Meetali’s career in international trade began in 2015 when she transitioned from a global consulting firm in the private sector to the UK’s Department for Business and Trade in the public sector. In this role, she assisted British companies to enter and expand their operations in India, focusing on sectors like Financial Services and Energy.

“It was a complete shift from the private sector to an exciting world of international trade, export promotion, and market development where I generated businesses opportunities for British companies. I provided strategic advice and executed sector-specific trade promotion initiatives to help clients access opportunities, establish strategic alliances in the market, and grow their business in India.”

Meetali shares an example of her success: she helped a single-brand retailer get their FDI application approved to enter the Indian market, set up their brick-and-mortar stores, and sell their products. Over the next few years, the company invested more capital, generated strong sales revenue, created jobs, and went on to become a popular brand.

“I reflect on the role I played when I see their popularity in India. Over time, they established themselves as leaders in their product segment.”

“One of my proudest professional accomplishments was to contribute to this business’ journey in the initial phase and witness their growth trajectory.”

Contributing to UK-India trade relations post-Brexit

The 2016 Brexit marked a significant turning point for the UK and its trading partners. This transition necessitated a fresh approach to trade policies and agreements with countries like India. Meetali found new opportunities to leverage her expertise in the evolving landscape and progressed in her role, moving into market access and trade policy and working on government-to-government dialogues to champion equitable conditions for British businesses in India.

“I undertook policy advocacy work, engaged closely with the Government of India on behalf of the British government to advance the market access agenda for British companies. I worked as a core member of the policy team to create a level playing field for British businesses operating in the Indian market and resolved specific barriers related to ‘ease of doing business’ during my tenure.”

During that period, the UK began developing its independent trade policy with various countries, including India, which required extensive groundwork. This helped Meetali gain valuable experience and a deep understanding of the markets and governmental functions in both India and the UK.

Eager to expand her knowledge, Meetali chose to continue her work with other foreign governments, bringing her unique perspective to new challenges and building a career in the international trade arena. 

Helping Canadian businesses expand in global markets

In 2022, she joined the Trade Commissioner Service with Global Affairs Canada, leading the infrastructure sector. In this role, she helped Canadian companies do business in India and was one of the youngest trade commissioners in Global Affairs Canada’s overseas network.

“I helped clients prepare for the overseas market. Factors such as competitor intelligence, regulatory compliance, market knowledge, and understanding customer preferences were crucial. In certain sectors, the sales cycle can be long and requires commitment and perseverance from business owners.”

“Clients should be prepared to invest time in understanding the opportunity landscape, establishing strong partnerships, and building a strong network. Success does not come overnight.”

Shifting markets, same client focus

While working with the Canadian Trade Commissioner Service from the New Delhi office, Meetali was inspired to make her biggest move yet and immigrate to Canada.

In 2023, Meetali settled in Toronto, Canada, where she found an excellent opportunity to tap into her skills as Market Advisor – Digital Tech for Enterprise Ireland, the Irish Government agency responsible for supporting Irish businesses in global markets. In this role, she leads the digital technologies portfolio of clients in the cyber security and digital entertainment sectors in Canada, helping Irish innovators find meaningful partnerships with Canadian organizations.

Recently, Meetali attended the Toronto International Film Festival (TIFF) to support an Irish client company in her portfolio. Later this month she will lead a delegation of Irish animation companies for a market study visit to Canada promoting co-production opportunities between Canadian and Irish studios developing their own IP.

Throughout her career, Meetali has found that keeping client interests as the primary focus is crucial in international trade. This might seem like straightforward good business sense, but it can be more challenging than it appears. Meetali explains how she applies this philosophy in her current role with Enterprise Ireland.

“I believe the essence of an international trade advisor’s role is to provide bespoke advice to clients keeping their best interest and potential success in mind.”

“For instance, Canada often serves as a cost-effective gateway into the North American market, offering ample opportunities to introduce new innovations. This environment helps companies gain a technical edge in a rapidly evolving world.”

Professional development and well-earned validation of expertise

Meetali’s keen interest in market entry strategy and the various options available to companies looking at international expansion is evident in her career. As she progressed through the six courses in the FITTskills program, she particularly enjoyed the International Market Entry Strategies course.

“My favourite course was International Market Entry Strategies. It was designed in a way that was very engaging. The structure of the course modules and sub-topics was quite interesting. Discussing different routes to market, types of investments, or options like greenfield or brownfield, direct or indirect channels, joint ventures, mergers, or acquisitions, has enhanced my ability to provide strategic advice to our Irish companies weighing their options in market entry.”

“I have applied the concepts I learned [in the International Market Entry Strategies course] in my practical day-to-day job, which is why I find them so relevant and interesting.”

Upon successfully completing the FITTskills program and earning her FITT Diploma in International Trade, Meetali was encouraged to validate her professional development by applying for the Certified International Trade Professional (CITP) designation.

Looking forward, Meetali wants to continue to grow her knowledge of the Canadian market and help her international clients find success there through her guidance and strategic advice on the opportunities available in that market.

From the very start, Meetali Kashyap has brought her intelligence and capacity to learn and grow in new markets into her work. In this she has met with resounding success, both in her personal professional advancement and for her clients and their businesses. We are proud to welcome her to the CITP community.

“I value the industry-wide recognition the designation offers, which will enhance my career progression opportunities. Earning the CITP has established that I am an experienced international trade professional.”

The post CITP Spotlight: Meetali Kashyap – Market Advisor, Enterprise Ireland appeared first on Trade Ready.

It’s that time again where we like to look ahead at the incoming year and pinpoint the biggest trends to keep an eye on in the global trade environment. 2019 was another year full of challenges, surprises, and continued volatility. This year looks to be less explosive, with fewer conflicts but a general slowdown in trade growth. However, more small businesses are jumping into international markets than ever before, and new trade deals and tech continue to bring ample opportunities for those willing to make the leap.

Here’s what we’ll be watching in 2020.

1. Slowing economic growth

After a difficult 2019, most global outlooks were projecting subdued 2020 global trade growth late this year. This was largely due to a sharp downturn in manufacturing activity and global trade volatility with Brexit and China-US relations.

“The weakness in growth is driven by … higher tariffs and prolonged trade policy uncertainty damaging investment and demand for capital goods,” stated the IMF blog.

In Canada, specifically, global growth forecasts were downshifted in EDC’s fall update to the 2020 outlook.

“With the slowing global economy and lingering trade tensions weighing more heavily on Canada’s exports than previously expected. EDC now forecasts export growth to moderate further to 2.6% in 2020, revised down from the 3.4% growth forecast in spring 2019.” – EDC Global Export Forecast 2019

However, with the very recent and significant progress made on the Canada-US-Mexico Trade Agreement and the “phase one” US-China trade deal, growth forecasts into 2020 may soon be revised again, to the positive this time.

2. Service export opportunities growing in new regions

Canadian trade in services continued to grow for the 9^th year in a row, with industries such as travel, finance, resource development, technology, transportation, and agriculture presenting the best opportunities. While the U.S. is still the biggest importer of Canadian services, the fastest growing relationship in commercial service exports was with African nations (13%).

In the U.S. service exports are increasing as well, reaching $71.1 billion for the year as of October.

Service exports also seem to have been immune to the downturn weakening goods exports.

“Goods exports have been more negatively impacted by softening global conditions and are expected to grow at a modest 3.3% in 2019, slowing further to 2.3% in 2020. ”

“Alternatively, services – exports have been resilient, and continue to be steady with forecasted growth of 5.1% this year and 3.9% next year.” –EDC Global Export Forecast 2019

3. China – “Decoupling,” or in “phase one” of renewing trade relations?

After almost three years of escalating tensions and retaliatory tariffs between the US-China and Canada-China, talk began to emerge of a “decoupling” strategy. This would see China drastically reduce trade with North America, replacing it with domestic inter-regional trade.

