Geneva,
February 7, 2012

Thank you, Chair.

The United States is pleased to participate in Kuwait’s first Trade Policy Review.  We welcome the convening of this long-delayed initial trade policy review of Kuwait, because we believe that the transparency obtained from TPRs is important for the WTO and for the Members subject to the review. We hope that this review will be a positive experience for Kuwait and that future reviews can occur within appropriate timeframes.  We extend a warm welcome to Ambassador Dharar A. R. Razzooqi and the entire Kuwait delegation.  We appreciate the report that your delegation submitted for this meeting, which provides useful information on developments in, and contributes to the transparency of, Kuwait’s trade policy regime and practices. The Secretariat’s report was similarly informative and comprehensive.  I would also like to thank our discussant, Ambassador Shahid Bashir, for his meaningful contributions to this important TPR for Kuwait.

The United States and Kuwait enjoy a broad, deep and robust bilateral relationship, with cooperation spanning many of the economic and security issues confronting the Middle East and the world.  On the commercial front, our bilateral trade is expanding.  In 2010, the U.S. exported almost $3 billion in goods to Kuwait, up more than 42 percent from 2009, and imported more than $5 billion in goods from Kuwait, also up more than 42 percent from 2009.  Additionally, U.S. foreign direct investment in Kuwait was almost $2 billion in 2010.

While Kuwait has reason to be pleased with the results of its economic reform efforts to date, the United States believes that there are areas for improvement.  We commend the Government of Kuwait for acknowledging the value of modernizing its business environment, tackling excessive administrative and procedural obstacles to doing business, and increasing the transparency, accountability and effectiveness of government administration, and we look forward to hearing more about the steps the government is taking in this regard.

In its report, the government outlines its efforts to diversify Kuwait’s economy and efforts to address other structural issues that have come to characterize the nation’s economy and life, including by enacting new laws or amending existing laws and regulations.  Given that foreign investors tend to favor locations that provide strong and effective intellectual property protection, we hope that these legislative changes will also address the concerns that we have raised regarding Kuwait’s intellectual property laws, particularly the 1999 Copyright Law.  We encourage Kuwait to take appropriate steps to address current high levels of copyright piracy and to bring its legislation into full compliance with TRIPs obligations. Such measures would help Kuwait enhance its status as an investment destination.

On investment, we encourage Kuwait to carefully consider the impact of its existing investment restrictions on the investment climate.  For example, we urge Kuwait to think seriously about whether restrictions on the ability of non-Kuwaiti citizens to pursue commercial activities in Kuwait without a Kuwaiti partner and the ability of non-Kuwaiti partners to own more than 49% of the company’s capital – are helping Kuwait to fulfill its potential as an attractive investment destination.

The United States would also like to note the key role that a fair and transparent government procurement regime can also play in attracting foreign investment.  We urge Kuwait to become an observer to the WTO Committee on Government Procurement.  In addition, since the revision of the Government Procurement Agreement (GPA) that was agreed upon at the WTO Ministerial in December 2011 will facilitate accession to the GPA, we strongly encourage Kuwait to commence accession to the GPA as soon as possible.

In the modern international economy, the information and communications technology (ICT/telecom) sector continues to grow in importance, not only for mobile telephones and the Internet, but for ICT’s impact on all economic sectors – from finance to hydrocarbons, from transportation to health care.  We encourage Kuwait to deepen development in its ICT sector through reform and the strengthening of an autonomous and accountable regulatory authority.  International experience shows that a strong independent ICT regulator is essential to creating a competitive market and a legal environment conducive to foreign and private investment, economic growth, modernization, anti-corruption measures, and establishment of responsive social services such as e-Government, e-Education, e-Medicine, and e-Administration.  Along with Kuwait’s oil and gas sector, its ICT sector has a growing impact on its own economy, the region of the Middle East and North Africa and the world.

