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U.S. Auto Parts Firms Find Partners in Russia

April 25, 2012

Elena Mikalis is an International Trade Specialist in the Office of Transportation and Machinery within the Manufacturing and Services division of the International Trade Administration

This week Deputy Under Secretary Michelle O’Neill is leading a delegation of 12 auto parts and services companies to explore opportunities for sales to the burgeoning Russian auto industry. I am fortunate to be accompanying her and the 12 U.S. companies who are on the mission. We have completed two of our three stops in the mission, having left Samara today.

In 2011, vehicles sales in Russia grew 39 percent to 2.6 million units. U.S. auto components and parts manufacturers are well-positioned to help supply the growing Russian auto industry, which grew 98 percent from 2010 to 2011, reaching $125 million. In 2011, Russia imported almost $1.5 billion in U.S.-made components, parts, and finished motor vehicles, an increase of 75 percent from 2010.

Deputy Under Secretary Michelle O’Neill presents a certificate of recognition to Konstantin Avdeev, President and CEO of Triton-Import for their support of U.S. exporters of automotive spare parts.

The trade mission delegation participated in one-on-one meetings with potential business partners in Samara, have met with key Russian Government officials, and visited automotive assembly plants and component manufacturers in Russia’s automotive industry centers.

Deputy Under Secretary O’Neill launched the mission in Moscow by presenting Triton-Import, a Moscow-based automotive parts distributor, with the Commerce Department’s Certificate of Appreciation for Achievement in Trade. Triton-Import has helped U.S. companies export more than $50 million in automotive spare parts to the Russian market. “Triton-Import has been an important partner and friend to many U.S. small and medium-sized firms,” O’Neill said.

The trade mission advances President Obama’s National Export Initiative which aims to double U.S. exports by the end of 2014, supporting economic and job growth.

With more than 140 million consumers and a growing middle class, Russia remains one of the most promising markets for U.S. exporters. Sales of cars and trucks in Russia are currently growing at an annual rate of 30 percent. In 2010, Russian customers purchased 1.9 million cars. This figure includes 646,000 new Russian cars and 1.25 million foreign cars, both imported and produced in Russia. Importers forecast continued rapid growth of approximately 20 percent in 2011. If these trends continue, most experts project Russia will be the largest automotive market in Europe within the next few years.

Related: Auto Companies in Russia: Always Two Sides to a Story

Foreign automakers have taken notice of the Russian automotive market’s potential for growth and are building assembly plants to meet the increasing demand for high-quality automobiles. General Motors, for example, has a $335 million plant in Togliatti, a joint venture with Russian auto giant AvtoVaz. The mission participants will be touring this facility at the end of the week to round out their trip. Other major international producers, including Nissan, Toyota and Hyundai, have made significant investments in St. Petersburg and the surrounding Leningrad oblast, turning it into a new automotive assembly cluster.

U.S. mission participants are further encouraged by Russia’s recent invitation to join the World Trade Organization. Russia is expected to accept this invitation and formally join the WTO this summer. As a result, Russia has committed to reducing many of its tariffs on motor vehicles and parts — some of which run as high as 35 percent.

It’s an exciting time in the auto industry and Russia is a great market for U.S. auto parts and suppliers to find sales and partners.

Samara, the Detroit of Russia

Samara, formerly known as Kuybyshev, is one of the largest and most prominent regions in Russia. It is also referred as Region 63 and is situated in the south-eastern region of European Russia. Samara region is the administrative hub of the Samara oblast and is one of the most stable leaders of the national economy. Similar to Detroit, Samara is situated close to reliable transportation, has well developed infrastructure for manufacturing and access to parts and supplies.

Samara region is renowned across the world for its planes, cars, bearings, aluminum and cables. It is also the hub of the Russian space industry. Satellite launchers, unique aircraft engines and manual space crafts are produced in this region.

The Samara region is a hub of innovation and industrial development. It provides the essential environment required for innovative development. This includes, a significant industrial and scientific potential, availability of well-trained personnel and a well-established infrastructure of innovative activities. The obvious advantages of Samara region are the favorable business climate and the multidisciplinary structure of the industrial system.

