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cherie rusnak

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cherie rusnak

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    1. Cherie Rusnak June 8, 2006

    3. ITA’s Vision and Mission Today ITA’s vision is to foster economic growth and prosperity through global trade. ITA’s mission is to create prosperity by strengthening the competitiveness of U.S. industry, promoting trade and investment, and ensuring fair trade and compliance with trade laws and agreements

    4. ITA’s Size In FY 06, ITA’s budget was almost $400 million, with about 2,300 employees. Relatively speaking, ITA’s budget is small compared to the overall budget for the Department – which was roughly $6.5 billion in FY 06. The Department employs 38,000 staff. NOAA is the largest bureau with about 13,000 staff, followed by Census, and PTO.

    5. ITA and its Component Parts ITA consists of: Market Access and Compliance ( “country desk” officers) Manufacturing and Services ( “industry experts”) Trade Promotion and U.S. and Foreign Commercial Service ( “trade promotion” specialists) Import Administration ( “fair trade” specialists) Chief Financial Officer/Administration ( budget, management and financial specialists) Chief Information Officer (information tech experts)

    6. ITA’s Structure ITA is led by the Under Secretary (U/S), the principal adviser to the DoC Secretary on international trade The Deputy Under Secretary (DUS) is responsible for day-to-day management of ITA and acts for the Under Secretary in his/her absence The four program areas are led by an Assistant Secretary (A/S) The U/S and A/S’s are political appointees, selected by the President/White House Deputy Assistant Secretaries head up units generally divided by region, industry, or issue area. The Office of the Chief Financial Officer and the Chief Information Officer are part of the Under Secretary’s office, which also includes the Offices of Public (OPA) and Legislative Affairs (OLIA), and the Trade Promotion Coordinating Comm.

    7. Program Areas Trade Promotion/ U.S. & Foreign Commercial Service (TP/US&FCS)

    8. US&FCS - PRIMARY FUNCTIONS Trade Promotion/U.S. & Foreign Commercial Service (TP/US&FCS) or (CS) - The promotion of exports of goods and services from the US, particularly by small- and medium-sized businesses, and on the protection of United States business interests abroad. The Commercial Service goal is to increase both the number of US companies that export and the volume and dollar value of those exports.

    9. CS - KEY UNITS USA Trade – houses Trade Information Center (TIC), often the first point of contact to ITA services. Also coordinates outreach, marketing, partnership and diversity efforts. 800-USA-TRADE Office of Domestic Operations (ODO) – manages U.S. network of US Export Assistance Centers (USEAC) offices in 108 cities, often co-located with USG or local trade-related offices. Office of International Operations (OIO) – manages overseas network of 150 offices in 80 countries that are an official section of the US Embassy, referred to as “posts.” Overseas staff are FS. Global Trade Programs (GTP) – manages many “trade events” from HQ such as trade missions and trade fairs that usually involve groups of businesses persons. Advocacy Center – Conduit for US business to receive formal USG assistance with foreign governments, such as letters of support for fair treatment in foreign government procurements.

    10. CS/ODO Domestic Network - USEACs

    11. Foreign Service Commercial Service’s Foreign Service employees are located in 80 countries throughout the world. CS Foreign Service Officers (FSOs) called Commercial Officers (COs or SCOs) tend to serve 2-4 year terms in country before reassignment. This rotational system was implemented to ensure that employees don’t become too attached to a particular country and to expand their expertise. CS also hires “foreign nationals” in each country to help officers do their jobs. These local staff are usually natives of the host country that have historical knowledge, contacts, & expertise in key local industries.

    12. CS - KEY ACTIVITIES Market Entry/Export Counseling Services: Advise companies on exporting fundamentals. Assist them in devising successful export strategies. Market Research: provide current info on foreign market characteristics to gain an understanding of factors that affect success (such as the business and political environment, import regulations, standards/testing requirements, distribution channels, competitors, partners) and opportunities for their products and services in those markets. Contact/Matching Services: help find the best potential foreign business partners for their products/services (e.g., agents, distributors, and joint ventures) and qualify them (i.e., check creditworthiness, time in business, history of complaints, etc.).

    13. CS - KEY ACTIVITIES Trade Events: Provides US companies with opportunities to participate in a range of international sales events, including international expositions (e.g., Paris Air Show); the CS International Buyer Program (which brings thousands of international buyers each year to meet with U.S. companies at major US trade shows); US Pavilions at foreign trade fairs; single-company promotions (product launches, etc.); and international catalog exhibitions (that inexpensively showcases product literature). Trade Missions are also included in this category. Market Access and Advocacy Assistance: Provides U.S. companies and industries with expert market entry assistance and to advocate for U.S. interests in major projects.

    14. Program Areas Manufacturing and Services (MAS)

    15. MAS - PRIMARY FUNCTIONS Manufacturing and Services (MAS) is ITA's industry-based program that focuses on the domestic and international aspects of U.S. industrial competitiveness. MAS: Uses industry sector expertise to counsel US businesses and to work with industry to evaluate the needs of manufacturers. Assesses the economic impact of new and existing government regulations on US manufacturing competitiveness. Represents the interests of U.S. manufacturing and services sectors in USG policy setting and regulatory programs. Helps negotiate and enforce industry sector trade agreements. Also: Issues Grants to “multipliers” and certain industry sectors Compiles Tourism Data of foreign visitors to the US

    16. MAS – KEY ACTIVITIES Providing critical economic information and analysis to promote US business competitiveness – TradeStats, Industry Assessments, etc. Ensuring industry input into domestic policy development, assessment and implementation – Through the Coordinating Committee on Regulatory Affairs, MAS analyzes and addresses economic issues and concerns that affect manufacturers and service providers. Ensuring industry input into trade policy development, negotiations and implementation - MAS analysts ensure that industry’s views are considered in deliberations on economic issues or trade negotiations with foreign countries. USTR relies on MAS evaluation of proposed tariff reductions, elimination of non-tariff barriers, and other international competitiveness issues. In addition, on highly technical issues, MAS staff are often the lead negotiator. MAS provides key information and analysis on various service industries such as education/training, banking, transportation, tourism, venture capital, project financing, etc.

