The U.S. International Trade Commission (USITC) today released a report about the export competitiveness of certain apparel suppliers to the United States. This report, Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States (Inv. No. 332-602), was requested by the U.S. Trade Representative in a letter received on December 20, 2023.

The USITC, an independent, nonpartisan federal agency, examined the export competitiveness of the apparel industries in Bangladesh, Cambodia, India, Indonesia, and Pakistan, and prepared a public report that includes:

• a comparison of the relative U.S. market shares held by Bangladesh, Cambodia, India, Indonesia, and Pakistan, as well as an analysis of changing patterns in apparel trade;
• a review of general literature on the key determinants driving export competitiveness in the global apparel industry; 
• a discussion of factors affecting export competitiveness in the apparel sector; and
• country-specific profiles of the apparel industries in the above-listed countries, including information on investment, vertical integration, duty-free access to the U.S. market, wages and labor productivity, and sourcing of inputs, as well as an assessment of the export competitiveness of each country in the U.S. market.

Key findings:

• The United States is the largest single-country apparel importer in the world. In 2023, U.S. imports of apparel totaled $79.3 billion, with the majority sourced from Asia. 
• Bangladesh, Cambodia, India, Indonesia, and Pakistan are notable suppliers to the United States—ranking among the top 10 U.S. import suppliers in 2023—and are also significant exporters in the global market. These five countries accounted for a combined 27.0 percent of U.S. apparel imports in 2023.
• The market shares of major U.S. suppliers changed significantly during 2013–23. The share of imports from China, the largest exporter to the United States, fell during the period, while the market shares of other top suppliers such as Vietnam, Bangladesh, Cambodia, and Pakistan increased.
• Although Bangladesh, Cambodia, India, Indonesia, and Pakistan differ with respect to the factors of competitiveness that make them attractive to U.S. brands and retailers, they share certain similarities and are all reportedly competitive on sourcing costs. Additional key highlights concerning the five profiled countries are as follows: 
  • As the second-largest apparel exporter in the world, Bangladesh has extensive capabilities in apparel manufacturing and specializes in bulk orders of basic garments. Factors such as low labor costs, relatively low input costs, and duty-free access to large destination markets outside of the United States contribute to Bangladesh’s cost competitiveness.
  • Foreign direct investment drives Cambodia’s export-oriented apparel industry with Cambodia focused on cut, make, and trim production using imports of upstream materials. Cambodia’s apparel industry is viewed as an attractive alternative to sourcing from China and its reputation for social responsibility contributes to its competitiveness.
  • India has a long history in textiles and apparel production and remains a steady source of U.S. imports. Quality and detailed finishing contribute to the competitiveness of India’s apparel production, which is supported by a highly vertically integrated apparel industry.
  • A major supplier of a wide variety of clothing, Indonesia exports the majority of its apparel to the United States. While it is a relatively high-cost source, Indonesia produces high-value, complex garments such as business attire, outdoor apparel, and athletic wear which contributes to its competitiveness.
  • Pakistan’s cotton sector supports the country’s apparel industry, which is noted for production of high-quality denim. Vertical integration and access to domestic cotton are competitive strengths, but buyers cite geopolitical risk as a concern.

Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States (Inv. No. 332-602, USITC Publication 5543, August 2024) is available on the USITC website at: https://www.usitc.gov/publications/332/pub5543.pdf. 

 

About factfinding investigations: USITC general factfinding investigations, such as this one, cover matters related to tariffs, trade, and competitiveness 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 Commission (USITC) today released a report on the operation of the U.S. Foreign-Trade Zones (FTZ) program and similar programs (FTZ-type programs) in Canada and Mexico, as well as the impacts of these programs on employment and the cost-competitiveness of products of firms operating in U.S. 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, was requested by the U.S. Trade Representative in a letter received on December 14, 2021. 

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, reported on the operations of U.S. FTZs and FTZ-type programs, and the effects of relevant policies and practices on employment and the cost-competitiveness of goods produced in U.S. FTZs. As part of its investigation, the Commission conducted a survey of firms producing in U.S. FTZs and used the questionnaire results in its quantitative and qualitative analyses. Per the request, the report includes: 

• An overview of economic activity in FTZs operating in the United States, Canada, and Mexico, including but not limited to employment, leading sectors, shipments, exports, and foreign direct investment in FTZs;
• An overview of current FTZ policies and practices in the United States, Canada, and Mexico;
• An analysis of the cost-competitiveness effects of current FTZ policies and practices in the United States, Canada, and Mexico, including effects on relative production costs and U.S. employment; and
• Case studies on the impact of U.S. FTZs and FTZ-type programs on the automotive, upholstered furniture manufacturing, petroleum refining, pharmaceutical manufacturing, and warehousing and distribution industries. 

Detailed highlights of the Commission's findings can be found in the report's Executive Summary. 

