committee on Subsidies and Countervailing Measures ................................................................................. 27

6. Committee on Customs Valuation .................................................................................................................. 31

7. Committee on Rules of Origin ........................................................................................................................ 33

8. Committee on Technical Barriers to Trade .................................................................................................... 35

9. Committee on Antidumping Practices ............................................................................................................ 38

10. Committee on Import Licensing

................................................................................................................... 41

11. Committee on Safeguards ............................................................................................................................ 42

12. Working Party on State Trading Enterprises ............................................................................................... 44

F. COUNCIL ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS ................................................. 45

G. COUNCIL FOR TRADE IN SERVICES ...................................................................................................................... 50

1. Committee on Trade in Financial Services .................................................................................................... 51

2. Working Party on Domestic Regulation ......................................................................................................... 51

3. Working Party on GATS Rules ....................................................................................................................... 52

4. Committee on Specific Commitments ............................................................................................................. 53

H. DISPUTE SETTLEMENT UNDERSTANDING ............................................................................................................ 54

I. TRADE POLICY REVIEW BODY ............................................................................................................................. 96

J. OTHER GENERAL COUNCIL BODIES/ACTIVITIES .................................................................................................. 98

1. Committee on Trade and Environment .......................................................................................................... 98

2. Committee on Trade and Development .......................................................................................................... 99

3. Committee on Balance-of-Payments Restrictions ........................................................................................ 102

4. Committee on Budget, Finance and Administration .................................................................................... 103

5. Committee on Regional Trade Agreements .................................................................................................. 104

II.

6. Accessions to the World Trade Organization ............................................................................................... 105

K. PLURILATERAL AGREEMENTS ........................................................................................................................... 111

1. Committee on Trade in Civil Aircraft .......................................................................................................... 111

2. Committee on Government Procurement ..................................................................................................... 112

3. Committee of Participants on the Expansion of Trade in Information

Technology Products ...................... 115

III. BILATERAL AND REGIONAL NEGOTIATIONS AND AGREEMENTS .............................................. 117

A. FREE TRADE AGREEMENTS ............................................................................................................................... 117

1. Australia ....................................................................................................................................................... 117

2. Bahrain ........................................................................................................................................................ 117

3. Central America and the Dominican Republic ............................................................................................ 118

4. Chile ............................................................................................................................................................. 122

5. Colombia ...................................................................................................................................................... 123

6. Israel ............................................................................................................................................................ 125

7. Jordan .......................................................................................................................................................... 126

8. Republic of Korea ........................................................................................................................................ 127

9. Morocco ....................................................................................................................................................... 129

10. North American Free Trade Agreement ..................................................................................................... 130

11. Oman .......................................................................................................................................................... 132

12. Panama ...................................................................................................................................................... 132

13. Peru ............................................................................................................................................................ 134

14. Singapore ................................................................................................................................................... 135

B. OTHER BILATERAL AND REGIONAL INITIATIVES ............................................................................................... 136

1. The Americas................................................................................................................................................ 136

2. Europe and the Middle East ......................................................................................................................... 138

3. Japan, Republic of Korea, and the Asia

-Pacific Economic Cooperation Forum ......................................... 141

4. China, Hong Kong, and Taiwan

146

5. Southeast Asia and the Pacific ..................................................................................................................... 149

6. Sub

-Saharan Africa ...................................................................................................................................... 151

7. South and Central Asia

................................................................................................................................ 152

IV. OTHER TRADE ACTIVITIES ....................................................................................................................... 157

A. TRADE AND THE ENVIRONMENT ....................................................................................................................... 157

1. Multilateral Fora ......................................................................................................................................... 157

2. Bilateral and Regional Activities ................................................................................................................. 157

B. TRADE AND LABOR ........................................................................................................................................... 159

1. Multilateral and Regional Fora

................................................................................................................... 159

2. Bilateral Agreements and Preference Programs ......................................................................................... 160

C. SMALL AND MEDIUM SIZED BUSINESS INITIATIVE............................................................................................ 163

1. USTR SME-Related Trade Policy Activities ................................................................................................ 163

2. USTR Interagency SME Activities ................................................................................................................ 165

3. USTR's SME Outreach and Consultations .................................................................................................. 165

D. IMPORT FOOD SAFETY ...................................................................................................................................... 166

1. APEC Food Safety Cooperation Forum and Partnership Training Institute Network ................................ 166

E. ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT ................................................................ 167

1. Trade Committee Work Program ................................................................................................................. 168

2. Trade Committee Dialogue with Non

-OECD Members ............................................................................... 169

3. Other OECD Work Related to Trade ........................................................................................................... 170

F. LOCALIZATION BARRIERS TO TRADE ................................................................................................................ 170

G. TRADE IN SERVICES AGREEMENT ..................................................................................................................... 171

III.

