Embassy of the United States

Economics

Industries Archive

AA09197
Engler, John FORGING A SECOND AMERICAN CENTURY (Forbes, May 28, 2009)
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In this series of stories called “Made in America,” Engler, former three-term Michigan governor and current president of the National Association of Manufacturers, argues that American manufacturing will survive. The United States, he notes, remains the world’s largest manufacturing nation, accounting for more than 19.5 percent of global manufacturing output. Although 1.5 million manufacturing jobs have been lost, more than 12 million remain and manufacturing represent 11.6 percent of the U.S. gross domestic product. The bad news is that higher taxes, energy and regulatory costs place U.S. manufacturers at a disadvantage compared to their foreign competitors. The good news is that competition hones better manufacturing processes, and, as manufacturing become more automated, lower labor costs in places like China and India are less important in the competitive picture.

NEW CHALLENGES FOR ‘MADE IN CHINA.’
Knowledge at Wharton, University of Pennsylvania. June 2009.
Full Text [PDF format, 22 pages]

Manufacturers in China, whether foreign or domestically owned, face a series of key challenges in the years immediately ahead. Major tests involving product quality and safety, energy costs and environmental viability all come against the backdrop of a difficult world economy. Yet, while world demand for Chinese products has dipped in the short term, the long-term need to hold down costs while meeting shifting customer requirements has never been greater. In the report, experts from Wharton and The Boston Consulting Group look at how this growing list of challenges will change the way manufacturers must think about their operations in China.

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REMARKS BY THE PRESIDENT ON THE AMERICAN AUTOMOTIVE INDUSTRY.
The White House. March 30, 2009.
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The President remarks on the state of the American automotive industry and the plans on restructuring and modernizing of it.

2009 INDUSTRY OUTLOOK: AUTOMOTIVE: CHALLENGING TIMES, EMERGING OPPORTUNITIES.
Deloitte LLP. Web posted on February 18, 2009.
Full Text [PDF format, 7 pages]

As we enter 2009, the U.S. automotive industry is facing some of the most complex challenges in its history. Pressures from plunging sales, frozen credit markets, global competition, higher raw material costs, until recently, gasoline prices, and growing consumer demand for more fuel-efficient vehicles are driving a transformation of the industry across its entire value chain. Regardless of the outcome of government assistance, the impacts of the Detroit 3’s liquidity crisis cannot be viewed independently, as there is a high level of interdependency among the U.S. supply base, the collapse or bankruptcy filing of any of the Detroit 3 would have a negative impact.

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THE ECONOMIC CONTRIBUTIONS OF U.S. MINING IN 2007.
National Mining Association. February 2009.
Full Text [PDF format, 154 pages]

“With more than 375,000 direct jobs that pay wages one-third higher than the U.S. industrial average and the ability to generate as many as four additional jobs elsewhere in the economy, U.S. mining provides more than vital resources for America—it can help rebuild America,” National Mining Association (NMA) President and CEO Hal Quinn said upon release of the report.

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FISHERIES ECONOMICS OF THE UNITED STATES 2006.
National Oceanic and Atmospheric Administration and National Marine Fisheries Service. Rita Curtis et al. January 6, 2009.
Full Text [PDF format, 166 pages]

The United States commercial and recreational fishing generated more than $185 billion in sales and supported more than two million jobs in 2006, according to the study.

WHEN GIANTS FALL.
Economic Policy Institute. Robert E. Scott. December 2008.
Full Text [PDF format, 14 pages]

If bankruptcy shuttered one or more U.S. auto-makers, the effect would be the loss of up to 3.3 million jobs in the U.S. within the next year, according to a study. Michigan alone could lose over 400,000 jobs, and stands to be the hardest hit state both in the number of jobs lost and the share of total state employment (8.9%) lost. The report lists possible job losses in each state and the District of Columbia. When the wages from those auto sector jobs dry up, an additional 576,700 to 2.1 million “re-spending” jobs would be lost. These are jobs that would have been supported by the spending of auto and related workers. Tax losses and increased government payments would exceed $150 billion in the first three years following bankruptcy of all three domestic auto companies. Without cars to export, the U.S. trade deficit would rise by $109.3 billion, according to the author.

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WHY AREN’T FOOD COMPANIES REDUCING PRICES?
Renewable Fuels Association. November 2008.
Full Text [PDF format, 3 pages]

The Consumer Price Index (CPI) for October proves that input costs for food processors are way down but the prices they charge grocery shoppers continue to climb. Prices for virtually everything consumers buy, gasoline, airline tickets, clothing, dropped in October, except food prices. According to a report, the excuse for these prices hikes given by big food companies does not pass well, particularly when one considers that these price hikes are not necessary.

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AA08407
Swelbar, William CHANGE IS IN THE AIR (Foreign Policy, vol. 169, November/December 2008, pp. 40-41)
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Only a complete overhaul can save the airline industry in the face of the current global recession and high fuel prices, says Swelbar, a research engineer at MIT’s International Center for Air Transportation. So far this year, more airlines around the world went bankrupt than in the aftermath of September 11, mostly because of high fuel prices. U.S. airlines still dominate the field but regional budget carriers in China and Europe are rapidly catching up. U.S. carriers are overextended, flying almost everywhere and often; this translates into higher passenger numbers but not necessarily higher revenue. They have reduced (or kept steady) their labor and maintenance costs, but the share of fuel costs in the overall costs has more than doubled since 2003. A short article with much statistical data suggests that, to survive, U.S. airlines will have to pare their routes and number of flights and charge much higher prices.

FOOD SAFETY AND IMPORTS: AN ANALYSIS OF FDA FOOD-RELATED IMPORT REFUSAL REPORTS.
Economic Research Service, U.S. Department of Agriculture. Jean C. Buzby et al. Web posted September 11, 2008.
Full Text [PDF format, 47 pages]

The study examines U.S. Food and Drug Administration (FDA) data on refusals of food offered for importation into the United States from 1998 to 2004. The study found that import refusals highlight food safety problems that appear to recur in trade and where the FDA has focused its import alerts, examinations, and other monitoring efforts. The data show some food industries and types of violations may be consistent sources of problems both over time and in comparison with previous studies of more limited data. The three food industry groups with the most violations were vegetables (20.6 percent of total violations), fishery and seafood (20.1 percent), and fruits (11.7 percent).

AA08299
Cox, Stan TURNING YOUR LAWN INTO A VICTORY GARDEN WON'T SAVE YOU -- FIGHTING THE CORPORATIONS WILL (AlterNet, posted June 23, 2008)
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The "edible-landscaping trend," adopted by ordinary Americans to grow their own food in their front and back yards, is a laudable endeavor, but it will not do much toward easing food shortages or the high cost of food, in the view of Stan Cox, a plant breeder and writer based in Salina, Kansas. "Too many people are getting the idea that the solution to America's and the world's food problems is for all us in cities and suburbia to grow our own -- it's not," Cox writes. The author argues that the food problems are the creation of "Big Agribusiness," which controls what he calls "a dirty, cruel, unfair, broken system." The global food problems stem from shortages of grains -- rice, wheat, corn and beans, produced by large agricultural corporations. The problem will not be solved by city dwellers growing cucumbers and tomatoes in their yards and balconies. Looking back over history, Cox notes that control of grain production is intimately linked with political power. Agribusiness, which dominates grain production in the U.S., functions "with the singular goal of turning maximum profit," Cox writes. He asserts that agribusiness's attempts to increase efficiency have been "ecologically devastating," adding that the "biofuel craze ... compounds the problem." Cox argues that the solution lies in taking political action against agribusiness interests with the aim of promoting more widespread land ownership.

