[PPT] - ADVANCING U.S. EXPORTS OF PLUMBING PRODUCTS Presented by O CTOBER PowerPoint Presentation

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Presented by Salim Bhabhrawala Senior International Trade Specialist Office of Materials Industries U.S. Department of Commerce

ADVANCING U.S. EXPORTS OF PLUMBING PRODUCTS OCTOBER 28, 2015 SAN ANTONIO, TX

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I. Numbers II. NEI Next III. Top Markets Report IV. Free Trade V. MDCP VI. APEC Green Building Taskforce

VII. Water Infrastructure Trade Mission
VIII. ITAC

IX. Trade Enforcement and Fair Trade X. Conclusion

OUTLINE

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Global Demand Drivers for U.S. Building Products Exports

Global Construction Growth Trends
Global construction output growth of 67% between 2010 and 2020; far exceeds global

GDP growth

Much of this growth is in top export markets where U.S. building products compete

well

China expected to hold position of world’s largest construction market through 2020
Trends in Sustainable Construction
Global trend toward green building is intensifying; emphasis on energy efficiency
Governments continue to incent and mandate green building; private sector buy-in has

increased dramatically

Global recognition of need for plumbing standards and codes
Transformation of Energy Mix
As economies work to transition away from established sources of electric power, there

is an imperative to embrace all opportunities to reduce water and energy demand

Global recognition of the demand buildings place on water and energy supplies

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U.S. Building Products Total Annual U.S. Exports

(2013: $88 billion, 2014: $91.8 billion ↑3.9% )

HVAC 2013: $20 billion 2014: $20.5 billion ↑3.9% Insulation 2013: $1.04 billion 2014: $1.06 billion ↑11.2% Appliances, Lighting, Electr. 2013: $23.1billion 2014: $24.9 billion ↑7.7% Concrete, Tile, Plasterboard 2013: $1.03 billion 2014: $1.05 billion ↑1.5% Non-ferrous Metal Products 2013: $14.9 billion 2014: $15.2 billion ↑1.6% Glass 2013: $1.1 billion 2014: $1.05 billion ↓4.7% Iron & Steel 2013: $9.8 billion 2014: $9.9 billion ↑0.84% Doors & Windows 2013: $790 million 2014: $816 million ↑3.3% Paints, Adhesives & Coatings 2013: $4.1 billion 2014: $4.2 billion ↑2.6% Cement & Asphalt 2013: $522 million 2014: $535 million ↑11.7% Wood 2013: $9.2 billion 2014: $9.9 billion ↑7.3% Stone 2013: $224 million 2014: $234 million ↑4.4% Plumbing 2013: $1.5 billion 2014: $1.45 billion ↓1% Industrial Minerals 2013: $2.8 billion 2014: $3 billion ↑7%

[Source: U.S. Census Bureau]

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Trade Deficit - Imports vs. Exports for Plumbing Products

$0 $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000 $3,000,000,000 $3,500,000,000 $4,000,000,000

2012 2013 2014 TTD (Jan-Aug) 2015

Total Exports Total Imports

38% 39% 43% 43%

Trade Deficit

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China Mexico Canada Germany Korea Taiwan Thailand Others

Total Imports of Plumbing Products for 2014

Canada Mexico Saudi Arabia China Others

Total Exports of Plumbing Products for 2014

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NEI Next Strategies

1. Identifying Potential Global Customers – ITA will work with you to

connect you with prospective business partners.

2. Trade Promotion – ITA has trade promotion activities to increase foreign

visibility of your products (trade shows, missions, etc.).

3. Opening New Markets – Completing Major Trade Policy Negotiations:
2009 Trans-Pacific Partnership (TPP).

TPP Members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, & Vietnam.

2013 U.S.-EU Transatlantic Trade and Investment Partnership (T-TIP).
4. Trade Finance - Helping U.S. Exporters Obtain Export Financing.