Development of Samara Region’s automobile cluster is a priority in the development of the regional economy. Share of automotive industry in the regional industrial output amounts to more than 35%, in machine building – over 70%. The automobile cluster includes a large number of firms producing cars and car components, as well as providing transport services.

Samara Region is one of Russia’s the most significant transport hubs.

The share of automobile transportation in the total volume of transported freight is 43%. The extensive network of public paved roads covers 12,700 km (7,891.4 miles). The Moscow – Chelyabinsk federal highway crosses the crosses the region, with links to Kazakhstan, Central Asia and northern parts of Russia. 55 transport companies serve the region′s passenger and freight transport by region and Russia.

Railway transportation accounts for 22.8% of freight traffic. Samara Kuibyshevskaya Railway has the total length of 1,389 km (863 miles).

Posted in Commercial Service, Exporting, International Trade Administration, Manufacturing, Manufacturing and Services, National Export Initiative, Trade Missions, WTO | Tagged autos, Russia | 1 Comment »

TAKE-OFF! (traveling, that is) New Travel Indicators Website Launched

April 25, 2012

Iris Ferguson works in the Office of the Under Secretary within the International Trade Administration.

Spring is in the air, and we here at the International Trade Administration are busy coming up with fresh ideas.

Our latest creation is the launch of ITA’s first-ever travel indicators website. It comes just in time for the international Pow Wow show in L.A., where we’ve had lots of great conversations on boosting travel and tourism to and within the U.S.

The graph shows the number of B1/B2 visas issued in Fiscal Years 2009, 2010 and 2011 in China, Brazil, India and the remainder of visa-issuing posts worldwide.

What’s on this travel indicators site, you ask? Well, in addition to basic travel tips, it contains a set of 15 graphs that have tons of useful information for the travel and tourism industry and foreign visitors.

Ever wanted to know the average wait times at six major airports for international arrivals processing? Or wanted the latest on airline capacity in key markets? Well now you can check them out on our travel indicator website.
Of particular interest are the graphs on visa wait times. Visitors can see how the State Department’s recent initiatives to increase staff, extend interview hours, and expand facilities have dramatically decreased the time it takes to get a visa in key markets, like Brazil. Being able to see these average wait times in China, Brazil, and India is great news for international travelers looking to plan ahead.

We’re working to update this site monthly, so you’ll have the latest info coming in from the Departments of Commerce, State, and Homeland Security.

Go check it out for yourself!

Posted in Exporting, International Trade Administration, Services, Trade Data, Travel & Tourism | Tagged Pow Wow, travel indicators, visa processing | 1 Comment »

Travel Forecast Projects Increase in International Visitors between Four and Five Percent by 2016

April 25, 2012

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

Mark Brown is a Senior Market Research Analyst with the Office of Travel and Tourism Industries in the Manufacturing and Services division of the International Trade Administration

This week is a pretty exciting time for the travel and tourism industry. The U.S. Travel Association’s annual International Pow Wow trade show event, is taking place in Los Angeles and was the venue for Commerce Secretary John Bryson to release the 2012-2016 travel forecast. The U.S. Department of Commerce produces a semi-annual travel forecast, one in the spring to coincide with the Pow Wow event, and one in the fall to coincide with an annual travel industry marketing outlook event.

Our latest forecast shows that international traveler volume to the United States is expected to build on the two consecutive visitor volume records set in 2010 and 2011 and grow at a four percent to five percent rate from 2012 through 2016.

Under Secretary of Commerce for International Trade Francisco Sanchez cuts the ribbon to open Pow Wow 2012 with Travel and Tourism officials

When compared to the fall 2011 forecast, the spring 2012 forecast represents a further downward revision in visitor volume growth, and the fall had been revised downward compared to the spring 2011 forecast. These revisions reflect several factors, including 2011’s solid, but below-forecast performance, and the International Monetary Fund’s revision of economic conditions for many of the U.S. top visitor origin markets.

That’s the bad news. But the good news is that the forecast still projects solid growth in visitor volume over the 2012 to 2016 period…and at a level higher than the United Nations World Tourism Organization’s forecast for the world, which is between 3.5 percent and 3.8 percent annual growth over this period.

