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News Release 21-067
Inv. No(s). 701-TA-667 and 731-TA-1559 (Preliminary)
Contact: Peg O'Laughlin, 202-205-1819
The United States International Trade Commission (USITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of organic soybean meal from India that are allegedly subsidized and sold in the United States at less than fair value.
Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel voted in the affirmative.
As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue its investigations of imports of organic soybean meal from India, with its preliminary countervailing duty determination due on or about June 24, 2021, and its preliminary antidumping duty determination due on or about September 7, 2021.
The Commission’s public report Organic Soybean Meal from India (Inv. Nos. 701-TA-667 and 731-TA-1559 (Preliminary), USITC Publication 5198, May 2021) will contain the views of the Commission and information developed during the investigations.
The report will be available after June 14, 2021; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Organic Soybean Meal from India
Investigation Nos. 701-TA-667 and 731-TA-1559 (Preliminary)
Product Description: The merchandise subject to these investigations is certified organic soybean meal. Certified organic soybean meal results from the mechanical pressing of certified organic soybeans into ground products known as soybean cake, soybean chips, or soybean flakes, with or without oil residues. Certified organic soybean meal is certified by the U.S. Department of Agriculture (USDA) National Organic Program (NOP) or equivalently certified to NOP standards or NOP-equivalent standards under an existing organic equivalency or recognition agreement. Certified organic soybean meal subject to this investigation has a protein content of 34 percent or higher.
Status of Proceedings:
1. Type of investigation: Preliminary countervailing duty and antidumping duty investigations.
2. Petitioners: Organic Soybean Processors of America, Washington D.C.; American Natural Processors, LLC, Dakota Dunes, SD; Organic Production Services, LLC, Weldon, NC; Professional Proteins Ltd., Washington, IA; Sheppard Grain Enterprises, LLC, Phelps, NY; Simmons Grain Co., Salem, OH; Super Soy, LLC, Brodhead, WI; and Tri-State Crush, Syracuse, IN.
3. USITC Institution Date: Wednesday, March 31, 2021.
4. USITC Conference Date: Wednesday, April 21, 2021.
5. USITC Vote Date: Friday, May 14, 2021.
6. USITC Notification to Commerce Date: Monday, May 17, 2021.
U.S. Industry in 2020:
1. Number of U.S. producers: 10.
2. Location of producers’ plants: Iowa, Ohio, California, New York, Wisconsin, Indiana, and Illinois.
3. Production and related workers: [1]
4. U.S. producers’ U.S. shipments: 1
5. Apparent U.S. consumption: 1
6. Ratio of subject imports to apparent U.S. consumption: 1
U.S. Imports in 2020:
1. Subject imports: 1
2. Nonsubject imports: 1
3. Leading import sources: India.
[1] Withheld to avoid disclosure of business proprietary information.
News Release 21-066
Inv. No(s). 337-TA-1265
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain fitness devices, streaming components thereof, and systems containing same. The products at issue in the investigation are described in the Commission’s notice of investigation.
The investigation is based on a complaint filed by DISH DBS Corporation, DISH Technologies L.L.C., and Sling TV L.L.C., all of Englewood, CO, on April 13, 2021. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain fitness devices, streaming components thereof, and systems containing same that infringe patents asserted by the complainants. The complainants request that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
ICON Health & Fitness, Inc., of Logan, UT;
FreeMotion Fitness, Inc., of Logan, UT;
NordicTrack, Inc., of Logan, UT;
lululemon athletica inc. of Vancouver, British Columbia, Canada;
Curiouser Products Inc. d/b/a/ MIRROR of New York, NY; and
Peloton Interactive, Inc., of New York, NY.
By instituting this investigation (337-TA-1265), 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 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 21-065
Inv. No(s). 701-TA-666 and 731-TA-1558 (Preliminary)
Contact: Peg O'Laughlin, 202-205-1819
The United States International Trade Commission (USITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of walk-behind snow throwers from China that are allegedly subsidized and sold in the United States at less than fair value.
Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel voted in the affirmative.
