U.S. Department of State

The President's National Security Strategy aims to "help make the world not just safer, but better." National security and global economic prosperity are inextricably linked. Americans have a vital interest in a strong international economy that advances prosperity, freedom, and economic opportunity worldwide. Economic growth creates new jobs and higher incomes for Americans and for citizens of other nations. The Department works closely with other agencies, businesses, and NGOs to build a strong and dynamic international economic system based on free trade with new opportunities for American business, workers, and farmers, and to ensure the economic security of the United States. The Department has a direct impact on U.S. economic security through its work to ensure the stability of the international financial system, disrupt terrorist financial networks, support front-line states grappling with difficult economic conditions, develop diversified and reliable sources of energy, and make international transportation of people and goods safe and secure.

The remarkable growth and prosperity of the developed economies have demonstrated the strength of a dynamic, open international trading system based on free trade and free markets, good governance, and the rule of law, a system which is a key element of sustainable development. Conversely, the lack of economic opportunity for many around the world is an underlying factor for a number of the grave challenges we face. Regional instability, international crime and illicit drugs, social and environmental destabilization, and humanitarian crises all feed on, and further marginalize, vulnerable populations. The Department's efforts to promote trade and development have a direct positive effect on these vulnerable populations while also strengthening the U.S. economy. As the world's largest importer and exporter, the U.S. has a significant impact: trade accounts for about one quarter of the U.S. economy and reached $2.6 trillion in FY 2003. Export growth produced about 25 percent of U.S. economic growth during the past decade. One of every five U.S. manufacturing workers depends on exports for a job. Imports make competitive, lower cost goods available to American consumers and quality supply components available to American industries. The United States is the largest importer from developing countries, importing goods worth over $600 billion in 2002, approximately ten times the value of the total of all official development assistance to developing countries from all donors. Continued growth and the economic opportunity gained from open trading systems, foreign investment, U.S. development assistance, and international cooperation on financial issues promotes political liberty abroad and our national security at home.

Means for Achieving FY 2005 Targets
Increase in average GCI.

• Devise coherent country, regional, and global development strategies, including the promotion of the Monterrey Consensus principles, to ensure bilateral and multilateral development assistance advances economic stability and integration in the global economy.
• Promote sustainable financial and economic policies in Argentina, Brazil, and other Latin American countries in cooperation with International Financial Institutions
• Implement G-8 Anti-Corruption plan and push for accelerated enforcement of OECD Anti-Bribery Convention
• Support economic integration, growth, and development initiatives in the Middle East, Africa, South Asia, South America, and the Caribbean such as the Andean Trade Pact Agreement, Caribbean Basin Initiative, Middle East Partnership Initiative, and African Growth and Opportunity Act.

Corporate Restructuring in Japan - The marketplace begins to dispose of a significant measure of non-performing assets.

• Encourage continued success of domestic turnaround industry along side foreign investment firms.
• Increase understanding and acceptance on the part of the Japanese government and public on the need for corporate restructuring for future economic growth.
• Monitor market response and success to disposal of non-performing assets.

EU barriers to ag-biotech field tests and commodities trade are reduced.

• Promote minimally disruptive biotechnology regulations, which are transparent, predictable, and WTO compliant, working through posts and international fora
• Target consumers and policy makers through speaker programs, workshops and visitor programs.

Post-WSSD activities in water and energy are fully ingrained in UNESCO program of work.

• Use goodwill and budget increase linked to U.S. re-entry to expand work of UNESCO science sector in helping countries implement WSSD agreed goals

With AID, S&T ag-biotech initiative launched with Asia.

• Devise country and regional strategies for APEC and ASEAN to encourage science-based, transparent biotech regulatory systems, including implementation of Codex risk assessment guidelines on a regional basis.
• Target consumers and policy makers through speaker programs, workshops, and visitor programs.

ITER begins construction.

• Conclude negotiation of institutional structure and funding mechanism.

Effective normative development policy debate leads to change at national levels.

• Promote at international fora - particularly the UN General Assembly and ECOSOC - the principles of the Monterrey Consensus, i.e., that economic growth, sustainable development, and poverty reduction require sound macroeconomic policy, democracy, good governance, open markets, and economic freedom.
• Shape UNCTAD economic policy discussions and publications to provide information that will help developing countries implement the Monterrey Consensus and participate in the Doha Development Round of trade negotiations.

Means for Achieving FY 2005 Targets
WTO Doha negotiations completed January 1, 2005. Two new BITS concluded.

• Ensure implementation of Uruguay Round Agreements, offering trade capacity building assistance to developing countries
• Negotiate new agreements in the WTO Doha Development Round
• Promote WTO institutional reforms to increase transparency, accountability, and coordination with other international organizations
• Negotiate agreements to create a Free Trade Area of the Americas (FTAA), a Central America Free Trade area (CAFTA), and Free Trade Area agreements with the Southern African Customs Union, Australia, and Morocco.
• Remove foreign tariff and non-tariff barriers, through bilateral and regional initiatives, and multilateral efforts such as implementation of the APEC trade and investment liberalization objectives contained in the Shanghai Accord
• Conclude new Bilateral Investment Treaties and negotiate high-standards investment chapters in Free Trade Agreements

Conclude two bilateral Open Skies agreements (or Multilateral accessions), as well as three non-Open Skies agreements.

• Conclude new Open Skies aviation agreements
• Liberalize existing aviation agreements with important countries where "Open Skies" accords are not possible; seek multilateral aviation accords based on "Open Skies" with interested partners
• Promote liberal aviation policies in ICAO and regional fora, i.e., APEC

Three more countries begin to commercialize ag-biotech.

