U.S. Treasury - Press Releases - International
International

• Paulson Statement on Signing of Peru Free Trade Agreement Act
  

  December 14, 2007
  HP-736

  Paulson Statement on Signing of Peru Free Trade Agreement Act

  Washington, DC--Treasury Secretary Henry M. Paulson, Jr. today issued the following statement following the President's signing of H.R. 3688, the United States-Peru Trade Promotion Agreement Implementation Act with Peru's President Alan Garcia:

  "Today's signing demonstrates the United States' continued commitment to reducing trade barriers and spreading prosperity in the Americas. Free trade agreements are a proven way to stimulate U.S. exports, create jobs and usher in foreign investment and both of our countries will benefit from this important bipartisan accomplishment. U.S. businesses and exporters will gain access to Peru's markets while Peru will continue its economic growth and stability with an expanded trade relationship with the largest market in the world.

  I look forward to working with Congress to secure passage of the other important pending free trade agreements with Colombia, Panama, and South Korea."

• Paulson Statement on IDA Replenishment
  

  December 14, 2007
  HP-735

  Paulson Statement on IDA Replenishment

  Washington, DC--Treasury Secretary Henry M. Paulson, Jr. today issued the following statement on the announcement of the U.S. pledge to the International Development Association (IDA):

  "Today's announcement demonstrates the United States' strong commitment to the poorest countries in the world and to IDA. I'd like to thank World Bank President Robert Zoellick for his leadership and the donor community for their contributions and commitment to fighting poverty. Our pledge of $3.7 billion is a 30 percent increase and represents the largest three-year increase since the Carter administration and helps finance President Bush's debt relief initiative for the poorest countries. The IDA15 replenishment furthers the World Bank's commitment to effective engagement in fragile states and improving results on the ground. I look forward to working with Congress to fund these commitments and I urge them to meet the President's budget request for paying back our arrears."

   

• Fact Sheet: Third Meeting of the US-China SED
  

  December 13, 2007
  hp-733

  U.S. Fact Sheet:
  The Third Cabinet-Level Meeting of the U.S.-China Strategic Economic Dialogue
  December 13, 2007, Beijing

  The United States and China today concluded the third Cabinet-level meeting of the Strategic Economic Dialogue (SED).  President George W. Bush and President Hu Jintao established the SED to create a Cabinet-level forum to articulate long-term objectives while managing short-term challenges in our economic relationship.  During the meeting held December 12 and 13, 2007 at Grand Epoch City near Beijing, 6 U.S. Cabinet officials and agency heads joined Secretary Paulson for discussions with China's Vice Premier Wu Yi and a delegation of 14 Chinese ministers and agency heads.

  The SED is a mechanism for managing the U.S.-China economic relationship on a strategic basis.  Stable and prosperous bilateral economic relations are increasingly important to both countries.  At the meeting this week, leaders from both countries discussed the following topics: integrity of trade and product safety; balanced economic development, including financial sector reform; energy efficiency and security; environmental sustainability; and bilateral investment.

  Integrity of Trade and Product Safety

  The United States is one of the most open economies in the world, and American consumers benefit from this openness through access to a wide variety of products from around the world.  Americans have every expectation these products are safe, and the United States continues to take steps with all trading partners to maintain that confidence in the safety and quality of these products.

  China is an important trading partner for the United States, and both countries have a continuing dialogue to strengthen the integrity of their trade relationship.  This has resulted in agreements this week by China to meet the strict requirements the United States has in place to protect consumers and ensure the safety and quality of products sold in the marketplace.

  • Food and Feed Safety: As a result of a Memorandum of Agreement between the U.S. Department of Health and Human Services (HHS) and China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), China will strengthen requirements for registering and regulating companies that export food and feed products to the United States. This step will help prevent adulterated and substandard food and feed products from being transported between China and the United States. Additionally, China will begin to certify products that meet the requirements of HHS.  To continuously ensure and monitor the safety of food and feed coming from China, the United States will establish processes to audit Chinese procedures for registration and certification of exporting companies. 
    • The U.S. Department of Agriculture (USDA) is finalizing a separate agreement with China's AQSIQ to allow both countries to facilitate trade related to meat, poultry and egg products.
  • Drugs and Medical Products: HHS and China's State Food and Drug Administration (SFDA) have agreed to expand cooperation in the areas of the safety of drugs and medical devices.  These steps will allow China to further combat pharmaceutical counterfeits, and strengthen the quality and safety of finished drugs, active pharmaceutical ingredients and exported to the United States.
  • Environmentally Compliant Imports and Exports: The Environmental Protection Agency and China's AQSIQ have signed a Memorandum of Agreement to strengthen cooperation on sound environmental management practices related to imports and exports.
  • Alcohol and Tobacco Products: The United States and China have signed a Memorandum of Understanding to expand collaboration and cooperation for the exchange of information on regulatory standards for alcohol and tobacco products, to improve the safety of imports and exports between the two countries.
  • Consumer Products: Additionally, since September 2007, the United States and China have signed three separate agreements and work plans that strengthen cooperation with the goal of increasing the safety of consumer products.  These agreements and work plans cover toys, fireworks, lighters, and electrical products; motor-vehicle safety; and pesticides.  The agreements, in total, demonstrate the United States' continuing commitment to ensuring the safety of the American consumers and the integrity of products in the American marketplace. 

  Financial Sector Reform

  New Commitments at the Third Cabinet-level SED

  • Foreign Issuance of RMB Stocks and Bonds: China has agreed to allow foreign companies doing business in China, including banks, to issue RMB-denominated stocks and bonds.  This will provide U.S. companies with new opportunities to finance and expand their sales in China.
  • Limits on Foreign Investment: By the end of next year, China agreed to complete a study with recommendations on policies governing foreign equity participation in the banking sector. China also agreed to complete a study with recommendations on adjusting the extent of foreign equity participation in the securities sector. This will pave the way for greater business opportunities in China's growing financial sector for U.S. companies.
  • Bank Administered Mutual Funds:  Chinese and U.S. regulators have agreed to an exchange of letters allowing mutual funds administered by Chinese banks to invest in the U.S. stock market.  This will create new business opportunities for U.S. money managers and new financing opportunities for U.S. companies.

  Implementation of Previous SED Commitments

  • Securities: China announced they will resume licensing of new joint-venture securities companies. In addition, China has also announced that it will allow foreign securities firms to expand their operations in China to include brokerage, proprietary trading and fund management. This will create new opportunities for U.S. firms in a variety of securities businesses.  Several foreign firms, including some U.S. firms are in advanced stages of establishing new joint ventures. 
  • Qualified Foreign Institutional Investors: China has raised the quota for Qualified Foreign Institutional Investors, which allow foreign mutual funds to invest in China's domestic stock market, from $10 billion to $30 billion, creating new opportunities for U.S. mutual funds and money managers.

  Exchange Rate Policy