The current forecast for the USA also does not yet factor in the potential impact from the Travel Promotion Act of 2009 legislation, which was signed into law in March 2010. The law established the non-profit Corporation for Travel Promotion, now known as BrandUSA, and a funding mechanism to market the USA as a premier travel destination. BrandUSA just unveiled their marketing plan at the Los Angeles Pow Wow event. Their impact on travel to the USA would be above and beyond the Department’s forecast levels.

If the forecast holds true, visitor volume would grow from 62.3 million in 2011 to reach 65.4 million in 2012 and 76.6 million by 2016. This translates into total growth of 14.4 million additional visitors in 2016 compared to 2011, growth of 23% versus the 2011 level, and a compounded annual growth rate of 4.2 percent.

Related: TAKE-OFF! (traveling, that is) New Travel Indicators Website Launched
International Visitors to the U.S. Jumped 9 Percent in February 2012

Tourists from all world regions are forecast to grow over the five-year period, ranging from a low for the Caribbean (+9 percent), to a high for Asia (+49 percent), South America (+47 percent), and Africa (+47 percent). All but three of the top-40 visitor origin countries are forecast to grow from 2011 through 2016. Countries with the largest total growth percentages include China (+198 percent), Brazil (+70 percent), Argentina (+46 percent), Australia (+45 percent), Korea (+35 percent), and Venezuela (+35 percent).

It’s important to monitor the fast-growing markets, but what matters more are the largest-growth markets. The North America world region is forecast to account for the largest proportion of the total visitor growth of 14 million visitors (42 percent). Asia (25 percent), Western Europe (11 percent), and South America (13 percent) are expected to account for the bulk of the remaining 58 percent of total growth in visitor volume forecast in 2016 compared to 2011 actual volume.

The countries contributing the most to total growth by 2016 are Canada (additional 4.47 million visitors), China (2.16 additional visitors), Mexico (1.54 million additional visitors, Brazil (1.06 million additional visitors), and Australia (463 thousand additional visitors).

To learn more about the spring 2012 Travel and Tourism Forecast, visit www.trade.gov. To learn more about Commerce’s efforts to increase travel to the U.S., visit www.commerce.gov.

Posted in Competitiveness, Exporting, International Trade Administration, Services, Statistics, Trade Data, Travel & Tourism | Tagged BrandUSA, Pow Wow, travel forecast | Leave a Comment »

ITA is Doing Our Part to Promote Efficient Spending, Improve Efficiency

April 23, 2012

Jim Donahue serves as the Deputy Chief Financial Officer and has been with the International Trade Administration since 2001.

Even before the President issued Executive Order 13589 entitled Promoting Efficient Spending the International Trade Administration (ITA), and indeed, all of the Department of Commerce, had been on a mission to reduce spending in areas where savings could be generated without reducing program effectiveness.

Status report on ITA’s various categories of administrative savings

Thanks to suggestions and input from numerous ITA staff representing the entire agency ITA has been particularly successful in identifying potential areas where savings are possible and actually following through and capturing the savings. As the ITA administrative savings team ramped up and started generating successes the novelty of the project breed additional enthusiasm and momentum that became contagious throughout the organization.

The ITA savings target for fiscal year 2012 is $10 million and we are on schedule to hit the target. Unlike most federal actions, the savings that are contributing to the target are extraordinarily diverse in size and description. They range from a $4,100 savings associated with a redesigned car lease to $360,000 in rent savings by tightening our belts and improving our utilization of space within the Hoover Building here in Washington,D.C.

My personal favorite savings item is the $167,000 ITA saved by using office supplies left over from the 2010 decennial census. ITA staff pitched in this winter to coordinate the delivery and distribution of 50 boxes of pens, paper, files folders and other miscellaneous supplies that could be put to productive use in ITA.

Savings like these are not inconsequential. They save both precious money and reduce waste. Like every businesses around the country, these savings add up. And I am proud to tell you that these are just a few examples of how ITA is taking efficiency spending seriously – and there will be many more examples to come.

Posted in Finance, International Trade Administration | Tagged cost savings, efficiency | Leave a Comment »

Congressional Hearing in Pennsylvania Links Government Trade Resources to Small Business

April 10, 2012

Tipten Troidl has been working with the International Trade Administration for thirteen years. Currently, she is serving as the Acting Director for the Office of Legislative and Intergovernmental Affairs.

