CHEMTECH
May 1999
CHEMTECH 1999, 29(5), 11-16.
Copyright © 1999 by the American Chemical Society.



STARTING THE PROCESS

Let the government help build your international business

The United States and Foreign Commercial Service of the U.S. Department of Commerce has built a network of centers around the globe to link U.S. businesses and clients to foster partnerships for a global marketplace.

Tish Falco

A s we approach the 21st century, the marriage of international and domestic markets is becoming more mainstream. The Internet, electronic mail, and other technological advances in communication have created a fast-paced global economy. These technologies have altered the way businesses operate by bringing individuals closer together and making business transactions easier. To keep pace with this changing global economy, many U.S. businesses, especially small- and medium-sized companies, have found the help they need from the United States and Foreign Commercial Service (US&FCS). An agency of the U.S. Department of Commerce (DOC), US&FCS supports U.S. commercial interests overseas and facilitates American export sales. US&FCS facilitates U.S. trade to keep American businesses globally competitive. As a global facilitator, US&FCS works with other public and private trade organizations to help small- and medium-sized companies develop management strategies for expanding into international markets.

How US&FCS can work for you
The goal of US&FCS is to develop an extensive, solid trade promotion infrastructure and communication network so U.S. businesses can grow internationally and readily connect with clients and partners in the global marketplace.

US&FCS can help chemical exporters discover exciting and lucrative opportunities in international markets; these might include discovering privatization ventures in Berlin and Bonn or breaking into hard-to-crack markets in China. By forming a long-lasting and personal partnership with clients, US&FCS is able to help them overcome the obstacles of globalization. A partnership with US&FCS offers a multifaceted relationship, with the US&FCS playing the role of an international business advisor, advocate, and business partner to ensure export success. Partnerships with U.S. chemical exporters usually begin in our domestic offices and extend worldwide through our network of international offices, District Export Councils (DECs), state trade development agencies, world trade centers, host country business organizations, and American chambers of commerce.

US&FCS facilitates trade and meets client expectations by providing high-quality service. A partnership with US&FCS begins with an international development strategy specifically tailored to clients'--in this case, chemical exporters'--needs and continues with a commitment to success and high performance. The following are some examples of how US&FCS has and will continue to help numerous chemical exporters to overcome the obstacles encountered during globalization.

  • The restructuring and privatizing of the East German Chemical Triangle, located in Sachsen-Anhalt, is one of the German Federal Government's most monumental post-reunification undertakings. The privatization of the ChemiePark Bitterfeld was vital to U.S. commercial interests; it was the second area of U.S.-led revitalization in the new federal states of eastern Germany and offered opportunities for significant U.S. participation in postprivatization. A consortium, STD/ASI, consisting of General Atomics's German subsidiary, Spezialtechnik Dresden GmbH (STD), and Fluor Daniel's German subsidiary, ASI Industrieanlagen Service (ASI), sought the US&FCS Berlin and Bonn offices' constructive support. These commercial offices were integral during two years of intensive negotiations with German politicians, ending in May 1998. The potential amount of sales is projected at $225 million for American suppliers in this area and has led to other deals for chemical companies, such as Dow in Value Park, an industrial zone for chemical companies in Saxony-Anhalt.
  • CertainTeed Corporation, Plastics Division, based in Valley Forge, PA, successfully signed the Indian firm, International Commercial Corporation, as their exclusive agents in eastern India in December 1998. US&FCS offices in India introduced CertainTeed Corporation, which manufactures PVC and HDPE pipes and fittings for use in chemical and petrochemical industries, to the Indian firm. The anticipated business for the U.S. company in this region is expected to total $1.5 million during the next two to three years.
  • In May 1997, GP66 Chemical Corporation, which produces Miracle Cleaning Products, requested advocacy and assistance from US&FCS-China in Beijing to launch its marketing strategy with the Ministry of Chemical Industry's support. Through numerous communications and extensive negotiations, China National Chemical Construction Corporation, the ministry's largest enterprise, agreed to market Miracle Cleaning Products by signing a "Product Evaluation" letter along with the purchase of 500 cleaning kits for plants in China. Sales were estimated at $1 million per month, and GP66 was able to enter the retail market within two months.
  • After months of stagnation because of a change of officials at the National Institute of Ecology (INE) and modifications in Mexico's industrial waste policy, Chemical Transportation Inc., formerly the environmental service division of Westinghouse based in Rillito, AZ, sought guidance from US&FCS-Mexico. Commercial officers met several times with INE's representatives, made phone calls to support the signing of the permit, asked INE officials to include Chemical Transportation Inc. in their listing of companies authorized to provide collection and transportation of hazardous waste services in Mexico, and made arrangements for the company's lawyer to meet with key officials to discuss their permit authorization. As a result of these extensive advocacy efforts, the permit was signed and received by Westinghouse in October 1996. Now, the company sits poised to make $250,000 in its first six months of operation in Mexico.

