Archive for the ‘Manufacturing and Services’ Category

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U.S. Clean Energy and Energy Efficiency Trade Mission to Saudi Arabia

February 7, 2012

April 14–18, 2012
U.S. Clean Energy and Energy Efficiency Trade Mission to Saudi Arabia
Riyadh and Dhahran (Eastern Province), Saudi Arabia

In April, Assistant Secretary Nicole Lamb-Hale will lead a Clean Energy and Energy Efficiency Trade Mission to Saudi Arabia. The mission will include market briefings by industry experts, opportunities for U.S. firms to meet key Saudi Arabian government officials and decision-makers, hold one-on-one meetings with potential business partners, and enjoy networking events, with the goal of increasing U.S. exports in the clean energy and energy efficiency sectors.

SolarTAC test facility in Aurora, CO (Courtesy of DOE/NREL)

SolarTAC test facility in Aurora, CO (Courtesy of DOE/NREL)

The mission comes at a critical time for both Saudi Arabia and the U.S. clean energy and energy efficiency industry, and has the potential to create opportunities for U.S. exporters while helping Saudi Arabia to achieve its energy goals.

Saudi Arabia has ambitious plans to improve energy efficiency and reduce reliance on hydrocarbons for power generation.  These plans offer abundant opportunities for U.S. companies to export American technologies, products, and services. 

While Saudi Arabia possesses one-fifth of global oil reserves, it meets almost 60% of its domestic power needs from petroleum.  The eight to nine percent annual growth in domestic electricity demand – and thus domestic petroleum consumption –  cuts deeply into exports.  The Saudi Government heavily subsidizes domestically-used oil, which causes not only  reduced export income, but also has enormous opportunity costs as there is less feedstock for development of downstream petrochemical industries and the jobs that go with them. 

Saudi Arabia hopes to reduce by half the crude oil and natural gas it burns now to generate electricity, in part by developing solar power capacity, an area where it has clear climatological advantages. As part of its plan for reducing fossil fuel dependence, the Saudi Government aims to install 5 GW of solar power by 2020.

As Saudi Arabia expands its energy supply and integrates renewable energy, further investment will be required in grid modernization and smart grid technologies that enable utility management of variable energy sources. Firms participating in the trade mission will gain market insight, make industry contacts, solidify business strategies, and identify or advance specific projects, helping U.S. firms benefit from this growing market for their products as Saudi Arabia ramps up investment in the clean energy and energy efficiency sectors.

Both residential and industrial sectors contribute to increased electrical demand in Saudi Arabia.  Residential air conditioning consumes more than 50% of total power during Saudi Arabia’s long, hot summers.  Saudi Arabia plans to construct 1.65 million new homes over the next six years and will be looking closely at products, materials and technologies that reduce energy use and increase efficiency. 

Saudi Arabia also relies on desalination plants to produce 70% of its potable water, using as much as 1.5 million barrels per day of oil equivalent to do so; Saudi Arabia hopes to start up its first solar-powered desalination plant in 2013.

This mission will target a variety of sectors that could reduce the impact of residential and industrial electricity demand, including solar power generation components and systems; smart grid systems, software and services; green building design/engineering, materials and technologies; and energy efficiency systems and solutions.

The mission will begin in Riyadh and will include site visits and consultations in Dhahran (Eastern Province), including the King Abdullah City of Atomic and Renewable Energy, the Saudi Electricity Company and Saudi Aramco. The cost to participate in the trade mission ranges from $3,020 to $3,502 per company for one representative, depending on firm size. There is a $500 fee for an additional company participant. Expenses for travel, lodging, most meals and incidentals will be the responsibility of each mission participant.

Applications will be accepted on a rolling basis through March 1, 2012. Space is limited. For more information about the trade mission, visit the mission web site or contact Jen Derstine of Manufacturing and Services, tel.: (202) 482-3889; e-mail: jennifer.derstine@trade.gov, or James Fluker of the U.S. & Foreign Commercial Service, tel.: +966 (1) 488-3800; e-mail: james.fluker@trade.gov.

Useful resources:

ITA Saudi market research
Saudi Country Commercial Guide  
Archive recording of Saudi solar webinar

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The Manufacturing Council: A Public/Private Sector Partnership for Progress

January 20, 2012

Nicole Lamb-Hale is the Assistant Secretary for Manufacturing and Services within the International Trade Administration.

