USDA WORKING TO MANAGE SUGAR SURPLUS

FROM: U.S. DEPARTMENT OF AGRICULTURE
USDA Announces Additional Actions to Manage the Domestic Sugar Surplus

WASHINGTON, June 17, 2013 - The U.S. Department of Agriculture today announced actions to manage the domestic sugar surplus, as required by law, while operating the sugar program at the least cost to the government. Record-breaking yields of sugar crops and a global surplus have driven down U.S. sugar prices and USDA is required to act to stabilize the domestic market. Today’s actions are designed to manage the sugar program while minimizing federal sugar program expenditures.



First, USDA announced today its intention to purchase sugar from domestic sugarcane or sugar beet processors and subsequently conduct voluntary exchanges for credits under the Refined Sugar Re-export Program. Exchanging sugar for credits reduces imports into the U.S., and is designed to reduce the sugar surplus. It is a less costly option than loan forfeitures. Since not less than 2.5 tons of import credits will be exchanged per 1 ton of sugar, there will be a minimum net reduction of 1.5 tons of sugar in the U.S. market per ton of sugar exchanged, making this a less costly option than forfeitures. USDA anticipates this action could remove around 300,000 tons of sugar from the U.S. market and cost approximately $38 million, subject to sequester, which is one-third the expected cost of forfeitures. USDA will continue to monitor current market conditions and projections to determine if additional actions are necessary.


Second, USDA announced today that licensed refiners now have 270 days—rather than 90 days—to make required exports or sugar transfers under the Refined Sugar Re-export Program. This action increases the pool of available re-export credits, facilitating the exchange announced above. These temporary waivers make no permanent change to Re-export Program rules.


Today’s announcements build on previous actions USDA has taken to stabilize the domestic sugar market. At the start of FY 2013, USDA announced at minimum allowable levels both the domestic Sugar Marketing Allotments and the U.S. WTO raw sugar import tariff-rate quota. On May 1, 2013, USDA announced two waivers of provisions in the Refined Sugar Re-export Program, temporarily permitting licensed refiners to transfer program sugar from their license to another refiner’s license through Sept. 30, 2013, and temporarily increasing their license limit from 50,000 metric tons raw value of credits to 100,000 metric tons raw value of credits, through Dec. 31, 2014.


USDA will closely monitor stocks, consumption, imports and all sugar market and program variables. USDA will also, on an ongoing basis, evaluate the need for use of other tools authorized in the 2008 farm bill, including the Feedstock Flexibility Program.


For additional details on the Refined Sugar Re-export Program changes announced today, please check the Federal Register notice here: Notice of Sugar Purchase and Exchange for Re-export Program Credits; and Notice of Re-export Program Time Period Extension. USDA’s Commodity Credit Corporation (CCC), managed by the Farm Service Agency, will invoke the Cost Reduction Options under the 1985 farm bill to purchase sugar. This CCC sugar will be offered to licensees who have credits under the Refined Sugar Re-export Program.

EXTENDING PERMANENT NORMAL TRADE RELATIONS TO RUSSIA

Photo:  Cargo Ship.  Credit:  Wikimedia.

FROM: U.S. DEPARTMENT OF STATE

The Economic and Strategic Case for Extending PNTR to Russia

Remarks
William J. Burns
Deputy Secretary
U.S. Chamber of Commerce
Washington, DC
September 6, 2012
Thank you. It’s an honor to be here with Under Secretary Sanchez at the U.S. Chamber of Commerce. It’s an honor to be introduced by Susan Schwab, for whose service as U.S. Trade Representative I have great admiration, and who did so much during her tenure to advance American economic interests in Russia. And it’s an honor to speak to you briefly today about an issue that matters to all of us -- the economic and strategic argument for extending Permanent Normal Trade Relations (PNTR) to Russia.

I have spent a good deal of my checkered diplomatic career helping Administrations of both parties navigate the complexities of the U.S.-Russia relationship. I’ve seen moments of great promise in that relationship, as well as periods of sharp and sometimes abiding differences. Through it all, I’ve tried my best to keep focused on what’s at stake for America’s own interests, as well as for Russia’s long-term evolution. That sense of focus is not always easy to sustain amidst the push and pull of events in both our countries, and in the world around us, but it’s essential to understanding the importance of extending PNTR to Russia today.

This afternoon’s meeting is well-timed. Tomorrow night, Secretary Clinton will touch down in Vladivostok for the 2012 Asia-Pacific Economic Cooperation Summit where liberalizing trade is expected to be high on the agenda. This is the first time Russia has hosted APEC. But more importantly, Russia is convening this gathering as the newest member of another group: the World Trade Organization (WTO).

Russia’s membership in the WTO is a major milestone, reflecting the strong, persistent support of the last three U.S. Administrations. However, until Congress acts to extend PNTR to Russia, our businesses will be deprived of an unprecedented opportunity to boost trade with one of the largest and fastest growing markets in the world.

A vote to extend PNTR is not a favor to Russia. It is a vote to create and sustain jobs in the United States. PNTR legislation has attracted bipartisan support in both chambers of Congress and from leaders of states across the country. They have lined up to make clear that PNTR is a vital opportunity to keep our companies competitive and help create new, high-quality American jobs. Continuing to deny PNTR for Russia at this stage only hurts American companies and workers, who are facing fierce economic competition—in more sectors and from more places than ever before.

At a time when our leadership in the world depends on shoring up our economy at home, the potential upside to opening the Russian market to U.S. goods and services is considerable. Russia today is the 7th largest economy in the world, but only our 20th largest trading partner. Yet, for many U.S. states, exports to Russia are growing faster than exports to the rest of the world; in April alone, U.S. goods exports to Russia reached $1 billion, a new record level. The U.S. Department of Commerce estimates that at least 5,000 American jobs are supported for every $1 billion of U.S. exports.

But until the WTO Agreement applies between the United States and Russia, America’s competitors will enjoy more liberal treatment for exports of goods and services and stronger commitments on protection of intellectual property rights--American companies will not. Until the WTO Agreement applies between us, Russia will be under no obligation to apply science based food safety standards to U.S. agricultural exports, leaving poultry and beef producers in Delaware, Arkansas, and Montana vulnerable. And until the WTO Agreement applies between us, we will not have the same recourse as our competitors to the WTO’s binding dispute resolution mechanism to ensure that Russia complies with its WTO commitments.

Failing to lift Jackson-Vanik and extend PNTR will not penalize Russia, nor will it provide an effective lever to change the Russian Government’s behavior. However, extending PNTR is a smart strategic investment that over the long term can help create a better, more predictable partner for the United States and contribute to Russian efforts to build a more transparent and accountable political and economic system.

