U.S. Commerce Secretary Gary Locke, hosted a meeting for North America’s Industry Ministers.  Tony Clement, Canada’s Minister of Industry, and Bruno Ferrari, Mexico’s Secretary of Economy, were in attendance.  They discussed the importance of trilateral cooperation on issues such as the National Export Initiative.  The leaders agreed to identify ways to encourage small and medium-sized firms to export their goods and services.  Secretary Locked added:

Canada, the United States, and Mexico have a sophisticated and robust trade relationship because of NAFTA… Because our businesses already cooperate in the production of goods and delivery of services, we must work together to develop strategies that will benefit these businesses and the workers of this region.

According to American Shipper, trilateral trade among the NAFTA partners totaled more than $735 billion in 2009.  (An increase of 148% since the year before NAFTA’s implementation.)

Just after Taiwan has signed a landmark free trade agreement with China, David Shear, the State Department pointman on China-Taiwan ties, said the “The United States has no plans to begin talks with Taiwan about an FTA at this time.”

The US and Taiwan were previously negotiating a Trade and Investment Framework Agreement in 2007.

According to the AFP, Taiwan and other Asian countries have been hesitant to implement trade agreements with the US due to various agricultural trade disputes, including beef, pork, and poultry.

The countries imposed restrictions in late 2003 after mad cow disease was detected in an American herd. Some scientists believe humans can contract the brain-wasting illness by eating infected animals’ brains and spinal cords.

Taiwan agreed with the United States in October to let in more beef products but the island’s parliament reimposed restrictions three months later after a public outcry.

Read the complete article at Google News: AFP: US rules out Taiwan free trade deal

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Jim McNerney, Chief Executive of Boeing, noted that the US economy is still “fragile” and said “We need to borrow less, save more, become more efficient and competitive and bring our exports back in line with our imports. Opening up and expanding new markets is paramount,” in his speech to the Chicago Council on Global Affairs.

The Financial Times states:

As chairman of President Barack Obama’s export council, Mr McNerney has been tasked with leading industry’s side of a campaign to double US exports within five years – an effort that the White House projects will create two million US jobs. Boeing is the world’s second-largest aircraft-maker and one of the US’s biggest exporting companies.

McNerney also added, “The Obama administration, in my view, is not moving fast enough. I would encourage them to move faster on … free trade agreements with Korea, Colombia and Panama.”

Although the US signed trade agreements with South Colombia, South Korea, and Panama in 2006 and 2007, Congress has failed to approve the agreements. Companies are looking to President Obama to get the ball rolling again to pass these agreements into effect.

Specifically, McNerney believes Korea and Colombia to be new markets where European corporations (Ahem, Airbus perhaps?) were able to export under a lower-tariff regime than US Companies.

Read more at: “Boeing urges faster action on trade deals” in the Financial Times.

Register Today for the Direct Import Webinar!

Free Trade Agreements play an integral part of your direct import strategy. Although it’s not on the agenda for the webinar, there will be a Q&A session at the end where you can ask any specific questions about the role of trade agreements in direct import!

In advance of the webinar, the webinar organizers ask you to please tweet your questions to Management Dynamics or World Trade on Twitter so they can be sure all questions are included.

From the WorldTrade Magazine description:

“Earlier this year, the world’s largest retailer announced projected cost savings of 5 – 15% by product category with an expanded direct import program.

While retailers, consumer goods companies and most global manufacturers have been importing for years, there is renewed interest in understanding all of the elements of a direct import program and the opportunity areas that can drive new supply chain efficiencies and boost product profitability.

The Direct Import Webinar will take a look at the foundation technologies for a direct import program, explore the implementation options by working with a global logistics provider, and discuss a number of successful case studies.

During this webinar, you will hear from a panel of industry experts to better understand how to:

• Optimize sourcing strategies across procurement, logistics and trade  compliance
• Better manage compliant orders with suppliers and plan shipments
• Coordinate origin logistics and reduce transportation spend
• Automate pre-clearance and reduce delays through Customs
• Monitor and manage global fulfillment issues to accelerate cash-cash cycles”

Click here for more details and to register for the webinar!