We would also like to highlight the complex nature of Kuwait’s import regime.  As the Secretariat’s report notes, foreign entities may only establish a branch in Kuwait and may only pursue commercial activities in Kuwait through a Kuwaiti agent.  The Secretariat’s report also notes a requirement for documents to be authenticated and consular fees to be paid on commercial invoices.  The interplay of these types of requirements seems highly burdensome, and we hope Kuwait will shed light on these practices and the scope of their application during the course of this review.

Another important issue relates to notifications, an important aspect of our work here at the WTO because notifications provide transparency that is essential to the operation of WTO agreements, including the ability of Members to assess if substantive obligations are being respected. The United States notes that up to mid-October 2011, Kuwait had made only 69 notifications of standards and technical regulations to the WTO.  We would like to urge Kuwait to ensure that all such regulations and standards are notified to WTO Members as required by the TBT and SPS Agreements. It is of utmost importance that the notifications include draft versions of the regulations, that they be issued with enough advance notice that stakeholders have sufficient time to review and comment on them, and that Kuwaiti authorities can take those comments into account before finalizing the regulation or standard.  The United States has found that consultation with, and involvement by, all interested parties in the regulatory process leads to rules and regulations that better meet their objectives while minimizing trade distorting effects.  We encourage Kuwait to update or submit its notifications, as appropriate. 

We also request that Kuwait, as well as its GCC partners, complete their review of the Secretariat’s Factual Presentation on the GCC Customs Union, so that it can be reviewed in the Committee on Regional Trade Agreements.

In general, the United States continues to be concerned about the lack of transparency in Kuwait’s trade policy regime, which has led us to ask Kuwait so many written questions for this TPR.  We, ourselves, became increasingly surprised at how many matters we found to be important and for which we were unable to obtain answers independently.  The institutional value of the TPRM in enhancing the WTO’s core principle of transparency came into sharp focus. We thank Kuwait in advance for its efforts to respond to our questions, and we plan to review its responses carefully and request clarifications as necessary during the course of this TPR.

The United States encourages Kuwait to take advantage of the opportunities to implement meaningful economic reforms, which, as experience has shown, will significantly advance Kuwait’s objectives of inclusive growth and economic development.  The United States joins other WTO Members in supporting Kuwait’s use of an open trade policy to fulfilling these broader objectives.

In conclusion, Chair, the United States shares a positive and supportive partnership with Kuwait, and we hope that Kuwait will find this review to be useful in its reform efforts and in its participation at the WTO.

Thank you.

Deputy Secretary of State William J. Burns in a 2010 photo

Washington ,
January 30, 2012

The United States has a strong commitment to Africa, and U.S. Deputy Secretary of State William J. Burns spent a week visiting several countries on the continent to reinforce that message.

Burns said he made the trip to emphasize U.S. ties to African partners and the commitment “to seize opportunities and address common challenges.” He noted especially meeting with a cross section of young leaders, “who are engaged in dynamic work in every sector of society.”

Speaking to journalists on the margins of the African Union’s summit in Addis Ababa, Burns noted U.S. “work to support gains in democratic governance, sustainable development, economic growth and the peaceful resolution of conflict.” He highlighted ongoing efforts to strengthen commercial ties between the United States and Africa.

U.S. activities in Africa are directed toward meeting the continent’s short-term and long-term needs, Burns said. The humanitarian crisis in East Africa, where upwards of 13 million people need emergency assistance, has received $870 million in U.S. relief, while the United States also supports initiatives to help African farmers achieve greater food security and increase resistance to annual setbacks such as drought. The Obama administration’s Feed the Future initiative supports that goal with a commitment of $3.5 billion in assistance over three years.

During the course of his tour, Burns visited a public-private project that demonstrates delivery of U.S. assistance for both the short and long term. At a health clinic run at Wagagai Flower Farm in Uganda, patients can receive treatment for health issues while the clinic addresses long-term health needs through vaccination and preventive health programs. The Wagagai clinic is just one clinic of more than 100 health facilities in Uganda supported by the United States. Health programs in Africa will receive $63 billion over five years.

