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Blog Category: International Trade Administration

Welcoming Investment from South America

Profile photo of Aaron Brickman, Deputy Executive Director, SelectUSA

Guest blog post by Deputy Executive Director, SelectUSA Aaron Brickman

Not only is South America the birthplace of soccer greats and the location of natural wonders, it is also an important and rapidly growing source of foreign direct investment (FDI) to the United States. According to the U.S. Commerce Department’s Bureau of Economic Analysis (BEA), more than 85,000 men and women go to work each day at South American companies operating in the United States.

The SelectUSA South America Road Show this week connected U.S. economic development organizations (EDOs) directly with inversores and investidores in Santiago, Chile; Sao Paulo, Brazil; and Bogota, Colombia to build opportunities for even more South American companies to succeed in U.S. cities and regions.

Why did SelectUSA’s first South American Road Show focus on Chile, Brazil, and Colombia?

  • These three countries accounted for nearly a quarter of inward investment from Latin American sources in 2013.
  • Brazil is the largest source of investment from South America, with a total stock of nearly $15 billion in 2013. Brazilian companies such as JBS, Embraer, Braskem, and Chilli Beans have made significant investments in the United States over the past several years. The annual growth rate of Brazilian investment averaged 19.6 percent between 2009 and 2013, making Brazil the ninth-fastest global source of investment to our country. There is robust interest from a diversity of sectors: 325 Brazilian firms took part in our seminar and one-on-one meetings with EDOs.
  • As of 2013, the stock of FDI from Chile into the United States stood at $983 million. Investment from Chile, with which we have a Free Trade Agreement (FTA), has been growing at a compound annual growth rate of 11.9 percent since 2009. More than 130 Chilean firms registered for the Road Show, and we were joined by Arauco and Elecmetal – two well-known Chilean companies who shared their experience investing in the United States.
  • Colombia, another FTA partner, was the source of over $2 billion of FDI stock in the United States as of 2013. A recent example includes Fehr Foods, a subsidiary of Grupo Nutresa, which announced earlier this year that it will invest an additional $32 million and create 105 jobs in its U.S plant. Many more Colombian firms are looking to find success in the United States, as evidenced by the 190 participants in the Road Show in Bogota. FDI from Colombia to the United States from 2009 to 2014 grew at a compound annual growth rate of 14.6 percent.

Historic Forum Yields Significant Gains for Africa-U.S. Business Ties

Under Secretary of Commerce for International Trade Stefan M. Selig speaking with Elizabeth Littlefield, President & CEO of the Overseas Private Investment Corporation (OPIC) at the U.S.-Africa Business Forum

Guest blog post by the Under Secretary of Commerce for International Trade Stefan M. Selig

Earlier this month, the U.S. Department of Commerce and Bloomberg Philanthropies co-hosted an event showing that Africa is one of the world’s next great sources of economic growth.

The first-ever U.S.-Africa Business Forum brought together American and African business leaders with the heads of nearly 50 African nations to exchange ideas and create partnerships that will promote trade, accelerate job growth, and encourage investment.

And this was not just an academic discussion. We built the kind of relationships that will help usher in a new level of success for the growing economies and businesses of Africa, as well as spur real gains for U.S. companies.

Several American companies, among others, announced new partnerships in Africa, resulting in multi-million and multi-billion dollar deals:

Also, as part of the White House’s Power Africa initiative—which pledges to invest $7 billion and create an additional 10,000 megawatts of cleaner electricity over the next five years— American company Contour Global secured a $120 million contract to rehabilitate an existing Senegalese power site and construct a new one. That deal will provide another 53 megawatts of electricity to Senegal’s citizens.

As excited as my colleagues and I are about these deals, contract signings weren’t the only highlights of the forum.

5 Takeaways about Doing Business in Africa

In case you missed it during the U.S.-Africa Business Forum last week, the International Trade Administration (ITA) published a report that shows that the U.S. trade relationship with Africa is growing at an increasing rate.

ITA’s Report on U.S.-Africa Trade and Investment examines the economic statistics related to U.S. commercial involvement in sub-Saharan Africa (SSA) – one of the world’s fastest-growing economic regions. The report is part of the Doing Business in Africa (DBIA) campaign, through which federal trade agencies are joining forces with U.S. businesses to take advantage of the growing export and investment opportunities available in the region.

Here are the five key takeaways of the report:

1. Sub-Saharan Africa is one of the fastest growing regions in the world. Average GDP growth has surpassed 5.2 percent three straight years. The International Monetary Fund estimates that this will increase in both 2014 and 2015.

2. U.S. exports to SSA are at record levels. Merchandise exports reached $24 billion in 2013, an increase of $8.8 billion from 2009. The past decade saw the largest increase in value of U.S. exports to sub-Saharan Africa in history; U.S. goods exports have increased by 130 percent since 2000, or an average of 6.7 percent annually.