FEEDING THE FUTURE: THE ROLE OF THE U.S. ETHANOL INDUSTRY IN FOOD AND FEED PRODUCTION.
Renewable Fuels Association. Web posted October 5, 2008.
Full Text [PDF format, 8 pages]

Just how much animal feed does the American ethanol industry produce each year? According to a new analysis, America’s ethanol producers delivered 23 million metric tons of livestock and poultry feed to the world last year, or nearly three times the amount of wheat, sorghum, barley and oats fed to U.S. livestock in the 2007/08 marketing year. The amount of feed produced by the ethanol industry in 2007/08 is roughly equivalent to the combined total amount of feed consumed by cattle on feed last year in Texas, Kansas, Nebraska, and Colorado-the nation’s four largest feedlot states.

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UNDERSTANDING AND MITIGATING VULNERABLE BYCATCH IN SOUTHERN AFRICAN TRAWL AND LONGLINE FISHERIES.
World Wildlife Fund. Samantha Petersen et al. Web posted September 4, 2008.
Full Text [pdf format, 262 pages]

The survival chances of the albatross, now officially the most threatened seabird family in the world, have been improved. At least 28 species of albatross and petrel have been caught by South African fisheries, of which 13 are threatened with extinction. The birds are caught trying to retrieve bait from long line fishing hooks, or are injured or killed during trawling operations. The findings help accurately identify management measures to reduce the wasteful killing of these magnificent birds while not unnecessarily disrupting fishing activities or impacting other vulnerable marine life like turtles and sharks.

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A CALL FOR A STRATEGIC U.S. APPROACH TO THE GLOBAL FOOD CRISIS.
Center for Strategic & International Studies. Web posted July 31, 2008.
Full Text [pdf format, 14 pages]

In response to the growing global food crisis, the Center for Strategic and International Studies (CSIS) launched a task force to assess the rising humanitarian, security, developmental, and market impacts of rising food costs and shortages. It argues for modernizing and doubling emergency assistance, elevating rural development and agricultural productivity to be new foreign policy priorities. It also calls for revising the U.S. approach to bio-fuels so that fuel and food security objectives are not in conflict with each other. 

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FISHERIES OF THE UNITED STATES, 2007.
National Marine Fisheries Service, Office of Science and Technology. July 2008.
Full Text [pdf format, 118 pages]

The average American ate 16.3 pounds of fish and shellfish in 2007, a one percent decline from the 2006 consumption figures of 16.5 pounds, according to the study. Americans consumed a total of 4.908 billion pounds of seafood in 2007, slightly less than the 4.944 billion pounds in 2006. The U.S. continues to be ranked the third largest consumer of fish and shellfish, behind China and Japan. The nation imports about 84 percent of its seafood, a steadily increasing proportion. Imports accounted for only 63 percent of U.S. seafood just a decade ago.

WHAT’S DRIVING FOOD PRICES?
Farm Foundation. July 2008.
Full Text [pdf format, 84 pages]

Understanding the complex and multiple factors influencing food prices today is important as future policy options are debated, according to the study. Economic growth and rising human aspirations are putting greater pressure on the global resource base. The study identifies three broad sets of forces driving food price increases: global changes in production and consumption of key commodities, the depreciation of the U.S. dollar, and growth in the production of bio-fuels.

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ARE LOW FOOD PRICES PRO-POOR?: NET FOOD BUYERS AND SELLERS IN LOW-INCOME COUNTRIES.
World Bank. M. Ataman Aksoy and Aylin Isik-Dikmelik. June 2008.
Full Text [pdf format, 32 pages]

The study examines the characteristics of food sellers and buyers in nine low-income countries. Three of the nine countries examined showed a substantial proportion of vulnerable households affected by the food price increases. The average incomes of food buyers were found to be higher than food sellers in eight of the nine countries examined. Thus, food price increases would transfer income from generally higher income food buyers to poorer food sellers. The analysis also finds that the occupations and income sources of sellers and buyers in rural areas are significantly different. In rural areas where food production is the main activity and where there are limited non-food activities, the incomes of buyers might depend on the incomes and farming activities of food sellers.

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RISING FOOD PRICES AND GLOBAL FOOD NEEDS: THE U.S. RESPONSE.
Congressional Research Service, RL34478, Library of Congress. Charles E. Hanrahan. Web posted May 18, 2008.
Full Text [pdf format, 22 pages]

Rising food prices are having impacts across the world, but especially among poor people in low-income developing countries. Since 2000, wheat prices in international markets have more than tripled, corn prices have doubled, and rice prices rose to unprecedented levels in March 2008. Such increases in food prices have raised concerns about the ability of poor people to meet their food and nutrition needs and in a number of countries have lead to civil unrest. More than 33 countries, most of which are in Sub-Saharan Africa are particularly affected by food prices increases. Rising oil and energy prices have affected all levels of the food production and marketing chain from fertilizer costs to harvesting, transporting and processing food. The World Bank and USAID are two aid agencies that are promoting agricultural development and growth in low-income countries. Both indicate that African agricultural development should be a priority.

SQUARING THE DIAMOND MESH: HOW SQAURE-MESHED TRAWL NETS WILL BENEFIT FISH AND FISHERMEN IN THE MEDITERRANEAN.
World Wildlife Federation].
Full Text [pdf format, 6 pages]

The report is based on new ecosystem-based management analyses that use computer models to assess the effects of square-mesh nets on marine ecosystems and fishing fleets. It concludes that square-mesh nets will make trawling more selective. The capture of less immature juveniles and non-target species will be reduced. This in turn will allow the Mediterranean's fragile marine life, damaged by years of indiscriminate trawling, to begin recovery. The proposed square mesh nets are also easy to phase in and do not reduce catches of most target species. It may even increase the yield in the long term.

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RISING FOOD PRICES IN EAST ASIA: CHALLENGES AND POLICY OPTIONS.
World Bank. Milan Brahmbhatt and Luc Christianensen. May 2008.
Full Text [pdf format, 18 pages]

Rising food prices are affecting most developing countries in East Asia. They are contributing to higher inflation, slowing the pace of poverty reduction, and raising concerns about civil unrest. One of the key reasons for higher food prices are the advanced country biofuel policies. The policies aim to promote a more climate-friendly source of energy, but they have also induced a sharp increase in world demand for grains and in grain prices. Recent export restrictions by rice exporting countries concerned about food security have worsened the situation. There is an urgent need for more international dialogue to allow a more open and stable global market in food and to continue progress towards environmentally friendly energy sources.

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FOOD PRICE INFLATION: CAUSES AND IMPACTS.
Congressional Research Service, RS22859, Library of Congress. Tom Capehart and Joe Richardson. April10, 2008.
Full Text [pdf format, 6 pages]

In 2007, U.S. food prices rose 4% and are expected to gain 3.5% to 4.5% in 2008. Higher farm commodity prices and energy costs are the leading factors behind higher food prices. The report states that the farm commodity prices have surged because (1) demand for corn for ethanol is competing with food and feed for acreage; (2) global food grain and oilseed supplies are low due to poor harvests; (3) the weak dollar has increased U.S. exports; (4) rising incomes in large, rapidly emerging economies have changed eating habits; and (5) input costs have increased. Higher energy costs increase transportation, processing, and retail costs.

