Looking back, my interest in international trade began when I first crossed the U.S./Canada border as a six year old in the back seat of our bright red Chevy.

Our family was moving from Chicago to Montreal because my dad had taken a job there.

When I was growing up in Montreal in the 1960s and 1970s, my father traveled extensively for business, selling industrial valves. His foreign business associates visited our home frequently.

A childhood exposed to international travel and culture

My mom was, and still is, a fabulous cook, and the businessmen also wanted to learn English by spending time with our family.

Can you imagine watching “Hogan’s Heroes” with German men who had been conscripted into the Hitler Youth?

In the meantime, my maternal grandparents took a months-long voyage from Chicago, through the Great Lakes and the St. Lawrence Seaway to the North Atlantic and then proceeded to sail all around South America.

Upon their return, they brought me porcelain dolls dressed in their folk costumes from the various countries – for example, an Argentine gaucho and his wife. When my dad traveled, he would bring back foreign dolls too.

I amassed a beautiful collection to go along with my hockey gear – since I was obsessed with hockey at a time when I was the first and only girl playing on a boys’ team at the local rink.

In addition to the dolls and hockey sticks, my parents purchased the entire set of World Book encyclopedias and a globe for me. I became fascinated with maps and would gently place my tracing paper on top of the maps of countries and trace their rivers and boundaries for hours on end.

Early influences set me on the path to global trade

In fact, I won the prize for the highest marks in geography in the Quebec provincial exam the year I graduated from high school.

I am not saying this to brag – it is just that early influences for children can be so important.

I was fortunate to have many positive ones – such as traveling with my dad to Italy and Germany, and being allowed to drink a stein of beer in Hamburg as a 15 year old.

In college, my favorite professor was an international lawyer who was a leader in the creation of the UN’s Law of the Sea Treaty. He encouraged me to go to law school.

The plan was that I would then do legal work for my dad’s company in Montreal. That plan was never hatched. Our family left Montreal as part of the “Anglophone Exodus” of the late 1970s, after Bill 101 established French as the province’s official language, and the language of business, education and commerce.

Instead of Montreal, I pursued my legal career in the United States, but have always kept my connections with Canada.

As a new lawyer, I worked in international banking in Chicago. I was married there, but soon my husband’s business took us to Dallas in the early 1980s. This was an exciting time, as Dallas was fast emerging as a global city.

Gaining experience and overcoming gender bias overseas

I spent ten years working as an in-house lawyer for Texas Instruments (TI) in Dallas. I traveled to Canada, the UK, Europe, Asia and the Caribbean. My work involved negotiating international purchase and sale agreements, technology licensing agreements and working on issues involving foreign governments.

On a couple of occasions, I had to leave for an international flight immediately and did not have much time to pack.

In some male-dominated countries, it was especially challenging to project authority as a female lawyer, so I had to invest in what were then known as ‘power suits.’

After TI, I worked with two large law firms in Dallas, mostly representing technology companies.

I was still traveling frequently, and especially enjoyed a week I spent working in Taiwan, a country of very friendly and gracious people. Although, I was a bit disoriented by all the signs everywhere – none of which I could read!

Eventually, I switched gears from a two-decade-long technology practice to work for Walmart in Arkansas.

I was asked to provide legal support for the company’s global procurement operations, and then moved over to a food merchandising, food and product safety and private label development legal counseling role.

Both of these positions involved many global legal issues.

Becoming a business leader and entrepreneur

In 2008, I opened my own law firm and became an advisor to New Zealand Trade and Enterprise America’s Beachheads program. I also joined the Arkansas World Trade Center.

This is where I first met Leroy Lowe, who flew down from Nova Scotia to introduce the FITTskills curriculum.

Seeing how comprehensive and pragmatic the FITTskills courses are, I immediately jumped into completing all the courses and exams for my FITT diploma, and applied for my elite CITP®|FIBP® designation. I was elected to the FITT Board, and taught FITTskills courses in Arkansas.

One cannot be an effective business lawyer without understanding how the clients’ businesses operate. This is why the FITTskills curriculum is so unique and valuable.

It gives you a 360 degree view of international trade, not a narrow, specialist-only perspective.

