Question

3 Mention in what circumstances there would be barriers to export products or services or when they would be wrong to do so.

Answer 1

Exporting can be difficult given the distance, language and cultural issues that can be involved. Unfortunately, it can be next to impossible when governments erect trade barriers that make it difficult for foreign products to enter their markets.Fortunately the ITA's Trade Agreements Negotiations and Compliance Office is charged with assisting U.S. companies of all sizes overcome these barriers.

Common Export Trade Barriers

1. First, let’s take a look at some common trade barriers listed on the export.gov website. They include:

2. Intellectual property infringement, including copyright, patent and trademarks.

3. Customs procedures that are not uniformly applied.

4. Lack of competitive bidding for foreign government tenders.

5. The application of direct or indirect subsidies by a foreign government in favor of domestic suppliers.

6. Burdensome certification and testing requirements that are not required for domestic manufacturers.

7. Influence peddling by a corporate entity or country, which leads to interfering with fair trade practices at your expense.

8. Bribery, corruption and requests for payoffs by foreign individuals that prevent you from competing fairly on the basis of price, quality or service.

Overcoming Trade Barriers with the ITA

One of the missions of the ITA is to help U.S. companies improve their global competitiveness by advising and advocating for small businesses who want to trade internationally. The ITA reaches directly into more than 100 locations nationwide and 70 markets in the foreign field to help exporters.

How the ITA Helps

Here’s a look at the process once you report your foreign trade barrier:

Once you’ve reported your international trade barrier, specialists at the ITA mobilize, forming a case team to analyze the problem. They determine which trade agreement can be used as leverage, agree on a strategy, and define a successful outcome for the situation.

Next, your team of experts implements the strategy, engaging the foreign government to reduce or remove the specific trade barrier.

Third, the team works with industry toward an optimal solution, escalating as appropriate to attack and eliminate the foreign trade barrier. If your specific case is not successful with these three steps, it may be referred to the Office of the U.S. Trade Representatives and/or other government agencies for possible formal dispute settlement action.