Archive for the ‘Look South’ Category

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Soaring Energy Demand Means Opportunities for U.S. Companies in Latin America

September 24, 2014

Marjorie Baker recently completed a summer internship with the International Trade Administration’s Office of the Western Hemisphere.

Register now for discover: the Americas

Energy consumption in Latin America is expected to more than double between 2010 and 2013.

More Latin Americans than ever are now members of the middle class, and sustained economic growth in the region has led to increased demand for energy.

Energy consumption is projected to more than double in Latin America between 2010 and 2030, and this will transform the continent’s energy sector, creating new opportunities for U.S. companies.

As part of the federal government’s Look South initiative, the International Trade Administration (ITA) has published a series of best prospect sector reports for our 11 Free Trade Agreement partners in Latin America (Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, and Peru).

Our on-the-ground experts have identified the following countries as especially attractive for U.S. energy sector exporters:

We are also leading several U.S. companies on a renewable energy trade mission to Peru in November, and we look forward to new opportunities and new business deals as a result of that mission.

The energy sectors of these countries face challenges in terms of generating, distributing, and transmitting power, and that means there are a wide variety of opportunities for U.S. companies.

One way to learn about these opportunities and how to take advantage of them is at the upcoming DISCOVER GLOBAL MARKETS: The Americas forum in Charlotte, N.C., Oct. 29-31.

Register now for discover: the Americas

This forum will be the premier international business conference for U.S. executives to explore new market development strategies in the Americas, featuring:

  • One-on-one appointments with a buying delegation from Mexico;
  • Opportunities to meet with commercial diplomats who work in these markets every day; and
  • A breakout session focusing specifically on energy opportunities across the hemisphere.

We hope to see many U.S. companies taking advantage of the promising opportunities in Latin America!

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Find Export Opportunities in the Automotive Parts Industry!

September 3, 2014

Kellie Holloway is a Senior International Trade Specialist based in Portland, Oregon, and Member of the Commercial Service’s Global Automotive Team.

image of machinery working on an auto frame

More than one-third of U.S. auto parts exports went to Mexico in 2013. Automotive Meetings 2015 will connect more U.S. suppliers to prime export opportunities in the Mexican market!

One great thing about trade is that it presents opportunities for growth and success for companies in all industries throughout the world.

That’s readily apparent in the automotive industry, where growth in exports throughout North America is creating opportunity for businesses across the continent.

In the United States, auto parts manufacturers achieved $77.5 billion in exports in 2013, and more than a third of those exports – $26.6 billion – went to Mexico. That is a 9.2 percent increase from 2012, and it is a result of Mexico’s continued growth as one of the world’s top five auto exporters.

As Mexico’s automotive exports continue to grow, they will need more and more quality American-made parts fueling their auto manufacturing supply chain, and we at the International Trade Administration want to help form connections between Mexico’s top producers and the most high-quality suppliers in the United States.

One way we’ll support those connections is through the Automotive Meetings event in Queretaro, Mexico February 23-25, 2015. We will connect American suppliers directly to procurement, supply chain, and engineering teams from some of the top vehicle production sites in Mexico.

This could be a great event for any U.S. auto company looking to expand its exports!

To better serve our U.S. clients, we are also hosting two free webinars in advance of the Automotive Meetings event, which will help you learn more about the event in Queretaro, and how to best take advantage of it. The next webinar is Nov. 4, 2014.

auto webinar

U.S. auto exports support thousands of jobs throughout the country, and our team is committed to helping more and more businesses find success in exporting.

If your auto parts company is ready to start exporting, follow our team at @cs_autoteam, visit your nearest Export Assistance Center, or find more information about our services on our website.

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Automotive Exports to Latin American Free Trade Agreement Partners on the Rise

August 14, 2014

Leif Anderson recently completed an internship in the International Trade Administration’s Office for Export Policy, Promotion, and Strategy.

The DISCOVER GLOBAL MARKETS: Free Trade Agreements Conference in Detroit will be a premier event for any business looking to expand exports in free trade markets.

This is especially true for U.S. auto exporters who are looking for new opportunities in increasingly attractive free trade markets in Latin America.

Mexico is the largest growing U.S. auto/auto parts export market in the world, with growth of $8.2 billion from 2009 to 2013 – that’s a 13 percent annual increase.

Mexico recently passed Brazil as the top Latin American car producer, increasing demand for automobile parts from the United States.

Robots In a Car Factory

The DISCOVER: Free Trade Agreements forum will be a great event for U.S. auto exporters.

Auto parts/supplies exports to other Latin American markets have also grown since 2009:

  • Chile – 15.3 percent,
  • Colombia – 14.7 percent,
  • Peru – 16.2 percent,
  • Dominican Republic – 10 percent, and
  • Panama – 9.2 percent.

