1、UNITED STATES TRADE REPRESENTATIVE2022 National Trade Estimate Report onFOREIGN TRADE BARRIERS ACKNOWLEDGEMENTS The Office of the United States Trade Representative(USTR)is responsible for the preparation of this report.U.S.Trade Representative Katherine C.Tai gratefully acknowledges the contributio

2、ns of all USTR staff to the writing and production of this report and notes,in particular,the contributions of Mitchell Ginsburg,David Oliver,Russell Smith,and Spencer Smith.Thanks are extended to partner Executive Branch members of the Trade Policy Staff Committee(TPSC).The TPSC is composed of the

3、following Executive Branch entities:the Departments of Agriculture,State,Commerce,Defense,Energy,Health and Human Services,Homeland Security,Interior,Justice,Transportation,and Treasury;the Environmental Protection Agency;the Office of Management and Budget;the Council of Economic Advisers;the Counc

4、il on Environmental Quality;the U.S.Agency for International Development;the Small Business Administration;the National Economic Council;the National Security Council;and,the Office of the United States Trade Representative;as well as non-voting member the U.S.International Trade Commission.In prepa

5、ring the report,substantial information was solicited from U.S.Embassies.Office of the United States Trade Representative Ambassador Katherine C.Tai LIST OF FREQUENTLY USED ACRONYMS APHIS.Animal and Plant Health Inspection Service,U.S.Department of Agriculture CVA.WTO Customs Valuation Agreement DOL

6、.U.S.Department of Labor EU1.European Union FTA.Free Trade Agreement GATT.General Agreement on Tariffs and Trade GATS.General Agreement on Trade in Services GI.Geographical Indication GPA.WTO Agreement on Government Procurement HS.Harmonized System HTS.Harmonized Tariff Schedule ICT.Information and

7、Communication Technology IP.Intellectual Property MFN.Most-Favored-Nation MOU.Memorandum of Understanding MRL.Maximum Residue Limit SBA.U.S.Small Business Administration SME.Small and Medium-Sized Enterprise SPS.Sanitary and Phytosanitary TBT.Technical Barriers to Trade TFA.Trade Facilitation Agreem

8、ent TIFA.Trade and Investment Framework Agreement TRQ.Tariff-Rate Quota USAID.U.S.Agency for International Development USDA.U.S.Department of Agriculture USTR.United States Trade Representative VAT.Value-Added Tax WTO.World Trade Organization 1 Unless specified otherwise,all references to the Europe

9、an Union refer to the EU-27.TABLE OF CONTENTS FOREWORD.1 ALGERIA.5 ANGOLA.9 ARAB LEAGUE.15 ARGENTINA.21 AUSTRALIA.35 BAHRAIN.39 BANGLADESH.43 BOLIVIA.53 BRAZIL.57 BRUNEI DARUSSALAM.69 CAMBODIA.73 CANADA.77 CHILE.85 CHINA.89 COLOMBIA.129 COSTA RICA.135 COTE DIVOIRE.141 DOMINICAN REPUBLIC.147 ECUADOR.

10、151 EGYPT.161 EL SALVADOR.167 ETHIOPIA.173 EUROPEAN UNION.179 GHANA.227 GUATEMALA.235 HONDURAS.239 HONG KONG.243 INDIA.245 INDONESIA.267 ISRAEL.285 JAPAN.287 JORDAN.305 KENYA.309 KOREA.317 KUWAIT.329 LAOS.333 MALAYSIA.337 MEXICO.345 MOROCCO.357 NEW ZEALAND.361 NICARAGUA.363 NIGERIA.371 NORWAY.379 OM

11、AN.383 PAKISTAN.387 PANAMA.395 PARAGUAY.399 PERU.403 THE PHILIPPINES.407 QATAR.417 RUSSIA.421 SAUDI ARABIA.443 SINGAPORE.451 SOUTH AFRICA.455 SWITZERLAND.463 TAIWAN.467 THAILAND.477 TUNISIA.487 TURKEY.491 UNITED ARAB EMIRATES.501 UKRAINE.509 UNITED KINGDOM.517 URUGUAY.525 VIETNAM.527 APPENDIX I:REPO

12、RT ON PROGRESS IN REDUCING TRADE-RELATED BARRIERS TO THE EXPORT OF GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGIES APPENDIX II:U.S.TRADE DATA FOR SELECT TRADE PARTNERS IN RANK ORDER OF U.S.EXPORTS,2020-2021 FOREIGN TRADE BARRIERS|1 FOREWORD SCOPE AND COVERAGE The 2022 National Trade Estimate Report o

13、n Foreign Trade Barriers(NTE)is the 37th report in an annual series that highlights significant foreign barriers to U.S.exports,U.S.foreign direct investment,and U.S.electronic commerce.This document is a companion piece to the Presidents 2022 Trade Policy Agenda and 2021 Annual Report,published by

14、the Office of the United States Trade Representative(USTR)on March 1,2022.In accordance with section 181 of the Trade Act of 1974,as amended by section 303 of the Trade and Tariff Act of 1984 and amended by section 1304 of the Omnibus Trade and Competitiveness Act of 1988,section 311 of the Uruguay

15、Round Trade Agreements Act,and section 1202 of the Internet Tax Freedom Act,USTR is required to submit to the President,the Senate Finance Committee,and appropriate committees in the House of Representatives,an annual report on significant foreign trade barriers.The statute requires an inventory of

16、the most important foreign barriers affecting U.S.exports of goods and services,including agricultural commodities and U.S.intellectual property;foreign direct investment by U.S.persons,especially if such investment has implications for trade in goods or services;and U.S.electronic commerce.Such an

17、inventory enhances awareness of these trade restrictions,facilitates U.S.negotiations aimed at reducing or eliminating these barriers,and is a valuable tool in enforcing U.S.trade laws and strengthening the rules-based system.The NTE Report is based upon information compiled within USTR,the Departme

18、nts of Commerce and Agriculture,other U.S.Government agencies,and U.S.Embassies,as well as information provided by the public in response to a notice published in the Federal Register.This Report discusses key export markets for the United States,covering 60 countries;the European Union;Taiwan;Hong

19、Kong,China;and,the Arab League.As always,omission of particular countries and barriers does not imply that they are not of concern to the United States.The NTE Report covers significant barriers,whether they are consistent or inconsistent with international trading rules.Tariffs,for example,are an a

20、ccepted method of protection under the General Agreement on Tariffs and Trade 1994.Even a very high tariff does not violate international rules unless a country has made a commitment not to exceed a specified rate,i.e.,a tariff binding.Nonetheless,it would be a significant barrier to U.S.exports,and

21、 therefore covered in the NTE Report.Measures not consistent with international trade agreements,in addition to serving as barriers to trade and causes of concern for policy,are actionable under U.S.trade law as well as through the World Trade Organization and free trade agreements.Since early 2020,

22、there were significant trade disruptions as a result of temporary trade measures taken directly as a result of the COVID-19 pandemic.Trade barriers elude fixed definitions,but may be broadly defined as government laws and regulations or government-imposed measures,policies,and practices that restric

23、t,prevent,or impede the international exchange of goods and services;protect domestic goods and services from foreign competition;artificially stimulate exports of particular domestic goods and services;fail to provide adequate and effective protection of intellectual property rights;unduly hamper U

24、.S.foreign direct investment or U.S.electronic commerce;or impose barriers to cross-border data flows.The recent proliferation of data localization and other such restrictive technology requirements is of particular concern to the United States.2|FOREIGN TRADE BARRIERS The NTE Report classifies fore

25、ign trade barriers in 14 categories,as follows:Import policies(e.g.,tariffs and other import charges,quantitative restrictions,import licensing,pre-shipment inspection,customs barriers and shortcomings in trade facilitation or in valuation practices,and other market access barriers);Technical barrie

26、rs to trade(e.g.,unnecessarily trade restrictive or discriminatory standards,conformity assessment procedures,labeling,or technical regulations,including unnecessary or discriminatory technical regulations or standards for telecommunications products);Sanitary and phytosanitary measures(e.g.,measure

27、s applied to protect food safety,or animal and plant life or health that are unnecessarily trade restrictive,discriminatory,or not based on scientific evidence);Government procurement(e.g.,closed bidding and bidding processes that lack transparency);Intellectual property protection(e.g.,inadequate p

28、atent,copyright,and trademark regimes;trade secret theft;and inadequate enforcement of intellectual property rights);Services barriers(e.g.,prohibitions or restrictions on foreign participation in the market,discriminatory licensing requirements or standards,local presence requirements,and unreasona

29、ble restrictions on what services may be offered);Digital trade and electronic commerce(e.g.,barriers to cross-border data flows,including data localization requirements,discriminatory practices affecting trade in digital products,restrictions on the provision of Internet-enabled services,and other

30、restrictive technology requirements);Investment barriers(e.g.,limitations on foreign equity participation and on access to foreign government-funded research and development programs,local content requirements,technology transfer requirements,export performance requirements,and restrictions on repat

31、riation of earnings,capital,fees and royalties);Subsidies,especially export subsidies(e.g.,subsidies contingent upon export performance and agricultural export subsidies that displace U.S.exports in third country markets)and local content subsidies(e.g.,subsidies contingent on the purchase or use of

32、 domestic rather than imported goods);Competition(e.g.,government-tolerated anticompetitive conduct of state-owned or private firms that restricts the sale or purchase of U.S.goods or services in the foreign countrys markets or abuse of competition laws to inhibit trade;fairness and due process conc

33、erns by companies involved in competition investigatory and enforcement proceedings in the country);State-owned enterprises(e.g.,subsidies to and from industrial state-owned enterprises involved in the manufacture or production of non-agricultural goods or in the provision of services,as well as ind

34、ustrial state-owned enterprises that could contribute to overcapacity,or discriminating against foreign goods or services,acting inconsistently with commercial considerations in the purchase and sale of goods and services);FOREIGN TRADE BARRIERS|3 Labor(e.g.,concerns with failures by a government to

35、 protect internationally recognized worker rights,including through failure to eliminate forced labor,or failures to eliminate discrimination in respect of employment or occupation);Environment(e.g.,concerns with a governments levels of environmental protection,unsustainable stewardship of natural r

36、esources,and harmful environmental practices);and Other barriers(e.g.,barriers that encompass more than one category,such as bribery and corruption,or that affect a single sector).The prevalence of corruption is a consistent complaint from U.S.firms that trade with or invest in other economies.Corru

37、ption takes many forms and affects trade and development in different ways.In many countries and economies,it affects customs practices,licensing decisions,and the award of government procurement contracts.If left unchecked,bribery and corruption can negate market access gained through trade negotia

