SCORE offers small companies an intro to global markets
Companies thinking about importing or exporting can get a good introduction to the basics of doing business across borders from SCORE, the nonprofit "Counselors to America's Small Business" and resource partner with the U.S. Small Business Administration (SBA). Three SCORE chapters have announced one-day Import-Export seminars: SCORE / New York, May 18; SCORE / East Bay (Oakland, Fremont, Calif.), various dates starting May 20; SCORE / San Diego, June 10. Look up local SCORE chapters here.
If you’ve thought about exporting, but have been hesitant to try, can you tell us why? Red tape? The credit crunch? Too risky? Choose (or write in) the biggest obstacle to exporting in our one-question survey here.
Friday, April 30, 2010
Unstop the Bottleneck
Port Authorities say freight infrastructure can’t handle doubling exports
Members of the American Association of Port Authorities (AAPA) testified yesterday at a U.S. Senate Finance subcommittee hearing that the most significant constraint faced by seaports for increasing U.S. exports is the capacity and efficiency of the nation's freight transportation infrastructure. The Subcommittee on International Trade, Customs and Global Competitiveness asked if U.S. seaports are ready to meet the goal set by President Obama of doubling U.S. exports over the next five years. According to the AAPA, while the ports have the capacity for higher volumes, the country’s highways, bridges, railroads, vessel navigation and marine terminal infrastructure are not up to the task.
The “transportation bottleneck” is one choice in the Datamyne one-question survey: What’s the biggest obstacle to exporting for U.S. companies right now? Other choices include: the credit crunch, too much red tape, fear of the unknown. You can cast your vote here.
Members of the American Association of Port Authorities (AAPA) testified yesterday at a U.S. Senate Finance subcommittee hearing that the most significant constraint faced by seaports for increasing U.S. exports is the capacity and efficiency of the nation's freight transportation infrastructure. The Subcommittee on International Trade, Customs and Global Competitiveness asked if U.S. seaports are ready to meet the goal set by President Obama of doubling U.S. exports over the next five years. According to the AAPA, while the ports have the capacity for higher volumes, the country’s highways, bridges, railroads, vessel navigation and marine terminal infrastructure are not up to the task.
The “transportation bottleneck” is one choice in the Datamyne one-question survey: What’s the biggest obstacle to exporting for U.S. companies right now? Other choices include: the credit crunch, too much red tape, fear of the unknown. You can cast your vote here.
Wednesday, April 28, 2010
What's Stopping U.S. Companies from Exporting?
Last update: 6:00 p.m. (ET) May 10
Latest comment:
“Not enough profit for the time invested and also disputing freights 3 months after the loads ships.” 5/10 11:05 a.m. (ET)
“In the last appx 20 years the USA has developed the 'lazy way' of doing business. Everything is done by outsourcing, all the products are only assembled, therefore costing too much.
“Also too many USA execs do not have enough knowledge and the brain power to compete outside of the USA, because they do not know anything about their industry and the processes.
“For 99% of them the products are only a computer blips, and they know nothing about the products, but they think that they are experts who can do any goods. It is normal to see some ex bank director who is a VP for Product Development in the apparel corporation (?).
“Too many execs prefer not to touch the goods, just invoice it, or even better just invoice the profit amount which they are supposed to receive.
“Soon the biggest exporters from the USA will be Disney and Hollywood, and it is sad.” 5/1 1:31 p.m. (ET)
“The lack of space is the biggest obstacle that prevents us from more exports of our goods. That, coupled with the frequent attempts by ocean carriers to increase contract rates.
“Contracts are not worth a dime these days as the rules change constantly, can't get rates filed that were quoted as carriers plan to increase quoted rates within 30 days of original quote.” 5/2 5:31 p.m. (ET)
Latest comment:“Not enough profit for the time invested and also disputing freights 3 months after the loads ships.” 5/10 11:05 a.m. (ET)
Earlier comments (oldest first):
“For those not exporting it is ultimately their risk assessment that takes into account other listed obstacles to exporting compared to investing the same resources in expanding domestic sales into the large US market, that is perceived (fairly or not) as lower risk.” 4/30 9:50 a.m. (ET)
“Quite simply, the most significant constraint faced by U.S. seaports for increasing U.S. exports is the capacity and efficiency of the nation’s freight transportation infrastructure, both land- and water-side.” 4/30 11:57 p.m. (ET)
“Americans are generally very uncomfortable with anything non American. This is why expect for the large corporations many of the entrepreneurial businessman involved in exports are foreign born Americans who are more familiar & do not fear traveling & dealing with overseas buyers or government entities. The US Department of Commerce' budget should be increased to create more help desk support, more trade delegations visiting overseas + more network opportunities & creating export financing opportunities for small businesses.” 4/30 4:51 p.m. (ET)
“In the last appx 20 years the USA has developed the 'lazy way' of doing business. Everything is done by outsourcing, all the products are only assembled, therefore costing too much.