Every day, American manufacturers put together different parts to build great things. 

Assistant Secretary for Manufacturing and Services Nicole Y. Lamb-Hale (center) with Commerce Secretary John E. Bryson (second from right) and Under Secretary for International Trade Francisco Sánchez (right) meet with the Manufacturing Council

Assistant Secretary for Manufacturing and Services Nicole Y. Lamb-Hale (center) with Commerce Secretary John E. Bryson (second from right) and Under Secretary for International Trade Francisco Sánchez (right) meet with the Manufacturing Council

Today, at the Department of Commerce’s Manufacturing Council meeting, different partners from the public and private sectors came together to do big things.  Specifically, we gathered with a simple goal: to support U.S. manufacturers. 

Why is the manufacturing sector so important?  It’s because, historically, it has been a key to U.S. economic growth, provided a ticket to the middle-class for American workers, and been home to some of America’s greatest innovations. 

Looking ahead, as Secretary Bryson recently told the U.S. Chamber of Commerce, “without a strong manufacturing base, we can’t create enough good jobs to sustain a strong middle class. And without a strong middle class, we cannot be a strong country.”

This is why supporting U.S. manufacturers is a priority for President Obama, Secretary Bryson, Under Secretary Sánchez, and all of us at the International Trade Administration.  We are committed to the manufacturing comeback.  And, thankfully, good things are happening. 

334,000 manufacturing jobs have been created over the last two years.  In the third quarter of 2011, manufacturing profits were up more than 7 percent compared to the first quarter. 

At ITA, we are committed to keeping this momentum going.  We do this in a variety of ways. 

This includes:

  • Helping U.S. manufacturers reach new markets:

Only 1 percent of U.S. businesses export.  Of those that do, 58 percent export to only one market.  There is potential for U.S. manufacturers to do so much more. 

With efforts like the New Market Exporter Initiative, we are working with private sector partners — like the National Association of Manufacturers— to provide U.S. businesses with the support they need to reach new markets and new customers. 

  • Ensuring that U.S. manufacturers are competing on a level playing field:

American-made products represent quality.  All businesses need is a fair chance to sell their goods and services, and ITA is committed to giving them this equal opportunity.

We continue to enforce anti-dumping and countervailing duty laws.  In addition, whenever needed, our Advocacy Center is ready to reach out to foreign-governments to make the case on behalf of U.S. businesses.

  • Bringing customers to U.S. businesses:

At ITA, we know that in this 21st century economy, we’ve got to be creative in serving U.S. businesses.  With our International Buyers program, we administer a sort-of reverse trade mission initiative. 

Every year, the ITA brings over 10,000 pre-qualified international buyers to U.S. trade shows.  We want U.S. products in front of as many customers as possible.  Why? Because sales impact profits.  And, profits lead to jobs.   

We are doing this and so much more.  If your business needs help, I encourage you to go to export.gov and begin the process of selling your goods overseas — today.

On a personal note, helping U.S. businesses is important to me.  I’m from Detroit, which has a rich history of manufacturing.

 I’ve seen how these industries can impact communities and lives.  And, all of us at the Department of Commerce are committed to ensuring that these sectors have this positive impact for years to come.

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Travel and Tourism Gets a Presidential Boost

January 19, 2012
This post contains external links. Please review our external linking policy.

Michael Masserman is the Director of the Office of Advisory Committees within the Manufacturing and Services division of the International Trade Administration

The new travel and tourism advisory board with Commerce Secretary John Bryson

The new travel and tourism advisory board with Commerce Secretary John Bryson

Against the backdrop of Disney World, President Obama signed an executive order that will boost tourism to the United States and ultimately create jobs. The order will create, among other things, a Task Force on Travel and Competitiveness that will develop and deliver within 90 days a National Travel and Tourism Strategy that will help encourage international visitors to come to the United States. More than 47 million international visitors have arrived to see our sights, attend conferences, take family vacations, visit natural wonders, theme parks and experience what we have to offer. Developing a national tourism strategy and streamlining the visa process for non-immigrant visas will attract more tourists and create more jobs.

