The openness and transparency of the U.S.

trade regime have been key contributing factors to the

efficiency that characterizes the U.S. economy as a whole. the United States has taken further steps to
liberalize its trade regime, although mostly on a preferential basis. In the face of the economic
uncertainty prevalent in early 2008, U.S. welfare would be best promoted by exploiting the adjustment
capacity of the U.S. economy and continuing to reduce barriers to market access and other distorting
measures, including those that result from high levels of assistance in agriculture and energy. Moreover,
ongoing efforts to incorporate additional security considerations into U.S. trade and investment policies
should be pursued within the framework of the risk-based approach that seems to have served the United
States well. Further reforms undertaken on a MFN basis would also lessen distortions in global markets
and strengthen the multilateral trading system, as the United States is both the world's largest single
economy and trader.

(1) TRADE AND INVESTMENT POLICY FRAMEWORK

 The United States considers that the expansion of international trade is vital to its national
security and economic growth. Support for the multilateral trading system is at the core of U.S.
trade policy, and the Administration remains committed to a comprehensive Doha agreement. In
this context, the United States has made numerous proposals in a wide range of negotiating areas.
It has fulfilled its notification obligations, except for preferential rules of origin, agricultural tariff
quotas, and government procurement statistics. The United States has made progress in
implementing several WTO rulings calling for changes to U.S. legislation, but rulings relating to
intellectual property rights and anti-dumping have not yet been fully implemented.

 While the United States considers that a comprehensive multilateral agreement offers the best
chance to create expanded trade and development opportunities around the world, it believes that
bilateral and regional trade liberalization can also provide significant benefits. Consistent with
this, the United States has continued to enter into free-trade agreements (FTAs). In early 2008, it
had FTAs with 14 countries, up from seven during its last Review, and three at the start of the
current Administration in early 2001; FTAs with another six countries had been completed but
were not yet in force. The United States grants unilateral preferences to developing countries
under several schemes, which may be conditional on adherence to criteria that the U.S. authorities
consider promote sound policies and allow beneficiaries to expand trade and investment

 Trade promotion authority, which the Administration views as an important tool for achieving
U.S. trade objectives, expired on 1 July 2007. In May 2007, the Administration and
congressional leaders agreed to a trade policy "template", which has been described as providing
a "clear and reasonable path forward" for congressional consideration of pending FTAs, and as
"open[ing] the way for bipartisan work on Trade Promotion Authority". The template contains
provisions on labour, environment, intellectual property, investment, government procurement,
and port security.

(1) SECTORAL POLICIES

 The United States is one of the world's largest producers, exporters, and importers of agricultural
products. As measured by the OECD, overall support to agriculture, including through border
measures and government payments, accounted for 11% of gross farm receipts in 2006, down
five percentage points from 2004. This decline largely reflects higher commodity prices. Certain
commodities, including sugar and milk, continue to receive high levels of assistance. Moreover,
payments under some commodity programmes (e.g., marketing assistance loans) provide
incentives for resource use that may be inconsistent with market signals and may affect trade
when supported output finds its way into world markets. Certain aspects of domestic support
 programmes were challenged under multilateral rules during the period under review. The
expiration of the 2002 Farm Act, and the current environment of high commodity prices, offers a
favourable juncture to introduce policy changes aimed at further improving the market orientation
of the agriculture sector to the benefit of both consumers and taxpayers.

 The United States is a major producer and consumer of minerals and energy U.S. energy policy
places emphasis on domestic energy production and the provision of tax and other incentives for
the supply of alternative and renewable fuels. Assistance for domestic ethanol production
includes tax incentives and import duties; these measures could have a significant impact on
global production patterns. The Energy Policy Act of 2005 contains provisions to address
shortcomings in the regulatory framework governing electricity markets. In computing fuel
economy standards, NAFTA-produced automobiles are treated differently from other vehicles.

 The United States is the world's leading producer of manufactured goods. Multifactor
productivity and output in the sector have expanded in absolute terms but the sector's share in
total U.S. value added and employment has declined. Manufacturing tariffs are generally low,
but high tariffs have sheltered a few industries, such as textiles, clothing, and footwear and
leather, from international competition.

 The U.S. telecommunications market, the world's largest by revenue, is open to foreign
participation and is highly competitive. During the period under review, certain unbundling
requirements were eliminated to level the regulatory playing field between broadband internet
access providers. A comprehensive intercarrier compensation reform plan is under consideration.
The United States maintains several media ownership restrictions, with the objective of
promoting competition, diversity, and "localism" in media production. The relaxation of one of
these restrictions was approved in late 2007, and rules have been adopted to facilitate entry into
the video services market.

 During the period under review, there have been no major changes in U.S. legislation with respect
to financial services. However, the sector has been considerably affected by the sub-prime
mortgage turmoil, suggesting the need for improvements in financial supervision. In this respect,
changes to existing regulations are under consideration to restrict certain mortgage practices, and
to consolidate and strengthen supervision.

 Initial entry into the U.S. market through the establishment or acquisition of a nationally
chartered bank subsidiary by a foreign person is permitted in all states. U.S. bank subsidiaries of
foreign banks are granted national treatment. However, foreign-owned banks, unlike domestic
banks, are required to establish an insured banking subsidiary to accept or maintain domestic
retail deposits of less than US$100,000. Branches and agencies of foreign banks have similar
powers to banks but agencies may not accept deposits from U.S. citizens or residents. At the
state level, there are limitations to the acquisition or establishment of a state-chartered bank, and
for the establishment of branches or agencies.

 Regulation of insurance services is primarily at the state level. Insurance companies, agents, and
brokers must be licensed under the law of the State in which the risk they intend to insure is
located, but U.S. states have taken steps to facilitate multi-state operations. Foreigners may
acquire an insurance company licensed in all states, incorporate subsidiaries in 47 states, or
operate as branches in 36 states and the District of Columbia. A federal tax on insurance policies
covering U.S. risks is imposed at a rate of 1% of gross premiums on all reinsurance but at 4% of
gross premiums with respect to non-life insurance when the insurer is not subject to U.S. net
income tax on the premiums.
  The profitability of U.S. airlines has improved, and by end 2007 all major U.S. airlines had
emerged form bankruptcy protection. Foreign ownership in U.S. carriers is limited by statute to
25% of the voting shares. The provision of domestic air services is permitted only by U.S.
carriers. The Fly America Act generally requires government-financed transportation to be on
U.S.-flag air carriers, but foreign participation is possible under international agreements. The
United States has bilateral aviation agreements with 97 countries, of which 79 are open skies
agreements. The U.S.-EU Air Transport Agreement, provisionally applied since 30 March 2008,
introduced a number of significant liberalization measures. All public-use U.S. airports with
commercial services are currently owned by state or local governments. A law was passed in
1996 establishing an Airport Privatization Pilot Program; one airport participated but
subsequently returned to public ownership.

(2) DEVELOPMENTS ON TRADE AND INVESTMENT

(i) Merchandise trade

1. The depreciation of the U.S. dollar, coupled with strong growth in the rest of the world, has had a
positive impact on U.S. exports during the period under review. Total exports increased by almost 15%
in 2006 while imports grew by about 11%. 1 Merchandise exports (including re-exports) totaled US$1.04
trillion in 2006 and imports reached US$1.92 trillion (Tables AI.1 and AI.2). Manufactures represented
the main export category, with some 80% of the total in 2006; machinery and transport equipment, and
computers and electronic products were the main exported manufactures, but their share declined over
2004-06. At the same time, the share of primary products grew to 15.8% in 2006, due mainly to the
growing importance of mining.

2. Manufactures also represented the main import category, with just over 70% of the total in 2006.
Among manufactures, strongest import growth was in iron and steel, but the main product groups were
machinery and transport equipment, which accounted for 37.7% of imports. Overall, imports of primary
products expanded significantly faster than imports of manufactures.

3. U.S. trade is geographically diversified. NAFTA partners continued to account for the largest
share of exports in 2006, with 22.2% going to Canada and 12.9% to Mexico (Table AI.3). Brazil and
Venezuela were the main non-NAFTA partners in the Americas. The European Union is the second
largest export market for U.S. products; its share stayed at the same level over 2005-06. Among Asian
partners, exports to China showed to strong growth both in value terms and percentages, to reach 5.3% of
the total in 2006. Japan remained the main Asian market, although its share declined continuously
between 2000 and 2006.

4. Canada remained the largest U.S. supplier, accounting for 16% of U.S. imports in 2006, although
its share declined by one percentage point between 2004 and 2006 (Table AI.4). However, imports from
China expanded strongly over 2004-06 (from 13.8% to 15.9% of total imports), almost equaling Canada's
share as the U.S. main supplier.