This growth can be largely attributed to strengthening free trade agreements in the region which have reduced or eliminated most import taxes on U.S. products. These markets also have vibrant middle classes and industrial demand.

The DISCOVER: Free Trade Agreements event will be a great event for U.S. auto exporters looking to expand in these markets.

The event features insights from some of the most successful exporters in the industry, including:

  • Mustafa Mohatarem, Chief Economist at General Motors, and
  • Michael S. Sheridan, Director of Global Trade Strategy with the Ford Motor Company.

The Federal Government is also supporting U.S. exporters expanding into Latin American free trade markets through the Look South campaign.

Businesses can find best prospect automotive industry market snapshots cutting across eight of our eleven Look South free trade agreement partner countries – along with similar market research on 20-plus industry sectors.

Looking forward, growing demand and fewer trade barriers have made this region an ideal destination for any the products of any U.S. business. We encourage you to start taking advantage of this great opportunity.

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Bigger than Meets the Eye: Look South to Chile!

July 29, 2014

Olivia Kantor recently completed an internship in the International Trade Administration’s Office of South America.

A long, narrow country in South America with a relatively small population of 18 million, Chile may not be the first country that comes to mind when considering export markets.

However, Chile’s dynamic economic growth, open markets, and world-class industries make it an attractive option for U.S. companies looking to sell their product abroad.

Chile is the United States’ fourth-largest trading partner in Latin America, and U.S. exports to Chile reached $17.6 billion in 2013. Trade with the country has increased nearly six-fold since the establishment of the U.S.-Chile Free Trade Agreement.

Several key industries in Chile have produced growing markets for U.S. goods and unique opportunities for business investment:

  • Electrical Power Equipment: Chile has the highest energy costs in South America. Efficient, affordable energy sources are at a premium as the Chilean economy continues to expand. Between 2013 and 2020, growth rates of 6 to 7 percent are projected for electricity consumption in Chile, and an estimated $20 billion of foreign investment and electrical power equipment will be needed to complete a variety of energy generation and transmission projects. Additionally, Chile plans to invest in many forms of renewable energy, making it an ideal market for U.S. manufacturers in that industry.
  • Construction: Driven by energy projects and investment in the Chilean mining industry, construction in Chile has grown at record rates. Construction within the mining industry alone is expected to total $50 billion during the next several years. With little construction equipment produced domestically, Chile relies on high-quality machinery from the United States. That puts U.S. businesses in an ideal position to take advantage of the wave of new construction projects, particularly in infrastructure and housing.
  • Agricultural Machinery and Equipment: Chile’s export-driven agricultural industry is looking to boost productivity and efficiency, providing a unique opportunity to U.S. exporters of specialized and energy efficient agricultural machinery. Continued demand for sophisticated agricultural machinery is expected to grow 7 to 8 percent through 2015. Demand is especially high for harvesting machinery, irrigation infrastructure, and precision agriculture equipment.

Many other Chilean industries also offer significant opportunities for U.S. exporters. You can find a complete list of best prospect sectors for Chile in the Country Commercial Guide.  The US- Chile Free Trade Agreement allows U.S. firms to export with fewer barriers than many other markets. In addition, Chile continues to strengthen its commitment to liberalizing trade as a founding member of both the Trans-Pacific Partnership and the Pacific Alliance.

If your company is interested in learning more about doing business in the Chilean market, the Look South initiative offers a number of services to help U.S. businesses capitalize on these exciting opportunities, from business matchmaking to trade counseling.

There are also a number of events for companies eager to start making connections in Chile and beyond.

Contact your nearest Export Assistance Center to learn more about how you can take advantage of opportunities in Chile and 11 U.S. free trade agreement partner countries in Latin America!

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USTR Highlights Trade Opportunities for Small Businesses in Chile and Peru

June 26, 2014
From L to R: Peru’s Ministerial Office Cabinet Advisor Carmen Bedoya Eyzaguirre, Peru’s Vice Minister of SMEs and Industry Sandra Doig Diaz,  USTR’s Christina Sevilla, Peru’s Vice-Ministerial Office Advisory Maggy Manrique Petrera, Director of Innovation Alejandro Bernaola Cabrera, and US Embassy in Lima Economic Officer Peter Lee

From L to R: Peru’s Ministerial Office Cabinet Advisor Carmen Bedoya Eyzaguirre, Peru’s Vice Minister of SMEs and Industry Sandra Doig Diaz, USTR’s Christina Sevilla, Peru’s Vice-Ministerial Office Advisory Maggy Manrique Petrera, Director of Innovation Alejandro Bernaola Cabrera, and US Embassy in Lima Economic Officer Peter Lee

This post originally appeared on the blog for the Office of the U.S. Trade Representative.

