The World Is Open
For Business. Yours.
An Overview of the
U.S. Commercial Service
Why Should You Export?
Opportunity
95% of the world’s consumers are
outside of the U.S.
Diversification
Exporting helps to diversify your client base
and take advantage of regional growth
Competition
If you are not exporting, it’s highly likely your
competitors are selling abroad or will be soon
Business
Facilitation
Free trade agreements, the Internet, improved
transportation, and Government assistance
Economic Impacts of Exporting
•
•
•
Exports help diversify the U.S. economy
U.S. manufactured exports support
6,000,000 American jobs
Trade generates $9,000
more in purchasing power for
the average American family
•
Companies that export are
•
Jobs related to exports pay 15% more
8.5% less likely to go out of business
Market Diversification
•
•
•
Extend product life cycles
Counter unstable economic
markets
Ability to maintain production
year-round
o Seasonal differences
o Consistent sales
Exporters Are Small Business
97% of U.S. exporters are
SMEs with < 500 employees
75% of exporters have < 20
employees
7 in 10 new U.S. jobs are
created by small businesses
Exports
& Hawaii
Hawaii’s Top Exports
Tourism Services
Cosmetics / Skin Care
Education & Training
Environmental Technologies
Agriculture & Processed Foods
Hawaii’s Top Exports
Hawaii Exports Based on Origin of Movement
HTS
Description
22
18
9
76
12
20
10
42
95
33
93
30
91
92
Beverages
Cocoa
Spices/Coffee And Tea
Aluminum
Misc Grain/Seed/Fruit
Preserved Food
Cereals
Leathr Art;Saddlry;Bags
Toys And Sports Equipmt
Perfumery/Cosmetic/Etc
Arms And Ammunition
Pharmaceutical Products
Clocks And Watches
Musical Instruments
US Dollars
% Share
%Δ 08/07
2007
2008
2007
2008
2008/2007
42,204,853
15,944,232
7,304,677
7,361,090
3,805,825
4,553,234
1,486,206
2,862,885
2,413,336
2,720,209
5,645,967
1,852,556
1,010,997
2,648,193
37,569,727
16,599,114
7,018,267
6,900,668
5,133,636
5,068,279
3,281,321
2,978,381
2,872,111
2,654,592
1,850,516
1,761,063
1,681,710
1,633,804
7.54
2.85
1.3
1.31
0.68
0.81
0.27
0.51
0.43
0.49
1.01
0.33
0.18
0.47
3.9
1.72
0.73
0.72
0.53
0.53
0.34
0.31
0.3
0.28
0.19
0.18
0.17
0.17
-10.98
4.11
-3.92
-6.25
34.89
11.31
120.79
4.03
19.01
-2.41
-67.22
-4.94
66.34
-38.3
Hawaii Export: Coffee
Who is buying? Top Global Importers
Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes
Rank
Reporting Country
United States Dollars
2006
Reporting Total
2007
14,297,492,235
17,053,983,357
2,346,555,380
2,780,324,135
1
Germany
2
France
922,715,741
1,135,345,616
3
Italy
871,668,372
1,091,582,381
4
Japan
990,582,099
1,007,536,566
5
Belgium
576,881,197
616,942,661
6
Canada
633,235,711
681,828,070
7
Spain
485,158,540
615,529,732
8
United Kingdom
420,201,477
481,947,242
9
Switzerland
252,695,531
326,401,485
10
Austria
267,985,342
386,423,340
Hawaii Export: Coffee
Where is U.S. coffee going? Top U.S. exports
Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes
US Dollar
% Change
Partner
Ranking
Country
2007
2008
2008/2007
World
544,540,906
617,324,345
13.37
1
Canada
402,913,519
455,420,320
13.03
2
Japan
44,294,196
55,704,640
25.76
3
Russia
233,570
23,024,121
9757.48
4
Singapore
11,451,807
13,562,164
18.43
5
China
10,656,153
13,014,006
22.13
6
Germany
35,747,261
12,714,003
-64.43
7
South Korea
5,923,339
9,627,450
62.53
8
Mexico
3,355,982
5,678,248
69.2
9
Taiwan
1,996,288
3,645,264
82.6
10
Bermuda
1,581,979
1,694,163
7.09
Hawaii Export: Coffee
Where is Hawaii coffee going? Top HI exports
Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes
US Dollar
Rank
Country
World
2007
% Change
2008
2008/2007
7,117,465
6,966,482
-2.12
1
Japan
5,530,968
5,050,100
-8.69
2
Sweden
1,212,584
1,244,283
2.61
3
Canada
91,023
317,836
249.18
4
Germany
204,835
249,702
21.9
5
South Korea
28,838
49,679
72.27
6
United Kingdom
0
18,000
0
7
Taiwan
32,901
10,169
-69.09
8
Australia
12,566
10,112
-19.53
9
Finland
0
9,277
0
10
France
0
4,800
0
Hawaii’s Best Export Markets
Japan
China
India
Australia
South Korea
Malaysia
Hong Kong
Leveraging Free
Trade Agreements
Free Trade Agreements
• FTAs help open foreign markets
o
Reduced trade barriers
(tariffs, quotas, etc.)
