U.S.-Japan trade negotiations, the impact of the CBERA program, U.S. trade with Mercosur countries, and U.S. imports under ATPDEA are the topics covered in the current issue of the International Economic Review (IER), a publication of the U.S. International Trade Commission's Office of Economics.

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 (November/December 2003) includes the following articles:

• U.S.-Japan Trade: Trends and Negotiations -- The U.S. trade deficit with Japan increased from $51.2 billion in 1996 to $73 billion during 2002, or by 43 percent. This article analyzes trends during 1996-2002 of the leading U.S. exports to and imports from Japan. In addition, it reviews two major sets of bilateral negotiations aimed at addressing both sectoral and structural issues during this period.

• USITC Releases Report on the Impact of CBERA in 2001-2002 -- The USITC recently released its biennial report on the impact of the Caribbean Basin Economic Recovery Act (CBERA) in 2001-2002. The report shows that the impact of imports under CBERA on the overall U.S. economy, industries, and consumers continued to be negligible in 2001 -2002, despite enhancements to the program in 2000. The enhancements may lead to significant future effects in the textiles and apparel sectors.

• United States Trade with Mercosur -- Beginning in 2002, the Southern Common Market (Mercosur) countries of Argentina, Brazil, Paraguay, and Uruguay, reversed their longstanding combined trade deficit with the United States. The United States recorded a $5.7 billion trade deficit with the Mercosur countries in 2002, down from a $9.9 billion trade surplus in 1997. This trend continued into 2003. Unlike Andean, Caribbean, and Central American countries, the Mercosur countries receive no preferential access to the U.S. market other than the U.S. Generalized System of Preferences program. Nevertheless, the Mercosur countries increased their share of total U.S. imports between 1997 and 2002 -- a challenge to the conventional view that Mercosur countries are at a disadvantage relative to Andean, Caribbean, and Central American countries in terms of access to the U.S. market. This article investigates recent U.S.-Mercosur trade patterns.

• Implementation of ATPDEA Changes Composition of Imports under ATPA in 2003 -- The USITC recently released its annual report on the Andean Trade Preference Act (ATPA) in 2002. The report shows that the composition of U.S. imports under the program began to change with the implementation of the Andean Trade Promotion and Drug Eradication Act (ATPDEA), an enhancement of ATPA, on October 31, 2002. More recent data indicate that the composition of U.S. imports under ATPA has changed substantially as a result of ATPDEA's implementation and that most U.S. imports from the region now enter the U.S. market duty free.

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 of the IER (USITC Publication 3659, November/December 2003) 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.