Archive for the ‘Service Industries’ Category

h1

Health IT – Exporting Critical Services to TPP Countries and Beyond

January 7, 2016

Marcus Jadotte is ITA’s Assistant Secretary for Industry and Analysis.

Health Information Technology (Health IT) has the potential to be one of the world’s most transformative industries over the next few years. The use of electronic health records to comprehensively collect and organize patient information, remote monitoring and telemedicine services to treat patients, and the use of statistical and analytical tools to determine the best course of treatment for both individual patients and entire populations of citizens, represent a few examples of how Health IT can have a significant impact on the health care sector in the future.

Trans-Pacific Partnership (TPP) countries face challenges similar to those in the United States regarding delivery of health care, such as adequately and efficiently addressing a patient’s health condition, while maximizing cost effectiveness. Given that many TPP countries have health care systems at a relatively early stage of development, U.S. exports of Health IT product and service solutions provide a tremendous opportunity for these countries to quickly deliver improved health care to their citizens. Provisions in the TPP regarding pharmaceuticals, medical devices, and medical supplies, in conjunction with increased deployment of Health IT, will lead to critical improvements in the health care sector among all TPP countries, saving thousands of lives daily.

In addition, TPP will reduce the cost of exporting medical supplies, pharmaceuticals and medical devices; increase competitiveness of U.S. firms; and promote fairness. The agreement will eliminate tariffs, lower service barriers, and increase transparency while also increasing competitiveness by instituting stronger intellectual property rights protection and establishing enforceable labor and environmental obligations. In addition, TPP sets up new high-standard global trade rules, updating 20-year-old WTO rules for the modern economy.

When a level playing field exists, American companies and workers can effectively compete against anyone in the world; therefore, TPP will ensure that the rules of trade and investment are fair. With 646,000 U.S. health product workers in 2014, it is important that the new agreement protects made-in-America products.

Within the agreement, Japan and Malaysia will eliminate import taxes on 100 percent of U.S. health products exports immediately. Also, 99.9 percent of U.S. health products exports to TPP markets will enjoy duty-free access immediately.

In summer 2015, ITA released a Health IT market sector report that shows many export market opportunities for the industry. An updated report is scheduled to be released later this year.

TPP partner countries such as Japan, Mexico, and Singapore have great opportunities for U.S. exporters. Check out findings from our Top Markets reports on projected outcomes for the industry.

  • Japan represents an attractive export market for U.S.-made Health IT products and services, primarily for established companies. In fact, Japan ranked as the top country in the Health IT Top Markets Report, with a favorable demographic profile, the third highest GDP level globally, a largely urbanized population, a tech-friendly society, and sizable current market, coupled with significant ICT and health care investments already in place.
  • Mexico represents an important medium-sized Health IT market opportunity for U.S. companies, as evidenced by the strong trading relationship between the two countries. Several factors contribute to this opportunity, including Mexico’s recognition of the quality of U.S. products and services, the absence of regulations inhibiting innovation and expansion, and the ongoing investment in Mexico’s health care system. Several recent trade missions organized by ITA have demonstrated Mexico’s interest in U.S. products and services. In fact, the Mexican Health IT market is currently estimated at more than $200 million!Though the country’s Health IT market is not as large as other countries, it is one with significant potential for U.S. small- and medium-sized companies. More specifically, TPP addresses trade barriers that pose disproportionate challenges to our small- and medium-sized businesses such as high foreign taxes, overly complex trade paperwork, customs red tape, restrictions on Internet data flows, and weak logistics services. These challenges severely harm the ability of small- and medium-sized businesses to create American jobs.
  • Singapore represents a significant market opportunity for U.S. Health IT companies. Opportunities exist for U.S. companies in this sector, particularly for care coordination for private insurers and physicians, and possible deployment of new mobile applications. Using ITA’s Health IT market report’s methodology, the reasonably high-level of mobile phone subscriptions, strong score on physician density, and its highly urban population, are noteworthy market characteristics.

If you are interested in learning more about this growing industry, contact Matthew Hein (Matthew.Hein@trade.gov), Health IT industry analyst at ITA, or reach out to one of ITA’s local offices.

