1. Workshop on Trade Representation Trade Related Technical Assistance for SRE Peter Bennett Trade Development Consultant

2. Mexico: SREIntroduction2.2. Structure of workshop What this workshop is about 1.Managing a TPO Export promotion and FDI 2.Strategic and policy issues Senior decision makers – influence strategy / policy 3.Contributors Exporters Government Policy Makers Associations 4.ITC’s Manual for Trade Reps 5.Actual work of a trade rep 6.Question; challenge; disagree; debate 7.Flexible

3. Mexico: SREIntroduction3.3. Terminology TPO = service  SRE -Secretaría de Relaciones Exteriores  Proméxico  Others Trade / commercial diplomacy  Bi-lateral trade issues Trade Promotion

4. Mexico: SREIntroduction4.4. Characteristics - 1 Don’t sell anything and don’t manufacture  Exception is consultancy services – special case.  Don’t generate exports Career job  Difficult to dip-in and dip-out  Inexperience quickly detected by industry A knowledge driven industry  Knowledge, information, practice Problem with a knowledge industry  Strong central structure – work against it  Rigid hierarchy – work against it  Best people work with clients

5. Mexico: SREIntroduction5.5. Characteristics - 2 TPO / TSI can have a big impact  Why does every country try to develop one? Big changes caused by  Access to info  Speed  Competition  Globalisation Very expensive service to provide TPOs complex to manage

6. Mexico: SREIntroduction6.6. A TPO - The variables Money, personnel, physical assets, clients and markets Simple  Provider of information  No analysis, No intellectual input, No risk and low impact  Default – tend to revert to this position Complex  Intellectual input  Analysis, judgement, opinion  Sector / client specific / focus on winners  High risk and high impact Holistic approach  Complex Infrastructural issue  Provide advice on all aspects effecting successful exporting

7. Mexico: SREIntroduction7.7. Settings of variables You make the decision Combination will be unique In process – difficult decisions  Services  Client selection  Personnel  Management / support structure  Agreement way different parts relate to each other

8. Mexico: SREIntroduction8.8. Things go wrong TPOs spends $m – over x years  Results  Impact  Return on investment  ITC Consultancy Busy and engaged in many activities Dozens of offices and 100’s staff. Mismatch between policy and ability to deliver

9. Mexico: SREIntroduction9.9. Added difficulty Political issues – involved in everything you do Bureaucracy – fact of life Agencies / institutions guarding patch Many stakeholders  Government / Ministry  State Governments  Exporters  Board  Industry associations  Staff

10. Mexico: SREIntroduction10. Successful TPOs No two TPOs are the same  Setting of variables different Flat management structure  Best people work with industry. Career specialists. Very close relationship with industry Respected and trusted by industry  Clearly identified corporate identity Clearly defined objectives & work programmes Very quick at doing things / speed Continuous analysis and review  What can we do better?  Are we doing the right things?

11. Mexico: SREIntroduction11. The key to success 1.Develop services  Effective in meeting the needs of clients  To succeed: Consultation with industry must be very high 2.Deliver these services within a conventional government organisational structure

12. Mexico: SREIntroduction12. Strategic issues 1.* Who are the clients? Who do you work for? 2.* What markets do you concentrate on? Priority markets? Where do you put your best people? 3.* What services are you going to provide? How do you design a service? Easy to do low grade work! 4.How do you measure performance? 5.Work programmes – where do they come from?

13. Mexico: SREIntroduction13. Who are our clients? Do you give the same level of service to all clients? Catagorise clients – how?  National export strategy Select companies that you can impact on Different levels of service for different categories Resolve issues – clarity for trade reps Export targets for categories of client Use this as a measure of performance Keep everyone happy – how. Use technology.

14. Mexico: SREIntroduction14. What markets? Key policy issue – where do you put resources? National export strategy – priority markets Balance between markets and new markets Objective – diversify? Some markets – multiple trade offices Use consultants in remote regions

15. Mexico: SREIntroduction15. Range of services 1.The range is determined by your client base  Consult with the clients. Ask them!  Different classes of client = different levels of service  Big company vs. small company 2.Your capability Information provider! Identifying distribution channels, target customers and buyers for clients 3.Customised in-market information, itineraries and briefings 4.Access to external market expertise and professional service

16. Mexico: SREIntroduction16. Work programmes for a Trade Rep Must be derived from key sectors / clients Key sectors / clients are defined in the National Export Strategy Head Office works with a sector / client to define the work. Must develop techniques to reduce waste from:  Non priority clients / sectors  Local market enquiries – judgement call  Unavoidable work for other stakeholders  Use technology