Small businesses are the backbone of the U.S. economy and we need them exporting in order to reach the President’s National Export Initiative (NEI) of doubling exports by the end of 2014.

On Monday, Joseph Hanley, the Regional Director for the U.S and Foreign Commercial Service testified in Pittsburgh [before the House Small Business Committee] on the “Impact of U.S. Trade Policies on Small Businesses and Manufacturing.” Joe represented the International Trade Administration before the House Small Business Committee’s Chairman Tipton (CO) and Ranking Member Critz (PA).

Hanley noted that ITA’s main objectives are to expand U.S. exports and to create jobs. The Commercial Service has 108 domestic offices around the country with three in Pennsylvania. The Pennsylvania U.S. Export Assistance Centers have provided 4,000 individual trade counseling sessions to over 1,000 Pennsylvania business in the past 1 ½ years. We are pleased to announce that because of these services 257 Pennsylvania companies have reported 688 export successes valued at more than $500 million to 91 different countries. More importantly, 62% of these companies have fewer than 100 employees.

Pennsylvania has a plethora of success stories.

Hanley told the Congressmen about RPM industries, a small business that manufactures pre-lubrication and fluid evacuation for diesel and gasoline engines. His team helped RPM Industries expand its export development strategy by having RPM participate in an overseas trade mission event, Trade Winds, to Brazil. Hanley happily reported that RPM Industries expects to have sold almost $1 million of its products to Brazil by the end of this year.

Joe also touched on other services that ITA provides to small businesses. ITA’s Petition Counseling and Analysis Unit provides antidumping/countervailing duty counseling. Their objective is to help U.S businesses understand U.S unfair trade laws in relation to dumping and foreign government subsidies. The work of this office not only levels the playing field for small U.S businesses but helps companies with the process of filing a petition for an investigation.

If you are a small or medium size business and you are interested in giving exporting a try, please reach out to any one of our U.S. Export Assistance Centers because someone like Joe is waiting to help you.

Posted in Commercial Service, Exporting, Import Administration, International Trade Administration, Manufacturing, National Export Initiative | Leave a Comment »

The Asia-Pacific: Important for America’s Economic Future

April 3, 2012

Francisco Sánchez is the Under Secretary of Commerce for International Trade

I’ve spent a lot of time as Under Secretary for International Trade focused on the Asia-Pacific region — and for good reason.

As President Barack Obama has said, “no market is more important to our economic future than the Asia-Pacific.”

He’s right.

The market represents 55 percent of global GDP and 44 percent of world trade. It’s also the fastest-growing region in the world, presenting incredible opportunities for U.S. businesses to sell more products that are “Made in America.”

Case in point: the recent deal in which Lion Air, an Indonesian airline, ordered 230 Boeing airplanes valued at more than $22 billion. It’s the largest commercial aircraft order in the history of the company, and its impact goes way beyond the numbers.

Under Secretary Sanchez in Tokyo, Japan March 2 as a keynote speaker at the Asia-Pacific Council of American Chambers of Commerce (APCAC) U.S.-Asia Business Summit.

This deal benefits all those who make and transport the parts that make up these aircraft. It helps the workers who assemble the planes. In short, it supports good-paying American jobs and benefits entire communities.

There is great potential for more U.S. businesses — both large and small — to have a similar impact, and I am determined to help fulfill this promise. During my tenure, I’ve probably spent more of my time abroad in the Asia-Pacific than any other area of the world.

For example, last year, I led the largest-ever higher-education mission to Indonesia. I also visited Hong Kong with 19 American businesses on a biotech mission. Our work in this region is a priority for us, and good things are happening.

U.S. goods exports to the broader Asia-Pacific totaled nearly $900 billion in 2011, a 15 percent increase from 2010. This is equal to 60 percent of total U.S. goods exports to the world.

These are positive signs, and as you’ll read in this International Trade Update, the Obama Administration is committed to building on this progress by opening new doors of opportunity for U.S. businesses.

One way is through policy. We are working to advance the Trans-Pacific Partnership, one of the most ambitious trade agreements ever crafted. It holds great potential for U.S. businesses to sell their products in a region with nearly three billion consumers, and we continue to talk with our TPP partners with the goal of finalizing the terms.

