[authors: Quinn Bailey, Shannon Doyle Barna, Cole Pfeiffer, P. Lee Smith, and Jordan Shepherd]
China Announces Elimination of Export Duties on Rare Earth Elements
On August 7, 2014, the World Trade Organization's (WTO's) Appellate Body upheld a March 2014 dispute settlement panel decision that China's imposition of export duties on tungsten, molybdenum, and other rare earth elements breached WTO rules. This decision represented an important victory for the United States and its partners against Chinese policies, which according to the United States "had forced American manufacturers to pay as much as 300 percent more than what their Chinese competitors pay for the same materials." As of May 1, 2015, the Chinese Government has announced that it has eliminated the aforementioned export duties that were inconsistent with WTO rules. U.S. Trade Representative Michael Froman expressed enthusiasm for the positive outcome, stating that this result confirms "that vigorous trade enforcement can and does produce real results." The United States also expressed concern, however, over licensing requirements imposed by Beijing on the export of rare earths, which could be construed as export restrictions. The United States will continue to monitor China's commitment to its WTO obligations.
Seychelles Becomes the 161st Member of the WTO
The World Trade Organization (WTO) expanded its membership on April 26 with the addition of Seychelles as its 161st Member. Having originally applied for accession to the WTO in 1995, shortly after the Organization's founding, Seychelles' bid to join the WTO was approved by Members in December 2014, and Seychelles completed its internal ratification process of the WTO Agreement by March of this year.
As a small developing country comprised of 115 islands in the Indian Ocean with a population of 92,000 people, Seychelles is subject to particular economic challenges. Now, as a WTO Member, it can count on access to a level playing field through the multilateral trading system to seek growth and economic development. While tourism and fishing are key industries in Seychelles' economy, it also is active in manufacturing such as agroprocessing.
New Report Highlights the Impact of Trade in All 50 States
In April 2015, the Department of Commerce and the Office of the U.S. Trade Representative released a joint report titled "United States of Trade" to highlight stories and data about the positive impact of trade in all 50 states. The report breaks down export statistics from 2014 to analyze the growth of U.S. industry and manufacturing. It demonstrates that the value of U.S. exports has more than doubled during the past decade, reaching $2.3 trillion in 2014. The report highlights that nearly 98 percent of the 300,000+ companies exporting American goods are small or medium-sized businesses, and that continued growth of U.S. exports will mean sustained economic growth and the creation of additional well-paying jobs. The report also emphasizes that U.S. exports reached record-breaking levels for the fifth consecutive year in 2014.
"There are 11.7 million reasons to support President Obama's trade agenda," wrote U.S. Trade Representative Michael Froman and Secretary of Commerce Penny Pritzker in the introduction to the report, alluding to the number of American jobs supported by trade. In public remarks made in conjunction with the release of the report, Ambassador Froman stated his belief that "[w]ith the Trans-Pacific Partnership we have a once-in-a-generation chance to unleash the economic potential of American small businesses and to level the playing field for our workers."
