Getting to Global and the Forum for International Trade Training (FITT) partner to empower businesses to export with confidence through exclusive online training offerings from the acclaimed FITTskills program and CITP®|FIBP® certified industry experts.

Ottawa, ON –October 2, 2019 – Getting to Global, an initiative that connects exporters to global business resources, and FITT, the standards, certification and training body for international trade practitioners, have partnered to bring the acclaimed FITTskills training to the newly launched Export Connect platform. The new space will not only be a catalyst for entrepreneur access to global resources, but also to valuable tools, expert advice, and new business opportunities needed to expand overseas.

Patrick L. Perreault, Co-Founder of Getting to Global, said, “Export Connect is the variable that was missing from the equation. We went from being an educational platform on global strategy to a real toolbox for SMEs to connect them to the experts and resources they need to go global. “Export Connect is literally connecting the dots between government resources, service providers, industry experts and SMEs to facilitate their expansion into new global markets. We’re excited to count FITT as a partner as they bring world-class training content to Export Connect and give exporters access to their network of certified international trade professionals.”

“If businesses don’t have the know-how to go global, they’ll give their profits to someone else, ”

says Caroline Tompkins, President and CEO of FITT. “Regardless of how good the product is, without export capable people, success will be harder, riskier and more expensive than it needs to be. We’re excited to be expanding our support of entrepreneurs alongside key players within Export Connect.”

Getting to Global brings together industry experts, business leaders, and government officials to help your company go global for faster growth. Export Connect is the latest addition to Getting to Global’s set of tools, a game changer for small and medium enterprises, trade and investment promotion organizations, and trade experts alike. And with FITT as a partner, SMEs will have direct access to the most important network of certified international trade professionals.

About FITT
The Forum for International Trade Training (FITT) is the standards, certification and training body dedicated to providing international business training, resources and professional certification to individuals and businesses. Created by business for business, FITT’s international business training solutions are the standard of excellence for global trade professionals around the world.

About Getting to Global
Getting to Global brings together industry experts, business leaders, and government officials to help small and medium enterprises go global for faster growth. We rely on a strong network of partners to aggregate the resources and data SMEs need to enter the global online arena in an unprecedented and simplified way. And we are more than just a website. In addition to creating a profile on Export Connect, entrepreneurs and business owners of all kinds use our Duties and Taxes Calculator to avoid bad surprises when shipping internationally. Or they find our Market Accelerator and discover what markets await them to expand and start growing.

If you have any questions, please contact us at afleury@perimetre.co.

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Many businesses seeking to grow often face the barriers of not having the knowledge or the confidence to succeed.

For small business, entering global markets is a significant undertaking, and requires know-how, and developing or securing that know-how will require an investment of time and money.

“If you’ve been looking at going global you probably already know what you need to do, but crucially, do you or your team know how to do it? In business, if you don’t have the know-how to go global, you’ll give your profits to someone else,” according to Caroline Tompkins, President and CEO of FITT.

So, in practical terms, what’s the value to small business of investing in trade know-how?

Who better to ask than our own Certified International Trade Professionals (CITPs)? We wanted to learn more about their own journeys to global trade, so we asked them how training and the CITP designation helps them to grow their own small businesses.

Channelspark International Inc. – Greg Henderson, CITP

What problem does your business solve, and how?

Channelspark guides and assists Canadian businesses on the benefits and value of expanding into new markets. Channelspark’s research and assessment tools simplify and streamline this process to provide quick and valuable information that helps companies make critical decisions about exporting.

How is your business involved in global trade?

Channelspark is a management consulting company that helps businesses expand into new markets, offering introductory export training, in-depth market research, export plan development and international marketing and partner development services.

While there are services and information available to help Canadian businesses expand into new markets, find funding and participate in trade missions, many small businesses find it difficult to know where to start or to determine whether their product is competitive or even viable for an international market.  

Channelspark helps point businesses in the right direction with help to determine if they are export ready, and provides consulting services focused on market data and sector trends, and strategies for success. With their new service, ExportSpark, businesses can get an assessment of their capabilities and their product, find the best fitting international markets and get a customized roadmap for going forward with international expansion.

Channelspark has worked one-on-one with businesses around the world, and has managed projects with Global Affairs Canada to help international businesses with entering the Canadian market.

How has FITT training/ know-how contributed to the success of your business?

As an international trade consultant, the CITP designation and FITT training was absolutely essential and is the core of what I do on a daily basis. The FITT program doesn’t just teach subjects, it teaches you to create frameworks for developing services or programs that can quickly add value to any export activities done by most businesses. Without those, you could spend months trying to understand how a business works or why their product even fits internationally. And that’s just not profitable.

Why was getting CITP certified an important decision for you/your business?

As a trade consultant, being credible and of value to any business requires more than just sales experience, it requires a deep understanding of international trade, marketing, market entry strategies and more. The FITT CITP designation is one of the most valuable designations to have as it immediately provides this credibility and an understanding that a CITP understands all aspects of “going international”.

 What is one of your secrets of success?

