SunTrust Bank - Global Trade Solutions.pptVIP

SunTrust Bank - Global Trade Solutions DID YOU KNOW ? …INTERESTING FACTS AND TRENDS IN THE WORLD OF GLOBAL TRADE Agenda Market Factors Driving Export Demand A World of Change: Trends in Export Growth(in billions of dollars) Trade’s Impact on Small/Medium U.S. Companies China: Challenge or Opportunity? “Over the past 15 years, bilateral trade in goods and services between the U.S. and China has increased by some 1200 percent. Over the past six alone, bilateral goods trade has nearly tripled and services trade has more than doubled.” (USTR) “China’s economy has grown by nearly ten percent a year for the past 20 years…US exports of manufactured goods, agricultural products, and services have grown an average of 23 percent a year since 2001.”(USTR) U.S. factories account for more than 20 percent of the world’s added manufacturing value. By comparison, Chinese plants account for about 8 percent. (Cato Institute) “China is today our fourth largest export market, and the fastest growing export market for the U.S in the world” (USTR) In 2006, the United States exported $55 billion in goods to China. Exports to China grew by 32% from 2005 to 2006, making it the fastest growing major market for U.S. products. (U.S. Chamber) Chinas tariffs on goods of most interest to U.S. exporters have dropped from 25 percent in 1997 to 7 percent, thanks to its entry into the World Trade Organization. As a result, China has become a major market for American-made semiconductors, aircraft, chemicals, plastic materials, and other manufactured goods along with soybeans and cotton. Surging demand in China and other emerging markets is a main reason why American farmers and manufacturers are enjoying record output, sales, and profits. Did You Know ? U.S. exports to China could soon boom even more: China will spend billions in months to come Remake hospitals Communication and power networks Roads and infrastructure Dams and water-treatment facilities Factories, schools and