Archive for the ‘Uncategorized’ Category

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Doing Business in Peru—TPP Offers Expanded U.S. Export Opportunities

June 28, 2016

Ricardo Pelaez, Senior Commercial Officer, Lima, Peru

For a decade (2003-2013), Peru was Latin America’s fastest growing economy with an average annual growth rate of 6.3 percent. Over the same time period, it cut poverty in half from 54% to 23.4%. Peru’s economy continued to grow at rates of 2.4 and 2.9% in 2014 and 2015 respectively and is outperforming its regional neighbors. Experts forecast Peru’s economy will return to 3.7 and 4.1 % growth in 2016 and 2017, respectively. This growth will be driven by expanded mining production and anticipated continuation of sound macro-economic and market friendly policies under a new Kuczynski government that takes office on July 28, 2016.

Peru

Peru

Peru’s low inflation and second highest credit rating in Latin America make it an attractive market for U.S. exporters. Peru is our 6th largest export market in Latin America, with U.S. exports totaling $8.8 billion in 2015. Some 12,000 U.S. companies currently export to Peru, roughly 86% of which are SMEs. The United States is Peru’s 2nd largest export market and 2nd largest supplier of imports after China. U.S. products and services are well-positioned to expand in sectors such as mining, construction, food processing and packaging, e-commerce, education, industrial chemicals, medical supplies and equipment, plastics, water management, and security and safety equipment.

The U.S.-Peru Trade Promotion Agreement (PTPA) entered into force in 2009, immediately eliminating tariffs on over 80% of U.S. consumer and industrial products exports to Peru. PTPA has had a tremendously positive impact on trade between our two countries. Since 2009, two-way trade between the U.S. and Peru has grown 8% per year and U.S. exports to Peru have grown 11% per year. Furthermore, the PTPA was a catalyst for Peru to sign another 16 FTAs encompassing 52 economies, cementing its free- trade policy. Peru is actively pursuing regional trade integration through membership in the Pacific Alliance and the Trans-Pacific Partnership (TPP).

In the past few months, my team has assisted more than 170 U.S. exporters interested in penetrating the Peruvian market and recruited over 420 Peruvian buyers to attend U.S. trade shows. We supported over 50 U.S. exhibitors at Perumin, Peru’s largest mining convention and trade show held in Arequipa biennially. In response to a Presidential initiative improving Peruvian citizens’ access to healthcare, we organized a three-day Healthcare Trade and Investment mission led by the Deputy Secretary of Commerce that featured 23 U.S. companies.

The Peruvian government has allocated an additional $1.6 billion to invest in education projects in 2016, which includes the building and design of high performance schools with state of the art educational technologies. Peru’s investment in new transportation and telecommunications infrastructure will contribute to growth in the construction sector, while ongoing mining and energy projects and the continued demand for housing and office facilities will further spur growth in the market and offer new opportunities for U.S. firms.

Peru’s world-renowned gastronomy has fostered growth in its local food processing and packaging industry. Local Peruvian ingredients such as fruits, peppers and Andean cereals are now being successfully marketed internationally. The growing middle-class now has greater purchasing power for more expensive, processed and packaged food products which offers opportunities for U.S. technologies in this sector.

All of these developments mean good news for U.S. exporters. Once in force, the TPP Agreement will amplify the synergies between our two markets, as we increase exports to the other TPP member countries, particularly Asian markets. The TPP will add to the success of the PTPA and increase opportunities for new partnerships between Peruvian and U.S. companies.

As of 2014, over 39,000 U.S. jobs were supported by goods exported to Peru, and that success is expected to increase under the TPP. To learn more about doing business in Peru and other markets, I invite you to select Peru under our Country Commercial Guides. To learn more about U.S. export opportunities to Peru under TPP visit our Peru TPP Country Report.

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World Trade Month May be Coming to an End, but our Work Continues

May 27, 2016

This post originally appeared on the Department of Commerce blog.

World Trade Month logo

World Trade Month logo

During the past few weeks, ITA employees have participated in events across the country in recognition of World Trade Month. The month gives us all an opportunity to acknowledge the importance of trade and investment as a driver of prosperity for our workers, businesses, and the U.S. economy.

Under Secretary Stefan Selig kicked off World Trade Week at the International Trade Awards breakfast with business leaders and foreign government representative in New York City.

On May 16, U.S. Secretary of Commerce Penny Pritzker honored 123 U.S. companies and organizations that export goods and services overseas during the 2016 President’s “E” Awards ceremony. This year, for the first time in the award’s 54-year history, winners represent every state and the District of Columbia. This was a true representation that trade is fundamental to the success of American workers.

During the week of May 16 we celebrated World Trade Week by leading two trade missions: a renewable energy trade mission to Mexico and a business development mission to the South Pacific.

In addition, on May 25, we had the pleasure of partnering with the Global Innovation Forum—a project of the National Foreign Trade Council—for an educational program at Microsoft Ventures in Seattle as a part of our Startup Global program, an initiative designed to help more startup firms think on a global scale from the earliest stages of growth.