Russia today is very much at a crossroads. As demonstrations across Russia over the last nine months have reminded us, a growing number of Russians both in and out of government want to see their country develop into a modern state with a diverse and competitive economy. But those determined Russians, many from the emerging middle class, are not only driven by a thirst for economic prosperity, but for a voice in how decisions are made in their society—for the predictability and accountability that come with rule of law.

While we do not expect change to occur overnight, this is a trend-line that is increasing in pace--and one we should support. Extending PNTR and thereby increasing U.S. trade with Russia can strengthen the hand of Russians who want an outward-looking society and an economy that depends more on the innovativeness and resourcefulness of its people, rather than on resources pulled out of the ground. It can also provide positive reinforcement to those working to create a level playing field, with transparent, predictable rules to serve as a hedge against corruption and further Russia’s political modernization. These are not just my own views. They are the arguments of some of the Kremlin’s harshest critics who have called on the United States to terminate Jackson-Vanik. That does not diminish their deep concerns about human rights and the Magnitskiy case–concerns which we strongly share.

Neither WTO membership nor extending PNTR to Russia can instantly create the kind of change the Russian people are seeking. PNTR should be one part of a stronger and fuller rule of law framework that we pursue with Russia, combined with the investment protections that would come with a new Bilateral Investment Treaty and implementation of the OECD Anti-Bribery Convention, which Russia joined earlier this year. These steps will not transform Russia’s economy overnight. But they will help integrate Russia into the global economy and send strong signals to investors about Russia’s commitment to strengthening rule of law.

As I said earlier, I’ve learned in many years of helping to navigate U.S.-Russian relations that we have to be realistic about the challenges which lie ahead.

We have serious and enduring differences with Russia that PNTR will not change. We continue to disagree fundamentally about Georgia, whose sovereignty, territorial integrity, and independence we firmly support. We also disagree fundamentally about Syria, where no stable outcome is possible as long as Bashar al-Asad remains in power, shedding the blood of his own people and risking a spillover of sectarian violence in a region that already has more than its share of troubles. Russia must make a choice here in determining where its interests lie. In the meantime—with Russia’s help or without it—we will continue to work with others in the international community to seek an end to the violence and to develop concrete steps to support a real political transition that advances the processes of reform, reconciliation, and reconstruction.

We also have profound differences with Russia over human rights. We want to see Russia emerge as both a global power and a vibrant democracy with strong rule of law. And we are seeing a new generation of Russians asking important questions of their own leaders. Without an active and independent media, how will Russia succeed in rooting out corruption and its debilitating effects on the economy? How will Russia build a modern political system responsive to modern challenges unless its citizens and activists can freely express dissenting views, without fear of political prosecution? How can Russia strengthen accountability in governance when whistleblowers like Sergey Magnitsky are arrested or killed for pointing out fraud and abuse? What will Russia do to develop a strong, capable civil society when NGOs receiving foreign funds are stigmatized with misleading labels?

While we cannot and should not impose American solutions, we can and do support those Russians who are seeking answers to these tough questions about their nation’s future. We are already taking concrete steps, using existing restrictions on human rights abusers, to ensure that no one implicated in the death of Sergey Magnitsky can travel to the U.S. We will also continue to support programs that bolster Russia’s civil society and strengthen the hand of those seeking a freer and more open and democratic future for Russia.

By now it should be clear, this is not a simple or easy relationship. Given the complexities and hard work involved, it may be tempting to downplay Russia’s importance. We do not have that luxury. Russia is a permanent member of the UN Security Council and one of the world’s largest nuclear powers, and it will remain profoundly in America’s interest to work with Russia where our interests overlap. Already over the last three years we have shown that we can achieve significant results, including on reductions of strategic nuclear weapons and on Afghanistan, where Russia has proven itself a valued partner in ensuring the safe transit of our personnel and equipment to the region. With PNTR, we hope to add expanded trade to this list.

We are encouraged that committees in the Senate and the House have passed PNTR legislation with broad bipartisan support. We also understand that it is likely that a PNTR bill will be considered by both chambers of Congress along with legislation addressing the tragic case of Sergey Magnitskiy. We continue to believe that the case for extending PNTR to Russia stands on its own merits. And, in close consultation with Congress, we will continue to seek out the most effective avenues to address the Magnitskiy case and human rights more broadly.

The economic and strategic stakes are clear. And so is the choice before Congress. Either give Americans the chance to compete on a level playing field in an important market—or we can ensure that the opportunities we worked so hard to create are seized not by Americans, but by workers and businesses beyond our shores. We urge Congress to take action as soon as possible.

Thank you again for the opportunity to meet with you today. Thank you for all your efforts on this important issue. And thank you for everything that the U.S. Chamber does to help ensure that Americans understand the growing connection between economic renewal at home and opening up new markets and new possibilities overseas. I look forward very much to continuing to work with you in that enormously important mission. Thank you.

U.S.-NAMIBIA RELATIONS

Map Credit:  U.S. State Department 
FROM:  US. STATE DEPARTMENT
U.S. Relations With Namibia
Bureau of African Affairs
Fact Sheet
June 21, 2012
U.S.-NAMIBIA RELATIONS
U.S.-Namibian relations are friendly. The United States participated in the diplomatic efforts to bring about Namibia's 1990 independence from South Africa and has since provided assistance to improve the well being of the Namibian people. The bilateral relationship is characterized by a shared commitment to democratic principles, including the rule of law and respect for human rights, and has been strengthened through programs to alleviate poverty and promote greater trade ties. The United States and Namibia are partners in the effort to improve health services, strengthen education, and expand trade and development opportunities.

U.S. Assistance to Namibia
Namibia is a focus country under the President's Emergency Plan for AIDS Relief (PEPFAR), and the United States and Namibia have signed a PEPFAR Partnership Framework. A strategy to implement the Global Health Initiative was also recently completed. USAID and the Center for Disease Control and Prevention (CDC) are the primary implementers of these programs. A five-year Millennium Challenge Account (MCA) Compact to reduce poverty and accelerate economic growth entered into force in September 2009. It aims to reduce poverty through economic growth and funds development projects in the sectors of education, tourism, and agriculture. On average, there are 100-120 Peace Corps volunteers present in Namibia. The Department of Defense has provided professional development training to the Namibian Defence Force.

Bilateral Economic Relations
Namibia seeks to diversify its trading relationships which, for historical reasons, were tied to South African goods and services. The country is eligible for preferential trade benefits under the African Growth and Opportunity Act (AGOA). Namibia belongs to the Southern African Customs Union, which has signed a Trade, Investment, and Development Cooperative Agreement (TIDCA) with the United States. The TIDCA establishes a forum for consultative discussions, cooperative work, and possible agreements on a wide range of trade issues, with a special focus on customs and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, and trade and investment promotion.

Namibia's Membership in International Organizations
Namibia’s foreign policy is heavily influenced by the positions taken by the Southern Africa Development Community (SADC), the African Union, and the Non-Aligned Movement, of which it is a member. Namibia and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organization.