3. Small and medium-sized businesses are finding success in SSA. More than 92 percent of businesses exporting to Africa are considered small and medium-sized enterprises—those with fewer than 500 employees. They accounted for a 53 percent increase in the value of exports to the region from 2009-2012.

4. Most export growth originates from Texas, Louisiana, New York, Illinois, New Jersey and Georgia. In total, these states accounted for 60 percent of total exports and more than 70 percent of growth in exports to SSA in 2013. Mineral fuel and oil drilling, automotive parts and supplies, precious metals, and boilers and machinery parts are the top export sectors to SSA common among these states.

5. Total U.S. Foreign Direct Investment (FDI) in Africa has grown by 37.5 percent since 2009. While world foreign direct investment position in 2012 was 27 percent greater than in 2009, U.S. FDI position grew by 40 percent during that period.

As evidence of the report’s positive outlook for U.S. trade with Sub-Saharan Africa watch this short video of many of the deal signings that happened last week at the U.S.-Africa Business Forum. 

If your business is ready to do business in Africa, visit Trade.gov/dbia or contact your nearest Export Assistance Center.

U.S. Secretary of Commerce Penny Pritzker Makes First Official Trip to India for U.S.-India Strategic Dialogue

U.S. Secretary of Commerce Penny Pritzker Makes First Official Trip to India for U.S.-India Strategic Dialogue

The commercial relationship between United States and India has long stood as a core pillar of the alliance between our two countries. The United States is committed to reinvigorating ties with India and expanding our economic partnership.  That is why U.S. Secretary of Commerce Penny Pritzker traveled to India this week, where she joined U.S. Secretary of State John Kerry for the U.S.-India Strategic Dialogue in New Delhi. Their trip marks the first U.S. Cabinet-level visit to New Delhi since the new Indian government was elected. Earlier this week, Secretary Pritzker visited Mumbai for meetings with Indian business leaders to discuss new avenues to reinvigorate economic ties between our two nations.

While in Mumbai, Secretary Pritzker delivered remarks at an event hosted by the Confederation of Indian Industry (CII), focused on the U.S. commitment to partner with the newly-elected Indian government, especially in areas of infrastructure, manufacturing, and business investment. Founded over 115 years ago, CII is one of the most important business groups in India and plays an active role in India’s development process. 

As part of efforts to advance the U.S.-India economic partnership, Vinai Thummalapally and Chairman & Managing Director of Export-Import Bank of India Yaduvendra Mathur signed a Memorandum of Intent (MOI) between SelectUSA and the India’s Export-Import Bank. This MOI will encourage collaboration to attract Indian investment to the United States. SelectUSA is the first U.S. government-wide program to promote and facilitate business investment in the United States. Export-Import Bank of India directly supports Indian foreign direct investments abroad.  

U.S.-Africa Business Success Stories: How a Supplier of Powerboats to the U.S. Military Started Doing Business in Nigeria

Note: This post is part of the U.S.-Africa Business Success Stories series highlighting the work of the Department of Commerce to strengthen the economic relationship between U.S. and African businesses. This series will lead up to the U.S. Africa Business Forum on August 5th, the first of its kind event, which will convene African heads of state and government, U.S. government officials and business leaders to discuss trade and investment opportunities on the continent.

Hann Powerboats’ customers include the United States Air Force, United States Navy, and the United States Army Corps of Engineers – and now, because of assistance that the company received from the Department of Commerce, they can add another name to their impressive list: the Nigerian oil and gas company, MOP Marine.

U.S. businesses like Hann Powerboats are increasingly seeing tremendous economic opportunity in Africa, and the reason why is simple: Africa is thriving. From 1995 to 2013, Africa experienced an average annual GDP growth rate of 4.5 percent. In 2012, eight of the twenty fastest growing economies in the world were in sub-Saharan Africa, and, according to the IMF, in 2013, total U.S. two-way goods with the region were $63 billion. Africa’s potential to be the world’s next major economic story is why businesses in the United States, like Hann Powerboats, want to offer their products, services, and expertise to help unlock even more of Africa’s potential – that is why the Obama Administration and the Department of Commerce remain committed to assisting American businesses in finding opportunity in this economically expanding region.

Hann Powerboats became interested in expanding its business to Africa when it was approached by a potential client in Nigeria to secure MOP Marine’s need for patrol boats. Hann Powerboats asked for assistance from the Tampa Bay U.S. Export Assistance Center (USEAC) and the U.S. Commercial Service (CS) team in Lagos to help with vetting this potential partner, and CS Lagos was able to facilitate meetings between Hann Powerboats and MOP Marine. The Tampa Bay USEAC then helped put Hann Powerboats in touch with the Nigerian Embassy in Washington D.C. to help with them acquire proper documentation. The result of this assistance allowed Hann Powerboats to make sales to MOP Marine for over $4 million.

