UPDATE
The new year for MBITA and TradePort is starting strong with two leading consultants in global trade and real estate joining as members.
The issue again features our new trade finance column, the NEI update as well as some wise words from Ayse Oge on service exports in her reoccurring column on marketing in the global marketplace.
Also, check out our 'upcoming events' section with featured conferences on the BRICS countries and the booming Latin American marketplace. We are now accepting speaker submissions for these events! Enjoy!
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 Newport Board Group.
Newport Board Group is a national professional services firm of partners who are highly experienced operating leaders who provide business advisory services. They have led businesses, worn many operating hats and experienced many significant M&A and capital transactions. All of their partners have deep experience building growth companies and helping them through transition.
New Member
Bernice Brubeck-Wong
BB Wong has owned and operated All About Properties / Brubeck Wong Realtors in Santa Cruz since 1977. She continually updates her education so she can help her clients make informed decisions whether they are buying or selling property along the Monterey Bay or around the globe. An active member of the Asian Real Estate Association of America (AREAA) BB is linked to over 400,000 real estate agents from 115 different countries.
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.
Service Exports
by Ayse Oge
The United States is the largest services trading country in the world, with $1 trillion worth of two-way trade in 2011 and a services trade surplus of $179 billion (up 23% from 2010). The Bureau of Economic Analysis' data shows that in 2010, the U.S. had a trade surplus of $57 billion with Asia-Pacific region, of $44 billion with the European Union, and of $35 billion with the countries covered by NAFTA (Canada and Mexico).
The service sector accounts for about 70 percent of the U.S.' GNP and 75 percent of overall employment, which validates the importance of service exports to the whole U.S. economy. In 2011, American exports of services in technology and entertainment, including tourism to this country, were worth $604.9 billion. Exportable services such as education, insurance, telecommunications, and business, professional, and technical services have also performed very well and have even expanded since the second quarter of 2008.
Much of America's service success comes from the market-access provisions negotiated in bilateral trade agreements. Because the U.S. has few barriers to the import of services, a huge benefit comes from provisions in new trade agreements providing American firms access to overseas services markets. For example, the U.S.-South Korea pact signed by President Obama recently entered into force, giving the U.S. access to South Korea's $580 billion services market. American firms are already benefiting in sectors ranging from legal services to information and communications technology. The Columbia and Panama agreements will open those countries' services markets wider as well.
There are several important features that differentiate exporting services from exporting products:
- Services are more intangible than products; therefore, communicating a service offer is much harder than presenting a product offer. Suppliers of services need to pay special attention to how they present a service offer to the prospective buyer..
- Selling services requires personal interaction with the buyer, and the seller has to be knowledgeable about cultural differences and nuances of the country.
- Services are much harder to standardize than products. Service activities need to be adjusted to the needs and expectations of the customer.
Since the majority of service exports are meant to act as a support system for product exports, service businesses can pair up with product exporters to take bundled goods/services to the international marketplace. Service companies that are independent from products may need to look to export markets that are similar to ones in the U.S., or customize their services for that particular foreign market. Eximbank has expanded their services to service exporters and has large scale programs that are aimed at U.S. construction, design, engineering, and architectural firms to assist in getting foreign contracts.
The United States is a services trading powerhouse, and we need to embrace these dynamic new opportunities to continue building our existing services surplus.
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.
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.
Ex-Im Approves $87.1 Million Guarantee to Finance Export of American-made Satellite to Spain
Media Contact: Lawton King (202-565-3200)
Washington, DC - Jan. 18, 2013 - The Export-Import Bank of the United States (Ex-Im Bank) has authorized an $87.1 million guarantee of a loan extended by Credit Agricole and other European lenders to Hispasat Canarias S.L.U., a Hispasat S.A. (Hispasat) subsidiary based in Madrid, Spain, that will finance the assembly and purchase of a satellite to be manufactured by Orbital Sciences Corporation (Orbital) of Dulles, Va.
The guarantee, which is Ex-Im Bank's third transaction with Hispasat, will support approximately 600 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.
"This transaction is yet another example of our commitment to support high-tech jobs throughout America," said Ex-Im Bank Chairman and President Fred P. Hochberg. "The 'Made in America' brand is second to none, and it is our job to ensure it always has an equal footing with competitors in the international market."
Established in 1989, Hispasat is the fourth largest western European satellite operator and the eighth largest operator in the world. It currently manages a constellation of seven active satellites and plans to expand its fleet. Additionally, an Ex-Im Bank transaction involving the company was recognized as "Deal of the Year" at the 2012 Ex-Im Bank Annual Conference.
The Amazonas-4A satellite, a Ku-band satellite equipped with 24 transponders, is expected to launch in 2014 and will occupy the company's orbital slot over Brazil. It will provide coverage to the Americas and respond to the increasing demand of direct-to-home and high-definition television broadcasts.
