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ITA Joins with Small Business Development Centers to Help U.S. Exporters

October 4, 2011

By Philippa Olsen, a marketing and communications specialist with the U.S. and Foreign Commercial Service.

Lyn Doverspike (center), director of the Pittsburgh, Pennsylvania, Export Assistance Center, speaking at an Export Achievement Award ceremony for Cardinal Resources LLC. Exports account for close to 80 percent of the environmental services company’s sales. Also attending the ceremony were Rep. Mike Doyle (right) and Kevin Jones, president of Cardinal Resources (left). (U.S. Department of Commerce photo)

Lyn Doverspike (center), director of the Pittsburgh, Pennsylvania, Export Assistance Center, speaking at an Export Achievement Award ceremony for Cardinal Resources LLC. Exports account for close to 80 percent of the environmental services company’s sales. Also attending the ceremony were Rep. Mike Doyle (right) and Kevin Jones, president of Cardinal Resources (left). (U.S. Department of Commerce photo)

In their business counseling efforts, the Small Business Development Centers (SBDCs) often work closely with the International Trade Administration’s U.S. and Foreign Commercial Service (USFCS) through the network of U.S. Export Assistance Centers (USEACs). There are more than 100 USEACs located across the country that are staffed by trade specialists who can provide market intelligence, trade counseling, business matchmaking, and advocacy support. The USEACs can also call on the knowledge and expertise of the USFCS’s overseas staff members, who are located in more than 75 U.S. embassies and consulates.

Lyn Doverspike, director of the Pittsburgh, Pennsylvania, USEAC noted, “SBDCs are a perfect partner for us because they provide trade counseling for new exporters, as our complementary focus is on companies already exporting.” She added that “companies exporting for the first time have a longer timeline before they begin, and SBDCs offer foundational counseling for them before the U.S. Commercial Service steps in and offers them specific exporting assistance.”

This collaboration is especially beneficial in rural areas, commented Vickie Gyenes, a global trade manager who assists small businesses in the Appalachian region of western Pennsylvania through the St. Vincent College SBDC in Latrobe and the St. Francis University SBDC in Ebensburg. “Our clients are all small to medium-sized enterprises and may have experimented with exports in the past, but now see exporting as a vital part of their business,” she said. “SBDCs provide secondary market research; organize educational seminars—from basic training to more complicated topics, such as export controls; and work with the USEACs who have overseas presence and expertise. It’s a joint effort and a great relationship.”

In 2010, the St. Vincent College SBDC’s Center for Global Competitiveness received the President’s E Award for Export Service. This annual award recognizes U.S. companies and organizations that facilitate export trade and contribute to U.S. job growth and competitiveness. From late 2009 through 2010, the center’s efforts directly generated more than $8.9 million in increased export sales for Pennsylvania companies, accounting for more than 150 new or retained jobs

Posted in Commercial Service, Exporting, Interagency, International Trade Administration, International Trade Update, Small Business | Tagged , , , , , | 8 Comments »

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Making it Easier to Sell Products “Made in America”

October 3, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

It was a good day for American businesses and workers.

Earlier this afternoon, President Obama submitted three free-trade deals — with Korea, Colombia and Panama — to Congress for consideration.  If passed, these agreements would be a big boost to our economy, providing new opportunities for U.S. companies abroad, while strengthening our economy here at home.

As the President said: “These agreements will support tens of thousands of jobs across the country for workers making products stamped with three proud words: Made in America.”

President Obama has long said that exports are a key to the nation’s economic recovery.  Nearly two years ago, he launched the National Export Initiative with the goal of doubling U.S. exports by the end of 2014.  And, last month, in a speech before Congress where he unveiled the American Jobs Act — a bipartisan proposal to put Americans back to work — he stressed the economic benefits of these free-trade agreements.

The President has correctly recognized that exporting provides U.S. businesses with new opportunities to sell their goods and services in markets overseas.  The pending FTAs before Congress would ensure that this trade — with three important markets — is both free and fair.

This is important.  Consider that, in 2010, the United States enjoyed a $9.9 billion non-oil trade surplus with our FTA partners, as compared to a $371 billion non-oil trade deficit with the rest of the world.  In addition, last year, 41 percent of U.S. goods exports went to our FTA partners, even though those countries only account for 9 percent of global Gross Domestic Product.