(ii) Trade in services

1. In 2006, the surplus in cross-border services trade amounted to US$96.6 billion; the surplus
increased in both 2005 and 2006, as exports grew faster than imports. The largest surpluses are in
business, professional, and technical services, and in royalties and licence fees, which represent receipts
and payments for intellectual property rights, followed closely by financial services, other private
services, and education; the largest deficit is in insurance (Table AI.5). The fastest growing exports were
1
in telecommunications services, financial services, insurance services, and business and professional
services; transport exports, consisting of travel and passenger fares, also expanded The main trading
partners for U.S. services exports in 2006 were the United Kingdom (11.8% of the total), Japan (10.2%),
Canada (9.7%), Mexico (5.6%), and Germany (5.1%). The main partners for imports were the United
Kingdom (12%), Japan (7.8%), Canada (7.6%), Germany (6.8%), and Bermuda (4.9%). 2

2. Services sold abroad by U.S. companies through their majority-owned foreign affiliates to
foreigners reached US$528.5 billion in 2005, the most recent year for which data were available. 3
Affiliates in Europe accounted for some 52% of the total, followed by the Asia Pacific region (24%), and
Latin America (11%). The value of services sold by foreign multinationals through their U.S.  majority-
owned affiliates to U.S. persons was US$389 billion. In 2005, sales of services by U.S.  multinationals
through their majority-owned affiliates increased by 9.4% over the previous year, while foreign
multinationals' sales of services through their majority-owned U.S. affiliates to U.S.  persons rose by
1.9%.

(iii) Foreign direct investment

1. The United States' foreign direct investment position increased to US$1.79 trillion in 2006, in line
with the 11% average annual growth in 1994-2004.4 Foreign direct investment inflows for 2006 totaled
US$180.6 billion5. Net equity capital inflows were the largest contributor to this flow, with a surge of
73% in nominal terms, after declining for five consecutive years. Reinvested earnings, which remained
above historical norms for a third consecutive year, contributed to the increase in the inward position;
valuation adjustments and inter-company debt investment made smaller contributions.
The United Kingdom remained the largest source, with an investment position of US$303.2 billion, or
17% of the total, followed by Japan with US$211 billion (12%), and Germany and the Netherlands
accounting for 11% each. The largest equity capital increases by foreign investors in 2006 were in
finance and insurance, chemicals, computers and electronic products, manufacturing, and machinery
manufacturing.

2. U.S. direct investment abroad increased by 12% in 2006 to US$2.38 trillion; this was above the
(less than 1%) increase in 2005, and in line with the average annual growth rate of 13% in 1994-2004.
Foreign direct investment outflows for 2006 totaled US$235.4 billion. Reinvested earnings were the
largest contributor to the increase in 2006; net equity capital investment also contributed to the increase
but was the smallest recorded since 1996. 6 Three host countries: the United Kingdom (U$364.1 billion,
or 15% of the total), Canada (US$246.5 billion or 10%), and the Netherlands (US$215.7 billion, or 9%),
accounted for over a third of the total investment position. Equity capital increases for the acquisition or
establishment of new affiliates in 2006 were largest in the United Kingdom, the Netherlands, and
Luxembourg. Over two-thirds of capital contributions to existing foreign affiliates were to affiliates in
Europe. Among industries, the largest contributions were to affiliates in finance and insurance. The
largest stocks of FDI in the United States are owned by United Kingdom, Japan, Dutch, and German
interests. The highest stocks of U.S. FDI abroad continue to be in the United Kingdom and Canada
(Table AI.6).

2
3
4

5
6
TRADE POLICIES AND PRACTICES BY MEASURE

 The united states accords mfn tariff treatment to all wto members except cuba. all except two
tariff lines are bound, generally at low rates, which lends predictability to the u.s. trade regime.
the average applied mfn tariff was 4.8% in 2007, virtually the same as in 2004 (4.9%). the
applied mfn rate for agriculture (wto definition) fell from 9.7% in 2004 to 8.9% in 2007,
reflecting the rise in commodity prices and the resulting decline in the ad valorem equivalent
rates. at 4%, the 2007 average applied mfn rate for non-agricultural products remained
unchanged. around 2% of all lines are subject to tariff quotas; high out-of-quota tariffs are one
of the main forms of import protection for certain agricultural products. tariff preferences may be
granted by the united states either unilaterally or in the context of free-trade agreements.
 Security considerations have continued to drive significant changes relating to customs
procedures. The SAFE Port Act of 2006 codified and expanded existing cargo and supply-chain
security programmes, and established additional filing requirements for importers. Under the
Act, from mid 2012, all containers must be scanned prior to being loaded on a U.S.-bound vessel.
However, the Act recognizes that this requirement could have a significant impact on trade, and
offers the possibility of delaying the implementation for specific ports.
 Anti-dumping (AD) remains a key trade policy instrument for the United States. At end 2007,
the United States maintained some 232 AD measures in force, affecting imports from 39 trading
partners. During 2005-07, the United States initiated some 33 investigations and applied
19 provisional measures, but imposed only 11 final duties. Applied AD duties can be substantial,
up to 280%, and thus affect significantly U.S. domestic prices. As most AD measures are
imposed on intermediate goods like steel and chemical products, they increase costs for
downstream producers and consumers. Although temporary, some 40% of the AD measures in
force have in practice granted protection for over 10 years. The percentage of U.S. imports
directly affected by AD measures is less than 0.1% and the number of AD orders issued since
2005 has been lower than in earlier years. Nevertheless, it would be important to ensure that AD
measures do not retard adjustment to changing conditions in international markets.
 At end 2007, the United States maintained no safeguard measures but 31 countervailing (CV)
orders were in place involving 13 trading partners. Although the Continued Dumping and
Subsidy Offset Act of 2000 (the Byrd Amendment) was repealed in 2005, AD and CV duties
assessed before October 2007 continue to be distributed to U.S. producers who supported the
petition for investigation. Total disbursements were estimated at approximately US$1.9 billion
from the entry in force of the Byrd Amendment to end 2007.
 Two WTO Members, Cuba and Myanmar, are subject to economic sanctions. The United  States
maintains export restrictions and controls for national security or foreign policy purposes, or to
address shortages of scare materials. U.S. entities are required to apply for an export licence in
certain cases when they intend to transfer controlled technologies to foreign nationals in the
United States.
 The United States is an important producer and exporter of goods and services that embody
knowledge and other intellectual developments. The United States seeks to promote increased
IPR protection and enforcement through a variety of mechanisms, including FTAs, bilateral
intellectual property agreements and bilateral investment treaties. The United States also pursues
high standards of IP protection through its engagement in WTO activities and negotiations.
Tariffs

MFN and other trading partners

 The general policy of the United States, embodied in Section 126 of the Trade Act of 1974, is to
grant MFN tariff treatment to all its trading partners. 7 The United States may adopt laws that
deny MFN tariff treatment to particular countries. All WTO Members except Cuba receive MFN
treatment. In addition, the United States does not grant MFN treatment to the Democratic
People's Republic of Korea. Imports from these two countries are subject to the "statutory rate",
which is the rate imposed by the Smoot-Hawley Tariff Act of 1930, as amended. The statutory
rate is shown in column 2 of the Harmonized Tariff Schedule. Permanent MFN tariff treatment
was extended to Ukraine in March 2006 and to Viet Nam in December 2006. 8
 The United States accords MFN tariff treatment on a temporary and conditional basis to:
Azerbaijan, Belarus, Kazakhstan, Moldova, Russia, Tajikistan, Turkmenistan, and Uzbekistan, all
of which have entered into bilateral commercial agreements with the United States.9 These
countries are denied permanent, unconditional MFN tariff treatment on the basis of Title IV of
the Trade Act of 1974, which requires that the U.S. President deny MFN tariff treatment to any
non-market economy that was ineligible for such treatment on 3 January 1975 (when the
legislation was enacted), and that denies or seriously restricts the rights of its citizens to emigrate.
This provision is known as the Jackson-Vanik amendment.

Applied MFN tariffs

 The United States levies customs duties on the basis of the f.o.b. value of imports at the point of
export.
 The Harmonized Tariff Schedule of the United States was enacted by the Omnibus Trade and
Competitiveness Act of 1988 and became effective in January 1989. It is based on the
Harmonized Commodity Description and Coding System (HS). 10 The 2008 Harmonized Tariff
Schedule reflects the fourth amendment to the HS (HS 2007). The following analysis is based on
the 2007 Harmonized Tariff Schedule of the United States. Although the 2008 Harmonized
Tariff Schedule was available at the time of preparing this report, ad valorem equivalents of non-
ad valorem tariff rates were available only for 2007.

Anti-dumping and countervailing measures

 The United States considers that effective rules on anti-dumping and subsidies are necessary to
address injurious dumped and subsidized imports, and can also contribute toward sustaining support
for further trade liberalization. In this respect, it has noted that, "maintaining confidence in the
enforcement of agreed rules and support for further trade liberalization, addressing the harmful effects
of trade distorting practices, and eliminating or reducing those practices to the extent possible are
essential to the long term viability of the WTO and the economic prosperity of its Members"

 At end 2007 some 51% of all AD measures were being applied on iron and steel products; 14% on
chemicals and pharmaceuticals; and 10% on agricultural and forestry products (Table III.4).

