Facilitating Business INVESTMENT IN The United States Prepared for the Southern Economic Development Council Annual Conference August 1, 2016 Keida Ackerman Senior International Investment Specialist SelectUSA | International Trade Administration Desk (202) 482-0850 | Mobile (202) 257-7254 keida.ackerman@trade.gov | www.selectusa.gov We deliver results SelectUSA has directly assisted with attracting $22.5 billion in client-verified investments to the USA!!

Agenda What is SelectUSA? What does SelectUSA do? How do we help EDOs? What (Data) Tools do we use? How do I recruit FDI? What criteria drive FDI projects? What events do you organize?

What is SelectUSA? SelectUSA’s mission is to promote and facilitate global business investment (a.k.a. Foreign Direct Investment, FDI) in the United States We are the single point of contact – housed at the U.S. Department of Commerce – at the national level for international companies to invest in the United States. “ The United States reaffirms our open investment policy, a commitment to treat all investors in a fair and equitable manner under the law.” President Barack Obama June 20, 2011

What does SelectUSA do? SelectUSA serves two primary clients: foreign investors and U.S. economic development organizations (EDOs). We help investors to understand the U.S. market to support investment and business decisions. We help EDOs to think about incorporating FDI into economic development strategies Information, Research & Counseling on business investment in the United States and developing an FDI strategy In-Market Investment Promotion for EDOs to market their locations to targeted investor audiences (Road Shows + Single Location Promotions, SLPs) Ombudsman Assistance* to assist with questions or concerns about U.S. federal rules and regulations Advocacy* to promote the United States in international competition (1 U.S. locations versus at least 1 non-U.S. location) Additional Services: retention/expansion of current FDI projects, forming partnerships with local universities, leveraging our domestic contacts, developing information-rich websites About Statebook.

How do we help EDOs? We help EDOs to understand the contribution FDI can make to local economies. We provide insight into FDI trends and patterns. We assist with developing FDI attraction strategies or updating current plans. We explain the needs of investors. We organize in-market promotion programs Facilitated Investment Missions (a.k.a. Road Shows) FCS-led program providing multiple participating EDOs a suite of fee-base services Single Location Promotions (SLPs) Custom events for single EDOs. Led by FCS posts. Ex 1. SelectUSA brief new leadership at state EDO on the contribution of FDI to economic development strategies, reviewed a draft FDI attraction strategy Ex 2. SelectUSA spoke at a state’s annual conference for economic developers Ex 3. SelectUSA provided Advocacy assistance to a U.S. location vying for an investment project with a foreign country. The company selected the U.S. location Ex 4. SelectUSA provided matchmaking services to EDOs attending a leading manufacturing trade show, connecting them to potential investors About Statebook.

What (Data) Tools do we use? Description URL Bureau of Economic Analysis (BEA) Promotes better understanding of U.S. economy via timely, relevant, accurate economic accounts data. A leading statistical agency. Data covers FDI into USA. http://bea.gov/ http://www.bea.gov/iTable/index_MNC.cfm State Business Incentives Database (C2ER) Database created by Council for Community and Economic Research (C2ER). Encompasses 2,000 programs from all 50 states, DC, federal agencies. Gives economic developers, business development finance professionals, and economic researchers one-stop resource for searching and comparing state incentive programs. http://selectusa.stateincentives.org/?referrer=selectusa Cluster Mapping National economic initiative that provides over 50 million open data records on industry clusters and regional business environments in the United States to promote economic growth and national competitiveness. Project led by Harvard Business School with U.S. Department of Commerce. http://www.clustermapping.us/ StateBook Subscription-based database supplies data relevant to site selection decisions . Data points include: demographics, taxes, education levels, average wages, utility costs, quality-of-life (museums, golf courses) https://statebook.com/ U.N. Conference on Trade + Development (UNCTAD) UN body responsible for dealing with development issues, esp. international trade . Statistics cover international/bilateral FDI data http://unctad.org/en/Pages/Home.aspx http://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?sRF_ActivePath=p,5&sRF_Expanded=,p,5 fDi Markets Subscription-based database provides comprehensive data on cross-border greenfield investments, covering all countries and sectors.. http://www.fdimarkets.com/ Assess Costs Everywhere Database provides manufacturers with top reasons for investing/sourcing in USA. With its analytic framework, links to public and private resources, and case studies, ACE available to help businesses assess total costs more accurately and enable informed decision-making. http://acetool.commerce.gov/

NEW!! SelectUSA Stats Tool SelectUSA Stats is a FDI Data Visualization Tool Interactive Dashboards Public Data Free Online Tool FDI Data Includes Stock / Flow Jobs / Exports / R&D & more! Contains FDI Data by… Year(s) Source Market(s) Destination State(s) https://www.selectusa.gov/selectusa-stats

How do I recruit FDI? Ask the Right Questions! What are your assets? What comparative advantages exist relative to your neighbors? What global companies are in your region? Do you have a relationship and understand their needs? Have you analyzed where investment/exports come from and go to? What assets are in place to attract and retain global companies? Have you mapped gaps in the local supply chain? What are the “Top 10” reasons to invest in your location? Can you recap the fundamental elements to do business in your location? Deliver Outstanding Customer Service/Investor Care Deliver quick response time to inquiries (including from SelectUSA) Create standardized framework for managing cases Establish metrics to track clients, successes, improvement Open communication with decision makers at state/local levels Be prepared/willing to hand-hold investor throughout process

What criteria drive FDI projects? Business Needs dominate due diligence reviews Proximity to Customers/Consumers Proximity to Suppliers Access to skilled workforce Operating Costs Energy prices Utilities Inputs (raw materials/components) Logistics (supply chains, ports, modal centers) Taxes (Federal > State/Local) Rule of Law (Predictability + Stability) Incentives (“icing on the FDI cake”) Core FDI Criteria: Building the FDI “Cake” Business-Friendly Atmosphere Tone from the Top (Governor’s Office) All Resources Working Together Prompt, responsive, attentive customer service Streamlined (seamless) treatment of permits, requirements, regulations Public sector + private sector champions Business-Friendly/Rational Policies + Legislation + Regulations Local content requirements? Tax reforms/provisions that disadvantage U.S. subsidiaries? Burdensome environmental obligations? Higher tax rates, vs neighbors? Unions / right to work Employer/Employee rights + responsibilities One-Stop Shopping Attractive, persuasive, data-driven Informational + Promotional Materials

What events do you organize? Past Events December 1-4 Brazil Road Show February 1-5 Japan Road Show February 24 US-Turkey Investment Summit April 25-29 Hannover Messe (U.S. Partner Country) May 18-19 French-American Business Week June 19-21 SelectUSA Investment Summit Future Events Sept. 9 Trade Winds: Latin America (SelectUSA Seminar) (Chile) Sept. 28-30 Taiwan Road Show (4 cities) Winter 2016 SelectUSA Seminar (Montreal) Nov. 28 – Dec. 2 Brazil Road Show (3 cities) February 17-26 Toronto Auto Show (SelectUSA seminar) March 2017 India Road Show (cities TBD) Visit http://selectusa.commerce.gov/upcoming-events for details

2016 SelectUSA Investment Summit WASHINGTON, DC | JUNE 19-21, 2016 2,500+ participants from 70 international markets 600+ EDO representatives 147,000 total tracked, on-site interactions President Obama 8 Cabinet Secretaries, 4 Governors 2017 Summit: June 18-20 at Gaylord National Resort & Convention Center, National Harbor, Maryland