Click here to listen to an update from Nancy Ward, Director of Wisconsin’s Trade Promotion Office in Canada on market conditions there, opportunities for Wisconsin exporters, and strategies for success. This update was recorded at Navigating the Global Marketplace - Opportunities for Northern Wisconsin Businesses, a day-long conference held in Wausau in May during the Trade Promotion Office directors’ annual visit to the state.

Canada is the number one destination of U.S. exports. The United States exported $249 billion of goods to Canada in 2007, contributing to the $566 billion in total trade between the nations. This bilateral trade also affects employment in the United States: 7.1 million jobs are directly linked to Canada-U.S. trade (141,500 of which are located in Wisconsin) and 18 percent of all U.S. trade is with Canada. Indeed, in 2007, 76 percent of all Canadian exports were shipped to the United States ($317 billion) and 65 percent of goods imported into Canada originated in the United States ($249 billion). Since the enactment of the North American Free Trade Agreement in 1994, trade between the United States and Canada has increased by an average of 6.75 percent annually.

Wisconsin ranks 13th nationally in trade with Canada. In 2008, 30.5 percent of Wisconsin exports went to Canada totaling just under $ 6.5 billion. An overwhelming 71 percent of Wisconsin exports went to the province of Ontario, with a further 12 percent going to Manitoba.

The oil sands of Western Canada have spurred significant growth outside of the traditional centers in Eastern Canada. Consumer demand for lean technology and green building materials and clean technology innovations are also opening new market opportunities. Canadian businesses continue to look for new and innovative products that will give them an edge in the market.

Canadian firms continue to show strong interest in strategic partnerships with allies within the NAFTA region. Canada’s business practices, attitudes, and conditions are closer to those in the Midwest than are the business practices of any other country in the world. The geographical proximity reduces time and expense travelling to the market. NAFTA also offers tariff-free benefits. Add the advantages of congruent time zones, a straightforward regulatory regime, and a common language in much of Canada, and doing business in Canada simply makes good sense.

The Canadian Trade Office was opened in 1990, and is jointly funded by the states of Wisconsin and Pennsylvania. Our office offers the best possible assistance to new and established companies wishing to pursue export opportunities in the Canadian market. Nancy Ward assumed the position of Director in 2004. She is heavily involved in the local trade community, previously holding board positions for the International Trade Club of Toronto and the Organization of Women in International Trade-Toronto. Prior to working with the office, Nancy held positions in education and sales & marketing in the automotive parts field. Nancy completed an honors degree in Political Science and a postgraduate designation in International Business.

To make use of the services of the Canada Office, contact Stanley Pfrang, stanley.pfrang@wisconsin.gov, (608) 267-0639.

Click here to listen to an update from Vince Lencioni, Director of Wisconsin’s Trade Promotion Office in Mexico on market conditions there, opportunities for Wisconsin exporters, and strategies for success. This update was recorded at Navigating the Global Marketplace - Opportunities for Northern Wisconsin Businesses, a day-long conference held in Wausau in May during the Trade Promotion Office directors’ annual visit to the state.

Since the beginning of the North American Free Trade Agreement, trade between the United States and Mexico has grown consistently, making Mexico the United States’ 2nd largest trade partner for exports, which represented an 11.66% of the total United States exports in 2008. That same year, Mexico increased its imports from the US by 8.5%, importing a total of $151 billion dollars in US goods. Mexico’s GDP is about $1.5 trillion dollars, with total annual imports of over $300 billion. Half of Mexico’s imports come from the US, who also buys 80% of Mexico´s exports.

Wisconsin’s export experience more or less reflects that of the United States. Mexico is the second largest export market for goods produced in Wisconsin, with 8.7% of all Wisconsin exports heading to Mexico, representing $1.76 billion dollars in exports in 2008.

The Wisconsin Department of Commerce has been represented in Mexico by Mr. Vincent Lencioni since it opened in 1994. Previously, he was Sub-Director of International Commerce and Investment for the American Chamber of Commerce of Mexico, the largest foreign American Chamber of Commerce in the World, and also has work experience in Latin America retail and maquiladora positions. Mr. Lencioni is also a Mexican attorney.

To make use of the services of the Mexico Office, contact Susan Dragotta, susan.dragotta@wisconsin.gov, (262) 691-5147.

