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IMPORTANT: As of July 1st, 2011, functions once performed by the Wisconsin Department of Commerce have been moved to other state agencies and the Wisconsin Economic Development Corporation. The former Commerce web site will continue to exist for the next several months as resources are moved to new web site locations. We will make every attempt possible to direct our users to the new locations as web resources are moved.
WISCONSIN WORLDWIDE Vol. 6 #1, September 2006
In
this issue:
Wisconsin Exports up in 2006
Wisconsin exports for the first half of 2006 continued to show strong
gains after record-breaking totals in 2005. The half-year
total of $8.5 billion represents an increase of 18.4 percent over the
same period in 2005. For the period, total U.S. exports grew
by 13.8 percent.Through the second quarter, exports to Canada, Wisconsin’s largest export market, grew by 6.9 percent to $2.8 billion. Canada accounts for just under a third of all Wisconsin exports. As recently as the first quarter of 2004 our northern neighbor accounted for 40 percent of Wisconsin’s exports. Exports to Mexico, Wisconsin’s second largest export market, grew by 30.8 percent to $851.1 million. China ranked third with a 26.3-percent increase to $401.9 million. Office machine parts are the leading Wisconsin export to China. Engine parts, the #2 category, grew by over 100 percent. The United Kingdom ranked fourth in purchases from Wisconsin with a 14.0 percent increase to $384.2 million. Exports of computers and components and tractors were especially strong in the first half of the year. Japan was fifth with an 11.6 percent increase to $356.2 million. Exports to Saudi Arabia and a number of other Middle Eastern countries grew significantly, thanks primarily to a surge in motor vehicle shipments. Through the second quarter, industrial machinery continued as Wisconsin’s top export commodity, growing by 9.7 percent to $2.8 billion. The leading subcategory was spark ignition reciprocating or rotary internal combustion piston engines, which account for over 7 percent of Wisconsin’s total exports. Electrical machinery ranked second with a 35.1 percent increase to $1.1 billion. Medical and scientific instruments ranked third with an increase of 10.7 percent to $1.0 billion. Transportation equipment ranked fourth with a 69.6 percent increase to $862.3 million. Exports of passenger vehicles surged by over 1000 percent to become the state’s #2 export subcategory. Paper and paperboard was the state’s fifth largest export with a 4.7-percent increase to $399.4 million. HK/China Legal ReciprocityOn July 14, 2006 the Chinese central government and the Hong Kong Special Administrative Region (HKSAR) signed an “Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters.” The new Arrangement means that money judgments by a designated court of either China or Hong Kong resulting from a case involving a civil and/or commercial contract containing a valid 'choice of court agreement in writing' clause can be enforced in the other jurisdiction.Hong Kong’s longer experience of dealing with commercial law cases will increase its importance as a center for the resolution of business lawsuits involving Chinese parties. Additional details on the Arrangement can be found at the Hong Kong Department of Justice website. China’s Increasing Internet Use
The China Internet Network Information Center reported the number of
Chinese Internet users (at least one hour per week) reached 123 million
at the end of June, with two-thirds of them using broadband
connections. That represents a nearly 20 percent increase
from June of 2005. While the number of users is second
largest in the world to the United States, it also represents just 10
percent of the Chinese population. Click here
to see the
full report.
