ITA's Trade Agreements Compliance Program Helps Small Pennsylvania Company - YouTube

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>>NARRATOR: Billions of dollars worth of goods
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and services change hands every day around the world.
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Much of this commerce is governed
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by international agreements between countries
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that help ensure a framework for predictable fair trade.
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If you're a U.S. exporter or investor
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who has encountered a trade barrier caused
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by a foreign government policy or procedure,
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these agreements can be effective tools
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for overcoming that barrier.
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This is the story of one such problem and how it was resolved
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with the help of specialists
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in the Trade Agreements Compliance Program
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of the U.S. Commerce Department's International Trade
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Administration, or ITA.
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>>NARRATOR: Henrik Klinge and his father came
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to the United States in the late 1970s from Denmark to work
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as agents for a specialty refrigeration company
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in York, Pennsylvania.
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In 1984 they purchased the company
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and Klinge Corporation was founded.
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Since that day, they have almost doubled their workforce
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to accommodate large foreign contracts.
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Eighty-five percent of their business is from exports.
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Klinge Corporation had just won a multi-million dollar contract
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with the Australian military to supply refrigerated containers
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and power-generation equipment.
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Klinge planned to send these products to China to be mounted
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on containers and then ship them onward to Australia
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to fulfill the contract, but Klinge's products were held
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up in Chinese customs for reasons they did not understand.
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>>ALLAN KLINGE: These goods, even though we had shipped them
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in many, many times before, got held up and were sitting
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in customs for one week and then another week
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and then another week, and meanwhile we're going back
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and forth with our freight forwarder trying to understand,
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what is the issue that has come up.
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So there was quite a bit at stake with regard to all this,
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and primarily though, the well-being of the company,
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the reputation of the company and how
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in the future we might be seen to be able
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to handle these contracts.
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>>SARAH KLINGE: We actually received a newsletter
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from the ITA, which described their export assistance services
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and also provided instructions on how
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to report a trade barrier on the website.
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So I submitted the report on the website, a couple months
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after we initially had our equipment held,
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and the same afternoon I heard back from Adam Boltik,
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who put us in touch with Bryan O'Byrne.
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>>NARRATOR: When a company reports a problem,
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specialists in ITA's Trade Agreements Compliance Program
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investigate the issue and work directly
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with the affected industry to develop a strategy
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to eliminate the barrier and to ensure that U.S. rights provided
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by our trade agreements are protected.
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>>BRYAN O'BYRNE: What the Chinese were doing were
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misapplying a technical regulation,
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and making it more trade restrictive than necessary.
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That falls under the WTO-TBT Agreement as problematic.
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So what we did is just simply remind them of those commitments
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and integrate that into the relationship.
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And usually when that happens, people remember, oh, yeah,
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we did have an interest in this trade agreement and we want
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to be known as a country that lives by its trade agreements.
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>>NARRATOR: How does ITA use the WTO framework to resolve current
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or potential trade problems
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U.S. industry experiences, such as this one?
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>>JENNY MAY: I think there are two sides of the coin.
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First of all, we need to make sure that the laws
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and regulations on the books comply with the WTO requirement,
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and secondly we need to look at in terms of implementation,
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are rules and laws being implemented evenly?
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>>NARRATOR: The Trade Agreements Compliance Program uses many
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resources to resolve trade barriers,
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including government-to-government
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discussions, such as a roundtable,
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which includes the participation of business leaders.
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Bryan O'Byrne was organizing a roundtable with China
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at the time and invited Henrik Klinge to participate.
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>>HENRIK KLINGE: In Ningbo, I met Bryan O'Byrne as the head
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of the delegation that was there.
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So there was all hands on deck from the U.S. side.
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>>ALLAN KLINGE: We really valued that opportunity and we kind
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of joked around here because we saw the list of attendees.
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I think it was maybe Dell, Microsoft and then Klinge,
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so we felt pretty involved and valued at that point.
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>>BRYAN O'BYRNE: We leveraged these discussions,
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these bilateral discussions with the Chinese,
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and obtained a commitment from the Chinese authorities to work
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and work to resolve the issue.
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In the end, Klinge was able to fill its contract
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with the Australian Government, so that barrier was eliminated.
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>>SARAH KLINGE: I would advise small businesses
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to take advantage of the governmental resources that are
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out there, such as reporting a trade barrier,
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which was clearly a success for us.
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I think there is somewhat a fear if you're a small business
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that you're just not as important.
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So it was a surprise that we received all the support
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that we did.
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>>ALLAN KLINGE: The eight million dollar project
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that we had, everything has been moving very smoothly
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within that process.
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We really feel like that, as far as a direct business impact
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in terms of basically money in everybody's pocket here
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at the company and jobs for everybody,
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was the greatest takeaway.
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>>NARRATOR: In addition to challenges
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like the one you just saw get resolved, we can also help you
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with trade barriers such as these:
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Intellectual Property protection, Import Licensing,
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Rules of Origin, Investment, Services,
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Government Procurement, and Tariffs.
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Eliminating one barrier can open opportunities
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for a whole industry.
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Contact us to learn more
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about ITA's Trade Agreements Compliance Program,
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led by the Market Access and Compliance Unit.
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