Posts Tagged ‘Trans-Pacific Partnership’

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The Future of Renewable Energy to TPP Countries

January 20, 2016

Adam O’Malley is ITA’s Director of the Office of Energy and Environmental Industries

The renewable energy industry remains one of the most dynamic, fast-changing and transformative sectors of the global economy. Bloomberg New Energy Finance predicts that renewables will account for about 60 percent of new generating capacity installed over the next 25 years. This market penetration—along with technology advances and reduced production costs that are quickly moving the sector toward grid parity—underscores the important contribution of renewables to economic growth. Presently, we are seeing an intense demand for these technologies in overseas markets, particularly in the Asia Pacific region.

solar panels and windmill power plant

U.S. energy product exports to the world grew by seven percent between 2009-2014

Overall, U.S. energy product exports to the world grew by seven percent between 2009-2014. This number could be even higher, but the daunting reality of tariffs and service barriers have dampened demand for products such as turbines, solar cells, static convertors, civil nuclear equipment, and high-voltage electric conductors. In some markets, many energy products currently face tariffs as high as 30 percent. In 2014, 36 percent of U.S. energy products exports went to countries in the Trans-Pacific Partnership (TPP) region.

Thanks to the recently completed negotiations of the Trans-Pacific Partnership, once its enacted, exporters will no longer face many of these barriers when doing business in the 11 partner countries. The TPP will reduce the cost of exporting, increase competitiveness of U.S. firms, and promote fairness and transparency. For example, the renewable energy industry will save $24 million each year as countries such as Japan, New Zealand, Vietnam, and Brunei will eliminate import taxes on nearly all of U.S. energy products exports immediately once the agreement is enacted. The implementation of strong intellectual property rights protection and enforceable labor and environmental obligations will also bolster U.S. competitiveness in the TPP region.

Our partner countries are calling on U.S. businesses to support new renewable energy projects with innovative products and services. As a result, the International Trade Administration (ITA) is providing American exporters with the tools they need to meet this demand.

ITA’s Industry and Analysis division recently produced the Renewable Energy Top Markets Report, a market assessment tool designed to help U.S. companies identify markets of opportunity and inform their export strategies related to renewable energy products and services. The report ranks top export markets, features case studies on key markets and identifies areas of opportunity and challenges faced when exporting to TPP partner countries including Canada, Japan, Chile, and Mexico.

Canada

Canada ranks No. 1 on ITA’s list of top renewable energy export markets for the second year in a row. During the next two years, Canada will account for nearly one-fourth of all U.S. exports in the sector. Canada’s national commitment to greenhouse gas reduction suggests significant clean energy investment through at least 2020. This means more opportunities for U.S. exporters. This TPP partner has undergone dramatic changes in its energy sector during the past few years, and is expected to rank sixth in installed renewable energy capacity through 2016.

Chile

Chile is one of the few markets that should support exports in each renewable energy technology, although solar is expected to dominate the export opportunity landscape, including both photvoltaic and concentrated solar power. Chile urgently needs to increase its energy output to meet expected demand growth. Luckily, Chile enjoys one of the world’s strongest resource bases for renewable energy and Chilean policymakers have made a firm commitment to support clean energy investment. Chiles’s open economy combined with its lack of domestic manufacturing capacity for renewable energy goods indicate that as development occurs, U.S. exporters will find considerable opportunity.

Japan

Japan ranks first on ITA’s list of top solar export markets. The market does not impose any local content policies or import tariffs and thus, U.S. exporters benefit from a market in which they can compete fairly with foreign and domestic suppliers. Licensing solar technologies to Japanese companies or providing equipment to manufacture solar panels are two market segments with potential export opportunity. A further opportunity may result from the sharing of best practices associated with financing off-grid solar. In particular, solar leasing arrangements may find a ready market in Japan thanks to the country’s well-established financial sector and growing demand for roof-mounted photovoltaic.

Mexico

Ongoing energy sector reforms make projecting renewable energy exports to Mexico challenging. However, perhaps no market offers as much potential for future U.S. renewable energy exports as Mexico. Mexico’s proximity to the United States and  its abundant renewable energy resource base indicate the potential for significant U.S. exports. Wind projects continue to command a large portion of clean energy investment in Mexico, attracting over $1 billion alone in 2014, nearly half of total clean energy investment within the country. As Mexico currently lacks a full wind supply chain, U.S. suppliers are well positioned to participate in this future growth. U.S. firms are encouraged to participate in the Mexican market, working with local colleagues to both shape the new regulatory environment and benefit from an important first-mover advantage.

