United States Trade Developments 2011-2012

United States Trade Developments, 2011-2012, provides an overview of the most relevant developments in United States trade relations with Latin America and the Caribbean and of the measures that inhibit the free flow of goods among countries in the Western Hemisphere.

Global trade growth slowed down in 2012; the World Trade Organization (WTO) projects real trade growth will reach 2.5% in 2012, as compared to a 5% increase in 2011. The debt crises in Europe, the slower than expected recovery in the U.S., and reduced growth in the Chinese economy have contributed to this slowdown.

The United States’ trade policy in 2012 focused on the negotiation of the Trans-Pacific Partnership (TPP), an ambitious trade agreement that would establish a stable commercial presence for the U.S. in the Asia-Pacific. The U.S. Generalized System of Preferences (GSP) program was renewed on October 21, 2011, through July 31, 2013. The Andean Trade Preference Act (ATPA) was also renewed along with GSP. It is expected that both GSP and ATPA will be renewed again.  The Caribbean Basin Initiative programs will expire on September 30, 2020.

At the end of the year, the package passed by Congress to avoid the “fiscal cliff “included an extension of the 2008 Farm bill for one year. However, Congress is expected to elaborate a 5 year new bill in 2013.
The report also includes discussions on two special topics that could have a significant impact on U.S. trade: the recent advances in hydraulic fracturing and its impact on oil and natural gas production and the energy outlook of the United States; and the comprehensive health care reform in the U.S. and its potential effects on trade in health services within the region.

The second part of the report highlights the most recent developments on trade inhibiting measures in three main areas: import policies, dispute settlement and agricultural support.