The World Is Open For Business. Yours. An Overview of the U.S. Commercial Service

Why Should You Export? 95% of the world’s consumers are outside of the U.S. Exporting helps to diversify your client base and take advantage of regional growth If you are not exporting, it’s highly likely your competitors are selling abroad or will be soon Free trade agreements, the Internet, improved transportation, and Government assistance OpportunityDiversificationCompetition Business Facilitation

Economic Impacts of Exporting Exports help diversify the U.S. economy U.S. manufactured exports support 6,000,000 American jobs Trade generates $9,000 more in purchasing power for the average American family Companies that export are 8.5% less likely to go out of business Jobs related to exports pay 15% more

Market Diversification Extend product life cycles Counter unstable economic markets Ability to maintain production year-round o Seasonal differences o Consistent sales

Exporters Are Small Business 97% of U.S. exporters are SMEs with < 500 employees 75% of exporters have < 20 employees 7 in 10 new U.S. jobs are created by small businesses

Exports & Hawaii

Hawaii’s Top Exports Tourism Services Education & Training Environmental Technologies Cosmetics / Skin Care Agriculture & Processed Foods

Hawaii Exports Based on Origin of Movement HTSDescription US Dollars% Share%Δ 08/ / Beverages42,204,85337,569, Cocoa15,944,23216,599, Spices/Coffee And Tea7,304,6777,018, Aluminum7,361,0906,900, Misc Grain/Seed/Fruit3,805,8255,133, Preserved Food4,553,2345,068, Cereals1,486,2063,281, Leathr Art;Saddlry;Bags2,862,8852,978, Toys And Sports Equipmt2,413,3362,872, Perfumery/Cosmetic/Etc2,720,2092,654, Arms And Ammunition5,645,9671,850, Pharmaceutical Products1,852,5561,761, Clocks And Watches1,010,9971,681, Musical Instruments2,648,1931,633, Hawaii’s Top Exports

Hawaii Export: Coffee Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes RankReporting Country United States Dollars Reporting Total14,297,492,23517,053,983,357 1Germany2,346,555,3802,780,324,135 2France922,715,7411,135,345,616 3 Italy871,668,3721,091,582,381 4Japan990,582,0991,007,536,566 5Belgium576,881,197616,942,661 6Canada633,235,711681,828,070 7Spain485,158,540615,529,732 8United Kingdom420,201,477481,947,242 9Switzerland252,695,531326,401,485 10Austria267,985,342386,423,340 Who is buying? Top Global Importers

Hawaii Export: Coffee Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes Ranking Partner Country US Dollar% Change /2007 World544,540,906617,324, Canada402,913,519455,420, Japan44,294,19655,704, Russia233,57023,024, Singapore11,451,80713,562, China10,656,15313,014, Germany35,747,26112,714, South Korea5,923,3399,627, Mexico3,355,9825,678, Taiwan1,996,2883,645, Bermuda1,581,9791,694, Where is U.S. coffee going? Top U.S. exports

Hawaii Export: Coffee Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes US Dollar% Change RankCountry /2007 World 7,117,4656,966, Japan 5,530,9685,050, Sweden 1,212,5841,244, Canada 91,023317, Germany 204,835249, South Korea 28,83849, United Kingdom 018,0000 7Taiwan 32,90110, Australia 12,56610, Finland 09, France 04,8000 Where is Hawaii coffee going? Top HI exports

Japan IndiaAustraliaMalaysiaChinaSouth Korea Hawaii’s Best Export Markets Hong Kong

Leveraging Free Trade Agreements

Free Trade Agreements FTAs help open foreign markets o Reduced trade barriers (tariffs, quotas, etc.) o Strengthen legal protections Promote fair competition Address trade issues Bring costs down for U.S. consumers

Free Trade Agreements Topics of FTA Negotiations Opening Sectors to Competition Improving IPR Protections Enhancing Labor Rights Dispute Settlement Environmental Standards Government Procurement Enhancing Investment Rules Improving Customs Facilitation

Free Trade Agreements

ISRAELJORDAN

Free Trade Agreements Country2007 MMUSD2008 MMUSDPercent Change NAFTA332,499353, % Canada213,118222, % Mexico119,381131, % CAFTA-DR21,27423, % Costa Rica4,2245, % Dominican Rep5,7936, % Guatemala3,8724, % Honduras4,3274, % Nicaragua8461, % El Salvador2,2092, % Australia 17,91620, % Bahrain % Chile 7,61011, % Israel 9,94010, % Jordan % Morocco 1,3331, % Oman 1,0341, % Peru 3,7645, % Singapore 23,57625, % Total420,348456, %

Free Trade Agreements U.S - Korea FTA, Pending Model for new Asia FTAs 95% of U.S. consumer & industrial products will enter duty-free 67% of agricultural exports will be immediately duty-free Remaining tariffs eliminated <10 years Hawaii: agricultural / food products, tourism

Going Global Connecting with International Markets

Are You Export Ready? Domestic Success? Production Capacity? Financial Resources? Management Commitment? International Plan with Goals? Know-how? (shipping & methods of payment)

Common Export Mistakes Lack of Export Business Plan Low commitment to exporting Neglecting export customers for local customers Reliance on inadequate partnerships Failure to modify products & methods to accommodate foreign regulations and preferences

Determine Product Potential Examine Domestic Market Success Assess Unique or Important Product Features International Market Research Where are International Hits Coming from on your Website? Target markets? Where are Your Competitors Selling?