Eurozone GrowthThe 12 countries using the euro currency experienced their strongest growth in six years, according to a report issued by Eurostat, the EU Statistical Office, on August 14. The 0.9 percent growth for the second quarter of 2006 was the highest since 2000. France experienced the highest growth at 1.2 percent. The EU Commission subsequently revised its forecast for the current quarter upward. Click here for the full report. Eurostat also estimated that the euro area had a €2 billion trade surplus with the rest of the world in June 2006.Automated Export SystemWhile exporters and the shipping industry have been expecting the federal government to make the filing of export documents by way of the Automated Export System (AES) mandatory for many months now, the U.S. Customs and Border Protection Agency has still not made it official. In January of this year the Journal of Commerce reported that 96% of all eligible export shipments were already processed through AES rather than the paper version of the Shipper’s Export Declaration (SED). If your firm is one of the few that is not using AES, or your freight forwarder is not submitting the data for you, you should become familiar with the system in order to ease the transition when it finally becomes mandatory.The federal government began phasing in use of AES in 1995. AES is a nationwide system operational at all ports and for all methods of transportation. It was designed to assure compliance with and enforcement of laws relating to exporting, improve trade statistics, reduce duplicate reporting to multiple agencies, and improve customer service. Export information is collected electronically and edited immediately, allowing errors to be detected and corrected at the time of filing. Registration for AES begins with a letter of intent sent to U.S. Customs. More information on the process can be found at the U.S. Customs website. You can also register on-line with AES Direct. Greater ASEAN Integration
The trade ministers of the 10 country Association of South
East Asian Nations (ASEAN) agreed on August 22 to accelerate their
efforts to form a European-style single market, although without a
common currency. The group set 2015 as the target
date. The move is intended to help the region stay
competitive with China and India which have been attracting increased
foreign investment at ASEAN’s expense. Foreign
direct investment in South East Asia set a record at $38 billion last
year, a level which had not been reached since the 1997-98 Asian
financial crises. On August 25 the trade ministers and U.S. Trade Representative Susan Schwab signed a Trade and Investment Facilitation Agreement. The agreement is intended to create a formal format to discuss ways to increase trade and investment. The United States concluded a Free Trade Agreement (FTA) with Singapore in 2003 and is currently negotiating FTAs with Thailand and Malaysia. The ASEAN TIFA is not intended as a precursor FTA with the whole region. There are significant differences in the level of economic development between the members of ASEAN – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The United States has significant restrictions on doing business with military-ruled Myanmar. In May, Vietnam completed bilateral market access negotiations with the United States and Mexico. The country is now poised to begin commitment negotiations that will lead to WTO membership. Two issues which have been raised repeatedly in previous meetings appear close to resolution. One is trading rights, with Vietnam now agreeing that foreign companies can have the right to import into Vietnam even if they do not have commercial presence, so long as they register with the Vietnamese government. Members welcomed this although some are still seeking further clarification. The other is excise duty on spirits and beers. Business Scams in ChinaScam artists have begun preying upon U.S. firms interested in entering the lucrative Chinese market. The scam starts with what initially looks like a genuine product order. A Chinese trading company asks for quotes on various metal stamped parts and molds. Representatives of the U.S. firm are then invited to China to discuss the possibility of establishing on-going business relationships. The U.S. representatives are initially given VIP treatment. At some point an "interpreter" indicates that very expensive gifts, usually gold, are needed to get the contract signed. In reality, there is no contract, regardless of whether gifts are delivered or not. In some cases foreign businessmen have been held in their hotels until they pay.China has rapidly become a large market with many opportunities for U.S. exporters. It is important for any company seeking to do business there to conduct its due diligence and check the bone fides of potential partners, customers, or suppliers. The Wisconsin Department of Commerce Trade Office in Shanghai is capable of conducting background checks in China for Wisconsin businesses. To use such a service or to learn more about legitimate export opportunities in China, contact Ms. Beng Yeap, Asia Specialist, ph: (608) 266-1480, beng.yeap@wisconsin.gov. U.S., Other Countries Concerned by European Chemical RulesAs According to the U.S. State Department, the United States along with Australia, Brazil, Chile, India, Israel, Japan, Korea, Malaysia, Mexico, Singapore, South Africa and Thailand want the EU to modify a sweeping new chemicals regulation that could affect the import and export of 30,000 man-made compounds, many of which are used in common products worldwide. The new EU-proposed system of Registration, Evaluation and Authorization of Chemicals (REACH) could come into force in 2007 under the current legislative schedule. REACH addresses the import and export of industrial chemicals as well as raw ore and such household products as office supplies, inks, consumer electronics and cosmetics. REACH would be the most far-reaching business legislation the EU has ever passed. In a joint statement issued June 8, the non-EU nations said REACH could harm international trade due to the high cost of complying with the new regulations. Many developing countries would face serious challenges in complying with proposed regulations, they said. In addition, the trading partners said, hazardous and potentially toxic materials are already governed by existing international chemicals and trade agreements. Click here for more information.The Big Canadian Market
Canada is very often recognized as one of the easier markets for
Wisconsin exporters to make sales. The fact that it is an
exceedingly large market and one with significant regional differences
is sometimes overlooked. Canada buys nearly a quarter of all
U.S. exports. On a per capita basis, Canadians buy
approximately $6,000 worth of U.S.-made goods every year.
