February 2008 Report

BIG NEWS IN THIS ISSUE

1) Chamber Comments on Regulatory Impact on Trade and Investment in Comments to OMB and the EU

2) Chamber Letter Prods Movement with Japanese Fair Trade Commission

3) Update on Antitrust Technical Assistance

REGULATION AROUND THE GLOBE

U.S. Chamber of Commerce Events
- Morning Discussion Series on “Trade Liberalization and Competitive Markets”
- Chamber hosts Prime Minister of Denmark: “Meeting Global Challenges: Strengthening the Transatlantic Partnership”
Antitrust/Competition
- EU hits Microsoft with record fine
- What antitrust issues arise with Microsoft buying Yahoo?
State-Owned Enterprises and Subsidies
- China’s advantage
Intellectual Property
- Lilly loses trademark fight in UK courts
Regulatory Cooperation at Work
- EU to allow U.S. poultry imports
- Groundwork to improve global trade of biofuels
- U.S. –China Futures Arrangement for enhanced cross-border cooperation signed

CALENDAR OF UPCOMING EVENTS

· “Meeting of the Advisory Committee on Int’l Economic Policy”

· “Vietnam Standards Training Program with ANSI”

· “The Declining Dollar and the Global Economy”

· “2^nd Annual Capital Markets Summit”

· Morning Discussion Series on “Trade Liberalization and Competitive Markets” w/ Shanker Singham

BIG NEWS IN THIS ISSUE

Chamber Comments on Regulatory Impact on Trade and Investment in Comments to OMB and the EU – February 8^th - The U.S. Chamber of Commerce responded to the Office of Management and Budget’s request for comments on their joint report with the European Commission to review regulatory impact assessment guidelines on transatlantic trade and investment. The Chamber’s Regulatory Affairs Department and GRC Project worked together to develop comments that spelled out how improvements in the regulatory process can mitigate adverse impacts on trade and investment. The Chamber also worked with BUSINESSEUROPE to generate a complimentary set of comments.

The GRC Project has aggressively pushed for such an assessment since last summer and applauds OMB and the EC in their efforts to minimize trade distorting regulations. Now we must work to support OMB and the EC in implementing the best suggestions received from the comment period.

Chamber Letter Prods Movement with Japanese Fair Trade Commission – February 14^th - The Japanese Fair Trade Commission (JFTC) agreed to throw out their appeals system for cartels and bid-rigging cases and allow companies to take appeals directly to court. The Chamber sent a letter to the JFTC in December decrying proposed amendments to their Antimonopoly Act (AMA) that would have altered investigatory procedures and violated due process rights. The Keidanren and BUSINESSEUROPE also sent similar letters. The Chamber has followed up that letter with another asking the JFTC to go further and allow all appeals to be overseen by an independent judiciary.

FTC to end “unfair” hearings - Asahi

Update on Antitrust Technical Assistance – February 6^th – Stan Anderson, Chair of the GRC Project participated on a panel discussing “Perspectives on Antitrust Technical Assistance Needs across the Globe.” This panel was part of a day long seminar that the FTC and DoJ hosted on the future of U.S. technical assistance. As part of the seminar, the FTC and DoJ released a paper that explains the history of their work in technical assistance. Also, the Social Science Research Network produced a research paper focusing on the use of long term advisors and short term interventions that play a particularly important part of technical assistance and capacity building. The GRC Project has been instrumental in securing resources for the FTC and DOJ to spend more money on antitrust technical assistance.

Experience with Technical Assistance for the Effective Application of Competition Laws- FTC and DoJ

· An Empirical Evaluation of Long Term Advisors and Short Term Interventions in Technical Assistance and Capacity Building – Social Science Research Network

REGULATION AROUND THE GLOBE

U.S. Chamber of Commerce Events

Morning Discussion Series on “Trade Liberalization and Competitive Markets”

Due to the great success and response of the recent event The Basis of a 21st Century Trade Policy, the Chamber has invited Shanker Singham back for a series of five events to take a more in-depth look at trade and competition policy in specific sectors. The GRC Project will host Mr. Singham as he continues the discussion arising from his new book, A General Theory of Trade and Competition: Trade Liberalisation and Competitive Markets, which establishes a general theory of trade and competition and attempts to solve market access problems for firms using this new paradigm. Each meeting in the series will focus on specific chapters in his book, providing a thorough analysis and a chance to discuss the challenges and opportunities that surround each respective area. The focus areas and dates are as follows:

IP, Competition, and Trade: IP as a Property Right – March 12
Trade in Services: Pro-competitive Regulation – March 25
Competing with State Owned Companies – March 27
Competition and Regulated Industries: Electricity, Gas, and Telecommunications – April 1
Trade in Financial Services – April 4

Free registration and continental breakfast will begin at 8:40 a.m. The program will begin at 9:00 a.m. sharp and run until 10:00 a.m. Please RSVP by replying to [email protected] and signify which dates you would like to attend.

