The U.S. International Trade Commission (USITC) is undertaking a new factfinding investigation on operations and conditions of competitiveness in U.S. foreign trade zones and similar programs in Canada and Mexico (FTZs).

The investigation, Foreign Trade Zones (FTZs): Effects of FTZ Policies and Practices on U.S. Firms Operating in U.S. FTZs and Under Similar Programs in Canada and Mexico, Inv. No. 332-588, was requested by the U.S. Trade Representative (USTR) in a letter received on December 14, 2021.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will prepare a public report for the USTR. The report will provide, to the extent practicable:

• an overview of economic activity in FTZs operating in the United States, Canada, and Mexico since 2016;
• an overview of the current FTZ policies and practices in the United States, Canada, and Mexico; and
• an analysis of the effects of current FTZ policies and practices in the United States, Canada, and Mexico on the cost-competitiveness of products of U.S. firms operating in these FTZs.

The USITC expects to submit its report to the USTR by April 14, 2023.

The USITC will hold a public hearing in connection with the investigation at 9:30 a.m. on May 17, 2022.  Information about how to participate in the hearing, including whether it will be virtual, will be posted on the Commission’s website no later than April 12, 2022, at https://usitc.gov/research_and_analysis/what_we_are_working_on.htm.  

Requests to appear at the hearing should be filed no later than 5:15 p.m. on May 3, 2022 with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.  See below for important information regarding filing a request to appear at a USITC hearing.

The USITC also welcomes written submissions for the record.  Written submissions should be addressed to the Secretary of the Commission and should be submitted no later than 5:15 p.m. on November 30, 2022. All written submissions, except for confidential business information, will be available for public inspection.  See below for important information regarding the filing of written submissions for USITC investigations.

IMPORTANT:  All filings to appear at the hearing and written submissions must be made through the Commission’s Electronic Document Information System (EDIS, https://edis.usitc.gov). No in-person paper-based filings or paper copies of any electronic filings will be accepted until further notice. Persons with questions regarding electronic filing should contact the Office of the Secretary, Docket Services Division (EDIS3Help@USITC.gov), or consult the Commission’s Handbook on Filing Procedures.

Further information on the scope of the investigation is available in the USITC’s notice of investigation, dated January 26, 2021, which can be downloaded from the USITC Internet site (www.usitc.gov) or may be obtained by contacting the Office of the Secretary at or may be obtained by contacting the Office of the Secretary at commissionhearings@usitc.gov. .

About these investigations: USITC general factfinding investigations, such as these, cover matters related to tariffs or trade and are generally conducted under section 332(g) of the Tariff Act of 1930 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.

The U.S. International Trade Commission (USITC) is seeking input for the recently instituted investigation Distributional Effects of Trade and Trade Policy on U.S. Workers (332-587) and announced today the dates for seven roundtable discussions, an academic symposium, and a public hearing. The U.S. Trade Representative (USTR) requested the investigation and report in a letter received on October 14, 2021. 

As requested by the USTR, the roundtables, symposium, and public hearing will focus on the potential distributional effects of goods and services trade and trade policy on U.S. workers by skill, wage and salary level, gender, race/ethnicity, age, and income level, especially as they affect underrepresented and underserved communities. The roundtables and public hearing will afford an opportunity for interested persons to present information and views relating to the investigation, and the academic symposium will afford an opportunity for researchers and data experts to present work relevant to the investigation.

The USITC is seeking input for the investigation from all interested parties and requests that the information focus on the issues that USTR highlighted in its request. Additional information regarding the investigation and roundtables, symposium, and public hearing can be found at the investigation specific web page:  https://www.usitc.gov/research_and_analysis/ongoing/distributional_effects_332. Important dates for each of the events are included below.

Roundtables

Interested parties wishing to attend or participate in one of the roundtables (listed below) may do so by emailing DE@usitc.gov or calling (202) 536-9960.

Theme	Format	Date of Roundtable	Participation Registration Deadline
Race and Ethnicity I	Virtual	March 1, 2022	February 15, 2022
Impacts on Underserved Communities – Fresno, CA	In Person / Virtual Hybrid	March 8, 2022	February 22, 2022
Race and Ethnicity II	Virtual	March 10, 2022	February 24, 2022
Gender and Orientation	Virtual	March 14, 2022	February 28, 2022
Disability, Age, and Education	Virtual	March 22, 2022	March 8, 2022
Impacts on Underserved Communities – Detroit, MI	In Person / Virtual Hybrid	March 30, 2022	March 16, 2022
Local Impacts on Underserved Communities	Virtual	April 1, 2022	March 18, 2022

Academic Symposium

Persons interested either in presenting work (published or ongoing) or serving on a panel discussion at the academic symposium should submit abstracts and curriculum vitae (CV) by emailing DE@usitc.gov.

