The IER is produced as part of the ITC's international trade monitoring program. The program's purpose is to keep the Commission informed about significant developments in international economics and trade and to maintain the Commission's readiness to provide technical information and advice to policymakers in the Congress and the executive branch. The opinions and conclusions of the IER are those of the authors and do not necessarily reflect the views of the Commission or any individual Commissioner.

The current issue (March/April 2001) includes the following articles:

• Lumber in North America: The Calm Before the Storm? -- The expiration of the U.S.-Canada Softwood Lumber Agreement at the end of March 2001 has been anticipated on both sides of the border for the past year. Supporters and opponents in each country include lumber producers, legislators, environmentalists, consumer spokespersons, and trade policy analysts. The relative peace of the last five years is likely to be followed by more division on the bilateral trade front.

• Examination of U.S. Inbound and Outbound Direct Investment -- As both U.S. direct investment abroad and foreign direct investment (FDI) in the United States ("outbound" and "inbound" FDI, respectively) continue to grow steadily, interest in the effects of such investment on U.S. wages, employment, imports, exports, and productivity is ongoing. Both types of investment are associated with increases in international trade and with R&D expenditures. Fears that outbound FDI depresses the U.S. wage structure are not supported by available evidence, while inbound FDI creates upward pressure on wages, particularly in services. The article is based on a recently released USITC Staff Research Study.

• Mexican Sugar and U.S. Sweeteners -- Mexico turns to NAFTA to resolve its dissatisfaction with the U.S. tariff rate quota for sugar. U.S. exporters of high-fructose corn syrup sweeteners and the U.S. government turn to NAFTA and the WTO to challenge the legality of the steep antidumping duties Mexico imposed on imports of this product.

In addition, the publication reviews U.S. economic performance relative to other major trade partners, U.S. trade performance, and economic forecasts. Comparative economic indicators for major industrialized countries are also provided. The current issue also includes a review of labor productivity in 2000. An annual IER chartbook depicting trends in U.S. trade with major trading partners and regions is also included in the IER series.

The current issue of the IER (USITC Publication 3419, March/April 2001) will be available on the ITC's Internet server at www.usitc.gov. To request a printed copy, write to the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, D.C. 20436, or fax requests to 202-205-2104.

To be added to the mailing list for the publication, write to the Office of Economics, U.S. International Trade Commission, 500 E Street SW, Washington, D.C. 20436, or fax requests to 202-205-2340.