Exporting can be difficult given the distance, language and cultural issues that can be involved. Unfortunately, it can be next to impossible when governments erect trade barriers that make it difficult for foreign products to enter their markets.
In 2015, for example, more than $1.3 trillion in potential U.S. exports were impacted by foreign technical regulatory requirements, according to a report issued by the International Trade Administration (ITA). This impact is particularly felt by small- and medium-sized businesses that probably aren't well-versed or well-equipped to deal with trade barriers or unfair business practices, nor do they have the resources to tackle them.
Fortunately the ITA's Trade Agreements Negotiations and Compliance Office is charged with assisting U.S. companies of all sizes overcome these barriers.
Common Export Trade Barriers
First, let’s take a look at some common trade barriers listed on the export.gov website. They include:
Intellectual property infringement, including copyright, patent and trademarks.
Customs procedures that are not uniformly applied.
Lack of competitive bidding for foreign government tenders.
The application of direct or indirect subsidies by a foreign government in favor of domestic suppliers.
Burdensome certification and testing requirements that are not required for domestic manufacturers.
Influence peddling by a corporate entity or country, which leads to interfering with fair trade practices at your expense.
Bribery, corruption and requests for payoffs by foreign individuals that prevent you from competing fairly on the basis of price, quality or service.
Overcoming Trade Barriers with the ITA
One of the missions of the ITA is to help U.S. companies improve their global competitiveness by advising and advocating for small businesses who want to trade internationally. The ITA reaches directly into more than 100 locations nationwide and 70 markets in the foreign field to help exporters.
Staff at the ITA are resident experts in advocating for U.S. businesses of all sizes, customizing their services to help solve your trade dilemmas as efficiently as possible. If you find yourself caught in an unfair international trade situation, the ITA is a valuable resource that can expeditiously help you understand and solve your problems.
The ITA makes it easy to report a problem, allowing you submit your report online.
Case Study: Klinge Corporation
The ITA has published several case studies that demonstrate how they’ve worked with small businesses to resolve trade barrier issues. Here’s an interesting story about how Pennsylvania exporter Klinge Corp. worked with the ITA to overcome a Chinese technical barrier to trade.
How the ITA Helps
Here’s a look at the process once you report your foreign trade barrier:
Once you’ve reported your international trade barrier, specialists at the ITA mobilize, forming a case team to analyze the problem. They determine which trade agreement can be used as leverage, agree on a strategy, and define a successful outcome for the situation.
Next, your team of experts implements the strategy, engaging the foreign government to reduce or remove the specific trade barrier.
Third, the team works with industry toward an optimal solution, escalating as appropriate to attack and eliminate the foreign trade barrier. If your specific case is not successful with these three steps, it may be referred to the Office of the U.S. Trade Representatives and/or other government agencies for possible formal dispute settlement action.
You can read more about this process in our article, Conquering the Trade Barriers Small Businesses Face When Exporting Globally - Part 2.
Conclusion
Trade barriers can be frustrating, but they don’t have to shutter your company’s international trade goals. Reporting trade barriers leads to resolution, and the ITA is happy to help exporting businesses of all sizes get the support and resolution they need.
( Melissa )27 Jun,2018
