MoFT issues report on 2101 US trade policy.
ABU DHABI -- Among its multiple objectives and activities, the Ministry of Foreign Trade (MoFT) aims at enhancing the public and private sector's awareness about trade and investment regulation about UAE major economic partners, such as reported in the World Trade Organization (WTO) country reports or studies, and eventually in other reliable sources of information.
It is within this context that the Ministry's Department of Foreign Trade Policies has initiated a series of brief reports about the Trade Policy Review Regimes of its major trading partners.
The current report scrutinized the trade and investment policy in the United States of America which is UAE third trading partner. The department stressed the importance of the information provided in this series for exporters and importers of goods as well of services.
This report should also be looked at in light of the opportunities that the US market offers to the UAE exporting sectors, as well as of the importance of the UAE market as a gateway for US exports to the region. WTO Trade Policy Review Reports remain the most reliable source of information on trade and investment regulation and restrictions for any WTO member.
Within this context Mahmood Sharif Mahmood, Director of Foreign Trade Policies clarified that in addition to a brief assessment of the volume of bilateral trade and its relative importance for the UAE, the report focuses on the partner's policy measures affecting its own imports and exports of goods and services, production activities as related to international trade, and foreign direct investment.
He added that a notable development on the Economic & Investment Conditions & Regime which will have impact on the US National Income & Economic Balances and probably international economic implication is the US Administration call for a Balanced World Growth Model. The US Administration adoption of a Balanced Growth Model necessitates increased consumption in nations with current account surpluses.
In terms of formulation of trade policies, the report illuminated the innovative characteristic of the institutional capacity of US Trade Policy formulation. Many institution participate in the formulation of trade policies; United States Trade Representative (USTR), The Trade Policy Review Group, The Trade Policy Staff Committee (TPSC), Five policy advisory committees, 22 technical and sectoral advisory committees and the State governments.
The most significant observations in the report are the Government Procurements procedure , a measure that affects Production & Trade, underwent an imperative development. In January 3rd 2011 the US has approved a new tax on some government procurement contracts with foreign suppliers. New US procurement contracts with foreign companies will be subject to a two percent tax if the goods or services purchased from countries that are not part of the World Trade Organization's Agreement on Government Procurement besides, State trading, state owned enterprises, and privatization is another measures that affects Production & Trade.
The US government owned extensive equity in many US based PJSC as part of its active stabilization policy to counter recession i.e. International Group (AIG),G, GMAC Chrysler, Citi group. The Government has started to dispose of its equity in these companies back to the market a move that signifies a confidence in this corporation and in the US economy.
Moreover, Development in services, specifically in the telecommunication sector was worth highlighting. The reports states that there is a new converged market composed of the following traditional market players: Broadcasters; Operators (fixed and mobile); Internet service providers; Content aggregators; Advertisers and Users. These players converged to create, develop and make available the following technologies: Voice over internet protocol (VoIP); Video streaming; Broadband by cable; Wireless internet and the US has utilized the Quantitative restrictions, controls, and licensing policy, an import policy tool, to elimination quantitative restrictions on imports from China, also Utilization of Finance, insurance, and guarantees is important export policy tool. The US Export Import Bank remains the main "application vehicle" for this tool. The amounts authorized by Export Import Bank to support export activities increased by approximately 47% between 2008 and 2009.
In addition, Anti Dumping (AD) measures, a key trade policy instrument for the US and a key import policy in general, has increased by 9% from 2008 to 2009; Export Administration Regulations (EAR) which is administered by the Bureau of Industry and Security (BIS) in the Department of Commerce regulates exports and re exports of "dual use" items and trade policy makers can employ measures that affects Production and Trade. Changes in the Business framework and foreign investment regime is considered measure in that matter. Controlling FDI is the procedures by which such measure is implemented. The CFIUS, a statutory interagency committee chaired by the Secretary of the Treasury is responsible for controlling FDI. The number of voluntary notices of covered FDI transactions dropped substantially in 2009, along with a general decline in worldwide investment activity.
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|Publication:||Khaleej Times (Dubai, United Arab Emirates)|
|Date:||Jan 24, 2011|
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