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Renegotiating NAFTA and U.S. Textile Manufacturing [October 30, 2017]
"When the North American Free Trade Agreement (NAFTA) was negotiated more than two decades ago, textiles and apparel were among the industrial sectors most sensitive to the agreement's terms. NAFTA, which was implemented on January 1, 1994, has encouraged the integration of textile and apparel production in the United States, Canada, and Mexico. For example, under NAFTA's 'yarn-forward' rule of origin, textiles and apparel benefit from tarifffree treatment in all three countries if the production of yarn, fabric, and apparel, with some exceptions, is done within North America. The United States maintains a bilateral trade surplus in yarns and fabrics with its NAFTA partners. In 2016, the United States had a $4.1 billion surplus in yarns and fabrics and a positive balance of around $720 million in made-up textile products (such as home textiles and furnishings) with Canada and Mexico. U.S. exports of yarns and fabrics shipped to Mexico and Canada were valued at close to $6 billion last year. In apparel, the United States had a trade surplus with Canada of $1.4 billion and a trade deficit with Mexico of $2.7 billion in 2016."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2017-10-30
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Textile and Apparel Sectors Disagree on Certain Provisions of the Proposed U.S.-Mexico-Canada (USMCA) Agreement [March 5, 2019]
From the Document: "The U.S.-Mexico-Canada Agreement (USMCA) is the proposed replacement of the North American Free Trade Agreement (NAFTA), which entered into force in 1994 and gradually eliminated tariffs and quotas on regionally made textile and apparel products. The proposed agreement would make several changes in rules affecting textiles and apparel among the three countries. U.S. textile manufacturers and the apparel and retail industries have expressed overall support for the USMCA. Still, certain provisions have been controversial, and textile producers and the apparel sector hold divergent views. If Congress considers the USMCA, its textile and apparel provisions may draw particular scrutiny."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2019-03-05
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Effects of Buy America on Transportation Infrastructure and U.S. Manufacturing [Updated July 2, 2019]
From the Introduction: "Congress over the years has passed several domestic content laws that aim to protect American manufacturing and manufacturing jobs. In 1978, Congress began placing domestic content restrictions on federally funded transportation projects that are carried out by nonfederal government agencies such as state and local governments. These restrictions are commonly referred to as the Buy America Act, or more simply, Buy America; they differ from requirements under the Buy American Act of 1933, which governs purchases made directly by the federal government. Although there has been ongoing congressional interest in domestic preference policy over the years, statements and actions by the Trump Administration concerning the need to bolster domestic manufacturing and investment in infrastructure have reinvigorated the issue. Today, Buy America refers to several similar statutes and regulations that apply to federal funds used to support projects in highways, public transportation,aviation, and intercity passenger rail, including Amtrak. Unless a nationwide or project-specific waiver is granted, Buy America requires the use of U.S.-made iron and steel and the domestic production and assembly of other manufactured goods, such as rolling stock used in public transportation."
Library of Congress. Congressional Research Service
Platzer, Michaela D.; Mallett, William J.
2019-07-02
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Solar Energy: Frequently Asked Questions [January 27, 2020]
From the Document: "Use of solar energy for electricity generation is growing in the United States and globally. In the United States, solar energy overall accounted for 2.2% of total electricity generation in 2018, up from 0.7% in 2014. This report addresses a dozen frequently asked questions that may be of interest to lawmakers as the growing use of solar energy potentially affects a variety of areas of congressional interest. The first set of questions looks at different technologies that use solar energy to generate electricity and their costs and prevalence over time. Costs for all components of solar photovoltaic (PV) systems, including cells, modules, inverters, and other related equipment, have generally declined in recent years. Assessing solar energy costs for consumers is challenging because there are many local factors to consider. Another question considers whether using solar energy is a reliable form of electricity generation given its variable nature."
Library of Congress. Congressional Research Service
Cowan, Tadlock; Platzer, Michaela D.; Sherlock, Molly F. . . .
