The World Is Open For Business Yours An

The World Is Open For Business. Yours. An Overview of the U. S. Commercial Service

Why Should You Export? Opportu nity 95% of the world’s consumers are outside of the U. S. Diversifi cation Exporting helps to diversify your client base and take advantage of regional growth Competit ion If you are not exporting, it’s highly likely your competitors are selling abroad or will be soon Business Facilitati on Free trade agreements, the Internet, improved transportation, and Government assistance

Economic Impacts of Exporting • • Exports help diversify the U. S. economy • Trade generates $9, 000 more in purchasing power for the average American family • Companies that export are • Jobs related to exports pay 15% more U. S. manufactured exports support 6, 000 American jobs 8. 5% less likely to go out of business

Market Diversification • • Extend product life cycles • Ability to maintain production year-round Counter unstable economic markets o Seasonal differences o Consistent sales

Exporters Are Small Business 97% of U. S. exporters are SMEs with < 500 employees 75% of exporters have < 20 employees 7 in 10 new U. S. jobs are created by small businesses

Exports & Hawaii

Hawaii’s Top Exports Tourism Services Cosmetics / Skin Care Education & Training Environmental Technologies Agriculture & Processed Foods

Hawaii’s Top Exports Hawaii Exports Based on Origin of Movement HTS Description 22 18 9 76 12 20 10 42 95 33 93 30 91 92 Beverages Cocoa Spices/Coffee And Tea Aluminum Misc Grain/Seed/Fruit Preserved Food Cereals Leathr Art; Saddlry; Bags Toys And Sports Equipmt Perfumery/Cosmetic/Etc Arms And Ammunition Pharmaceutical Products Clocks And Watches Musical Instruments US Dollars % Share %Δ 08/07 2008 2007 2008/2007 42, 204, 853 15, 944, 232 7, 304, 677 7, 361, 090 3, 805, 825 4, 553, 234 1, 486, 206 2, 862, 885 2, 413, 336 2, 720, 209 5, 645, 967 1, 852, 556 1, 010, 997 2, 648, 193 37, 569, 727 16, 599, 114 7, 018, 267 6, 900, 668 5, 133, 636 5, 068, 279 3, 281, 321 2, 978, 381 2, 872, 111 2, 654, 592 1, 850, 516 1, 761, 063 1, 681, 710 1, 633, 804 7. 54 2. 85 1. 31 0. 68 0. 81 0. 27 0. 51 0. 43 0. 49 1. 01 0. 33 0. 18 0. 47 3. 9 1. 72 0. 73 0. 72 0. 53 0. 34 0. 31 0. 3 0. 28 0. 19 0. 18 0. 17 -10. 98 4. 11 -3. 92 -6. 25 34. 89 11. 31 120. 79 4. 03 19. 01 -2. 41 -67. 22 -4. 94 66. 34 -38. 3

Hawaii Export: Coffee Who is buying? Top Global Importers Commodity: 0901, Coffee Husks & Skins, Coffee Substitutes Rank Reporting Country United States Dollars 2006 Reporting Total 2007 14, 297, 492, 235 17, 053, 983, 357 2, 346, 555, 380 2, 780, 324, 135 1 Germany 2 France 922, 715, 741 1, 135, 345, 616 3 Italy 871, 668, 372 1, 091, 582, 381 4 Japan 990, 582, 099 1, 007, 536, 566 5 Belgium 576, 881, 197 616, 942, 661 6 Canada 633, 235, 711 681, 828, 070 7 Spain 485, 158, 540 615, 529, 732 8 United Kingdom 420, 201, 477 481, 947, 242 9 Switzerland 252, 695, 531 326, 401, 485 10 Austria 267, 985, 342 386, 423, 340

Hawaii Export: Coffee Where is U. S. coffee going? Top U. S. exports Commodity: 0901, Coffee Husks & Skins, Coffee Substitutes US Dollar % Change Partner Ranking Country 2007 2008/2007 World 544, 540, 906 617, 324, 345 13. 37 1 Canada 402, 913, 519 455, 420, 320 13. 03 2 Japan 44, 294, 196 55, 704, 640 25. 76 3 Russia 233, 570 23, 024, 121 9757. 48 4 Singapore 11, 451, 807 13, 562, 164 18. 43 5 China 10, 656, 153 13, 014, 006 22. 13 6 Germany 35, 747, 261 12, 714, 003 -64. 43 7 South Korea 5, 923, 339 9, 627, 450 62. 53 8 Mexico 3, 355, 982 5, 678, 248 69. 2 9 Taiwan 1, 996, 288 3, 645, 264 82. 6 10 Bermuda 1, 581, 979 1, 694, 163 7. 09