Orbital Sciences Corporation was founded in 1982 and specializes in designing, building, testing and operating small- and medium-size satellites, rockets and other space systems. The company provides its space systems products to commercial customers, such as Hispasat, as well as to U.S. government agencies, including NASA, the Department of Defense, and intelligence agencies. Orbital employs almost 4,000 people, primarily in Virginia and Arizona, with other smaller locations around the country.
"Ex-Im Bank has played a critical role in the financing of several high-value commercial satellites built by Orbital," said Garrett Pierce, vice chairman and chief financial officer of Orbital. "Ex-Im Bank's participation has enabled us to compete on a level playing field around the world and win new export-related business. In addition, our success in capturing new orders of state-of-the-art spacecraft provides hundreds of high-tech and high-wage jobs for Orbital's workforce and throughout our extensive network of U.S.-based suppliers."
Ex-Im Bank authorized a record-breaking $1.4 billion to finance exports of American-made telecommunications satellites in FY 2012. In the first quarter of FY 2013, Ex-Im Bank has already authorized $516.9 million.
View press release source.
U.S. Export Fact Sheet
November 2012 Export Statistics Released January 11, 2013
EXPORT OVERVIEW:
- With the release of the November 2012 U.S. International Trade in Goods and Services report by the Department of Commerce's U.S. Census Bureau and the Bureau of Economic Analysis, U.S. exports of goods and services increased by 1.0 percent in November 2012 to $182.6 billion since October 2012, while imports increased 3.8 percent to $231.3 billion over the same period. November export numbers included increases in passenger cars, telecommunications equipment, and travel and tourism exports.
- U.S. goods and services exports in the first eleven months of 2012 are up 4.5 percent or $86.0 billion from the same period of 2011 to reach $2.0 trillion, and we are on track to exceed 2011's record export numbers of $2.1 trillion.
- In November 2012, the monthly U.S. goods and services trade deficit worsened by 15.8 percent to $48.7 billion when compared to October 2012. Year to date however, the trade balance has improved by 1.4 percent to $501.1 billion from $508.1 billion year to date 2011, or $7 billion.
- In November 2012, the average import price per barrel of crude oil was $97.45 per barrel, down from the $99.75 per barrel recorded in October 2012. The quantity of crude oil imported was also down 6.4 percent from September.
TRADE SPORTLIGHT: U.S. Trade with the European Union
- Although recent U.S. export growth to the European Union has been sluggish, the 27 members of the European Union still represented more than 18 percent of U.S. merchandise exports in 2011. Through the first eleven months of 2012, U.S. exports to the European Union were $243.5 billion.
- Recovery following the recession has been slow, with U.S. merchandise exports to the European Union growing by only 21.7 percent between 2009 and 2011 to reach $268.5 billion in 2011. This is compared to a growth rate of 45.1 percent for U.S. goods exports to the rest of the world over this period. However, although this growth rate is relatively small, this still represents a high value of trade with goods exports increasing 47.9 billion between 2009 and 2011
- The European Union is an important market for high value U.S. goods, with the largest U.S. export categories to the EU-27 market being chemicals, transportation equipment, computer and electronic products and machinery.
- In 2011, the largest trading partners for U.S. merchandise among European Union members were the United Kingdom ($55.9 billion), Germany ($49.2 billion), the Netherlands ($42.4 billion), Belgium ($29.9 billion), and France ($27.8 billion)
- The European Union also remains an important market for U.S. services exports, with U.S. exports of services totaling $188.8 billion in 2011, up 8.4 percent from 2010. In 2011, major European markets for U.S. services exports included the United Kingdom ($52.7 billion), Ireland ($28.3 billion), Germany ($25.5 billion), and France ($17.8 billion).
- Despite weak economic conditions for the EU as a whole, there are bright spots for U.S. merchandise exports in 2012. Through the first eleven months of 2012, the fastest growing European Union markets for U.S. merchandise exports were led by seven countries: Cyprus (up 71 percent compared to the same period of 2011), Luxembourg (up 24 percent), Austria (up 24 percent), Slovakia (up 15 percent), France (up 11 percent), the Czech Republic (up 10 percent), and Hungary (up 6 percent).
- U.S. merchandise exports to European markets outside of the European Union have also improved significantly in 2012. Through the first eleven months of 2012, U.S. merchandise export have shown double-digit growth to Gibraltar (up 79 percent), Kosovo (up 51 percent), Azerbaijan (up 50 percent), Russia (up 27 percent), Albania (up 17 percent), and Switzerland (up 11 percent).
U.S. Export Fact Sheets are prepared by ITA's Office of Trade and Industry Information, (202) 482-3809.
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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