2020-01-27
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Defense Primer: The Berry and Kissell Amendments [Updated January 29, 2020]
From the Document: "Two U.S. laws require the Department of Defense (DOD) and some agencies of the Department of Homeland Security (DHS) to purchase only domestic products for certain military and nonmilitary purposes. These laws are known as the Berry Amendment and the Kissell Amendment. Congress typically debates the Berry Amendment in the context of the annual National Defense Authorization Act. The laws are controversial. Supporters argue they help preserve the U.S. industrial base and create domestic manufacturing jobs. Some lawmakers also assert that production of government uniforms outside the United States raises national security concerns. Opponents believe the laws give monopolies to certain companies and raise the government's procurement costs. They also claim these laws are inconsistent with modern supply chains that source components and raw materials from multiple countries."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2020-01-29
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Buying American: The Berry and Kissell Amendments [Updated February 5, 2020]
From the Document: "Two U.S. laws require the Department of Defense (DOD) and some agencies of the Department of Homeland Security (DHS) to purchase only domestic products for certain military and nonmilitary purposes. These laws are known as the Berry Amendment and the Kissell Amendment. Congress typically debates the Berry Amendment in the context of the annual National Defense Authorization Act. The laws are controversial. Supporters argue they help preserve the U.S. industrial base and create domestic manufacturing jobs. Some lawmakers also assert that production of government uniforms outside the United States raises national security concerns. Opponents believe the laws give monopolies to certain companies and raise the government's procurement costs. They also claim these laws are inconsistent with modern supply chains that source components and raw materials from multiple countries."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2020-02-05
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U.S. Textile Manufacturing and the Trans-Pacific Partnership Negotiations [November 20, 2013]
"The TPP [Trans-Pacific Partnership] has the potential to affect U.S. textile exporters in at least two ways. First, it could enable Asian apparel producers, principally Vietnam, to export clothing to the United States duty-free. This would eliminate much of the advantage now enjoyed by Western Hemisphere apparel producers in the U.S. market and, because Vietnamese manufacturers make little use of U.S.-made textiles, could reduce demand for U.S. textile exports. Second, if the TPP were to allow Western Hemisphere apparel manufacturers to use yarn and fabric made anywhere in the TPP region and still enjoy preferential access to the U.S. market, an enlarged Vietnamese textile industry could, at some future time, compete with U.S. exporters in Mexico and Central America. Textile industry trade groups have urged the United States to insist on a strict 'yarn forward' rule that allows a garment to enter the United States duty-free only if yarn production, fabric production, and cutting and sewing of the finished garment all occur within the TPP region. U.S. negotiators have also proposed that certain textile inputs 'not commercially available' in TPP-member countries could be sourced from outside the region, including China. On the other side, retailers and apparel companies with extensive global supply chains want maximum flexibility for sourcing and are less concerned about whether textiles manufactured in the United States are used; they urge textiles and apparel to be treated like other products in any TPP agreement, and want any apparel cut and sewn within the TPP area regardless of where the fabric originates to be eligible for duty-free entry. Members of Congress have voiced their support for both sides. The TPP seems likely to have less impact on those segments of the U.S. textile industry that do not supply apparel manufacturing. U.S. manufacturers of household and technical textiles appear to be internationally competitive, and it is not evident that lower-wage countries would have comparative advantage in these highly capital-intensive sectors."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2013-11-20
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U.S. Textile Manufacturing and the Trans-Pacific Partnership Negotiations [August 28, 2014]
"Textiles are a contentious and unresolved issue in the ongoing Trans-Pacific Partnership (TPP) negotiations to establish a free-trade zone across the Pacific. Because the negotiating parties include Vietnam, a major apparel producer that now mainly sources yarns and fabrics from China and other Asian nations, the agreement has the potential to shift global trading patterns for textiles and demand for U.S. textile exports. Canada and Mexico, both significant regional textile markets for the United States, and Japan, a major manufacturer of high-end textiles and industrial fabrics, are also participants in the negotiations. U.S. textile manufacturers produce yarn, thread, and fabric for apparel, home furnishings, and various industrial applications. In 2013, the U.S. textile industry generated nearly $57 billion in shipments and directly employed about 230,700 Americans, accounting for approximately 2% of all U.S. factory jobs. More than one-third of U.S. textile production is exported, with the bulk of the exports going to Western Hemisphere nations that are members of the North American Free Trade Agreement (NAFTA), the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), and the Caribbean Basin Initiative (CBI). These free trade agreements provide that certain exports from member countries may enter the U.S. market duty-free only if they are made from textiles produced in the region. This has encouraged manufacturers in Mexico and Central America to use U.S.-made yarns and fabrics in apparel, home furnishings, and other products. Exports to the NAFTA and CAFTA-DR countries contributed to a U.S. trade surplus of $2.4 billion in yarns and fabrics in 2013."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2014-08-28
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Proposed U.S.-South Korea Free Trade Agreement (KORUS FTA): Automobile Rules of Origin [June 15, 2011]
From the Summary: "The U.S.-South Korea Free Trade Agreement (KORUS FTA) was signed on June 30, 2007. The provisions on the automotive sector were among the most difficult areas negotiated, and were among those in which the Obama Administration and South Korean officials reached further agreement on December 3, 2010. The agreement's effect on the automotive sector has drawn particular scrutiny as Congress considers implementation of the KORUS FTA. In particular, the specific rules of origin (ROO) for automobiles and auto parts have become a matter of debate. These rules determine whether the products imported into an FTA participating country are eligible to receive the duty-free or reduced tariff benefits of the agreement. For autos and auto parts, a certain percentage of the parts, labor, and other associated costs must come from the region. This is known as a regional value content (RVC) test. […] Content produced in North Korea is not presently allowed into the United States, a situation that the KORUS FTA would not change. If at some future time the United States were to ease trade restrictions on North Korea, U.S. and South Korean negotiators would then need to discuss the treatment of North Korean inputs to South Korean products under the agreement. The KORUS FTA contains provisions to promote cooperation between the two countries' customs officials. Nonetheless, ensuring that North Korean parts are not used in South Korean products exported to the United States will remain a challenge, whether or not the KORUS FTA takes effect."