AA08114
Astyk, Sharon PUTTING YOUR MONEY WHERE YOUR MOUTH IS: HOW EXPENSIVE IS FOOD, REALLY? (Grist, posted April 14, 2008)
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The author, a farmer and writer on food, energy and sustainability issues, notes that skyrocketing food prices are creating widespread hardship, with many low–wage households spending half their income on food. In earlier agrarian societies, it was commonplace to spend a lot of money on food; low food prices of the past half century is an anomaly, generated by large-scale agriculture requiring massive energy and fertilizer inputs. However, Astyk notes that we cannot regard food prices in isolation from society as a whole; while food prices may have been low, the cost of housing has skyrocketed, and people must work long hours to pay for all the dependencies created by the modern industrial economy. Large-scale urbanization has meant that the price of land has become divorced from the value of what it can produce. Low food prices has meant low compensation for farmers -– only a small number of massive agribusinesses are able to survive. The rise in food prices that has resulted from increased energy costs will eventually require a return to localized agriculture, which will benefit farmers, and will mean that land and house prices will have to return to a level at which they are tied to the value of the soil beneath them.

AA08093
Richmond, Peter A BETTER WAY TO TRAVEL? (Parade, November 4, 2007, pp. 6-8)
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Americans spent over 3 billion hours stuck in traffic last year, notes the author, and in the first eight months of 2007, almost a quarter of all plane flights arrived late. Says Richmond, “one solution is staring us in the face” — U.S. passenger railroads, which have been allowed to atrophy for several decades, a victim of skewed transportation priorities which favored highway construction. The author believes that one reason the U.S. railroad system has fallen so far behind other countries is the long-standing aversion for government funding of the nation’s railroads, which have traditionally been private companies founded by nineteenth-century industrial barons. Although the best passenger rail service is along the Eastern seaboard, there are many regional urban areas around the country that would be well-served by a rail alternative to highway or air travel.

ANNUAL DEFICITS CONTINUE FOR U.S. TRADE IN ADVANCED TECHNOLOGY PRODUCTS. Lawrence M. Rausch and Derek Hill. InfoBrief, Science Resources Statistics, National Science Foundation. August 2007.
Full Text [pdf format, 10 pages]

During the 1990s, the U.S. trade in advanced technology products typically produced trade surpluses; but beginning in 2001, the trade balance for these products began to erode. In 2006, the trade deficit in technology products was $38.3 billion. This paper provides an overview of the growing trade imbalance in 11 major technology areas. This information and data were gleaned from the U.S. Census Bureau, Foreign Trade Division.

U.S. CLOTHING AND TEXTILE TRADE WITH CHINA AND THE WORLD: TRENDS SINCE THE END OF QUOTAS. Michael F. Martin. Congressional Research Service (CRS), Library of Congress. July 10, 2007.
Full Text [pdf format, 32 pages]

The last set of quotas on the Agreement on Textiles and Clothing (ATC) were eliminated on January 1, 2005. Many analysts expected an increase of the clothing and textiles trade once these quotas were terminated. Although this market grew faster than before, there has not been a significant shift in production; and there is no clear evidence that the elimination of the quotas has led to a reduction of textile jobs in the U.S. However, Congress has concerns about the post-ATC clothing and textile trade industry. This report examines these issues and possible options.

COMMERCIAL SPACE LAUNCHES: FAA [FEDERAL AVIATION ADMINISTRATION] NEEDS CONTINUED PLANNING AND MONITORING TO OVERSEE THE SAFETY OF THE EMERGING SPACE TOURISM INDUSTRY.
United States Government Accountability Office (GAO). October 20, 2006; Web-posted October 25, 2006.

Full report [pdf format, 69 pages]

This report discusses the federal role in commercial space launches and the government's response to emerging industry trends, both domestically and internationally. In this review, GAO addresses the following questions:

• How well does Federal Aviation Administration (FAA) oversee the safety of commercial space launches?
• To what extent is FAA responding to key emerging issues in the commercial space launch industry?
• What challenges does FAA face in regulating and promoting the commercial space launch industry?
• What are the key competitive issues affecting the U.S. commercial space launch industry, and to what extent are the industry and government responding to them?

The report reviews the overlapping interests of several U.S. government agencies in the development of space tourism, and the potential for conflicts of interest within FAA. In order for FAA to be prepared for a potential increase in space tourism launches, GAO recommends that FAA plan for the level of resources and expertise needed to assume its additional responsibilities for overseeing the safety of reusable launch vehicle operations at spaceports. GAO also recommends that FAA develop and issue guidance on the circumstances under which it would regulate crew and flight participant safety before 2012. Furthermore, to distinguish between FAA's and the Department of Commerce's promotional responsibilities, GAO urges FAA to develop a memorandum of understanding with Commerce regarding their respective roles and responsibilities.

THE U.S. JET TRANSPORT INDUSTRY: COMPETITION, REGULATION, AND GLOBAL MARKET FACTORS AFFECTING U.S. PRODUCERS.
United States Department of Commerce. International Trade Administration (ITA). March 2005.
Download the document [pdf format, 175 pages]

This U.S. Department of Commerce study responds to a request by Congress to examine market developments and government policies influencing the competitiveness of the United States jet transport aircraft industry. Section 819 of the "Vision 100-Century of Aviation Reauthorization Act" (P.L. 108-176) established the objectives of the study. The report focuses primarily on U.S. and European manufacturers of civil jet transports with 100 seats or more (referred to as large civil aircraft or LCA), as well as of the engines and major subsystems for those aircraft.

The report highlights the significant challenges facing the U.S. aerospace industry and the role government policies have on the competitiveness of U.S. industry. U.S. commercial aerospace companies involved in production of LCA have lost significant market share over the last 25 years to their European competitors. The Boeing Company is the only remaining U.S. manufacturer of large civil aircraft (down from three companies in the 1970s), and has laid off nearly a quarter of its work force since September 11, 2001. For the first time in history, in 2003 the European aircraft manufacturer Airbus delivered more commercial aircraft than Boeing and it did so again in 2004. U.S. manufacturers of aircraft engines have experienced similar (albeit less drastic) losses of global market share to their European competitors. U.S. LCA manufacturers also are facing increased competition from Canadian and Brazilian manufacturers of smaller regional jets, which increasingly are being used by airlines on routes traditionally served by large civil aircraft.

AA05098
Belfiore, Michael THE FIVE-BILLION STAR HOTEL (Popular Science, vol. 266, no. 3, March 2005, pp. 50-57)
View article on publisher's website

Robert Bigelow, who built the Budget Hotel empire from scratch, is exploring a new area of hotels that are literally "out of this world" -- and has founded Bigelow Aerospace, which will build the world's first hotel in space orbit. For one million dollars a night, guests can learn weightless aerobics, gaze at galaxies, and watch the Earth's oceans fly by. The technology to build the hotel comes from NASA, which abandoned the inflatable modules; Bigelow bought the patents and brought in engineers to continue the work. The main obstacle is being able to transport people to and from the hotel, so Bigelow has offered a 50-million-dollar prize to the company who can build a transport vehicle. A fan of civilian space exploration, Bigelow anticipates that his orbiting hotel will open in January 2010, and is taking reservations.

AA06266
PLUGGING INTO THE FUTURE (The Economist Technology Quarterly, June 10, 2006, pg. 30-32)
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A grassroots movement is building hybrid gas-electric cars that can be recharged from the electricity grid. Hybrid technology, pioneered by Toyota with its Prius, combines a gas engine with an electric motor and battery that never needs to be plugged in and gets more than 40 miles per gallon. This article is about a "motley group of hackers, entrepreneurs and idealists" that has sprung up "to boost the nascent technology of plug-in hybrids." One such idealist modified his Prius to go much further on battery power alone. He replaced the original nickel-metal hydride battery with a higher-capacity lithium-ion battery and hacked the control software to keep the gas engine from kicking in until the car is moving at high speed. As a result, his modified Prius travels more than 30 miles in an all-electric mode, compared with a mile or so for a standard Prius. Overall, his car gets 100 miles per gallon. His company, Energycs, is converting cars for others, and plans to offer plug-in retrofits to the public this year for around $12,000. Other companies are doing similar things.

CHINA'S IMPACT ON THE U.S. AUTOMOTIVE INDUSTRY.
Stephen Cooney. Library of Congress. Congressional Research Service. Updated April 4, 2006
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China is both the fastest growing motor vehicle market and the fastest growing vehicle producer. Output and sales have grown from less than two million vehicles annually before 2000 to nearly six million vehicles in 2005. In the number of vehicles that it manufactures China has passed Korea and France, is on pace to overtake Germany, and would then trail only the United States and Japan.

A disproportionate share of China's output has always been heavy vehicles, but since 2000, China's growth has been led by the increase in passenger cars. They now account for about half of China's production. Exports are growing much more rapidly than imports and are mostly light trucks shipped to developing country markets in Asia, Africa and the Middle East. China's industry has developed extensively with the aid of foreign direct investment, unlike those of Korea and Japan. Most experts do not see a high volume of exports from China into industrialized country markets in the near future.

By contrast, Chinese auto parts exports are already making inroads into the United States. While U.S. motor vehicle trade with China was insignificant in 2005, the United States imported $5.4 billion in parts from China, while it exported about one-tenth of that amount. China accounted for about 6% of U.S. auto parts imports in 2005, but the amount has quadrupled since 2000. Many of these imports are aimed at the aftermarket, as most of what China now exports to the U.S. market are standard products such as wheels, brake parts and electronics. But with high rates of investment in China by the leading U.S. manufacturers of both cars and parts, major companies such as GM look to increase sourcing from China.

AA05145
Koerner, Brendan RISE OF THE GREEN MACHINE (Wired, vol. 13, no. 4, April 2005)
View article on publisher's website

Toyota was the first automobile manufacturer to bring hybrid cars to the United States. The Prius is the best selling hybrid, and Toyota has plans to bring hybrids to the masses, by making the internal combustion engine obsolete. The EPA currently rates these dual electric powered cars as a "Super Ultra Low Emissions Vehicle". On average, the vehicle can get 60 miles per gallon, and emits 95 percent fewer carcinogens into the atmosphere. The new Prius will get better performance, and will be marketed to middle America as a good investment for the environment, does not need to be plugged in, and will save over 60 percent on fuel costs at the gas pump. With gasoline prices at their highest in years, Toyota wants a hybrid vehicle in every garage in America by 2020.

CHEMICAL REGULATION IN THE EUROPEAN UNION: REGISTRATION, EVALUATION, AND AUTHORIZATION OF CHEMICALS. Linda-Jo Schierow. Congressional Research Service (CRS), Library of Congress. June 7, 2007.
Full Text [pdf format, 4 pages]

On June 1, 2007, the European Union (EU) implemented a new law: Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH). REACH is intended to safeguard human health and the environment from hazardous chemicals while protecting European competitiveness. 

The final regulation reduces and coordinates EU regulatory requirements for chemicals, and shifts responsibility for safety from government to the industrial sector. It also encourages the use of less toxic chemicals in various chemical applications. However, the U.S. chemical industry believes that REACH is “impractical” while several public-interest groups urge Congress to adopt similar legislation.

FISHERIES OF THE UNITED STATES: 2006. Elizabeth S. Pritchard, Editor. Office of Science and Technology, National Marine Fisheries Service, National Oceanic and Atmospheric Administration, U.S. Department of Commerce. July 2007.
Full Text [pdf format, 119 pages]

This is a preliminary report for commercial and recreational fisheries in the U.S. The report includes information from U.S. territorial seas, the Exclusive Economic Zones (EEZ), and high seas. Data include commercial landings, employment, prices, production of processed products, and recreational catches.

REPORT ON THE STATUS OF THE U.S. FISHERIES FOR 2006. National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), U.S. Department of Commerce. June 2007.
Full Text [pdf format, 28 pages]

The 2006 report on the status of U.S. marine fish stocks shows a mixed result when compared to the 2005 report. Some stocks have improved while others have declined. However, the majority of the domestic fish stocks are either not overfished or not subject to overfishing. 

The National Marine Fisheries Service (NMFS) is dedicated to managing sustainable marine resources. The new Magnuson-Stevens Fishery Conservation and Management Reauthorization Act of 2006 (MSRA) calls for strong action to end overfishing and provides new management tools to accomplish this goal.

CONVENTIONAL ARMS TRANSFERS TO DEVELOPING NATIONS, 1998-2005.
Richard F. Grimmett. Library of Congress, Congressional Research Service. October 23, 2006.
Full report [pdf format, 98 pages]

CRS prepares this report annually to provide Congress with official, unclassified, quantitative data on conventional arms transfers to developing nations by the United States and foreign countries for the preceding eight calendar years for use in its various policy oversight functions. As used in this report, the "developing nations" category includes all countries except the United States, Russia, European nations, Canada, Japan, Australia, and New Zealand. A list of countries located in the regions defined for the purpose of this analysis - Asia, Near East, Latin America, and Africa - is provided at the end of the report.

Among the principal findings of the report:

• The value of all arms transfer agreements worldwide (to both developed and developing nations) in 2005 was nearly $44.2 billion. This is a notable increase in arms agreements values over 2004, and is the highest total for arms agreements during the last eight years.
• The value of all international arms deliveries in 2005 was $25.4 billion. This is a notable decrease in the total value of arms deliveries from the previous year (a fall of $7.3 billion), and the lowest deliveries total for the 1998-2005 period. Moreover, the total value of such arms deliveries worldwide in 2002-2005 ($124.1 billion) was substantially lower than the value of arms deliveries by all suppliers worldwide from 1998-2001 ($162.3 billion, a decline of over $38 billion).
• Developing nations from 2002-2005 accounted for 67.8% of the value of all international arms deliveries. In the earlier period, 1998-2001, developing nations accounted for 68.6% of the value of all arms deliveries worldwide. In 2005, developing nations collectively accounted for 69.9% of the value of all international arms deliveries.
• In 2005, the United States ranked first in the value of all arms deliveries worldwide, making nearly $11.6 billion in such deliveries or 45.6% of the total. This is the eighth year in a row that the United States has led in global arms deliveries. The United Kingdom ranked second in worldwide arms deliveries in 2005, making $3.1 billion in such deliveries. Russia ranked third in 2005, making $2.8 billion in such deliveries. These top three suppliers of arms in 2005 collectively delivered nearly $17.5 billion, 68.8% of all arms delivered worldwide by all suppliers in that year.

THE TRANSATLANTIC DEFENSE INDUSTRIAL BASE: RESTRUCTURING SCENARIOS AND THEIR IMPLICATIONS.
Terrence R. Guay. United States Army War College, Strategic Studies Institute (SSI). April 2005.
Download the document [pdf format, 40 pages]

This report argues that cooperation between U.S. and European industrial bases would provide greater benefits for both, but that there are currently deep divides between the defense sectors on either side of the Atlantic. Opportunities for the construction of a transatlantic defense sector are tangible, but significant obstacles may accelerate the formation of a bipolar industrial base. Guay says that while market forces played a key role in the transformation and consolidation of these sectors in recent years, political considerations are largely responsible for a restructuring process that has been almost entirely among U.S. firms in the United States and among European Union companies in Europe.

