A message brought to you by the Office of Textiles and Apparel (OTEXA) at the International Trade Administration. OTEXA is dedicated to increasing the international competitiveness of the U.S. textiles, apparel, footwear, and travel goods industries.
A trade barrier can be broadly defined as a foreign government policy, practice, or procedure that unfairly or unnecessarily restricts U.S. exports. The following are some common foreign government-imposed trade barriers that U.S. companies encounter abroad:
The Office of Trade Agreements Negotiation and Compliance (TANC) at the International Trade Administration (ITA) works to break down barriers to trade abroad and monitors and helps promote foreign government compliance with trade agreement obligations. By leveraging relevant trade agreements, ITA engages foreign governments to remove or mitigate barriers to trade as quickly as possible.
If you think you may be experiencing a trade barrier, report your issues as soon as possible.
Brought to you by the Office of Textiles and Apparel (OTEXA) at the International Trade Administration, the Market Diversification Tool can help identify potential new export markets.
OTEXA is dedicated to increasing the international competitiveness of the U.S. textiles, apparel, footwear, and travel goods industries.
Based on the products you export and the markets you currently export to, the tool uses an algorithm to rank potential markets you may want to consider as future export markets.
The algorithm used to develop the ranking does three main things:
- Compares potential export markets to the market where you are already exporting, based on the premise that it may be easier to export to similar countries.
- Examines product-specific trade data to see whether potential markets are primed for more U.S. exports of the product(s) in question.
- Considers data that reflects whether potential export markets are generally good markets for exporting and doing business.
On March 31, 2021, the Office of the United States Trade Representative released the 2021 National Trade Estimate Report
Published annually since 1985, the NTE Report is a comprehensive review of significant foreign trade barriers affecting U.S. exports of goods and services. The 570-page report examines 65 trading partners and country groups, including the U.S.’ largest trading partners, all 20 U.S. FTA partners, and other economies and country groupings of interest such as the Arab League, the United Kingdom (included as a separate entity for the first time in this report), and the European Union. Together, these economies account for 99 percent of U.S. goods trade and 87 percent of U.S. services trade.
The NTE Report covers significant trade barriers in 11 areas, including (1) import policies such as tariffs, import licensing and customs barriers; (2) technical barriers to trade; (3) sanitary and phytosanitary measures; (4) subsidies; (5) government procurement; (6) intellectual property protection; (7) services barriers; (8) barriers to digital trade and electronic commerce; (9) investment barriers; (10) competition; and (11) other barriers.
Taken as a whole, the NTE Report highlights significant barriers that present major policy challenges with implications for future U.S. growth opportunities, and the fairness of the global economy.
This report discusses the largest export markets for the United States, covering 61 countries, the European Union, Taiwan, Hong Kong, and the Arab League. The discussion of Chinese trade barriers is structured and focused to align more closely with other Congressional reports prepared by USTR on U.S.-China trade issues. The China section includes cross-references to other USTR reports where appropriate. As always, omission of particular countries and barriers does not imply that they are not of concern to the United States.
See how the U.S. Department of Commerce Office of Textiles and Apparel helped CTF Enterprises increase sales across several international markets.
CTF Enterprises is a small business in Portland, Oregon that has a vision: to revolutionize the way the world repairs zippers. FixnZip, its unique patented product, is a universal zipper slider that can repair zippers anywhere without tools or sewing.
In 2015, CTF Enterprises reached out to OTEXA to help market their product and to grow internationally. That year, the company participated for the first time in OTEXA’s Sample Booth at the Defense and Security Equipment International (DSEI) in London, UK. Since then, CTF Enterprises has participated in nearly a dozen events with OTEXA.
The company’s sales have increased exponentially since it first launched in 2015. CTF Enterprises now has more than a dozen international distributors worldwide and sells in 16 countries. With international distribution systems and partners in place, the company continues to experience strong international sales growth and brand recognition.