Library of Congress. Congressional Research Service
Jones, Vivian Catherine; Platzer, Michaela D.
2011-06-15
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Proposed U.S. - South Korea Free Trade Agreement: Potential National Sector-Specific and State Export Effects [June 20, 2011]
From the Summary: "In February 2011, the United States and South Korea finalized negotiations on a bilateral free trade agreement. As a result, the Obama Administration is expected to submit implementing legislation to the 112th Congress on the proposed U.S.-South Korea Free Trade Agreement (KORUS FTA). This report addresses congressional interest in the effects of this agreement on exports by state to South Korea by using two sets of data. Data developed by the U.S. International Trade Commission (USITC) are used to identify the possible direction of trade change for 40 industries at the national level. These results are paired with lists of each state's top 10 exports which provide a guide to the possible direction of trade for various state industries as a result of tariff elimination and tariff rate quota reductions under the proposed KORUS FTA. Improved access for services, liberalized investment regimes, and elimination of non-tariff barriers for a few goods and agricultural products are not captured in this analysis. […] The discussion in this report is limited to presenting the effects of the KORUS FTA on U.S. exports to South Korea on a national level with possible implications at the state level. It does not present data on U.S. imports from South Korea at the state level because of data issues. Nevertheless, increases in imports in some sectors and in some states could be higher than increases in exports as a consequence of the FTA."
Library of Congress. Congressional Research Service
Jurenas, Remy; Bolle, Mary Jane; Jackson, James K., 1949- . . .
2011-06-20
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U.S. Wind Turbine Manufacturing: Federal Support for an Emerging Industry [December 18, 2012]
"This report discusses the U.S. wind turbine manufacturing industry, its supply chain, employment and international trade trends, major federal policy efforts aimed at supporting the industry, and issues affecting its future. The wind industry's national trade group, the American Wind Energy Association (AWEA), reported an estimated 30,000 Americans were employed directly and indirectly in wind turbine manufacturing in 2011, compared to 2,500 in 2004. Another 45,000 U.S. workers reportedly were employed in other parts of the wind industry in 2011, including construction and services. Wind turbine equipment and component manufacturing jobs range in pay from about $30,000 to around $90,000, according to the Bureau of Labor Statistics. Following an unprecedented period of growth in the U.S. wind power market between 2005 and 2009, about half as many new wind turbines were installed in 2011 (some 3,500) as in 2009."
Library of Congress. Congressional Research Service; Open Source Solutions, Inc.
Platzer, Michaela D.
2012-12-18
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U.S. Wind Turbine Manufacturing: Federal Support for an Emerging Industry [January 16, 2013]
"Increasing U.S. energy supply diversity has been the goal of many Presidents and Congresses. This commitment has been prompted by concerns about national security, the environment, and the U.S. balance of payments. Investments in new energy sources also have been seen as a way to expand domestic manufacturing. For all of these reasons, the federal government has a variety of policies to promote wind power. Expanding the use of wind energy requires installation of wind turbines. These are complex machines composed of some 8,000 components, created from basic industrial materials such as steel, aluminum, concrete, and fiberglass. […] The outlook for wind turbine manufacturing in the United States is more uncertain now than in recent years. For the past two decades, a variety of federal laws and state policies have encouraged both wind energy production and the use of U.S.-made equipment to generate that energy. A continuing challenge for the industry is uncertainty about one main federal policy tool in the deployment of wind power, the production tax credit (PTC), which Congress has extended eight times and let lapse on four occasions. Most recently, the PTC expired at the end of 2012, but a few days later, Congress extended it through year-end 2013. At least a dozen wind turbine manufacturers announced layoffs or hiring freezes at U.S. facilities in 2012, citing concern about the PTC's future as one reason. Other factors affecting the health of the U.S. wind industry are intense price competition from natural gas, an oversupply in wind turbines, and softening demand for renewable electricity."
