nasbite trade capacity building for nafta
TRANSCRIPT
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Trade Capacity Building for NAFTA:Trade Capacity Building for NAFTA:
Helping Small Businesses AchieveHelping Small Businesses Achieve
Better OutcomesBetter OutcomesProfessor Steve JennerProfessor Steve JennerCollege of Business AdministrationCollege of Business Administration
& Public Policy& Public Policy
California State UniversityCalifornia State UniversityDominguez HillsDominguez HillsEE--mail:mail: [email protected]@csudh.edu
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Outcomes vs InputsOutcomes vs Inputs
DESIRED OUTCOMES:DESIRED OUTCOMES:
exporter business performance:exporter business performance:
sales growthsales growthLongevityLongevity
jobs/retentionjobs/retention
distributors/agents USDOCdistributors/agents USDOC
additional countriesadditional countries
INPUTS:INPUTS:
Workshops, seminars, conferences, consulting,Workshops, seminars, conferences, consulting,websites, grants for trade showswebsites, grants for trade shows
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Actual vs potentialActual vs potential
226,000 exporters226,000 exporters
Potential 7 millionPotential 7 million 26 million total26 million total
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Success StoriesSuccess Stories
Faces of TradeFaces of Trade www.traderoots.orgwww.traderoots.org
3 Case Studies by Prof. Jenner:3 Case Studies by Prof. Jenner:
Air Power in MexicoAir Power in Mexico
Engineering ServicesEngineering Services
Pulse Engineering ClinicPulse Engineering Clinic
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SME Exports 2005 $ billionSME Exports 2005 $ billion
International Trade Admin.International Trade Admin.
24% NAFTA = $64 billion24% NAFTA = $64 billion
29%Mexico = $33
29%Mexico = $33
21% Canada = $3121% Canada = $31
46% CAFTA = $746% CAFTA = $7
74% Nicaragua = $ .474% Nicaragua = $ .451% Guatemala = $ 151% Guatemala = $ 1
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Need for StrongerNeed for Stronger
National AdvocacyNational Advocacy Small Business Exporters AssociationSmall Business Exporters Association
US Chamber of CommerceUS Chamber of Commerce Congressional CommitteeCongressional Committee
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Resistance to AssistanceResistance to Assistance
Small business managers fearSmall business managers fearinternational trade due to theirinternational trade due to their
misperception of risks:misperception of risks:foreign language necessaryforeign language necessary
financial risksfinancial risks
no attorney, marketingno attorney, marketingincreased costs ex) freightincreased costs ex) freight
Richard Ginsburg SBARichard Ginsburg SBA
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SBDC surveysSBDC surveys
Prof. George Solomon GWUProf. George Solomon GWU
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US Dept. of CommerceUS Dept. of Commerce
www.tradeagreements.govwww.tradeagreements.gov
Alliances with eBay FedX UPSAlliances with eBay FedX UPS
New Basic Guide to ExportingNew Basic Guide to Exporting
Intl Trade Advisory CommitteeIntl Trade Advisory Committee
ITAC11
small and minorityITAC11
small and minoritybusinessbusiness
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Seamless Service ProcessSeamless Service Process
Maurice Kogons modelMaurice Kogons model
Best Market Reports for 17 industriesBest Market Reports for 17 industriesprepared by studentsprepared by students
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Practitioners and EducatorsPractitioners and Educators
working togetherworking together Identify the most promising industryIdentify the most promising industry
sectorssectors
Identify specific small businesses inIdentify specific small businesses inthose sectorsthose sectors
Show them how they can win exportShow them how they can win export
salessales Provide success stories by following upProvide success stories by following up
with service providerswith service providers
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Reframe NAFTA DebateReframe NAFTA Debate
How to make it work for smallHow to make it work for smallbusiness exports given devaluationbusiness exports given devaluation
US$ and reduced tariffs (Offense)US$ and reduced tariffs (Offense)
versusversus
How to reduce competition on theHow to reduce competition on the
basis of labor and environmentalbasis of labor and environmentalstandards (Defense)standards (Defense)
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NAFTA ControversyNAFTA Controversy
NAFTA increased the aggregate tradeNAFTA increased the aggregate tradeand investment flows between theand investment flows between the
U.S., Canada and Mexico, but manyU.S., Canada and Mexico, but manyobservers believe that the benefits didobservers believe that the benefits didnot reach small businesses.not reach small businesses.
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NAFTA helped otherNAFTA helped other
countries morecountries more Most people in the United States,Most people in the United States,
Canada, and Mexico believe thatCanada, and Mexico believe that
NAFTA produced better results for theNAFTA produced better results for theother trade partnersother trade partners
Our country lost more than it gainedOur country lost more than it gained
compared to our trading partnerscompared to our trading partnerswithin NAFTA and that Some of ourwithin NAFTA and that Some of ourpeople were harmedpeople were harmed
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3Research Questions3Research Questions
1.1. What can be done to attract moreWhat can be done to attract moreindividuals, especially minorityindividuals, especially minority
entrepreneurs, to grow small businessesentrepreneurs, to grow small businessesthat take advantage of NAFTA?that take advantage of NAFTA?
2.2. What do these individuals need to knowWhat do these individuals need to knowabout NAFTA and trade and investmentabout NAFTA and trade and investment
from the micro (firm) perspective?from the micro (firm) perspective?3.3. How well are their needs currently beingHow well are their needs currently beingmet? What are the deficiencies in terms ofmet? What are the deficiencies in terms ofmeeting their needs?meeting their needs?
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Results of a 2007 surveyResults of a 2007 survey
of expertsof experts Small business managers needSmall business managers need
relevant training and consulting asrelevant training and consulting as
well as microwell as micro--loans for exportloans for exportmarketing and transaction creditmarketing and transaction creditguaranteesguarantees
Offer incentives for small businessesOffer incentives for small businessesto exhibit at international trade showsto exhibit at international trade shows
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DeficienciesDeficiencies
How and where to export to MexicoHow and where to export to Mexicoand Canadaand Canada
How to deliver the goodsHow to deliver the goods
How to apply their financial skillsHow to apply their financial skills(fiscal responsibility, budgets, getting(fiscal responsibility, budgets, getting
paid)paid)
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More DeficienciesMore Deficiencies
Lack of knowledge of export controlsLack of knowledge of export controlsand quality compliance standardsand quality compliance standards
(ISO/EU Certification)(ISO/EU Certification)
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Center for InternationalCenter for International
Trade Development (CITD)Trade Development (CITD)According to Maurice Kogon, Director of theAccording to Maurice Kogon, Director of the
Torrance CITD, 80 percent of U.S. firms doTorrance CITD, 80 percent of U.S. firms donot export because they lack threenot export because they lack threefundamentals:fundamentals:
1.1. the ability to produce a competitivethe ability to produce a competitiveproduct,product,
2.2. sound entrepreneurial practicessound entrepreneurial practices
(operations management and basic(operations management and basicsurvival skills), andsurvival skills), and3.3. the knowledge of how and where tothe knowledge of how and where to
export.export.
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User cars to MexicoUser cars to Mexico
Monday March 10, 2008 only 1998Monday March 10, 2008 only 1998cars allowedcars allowed
No tariffsNo tariffs
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Other sectorsOther sectors
Export services logistics legal acctExport services logistics legal acct
AerospaceAerospace
Agriculture and Food processingAgriculture and Food processing
MilitaryMilitary
ManufacturersManufacturersApparelApparel