In spite of major challenges caused by the COVID-19 pandemic, CTF Enterprises reported historic sales for 2019 and 2020. The company's success can be attributed to its ability to sell in multiple markets and not being reliant on a single domestic .market.otexamadeinusa@trade.gov.
Contact OTEXA at otexamadeinusa@trade.gov.
Important information brought to you by the Office of Textiles and Apparel (OTEXA) at the International Trade Administration. OTEXA is dedicated to increasing the international competitiveness of the U.S. textiles, apparel, footwear, and travel goods industries.
The U.S. Small Business Administration (SBA) administers a State Trade Expansion Program (STEP). This program provides financial awards to state and territory governments for the sole purpose of assisting small businesses with export development.
Use STEP Awards funds to:
- Learn how to export
- Participate in foreign trade shows
- Obtain services to support foreign market entry
- Develop websites to attract foreign buyers
- Design international marketing products or campaigns
To find out if your state has STEP funds available or if you are eligible to apply, contact the STEP director in your state/territory via phone or e-mail to learn about the next steps to apply.
Join the Textiles, Apparel and Sporting Goods Team of the U.S. Commercial Service Thursday, March 11, 2021, for a panel discussion with German market experts within the Sporting Goods industry to discuss:
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- Current Business Environment
- Consumer Demand
- Market Trends
- Business Requirements
- Matchmaking Opportunities
The United States Consul General in Munich. Meghan Gregonis, welcomes you to join her discussion with:
- Kim Scholze – Community Manager Outdoor (ISPO) / Messe München
- Dr. Jochen Schäfer – Attorney-at-law and Legal Counsel to the WFSGI
- Sebastian Steinbach – owner of Black Sheep Sports
Hosted by the United States Consul General in Munich, Meghan Gregonis, and the U.S. Commercial Service Germany in collaboration with the Global Textiles, Apparel, and Sporting Goods Team. This extension of our Bridge Session Series will give you the most up-to-date and relevant information on the Sporting Goods Sector in Germany.
The U.S. Commercial Service's Global Textiles, Apparel, and Sporting Goods Team invites U.S. exporters to join them for a "virtual coffee chat" with our U.S. Embassy and Consulate colleagues in Turkey, Germany, Czech Republic, and Portugal. This informal video discussion is through Microsoft Teams. The session will cover the current status of the technical textiles sector in these countries. Tuesday, February 9th, 2021, 11am U.S. Eastern Time.bla
Register HERE.
Why Turkey?
In 2019, Turkey imported $2.2 billion USD of technical textiles. Technical textiles have wide applicability in Turkey in the automotive, construction, defense, aerospace, energy, and life sciences industries. There are also opportunities in Turkey for U.S. technical textiles machinery.
Why Germany?
Germany has become the 4th largest market for U.S. technical textiles. Technical textiles is the fastest-growing industry in Germany, with opportunities for U.S. producers of high-end, leading-edge solutions in key sectors, such as automotive or life sciences.
Why Czech Republic?
There is growth in the textiles industry in the Czech Republic for products to be used in the automotive, agriculture, healthcare, and aviation sectors. The automotive industry, in particular, is expanding, creating opportunities for supplying this sector. There is also an opportunity for U.S. producers of automation solutions to sell to Czech textile manufacturers.
Why Portugal?
Despite positive conditions in the Portuguese textiles sector, local production is small, and therefore Portugal imports from several countries, including the U.S. In 2018, imports from the U.S. of textile products specific for technical uses increased 80% compared to 2017
For those textile companies involved in defense contracting, the Southeastern New England Defense Industry Alliance (SENEDIA) is sponsoring a virtual “tech talk” this Thursday at 9:00 AM that will explain potential export opportunities for defense companies, as well as detail state and federal support services in this area. Further details and registration information is in the below e-blast from SENEDIA.
SENEDIA Tech Talk - Export Opportunities for Defense Companies
14 January 2021 – 0900-1100
Microsoft Teams Meeting – Registration Link - https://tinyurl.com/y3bnf2kq
NOTE: Remember to save the Meeting Link you are provided after you register! (Suggest you create a calendar meeting maker and save it there.)
