2021 Trade Policy Agenda and 2020 Annual Report

1 2021 Trade Policy Agenda and 2020 Annual ReportOF THE PRESIDENT OF THE UNITED STATES ON THE Trade AGREEMENTS PROGRAMUNITED STATES Trade REPRESENTATIVEFOREWORD The 2021 Trade Policy Agenda and 2020 Annual Report of the President of the United States on the Trade Agreements Program are submitted to the Congress pursuant to Section 163 of the Trade Act of 1974, as amended (19 2213). Chapter IV and Annex III of this document meet the requirements of Sections 122 and 124 of the Uruguay Round Agreements Act with respect to the world Trade organization . The discussion on the Generalized System of Preferences in Chapter II satisfies the reporting requirement contained in the Consolidated Appropriations Act, 2018 (Pub. L. 115-141, div. M, title V, 501(c)). This Report includes an annex listing Trade agreements entered into by the United States since 1984. Goods Trade data are for full year 2020. Full-year services data by country are only available through 2019. The Office of the United States Trade Representative is responsible for the preparation of this Report and gratefully acknowledges the contributions of all USTR staff to its writing and production.

2 We note, in particular, the contributions of Julie McNees and Spencer Smith. Appreciation is extended to partner Trade Policy Staff Committee agencies. March 2021 LIST OF FREQUENTLY USED ACRONYMS AGOA .. African Growth and Opportunity Act APEC .. Asia-Pacific Economic Cooperation ASEAN .. Association of Southeast Asian Nations CAFTA DR .. Dominican Republic Central America United States Free Trade agreement Caribbean Basin Economic Recovery Act Caribbean Basin Initiative CVD .. Countervailing Duty DOL .. Department of Labor DSB .. WTO Dispute Settlement Body DSU .. WTO Dispute Settlement Understanding EU1 .. European Union FOIA .. Freedom of Information Act GATT .. General agreement on Tariffs and Trade GATS .. General agreement on Trade in Services GDP .. Gross Domestic Product GI .. Geographical Indications GPA .. WTO agreement on Government Procurement GSP .. Generalized System of Preferences ICTIME .. Interagency Center on Trade Implementation, Monitoring, and Enforcement ILO.

3 International Labor organization IP .. Intellectual Property ITA .. WTO Information Technology agreement KORUS .. United States Korea Free Trade agreement MFN .. Most-Favored-Nation MOU .. Memorandum of Understanding NAFTA .. North American Free Trade agreement OECD .. The organization for Economic Cooperation and Development SBA .. Small Business Administration SME .. Small and Medium-Sized Enterprise SPS .. Sanitary and Phytosanitary TAA .. Trade Adjustment Assistance TBT .. Technical Barriers to Trade TFA .. WTO Trade Facilitation agreement TIFA .. Trade and Investment Framework agreement TPSC .. Trade Policy Staff Committee TRIPS .. Trade -Related Aspects of Intellectual Property Rights 1 Unless specified otherwise, all references to the European Union refer to the EU-28. TRQ .. Tariff-Rate Quota USAID .. Agency for International Development USDA .. Department of Agriculture USMCA.

4 United States Mexico Canada agreement USTR .. United States Trade Representative WTO .. world Trade organization TABLE OF CONTENTS THE PRESIDENT S 2021 Trade Policy Agenda THE PRESIDENT S Trade Policy Agenda .. 1 THE 2020 Annual Report OF THE PRESIDENT ON THE Trade AGREEMENTS PROGRAM THE 2020 Annual Report OF THE PRESIDENT ON THE Trade AGREEMENTS 1 I. AGREEMENTS AND NEGOTIATIONS .. 1 A. Agreements Notified for Negotiation .. 1 1. United States European Union Trade agreement .. 1 2. United States Japan Trade agreement and United States Japan Digital Trade agreement .. 1 3. United States Kenya Trade agreement .. 1 4. United States United Kingdom Trade agreement .. 2 B. Concluded Agreements .. 3 1. United States China Economic and Trade agreement .. 3 2. United States and European Union Trade agreement Regarding Tariffs on Certain Products .. 3 3. United States Brazil agreement on Trade and Economic Cooperation .. 3 4. United States Ecuador Protocol to the Trade and Investment Council agreement Relating to Trade Rules and Transparency.

5 3 5. United States Fiji Trade and Investment Framework agreement .. 4 C. Free Trade Agreements in Force .. 4 1. Australia .. 4 2. Bahrain .. 4 3. Central America and the Dominican Republic .. 5 4. Chile .. 9 5. Colombia .. 10 6. Israel .. 11 7. Jordan .. 12 8. Korea .. 13 9. Mexico and Canada .. 14 10. Morocco .. 17 11. Oman .. 19 12. Panama .. 19 13. Peru .. 20 14. Singapore .. 22 D. Other Negotiating Initiatives .. 22 1. The Americas .. 22 2. Europe and the Middle East .. 24 3. Japan, Republic of Korea, and the Asia-Pacific Economic Cooperation Forum .. 27 4. China, Hong Kong, Taiwan, and Mongolia .. 29 5. Southeast Asia and the Pacific .. 31 6. Sub-Saharan Africa .. 32 7. South and Central Asia .. 34 II. Trade ENFORCEMENT ACTIVITIES .. 37 A. Overview .. 37 B. Section 301 .. 39 1. China s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation .. 40 2. European Union Measures Concerning Meat and Meat Products (Hormones) .. 42 3. Digital Services Taxes.

