u.s trade barriers

8/8/2019 U.S Trade Barriers

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U.S trade barriers

USTR's Office of the Western Hemisphere is responsible for developing, implementing and monitoring

U.S. trade policy in the Western Hemisphere.The Office of the Western Hemisphere also manages U.S.

trade relations with the Southern Common Market (Mercosur) and the Caribbean Common Market

(CARICOM), including bilateral trade councils with Argentina, Brazil, Uruguay and Paraguay. In addition,

it oversees U.S. trade preference programs in the region, including the Caribbean Basin Initiative, the

Andean Trade Preference Act and the Haitian Hemispheric Opportunity through Partnership

Encouragement.

U.S. Trade Facts

The United States has $951 billion in total (two ways) goods trade with Western Hemisphere countries

during 2009. Goods exports totaled $442 billion; Goods imports totaled $509 billion. The U.S. goods

trade deficit with the Western Hemisphere was $68 billion in 2009.

Exports

U.S. goods exports to the Western Hemisphere in 2009 were $441.5 billion, down 19.2% ($104 billion)

from 2008. U.S. exports to the Western Hemisphere accounted for 41.8% of overall U.S. exports in 2009.

The largest export markets are: Canada ($204.7 billion), Mexico ($129.0 billion), Brazil ($26.2 billion),

Colombia ($9.5 billion) and Chile ($9.4 billion). The top export categories (2-digit HS) in 2009 were:

Machinery ($72.3 billion), Electrical Machinery ($55.8 billion), Vehicles ($45.7 billion), Mineral Fuel and

Oil ($31.6 billion), and Plastic ($23.3 billion). U.S. exports of agricultural products to the Western

Hemisphere countries totaled $37.7 billion in 2009. U.S. exports of private commercial services* (i.e.,

excluding military and government) to the Western Hemisphere were $139.8 billion in 2008 .

Imports

U.S. goods imports from the Western Hemisphere totaled 509.1 billion in 2009, down 28.8% ($206

billion), from 2008. U.S. imports from the Western Hemisphere accounted for 27.6% of overall U.S.

imports in 2009.

The largest country supplier of imports are: Canada ($224.9 billion), Mexico ($176.5 billion), Venezuela

($28.1 billion), Brazil ($20.1 billion), and Colombia ($11.3 billion).

The five largest categories in 2009 were: Mineral Fuel and Oil (crude oil) ($140.5 billion), Vehicles ($58.9billion), Electrical Machinery ($55.9 billion), Machinery ($42.1 billion), and Special Other (returns) ($14.2

billion).

U.S. imports of agricultural products from the Western Hemisphere countries totaled $39.4 billion in

2009. U.S. imports of private commercial services* (i.e., excluding military and government) were $93.5

billion in 2008 (latest data available)


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Trade Balances

The U.S. goods trade deficit with the Western Hemisphere was $67.6 billion in 2009, a 59.8% decrease

($100.6 billion) over 2008. The U.S. goods trade deficit with the Western Hemisphere accounted for 13%

of the overall U.S. goods trade deficit in 2009.

The United States has free trade agreements in force with 17 countries. These are:

y Australiay Bahrainy Canaday Chiley C

osta Ricay Dominican Republicy El Salvadory Guatemalay Hondurasy Israely Jordany Mexicoy Moroccoy Nicaraguay Omany P

eruy Singapore

Tariff barriers

Despite the substantial tariff reduction and elimination agreed in the Uruguay Round, the U.S. retains a

number of significant duties and tariff peaks in various sectors including food products, textiles,

footwear, leather goods, jewellery and costume jewellery, ceramics, glass, trucks and railway cars.

Negotiations in the current Doha Development Round have not yet been concluded. The EUs concern isnow focused on a relatively limited number of U.S. peaks and other significant tariffs where less

progress has been made. Concerning multilayer parquet, changing classification by the U.S. Bureau of

Customs and Border Protection has led to higher tariffs. Although tariffs on optical fibre cables were

eliminated under the Information Technology Agreement (ITA), the U.S. does not wish to do the same

for optical fibres where rather substantial protection remains. Tubes for computer monitors are also


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excluded. Attempts to broaden the scope and coverage of products in the form of an ITA II have so far

failed.

