The universe of trade is extremely dynamic and it is quickly altering to the extent that it has become to be a ‘Global Village ‘ . It is really clear from what happens in one portion of the universe holding greater effects and impacts on the trade and related minutess in any other portion of the universe. The recent economic crisis that hit about all the industries around the universe has brought greater alterations in both the place and international trade. It was merely ‘interest defaults of US bank clients ‘ from the beginning but it has quickly grown to be the terrible economic convulsion that hit all the companies worldwide so severely. There are many issues related with exports and imports of goods or services with US.
This research paper identifies major issues in international trade, particularly in exporting and importing of goods or services with US. EU states, China and other major states that have long maintained good relation with US in international trade have been confronting a figure of challenges and issues like rational belongings issues, duty and non-tariff related issues etc. This paper presents these major issues in item and analyzes factors that affect the exports and imports with US.
Export and import issues in foreign trade with US
Even though U.S and about all the states maintain export and import relation, U.S and European Union states are the chief trading spouses accounting the largest bilateral export and import relationship in the universe. U.S and E.U economic systems are accounted to be 58 % of the Global GDP. They represent about 37 % of the universe trade accounting to be around EUR 420 billion ( European Commission, 2007, p. 5 ) . As US maintains good dealingss of trade with EU states and China, this research paper considers the illustrations of EU states or China for exemplifying the foreign trade issues of U.S.
Duties related issues
It is by and large argued that about all the states that import goods and services from U.S seem to take advantages of the unfastened U.S market as they put barriers in the manner of U.S exports. A good illustration is Japan. Japan has many trade barriers and increased duties rate that U.S maker and exporters are unable to sell in Japan every bit much as, in bend, Nipponese companies sell in the United States markets ( Cateora and Graham, 2007, p. 27 ) .
One of the major issues that U.S makers who export goods or services to other states face is high rate of duties and other barriers that are imposed by other authoritiess on the importers. France protects their movie and broadcast industry from foreign competition by restricting the figure of American films shows that can look on Gallic telecasting and by restricting the per centum of vocals that can be broadcast on Gallic wireless ( Cateora and Graham, 2007, p. 27 ) . These governmental proceedings of duties or quotas can hold greater impacts on the exporters of U.S and it limits how much U.S companies can sell or supply services abroad. Many of the states increase the monetary values of imported goods from the U.S than they sell in the United States
The U.S is considered to be the leader in free trade and it has been often taking actions against those states as unjust trade spouses. The US authorities is authorized, harmonizing to subdivision 30 of the Omnibus Trade and Competitiveness Act, to look into and revenge against specific trade barriers and besides to enforce 100 % duties on exports to the United States from those states that are proclaimed to be unjust trade spouses ( Cateora and Graham, 2007, p. 38 ) .
Despite the fact that US exporters experiences high duties and protectionism in assorted states, the U.S retains a figure of important responsibilities and duties extremums for some sectors like fabrics, footwear, leather goods, ceramics, glass merchandises etc. EU states exporters have been sing high duties for these sectors and this has been impacting the exporters to U.S ( European Commission, 2007, p. 8 ) . Eckes ( 2009 ) emphasized that protectionism, with high duties, has been considered to be a badge of award as it could shelter emerging domestic industries from good established foreign rivals. The U.S markets of fabrics, dress etc are high import-sensitive-industries and hence protectionism should be viewed as methods to protect domestic manufacturers ( p. 4 ) .
Non-Tariffs related issues
The U.S has long been sing the trouble in footings of international trade, particularly with E.U states is that U.S exporters face major trouble because of deficiency of transparence in the application of relevant Torahs or ordinances that are set by international standardizing organic structures ( Buckley, Lo and Boulle, 2008, p. 148 ) . U.S exporters from EU and other states face regulative barriers because merchandises are required to conform to proficient ordinances sing consumer protection and environmental safety steps.