As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue its investigations of imports of walk-behind snow blowers from China, with its preliminary countervailing duty determination due on or about June 23, 2021, and its preliminary antidumping duty determination due on or about September 6, 2021.
The Commission’s public report Walk-Behind Snow Throwers from China (Inv. Nos. 701-TA-666 and 731-TA-1558 (Preliminary), USITC Publication 5197, May 2021) will contain the views of the Commission and information developed during the investigations.
The report will be available after June 11, 2021; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Walk-Behind Snow Throwers from China
Investigation Nos. 701-TA-666 and 731-TA-1558 (Preliminary)
Product Description: Gas-powered, walk-behind snow throwers (also known as snow blowers) are snow moving machines that are powered by internal combustion engines and primarily pedestrian-controlled. This description includes snow throwers whether self-propelled or non-self-propelled, whether finished or unfinished, whether assembled or unassembled, and whether containing any additional features that provide for functions in addition to snow throwing. Walk-behind snow throwers’ internal combustion engines are typically spark ignition, single or multiple cylinders, and air-cooled with power take off shafts.
Status of Proceedings:
1. Type of investigations: Preliminary countervailing duty and antidumping duty investigations.
2. Petitioner: MTD Products Inc. ("MTD"), Valley City, OH.
3. USITC Institution Date: Tuesday, March 30, 2021.
4. USITC Conference Date: Tuesday, April 20, 2021.
5. USITC Vote Date: Thursday, May 13, 2021.
6. USITC Notification to Commerce Date: Friday, May 14, 2021.
U.S. Industry in 2020:
1. Number of U.S. producers: 6.
2. Location of producers’ plants: Ohio, Minnesota, Mississippi, North Carolina, South Carolina, Tennessee, and Wisconsin.
3. Production and related workers: [1]
4. U.S. producers’ U.S. shipments: 1
5. Apparent U.S. consumption: 1
6. Ratio of subject imports to apparent U.S. consumption: 1
U.S. Imports in 2020:
1. Subject imports: 1
2. Nonsubject imports: 1
3. Leading import sources: China and Mexico.
[1] Withheld to avoid disclosure of business proprietary information.
News Release 21-064
Inv. No(s). 1205-13
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has recommended that the President make certain modifications to the Harmonized Tariff Schedule of the United States (HTS) to conform it with World Customs Organization (WCO) amendments to the global Harmonized System.
The recommended HTS amendments relate to a wide range of products and product groups, including, for example: flat panel display modules; 3D printers; unmanned aerial vehicles (i.e., drones); electric vehicles; tobacco products intended for inhalation without combustion; edible insect products; virgin and extra virgin olive oil; cell therapy products; rapid diagnostic test kits for detecting the Zika virus and other mosquito-borne diseases; placebos and double-blinded clinical trial kits; electronic waste (e-waste) and other hazardous waste; amusement park equipment; and cultural articles (i.e., antiquities).
The USITC’s actions are the latest step in a process that began when WCO officials approved changes to the Harmonized System nomenclature in June 2019. Countries around the world must incorporate the changes into their national nomenclature systems. The USITC maintains and updates the HTS, which is the United States' product category system.
Following expiration of a 60-day layover period before the Congress, the President is authorized to proclaim the modifications to the HTS. The amendments enter into force on January 1, 2022.
The Commission’s report, Recommended Modifications in the Harmonized Tariff Schedule, 2021, Inv. No. 1205-13, USITC Publication 5171, March 2021, is available on the USITC web site at: https://www.usitc.gov/publications/other/pub5171.pdf.
News Release 21-063
Inv. No(s). 731-TA-1505-1507, 1510-1511, 1513, and 1515 (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 prestressed concrete steel wire strand from Indonesia, Italy, Malaysia, South Africa, Spain, Tunisia, and Ukraine that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.
Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel voted in the affirmative.
As a result of the Commission’s affirmative determinations, Commerce will issue antidumping duty orders on imports of this product from Indonesia, Italy, Malaysia, South Africa, Spain, Tunisia, and Ukraine.
The Commission also made negative critical circumstances findings with regard to certain imports of this product from Indonesia. As a result, these imports will not be subject to retroactive antidumping duties.