38、tions,frustrate broader reforms and economic stabilization programs,and undermine the foundations of the international trading system.Corruption also hinders development and contributes to the cycle of poverty.The Foreign Corrupt Practices Act prohibits U.S.companies from bribing foreign public offi

39、cials,and numerous other domestic laws discipline corruption of public officials at the State and Federal levels.The United States continues to play a leading role in addressing bribery and corruption in international business transactions and has made real progress over the past quarter century bui

40、lding international coalitions to fight bribery and corruption.Pursuant to Section 1377 of the Omnibus Trade and Competitiveness Act of 1988,USTR annually reviews the operation and effectiveness of U.S.telecommunications trade agreements to make a determination on whether any foreign government that

41、 is a party to one of those agreements is failing to comply with that governments obligations or is otherwise denying,within the context of a relevant agreement,“mutually advantageous market opportunities”to U.S.telecommunication products or services suppliers.The NTE Report highlights both ongoing

42、and emerging barriers to U.S.telecommunication services and goods exports from the annual review called for in Section 1377.TRADE IMPACT OF FOREIGN BARRIERS Trade barriers or other trade distorting practices affect U.S.exports to a foreign market by effectively imposing costs on such exports that ar

43、e not imposed on goods produced in the importing market.Estimating the impact of a foreign trade measure on U.S.exports of goods requires knowledge of the additional cost the measure imposes on them,as well as knowledge of market conditions in the United States,in the foreign market imposing the mea

44、sure,and in third country markets.In practice,such information often is not available.In theory,where sufficient data exist,an approximate impact of tariffs on U.S.exports could be derived by obtaining estimates of supply and demand price elasticities in the importing market and in the United States

45、.Typically,the U.S.share of imports would be assumed constant.When no calculated price elasticities are available,reasonable postulated values would be used.The resulting estimate of lost U.S.exports would be approximate,depend on the assumed elasticities,and would not necessarily reflect changes in

46、 trade patterns with third country markets.Similar procedures might be followed to estimate the impact of subsidies that displace U.S.exports in third country markets.The estimation of the impact of non-tariff measures on U.S.exports is far more difficult,since no readily available estimate exists o

47、f the additional cost these restrictions impose.Quantitative restrictions or import licenses limit(or discourage)imports and thus are likely to raise domestic prices,much as a tariff does.However,without detailed information on price differences between markets and on relevant supply and 4|FOREIGN T

48、RADE BARRIERS demand conditions,it would be difficult to derive the estimated effects of these measures on U.S.exports.Similarly,it would be difficult to quantify the impact on U.S.exports(or commerce)of other foreign practices,such as government procurement policies,nontransparent standards,or inad

49、equate intellectual property rights protection.The same limitations apply to estimates of the impact of foreign barriers to U.S.services exports.Furthermore,the trade data on services exports are extremely limited in detail.For these reasons,estimates of the impact of foreign barriers on trade in se

50、rvices also would be difficult to compute.With respect to investment barriers,no accepted techniques for estimating the impact of such barriers on U.S.investment flows exist.The same caution applies to the impact of restrictions on electronic commerce.To the extent possible,the NTE Report endeavors

51、to present estimates of the impact on U.S.exports,U.S.foreign direct investment,or U.S.electronic commerce of specific foreign trade barriers and other trade distorting practices.In some cases,stakeholder valuations estimating the effects of barriers may be contained in the NTE Report.The methods fo

52、r computing these valuations are sometimes uncertain.Hence,their inclusion in the NTE Report should not be construed as a U.S.Government endorsement of the estimates they reflect.Where government-to-government consultations related to specific foreign practices were proceeding at the time of this NT

53、E Reports publication,estimates were excluded,in order to avoid prejudice to these consultations.March 2022 FOREIGN TRADE BARRIERS|5 ALGERIA TRADE AGREEMENTS The United StatesAlgeria Trade and Investment Framework Agreement The United States and Algeria signed a Trade and Investment Framework Agreem

54、ent(TIFA)on July 13,2001.This Agreement is the primary mechanism for discussions of trade and investment issues between the United States and Algeria.IMPORT POLICIES Tariffs and Taxes Tariffs Algeria is not a Member of the World Trade Organization(WTO).Goods imported into Algeria currently face a ra

55、nge of tariffs,from zero percent to 200 percent.Algerias average Most-Favored-Nation(MFN)applied tariff rate was 18.9 percent in 2019(latest data available).Algerias average MFN applied tariff rate was 23.6 percent for agricultural products and 18.2 percent for non-agricultural products in 2019(late

56、st data available).Nearly all finished manufactured products,dried distillers grains,and corn gluten feed entering Algeria are subject to a 30 percent tariff rate,but some limited categories are subject to a 15 percent rate.Goods facing the highest rates are those for which equivalents are currently

57、 manufactured in Algeria.In January 2019,citing the need to encourage local production and ease pressure on the countrys foreign exchange reserves,Algeria implemented new temporary additional safeguard duties(DAPs)of 30 percent to 200 percent(the higher rate applies only to ten cement tariff lines u

58、nder the Harmonized System heading 25.23)on a list of more than 1,000 manufactured and agricultural goods.The few items that remain duty free are generally European Union(EU)-origin goods that are used in manufacturing and are exempt from tariffs under the 2006 EUAlgeria Association Agreement.The or

59、iginal DAP list was revised in April 2019 to exempt a number of food-and agriculture-related products including tree nuts,peanuts,butter,dried fruits,and fresh or chilled beef.That list remains in effect,though the government announced in January 2022 that it would double it(details to be released s

60、eparately),while still describing it as temporary.Taxes Most imported goods are subject to the 19.0 percent value-added tax(VAT),and an additional 0.3 percent tax is levied on a good if the applicable customs value exceeds Algerian dinars(DZD)20,000(approximately$148).Non-Tariff Barriers Import Bans

61、 and Import Restrictions Since January 2009,Algerias Ministry of Health has restricted the import of a number of generic pharmaceutical products and medical devices.In 2015,the Ministry of Health published the most recent list of 357 generic pharmaceutical products whose importation is prohibited.Si

62、nce 2007,the Algerian Government has banned the import of used medical equipment without a special exception.Algeria has applied the regulation broadly to block the re-importation of machinery sent abroad for maintenance under 6|FOREIGN TRADE BARRIERS warranty,even for equipment owned by state-run h

63、ospitals.In May 2020,Algeria issued a decree to exempt customs duties and VAT for medical devices,pharmaceutical products,and testing equipment imported to combat the COVID-19 pandemic.Algeria renewed the decree in May 2021.Beyond medical devices,Algeria bans most types of used machinery from entry,

64、except for refurbished assembly line equipment used in domestic industries.In February 2021,the Ministry of Commerce issued a new schedule for 2021 that established a separate seasonal ban for each agricultural product.The new schedule adjusted a year-round restriction on almond imports to a seasona

65、l ban from June to August 2021.In September 2021,the Algerian Government restricted the import of animal products such as tuna,yogurt,ice cream,liquid egg yolks,lambs wool and camel hair,corned beef,live bait for fishing,and non-food products such as baseball bats.In October 2021,Algeria restricted

66、the import of products falling under the tariff heading of“other,”which includes products that are not classified within a certain category and products for which there is minimal demand.Algeria justified these decisions as necessary to reduce the countrys import bill and combat fraud.The Ministry o

67、f Finance instructed banks,in August 2021,to suspend the processing of accounts for importers of products intended for resale starting at the end of October 2021 unless importers complied with a March 2021 decree requiring them to update their import registration to include only one category of prod

68、uct per company.The Ministry subsequently communicated implementation instructions to the Ministry of Commerces National Center of Commerce Registry(CNRC),but not to importers themselves.Importers must approach individually to seek guidance regarding their particular situation,rather than rely on pu

69、blicly available information.The stated goal of this process is to reduce the number of importers from 15,000 to 9,000,according to the Minister of Commerce in October 2021.Quantitative Restrictions In August 2020,Algeria released a new Book of Specifications concerning the automotive industry,repla

70、cing the previous automotive regulatory regime established in 2017.As of March 2022,the Algerian Government has not granted any company authorization to import under the new regime.The new Book of Specifications covers automobiles,buses,trucks,and construction equipment,and establishes an import quo

71、ta of up to 200,000 vehicles per year,with an annual cap of$2 billion.Due to customs,VAT,and other taxes,vehicles cost more than double the market rates when purchased by individuals overseas and imported.While the import quota on automobile kits for assembly of passenger vehicles is currently set a

72、t zero,the new regulation indicated that the Algerian Government would set a new quota for automotive companies that receive authorization to engage in local assembly or manufacturing.No new cars for sale in dealerships have been imported into Algeria since the 2020 regime was announced.A provision

73、in the June 2021 Complementary Finance Law permits Algerians to import used cars which are three years old or less,though purchasers will be required to use their own foreign currency.Algeria has established a maximum import volume of four million metric tons of bread(common)wheat,accounting for nea

74、rly two-thirds of annual average imports.The Algerian President announced in August 2021 that moving forward,the state grains agency(OAIC)will be the countrys exclusive wheat importer,so as to counteract alleged“illicit practices”by private importers.However,the Algerian Government had not implement

75、ed this policy as of March 2022.Customs Barriers and Trade Facilitation Clearing goods through Algerian Customs is the most frequently reported problem facing companies.Delays can take weeks or months,in many cases without explanation.In addition to a certificate of origin,the Algerian Government re

76、quires all importers to provide certificates of conformity and quality from an FOREIGN TRADE BARRIERS|7 independent third party.Algerian Customs requires shipping documents be stamped with a“Visa Fraud”note from the Ministry of Commerce,indicating that the goods have passed a fraud inspection before

77、 the goods are cleared.Many importations also require authorizations from multiple ministries,which frequently causes additional bureaucratic delays,especially when the regulations do not clearly specify which ministrys authority is being exercised.Storage fees at Algerian ports of entry are high an

78、d the fees double when goods are stored for longer than 10 days.Regulations introduced in October 2017 require importers to deposit with a bank a financial guarantee equal to 120 percent of the cost of the import 30 days in advance,which especially burdens small and medium-sized importers that often

79、 lack sufficient cash flow.SANITARY AND PHYTOSANITARY BARRIERS Algeria bans the production,importation,distribution,or sale of seeds that are the products of biotechnology.There is an exception for biotechnology seeds imported for research purposes.In 2020,U.S.and Algerian authorities finalized expo

80、rt certificates for chicken-hatching eggs,day-old chicks,and bovine embryos.U.S.and Algerian veterinary authorities continue to engage in negotiations on export certificates to allow for the importation of U.S.bovine semen,beef cattle,dairy breeding cattle,and beef and poultry meat and meat products

