Report from the State of Wisconsin Trade Mission to Japan and China

  New Credit Data Available in Dubai

Dubai's first independent credit bureau, Emcredit, has signed a technical integration deal with the government of Dubai to allow relevant credit and other information about companies to become available to potential suppliers, partners, or customers.  Emcredit plans to introduce credit reporting solutions to registered members of Emcredit.

Bashar Saleh Qallab, CEO of Emcredit, was quoted in ArabianBusiness.com saying "Credit reporting solutions are not only limited to banking data but also includes any form of information relating to an individual's payment history.  Together this becomes crucial data and helps assess the repayment capability of individuals and companies more effectively. Our agreement with eGovernment will ensure that our members receive a varied range of data that will support their decisions."  The agreement is part of the Dubai government’s efforts to increase transparency and accountability in all government sectors. 

  Start of Ramadan

The first day of Ramadan, the Muslim month of fasting, begins on September 13, 2007 in most parts of the world and can affect a firm’s dealings with Muslim customers or business partners.  During the Fast of Ramadan strict restraints are placed on the daily lives of Muslims.  They are not allowed to eat or drink during the daylight hours.  Smoking and sexual relations are also forbidden during fasting.  At the end of the day the fast is broken with prayer and a meal called the iftar.  In the evening following the iftar it is customary for Muslims to go out visiting family and friends.  The fast is resumed the next morning.

Business hours will be adjusted in consideration of Ramadan and the work hours are typically reduced.  If you need to conduct any business during Ramadan, it would be wise to call in advance to verify the adjusted business hours.  Meetings may be more difficult to schedule.

Independent eating establishments will not open until sunset.  Many will stay open into the early morning hours.  Most hotels will serve food for non-Muslims during the daylight hours only in a location that is not in the public view.  Non-Muslims are not expected to follow Islamic practices during the month, but it is respectful to avoid eating, drinking, or smoking in front of Muslims or in any public place in Muslim-prominent countries during daylight hours.

When the fast ends (the first day of the month of Shawwal) it is celebrated for three days in a holiday called Id-al-Fitr (the Feast of Fast Breaking). Gifts are exchanged. Friends and family gather for prayers and for large meals.  Since the dates of Ramadan are fixed by a lunar calendar, they do not always fall at the same time of year according to the Georgian calendar used in the United States.

  Dollar Hits Low against the Euro

The U.S. dollar fell to a record low against the euro on September 12 and also lost ground against the yen as investors bet that lower interest rates in the United States would decrease demand for the dollar.  The dollar declined for a sixth day, the longest losing streak since April.

As of late Wednesday, the euro traded in New York at $1.3908, up from $1.3832 late Tuesday; the European common currency has risen 5.4 percent against the dollar so far this year and about 1 percent this week.  

The dollar also slipped to ¥113.96 from ¥114.27 Tuesday, on speculation that Japanese investors would trim riskier overseas bond holdings after Prime Minister Shinzo Abe said he would resign.  The dollar has declined 9 percent versus the euro and 10 percent against the Australian dollar in the past 12 months as the European Central Bank and the Reserve Bank of Australia raised rates to 4 percent and 6.5 percent respectively, while the U.S. Federal reserve kept its overnight lending rate between banks at 5.25 percent.

The euro's strength threatens to make European exports more expensive, and therefore less competitive — although the currency's movements this year have been gradual rather than abrupt.  While the weaker dollar makes U.S. exports more competitive, it diminishes the spending power of American travelers in Europe. 

  Japanese Prime Minister Resigns

Japan’s embattled Prime Minister, Shinzo Abe, submitted his resignation on September 12.  While Japanese politicians have been calling for Mr. Abe to step down for months, the announcement took Japan by surprise.  Many people thought the Prime Minister should have resigned after his Liberal Democratic Party suffered a humiliating defeat in an upper house election over the summer.  Instead, he reshuffled the cabinet two weeks ago and prepared for a new legislative session that began this week.

The surprise announcement contributed to an 80.07 point (0.50 percent) decline in the Nikkei 225 index on the Tokyo Stock Exchange.  Some financial analysts think the uncertainty resulting from the quick resignation will be bad for the economy because policy decisions regarding Japan’s budget deficit and a possible consumption tax hike will be left undecided.  Others said Abe's exit could prove positive in the longer term if it clears the air and allows the ruling Liberal Democratic Party to stabilize after a series of political missteps.  Four cabinet ministers were forced to resign over the past nine months, and one, Abe’s first agriculture minister, committed suicide over a money scandal.

  U.S. Passports and Visas

The U.S. State Department has reported that routine passport application processing has been restored to the standard six to eight week processing time.  Expedited service should require no more than three weeks.  As of the beginning of September, the State Department issued over 16 million passports to U.S. citizens in fiscal year 2007, which ends on September 30, compared to 12.1 million issued in fiscal year 2006. 