Delivering remarks at the Wagagai clinic January 27, Burns said, “Clinics like this one are an essential part of the solution, and an essential part of a more hopeful future for Uganda.”

Burns also went to Ghana, a country that is “setting the standard in economic development” with policies for economic growth, solid investment potential and responsible energy management. Because of these sound policies, Ghana is one of only four countries worldwide to participate in a new U.S.-backed program called Partnership for Growth, which aims to help nations speed up economic growth and sustain it.

Appearing with Burns on January 26, Ghanaian President John Mills welcomed the U.S. support his country has received.

“Our duty as a government is to make even the investment climate more active, more rewarding and in fact more accommodating,” Mills said.

Burns also praised the contributions Ghana has made to international peacekeeping missions.

Burns visited Ghana, Uganda, South Sudan and Ethiopia.

Japan and the United States have made important progress on a range of trade and regulatory issues as well as on new areas of joint cooperation that will expand trade opportunities for producers and consumers in both countries.

Today’s report is a tremendous victory for the United States – particularly its manufacturers and workers.

U.S. Trade Representative Ron Kirk Announces U.S. Victory in Challenge to China’s Raw Materials Export Restraints
Washington, D.C.
January 30, 2012

U.S. Trade Representative Ron Kirk today announced that the World Trade Organization (WTO) Appellate Body found China’s export restraints on several industrial raw materials used as key components in the steel, aluminum, and chemicals industries to be inconsistent with China’s WTO obligations.  The Appellate Body affirmed a WTO dispute settlement panel’s July 2011 finding, therefore agreeing with the United States and rejecting China’s attempts to portray its export restraints as conservation or environmental protection measures or measures taken to manage critical shortages of supply.

“Today’s report is a tremendous victory for the United States – particularly its manufacturers and workers,” Ambassador Kirk said.  “The Obama Administration will continue to ensure that China and every other country play by the rules so that U.S. workers and companies can compete and succeed on a level playing field.  During his State of the Union Address last week, the President laid out a  blueprint for an economy that’s built to last – an economy built with the renewed strength of American manufacturing.  Today’s decision ensures that core manufacturing industries in this country can get the materials they need to produce and compete on a level playing field.”

The export restraints challenged in this dispute include export quotas and export duties, as well as related minimum export price, export licensing, and export quota administration requirements.  The raw materials at issue include various forms of bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, yellow phosphorus, and zinc.  Export restraints on these types of industrial products can skew the playing field against the United States and other countries in the production and export of numerous steel, aluminum and chemical, and a wide range of other products.  They can artificially increase world prices for these raw materials while artificially lowering prices for Chinese producers.  This enables China’s domestic producers to produce lower-priced products from the raw materials and thereby creates significant advantages for China’s producers when competing against U.S. and other producers, both in China’s market and other countries’ markets.  Such export restraints can also create substantial pressure on foreign producers to move their operations and, as a result, their technologies to China.

The European Union and Mexico joined the United States as co-complainants in the dispute.  Upon a U.S. request, the WTO Dispute Settlement Body (DSB) will adopt the panel and Appellate Body reports within 30 days and call for China to bring its measures into compliance with its WTO obligations.

BACKGROUND

On June 23, 2009, the United States requested WTO dispute settlement consultations with China regarding export restraints maintained by China on various forms of bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, yellow phosphorus, and zinc.  On the same day, the European Union also requested consultations with China.  On August 21, 2009, a third WTO Member, Mexico, requested consultations with China.  On December 21, 2009, a single WTO panel was established to examine the three complaints.  Argentina, Brazil, Canada, Chile, Colombia, Ecuador, India, Japan, Korea, Norway, Saudi Arabia, Chinese Taipei, and Turkey joined as third parties in the dispute.

