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A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific industry. An industry trade association participates in public relations activities such as advertising, education, political donations, lobbying and publishing, but its focus is collaboration between companies. Associations may offer other services, such as producing conferences, networking or charitable events or offering classes or educational materials. Many associations are non-profit organizations governed by bylaws and directed by officers who are also members. In countries with a social market economy, the role of trade associations is often taken by employers' organizations, which also take a role in social dialogue.

Contents

1 Political influence 2 Publishing 3 Generic advertising

3.1 Ads to improve industry image 3.2 Ads to shape opinion on a specific issue

4 Controversy

4.1 Anti-competitive activity 4.2 Cartels

5 National and international trade associations

5.1 International 5.2 Africa 5.3 Canada 5.4 East Asia 5.5 Europe 5.6 India 5.7 United Kingdom 5.8 United States

6 Copyright trade groups 7 See also 8 References 9 Further reading

Political influence[edit] See also: Advocacy group One of the primary purposes of trade groups, particularly in the United States and to a similar but lesser extent elsewhere, is to attempt to influence public policy in a direction favorable to the group's members. It can take the form of contributions to the campaigns of political candidates and parties through Political Action Committees (PACs); contributions to "issue" campaigns not tied to a candidate or party; and lobbying legislators to support or oppose particular legislation. In addition, trade groups attempt to influence the activities of regulatory bodies.[citation needed] In the United States, direct contributions by PACs to candidates are required to be disclosed to the Federal Election Commission
Federal Election Commission
or state and local election overseers, are considered public information, and have registration requirements for lobbyists. Even so, it can sometimes be difficult to trace the funding for issue and non-electoral campaigns.[citation needed] Publishing[edit] Almost all trade associations are heavily involved in publishing activities in print and online. The main media published by trade associations are as follows:

Association website. The association's corporate website typically explains the association's aims and objectives, promotes the association's products and services, explains the benefits of membership to prospective members, and promotes members' businesses (for example, by means of an online listing of members and description of their businesses). Members newsletters or magazines. Whether produced in print or online, association newsletters and magazines contain news about the activities of the association, industry news and editorial features on topical issues. Some are exclusively distributed to members, while others are used to lobby lawmakers and regulators, and some are used to promote members' businesses to potential new customers. Printed membership directories and yearbooks. Larger trade associations publish membership directories and yearbooks to promote their association to opinion formers, lawmakers, regulators and other stakeholders. Such publications also help to promote members' businesses both to each other and to a wider audience. A typical membership directory contains profiles of each association member, a products and services guide, advertising from members, and editorial articles about the aims, objectives and activities of the association. The emphasis of association yearbooks on the other hand is on editorial features about the association itself and the association's industry.

The opportunity to be promoted in such media (whether by editorial or advertising) is often an important reason why companies join a trade association in the first place. Examples of larger trade associations that publish a comprehensive range of media include European Wind Energy Association
European Wind Energy Association
(EWEA), Association of British Travel Agents (ABTA) and the Confederation of British Industry
Industry
(CBI). Generic advertising[edit] Industry
Industry
trade groups sometimes produce advertisements, just as normal corporations do. However, whereas typical advertisements are for a specific corporate product, such as a specific brand of cheese or toilet paper, industry trade groups advertisements generally are targeted to promote the views of an entire industry. Ads to improve industry image[edit] These ads mention only the industry's products as a whole, painting them in a positive light in order to have the public form positive associations with that industry and its products. For example, in the USA the advertising campaign "Beef. It's what's for dinner" is used by the National Cattlemen's Beef Association
National Cattlemen's Beef Association
to promote a positive image of beef in the public consciousness. Ads to shape opinion on a specific issue[edit] These are adverts targeted at specific issues. For example, in the USA in the early 2000s the Motion Picture Association of America
Motion Picture Association of America
(MPAA) began running advertisements before films that advocate against movie piracy over the Internet. Controversy[edit] A common criticism of trade associations is that, while they are not per se "profit-making" organizations that claim to do valuable work which is ultimately for the public benefit, they are in reality fronts for price-fixing cartels and other subtle anti-competitive activities that are not in the public interest. Anti-competitive activity[edit] Jon Leibowitz, commissioner at the Federal Trade Commission
Federal Trade Commission
in the United States, outlined the potentially anti-competitive nature of some trade association activity in a speech to the American Bar Association in Washington, D.C. in March 2005 called “The Good, the Bad and the Ugly: Trade Associations and Antitrust”. For instance, he said, under the guise of "standard setting" trade associations representing the established players in an industry can set rules that make it harder for new companies to enter a market.[1] Cartels[edit] In September 2007, the German trade association for Fachverband Verbindungs- und Befestigungstechnik (VBT) and five fastener companies were fined 303 million euros by the European Commission
European Commission
for operating cartels in the markets for fasteners and attaching machines in Europe and worldwide. In one of the cartels, the YKK Group, Coats plc, the Prym group, the Scovill group, A. Raymond, Berning & Söhne agreed coordinated price increases in annual price rounds with respect to fasteners and their attaching machines, "in the framework of work circles organised by VBT".[2] National and international trade associations[edit] International[edit]