Join us for this unique opportunity to gain insight into potential export opportunities for Defense companies and an understanding of the related federal and state supporting services.
The Tech Talk will include:
Molly Magee, Executive Director SENEDIA – Welcome and introduction.
Keith Yatsuhashi, Director U.S. Commercial Service Providence, will provide an overview of the US Department of Commerce export services.
Kathy Therieau, Director, International Trade Programs, RI Commerce Corporation, will provide an overview of Rhode Island export services (trade missions, shows, STEP, etc.
Robert McEntire, Senior International Trade Specialist, Office of Transportation and Machinery, International Trade Administration, US Department of Commerce, will provide an overview of some advantageous markets for defense companies.
Tom Kallman, President, Kallman Worldwide Inc., will provide an overview of Kallman programs and services.
The presentations will be followed by a Q&A session.
The U.S. Commercial Service's Global Textiles, Apparel, and Sporting Goods Team invites U.S. exporters to join them for a "virtual coffee chat" with our U.S. Embassy and Consulate colleagues in Turkey, Germany, Czech Republic, and Portugal. This informal video discussion is through Microsoft Teams. The session will cover the current status of the technical textiles sector in these countries. Tuesday, February 9th, 2021, 11am U.S. Eastern Time.bla
Register HERE.
Why Turkey?
In 2019, Turkey imported $2.2 billion USD of technical textiles. Technical textiles have wide applicability in Turkey in the automotive, construction, defense, aerospace, energy, and life sciences industries. There are also opportunities in Turkey for U.S. technical textiles machinery.
Why Germany?
Germany has become the 4th largest market for U.S. technical textiles. Technical textiles is the fastest-growing industry in Germany, with opportunities for U.S. producers of high-end, leading-edge solutions in key sectors, such as automotive or life sciences.
Why Czech Republic?
There is growth in the textiles industry in the Czech Republic for products to be used in the automotive, agriculture, healthcare, and aviation sectors. The automotive industry, in particular, is expanding, creating opportunities for supplying this sector. There is also an opportunity for U.S. producers of automation solutions to sell to Czech textile manufacturers.
Why Portugal?
Despite positive conditions in the Portuguese textiles sector, local production is small, and therefore Portugal imports from several countries, including the U.S. In 2018, imports from the U.S. of textile products specific for technical uses increased 80% compared to 2017
On November 9, 2020, United States Trade Representative Robert E. Lighthizer responded to the announcement by the European Union imposing tariffs on certain products from the United States.
“The United States is disappointed by the action taken by the EU today,” Ambassador Lighthizer stated. “The alleged subsidy to Boeing was repealed seven months ago. The EU has long proclaimed its commitment to following WTO rules, but today’s announcement shows they do so only when convenient to them.”
Background
As part of a 16-year-old litigation involving large civil aircraft, the EU alleged that a certain Washington State tax provision benefited Boeing. In response to a WTO panel decision, Washington State unambiguously repealed this tax provision on April 1, 2020. Under such circumstances, a WTO member cannot unilaterally impose retaliatory tariffs on a trading partner.
The USTR is in negotiations with the EU with the hope of resolving this longstanding dispute relating to large civil aircraft.
On March 31, 2020, the Office of the United States Trade Representative released the 2020 National Trade Estimate Report
The National Trade Estimate Report on Foreign Trade Barriers (NTE) covers 63 countries, customs territories and regional associations, including each of the 20 United States’ free trade agreement (FTA) partners and all of the 50 largest markets for U.S. goods exports. These partners together account for over 95% of the United States’ $5.5 trillion in two-way goods and services trade. The NTE Report reviews each in detail, highlighting concerns regarding issues ranging from industrial tariffs and import licensing to digital data flow, customs, agricultural quotas, industrial subsidies, restrictions on provision of telecommunications services, and more.