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I&A Top Markets Series

U.S. Department of Commerce

International Trade Administration

International Trade Administration – Industry & Analysis (I&A)

Top Markets Building Products & Sustainable Construction

HVACR – Lighting – Plumbing Products – Wood – Insulation – Doors & Windows - Glass 2015 Top Markets Reports

Agricultural Equipment
Aircraft Parts
Automotive Parts
Building Products and

Sustainable Construction

Civil Nuclear
Cloud Computing
Cold Supply Chain
Education
Environmental

Technologies

Health IT
Media and Entertainment
Oil and Gas
Recreational

Transportation

Renewable Energy
Semiconductors and

Related Equipment

Smart Grid
Textiles and Apparel
Travel and Tourism

trade.gov/topmarkets

The Top Markets series is a data-driven market assessment tool for U.S. exporters. Each report ranks future export market

pportunities within a particular industry. The reports provide detailed assessments of the competitiveness landscapes

within a sector, as well as opportunities and challenges. Each report includes case studies of top markets.

Contents of the Study

75 export markets ranked by 2017 prospects
Sector group combined
Each sub-sector individually
Core challenges faced by exporters
USG resources
Trade promotion opportunities
Case study-specific analysis
Government policies
Other market drivers
Specific growth areas
Challenges and opportunities
Case study markets
Australia
Canada
China
Gulf Region
Japan
Mexico
United Kingdom

trade.gov/industry/materials

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I&A Top Markets Series

U.S. Department of Commerce

International Trade Administration

International Trade Administration – Industry & Analysis (I&A)

Building Products & Sustainable Construction

Rankings and Key Findings

Top 25 Export Markets (Combined Sector Group, 2017)

1. Canada
2. Mexico
3. China
4. Japan
5. Australia
6. Saudi Arabia
7. Germany
8. Hong Kong
9. Korea
10. United Kingdom
11. Brazil
12. Singapore
13. Venezuela
14. India
15. United Arab Emirates
16. Russia
17. Colombia
18. France
19. Vietnam
20. Chile
21. Taiwan
22. Turkey

23 Belgium

24. Indonesia

25.Thailand

trade.gov/topmarkets

HVACR – Lighting – Plumbing Products – Wood – Insulation – Doors & Windows - Glass

Global recognition of building sector potential in resource conservation leads to

convergence of government and market-based drivers of green building

High density of export destinations; majority of exports to top 5 markets, all subsectors
Challenges:
Tariff sensitivity (thin margins + fierce global competition)
Standards and conformity assessment requirements
Access to market intelligence and trade promotion opportunity info
IPR protection (select situations)
USG engagement
Tariff reduction
Standards and conformity assessment – Guidance and market intelligence
Action to resolve existing trade barriers (WTO TBT Committee)
U.S. firms’ participation in international standards development
Benefits of international standards use generally and the use of existing sector-

specific international standards; building codes create opportunities

Technical and policy information exchanges
Trade promotion – Public-private partnerships highly successful
Standards-related partnerships
Trade promotion – Subsector-specific and ”green” events that enable in-depth presentation
f U.S. product performance attributes and technical requirements

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10

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Background:

U.S.-EU–world’s largest economic and trade relationship.
U.S.-EU–account for 1/3 of the world’s goods & services trade

and nearly 1/2 of global economic output.

U.S.-EU trade–supports an est. 2.4 million American jobs in

manufacturing, agriculture, and goods & services trade.

U.S.-EU–maintain a total of nearly $4 trillion in investment in

each other’s economies, supporting nearly 7 million transatlantic jobs.

Successful U.S.-EU FTA–further opens the EU market, which

will grow U.S. exports of goods & services to the EU. (2014 - $522 billion)

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Key Elements of US-EU TTIP: (1)Tariff Elimination: EU import duties eliminated – recognized as a significant market access barrier. (2)Non-Tariff Barrier Elimination: non-tariff barriers are recognized as major “behind the border” trade barriers, which impede the flow of goods & services trade. (3)Strengthen Rules-based Investment: promote transatlantic business investment and provide investment protections. (4)Reduce/eliminate regulatory and standards differences: promotion of greater compatibility, transparency, and cooperation. (5)Develop trade rules/disciplines: target issues that strengthen the multilateral trading system (e.g., IPR, environment and labor side agreements).

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MDCP: ITA - IAPMO

Water For Indonesia Now (WIN)

Assist Indonesia with developing and

implementing a plumbing code.

IAPMO and the Indonesian standards

body officially launched the fully developed codes at World Plumbing Day in March 2015.

Develop a third-party testing and

certification program/laboratory to ensure the quality of products being used in plumbing systems.

