Bridges Weekly Trade News Digest • Volume 6 • Number 41 • 28th November 2002
EU Realeases Annual Report On US Trade Restrictions
CANADA, US LOOK AT ENVIRONMENTAL IMPLICATIONS OF NEW TRADE DEALS
On 22 November, the Canadian Government released its initial environmental assessment of the WTO negotiations with the aim of helping trade negotiators to incorporate environmental considerations into trade policy. It is the first of three reports that will be prepared as the process continues with the final report to be released after the conclusion of the Doha round in 2005. This preliminary report concludes that the new negotiations will not have a significant impact on the Canadian environment as the further liberalisation of trade would not significantly affect Canada’s trade. In compiling this report, the Canadian government has consulted with numerous people throughout the country and with the publication of this initial draft, hopes to attain more opinions concerning the issue. The US has released a similar report in an effort to acquire knowledge from specialists concerning a potential free trade agreement (FTA) with the Central American countries. The US has called for comments on potential environmental repercussions of such an agreement as well as potential implications for US environmental laws and regulations. This data will then be compiled and used during the negotiations for the FTA.
"Initial Environmental Assessment of the new World Trade Organization (WTO) Negotiations," DFAIT, 22 November 2002; "Initiation of Environmental Review of Central America Free Trade Negotiations," OFFICE OF USTR, 22 November 2002. "Canadian Assessment of WTO Talks Finds Minimal Environmental Impact," WTO REPORTER, 26 November 2002.
On 20 November, the European Commission released its eighteenth annual report on barriers to trade and investment in the US. Trade between the partners, according to the report, amounts to over 1.1 trillion Euro with each partner employing about 3 million people in the other. However, also highlighted in the report were tough security measures put in place by the US after the 11 September attacks last year as well as a failure to comply with numerous WTO rulings. The Commission stated that the best way to handle these barriers to trade was to "deepen bilateral cooperation with US authorities." According to Trade Commissioner Pascal Lamy, "tackling bilateral trade obstacles is essential to transatlantic confidence-building." At the same time, the Commission has made it known that more formal dispute settlement measures, through the WTO, will be taken if necessary. Earlier this year, the EU won the right to impose USD4 billion worth of sanctions against the US for its Foreign Sales Corporation laws through a dispute settlement with the WTO (see BRIDGES Weekly, 13 September 2002). The EU has not imposed any of the sanctions as of yet, hoping that the US will remedy the situation.
To obtain a copy of the 2002 Report on US Barriers to Trade and Investment: http://europa.eu.int/comm/trade/mk_access/ustbr2002.pdf.
"EU Ready to Take U.S. to WTO Over Trade Disputes," REUTERS, 20 November 2002; "EU Annual Report On Us Trade Barriers Highlights Need For Enhanced Co-Operation," EU TRADE NEWS, 20 November 2002.
G20 MEETS TO DISCUSS TRADE AND TERRORISM
At a one-day conference on 23 November, the G20 agreed in New Delhi, India, to redouble efforts to cut all sources of funding to terrorist organisations, while at the same time work harder for the removal of high subsidies and trade barriers. The group of 20 was formed in 1999 and an international forum of finance ministers and central bank governors representing 19 countries, the European Union and the Bretton Woods Institutions (the International Monetary Fund and the World Bank). During discussions on reducing barriers to trade, developing countries called on the wealthy countries to increase market access, which would not only help the members of the group, but all of the WTO. In a communiqué issued at the end of the conference, the group acknowledged that, "the process of globalisation has not yet delivered its potential in reducing poverty in some of the world’s poorest countries. Reduction of the remaining high trade barriers and trade-distorting subsidies would contribute to spreading further the benefits of globalisation, including to the poorest developing countries." The 2003 meeting of the G20 will be held in Mexico.
Further information on the G20 and the communiqué: http://g20.nic.in/indexe.html.
"G20 Vows To Lift Trade Curbs, Choke Terror Funds," DOW JONES, 25 November 2002; "G20 targets terrorist financing," TAIPEI TIMES, 25 November 2002; "G20 pledge to benefit global trade," BUSINESSDAY, 27 November 2002.