Non tariff barriersa) Regulatory divergences and barriersb) Registration,Documentation, Customs Proceduresc) State Level Impedimentsd) Levies, Charges and Import Dutiese) Import Prohibitions

The 2010 National Trade Estimate Report: Key Elements

On March 31, 2010, United States Trade Representative Ron Kirk delivered to Congress the

National Trade Estimate Report, required by statute to describe significant barriers to U.S. trade

and investment faced in the last year as well as the actions being taken by the Office of the U.S.Trade Representative (USTR) to address those barriers. Key barriers noted in this year's report

include the following:

INDIA

Tariffs: India maintains a system of cascading tariffs, taxes and other import charges that taken

together are often cost-prohibitive. India's tariff regime is characterized by pronounceddisparities between bound rates (i.e., the rates that under WTO rules generally cannot be

exceeded) and applied rates (i.e., the actual rates charged), and the average applied rate is amongthe highest in the world. Furthermore, India's tariff schedule is not publicly available in onetransparent, easily accessible location, which imposes significant burdens on importers.

Legal and Regulatory Issues: India's legal and regulatory regime lacks transparency across all

sectors. U.S. companies report unnecessary burdens, bureaucratic delays, discrimination andcorruption as a result of unclear and inconsistent implementation ofIndia's trade and investment


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rules. Problems are encountered across all sectors, including government procurement, the tariffstructure, import requirements, and investment policies.

INDONESIA

Ph

armaceuticals:Indonesia continues to impose marketing approval requirements onpharmaceuticals that force foreign pharmaceutical companies to manufacture their products in

Indonesia if they want to sell their products there. This requirement will drive foreign

pharmaceutical companies out of the Indonesian market as existing authorizations expire andnew approvals are not granted.

Telecommunications Local Content Requirements: Also in Indonesia, the Ministry of

Communication and Information is implementing new decrees requiring telecommunications

operators to expend a certain percentage of their capital and operating expenditures on locallyproduced goods and services.

JAPAN

Barriers to a Level Playing Field in Insurance, Banking, and Express Delivery: U.S.

companies face an unlevel playing field in Japan's insurance, banking, and international expressdelivery sectors in light of preferential treatment given to Japan Post by the Japanese

government. Examples of advantages in the insurance sector include preferential supervisorytretment given to Japan Post Insurance over its private sector competitiors, and preferential

access forJapan Post Insurance to distribute its products through the Japan Post network. As

Japan considers further reforms to Japan Post, while neutral on whetherJapan Post should be

privatized, the United States continues to urge Japan to fully resolve issues of preferentialtreatment and establish a level playing field, consistent with its international obligations.

JAPAN AND KOREA

Restricted Market Access for Autos:Market access for U.S. autos is restricted by Japan andKorea through a variety measures, leading to very low market share for U.S. and other imported

autos. In the case of Korea, these measures include tariffs, standards, and discriminatory taxes.

In Japan, a variety of non-tariff barriers have impeded access, including a lack of transparency in

the process of certifying for import new technology vehicles for testing and demonstrationpurposes. In 2009, Japan also implemented its "cash for clunkers" program in a way that

excluded many U.S. autos.A

lthough improvements were made to the program in early 2010,barriers still remain.

MALAYSIA

Automotive Policies: Malaysia continues to implement a wide range of import restrictions,foreign investment restrictions, and subsidy programs to support its automotive sector and

protect it from foreign competition.


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SOUTH AFRICA

Antidumping: Transparency and due process remain issues with respect to the South African

government's administration of antidumping laws and regulations.A

s of the end of 2009, SouthAfrica maintained antidumping duties on three products from the United States, includingchicken meat portions.

u.s trade barriers

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