Through my involvement with FITT, I met leaders of the Ottawa chapter of Organization of Women in International Trade. This led me to become a co-founder of the Arkansas chapter.

I now serve as a director of the Tampa Bay chapter. There is no question that FITT has helped me to expand my network of valuable business colleagues and connections.

Giving back to international communities

I also have a passion for helping those in need. In addition to my legal work for businesses, I have spent many years assisting refugees and helping children injured in war zones receive U.S. medical treatment. I worked with many Bosnian refugees in the aftermath of the civil wars which destroyed Yugoslavia.

I was in Sarajevo after the Dayton Peace Accords were signed and the city was still devastated and on edge. There, I ran into some brave Canadian peacekeepers and was photographed standing with them.

My career has been successful, with some failures and setbacks along the way, of course.

But through it all – the keys to my success have been the people who helped me before the term mentor came into vogue, as well as perseverance, curiosity and lifelong learning.

I think it’s important to give back, and I try to help students by hiring them for summer legal jobs, volunteering at local schools, speaking at colleges about careers in international business and sponsoring robotics and Model UN teams.

One of the advantages of growing up in Canada as an American is that I love both countries equally. Whenever the two countries play against each other in international hockey tournaments, I am always happy no matter which team wins.

For those in international trade, I highly recommend engaging with FITT – no matter what your profession, industry sector or stage of your career. You’ll broaden your knowledge and you’ll meet great people.

Go for it!

The post How following my childhood passion led to a thriving career in international law appeared first on Trade Ready.

Throughout his two terms, President Obama and the Republicans in Congress have not been able to work together.

A rare exception is their current alliance to secure Congressional passage of what is known as “fast track authority” for the President to create, with eleven other countries including Canada, the Trans-Pacific Partnership (“TPP”).

This week the Senate joined the House of Representatives in voting for this fast track authority giving the Obama Administration the ability to move forward and conclude the negotiations. The support came mostly from Republicans but with some defectors on both sides of the aisle.

The other countries involved in the TPP are: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Look who is missing from the group – China!

The Office of the U.S. Trade Representative claims that the TPP will support American exporters, including small businesses, and enforce labor rights and environmental protections.

The Obama Administration and Congressional Republicans also view the TPP as a way to counter the expanding economic and military influence of China in the Pacific region.

Can you hear the “giant sucking sound”?

Despite their loss in Congress this week, the vigorous opposition to TPP will continue when the actual treaty is finalized and presented to Congress for ratification. The opposition is led mostly by Democrats and union members, but it includes citizens of all political leanings.

In 1992, presidential candidate Ross Perot predicted that the NAFTA agreement would lead to the loss of millions of American manufacturing jobs.

He called it the “Giant Sucking Sound” – one of the most famous lines in American political history.

In my view, no one can credibly argue that NAFTA and the following trade deals with China and other countries did not lead to the loss of America’s manufacturing base and millions of blue collar factory jobs.

The evidence is there for all to see – shuttered factories in big cities and small towns all over America, persistent wage stagnation and high unemployment for workers without college or specialized vocational skills. Big box stores sell consumer goods mostly imported from China.

You don’t have to be a trained economist to see the downside of the free trade deals signed since NAFTA.

The unseen benefits of free trade agreements

Unfortunately, the upsides of free trade are not always fully recognized. Freer trade has provided American consumers with year round fruits and vegetables imported from the Southern Hemisphere.

Cheaper imported consumer goods have increased our purchasing power even as real wages for millions in the U.S. have stagnated since the 1970s.

What many people don’t see is the biggest upside of free trade – increased exports of foodstuffs, airplanes, defense articles, construction equipment and vehicles, high technology products and many services.

Unless Americans work for companies like Apple, Caterpillar, Boeing or Tyson Foods, they are not seeing all the products which leave our shores every day – only the products that come in.

International trade was much easier for all Americans to support when it only involved things like importing coffee and bananas – foodstuffs that we cannot grow here.

Would public opinion really be aroused to a fever pitch over imports of French perfume, English bone china or Canadian hydro-electric power? Of course not.

Are trade deals the real culprits for American job losses?

