At the second meeting of the U.S.-Brazil CEO Forum on Monday, U.S. Commerce Secretary Carlos M. Gutierrez and Assistant to the President for International Economic Affairs Dan Price said that progress is being made to implement the CEOs’ recommendations, and they look forward to achieving even greater results before the October 2008 meeting in Brasilia. Gutierrez and Price co-chaired the meeting with Brazilian Presidential Chief of Staff Minister Dilma Rousseff and Minister of Development, Industry and Foreign Trade Miguel Jorge.

“Presidents Bush and Lula recognize the benefits of a strong and dynamic commercial relationship that promotes democracy, commerce and regional stability,” Gutierrez said. “We are building a strong foundation for an economic relationship that’s growing and this forum is an important part of that dialogue. The CEOs have raised critical business issues, including bilateral tax and investment treaties that will help improve competitiveness in both countries.”

“We are committed to the CEO Forum and have a strong interest in making progress that will strengthen our bilateral economic and commercial relations, promote bilateral trade and investment, increase our competitiveness in global markets, and advance economic prosperity for the people of both countries,” Price added.

The CEOs discussed critical business issues, including the conclusion of an agreement in the Doha Round and the negotiation of a bilateral tax treaty and a bilateral investment treaty.

The U.S.-Brazil CEO Forum was announced by Presidents Bush and Lula in March 2007. This meeting was the second in a series in which the Brazilian and U.S. governments partner with the private sector to strengthen our economic and commercial relations. The first meeting was held in October 2007.

U.S. and Mauritian officials met on April 28 to discuss implementation of the United States-Mauritius Trade and Investment Framework Agreement (TIFA).

The meeting, which was co-chaired by Assistant U.S. Trade Representative for Africa Florizelle Liser and Mauritian Secretary for Foreign Affairs Anand Neewoor, was the second held under the TIFA’s bilateral Council on Trade and Investment (TIFA Council), which monitors trade and investment relations, identifies opportunities for expanding trade and investment, and provides a forum for addressing challenges in the two countries’ trade ties. The TIFA Council was set up to facilitate a dialogue and help to increase commercial and investment opportunities by identifying and working to remove impediments to trade and investment flows between the United States and Mauritius.

“The TIFA Council reviewed a common workplan that the United States and Mauritius are jointly undertaking to implement the TIFA, including a wide-range of programs and activities to support, facilitate, and ensure progress and success in strengthening the U.S.-Mauritian trade and investment relationship,” said Assistant U.S. Trade Representative for Africa Florizelle Liser.

During the meeting, officials from the United States and Mauritius explored common objectives — including cooperation in the World Trade Organization, implementation of the African Growth and Opportunity Act, trade capacity building and technical assistance, intellectual property protection, export diversification, trade promotion, and development — and examined opportunities for a more comprehensive trade and investment relationship.

In September 2006, the United States and Mauritius signed a TIFA aimed at strengthening and expanding trade and investment ties between the United States and Mauritius. The TIFA provides a formal mechanism to address bilateral trade issues and helps enhance trade and investment relations between the United States and Mauritius. The TIFA encourages new trade and investment opportunities in both countries by establishing a cooperative forum for implementing specific strategies to enhance the U.S.-Mauritius trade and investment relationship.

Total two-way trade between Mauritius and the United States was valued at $237 million in 2007, with U.S. imports of $188 million and U.S. exports of $50 million. The leading U.S. exports to Mauritius are wheat, diamonds, aircraft, and jewelry. U.S. imports from Mauritius are primarily apparel, diamonds, seafood, perfumes, and sugar. In 2007, U.S. imports from Mauritius under AGOA, including its GSP provisions, were valued at $120 million.