Library of Congress. Congressional Research Service; Open Source Solutions, Inc.
Platzer, Michaela D.
2013-01-16
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U.S. Solar Photovoltaic Manufacturing: Industry Trends, Global Competition, Federal Support [May 30, 2012]
"Every President since Richard Nixon has sought to increase U.S. energy supply diversity. In
recent years, job creation and the development of a domestic renewable energy manufacturing
base have joined national security and environmental concerns as rationales for promoting the
manufacturing of solar power equipment in the United States. The federal government maintains
a variety of tax credits, loan guarantees, and targeted research and development programs to
encourage the solar manufacturing sector, and state-level mandates that utilities obtain specified
percentages of their electricity from renewable sources have bolstered demand for large solar
projects. The most widely used solar technology involves photovoltaic (PV) solar modules, which draw on semiconducting materials to convert sunlight into electricity. By year-end 2011, the total number of grid-connected PV systems nationwide reached almost 215,000. Domestic demand is met both by imports and by about 100 U.S. manufacturing facilities employing an estimated 25,000 U.S. workers in 2011. Production is clustered in a few states, including California, Oregon, Texas, and Ohio. [...] The competitiveness of solar PV as a source of electric generation in the United States will likely be adversely affected both by the expiration of these tax provisions and by the rapid development of shale gas, which has the potential to lower the cost of gas-fired power generation and reduce the cost-competitiveness of solar power, particularly as an energy source for utilities. In light of these developments, the ability to build a significant U.S. production base for PV equipment is in question."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2012-05-30
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U.S. Solar Photovoltaic Manufacturing: Industry Trends, Global Competition, Federal Support [April 27, 2012]
"Every president since Richard Nixon has sought to increase U.S. energy supply diversity. In recent years, job creation and the development of a domestic renewable energy manufacturing base have joined national security and environmental concerns as rationales for promoting the manufacturing of solar power equipment in the United States. The federal government maintains a variety of tax credits, loan guarantees, and targeted research and development programs to encourage the solar manufacturing sector, and state-level mandates that utilities obtain specified percentages of their electricity from renewable sources have bolstered demand for large solar projects. The most widely used solar technology involves photovoltaic (PV) solar modules, which draw on semiconducting materials to convert sunlight into electricity. By year-end 2011, the total number of grid-connected PV systems nationwide reached almost 215,000. Domestic demand is met both by imports and by about 100 U.S. manufacturing facilities employing an estimated 25,000 U.S. workers in 2011. Production is clustered in a few states, including California, Oregon, Texas, and Ohio. […] The competitiveness of solar PV as a source of electric generation in the United States will likely be adversely affected both by the expiration of these tax provisions and by the rapid development of shale gas, which has the potential to lower the cost of gas-fired power generation and reduce the cost-competitiveness of solar power, particularly as an energy source for utilities. In light of these developments, the ability to build a significant U.S. production base for PV equipment is in question."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2012-04-27
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U.S. Solar Photovoltaic Manufacturing: Industry Trends, Global Competition, Federal Support [June 13, 2012]
"Every President since Richard Nixon has sought to increase U.S. energy supply diversity. In recent years, job creation and the development of a domestic renewable energy manufacturing base have joined national security and environmental concerns as rationales for promoting the manufacturing of solar power equipment in the United States. The federal government maintains a variety of tax credits, loan guarantees, and targeted research and development programs to encourage the solar manufacturing sector, and state-level mandates that utilities obtain specified percentages of their electricity from renewable sources have bolstered demand for large solar projects. […] The competitiveness of solar PV [photovoltaic] as a source of electric generation in the United States will likely be adversely affected both by the expiration of these tax provisions and by the rapid development of shale gas, which has the potential to lower the cost of gas-fired power generation and reduce the cost-competitiveness of solar power, particularly as an energy source for utilities. In light of these developments, the ability to build a significant U.S. production base for PV equipment is in question."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2012-06-13
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U.S.-South Korea Free Trade Agreement (KORUS FTA): Provisions and Implications [March 7, 2013]
"On October 3, 2011, President Obama submitted draft legislation (H.R. 3080/S. 1642) to implement the U.S.-South Korea Free Trade Agreement (KORUS FTA) to both houses of Congress. […] In South Korea, after a contentious battle, the Korean National Assembly passed the agreement on November 22. On March 15, 2012, the KORUS FTA entered into force. The KORUS FTA is the second-largest U.S. FTA (next to NAFTA). South Korea is the seventh largest trading partner of the United States, and the United States is South Korea's third-largest trading partner. […] On December 3, 2010, after a series of arduous negotiations, President Obama and President Lee announced that they had reached an agreement on addressing the outstanding issues related to the KORUS FTA. As a result, U.S. and South Korean negotiators agreed, in the form of an exchange of letters and agreed minutes, to modifications to the commitments made in the 2007 agreement. These modifications included changes in phase-out periods for tariffs on autos and pork, a new safeguard provision on autos, and concessions by South Korea on allowing a larger number of U.S. cars into South Korea under U.S. safety standards than was the case under the original KORUS FTA provisions. […] A broad swath of the U.S. business community supported the KORUS FTA. With the modifications in the commitments reached in December 2010, this group also included the three Detroit-based auto manufacturers and the United Auto Workers (UAW) union. It still faced opposition from some labor unions and other groups, including Public Citizen. Many U.S. supporters view the KORUS FTA as important to secure new opportunities in the South Korean market, while opponents claimed that the KORUS FTA does not go far enough to break down South Korean trade barriers or that the agreement will encourage U.S. companies to move their production offshore at the expense of U.S. workers. Other observers suggested the KORUS FTA could have implications for the U.S.-South Korean alliance as a whole, as well as on U.S. Asia policy and U.S. trade policy."