Protectionism and support for trade barriers arise when global corporations send manufacturing and service jobs to cheap labor countries and equivalent “good jobs” are not created to replace them.

The blue collar factory worker is left floundering when his job is sent to China and his only options are lower wage retail or attending community college to be “re-trained” for jobs that may not exist or he cannot fill.

When it was only factory workers who were displaced by free trade, service workers and other professionals were not really concerned – especially when they could buy less expensive imported goods like flat screen TVs.

But when corporate America started outsourcing programmers, radiologists, call center operators, lawyers and others, a much larger anti-free trade bloc has emerged.

Some opponents of free trade are encouraging class warfare with their rhetoric about inequality, while they fail to note that it is not only trade deals, but also advances in technology thathave displaced so many workers – like secretaries and low skilled factory workers.

The irony is that while millions of Americans are unemployed or underemployed, companies which want to manufacture high value products in the U.S. have a hard time finding workers with the math and computer skills needed to operate factory equipment.

I am fortunate to currently live in Pasco County, Florida which, as a leading participant in the Tampa Bay Advanced Manufacturing Skills Initiative, has recently established a world class, internationally recognized German/European apprenticeship program in cooperation with local companies and educational institutions.

This program will help existing manufacturers grow and will attract other companies to relocate here, especially exporters.

Don’t shut it down – lead it forward

The opponents of TPP are taking the short view. In some ways, they resemble the 19th century Luddites – the English textile workers who destroyed labor saving machinery in textile mills.

Technological progress has always displaced workers – the famous example of the automobile displacing horse drawn wagons and buggies.

Clearly, earlier trade agreements did not do enough to protect American workers from sudden dislocations and, especially when it comes to China, the agreements did not protect the environment.

The TPP promises to address these types of problems. Of course, many opponents distrust this will happen.

The way I see it – we can either have the twelve countries in the TPP, including the U.S. and Canada, lead the way in the Pacific region, or we can withdraw and let China dominate the region.

Wouldn’t the U.S.- and Canadian style’ worker protections and environmental standards and those of Australia and New Zealand be a better model than what we have seen from China to date?

Properly managed trade agreements like TPP will advance shared prosperity.

The “giant sucking sound” has already occurred, not so much from NAFTA but from our existing trade imbalance with China.

Advances in computing, communications and aviation have shrunk the globe. There is no going back. The way forward is to increase the volume and quality of our exports and increase the skills and work ethic of our citizens – not to close ourselves off from a leadership role in global trade.

Do you oppose or support the TPP deal? Do you think Canada and the U.S. can lead the way in the Pacific with worker protections and environmental standards?

The post Is the TPP deal another “Giant Sucking Sound” or a path to 21st century shared prosperity? appeared first on Trade Ready.

When we think of international trade, we tend to think of massive container ships moving goods across oceans. But what about the international trade in energy, specifically oil and gas?

At the end of World War II, the U.S. produced all the energy it needed domestically, and Canada imported most of its oil from the U.S. How things have changed since then.

Both countries remain top oil and gas producers, but Canada has become a large oil exporter to the U.S., even though Canada’s eastern provinces depend mostly on imported oil.

There is no doubt that the need for oil and gas has had an outsized influence in global geo-politics.

Would the United States have become so entangled in wars in the Middle East since the 1970s if not for oil?

Would Vladimir Putin have so much sway over the Europeans if not for his ability to cut off their natural gas supply at any time?

Would China have just completed a 771 kilometer pipeline through rugged jungle terrain in Myanmar (Burma) if it was not worried about assuring continued access for its oil imports?

The fracture factor

A recent development, which has radically changed the world energy scene, is the emergence of new technology which can extract natural gas and oil from massive shale formations in the U.S., the UK and Canada.

This technology, known as hydraulic fracturing or more commonly as “fracking,” has enabled the U.S. to increase its energy production dramatically and lower energy costs.

Fracking involves drilling and injecting fluid into the ground at high pressure to fracture the shale rock in order to release natural gas and oil inside. It is hugely controversial.

Proponents of fracking claim that fracking is an “economic and energy solution” and that it is “safely taking place in America.”