He examines the forces that have shaped the restructuring of the U.S. and European defense industries since the end of the Cold War, and presents factors that will influence further restructuring and consolidation in the short- and medium-terms. He contends that a transatlantic defense industrial base is preferable to a bipolar one, and recommends that the U.S. Government open its defense equipment market to more European firms, and that European governments reciprocate. Additionally, military forces should put greater effort into coordinating procurement requirements and needs, and firms should explore expanding transatlantic links.

DEFENSE TRADE: ARMS EXPORT CONTROL SYSTEM IN THE POST-9/11 ENVIRONMENT [GAO-05-234].
United States Government Accountability Office (GAO). February 16, 2005; Web-posted April 7, 2005.
Download the document [pdf format, 94 pages]

The U.S. government controls arms exports by U.S. companies to ensure that such exports are consistent with national security and foreign policy interests. There have been various efforts to change the arms export control system, which is overseen by the State Department (State).

Since the September 2001 terror attacks, the arms export control system has remained essentially unchanged, although new trends have emerged in the processing of arms export cases. The median processing time for export license applications and related cases began increasing in fiscal year 2003. State and the Department of Defense (Defense), which reviews export licenses, have continued to implement, through regulations and guidance, several initiatives primarily designed to streamline the processing of arms export licenses. According to State officials, they have not evaluated the effects of these initiatives on the export control system or revised the initiatives. However, applications processed under these initiatives have generally not been processed within the time frames established by State and Defense. For example, applications for Operation Iraqi Freedom are to be processed in 4 days if they require interagency review, but the median processing time for these applications in the first 7 months of fiscal year 2004 was 22 days.

State has sought limited coordination with the agencies responsible for enforcing U.S. arms export laws--the Departments of Homeland Security and Justice--regarding the initiatives designed to streamline arms export licensing. The only exceptions have been regarding proposed export licensing exemptions. Enforcement officials have raised concerns regarding licensing exemptions, including difficulties in enforcing the proper use of exemptions and the increased risk of diversion. According to enforcement officials, they face a number of challenges associated with arms export enforcement efforts, such as limited resources to conduct inspections and investigations and other difficulties in obtaining a criminal conviction for export violations.

U.S. DEFENSE ARTICLES AND SERVICES SUPPLIED TO FOREIGN RECIPIENTS: RESTRICTIONS ON THEIR USE [RL30982].
Richard F. Grimmett. Library of Congress. Congressional Research Service. Updated March 14, 2005.
Download the document [pdf format, 10 pages]

The Arms Export Control Act (AECA), as amended, authorizes the transfer by sale or lease of United States origin defense articles and services through the government-to-government foreign military sales (FMS) program or through the licensed commercial sales process. Section 3(a) of the Arms Export Control Act sets the general standards for countries or international organizations to be eligible to receive United States defense articles and defense services provided under this act. It also sets express conditions on the uses to which these defense items may be put. Section 4 of AECA states that defense articles and defense services shall be sold to friendly countries "solely for":

• "Internal security";
• "Legitimate self-defense"
• Enabling the recipient to participate in "regional or collective arrangements or measures consistent with the Charter of the United Nations";
• Enabling the recipient to participate in "collective measures requested by the United Nations for the purpose of maintaining or restoring international peace and security";
• Enabling the foreign military forces "in less developed countries to construct public works and to engage in other activities helpful to the economic and social development of such friendly countries."

Section 3(c)(2) of the Arms Export Control Act requires the President to report promptly to the Congress upon the receipt of information that a "substantial violation" described in section 3(c)(1) of the AECA "may have occurred." This Presidential report need not reach any conclusion regarding the possible violation or provide any particular data other than that necessary to illustrate that the President has received information indicating a specific country may have engaged in a "substantial violation" of an applicable agreement with the United States that governs the sale of U.S. defense articles or services. Since the major revision of U.S. arms export law in 1976, neither the President nor the Congress have actually determined that a violation did occur, thus necessitating the termination of deliveries or sales or other penalties set out in section 3 of AECA.

The United States Government has other options under the Arms Export Control Act to prevent transfer of defense articles and services for which valid contracts exist short of finding a foreign country in violation of an applicable agreement with the United States. These options include suspension of deliveries of defense items already ordered and refusal to allow new arms orders. The United States has utilized at least one such option against Argentina, Israel, Indonesia, and Turkey.

U.S. ARMS SALES: AGREEMENTS WITH AND DELIVERIES TO MAJOR CLIENTS, 1996-2003. [RL32689]
Richard F. Grimmett. Library of Congress. Congressional Research Service. December 8, 2004.
Download the document [pdf format, 10 pages]

This report provides background data on United States arms sales agreements with and deliveries to its major purchasers during calendar years 1996-2003. In a series of data tables, it lists the total dollar values of U.S. arms sales agreements with its top five purchasers in five specific regions of the world for three periods: 1996-1999, 2000-2003, and 2003 alone, and the total dollar values of U.S. arms deliveries to its top five purchasers in those same regions for the periods 1996-1999, 2000-2003, and for 2003 alone. In addition, the report provides data tables listing the total dollar values of U.S. arms agreements with and deliveries to its top 10 purchasers worldwide for the periods 1996-1999, 000-2003, and for 2003.

CONVENTIONAL ARMS TRANSFERS TO DEVELOPING NATIONS, 1996-2003. [RL32547]
Richard F. Grimmett. Library of Congress. Congressional Research Service. August 26, 2004.
Download the document [pdf format, 94 pages]

This report is prepared annually to provide unclassified quantitative data on conventional arms transfers to developing nations by the United States and foreign countries for the preceding eight calendar years. Some general data are provided on worldwide conventional arms transfers, but the principal focus is the level of arms transfers by major weapons suppliers to nations in the developing world.

Developing nations continue to be the primary focus of foreign arms sales activity by weapons suppliers. During the years 1996-2003, the value of arms transfer agreements with developing nations comprised 63.9% of all such agreements worldwide. More recently, arms transfer agreements with developing nations constituted 60.4% of all such agreements globally from 2000-2003, and 53.6% of these agreements in 2003.

The value of all arms transfer agreements with developing nations in 2003 was over $13.7 billion. This was a substantial decrease over 2002, and the lowest total, in real terms, for the entire period from 1996-2003. In 2003, the value of all arms deliveries to developing nations was nearly $17 billion, the lowest total in deliveries values for the entire period from 1996-2003 (in constant 2003 dollars).

In 2003, the United States ranked first in arms transfer agreements with developing nations with over $6.2 billion or 45.4% of these agreements. Russia was second with $3.9 billion or 23.4% of such agreements. In 2003, the United States ranked first in the value of arms deliveries to developing nations at $6.3 billion, or 37.1% of all such deliveries. The United Kingdom ranked second at $4 billion or 23.5% of such deliveries. Russia ranked third at $3.3 billion or 19.4% of such deliveries.

AA06400
REBUILDING MICROSOFT
Vogelstein, Fred. (Wired, October 2006, pp. 171-177)
Available online

Microsoft Founder Bill Gates has announced plans to give up many of his responsibilities at the software company he created more than 30 years ago, naming Ray Ozzie as the company's chief software architect. The inventor and principal executive behind the Lotus Notes application, Ozzie has a reputation for technological brilliance, but he takes the leadership role at Microsoft at a time when the company needs a new direction. The company's traditional desktop software products are no longer cutting-edge and Web-based applications are overtaking the industry. Long the leader in supplying PC programs, Microsoft is lagging behind in software development for the hot new gadgets in technology -- PDA's, cell phones, and iPods. In a memo to executives, Ozzie has said the company must move toward software services, and faster development of applications. While Microsoft is known for the creation of complex software products, Ozzie says, "Complexity kills. It sucks the life out of developers, it makes products difficult to plan build, and test, it introduces security challenges and it causes end-user and administrator frustration." He's already introduced new, edgier products, but fundamentally, Vogelstein reports, Ozzie's challenge will be convince Microsoft workers to change how they think about their product development, probably one of the hardest things the company has ever attempted.