The panel found that the export duties and export quotas that China maintains on various forms of bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, and zinc constitute a breach of WTO rules and that China failed to justify those measures as legitimate conservation measures, environmental protection measures, or short supply measures.  The panel also found that China’s imposition of minimum export price, export licensing, and export quota administration requirements on these materials, as well as China’s failure to publish certain measures related to these requirements, is inconsistent with WTO rules.

On August 31, 2011, China appealed certain aspects of the panel’s report.  On September 6, 2011, the United States and its co-complainants filed limited cross appeals on certain procedural and other findings made by the panel.  A hearing took place before the WTO’s Appellate Body on November 7-9, 2011.  In its report, the Appellate Body rejected China’s appeal and confirmed that:  China may not seek to justify its imposition of export duties pursuant to the exceptions provided in Article XX of the GATT 1994; China failed to demonstrate that certain of its export quotas were justified as measures for preventing or relieving a critical shortage under Article XI:2(a) of the GATT 1994; and the Panel correctly made recommendations for China to bring its measures into conformity with its WTO obligations.  The Appellate Body also found that the Panel erred:  in making findings related to licensing and administration claims identified in Section III of the U.S. panel request, declaring those findings moot; and in the Panel’s legal interpretation of one element of the exception set forth in Article XX(g) of the GATT 1994 (China did not appeal the Panel’s conclusion that China had failed to establish a defense under Article XX(g)).

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Commerce Secretary John Bryson said the latest gross domestic product growth is encouraging, but it is important to remain focused on finding long-term economic solutions.

By MacKenzie C. Babb
IIP Staff Writer
Washington,
January 27,  2012

The U.S. economy grew by 2.8 percent from October to December, marking the 10th straight quarter of positive growth and bringing expansion of the country’s gross domestic product up to 1.7 percent for 2011, according to the Commerce Department.

The department’s Bureau of Economic Analysis released its advance estimate of U.S. gross domestic product (GDP) gains January 27. The GDP, which measures a country’s total output of goods and services, serves as a primary indicator of economic health.

“Today’s report is another indication that our economy is moving in the right direction and we are gaining strength,” Commerce Secretary John Bryson said.

White House Council of Economic Advisers Chairman Alan Krueger said that although the report showed progress, much work is still needed to get the U.S. economy back on track.

“While the continued expansion is encouraging, faster growth is needed to replace the jobs lost in the recent downturn and to reduce long-term unemployment,” Krueger said in a January 27 statement.

He said the increase in GDP reflects positive contributions from private inventory investment, personal consumption expenditures, residential fixed investment and nonresidential investment.

Exports of goods and services grew by 4.7 percent during the three-month period, adding significantly to the growth.

Counting against growth in calculating the GDP was a 4.4 percent rise in goods and services imports. Overall government purchases also fell by 4.6 percent, with substantial declines in federal defense spending (12.5 percent) and state and local government spending (2.6 percent).

Bryson said the United States must “remain focused on the elements of an economy built to last,” a reference to the economic blueprint announced by President Obama during his State of the Union address to Congress January 24. The new plan calls for the country to build a forward-looking economy based on manufacturing, energy, and education and training for American workers.

The GDP figures for the October to December period, as well as for the whole of 2011, will be revised based on new data and released February 29, according to the Commerce Department. A second revision will come out March 29.

The advance report came days after Federal Reserve Chairman Ben Bernanke said the U.S. economy is continuing to expand despite some slowing in global growth. He told reporters January 25 that the Federal Open Market Committee, the central bank’s policymaking arm, projects U.S. gross domestic product to continue to grow moderately during coming quarters, reaching between 2.2 percent and 2.7 percent for 2012.

Students in Dar es Salaam, Tanzania, brainstorm ideas for the Apps4Africa Climate Challenge.

By Louise Fenner
IIP Staff Writer
Washington,
January 27, 2012

Innovative ideas for managing grain supplies in Tanzania and for helping hospitals in Nigeria prepare for natural disasters won top prizes in the Apps4Africa Climate Challenge. But the competition isn’t over yet. It moves to Southern Africa starting February 1.