Note: Matt Hein will attend the largest Health IT trade show next month (Healthcare Information and Management Systems Society conference and exhibition, February 29-March 4 in Las Vegas). He’d love to meet you at the event and discuss your company’s exporting goals.

h1

Textiles & Apparel – A Global Industry

December 10, 2015

Joshua Teitelbaum is ITA’s Deputy Assistant Secretary for Textiles, Consumer Goods, and Materials.

With the Trans-Pacific Partnership (TPP) eliminating more than 18,000 foreign taxes on Made-in-America exports, it’s no secret that the TPP will bring major opportunities for American manufacturers. This includes one of the most important U.S. export industries: Textiles and Apparel.

In fact, in 2014, the United States exported more than $8.5 billion globally in technical textiles, which are textile products used primarily for their performance qualities rather than their appearance. Technical textiles include seat belts, surgical gowns, and industrial filters, among many other items.

Under the TPP, Japan—which maintains duties on our technical textiles exports as high as 8.2 percent and is our fifth largest export market for these products—will eliminate nearly all of their duties on our technical textiles exports immediately. Eliminating these foreign taxes on U.S. products is how we boost U.S. manufacturing and support American textile workers.

In addition, by setting new, high-standard global trade rules, TPP puts American workers first. These high standards include the strongest enforceable labor standards of any trade agreement in history. The new agreement also supports U.S. manufacturing, especially by small- and medium-size enterprises (SMEs), by streamlining customs processes, facilitating greater transparency in rules, and preventing unfair competition from state-owned enterprises.

While 98 percent of U.S. exporters are small businesses, less than five percent of U.S. businesses sell their goods and services to markets overseas. Thankfully, the new agreement is an opportunity to boost exports and make it easier for more SMEs to do business abroad. For the first time in any trade agreement, TPP includes a dedicated chapter on small- and medium-sized businesses that focuses on how these companies can benefit from trade.

Recently, the Industry & Analysis division in the International Trade Administration produced a series of market assessment tools for U.S. exporters called Top Markets Reports. As we prepared these reports, our research revealed that competition in the global market for technical textiles is very strong. In the reports, some industry highlights for TPP partner countries include:

  • Canada continues to be an attractive export market for U.S.-made technical textiles, especially for companies that are new-to-export and/or new-to-market. The Canadian market is the second largest market for U.S. exports of textiles and apparel. Due to proximity, similar business cultures, and a high receptivity for U.S.-made products, there is a high volume of bilateral trade between the United States and Canada.Similar to the United States, Canada has experienced an economic shift in its textile industry. This shift has moved away from manufacturing traditional high-volume commodity textile products to developing and manufacturing technical textiles.
  • Mexico is the United States’ largest market for textiles and apparel. The size of Mexico’s textile and apparel sector coupled with its proximity to the United States and the flexibilities afforded to U.S. exporters through NAFTA, ITA expects continued investment in all four technical textile sectors— non-woven, medical, protective, and specific/industrial —and continued growth into the future.
  • Vietnam’s textile and apparel industry is growing faster than that of many of its regional competitors. The Vietnamese textile industry has more than 3,800 companies. Foreign companies are starting to pour more money into Vietnam to take advantage of potential economic opportunities from future free trade agreements. Over the past several years, Vietnam’s textile and apparel industry has benefitted from increased foreign investment. Because of this consistent growth, U.S. companies will have the chance to increase their exports of technical textiles to more consumers and businesses in Vietnam.

To learn more about this growing industry, the impact TPP will have on it and how to take your business global, please contact one of our local offices.

h1

Exports in Higher Education–Finding Qualified Students in Central Europe

November 23, 2015

Jennifer Moll is a Senior International Trade Specialist at the International Trade Administration’s Detroit Export Assistance Center.

If you work in higher education, your institution may be actively recruiting international students. Successful international recruiting involves finding students abroad; venues to conduct effective outreach; forming international partnerships; ensuring international students meet the school’s qualifications; and connecting with scholarship and financial aid options domestically and internationally. In the spring, we’ll host an event designed to help your institution explore all of these important elements in the growing higher education market of Central Europe.

