Overview of Agreements Resulting from Third U.S.-China Strategic Economic Dialogue
The Treasury Department1 has issued a fact sheet summarizing the multiple memoranda of understanding and other results of the third U.S.-China Strategic Economic Dialogue (SED)2 held in Beijing, China on December 12-13, 2007.
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The fact sheet also notes the priority areas on which the two sides have agreed to work together until the next SED meeting, which is to be held in Washington, DC in June 2008.
Third SED Results in MOUs in Product/Food Safety, Energy/Environment, Etc.
The Treasury Department notes the following results of the third SED (partial list):
Food, toys, lighters and other product safety. The U.S. and China signed several MOUs intended to improve product and food safety. The MOUs were in the areas of: (1) food and feed; (2) drugs and medical products; (3) environmentally compliant exports/imports; (4) food safety; (5) alcohol and tobacco products; and (6) additional areas including: toys, fireworks, lighters, and electrical products, motor vehicle safety, and pesticides tolerance and trade.
RMB-denominated stocks and bonds. Among other things, China agreed to allow, in accordance with relevant prudential regulations, qualified foreign-invested companies, including banks, to issue RMB denominated stocks; qualified listed companies to issue RMB denominated corporate bonds; and qualified incorporated foreign banks to issue RMB denominated financial bonds.
Biomass for fuel, illegal logging, emission trading, etc. The U.S. and China signed a MOU strengthening cooperation in the area of biomass resources conversion for fuel, and negotiated a MOU to cooperate on combating illegal logging and associated trade in order to promote sustainable forest management. China will develop and implement a nationwide program on SO2 emission trading in the power sector. The U.S. and China reaffirmed their commitment "to reduce, or as appropriate, eliminate tariffs and non-tariff barriers to environmental goods and services" in the World Trade Organization (WTO).
Advanced publication of new measures. When possible, each country will publish in advance (either in respective official publications or official websites) any measures covered by its WTO obligations that are proposed for adoption, and provide where applicable, a reasonable opportunity to comment on such proposed measures. Each country will publish in its designated official journal any final measures covered by its WTO obligations before implementation or enforcement.
Opposition to protectionism. The U.S. and China committed to communicate on measures to address their economic imbalances through dialogue and consultation, including discussions under the U.S.-China Joint Economic Committee. Both sides agreed to put great emphasis on opposing trade and investment protectionism.
Work Priorities Until Next SED Include Origin Rules, Administrative Licenses, Etc.
The press release notes that the two sides plan to work together on the following priorities until the next SED meeting in six months (partial list):
market-economy status for China.
rules of origin: relevant departments of the two sides have agreed to meet or hold a digital video conference in the field of rules of origin;
administrative licenses: establish a communication mechanism to exchange information regularly on the conditions, procedures and timeframes for granting administrative licenses in areas of the Chinese market of interest;
elimination of tariffs and non-tariff barriers on environmental goods;
plan to reduce sulfur content in fuels; and
bilateral investment treaty: intensify ongoing discussions regarding the prospects for negotiating a Bilateral Investment Treaty.
1Treasury Secretary Henry Paulson served as President Bush's special representative and co-chair of the SED.
2According to the U.S. Trade Representative, the SED is a forum designed to provide an overarching discussion of ongoing bilateral economic issues, cross-cutting issues, and long-term strategic challenges.
(See today's ITT, 07122199 1, for BP summary of Treasury's statement in this fact sheet that U.S. Customs and Border Protection (CBP) and Chinese Customs were expected to begin joint validations under the Customs-Trade Partnership Against Terrorism (C-TPAT) pilot project in China in early January 2008.
See ITT's Online Archives or 12/13/07 news, 07121315, for BP summary of the U.S.-China memorandum of agreement on food and feed safety.
See ITT's Online Archives or 12/19/07 news, 07121915, for BP summary of the U.S.-China memorandum of agreement on drug and medical device safety.
See ITT's Online Archives or 12/13/07 news, 07121320, for BP summary of the outcomes of the 18th U.S.-China Joint Commission on Commerce and Trade (JCCT) convened at the same time as the 3rd SED.
See ITT's Online Archives or 12/20/07 news, 07122015, for BP summary of the U.S. and China signing of guidelines for high technology and strategic trade development during the 18th JCCT meeting.)
Treasury fact sheet (hp-732, dated 12/13/07) available at http://www.treas.gov/press/releases/hp732.htm