US India Trade and Trans Pacific Partnership. Paul Frost Commercial Officer US Embassy, New Delhi

Transcription

1 US India Trade and Trans Pacific Partnership Paul Frost Commercial Officer US Embassy, New Delhi

2 The U.S. Commercial Service in India BAFT Trade Finance Conference Mumbai July 29, 2016 Paul Frost Commercial Attaché U.S. Embassy New Delhi Tel:

3 The U.S. Commercial Service (CS) in India U.S. Commercial Service has 7 offices throughout India. U.S. Commercial Service also works in tandem with local business associations at 15 American Business Corners. Ahmedabad Mumba i New Delhi Sura t Jaipur Indore Pune Chandigarh Hyderaba d Patna Vizag Kolkata Bhubaneswar Guwahati In DC, Commercial Service has a team of trade professionals who cover India in the Office of South Asia Mangalore Kochi Trivandrum Bangalor e Coimbatore Salem Madurai Chennai

4 The U.S. Commercial Service in India Commercial Service (CS) India offers the following fee-based services to U.S firms: Gold Key Service (GKS) International Partner Search (IPS) Business Facilitation Service (BFS) Our key matchmaking service of four to six pre-screened appointments per day in one city with potential business partners or distributors. A market survey to screen potential firms to represent a U.S. company. A customized service designed to attract new business and establish key contacts in the market, with a lighter touch. International Company profile (ICP) Due diligence on proposed partners or distributors via an in-depth, office visit and interview of owners and managers. The information is verified by banks and business references. Single Company Promotion (SCP) Market Research (MR) CS India organizes a promotional event to help U.S. companies raise their profile, launch a product or inaugurate an office. A sector specific market research (MR) report to facilitate business entry and expansion in India.

5 CS India Programs to Support U.S.-India Trade CS India supports and participates in many international trade programs: Certified Trade Fairs (CTF) CS India certifies proven local trade exhibitions to provide a platform to showcase U.S. exports in a local buyer community Ex: Aero India, Defense Expo, Renewable Energy Expo India Trade Missions (TM) International Buyer Program (IBP) CS India recruits U.S. companies in a single or multi-stop Mission, often with participation of state government or industry associations Ex: Smart Cities Infrastructure Trade Mission to India (Feb 2016); U.S. Education Trade Mission (Nov 2016) Indian buyers can join delegations to major trade exhibitions in the U.S. includes matchmaking appointments WasteExpo 2015 (Las Vegas), 2016 Offshore Technology Conference (Energy - Oil and Gas), 2016 International Franchise Expo (Franchising)

6 International Buyer Program The IBP: Big trade shows in the U.S. that bring buyers and sellers together. Natural Products Expo West/Engredea 2016 (Healthcare/Consumer Goods) March 10-13, 2016 Anaheim, CA expowest.com The 2016 NAB Show (ICT Broadcasting) April 18-21, 2016 Las Vegas, NV nabshow.com Offshore Technology Conference (Energy - Oil and Gas) May 2-5, 2016 Houston, TX otcnet.org sanjay.arya@trade.gov shantanu.sarkar@trade.gov National Restaurant Association, Restaurant, Hotel-Motel Show (NRA Show) (Agribusiness/Hospitality) May 21-24, 2016 Chicago, IL show.restaurant.org noella.monteiro@trade.gov lakshmi.davey@trade.gov WasteExpo 2016 (Environmental Technologies) June 7-9, 2016 Las Vegas, NV wasteexpo.com arup.mitra@trade.gov malarvizhi.parimel@trade.gov InfoComm International 2016 (ICT) June 8-10, 2016 Las Vegas, NV infocommshow.org mala.venkat@trade.gov 2016 International Franchise Expo (Franchising) June 16-18, 2016 New York, NY ifeinfo.com srinivasa.murthy@trade.gov Fancy Food Show (Summer) 2016 (Processed Foods) June 26-28, 2016 New York, NY specialtyfood.com noella.monteiro@trade.gov lakshmi.davey@trade.gov 2016 Annual Meeting and Clinical Laboratory Exposition of the American Association for Clinical Chemistry (Health and Medical) July 24-28, 2016 Philadelphia, PA aacc.org malarvizhi.parimel@trade.gov sathya.prabha@trade.gov Outdoor Retailer Summer Market (Textiles and Apparel/Sporting goods) August 3-6, 2016 Salt Lake City, UT outdoorretailer.com uma.katoch@trade.gov rajaneesh.balu@trade.gov Farm Progress Show (Agricultural Equipment and More) August 31 September 1, 2016 Boone, IA farmprogressshow.com WEFTEC 2016: Water Environment Federation Technical Exhibition and Conference (Environmental Technologies) September 24-28, 2016 New Orleans, LA weftec.org arup.mitra@trade.gov MINExpo International 2016 September 26-28, 2016 Las Vegas, NV minexpo.com shantanu.sarkar@trade.gov Greater New York Dental Meeting (Health and Medical) November 25 30, 2016 New York, NY gnydm.com ruma.chatterjee@trade.gov

