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April - May 2014 - Issue N. 175
A Publication of the Monterey Bay International Trade Association (MBITA)

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The Monterey Bay -
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MBITA BOARD OF DIRECTORS

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
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MBITA
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Phone: 1-831-335-4780
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If you would like to publish an article in this newsletter please contact the editor by email.

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



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IN THIS ISSUE

MBITA New Member
Tim Armstrong

MBITA Member
Newport Board Group

If Russia Was on the Right Side of History It Could Become an Economic Power by MBITA President
Tony Livoti

Opportunities in Ukraine. Oil and Security - by MBITA contributor
Robert Edgren

What's NewTrade Finance Update

What's NewNational Export Initiative (NEI) Update

Ayse's Corner
NAFTA and Beyond

MBITA Contact Info

MBITA / TradePort Events

 


MBITA's UPDATE

Imports create jobs as well as exports, and in this issue we feature a new MBITA member with some unique services for importers and foreign companies. Nationally, we continue to grow our export capabilities as featured in our NEI column, and Ayse's corner revisits NAFTA with some powerful comments and suggestions. And what about the Ukraine Crisis? MBITA contributor and Ukrainian expert, Bob Edgren, has a positive business perspective on the crisis. Enjoy.

Tony Livoti

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Tony Livoti
President.

 

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THE MONTEREY BAY
A Leader in the Blue Economy

MBITA New Member Tim Armstrong

MBITA NEW MEMBER, TIM ARMSTRONG, REACHES OUT TO FOREIGN COMPANIES FOR SALES PRESENCE IN THE U.S. MARKETPLACE

MBITA/TradePort has joined forces with new MBITA member, Tim Armstrong, to provide comprehensive services to foreign companies wishing to establish marketing campaigns and wholesale/distribution channels in the U.S. marketplace These services include a broad outreach program targeted to CEO's, CFO's and upper management decision makers for all industry sectors.

Tim Armstrong offers foreign companies a array of complete and comprehensive sales and marketing solutions in the U.S. marketplace without the costs of in-country offices or personnel. Armstrong's unique programs are designed to support a foreign company's efforts to gain the valuable industry exposure needed to be successful in the U.S. marketplace. As a full-service marketing company Tim Armstrong offers foreign companies the following comprehensive solutions:

  • Conduct one-on-one sales meetings on our clients behalf
  • Perform outbound proactive marketing activities for a specific industry segment
  • Implement a fax, email, and telemarketing campaign within the U.S. marketplace
  • Retain American accounts with 'win/back' programs
  • Provide sales pipeline training and management
  • Conduct competitive analysis through customer surveys providing the foreign client the marketing expertise required for long term and sustainable relationships
  • Other deliverables as agreed

These services compliment MBITA/TradePort's array of global trade promotion services that can be additionally provided to the foreign company in the U.S. Marketplace by providing support and access to qualified members and affiliates that provide logistic support, legal/accounting issues, private sector financing resources and customs clearance and compliance challenges.

Please contact the MBITA office for more information.

Tim Armstrong

Tim Armstrong
Tel. (416) 919-4850
email: timarm1974@gmail.com

 

MBITA Member

  Newport Board Group

MBITA again welcomes Mike Viguerie of the Newport Board Group as a MBITA member and long standing business associate. In case you missed this article below last year Mike's group offers a unique expertise for business growth to companies everywhere and it's worth repeating!!

The 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.

Global economyNewport Board Group's partners have significant experience in over 65 countries across the globe. The company has extensive professional networks in many of these countries.

CEO's of middle market and emerging growth companies face constant pressure to exploit and develop new sources of growth. A growing global economy offers the promise of new customers and increased revenue. In addition to opening new markets, international expansion can also be a way to reduce costs through global sourcing.

A middle market company contemplating international expansion must focus on risks to their business model different from what they experience in the U.S. Newport Board Group's partners have "been there and done that" as hands-on CEO's and senior executives. The firm has developed successful domestic and international strategies for private and public companies around the world. If your company is too big to be small but too small to be big - Newport can help. They will work with you to achieve sustained, profitable growth both in the U.S. and abroad.

Mike Viguerie

Mike Viguerie
Partner
Newport Board Group
Tel. (408) 891-4593
email Mike Viguerie

Web: www.NewportBoardGroup.com

If Russia Was on the Right Side of History It Could Become an Economic Power

Tony LivotiBy MBITA President Tony Livoti

The Ukrainian crisis has affected some American companies with slowdowns, purchase order disruptions and almost a complete stop in general business development since Russia annexed the Crimea. This slowdown has occurred especially in the small and mid-sized enterprise (SME) sectors of both countries.Russia Map
As a visitor on three different occasions to Russia doing volunteer work for the Winrock Foundation to provide marketing training to Russia's budding enterprises from 1999 to 2002, our support in Russia at that time was welcomed with open arms from both the public and private sectors in Moscow and Vladivostok, Russia, and I formed some great friendships with the 'down-to-earth' and very friendly Russian people.