Commerce Secretary Bryson this week also welcomed the 32 members (19 of whom have never before served) of the re-chartered Travel and Tourism Advisory Board. The Board serves as the principal private sector advisory committee to the Secretary of Commerce on the U.S. travel and tourism industry.

As the new Board gets situated in their new role as advisors, they will be building on the foundation laid out by previous Boards. Originally chartered in 2003, the Board has been conferring and advising the Secretary on everything from revival of the Gulf Coast Region to recommendations on energy security and travel facilitation.

Members represent companies and organizations in the travel and tourism industry from a broad range of products and services, company sizes and geographic locations. Todd Davidson, CEO of Travel Oregon will serve as Chair and Sam Gilliand, Chairman and CEO of Sabre Holdings will serve as Vice-Chair. Both are returning members to the Board and will provide leadership in the activities of the new Board that will build on work of their predecessors.

The travel and tourism industry is a crucial part of the U.S. services economy whose strength and growth is essential to the economic health of our nation. Travel and tourism is a $1.2 trillion sector of the U.S. economy or nearly three percent of Gross Domestic Product. Critical to the nation’s overall economic health, the travel and tourism industry is one of the top employers for more than half of the U.S. states and territories.

The U.S. travel and tourism industry is on pace for a record-setting year. Through November 2011, international visitors spent an estimated $139.4 billion on U.S. travel and tourism-related goods and services year to date, an increase of 13 percent compared to the same period in 2010. The United States recorded a $38.4 billion trade surplus for travel and tourism through November 2011.

There is no denying that the health of the travel and tourism industry impacts millions of Americans nation-wide and the council of these 32 advisors will play a significant role in ensuring that Brazilian, Chinese, and Indian travelers come see America!

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Made in America Means More Export Sales for Manufacturers

December 14, 2011
This post contains external links. Please review our external linking policy.

Nicole Lamb-Hale is the Assistant Secretary for Manufacturing and Services within the International Trade Administration.

“Made in America” is something we should strive to see stamped on products sold not only at home but abroad as well. Exporting goods has become an essential tool for U.S. manufacturers today as we look to jumpstart our economy through the success of American businesses.

As a Midwesterner, I grew up with an appreciation for the manufacturing industry, which is why I am excited to share with you a recent opinion article I wrote, and was posted here. Many businesses are unaware of the great sales opportunities overseas that spur growth and job creation back in the U.S. and that exporting can be beneficial for businesses of all sizes.  In fact 95 percent of the world’s consumers reside beyond our borders and many foreign markets are currently growing exponentially.

In my article I tell the story of a Schaumburg, Illinois business man who had the foresight to diversify both his product offerings and markets. By exporting his American made products to international markets he was able to save and rejuvenate his family’s business. President Obama and the International Trade Administration (ITA) are dedicated to helping businesses prosper and create jobs at home by opening new avenues for international exportation. Through the facilitation of new trade agreements, market research, match-making and other services ITA is working to make U.S. manufacturers successful exporters.

I hope you will take a moment to read about one of many success stories here at ITA, and share yours with us.

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Meeting the Challenge of Supply Chain Infrastructure Competitiveness

December 7, 2011

With the recent announcement of a new advisory committee on supply chain competitiveness, the Department of Commerce is looking to work closely with U.S. industry to identify ways of improving the movement of goods.

Russell Adise is an international trade specialist in the International Trade Administration’s Manufacturing and Services unit.

An important step in assuring the integrity of U.S. supply chain infrastructure was taken on November 3, 2011, when Secretary of Commerce John Bryson and Francisco Sánchez, under secretary of commerce for international trade, announced the establishment of the Advisory Committee on Supply Chain Competitiveness. Through this committee, the secretary of commerce will receive guidance and input from supply-chain firms and associations, stakeholders, community organizations, and others directly affected by the supply chain, as well as experts from academia, from throughout the United States on the development and administration of programs and policies to expand U.S. export growth and foster the competitiveness of U.S. supply chains in the domestic and global economy.

Bayonne, New Jersey port looking over New York City and the Statue of Liberty (photo courtesy istock/Janine Lamontagne

Bayonne, New Jersey port looking over New York City and the Statue of Liberty (photo courtesy istock/Janine Lamontagne)

Crucial Link in Trade

U.S. supply chains are a crucial link between the country’s exporters and the global economy. Every export, and every export-related job, is dependent on the operations and processes that comprise the nation’s supply chains, from material sourcing, to product manufacturing, to consumer delivery. U.S. export competitiveness depends on the smooth, seamless, and rapid movement of goods through the supply chains from beginning to end. Any chokepoint can result in missed exports, lost sales, higher costs, and lost jobs.