Enforce the codes! (pending)

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Main Goal of Water for Indonesia Now

Protect the health and safety of Indonesian

citizens and its future generation through good plumbing systems

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Asia Pacific Economic Cooperation (APEC) Green Building Forum

ITA-led Project

21 APEC member

economies, 9 ASEAN

Focal areas:

 Green Building Codes  Building Information Modeling

4 expert workshops
Multiple deliverables

 Expert studies and tools

Key Deliverables Include: Best practice study: foundation elements of a successful green building code

Development
Implementation
Enforcement
Evolution

Project: The Role of Standards and Conformity Assessment in Increasing the Performance of the Commercial Building Sector

Supports APEC Leaders shared vision to reduce APEC’s energy intensity by 45% by 2035.

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Water Infrastructure Business Development Mission to SINGAPORE,VIETNAM AND THE PHILIPPINES – JULY 2016

The United States Department of Commerce, International Trade Administration is organizing an Executive-led Water Infrastructure Business Development Mission to Singapore, Vietnam, and the Philippines. These countries are part of the 10 member states comprising the Association of Southeast Asian Nations (ASEAN) which represent a region that received over $78 billion of merchandise exports from the United States in 2014.

Singapore -Water demand is about 1.4 million cu meters daily but domestic

resources only meet about 50% of demand.

Vietnam - A top government priority is wastewater which is currently untreated and

discharged directly to the environment.

Philippines – A growing population of over 100 million with several large

construction projects.

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Trade Mission Features:

Introduce U.S. firms to rapidly expanding water infrastructure markets.
Customized one-on-one meetings and networking events with government

leaders, potential partners, distributors, and end users.

Gain insights, make industry contacts, solidify business strategies and

advance specific technologies.

Advanced Filtration
Biological treatment technology
Drainage pipes & systems
Engineering and construction
Headworks
Membrane filtration
Monitoring equipment
Operations services
Pipes, pumps, and valves
Plumbing and system materials
Water treatment technologies
SCADA Systems
Sewage treatment/management
Testing & Laboratory Equipment
Trenchless technology
UV Disinfection Systems
Waste to energy technology
Water Treatment Chemicals

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The Industry Trade Advisory Committee

A Unique Public-Private Partnership – Industry’s Voice in U.S. Trade Policy

Since 1974, the U.S. Department of Commerce and the U.S. Trade Representative

(USTR) have worked side-by-side with business leaders who serve as industry trade advisors to the U.S. Government.

USTR/Commerce jointly administer the Industry Trade Advisory Committee (ITAC)

system to reflect today’s U.S. economy & vision for the future (www.trade.gov/itac)

Currently, 388 industry representatives serve as advisors to Commerce and USTR

with a diverse representation of private industries ranging from small to large companies and from all U.S. geographic regions.

Commerce and USTR consider the ITACs to be an integral part of the U.S. trade

policy-making process. Advisors have direct access to policymakers and negotiators to

ffer industry positions on U.S. trade policy and negotiating objectives.
Two building materials-related ITACs: 1) ITAC 7 – Forest Products and 2) ITAC 9 –

Non Ferrous Metals and Building Products (PMI a Longstanding Committee Member)

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Antidumping and Countervailing Duty Orders in Effect by Country

As of January 5, 2015

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60 41 36 11 6 28 35 23 17 16 23 38 52 62 168 158 162 155 140 122 106 113 119 124 118 114 115 117

100 110 120 130 140 150 160 170 10 20 30 40 50 60 70

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Fiscal Year Number of Case Analysts Number of AD/CVD Investigations Initiated

* Number of case analysts as of August 31, 2015. Data on the number of new AD/CVD investigations initiated in Fiscal Year 2015, includes actual data through August 31, 2015 (62).

Enforcement & Compliance

Number of AD/CVD Investigations Initiated & Number of Case Analysts by Fiscal Year

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trade.gov/topmarkets go.usa.gov/3u755 www.trade.gov/itac www.export.gov/fta/ftatarifftool

Conclusion

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Thank You

Salim Bhabhrawala Senior International Trade Specialist Office of Materials Industries U.S. Department of Commerce Tel: 202.482.1784 E-mail: Salim.Bhabhrawala@trade.gov