Already, China’s foreign direct investments in the U.S. dropped 88% from 2016-2018. The potential for a drastic drop in China-U.S. trade is raising alarms about possible tech wars, and remapping supply chains to leave out the west all together.

However, this fall saw the U.S. and China put much of the contention behind them and most recently, sign off on “phase one” of a China-U.S. trade deal. Details have yet to be released, but during a press conference it was announced that,

“Trump agreed to scale back some tariffs (which was China’s top demand and was cheered on Wall Street). In exchange, China said it will buy more U.S. farm products (which Beijing had wanted to do anyway), enhance its intellectual property protections and allow U.S. banks and credit card companies full access to China.” – according to the Washington Post

Canada is watching the developments between China and the U.S. closely, as increased trade between the two nations could have either a positive or negative effect on Canada’s energy and agricultural exports.

The shifting dynamics between China and North America will send shockwaves through the global market so we will certainly be watching for any developments.

4. Tariff workarounds

Because of the continued uncertainty between China – North America trade, companies have started looking for workarounds to avoid getting caught by tariffs. Other nearby regions, such as Vietnam, South Korea and Taiwan, as well as Mexico have been seeing increased imports as North American companies have tweaked their supply chains to reroute around China.

A little less on the up-and-up, some North American-based companies have been exploiting loopholes in trade policy to circumvent paying increased tariffs on Chinese-manufactured goods. Specifically, section 321 of the Tariff Act of 1920’s de minimis rule. Some are stretching the legitimate rules, which U.S. Customs is aware of and claims to be cracking down on. Others are using the rule to apply correctly to their goods.

Either way, some of those that can’t avoid China-North American trade uncertainty are finding ways around paying the tariffs, for now. We’re keeping an eye on new manufacturing hot spots as they pop up and trade policy continues to shift. It’s a good time to be a trade lawyer.

5. More new supply chain tech

The adoption of buzzworthy technology, such as artificial intelligence, blockchain, drones and robotics have been revolutionizing supply chains for the past few years. This is reaching a new level of maturity as companies big and small take agility and automation to the next level into 2020.

Some predictions we’re seeing illustrate the level of adoption of this technology,

“By the end of 2021, half of all manufacturing supply chains will have invested in supply chain resiliency and artificial intelligence (AI), resulting in productivity improvements of 15%. And,

By the end of 2020, half of all large manufacturers will have automated supplier and spend data analysis, resulting in a 15% procurement productivity gain.” – MH&L Magazine

Shippers are recognizing this and have gotten on board in a big way. Two of the world’s leaders in moving containers, Maersk and DAMCO, are doubling down on streamlining logistics processes with higher integration of inland services. This will help shippers to route their transportation at reduced cost, as the two companies connect sea and land, beyond the port of call. Digitization plays a huge role in this integration, giving them access to real-time data and creating more agile and efficient processes and operations.

See more 2020 supply chain trends to watch here.

6. Beyond greenwashing – Demand for truly sustainable products/services increasing

Research is showing that people are voting for sustainability with their wallets. According to a 2019 study by NYU Stern’s Center for Sustainable Business, 50% of the growth in consumer packaged goods from 2012-2018 came from sustainable products, accounting for 16.6% of the total market. That’s a 29% jump in that five year time period.

A recent report from the International Trade Centre found that consumers in the EU are increasingly seeking sustainable and ethical products and have increased savviness on what makes a product or company truly “sustainable.”

The numbers are compelling –

85% of retailers report increased sales of sustainable products over the past five years and 92% of retailers expect sales in sustainable products to increase in the next five years.

The message from the report is clearly summed up by Arancha González, Executive Director, ITC in the introduction:

“This report carries an important message for small businesses seeking to export to major industrial nations in the European Union: Retailers consider sustainability key, when buying from suppliers.”

We’ll be watching to see how impactful the growth of sustainable business practices and purchasing behavior is in 2020, and how businesses respond.

7. Localization in supply chains and communications

The last three trends – tariff work arounds, new supply chain tech, and increased demand for green/sustainable goods – together usher in a new era of localization. Businesses are looking for ways to bring manufacturing closer to their consumers, allowing them to sidestep tariff uncertainty. They are engaging new tech in wringing every last drop of inefficiency and waste out of their supply chains, a move that will please their climate conscious consumers.

As consumers are getting increased access to a wider range brands and products and the concern for climate issues accelerates, many are also turning to products and services that speak more directly to them and come from closer by. Here’s where the other type of localization – adapting your product or service to a local market – will be increasingly important into 2020.

The need for proper translation and transcreation is growing, alongside machine translation and video creation.

8. SMEs going global from the outset

Today, more companies are born with a global mindset than ever before. Companies are often factoring in global market entry from the outset, and a majority are planning on going into at least one international market within the first five years. This is a major change from the recent past where international business was seen as a large corporation’s game.

According to Rochester PR Group’s UK Market Entry Index,

“64% of Canadian respondents stated that the vision for their companies had always been global rather than local. The peak age of a Canadian business first starting to trade overseas was 2–5 years at 39%, compared to 23% for under a year.”

In an article for Hockeystick Deanna Horton, a Fellow at the University of Toronto’s Munk School of Global Affairs and Public Policy explains further,

“One always thinks that companies, especially small companies, need to be a certain size before they expand to other markets. But the digital economy is different. Canadian tech companies in particular are going global from a very early stage. For them, going global means opening a small office with a few people in another country. So, it’s not always as complex as it can be for manufacturers.”

But many SMEs still feel too intimidated or unprepared to make the international leap. Here’s where training in the right areas can make a big difference in a company’s global market entry success. Doing the right research to be prepared to face the local competition, draft your business plan, build the right team, and adapt your products/services are the main keys to success. Fortunately, there are a multitude of training, resources and support for businesses preparing to make the journey.

9. Consumer-driven data privacy

Privacy issues have been in the spotlight over 2019 with several large organizations being scrutinized for data leaks and questionable practices. With the implementation of the European Union’s General Data Protection Regulation (GDPR) in May, 2018 companies were more or less forced to sit up and take data protection seriously.

Into 2020 companies will continue to feel the implications of GDPR around the world, and other regulations are making their way through approval processes as well, such as the California Consumer Privacy Act (CCPA) which will come into effect on January 1, 2020. South Korea and Brazil are also working on similar protection policies.

E-Privacy and the transferring of personal data will also be under the microscope this year, along with the application of artificial intelligence technology. Companies who have put little priority into complying with privacy regulations should re-evaluate their stance, as more companies are being outed for breaches in privacy and data leaks, which comes with fines, fees, and often significant losses.

We’ll be watching to see how oversight and consumer behaviour changes alongside the developments in online technology in 2020.

10. Global trade volatility easing

After a few years of increasing uncertainty and upheaval, most outlooks are finally showing a trend for an easing of global trade volatility into 2020.

Towards the end of 2019 massive uncertainty around the state of North American trade relations started to dissipate with some of the last hurdles being cleared in the ratification of the United States Mexico Canada Agreement. Canada and the U.S. agreed to revised terms in December and it is expected to be signed in early 2020.

Tensions between China and U.S. that have seen the U.S. impose tariffs on more than $350 million worth of Chinese goods have been eased by “phase one” trade agreement reached last week. Already additionally scheduled tariffs have been cancelled and  some of the existing ones have been cleared as well. Exporters dealing in the regions can breathe a tentative sigh of relief for the year ahead.

In the UK, Brexit uncertainty seems to be clearing as well after a decisive election has paved the way for the conservative party to move forward on their plans to leave the European Union. It remains to be seen what Canada’s trade relationship with the UK may look like after the UK-EU split.

