In conjunction with the Transatlantic Trade and Investment Partnership (T-TIP) negotiations, the Industrial Truck Association (ITA) has two primary objectives: "the elimination of all tariffs immediately" and "harmonisation of non-tariff issues through a transparent process".

The White House says T-TIP aims to further open European Union (EU) markets, strengthen rules-based investment to grow the US-EU investment relationship and "eliminate all tariffs on trade".

During May, "we had meetings with the Department of Commerce and the International Trade Office", says Brian Feehan, ITA president. The proposal for concluding T-TIP negotiations by the end of 2014 is a "very aggressive timeframe" when considering the complicated issues.

ITA's 19 regular member companies manufacture and sell more than 90% of the powered industrial trucks (PITs) sold in North America, and ITA's 34 associate member companies manufacture the great majority of components and attachments for forklifts manufactured in the US.

In prepared comments, ITA says, "The PIT market is global in nature and is very competitive. PITs are manufactured in virtually every industrialised country and are exported throughout the world. In 2011, the worldwide market for PITs was approximately 974,582 units," quoting World Industrial Truck Statistics.
The US market accounted for 155,022 units, the China market for 238,263 units and Western Europe for 276,404 units.

"The ITA supports a primary objective of the elimination of all tariffs immediately on powered industrial trucks," the association says. "The US market is open to PITs manufactured outside the US as all foreign-manufactured PITs enter the US duty-free."

The US eliminated import tariffs on PITs in the late 1980s, while other countries maintained their tariffs. "Thus, in stark contrast to the US tariff policy for imported PITs, PITs manufactured in the US are subject to significant import tariffs in other countries," the association says. The EU imposes a 4.5% tariff on PIT imports. China has a 9.0% tariff, applicable to internal combustion-powered PITs.

In pursuing its secondary objective, ITA wants negotiators to address both existing regulatory differences and the process for developing new regulations.

"Non-tariff barriers also need to include customs and trade facilitation, regulatory cooperation, conformity assessment and intellectual property rights protection," ITA says. "Any new process for the development of new regulations or the harmonisation of existing regulations should be transparent and open to provide for accountability for all stakeholders."

US-manufactured PITs "are handicapped by the protectionist tariffs imposed" elsewhere, ITA says. "PITs from these countries enter the US free of any duty. Rather than seeking the imposition of tariffs on PITs entering this country, ITA urges a strong stand against the continuation of tariffs on US-manufactured PITs."

Growth projected for 2013

In a separate matter, data that was gathered from ITA regular members estimates expected growth of 2-3% for 2013 versus 2012, with another 1-2% increase anticipated in 2014. ITA gathers market intelligence quarterly to help its members in the US, Canada and Mexico markets depict trends and recognise the changing needs of the industry.

In survey results from April, ITA members project the 2013 market for forklifts at 179,000-184,000 units, compared to 178,904 for 2012.


In addition, 89% of members expect that in 2013, they will increase overall factory shipments above 2012 levels.

"We're seeing a promising trend of renewed growth in demand for powered industrial trucks since 2009 to 2010, when the recession greatly impacted our industry," says Jim Moran, ITA chairman. "This steady growth shows some stability returning to the marketplace."

ITA says about half of the companies report they are on track to increase the number of production employees this year above 2012 numbers.

Moran says good news for the forklift industry is usually good news for the country. He notes that forklift sales often mirror the ups and downs of the country's gross domestic product.

Membership of Washington-based ITA is limited to manufacturers that sell forklifts in North America, Canada and Mexico, but ITA members include manufacturers based in Europe, China, Japan, South Korea and Taiwan as well as the US.