o
Strengthen legal protections
• Promote fair competition
• Address trade issues
• Bring costs down for U.S. consumers
Free Trade Agreements
Topics of FTA Negotiations
• Opening Sectors to Competition
• Improving IPR Protections
• Enhancing Labor Rights
• Dispute Settlement
• Environmental Standards
• Government Procurement
• Enhancing Investment Rules
• Improving Customs Facilitation
Free Trade Agreements
Free Trade Agreements
ISRAEL
JORDAN
Free Trade Agreements
Country
NAFTA
Canada
Mexico
CAFTA-DR
Costa Rica
2007 MMUSD
332,499
213,118
119,381
21,274
4,224
2008 MMUSD
353,931
222,424
131,507
23,922
5,047
Percent Change
6.45%
4.40%
10.20%
12.45%
19.50%
Dominican Rep
Guatemala
Honduras
Nicaragua
El Salvador
5,793
3,872
4,327
846
2,209
6,293
4,493
4,699
1,030
2,357
8.60%
16.00%
8.60%
21.70%
6.70%
Australia
17,916
20,948
16.90%
Bahrain
565
779
37.80%
Chile
7,610
11,366
49.40%
Israel
9,940
10,238
3.00%
Jordan
831
904
8.70%
Morocco
1,333
1,506
12.90%
Oman
1,034
1,380
33.40%
Peru
3,764
5,686
51.10%
Singapore
Total
23,576
420,348
25,655
456,319
8.80%
8.60%
Free Trade Agreements
U.S - Korea FTA, Pending
• Model for new Asia FTAs
• 95% of U.S. consumer & industrial
products will enter duty-free
• 67% of agricultural exports will
be immediately duty-free
• Remaining tariffs eliminated <10 years
• Hawaii: agricultural / food products, tourism
Going Global
Connecting with International Markets
Are You Export Ready?
• Domestic Success?
• Production Capacity?
• Financial Resources?
• Management Commitment?
• International Plan with Goals?
• Know-how? (shipping & methods of payment)
Common Export Mistakes
• Lack of Export Business Plan
• Low commitment to exporting
• Neglecting export customers
for local customers
• Reliance on inadequate partnerships
• Failure to modify products & methods to accommodate
foreign regulations and preferences
Determine Product Potential
• Examine Domestic Market Success
• Assess Unique or Important
Product Features
• International Market Research
• Where are International Hits
Coming from on your Website? Target markets?
• Where are Your Competitors Selling?
Develop An Export Strategy
Focus Your Efforts!
• Be PRO-ACTIVE & REALISTIC
about your ability to expand
• Define your resource limitations
(money, personnel, and time)
• Identify a few target markets
• Evaluate target markets, customers, distribution channels
• Evaluate future profits & opportunities to expand business
• Develop an entry strategy for each market
Basic Guide to Exporting
• How to identify the best markets
• Financing export transactions
• Best methods to handle orders
and shipments
• Case studies of successes
• Sources of free or low-cost
export counseling
• $19.95 online @ www.export.gov
An Overview of the
U.S. Commercial Service
How the U.S. Government Can Help
U.S. Commercial Service
Creating Prosperity Through Global Trade
• A global network in more than 80 countries of the best
trade professionals in the world
• Our global presence and international marketing expertise
helps U.S. companies compete & win in global markets
• Our Goal - promote economic prosperity, enhance job
creation, and protect U.S. commercial interests abroad
Our Services
Four Ways to Grow Your International Sales
Market Research
Trade Events
International Partners
Consulting & Advocacy
Our Services: Market Research
Target the Best Markets with Our World Class Research
• Market Research Library (FREE) – over 100,000
country and industry-specific market reports, web
sites, events, and trade directory listings
• Country Commercial Guides (FREE) – annual
U.S. Embassy reports on the business, economic,
and political environment as it affects U.S.
