Archive for January, 2012

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The U.S.-Mexico Border is Open For Business

January 30, 2012

Michael C. Camuñez is Assistant Secretary of Commerce for Market Access and Compliance.

“The U.S.-Mexico border is open for business.” That is the refrain I and others who work on border issues tirelessly deliver wherever we can. But with the media’s relentless focus on immigration, drug-trafficking, and cartel violence, we know that we must provide and promote objective evidence to support our message. A report recently released by Arizona State University’s North American Center for Transborder Studies (NACTS) and NDN’s New Policy Institute (NPI), entitled “Realizing the Value of our Cross Border Trade with Mexico” does both.

The report only confirms the overwhelming evidence that the Department of Commerce’s International Trade Administration (ITA) has assembled conclusively establishing that Mexico and, by extension the U.S. Mexico border, is vital to the long-term health of the U.S. economy. However, all of that evidence is for naught if Americans are not made aware of it, but instead are distracted by the media’s focus on more controversial issues.

That is why I was pleased to join the effort to promote and further publicize the NACTS /NPI report at an event hosted by the New Democrat Network (NDN), where I was joined by one of the authors of the report, NACTS Director D. Rick Van Schoik. I am convinced that it is through this kind of collaboration—that between public and private sector—that we will change the national conversation about the border.

Particularly in tough economic times we must not allow ourselves to be distracted by ancillary issues. As President Obama made clear in his State of the Union address, our focus must be on growing jobs and strengthening the American economy. Mexico and the U.S. Mexico border are essential to that effort. Mexico is the U.S.’s third largest trading partner and second largest export market. Last year, we did nearly $400 billion in two-way trade, translating to more than $1 billion dollars a day on average. Notably, even goods imported from Mexico support U.S. jobs. That is because 64% of the content of Mexican goods sold in the U.S. are made from U.S. inputs.

As in any relationship, there are challenges, but we are working hard to address them. The ITA has launched a Border Export Strategy, seeking ways to further facilitate cross-border trade. We have placed a senior director on the border full-time to increase our awareness and responsiveness to challenges U.S. companies face in the region. The ITA has also sent half a dozen trade missions to Mexico in a variety of sectors, including green energy/energy efficiency and health care, with more planned this year, such as the one I am leading this week. These missions serve to showcase the ingenuity and know-how of U.S. companies.

An “America Built to Last” is an America that plays to its strengths and leverages its most important resources. Chief among those strengths is the commerce flowing across the US-Mexico border—an asset that is, as the recent NACTS /NPI study affirms, “hidden in plain view.”

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Promoting Advanced Manufacturing in the Textile Industry

January 26, 2012
This post contains external links. Please review our external linking policy.

Kim Glas is the deputy assistant secretary for textiles and apparel within the International Trade Administration’s Import Administration division.

The textile industry is alive and well here in the United States. I’ve spent several days this week with Francisco Sánchez, under secretary for international trade, in North Carolina touring two examples of textile industry manufacturing that represent the broad spectrum of the industry.

Francisco Sanchez, under sectetary of commerce for international trade, left, listens to plant manager Keith Nicholson, right, as he toured Parkdale plant 15 in Belmont on Wednesday morning. (John Clark/The Gazette)

Francisco Sanchez, under secretary of commerce for international trade, left, listens to plant manager Keith Nicholson, right, as he toured Parkdale plant 15 in Belmont on Wednesday morning. (John Clark/The Gazette)

During the past two years, increased demand for Parkdale’s diverse mix of high quality cotton, cotton blend, and polyester yarns has allowed the company to allocate more than $100 million on capital expenditures, creating nearly 1,500 jobs.

Parkdale hosted a unique industry panel of local textile representatives, to share with us the issues facing manufacturing, the importance of innovation for advanced textile manufacturing, and the importance of industry growth in jobs and exports.

The industry representatives included Polymer Group International (PGI), Unifi, Inc., Mount Vernon, Frontier Spinning, Pharr Yarns, Hanesbrands, VF Corporation, and the North Carolina Department of Commerce who are all very familiar with the changing face of textile and apparel production here in the United States.

Many people may not be aware that the United States is the second largest single country exporter of textiles, with $20 billion in exports in 2010. Businesses that contribute to this volume of exports range from small, family-owned and operated facilities to integrated mills that operate state of the art machinery and production equipment.

The textile and apparel industry provides the U.S. economy with a major source of employment and economic activity.  The industry is one of the largest employers in the manufacturing sector. Between 2009-2010, the U.S. textile and apparel exports grew 19 percent to $20 billion, and were up 14 percent through November of 2011.

North Carolina in particular has a high concentration of our textile industry. Many global leaders of the industry call North Carolina home. Freudenberg, the world’s largest producer of nonwovens, has two locations in the state, with its North American headquarters in Durham; Kimberly Clark, a vertically integrated manufacturer and converter of nonwoven products for the health and hygiene markets, with two manufacturing facilities; and PGI, one of the world’s leading companies in the hygiene, wipes, medical, industrial, and specialty markets with production operations in four locations in the state, with its headquarters in Charlotte.

There are more than 500 performance textile businesses located in 76 out of 100 counties across North Carolina. Performance textiles are fiber-based products that are valued for their technical function and properties as well as their aesthetics.

Our second tour was to see the future of textiles at North Carolina State College of Textiles. We toured the labs to see how technical advanced textiles are being used in aerospace, industrial, marine, medical, military, safety, and transportation. The global market for technical textiles was estimated to have a value of $93 billion in 2000 and expected growth is estimated at $127 billion in 2011.  There is huge expansion potential for this industry.

Advanced textile materials hold great potential for the U.S. textile industry, from textile heart filters, to textile composites used in airplane bodies, to highly flame resistant fabrics and clothing for soldiers, first responders and firemen – the United States is on the leading edge of new and innovative products and materials.

North Carolina State University’s College of Textiles “Centennial Campus”, is home to university colleges, departments, and research labs and also home to 61 industry and government partners who work with the university each day.  These partners are fully integrated into the university, working with faculty, students and staff.

Founded 113 years ago, the College of Textiles is the leading institution of its type with more than 2,000 graduate and undergraduate students.

The new Nonwovens Institute Partner Lab will revolutionize research and development in air, blood and water filtration and demonstrates the College’s close partnerships with leading companies throughout the world.  The Nonwovens Institute has more than 60 industry partners and is the largest industry-academic consortium in the United States.  These partners help drive the purpose-driven research taking place in the Nonwovens Institute and throughout the College of Textiles

It was a privilege to see both Parkdale Mills and the College of Textiles Centennial Campus in action. Meeting the students who are developing the future of the textile industry right here in North Carolina was a highlight of the trip. The current state of the textile industry is miles ahead of where it began and I look forward to the new innovations we will see in the near future.

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SelectUSA Brings Investment and Jobs to the United States

January 25, 2012

Barry Johnson is the executive director of SelectUSA and Aaron Brickman is the deputy executive director of SelectUSA

Did you see President Obama’s call to action to invest in America and boost job creation? Well if you missed it check out the White House blog post. Also at the forum, Commerce Secretary John Bryson moderated a panel discussion highlighting foreign direct investment (FDI) as an important source of economic and job growth in the United States.Bar chart showing the impact of Foreign Direct Investment in the United States in 2009. Increase in employmenet by 5%, GDP of 5.1%, Capital Investment of 12%, imports 31%, exports 21%, and research and development 14%. Source: Bureau of Economic Analysis

Currently, the United States is the largest recipient of FDI in the world. In 2010, FDI into the U.S. economy increased to $228 billion from $153 billion in 2009.While the United States has enjoyed this leadership position for decades, the share of FDI to the United States is decreasing. In the 1980s the FDI in the United States accounted for nearly 45 percent of the all foreign direct investment. Today, the United States accounts for less than 15 percent of total FDI flows.

At the Department of Commerce’s International Trade Administration (ITA) we are working to promote foreign direct investment in the United States because it is significantly impacts U.S. exports and jobs. U.S. subsidiaries of foreign companies are responsible for about 21 percent of all U.S. exports and support more than 5.3 million U.S. jobs – that’s about 5 percent of all U.S. employment!

Since taking office, the President has emphasized the unequivocal policy of openness to both foreign and domestic companies that invest in America. SelectUSA, which is housed within ITA, was created by President Obama in 2011 through an Executive Order to promote business investment in the United States.

The United States provides an ideal landscape for companies to build and grow their business. As the President reminded us, “companies are choosing to invest in the one country with the most productive workers, best universities, and most creative and innovative entrepreneurs in the world: the United States of America.”

