The World Is Open For Business.  Yours. An Overview of the  U.S. Commercial Service
Why Should You Export? <ul><li>95%   of the world’s consumers are outside of the U.S. </li></ul><ul><li>Exporting helps to...
Economic Impacts of Exporting  <ul><li>Exports help diversify the U.S. economy </li></ul><ul><li>U.S. manufactured exports...
Market Diversification <ul><li>Extend product life cycles </li></ul><ul><li>Counter unstable economic markets </li></ul><u...
Exporters Are Small Business 97%   of U.S. exporters are  SMEs with < 500 employees  75%  of exporters have < 20 employees...
Exports & Hawaii
Hawaii’s Top Exports Tourism Services Education & Training Environmental Technologies Cosmetics / Skin Care Agriculture & ...
Hawaii’s Top Exports Hawaii Exports Based on Origin of Movement HTS   Description   US Dollars   % Share   %Δ 08/07   2007...
Hawaii Export: Coffee Who is buying? Top Global Importers Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitute...
Hawaii Export: Coffee Where is U.S. coffee going? Top U.S. exports Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee S...
Hawaii Export: Coffee Where is Hawaii coffee going? Top HI exports Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee S...
Japan India Australia Malaysia China South Korea Hawaii’s Best Export Markets Hong Kong
Leveraging Free Trade Agreements
Free Trade Agreements <ul><li>FTAs help open foreign markets  </li></ul><ul><ul><li>Reduced trade barriers  (tariffs, quot...
Free Trade Agreements <ul><li>Topics of FTA Negotiations </li></ul><ul><li>Opening Sectors to Competition </li></ul><ul><l...
Free Trade Agreements
Free Trade Agreements ISRAEL JORDAN
Free Trade Agreements Country 2007 MMUSD 2008 MMUSD Percent Change NAFTA 332,499 353,931 6.45% Canada 213,118 222,424 4.40...
Free Trade Agreements <ul><li>U.S - Korea FTA, Pending </li></ul><ul><li>Model for new Asia FTAs </li></ul><ul><li>95% of ...
Going Global Connecting with International Markets
Are You Export Ready? <ul><li>Domestic Success? </li></ul><ul><li>Production Capacity? </li></ul><ul><li>Financial Resourc...
Common Export Mistakes <ul><li>Lack of Export Business Plan </li></ul><ul><li>Low commitment to exporting </li></ul><ul><l...
Determine Product Potential <ul><ul><li>Examine Domestic Market Success </li></ul></ul><ul><ul><li>Assess Unique or Import...
Develop An Export Strategy <ul><li>Be PRO-ACTIVE & REALISTIC  about your ability to expand </li></ul><ul><li>Define your r...
Basic Guide to Exporting <ul><li>How to identify the best markets </li></ul><ul><li>Financing export transactions  </li></...
An Overview of the  U.S. Commercial Service How the U.S. Government Can Help
U.S. Commercial Service Creating Prosperity Through Global Trade  <ul><li>A  global network  in more than 80 countries  of...
Our Services <ul><li>Four Ways to Grow Your International Sales </li></ul><ul><li>  Market Research </li></ul><ul><li>  </...
Our Services: Market Research <ul><li>Market Research Library  (FREE)  – over 100,000 country and industry-specific market...
Our Services: Trade Events <ul><li>Trade Missions  – face-to-face meetings with  pre-screened partners, country briefings,...
Our Services: Find a Partner <ul><li>Gold Key Service  – one-on-one meetings with  pre-screened contacts in your desired m...
Our Services: Consulting <ul><li>Counseling  – your local office that can help you with your export strategy and obtaining...
Leverage Our Additional Resources <ul><li>www.Export.gov  – Your U.S. Trade Portal </li></ul><ul><li>Export basics, market...
Note: A small company is defined as employing 500 employees or less. Fees vary for Trade Missions, Single Company Promotio...
Our Strategic Partners <ul><li>Our Partners help you export by:  </li></ul><ul><li>Conducting joint outreach events </li><...
What Our Clients Have To Say… <ul><li>“ Using the U.S. Commercial Service’s foreign market research, we now export to more...
