Archive for the ‘APEC’ Category

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Proud of Our Progress in 2011, Determined to Do More in 2012

January 10, 2012

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

At the International Trade Administration (ITA), we measure our success by the positive impact we have on jobs, businesses and the growth of our economy.  That’s why I’m proud to say that ITA had a great year in 2011, one full of many noteworthy accomplishments. 

Just to name a few:

Under Secretary Sánchez with two of the 56 members of the largest education trade mission to Indonesia and Vietnam that took place in March 2011.

Under Secretary Sánchez with two of the 56 members of the largest education trade mission to Indonesia and Vietnam that took place in March 2011.

  • U.S. goods and services exports were up roughly 16 percent in the first nine months of 2011 — the latest data available — putting the United States on pace to achieving the President’s National Export Initiative goal of doubling U.S. exports by the end of 2014;
  • There were six record-breaking months of U.S. exports during the year;
  • President Obama signed three important trade agreements with Korea, Colombia and Panama, which will support tens of thousands of jobs for the American people and create an abundance of new opportunities for U.S. firms; and
  • The United States’ host year for the Asia-Pacific Economic Cooperation (APEC) Forum was a tremendous success, strengthening our economic ties with a critically important region of the world.

I could go on and on.  We’ve achieved a lot.  But, all of us at ITA know that there is much more work to do.  Too many people are still out of work.  Too many businesses are still struggling.  And, the fact remains that only 1 percent of American businesses export; of those that do, 58 percent export to just one market. 

So, there is incredible potential for U.S. businesses to be more involved in the international markets and bolster their bottom lines.  We at ITA are determined to help them achieve these goals.  As part of this effort, we will continue to have an unprecedented focus on key initiatives.  These include: 

  • Ensuring that U.S. businesses seize the incredible opportunities developing in emerging technologies like renewable energy, and emerging markets, such as Brazil and India;
  • Continuing to level the playing field for U.S. businesses in international markets by vigorously enforcing trade laws, advocating on behalf of qualified American firms for contracts with foreign governments, and empowering entrepreneurs with the tools they need to compete;
  • Training our foreign commercial services officers — in markets across the globe — so that they can begin promoting foreign direct investment into the United States as part of the new SelectUSA initiative, the first coordinated federal effort designed to attract capital from overseas to spur economic development on our shores; and
  • Supporting advanced manufacturing, a sector that’s historically been the heart of our economy and provided a ticket to the middle class.  By expanding the opportunities available to U.S. firms in overseas markets, we will continue to help manufacturing businesses here at home sell their products, strengthen their bottom lines and impact jobs.

With each and every action we take, we fully realize that our best success comes when we partner with stakeholders like the readers of International Trade Update; you are leaders from the private sector, academia and a wide-range of other fields, and have been critical to our success. 

That’s why, throughout 2012 and beyond, we look forward to working with you to help continue our nation’s economic recovery. 

That’s a New Year’s resolution we can all rally around.

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The ITA’s Work to Keep Americans Working: A Message from Under Secretary Francisco Sánchez

December 7, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

Our focus at the International Trade Administration is on supporting American jobs, creating new opportunities for U.S. businesses and strengthening our partnerships abroad to bolster our economy here at home.

Francisco Under Secretary of Commerce for International Trade

Francisco Under Secretary of Commerce for International Trade

As you’ll read in this issue of International Trade Update, we are working every day — from the community level to the international level — on behalf of the American people to achieve these goals. And, as we look out at the landscape, it’s clear that one area that will be a key to our economic future is the Asia-Pacific.

President Obama recently said that “there’s no region in the world that we consider more vital than the Asia-Pacific region. And, we want, on a whole range of issues, to be working with our partner countries around the Pacific Rim in order to enhance job growth, prosperity, and security for all of us.”