Eckes ( 2009 ) argued that duties, quotas and imposts ordinances are non broader issues for big concerns, but internal regulative issues like merchandise standardisation, investing policies, rational belongings protection and authorities procurance are the major jobs faced by big concerns ( p. 41 ) . Standardization of certain goods that are to be imported to the U.S has become major challenge for many exporters in other states. For illustration, distribution and selling of certain goods like wins require labeling and electronic goods must conform to the safety demands etc.
Intellectual Property Protection
Export.gov ( 2010 ) identifies rational belongings violation as one of the chief issues that US exporters face in marketing their goods and services abroad. Many of the U.S based companies and exporting makers are non good cognizant of the buccaneering, forging and larceny of their rational belongings like patent and hallmark in the states to which they export the goods or services. The trade name name, merchandises, packaging manner and even concern programs of some American companies are frequently copied by concerns in other states like China. For this ground, it is strongly recommended that concerns must travel for obtaining hallmark and patent protection in their concerned foreign markets so that any abuses of these rational belongingss can be avoided.
The rational belongings protection varies widely from state to state. As rational belongings has become more of import issue international trade, the difference between different rational belongings protections Acts of the Apostless have become beginnings of jobs in international economic relation every bit good. In 1994, the Trade Related Aspects of Intellectual belongings Rights ( TRIPS ) has been negotiated in Uruguay unit of ammunition of GAAT which was administered by the World Trade Organization. TRIPS has brought rigorous regulations sing how states should run into rights for protecting right of first publications, integrated layouts, patents etc. U.S has been following the ACTA ( The Anti-counterfeiting Trade Agreement ) . ACTA have imposed really strong enforcement of rational belongings rights and protection pertaining to the cyberspace activities and information based trading.
Documentation and Customs processs
US trade certification is required for the exporter from other states placing the specific specifics like transportation, purchaser and marketer inside informations and measures etc. there are complicated certification like an importer must obtain an import licence before he can buy goods overseas and these are signifiers of non-tariff trade barriers. Import licence is a government-issued papers to the importer by allowing him to import by stipulating the trade goods with measures, monetary values, specification etc ( Wood, 2002, p. 311 ) .
European Commission ( 2007 ) identified imposts processs as one of the chief issues that EU states face while exporting to U.S. E.U is non being recognized to be a imposts brotherhood in the U.S and the result is that EU certification of beginning is non accepted by U.S imposts ( p. 9 ) .
National security has become a serious issue particularly since the event of 9/11. U.S makers are to seek protection on the evidences of national security. US industries can petition for the imports from 3rd states if there are issues related to national security because national security and protecting it is an involvement of all trade spouses and therefore trade prohibition is applied ( European Commission, 2007, p. 10 ) .
One of the chief US trade barriers is that a figure of clauses in province, federal and local statute law and ordinances give precedence to domestic manufacturers and providers and it therefore discourages foreign bidders every bit good as merchandises and manufacturers. There are federal limitations on the usage of federal money which is known to be ‘Buy America ‘ . There are greater accents on purchasing American merchandises instead than imported goods and this is an issue that states that export goods to US face as a trade barrier ( European Commission, 2007, p. 11 ) .
Boycotts and Embargoes
A boycott is an absolute limitation on buying and importation of certain goods and services from other states. An trade stoppage refers to the complete prohibition on importing certain goods and services from other states. Both boycotts and trade stoppages frequently raise issues to the importers in the US. The United States may implement boycotts and trade stoppages against those states with which it has differences ( Cateora and Graham, 2007, p. 42 ) .
Antidumping jurisprudence has emerged as a non-tariff barrier in international trade. Anti-dumping Torahs were designed to forestall foreign makers from marauding pricing by which makers from other states export goods to US and sell for less than the cost of production in order to be extremely competitory and therefore to rule the market ( Cateora and Graham, 2007, p. 44 ) . But this has been lawfully restricted by anti-dumping Torahs. This jurisprudence has brought issues to many makers in China and other states that practiced marauding pricing.
This piece of research work has focused on assorted issues related to international selling. The major issues that are faced by US exporters and importers are detailed in this paper. Both duty and non-tariffs barriers like regulative issues, rational belongings violation issues etc are detailed in this paper.