Opponents of fracking claim that: “Fracking for oil and natural gas is too dangerous: it threatens the water we drink, the air we breathe, and our health. It also accelerates climate change. That’s why we need to ban fracking now.

Currently, some states such as Vermont and New York have banned fracking within their borders, while traditional energy producing states like Pennsylvania, Texas and Oklahoma have embraced it. In Canada, Quebec has placed a moratorium on it.

On March 20, 2015, the Obama Administration issued the very first environmental regulations on fracking. Immediately, oil and gas interests went to court to stop their implementation, arguing that the regulations are both costly and unnecessary.

Fracking’s effect on trade

Readers may wonder what the debate over fracking has to do with international trade. The answer is that the emergence of new technologies like fracking, whether it continues to rapidly expand or is ultimately restricted, can be highly disruptive to existing international trade flows.

The fact that the U.S. is becoming energy independent is already having a huge impact on Middle East oil producers like Saudi Arabia, who worry about what will become of their largest market. If American petrodollars stop rolling in, will even more political instability in the region follow?

Meanwhile, the huge oil and gas reserves opened by fracking and the resulting price drops means far less emphasis will be placed by most consumers on energy conservation.

When energy is cheap, American and Canadian consumers simply use more of it. Will this increased use of fossil fuels mean less investment in renewable sources like wind, and solar and more negative impact on our climate?

Few international traders, outside of the most sophisticated energy company geologists and technologists, would have predicted the fracking revolution and how it is changing the “balance of power” in the world.

It is no coincidence that last fall Texas Governor Rick Perry made a trip to Poland, hoping to expand the export of liquefied natural gas from Texas to Eastern Europe.

In the meantime, as the U.S. has become more energy independent, Canadian producers have been looking for new markets for their LNG exports.

With international trade, nothing stays the same. This is what makes it so interesting and challenging to engage in. To be successful international traders, we have to be well informed “futurists” who can stay abreast of current global trends in business sectors generally, not just our own.

What is your opinion on the future of fracking and its influence on the global energy market?

Do you think the benefits outweigh the risks?

The post Like it or not, fracking is disrupting international trade flows appeared first on Trade Ready.

But ask yourself as a business person—have you ever heard a lawyer talk about the adventure and joy of engaging in international business?

If not, here is your first time!

How this lawyer came to love global trade

I started working in international trade during my summers in high school and college. I was fortunate that my dad owned an international valve company based in Montreal.

Back in the days of telexes instead of email or text messages, I used to deal with international customers while working as a clerk in the accounts payable department.

I travelled to several countries with my dad on business and was able to meet foreign businessmen who came to our home for dinner. In those days, all the business people were men. I sure am glad that has changed!

That early experience whetted my appetite for a career in international business.

I studied international relations and European, Russian, Asian and North American history in college.

I went on to law school and took all the international law courses available at the time. Why?

The answer is that as a teenager, it was an adventure to travel on Air Canada, BOAC or Lufthansa to Europe and have your passport full of stamps from different countries.

It was fun to be an underage minor as far as Canadian law was concerned and still be able to legally drink beer in Hamburg, Germany. Did you know that some Caribbean Islands are not just great beach destinations but centers of energy development and international banking?

The mental and physical benefits of doing business abroad

[Tweet “Doing business with people from other countries is intellectually stimulating.”]

It is a lifelong learning process. You never get bored when you struggle to understand a different language or accent or when you learn how to drive on the left hand side of the road.

Your entire brain is engaged along with your hearing and your motor skills.

Foreign travel for international business also stimulates your digestive track for good and for ill, depending on your destination. Even if you have to constantly pop Tums or make some unscheduled trips to the bathroom; it is usually enjoyable to navigate foreign menus and try different cuisine.

However, I always travel with a jar of peanut butter and a package of crackers to tide me over if the local dishes are unpalatable.

Some people are more comfortable living in the same place their entire life and not moving around their own country or the globe. That’s perfectly fine—there is nothing wrong with putting down deep roots.

Taking on the challenge of foreign trade and reaping the rewards

On the other hand, some people like the challenge of operating in different cultures and places, outside of one’s comfort zone. If you are one of these people, then go for it—develop your professional skill-set and dive into international trade! You will never regret it.

