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This publications page contains our free e-newsletter Beyond Virginia issued every other Wednesday and the newsletter archives. You can also view over 70 FastFacts— export FAQ’s on getting started, export issues, and various countries and regions. Virginia companies may also access our annual reports , various special reports or download our annual calendar of events. Our resources page provides links to numerous federal, state and private resources.

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Beyond Virginia Newsletter May 14, 2008

FEATURED ARTICLES >>
Innovative Australian Companies visit Virginia: June 2 - 6, 2008
The Doha Trade Talks: Boom or Bust for Virginia Exporters?
The Importance of Developing a Vision to Successfully Expand Internationally

EVENTS >>
Trade Mission to Czech Republic & Hungary
Farnborough International 2008
Trade Mission to Ukraine & Romania
Trade Mission to Australia & Japan
60th Virginia Conference on World Trade
Trade Mission to Canada - Toronto & Montreal
Poleko Trade Show and Poland Trade Mission
Trade Mission to Mexico
Trade Mission to Vietnam
Trade Mission to Saudi Arabia & TBD

FEATURED FAST FACT >>

NEWS >>

To view more trade news, click here.

TRADE SPOTLIGHT >>

TIP >>

QUOTE>>

DISCLAIMER AND PRIVACY POLICY>>

Innovative Australian Companies visit Virginia:
June 2 - 6, 2008

The delegation will be led by the Australian Capital Territory (ACT) Chief Minister, Mr Jon Stanhope MLA, and is part of a broader mission encompassing the USA and Canada. Mr. Stanhope is also the ACT Treasurer and Minister for Business and Economic Development. As such, he is acutely aware of the importance of investing in innovation to ensure the future, not only of a company, but of a city and a region.

The Canberra companies on the mission are visiting the Virginia region to explore a myriad of opportunities for collaboration, knowledge transfer and innovation harvesting. Canberra’s strong focus on research and development, ICT, and government and defense activities has seen many business ventures between US and Canberra companies thrive. The delegation program has been designed to give the companies the opportunity to further scope the relevant markets and trade opportunities for their products and solutions, and to help them better plan for a sustainable market entry.

The delegation from Canberra will consist of the following companies:

1. Aspen Medical | www.aspenmedical.com.au
Aspen Medical is an international company providing specialized healthcare solutions in Australia, South East Asia and Europe. Aspen’s core services fall into three main business areas:

Healthcare service delivery – provision of people, facilities, equipment, consumables, pharmacy products, procedures or any combination of these services.
Consulting – strategic, clinical, operational and disaster planning services
e-Health – Second-Opinion (Tele-Health and Tele-Consulting

In the USA, Aspen could provide critical healthcare solutions to public healthcare institutions and systems that have an imperative non-critical surgery backlogs and/or service delivery shortfalls. The US military could also benefit greatly from their capabilities to supplement current efforts in providing healthcare services in challenging regions (such as Iraq and Afghanistan), and relieving deployed military personnel and mitigating operational fatigue for in-country personnel.

2. Auraya Solutions | www.auraya.net
Auraya Solutions manufacture and deliver services for biometric voice authentication via telephone, web, or wireless services anywhere in the world in any language. Current Auraya applications include authentication for telephone banking, password reset, on-line transactions and strengthened proof-of-identity in call centers. Auraya’s products also enhance security against identity theft in various industries including in government, banking and finance, telecommunications, and retail. Auraya’s unique web-based service offers clients the opportunity to evaluate and customize voice authentication to meet their specific security and user interface requirements.

Auraya is keen to connect with Banking and Government organizations that need to enhance their security, and especially those with call centers.

3. Beyond Business Connections (VEDP's Global Network partner) | www.beyondbusiness.com.au

Beyond Business Connections (BBC) specializes in accelerating international firms' entry into the Australian Public sector market. The company's core focus is to shorten the sales cycle for its clients and has developed a business model that minimizes both the financial and commercial risks often associated with expansion into the Australian market. BBC boasts an impressive track record of having directly generated over AU$100 million in new sales revenue for its clients.

BBC develops a tailored and comprehensive package for each client comprising a detailed product breakdown of services that can be taken up incrementally or as an integrated three-phased market launch. Typical services include: market intelligence, enhanced market competitiveness, establishment of an Australian presence, establishing a legal presence, introduction to the right partners, navigating Australian Government procurement procedures, and identifying Government initiatives and opportunities aligned with the client's interest and capabilities. BBC has particular strengths in the ICT, Defense, Security, Communications and land warfare sectors.