Hawaii Export: Coffee Where is Hawaii coffee going? Top HI exports Commodity: 0901, Coffee Husks & Skins, Coffee Substitutes Rank US Dollar Country World 2007 % Change 2008/2007 7, 117, 465 6, 966, 482 -2. 12 1 Japan 5, 530, 968 5, 050, 100 -8. 69 2 Sweden 1, 212, 584 1, 244, 283 2. 61 3 Canada 91, 023 317, 836 249. 18 4 Germany 204, 835 249, 702 21. 9 5 South Korea 28, 838 49, 679 72. 27 6 United Kingdom 0 18, 000 0 7 Taiwan 32, 901 10, 169 -69. 09 8 Australia 12, 566 10, 112 -19. 53 9 Finland 0 9, 277 0 10 France 0 4, 800 0

Hawaii’s Best Export Markets Japan China India Australia South Korea Malaysia Hong Kong

Leveraging Free Trade Agreements

Free Trade Agreements • FTAs help open foreign markets o Reduced trade barriers (tariffs, quotas, etc. ) o Strengthen legal protections • Promote fair competition • Address trade issues • Bring costs down for U. S. consumers

Free Trade Agreements Topics of FTA Negotiations • Opening Sectors to Competition • Improving IPR Protections • Enhancing Labor Rights • Dispute Settlement • Environmental Standards • Government Procurement • Enhancing Investment Rules • Improving Customs Facilitation

Free Trade Agreements

Free Trade Agreements ISRAEL JORDAN

Free Trade Agreements Country NAFTA Canada Mexico CAFTA-DR Costa Rica 2007 MMUSD 332, 499 213, 118 119, 381 21, 274 4, 224 2008 MMUSD 353, 931 222, 424 131, 507 23, 922 5, 047 Percent Change 6. 45% 4. 40% 10. 20% 12. 45% 19. 50% Dominican Rep Guatemala Honduras Nicaragua El Salvador 5, 793 3, 872 4, 327 846 2, 209 6, 293 4, 493 4, 699 1, 030 2, 357 8. 60% 16. 00% 8. 60% 21. 70% 6. 70% Australia 17, 916 20, 948 16. 90% Bahrain 565 779 37. 80% Chile 7, 610 11, 366 49. 40% Israel 9, 940 10, 238 3. 00% Jordan 831 904 8. 70% Morocco 1, 333 1, 506 12. 90% Oman 1, 034 1, 380 33. 40% Peru 3, 764 5, 686 51. 10% Singapore Total 23, 576 420, 348 25, 655 456, 319 8. 80% 8. 60%

Free Trade Agreements U. S - Korea FTA, Pending • Model for new Asia FTAs • 95% of U. S. consumer & industrial products will enter duty-free • 67% of agricultural exports will be immediately duty-free • Remaining tariffs eliminated <10 years • Hawaii: agricultural / food products, tourism

Going Global Connecting with International Markets

Are You Export Ready? • Domestic Success? • Production Capacity? • Financial Resources? • Management Commitment? • International Plan with Goals? • Know-how? (shipping & methods of payment)

Common Export Mistakes • Lack of Export Business Plan • Low commitment to exporting • Neglecting export customers for local customers • Reliance on inadequate partnerships • Failure to modify products & methods to accommodate foreign regulations and preferences

Determine Product Potential • Examine Domestic Market Success • Assess Unique or Important Product Features • International Market Research • Where are International Hits Coming from on your Website? Target markets? • Where are Your Competitors Selling?