That is six times more than the next highest ranked country, Mexico.Wisconsin ranks #10 out of the 50 states in exports to Canada. Wisconsin alone exports more to Canada than the United States as a whole exports to Russia, South Africa, Norway, Chile, or Egypt. Three-fourths of Wisconsin’s exports go to the Province of Ontario. Our #2 customer, Manitoba, buys 11%. The Province of Alberta in western Canada has been experiencing significant growth in the last few years thanks to a booming energy sector. Nearly one-third of the United States’ energy supply comes from Canada. The Horizon’s Oil Sands Project in Northern Alberta is expected to produce 6 billion barrels of oil and will be in various phases of construction until 2011. The project requires capital investment of nearly $11 billion with an annual operating budget around $740 million. Edmonton, Alberta’s capital, Calgary, the province’s largest city, and many other communities are facing the challenge of meeting the demand of the growing oil and gas industry. There is a significant ongoing demand for structural steel; pressure vessels, tanks and heat exchangers; and turbines and pumps for petrochemical applications. There is also a need for forging suppliers who can supply valves, wear materials, and pressure fittings in a timely manner. With the vast number of people moving to the province to take part in the economic boom, the demand for housing and consumer products is breaking records. Wisconsin exporters who think the Alberta market can be adequately handled from Ontario are probably losing significant sales opportunities. The rapid transformation of the market is creating many opportunities to establish new channels of distribution and sales networks. The province, with a current population of approximately 3 million, has no debt and issued rebate payments averaging $400 Canadian per person to residents earlier this year. Alberta also has no provincial sales tax. Goods imported into the province are assessed the 6% nation-wide Goods and Services Tax (GST), but no additional provincial tax, which is 8% in Ontario. Wisconsin’s Canadian Trade Office is ready to assist firms seeking to develop sales in the booming Alberta market. Firms directly involved in the oil and gas industry may be interested in exhibiting at the next GO Expo in Calgary, June 12-14, 2007, the largest show in the industry in Canada. Registration for booth space closes in November, but now is a good time to start laying the groundwork that can culminate in meeting potential business partners or showcasing your products at the expo. Valuable contacts and market research can be gained by walking the show as well as exhibiting. The Canadian Trade Office can conduct a Market Overview, Agent/Distributor Search, Client/End-User Search, or pre-arrange appointments for you on the show floor. The office can provide other assistance to enter or expand your sales in Alberta. For more information on the Canadian market or the Gas and Oil Expo, contact Mr. Stanley Pfrang, ph: (608) 267-0639, stanley.pfrang@wisconsin.gov. New Name for Food Export OrganizationFor more than 30 years, Midwestern processed food and agricultural companies counted on the Mid-America International Agri-Trade Council (MIATCO) for export assistance to reach foreign markets. In recognition of the organization’s stronger, more unified, and greatly streamlined association serving Midwestern U.S. food and agricultural companies, MIATCO has changed its name to Food Export Association of the Midwest USA. The new name should makes it easier for companies to understand the organization’s connection to food exporting.Food Export Association of the Midwest USA’s innovative alliance with Food Export USA – Northeast enables both