Mahalo! John Holman, Director Hawaii Export Assistance Center www.buyusa.gov/hawaii  808.522.8040 or  808.522.8041 www.exp...
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Export 101

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  • There is no better time to export. 95% - which accounts for over 70% of the world’s purchasing power So if a U.S. business is only selling domestically, they are reaching just a small share of potential customers.
  • International PLC
  • 51% U.S. Content
  • Export 101

    1. 1. The World Is Open For Business. Yours. An Overview of the U.S. Commercial Service
    2. 2. Why Should You Export? <ul><li>95% of the world’s consumers are outside of the U.S. </li></ul><ul><li>Exporting helps to diversify your client base </li></ul><ul><li>and take advantage of regional growth </li></ul><ul><li>If you are not exporting, it’s highly likely your </li></ul><ul><li>competitors are selling abroad or will be soon </li></ul><ul><li>Free trade agreements, the Internet, improved </li></ul><ul><li>transportation, and Government assistance </li></ul>
    3. 3. Economic Impacts of Exporting <ul><li>Exports help diversify the U.S. economy </li></ul><ul><li>U.S. manufactured exports support 6,000,000 American jobs </li></ul><ul><li>Trade generates $9,000 more in purchasing power for the average American family </li></ul><ul><li>Companies that export are 8.5% less likely to go out of business </li></ul><ul><li>Jobs related to exports pay 15% more </li></ul>
    4. 4. Market Diversification <ul><li>Extend product life cycles </li></ul><ul><li>Counter unstable economic markets </li></ul><ul><li>Ability to maintain production year-round </li></ul><ul><ul><li>Seasonal differences </li></ul></ul><ul><ul><li>Consistent sales </li></ul></ul>
    5. 5. Exporters Are Small Business 97% of U.S. exporters are SMEs with < 500 employees 75% of exporters have < 20 employees 7 in 10 new U.S. jobs are created by small businesses
    6. 6. Exports & Hawaii
    7. 7. Hawaii’s Top Exports Tourism Services Education & Training Environmental Technologies Cosmetics / Skin Care Agriculture & Processed Foods
    8. 8. Hawaii’s Top Exports Hawaii Exports Based on Origin of Movement HTS Description US Dollars % Share %Δ 08/07 2007 2008 2007 2008 2008/2007 22 Beverages 42,204,853 37,569,727 7.54 3.9 -10.98 18 Cocoa 15,944,232 16,599,114 2.85 1.72 4.11 9 Spices/Coffee And Tea 7,304,677 7,018,267 1.3 0.73 -3.92 76 Aluminum 7,361,090 6,900,668 1.31 0.72 -6.25 12 Misc Grain/Seed/Fruit 3,805,825 5,133,636 0.68 0.53 34.89 20 Preserved Food 4,553,234 5,068,279 0.81 0.53 11.31 10 Cereals 1,486,206 3,281,321 0.27 0.34 120.79 42 Leathr Art;Saddlry;Bags 2,862,885 2,978,381 0.51 0.31 4.03 95 Toys And Sports Equipmt 2,413,336 2,872,111 0.43 0.3 19.01 33 Perfumery/Cosmetic/Etc 2,720,209 2,654,592 0.49 0.28 -2.41 93 Arms And Ammunition 5,645,967 1,850,516 1.01 0.19 -67.22 30 Pharmaceutical Products 1,852,556 1,761,063 0.33 0.18 -4.94 91 Clocks And Watches 1,010,997 1,681,710 0.18 0.17 66.34 92 Musical Instruments 2,648,193 1,633,804 0.47 0.17 -38.3
    9. 9. Hawaii Export: Coffee Who is buying? Top Global Importers Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes Rank Reporting Country United States Dollars 2006 2007 Reporting Total 14,297,492,235 17,053,983,357 1 Germany 2,346,555,380 2,780,324,135 2 France 922,715,741 1,135,345,616 3 Italy 871,668,372 1,091,582,381 4 Japan 990,582,099 1,007,536,566 5 Belgium 576,881,197 616,942,661 6 Canada 633,235,711 681,828,070 7 Spain 485,158,540 615,529,732 8 United Kingdom 420,201,477 481,947,242 9 Switzerland 252,695,531 326,401,485 10 Austria 267,985,342 386,423,340