That’s why the recent Asia-Pacific Economic Cooperation forum held in Honolulu, Hawaii was so important. I was proud to participate in this conference with President Obama, Commerce Secretary John Bryson, a host of other Administration officials and Asia-Pacific leaders. And, it’s safe to say we all left energized by the incredible possibilities and opportunities.

The 21 APEC member economies represent 2.7 billion consumers and generate 55 percent of the world’s GDP. In fact, the region is home to six of our top ten trading partners. Despite these stunning numbers, however, there is room for even more growth.

As this year’s APEC host, the United States has worked to fulfill this promise, and a great deal of progress has occurred. For example, APEC leaders agreed in Honolulu to:

  • Help small and medium-sized businesses by establishing business ethics principles and simplifying the customs process to make it faster, easier and cheaper to trade goods;
  • Reduce tariffs and other barriers that hinder the global exchange of environmental goods, one of the world’s most promising sectors; and
  • Reform the regulatory environment to level the playing field, enhance transparency and lessen unnecessary burdens on businesses.

ITA has been a valuable asset to this work, and we look forward during the APEC 2012 Russia host year to building on these results to strengthen the economy worldwide, for both our partners and the United States.

We seek to do this in other ways as well.

For example, as you’ll read in this newsletter, the ITA’s U.S. and Foreign Commercial Service is helping businesses — like Amarr Garage Doors, which is featured in this month’s issue — sell their products and services in overseas markets.

I also was proud to join Secretary Bryson in announcing the Advisory Committee on Supply Chain Competitiveness to ensure that U.S. companies can ship their products efficiently and compete effectively in the global marketplace.

And, I continue to advocate for U.S. firms abroad. In November, I led a transportation infrastructure trade mission to Qatar and the United Arab Emirates, which have announced plans for hundreds of billions in new projects. I also headed a clean technology trade mission to India, which has set ambitious renewable energy goals to support its rapidly growing economy.

Through it all, those of us at ITA have been proud to give American businesses and workers new opportunities at this critically important time in our nation’s history. And, we are so happy to have partners around world helping us turn our plans into progress. This is important work.

As the President said in Honolulu, “behind all the different languages and some very long names, we all share the same hopes, the same struggles, and the same aspirations. And we’ve learned that we’re more likely to realize our aspirations when we pursue them together.”

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Making the Asia-Pacific Region a Top Priority for U.S. Trade

December 7, 2011

At the annual meeting of senior economic leaders from the 21 member economies of the Asia-Pacific Economic Cooperation forum held in Honolulu, Hawaii, this November, the United States reaffirmed its trade ties with the region and looked to pursue even more opportunities through the Trans-Pacific Partnership.

John Ward is a writer in the International Trade Administration’s Office of Public Affairs.

The Pacific Rim, which includes trading partners both large (China and Russia) and small (Brunei Darussalam), plays a vital part in the overall health of the U.S. economy and especially its export position. In 2010, the economies that make up the Asia-Pacific Economic Cooperation (APEC) forum, which includes 21 members from throughout the region, accounted for 61 percent of U.S. exports of goods ($775 billion) and more than 37 percent of U.S private services exports ($205 billion). About 5 million U.S. jobs are supported by these exports.

President Obama noted this economic reality when he spoke recently at the APEC Economic Leaders’ Meeting, which was held on November 13, 2011, in Honolulu, Hawaii. “The United States is, and always will be, a Pacific nation. Many of our top trading partners are in this region. This is where we sell most of our exports. … And since this is the world’s fastest growing region, the Asia Pacific [region] is key to achieving my goal of doubling U.S. exports.”