Another important policy milestone took place on March 15th, when the U.S. – Korea Trade Agreement took effect. I highlighted the importance of this development in publications like The Tampa Tribune. It will provide big benefits for U.S. businesses.

Before, in a variety of sectors, U.S. companies had to pay a tariff rate to sell their goods and services in Korea. Now, many of these same companies can enter the market duty-free. Almost 80 percent of American exports of industrial products to Korea will enter without getting taxed. Estimates are that this will lead to roughly $11 billion in additional U.S. exports. The trade agreement will also provide new opportunities in the 12th-largest economy in the world.

The International Trade Administration is committed to linking U.S. businesses with these and other opportunities throughout the Asia-Pacific.

Earlier this month, I was in Japan doing just this by advancing commercial relations. I gave a keynote address to the Asia-Pacific Council of American Chambers of Commerce, a group of 27 member-chambers from across the region.

These organizations are on the frontlines, working on the ground to help U.S. businesses succeed in a variety of markets. I pledged to work with them to “ensure that the next chapter in the U.S. – Asia story is better than any we’ve ever had, bringing new opportunities and prosperity to people across this region and back home.”

I also participated in the Asia-Pacific Business Outlook Conference, where U.S. businesses met with 16 of our Foreign Commercial Officers from the area to explore new possibilities for doing business abroad. It was a tremendous success and will go a long way in helping American companies succeed in the Asia-Pacific.

There is an old Chinese proverb: “Be not afraid of growing slowly; be afraid only of standing still.”

Despite the nearly 4 million private-sector American jobs created in the past 24 months, our nation can’t stand still. We can’t be satisfied.

Accordingly, ITA is committed to taking steps forward — both large and small — in the Asia-Pacific that will bring a more prosperous future for American workers, businesses and the overall economy.

Posted in APEC, International Trade Administration, International Trade Update, Korea-US Trade | Leave a Comment »

Thousands of Eyes Trained on Us

March 29, 2012

Cory Churches is a Communications Specialist with the Office of Public Affairs at the International Trade Administration

Social media channels such as Twitter, Facebook, LinkedIn, and this blog you’re reading now have become as ubiquitous as email, the Internet, and mobile devices. And these channels collectively connect us to all of you and you to one another.

Nearly three years ago, we launched this blog (April 23, 2009 to be exact) and our Twitter feed @TradeGov followed soon after. Our Facebook page http://facebook.com/tradegov took a bit more time to launch but now has 3,000 fans.

This week we achieved some milestones in our social media networks, reaching 5,000 followers and 1,000 tweets on Twitter, and nearly 300 entries on our blog with more than 1,200 comments. And just today we converted our Facebook page to timeline. Check it out!

Much of the information contained within our blog Tradeology comes from around the globe, written by Commercial Service officers serving in Manila, Philippines or in Fargo, North Dakota. We’ve covered major events such as the U.S. hosting of APEC in 2011 and the launch of the National Export Initiative as well as the Paris Air Show, and Pow Wow, travel and tourism’s largest global trade event.

Some of our best stories have been about clients and the success stories they’ve shared with us. These first person accounts of small and large businesses finding success in exporting show both the breadth of businesses going abroad and the depth of government services that support them in their endeavors.

Moving forward you will see more interaction from our office as well as from our Under Secretary Francisco Sánchez who recently launched his own Facebook page at http://www.facebook.com/TradeUnderSecretary.

We are looking forward to continuing the conversation we’ve started with you and enjoy your comments and feedback on our efforts to expand exporting to more businesses.

Posted in APEC, Exporting, International Trade Administration, National Export Initiative | Tagged Exporting, social media | 1 Comment »

China’s Economy Still Holds Good Opportunities for U.S. Firms

March 27, 2012

This story is part of an ongoing series highlighting the information available to participants in the 2012 Asia Pacific Business Outlook (APBO)

William Zarit is the Minister for Commercial Affairs, U.S. Embassy, Beijing, China.

I’m excited to be back again at the Asia Pacific Business Outlook. Yesterday, I discussed China’s country outlook. With the February visit of Chinese Vice President and heir apparent Xi Jinping, the state of U.S.-China relations is receiving a lot of attention from both countries as we continue to expand commercial activity. The success from the 22nd plenary meeting of the Joint Commission on Commerce and Trade (JCCT) last November will help boost U.S. exports and jobs, albeit incrementally.

