Global Manufacturing Economic Update: November 2016

A Publication of the National Association of Manufacturers

MONDAY ECONOMIC REPORTNAM/IndustryWeek Survey of Manufactures Business Outlook by Quarter, 2012-2014

As financial markets digest the economic and political ramifications of a Donald Trump victory in the U.S. presidential election, there will likely be some lingering uncertainties that could increase market volatility, at least in the short term. At the same time, there were some signs of progress to report in recent data, even as manufacturers continue to grapple with global headwinds. For instance, the J.P. Morgan Global Manufacturing PMI increased from 51.0 in September to 52.0 in October, its highest level since October 2014, with strong accelerations in both new orders and output. In addition, 11 of the top 15 markets for U.S.-manufactured goods had growing manufacturing sectors in October, up from seven in August and nine in September. As such, trends are moving in the right direction. The strongest manufacturing growth among our top trading partners was in the Netherlands, Germany and the United Kingdom. In contrast, Brazil, Hong Kong and South Korea remained mired in negative territory.

While there have been some improvements in international trends, manufacturers have continued to struggle in growing demand overseas. Beyond soft economic growth in key markets, one of the other larger factors suppressing global sales has been the U.S. dollar, which has appreciated nearly 21 percent since mid-2014 against major currencies. Indeed, U.S.-manufactured goods exports have fallen 5.2 percent year to date in 2016 through the third quarter relative to the same time period in 2015, according to new seasonally adjusted data from TradeStats Express. Moreover, year-to-date exports were lower in eight of the top 10 markets. On the positive side, the U.S. trade deficit fell to its lowest level since February 2015.The reduced headline number stemmed from increased goods exports, fewer goods imports and a higher service-sector trade surplus, with the latter at its highest point so far this year.

As noted above, there has been continued strength in the United Kingdom’s manufacturing sector despite ongoing Brexit uncertainties. Those concerns were heightened when the U.K. government lost an important ruling, which said that Theresa May’s government cannot invoke Article 50 without Parliament’s approval. Prime Minister May plans to appeal that ruling to the country’s Supreme Court, but either way, she has said that she plans to move forward with the previously outlined timetable. The process of leaving the European Union could take up to two years, meaning that the United Kingdom could be out by mid-2019. Given recent developments, the British pound has appreciated 1.7 percent over the past three weeks, spurred on by the court ruling. Nonetheless, the pound has fallen 19.4 percent since the June 23 Brexit vote. This should provide a buffer to help the British manufacturing sector and the U.K. economy (but make U.S. exports to Britain more expensive).

Beyond the United Kingdom, several markets reported stronger manufacturing activity in the past month. The Caixin China General Manufacturing PMI increased to its fastest pace in more than two years on better demand and output figures. Nonetheless, there were also some lingering weaknesses, including exports and hiring, and much of the underlying data continue to reflect decelerating activity in China. Meanwhile, the Markit Eurozone Manufacturing PMI rose to a 22-month high, as the continent continued to brush off post-Brexit worries. The stronger Eurozone data were buoyed by improvements in both Germany and France, with the latter growing for the first time since February and expanding at a two-and-a-half-year high. On a year-over-year basis, the Eurozone economy has grown 1.6 percent since the third quarter of 2015. Closer to home, Canadian manufacturing activity rebounded in October after slowing considerably in September, with improvements in every region of the country. However, Canadian manufacturing output has been very soft over the past 12 months, up just 0.4 percent year-over-year, and employment in the sector was down 7,500 in October and 1,500 year-over-year.

In addition, the emerging markets expanded at the fastest rate since February 2015.It was the third straight month with expanding activity, rebounding after contracting in 14 of the prior 15 months. A number of markets showed relative strength in their manufacturing sectors in October, with India and Russia reaching multiyear highs on stronger demand and production activity. The Czech Republic and Taiwan also cited improved manufacturing performance for the month. At the other end of the spectrum, Indonesia returned to negative territory for the second time in the past four months (down from 50.9 to 48.7), and several other emerging markets remain stuck in contraction.

The Trans-Pacific Partnership (TPP), export financing, ongoing trade negotiations and challenges created by foreign government market-distorting activities continue to be top issues for manufacturers as Congress is set to begin its lame-duck session next week and the Obama administration seeks to complete several trade initiatives that it has undertaken. The new NAM-sought Miscellaneous Tariff Bill (MTB) process is now accepting petitions, which are due by December 12.