Click here to listen to an update from Claudia Tomaselli, Director of Wisconsin’s Trade Promotion Office in Brazil on market conditions there, opportunities for Wisconsin exporters, and strategies for success. This update was recorded at Navigating the Global Marketplace - Opportunities for Northern Wisconsin Businesses, a day-long conference held in Wausau in May during the Trade Promotion Office directors’ annual visit to the state.

Brazil is the world’s fifth largest country with a population of 192 million people. Taking the whole of South America as a measuring stick, Brazil covers over half the surface (8.5 million sq km) of the continent and is home to 51 percent of all South Americans. The population of Brazil reflects a unique blend of African, European, Asian, and indigenous heritages. Brazil has built one of the most diverse societies on earth, in which many cultures and creeds coexist in harmony. Despite its vast size, Brazil is predominantly an urban nation, with 81 percent of the total population living in urban areas. It boasts a diversified, modern industrial infrastructure employing sophisticated technology to produce top-quality goods that are exported all over the world.

Brazil has a highly advanced industrial sector that includes automobiles, steel, aircraft (Embraer, the world’s third largest aircraft manufacturer), petrochemicals, computers, pulp and paper, food processing, plastic, biotechnology, to name the most important. A special note should be made of Brazil’s agribusiness, one of the most developed and dynamic in the world. The agricultural sector is highly advanced with heavy use of state-of-the-art machinery and computer software systems. Brazil ranks #1 globally in the production of coffee, sugar cane, oranges, passion-fruit, and papaya. It is #2 in soybeans, poultry and beef.

Brazil is a world leader in renewable energy technology. A large number of raw materials have been (of raw materials have been) studied, from tallow to over 40 kinds of oleaginous plants like castor plant, soy beans, peanuts, sunflowers, palm and babassu palm. President Lula da Silva’s administration has announced a goal of making bio-diesel the second largest energy source in Brazil, following hydroelectric power. The Brazilian bio-diesel program goal is to reduce the country’s dependence on light crude oil and diesel imports. The program also aims at reducing pollution in urban centers, and at providing incentives to cooperative family farming.

The United States is Brazil’s major trade partner. About one quarter of Brazil’s exports are destined for the US. Brazil is constantly investing in technology, innovation, competitiveness and productivity, offering market opportunities for Wisconsin exports in a variety of sectors. Brazil is also one of the three major US foreign direct investment destinations. In 2008, the United States exported $32.9 billion of goods to Brazil while importing $27.4 billion of goods from this South American nation. Furthermore, Wisconsin exported $420 million of merchandise to Brazil, an export increase of 28.6% in comparison to 2007.

In 2008 exports and imports reached peak marks, resulting in a trade flow of US$ 371.1 billion These figures clearly show the increasing liberalization of the Brazilian economy and its insertion in world trade. The descriptions of the products imported in 2008 show strong correlation with productive investments. Imports of raw materials and industrial supplies and materials represented 48.1% of the total and capital goods imports, 20.7%. Imports of consumer goods increased 40.5%, imports of raw materials and industrial supplies and materials grew by 40.2%, capital goods, 43% and imports of fuel and oil by 56.7%.

Between 2004 and 2007, the Brazilian economy grew an average of 4.4 percent annually. In 2008 the growth rate was of 5.1% in spite of the 0% growth registered in the fourth quarter. The latest international forecasts predict that Brazil's $1.3 trillion economy may shrink in 2009 for the first time in 17 years by 1.3%, but the Brazilian economy is expected to return to grow 2.2% in 2010.

Nevertheless, Brazil's Central Bank believes that the country should beat the “pessimistic” forecasts and that the local economy will grow above the world's average - by 1.8 to 2% - in 2009 yet. The good health of the local financial system, the political stability and the quick government response in terms of fiscal and monetary stimulus are being credited for that.

After all Brazil’s performance is still expected to be better than most Latin American nations that as commodity exporters have been impacted by the overall economic downturn.

The Council of Great Lakes Governors established a trade office in Brazil on July 1, 1997. The office is a cooperative effort of the state governments of (Indiana) New York, Ohio, and Wisconsin to promote exports. The Council hired Tomaselli, Völker & Zulatto Consultoria to represent the four states in Brazil. The office is run by three foreign trade experts: Claudia Tomaselli, Magda Völker, and Vânia Zulatto. All three were associated with the US Foreign Commercial Service in São Paulo and have extensive experience working with US exporters.

To make use of the services of the Brazil Office, contact Susan Dragotta, susan.dragotta@wisconsin.gov, (262) 691-5147.