Clearly, fair trade is good for our economic health and future.  If passed, the pending FTAs are sure to enhance these benefits.  Now, there have been a lot of misconceptions about these FTAs.  To set the record straight, here are some basic facts:

Korea

The U.S. –Korea trade agreement will:

  • Support at least 70,000 American jobs, and boost annual exports of American goods by up to $11 billion through tariff reductions alone.
  • Create new opportunities for U.S. exporters in Korea’s $1.5 trillion economy, the 12th largest in the world in 2010, based on purchasing power parity exchange rates.

Colombia

The U.S. – Colombia trade agreement will:

  • Generate new possibilities in the 3rd largest economy in Central and South America.
  • Reduce barriers to U.S. exports, spurring new opportunities for our businesses, workers, farmers and ranchers, thereby supporting more and better jobs for Americans.

Panama

The U.S. – Panama trade agreement will:

  • Provide new possibilities with one of the fastest growing economies in Latin America, expanding 6.2 percent in 2010, with similar annual growth forecast through 2015.
  • Enhance U.S. competitiveness by eliminating tariffs and other barriers to U.S. exports and expanding trade between our two countries.

Bottom line: By ensuring that the American people have a level-playing field to compete on in these three important markets, the FTAs would spur billions in economic activity, support tens of thousands of American jobs, and sharpen the United States’ competitive edge moving into the future.

The President has worked hard to strengthen these agreements to, in his words, “get the best possible deal for American workers.”

Now, I join his call in urging Congress to pass the FTAs without delay.

Posted in Competitiveness, Exporting, International Trade Administration, Korea-US Trade, Small Business | Tagged , , , , , | 5 Comments »

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U.S. Commercial Service – A Smooth Operator

August 2, 2011

Carrie Bevis is an intern at the International Trade Administration’s Office of Public Affairs.

Last week, a group of ITA interns, myself included, shuttled over to the Commercial Service Export Assistance Center for Virginia and DC in Ballston for our first fieldtrip! There are 108 U.S. Export Assistance Centers or USEACs spread out across the United States that serve as the domestic arm of the U.S. and Foreign Commercial Service (US&FCS). “Our trade specialists are the boots on the ground in local communities across the country that connect U.S. businesses to and the various programs that ITA and US&FCS has to offer,” said Director General of the US&FCS Suresh Kumar.

As we excitedly assembled ourselves around a sunny conference table with William Fanjoy, Director of the VA/DC Export Assistance Center and Sandra J. Collazo, Senior International Trade Specialist, we eagerly leaned in to hear more about how the Commercial Service works out in the field office around the country. Of all the trade organizations in the government, Commercial Service is the networker, the “one-stop shop” for any company who believes they’re ready to export. Fanjoy is many things; a networker, a salesman, a shameless Peace Corp promoter, but he would never claim to be an expert in international trade. Instead, he and his team are experts in international trade resources.

ITA Interns on a field trip to the Northern Virginia Export Assistance Center

ITA Interns on a field trip to the Northern Virginia Export Assistance Center. Photo Credit: U.S. Dept. of Commerce, ITA

If the trade promotion sectors under the government are a well oiled machine, then Commercial Service is the oil that helps all the parts run smoothly together. There are many government agencies committed to advancing international trade with specific functions. Apart from ITA, there is the International Trade Commission (ITC), the Small Business Administration (SBA), the Export-Import Bank (EXIM Banks), and the U.S. Trade and Development Agency (USTDA) which are all bound by a similar mission: help U.S. companies to export. Short of a pending identity crisis, I asked Fanjoy why there were so many seemingly similar organizations and how the teams at Commercial Service tie in. “All those departments specialize in something specific and important to advancing international trade. Working for the US&FCS, my job is to understand all the needs of the exporter and link them to specific services that span several different Federal and State agencies, as well as services provided by the private sector,” said Fanjoy. “Most successful exporters utilize four or five services from two or three organizations in every export transaction. I can’t tell you what the exact tariff is for batteries entering India, but I sure as hell can tell you who can, and that person is a good friend of mine. My job involves building relationships with the people in all of those agencies so that when I get a call from a business seeking export help, I can connect them to the appropriate person and trust that they will be coached through the process.”

What’s especially impressive about US&FCS connectivity is that they have 126 foreign offices in U.S. embassies and administrations in 75 countries across the globe. The insight and benefit of having officers physically working in the end destination of the future exports is invaluable to U.S. businesses that may be hesitant about international trade. Not only does this ensure an accurate, first hand perspective on overseas markets and the securing of U.S. interests, but it also allows your local export center to wield the power of a foreign embassy in ensuring fair trade. Trade can be scary and uncertain for small companies, but Commercial Service is there to illuminate the process and shed light on any shady transactions a firm may encounter.