According to an MSNBC article, the ‘rules are complex, confusing.’ No kidding!!

It takes roughly 40 pages to spell out the FTC’s rules of the road for companies that want to make the Made in America claim. And those are just one of a half-dozen separate sets of rules that apply to “country of origin” labeling.

This doesn’t include the additional complex, confusing rules that make up free trade agreements. And this is why we have extensive networks of trade compliance professionals, customs brokers, customs law attorneys, and regulatory agencies such as the CBP & FTC, constantly working with companies to either ensure their products are in compliance with these complex rules, or to work towards improving the rules.

As is the nature of government, products pop up or change faster than the rules are made, so the entire system is in constant flux. So if you think you’ve got those 40 pages of regulations memorized today, unless you are keeping up-to-date on new developments, you will soon be left in the dust when the rules change.

What does that entail? Well, you could be subject to duties when you thought your items were duty-free, and you could be subject to fines & penalties. Or you could be uneccesarily paying taxes on free-trade eligible items – and don’t bet on the government knocking on your door to return your money!

What happens if you make a false “Made in America” claim? This article focuses on the consequences of selling in the US:

If you get caught, and the FTC decides you’ve crossed the line, you’ll get an order to stop making the claim. Most companies who get nabbed agree to stop making false Made in America claims without admitting or denying they did anything wrong. If you break the rules again, you’ll probably get hit with a heavy fine for each infraction.

But the FTC doesn’t have a Made in America Police browsing store shelves for violations. The agency relies on consumers to tip them to infractions. If you think a company is falsely making a “Made in America” claim, you can notify the FTC’s Complaint Assistant Web site.

For more answers to frequently-asked questions about Made in America regulations, visit: ‘Made in America rules’ are complex, confusing.

Trade Agreement Best Practices Benchmark Study

If your company is considering utilizing a free trade agreement such as NAFTA, or wants to maximize the savings from a free trade agreement, read our Trade Agreement Best Practices Benchmark.

Implementing and maintaining compliance with a free trade agreement is a complex and technical process. Make sure your company takes full advantage of the trade agreement savings by benchmarking your process against 300 respondents across many different industry verticals and revenue size.

Receive the Trade Agreement Best Practices Benchmark Study Now!

Assistant United States Trade Representative Barbara Weisel led the U.S. delegation and Deputy Secretary (Trade) Koh Lin-Net of the Ministry of Trade and Industry led the Singaporean delegation.

Photo Courtesy Edwin.11

The annual review provides an opportunity for both sides to exchange opinions on trade topics such as agricultural and textile market access, intellectual property rights, telecommunications and government procurement, and other issues.

The delegations also  reviewed the past year’s activities under the Plan of Action for Environmental Cooperation, discussed additional opportunities for environmental cooperation and explored ways to intensify joint work on labor issues, including worker rights and human resources development.

The Office of the US Trade Representative states:

The two sides also discussed ongoing cooperative efforts and welcomed the continued robust growth in bilateral economic trade and investment since the FTA came into force in 2003.

Since the U.S.-Singapore FTA came into force, U.S. goods exports have increased 68 percent and Singapore is now the United States’ 16th largest goods trading partner, with goods exports totaling $28 billion in 2008. U.S. agricultural exports to Singapore totaled $485 million 2008.

Trade in services also remained strong over the past year, with U.S. exports of $9 billion to Singapore in 2008, up 12.5 percent from the previous year. In 2008, Singaporean investment in the United States increased by nearly 9 percent and U.S. investment in Singapore increased by 12 percent.

With the possibility of an upcoming TPP agreement, the potential for growth in Southeast Asia is enormous. US companies seeking to export to Singapore and other TPP partners should start preparing today. Taking advantage of the trade agreements already in place with TPP partners, such as US-Singapore, US-Chile, and US-Australia, can set a foundation and build experience for further expansion once the Trans-Pacific Partnership has been solidified.

In particular, the US-Singapore agreement may be the basis agreement for the TPP, especially considering its Plan of Action for Environmental Cooperation and labor rights considerations.

