January 25, 2005

US ponders trade concessions to tsunami-hit nations

The United States is to consider easing trade restrictions on Asian nations reeling from a deadly tsunami atop financial and logistics aid, officials said on Monday.

The office of the US Trade Representative (USTR) said it is discussing several "trade initiatives" with trade ministers and Washington-based ambassadors of the disaster-hit countries.

The US Chamber of Commerce, the top business lobby representing more than three million organisations, has called for temporary tariff reductions on key products from the affected countries.

"Trade will be an important part of the US post-tsunami reconstruction effort," USTR spokeswoman Neena Moorjani said.

She said that to be effective, however, any trade relief should reflect "the needs of the countries" hit by the December 26 tsunami.

The undersea quake hit nearly a dozen nations around the Indian Ocean, including India, Indonesia, Sri Lanka and Thailand, and claimed at least 227,000 lives.

Based on the "needs and opportunities" identified in talks between the USTR and the affected nations, "we are working closely with other Government agencies, the US private sector and with Congress to develop responsive proposals that leverage available trade tools and initiatives," Moorjani said. No specific trade relief plans were identified.

US businesses, however, have bulked at possible tax cuts or tariff withdrawals that President George W. Bush's administration would made on textile and shrimp imports from affected countries.