Economic Development Agency | Monterey, CA

World Tradewinds November - December, 2012 -Issue N. 167

UPDATE

As we roll up 2012 into the annals of historical relevance, MBITA continues to emphasize job creation by providing trade promotion services to SMEs everywhere for successful bilateral trade and development transactions.

This issues talks about the ‘branding’ process to the global marketplace of one of the most unique regions in the world, and a new MBITA member with impressive legal clout, and a report on another Chinese business delegation visiting California…and don’t miss our new trade finance section as well as our ongoing columns on the NEI and Ayse’s corner.

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President
Tony Livoti
MBITA

Vice President
Shay Adams
AIM Medical Sales

Members

Dr. Edward Valeau
Els Group LLC
Hartnell College
President Emeritus

Marcelo Siero
IdeasSiero

Jim Faith
Jim Faith & Associates

Cristina Polesel
MBITA
General Manager

This newsletter has been created by MBITA's editor
Cristina Polesel
cristina@mbita.org

New Member

MBITA welcomes new member Royse Law Firm, PC.

Whether a company discovers that it needs a great law firm to act as its trusted legal advisor on simple or routine legal matters or to help resolve more complex legal issues, such as mergers and acquisitions, international joint ventures or commercial contracts, clients in the Monterey Bay area and Silicon Valley consult the Royse Law Firm, PC (“RoyseLaw").

MBITA members have a diverse set of legal needs, including corporate, tax, employment, estate planning, technology, commercial contracts, litigation, international law and real estate.

RoyseLaw is uniquely positioned to offer that support to closely held, emerging growth and middle market companies through its 17 lawyers located in offices in San Francisco, Palo Alto and Los Angeles.

RoyseLaw’s clients include companies in the technology and energy sectors as well as base economy businesses such as agriculture, food services, real estate and manufacturing. Many of RoyseLaw’s clients are US based multi-national companies, with foreign manufacturing, development and distribution.

Royselaw also counsels closely held and family businesses (which range from small to large) due to their unique need for integrated legal solutions that emphasize tax efficiencies. RoyseLaw’s clients in the Monterey Bay and the Silicon Valley area value experience, expertise and affordable legal solutions.

Contact:
Roger Royse
Attorney at Law
Royse Law Firm, PC
Tel. (650) 813-9700
email: rroyse@rroyselaw.com
Web: www.rroyselaw.com

The Shanxi Province of China Visits Los Angeles

On September 24th, in Los Angeles, Ca., MBITA/TradePort co-promoted an event with Chinamex which is the world's largest trading platform for Chinese manufactured goods outside of China. This event focused around a delegation of eight different companies from the Shanxi, Province of China who were featured guests.

The Shanxi province is centered on heavy industries such as coal and chemical production, power generation, and metal refining, however, the delegation participating in this conference in Los Angeles represented the textile, apparel and glassware industries.

MBITA/Tradeport arranged presentations from three different American companies in California for the event discussing the difference in business cultures, the small business marketing channels that exist for bilateral trade and investment between the U.S. and China and the nature of the U.S. apparel industry and its relationship with China.

The presenters arranged by MBITA/TradePort were Frances Harder, of Fashion Business Inc. (FBI) who discussed trends in the apparel industry as well as the nature of California’s unique apparel business culture, Bob Parker of Lease Station which is a nationwide leader in providing business solutions for technology equipment manufacturers and distributors, and a very lively presentation from Patrick McGinnis, a private attorney and entrepreneur in the travel and tourism industry on the challenges that Chinese and American businesspeople face when conducting bilateral trade and investment.

Contact the MBITA office for more details on this Shanxi, China delegation.

Branding the Monterey Bay Region to the Global Marketplace

The Monterey Bay International Trade Association (MBITA)and TradePort.org held a special event entitled Branding the Monterey Bay Region to the Global Marketplace on Oct. 30th at the Cocoanut Grove at the Santa Cruz Beach Boardwalk in Santa Cruz, Ca.

MBITA and TradePort.org organized the event under the leadership of Congressman Sam Farr to develop a collaborative strategy from stakeholders throughout the tri-county region of the Monterey Bay to ‘brand’ the Monterey Bay region for the domestic and global marketplace.

Leaders from economic development organizations and small businesses located throughout the tri-county region of the Monterey Bay gave presentations and had interactive discussions on this mission goal.

With a beautiful rural landscape as a backdrop, the Monterey Bay region leads the world in industries such as wine, specialty crops, sustainable agriculture, agro-technology and marine biology, not to mention its world renowned educational institutions (NPS, DLI, MIIS, UCSC) and home to the ‘language’ capital of the world, Monterey, Ca.

The event was sponsored by University of California, Santa Cruz (UCSC), the Monterey County Business Council (MCBC), Joint Venture – Monterey Bay (JVMB), Pinpoint China and Umpqua Bank.

Here are quotes from some of the presenters at the event:

“There is something special about a region where it borders the technology center of the world to its north, and the ‘salad bowl of the world on its southern borders. Throw in the language capital of the world as well as one of the top marine biology centers and wine growing regions on the globe, combined with its cutting edge entrepreneurial efforts in clean-tech and IT and some of the leading research and language institutions in the world, not to mention its unparalleled natural beauty, and you have the Monterey Bay region”, stated Tony Livoti of MBITA.