Another massive piece of trade policy is on track to be signed in 2020. The world’s largest ever trade agreement, the Regional Comprehensive Economic Partnership or RCEP, is made up of 15 mostly Asian nations and includes all 10 ASEAN members as well as China, Australia, New Zealand, Japan and South Korea.

If the last few years have taught us anything, it’s that in the global trade environment, nothing is certain and staying on top of the latest developments is the best way to plan for the years ahead.

Here’s to a peaceful and prosperous new decade!

The post 10 global trade trends we’ll be watching in 2020 appeared first on Trade Ready.

What 2019 global trade trends should you be looking out for? Here’s a preview of what could be dominating the headlines and your work conversations throughout the next 12 months.

1. Will the new USMCA be ratified?

After over two years of anti-NAFTA rhetoric from President Trump and many rounds of negotiations, a replacement deal to govern North American trade, the US-Mexico-Canada Agreement (USMCA) was finally signed by the leaders of Canada, the U.S. and Mexico on November 30, 2018.

Before coming into effect, however, the deal must be ratified by the legislatures of all three countries. This step could be particularly challenging in the U.S., where a newly elected Democratic Congress may object to some aspects of the deal or simply be unwilling to give Trump a victory on the issue.

While the general sentiment is hopeful for a full ratification in 2019, a significant roadblock in any of the three countries could leave the issue open-ended for at least several more months.

2. Brexit is coming

With a March 29, 2019 date set for the UK to officially leave the EU, Theresa May’s government has little time left to gain domestic support for the Brexit deal she has negotiated. While a December vote was postponed due to a lack of support, May has survived a non-confidence vote and re-scheduled the Brexit vote for the week of January 14.

If a deal is not reached by the March 29 deadline, the UK will face a “hard Brexit” with no guidelines determining significant UK-EU issues like the Irish border, migration, travel, and trade. Despite UK government plans for this contingency, a no-deal Brexit could send the British economy spiralling downward with negative implications for the global economy as well.

3. Is your data safe?

As major corporate data breaches become increasingly common headlines, and the value of data seemingly increasing every day, companies face a conundrum: how can they gather the data they need, but also keep it safe?

Adding extra levels of online security and authentication for customers, as well as changing internal processes to improve passwords, store data more securely and eliminate potential security gaps may all need to be added to your 2019 to-dos to ensure a high level of trust between you and your customers, suppliers and partners.

4. Addressing gender inequality to improve economic opportunities

Despite a growing awareness and focus on the importance of women’s entrepreneurship, studies show that many challenges remain. According to a policy research paper published by the World Bank, the “gender gap in business ownership remains high in many economies around the world”, and “the gap in female entrepreneurship is especially apparent in low-income economies, where women are much less likely than men to start a new business.”

New research from PayPal Canada and Barraza and Associates also indicates that in Canada, “on average, women-owned businesses earn $68,000 less than men who run similar businesses.”

As issues like access to venture capital and corporate procurement opportunities continue to face women-run businesses, one area of success is in e-commerce businesses. 50% of new e-commerce businesses started in the last two years in Canada are run by women, compared to just 34% 10 years ago.

5. AI tools becoming increasingly commonplace

AI has several applications in international trade, from analyzing metrics and economic trends or optimizing warehouse and inventory management to linguistic translation and online sales or chat services, not to mention exporting AI tools themselves.

As technology is refined and these tools are more widely understood, questions regarding data security and IP protection are starting to come to the forefront. But for businesses willing to take the leap, AI has the potential to transform some of their business practices and give them a competitive advantage in their industry.

6. The CPTPP comes into effect – how could it affect you?

As of December 30, 2018, the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) comes into effect. This trade deal replaced the TPP after President Trump withdrew the U.S. from that agreement in January 2017 but still includes the other eleven countries from that deal: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The agreement removes the vast majority of tariffs and other trade barriers, and enforces new standards for human rights and environmental and labour practices.

Will there be a noticeable increase in trade between businesses in these countries? And with opportunity for new countries to join the deal at a later date, could early successes entice any other countries to take steps towards entering the agreement?

7. The fading appeal of Bitcoin and other cryptocurrencies

A year ago, the potential for Bitcoin or other cryptocurrencies to serve as a transformative tool in global finance seemed high. Bitcoin’s value had never been higher, and increasing numbers of banks and other financial institutions were taking steps into the cryptocurrency arena.

What a difference a year can make.

After a December 2017 high of $20,000, Bitcoin is currently valued around $3,500. Other major cryptocurrencies are also valued at 85-90% below their all-time highs. Public excitement has turned to skepticism in some corners, or concerns about fraud and scams in others.

Even if values increase in 2019, significant changes will be needed to restore trust and support in cryptocurrencies before its wider acceptance in international trade can be re-considered.

8. Accelerated growth of service export industry should continue

Service exports can cover a multitude of areas: international customer service, financial, legal or consulting services, research and development, online services and platforms, and more.

In Euler Hermes’ 2019 forecast, they predict service exports to be the fastest-growing trade economic sector, with an estimated global growth of $365 billion USD, similar to 2018 growth levels.

As service export opportunities continue to grow in the world’s largest economies and emerging economies alike, businesses should look for ways to expand their service offerings through methods like servitization, or service exports directly connected to your existing product exports.

9. Personalizing is key to reach new customers or businesses

With the increasing numbers of ads, emails and content out there competing for attention, more businesses are trying to apply the personal touch in an effort to stand out.

From using increasing amounts of data to target specific ads to personalizing email offers and even web pages around user behaviour and interests, there are more ways than ever to make someone feel like your efforts were created just for them.

On the other side, businesses are increasingly turning back to old practices that had fallen by the wayside. Personal calls, direct mail and printed media like magazines or booklets are returning to the marketing playbook, as what was once cliché is now a novel or unique approach again.

10. Small businesses need employees ready to help grow and expand to new markets

According to a Business Development Bank of Canada (BDC) survey, about 40% of small businesses are unable to find the right employees to grow. EDC also noted fewer Canadian businesses are newly exporting or planning to export to new markets in the near future.

To overcome these challenges, small businesses require employees able to research international markets, assess potential risks, create and implement market entry strategies and manage the international logistics, finance, marketing and sales, and other areas.

Looking for practical, flexible training to take your business into new international markets with confidence? Check the full list of EDC-FITT online courses and workshops to see which options work best for you.

We face an eventful year ahead, full of innovation, political risks, and important new opportunities for business growth.

What trends will you be most interested in throughout 2019?

The post 10 global trade trends we’ll be watching in 2019 appeared first on Trade Ready.

What should you look out for or expect in the international business world in 2018? Let’s take a look and see what could be dominating the headlines you read over the next twelve months.

1. The CPTPP

Though President Trump withdrew the U.S. from the TPP in January, the remaining 11 countries are working to resurrect the deal as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This deal, if signed, would eliminate approximately 95% of tariffs on trade between these countries, who have a combined GDP of over $10 trillion USD.

In November, Canada surprised the other 10 countries by declining to sign the agreement, to the surprise of the negotiators and the Canadian international trade community. However, amid efforts to diversify exports beyond the American market, it seems unlikely that Canada will continue to drag its heels on an opportunity to gain preferential access to the Japanese market in particular. Expect any final issues to be resolved and the CPTPP to be signed sometime in 2018.

2. Ongoing, contentious Brexit talks

By December 2017, the UK has completed the first phase of Brexit negotiations with the EU, covering issues such as the Irish border, citizens’ rights and financial settlements. The second phase of negotiations will cover the UK’s transition period after formally leaving the EU in March 2019. Discussions over the long-term relationship between the UK and EU will be included in phase three.

This process was complicated on December 13, when several Conservative British MPs joined the opposition to vote for an amendment requiring British Parliament to debate and vote on any final deal with the EU before it can be approved.