A very large part of international consulting is spent hunched over a desk doing research, learning, and trying to figure out how to tell a company how they will succeed. Getting it right is important, but very hard to do in an ever-changing world.

What advice would you share with other entrepreneurs as they begin their journey?

Becoming an entrepreneur is a great choice for business people looking for independence, flexibility and freedom of operating in their chosen field. But it is easily 10 to 20 times harder than any job I’ve ever done and requires an ability to constantly change and adapt, with little predictability on when you’re going to get paid…. but it is never boring!

The post CITP Small Business Spotlight – Channelspark International Inc. appeared first on Trade Ready.

The export process is an essential step for companies intending to expand their sales abroad, improve their finances and grow. However, mistakes can happen due to a lack of experience and knowledge – issues which can be rectified by those willing to put in the work and plan ahead. By taking these necessary steps, you’ll be able to achieve a successful export process.

1. Know your potential

One of the most important aspects in the export process is analyzing your internal capacity to export to foreign markets. Like any other business, to export, you need extensive preparation and effort ahead of time, and dedication and perseverance to see each step of the process through.

That’s why self-assessment of your production capacity, finances and commercial strategy, among other considerations, will be strictly necessary to make a leap towards an exterior market. This gives you the opportunity to improve problem areas, or supplement your team’s knowledge with further learning so you have all the skills you need in-house.

2. Analyze the market

To understand how to enter into a new market, it is necessary for companies to consider opportunities and threats in that market. Market research is a vital tool for companies to make better decisions, considering economic, political and cultural factors.

Additionally, a thorough investigation can provide information about time and growth of sales at the international level, so you can forecast trends, project targets and build a more detailed plan.

3. Plan your moves

Because you are looking to develop your business, it is important to focus on how exports allow for diversification of risks in the face of unstable home markets and protect you against the effects of macroeconomic problems. However, you must have a clear strategy through prior planning to enter new markets, considering all aspects of selling and the best positioning of the product.

What are your timelines, goals, acceptable risk levels, and potential threats? Does your company need to tailor its products? What work needs to be done to establish a supply chain or a marketing plan for that market? These questions should all be answered well ahead of time.

4. Be ready for market demand

Furthermore, another aspect to consider is whether your business has the capacity to handle the volume of products ordered, and expected to be delivered, according to international market requirements. This may necessitate improving your capacity through more employees, greater production, etc., or scaling back your market entry plan accordingly, among other options.

5. Learn your entry barriers

It is essential that the exporter is informed about the customs regulations in the final market. This could help avoid last minute surprises at the time of importing the merchandise. Usually, the entry barriers of a product are usually of two types: technical or tariff. You must know the regulations, the details of the tariffs, as well as the import procedures of the new market before a single item is exported.

6. Open your mind to negotiate contracts and payment

Before carrying out an operation, the exporter must negotiate the conditions and forms of payment. It could be trough international contracts, which include clear clauses specifying the responsibilities of the parties involved.

Usually, the use of the INCOTERMS are considered at this point, which are standardized terms that are used in the international purchase-sale contracts serving to determine responsibilities. In addition, there are other important documents such as a firm order, an invoice, a bill of lading, letters of credit and other traditional papers.

7. Don’t forget legal practices

The legislation of a foreign country is important to consider in the market entry process because the exporter could encounter several unfamiliar laws and regulations. Companies need to find sufficient information such as international conventions, treaties and international rules. This may help your ability to operate successfully in foreign markets.

On the other hand, exporters may also encounter disputes with client agents or distributors and creditors. It is important to understand your legal rights as an exporter, as well as to have enough information to resolve disputes while you are trying to sell products or services in a foreign market.

8. Immerse yourself in your target market

Finally, cultural and language barriers should not be underestimated. The customs and expectations in international trade can vary greatly from one country to another. For this reason, exporters must have professionals who know the local language, culture and way of doing business.

You must also understand the various elements will influence the negotiation process – for example, the nature of the contract, the economic interests of the parties, including currency exchange rates, the experience of each party, and the persuasive capacity of all parties involved.

Trade offers the greatest opportunities to grow your business

In the current world in which we live, the greatest possibilities for growth are linked to globalization and to the scenarios that help more companies sell more products in more countries around the world.

If you are looking forward to learning more about business growth and sustainability through international trade, you will find more information throughout the Forum for International Trade Training (FITT) website, where you have the opportunity to obtain the skills needed to cross borders with your products and services and have a global reach.

The post Are you looking to export? 8 golden rules for success in a new market appeared first on Trade Ready.

While these countries are smaller markets and may therefore be overlooked by many businesses in their market entry strategies, they have incredibly high rates of trade for their size and could make ideal expansion targets. 

For example, if you know that a country’s trade volume is 150-200% of its GDP, and it is importing large amounts of a particular product, that country may be worth expanding into.

For international trade professionals, large volumes of trade can also mean that these countries have a high number of relevant jobs available in that sector, and could be worth including in your next job search.

Here is a list of the top ten countries that have the most trade in terms of percentage of GDP:

10. Republic of the Congo: 166% trade volume

Not to be confused with its larger neighbor, the Democratic Republic of the Congo, the Republic of the Congo has seized on political stability and oil exports to become a relative heavyweight in the international trade world.