Develop An Export Strategy Focus Your Efforts! • Be PRO-ACTIVE & REALISTIC about your ability to expand • Define your resource limitations (money, personnel, and time) • Identify a few target markets • Evaluate target markets, customers, distribution channels • Evaluate future profits & opportunities to expand business • Develop an entry strategy for each market

Basic Guide to Exporting • How to identify the best markets • Financing export transactions • Best methods to handle orders and shipments • Case studies of successes • Sources of free or low-cost export counseling • $19. 95 online @ www. export. gov

An Overview of the U. S. Commercial Service How the U. S. Government Can Help

U. S. Commercial Service Creating Prosperity Through Global Trade • A global network in more than 80 countries of the best trade professionals in the world • Our global presence and international marketing expertise helps U. S. companies compete & win in global markets • Our Goal - promote economic prosperity, enhance job creation, and protect U. S. commercial interests abroad

Our Services Four Ways to Grow Your International Sales Market Research Trade Events International Partners Consulting & Advocacy

Our Services: Market Research Target the Best Markets with Our World Class Research • Market Research Library (FREE) – over 100, 000 country and industry-specific market reports, web sites, events, and trade directory listings • Country Commercial Guides (FREE) – annual U. S. Embassy reports on the business, economic, and political environment as it affects U. S. business and foreign investments • Customized Market Research – personalized report prepared specifically for your company with information that answers your specific international business questions * Find these reports and more at www. export. gov

Our Services: Trade Events Promote Your Product or Service to Pre-Screened Buyers • Trade Missions – face-to-face meetings with pre-screened partners, country briefings, logistical support, and counseling • International Buyer Program – brings thousands of foreign buyers to U. S. trade shows each year • Certified Trade Fairs – the best international trade shows with access to thousands of buyers and pre-screened matching • Single Company Promotion – pre-screened invitations to help you promote your products/services

Our Services: Find a Partner Meet the Best Buyers, Distributors, and Agents • Gold Key Service – one-on-one meetings with pre -screened contacts in your desired market • International Partner Search – a detailed list of potential partners interested in your product/service • International Company Profile – low-cost due diligence and credit check on buyers & distributors • Featured U. S. Exporter (FUSE) – on-line listing featuring your company in the market of your choice • Commercial News USA – official U. S. trade magazine that promotes your product or service over 400, 000 international buyers to

Our Services: Consulting Get Personalized Advice at Every Stage of Exporting • Counseling – your local office that can help you with your export strategy and obtaining financing • Resolve Trade Issues – we can help resolve regulatory hurdles and recover payment • Platinum Key Service – customized, long-term support to help you achieve your business goals • Advocacy – U. S. diplomatic assistance to help level the playing field for your business

Leverage Our Additional Resources www. Export. gov – Your U. S. Trade Portal • Export basics, market research, HS & schedule B numbers • Information on international finance, logistics, and standards www. Export-U. com – FREE export tutorials Trade Information Center - 1. 800. USA. TRADE • Open Monday through Friday until 6 pm EST / 12 pm Hawaii time • Get immediate answers to your trade questions • Information on tariffs & duties, customs procedures, legal requirements and standards, government assistance programs Business Information Centers • China: www. export. gov/china • India: www. export. gov/india • Middle East / North Africa: www. export. gov/middleeast

Cost of Services Small Company New Exporter Discount Large Company Local Counseling FREE Market Research Reports FREE Country Commercial Guides FREE Export. gov Information FREE 1. 800. USA. TRADE FREE Gold Key (Matchmaking) $700 $350 $2, 300 International Company Profile (Due Diligence) $600 $350 $900 International Partner Search (Prequalified contacts) $550 $350 $1, 400 Featured U. S. Exporter (Overseas web promotion) $150 $75 $300 Our Services Commercial News USA (global print advertising) www. thinkglobal. us/advertiser/rates. php Note: A small company is defined as employing 500 employees or less. Fees vary for Trade Missions, Single Company Promotions, and the Platinum Key Service.

Our Strategic Partners Our Partners help you export by: • Conducting joint outreach events • Leveraging training and education • Reaching exporters through communication and marketing • Leading trade missions • Providing global contacts

What Our Clients Have To Say… “Using the U. S. Commercial Service’s foreign market research, we now export to more than 70 countries and have received a presidential award for our export success. ” Ampro Electronics, Los Angeles, CA “Trade shows supported by the U. S. Commercial Service are a great way to reach the right foreign buyers. ” Artcrete, Natchitoches, LA “Thanks to support from trade specialists at the U. S. Embassy, we not only saved jobs, but continue to increase our exports. ” Ford Meter Box, Wabash, IN “In only six months, local trade specialists helped me get quality distributors covering 13 foreign markets. ” Excel Holdings, Leesburg, VA

Mahalo! John Holman, Director Hawaii Export Assistance Center www. buyusa. gov/hawaii 808. 522. 8040 or 808. 522. 8041 www. export. gov 1. 800. USA. TRADE