Working in an export center is taxing, but rewarding. At the end of the day, it all comes down to how many people (and how well) you actually helped to export a good or service. And at the end of the year, every trade specialist has about 40 export successes, meaning that their personal help can be traced back from an actual exchange of goods or service by a U.S. business. In total, US&FCS helped 18,000 businesses export their goods and services last year.

In order to achieve that level of success, the employees must continuously reach out to local businesses. Fanjoy describes himself as a salesman because he must actively market the USEAC’s services. With the goal of doubling exports by 2014 set by the National Export Initiative, Commercial Service teams cannot afford to wait for the calls to trickle in so the they must be proactive in seeking out new clients with export potential. They travel the state to reach out to small businesses through seminars and travel the world to help businesses reach out to potential clients through trade missions.

On average, it takes about 18 months from the time a call comes in to the time exports are exchanged. Often when a business calls their export center, they are far from being export-ready, and are only export-interested. These firms are led through the process of market research and trade financing that is necessary to ensure that they’re ready to engage with foreign markets. Once they’re ready, US&FCS can play matchmaker by offering the Gold-Key Match-making Service to firms, a program that handles the often complicated logistics of visiting foreign companies on trade missions.

We all left with a better understanding of how our work is making a difference to real businesses in our area, and a little relieved to know that it is someone else’s job to understand all the interworkings of every agency. I’m assured that any business would find themselves in capable hands at their local USEAC, as they’re all staffed by some smooth operators.

Posted in Commercial Service, Exporting, National Export Initiative, Small Business | 4 Comments »

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Accudyne Systems, Inc. – Export Expert with a Little Help from Their Friends

July 29, 2011

This post contains external links. Please review our external linking policy.

Carrie Bevis is an intern in the Office of Public Affairs at the International Trade Administration. She is entering her second-year as a student a the University of Virginia at the School of Commerce.

About six years ago, Accudyne Systems, Inc. was a diamond in the rough, a jewel of American innovation and manufacturing prowess that was hidden in the far back corners of a composite trade show in Paris where it could be easily overlooked by potential clients. Of course, that all changed when John Melilli, the vice president of sales and marketing for Accudyne Systems Inc. discovered the resources available to him and the company from the U.S. Department of Commerce.  Now an International Trade Administration (ITA) success story, Accudyne Systems, Inc. uses their success in international sales to help promote the department’s National Export Initiative (NEI) announced by the Obama administration with the goal of doubling exports by the end of 2014.

Accudyne Systems, Inc. developed automation manufacturing of parts used by airplanes like Boeing 787 for improved productivity and consistency.

Accudyne Systems, Inc. developed automation manufacturing of parts used by airplanes like Boeing 787 for improved productivity and consistency.

At an NEI event held in Wilmington, Delaware in May 2011, Melilli recalls how far the company has come since its first appearance at the JEC Composite trade Show in Paris. The Commercial Service branch of ITA hosts a U.S. pavilion at JEC and other international trade shows. Hosting about a dozen companies in the pavilion, Commercial Service can negotiate a prime location and a variety of services to bolster the company’s edge in competing for international clients.  The pavilion provides internet access, conference rooms, coffee and refreshments, translation services, even a wine and cheese open house for attracting prospective clients. Melilli recalls that before, “You would almost have needed a magnifying glass to find us,” but since discovering the help and resources provided by Commercial Service within ITA, now “we look like a Fortune 100 company.”

Accuydne Systems, Inc., an engineering, design, and manufacturing firm, is a small American business based in Newark, Delaware. The firm’s story begins in 1996, as the product of a merger between EPOCH and WTC, two strong engineering consulting firms. The company consists of about 40 staff members, which include engineers, designers, technicians, and support personnel. They’re all bound to the company’s mission to solve manufacturing challenges through the creation of custom automation equipment. The firm adheres to a seven step process which includes  concept development, preliminary design, following up with a detail design, then fabrication, on to assembly, implementing with start up, and finally installing and providing training and continued support. The firm works in composite and industrial automation and specializes in  process and product development that is translated to automated manufacturing systems that embody disruptive technologies for their clients.  Their array of solutions is leading the way in industrial automation.