James McNerney, Jr., president and CEO of The Boeing Company (left) and President Barack Obama (right) at the APEC 2011 CEO Summit that was part of this year’s APEC events held in Honolulu, Hawaii (photo courtesy APEC)
James McNerney, Jr., president and CEO of The Boeing Company (left) and President Barack Obama (right) at the APEC 2011 CEO Summit that was part of this year’s APEC events held in Honolulu, Hawaii (photo courtesy APEC)

Ease of Doing Business

To enhance bilateral efforts already underway, the U.S. strategy to reach this goal in the Asia-Pacific region has been focused most recently on APEC. Established in 1989, APEC is the premier forum in the region to advance free and open trade and investment. As articulated in the organization’s 1994 Leaders’ declaration, the so-called Bogor Goals commit APEC to working toward building “a dynamic and harmonious Asia-Pacific community by championing free and open trade and investment, promoting and accelerating regional economic integration, encouraging economic and technical cooperation, enhancing human security, and facilitating a favorable and sustainable business environment.”

In order to make concrete progress toward its goals, APEC holds working meetings and workshops throughout the year. These often include private-sector participants and on such topics as standards, environmental goods, and electronic commerce.

In 2009, APEC launched its Ease of Doing Business Action Plan. It identified five priority areas for improving the business environment in APEC economies: (a) starting a business, (b) getting credit, (c) trading across borders, (d) enforcing contracts, and (e) dealing with permits. The action plan set an APEC-wide aspirational target to make it 25 percent cheaper, faster, and easier to do business within the APEC region by 2015, with an interim target of a 5 percent improvement by 2011.

APEC’s efforts are already meeting with success: According to a recent study conducted by APEC’s independent research unit, between 2009 and 2010 improvement in the five key areas was 2.8 percent, exceeding the organization’s benchmark of 2.5 percent, and putting it well on the way to achieving its interim goal for 2011.

Related: ITA’s Anti-Corruption Efforts at APEC

2011: U.S. Host Year

The annual APEC Economic Leaders’ Meeting was chaired this year by President Obama in Honolulu. It was the culminating event of a year-long series of meetings hosted by United States. At four main clusters of meetings during 2011, delegates from each of APEC’s 21 member economies participated in various committee meetings, workshops, and ministerial meetings, focusing on three main areas set forth by the United States in its role as the host economy: (a) strengthening regional economic integration and expanding trade, (b) expanding regulatory cooperation and advancing regulatory convergence, and (c) promoting green growth.

The United States also led broad initiatives at APEC this year, including ones on women and the economy, food security, travel facilitation, cross-border privacy rules, and good governance and business ethics. The Department of Commerce played a key role in all of the initiatives that were led, or supported, by the U.S. government.

Trans-Pacific Partnership

One development with far-reaching potentials for trade in the region was the announcement by leaders of the nine Trans-Pacific Partnership (TPP) countries of the broad outlines of the TPP agreement. TPP is intended to be a regional trade agreement. Unlike the voluntary nature of agreements negotiated among APEC members, commitments in the TPP will be binding.

TPP is currently being negotiated among the United States and eight other partners: Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. The United States announced its intention to undertake TPP negotiations in November 2009, and since 2010, nine rounds of negotiations have been held.

TPP addresses a range of issues not covered by past agreements in APEC. These include making regulatory systems of TPP countries more compatible and helping small and medium-sized enterprises (SMEs) to participate in the international marketplace. TPP countries are discussing elements for a labor chapter that will include commitments on labor rights protection and effective provisions on trade-related issues that would help to reinforce environmental protection.

The great potential that the TPP negotiations hold for the United States was noted by President Obama. “The TPP will boost our economies, lowering barriers to trade and investment, increasing exports, and creating more jobs for our people, which is my number-one priority. Along with our trade agreements with South Korea, Panama, and Colombia, the TPP will also help achieve my goal of doubling U.S. exports, which support millions of American jobs.”

Lynn Costa, Anita Ramasastry, and Kelsey Scheich of the ITA’s Market Access and Compliance unit assisted with this report.

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ITA’s Anti-Corruption Efforts at APEC

December 7, 2011

This post contains external links. Please review our external linking policy.

Lynn Costa is a senior trade development adviser in ITA’s Market Access and Compliance unit.

