3. he strength of the argument for FDI in the US and
Canada is increasing. The US economy has been
expandingnicelyrecently,withastreamofimproving
economic data reflecting positive momentum in
the world’s largest market. Meanwhile, Canada’s
rich resources, solid economic structure and economic prospects
remain an effective magnet for foreign investment. So, with the
world’s largest consumer market, skilled and productive workers,
a highly innovative environment, appropriate legal protections, and
a predictable regulatory environment, North America remains one
of the most attractive investment destinations for firms across the
globe.
The US offers investors extraordinary attractions and many
possible locations. The world’s largest recipient of foreign direct
investment (FDI) since 2006, it has a lucrative and open consumer
market of over 310 million people, as well as access via free
trade agreements to about 415 million more customers for goods
and services that are produced in the US. The work force is
well-educated, productive, innovative, and mobile. The US also has
^
T
INSIGHT’S NORTH AMERICAN FDI REPORT
SHINE ON
By: Henry Martin
New European Economy 97
INSIGHT
“THE US OFFERS
INVESTORS
EXTRAORDINARY
ATTRACTIONS AND
MANY POSSIBLE
LOCATIONS.”
a good university system, one that hosts and spins off many R&D
programs that contribute to the country’s strong entrepreneurial
activities. North of the border, Canada is one of the few countries
that has been bucking the trend in adding to its FDI stock in recent
years. In 2013, FDI inflows were up more than 40%, and recent
announcements of new projects bode well for future growth.
4.
5. New European Economy102
he Central Maine Growth Council (CMGC) has
established the Central Maine region as a logistics
hub between Boston, New York, Quebec, Maritimes
Canada and Europe. This effort revolved around
securing designation for Foreign Trade Zone (FTZ)
#186, located in Waterville and surrounding communities. The FTZ is
a critical step in regional development and is part of CMGC’s focus
on business attraction, expansion, and retention in value-added
industry sectors such as agriculture, medical services, precision
manufacturing, technology, energy and aviation.
CMGC works closely with the U.S. Foreign Trade Zones
Board and the City of Waterville in coordinating Zone activities,
promotion, and outreach, detailing the potential benefits and
economic incentives for companies located within the Zone that
engage in international business. Businesses active in the FTZ can
save millions of dollars and utilise those savings for research and
development, job creation, and business expansion. The Maine
ports of Belfast, Searsport, and Portland are uniquely and strate-
gically positioned in Trans-Atlantic shipping lanes, providing easy
access to international markets and further competitive edge for
active FTZ companies.
CMGC, in its efforts to promote foreign trade opportunities,
presented the International Trade Symposium: Growing Trade and
Global Outreach in Central Maine at Colby College on October
2nd 2013. This event brought experts and leaders from Maine
International Trade Center, TD Bank, American Global Logistics, FTZ
Networks and Atlantica Group, who imparted their knowledge of
imports/exports, foreign trade zones, international financial services,
international “soft landing” business incubators, and foreign
direct investment. Over seventy-five companies, organizations,
consulates, and governments attended the event, highlighting
Central Maine’s growing global trade and reach. The consensus
at the event verified the growing opportunities to connect with
international markets, including the benefits presented by the FTZ
for enterprise growth and expanded emphasis on foreign direct
investment for the region.
T
THE GATEWAY
TO NEW ENGLAND
INSIGHT
CENTRAL
MAINE
By: Darryl Sterling. Central Maine Growth Council
6. Darryl Sterling, Executive Director
50 Elm St., Waterville, ME, USA 04901
www.centralmaine.org
dsterling@centralmaine.org
1 (207) 680-7300
New European Economy 103
FTZ #186, commonly referred to as the Central Maine Region FTZ,
is bolstering economic activity while giving significant advantages
to companies dealing in import/export, valued-added assembly
and production, and those that require advanced supply chain
logistics. CMGC is partnered with Kennebec Regional Development
Authority-FirstPark (KRDA), which offers the region additional
capacity in support of foreign direct investment. KRDA-FirstPark is
a conduit for tax-exempt bond financing and has reach to an EB
5 platform for green card/US citizenship designation for company
principals/senior management teams. CMGC, in conjunction
with KRDA-FirstPark, serves as a single source point of contact
for project delivery including financing, technical assistance,
relocation services, et cetera. CMGC is also closely aligned with
Waterville’s LaFleur Airport, which is superbly positioned for growth
now that the area is a designated FTZ. Aviation enterprises have
recently opened at the airport and other connected businesses
are also beginning to cluster around the airport. The upcoming $8
million reconstruction of the airport’s main runway opens the return
of passenger service and a higher volume of jet traffic, further
incentivizing growth around the airport.
The FTZ provides benefits to businesses primarily in the form
of deferrals, reductions, and elimination of tariff and duty fees
if the goods are exported, regardless of the origin of the raw
materials. Additionally, it allows for more secure and agile inventory
movements, better Customs and Border Protection relations, and
reduced merchandise processing fees. Companies of various sizes
can realize these advantages, benefit from substantial cash flow
savings, and improve their bottom-line on the order of hundreds of
thousands to millions of dollars. According to NAFTZ, new Alternative
Site Framework (ASF) and Usage-Driven Sites account for the vast
majority of FTZ activities. The reorganization of the Central Maine
Region FTZ to ASF comes through collaboration with a number
of businesses, municipalities, and economic development organi-
zations. The ASF incorporates nine counties into the Central Maine
Region FTZ, making it a de facto “super zone,” providing greater
and geographically expanded FTZ benefits. The reorganized zone
also enables a rapid and streamlined designation process for new
business inclusion, expediting the application process to as little
as 30 days. The Central Maine Region FTZ serves as a gateway
to Canada and New England, and as a shipping intermediary for
countries on both sides of the Atlantic Ocean.
CMGC is strengthening the region’s global competitiveness
and expects to successfully capture more enterprise growth
opportunities from emerging international markets. This translates
to an increase in business investment for the region; putting the
area on the cusp of a logistical and manufacturing boom. Central
Maine’s economic outlook is bright, thanks to CMGC, its partners,
and the Central Maine Region Foreign Trade Zone.