The second phase of Brexit negotiations are planned for 2018, and are expected to present few greater challenges than the first phase. The final phase on the long-term relationship between the UK and EU, however, presents several important questions about economic integration and free trade that Britain’s politicians and citizens have not yet agreed upon.

With two sets of challenging negotiations, and the extra hurdle of parliamentary approval, the odds that talks will drag into the final three months before the UK leaves the EU on March 29, 2019 remain high.

3. Sustainable, cleantech exports

If you’re involved in the clean tech and sustainability sector, 2018 should be a strong year for you. Despite the U.S. withdrawal from the Paris Agreement, global regulations are still trending towards stricter environmental and emissions regulations, requiring businesses to invest in cleaner technology in order to meet those standards. According to EDC President and CEO Benoit Daignault, total global investment in cleantech has now exceeded $1 trillion and will reach $2.5 trillion by 2020.

Canada in particular is placing great emphasis on this industry. The Canadian government promised $1 billion towards clean tech in its 2017 budget for R&D. The Trade Commissioner Service is also hiring 15 new Trade Commissioners to focus specifically on cleantech.

4. India, Brazil, and New Zealand – the rising stars of global trade

If you’re looking for new markets over the next 12 months, Morgan Stanley recommends you take a hard look at India. They argue the country’s increased digitization, new tax laws and younger demographics present a bright future, and predict 7.5% GDP growth in 2018. Morgan Stanley also predicts that India will be the world’s fastest growing economy over the coming decade.

Brazil will also see a quick recession recovery, growing an expected by 3.1% in 2018, according to the Brazilian government.

If you’re more interested in fully developed markets, Forbes ranked New Zealand second on its 2018 Best Countries for Doing Business rankings, citing its 3.6% economic growth in 2017, among other factors. The country also ranked highly in several categories for ease of doing business, including first in IP rights, bureaucracy/red tape levels surrounding business, and Transparency International’s Corruption Perception Index.

5. Meaningful action to reduce oil dependency

As Venezuela continues to suffer through the collapse of its oil-dependent economy, and the U.S. plans to become a net exporter of oil within 10 years, several oil-dependent economies are taking steps to diversify their economies.

In Russia, Putin’s approval levels are dropping as the economy struggles through lower oil revenues. Despite making fiscal changes to reduce the national budget’s dependence on oil revenues, he may push for new measures to improve his chances in the country’s 2018 presidential elections.

Saudi Arabia has plans to sell about 5% of Saudi Aramco, the state-owned oil company, through an IPO in 2018 and expects to generate up to $100 billion for the country’s Vision 2030 program, designed to shift the Saudi economy away from oil dependency towards tech and entertainment services.

Nigeria and Angola, meanwhile, are looking to agriculture to reduce their oil dependency issues. Nigeria, dependent on oil for 70% of government revenues, has launched a new program to increase yam exports to Europe and the U.S., as the country produces 60% of the world’s yams. Angola are instead focused on a broader approach to tap into their agricultural potential, which includes producing more cereals, milk, chicken, cassava, and other products.

6. Banks taking on blockchain

It is practically impossible these days to tune into the business or financial news and not hear a story about the latest blockchain or cryptocurrency development. Blockchain technology, allowing multiple players to have access to a live, unalterable digital ledger, offers game-changing possibilities for international trade finance. In 2018 this buzzworthy fintech is moving beyond Silicon Valley start-ups, into the mainstream world of global financial institutions.

In March, 2017, we reported on how banks were working to bring the advantages of blockchain technology to their corporate clients. In May, the R3 Consortium, made up of of 70 of the world’s biggest financial institutions and created to research and develop blockchain adoption, announced it had secured its largest ever investment. Then in October 2017, seven major banks partnered with R3 and Finastra to develop a blockchain-based marketplace for syndicated loans. On December 6, Amazon joined the blockchain party, announcing a partnership with R3 to allow the Corda platform to be the first distributed ledger technology to operate on the Amazon Web Services Platform.

What will we see in 2018? Swiss global financial company UBS has led an initiative to create a “utility settlement coin” that would represent each major national currency. If this coin is launched, the Corda platform could be adapted to facilitate its use.

IBM is working on launching their own blockchain platform that would allow banks to rapidly clear global payment transactions. There are also several start-ups working on digitizing the bill of lading process.

2018 could be the year some of the blockchain-based payment initiatives move from development to adoption.

7. Adoption of futuristic supply chain technology

Machine learning, automation and robotics, self-driving vehicles, new tracking technology – all of these futuristic supply chain tools will see major developments and implementation in 2018.

The past year was a big one for self-driving vehicles, culminating with the reveal of Tesla’s new fully electric semi, gaining pre-orders from big players such as PepsiCo, UPS and Walmart. Companies invested over $1 billion into self-driving and other trucking technologies in 2017.

Speaking of investing in supply chain technology, over $4 billion was invested in AI by U.S. venture capitalists in the past year. One application that has seen immediate return for companies adopting machine learning capable AI is Multi-Echelon Inventory Optimization (MEIO), which has been shown to reduce inventories by 30% while maintaining or improving customer fill rates.

Robots will also continue to play more of a role in warehouses in 2018. While some are increasingly capable of working independently, replacing human workers on the floor, others are working alongside humans, or being controlled by humans using VR applications. There’s no doubt that the demand for the skills needed to work with robotics will continue to rise in the year ahead.

8. Planning for the possibility of a world without NAFTA

The sixth round of NAFTA talks is set to kick off in Montreal January 23. But as the negotiations near, there doesn’t seem to be a lot of positivity. The first five rounds reportedly saw very little progress, putting even more pressure on this next round.

What’s the problem? The U.S. is seemingly immovable on five issues that pose major problems for the agreement’s other two member countries, Canada and Mexico.

The five issues include:

• Removal of reciprocity in government procurement at the sub-national level
• Changes to the rules of origin in the auto sector
• Elimination of the independent dispute resolution clause
• End of Canadian supply management of the dairy, eggs and poultry industries
• Addition of a “sunset clause” on NAFTA itself

“NAFTA, by itself, will not collapse,” said Mexico’s Economy Minister ldefonso Guajardo in October, but even if Mr. Guajardo is right, it may change drastically from what we have in place today.

If this really does spell the end of NAFTA, the Canadian auto, pulp and paper, chemicals, mining, aerospace and oil and gas industries are likely to be most affected, according to BMO chief economist Douglas Porter.

Even without NAFTA, trade between the three nations is inevitable. Supply chains between Canada and Mexico criss-cross the U.S. How businesses adapt to the realities of a new – or non-existent – NAFTA, is something we’ll be watching closely in 2018.

9. Cyber threats and IP risks

As technology gets more sophisticated and ingrained in our work and personal lives, so too does the threat of cyber security breaches, which in turn compromises our intellectual property. Sixty-four percent of companies surveyed reported some experience of web-based attacks in the past year. Companies of all sizes are targeted and face the risk of cyber threats from simply being connected to the internet. And the costs are large – the average cost of a data breach in Canada is a jaw-dropping $6.03M.

So what types of threats are growing in 2018? Phishing, social engineering attacks, malicious code, botnets, denial of service attacks and ransomeware are all on the rise.

Ransomware in particular is growing in frequency, attacks rose an alarming 50% in 2016. Demonstrative of the damage a ransomeware attack can cause was the aftermath of the WannaCry attack in May 2017. Hundreds of thousands of individuals lost access to their data, compromising intellectual property, private customer information, and disrupting commercial processes.

As a business, it has never been more crucial to include cybersecurity programs directly in your strategy, and engage IT professionals to help cover all aspects of your web-based properties.