The declining state of U.S. infrastructure has become an increasing challenge to exporters. Systemic, long-term infrastructure deficiencies have a dramatic, negative impact on the speed and predictability of the movements of goods around the country. Shippers blame this situation on the lack of a comprehensive national freight infrastructure development and investment policy. They also assert that the United States is not improving its infrastructure fast enough to keep pace with the export demands of 21st century supply chains.

These infrastructure deficiencies pose challenges not only to individual exporters, but also to the success of the National Export Initiative, a federal initiative established by President Barack Obama in 2010 to achieve his goal of doubling U.S. exports by the end of 2014.

Regional Outreach

The advisory committee is a key piece of a larger Department effort to address the challenges of supply chain infrastructure, organized by the International Trade Administration’s Office of Service Industries, a part of ITA’s Manufacturing and Services unit. In 2010, ITA spearheaded the creation of the Competitive Supply Chain Infrastructure Initiative. This brings together federal and private-sector stakeholders to develop policies that will improve the efficiency and connectivity of U.S. supply chain infrastructure. As part of the initiative, then-Secretary of Commerce Gary Locke and Secretary of Transportation Ray LaHood signed a memorandum of understanding in April 2010.  It committed the two agencies to undertake a series of freight stakeholder outreach forums. Since September 2010, five such events have been held throughout the country: in Atlanta, Georgia; Chicago, Illinois; San Diego, California; Kansas City, Missouri; and Seattle, Washington. These have allowed the two federal agencies to widen their knowledge of each region’s top freight infrastructure issues. Additional events are planned for 2012.

How to Apply

U.S. citizens engaged in international trade or supply chain competitiveness issues are eligible to apply to be members of the new Advisory Committee on Supply Chain Competitiveness. Nominations must be received by December 14, 2011. For more information, see the notice published in the Federal Register at 76 FR 68159 or contact Richard Boll of the International Trade Administration, tel. (202) 482-1135; e-mail: richard.boll@trade.gov.

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Cross-Border Services Trade Data Available for 2010

November 22, 2011

David Moore is an economist in the Office of Trade and Industry Information within the International Trade Administration.

We talk a great deal about exports of goods, however, private services-producing industries have become an increasingly important share of the U.S. economy, rising from 48 percent of GDP in 1947 to nearly 69 percent in 2010. The largest growth sector over this period have been the finance, insurance, and real estate (FIRE) sector which rose from nearly 11 percent of GDP in 1947 to more than 21 percent in 2010. Professional and business services have also risen from just 3 percent of GDP in 1947 to more than 12 percent of GDP in 2010.

Services Trends as a Percent of GDP: 1947-2010.

From 1947 to 2010, the services sector’s share of GDP has risen from 48 percent to nearly 69 percent.

From 1947 to 2010, the services sector’s share of GDP has risen from 48 percent to nearly 69 percent.

Indeed, the casual observer wouldn’t be inaccurate in concluding that the U.S. is a post-industrial, services based economy. However, it’s only relatively recently that services have become an important source of export growth as well as these services that are integral to the U.S. economy are increasingly sought out by foreign buyers overseas. In the October 2011 Survey of Current Business, the Bureau of Economic Analysis has released the latest data for services in their article “U.S. International Services: Cross-Border Trade in 2010 and Services Supplied through Affiliates in 2009.” This report shows that in 2010, the U.S. sold a record $530.3 billion in services to the world, up 8.7 percent from the $487.9 billion exported in 2009.

Cross-Border U.S. Services Trade reached an all-time high in 2010

Cross-Border U.S. Services Trade reached an all-time high in 2010

In fact, as shown in the chart to the left, the U.S. is running a significant surplus in services trade. While the U.S. exported $530.3 billion in services in 2010, U.S. services imports totaled only $368.0 billion, causing the U.S. trade surplus in services to total $162.2 billion. When comparing these services numbers and trends with the U.S. deficit on trade in goods (which climbed to $645.9 billion in 2010), the United States has consistently generated a surplus in services trade, a noteworthy detail for those businesses that want to grow their service opportunities outside the United States.