Bilateral Representation
The U.S. Ambassador to Namibia is Wanda Nesbit

U.S.-GUINEA RELATIONS

Map Credit:  U.S. Department Of State/CIA 
FROM:  U.S. DEPARTMENT OF STATE
U.S. Relations With Guinea
Bureau of African Affairs
Fact Sheet
June 5, 2012
The United States maintained close relations with Guinea prior to the country's 2008 military coup d’etat, which the U.S. condemned. Following Guinea's presidential elections in 2010, the United States reestablished strong diplomatic relations with the government. U.S. policy seeks to encourage Guinea's democratic reforms, its positive contribution to regional stability, and sustainable economic and social development.
The United States has called on the Government of Guinea to establish an electoral timeline for free, fair, and timely legislative elections, which have been repeatedly delayed. Dialogue between Guinea's Government and political party leadership is essential, and the U.S. has strongly encouraged all political players to reconcile their differences.

U.S. Assistance to Guinea
The U.S. Agency for International Development (USAID) mission in Guinea has a core program that supports democratic transition and election processes, good governance at the local level, and improved service delivery by government institutions through key interventions at the national level. USAID also has significant programming intended to improve health outcomes through improved standards of care and community engagement. Regional programming supports preservation of World Heritage forest sites and critical biodiversity hotspots in Guinea.

Peace Corps volunteers work in four project areas: secondary education, environment/agro-forestry, public health and HIV/AIDS prevention, and small enterprise development.

Bilateral Economic Relations
In late 2011, the U.S. Government reinstated Guinea's African Growth and Opportunity Act (AGOA) benefits, which had been lost in early 2010. The reinstatement followed a review by the U.S. Government to examine whether the country had made "continual progress" in meeting AGOA's eligibility criteria. Those criteria include establishment of a market-based economy, rule of law, economic policies to reduce poverty, protection of internationally recognized worker rights, and efforts to combat corruption; political progress was a key factor. Restoring AGOA eligibility provided opportunities to increase mutually beneficial trade and investment between Guinea and the United States.
The United States and Guinea have signed an investment guarantee agreement offering political risk insurance to U.S. investors through the Overseas Private Investment Corporation.

Guinea's Membership in International Organizations
Guinea has been active in efforts toward regional integration and cooperation. Guinea and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organization.

U.S.-BELIZE RELATIONS

Map Credit:  U.S. State Department/CIA
FROM:  U.S. DEPARTMENT OF STATE
U.S. Relations With Belize
Bureau of Western Hemisphere Affairs
Fact Sheet
June 20, 2012
The United States and Belize traditionally have had close and cordial relations. The United States is home to the largest Belizean community outside Belize, estimated to be over 100,000. Belize's economic growth and accompanying democratic political stability are important U.S. objectives. The United States and Belize are working as partners to address the issues of citizen security and transnational crime. The two countries have mutual legal assistance treaties with each other covering stolen vehicles and extraditions. Both governments seek to control the flow of illegal migrants to the United States through Belize.

U.S. Assistance to Belize
The United States works closely with the Government of Belize to fight illicit narcotics trafficking, and Belize benefits from the Central America Regional Security Initiative (CARSI). Through CARSI, the U.S. Government seeks to strengthen citizen safety and improve the government’s capacity to confront and disrupt criminal organizations. The Belize Defense Force receives military assistance from the United States. The U.S. military's assistance program in Belize has included the construction and renovation of several schools and youth hostels, medical assistance programs, and drug reduction programs. U.S. military assistance was also critical in establishing Belize’s coast guard. Belize benefits from U.S. Agency for International Development regional programs, and there is a Peace Corps program in the country. Belize has signed a 5-year Central American regional framework agreement with the U.S. President's Emergency Plan for AIDS Relief.

Bilateral Economic Relations
The United States is Belize's principal trading partner and major source of investment funds. In 2010, the United States provided 47.9% of Belizean merchandise imports and accounted for 49.1% of Belize's merchandise exports. Some 185 U.S. companies have operations in Belize. Tourism attracts the most foreign direct investment, although U.S. investment also is found in the telecommunications, petroleum, and agricultural sectors. A Country Commercial Guide for Belize is available from the U.S. Embassy's Economic/Commercial section.

Belize's Membership in International Organizations
Belize became a member of the United Nations following its 1981 independence from the United Kingdom. Belize and the United States belong to a number of the same international organizations, including the UN, Organization of American States, International Monetary Fund, World Bank, and World Trade Organization.

U.S.-BARBADOS RELATIONS

Map Credit:  U.S. State Department/CIA
FROM:  U.S. DEPARTMENT OF STATE 
U.S. Relations With Barbados
Bureau of Western Hemisphere Affairs
Fact Sheet
June 4, 2012

The United States and Barbados have had friendly bilateral relations since Barbados' independence from the United Kingdom in 1966. Barbados and U.S. authorities cooperate closely in the fight against narcotics trafficking and other forms of transnational crime. The two countries have signed a mutual legal assistance treaty; an updated extradition treaty covering all common offenses, including conspiracy and organized crime; and a maritime law enforcement agreement.

U.S. Assistance to Barbados
The United States has supported the government's efforts to expand the country's economic base and to provide a higher standard of living for its citizens. U.S. assistance is channeled primarily through multilateral agencies such as the Inter-American Development Bank and the World Bank, as well as the U.S. Agency for International Development (USAID). USAID's Eastern Caribbean program, which includes Barbados, has focused on promoting economic growth through an improved business and investment climate, helping governments and the private sector compete in the global marketplace, combating HIV/AIDS, and protecting fragile ecosystems. Barbados receives counternarcotics and youth development assistance from the United States under the regional Caribbean Basin Security Initiative (CBSI) and is eligible to benefit from the U.S. military's exercise-related and humanitarian assistance construction program.

Bilateral Economic Relations
Barbados has an open economy with a marked dependence on imports, 40% of which come from the United States. Barbados is a beneficiary of the U.S. Caribbean Basin Initiative, which aims to facilitate the economic development and export diversification of the Caribbean Basin economies by providing countries with duty-free access to the U.S. market for most goods.

Barbados's Membership in International Organizations
As a small nation, the primary thrust of Barbados' diplomatic activity has been within international organizations. Barbados and the United States belong to a number of the same international organizations, including the United Nations, Organization of American States, Inter-American Development Bank, International Monetary Fund, World Bank, and World Trade Organization.