81、.Algeria maintains strict animal health certificates for animals and animal products,dairy and dairy products,as well as processed products of animal origin.GOVERNMENT PROCUREMENT Algeria announced in August 2015 that all ministries and state-owned enterprises would be required to purchase domestica

82、lly manufactured products whenever available.It further announced that the procurement of foreign goods would be permitted only with special authorization at the ministerial level and if a locally made product could not be identified.Algeria requires approval from the Council of Ministers for expend

83、itures in foreign currency that exceed DZD 10 billion (approximately$74 million).In 2017,this requirement delayed payments to at least one U.S.company.As Algeria is not a Member of the WTO,it is neither a Party to the WTO Agreement on Government Procurement nor an observer to the WTO Committee on Go

84、vernment Procurement.INTELLECTUAL PROPERTY PROTECTION Algeria was moved from the Priority Watch List to the Watch List in the 2021 Special 301 Report.Algeria has taken some positive steps to improve intellectual property(IP)protection and enforcement,including by increasing coordination on IP enforc

85、ement and engaging in capacity building and training efforts.However,concerns remain,including regarding the lack of an effective mechanism for the early resolution of potential pharmaceutical patent disputes,inadequate judicial remedies in cases of patent infringement,the lack of administrative opp

86、osition in Algerias trademark system,and the need to increase enforcement efforts against counterfeiting and piracy.In addition,Algeria does not provide an effective system for protecting against the unfair commercial use,as well as unauthorized disclosure,of undisclosed test or other data generated

87、 to obtain marketing approval for pharmaceutical products.8|FOREIGN TRADE BARRIERS BARRIERS TO DIGITAL TRADE AND ELECTRONIC COMMERCE In May 2018,Algeria enacted a law requiring electronic commerce platforms conducting business in Algeria to register with the government and to host their websites fro

88、m a data center located in Algeria.Such localization requirements impose unnecessary costs on service suppliers by requiring redundant storage systems.Such requirements are disproportionately burdensome for small firms.Algeria permits citizens to purchase goods from outside the country using interna

89、tional credit cards,with a maximum value per transaction of DZD100,000(approximately$740).Algerian foreign exchange regulations prohibit the use of certain online payment processors to transfer money from one account to another.INVESTMENT BARRIERS Prior to 2020,Algerias investment law required Alger

90、ian ownership of at least 51 percent in all projects involving foreign investments(known as the 51/49 rule).This restriction was lifted in 2020.However,the 2021 Finance Law re-imposed the 51 percent requirementwith retroactive application to foreign companies already established in Algeria and ownin

91、g more than 49 percent of operationson activities involving raw materials;products and goods imported for resale in the same condition(subsequently these products have been exempted from the requirement);as well as for companies in the strategic sectors of mining,upstream energy activities,industrie

92、s related to the military,transportation infrastructure,and pharmaceutical production.As there is no single process for registering foreign investments,prospective investors must work with the ministry or ministries relevant to a particular project to negotiate,register,and set up their businesses.U

93、.S.businesses have commented that the process is subject to political influence and that a lack of transparency in the decision-making process makes it difficult to determine the reasons for any delays.The 2020 Book of Specifications for the automotive industry increased domestic content requirement

94、s in production.Minimum domestic content integration rates for domestic assembly plants are now 30 percent in the first year,35 percent after three years,40 percent after four years,and 50 percent after five years.Additionally,the Book of Specifications mandates that automotive importers be 100 perc

95、ent Algerian-owned,and retroactively excludes foreign companies from holding ownership stakes in importation companies and dealerships.STATE-OWNED ENTERPRISES State-owned enterprises(SOEs)comprise about two-thirds(by market value)of the Algerian economy.The national oil and gas company Sonatrach is

96、the most prominent SOE,but SOEs are present in all sectors of the economy.SOEs leverage their position in the market to gain advantage over privately-owned competitors.For example,state-owned telecommunications provider Algerie Telecom holds a monopoly over all undersea data cable traffic in and out

97、 of Algeria,offering services at a considerable advantage over private companies operating in the telecommunications sector.FOREIGN TRADE BARRIERS|9 ANGOLA TRADE AGREEMENTS The United StatesAngola Trade and Investment Framework Agreement The United States and Angola signed a Trade and Investment Fra

98、mework Agreement(TIFA)on May 19,2009.This Agreement is the primary mechanism for discussions of trade and investment issues between the United States and Angola.IMPORT POLICIES Tariffs and Taxes Tariffs Angolas average Most-Favored-Nation(MFN)applied tariff rate for all products was 10.2 percent in

99、2019(latest data available).Angolas average MFN applied tariff rate was 19.3 percent for agricultural products and 8.7 percent for non-agricultural products in 2019(latest data available).Angola has bound 100 percent of its tariff lines in the World Trade Organization(WTO),with an average WTO bound

100、tariff rate of 59.1 percent,and average bound rates of 52.7 percent for agricultural products,and 60.1 percent for non-agricultural products.Revised customs measures entered into force in August 2018.These measures exempt imports of household products,medicines,and hospital equipment from tariffs.Th

101、ey assign minimum tax and customs duty rates for the import of essential goods and other goods not locally manufactured.Medicines,educational materials(i.e.,schoolbooks),and automotive parts imported by automotive assembly investors in Angola remain exempted from customs duties under this regime.In

102、response to the COVID-19 pandemic,Angola has allowed all medicines and biosafety material to be imported duty free.Taxes In October 2019,Angola introduced a 14 percent value-added tax(VAT)and revoked a 10 percent consumer tax previously imposed on all products,domestic and imported,albeit with numer

103、ous product and service exemptions.In August 2020,the Government of Angola decreased the VAT for certain agricultural products.Law No.42/20,approving the 2021 State Budget,entered into force January 1,2021.The law introduced a new VAT the Simplified VAT Regime which applies to taxpayers whose annual

104、 turnover and import operations for the previous 12 months was approximately$580,000 or less.The law also increased the taxable basis of some imported goods,especially luxury products,by specifying that the VAT will be charged based on an amount that includes duties,taxes,and ancillary expenses,amon

105、g others.Separately,the law reduced from 14 percent to 5 percent the VAT applied to the import and supply of certain goods,including food stuffs,detergents,and agricultural seeds and raw materials,the latter two to boost local agricultural production.10|FOREIGN TRADE BARRIERS On October 28,2021,Ango

106、la approved the reduction of VAT from 14 percent to 7 percent for additional items of the basic food basket not covered in Law 42/20.The measure was intended to lower the cost of 28 regularly consumed items that comprise the basic food basket,as well as the cost of industrial and agricultural produc

107、tion equipment and small-to medium-sized fishing boats,with the goal of boosting agricultural and fisheries production.Non-Tariff Barriers Import Licensing The importation of certain goods requires authorization from specific government ministries,which can result in delays and extra costs.Importers

108、 must be registered with the Ministry of Commerce for the category of product they are importing.Only registered companies can apply for an import license,which is required for imports of sensitive products such as food,medical devices,pharmaceuticals,and agricultural inputs.Importers who possess a

109、valid general import license issued by the Ministry of Commerce and a specific import license issued by the Ministry of Health may import pharmaceuticals products.Import Restrictions Presidential Decree No.23/19,which entered into force in January 2019,appears aimed to restrict the importation of ce

110、rtain products unless the importer can demonstrate the product is not available domestically.The Decree currently includes more than 54 products,mainly agricultural goods and applies to any imports that compete with goods produced in the Luanda-Bengo special economic zone.Impacted products include p

111、oultry,maize flour,and diapers.The United States continues to raise concerns about this decree with Angola bilaterally and at the WTO Council for Trade in Goods,the WTO Committee on Market Access,and the WTO Committee on Agriculture.In 2020,Angola announced that it would stop providing treasury fund

112、s for the import of products of high domestic consumption which Angola has the capacity to produce.However,as of March 2022,the measure has not been put into effect.The Ministry of Industry and Trade stated this measure,part of the Program to Support Production,Diversification of Exports and Import

113、Substitution,aims to protect national production and promote local economic development.The measure focuses on 11 products:sorghum,millet,beans,peanuts,carrots,garlic,onions,tomatoes,sweet potatoes,bottled water,and dishwashing soap.Importers may import these items provided they have access to their

114、 own sources of foreign exchange.(For further information see Foreign Exchange section.)Customs Barriers and Trade Facilitation Administration of Angolas customs service has improved in the last few years but remains a barrier to accessing the market.Importers still express concerns regarding the tu

115、rnaround time between customs clearance and market delivery,which averages 38 days.Traders often contract voluntarily for pre-shipment inspection services from private inspection agencies.Angola has not yet notified its customs valuation legislation to the WTO,nor has it responded to the Checklist o

116、f Issues that describes how the Customs Valuation Agreement is being implemented.FOREIGN TRADE BARRIERS|11 TECHNICAL BARRIERS TO TRADE/SANITARY AND PHYTOSANITARY BARRIERS Technical Barriers to Trade In January 2021,Angola announced that it will start requiring imports of basic food basket products i

117、n bulk rather than pre-packaged purportedly to save foreign exchange and support the local packaging industry.On March 17,2021,Angola published Executive Decree No.63/21 and it took effect on June 17,2021.The decree requires that imports of 15 agricultural and food products be imported in containers

118、 of 25-50 kg and the packaging into retail denominations must be performed in Angola.The decree applies to sugar,rice,wheat and corn flour,beans,powdered milk,cooking oil,animal feed,coarse and refined salt,wheat semolina,pork and beef,margarine,and soap,with some exceptions.Industry stakeholders ha

119、ve raised concerns over the lack of advance consultation with importers or notification to the WTO and have expressed concern the measure may lead to monopolies in packaging and labeling as well as shortages.The United States requested Angola to notify the decree to the WTO via the Angola TBT Enquir

120、y Point to allow for stakeholder comments.However,Angola did not notify the decree,and it went into effect on June 17,2021.The United States will continue to monitor the implementation of the decree.Sanitary and Phytosanitary Barriers Angola has not introduced a risk management scheme for veterinary

121、 and sanitary control purposes.Therefore,consignments of imports classified in Chapters 2 to 23 of the Harmonized System(including animal and vegetable products and foodstuffs)must be laboratory tested prior to entry into Angola and accompanied by a health certificate.Agricultural Biotechnology Ango

122、la does not allow the use of agricultural biotechnology in production,and imports containing genetically engineered(GE)components are limited to food aid and scientific research.Angola also prohibits the importation of viable GE grain or seed.The Ministry of Agriculture and Fisheries requires import