Chad Moutray, Ph.D., CBE
Chief Economist
National Association of Manufacturers

Global Economic and Trade Trends

Global manufacturing activity expanded at its fastest pace in two years.
The J.P. Morgan Global Manufacturing PMI increased from 51.0 in September to 52.0 in October, its highest level since October 2014. It represented notable progress after essentially stagnating as recently as May. New orders (up from 51.3 to 52.8) and output (up from 51.9 to 53.6) both accelerated strongly in the latest data, with gains also seen in employment (up from 50.2 to 50.7) and exports (up from 50.7 to 51.0). After contracting in six of the first eight months of 2016, hiring appears to have stabilized, expanding somewhat in three of the past four months. There is a similar trend line for exports, rising for the fourth consecutive month.

There was also some progress seen when looking at the top 15 markets for U.S.-manufactured goods. Eleven of those markets experienced growth in their manufacturing sectors in October, up from seven in August and nine in September. (There is no manufacturing PMI for comparison purposes for Belgium, which is our 10th-largest trading partner.) The two countries that shifted into expansion territory for the month were Australia (up from 49.8 to 50.9) and France (up from 49.7 to 51.8). French manufacturers reported the strongest expansions in output since March 2014, with exports growing at their quickest rate since May 2011. Both were encouraging signs for a country that has been in contraction for much of the past two years. At the same time, Australian sentiment bounced back in October after contracting in both August and September but remained quite subdued.

The strongest manufacturing growth among our top trading partners was in the Netherlands (up from 53.4 to 55.7), Germany (up from 54.3 to 55.0) and the United Kingdom (down from 55.5 to 54.3), with the latter brushing aside “Brexit” concerns despite some easing in October. In contrast, Brazil (up from 46.0 to 46.3), Hong Kong (down from 49.3 to 48.2) and South Korea (up from 47.6 to 48.0) remained mired in negative territory.

The U.K. government lost an important ruling regarding Brexit, but it intends to stay the course of triggering Article 50, which would start the process of “divorce” from the European Union, by the end of March 2017.
The ruling said that Prime Minister Theresa May’s government cannot invoke Article 50 without Parliament’s approval. Prime Minister May plans to appeal that ruling to the country’s Supreme Court, but either way, she has said that she plans to move forward with the previously outlined timetable. The process of leaving the European Union could take up to two years, meaning that the United Kingdom could be out by mid-2019.

The British pound has appreciated 1.7 percent over the past three weeks, spurred on by the court ruling. Nonetheless, the pound has fallen 19.4 percent since the June 23 Brexit vote. This should provide a buffer to help the British manufacturing sector and the U.K. economy (but make U.S. exports to Britain more expensive). Beyond the United Kingdom, the dollar remains elevated, complicating manufacturers in the United States as they seek to increase international demand. The trade-weighted index of the U.S. dollar relative to other major currencies has increased 22.6 percent since the end of June 2014.

Looking at Europe as a whole, manufacturing activity accelerated in October.
The Markit Eurozone Manufacturing PMI increased from 52.6 in September to 53.5 in October, its fastest pace since January 2014. As such, the continent continued to brush off post-Brexit worries, with activity accelerating in October at a modest pace. Overall, the headline PMI has trended higher since bottoming out earlier in the year at 51.2 in February. The underlying indices were mostly higher, including new orders (up from 53.4 to 53.8), output (up from 53.8 to 54.6), exports (up from 53.4 to 53.8) and employment (up from 52.1 to 53.7).

The stronger Eurozone data were buoyed by improvements in both Germany (up from 54.3 to 55.0) and France (up from 49.7 to 51.8). It was the first time since February that manufacturers in France reported positive growth, expanding at a two-and-a-half-year high. Other European nations with notable growth in October included Austria (up from 53.5 to 53.9), Ireland (up from 51.3 to 52.1), the Netherlands (up from 53.4 to 55.7) and Spain (up from 52.3 to 53.3). There was also positive growth reported for Italy (down from 51.0 to 50.9) and the United Kingdom (down from 55.5 to 54.3), albeit with both easing somewhat for the month. In contrast to those markets, Greece contracted for the second straight month and for the seventh time year to date (down from 49.2 to 48.6).

Eurozone real GDP grew 0.3 percent in the third quarter, mirroring the rate in the second quarter. On a year-over-year basis, the Eurozone economy has grown 1.6 percent since the third quarter of 2015. We will get September industrial production data on November 14, which we hope will build on the strong rebound in August. Production in the sector has risen 1.8 percent over the past 12 months. At the same time, retail sales declined 0.2 percent in September but have increased 1.1 percent year-over-year. The unemployment rate dropped from 10.1 percent in August to 10.0 percent in September, its lowest level since June 2011. Meanwhile, the European Central Bank has worried about deflationary pressures over much of the past year, but the annual inflation rate rose to 0.5 percent in October, its highest level since June 2014.

China’s manufacturing sector picked up some steam, too.
The Caixin China General Manufacturing PMI increased from 50.1 in September to 51.2 in October, its fastest pace in more than two years. Growth in new orders (up from 50.8 to 52.6) and output (up from 50.9 to 53.3) helped to buoy the headline number, with the index for production at its highest level since March 2011. As such, Chinese manufacturers were more upbeat in October—a sharp contrast for a measure that contracted for much of the past few years. Still, there were also some lingering weaknesses, including exports (down from 50.1 to 49.7) and hiring (up from 47.2 to 47.8). Exports have contracted in 10 of the past 11 months, whereas employment has now been negative for three consecutive years.

Meanwhile, the official manufacturing PMI data from the National Bureau of Statistics of China rose from 50.4 in September to 51.2 in October, representing continued progress after contracting in July. This latest survey reflected improved sentiment for large firms, whereas small and medium-sized manufacturers continued to struggle.

Real GDP grew 6.7 percent year-over-year in the third quarter, the same as the second quarter. We expect 6.6 percent growth in the fourth quarter. On November 12, we will receive updates on industrial production, retail sales and fixed-asset investments for October. Much of the underlying data continue to reflect decelerating activity. For instance, industrial production increased 6.1 percent year-over-year in September, down from 6.3 percent in August and 6.8 percent in March. Similarly, retail sales (10.7 percent) and fixed-asset investments (8.2 percent) year-over-year have also eased substantially in their growth rates relative to the paces at the end of last year. With that said, retail spending has actually picked up since the summer (i.e., 10.2 percent year-over-year in June), making it one of the brighter spots in a Chinese economy that is otherwise slowing.

With better Chinese data, the emerging markets expanded at the fastest rate since February 2015.
The Markit Emerging Markets Manufacturing Index improved from 50.1 to 50.9. It was the third straight month with expanding activity, rebounding after contracting in 14 of the prior 15 months. In October, there was modest growth for manufacturing new orders (up from 50.6 to 51.8) and output (up from 50.7 to 52.4) in the emerging markets, with the latter at its highest level since July 2014. At the same time, exports (down from 49.8 to 49.5) and employment (up from 48.5 to 48.6) continued to contract. Meanwhile, the forward-looking composite index for future output remained mostly positive about activity over the next six months (down from 60.0 to 59.6).

The country-by-country data were mixed. A number of markets showed relative strength in their manufacturing sectors in October, with India (up from 52.1 to 54.4) and Russia (up from 51.1 to 52.4) reaching multiyear highs on stronger demand and production activity. China (up from 50.1 to 51.2), the Czech Republic (up from 52.0 to 53.3) and Taiwan (up from 52.2 to 52.7) also cited improved manufacturing performance for the month. At the same time, a number of nations noted eased growth in October, including Kenya (down from 53.5 to 52.0), the Philippines (down from 57.5 to 56.5), Poland (down from 52.2 to 50.2), Saudi Arabia (down from 55.3 to 53.2), South Africa (down from 50.7 to 50.5), the United Arab Emirates (down from 54.1 to 53.3) and Vietnam (down from 52.9 to 51.7). Of those decelerating markets, Poland perhaps stands out the most, as it was not that long ago that it was one of the standouts in terms of emerging markets growth.

At the other end of the spectrum, Indonesia returned to negative territory for the second time in the past four months (down from 50.9 to 48.7). Other emerging markets remain stuck in contraction. Those countries include Brazil (up from 46.0 to 46.3), Egypt (down from 46.3 to 42.0), Hong Kong (down from 49.3 to 48.2), Lebanon (down from 45.1 to 43.8), Malaysia (down from 48.6 to 47.2), Myanmar (up from 48.1 to 49.0), Nigeria (up from 46.8 to 47.5), South Korea (up from 47.6 to 48.0) and Turkey (up from 48.3 to 49.8).

