© 2010 sandler, travis & rosenberg, p.a. all rights reserved. s andler, t ravis & r...

© 2010 Sandler, Travis & Rosenberg, P.A.All rights reserved.

SANDLER, TRAVIS & ROSENBERG, P.A.SANDLER, TRAVIS & ROSENBERG, P.A.An International Trade and Business Practice

“A Washington DC Perspective: White House & Congressional Initiatives on US Trade Policy”

May, 13, 2010May, 13, 2010

Jennifer MulvenySenior Director, Trade and Legislative Affairs

The 2010 US Trade Agenda© 2010 Sandler, Travis & Rosenberg, P.A.All rights reserved.

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© 2010 Sandler, Travis & Rosenberg, P.A. All Rights Reserved.


• Increasing Exports in Five Years = Jobs

• National Export Initiative

• New Trade Deals• Enforcement• Doha, Asia and

Pending FTAs

The President’s Trade Agenda

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• 2001-2008 = 80% Increase in Exports– 8 FTAs, 14 countries

• 1% Rise in Exports = 1.5 million jobs

Double U.S. Exports

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OBJECTIVES

• Export Promotion Funding and Agencies Coordination

• Commercial Advocacy • Increase Government Focus on

Barriers to Trade and Market Access• Creation of Export Promotion Cabinet

– EO, March 11, 2010

National Export Initiative

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OTHER GOALS• Increase exports to Emerging Countries• Support Growth of Emerging Technologies• Increase Access to More Markets for

Companies Exporting to Only One Country• Enforce FTAs and Lower Trade Barriers• Give a Stronger Voice to SMEs in

Government’s Inter-Agency Process


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ADMINISTRATIVE ACTIONS

• Ex-Im funding increased from $4bn to $6bn– 20% Credit for SMEs

• 20% Budget Increase for Dept of Commerce

• $54M USDA Trade Promotion• ITC Hearings on Barriers to SMEs• USTR: New focus on SMEs


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TRADE FACILITATION: ARE PORTS READY?

• Bottled up Shipping and Transportation Lanes• Insufficient Containers• Freight Infrastructure lagging behind most developed

countries• Need for maximum use of information technology• Transparency and predictability of Customs actions • Standardization and simplification of the goods

declaration and supporting documents • Coordinated interventions with other border agencies;

partnerships between Customs and the trade.


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CONGRESS• Hearings:

– 4/29/10—SFC Hearing: “Doubling U.S. Exports, Focusing on Seaports”

– 4/28/10—SBC Hearing: “Impact of Small Business Trade Policy on Job Creation and Economic Growth

• Small Business Jobs Bill to be Unveiled– $10bn+ of incentives– Goal to pass by Memorial Day


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New Trade Deals—TPP

• Australia, Brunei Darussalam, Chile, New Zealand, Peru, Singapore, and Vietnam– Other countries?

• Congress Notification: Dec. 14, 2009• First round of negotiations: March 15-19

(Australia)• Second round of negotiations: June 14-18

(US)• No defined structured yet• Model for future FTAs?


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New Trade Deals: ACTA

• IPR Issues: Australia, Canada, EU, Japan, Korea, Mexico, Morocco, New Zealand, Singapore, Switzerland and the US

• Diverse interests: copyrights-trademark-IP

• Competing domestic industry interests

• Jan 26-29: Latest round of negotiations

• Transparency Controversy

We will protect American inventiveness and creativity with

all the tools of trade policy.Insufficient protection of

intellectual property rights undermines key U.S. comparative

advantages ininnovation and creativity, to the

detriment of American businesses and workers. We will address insufficient protection of

intellectual property rights by negotiating and enforcing

effective intellectual property protection in a manner

compatible with basic principles of the public welfare.

The President’s 2010 Trade Agenda


New Trade Deals: MTB

• Boost to U.S. manufacturers• Three year duty free for qualifying

products– No Domestic Production– Under $500k revenue loss

• Ways and Means Committee Introduced Legislation on December 15, 2009

• Two tranche solution• Republican “Earmarks Moratorium”


• Many export controls are Cold War relics• Numerous agencies with overlapping

controls – Commerce, State, OFAC, Energy, Defense

• Current Status– Administration and Congress currently

examining changes to export control laws and regulations to implement suggested reforms.

• Private Sector Supportive

Export Control Reform

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• Market Openness– National Trade Estimate– SPS and Technical Barriers to Trade

• Section 301—Intellectual Property• Section 1377—Telecommunications • WTO Dispute Resolution• FTA Dispute Resolution Body• Labor/Environment

Export Enforcement

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Import Enforcement

• Tainted Products/Food– CPSC co-located at CBP

targeting center

• Illegal Environmental Practices– Lacey Act (Gibson Guitars)

• Targeting Centers (CBP & CPSC, FDA…)

• IPR Violations• HTWG (Environment +

Labor in FTAs)• AD/CVD


• Mexico Trucking (NAFTA)• Brazil Cotton (WTO)• China CVD Claims Against U.S.

Products• Russia Ag Barriers• EU Ag Barriers

Enforcement and Retaliation

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Enforcement: U.S. – China Relations

• Sensitive Relationship• Strategic Economic Dialogue (SED) this month• Currency Manipulation• Investment Barriers• AD/CV Actions• 421 Tire Case in 2009• Apparel Safeguard Soon?

“For too long, the United States has pursued diplomacy at the expense of

American jobs and exports” – Senator Baucus (April 3, 2010)


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• Dec. 2009 Ministerial• Progress on Doha in 2010?

– “Stock-taking” March Meetings Postponed

• Monitoring and enforcement activities

• Congressional support – WTO Vote this Year

• Russia Accession?• Brazil Retaliation subdued

Doha: WTO Negotiations

The value of what the United States would give in market

opening, along with a reduction of U.S. agriculture support, is well-known and easily calculable. In

contrast, the value of new opportunities for our businesses, workers, farmers, and ranchers remains vague because of the

broad flexibilities available to key emerging markets, like China,India, and Brazil that are fast

growing economies and important markets of the future.

The President’s 2010 Trade Agenda


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Pending FTAs

• Korea: Seventh largest trading partner– Grains, animal feeds, fruit, vegetables, dairy products,

meats, seafood, processed foods and beverages, machinery, electronics, pharmaceutical, medical devices, services

• Colombia: One Way Trade Preferences; $1.1 billion more once fully implemented (ITC)– Meat, Grains, soybean, chemicals and plastics,

machinery and electronics, services

• Panama– Meat, grain, frozen potato products and certain

processed foods, motor vehicles, machinery


GET INVOLVED!

• Monitor Legislation

• Representation

• Advocacy

• Data analysis

• Policy Papers


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Thank you!

Jennifer MulvenySenior Director, Trade and Legislative Affairs Washington, D.C. Telephone: (202) 216-9307 [email protected]

© 2010 sandler, travis & rosenberg, p.a. all rights reserved. s andler, t ravis & r...

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