But as we look forward beyond May, we must think about the work that must continue. Bilateral trade agreements like the Trans-Pacific Partnership (TPP) are crucial to our economies success. The agreement will eliminate high tariffs and provide a strong path for our businesses here at home.

The ITA staff has developed useful resources on the agreement that can help exporters look forward to this 21st century trade agreement. The Opportunities by Markets Report, Jobs Supported by Exports, country fact sheets, tariff tool and state fact sheets- are all FREE tools that highlight new opportunities available once TPP is passed.

In addition to TPP, we are looking forward to the SelectUSA Summit, June 19-21 in Washington DC. The Summit brings companies that are considering establishing or expanding operations together with economic developers from across the country to learn how the U.S. climate for innovation—as well as the other advantages offered by the United States—can support their global competitiveness. We expect to welcome more than 2,000 participants to Washington from approximately 70 countries and every corner of the United States.

Although World Trade Month may be coming to an end, our work here at ITA will continue. We will continue to advocate fair trade across boarders for American businesses and its workers. We will also continue to provide our customers with resources to help them make informed decisions before, while and after doing business abroad. Stay up to date on the resources available by subscribing to our ITA Newsletter, a monthly update on the latest news in trade.

And for those of you on social media, thanks for being a part of the conversation! #worldtradeweek #EconDevWeek.

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2016 Sector-Specific Reports Provide U.S. Companies with Latest Assessment of Export Opportunities    

May 24, 2016

 

Marcus Jadotte is the International Trade Administration’s Assistant Secretary of Commerce for Industry & Analysis.

Earlier today, the International Trade Administration (ITA) released the 2016 Top Markets Reports to provide the latest assessment of export opportunities for U.S. companies. The Top Markets series is a collection of 19 sector-specific reports that are designed to help U.S. exporters compare markets across borders, using market intelligence and data to inform decision-making.

Top Markets Logo

Top Markets Logo

Thanks to feedback from our clients, we know that having sector-specific, forward-looking market intelligence is imperative for U.S. companies as they work to increase exports and identify their next export market. ITA is committed to providing this type of information and we hope that the Top Markets Reports have helped to meet this need. The 2015 versions of the Top Markets Reports had nearly 68,000 page views and were downloaded more than 16,000 times.

We are excited to build upon our reports from last year to reflect the most up-to-date analysis and insights from our experts, as well as incorporate information about how key developments in 2015 — such as the commitments from the December 2015 United Nations Framework Convention on Climate Change (UNFCCC) in Paris and the conclusion of the Trans-Pacific Partnership agreement negotiations — will impact opportunities for U.S. exporters. Additionally, each report has new country case studies. This year, we have produced seven new reports providing market intelligence for a range of important industries, including pharmaceuticals and manufacturing technology.

From aircraft parts to renewable energy, education to cold supply chain, cloud computing to industrial automation, each Top Markets Report includes commentary on opportunities, trends, and challenges facing U.S. exporters in key potential markets. The reports combine the unique expertise of ITA’s sector leads in Industry & Analysis with economic data and the views of our staff stationed around the world. Exporters can access full reports or view individual sections. Collectively, the series includes more than 200 pieces of individually-viewable market intelligence.

To download a full report or view individual case studies within each report, visit http://www.trade.gov/topmarkets.

The Top Markets Reports are also a tool for federal agencies to use to prioritize export promotion activities and trade policy initiatives. We have already begun to incorporate the insights and analysis from the 2015 Top Markets Reports into these efforts, including targeting trade mission destinations and recruitment for the International Buyers Program at trade shows based on the top market rankings.

We hope you find these reports valuable and welcome your feedback and suggestions.

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Promoting Professional Development and Thought Leadership Throughout the Department of Commerce

April 25, 2016

This post originally appeared on the Department of Commerce blog.

Post by Penny Pritzker

During my nearly three years in office, I have visited nearly 40 countries and met with heads of state, economic ministers, and more than 2,000 business leaders. From these experiences, I have observed three important constants: First: people want economic freedom. Second: foreign governments want U.S. companies to invest in their countries. Third: foreign citizens want access to U.S. products and services. Fourth:  the voices of American private sector leaders – backed with long-term-capital and world-class products and services – carry immense weight around the world.  These constants form the backbone of our vision of commercial diplomacy.

Members of the U.S. and Foreign Commercial Service and headquarters staff gathered for a group photo at the U.S. Department of Commerce in Washington, DC to commemorate the 2014 Global Markets Global Meeting

Members of the U.S. and Foreign Commercial Service and headquarters staff gathered for a group photo at the U.S. Department of Commerce in Washington, DC to commemorate the 2014 Global Markets Global Meeting

Commercial diplomacy is, essentially, a public-private partnership – a recognition that the U.S. government and U.S. businesses have overlapping interests around the world, and that we are more likely to achieve our shared goals by working together. It is about better coordination between the public and private sectors, and it is about leveraging our business community’s knowledge and on-the-ground relationships to advance our common interests. America’s business leaders – serving as commercial diplomats – can speak directly and persuasively to the economic interests of foreign officials.  They can make the business case about how certain public policies might chill investment or otherwise hinder their development goals.

But this is not a traditional tool in America’s foreign policy toolkit. Because our vision of commercial diplomacy brings business leaders to the table as advocates and emissaries in concert with government officials, our Commerce Department officials need to develop new skills and take on new training opportunities in order to support this evolving notion of our partnership with the American business community.

To that end, we are pleased to announce the Commercial Diplomacy Institute (CDI), a vehicle to advance professional development and thought leadership in commercial diplomacy. CDI will consolidate, enhance, and rebrand the suite of training programs delivered by the International Trade Administration, home to our U.S. and foreign commercial service and our primary interface with U.S. business. Our vision is that the activities and programs of the Commercial Diplomacy Institute will play an integral role in educating, mentoring, and growing future generations of commercial diplomats, including business leaders, our commercial service officers, who are in more than 75 markets around the world, and our trade specialists located in over one hundred offices in every state in the country. Training programs will focus on how to equip them to engage foreign governments in support of our work to reduce trade barriers, increase American exports, and connect foreign citizens to our goods and services.

CDI programs will include training online and in the classroom, as well as internships with industry and fellowship opportunities with leading think-tanks. The institute will host a small group of eminent visiting faculty, who will serve as a resource to our policy teams. The programs of the Commercial Diplomacy Institute will grow and expand to meet the evolving needs of U.S. businesses, and ensure that the Commerce Department is central to the U.S. government’s efforts to deploy commercial and economic tools in pursuit of our foreign policy aims.

CDI will also convene our ‘Trade Talks’ lecture series, providing a forum for discussion and engagement with leaders in business, government and the private sector. Past speakers include Karan Bhatia, Vice President for Global Government affairs and Marco Annunziata, Chief Economist, from GE, Michael Burke, CEO of AECOM, former Indian Minister of State Dr. Shashi Tharoor, and Dr. Susan Lund of the McKinsey Global Institute who presented a new report on digital globalization and data flows.  Additional Trade Talks are available on YouTube.

According to a report from the McKinsey Global Institute, digital flows now exert a larger impact on GDP growth than trade in goods. To help respond to the needs of U.S. businesses navigating the digital economy, last month, we announced the establishment of a digital attaché program. Training for attaches will be provided through the Commercial Diplomacy Institute.

As part of this pilot program, commercial service officers in selected markets around the world will focus on digital economy issues, helping U.S. companies navigate regulations and overcome barriers to trade. This initiative will drive policy and advocacy around the world on technology issues, ensure linkages between trade policy and trade promotion efforts, and provide front-line assistance for small and medium enterprises so they can take advantage of robust e-commerce channels.

This administration’s focus on commercial diplomacy stems from our recognition that in the 21st century, America’s unmatched commercial might is an essential pillar in our foreign policy toolkit. The Commerce Department has already brought America’s private sector to bear in fast-growing markets in Asia and Africa, distressed economies like Ukraine, and political hot spots like Tunisia. So, besides providing the development and training our workforce needs to be effective partners for U.S. business, the Commercial Diplomacy Institute will support and extend the Commerce Department’s capacity to help the U.S. government deepen commercial ties around the world, shape a well-functioning international economic order, and promote a future of peace and prosperity for communities across the globe.

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Hannover Messe Exhibitor Spotlight: Tycon Systems

April 20, 2016

Ed. note: This post is part of a series highlighting the upcoming Hannover Messe Trade Show April 25—29, 2016. This series will highlight U.S. exhibitors that will participate in the world’s leading trade fair for industrial technology.

Guest blog post by Bruce Sutton, CEO at Tycon Systems

This is your first time at Hannover Messe. What factors influenced your decision to participate this year?

We are interested in business expansion into the EU and name branding.

Why is the Energy pavilion a natural home for you? 

Bruce Sutton, CEO at Tycon Systems

Bruce Sutton, CEO at Tycon Systems

Tycon Systems designs & manufactures Semi Industrial & Commercial turnkey Remote Power Systems for the outdoors such as RemotePro utilizing solar & wind, Outdoor Backup Power Systems (UPSPRO), and unique Power over Ethernet products. Tycon also manufactures point-to-point wireless systems (EZ-Bridge) for connecting IP Networks up to 3+ miles at 100 Mbps.

What do you hope to accomplish at Hannover Messe?

We hope to find Distributors/Resellers/Integrators in EU and Africa.

When and how did your company begin exporting?

We mainly started exporting in 2013 based on individual demand. In 2015, we exported product to 81 countries, although not in an established formal way.

What impact has exporting had on your company? What advice do you have for other American companies looking to start exporting?

Currently approximately 14% of company products are exported. I would recommend other companies to make the Commercial Service your best friends in learning and investigating exporting.