The Commission’s public report Prestressed Concrete Steel Wire Strand from Indonesia, Italy, Malaysia, South Africa, Spain, Tunisia, and Ukraine (Inv. Nos. 731-TA-1505-1507, 1510-1511, 1513, and 1515 (Final), USITC Publication 5196, May 2021) will contain the views of the Commission and information developed during the investigations.
The report will be available by June 14, 2021; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Prestressed Concrete Steel Wire Strand from Indonesia, Italy, Malaysia, South Africa, Spain, Tunisia, and Ukraine
Investigation Nos. 731-TA-1505-1507, 1510-1511, 1513, and 1515 (Final)
Product Description: The merchandise covered by these investigations is prestressed concrete steel wire strand (PC strand), produced from wire of non-stainless, non-galvanized steel, which is suitable for use in prestressed concrete (both pre-tensioned and post-tensioned) applications. The product definition encompasses covered and uncovered strand and all types, grades, and diameters of PC strand. PC strand is normally sold in the United States in sizes ranging from 0.25 inches to 0.70 inches in diameter.
Status of Proceedings:
1. Type of investigation: Final antidumping duty investigations.
2. Petitioners: Insteel Wire Products Company, Mount Airy, NC; Sumiden Wire Products Corporation, Dickson, TN; and, Wire Mesh Corporation, Houston, TX.
3. USITC Institution Date: Thursday, April 16, 2020.
4. USITC Hearing Date: Thursday, December 10, 2020.
5. USITC Vote Date: Tuesday, May 11, 2021.
6. USITC Notification to Commerce Date: Monday, May 24, 2021.
U.S. Industry in 2019:
1. Number of U.S. producers: 5.
2. Location of producers’ plants: Arkansas, California, Florida, South Carolina, Tennessee, and Texas.
3. Production and related workers: 378.
4. U.S. producers’ U.S. shipments: [1]
5. Apparent U.S. consumption: 1
6. Ratio of subject imports to apparent U.S. consumption: 1
U.S. Imports in 2019:
1. Subject imports: $114 million.
2. Nonsubject imports: 1
3. Leading import sources: Malaysia, Spain, Turkey, Italy, and Tunisia.
[1] Withheld to avoid disclosure of business proprietary information.
News Release 21-062
Inv. No(s). 337-TA-1264
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain high-potency sweeteners, processes for making same, and products containing same. The products at issue in the investigation are described in the Commission’s notice of investigation.
The investigation is based on a complaint filed by Celanese International Corporation of Irving, TX; Celanese (Malta) Company 2 Limited of Qormi, Malta; and Celanese Sales U.S. Ltd. of Irving, TX, on April 8, 2021. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain high-potency sweeteners, processes for making same, and products containing same that infringe patents asserted by the complainants. The complainants request that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Anhui Jinhe Industrial Co., Ltd., of Chuzhou City, Anhui, China;
Jinhe USA LLC of Chicago, IL;
Agridient, Inc. of Farmington Hills, MI;
Apura Ingredients Inc. of Chino, CA;
Crossroad Ingredients of Fairfield, NJ;
Hhoya USA Inc. of New York, NY;
Ingredis US LLC of Plainsboro, NJ;
NiuSource Inc. of Chino, CA;
Prinova US LLC of Hanover Park, IL;
Prosweetz Ingredients Incorporated d/b/a Panasource Ingredients Inc. of Edison, NJ;
Suzhou-Chem Inc. of Wellesley, MA; and
UMC Ingredients, LLC fka JRS International LLC of Lyndhurst, NJ.
By instituting this investigation (337-TA-1264), 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 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 21-061
Inv. No(s). 337-TA-1263
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain televisions, remote controls, and components thereof. The products at issue in the investigation are described in the Commission’s notice of investigation.
