Tradeology, the ITA Blog

Paul Taylor is the Senior Commercial Officer at the U.S. Embassy in Manila, Philippines

This is the fourth piece in a blog series about different markets that will be featured during Trade Winds 2023.

The United States and the Philippines have had a very close trade relationship for more than a hundred years. With a bilateral trading relationship valued at over $30 billion annually, the Philippines punches above its weight when compared against that of much larger neighboring countries in Southeast Asia. Furthermore, thanks to our deep cultural, economic, and historical ties, Filipino customers and businesses tend to be knowledgeable and avid consumers of American products. U.S. companies interested in doing business or expanding into the dynamic Indo-Pacific market should strongly consider the Philippines.

The United States is among the Philippines’ top three trading partners and is one of the largest foreign investors which contributes to employment and economic growth across the archipelago. The Philippines’ largest export by value is semiconductor chips, tested, assembled, and packaged in the Philippines for international markets, and a large number of U.S.-based semiconductor manufacturers help train Filipino workers, increasing access to high-paying jobs and helping drive the country’s economy. Estimates are that the Philippines will spend approximately $4.4 billion on digital infrastructure over the next six years, which also offers U.S. companies in the information and communications technology and cybersecurity sectors numerous opportunities to export goods and services.

Defense and Security

The U.S.-Philippines partnership in defense and security is rapidly becoming a critical pillar of our security cooperation in the region. For U.S. companies with security and defense technology and equipment, this creates many areas of opportunity to partner with the Armed Forces of the Philippines. The Filipino security forces are well-trained, highly efficient, and have a strong preference for U.S. equipment and modernized technology. Your contacts at the U.S. Embassy in Manila can provided unparalleled access to key decision makers with the Armed Forces and within the Department of National Defense.

Clean Tech, Transportation and Healthcare

Clean energy and tech, transportation infrastructure, and healthcare sectors are all growing prospects for U.S. companies. For example, through the country’s “Build, Build, Build” infrastructure program, U.S. firms can sub-contract through key suppliers or engage in public-private partnership projects that advance upskilling and the digital economy alongside a Philippine partner when competing for public tenders.

Trade Winds

As a way to provide export opportunities for U.S companies in this region, we at the International Trade Administration (ITA) look forward to hosting a Trade Winds mission stop in Philippines on March 9, 2023 as part of the Trade Winds Trade Mission and Business Forum. There is still room for interested businesses to participate at the Business Forum in Bangkok which will take place from March 13-15, 2023. For more information, and to sign up, visit the Trade Winds ASEAN website.

In the coming months, the Commercial Section of the U.S. Embassy in Manila will be creating programs specifically focused on expanding U.S. access to market opportunities in commercial space, health care, telecommunications, agricultural technology, and defense and security. To learn more, contact businessphilippines@trade.gov.

Jennifer Knight is ITA’s Deputy Assistant Secretary for Textiles, Consumer Goods, Materials Industries, Critical Materials, and Metals

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As National Human Trafficking Prevention Month comes to a close, it’s crucial we remember that human trafficking is a global and domestic issue that harms the most marginalized and vulnerable members of society. It deprives individuals of their rights, freedoms, safety, and dignity. Human trafficking also impacts and compromises national and economic security. According to the latest numbers from the International Labor Organization, about 28 million people around the world who are trapped in forced labor are victims of human trafficking.

Forced labor is well documented in every sector of the supply chain and private economy, particularly in agriculture, fishing, manufacturing, construction, and domestic work. U.S. law holds liable any person or business that benefits financially from its involvement in human trafficking, provided that the business knew or should have known of the scheme. Thus, it’s incumbent upon us to do our due diligence and not engage in activities that directly or covertly support human trafficking or forced labor.

