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Blog Category: Exports

Helping U.S. Manufacturers Expand Exports

Guest post by Suresh Kumar, Assistant Secretary for Trade and Director General of the U.S. and Foreign Commercial Service.

Today, I had the opportunity to travel to West Virginia to discuss progress on President Obama’s National Export Initiative (NEI) and the promotion of U.S. manufacturing exports. As many of you might know, the NEI, announced in 2010, aims to double U.S. exports by the end of 2014. I’m glad to report that the NEI is off to a good start. Exports last year comprised 12.5 percent of GDP, up from the 11.2 percent recorded in 2009. 

In West Virginia, exports of merchandise grew 34 percent in 2010 -- double the national growth rate of 17 percent for goods and services. Thus far for 2011, the U.S. remains on pace to achieve the NEI goal.

The NEI is critical because we need to get more U.S. companies to export so that we can bolster our economy and support new jobs here in America. Of America’s 30 million companies, less than 1 percent export, and of those that do, 58 percent only sell to one market. The NEI helps creates deep market linkages and connects innovation to the marketplace. It also works to inform U.S. companies of their export potential, and the U.S. Government and private sector services available to help them sell internationally. 

Export Assistance at Work  

The International Trade Administration’s U.S. Commercial Service (CS) of the U.S. Department of Commerce operates a global network of 108 U.S. offices and locations in more than 75 countries comprising more than 1,400 trade specialists that provides U.S. business comprehensive, soup to nuts service and programs

West Virginia is an excellent example of how CS counseling and collaboration with businesses and state and local governments is resulting in many export sales for U.S. companies. Last year, CS offices in West Virginia offices recorded 53 export successes totaling more than $11 million.

Resources for Aerospace Manufacturers and Their Suppliers

Shuttle Piggybacking on an Airplane

From the first thread of upholstery for seat cushions to the final gallon of paint for the exterior, American manufacturers, large and small, are contributing to the construction of an airplane. While many Americans see an airplane as one item, it is really a feat of modern engineering and planning with thousands of parts being assembled all across America to create the single airplane. In fact, according to a 2008 study by the U.S. Department of Commerce, aerospace supports more jobs through exports than any other industry.  The U.S. aerospace industry directly supports about 430,000 jobs and indirectly supports more than 700,000 additional jobs.

This week at the Paris Air Show, civil and military aircraft manufacturers and those engaged in the burgeoning space vehicle market will show off their products to buyers from all over the world. Selling internationally is vital for America to meet the President’s goal of doubling U.S. exports by 2015 in order to support millions of jobs. The aerospace industry contributed $78 billion in export sales to the U.S. economy in 2010.  The industry’s 2010 positive trade balance of $44 billion is the largest trade surplus of any manufacturing industry and came from exporting 42% of all aerospace production and 72% of civil aircraft and component production.

For manufacturers looking to break into this market, ITA has also worked with Boeing’s Supplier Management Office to produce a webinar for U.S. aerospace companies that discussed how to participate in Boeing’s global supply chain.  In addition, ITA organized a webinar with Airbus procurement officials and over 200 companies where Airbus officials discussed the company’s procurement strategy and how U.S. companies can become part of its supply chain.

For all manufacturers, ITA has the Manufacture America Initiative that connects U.S. manufacturers with resources to help them be more competitive in the global marketplace, regardless of market. Boeing has been an active participant in the Manufacture America Initiative for the aerospace industry and the MAS Aerospace Team website is full of resources and contacts for U.S. aerospace manufacturers and their suppliers.

Tariff Tool Demystifies U.S. Trade Agreements for Manufacturers

Guest blog by Justin Hoffmann, International Economist in the Office of Trade Policy Analysis.

Manufacturers who are looking to expand into new markets are often faced with myriad questions about tariffs and barriers to these new markets. Figuring out which products have what tariffs can be a very frustrating and time consuming process. That is why the International Trade Agency has developed a Free Trade Agreement Tariff Tool to help manufacturers quickly find the information they need.

For manufacturers, America’s Free Trade Agreement (FTA) partners can be an attractive markets because these negotiated agreements eliminate tariffs, remove non-tariff barriers, and secure non-discriminatory treatment for U.S. goods and services.

While these agreements bring many benefits for manufacturers, they can be confusing. For example, in the U.S.-Peru Trade Promotion Agreement, the tariff schedules alone for that agreement go on for nearly a thousand pages. If a manufacturer is dedicated enough to slog through the pages to find out where his specific product is in the tariff schedule, he will learn, for example, that the tariff charged on his product before the agreement went into effect is 20 percent. Additionally, after some further digging around the agreement text, the exporter would also learn that the tariff on his product “shall be removed in ten equal annual stages beginning on the date this Agreement enters into force, and such goods shall be duty-free, effective January 1 of year ten”.

It is pretty clear that these lengthy documents are crafted by trade negotiators and lawyers and are really not written for U.S. manufacturers who are simply trying to export their goods to new markets.