After slowing significantly in September, Canadian manufacturing sentiment rebounded somewhat in October.
The Markit Canada Manufacturing PMI increased from 50.3, its slowest pace since February, to 51.1. The key takeaway in this report—beyond the rebound—was that manufacturing activity has now expanded for eight straight months after contracting in 11 of the 13 months prior to that. However, the underlying October data were mixed. New orders (up from 49.7 to 50.4) and employment (up from 49.5 to 50.9) both returned to positive territory in the latest survey, but exports (up from 48.5 to 49.9) and output (down from 50.4 to 49.9) were ever-so-slightly negative on net in October. It was the fifth time in the past six months that export sales decreased—perhaps surprising given the relative softness of the Canadian dollar.

On a regional basis, different areas of the country tended to mirror the upward movement in the national headline number. The expansions improved in Alberta and British Columbia (up from 50.0 to 50.7), Ontario (up from 50.3 to 51.4) and Quebec (up from 49.5 to 51.0), with activity in the rest of Canada stabilizing (up from 49.2 to 50.0).

Real GDP increased 0.2 percent in August, extending the 0.4 percent gain in July. Output in the manufacturing sector rose 0.3 percent in August on stronger food, beverage and tobacco products, machinery and primary metals production. However, manufacturing output has been very soft over the past 12 months, up just 0.4 percent year-over-year. At the same time, retail sales fell 0.1 percent in the latest data, with 1.6 percent growth since August 2015. Meanwhile, the unemployment rate was unchanged at 7.0 percent in October, but manufacturers lost 7,500 net workers for the month. The sector has lost 1,500 employees year-over-year.

Mexican manufacturing activity continued to expand somewhat modestly but perhaps less than desired.
The Markit Mexico Manufacturing PMI edged down from 51.9 to 51.8. That figure represented both progress since July (50.6) but some easing from faster growth in May (53.6). The underlying data reflected modest growth, with faster expansions for output (up from 51.7 to 53.0) and exports (up from 51.6 to 53.0) but some easing for new orders (down from 53.4 to 52.7) and hiring (down from 51.9 to 51.5). Despite continued expansion for manufacturers, overall growth remains somewhat subdued.

Real GDP increased 2.5 percent year-over-year in the second quarter, up from 2.4 percent in the first quarter. Third-quarter data will be released on November 23. Growth in Mexico is expected to remain around 2.3 percent in 2016, picking up to 2.6 percent in 2017. Meanwhile, Mexican industrial production rose 0.3 percent year-over-year in August, recovering some of the 1.3 percent decline in July. Output in the manufacturing sector grew more strongly in August, up 3.7 percent over the past 12 months. New production data will come out on November 11.

U.S.-manufactured goods exports continue to struggle.
New seasonally adjusted data from TradeStats Express indicated that U.S.-manufactured goods exports totaled $942.86 billion through the third quarter of 2016, down 5.17 percent from the $994.28 billion pace in the same time period in 2015. Moreover, exports were lower in eight of the top 10 markets for U.S.-manufactured goods year to date. This included Canada (down 4.82 percent), Mexico (down 2.66 percent), China (down 5.05 percent), Japan (down 2.54 percent), Germany (down 0.78 percent), South Korea (down 7.66 percent) and Belgium (down 4.10 percent). The United Kingdom (up 0.71 percent) and the Netherlands (up 1.28 percent) were the exceptions, with both seeing year-to-date gains through the third quarter.

The U.S. trade deficit fell to its lowest level since February 2015.
The trade deficit declined from $40.46 billion in August to $36.44 billion in September, its lowest level since February 2015. The reduced headline number stemmed from increased goods exports (up from $125.48 billion to $126.13 billion), fewer goods imports (down from $185.61 billion to $183.65 billion) and a higher service-sector trade surplus (up from $19.67 billion to $21.08 billion), with the latter number at its highest point so far this year. The 2016 year-to-date average for the U.S. trade deficit was $40.77 billion in September, down 2.23 percent from the $41.70 billion average for 2015 as a whole.