The latest presentation on U.S. Trade in Services prepared by the Office of Trade and Industry Information is on our website.

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Online Toolkit Helps U.S. Manufacturers Go Green

November 1, 2011

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

The Sustainable Manufacturing Toolkit, a new, free online resource developed with input from the International Trade Administration, can help U.S. businesses measure their environmental performance and thereby become more competitive.

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

This start-up guide is part of the new Sustainable Manufacturing Toolkit, an online resource created with input from the International Trade Administration.

This start-up guide is part of the new Sustainable Manufacturing Toolkit, an online resource created with input from the International Trade Administration.

Sustainable manufacturing—that is, the creation of products in an environmentally and socially responsible manner—has become a business buzzword lately. But as companies face increased costs for materials, energy, and regulatory compliance, sustainable manufacturing has also come to be recognized as a smart business practice, as more and more manufacturers realize that “greening” their processes can be a key strategy for achieving global competitiveness.

It was in response to a dearth of internationally comparable performance indicators for sustainable manufacturing that the International Trade Administration (ITA) joined with the Organization for Economic Cooperation and Development (OECD), an international body headquartered in Paris, France, to develop the recently released Sustainable Manufacturing Toolkit.

Guide and Portal

The toolkit consists of two parts: a 52-page start-up guide, which provides a step-by-step approach to measuring and benchmarking environmental performance, and a web portal, which supplements the guide with more technical guidance, data tools, and useful links.

The heart of the start-up guide is a series of seven steps that companies can take to prepare, measure, and improve their sustainable manufacturing processes. The discussion of these steps is enhanced by seven “good practice” profiles that highlight successful efforts undertaken by manufacturers from around the world, including three located in the United States.

The inclusion of the real-world examples is an important element, notes Andrew Wyckoff, director of the OECD’s Directorate for Science, Technology, and Industry. “We think it is important for [companies] to have the right tools, but also to be informed about what works. That’s why we have included .… [these] best practice case studies that illustrate the many benefits of sustainable manufacturing.”

How to Access the Toolkit

The Sustainable Manufacturing Toolkit is available online at www.oecd.org/innovation/green/toolkit. Resources available on the site include a downloadable booklet, Start-up Guide: Seven Steps to Environmental Excellence, as well as a variety of links to technical advice and examples of good practices.

Focus on Needs of Smaller Enterprises

The global market for low-carbon products already exceeds $5 trillion, according to the OECD. Companies that can demonstrate green credentials will enhance their viability in the marketplace. But this can prove a particularly daunting challenge to small and medium-sized enterprises (SMEs). According to the OECD’s Wyckoff, while SMEs account for approximately 99 percent of all enterprises, and two-thirds of employment, in the 34 countries that are members of the OECD, many have not yet embraced the opportunities that come with the adaptation of sustainable manufacturing processes. “They may be struggling with their short-term survival, or cost pressure from clients, or lack of knowledge and resources to invest in environmental improvement, or simply not know where to start.” Thus, the toolkit was especially designed with the needs of small manufacturers in mind.

Close Collaboration

The development of the toolkit was the result of a close collaboration between ITA and the OECD that began in 2006. The OECD was well situated to develop the toolkit due to its access to a wide array of public and private stakeholders and its unique collection of statistical data from around the world. This allowed for an unparalleled degree of comparability and applicability across borders.

For its part, ITA was able to draw on the knowledge and experiences of a large number of U.S. experts through its leadership in the OECD’s Committee on Industry, Innovation and Entrepreneurship. By providing access to both business practitioners and academic specialists active in the field of sustainable manufacturing, ITA was able to facilitate the development and refinement of the toolkit, thus assuring that it was both user-friendly and met the real needs of industry.

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Recent GAO Report Validates Optimization of ITA’s Manufacturing and Services Unit

October 25, 2011

Nicole Y. Lamb-Hale is the Assistant Secretary of Commerce for Manufacturing and Services.