The State Department has also implemented a number of new procedures to facilitate the issuance of visas needed by foreign business people traveling to this country.  The Business Visa Center (BVC) was established to answer visa process questions for U.S. companies that have invited employees, current or prospective business clients, and other business partners to visit the United States.  Last year the BVC fielded over 5,000 inquiries from U.S. firms, assisting 311,000 prospective travelers with the business visa application process.

All visa-issuing U.S. embassies and consulates worldwide now have special procedures to facilitate the processing of business visas for urgent business travelers, at the request of U.S. companies.  Procedures vary from country to country and can be found on the State Department website.

  China Raises Visa Fees for U.S.

Effective August 1, 2007, U.S. citizens will be charged a flat fee of $100 per person for a Chinese visa application regardless of the number of entries.  Expedited service fees will remain unchanged.  Charges for citizens of other countries may vary.  Chinese “F" Visas are issued to people who are invited to China for a visit, an investigation, a lecture, to do business, scientific-technological and culture exchanges, short-term advanced studies or internship for a period of no more than six months.  Single Entry (valid for 3-6 months), Double Entry (valid for 6 months), and Multiple Entry (valid for 6 or 12 months) visas are available.

  More Passport News: European Passport-free Area Expands

Traveling in Europe will be made even easier as eight countries in central and eastern Europe have passed the technical tests necessary to join the EU's Schengen borderless area early next year.  The new additions include the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia.  Initiated by a treaty signed in Schengen, Luxembourg in 1985 between Belgium, France, Germany, Luxembourg, and the Netherlands, border posts and checks have been removed between Schengen area countries and a common 'Schengen visa' allows tourist or visitor access to the area.

Two provisions - a functioning information system and a secure external border - were the final conditions imposed by the European Commission and the existing member countries of the Schengen area for the lifting of border controls with the central and eastern European applicants.  The plan is - after final political confirmation by EU ministers and leaders in the coming months - to stop border checks at land crossings as of December 31, 2007 and at airports by March 29, 2008.

  New Methods for Submitting Certificates of Origin in Canada

The Canada Border Services Agency (CBSA) has announced alternative methods of submitting certificates of origin that will reduce the use of paper versions.

As of August 30, the following options are considered acceptable by the CBSA:

a. Scanned certificates of origin: The exporter may scan a completed and signed certificate of origin for electronic transmission to the importer. This entitles the importer to receive and maintain the certificate of origin electronically and to transmit the scanned certificate of origin by e-mail upon request to the CBSA.

b. Certificates of origin with power of attorney: The exporter provides the importer with vested power of attorney, thereby authorizing the importer to complete the certificate of origin for the goods. The importer is allowed to complete and maintain the certificate of origin electronically and transmit it to the CBSA upon request. At that time, the importer must be able to prove to the satisfaction of the CBSA that he or she has the legal authority to complete and sign the certificate of origin.

c. Electronic certificates of origin - Customs Self Assessment (CSA) program participants only: All importers approved to participate in the CSA program may receive electronic certificates of origin. With this option, an alternative signature to the traditional cursive signature can be used on the certificate of origin. For example, the alternative could be a series of numbers that represent the exporter's signature. With this option, no one is required to physically sign the document and, as such, it can be both created and transmitted electronically without the need for any paper copy.  It should be noted that all the data elements on the certificate of origin are required but do not need to be in the form of a certificate. The importer is fully responsible to ensure the secure transmission and validity of the certificate of origin, including the signature on the certificate. This option is initially being offered to CSA participants to allow the CBSA to fully test the concept before determining the feasibility of expanding this option to all commercial importers.

Importers are reminded that when claiming preferential tariff treatment, all laws and regulations relating to the proof of origin must be met.  Questions or comments on the new procedures can be directed to the CBSA program advisor: Leah Kember, Senior Program Advisor, Admissibility Branch, Canada Border Services Agency,  leah.kember@cbsa-asfc.gc.ca, phone: (613) 952-2062.

  ITC Issues Year in Trade 2006 Report

On August 6 the U.S. International Trade Commission released The Year in Trade 2006, its annual review of U.S. trade-related activities. This publication provides a review of U.S. international trade laws, a survey of actions under U.S. trade laws, a summary of the operation of the WTO, an overview of free trade agreements and negotiations and a review of bilateral trade relations with major trading partners. It includes:

• complete listings of antidumping, countervailing, safeguard, intellectual property rights infringement and section 301 investigations undertaken in 2006;
• the operation of such programs as the Generalized System of Preferences, the African Growth and Opportunity Act, the Andean Trade Preference Act and the Caribbean Basin Economic Recovery Act;
• U.S. textile and apparel imports and developments in textile and apparel trade with selected partners;
• significant activities in the WTO, including its dispute settlement mechanism; the Organization for Economic Cooperation and Development; and the Asia-Pacific Economic Cooperation forum;
• developments in FTAs, including negotiations in 2006 with Korea, Malaysia and Panama, and activities under NAFTA; and
• bilateral trade issues with major trading partners such as the European Union, Canada, China, Mexico, Japan, Korea, Taiwan and Russia.