    10. 10. Hawaii Export: Coffee Where is U.S. coffee going? Top U.S. exports Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes Ranking Partner Country US Dollar % Change 2007 2008 2008/2007 World 544,540,906 617,324,345 13.37 1 Canada 402,913,519 455,420,320 13.03 2 Japan 44,294,196 55,704,640 25.76 3 Russia 233,570 23,024,121 9757.48 4 Singapore 11,451,807 13,562,164 18.43 5 China 10,656,153 13,014,006 22.13 6 Germany 35,747,261 12,714,003 -64.43 7 South Korea 5,923,339 9,627,450 62.53 8 Mexico 3,355,982 5,678,248 69.2 9 Taiwan 1,996,288 3,645,264 82.6 10 Bermuda 1,581,979 1,694,163 7.09
    11. 11. Hawaii Export: Coffee Where is Hawaii coffee going? Top HI exports Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes     US Dollar % Change Rank Country 2007 2008 2008/2007 World 7,117,465 6,966,482 -2.12 1 Japan 5,530,968 5,050,100 -8.69 2 Sweden 1,212,584 1,244,283 2.61 3 Canada 91,023 317,836 249.18 4 Germany 204,835 249,702 21.9 5 South Korea 28,838 49,679 72.27 6 United Kingdom 0 18,000 0 7 Taiwan 32,901 10,169 -69.09 8 Australia 12,566 10,112 -19.53 9 Finland 0 9,277 0 10 France 0 4,800 0
    12. 12. Japan India Australia Malaysia China South Korea Hawaii’s Best Export Markets Hong Kong
    13. 13. Leveraging Free Trade Agreements
    14. 14. Free Trade Agreements <ul><li>FTAs help open foreign markets </li></ul><ul><ul><li>Reduced trade barriers (tariffs, quotas, etc.) </li></ul></ul><ul><ul><li>Strengthen legal protections </li></ul></ul><ul><li>Promote fair competition </li></ul><ul><li>Address trade issues </li></ul><ul><li>Bring costs down for U.S. consumers </li></ul>
    15. 15. Free Trade Agreements <ul><li>Topics of FTA Negotiations </li></ul><ul><li>Opening Sectors to Competition </li></ul><ul><li>Improving IPR Protections </li></ul><ul><li>Enhancing Labor Rights </li></ul><ul><li>Dispute Settlement </li></ul><ul><li>Environmental Standards </li></ul><ul><li>Government Procurement </li></ul><ul><li>Enhancing Investment Rules </li></ul><ul><li>Improving Customs Facilitation </li></ul>
    16. 16. Free Trade Agreements
    17. 17. Free Trade Agreements ISRAEL JORDAN
    18. 18. Free Trade Agreements Country 2007 MMUSD 2008 MMUSD Percent Change NAFTA 332,499 353,931 6.45% Canada 213,118 222,424 4.40% Mexico 119,381 131,507 10.20% CAFTA-DR 21,274 23,922 12.45% Costa Rica 4,224 5,047 19.50% Dominican Rep 5,793 6,293 8.60% Guatemala 3,872 4,493 16.00% Honduras 4,327 4,699 8.60% Nicaragua 846 1,030 21.70% El Salvador 2,209 2,357 6.70% Australia 17,916 20,948 16.90% Bahrain 565 779 37.80% Chile 7,610 11,366 49.40% Israel 9,940 10,238 3.00% Jordan 831 904 8.70% Morocco 1,333 1,506 12.90% Oman 1,034 1,380 33.40% Peru 3,764 5,686 51.10% Singapore 23,576 25,655 8.80% Total 420,348 456,319 8.60%
    19. 19. Free Trade Agreements <ul><li>U.S - Korea FTA, Pending </li></ul><ul><li>Model for new Asia FTAs </li></ul><ul><li>95% of U.S. consumer & industrial products will enter duty-free </li></ul><ul><li>67% of agricultural exports will be immediately duty-free </li></ul><ul><li>Remaining tariffs eliminated <10 years </li></ul><ul><li>Hawaii: agricultural / food products, tourism </li></ul>
    20. 20. Going Global Connecting with International Markets
    21. 21. Are You Export Ready? <ul><li>Domestic Success? </li></ul><ul><li>Production Capacity? </li></ul><ul><li>Financial Resources? </li></ul><ul><li>Management Commitment? </li></ul><ul><li>International Plan with Goals? </li></ul><ul><li>Know-how? (shipping & methods of payment) </li></ul>
    22. 22. Common Export Mistakes <ul><li>Lack of Export Business Plan </li></ul><ul><li>Low commitment to exporting </li></ul><ul><li>Neglecting export customers for local customers </li></ul><ul><li>Reliance on inadequate partnerships </li></ul><ul><li>Failure to modify products & methods to accommodate foreign regulations and preferences </li></ul>
