Archive for the ‘Trade Advisory’ Category

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Meeting the Challenge of Supply Chain Infrastructure Competitiveness

December 7, 2011

With the recent announcement of a new advisory committee on supply chain competitiveness, the Department of Commerce is looking to work closely with U.S. industry to identify ways of improving the movement of goods.

Russell Adise is an international trade specialist in the International Trade Administration’s Manufacturing and Services unit.

An important step in assuring the integrity of U.S. supply chain infrastructure was taken on November 3, 2011, when Secretary of Commerce John Bryson and Francisco Sánchez, under secretary of commerce for international trade, announced the establishment of the Advisory Committee on Supply Chain Competitiveness. Through this committee, the secretary of commerce will receive guidance and input from supply-chain firms and associations, stakeholders, community organizations, and others directly affected by the supply chain, as well as experts from academia, from throughout the United States on the development and administration of programs and policies to expand U.S. export growth and foster the competitiveness of U.S. supply chains in the domestic and global economy.

Bayonne, New Jersey port looking over New York City and the Statue of Liberty (photo courtesy istock/Janine Lamontagne

Bayonne, New Jersey port looking over New York City and the Statue of Liberty (photo courtesy istock/Janine Lamontagne)

Crucial Link in Trade

U.S. supply chains are a crucial link between the country’s exporters and the global economy. Every export, and every export-related job, is dependent on the operations and processes that comprise the nation’s supply chains, from material sourcing, to product manufacturing, to consumer delivery. U.S. export competitiveness depends on the smooth, seamless, and rapid movement of goods through the supply chains from beginning to end. Any chokepoint can result in missed exports, lost sales, higher costs, and lost jobs.

The declining state of U.S. infrastructure has become an increasing challenge to exporters. Systemic, long-term infrastructure deficiencies have a dramatic, negative impact on the speed and predictability of the movements of goods around the country. Shippers blame this situation on the lack of a comprehensive national freight infrastructure development and investment policy. They also assert that the United States is not improving its infrastructure fast enough to keep pace with the export demands of 21st century supply chains.

These infrastructure deficiencies pose challenges not only to individual exporters, but also to the success of the National Export Initiative, a federal initiative established by President Barack Obama in 2010 to achieve his goal of doubling U.S. exports by the end of 2014.

Regional Outreach

The advisory committee is a key piece of a larger Department effort to address the challenges of supply chain infrastructure, organized by the International Trade Administration’s Office of Service Industries, a part of ITA’s Manufacturing and Services unit. In 2010, ITA spearheaded the creation of the Competitive Supply Chain Infrastructure Initiative. This brings together federal and private-sector stakeholders to develop policies that will improve the efficiency and connectivity of U.S. supply chain infrastructure. As part of the initiative, then-Secretary of Commerce Gary Locke and Secretary of Transportation Ray LaHood signed a memorandum of understanding in April 2010.  It committed the two agencies to undertake a series of freight stakeholder outreach forums. Since September 2010, five such events have been held throughout the country: in Atlanta, Georgia; Chicago, Illinois; San Diego, California; Kansas City, Missouri; and Seattle, Washington. These have allowed the two federal agencies to widen their knowledge of each region’s top freight infrastructure issues. Additional events are planned for 2012.

How to Apply

U.S. citizens engaged in international trade or supply chain competitiveness issues are eligible to apply to be members of the new Advisory Committee on Supply Chain Competitiveness. Nominations must be received by December 14, 2011. For more information, see the notice published in the Federal Register at 76 FR 68159 or contact Richard Boll of the International Trade Administration, tel. (202) 482-1135; e-mail: richard.boll@trade.gov.

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The President’s Export Council Visits Capitol Hill

July 20, 2011

Dominique Griffith is an intern for the International Trade Administrations’ Office of Advisory Committees. He is a rising senior at American University, studying International Relations.

Last week, staff representatives of the President’s Export Council (PEC) along with administrative officials held staff briefings on Captiol Hill on the role of the PEC and its recent work. The PEC is the principal advisory committee on international trade to the executive branch. These briefings, which were done separately for the House of Representatives and the Senate, addressed the PEC’s background (the administration, the private sector, and the congressional role), trade policy, export assistance, small business and workforce assistance, and success measuring for U.S. businesses.