Deputy Assistant U.S. Trade Representative for Small Business Christina Sevilla convened Small and Medium Enterprise (SME) Working Groups with Chile and Peru to discuss cooperation through the Obama Administration’s Small Business Network of the Americas, which links U.S. Small Business Development Centers (SBDCs) with counterpart centers in countries throughout the Hemisphere to expand trade opportunities, share best practices in SME development, and help more small businesses take advantage of U.S. trade agreements. As President Obama has stated, the United States is going to “focus more on small and medium-sized businesses, on women’s businesses, making sure that the benefits of trade don’t just go to the largest companies but also to the smaller entrepreneurs and business people.”

In Santiago, USTR welcomed the decision of the Bachelet Administration to establish 50 SBDCs based on the U.S. model throughout Chile, in order to promote inclusive growth and strengthen our respective countries ties in the SME sector. In June, a delegation from Chile will visit U.S. SBDCs at Howard University in Washington DC, George Mason University in Fairfax, VA and University of Texas at San Antonio, TX. The United States and Chile also discussed ways to promote trade by minority-owned small businesses and will develop an online webinar with the U.S. Hispanic Chamber of Commerce through the Administration’s Look South initiative.

In Lima, Sevilla met with Vice Minister of SMEs Sandra Doig Diaz, and congratulated Peru on the recent completion of training in the U.S. SBDC model and the Ministry of Production’s decision to establish pilot SBDCs in Peru in 2015. Peru intends to partner with U.S. SBDCs and their SME clients to expand opportunities under the trade agreement. The US and Peru also discussed efforts to empower women-owned businesses through the public-private partnerships under the Women’s Entrepreneurship in the America’s initiative.

The U.S. also discussed expanded regional opportunities for SMEs with Chile and Peru through the Trans-Pacific Partnership agreement that is currently being negotiated.  The United States, Chile and Peru are three of the 12 countries in the TPP.

To learn more about the Trans-Pacific Partnership, please visit http://www.ustr.gov/tpp.

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Taking Advantage of Business Opportunities in Colombia

June 25, 2014

This post originally appeared on the U.S. Minority Business Development Agency blog.

George Mui is the Access to Markets team lead in MBDA’s Office of Business Development.

Aerial view of a city in ColombiaThe U.S. Department of Commerce, through its Look South campaign, helps U.S. exporters to expand their markets and identify new opportunities in Latin America. U.S. goods exports to Peru, Panama, Mexico, and Colombia have increased every year since 2009. As we celebrate the second year anniversary of the U.S.-Colombia Free Trade Agreement more American companies are exporting goods and services to Colombia, the vast majority of which are duty-free. The U.S.-Colombia Free Trade Agreement is just one of the11 free trade agreements between the United States and Latin American countries.

That’s why MBDA San Antonio Business Center director Orestes Hubbard and MBDA Global Business Center project manager David Leister visited Colombia along with an MBDA Global Business Center client, Carlos Silva, CEO of USATEQ, a Colombian native.

MBDA San Antonio director Orestes Hubbard shared his experience with George Mui, MBDA’s Access to Markets team lead in the Office of Business Development.

Mui: Why did you choose to travel to Colombia?

Hubbard: Colombia has a very advantageous geography and is roughly twice the size of the state of Texas – where I live. Colombia is also the only country in South America with access to both the Atlantic and Pacific Oceans and has long had good diplomatic and trade relations with the United States.

Mui: What was the purpose of your trip?

Hubbard: The purpose of the trip was to make contacts and identify concrete and tangible contracting opportunities for not only our center clients, but also opportunities for minority-owned businesses across the nation. We visited the two largest cities and major centers of commerce and industry, Bogota and Medellin.

Mui: You found some impressive opportunities – can you highlight a few of the industries?

Hubbard: In total, we discovered over $30 billion of business opportunities. There are private sector opportunities for U.S. construction and engineering companies looking for potential partners on infrastructure projects. The Colombian government has a number of opportunities in the renewable energy, highway, and railway industries. Colombia is the third ranked automobile manufacturer in Latin America, which creates significant opportunities for manufactured products, preferably automotive-related. For more information on opportunities in Colombia I recommend businesses visit the best prospect sectors for Look South countries.

Mui: An MBDA Global Business Center client was part of the trip to Colombia – what was the client’s impact?

Hubbard: Inviting a Colombian-American client from Medellin proved invaluable as Mr. Silva was able to make key government and private sector introductions, particularly in the areas of construction, renewable energies and automotive supply chain in Colombia.