10. Demand for global trade skills higher than ever

Despite continuing turmoil and uncertainty on the global political stage, Canadian businesses still hold an optimistic outlook about their export opportunities. According to Export Development Canada’s Fall 2017 Survey, the majority of respondents believe that export sales will increase in 2018, citing new opportunities, growing demand, and expansion into new markets as stimulating factors.

As more businesses of all sizes get involved in international markets, the demand for talent skilled in global trade processes, is also growing.

“We hear from exporters all the time that knowledge is one of the most important tools for building international success,” said EDC Senior VP, Business Development Mairead Lavery.

In 2017, the FITTskills international trade training program underwent a major update, including the addition of 60% new content to reflect the changes we’ve seen in technology, ecommerce, trade agreements and more. In October, FITT also partnered with EDC to expand access to the available resources for businesses of all sizes looking to take advantage of international opportunities.

There’s no doubt that we all face an exciting year ahead, full of innovation, an ever-shifting global political environment, and risks, alongside ample new opportunities for business growth.

What trends will you be watching in 2018?

The post 10 global trade trends we’ll be watching in 2018 appeared first on Trade Ready.

Since the Brexit movement succeeded in the UK, there have been rumblings that the UK could find a new trading niche with NAFTA. That long-shot idea seems more of a possibility as the UK struggles to strike a post-Brexit trade deal with the European Union.

Amid concerns that Britain, the world’s fifth largest economy, could be left without a trade bloc when it’s released from the EU in March 2019, the UK’s administration is reportedly taking a serious look at the ramifications of joining NAFTA.

The UK’s Telegraph reported in mid-October that a UK-NAFTA deal could be in the works. Since then, the idea of a trans-Atlantic trade partnership between the UK and North America has earned both praise and criticism. On one hand, a partnership with NAFTA could ease Britain’s transition away from the EU. On the other hand;

A partnership with NAFTA — its own fate uncertain under the Trump administration — could prove a difficult transition for British companies looking to export to Canada, the United States and Mexico.

The UK and NAFTA: An easy transition?

If there’s one great advantage to the UK finding a post-Brexit home with NAFTA, it would be that the UK would be moving from one large trading bloc to another. While NAFTA reigns as the world’s largest trading bloc, in terms of GDP, the EU isn’t far behind.

The combined GDP of NAFTA member countries are more than $22 trillion, while the combined GDP of the EU member countries is just under $21 trillion. That means the UK, which currently sends half of its imports to EU member countries, could find valuable new trading partners on the other side of the Atlantic.

With NAFTA, British officials also could find trade partners who are eager to form ties with the post-Brexit UK.

While British officials have struggled to advance a new trade deal with the EU — some officials say there’s only a 50% chance a deal will be struck with the EU — politicians in North America have expressed a willingness to accept Britain into the fold.

In the United States, President Donald Trump has long said he would be first to strike a trade deal with the UK after the passing of Brexit. Canadian Prime Minister Justin Trudeau has also expressed his desire to form a free trade deal between Canada and the independent UK.

The difficulties with a UK-NAFTA partnership

Signing Britain on to NAFTA might not prove the quick solution to post-Brexit trade for the UK, however. First and foremost, the future of NAFTA itself is largely uncertain.

Trump campaigned on dissolving the 25-year-old trading bloc as part of his “America First” policies. While he seems to have softened his language on NAFTA — expressing a willingness to rework the deal with Canada and Mexico rather than outright canceling the deal — it remains to be seen what the future will bring for the trade deal. That makes relying on NAFTA as the cornerstone of trading future for the UK could prove perilous.

Joining NAFTA also would bring about serious change for UK-based exporters. While the EU had its own set of strict guidelines, companies would have to adapt to NAFTA standards. That would mean using more products and supplies from NAFTA trading partners and knowing how to fight off potential disputes under NAFTA’s governing policies. It remains to be seen how many UK companies would be willing to adapt and how many would relocate to continue to operate under EU rules.

The future of Britain and NAFTA

The rumors about Britain’s potential joining with NAFTA underscore the uncertainty surrounding trade deals in a post-Brexit world.

With a trade deal between the EU and the UK on the ropes, British officials have declined to comment on a potential joining of NAFTA, other than to say they are exploring all possibilities for free-trade deals.

Meanwhile, those with a stake in international trade are still waiting to see how NAFTA could morph under the Trump administration.

The post Could the UK really join NAFTA? appeared first on Trade Ready.

Imagine this situation: You are an exporter driving southwards on your favourite highway and ahead you see red traffic cones and barriers in the way. You are forced to slow down and notice that some of the barriers have the words “NAFTA debate”, “Soft-wood lumber disputes”, “Dairy regulations” and “Other competitors’ products” on them. You instinctively reach for your GPS to recalibrate, but your fellow passengers tell you “keep going, let’s see what happens”.

Don’t just stand around – do something!

Many Canadian exporters are hoping that the current phase of U.S. protectionism will not be too serious and that given time, cooler heads will prevail. However, apart from any potential changes to NAFTA, there are other important changes taking place in world markets that could affect Canadian exports.

For example, foreign government elections could affect our trading partnerships; many world leaders are changing their attitudes towards international relationships (e.g. Brexit); major environmental changes are affecting people throughout the world; electronic hacking is changing global communications, etc. All these changes make it increasingly difficult for Canada to rely on traditional alliances to plan for our trading future.

Instead of a passive “wait and see” attitude, perhaps it is time to look more aggressively for alternative export markets and recalibrate the Canadian exporters’ Global Positioning System towards other directions.

There is a wealth of up-to-date data, detailed reports and real-time market intelligence available through federal and provincial government sources. This practical, current and timely information is collected by hundreds of locally-engaged sector specialists, who have been hired from local industries by almost 260 offices in 150 countries around the world. They have been hired for their experience and contacts in specific business sectors and their job is to search for export opportunities for Canadian businesses.

These talented professionals have a great deal of real-time information on current on-the-ground marketing trends, and intimate knowledge of what specific products are sought by local importers abroad. Unfortunately, this knowledge is often denigrated by “blood-and-guts” exporters who wrongly claim that civil servants know little about the day-to-day realities of exporting.

Taking a practical look at the available options for Canadian exporters

In view of our unsettled exporting future, this writer decided to look for potential export markets which do NOT fall into Canada’s established and traditional markets. The top 28 destinations for Canadian exports, according to Global Affairs Canada, include the U.S., China, UK, Japan, Mexico, South Korea, Germany and India. But this list fails to include many other smaller and lesser-known, but still worthwhile markets like countries in North Africa, Brunei, Thailand, Trinidad and Tobago and others.

At random I chose “Consumer Products” and “Transportation” as export sectors and searched for information on the Trade Commissioners Service (TCS) website. I sought data on the top foreign markets which the trade commissioners abroad reported as the best opportunities for export.

Consumer Products

1. The TCS identified the top potential markets for Canadian consumer products as Bangladesh, Finland and Germany.
2. I picked Finland and searched for Finnish importers. Several company profiles, data on 2017 consumer trade shows taking place in Helsinki, and directions on how to export to Finland and Scandinavia were listed.

Transportation

1. At random I picked Kenya and found a list of 25 importers of transportation-related products with full contact information and the territory they cover.
2. These 25 companies are seeking auto parts, engine parts, automotive electrical equipment, engines, pumps, tractors, electric motors and other equipment.

While the TCS website was encouraging, I decided to take the opposite approach and (again at random) picked Thailand as a target country. I Googled  “Thailand Importers”, which provided a link with 18 names and addresses of importers, distributors and trading houses, all seeking to buy a wide range of foreign products including softwood lumber, woodworking machinery, furniture and garden products. In addition, when I Googled “Thailand Import Agents”, there were listings of commission agents seeking to represent foreign exporters of various products including food, paint, medical devices and chemicals.