The United States Trade and Development Agency (USTDA) is supporting a program that will lead to investment and economic growth in El Salvador’s Northern Zone through a grant awarded on Monday to complement the assistance provided under the Millennium Challenge Corporation’s (MCC) $461 million Compact in El Salvador. The grant, which is being provided under USTDA’s DR-CAFTA Trade Integration Initiative, will fund technical assistance in the creation of commercial zones in the Municipality of Chalatenango that will utilize MCC-financed infrastructure.

“I am grateful for the opportunity to hear about Chalatenango’s plans for private sector investment and trade to serve as a catalyst for growth,” said USTDA Director Larry W. Walther. “Chalatenango is well-positioned to play a central role in El Salvador’s development and we are pleased to be a partner in this effort.”

The Government of El Salvador has established the promotion of investment and economic growth in the Northern Zone as a development priority. Given the region’s location near the border with Honduras and Guatemala, the government has committed to providing opportunities that are intended to enable the Northern Zone’s population to fully participate in the benefits of regional integration and the economic opportunities brought about by the Dominican Republic-Central America-United States Free Trade Agreement.

USTDA Director Walther and Mayor Rigoberto Mejía signed an agreement on behalf of the U.S. Government and the Municipality of Chalatenango, respectively, to officially confer the grant. The grant signing ceremony took place in the Chalatenango Town Square. Salvadoran Vice Minister of Foreign Affairs Margarita Escobar and U.S. Ambassador to El Salvador Charles L. Glazer signed as witnesses to both grant agreements.

The $500,000 grant awarded to the Municipality of Chalatenango will help it develop a plan for municipal infrastructure and a commercial zone along road infrastructure that is being constructed with MCC financing. The project is expected to have a considerable impact on local infrastructure and commercial activity through the development of housing, business support enterprises, shopping centers, schools, health clinics, hotels and bus terminals.

At the grant signing ceremony, Director Walther announced USTDA’s intention to travel to Los Angeles to award two additional grants later in the week. The grant signings will take place at an event hosted by the El Salvador Consulate in Los Angeles at the City Club on Bunker Hill. The event is designed to foster a discussion with the Salvadoran community in the United States on U.S. private sector participation in El Salvador’s development. One of the USTDA grants that will be awarded will fund the creation of a development and investment plan for the Northern Zone for El Salvador’s National Development Commission. Through a separate grant to the Salvadoran Foundation for Economic and Social Development, USTDA is funding the development of an Internet portal devoted exclusively to information about trade and investment opportunities in the Northern Zone. USTDA also plans to organize three related business roundtable workshops on the Internet portal and specific project opportunities in the Northern Zone.

USTDA’s DR-CAFTA Trade Integration Initiative was launched in 2005 to support priority projects in the Dominican Republic and Central America that further the benefits of increased trade, regional connectivity and economic growth under DR-CAFTA. To date, USTDA has invested over $8 million under the Initiative in support of the region’s National Trade Capacity Building Strategies.

The opportunity to provide the USTDA-funded technical assistance to the Municipality of Chalatenango under the grant awarded will be competed on the Federal Business Opportunities (FBO) Web site. Interested U.S. firms should submit proposals according to the details in the Federal Business Opportunities announcement. The Municipality of Chalatenango will select a U.S. firm to provide the assistance associated with the USTDA grant.

Senator John Cornyn (R-Texas), a member of the Senate Armed Services Committee, introduced legislation last week to impose further U.S. sanctions against Syria and maintain sanctions currently in place until Syria meets certain criteria.

Under the Syria Accountability and Liberation Act (SALA), sanctions would continue until Syria ceases its support for terrorism, dismantles its various weapons of mass destruction programs, recognizes the right to exist of neighboring countries in the Middle East, and shows that it values the human rights and civil liberties of its own people. The bill would also seek to apply additional diplomatic pressure in several areas.

“This legislation will send a strong message to the Syrian regime that it’s threatening and irresponsible actions will not be tolerated by the United States,” Sen. Cornyn said. “The Syrian regime is a destabilizing influence in the Middle East region, and it must not be allowed to take steps towards attaining nuclear weapons. U.S. policy towards Syria must reflect that priority.”