6 44 4. Enforcement of WTO Rights in European Union Large Civil Aircraft Dispute .. 47 5. Vietnam s Acts, Policies, and Practices Related to the Import and Use of Illegal Timber .. 49 6. Vietnam s Acts, Policies, and Practices Related to Currency Valuation .. 49 C. Section 201 .. 49 D. WTO and FTA Dispute Settlement .. 50 E. Other Activities .. 97 1. Generalized System of Preferences .. 97 2. The African Growth and Opportunity Act .. 100 3. Other Monitoring and Enforcement Activities .. 101 4. Special 301 .. 103 5. Section 1377 Review of Telecommunications Agreements .. 105 6. Antidumping Actions .. 105 7. Countervailing Duty Actions .. 106 8. Section 337 .. 107 III. OTHER Trade ACTIVITIES .. 111 A. Agriculture and Trade .. 111 1. Opening Export Markets for American Agriculture .. 111 2. Negotiating Trade Agreements for American Agriculture .. 115 3. Bilateral and Regional Activities .. 117 3. Agriculture in the world Trade organization .. 120 4. Enforcing Trade Agreements for American Agriculture.

7 120 B. Digital Trade .. 121 C. Intellectual Property .. 121 D. Manufacturing and Trade .. 123 E. Small and Medium-Sized Business Initiative .. 124 F. Trade and the Environment .. 128 1. Free Trade Agreements and Bilateral Activities .. 128 2. Regional Engagement and Multilateral Fora .. 133 G. Trade and Labor .. 134 1. Free Trade Agreements and Bilateral Activities .. 134 2. Preference Programs .. 138 3. International Organizations .. 140 4. Trade Adjustment Assistance .. 141 H. Trade Capacity Building .. 142 1. The Enhanced Integrated Framework .. 142 2. Trade -Related Assistance under the world Trade organization Framework .. 143 3. TCB Initiatives for Africa .. 144 4. Free Trade Agreements .. 145 5. Standards Alliance .. 145 I. organization for Economic Cooperation and Development .. 146 1. Trade Committee Work Program .. 146 2. Trade Committee Dialogue with Non-OECD Members .. 147 3. Other OECD Work Related to Trade .. 147 IV. THE world Trade organization .. 149 A. Introduction.

8 149 B. WTO Negotiating Groups .. 150 1. Committee on Agriculture, Special Session .. 150 2. Council for Trade in Services, Special Session .. 151 3. Negotiating Group on Rules .. 151 4. Dispute Settlement Body, Special Session .. 151 5. Council for Trade -Related Aspects of Intellectual Property Rights, Special Session .. 152 6. Committee on Trade and Development, Special Session .. 153 7. Negotiating Group on Non-Agricultural Market Access .. 154 C. Work Programs Established in the Doha Development Agenda .. 154 1. Working Group on Trade , Debt, and Finance .. 154 2. Working Group on Trade and Transfer of Technology .. 154 3. Work Program on Electronic Commerce .. 155 D. General Council Activities .. 155 E. Council for Trade in Goods .. 155 1. Committee on Agriculture .. 156 2. Committee on Market Access .. 156 3. Committee on the Application of Sanitary and Phytosanitary Measures .. 157 4. Committee on Trade -Related Investment Measures .. 157 5. Committee on Subsidies and Countervailing Measures.

9 158 6. Committee on Customs Valuation .. 158 7. Committee on Rules of Origin .. 159 8. Committee on Technical Barriers to Trade .. 159 9. Committee on Antidumping Practices .. 160 10. Committee on Import Licensing .. 160 11. Committee on Safeguards .. 161 12. Committee on Trade Facilitation .. 161 13. Working Party on State Trading Enterprises .. 162 F. Council for Trade -Related Aspects of Intellectual Property Rights .. 162 G. Council for Trade in Services .. 162 1. Committee on Trade in Financial Services .. 163 2. Working Party on Domestic Regulation .. 163 3. Working Party on General agreement on Trade in Services Rules .. 164 4. Committee on Specific Commitments .. 164 H. Dispute Settlement Understanding .. 164 I. Trade Policy Review Body .. 166 J. Other General Council Bodies and Activities .. 168 1. Committee on Trade and Environment .. 168 2. Committee on Trade and Development .. 168 3. Committee on Balance-of-Payments Restrictions .. 169 4. Committee on Budget, Finance and Administration.

10 169 5. Committee on Regional Trade Agreements .. 169 6. Accessions to the world Trade organization .. 170 K. Plurilateral Agreements .. 171 1. Committee on Trade in Civil Aircraft .. 171 2. Committee on Government Procurement .. 172 3. The Information Technology agreement and the Expansion of Trade in Information Technology Products .. 172 V. Trade Policy DEVELOPMENT .. 175 A. Policy Coordination .. 175 B. Public Input and Transparency .. 176 1. Transparency Guidelines and Chief Transparency Officer .. 176 2. Public Outreach .. 177 3. The Trade Advisory Committee System .. 178 4. State and Local Government Relations .. 181 5. Freedom of Information Act .. 182 C. Congressional Consultations .. 182 ANNEX I: Trade IN 2020 .. 185 I. 2020 Overview .. 187 II. Export Growth .. 189 A. Goods Exports .. 189 B. Services Exports .. 191 III. Imports .. 192 A. Goods Imports .. 192 B. Services Imports .. 193 IV. The Trade Balance .. 194 ANNEX II: Trade -RELATED AGREEMENTS AND DECLERATIONS.