With 2024 behind us the American World Trade Chamber of Commerce looks at the key takeaways and forecast for 2025. We had record certificate of origin requests and saw our chamber network grow. We also worked with exporters in on growing challenges they face doing business in an uncertain world. We look today at the 2024 trends for exporters and what the future may hold for US shippers.
A Year of Growth
The AWTCC Chamber network continued to grow with over 20 new chambers joining the Export Affiliate Program. Notably, Greensboro in North Carolina and El Paso in Texas both had extremely successful collaborations and have been able to help exporters in their communities succeed. Additionally, a new collaboration with the Northern Ohio Association of Chambers of Commerce (NOACC) has seen a successful approach to delivering the partnership to chambers in the region.
Documentation continued to grow throughout 2024. Requests grew an average of 14% over the year. This increase was generally consistent, with each month being higher than the same month the previous year.
For destination countries, 2024 saw India as our clients’ top destination. This is the first time India has taken the top spot. We expect demand here to grow as India’s economy continues to grow. China came second for our clients, followed by Saudi Arabia, the United Arab Emirates, and the Netherlands. With Amsterdam as a global transshipment point, the Netherlands saw the most considerable individual growth, given that 2 years ago, they did not make the top 20 destination countries.
Trends
The increased requests for stamped certificates of origin for goods going to the Netherlands reflects a general change we have seen. The increase is not connected to an increase in trade, like with India, and instead is linked to an increase in regulation.
Customs in European countries rarely would require chamber stamps on documents or extra processing. Starting in 2023 and accelerating in 2024, customs offices have increased requests. This is fueled by a growth in international fraud. This stems from exporters internationally trying to skirt sanctions or gain favorable treatment by customs. The situation is worsened by the ease at which an LLC can be registered, a convincing website put together, and even a social media presence artificially created to showcase a company as being genuine.
It’s not always customs putting forth the requirements today. Often, importers want to see extra paperwork and extra processing done for documentation to help legitimize who they are doing business with. For the first time in 2024, AWTCC saw regular requests from international buyers to help legitimize US businesses. Today, many buyers are returning to the tradition of using chambers of commerce to alleviate any concerns about the legitimacy of their potential suppliers.
For the first time, in 2024, we’ve also seen local chambers of commerce contacted by businesses which, upon review, AWTCC determined to be illegitimate. This comes as no surprise as requests increase. It shows the need for due diligence by all parties.
The International Chamber of Commerce (ICC) has reported similar trends around the world. Their FraudNet initiative continues to work with businesses in attempt to clean up international trade.
On the Horizon
2025 looks to be interesting for trade. We expect the chamber’s role to continue to expand, as there is no easy remedy for the international trade challenges we are seeing.
Just recently, we have begun to see customs crack down in countries with which the United States enjoys free trade agreements. We have seen the Mexican Tax Administration Service begin more regular audits for goods claimed as qualifying for USMCA.
Many US exporters appear to assume that exporting from the United States automatically qualifies you for a free trade agreement. The problem may have reached a boiling point, and we expect audits to be more common in 2025. To that effect, AWTCC is working on proactive partnerships to help US exporters and members in completing the form.
We’re Here to Help
AWTCC does have a designated USMCA template available upon request by emailing to register@awtcc.org. Chamber members can get assistance in completing the template. You can find more about chamber membership on our Exporter Membership page.