Each year’s edition of the NTE Report changes and evolves. Sometimes this reflects the creation of new barriers to U.S. exports, and at other times new conceptual challenges and opportunities arising from the progress of science, technology, and logistics. Changes in the NTE Report from one year to the next also reflect the success of U.S. negotiations and enforcement efforts. Such successes have been worldwide since the publication of the 2019 NTE Report, highlighted by examples including:
WESTERN HEMISPHERE
Canada and Mexico – United States-Mexico-Canada Agreement (USMCA): The USMCA represents a generational, comprehensive revision of the old North American Free Trade Agreement. In addition to landmark revisions of automotive rules of origin, state-of-the-art labor and environmental provisions, and 21st-century digital trade rules, the USMCA contains numerous provisions that – once in force – will address outstanding trade-related irritants with Canada and Mexico. For example, under the USMCA and related instruments, Canada agreed to eliminate milk classes 6 and 7, discriminatory grading of U.S. wheat, and British Columbia’s discriminatory treatment of U.S. wine in grocery stores. The USMCA also includes obligations to strengthen enforcement against counterfeiting and piracy, camcording of movies, satellite and cable signal theft, transparency with respect to new geographical indications, and copyright protection and enforcement in the digital environment. The USMCA also cracks down on data localization measures for services providers and financial services providers and locks in Mexico’s telecommunications and energy reforms.
Colombia – End of the “1x1” Truck Scrappage Policy: Due to U.S. engagement and enforcement efforts, Colombia ended the “1x1” truck scrappage policy on June 30, 2019. In March 2013, the Colombian government eliminated an option to pay a “scrappage fee” to legally register a heavy truck (over 10.5 metric tons) in Colombia, which negatively affected previously robust sales of imported trucks (which were generally over 10.5 metric tons).
EUROPEAN UNION
Technical Standards for Certain Heavy Electrical Products: The EU's requirements for restricting hazardous substances in electronic and electrical products are burdensome and arbitrary, and force companies to pursue an onerous and lengthy exemption process. In 2017, companies applied for exemptions to continue to use two substances (DEHP phthalate in rubber and lead in solder) that would have otherwise been banned in 2019 in engines, because there are no viable alternatives that provide the necessary flexibility in rubber and heat-resistance in solder. Following engagement by the U.S. government and industry, the EU approved in September 2019 the continued use of those two substances in engines for an additional five years. Those exemptions were fully implemented by EU member states in early 2020.
MIDDLE EAST
North Africa Markets Open to U.S. Beef, Poultry, Eggs, and Genetics: In April 2019, the United States and Tunisia finalized U.S. export certificates to allow imports of U.S. beef, poultry, and egg products into Tunisia. In June 2019, the United States and Morocco completed export certificates for U.S. processed eggs and beef genetics to Morocco, and reached agreement to improve U.S market access under the U.S.-Morocco FTA tariff rate quotas.
SUB-SAHARAN AFRICA
Ghana – Automobile Standards: In 2019, Ghana proposed measures that would only recognize automobile standards developed by the Economic Commission for Europe (ECE) as international standards. The proposal would have moved towards the wide adoption of the ECE standards and regulations as equivalent and significantly narrow the acceptance of U.S. Federal Motor Vehicle Safety Standards (FMVSS). The United States provided comments and background information on FMVSS and their use. Following U.S. action, Ghana agreed to incorporate U.S. standards into its new standards policy, which are pending publication by the Ghana Standards Authority.
Standards Alliance Implementation with USAID: USTR worked with USAID to implement the Standards Alliance, a public-private partnership that provides technical assistance to developing countries and regions to help ensure that those countries’ standards-related measures do not impose unnecessary obstacles to trade and comply with other important obligations under the WTO TBT Agreement. In 2019, the Standards Alliance operated in five sub-Saharan African countries: Côte d’Ivoire, Ghana, Mozambique, Senegal, and Zambia. The programs included workshops to increase the application of good regulatory practices, the use of international standards in regulations, and the use of regulatory impact assessments. These procedures help to reduce unnecessary obstacles to U.S. trade by ensuring, for example, that proposed regulations are made available for public comment and that potential impacts of proposed measures are analyzed and taken into account.