Mui: What were your key takeaways?

Hubbard: Our trip confirmed what most trade reports declare, that Colombia is open for business and the stigma of the drug cartels and vast conflict with the Fuerzas Armadas Revolucionarias de Colombia (FARC) are things of the past. The main challenges appear to deal with traffic snafus and the need for the Colombian government to continue its admirable commitment toward growing the middle class.

However, it must be noted that fluency in Spanish is essential to having success in Colombia. This applies not only to the obvious case of setting up a local facility, but also when engaging a market representative. It is important that a good knowledge of Spanish is available in-house in the United States operations.

Mui: Can you discuss on-the-ground resources available to help minority-owned firms?

Hubbard: We cannot emphasize enough the invaluable role the U.S. Commercial Service in Colombia plays in assisting MBDA clients get into the Colombian market. We met with senior commercial officer Cameron Werker, foreign commercial officer Aaron Held, and a Colombian national market specialist, all of whom were very helpful in sharing information and resources pertaining to helping U.S. companies successfully enter the Colombian market.

This was an excellent collaborative meeting in which we gained critical insight into the Colombian economy and political workings. We mutually agreed that after registering with the local United States Export Assistance Center in the United States, all minority business enterprise clients interested in doing business in Colombia would be promptly referred to U.S. Commercial Service in Colombia to obtain market intelligence and critical introductions to events and contacts.

All in all, we came away impressed with the seeming transparency and relative ease of starting up a company, pulling in on-the-ground resources in Colombia from both the U.S. Embassy, as well as local Colombian trade and investment vehicles.

Mui: What advice do you have for U.S. companies thinking about exporting?

Hubbard: For minority-owned firms who want to learn about global business, and believe your product or service can be sold abroad, your first stop should be an MBDA Business Center. Contact Orestes Hubbard, director of the MBDA San Antonio Business Center at orestes.hubbard@utsa.edu or 210-458-2480.

MBDA supports the Look South campaign with a successful business exploration trip to Colombia. As a result, more than $30 billion of global contract opportunities were identified in both private and public sectors. Additionally, the MBDA Global Business Center also identified key strategic partners, such as the American Chamber of Commerce and ProExport Colombia. We look forward to bringing you more insights from Colombia.

MBDA and ITA have pledged a memorandum of understanding through January, 2016 that provides assistance to minority companies to develop their export potential through increased awareness and use of existing ITA products and services; increase ITA and MBDA cooperation at the regional and district office/local level, especially in regard to export counseling and trade finance training for minority firms.

 

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The Look South Slice of the Export Pie Continues to Grow

May 29, 2014

John Larsen is the Deputy Director of the Trade Promotion Coordinating Committee Secretariat.

The Look South campaign is encouraging companies to seek export opportunities in Latin America.Department of Commerce data show that U.S. goods and services exports set a record for the fourth consecutive year, reaching $2.3 trillion in 2013.

U.S. companies that export to our 11 free trade agreement partner countries in Latin America played a major role in this success. Through the Look South campaign, federal trade-promotion agencies hope to help more companies find success by taking advantage of these free trade agreements.

In 2013, U.S. goods exports to Look South markets increased $12.5 billion to $312.6 billion – more than double the 1.7 percent rate of growth for goods exports to the rest of the world.

This isn’t just a blip; we see a clear growth trend as market liberalization, growing middle class consumption, and diversifying industrialization by Latin American markets fuels healthy economic growth and import demand.

As U.S. exporters respond, the Look South markets’ share of total U.S. goods exports has steadily grown from 17 percent in 2009 to 20 percent in 2013.

Here are some more interesting facts about our exports to free trade agreement partners in Latin America:

  • U.S. goods exports to Colombia, Mexico, Panama, and Peru have increased every year since 2009;
  • Exports to Mexico grew by more than $10 billion – nearly 5 percent – in 2013;
  • U.S. 2013 goods exports to Mexico totaled $226 billion, exceeding combined U.S. exports to the BRICs countries — Brazil, Russia, India, China, and South Africa;
  • The $57 billion in combined U.S. exports to Chile, Colombia, Panama, and Peru would rank them as our 5th largest export market behind Japan and ahead of Germany; and,
  • The $29 billion in combined U.S. exports to the six remaining Look South markets – Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua — would rank them just behind France or Singapore.

We love talking about this data, but we love it more when we can help U.S. companies act on the data and find success!

The Look South website can help your business find the on-the-ground opportunities. You can also see market snapshots by industry with “Best Prospect Sectors.”

So Look South today to get your piece of the growing export pie!

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