{"id":1353,"date":"2018-03-06T13:07:31","date_gmt":"2018-03-06T16:07:31","guid":{"rendered":"http:\/\/www.abrazpe.org.br\/?p=1353"},"modified":"2018-03-06T13:07:31","modified_gmt":"2018-03-06T16:07:31","slug":"as-trump-moves-to-erect-trade-barriers-foreign-trade-zones-aim-to-take-them-down","status":"publish","type":"post","link":"https:\/\/www.abrazpe.org.br\/index.php\/2018\/03\/06\/as-trump-moves-to-erect-trade-barriers-foreign-trade-zones-aim-to-take-them-down\/","title":{"rendered":"As Trump moves to erect trade barriers, &#8216;foreign trade zones&#8217; aim to take them down"},"content":{"rendered":"<p class=\"estimated-read-time\">Tempo de leitura:<small> 10 minutos<\/small><\/p> <p>Simon, Colo. This tiny truck-stop town, 90 miles southeast of Denver and home to fewer than 2,000 people, is flanked on all sides by endless, undulating hills. Limon\u2019s busiest areas are its two interstate exits, where truckers and road-trippers pull over to grab gas or fast food.<\/p>\n<p>There\u2019s no major airport here, nor are there big companies that depend on international trade. Yet civil leaders believe they can boost the local economy by thinking big: Limon recently set up its own foreign trade zone, or FTZ, a designation that can help domestic and foreign-owned companies lower their customs duties and fees.<\/p>\n<p>Hundreds of cities and counties have created foreign trade zones since the 1930s in a bid to attract and retain employers. As President Donald Trump <a href=\"http:\/\/money.cnn.com\/2018\/03\/04\/news\/economy\/companies-respond-to-trump-tariffs\/index.html\">announces new tariffs<\/a> and threatens to scrap longtime free trade agreements, the zone program may attract more interest from companies and communities.<\/p>\n<p>\u201cIn a world where trade barriers increase, foreign trade zones become more valuable,\u201d said Matt Gold, a former U.S. trade negotiator and adjunct professor of international trade law at Fordham University School of Law in New York City.<\/p>\n<p>But for many communities that have set up a zone recently, the designation has not amounted to much.\u00a0About half the 80 zones created in the past two decades didn\u2019t have a single company using them in 2016, according to a <em>Stateline<\/em> analysis of federal data. Nationwide, 195 zones are currently active, about two-thirds of the total zones created since the program began.<\/p>\n<p>Although hundreds of thousands of people work in these zones, the program\u2019s impact on the economy isn\u2019t clear. While supporters say the zones help U.S.-based companies compete with international rivals, critics say the zones hurt domestic suppliers by making it easier for companies to source components from overseas.<\/p>\n<p>The lack of evidence didn\u2019t stop Limon. \u201cWe see this FTZ project as not only beneficial but a practical necessity,\u201d Mayor Julie Coonts wrote in support of Limon\u2019s <a href=\"http:\/\/ita-web.ita.doc.gov\/FTZ\/OFISLogin.nsf\/0845a86a92f9c72b852575b7006200e4\/8b44d8dd6e7d5d7285257d320044278d\/$FILE\/Doc.%20B-54-2014%20Application.pdf\">zone application<\/a> to the federal Foreign-Trade Zones Board, which was approved in 2015. Without a zone, she wrote, Limon would be at a disadvantage compared to communities that already have one.\u00a0There are no real costs to having the designation, aside from the money spent on the staff time required to pull together and submit an application.<\/p>\n<p>In tiny Limon, civic leaders are watching the headlines. No companies have officially joined the foreign trade zone so far. Hopefully, the zone will attract warehouses to the trucking corridor, said Troy McCue, executive director for the Lincoln County Economic Development Corporation.\u00a0\u201cYou have to buy into the long-term vision that it might be eight, 10 years before we see something, but we\u2019ll see it,\u201d he said.<\/p>\n<p>The foreign trade zone program was created during the Great Depression to help companies compete with overseas rivals in an era of high tariffs. Trade barriers are much lower today, but the zones can still be cost savers for some companies \u2014 particularly automotive manufacturers, electronics manufacturers and oil refiners. And they might become more attractive if Trump\u2019s tariffs spark a trade war.<\/p>\n<p>Foreign trade zones work by being a type of customs limbo: Foreign and domestic companies that import goods into a zone can delay paying duties until the goods leave the zone. Manufacturers that operate in a zone choose whether to pay duties on their imported components or on their final product, and don\u2019t have to pay duties on imported goods that are later re-exported.<\/p>\n<p>Companies that rely on imports can realize big savings from the program. And companies that handle frequent, high-value shipments can also benefit, as zone users can streamline their paperwork and reduce customs fees.<\/p>\n<p>Unlike free trade zones overseas, which usually have a geographic boundary near a port or city, U.S. foreign trade zones and subzones can be anywhere, and the geography doesn\u2019t have to be contiguous. A company that has foreign trade subzone status through Denver\u2019s zone, for example, has a facility in Pueblo, more than 100 miles away.<\/p>\n<p>Supporters say that having a trade zone can help a community land a major employer, though it can take a while. \u201cI\u2019ve seen time and time again where six, nine years down the road a huge manufacturer comes in and changes the lives of the whole community,\u201d said Craig Pool, co-founder of the Foreign-Trade Zone Corporation, a company based in Mobile, Alabama, that administers foreign trade zones and offers consulting services.<\/p>\n<p>Having a foreign trade zone helped Chattanooga, Tennessee, land a Volkswagen plant in the 2008, for instance. Volkswagen only considered sites within foreign trade zones, said Steve Hiatt, director of business development for the Chattanooga Chamber of Commerce.<\/p>\n<p>When it applied to the Foreign-Trade Zones Board for permission to manufacture in the Chattanooga zone, Volkswagen said being there would cost $300,000 a year in inventory management and fees but would save $1.9 million a year in <a href=\"http:\/\/ita-web.ita.doc.gov\/FTZ\/OFISLogin.nsf\/0845a86a92f9c72b852575b7006200e4\/1bf4070f5399ad038525761f004495fe\/$FILE\/63125629.pdf\/Volkswagen%20of%20America%20Application(7-13-09).pdf\">reduced paperwork and customs charges<\/a>.<\/p>\n<p>The <a href=\"http:\/\/www.timesfreepress.com\/news\/business\/aroundregion\/story\/2011\/mar\/19\/volkswagen-could-save-nearly-2-million-year-tariff\/45301\/\">United Auto Workers union opposed the zone<\/a> application and argued that zone authority would hurt American car companies and domestic suppliers, according to the <em>Chattanooga Times Free Press<\/em>.<\/p>\n<p>Today over 2,000 people make cars and sport utility vehicles at Chattanooga\u2019s Volkswagen plant. \u201cThe utilization of the Foreign Trade Zone helps increase our products\u2019 competitiveness in the U.S. and abroad,\u201d said Keith King, a spokesman at Volkswagen Chattanooga, in a statement.<\/p>\n<p>There\u2019s little research on whether foreign trade zones help or hurt the economy, or encourage companies to employ more workers than they otherwise would. Academic papers on the subject tend to present theoretical arguments about the zones rather than <a href=\"https:\/\/www.gao.gov\/assets\/690\/686218.pdf\">hard evidence<\/a>, according to a 2017 Government Accountability Office review of the research.<\/p>\n<p>The success of foreign trade zones may depend on community attributes beyond the mere existence of a zone, some zone managers say. Colorado relies less on exports than many other states. The cities of Denver, Colorado Springs and Limon all have zones, but only Denver\u2019s is active.\u00a0About six companies are approved to use Denver\u2019s zone, but fewer may be actively using it, said Abdul Sesay, the international business development representative for the city\u2019s Office of Economic Development.<\/p>\n<p>Most companies that have joined the zone are not new to Denver or came to the area for another reason, he said, such as the qualities of the area workforce or its location. Zones are common enough \u2014 and easy enough to establish \u2014 that their presence doesn\u2019t drive corporate decisions, he said.<\/p>\n<p>Colorado Springs\u2019 experience shows that foreign trade zones don\u2019t insulate users from broader economic trends. Apple made computers in the Colorado Springs zone in the 1990s before shifting production overseas. Quantum Corporation made data storage products there in the 2000s before it outsourced.<\/p>\n<p>Pool said some companies insist on setting up a facility in a foreign trade zone but then never apply to use the zone designation. From an economic development perspective, he said, a new company benefits the community even if it doesn\u2019t officially use the zone.<\/p>\n<p>Troy McCue, executive director for the Lincoln County Economic Development Corporation, stands surrounded by gas stations, fast-food restaurants and hotels close to Limon, Colorado. Local economic development officials such as McCue hope that the foreign trade zone will attract new businesses to the area.<\/p>\n<p>&nbsp;<\/p>\n<p>Kicking back in one of Limon\u2019s fast-food restaurants on a recent day, McCue outlined the economic challenges faced by the rural community.\u00a0\u201cLimon can\u2019t be the next Parker,\u201d McCue said, naming a booming Denver suburb. \u201cWe can\u2019t do that because we don\u2019t have the water.\u201d It\u2019s so dry out on Colorado\u2019s eastern plains that Lincoln County likely can\u2019t support more than double, maybe triple, the 5,000-odd people who live in the county now, he said.<\/p>\n<p>Towns in the area have always been small, and they\u2019re shrinking as farming jobs vanish. Their size puts limits on their growth: Limon doesn\u2019t have sufficient electricity, water or wastewater infrastructure to recruit many companies, McCue said.<\/p>\n<p>Limon isn\u2019t the only rural community or small town to seek a foreign trade zone designation. In recent years counties have established zones in upstate New York, Mississippi and Vermont, as have economic development organizations in northwest Iowa and coastal Maine. Some of those zones are active, some are not.