V. TRADE ENFORCEMENT ACTIVITIES ........................................................................................................ 173

A. ENFORCING U.S. TRADE AGREEMENTS ............................................................................................................ 173

1. Overview ...................................................................................................................................................... 173

2. WTO Dispute Settlement .............................................................................................................................. 175

3. Other Monitoring and Enforcement Activities ............................................................................................. 176

4. Monitoring Foreign Standards-related Measures and SPS Barriers ........................................................... 178

B. U.S. TRADE LAWS ............................................................................................................................................ 179

1. Section 301 ................................................................................................................................................... 179

2. Special 301 ................................................................................................................................................... 182

3. Section 1377 Review of Telecommunications Agreements ........................................................................... 184

4. Antidumping Actions .................................................................................................................................... 184

5. Countervailing Duty Actions ........................................................................................................................ 185

6. Other Import Practices ................................................................................................................................ 185

7. Trade Adjustment Assistance ....................................................................................................................... 188

8. United States Preference Programs ............................................................................................................. 190

VI. TRADE POLICY DEVELOPMENT .............................................................................................................. 197

A. TRADE CAPACITY BUILDING ("AID FOR TRADE")............................................................................................. 197

1. The Enhanced Integrated Framework .......................................................................................................... 198

2. World Trade Organization

-Related U.S. Trade-Related Assistance ............................................................ 198

3. TCB Initiatives for Africa ............................................................................................................................. 200

4. Free Trade Agreement Negotiations ............................................................................................................ 201

5. Standards Alliance ....................................................................................................................................... 202

B. PUBLIC INPUT AND TRANSPARENCY ................................................................................................................. 203

1. Public Outreach ........................................................................................................................................... 203

2. The Trade Advisory Committee System ........................................................................................................ 205

3. State and Local Government Relations ........................................................................................................ 208

C. POLICY COORDINATION AND FREEDOM OF INFORMATION ACT ........................................................................ 209

ANNEX 1

ANNEX 2

ANNEX 3

THE PRESIDENT'S 2014 TRADE POLICY

AGENDA

I.

The President's 2014 Trade Policy Agenda | 1

I. THE PRESIDENT'S TRADE POLICY AGENDA:

Supporting Jobs and Economic Growth through Trade

Trade and investment play a critical role in the Obama Administration's overarching strategy to create

jobs, promote growth and strengthen the middle class. They do so by opening markets and leveling the

playing field for American producers, and fully enforcing our trade rights. This, in turn, builds ladders of

opportunity and higher living standards for families, farmers, ranchers, manufacturers, services suppliers,

workers, and consumers. As the world shifts to a global innovation economy, the United States must be

well-positioned to prosper from and sustain the jobs of the 21st century that will support our growth and

strengthen America's middle class. To complement our national strengths and capitalize on America's comparative advantage in innovation , President Obama has put forward an ambitious trade policy agenda

that aims to strategically position American businesses, workers, and consumers at the center of a 21st

century global trading system that reflects U.S. values and goals. We seek to enhance the global competitiveness of U.S. goods and services and strengthen our economy by continuing American

leadership in negotiating high standard agreements that help U.S. exporters gain access to billions of

customers beyond our borders.

With low or no tariffs on the vast majority of products, a transparent and sensible regulatory environment,

and an open investment regime, U.S. barriers to imports and investment from abroad are among the

lowest in the world. With partners across the Federal government, the Office of the United States Trade

Representative (USTR) is focused on creating and maintaining open markets for U.S. exports and

ensuring a level playing field for U.S. producers and workers to compete. We constantly engage with our

many trading partners to remove specific barriers and expand trade. We work with developing nations to

alleviate poverty and foster economic growth that simultaneously creates better market opportunities for

U.S. exporters. We believe in using trade's potential to drive higher standards for labor rights and for

environmental protection. We vigorously fight to ensure that hard -working Americans are able to fully reap the benefits of trade by robustly monitoring and enforcing our rights. And we advance all of these

objectives with broad input from a wide range of stakeholders to craft U.S. trade policy in a transparent

way so that it reflects the values and aspirations of the American people and our global leadership role.

The President's Trade Agenda for 2014 describes how the Administration will continue to use every available policy tool over the next year and continue to develop new tools to pursue the most efficient and productive pathways to expand trade and support economic growth. Our efforts in

2014 will build on

many successful 2013 initiatives. Last year the United States launched two groundbreaking trade negotiations - the Transatlantic Trade and Investment Partnership (T-TIP) and the Trade in Services

Agreement (TiSA). We also made substantial progress towards concluding the Trans-Pacific Partnership

(TPP) negotiations, and secured the first major multilateral agreement in two decades. This year we expect to conclude negotiations with TPP countries to secure a next-generation, high-standard trade agreement in the world's fastest growing region. We expect to make significant progress with the European Union (EU) toward a T-TIP agreement to further strengthen the world's largest trade

relationship. We will advance negotiations on the TiSA. And in Geneva, we will continue to strengthen

the multilateral trading system and advance promising pathways for 21st century trade liberalization by

maintaining America's leadership role at the World Trade Organization (WTO), expanding the Information Technology Agreement (ITA), and launching negotiations on an Environmental Goods

Agreement (EGA). These are just some of the many pathways the Administration will pursue to increase

U.S. exports to the world while supporting job growth here at home.

To facilitate the conclusion, approval, and implementation of our market-opening negotiating initiatives,

we are working with Congress to support broad bipartisan passage of Trade Promotion Authority (TPA). 2 | I. The President's 2014 Trade Policy Agenda

TPA is a critical tool for Congress to update and assert its role in trade policy, to guide current and future

negotiations, and to ensure the completion of market-opening, job-supporting agreements. TPA is an important part of the Administration's larger strategy of increasing U.S. exports and global econo mic competitiveness.

In 2014, the Obama Administration will continue to advance trade policies that promote open markets to

enable additional job -supporting U.S. exports and sustained economic growth.quotesdbs_dbs27.pdfusesText_33

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