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UNCLAS STATE 036987 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD WTRO ECON
SUBJECT: DEMARCHE REQUEST - U.S. WTO REMANUFACTURING 
INITIATIVE 
 
¶1.  This is an action request.  See paragraph 2. 
 
¶2.  Summary and Action Request: As part of WTO Doha Round 
negotiations, the United States has strongly advocated an 
agreement on facilitating international trade in 
remanufactured goods.  Remanufactured goods are widely used 
in industrial, medical, and other applications in many 
advanced economies, and offer many advantages to end-users. 
In recognition of the importance remanufactured goods trade 
has for U.S. exporters and our trading partners, the U.S. 
first proposed a WTO negotiating text on trade in 
remanufactured goods in February 2007.  That text has since 
undergone several revisions.  Broadening support among WTO 
members for the text is essential to meeting our goals for 
remanufactured goods as part of any Doha Round agreement. 
Therefore, Post is requested to approach host government at 
the Econ Counselor or other appropriate level to seek host 
government co-sponsorship of the U.S. negotiating text on 
trade in remanufactured goods at the WTO. 
 
¶3.  Background on the text for Post's use as needed may be 
found in paragraph 5 below.  The full negotiating text 
(entitled "Reman Negotiating Text") and additional background 
materials for this demarche may be downloaded at the 
following unclassified State Intranet site.  These documents 
are available in English, French, and Spanish.  Posts may 
leave the full negotiating text and other background 
materials with host government officials. 
 
To access the unclassified intranet site: go to 
http://eb.state.gov/shortcut.cfm/DQS.  Documents are listed 
in the "WTO Remanufactured Goods Demarche" section. 
 
¶4.  In discussions with host governments, Post may draw as 
appropriate from the documents available for download via the 
link above, particularly the U.S. concept paper on 
remanufacturing (entitled "Reman Concept Paper"), the U.S. 
remanufacturing FAQ ("U.S. Reg FAQ"), and the U.S. 
illustrative examples of remanufactured goods ("Reman 
Examples").  Posts may also draw from the following key 
points: 
 
-- Remanufacturing is an increasingly used and relevant 
business practice that deserves the WTO's attention due to 
its many benefits. 
 
-- Liberalizing trade in remanufactured goods is a win-win 
for the economy and the environment.  (NOTE: The "Reman 
Concept Paper" document spells out in detail many of the 
advantages.) 
 
-- The U.S. Remanufacturing Initiative has its roots in the 
G8 led 3R process (Reduce, Reuse, Recycle).  A 3R Senior 
Officials Meeting took place in Bonn, Germany last fall. 
Future work on best practices in trade in remanufactured 
goods may also be part of the 3Rs agenda for 2008.  Most 3R 
participants came from environment ministries, and clearly 
understood the benefits of remanufacturing.  We encourage you 
to do reach out to your environment colleagues on this issue. 
 
 
-- The United States has consulted extensively with Members, 
and we believe our proposal for a modest post-Doha work 
program on remanufacturing complements efforts many Members 
are already undertaking to update their trade policies 
related to remanufacturing to reflect its growing importance. 
 We listened carefully to the concerns and questions we 
received from Members on our remanufacturing negotiating 
text, and made adjustments to this text to respond to these 
concerns (see paragraph 6). 
 
-- We are now at a point in the negotiations where Ministers 
will influence which non-tariff barrier negotiating texts 
move forward past modalities.   Initiatives such as the U.S. 
remanufacturing proposal can be an important contribution to 
a substantive non-tariff barrier (NTB) package for the Doha 
Round. 
 
-- We believe that Members have expressed a sufficient amount 
of support for our remanufacturing proposal for text-based 
negotiations to begin.  In particular, many Members have 
supported the view that remanufacturing is an important new 
industry, and have indicated interest in the work program we 
have proposed.  However, some Members continue to have 
questions about our proposed definition of a remanufactured 
good.  They have suggested that negotiations on the 
definition be part of the proposed work program. 
 
-- We believe there is time in the months after modalities to 
resolve the definition issue.  Leaving the definition open 
until the work program begins would detract from and could 
delay any discussion we would have on measures impacting 
trade in remanufactured goods. 
 
-- (For Chile, Singapore, Australia, Costa Rica, Dominican 
Republic, El Salvador, Guatemala, Nicaragua, Honduras, 
Bahrain, Oman, Peru, South Korea, Colombia, and Panama) As a 
current or prospective U.S. FTA partner, your country has 
already accepted, is implementing, or plans to implement 
similar language to the definition in our negotiating text. 
 