Building Bridges to Young Africa Leaders

Building Bridges to Young Africa Leaders

Guest blog post by U.S. Deputy Secretary of Commerce Bruce Andrews

The United States understands the importance of creating opportunities for young people to succeed, both in this country and around the world. That is why yesterday, during a town hall with 500 exceptional young people who participated in the Washington Fellowship for Young African Leaders - President Obama announced the expansion of his Young African Leaders Initiative (YALI). At the town hall, President Obama announced that the fellowship, the flagship YALI program, will be renamed the “Mandela Washington Fellowship for Young African Leaders,” and will be doubled to reach 1,000 participants per year by 2016. Launched in 2014, YALI is a signature effort to support the next generation of African leaders and embodies President Obama’s commitment to invest in the future of Africa. The Washington Fellowship connects young African leaders to leadership training opportunities at some of America’s top universities to help expand their leadership skills and knowledge so they can foster change in their communities and countries.

At the Commerce Department, we are also working closely with young entrepreneurs to help spur economic growth by helping them gain the skills and connections they need to launch new businesses and create jobs in their communities. Entrepreneurship is a cornerstone of the global economy, giving people the power to unlock their economic potential and transform their communities. With the launch of the Presidential Ambassadors for Global Entrepreneurship (PAGE) initiative, chaired by Commerce Secretary Penny Pritzker, the U.S. government is partnering with 11 prominent American business leaders to mentor the next generation of entrepreneurs. Africa is an area of interest for PAGE efforts. In fact, as part of a trade mission to West Africa this past May, Secretary Pritzker and PAGE member Nina Vaca, CEO of Pinnacle Technical Resources, visited the Meltwater Entrepreneurial School of Technology (MEST) and the MEST Incubator program, which provides training, investment and mentoring opportunities for aspiring technology entrepreneurs in Africa. In addition, PAGE members Steve Case, Chairman and CEO of Revolution, and Alexa von Tobel, CEO of LearnVest, will be sharing their experiences and expertise on Wednesday on an “Enabling Inclusive Economic Development” plenary session, as part of the fellowship Summit.

Supporting the Best Environment for U.S. Exporters

Supporting the Best Environment for U.S. Exporters

One way the International Trade Administration (ITA) supports U.S. exporters is through specific teams of specialists who focus on specific industry sectors.

From marine technology, to health care, to automobile manufacturing, ITA offers export support in a variety of sectors.

To promote professional development and to make sure our specialists stay on top of the latest business trends and opportunities, our teams come together to share lessons learned, study best practices, and discuss ways their industry is changing.

This month, the Environmental Technology team did just that.

Their week-long conference included various seminars which built on existing knowledge of export policies and emerging environmental technologies. These conferences benefit exporters because they keep the commercial service specialists up to date on the latest and greatest in their industry. The main focus of this year’s training sessions was ways the team can address pollution issues related to water, air, and soil, and to learn about new recycling technologies.

Other ways ITA supports environmental technology exporters are through programs such as;

The environmental sector is a large and growing industry. Environmental technologies make up a $735 billion global market with U.S. exports currently comprising about $45 billion of this market. Therefore there is much growth potential for U.S. envirotech exporters.

Industry-specific offices are just one of the ways ITA constantly works to make exporting easier for American businesses.

You can find out more about our industry teams and how they support exporters at export.gov. Or you can contact the Environmental Technology Team so they can help lead you in the right direction.

U.S.-Africa Business Success Stories: How a Texas Oil Company Started Doing Business in Cameroon and Morocco

Note: This post is part of the U.S.-Africa Business Success Stories series highlighting the work of the Department of Commerce to strengthen the economic relationship between U.S. and African businesses. This series will lead up to the U.S. Africa Business Forum on August 5th, the first of its kind event, which will convene African heads of state and government, U.S. government officials and business leaders to discuss trade and investment opportunities on the continent.

The geographic distance between Texas-based Arnold Oil Company and Sub-Saharan Africa may be thousands of miles, but their economic relationship has never been closer. U.S. businesses like the Arnold Oil Company are increasingly finding economic opportunity in Sub-Saharan Africa: between 2001 to 2012, U.S. trade to sub-Saharan Africa tripled from $6.9 billion to $22.5 billion dollars. Africa is now home to six of the top ten fastest growing economies in the world, leading President Obama to call sub-Saharan Africa the “world’s next major economic success story.” That is why the Department of Commerce is working to facilitate and advocate for American businesses in this growing region, and U.S. firms are eager to help unlock even more of Africa’s economic potential.