7
8

9
10
Table III.4

Anti-dumping measures by country and product, 2002-07

Year 2002 2003 2004 2005 2006 2007

Trading partner /region 266 278 273 268 256 232

Argentina 6 6 6 6 5 3
Brazil 14 15 14 14 13 10
Canada 8 9 9 6 3 2
China 43 52 55 57 58 62
EC countries (27) 64 64 57 53 50 36
India 10 10 12 13 14 14
Indonesia 6 6 5 5 6 6
Japan 30 32 29 27 23 21
Korea Rep. of 18 19 19 17 16 14
Mexico 8 8 9 10 9 8
Russia 2 3 3 4 4 8
South Africa 3 4 4 4 3 3
Chinese Taipei 17 17 17 16 16 15
Thailand 5 5 7 8 8 7
Turkey 4 4 3 3 3 3
Ukraine 6 6 6 6 6 7
Other America 5 4 4 5 5 3
Other Asia (including Australia) 12 9 10 10 10 7
Other Europe 5 5 4 4 4 3

 The level of AD duties applied during the period under review varied widely. The definitive duties
applied during 1 July 2005-31 December 2007 range from a low of 3.91% to a high of 280.57%;
provisional duties applied over the same period range from 3% to 280.57%.

(b) Countervailing duties

 Between two and three CVD investigations were initiated per year during the period under review
(Table III.5). In contrast to 12 orders reported in the previous Review of the United States, two final
CVD orders were issued during the period. Three investigations were terminated with an ITA or
USITC negative determination.11

 Overall, there were 31 CVD orders in place at end December 2007, down from 57 in 2004, involving
13 trading partners.12 Some 60% of the CVD orders in place related to steel products. 13

Table III.5

Countervailing duty investigations and measures imposed, 1980-07

1980-90 1991-01 2002 2003 2004 2005 2006 2007

Investigation initiations 240 89 4 5 3 2 3 5

Preliminary injury determinations, 210 71 3 2 3 2 3 3

affirmative

11

12
13
 Preliminary countervailing duty .. .. 3 2 3 2 3 3
determination, affirmative, of which
provisional measure applied .. .. 3 2 3 2 3 3

Final countervailing duty determinations 176 71 3 2 1 2 0 0

Final injury determinations, of which .. .. 2 2 0 2 0 0

duty order imposed 107 44 2 2 0 2 0 0

Revocations 83 93 0 0 2 4 11 7

Safeguards

 U.S. legislation on global safeguards is contained in Sections 201-204 of the U.S. Trade Act of 1974,
as amended by the URAA. Under Section 201 of the Act, the USITC determines whether an article is
being imported in such increased quantities that it is a substantial cause of serious injury, or threat
thereof, to the U.S. industry producing a like or directly competitive article. If the USITC makes an
affirmative determination, it recommends to the President relief that would address the serious injury
or threat thereof, and facilitate the adjustment of the domestic industry to import competition. The
President makes the final decision whether to provide relief and the form and amount of relief, within
60 days of receipt of an USITC report.

 Under U.S. law, safeguard measures may include tariffs, quantitative restrictions, or tariff quotas,
import licensing and other measures as listed in Section 203 of the Act. NAFTA partners are
excluded from the application of safeguard measures, unless they individually account for a
substantial share of total imports, and it is shown that they make an important contribution to serious
injury.

Quantitative restrictions and licensing

 The United States bans imports from certain countries for foreign policy purposes. Most imports
from Cuba, the Democratic People's Republic of Korea, Iran, Myanmar, and certain areas of Sudan
are subject to bans or approval requirements. 14 The Office of Foreign Assets Control of the
Department of the Treasury is responsible for administering these measures.

 Most other U.S. quantitative restrictions and controls on imports are designed to safeguard consumer
health, or protect public morals or the environment. These restrictions and controls are implemented
through licensing requirements for fish and wildlife, plants, animals, and plant and animal products,
narcotic drugs, alcoholic beverages, tobacco, firearms, explosives, and nuclear facilities, and are
described in the latest U.S. reply to the questionnaire on import licensing procedures. 15

 Imports of basic steel mill products are subject to automatic licensing, irrespective of their origin.

14
15
 The importation of natural gas or liquefied natural gas (LNG) is authorized unless it is determined not
to be in the public interest

 The Marine Mammal Protection Act (MMPA) prohibits the importation of marine mammals and their
parts or products into the United States

 The United States also prohibits imports of shrimp and shrimp products harvested with technology
that may adversely affect sea turtle species

 Imports of certain textile and clothing products from China are subject to "agreed levels"

 Licences are required to import agricultural products at the in-quota tariff rate

MEASURES DIRECTLY AFFECTING EXPORTS

 A Shipper's Export Declaration (SED) is used to keep a record of exports and act as a source
document for official U.S. export statistics SEDs must be prepared, regardless of value, for all
shipments requiring an export licence or destined for countries restricted by the Export
Administration Regulations. SED, are prepared by exporters or their agent and delivered to the
exporting carrier, who is required to present it to the CBP at the port of export.

 The number of documents required for exporting varies according to the product and destination
Transactions involving products subject to export restrictions and controls require approval in the
form of licences from the U.S. Government

Export restrictions and controls

 The United States maintains export restrictions and controls for national security or foreign policy
purposes, or to address shortages of scarce materials. Export controls can be based on U.S. domestic
legislation, policy decisions, United Nations resolutions or on U.S. participation in four non-binding
export control regimes: the Wassenaar Arrangement, which deals with controls of conventional arms
and dual-use exports, the Missile Technology Control Regime (MTCR), the Nuclear Suppliers Group
(NSG), and the Australia Group (AG, chemical and biological non-proliferation). The United States
participates in the Chemical Weapons Convention (CWC). Export controls are implemented through
a licensing system; they also cover re-exports.

 Export controls for nuclear materials, facilities, and equipment used for civil purposes are regulated
by the Atomic Energy Act of 1954, as amended (AEA), and administered by the U.S. Nuclear
Regulatory Commission (NRC).
 The Bureau of Industry and Security (BIS) in the USDOC is responsible for formulating and
implementing export control policy on dual-use items (items with both commercial and possible
military use), software, and technology Items that have dual uses are listed on the Commerce Control
List (CCL) and are subject to general export prohibitions, unless allowed by an export licence or
other authorization, which is dependent upon the item classification, the destination, the end-user, and
the end-use.16

 A licence is required for exports or re-exports to Cuba of all commodities, technology, and software
subject to the EAR, with a few exceptions. The BIS generally denies applications, although
applications for certain products are reviewed on a case-by-case basis. In May 2006, the BIS
amended the EAR clarifying the application of License Exception Baggage (BAG) for Cuba, revised
in June 2004

 The Nuclear Regulatory Commission (NRC) is responsible for licensing exports of nuclear materials,
facilities, and equipment used for civil purposes, pursuant to the Atomic Energy Act of 1954, as
amended.

Duty drawback, tax exemptions, and other assistance

 The United States maintains a duty drawback programme. Customs duties and certain internal taxes
and fees resulting from importation are refunded following the export of the imported product or of
the article manufactured from the imported product. 17 The statutory definition of duties, taxes, and
fees subject to drawback includes customs duties, marking duties, and internal revenue taxes "which
attach upon importation.

Promotion and marketing assistance

 The Trade Promotion Coordinating Committee (TPCC) coordinates the export promotion activities of
19 federal agencies.18 TPCC members allocated around US$1.5 billion to promotion activities in
fiscal year 2006.19 The Department of Agriculture, the Department of Commerce, and the State
Department accounted for almost 85% of the total.

 The TPCC must submit a national export strategy to Congress each year. It also publishes the Export
Programs Guide, which describes some 100 export promotion programmes maintained by its
members.20 The International Trade Administration of the Department of Commerce manages
Export.gov, an online access point to TPCC members' information on export promotion.

 U.S. States also maintain general programmes to promote exports. The State International
Development Organizations seeks to support the activities of trade promotion agencies in 39 States

Section 301 and related actions

 Sections 301-309 of the Trade Act of 1974 (commonly known as Section 301) provide the United
States with the authority to enforce trade agreements, resolve trade disputes and open foreign markets
to U.S. goods and services. Section 301 is implemented by the USTR to investigate foreign trade
practices that are considered to affect U.S. exports of goods and services or impair U.S. rights under
16
.
17
18

19
20
 international trade agreements. Under Section 301, the United States may impose trade sanctions on
foreign countries that either violate such agreements or maintain such practices.

Trade-related intellectual property rights

 The United States is a member of the World Intellectual Property Organization (WIPO), and
participates in a large number of international conventions and treaties related to IPRs

 The United States seeks to promote increased IPR protection and enforcement through a variety of
mechanisms. The United States has addressed IPR subject matter in the context of bilateral
intellectual property agreements and memoranda of understanding, bilateral investment treaties, and
trade and investment framework agreements. IPR issues have also been included in U.S. free-trade
agreements in force or pending approval or implementation. 21 The United States pursues high
standards of IP protection through its engagement with countries seeking accession to the WTO.

 The United States is an important producer and exporter of goods and services that embody
knowledge and other intellectual developments. In this respect, IP has been recognized in Congress
as the backbone of U.S. economic competitiveness and the only sector where the United States has a
trade surplus with every nation in the world. 22 It has also been noted that over 50% of U.S. exports
depend on some form of IP, and that IP assets today represent more than one third of the value of
U.S.-based corporations and over 17% of GDP. The United States traditionally posts a balance-of-
payments surplus in IP-related trade, as measured by royalties and licence fees. In 2006, net receipts
were US$36 billion and gross receipts US$62.4 billion.