And there is more. SelectUSA promotes the benefits of investing in the United States, including a strong system of intellectual property rights protection; unparalleled global access through trade agreements representing access to nearly 610 million worldwide consumers; and nearly 36 percent of global research and development expenditures taking place in the United States.

SelectUSA works with firms, economic development organizations, and other stakeholders to provide a comprehensive single point of contact for current and prospective business investors by:

  • Acting as an information clearinghouse and responding to inquiries about the U.S. business climate
  • Serving as ombudsman to help investors encountering confusion, delays or obstacles in a federal regulatory process
  • Advocating on behalf of the U.S. government in a globally competitive business location decision
  • Offering after care to companies that have U.S. investments

Companies and organizations use these services to help make business investment decisions when exploring the U.S. economy.

One of the companies in attendance at the White House forum, Canada-based AGS Automotive Systems, is a recent SelectUSA success story. The Company announced plans to manufacture bumper systems at an expanded facility in Michigan with an investment of $20 million.

Through the Commercial Service Canada’s introduction, SelectUSA met with AGS Automotive during its outreach visit to Toronto in September, 2011. Since then, SelectUSA has worked with AGS Automotive as the company evaluated its location decision among various options across North America.

Financial assistance and incentives offered by the State of Michigan were also pivotal in AGS Automotive’s investment decision. With these plans, the company will create 100 direct new jobs and retain its 50 existing jobs in the U.S. automotive sector.

The President also announced a new partnership between the Departments of Commerce and State to promote investment in the United States in ten priority countries through ITA’s Foreign Commercial Service and supported by U.S. embassies. A White House release explained:

“[t]his pilot effort will dedicate resources from Commerce’s Foreign Commercial Service (FCS) to investment promotion in 10 pilot countries representing 30 percent of foreign direct investment in the United States, expanding to cover 25 countries in 2013 representing roughly 90 percent of FDI.  U.S. Ambassadors will lead these efforts, engaging officials from State and other in country officials to assist investment promotion through business outreach, hosting ‘investment missions’ with governors and mayors, and connecting foreign firms to SelectUSA services.”

The pilot countries will be: Brazil, Canada, China and Hong Kong, France, Germany, India, Mexico, Russia, South Korea, and Spain.

Maintaining America’s industry competitiveness is an ongoing endeavor; however, with programs like SelectUSA, it’s much easier for companies of all sizes and from all business segments to make a sound decision to locate operations here.

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Exporting at the Speed of Light

January 23, 2012
This post contains external links. Please review our external linking policy.

Doug Barry is an International Trade Specialist in the Trade Information Center, part of the U.S. and Foreign Commercial Service

Two years ago he was laid off from his job at the height of the global financial crisis.  Eighteen months ago he started his own company with one employee:  himself.  Today he has 9 employees and is shipping wireless routers he makes to customers in almost 80 countries.

How’d he do it?

William Haynes owns Sabai Technology based in Simpsonville, South Carolina.

William Haynes owns Sabai Technology based in Simpsonville, South Carolina.

William Haynes owns Sabai Technology based in Simpsonville, South Carolina.  His success is due to a good product, timing, execution and some luck.  He also had crucial help from his friends at FedEx and the U.S. Department of Commerce.

He started selling routers to customers in the U.S.  Then he discovered a company that provided VPN service and who had customers overseas that wanted access to the Internet from devices throughout their household.  The company, Strong VPN, asked Haynes to make routers for them.  The first sale was to China, and orders soon took off to where international sales now account for 80 percent of revenues.

Haynes is not the only one making wireless routers, but he says he manages to compete with much larger technology-makers because of niche marketing ability and excellent customer service. “What you’ve got to do is make sure that front to back, from the time they place an order to the time customers get it in their hands and even after for technical support, that it’s seamless. That it’s well-communicated; that they have a certainty that when they’ve given you their money, they’re going to get their product; that they’re able to track it through the process.  To me, that’s the most important thing for successful exporting.”

Shipping to the middle of nowhere

To generate satisfied customers Haynes turned to FedEx.  “One of my favorite shipping stories  is when we shipped to the Faroe Islands.  FedEx handled it.  It was there, I think, in three or four days.  And if you’re not familiar with where the Faroe Islands are, it’s halfway between Iceland and Scotland out in the middle of nowhere.”