Corruption is a significant market access barrier for U.S. exporters. According to the World Bank, nearly $1 trillion is lost globally each year to corrupt activities. Small and medium-sized enterprises (SMEs) disproportionately bear the costs of corruption because they lack the bargaining power and influence to oppose requests for illegal payments and bribes. It has been estimated by the World Bank that 25 percent of the operating capital of a typical SME exporter is lost to corruption each year. This is a staggering amount that undermines innovation and inhibits company growth, employment, and export capability.

In an effort to put into place programs that will help eliminate corruption in the APEC economies, the Market Access and Compliance unit of the International Trade Administration (ITA) this year launched business ethics projects that focused on three sectors of special interest to SME exporters: medical devices, biopharmaceuticals, and construction. The result was a set of industry-specific ethics principles for business codes of ethics that were presented to the APEC ministers in Honolulu and subsequently endorsed by them. The next step will be the implementation of these business ethics principles over the next several years. This will be done thanks to a funding commitment made by APEC in response to ITA’s efforts in this area.

To read the full text, of the APEC ministers’ statement on open governance and ethical business practices, visit www.apec.org.

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APEC 2011: Twenty-One Markets, Unlimited Opportunities!

November 22, 2011

Stephen L. Green is a Commercial Officer on domestic assignment with the U.S. Export Assistance Center in Honolulu and has served with the International Trade Administration since 2000.

The United States just wrapped up their year of hosting  the Asia-Pacific Economic Cooperation(APEC) Summit and I was fortunate enough to be on hand in Hawaii for the finale. So, what’s left after the  Summit?  That is the burning question on the minds of all Hawaiian people as the largest event in the State’s history comes to a close.  Over the past week, dignitaries, officials, and business executives from APEC’s 21 member economies descended on Honolulu to discuss the path forward in expanding trade, investment, and economic growth in order to create employment and raise living standards across the region.  And, this was not just any group.  Combined, they represent 40 percent of the world’s population, 56 percent of global gross domestic product, and approximately 50 percent of international trade.  No, not just any group.  Rather, the world’s most powerful coalition of economies that have agreed upon promoting open trade and investment across a region spanning thousands of miles on both sides of the Pacific Ocean.  The United States, China, Japan, Russia, Canada, Mexico and 15 other major economies, they were all here in Honolulu last week.  What’s left after APEC?  I have plenty of answers.

Secretary Bryson presents a Certificate of Appreciation for Achievement in Trade to Lieutenant Governor Brian Schatz recognizing the State’s leadership in promoting the Hawaiian Islands as a destination for foreign travelers.

Secretary Bryson presents a Certificate of Appreciation for Achievement in Trade to Lieutenant Governor Brian Schatz recognizing the State’s leadership in promoting the Hawaiian Islands as a destination for foreign travelers.

For starters, Hawaii-based companies met new international business partners.  SKAI Ventures, one of our best clients, is now in deep discussions with a number of potential distributors met during APEC.  And, deals were done.  Sopogy, Inc., another one of our top clients, signed a memorandum of understanding with Sichuan Dongjia Investment Company outlining how this new partner will market Sopogy’s world-class micro concentrated solar power technology in China.  In addition to the business deals happening at APEC, the U.S. Department of Commerce’s senior leadership honored local businesses and brought the message of expanded exports to the local economy.  Recently-confirmed Secretary of Commerce John Bryson returned to his boyhood stomping grounds of Honolulu where he attended 7th grade at Kaimuki Middle School, this time for his first bilateral meetings with APEC counterparts on a range of trade and investment issues.  Secretary Bryson also presented two U.S. Department of Commerce Certificates of Appreciation for Achievement in Trade during his visit; one commending the Hawaii Pacific Export Council for its role in developing export opportunities for Hawaii-based companies and a second to Lieutenant Governor Brian Schatz recognizing the State’s leadership in achieving President Obama’s National Export Initiativegoals by promoting tourism in the Hawaiian Islands as a service export. 