“Also too many USA execs do not have enough knowledge and the brain power to compete outside of the USA, because they do not know anything about their industry and the processes.
“For 99% of them the products are only a computer blips, and they know nothing about the products, but they think that they are experts who can do any goods. It is normal to see some ex bank director who is a VP for Product Development in the apparel corporation (?).
“Too many execs prefer not to touch the goods, just invoice it, or even better just invoice the profit amount which they are supposed to receive.
“Soon the biggest exporters from the USA will be Disney and Hollywood, and it is sad.” 5/1 1:31 p.m. (ET)
“The lack of space is the biggest obstacle that prevents us from more exports of our goods. That, coupled with the frequent attempts by ocean carriers to increase contract rates.
“Contracts are not worth a dime these days as the rules change constantly, can't get rates filed that were quoted as carriers plan to increase quoted rates within 30 days of original quote.” 5/2 5:31 p.m. (ET)
“Product support infrastructure: How will a customer in Europe get a product repaired without sending it back to the USA? Poor support stories from overseas that reach the web reach customers in the US and hurt sales.” 5/4 1:45 p.m. (ET)
See the survey, add your comment, cast your vote here.
More than Granola
Organic foods claim a bigger share of grocery carts
The U.S. Department of Agriculture (USDA) launched a weekly market report on organic fruits and vegetables in April, acknowledgement that natural and organic foods now claim a big share of the mainstream U.S. consumer’s grocery cart.
According to the USDA’s Amber Waves magazine, the past decade has seen a major change in organic product retailing. Independent and small-chain health-food stores used to be the main conduit to market for these products. By 2006, approximately half of all organic food was sold through such conventional channels as Safeway and Costco.
While fruits and vegetables have been top sellers in the organic category since 1997, non-produce items, such as beverages, packaged and prepared foods and, yes, snacks, accounted for 63% of consumer spending on organics in 2008.
You can learn more about this changing sector in the USDA’s Marketing U.S. Organic Foods: Recent Trends from Farms to Consumers. You can learn a good deal about the sector’s current appetite for imports (including natural product and conventional distribution channels) from The Datamyne’s U.S. imports and bill-of-lading databases: just ask us.
The U.S. Department of Agriculture (USDA) launched a weekly market report on organic fruits and vegetables in April, acknowledgement that natural and organic foods now claim a big share of the mainstream U.S. consumer’s grocery cart.
According to the USDA’s Amber Waves magazine, the past decade has seen a major change in organic product retailing. Independent and small-chain health-food stores used to be the main conduit to market for these products. By 2006, approximately half of all organic food was sold through such conventional channels as Safeway and Costco.
While fruits and vegetables have been top sellers in the organic category since 1997, non-produce items, such as beverages, packaged and prepared foods and, yes, snacks, accounted for 63% of consumer spending on organics in 2008.
You can learn more about this changing sector in the USDA’s Marketing U.S. Organic Foods: Recent Trends from Farms to Consumers. You can learn a good deal about the sector’s current appetite for imports (including natural product and conventional distribution channels) from The Datamyne’s U.S. imports and bill-of-lading databases: just ask us.
Sea Change for Bottled Water?
U.S. imports of water from Fiji are down sharply
CNN Living poses the question — has bottled water become the new eco-no-no? — and answers, not quite yet.
But trade statistics do show a marked drop in U.S. imports of “unsweetened water” (HS code 2201) from top sources France (Evian, Perrier, among others) and Fiji (Fiji Water and Aqua Pacific). See the Datamyne Top 5 U.S. Sources for Imported Water.
The backlash against bottled water has been building since at least 2006. Critics say emptied water bottles add unnecessarily to the waste stream … and potable water is too scarce a resource in some exporting countries to privatize. The fall-off in exports of Fiji waters may owe something to local politics; exports were temporarily banned in 2008. Some bad press last year (to which Fiji Water responded here) probably didn’t help sales.