 Table III.8
Summary of intellectual property protection in the United States corresponding to TRIPS obligations, 2008

Form Main legislation Coverage Duration

Copyright and Copyright Law, Title 17 of the U.S. Authors' rights in the artistic, literary and Life of author plus 70 years for
related rights Code scientific domains; to enjoy copyright works created on or after
protection a work must be an original 1 January 1978.
creation Anonymous works,
pseudonymous works, and
works made for hire protected
for 95 years after publication
or 120 years after creation,
whichever is the shortest
Geographical The Lanham Act of 1946, as amended Protection against misuse of geographic Unlimited
indications (15 U.S.C. 1051 et seq), and Federal signs and names of viticultural significance
Alcohol Administration Act of 1935
Industrial Patent Law of the United States, as The ornamental design of a product is 14 years from date of grant
designs incorporated in Title 35 of the U.S. entitled to the protection afforded to
Code designs, provided it is new
Patents Patent Law of the United States, as Any inventions that are new, useful, and 20 years from filing date
incorporated in Title 35 of the U.S. non-obvious. Apply to process, machine,
Code manufacture or composition of matter
Plant variety Plant Variety Protection Act New plant varieties: not previously sold 20 years from the date of issue
protection Amendments of 1994 (7 U.S.C. 2321 for purposes of exploitation of the variety, of the certificate in the United
et seq.) in the United States, more than 1 year States
prior to the date of filing; or in any area

21
.
22
 Form Main legislation Coverage Duration
outside of the United States more than 4
years prior to the date of filing, or, in the
case of a tree or vine, more than 6 years
prior to the date of filing
Topography Semiconductor Chip Protection Act of Topography of microelectronic 10 years from filing date (or, if
of integrated 1984 semiconductor products provided it is earlier, from first use)
circuits original (the result of its creator's own
intellectual effort) and is not staple,
commonplace or familiar in the industry
at the time of its creation
Trade marks The Lanham Act of 1946, as amended Any sign used to identify and distinguish 10 years from registration
(15 U.S.C. 1051 et seq) goods or services from one enterprise date; renewable indefinitely
from those of another enterprise as long as the trade mark is in
use in commerce that is
lawfully regulated by Congress
Trade secrets Economic Espionage Act of 1996 and Any information, including a formula, Indefinite
state laws pattern, compilation, program device,
method, technique, or process, not
generally known to the relevant portion
of the public, that provides an economic
benefit to its holder, and is the subject of
reasonable efforts to maintain its secrecy

 The United States considers that IP and innovation are of critical importance to the enhanced
productivity and growth of the U.S. economy23, and that IPRs can facilitate the commercialization of
inventions and encourage public disclosure. 24 In its view, the ability of innovative industries to
continue to develop new products depends largely on a strong and effective IP system and the
capacity to market new products effectively during the period when exclusive IPRs exist. 25 One
rationale advanced for advocating IPR protection is that IP encourages innovation. In the U.S.

Patents

 Patents are granted by the United States Patent and Trademark Office (USPTO) using the first-to-
invent rule; the United States is the only WTO Member to use this rule.

 Under its 21st Century Strategic Plan, a five-year plan devised in 2002, the USPTO has continued to
promote the electronic processing and filing of patent applications and streamline the patent
application process. In 2006, the USPTO implemented the Internet-based Electronic Filing System-
Web (EFS-Web), to allow electronic patent application and document submission. 26 The USPTO also
issued new procedures for accelerated examination effective 25 August 2006. 27 To improve patent
23

24

25

26

27
 quality, the USPTO issued rule changes in October 2007 which, when implemented, will require
applicants to identify with more specificity the claimed invention to be examined. The USPTO also
published Examination Guidelines to help determinations regarding the obviousness of claimed
inventions.

 The Stop Counterfeiting in Manufactured Goods Act of 2006 (P.L. 109-181) amended the federal
criminal code to revise provisions prohibiting the trafficking in counterfeit goods and services to
include trafficking in labels or similar packaging of any type or nature bearing a counterfeit mark and
that are intended to be used on or in connection with the goods or services for which the genuine
mark is registered The Act subjects to forfeiture any article that bears or consists of a counterfeit
mark and any property used to violate the prohibition against counterfeit marks.

TRADE POLICIES BY SECTOR

AGRICULTURE

 The United States is among the world's largest producers, exporters, and importers of agricultural
products. The value of agricultural production was approximately US$292 billion in 2007. 28 The
value of crop production, which accounts for around 51% of the total value of agricultural production,
is forecast to reach a record level in 2008 (US$176 billion), primarily as a result of higher commodity
prices. Agricultural exports were US$90 billion in 2007, around 9% of total U.S. exports.29 Main
exports were grains and feeds, soybeans, and red meats and their products. Agricultural imports were
US$72 billion, around 4% of total imports. Main imports were vegetables, fruits, and grains and
feeds.

 The Agricultural Adjustment Act of 1938 and the Agricultural Act of 1949 constitute what is known
as the "permanent" legal framework governing commodity price and income support in the United
States. The U.S. Congress regularly enacts legislation that amends and suspends provisions of the
permanent laws. The last such legislation was the Farm Security and Rural Investment Act of 2002
(the 2002 Farm Act), signed into law in May 2002. Additionally, Congress provides ad hoc
emergency and supplementary assistance under separate legislation.

28
29
 The Commodity Credit Corporation (CCC), a federal corporation operated by the U.S. Department of
Agriculture, manages most financial transactions for federal agricultural programmes. Annual
average net CCC outlays under the 2002 Farm Act (fiscal years 2002-07) were US$16.8 billion,
around one billion more than the annual average for the previous six fiscal years.

 The United States has taken steps to comply with the Dispute Settlement Body's recommendations
and rulings regarding a number of U.S

Border measures

 This is slightly more than twice the protection afforded to the non-agricultural sector.The average
MFN applied tariff for agriculture (WTO definition) in 2007 was 8.9%

 Parts of tariff quotas are generally allocated to specific countries. This is the case for most products
subject to tariff quotas, including beef, certain dairy products, peanuts and peanut butter, chocolate
crumb, and tobacco. Apart from the tariff quotas specified in its WTO schedule of commitments, the
United States has allocated additional tariff quotas to its preferential trading partners under free-
trade agreements.

 Access to tariff quotas is on a first come, first served basis, except for dairy products and sugar.
Access for dairy is granted to "historical" importers, importers designated by the government of an
exporting country, and on the basis of a lottery.According to the U.S. International Trade
Commission, some agricultural products, including beef, dairy, ethyl alcohol, sugar and sugar-
containing products, and tobacco remain subject to high import barriers. 30 For example, the
Commission estimates that the removal of barriers on imports of raw and refined sugar would expand
imports of these two products by 281% and 553%, and increase U.S. welfare by US$811 million.
The Commission estimates that the elimination of barriers on imports of dairy products would add
US$573 million to U.S. welfare; the associated increase in imports of these products would range
between 88% and 380%.

Export subsidies, credit, insurance, and guarantees

 The United States scheduled export subsidy reduction commitments under the WTO Agreement on
Agriculture for 13 product groups.

 Under the Export Enhancement Program (EEP) and the Dairy Export Incentive Program (DEIP), the
United States provides cash bonus payments to exporters of eligible commodities based on the
quantity exported. The commodities eligible under the EEP are wheat, wheat flour, rice, frozen
poultry, barley, barley malt, table eggs, and vegetable oil. Under the DEIP, the eligible commodities
are milk powder, butterfat, and various cheeses. Both programmes are authorized through
15 March 2008. There have been no expenditures under the EEP since fiscal year 2002, and no
bonuses under the DEIP since 2004.

 The United States operates two main export credit guarantee programmes: the Export Credit
Guarantee Program (known as GSM-102) and the Facility Guarantee Program (FGP)
The Intermediate Export Credit Guarantee Program (GSM-103), and the Supplier Credit Guarantee
Program were discontinued in 2005.

30
 Under GSM-102, the CCC is authorized to guarantee the repayment of credit made available to
finance U.S. exports of agricultural goods on credit terms of up to three years. The CCC generally
guarantees 98% of the principal and a portion of the interest. It determines the eligibility of
agricultural products based on market potential.

 Under the FGP the CCC extends credit guarantees to U.S. banks for financing export sales of U.S.
manufactured goods and services that improve agriculture-related facilities in emerging markets,
including storage, processing, and handling facilities. The export credit guarantee for sales of
manufactured goods and services is only extended to projects that are expected to benefit the export
of U.S. agricultural products.

MINING AND ENERGY

 The United States is among the world's largest producers of several minerals, including coal, salt,
sulphur, aluminium, copper, and gold. The United States is the world's largest energy producer and
consumer. Energy is imported mostly in the form of petroleum. The United States has the twelfth
largest proved oil reserves in the world (21.8 billion barrels in December 2005).
 The federal Government has adopted measures to foster competition in wholesale electricity markets
during the past three decades. 31 In addition, some states began to allow retail customers to choose
their power supplier during the 1990. The Energy Policy Act of 2005 contains provisions to enhance
wholesale competition in electricity. It allows the Federal Energy Regulatory Commission (FERC) to
impose civil penalties for market manipulation, expands the FERC's authority to review mergers and
generation facility transfers to prevent increases in the exercise of market power, and contains
provisions to enhance market transparency. The Act also includes provisions to strengthen the
interstate power grid. As at April 2006, 16 states and the District of Columbia allowed at least some
competition at the retail level.