Russia imagesBack then I was very encouraged for the future of both of our countries seeing Russia as a vast resource of talented and educated people in a country with amazing untapped resources that could utilize American technology and business expertise resulting in a 'win-win' for all. Since that time and up to about three months ago there has been slow and steady progress with bilateral trade and investment especially between each country's SME sectors. Organizations like RAPP and others have kept the flame burning for bilateral trade and investment, yet the future I saw ten years ago is still a lofty goal today, even before the crisis.

As I reflect on Russia now under the cloud of the current crisis, it seems that all of the economic development established between Russia and the U.S.A. and Europe in the past 10-15 years is disintegrating before our very eyes, yet, those profitable business channels that have benefited both Russian and American businesspeople in the last fifteen years are the very elements that are challenging any major armed conflict from beginning because of a Russian invasion into the Ukraine or other former Soviet Bloc country. This scenario is another example of the 21st Century solution to war, that is, peaceful prosperity developed between businesses in foreign countries that encourages economic growth in both countries can successfully counter any benefits that may be obtained through armed conflict. Even Vladimir Putin and his Oligarchs are now feeling the 'pinch' and much more to come if they decide to enter Ukraine.

Taking a less altruistic perspective, the old phase, 'where there is Crisis there is Opportunity', surely exists in many facets of industry in the Ukraine as MBITA member and Ukrainian expert, Bob Edgren, wrote in the current issue of MBITA's World Trade Winds ezine entitled 'Opportunities in the Ukraine, Oil and Security'.

In conclusion, I am encouraged that all of the economic development that has occurred between the U.S., Russia, Ukraine and other former Soviet Republics since Perestroika could be the very element that stops armed conflict and the loss of lives in reaction to an expansionist Russia. We need to get back to normal to the benefit of the U.S.A. and the world in general and in particular to the benefit of Russia. If Russia chooses to be on the 'right' side of history she has tremendous potential to become an economic power in the coming years with abounding opportunities for the U.S.A.

Opportunities in Ukraine. Oil and Security.

By MBITA contributor Robert Edgren

Kiev protest Kiev protest
The charming center of Kyiv was a scene of mass protests that soon changed into a war zone.

Trade with Ukraine? Maybe it's time to borrow Rahm Emmanuel's line. "You never want a serious crisis to go to waste. "

There are a dozen of ways the current crisis in the Ukraine could play out. It would take too long for this editor to present his views, which may be meaningless in the end anyway.

For your knowledge, Ukraine's largest exported goods are metal, iron ore and steel. These resources are found in the East, primarily in the Donetsk region. You have probably read about Russia focusing on this region. As I write this, Russians are slipping into this already pro Russia area from across the border to support a Donetsk takeover..

Kyiv Post Front CoverThere is no doubt that a number of Western businesses that established themselves in any part of Ukraine are biting their nails, reviewing their contracts, and living on the edge every hour. Among the biggest we have not heard in the news are. Exxon and Royal Dutch Shell who are about to start a nearly trillion dollar drilling project 50 miles off the Crimea coast.

A well worth article in Oilprice.com provides insight into this matter going from a big hope to a probable major loss for Ukraine.

An interview was conducted by Oilprice.com with Yuri Boyko, the previous Ukraine Prime Minister:

Oilprice.com: The knee-jerk reaction would be that Russian aggression in the Crimea is a red flag for investors; but is it possible that we're looking at a potential new opportunity here instead--perhaps a catalyst for a new era of Ukrainian energy independence?
Offshore oil rigYuri Boyko: Absolutely. What Moscow wants out of all of this is to halt Ukraine's European integration process and to delay its signing of the AA/DCFTA [Deep and Comprehensive Free Trade Agreement]. It would also like more control over key strategic assets, particularly the gas transit system. But Moscow's actions in Crimea after the ouster of Yanukovych in February could very easily spur Ukraine's move towards Europe and away from Russia. Now more than ever, the West—and Ukrainians themselves—see the need for energy independence and the connection this has to the Western world.
Oilprice.com: The shale gas revolution has changed the geopolitical landscape of energy for America—and perhaps for the world. What could this mean for Ukraine, its current crisis and threats emanating from Russia?
Yuri Boyko: I believe that with support from Washington and the European capitals, energy can be an important tool in preserving Ukrainian sovereignty in the face of the recent Russian aggression in Crimea and its threats against Eastern Ukraine.
Ukraine's new government in Kiev needs Washington's support on energy as part of an overall effort that includes sanctions, both in the short- and long-term, in order to change the balance of power in Central Europe. Oilprice.com: Amid these defensive options against Russia, what is a longer-term plan for Ukraine, for Ukrainian energy, and for oil and gas wealth buried in Ukrainian shale?
Yuri Boyko: This is where the new Ukrainian government will play a critical role, providing policy, technical and financial guarantees for American and European companies to develop our substantial natural gas reserves.
Chevron and Shell are currently in the process of exploring the massive shale fields in both the east and west of Ukraine. But Ukraine also needs oil field service providers, technical expertise and education programs to expand our own domestic supply as in the US.
Again, this is where Washington can help, by sending advisors to Kiev, perhaps from DOE [Department of Energy] and FERC [Federal Energy Regulatory Commission].