On top of crude and refined petroleum, which comprise the vast majority of the country’s exports, ships, and refined copper also top the list. Top imports into the country include palm oil, iron, cars, and refined petroleum. China, Italy, Australia, and neighboring Gabon are some of the country’s top trade destinations.

9. Belgium: 167% trade volume

As the home of the European Union headquarters, Belgium is a very important country for international trade. Its high levels of industrialization and excellent marine, rail and road transportation infrastructure are also trading advantages.

The city of Antwerp is considered to be the diamond capital of the world. It is home to 1,500 diamond companies and the world’s two largest diamond banks. As a result, raw diamonds are one of the main imports from this region and finished diamonds are one of the top exports.

Other important exports from Belgium include chemicals, metals, metal products, and foodstuffs. The main imports include foodstuffs, chemicals, machinery, and transportation equipment.

8. Equatorial Guinea: 178% trade volume

Admittedly, Equatorial Guinea faces many serious problems, including an authoritarian government, mass poverty, high levels of inequality, and one of the world’s worst human rights records. However, the country has capitalized on oil to elevate its role in international trade. China, the UK, Brazil, and Spain are currently its top trade partners.

Petroleum gas, acyclic alcohols, crude petroleum, planes, helicopters, and wood are all imports that help to give Equatorial Guinea a high trade volume. Beer, excavation machinery, special purpose ships, and refined petroleum exports also contribute to the nation’s high levels of trade.

7. Vietnam: 179% trade volume

With an impressive economic growth rate, inclusion in 2007 as a member of the WTO, new trade liberalization and agreements, and an expanding manufacturing base, Vietnam is a rising star in the global trade world.

Vietnam’s main exports include crude oil, textiles, fishery products, footwear, and electronics, which are sent to countries all over the world. Some countries that Vietnam exports to include the United States, Japan and China, as well as many European nations. The country also imports large quantities of refined petroleum, steel, machinery, and cloth.

6. Slovak Republic: 185% trade volume

As one of the fastest growing economies in the EU and the world’s largest car producer per capita, the Slovak Republic (often referred to as Slovakia) exports high volumes of cars and vehicle parts, as well as refined petroleum, and video displays.

The nation also imports high volumes of broadcasting equipment, vehicle parts, and crude petroleum. Some of the Slovak Republic’s top trade partners are Germany, Russia, China, and France.

5. Maldives: 201% trade volume

The Maldives is a smaller country, with a population of just under 400,000 people spread across nearly 1,200 islands in the Indian Ocean. As a nation of islands, however, its fishery-dominated economy has proven advantageous to exporting. Its main exports are all related to the fishery industry and include frozen fish, fresh fish, and processed fish.

The Maldives imports products such as planes, helicopters, refined petroleum, petroleum gas, and concentrated milk. Some of the country’s top trade partners include Thailand, France, the United States, and nearby India.

4. Ireland: 222% trade volume

Ireland has a number of in-demand exports that help the country bring in billions every year. Among the most prominent of these are medical equipment, organic chemicals, meat, aircraft, cereal preparations, pharmaceuticals, and perfumes. The imports that help contribute to Ireland’s impressive trade volume include vehicles, oil, machinery, plastics, and paper.

As an EU member, most of its exports – 60.2% – go to European nations. However, Ireland also does a significant amount of trade with North America and Asia.

3. Singapore: 326% trade volume

Singapore has placed first in the World Bank’s report of the easiest countries in the world to do business every year since they began the rankings in 2006. This impressive evaluation, as well as its small size and lengthy history as a major trade port, cement Singapore’s high place on this list.

The country also has one of the highest GDPs per capita worldwide, one of the best corruption ratings in the world according to the Corruption Perception Index, and is home to thousands of foreign companies with one of the world’s highest levels of foreign investment.

In 2014, Singapore’s combined imports and exports totaled $624 billion and included refined petroleum, oxygen amino compounds, ethylene polymers, and integrated circuits. Refined and crude petroleum, and integrated circuits made up the majority of the country’s imports.

Singapore’s top trade partners are China, Malaysia, the United States, and Hong Kong. Singapore’s export economy is the 20th largest in the world.

2. Luxembourg: 391% trade volume

Luxembourg, known as the “green heart of Europe,” has become a leading global center for banking and financing. It also has a surprisingly large manufacturing sector, and exports many different goods, including machinery, steel products, foodstuff, and diamonds. Its imports consist largely of fuels, ores, metals, foodstuff, and various consumer goods.

Luxembourg’s top trade partners are Germany, France, Belgium, and the Netherlands. Luxembourg has a lot of metals and ores, and its industrial production was once dominated by steel. Those products are expected to become increasingly important exports for the country in the future.

1. Hong Kong: 400% trade volume

Hong Kong shares many of the same qualities as several others on this list: small size, high GDP per capita, a leading global financial center, and business-friendly laws.