The U.S. Commercial Service at the U.S. Embassies in the Czech Republic, Poland, and Hungary, is partnering with EducationUSA and the Fulbright Commission, to organize education fairs in their respective countries from April 18-22, 2016.

The fairs are much more than shaking hands with foreign diplomats. In each market, event participants will have access to:

  • Briefings from the U.S. embassy in each country about the education environment and market factors;
  • One-on-one appointments with potential partners;
  • A student fair; and
  • Networking events in the respective country (Prague, Warsaw, or Budapest).

Central Europe has experienced amazing development in the last 20 years, including growth in the field of higher education. Across the region there is a strong tradition and interest in quality education that U.S. institutions can tap into. Prague, Warsaw, and Budapest each have unique characteristics that make them suitable targets for overseas recruitment efforts:

  • The Czech Republic has great recruitment potential. High-quality educational programs, coupled with English as the standard second language, produce a large pool of highly qualified candidates for both undergraduate and graduate studies in the United States. Also, an increase in study abroad programs and institutional cooperation has given rise to several new private foundations that have the potential to be sources for student scholarships.
  • Poland is unquestionably a prime target for U.S. educational institutions to successfully recruit undergraduate and graduate students. This market not only represents the sixth largest country in the European Union in terms of population, but it also has a population heavily skewed toward young students interested in higher education.
  • In Hungary, studying abroad is seen as an absolute must for many students, with one-third of students having the goal of study overseas. Summer camps, as well as special English language and mentoring programs all contribute to a large, highly-qualified pool of applicants that will be of great interest to U.S. colleges and universities.

To expand your institution’s international reach to these growing markets, visit the event page to learn more. Be sure to sign up for our related webinar, ‘Best Practices and Opportunities for Student Recruitment in the Czech Republic, Poland and Hungary’, on December 2nd at 11 a.m. EST.

There’s never been a better time to explore the higher education market in Central Europe. Our team would love to help your institution succeed!

*For more information or questions, email Jennifer at Jennifer.Moll@trade.gov.

 

h1

Back-to-School Means More International Trade in Education

September 10, 2015

This post originally appeared on the Department of Commerce blog

Student in University Classroom

Student in University Classroom

Guest blog post by John Siegmund, International Trade Specialist, International Trade Administration

As the summer comes to an end, millions of students are returning to campuses all over the country.  A good portion of these students are coming from abroad. Did you know that the tuition and living expenses of foreign students make up an important services export?  In 2013 the total came to $27 billion in U.S. exports, roughly twice the amount of a decade ago.  The total number of international students has also grown steadily.

The Department of Commerce recently released the Top Markets Report on Education.  The report highlights market dynamics, trends and key challenges to studying in the United States.

About 886,000 foreign students were studying at colleges and universities in the United States in 2013/14. The top five sending countries that year were; China (274,000 students), India (101,000 students), South Korea (68,000 students), Saudi Arabia (54,000 students), and Canada (28,000 students).

The report also projects future export opportunities based on research and trends. The eight markets that offer potentially the best opportunities to increase foreign enrollments in the years ahead are Brazil, China, France, Germany, India, South Korea, Saudi Arabia, and Vietnam.  Selection of these key markets, described in the report’s methodology, is based on the number of students from a given country studying in the United States, the total number studying abroad, and historical growth rates of students studying in the United States.

Enrollment of international students is important to U.S. institutions, but they face competitive challenges, notably (1) growing competition from other English-language countries primarily the United Kingdom, Canada and Australia; (2) competition from English-language programs in countries where English is not the language of the country; and (3) the perception of difficulties and delays in getting U.S. student visas.

The report also offers reasons that students choose to study abroad.  Demographics, economics, secondary school completion rates, tuition costs, household income, and employer needs all play a role.  The most popular fields of study include business and management, and the STEM fields.

Although the United States is the largest destination country for international students, the U.S. percentage share of international students has eroded over the past decade. The number of international students worldwide has increased faster than has the number of international students coming to the United States. I would encourage you to take a look at the Top Markets Report on Education to learn more about this surprising industry!

h1

Cloud Computing Exports Drive Growth at Home and Abroad

August 27, 2015

Brian Larkin is a Senior Policy Advisor in ITA’s Office of Digital Services Industries.