Secretary Bryson presents a Certificate of Appreciation for Achievement in Trade to Hawaii Pacific Export Council (HPEC) Chairman Steve Craven commending HPEC’s role in developing export opportunities for Hawaii-based companies.

Secretary Bryson (center) presents a Certificate of Appreciation for Achievement in Trade to Hawaii Pacific Export Council (HPEC) Chairman Steve Craven commending HPEC’s role in developing export opportunities for Hawaii-based companies.

Our Under Secretary for International Trade Francisco Sánchez and Assistant Secretary for Market Access and Compliance Michael Camuñez with their Indonesian counterparts launched the first-ever U.S.-Indonesian Commercial Dialogue that will pay close attention to harmonizing standards in the energy sector.  And, Japan announced that it intends to join the 21st Century Trans-Pacific Partnership agreement that promises unprecedented opportunities for U.S. exporters doing business in the Asia-Pacific region.

The State of Hawaii has always been a surf-and-sand tropical paradise.  That won’t change after APEC but what APEC surely did is transform the Hawaiian Islands into an international commercial hub, where doing business beyond the reef is an everyday part of life.  Our office, the Hawaii U.S. Export Assistance Center, stands ready to make sure Hawaii companies take advantage of this new frontier.

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The Department of Commerce and FedEx Partner on the Global Buyers Initiative

November 22, 2011

Matt Kennedy is the Director of Strategic Partnerships in the U.S. Commercial Service, International Trade Administration, Department of Commerce

This past week at the annual Asia-Pacific Economic Cooperation (APEC) meeting, I had the honor of being  present as Secretary Bryson and COO and President, International of FedEx Express, Mr. Michael Ducker partnered in marking the commencement of the Global Buyers Initiative – a new program that aims to help expand U.S. exports abroad and create jobs here at home.

An expansion of our ever-valuable partnership with FedEx, the program will work to identify foreign importers who, while already adept in importation, may not be sourcing from U.S. companies and could benefit from doing so.  With the help of our domestic and international teams, we will reach out to these companies, work to connect them with U.S. suppliers, and extend to them the broad resources of the Commercial Service.

To advance the goals of the President’s National Export Initiative, we in the Commercial Service have been working to develop innovative, effective, and efficient ways to help U.S. companies expand their exports abroad.  With a current program, the New Market Exporter Initiative, we are focusing on supply.  With partners FedEx, the National Association of Manufacturers, the United States Postal Service, and UPS, we are working to identify U.S. companies that export their goods and services abroad, but to only one or two countries.  With much of the know-how already there, these companies—with the guidance and resources of the Commercial Service—are entering new markets and expanding their business.  The Global Buyers Initiative represents a ramping up of these efforts and an expansion of the strategy to the demand side: the international companies that are potential importers.

And while the strategy may be new, the goal is the same: expand exports, create jobs.  We are especially excited about the power of our new program to impact small businesses here at home.  By connecting with importers abroad, the Global Buyers Initiative will expand small firms’ reach into these key foreign markets and, in doing so, help grow this vital sector of our economy.   

We are excited to roll out the program this year in Canada, France, and Korea, focusing on NEI-priority markets, and have plans to expand it to Australia, Colombia, Japan, Mexico, Panama, and Singapore in the near future.  We are confident that with the help of this new initiative and the continuing hard work of our domestic and international teams and partners, American exports will be increased and American jobs will be created.

If you’re in the market for American-made products and want to participate in the Global Buyers Initiative you can reach us a spp@trade.gov.

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Expanding the Wine Trade in the Asia-Pacific Region

September 29, 2011

Jamie Ferman is an international trade specialist focusing on the consumer goods industry.

I have always loved my job.  Since 1999, I have worked in the Office of Consumer Goods in the Manufacturing and Services division of the International Trade Administration and have covered numerous industries, with a primary focus on toys.  But in January, I was asked to take on a special project for the U.S. host year of Asia-Pacific Economic Cooperation (APEC) to organize and implement the first meeting of the APEC Wine Regulatory Forum (WRF).  Last week in San Francisco, it all came together as one of the projects of the third Senior Officials Meeting.