Develop An Export Strategy Be PRO-ACTIVE & REALISTIC about your ability to expand Define your resource limitations (money, personnel, and time) Identify a few target markets Evaluate target markets, customers, distribution channels Evaluate future profits & opportunities to expand business Develop an entry strategy for each market Focus Your Efforts!

Basic Guide to Exporting How to identify the best markets Financing export transactions Best methods to handle orders and shipments Case studies of successes Sources of free or low-cost export counseling $

An Overview of the U.S. Commercial Service How the U.S. Government Can Help

U.S. Commercial Service Creating Prosperity Through Global Trade A global network in more than 80 countries of the best trade professionals in the world Our global presence and international marketing expertise helps U.S. companies compete & win in global markets Our Goal - promote economic prosperity, enhance job creation, and protect U.S. commercial interests abroad

Our Services Four Ways to Grow Your International Sales Market Research Trade Events International Partners Consulting & Advocacy

Our Services: Market Research Market Research Library (FREE) – over 100,000 country and industry-specific market reports, web sites, events, and trade directory listings Country Commercial Guides (FREE) – annual U.S. Embassy reports on the business, economic, and political environment as it affects U.S. business and foreign investments Customized Market Research – personalized report prepared specifically for your company with information that answers your specific international business questions * Find these reports and more at Target the Best Markets with Our World Class Research

Our Services: Trade Events Trade Missions – face-to-face meetings with pre-screened partners, country briefings, logistical support, and counseling International Buyer Program – brings thousands of foreign buyers to U.S. trade shows each year Certified Trade Fairs – the best international trade shows with access to thousands of buyers and pre-screened matching Single Company Promotion – pre-screened invitations to help you promote your products/services Promote Your Product or Service to Pre-Screened Buyers

Our Services: Find a Partner Gold Key Service – one-on-one meetings with pre-screened contacts in your desired market International Partner Search – a detailed list of potential partners interested in your product/service International Company Profile – low-cost due diligence and credit check on buyers & distributors Featured U.S. Exporter (FUSE) – on-line listing featuring your company in the market of your choice Commercial News USA – official U.S. trade magazine that promotes your product or service to over 400,000 international buyers Meet the Best Buyers, Distributors, and Agents

Our Services: Consulting Counseling – your local office that can help you with your export strategy and obtaining financing Resolve Trade Issues – we can help resolve regulatory hurdles and recover payment Platinum Key Service – customized, long-term support to help you achieve your business goals Advocacy – U.S. diplomatic assistance to help level the playing field for your business Get Personalized Advice at Every Stage of Exporting

Leverage Our Additional Resources – Your U.S. Trade Portal Export basics, market research, HS & schedule B numbers Information on international finance, logistics, and standards – FREE export tutorials Trade Information Center USA.TRADE Open Monday through Friday until 6pm EST / 12pm Hawaii time Get immediate answers to your trade questions Information on tariffs & duties, customs procedures, legal requirements and standards, government assistance programs Business Information Centers China: India: Middle East / North Africa:

Note: A small company is defined as employing 500 employees or less. Fees vary for Trade Missions, Single Company Promotions, and the Platinum Key Service. Cost of Services Our Services Small Company New Exporter Discount Large Company Local CounselingFREE Market Research ReportsFREE Country Commercial GuidesFREE Export.gov InformationFREE USA.TRADEFREE Gold Key (Matchmaking)$700$350$2,300 International Company Profile (Due Diligence)$600$350$900 International Partner Search (Prequalified contacts)$550$350$1,400 Featured U.S. Exporter (Overseas web promotion)$150$75$300 Commercial News USA (global print advertising)

Our Strategic Partners Our Partners help you export by: Conducting joint outreach events Leveraging training and education Reaching exporters through communication and marketing Leading trade missions Providing global contacts

What Our Clients Have To Say… “Using the U.S. Commercial Service’s foreign market research, we now export to more than 70 countries and have received a presidential award for our export success.” Ampro Electronics, Los Angeles, CA “Trade shows supported by the U.S. Commercial Service are a great way to reach the right foreign buyers.” Artcrete, Natchitoches, LA “Thanks to support from trade specialists at the U.S. Embassy, we not only saved jobs, but continue to increase our exports.” Ford Meter Box, Wabash, IN “In only six months, local trade specialists helped me get quality distributors covering 13 foreign markets.” Excel Holdings, Leesburg, VA

Mahalo! John Holman, Director Hawaii Export Assistance Center or USA.TRADE