U.S.-CANADA RELATIONS

Map Credit:  U.S. State Department

FROM:  U.S. DEPARTMENT OF STATE 

U.S. Relations With Canada

Bureau of Western Hemisphere Affairs

Fact Sheet

June 29, 2012 

U.S.-CANADA RELATIONS

The United States and Canada share two borders and their bilateral relationship is among the closest and most extensive in the world. It is reflected in the high volume of bilateral trade--the equivalent of $1.6 billion a day in goods--as well as in people-to-people contact. About 300,000 people cross between the countries every day by all modes of transport. In fields ranging from security and law enforcement to environmental protection to free trade, the two countries work closely on multiple levels from federal to local.

U.S. defense arrangements with Canada are more extensive than with any other country. The Permanent Joint Board on Defense provides policy-level consultation on bilateral defense matters and the United States and Canada share North Atlantic Treaty Organization (NATO) mutual security commitments. U.S. and Canadian military forces cooperate on continental defense within the framework of the binational North American Aerospace Defense Command (NORAD).

The Beyond the Border initiative outlines a vision for perimeter security and economic competitiveness whereby the United States and Canada work in partnerships within, at, and away from our borders to achieve enhanced security and accelerate the legitimate flow of people, goods, and services between our two countries. The United States has several successful joint law enforcement programs with Canada such as the Integrated Border Enforcement Teams (IBET), Border Enforcement Security Taskforces (BEST), and the ShipRider Integrated Cross Border Maritime Law Enforcement program. Senior leadership engages in these efforts through fora such as the Cross Border Crime Forum (CBCF), which is chaired by the U.S. Attorney General and the Secretary of Homeland Security with their Canadian counterparts. As part of the Beyond the Border Action Plan, U.S. and Canadian officials are enhancing cross-border law enforcement radio interoperability and building on the successes of programs such as IBET, BEST, and ShipRider to develop the next generation of integrated cross-border law enforcement.

U.S. Customs and Border Protection (CBP) conducts preclearance operations at eight Canadian airports, allowing air travelers to arrive at domestic terminals in the United States by screening and making admissibility decisions about U.S.-bound travelers and their accompanying goods or baggage prior to departure. The United States and Canada intend to enhance preclearance operations and expand them to also cover land, rail, and ferry/cruise travel as part of the Beyond the Border Action Plan.

The United States and Canada work together to resolve and manage transboundary environmental and water issues. A principal instrument of this cooperation is the International Joint Commission established under the 1909 Boundary Waters Treaty. Under the Columbia River Treaty, Canada and the United States jointly regulate and manage the Columbia River as it flows from British Columbia into the United States. The two countries cooperate on a range of bilateral fisheries issues and international high seas governance initiatives, and are both founding members of the Arctic Council.

The bilateral Clean Energy Dialogue is charged with expanding clean energy research and development; developing and deploying clean energy technology; and building a more efficient electricity grid based on clean and renewable energy in order to reduce greenhouse gases and combat climate change in both countries. Canada is an ally of the United States in international climate change negotiations. Canada participates in the U.S.-led Major Economies Forum on Energy and Climate; the Asia Pacific Partnership on Clean Development and Climate, which aims to accelerate the development and deployment of clean energy technologies in major industrial sectors; and the International Carbon Sequestration Leadership Forum, which researches effective ways to capture and store carbon dioxide.

U.S. Assistance to Canada

The United States provides no foreign assistance to Canada.

Bilateral Economic Relations

The United States and Canada share the world's largest and most comprehensive trading relationship, which supports millions of jobs in each country. Canada is the single largest foreign supplier of energy to the United States. Recognition of the commercial viability of Canada's oil sands has made it the world's third largest holder of oil reserves after Saudi Arabia and Venezuela and is the only non-OPEC member in the top five. Canada and the United States operate an integrated electricity grid that meets jointly developed reliability standards, and they provide all of each other's electricity imports. Canadian uranium helps fuel U.S. nuclear power plants.

The North American Free Trade Agreement (NAFTA) among the United States, Canada, and Mexico aims to reduce trade barriers and establish agreed upon trade rules. It has resolved long-standing bilateral irritants and liberalized rules in several areas, including agriculture, services, energy, financial services, investment, and government procurement. The Regulatory Cooperation Council seeks to further stimulate trade by increasing regulatory transparency and cooperation between the United States and Canada and eliminating unnecessary regulatory differences and duplicative actions that hinder cross-border trade and investment.

Canada and the United States have one of the world's largest investment relationships. The United States is Canada's largest foreign investor, and Canada is the fifth-largest foreign investor in the United States. U.S. investment is primarily in Canada's mining and smelting industries, petroleum, chemicals, the manufacture of machinery and transportation equipment, and finance. Canadian investment in the United States is concentrated in finance and insurance, manufacturing, banking, information and retail trade, and other services.

Bilateral trade disputes are managed through bilateral consultative forums or referral to NAFTA or World Trade Organization (WTO) dispute resolution procedures. Canada has challenged U.S. trade remedy law in NAFTA and WTO dispute settlement mechanisms. The two countries negotiated the application to Canadian goods of "Buy American" provisions for state and local procurement under the American Recovery and Reinvestment Act. The United States has encouraged Canada to strengthen its intellectual property laws and enforcement. Canada passed an important copyright law on June 28, 2012.

Canada's Membership in International Organizations

In addition to their close bilateral ties, Canada and the United States cooperate in multilateral fora, including international efforts to combat terrorist financing and money laundering. The two countries belong to a number of the same international organizations, including the United Nations, NATO, WTO, G8, G20, Organization for Security and Cooperation in Europe, Organization for Economic Cooperation and Development, Organization of American States, and Asia-Pacific Economic Cooperation forum. Canada accepted an invitation to join the Trans-Pacific Partnership regional trade agreement being negotiated among the United States and other countries.

U.S.-UNITED ARAB EMIRATES RELATIONS

Map Credit:  U.S. State Department.
FROM:  U.S. STATE DEPARTMENT
U.S. Relations With United Arab Emirates
Bureau of Near Eastern Affairs
Fact Sheet
June 29, 2012
U.S.-UNITED ARAB EMIRATES RELATIONS
The United States has had friendly relations with the United Arab Emirates (U.A.E.) since 1971, following its formation and independence from the United Kingdom. The two countries established formal diplomatic relations in 1972. The U.A.E. plays an influential role in the Middle East, and is a key partner for the United States. The United States and the U.A.E. enjoy strong bilateral cooperation on a full range of issues including defense, non-proliferation, trade, law enforcement, energy policy, and cultural exchange. The two countries work together to promote peace and security, support economic growth, and improve educational opportunities in the region and around the world. U.A.E. ports host more U.S. Navy ships than any port outside the United States.

U.S. Assistance to the United Arab Emirates
The United States provides no foreign assistance to the U.A.E.

Bilateral Economic Relations
The prosperity of the U.A.E. is based in large part on the country's vast oil and gas reserves, and it is one of the United States’ single largest export markets in the Middle East and North Africa region. More than 750 U.S. firms operate in the country. Many U.S. companies, drawn by strong logistics and transport industries, use the U.A.E. as a regional headquarters from which to conduct business throughout the Middle East, North Africa, and parts of Asia. The U.S. and U.A.E. have entered into a Trade and Investment Framework Agreement, establishing a formal dialogue to promote increased trade and investment between the two countries.