In another example, Haynes recalls: “We had a customer who ordered at 2:34 in the afternoon on a Monday afternoon to Sao Paulo, Brazil.  Well, 10 a.m. on Wednesday morning – less than 48 hours later, they’re contacting us letting us know they’ve gotten the router, it’s installed, it’s up – ‘thank you so much, how wonderful this is.’ “

Business really took off early in 2011 due to an unusual chain of events.  Haynes got a few orders from people in Egypt who understood the wireless routers could be used to send and receive information that was otherwise blocked by government filters. Said Haynes: “During the Arab Spring the technology allowed people to go to CNN and get news and information.  It allowed them to send emails knowing that from the time it leaves their home to the time it hits the U.S. or the country they’re connected to, it’s totally encrypted.”

To build Haynes’s sales more rapidly, a FedEx sales representative brought in the U.S. Commercial Service, a branch of the Commerce Department that helps U.S. companies find overseas buyers and plays a major role in the Obama administration’s National Export Initiative, which seeks to double U.S. exports by the end of 2014.  The typical U.S. manufacturing exporter sells to buyers in fewer than five overseas markets, so already Sabai Technology was atypical.  But Haynes knew that in addition to selling and sending one box at a time, he needed to develop distributors in key countries so that his sales volume increased at a more rapid rate.

The Commercial Service has Export Assistance Centers in more than 100 U.S. cities and market specialists in U.S. embassies in over 70 countries.  FedEx asked the Export Assistance Center in South Carolina to visit Haynes.  “It would have been years before I discovered these folks.  They came to visit me, to discuss the needs of Sabai Technology,” he said.

The visit prompted Haynes to use U.S. government export insurance and to advertise in a Commercial Service publication Commercial News USA, which goes to foreign buyers worldwide.  “Thanks to the magazine we have companies in countries like Zambia wanting to buy and distribute our product.”

Looks like Zambia will soon be Sabai Technology’s 81st export market, leaving only 45 more countries remaining to sell to by this self-effacing, self-described “babe in the woods” of exporting.  There’s little doubt that he has the determination and now the help to get there.

“I’m just a babe in this stuff, and to have someone hold my hand a bit and walk me through it – it’s going to really accelerate the growth of our international business.”

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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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2011 Export Success Highlights

January 13, 2012

The International Trade Administration helps thousands of companies every year and we’d like to highlight a few of our most recent success stories from this past year.

Sirchie of North Carolina wins $1.1 million contract with Brazilian government

Sirchie of Youngsville, North Carolina manufactures crime scene investigation kits and materials used by law enforcement officials worldwide. Sirchie contacted the U.S. Commercial Service office in Raleigh for assistance in selling law enforcement products to the government of Brazil.

Sirchie used a Gold Key Service, which would introduce them to prospective buyers in Brazil as well as give them the opportunity to meet with key industry officials and ministries, including local police and law enforcement. In advance of the Sirchie’s trip to Brazil, the trade specialists in the Commercial Service in Brazil also provided Sirchie with information on the government procurement process in Brazil and how Sirchie could tap into opportunities selling to the Brazilian government.

As a result of assistance from the Commercial Service, Sirchie won a Brazilian government tender and sold $1.1 million of export product to the Brazilian government.

Great Lakes Dredge & Dock Company of Illinois Wins $51 million project in Bahrain

This past November, Great Lakes Dredge & Dock Company, LLC (GDD, Oak Brook, IL) signed a contract with the Bahraini Ministry of Housing to provide dredging and land reclamation services for the East Hidd Housing Development project. GDD competed against companies from the Netherlands, Algeria, and China. The strong advocacy effort provided by the Commercial Service and the U.S. Embassy staff in Bahrain was key to the success of this advocacy campaign. The final project value was $57 million, with $51 million in U.S. export content, supporting 280 U.S. jobs.

Food Concessionaire, International Meal Company (IMC) of Massachusetts Overcomes Panamanian Trade Barrier

IMC, headquartered in San Juan, Puerto Rico, and Boston, Massachusetts, overcame a foreign trade barrier with the assistance of the Department of Commerce’s Trade Agreements Compliance Program, led by the Market Access and Compliance Unit that threatened to have its airport food‐court concession revoked.

IMC’s concessions in Panama are worth $6 million. After winning a bidding process and opening various food and beverage concessions at Panama’s Tocumen Airport, IMC’s multi‐million dollar investment was jeopardized by the Government of Panama’s failure to ratify its contract.

The International Trade Administration and the U.S. Embassy intervened on behalf of IMC with the Panamanian Government and Tocumen Airport Authority, urging the Panamanian Comptroller to review and ratify IMC’s contract for the food‐court concessions. Thanks to these efforts, the contract is now ratified, and IMC is able to continue its operations in Panama with contractual protection.