Library of Congress. Congressional Research Service
Cooper, William H., 1949-; Manyin, Mark E.; Jurenas, Remy . . .
2013-03-07
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U.S. Textile Manufacturing and the Trans-Pacific Partnership Negotiations [October 5, 2012]
"The Trans-Pacific Partnership Agreement (TPP) is a proposed regional free trade agreement (FTA) currently under negotiation among 11 Pacific Rim countries. Initiated under President George W. Bush, the TPP concept has wide bipartisan support. As the negotiations progress, provisions concerning textile trade have become a major point of contention, attracting considerable congressional attention and debate. This report examines the potential implications of a prospective TPP agreement on the U.S. textile manufacturing industry. In 2011, the United States exported nearly $14 billion in yarns and fabrics worldwide. Almost two-thirds of this output was sold to Western Hemisphere nations that are members of the North American Free Trade Agreement (NAFTA) or the Central American-Dominican Republic Free Trade Agreement (CAFTA-DR). Both FTAs provide that certain exports from member countries may enter the U.S. market duty-free only if they are made from textiles produced in the region. This has encouraged manufacturers in Mexico and Central America to use U.S.-made yarns and fabrics in apparel, home furnishings, and other products. Exports to the NAFTA and CAFTA-DR countries contributed to a U.S. trade surplus of $2.5 billion in yarns and fabrics in 2011. The TPP marks the first FTA negotiation for the United States after the complete end of quotas on textile and apparel trade. Duty-free access to the U.S. market under TPP could be of considerable benefit to Asian manufacturers, which now face U.S. import duties on textiles and apparel of up to 32%. Textile industry trade groups have warned that, if approved, the TPP could lead to domestic job loss if it results in apparel producers in the Western Hemisphere, which often use U.S.-made textiles, losing U.S. market share to producers in Vietnam and other TPP countries. Aligned against them are retailers and apparel companies that want to be able to import apparel from the lowest-cost producer, regardless of whether U.S. textiles are used; they urge full inclusion of textiles and apparel in any TPP agreement and favor preferential access for apparel cut and sewn from fabric made in countries not included in the TPP, such as China."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2012-10-05
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U.S.-South Korea Free Trade Agreement (KORUS FTA): Provisions and Implementation [September 16, 2014]
"President Obama signed the legislation implementing the U.S.-South Korea Free Trade Agreement (KORUS FTA) on October 21, 2011 (P.L. 112-41), and the Korean National Assembly passed the agreement on November 22, 2011. The KORUS FTA entered into force on March 15, 2012. With the KORUS FTA now in force for over two years, focus has shifted from the debate over its passage to its implementation, economic impact, and effect on future U.S. FTAs. Some U.S. companies have argued that certain aspects of the KORUS agreement are not being implemented appropriately, citing issues related to rules of origin verification, express delivery shipments, data transfers, and pending auto regulations. In addition, a widening trade deficit with South Korea since the implementation of the agreement has led some observers to argue the agreement has not benefitted the U.S. economy, but it is difficult to distinguish the KORUS FTA's impact on U.S.- South Korea trade patterns from the impact of other economic variables. As the largest of the recently passed U.S. FTA's, perceptions of the KORUS FTA's economic impact and concerns over its implementation may influence congressional debate in the new FTAs now under negotiation, specifically the Trans-Pacific Partnership (TPP), which South Korea has signaled an interest in joining, and the Transatlantic Trade and Investment Partnership (T-TIP) between the United States and the European Union."