The United Arab Emirates' Membership in International Organizations
The U.A.E. and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organization.

U.S.-CUBA RELATIONS

Map Credit:  Wikimedia.
FROM:  U.S. STATE DEPARTMENT
U.S. Relations With Cuba
Bureau of Western Hemisphere Affairs
Fact Sheet
June 21, 2012
PROFILE
Cuba's authoritarian regime assumed power by force in 1959 and has severely restricted fundamental freedoms, repressed political opponents, and violated human rights. The United States imposed an embargo on Cuba in 1960 and broke diplomatic relations in 1961, following the Cuban Government's expropriation of U.S. properties and its move toward adoption of a one-party communist system.

U.S. policy toward Cuba is focused on encouraging democratic and economic reforms and increased respect for human rights on the part of the Cuban Government. The U.S. Government has taken steps to reach out to the Cuban people in support of their desire to freely determine their country’s future. Although Cuba is subject to U.S. trade sanctions, the United States remains Cuba’s second largest supplier of food. The United States is committed to supporting safe, orderly, and legal migration from Cuba through the effective implementation of the 1994-95 U.S.-Cuba Migration Accords.

U.S. Assistance to Cuba
U.S. programs in Cuba include humanitarian support to political prisoners and their families, human rights and democracy promotion, and facilitating the free flow of information to, from and within the island.

Bilateral Economic Relations
Remittances play an important role in Cuba's state-controlled economy, with much of that funding coming from families in the United States. In 2009, the United States announced the lifting of restrictions on family travel and remittances to Cuba, expanded the list of items eligible for humanitarian export to Cuba, and announced new regulations for U.S. telecommunications companies to expand the flow of information to Cuba. In 2011, the United States announced regulatory changes that increase purposeful travel including religious, cultural, educational, and people-to-people travel; expand the individuals and groups eligible to send and receive remittances; and allow all U.S. international airports to apply to provide charter services to Cuba (previously only three airports were authorized).

Travel to Cuba is restricted by U.S. regulations to licensed travelers engaged in a set of specified activities. All U.S. travel to Cuba must be licensed by the Department of Treasury's Office of Foreign Assets Control (OFAC), and must fall into one of 12 categories. Further information on the licensing process can be obtained from OFAC or at its website. Those contemplating a visit to Cuba should consult the consular information page about the country.

All exports to Cuba must be licensed by the Commerce Department's Bureau of Industry and Security (BIS). Further information on exports to Cuba can be found at the BIS website.

Cuba's Membership in International Organizations
Cuba has an activist foreign policy and aims to find new sources of trade, aid, foreign investment, and political support, as well as to promote opposition to U.S. policy toward Cuba, in particular U.S. trade sanctions. Cuba and the United States belong to a number of the same international organizations, including the United Nations and the World Trade Organization. Cuba was readmitted to the Organization of American States in 2009 after having been expelled in 1962, but the country has refused to rejoin.

Geography
Area: 110,860 sq. km. (44,200 sq. mi.); slightly smaller than Pennsylvania.
Cities: Capital--Havana (pop. 2 million). Other major cities--Santiago de Cuba, Camaguey, Santa Clara, Holguin, Guantanamo, Matanzas, Cienfuegos, Pinar del Rio.
Terrain: Flat or gently rolling plains, hills; mountains up to 2,000 meters (6,000 ft.) in the southeast.
Climate: Tropical, moderated by trade winds; hurricane season (August-November); dry season (November-April); rainy season (May-October).

People
Population (official 2010 statistics): 11.2 million; 76% urban, 24% rural.
Ethnic groups (official 2002 Cuba census): 65% white, 25% mixed, 10% black.
Language: Spanish. Literacy (25 years and older; Cuban Government sources)--99.8%.
Work force (5.07 million): Services (including education, health and social services)--42%; agriculture--19%; commerce and tourism--12%; industry--11%; transport, storage, and communications--6%; construction--5%; mining, electricity, gas and water--2%.

Government
Type: Totalitarian communist state; current government assumed power by force on January 1, 1959.
Independence: May 20, 1902.
Political party: Cuban Communist Party (PCC); only one party allowed.
Administrative subdivisions: 16 provinces, including the city of Havana, and one special municipality (Isle of Youth).

Economy
GDP (official 2010 statistics, based on constant 1997 prices): $51.01 billion.
Real annual growth rate: 3.2% (2001); 1.4% (2002); 3.8% (2003); 5.8% (2004); 11.2% (2005); 12.1% (2006); 7.3% (2007); 4.1% (2008); 1.4% (2009); 2.1% (2010).
GDP per capita income (2010 est., based on constant 1997 prices): $4,545.
Average monthly salary: $20.

Natural resources: Nickel, cobalt, iron ore, copper, manganese, salt, timber, oil, natural gas.
Agriculture: Products--sugar, citrus and tropical fruits, tobacco, coffee, rice, beans, meat, vegetables.
Industry: Types--sugar and food processing, oil refining, cement, electric power, light consumer and industrial products, pharmaceutical and biotech products.

Trade: Exports (2009)--$2.88 billion f.o.b.: nickel/cobalt, oil and oil derivatives, pharmaceutical and biotech products, sugar and its byproducts, tobacco, seafood, citrus, tropical fruits, coffee. Major export markets (2009)--Venezuela $533 million (19%); China $517 million (18%); Canada $434 million (15%); Netherlands $237 million (8%); Spain $155 million (5%); Russia $88 million (3%); Brazil $69 million (2%); Netherlands Antilles $59 million (2%); France $45 million (2%); others $742 million (26%). Imports (2009)--$8.91 billion f.o.b.: petroleum, food, machinery, chemicals.Major import suppliers (2009)--Venezuela $2.6 billion (29%); China $1.17 billion (13%); Spain $753 billion (8%); United States $675 million (8%); Brazil $509 million (6%); Italy $324 million (4%); Mexico $303 million (3%); Canada $292 million (3%); Vietnam $276 million (3%); Germany $275 million (3%); others $1.7 billion (19%).
Cuba has two currencies in circulation: the peso (CUP), and the convertible peso (CUC), both of which are fixed by the government. The CUC is fixed at 1:1 with the U.S. dollar, and 24:1 with the Cuban peso (CUP). State enterprises, however, must exchange CUP and CUC at a 1:1 ratio, an artificial rate that hinders domestic fiscal accounting. The Cuban Government levies a penalty of 10% on CUC-U.S. dollar transactions.

Official statistics are available from the Cuban Office of National Statistics. For alternative statistics, see the Economist Intelligence Unit.