The good news is that the FTA Tariff Tool provides this information instantly and almost effortlessly.

See video
Download the video: 
Read the transcript: 
FTA Tariff Tool Transcript

Enhancing Trade in Latin America: Opening Opportunities

Sanchez on podium

Guest blog b y Francisco Sánchez, Under Secretary of Commerce for International Trade

Today I am honored to be speaking at the Association of American Chambers of Commerce at the Latin America Conference in Cartagena, Columbia. I shared with the hundreds of participants that the United States will continue its decades-long effort to increase economic integration throughout Latin America, including the passage and implementation of pending trade agreements with Colombia and Panama.

Latin America is our fastest-growing export market. The United States exports three times as much to Latin America as we do to China. We enjoy significant bilateral trading relationships with most of the countries in the region, and exports to these countries will soon support more than two million U.S. jobs.

Currently, 84 percent of U.S. trade within Latin America is covered by free trade agreements. Passage and implementation of new trade agreements with Colombia and Panama is an Obama administration priority for 2011, and are expected to support tens of thousands of jobs in America.

President Obama has made his commitment to the free trade agreements with Panama and Colombia clear because he believes that the future of the United States is inextricably bound to the future of the people of the Americas.

Panama is one of the fastest-growing economies in Latin America, expanding 6.2 percent in 2010, with similar annual growth forecast through 2015. Exports of U.S. goods to Colombia are expected to increase by more than $1.1 billion once the agreement is fully implemented.

Initiatives such as Pathways to Prosperity and the Americas Competitiveness Forum – two important programs supported by the Department of Commerce’s International Trade Administration – are critical to improving economic integration that will benefit every nation in the Western Hemisphere.

Trade between countries in the Western Hemisphere is important to all of us, supporting millions of jobs and bettering the lives of our people.

Expert Advice on Exporting from Successful Companies

As today’s trade numbers show, the appetite for American-made products abroad is growing rapidly. That’s why these five companies have made exporting part of their long-term growth strategy. They know that 95% of all consumers live outside the United States and therefore, the more markets they target, the more diversified their customer base will be. That strategy has served them well as they generally held up better during the recession than companies that didn't export.

But they also know some of the ups and downs for manufacturers just starting to export: concern about the language and cultural differences, not knowing where to start or how to make inroads into new markets, fear that foreign consumers won’t pay once the products leave the country.

And that’s why Jack Hollender, Dan Kleiman, Al Powers, Jason Speer and Terry Koehn agreed to share their experience. In the video below, each shares insight and expertise about getting started in exporting.

In addition to these wise words, the Department of Commerce’s National Export Initiative is designed to help more companies overcome these and other hurdles to exporting. To get their assistance, simply call 1-800-USA-TRADE or go online to Export.gov. Commerce Department experts will work with you to design and implement a market entry or expansion strategy, conduct an international search to find potential agents or distributors for your unique business and contact potential overseas businesses--all on your behalf. Many of these services are free or extremely low cost.

Commerce's Chief Economist: ESA Releases Report on 'U.S. Trade in Private Services'

Report on “U.S. Trade in Private Services.”

Guest blog post by the Department of Commerce's Chief Economist Mark Doms.

Today the Commerce Department and ESA released a brief report on “U.S. Trade in Private Services.” The report (PDF) shows that the United States has consistently run a record services trade surplus that is driving overall exports growth and topped half a trillion dollars in 2010.

Most of the time when you hear about trade, it is about trade in goods, in part because it is easier to wrap our minds around the idea of goods (pictures of large container ships help, and we often notice the markings on products that note where they were made).  However, the United States exports a sizable amount of services (non-tangible items of value, such as school tuition or an airplane ticket), and they are leading the way toward doubling U.S. exports in support of several million new jobs under President Obama’s National Export Initiative.

A few reasons why greater emphasis should be placed on our trade in services: 

  1. Services make up a big part of the economy: 80 percent or so depending on how you define it.
  2. In 2010, we exported over a half trillion dollars (wow) of services, an all-time high.
  3. The trade surplus in services in 2010 topped $526.6 billion. 
  4. Services jobs represent high-skill, high-wage jobs.
  5. From 2002-2008, our private services exports grew at an annual average rate of 11.1 percent.
  6. Many services are “tradable”, especially in today’s increasingly globalized world: legal services can be traded, computer services can be traded, engineering services, medical services, etc.
  7. Exports of services are likely to show continued growth, taking advantage of the skill of the U.S. workforce and supporting living-wage U.S. jobs. 

Cross-posted at ESA's blog.

