EU report finds fault with the US trade policies

EU report noted US trade barriers (EU)The European Commission, the executive arm of the European Union, in its annual report on July 27 highlighted continuing concerns and pointed at a number of new barriers on trade and investment in the US introduced by Washington in 2008.

The report focuses on some key trade barriers and measures that prevent EU exporters from tapping into the full potential of the US market.

The European report raised concerns about US legislation governing ports and freight, in particular with respect to the potential costs of the scanning requirement and its impact on EU supply chains. It also highlights problems arising from the complexity of US regulatory systems and regulatory divergences with the EU (comprising of 27 member-nations) which can represent an important structural impediment to market access.

MORE BARRIERS

Regarding barriers which have been introduced or reinforced in 2008, the report includes details on registration and documentation procedures (Lacey Act), government procurement (Buy America provisions), tariff barriers (multilayer parquet) and sanitary and phytosanitary measures (dairy import assessment).

Citing the so-called Irish music case, in which European producers and performers “do not enjoy broadcasting rights granted to the US” as a result, the report noted that the US has failed to bring its Copyright Act into compliance with World Trade Organization rules on IP.

The report pointed at the US failure to join the Rome Convention of 1961 and its exception to the World Intellectual Property Organization Performances and Phonograms Treaty of 1996.

On the other hand, US rights holders are protected for the same in the EU, the report said.

With negotiations going on since 2006 on the subject, the EU report stressed continuing “difficulties” to protect GIs on food and drink products in the US as “a source of considerable frustration for EU producers who find “particularly problematic” the number of European wine names the US considers as “semi-generic.”

Coming to the patent allocation, the EU report criticized the US government for frequently failing to comply with Article 31 of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which requires governments that use patents to promptly inform the patent right holders.

Consequently, the right holders are likely to miss the opportunity to initiate an administrative claim process.

STATISTICS

The European Union and the United States share the largest bilateral trading partnership worldwide, with 33% of world trade in goods and 44% of world trade in services.

In 2008, the EU had a surplus of 63 billion euros in goods trade with the US, importing 186 billion euros while exporting 249 billion euros.

Trade in services has continued to grow in both directions, with total trade in services more than 266 billion euros (2007 figures), with an EU surplus of 11 billion euros. The US is also the leading overseas destination for EU investment.

For the full text of the report please go to:
http://trade.ec.europa.eu/doclib/html/144160.htm