U.S. Department of CommerceInternational Trade Admin.

Deputy Assistant Secretary for Manufacturing

Chandra Brown

Let’s Discuss

Exports – why it matters

A profile of U.S. aerospace trade

Commerce Department export programs

ASA-Commerce Department National

Aerospace Foreign Direct Investment Expo

“So tonight, we set a new goal”….increase U.S. exports over the next five years, supporting two million jobs in America.

President ObamaState of the Union

January 27, 2010

Exports

$ billion

Exports

$ billion

CREATING JOBS WITH EXPORT GROWTH

• US exports in 2014: $2.3 trillion – a record.

• Exports: 1/3 of U.S. economic growth

• American jobs supported by exports increased to 11.7 million in 2014.

=Jobs5,000Jobs5,000

Exports$1 billionExports

$1 billion

U.S. Balance of Trade – All Goods$ billions

U.S. Balance of Trade – Aerospace$ billions

Percent of U.S. output exported

Red=Aerospace Blue=Total GDP

Aerospace – a Crown Jewel in U.S. Exports

Highest trade surplus, year after year, of all manufacturing sectors

More jobs created for American workers from exports of aerospace products than from any other industry High tech, high wage jobs: aero prod. workers income 2/3 higher than mfg prod. workers in general

U.S. Aerospace Exports, $ Billions

U.S. Aerospace Exports ($ billions)

Top 10 U.S. Aero Export Markets2009-2014, $ Billions of Exports

China - $57 Germany – $38

France - $50 Brazil - $33

Japan - $42 UAE - $28

Canada - $41 Singapore - $25

UK - $40 Korea - $19

How can the U.S. Department of

Commerce help U.S. aerospace suppliers

increase their exports?

Big Issues

● FAA Form 8130-3

● EASA fees and processing times

● Aircraft parts markets study

● Export Control Reform

An Assessment Tool for FocusingU.S. Government Resources

2015 Top Markets Report

U.S. Department of Commerce International Trade Administration Industry & Analysis (I&A)U.S. Department of Commerce International Trade Administration Industry & Analysis (I&A)

Aircraft Parts

March 2015

13 factors ►Total $ value of U.S. aircraft parts

exported, ave. annual, 2004-13

►% of U.S. aerospace exports that were aircraft parts, ave. annual, 2004-13

►% of total imported aircraft parts that

came from the United States, ave.

annual, 2004-13

►Number of FAA-approved MRO shops

►Do we have a Bilateral Aviation Safety Agreement?

Assigned points

►Total $ value of U.S. aircraft parts 14exported, ave. annual, 2004-13

►% of U.S. aerospace exports that were 6aircraft parts, ave. annual, 2004-13

►% of total imported aircraft parts that 12

came from the United States, ave.

annual, 2004-13

►Number of FAA-approved MRO shops 10

►Do we have a BASA? 4

Country score examples

• France 60.4744

• Korea 38.3265

• Turkey 31.0837

• Ghana 27.3703

• Oman 24.5498

• Tunisia 23.2329

• Tonga 22.6814

TOP 15 MARKETS U.S. AIRCRAFT PARTS EXPORTS

1 France 6 Japan 11 Netherlands

2 Singapore 7 China 12 S. Korea

3 U.K. 8 Australia 13 Brazil

4 Canada 9 Qatar 14 Mexico

5 Germany 10 Norway 15 India

TOP 15 MARKETS U.S. AIRCRAFT PARTS EXPORTS

1 France 6 Japan 11 Netherlands

2 Singapore 7 China 12 S. Korea

3 U.K. 8 Australia 13 Brazil

4 Canada 9 Qatar 14 Mexico

5 Germany 10 Norway 15 India

Five Country Case Studies

Canada

China

Germany

Saudi Arabia

Singapore

Export Control Reform

• “See through” rule affects civil aircraft

• Reform helps provides greater specificity about what is “military” and what is “dual-use”

• Aerospace benefits the most from Strategic Trade Authorization (STA) after reform

Everyday Issues

● Can I export to Russia? - yes

● Do I need to pay $5,000 VAT on parts exported to Denmark? - no

● Can I sell PMA parts to Columbian military? – yes

● How can I get my U.S. customer to sign ITAR pledge? – not needed

● Should I pay $2,250 ITAR reg. fee? – not for the engine you overhauled

Advocacy

• U.S. Government support for specific sale to specific customer; may involve cabinet secretaries

• Customer must be gov’t-owned or controlled

• Counters foreign gov’t support for U.S. competitors

Commerce Department at Air Shows

● Aero India – Feb. ● Avalon (Australia) – Feb. ● MRO Middle East (UAE) – Feb● IDEX (UAE) – Feb.● World ATM Congress (Madrid) – March● LAAD (Brazil) – April● Paris Airshow – June● Dubai – Nov. 

Commerce Department Aerospace Web Sites

Commercial Service- Market research

- Aerospace trade leads

- Aerospace trade events

http://export.gov/industry/aerospace/index.asp

Industry & Analysis / Aerospace Team- Aerospace trade data

- Aerospace industry analyses/global perspective

http://www.trade.gov/td/otm/aero.asp

Market Development Cooperator Program (MDCP) Overview

● Financial and technical assistance from International Trade Administration (ITA) to boost U.S. exports

● Partnership between ITA and non-profit industry group

● 2-to-1 match, $300,000 maximum award

● $327 in exports for every $1 of MDCP

● 136 awards to 106 organizations since 1993

Ohio Aerospace Institute MDCP Award

● September 2012- September 2015

● $165K from Commerce, $470K from OAI

● Goal: increase exports by $90M

● Target markets: Canada, Europe, Brazil

MARPA MDCP Award

● September 2014- October 2017

● $300K from Commerce, $900K from MARPA

● Goal: Use of PMA parts globally to increase from $567M to $912M……+$345M

● Target markets: China, Southeast Asia, Japan,Germany, UK, France, UAE

Washington State MDCP Award

● September 2014- September 2017

● $300K from Commerce, $618 from Wash.

● Goal: increase exports by $50M

● Target markets: Brazil, Canada, China, France, Germany, India, and UK 

THANK YOU!Chandra Brown

Deputy Assistant Secretary for Manufacturing

U.S. Department of Commerce

Chandra.Brown@trade.gov

TEL: (202)-482-1872