Arkansas World Trade Center

OWIT Celebrates 1st Year

2011-11-02T09:34:00.000-07:00

October 14, 2011 marked the first-year anniversary for the Arkansas chapter of the Organization of Women in International Trade (OWIT), a professional organization designed to promote women doing business internationally by providing networking opportunities, export education and global business contacts. OWIT’s Arkansas chapter hosted many of the International board members from as far as Geneva, Switzerland and as close as Bentonville, AR.

OWIT just recently celebrated its 20th anniversary as a national organization which held its first national conference in Washington D.C. Today, OWIT is recognized worldwide for building ongoing trade relationships within and between global communities. OWIT’s organization serves in more than 20 countries within all continents around the globe.

Angela Hofmann, President of OWIT and Arkansas native, hosted the members of the board for an evening with Chef Dane of La Petit Bistro to kick off the weekend. The intimate and flavorful evening gave the ladies a chance to reunite with their current members from various chapters worldwide.

Friday’s luncheon, hosted by the Arkansas World Trade Center (AWTC), gave the OWIT Arkansas chapter the opportunity to have a one-on-one session with guest speaker Luby Ismail. Ismail, the founder and president of Connecting Cultures, a professional service providing presentations and training on communication and work in diverse and multicultural environments, presented her speech on “Cultural Competency”. As a Muslim woman with multiple sclerosis, Ismail spoke about overcoming general bias in the work world and the ways culture plays a major part in everyday encounters. Ismail says that “every encounter is a cultural encounter. Understanding this is the only way you will reach full potential to build bridges and lead businesses that help improve our world.”

The first anniversary celebration of OWIT served as an evening of dinner and entertainment for over fifty of its international members. The event was hosted at the beautiful Compton Gardens and dinner was provided by Catering Concepts of Bentonville, AR. Luby Ismail returned as the guest speaker, and was followed by music from the T. Maechelle quartet. The evening was a great way to end a successful year for OWIT, and served as a wonderful networking experience for each of the members in attendance.

Senator Pryor shares his "Six Point Solution" at the World Trade Center Arkansas

2011-10-26T08:34:00.000-07:00

On October 25th, Senator Mark Pryor visited the World Trade Center Arkansas for a scheduled press conference introducing his “Six Point Solution” towards economic growth and deficit reduction. Senator Pryor’s points brought light to the economic potential for Arkansas through National reform needed in Washington.

In his solution, Pryor called for: the reduction in deficit, expanded market access, the advancement of nanotechnology, expansion of clean and domestic energy and expansion of the production of products through the American Opportunity Act. Within each area of the six point plan, Senator Pryor highlighted what the individual change could do for Arkansas’ job growth. ‘’Lifting export restrictions in Cuba alone could potentially generate 480 new jobs for Arkansans”, says Pryor. The Senator’s proposal for advancement of nanotechnology is estimated to bring in $1 trillion by 2015. This technology would help support science parks in Fayetteville and Little Rock.

What would the reductions in budget be able to do for our national deficit? Senator Pryor’s proposed cuts show just how much can be saved through a few of the following Acts:

Government Excess Prevention Act (Saves $8 b.) http://www.govtrack.us/congress/bill.xpd?bill=s112-477
Federal Contractors Accountability Act (Saves $1.5 b.)http://www.govtrack.us/congress/bill.xpd?bill=s112-478
Federal Real Property Disposal Act (Saves $1 b.) http://www.govtrack.us/congress/bill.xpd?bill=s112-479
Broadcast Savings Act (Saves $30m./year) http://www.govtrack.us/congress/bill.xpd?bill=s112-476
Prisoner Fraud Reduction Act (Saves $134m./year) http://www.govtrack.us/congress/bill.xpd?bill=s112-1367

Within all of the reform changes proposed by Pryor, the Arkansas Senator emphasized the solutions needed to invest in Arkansas’ infrastructure. “Now is the time to make major investments’’, says Pryor. “Modernizing our roads, rails, waterways and runways will create good-paying jobs in the near-term, while increasing productivity and expanding our exports in the long-term.”

World Trade Center Arkansas Brazil Trade Mission: October 9-12

2011-09-27T10:02:00.000-07:00

The below story was included in University of Arkansas Newswire, September 29.