Trade Agreement Best Practices Benchmark Study

If your company is considering implementing a free trade agreement, or wants to maximize the savings from a free trade agreement, read our Trade Agreement Best Practices Benchmark.

Implementing and maintaining compliance with a free trade agreement is a complex and technical process. Make sure your company takes full advantage of the trade agreement savings by benchmarking your process against 300 respondents across many different industry verticals and revenue size.

Receive the Trade Agreement Best Practices Benchmark Study Now!

Image courtesy: Wikimedia Commons

President Obama will be soon negotiating a regional, Asia-Pacific trade agreement, known as the Trans-Pacific Partnership (TPP) Agreement, with the objective of shaping a high-standard, broad-based regional pact.

At the recent “APEC and the USA: Looking to 2011 and Beyond” event, Ambassador Ron Kirk stated:

“Because the Asia-Pacific is so vital to America’s economic future, we have also decided to participate in the Trans-Pacific Partnership. Because my vision for America’s Asia-Pacific trade is not limited to one organization, but will embrace every opportunity for growth.

Image Courtesy: Koshyk

“Through the Trans-Pacific Partnership, we have the opportunity to expand U.S. trade in the Asia-Pacific by negotiating and shaping a high-standard trade agreement with key Asia-Pacific economic partners. Right now, the TPP includes Australia, Brunei, Chile, New Zealand, Peru, Singapore, and Vietnam- partners that are geographically and developmentally diverse, but are of one mind in their ambition. Our participation is based on the shared objective of expanding this group to include additional Asia-Pacific economies in what will become the largest, most dynamic trade collaboration of our time.”

If you’re up-to-date on your trade agreements, you’ll recognize that the US already has existing free trade agreements in place with several of these countries – Australia, Chile, Peru & Singapore.

The estimated trade between the US and these regions is approximately $25 billion making this a very powerful trade agreement. With the potential of adding South Korea, Japan, the TPP could grow to be on par with, or larger than, the recent EU-Korea trade agreement ($95 billion) and by including Mexico and Canada, TPP would be even larger than NAFTA ($1 trillion).

The office of the US Trade Rep also announced a new website to provide the public with information regarding the TPP – http://www.ustr.gov/tpp – but it has yet to appear.

The office of the USTR is also seeking public comment by interested parties on this intended trade agreement. Comments must be submitted by January 25th, 2010. USTR will then hold public hearings in early 2010.

• See how to comment in the Federal Register. (PDF courtesy Wiley Rein LLP)
• What specific topics does the USTR need comments for? Read more at Lexology.

USTR Ron Kirk Remarks On Trans-Pacific Partnership Negotiations:

• Read more of the US Trade Rep’s remarks on this free trade agreement

Trans-Pacific Partnership Announcement:

• Additional information courtesy of the USTR.

From the New York Times, on Thursday:

At a news conference in Seoul, South Korea, Mr. Obama and the president of South Korea, Lee Myung-bak, both declared their desire to renegotiate elements of the agreement and to have both countries ratify it as soon as possible.

“I am a strong believer that both countries can benefit from expanding our trade ties,” Mr. Obama said. “I have told President Lee and his team that I am committed to seeing the two countries work together to move this agreement forward.”

However, since Thursday it has become unclear whether the two nations will be able to renegotiate the terms of the agreement, as the South Korea foreign trade minister ruled out additional trade talks on Friday.

US Manufacturers oppose the agreement, saying it does too little to open the Korean market and they will face an influx of Korean competitors. Proponents counter that, with Korea’s new trade agreement with the EU, the US must approve this deal if it wants to remain competitive in both markets.

Read the complete article at: South Korea Trade Pact Is Revived by Obama

President Barack Obama wants to sign a free trade pact with Japan, U.S. Ambassador to Japan John Roos told the Nikkei English News in an interview yesterday.Roos said progress on a trade agreement can “hopefully” continue, Nikkei said. The Office of the U.S. Trade Representative and Japanese experts should continue to talk about a schedule for negotiating a free trade agreement, the new U.S. envoy told Nikkei.