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

ADVANCING U.S. EXPORTS OF PLUMBING PRODUCTS Presented by O CTOBER 28, 2015 Salim Bhabhrawala Senior International Trade Specialist S AN A NTONIO , TX Office of Materials Industries U.S. Department of Commerce

OUTLINE 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

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 •

U.S. Building Products Total Annual U.S. Exports (2013: $88 billion, 2014: $91.8 billion ↑ 3.9% ) HVAC Insulation 2013: $20 billion 2013: $1.04 billion 2014: $20.5 billion ↑ 3.9% 2014: $1.06 billion ↑ 11.2% Appliances, Lighting, Electr. Concrete, Tile, Plasterboard 2013: $23.1billion 2013: $1.03 billion 2014: $24.9 billion ↑ 7.7% 2014: $1.05 billion ↑ 1.5% Non-ferrous Metal Products Glass 2013: $14.9 billion 2013: $1.1 billion 2014: $15.2 billion ↑ 1.6% 2014: $1.05 billion ↓ 4.7% Iron & Steel Doors & Windows 2013: $9.8 billion 2013: $790 million 2014: $9.9 billion ↑ 0.84% 2014: $816 million ↑ 3.3% Paints, Adhesives & Coatings Cement & Asphalt 2013: $4.1 billion 2013: $522 million 2014: $4.2 billion ↑ 2.6% 2014: $535 million ↑ 11.7% Wood Stone 2013: $9.2 billion 2013: $224 million 2014: $9.9 billion ↑ 7.3% 2014: $234 million ↑ 4.4% Plumbing Industrial Minerals 2013: $1.5 billion 2013: $2.8 billion 2014: $1.45 billion ↓ 1% 2014: $3 billion ↑ 7% [Source: U.S. Census Bureau]

Trade Deficit - Imports vs. Exports for Plumbing Products $4,000,000,000 $3,500,000,000 $3,000,000,000 $2,500,000,000 Total Exports $2,000,000,000 Total Imports $1,500,000,000 $1,000,000,000 $500,000,000 38% 39% 43% 43% Trade Deficit $0 2012 2013 2014 TTD (Jan-Aug) 2015

Total Exports of Plumbing Products for 2014 Total Imports of Plumbing Products for 2014 Others Others Canada China Thailand Taiwan Korea Germany China Saudi Arabia Canada Mexico Mexico

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.

U.S. Department of Commerce International Trade Administration I&A Top Markets Series The Top Markets series is a data-driven market assessment tool for U.S. exporters. Each report ranks future export market opportunities 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. 2015 Top Markets Reports Top Markets Building Products & Sustainable Construction  Agricultural Equipment HVACR – Lighting – Plumbing Products – Wood – Insulation – Doors & Windows - Glass  Aircraft Parts  Automotive Parts Contents of the Study  Building Products and  75 export markets ranked by 2017 prospects Sustainable Construction  Sector group combined  Civil Nuclear  Each sub-sector individually  Cloud Computing  Core challenges faced by exporters  Cold Supply Chain  USG resources  Education  Trade promotion opportunities  Environmental  Case study-specific analysis Technologies   Health IT Government policies   Media and Entertainment Other market drivers  Oil and Gas  Specific growth areas  Recreational  Challenges and opportunities Transportation  Case study markets  Renewable Energy  Australia  Semiconductors and  Canada Related Equipment  China  Smart Grid  Gulf Region  Textiles and Apparel  Japan  Travel and Tourism  Mexico trade.gov/industry/materials  United Kingdom trade.gov/topmarkets International Trade Administration – Industry & Analysis (I&A)

U.S. Department of Commerce International Trade Administration I&A Top Markets Series Building Products & Sustainable Construction Rankings and Key Findings Top 25 Export Markets HVACR – Lighting – Plumbing Products – Wood – Insulation – Doors & Windows - Glass (Combined Sector Group, 2017) • Global recognition of building sector potential in resource conservation leads to 1. Canada convergence of government and market-based drivers of green building 2. Mexico 3. China High density of export destinations; majority of exports to top 5 markets, all subsectors • 4. Japan 5. Australia Challenges: • 6. Saudi Arabia • Tariff sensitivity (thin margins + fierce global competition) 7. Germany 8. Hong Kong Standards and conformity assessment requirements • 9. Korea Access to market intelligence and trade promotion opportunity info 10. United Kingdom • 11. Brazil IPR protection (select situations) • 12. Singapore 13. Venezuela • USG engagement 14. India • Tariff reduction 15. United Arab Emirates 16. Russia • Standards and conformity assessment – Guidance and market intelligence 17. Colombia • Action to resolve existing trade barriers (WTO TBT Committee) 18. France 19. Vietnam • U.S. firms’ participation in international standards development 20. Chile 21. Taiwan Benefits of international standards use generally and the use of existing sector- • 22. Turkey specific international standards; building codes create opportunities 23 Belgium 24. Indonesia • Technical and policy information exchanges 25.Thailand • Trade promotion – Public-private partnerships highly successful • Standards-related partnerships trade.gov/topmarkets Trade promotion – Subsector- specific and ”green” events that enable in -depth presentation • of U.S. product performance attributes and technical requirements International Trade Administration – Industry & Analysis (I&A)

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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)

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).

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)

Main Goal of Water for Indonesia Now • Protect the health and safety of Indonesian citizens and its future generation through good plumbing systems