by Janet Kopenhaver, AWPA Director of Government Affairs
TRADE
� Free Trade Agreements
The Senate Finance Committee approved an historic trade agreement with
Vietnam that would reduce tariffs on Vietnamese products and provide copyright
protection to US companies. However, because Vietnam is a communist nation,
its normal trade status would still be subject to annual review until it
gains entry into the World Trade Organization (WTO).
The trade pact with Jordan, however, is not going so smoothly. Sen.
Phil Gramm (R-TX) has threatened to block further action on this agreement
because of its labor and environmental provisions. Gramm said the Jordan
measure is "a threat to US sovereignty because an international tribunal
could rule that labor or environmental laws written by Congress were detrimental
to trade, making the US liable for sanctions." Gramm added that he would
use procedural means to keep the measure from the Senate floor if it was
not changed to better protect US laws from outside interference. If approved
by Congress, Jordan would become only the fourth country, after Canada,
Mexico and Israel, with which the US has a free-trade agreement.
� WTO FSC Decision
A World Trade Organization (WTO) panel, in an interim report, said that,
despite changes Congress made in the law allowing US companies to set up
foreign sales corporations (FSC) to shield overseas profits from taxes,
the system still provides an illegal subsidy and violates trade rules.
If the interim ruling is confirmed by the WTO in August, as is expected,
it could put the European Union on track to hit the US with as much as
$4 billion in retaliatory sanctions.
� China in the WTO
China moved a little closer to WTO membership when it reached final
agreements with the European Union (EU) on terms for entry. This agreement
effectively removes the largest remaining barrier to the nation's membership
in the international organization. However, there still is work to do since
other countries still have to harmonize their trade agreements with China.
There will be working party meetings to address outstanding multilateral
issues of concern and differences among the 50 trade agreements.
China, the biggest trading nation outside the WTO, has been blocked
from joining because of wrangling over state subsidies and barriers to
foreign companies. WTO membership requires countries to lower trade and
investment barriers, yet also shields them from protectionist measures
by other members.
A senior Commerce Department official, Grant Aldonas, Undersecretary
for International Trade, recently testified at a congressional hearing
on China. He said, "After China joins the WTO, the administration will
need to watch China closely to ensure it is complying with its commitments.
Compliance will be a huge issue."
Because China is still not an official member of the WTO, President
Bush had to again extend normal trade relations (NTR) with China for another
year. As expected, NTR opponents introduced a "resolution of disapproval"
to reverse the president's decision. This resolution must be considered
on an up-or-down vote within 90 days of the president's decision - or no
later than August 30, 2001. The House Ways and Means Committee approved
the president's request, and sent the provision to the House floor for
a final vote. A House vote is expected in before the summer recess starting
August 4.
� Byrd Amendment
The European Union announced its decision to request the establishment
of a WTO panel against the US over the so-called "Byrd amendment" - US
legislation providing for the proceeds from anti-dumping cases to be paid
to the US companies responsible for bringing the cases in the first place.
The request for a panel was jointly submitted with eight other WTO partners:
Australia, Brazil, Chile, India, Indonesia, Japan, Korea, and Thailand.
In addition, Canada and Mexico may join them in September because they
thought they were exempt from the provisions of the Byrd Amendment because
of NAFTA.
In the first six months of the amendment's existence, $50 billion in
fines have been collected, but the law provides that the funds cannot be
distributed until September 30, the end of the fiscal year.
ENVIRONMENTAL/REGULATORY
� Ergonomics
The Department of Labor (DOL) plans to make a decision on how to address
ergonomics this September. To help determine a final course of action,
the DOL is convening three public forums to get public input on three issues:
1) what is an ergonomics injury; 2) how OSHA, employers and employees determine
whether an ergonomics injury stems from work, from other activities or
some combination; and 3) what are the most useful and cost-effective types of government involvement to address these injuries - rulemaking, guidelines, best practices, partnerships, publications, or combinations of these approaches.
At this time, DOL intends to concentrate on six principles as a starting
point for creating a new ergonomics approach, including:
� Prevention - should place greater emphasis on preventing
injuries
� Sound science - should be based on the best available science
and research
� Incentive-driven - should focus on cooperation between OSHA
and employers
� Flexibility - should take into account the varying capabilities
and characteristics of different businesses
� Feasibility - future actions must recognize the costs of compliance
to small businesses
� Clarity - must include short, simple and common-sense instructions
� OSHA Record Keeping
There were developments on two fronts recently with respect to OSHA's
record keeping requirements. First, the Administration has rejected a proposal
to require employers to separately report nerve, tendon or spinal disk
injuries in their workplaces. Business groups hailed the decision saying
the proposal to require such record keeping was too vague.
OSHA also announced that the new record keeping and reporting rule scheduled
to go into effect on January 1, 2002 will go forward. However, the Labor
Department will seek comment on two proposed modifications to the rule.
First, that the criteria for recording work-related hearing loss not
be implemented for one year pending further investigation into the level
of hearing loss that should be recorded as a "significant" health condition;
and second, a one-year delay to the rule's definition of "musculoskeletal
disorder" (MSD).
OTHER
� Patients' Bill of Rights
By a vote of 59-36, the Senate passed a Patients' Bill of Rights that
will guarantee patients access to emergency care, specialists, prescription
drugs and the right to take part in clinical trials. But the biggest change
would be that patients could sue their HMO or insurance company if they
are denied care in federal and state court after an independent review.
The president has already threatened to veto the measure, warning that
increased litigation will drive up the cost of health insurance for all
Americans.
Bush has endorsed a more limited version of the bill crafted by House
Republicans. This legislation would allow some lawsuits in state and federal
court as a last resort. If the House passes its own bill, lawmakers will
try to reconcile it with the Senate version in a conference committee.
Then both chambers must vote on a final version before Bush can decide
whether to sign it into law.
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