Meeting the needs of global clients
To meet the needs of U.S. companies in the rapidly changing global economy, US&FCS has expanded its scope to focus on client-driven services while helping U.S. businesses expand into international markets. US&FCS offers its clients innovative services and solutions to meet the economic challenges--such as the Asian financial crisis, the introduction of the Euro, and the instability in the Russian and Brazilian economies--facing small- and medium-sized chemical exporters in the global marketplace. A detailed list of our trade promotion services or toolkits is available. See sidebar, Export Promotion Services.

TO SIDEBAR: Export Promotion Services

Convenient global network of offices
Domestic and international offices are directly linked through a worldwide communication and information network, which offers a unique, seamless service to U.S. exporters. Through this network, US&FCS offers services and programs to aid the prudent American business executive in expanding to overseas markets. US&FCS has also developed a domestic office network to ensure that U.S. chemical exporters have convenient access to its services. Our network is comprised of 20 U.S. Export Assistance Centers (USEACs) and 80 Export Assistance Centers (EACs) strategically located across the United States. A list of these domestic offices can be found in the sidebar, Domestic and Regional Offices. USEACs are a "one-stop" shop for U.S. government trade promotion services. These centers help our busy clients by providing key export promotion services at one location. Represented at the USEACs are the US&FCS, the Small Business Administration, and the Export-Import Bank. They offer export and trade finance counseling, market research, trade contacts, trade promotion events and programs, and international contract bidding support through the U.S. Advocacy Center. The EACs are smaller offices that serve as spin-off trade promotion centers to support the centrally located USEACs. Working together with overseas offices, the domestic EACs help connect U.S. companies to international trade partners.

TO SIDEBAR: Domestic and Regional Offices

EACs are staffed by US&FCS trade professionals who provide one-on-one federal export counseling. Clients, such as chemical export companies, are each assigned a trade specialist who works with their business to identify the best markets for their products and to develop an effective market entry strategy. Trade specialists also advise clients on distribution channels, pricing, programs and services, and relevant trade shows and missions. In addition, they assist with trade finance programs that are available through federal, state, and local entities. Available in most U.S. business districts, US&FCS's cadre of trade professionals offers U.S. businesses a unique link to overseas market information, contacts, and trade expertise. In addition, each of our domestic offices works closely with experienced international business partners. This team of partners includes a national network of 51 DECs, a coalition of business, academic, and government professionals dedicated to expanding international trade by providing business advice, as well as a variety of private sector partners ready to help U.S. businesses in the demanding field of international business.

Some businesses, which already have operations overseas, or which are relatively experienced exporters, may want to contact commercial service officers at our international offices directly. To guarantee ease of access and convenience for U.S. companies, we have strategically placed offices throughout the United States and in almost 70 countries abroad. See sidebar, Overseas Offices, for a complete list. These officers are committed to helping chemical companies explore diverse, new international business opportunities. US&FCS covers every region of the world with approximately 150 offices in East Asia Pacific, Africa, the Near East, South Asia, the Western Hemisphere, Europe, and the New Independent States (NIS). Many overseas offices are strategically located in local business districts and outside U.S. embassies to facilitate easy access and efficient business operations. To ensure that government functions complement rather than compete with services provided by American private-sector entities, international commercial service officers work closely with local American chambers of commerce and other key private-sector partners operating in the area. Commercial service officers are professionals dedicated to helping U.S. companies achieve international success. Commercial service officers have extensive private sector insights and an intimate knowledge of the language, culture, and business practices of the region. They are on the front lines, working with host-country decision makers and engaging the competition as they promote U.S. exports. Commercial service officers advise U.S. firms on business opportunities and advocate on behalf of American companies in project bidding and trade disputes.