OFFSHORING: U.S. SEMICONDUCTOR AND SOFTWARE INDUSTRIES INCREASINGLY PRODUCE IN CHINA AND INDIA.
United States Government Accountability Office (GAO). September 7, 2006.
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The GAO looked at three basic issues:

1. How has offshoring in semiconductor manufacturing and software services developed over time?
2. What factors enabled the expansion of offshoring in these industries?
3. As these industries have become more global, what have been the trends in their U.S.-based activities?

In the 1960s, the U.S. semiconductor industry began offshoring labor-intensive manufacturing operations. Increasingly complex operations, including wafer fabrication and some research and development (R&D) and design work, were offshored in the 1970s and 1980s. Semiconductor assembly and testing was the first to move to Asia, followed by fabrication and, more recently, some design operations.

Software services offshoring began in the 1990s after Internet communications made it possible to trade services such as software programming and software design. The year 2000 changeover hastened this offshoring trend related to software services because programmers knowledgeable in the appropriate programming languages were available, primarily in India. In the 2000s, firms further expanded their offshoring operations, based on the low-cost and high-quality work from the offshored services undertaken in the late 1990s.

The report compares the offshoring experiences in semiconductor manufacturing and software services. It notes the importance of understanding the implications of rising foreign competition and technology change, and of enhancing traditional U.S. strengths in areas supporting innovation and new commercial applications.

REPORT OF THE TASK FORCE ON HIGH PERFORMANCE MICROCHIP SUPPLY.
United States Department of Defense, Defense Science Board (DSB). Task Force on High Performance Microchip Supply. February 2005; Web-posted March 2005.
Download the document [pdf format, 118 pages]

Most leading edge microchip wafer production facilities (foundries), with the exception so far of IBM and possibly Texas Instruments, are controlled and located outside the United States. The driving forces behind the "alienation" of foundry business from the United States to other countries include the lower cost of capital available in developing countries, through foreign nations' tax, market access requirements, subsidized infrastructure and financing incentives (including ownership), and the worldwide portability of technical skills, equipment and process know-how.

According to this report, "The Department of Defense (DOD) and its suppliers face a major integrated circuit supply dilemma that threatens the security and integrity of classified and sensitive circuit design information, the superiority and correct functioning of electronic systems, system reliability, continued supply of long system-life and special technology components." The Defense Science Board presents recommendations to avoid a shortage in the supply of microchips to the DOD.

FOOD AND AGRICULTURAL IMPORTS FROM CHINA. Geoffrey S. Becker. Congressional Research Service (CRS), Library of Congress. Updated July 17, 2007.
Full Text [pdf format, 18 pages]

U.S. food and agricultural imports have increased significantly in recent years especially from China, which increased 346% from 1996 to 2006. Recent incidents of imported food products have raised questions in Congress concerning the current U.S. food safety system. Congress has held hearings, requested reports, and introduced bills on food safety oversight with the possible creation of a new food safety administration.

TUNA IN TROUBLE: MAJOR PROBLEMS FOR THE WORLD’S TUNA FISHERIES.
World Wildlife Fund. January 2007.
Full Text [pdf format, 25 pages]

There are a number of urgent problems facing the world’s tuna fisheries; such as, (1) stock declines; (2) poor conservation and management strategies; (3) high levels of illegal, unreported, and unregulated (IUU) fishing; and (4) significant bycatch. The primary mechanism for managing fisheries on the high seas is the Regional Fisheries Management Organizations (RFMOs) established by governments worldwide. This brief highlighted the tuna RFMOs and how they failed to meet their obligations as well as the failure of the international community to prevent overexploitation.

This brief provided background information for the RFMO meeting in Kobe, Japan in January 2007.

FOOD SAFETY: EXPERIENCES OF SEVEN COUNTRIES IN CONSOLIDATING THEIR FOOD SAFETY SYSTEMS [GAO-05-212].
United States Government Accountability Office (GAO). February 22, 2005.
Download the document [pdf format, 68 pages]

This report examines the food safety systems of Canada, Denmark, Germany, Ireland, the Netherlands, New Zealand, and the United Kingdom. Although there are significant differences among these systems, they all have one aspect in common -- each established a single agency to lead food safety management or enforcement of food safety legislation. These countries had two primary reasons for consolidating their food safety systems -- public concern about the safety of the food supply and the need to improve program effectiveness and efficiency. Countries faced challenges in (1) deciding whether to place the agency within the existing health or agriculture ministry or establish it as a stand-alone agency while also determining what responsibilities the new agency would have and (2) helping employees adjust to the new agency's culture and support its priorities.

GAO describes the approaches and challenges these countries faced in consolidating food safety functions, including the benefits and costs cited by government officials and other stakeholders. In commenting on a draft of this report, the Department of Health and Human Services (HHS) and the Department of Agriculture (USDA) said that the countries' consolidation experiences have limited applicability to the U.S. food safety system because the countries are much smaller than the United States. GAO, however, disagrees, pointing out that although the seven countries we reviewed are much smaller than the United States, they are also high-income countries where consumers have very high expectations for food safety. Consequently, GAO believe that the countries' experiences in consolidating food safety systems can offer useful information to U.S. policymakers.

FOOD SAFETY AND AGRICULTURAL HEALTH STANDARDS: CHALLENGES AND OPPORTUNITIES FOR DEVELOPING COUNTRY EXPORTS.
World Bank. Web-posted January 25, 2005.
Download the document [pdf format, 166 pages]

According to this report, developing countries faced with rising sanitary and phytosanitary (SPS) standards in their export markets can improve their market access by adopting a proactive approach to food safety, agricultural health and trade. At the same time, according to the authors, high-income countries should reorient assistance flows to such countries to help them build the capacity to effectively manage food safety and agricultural health safety risks.

SPS standards have been used by some countries as barriers to trade, but developing countries should see them as potential catalysts for modernizing their export supply and regulatory systems and adopting safer and more sustainable production and processing systems, a senior World Bank official said on Wednesday. "Food safety and agricultural health risk management should be considered as a core competence in the competitiveness of developing countries," the report says. "For those countries and suppliers who are well prepared, rising standards represent an opportunity; for those who are poorly prepared, they pose safety and market access risks."

The report incorporates case studies of high-value food products like fish and shrimp, fruits and vegetables, animals and animal products, and nuts and spices that have posed SPS compliance challenges for a significant number of developing countries. High-value food products now account for 50 percent of the total value of food exports of developing countries, up from 31 percent in 1980-1981.

THE MEANS TO COMPETE: BENCHMARKING IT INDUSTRY COMPETITIVENESS. Kim Thomas. Business Software Alliance, Economist Intelligence Unit. July 2007.
Full Text [pdf format, 30 pages]

Countries that generate information technology (IT) software, hardware, or services contribute 5% to the gross domestic product, and IT is also a major source of labor productivity growth. IT’s domestic industry growth relies on the quality of the information technology, communication infrastructure, supply of local talent, research and development environment, and laws and regulations. 

This report compares the IT industry environment in 64 countries (South Africa, incidently, is ranked at 37). The key findings are: (1) the US has the most positive IT environment; (2) skills-rich emerging markets will challenge today’s performers; (3) skill requirements are changing rapidly; and (4) open competition must be supported by intellectual property rights protection.