    23. 23. Determine Product Potential <ul><ul><li>Examine Domestic Market Success </li></ul></ul><ul><ul><li>Assess Unique or Important Product Features </li></ul></ul><ul><ul><li>International Market Research </li></ul></ul><ul><ul><li>Where are International Hits Coming from on your Website? Target markets? </li></ul></ul><ul><ul><li>Where are Your Competitors Selling? </li></ul></ul>
    24. 24. Develop An Export Strategy <ul><li>Be PRO-ACTIVE & REALISTIC about your ability to expand </li></ul><ul><li>Define your resource limitations (money, personnel, and time) </li></ul><ul><li>Identify a few target markets </li></ul><ul><li>Evaluate target markets, customers, distribution channels </li></ul><ul><li>Evaluate future profits & opportunities to expand business </li></ul><ul><li>Develop an entry strategy for each market </li></ul>Focus Your Efforts!
    25. 25. Basic Guide to Exporting <ul><li>How to identify the best markets </li></ul><ul><li>Financing export transactions </li></ul><ul><li>Best methods to handle orders and shipments </li></ul><ul><li>Case studies of successes </li></ul><ul><li>Sources of free or low-cost export counseling </li></ul><ul><li>$19.95 online @ www.export.gov </li></ul>
    26. 26. An Overview of the U.S. Commercial Service How the U.S. Government Can Help
    27. 27. U.S. Commercial Service Creating Prosperity Through Global Trade <ul><li>A global network in more than 80 countries of the best trade professionals in the world </li></ul><ul><li>Our global presence and international marketing expertise helps U.S. companies compete & win in global markets </li></ul><ul><li>Our Goal - promote economic prosperity, enhance job creation, and protect U.S. commercial interests abroad </li></ul>
    28. 28. Our Services <ul><li>Four Ways to Grow Your International Sales </li></ul><ul><li> Market Research </li></ul><ul><li> </li></ul><ul><li> Trade Events </li></ul><ul><li> International Partners </li></ul><ul><li> Consulting & Advocacy </li></ul>
    29. 29. Our Services: Market Research <ul><li>Market Research Library (FREE) – over 100,000 country and industry-specific market reports, web sites, events, and trade directory listings </li></ul><ul><li>Country Commercial Guides (FREE) – annual U.S. Embassy reports on the business, economic, and political environment as it affects U.S. business and foreign investments </li></ul><ul><li>Customized Market Research – personalized report prepared specifically for your company with information that answers your specific international business questions </li></ul><ul><li>* Find these reports and more at www.export.gov </li></ul>Target the Best Markets with Our World Class Research
    30. 30. Our Services: Trade Events <ul><li>Trade Missions – face-to-face meetings with pre-screened partners, country briefings, logistical support, and counseling </li></ul><ul><li>International Buyer Program – brings thousands of foreign buyers to U.S. trade shows each year </li></ul><ul><li>Certified Trade Fairs – the best international trade shows with access to thousands of buyers and pre-screened matching </li></ul><ul><li>Single Company Promotion – pre-screened invitations to help you promote your products/services </li></ul>Promote Your Product or Service to Pre-Screened Buyers
    31. 31. Our Services: Find a Partner <ul><li>Gold Key Service – one-on-one meetings with pre-screened contacts in your desired market </li></ul><ul><li>International Partner Search – a detailed list of potential partners interested in your product/service </li></ul><ul><li>International Company Profile – low-cost due diligence and credit check on buyers & distributors </li></ul><ul><li>Featured U.S. Exporter (FUSE) – on-line listing featuring your company in the market of your choice </li></ul><ul><li>Commercial News USA – official U.S. trade magazine that promotes your product or service to over 400,000 international buyers </li></ul>Meet the Best Buyers, Distributors, and Agents