Symposium Date	Abstract/CV Submission Deadline	Academic Paper Submission Deadline
April 5-6, 2022	February 11, 2022	March 1, 2022

Public Hearing

The USITC will hold a public hearing in connection with the investigation at 9:30 a.m. on April 19, 2022. Information about how to participate in the hearing will be posted on the investigation-specific web page no later than March 1, 2022.

Requests to appear at the hearing should be filed no later than 5:15 p.m. on April 1, 2021, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.  See below for important information regarding filing a request to appear at a USITC hearing.

Written Submissions

The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary of the Commission. Submissions should be submitted no later than 5:15 p.m. on May 17, 2022.

All written submissions, except for confidential business information, will be available for public inspection. See below for important information regarding the filing of written submissions for USITC investigations.

IMPORTANT:  All filings to appear at the hearing and written submissions must be made through the Commission’s Electronic Document Information System (EDIS, https://edis.usitc.gov). No in-person paper-based filings or paper copies of any electronic filings will be accepted until further notice. Persons with questions regarding electronic filing should contact the Office of the Secretary, Docket Services Division (EDIS3Help@usitc.gov), or consult the Commission’s Handbook on Filing Procedures.

Further information on the scope of the investigation is available in the USITC’s notice of investigation, dated November 24, 2021, and the second notice of investigation related to public events, dated January 12, 2022, which can be downloaded from the USITC Internet site (www.usitc.gov) or may be obtained by contacting the Office of the Secretary at commissionhearings@usitc.gov.

About this investigation:  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.

U.S. bilateral, regional, and multilateral trade agreements have had a small, positive effect on U.S. output, income, exports and imports, and employment, according to the U.S. International Trade Commission (USITC) report Economic Impact of Trade Agreements Implemented Under Trade Authorities Procedures, 2021 Report.

The USITC, an independent, nonpartisan factfinding federal agency, conducted the investigation pursuant to Section 105(f)(2) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (19 U.S.C. § 4204(f)(2)). This is the second of two reports that are required by the statute.

As requested, the Commission's report assesses the economic impact on the United States of trade agreements for which Congress has enacted an implementing bill under trade authorities procedures since January 1, 1984.

Over time, U.S. trade agreements have expanded in depth and breadth. U.S. trade agreements have maintained or expanded market access through both tariff and nontariff provisions, which both lowered barriers to trade and reinforced market certainty that such free trade regimes will remain in effect.  U.S trade agreements have also included provisions designed to address systemic problems within U.S. FTA partners’ supply chains related to workers’ rights and the environment.

Throughout the report the Commission has used a variety of quantitative and qualitative approaches to analyze the impacts of these agreements, and specific provisions within them, on U.S. industry and workers. The Commission traced the evolution of key provisions, developed economic models that estimate the magnitude of the agreements’ impacts, assessed how individual provisions and provision types have impacted specific industries through a series of case studies, and summarized the empirical literature estimating the effects of trade agreements.   

Following are highlights from the report:

• The Commission estimates that, to the extent quantifiable, the agreements have had a small but positive effect on the U.S. economy as a whole.  In 2017 (the base year), they led to an estimated increase in U.S. real GDP of $88.8 billion (0.5 percent) and in aggregate U.S. employment of 485,000 full-time equivalent (FTE) jobs (0.3 percent), based on a model that assumes the economy is at its long-run full employment level.

However, the employment gains were not distributed evenly, with the biggest gains estimated for college-educated male workers.

• The success of two provisions examined in this report – one under the U.S. Peru FTA to combat illegal logging and deforestation in Peru and the other in a NAFTA side agreement to improve collective bargaining rights in Mexico – have been limited.

However, more recent developments under the USMCA provide the opportunity for improvement in terms of the ability of agreements to address labor and environment concerns.  For example, robust labor and environment provisions under USMCA have established new mechanisms for combating these problems, although it is still too early to assess the impact of these new measures.

• Due to the Peru and Colombia FTAs, U.S. yellow corn exporters have enjoyed a tariff advantage and reduced uncertainty over competing exporters, allowing U.S. exporters to develop these markets and establish business relationships with Colombian and Peruvian purchasers.

• U.S. energy product exports to Korea rose sharply in both value and volume in recent years, as U.S. producers and exporters took advantage of broad reductions in trade barriers under the U.S.-Korea Free Trade Agreement (KORUS).