Grapes in the Concannon Vineyard

Grapes in the Concannon Vineyard

With 110 wine regulators and industry representatives from 18 APEC economies, we discussed the sharing of best practices on wine certification, laboratory testing, and labeling.  We had 30 speakers from 13 different economies, with a major focus on encouraging economies to get involved with the international organizations that focus on wine, especially World Wine Trade Group, an informal group of government and industry representatives including the United States, Argentina, Australia, Canada, Chile, Georgia, New Zealand and South Africa which works to facilitate wine trade. 

APEC delegates tour the grape crusher at Concannan Vineyard

APEC delegates tour the grape crusher at Concannan Vineyard

In the past decade, wine trade in the 21-nation APEC region has grown significantly, accounting for 26 percent of all global trade in 2010, up from 21.8 percent in 2000.  More than one-fifth of APEC members’ global wine trade is conducted within the region, which has tripled to $3.6 billion in value over the last decade.

Given the importance of wine trade to some of our cosponsoring economies, Australia, Chile, New Zealand, and Peru, it is not surprising that our event drew some big names, like our key-note speaker, former World Trade Organization (WTO) Director-General and current New Zealand Ambassador to the U.S. Michael Moore.  In his remarks, Ambassador Moore noted that the APEC  wine trade, while quickly growing in significance, is burdened by different and sometimes conflicting regulatory requirements which are estimated to cost APEC economies and businesses approximately $1 billion USD per year.  Ambassador Moore also explained how New Zealand developed its wine industry from being small and domestically focused, to becoming a major international player by opening the market to imports and streamlining the regulations.

And yes, we did sample some of the best wine in California.  At the close of the first day, the event’s private-sector cosponsor, the Wine Institute, hosted a reception at the historic Ferry Terminal overlooking San Francisco Bay which featured wines from the Napa Valley Vintners Association.  After a regulators-only breakfast on the second day, we boarded a bus for the Livermore Valley and held our remaining sessions at the Concannon Vineyard and Winery. 

After agreeing in the Outcomes Statement to meet again to discuss critical issues like streamlining paper certifications for wine, which were documented and presented at the meeting by our U.S. regulatory partner, the Alcohol and Tobacco Tax Trade Bureau (TTB), we went on a tour and tasting of the Concannon wines.  The grapes were still about two weeks away from harvest, so we sampled them right off the vine.  We ended the day by a tour of the TTB wine testing lab in Walnut Creek, CA where scientists in white lab coats gave us a glimpse of the hard science behind their regulatory mandate. 

All in all, this assignment was one of the best I have had during my time at Commerce. I am especially thankful for the chance to work with Tom LaFaille, Director of International Trade Policy at the Wine Institute and to the great U.S. government APEC team led by Julia Doherty, from the U.S. Trade Representative and Jennifer Stradtman from the International Trade Administration.  

*****

The presentations and other key documents from the WRF including the Outcomes Statement are available on the Wine Institute’s website.

APEC was established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional economic blocs in other parts of the world.  It fosters growth and prosperity by facilitating economic cooperation and expanding trade and investment throughout the region.  APEC’s member economies today account for 55% of global gross domestic product, 61% of all U.S. export goods and 44% of world trade, and comprise a market of 2.7 billion consumers.

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Promoting Green Growth in APEC by Removing Barriers to Trade in Clean Energy Technologies

September 19, 2011

Ryan Mulholland is an International Trade Specialist within the International Trade Administration. His focus is renewable energy and energy efficiency.

In the decades ahead, millions of people will migrate from rural communities to the burgeoning urban centers of the Asia-Pacific. The new urban dwellers will demand electricity to help start business, power modern amenities, and promote a rising standard of living.