123、ers to present documentation certifying that their goods do not include biotechnology products.Importation of GE food is permitted when it is provided as food aid,but the product must be milled before it arrives in Angola.The Ministry of Agriculture and Fisheries allows,subject to regulations and co

124、ntrols,biotechnology imports for scientific research.GOVERNMENT PROCUREMENT According to investors,the bidding process for government procurement remains deficient in terms of transparency and objectivity,and information about government projects and tenders is often not readily available from autho

125、rities.In February 2021,an international port services company filed an appeal at the Supreme Court of Angola challenging a 20-year multipurpose terminal service contract awarded to a different company in January 2021.The complainant cited irregularities and changes to the tender conditions througho

126、ut the bidding process.In an effort to address investor concerns,on December 23,2020,the Angolan National Assembly approved Law No.41/20,revising its Public Procurement Law(PPL)and revoking Law 9/16 of June 2016.The revised PPL entered into force on January 22,2021.The revised law seeks to increase

127、transparency in public resources utilization and to simplify procedures in public works and public services procurement,in addition to the acquisition of goods by public entities.The most important changes in the law include encouraging administrative concessions regarding the granting of rights,lan

128、d or property related to public works,public services,and exploration of the public domain.The law calls for such contracts to be carried out though public-private-partnerships.The law also provides that public procurement contract values in 12|FOREIGN TRADE BARRIERS the amount of at least 500 milli

129、on Kwanzas(approximately$770,000)or more be approved by the President of the Republic and submitted to the Tribunal de Contas(Supreme Audit Institution)for oversight.The law introduced two new procurement procedures.The first is the Dynamic Electronic Procedure,which provides for the public acquisit

130、ion of standard goods and services using an electronic platform.Any interested party that is properly registered may participate.The second spells out the procedure for emergency procurement,such as those required during a state of calamity or during a pandemic.A punitive clause for the most serious

131、 breaches of contract by an individual or corporation party to such contracts contains fines ranging from$1,650 to$3,300 for individuals,and$6,600 to$15,300 for corporations.Through the revised and simplified PPL,Angola seeks to expand local investment and attract more foreign direct investment.Ango

132、la also expects that the PPL will reduce corruption,nepotism,and fraud,while increasing competitiveness and improving the Angolan business environment.The United States will monitor implementation and enforcement of the law in light of the continued weak state of institutions and the lack of necessa

133、ry technical capacity to implement and enforce laws.Angola is neither a Party to the WTO Agreement on Government Procurement,nor an observer to the WTO Committee on Government Procurement.INTELLECTUAL PROPERTY PROTECTION Although the Angolan National Assembly continues to work to strengthen existing

134、 intellectual property(IP)legislation,the protection and enforcement of IP remains weak.Trade in counterfeit and pirated goods is widespread.The Ministry of Commerce tracks and monitors the seizures of counterfeit and pirated goods,but publishes these statistics only on an ad hoc basis.Stakeholders

135、continue to have concerns regarding delays in the processing of patent applications.INVESTMENT BARRIERS The Angolan Government enacted a private investment law in 2018 aimed at facilitating investment.The law removed the previous requirement that foreign investors identify a local partner with a 35

136、percent stake prior to investing in priority sectors,thereby allowing foreign investors to own investments in their entirety.The law also eliminated minimum levels of foreign direct investment and established firm sunset clauses for tax incentives.In addition to changes to the legal framework for in

137、vestment,the government created the Agency for Private Investment and Exports Promotion,a state-run agency with the goal of facilitating investment and export processes.The law,however,does not apply to investment in the petroleum,diamond,and financial sectors,which remain governed by sector-specifi

138、c legislation,including requirements to form joint venture partnerships with local companies and to use Angola-domiciled banks for many services.Reforms around improving the investment climate for investors are encouraging;however,investors report that the regulatory and judicial framework of enforc

139、ement institutions remains challenging.Reports indicate that a lack of local judicial capacity to resolve investment disputes is a challenge for foreign investors.FOREIGN TRADE BARRIERS|13 OTHER BARRIERS Bribery and Corruption Corruption remains prevalent in Angola for reasons including an inadequat

140、ely trained civil service,a highly centralized bureaucracy,a lack of funding to improve capacity,and a lack of uniform implement action of anticorruption laws.“Gratuities”and other facilitation fees often are requested to secure quicker service and approval.It is common for government officials to h

141、ave substantial private business interests that are not publicly disclosed.Likewise,it is difficult to determine the ownership of some Angolan companies and the ownership structures of banks.Access to investment opportunities and public financing continues to favor those connected to the government

142、and the ruling party.Laws and regulations regarding conflicts of interest,though now codified,are yet to be widely implemented or enforced.Some investors report pressure to form joint ventures with specific Angolan companies believed to have connections to political figures.While levels of corruptio

143、n and bribery have declined,they still exist.The new Criminal Law and Criminal Procedure Codes(Law No.38/20 and Law No.39/20)entered into force in February 2021.Notable changes include corporate criminal liability,harsh penalties for corruption of public officials,criminalization of private corrupti

144、on,and provisions for seizure of proceeds of a crime,among others.The law also contains provisions that criminalize bribery of national and foreign public officials;seek an appropriate balance between immunities and the ability to effectively investigate,prosecute,and adjudicate offences;enhance coo

145、peration within local law enforcement authorities;and designate a central anticorruption authority.Enforcement of anticorruption laws remains poor.The United States and the international community have engaged in anticorruption initiatives to help Angola attain its anticorruption objectives.For inst

146、ance,on February 16,2021,the U.S.Department of State opened a competition for a project that supports Angolan civil society and independent media to increase public awareness and support for anticorruption and transparency reform.Export Taxes In December 2019,a revised customs tariff code entered in

147、to force,which among other things eliminated the five percent export tax on crude ores.Foreign Exchange For many years,a leading business challenge in Angola has been the scarcity of foreign exchange,and the resulting difficulty of foreign investors to repatriate profits and Angolan companies to pay

148、 foreign suppliers.International and domestic companies operating in Angola face significant delays in securing foreign exchange approval for remittances to cover key operational expenses,including to import goods and expatriate salaries.Profit and dividend remittances are even more problematic for

149、most companies.However,since January 2020,oil companies with Angolan exploration and production rights have been permitted to sell foreign exchange directly to Angolan commercial banks.The decision ended a five-year policy that ensured that the international oil companies sold$240 million in foreign

150、 exchange monthly to the BNA,which in turn resold to commercial banks in monthly and eventually daily auctions.In addition,in August 2020,the National Bank of Angola(BNA)issued Notice 17/20,which implemented new rules and procedures governing foreign exchange transactions applicable to individuals.A

151、mong other amendments,as of September 2020,foreign employees working in Angola must open a local bank account into which income from their employer will be deposited in local currency;employers may no longer transfer remunerations to foreign employees accounts abroad.However,a foreign employee may p

152、urchase 14|FOREIGN TRADE BARRIERS foreign currency upon presentation of a valid employment agreement and work permit.Under the notice,Angolan banking institutions should also verify that the employees income was transferred by a tax compliant employer.In 2021,the BNA issued two notices intended to r

153、egulate foreign exchange transactions and procedures.Notice 4/21 took effect on April 14,2021,and provides that:(i)import operations are no longer subject to licensing by the BNA regardless of the relevant settlement period;(ii)the maximum period allowed for advance payments in import operations is

154、90 days(reduced from 180 days);and(iii)regardless of the method of payment,commercial banks will only debit the relevant amount in the importers bank account when the funds are ready to be transferred abroad.The new notice provides greater flexibility in export operations,and may allow exporters to

155、dispose more freely of revenues from their export operations.This contrasts with the previous regime,which contained burdensome requirements on the sale and disposition of foreign currency.Notice 5/21 took effect on May 14,2021,and introduces generally more restrictive rules and procedures for indiv

156、iduals carrying out foreign exchange transactions,with the goal of combating money-laundering and terrorist financing.Under this notice,foreign exchange transactions may only be carried out:(1)at the request of customers who have properly opened accounts;(2)if the financial capacity of the originato

157、r is confirmed,to ensure the legitimacy of the possession of the funds used to purchase the foreign currency;and(3)if the total amount of the requested transaction and the transactions already carried out in the calendar year are compatible with the originators financial capacity.The notice also mor

158、e than doubles the cumulative annual limit on foreign exchange transactions carried out by residents,from$120,000 to$250,000.The BNA may approve exceptions to this limit on a case-by-case basis.Several types of transactions are not subject to the annual$250,000 limit,including payments for health ca

159、re,education,accommodation,transport,and legal services,and certain transfers of funds of foreign exchange residents.Foreign workers who are not residents are required to deposit their income into an account at a financial institution registered in Angola.However,the notice establishes an exception

160、for foreign workers in the oil sector,who may have their remunerations transferred abroad by their employers.Business Licensing In October 2021,the National Assembly approved Law No.26/21,which revoked the Law of Commercial Activities No.1/07 of May 2007.Under Law No.26/21,the authority to license b

161、usiness activity,which previously rested with the Ministry of Commerce and since July 2021 with provincial governments and municipal administrations,was transferred to the President.The law also expands business licensing eligibility.Commercial stakeholders have expressed concern that the transfer o

162、f authority could create dependence on higher governmental powers to authorize commercial activity.FOREIGN TRADE BARRIERS|15 ARAB LEAGUE The 22 Arab League members are the Palestinian Authority and the following countries:Algeria,Bahrain,Comoros,Djibouti,Egypt,Iraq,Kuwait,Jordan,Lebanon,Libya,Maurit

163、ania,Morocco,Oman,Qatar,Saudi Arabia,Somalia,Sudan,Syria,Tunisia,the United Arab Emirates,and Yemen.The effect of the Arab Leagues boycott of Israeli companies and Israeli-made goods(originally implemented in 1948)on U.S.trade and investment in the Middle East and North Africa varies from country to

164、 country.On occasion,the boycott can pose a barrier(because of potential legal restrictions)for individual U.S.companies and their subsidiaries doing business in certain parts of the region.However,efforts to enforce the boycott have for many years had an extremely limited practical effect overall o

165、n U.S.trade and investment ties with many key Arab League countries.About half of the Arab League members are also Members of the World Trade Organization(WTO),and are thus obligated to apply WTO commitments to all current WTO Members,including Israel.To date,no Arab League member,upon joining the W

166、TO,has invoked the right of non-application of WTO rights and obligations with respect to Israel.In 2020,the United Arab Emirates,Bahrain,Morocco,and Sudan announced normalization agreements with Israel.The normalization agreements include an intent to expand formal trade and investment ties,among o

