WHITE HOUSE FACT SHEET: 'U.S.-CHINA ECONOMIC RELATIONS'

FROM:  THE WHITE HOUSE 
November 12, 2014
FACT SHEET: U.S.-China Economic Relations

President Obama and President Xi recognize the importance of economic relations at the core of the U.S.-China bilateral relationship. The two Presidents commit to deepen bilateral economic ties. To this end, the United States and China commit to pursue policies that promote more open and market-driven bilateral and international trade and investment. This includes pursuing a high-standard and comprehensive bilateral investment treaty that embodies the principles of non-discrimination, fairness, openness, and transparency. The Presidents also commit to work together to address global economic challenges, to deepen the cooperation between the two sides under the framework of the G20, and improve and strengthen the rules-based international economic system.

The United States and China welcome the bilateral agreement reached in November 2014 on the expansion of the WTO Information Technology Agreement, and call for swift resumption and conclusion of plurilateral negotiations in Geneva.

The United States and China commit to continue to pursue Bilateral Investment Treaty (BIT) negotiations as a top priority in their economic relations, devoting all the resources necessary toward the achievement of a high-standard and comprehensive BIT that embodies the principles of non-discrimination, fairness, openness, and transparency. U.S. and Chinese leaders commit to actively work to advance the negotiations to ensure they are achieving these objectives. The two sides commit to periodically report to their respective leaders on the status of the negotiations to ensure that maximum and continual progress is being achieved, with a first report following the exchange of proposed “negative lists” early in 2015.

The United States and China reached consensus to intensify science-based agricultural innovation for food security. The United States and China commit to strengthen dialogue to enable the increased use of innovative technologies in agriculture.

As part of the reforms set out in the Third Plenum of the 18th CPC Central Committee, China continues to implement its market-oriented exchange rate reform, reduce foreign exchange intervention as conditions permit, increase exchange flexibility, and enhance the transparency of its economic and financial data.

In 2012, the United States and China, the world’s two largest economies and exporters, demonstrated their joint leadership in the global trading system by making a historic commitment to launch multilateral negotiation of new international export credit guidelines in the International Working Group on Export Credits (IWG). Through six meetings, and based on numerous strong contributions from developed and emerging market country IWG members, the IWG has made significant progress and is now at a critical juncture as it works to develop guidelines that, taking into account varying national interests and situations, are consistent with international best practices.

The United States and China commit to take all steps necessary to advance the IWG initiative, including by starting negotiation of horizontal guidelines as soon as possible. The United States and China further reaffirm their support for IWG guideline coverage that includes official export credit support provided by or on behalf of a government.

The United States and China intend to discuss as soon as possible new areas for cooperation to build African energy capacity and to expand dramatically power generation and access to electricity in sub-Saharan Africa consistent, with the vision of Africa’s leaders and people for the continent’s development.

U.S. CONCLUDES REVIEWING BILATERAL INVESTMENT TREATY

FROM:  U.S. STATE DEPARTMENT
United States Concludes Review of Model Bilateral Investment Treaty
Media Note Office of the Spokesperson Washington, DC
April 20, 2012
The following is the text of a joint statement issued by the U.S. Department of State and the Office of the United States Trade Representative.
Begin Text:

Today, the U.S. Department of State and the Office of the United States Trade Representative announced the conclusion of the Administration’s review of the United States’ model bilateral investment treaty (BIT) and the release of the revised 2012 model BIT.

International investment is a significant driver of America’s economic growth, job creation, and exports. The 2012 U.S. model BIT text will help achieve several important goals of the Obama Administration ensuring that U.S. companies benefit from a level playing field in foreign markets, providing effective mechanisms for enforcing the international obligations of our economic partners, and creating stronger labor and environmental protections.

The 2012 model BIT also supports our strategic international commitment to a robust economic agenda. It will play a critical role in ensuring that American firms can rely on strong legal protections when competing for the 95 percent of the world’s consumers who live outside the United States, as well as in promoting good governance, the rule of law, and transparency around the world.

Like the predecessor 2004 model BIT, the 2012 model BIT continues to provide strong investor protections and preserve the government’s ability to regulate in the public interest. The Administration made several important changes to the BIT text so as to enhance transparency and public participation; sharpen the disciplines that address preferential treatment to state-owned enterprises, including the distortions created by certain indigenous innovation policies; and strengthen protections relating to labor and the environment.

BACKGROUND
Since February 2009, when the Administration initiated a review of the United States’ (2004) model BIT to ensure that it was consistent with the public interest and the Administration’s overall economic agenda, the Administration has sought and received extensive input from Congress, companies, business associations, labor groups, environmental and other non-governmental organizations, and academics. While revisions to the model BIT do not require Congressional action, negotiated BITs require advice and consent of two thirds of the Senate.

A BIT is an international agreement that provides binding legal rules regarding one country’s treatment of investors from another country. The United States negotiates BITs on the basis of a high-standard “model” text that provides investors with improved market access; protection from discriminatory, expropriatory, or otherwise harmful government treatment; and a mechanism to pursue binding international arbitration for breaches of the treaty. High-standard BITs, such as those based on the U.S. model, improve investment climates, promote market-based economic reform, and strengthen the rule of law. The United States has more than 40 BITs in force with countries around the world, and the investment chapters of U.S. free trade agreements (FTAs) contain substantially similar rules and protections. USTR and the Department of State co-lead the U.S. BIT program.