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| George Martinez Phil Borchmann |
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A whole new business world awaits companies and entrepreneurs who venture into international trade; certain foreign markets simply diversify revenue sources. But tapping into overseas opportunities can be daunting, considering differences in culture, business practices, laws and currency. That's where George Martinez and his staff at the DOC's Export Assistance Center come in. Tampa-based Martinez works with dozens of Southwest Florida businesses, helping them take advantage of far-flung markets and the bounty they can bring. 1. What free-trade opportunities exist for Southwest Florida businesses? With the Central American Free Trade Agreement (CAFTA), for instance, there is a whole host of industries involved. One is the aircraft industry. Once CAFTA becomes effective, folks in the aircraft business can immediately enjoy zero duties. We negotiate decreases in duties for companies in building products and materials for construction, and we have quite a few of those. About 55 percent of those products will have zero duties. Other industries are electronic instrumentation and medical devices. Ninety-nine percent of those products from those sectors will be duty-free. 2. What are the benefits? Trade can grow your business if you have a good export trade department and put time and effort in setting that up. For example, if you have apparel that sells well here in winter, you can promote those products in countries like the Philippines, where the seasons are reversed. U.S. companies that export can learn more about other ways of doing business and cultures. Perhaps there are other technologies overseas that will complement yours. And one of the most important benefits is that exporting creates jobs. It's great for the local economy. 3. How does the department help with free trade and exports? We use a whole range of data in our market research library to help companies find out where the best markets are for their products. We also help companies with strategy. Do I go with a distributor or send directly to end users, for instance? Once a strategy is decided, we help companies find those business partners, distributors, agents, licensees or end users. We have great connections and leverage with companies all over the world. We also promote products through trade shows and trade missions. 4. What are some of the common misconceptions about overseas trade? For companies that are new to the export business, they may assume people they will do business with speak English, and that's not always true. You need access to translators. [Foreign clients] would prefer if [you] spoke and communicated in their language. Another problem is that U.S. companies do not understand the competition overseas and pricing. Too many times, U.S. products are overpriced. Another misconception is that once an agent or distributor is found, the company doesn't have to promote their product. That's a mistake. 5. How are issues being resolved for Florida citrus growers over their concerns with Brazilian competition? According to our policy department in Washington, the DOC found that certain producers/exporters in Brazil sold orange juice in the U.S. market at less-than-fair value, with margins ranging from 9.73 to 60.29 percent. As a result, the department will instruct U.S. Customs and Border Protection to collect a cash deposit or bond at the rate of the final margins on imports of the products under investigation. A final injury determination by the International Trade Commission (ITC) is pending. -Interview by Phil Borchmann |
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