167、ther economic operations,between these Arab League countries and Israel.Egypt and Jordan,having earlier signed peace treaties with Israel,have long engaged in formal bilateral trade with Israel and publish official statistics regarding that trade.Currently,such statistics from other Arab League memb

168、ers either are not published at all or are not regularly updated.The United States has long opposed the Arab League boycott,and U.S.Government officials from a variety of agencies frequently have urged Arab League member governments to end it.The U.S.Department of State and U.S.embassies in relevant

169、 Arab League host capitals take the lead in raising U.S.concerns related to the boycott with political leaders and other officials.The U.S.Departments of Commerce and Treasury and the Office of the United States Trade Representative(USTR)monitor boycott policies and practices of Arab League members,

170、and,aided by U.S.embassies,lend advocacy support to firms facing boycott-related pressures.The Arab League boycott of Israel was the impetus for the creation of U.S.antiboycott authorities during the 1970s.U.S.antiboycott laws(the 1976 Tax Reform Act(TRA)and the Anti-boycott Act of 2018,Part II of t

171、he Export Control Reform Act of 2018,50 U.S.C.Sections 4801-4852(ECRA),prohibit U.S.firms from taking certain actions with the intent to comply with foreign boycotts that the United States does not sanction.As a practical matter,foreign countries boycotts of Israel,as reflected in government directi

172、ves,laws,and regulations,continue to be the principal boycotts with which U.S.companies are concerned.The ECRAs antiboycott provisions are implemented by Part 760 of the Export Administration Regulations,15 CFR Parts 770-774(EAR).The Department of Commerces Office of Antiboycott Compliance(OAC)overs

173、ees enforcement of Part 760,which prohibits certain types of conduct by U.S.persons(including businesses)undertaken in support of any unsanctioned foreign boycott maintained by a country against a country friendly to the United States.Prohibited activities include,inter alia,agreements by U.S.compan

174、ies to refuse to do business with a boycotted country,furnishing by U.S.companies of information about business relationships with a boycotted country,and implementation by U.S.companies of letters of credit that include boycott terms.The TRAs antiboycott provisions,administered by the Department of

175、 the Treasury and the Internal Revenue Service,deny certain foreign tax benefits to companies that agree to requests from boycotting countries to participate in certain types of boycotts.The U.S.Governments efforts to oppose the Arab League boycott include alerting appropriate officials in the boyco

176、tting countries to the presence of prohibited boycott requests and the adverse impact of those requests on U.S.firms and on Arab League members ability to expand trade and investment ties with the 16|FOREIGN TRADE BARRIERS United States.In this regard,OAC officials periodically visit Arab League mem

177、bers to consult with appropriate counterparts on antiboycott compliance issues.These consultations provide technical assistance to those counterparts to identify language in commercial documents that may constitute or be related to prohibited and/or reportable boycott requests under Part 760 of the

178、EAR.Boycott activity can be classified according to three categories.The primary boycott prohibits the importation of goods and services from Israel into the territory of Arab League members.This prohibition may conflict with the obligation of Arab League members that are also Members of the WTO to

179、treat products of Israel on a Most-Favored-Nation basis.The secondary boycott prohibits individuals,companies(both private and public sector),and organizations in Arab League members from engaging in business with U.S.firms and firms from other countries that contribute to Israels military or econom

180、ic development.Such foreign firms may be placed on a boycott list maintained by the Central Boycott Office(CBO),a specialized bureau of the Arab League.In the past,the CBO has often provided this list to Arab League member governments for their use in implementing national boycotts.The tertiary boyc

181、ott prohibits business dealings with U.S.and other firms that do business with companies on the boycott list.Individual Arab League member governments decide whether,or to what extent,to implement boycotts against Israel through national laws or regulations.Enforcement of such boycotts varies widely

182、 among them.Some Arab League member governments,in particular Syria and Lebanon,have consistently maintained that only the Arab League as a whole can entirely revoke the boycott it called for.Other member governments support the view that adherence to a boycott of Israel is a matter of national disc

183、retion;thus,a number of governments have taken steps to dismantle various aspects of their national boycotts.The U.S.Government has on numerous occasions indicated to Arab League member governments that their officials attendance at periodic CBO meetings is not conducive to improving trade and inves

184、tment ties with the United States and within the region.Attendance of Arab League member government officials at CBO meetings varies;a number of governments have responded to U.S.officials that they only send representatives to CBO meetings in an observer capacity or to push for additional discretio

185、n in national enforcement of the CBO-drafted company boycott list.The current situation in individual Arab League members is as follows:ALGERIA:Algeria does not maintain diplomatic,cultural,or direct trade relations with Israel,although indirect trade reportedly takes place.The country has legislati

186、on in place that in general supports the Arab League boycott,but there are no specific provisions relating to the boycott and government enforcement of the primary aspect of the boycott is reportedly sporadic.Algeria appears not to enforce any element of the secondary or tertiary aspects of the boyc

187、ott.However,regulations issued by individual government agencies have at times banned contact with Israeli companies and entities,effectively barring the entry of Israeli products.COMOROS,DJIBOUTI,AND SOMALIA:None of these countries have taken steps to effectively enforce a boycott against Israel.EG

188、YPT:Egypt has not enforced any aspect of the boycott since 1980,pursuant to its peace treaty with Israel.In past years,Egypt has included boycott language drafted by the Arab League in documentation related to tenders funded by the Islamic Development Bank.IRAQ:As a matter of policy,Iraq does not ad

189、here to the Arab League boycott.Most Iraqi ministries and state-owned enterprises have agreed not to comply with or have rescinded regulations enforcing the boycott,following a 2009 Council of Ministers decision to cease boycott-related implementation practices.However,individual Iraqi Government of

190、ficials and ministries continue to violate that policy.As a result of U.S.Government engagement with the Iraqi Government,the overall number of boycott-related requests,FOREIGN TRADE BARRIERS|17 of which the U.S.Government is aware,issued by Iraqi entities declined slightly from 47 in 2019 to 37 in

191、2020;in 2021,the number rose slightly to 39.The Ministry of Healths procurement arm(Kimadia)was among the government entities that still issued boycott-related requests.Officials from the State Department,Commerce Department,and USTR continue to engage with their respective interlocutors to ensure I

192、raqi officials are committed to investigating instances of boycott-related language in contracts and tenders.JORDAN:Jordan formally ended its enforcement of any aspect of the boycott when it signed the Jordanian-Israeli peace treaty in 1994.Jordan signed a trade agreement with Israel in 1995 and lat

193、er an expanded trade agreement in 2004.While some elements of Jordanian society continue to oppose improving political and commercial ties with Israel as a matter of principle,government policy has sought to enhance bilateral commercial ties.LEBANON:Since June 1955,Lebanese law has prohibited all in

194、dividuals,companies,and organizations from directly or indirectly contracting with Israeli companies and individuals,or buying,selling,or acquiring in any way products produced in Israel.This prohibition is by all accounts widely adhered to in Lebanon.Ministry of Economy officials have reaffirmed th

195、e importance of the boycott in preventing Israeli economic penetration of Lebanese markets.LIBYA:Prior to its 2011 revolution,Libya did not maintain diplomatic relations with Israel and had a law in place mandating adherence to the Arab League boycott.The Qadhafi regime enforced the boycott and rout

196、inely inserted boycott-related language in contracts with foreign companies and maintained other restrictions on trade with Israel.The Libyan Government of National Accord has not articulated a stance on the Arab League boycott,and the status of pre-2011 revolution laws requiring local firms to comp

197、ly with the boycott is unclear.The United States will continue to monitor Libyas treatment of boycott-related issues.MAURITANIA:Mauritania does not enforce any aspect of the boycott despite freezing diplomatic relations with Israel in March 2009 in response to Israeli military engagement in Gaza.MOR

198、OCCO:Morocco agreed to normalize relations with Israel in August 2020.Morocco and Israel signed a Joint Declaration re-establishing diplomatic relations on December 22,2020.In January 2021,Morocco and Israel agreed to establish joint working groups to promote cooperation in a variety of areas,includ

199、ing investments,transportation,environment,energy,and tourism.Prior to the normalization agreement,Morocco did not enforce the boycott consistently.Moroccan law contained no specific references to the Arab League boycott and the government did not enforce any aspect of it.In recent years,Morocco rep

200、ortedly has been Israels third largest trading partner in the Arab world,after Jordan and Egypt.U.S.firms have not reported boycott-related obstacles to doing business in Morocco.Moroccan officials do not appear to attend CBO meetings.PALESTINIAN AUTHORITY:All foreign trade involving Palestinian pro

201、ducers and importers must be managed through Israeli authorities.The Palestinian Authority agreed not to enforce the boycott in a 1995 letter to the U.S.Government,and the Palestinian Authority has adhered to this commitment.Various groups in different countries that advocate for Palestinian interes

202、ts continue to call for boycotts and other actions aimed at restricting trade in goods produced in Israeli West Bank settlements.SUDAN:Sudan and Israel announced a normalization agreement in October 2020 that would include Sudan renouncing the boycott.In 2021,Sudan repealed the boycott,publishing th

203、e repeal in the Sudan Registry.This move ends Sudans official adherence to the boycott.18|FOREIGN TRADE BARRIERS SYRIA:Traditionally,Syria was diligent in implementing laws to enforce the Arab League boycott.The country maintained its own boycott-related list of firms,separate from the CBO list.Syri

204、as boycott practices have not had a substantive impact on U.S.businesses due to U.S.economic sanctions imposed on the country since 2004.The ongoing and serious political unrest within the country since 2011 has further reduced U.S.commercial interaction with Syria.TUNISIA:Upon the establishment of

205、limited diplomatic relations with Israel,Tunisia terminated its observance of the Arab League boycott.Since the 2011 Tunisian revolution,there has been no indication that Tunisian Government policy has changed with respect to the boycott.YEMEN:Although Yemen renounced observance of the secondary and

206、 tertiary aspects of the boycott in 1995,in the years since,Yemen has continued to enforce the primary boycott and certain aspects of the secondary and tertiary boycotts.Ongoing political turmoil in the country has made it impossible to ascertain current official Yemeni attitudes toward the boycott.

