U.S. Secretary of Commerce Gina Raimondo will travel to Beijing and Shanghai, the People’s Republic of China (PRC), from August 27-30 for meetings with senior PRC officials and U.S. business leaders. Secretary Raimondo’s travel follows President Biden’s meeting with President Xi last November to deepen communication between the U.S. and the PRC on a range of issues. While in the PRC, Secretary Raimondo looks forward to constructive discussions on issues relating to the U.S.-China commercial relationship, challenges faced by U.S. businesses, and areas for potential cooperation.
News
U.S. Department of Commerce Secretary Gina Raimondo Releases 2023 National Export Strategy
Today, Secretary of Commerce Gina Raimondo released the 2023 National Export Strategy(NES). This report to Congress establishes U.S. trade promotion priorities and a coordinated, whole-of-government framework to better equip American companies and workers to compete in global markets and grow through international trade. The NES highlights government programs and resources to assist U.S. businesses – including small and medium enterprises (SMEs), historically underrepresented businesses, and those new to exporting – to overcome barriers to trade and sell their goods and services globally.
“The Biden-Harris Administration’s generational investments in U.S. industry, innovation, workforce training, and place-based economic development are setting the stage for inclusive economic growth and boosting U.S. competitiveness on the global stage,” said Secretary Raimondo. “We are releasing the 2023 National Export Strategy amidst these historic investments, which outlines how we align the full force of the federal government to help U.S. businesses and workers compete and win in international markets—including small businesses exporting for the first time.”
The 2023 NES was released during the Biden-Harris Administration’s inaugural meeting of the President’s Export Council (PEC), a body that serves as the principal national advisory committee on international trade. The PEC is comprised of more than two dozen leaders from the private sector, labor, and academia who provide recommendations to the President on policies and programs that affect U.S. trade performance.
The 2023 NES contains export promotion actions and activities to increase and enhance market opportunities in several sectors, including:
1. Climate and clean technologies
2. Manufacturing
3. Travel and tourism
4. International education
5. Global infrastructure development
6. Agriculture, fish and forestry
7. Seafood industries
The 2023 NES was developed by the Trade Promotion Coordination Committee (TPCC), an interagency body established to provide a unifying framework to coordinate the export promotion and export financing activities of the U.S. government. The TPCC Secretariat is housed within the U.S. Department of Commerce’s International Trade Administration.
Federal Reserve Board releases results of annual bank stress test, which demonstrates that large banks are well positioned to weather a severe recession
WASHINGTON D.C., June 28 – The Federal Reserve Board on Wednesday released the results of its annual bank stress test, which demonstrates that large banks are well positioned to weather a severe recession and continue to lend to households and businesses even during a severe recession.
“Today’s results confirm that the banking system remains strong and resilient,” Vice Chair for Supervision Michael S. Barr said. “At the same time, this stress test is only one way to measure that strength. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses.”
The Board’s stress test is one tool to help ensure that large banks can support the economy during economic downturns. The test evaluates the resilience of large banks by estimating their capital levels, losses, revenue and expenses under a single hypothetical recession and financial market shock, using banks’ data as of the end of last year.
All 23 banks tested remained above their minimum capital requirements during the hypothetical recession, despite total projected losses of $541 billion. Under stress, the aggregate common equity risk-based capital ratio—which provides a cushion against losses—is projected to decline by 2.3 percentage points to a minimum of 10.1 percent.
This year’s stress test includes a severe global recession with a 40 percent decline in commercial real estate prices, a substantial increase in office vacancies, and a 38 percent decline in house prices. The unemployment rate rises by 6.4 percentage points to a peak of 10 percent and economic output declines commensurately.
The test’s focus on commercial real estate shows that while large banks would experience heavy losses in the hypothetical scenario, they would still be able to continue lending. The banks in this year’s test hold roughly 20 percent of the office and downtown commercial real estate loans held by banks. The large projected decline in commercial real estate prices, combined with the substantial increase in office vacancies, contributes to projected loss rates on office properties that are roughly triple the levels reached during the 2008 financial crisis.