With little agricultural land and few natural resources, Hong Kong chose to specialize its manufacturing and exports in technology and relies heavily on imports for most goods. Hong Kong’s top exports are computers, telephones, office machine parts, integrated circuits, and other electronic equipment. Its top imports are crude petroleum, gold, cars, and iron ore.

Hong Kong’s top trade partner is China, but several other countries across Asia are also prominent in Hong Kong’s trade strategy, such as Japan, South Korea, Singapore and Vietnam.

The post 10 small countries who are major players in the international trade world appeared first on Trade Ready.

Even Porsche had a tough time importing cars into the country. Starbucks ran out of imported plastic cups and had to source some locally, creating a major PR crisis for the company.

I personally remember a client’s nursery goods samples being stuck at customs for nine months (the average pregnancy length, how ironic) because of a host of inexplicable issues.

Protectionism hasn’t been the worst of all evils, though. The country now faces high inflation, problems with debt restructuring (you probably remember the holdout funds negotiations set to resume February 1, 2016) devaluation, fiscal mismanagement and more.

Misleading statistics (to say the least) haven’t helped, and neither has the reticence of Mrs. Fernández and her staff to cooperate with the incoming team.

On top of that, Argentina lost the World Cup final to Germany in 2014. Clearly, difficult issues to recover from.

A new dawn, a new day

After an undoubtedly tough few years, are things looking slightly brighter now? Late last year, Argentinian voters chose Mauricio Macri as their new president, a much more pro-business character than its two predecessors.

So what has Macri done so far to encourage you to think about doing business with Argentina again? Just three examples will provide a more positive outlook.

First, Macri has scrapped Argentina’s farm exports, something that had caused havoc in the country during the Kirchner area. That’s had a positive worldwide repercussion, for what it means in itself and as a signal.

He has also opened up to a debt deal with the holdout creditors, another hugely positive sign.

Finally, the President has lifted currency controls, a big burden for any international trade and investment.

What also matters is that there is more openness in general, and a much more pro-business environment.

As The New Yorker wisely sums up:

“The new finance minister is a former executive at JPMorgan Chase; the minister of foreign relations is a former C.E.O. of Telecom Argentina; the minister of energy is a former president of Shell Argentina; the minister of production is the former C.E.O. of a pension fund; the head of Aerolíneas Argentinas, the national carrier, is a former regional director for General Motors; and the transportation minister used to run his family’s car dealership.”

Time to re-assess your Argentinian options

All looking good. So… is it finally time to export to Argentina (again)?

I’d say there’s no harm in undertaking some market research and gauging opportunities right now. It might also be the right time to start developing a network of contacts in the country.

Some major corporations are already doing so. Coca Cola, for example, just signed a deal to invest one billion dollars in its bottling and distribution operations in Argentina over the next four years.

After all, it’s South America’s second biggest economy, after Brazil (Colombians can argue they should come second, mind you) with some very strong sectors like agri-tech. If the country is going to go back to the growth part of its economic cycle, you want to be part of it from the start.

But the endemic problems of Argentina won’t be solved overnight. As encouraging as Macri’s administration’s first moves have been, things will take time. You will still find a country facing inflation, debt and a host of other problems.

However, it’s up to you to analyse whether the market itself is strategically viable for you or not.

What really matters, in my opinion, is that you’re no longer battling against a government that seemed to want to stop trade at all costs. You’re now facing a much more open, globally-minded Argentina. The right time to export to South America’s second largest country might be closer than you think.

Are you ready for it?

Are you considering Argentina as a potential export market? What are some of the challenges you would still have to overcome in this region?

The post Is it – finally – the right time to export to Argentina? appeared first on Trade Ready.

As everyone focuses on China, which is facing daunting challenges in its excess industrial capacity, stock market crash, and efforts to shift from an export-driven economy to a consumer-based model, some developments in the region have remained largely unnoticed.

Yet, one of the newest stories on the continent is Vietnam, which is well positioned to become the region’s manufacturing and trade hub across a range of sectors. Here’s what you need to know.

Asia’s new manufacturing hub

Comparative advantages are not set in stone. The unprecedented rise in China’s labour costs, which have more than doubled since 2003, have opened an opportunity for more cost-competitive countries like Vietnam to attract investments.

According to fDi benchmark, a data service owned by the Financial Times, total operating costs for an automotive plant are now 40% lower in Vietnam than in China. In the case of manufacturing plants for biotech-pharmaceutical products or medical devices, costs can be as much as 50% lower.

As a result, investments into Vietnam have surged to US$ 8-9 billion per year over the last 5 years, up from virtually nothing two decades ago.

The number of greenfield investment projects doubled in 2014 to almost $24 billion, making it the second most popular investment destination in the Asia Pacific region, behind only China, and ahead of India, Indonesia, and Malaysia, not to mention Bangladesh and Cambodia.

For many investors, Vietnam is seen as a hedging replacement for China, particularly in the manufacturing sector, turning the country into the manufacturing hub of the region.

Big multinationals like Nike, Procter & Gamble and Unilever are expanding their activities there. While 40% of Nike shoes were produced in China in 2001, compared to 13% in Vietnam, by 2013 only 30% were still made in the Middle Kingdom, while 42% were instead produced in Vietnam.