Findings include:

• Central features of the U.S. FTZ program and FTZ-type programs in Canada and Mexico are the special tariff treatments, principally duty deferral, duty exemption, duty reduction, and duty drawback. 
• The cost-competitiveness effects of the U.S. FTZ program and FTZ-type programs in Canada and Mexico are impacted by multiple factors, including the design of the programs, national tariff regimes and applicable rates of duty, other trade policies, and material sourcing and destination markets for firms’ shipments. 
• Canada and Mexico carried out substantial unilateral tariff reductions since the early 1990s (coinciding with the signature and implementation of NAFTA) which impact the attractiveness and usage of their respective FTZ-type programs. Other examples of policies that affect the programs are the restrictions in the North American Free Trade Agreement and the United States-Mexico-Canada Agreement (USMCA) on the use of drawback and duty exemption for goods produced in FTZs and exported to USMCA partner countries. Such restrictions limit duty benefits available under U.S. FTZs and FTZ-type programs in Canada and Mexico.
• Overall, U.S FTZs improve cost-competitiveness of U.S. firms primarily through duty reduction on shipments that make customs entry in the United States and duty exemption on direct export shipments from U.S. FTZs. Firms producing in FTZs experienced duty cost savings of $1.2 billion in 2021 using these two features of U.S. FTZs. 
• Although most firms producing in U.S. FTZs experience net cost savings through use of the program, fewer firms consider their FTZ use to be a factor causing increases in investment, output, or employment in the United States. 
• The reasons for and benefits of using the programs vary across sectors. In certain sectors, such as the automotive industry, firms cannot use the U.S. FTZ program to reduce their duty costs to zero due to the non-free normal trade relation (NTR) rates of duty applicable to automotive inputs and finished goods. This may put U.S. producers at a competitive disadvantage relative to firms operating in Canada and Mexico due to free rates of duty applicable to most inputs (in the case of Canada) or to the particular features of the FTZ-type programs (in the case of Mexico).

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 (Investigation No. 332-588, USITC Publication 5423, April 2023) is available on the USITC’s website at https://usitc.gov/publications/332/pub5423.pdf.

 

 

About factfinding investigations: USITC general factfinding investigations, such as this one, cover matters related to tariffs, trade, and competitiveness 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 undertaking a new factfinding investigation that will examine the impact of tariffs on U.S. imports under section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862) and section 301 of the Trade Act of 1974 (19 U.S.C. 2232) in effect as of March 15, 2022, as reflected in the Harmonized Tariff Schedule. The Commission’s report will provide detailed information on U.S. trade, production, and prices in the industries directly and most affected by these tariffs.

The Commission was directed to conduct this investigation, Economic Impact of Section 232 and 301 Tariffs on U.S. Industries, Inv. 332-591, as part of the Omnibus Appropriations Act, which was signed into law on March 15, 2022.

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

• background information on the Section 232 and 301 tariffs and an overview of the tariffs that were in effect as of March 15, 2022; and
• an economic analysis of the impact of these tariffs on U.S. trade, production, and prices in the industries most affected by these tariffs.

The USITC expects to submit its report to Congress by March 15, 2023.

The USITC will hold a public hearing in connection with the investigation, beginning at 9:30 a.m. on July 21, 2022. Information about the hearing, including how to participate or observe, will be posted on the Commission’s website no later than June 21, 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 July 6, 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 August 24, 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 May 5, 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 or may be obtained by contacting the Office of the Secretary at commissionhearings@usitc.gov.

The U.S. International Trade Commission (USITC) is undertaking a new factfinding investigation on U.S.-Haiti trade and the impact of U.S. trade preference programs on Haiti’s economy and workers. The Commission’s report will provide an overview of Haiti’s international trade since 1980, with special emphasis of the impact of the Caribbean Basin Economic Recovery Act (CBERA), Generalized System of Preferences (GSP), Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) Act of 2006, HOPE II in 2008, and the Haiti Economic Lift Program (HELP) in 2010, and the Trade Acts of 2000 and 2002 on Haiti’s trading relationship with the United States, Haiti’s economy, and workers.

The investigation, U.S.-Haiti Trade: Impact of U.S. Preference Programs on Haiti’s Economy and Workers, Inv. No. 332-590, was requested by the U.S. House of Representatives Committee on Ways and Means (Committee) in a letter received on February 22, 2022. The Committee noted in its letter that the HOPE and HELP preference programs will expire on September 30, 2025.

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

• an overview of the Haitian economy and its competitiveness;
• an examination of the role of U.S. preference programs in shaping Haiti’s economy; and
• case studies on goods currently and historically exported from Haiti such as apparel, tropical fruits, and sporting goods, including baseballs, softballs, and basketballs.

The USITC expects to submit its report to the Committee by December 22, 2022.

The USITC will hold a public hearing in connection with the investigation via an online video conference platform, beginning at 9:30 a.m. on May 26, 2022.  More detailed information about the hearing, including how to participate, will be posted on the Commission’s website no later than April 22, 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 4, 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 June 23, 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 March 22, 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 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) has released the first of two reports on foreign censorship policies and practices that affect U.S. businesses. 

The investigations, Foreign Censorship Part 1: Policies and Practices Affecting U.S. Businesses and Foreign Censorship Part 2: Trade and Economic Effects on U.S. Businesses, were requested by the Senate Committee on Finance in a letter received on April 8, 2021, modifying its earlier letter of January 4, 2021.

As requested, in the first report, the USITC, an independent, nonpartisan federal agency, identified and described various foreign censorship practices, with particular focus on examples that U.S. businesses cite as impeding trade or investment in key foreign markets.

The report includes:

• a description of the evolution of censorship and censorship-enabling policies and practices over the past five years in six key foreign markets: China, Russia, Turkey, Vietnam, India, and Indonesia; and
• a description of elements that entail extraterritorial censorship and the roles of governmental and nongovernmental actors in implementing and enforcing censorship policies and practices in these six key foreign markets.

Detailed information on the Commission's findings can be found in the report's Executive Summary.

Foreign Censorship, Part 1: Policies and Practices Affecting U.S. Businesses (Investigation No. 332-585, USITC publication 5244, December 2021) is available on the USITC's internet site at https://www.usitc.gov/publications/332/pub5244.pdf.

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 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.

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