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SANDLER, TRAVIS & ROSENBERG, P.A. An International Trade and Business Practice “A Washington DC Perspective: White House & Congressional Initiatives on US Trade Policy” Jennifer Mulveny Senior Director, Trade and Legislative Affairs May, 13, 2010 © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. DISCLAIMER All materials contained in this presentation are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written approval of Sandler, Travis & Rosenberg, P.A. You may not alter or remove any trademark, copyright or other notice from copies of the content. The materials contained in this presentation are provided for informational use only and should not be considered legal advice. The hiring of a lawyer or Government Relations representative is an important decision that should not be based solely on advertisements or seminar/ webinar materials. Before you decide, contact us and we will send you free written information about our qualifications and experience. © 2010 Sandler, Travis & Rosenberg, P.A. All Rights Reserved. © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 2 The 2010 US Trade Agenda The President’s Trade Agenda • Increasing Exports in Five Years = Jobs • National Export Initiative • New Trade Deals • Enforcement • Doha, Asia and Pending FTAs © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 3 The 2010 US Trade Agenda Double U.S. Exports • 2001-2008 = 80% Increase in Exports – 8 FTAs, 14 countries • 1% Rise in Exports = 1.5 million jobs © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 4 The 2010 US Trade Agenda National Export Initiative OBJECTIVES • Export Promotion Funding and Agencies Coordination • Commercial Advocacy • Increase Government Focus on Barriers to Trade and Market Access • Creation of Export Promotion Cabinet – EO, March 11, 2010 © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 5 The 2010 US Trade Agenda National Export Initiative • • • • • OTHER GOALS Increase exports to Emerging Countries Support Growth of Emerging Technologies Increase Access to More Markets for Companies Exporting to Only One Country Enforce FTAs and Lower Trade Barriers Give a Stronger Voice to SMEs in Government’s Inter-Agency Process © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 6 The 2010 US Trade Agenda National Export Initiative ADMINISTRATIVE ACTIONS • Ex-Im funding increased from $4bn to $6bn – 20% Credit for SMEs • 20% Budget Increase for Dept of Commerce • $54M USDA Trade Promotion • ITC Hearings on Barriers to SMEs • USTR: New focus on SMEs © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 7 The 2010 US Trade Agenda National Export Initiative TRADE FACILITATION: ARE PORTS READY? • Bottled up Shipping and Transportation Lanes • Insufficient Containers • Freight Infrastructure lagging behind most developed countries • Need for maximum use of information technology • Transparency and predictability of Customs actions • Standardization and simplification of the goods declaration and supporting documents • Coordinated interventions with other border agencies; partnerships between Customs and the trade. © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 8 The 2010 US Trade Agenda National Export Initiative CONGRESS • Hearings: – 4/29/10—SFC Hearing: “Doubling U.S. Exports, Focusing on Seaports” – 4/28/10—SBC Hearing: “Impact of Small Business Trade Policy on Job Creation and Economic Growth • Small Business Jobs Bill to be Unveiled – $10bn+ of incentives – Goal to pass by Memorial Day © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 9 The 2010 US Trade Agenda New Trade Deals—TPP • Australia, Brunei Darussalam, Chile, New Zealand, Peru, Singapore, and Vietnam – Other countries? • Congress Notification: Dec. 14, 2009 • First round of negotiations: March 15-19 (Australia) • Second round of negotiations: June 14-18 (US) • No defined structured yet • Model for future FTAs? © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 10 The 2010 US Trade Agenda New Trade Deals: ACTA We will protect American inventiveness and creativity with all the tools of trade policy. Insufficient protection of intellectual property rights undermines key U.S. comparative advantages in innovation and creativity, to the detriment of American businesses and workers. We will address insufficient protection of intellectual property rights by negotiating and enforcing effective intellectual property protection in a manner compatible with basic principles of the public welfare. • IPR Issues: Australia, Canada, EU, Japan, Korea, Mexico, Morocco, New Zealand, Singapore, Switzerland and the US • Diverse interests: copyrights-trademark-IP • Competing domestic industry interests • Jan 26-29: Latest round of negotiations • Transparency Controversy The President’s 2010 Trade Agenda © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 11 The 2010 US Trade Agenda New Trade Deals: MTB • Boost to U.S. manufacturers • Three year duty free for qualifying products – No Domestic Production – Under $500k revenue loss • Ways and Means Committee Introduced Legislation on December 15, 2009 • Two tranche solution • Republican “Earmarks Moratorium” © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. The 2010 US Trade Agenda Export Control Reform • Many export controls are Cold War relics • Numerous agencies with overlapping controls – Commerce, State, OFAC, Energy, Defense • Current Status – Administration and Congress currently examining changes to export control laws and regulations to implement suggested reforms. • Private Sector Supportive © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 13 The 2010 US Trade Agenda Export Enforcement • Market Openness – National Trade Estimate – SPS and Technical Barriers to Trade • • • • • Section 301—Intellectual Property Section 1377—Telecommunications WTO Dispute Resolution FTA Dispute Resolution Body Labor/Environment © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 14 The 2010 US Trade Agenda Import Enforcement • Tainted Products/Food – CPSC co-located at CBP targeting center • Illegal Environmental Practices – Lacey Act (Gibson Guitars) • Targeting Centers (CBP & CPSC, FDA…) • IPR Violations • HTWG (Environment + Labor in FTAs) • AD/CVD © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 15 The 2010 US Trade Agenda Enforcement and Retaliation • • • • • Mexico Trucking (NAFTA) Brazil Cotton (WTO) China CVD Claims Against U.S. Products Russia Ag Barriers EU Ag Barriers © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 16 The 2010 US Trade Agenda Enforcement: U.S. – China Relations “For too long, the United States has pursued diplomacy at the expense of American jobs and exports” – Senator Baucus (April 3, 2010) • • • • • • • Sensitive Relationship Strategic Economic Dialogue (SED) this month Currency Manipulation Investment Barriers AD/CV Actions 421 Tire Case in 2009 Apparel Safeguard Soon? © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. The 2010 US Trade Agenda Doha: WTO Negotiations The value of what the United States would give in market opening, along with a reduction of U.S. agriculture support, is wellknown and easily calculable. In contrast, the value of new opportunities for our businesses, workers, farmers, and ranchers remains vague because of the broad flexibilities available to key emerging markets, like China, India, and Brazil that are fast growing economies and important markets of the future. The President’s 2010 Trade Agenda © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. • Dec. 2009 Ministerial • Progress on Doha in 2010? – “Stock-taking” March Meetings Postponed • Monitoring and enforcement activities • Congressional support – WTO Vote this Year • Russia Accession? • Brazil Retaliation subdued 18 The 2010 US Trade Agenda Pending FTAs • Korea: Seventh largest trading partner – Grains, animal feeds, fruit, vegetables, dairy products, meats, seafood, processed foods and beverages, machinery, electronics, pharmaceutical, medical devices, services • Colombia: One Way Trade Preferences; $1.1 billion more once fully implemented (ITC) – Meat, Grains, soybean, chemicals and plastics, machinery and electronics, services • Panama – Meat, grain, frozen potato products and certain processed foods, motor vehicles, machinery © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 19 The 2010 US Trade Agenda GET INVOLVED! • • • • • Monitor Legislation Representation Advocacy Data analysis Policy Papers © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. The 2010 US Trade Agenda Thank you! Jennifer Mulveny Senior Director, Trade and Legislative Affairs Washington, D.C. Telephone: (202) 216-9307 [email protected] © 2010 Sandler, Travis & Rosenberg, P.A. All rights reserved. 21 The 2010 US Trade Agenda