An improved business environment

Many commentators cited cheap labour costs as playing a large role in Nike’s decision to move a good part of its production to Vietnam as its next business frontier.

This is turning a blind eye to other key factors that make Vietnam an attractive place: a young population of some 90 million people; Vietnam’s geographic position near global supply chains; a growing consumer market boosted by a solid economic growth of 5-6 % per year over the past 5 years; a relatively stable political and economic scene; and an improving business climate.

In 2015, for the first time, Vietnam ranked ahead of China in the World Bank’s Ease of Doing Business Index (in 78th position, 12 ranks ahead of China), with a significant head start on countries like the Philippines, Indonesia, and India.

With discretion and perseverance, the government is passing reforms to improve its business environment. A new investment law, effective July 1, for example, simplifies foreign investment procedures, relaxes licensing requirements, and ends the differentiation between domestic and foreign investors.

Opening the country for business

Vietnam’s government is also pursuing an active trade policy. In May, it signed two major free trade agreements, with Korea and with the Russian-led Eurasian Economic Union (EEU).

On August 4, 2015, it reached an agreement in principle for a free trade agreement with the European Union (EU), after two and a half years of intense negotiations. This landmark agreement will remove practically all tariffs on goods traded between the two economies, a first.

Never before had the EU negotiated a symmetrical liberalization of trade with a developing country.

The agreement will open Vietnam’s trade in various services sectors, including financial services, telecommunications, transport, and postal and courier services.

It will also lift or ease limitations on the manufacturing of goods and provide for government procurement rules largely in line with the Government Procurement Agreement of the WTO, “achieving a degree of transparency comparable to the other EU free trade agreements with developed countries and more advanced developing countries” as the EU Commission noted in its press release.

Few countries can pride themselves on having reached three major trade deals within just a few months.

Last but not least, Vietnam is one of the 12 countries in Asia and the Americas that recently reached an ambitious agreement to liberalize trans-pacific trade in the TPP negotiations. While unprecedented in its geographical scope, the Trans Pacific Partnership excludes some of Vietnam’s key competitors on the regional scene, in particular China and Indonesia.

One of the biggest winners of the TPP is likely to be Vietnam. A study by the Peterson Institute for International Economics estimates that Vietnam’s GDP could rise by an additional 10% by 2025, the largest percentage gain among TPP participants.

These various agreements will, no doubt, further contribute to improving Vietnam’s business environment and will reinforce its position as a manufacturing and trade hub in Asia.

Asia’s trade growth champion

In fact, a detailed look at trade figures shows that Vietnam has been Asia’s trade growth champion for some time already.

Merchandise exports have increased by nearly 20% per year over the period 2005-2013, the fastest growth rate in the region, well ahead of Bangladesh, India, Indonesia, the Philippines, and even China, whose exports of goods grew by “only” 14% per year on average.

While exports of services have grown at a slightly slower rate than others in the region, Vietnam still ranked first in 2012 in terms of growth of exports of goods and services combined.

No doubt, an economic rebalancing is at play in Asia. Discreetly, Vietnam is positioning itself as a key manufacturing and trade hub in the region. Yet, investing in and trading with Vietnam is not an easy go and requires careful analysis and planning.

The country may be ahead of China and India in terms of Ease of Doing Business, but it still lags far behind a country like Malaysia. Further reforms are needed to consolidate its position and transform its current cost advantage into one built on skills and technology.

Does Vietnam factor into your business’s international expansion plans? What would be the pros and cons of doing so?

The post Could Vietnam become both the world’s next factory and business frontier? appeared first on Trade Ready.

Who are the “multilatinas”?

They are as varied as they come. A good place to start finding out about these companies is the America Economia Ranking. For 2014, according to this ranking, the top 10 multilatinas are:

• CEMEX (Mexico, cement)
• LATAM (Chile, transport)
• Brightstar (Bolivia/US, telecoms)
• JBS/FRIBOI (Brazil, food)
• CSAV (Chile, marine)
• Tenaris (Argentina, metallurgy)
• Ternium (Argentina, metallurgy)
• Avianca/TACA (Colombia, transport)
• Mexichem (Mexico, petrochem)
• Ajegroup (Peru, drinks)

Cemex had sales of USD 15 billion in 2013, but the rankings are based on a variety of factors, so companies with even higher sales can be found farther down the list. For example, America Movil (no. 14 in the ranking) had sales of USD 60 billion. Not small at all.

Why should they matter to you?

1. Because these companies could be your clients.

Research multilatinas carefully. Find out as much as you can about them. They could be your gateway to real growth in Latin America.

Remember that any of these companies will need everything from staples (we staple and stamp a lot in Latin America, given our huge bureaucracy levels) and washing up liquid through to cables, cars and whole buildings. Is it worth designing a mini marketing plan for some of them?

If you are selling indirectly, for example, through a distributor, do they have access to these companies? Drop the names and they’ll know you are serious about the market.