He added, “Syria’s failure to control its eastern border with Iraq has resulted in increased numbers of al Qaeda and other foreign terrorists flowing into Iraq, where they continue to murder innocent Iraqi civilians and take the lives of American troops. This is clear evidence that Syria is neither a friend of the U.S. nor a trusted partner in the War on Terror.”

The Senate bill is similar to one first introduced in the U.S. House of Representatives by U.S. Rep. Ileana Ros-Lehtinen (R-Fla.), the ranking Republican on the House Foreign Affairs Committee.

The Syria Accountability and Liberation Act (SALA) would also do the following:

• Require the President to impose specified sanctions against countries and individuals who transfer materials that aid Syria’s efforts to obtain weapons of mass destruction and their delivery systems, as well as any person who invests $5 million or more in aiding Syria’s ability to develop oil or gas resources.
• Require specific diplomatic actions intended to isolate the government of Syria.
• Clearly set out that U.S. policy is to support the emergence of a democratic government in Syria that does not pose a threat to the United States, U.S. interests, and U.S. allies.

On April 24, U.S. Senators Bob Casey (D-Pa.) and Debbie Stabenow (D-Mich.) introduced a bill intended to help decrease the risk of accidentally importing invasive pests or diseases while also securing more open trade for U.S. agricultural exporters. The Agriculture Smart Trade Act seeks to ensure that  there is a plan to prevent invasive species from getting into the United States and aims to provide some assurance that the United States will not face unjustified trade barriers once a trade agreement is in place.

“Increased international trade means an increased risk of importing bugs and diseases that can have devastating effects,” said Sen. Casey. “This bill will help acknowledge the risk and put in place the best safeguards so that we can prevent the accidental introduction of these harmful pests.”

“Any comprehensive trade policy must improve product safety and put American businesses and families first,” Sen. Stabenow commented. “This legislation places a premium on the health and safety of our nation’s consumers and helps ensure that the agricultural sector of our economy remains strong and protected from invasive species.”

The Agriculture Smart Trade Act would require the Administration, within 90 days of starting formal negotiations with a potential trade partner, to send a report to Congress detailing potential invasive pests and disease that could pose a risk to U.S. agriculture. The bill also would require the Administration to disclose in the same report all sanitary and photosanitary trade barriers that could unduly restrict export markets for American commodities.

Specifically, the report would list:

• all the domestic crops and livestock that could be affected by invasive pests and diseases;
• a plan for preventing the introduction of invasive pests and diseases, including the estimated cost for implementing such a plan;
• all SPS measures that could affect the export of U.S. agriculture commodities to the trading partner;
• an estimate of the economic potential for U.S. exports if the trade agreement enters into force; and
• an assessment of the effect of SPS measures imposed by the trading partner on the economic potential of U.S. exports.

The Office of the United States Trade Representative (USTR) released its annual “Special 301″ Report on Friday on the adequacy and effectiveness of intellectual property rights (IPR) protection by U.S. trading partners.

“The Special 301 Report spotlights one of the central challenges facing the global economy,” said Ambassador Susan C. Schwab. “Pirates and counterfeiters don’t just steal ideas; they steal jobs, and too often they threaten our health and safety. The Administration has been committed to stepping up the fight against IPR infringers who seek to profit from American artists, inventors, and entrepreneurs.”

Continuing Concerns in China and Russia

Again this year, USTR’s Special 301 Report highlights serious IPR concerns with respect to China and Russia, in spite of some evidence of improvement in both countries.

“We continue to work with our Chinese and Russian colleagues to ensure that they deliver on their commitments to improve intellectual property protection and enforcement,” said Schwab. “Our bilateral engagement with China, Russia and other trading partners complement our efforts to enforce our rights through the WTO. The Administration will continue to defend vigorously American innovation.” She continued, “U.S. leadership remains critical to improving the global IPR climate.”