organizations to provide export assistance that helps facilitate trade between local food companies and importers around the world. Together, the organizations provide programs and services covering all levels of exporting experience. A new customer relationship management program that will enable the Food Export Association of the Midwest USA to tailor services more specifically to companies’ needs and streamlined services will be introduced in the coming months. Programs will be easier to access and require less paperwork. Additional information can be found on-line at www.foodexport.org. On-line Update of Exporter DatabaseThe Wisconsin Department of Commerce’s on-line update of its database of exporters will continue until September 15. The database is used to send information on upcoming trade events, international news and regulations, and buying delegations visiting the state to the most appropriate firms. Follow the link to visit the on-line update site. If your firm has not provided current contact person, product, and market interest information yet, contact Mr. Stanley Pfrang, ph: (608) 267-0639, stanley.pfrang@wisconsin.gov, to submit current information.Chinese Feed and Ingredient Buyers Visiting WisconsinThe Wisconsin Department of Agriculture, Trade and Consumer Protection in cooperation with the Food Export Association of the Midwest USA is hosting five livestock feed industry professionals and buyers from China during the World Dairy Expo, held in Madison October 3 - 7. The buyers will be available for one-hour meetings on the World Dairy Expo grounds. World Dairy Expo is the premier exhibition of the most modern dairy equipment and the newest dairy technology and innovations, including animal health supplies, milking systems, feeding products, forage handling and manure equipment plus embryos, semen and genetic research. In a typical year, over 3,500 international guests from more than 75 different countries worldwide attend the expo. To make an appointment with the Chinese buyers or to make contacts with buyers from other countries at the World Dairy Expo, please contact Mr. Dan Vogel, International Marketing Consultant at the Wisconsin Department of Agriculture, Trade and Consumer Protection, ph: (608) 224-5113, dan.vogel@datcp.state.wi.us.Southern Africa Business BriefingsRichard Zurba, Director of the Council of Great Lakes Governors Trade Office in South Africa, will be in Madison on September 21 and in Milwaukee on September 22 to make presentations on export opportunities in the region. Mr. Zurba will also be available for a limited number of one-on-one appointments with businesses seeking more in-depth consultations about doing business in Southern Africa. The briefings are free of charge, but to ensure adequate space and handouts, please register by contacting Ms. Tru Mwololo, tmwololo@commerce.state.wi.us, ph: (608) 267-0587. Please provide names, titles, and e-mail addresses of attendees, the name of your business or organization, and whether or not you are requesting a one-on-one meeting.
The Wisconsin Department of Commerce will be participating in a multi-state trade mission to South Africa in February 2007. Click here for more information. Benelux Business Matchmaker Mission - NovemberThe Wisconsin Department of
Commerce plans to lead a Business Matchmaker Mission to Amsterdam and
Brussels which will target the entire Benelux region of Europe
(Belgium, the Netherlands, and Luxembourg), November 8 - 14,
2006. The Benelux countries provide proven and dynamic
markets for Wisconsin exports and offer convenient shipping and
logistical access to the entire European Union. The mission is open to
all Wisconsin exporters interested in establishing or expanding their
sales in these countries.