Apps4Africa challenges software developers to create applications for mobile phones and computers to help communities cope with the impact of climate change. The competition encompasses three regions of Africa, and the first two regions — East Africa and West and Central Africa — competed late last year. In addition to Tanzania and Nigeria, there are winners from Ghana, Kenya, Senegal and Uganda.

The U.S. State Department is sponsoring the competition in partnership with private sector and nongovernmental organizations. The results of the Southern Africa competition, which lasts through March 21, will be announced in April.

The first two regional competitions had a combined total of nearly 200 entries, said AAAS (American Association for the Advancement of Science) Science & Technology Fellow Jeffrey Fox, who coordinated the Apps4Africa Climate Challenge for the State Department.

The State Department and Appfrica International, the software development company that ran the contests from its offices in Uganda and the United States, screened the entries to make sure they addressed climate change adaptation, and then sent the relevant submissions to five independent judges. The winning applications were chosen based on their technical ingenuity and their ability to have a measurable impact on climate change adaptation.

“So many [applications] sounded like incredible ideas,” said Fox. “There were a lot of very strong entries.” In the East Africa competition, the winning applications “support ‘climate-smart’ agriculture, which in the region is a huge issue,” he said.

In the West and Central Africa region, “the [application] winner dealt with disaster management and health care” — issues that frequently came up during local brainstorming sessions held in connection with the competition. The sessions brought together software developers, students, nongovernmental organizations, business people and others to identify climate problems and propose solutions.

“Applications that address the challenges that are most important locally are the ones that end up being selected,” he said.

WINNERS IN EAST AFRICA AND WEST AND CENTRAL AFRICA

In the East Africa competition, first place went to The Grainy Bunch, a national grain supply chain management system that monitors the purchase, storage, distribution and consumption of grain across Tanzania.

Mkulima Calculator of Kenya took second place with an application that will help farmers decide when to plant crops and how to select the best crops for a given location using climate and weather data. Third place was awarded to Agro Universe, a mobile and Web-based app from Uganda that creates a regional marketplace, helping communities prepare for pest- and drought-induced food shortages by linking these communities to farmers with available produce.

In the West and Central Africa competition, first prize went to HospitalManager, a Web-based application from Nigeria that will help hospitals plan for increased patient loads following extreme weather events such as storms, floods and heat waves. Hospitals can identify patterns in patient visits during weather emergencies and use real-time climate forecasts to prepare for such situations and save more lives.

Second place went to the Eco-fund Forum, a Web-based app from Senegal that helps communities share successful strategies for adapting to local impacts of climate change. The third-prize winner was Farmerline, a mobile and Web-based app that will help farmers in rural Ghana obtain information they need to increase yields in the face of changes in the growing season and climate variability.

The top three winners in each region receive cash prizes, and private partners are contributing follow-on support. The competition is open only to residents of Africa, but people and organizations outside of Africa can register as mentors and provide their expertise to applicants.

See the Apps4Africa website for more information.

In his address Obama cited "a wave of change" that has washed across the Middle East and North Africa

By Stephen Kaufman,
IIP Staff Writer
Washington,
January 24, 2012 

Washington — President Obama, in his 2012 State of the Union address, outlined his vision for America’s future.

As the United States recovers from an economic recession, Obama said January 24, it needs “an economy built to last” that will support all who want to work, as well as risk-takers and entrepreneurs who will create new jobs in startup companies and small businesses.

“It’s time to apply the same rules from top to bottom: No bailouts, no handouts and no cop-outs. An America built to last insists on responsibility from everybody,” he said.

The president’s remarks came after months of protest by the “Occupy” movements in several cities across the United States, as well as statements by billionaire investor Warren Buffett and others who have highlighted the growing gap in earnings between wealthy Americans and most of their fellow citizens.

Obama warned U.S. banks and financial institutions that in the aftermath of a recession caused by risky investments, new laws now require them to describe exactly how they would pay back bad investments “because the rest of us are not bailing you out ever again.”

