Strategic Partnerships and New Markets

MBDA National Director Hinson and Shawn Ricks, Senior Advisor to the National Director on Global Affairs began a five-day trip to Brasilia and Sao Paulo, Brazil. This trip will provide an opportunity for MBDA to build relationships with key stakeholder groups essential to reaching its export targets under the National Export Initiative, create greater access to emerging markets for minority business enterprises, and support job creation in the United States.

On Monday, Director Hinson and Senior Advisor Ricks met with International Trade Administration Senior Commercial Officer Brian Brisson and his team to discuss business opportunities for minority-owned businesses in Brazil. As Latin America’s biggest economy, Brazil has strong domestic demands and a growing middle class. Its diversified economy offers U.S. companies, especially minority-owned – who are nearly twice as likely to export as non-minority owned business, many opportunities to export their goods and services.

Export.gov is a tool created to assist U.S. business in accessing international markets by providing the resources necessary for export

Purpose: Client Resource, Business Assistance

What you should know?

• Offers a wide range of current industry and trade information to help exporters of U.S goods and services find the information they need to compete successfully in overseas markets

Vietnam is a true emerging market, offering ground floor and growing opportunities for U.S. exporters and investors. Vietnam’s economic growth rate has been among the highest in the world in recent years, expanding at an average about 7.2 percent per year during the period 2001-2010, while industrial production grew at an average of about 12 percent per year during the same period.

Vietnam registered GDP growth rate of 6.7 percent in 2010 and was one of only a handful of countries around the world to experience such levels of economic growth.

Moving forward, inflation remains a main risk to Vietnam’s economy, which the Government of Vietnam (GVN) is addressing by balancing growth targets with price stability measures. This challenge will not be easy to meet. Nevertheless, the GVN has confirmed its commitment to economic growth and is targeting 2011 GDP growth at 6.5 percent.

The momentum and direction generated by the entry into force of the U.S.–Vietnam Bilateral Trade Agreement (BTA) in 2001 transformed the bilateral commercial relationship between the United States and Vietnam and accelerated Vietnam’s entry into the global economy with Vietnam joining the WTO in January of 2007. Since the BTA, bilateral trade has increased over six-fold from $2.9 billion in 2002 to $18.6 billion in 2010.

The long anticipated Korea-U.S. Free Trade Agreement (KORUS-FTA) was implemented on March 15, 2012 becoming our nation’s largest FTA since NAFTA. The agreement has the potential to increase U.S. exports to Korea by approximately USD 10-12 billion, and it will be especially beneficial for U.S. SMEs. In 2009, nearly 18,000 SMEs exported some USD 8.4 billion worth of merchandise to Korea.

Total 2011 U.S.-Korea trade exceeded USD 100 billion for the first time ever. U.S. exports reached an all time high of USD 43.505 billion. U.S. exports increased 12% over 2010 levels.

Korea is the United States’ seventh largest trading partner. The U.S. is the third largest exporter to Korea with a 9 percent market share. Key competitors include China with 16.8 percent, Japan with 15.3 percent, and the EU’s 27 nations with 10%. With the EU having already implemented its FTA with Korea, U.S. firms will now again be in a stronger competitive situation following KORUS implementation. (China’s trade reflects significant re-export activity.)