By Sanjana Dubey, Office of Public and Media Affairs

This week, Deputy U.S. Trade Representative Miriam Sapiro spoke on the occasion of the one-year anniversary of the entry into force of the U.S.-Colombia Trade Promotion Agreement at a U.S. Chamber of Commerce event entitled “Growth, Jobs, and Opportunity for the United States and Colombia: The U.S.-Colombia Trade Agreement on its First Anniversary.” In the course of her remarks, Ambassador Sapiro addressed the new opportunities stemming from increased market access and the elimination of regulatory barriers under the Agreement.

Ambassador Sapiro highlights the development and opportunities of the U.S.-Colombia Trade Promotion
Agreement on its one-year anniversary. 

Ambassador Sapiro discussed the significant growth of U.S. exports to Colombia across many sectors in the past year. From May 2012 through March 2013, U.S. goods exports to Colombia totaled $15.9 billion, up 20 percent from exports during May 2011 through March 2012. The past year’s manufacturing exports to Colombia include increases of 46 percent in petroleum and coal products, 61 percent in transportation equipment, and 17 percent in computer and electronic products. U.S. Small- and Medium-Sized Enterprises (SME) that export have benefited from the elimination and lowering of trade barriers like burdensome customs procedures, non-transparent regulatory regimes, and other barriers to market access.

Prior to entry into force of the agreement, Ambassador Sapiro said, Colombia was already the second largest purchaser of U.S. agricultural products in South America, but the improved access afforded by the trade agreement has opened the market even further. From May 2012 through March 2013, U.S. exports of agricultural products to Colombia increased by 62 percent, with strong export growth in soybeans, wheat, grapes, pork, and dairy products. She explained that the Agreement provided a vehicle for both countries to engage on key outstanding issues related to the U.S.-Colombia agricultural trade relationship, and has helped resolve longstanding regulatory issues that had impeded greater bilateral trade.

Ambassador Sapiro commended the Colombian Government for making strides in improving the observance of labor rights, protecting workers from violence, and prosecuting perpetrators of violence, but she noted that challenges remain. Sapiro told the audience that the U.S. Government will continue to engage with Colombia in support of the ongoing implementation of its Labor Action Plan commitments, and its labor-related obligations under the trade agreement.

Since the agreement’s entry into force, the Colombian Government has been pursuing sound policies to promote market openness and competitiveness, and has been rewarded with expanded trade. The one-year anniversary of the U.S.-Colombia trade agreement, observed on May 15th, underscores the strengthening of the U.S.-Colombia relationship, and the enormous potential for trade growth between the two countries.

The U.S.-European Union (EU) economic relationship is already successful, Acting U.S. Trade Representative Marantis told a group hosted by the Washington International Trade Association (WITA) this week, and we are optimistic that the proposed Transatlantic Trade and Investment Partnership (TTIP) could provide an additional boost. Ambassador Marantis was on hand to talk about U.S.-EU economic growth as part of WITA’s ongoing TTIP-specific series of events. EU Ambassador to the United States João Vale de Almeida also participated in the panel discussion, which was moderated by former Congressman and German Marshall Fund Fellow Jim Kolbe.

Ambassador Marantis discusses the U.S.-EU economic relationship at the WITA roundtable.

The United States and the EU account for nearly half of global GDP, and 30 percent of global trade. Each day, goods and services worth nearly $3 billion are traded across the Atlantic, and our investment relationship reached nearly $4 trillion in 2011. The U.S. Government estimates that some 13 million jobs in the United States and the EU are supported by transatlantic trade and investment. By both comprehensively addressing the remaining barriers to U.S.-EU trade and pioneering new disciplines on global trade issues of common concern, the TTIP promises to make the transatlantic relationship an even stronger driver of jobs and prosperity on both sides, Ambassador Marantis said.

Ambassador Marantis also touched on the Office of the United States Trade Representative’s (USTR) intensive stakeholder outreach during the run-up to negotiations, which could be launched later this summer. USTR is consulting with Congress, trade stakeholders, and members of the public to shape its negotiating objectives for the proposed agreement, and has received several hundred written public comments via a Federal Register notice. A public hearing on the proposed agreement is scheduled for May 29th and May 30th.

Ambassador Marantis closed his remarks at WITA by expressing optimism about the proposed negotiations, and reiterated USTR’s commitment to a groundbreaking agreement that delivers substantial benefits to workers, farmers, consumers, and businesses.

Today, Deputy Assistant U.S. Trade Representative for Central and South Asia Mara Burr spoke at the Afghan Trusted Network Leadership Roundtable, which focused on positive developments in trade and investment between the United States and Afghanistan. The roundtable, entitled “Building Bridges with the Afghan People: Engagement for Prosperity in the New Afghanistan,” was held as part of the USAID Global Diaspora Forum.

Deputy Assistant U.S. Trade Representative Mara Burr addresses Afghan Trusted Network Leadership
Roundtable on U.S.-Afghanistan trade and investment.