Garmin Marine Navigation GPS Units of Kansas Navigates Turkish Customs

Garmin of Olathe, Kansas, tapped into the resources of the International Trade Administration to ensure its $1.5 million worth of marine navigational GPS units cleared Turkish customs. Turkish customs claimed that the CE Mark Directive on Radio and Telecommunications Terminal Equipment (R&TTE) required that these products be tested and certified at a third-party lab recognized by the European Union (EU). However, the R&TTE Directive allows for the marine navigational GPS units imported by Garmin to be self‐certified.

ITA officials, working in close collaboration with the Commercial Service at the U.S. Embassy in Turkey, worked with Turkish government officials to explain that marine navigational GPS units can be self‐certified by an accredited independent lab, in compliance with the relevant EU standard. As a result, Turkish customs officials correctly assessed Garmin’s products and accepted its self‐certification.

Garmin reported in May that its most recent shipments to Turkey had gone through customs smoothly and the company does not anticipate any trouble getting these products into Turkey in the future.

These are but a few of the successful sales and logistical issues that the global staff of the International Trade Administration helped to realize for American businesses. To learn more about pursuing overseas markets or to get help resolving a market access issue, visit export.gov.

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

January 10, 2012

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

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

Just to name a few:

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

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

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

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

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

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

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

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

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

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Participants in the Renewable Energy Trade Mission to Turkey Find Business Partnerships

January 9, 2012

Ryan Barnes is an International Trade Specialist in the Office of European Country Affairs within the Market Access and Compliance division of the International Trade Administration.

Renewable Energy and Energy Efficiency Trade Delegation to Turkey, December 5-9, 2011

Renewable Energy and Energy Efficiency Trade Delegation to Turkey, December 5-9, 2011

Just last month, I accompanied Michael Camuñez, Assistant Secretary for Market Access and Compliance as he led 16 U.S. Renewable Energy & Energy Efficiency companies on a Trade Mission to Turkey. The delegation included U.S. energy firms as well as officials from Trade Promotion Coordinating Committee (TPCC) agencies: Export-Import Bank, Overseas Private Investment Corporation, U.S. Department of Energy and U.S. Trade and Development Agency. The delegation visited Ankara, Izmir and Istanbul, where numerous opportunities exist for these firms.

The staff of the International Trade Administration recruited a variety of companies for the mission.  The group included energy giants such as General Electric, Johnson Controls, and AES as well as nine small and medium-sized enterprises on the leading edge of renewable energy technology.  Of the sixteen firms, whose products range from solar panels to cooling systems, eleven had never before done business in Turkey.  One firm, World Business Capital, was also there to provide financing.

The mission’s main objective was to introduce the participants to potential Turkish business partners.  U.S. firms met with numerous Turkish counterparts in one-on-one meetings to discuss possible joint venture opportunities.  More than 340 of these business to business matchmaking meetings took place during the five-day mission.

The trade mission could not have come at a better time.  Bilateral trade between the U.S. and Turkey is set to break records in 2011, with projections of roughly $20 billion in total trade.  And the energy sector, in particular, is ripe for U.S. trade and investment.  Turkish energy demand is due to grow at a rate of seven to nine percent annually.  To help accommodate this growing demand, the Turkish government will invest roughly $130 billion by 2023, and has placed a great deal of emphasis on renewable energy.  Ankara has plans to achieve 30 percent renewable energy production by 2023, and has called for $40 billion in investment in this sector by 2020. Turkey also passed an updated renewable energy law in December 2010 to provide even further investment incentives.

The U.S. Government has worked to develop this burgeoning market.  In addition to the trade mission, there is a newly launched interagency project known as the “Near Zero Zone”.  This project, led by the U.S. Department of Energy, is helping industrial companies operating within the Izmir Ataturk Organized Industrial Zone (IAOSB) reduce their energy usage through a series of cost-effective efficiency upgrades.  One of key stops during the trade mission was to this Near Zero Zone site in Izmir.

The trade mission, along with the Near Zero Zone, helped with the formation of business partnerships and provided opportunities to match high quality U.S. supply with growing Turkish energy demand.  The potential for mutual gain in this arena is enormous.  Already, trade mission participants have reported a potential $40 million in business deals.   We hope this is just the beginning.

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