As part of his National Human Trafficking Prevention Month proclamation, President Biden calls on businesses, civil society organizations, and all Americans “to counter injustice and fortify our commitment to pursue dignity and freedom for all people.” To help U.S. businesses understand risks in their supply chains, ITA and our federal partners developed an important training module, Human Trafficking: Forced Labor in Global Supply Chains, to help companies monitor their supply chain’s compliance with laws and regulations, identify red flags, and develop due diligence plans. This is a free training, and I encourage all businesses, especially smaller and medium-size firms with fewer resources, to take it.

As government employees involved in global commercial trade, we are in a unique position to not only be aware of forced labor human trafficking but to report it. ITA employees have a similar training available to them, and I encourage my colleagues in public service to also take this training.

Learn more about human trafficking prevention and 20 ways you can help fight human trafficking.

Christopher Quinlivan is a Senior Commercial Officer at the U.S. Embassy in Singapore. 

This is the first piece in a blog series about different markets that will be featured during Trade Winds 2023. 

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

U.S. businesses looking to boost their bottom line by making new export sales are increasingly looking to Singapore as a place to do business. A gateway to Southeast Asia with a business-friendly environment, Singapore offers excellent opportunities for U.S. firms, including small and medium-sized companies.   

To this end, the U.S. Commercial Service in Singapore looks forward to hosting a Trade Winds mission stop, as part of the larger Trade Winds Trade Mission and Business Forum from March 13-15, 2023 in Bangkok, Thailand. Mission stops include business-to-business matchmaking meetings with pre-screened buyers, agents, distributors, or joint-venture partners.  

As the United States’ largest trading partner in Southeast Asia, Singapore has a proven track record as a welcoming center for business. More than 2,500 American companies already do business in Singapore, and many use it as a base for regional business. The United States is the leading source of foreign direct investment (FDI) for Singapore, with nearly $295 billion in FDI stock, more than five times that of China. In recent years, Singapore has become a leading investor in the United States, as well, and current Singapore FDI stock in the United States exceeds $30.2 billion.

In addition, Singapore is a U.S. Free Trade Agreement partner and is unique in its high level of development, including infrastructure, rule of law, IP protections, and ease of doing business. The World Bank’s 2020 Doing Business report ranked Singapore second overall in the world in “ease of doing business,” while the World Economic Forum ranked Singapore as the most competitive economy globally. U.S. products and services are well received in Singapore; however, the market is very competitive and highly regulated. 

A small city-state roughly the physical size of New York City, Singapore’s wealthy population nears about 6 million people. English is the primary language spoken there. Exporters will find proven market opportunities for a wide range of products and services, including consumer goods, high-tech business solutions and services, machinery, electrical machinery, aircraft, optical and medical instruments, and mineral fuels. 

The Singapore mission stop will be held on March 10th, and 20 participants are expected to attend. Although the business-to-business matchmaking meetings are currently at capacity, interested companies may still register for the Business Forum in Bangkok. For more information, and to sign up, go here, then click REGISTER to continue. When prompted, select Business Forum Only. The registration fee is $750 per attendee.  

Beyond Trade Winds, there are also several other trade events for U.S. companies interested in exploring the Singapore market. Please also feel free to reach out to your local Commercial Service office for further information and opportunities to explore Singapore and other markets across Southeast Asia. 

Other Upcoming Trade Events in Singapore 

April 25-28, 2023: FHA Food & Beverage offers an exemplary experience underlined by the most wide-ranging food & drink products and innovations that are top and trending across the globe. More than 70% of exhibitors are made up of direct manufacturers and as many as 15% are expected to use this platform as a launch pad for new-to-market innovations. FHA-Food & Beverage will provide global suppliers with valuable access to quality buyers including distributors, importers, manufacturers and retailers, and attendees will also gain valuable insights into developments and future trends of the food & beverage industry. 

May 3-5, 2023: IMDEX Asia is Asia’s leading naval and maritime defense event that gathers the world’s naval elite and the finest fleets of maritime innovations. Since its inaugural edition in 1997, the maritime and defense exhibition has steered forward at the helm of the industry, becoming a platform for businesses of the sea to debut its latest vessels, systems and technologies. With established conferences and real-time discussions on maritime security, IMDEX Asia continues to draw a plethora of global leaders and distinguished guests for each edition. 