207、GULF COOPERATION COUNCIL:In September 1994,the Gulf Cooperation Council(GCC)member countries(Bahrain,Kuwait,Oman,Qatar,Saudi Arabia,and the United Arab Emirates)announced that they would no longer adhere to what they consider to be the secondary and tertiary aspects of the boycott,eliminating a sign

208、ificant trade barrier to U.S.firms.In December 1996,the GCC countries recognized the total dismantling of the boycott as a necessary step to advance peace and promote regional cooperation in the Middle East and North Africa.Despite this commitment to dismantle the boycott,commercial documentation co

209、ntaining boycott-related language continues on occasion to surface in certain GCC member countries and to impact business transactions.The situation in individual GCC member countries is as follows:Bahrain:In 2020,Bahrain agreed to normalize relations with Israel and expand already robust economic t

210、ies including establishing flights between the two countries.Bahrain participated in the September 15,2020,commemoration in Washington,D.C.of the Abraham Accords,and signed the Abraham Accords Declaration with the United States and the UAE.Unlike the UAE,Bahrain did not formally rescind the 1963 Isr

211、aeli Products Boycott Law,which remains listed in Bahrains Official Gazette.Responding to U.S.and international banks seeking legal certainty,the Central Bank of Bahrain issued a circular on August 30,2021,assuring banks that no legal restrictions prevent economic engagement with Israeli entities.In

212、itial reactions to the circular,which has not been publicized in the Official Gazette,from banking sector and other business community contacts were positive,with most expressing optimism that the new guidance addressed the concerns of legal ambiguity and clarified the removal of all Israeli Boycott

213、 Law restrictions.Since the official start of normalization in October 2020,Bahrain and Israel signed a joint communique and several sectoral memoranda of understanding,which were subsequently ratified by both governments legislative bodies.The Israeli prime minister became the first Israeli officia

214、l at that level to visit Bahrain in February 2022.Kuwait:Kuwait continues to recognize the 1994 GCC decision and no longer adheres to what they consider to be the secondary or tertiary aspects of the boycott.Kuwait claims to have eliminated all direct references to the boycott in procurement documen

215、tation as of 2000.Kuwait has a three-person boycott office,which is part of the General Administration for Customs.Although Kuwaiti officials reportedly regularly attend CBO meetings,Kuwait since 2016 has refrained from establishing barriers to trade,investment,or commerce that are directed against

216、U.S.persons operating or doing business in Israel,with Israeli entities,or in any territory controlled by Israel.FOREIGN TRADE BARRIERS|19 Oman:Boycott-related language rarely appears in tender documents,reflecting Omani Government officials professed commitment to ensuring that such language is not

217、 included in new tender documents.Officials have removed boycott-related language when the language is brought to their attention.Omani customs processes Israeli-origin shipments entering with Israeli customs documentation,although Omani firms typically avoid marketing consumer products that can be

218、identified as originating from Israel.Omans Ministry of Foreign Affairs prohibits its diplomatic missions from taking part in Arab League boycott meetings.Qatar:Qatar has a boycott law,but the extent to which the government enforces it is unclear.Although Qatar renounced implementation of the boycot

219、t of U.S.firms that do business in Israel(the secondary and tertiary boycott)in 1994,U.S.firms and their subsidiaries continue to report receiving boycott-related requests from public Qatari companies.In those instances,U.S.companies have made efforts to substitute alternative language.An Israeli tr

220、ade office opened in Qatar in May 1996,but Qatar ordered the closure of that office in January 2009 in protest against Israeli military action in Gaza.Despite this closure,Qatar continues to allow trade with Israel and allows Israelis to visit the country.Qatar permits the entry of Israeli business

221、travelers who obtain a visa in advance.The chief executive of Qatars successful 2022 World Cup bid has indicated that Israeli citizens would be welcome to attend the 2022 World Cup events.Saudi Arabia:Saudi Arabia,in recognition of the 1994 GCC decision,renounced enforcement of the secondary and ter

222、tiary boycott.Senior Saudi Government officials from relevant ministries have requested that U.S.officials keep them informed of any allegations that Saudi entities are seeking to enforce these aspects of the boycott.Saudi entities have expressed a willingness to substitute non-boycott-related langu

223、age in commercial documents.In 2018,Saudi Arabia permitted Air India to establish a direct flight from New Delhi to Tel Aviv that flies through Saudi airspace;this policy subsequently was extended to flights from all countries other than Saudi Arabia.The United Arab Emirates:In August 2020,the Unite

224、d Arab Emirates signed a normalization agreement with Israel.As part of its agreement,the Emirati Government issued a decree ending the UAEs adherence to the Arab League boycott.Since that announcement,the two countries have rapidly established commercial connections,opening direct trade,phone,mail,

225、banking,and passenger flight connections.The UAE has clarified to the U.S.Treasury Department that the August 2020 Decree confirms that there is no Emirati law or legislation that stipulates any boycott of Israel,its nationals,or its companies,and no Emirati law or legislation that requires a boycot

226、t of companies or individuals that do business with Israel,or imposes restrictions on other trading partners companies or individuals that do business with Israel.Prior to the normalization agreement,the UAE had been one of the leading sources of prohibited boycott requests.In 2021,there were 18 pro

227、hibited requests,down from 79 in 2019.The Department of State and interagency partners have engaged UAE officials in detail on the boycott repeal,with UAE officials unequivocally confirming that UAE participation in the boycott has been terminated.U.S.Government officials will continue to engage the

228、 UAE on the issue.FOREIGN TRADE BARRIERS|21 ARGENTINA TRADE AGREEMENTS The United StatesArgentina Trade and Investment Framework Agreement The United States and Argentina signed a Trade and Investment Framework Agreement(TIFA)on March 23,2016.This Agreement is the primary mechanism for discussions o

229、f trade and investment issues between the United States and Argentina.IMPORT POLICIES Tariffs and Taxes Tariffs Argentinas average Most-Favored-Nation(MFN)applied tariff rate was 13.4 percent in 2020(latest data available).Argentinas average MFN applied tariff rate was 10.3 percent for agricultural

230、products and 13.9 percent for non-agricultural products in 2020(latest data available).Argentina has bound 100 percent of its tariff lines in the WTO,with an average WTO bound tariff rate of 31.8 percent.Argentina is a founding member of the Southern Common Market(MERCOSUR),formed in 1991 that also

231、comprises Brazil,Paraguay,and Uruguay.MERCOSURs Common External Tariff(CET)ranges from zero percent to 35 percent ad valorem and averages 12.5 percent.MERCOSUR provisions allow its members to maintain a limited number of national and sectoral list exceptions to the CET for an established period.Arge

232、ntina is permitted to maintain a list of 100 exceptions to the CET,subject to renewal by MERCOSUR members.Modifications to MERCOSUR tariff rates are made through resolutions and are published on the MERCOSUR website.According to MERCOSUR procedures,any good imported into any member country(not inclu

233、ding free trade zones)is subject to the payment of the CET to that countrys customs authorities.If the product is then re-exported to another MERCOSUR country,the CET must be paid again to the second country.In 2010,MERCOSUR took a step toward the establishment of a customs union by approving a Comm

234、on Customs Code(CCC)and launching a plan to eliminate the double application of the CET within MERCOSUR.All MERCOSUR members must ratify the CCC for it to take effect.Only Argentina has done so;it ratified the CCC in November 2012.MERCOSUR members are also allowed to set import tariffs independently

235、 for some types of goods,including computer and telecommunications equipment,sugar,and some capital goods.Argentina imposes a 14 percent tariff on imports of capital goods that are also produced domestically.Imports of certain other capital goods that are not produced domestically are subject to a r

236、educed tariff of two percent.Argentina has bilateral agreements with Brazil and Uruguay to provide preferential treatment for automobiles and automotive parts.In October 2019,Argentina and Brazil submitted to the Latin American Integration Association a revised bilateral agreement to extend the time

237、 period to implement bilateral free trade in automobiles and automotive parts from June 20,2020 to July 1,2029.Argentina also has a separate bilateral trade agreement with Mexico regarding quotas for automobiles and automotive parts.In March 22|FOREIGN TRADE BARRIERS 2019,Argentina and Mexico agreed

238、 to retain quotas for three final years before implementing bilateral free trade in these goods.On November 15,2016,Argentina issued Decree No.1174/2016,which reduces by 25 percent import tariffs on used capital goods that are needed as part of investment projects.Complementary used capital and inte

239、rmediate industrial goods not more than 20 years old and for use in domestic production lines are also eligible for the 25 percent import tariff reduction.Taxes Argentina maintains a variety of taxes on,and tax exemptions for,imported goods.On December 23,2019,the Argentine Congress passed Public Em

240、ergency Law 27,541,raising to 3 percent the rate of the statistical tax,a fee charged on goods imported for consumption.Temporary imports,inputs used to produce goods for export,and imported goods for scientific and technological research are exempted from this tax.Pursuant to Decree 901/2021,the 3

241、percent statistical tax rate is extended until December 31,2024.Decree 332/2019 established caps for taxes on imported goods.Decree 99/2019 raised the caps by 20 percent as follows:imports with a value of less than$10,000 have a maximum tax of$180;imports between$10,000 and$100,000 have a maximum ta

242、x of$3,000;imports between$100,000 and$1,000,000 have a maximum tax of$30,000;and imports greater than$1,000,000 have a maximum tax of$150,000.Decree 1057/2020 extended these caps through December 31,2021.Pursuant to Decree 548/2019,in the case of capital goods imported exclusively for renewable ene

243、rgy projects included in the RenovAr Program,the maximum tax is set at$500.In August 2012,the Argentine Tax Authority(AFIP)issued Resolution 3373,which raised the rate of certain taxes charged after import duties are levied,thereby increasing the tax burden for importers.When goods are imported,Arge

244、ntina collects a percentage of the value of imports as income tax withholding to be applied to the importers income taxes.Resolution 3373 established an income tax withholding rate of six percent of the value of the imported goods for imports of all goods,except goods intended for the importers cons

245、umption or use.For those goods,an income tax withholding rate of 11 percent applies.Resolution 3373 also established an advance value-added tax(VAT)rate of 20 percent for imports of consumer goods and 10 percent for imports of capital goods.The advance VAT regime was most recently modified by Genera

246、l Resolution 4461 issued April 2019,which reestablished an advance VAT rate on imports for consumption and imports destined for production.The advance VAT is paid by the importer,unless the goods are for personal use.If the products are sold in Argentina,the normal VAT rate,which is 21 percent for m

247、ost consumer and capital goods,is levied after subtracting any advance VAT previously paid.In 2016,the Ministry of Production and the Ministry of Energy and Mining issued Joint Resolutions 123 and 313,providing tax exemptions for imports of capital and intermediate goods that are not locally produce

248、d for use in solar or wind energy investment projects that incorporate at least 60 percent local content in their electromechanical installations.In 2017,the Ministry of Production and the Ministry of Energy and Mining issued Joint Resolution 1-E/2017 updating the list of goods that are not locally

