1. USDA trade mission offers a microcosm of trade promotion opportunities
The US Minister for Agriculture recently led a trade mission to Chile where US businesses met with Chilean and Peruvian importers to discuss trade.
The delegation visited Espacio Food and Service trade show. 14 US businesses attended including US Wheat Associates.
Trade missions are useful for businesses to introduce product to new markets, learn about potential markets, and have exposure to export sales that we normally wouldn’t have through our organic business activities,”
2023 is the 200th anniversary of US-Chile trade relations. US exports in 2022 equalled $28.9 billion whilst imports were $19.7 billion mostly made up of transportation, travel, and professional and management services sectors.
Chile is the world’s largest importer of American beer.
Trade Horizons advisors are market entry experts: our team of in-country experts assist companies to export, import and enter new locations by using strategies that have stood the test of time and evidence-based advice. Trade Horizons assists companies to plan to distribute and deliver goods or services to a new target market. Contact one of our experts today.
2. Scottish trade missions to California, Nova Scotia
The Scottish Chambers have put out a call to all Scottish businesses in all sectors to attend two trade missions in 2024.
The first trade mission to Irvine which is located in Orange Country, Southern California will take place w/c 18 February 2024. Irvine is home to businesses in the Professional, Scientific, & Technical Services sector, Manufacturing and Health Care. In 2022 the United Kingdom was California’s 12th largest export destination, $4.68 billion exports and $4.12 billion imports.
The second trade mission to Nova Scotia, Canada will take place w/c 17 March 2024. Nova Scotia’s main industries are real estate, public administration, health care and manufacturing. The Chambers site says Nova Scotia has businesses in Retail, Food and Drink, Ocean Technologies, Cultural Heritage and Arts, Aquaculture, Agriculture, Forestry, Offshore Wind and Digital Health Care Solutions.
The Chambers press release calls companies to sign up “from as little as £350” and says the trade missions “are a great opportunity to learn about new markets, to make valuable connections with potential customers and trade partners, and to grow your business internationally.”
Interested businesses can visit this site for more information www.exporthubscotland.com.
3. UAE trade deal frenzy
The UAE has announced it intends to sign trade deals with 6 more countries by the end of this year, namely South Korea, Thailand, Chile, Costa Rica, Columbia and Ukraine.
The UAE recently signed a trade agreement with Georgia with the intention of increasing non-oil trade from $4.8 million to $1.5 billion. The deal reduces or eliminates tariffs on 95% or product lines. The UAE now accounts for 63% of trade with Arab countries.
At the time of writing the South Korea deal was signed 2 days ago on 14 October 2023. Bilateral non-oil trade amounted to $3 billion in 2022. The Korea Electric Power Company constructed four units of a $20 billion nuclear power plant in Abu Dhabi which will supply the UAE’s domestic electricity needs.
Bilateral non-oil trade with Thailand was $3.2 billion and Thailand is the UAE’s second largest trading partner in ASEAN.
In 2021 the UAE exported $9.1B to Thailand consisting mostly of petroleum and aluminium, and imported $3.08 billion of goods mostly cars, office machinery and air conditioners.
In 2021 bilateral non-oil trade with Costa Rica was worth $58.7 million.
In 2021 Columbia exported $173 million mostly of gold, coal and metal ore. In the same timeframe the UAE exported $89 million to Columbia mostly of ethylene polymers, acryclic hydrocarbons and metal stoppers.
In 2021 the UAE exported $162 million of goods to Ukraine mostly medical, ethylene polymers and motor vehicle parts, whilst imports in the same timeframe equalled $600 million mostly consisting of seed oils and iron.
4. US states by FDI and trade
The UK’s largest US state trading partner is Texas with $21.2 billion in bilateral trade in 2022. California UK bilateral trade was estimated at $11.5 billion in 2019, the most recent figure available. By size it is expected that New York would be the UK’s third largest trading partner, but no data is available.
Undeterred, Investment Monitor has published a report on FDI by US State compared to GDP. Delaware comes out on top. Delaware happens to be the US’ 46th most populous state, or least populous but for 7. This is followed in second place by South Carolina, 23rd most populous and Kentucky, the US’ 26th most populous state.
The popularity of Delaware is due to Delaware law which exempts from the corporate income tax certain Delaware holding companies, which are corporations that derive 100% of their income from passive economic activity, such as licensing of intangible assets.
The US’ largest states by economy are California, Texas, New York and Florida.
5. Sweden implements FDI screening
Sweden has recently implemented FDI screening legislation which restricts and controls FDI that does not comply with state criteria or is in an unfavoured sector.
The Swedish law will implement a standstill obligation which blocks a transaction until screening is complete.
The Act states FDI transactions in the following sectors will be affected: Essential services and infrastructure, Security activities, Military equipment, Dual-use items, Critical raw materials, metals and minerals, Location data or sensitive personal data and Emerging technologies and other strategic protected technologies.
The Act will enter into force on 1 December 2023.