Exports

Brazil

Alison Rozema

Change in 2013 from 2012:

• Read more about Brazil

Trade Shifts 2013 Overall Economic Performance

Michael Stanton-Geddes

The U.S. economy grew at a rate of 1.9 percent in 2013. This growth rate was lower than the 2.8 percent increase in 2012, but similar to the 2011 growth rate. Various factors slowed economic growth in 2013, including the U.S. federal government shutdown in early October and a decrease in private investment. U.S. gross domestic product (GDP) growth in 2013 was driven by private domestic investment and increased production.

• Read more about Trade Shifts 2013 Overall Economic Performance

July 26, 2012
News Release 12-082
Inv. No(s). 332-503
Contact: Peg O'Laughlin, 202-205-1819

Three years after its implementation, the Earned Import Allowance Program (EIAP) is not providing enough incentives to help boost the competitiveness of Dominican apparel exports in the U.S. market, as intended, reports the U.S. International Trade Commission (USITC) in its publication Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Third Annual Review.

The EIAP allows apparel manufacturers in the Dominican Republic who use U.S. fabric to produce certain apparel to earn a credit that can be used to ship eligible apparel made with non-U.S.-produced fabric into the United States duty free. The Dominican Republic-Central America-United States Free Trade Agreement Implementation Act, as amended, requires the USITC, an independent, nonpartisan, factfinding federal agency, to evaluate annually the effectiveness of the EIAP program and make recommendations for improvements.

The USITC's third annual review was submitted to the U.S. House of Representatives Committee on Ways and Means and the U.S. Senate Committee on Finance on July xx, 2012. Highlights of the report follow.

 

 

 

 

 

 

• As currently structured, the EIAP has not provided enough incentives to curtail the ongoing declines in the Dominican Republic's production of woven cotton bottoms and exports.
• Although U.S. exports of cotton bottom-weight fabrics grew in 2011, the rate of growth slowed significantly from the first two years of the program.
• The USITC received several recommendations from industry and other sources concerning improvements to the EIAP. The recommendations were the same as those offered during the first and second annual reviews. They included lowering the 2-for-1 ratio of U.S. to foreign fabric to a 1-for-1 ratio; including other types of fabrics and apparel items in the EIAP; and changing the requirement that dyeing, finishing, and printing of eligible fabrics take place in the United States.

Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Third Annual Review (Investigation No. 332-503, USITC Publication 4340, July 2012) is available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4340.pdf. A CD-ROM of the report may be requested by e-mailing pubrequest@usitc.gov, calling 202-205-2000, or contacting the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the Senate Committee on Finance, or the House Committee on Ways and Means. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

July 12, 2012
News Release 12-077
Inv. No(s). 332-345
Contact: Peg O'Laughlin, 202-205-1819

 

U.S. Services Exports Grew by 9 percent from 2009-2010

 

The United States remained the world's largest services market and the world's leading exporter and importer of services in 2010, reports the U.S. International Trade Commission (USITC) in its publication Recent Trends in U.S. Services Trade, 2012 Annual Report.

The USITC, an independent, nonpartisan, factfinding federal agency, compiles the report annually. Each year's report presents an overview of U.S. trade in services and highlights some of the service sectors and geographic markets that contributed substantially to recent services trade performance.

This year's report focuses on infrastructure services, such as banking and telecommunications, which are essential to a country's overall economic growth and development and are used by every firm regardless of economic sector. The report also includes separate chapters on specific industries (banking, insurance, logistics, retail, securities, and telecommunications). These chapters analyze global competitive conditions in the industry, examine recent trade performance, discuss non-tariff measures that affect trade, and summarize the industry's outlook.

