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NEWS RELEASE 00-103; AUGUST 2, 2000
August 2, 2000
News Release 00-103
GLOBAL ISSUES AFFECTING U.S. INDUSTRIES
AND THE TECHNOLOGICAL COMPETITIVENESS OF THE UNITED STATES
ARE FOCUS OF ITC QUARTERLY PUBLICATION
Express services negotiations within the WTO, production sharing developments in 1999, and
new U.S. legislation affecting the apparel industry are among the topics explored in the current
issue of Industry Trade and Technology Review (ITTR), a quarterly publication of the U.S.
International Trade Commission's Office of Industries.
Industry Trade and Technology Review (ITTR) contains articles originating from research and
analysis conducted by International Trade Commission (ITC) staff as part of its responsibilities
to provide advice and technical information on industry and trade issues. The ITTR provides
analysis of important issues and insights into the global position of U.S. industries, the
technological competitiveness of the United States, and implications of trade and policy
The ITTR is a publication of the Office of Industries. The opinions and conclusions it contains
are those of the authors and are not the views of the Commission or of any individual
The current issue (July 2000) includes the following articles:
In addition, the publication includes an appendix charting key performance indicators for the
steel, automobile, aluminum, flat glass, and services industries, as well as for North American
trade. The current issue also includes an appendix of selected statistical tables for 1999 U.S.
imports under the production sharing provisions of HTS chapter 98.
- Express Services: Issues for Negotiation in the World Trade Organization -- During the
current services round, which recommenced in January 2000 as mandated by the
General Agreement on Trade in Services, express delivery services (express services)
will likely be the subject of intense negotiations. The U.S. government and industry
representatives seek not only to negotiate trade-liberalizing commitments from more
countries, but also to redefine the scope of the express services industry to better reflect
the extensive range of intermediate services that express carriers perform between
pickup and delivery. These services include, for instance, radio communication,
freight-forwarding, customs brokerage, and transport. This article provides background
information on the express services industry, examines international trade issues
affecting express service providers, and discusses the current state of negotiations on
express services within the WTO.
- Production Sharing Update: Developments in 1999 -- Investment in production sharing
operations (the use of U.S.-made components in foreign assembly plants) has become
an integral part of global efforts to reduce manufacturing costs and has contributed to
the accelerated pace of cross-border integration of manufacturing in North America and
the Caribbean Basin. Imports that incorporate U.S. content can enter the United States
either free of duty or at reduced duties under the production sharing provisions
(9802.00.60 -.90) of chapter 98 of the Harmonized Tariff Schedule (HTS), which
provide the only U.S. source of data for documenting the use of U.S. components in
foreign assembly. This article highlights 1999 developments regarding imports under
the production sharing provisions, cross-border integration of manufacturing in North
America and the Caribbean Basin, and the use of U.S.-made components in imports
from Asia and Europe.
- Apparel Market: New U.S. Legislation Places CBERA Countries on a More Equal
Competitive Basis with Mexico -- New U.S. legislation will give beneficiary countries
under the Caribbean Basin Economic Recovery Act (CBERA) tariff treatment for
apparel that is essentially equivalent to the trade preferences being granted to similar
goods from Mexico under the North American Free Trade Agreement (NAFTA). U.S.
imports of most apparel from CBERA countries will be eligible to enter free of duty
beginning on October 1, 2000, thereby eliminating a major competitive disadvantage
faced by these countries with Mexico since the implementation of NAFTA in 1994.
The new legislation is expected to benefit (1) U.S. textile producers by stimulating
U.S. exports of yarns and fabrics to CBERA countries, and (2) U.S. firms assembling
apparel of U.S. components in CBERA countries by improving their ability to compete
in the U.S. market with Asian apparel producers, who seldom use U.S. materials. This
article examines the new legislation, competitive conditions in the industry segment
making undergarments and outerwear T-shirts, and the recent business strategies and
outlook for U.S. producers.
Industry Trade and Technology Review (USITC Publication 3335, July 2000) will be posted on
the ITC's Internet server at www.usitc.gov. A cumulative list of articles published in the
report series is also posted. The ITTR will also be available at regional federal depository
libraries in the United States. To request a printed copy of the ITTR or to be added to the
mailing list, contact the Office of the Secretary, U.S. International Trade Commission, 500 E
Street SW, Washington DC 20436. Requests may also be faxed to 202-205-2104.
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