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.
News Release 12-067
Contact: Peg O'Laughlin, 202-205-1819
Deanna Tanner Okun, Chairman of the United States International Trade Commission (USITC), has announced that Dr. Robert B. Koopman has been appointed the USITC's Director of Operations.
Koopman will oversee the investigative and research activities of the agency's Offices of Investigations, Unfair Import Investigations, Industries, Economics, Tariff Affairs and Trade Agreements, and Analysis and Research Services.
Prior to his appointment, Koopman served as the Director of the USITC's Office of Economics, where he functioned as the agency's Chief Economist. He was appointed to that position in July 1999. Previously, Koopman worked for 15 years with the U.S. Department of Agriculture (USDA). He was the Deputy Administrator for Economic and Community Systems in the USDA Cooperative State Research, Education, and Extension Service at the time of his USITC appointment. Earlier, he was the Deputy Director of the Commercial Agriculture Division of the USDA Economic Research Service (ERS). He began his professional career at the ERS as an economist and later served as Leader of the ERS Central and Eastern Europe Section and Chief of the ERS Europe, Africa, and Middle East Branch.
Koopman holds a Ph.D. in Economics from Boston College and a Bachelor of Arts degree from the University of Southern Maine. He lives in Alexandria, VA, with his wife and three children.
The U.S. International Trade Commission (USITC) is an independent, nonpartisan, factfinding federal agency that makes determinations concerning the impact of imports and their potential injury on domestic companies. The USITC staff includes experts who analyze virtually every commodity imported into the United States. The USITC provides data on international trade to the President, Congress, other federal agencies, and the public.
News Release 12-065
Contact: Peg O'Laughlin, 202-205-1819
Deanna Tanner Okun, Chairman of the United States International Trade Commission (USITC), announced today that Chris Swetz has been designated as the Director of the Office of Budget at the USITC.
Swetz will serve as the agency's Budget Director. In that role he will work with the Commissioners and Office Directors in the formulation and execution of the agency's budget.
Prior to his USITC appointment, Swetz worked for 10 years with the Veterans Benefits Administration within the U.S. Department of Veterans Affairs, most recently as a Supervisory Budget Analyst. He served as a Lead Budget Analyst from 2008 to 2010 and a Budget Analyst from 2004 to 2008 and from 2002 to 2003. Swetz was a Veterans Service Representative with the VA from 2001 to 2002.
Swetz served as an Infantryman with the U.S. Marine Corps Reserve from 1995 to 2001.
Swetz holds a bachelor's degree in government and politics from the University of Maryland and a master's degree in public administration from Troy State University. He resides in Washington, DC.
The U.S. International Trade Commission (USITC) is an independent, nonpartisan, factfinding federal agency that makes determinations concerning the impact of imports and their potential injury on domestic companies. The USITC staff includes experts who analyze virtually every commodity imported into the United States. The USITC provides data on international trade to the President, Congress, other federal agencies, and the public.
News Release 12-063
Contact: Peg O'Laughlin, 202-205-1819
Deanna Tanner Okun, Chairman of the United States International Trade Commission (USITC), announced today that Patricia R. Connelly has been designated as the Director of the Office of Human Resources at the USITC.
Connelly will plan, develop, and direct the USITC's human resources management program.
Connelly has more than 30 years of experience in the federal human resources (HR) field, including 15 years of management experience. She served as Director, Human Resource Management, at the Peace Corps from 2007 until her USITC appointment. Prior to that, she held numerous HR positions with increasing responsibilities with the U.S. Postal Service (USPS), most recently Manager of Recruitment and Placement at USPS headquarters; Team Leader, HR Field Policies and Programs, at USPS headquarters in Washington, DC; and Manager of Human Resources in the USPS Central New Jersey District Office. Connelly's earlier USPS positions yielded experience in labor relations, compensation and staffing, employee benefits and services, and delegated examinations.
Connelly holds a bachelor of science degree in human resource management from the State University of New York, Albany, and a master of science degree in organizational development/HR from Johns Hopkins University. Connelly is certified as a Senior Professional of HR by the HR Credentialing Institute (HRCI), and as an Executive/Leadership coach by the Institute for Professional Excellence in Coaching (IPEC). She resides in Alexandria, VA, and has two grown children - Jill, from West Hills, CA, and Anthony, from Lorton, VA.
The U.S. International Trade Commission is an independent, nonpartisan, factfinding federal agency that makes determinations concerning the impact of imports and their potential injury on domestic companies. The USITC staff includes experts who analyze virtually every commodity imported into the United States. The USITC provides data on international trade to the President, Congress, other federal agencies, and the public.
News Release 12-062
Inv. No(s). 337-TA-847
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain electronic devices, including mobile phones and tablet computers, and components thereof. The products at issue in this investigation are electronic devices, including mobile phones and tablet computers.
The investigation is based on a complaint filed by Nokia Corporation of Finland; Nokia, Inc., of Sunnyvale, CA; and Intellisync Corporation of Sunnyvale, CA on May 2, 2012. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain electronic devices, including mobile phones and tablet computers, and components thereof that infringe patents asserted by the complainants. The complainants request that the USITC issue an exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
HTC Corporation of Taiwan;
HTC America, Inc., of Bellevue, WA; and
Exedea, Inc., of Houston, TX.