FEDERAL TERRORISM REINSURANCE: AN UPDATE.
David Torregrosa.
Congress of the United States. Congressional Budget Office (CBO). January 6, 2005.
Download the document [pdf format, 38 pages]

Enacted in response to the events of September 11, 2001, the Terrorism Risk Insurance Act (TRIA) created a temporary federal reinsurance program for terrorism insurance. The program had two main aims: to limit insurance companies' risks of financial loss from terrorist attacks and to increase the availability of terrorism coverage for property owners. TRIA is scheduled to expire on December 30, 2005, and the Congress has been considering proposals to extend the terrorism reinsurance program. This Congressional Budget Office (CBO) analysis examines the effects of TRIA on insurance markets, the U.S. economy, and taxpayers. The conclusions that it reaches may be relevant to the choices facing policymakers:

• A primary consideration in the decision about TRIA's future is how long the elevated risk of terrorism is expected to last. If the increase in risk turns out to be temporary, TRIA may have succeeded in keeping property owners and insurance companies from overreacting to the attacks of September 11. By providing zero-premium coverage and not requiring policyholders to take actions to reduce their exposure to losses, TRIA effectively lessened incentives for property owners to make costly adjustments to a short-term threat.
• However, the growing belief that the terrorism threat is long-lived does not support a simple extension of TRIA. A persistent high-level risk of terrorism implies that the owners of assets at risk should adopt measures to reduce their losses-for example, by relocating some activities, retrofitting existing structures, investing in disaster-recovery information systems, and installing security systems. By subsidizing insurance rates, TRIA weakens owners' incentives to make those investments.
• If TRIA expired, reinsurers would most likely continue their previous practice of not covering losses from nuclear, biological, chemical, and radiological attacks. That exclusion would be important mainly for the workers' compensation market, because primary insurers that offer workers' compensation policies are required to cover loses from all causes. If such insurers were unable to diversify that catastrophic risk through reinsurance, rates for workers' compensation policies could rise substantially, at least in the near term.
• In the event that the TRIA program ended and an unexpectedly large terrorist attack occurred, insurance markets would probably be disrupted again, and coverage could be unavailable for some high-risk properties.

REGULATING ACCESS TO AND CONTROL OF DANGEROUS PATHOGENS: IMPLICATIONS FOR THE PHARMACEUTICAL INDUSTRY.
Rita Grossman-Vermaas, Brian Finlay and Elizabeth Turpen. Henry L. Stimson Center. September 2006.
Download [pdf format, 40 pages]

Research addressing the threat posed by dangerous pathogens has focused almost exclusively on controlling access to the most hazardous pathogens, and monitoring research on a defined list of potentially dangerous agents. Relatively little attention has focused on the movement of these dangerous pathogens beyond their collection and R&D stages. The authors argue that the rapidly expanding market for biologics for therapeutic uses generally, and medical bioagents and toxins specifically, may present new avenues for bioterrorists to attack the United States.

The study represents the culmination of intensive research and discussions with the private sector, industry and security experts on the national security implications of potentially dangerous biological agents and products. The report offers a wide spectrum of proposals and recommendations designed to provide a layered defense against the misuse or misapplication of 'select agents,' as well as pharmaceuticals derived from another category of biological materials - 'select products.'

PHARMACEUTICAL PRICE CONTROLS IN OECD COUNTRIES: IMPLICATIONS FOR U.S. CONSUMERS, PRICING, RESEARCH AND DEVELOPMENT, AND INNOVATION.
United States Department of Commerce, International Trade Administration (ITA). December 21, 2004.
Download the document [pdf format, 125 pages]

Alternate URL

This study examined the drug price regulatory systems of 11 OECD countries and found that all rely on some form of price controls to limit spending on pharmaceuticals. The principal methods these governments employ are reference pricing, approval delays and procedural barriers, restrictions on dispensing and prescribing, and reimbursement. HHS stresses that these methods prevent companies from charging a market-based price for their products. They also tend to be nontransparent, as the criteria and rationale for certain pharmaceutical prices or reimbursement amounts are not fully disclosed even to the pharmaceutical companies seeking to market their drugs.
Appendix C, which occupies the last 55 pages of the report, summarizes health care and pharmaceutical issues in Australia, Japan, Republic of Korea, France, Germany, Greece, Poland, United Kingdom, Switzerland, Canada and Mexico.

AA05378
Knappe, Matthias. EXPORTING TEXTILES & CLOTHING: WHAT'S THE COST FOR LDCs? (International Trade Forum, No. 1, 2005, pp. 19-24)
View article on publisher's website

Knappe, senior market advisor at the International Trade Centre, says the end of quotas in the textile and clothing industry benefits large Asian producers, but other countries still have a stake in the business. It is not clear, he explains, what will happen in least developed countries (LDCs) and other small, vulnerable countries with low-value products, fragmented industries reliant on quota protection, and little regional cooperation. LDCs will need to change their strategy to survive the higher standards brought on be increased competition, he says. Some of Knappe's recommendations are: take over responsibilities along the textile and clothing value chain, accelerate South-South cooperation to tap into the markets of other developing countries, cooperate regionally to benefit as much as possible from preferential and differential treatment, and address weaknesses in trade facilitation to create the necessary enabling environment for business.

U.S.-CHINA TRADE: TEXTILE SAFEGUARD PROCEDURES SHOULD BE IMPROVED [GAO-05-296].
United States Government Accountability Office (GAO). April 4, 2005; Web-posted April 5, 2005.
Download the document [pdf format, 59 pages]

U.S. textile and apparel imports from China have more than doubled in value since China became a World Trade Organization (WTO) member in December 2001. When joining the WTO, China agreed to a special textile safeguard mechanism applicable only to that country. The China textile safeguard allows WTO members to place defined limits on particular textile and apparel imports from China through the end of 2008, despite the general elimination of most textile quotas on January 1, 2005.

In this report, GAO:

1. Describes the mechanism,
2. Describes requests for safeguard action filed by U.S. producers and the results of these requests,
3. Evaluates U.S. agency procedures for transparency and accessibility.

The purpose of the China textile safeguard is to limit surging imports and foster the orderly development of trade in textiles and apparel from China. Safeguards are import restrictions, normally of limited duration and extent, which provide an opportunity for domestic industries to adjust to increasing imports. The China textile safeguard permits WTO members, including the United States, to temporarily restrict growth in specific imports from China even though textile and apparel quotas in general have been eliminated.

GAO concludes that in the U.S., procedural shortcomings have impaired effective application of the China safeguard. These shortcomings have lead to, among other things, uncertainty and delay that may weaken safeguard actions on some products that were recently released from quota restrictions. Similarly, lack of production data impaired access to safeguard measures for U.S. sock producers, and may pose similar problems should other producers in similar circumstances seek application of this mechanism.

INSTITUTIONS AND TELECOMMUNICATIONS INFRASTRUCTURE IN LOW AND MIDDLE-INCOME COUNTRIES: THE CASE OF MOBILE TELEPHONY. Federica Maiorano and Jon Stern. Joint Center, AEI-Brookings Joint Center for Regulatory Studies. May 2007.
Full Text [pdf format, 45 pages]

“This paper studies the relationship between regulation and performance in the mobile telecommunications sector.” This analysis tries to separate the impact of regulation from the potential indirect effects of country institutions. The evidence presented confirms a “positive effect of regulatory institutions on telecommunications penetration and also highlights the contribution of a more widespread mobile telecommunications infrastructure to higher levels of GDP [gross domestic product] per capita.”

