International Trade Administration

Overview

Mission Statement

I

TA’s mission during the reporting period was to: Help U.S. companies sell products and services

abroad in support of U.S. jobs at home.

Strategies and Activities

ITA faced significant external challenges during fiscal year 1999. Among these challenges was the

impact of the fast-paced trend toward globalization. As the world becomes increasingly

interconnected, ITA is forced to work harder to monitor, promote, and ensure equal access to

international trade for U.S. businesses. Complicating this matter is the heated political

environment stemming from the World Trade Organization negotiations in Seattle in December

1999. The argument around protectionism versus free trade continued to be a source of both

domestic and international contention throughout the year.

Although the U.S. economy is strong, external forces have negatively affected some sectors. For

example, exports of American manufactured goods have slowed markedly as a result of global

economic problems, prompting layoffs by U.S. manufacturing firms, and the loss of 499,000 net

jobs in the manufacturing sector since March 1998. In addition, imports challenged key sectors

like steel have been adversely impacted. 

In an increasingly global economy, the role of exports in sustaining a robust economic

infrastructure continues to grow. Exports support over 11 million U.S. jobs, including one in five

manufacturing jobs. In recent years, export-related jobs are paying wages fifteen percent higher

than the average U.S. wage. The competitive nature of the global marketplace raises challenges

for ITA in leveling the playing field for U.S. businesses abroad and helping to remove tariff and

non-tariff barriers to trade. Toward this end, ITA continues to carry out the Secretary’s Broadening

Trade initiative by helping firms break into new and under served international markets, while

expanding the export support of small- and medium-sized businesses.

Much of the success of the Broadening Trade initiative rests on the expansion of ITA’s outreach

efforts to small- and medium-sized enterprises (SMEs) to help them develop their export potential.

The U.S. Export Assistance Centers (USEACs) perform the valuable service of educating and

assisting SMEs and helping export-ready firms in need of technical assistance. Electronic

commerce and the Internet are other vehicles to increase export opportunities for SMEs.

Implementing an aggressive trade compliance program to aid U.S. companies in achieving the full

benefits of trade agreements is another key component of ITA’s strategy. The Trade Compliance

Center (TCC) monitors approximately 250 trade agreements and helps identify possible violations.

By compiling data on access problems and outcomes, ITA can measure the dollar value of

opening world markets to U.S. exports as a result of reducing or eliminating trade barriers. ITA

FY 1999 Annual Program Performance Report 33
34 FY 1999 Annual Program Performance Report

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ITA provides American business, governmental units and the general public with statistical

information necessary to improve their ability to export. ITA will also continue to improve subnational export statistics. Together with Census, ITA develops additional detailed trade data at

the State and local level and for the Services sector.

Also, ITA features an array of e-commerce products, including virtual trade shows, on-line

company matching systems, and video conferencing of American companies and prospective

foreign clients. 
FY 1999 Annual Program Performance Report 35

Enforce U.S. trade laws and agreements to promote

free and fair trade 

Rationale for Performance Goal:

This goal supports the Broadening Trade initiative as follows:

■ ITA’s Import Administration (IA) unit impartially enforces U.S. antidumping and

countervailing duty (AD/CVD) laws to ensure that American businesses and workers face

a level playing field in the domestic market vis-a-vis foreign competitors.

■ IA’s Subsidy Enforcement Office coordinates the Administration’s subsidies enforcement

efforts to ensure that U.S. exporters are not harmed by subsidized foreign competition.

■ ITA’s Market Access and Compliance (MAC) unit identifies existing and potential market

access problems. MAC also initiates U.S. government action to overcome market access

obstacles within different countries and regions.

■ A key element in these efforts is ITA’s Trade Compliance Center (TCC), which monitors

foreign compliance with over 250 trade agreements the U.S. has in force.

■ ITA’s Trade Development (TD) unit monitors international trade agreements governing

imports of essential items, such as rubber, coal, computers, supercompters, autos and

auto parts, textiles and a broad range of consumer goods. TD also articulates U.S.

industries’ needs and concerns to American negotiators of international trade agreements

and provides support for negotiating strategies.

FY 1999 Performance

Measure 1.a:

Value of market openings

This measure reflects the dollar value of opening world markets to U.S. exports by reducing and

eliminating barriers to trade. Companies experiencing difficulty in accessing a foreign market

engage MAC’s help to gain entry. The Trade Compliance Center (TCC) works in conjunction

with MAC’s regional units in solving compliance problems.

 

 
Data Validation and Verification

Data source: Companies benefiting from market access activities

Frequency: Annually, by fiscal year

Data storage: TCC will store and publish data.

Verification: Market access officers working on each case provide information from the company on the nature of

the access problem, estimated project value, status reports on the case and outcome. The data is 

then compiled and added to a MAC-wide compliance database maintained by the TCC.

FY 1999 Program Evaluation for ITA Performance Goal 1

No pertinent program evaluation studies were conducted in FY 1999 which supported the

subject performance goal. 

36 FY 1999 Annual Program Performance Report
FY 1999 Annual Program Performance Report 37

Increase the number of Small Business Exporters

Rationale for Performance Goal:

Although small- and medium-sized enterprises (SMEs) account for over 96 percent of all U.S.

exporters, the dollar value of their exports account for less than one-third of total U.S.

merchandise exports. SMEs represent a broad opportunity for increased export sales and

export-related job creation. 

This goal supports the Broadening Trade initiative as follows:

■ The Trade Development (TD) unit organizes export finance workshops and trade missions

targeted specifically to SMEs. TD’s Trade Information Center (TIC) provides SMEs with

country and export counseling, as well as information on regulatory requirements, trade

events, government programs and sources of export financing. TD’s Market Development

Cooperator Program provides financial support for innovative marketing ventures

undertaken by SME-focused nonprofit organizations. TD co-chairs the Federal

government’s Trade Advisory Committee which is dedicated to addressing the unique

trade policy interests of SMEs. 

■ By targeting small manufacturers and minority-owned businesses, the United States and

Foreign Commercial Service (US&FCS) will target areas within the U.S. business

community where exporting has been traditionally less active. This strategy will enable

US&FCS to demonstrate the benefits and accessibility of exporting to a wide audience

and generate the largest increases in numbers of small business exporters. 

FY 1999 Performance

Measure 2.a:

Number of New-to-Export Firms (NTEs)

Although US&FCS assists thousands of small businesses that are new to exporting each year, it

is difficult to quantify our successes. US&FCS’ collection of data to measure numbers of clients

who successfully export for the first time as a result of US&FCS assistance is wholly dependent

on a client’s willingness to provide such information. Many clients elect not to provide

information to US&FCS due to business proprietary concerns. Also, because actual exports

occur subsequent to the delivery of US&FCS services (frequently 12 to 18 months later), it is

difficult to match the short-term results of ITA activities (i.e., outputs) with longer-term gains by

American companies (i.e., outcomes) in a 12-month period. Further, it is extremely difficult to

track the actual dollar value of exports supported by US&FCS services because businesses are

reluctant to reveal their business proprietary information to the Federal government or to have

their success stories published for competitors to read.
Data Validation and Verification

Data source: US&FCS’ Client Management System (CMS) and the Office of Trade Events Management (OTEM).

Also, TD’s Office of Export Promotion Coordination.

Frequency: Statistics collected and reported quarterly and annually.

Data storage: US&FCS’ custom-designed Client Management System software operating on a Lotus Notes 

platform and OTEM. Consolidated figures collected and stored by US&FCS Office of Planning.

Verification: Client contacts and office activity are recorded and entered into CMS and OTEM upon occurrence. 

Each office compiles a quarterly Export Action Report, which details numbers of NTE and NTM 

export actions, client counseling sessions (both in-office visits and out of office visits), and other 

activities. Each office manager reviews, verifies, and signs the reports. 

Because of the difficulty in reliably measuring outcome performance, US&FCS instead tracks

numbers of firms new to the export market as circumstantial evidence of overall export growth

and export-fueled job creation.

38 FY 1999 Annual Program Performance Report
A number of program evaluation studies were conducted which indirectly supported the subject

performance goal. Specifically, Management and Program Reviews (MPRs) of day-to-day

operations were completed. These covered systems, procedures, and practices at three of ITA’s

foreign posts – Malaysia, Nigeria, and the Dominican Republic. Findings were made in the areas of

management training, market research, staff assignments, positions descriptions, status of prior

year funds and citing best practices specific to each office.

FY 1999 Annual Program Performance Report 39
Implement the President’s National Export Strategy

in conjunction with the Trade Promotion Coordinating Committee

(TPCC)

Rationale for Performance Goal:

One of President Clinton’s highest priorities has been to provide greater economic opportunities for

all Americans. In pursuit of this goal, the Administration developed this country’s first-ever National

Export Strategy to ensure that U.S. workers and businesses are able to profit from export

opportunities in markets throughout the world. The Trade Promotion Coordinating Committee

(TPCC), comprised of 20 Federal agencies and chaired by the Secretary of Commerce, issues an

annual report to Congress articulating our National Export Strategy. The Strategy focuses on

streamlining and strengthening government promotion and finance programs, regional trade

promotion strategies, responses to foreign competitive practices that threaten fair and competitive

market access, and initiatives that give exporters access to the tools they need to compete in the

global marketplace. 

Our challenge is to continue our export expansion in the face of increasing global economic

uncertainty. Financial turmoil, though subsiding, is still buffeting a number of economies around the

world, including Russia, Asia and Latin America. President Clinton has underscored to Russian and

Asian leaders that they must take tough steps to reform their economies and restore economic

confidence.

TPCC agencies’ export promotion program and activities counterbalance the increasing global

economic uncertainty by including technical assistance (financial, legal, measurements and

standards, and intellectual property rights) to support economic reforms in Asia and emerging

economies, increasing trade finance resources for U.S. exporters, engaging China in high-level

negotiations, and joining Africa in a real partnership that will benefit economies on both sides of

the Atlantic.

FY 1999 Performance

Measure 3.a:

Number of New-to-Market Firms (NTMs)

US&FCS’ collection of data to measure its programs is wholly dependent on a client’s willingness to

provide such information. Also, because actual exports occur subsequent to the delivery of

US&FCS services (frequently 12 to 18 months later), it is usually impossible to report on export

actions supported by US&FCS counseling services during the same period in which the services

were delivered. Further, it is extremely difficult to track the actual dollar value of exports supported

by US&FCS services because businesses are reluctant to reveal their proprietary information to

the Federal government as well as to have their success stories published for competitors to

read.

Because of these difficulties in reliably measuring outcome performance, US&FCS instead tracks

numbers of NTMs as circumstantial evidence of overall export growth and job creation. 

40 FY 1999 Annual Program Performance Report
Data Validation and Verification

Data source: US&FCS’ Client Management System (CMS) and the Office of Trade Event Management (OTEM).

Frequency: Statistics collected and reported quarterly and annually.

Data storage: US&FCS’ custom-designed Client Management System software operating on a Lotus Notes plat

form and OTEM. Consolidated figures collected and stored by US&FCS’ Office of Planning.

Verification: Client contacts and office activity are recorded and entered into CMS and OTEM upon occurrence. 

Each office compiles a quarterly Export Action Report, which details numbers of NTE and NTM 

export actions, client counseling sessions (both in-office visits and out-of-office visits), and other 

activities. Each office manager reviews, verifies, and signs the reports.

FY 1999 Annual Program Performance Report 41
Number of counseling sessions

Of the five ITA performance measures in the FY 2000 Annual Performance Plan, four are

outcome measures, and one is an output measure, i.e., “number of counseling sessions.” ITA

selected this output measure because of the substantial number of staff years it devotes to this

activity; specifically, in FY 1999, ITA conducted 296,769 counseling sessions.

Data Validation and Verification

Data source: US&FCS’ Client Management System (CMS) 

Frequency: Statistics collected and reported quarterly and annually.

Data storage: US&FCS’ custom-designed Client Management System software operating on a Lotus Notes plat

form and OTEM. Consolidated figures collected and stored by US&FCS’ Office of Planning.

Verification: Client contacts and office activity are recorded and entered into CMS and OTEM upon occurrence. 

Each office compiles a quarterly Export Action Report, which details numbers of NTE and NTM 

export actions, client counseling sessions (both in-office visits and out of office visits), and other 

activities. Each office manager reviews, verifies, and signs the reports.

FY 1999 Program Evaluation for ITA Performance Goal 3

A number of program evaluation studies were conducted which indirectly supported the subject

performance goal. Specifically, Management and Program Reviews (MPRs) of day-to-day

operations were completed. These covered systems, procedures, and practices at three of ITA’s

domestic sites – Indianapolis, Portland (OR), and St. Louis. Findings were made in the areas of

District Export Councils, partnership programs, performance measures, Commercial Service

teams and citing best practices specific to each office.

42 FY 1999 Annual Program Performance Report
Strengthen and institutionalize our trade promotion and

advocacy efforts

Rationale for Performance Goal:

This goal supports the Broadening Trade initiative. In slightly less than six years, ITA’s

Advocacy Center has helped over 250 U.S. companies win foreign contracts worth potentially

over $60 billion in U.S. exports over the life of the contracts.

This goal also supports the Digital Department initiative through its efforts to use the technology

of electronic commerce to help firms use the Internet both to receive ITA’s services and to

promote their own products abroad.

FY 1999 Performance

Measure 4.a:

Dollar value of gross exports supported through advocacy efforts

In continuing efforts to improve the quality of the services provided by the Advocacy Center,

Advocacy Center staff contacted 23 companies in late January 1999, with a request for

feedback on claimed FY 1998 successes in 24 separate competitions in which the USG

provided advocacy. The Advocacy Center asked a series of questions regarding the current

status of each project, material changes with respect to total project value, U.S. export content,

and satisfaction with Advocacy Center or U.S. Embassy/Consulate services. 

Data Validation and Verification

Data source: Companies that benefited from USG advocacy. 

Frequency: Annually (fiscal year)

Data storage: Advocacy Center will store and publish data.

Verification: Advocacy Center conducts yearly surveys of companies on claimed successes in separate 

competitions in which the USG provided advocacy. The survey requests information on the current 

status of each project, material changes with respect to total project value, U.S. export content, and 

satisfaction with the Advocacy Center and/or U.S. Embassy/Consulate services provided.

FY 1999 Annual Program Performance Report 43
FY 1999 Program Evaluation for ITA Performance Goal 4

The Advocacy Center conducts an annual survey of a sample of its customers to get feedback

on the effectiveness of its services. The annual survey of FY 1999 was undertaken during

January 2000, with the Advocacy Center contacting 18 companies regarding claimed “success”

in 19 separate competitions in which the USG provided advocacy - (The 19 competitions were

selected out of 78 successful projects for FY 1999). Survey responses will be tallied and

analyzed during the second quarter of FY 2000.

44 FY 1999 Annual Program Performance Report