TRADEJapan Extends Punitive Tariffs on US for One YearJapan's Ministry of Economy, Trade and Industry (METI) announced that it would extend for one year punitive tariffs on certain US imports in retaliation for continued US enforcement of the Byrd Amendment. The Byrd Amendment permits the distribution of anti-dumping and countervailing duties to US firms injured by illegal foreign dumping and subsidy programs. The one year extension will take effect September 1, 2006 and will continue a 15% tariff on imports of 15 US products including ball bearings, steel products, industrial belts and pulleys. Japan first imposed the tariffs on September 1, 2005 after the United States refused Japan's and other World Trade Organization (WTO) Members' requests to repeal the Byrd Amendment. In 2003, the WTO ruled the Byrd Amendment inconsistent with WTO rules in response to a complaint filed by Japan and ten other Members. Following the United States' refusal to bring the Amendment into conformity with WTO rules, Japan and seven other Members petitioned the WTO Dispute Settlement Body (DSB) for the right to impose countermeasures. The DSB approved the petition in August 2004. Although Congress repealed the amendment in December 2005, qualified US producers will be eligible for distributions of assessed anti-dumping and countervailing duties on entries made prior to October 1, 2007. Senate Approves Vietnam PNTRThe Vietnam PNTR bill was approved 18-0, with Sens. Jim Bunning (KY-R) and Rick Santorum (PA-R) voting present. But moving this trade bill through the Senate - even though it enjoys near-universal support - will still be difficult. Business supporters are proceeding on a "Senate-first" strategy that aims to push the bill through in the first couple of weeks of the September session, followed by House action. House passage presents the larger hurdle because many House leaders are skittish about any trade votes before the election. However, Sens. Elizabeth Dole (NC-R) and Lindsey Graham (SC-R) have placed holds on the Vietnam measure and are looking for the Administration to take steps to provide for more restrictions on apparel imports from Vietnam than under the current agreements. ENVIRONMENTALToxic Chemicals Continue to DeclineThe amount of toxic chemicals released in North America continued to decline in 2003, according to a report released by the Commission for Environmental Cooperation. The annual Taking Stock report presents data that show total releases of industrial chemicals fell by 9% in North America from 2002 to 2003, and have decreased by 20% since 1998, the first year in which the report was generated. In 2003, nearly 3 million metric tons of chemicals were released into North American air, land or water from 23,816 facilities, according to the report. The report is based on data derived from the Canadian National Pollutant Release Inventory (NPRI) and the US Toxics Release Inventory (TRI) as well as selected data from Mexico. The number of facilities reporting to both the US and Canadian pollutant release and transfer registries increased by 3% in 2003 as compared to 2002. The US and Canadian registries do not include pollutants released by vehicles, pesticide applications, or use of household chemicals and consumer products. Onsite releases (those within the boundaries of the generating facility) decreased 11% overall between 2002 and 2003, the report found. Specifically, releases to the air dropped 4% and to surface water dropped 6%. Offsite releases - chemical wastes sent to other facilities for disposal - were down by 2%. EPA Has Failed to Meet Air Toxic RequirementsEPA has not adequately implemented its programs to limit toxic air emissions, according to a Government Accountability Office (GAO) report issued recently. Of the 453 requirements outlined in the 1990 update to the Clean Air Act for the EPA to fulfill, 12 were met on schedule, 202 were met late, 89 have not been met and are past due, and 150 are unmet but not yet due. Further, EPA has completed only 16 of 70 emission standards for small stationary sources, such as dry cleaners, that accounted for one-third of air toxics emissions in 2003, according to the report. EPA also has proposed but not finalized a standard for air toxics stemming from cars and other mobile sources of pollution. Among other requirements not met, according to the report, is EPA's failure to review and update the list of air toxics that are regulated despite evidence that potentially harmful chemicals remain unregulated. EPA Advisors Criticize Proposed TRI ChangesA US EPA Advisory panel is asking EPA Administrator Stephen Johnson to reconsider plans to sharply reduce the amount of information that companies must make public about some toxic chemicals. A letter sent recently by members of the Environmental Economics Advisory Committee of the agency's Science Advisory Board says proposed changes to the Toxics Release Inventory (TRI) could hurt researchers who rely on TRI data. While the letter does not have the endorsement of the science board, committee members had to get board approval before sending it. Today nearly 24,000 facilities must submit annual TRI reports on 650 chemicals they release into the air, land and water. EPA proposed raising the threshold for detailed reporting from 500 pounds to 5,000 pounds per chemical handled by a facility annually. This proposal, which is in the final stage of rulemaking, would increase the number of facilities eligible to submit a shorter form instead of a full statement on releases. The agency is also considering a change to require companies to report emission every other year, rather than annually. EPA has yet to formally propose this change.
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