Looking more closely at the underlying data, goods exports were higher on net in September but mixed. Increased exports for capital goods (up $1.58 billion), consumer goods (up $738 million) and industrial supplies and materials (up $497 million) were enough to offset declines for foods, feeds and beverages (down $1.73 billion) and automotive vehicles and parts (down $458 million). Exports for foods, feeds and beverages would have increased if not for a sharp decrease in exports for soybeans (down $2.02 billion). At the same time, goods imports were lower for capital goods (down $1.69 billion), consumer goods (down $837 million) and industrial supplies and materials (down $39 million). Those decreases more than offset increases for automotive vehicles and parts (up $1.18 billion) and foods, feeds and beverages (up $4 million).

International Trade Policy Trends

Potential TPP consideration during lame duck facing pushback from congressional leaders.
Following this week’s election, key leaders in Congress, including Senate Majority Leader Mitch McConnell (R-KY) and House Ways and Means Chairman Kevin Brady (R-TX), have indicated that TPP cannot be considered during the lame-duck session. Chairman Brady, in particular, noted the lack of agreement between the Obama administration and Hill leaders to resolve outstanding issues and indicated his interest in working with President-elect Trump on a path going forward. The NAM is continuing its discussions with the administration and Congress on prospects, while working with its co-leaders of the U.S. Coalition for TPP. Over the past month, the NAM has been engaged in substantial activity, including meetings with key congressional offices, amplifying broad business support for the TPP, as well as explaining through NAM Director of International Trade Policy Ken Monahan’s “TPP in Real Life” blog series the barriers that manufacturers in the United States face in the TPP countries. For more information on next steps on the TPP, contact Ken.

Manufacturers intensify work with Congress to ensure a fully functioning Export-Import (Ex-Im) Bank.
The Ex-Im Bank remains unable to process certain transactions, undermining the ability of U.S. exporters and their supply chains to compete and win in a tough global marketplace. Despite strong efforts by the NAM and the broader business community in support of legislation to adjust the quorum requirement that is preventing the Ex-Im Bank from reviewing and approving loans of more than $10 million, Congress has so far this year failed to address this issue. The business community has been continuing to urge Congress to include, as part of the final fiscal 2017 spending legislation, language—already approved by both the House and Senate Appropriations committees in July—that will temporarily adjust the quorum requirement and ensure that the Ex-Im Bank can function fully for all U.S. exporters. Visit www.nam.org/exim to learn more and www.exportersforexim.org to use the updated Call to Action to contact your members of Congress. To learn more about the NAM’s advocacy efforts on this issue, contact NAM Director of Trade Facilitation Policy Lauren Wilk.

U.S. International Trade Commission (ITC) accepting MTB petitions.
On October 14, the ITC began accepting on its web portal petitions to eliminate or reduce U.S. import tariffs for three years on those products not made in the United States or available in sufficient commercial quantities and that will result in an annual revenue loss that will not exceed $500,000 per product. Petitions will be accepted until 5:15 p.m. EST on December 12. Additional details on the new MTB process are included in a recent ITC Federal Register notice, the ITC’s Handbook on MTB Filing Procedures, the ITC’s Before You File: How to Prepare for Filing a Miscellaneous Tariff Bill Petition or Comment and the ITC’s interim rules. If you have any questions about the MTB and the new MTB process, contact NAM Director of International Trade Policy Ken Monahan.

Environmental Goods Agreement (EGA) talks continue to intensify, as the United States, 16 other World Trade Organization (WTO) members seek deal in 2016.
At the 17th round of EGA negotiations that took place the week of October 17 in Geneva, Switzerland, and on the sidelines of a WTO Mini-Ministerial that took place October 21–22 in Oslo, Norway, discussions continued on the products nominated for duty-free treatment by the United States and other countries. Discussions between the negotiating parties continue to intensify as all sides seek to reach an agreement by the end of this year, with the next round and ministerial scheduled for late November through early December. The NAM continues to push for ambitious outcomes that include manufacturers’ priorities. For more information on the NAM’s role as co-chair of the U.S.-based Coalition for Green Trade, contact NAM Director of International Trade Policy Ken Monahan.

The European Union signs trade deal with Canada, while the path for U.S.–EU trade negotiations remains unclear.
After resolving some last-minute objections from Belgium, the European Union and Canada signed the Comprehensive Economic and Trade Agreement (CETA) on October 30, which must now be approved by the European Parliament before the agreement can be provisionally applied. After Parliament acts, most elements of the CETA would take effect (except the investment court provisions), pending full ratification by EU member states, a process that could take years.

