WASHINGTON - The
Office of the United States Trade Representative and the Department of Commerce
today submitted to Congress the 2002 Subsidies Enforcement Report. The Report
details efforts by USTR and the Department of Commerce to monitor and enforce
compliance against the unfair use of foreign government subsidies across a range
of industries including semiconductors, paper, fertilizer, cattle, and
and enforcing existing international rules against unfair subsidies is a key
part of our efforts to ensure fair treatment for Americans. This report
documents our work in standing up for American families, farmers and workers
across a broad spectrum of foreign subsidy issues," said U.S. Trade
Representative Robert B. Zoellick. "Foreign subsidies are the most pernicious
form of government intervention, disrupting the efficient market allocation of
resources and distorting international trade patterns."
discusses the progress of World Trade Organization (WTO) subsidy negotiations,
ongoing international steel subsidy talks, the review of China's subsidy
commitments, and, generally, subsidies enforcement efforts undertaken by USTR
and the Department of Commerce in the past year.
It describes the
steps that the United States has taken at the Organization of Economic
Cooperation and Development (OECD) to resolve the long-term structural problems
in the global steel industry. The unprecedented series of OECD discussions among
the world's major steel-producing countries culminated in a landmark decision to
begin work on an agreement that would prohibit trade-distorting subsidies in
steel. The United States will push for the strongest possible disciplines on
government intervention in the steel sector.
The Report also
details the important subsidies-enforcement implications of China's first year
as a member of the WTO as well as the inaugural year of the Transitional Review
Mechanism (TRM) instituted in connection with China's accession. The TRM will
continue to annually assess the extent and quality of China's compliance with
its WTO obligations, culminating in a final review in the tenth year of China's
WTO membership. In this first critical year of China's accession to the WTO, the
United States has closely monitored and analyzed China's subsidy programs and
economic policies, and has extended technical training opportunities to assist
the Chinese in meeting their WTO commitments. The United States will continue to
devote time and resources to this effort throughout the coming year.
explains how USTR and the Commerce Department respond to inquiries from U.S.
industries concerned with the subsidization of foreign competitors. In the past
year, USTR and the Commerce Department have continued to monitor and strictly
enforce the obligations of member countries under the WTO Subsidies Agreement.
The United States pursues enforcement through its participation in the WTO's
Subsidies Committee, bilateral contacts, multilateral pressure and, where
justified, WTO dispute settlement proceedings. The basic goal of these
activities is to deter distorting subsidies and prevent or remedy harm caused to
U.S. producers and workers. By working actively to address some of the most
important causes of unfair trade distortions, the subsidies enforcement program
is helping to strengthen the open, competitive trading environment that benefits
both American producers and consumers.
Last year, the
U.S. Government pursued U.S. industry concerns about subsidies in areas
including semiconductors, paper, fertilizer, cattle, and textiles. Particularly
noteworthy in the textile sector is the recent U.S. request to the WTO Subsidies
Committee to examine whether India's subsidized textile and apparel exports have
reached globally competitive trade volumes.
The Uruguay Round
Agreements Act (URAA) of 1994 established specific subsidy enforcement roles for
USTR and Commerce to exercise U.S. multilateral rights and address and remedy
subsidies that harm U.S. producers. Among the joint responsibilities assigned to
USTR and Commerce, as set forth in section 281(f)(4) of the URAA, is the
submission of an annual report to the Congress describing the Administration's
monitoring and enforcement activities throughout the previous year. The report
submitted today is the eighth annual report to be transmitted to the Congress
pursuant to this provision.
Subsidies Enforcement Report submitted by the Administration will be available
at www.ustr.gov and www.ita.doc.gov.