World Trade Center Arkansas Goes South Of Equator in October

On October 9-14, the World Trade Center Arkansas will lead a trade mission to Brazil and attend the 42nd World Trade Center Association General Assembly.

The WTC Arkansas professionals leading the trade mission are: Dan Hendrix, President and CEO; Herbert Morales, Director of Latin America Trade Development; Boon Tan, Director of Asia Trade Development; and Natalia Moreno, Latin America Trade Development Intern.

The trade mission delegation will include corporate representatives, professionals and educators. Businesses represented will include Rebounces, LLC , HP Engineering, and FRI Consulting. Dr. Andrew Horowitz, Professor of Economics at Sam. M. Walton College of Business and two Walton college students will also accompany the trade delegation.

Brazil is now well known in the business world as a member of the fast- growing BRICS (Brazil, Russia, India, and China). According to the World Economic Forum, Brazil went up 5 positions in the rank for global competitiveness, giving it a current rank of 53 out of 142 countries.

Adding to this strategically competitive position, Brazil has been scheduled to host the FIFA World Cup in 2014 and the 2016 Olympic Games. The FIFA World Cup 2014 will held in twelve of Brazil’s cities: Belo Horizonte, Brasilia, Cuiaba, Curitiba, Fortaleza, Manaus, Natal, Porto Alegre, Recife, Rio de Janeiro, Salvador, and Sao Paulo.

Consequently, Brazil is undertaking many infrastructure projects in preparation for these events.. The Brazilian National Development Bank programs assure that projects related to the World Cup will be built with particular emphasis on power efficiency and environmental sustainability.

Current projects underway include, but are not limited to the following:

· Olympic Village Clinic (three state-of-the art hospitals)
· Modernizing and enlarging two airport terminals
· Highway widening to accommodate “Olympic Lanes”
· Revitalization of the Port of Rio
· High speed transportation from Rio to Sao Paulo

· Green building initiatives
· Balneariu Camburiu Shopping Complex expansion
· Water sanitation
· Numerous stadiums and hotels

These projects provide ideal opportunities for U.S. companies in the construction, security technology, accommodation, transportation, and service sectors. Nevertheless, challenges to foreign investment still exist in the form of inflexible labor laws, local content requirements and a complex tax system. World Trade Centers, Chambers of Commerce, and commercial services can aid in navigating these complexities, as well assisting with research and networking connections.

The World Trade Center Arkansas’ October trade mission will include visits to the cities of Sao Paulo and Belo Horizonte in the state of Minas Gerais, located in the southeastern region of Brazil. WTC Arkansas will provide one-on-one business matchmaking services and networking opportunities for the Arkansas delegation.

In addition, the delegation will have the opportunity of attending the 42nd World Trade Center Association General Assembly at which world trade center delegations from around the world meet, providing additional global resources, investment prospects and trade opportunities.

~submitted by Mary Otilia Rash, Marketing and Communications Intern

Trade Trends: Shifts in the Global Apparel Industry?

2011-08-24T08:57:00.000-07:00

The average American consumer is probably well familiarized with China's dominance

in the apparel industry. According to the August 3, 2011 edition of Women's Wear Daily, little has changed in this trend statistically, as China still makes up 40.9 percent of U.S apparel imports.

"I think there is this misnomer out there that the Western Hemisphere can provide only T-shirts and socks", said Kim Glas, the deputy assis

tant secretary for textiles and apparel at the Commerce Department.

However, this perception seems poised to change. U.S. textiles exports alone increased by 20 % last year, and investment for apparel and footwear appears to be increasingly directed to the Western Hemisphere.

Obama administration officials seem to be taking an active role in diversifying and expanding the U.S. apparel industry as a viable alternative to the rising costs in China. From August 21 to August 24, the Sourcing in the Americas summit was held in Las Vegas. This inaugural Americas summit was the result of a collaborative effort between the U.S. Commerce department and numerous trade associations and retailers. The summit presents and explains aspects of supply chain management and how sourcing domestically or closer to the U.S. benefits retailers.

America's attempts to diversify and curtail imports may be in turn, effecting the health of the Mexican apparel industry. Already Mexico's textiles business is bracing for lower growth in 2011. In addition, the Mexican government is planning to cut import duties to 30 percent ( down from 80 percent) as part of various trade negotiations with China.