Already the 21 economies of APEC account for 40 percent of the world’s population and more than half (54%) of the world’s gross domestic product. The APEC economies account for an even larger share of the world’s energy consumption (60%), yet based on the region’s future growth the region will likely increase its proportion of the global energy demand in the coming decades and will likely be disproportionately affected by the adverse effects of climate change.

While daunting, the challenges presented by these facts represent an opportunity for the Asia-Pacific region. Working together, the 21 APEC economies could utilize their abundance of renewable energy potential and existing manufacturing capacity to become a leader in clean energy trade – particularly solar energy.

To help facilitate trade in solar energy technologies, the Office of the U.S. Trade Representative and  International Trade Administration, with funding from U.S. AID and Underwriters Laboratories (UL) and the support of the Solar Energy Industries Association (SEIA) and Intertek and the U.S. Department of Energy, hosted an APEC Conference on Facilitating Trade in Solar Technologies through Standards and Conformity Assessment.

The conference was part of APEC’s Senior Official’s Meeting in San Francisco and will be followed by a more specific conference in Chinese Taipei focused on performance and durability of solar photovoltaics. The results of the APEC Solar Technologies Survey were presented at this conference by Underwriters Laboratories, who led the organization of a survey completed by 15 of the 21 economies.  The survey laid out the regulatory landscape and other voluntary and mandatory measures being implemented for solar technologies in the APEC Region.

As Matthew McGuire, director of Commerce’s Office of Business Liaison noted during the conference, “rather than developing our solar industries separately, we must collaborate. These technologies are too important to our collective futures to not work together.”

The APEC accounts for nearly 90 percent of the world’s solar manufacturing capacity for photovoltaic cells and modules. The APEC region enjoys some of the best solar locations in the world. But much more can be done. Rather than developing solar industries separately with trade barriers erected to keep foreign products out, the APEC economies can capitalize on their existing advantages and become an example to the rest of the world.

Use of international standards, for example, could be adopted and aligned in the Asian Pacific. Greater acceptance of third-party certification among APEC economies is also a goal. These types of changes could facilitate trade and help to reduce the unnecessary costs associated with manufacturing products to different standards for different markets.

The San Francisco conference sought to address a simple truth: without quality performance standards, consumers of solar energy products must bet on unfamiliar technologies without knowing if they will work as promised. When a consumer’s initial exposure to solar energy is so important, the lack of performance standards can lead to the proliferation of illusory bargains where cheap products hide their high maintenance costs and short product life and ultimately could taint any future use of solar energy.

Several private sector participants took part in the conference, including Eric Hafter from Sharp Solar Energy Solutions and Keith Williams from Underwriters Laboratories. Schneider Electric, Dupont Photovoltaic Solutions, Western Renewables Group, Intertek, and Satcon Technology Corporation also took part in the conference.

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Sustainable Manufacturing is Big Business for one Small Business in Bozeman

May 19, 2011

Tim Truman is a Supervisory Public Affairs Specialist currently covering the APEC Senior Officials Meetings and other events in Big Sky, Montana.

This week we’ve been talking a lot about small business, competitiveness, supply chain issues, and growing a green business here in Big Sky, Montana with the 21 economies of the Asia Pacific Economic Cooperation, or APEC. One business here in Bozeman stands out above the others.

Under Secretary of Commerce for International Trade Francisco J. Sanchez speaks at the West Paw Design event.

Under Secretary of Commerce for International Trade Francisco J. Sanchez speaks at the West Paw Design event.

West Paw Design is a Bozeman, Montana-based manufacturer of high-quality beds, toys and apparel for dogs and cats. The people behind the company are proud to offer eco-friendly pet products that are made in the USA. Beginning with certified organic cat nip in 1996, West Paw Design has continually added healthy, safe and eco-friendly materials to its growing mix of pet products. By using fill made from reclaimed plastic bottles for its stuffed beds and toys, the company has diverted more than 5 million plastic bottles from landfills to date. In addition to the recycled, recyclable and organic materials that go into many products, West Paw Design is driven by a responsibility to make environmentally sound choices when it comes to its manufacturing facility and processes used each day.