The investigation is based on a complaint filed by Roku, Inc., of San Jose, CA, on April 8, 2021 and amended on April 27, 2021. The complaint, as amended, alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain televisions, remote controls, and components thereof that infringe patents asserted by the complainant. The complainant requests that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Universal Electronics, Inc., of Scottsdale, AZ;
Gemstar Technology (Qinzhou) Co. Ltd. of Qinzhou, China;
Gemstar Technology (Yangzhou) Co. Ltd. of Yanzhou, China;
C.G. Development Ltd. of Kowloon, Hong Kong;
Universal Electronics BV of Enschede, Netherlands;
UEI Brasil Controles Remotos Ltda. of Manaus, Brazil;
CG Mexico Remote Controls, S. de R.L. de C.V. of Nuevo Leon, Mexico;
LG Electronics Inc. of Seoul, Republic of Korea;
LG Electronics USA, Inc., of Englewood Cliffs, NJ;
Samsung Electronics Co., Ltd., of Suwon-si, Republic of Korea;
Samsung Electronics America, Inc., of Ridgefield Park, NJ;
Charter Communications, Inc., of Stamford, CT;
Charter Communications Operating, LLC, of St. Louis, MO;
Spectrum Management Holding Company, LLC, of Stamford, CT;
Altice USA, Inc., of Long Island City, NY;
Cablevision Systems Corp. of Bethpage, NY;
Cequel Communications, LLC d/b/a Suddenlink Communications of Long Island City, NY; and
Wideopenwest, Inc., of Englewood, CO.
By instituting this investigation (337-TA-1263), 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 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 21-060
Inv. No(s). 701-TA-465 and 731-TA-1161 (Second Review)
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping and countervailing duty orders on imports of certain steel grating from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
As a result of the Commission’s affirmative determinations, the existing orders on imports of this product from China will remain in place.
Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel voted in the affirmative.
Today’s action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. See the attached page for background on these five-year (sunset) reviews.
The Commission’s public report Certain Steel Grating from China (Inv. Nos. 701-TA-465 and 731-TA-1161 (Second Review), USITC Publication 5195, May 2021) will contain the views of the Commission and information developed during the reviews.
The report will be available by May 9, 2021; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.
BACKGROUND
The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time.
The Commission’s institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.
The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews. Commissioners base their injury determination in expedited reviews on the facts available, including the Commission’s prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.
The five-year (sunset) reviews concerning Certain Steel Grating from China were instituted on October 1, 2020.
On January 4, 2021, the Commission voted to conduct expedited reviews. Commissioners David S. Johanson, Rhonda K. Schmidtlein, Jason E. Kearns, Randolph J. Stayin, and Amy A. Karpel concluded that the domestic group response was adequate and the respondent group response was inadequate and voted for expedited reviews.
A record of the Commission’s vote to conduct expedited reviews is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by telephone by calling 202-205-1802.
News Release 21-059
Inv. No(s). 332-585 and 332-586
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) is changing the title, scope, and schedule of its recently instituted investigation into the impact of foreign censorship on U.S. businesses. The Commission is also instituting a second investigation related to the same topic.
The USITC, an independent, nonpartisan, factfinding federal agency, is making these changes at the request of the U.S. Senate Committee on Finance, received in a letter on April 7, 2021. (The Committee requested the original investigation on January 4, 2021.)
First report
The Commission’s ongoing investigation, Inv. No. 332-585, is being retitled Foreign Censorship Part 1: Policies and Practices Affecting U.S. Businesses.
As requested, in its first report, the USITC will:
- identify various foreign censorship practices, in particular any examples that U.S. businesses believe impede trade or investment in key foreign markets; and
- provide descriptions that include, to the extent practicable, the evolution of censorship policies and practices over the past five years in key foreign markets; any elements that entail extraterritorial censorship; and the roles of governmental and non-government actors in implementation and enforcement of the practices.
The USITC expects to transmit its first report to the Committee no later than December 30, 2021.
Second report
The USITC is instituting a second investigation, Foreign Censorship Part 2: Trade and Economic Effects on U.S. Businesses, Inv. No. 332-586.
As requested, in its second investigation, the USITC will provide an analysis of the trade and economic effects of the policies and practices identified in the first report on affected U.S. businesses and their global operations. The analysis will include the use of survey data and, to the extent practicable, will provide information on the quantitative and qualitative impacts of the identified policies, including (where identifiable):
- impact on employment;
- direct costs (e.g., compliance and entry costs);
- foregone revenue and sales;
- self-censorship; and
- other effects the Commission considers relevant for the Committee to know.