The 2012 report covers cross-border trade in services through 2010 and affiliate sales through 2009. Highlights of the report follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• From 2009 to 2010, U.S. cross-border services exports increased by 9 percent (to $518 billion) while U.S. services imports grew by 6 percent (to $358 billion). This represented a recovery from the previous year, when exports and imports of services fell following the financial crisis. Infrastructure services accounted for 25 percent of total U.S. cross-border services exports and 37 percent of cross-border imports in 2010.
• Services supplied abroad by foreign affiliates of U.S. firms continued to exceed services purchased from U.S. affiliates of foreign firms, reaching $1.1 trillion and $669 billion, respectively, in 2009. Infrastructure services accounted for 60 percent of both sales and purchases of services through affiliates.
• The value added (i.e., the output minus the cost of inputs) by U.S. infrastructure services in 2010 was $3.8 trillion, equal to 43 percent of the value added by all services and 34 percent of total private sector GDP. This figure had declined in previous years as the financial crisis and ensuing recession weakened demand, but the sector's value added in 2010 represented 6 percent growth over the previous year.
• Infrastructure services employed 30 million full-time-equivalent employees in 2010, equal to 30 percent of the total U.S. private sector workforce. Retail services accounted for 13 million of these employees. In 2010, labor productivity in infrastructure services grew by 7 percent while average annual wages grew by 4 percent (to $56,000), exceeding the private sector average wage but trailing wages in goods manufacturing and professional services. Both productivity and wages varied widely among infrastructure services industries.
• Regulation is a recurring theme among infrastructure services industries covered in this year's report. For example, financial reforms enacted in 2010 affected the banking, insurance, and securities services industries. Such regulations aim to address the potential negative effects of providing services and to meet economic and social objectives. However, regulations can also represent non-tariff measures that impede the ability of services providers to enter and operate in markets.
• The outlook for growth in each infrastructure service industry is, for the most part, dependent on the overall level of economic growth, although factors such as regulatory reform, technological innovation, and market access will also have a major impact. Joint ventures and mergers and acquisitions are likely to increase as a way for firms to reduce costs and enter foreign markets. Market access will be increasingly important to the banking, logistics, and retail industries, which anticipate faster demand growth in developing countries than in developed countries.
• The USITC hosted its fifth annual services roundtable on November 3, 2011. The discussion, summarized in the report, covered multilateral and regional trade negotiations, ways to harmonize services regulations, and services industries' contributions to global economic activity.

Recent Trends in U.S. Services Trade, 2012 Annual Report (Investigation No. 332-345, USITC publication 4338, July 2012) is available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4338.pdf.

May 30, 2012
News Release 12-059
Inv. No(s). 332-526
Contact: Peg O'Laughlin, 202-205-1819

Tighter Credit, Uncertain Government R&D Funding, and New Competitors Among Challenges Facing U.S. Business Jet Manufacturers

 

The U.S. business jet manufacturing industry is facing new challenges as it competes in a market environment characterized by tightened credit, uncertain government funding for research and development (R&D), and new entrants into the industry, reports the U.S. International Trade Commission (USITC) in its publication Business Jet Aircraft Industry: Structure and Factors Affecting Competitiveness.

The USITC recently concluded the investigation for the U.S. House of Representatives' Committee on Ways and Means. As requested, the report covers the period 2006-2010, with data from 2011 as available, for business jets at or below 50,000 pounds maximum takeoff weight.

The report provides an overview of the structure of the U.S. and global business jet industry; discusses the global market for business jet aircraft and the effects of the recent economic downturn on business jet demand; reviews government policies and programs involving the business jet industry, including those related to financial support, aircraft R&D, and certification; and examines factors that may affect the future competitiveness of the industry, particularly in the United States, Europe, Brazil, Canada, and China. Highlights of the report follow.

 

 

 

 

 

 

 

 

 

 

 

 

• Three of the world's six leading producers are headquartered in the United States, where the majority of production occurs. However, all six of the original equipment manufacturers conduct at least one production-related activity in the United States. All six firms are part of larger corporations, most of which have diversified interests, varied manufacturing experience, and a broader resource base.
• Global deliveries of business jets fell sharply during the period studied, with customers for the very light and light business jets, the market segments in which U.S. producers are most active, being the hardest hit during the recent recession.
• The U.S. and European markets continued to account for the largest number of business jet deliveries during the period studied, despite declines in total business jet deliveries. At the same time, the share of global deliveries to emerging markets such as China, India, and Russia grew during the period. Prospects for the continued growth in business jet deliveries to these markets may be limited, however, by inadequate airport infrastructure and regulatory and tariff concerns.
• Investment in R&D, along with business and technological innovation, are keys to success in this industry. In addition to funding from business jet manufacturers and suppliers, financial support for aeronautics R&D is provided by most governments to foster important national goals. The business jet sector, however, reportedly has had the least government R&D participation among aerospace sectors globally, a trend exacerbated by recently constrained government budgets.
• Export credit agencies (ECAs), such as the U.S. Export-Import Bank, Brazil's BNDES (Banco Nacional de Desenvolvimento Econ“mico e Social), and Canada's Export Development Canada, are available sources of funding for export sales of business jets. ECAs are likely to play an increasing role in providing sales finance to the industry.
• The future competitiveness of the U.S. business jet industry may be influenced by changes in such factors as regional demand, new entrants into the industry, workforce characteristics, government regulations pertaining to the environment, airspace usage, and aircraft user fees. In some cases, the impact of these changes, such as the opening of airspace in China, may benefit U.S. industry, whereas other changes, such as a proposed aircraft user fee in the United States, may pose challenges.