Chamber hosts Prime Minister of Denmark: “Meeting Global Challenges: Strengthening the Transatlantic Partnership”

The Chamber had the pleasure of hosting Anders Fogh Rasmussen, Prime Minister of Denmark, on February 28^th. PM Rasmussen discussed the importance of the transatlantic relationship and how the TEC can and should be used to further develop trade by breaking down technical barriers. He added his long-term vision was to see a barrier free, seamlessly integrated transatlantic marketplace. Energy, climate and security issues were also covered.

Antitrust/Competition

EU hits Microsoft with record fine

The European Commission fined Microsoft a record $1.35 billion for failing to comply with its antitrust ruling dating back to 2004. The ruling comes in spite of Microsoft announcing that it would open its code to would allow other companies’ programs to share data more easily with some of Microsoft’s most important products. Neelie Kroes, EC antitrust commissioner, scoffed at Microsoft’s announcement. Earlier in the month, Kroes described how she hoped for greater convergence of competition rules and cooperation between international agents, even as she continues to blaze her own trail.

What antitrust issues arise with Microsoft buying Yahoo?
National Public Radio interviewed J. Gregory Sidak, founder of Criterion Economics, president of the International Institute for Competition Law and Economics and the founding U.S. editor of the Journal of Competition Law & Economics, on the antitrust issues raised by Microsoft's proposed acquisition of Yahoo.
Listen to NPR story

State-Owned Enterprises and Subsidies

China’s advantage

A series of reports explain why the recent share purchase of Rio Tinto by Chinalco, China’s state-owned aluminum group, represents an emerging pattern of China using its state-owned industries as an unfair advantage.

China Inc. – WSJ

Intellectual Property

Lilly loses trademark fight in UK courts

London’s High Court rejected Lilly’s appeal against a UK pharmacy that ships drugs from Turkey to internet pharmacies in Canada. The court decided that Lilly’s European trademark was not in danger since the drugs were not released by UK customs.

UK court rejects Lilly bid to stop drug shipments – Reuters

Investment

The U.S. Government Accountability Office (GAO) released a report researching how ten other countries balance foreign investment with national security concerns. The report describes the ten selected countries’ “laws and policies enacted to regulate foreign investment to protect their national security interests and implementation of those laws and policies.”

“Laws and Policies Regulating Foreign Investment in 10 Countries” - GAO

Regulatory Cooperation at Work

EU to allow U.S. poultry imports
The European Commission has confirmed that the ban on imports of U.S. poultry is set to be lifted this summer. The ban was based on the use of antimicrobial agents that have been proven not to be dangerous to consumers. The Transatlantic Economic Council (TEC) is scheduled to rule on the issue at their upcoming meeting in June.
Read trade article

Groundwork to improve global trade of biofuels
A government led task force formed by the governments of the U.S., EU and Brazil has completed analysis of current biofuels standards and how greater compatibility could support global commoditization.
View ANSI article and task force report

Arrangement for enhanced cross-border cooperation signed
The U.S. Commodity Futures Trading Commission (CFTC) and the China Securities Regulatory Commission (CSRC) signed an arrangement to enhance cross-border cooperation and collaboration.
Read CFTC press release

CALENDAR OF UPCOMING EVENTS

To find out more about calendar events call Ben Kester at 202-463-5802.

March 10^thMeeting of the Advisory Committee on Int’l Economic Policy

Washington, DC

View announcement

March 10-18^th Vietnam Standards Training Program with ANSI

Hanoi, Vietnam

View announcement

March 12^th IP, Competition, and Trade: IP as a Property Right

Morning Discussion Series on “Trade Liberalization and Competitive Markets”

The GRC Project will host Mr. Singham as he continues the discussion arising from his new book, A General Theory of Trade and Competition: Trade Liberalisation and Competitive Markets, which establishes a general theory of trade and competition and attempts to solve market access problems for firms using this new paradigm. Free registration and continental breakfast will begin at 8:40 a.m. The program will begin at 9:00 a.m. sharp and run until 10:00 a.m. Please RSVP by replying to [email protected].

March 13 The Declining Dollar and the Global Economy

U.S. Chamber of Commerce

View registration details

March 25^th Trade in Services: Pro-competitive Regulation

Morning Discussion Series on “Trade Liberalization and Competitive Markets”

March 26 2^nd Annual Capital Markets Summit

U.S. Chamber of Commerce

View registration details

March 27^th Competing with State Owned Companies

Morning Discussion Series on “Trade Liberalization and Competitive Markets”

The Global Regulatory Cooperation (GRC) Project issues a monthly report of recent and planned activities. This report reflects the work that the GRC Project has underway in partnership with other divisions across the U.S. Chamber of Commerce. If you have any questions about what is contained in this report or to be added/removed from this distribution list contact Ben Kester at [email protected] or call him at 202-463-5802.