Yes, being an international business person entails more risks than dealing domestically.

There are currency fluctuation risks, logistical risks, delays in getting paid sometimes, and even personal risks if the country you are traveling in has civil unrest, dirty water or diseases that Canadians and Americans don’t have to contend with because of our climate and public health advances.

Economists and stock market traders know that risk and reward are inter-related. The greater the risk, the greater the potential reward!

Does this line of thinking suit you too? What has made your international business experiences well worth the risks?

The post A lawyer’s perspective on why the risks are worth the rewards of doing international business appeared first on Trade Ready.

International trade is a risk/reward business. There can be greater payment, logistical, regulatory and political risks when dealing with overseas suppliers and customers. Nevertheless, your business will reap rewards if you can develop a competitive global supply chain, penetrate profitable export markets with quality products and services, while successfully managing the increased risks.

Payment risks caused by defaulting customers can be minimized with letters of credit and other financial instruments. Logistical risks can be managed by selecting experienced shipping companies and engaging with skilled logistics professionals. Regulatory risks can be identified if you hire qualified legal counsel upfront and not wait until a violation has occurred.

Political risks are harder to deal with. Contrary to conventional wisdom, political risks are not just a “Third World” problem. You can face unexpected political risks even when dealing with advanced economies. Managing these risks can be tricky. You have to act like a chess player or hockey goalie and anticipate where the next move or shot will be coming from.

There are many types of political risks. Most of them are covered by the political risk insurance policies offered by Export Development Canada (EDC) to Canadian exporters. American exporters can obtain similar policies from the Overseas Private Investment Corporation (OPIC).

1)    War and civil unrest

The most obvious political risks are wars, sustained civil unrest and major acts of terrorism which destroy or severely hamper the ability to conduct commerce in the foreign country.

2)   Expropriation without just compensation

Expropriation is another form of political risk. It occurs when the foreign country arbitrarily confiscates or “nationalizes” assets, often without due process of law and without paying just compensation to the business owners. Prominent examples from the 1960s and 1970s include Fidel Castro’s seizure of U.S. companies’ sugar plantations in Cuba, and Salvador Allende’s seizure of U.S.-owned copper mines in Chile.

3)    Trade losses due to embargoes

The imposition of an embargo against a foreign country can bring your company’s imports or exports to a screeching halt. The most long standing example is the United States’ embargo against Cuba, which was imposed in 1962 and continues today with limited exemptions. When I was practicing law in Chicago, the U.S. imposed an embargo against Iran when Iranians took American embassy personnel hostage in Teheran. One of our clients suffered significant losses when its perishable goods in ocean transit could not enter Iran.

4)    Environmentally influenced political risks

In the past, weather, pollution and over-fishing were not commonly viewed as political risks. However, seas are rising, storms are increasing in their intensity, industrial pollution crosses international borders, and ocean fisheries are in steep declines due to the actions of particular countries. The political risk category may be broadened to encompass these emerging environmental issues.

5)    Trade disrupting sanctions

Today, the most common political risk disrupting international trade flows is the imposition of sanctions against one country by another country. Sanctions have become an increasingly favored political tool to punish other governments which violate international law, abuse human rights and/or otherwise engage in behavior harmful to the country imposing the sanctions. Sanctions are a form of economic warfare which hurt the innocent civilians in a country much more than the leaders of the country, as was the case with the long standing sanctions against Iraqi dictator Saddam Hussein – however, the ethical aspects of sanctions are beyond the scope of this article.

Sanctions are typically more limited or targeted than a full embargo. They may include visa bans for individuals, freezing of the assets of individuals, companies and the foreign government, prohibitions on commercial dealings and trade in specific commodities, cessation of arms sales, cancellation of international cooperation meetings and joint military exercises, and restricting the sanctioned government’s access to financing and debt relief. In severe cases, sanctions morph into complete embargoes and even naval blockades and no-fly zones, inching closer to military conflict.

Clearly, sanctions are authorized under international laws and the laws of the countries involved. For example, both Canada and the United States have domestic legislation setting forth the criteria for and the mechanics of sanctioning another country either unilaterally or in concert with the United Nations, other countries or the much spoken of but always illusive ‘international community’.