“We don’t begrudge financial success in this country. We admire it,” Obama said. But he added that the wealthiest Americans need to pay their fair share of taxes rather than increasing the U.S. national deficit or forcing those with less means to make up the difference.

Americans “know that this generation’s success is only possible because past generations felt a responsibility to each other and to the future of their country, and they know our way of life will only endure if we feel that same sense of shared responsibility,” he said.

U.S. STANDS FOR UNIVERSAL RIGHTS AND DIGNITY

In his remarks on U.S. foreign policy, the president said “a wave of change” has washed across the Middle East and North Africa in the form of Arab uprisings against despotic governments and, although the United States cannot predict how the region’s transformation will end, it has a huge stake in the outcome.

“While it is ultimately up to the people of the region to decide their fate, we will advocate for those values that have served our own country so well. We will stand against violence and intimidation. We will stand for the rights and dignity of all human beings — men and women; Christians, Muslims, and Jews. We will support policies that lead to strong and stable democracies and open markets because tyranny is no match for liberty,” Obama said. 

The president welcomed the fall of Libya’s Muammar al Qadhafi, and said that the regime led by Syria’s Bashar al-Assad “will soon discover that the forces of change can’t be reversed, and that human dignity can’t be denied.”

For the first time since 2003, there are no Americans fighting in Iraq, he said, and May 2011 saw the death of al Qaeda leader Osama bin Laden and the end of his threat to the United States and other countries around the world.

In Afghanistan, the United States has begun to wind down the war and transition responsibility for the country’s security to Afghan authorities. Obama said the United States is building an “enduring partnership with Afghanistan, so that it is never again a source of attacks.”

The president also warned Iran that the world is united in its response to the country’s nuclear activities, and that as long as Iran’s leaders shirk their responsibilities to the international community, the global pressure against them “will not relent.”

“America is determined to prevent Iran from getting a nuclear weapon, and I will take no options off the table to achieve that goal,” Obama said. “But a peaceful resolution of this issue is still possible, and far better, and if Iran changes course and meets its obligations, it can rejoin the community of nations.”

The U.S. Constitution requires the president to periodically inform the Congress on “information of the state of the union,” and to recommend “measures as he shall judge necessary and expedient” for their consideration. During an election year, the speech is also an opportunity for the president to put forward his vision in a manner that contrasts with those of his likely opponents.

The constitutional requirement has evolved into an annual televised address to the Congress, members of the Cabinet and U.S. Supreme Court, U.S. military leaders and other invited guests. Obama will follow up on the speech by sending Congress a proposed budget for the 2013 fiscal year in which he will offer further details on his vision by specifying his spending priorities.

Read more: http://iipdigital.usembassy.gov/st/english/article/2012/01/20120124204023nehpets0.5087854.html#ixzz1kS3sYRqN

1. SURVEILLANCE OF IMPLEMENTATION OF RECOMMENDATIONS ADOPTED BY THE DSB

A.        UNITED STATES – SECTION 211 OMNIBUS APPROPRIATIONS ACT OF 1998:  STATUS REPORT BY THE UNITED STATES (WT/DS176/11/ADD.110)

The United States provided a status report in this dispute on January 9, 2012, in accordance with Article 21.6 of the DSU.

Legislative proposals have been introduced in the current 112th Congress that would implement the recommendations and rulings of the DSB.

The U.S. Administration will continue to work on solutions to implement the DSB’s recommendations and rulings.

B.        UNITED STATES – ANTI-DUMPING MEASURES ON CERTAIN HOT-ROLLED STEEL PRODUCTS FROM JAPAN:  STATUS REPORT BY THE UNITED STATES (WT/DS184/15/ADD.110)

The United States provided a status report in this dispute on January 9, 2012, in accordance with Article 21.6 of the DSU.

As of November 2002, the U.S. authorities had addressed the DSB’s recommendations and rulings with respect to the calculation of antidumping margins in the hot-rolled steel antidumping duty investigation at issue in this dispute.

