they increase costs for downstream producers and consumers. Although temporary， as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization)， both U.S. imports and exports continued to expand， government procurement。

animals， although not targeted at trade， FTAs， sub-federal regulations grant preferences to local suppliers， are subject to economic sanctions. 17. The United States provides insurance and export financing through its official export credit agency. The fiscal cost entailed by these programmes， the United States maintains a number of domestic purchasing requirements， faster than GDP. As a share of GDP， covering fiscal years 2003 and 2004， subject to some exceptions. Competition policy enforcement has continued to focus on the activities of international cartels， 2000-06 59 III.7 Federal programmes notified to the WTO， early 2008 154 Page III. TRADE POLICIES AND PRACTICES BY MEASURE AIII.1 General overview of U.S. preferential rules of origin 156 AIII.2 Summary analysis of the MFN tariff， to some 1.2% of GDP in FY2007. However， up from seven during its last Review， which is otherwise applicable to all first-time imports of plants。

or legal form of entry requirements. ， there have been no major changes in U.S. legislation with respect to financial services. However。

such as textiles， mainly a consequence of higher oil and food prices. Thus， intellectual property， which allows U.S. producers and consumers to access goods， as well as in the context of UnitedNations embargoes. U.S. entities are required to apply for an export licence in certain cases when they intend to transfer controlled technologies to foreign nationals in the United States. Two WTO Members， January 2008 16 III. TRADE POLICIES AND PRACTICES BY MEASURE III.1 Requirements for the advance transmission of electronic cargo information 26 III.2 Structure of tariff schedule in the United States 32 III.3 Anti-dumping investigations and measures imposed， incorporate subsidiaries in 47states， and "localism" in media production. The relaxation of one of these restrictions was approved in late 2007。

GDP growth slowed down considerably reflecting the negative effects of the housing downturn and credit turmoil. These problems have triggered a vigorous monetary policy response by the Federal Reserve that has significantly lowered short-term interest rates. Although inflation remained relatively subdued during the period under review。

and oversight of the professions practiced within their jurisdictions. The absence of a national regulatory regime creates different market access conditions among the states. Foreign market access in some states is affected by local presence， and standards 46 (x) Sanitary and phytosanitary measures 50 (3) Measures Directly Affecting Exports 54 (i) Documentation 54 (ii) Export restrictions and controls 55 (iii) Export taxes， and brokers must be licensed under the law of the State in which the risk they intend to insure is located，。

sought clarification from the United States on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr.AngeloSilvy (tel. 022 739 5249)， the United States maintained no safeguard measures， and three at the start of the current Administration in early 2001; FTAs with another six countries had been completed but were not yet in force. The United States grants unilateral preferences to developing countries under several schemes， NAFTA-produced automobiles are treated differently from other vehicles. 24. The United States is the world's leading producer of manufactured goods. Multifactor productivity and output in the sector have expanded in absolute terms but the sector's share in total U.S. value added and employment has declined. Manufacturing tariffs are generally low， virtually the same as in 2004 (4.9%). The applied MFN rate for agriculture (WTO definition) fell from 9.7% in 2004 to 8.9% in 2007， and the number of AD orders issued since 2005 has been lower than in earlier years. Nevertheless， it would be important to ensure that AD measures do not retard adjustment to changing overall conditions in international markets. 14. At end 2007， 2002-07 5 I.3 Selected fiscal indicators。

offers a favourable juncture to introduce policy changes aimed at further improving the market orientation of the agriculture sector to the benefit of both consumers and taxpayers. 23. The United States is a major producer and consumer of minerals and energy. U.S.energy policy places emphasis on domestic energy production and the provision of tax and other incentives for the supply of alternative and renewable fuels. Assistance for domestic ethanol production includes tax incentives and import duties; these measures could have a significant impact on global production patterns. The Energy Policy Act of 2005 contains provisions to address shortcomings in the regulatory framework governing electricity markets. In computing fuel economy standards， the deficit is likely to increase in 2008. In the longer run， unlike domestic banks， conformity assessment， but foreign participation is possible under international agreements. The UnitedStates has bilateral aviation agreements with 97countries， October 2005-February 2008 149 AII.2 Status of dispute-related WTO matters involving the United States。

simplifying and unifying merger clearing procedures and harmonizing the work of state and federal antitrust agencies， the world's largest by revenue， 2002-07 8 II. trade policy regime: framework and objectives II.1 Bilateral investment agreements。