7 What is SelectUSA? SelectUSA s mission is to promote and facilitate business investment in the United States. We are the single point of contact at the national level for international and domestic companies to invest in the US. SelectUSA Locations: U.S. Department of Commerce headquarters in Washington, D.C. All seven Commercial Service locations in India, and worldwide

8 Key SelectUSA Services Information and Counseling We help you find the information that you need, including high-quality data, details on federal resources, and information on national rules and regulations. Introductions - From state and local governments to federal officials, SelectUSA makes introductions to the contacts who can answer your questions. Ombudsman Assistance We assist companies to resolve issues involving federal regulations or programs related to existing and potential projects. SelectUSA.gov

9 2016 SelectUSA Investment Summit June in Washington, D.C. India sent a delegation of nearly 80 business leaders 2,600 participants from more than 70 International Markets Sessions featured President Barack Obama, six Cabinet Secretaries, and many other business and government leaders Roughly 500 Economic Development Organizations from throughout the United States

10 Overview: TPP Region THE TRANS-PA CIFIC PA RTNERSHIP A fast-growing region, home to 40% of global GDP and 800 million consumers Population: By 2030, middle class population in the Asia- Pacific is expected to be 10x the size of the United States Projected GDP Growth ( ) Australia 4.1 % Brunei Darussalam 10.4 % Canada 4.5 % Chile 4.0 % Japan 2.9 % Malaysia 11.7 % Mexico 5.2 % New Zealand 2.7 % Peru 5.5 % Singapore 6.1 % United States 4.4 % Vietnam 7.6 % Source: International Monetary Fund, October 2015, Compound Annual Growth Rate figures, current prices (valued in U.S. dollars) 10

11 TPP: New market access Australia Brunei Canada Chile Japan Malaysia Mexico Peru New Zealand Singapore United States Vietnam Countries listed in orange are new trade agreement partners to the United States under TPP. U.S. businesses exporting to the other 6 countries still will have the option of using previous agreements. 98% of industrial and consumer goods exports to the 5 new trade agreement partner countries will be duty-free immediately when the TPP enters into force 11

12 TPP: Important to U.S. Jobs * Services export data are not available for Chile, Peru, Brunei, Malaysia, New Zealand, and Vietnam. Therefore, U.S. jobs supported by services exports to the TPP as a whole cannot be accurately calculated. 12

13 TPP: Important to U.S. Exports 177,000 U.S. Companies Exported Goods to TPP Countries in 2012 *2014 services data is unavailable for Brunei, Chile, Malaysia, New Zealand, Peru, and Vietnam. 13

14 TPP: Important to Inbound Investment Investment in the U.S. from companies based in TPP countries supports American jobs *FDI position measured by UBO, a preferred indicator of ultimate ownership. Source: Bureau of Economic Analysis Direct Investment and Multinational Enterprises Data updated July 31,

15 Services Opportunities in the TPP Region TPP strengthens the United States standing as the world s #1 services exporter The United States ran a services trade surplus of $233.1B in 2014 U.S. service exports to TPP countries in 2013 were $178B* The TPP region, excluding the U.S., imported $597B in services in 2012 huge market potential for U.S. firms *Data not available for Brunei, Peru or Vietnam 15

16 TPP Benefits for Insurance Industry Services Chapter Commitments Help level the playing field for insurers competing against state-owned enterprises, and provide investment protections Limit the preferences that post offices receive when they sell insurance products, which have limited U.S. insurers growth due to unfair competition Ensures that regulations do not discriminate against U.S. services suppliers U.S. companies will be treated the same as similar domestic suppliers in that country 16