Our staff representative for Xerox pointed out that when, the CEO of Xerox, Ursula Burns, was asked to be the Vice Chair of the PEC she wanted make sure this particular PEC focuses on “measurement and accountability.” In other words, she did not want the PEC to only discuss ideas on how to help U.S. exporters, she wanted to see action. She also wanted to have this action recorded and measured. The PEC has requested this measuring trend so that the Administration can truly see action and progress on policies for which businesses have been advocating.

As an intern for ITA’s Office of Advisory Committees, I assist staff members with tasks such as writing briefing papers and industry research. That being said, one of the most rewarding projects I’ve had a chance to work on has been the “balanced score card” for the PEC’s recommendations. The score card included the PEC’s recommendations, polices that have been implemented thus far, and what actions the Administration will be taking to be responsive to the recommendations. Some of the recommendations included advocating for the passage of the pending Free Trade Agreements, visa reform, enhancement of our transportation infrastructure, and better coordinated export assistances for small and medium enterprises (SMEs). The PEC’s recommendation on transportation infrastructure was particularly interesting to me because it outlined how reliable transportation and infrastructure can help the flow of exports which are essential to our economy. For example, the Department of Transportation’s second round of TIGER (Transportation Investment Generating Economic Recovery) grants focused on financing infrastructure projects that would enhance exports. Another recommendation that is being implemented is on Export Control Reform. Just yesterday, White House Chief of Staff Daley discussed how critical these reforms are so I’m looking forward to see how the PECSEA (the PEC subcommittee that focuses on export controls) moves forward on it’s ideas to strengthen national security through reforming the U.S export control system.

After reading through the recommendations and seeing how the Administration has responded, I soon began to realize how implementing the PEC recommendations will lead to an increase in exports and get our economy back to where it needs to be. Last week’s Hill briefings were a success and although I am only an intern, I know that the work we do with the PEC is vital to the Administration and especially to businesses across the country.

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June is Manufacturing Month

June 14, 2011

Cory Churches is a Communications and Outreach Specialist in the International Trade Administration’s Office of Public Affairs.

Did you know that June is manufacturing month? ITA has an entire division dedicated to supporting U.S. manufacturers, the Manufacturing and Services division. The trade specialists, economists, and highly knowledgable staff provide analysis and tools specifically to help manufacturers become and remain competitive. Below is a list of some of the progams and services companies can tap into to improve their competitiveness:

  • The Manufacturing Council advises the Secretary of Commerce on matters relating to the competitiveness of the Aircraft enginesmanufacturing sector, and government policies and programs that affect U.S. manufacturers. The Council is composed of up to 25 private sector representatives from a broad cross-section of the industry and include steel, textile, and superconductor manufacturers both large and small. Their products support a diverse range of industries such as the auto, aerospace, apparel and energy efficiency sectors.
  • The Sustainable Manufacturing Initiative (SMI) has developed tools and resources to help companies, particularly small and medium-sized enterprises, implement sustainable business practices faster and more effectively. The benefits to manufacturers include lower energy and resource costs, increased marketability of products and services and lower regulatory costs and risk.
  • Manufacturers will find the FTA Tariff Tool database helpful in determining the tariff, or tax at the border, that certain foreign countries will collect when products cross into their country. In trade agreements, countries commit to lowering tariff rates over time to zero. The FTA Tariff Data Tool is a database with all of the rates the United States’ Free Trade Agreement (FTA) or Trade Promotion Agreement (TPA) partners have committed to implementing and maintaining. Additionally, the database includes the tariff rates for Korea, Panama, and Colombia, although those trade agreements have not yet been implemented. 
  • The Manufacturing Bi-Weekly highlights economic indicators, such as wage rates, profits, employment, production and productivity to give readers an overview of the state of the manufacturing sector.

The programs and services listed above are just an example of the sorts of assistance and support that the International Trade Administration can provide to manufacturers of all size.

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New Manufacturing Council Represents the “Next Generation of Manufacturing”

August 6, 2010

 Melanie Kaplan is an intern in the Office of Advisory Committees and entering her junior year at Wellesley College.

Hot off the press: the Secretary of Commerce has appointed twenty-four members to his Manufacturing Council. When I first heard that I would be working on the Manufacturing Council, I envisioned the traditional “Midwestern steel” companies. After a week of working on the Manufacturing Council, I realized that domestic steel producers were only one part of it with other types of manufactures representing a wide variety of U.S. industries.

Secretary of Commerce Gary Locke announces the appointment of 24 members of the Manufacturing Council

Secretary of Commerce Gary Locke (center) announces the appointment of 24 members of the Manufacturing Council

This spring, the Office of Advisory Committees did a nation-wide search for companies that would best represent the U.S. Manufacturing Sector. From small and medium enterprises (SME’s) to some of the largest manufacturing companies in the country, these companies will provide Secretary Locke with their unfiltered advice and expertise. The Manufacturing Council members announced by Secretary Locke yesterday afternoon at an official ceremony on Capitol Hill where the Secretary was joined by Senators Debbie Stabenow (MI), Sherrod Brown (OH), Jeff Merkley (OR) and Tom Udall (NM) represents the most diverse group of advisors in the Council’s history.  The members, the companies and the industry sectors they represent are:

Bruce Sohn,
President
First Solar, Inc., Chair (AZ)
Joseph B. Anderson, Jr.,
Chairman & CEO
TAG Holdings LLC, Vice Chair (MI)
Luis Arguello,
President
DemeTech (FL)
Greg Bachmann,
Chairman & CEO
Dymax Corporation (CT)
Richard M. Beyer,
Chairman & CEO
Freescale Semiconductor, Inc. (TX)
Chandra Brown,
President
Vice President
 
United Streetcar
Oregon Iron Works, Inc. (OR)
Daniel DiMicco,
Chairman & CEO
Nucor Corporation (NC)
Al Fuller,
Chief Executive Officer
Integrated Packaging Corporation (NJ)
Michael Gambrell,
Executive Vice President
The Dow Chemical Company (MI)
David W. Hastings,
Chairman & CEO
Mount Vernon Mills, Inc. (SC)
Mary Isbister,
President
GenMet (WI)
Kellie Johnson,
President
Ace Clearwater Enterprises (CA)
Fred Keller,
Chairman & CEO
Cascade Engineering (MI)
Samuel Landol,
Chief Operating Officer
Sealaska Corporation (AK/WA)
Michael Laszkiewicz,
Vice President & General Manager
Automation Power Control Business, Rockwell Automation, Inc. (WI)
Daniel P. McGahn,
President & COO
American Superconductor Corporation (MA)
James B. McGregor,
Vice Chairman
The McGregor Metalworking Companies (OH)
Stephen MacMillan,
President, CEO & Chairman
Stryker Corporation (MI)
David Melton,
President & CEO
Sacred Power Corporation (NM)
Jason W. Speer,
Vice President & General Manager
Quality Float Works, Inc. (IL)
Ward J. Timken,
Chairman
The Timken Company (OH)
Peter Ungaro,
Chairman & CEO
CRAY (WA)
Jane L. Warner,
Executive Vice President
Illinois Tool Works (IL)
Donna L. Zobel,
Chairman & CEO
Myron Zucker (MI)

Ex Officio Members:

  • Steven Chu, U.S. Secretary of Energy
  • Hilda L. Solis, U.S. Secretary of Labor
  • Timothy F. Geithner, U.S. Secretary of the Treasury

Many of the companies listed above are the first from their sectors… to be included on the Manufacturing Council. As an intern this summer, I helped the staffers to create a council that encouraged diversity, going green and an understanding of corporate responsibility. One of my favorite parts of the vetting process was seeing the innovative ways the companies gave back to their local, national and global communities. I was also inspired by one of the Manufacturing Council appointees who spoke with such fervor about the “next generation of manufacturing” and how it can and will contribute to U.S. global competitiveness.

Previous Manufacturing Councils have discussed energy costs and alternatives, sustainable manufacturing, tax credits for research and development, market access as well as a variety of other topics. In the upcoming meetings, the issue of credit access for SME’s and how to best allocate resources from American Investment & Recovery Act may be a few of the hottest topics. Additionally, the Manufacturing Council may be involved in Assistant Secretary Nicole Lamb-Hale’s manufacturing trade mission “Manufacture America: Rethink, Retool, Rebuild to Support Jobs” in Fall 2010. Stay tuned for more updates on the Manufacturing Council’s first official meeting scheduled for September 2010…

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Committees Give Voice to Industry and Small Business in Formation of Trade Policy

February 6, 2010

Laura Hellstern has been with the International Trade Administration for 19 years.  She currently serves as a trade specialist in the Office of Domestic Operations, U.S. Commercial Service.  She is also the Designated Federal Officer for ITAC 11 (Industry Trade Advisory Committee for Small and Minority Business) 

At an Industry Trade Advisory Committee meeting recently, one of the members leaned forward in his seat, an earnest look on his face as he peered at the U.S. Trade Representative official at the front of the room. Speaking emphatically and slowly, he explained in detail how he felt small businesses were impacted as pending trade agreements wait to be enacted.  

Most Industry Trade Advisory Committee (ITAC) 11 meetings are not quite that dramatic, but tensions can be high as members seek to help U.S. government officials understand which actions they believe will better help small and minority businesses to compete in global markets.  And they do understand!  U.S. Government policy makers rely on ITACs to identify trade barriers and provide advice on key objectives and bargaining positions for multilateral, bilateral, and regional trade negotiations, and all trade policy matters. As a result, the United States is able to display a united front when it negotiates trade agreements with other nations. Our negotiating position is strengthened because its objectives are developed with bipartisan, private-sector input throughout the negotiations.

ITAC 11 is just one of 16 ITACs administered by the Department of Commerce in joint cooperation with the Office of the U.S. Trade Representative.  Established under the Trade Act of 1974 to ensure that trade negotiators were consulting with the private sector, Industry Trade Advisory Committees link industry and the U.S. Government, giving industry a voice in formulating the trade policy of the United States. Currently there are 375 industry advisors, appointed by the Commerce Secretary the U.S. Trade Representative, and providing valuable input as the Administration advances its trade agenda.  ITACs advise on whether trade agreements promote the economic interests of the United States and achieve negotiating objectives, and whether the agreements are fair to all types of U.S. businesses.  ITACs reflect the manufacturing and services sectors of the U.S. economy, as well as cross-cutting issues (IPR, customs, standards).

Among the many ways that the International Trade Administration helps advance international trade, the ITAC system is an empowering tool through which U.S. businesses can provide their perspective on U.S. trade policy.   Being an ITAC advisor is not for everyone, but anyone who represents a U.S. entity or organization engaged in international trade, and who is not a federally-registered lobbyist, registered foreign agent or government employee can apply.  Advisors are, among other professions, trade consultants, lawyers, financial consultants, international sales managers, and trade organization representatives.   The companies and organizations they represent are big and small manufacturers, law firms, financial institutions, trade organizations, World Trade Centers, Chambers of Commerce – the list is long.  Applicants are appointed based on representation of their sponsoring entity or organization’s interests on trade matters, their in-depth knowledge of and experience in international trade, and the balance of each ITAC in terms of geography, size of entity represented and industry sector.    ITAC members meet several times each year, usually in Washington, DC.  Members are expected to attend as many meetings as possible, and must do so at the expense of their representative company. 

Designed to represent small and minority businesses, ITAC 11 is a multi-industry committee that focuses on making sure that trade negotiations and policies don’t make it difficult for small and minority businesses to enter and sustain international business.  The U.S. International Trade Commission’s report “Small and Medium-Sized Enterprises: Overview of Participation in U.S. Exports,” notes that only “1% of small businesses export.”  Along with ITA and its trade promotion efforts, committees like ITAC 11 help combat that dismal statistic by opening up communications between industry and government and making government more responsive to the needs of those “engines of international trade,”  the small business.  ITAC 11 turns up the volume when small and minority business speaks. 

I have been a “Designated Federal Officer” (I act as liaison between members and the Industry Trade Advisory Center) for the Small/Minority Business ITAC for more than four years, and I continue to be impressed with the effectiveness of the ITAC structure and its ability to give voice to the needs of small and minority businesses.  And the members’ passion and commitment to providing input to is an amazing thing to see.   I urge anyone interested in making an impact on trade policy to visit http://www.trade.gov/ and click on “Become an Industry Trade Advisor”  for more information.

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