"We need to convince our government that opening this new window of opportunity to China could threaten the survival of many Mexican companies", Ramos Flores warned.

E Commerce and Online Counterfeiters

2011-08-15T11:38:00.000-07:00

According to the June 14, 2011 edition of Women’s Wear Daily, the well-known Pakistan based global ecommerce site Tradekey, is facing a lawsuit by four brands of the leading luxury goods group Compagne Financiere Richémont (Chloe SAS, Alfred Dunhill, Montblanc Simplo, and Officine Penerai AG). The lawsuit alleges that the firm knowingly sold counterfeit replicas of the four Richémont brands through unauthorized sellers manufacturers, suppliers, and distributors on its website. Furthermore, the complaint also alleges that Tradekey.com has “designed itself for counterfeiters” by encouraging and attracting the sale of “replica” goods and bogus merchandise.

Rob Holmes, CEO of IPCybercrime.com. LLC led Richemont’s investigation and testified in court. After paying only $3,000 to become a Goldkey member, Holmes was contacted by a Tradekey representative who helped him sell his “product” listings using certain keywords and would enhance his chances of being located by those searching for fake Chloe bags.
For example, one of his Chloe ads stated ‘We work directly with the #1 factory in China for perfect mirror quality handbags.” Another one openly stated. “The quality is mirror image and looks like the real thing!”

Tradekey.com, founded six years ago, has a page rank of eight out of ten, according to google. The website claims it sells “millions of goods in over 240 countries”, handles over 10 million visitors, serves over 5 million members, and receives over 32 million page views a month.
While luxury goods are often cautious about fighting counterfeit battles, Tradekey is unique in that it is a business-to-business site, and, unlike eBay, has no VERO (verified rights owners program) to safeguard customers from fraud.

The alleged Tradekey lawsuit illustrates the pervasiveness of counterfeit activity. According to the Customs and Border Protection Bureau and the Customs and Immigration Bureau – in fiscal year 2009, there were about 15,000 seizures in the U.S. with a combined value of value of about $261 million. Of that total, about $205 million were products imported from China.

Methods to avoid counterfeit items include being aware of the products' country of origin and keeping up with recalls. However, possibly the single best way to avoid unwittingly buying counterfeit items is to buy from only licensed distributors of the product.

WTC Arkansas Trade Mission to Korea

2011-07-15T11:09:00.000-07:00

Following up from our last blog post about the effects of the Korea-U.S. Free Trade Agreement, our Director of Asia Trade Development, Mr. Boon Tan, has recently returned from an exploratory trade mission to Korea, accompanied by the Arkansas Economic Development Commission (AEDC) and the Arkansas Farm Bureau. The trade mission, lasting from June 21 to July 10, focused on building a strategic trade relationship between Arkansas and Korea and included many visits to various Korean companies for the purposes of exploring future beneficial trade opportunities for Arkansas business.

Boon Tan, Director of Asia Trade Development (center) visits World Trade Center Suwon, Korea to network. Suwon is a major educational center in South Korea as well as the headquarters location of Samsung Electronics.

Randy Veach, president of Arkansas Farm Bureau and his delegation meet with Ted Taeho Lee - Director General for Free Trade Agreement Policy, Korea Ministry of Foreign Affairs and Trade.

Boon Tan pays a visit to EMart in Seoul, Korea. EMart is the largest retailer in Korea and the first Korea retailer to advance into China.

Boon Tan viewing EMart grocery products

Boon visited Korean Trade Investment Promotion Agency (KOTRA). From left to right: Kim, Hyun Tae - Director Consumer Goods Industry Marketing Team, Boon Tan, Yoon, Jae Chun - Director General Overseas Research Department and Lee Jeong Seon - Manager.

Korea-US FTA: Implications for Arkansas

2011-07-11T10:42:00.001-07:00

Negotiations for the Korea-U.S. Free Trade Agreement (KORUS FTA) have been underway since 2007, when President George W. Bush signed the agreement into existence.Since then, the Obama administration has taken proactive measures to ensure the agreement's final passage, having visited South Korea in 2009.