2. Because these companies are global.

Some could be closer to home than you think. Can you supply them in your home market and then aim for a more global win? Could you supply them in one export market and then accompany them into a new market? Could a regional buyer be the key to more than one market?

3. Because they will have a “multinational” culture.

Although they have a distinct Latin flavour, work practices are likely to be aligned to what’s more familiar to you globally. The cultural gap will be slightly smaller.

And, critically, how to you get in there?

The million dollar question.

It’s not easy. It will take time and contacts. And a good dose of courage. Research is absolutely key to get under their skin, understand how they think and who your keyholder is.

Also, what I find lets exporters down many a time is readiness. You wouldn’t go to Coca Cola unprepared. You shouldn’t either with multilatinas.

You don’t get two shots. Have EVERYTHING ready and make sure you can respond and fulfill orders and requisites.

They are big companies, and they will be slow and full of internal and external paperwork. Do you really have the resources?

If they place an order that is 10 times the size you are used to, can you handle it?

My other key piece of advice is to be really aware of where the balance of power lies when dealing with multilatinas. Again and again I see European and North American exporters coming to multilatinas with the wrong attitude, sometimes borderline rude/pedantic. You need them much more than they need you.

Be humble – these are big companies, and very powerful in their own turf and beyond, and they know it.

Treat them with huge respect and show them that you really want their business.

Finally, when dealing with multilatinas, remember that as “multi” as they are, they are still “latinas”, particularly if dealing with HQ. Personal contacts help and cultural awareness is a must. They might not reply to emails or be extremely punctual. But they are way too big to ignore.

In what ways could multilatinas play a part in your Latin American market entry strategy?

The post Could a multilatina be your big gateway client to doing business in Latin America? appeared first on Trade Ready.

Eric Agyemang, CITP|FIBP, is a Small Business Account Manager at Export Development Canada (EDC), where he manages an active portfolio of exporting companies in Southwestern Ontario, helping them find ways to access financing and safeguard their foreign sales.

Helping people through international projects is a life-long pastime

International work has been part of Eric’s life since he was very young. He grew up in Ghana, first setting foot in Canada in Prince Edward Island back in 2004.

He was there as part of a mission with a program called Canada World Youth, where he worked with local youth, encouraging them to live more active lifestyles. He also started his own organization to recruit international volunteers for Ghanaian schools and clinics.

At FITT, we have been watching Eric’s international trade career first take off and then flourish. Eric had an admirable student career, achieving multiple awards and accolades, including the School of Business Award at Algonquin College, and was named one of Canada’s Top 25 International Business Students in 2013.

We had the honour to present him with the FITT International Business Plan award in 2012, and the EDC-FITT Internship in 2014, where he quickly impressed his colleagues and became a member of the staff.

Finding a place to put his skills to use at EDC

“Though my career in international trade started back in 2005, when I co-founded an international volunteer placement organization in Ghana, it was the EDC-FITT internship that really honed my interest in international business,” Eric says of the experience.

He was taken with the variety in tasks, clients and sectors he would get to work with on a daily basis, as well as the chance to make a real difference in the international trade industry.

Working with such a diverse group of companies showed me the vast plethora of opportunities out there for Canadian entrepreneurs wanting to expand their global business footprint.

“The internship also afforded me the unique chance to learn and understand some of the challenges faced by many small-and-medium-sized businesses, from Vancouver to St. John’s. And the support provided by EDC can be truly a game-changer for many of these companies.”

“All these, I believe, have greatly set me up for success for both my current role and beyond.”

Every day, a new adventure

Eric enjoys and excels in his role at EDC, where he manages a highly diversified portfolio of companies across many industries and dealing with different countries, which he says means there is never a “typical” day.

Every day is different, customized to the client and their current needs. Every transaction is particularly unique, which has been a very exciting part of my job.

“In essence, as part of the greater Southwestern Ontario team of Commercial Market and Small Business Account Managers, my role is really to serve as a trusted partner in finding creative ways to help Canadian exporters.”

Whether it’s through dealing with the businesses directly, or their banks, Eric connects them with EDC’s suite of solutions to ultimately help foster and facilitate trade.

After his success in the FITT program and his internship with EDC, Eric decided it was a natural next step to apply for the CITP®|FIBP® designation to cement his position among the global trade elite.

Clearing the last official hurdle to join the international trade elite

“Without a doubt, the FITT program really gave me the right tools and a solid platform to give my career in international business a boost. The courses were focused and practical and allowed me to hit the ground running once I was hired.”

I chose to apply for the CITP®|FIBP® designation because, frankly, there is really no other accreditation as widely respected and more broadly recognized by business professionals around the world.

“Being a CITP®|FIBP® genuinely enhances my credibility with business leaders and demonstrates my dedication to the profession. After years of hard-work, I am absolutely thrilled to earn my designation. Joining the membership of Canada’s growing elite network of international trade professionals has been a tremendous honour.”

Eric recently had the opportunity to be part of an interesting project promoting the importance of ethics, sustainability and social responsibility for young people looking to start their professional journeys.