 The General Mining Law of 1872 governs access to hardrock minerals in federal public lands. 32 It
authorizes a prospector to stake a claim to land believed to contain a mineral deposit, subject to the
payment of certain fees. A claim gives the holder the right to develop the minerals, and may be
"patented" to transfer the ownership of the public land to the private sector. The law does not require
payment of royalties. Many states have enacted laws governing mineral rights on state-owned lands.
Although these laws vary considerably, many authorize royalty payments. 33

 Federal oil and gas are subject to leasing under the Mineral Leasing Act. Companies seeking to lease
federal lands for oil and gas exploration must pay a "bonus bid" determined through a competitive
auction. Companies must pay royalties based on a percentage of the cash value of the oil and gas
produced and sold.

 The energy tax structure seeks to provide incentives for the supply of alternative and renewable fuels
(Table IV.3). The Energy Policy Act of 2005, signed into law in August 2005, establishes tax
incentives for domestic energy production and energy efficiency valued at approximately US$15
billion during 11 years.34 The Act requires a doubling of biofuel use and authorizes several federal
energy research and development programmes.

31
32

33
34
Table IV.3

Selected energy tax incentives, early 2007

Revenue loss, fiscal year

Product Description
2006 (US$ million)
Oil and gas Exploration firms may deduct 100% of "intangible drilling costs" in 1,100
first year (70% for integrated producers); 2 year amortization of
geological and geophysical expenses (5 years for integrated
producers)

Fuel minerals Independent producers and royalty owners can deduct 15% of 1,000
sales of oil and gas (up to 25% for marginal wells); between 10%
and 20% for other fuel minerals; only up to 1,000 barrels or
equivalent per day

Synthetic fuels from coal and gas Tax credit of US$6.40 per barrel of oil equivalent or US$1.13 per 2,700
produced from either 1,000 cubic feet of gas
geopressurized brine, Devonian
shale, tight formations, or biomass

Biomass ethanol Tax credit of US$0.51 per gallon (blenders) plus US$0.10 per gallon 1,890
(small producers)

Electricity from wind, closed-loop Tax credit of US$0.018 per kWh 2,000
biomass, poultry waste, solar,
geothermal

 Domestically produced and imported passenger automobiles must meet the standards separately (two-
fleet rule). A vehicle is considered to be part of the domestic fleet if at least 75% of the cost of the
content is of U.S., Canadian, or Mexican origin.

 In December 2007, Congress amended the Energy Policy and Conservation Act, mandating standards
for passenger automobiles and light trucks of model years 2011-2020 to ensure that the average fuel
economy of the combined industry-wide fleet of passenger automobiles and light trucks in model year
2020 is at least 35 miles per gallon.35 The Department of Transportation must set these standards on
the basis of a vehicle attribute such as size.

 The Energy Policy and Conservation Act authorized in 1975 the creation of a Strategic Petroleum
Reserve (SPR) for the storage of up to one billion barrels of petroleum products. 36 The SPR, which is
managed by the Department of Energy, contained enough oil to offset 59 days of U.S. oil imports as
at 2006.37

MANUFACTURING

 The United States is the world's leading producer of manufactured goods, accounting for about 21%
of world manufacturing value added.38 Foreign direct investment (FDI) is important in

35
36

37
38
 manufacturing. Assets of majority-owned non-bank U.S. affiliates in the manufacturing sector were
almost US$1.1 trillion in 2005, almost one fifth of total U.S. affiliate assets.

 In general, tariffs on manufactured goods are low. The average applied MFN tariff for manufactures
(WTO definition) was 4% in 2007. However, the U.S. International Trade Commission has identified
12 sectors that are subject to relatively high tariffs. 39 The Commission estimates that U.S. welfare
gains from eliminating the tariffs on these products would range from US$2 million for edible fats
and oils to US$249 million for footwear and leather products. 40 The increase in imports resulting
from this liberalization would range from 2% to 19%.

 In addition to tariffs, government assistance to the manufacturing sector includes export financing,
direct payments, and tax benefits
 The U.S. International Trade Commission has also identified textiles and apparel as subject to
relatively high import barriers

 Manufacturers spent US$158 billion for research and development (R&D) performed in the
United States in 2005.41 Federal government R&D expenditures in the manufacturing sector were
approximately US$15.6 billion. These expenditures cut across a broad spectrum of industries,
including computers and electronic products, aerospace products and parts, chemicals, and
machinery. Together these industries accounted for approximately 72% of federal funds for R&D in
manufacturing.

 The United States maintains programmes to assist shipyards or ship-repair facilities. The Federal
Ship Financing Program provides guarantees for private-sector financing to construct, reconstruct,
and recondition commercial vessels in U.S. shipyards. 42 Guarantees may not cover financing for the
acquisition of foreign components unless the Department of Transportation grants a waiver

Services

 The services sector is by far the largest contributor to output and employment in the U.S. economy.
The private services sector accounted for 67.8% of GDP and 65.6% of total employment in 2006, or
80.2% and 83.4%, respectively, if government services are included. Private services industries have
been expanding faster than GDP during the period under review and contributed 2.75 percentage
points to GDP growth in 2006. The United States made wide-ranging sector-specific commitments
under the General Agreement on Trade in Services (GATS). 43 These include 11 of the 12 broadly
defined service areas,

39
40
41

42
43
 The United States maintains several media ownership restrictions, with the objective of promoting
competition, diversity, and "localism" in media production. Under the rules in effect in January
2008, the dual network rule prohibits mergers between two or more of the "top four" networks,
that is, ABC, CBS, Fox, and NBC.

Financial services

 The U.S. financial services sector accounted for 7.8% of GDP in 2006, about half of which was
generated by banking activities, some 30% by insurance, 18% by securities trading activities, and 2%
by funds, trusts, and other financial vehicles. 44 The sector employed 6.1 million people in 2005, or
some 4.3% of total employment.

 The Gramm-Leach-Bliley Act (Financial Services Modernization) of 1999 (GLBA) is the main law
regulating the consolidated financial sector. The GLBA allows domestic and foreign banks to
affiliate with entities engaged in other activities that are financial in nature, or incidental or
complementary to a financial activity, provided certain capital and managerial standards are met.

 U.S. bank subsidiaries of foreign banks are treated as domestic banks. Branches and agencies of
foreign banks have similar powers to banks and are subject to similar supervision; agencies,
however, may not accept deposits from U.S. citizens or residents.

 The Financial Services Regulatory Relief Act of 2006 introduced changes to U.S. financial service
legislation, which affect banking, securities, and insurance business. The Act authorized payment of
interest on funds maintained by a depository institution at a Federal Reserve bank and authorized the
Federal Reserve Board to reduce to 0% the reserves required to be maintained by a depository
institution as of 1 October 2011. The current statutory requirement ranges from 3% to 14%. The Act
also amended the Home Owners' Loan Act (HOLA) to prescribe conditions under which a federal
savings association may convert to a national or state bank, including prior FDIC approval for each
bank if more than one national or state bank results from the conversion.

 Foreign banks may establish a commercial presence in the U.S. market either by establishing federal-
or state-licensed branches, agencies, or representative offices, or by establishing or acquiring a
national or state subsidiary bank.

 The operations of foreign banks in the United States are mainly governed by the International
Banking Act of 1978 (IBA), which provides for the granting of national treatment to foreign banks
and offers them the option of establishing federally licensed branches and agencies in addition to
state-licensed offices.

 Initial entry into the U.S. market through the establishment or acquisition of a nationally chartered
bank subsidiary by a foreign person is permitted in all states. Initial entry or expansion by a foreign
person (but not a domestic person) through acquisition or establishment of a state-chartered
commercial bank subsidiary is prohibited or limited in 29 states.

 The U.S. insurance market is open to foreign direct investment through acquisition of a licensed
insurance company. Market access for foreign companies may also take place through incorporation
in a state as a subsidiary of a foreign insurance company, with the exception of Minnesota,

44
 Mississippi, and Tennessee. Foreign companies may also be licensed to operate as branches in 36
states and the District of Columbia.

 A federal tax on gross premium income is charged at 1% on all life insurance and on reinsurance, and
at 4%, on non-life insurance premiums covering U.S. risks paid to companies not incorporated under
U.S. law, or under the laws of countries with which the United States has double taxation treaties.

Air transport services

 Over a quarter of U.S. trade by value is moved via air cargo, which is the main mode of transportation
for high value and perishable goods. U.S. air traffic accounts for about one third of the world
aviation market, and 17 of the world's 30 busiest airports are located in the United States. There were
some 19,854 airports in 2006, of which 5,270 for public use.

 The U.S.-EU Air Transport Agreement, signed 30 April 2007, is scheduled to be applied
provisionally from 30 March 2008. The agreement, which replaces bilateral agreements between the
United States and EU Member States, introduced a number of liberalization measures with respect to
air traffic freedoms, ownership and control, provision of aircraft with crew, and U.S. government
procured transportation

 The United States has bilateral aviation agreements with some 100 countries, of which 79 are open
skies agreements (OSAs), as defined by the DOT.45 The DOT views OSAs as providing an
environment that produces the most competitive and price-sensitive service for consumers.