Master Inspector Certification Board for Certified Master Inspector (CMI) CINOA, International Confederation of Art and Antique Dealers' Associations, principal international art and antique dealers confederation eCommerce World Retailers Federation of International Trade Associations Industrial Rope Access Trade Association (IRATA), the principal industrial rope access trade association Industry
Industry
Technology Facilitator, an oil industry trade association International Air Transport Association International Association of Certified Home Inspectors (InterNACHI) International Chamber of Shipping, principal trade association of the international shipping industry International Fluid Power Society International Institute of Business
Business
Analysis (IIBA) International Marine Contractors Association (IMCA)

Africa[edit]

Hospitality Association of Namibia

Canada[edit]

Canadian Association of Petroleum Producers Canadian Beverage Association Canadian Federation of Independent Business Canadian Meat Council Canadian Nuclear Association Canadian Recording Industry
Industry
Association Utilities Technology Council of Canada

East Asia[edit]

Japan Automobile Manufacturers Association Korea Automobile Manufacturers Association

Europe[edit]

Airlines for Europe Centre for European Policy Studies Confederation of the Food and Drink Industries of the EU EFPIA European Regions Airline Association EUBINGO EUCOPE EUROMAT European Tool Association (CEO) European Chemical Industry
Industry
Council European Policy Centre Geode Petcore PLASA UEAPME Union of Industrial and Employers' Confederations of Europe EBAN EUnited - European Engineering Industries Association

India[edit]

All India Biotech Association Naroda Industries Association, Ahmedabad, India NASSCOM, National Association of Software and Services Companies CII, Confederation of Indian Industry Indian Tea Association

United Kingdom[edit] In the UK there are thought to be more than 1600 trade associations.[3] The term "industry trade group" is used very little in British English. Alternative terms used in the UK include trade association and employer association.

Agricultural Industries Confederation Anaerobic Digestion and Biogas Association (ADBA) Association of Newspaper and Magazine Wholesalers British Bankers Association
British Bankers Association
(BBA) Asbestos Testing and Consultancy Association (ATAC) Association of Air Ambulances Association of British Insurers Association of the British Pharmaceutical Industry British Compressed Air Society British Glass Confederation British Hospitality Association British Parking Association Building Engineering Services Association CompTIA, Computing Technology Industry
Industry
Association Confederation of Forest Industries Crop Protection Association Electrical Contractors' Association Electromagnetic Compatibility Industry
Industry
Association Fire Industry
Industry
Association Hire Association Europe International Entrepreneurs Association, UK Entrepreneurs Education Professional Body intellect, UK Technology Industry Internet Service Providers Association Lift and Escalator Industry
Industry
Association Maritime UK Master Locksmiths Association National Access and Scaffolding Confederation Nationwide Caterers Association National Federation of Builders National Federation of Demolition Contractors National Outsourcing Association Nuclear Industry
Industry
Association Oil & Gas UK Orthodontic Technicians Association SELECT ( Electrical Contractors' Association of Scotland) TheCityUK Walpole British Luxury UK Cleaning Products Industry
Industry
Association

United States[edit] Main article: List of industry trade groups in the United States See also: Chamber of commerce
Chamber of commerce
and Big Business There are over 7,600 national trade associations in the United States, with a large number (approximately 2,000) headquartered in the Washington, DC area.[4] There are also many trade associations at the state and local levels. One of the oldest trade associations in the United States is the American Seed Trade Association (ASTA), founded in 1883.[5] Copyright trade groups[edit]

IFPI, International Federation of Phonogram and Videogram Producers, represents the recording industry worldwide, with over 1450 members in 75 countries and affiliated industry associations in 48 countries. The IFPI works in partnership with similar national organizations.

