Supply Chain Security Working Group

U.S. businesses are linked together through a global web of interconnected, predictable, and efficient supply chains.  They rely on these global supply chains to access international consumers and compete in the global marketplace.  Improvements that address cross-border friction smooth the flow of trade and ensure timely delivery of inputs and final products.

Manufacturers import and export parts and supplies from around the globe.  They bring those products together in a just-in-time delivery environment to enhance their competitive advantage and provide the best value for the consumer. They then export their products around the globe.  This story is not unique, both our importers and exporters use the supply chain to create U.S. jobs and promote U.S. economic growth.  With 56% of global trade being intermediate products, our manufacturers are dependent on trade moving efficiently through the supply chain to remain competitive.

The U.S. Chamber of Commerce promotes the modernization of global supply chains and cross border trade flow. Through this modernization we enhance the competitiveness of U.S. businesses and unleash the potential for small-and medium-sized businesses to access foreign markets.  The Chamber works with a network of companies, associations and governments to promote global customs modernization breaking down barriers companies face in international markets.

The Facts

  • More than 28% of U.S. GDP is tied to trade, and that number will continue to grow. Accessing international markets without unnecessary trade burdens is critical to American leadership in the global economy.
  • Transportation and logistics represent 7.7% of U.S. GDP; by comparison, logistics costs represent 16% of China’s GDP and 12% of India’s GDP. This competitive advantage is critical to U.S. economic competitiveness.
  • Efficient supply chains translate into increased profits. AMR Research concluded that the average total return of companies on the “Supply Chain Top 25” was 17.89% compared with returns of 6.43% for the Dow Jones Industrial Average.
  • Countries with efficient logistics systems experience an additional 1% in GDP growth and a 2% increase in trade.
  • 56% of imports are intermediate goods, which makes trade facilitation critical to our manufacturers.
  • Inefficient border procedures can add as much as 15% to a product’s cost.
  • The World Economic Forum and the World Bank concluded that reducing supply chain barriers could increase global GDP up to six times more than removing all tariffs.

The Chamber’s Plan to Modernize Global Supply Chains

  • Promote trade facilitation and customs modernization to enable the efficient movement of goods through the global supply chain.
  • Engage Congress to develop supply chain and trade facilitation legislation that includes business solutions to logistics, cross-border, and customs facilitation issues.
  • Reverse thickening border trends and promote security cooperation through a multi-layered, risk-based approach with our trade partners to ensure that mandates do not restrain legitimate trade.
  • Promote global convergence of cross-border transportation, security, customs processes and regulation to enhance the efficient transport of trade.
  • Aggressively respond to regulations and legislation that restrain supply chain facilitation and trade.
  • Work with the United States Trade Representative, all countries in the negotiation, and member companies to promote trade facilitation, efficient supply chains, and rational customs principles into the Trans-Pacific Partnership, the Transatlantic Trade and Investment Partnership and the World Trade Organization’s Trade Facilitation Agreement.
  • Ensure public and private sector cooperation when identifying threats and creating appropriate solutions to maximize the impact on security and minimize the impact on business and trade.
  • Advance customs modernization and international best practices to achieve transparent and effective regulatory standards for products in the global supply chain.

Global Supply Chain, Customs and Trade Facilitation

To respond to an abundance of supply chain security regulation and legislation the U.S. Chamber of Commerce started the Supply Chain Security Working Group.  This group of companies and associations works with global trade, security and customs officials to ensure that new security regulation and legislation are mindful of the economic need to facilitate legitimate trade.  The group ensures that these security and customs barriers do not inhibit the free movement of trade by working with policy makers at the Department of Homeland Security, the Department of Commerce, the Department of Transportation, The White House, Congress, and the international community to provide smart business and security solutions that face ports of entry and global supply chains.


Steps to a 21st Century U.S.-Mexico Border

The U.S. Chamber of Commerce released a report outlining recommendations to make enhancements to trade and security mutually supportive along the U.S.-Mexico border. Steps to a 21st Century U.S.-Mexico Border makes a series of proposals addressing trade facilitation, supply-chain security, infrastructure, immigration, and travel issues that define the border and determine its efficiency.

Download: Steps to a 21st Century U.S.-Mexico Border


Finding the Balance: Shared Border of the Future

The U.S. Chamber of Commerce and the Canadian Chamber of Commerce, in partnership with 47 business associations from both sides of the border, issued a joint report entitled Finding the Balance: Shared Border of the Future.

Download: Finding the Balance: Shared Border of the Future

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