“Earlier this year I got to be a part of EDC’s 2014 CSR Report project; speaking on the importance of corporate social responsibility for young professionals, especially when it comes to choosing where to start a career.”

If you check out the video he participated in here, you will see the passion and enthusiasm Eric has for EDC, and the opportunities that exist for young people to engage in sustainable, community building positions.

The post Eric Agyemang, CITP|FIBP – Small Business Account Manager appeared first on Trade Ready.

Ljubo Stankovic, CITP|FIBP, has been working in international trade for close to thirty years in Serbia, Spain, Canada and the United States.

After many years of dedication and achievement within the company, Ljubo has risen to become the Director, International Division of Tootsie Roll Industries, one of the world’s leading candy and confectionary companies.

If you live outside of the United States and have ever had a Tootsie Roll, Tootsie Pop, Junior Mint or Dubble Bubble gum, Ljubo is one of the people who worked to make that happen.

 Starting in the country formerly known as Yugoslavia

As he was finishing the final year of his Bachelor’s of Business Economics degree from the University of Belgrade (now the capital of Serbia), Ljubo received a scholarship from Yugometal, a large international commodity trading company in Yugoslavia.

When he completed his degree one year later, in 1987, Ljubo started his career with them as a Junior International Trader.

After four years there, he moved to Madrid to work for Metallia, Yugometal’s Spanish branch office, with a promotion to International Trader. It also gave him the chance to add a new language to his skillset.

“When I was there, I attended and finished a Spanish language course at Eurocentro-Madrid, a language school for foreign executives. Now I’m fluent in Serbo-Croatian, English and Spanish, and also have a basic knowledge of Russian.”

That same year, in 1992, Ljubo finished his Master’s degree in Monetary Economy and International Banking.

The wonderful world of candy

In 1992 Ljubo moved to Toronto with his family and in 1993 started a new position as an Export Sales Manager with Concord Confections Inc. (largest gumball manufacturer in Canada & USA), and specialized in sales to the U.S. and other international markets.

He was promoted to Director of Export in 1995, and continued to help sell the company’s goods around the world. One of the most important ways he did so was at major trade shows, like SIAL-Paris, ISM-Cologne and Anuga-Cologne.

His position also opened up some interesting speaking opportunities, like being invited by Agri-Food Canada and OMAFRA to present the Marketing Strategy of Exporting Processed Food to China during the China Seminar in Toronto in 1996.

In 1998, Concord bought Fleer Confections, and Ljubo was promoted again to Vice President, International Sales. Those two developments led to one of his favorite career projects.

When we acquired Fleer, we also got Dubble Bubble bubble gum. I’d already helped Concord establish a presence in over 60 countries worldwide, so I got to reintroduce Dubble Bubble to many different world markets.

“To re-introduce Dubble Bubble to some of the markets where this brand lost its presence I have traveled extensively.”

“In one of my trips, I visited 6 different countries in less than 12 days. On another trip, this time to Hong Kong, I visited and presented our portfolio of bubble gum items to over 10 potential customers in 2 days. I was very happy every time I boarded the plane to finally travel home from these trips.”

Transitioning to Tootsie Roll

When Concord was bought out by Tootsie Roll in 2004, the vast majority of Concord’s senior management didn’t survive the transition.

Ljubo, however, was not only the sole member of Concord’s senior management team to survive the transition, but also given an expanded product portfolio and greater responsibility under the new title Assistant Director, International.

As part of the role, Ljubo dealt with clients from a wide variety of cultures all over the world, building a huge network of contacts and racking up a lot of travel.

I’ve travelled extensively to almost every part of the world – the USA, Europe, South America, the Far East, Israel, the Middle East and Australia.

During the times he was home in Toronto, however, Ljubo was able to keep himself quite busy.

First, in 2010, he received his elite CITP®|FIBP® designation, as further proof of his many years of commitment, experience and excellence in international trade.

“I have always felt that our profession, international sales, was sometimes perceived as if anyone who is in trade or business can participate in international sales. But, in reality, doing business in the international arena is a very specific trade and requires a special set of skills and a genuine affinity for dealing with various cultures and countries.”

“It is a very difficult and complex job that requires many sacrifices (long trips overseas and many hours spent in airplanes flying over vast distances) and a profound understanding that each country and market requires a slightly different approach and strategy to penetrate and establish business.”

Being a Certified International Trade Professional provides me with a higher level of recognition for my business skills as a specialist in international trade.

“It also gives me a sense of participation in an elite group of professionals who are dedicated to international business and who possess what it takes to survive and strive in global markets.”

He then joined the Program Advisory Committee (PAC) of Centennial College, one of FITT’s educational partners, and helped their School of Business start a new course, World Geopolitical Systems. The topic is a specialty for Ljubo, who wrote his Master’s on small business investment in conditions of geopolitical conflict and risk.

Staying on top of his game

In his free time, Ljubo served as a Certified Tennis Instructor for the Ontario Tennis Association, and coached his daughter, who was ranked 17th in Ontario’s U12 girls category.

Finally, he participated in the Ministry of Education’s International Business Cluster Focus Group for the updating of Vocational Standards for International Business Diploma Programs in Ontario.