    32. 32. Our Services: Consulting <ul><li>Counseling – your local office that can help you with your export strategy and obtaining financing </li></ul><ul><li>Resolve Trade Issues – we can help resolve regulatory hurdles and recover payment </li></ul><ul><li>Platinum Key Service – customized, long-term support to help you achieve your business goals </li></ul><ul><li>Advocacy – U.S. diplomatic assistance to help level the playing field for your business </li></ul>Get Personalized Advice at Every Stage of Exporting
    33. 33. Leverage Our Additional Resources <ul><li>www.Export.gov – Your U.S. Trade Portal </li></ul><ul><li>Export basics, market research, HS & schedule B numbers </li></ul><ul><li>Information on international finance, logistics, and standards </li></ul><ul><li>www.Export-U.com – FREE export tutorials </li></ul><ul><li>Trade Information Center - 1.800.USA.TRADE </li></ul><ul><li>Open Monday through Friday until 6pm EST / 12pm Hawaii time </li></ul><ul><li>Get immediate answers to your trade questions </li></ul><ul><li>Information on tariffs & duties, customs procedures, legal requirements and standards, government assistance programs </li></ul><ul><li>Business Information Centers </li></ul><ul><li>China: www.export.gov/china </li></ul><ul><li>India: www.export.gov/india </li></ul><ul><li>Middle East / North Africa: www.export.gov/middleeast </li></ul>
    34. 34. Note: A small company is defined as employing 500 employees or less. Fees vary for Trade Missions, Single Company Promotions, and the Platinum Key Service. Cost of Services Our Services Small Company New Exporter Discount Large Company Local Counseling FREE FREE FREE Market Research Reports FREE FREE FREE Country Commercial Guides FREE FREE FREE Export.gov Information FREE FREE FREE 1.800.USA.TRADE FREE FREE FREE Gold Key (Matchmaking) $700 $350 $2,300 International Company Profile (Due Diligence) $600 $350 $900 International Partner Search (Prequalified contacts) $550 $350 $1,400 Featured U.S. Exporter (Overseas web promotion) $150 $75 $300 Commercial News USA (global print advertising) www.thinkglobal.us/advertiser/rates.php
    35. 35. Our Strategic Partners <ul><li>Our Partners help you export by: </li></ul><ul><li>Conducting joint outreach events </li></ul><ul><li>Leveraging training and education </li></ul><ul><li>Reaching exporters through communication and marketing </li></ul><ul><li>Leading trade missions </li></ul><ul><li>Providing global contacts </li></ul>
    36. 36. What Our Clients Have To Say… <ul><li>“ Using the U.S. Commercial Service’s foreign market research, we now export to more than 70 countries and have received a presidential award for our export success.” </li></ul><ul><ul><ul><ul><ul><li> Ampro Electronics, Los Angeles, CA </li></ul></ul></ul></ul></ul><ul><li>“ Trade shows supported by the U.S. Commercial Service are a great way to reach the right foreign buyers.” </li></ul><ul><li> Artcrete, Natchitoches, LA </li></ul><ul><li>“ Thanks to support from trade specialists at the U.S. Embassy, we not only saved jobs, but continue to increase our exports.” </li></ul><ul><li> Ford Meter Box, Wabash, IN </li></ul><ul><li>“ In only six months, local trade specialists helped me get quality distributors covering 13 foreign markets.” </li></ul><ul><li> Excel Holdings, Leesburg, VA </li></ul>
    37. 37. Mahalo! John Holman, Director Hawaii Export Assistance Center www.buyusa.gov/hawaii 808.522.8040 or 808.522.8041 www.export.gov 1.800.USA.TRADE
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