-- We have included "and has a warranty" to the definition in 
response to Members' calls for such language.  We hope that 
this provides Members with greater comfort regarding the 
definition.  NOTE: This is the only specific drafting 
suggestion that we have received from members. 
 
-- Members have asked the United States to indicate which 
remanufactured goods the text would cover.   As more and more 
sectors are adopting remanufacturing as a viable business 
practice and global investments in remanufacturing are 
increasing, we do not think it would be appropriate to draft 
a static list of remanufactured goods. 
 
-- This universe of goods is constantly changing.   To 
provide Members with more clarity on what we mean by 
remanufactured goods, in addition to the definition, we 
submitted a document entitled "Illustrative Examples of 
Remanufactured Goods" on December 20, 2007. 
 
-- We appreciate the consultations that delegations have done 
in the intervening period.  It is clear from our subsequent 
bilateral discussions that the practice is taking hold in 
other countries, as well, and that there is an active debate 
within many countries about the important surrounding trade 
policy issues that a work program would seek to address. 
 
-- We seek your co-sponsorship of our negotiating text, which 
would send a strong signal to other WTO Members that there is 
significant support for the text and that text-based 
negotiations should begin on this text after modalities have 
been reached. 
 
-- If you cannot co-sponsor at this time, we would appreciate 
a better understanding of your concerns.  If you have 
specific concerns with the text and can offer drafting 
suggestions, we would be happy to take them into 
consideration. 
 
¶5.  In 2007, the United States made great progress in 
advancing our remanufacturing initiative at the WTO: 
 
-- On February 28, 2007, we introduced the initial U.S. 
negotiating text on trade in remanufactured goods, which 
outlined U.S. expectations for discussing remanufacturing 
issues after the conclusion of the Doha Round. 
 
-- On March 8, 2007, the United States requested Members 
respond to questions designed to help the U.S. and other WTO 
Members to gain a better sense of Members' concerns regarding 
remanufactured goods.  (NOTE: This document is available via 
the link in paragraph 3, entitled "U.S. Questions.") 
 
-- On May 3, 2007, in response to requests from Members, we 
provided information on how the United States regulates trade 
in remanufactured goods, particularly prevention of deceptive 
practices, consumer protection, and intellectual property 
rights with respect to remanufactured goods.  (NOTE: This 
document is available via the link in paragraph 3, entitled 
"U.S. Reg FAQ.") 
 
-- On September 27, 2007, the United States submitted a 
series of bilateral requests of certain Members to eliminate 
specific barriers to trade in remanufactured goods.  The 
United States expects to reach a mutually satisfactory 
resolution to these issues as a part of the overall 
negotiated outcome of the Doha Round.  (NOTE: This document 
is available at the link in paragraph 3, entitled "U.S. Reman 
Bilateral Requests.") 
 
-- On October 26, 2007, the U.S. submitted a revised 
negotiating text on trade in remanufactured goods, and on 
December 20, 2007, submitted a second revised text.  (NOTE: 
This document "Reman Negotiating Text" is available via the 
link in paragraph 3. 
 
¶6.  Below is a summary of the key changes the U.S. has made 
to the negotiating text in response to Members' concerns: 
 
-- We have made it clear that this proposal is not seeking a 
tariff sectoral for remanufactured goods (text para 6 and 
footnote 1). 
 
-- We have bracketed the definition of a remanufactured good 
(text para. 5) so that Members understand we are willing to 
discuss this issue further in the context of this negotiation. 
 
-- We have included "and has a warranty" to this bracketed 
definition in response to Members' calls for such language, 
and hope that this provides Members with greater comfort 
regarding the definition. 
 
-- We have specified a biannual timeframe for Members to 
discuss trade in remanufactured goods to provide greater 
specificity to the process in the Council for Trade in Goods 
(text para. 3). 
 
-- We have clarified that the discussions themselves will 
take into account the special needs and interests of 
developing and least developed countries.   This reflects our 
expectation that Members' trade regimes should evolve in a 
WTO-consistent manner with respect to trade in remanufactured 
goods (text para 3). 
 
¶7.  Please slug responses for USTR (BNorton, CSmothers) and 
Commerce (EBrzytwa).  State POC for this demarche is Aaron 
Scheibe in the Economic, Energy, and Business Affairs 
Bureau's Office of Multilateral Trade.  Mr. Scheibe may be 
contacted at (202) 647-8202 or scheibeap@state.gov. 
RICE