U.S. Commerce Secretary Gary Locke Takes New Markets, New Jobs Export Tour to Los Angeles

Secretary Gary Locke Addresses Small Business Owners at APBO about the Resources that the Government is Providing to Connect Small- and Medium-sized Businesses with Foreign Buyers,

U.S. Commerce Secretary Gary Locke traveled to Los Angeles, Calif., today for the second stop of the New Markets, New Jobs small business outreach tour.  Joined by Los Angeles Mayor Antonio Villaraigosa and USC Marshall School of Business Dean James G. Ellis, Locke discussed the importance of exports to America’s economic recovery and job creation, and the resources that the government is providing to connect local small- and medium-sized businesses with foreign buyers, especially those from the Asia-Pacific markets, in order to help them sell more overseas and hire more at home.  

Announced on the one-year anniversary of President Obama’s National Export Initiative, New Markets, New Jobs is a year-long, interagency, multi-city outreach campaign designed to proactively bring government services to businesses across the country that are interested in exporting.  The tour was launched in Minneapolis in February, and will continue on to New Orleans, Louisiana in April and Wilmington, Delaware in May.

See video
Read the transcript: 
Exporting: A Personal Tale

Winning the Future Through Education and Commerce

Undersecretary Sanchez

Guest blog post by Francisco J. Sánchez who is Under Secretary for International Trade in the Commerce Department's International Trade Administration.

When we think about the vast work the Commerce Department does with exports, what do we picture? Food, perhaps. Textiles. Cutting-edge technologies. But what many don’t consider are the legions of international students who attend American colleges and universities. It might sound odd, but they are considered “exports.” Indeed, education plays a critical role in the work we do every day in the International Trade Administration.

That’s why I’m so pleased to announce that starting April 2, 2011, I will lead the largest education and services trade mission in the history of the U.S. Department of Commerce.  Accompanied by 56 U.S. colleges and universities, we will travel to Indonesia and Vietnam to expand U.S. educational opportunities for international students.

America is home to the best opportunities for higher education in the world.  More students come to the U.S. to study than any other country on the planet. International students’ tuition and living expenses alone brought almost $20 billion to the U.S. economy in the 2009-2010 academic year.

Our goals for this trip are extensive. Expanding U.S. educational opportunities for international students will have some direct benefits to our national economy.  By increasing domestic jobs and aiding innovation and research while strengthening our relations and ties abroad, the fact is that sharing our colleges with foreign-born students will make America that much more rich and robust.

Secretary Locke Kicks Off 'Compete to Win' Address Series in Columbus

Locke at podium with large projection screen behind him

U.S. Commerce Secretary Gary Locke traveled to Columbus, OH, today to deliver the keynote address at the 2011 Columbus Chamber of Commerce Annual Meeting.  This event launches Locke’s “Compete to Win” address series – an ongoing outreach effort to Chambers of Commerce across the country in which Locke will listen to the ideas and concerns of members of the business community and highlight Obama administration economic policies that are designed to spur growth and support job creation.

During his address, Locke highlighted President Obama’s plans to strengthen the economic recovery, create jobs, help businesses succeed, and position America to win the future by out-innovating, out-educating and out-building our global competition.  He specifically discussed the administration’s focus on infrastructure and research and development investments, tax code reform and export promotion as top priorities that will help American businesses become more innovative, more competitive and more successful.  Locke also talked about Columbus’ own regional economic development strategy, Columbus2020!, and how administration policies will support and complement this initiative.   
 
Locke is scheduled to address the Dallas Regional Chamber on March 8 and the Metropolitan Milwaukee Association of Commerce on April 12.  Remarks

New Investment by Embraer in Florida Creates New Opportunities and New Jobs

Participants in ribbon-cutting ceremony

Guest blog post by Francisco J. Sánchez, Under Secretary of Commerce for International Trade

Yesterday I was honored to participate in the opening ceremony for the new Embraer assembly facility in Melbourne, Florida. Embraer is a Brazilian manufacturer of commercial, general aviation, and defense aircraft, and this new plant will employ up to 200 people from the area.

The ceremony embodied what I believe in about the future:

  • Exports create jobs;
  • The key to the future of the American economy is international trade; and
  • Economic integration among the nations of the hemisphere is how all of us remain competitive in the face of rising global competition.

The aircraft assembled in the new facility symbolize the growth of the hemispheric market and represents how international trade brings the economies of the hemisphere closer to each other.

Brazil and the United States understand that hundreds of millions of new consumers are giving birth to a new global market that will demand quantity as well quality.  Quantity and quality almost define Embraer itself.

Defining the future, too, are the United States and Brazil, which is why President Obama will be travelling to Brazil next month.  The gathering of dignitaries yesterday in many ways can be looked upon as part of the President’s visit to Brazil, for it incorporates the spirit and intention of the journey.

The United States is also interested in launching an Aviation Cooperation Program with Brazil.  We see this as a way of elevating and deepening our relationships with the Brazilian government and industry. 

All of us should embrace Embraer’s decision to build this assembly plant in Florida.  It foreshadows the greater future that lies before us and Florida – and before the United States and Brazil as well.