The country of Ukraine has newly discovered oil and gas areas hignlighted in Orange
Ukraine Oil Areas map
Fifty miles off the Crimean Coast Exxon and Shell were about to spend nearly a trillion dollars in two drilling projects. UACrimea BlueMap Economic zones
Putin discusses energy plans with Exxon's CEO Exxon CEO with Putin

Security Services Needed

Police and security personnel have been strained to the limit, which has opened the door to thievery, kidnapping, burglaries, etc.

One might find the U.S. Ukraine Chamber of Commerce website very helpful. On scheduled forum this month is: "Chamber Roundtable Discussion "From Crisis to Recovery to Growth: The Path to Realizing Ukraine's Economic Potential"

They may be reached through their informative website http://www.chamber.ua/

There is also a very trusted and reliable pro West law firm in Kyiv. Senior partner Sergiy Oberkovych and partner Valentyn Gvozdiy are fluent in English and have established their firm to Western Standards.

Lawyers
Sergiy Oberkovych and Valentyn Gvozdiy at GoLaw.ua
Bob Edgren

Contact:
Bob Edgren
Ukraineconnect
Tel. (831) 402-2111
Email agren7@yahoo.com

What's New Trade Finance

MBITA's finance column features articles from the experts in TRADE FINANCE for exports.

U.S. Exports Support a Record 11.3 Million Jobs in 2013

Washington, D.C. - On February 25 the Department of Commerce announced that U.S. exports supported more than 11.3 million jobs in 2013, up 1.6 million jobs since 2009. In FY 2013, the Export-Import Bank supported an estimated 205,000 jobs.

According to the data in the report, exports now support more jobs than any time in the past 20 years.

"The job counts published today reveal just how important exports are to American jobs," said Export-Import Bank Chairman and President Fred P. Hochberg. "That is why at Ex-Im Bank we continue to stand side-by-side with American exporters and help them fill orders abroad. In FY 2013 alone, our institution supported an estimated $37.4 billion in U.S. export sales and approximately 205,000 American jobs."

In 2013, every $1 billion of U.S. exports supported nearly 5,600 jobs. Goods exports supported 7.1 million jobs in 2013, up 1.1 million positions from 2009. Services exports supported 4.2 million jobs in 2013, which is a record for the noted 20 year period.

This press release was issued on 2/25 by Ex-Im Bank. Press release source article.
Contact Lawton King (202) 565-3200.

What's New

 

National Export
Initiative (NEI) Update

Brazil and the United States to Cooperate on Job Creating Investments

Department of Commerce SelectUSA and Apex-Brasil cement agreement to promote increased investment

Brazil mapBRASILIA, Brazil - Acting Under Secretary of Commerce Ken Hyatt and Brazilian Trade and Investment Promotion Agency (Apex-Brasil) Director of Corporate Management Tatiana Porto today signed an a Memorandum of Intent (MOI) on behalf of SelectUSA, a Presidential initiative housed in the U.S. Department of Commerce, and Apex-Brasil. Under this MOI, SelectUSA and Apex-Brasil intend to work together to encourage investment between the two countries. The more than 76,000 U.S. workers employed by Brazilian companies doing business in the United States underscore the importance of this agreement. The signing took place at the conclusion of the 11th plenary session of the U.S.-Brazil Commercial Dialogue.

SelectUSA is the first U.S. government-wide program to promote and facilitate business investment. Apex-Brasil similiarly works to attract foreign direct investment (FDI).

U.S. Brazil relations"We are excited about this opportunity to work together with Apex-Brasil. Brazilian firms are increasingly making job-creating investments in the United States," said Hyatt. "Foreign direct investment is about mutual success - Brazilian firms that succeed in the world's largest market can create more jobs in both countries. Our team at SelectUSA looks forward to welcoming more Brazilian investors and assisting them as they establish their operations in the United States."

FDI from Brazil into the United States has been growing rapidly. At the end of 2012 - the latest year for which numbers are available - the total stock of Brazilian FDI in the United States stood at $14 billion, nearly 10 percent higher than in 2011. U.S. subsidiaries of Brazilian firms exported $5.7 billion of goods from the United States in 2011.