The $541 billion in total projected losses includes over $100 billion in losses from commercial real estate and residential mortgages, and $120 billion in credit card losses, both higher than the losses projected in last year’s test. The aggregate 2.3 percentage point decline in capital is slightly less than the 2.7 percentage point decline from last year’s test but is comparable to declines projected from the stress test in recent years. The disclosure document includes additional information about losses, including firm-specific results and figures.
For the first time, the Board conducted an exploratory market shock on the trading books of the largest banks, testing them against greater inflationary pressures and rising interest rates. This exploratory market shock will not contribute to banks’ capital requirements but was used to further understand the risks with their trading activities and to assess the potential for testing banks against multiple scenarios in the future. The results showed that the largest banks’ trading books were resilient to the rising rate environment tested.
The individual results from the stress test factor directly into a bank’s capital requirements, mandating each bank to hold enough capital to survive a severe recession and financial market shock. If a bank does not stay above its capital requirements, it is subject to automatic restrictions on capital distributions and discretionary bonus payments.
U.S.-UK Joint Statement on the U.S-UK Data Bridge
Washington D.C., June 9 – U.S. Secretary of Commerce Gina Raimondo and UK Secretary of State for Science, Innovation, and Technology the Rt Hon Chloe Smith MP issued a joint statement yesterday on the announcement that both countries have committed in principle to establish a data bridge.
“Today, President Joseph R. Biden and Prime Minister Rishi Sunak announced that they have committed in principle to establish a data bridge allowing for the free flow of data between organizations in the United Kingdom and participating organizations in the United States.
“This announcement represents the UK’s intent to establish a data bridge for the UK Extension to the U.S.-EU Data Privacy Framework, subject to the UK’s data bridge assessment and further technical work being finalized, and dependent on the U.S. designation of the UK as a qualifying state under Executive Order 14086.
“Today’s announcement also reflects two years of progress and is a key step towards realizing both countries’ mutual ambition to establish a data bridge that would restore a robust and reliable mechanism for U.S.-UK data flows.
“A U.S.-UK data bridge would uphold the rights of data subjects, facilitate responsible innovation, and provide individuals in both countries greater access to the services that suit them, whilst reducing the burdens on businesses and delivering better outcomes for people.
“We expect that the establishment of the data bridge will also further facilitate transfers to U.S. organizations that rely on other data transfer mechanisms under UK law.
“Reaching this significant milestone builds on the goal set at the inaugural meeting of the U.S.-UK Comprehensive Dialogue on Technology and Data, in January, to finalize a data bridge for U.S.-UK data flows in 2023 and is reflective of the importance of international collaboration to meet the global challenges and opportunities on data.
“We will continue working together to facilitate trusted cross-border data flows, including on multilateral initiatives, such as the Global Cross-Border Privacy Rules Forum, and through international fora, such as the Organization for Economic Cooperation and Development (OECD).”
APEC CEO Summit USA 2023 To Convene World Leaders and Business Executives to Discuss Creating Economic Opportunity
The APEC CEO Summit USA 2023 will feature 30+ speakers from the public and private sectors, representing various industries, emerging voices, entrepreneurs, philanthropists, and world leaders from large and small economies. Speakers include senior executives from General Motors, Organon, Visa, Amazon, Boeing, Citi, Google, ExxonMobil, FedEx, Johnson & Johnson, Mastercard, Merck, Meta, Microsoft, Moody’s, Qualcomm, Uber, and UPS.
The United States will host the Asia-Pacific Economic Cooperation (APEC) CEO Summit convening more than 1,000 business executives and welcoming key world leaders from across the Asia-Pacific at the Moscone Center in San Francisco from November 15-16, 2023.
“As hosts of this year’s APEC CEO Summit, the U.S. will shape the agenda to prioritize the region’s most critical issues and work toward solutions to create a more inclusive and resilient Asia-Pacific,” said Monica Hardy Whaley, President of the National Center for APEC (NCAPEC), which is organizing the APEC CEO Summit USA 2023. “The world faces many challenges, and the business community is part of the solution. We have the leadership, ideas, and resources to help address key issues ranging from climate change and equitable growth, technology and digitization, to global health and supply chains.”
Under the theme “Creating Economic Opportunity” the APEC CEO Summit USA 2023 will focus on four driving topic areas:
- Sustainability: Actionable climate-conscious solutions, and circular economy, biodiversity and resource efficiency
- Inclusion: Stronger voices for small businesses, workers, and underrepresented communities
- Resilience: Disaster readiness, strengthening supply chains, and preparing APEC economies for future challenges
- Innovation: Technology, global healthcare, new ideas, and digital transformation across the region
Further details on the event and program agenda, including additional speakers, will be announced in the coming months.
Alongside APEC Leaders’ Week meetings and the Sustainable Future Forum taking place on the week of November 12-18, the APEC CEO Summit will reaffirm the importance of public-private dialogue in promoting global economic development.
APEC is the premier forum for public and private sector engagement on trade and economic opportunity in the fastest growing region in the world. The forum brings together 21 members, and offers a pathway to participation for large and small economies. This structure enables the APEC CEO Summit to meet the moment and create equitable opportunity for the wide range of workers, businesses, communities, and families throughout the region.
USDOT Announces More Than $660 Million Available Through the Port Infrastructure Development Program
WASHINGTON – The U.S. Department of Transportation’s Maritime Administration (MARAD) has announced a Notice of Funding Opportunity (NOFO) making available more than $662 million in Federal Fiscal Year (FY) 2023 funding for MARAD’s Port Infrastructure Development Program (PIDP).
The PIDP investment will modernize nation’s ports and help strengthen supply chains for generations to come, helping to reduce shipping time, costs, and ultimately the costs of goods for the American people. The President’s infrastructure package provides $450 million annually in funding for the Program.
“America’s ports play a central role in our supply chains,” said U.S. Transportation Secretary Pete Buttigieg. “With today’s announcement, we are helping make our ports safer, more efficient, and more reliable—strengthening supply chains, reducing costs for the American people, and positioning us for economic success.”
MARAD’s Port Infrastructure Development Program discretionary grants help eligible applicants including port authorities, states, local governments, indigenous Tribal nations, counties, and other eligible entities complete critical port and port-related infrastructure projects. Grants are awarded on a competitive basis to support projects that improve the safety, efficiency, or reliability of the movement of goods through ports and intermodal connections to ports. MARAD will also consider how projects address climate change and sustainability, equity, and workforce development objectives.
“This funding will support efforts by ports and industry stakeholders to improve port and related freight infrastructure to meet the Nation’s freight transportation needs and ensure our port infrastructure can support future growth,” said Maritime Administrator Ann Phillips. “The program also includes a statutory set-aside for small ports to continue to improve and expand their capacity to move freight reliably and efficiently, support local and regional economies, and support supply chain improvement.”
Recent projects funded include installation of fast charging stations and other port electrification components and the development of a scalable plan for transitioning the port and local maritime industry to zero-emission technologies in Jacksonville, Florida; the creation of an intermodal rail yard near an existing port terminal in Kaskaskia, Illinois; and the modernization of electric and stormwater infrastructure and warehouse capacity for the Cleveland-Cuyahoga County Port Authority in Cleveland, Ohio.
In the coming weeks, the Federal Highway Administration will open FY 2022-2023 grant applications for the Reduction of Truck Emissions at Port Facilities program, which will make $160 million available to test, evaluate, and deploy projects that reduce port-related emissions from idling trucks, including through the advancement of port electrification and improvements in efficiency.
MARAD will host a series of webinars that describe PIDP NOFO requirements and the PIDP application process. These webinars are an excellent resource for prospective PIDP applicants. The webinars will be announced in the near future on the PIDP webpage. Recordings of the webinars will be posted on the website for those that cannot participate in the live webinars.
USTR Releases 2022 Review of Notorious Markets for Counterfeiting and Piracy
WASHINGTON – The Office of the United States Trade Representative (USTR) today released the findings of its 2022 Review of Notorious Markets for Counterfeiting and Piracy (the Notorious Markets List). The Notorious Markets List highlights online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting or copyright piracy.
“The widespread trade in counterfeit and pirated goods harms the economic security of American workers and undermines our work to craft equitable and inclusive trade policy,” said Ambassador Katherine Tai. “The Notorious Markets List is an important tool that urges the private sector and our trading partners to take action against these harmful practices.”
Reflecting the Biden-Harris Administration’s worker-centered trade policy, the 2022 Notorious Markets List’s issue focus section examines the impact of online piracy on U.S. workers. The section describes how online piracy can impact the wages, residuals, pensions, and health care benefits that workers in the creative industries depend on and how combatting online piracy requires coordination between relevant actors in order to effectively address the rapidly shifting delivery methods of infringing content.
The 2022 Notorious Markets List also identifies 39 online markets and 33 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy. This includes continuing to identify the WeChat e-commerce ecosystem as one of the largest platforms for counterfeit goods in China. Other listed markets in China include online markets Aliexpress, Baidu Wangpan, DHGate, Pinduoduo, and Taobao, as well as seven physical markets located within China that increasingly use brick-and-mortar storefronts to support online sales of counterfeits.
Background
USTR first identified notorious markets in the Special 301 Report in 2006. Since February 2011, USTR has published annually the Notorious Markets List separately from the Special 301 Report, to increase public awareness and help market operators and governments prioritize intellectual property enforcement efforts that protect American businesses and their workers.
The Notorious Markets List does not constitute an exhaustive list of all markets reported to deal in or facilitate commercial-scale copyright piracy or trademark counterfeiting, nor does it reflect findings of legal violations or the U.S. Government’s analysis of the general intellectual property protection and enforcement climate in the country concerned. Such analysis is contained in the annual Special 301 Report issued at the end of April each year.
USTR initiated the 2022 Notorious Markets List Review on August 26, 2022, through publication in the Federal Register of a request for public comments. The request for comments and the public’s responses are online at http://www.regulations.gov, Docket number USTR-2022-0010.
Business Trends and Outlook Survey Data Release
JAN. 19, 2023 — The U.S. Census Bureau today released data from the Business Trends and Outlook Survey (BTOS), a survey that measures business conditions on an ongoing basis. The BTOS is the successor to the Small Business Pulse Survey (SBPS), a high-frequency survey that measured the effect of changing business conditions during the coronavirus pandemic and other major events like hurricanes on our nation’s small businesses.
The BTOS increases the scope of the SBPS to include large single-location employer businesses (those with 500 or more employees). It provides insight into the state of the economy by providing continuous, timely data for key economic measures every two weeks.
BTOS data are representative of all single-location employer businesses in the U.S. economy, excluding farms. By providing continuous data with geographic and subsector detail, BTOS captures the impact of events like natural disasters and economic crises and assists in monitoring recovery efforts.
The BTOS sample consists of approximately 1.2 million businesses with biweekly data collection. Selected businesses are split into six panels (approximately 200,000 cases per panel) that will be asked to report every 12 weeks for a year. The Census Bureau estimates it takes the average respondent approximately six minutes to complete the survey, including the time for reviewing the instructions and answers.
Starting October 13, data will be released biweekly and available by sector, state and the 25 most populous metropolitan statistical areas. Survey results give local, state and federal officials essential, real-time data to aid in policy and decision-making. In addition, the information aids businesses in making economic decisions.
USPTO introduces new tool to help creators identify their intellectual property
Today at the U.S. Patent and Trademark Office’s (USPTO) Women’s Entrepreneurship (WE) event in Naples, Florida, Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office Kathi Vidal announced the launch of the agency’s new Intellectual Property (IP) Identifier tool. This user-friendly, virtual resource— designed for those who are less familiar with IP—enables users to identify whether they have IP and the IP protections they need to support and advance their business, invention, or brand. The IP Identifier serves as an important foundation for an innovator, entrepreneur or creator’s IP journey. In addition to the tool helping identify a person’s or company’s intellectual property, it provides easily digestible information on intellectual property – patents, trademarks, copyrights, and trade secrets.
“Protecting your IP is a smart and necessary business strategy, and the IP Identifier is a great starting point for those new to IP,” Director Vidal told the audience at the WE event. “This resource will equip entrepreneurs with a basic understanding of the IP they have and will lead them to resources to protect it. We encourage everyone who is considering starting a business or trying to grow one to utilize this tool. It’s another example of our work to bring more people into the innovation ecosystem to increase American competitiveness, grow the economy, and solve world problems.”
The IP Identifier is comprised of two modules: The Basic IP Identifier; and the Advanced IP Identifier. The Basic IP Identifier module consists of six simple questions that allow users to quickly assess the type of IP they should protect. The Advanced IP Identifier module allows users to learn about their specific type of IP and obtain links to additional resources, including how to file an application for protection. A third module, Managingyour IP assets, is currently under development.
Companies benefit from having IP protection. When used as collateral, a company’s first patent increases venture capital funding by 76 percent over three years and increases funding from an initial public offering by 128 percent. It can also help serve as a recruiting tool: The approval of a startup’s first patent application increases its employee growth by 36 percent over the next five years. Further, protecting your IP can also increase your market share – a new company with a patent increases its sales by a cumulative 80 percent more than companies that do not have a patent.
The IP Identifier was announced as part of USPTO’s recently-launched Women’s Entrepreneurship (WE) initiative, a community-focused, collaborative, and creative initiative to inspire women and tap their potential to meaningfully increase equity, job creation, and economic prosperity. WE includes a new online hub for aspiring women entrepreneurs that provides key information on how to get started, how to identify and protect their intellectual property, and how to secure options for funding and how to build and maintain a network.
Martin J. Gruenberg Sworn in as 22nd FDIC Chairman
WASHINGTON – Martin J. Gruenberg was sworn in today as the 22nd Chairman of the Federal Deposit Insurance Corporation (FDIC). Travis Hill, who will serve as Vice Chairman, and Jonathan McKernan, who will serve as Director, were also sworn in as members of the FDIC’s Board of Directors (the Board).
“I am honored to serve again as Chairman of the FDIC,” said Chairman Gruenberg. “I look forward to working closely with my fellow Board members to carry out the FDIC’s critically important mission of safety and soundness, consumer protection, and financial stability.”
Vice Chairman Hill said, “It is a tremendous honor to have been appointed to serve as an FDIC Board member. I look forward to engaging with my fellow Board members, the FDIC staff, and counterparts at other agencies regarding the many important issues facing the FDIC.”
Director McKernan added, “The FDIC’s mission resonates deeply with me, as the stability and public confidence in the nation’s financial system is critical to a strong and growing American economy. I am eager to work with my colleagues on the Board and the FDIC staff to do my part to fulfill the agency’s vital mission.”
Chairman Gruenberg is the longest serving member of the Board, first joining as Vice Chairman in August of 2005. He previously served as FDIC Chairman from November 2012 to June 2018. Learn more about the Chairmen of the FDIC.
Prior to his appointment, Vice Chairman Hill served as Senior Advisor to the FDIC Chairman and Deputy to the FDIC Chairman for Policy from July 2018 until February 2022, and, prior to that, as Senior Counsel at the Senate Committee on Banking, Housing, and Urban Affairs.
Director McKernan previously served as Senior Counsel at the Federal Housing Finance Agency, on detail as Counsel on the staff of the Senate Committee on Banking, Housing, and Urban Affairs, and as Senior Policy Advisor at the U.S. Treasury Department and to Senator Bob Corker. Prior to his government service, from 2007 to 2017, Director McKernan was an attorney in private practice focused on banking and consumer financial law.
President Biden appointed Chairman Gruenberg for a term of five years as Chairman and a six-year term as a Director on the Board; Vice Chairman Hill for a term of six years; and Director McKernan to serve for an expiring term until May 31, 2024. The Board will now have a full complement of members for the first time since June 4, 2015.
The Board is comprised of five members who are appointed by the President of the United States and confirmed by the Senate. The chairman, vice chairman and inside director are appointed to six-year terms on the Board. The remaining two Board members are the Comptroller of the Currency and the Director of the Consumer Financial Protection Bureau. No more than three members of the Board can be from the same political party.