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Home » Online Forex Trading Blog » Made In USA Bearing Fruit

Made In USA Bearing Fruit

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US exports have played an unexpectedly strong part in the escape from the worst recession in history. Made in the USA is alive and well in international markets and businesses large and small are reaping big rewards.

From international juggernauts like Boeing and General Electric to Mom & Pop beauty product manufacturers like Dana Point-based Envyderm, recipient of a seven-year $84 million export contract with a Middle East pharmacy chain, export is lifting US manufacturers and rewarding innovative entrepreneurs. The exploits of America’s biggest corporations are well publicized but small businesses that have a tough time competing for retail space in the US are turning to overseas buyers.

International consumers like Made in USA. From music to movies, from jetliners to turbines, from personal cosmetics to prescription drugs and tech, Made in USA carries weight in international markets.

The US Commerce for Economic Affairs recently announced that 2012 exports topped $2.2 trillion, a new high. Since 2009, US exports have raised the bar every year with the 2012 volume ($2.1 trillion) representing an 11% increase over exports in 2009. Expect more of the same in 2014.   

Commerce.gov reported that US exports have contributed 6.1 million new jobs to the economy since 2009. Much of the credit for this resurgence has to go to President Obama’s National Export Initiative. Politics aside, this one is a winner.

During the Obama Administration, the US has forged 20 new trade partnerships. In 2013, trade to these 20 partners was 200 percent higher than trade with the rest of the world. Especially productive has been trade relations with Panama and Colombia.

fta-trade-vs-rest_0

What We Export

In the US, if we build it, we probably export it. US services are also in big demand. In 2013, the US exported $632 billion in services, an increase of $26.4 billion over 2012.  

Manufacturing remains the staple of our export trade. Aerospace and defense, Agribusiness, Industrial equipment, Automotive and ground and so much more contributed to the rising demand. The relative softness of the USD certainly did not hurt.

  • The export of electrical equipment topped $40 billion.
  • Shipments of fabricated metals products surged over $42 billion.
  • Computer and Electronic Product exports reached $130 billion.
  • Transportation equipment topped $175.8 billion.
  • Exports of Chemicals accounted for 18% of US manufacturing exports of $171.2 billion.

Effects of this stellar and aggressive export initiative began to pay dividends in the third quarter 2013 when exports significantly closed the gap in the import-export balance. The US consumer is a formidable force, composing about 67% the country’s GDP. The simple fact is that our labor standards diminish our competitive edge in certain sectors, especially several that the masses tend to enjoy. That’s the way it is.

In other areas, American ingenuity and innovation reigns supreme. This is where our manufacturing base must focus. There is much merit to being first and being the best.

International Trade Data System (ITDS)

Obama used Executive Privilege to pass his International Trade Data System (ITDS), also called the Single Window, mandate. Implementation of this program will make export of goods and services easier, faster and more accommodative.

Currently, there are 100 federal agencies with a hand in international trade. With ITDS, traders will submit standard electronic data for imports and exports into a Single Window. This information will be filtered and distributed to the agencies that have a hand in the particular product.

The relevant agencies will then have an opportunity to review the transaction and approve or reject the transaction. The process will take a few hours. With the current system, this clearance usually takes days.

The system is expected to be operational during 2016. By reducing the government’s footprint on international trade, the American consumer and the American manufacturer both benefit. Win-win is still the best scenario, right?

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About the Author -

Hiland is a professional writer with extensive entrepreneurial experience. He is a graduate of St. George’s School Newport, RI and the State University of New York at Albany where he majored in history. He has been active in the real estate business for 30 years and has founded and sold several businesses. Hiland currently writes for several financial sites and is a published author of the novel The Last Parade. He has recently completed a manuscript for a children’s book entitled Sami and The Minnow Man.

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