China

China will remain on the Priority Watch List, and the USTR will continue monitoring China under Section 306 of the 1974 Trade Act, thus maintaining pressure on China to improve its IPR situation. High levels of copyright piracy and trademark counterfeiting remain serious concerns. At the same time, the United States is also using the World Trade Organization (WTO) dispute settlement process to address a number of specific deficiencies in China’s IPR regime.

Russia

The United States also continues to work for improvements to the intellectual property regime in Russia. Although Russia has made some progress — for example, in moving optical disc factories off of government-controlled sites and raiding unlicensed factories — large-scale production and distribution of IP-infringing optical media and Internet piracy remain significant problems. The United States will continue to monitor to ensure that Russia moves to implement a variety of legal and law enforcement improvements to which it committed as part of a bilateral agreement on Russia’s accession to the WTO. Implementation of these commitments remains essential to completing the final multilateral negotiations on the overall accession package.

Improvements Noted for Several Trading Partners

The Special 301 Report also provides an opportunity to recognize trading partners whose efforts to improve intellectual property protection and enforcement are delivering results both for home-grown innovators in those countries and for U.S. rights holders. Egypt, Lebanon, Turkey, and Ukraine are being moved to the Watch List (from the Priority Watch List), reflecting improvements in each country’s IPR regime. Two other trading partners — Belize and Lithuania — are being removed from the Special 301 Report altogether.

This year’s Special 301 Report places forty-six (46) countries on the Priority Watch List, the Watch List, or the Section 306 monitoring list. There are nine countries on this year’s Priority Watch List: China, Russia, Argentina, Chile, India, Israel, Pakistan, Thailand, and Venezuela. Countries on the Priority Watch List in the estimation of the U.S. government do not provide an adequate level of IPR protection or enforcement, or market access for persons relying on intellectual property protection, in absolute terms or relative to a range of factors, such as their level of development. Priority Watch List countries will be the subject of particularly intense engagement through bilateral discussion during the coming year.

Thirty-six trading partners are on the Watch List, meriting bilateral attention to address IPR problems: Algeria, Belarus, Bolivia, Brazil, Canada, Colombia, Costa Rica, Czech Republic, Dominican Republic, Ecuador, Egypt, Greece, Guatemala, Hungary, Indonesia, Italy, Jamaica, Kuwait, Lebanon, Malaysia, Mexico, Norway, Peru, Philippines, Poland, Republic of Korea, Romania, Saudi Arabia, Spain, Taiwan, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan, and Vietnam.

The Administration will conduct Out-of-Cycle Reviews for Taiwan and Israel to assess progress on specific IPR issues. It is looking forward to additional action in the coming months on the IP reforms identified as key priorities by the Government of Canada.

Paraguay will continue to be subject to Section 306 monitoring under a bilateral Memorandum of Understanding that establishes objectives and actions for addressing IPR concerns in that country.

On October 23, 2007, USTR Susan Schwab announced that the U.S. government will seek to negotiate an Anti-Counterfeiting Trade Agreement (ACTA). The ACTA is envisioned as a leadership effort among trading partners that will raise the international standard for IPR enforcement.

Despite some encouraging developments, the detailed country discussions in the Special 301 Report make clear that numerous IPR problems persist around the world. Trade in counterfeit pharmaceuticals continues to be a particularly grave concern, and the United States continues to be actively engaged in addressing this serious problem. The Administration also intends to remain focused on combating large-scale piracy of optical media and the widespread counterfeiting of trademark-protected consumer and industrial goods.

Last week, Hanjin Shipping announced the launch of its new SNA (South and North America) service with K-Line, Yang Ming, and CSAV, effective from the end of April.

Replacing the current NSA (New South America) service, which is operated by Hanjin Shipping, K-Line, Yang Ming, and Hyundai Merchant Marine with 4 1,800-TEU class ships, the new SNA service will be jointly operated by a new line of partners, including Hanjin Shipping, K-Line, Yang Ming, and CSAV, with 5 2,500-TEU class vessels covering a wider range of ports on South America’s East Coast and the U.S. East Coast.