Brazil - U.S.A."The United States is a priority market for Brazil, not only by its size and global importance - which are indisputable - but also by the historical ties that bind the two nations and their peoples," said Porto. "This Memorandum of Intent between Apex-Brasil and SelectUSA reinforces the bilateral relationship between these two nations and will certainly foster bilateral foreign direct investment."

Many U.S. firms are also succeeding in the Brazilian market. In 2012, the stock of FDI from the United States into Brazil totaled $79 billion.

The U.S.-Brazil Commercial Dialogue was established in 2006 with the goal of fostering improved cooperation between the Department of Commerce and the Brazilian Ministry of Development, Industry, and Foreign Trade, with the mutual goal of increasing bilateral trade and investment. The Dialogue focuses on developing better mutual understanding and developing win-win strategies. Since the previous session in February 2013, officials from the Department of Commerce and the Brazilian Ministry of Development, Industry and Foreign Trade have been working together on a variety of technical issues important to the flow of bilateral trade, including trade statistics, movement of goods and services, capacity building for trademark processing, a wide range of standards issues, and FDI.

MOIThe MOI fulfills a key commitment of the U.S.-Brazil Commercial Dialogue and reinforces the strong commercial relationship between the two countries. Under the terms of the MOI, both parties will seek to act as central points of contact for existing and potential foreign investors who seek investment opportunities and information on bilateral investment flows. The parties will seek to provide assistance to investors in contacting appropriate investment and industry experts in the United States and Brazil.

This press release was issued on February 7th by the International Trade Administration. Press release source article.
Contact Tim Truman (202) 482-3809.

##########
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
##########

Ayse's Corner
NAFTA and Beyond

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

NAFTA Since its approval in 1994, NAFTA (The North American Free Trade Agreement) has greatly deepened trade relations by eliminating tariffs and other trade barriers among the United States, Canada and Mexico.

The U.S. trade between Mexico and Canada has reached a trillion dollars per year, and today, Canada is U.S.'s number one trading partner and Mexico is the third. The U.S. exported more goods to Mexico in 2013 than to Brazil, Russia, India and China combined.

U.S. trade with Mexico and CanadaAccording to Duncan Wood, Director of the Mexico Institute at the Woodrow Wilson International Center for Scholars, the economic integration between NAFTA partners resulted in this interconnected supply chain and has helped U.S. manufacturers "maintain competitiveness by importing parts and components" from low-cost Mexico while keeping high-value activities in the U.S. The supply chain of large production facilities serves customers in three countries with a combined population of 470 million. As a result, the average U.S. import from Mexico contains 40% U.S. content, compared with only 4% U.S. content in imports from China, and 25% from Canada.

U.S. merchandise trade 2012

However, despite the sizable growth rate of intra-continental trade, North America's share of world exports has declined from 19% to 13% since NAFTA was enacted. Since two-fifths of Mexicans are under the age of 20, the Boston Consulting Group expects Mexico's labor force to grow by 58% between 2000 and 2030, while they estimate the U.S.'s labor force to grow 18%. Also, the development of Canada's oil sands and the recent constitutional change that allows private firms to invest in Mexican energy could unleash an array of investments that would lower energy costs for manufacturers across the region.

BombardierTo strengthen North America's momentum in world export markets, grow the number of jobs, and spread their supply chains, the government needs to intensify its efforts in co-producing products and services in advanced manufacturing industries, including aerospace, computers and pharmaceuticals.

Learjet 85 is a prime example of a North American success story. Bombardier, a Canadian firm based in Montreal, took over Learjet, an American firm, in 1990. The engine of the plane was designed by Americans Pratt & Whitney, built in Canada, and manufactured in a Mexican factory. Without NAFTA, a tri-national product like the new Learjet would never have been possible.

Now that we're looking to the future, the highest priorities that need to be addressed include:

  • Streamlined pre-clearance systems need to be put into place to avoid congestion at the borders.
  • Trade negotiations such as the Trans-Pacific Partnership (TPP) must be finalized in order to open more markets for North American goods and services.
  • NAFTA members should undertake further initiatives in trade, innovation and education to create a hub of entrepreneurship and cooperation.

A serious commitment is needed on the part of North American leaders in taking NAFTA to the next level to ensure a win-win proposition for all parties involved to grow and compete in this global economy.

Obama, Harper, Pena Nieto
L-R: U.S. President Barack Obama, Mexican President Enrique Pena Nieto and Canadian Prime Minister Stephen Harper.

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

Contact
Ayse Oge, President
Ultimate Trade LLC
Tel. 818-708-9571
Email Ayse Oge
Web: www.goglobaltowin.com

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