“UC Santa Cruz is ranked third in the world for the impact of our research. Our academic and research strengths in areas such as sustainable agriculture, marine science and ocean health, engineering and alternative energy and health sciences benefit the Monterey Bay region's economy in significant ways and has clearly attracted worldwide attention”, stated Bruce Margon, Vice Chancellor for Research at UC Santa Cruz.

“Triple bottom line solutions provide opportunities to develop a regional identity. We all can embrace it as we attract domestic and international visitors to experience showcase examples of sustainable solutions to the challenges of energy, food, water, waste, and lifestyle that we face here in the Monterey Bay region”, remarked Chris Khan, principal partner in Joint Venture Monterey Bay (JVMB).

“Pinpoint offers the Monterey Bay Region and California Hospitality Merchant Partners direct engagement with 55-million Bank Credit Cardholders from the 20-Bank Partners in Australia, China, India, Singapore and Taiwan, utilizing multi-channel media print and innovative digital IT marketing. The beautiful environment and dynamic business community of the Monterey Bay region will surely be of interest to host our Asia-Pacific Basin Guests”, remarked Tom Gardiner, California representative for Pinpoint.

“Increasingly, the traditional way of marketing each jurisdiction, industry and educational institution in a particular region on its own is failing. Come and learn about the Monterey Bay Economic Partnership and its programs for regional success and how you can be involved”, said Mary Ann Leffel, President of the Monterey County Business Council (MCBC).

“Umpqua Bank is a sixty year old financially strong community bank that puts an emphasis of being of service to companies in our market and we take a hands-on approach in assisting SMEs in developing suppliers and new markets in the international arena with trade finance, currency and export financing solutions. We look forward to working with the dynamic business community of the Monterey Bay region, especially in the wine sector”, states Mark Brody, SVP/Manager Napa CBC & Wine Specialty Group.

Agenda, speaker presentations and bios.

Visit our picture gallery to see photos from this event.
Read news articles about this event.

This event was a follow up to The Monterey Bay - Global Destination for Wine and Tourism with Congressman Sam Farr that was held on April 12 in Monterey.

Ayse's Corner

Ayse's Corner is a feature column of the World TradeWinds eZine'. Ayse Oge is a published author and global trade marketing expert and author of Emerging Markets.

Africa is the New Emerging Market
Trade Boosts Sub-Saharan Economy
by Ayse Oge

In its latest regional forecast, The International Monetary Fund noted that Sub-Saharan Africa’s accelerating economic growth is expected to be broad in 2011. In the IMF’s October 2010 report it was revealed that the growth of the Sub-Saharan region -- which encompasses 47 countries excluding North Africa -- would be 5% this year. The IMF also predicted a 5.5% growth next year. The organization attributed the Sub-Saharan growth mainly to trade with China, as well as other countries in developing sections of Asia and Latin America along with their high levels of reserved and low inflation.

China’s share in Sub-Saharan Africa’s total exports and imports exceeded that between China and most other regions in the world. Over the last 8 to 10 years, China heavily invested in trading oil and mineral in the region, particularly with South Africa, the continent’s largest economy. China also undertook investment projects to improve the infrastructure in terms of dams, bridges and roads. Abebe Selassie, Regional Studies Division Chief in the IMF’s Africa department, said: "The reason why China is interested in Africa is not just for the minerals and oil but because of its high growth."

Europe and the U.S. remain the region’s dominant trading partners. The U.S. is also heavily invested on the continent, at a level that IMF officials say is on par with China. Africa has become an attractive export destination for major U.S. corporations, such as Coca-Cola, when they experienced stagnant sales in North America. As CEO of Coke, Muhtar Kent said: "We will rely on some of poorest nations to generate the 7 to 9 percent earnings growth we promised to our investors." That means from the dukas of Nairobi to the “tuck shops” of Johannesburg, Africa’s mom-and-pop stores are main fronts in Coke’s growth plan, not only for the flagship soda but also for the company’s huge stable of waters, juices and other soft drinks. Coke has become the continent’s largest employer, with 65,000 employees and 160 plants. The current presence and the significance of Coke’s business in Africa are far greater than in India and China.

Here are some facts about Africa for U.S. investors and exporters:

After China and India, Africa is seen as the next emerging billion-person market.
The continent has large niches of consumer spending power.
Tourism and telecommunications along with natural resources are hot industries for investors.

Overall trade will continue to be the main driver of Africa’s growth in the future. But the other essential drivers such as political stability and the business climate, including a prudent exploitation of natural resources and the quality of economic management, are also crucial for Sub-Saharan growth in this century.

Ayse Oge is President of Ultimate Trade, International Trade Consulting, Speaking and Training. Her work has been featured by Fox Business Online, Bloomberg Business Week Online and she was quoted by Investor's Business Daily and American Express Open Business Online. She is the author of “Global Business Guide” and a new book, “World Wise Children,” which helps children develop international skills and qualities needed to create future opportunities and realize their dreams. She is Counselor at SCORE, conducting export seminars and webinars for entrepreneurs and small businesses. She can be reached at oge@earthlink.net

Ayse Oge is President of Ultimate Trade, International Trade Consulting, Speaking and Training. She is also Board Member of California Business Education Association.