ANNUAL REPORT AND ANALYSIS OF COMPETITIVE MARKET CONDITIONS WITH RESPECT TO DOMESTIC AND INTERNATIONAL SATELLITE COMMUNICATIONS SERVICES.
U.S. Federal Communications Commission. March 26, 2007.
Full Text [word format, 69 pages]

This is the first annual report submitted by the U.S. Federal Communications Commission to the U.S. Congress concerning the status of market competition for domestic and international satellite communications services. The report also reviews the prevailing conditions in the satellite services market since 2000. 

The Commission concludes that there is effective competition in both wholesale and retail satellite services and that the market for commercial communications satellite services is also competitive. 

TOBACCO SETTLEMENT: STATES' ALLOCATIONS OF FISCAL YEAR 2004 AND EXPECTED FISCAL YEAR 2005 PAYMENTS.
[GAO-05-312]. United States Government Accountability Office (GAO). March 21, 2005; Web-posted March 22, 2005.
Download the document [pdf format, 78 pages]

In the 1990s, states sued major tobacco companies to obtain reimbursement for health impairments caused by the public's use of tobacco. In 1998, 46 states (all but Florida, Minnesota, Mississippi and Texas) and four of the nation's largest tobacco companies signed a Master Settlement Agreement (MSA) that requires the tobacco companies to make annual payments to the states in perpetuity as reimbursement for past tobacco-related health care costs. The MSA commits the tobacco companies to pay the states approximately $206 billion over the first 25 years. Some of the states have arranged to receive upfront proceeds based on the amounts that tobacco companies owe by issuing bonds backed by future payments.

The MSA allows states to use their tobacco settlement payments for any purpose. States reported that they used the largest portions of the fiscal year 2004 payments to address budget shortfalls (about 44 percent) and to fund health-related programs (20 percent). Compared with fiscal year 2004, states in fiscal year 2005 expect to decrease allocations to address budget shortfalls (11 percent) and to increase allocations to both health-related programs (32 percent) and debt service on securitized funds (23 percent).

PUBLIC TRANSPORTATION AND PETROLEUM SAVINGS IN THE U.S.: REDUCING DEPENDENCE ON OIL.
Linda Bailey. ICF International. January 2007.
Full Text [pdf format, 35 pages]

This analysis looks at what public transportation could save in gasoline consumption both individually and nationally, and it explores the possible future benefits of more Americans using public transportation. The study found that public transportation usage reduces gasoline consumption by 1.4 billion gallons each year--based on current public transportation usage. It also found that this savings amounts to 108 million fewer cars on the road; 34 fewer supertankers leaving the Middle East; over 140,000 fewer tanker trucks making deliveries; and a cumulative saving of 3.9 million gallons of gas each day.
(This analysis was prepared for the American Public Transportation Association.)

LEGAL DEVELOPMENTS IN INTERNATIONAL CIVIL AVIATION.
Todd B. Tatelman. Library of Congress, Congressional Research Service (CRS). Updated August 25, 2006.
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Much of the U.S. law regarding civil aviation has been developed through a combination of domestic laws and international agreements between the United States and other nations. In 1992, the United States Department of Transportation (DOT) introduced the "Open Skies" initiative and began negotiating and entering into modern civil aviation agreements with foreign countries, as well as individual members of the European Union (EU). As a result of a 2002 European Court of Justice ruling that several portions of these "Open Skies" Agreements violated EU law, the United States and the EU have been negotiating a new Open Skies Agreement.

A tentative agreement appears to exist between the parties that if enacted would, among other things, allow every EU and U.S. airline to fly between every city in the European Union and every city in the United States, and would permit U.S. and EU airlines to determine the number of flights, their routes, and fares according to market demand. However there appears to remain several areas of international civil aviation law that the tentative agreement does not address. Among them are the issues of foreign ownership and control, participation in the Civil Reserve Air Fleet Program, and cabotage. [U.S. law contains a general restriction on cabotage, defined as the transportation of passengers or cargo by foreign air carriers from one point in the United States to another.]

This report provides background on U.S. civil aviation agreements, updates the current status of U.S. "Open Skies" negotiations with the EU, and addresses the legal debate concerning both the foreign ownership and control rules and the cabotage laws.

LASERS AIMED AT AIRCRAFT COCKPITS: BACKGROUND AND POSSIBLE OPTIONS TO ADDRESS THE THREAT TO AVIATION SAFETY AND SECURITY. [RS22033].
Bart Elias. Library of Congress. Congressional Research Service. January 26, 2005.
Download the document [pdf format, 6 pages]

A recent rash of incidents involving lasers aimed at aircraft cockpits has raised concerns over the potential threat to aviation safety and security. While none of these incidents has been linked to terrorism, security officials have expressed concern that terrorists may seek to acquire and use higher powered lasers to, among other things, incapacitate pilots. There is also growing concern among aviation safety experts that the ubiquity and low cost of handheld laser devices could increase the number of incidents where pilots are distracted or temporarily incapacitated during critical phases of flight. Possible options to mitigate the threat of lasers include restricting the sale or use of certain laser devices; amending criminal statutes associated with interfering with flight operations; providing pilots with laser eye protection; expanding and enforcing laser free zones around airports; and educating the public regarding the risks of lasers to aviation safety.

POCKET GUIDE TO TRANSPORTATION.
United States Department of Transportation (DOT), Bureau of Transportation Statistics (BTS). January 2005.
Download the document [pdf format, 56 pages]

This annual compilation of transportation-related data provides facts and figures on diverse matters such as: the number and types of "Prohibited Items Intercepted at U.S. Airport Screening Checkpoints"; the average driving time and distance for automobile drivers in the U.S.; "U.S. Airports with the Highest Percentage of Arriving Passenger Flight Delays"; and "U.S. Trade in Transportation-Related Commodities."

GENERAL AVIATION SECURITY: INCREASED FEDERAL OVERSIGHT IS NEEDED, BUT CONTINUED PARTNERSHIP WITH THE PRIVATE SECTOR IS CRITICAL TO LONG-TERM SUCCESS. [GAO-05-144]
United States Government Accountability Office (GAO). November 10, 2004; Web-posted December 10, 2004.
Download the document [pdf format, 65 pages]

General aviation flight operations comprises personal/family transportation, power line inspection and repair, pipeline patrol, training, transporting medical supplies, emergency services, rescue operations, wildlife and land surveys, traffic reporting, agricultural aviation, firefighting, and law enforcement. General aviation accounts for three-quarters of all aircraft that take off and land in the United States. These aircraft encompass a wide range of flight operations at nearly 19,000 general aviation airports nationwide. According to the National Air Transportation Association, the general aviation industry contributes about $100 billion to the U.S. economy each year and accounts for about 1.3 million jobs. Federal intelligence agencies have reported in the past that terrorists have considered using general aviation aircraft for terrorist acts and that the September 11 terrorists learned to fly at flight schools in Florida, Arizona, and Minnesota. In addition, the 9/11 Commission identified concerns that vulnerabilities continue to exist in general aviation.

To assess the status of general aviation security, GAO examined the following questions: (1) What actions has the federal government taken to identify and assess threats to, and vulnerabilities of, general aviation, and communicate that information to stakeholders? (2) What additional steps has the federal government taken to strengthen general aviation security, and what, if any, challenges does the government face in further enhancing security? (3) What steps have non-federal stakeholders taken to enhance the security of general aviation?

This report is intended to summarize, in a publicly releasable form, GAO's overall findings and to confirm TSA and the Federal Aviation Administration's (FAA) agreement to take action to better assess the potential for terrorist misuse of general aviation aircraft, improve the communication of terrorist threat information to the general aviation community, help manage security risks associated with access to general aviation aircraft and airspace, and help ensure that temporary flight restrictions issued for indefinite periods of time are reviewed, revalidated, and consistently applied. Information determined to be sensitive has been removed from this report.