For more information on exporting opportunities, reach out to your local trade specialist.

For more information on this historic trade agreement and the future of renewable energy and energy products exports, please download ITA’s energy products sector report and visit our TPP site.

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U.S. Transportation Equipment – Emerging Opportunities With TPP Countries

January 15, 2016

Scott Kennedy is ITA’s Acting Deputy Assistant Secretary for Manufacturing

During the past few years, U.S. producers of transportation related goods and equipment have experienced an increase in demand for their products at home and overseas.  Products such as U.S.-built commercial aircraft, aircraft engines, miscellaneous aircraft parts, and parts of railway rolling stock, have become critical components to other countries’ transportation infrastructure system.

Commercial aircraft

U.S. exporters of commercial aircraft and aircraft engines will now have new opportunities in the TPP region.

Recently, leaders across the Pacific Rim signed the Trans-Pacific Partnership (TPP). The new 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.  The TPP will lead to an overall increase in economic activity and trade for the region.  As economies grow there will be a natural, corresponding rise in demand for transportation related products.

It may come as no surprise that in 2014, there were more than 680,000 U.S. transportation equipment manufacturing workers, accounting for four percent of total manufacturing production. To remain competitive, U.S. firms need duty-free access to overseas markets. Currently, some exporters face high tariffs and a host of other obstacles when conducting business in some of the TPP countries. This historic agreement will reduce the cost of exporting, increase competitiveness of U.S. firms, and promote fairness for transportation equipment manufacturers.

ITA’s Industry and Analysis division recently released a transportation equipment sector report that highlights the benefits of TPP related to some key players in the transportation industry. Thanks to TPP, Japan, Malaysia, Brunei, and New Zealand will eliminate import taxes on all U.S. transportation exports immediately. TPP is critical because 26 percent of U.S. transportation equipment exports to the world went to TPP countries.

For example, U.S. exporters of aircraft and aerospace equipment will now have new opportunities in the TPP region. TPP’s streamlined customs provisions will cut red tape and facilitate trade throughout the region, further enhancing the U.S. industry’s competitiveness.  Many TPP partners have already been identified as being Top Markets for U.S. aerospace parts producers, including Singapore, Canada, Japan, Australia, Mexico, New Zealand and Malaysia.  Singapore is already a transportation linchpin for the region and a hub for aircraft maintenance.  Singapore is consistently a top market for U.S. aerospace parts exports, and parts exports averaged over $5 billion between 2004 and 2013.  As trade in the region expands manufacturers could expect this demand to grow.

Similar to aerospace exports- the United States is a competitive producer in railway equipment including railway rolling stock, switching equipment, and signaling and safety equipment. However, U.S. exports of railway equipment face tariffs of five percent in Malaysia and New Zealand, making those products less competitive compared to Chinese goods which face low or zero tariffs in those markets. Under TPP, both countries will eliminate tariffs on all U.S. exports of railway equipment.

Internationally, the demand for transportation equipment is expanding.  By offering stronger opportunities for U.S. exporters to compete abroad, we will enhance innovation and job growth at home.  To learn more about this historic agreement and access our market assessment tools for U.S. exporters, visit trade.gov or contact one of our local offices.

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The Trans-Pacific Partnership: A Win for American Businesses and Workers

October 5, 2015

Stefan M. Selig is the Under Secretary of Commerce for International Trade.

Trans-Pacific Partnership logoWith the negotiations for the Trans-Pacific Partnership (TPP) completed, today is an important day for American businesses and workers. I would like to commend our negotiators, the Department of Commerce and International Trade Administration professionals who assisted in the negotiations, and all other involved parties for their tireless efforts to find consensus on this historic agreement.

TPP is an historic agreement precisely because of the opportunity it represents for U.S. exporters. By reducing or eliminating tariffs as well as non-tariff barriers, TPP will give our businesses improved access to 11 Pacific Rim markets collectively representing 40% of global GDP. Additionally, the majority of middle class consumers over the next 15 years (3.2 billion people according to the OECD) will reside in the Asia-Pacific region, which is also estimated to generate nearly half of global economic growth over the next 20 years.