A great reputation and hard work will open doors

While the above are mere examples, and many variables would affect successful export contracts (including competitive pricing, transportation costs, import tariffs, etc), successful exporting to new markets is based on the following facts:

1. Our Brand. That all-important first contact with potential international customers is easier because we have the greatest door opener in the world: the Canadian brand. Our reputation immediately opens doors all over the world, giving any Canadian exporter a salesman’s vital “foot in the door”.
2. The 200-20-2 rule: Anyone who has worked in a call centre or made “cold” calls knows these numbers. They work in any business development activity, in any country, and in any product sector. The concept relies on percentages: if you make about 200 calls you will develop approximately 20 new contacts, and they will invariably produce 2 export deals.
3. Knocking on doors. There is an inescapable logic that states that “if you don’t knock on the door, nobody will open it”.

Let’s knock on new doors by recalibrating our exporters’ GPS (after all, it IS global) and look for other destinations for our exports. They may not be as easy and accessible as our traditional U.S. market has been, but with a little effort and imagination Canada does not have to “wait and see” but can take proactive steps to becoming a truly global exporter.

The post Why it’s time to recalibrate Canada’s exporting GPS appeared first on Trade Ready.

As populist nationalism surfaces across the globe from the U.S. to Europe, Russia and India, adverse effects on free trade are no longer a possibility, but a reality.

In Europe Brexit may only be the beginning. Though Macron’s victory seems to have put an end to Frexit concerns for the time being, Grexit remains a distinct possibility in Greece, and after the Renzirendum, the Italian referendum last December that caused Europhile Prime Minister Renzi to step down, the term Quitaly also popped up.

In the U.S., travel bans, visa restrictions and publicity about both have already cost the U.S. significantly in the loss of tourism and business income. The U.S. President has revoked American participation in the Trans-Pacific Partnership (TPP), and in doing so also killed the Transatlantic Trade and Investment Partnership (TTIP). Trump has also targeted NAFTA, causing Mexico and Canada to wonder if North America will be taking a step backward in business collaboration.

Also in the Americas, a Latin-American free trade zone has been going nowhere for decades. This January, however, the Latin American Integration Association (best known by the acronym for its Spanish name, ALADI) tried to breathe new life into it in light of what´s been happening north of the border.

Closely tied to increasing barriers to trade are impediments to the free movement of labor. Global businesses rely on a diverse workforce, and restricting immigration does not do them any good. Just witness the reaction of many Silicon-Valley multinationals to the travel ban decreed by the new U.S. administration.

Politics is changing the field for global business

Much of global politics for the past few decades seemed to agree with the economic theory that factors of production are best utilized when they are free to flow towards their most efficient use. That was the logic behind, for instance, the European Union´s Schengen Agreement in 1985, aimed at doing away with border controls. In 2016, however, as a reaction to the European refugee crisis, border controls were “temporarily” reinstated in seven countries (Austria, Denmark, France, Germany, Norway, Poland, and Sweden).

Meanwhile, in Asia, The Economist reports on impending labor shortages in countries like China or Thailand. Unfortunately, immigration and visa regulations hinder immigration from countries with labor surpluses like the Philippines or Bangladesh.

All this political mayhem coincides with the reported retreat of the multinational firm, per The Economist. According to their numbers, the profits of multinationals as a group have dropped by 25% in the span of only five years. And politics has little to do with it. Instead, a combination of maxed-out economies of scale and tax arbitrage comes into play. Many multinationals are just too big to be successful. And arbitrage has brought the tax burden as low as it can go.

Moreover, it is not only multinational corporations that feel the heat. In an increasingly complex world, small and medium-sized companies can be hard-pressed to find the resources to navigate the waters of international business.

So, in some ways, it seems that the runaway success of globalization over the past 20-25 years has sown the seeds of its own troubles. As wealth shifts around the planet, steelworkers in America’s Rust Belt stare into the abyss, the “huddled masses” in Africa go looking for greener pastures, and the rising middle class in China´s megacities scrambles to hire illegal domestic workers from the Philippines.

Clearly, the world has changed. And clearly there are some dark clouds on the horizon. What should global business leaders be doing in this uncharted territory?

10 ways you can do what’s right for your business

In the end politicians don’t do business. They only have the ability to either get in the way, or to help facilitate more success. Either way, it’s up to business leaders to get the deals done and to export and import, as well as encourage tourism and investment. We simply need to keep the faith and move forward.

We should have faith that trade is good. Push past any populist noise to do what is right for your business.

Whether you’re in the U.S., Europe, Africa or Asia, 85% or more of new opportunities in the next 5 years are somewhere else outside of your country. Go for it!

Here are some tips you can use to grow globally and successfully:

1. Listen to your tribe. Know your customers and listen to their pains and needs.
2. Create joy for your customers. Keep customers satisfied and wanting more from your team.
3. Globalize. Whatever it’s called and in whatever form it takes, globalize your firm. Prioritize your growth opportunities and execute effectively.
4. Leverage technology. More than ever technology will drive the opportunities, from artificial intelligence, to machine learning, big data and more – be familiar.
5. Have a global vision. View the world holistically and be aware of low hanging opportunities.
6. Stay focused. Keep the main thing the main thing.
7. Add diversity. Add people from different cultures and of different ages, especially young people, to your team. They’ve grown up in the internet age and will help keep you on track.
8. Improve communications. Know your message and keep your team and community aware of progress and next steps. Don’t fear repetition.
9. Stay ahead of shifting news. Keep your ears open for the latest news and make quick decisions.
10. Adjust as you go. Be faster, better, and more flexible than your competors.

Speak now or forever hold your peace

Business leaders must remember that consumers around the world are the primary drivers of the economy, not politicians. In an extreme case like Venezuela, politicians can completely destroy an economy with comprehensively bad policy. But in that case, business leaders have not been given a chance to provide their input in order to help.

In most countries in Europe, Asia and the Americas, business leaders have a voice and typically are not shy to share their opinions. You shouldn’t be either. Speak out for your business and trade in general, and push forward with the tips above, and we’ll all be the better for it.

The post Will populist politics pull the plug on trade progress? Survival tips for executives appeared first on Trade Ready.

Global trade is not your great-grandfather’s trading post anymore. Sure, we’ve always had trade. In fact, we’ve been trading for as long as we’ve been civilized. But up until more recently, there were a lot more of what I call “gentlemen’s agreements” (informal agreements between countries) than formal FTAs like CETA and NAFTA.

In today’s global trade environment there are also government policies to grapple with; and if that’s not enough to navigate, there are the near-constant changes in government that also affect trade agreements.

Changes in government, such as the outcome of the recent U.S. election, can also bring major shifts in policy, like President Trump’s rejection of the TPP free-trade deal.  Now, we know change isn’t always a negative thing, as sometimes it can bring opportunity. But sometimes it can also bring uncertainty, which is not a good scenario for those engaged in expanding their markets.

Imagine, people running around aimlessly making ill-informed decisions, decisions made out of fear and panic. DON’T PANIC.

So, what does this mean for North American businesses?

U.S. companies are looking for clients in their own domestic market, because of the uptake in the “buy local” movement and uncertainty elsewhere. Conversely, companies in other markets, such as Canada, are looking to diversify their markets, and quickly, in order to protect their revenue stream.  After all, at $350 billion in exports, the U.S. is Canada’s biggest trading partner by a landslide (Canada’s second biggest trade partner is the EU at a distant $40 billion). If they’re not buying, we must quickly find who is, to sustain our economy.

Take Atlantic Canada, for example. If the U.S. steers sharply to the “buy local” movement, who is going to buy our steady demand of seafood, lumber, agri-food, oil/energy, metal ore, and manufactured goods?  If we can’t export across a land border, because of new duties or restrictions being imposed, what does that do to the cost of exporting across an entire ocean?