A family-owned supplier of automotive and oil lubricant products, the Arnold Oil Company became interested in expanding its business abroad. They met with the U.S. Export Assistance Center (USEAC) in Austin to request assistance in developing an exporting and marketing plan for their products. After creating a plan that satisfied the company, the USEAC arranged for a meeting with a representative from the U.S. Export-Import Bank to assist the Arnold Oil Company with financing its exports.

But the USEAC took its assistance one step further, introducing the Arnold Oil Company to a buyer in Cameroon, who eventually was signed as a distributer. As a result of this relationship, the Arnold Oil Company was able to ship their first exports of oil lubricants to Morocco, generating revenue of more than $24,000 in 2013. With assistance from the USEAC, the Arnold Oil Company was able to expand its business into one of the most economically dynamic regions in the world.

U.S. Secretary of Commerce Penny Pritzker Talks About Efforts to Boost Exports in the Rural Delta

Secretary Pritzker promoting rural exports in Memphis

Exports are an important tool for economic development and job creation, which is why the Obama Administration has made increased exports a central pillar of its strategy for economic growth. With the recent launch of NEI/NEXT, the next phase of the successful National Export Initiative, U.S. Secretary of Commerce Pritzker has made it a priority to expand the U.S. export base and to help more American businesses of all sizes – including rural businesses – capitalize on opportunities in foreign markets.

As part of this effort, Secretary Pritzker traveled to Memphis, Tennessee Thursday to participate in the “Made in Rural America” Regional Forum, focused on boosting rural exports. Hosted by the Delta Regional Authority (DRA), the forum convened small business owners, industry representatives, business support organizations, and local, state, and federal leaders to discuss ways to help rural businesses grow and reach the 95% of customers that live outside our borders. Secretary Pritzker participated in an armchair discussion with DRA Federal Co-Chairman Chris Masingill and discussed how we can all work together to enhance opportunities for businesses in rural communities and how we can focus on ways to increase exports from the Delta region’s many businesses. Today’s forum is the second of five regional forums to be held across the country, aimed at helping local businesses integrate exports into their economic growth strategies.

At the Forum, Secretary Pritzker discussed the Commerce Department’s resources to help rural businesses compete in the global marketplace. The Commerce Department’s International Trade Administration (ITA) has trade specialists in more than 100 U.S. cities and over 70 countries worldwide to help companies take advantage of business opportunities abroad and connect them to trade events, foreign buyers, and other partners. In fact, about 85 percent of ITA’s clients are small and medium-sized businesses, and on average 38 percent are rural exporters.

Since the launch of the NEI in 2010, 1.6 million more Americans are earning a paycheck from an export-supported job, bringing the total to 11.3 million jobs – the highest in 20 years.

U.S. Secretary of Commerce Penny Pritzker Discusses Opportunities for U.S. Companies to Export

U.S. exports reached a record $2.3 trillion in 2013 and support a record 11.3 million U.S. jobs. Thousands of companies across the country made exporting a strategy to growing their business and in fact, exports have driven the economic recovery and job creation in a number of U.S. cities. Because of the critical role of exports, the Department of Commerce recently launched the next phase of the National Export Initiative, NEI/NEXT. Building on the success of the National Export Initiative, NEI/NEXT is a new customer service-driven strategy with improved information resources that will help American businesses capitalize on existing and new opportunities to sell Made-in-America goods and services abroad.

As part of this effort, U.S. Department of Commerce Secretary Penny Pritzker visited the Qualcomm headquarters in San Diego, Calif. yesterday, where she led a roundtable discussion on the importance of U.S. exports with the “Global San Diego Export Plan” team. This plan, which aims to integrate exports into San Diego’s economic development strategy, is being developed in close consultation with the Commerce Department's International Trade Administration (ITA) and the Brookings Institution’s Metropolitan Policy Program.

During the roundtable discussion, Secretary Pritzker met with local private and public sector leaders and learned more about the success of their export strategy and the challenges they still face. The partnership-driven export and investment strategy has made a big impact on the San Diego economy, but there are still more areas and opportunities for growth. One of the key objectives of NEI/NEXT is to promote exports as an economic development priority for communities across the country. San Diego’s export plan is an excellent example for how other cities and metropolitan areas across the country can partner with businesses and government to better facilitate exports.

Roundtable participants also spoke about the practical challenges they are facing including the role of small and medium sized businesses, infrastructure, retaining talent and branding. Secretary Pritzker discussed Department of Commerce resources and ways the Department and ITA could provide assistance to businesses and the Export Plan team to help overcome some of these challenges.

Since the launch of President Obama's National Export Initiative in 2010, the United States has seen strong export-driven economic growth and has broken export records four years in a row. Increasing U.S. exports remains a top priority for the Obama Administration, and the Commerce Department is ready to assist San Diego and other communities in making the most of their exporting potential.