249、produced.The list can be found in Annex I and II to the Joint Resolution.In 2016,Argentina passed Law 27263,implemented by Resolution 599-E/2016,which provides tax credits to automotive manufacturers for the purchase of locally-produced automotive parts and accessories incorporated into specific typ

250、es of vehicles.The tax credits range from 4 percent to 15 percent of the value of the purchased parts.In 2018,Argentina issued Resolution 28/2018,simplifying the procedure for obtaining the tax credits.The resolution also establishes that if the national content of the automobile drops below the min

251、imum required by the resolution because of relative price changes due to exchange rate FOREIGN TRADE BARRIERS|23 fluctuations,automotive manufacturers will not be considered non-compliant with the regime.However,the resolution sets forth that tax benefits will be suspended for the quarter when the d

252、rop was registered.Pursuant to Decree 2646/2012,used capital goods imports are subject to a 28 percent tax if local production of the good exists,a 14 percent tax in the absence of existing local production,and a 6 percent tax if the used capital good is for the aircraft industry.There are exception

253、s for used capital goods employed in certain industries(e.g.,printing,textiles,mining,and,in some cases,aviation),which permit imports of the goods at a zero percent import tax.Argentina provides full or partial tax refunds(including VAT)to exporters of consumer goods,agricultural goods,industrial g

254、oods,and processed foods.In 2016,through Decree 1341,Argentina established an additional 0.5 percent VAT refund to exporters of products that are certified with geographic or origin indications;are certified as organic;or that meet quality and innovation standards that qualify the good to be labeled

255、“Argentine Food a Natural Choice.”These certifications and labels are granted by the Secretariat of Agroindustry,which maintains a list of qualifying agricultural products.In 2017,through Resolution 90-E,the Ministry of Agroindustry amended the scheme to prevent exporters from claiming multiple addi

256、tional 0.5 percent VAT refunds when a product meets more than one of the criteria listed above.Argentina last updated the list of goods eligible for the refund scheme and their associated refund percentages in 2018,through Decree 767/2018.Non-Tariff Barriers Import Bans Argentina prohibits the impor

257、t of many used capital goods.Under the ArgentinaBrazil Bilateral Automobile Pact,Argentina bans the import of used self-propelled agricultural machinery unless it is imported to be rebuilt in-country.Argentina also prohibits the importation and sale of used or retreaded tires(but in some cases allow

258、s remolded tires);used or refurbished medical equipment,including imaging equipment;and used automotive parts.Argentina generally restricts or prohibits the importation of any remanufactured good,such as remanufactured automotive parts,earthmoving equipment,medical equipment,and information and comm

259、unications technology products.In the case of remanufactured medical goods,imports are further restricted by the requirement(described below)that the importer of record must be the end user,such as a hospital,doctor,or clinic.These parties are generally not accustomed to importing and are not typica

260、lly registered as importers.Pursuant to Decree 509/2007,Annex 6,Argentina prohibits imports of used clothing.Import Restrictions Domestic legislation requires compliance with strict conditions on the entry of those used capital goods that are not prohibited from being imported into Argentina,as foll

261、ows:(1)used capital goods can only be imported directly by the end user;(2)overseas reconditioning of the goods is allowed only if performed by the original manufacturer and third-party technical appraisals are not permitted;(3)local reconditioning of the good is subject to technical appraisal to be

262、 performed only by the state-run Institute of Industrial Technology,except for aircraft-related items;(4)the imported used capital good cannot be transferred(sold or donated)for a period of four years;(5)regardless of where the reconditioning takes place,the Argentine Customs Authority requires the

263、presentation of a“Certificate of Import of Used Capital Goods”at the time of importation.This certificate is issued by the Secretariat of Foreign Trade following approval by the Secretariat of Industry.Pursuant to Joint Resolutions 12/2014 and 4/2014 of January 2014,the import certificate for used c

264、apital goods has a duration of 60 working days from the issue date.Through Decree 24|FOREIGN TRADE BARRIERS 406/2019,issued June 6,2019,the Argentine Government exempted a list of products from the requirement to obtain the import certificate.Resolution 909/1994 places restrictions on the importatio

265、n of certain used goods for consumption,such as parts and components that are not used in the manufacture of other products.Decree 1205,issued November 29,2016,modified the list of restricted items and established import tariffs ranging from 6 percent to 28 percent for some of these restricted items

266、.The list includes electronic and recording equipment;railroad vehicles and other railroad parts;optic,photography,and filming equipment;tractors;buses;aircraft;and ships.Resolution 253/2020 restricts imports of books to 500 units per month for a one-year period beginning September 15,2020.That poli

267、cy was extended through Resolution 868/2021,issued August 2021 and in effect indefinitely.Resolution 868/2021 also expanded these import restrictions to childrens picture books,drawing or coloring books,information brochures,and booklets.Under the“Por una Argentina Inclusiva y Solidaria”tax,all impo

268、rted services purchased through travel and tourism agencies and all international transportation tickets for travel by air,land(except to countries that border Argentina),or water sold in Argentina(through a physical or online point of sale)are subject to a 30 percent tax,pursuant to Public Emergenc

269、y Law 27,541,issued on December 23,2019,and Decree 99 issued on December 28,2019.Under Resolution 4815,as of September 16,2020,when international transportation tickets and international tourism services are sold in Argentina,an amount equal to 35 percent of the price of the ticket or service is col

270、lected as income tax withholding.Through Decree 99/2019,the government also established an 8 percent tax for some imported digital services that are already subject to the VAT.Import Licensing Argentina subjects imports to automatic or non-automatic licenses that are managed through the Comprehensiv

271、e Import Monitoring System(SIMI),established in December 2015 by AFIP through Resolutions 5/2015 and 3823/2015.The SIMI system requires importers to submit detailed information electronically about goods to be imported into Argentina,including whether the products are subject to automatic or non-aut

272、omatic import licenses.Once the information is submitted,relevant Argentine Government agencies review the application through a“Single Window System for Foreign Trade”.Products deemed import-sensitive by the Argentine Government,including goods such as automobiles,paper and cardboard,iron and steel

273、,nuclear reactors,electrical and construction materials and parts,toys,textiles and apparel,and footwear,are subject to the non-automatic import licensing regime.On January 9,2020,through Resolution 1/2020,Argentina moved 300 tariff lines from the automatic import licensing system to the non-automat

274、ic import licensing system.Since 2020,a total of 1,446 tariff lines are subject to non-automatic licenses.Through Resolution 1/2020,Argentina reduced the validity period for a non-automatic import license from 180 days to 90 days after approval.Firms in a variety of sectors report extensive delays a

275、nd rejections in the import license application process,making it difficult to supply manufacturing facilities and reach Argentine consumers.Firms have also reported a lack of transparency in information required to apply for import licenses and in the reasons for rejection,further increasing the un

276、predictability of doing business in Argentina.Customs Barriers and Trade Facilitation Argentina continues to use reference prices for goods that originate in,or are imported from,specified countries for customs valuation purposes.If a good is imported and the invoice price is lower than the FOREIGN

277、TRADE BARRIERS|25 reference price,Argentina requires importers to obtain an authenticated invoice.Argentina publishes a list of reference prices and covered countries.AFIP requires importers of apparel to obtain and apply special government-issued labels,in addition to standard garment labeling,in o

278、rder to receive customs clearance,a process that results in additional costs and delays in release of goods.Certificates of Origin Certificates of origin have been a key element in Argentine import procedures to enforce trade remedy measures,reference prices,and certain geographical restrictions.Arg

279、entina requires certificates of origin for certain categories of products,including certain organic chemicals,tires,bicycle parts,flat-rolled iron and steel,certain iron and steel tubes,air conditioning equipment,wood fiberboard,most fabrics(e.g.,wool,cotton,other vegetable),carpets,most textiles(e.

280、g.,knitted,crocheted),apparel,footwear,metal screws and bolts,furniture,toys and games,brooms,and brushes.To receive the MFN tariff rate,a U.S.products certificate of origin must be authenticated by an Argentine embassy or consulate,or carry a U.S.Chamber of Commerce seal.For products with many inte

281、rnal components,such as machinery,each individual part is often required to have a certificate notarized in its country of origin,which can be very burdensome.For goods subject to antidumping or safeguard measures,instead of requiring a certificate of origin,Resolution 60/2018 of the Ministry of Pro

282、duction and Labor requires a certification(a sworn declaration of non-preferential origin)that can be submitted online.The resolution also simplifies the process required to obtain a certificate of origin for most categories of products,with the exception of textiles and footwear.Consularization Shi

283、pments to Argentina require commercial invoices and packing lists to be legalized by the Argentine Consulate in the country of export.Consulates will only legalize a commercial document after it has been signed by a Chamber of Commerce that is recognized by the Consulate in their region.The consulat

284、e assesses a$200 fee per document for these consularization services.Ports of Entry Argentina restricts entry points for several classes of goods,including sensitive goods classified in 20 Harmonized Tariff Schedule chapters(e.g.,textiles;shoes;electrical machinery;iron,steel,metal,and other manufac

285、tured goods;and watches),through specialized customs procedures for these goods.Consumption Incentives The“Ahora 12”program,launched in October 2013,allows individuals to finance the purchase of certain domestically manufactured goods,ranging from clothing to toys to home appliances,in addition to d

286、omestic tourism,in monthly installments(originally 12 months)with certain credit cards without interest.On July 29,2019,the government expanded the program by adding small appliances,cosmetics,and self-care products,and increased the price limit for purchases of eyeglasses and motorcycles.The Argent

287、ine Government further extended the programs which now include Ahora 12,Ahora 18,and Ahora 3 y 6 through March 31,2021,through resolution 730/2020.The new resolution removed cellphones from the list and included some medical equipment(such as defibrillators and sterilization equipment),prescription

288、medicine,and some domestic services such as educational services(language and drama courses,among other,excluding educational services offered in schools and universities),personal care services(hairdressers,barber shops,and beauty salon services),and automobile and motorbike repair services.On July

289、 30,2021,the government extended the programs through January 31,2022 through resolution 753/2021,and created the Ahora 24 and Ahora 30 programs,which allow individuals to finance the 26|FOREIGN TRADE BARRIERS purchase of home appliances and construction materials.In January 2022,the government issu

290、ed Resolution 34/2022 to extend these programs,except for Ahora 30,until June 30,2022.SANITARY AND PHYTOSANITARY BARRIERS Live Cattle Argentina banned imports of U.S.cattle and beef products in 2002 due to purported concerns regarding bovine spongiform encephalopathy.In 2018,the market reopened to U