Business Jet Aircraft Industry: Structure and Factors Affecting Competitiveness (Investigation No. 332-526, USITC Publication 4314, April 2012) will be available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4314.pdf. A CD-ROM of the report may be requested by e-mailing pubrequest@usitc.gov, calling 202-205-2000, or contacting the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

May 25, 2012
News Release 12-056
Inv. No(s). 332-524
Contact: Peg O'Laughlin, 202-205-1819

Infrastructure, Finance, and Disease Issues Are Challenges Facing Brazil's Future Competitiveness

Brazil is one of the world's largest agricultural economies and has emerged as a leading global exporter of numerous agricultural commodities, but its direct competition with the United States for sales of soybeans, grains, and meats to third country markets has been somewhat limited, reports the U.S. International Trade Commission (USITC) in its publication Brazil: Competitive Factors in Brazil Affecting U.S. and Brazilian Agricultural Sales in Selected Third Country Markets.

The USITC, an independent, nonpartisan, factfinding federal agency, recently completed the investigation at the request of the U.S. Senate Committee on Finance. Highlights of the report follow.

• Brazil's agricultural sector has rapidly increased domestic production through land expansion and higher yields, thereby meeting rising food requirements for Brazilian consumers and creating opportunities to supply foreign customers. Over the past 20 years, Brazil has emerged as a leading global exporter of soybeans, soybean meal and oil, corn, beef, poultry, pork, cotton, and orange juice, in addition to traditional exports of sugar and coffee.
• Brazil's low-cost resource base, including ample land and water resources and weather patterns conducive to intensive land use, enables high-yield crop production across a wide range of agricultural products. Government-funded agricultural research has developed crop varieties that flourish in Brazil's previously untapped Center-West region. Low on-farm production costs have helped to make Brazil a competitive exporter.
• Despite tremendous potential, several important factors may serve to slow Brazil's expansion of agricultural production. Much of the available farmland is in areas that lack easy access to transportation infrastructure. Increasing demands for transportation, storage, and port infrastructure and capacity will likely outpace supply for quite some time. Relatively high-cost commercial credit could have the effect of discouraging investment. In addition, some livestock disease issues remain unresolved, and Brazil's labor laws and tax structures reportedly also increase costs.
• Although Brazil and the United States are both global exporters of grains and oilseeds, direct competition between the two countries currently is somewhat limited due to the substantial increase in global consumption. For example, both countries supply China with soybeans and soybean products. But given the rapid growth in Chinese soybean demand, increases in U.S. and Brazilian production have been readily consumed, and global prices remain strong.
• Limited competition between the U.S. and Brazil also exists in the meat sectors. Brazilian poultry exports are primarily produced and packaged for customers with exacting specifications, while U.S. poultry exports tend to be undifferentiated broiler cuts, such as leg quarters. In the beef sector, U.S. competition with Brazil is also limited because each country serves a different market segment. The United States supplies grain-fed beef destined for Canada, Mexico, Japan, and Korea, while Brazil supplies grass-fed beef used in processed products to other markets such as Russia. Because of import bans related to foot-and-mouth disease (FMD), market access for Brazilian beef and pork is restricted in many of the largest U.S. export markets.

Brazil: Competitive Factors in Brazil Affecting U.S. and Brazilian Agricultural Sales in Selected Third Country Markets (Investigation No. 332-524, USITC Publication 4310, May 2012) will be available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4310.pdf. A CD-ROM of the report may be requested by e-mailing pubrequest@usitc.gov, calling 202-205-2000, or contacting the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public unless they are classified by the requester for national security reasons.

March 8, 2013
News Release 13-026
Inv. No(s). 332-528
Contact: Peg O'Laughlin, 202-205-1819

Exports Made Up 7% of Total U.S. Used Electronic Product Sales

 

Because it is the world's largest market for new electronic products, the United States generates significant amounts of used electronic products, feeding a large used electronic product (UEP) market, reports the U.S. International Trade Commission (USITC) in its publication Used Electronic Products: An Examination of U.S. Exports.

The USITC estimates that in 2011, domestic sales of these products were valued at $19.2 billion and U.S. exports were valued at $1.45 billion, according to the report.

The USITC recently concluded the investigation for the U.S. Trade Representative. The report is based on data collected through a nationwide survey of 5,200 refurbishers, recyclers, brokers, information technology asset managers, and other handlers of used electronic products. It covers the year 2011 and focuses on audio and visual equipment, computers and peripheral equipment, digital imaging devices, telecommunication equipment, and component parts of these products.