The USITC expects to submit its second report to the Committee by July 5, 2022.
Joint public hearing
The USITC will hold a public hearing in connection with both investigations at 9:30 a.m. on July 1, 2021. (This hearing replaces the previously announced September 14, 2021, hearing in connection with 332-585.) Because COVID-19 mitigation measures are in effect, the public hearing will be held via the WebEx videoconference platform. Information about how to participate in the hearing will be posted on the Commission’s website no later than May 27, 2021, 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 June 17, 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 for the first investigation should be submitted no later than 5:15 p.m. on July 22, 2021. Submissions for the second investigation should be submitted no later than 5:15 p.m. on January 14, 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 investigations and appropriate submissions is available in the USITC’s notice of investigation, dated May 6, 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 commissionhearings@usitc.gov.
About these investigations: 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.
News Release 21-058
Inv. No(s). 332-345
Contact: Peg O'Laughlin, 202-205-1819
The United States is the world's largest services market and was the world’s leading exporter and importer of services in 2019, reports the U.S. International Trade Commission (USITC) in its new publication Recent Trends in U.S. Services Trade, 2021 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 professional services and includes sections detailing trends in six specific industries: research and development services, legal services, management consulting services, education services, architecture and engineering services, and healthcare services. Each section analyzes global market conditions in the industry and summarizes the industry’s outlook.
The report describes trade in services via cross-border transactions through 2019 and via affiliate sales through 2018 (latest available data). Highlights include:
- The services sector represents the largest sector of the U.S. economy, and the United States is the world’s top cross-border exporter and importer of services. In 2019, U.S. exports of private services totaled $853.3 billion, whereas imports totaled $564.3 billion.
- 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 $1.7 trillion in 2018 while the value of services purchased from foreign-owned affiliates in the United States totaled $1.2 trillion.
- The professional services sector includes a variety of activities that generally require highly skilled labor and, in many cases, specific licenses or credentials are required to provide the services. Professional services accounted for 34 percent of total cross-border services exports and 25 percent of imports in 2019. They represented 15 percent of total sales by the foreign affiliates of U.S. firms and 15 percent of total purchases from the U.S. affiliates of foreign firms.
- In recent years, some professional service sectors have changed the way their services are provided, whether by introducing new business models and suppliers or by shifting from providing services in person to providing them online. In particular:
- legal services - alternative legal service providers (ALSPs), a diverse group of companies including legal process outsourcing firms (LPOs) and the Big Four accounting firms, have outpaced the growth of traditional law firms;
- management consulting (MC) - an evolving trend towards the digital supply of MC services preceded the COVID-19 pandemic, but COVID-19 travel restrictions have hastened this trend, and MC providers now mostly supply services remotely;
- education - the volume of university-level foreign students studying in the United States has experienced systemic declines, which were further aggravated by COVID-19 in 2020.
- For other professional services sectors, changing consumer preferences due to the COVID-19 pandemic have driven recent developments, including:
- architecture and engineering - COVID-19 has created strong demand for project design in essential business segments, such as hospitals, water management, and pharmaceutical manufacturing, and for pandemic-related redesign services for medical, home, education, and office space;
- healthcare - the adoption of telemedicine in the United States has accelerated since March 2020, as the share of U.S. consumers who have used telemedicine went up by 35 percent in 2020 from 11 percent in 2019.
The USITC hosted its 14th annual services roundtable, which was held virtually for the first time on October 27, 2020. The discussion, summarized in the report, focused on the impact of the COVID-19 global pandemic on demand, output, modes of supply, business practices, labor, and productivity in U.S. and global services industries, and the impact of establishing a presence in one or more foreign markets on U.S. services firms’ operations and overall employment in the United States.
Recent Trends in U.S. Services Trade, 2021 Annual Report (Investigation No. 332-345, USITC publication 5129, April 2021) is available on the USITC's Internet site at https://www.usitc.gov/publications/332/pub5192.pdf.