1. Table AI.6
Major indicators of U.S. inbound and outbound direct investment by selected country and sector, 2006

U.S. direct investment abroad Foreign direct investment in the

(outbound investment) United States (inbound investment)

Stocks US$ billion Stocks US$ billion

All countries 2,384.0 1,789.1

United Kingdom 364.1 303.2

Canada 246.5 159.0

Netherlands 215.7 189.3

Switzerland 90.1 140.3

Bermuda 108.5 2.8

Japan 91.8 211.0

Germany 99.3 202.6

Singapore 60.4 2.4

Mexico 84.7 6.1

France 65.9 158.8

45
 U.S. direct investment abroad Foreign direct investment in the
(outbound investment) United States (inbound investment)

Stocks US$ billion Stocks US$ billion

Ireland 83.6 28.6

Australia 122.6 25.7

Hong Kong, China 38.1 3.5

Luxembourg 82.6 130.9

Brazil 32.6 2.1

By industry

Mining 136.1 –

Utilities –

Manufacturing 503.5 593.4

Wholesale trade 164.3 242.2

Retail trade .. 32.9

Information 74.4 126.0

Depositary credit intermediation (banking) 67.6 149.0

Finance (except depositary inst.) and 484.8 257.7

insurance
Real estate and rental and leasing – 43.3

Professional, scientific, and technical services 57.4 62.3

Holding companies (non-bank) 710.3 ..

Other industriesa 185.5 272.2

Table AII.3

Overview of preferential trade agreements, early 2008

Main products
Entry into WTO
Agreement Tariff elimination excluded from Additional coverage
force notification
tariff elimination
NAFTA
Canada January 1994 L/7176 (GATT) U.S. duties on most Dairy products, Services, investment,
and S/C/N/4 goods eliminated in 1998 cocoa products, competition policy,
peanuts, sugar, and government procurement,
syrups intellectual property rights

Mexico January 1994 L/7176 (GATT) U.S. duties on most
and S/C/N/4 goods eliminated
immediately; remainder
phased out over 5, 10, or
15 years (the last phase
None Services, investment,
competition policy,
government procurement,
intellectual property rights
 Main products
Entry into WTO
Agreement Tariff elimination excluded from Additional coverage
force notification
tariff elimination
out period ended on
1 January 2008)

Israel September 1985 L/5862 (GATT) U.S. duties on most Dairy products, Government procurement
(Agreement on goods eliminated in 1995 beef, peanuts, sugar
Trade in and sugar-
Agricultural containing products,
Products in cotton, seasonings
effect since
2004)

Jordan December 2001 WT/REG134/1 Most U.S. duties phased Tobacco and Services, intellectual
and S/C/N/193 out over periods of tobacco products property rights,
between 2 and 10 years environment, labour

Chile January 2004 WT/REG160/N/1, U.S. duties on most None Services, investment,
S/C/N/262 goods eliminated competition policy,
immediately; remainder government procurement,
phased out over periods intellectual property rights,
of between 2 and 12 environment, labour
years

Singapore January 2004 WT/REG161/N/1, U.S. duties on most None Services, investment,
S/C/N/263 goods eliminated competition, government
immediately; remainder procurement, intellectual
phased out over 4, 8, or property rights,
10 years environment, labour

Australia January 2005 WT/REG184/N/1, U.S. duties on most Dairy products, and Services, investment,
S/C/N/310 goods eliminated sugar and sugar competition, government
immediately; remainder containing products procurement, intellectual
phased out over periods property rights,
of between 4 and 18 environment, labour
years

Morocco January 2006 WT/REG208/N/1, U.S. duties on most None Services, investment,
S/C/N/362 goods eliminated government procurement,
immediately; remainder intellectual property rights,
phased out over periods environment, labour
of between 5 and 18
years

Bahrain August 2006 WT/REG219/N/1, U.S. duties on most None Services, government
S/C/N/375 goods eliminated procurement, intellectual
immediately; remainder property rights,
phased out over periods environment, labour
of 5 or 10 years
 Central March 2006 (el Wt/reg211/n/1-4 U.s. Duties on most Sugar Services, investment, government
america- salvador), april and s/c/n/365, goods eliminated procurement, intellectual property
dominican 2006 (honduras 366, 372, 391 immediately; remainder rights, environment, labour
republic and nicaragua), phased out over periods
july 2006 of 5 to 20 years
(guatemala),
and march 2007
(dominican
republic)
Agreements signed but not yet in force
Colombia n.a. n.a. U.S. duties on most Sugar Services, investment, competition
goods eliminated policy, government procurement,
immediately; remainder intellectual property rights,
phased out over periods environment, labour
of between 5 and 15
years
Costa Rica n.a. n.a. U.S. duties on most Sugar Services, investment, government
goods eliminated procurement, intellectual property
immediately; remainder rights, environment, labour
phased out over periods
of 5 to 20 years
Panama n.a. n.a. U.S. duties on most Sugar Services, investment, government
goods eliminated procurement, intellectual property
immediately; remainder rights, environment, labour
phased out over periods
of between 5 and 17 year
Peru n.a. n.a. U.S. duties on most Sugar Services, investment, competition
goods eliminated policy, government procurement,
immediately; remainder intellectual property rights,
phased out over periods environment, labour
of between 5 and 17
years
Korea n.a. n.a. U.S. duties on most None Services, investment, competition
goods eliminated policy, government procurement,
immediately; remainder intellectual property rights,
phased out over periods environment, labour
of between 2 and 15
years
Oman n.a. n.a. U.S. duties on most None Services, investment, government
goods eliminated procurement, intellectual property
immediately; remainder rights, environment, labour
phased out over periods
of 5 or 10 years

General overview of preferential rules of origin

Substantial transformation criteria

Main tolerance
Technical Cumulationb
CTHc Minimum local value added d provisionsa
test
Free-trade agreements
U.S.-Israel No 35% of appraised value No None Only up to a maximum of
15% of value

NAFTA Yes 60% under transaction value
method or 50% under net cost
method; different thresholds
apply to certain products
under HS 34-37, 64, and 87
Yes 7% of value; textiles Full
and apparel: total
weight of fibres or
yarns must not exceed
7% of total weight
 Substantial transformation criteria
Main tolerance
Technical Cumulationb
CTHc Minimum local value added d provisionsa
test
U.S.-Jordan No 35% of appraised value No None Only up to a maximum of
15% of value

U.S.-Chile Yes 45% under build-down method
or 35% under build-up method;
different thresholds apply to
products under HS 64, 84, and
87
Yes 10% of value; textiles Full
and apparel: total
weight of fibres or
yarns must not exceed
7% of the total weight

U.S.- Yes 45% under build-down method
Singapore or 35% under build-up method;
different thresholds apply to
products under HS 64, 84, 86,
and 87
Yes 10% of value; textiles Full
and apparel: total
weight of fibres or
yarns must not exceed
7% of the total weight

U.S.- Yes 45% under build-down method
Australia or 35% under build-up method;
different thresholds apply to
products under HS 64, 84, 87,
and 90
Yes 10% of value; textiles Full
and apparel: total
weight of fibres or
yarns must not exceed
7% of total weight

U.S.- Limited to 35% of appraised value Yes None; textiles and Full
Morocco certain apparel: total weight
products in of fibre or yarns must
HS6-9, 12, not exceed 7% of total
13, 20-22, weight
39, 72, 85,
and 87, and
to textiles
and apparel

U.S.- Yes 45% under build-down method Yes 10% of value; textiles Full; under certain
Dominican or 35% under build-up method; and apparel: total conditions, accumulation
Republic- different thresholds apply to weight of fibres or with Canada and Mexico for
Central products under HS 39, 40, 76, yarns must not exceed woven apparel, subject to a
America 84, 85, 87, and 92 10% of the total cap
weight

U.S.- Limited to 35% of appraised value No None; textiles and Full

Bahrain certain apparel: total weight
products in of fibre or yarns must
HS 17, 18, not exceed 7% of total
20, and 21, weight
and to
 Substantial transformation criteria
Main tolerance
Technical Cumulationb
CTHc Minimum local value added d provisionsa
test
textiles and
apparel

Summary analysis of the MFN tariff, 2007

MFN

Description Coefficient of
Averagea Range
No. of lines variation
(%) (%)
(CV)

Total 10,253 4.8 0 - 350 2.5

HS 01-24 1,648 8.7 0 - 350 3.0

HS 25-97 8,605 4.1 0 - 67.3 1.4

By WTO category

WTO Agriculture 1,595 8.9 0 - 350 3.0

- Animals and products thereof 139 4.2 0 - 100 2.4

- Dairy products 166 21.4 0 - 177.2 1.1

 MFN

Description Coefficient of
Averagea Range
No. of lines variation
(%) (%)
(CV)