By instituting this investigation (337-TA-847), the USITC has not yet made any decision on the merits of the case. The USITC's Chief Administrative Law Judge will assign the case to one of the USITC's six administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
News Release 12-061
Inv. No(s). 337-TA-846
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain CMOS image sensors and products containing same. The products at issue in this investigation are CMOS image sensors and consumer electronics devices (such as camera phones) containing CMOS image sensors.
The investigation is based on a complaint filed by the California Institute of Technology (Caltech) of Pasadena, CA, on May 1, 2012. Letters supplementing the complaint were filed on May 21, 2012, and May 22, 2012. The complaint, as supplemented, alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain CMOS image sensors and products containing same that infringe patents asserted by Caltech. The complainant requests that the USITC issue an exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
STMicroelectronics NV of Switzerland;
STMicroelectronics Inc. of Coppell, TX;
Nokia Corp. of Finland;
Nokia, Inc., of White Plains, NY;
Research In Motion Ltd. of Canada; and
Research In Motion Corp. of Irving, TX.
By instituting this investigation (337-TA-846), the USITC has not yet made any decision on the merits of the case. The USITC's Chief Administrative Law Judge will assign the case to one of the USITC's six administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
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.
News Release 12-058
Inv. No(s). 701-TA-480 (Final), 731-TA-1188 (Final)
Contact: Peg O'Laughlin, 202-205-1819
The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of high pressure steel cylinders from China that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold in the United States at less than fair value.
All six Commissioners voted in the affirmative.
As a result of the USITC's affirmative determinations, Commerce will issue antidumping and countervailing duty orders on imports of these products from China.
The Commission's public report High Pressure Steel Cylinders from China (Investigation Nos. 701-TA-480 and 731-TA-1188 (Final), USITC Publication 4328, June 2012) will contain the views of the Commissioners and information developed during the investigations.
Copies may be obtained after July 2, 2012, by emailing pubrequest@usitc.gov, calling 202-205-2000, or by writing the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Office of Industries
Washington, DC 20436
FACTUAL HIGHLIGHTS
High Pressure Steel Cylinders from China
Investigation Nos. 701-TA-480 and 731-TA-1188 (Final)
Product Description: High pressure steel cylinders (HPSCs) are seamless, chromium-alloy steel containers designed specifically for transporting, storing, and dispensing compressed or liquefied gases. These cylinders are permanently impressed, either before or after importation, with the symbol of the U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration (DOT)-approved producer, as well as a DOT specification 3A, 3AX, 3AA, 3AAX, 3B, 3E, 3HT, 3T, or DOT-E (followed by a specific exemption number) per §178.36-178.68 of Title 49 of the Code of Federal Regulations, as amended. HPSCs included in these investigations have water capacities up to 450 liters and gas capacity ranges of 8-702 cubic feet, regardless of service pressures, physical dimensions, finishes, or coatings. Excluded are HPSCs produced to UN-ISO-9809-1 and 2 specifications and permanently impressed with ISO or UN symbols; and acetylene cylinders permanently impressed with DOT specification 8A or 8AL.
Status of Proceedings: 1. Type of investigations: Final antidumping and countervailing duty. 2. Petitioner: Norris Cylinder Co., Longview, TX. 3. Investigations instituted by the USITC: May 11, 2011. 4. Commission's hearing: May 1, 2012. 5. USITC vote: May 30, 2012. 6. USITC determinations and views to the U.S. Department of Commerce currently scheduled for: June 11, 2012. U.S. Industry: 1. Number of producers in 2011: One. 2. Location of producers' plants: Alabama and Texas. 3. Employment of production and related workers in 2011: (1) 4. Apparent U.S. consumption in 2011: (1) 5. Ratio of the value of total U.S. imports to total U.S. consumption in 2011: (1) U.S. Imports: 1. From the subject country during 2011: (1) 2. From other countries during 2011: (1) 3. Leading sources during 2011: China, Canada, and Korea (in terms of quantities).
(1) Withheld to avoid disclosure of business proprietary information.
News Release 12-057
Inv. No(s). 337-TA-844
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain drill bits and products containing the same. The products at issue in this investigation are drill bits for mineral mining.
The investigation is based on a complaint filed by Boart Longyear Company and Longyear TM, Inc., both of South Jordan, UT, on April 25, 2012. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain consumer drill bits and products containing the same that infringe patents asserted by the complainints. The complainants request that the USITC issue an exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Boyles Bros Diamantina S.A. of Peru;
Christensen Chile S.A. of Chile;
Diamantina Christensen Trading Inc. of Panama; and
Intermountain Drilling Supply Corp. of West Valley City, UT.
By instituting this investigation (337-TA-844), the USITC has not yet made any decision on the merits of the case. The USITC's Chief Administrative Law Judge will assign the case to one of the USITC's six administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
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.