The report provides an overview of the U.S. UEP industry, including information on domestic UEP collection, the share of goods that are refurbished compared to the share of goods that are recycled, and the characteristics of exported products. The report also provides information on the types of enterprises that export UEPs and those that import these products from the United States, and it examines the factors that affect trade in these products. Highlights of the report follow.

 

• UEPs are collected from consumers and businesses, then sorted by value. They are then either refurbished and resold as working electronic equipment, or they are disassembled into working parts or scrap commodities (metals, plastics, and glass) that are resold as manufacturing inputs in the United States and abroad.

   

   

• U.S. enterprises valued total domestic UEP sales at $19.2 billion in 2011, with U.S. exports totaling an additional $1.45 billion, or 7 percent of the enterprises' total sales.

   

   

• The top five destinations for U.S. UEP exports in 2011 were a group of Asia-Pacific countries (primarily Korea and Japan), Mexico, India, Hong Kong, and China, accounting for 74 percent of exports. Just over half of U.S. UEP exports were shipped to countries that are members of the Organisation for Economic Cooperation and Development (OECD).

   

   

• Whole equipment for reuse accounted for the largest share of U.S. exports by value in 2011, and tested and working products represented the majority of U.S. exports of whole UEPs.

   

   

• Refurbishing and repair enterprises accounted for the largest share of U.S. exporters of UEPs by value, followed by enterprises involved in wholesaling, brokering, or retailing.

   

   

• Measured by end-use of the products, commodity materials intended for smelting or refining accounted for the largest share of U.S. exports by weight (43 percent) in 2011.

   

   

• U.S. regulations in place in 25 states generally reduce exports by requiring electronics manufacturers to collect used products for recycling. Industry certification programs also likely serve to limit U.S. exports of UEPs. In contrast, limited U.S. capacity to process UEPs in two segments of the industry cathode ray tube (CRT) glass and final smelting create incentives to export CRT monitors, CRT glass, and circuit boards destined for smelting to retrieve precious metals.

   

   

• In developing countries, demand for UEPs exported from the United States is strong, but the Basel Convention and some country regulations may limit such exports, since many developing countries agree not to import nonworking UEPs from OECD member countries.

   

Used Electronic Products: An Examination of U.S. Exports (Investigation No. 332-528, USITC Publication 4379, February 2013), will be available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4379.pdf. A CD-ROM of the report may be requested by emailing pubrequest@usitc.gov, calling 202-205-2000, or contacting the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed at 202-205-2104.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analysis on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

March 28, 2013
News Release 13-033
Inv. No(s). TA-103-027
Contact: Peg O'Laughlin, 202-205-1819

The United States International Trade Commission (USITC) is seeking input on a newly initiated investigation concerning proposed modifications of the North American Free Trade Agreement (NAFTA) rules of origin.

The investigation, Probable Economic Effect of Certain Modifications to the North American Free Trade Agreement Rules of Origin, was requested by the U.S. Trade Representative (USTR) in a letter dated March 11, 2013.

As requested by the USTR, the USITC, an independent, nonpartisan, factfinding federal agency, will provide advice on the probable economic effect of the proposed NAFTA rules of origin modifications on U.S. trade and on domestic producers of the affected articles.

The investigation covers a wide variety of articles, including miscellaneous edible preparations; mineral fuels; products of the chemical or allied industries; plastics; rubber and related articles; cork; glass and glassware; copper, nickel, lead, tin, zinc, and other base metals; nuclear reactors, boilers, machinery, mechanical appliances, and related parts; electrical machinery and related parts; rail locomotives and parts; parts for trailers and semi-trailers; optical, medical, measuring, or checking instruments and apparatus; certain furniture; certain toys and games; lighters; and smoking pipes. Details can be obtained from the attachment to the request letter, which can be found on the USITC Internet site at http://www.usitc.gov/research_and_analysis/What_We_Are_Working_On.htm.

The USITC expects to submit its advice to the USTR by November 12, 2013.

The USITC is seeking input for its new investigation from all interested parties and requests that the information focus on the articles for which the USITC is requested to provide information and advice. The USITC will not hold a public hearing in connection with the investigation; however, the USITC welcomes written submissions for the record. Written submissions should be addressed to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436 and should be submitted at the earliest practical date but no later than 5:15 p.m. on June 4, 2013.

Further information on the scope of this investigation, the proposed rules of origin modifications, and the procedures for written submissions is available in the USITC's notice of investigation, dated April 28, 2013, which can be downloaded from the USITC Internet site (www.usitc.gov) or by contacting the Secretary at the above address.

USITC general factfinding investigations, such as these, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, and the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.