- Coffee and tea, cocoa, sugar etc. 315 9.7 0 - 90.7 1.4

- Cut flowers, Plants 57 1.7 0 - 6.8 1.2

- Fruit and vegetables 439 6.3 0 - 131.8 1.9

- Grains 21 1.6 0 - 11.2 1.6

- Oil seeds, fats and oils and their products 95 6.3 0 - 163.8 3.4

- Beverages and spirits 100 4.8 0 - 51.8 1.8

- Tobacco 47 56.0 0 - 350 2.2

- Other agricultural products n.e.s. 216 2.0 0 - 67.3 2.8

WTO Non-agriculture (incl. petroleum) 8,658 4.0 0 - 63.9 1.4

- WTO Non-agriculture (excl. petroleum) 8,630 4.1 0 - 63.9 1.4

- - Fish and fishery products 201 2.0 0 - 35 2.2

- - Mineral products, precious stones and precious

metals 540 3.5 0 - 38 1.5

- - Metals 1,015 1.9 0 - 23.8 1.4

- - Chemicals and photographic supplies 1,843 3.7 0 - 6.5 0.7

- - Leather, rubber, footwear and travel goods 397 7.3 0 - 63.9 1.6

- - Wood, pulp, paper and furniture 526 0.7 0 - 14 2.8

- - Textile and clothing 1,659 9.1 0 - 42.1 0.7

- - Transport equipment 242 2.5 0 - 25 1.9

- - Non-electric machinery 790 1.4 0 - 9.9 1.4

- - Electric machinery 529 2.2 0 - 15 1.0

- - Non-agriculture articles n.e.s. 888 3.0 0 - 35.8 1.2

- Petroleum 28 2.2 0-7 1.2

By ISIC sectorb

Agriculture and fisheries 488 5.5 0 - 350 5.9

Mining 116 0.3 0 - 10.5 3.7

Manufacturing 9,648 4.8 0 - 350 2.0

By HS section

01 Live animals & products 437 9.4 0 - 177.2 1.8

02 Vegetable products 499 4.1 0 - 163.8 2.6

 MFN

Description Coefficient of
Averagea Range
No. of lines variation
(%) (%)
(CV)

03 Fats & oils 66 3.7 0 - 19.1 1.3

04 Prepared food etc. 646 12.2 0 - 350 3.1

05 Minerals 201 0.6 0 - 13.1 2.9

06 Chemical & products 1,710 3.5 0 - 6.5 0.8

07 Plastics & rubber 375 3.7 0 - 14 0.7

08 Hides & skins 220 4.3 0 - 20 1.1

09 Wood & articles 237 2.5 0 - 18 1.4

10 Pulp, paper etc. 279 0.0 0-0 n.a.

11 Textile & articles 1,594 9.0 0 - 67.3 0.8

12 Footwear, headgear 174 13.9 0 - 63.9 1.1

13 Articles of stone 298 5.2 0 - 38 1.2

14 Precious stones, etc. 105 3.0 0 - 13.5 1.1

15 Base metals & products 995 1.9 0 - 23.8 1.4

16 Machinery 1,340 1.7 0 - 15 1.2

17 Transport equipment 253 2.4 0 - 25 1.9

18 Precision equipment 514 3.0 0 - 19.6 1.1

19 Arms and ammunition 39 1.6 0 - 10 1.5

20 Miscellaneous manufacturing 264 3.3 0 - 35.8 1.3

21 Works of art, etc. 7 0.0 0-0 n.a.

ariffs according to U.S.preferential agreements, 2006

Average tariffs (per cent)

No. of
Description MFN Canadaa Mexicoa Australiaa Bahrain Chilea
linesa

Total 10,311 4.7 0.6 0.0 1.5 1.0 1.0

HS 01-24 1,647 8.7 3.4 0.1 3.9 5.5 5.3

HS 25-97 8,664 4.0 0.0 0.0 1.1 0.1 0.2

 Average tariffs (per cent)

No. of
Description MFN Canadaa Mexicoa Australiaa Bahrain Chilea
linesa
By WTO category

WTO Agriculture 1,611 8.9 3.5 0.1 4.1 5.7 5.5

- Animals & products thereof 140 4.3 0.0 0.0 1.6 1.9 0.8

- Dairy products 166 22.5 17.5 0.5 2.2 16.0 18.1

- Coffee, tea, cocoa, sugar etc. 314 9.4 6.1 0.1 4.3 6.1 5.6

- Cut flowers, plants 60 1.4 0.0 0.0 0.1 0.0 0.0

- Fruit & vegetables 437 6.4 0.9 0.1 3.9 3.0 3.0

- Grains 21 1.7 0.0 0.0 0.3 0.0 0.0

- Oil seeds, fats & oils & their

products 100 6.0 3.1 0.3 3.6 3.5 2.9

- Beverages & spirits 100 4.8 0.3 0.2 0.2 2.8 2.8

- Tobacco 47 55.9 0.0 0.0 48.6 48.9 40.8

- Other agricultural products n.e.s. 226 2.0 0.7 0.0 0.2 0.5 0.6

WTO Non-agriculture (incl.

petroleum) 8,700 3.9 0.0 0.0 1.1 0.1 0.2

- WTO Non-agriculture (excl.

petroleum) 8,672 4.0 0.0 0.0 1.1 0.1 0.2

- - Fish & fishery products 192 2.0 0.0 0.0 0.0 0.1 0.3

- - Mineral products, precious

stones & precious metals 530 3.3 0.0 0.2 0.9 0.2 0.7

- - Metals 1,011 1.9 0.0 0.0 0.1 0.0 0.1

- - Chemicals & photographic

supplies 1,828 3.7 0.0 0.0 0.0 0.0 0.0

- - Leather, rubber, footwear &

travel goods 389 7.0 0.0 0.3 1.1 1.3 1.6

- - Wood, pulp, paper & furniture 508 0.7 0.0 0.0 0.0 0.0 0.0

- - Textiles & clothing 1,658 9.0 0.0 0.0 5.0 0.0 0.0

- - Transport equipment 229 2.6 0.0 0.0 0.0 0.0 0.1

- - Non-electric machinery 853 1.3 0.0 0.0 0.1 0.0 0.0

- - Electric machinery 564 2.1 0.0 0.0 0.1 0.1 0.0

- - Non-agriculture articles n.e.s. 910 2.9 0.0 0.0 0.1 0.0 0.3

- Petroleum 28 2.1 0.0 0.0 0.0 0.0 0.2

 Average tariffs (per cent)

No. of
Description MFN Canadaa Mexicoa Australiaa Bahrain Chilea
linesa
By ISIC sector a

Agriculture & fisheries 493 5.6 0.4 0.1 4.0 3.9 3.3

Mining 118 0.3 0.0 0.0 0.1 0.0 0.0

Manufacturing 9,699 4.7 0.6 0.0 1.4 0.8 0.9

By HS section

01 Live animals & products 428 10.1 6.8 0.2 1.3 6.7 7.3

02 Vegetable products 505 4.0 0.6 0.1 2.1 1.9 1.6

03 Fats & oils 67 3.7 0.2 0.0 1.2 0.9 1.1

04 Prepared food etc. 647 12.0 3.7 0.2 7.5 8.1 7.3

05 Minerals 203 0.6 0.0 0.0 0.0 0.0 0.0

06 Chemicals & products 1,707 3.5 0.0 0.0 0.0 0.0 0.0

07 Plastics & rubber 373 3.7 0.0 0.0 0.0 0.0 0.0

08 Hides & skins 222 4.3 0.0 0.0 0.0 0.0 0.6

09 Wood & articles 193 2.2 0.0 0.0 0.1 0.0 0.1

10 Pulp, paper etc. 288 0.0 0.0 0.0 0.0 0.0 0.0

11 Textiles & articles 1,591 9.0 0.1 0.0 5.2 0.1 0.1

12 Footwear, headgear 168 13.4 0.0 0.6 2.5 3.1 3.0

13 Articles of stone 283 5.0 0.0 0.3 1.7 0.5 1.4

14 Precious stones, etc. 105 3.0 0.0 0.0 0.1 0.0 0.0

15 Base metals & products 991 1.9 0.0 0.0 0.1 0.0 0.1

16 Machinery 1,444 1.6 0.0 0.0 0.1 0.0 0.0

Table AIII.3 (cont'd)

 Average tariffs (per cent)

No. of
Description MFN Canadaa Mexicoa Australiaa Bahrain Chilea
linesa
17 Transport equipment 240 2.6 0.0 0.0 0.0 0.0 0.1

18 Precision equipment 531 3.0 0.0 0.0 0.1 0.0 0.5

19 Arms & ammunition 40 1.6 0.0 0.0 0.0 0.0 0.0

20 Miscellaneous manufacturing 278 3.2 0.0 0.0 0.1 0.0 0.2

21 Works of art, etc. 7 0.0 0.0 0.0 0.0 0.0 0.0

By stage of processing

First stage of processing 962 3.7 0.4 0.0 2.2 2.3 1.9

Semi-processed products 3,395 4.2 0.1 0.0 1.2 0.1 0.1

Fully-processed products 5,954 5.2 0.8 0.1 1.6 1.2 1.4

Average tariffs (per cent)