    17. Program Areas Import Administration

    18. IA – Primary Functions IA investigates allegations of unfair trade to help U.S. companies who claim they are being “injured” by imported products that are either: 1) sold at dumped prices; or 2) illegally subsidized by foreign governments. IA Also: Administers Foreign Trade Zone Activities Maintains the Office of Textiles and Apparel Administers Statutory Import Programs Monitors Other Countries' Development and Use of Trade Remedy Statutes

    19. IA - KEY ACTIVITIES Investigations and Reviews – 8 offices and 200+ employees responsible for antidumping and countervailing duty proceedings. 200 dumping and subsidy proceedings initiated since January 2001, administered by teams of analysts with diverse backgrounds in computer programming, law, finance, international business, and accounting. Cases typically last about a year. Negotiating Trade Agreements - Developing negotiating strategies and proposals for the WTO’s Negotiating Group on Rules, which is charged with “clarifying and improving” the WTO Antidumping and Subsidy Agreements.

    20. Program Areas Market Access and Compliance (MAC)

    21. MAC – PRIMARY FUNCTIONS MAC’s primary objectives are to: 1) obtain market access for American firms and workers; and 2) achieve full compliance by foreign nations with trade agreements they sign with our country. Also: MAC houses programs focused on strengthening human and institutional capacity in foreign countries.

    22. MAC – MAIN CUSTOMER U.S. businesses that are already exporting and need help with market access and compliance issues. Through: Initiating and maintaining relationships with various regional and functional trade associations Outreach to the business community and through U.S. Export Assistance Centers Consultations with Industry Trade Advisory Committees (ITACS)

    23. MAC - KEY DEFINITIONS Market Access – ability of a U.S. company or entity to gain commercial access to a country so that business can occur. Trade Barriers – restrictions that governments place on the free exchange (import and export) of goods. Compliance – adherence to the rules governing the flow of trade between nations that have signed a trade agreement. Compliance Officers are in key countries.

    24. MAC - KEY ACTIVITIES Regional Offices – country experts monitor economic and political changes that could affect U.S. exports and investment – particularly barriers to trade. Trade Compliance Center - monitors developments in trade agreements and provides assistance to U.S. companies on compliance problems. Works closely with the desk officers in regional offices to identify and find solutions to barriers faced by U.S. firms

    25. MAC - KEY ACTIVITIES Development Programs – By strengthening “trade capacity,” such as rule of law, anti-corruption efforts and trade ministries, we support international trade by creating a framework that trains foreign officials to understand/enforce various mandates (i.e. legislation) that will ultimately help their countries to compete better globally. AMBIT – Northern Ireland and border countries SABIT – Eurasia Good Governance – Eastern Europe

    26. MAC: Structure Five major operating units: Africa, Middle East and South Asia Europe Western Hemisphere Asia Trade Agreements and Compliance Staffing: - Country Desk Officers in Washington, DC - 4 overseas Compliance Officers (Tokyo, Brussels, China (2)) - TCC Industry and Issues experts

    27. Role of MAC Country Desk Officers Country analysis - Background Economy Relations with U.S. Business Environment U.S. Company Concerns IPR Protection Tariffs Regulatory environment

    28. Republic of Turkey: Background Location: Crossroads between Europe, Asia and Middle East Population: 71 million Demographics: 65% between 15 and 64 years of age Religion: 99% Muslim Formed Customs Union with EU in 1996 Financial and currency crisis in 2001 Given EU Accession Candidate status in October 2005

    29. Republic of Turkey: Economy - Large and growing private sector, State still plays major role - GDP growth of nearly 8% per year since 2002 - Inflation dropped from 80% in 2000 to 7.7% in 2005 - Privatizations worth $16.8 billion in 2005 (Turk Telecom, TUPRAS, Erdimir, Garanti Bank) - FDI inflow in 2005 of $9.6 billion (20% U.S.) - Unemployment 10.6% (2005) - Current Account Deficit over 6% GDP (2005)

    30. Republic of Turkey: Relations with U.S. Long-time NATO ally Tensions over Iraq Bilateral trade grew 14% in 2005 to $9.5 billion U.S. FDI in Turkey doubled to nearly $4 billion (historical basis) in 2005 Trade and investment figures do not reflect potential

    31. Republic of Turkey: Business Environment Overly complicated legal and administrative procedures Judicial system unpredictable and overburdened High and inconsistently collected taxes Large “shadow economy” Weaknesses in corporate governance

    32. Republic of Turkey: Market Access and Compliance Issues Agriculture – high tariffs, quotas Intellectual Property Rights Protection High levels of Piracy – books, optical media Copyright and trademark counterfeiting – apparel, designer brands, film, cosmetics Confidential pharmaceutical test data Public Procurement Procedures Import Licensing Procedures Taxes on luxury goods, other products

    33. Conclusion: International Trade Administration FCS, MAS, IA, MAC Market Access and Compliance (MAC) – Africa, Middle East and South Asia; Europe; Asia; Western Hemisphere; Trade and Agreements Compliance Role of a Country Desk Officer U.S.-Turkey trade and investment

    34. Contact Information International Trade Administration Website: www.trade.gov Cherie Rusnak E-mail: cherie_rusnak@ita.doc.gov Tel: 202.482.5277

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