Economic Impact of Trade Agreements Implemented Under Trade Authorities Procedures, 2021 Report (Investigation No. TPA 105-008, USITC Publication 5199, June 2021) is available on the USITC website at https://www.usitc.gov/publications/332/pub5199.pdf. The Commission will be providing a limited modeling release underlying the analyses associated with this report in a few weeks.  The modeling release will be available at https://www.usitc.gov/publications/332/pub5199_appendix_f_modeling.pdf.

USITC general factfinding investigations 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.

The USITC expects to deliver the report to the Committee by January 25, 2021.

The USITC is seeking input for its new investigation from all interested parties. The USITC will hold a public hearing in connection with the investigation at 9:30 a.m. on May 7, 2020. Requests to appear at the public hearing should be filed no later than 5:15 p.m. on April 16, 2020, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington D.C. 20436.

The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary to the Commission at the above address and should be submitted no later than 5:15 p.m. on July 28, 2020. All written submissions, except for confidential business information, will be available for public inspection.

Further information on the scope of this investigation and appropriate submissions appears in the USITC’s notice of investigation, dated February 12, 2020, which can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at the above address, or at 202-205-2000.

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 report conveys 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.

The United States is the world's largest services market and was the world’s leading exporter and importer of services in 2017, reports the U.S. International Trade Commission (USITC) in its new publication Recent Trends in U.S. Services Trade, 2019 Annual Report.

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

This year’s report focuses on distribution services and includes chapters on three specific industries: logistics services, maritime transport services, and retail services. Each chapter analyzes global market conditions in the industry, examines recent trade performance, and summarizes the industry’s outlook.

The report describes trade in services via cross-border transactions through 2017 and via affiliate sales through 2016 (latest available data). Highlights include:

• In 2017, the value of U.S. commercial services exports was $778.4 billion (15 percent of global services exports), while imports totaled $520.4 billion (10 percent of global services imports). Preliminary data also indicate that in 2018, U.S. services exports increased by 3.4 percent to $805.7 billion, while imports rose by 4.3 percent to $544.3 billion.  Distribution services accounted for 6 percent of U.S. cross-border services, and 12 percent of services imports.
• Within the services sector, sales by foreign affiliates of U.S. firms – the leading channel by which many U.S. services are delivered to foreign markets – totaled $1.4 trillion in 2016 while the value of services purchased from foreign-owned affiliates in the United States totaled $876.9 billion. Distribution services accounted for about 29 percent of total sales by foreign affiliates of U.S. firms and 30 percent of total purchases from foreign-owned firms located in the United States.
• The contribution of private sector distribution services to U.S. gross domestic product (GDP) was $2.7 trillion in 2017, accounting for 17 percent of U.S. private sector GDP. From 2016 to 2017 distribution services grew by 3.2 percent, faster than the 2.1 percent growth rate experienced by private sector GDP as a whole. Distribution services were also a leading contributor to U.S. private sector employment in 2017, accounting for 21.1 percent of the private sector workforce, or 25 million full-time equivalent (FTE) employees. Wholesale trade was the largest category of distribution services, accounting for 41 percent of distribution services’ contribution to U.S. private sector GDP, followed by retail trade (39 percent). From 2016 to 2017, GDP in wholesale trade grew by roughly 2 percent, while retail trade and transportation and warehousing each grew by 4 percent.
• Distribution services encompass a wide range of activities that facilitate the movement of goods through the supply chain—from producer to end consumer.  Several industries in the distribution services sector have experienced consolidation through mergers and acquisitions over the past several years. The emergence of e-commerce over the last 10–15 years has also resulted in significant innovation in the delivery of distribution services. Further, a growing number of traditional retailers are developing the capability to analyze the data produced by customer’s interactions with their websites and apps, including data on browsing habits and purchasing activity.

The USITC hosted its 12th annual services roundtable on November 7, 2018. The discussion, summarized in the report, focused on how services trade is affected by tariffs, World Trade Organization commitments, other rules and agreements for trade in goods, and related crosscutting issues, and differences in the services economies of developed and emerging markets.

Recent Trends in U.S. Services Trade, 2019 Annual Report (Investigation No. 332-345, USITC publication 4975, September 2019) is available on the USITC's Internet site at https://www.usitc.gov/publications/industry_econ_analysis_332/2019/recent_trends_us_services_trade_2019_annual_report.htm.

Understanding General Factfinding Investigations

Section 332, Tariff Act of 1930, General Factfinding Investigations

Under section 332, the USITC investigates a wide variety of trade matters.

When: Upon request from the President, the Senate Committee on Finance, the House Committee on Ways and Means, or the USTR, or upon its own motion, the USITC initiates a factfinding investigation on any matter involving tariffs or international trade, including conditions of competition between U.S. and foreign industries.

• Read more about Understanding General Factfinding Investigations

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