No. of
Description MFN DR CAFTAa Israela Jordanb Moroccoa Singaporea
linesa

Total 10,311 4.7 0.8 0.3 0.7 1.8 1.3

HS 01-24 1,647 8.7 4.8 1.9 3.1 5.9 4.7

HS 25-97 8,664 4.0 0.0 0.0 0.3 1.0 0.7

By WTO category

WTO Agriculture 1,611 8.9 5.0 2.0 3.2 6.1 4.7

- Animals & products thereof 140 4.3 1.1 1.1 0.5 1.8 1.2

- Dairy products 166 22.5 17.3 5.8 6.9 17.4 12.8

- Coffee, tea, cocoa, sugar etc. 314 9.4 6.0 5.8 2.4 6.5 4.9

- Cut flowers, plants 60 1.4 0.0 0.0 0.0 0.0 0.1

- Fruit & vegetables 437 6.4 0.9 0.3 0.6 3.1 3.0

- Grains 21 1.7 0.0 0.0 0.0 0.0 0.3

- Oil seeds, fats & oils & their

products 100 6.0 3.1 0.1 1.2 3.8 2.8

- Beverages & spirits 100 4.8 0.3 0.3 1.2 3.4 2.5

- Tobacco 47 55.9 48.6 0.0 55.3 51.0 38.2

- Other agricultural products n.e.s. 226 2.0 0.8 0.7 0.3 0.8 0.6
 Average tariffs (per cent)

No. of
Description MFN DR CAFTAa Israela Jordanb Moroccoa Singaporea
linesa
WTO Non-agriculture (incl.
petroleum) 8,700 3.9 0.0 0.0 0.3 1.0 0.7

- WTO Non-agriculture (excl.

petroleum) 8,672 4.0 0.0 0.0 0.3 1.0 0.7

- - Fish & fishery products 192 2.0 0.0 0.0 0.1 0.1 0.8

- - Mineral products, precious

stones & precious metals 530 3.3 0.0 0.0 0.2 0.4 1.3

- - Metals 1,011 1.9 0.0 0.0 0.0 0.1 0.3

- - Chemicals & photographic

supplies 1,828 3.7 0.0 0.0 0.0 0.0 1.2

- - Leather, rubber, footwear &

travel goods 389 7.0 0.3 0.0 1.4 1.3 3.4

- - Wood, pulp, paper & furniture 508 0.7 0.0 0.0 0.0 0.0 0.1

- - Textiles & clothing 1,658 9.0 0.0 0.0 1.0 4.6 0.1

- - Transport equipment 229 2.6 0.0 0.0 0.3 0.0 1.0

- - Non-electric machinery 853 1.3 0.0 0.0 0.0 0.1 0.1

- - Electric machinery 564 2.1 0.0 0.0 0.0 0.2 0.2

- - Non-agriculture articles n.e.s. 910 2.9 0.0 0.0 0.1 0.0 0.7

- Petroleum 28 2.1 0.0 0.0 0.0 0.0 0.2

By ISIC sector a

Agriculture & fisheries 493 5.6 3.1 0.1 3.3 3.9 3.2

Mining 118 0.3 0.0 0.0 0.0 0.0 0.1

Manufacturing 9,699 4.7 0.7 0.3 0.6 1.7 1.2

By HS section

01 Live animals & products 428 10.1 7.0 2.6 2.8 7.4 5.5

02 Vegetable products 505 4.0 0.6 0.0 0.4 1.8 1.7

03 Fats & oils 67 3.7 0.2 0.2 0.1 1.5 1.1

04 Prepared food etc. 647 12.0 7.2 3.2 5.7 8.6 6.8

05 Minerals 203 0.6 0.0 0.0 0.0 0.0 0.1

Table AIII.3 (cont'd)

1. Table AIV.1
Products covered by tariff quotas

Average tariff ratea

Bound Fill rateb Fill rateb
2007 (%) Partners with reserved access
Products import 2002 2003
Out-of- (% of WTO quota)c
In-quota quota (%) (%)
quota
Beef, fresh, chilled or frozen (t) 4.5 26.4 696,621 83 90 Canada and Mexico (no limit),
Australia (57.6), New Zealand (32.5),
Japan (0.03), others (9.9)
Cream ('000 litres) 3.5 6.5 6,695 65 62 New Zealand (87.3)
Evaporated/condensed milk (t) 2.9 22.4 6,857 87 73 EU (21.8), Canada (17.0), Australia
(1.5)
Non-fat dried milk (t) 3.7 26.9 5,261 98 22 Global, no country allocation
Dried whole milk (t) 3.7 31.7 3,321 96 97 Global, no country allocation
Dried cream (kg) 9 109.9 99,500 7 90 Global, no country allocation
Dried whey/buttermilk (t) 6.7 42.9 296 22 23 Global, no country allocation
Butter (t) 4.4 19.1 6,977 98 99 Global, no country allocation
Butter oil/substitutes (t) 8 67 6,080 100 100 Global, no country allocation
Dairy mixtures (t) 12.8 29.5 4,105 100 100 Australia (27.7), EU (4.2)
Blue cheese (t) 14.4 34.4 2,911 97 99 EU (96.1), Chile (2.3), Czech Republic
(1.5), Argentina (0.07)
Cheddar cheese (t) 12 20.4 13,256 98 99 New Zealand (56.8), Australia (25.4),
EU (8.5), Canada (6.4), others (2.8)
American type cheese (t) 14.3 49.7 3,523 99 93 New Zealand (57.0) Australia (28.5),
EU (9.6), others (4.8)
Edam and Gouda cheese (t) 12.1 33.9 6,816 98 95 EU (81.2), Costa Rica (10.2),
Argentina (2.9), Uruguay (2.8), others
(3.0)
Italian type cheese (t) 13.9 48 13,481 99 98 Argentina (51.2), EU (33.5), Uruguay
(7.1), Romania (3.5), Hungary (2.8),
Poland (1.8), Others (0.1)
Swiss/Emmenthal cheese (t) 6.4 33.6 34,475 83 80 EU (62.6), Norway (20.3), Switzerland
(10.6), Australia (1.5), Czech Rep.
(1.0), Hungary (1.0), others (3.0)
Gruyere process cheese (t) 9.3 30.4 7,855 86 82 EU (74.1), Switzerland (16.0), others
(1.0)
Other cheese NSPF (t) 10 41.5 48,628 99 95 EU (56.7), New Zealand (25.2),
Switzerland (3.6), Australia (3.3),
Poland (2.7), Canada (2.5), Israel
(1.5), others (4.3)
Low fat cheese (t) 10 22.7 5,475 65 56 EU (74.2), New Zealand (17.5),
Australia (4.4), Poland (3.1), Israel
(0.9)
Peanuts (t) 9.1 139.8 52,906 100 100 Argentina (84.0), others (16.0)
Chocolate crumb (t) 4.5 13.6 26,168 79 76 EU (32.1), Australia (8.3)
Low-fat chocolate crumb (t) 5.9 14 2,123 0 0 Ireland (80.1), United Kingdom (19.9)
Infant formula containing oligo 17.5 33.2 100 100 55 Global, no country allocation
saccharides (t)
Table AIV.1 (cont'd)
 Average tariff ratea
Bound Fill rateb Fill rateb
2007 (%) Partners with reserved access
Products import 2002 2003
Out-of- (% of WTO quota)c
In-quota quota (%) (%)
quota
Green ripe olives (t) 7 1.6 730 0 0 Global, no country allocation
Place packed stuffed olives (t) 1.1 1.2 2,700 31 38 Global, no country allocation
Green olives, other (t) 2 2.4 550 69 68 Global, no country allocation
Green whole olives (t) 2.4 1.7 4,400 19 11 Global, no country allocation
Mandarin oranges (Satsuma) (t) 0 0.3 40,000 100 100 Global, no country allocation
Peanut butter and paste (t) 0 131.8 20,000 78 83 Canada (73.1), Argentina (15.4),
others (9.3)
Ice cream ('000 litres) 20 36.5 5,668 57 71 EU (20.0), New Zealand (11.4),
Jamaica (0.7)
EU (75.1), New Zealand (24.1),
Animal feed containing milk (t) 7.5 26.9 7,400 1 1
Australia (0.8)
Raw cane sugar ('000 t) 3.1 59.9 1,117 81 94 Mexico (2.1), others (95.3)
Other cane or beet sugars or syrups 3.3 45.4 22 151 96 Canada (29.4), Mexico (8.6),
('000 t) others (62.1)
Other mixtures over 10% sugar (t) 9.2 20.6 64,709 99 99 Canada (91.6), others (8.4)
Sweetened cocoa powder (t) 6.7 13.5 2,313 15 28 Global, no country allocation
Mixes and doughs (t) 10 29.5 5,398 100 100 Global, no country allocation
Mixed condiments and seasonings (t) 7.5 14.1 689 45 45 Global, no country allocation
Tobacco (t) 17.7 350 150,700 75 71 Brazil (53.3), Malawi (8.0), Zimbabwe
(8.0), Argentina (7.1), EU (6.6),
Guatemala (6.6), others (10.5)
Short staple cotton (t) 0 13.7 20,207 2 0 Global, no country allocation
Harsh or rough cotton (t) 2.7 1.6 1,400 0 0 Global, no country allocation
Medium staple cotton (t) 1.4 6.8 11,500 7 2 Global, no country allocation
Long staple cotton (t) 0.7 14.9 40,100 13 34 Global, no country allocation
Cotton waste (t) 0 0.7 3,335 0 0 EU (26.3), Japan (5.7), Canada (4.0),
India and Pakistan (1.2), China (0.3)
Cotton processed but not spun (kg) 5 67.3 2,500 100 100 Global, no country allocation