For companies involved in the medical equipment/accessories or marine equipment sectors, the mission is scheduled to give participants the opportunity to attend one of two leading industry trade shows: METS 2006 in Amsterdam, November 14-16, is the premier European exhibition of marine equipment and the leisure craft industry, while MEDICA 2006 in Dusseldorf, Germany, November 15-18, is the world's leading medical trade fair. Since 2001, Wisconsin exports of medical-related instruments to the Benelux countries have increased 55%, while exports of pleasure boats and other marine equipment have jumped over 160%. Wisconsin's trade office in Europe will arrange customized business appointments with pre-qualified prospective representatives, distributors, partners or end-users throughout the Benelux region for mission participants. If you are interested in finding out more information about the mission, please contact our European Specialist, Mr. Brad Schneider, ph: (920) 420-1796, brad.schneider@wisconsin.gov. Please be aware that the registration deadline is set for Friday, September 15, 2006. Central America Export Sales Mission – January/February Wisconsin
companies
seeking
to boost sales to Central America are invited to join the Wisconsin
Department of Commerce, Division of International Development, in an
export sales mission to Panama City, Panama and San José,
Costa Rica from January 28 - February 2, 2007.This region is currently a hotspot for Wisconsin exports. For the first six months of 2006, Wisconsin’s export trade is up 67% to Panama and 38.5% to Costa Rica. This is now an excellent time for Wisconsin businesses to reach partners in Central America. With the assistance of high-level trade officials in both countries, Wisconsin’s export sales mission to Panama and Costa Rica is designed to help identify and initiate business relationships with buyers in these countries. All mission participants will take part in one-on-one personalized business appointments with potential sales partners (agents, distributors, reps, end-users, etc.) and networking events with local VIP’s, government officials, and business partner organizations for added exposure. Companies qualifying for the Wisconsin Trade Show Grant Program can have the costs of the matchmaking appointments, interpreters, and shipping samples/brochures reimbursed (up to $5,000). Some restrictions may apply and participants have to be pre-approved for the grant before the mission departs. Participants are responsible for their travel, lodging, meals, gratuity, and other incidental expenses resulting from the mission. Mission participation is limited to 20 Wisconsin companies who best meet the participation criteria. Final selection will be confirmed after a review to ensure maximum market potential. We will be targeting businesses that will have great potential for sales success there. We hope you will be able to join us on this important mission as we strive to strengthen business ties between Wisconsin and Central America. The deadline for registration is December 15, 2006 so please register early to ensure a spot. For additional mission information, contact Mr. Greg Miller, International Consultant, ph: (608) 266-0393, greg.miller@wisconsin.gov. Business Development Mission to Southeast Asia - FebruaryEnvironmental Technology and Information Technology companies, will have the chance to explore some of the most promising markets in the world with the help of the Wisconsin Department of Commerce and US Commercial Service (USCS). Wisconsin is teaming up with the State of Minnesota to lead companies on a business development mission to the cities of Kuala Lumpur, Singapore and Manila, February 3-14th, 2007. IT companies supplying to multinationals, will probably find domestic customers with operations in one or more of the destination countries. As environmental issues becoming a greater concern to many developed and developing countries, demand for U.S. services and products will grow.Malaysia is the United States’ largest trading partner in S.E. Asia and 10th in the world. The two countries engage in $44 billion worth of two-way trade each year. That is 60% more than U.S./India trade. The United States is Malaysia's second-largest source of imports. The United States and Malaysia are currently negotiating a free trade agreement. The 3rd round of negotiation is scheduled for the week of September 18 in Kuala Lumpur. Singapore is one of the world's most prosperous countries, with a per capita GDP equaling that of the leading nations of Western Europe. Singapore is highly ranked for its economic competitiveness, and was the world's most competitive country from 1997 to 1999 as ranked by the World Economic Forum. The Port of Singapore, the world's busiest in terms of shipping tonnage, is a key component of Singapore's prosperity and a transshipment hub for the region. Singapore is a leader in manufacturing of computer components, petroleum refining, and business services. The United States currently has a free trade agreement with Singapore. The Philippines’s economy showed resiliency during the Asian financial crisis and is supported by its export-oriented manufacturing sector, particularly in electronics and automotive parts. The Philippines has pursued a policy of economic liberalization in the past decade, especially in the retail trade, telecommunications, banking, mining, oil sector, and power sectors. Dell recently opened a call center the Philippines. At each stop, mission participants will receive