The path forward for the Transatlantic Trade and Investment Partnership (TTIP) negotiations is, however, unclear, particularly with the upcoming negotiations for the United Kingdom to exit the European Union, as well as French and German elections expected next year. No further TTIP rounds have been announced following the 15th round in October, and no major deal is expected by the end of the Obama administration. For more information on the NAM’s TTIP advocacy efforts, contact NAM Director of International Trade Policy Ken Monahan.

Final U.S.–India dialogue shows positive engagement, limited concrete deliverables on priority manufacturing issues.
The United States and India concluded the Trade Policy Forum (TPF) on October 20, marking the last of a series of high-level engagements that have already taken place this year, including the August Strategic and Commercial Dialogue and Indian Prime Minister Narendra Modi’s June visit to the United States. This year’s dialogue showed better engagement on priority manufacturing issues, such as intellectual property, investment and trade facilitation, but the final joint statement showed the work that remains, as it included only a handful of the types of concrete, actionable outcomes for which the NAM has long advocated. Highlights of the TPF dialogue included best practice exchanges on manufacturing investment, standards and food safety; a joint acknowledgement of the importance of intellectual property, cybersecurity and reducing red tape; and specific pledges for follow-up action on trade secrets, software patents and trade facilitation. This dialogue, hosted by the U.S. Trade Representative and the Indian Minister of Commerce and Industry, closes the book on high-level commercial dialogues under President Obama and Prime Minister Modi. As the United States and India think through potential engagement in 2017, the NAM will continue to urge both sides to engage robustly and make tangible, benchmarked progress. Real deliverables—not just more working groups and dialogues—remain the litmus test that many industries in the United States will use to judge the potential growth of the commercial relationship. For more on the NAM’s work on India, contact NAM Director of International Business Policy Ryan Ong.

China’s new cybersecurity law prompts concern among manufacturers.
On November 7, China’s legislature—the National People’s Congress—approved a controversial new cybersecurity law that raises major questions for a broad swath of manufacturers that manufacture or use security infrastructure, or that generate data in China. The NAM has been closely engaged on this issue, flagging as a key China concern in recent submissions on China’s WTO compliance and foreign trade barriers, and joined other associations in an August 2016 letter to senior Chinese officials raising concerns about the then-draft law. Concerns have included troubling data localization requirements, an expansive definition of “critical information infrastructure” subject to security checks and vague security review requirements that could function as effective trade barriers for foreign products. The final law largely leaves these restrictions in place, making only minor changes to the types of data that foreign businesses need to keep in China. The law is scheduled to go into effect on June 1, 2017, but the Cyberspace Administration of China is likely to release implementing details over the next few months. The NAM will continue to monitor this issue and weigh in with the U.S. and Chinese governments. For more on the NAM’s work on China, contact NAM Director of International Business Policy Ryan Ong.

U.S.–Argentina trade relations move forward with meetings and consideration of reapplication of trade preferences.
On November 7, U.S. Trade Representative Michael Froman and Argentine Minister of Foreign Affairs Susana Malcorra and Minister of Production Francisco Cabrera co-chaired the inaugural meeting of the Council on Trade and Investment, created by the U.S.–Argentina Trade and Investment Framework Agreement. At the meeting, the United States and Argentina discussed a broad range of issues, including WTO dispute settlement, trade facilitation, reducing global excess steel capacity, geographical indications, industrial designs and the importance of intellectual property protections for small and medium-sized enterprises. Ambassador Froman also announced that the Office of the USTR will initiate a public review process to determine whether Argentina meets eligibility criteria under the U.S. Generalized System of Preferences (GSP). Argentina’s GSP benefits were suspended in 2012, given Argentina’s failure to meet several eligibility criteria. The NAM has been concerned in recent years by a host of challenges in Argentina, from respect for foreign investment to the treatment of imports, which have faced significant challenges in recent years due to licensing and approval requirements that have been the subject of a successful WTO dispute settlement challenge. The NAM remains concerned by Argentina’s new import monitoring system, the Sistema Integral de Monitoreo de Importaciones, which may not be in full compliance with the WTO’s decision or Argentina’s WTO obligations.