Cloud computing, which allows companies of all sizes to easily and inexpensively access computing resources, has become a key enabling tool for firms in many global markets. It should therefore come as no surprise that corporate cloud spending may reach $191 billion by 2020, more than triple the 2013 total, according to Forester Research. U.S. providers have leveraged technological expertise, innovative approaches, first-mover advantages, and other strengths to earn leading international positions in the delivery of cloud services. While they are sure to benefit from growing demand, these trendsetting firms still face challenges in some critical markets.

The 2015 Top Markets Report on Cloud Computing explores this global landscape. International Trade Administration (ITA) policy experts and embassy staff contributed to the report, which features profiles of countries in Europe, Asia, and Latin America, as well as an overall ranking.

All but a few of the world’s top enterprise cloud providers are based in the United States. These firms may specialize in bits and bytes instead of the physical shipments that trade discussions often evoke, but they are major contributors to our nation’s exports. In fact, digitally-deliverable services, a category that includes cloud computing, have accounted for over 60 percent of U.S. service exports in recent years and been an area in which the United States enjoys a substantial trade surplus.

The U.S. economy is far from the only one benefiting from the popularity of cloud services, however. These make it easy for companies, particularly small- and medium-sized enterprises (SMEs), to quickly access advanced computing resources without having to invest in and manage costly technical infrastructures. They unlock technologies and platforms that could otherwise be out of reach, enabling firms in all industries to enhance business processes, lower expenses, and raise productivity – a key contributor to broader economic growth. And for those digital startups looking to launch the next must-have app, they provide a host of useful tools. It’s thus little wonder that foreign technology groups like Rovio, Spotify, and Shazam chose U.S. cloud providers to help them achieve global success.

Despite the clear benefits of cloud adoption, some countries are considering or have enacted policies that would limit their domestic companies’ access to these services. These include rules preventing data from moving freely across national borders, such as from an SME in one country to a cloud provider with servers in another, such as the United States. Data flow restrictions undercut economies of scale and make it extremely difficult for cloud firms to offer affordable, reliable access to productivity-boosting resources.

Among other justifications, policymakers may believe that by requiring data to be stored locally, they can stimulate the growth of their domestic technology sector. However, these mandates are far more likely to make it impractical for cloud providers to continue supplying local firms, potentially cutting off a wide array of enterprises from the most sophisticated services available. Accordingly, the European Center for International Political Economy has found that recently proposed or implemented data localization rules in several countries would cause GDP losses.

ITA is a leading voice in the U.S. Government’s global engagement on regulatory issues affecting U.S. cloud providers, such as data localization. Every day, ITA engages with foreign leaders and policymakers, analyzes fast-changing market dynamics, and works with inter-agency colleagues to help ensure that U.S. firms receive equitable market access overseas.

We also strive to provide useful information to U.S. cloud providers big and small as they seek specific export opportunities. We believe that this year’s Top Markets Report on Cloud Computing does just that, and we look forward to hearing your thoughts on it.

h1

U.S. Health IT Companies Experience a Boost in Export Opportunities

July 29, 2015

By Matthew Hein, International Trade Specialist in the Office of Health Information Technology at the International Trade Administration.  

The Health Information Technology (Health IT) sector has become an important, dynamic sector reshaping the healthcare system in the United States.  As other countries increase investments in their healthcare systems, they are interested in investing in digital products and services, driven by computers and mobile phones, rather than through paper-based systems. As a result, U.S. Health IT companies have become prime candidates to offer the technologies and services needed to meet the requirements of the 96 percent of patients based outside of the United States. The International Trade Administration (ITA) is committed to providing U.S. Health IT exporters the data-driven market intelligence they need to succeed globally – whether finding a company’s next export market or comparing opportunities for first-time exporters.

This is the first Top Markets Report on the Health IT sector, providing exporters with analysis of future export opportunities, and possible barriers companies may encounter overseas. The Health IT Top Markets Report, part of the larger Top Markets Series, includes a methodology used to rank 80 potential export markets, eight country case studies, and several charts and graphs which show the market potential for the sector. The Health IT Top Market Report is forward looking, using data and analytics to project the strongest markets for future export growth; designed to help exporters compare opportunities across borders, identify opportunities for market expansion and/or market entry; and help exporters prepare effective strategies for entering or expanding their presence in foreign markets.

