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Beijing taken to task for turning a blind eye to an ''epidemic'' of fake goods

WASHINGTON, DC - 03/14/06 - China is still not doing enough to fulfill its WTO obligations nor to rein in an "epidemic" of counterfeit goods, according to the Bush Administration in its annual trade report to Congress.

The report - The 2006 Trade Policy Agenda and the 2005 Annual Report of the President of the United States on the Trade Agreements Program - is compiled annually as mandated by federal law by the Office of the US Trade Representative (USTR).

Presented by USTR Rob Portman, the report also reaffirmed the Bush Administration's desire to clinch a global deal at the World Trade Organization and promote Middle East reform through trade opening.

While praising China for taking major steps to liberalize its economy since joining the WTO in late 2001, the report took Beijing to task for not doing all that it could to curtail product piracy and the "widespread abuse" of intellectual property rights.

At this point, the report said, "China's implementation of its WTO obligations " are still incomplete."

Counterfeiting and piracy in China "remain at epidemic levels and cause serious economic harm to US businesses in virtually every sector of the economy," it said.

Despite its commitments as a WTO member, China "has yet to confer full market access to US companies nor to give those firms already present in the country unfettered freedom of operation," the report said.

"In 2006, the Administration will continue its relentless efforts to ensure China's full compliance with its WTO commitments, with particular emphasis on reducing IPR infringement levels in China," the report said, adding that the US wants to "cooperate with China on trade questions."

But, it warned, the Administration "will not hesitate to employ the full range of dispute settlement and other tools available" to force China to heel on trade disputes.

The USTR wrote in the report that Washington "remains committed to wrapping up the WTO's Doha Round of trade liberalization talks this year," despite the on-going contention preventing a consensus on the issue of agricultural tariffs.

"The potential benefits from the successful Doha Round for the United States and its trading partners, especially in the developing nations, are enormous, and we will continue to do all we can to achieve a successful result," he said.

"In parallel to its Doha round efforts, the administration will move vigorously to negotiate new bilateral and regional trade agreements to create a host of new opportunities for US workers, farmers and businesses," added Portman.

The US recently secured its 14th bilateral free trade agreement with the conclusion of talks with Colombia. Washington is currently conducting free trade negotiations with ten more countries including South Korea.

Shortly after the report was presented to Congress, USTR General Counsel James Mendenhall told a business conference in Beijing that "the US was determined that China should be a responsible stakeholder in the global trading system."

Stating that China was still not doing enough to protect IPR and that Washington would keep pressing for more effective measures, he said China had agreed to study the grievances that the US delegation had laid out on the question of car parts and he "hoped the right result would be forthcoming."

Mendenhall was in the Chinese capital for talks with Chinese officials on a number of trade issues, including Chinese barriers to imports of foreign auto parts.

Before leaving Washington, Mendenhall told a press briefing that the US was "seriously considering" bringing a case before the WTO on China's rules on auto part imports, and that it was working closely with the European Union on the issue.

Mendenhall's comments closely follow demands in both the Senate and the House of Representatives that the Bush Administration enforce trade rules more vigorously.

The USTR, he said, has responded to the criticism by promising to establish a task force to monitor and enforce China's adherence to trade rules "in the near future."

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Korea, US Free Trade Pact ''Possible'' by Early 2007

WASHINGTON, DC – 10/25/06 – A free trade pact between the US and South Korea could become a reality by early 2007, says chief US negotiator Wendy Cutler at the opening of this week’s fourth round of talks between the two countries; since the two sides launched FTA negotiations in February they have reported little progress even though they postponed consideration of the most politically sensitive issues, such as US access to the Korean rice market.