Not just eco-friendly and environmentally conscious but also profitable and competitive as well. West Paw Design exports to 25 countries and their products are available in 3,000 pet specialty retail outlets and online at www.westpawdesign.com

Today Commerce Secretary Gary Locke visited West Paw Design along with many representatives from the APEC Small and Medium Enterprise Working Group to see how West Paw Design has made use of many government and local resources to achieve the success in becoming a regional leader in the field of sustainable manufacturing.

West Paw Design is a prime example of how small manufacturing companies can take advantage of local, state and federal resources offered at minimal cost to help them become sustainable, competitive and profitable. They currently employ 41 people and profits have grown more than 10  percent in the past year while employment grew 17 percent.

Just a few of the resources that West Paw Design has used include an SBA 504 loan to expand its building. The expansion project supported 29 local jobs and generated over $2.5 million in total economic benefit to the community. Additionally, when looking to expand into new export markets, West Paw Design made use of the U.S. Commercial Service’s network of products and experts to learn about managing risk, foreign duty rates and VAT charges.

This event is an opportunity for participating companies and policy makers to learn about the types of resources APEC economies have developed to help small and medium enterprises implement sustainable business practices.

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Ethics as a Competitive Advantage for APEC SMEs in the Global Supply Chain

May 17, 2011

Anita Ramasastry is a Senior Advisor to the Assistant Secretary of Commerce for Market Access and Compliance who focuses on anti-corruption in trade.

On Saturday May 14, more than 100 participants from the public and private sector – participated in an interactive seminar focused on the why small and medium-size enterprises, or SMEs  in the Asian Pacific Economic Cooperation (APEC) region can gain a competitive advantage through demonstrating a commitment to transparent, ethical business practices .   SMEs account for approximately 99% of businesses within the  21 economies of the APEC region and account for between 30 to 60% of GDP in individual economies.

Senior ethics and compliance officers from leading multinational corporations,  Warner Bros Entertainment, Best Buy, Boeing, ITT and Sealed Air, spoke about the risks they encounter with respect to corruption, bribery and conflicts of interest when doing business in global markets.   The panel described the changing legal landscape  internationally and the need for companies to comply with anti-bribery laws that prohibit illegal conduct wherever they do business. These laws include the U.S. Foreign Corrupt Practices Act and also the new UK Bribery Act., among others.

The panel explained  SMEs often serve many roles, acting as distributors, agents, suppliers, consultants, and service providers in their global supply chains,.  These experts noted  that their companies abide by high ethical standards and look for ethical business partners when operating in overseas locations.  They will often engage in due diligence to determine if an SME will be a trustworthy agent or partner. Each of the panelists noted that SMEs could gain a competitive advantage by demonstrating strong ethical practices and also transparency with respect to their operations and potential conflicts of interest.

They also noted that if a country was too risky and there were too many problems , they could go elsewhere.  Shelley Presser, a  Senior Vice President and Deputy General Counsel for Warner Bros noted that a film could be shot anywhere in the world.  He noted, for example that you could recreate any scene or landmark almost anywhere in the world.  

The workshop concluded with a discussion of a series of hypothetical dilemmas that multinationals encounter overseas.  What happens, for example, if a company’s local supplier wants to hire his or her brother-in-law for a contract?  What should companies do if an agent tells them that a government official has requested a trip to visit a plant as part of awarding a government contract?  What kinds of gifts is it okay to give to officials or business partners in other countries?  What happens if a customs officer asks for an extra payment to clear goods through a port?   Through an interactive discussion, SMEs learned about the types of activities that raise concern for multinationals, and also about the need to be proactive about alerting larger companies when problems arise. The takeaway:  SMEs  that take ethics seriously, will gain benefits, including the ability to associate with respected multinational companies

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