Hanjin Shipping states that the launch of this new SNA service with its partner carriers will enable the company to enhance its presence in the South American market and also upgrade its customer service by supplying stable vessel space and schedule to customers in the North and South American trade.

The port rotation for SNA service will be New York - Baltimore - Norfolk - Charleston - São Francisco - Santos - Rio de Janeiro - Salvador - Puerto Cabello - New York.

The U.S.-India Business Council (USIBC) has released the 2008 USIBC Business Perception Survey. The survey, designed by Ernst & Young and administered by USIBC, polled senior member-company executives to gauge their perception of India as a destination for investment and to identify progressive steps which will further enhance investor interest and confidence in India.

The survey findings indicate that a majority of respondents view India as an attractive investment destination vis-à-vis other emerging economies, with a large number of respondents rating future economic growth as highly sustainable. Further, a large section of respondents answered in the affirmative regarding their plans to invest in India in order to establish or expand their operations over the next 5 years.

Releasing the 2008 USIBC Business Perception Survey at the World Intellectual Property Day event in Delhi, Utkarsh Palnitkar, Ernst & Young, Partner–Transaction Advisory Services and Head of Policy & Investment Advisory Services, stated, “This is an important study. Its findings demonstrate the depth of commitment of USIBC member companies to India’s continued economic growth. The news is quite positive — provided that the government addresses several critical issues, USIBC member company executives expect India’s robust economic growth to continue despite the uncertainties facing other global markets.”

However, while the survey findings suggest that the Indian economy will continue to attract global investor interest, much needs to be done for it to become more investor friendly. Respondents highlighted the need to improve the ease of doing business in India along with the need to enhance India’s social, physical and urban infrastructure. In order to drive investor confidence and lower the risk faced by business establishments, the survey findings emphasized the need to strengthen India’s intellectual property regime vis-à-vis other emerging Asian economies.

Mr. Palnitkar went on to note, “Today is World Intellectual Property Day. It’s appropriate to point out that the 2008 USIBC Business Perception report confirms beyond a doubt that the Indian government needs to further strengthen intellectual property protection. In this area India is losing ground to other emerging Asian economies and the government ignores this at India’s peril. The ineffectiveness of India’s patent laws, the continuing lack of data exclusivity, and a lack of expedient and effective enforcement mechanisms are causing India to lose out when it comes to investment in R&D. This should be a wake-up call to those who assert that India’s intellectual property protections are ‘world class’. This cross-industry study makes it clear that this is not a view widely shared by those who make decisions about where to invest in R&D.”

USIBC is working in tandem with the U.S. Chamber’s Global Intellectual Property Center to strengthen IP protection and to stem counterfeiting and piracy world-wide. The full 2008 USIBC Business Perception Survey is available at www.usibc.com.

The U.S.-India Business Council, formed in 1975 at the request of the Government of India and the U.S. Government to advance U.S.-India commercial ties, is hosted under the aegis of the U.S. Chamber of Commerce. The U.S. Chamber of Commerce is the world’s largest business federation, representing more than 3 million businesses and organizations of every size, sector, and region.

Five organizations in the state of Washington will receive federal assistance as they work to expand economic opportunities for farmers and develop more efficient farming practices.

U.S. Department of Agriculture (USDA) Specialty Crop Block Grants are designed to promote the profitability and improve the production of fruits, vegetables, and nursery crops. Washington is the third leading producer of specialty crops in the country.

“Washington growers produce the finest foods found anywhere in the world,” said Valoria Loveland, director of the Washington State Department of Agriculture (WSDA). “Although these grants are not huge, they will provide seed money to develop tools and business relationships that will pay dividends down the road. When Congress adopts the new Farm Bill, we anticipate that the level of specialty crop grant awards could increase substantially in future years.”

