US trade policy has scored some notable breakthroughs around the world but serious headaches remain, not least the "epidemic" of Chinese faked goods, an annual government report said yesterday.
The 672-page report by the office of the US Trade Representative (USTR) said the US was determined to pull down obstacles to its exports.
"Eliminating trade barriers so that American workers, farmers, and businesses can have increased access overseas for our goods and services is one of USTR's core missions," said acting Trade Representative Peter Allgeier.
"Consultations, negotiations and litigation are among the tools at our disposal, and we are using them aggressively to make sure that Americans are treated fairly."
The National Trade Estimate Report on Foreign Trade Barriers lists familiar bugbears of US trade policy, including the obstacles said to be put up by the US' biggest trading partner, the EU.
To the fore of Washington's complaints are the state subsidies allegedly extended to European aircraft maker Airbus that have, the report complains, allowed the firm to overtake US giant Boeing.
Barriers
Not for the first time, EU restrictions on US beef, poultry and genetically modified food are highlighted in the report. So are non-trade barriers such as varying safety and customs standards in use by different EU member states.
Overall, however, the report summarizes the transatlantic trade relationship as being enormously beneficial to both sides.
The picture on US trade with China is different. The report talks of a "significant increase in bilateral trade friction."
In particular the finger is pointed at "epidemic levels of counterfeiting and piracy in China, which cause serious economic harm to US businesses in virtually every sector of the economy."
Special review
The report noted the US government is conducting an exceptional review of China's protection of intellectual property rights, which may result in action at the WTO.
Asked when the special review would end, a US trade official said there was a "fairly good chance" it would be wrapped into an annual review of US trade with China due out at the end of this month.
Among other complaints highlighted in the document are Japan's refusal to reopen its beef market to US imports following the discovery of one cow infected with "mad cow" disease in the US in late 2003.
"Although the United States has addressed all science and safety concerns about US beef, Japan still has not permitted the resumption of trade in this roughly US$1.7 billion annual export market," the report said.
It also railed against Mexico's imposition of a 20 percent tax on beverages and syrups made with sweeteners other than cane sugar. The US has filed suit at the WTO over the restriction, which it says discriminates against US producers of a corn-based sweetener that directly competes with sugar in many drinks.
But there also several pluses on which US trade officials congratulate themselves.
Unlike Japan, Mexico has now reopened its markets to US beef following the "mad cow" scare, the report said. The US, after filing its first WTO action against China, has won agreement with Beijing for semiconductor manufacturers from the US and elsewhere not to be penalized with a special value-added tax.
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