<\/p>\n<p>No businesses have joined the zone that Brunswick, Maine, created in 2012, for instance. There are some international manufacturers in the college town, but they may be too small to take advantage of the zones, said Jeff Jordan, deputy director of the Midcoast Regional Redevelopment Authority. \u201cIf it\u2019s a real small operation, it\u2019s probably not worth it.\u201d<\/p>\n<p>Joe Kiely, Limon\u2019s foreign trade zone director, has received the application for the zone\u2019s first company. It\u2019s a manufacturer he declined to name that supplies parts to Vestas, a Danish wind turbine maker with four facilities in Denver\u2019s foreign trade zone. Unfortunately for Lincoln County, the supplier is based near Denver on the far western side of the five-county zone.<\/p>\n<p>Kiely purposely drew the boundaries of Limon\u2019s zone to brush up against the Denver metropolitan area, reasoning that it made more sense to touch the state\u2019s largest city and coax users eastward than to plop a zone in the middle of Lincoln County, McCue said. Some county commissioners have mixed feelings about the strategy, which likely will mean many zone users are far away, he said.<\/p>\n<p>Kiely said it cost about $35,000 in public funds for Limon to get the foreign trade zone designation. There was little opposition: While several members of Congress, local economic development groups and businesses lent letters of support to Limon\u2019s foreign trade zone application, no organizations filed comments against the proposal, according to the International Trade Administration, which oversees the Foreign-Trade Zones Board.<\/p>\n<p>The long-term plan for Limon\u2019s zone is to attract warehousing and distribution companies to the county, with its cheap real estate and traffic-free highways, McCue said. He has spoken with a wind turbine company that\u2019s interested in using a foreign trade zone to store some equipment, for instance.\u00a0While there aren\u2019t any wind turbine makers in Lincoln County, there are wind farms all over the place. Truckers that stop in Limon can see rows of turbines lazily turning on the horizon.<\/p>\n<p>The mixed record of Colorado\u2019s foreign trade zones hasn\u2019t stopped more communities in the state from trying to get in on the action. The city of Grand Junction and its surrounding counties in Western Colorado are so committed to the foreign trade zone idea that they\u2019re paying $1 million to establish a customs office at the small regional airport \u2014 a prerequisite for setting up a zone.<\/p>\n<p>\u201cWe\u2019ve watched the rest of the state boom, and <a href=\"http:\/\/www.cpr.org\/news\/story\/grand-junction-aims-for-foreign-trade-to-boost-a-lagging-economy\">we\u2019re still struggling<\/a>,\u201d Robin Brown, executive director of the Grand Junction Economic Partnership, recently explained to Colorado Public Radio. Creating a foreign trade zone will make the region more attractive to manufacturers, she said.<\/p>\n<p><a href=\"http:\/\/www.pewtrusts.org\/en\/research-and-analysis\/blogs\/stateline\/2018\/03\/06\/as-trump-moves-to-erect-trade-barriers-foreign-trade-zones-aim-to-take-them-down\">Leia mais<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><small> 10 minutos<\/small> Simon, Colo. This tiny truck-stop town, 90 miles southeast of Denver and home to fewer than 2,000 people, is flanked on all sides by endless, undulating hills. Limon\u2019s busiest areas are its two interstate exits, where truckers and road-trippers pull over to grab gas or fast food. There\u2019s no major airport here, nor are there big companies that depend on international trade. Yet civil leaders believe they can boost the local economy by thinking big: Limon recently set up its own foreign <a href=\"https:\/\/www.abrazpe.org.br\/index.php\/2018\/03\/06\/as-trump-moves-to-erect-trade-barriers-foreign-trade-zones-aim-to-take-them-down\/\" class=\"more-link\"><span>Continue lendo<\/span>\u2192<\/a><\/p>\n","protected":false},"author":4,"featured_media":132,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7],"tags":[],"class_list":["entry","author-adm_hb2018","post-1353","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artigos","category-noticias"],"_links":{"self":[{"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/posts\/1353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/comments?post=1353"}],"version-history":[{"count":1,"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/posts\/1353\/revisions"}],"predecessor-version":[{"id":1355,"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/posts\/1353\/revisions\/1355"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/media\/132"}],"wp:attachment":[{"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/media?parent=1353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/categories?post=1353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.abrazpe.org.br\/index.php\/wp-json\/wp\/v2\/tags?post=1353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}