17 TPP Benefits for Insurance Industry New Market Access For Services Providers Japan is the second largest insurance market in the world; its market is of great importance to U.S. insurance companies. However, U.S. insurance company s growth has been limited by unfair competition and regulations in Japan. Overall TPP commitments, in addition to the bilateral Japan Post specific commitments, will help provide a level playing field for U.S. insurance companies Vietnam s state-owned insurance companies make up more than 75% of the non-life insurance market and the Ministry of Finance plays an active role as the parent of these companies. The state owned enterprises commitments in TPP will help level the playing field for U.S. insurance companies TPP guarantees equal treatment to services provided in different ways, whether it is through physical investment or over the Internet (subject to public-interest regulation) 17

18 TPP Benefits for Service Providers New Market Access For Services Providers National Treatment: The parties commit to providing national treatment to investors of another party and provides that TPP parties cannot discriminate against services providers in favor of domestic providers Cross Border Trade: The Agreement includes a commitment that each party permit the sale of financial services across borders from suppliers located in the U.S. or other TPP Parties Portfolio Management: Portfolio managers located outside a territory can provide advice to an asset manager located in its territory Senior Management or Boards of Directors: TPP parties will not impose nationality requirements on a company s senior management or impose nationality or residency requirements on more than a minority of board members of a financial institution 18

19 TPP Benefits for Service Providers Other TPP Highlights TPP will restrict TPP Partners from instituting market access barriers, such as limits on the numbers of U.S. insurance companies that can operate in their markets or the total value of insurance transactions from U.S. insurance companies The Agreement will include recognition from TPP Partners of the importance of expediting the availability of new insurance products and commitments to expedite approvals of certain types of insurance in a prudentially-sound manner With limited exceptions, a U.S. company will not be required to incorporate or make any form of local investment in order to supply services in a TPP member country 19

20 Services Digital Economy Opportunities in the TPP Region The TPP region is home to about 600 million Internet users, or 1 in 5 of global Internet users U.S. digitally-enabled service exports were $400B in 2011 (latest available), up from $273B in 2007 The TPP region includes countries with some of the world s fastest-growing rates of telecom use In 2014, the telecommunications and e- commerce sectors employed 2.5 million people in the United States and contributed $808 billion to U.S. GDP Market Opportunity Spotlight: Japan Japan s E-Commerce market is over $60 billion and is its fastest growing sector, with growth of around 8% per year. In 2013, the Japanese public cloud computing market size reached about $1.4 billion, a 39.4% increase from the previous year according to IDC Japan, an American market research firm. IDC predicts that the size of the Japanese public cloud computing market will more than triple by U.S. firms are highly competitive in this sector, and TPP will provide additional opportunities in the Japanese market. Access and Benefits Under TPP TPP addresses barriers to data flowing across borders and concerns over requirements that data be stored locally. TPP makes commitments to address these issues for the first time in a trade agreement, guaranteeing that key inputs to digital trade are not arbitrarily impeded by governments TPP prohibits the imposition of customs duties on digital products and prevents countries from favoring national producers or suppliers. In addition, countries cannot require companies to submit source code in order to have access to their market. TPP encourages paperless trading such as electronic customs forms and the use of e-signatures TPP includes commitments to adopt and maintain consumer privacy and protection laws related to fraudulent and deceptive commercial activities online TPP supports strong telecom networks across the region by addressing barriers to market entry and policy challenges. These include prohibitions on investment, or constraints on access to key resources such as spectrum, numbers, or rights of ways; or anti-competitive conduct pursued by incumbent players, who can use control over key bottlenecks such as interconnection, roaming arrangements, and access to specific facilities to disadvantage competitors. 20

21 Watch here for more TPP Resources Industry fact sheets on benefits of TPP (Commerce and USDA): and State fact sheets on benefits of TPP (Commerce): TPP agreement, FAQs and issue-specific fact sheets (USTR): and go.wh.gov/tpptext 21

22 Thank you, and keep in touch Paul Frost Commercial Attaché U.S. Embassy New Delhi Tel: Geoff Parish Commercial Attaché U.S. Consulate Mumbai Tel: Jigna Mehta Commercial Specialist U.S. Consulate Mumbai Tel: