International Marketing Practices

windows, flooring, and molding, have decreased. Trade partners for U.S. value- added wood products are diverse but, in general, include Canada, Mexico, China, Japan, and Germany.

Table 9. U.S. exports of value-added products, 2007 and 2017, in thousands of dollars [8].

Product

2007

2017 Change Major Trade Partners

Cooperage prod. 1 Treated lumber

89,140 209,856 + 135% U.K., Ireland, Canada, Japan, Spain 74,278 172,766 + 133% China, Mexico, Leeward Is., Bahamas, Jamaica 63,779 149,118 + 134% Canada, Mexico, Brazil, Colombia, Germany 41,872 123,342 + 195% China, Canada, Ghana, Mexico, Saudi Arabia 14,914 120,936 + 711% Mexico, Canada, Germany, Bahamas 89,431 116,487 + 30% Canada, Mexico, Germany, Korea, Japan 145,637 84,665 − 42% Canada, Mexico, Bahamas, Japan 76,810 62,591 − 19% Canada, Japan, Australia, New Zealand, Korea 110,794 39,513 − 64% Canada, Mexico, Bahamas, U.K. 67,339 29,308 − 56% Canada, Mexico, Japan, Bahamas, China

Railroad ties

Poles Siding

Packing material 2 Doors & frames Windows & frames

Flooring Molding

1 Includes casks, staves, hoops 2 Includes pallets, skids, cases, boxes, etc. Free Trade Agreements

A Free Trade Agreement (FTA) is an agreement between two or more countries that come together to participate in trade through established terms, effectively reducing barriers to export [37]. As of 2019, the U.S. has 14 established FTAs with 20 countries that help to create a more stable environment for international trade, often at lesser costs (Table 10) [37]. Benefits brought forth by FTAs include access to foreign markets, economic growth, and job creation by providing a number of opportunities, such as the ability to bid on government contracts, guarantee that U.S. investors will receive adequate compensation, ability for suppliers to offer services, enforcement of American intellectual property rights, and development of product standards in the FTA partner country [37, 38]. Partnering countries often regulate the conditions for preferential treatment and outline a detailed plan for implementation. To reap benefits from a Free Trade Agreement, products must be manufactured in the FTA territory, meet the appropriate Rule of Origin specifications, and conform to the required documentation [39]. In addition, many trade agreements do not immediately go into effect; instead, they often roll out gradually. For example, the U.S.–Chile Free Trade Agreement began in 2004, with 80% of consumer industrial goods exported from the U.S. to Chile considered immediately duty free [40, 41]. Of the remaining 20% of consumer goods, forest products were among the first to have tariffs phased out, and all U.S. products entering Chile have been duty free as of January 1, 2015 [40].

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