Library of Congress. Congressional Research Service
Williams, Brock R.; Manyin, Mark E.; Jurenas, Remy . . .
2014-09-16
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U.S. Solar Photovoltaic Manufacturing: Industry Trends, Global Competition, Federal Support [January 27, 2015]
"Every President since Richard Nixon has sought to increase U.S. energy supply diversity. Job creation and the development of a domestic renewable energy manufacturing base have joined national security and environmental concerns as reasons for promoting the manufacturing of solar power equipment in the United States. The federal government maintains a variety of tax credits and targeted research and development programs to encourage the solar manufacturing sector, and state-level mandates that utilities obtain specified percentages of their electricity from renewable sources have bolstered demand for large solar projects. The most widely used solar technology involves photovoltaic (PV) solar modules, which draw on semiconducting materials to convert sunlight into electricity. By year-end 2013, the total number of grid-connected PV systems nationwide reached more than 445,000. Domestic demand is met both by imports and by about 75 U.S. manufacturing facilities employing upwards of 30,000 U.S. workers in 2014. […] While these duties may help U.S. production become more competitive with imports, the cost of installing solar systems might rise. Domestic demand for solar products may also be depressed by the end of various federal incentives. Unless extended, the commercial Investment Tax Credit for PV systems will revert to 10% from its current 30% rate after 2016, while the 30% credit for residential investments will expire. Looking ahead, the competitiveness of solar PV as a source of electric generation in the United States will likely be adversely affected by the rapid development of shale gas, which has lowered the cost of gas-fired power generation and made it harder for solar to compete as an energy source for utilities. In light of these developments, the ability to sustain a significant U.S. production base for PV equipment is in question."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2015-01-27
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Effects of U.S. Tariff Action on U.S. Aluminum Manufacturing [October 9, 2018]
"Since March 2018, the United States has assessed duties of 10% or more on certain imports of aluminum on national security grounds. The duties are controversial, with some Members of Congress questioning whether the duties will encourage domestic aluminum production and whether they could adversely affect U.S. industries that use aluminum. Acting under Section 232 of the Trade Expansion Act (19 U.S.C.§1862, as amended), which allows the President to levy tariffs and quotas on imports found to threaten or impair U.S. national security, President Trump signed a proclamation that imposed a 10% tariff on foreign-made primary unwrought aluminum and certain semifinished aluminum products effective March 23, 2018. Although aluminum manufactured in certain countries was initially exempted, most exemptions expired on June 1, 2018, thereby extending the tariff to key sources of aluminum imports, including Canada, the leading import source of primary unwrought aluminum in to the United States. Argentina, which agreed to a quota,and Australia are the only two countries that have been permanently exempted. The tariff has no set expiration date; it can be removed at any time. On August 10, 2018, the President announced in a tweet he had authorized an increase of the tariff on aluminum from Turkey to 20%, but he has not yet signed a Section 232 proclamation putting the higher duty into effect. The United States has also imposed sanctions on Rusal, a Russian aluminum company and the world's largest producer outside China."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2018-10-09
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Buying American: The Berry and Kissell Amendments [Updated January 13, 2021]
From the document: "Two U.S. laws require the Department of Defense (DOD) and some agencies of the Department of Homeland Security (DHS) to purchase only domestic products for certain military and nonmilitary purposes. These laws are known as the Berry Amendment and the Kissell Amendment. Congress typically debates the Berry Amendment in the context of the annual National Defense Authorization Act. The laws are controversial. Supporters argue they help preserve the U.S. industrial base and create domestic manufacturing jobs. Some lawmakers also assert that production of government uniforms outside the United States raises national security concerns. Opponents believe the laws give monopolies to certain companies and raise the government's procurement costs. They also claim these laws are inconsistent with modern supply chains that source components and raw materials from multiple countries."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2021-01-13
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Semiconductors: U.S. Industry, Global Competition, and Federal Policy [October 26, 2020]
From the Summary: "Semiconductors, tiny electronic devices based primarily on silicon or germanium, enable nearly all industrial activities, including systems that undergird U.S. technological competitiveness and national security. Many policymakers see U.S. strength in semiconductor technology and fabrication as vital to U.S. economic and national security interests. The U.S. semiconductor industry dominates many parts of the semiconductor supply chain, such as chip design. Semiconductors are also a top U.S. export. Semiconductor design and manufacturing is a global enterprise with materials, design, fabrication, assembly, testing, and packaging operating across national borders. Six U.S.-headquartered or foreign-owned semiconductor companies currently operate 20 fabrication facilities, or fabs, in the United States. In 2019, U.S.-based semiconductor manufacturing directly employed 184,600 workers at an average wage of $166,400."
