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Blog Category: International Trade Administration

Trade Promotion Coordinating Committee Releases 2011 National Export Strategy: Powering the National Export Initiative to Congress

U.S. Commerce Secretary Gary Locke, on behalf of the Trade Promotion Coordinating Committee, today released to Congress the 2011 National Export Strategy: Powering the National Export Initiative (PDF). The report reinforces the importance of U.S. exports of goods and services, which in 2010 totaled $1.84 trillion, an increase of nearly 17% over 2009 levels, and supported more than 9 million jobs in the United States.

Starting with this report, the annual National Export Strategy will fill the essential role of tracking and measuring the federal government’s progress in implementing the NEI. The TPCC will assess new opportunities and seek new ways for its agencies to improve coordination and increase effectiveness.  The National Export Strategy identifies the four areas of focus during 2011:

  • Collaborating with states, metropolitan areas, and border communities to help U.S. companies successfully export around the globe;
  • Encouraging exports by U.S. companies selling technologies in high-growth sectors;
  • Ensuring better data and measurement of U.S. services sector exporting; and
  • Removing barriers to trade, including through passage of the South Korea, Colombia and Panama trade agreements.

Detroit, Michigan and Windsor, Canada: Intertwined through Manufacturing and Trade

Guest blog by Nicole Lamb-Hale, Assistant Secretary for Manufacturing and Services

Today, I joined members of the President’s Export Council (PEC), U.S. and Canadian officials and U.S. and Canadian businesses to discuss border trade opportunities and challenges between American and Canadian companies. Canada and the United States share a unique relationship = we share not only borders, but economies.

Canada and the United States’ economies are greatly intertwined. The two nations share the world’s largest and most comprehensive trading relationship, which supports millions of jobs in each country. However, Canada and the United States don’t simply trade goods with each other: we build things together and rely on each other’s markets to design and build products that compete in global markets.

In 2010, U.S. Exports to Canada were worth $249.1 billion, 19 percent of total U.S. exports. These exports include motor vehicles and parts, agricultural and construction machinery, computer equipment, iron and steel, basic chemicals and petroleum and coal products.  
The Administration will continue to work hard to help Michigan companies grow by breaking into foreign markets, increasing exports and creating jobs.
The simple fact is that the more American – and Michigan – companies export, the more they produce. The more they produce, the more workers they need. And that means jobs. Good paying jobs here at home.

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.

Growing Exports with the New Market Exporter Initiative

NAM President and CEO Jay Timmons tours Muscatine Foods in Iowa with the chairman of the company, Gage Kent.

Guest blog by Jay Timmons, president and CEO of the National Association of Manufacturers.

The National Association of Manufacturers (NAM) and the Department of Commerce are working together to achieve President Obama’s goal of doubling exports by 2014. The New Market Exporter Initiative (NMEI) will make it easier for manufacturers to identify new markets, find new customers for their products and grow their business.

Exports are a key part of any competitiveness agenda. Ninety-five percent of the world’s consumers live outside of the United States. With the right tools and resources, manufacturers can increase their exports and find new customers.

Many of these manufacturers don’t have the resources to conduct extensive research on new possible export markets. Small and medium-sized firms, for example, account for 95 percent of all exporters in the U.S., yet only about one-third of all exports. The NMEI helps small and medium-sized manufacturers that are currently exporting to one or two countries expand their export sales to new markets. 

U.S. Companies and Technology on Display at the 2011 Paris Air Show

Boeing 777

Guest Blog by Francisco Sanchez, Under Secretary of Commerce for International Trade

This week I have had the privilege of attending the 2011 Paris Air Show, the largest aerospace industry show in the world. Since arriving on Sunday, I’ve participated in numerous industry events, met with CEOs, governors, ministers, members of congress and association representatives.

Yesterday, I presided over the opening ceremony for the U.S. Pavilion with U.S. Secretary of Transportation Ray Lahood, Hawaii senator Daniel Inouye, Alabama senator Richard Shelby, and Secretary of the Air Force Michael Donley.  More than 200 U.S. companies are displaying their innovative and forward-thinking technology here.

The U.S. aerospace industry is a strategic contributor to the economy, national security, and technological innovation of the United States The industry contributed $78 billion in export sales to the U.S. economy in 2010 and is important to achieve the goals of the President’s export initiative.

The aerospace sector in the United States supports more jobs through exports than any other industry.

Earlier today I witnessed a signing ceremony between Boeing and Aeroflot, Russia’s state-owned airline. Aeroflot has ordered eight 777s valued at $2.1 billion, and the sales will support approximately 14,000 jobs in the United States.

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.

U.S., Mongolia Commit to Expand Bilateral Commercial Relations

President Tsakhiagiin Elbegdorj, Foreign Minister Zandanshatar, Secretary Locke at signing ceremony

Locke applauds historic Boeing aircraft deal

U.S. Secretary of Commerce Gary Locke and Mongolia’s President Tsakhiagiin Elbegdorj today announced agreements to expand cooperation on trade and economic issues, and support Mongolia’s aviation sector with technical assistance and training programs at a Blair House ceremony.

“Our trade relationship with Mongolia has deepened during the past several years,” Locke said. “We are pleased that U.S. exports to Mongolia have been increasing, and we look forward to continuing to work with President Elbegdorj and his government to strengthen our commercial ties.”

The Boeing Company also finalized a purchase agreement with MIAT Mongolian Airlines for one 767-300ER and two 737-800 aircraft valued at $245 million from The Boeing Company. This is the first direct purchase of Boeing aircraft by MIAT, and marks the first time in more than two decades that MIAT will extend its route network by purchasing Boeing airplanes instead of leasing them.

Locke and representatives from the United States Trade and Development Agency (USTDA) and the U.S. Department of Transportation’s Federal Aviation Administration (FAA) each signed agreements with Mongolian government and private sector officials promoting cooperation between the two nations.

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.