Industry & Analysis Spotlight

1. Industry & Analysis Spotlight Environmental Technologies Jessica Dulkadir Team Leader Global Environmental Team Maureen Hinman Environmental Technologies Office of Energy & Enviro. Industries Professional Services Rufino Hurtado Professional Services Office of Supply Chain, Prof. and Business Services Barb Rawdon Director Professional Services & Education Team

2. Environmental Technology in a nutshell… Products you use EVERYDAY… Delivered by cutting edge technologies and services…

3. Global Environmental Technology Market Drivers: Regulation, Scarcity, and Climate Change Environmental Laws & Regulation • Resource Scarcity • Climate Change • End-of-Pipe addresses the need to regulate or treat existing pollution. • Pollution Prevention prevents pollution from occurring and encourages or mandates cleaner production methods. • Example: • Mineral /metal scarcity drives demand for waste recovery and recycling technologies. • Climate vulnerability including natural disasters create demand for advanced early detection systems, facility retrofits, and post disaster remediation.

4. The U.S. ET Manufacturing and Services Industry 2011: $215.4 Billion* Manufacturing: Services: Manufacturing (inside circle) $61.5 Services (outside circle) $153.9 Total $215.4 Billion *Utilities and resource recovery, $76.8B, excluded. Data provided by Environmental Business International Inc.

5. The U.S. ET Export Imperative, U.S. Billion Export Potential: $423.1 Billion Non-U.S. Global Market CurrentExports: $45.1Billion U.S. Industry Share of Domestic Market: $239.8 Billion U.S. Imports: $26.9 Billion *DOC analysis based on data provided by Environmental Business International Inc.

6. The Environmental Export Initiative Recognizing the unique challenges and opportunities environmental companies face in the global market, leaders from the Environmental Protection Agency, U.S. Trade Representative, and Departments of Commerce and Agriculture developed a targeted initiative for the environmental industry under the NEI.

7. The Environmental Export Initiative: Pillars and Priorities 1. Targeting the markets of greatest policy and commercial opportunity through collaborative, data driven research and program coordination. 2. Creating a one-stop-shop for environmental businesses. 3. Illustrating the value of the U.S. environmental protection model and industry to the world.

8. Export Market Plans: An Interagency Road Map for Market Development • Brazil • China • India • Indonesia • Saudi Arabia U.S. EPA Best Technology Prospects Analysis

9. Environmental Solutions Exporter Portal: www.export.gov/envirotech Explore the Exporter Resource Guide Connect to a specialist Learn about upcoming events and programs

10. Exporter Resource Guide

11. U.S. Environmental Solutions Toolkit www.new.export.gov/envirotech/toolkit

12. About the Global Environmental Technology Team Team Mission: Serve the client by creating the environment for the Team’s volunteer members to be a valuable resource for clients, networks, offices, foreign posts, internal and external partners, other team members and all units of the ITA Truly Global • 70 ODO Members • 25 HQ and Agency Members • 90+ OIO Members (including partner posts) • Sectors Covered • Water- Wastewater Treatment • Air Pollution Control • Solid Waste and Recycling

13. Global Environmental TeamProven Results – 2012-2013

14. Maureen Hinman; Environmental Technologies Maureen.Hinman@trade.gov; 202-482-0627 Environmental Technologies Team Staff Catherine Vial; Environmental Technologies and Renewable Energy Catherine.Vial@trade.gov; 202-482-2823 Adam O’Malley; Office Director, Office of Energy and Environmental Industries Adam.O’Malley@trade.gov; 202-482-4850 ITA Global Environmental Team: Jessica Dulkadir; Global Environmental Team Leader Jessica.Dulkadir@trade.gov; (216) 522-2026 http://trade.gov/mas/manufacturing/envirotech/index.asp

15. Industry and AnalysisSpotlight on Professional Services January 7, 2014 Prepared by Office of Supply Chain, Professional and Business Services

16. U.S. is the largest services exporter in the world, both in overall commercial services and in most major services categories Source: UNCTAD

17. THE UNITED STATES LEADS THE WORLD IN SERVICES TRADE Source: WTO, International Trade Statistics 2012

18. Business, Professional and Technical Services: • Legal Services • Accounting • Management, Scientific and Technical Consulting • Scientific R&D • Advertising • Architecture/Engineering • (will be the focus of a Spotlight) • Computer and Information Systems • For the purposes of this Spotlight, focus on Legal, Accounting, and Management Consulting services.

19. Business, professional, and technical services exports totaled $153.1 billion in 2012, led by management and consulting services Pie chart dollar values presented in billions of US dollars Source: Bureau of Economic Analysis, U.S. International Services, Table 1

20. U.S. Exports – 2006-2012(In Billions USD)

21. Impact on the U.S. Economy, 2012

22. LEADING TRADING PARTNERS FOR U.S. SERVICES Source: BEA, Survey of Current Business, “International Services,” updated June 14, 2013

23. Exports to Target Markets: (2012, Value in $ Millions) U.S. Business, Professional and Technical Services Legal Services • Source: Bureau of Economic Analysis

24. U.S. PRIVATE SERVICES FOREIGN AFFILIATE SALES AND CROSS BORDER EXPORTS* **Affiliate sales are defined here as sales to foreign persons by non-bank, majority owned foreign affiliates of U.S companies; Source: BEA U.S. International Services, “Table 1: Trade in Services”

25. New Sectors, New Interests • Industrial organization • Unusual structure: Many small firms, but an arena dominated by the larger firms in int’l business • Major international competition from giant UK firms or locally dominant practices • Focus on market access – early stages now • Barriers are: who can practice, how firm can organize • Locally powerful interests in target markets – national bar associations and professional societies • Often national/state/local authorities control • New trade promotion opportunities

26. Opportunities • Continuing globalization and trade • Conclusion of ongoing free trade agreements • Emerging technologies and trade promotion Risks and Issues • Protectionism (largely from established domestic interests) / market access barriers • New competitors in emerging markets • “Behind-the-border” regulations

27. Examples of ITA and Interagency Activities • Trade Agreements: TTIP, TPP, and TiSA • I&A participates in development of policy positions on cross border trade of services negotiations • Ongoing research on relevant U.S.-EU trade issues for use by DOC, USTR and other USG decision-makers • Industry expertise and collaboration with major industry and professional associations, and ITAC 10 • Legal Services Trade Mission to China • Collaboration with Commerce OGC • Commercial Service / Global Markets, and • American Bar Association • Involvement with Association of Management Consulting Firms’ annual Awards Program for Services Provided in Developing Markets • Collaborate with Global Markets on U.S.-Brazil Commercial Dialogue legal services-related issues

28. Rufino Hurtado; Professional Services Rufino.Hurtado@trade.gov; 202-482-2991 Professional Services Team Staff Barb Rawdon; Director, Professional Services & Education Team Barb.Rawdon@trade.gov; 202-482-0474 David Long; Office Director, Office of Supply Chain, Professional & Business Services David.Long@trade.gov; 202-482-0344 http://trade.gov/mas/manufacturing/envirotech/index.asp