CHINA AND TAIWAN
China – Historic “Phase One” Agreement: The United States and China reached an historic Phase One agreement that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange. The Phase One agreement also includes a commitment by China to make substantial additional purchases of U.S. goods and services in the coming years. Importantly, the agreement establishes a strong dispute resolution arrangement that ensures prompt and effective implementation and enforcement. At the same time, the United States maintains tariffs on many Chinese goods while monitoring and additional negotiations continue.
Taiwan – Adoption of Mechanism for Early Resolution of Potential Patent Disputes: In August 2019, following sustained engagement by USTR, final implementing regulations for Taiwan’s December 2017 amendments to the Pharmaceutical Affairs Act entered into force. The establishment of a mechanism for early resolution of potential patent disputes, including coverage for biologics, represents a promising step forward for Taiwan in its efforts to develop an innovative pharmaceutical sector. Taiwan – Passage of Amendments to Trade Secrets Act: On December 31, 2019, Taiwan passed amendments to the Trade Secrets Act that provided authority to prosecutors to issue protective orders during investigation proceedings. These changes, long sought by USTR, are expected to improve Taiwan’s ability to effectively prosecute cases of trade secrets theft by protecting information from unauthorized disclosures.
JAPAN
New Access in Japan for U.S. Agricultural Exporters: The U.S.-Japan Trade Agreement, which entered into force on January 1, 2020, further opens a critically important market for U.S. food and agricultural goods exporters, including through the reduction or elimination of tariffs or allowance of a specific quantity of imports from the United States. This agreement eliminates many long-standing barriers and ensures that over 90% of U.S. food and agriculture exports have access to Japan either on a duty-free or other preferential basis.
U.S.-Japan Digital Trade Agreement: The U.S.-Japan Digital Trade Agreement, which also entered into force on January 1, 2020, parallels the USMCA as the most comprehensive and high-standard trade agreement addressing digital trade barriers ever negotiated. The Agreement covers over $40 billion in digital trade between the United States and Japan. It incorporates strong rules prohibiting data localization measures, including for financial services data, and ensuring that data can be transferred across borders by all suppliers, as well as rules ensuring non-discriminatory treatment of digital products, and protecting against forced disclosure of proprietary source code and algorithms.
Access for Passenger Airlines: Following amendment of the 1952 U.S.-Japan Civil Air Transport Agreement in March 2020, Japan opened up 12 new slot pairings for U.S. passenger airlines at Tokyo's Haneda Airport, significantly improving access at commercially viable times long sought by U.S. air carriers.
SOUTHEAST ASIA
Vietnam – Automobile Regulations: After the United States raised concerns, Vietnam rescinded a decree that required lot-by-lot testing and replaced it with a new program that requires autos to be tested by model. Vietnam revised its auto import testing regulatory system, which now facilitates the import of U.S.-manufactured autos.
The U.S. International Trade Commission has published its annual examination of trends in U.S. trade describing the global macroeconomic conditions for the year, as well as changes within 10 industry sectors and a number of possible reasons for these changes. The report also contains a "special topic" chapter, which details certain trade actions in 2018 and the trade shifts that occurred following these actions.
Contents
Part I: Introduction
Part II: Country Shifts
Part II provides interactive graphics for shifts in trade between the United States and five key trading partners:
The Commission selected Canada for the interactive graphics because it was the United States’ second-largest trading partner based on exports plus imports in 2018. Likewise, the Commission selected South Korea because it had the largest increase in its trade balance with the United States (exports minus imports). Finally, the Commission selected China, Mexico, and Japan because these countries registered the largest absolute or relative increase in U.S. exports or imports in 2018.
Part III: Sector Shifts
Part III analyzes shifts in trade for the following 10 industry sectors:
Part IV: Special Topic:
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