tailored industry briefings, U.S. embassy-sponsored networking events, host country government briefings, site visits, and one-on-one meetings customized to each business’ specifications. For more information, please contact Ms. Beng Yeap, ph: (608) 266-1480, beng.yeap@wisconsin.gov. South Africa Mission - FebruaryDid you know that South Africa is one of Wisconsin’s top 25 export destinations? In 2005 Wisconsin firms shipped over $83 million worth of products there. That is more than was shipped to Russia, Norway, New Zealand, or Israel. To help additional Wisconsin firms gain market share in southern African countries, the Wisconsin Department of Commerce is cooperating with the Council of Great Lakes Governors (CGLG) to sponsor a trade mission to South Africa February 16-25, 2007.The CGLG Trade Office in South Africa will arrange customized one-on-one business appointments with pre-qualified agents, distributors, and buyers in Johannesburg, Durban, and Cape Town; conduct in-country market research and briefings; organize business networking events; conduct extensive in-country promotional campaigns; and arrange lodging and ground transportation. If you are interested in finding out more about the mission, please contact the Division Director, Ms. Mary Regel, ph: (608) 266-1767, mary.regel@wisconsin.gov. HOSPITALAR Health Technology Show in São Paulo - June
The 14th International Trade Fair for Products, Equipment, Services and
Technology for Hospitals, Health Clinics and Laboratories (HOSPITALAR)
will be held in São Paulo, Brazil, June 12-15,
2007. Hospitalar is South America’s largest medical
equipment event, and Brazil is the region’s largest market
for healthcare technologies. The 2006 event attracted over
70,000 professionals from 52 countries. Kirk Rossi, Director of International Sales at Nasco in Fort Atkinson, participated in the 2005 and 2006 Hospitalar trade shows. He had this to say about the event, “Hospitalar outperformed every other foreign trade show with standing room only in our booth all day long. The 2006 event showed a marked increase in higher quality buyers and international visitors. I would highly recommend this show for other Wisconsin medical equipment manufacturers interested in expanding sales to Brazil and the Southern Cone Region.” Wisconsin and several other Midwestern states are considering a shared pavilion at the 2007 event. Our trade office in São Paulo can conduct pre-show research and arrange pre-qualified business appointments with prospective representatives and/or clients for your company at the show. As needed, we can also arrange for interpreters to assist you at the show. Booth space at this show sells out quickly. If interested, contact Ms. Susan Dragotta, Latin America Specialist, ph: (262) 691-5147, susan.dragotta@wisconsin.gov, by Friday, October 13. More information on the event is available at www.hospitalar.com. Opportunity for Business Travel to IndiaIndia is the world's fastest growing free-market democracy and it presents many opportunities for Wisconsin businesses. Last year Wisconsin ranked #15 among the 50 states for shipments to India. Our exports to India grew by 20 percent to reach $138 million. Industrial and electrical machinery and medical devices dominate the state's exports to India, but the country's expanding economy and growing middle class are creating sales potential in many more industries.To help more U.S. companies learn about India first hand and make the kind of contacts that will lead to long-term business success, the U.S. Department of Commerce is sponsoring a Business Development Mission to India to be led by the Under Secretary for the International Trade Administration. The mission will have two parts: the Mumbai Business Summit (November 29-30) and Spin-Off visits to key cities around India (December 4-5). The Mumbai Business Summit will gather India's high-level business, industry, and government representatives in the country's commercial and financial capital. U.S. participants will be able to develop a broad network of useful contacts. Breakout sessions during the summit will address details of India's trade and investment climate. The Spin-Off Visits were designed to give participants exposure to some of the great regional differences of the country. Participants can choose to visit Bangalore (the Silicon Valley of India), Chennai (an auto production and IT center), Hyderabad (home to the Indian School of Business and Microsoft's India Development Center), Kolkata (financial hub for eastern India with strong food processing, healthcare, and chemical industries), or New Delhi (the capital and center for defense, energy, environmental, telecommunications, and transportation centers). Participants may also choose to stay in Mumbai for additional meetings. Space is limited. An initial interest form can be completed on-line at export.gov/indiamission/. A U.S. Commercial Service representative will get back to you with additional information. International Workshops in Eau ClaireUW-Eau Claire Continuing
Education and Small Business Development Center are sponsoring four
half-day workshops for exporters in the coming months:
Alverno College Sponsoring Hong Kong/China Breakfast SeminarsThe Alverno College in
Milwaukee is sponsoring a series of breakfast seminars on doing
business in Hong Kong and China. Led by Alverno business
faculty experienced in global business, each session will also feature
a local business person. Topics include:
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