- The U.S. International Trade Commission will update their report on the economic effects of import restraints, tariffs, customs and border procedures on the trade of intermediate goods and global supply chains, according to a press release.
- Changes in global trade practices can vastly reduce inefficiencies in supply chains, which often witness the back-and-forth transport of intermediate goods across various countries.
- The report should overview the inefficiencies in order to help address them later, according to a letter sent to the Commission last month by the U.S. Trade Representative. Public input to inform the report is welcome in person or writing.
Much of the economic data reflecting the U.S. economy depends on finished goods, but the finished-good stage is only a small portion of many company's supply chain.
Many companies purchase their parts from companies headquartered in the U.S., but who produce their parts in China, Mexico, Brazil or elsewhere. Each time a good crosses the border, tariff and time costs are added during custom clearance, adding to the overall value of the finished good.
Every three years the U.S. International Trade Commission updates the report, and adds a special investigation.
Last update, published December 2013, investigated "Services' Contribution to Manufacturing" found intermediate services - whether through design, software or R&D contributions — added to manufacturers' productivity gains. It also estimated full liberalization of import restrains would add $1.1 billion to welfare each year.
Based on the timeline, the special investigation on "Effects of Tariffs and of Customs and Border Procedures on Global Supply Chains" will be released December 2017, along with the usual economic analysis.