• Engage countries with interest, need, and capacity for biotechnology at country and regional levels to develop science based, transparent regulatory systems.
• Provide speakers, workshops, and outreach to convey benefits of ag-biotech for policy makers, consumers, and local farmers.

Support provided for 185 companies; 80 advocacy success stories.

• Generate and respond to requests for USG commercial advocacy support, including with regard to foreign government procurement, and ensure sanctity of contracts.
• Organize and manage business outreach events to promote best business practices and enhance public diplomacy goals.
• Promote open and transparent foreign government procurement practices and technology-neutral standards.
• Ensure appropriate business input into ongoing negotiations for Free Trade Agreements and bilateral investment treaties, and aviation agreements.
• Facilitate U.S. foreign investment by working to resolve investment disputes between U.S. investors and foreign governments.
• Press signatory countries to enforce and implement the OECD Anti-Bribery Convention and promote rigorous peer monitoring.
• Increase protection of intellectual property rights through training, Special 301 process, and embassy intervention.
• Encourage business-to-business and business-to-government dialogue in official bilateral and multilateral fora.
• Increase awareness of e-government as a tool for reform, and of the quality of e-government goods and services provided by U.S. industry.
• Promote improved overseas investment climates, working in the ITU, OECD, and APEC.
• Develop and implement public diplomacy strategies to support our goals.

Prepare for WRC 2007.

• Develop support for emerging U.S. positions on international allocation of adequate radio spectrum at the ITU for current and future telecommunications services

U.S. proposals on convergence technologies for cable, telephony, and broadband adopted in the ITU.

• Work with U.S. telecom industry to develop and adopt U.S. proposals at the ITU.

Western Hemisphere countries adopt U.S. Wireless Local Network standards.

• Promote adoption of U.S. "3rd Generation" wireless and Digital television standards throughout hemisphere, both bilaterally and multilaterally in CITEL, an entity of the Organization of American States

CITEL endorses the U.S. DTV standard and key countries, including Brazil, adopt it.

• Promote adoption of U.S. "3rd Generation" wireless and Digital television standards throughout hemisphere, both bilaterally and multilaterally in CITEL, an entity of the Organization of American States

Continue bilateral consultations to improve coordination in WTO and FTAA and encourage continued market openings.

• Consultations and meetings with governments, demarches to pursue areas of promise for open markets of priority interest to U.S. firms.

OECD countries undertake discussions to expand common guidelines to include issues addressed by World Bank safeguard policies, such as impact on indigenous peoples, involuntary resettlements, etc.

• Work with like-minded OECD Member delegations to expand agenda of export credit agency (ECA) and environmental compliance to include integration of World Bank safeguards in the OECD's ECA-related discussions.
• Coordinate with NGOs and American exporters to exert pressure on OECD Member ECAs to adopt such safeguards policies.

Work Plans pursuant to framework environmental capacity building agreements will be agreed upon with Morocco, Bahrain and the five CAFTA countries of Central America plus the Dominican Republic

• Identify areas of joint work to be undertaken that improve these partners' capacity to meet their obligations under the environmental provisions of the FTAs they have concluded with the United States.

Measurable progress in executing projects under Jordan, Singapore and Chile work plans.

• Begin joint work in accordance with agreed work plans and progress indicators subject to review by a joint commission set up under the relevant environmental capacity building arrangement in order to meet FTA obligations and address environmental issues of mutual interest and concern.

Progress continues in the WTO on how to reduce harmful fish subsidies

• Final Agreement in Doha Development Round includes appropriate disciplines on harmful fish subsidies based on U.S. proposal for categorization into "red light" and "amber light" subsidies.

FAO Committee on Fisheries endorses ecolabeling guidelines for fisheries; implementation work begins

• WTO-consistent science-based guidelines for the establishment of ecolables in fisheries products are developed in FAO; case studies begun on select fisheries to test effectiveness of new guidelines.
• Work through FAO Fisheries Department to provide capacity building opportunities for developing countries seeking to implement FAO guidelines for ecolabeling in their fisheries activities.

Means for Achieving FY 2005 Targets for FY 2005 Target
IEA and non-IEA emergency oil stocks are at or above FY 2004 levels.

• Maintain an action plan for responding to a disruption in Middle East or other oil supplies and strengthen coordination with energy-producing and consuming countries as recommended in the President's National Energy Policy report.
• Encourage and support U.S. investment in major energy projects in Western and Central Africa, the Caspian region, Russia and the Americas.
• Coordinate closely with fellow International Energy Agency (IEA) members, including EU member states and Japan.
• Work with IEA and non-IEA states to increase the amount of emergency oil stocks held around the world as recommended by the President's National energy Policy Report; this cooperation would increase burden sharing in an energy crisis.
• Support U.S. international initiatives to develop advanced energy technologies, working closely with DOE, DOT, OES and regional bureaus.

Sixty percent of Debt Crisis Countries on IMF programs successfully reforming.

• Bilaterally, and multilaterally, encourage governments to adopt policies that promote economic growth and reduce the chance of economic crisis.
• Employ liberalized trade and investment arrangements to promote regional stability.
• Provide debt relief where necessary to deal with balance of payments crises, and fund assistance programs consistent with sound economic and social policies.
• Mobilize resources of international financial institutions to provide post-conflict assistance, including reconstruction, demobilization and capacity-building.