The successful grants applicants are sharing $164,000 in funding. Each project must be funded in part by the applicant and be aimed at specific projects with achievable results. This year’s grants were awarded to:

• Washington Apple Commission ($26,500) to provide training to six supermarket chains in produce department layout and produce handling in China. The project will design a model produce section and conduct promotions of Washington produce. Washington produces 90% of the country’s exported apples.
• Hop Growers of America ($40,000) to help fund industry’s participation in the Brau Trade Fair in Nuremburg, Germany. Washington is the leading producer of hops in the U.S., and the grant will help local growers increase sales to European brewers.
• Organic Seed Alliance ($33,000) to develop a national market for specialty grown organic vegetable seed and launch the Growers Organic Seed Cooperative. The new producer-owned cooperative will enhance the quality of seed, increase organic seed farm income and help organic producers across the country comply with National Organic Program requirements for use of certified organic seed.
• Northwest Agriculture Business Center ($35,433) to conduct test marketing of a sparkling apple-berry juice and a packaged loose-leaf tea from Washington. The two beverages will be developed by Skagit Valley Apple Growers Association and Sakuma Brothers.
• Washington State Potato Commission ($29,255) to create a training program for safe, effective operation of chemigation systems in potato fields. The new training program is aimed at increasing product efficacy and reducing the risk of off-site applications and human exposure.

After reviewing this year’s grant applications and receiving input from an industry advisory panel, WSDA selected the projects for inclusion in a single Washington State grant application. USDA has given final approval of the state’s application.

On April 28, the U.S. Department of Homeland Security (DHS) announced changes aimed at strengthening aviation security while decreasing the hassle factor for travelers. Among the key changes, DHS is providing airlines more flexibility to allow remote check-in for passengers who have been unable to do so remotely because they have a name similar to someone on a watch list. The department also unveiled the Checkpoint Evolution prototype, which began full operation at Baltimore-Washington International Airport (BWI) yesterday.

Each airline will now be able to create a system to verify and securely store a passenger’s date of birth to clear up watch list mis-identifications. By voluntarily providing this limited biographical data to an airline and verifying that information once at the ticket counter, travelers that were previously inconvenienced on every trip will now be able to check-in online or at remote kiosks.

“Hassles due to misidentification and the resulting necessity to stand in line to check in at the ticket counter is consistently among the deepest— and most valid — complaints of the traveling public,” said Homeland Security Secretary Michael Chertoff. “Thousands of passengers are inconvenienced each day, and this change should provide a way to eliminate the vast majority of these situations. This is good for travelers and for security, because as we make the checkpoint environment calmer, it becomes easier to spot individuals with hostile intent.”

Additionally, DHS is providing greater clarity on the types of identification that will be accepted at checkpoints in the United States. Beginning May 26, 2008, a federal or state-issued photo ID will be accepted if it contains the following: name, date of birth, gender, expiration date, and a tamper-resistant feature. Standardizing the list of accepted documents is aimed at providing a better alignment between TSA and other DHS components and REAL ID benchmarks. More information on acceptable documents is available at www.tsa.gov.

The BWI Checkpoint Evolution prototype includes Millimeter Wave technology used in random continuous use, multi-view X-ray, and liquid bottle scanners. These technologies, in conjunction with changes to the checkpoint environment and processes, will be evaluated for operational efficiency over the coming months.

Transportation Security Officers and managers at BWI are the first in the country to complete a 16-hour training module designed to incorporate the latest intelligence analysis, more advanced explosives detection skills, and ways to engage with passengers to promote a calmer environment for better security. The training was developed by the Transportation Security Administration’s Office of Intelligence, Bomb Appraisal Officers, and TSA Checkpoint Evolution team.

Checkpoint Evolution is located at B Checkpoint, Southwest Terminal at BWI. The layered security elements are designed to work individually, as well as part of an integrated package.