291、.S.beef.However,the market for U.S.cattle remains closed pending an audit of the U.S.animal health system by Argentina and negotiation of a sanitary certificate.Poultry Argentina does not allow imports of fresh,frozen,or chilled poultry,nor day-old chicks or hatching eggs from the United States due

292、to purported concerns over Highly Pathogenic Avian Influenza(HPAI)and virulent Newcastle Disease,and because Argentina does not recognize the U.S.sanitary inspection system as equivalent to the Argentine system.Over the past several years,the United States has provided Argentina with updates on the

293、status of HPAI in the United States and on the success of the U.S.Governments mitigation and eradication efforts.Most recently,the United States requested market access for day-old chicks and hatching eggs.The U.S.Department of Agricultures(USDA)Animal and Plant Health Inspection Service(APHIS)conti

294、nues to negotiate the sanitary requirements with Argentina.In addition,the United States requested that Argentina regionalize its restrictions related to HPAI in the event of future outbreaks,as recommended by the World Organization for Animal Health.The United States continues to engage with Argent

295、ina to resolve the market access issues for poultry.Pet Food with Ruminant Ingredients Market access for exports of U.S.pet food containing ruminant ingredients to Argentina has been pending for thirteen years.USDA and Argentine authorities engaged in 2021 to resolve outstanding technical issues.GOV

296、ERNMENT PROCUREMENT Argentine law establishes a national preference for local industry for most government procurement if the domestic suppliers tender is no more than five percent to seven percent higher than the foreign tender.The amount by which the domestic bid may exceed a foreign bid depends o

297、n the size of the domestic company making the bid.In May 2018,Argentina issued Law 27,437 giving additional priority to Argentine small and medium-sized enterprises and requiring that foreign companies that win a tender must subcontract domestic companies to cover 20 percent of the value of the work

298、.The preference applies to procurement by all government agencies,public utilities,and concessionaires.There is similar legislation at the provincial level.In September 2018,Argentina issued Decree 800/2018,which provides the regulatory framework for Law 27,437.In November 2016,Argentina passed a la

299、w No.27,328,which regulates public-private contracts.The law lowered regulatory barriers to foreign investment in public infrastructure projects with the aim of attracting more foreign direct investment.However,the law contains a“Buy Argentina”clause that mandates at least 33 percent local content f

300、or every public project.Argentina is not a Party to the WTO Agreement on Government Procurement,but has been an observer to the WTO Committee on Government Procurement since February 1997.FOREIGN TRADE BARRIERS|27 INTELLECTUAL PROPERTY PROTECTION Argentina remained on the Priority Watch List in the

301、2021 Special 301 Report.The situation for innovators in the pharmaceutical and agrochemical sectors presents significant challenges.First,the scope of patentable subject matter remains significantly restricted under Argentine law.Second,there is inadequate protection against unfair commercial use an

302、d unauthorized disclosure of undisclosed test and other data submitted to the Argentine Government in conjunction with its lengthy marketing approval process.In addition,the United States encourages Argentina to provide transparency and procedural fairness to all interested parties in connection wit

303、h potential recognition or protection of geographical indications,including in connection with trade agreement negotiations.Finally,a backlog continues for patent applications for pharmaceuticals and biosimilar products,resulting in unreasonable delays for these products.In addition,the absence of s

304、ustained enforcement efforts including under criminal laws sufficient to have a deterrent effect,coupled with judicial inefficiency and outdated intellectual property(IP)laws,diminishes the competitiveness of U.S.IP-intensive industries in Argentina.For example,“La Salada”continues to be one of Sout

305、h Americas largest black markets for counterfeit and pirated goods.The existing legislative regime and weak enforcement hinder the ability of rights holders,law enforcement,and prosecutors to halt,through legal action,the growth of illegal online markets.The United States will continue to monitor th

306、ese issues and engage Argentina on IP matters at large.SERVICES BARRIERS Audiovisual Services Argentina imposes restrictions on the showing,printing,and dubbing of foreign films in Argentina.The National Institute of Cinema and Audiovisual Arts taxes foreign films screened in local movie theaters.Di

307、stributors of foreign films in Argentina must pay screening fees that are calculated based on the number and geographical locations of theaters at which the films will be screened within Argentina.Films screened in 15 or fewer movie theaters are exempted.According to Resolution 1087/2019,which came

308、into force July 23,2019,all movie theaters must project at least one domestically produced film for the entirety of one week per quarter.The Media Law requires companies to produce advertising and publicity materials locally or to include 60 percent local content.The Media Law also establishes a 70

309、percent local production content requirement for companies with radio licenses.Additionally,the Media Law requires that 50 percent of the news and 30 percent of the music that is broadcast on the radio be of Argentine origin.In the case of private television operators,at least 60 percent of broadcas

310、t content must be of Argentine origin.Of that 60 percent,30 percent must be local news,and 10 percent to 30 percent must be local independent content.Express Delivery Pursuant to Decree 221/2019,consumers are subject to annual limits on the tax-free allowance on purchases.Consumers can purchase good

311、s valued at up to$50 per month tax free,with an annual tax-free limit of$600.If the monthly purchase total exceeds$50,the consumer must pay a 50 percent tax on the value above the$50 threshold.Non-commercial courier shipments with a value of$1,000 or less and a weight not greater than 50 kilograms a

312、re exempt from import licensing and other import requirements,subject to certain conditions,including an annual limit of five shipments per person.Due to significant import-related delays and lack of transparency,such as non-automatic import licenses,the express and postal channels are essential for

313、 electronic commerce.28|FOREIGN TRADE BARRIERS Argentina does not have a centralized platform for,and does not allow the use of,electronically produced air waybills,which would accelerate customs processing.Insurance Services The Argentine insurance regulator(SSN)imposes restrictions on reinsurance

314、supplied by foreign companies.Resolution 40422-E/2017 allows local insurance companies to place only up to 75 percent of the ceded premium with foreign reinsurance companies.The SSN requires that all investments and cash equivalents held by locally registered insurance companies be located in Argent

315、ina.In May 2019,the SSN issued Resolution 515,establishing that each insurance company must invest a minimum of 5 percent(to a maximum of 20 percent)of its portfolio for financing of small and medium-sized enterprises.Telecommunications Services 1n 1998,Argentina and the United States entered into t

316、he Agreement Concerning the Provision of Satellite Facilities and the Transmission and Reception of Signals to and from Satellites for the Provision of Satellite Services to Users in the United States of America and the Argentine Republic(Bilateral Satellite Agreement).The Bilateral Satellite Agreem

317、ent included the Protocol Concerning the Transmission and Reception of Signals from Satellites for the Provision of Direct-to-Home Satellite Services and Fixed-Satellite Services in the United States of America and the Argentine Republic,and was accompanied by an exchange of letters between the Unit

318、ed States Federal Communications Commission and the Argentina Ministry of Communications.In the Bilateral Satellite Agreement,Argentina committed that U.S.-licensed satellites will be permitted to provide service to,from,and within Argentina and that Argentina will ensure that any authorization need

319、ed for transmission of satellite services within Argentina shall be issued as efficiently and expeditiously as possible.In the exchange of letters,the Argentina Ministry of Communications stated the following regarding fixed-satellite services:“Given all the related internal processes,it usually tak

320、es approximately 30 days to issue a license.”U.S.stakeholders are concerned that,despite the existence of this Agreement,Argentina is not processing authorizations for fixed satellite services in a timely manner.As part of a set of measures adopted in 2020 intended to address economic issues created

321、 by the COVID-19 pandemic,the Argentine Government issued Decree 311/2020,which froze prices and prohibited the suspension of delinquent accounts for a number of information communication technology(ICT)services,including fixed and mobile telephone services,Internet access services,and pay televisio

322、n services,until August 31,2020.On August 21,2020,the Argentine Government issued Decree 690/2020,which extended the freeze on the prices for these ICT services until December 31,2021 and amended the Information and Communications Technologies Law to change the regulatory status of these ICT service

323、s to“essential and strategic public services”and therefore subject to additional regulation by the National Communications Agency(ENACOM),including full rate regulation and additional universal service obligations.On July 12,2021,ENACOM issued Resolution 862/2021,allowing for a five percent price in

324、crease for telecommunications services.The increase is well below the annual inflation rate in Argentina.Under the Media Law and the Telecommunications Law,Argentina maintains regulations that treat terrestrial-based providers(e.g.,cable providers)differently from satellite-based providers(e.g.,dire

325、ct-to-home satellite providers)in that only satellite-based providers are prohibited from bundling their services with other Internet and telecommunications services offered by terrestrial-based providers.Decree 1340/2016 has an exception allowing satellite television suppliers that already held lic

326、enses for information technology services to continue providing such services.However,the inconsistencies in the current legal framework create uncertainty in the market.FOREIGN TRADE BARRIERS|29 INVESTMENT BARRIERS Foreign Exchange and Capital Controls Since 2019,the Argentine Government and the Ce

327、ntral Bank have issued a series of decrees and norms regulating access to foreign exchange markets in order to mitigate the financial crisis.As of September 15,2020,pursuant to Communication A71067/2020,Argentine nationals and residents must limit purchases of foreign currency(or of goods and servic

328、es denominated in foreign currency)to no more than$200 per month.Individuals must receive Central Bank approval to purchase foreign currency in excess of the$200 quota.Purchases of goods or services abroad with credit and debit cards issued by Argentine banks count against the$200 monthly quota.Alth

329、ough no limit on credit or debit card purchases is imposed,if monthly expenditures surpass the$200 quota,the card owner will be prevented from purchasing foreign currency in Argentina for the number of months needed to cover the amount of excess spending.Also,the regulation prohibits individuals who

330、 receive government assistance and high-ranking government officials from purchasing foreign currency.Pursuant to Public Emergency Law 27,541,issued December 23,2019,all purchases denominated in foreign currency and individual expenses incurred abroad,in person or online,including international onli

331、ne purchases from Argentina,paid with credit or debit cards issued by Argentine banks,are subject to a 30 percent tax.AFIP Resolution 4815 imposes an additional 35 percent withholding tax that may be deducted from an individuals income or wealth tax obligation.Non-Argentine residents are required to

332、 obtain prior Central Bank approval to purchase more than$100 per month in foreign currency,except for certain bilateral or international organizations,institutions and agencies,diplomatic representation,and foreign tribunals.As of October 2019,Communication A6815 limits cash withdrawals made abroad

333、 with local debit cards to only foreign currency bank accounts owned by the client in Argentina.Pursuant to Communication A6823,cash advances made abroad from local credit cards are limited to a maximum of$50 per transaction.Companies and individuals will need to obtain prior clearance from the Central Bank before transferring funds abroad,including dividend payments or other distributions abroad,