1. U.S. Commercial Service Briefing by Fred Latuperissa Director U.S. Department of Commerce International Trade Administration U.S. Commercial Service Inland Empire Export Assistance Center

2. U.S. Commercial Service Our mission:  To promote the export of goods & services from the United States, particularly by small- and medium-sized businesses  To represent U.S. business interests internationally  To help U.S. businesses find qualified international partners The U.S. Commercial Service is a program of the U.S. Department of Commerce’s International Trade Administration.

3. International Trade specialists in 108 U.S. cities and more than 150 posts in 80 countries worldwide... Our Network & What it can do for you We can... Locate international buyers, distributors & agents Provide expert help at every stage of the export process Help you to enter new markets faster and more profitably

4. U.S. Trade - 2006 U.S. exports $1.4 trillion California exports $128 billion Inland Empire exports $5billion

5. Total Merchandise Exported U.S. 2000: $782 2005: $904 Brazil 2000: $55 2005: $118 EU 2000: $2,437 2005: $4,001 China 2000: $249 2005: $762 Russia 2000: $106 2005: $244 World 2000:$6,452 2005:$10,431 India 2000: $42 2005: $95

6. Total Merchandise/Product ProductDollars (B) Computer/Electroni cs $44.5 Non-Electrical Machinery 14.8 Transportation 13.5 Chemicals 8.7 Other 46.1 Canada $14 Billion China $10 Billion Europe $22 Billion Mexico $19 Billion California = World’s Sixth Largest Economy

7. National Export Statistics National –February 2007 exports were $124.0 billion, further narrowing the trade deficit thanks to strong exports and easing imports –2006 exports reached a record $1,037.3 billion. By categories, these exports included: –Food, feeds and beverages - $65.9 billion –Industrial supplies and materials - $275.8 billion –Capital goods - $414.0 billion –Automotive vehicles, parts and engines - $107.2 billion –Consumer goods - $129.2 billion California – accounted for 12.3% of total US exports –2006 exports grew 9% from previous year to $127.8 billion –Top export growth destinations included: Mexico (22%), Canada (41%), Japan (26%), China (123%), and South Korea (50%) –Top export product from California: Digital Monolithic Integrated Circuits, accounting for 4.9% of total

8. Inland Empire Export Statistics Inland Empire Region of Southern California –Top industries Agriculture Metal Fabrication Logistics Aircraft Defense –On strong forecasted international trade, the logistics segment of the IE economy is predicted to add 2,100 jobs in 2007 (1.8% growth) –2004 regional exports totaled $3 billion

9. The Status of Free Trade FTAs in force with 14 countries, and several more pending –In 2005, US exports to countries where there was an FTA in effect exceeded $437 billion and accounted for 42 percent of US exports –Trade Promotion Authority (TPA), enacted in 2002, expires June 30 of this year Strong Support for US-Korea FTA –US exports to Korea total: –2006 Goods - $32.5 billion –2005 Services - $10.2 billion US-India Agreement Brings Indian Mangoes to into US –US-India bilateral trade represents one of the world’s fastest growing relationships, expanding at nearly 20% annually Intellectual Property Rights Watch – China and Russia

10. Products & Services Market Research Gold Key Matching Service Trade Counseling & Advocacy International Partner Search China Business Information Center Middle East and North Africa Business Information Center Commercial News USA Catalog Exhibitions

11. Market Research The U.S. Commercial Service Market Research Library contains more than 100,000 country and industry specific market reports, web sites, events, and trade directory listings. Included in the Library: Country Commercial Guides - Prepared annually by U.S. Embassy staff, these guides contain information on the business and economic situation of foreign countries and the political climate as it affects U.S. business and foreign investments.

12. Trade Counseling Our trade specialists in the U.S. work directly with our team of experts overseas in getting you all the information and advice that you need. We can help you:   Determine the best markets for your products & services   Evaluate international competitors   Identify and comply with legal and regulatory issues   Settle disputes   Learn about cultural issues and business protocol

13. The Advocacy Center The U.S. Commercial Service’s Advocacy Center ensures that sales of U.S. products and services have the best possible prospects abroad. Assistance may include: Visits to key foreign officials by high-ranking U.S. officials Visits to key foreign officials by high-ranking U.S. officials Direct support from U.S. officials stationed overseas Direct support from U.S. officials stationed overseas Letters to foreign decision-makers Letters to foreign decision-makers U.S. export credit agency financing support to qualified U.S. companies U.S. export credit agency financing support to qualified U.S. companies Advocacy Center efforts are coordinated with U.S. officials stationed at our embassies around the world and other U.S. government agencies to provide companies with maximum assistance.