Still, a product touted as “the next wine” by Bottled Water of the World clearly has a future in global trade. Indeed, while many high-end restaurants now offer a choice of bottled or tap water, Fine H2O, a self-described “premier importer and distributor of the finest, most unique luxury bottled waters from around the world” has opened its first boutique in Carmel-By-The-Sea, with others to follow in New York and Philadelphia.
CNN Living poses the question — has bottled water become the new eco-no-no? — and answers, not quite yet.
But trade statistics do show a marked drop in U.S. imports of “unsweetened water” (HS code 2201) from top sources France (Evian, Perrier, among others) and Fiji (Fiji Water and Aqua Pacific). See the Datamyne Top 5 U.S. Sources for Imported Water.
The backlash against bottled water has been building since at least 2006. Critics say emptied water bottles add unnecessarily to the waste stream … and potable water is too scarce a resource in some exporting countries to privatize. The fall-off in exports of Fiji waters may owe something to local politics; exports were temporarily banned in 2008. Some bad press last year (to which Fiji Water responded here) probably didn’t help sales.
Still, a product touted as “the next wine” by Bottled Water of the World clearly has a future in global trade. Indeed, while many high-end restaurants now offer a choice of bottled or tap water, Fine H2O, a self-described “premier importer and distributor of the finest, most unique luxury bottled waters from around the world” has opened its first boutique in Carmel-By-The-Sea, with others to follow in New York and Philadelphia.
Thursday, April 22, 2010
An Earth Day Story
The HS gets in the way of spreading environmental goods
What’s the difference between a pipe used in treating wastewater and a pipe that transports oil? A hotplate and a solar cooker? A refrigerator that’s energy-efficient versus an energy hog? In the Harmonized Commodity Coding and Description System (HS) — at the six-digit level — absolutely nothing. And that’s a problem for policymakers who would encourage global trade in environmental goods, or EGs.
World Trade Organization (WTO) members have worked for years to agree on EGs that would benefit from trade liberalization, starting with a list of around 400. In 2007, the U.S. and EU called on WTO members to eliminate tariffs no later than 2013 on 43 EG identified by the World Bank as being “climate friendly.” Last December, the U.S. Trade Representative signaled support for a plurilateral agreement within the WTO to lower trade barriers to EGs.
The World Bank’s 43 EGs, identified at the WTO-recognized six-digit HS code level used to specify tariffs and track trade, fall into seven categories:
1. Air Pollution Control
2. Management of Solid and Hazardous Waste
3. Renewable Energy Plant
4. Heat and Energy Management
5. Waste Water Management and Potable Water Treatment
6. Cleaner or More Resource Efficient Technologies and Products
7. Environmental Monitoring, Analysis, and Assessment Equipment
Trouble is, the six-digit codes lump together the environmentally good, bad and ugly, drawing no distinction drawn between, for instance, clean and dirty coal technologies. The World Bank proposes a “systematic alignment of harmonization standards.” The World Bank’s 2007 report is at http://bit.ly/bT13xv.
Suggesting the magnitude of realigning HS is the multi-year “mapping exercise” by the International Center for Trade and Sustainable Development (ICTSD) that would “set the stage” for customs classification of renewable energy, buildings, and transport goods. Reports to date are at http://bit.ly/96iBsH.
Of course, the HS codes also frustrate buyers and sellers trying to gauge EG market demand. Fortunately, there are other sources for detailed market information — such as The Datamyne bill of lading database — for the U.S, the largest import market for EG, taking in 13% of an estimated $215 billion in global exports in 2008. More global EG trade numbers are in a December 2009 Special Report from U.S. Sen. Ron Wyden, at http://bit.ly/a7oxCZ. To learn more about how The Datamyne can help research the U.S. import market, contact us.
What’s the difference between a pipe used in treating wastewater and a pipe that transports oil? A hotplate and a solar cooker? A refrigerator that’s energy-efficient versus an energy hog? In the Harmonized Commodity Coding and Description System (HS) — at the six-digit level — absolutely nothing. And that’s a problem for policymakers who would encourage global trade in environmental goods, or EGs.
World Trade Organization (WTO) members have worked for years to agree on EGs that would benefit from trade liberalization, starting with a list of around 400. In 2007, the U.S. and EU called on WTO members to eliminate tariffs no later than 2013 on 43 EG identified by the World Bank as being “climate friendly.” Last December, the U.S. Trade Representative signaled support for a plurilateral agreement within the WTO to lower trade barriers to EGs.
