As part of its broader efforts to liberalize trade, but still within the scope of WTO rules, the United States is also participating in several regional and bilateral free trade zone initiatives to complement our efforts within the multilateral trading system. By moving on several fronts, we are encouraging faster trade liberalization. An important objective of these negotiations is to reduce trade taxes and remove other barriers to competition for industrial goods, services and agriculture. On 28 April 2020, Mexico and the European Union concluded negotiations on modernising the trade pillar of the agreement. This was the last outstanding element of their new trade agreement. The government negotiated and signed a trade agreement that helped increase U.S. exports to Central America by nearly $8 billion between 2005 and 2008. U.S. exports to Central America increased dramatically after the first entry into force of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). CAFTA countries increased their annual merchandise exports to the United States from $14.7 billion in 2005 to $15.6 billion per year in 2008, an increase of 6.5 percent, which supported jobs in the region.
The U.S. aviation industry, one of the most efficient in the world, relies primarily on bilateral open skies agreements to liberalize trade. Several such agreements have been signed by the United States over the past two years as a cost-effective way for airlines to access new markets. However, these agreements do not fully liberalize the markets they cover; In particular, foreign ownership and control of U.S. airlines remain limited, and only U.S. carriers are allowed to provide domestic air services. The NAFTA deficit was partly compounded by the fact that, shortly after the agreement came into force, Mexico devalued the peso in 1995 to increase the competitiveness of Mexican products in the United States. In addition, U.S. companies have rapidly expanded foreign direct investment (FDI) in Mexico and increased their export goods production capacity to the U.S. market (Scott 1999b). To implement the trade initiatives of the administrations, the President seeks the trade promotion authority, a successor to the Accelerated Authority. U.S.
COMMERCIAL PARTNERS should place great importance on the outcome of these efforts. The report finds that most imports are either duty-free in the United States or subject to low tariffs. In 2000, the average MFN rate was 5.4% for all products, the highest tariffs, mainly for agricultural products, clothing, textiles and footwear. For these products, tariffs tend to increase with the degree of processing. Tariff quotas apply to imports of beef, dairy products, sugar and certain sugar, peanut, tobacco and cotton products. Quota-free tariffs of up to 350% can be used as import bans. Some quota volumes are reserved for certain countries. No one can predict the future. But the Clinton administration expects the huge U.S. trade deficit with China to improve if Congress gives China a long-term normal trade relationship (PNTR) to satisfy Beijing`s membership of the World Trade Organization (WTO). President Clinton says the recently signed trade agreement with China “creates a win-win outcome for both countries” (Clinton 2000, 9). He argues that exports to China “now support hundreds of thousands of American jobs” and that “these numbers can increase significantly with the new access to the Chinese market created by the WTO agreement” (Clinton 2000, 10).
Others in the White House, such as Kenneth Liberthal, special adviser to the president and senior director for Asian affairs at the National Security Council, agree with Clinton`s assessment: one of the main goals of