Even for agreements that have not been squashed, such as CETA (between Canada and the European Union), the phasing out of tariffs will take several years. Our major industries will have to figure out how to restructure themselves quickly to rely less on the movement of exports across U.S. borders.  And it’s not just the movement of exports that is affected, but also the movement of people and labour.

Yet, as we concern ourselves with our volume of exports, with an aim to increase that volume to create jobs, we also need to think about the volume of imports.

Ideally both will be increasing, because an expansion of two-way trade means that we are nurturing not only our own job-creating industries, but also our consumers, whose standards of living are improved when they have a wealth of affordable imports to choose from.

Protectionism only hurts those it aims to protect

Falling back into a mode of protectionism is a bad idea.  First of all, who pays the cost of any tariffs we impose on imports?  It is our own consumers who are punished with higher costs.  Secondly, if we are depending on making imports pricier (or on making our currency cheaper) to support an increase in export manufacturing, we must remember that we are also increasing the prices that our manufacturers must pay for any imported inputs into their production process.

The interplay of global trade in supply chains has become so important that we should be careful not to shoot ourselves in the foot as we attempt to give ourselves a boost up.

On the other side of the Atlantic, the Brexit disrupted global markets, including currencies, and caused the British pound to fall to its lowest level in decades. On the bright side for Canada, this could create an opportunity for Canadian exporters to fill the void in the EU left by Britain’s exit. Assuming that the EU boycotts Britain’s exports, currently valued at £130 billion (compared to Britain’s exports to non-EU valued at £170 billion), this may also open a door for Canada to grow their exports to the EU.

In times of uncertainty, stay balanced

It seems clear we are entering what may be a difficult era in global trade, perhaps even of trade wars and currency wars, where many economies are convinced they must export their way to prosperity.  But danger lies in the fact that rewarding protected industries and their employees may involve punishing the citizens at large, with higher prices and fewer choices.

It is a complex balancing act, one often oversimplified by politicians and economists alike.  And any balance is subject to dramatic shifts as oil and commodity prices rise and fall, exchange rates shift, potential recessions and financial crises loom, and robotics and technology take their toll on some traditional jobs.

The post Today’s shifting global business environment – a view from Atlantic Canada appeared first on Trade Ready.

It’s no secret that the international business environment is currently going through a pronounced period of change, politically, geographically, and economically.

Some of this year’s biggest headlines followed trade-related events such as the Brexit and the U.S. presidential election, successful and halted trade deals such as CETA and the TPP and some major currency fluctuations around the world.

All of this change begs the question for businesses of all sizes considering going global for the first time – is now a good time to pursue importing and exporting your products and services?

We decided to pose the same question to some of the most knowledgeable global business professionals in the Twittersphere in our latest #TradeElite chat, and here’s what they had to say.

Moderator: Adrian Mutton (@AdrianMutton) Founder and CEO of Sannam S4 and U.S. Business Centers, based out of Washington D.C. and London, England.

Panelists: 

Clarecia Christie, CITP|FIBP (@ClareciaChriste) Project Manager and Team Lead, Trade Information Services at Trade Facilitation Office of Canada, based out of Ottawa, Ontario.

Idalia Obregon (@Idalia_Obregon) Executive Director at Belgian Canadian Business Chamber, based in Toronto, Ontario.

Craig Atkinson, CITP|FIBP (@CraigAAtkinson) Director, International Trade and Development Consulting with Lexmerca, formerly with the ITC, based in Halifax, Nova Scotia.

William Bush (@BillKBush) International Business Consultant, and Professor of US Foreign Policy, International Relations, Emerging Markets, Latin America-Caribbean, based in New York, NY.

Petra Benes (@PetraBenes) Owner of export development company @TopLatinExport, and Partner at Alliance Exports, based in the Netherlands.

Erica A. Murray, PhD (@EricaAMurray) iHeart Syndicated Radio Host, Author, Keynote Speaker, Dr. of Philosophy and International Business Consultant, based in Houston, Texas.

Bernadette Fernades (@On_the_varanda) Founder of the Varanda Network and international development expert, based out of New Brunswick.

Are nations’ imports and exports likely to a) increase b) remain the same or c) decrease with current global politics/economics?

A1 Countries always prefer to export more than to import but some really have to because of economic situation, like Brazil. #TradeElite

— Petra Benes (@PetraBenes) December 8, 2016

A1 there are a lot of variables to consider such as a country’s exchange rate, who are their trading partners #TradeElite

— Clarecia Christie (@ClareciaChriste) December 8, 2016

#TradeElite Despite Brexit and other economic and political developments, countries will increase their exports A1

— William Bush (@billkbush) December 8, 2016

#TradeElite While this economic environment may not be ideal for everyone, it has created the perfect opportunity for Canadian companies A 1

— William Bush (@billkbush) December 8, 2016

@craigaatkinson Are we likely to see a new set of cross border #Trade flows then? #TradeElite

— Adrian Mutton (@adrianmutton) December 8, 2016

@craigaatkinson @adrianmutton strongly agree. Issue is transition measures to cushion impact on protected sectors moving to free trade era

— John Treleaven CITP (@jht4x4) December 8, 2016

We will have to see but some political factors can definitely change the rules, for example with bans towards Russia. #TradeElite https://t.co/E2sZdm3ySj

— Petra Benes (@PetraBenes) December 8, 2016

How much should SME’s be following currency rates, and do they make a big difference to their export prospects?

A2. Currency rates greatly impact #buyerdecision so keep an eye out to determine priorities of where to #export your goods #TradeElite https://t.co/VORcL7BuPD

— bernadette fernandes (@on_the_varanda) December 8, 2016

A2: Both SME/large businesses, esp. those in GVCs, should be following currencies that impact operations and & where opps may be #TradeElite

— Craig A. Atkinson (@craigaatkinson) December 8, 2016

A2. Currency affect B2B transactions: selling price quoted to a buyer in a country where a drop in rates may be a loss to seller #TradeElite

— Clarecia Christie (@ClareciaChriste) December 8, 2016

A2 Currency is of huge importance to SMES, especially with globalized operations. #tradeelite

— ericaamurray (@ericaamurray) December 8, 2016

How aware are SME’s of FTAs (free trade agreements) and do these agreements really impact their import export potential?

A3 #TradeElite #CETA they’re definitely incentives for SME’s, however, its hard for governments to get feedback from SME’s and get…1/2

— Idalia Obregon (@idalia_obregon) December 8, 2016

A3 2/2 #TradeElite #CETA ..and get the right agts, plus is hard for SME’s to get the right info on agts from governments..

— Idalia Obregon (@idalia_obregon) December 8, 2016

A3 Lack of FTA should not be a reason not to/export. Must step up your game and it is then possible to get ahead of competition. #TradeElite

— Petra Benes (@PetraBenes) December 8, 2016

Q3 UNFORTUNATELY, SMES are unaware of FTA, but need to read more data to be well informed #tradeelite

— ericaamurray (@ericaamurray) December 8, 2016

A3. Most SME don’t know FTAs that exist I have had occassion where even an export promotion agency is not aware of one with Cda #TradeElite

— Clarecia Christie (@ClareciaChriste) December 8, 2016

A3 FTAs do facilitate trade but trade will happen with or without them #tradeelite

— Caroline Tompkins (@carolineFITT) December 8, 2016

Has exporting become a)harder b)easier c)much the same in the past 5-10 years? Why or why not?

A4 #TradeElite a)easier because of globalization, however we have new challenges too i.e. security, but we create new rules, we adapt & grow

— Idalia Obregon (@idalia_obregon) December 8, 2016

A4 #exporting is harder with increased competition; easier with FTAs & collaboration; the same cuz no nation is self-sufficient #TradeElite

— bernadette fernandes (@on_the_varanda) December 8, 2016

A4. According to EDC CAD Businesses can expect a 3% growth in exports of goods & services in 2017 @on_the_varanda @FITTNews #TradeElite

— Lynda Arsenault (@LyndaEllenA) December 8, 2016

A4 Its become harder and more difficult. At the same time there easier access to knowledge resources to support SME trade #tradeelite

— Caroline Tompkins (@carolineFITT) December 8, 2016

Will Donald Trump’s policies affect companies’ abilities to import supply chain components to the U.S.?