The World Bank’s 43 EGs, identified at the WTO-recognized six-digit HS code level used to specify tariffs and track trade, fall into seven categories:
1. Air Pollution Control
2. Management of Solid and Hazardous Waste
3. Renewable Energy Plant
4. Heat and Energy Management
5. Waste Water Management and Potable Water Treatment
6. Cleaner or More Resource Efficient Technologies and Products
7. Environmental Monitoring, Analysis, and Assessment Equipment
Trouble is, the six-digit codes lump together the environmentally good, bad and ugly, drawing no distinction drawn between, for instance, clean and dirty coal technologies. The World Bank proposes a “systematic alignment of harmonization standards.” The World Bank’s 2007 report is at http://bit.ly/bT13xv.
Suggesting the magnitude of realigning HS is the multi-year “mapping exercise” by the International Center for Trade and Sustainable Development (ICTSD) that would “set the stage” for customs classification of renewable energy, buildings, and transport goods. Reports to date are at http://bit.ly/96iBsH.
Of course, the HS codes also frustrate buyers and sellers trying to gauge EG market demand. Fortunately, there are other sources for detailed market information — such as The Datamyne bill of lading database — for the U.S, the largest import market for EG, taking in 13% of an estimated $215 billion in global exports in 2008. More global EG trade numbers are in a December 2009 Special Report from U.S. Sen. Ron Wyden, at http://bit.ly/a7oxCZ. To learn more about how The Datamyne can help research the U.S. import market, contact us.
Monday, April 19, 2010
Miss Swaziland's "Dubai"
There’s a name for re-exported, pre-owned, repurposed cars
News that General Motors sold more cars in China than in the U.S. in March sent us to the data on U.S. car imports and exports. Among other searches, we looked for 2009’s top destinations for U.S. “passenger motor vehicles with spark ignition internal combustion piston engines” — gasoline-fueled cars in the Harmonized Tariff System — and found, not surprisingly, NAFTA trading partners Canada and Mexico in the lead (see the Datamyne Top 5 Destinations for U.S. Car Exports). What did surprise was the United Arab Emirates in fifth place … until we realized the data included new and used cars. Filter out the used cars, and the top 5 markets for U.S. car exports last year line up as Canada, Mexico, Germany, Saudi Arabia, with China taking the fifth slot (keep in mind that GM’s China sales are through its Chinese joint venture).
Focus only on used vehicles, and the UAE, home to one of the world’s major used-car marts, moves to the top of the list. The Dubai Cars and AutoMotive Zone (DUCAMZ) opened in April 2000 with the objective of re-exporting used cars, SUVs, and mini-vans, and their parts. The re-exports are commonplace in south Asia and Africa, many repurposed as taxis and kombis or mini-buses for hire. Indeed, in some markets, a “Dubai” is slang for “pre-owned vehicle,” as the headline on a story in the Times (Swaziland) about one of the newly-crowned Miss Swaziland’s prizes, a pre-owned Opel Astra, indicates. (DUCAMZ was in the news earlier this month as the zone’s car dealers protested the implementation of a new customs declarations system, now temporarily suspended.)
As with Miss Swaziland’s Dubai, the DUCAMZ re-exports are mostly Japanese makes and models. With its huge domestic market for used cars, the U.S. has not been a major source. But that was changing: U.S. used vehicle exports overall were up by more than 50% in 2008 — before the global financial crisis threw the trend into reverse. Based on January-February trade data, it looks like exports are climbing again, but not yet to the heights of 2008.
News that General Motors sold more cars in China than in the U.S. in March sent us to the data on U.S. car imports and exports. Among other searches, we looked for 2009’s top destinations for U.S. “passenger motor vehicles with spark ignition internal combustion piston engines” — gasoline-fueled cars in the Harmonized Tariff System — and found, not surprisingly, NAFTA trading partners Canada and Mexico in the lead (see the Datamyne Top 5 Destinations for U.S. Car Exports). What did surprise was the United Arab Emirates in fifth place … until we realized the data included new and used cars. Filter out the used cars, and the top 5 markets for U.S. car exports last year line up as Canada, Mexico, Germany, Saudi Arabia, with China taking the fifth slot (keep in mind that GM’s China sales are through its Chinese joint venture).
Focus only on used vehicles, and the UAE, home to one of the world’s major used-car marts, moves to the top of the list. The Dubai Cars and AutoMotive Zone (DUCAMZ) opened in April 2000 with the objective of re-exporting used cars, SUVs, and mini-vans, and their parts. The re-exports are commonplace in south Asia and Africa, many repurposed as taxis and kombis or mini-buses for hire. Indeed, in some markets, a “Dubai” is slang for “pre-owned vehicle,” as the headline on a story in the Times (Swaziland) about one of the newly-crowned Miss Swaziland’s prizes, a pre-owned Opel Astra, indicates. (DUCAMZ was in the news earlier this month as the zone’s car dealers protested the implementation of a new customs declarations system, now temporarily suspended.)