This mechanical infant was designed by the firm at the request of Johns Hopkins to simulate a fetus with adjustable shoulders, imbedded sensors to monitor head rotation, head tilt, and spine stretch so doctors can practice difficult deliveries.

This mechanical infant was designed by the firm at the request of Johns Hopkins to simulate a fetus with adjustable shoulders, imbedded sensors to monitor head rotation, head tilt, and spine stretch so doctors can practice difficult deliveries.

While numerous small businesses and large corporations alike flocked to Accudyne Systems, Inc. to get customized help, Accudyne Systems, Inc. turned to the  Commercial Service for personal support as well. In 2008, the firm benefitted from a mass promotional campaign assembled by the London-based trade specialist Lisa Cogan by working with other professional businesses in the composite field.  Senior Trade Specialist, Sam Cerrato, the account executive of Accudyne Systems, Inc. for Philadelphia Export Assistance Center noted, “They’ve had great success at the trade shows that they’ve participated in and have been committed to exporting.”

The business has now exported its unique machines to the United Kingdom, Italy, Turkey, Spain, and Sri Lanka. Thanks to export sales, the innovative firm’s sales have increased by over 30 percent. As a result of their increasing demand and ability to export, The Delaware-based firm has relocated to a larger facility in Newark where it has added six new employees due to its export expansion. Finding ITA to be an invaluable resource, John Melilli advised, “If part of your value proposition does not include these people [in the International Trade Administration] you’re not using your tax money wisely.”

Accudyne Systems, Inc. is just one of the thousands of successful companies who have found buyers abroad through the network of the International Trade Administration’s Commercial Service. You can find out more about the services offered to small, medium and large companies by visiting http://export.gov.

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, National Export Initiative, Small Business | 7 Comments »

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The President’s Export Council Visits Capitol Hill

July 20, 2011

Dominique Griffith is an intern for the International Trade Administrations’ Office of Advisory Committees. He is a rising senior at American University, studying International Relations.

Last week, staff representatives of the President’s Export Council (PEC) along with administrative officials held staff briefings on Captiol Hill on the role of the PEC and its recent work. The PEC is the principal advisory committee on international trade to the executive branch. These briefings, which were done separately for the House of Representatives and the Senate, addressed the PEC’s background (the administration, the private sector, and the congressional role), trade policy, export assistance, small business and workforce assistance, and success measuring for U.S. businesses.

Our staff representative for Xerox pointed out that when, the CEO of Xerox, Ursula Burns, was asked to be the Vice Chair of the PEC she wanted make sure this particular PEC focuses on “measurement and accountability.” In other words, she did not want the PEC to only discuss ideas on how to help U.S. exporters, she wanted to see action. She also wanted to have this action recorded and measured. The PEC has requested this measuring trend so that the Administration can truly see action and progress on policies for which businesses have been advocating.

As an intern for ITA’s Office of Advisory Committees, I assist staff members with tasks such as writing briefing papers and industry research. That being said, one of the most rewarding projects I’ve had a chance to work on has been the “balanced score card” for the PEC’s recommendations. The score card included the PEC’s recommendations, polices that have been implemented thus far, and what actions the Administration will be taking to be responsive to the recommendations. Some of the recommendations included advocating for the passage of the pending Free Trade Agreements, visa reform, enhancement of our transportation infrastructure, and better coordinated export assistances for small and medium enterprises (SMEs). The PEC’s recommendation on transportation infrastructure was particularly interesting to me because it outlined how reliable transportation and infrastructure can help the flow of exports which are essential to our economy. For example, the Department of Transportation’s second round of TIGER (Transportation Investment Generating Economic Recovery) grants focused on financing infrastructure projects that would enhance exports. Another recommendation that is being implemented is on Export Control Reform. Just yesterday, White House Chief of Staff Daley discussed how critical these reforms are so I’m looking forward to see how the PECSEA (the PEC subcommittee that focuses on export controls) moves forward on it’s ideas to strengthen national security through reforming the U.S export control system.

After reading through the recommendations and seeing how the Administration has responded, I soon began to realize how implementing the PEC recommendations will lead to an increase in exports and get our economy back to where it needs to be. Last week’s Hill briefings were a success and although I am only an intern, I know that the work we do with the PEC is vital to the Administration and especially to businesses across the country.

Posted in Exporting, International Trade Administration, Small Business, Trade Advisory | Tagged , , , , | 1 Comment »

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U.S. Aerospace Industry Goes Big at the 2011 Paris Air Show

June 16, 2011

Jonathan Chesebro is an International Trade Specialist for Manufacturing and Services within the International Trade Administration. He is a member of the Aerospace Team and focuses on analysis and promotion of the aerospace industry.

On June 20, the Department of Commerce and the global aerospace industry will descend upon Le Bourget Exhibition Center in Paris France for the 49th annual Paris Air Show (PAS), the world’s largest aerospace trade exhibition in 2011.  Francisco Sánchez, Under Secretary of Commerce for International Trade, will lead the Department of Commerce delegation to support the President’s National Export Initiative (NEI) and the U.S. aerospace industry.  The show attracts the participation of CEOs from the major U.S. and foreign aerospace companies as well as high-level government officials from around the world. 

SALON DU BOURGET 2009 THE PARIS AIRSHOW 2009

Salon du Bourget 2009 The Paris Airshow 2009

With over 2,000 exhibitors, 340,000 visitors, and 200 international delegations in attendance, the show provides the ideal opportunity for ITA to partner with U.S. industry to support NEI goals, advocate for U.S aerospace companies bidding on contracts and hold policy discussions with foreign governments.  In addition, ITA will exchange views with Congressional and state delegations attending the trade show.

The U.S. aerospace industry is internationally competitive and is the largest in the world.  The industry includes the manufacturing of civil and military aircraft, missiles, space vehicles, and parts of all of the foregoing.  Despite the lingering effects of the global economic downturn, the industry continued to show reasonable strength in 2010, contributing $78 billion in export sales to the U.S. economy.  The industry’s positive trade balance of $44 billion is the largest trade surplus of any manufacturing industry and came from exporting 42 percent of all aerospace production and 72 percent of civil aircraft and component production.

According to a 2008 study by the U.S. Department of Commerce, aerospace supports more jobs through exports than any other industry.  The U.S. aerospace industry directly supports about 430,000 jobs and indirectly supports more than 700,000 additional jobs.  In addition, U.S. aerospace workers are well-paid, earning 47 percent more than manufacturing workers generally

Foreign firms are attracted to the U.S. aerospace market because it is the largest in the world and has a skilled workforce, extensive distribution systems, diverse products, and strong support at the local and national level for policy and promotion.  Industry estimates indicate that the annual increase in the number of large commercial airplanes added to the worldwide fleet over the next 20 years will be 3.2 percent per year for a total of 30,900 valued at $3.6 trillion at list prices.

The Commerce Department has been actively supporting U.S. aerospace industry competitiveness through a series of recent events.  In June 2010, Assistant Secretary for Manufacturing and Services Nicole Lamb-Hale delivered keynote remarks during the “ExportNow: New Markets, New Jobs for Kansas” event where more than 150 companies, learned about the economic opportunities of international trade.  U.S. aerospace companies Hawker Beechcraft Corporation and Spirit Aero Systems were among those in attendance, as well as the National Center for Aviation Training, which opened in 2010 and provides training in the areas of general aviation manufacturing and aircraft and power plant mechanics.  Wichita is a major U.S. aerospace manufacturing cluster and is home to hundreds of aerospace companies that employ over 40,000 people.

Another area where the Commerce Department is supporting U.S. aerospace industry competitiveness is in the area of foreign direct investment.  In February 2010, Under Secretary Francisco Sánchez participated in the opening ceremony for a new Embraer assembly facility in Melbourne, Florida.  Embraer is a Brazilian manufacturer of commercial, general aviation, and defense aircraft, and this new plant will employ up to 200 people from the area and represents a $50 million investment.  This significant investment supports the President’s NEI goals since some of the facilities products will be exported.  It also demonstrates the competitiveness of the U.S. aerospace industry in the global marketplace since Embraer chose to invest in the U.S. rather than in another market.

ITA has also worked with Boeing’s Supplier Management Office to organize a webinar for U.S. aerospace companies that discussed how to participate in Boeing’s global supply chain, which includes over 22,000 small, medium, and large companies.  In addition, ITA organized a webinar with Airbus procurement officials and over 200 companies where Airbus officials discussed the company’s procurement strategy and how U.S. companies can become part of its supply chain.

The U.S. aerospace industry is a significant contributor to U.S. exports, jobs and economic growth, which is why the industry is a priority sector under the NEI.  The more that U.S. aerospace companies export, the more they produce, and the more workers they need. 

Stay tuned for a second article on the Paris Air Show!

Posted in Competitiveness, Exporting, International Trade Administration, Manufacturing, Manufacturing and Services, National Export Initiative, Paris Air Show, Small Business, Supply Chain, Trade Shows and Trade Events | Tagged , , | 5 Comments »

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Sustainable Manufacturing is Big Business for one Small Business in Bozeman

May 19, 2011

Tim Truman is a Supervisory Public Affairs Specialist currently covering the APEC Senior Officials Meetings and other events in Big Sky, Montana.

This week we’ve been talking a lot about small business, competitiveness, supply chain issues, and growing a green business here in Big Sky, Montana with the 21 economies of the Asia Pacific Economic Cooperation, or APEC. One business here in Bozeman stands out above the others.

Under Secretary of Commerce for International Trade Francisco J. Sanchez speaks at the West Paw Design event.

Under Secretary of Commerce for International Trade Francisco J. Sanchez speaks at the West Paw Design event.

West Paw Design is a Bozeman, Montana-based manufacturer of high-quality beds, toys and apparel for dogs and cats. The people behind the company are proud to offer eco-friendly pet products that are made in the USA. Beginning with certified organic cat nip in 1996, West Paw Design has continually added healthy, safe and eco-friendly materials to its growing mix of pet products. By using fill made from reclaimed plastic bottles for its stuffed beds and toys, the company has diverted more than 5 million plastic bottles from landfills to date. In addition to the recycled, recyclable and organic materials that go into many products, West Paw Design is driven by a responsibility to make environmentally sound choices when it comes to its manufacturing facility and processes used each day.

Not just eco-friendly and environmentally conscious but also profitable and competitive as well. West Paw Design exports to 25 countries and their products are available in 3,000 pet specialty retail outlets and online at www.westpawdesign.com

Today Commerce Secretary Gary Locke visited West Paw Design along with many representatives from the APEC Small and Medium Enterprise Working Group to see how West Paw Design has made use of many government and local resources to achieve the success in becoming a regional leader in the field of sustainable manufacturing.

West Paw Design is a prime example of how small manufacturing companies can take advantage of local, state and federal resources offered at minimal cost to help them become sustainable, competitive and profitable. They currently employ 41 people and profits have grown more than 10  percent in the past year while employment grew 17 percent.

Just a few of the resources that West Paw Design has used include an SBA 504 loan to expand its building. The expansion project supported 29 local jobs and generated over $2.5 million in total economic benefit to the community. Additionally, when looking to expand into new export markets, West Paw Design made use of the U.S. Commercial Service’s network of products and experts to learn about managing risk, foreign duty rates and VAT charges.

This event is an opportunity for participating companies and policy makers to learn about the types of resources APEC economies have developed to help small and medium enterprises implement sustainable business practices.

Posted in APEC, Competitiveness, Exporting, Green and Sustainable, International Trade Administration, Manufacturing, Manufacturing Council, Small Business | 7 Comments »

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Ethics as a Competitive Advantage for APEC SMEs in the Global Supply Chain

May 17, 2011

Anita Ramasastry is a Senior Advisor to the Assistant Secretary of Commerce for Market Access and Compliance who focuses on anti-corruption in trade.

On Saturday May 14, more than 100 participants from the public and private sector – participated in an interactive seminar focused on the why small and medium-size enterprises, or SMEs  in the Asian Pacific Economic Cooperation (APEC) region can gain a competitive advantage through demonstrating a commitment to transparent, ethical business practices .   SMEs account for approximately 99% of businesses within the  21 economies of the APEC region and account for between 30 to 60% of GDP in individual economies.

Senior ethics and compliance officers from leading multinational corporations,  Warner Bros Entertainment, Best Buy, Boeing, ITT and Sealed Air, spoke about the risks they encounter with respect to corruption, bribery and conflicts of interest when doing business in global markets.   The panel described the changing legal landscape  internationally and the need for companies to comply with anti-bribery laws that prohibit illegal conduct wherever they do business. These laws include the U.S. Foreign Corrupt Practices Act and also the new UK Bribery Act., among others.

The panel explained  SMEs often serve many roles, acting as distributors, agents, suppliers, consultants, and service providers in their global supply chains,.  These experts noted  that their companies abide by high ethical standards and look for ethical business partners when operating in overseas locations.  They will often engage in due diligence to determine if an SME will be a trustworthy agent or partner. Each of the panelists noted that SMEs could gain a competitive advantage by demonstrating strong ethical practices and also transparency with respect to their operations and potential conflicts of interest.

They also noted that if a country was too risky and there were too many problems , they could go elsewhere.  Shelley Presser, a  Senior Vice President and Deputy General Counsel for Warner Bros noted that a film could be shot anywhere in the world.  He noted, for example that you could recreate any scene or landmark almost anywhere in the world.  

The workshop concluded with a discussion of a series of hypothetical dilemmas that multinationals encounter overseas.  What happens, for example, if a company’s local supplier wants to hire his or her brother-in-law for a contract?  What should companies do if an agent tells them that a government official has requested a trip to visit a plant as part of awarding a government contract?  What kinds of gifts is it okay to give to officials or business partners in other countries?  What happens if a customs officer asks for an extra payment to clear goods through a port?   Through an interactive discussion, SMEs learned about the types of activities that raise concern for multinationals, and also about the need to be proactive about alerting larger companies when problems arise. The takeaway:  SMEs  that take ethics seriously, will gain benefits, including the ability to associate with respected multinational companies

Posted in APEC, Competitiveness, Small Business | Tagged , , , | 3 Comments »

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Improving Small Business Competitiveness in APEC through Sustainable Business Practices

May 16, 2011

Kelsey Scheich is the APEC Affairs Coordinator in Market Access and Compliance at the International Trade Administration.

This weekend in Big Sky, Montana, the APEC Small and Medium Enterprise Working Group hosted a seminar on Improving SME Competitiveness through Sustainable Business Practices.  This seminar supports the APEC Strategic Plan of Raising Awareness of Sustainable Business Practices.

This half-day participatory seminar included panel sessions that sought to address and discuss issues relevant to SME sustainability, including views from the SMEs, policymakers, and financial and multilateral development institutions.  The goal of this seminar was to discuss and identify practical actions APEC can take to support material improvement in SME competitiveness through sustainable business practices.  The seminar’s co-organizers were the Wharton School’s Lauder Institute at the University of Pennsylvania, an organization that has extensive experience in research and educational programs in APEC economies, and Banca Civica, a Spanish bank with a unique approach that supports SME sustainability. 

During the session, presenters highlighted the results of the APEC Survey of private sector companies, which indicated that pursuing sustainability practices is often driven by customer demand and can lead to increased efficiencies and profitability. A number of challenges were identified  including the need for financial products that support sustainability and the difficulty in pursuading shareholders of the value that sustainability brings to the company.

This session also addressed sustainability from the perspective of small business owners. Pannelists noted that it is a myth that sustainability and profitability are mutually exclusive, but the challenge lies in balancing the two. Many participants indicated that sustainability is often rooted in core personal or family values that compel them to act, lead them to work with like-minded companies, and serve as inspiration to customers, fellow SMEs and even large corporations. As one small business owner in the audience noted, “do good things and other will follow.”

Posted in APEC, Competitiveness, International Trade Administration, Small Business | 5 Comments »

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Visiting Delegations at 2011 International Consumer Electronics Show Here to Buy Your Products!

January 6, 2011

This post contains external links. Please review our external linking policy

Vidya Desai is an International Trade Specialist with the U.S. Commercial Service International Buyer Program.

I am writing to you from the bustling International Commerce Center (ICC), here at the 2011 International CES, one of the largest consumer electronics show in the world.  It is opening day of the show and thousands of people are anxiously awaiting the opening of the show floor.  Among these thousands are 34 foreign buyer delegations recruited by the Commercial Service International Buyer Program (IBP).  There are over 700 IBP recruited delegates from key markets, including buyers from China, Brazil, Vietnam, who have traveled the distance to make deals with U.S. companies.

We have several meetings scheduled between U.S. exhibitors and overseas Commercial Specialists.  These meetings help educate U.S. companies about the overseas markets to see if their products can succeed.  If you’re a U.S. exhibitor at CES and want to take advantage of this service, it’s not too late!  Stop by the ICC in the South Hall Connector, Room S224/S225 to request a meeting.

In addition to all the buzz around the ICC, Commerce Secretary Locke will be visiting the show today!  Secretary Locke will be speaking at one of the session at the Tech Policy Summit this morning.  It is just the beginning of an exciting four days here at CES and we hope to help make your visit to CES a success!

Posted in Commercial Service, Exporting, International Trade Administration, Small Business, Trade Shows and Trade Events | Tagged , , , | 3 Comments »

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