Blog

Every week, the USTR website explores a new trade topic, with background information and current trade data. This week Ambassador Kirk travels to Hangzhou, China along with Commerce Secretary Gary Locke and Secretary of Agriculture Tom Vilsack to meet with Chinese Vice-Premier Wang Qishan as part of the Joint Commission on Commerce and Trade (JCCT).

The United States and China have a large and dynamic trading relationship. Bilateral trade in goods totaled $408 billion in 2008, and China is now the United States' second largest trading partner. U.S. goods exports to China were $70 billion in 2008, up 330% since 2000 and U.S. goods imports from China were $338 billion in 2008, up 238% since 2000. Trade in services with China (exports and imports) totaled $23.0 billion in 2007 (latest data available); services exports were $14.2 billion and services imports were $8.8 billion. For the period January-to-August of 2009, U.S. goods exports to China are down 14.3% and goods imports from China are down 14.9%, as a result of the impact of the global economic downturn. Due to the large and robust relationship trading relationship the United States has with China, these talks represent an important opportunity to engage this vital trading partner at a senior level.

The U.S.-China JCCT was established in 1983 and is the main forum for addressing bilateral trade matters and promoting commercial opportunities between the United States and China. This 20th meeting of the JCCT comes at a critical juncture in America's relationship with China and represents an important opportunity for the United States to engage in dialogue at a senior level. In addition to the high-level annual plenary meeting, a large number of working groups under the JCCT meet throughout the year to bring U.S. and Chinese officials together to engage in detailed discussions of specific trade issues. The working groups will focus their attention to topics ranging from Intellectual Property Rights (IPR), the Insurance Dialogue, and the Information Industry Working Group.

The three U.S. cabinet members look forward to discussions with Vice Premier Wang Qishan and other Chinese officials on a wide range of important bilateral trade issues, including intellectual property rights enforcement, agriculture, standards, government procurement and other issues. The United States will seek to make concrete progress on as many issues as possible. The participants will also discuss a number of cooperative initiatives of interest to both sides. The JCCT also gives the United States and China a venue to consider the breadth of our trade relationship and identify steps that each side can take to ensure that it is fair, sustainable, and mutually beneficial going forward.

Every week, the USTR website explores a new trade topic, with background information and current trade data. This week's trade topic focuses on the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II).

Late last week, the White House announced that Haiti will continue to be eligible for the benefits of the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II), which allows duty-free access to the U.S. market for certain Haitian-made apparel and other articles, with the goals of fostering stability and economic development in Haiti.

The HOPE II Act was enacted in 2008 as a continuation and expansion of the original HOPE Act of 2006.  These agreements acted as extensions of the benefits provided by the Caribbean Basin Initiative trade programs.  HOPE II provides for duty-free access for up to 70 million square meter equivalents (SME) of knit apparel (with some t-shirt and sweatshirt exclusions) and 70 million SMEs of woven apparel without regard to the country of origin of the fabric or components, as long as the apparel is wholly assembled or knit-to-shape in Haiti.  HOPE II provides for duty-free treatment of knit or woven apparel under a "three for one" earned import allowance program:  for every three SMEs of qualifying fabric (sourced from the United States or certain trade partner countries) shipped to Haiti for production of apparel, qualifying apparel producers may export duty-free from Haiti or the Dominican Republic to the United States one SME of apparel wholly-formed or knit-to-shape in Haiti regardless of the source of the fabric. HOPE II also provides for duty-free treatment for certain brassieres, luggage, headgear, and certain sleepwear.  HOPE II allows these Haitian goods to enter the United States duty-free if shipped either directly from Haiti or through the Dominican Republic.

Under the 2008 legislation, to receive the benefits Haiti was required to establish an independent labor ombudsman's office and a program operated by the International Labor Organization to assess compliance with core labor rights and Haiti's labor laws in the country's apparel factories.  Haiti also had to agree to require Haitian producers that wish to be eligible for duty-free treatment under HOPE II to participate in the ILO program and to develop a system to ensure such participation.

Haiti is currently our 90^th largest goods trading partner with $1.4 billion in total (two way) goods trade during 2008.  Goods exports totaled $944 million; Goods imports totaled $450 million.  The U.S. goods trade surplus with Haiti was $494 million in 2008.

This morning Ambassador Ron Kirk opened the 2009 meeting of the North America Free Trade Agreement (NAFTA) Free Trade Commission.

During the meeting, Ambassador Kirk, Canada's Trade Minister Stockwell Day and Mexico 's Secretary of the Economy Gerardo Ruiz Mateos discussed ways to ensure that the benefits of our trilateral trade and economic relationship are widely shared and sustainable.

NAFTA entered into force in 1994. Since then trade among the NAFTA countries has more than tripled from $297 billion to $941 billion. Each day the NAFTA countries conduct nearly $2.6 billion in trilateral trade.

A group of 10 USTR staffers spent the morning at Martha's Table volunteering to help at-risk individuals in the Washington, DC area. USTR encourages all employees to volunteer, and seeks to bring workers together to spend time helping local D.C. residents.

Martha's Table's mission is to help at-risk children, youth, families and individuals in our community improve their lives by providing educational programs, food, clothing, and enrichment opportunities. Today, USTR staffers spent their time working in the kitchen, sorting clothes at the organizations' shop, and helping to clean food preparation areas.

President Obama has called on Americans to build a new foundation for our country through service to their communities. Today, Ambassador Ron Kirk participated in a panel discussion in College Station, Texas, on "The Future of Service." USTR urges all visitors to our website to look for service opportunities and share their stories of volunteer service at www.serve.gov.