The US proposed to end duties on apparel, textiles and other manufactured goods from the rest of the Americas as a step toward freeing trade in most of the Western Hemisphere. The tariffs would be removed by 2015.
The proposal, while opening some protected industries in the US to increased foreign competition, doesn't address shields for US sugar, cotton, citrus and peanut producers, which many Latin American countries say must be considered for a Free Trade Area of the Americas agreement to be completed on schedule by 2005.
US Trade Representative Robert Zoellick said the most sensitive agricultural issues must be dealt with globally, in negotiations at the Geneva-based WTO. Today's proposal still shows the US is serious about taking on domestic interests to help move the Americas trade accord ahead, he said.
"The US has created a detailed road map for free trade in the Western Hemisphere," Zoellick said at a news conference.
"We've put all our tariffs on the table, and we now hope our trading partners will do the same." The proposed free-trading area has support from corporations such as Citigroup Inc, Procter & Gamble Co and Kellogg Co that are counting on an expanded market for financial services and consumer goods. Caterpillar Inc, the world's largest maker of earth-moving equipment, said it stands to save more than US$13,000 in duties on each grader it exports to Latin America.
The US proposal calls for 65 percent of manufactured goods to enter the US duty-free upon completion of an agreement. The rest are to be phased in over periods of up to 10 years.
The US, Canada and Mexico have been part of the North American Free Trade Agreement (NAFTA) since 1994. Chile and the US signed an accord this year.
Negotiations on the Americas accord began in 1994 with the aim of eliminating trade barriers and setting trade rules in 34 countries. Only Cuba is to be excluded. The hemispheric market encompasses more than 800 million consumers and a trillion dollars in annual commerce.
Zoellick cited a 2001 study from the University of Michigan that said an average US family of four can expect to save about US$800 a year through tariff cuts if the talks succeed.
Some US trading partners are more apprehensive. So is the US textile and apparel industry, the first to lose protection under the George W. Bush administration's proposal.
Brazil's new president, Luiz Inacio Lula da Silva, has said the US wants to use the agreement to "annex" Latin America.
The US and Brazil are chairing the negotiations.
"Agriculture is the principal obstacle to any trade agreement, because it's really the main thing developing countries like Brazil can sell," Jose Augusto de Castro, president of the Brazilian Foreign Trade Association, said.
US duties on imported textiles and apparel are to end five years after the completion of negotiations on an accord, Zoellick said. Other counties will have to offer the same duty-free access to US-made textiles and apparel.
"This goes to one of the points we hear from our apparel industry," he said. "They're willing to compete if it's a level playing field."
FOUR DESIGNATED AREAS: Notices were issued for live-fire exercises in waters south and northwest of Penghu, northeast of Keelung and west of Kaohsiung, they said The military is planning three major annual exercises across the army, navy and air force this month, with the navy’s “Hai Chiang” (海強, “Sea Strong”) drills running from today through Friday, the Ministry of National Defense said yesterday. The Hai Chiang exercise, which is to take place in waters surrounding Taiwan, would feature P-3C Orion maritime patrol aircraft and S-70C anti-submarine helicopters, the ministry said, adding that the drills aim to bolster the nation’s offshore defensive capabilities. China has intensified military and psychological pressure against Taiwan, repeatedly sending warplanes and vessels into areas near the nation’s air defense identification zone and across
FORCED LABOR: A US court listed three Taiwanese and nine firms based in Taiwan in its indictment, with eight of the companies registered at the same address Nine companies registered in Taiwan, as well as three Taiwanese, on Tuesday were named by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) as Specially Designated Nationals (SDNs) as a result of a US federal court indictment. The indictment unsealed at the federal court in Brooklyn, New York, said that Chen Zhi (陳志), a dual Cambodian-British national, is being indicted for fraud conspiracy, money laundering and overseeing Prince Holding Group’s forced-labor scam camps in Cambodia. At its peak, the company allegedly made US$30 million per day, court documents showed. The US government has seized Chen’s noncustodial wallet, which contains
SUPPLY CHAIN: Taiwan’s advantages in the drone industry include rapid production capacity that is independent of Chinese-made parts, the economic ministry said The Executive Yuan yesterday approved plans to invest NT$44.2 billion (US$1.44 billion) into domestic production of uncrewed aerial vehicles over the next six years, bringing Taiwan’s output value to more than NT$40 billion by 2030 and making the nation Asia’s democratic hub for the drone supply chain. The proposed budget has NT$33.8 billion in new allocations and NT$10.43 billion in existing funds, the Ministry of Economic Affairs said. Under the new development program, the public sector would purchase nearly 100,000 drones, of which 50,898 would be for civil and government use, while 48,750 would be for national defense, it said. The Ministry of
SENATE RECOMMENDATION: The National Defense Authorization Act encourages the US secretary of defense to invite Taiwan’s navy to participate in the exercises in Hawaii The US Senate on Thursday last week passed the National Defense Authorization Act (NDAA) for Fiscal Year 2026, which strongly encourages the US secretary of defense to invite Taiwan’s naval forces to participate in the Rim of the Pacific (RIMPAC) exercise, as well as allocating military aid of US$1 billion for Taiwan. The bill, which authorizes appropriations for the military activities of the US Department of Defense, military construction and other purposes, passed with 77 votes in support and 20 against. While the NDAA authorizes about US$925 billion of defense spending, the Central News Agency yesterday reported that an aide of US
RSS