News

News

A weekly service provided to the American Chambers of Commerce in Europe

ECONOMIC NEWS

U.S. IMPORT AND EXPORT PRICE INDEXES - APRIL 2002

The U.S. Import Price Index increased 1.4 percent in April, the Bureau of Labor Statistics of the U.S. Department of Labor reported. The increase--which followed a 1.2 percent rise in March--continued to be led by rising petroleum prices. The rise in overall import prices in April marked the third monthly increase in the past four months for this index. Despite the recent gains, the index was 3.9 percent below its level a year ago. The April increase was led by a continued rise in petroleum prices, which increased 12.1 percent last month after gaining 14.5 percent in March. For the year ended in April, however, petroleum prices were down 2.2 percent. Prices for non-petroleum imports also increased in April--up 0.4 percent, the largest monthly increase for this index since January 2001.

The Export Price Index also increased in April, up 0.4 percent, after gaining 0.3 percent the previous month. During the year ended in April, however, the non-petroleum index fell 3.3 percent. Prices for overall exports increased 0.4 percent in April, the largest one-month increase for this index since September 2000. Export prices were down 1.9 percent for the year. The upturn in April was the result of rising prices for both agricultural and nonagricultural export prices. The price index for agricultural exports rose 0.8 percent in April, attributable primarily to higher prices for vegetables, soybeans, and wheat.

ASHCROFT ANNOUNCES NEW SYSTEM FOR TRACKING FOREIGN STUDENTS

U.S. Attorney General Ashcroft has announced a new system for tracking the more than one million foreign individuals who are in the United States attending colleges, universities and trade schools. Ashcroft said the Student Exchange and Visitor Information System, or SEVIS, would bring the nation's student visa system into the 21st century -- taking advantage of the latest technology to link colleges and universities to the U.S. Immigration and
Naturalization Service (INS) in a centralized, rapid-access reporting system. SEVIS will make information submitted by learning institutions -- such as whether a student has enrolled, dropped out or been expelled -- available centrally to the INS in a database. It will also allow schools to transmit the information electronically via the Internet. It will also help to reduce student visa fraud. The new system will be implemented on a voluntary basis beginning July 1 and become mandatory on January 30, 2003.

PRESIDENT BUSH SIGNS BORDER SECURITY AND VISA ENTRY REFORM ACT

President Bush signed the Enhanced Border Security and Visa Entry Reform Act into law on May 14. The new legislation will increase the size of the security force guarding U.S. borders, facilitate the use of technology to strengthen border management operations, and require foreign visitors to carry tamper-proof passports and visas. By introducing the latest technological advances into border security measures, the legislation will help "deny fraudulent entry into America," Bush declared.

USDA BEGINS WORK ON FARM BILL IMPLEMENTATION

Just two days after President Bush signed the Farm Security and Rural Investment Act of 2002 into law on May 13, Agriculture Secretary Ann M. Veneman announced the formation of a Farm Bill Working Group, consisting of USDA's Chief Economist, Budget Director and Sub-cabinet officials that will be instrumental in ensuring appropriate planning, coordination and implementation. Veneman noted that the farm bill contains new programs that are widespread and impact many sectors including farm services, natural resources, conservation, rural development, nutrition, food safety, research, pests and diseases, as well as international trade. The measure establishes new authorities and additional rules, regulations and procedures. Secretary Veneman assured farmers that the USDA team is working hard to implement the new programs and outlined several measures already underway, including: the creation of a farm bill website (http://www.usda.gov/farmbill); implementing eGovernment, which will soon allow producers to complete and submit some forms on-line; developing and sending to county offices new software to aid in updating producer information; meeting with representatives of farm and commodity organizations; and developing informational materials about new programs.

SENATE APPROVES TRADE BILL AMENDMENT THAT DREW VETO THREAT

Senators debating trade promotion authority (TPA), otherwise known as fast track, have voted for an amendment that opponents including the Bush administration said would wreck the bill. In the key vote May 14, senators voted 61-38 not to table, or kill, the provision called the Dayton-Craig amendment even after three administration officials said they would recommend President Bush veto any bill including it. Senators later voted by voice vote on passing the amendment itself. Under the Dayton-Craig amendment, those restrictions would not apply to parts of any trade agreement concerning changes to antidumping, Section 201 safeguards and other trade remedy laws.

INS ACCEPTING SPOUSAL WORK AUTHORIZATION APPLICATIONS

The Immigration and Naturalization Service is now accepting Spousal Work Authorization Applications, which will qualify the spouses of certain nonimmigrant workers to work in the United States for the employer of their choice. The procedures established by the INS for processing the application are different depending upon whether the person is a spouse of an L-1, E-1, or E-2 nonimmigrant worker. For details regarding the application process, please visit http://www.ins.gov/graphics/services/visas.htm.

COMMERCE FINDS GERMAN, RUSSIAN, SPANISH STEEL BEAMS DUMPED IN U.S.

The U.S. Commerce Department has ruled that structural steel beams imported from seven markets were dumped in the United States. A May 14 final determination affects the products from China, Germany, Luxembourg, Russia, South Africa, Spain and Taiwan. Steel beam imports from Italy, however, were not sold below fair value, the department found. The dumping margins ranged from 5.2 to 230.6 percent. Commerce estimated the dumping margins as follows: Germany: Salzgitter AG, 35.75 percent; all others 8.09; Luxembourg: ProfilARDBED, S.A., 15.23 percent; Russia: Nizhny Tagil Iron & Steel Works, 230.66 percent; Spain: Aceralia Corporacion Siderurgica, S.A., 5.19 percent. Imposition of antidumping duties requires affirmative final determinations both from the Commerce Department that dumping occurred and from the U.S. International Trade Commission (USITC) that U.S. industry was injured or threatened. The final USITC determination is expected in June.

U.S. CHAMBER OF COMMERCE HOSTS USA MEETING 2002 WORLD ECONOMIC FORUM

This week the National Chamber Foundation of the U.S. Chamber of Commerce will host the USA Meeting 2002 World Economic Forum. Paul D. Wolfowitz, U.S. Deputy Secretary of Defense, Javier Solana Madariaga, EU High Representative for the Common Foreign and Security Policy, Secretary General of the Council, and Robert Zoellick, U.S. Trade Representative are a few of the speakers participating in this year’s Forum. In addition, there will be a trade update panel moderated by Thomas J. Donohue, CEO and President of the U.S. Chamber, and Klaus Schwab, President of the Word Economic Forum.

BOLKESTEIN TO VISIT U.S. CHAMBER OF COMMERCE

The Europe & Eurasia Business Committee of the U.S. Chamber of Commerce will host a working roundtable meeting with European Commissioner of the Internal Market and Taxation Frederik Bolkestein from 11:00 a.m. – 12:00 p.m. on May 28. Commissioner Bolkestein will discuss pension reform, accounting standards, and the growth and development of capital markets in an enlarging European Union.