Library of Congress. Congressional Research Service
Platzer, Michaela D.; Sargent, John F., Jr.; Sutter, Karen M.
2020-10-26
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Effects of Buy America on Transportation Infrastructure and U.S. Manufacturing: Policy Options [June 14, 2017]
From the Introduction: "To evaluate the implications of Buy America on domestic manufacturing, this report analyzes the effects of Buy America on steel and rolling stock manufacturing in the context of industry trends. It also briefly discusses the effects of Buy America on the transportation system. The report begins by explaining Buy America restrictions in more detail; how Buy America comports with international trade agreements that generally forbid procurement restrictions favoring domestic products; and how a relatively new provision enacted by Congress may require imports of materials on federally funded transportation projects to be carried on U.S.-flag ships. The report identifies policy options Congress might consider in light of recent legislative proposals."
Library of Congress. Congressional Research Service
Platzer, Michaela D.; Mallett, William
2017-06-14
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Defense Primer: The Berry and Kissell Amendments [Updated January 13, 2021]
From the Document: "Two U.S. laws require the Department of Defense (DOD) and some agencies of the Department of Homeland Security (DHS) to purchase only domestic products for certain military and nonmilitary purposes. These laws are known as the Berry Amendment and the Kissell Amendment. Congress typically debates the Berry Amendment in the context of the annual National Defense Authorization Act. The laws are controversial. Supporters argue they help preserve the U.S. industrial base and create domestic manufacturing jobs. Some lawmakers also assert that production of government uniforms outside the United States raises national security concerns. Opponents believe the laws give monopolies to certain companies and raise the government's procurement costs. They also claim these laws are inconsistent with modern supply chains that source components and raw materials from multiple countries."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2021-01-13
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U.S. Travel and Tourism: Industry Trends and Policy Issues for Congress [April 2, 2014]
"The U.S. travel and tourism industry accounted for 2.8% of gross domestic product (GDP) in 2011 and directly employed more than 5.7 million people in 2013. Tourism exports reached a record $181 billion in 2013, representing about a quarter of total U.S. services exports. The sector has posted an annual trade surplus with the world for more than two decades. The Department of Commerce forecasts foreign visitor volume in the United States will reach 80 million in 2018. Lawmakers have disagreed on the appropriate federal role in supporting travel and tourism. In 1996, Congress stopped funding the United States Travel and Tourism Administration (USTTA), which for 35 years promoted the United States as a tourist destination. In 2009, it established a public-private entity to promote U.S. tourism, the Corporation for Trade Promotion, which does business as Brand USA. The program is funded by a $10 user fee assessed on international visitors from certain countries and requires annual in-kind and cash matching contributions from the U.S. tourism industry. Brand USA can receive up to $100 million annually in matching federal funds. The Travel Promotion Act of 2009 (TPA; P.L. 111-145), which authorizes federal funds for Brand USA, expires at the end of FY2015."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2014-04-02
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Effects of Buy America on Transportation Infrastructure and U.S. Manufacturing: Policy Options [November 10, 2015]
From the Summary: "With the aim of protecting American manufacturing and manufacturing jobs, Congress over the years has passed several domestic content laws. Buy America refers to several similar statutes and regulations that apply to federal funds used to support projects involving highways, public transportation, aviation, and intercity passenger rail, including Amtrak. Unless a nationwide or project-specific waiver is granted, Buy America requires the use of U.S.-made iron and steel and the domestic production and assembly of other manufactured goods. One of the main manufacturing industries this applies to is the production of rolling stock (rail cars and buses) used in federally funded public transportation and Amtrak's intercity passenger rail service. This report examines the effects of Buy America on these two industries, iron and steel manufacturing and rolling stock manufacturing, in the context of industry trends."