PEOPLE AND RELIGION
Cuba is a multiracial society with a population of mainly Spanish and African origins. Cuba was officially an atheist state from 1959 until a constitutional change in 1992 abolished atheism as the state creed and provided for the separation of church and state. At that time, the Communist Party also lifted its ban on members with religious beliefs. The largest organized religion is the Roman Catholic Church, but evangelical protestant denominations continue to grow rapidly. Baptists, Methodists, Jehovah’s Witnesses, and Pentecostal churches are some of the largest Protestant denominations. Afro-Cuban religions, a blend of native African religions and Roman Catholicism, are widely practiced. There are also small groups of Jews and Muslims. See the Department's report on international religious freedom for further information regarding religion in Cuba.

HISTORY
Spanish settlers established the raising of cattle, sugarcane, and tobacco as Cuba's primary economic pursuits. As the native Indian population died out, African slaves were imported to work the ranches and plantations. Slavery was abolished in 1886.

Cuba was the last major Spanish colony to gain independence, following a lengthy struggle begun in 1868. Jose Marti, Cuba's national hero, helped initiate the final push for independence in 1895. In 1898, the United States entered the conflict after the USS Maine sank in Havana Harbor on February 15 due to an explosion of undetermined origin. In December of that year, Spain relinquished control of Cuba to the United States with the Treaty of Paris. On May 20, 1902, the United States granted Cuba its independence but retained the right to intervene to preserve Cuban independence and stability in accordance with the Platt Amendment. In 1934, the Platt Amendment was repealed. The United States and Cuba concluded a Treaty of Relations in 1934 which, among other things, continued the 1903 agreements that leased the Guantanamo Bay naval base to the United States.

Independent Cuba was often ruled by authoritarian political and military figures who either obtained or remained in power by force. Fulgencio Batista, an army sergeant, organized a non-commissioned officer revolt in September 1933 and wielded significant power behind the scenes until he was elected president in 1940. Batista was voted out of office in 1944 and did not run in 1948. Both those elections were won by civilian political figures with the support of party organizations. Running for president again in 1952, Batista seized power in a bloodless coup 3 months before the election was to take place, suspended the balloting, and began ruling by decree. Many political figures and movements that wanted a return to the government according to the constitution of 1940 disputed Batista's undemocratic rule.

On July 26, 1953, Fidel Castro, who had been involved in increasingly violent political activity before Batista's coup, led a failed attack on the Moncada army barracks in Santiago de Cuba in which more than 100 died. After defending himself in a trial open to national and international media, he was convicted and jailed, and subsequently was freed in an act of clemency, before going into exile in Mexico. There he organized the "26th of July Movement" with the goal of overthrowing Batista, and the group sailed to Cuba on board the yacht Granma, landing in the eastern part of the island in December 1956.

Batista's dictatorial rule fueled increasing popular discontent and the rise of many active urban and rural resistance groups, a fertile political environment for Castro's 26th of July Movement. Faced with a corrupt and ineffective military--itself dispirited by a U.S. Government embargo on weapons sales to Cuba--and public indignation and revulsion at his brutality toward opponents, Batista fled on January 1, 1959. Although he had promised a return to constitutional rule and democratic elections along with social reforms, Castro used his control of the military to consolidate his power by repressing all dissent from his decisions, marginalizing other resistance figures, and imprisoning or executing thousands of opponents. An estimated 3,200 people were executed by the Cuban Government between 1959 and 1962 alone. As the revolution became more radical, hundreds of thousands of Cubans fled the island.

Castro declared Cuba a socialist state on April 16, 1961. For the next 30 years, Castro pursued close relations with the Soviet Union and worked to advance the geopolitical goals of the Soviet Union, funding and fomenting violent subversive and insurrectional activities and participating in foreign interventions until the demise of the U.S.S.R. in 1991.

Relations between the United States and Cuba deteriorated rapidly as the Cuban Government expropriated U.S. properties and moved toward adoption of a one-party communist system. In response, the United States imposed an embargo on Cuba in October 1960, and, in response to Castro's provocations, broke diplomatic relations on January 3, 1961. Tensions between the two governments peaked during the October 1962 missile crisis.

GOVERNMENT AND POLITICAL CONDITIONS
Cuba is a totalitarian communist state headed by General Raul Castro and a cadre of party loyalists. Castro replaced his brother Fidel Castro as chief of state, president of Cuba, and commander-in-chief of the armed forces on February 24, 2008. The first Communist Party Congress (CPC) since 1997 was held in April 2011, where Raul Castro was officially named first secretary of the Communist Party. He announced that 80-year-old Jose Ramon Machado Ventura would remain second-in-charge and Vice President Ramiro Valdes would remain as number three. The CPC also marked Fidel Castro’s formal resignation from official responsibilities within the party, although he will likely remain an important symbolic figure. Also proposed at the congress were two 5-year term limits for top party and government positions, but the party will not take up the issues of succession and its role in government again until January 2012, when it will hold a smaller party conference. The Cuban Government seeks to control most aspects of Cuban life through the Communist Party and its affiliated mass organizations, the government bureaucracy, and the state security apparatus. The Ministry of Interior is the principal organ of state security and control.

According to the Soviet-inspired Cuban constitution of 1976, the National Assembly and its Council of State have supreme authority. Since the National Assembly meets only twice a year for a few days each time, the 31-member Council of State wields power. A Council of Ministers, through its nine-member executive committee, handles the administration of the economy, which is state-controlled except for a small private market sector. Raul Castro is President of the Council of State and Council of Ministers, and Jose Ramon Machado Ventura serves as First Vice President of both bodies. In total, there are five Vice Presidents in the Council of State and seven in the Council of Ministers.

Although the constitution theoretically provides for independent courts, it explicitly subordinates them to the National Assembly and to the Council of State. The Supreme Court is the highest judicial body. Due process is routinely denied to Cuban citizens, particularly in cases involving political offenses. The constitution states that all legally recognized civil liberties can be denied to anyone who opposes the "decision of the Cuban people to build socialism."

The Communist Party is constitutionally recognized as Cuba's only legal political party. The party monopolizes all government positions, including the Council of State and judicial offices. Though not a formal requirement, party membership is a de facto prerequisite for high-level official positions and professional advancement in most areas. A small number of non-party members have been permitted by the controlling Communist authorities to serve in the National Assembly. The Communist Party through its front organizations approves candidates for all elected offices. Citizens do not have the right to change the government.

Human Rights
Cuba is a signatory to the Universal Declaration of Human Rights (UDHR) and sits on the UN Human Rights Council. In February 2008, Cuba signed the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social, and Cultural Rights, but has yet to ratify either document. In spite of this, Cuba places severe restrictions on many of the rights described in the UDHR and continues to engage in harassment, surveillance, arbitrary detention, and imprisonment of peaceful human rights activists and political opponents.