In the summer of 2010, the Manufacturing and Services unit (“MAS”) of the U.S. Department of Commerce’s (the “Department”) International Trade Administration (“ITA”) began an optimization process with the goal of leveraging our in-depth industry and analytical expertise in the development and execution of actionable, value-added trade policy and promotion strategies. Senior leadership initiated this process because of its belief that MAS’s mission and direction needed a sharper focus to more effectively serve the needs of U.S. industry, the White House and our interagency partners. This was especially critical in the context of implementing President Obama’s National Export Initiative (“NEI”) which aims to double exports by the end of 2014 to support several million jobs. As our optimization process was underway, the U.S. Government Accountability Office (“GAO”) began its review of MAS.

The GAO completed its review as MAS was submitting its optimization plan to the Department. We are pleased that the GAO identified many of the same opportunities and challenges that were identified by MAS senior leadership in our optimization process. Indeed, the GAO report validates the improvements that MAS is making in the focus and impact of our work. As an initial matter, the GAO report delineates the unique value add that MAS brings to trade policy and promotion as gleaned from the GAO’s review of the work in MAS’s portfolio and its interviews with MAS’s client agencies. The GAO notes that “[w]hile MAS conducts activities that have similarities to activities of other agencies, officials from MAS’s client agencies stated that MAS can provide analysis that combines industry and trade expertise that is not readily available elsewhere in government.” GAO Report 11-583 at 13. Indeed, one of the highlights of the report was the observation of the Office of the U.S. Trade Representative (“USTR”) that MAS contributes significant expertise and analysis to the U.S. trade policy process that cannot be found in other government agencies or in the private sector.

The GAO notes the value that MAS brings to the development of trade policy and promotion strategies and makes recommendations that are consistent with our current focus. MAS is providing more insightful and outcome oriented analysis of issues that impact the international competitiveness of U.S. industry for use by other U.S. government agencies and by industry. MAS is also improving our value add through the development and execution of actionable strategies to advance the global competitiveness of U.S. industry. Moreover, MAS has developed decision criteria for our employees to use as a guide to determine areas of focus and the concomitant allocation of resources. These operational changes, among others, will enable MAS to more clearly communicate our mission, priorities and activities to our constituents. Further, such changes will enable MAS to obtain feedback from our constituents and track our successes.

MAS is energized by our new orientation and welcomes the opportunity to collaborate with our constituents to help U.S. industries succeed internationally.

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ITA Active at National Health IT Week

October 6, 2011

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

Fred W. Aziz is Associate Director of Technology and E-Commerce at International Trade Administration, where he covers innovation sectors such as cloud computing, health IT, and software.

Matthew Hein has been with the International Trade Administration for the past six years.  He currently serves as an International Trade Specialist on the Pharmaceutical and Medical Devices Team in the Office of Health and Consumer Goods.

Steve Miller is an International Trade Specialist in the International Trade Administration’s  Office of Service Industries where he is responsible for knowledge economy issues including health services, research and development services, and university commercialization.

Principal Deputy Assistant Secretary for Manufacturing and Services Maureen Smith Speaks at National Health IT Week

Principal Deputy Assistant Secretary for Manufacturing and Services Maureen Smith Speaks at National Health IT Week

On September 15, MAS Principal Deputy Assistant Secretary Maureen Smith led off the HIMSS Policy Summit with a speech highlighting the export potential of the Health Information Technology (Health IT) sector, and available Commerce resources to help with that effort.  Through the MAS Health IT Team, which includes representatives from the Office of Health and Consumer Goods, the Office of Service Industries and the Office of Technology and E-Commerce, ITA has engaged  HIMSS and other trade associations to share information on the National Export Initiative and learn of industry’s priorities.

In addition to PDAS Smith’s address at the Policy Summit,  MAS staffers  Matt Hein and Steve Miller, spoke at HIMSS working group meetings, including the Diversity Business Roundtable and the Government Relations Roundtable. In all of these sessions, ITA staff placed an emphasis on collaborating with industry in all aspects of the export life cycle, from research and market intelligence, to export facilitation and advocacy to the resolution of commercial disputes.  This engagement has been paying dividends, with Health IT firms increasingly engaged in commercial activities overseas.

PDAS Smith’s address and ITA outreach coincided with National Health IT week, which also featured industry events and addresses  by Administration and Congressional officials, along with a Presidential proclamation.

As ITA moves forward on other initiatives in this space, the Health IT team is eager to hear from relevant firms and industry groups about their challenges and opportunities.  For additional information please contact HealthIT@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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