At the JCCT, the Chinese eliminated some protectionist policies and made progress toward better enforcement of intellectual property rights in China.

Best Prospects

A number of obstacles still exist for U.S. firms doing business in China, including protectionism; high labor costs; duplicative, costly and slow certifications and approvals; a frequently unclear regulatory environment; and poor IPR enforcement. With China’s GDP growth projected to be at or above 7.5 percent through 2013, there is still potential for U.S. exports in many sectors, including:

clean energy
green building
renewable energy
water and water pollution treatment systems
travel and tourism
medical devices and healthcare
railroads and metro transit
aviation
information and communications technology
marine industries
agriculture; and
Chinese outbound foreign direct investment

Making Your Move in the China Market

U.S. companies need to take advantage of key trends in China such as massive urbanization, a growing middle class, U.S. export growth to 2nd and 3rd tier cities, and Chinese disposable income predicted to double in eight years. Also, almost 50 percent of the Chinese population is forecast to belong to the middle class by 2020.

Don’t Go It Alone in China – Visit the Commercial Service

The Commercial section in the Embassy is part of a global network of trade professionals dedicated to U.S. commercial interests worldwide. We connect U.S. business to opportunities in China. With almost 100 staff in five offices in China: Beijing, Shanghai, Guangzhou, Chengdu, and Shenyang, we also serve U.S. business in 14 second tier cities, working in partnership with the China Council for the Promotion of International Trade.

We can help in many ways, including:

finding distributors and agents for U.S. exports;
screening potential Chinese agents, distributors, and partners;
promoting your firm to target markets;
supporting multi-city U.S. government-led trade missions and trade shows;
and organizing and leading Chinese buying delegations to the U.S.

Go to www.export.gov/china to learn more about us and what we can do for your company in China.

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration | Tagged China, JCCT | Leave a Comment »

Asia Pacific Business Outlook: Twenty Five Years and Many More Opportunities

March 27, 2012

This story is part of an ongoing series highlighting the information available to participants in the 2012 Asia Pacific Business Outlook (APBO)

Francisco Sánchez is the Under Secretary of Commerce for International Trade

This is my second year keynoting the 25-year old USC Marshall School’s Asia Pacific Business Outlook (APBO) Conference. It was great to see the diversity of participants, from representatives of businesses across the United States, as well as non-profit organizations, chambers of commerce, and trade associations from both the United States and countries in Asia and Latin America.

Under Secretary of Commerce for International Trade Francisco Sánchez speaks during the APBO Conference (Photo USC Marshall School of Business)

It seems as though it’s also a reunion and convergence of sorts of 16 Senior Commercial Officers (SCOs) from Asia and local Commercial Service trade specialists. For the first time, we have the SCOs from Brazil and Russia joining the conference, contributing their insider knowledge and providing market briefings in one-on-one counseling sessions.

During my address yesterday, I was able to outline our ongoing priorities here at the International Trade Administration and across the Obama Administration as well as provide updates on some major accomplishments achieved in the past few years.

This month marks the two-year anniversary of the President’s National Export Initiative and good things are happening. Last year, U.S. exports surpassed $2 trillion for the first time in history. They supported nearly 10 million jobs, an increase of more than a million when compared to 2009 numbers. So the formula is pretty clear: exports benefit jobs, businesses and the national economy. That’s why we’ve got to continue to increase U.S. exports.

One of the areas with the greatest potential for this work is the Asia-Pacific region. It represents 55 percent of global GDP and accounts for 44 percent of world trade. And all of us at the Commerce Department are committed to keeping the U.S.- Asia-Pacific partnership growing — both through our words and our work.

Last year, I led the largest-ever higher-education mission to Indonesia and Vietnam. I visited Hong Kong and China last fall. And, earlier this month I was in Japan and Vietnam a second time to advance commercial relations. Our work in this region is a priority for us. And good things are happening.

U.S. goods exports to the broader Asia-Pacific totaled nearly $900 billion in 2011, a 15 percent increase from 2010. This is equal to 60 percent of total U.S. goods exports to the world. This partnership is generating benefits for all sides. This means jobs and growth for the American economy. In turn, U.S. products and services are helping to fuel the economic development in the Asia Pacific.