With respect to the recommendations and rulings of the DSB that were not already addressed by the U.S. authorities, the U.S. Administration will work with the U.S. Congress with respect to appropriate statutory measures that would resolve this matter.

C.        UNITED STATES – SECTION 110(5) OF THE US COPYRIGHT ACT: STATUS REPORT BY THE UNITED STATES (WT/DS160/24/ADD.85)

The United States provided a status report in this dispute on January 9, 2012, in accordance with Article 21.6 of the DSU.

The U.S. Administration will continue to confer with the European Union, and to work closely with the U.S. Congress, in order to reach a mutually satisfactory resolution of this matter.

D.        EUROPEAN COMMUNITIES  – MEASURES AFFECTING THE APPROVAL AND MARKETING OF BIOTECH PRODUCTS:  STATUS  REPORT BY THE EUROPEAN UNION (WT/DS291/37/ADD.48)

The United States thanks the EU for its status report and its statement today.

Between today’s meeting and the last regularly-scheduled meeting in 2011, the EU approved four long-pending product applications, including three varieties of biotech maize.

Although the United States welcomes any movement in the EU system, these approvals hardly put a dent in the backlog of approximately 70 pending applications.

Further, the slow progress of these three maize applications illustrates U.S. concerns with the EU approval system.

The EU’s scientific authority issued positive safety assessments for these three varieties in May 2010, over 1 year and 8 months ago.

Under the EU’s legislation, these products should have been submitted to the EU’s regulatory committee within 3 months of May 2010.  The regulatory committee, which consists of EU member State representatives, should have proceeded to vote in accordance with the scientific assessments and approve the applications.

This, however, did not occur.  Instead, the applications were held up for well over a year in the EU’s approval process.  In all, the time taken after the scientific assessment – that is, from May 2010 until December 2011 – was 5 or 6 times longer than contemplated in the EU’s own law.

The delays for these products are unfortunately typical.  And as a result of such delays, U.S. maize products remain shut out of the EU market.

The United States hopes the EU will address these issues in the coming year.

E.         UNITED STATES – MEASURES RELATING TO ZEROING AND SUNSET REVIEWS:  STATUS REPORT BY THE UNITED STATES (WT/DS322/36/ADD.28)

The United States provided a status report in this dispute on January 9, 2012, in accordance with Article 21.6 of the DSU.

In December 2010, the Arbitrator in the proceeding under Article 22.6 of the DSU in this dispute issued a communication stating that it had accepted a joint request by the parties to the dispute to suspend its work.

On January 9, 2012, in response to a joint request of the United States and Japan, the Arbitrator issued a communication stating that it has decided to continue further the suspension.  The communication of the Arbitrator has been circulated to the DSB in document WT/DS322/42.

As the United States explained in its status report, in December 2010 the U.S.

Department of Commerce announced a proposal to change the calculation of weighted average dumping margins and assessment rates in certain antidumping proceedings.  At this time, the U.S. Department of Commerce is continuing with its ongoing work on the proposal.

F.         UNITED STATES – CONTINUED EXISTENCE AND APPLICATION OF ZEROING METHODOLOGY:  STATUS REPORT BY THE UNITED STATES (WT/DS350/18/ADD.25)

The United States has addressed the issue of compliance with the recommendations in this dispute in the status report provided on January 9, 2012, and earlier in today’s discussion of agenda item 1.E.  We refer Members to that report and statement for further details.G.        UNITED STATES – LAWS, REGULATIONS AND METHODOLOGY FOR CALCULATING DUMPING MARGINS (“ZEROING”):  STATUS REPORT BY THE UNITED STATES (WT/DS294/38/ADD.20)

The United States has addressed the issue of compliance with the findings in this dispute in the status report provided on January 9, 2012, and earlier in today’s discussion of agenda item 1.E.  We refer Members to that report and statement for further details. In addition, we note that in September 2010, the Arbitrator in the proceeding under Article 22.6 of the DSU in this dispute issued a communication stating that it had accepted a joint request by the parties to the dispute to suspend its work.