Recording Industry
Industry
Association of America (RIAA) represents the recording industry in the United States. ASINCOL, the Colombian Association of Phonograph Producers, Colombian music industry association. Music Canada, formerly known as the Canadian Recording Industry Association is the non-profit trade organization representing the largest Canadian companies that create, manufacture and market sound recordings. Recording Industry
Industry
Association of New Zealand (RIANZ), non-profit trade association of producers and artists in New Zealand. Mexican Association of Producers of Phonograms and Videograms (AMPROFON)

Motion Picture Association of America
Motion Picture Association of America
(MPAA) represents the film industry in the United States. The Association of Japanese Animations (AJA), a group consisting of small to medium-sized intellectual property companies Business
Business
Software Alliance (BSA) promotes the intellectual property of software developers. Entertainment Software Association
Entertainment Software Association
(ESA) promotes the intellectual property of game developers in the United States. British Phonographic Industry
Industry
(BPI), UK music industry association. Founded the BRIT Awards, and give Gold, Silver and Platinum disks for UK-based sales. Federation Against Copyright Theft
Federation Against Copyright Theft
(FACT) is the main UK anti-copyright infringement organization, mainly for films. Australian Recording Industry
Industry
Association (ARIA), oversees the collection, administration and distribution of music licenses and royalties in Australia. Japanese Society for Rights of Authors, Composers and Publishers (JASRAC) Recording Industry
Industry
Association of Japan (RIAJ) Russian Organization for Multimedia and Digital Systems (ROMS) organization on collective management of rights of authors and other rightholders in multimedia, digital networks and visual arts Anti Video Piracy Association of Singapore (AVPAS) for anime. GEMA society for musical performing and mechanical reproduction rights in Germany.

See also[edit]

China Council for the Promotion of International Trade Guild Inter-professional association

References[edit]

^ Leibowitz, Jon (March 30, 2005). "The Good, the Bad and the Ugly: Trade Associations and Antitrust
Antitrust
(remarks to American Bar Association Antitrust
Antitrust
Spring Meeting, Washington, DC)" (PDF). Federal Trade Commission. Retrieved 2012-06-03.  ^ "Antitrust: Commission fines members of fasteners cartels over €303 million" (Press release). Europa.eu. Retrieved 2012-06-03.  ^ Boléat, Mark (2003). Managing Trade Associations (PDF). Trade Association Forum. ISBN 1-85580-034-9. Retrieved 2012-06-03.  ^ National Trade and Professional Associations (2008), 43rd ed., ISBN 978-1-880873-56-4 ^ "First-the Seed". The American Seed Trade Association. Retrieved June 13, 2009. 

Further reading[edit]

Garrelts, Frank: Märkte im Umbruch - Kooperationen als Chance im Handel (Markets on the move - trade associations as a business opportunity), München: Beck 1998, ISBN 3-406-43993-4 abstract in English available here [1] May, Clifford D. (August 3, 1988). "Washington Talk: Associations; Possum to Phlebotomy, They're All Spoken For". New York Times. Retrieved June 3, 2012. 

v t e

Business
Business
organizations

Types

Employers' organization Chamber of commerce Inter-professional association Trade association

List of food industry trade associations List of industry trade groups in the United States

Cooperative federation

Corporate groups

Chaebol
Chaebol
(South Korea) Conglomerate (Anglosphere) Keiretsu
Keiretsu
(Japan) Konzern (Germany) Xi (China) Zaibatsu
Zaibatsu
(Japan)

Oppositional groups

Trade union Consumer organization

See also

Bamboo network
Bamboo network
(Greater China and Southeast Asia) Business
Business
network Business
Business
networking Cartel Company registers Real Estate Hegemony (Hong Kong)

Authority control

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