NAM urges action on global trade barriers.
In late October, the NAM urged the U.S. government to address trade barriers around the world with a detailed submission to the USTR. In its submission for the USTR’s annual National Trade Estimate (NTE) report, the NAM described a wide variety of trade barriers harming the ability of manufacturers in the United States to grow through exports and sales overseas. These barriers include import and export barriers, investment limitations, forced localization barriers, lack of intellectual property enforcement and discriminatory standards and technical regulations. With the input of NAM members, the submission identified barriers in nearly 50 countries and regions around the world, with Brazil, China, India, Indonesia and Russia among the most challenging markets. The NAM summarized the submission in its blog. For more information on the NAM’s NTE submission, please contact NAM Director of International Business Policy Ryan Ong.

Exports in Action

Webinar: Business Opportunities in Guatemala for U.S. Companies
November 16
The U.S. Commercial Service will host a webinar on business opportunities in Guatemala for U.S. companies. Participants will gain significant market insight by identifying export opportunities and best prospects in Guatemala’s market. For more information, click here.

Webinar: Business Opportunities in Belize for U.S. Companies
November 16
The U.S. Commercial Service will host a webinar on business opportunities in Belize for U.S. companies. Participants will gain significant market insight by identifying export opportunities and best prospects in Belize’s market. For more information, click here.

Port Community Information Technology Systems Exhibition and Technology Challenge
Los Angeles, Calif.
November 18–20
The Commerce Department is partnering with the University of Southern California Marshall Center for Global Supply Chain Management to host an exhibition and technology challenge. The event—phase one of a larger partnership effort to improve 21st-century U.S. supply chain excellence—will bring together supply chain stakeholders, members of port communities, system providers and leading researchers in this field as well as talented teams of technology innovators competing for a $15,000 prize for the supply chain information-sharing technologies. For more information, click here.

Webinar: Business Opportunities in Panama for U.S. Companies
January 11, 2017
The U.S. Commercial Service will host a webinar on business opportunities in Panama for U.S. companies. Participants will gain significant market insight by identifying export opportunities and best prospects in Panama’s market. For more information, click here.

Webinar: Business Opportunities in the Dominican Republic for U.S. Companies
February 1, 2017
The U.S. Commercial Service will host a webinar on business opportunities in the Dominican Republic for U.S. companies. Participants will gain significant market insight by identifying export opportunities and best prospects in the Dominican Republic’s market. For more information, click here.

Information and Communication Technologies (ICT) and Services Trade Mission to Singapore and Vietnam
March 6–10, 2017
Next March, the Commerce Department and International Trade Administration will lead a trade mission for U.S. ICT firms. The mission is designed to increase U.S. engagement in the region’s rapidly expanding ICT sector. The agenda includes customized one-on-one business meetings with prescreened buyers, market briefings, networking events and meetings with industry leaders. For more information, click here. Application deadline: January 8, 2017.

Power Technologies Trade Mission to Saudi Arabia and the United Arab Emirates
March 12–16, 2017
Next March, the Commerce Department and International Trade Administration will lead a trade mission for executives from U.S. companies in the power generation, transmission and distribution equipment industries. The mission will stop in four different cities and include customized one-on-one business meetings with prescreened buyers, market briefings, networking events and meetings with industry leaders. For more information, click here. Application deadline: December 31, 2016.

Trade Mission to Central America in Conjunction with the Trade Americas – Business Opportunities in Central America Conference
March 26–31, 2017
Contact Diego Gattesco or Jessica Gordon for more information. Application deadline: January 31, 2017. 

HANNOVER MESSE 2017: World’s Largest Industrial Technology Trade Fair
Hannover, Germany
April 24–28, 2017
Hannover Messe will host its annual trade show April 24–28, 2017, offering international exposure for U.S. companies, institutions and economic development organizations participating as exhibitors in the U.S. delegation. Hannover Messe is the world’s largest industrial trade show, combined with an investment summit. Industry pavilions are available for digital factory, energy, industrial automation, industrial supply, motion/drive/automation, ComVac and research and technology, connecting exhibitors to potential customers across relevant industry sectors. For more information, click here.

For a listing of other upcoming Commerce Department trade missions, click here.

Questions or Comments?

Contact Chief Economist Chad Moutray at cmoutray@nam.org.

 

Related Tags: