Expanding US Business through Exports. Jesse M Lapierre Commercial Officer EGSA Presentation March 14, 2011

Transcription

1 Expanding US Business through Exports Jesse M Lapierre Commercial Officer EGSA Presentation March 14, 2011

2 Trade Myths and Facts "There are three kinds of lies: lies, damned lies and statistics. Mark Twain

3 Trade Myths and Facts Everything is made in China MYTH: The United States exports a higher value of products than any other country in the world -- $1.5 trillion in 2009, compared with Germany's $1.3 trillion and China's $1.3 trillion.

4 Trade Myths and Facts Nobody buys American anymore MYTH: The value of U.S. exports to Brazil, India and China increased 121 percent over the past 5 years, compared with a 46 percent increase in U.S. exports overall.

5 Trade Myths and Facts Trade kills jobs MYTH: US exports directly support 6,000,000 manufacturing jobs. Moreover, jobs related to export pay 15% higher wages than non-export related jobs.

6 The World is Open for Business 96% of the world s s consumers live outside of the United States. International trade gives the average American family $9,000 more a year in purchasing power. One in three acres of U.S. agricultural production is exported. Companies that export are less likely to go out of business.

7 Electrical Power Generation Best Markets (USDOC) Belgium Brazil Canada Finland Mexico New Zealand Best Markets (Google) Russia China Turkey Mexico India

8

9 The nine most terrifying words in the English language are, I m m from the government and I m I here to help. President Ronald Reagan

10 U.S. Commercial Service Creating Prosperity Through Trade A Global Network in more than 80 countries and 48 U.S. states. A Government agency that has relationships with foreign government and business leaders in every key global market. Our trade professionals provide expertise across all major industry sectors, both in the U.S. and overseas. Our Goal promote economic prosperity, enhance job creation, and protect U.S. commercial interests abroad.

11 Four Core Competencies Business Matchmaking Market Intelligence Trade Counseling Commercial Diplomacy

12 Trade Lagniappe Things to Avoid Export Restrictions Shipping Resources Financing

13 Things to Avoid Trust, but Verify If it sounds too good to be true, it probably is especially with International Utilize Proper Due Diligence Your legal firm or your local US Export Assistance Center (1 800 USA TRADE or ) Factor in ALL costs Selling internationally incurs additional costs if your customer doesn t pay, you will

14 Export Restrictions Office of Foreign Asset Controls (OFAC) Embargoed Countries ( ) Cuba, Iran, Syria, North Korea, Myanmar (formerly Burma) and Sudan OFAC Listed Countries and Territories Subject to Sanctions Liberia, Iraq, Zimbabwe, Balkans, and Cote D'Ivoire (formerly Ivory Coast) and the Palestinian Territories* Denied Persons List ( ) A list of individuals who are denied export privileges by the Commerce Department

15 Shipping Resources National Customs Brokers & Forwarders Association of America (NCBFAA) A Travel Agent for your export Provides end to end service with a network of logistics and customs experts FedEx, DHL, UPS, etc size = cost!

16 Expo rt F in a n c in g The Export Import Bank (EXIM) ( Loan Guarantee Enables international buyers to obtain loans from lenders Covers 100% of commercial and political risks Flexible financing options and repayment terms No limits on transaction size Medium term and long term financing available Export Credit Insurance covers the risk of buyer nonpayment for commercial risks (e.g., bankruptcy) and certain political risks. This product can replace cash in advance, letters of credit, and other documentary sales.

17 Export Financing Small Business Administration (SBA) Office of International Trade ( Export Working Capital Guarantee Program Purchase Order Financing up to $5 Million Export Express $250K limit but faster processing time International Trade Loan Facilities Improvement

18 Trade IS Good Exports expand business on a local and national level There is help for business to grow internationally

19 U.S. Export Assistance Center 500 Poydras St. Suite 1033 New Orleans, LA export.gov 800.USA.TRADE