Burr spoke on trade and investment cooperation between the United States and Afghanistan, and on Afghanistan’s work to accede to the World Trade Organization (WTO) by the end of 2014. Membership in the WTO, a significant accomplishment, will bring Afghanistan into full participation in the multilateral trade system as a country that is committed to rules-based international trade. Accession to the WTO would signal to both foreign and domestic investors that Afghanistan has made significant improvements to its legal and regulatory system, and will strive to create a positive environment for trade and investment.

Burr also touched on the progress that the two countries made at the last United States – Afghanistan Trade and Investment Framework Agreement (TIFA) Council meeting held on February 27, 2013 in Washington, D.C. At that meeting, Afghanistan and the United States agreed to pursue a Memorandum of Understanding (MOU) on Joint Efforts to Empower Women Entrepreneurs. Burr told the audience that the Office of the United States Trade Representative (USTR) is hoping to complete that MOU by early June. The U.S.-Afghanistan TIFA was signed in 2004, and has helped to improve government to government and government to business discussions, and has served as an important mechanism for bilateral dialogue on trade and investment. In closing, Burr reiterated the long-term commitment of the United States to the people of Afghanistan to ensure that economic development in the country is sustainable.

By Roya Stephens, Office of Public and Media Affairs

This Weekly Trade Spotlight highlights the exciting work of Colby Kirk and John Hancock, who interned at the Office of the United States Trade Representative (USTR) last summer in the Textiles Office. Kirk and Hancock, who were recently profiled on the “Modern Fellows” blog, used the knowledge they gained at USTR to open “J&C Suiting,” which sells custom suits hand-tailored in Pakistan.

When Georgetown Masters of Science in Foreign Service graduates Colby Kirk and John Hancock first started summer internships at USTR, they didn’t know that their experiences would lead them to start a business, but that’s exactly what they did. Utilizing lessons from their internship in textile quality, customs, trade preference programs, and international trade agreements, Kirk and Hancock launched their home-grown, hand-sewn business.

Colby Kirk and John Hancock return to USTR to discuss their new venture, J&C Suiting. 

Kirk and Hancock came to USTR with no background or prior interest in textiles, but under the direction and mentorship of Assistant U.S. Trade Representative for Textiles and Apparel Gail Strickler, the two threw themselves into the world of textiles, and quickly learned the importance of this industry to many developing countries. Their internship portfolio included identifying quality textiles, understanding trade preference programs, measuring customs duties, and researching the textile industry in countries of interest. Hancock previously lived and worked in Pakistan and was well-versed in the strong Pakistani hand-tailoring tradition, and often brought high-quality, low-cost tailored suits to his friends back in America. As they learned more about textiles trade, Kirk and Hancock began to see how they could use their growing knowledge of textiles to lay the foundation for a wider business endeavor that would support development in Pakistan and enable American customers to purchase low cost, high-quality bespoke suits.

Kirk and Hancock display the inside construction of one of their hand-tailored suit jackets from Pakistan. 

The two young entrepreneurs put their plan into action immediately; after long days at USTR’s Office of Textiles and Apparel, they would work on their business plan, practice taking suit measurements, and begin sourcing tailors with the help of their Pakistani-based friend and business partner Abbas Tariq. While both Kirk and Hancock agree that their lack of a business background left them at a slight disadvantage, Kirk was thankful for his internship experience, saying “the technical knowledge of trade agreements, and also the knowledge of textiles in particular are key to what we do.” They believe that their experience working on textile and apparel issues in trade agreements like the Trans Pacific Partnership (TPP) and preference programs like the African Growth Opportunity Act (AGOA) provided them with vital information and guidance as they sought to develop their business.>

It appears that the stitches for J&C Suiting are falling into place. The two recent graduates have been accepted to Georgetown’s entrepreneurial incubator program and are excited to expand their business. They are exploring ways to increase their client base while maintaining their personal interactions, and hope to move some of their production into Haiti, a country that also has a rich history in tailoring. Haiti benefits from the Haitian Hemispheric Opportunity through Partnership Encouragement Act (HOPE II), which provides preferential treatment for Haitian exports of apparel, textiles, and certain other goods.

The young entreprenuers show the distinctive J&C Suiting label of a completed product. 

Kirk and Hancock have even begun to consult fledgling companies trying to establish businesses in developing countries. Hancock reflected on some of their initial business endeavors, saying “we know how to talk to the Pakistani customs agents when we’re importing Italian fabrics and we have an understanding of value added tax and what that means for a textile”. He admits that while they may not have the most efficient process, they know the right questions to ask and often share their lessons from USTR to help others understand textiles preference programs, value-added tax, apparel duty rates, fabric-sourcing, and customs and duties. The young entrepreneurs also encourage businesses to utilize government support, apply for grants provided by the World Bank and other development agencies to facilitate business in developing countries, and explore the USTR website to learn about countries with preference programs, duty rates, and other elements that are vital to trade with developing countries. To learn more about J&C Suiting, please visit their website here, and for more on USTR’s Office of Textiles and Apparel, click here.