In 2010 and 2011, Cuba freed dozens of political prisoners, including those arrested during a crackdown in 2003 known as the “Black Spring.” Most of the releases were conditioned on the immediate departure of the prisoners for third countries, although a few have been allowed to remain in Cuba. Since the government does not allow international monitoring of its prisons and does not release information about the prison population, it is difficult to accurately count the number of political prisoners in Cuba. Estimates from human rights groups range from as low as 30 to more than 100. In addition, human rights groups have noted that while the number of political prisoners has decreased, the number of short-term detentions (typically aimed at disrupting planned civil society activities) increased significantly in 2010 and 2011.

The law subordinates freedom of speech, freedom of the press, and freedom of assembly to the aim of building a “socialist society.” Criticism of national leaders can lead to imprisonment. The government maintains complete control over all forms of mass media, including newspapers, radio and television. The Communist Party, enshrined in the constitution as “the superior leading force of society and of the state,” determines content and editorial tone, resulting in almost complete uniformity across all broadcasts and publications. Independent journalists face censorship as well as detention and harassment by state security. Similarly, the government limits access to the Internet to a small number of professionals and party faithful and employs monitoring and blocking technologies to further restrict freedom. Cuba estimates that 14% of its population has access to the Internet; international estimates are lower, making Cuba among the least-wired countries in the world.

Authorities have used surveillance, short-term detentions, and state-organized mobs to interfere with unauthorized meetings and public demonstrations. Civil society groups have reported dozens of cases in which state security and police prevented or broke up meetings using house arrests, short-term detentions, and checkpoints around planned meeting sites. The government also continues to regularly employ organized mobs to humiliate opponents and interfere with peaceful assemblies. Although the government characterizes counter-demonstrations as spontaneous, participants arrive in government buses and openly coordinate with state security officials.

The government also restricts freedom of movement, both domestically and internationally. Cubans must obtain permission to change their place of residence and can be forcibly returned to their home province if they are illegally resident. This law is most commonly employed in the capital, where thousands of people reside illegally and at least dozens are returned to the provinces on a weekly basis.

For international travel to all destinations, Cubans must receive an exit permit. The Cuban Government routinely denies exit permits to political opponents and human rights activists. In addition to political opponents, the government will not grant an exit visa to some types of professionals (e.g., doctors, nurses, etc.) until they have worked in Cuba for a certain number of years after completing their education. In 2011, President Castro announced that travel restrictions would be loosened in the near future, but that restrictions would remain in place to prevent educated professionals and others from leaving the country.

The Cuban Government routinely violates international labor standards. The law does not allow workers to form and join independent unions of their choice. All unions must be recognized and affiliated with the Central de Trabajadores de Cuba (CTC), or the Workers’ Central Union of Cuba, whose leaders are chosen by the Communist Party. The CTC's principal responsibility is to ensure that government production goals are met. It does not bargain collectively, promote worker rights, or protect the right to strike. The government harasses, detains, and has imprisoned leaders of unauthorized labor movements.

For additional information, see also the Department's Country Report on Human Rights Practices for Cuba.

NATIONAL SECURITY
With the loss of Soviet-era subsidies in the early 1990s, Cuba's armed forces have shrunk considerably, both in terms of numbers and assets. Combined active duty troop strength for all three services is estimated at 50,000 to 55,000 personnel (compared to some 235,000 on active duty 10 years ago) and much of Cuba's weaponry appears to be in storage. Cuba's air force, once considered among the best equipped in Latin America, no longer merits that distinction, though it still possesses advanced aircraft and weapons systems; the navy has become primarily a coastal defense force with no blue water capability. The Cuban army is still one of the region's more formidable, but it also is much reduced and no longer has the considerable resources necessary to project power abroad. Exchanges and visits with foreign military allies like Russia, China, and Venezuela have become common over the past few years.

The military plays a dominant role in the economy, particularly in tourism, civil aviation, foreign trade, and retail operations. Cuba’s National Civil Defense, responsible for preparing for and responding to natural disasters and oil spills, is also under the Ministry of Armed Forces. The country's two paramilitary organizations, the Territorial Militia Troops and the Youth Labor Army, have a reduced training capability. Cuba also adopted a "war of the people" strategy that highlights the defensive nature of its capabilities. In this respect, and despite the drain on the country’s resources, the government has continued to hold national military drills in preparation for hypothetical military aggression from the United States. The government continues to maintain a large state security apparatus under the Ministry of Interior to repress dissent within Cuba.

ECONOMY
GDP Growth
Real gross domestic product (GDP) grew by 2.1% in 2010, according to official statistics. However, Cuba uses a unique “social” method for calculating GDP which makes its figures impossible to compare with any other country in the world. The reported growth reflected a slight improvement on the 1.4% growth in 2009 and 1.9% growth the Cuban Government had forecast for 2010.

Economic Structure
The Cuban Government continues to adhere to socialist principles in organizing its state-controlled economy. Most of the means of production are owned and run by the government and, according to Cuban Government statistics, about 83% of the labor force is employed by the state. An additional 5% of the labor force is employed by cooperatives closely connected with the state. Only 12% of the labor force works in the private sector, including private farmers, artists, and 142,000 self-employed ("cuentapropistas"), representing less than 3% of the entire workforce. More than 60% of the workforce is employed in non-productive sectors.

U.S.-MEXICO RELATIONS

Map Credit:  Wikimedia.
FROM:  U.S. STATE DEPARTMENT
U.S. Relations With Mexico
Bureau of Western Hemisphere Affairs
Fact Sheet
June 25, 2012
U.S. relations with Mexico are important and complex. The two countries share a 2,000-mile border, and relations between the two have a direct impact on the lives and livelihoods of millions of Americans--whether the issue is trade and economic reform, homeland security, drug control, migration, or the environment. The U.S. and Mexico, along with Canada, are partners in the North American Free Trade Agreement (NAFTA) and enjoy a broad and expanding trade relationship. Through the North American Leaders’ Summits, the United States, Canada, and Mexico cooperate to improve North American competitiveness, ensure the safety of their citizens, and promote clean energy and a healthy environment. The three nations also cooperate on hemispheric and global challenges, such as managing transborder infectious diseases and seeking greater integration to respond to challenges of transnational organized crime.

U.S. relations with Mexico are important and complex. U.S. relations with Mexico have a direct impact on the lives and livelihoods of millions of Americans – whether the issue is trade and economic reform, homeland security drug control, migration, or the environment. The scope of U.S.-Mexican relations is broad and goes beyond diplomatic and official contacts. It entails extensive commercial, cultural, and educational ties, with over 1.25 billion dollars worth of two-way trade and roughly one million legal border crossings each day. In addition, a million American citizens live in Mexico and approximately 10 million Americans visit Mexico every year. More than 18,000 companies with U.S. investment have operations in Mexico, and U.S. companies have invested $145 billion in Mexico since 2000.