Ayse Oge
President
Ultimate Trade LLC
Tel. 818-708-9571
Email: oge@earthlink.net
Web: www.goglobaltowin.com

MBITA would like to introduce a new ongoing section called, ‘Finance for Trade’. Feature articles from the experts in trade finance will comment and inform us of this very important aspect of a successful global business.

Overseas Finance just got Easier

by Daniel Robin, In3 Finance Group and Jim Faith, Trade & Export Finance Online (TEFO)

How can your company or your clients obtain funding in emerging markets these days? How can it be used to promote exports and finance projects?

Working overseas or selling to customers in developing economies has the potential for positive social and environmental impacts. It helps build strong trade partners, creates jobs, allows US companies to pursue growth opportunities and reach new markets. It improves living conditions and quality of life.

In3 Group has developed a platform for banks and borrowers to obtain export finance, working capital lines of credit, or asset-based term loans more reliably than ever before.

For US companies doing business in qualified countries, this platform will

Provide a lower cost of capital than doing business with host country banks
Reduce cycle times – obtain funds faster – and thus improve cash flow
Deliver needed capital to complete more transactions
Build a sustainable competitive advantage

Banks, including US Export-Import Bank’s Delegated Authority Lenders, can decrease overall transaction costs with a nominal investment in information technology that will

Deliver a stream of prequalified leads, with clearer, more complete information up front
Streamline transactions and communications between the US lender, guarantor, borrower and overseas entity
Free up bank officers and others to perform higher-value work. Saves smaller banks or those that are short on trained staff from performing more basic and administrative tasks to collect required information.

In3 Group, established in 1996, is an approved Enterprise Development Network (EDN) and OPIC loan originator, accredited in Moody’s Analytics (Emerging Markets Credit Fundamentals). OPIC is the Federal government’s Development Finance Agency. Contact Daniel Robin at drobin@in3group.net or call 831-761-0700.

Travel and Tourism on Pace for Record Exports in 2012
International Visitor Spending in July 2012 $350 Million More Than July 2011

On September 19 the U.S. Department of Commerce announced that international visitors spent an estimated $13.7 billion on travel to, and tourism-related activities within, the United States during the month of July—$350 million (3 percent) more than was spent in July 2011. Travel and tourism-related exports have increased, on average, more than $1.1 billion a month during the first seven months of 2012.

“The travel data released today shows that tourism remains one of the bright spots in our economy, and the travel and tourism industry is on pace to reach record export levels this year,” said Acting U.S. Commerce Secretary Rebecca Blank. “The Obama Administration’s number one priority remains strengthening our economy and creating jobs, and making the U.S. the top destination for international visitors will help us reach that goal.”

International visitors spent an estimated $10.5 billion on travel and tourism-related goods and services while traveling within the United States in July 2012 – an increase of four percent when compared to last year. These goods and services include food, lodging, recreation, gifts, entertainment, local transportation in the United States, and other items incidental to foreign travel.

Year to date, international visitors have spent an estimated $95.4 billion on U.S. travel and tourism-related goods and services – an increase of more than nine percent when compared to the same period last year.

Also on Septermber 19 the Commerce Department’s Bureau of Economic Analysis (BEA) released Travel and Tourism Satellite Accounts estimates for the second quarter of 2012. These accounts present a detailed picture of travel and tourism activity and its role in the U.S. economy, presenting estimates of spending by tourists, or visitors, on six categories of goods and serviced as well as estimates of the employment generated by travel and tourism and their related industries. Today’s data reveal that real spending on travel and tourism increased at an annual rate of 2.1 percent in the second quarter of 2012 after increasing 4.9 percent (revised) in the first quarter of 2012.

Also September 19 the White House released a progress report from the Departments of State and Homeland Security that outlines the activities underway to meet the President’s goal of boosting the travel and tourism industry in the United States. This report discusses the steps taken to achieve the President’s visa and foreign visitor processing goals and the current progress of these and other measures to significantly bolster international travel and tourism.

These efforts are all part of the National Travel and Tourism Strategy, which the U.S. Departments of Commerce and Interior presented to the president in May, as a blueprint to increase international travel to the United States in order to build on this growing sector of the economy. The strategy lays out concrete steps to be taken in five key areas, in addition to the goal of increasing international visitors to the United States. As part of those efforts, the Commerce Department is continuing to supply the travel and tourism industry with important data, including international arrivals to the U.S., the forecast of international travel to America for more than 30 countries, and estimates of the total impact of travel and tourism on the economy, among other services.

To learn more about Commerce’s efforts to promote travel and tourism within the U.S., visit http://tinet.ita.doc.gov/.

Press release source article

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The National Export Strategy is available also at
http://trade.gov/NEI and http://export.gov.
International Trade Update at
http://www.trade.gov/publications/ita-newsletter/
United States Department of Commerce
Office of Public Affairs - Tel. 202-482-4883
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