As with Miss Swaziland’s Dubai, the DUCAMZ re-exports are mostly Japanese makes and models. With its huge domestic market for used cars, the U.S. has not been a major source. But that was changing: U.S. used vehicle exports overall were up by more than 50% in 2008 — before the global financial crisis threw the trend into reverse. Based on January-February trade data, it looks like exports are climbing again, but not yet to the heights of 2008.
Friday, April 9, 2010
U.S. Export Market Sourcebook
ITA annual on FTAs, top trading partner nations available for download
The International Trade Administration’s Top U.S. Export Markets, published annually since 2007, consists of two-page fact sheets on 14 current or pending free trade agreements and on 50 countries (plus the European Union) that are leading markets for U.S. exports. The fact sheets cover basic economic data for the past three years, such as gross domestic product, exports and imports, trade balance with the U.S., and the level of foreign direct investment. Charts show the leading U.S. exports to each trade partner by industry category, U.S. market share, and other trade information. Download your copy at http://bit.ly/a7rCvm
The International Trade Administration’s Top U.S. Export Markets, published annually since 2007, consists of two-page fact sheets on 14 current or pending free trade agreements and on 50 countries (plus the European Union) that are leading markets for U.S. exports. The fact sheets cover basic economic data for the past three years, such as gross domestic product, exports and imports, trade balance with the U.S., and the level of foreign direct investment. Charts show the leading U.S. exports to each trade partner by industry category, U.S. market share, and other trade information. Download your copy at http://bit.ly/a7rCvm
Tuesday, April 6, 2010
Clock Stops on Countdown to Tariffs
Brazil, U.S. reach agreement in 11th-hour talks
Brazil’s threat to impose stiff tariffs on a range of U.S. products and commodities as of April 7 has been withdrawn thanks to negotiations that began April 1 and concluded with an agreement announced April 6.
The tariffs were to be in retaliation for U.S. government subsidies to American cotton growers.
In exchange for Brazil’s agreement not to impose countermeasures, the U.S. agreed to work with Brazil to establish a fund of approximately $147.3 million per year on a pro rata basis to provide technical assistance and capacity building. Under terms to be agreed by the U.S. and Brazil in a Memorandum of Understanding, the fund would continue until passage of the next Farm Bill, or mutual agreement on a solution to the cotton dispute, whichever is sooner.
The U.S. also agreed to make some near-term modifications to the operation of the GSM-102 Export Credit Guarantee Program, and to take steps to clear the way for U.S. imports of fresh beef from the Brazilian state of Santa Catarina.
Following these initial steps, the U.S. and Brazil will continue discussions with a view to agreeing on a process by June that resolves the cotton dispute. See the full text of the U.S. Trade Representative release at http://bit.ly/auwN0A
Update: 4/21/10 Brazil’s Foreign Relations Ministry announced it will suspend tariff retaliation on U.S. goods 60 days while it studies the U.S. offer of compensation for domestic cotton subsidies.
Brazil’s threat to impose stiff tariffs on a range of U.S. products and commodities as of April 7 has been withdrawn thanks to negotiations that began April 1 and concluded with an agreement announced April 6.
The tariffs were to be in retaliation for U.S. government subsidies to American cotton growers.
In exchange for Brazil’s agreement not to impose countermeasures, the U.S. agreed to work with Brazil to establish a fund of approximately $147.3 million per year on a pro rata basis to provide technical assistance and capacity building. Under terms to be agreed by the U.S. and Brazil in a Memorandum of Understanding, the fund would continue until passage of the next Farm Bill, or mutual agreement on a solution to the cotton dispute, whichever is sooner.
The U.S. also agreed to make some near-term modifications to the operation of the GSM-102 Export Credit Guarantee Program, and to take steps to clear the way for U.S. imports of fresh beef from the Brazilian state of Santa Catarina.
Following these initial steps, the U.S. and Brazil will continue discussions with a view to agreeing on a process by June that resolves the cotton dispute. See the full text of the U.S. Trade Representative release at http://bit.ly/auwN0A
Update: 4/21/10 Brazil’s Foreign Relations Ministry announced it will suspend tariff retaliation on U.S. goods 60 days while it studies the U.S. offer of compensation for domestic cotton subsidies.
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