business and foreign investments
• Customized Market Research – personalized
report prepared specifically for your company with
information that answers your specific international
business questions
* Find these reports and more at www.export.gov
Our Services: Trade Events
Promote Your Product or Service to Pre-Screened Buyers
• Trade Missions – face-to-face meetings with
pre-screened partners, country briefings, logistical
support, and counseling
• International Buyer Program – brings thousands
of foreign buyers to U.S. trade shows each year
• Certified Trade Fairs – the best international
trade shows with access to thousands of buyers
and pre-screened matching
• Single Company Promotion – pre-screened
invitations to help you promote your
products/services
Our Services: Find a Partner
Meet the Best Buyers, Distributors, and Agents
• Gold Key Service – one-on-one meetings with
pre-screened contacts in your desired market
• International Partner Search – a detailed list of
potential partners interested in your product/service
• International Company Profile – low-cost due
diligence and credit check on buyers & distributors
• Featured U.S. Exporter (FUSE) – on-line listing
featuring your company in the market of your choice
• Commercial News USA – official U.S. trade
magazine that promotes your product or service
to over 400,000 international buyers
Our Services: Consulting
Get Personalized Advice at Every Stage of Exporting
• Counseling – your local office that can help you
with your export strategy and obtaining financing
• Resolve Trade Issues – we can help resolve
regulatory hurdles and recover payment
• Platinum Key Service – customized, long-term
support to help you achieve your business goals
• Advocacy – U.S. diplomatic assistance to help
level the playing field for your business
Leverage Our Additional Resources
www.Export.gov – Your U.S. Trade Portal
• Export basics, market research, HS & schedule B numbers
• Information on international finance, logistics, and standards
www.Export-U.com – FREE export tutorials
Trade Information Center - 1.800.USA.TRADE
• Open Monday through Friday until 6pm EST / 12pm Hawaii time
• Get immediate answers to your trade questions
• Information on tariffs & duties, customs procedures, legal
requirements and standards, government assistance programs
Business Information Centers
• China: www.export.gov/china
• India: www.export.gov/india
• Middle East / North Africa: www.export.gov/middleeast
Cost of Services
Small
Company
New
Exporter
Discount
Large
Company
Local Counseling
FREE
FREE
FREE
Market Research Reports
FREE
FREE
FREE
Country Commercial Guides
FREE
FREE
FREE
Export.gov Information
FREE
FREE
FREE
1.800.USA.TRADE
FREE
FREE
FREE
Gold Key (Matchmaking)
$700
$350
$2,300
International Company Profile (Due Diligence)
$600
$350
$900
International Partner Search (Prequalified contacts)
$550
$350
$1,400
Featured U.S. Exporter (Overseas web promotion)
$150
$75
$300
Our Services
Commercial News USA (global print advertising)
www.thinkglobal.us/advertiser/rates.php
Note: A small company is defined as employing 500 employees or less. Fees vary for
Trade Missions, Single Company Promotions, and the Platinum Key Service.
Our Strategic Partners
Our Partners help you export by:
• Conducting joint outreach events
• Leveraging training and education
• Reaching exporters through
communication and marketing
• Leading trade missions
• Providing global contacts
What Our Clients Have To Say…
“Using the U.S. Commercial Service’s foreign market research,
we now export to more than 70 countries and have received a
presidential award for our export success.”
Ampro Electronics, Los Angeles, CA
“Trade shows supported by the U.S. Commercial Service are a
great way to reach the right foreign buyers.”
Artcrete, Natchitoches, LA
“Thanks to support from trade specialists at the U.S. Embassy,
we not only saved jobs, but continue to increase our exports.”
Ford Meter Box, Wabash, IN
“In only six months, local trade specialists helped me get
quality distributors covering 13 foreign markets.”
Excel Holdings, Leesburg, VA
Mahalo!
John Holman, Director
Hawaii Export Assistance Center
www.buyusa.gov/hawaii
808.522.8040 or
808.522.8041
www.export.gov
1.800.USA.TRADE