So what does the future hold for the sector? With approximately $7 trillion in healthcare expenditures worldwide, the opportunities available for the Health IT sector are vast. However, since the rules and regulations governing the sector may not be keeping up with the innovations being developed, companies would greatly benefit from counseling and guidance from ITA when exploring opportunities overseas, both from the Top Market Report, but also through the ITA network of resources located worldwide.

Here are some important findings in the report:

  1. Japan, Switzerland, Netherlands rank 1st, 2nd, and 3rd in the Export Market Rankings.
  2. Several smaller countries (such as Kenya, Saudi Arabia, and Singapore) profiled in the Report offer exciting export opportunities for Health IT companies. Health IT market access for exporters to Low- and Middle-Income Countries may be easier than that found in larger, more developed countries.
  3. A high rating of physician worker density/capita (as a proxy for healthcare workers) may result in a less intensive need for Health IT solutions in a country.
  4. Current data on mobile phone penetration rates offers an incomplete (and potentially inaccurate) picture of mobile health/telehealth potential in a country.
  5. A high prevalence of prepaid mobile phone plans in a country can be a significant encumbrance to widespread adoption of mobile health and telehealth solutions.
  6. A high level of healthcare expenditures (used as a proxy for Health IT expenditures) in a country did not necessarily result in a high ranking for a country using the Report’s methodology.

This post has only touched on some of the analysis you’ll find in the full report. I invite you to download the full report for our in-depth market analysis; and welcome feedback on our methodologies, viewpoints, and rankings.

h1

Secretary Pritzker Discusses Importance of Travel and Tourism Industry at IPW in Orlando

June 4, 2015

This post originally appeared on the Department of Commerce blog.

Secretary Pritzker Discusses Importance of Travel and Tourism Industry at IPW in Orlando | Department of Commerce

Secretary Pritzker Discusses Importance of Travel and Tourism Industry at IPW in Orlando

Secretary Pritzker Discusses Importance of Travel and Tourism Industry at IPW in Orlando

On Monday, Secretary Pritzker traveled to Orlando and spoke at the U.S. Travel Association’s annual IPW event. IPW is the world’s largest travel and tourism trade show dedicated to the sale of U.S. goods and services. During her remarks, she also issued the 2015 Spring Travel Forecast, which showcases America as a premier travel destination with continued international visitation growth through 2020.

The Administration recognizes the vital importance of the travel and tourism sector to the economic health of the United States. In 2014, nearly 75 million people from around the world visited the United States, spending about $221.6 billion, on hotels, cars, food, and entertainment, and supporting 1.1 million American jobs. With global competition to attract international visitors rising,  the Department of Commerce and the Administration are focused on efforts to keep visitors coming back to the United States.

In 2012, President Obama launched the first-ever National Travel and Tourism Strategy, establishing the goal of welcoming 100 million international visitors to the United States and having them spend $250 billion in 2021. Through stronger public-private partnerships, the Administration has made progress on a number of efforts to improve the experience of traveling to the United States, including:

  • Reducing visa wait times at our embassies and consulates around the world
  • Expanding preclearance into nine new countries (including Belgium, Dominican Republic, Japan, Netherlands, the United Kingdom), which will allow passengers to have a better, faster, and more efficient experience entering the United States
  • Instituting Trusted Traveler Programs like Global Entry, which expedites the entry of pre-approved, low-risk American citizens and lawful permanent residents into the country
  • Expanding the Visa Waiver Program to 38 countries
  • Creating Brand USA, a first-of-its-kind partnership that brings the public sector together with nearly 500 organizations to collaborate on consumer campaigns, to cooperate on marketing programs, and to facilitate travel and trade outreach
  • Released a series of Airport Action Plans that will simplify and streamline entry for visitors at 17 of our top U.S. airports

America remains a premier travel destination for international visitors and the Administration is committed to working hard to maintain the best-in-class experiences for all guests coming to our nation’s shores.

Follow

Get every new post delivered to your Inbox.

Join 621 other followers