Cooperation between the United States and Mexico along the 2,000-mile common border includes state and local problem-solving mechanisms; transportation planning; and institutions to address resource, environment and health issues. Presidents Obama and Calderon created a high level Executive Steering Committee for 21st Century Border Management in 2010 to spur advancements in creating a modern, secure, and efficient border. The multi-agency U.S.-Mexico Binational Group on Bridges and Border Crossings meets twice yearly to improve the efficiency of existing crossings and coordinate planning for new ones. The ten U.S. and Mexican border states are active participants in these meetings. Chaired by U.S. and Mexican consuls, Border Liaison Mechanisms operate in "sister city" pairs and have proven to be an effective means of dealing with a variety of local issues including border infrastructure, accidental violation of sovereignty by law enforcement officials, charges of mistreatment of foreign nationals, and cooperation in public health matters.

The United States and Mexico have a long history of cooperation on environmental and natural resource issues, particularly in the border area, where there are serious environmental problems caused by rapid population growth, urbanization, and industrialization. Cooperative activities between the U.S. and Mexico take place under a number of arrangements such as the International Boundary and Water Commission; the La Paz Agreement, the U.S.-Mexico Border 2012/2020 Program; the North American Development Bank and the Border Environment Cooperation Commission; the North American Commission for Environmental Cooperation; the Border Health Commission; and a variety of other agreements that address border health, wildlife and migratory birds, national parks, forests, and marine and atmospheric resources. The International Boundary and Water Commission, United States and Mexico, is an international organization responsible for managing a wide variety of water resource and boundary preservation issues.

The two countries also have cooperated on telecommunications services in the border area for more than 50 years. There are 39 bilateral agreements that govern shared use of the radio spectrum. When the United States completed the transition to digital television in 2009, a high percentage of Mexican border cities did the same, well ahead of Mexico’s deadline to complete the transition by 2021. Recent border agreements also cover mobile broadband services, including smartphones, and similar devices. The High Level Consultative Commission on Telecommunications continues to serve as the primary bilateral arena for both governments to promote growth in the sector and to ensure compatible services in the border area. The United States and Mexico have also signed an agreement to improve cross-border public security communications in the border area.

U.S. Cooperation with Mexico
The Merida Initiative is an unprecedented partnership between the United States and Mexico to fight organized crime and associated violence while furthering respect for human rights and the rule of law. Since 2010, our Merida Initiative cooperation has been organized under four strategic pillars. The first pillar aims to disrupt the capacity of organized crime to operate by capturing criminal groups and their leaders and reducing their revenues through better investigations, successful prosecutions, and shipment interdictions. The initiative’s second pillar focuses on enhancing the capacity of Mexico’s government and institutions to sustain the rule of law. The Merida Initiative’s third pillar aims to improve border management to facilitate legitimate trade and movement of people while thwarting the flow of drugs, arms, and cash. Finally, the fourth pillar seeks to build strong and resilient communities.

U.S. cooperation with Mexico under the Merida Initiative directly supports programs to help Mexico train its police forces in modern investigative techniques, promote a culture of lawfulness, and implement key justice reforms. Merida Initiative assistance also supports Mexico's efforts to reform its judicial sector and professionalize its police forces reflect its commitment to promote the rule of law and build strong law enforcement institutions to counter the threat posed by organized crime. The U.S. Congress has appropriated $1.9 billion for the Merida Initiative since it began.

U.S. Agency for International Development (USAID) programs support Mexican efforts to address key challenges to improving citizen security and well-being, with program approaches specifically geared to the U.S.-Mexico relationship. Programs under the Merida Initiative develop and test models to mitigate the community-level impact of crime and violence, and support Mexico’s implementation of criminal justice constitutional reforms that protect citizens’ rights. Additional USAID programs support Mexico’s commitment to reducing greenhouse gas emissions and to enhancing economic competitiveness to improve citizens’ lives.

Bilateral Economic Relations
Mexico is the United States’ second-largest export market (after Canada) and third-largest trading partner (after Canada and China). Mexico's exports rely heavily on supplying the U.S. market, but the country has also sought to diversify its export destinations. Nearly 80 percent of Mexico’s exports in 2011 went to the United States. In 2011, Mexico was the second-largest supplier of oil to the United States. Top U.S. exports to Mexico include mechanical machinery, electronic equipment, motor vehicle parts, mineral fuels and oils, and plastics. Trade matters are generally settled through direct negotiations between the two countries or addressed via World Trade Organization or NAFTA formal dispute settlement procedures.

Mexican investment in the United States has grown by over 35 percent the past five years. It is the seventh fastest growing investor country in the United States.

Mexico is a major recipient of remittances, sent mostly from Mexicans in the United States. Remittances are a major source of foreign currency, totaling over $22.73 billion in 2011. Most remittances are used for immediate consumption -- food, housing, health care, education -- but some collective remittances, sent from Mexican migrants in the U.S. to their community of origin, are used for shared projects and infrastructure improvements under Mexico’s 3 for 1 program that matches contributions with federal, state and local funds.

Mexico is making progress in its intellectual property rights enforcement efforts, although piracy and counterfeiting rates remain high. Mexico appeared on the Watch List in the 2012 Special 301 report. The U.S. continues to work with the Mexican Government to implement its commitment to improving intellectual property protection.

Mexico's Membership in International Organizations
Mexico is a strong supporter of the United Nations (UN) and Organization of American States (OAS) systems, and hosted the G-20 Leaders’ Summit in June 2012. Mexico and the United States belong to a number of the same international organizations, including the UN, OAS, Asia-Pacific Economic Cooperation (APEC) forum, G-20, Organization for Economic Cooperation and Development (OECD), International Monetary Fund (IMF), World Bank (WB), and World Trade Organization (WTO). In January 2012, Mexico became a member of the Wassenaar Arrangement, a multilateral export control regime for conventional arms and dual-use goods.

U.S. SPOKESPERSON ON ARGENTINA'S NATIONALIZATION OF CONTROLLING INTEREST IN REPSOL-YPF

FROM:  U.S. STATE DEPARTMENT
Argentina: Proposal to Nationalize Controlling Interest in Repsol-YPF
Mark C. Toner
Deputy Spokesperson
Daily Press Briefing
Washington, DC
April 16, 2012
Taken Question Office of the Spokesperson Washington, DC
QUESTION: Has the United States filed a WTO complaint against Argentina for plans to nationalize Spanish/U.S.-owned oil company YPF?
ANSWER: We are aware that Argentine President Cristina Fernandez de Kirchner proposed a draft law to nationalize a controlling interest in oil energy company Repsol-YPF. We are following developments on this issue. We are not currently aware of any WTO complaints related to this issue.