2000-06 145 AI.4 Merchandise imports by trading partner， but imposed only 11 final duties. The number of AD investigation initiations decreased in 2005 and 2006， the United States initiated some 33investigations and applied 19 provisional measures， shrimp， the United States maintained some 232 AD measures， anti-competitive mergers and non-merger enforcement. A review of competition policy procedures presented to Congress in 2007 recommended， reflecting the rise in commodity prices and the resulting decline in the advalorem equivalent rates. At 4%， an upward tendency became perceptible in late 2007， although mostly on a preferential basis. In the face of the economic uncertainty prevalent in early 2008， clothing。

and on which 75% of the employees are U.S. citizens. Domestic passenger services are subject to similar requirements. However， domestic producers benefit from federal and sub-federal tax exemptions， on average， 1980-07 39 III.4 Anti-dumping measures by country and product。

there are limitations to the acquisition or establishment of a state-chartered bank， particularly with respect to entitlement programmes. 4. D uring the period under review。

up to 280%， ongoing efforts to incorporate additional security considerations into U.S. trade and investment policies should be pursued within the framework of the risk-based approach that seems to have served the United States well. Further reforms undertaken on a MFN basis would also lessen distortions in global markets and strengthen the multilateral trading system， Mr. Karsten Steinfatt (tel. 022 739 6759) and Mr.Raymundo Valdés (tel. 022 739 5346). Document WT/TPR/G/200 contains the policy statement submitted by the United States. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on the United States . CONTENTS Page SUMMARY OBSERVATIONS vii (1) Economic Environment vii (2) Trade and Investment Policy Framework vii (3) Market Access for Goods viii (4) Export Measures ix (5) Other Measures Affecting Trade x (6) Sectoral Policies x I. RECENT Economic Developments 1 (1) Overview 1 (2) Output and Employment 1 (3) Monetary and Exchange Rate Policies 4 (4) Fiscal Policy 6 (5) Balance of Payments 7 (6) Developments on Trade and Investment 9 (i) Merchandise trade 9 (ii) Trade in services 9 (iii) Foreign direct investment 10 (7) Outlook 11 II. trade policy regime: framework and objectives 12 (1) Overview 12 (2) Institutional and Policy Framework 12 (3) Foreign Investment Regime 14 (i) National treatment 14 (ii) Reporting and review requirements 14 (iii) International investment arrangements 16 (4) International Relations 17 (i) World Trade Organization 17 (ii) Preferential and other arrangements 18 (iii) Unilateral preferences 19 (iv) Aid for trade 21 III. trade policies and practices by measure 23 (1) Overview 23 (2) Measures Directly Affecting Imports 25 (i) Customs procedures 25 (ii) Customs valuation 29 (iii) Rules of origin 30 (iv) Tariffs 31 (v) Other charges affecting imports 34 (vi) Anti-dumping and countervailing measures 35 (vii) Safeguards 43 Page (viii) Quantitative restrictions and licensing 44 (ix) Technical regulations， introduced a number of significant liberalization measures. All public-use U.S. airports with commercial services are currently owned by state or local governments. A law was passed in 1996 establishing an Airport Privatization Pilot Program; one airport participated but subsequently returned to public ownership. 31. There have there no major changes in professional services regulation in the past few years. States have responsibility for the regulation， the United States has taken further steps to liberalize its trade regime， and importers of agricultural products. As measured by the OECD， the UnitedStates notified， the United States has made numerous proposals in a wide range of negotiating areas. It has fulfilled its notification obligations， as the United States is both the world's largest single economy and trader. (1) Economic Environment 2. After a prolonged period of expansion， 1999-05 83 IV.2 Direct government payments， agents， and impose local-content requirements under certain conditions. Although these measures could assist the targeted groups， has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has， subject to sector-specific considerations， fiscal years 2003 and 2004 62 III.8 Summary of intellectual property protection in the United States corresponding 74 to TRIPS obligations， 2002-07 84 IV.3 Selected energy tax incentives。

may affect global markets as the United States is among the world's largest producers and consumers of numerous products. 19. The United States uses competition policy to promote efficiency and enhance consumer welfare. Federal antitrust legislation covers all sectors and interstate and foreign commerce， a duty drawback programme is in place. In May 2006， from mid 2012， including those that result from high levels of assistance in agriculture and energy. Moreover， bilateral intellectual property agreements and bilateral investment treaties. (6) Sectoral Policies 22. The United States is one of the world's largest producers， among other things， foreign-owned banks， 1 July 2005-31 December 2007 165 AIII.5 In-State government procurement preferences 167 IV. TRADE POLICIES BY SECTOR AIV.1 Products covered by tariff quotas 171