Library of Congress. Congressional Research Service
Platzer, Michaela D.; Mallett, William
2015-11-10
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U.S. Textile Manufacturing and the Proposed Trans-Pacific Partnership Agreement [September 1, 2016]
"Textiles are a sensitive sector in the Trans-Pacific Partnership (TPP), an agreement that would establish a free-trade zone across the Pacific if it is approved by Congress and foreign governments. Because the TPP includes Vietnam, a major apparel producer that now mainly sources yarns and fabrics from China and other Asian nations, the agreement could shift global trading patterns for textiles and demand for U.S. textile exports. Canada and Mexico, both significant regional textile markets for the United States, and Japan, a major manufacturer of high-end textiles and industrial fabrics, are also TPP members. […]The proposed TPP would eliminate some tariffs on textiles and apparel immediately, and phase out others over a decade or more. The agreement has the potential to affect U.S. textile exporters in at least three ways: […] Responding to concerns from domestic textile manufacturers, the proposed TPP agreement includes a "yarn-forward" rule of origin that would allow a garment to enter the United States duty-free only if yarn production, fabric production, and cutting and sewing of the finished garment all occur within the TPP region. However, nearly 190 fibers, yarns, and fabrics in short supply in TPP-member countries could be sourced from outside the region, including China. This provision was a concession to U.S. retailers and apparel brands that wanted maximum flexibility to source yarns and fabrics from non-TPP countries."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2016-09-01
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Athletic Footwear for the Military: The Berry Amendment Controversy [June 10, 2016]
"The Berry Amendment, a 1941 federal law (10 U.S.C. §2533a) requires the Department of Defense (DOD) to purchase only wholly American-made clothing, textiles, and other essential items for the military (see CRS Report RL31236, The Berry Amendment: Requiring Defense Procurement to Come from Domestic Sources). Some in Congress seek to bring athletic footwear for new recruits under the Berry Amendment. Currently, most new recruits receive vouchers to buy running shoes, which need not be domestic in origin. Provisions in the 2017 National Defense Authorization Act (NDAA), of which one version (H.R. 4909) has passed the House and another version (S. 2943) is before the Senate, would require DOD to purchase only athletic footwear made in the United States from domestic materials and components for military recruits. This aspect of the NDAA has run into sharp criticism from some footwear manufacturers, the Pentagon, and the Obama Administration. Some Members of Congress, especially from the few states that still manufacture shoes, such as Maine and Massachusetts, argue that the Berry Amendment's application to athletic shoes would bolster domestic footwear manufacturing and preserve American jobs. Opponents contend that the change in policy would restrict choice; increase costs to U.S. taxpayers; and possibly cause injury to military personnel by limiting their choice of running shoes. The Obama Administration identified the inclusion of the domestic source requirements for footwear as one reason for a potential presidential veto of the 2017 NDAA, stating, 'only one company could benefit disproportionately from such DOD purchasing requirements' and 'mandating a specific article of clothing be provided to new recruits is unprecedented.'"
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2016-06-10
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U.S. Semiconductor Manufacturing: Industry Trends, Global Competition, Federal Policy [June 27, 2016]
"Invented and pioneered in the United States shortly after World War II, semiconductors are the enabling technology of the information age. Because of semiconductors new industries have emerged and existing ones, such as aerospace and automotive, have been transformed. Semiconductors have contributed in powerful and unique ways to nearly all fields of science and engineering, and semiconductors' economic and military importance has made the industry's health a focus of congressional interest for nearly 70 years. In July 2015, Congress formed the Semiconductor Caucus, a group that seeks to advance policies that support the U.S. semiconductor industry. […] An ongoing issue of congressional interest is the retention of high-value semiconductor manufacturing in the United States. In 2015, semiconductor manufacturers directly employed 181,000 workers, who earned an average wage of $138,100, more than twice the average wage for all U.S. manufacturing workers. Increasingly, however, U.S. firms are building semiconductor fabrication plans (fabs) abroad, primarily in Asia. In addition, some semiconductor firms are going 'fab-less,' focusing corporate resources on chip design and relying on contract fabs abroad to manufacture their products. At year-end 2015, there were 94 advanced fabs in operation worldwide, of which 17 were in the United States, 71 in Asia (including 9 in China), and 6 in Europe. […] Semiconductor manufacturing also raises national security concerns, including secure access to trusted suppliers of advanced semiconductors and other critical technology components that are important for certain defense and national security applications. The House Armed Services Subcommittee on Oversight and Investigations held a hearing on this issue in October 2015."
Library of Congress. Congressional Research Service
Platzer, Michaela D.; Sargent, John F.
2016-06-27
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U.S. Aerospace Manufacturing: Industry Overview and Prospects [December 3, 2009]
"Aircraft and automobile manufacturing are considered by many to be the technological backbones of the U.S. manufacturing base. As the Obama Administration and Congress debate how to strengthen American manufacturing, aerospace is likely to receive considerable attention. Like other manufacturing industries, the worldwide recession has affected aerospace manufacturing, with both the defense and commercial sides of the industry facing difficult business conditions for the near and medium term. This report primarily provides a snapshot of the U.S. commercial (non-defense, non-space) aerospace manufacturing industry and a discussion of major trends affecting the future of this industry."
Library of Congress. Congressional Research Service
Platzer, Michaela D.
2009-12-03
