The report will be updated as determined by events. Trends and Policy Implications

Developing countries have become an increasingly significant factor in U.S. trade over the last two or more decades, and this influence is reflected in the issues on the trade agenda of the 110 th Congress: the possible renewal of trade promotion authority (TPA) (or fast track trade authority); implementing legislation for FTAs; reauthorization of trade adjustment assistance (TAA) for workers and firms; review and possible re-authorization of GSP and other trade preference programs; oversight of the Doha Development Agenda (DDA) round negotiations in the WTO; and other issues. The growth of developing countries' foreign trade presents the United States with opportunities and challenges. The imports from many developing economies provide U.S. consumers with an ever widening range of choices of products at lower prices, raising real incomes and contributing to a higher U.S. standard of living. A number of the developing countries have also become robust markets for U.S. exports. At the same time, U.S. workers are competing with a growing pool of lower-wage labor from India, China, and other developing countries. Some U.S.-based firms are induced to use labor-saving technology, to move production offshore, or to shut down their operations completely. Even workers in the services sector, such as computer programmers, are feeling the pressures of competition from some developing countries. Trade with developing countries also raises a set of virtually unique issues regarding labor rights, environment protection, and intellectual property rights, among others, that have become fixtures on the U.S. trade agenda. At the same time, developing countries are challenging U.S. trade policies on trade remedies, high tariffs on wearing apparel and other import-sensitive products, pricing of medicines, and the temporary entry of foreign workers, among other issues. If current trade trends hold, developing countries can be expected to account for increasing shares of U.S. exports and imports and of world trade. As a result, these opportunities and challenges will likely continue, if not expand. The analysis of U.S. trade trends also exposes a significant divide among groups of developing countries. Some countries, such as those in East Asia, Mexico, and Chile, have made great strides, and are expanding their role in U.S. and world trade. Others including most of Africa, many countries in South Asia, and some in Latin America, lag behind or are losing shares of U.S. and world trade. These differences suggest that an effective U.S. trade policy needs to differentiate among the various groups of developing countries. These differences could play a role in how the United States proceeds on trade preferences, regional and bilateral trade agreements, and multilateral negotiations in the WTO.
Developing countries, a heterogeneous group of low- and middle-income countries, have become an increasingly significant factor in U.S. trade flows and trade policy over the last two or more decades. Their influence is reflected in the issues on the trade agenda of the 110th Congress: the possible renewal of fast track trade authority/Trade Promotion Authority; implementing legislation for free trade agreements; re-authorization of trade adjustment assistance (TAA) for workers and firms; review and possible re-authorization of Generalized System of Preferences and other trade preference programs; and oversight of the Doha Development Agenda (DDA) round negotiations in the WTO.
The growth of developing countries' economies and foreign trade presents the United States with opportunities and challenges. The imports from many developing economies provide U.S. consumers with an ever widening range of choices of products at lower prices, raising real incomes and contributing to a higher U.S. standard of living. A number of the developing countries have also become robust markets for U.S. exports because of rapid economic growth and trade liberalization.
At the same time, many U.S. workers are competing with an expanding pool of lower-wage labor from India, China, and other developing countries. Such competition induces U.S.-based firms to reduce costs by using labor-saving technology, moving production offshore, or shutting down, forcing workers to adjust. Even workers in the high-end services sector are feeling the pressures of competition from some developing countries.
Trade with developing countries also raises a set of virtually unique issues regarding labor rights, environment protection, intellectual property rights, among others, that have become fixtures on the U.S. trade agenda. At the same time, developing countries are challenging U.S. policies on trade remedies, high tariffs on wearing apparel and other import-sensitive products, pricing of medicines, and the temporary entry of foreign workers.
If current trade trends hold, developing countries can be expected to account for increasing shares of U.S. exports and imports and for world trade. As a result, these opportunities and challenges will likely continue, if not expand.
The analysis of U.S. trade trends also exposes a significant divide among groups of developing countries. Some countries, such as China, South Korea, Mexico and Chile, have made great strides and, are expanding their role in U.S. and world trade. Others including most of Africa, many in South Asia, and some in Latin America, lag behind or are losing shares of U.S. and world trade. These differences suggest that effective U.S. trade policy may need to differentiate among the various groups of developing countries. These differences could play a role in how the United States proceeds on trade preferences, regional and bilateral trade agreements, and multilateral negotiations in the WTO. This report will be updated as events warrant.