A.5 @realDonaldTrump will protect US businesses and jobs. Too early to tell what this platform means for the #supplychain. #TradeElite

— Michael Green (@MJGreen0101) December 8, 2016

A1 I agree Bill! Trump’s Trade War with #China & #Mexico provides an opportunity for non-US markets to step up their #exports #TradeElite https://t.co/Ap6IjCuME5

— bernadette fernandes (@on_the_varanda) December 8, 2016

A5 True. In addition to potential #supplychain impacts, we need to how the affects other country’s #trade policies & relations #TradeElite https://t.co/uBnCmClSbv

— bernadette fernandes (@on_the_varanda) December 8, 2016

Good question! I wonder whether @realDonaldTrump himself already has any idea? #TradeElite https://t.co/3OSPS0g2vV

— Petra Benes (@PetraBenes) December 8, 2016

Which countries are best placed to capitalize on global trade trends right now?

A6: As businesses trade, not countries, it is vital that gov ensures an enabling environment for trade #TradeElite

— Craig A. Atkinson (@craigaatkinson) December 8, 2016

I second that however government needs to engage business on expectation for international trade #TradeElite @carolineFITT @craigaatkinson

— Clarecia Christie (@ClareciaChriste) December 8, 2016

A6. I think Mexico could start to open up as I’m reading about how it’s trying to invest in infrastructure. #TradeElite

— audrey ross (@tresAudrey) December 8, 2016

A6 Countries that are positioned to trade #imports & #exports with #EmergingMarkets will see a reciprocal market capitalization #TradeElite https://t.co/3yMDdUIMUy

— bernadette fernandes (@on_the_varanda) December 8, 2016

Will Brexit and other political decisions make importing more restrictive/costly in the future?

A7. #Brexit will make us more creative to continue moving forward #TradeElite

— Idalia Obregon (@idalia_obregon) December 8, 2016

A7: Certain bilateral relationships will change, but multilateral efforts (esp. #Tradefacilitation) will net reduced risk/costs #TradeElite

— Craig A. Atkinson (@craigaatkinson) December 8, 2016

A7 Businesses are now hesitant to make major moves, opting to ’wait and see’… don’t wait, find an #InternationalTrade expert #TradeElite https://t.co/ok0KZl1TGR

— bernadette fernandes (@on_the_varanda) December 8, 2016

Is now a good time to start importing or exporting or both?!

A8 If you have the right strategy and the right people to implement it then its a good time to trade if it is profitable #tradeelite

— Caroline Tompkins (@carolineFITT) December 8, 2016

A8: It depends, but rhetoric is not a reason to dismiss opportunities associated with the promise of global #trade #TradeElite

— Craig A. Atkinson (@craigaatkinson) December 8, 2016

A8. Absolutely. More data available to help you make choices. More funding avail to help small biz get started. #TradeElite

— US Commercial Svc (@USCommercialSvc) December 8, 2016

A8 Now is the BEST time, but do ur homework 1st: do you know where ur buyers are, state of #freetrade agreements/tariffs, etc. #TradeElite https://t.co/8x0CK5Cjfb

— bernadette fernandes (@on_the_varanda) December 8, 2016

Read the rest of the chat and follow future discussions by following the #TradeElite hashtag. Stay tuned for the next #TradeElite chat, coming up Thursday, January 12 at 2:30-3:30PM ET.

The post Is now a good time to start importing or exporting? appeared first on Trade Ready.

As the dust settles following the UK’s vote to leave the European Union, politicians, financial institutions and businesses alike are trying to figure out how the UK will find a new path to free trade with the rest of Europe.

Experts point out that the UK could find relatively easy access to the European single market through the small European Free Trade Association (EFTA), but even that path to free trade could come with some difficulties.

What is the European Free Trade Association (EFTA)?

The EFTA is a trade organization that was founded in 1960 by 7 countries, including the UK. The association was formed as an alternative to the European Economic Community (EEC), the predecessor to the EU. The UK abandoned the association in 1973 to join the EEC.

Today, the EFTA consists of only four remaining countries: Norway, Switzerland, Iceland and Liechtenstein, all of which enjoy single-market access to EU countries through the bloc. EFTA member countries pay into EU programs, and must follow EU regulations under the terms of the European Economic Area Agreement, which governs the EFTA. However, EFTA countries do not have any vote when it comes to EU programs or policies.

Norway, existing FTAs present roadblocks to Britain

While Brexit supporters have looked at the EFTA as a possible solution to providing Britain with single-market access to Europe, entering the EFTA could pose a significant challenge.

To join the EFTA, the UK would require a vote of approval from the four exiting EFTA countries, and each of the four countries has the power to block British entry with a veto. Norway, the EFTA’s current economic power, has threatened to exercise its veto power. Norwegian officials have said that the UK could upset the economic balance within the trade bloc, as the UK’s economy is larger than the economies of any of the countries within the bloc.

It’s not certain that it would be a good idea to let a big country into this organization. It would shift the balance, which is not necessarily in       Norway’s interests. – Elisabeth Vik Aspaker, Norway’s minister of EU and EEA affairs 

Norway has not shut down the possibility of the UK entering the EFTA entirely, however. While some Norwegian officials have worried about the loss of Norway’s power within the trade bloc if the UK gains entry, other Norwegian officials have speculated that the country and the EFTA would benefit from the economic strength the UK would bring to the group. Norwegian officials are reportedly in talks with Brexit Minister David Davis on the possibility of UK entry into the EFTA.

Another major concern with the UK’s entry into the trade bloc is how that entry would impact other EFTA trade deals. The EFTA has free-trade deals covering 38 countries, including Canada, Mexico, Colombia, Peru, Hong Kong, Korea and Turkey. There is speculation that the addition of the UK to the EFTA would require renegotiation of the bloc’s existing 27 free trade agreements.

Britain’s economy needs single-market access

The UK sends 44 percent of its exported goods and 39 percent of its exported services to EU member countries, making access to the European market a crucial part of its trade economy. That means that in the wake of the Brexit vote, the UK has a lot to lose economically.

Following the vote, the country’s Purchasing Managers’ Index — a measure of manufacturing output and a key economic indicator — suffered its largest one-month drop since 2009, when the global recession was at its worst. A survey by two British human resources firms said one in six British companies were considering relocation to other EU countries as a result of the Brexit.

A report released earlier this month by the Institute for Fiscal Studies (IFS) projected that the UK would lose 4 percent of its GDP by 2030 as a result of leaving the European Single Market.

The IFS report emphasized the importance of membership into the EU’s free market through the EFTA, as membership into the market achieves more than access through a trade deal. With membership, tariffs, licenses and other barriers to trade are removed in a way that trade deals alone can’t accomplish.

Single-market membership could lessen the impact of the Brexit on the British economy. With that in mind, Britain’s new Prime Minister, Theresa May, has pledged to formulate a Brexit plan that allows the UK to remain a part of Europe’s single market.

Other options to access EU aren’t ideal

For the UK, the EFTA provides the quickest route to accessing the EU’s single market. Britain is expected to officially make its appeal to leave the EU early next year. Once they do, the UK and the EU have two years to execute an exit plan, though that deadline could be extended if both groups agree upon an extension.

The only other route the UK could seek to formulate access to the EU is to strike an independent trade deal with the trading bloc, something that would likely take much longer than the two-year Brexit timeframe.

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