Sanctions can be devastating for commercial businesses because they are often imposed in an unpredictable manner and sometimes with lightning speed by politicians anxious to appear forceful on the world stage but perhaps unconcerned about the impact on particular businesses selling commercial goods that are totally unrelated to the political crisis. An example involves the current situation in Ukraine where Canada, the U.S. and the EU have issued sanctions on numerous persons as a result of the corruption of the former Ukrainian government and Russia’s military incursion into Crimea. For example, it is possible that companies based in the West which were legally selling commercial goods to one or more of the now sanctioned persons in Ukraine could suffer severe financial losses through no fault of their own.

It is my understanding that the political risk insurance offered to Canadian exporters by the EDC and to American exporters by OPIC does not cover losses incurred because of the imposition of sanctions by the Canadian or U.S. governments respectively. It only covers losses caused directly by the actions of a foreign government. There may be some private insurers covering this sanctions risk but these two government agencies do not.

Insure your trade interests

The cautionary advice is to obtain political risk insurance to protect your exports where available and affordable. Like all types of insurance, there are exclusions from coverage. You should be very familiar with the policy coverage and exclusions. You also need to keep a close watch on the political and economic developments in the countries you are exporting to. You have to be your own “futurist” and predict when your exports may be disrupted by political risk, especially the increased use of sanctions by your own government.

In a globalized economy, it is unlikely that sanctions will not cause some “blowback” on the sanctioning country’s exporters. This is something that politicians need to pay attention to and avoid taking precipitous or ill-considered actions which damage their own country’s businesses. I am not suggesting that governments in Canada or the U.S. ignore violations of international law and human rights by other countries. I am only suggesting that overly broad sanctions may not be the wisest foreign policy tool because of the negative impact on the sanctioning country’s international trading companies’ legitimate business.

The post Don’t let these 5 political risks sink your exports appeared first on Trade Ready.

Speaking from three decades of experience as a business professional, I believe that the most important requisites for success in a career in any field are personal characteristics and values. Education, training and on the job experience are necessary of course.

However, the news media is full of stories about highly educated, trained and experienced business people who spectacularly fail because of negative personal characteristics, including the lack of values. 

1) A top personal characteristic and requisite is curiosity.

You have to be a curious person to be attracted to the field of international trade and then to persevere and succeed in the field.

Curious means eager to know and eager to learn.  Another similar characteristic is inquisitiveness. Successful international traders are curious and inquisitive about other countries and their histories, geographies, cultures, religions, foods, sports and ways of living and doing business.

Conducting international business is not just about the exchange of goods, services or currencies across international borders. It is about developing and sustaining personal relationships. People appreciate it so much when we make an effort to learn about their country and way of life. I remember when I was practicing law in Dallas, Texas how many clients based overseas told me they had never met an American lawyer who knew so much about their country or who could greet them in their language.

I am not saying this to brag. I am passing it along as career advice. Don’t just wear your lawyer, logistician, sales person or accountant “hat” when dealing with international clients, customers and suppliers. All your competitors can do that.

 What will set you apart is when you can converse with other people about their country in an informed manner and show sincere interest in learning more about their culture.

If you want to build your career in international trade, don’t be a narrowly focused “technocrat” in your profession. Learn about life in other countries through reading, watching documentaries, studying maps, following international news and travelling.

You don’t have to become fluent in multiple languages, but learning a few phrases in the language of the people with which you are doing business is incredibly important to build trust. They are not going to make fun of you if you speak with an accent or mispronounce a few words—they will applaud your effort.

2) The second and equally important requisite is your values.

To be successful, you have to be a person of integrity. What does this mean? It means always telling the truth, being dependable and never doing the wrong thing for a boss or a paycheck. There is always another boss and another paycheck.

Better still, you can always start your own international business and be your own boss once you have a reasonable level of education, training and experience behind you.

 No matter where you are in your international trade career—at the beginning, in the middle or nearing the end—curiosity and integrity are the top requisites you will need to be successful and happy in your work. 

Do you already possess these traits?  Let me know how these traits have helped you in your own international trade career.

The post Two qualities that you absolutely need for an international trade career appeared first on Trade Ready.