These have been win-win partnerships. Now, we’re focused on producing even more wins. To do this, the Administration is working from the policy level to the community level. For instance, one win came recently when the U.S.- Korea Trade Agreement took effect.

Before, in a variety of sectors, U.S. companies had to pay a tariff rate to sell their goods and services in Korea. Now, many of these same companies can enter the market duty-free. Almost 80 percent of American exports of industrial products to Korea will enter without getting taxed. Estimates are that this will lead to roughly $11 billion in additional U.S. exports. It will also provide new opportunities in the 12th largest economy in the world. That’s a big win.

Another win involves the Trans-Pacific Partnership. As many of you know, it’s an ambitious, high-standard trade agreement for doing business in the Asia-Pacific. It seeks to address new and emerging trade issues and 21st-century challenges. Working with our colleagues at the Office of the United States Trade Representative — we are addressing traditional trade issues involving goods and services; rules on intellectual property; and technical barriers to trade. And we are making progress. A TPP framework was agreed to in Honolulu at the APEC Leaders’ meeting in November. It was a landmark accomplishment. The agreement identified five central features that nations around the world are already viewing as a new standard for trade agreements.

The Commercial Officers from across Asia, Russia and Brazil as well as the domestic trade specialist stand ready to help U.S. businesses explore the possibilities that are out there. There were some great conversations today.
This is a chance to achieve common goals, such as creating more markets and customers for U.S. businesses, which can lead to more sales, which will boost U.S. exports, which supports jobs and strengthens the American economy. These are big goals that will make a big impact.

And I look forward to working with all of you in the years ahead to achieve these goals.

So let’s get the conversation started.

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, Korea-US Trade, National Export Initiative, Trade Shows and Trade Events | Tagged APBO 2012, APEC, jobs, TPP | Leave a Comment »

Trade Finance Guide: Now Online, with User-Friendly Features!

March 13, 2012

Natalie Soroka is an Economist on detail with Manufacturing and Services’ Trade and Project Finance Team, a part of the Office of Financial Services Industries.

Let’s face it, for a new exporter, figuring out trade finance options can be daunting. With so many options available it can be hard to know where to even start (just what is forfaiting, anyway?).

Luckily, the Commerce Department’s International Trade Administration publishes the Trade Finance Guide: A Quick Reference for U.S. Exporters. The Guide is designed to help U.S. companies, especially small and medium-sized businesses, learn the basic fundamentals of trade finance so that they can turn their export opportunities into actual sales and achieve every business’s ultimate goal: getting paid.

Until recently, the Trade Finance Guide was only available in print form (by order) or in a series of PDF files off of a variety of sites. However, now these concise chapters are available on the web, allowing you to click through the entire guide, or navigate to a specific chapter based on your personal interest.

Quick, easy-to-read chapters cover topics such as the various methods of payment available in international trade, export working capital financing, export credit insurance, and yes, forfaiting.

In addition to covering the basics, the guide also notes where to go for more information, training, and who to contact with questions about trade finance, the guide itself, and partners who collaborated with the Commerce Department in creating the Trade Finance Guide.

For more information, just check it out yourself! The most recent version of the Trade Finance Guide is available on export.gov, at http://www.export.gov/tradefinanceguide

Be sure to check back for updates, as the Guide is revised from time to time. Future editions will include new chapters that discuss other trade finance techniques and related topics.

Posted in Exporting, Finance, International Trade Administration, Services | Tagged trade finance guide | 1 Comment »

Tradeology, the ITA Blog

Archive for the ‘International Trade Administration’ Category

U.S. Auto Parts Firms Find Partners in Russia

TAKE-OFF! (traveling, that is) New Travel Indicators Website Launched

Travel Forecast Projects Increase in International Visitors between Four and Five Percent by 2016

ITA is Doing Our Part to Promote Efficient Spending, Improve Efficiency

Congressional Hearing in Pennsylvania Links Government Trade Resources to Small Business

The Asia-Pacific: Important for America’s Economic Future

China’s Economy Still Holds Good Opportunities for U.S. Firms

Asia Pacific Business Outlook: Twenty Five Years and Many More Opportunities

Trade Finance Guide: Now Online, with User-Friendly Features!

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