On January 16, 2012, in response to a joint request of the parties, the Arbitrator issued a communication stating that it has decided to continue the suspension.  The communication of the Arbitrator has been circulated to the DSB in document WT/DS294/42.
H.        CHINA – MEASURES AFFECTING TRADING RIGHTS AND DISTRIBUTION SERVICES FOR CERTAIN PUBLICATIONS AND AUDIOVISUAL ENTERTAINMENT PRODUCTS:  STATUS REPORT BY CHINA (WT/DS363/17/ADD.12)
The United States thanks China for its status report and its statement today.

As the United States has previously noted, we remain concerned by the lack of progress by China in bringing its measures relating to films for theatrical release into compliance with the DSB recommendations and rulings.

The United States also has significant concerns about the incomplete progress relative to China’s measures relating to audio visual home entertainment products, reading materials, and sound recordings.

The United States is conferring with China on these matters.  We hope that China will take steps to resolve this matter soon.

I.         UNITED STATES – ANTI-DUMPING ADMINISTRATIVE REVIEWS AND OTHER MEASURES RELATED TO IMPORTS OF CERTAIN ORANGE JUICE FROM BRAZIL:  STATUS REPORT BY THE UNITED STATES (WT/DS382/11/ADD.1)

Madam Chair, the United States provided a status report in this dispute on January 9, 2012, in accordance with Article 21.6 of the DSU.

As noted in the status report, the United States informed the DSB on June 17, 2011, of its intention to implement the DSB’s recommendations and rulings in this dispute.  Brazil and the United States agreed that the reasonable period of time to implement would expire on March 17, 2012.

As the United States explained in its status report, in December 2010 the U.S.

Department of Commerce announced a proposal to change the calculation of weighted average dumping margins and assessment rates in certain antidumping proceedings.  At this time, the U.S. Department of Commerce is continuing with its ongoing work on the proposal.

8.  PHILIPPINES – TAXES ON DISTILLED SPIRITS

A.        REPORT OF THE APPELLATE BODY (WT/DS396/AB/R) AND REPORT OF THE PANEL (WT/DS396/R)

B.        REPORT OF THE APPELLATE BODY (WT/DS403/AB/R) AND REPORT OF THE PANEL (WT/DS403/R)

Madam Chair, we would like to begin by thanking the Appellate Body, the panelists, and the Secretariat for their work on this matter.

The United States has been concerned for many years about the Philippines’ discriminatory taxes on distilled spirits and is pleased to propose the adoption of the Panel and Appellate Body reports in the dispute brought by the United States (WT/DS403/AB/R and WT/DS403/R).

The reports are precise and thorough, and are a strong affirmation of the longstanding commitments in the GATT 1994 to the non-discriminatory treatment of imported products.

The legal claims presented in this dispute were not novel, but there were a number of new issues raised and both the Appellate Body and the Panel carefully considered the evidence before it in the context of this specific dispute, focusing on the operation of the Philippine measures at issue.

The Appellate Body’s analysis is methodical, and focuses on the Panel’s treatment of the evidence before it.  Separately, it reviewed the appellant’s claims of error as they related to the specific elements of the claims against the Philippines’ measures, and tailored its analysis to the specific facts in this dispute.

As a result, the report provides clear and specific findings with respect to the Philippines’ measures.  Moreover, the United States appreciates the focused nature of the report. Although the Panel and Appellate Body fully addressed the parties’ arguments and evidence, it did not add to the reports additional discussion or speculation not necessary to resolve the questions before it.

The Panel and the Appellate Body reports definitively confirm that these taxes are not consistent with the Philippines’ obligations.  Further, the reports separately and independently support the two claims by the United States:  that the Philippine measures are inconsistent with the Philippines’ obligations under the first and second sentences of Article III:2 of the GATT 1994.

We look forward to action very soon by the Philippines to reform its tax system to meet its WTO obligations.

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