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Baic Factors Affect The Foreign Trade Situation

By Expert Author: smith maria

Planning and Finance Ministry of Commerce and the Institute of International Trade and Economic Cooperation 28, 2003 release, "US's foreign trade situation," Prospects of the 2004 report of the world economy and world trade, the overall situation. Report that the overall situation continues to become better, and still need to focus on related issues.

Four factors influence cannot be ignored:

First, the export tax rebate system reform on exports can not be ignored. Since January 1, 2004, US will implement a new export tax rebate policy to reduce export tax rebate rate will increase the cost of export enterprises, export expansion may affect the enthusiasm, some enterprises had been in the protection of the low-profit goods may be give up the export of some labor-intensive products face intense competition may be forced to withdraw from the international market, thus making the total expansion of US's export growth and the impact of varying degrees. Meanwhile, the export tax rebate increment after the implementation of the central and local share, will lead to less new export tax rebates and limited inter-regional issues such as acquisition, also need attention.

Second, trade protectionism, the threat of US's export growth further increased. In recent years, a variety of trade protectionism against US acts of the rise, the development of export trade to US pose a serious threat. Therefore, we should attach great importance to the development trend of international trade protectionism, to take effective countermeasures to prevent its employment in US, foreign exchange income and social stability of the possible negative impact.

Third, WTO transition period after the response to a very difficult task. In 2004 after US's
Third, the developed countries in the ascendant wave of industrial restructuring and the transfer, import and export for US to expand trade scale and create more opportunities. Currently, to multinational companies led by information technology represented a new round of worldwide industrial restructuring and the transfer process in the ascendant. With the gradual improvement of the world economic situation, will promote the international direct investment to become more active again. In recent years,

US's investment environment has improved, especially the Yangtze River, Pearl River Delta has the two advantages of industrial clusters, foreign capital continued to flow into US, the prospect of better foreign direct investment-led growth of US's import and export trade even open space. Fourth, US will continue to maintain rapid economic growth, institutional policy environment tends to improve.

From the current trend of economic development, US's economy has entered a new round of growth cycle. In 2004, US will adhere to the principle of expanding domestic demand, continue to implement the proactive fiscal policy and prudent monetary policy, national economy will maintain a rapid growth momentum is expected to more than 7% GDP growth is expected.

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