Trade News From Around the World, Jan. 24, 2013 - Los Angeles Area Chamber of Commerce

Issue 35| January 24, 2013

Unites States-Indonesia trade dispute

Indonesia has applied complex trade restrictive measures towards horticultural products, animals and animal products, which appears to be designed to protect Indonesia's domestic agriculture industry. According to United States Trade Representative Ron Kirk, "Indonesia's opaque and complex import licensing system affects a wide range of American agricultural exports. It has become a serious impediment to U.S. agricultural exports entering Indonesia, reducing Indonesian consumers' access to high-quality U.S. products." These import licensing requirements have unfairly restricted U.S. exports and the United States is requesting consultations with Indonesia to resolve the conflict.

Ron Kirk notifies congress of intent to negotiate new international trade agreement on services
United States Representative Ron Kirk notified the U.S. Congress of the Obama Administration's attempt to negotiate a new trade agreement on international trade in services. According to study by the Peterson Institute for International Economics, the United States is the world's largest service trader but tradable services are still five times less likely to be exported than manufactured products. The new trade agreement's main objective is to promote international trade in services and to support increased U.S. service exports and jobs. Read more.

The Port of Los Angeles announces development of $137.7 million rail project
Los Angeles Mayor Antonio Villaraigosa and Port of Los Angeles officials announced the development of a $137.7 million rail project at Berth 200, also known as the West Basin Railyard. The rail will serve as a critical link between the Port of Los Angeles and the Alameda Corridor. According to Mayor Villaraigosa, "The economic and environmental benefits of this investment will be felt across the nation." The rail project will not only create more jobs, but it will also increase on-dock rail efficiency, reduce congestion and improve the environment. Read more.

Canada and United States report progress on perimeter security and economic competitiveness
On December 14, Prime Minister Stephen Harper and President Barack Obama welcomed the release of the first annual Beyond the Border Action Plan Implementation Report and the Canada-United States Regulatory Cooperation Council (RCC) Joint Action Plan Progress Report. The reports demonstrated progress made by Canada and the United States on perimeter security and economic competitiveness. Canada and the United States are committed to this Action Plan, which represents the most significant boost to North American competitiveness since the signing of the North American Free Trade Agreement (NAFTA). Work on several additional initiatives is underway, including the harmonization of trusted-trader programs, the full implementation of an entry/exit program at the land border, and the negotiation of a preclearance agreement for the land, rail and marine modes together with an update to the existing pre-clearance agreement for the air mode. Read more.

Honduras joins Mexico in Free Trade Deal
Honduras recently signed a free trade agreement with Mexico and other Central American countries. This agreement is expected to boost trade and promote investment among countries in the region. The agreement supersedes previous bilateral and multilateral trade pacts amongst members and aims to promote investment through integration of product chains. Mexican exports to Central America, including Panama, totaled $5 billion in the first ten months of 2012 according to the central bank data. Read more .

Ethiopia to join the World Trade Organization by 2014
On January 17, World Trade Organization (WTO) Director Pascal Lamy made this announcement while visiting Ethiopia to hold talks on the potential of Ethiopia joining. Lamy met with Dr. Tedros Adhanom, Ethiopia's minister for foreign affairs, to discuss the accession procedures and requirements for memberships. Ethiopia made its initial application to join the WTO in 2003, and a Working Party to consider and guide the country's accession was set up in February of the same year. The current announcement by Lamy indicates that Ethiopia may be nearing completion of all the transformations required by the organization. Read more.

United States Trade Representative Ron Kirk Announces Plans to Depart in Late February

Ron Kirkannounced on January 22 that after four years of service under President Barack Obama, he plans to leave his post. Kirk released a statement, where he acknowledged the importance of the Obama administration's focus on the export of American-made products in an effort to combat the economic downturn: "In President Obama's first term, trade has been a major part of this Administration's efforts to support American jobs right here at home. I am proud of the United States Trade Representative's contribution to America's ongoing economic recovery." Kirk departs with a record of many accomplishments, including the implementation of trade agreements with Korea, Colombia andPanama, as well as important work with the WTO to reform and revive the work of members in Geneva.

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