June 6-9, 2023: Asia Tech x Singapore (ATxSG) is Asia’s flagship tech event where technology intersects with society and the digital economy. ATxSG features anchor events that include BroadcastAsia, CommunicAsia, SatelliteAsia and TechXLR8 Asia. Exhibits span a variety of technologies and sectors, including electronic media, audio, graphics & animation, artificial intelligence, augmented reality/virtual reality, and others.

Hugh Smachlo is an Import Policy Analyst in the Enforcement and Compliance Industry Monitoring and Analysis Unit

Aluminum is a hot trade topic to watch in 2023. A new tool is now available to help industry analysts track data and trends for the largest aluminum importing and exporting countries. This week, ITA released the Global Aluminum Trade Monitor (GATM), the first publicly available data visualization tool  for comparative analysis that provides insight into the global aluminum industry and its impacts on U.S. producers and importers.  

Since 2001, the number of primary (non-recycling) aluminum smelters in the United States has dwindled from 23 to 5. Primary aluminum smelters use unrecycled, raw material to make high-purity aluminum used in nearly every aluminum product, including cars, infrastructure, aerospace, packaging, and consumer goods. They are a critical link in many of these supply chains.

A drastic reduction in the number of American aluminum smelters could erroneously indicate that the U.S. demand for aluminum has dropped, or that the U.S. aluminum industry has suffered a dearth of investment; however, neither is the case. Since 2013, the U.S. aluminum industry has invested more than $7 billion in domestic manufacturing, and global aluminum demand has spiked as a result of climbing interest in recyclable and lightweight materials like aluminum.

The newly released GATM dashboard sheds light on this issue by indicating where there is demand for aluminum. Among its thousands of customizable charts, its “Top Partner Countries” comparison feature allows users to see aluminum import or export flows to or from a selected country. While globally China’s share of aluminum production increased from 12% to 60% from 2012 to 2021, the GATM comparison tool shows that its aluminum exports were concentrated in five countries: the United States, Vietnam, South Korea, Mexico, and Thailand. GATM reveals the ripple effects of China’s voluminous global exports on the U.S. aluminum industry, which, paired with an increase in unfair trade practices, caused the U.S. aluminum industry to seek trade remedies.

In 2021, based on requests from the domestic aluminum industry and following rigorous investigations, Commerce put in place antidumping and/or countervailing duty (AD/CVD) orders on common alloy aluminum sheet (CAAS) from 16 countries, and AD/CVD orders on aluminum foil (foil) from five countries. These trade remedies build upon the already existing AD and/or CVD orders on CAAS and foil from China and give the U.S. industry the opportunity to compete on a level playing field against unfair foreign pricing and subsidization.

GATM visualizations also provide a glimpse into another region’s rippling impact on the U.S. aluminum industry. Since 2012, the Middle East has emerged as a major aluminum-producing region due to an abundant supply of low energy costs and efforts there to diversify national economies. For example, on the first tab titled “GATM,” users can see that United Arab Emirates, Bahrain, and Oman’s total exports to the U.S. increased 190% between 2012 and 2018.

These two images, amongst the thousands of publicly available and customizable charts in the GATM, provide necessary context for understanding global aluminum trade flows and their impact on the U.S. industry. Furthermore, they help to explain, in part, the status of the U.S. as a net importer of aluminum products for each of the seven standard subcategories: bars, rods, and profiles; foil; pipes and tubes; plates, sheets, and strip; tube or pipe fittings; unwrought; and wire.

Ensuring the aluminum industry has the data it needs, the GATM comes at a critical moment for the United States and for our aluminum industry and workers. The domestic aluminum industry directly employs 164,000 American workers and indirectly supports an additional 470,000 workers, accounting for $73 billion dollars in U.S. economic output. 

This is one of many tools that ITA provides U.S. companies to make informed decisions based on solid information about global markets.

For additional information, please e-mail aluminum.license@trade.gov.