In 2013, Ljubo was relocated to Tootsie Roll’s headquarters in Chicago, and in January 2015, he was given his latest promotion to the title of Director, International Division.

His job continues to keep him busy with international sales and extensive travel, but after nearly thirty years in the industry, Ljubo enjoys being at the top of his game.

The post Ljubo Stankovic, CITP|FIBP – Director, International Division appeared first on Trade Ready.

Tariffs are taxes that countries impose on imported products for one of two major purposes: protectionism or social change.

Most countries participate in the World Trade Organization. This worldwide independent body acts as mediator between countries to resolve trade disputes, often over trade rules for imports, and is dedicated to the reduction and removal of all tariffs between member nations. In spite of these efforts, there is still a long way to go.

Tariffs in global trade 101

The basic truth in international business is that countries have competitive advantages over other countries. These advantages can be in access to raw materials, cheap labor, and technological expertise.

As a result of these advantages, the cost of products produced in those countries can often be significantly lower.

Governments then use tariffs to ‘level the playing field,’ so that products produced internally can compete with lower cost imports.

Governments also use tariffs as leverage to encourage social change. Most countries are not at all receptive to other governments telling them what to do.

On the other hand, they are usually very interested in improving their economies. They can therefore be persuaded to implement changes in human rights practices, corruption, pollution, etc., in exchange for reduced tariffs and greater access to markets for their exports.

Because countries use tariffs as a tool, they can change as frequently as government priorities do. For the importer, this requires constant vigilance. Policy changes can profoundly impact profitability and change the competitive balance in the marketplace.

Get your calculators ready

Navigating the complex tariff schedules can be a daunting task. If you fail to identify the product correctly, you can face penalties and fines, perhaps even loss of import privileges.

Inaccurately identifying the country of origin can have serious consequences.

Even the tiniest discrepancies in the description of the product can cause huge differences in the duties charged.

Let’s say you are an Italian shoe manufacturer and would like to import running shoes to the United States. In this case, the tariff rate is based upon the value of the shoes.

If our shoes are worth more than $6.50 but not over $12.00, then we can use the harmonized tariff schedule and look up code 6402.91.8005 – “Tennis shoes, basketball shoes, gym shoes, training shoes and the like”. There is no special tariff rate for Italy or the European Union, so we know we will be charged the default rate of $0.90 / pair + 20% of the value of the shoes.

If those same shoes came from Colombia, the rate would be $0.54 / pair + 12% of the value of the shoes. And if they were made in Morocco they can be imported duty-free.

To further complicate matters, if the value of the shoes exceed $12.00 they must be imported on code 6402.91.9005 and the tariffs are slightly lower.

This creates the following bizarre scenario:

If the shoes are valued at $12.00, the tariff per pair is $3.30 bringing the cost per pair to $15.30. If the manufacturer should implement a 2% price increase to $12.24, the tariff per pair is only $2.45, so the cost per pair becomes $14.69!

Get to know the rules even better than U.S. Customs

We advise our clients to get a binding opinion from the U.S. Customs and Border Protection agency before importing a product into the U.S. This opinion will provide some clarity in terms of tariffs, and eliminate surprises at the border that could adversely affect the bottom line.

To our amazement, we found that the changing rules sometimes confuse the very agency tasked with enforcing them.

One of our clients is an importer of tahini, a sesame seed based product. They identified a particular strain of the seed, grown in Ethiopia, which has the taste they sought.

They contracted with a factory in Israel to manufacture the product and began importing tahini duty-free under the free trade agreement between Israel and the United States. This arrangement allowed them to contain their costs, while introducing their product to the U.S. market.

In July of 2014, we began negotiations with a factory in Ethiopia to manufacture the product closer to the source, thus eliminating the cost of transporting the seeds to Israel.

When we sought guidance from Customs and Border Protection, our first response was that the import, classified under 2008.19.9090, would not qualify for any trade preference, and as such would be charged the default tariff of 17.9% (much too high to make it economically feasible).

However, the rules on this were confusing at best.

In the past, importing tahini from Ethiopia could be done duty-free, since it was covered under the General System of Preferences (GSP). Unfortunately, the GSP was allowed to expire on July 31, 2013.

Products from Ethiopia also qualify for special duty-free treatment under the African Growth and Opportunity Act (AGOA). However, tahini was not among the products that were included in AGOA. Careful research uncovered an obscure paragraph in the rules which stated:

“Imports of GSP-eligible imports for beneficiary countries of the African Growth and Opportunity Act (AGOA) will continue to be eligible for duty-free entry, notwithstanding the lapse in GSP authorization, pursuant to the provisions in the statute governing the AGOA program”

We presented this citation to the agency and received a binding opinion that no tariff would be charged.

The moral of the story is that careful research and diligence is the only way to guarantee that your imports will be treated fairly and the proper tariffs applied.

What products could your business potentially reduce tariffs on with some more research? Do you have any stories to share on the topic of tariff rules?

The post What you need to know about tariff rules to avoid getting overcharged for your imports appeared first on Trade Ready.