14. Gold Key Matching Service  Pre-screened appointment schedule arranged for you before you travel overseas  Customized market and industry briefings with our local trade specialists  Timely and relevant market research  Post-meeting debriefing with our trade specialists and assistance in developing appropriate follow-up strategies  Help with travel, accommodations, interpreter service, and clerical support

15. Invest in America Recent Examples of Investing in America: On February 27, Japanese automaker Toyota Motor Corp. announced that it would build a new manufacturing facility near Tupelo, MS. This $1.3 billion facility is expected to employ 2,000 initially. In 2005, Toyota employed 38,340 in North America. On January 22, AstraZeneca announced it would invest $100 million into its U.S. research and development team based in Waltham, MA. This will bring total research employment at this site to 500, with a focus on anti-infection and cancer treatments. Promoting America as the Investment Destination of Choice: The Invest in America initiative promotes the desirability of investment in the U.S. as a whole by highlighting the advantages of investing in the U.S., and countering the misconceptions some investors may have. The initiative will focus on outreach to the international investment community; coordination with state and local governments engaged in foreign investment promotion; and work as ombudsman in Washington, DC policy community to address business climate concerns. The initiative will also include the creation of a task force within the International Trade Administration charged with the responsibility of educating and coordinating the efforts of the 2,300 ITA employees in offices around the world on inward investment.

16. Invest in America Who Invests in the United States: Foreign companies based in OECD countries account for 94 percent of cumulative foreign direct investment in the United States. The top 5 countries, ranked by cumulative direct investment in the United States were: The United Kingdom - $282.5 billion; Japan - $190.3 billion; Germany - $184.2 billion; The Netherlands - $170.8 billion; Canada - $144.0 billion. Total Inward Investment: The cumulative value of inward direct investment at the end of 2005 was $1.874 trillion. In the first 3 quarters of 2006, direct investment capital inflows totaled $135.2 billion 2005 direct investment capital inflows totaled $109.8 billion; 2004 capital inflows totaled $133.2 billion; 2003 capital inflows totaled $64.0 billion.

17. Invest in America Promotes Employment with High Wages: U.S. subsidiaries of foreign firms employ 5.1 million American workers, support an annual payroll of $324.5 billion, and pay on average 32 percent higher wages than the national average. These U.S. subsidiaries invest heavily in American manufacturing, with 31 percent of these jobs in this sector. Strong Economic Benefits to the U.S. Economy: U.S. subsidiaries of foreign firms account for 19 percent of total U.S. exports of goods ($153.9 billion), and in 2005 reinvested $59 billion of their profits back into the U.S. economy. U.S. subsidiaries also spent $29.9 billion on research and development activities in the United States.

18. Transformational Commercial Diplomacy Initiative · Similar to the State Department’s transformational diplomacy initiative · The first step of a long-term strategic plan · Created to respond to a changing global marketplace in which emerging markets are of increasing importance to future opportunities for U.S. business. · Proposes a strategic shift of some resources from well-developed markets · It enabling the US&FCS to enhance its diplomatic and program support for U.S. business in emerging markets. · Africa, Near East, and South Africa · East Asia Pacific · Europe

19. Saudi Arabia Strategic Relationship Opportunities and Business Prospects

20. Economic Indicators & Incentives Economic Indicators –Largest free market economy in the Near East and North Africa –Expanding domestic market, 23 million and growing at 3.5% annually –Largest oil reserves in the world at 261.8 billion barrels –One-fourth of the total Arab GDP at $310 billion Incentives –No restrictions on foreign exchange –No restrictions on repatriation of capital and profits –No income tax –Privatization fast-moving forward

21. CS Saudi Arabia Best Prospects 2007 1. Oil & Gas 2. Petrochemical 3. Security 4. Power 5. Telecomm / IT 6. Medical Equip 7. Architecture/Const/Eng 8. Railroad Equip/Svs 9. Franchising 10. Automotive (Automobiles & Parts & Services) 11. Aviation (Civil & Defense) 12 Pollution Control & Env Services 13 Mining 14 Services 15 Water Resources /Equip

22. Opportunities (2005-2009) Investments by Sector –Oil and Gas ($69 billion) –Defense and Security ($48.8 billion) –Petrochemicals ($45.3 billion) –Infrastructure ($40.7 billion) –Real Estate ($40 billion) –Mining & Minerals ($11.9 billion) –Electricity & Water ($9.8 billion) –Health & Education ($8 billion) –Transportation ($6.6 billion) –Housing ($2.6 billion)

23. Trade Events Americas Competitiveness Forum (ACF)– 2007 –Hosted by US Secretary of Commerce Carlos Gutierrez in Atlanta from June 11-12 –Networking opportunities with US cabinet members, foreign dignitaries and SCOs 2008 National DEC Conference –Hosted in the Inland Empire, featuring “Travel ’n Trade” 2007 National DEC Conference –Hosted in Tampa, Nov. 7-9, featuring “The Great Debate: The Future of US Trade”

24. How to contact us U.S. Department of Commerce International Trade Administration U.S. Commercial Service 2940 Inland Empire Blvd., Suite 121 Ontario, CA 91764 Tel: 909-466-4134 Fax: 909-466-4140 www.buyusa.gov/inlandempire 1-800-USA-TRADE www.export.gov