TO SIDEBAR: Overseas Offices

Assisting emerging markets
In addition to the network of domestic and overseas centers, US&FCS has built commercial centers in four emerging and rapidly changing global markets: São Paulo, Brazil; Johannesburg, South Africa; Djakarta, Indonesia; and Shanghai, China. These commercial centers are a "home away from home" for U.S. chemical exporters. These centers are designed to promote international trade and provide focused client services within these strategic areas. Commercial centers are staffed with highly trained trade specialists and welcome U.S. businesses by furnishing convenience and accessibility to trade promotion services and commercial service partners within the premises. Besides offering regular programs and services, commercial centers also provide rental office space, state-of-the-art computers, fax and phone facilities, and designated areas to display products and catalogs.

The Commercial 
Service

The developing markets in Russia and NIS offer significant potential challenges and rewards for American firms. To help U.S. companies enter this market, we have worked with the U.S. Agency for International Development (USAID) to establish American Business Centers (ABCs) in 11 key cities throughout Russia and NIS. The ABCs are one of our many innovations to help U.S. companies gain market access around the world. By providing essential professional office and business support services similar to the overseas offices, the ABCs are breathing commercial vitality into cities and industrial centers that were previously ignored by U.S. exporters, because they lacked modern, efficient business facilities and critical support services needed for trade and investment.

US&FCS works in conjunction with other government agencies to guarantee a sound trade promotion infrastructure. The office of Multilateral Development Bank Operations (MDBO), a sector of US&FCS, provides outreach and counseling to U.S. firms seeking to bid on MDB-financed projects; the MDBO also coordinates the activities of the US&FCS liaison officers posted to the five MDBs: the World Bank, the Inter-American Bank, the Asian Development Bank, the African Development Bank, and the European Bank of Reconstruction and Development. The MDBO focuses particularly on helping small- and medium-sized companies--which sometimes have difficulty gaining access to international credit or other sources of international development aid. The MDBO alerts U.S. firms to a multitude of international finance projects through business outreach, information collection and dissemination, counseling, advocacy, training, and public relations.

Harnessing new technology
To better serve U.S. clients in the rapidly changing global marketplace, US&FCS is dedicated to continuous development of new products and services. Identifying, developing, testing, and implementing new high-quality products, services, and delivery systems to meet the expectation of clients, particularly small- and medium-sized enterprises, helps U.S. companies to maintain their competitive edge in the fast-paced global economy. US&FCS is capitalizing on modern communications technologies and using a team approach to promote exports and a strong partnership with the private sector. US&FCS uses technology to connect remote and underrepresented business communities and develops new products and services to keep up with the changing needs of U.S. exporters. In summary, US&FCS continues to be a valuable partner to U.S. businesses throughout the world.

A new initiative, Innovation 2003, is focused on selected domestic offices and overseas posts in South America, the Middle East, Europe, and Southeast Asia. These pilot sites are testing new customized services and are experimenting with tailoring existing products and services to better meet clients' needs. US&FCS also helps support DOC's electronic commerce, or e-commerce, initiative. Through e-commerce, companies conducting daily business transactions via the Internet can streamline operations and conduct business faster, cheaper, and more effectively. Entrepreneurs can start new businesses more easily by accessing up-to-date information.

Videoconferencing is another promising trade promotion service in which companies, as well as political and economic officials throughout the world, can connect via the Internet rather than by satellite. Companies using state-of-the-art technology can eliminate cumbersome travel costs and physical obstacles. With e-commerce, companies also can find business contacts and make sales. Video Gold Key, a technological variation of the Gold Key service, can now be made online, connecting companies separated by physical barriers. Refer to http://www.ita.doc.gov for more information on Video Gold Key. Technology is now connecting cultures and nation-states during the process of globalization.

US&FCS has also found another way to use e-commerce to help U.S. exporters: "push technology". U.S. companies using "push technology" can receive customized international market research directly to their desktops. A U.S. company only needs to indicate their business and markets of interest to our overseas offices via the Internet, and those offices will send relevant information on existing opportunities in industries and international markets. Also, the recently developed Virtual Trade Show allows U.S. companies to exhibit products and services online via the Internet during and after a trade show.

The US&FCS is proud to help U.S. chemical exporters better understand the emerging world market and to assist small- and medium-sized U.S. chemical companies in successfully overcoming obstacles to gaining or increasing their market share overseas. The solid trade promotion infrastructure that connects the domestic and international offices, the portfolio of reliable, reasonably priced trade promotion tools, and the on-going effort of the US&FCS to develop cutting-edge, innovative technology allow this government agency to promote exports of U.S. chemical goods.

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