Once confirmed, the agreement will the first Free Trade Agreement ever signed between the U.S. and a North Asian country. In a White House press release from December of last year, President Obama stated of the KORUS FTA, "We are strengthening our ability to create and defend manufacturing jobs in the United States; increasing exports of agricultural products for American farmers and ranchers; and opening Korea’s services market to American companies."

Results from the KORUS FTA could be dramatic. According to the U.S. International Trade Commission, estimates indicate that the reduction of Korean tariffs and tariff-rate quotas on goods alone would add $10 billion to $12 billion to annual U.S. Gross Domestic Product and around $10 billion to annual merchandise exports to Korea.

Under the FTA, nearly 95 percent of bilateral trade in consumer and industrial products would become duty free within three years of the date the FTA enters into force, and most remaining tariffs would be eliminated within 10 years.

Yet, what of the implications for Arkansas? As detailed in our last blog post, Arkansas has benefited from steady increase in strong export shipments of merchandise. In 2009 exports totaled $5.3 billion; this was a gain of 36 percent since 2005, and Arkansas has almost doubled the U.S. goods exports over the same period.

Recent Arkansas trade statistics by category include the following below:

Chemicals- 51%
Food Manufactures- 15%
Metal Fabrication- 12%
Electrical Equipment,
Appliance and Components- 6%
All Other Categories- 18%

The effects of KORUS FTA include the elimination of consumer and industrial tariffs within five years, as well as portions of the U.S. agricultural exports tariffs immediately on entry. Consequently Arkansas is expected to see extensive growth in Chemical Manufacturing, Processed Foods and Agriculture, particularly soybeans, poultry and cotton.

Who Exports From Arkansas?

2011-06-29T10:43:00.001-07:00

Wal-Mart in China. McDonalds in India. Globalization is a byword these days: inescapably present in media, the classroom, and popular culture. Yet the vital life-force behind globalization—international trade—is often considered a phrase that belongs exclusively to the glamorous world of multimillion dollar corporate transactions. Exporting may seem far removed from a small business operating in the Midwest, yet a look at statistics gives interesting insights that possibly prove the opposite. While, as a percentage, small and medium sized businesses account for only 30% of total U.S. export value, they account for 97% of the country’s actual exporters. The trend is rapidly increasing as more and more small business owners find that the benefits increased sales, market share, and diversification of risk soon outweigh the initial hurdle of capital, while the opening up of free trade agreements in Australia, Chile, Singapore, Jordan, Israel, Canada, Mexico, and Central America as well as elsewhere are creating more opportunities than ever before. And what about Arkansas? Many are surprised to even learn of the existence of a World Trade Center in Arkansas. Yet constantly we are kept busy helping businesses--many of them SMEs-achieve their goals through our trade development and market research services.

Below are some facts and statistics about Arkansas exports from the U.S. Department of Commerce:

Exports sustain over a thousand Arkansas businesses.

• A total of 1,583 companies exported goods from Arkansas locations in 2008.
• Of those, 1,218 (77 percent) were small and medium-sized enterprises with fewer than 500 employees.
• Small and medium-sized firms generated 17 percent of Arkansas' total exports of merchandise in 2008.

Arkansas depends on world markets.

• Arkansas's export shipments of merchandise in 2010 totaled $5.2 billion.

• The state's largest market was Canada. Arkansas posted merchandise exports of $1.4 billion to Canada in 2010, 26 percent of the state’s total merchandise exports.

• Canada was followed by Mexico ($544 million), China ($336 million), Japan ($334 million), and the United Kingdom ($168 million).

Exports support jobs for Arkansas workers.

• Export-supported jobs linked to manufacturing account for an estimated 5.3 percent of Arkansas’ total private-sector employment.
• One-seventh (14.4 percent) of all manufacturing workers in Arkansas depend on exports for their jobs.

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Check back frequently for news updates, trade perspectives, and article about how the World Trade Center Arkansas helps Arkansas businesses of all sizes achieve their trade related goals, and follow us on Facebook and Twitter for inside news updates and happenings!

Our New and Revised Blog!

2011-05-26T13:53:00.000-07:00

Welcome to the World Trade Center Arkansas' newly revised blog! Our blog will now focus on and explore specific topics related to international trade for Arkansas business.

We will have regular special interest blog posts twice a month-- so please check back periodically for informative, useful articles and discussions that are specifically related to the exporting process, and feel free to leave comments and suggestions!