TPP will also remove market ambiguities, producing the transparency and predictability that facilitates global commerce. The agreement will commit partner nations to stronger intellectual property protections as well as clear rulemaking to prevent the rise of burdensome regulations. At the same time, TPP will protect the right of all partner nations to regulate their markets while ensuring that U.S. investors enjoy the same rights and protections as their competitors.

But trade agreements alone do not create business realities. And a historic agreement like TPP requires a first-class infrastructure that maximizes its potential. That infrastructure exists in the Department of Commerce generally, and more specifically in the services and programs provided by the 2,200 trade and investment experts of ITA; all of whom are committed to maximizing the benefits of TPP for American businesses and workers.

Our infrastructure begins with our Commercial Service. We already have a strong presence in all 11 TPP partner markets with 170 Foreign Commercial Service officers and staff in U.S. embassies and consulates. Our on-the-ground presence will connect U.S. businesses to TPP partner markets and help secure important connections with distributors, manufacturers, and other potential partners. That international infrastructure is complemented by our Commercial Service staff in more than 100 cities in the U.S., who will assist exporters throughout the country.

ITA is also committed to increasing opportunities to connect U.S. companies directly with potential business partners. Through our International Buyer Program, we will stand up domestic trade shows to create matchmaking opportunities with recruited delegations of qualified buyers and sales representatives from TPP countries. We will also work in coordination with administration officials to arrange and participate in trade missions focused on specific industry sectors. And through our Advocacy Center, we will work with senior administration officials to assist U.S. firms in winning government contracts.

But optimizing trade agreements also means enforcing them when necessary. That is why U.S. businesses can rely on the protection of our Enforcement and Compliance experts, who will monitor, investigate, and ensure TPP compliance among all of our partner markets.

With demand and growth exploding in the Pacific Rim, TPP is vital to ensuring that U.S. companies compete and win in the global marketplace. Both ITA and I stand ready to make sure that all businesses fully benefit from the historic opportunity this agreement provides.

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How Trans-Pacific Partnership Benefits U.S. Trade

September 15, 2015

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

This morning, Under Secretary Stefan Selig interviewed with Bloomberg Business on how the Trans-Pacific Partnership will benefit American businesses. “For U.S. companies to be successful, we have to engage in the global economy,” says Selig. “That is where the growth is..that’s where the customers are..that’s where the markets are. We need to give U.S. companies everything they need to compete successfully.” You can watch the full interview here.

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President Obama Prescribes Increase in U.S. Exports to Support Economic Growth

February 13, 2013

Francisco Sánchez serves as the Under Secretary of Commerce for International Trade. 

Archived photo showing Congress during 2011 State of the Union Address.President Obama made it clear in his State of the Union address that American exports will play a part in America’s economic success. This requires creating free access for American goods to more markets, enforcing trade laws, and ensuring a level playing field in which American companies can compete.

These initiatives have and will continue to support business and create jobs. Over the last 35 months, they’ve already contributed to the creation of 6.1 million private-sector jobs. We at the International Trade Administration are proud to be a part of that success and we know that continuing these initiatives will lead to further economic growth.

The President specifically mentioned completing the Trans-Pacific Partnership and entering into a trade agreement with the European Union. Trade agreements like these proved effective in 2012, when we set a new record for U.S. exports. Recently released data show that almost half of the growth in U.S. exports in 2012 was to countries with which we have similar agreements. In fact, U.S. exports to the 20 countries with which we have trade agreements comprised almost half of American goods exports in 2012.

We achieved record levels of exports to 11 of our trade agreement partners in 2012. Five of them – Australia, Canada, Chile, Mexico and Peru – will all be a part of the TPP and accounted for more than $550 billion in U.S. exports. Completing this partnership will further develop our trade with these countries and help our exports continue to grow.

As Deputy Secretary of Commerce Rebecca Blank explained today, a trade agreement with the EU “will support good-paying American jobs and will expand our trade and investment relations, strengthen our economy, and create new opportunities on both sides of the Atlantic.”

President Obama also mentioned the importance of enforcing trade regulations and ensuring a level playing field in which American exporters can compete. We accomplish this mission every day at ITA, and we are proud to help American exporters compete as a lead member of the President’s Interagency Trade Enforcement Center.

The President has set a clear path to use export growth to help grow the American economy. We at the International Trade Administration are ready to do what it takes to continue to support President Obama’s mission and help support a thriving American economy.

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Under Secretary Sánchez to Speak on Panel for Technology-Based Global Innovation

January 31, 2013

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Tyler Braswell is an intern for the International Trade Administration’s Office of Public Affairs. He is studying International Business and attends George Washington University.

