US
companies applaud zero tariff decision
 |
| Zero tariff decision
- removes substantial barriers to more that 60 percent of U.S. exports of
non-agricultural goods |
Washington,
D.C. and New York, N.Y., 26 November, 2002
- America's leading global companies today gave a strong thumbs-up to the U.S.
proposal to eliminate all tariffs on industrial goods by 2015.
"This is a bold, historic
step," said Thomas Niles, president of the United States Council for International
Business (USCIB), a leading pro-trade group. "It should provide a much-needed
shot in the arm for global trade talks."
U.S. Trade Representative
Robert Zoellick and Commerce Secretary Donald Evans today laid out an ambitious
plan to eliminate tariffs on non-agricultural goods through immediate follow-up
to the global trade liberalization talks launched last year in the World Trade
Organization. These negotiations are scheduled to conclude in 2005.
The U.S. will propose a
two-phase approach to tariff elimination. In the first phase, from the end of
the current round of WTO negotiations until 2010, all existing tariffs of less
than five percent would be eliminated, as would those on so-called "highly
traded goods."
Meanwhile, a "tariff
equalizer mechanism" would converge all other tariffs to eight percent
or less. In the second phase, from 2010 to 2015, remaining industrial tariffs
would be eliminated in a series of equal, across-the-board reductions by all
WTO members.
"The U.S. proposal
is especially welcome in that it brings to fruition the original goals that
led to the founding of the GATT and the WTO," according to Nancie S. Johnson,
vice president of government affairs with E.I. du Pont de Nemours and Company,
who chairs USCIB's trade policy committee. "We hope that all our trading
partners will embrace the zero-tariff concept. If the past half-century has
demonstrated anything, it's that everyone gains from trade liberalization."
According to the WTO, the
value of worldwide merchandise exports (including primary goods like agricultural
and mining products) increased more than a hundred-fold between 1948 and 2000,
from $58 million to $6.19 trillion. The share of manufactures in worldwide merchandise
trade rose from 38 percent to 75 percent during the same period.
Mr. Niles of USCIB predicted
more American companies would quickly line up in support of the U.S. proposal
once they did the math. "Zero is a nice number, since it makes it easy
for companies to calculate their potential benefits in the WTO negotiations,"
he said. "USCIB has supported elimination of all industrial tariffs as
a key element of this negotiation, which would remove substantial barriers to
more that 60 percent of U.S. exports of non-agricultural goods."
Joseph Gavin, USCIB's vice
president for trade policy, said American business plans to work with its counterparts
overseas to drum up support for the zero-tariff idea. "Trade is increasingly
recognized as an indispensable part of sustainable development and as a way
to lift countries out of poverty," he observed. "We're confident that
global groups like the Internatio
nal Chamber of Commerce will welcome an aggressive
approach to the elimination of industrial tariffs."
According to the WTO, developing
countries stand to gain some $200 billion in annual income if remaining barriers
to trade can be cut in half. That figure is three times what the developing
world currently receives in overseas aid, and eight times what poor countries
have so far been granted in debt relief.
USCIB promotes an open system
of global commerce in which business can flourish and contribute to economic
growth, human welfare and protection of the environment. Its membership includes
some 300 leading U.S. companies, professional services firms and associations
whose combined annual revenues exceed $3 trillion. As American affiliate of
the leading international business and employers organizations, USCIB provides
business views to policy makers and regulatory authorities worldwide and works
to facilitate international trade.
Contact:
Joseph G. Gavin III, VP Trade Policy, USCIB
202-371-1316 or Click here to send a mail
Jonathan Huneke, VP Communications,
USCIB
212-703-5043 (office), 732-261-3133 (mobile) or Click here to send a mail