GLOBAL SUPPLY CHAIN INITIATIVE National Security and Emergency Preparedness Department Supply chain, customs, and trade facilitation issues are critically important to the economic competitiveness of the business community. Chokepoints, such as excessive customs mandates, ineffective security mandates, inadequate infrastructure, and burdensome or redundant regulation can have the same detrimental impact on trade as tariffs. The Chamber advocates for increased efficiency and predictability in the global supply chain by promoting customs modernization, eliminating bottlenecks and inequities in the logistics infrastructure, reforming security, and removing redundant or burdensome trade regulations to facilitate the just-in-time production environment. The Facts • M ore than 28% of U.S. GDP is tied to trade, and that number will continue to grow. Accessing international markets without unnecessary trade burdens is critical to American leadership in the global economy. • Transportation and logistics represent 7.7% of U.S. GDP; by comparison, logistics costs represent 16% of China’s GDP and 12% of India’s GDP. This competitive advantage is critical to U.S. economic competitiveness. • Efficient supply chains translate into increased profits. AMR Research concluded that the average total return of companies on the “Supply Chain Top 25” was 17.89% compared with returns of 6.43% for the Dow Jones Industrial Average. • Countries with efficient logistics systems experience an additional 1% in GDP growth and a 2% increase in trade. • 56% of imports are intermediate goods, which makes trade facilitation critical to our manufacturers. Inefficient border procedures can add as much as 15% to a product’s cost. The U.S. Chamber’s Advocacy • T rade Facilitation in the Americas, Europe and Asia The Chamber’s supply chain advocacy literally wraps the globe by working in the Americas, Europe, and Asia. The Chamber’s goal is to activate companies, AmChams, and business associations to encourage governments to make progress on the following issues: I mprove border trade and competitiveness between the North American Free Trade Agreement (NAFTA) trade partners. Advocate for reform to government agencies on both sides of the border to improve trade through the Beyond the Border Initiative between the United States and Canada. Finding the Balance: Shared Border of the Future outlines the Chamber’s vision for the U.S.-Canada border. Advance trade between the United States and Mexico through advocacy with both governments. Steps to a 21st Century U.S.-Mexico Border outlines the Chamber’s vision for the U.S.-Mexico border. Partner with the World Customs Organization (WCO) to promote customs modernization and trade facilitation principles around the globe. Advocate for trade facilitation and rational regulation with the European Commission and other governments around the world. (over) • The Intersection of Trade and Security U.S. Borders and the Facilitation of Legitimate Trade at All Ports of Entry Chamber members are intricately involved with the intersection of issues that impact national security and international trade. C ooperate with the U.S. Department of Homeland Security (DHS), the U.S. Customs and Border Protection (CBP), and the Transportation Security Administration (TSA) to advance members’ interests and provide pressure on major issues impacting trade. Lead trade initiatives through the Chamber’s position on the Commercial Operations Advisory Committee (COAC) to advise the secretary of the U.S. Department of the Treasury and the secretary of DHS on their impact on trade. Advance members’ interests with the administration and on Capitol Hill through the Chamber’s Global Supply Chain Security Working Group. • Regulation and the Global Supply Chain The Chamber plays a leadership role in domestic and international regulation that impacts the global supply chain. Our mission is to mobilize a coalition to respond to regulation wherever action is needed: M obilize businesses, AmChams, associations, governments, and other stakeholders to ensure that both domestic and international regulations reflect business interests. Fight regulations that seek to block free trade, increase non-tariff barriers, or decrease predictability in the supply chain. Form partnerships with the WCO to advance international regulatory harmonization and modernization. • Business Facilitation and U.S. Competitiveness in Free Trade Negotiations The Chamber advances business interests through the Trans-Pacific Partnership (TPP) free trade agreement negotiations by bringing focus to horizontal issues, such as the global supply chain, trade facilitation, and customs issues in the Asia-Pacific. I nitiated in 2009, the TPP is a regional, Asia-Pacific trade initiative, with the goal of shaping a high-standard, broad-based regional free trade agreement. As these trade negotiations move forward, the Chamber will work with the U.S. Trade Representative and foreign governments to address customs, security, express delivery, and other supply chain issues in the agreement, rather than wait to react to an enacted agreement. Legislative Priorities The Chamber is working with lawmakers on a series of supply chain, customs, and trade facilitation legislative priorities for the 112th Congress. In addition, the organization is working with numerous committees in the House and Senate to advance legislation that reflects its members’ interests. Ann Beauchesne | Vice President | 202-463-3100 | abeauchesne@uschamber.com Adam W. Salerno | Director | 202-463-5408 | asalerno@uschamber.com www.uschamber.com/issues/defense/global-supply-chain-transportation-and-customs-issues