The Digital Age is upon us. The effect of digital technology on the global market has been well documented as technology-based companies continue to supply the world with innovative methods and products that increase the quality and efficiency of American lives and businesses.  The creation of jobs due to new technology as well as the continued financial success of technology-based firms has made the promotion of technology-based innovation a top priority for any economy looking to compete internationally.

President Obama’s plan to make high-speed wireless services available to 98% of Americans will make technology-based software and products even more accessible to American consumers. As technology is integrated more deeply into society, the U.S. is working to ensure that these integrations directly translate to domestic economic growth.

On Feb. 4, Francisco Sánchez, Under Secretary of Commerce for International Trade, will participate in an event hosted by the Information Technology Innovation Foundation (ITIF). The ITIF is a non-partisan think tank whose mission is to help American policymakers better understand the nature of a new innovation-driven economy.

The ITIF discussion panel will focus on the increase in global competition to host technology-based firms and the benefits that hosting such companies can have on a country’s economy. The event will also feature information on how countries attract technology-based firms and what the U.S. has done to improve its appeal to those firms. The Under Secretary will be joined on the panel by the general counsels for NCR and Qualcomm.

Sánchez and the panel will answer questions from industry participants concerning the advantages currently offered to firms that choose to do business within the United States.

The Under Secretary will also provide information on certain policies the U.S. has enacted to promote technology-based industry within the U.S. as well as trade agreements designed to benefit American companies.

The U.S. is actively advancing trade agreements and initiatives to broaden market access. Technology-based firms will be among the primary beneficiaries. Trade agreements like the Trans-Pacific Partnership (TPP) will help technology-based firms by expanding access to key Asian markets and removing bans on border crossing data-flows.

American leaders—both in government and business—appreciate that supporting technology-based firms is necessary to achieve President Obama’s goal of increasing our exports and re-balancing our economy, which are embedded in the National Export Initiative. This event will reaffirm the International Trade Administration’s commitment to increase exports, further the global expansion of domestic businesses, and attract new technology-based industries to the U.S. economy.

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Putting International Trade at the Local Level

January 30, 2013

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Elías González is an intern in the International Trade Administration Office of Public Affairs, and is a former West Point Cadet and graduate from the University of Pennsylvania.

Should local governments pay attention to international trade? American trade leaders think so and they’re helping city leaders take a bite out of the export pie.

International trade was a hot topic at the U.S. Conference of Mayors’ Winter Meeting in Washington, DC this month, and representatives from the International Trade Administration (ITA) used the opportunity to illustrate how U.S. competitiveness depends on local communities.

Francisco Sánchez, Under Secretary for International Trade, emphasized the importance of the president’s National Export Initiative (NEI).  He said that 95 percent of consumers live outside the U.S., and that the NEI is instrumental in helping American businesses access those foreign markets. He also lauded its success, citing that U.S. exports reached a record $2.1 trillion in 2011 and that data when available next month will likely show that 2012 was even higher.

In a separate task force meeting, Walter Bastian, Deputy Secretary for the Western Hemisphere here at ITA, reaffirmed the importance of international trade, pointing out that trade with Mexico alone produces an average of $1 million a minute for the U.S. economy.

Bastian emphasized the importance of the Trans-Pacific Partnership (TPP), a trade agreement among several Asian, Pacific, and North American countries, and how it will strengthen trade with Mexico. He said that it will help reduce the cost of doing business, potentially making that million-dollar-a-minute figure higher.

Sánchez and Bastian were quick to note that the economic benefits from trade are not felt only by the U.S. as a whole, but by local communities as well.

In a cooperative effort to help local communities enter the exporting business efficiently, ITA has partnered with the Brookings Institution on the Metropolitan Export Initiative (MEI). Several metropolitan areas in the U.S. are already participating, and the Under Secretary urged the mayors to utilize the tools the ITA provides. The MEI is one of many tools in place to remedy inefficiency. Inefficiency at the border—issues like long wait times for trucks—cost upwards of $6 billion per year.

Initiatives like the MEI help local communities gain greater control over their exports and create more efficient and beneficial trade partnerships.

Under Secretary Sánchez concluded his discussion at the conference by emphasizing that cities need to prioritize exports, reach new markets, and draw new investments. He reiterated what he and Bastian deemed crucial, that as cities succeed the country succeeds, and that ITA is here to help.

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