Click here to view a copy of the 210-page report is available on-line.

  Central Wisconsin Trade Education

Exporting Products and Services: Growing Your Business Beyond the Borders is an international trade program presented by the Central Wisconsin SCORE Chapter 535, the U.S. Department of Commerce, the UW-Stevens Point SBDC, UPS, the Wisconsin International Trade Team, the State Line World Trade Association, and Addison-Clifton, LLC.  It will be held at the SentryWorld Sport Center, Stevens Point, on September 27, 2007.

International trade experts will discuss the resources available in Wisconsin for those exporting their products or services.  Topics will include export financing, the SBA International Loan Program and Ex-Im Bank, recognizing scams, licensing, working in different cultures and countries, IncoTerms, shipping and containerization, exporting food products and livestock, credit risks, shipping options, and more.  The Keynote speaker will be Ulice Payne, Jr., President of Addison-Clifton, LLC and former President and Chief Executive Officer of the Milwaukee Brewers Baseball Club.  Mr. Payne’s firm delivers global trade compliance solutions, advisory services on regulations and global distribution compliance. 

The conference fee is $75 per person, which includes handouts, morning refreshments and lunch.  To reserve your place, please call the UW-SP Small Business Development Center at (715) 346-3861 or click here to register on-line.  Seating is limited so call early in order to attend.  The SentryWorld Golf Course is available for nine holes starting at 4 p.m.  For a golf game reservation call (715) 345-1600.

  The GLOBE Show

The Council of American States in Canada, including Wisconsin’s Trade Office in Toronto, is reviewing the possibility of organizing a group pavilion at the GLOBE trade show in Vancouver, March 12-14, 2008.  Next year’s event will be the 10th biennial trade show and conference on business and the environment.  Thousands of environmental business leaders, corporate environmental managers and sustainability practitioners from over 70 countries attend the event to explore the mutually inclusive goals of corporate sustainability, business growth, energy solutions, responsible investment and urban development.  More information on the show is available at http://www.globe2008.ca/index.cfm.

The Wisconsin Department of Commerce has exhibited at GLOBE in past years.  The Trade Office in Toronto can conduct Agent/Distributor Searches or arrange Matchmaker meetings for Wisconsin participants.  Interested firms can contact Christine Stamm, Commerce’s Trade Show Coordinator, christine.stamm@wisconsin.gov, ph: (608) 264-7824.

  Export opportunities in South America

Argentina, Brazil, and Chile account for 57 percent of U.S. exports to South America and these three markets have experienced double-digit growth in purchases from the United States over recent years.  In the first two quarters of 2007, U.S. exports increased by 17 percent to Argentina, 31 percent to Brazil, and 18 percent to Chile.  If you are interested in expanding your business opportunities in these important markets, consider joining a multi-state trade mission organized by the Council of Great Lakes Governors and the Wisconsin Department of Commerce in April 2008.

Brazil's export-led economy continues to grow due to strong global demand for commodities.  Inflation is under control and interest rates have come down, assisting in the continued growth of consumption and investment.  Thanks to a steady appreciation of the Brazilian real, imports are also expanding at a fast pace, up 26 percent in the first two quarters of the year. 

Chile experienced unexpectedly strong growth in the first quarter of 2007, and the most recent updates regarding consumer demand and industrial production demonstrate continued economic expansion.

Argentina, while having demonstrated an impressive recovery from its economic crisis of 2001/2002, continues to experience a challenging inflation rate.  However, the economy is still expected to grow 7 percent in 2007.  One example of industrial expansion is the Argentine automotive industry, which saw exports grow by over 30 percent in the first seven months of the year.

For more information about the trade mission or South American markets in general, contact our Latin American specialist, Ms. Susan Dragotta, at susan.dragotta@wisconsin.gov, or 262-691-5147.

  Trade Mission to Mexico

Wisconsin companies are invited to join a trade mission to Mexico in February 2008. Any Wisconsin company is welcome to join the mission to investigate market opportunities in Mexico, meet potential distributors or sales reps, and make key contacts in the market.  Wisconsin exports to Mexico were $1.9 billion in 2006, with year-on-year growth of 39.1%.  If you are interested in exploring the Mexican market, please join us on this trade mission.  For more information on the mission, please contact Mr. John Konkel, john.konkel@wisconsin.gov, at (715) 833-6441.