4. Cackleberry | www.cackleberry.com.au
Cackleberry is a unique brand of children’s clothing and lifestyle products designed specifically for boys aged three months to five years of age. Cackleberry has a passion for providing 'Something Different' to the market place and a mission to "Dress Little Boys in Confidence and Style". A staggering 80% of manufacturers, be it Australian or international, design their collections for little girls, so this company is aimed at providing something unique for this under-served market.

Cackleberry's goal is to meet with potential US agents and showrooms in order to establish effective distribution channels into key US retailers, particularly those that sell into higher end retail boutiques.

5. John Walker Crime Trends Analysis | www.johnwalkercrimetrendsanalysis.com.au
John Walker Crimes Trends Analysis provides evidence-based analysis of the costs of crime to assist governments, institutions and organizations concerned with, or working within, the criminal justice system to enhance their strategic planning. In an increasingly globalized economy, a specific area of specialization is the identification of the extent, costs and key elements of transnational crime.

The company provides consultancy services specializing in the development of criminal justice forecasting and strategic planning models that improve the medium to long term focus and efficiency of police courts, corrections, and crime prevention and financial regulatory agencies.

John Walker Crimes Trends Analysis is focused on securing funding from international organizations to set up an international research project to monitor country-by-country trends in the proceeds of transnational crime, and the mechanisms used to launder the money. This research would assist international law enforcement agencies to focus on the “real” problems and solutions to preventing transnational crime.

6. Mitchell Personnel Solutions | www.mpsolutions.com.au
Mitchell Personnel Solutions (MPS) is a personnel security vetting and registered training service organization, specializing in reducing time and effort in vetting personnel for government security positions. Their security vetting measures – including the verification of identity, associations giving rise to a conflict of interest, and background evaluation – enable governments to make the right security decisions for their organization. MPS' security vetting services are also delivered in a vast array of industries including education, finance, health, hospitality, logistics, recruitment, retail, security, and travel.

As a recognized training organization, MPS has expanded their current offerings with an innovative e-learning training solution that provides scenarios based awareness programs in the field of security, code of conduct, OH&S, Ethics and accountability, and risk management.

MPS' services are ideal for government agencies and defense-focused integrators who have a need for ‘out of classroom’ training modules. Outside of the government market, mining and heavy industry companies would benefit by addressing a need to educate on risk management and OH&S compliance.

7. Simurban | www.simurban.com
Simurban provides a simulation solution that will save urban planners significant time and money through simulating the proposed development and its impact on the surrounding environment.

The Simurban World Simulator allows clients to visualize, analyze, and demonstrate a realistic three dimensional (3D) environment in real-time (and on a desktop or notebook computer). Simurban creates models of buildings and other 3D objects like cars, trees, people, street furniture, etc for visualization in 3D models. Simurban also provides interspatial, photogrammetry, and aerial survey services, and deals with licensing acquisition of digital aerial photography and other height data used in 3D simulation models. In addition, the Simurban Environment Editor gives clients the ability to collate height data, aerial photography, 3D models, scenery, water and more to create one real-time 3D simulator. Simurban has recently developed the Mycosm 3D visualization platform for license across numerous market sectors, including in entertainment (online games, virtual worlds, social networking) and education (training simulation).

The company is keen to identify Affiliate Service Provider (ASP) partners in the urban planning sector.

The Australian Trade Commission (Austrade) is developing a targeted program for each of the companies including appointments with key influencers and potential customers and partners. If you would like to learn more about the delegation's program in Richmond or would like to schedule a meeting with one of the Canberra companies, please contact Mark Myrick via email mmyrick@yesvirginia.org or telephone (804) 545 5755.

Virginia companies wishing to take advantage of the thriving Australia market are in luck! The Division of International Trade is leading a trade mission to Australia & Japan September 22nd to 26th. For more information, contact mission leader Diane Thomas, International Trade Manager at (276) 623 -1536 or DThomas@yesvirginia.org. Click here to view the event flyer.

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The Doha Trade Talks: Boom or Bust for Virginia Exporters?

Launched in late 2001, the WTO’s current round of talks is aimed at further liberalizing world trade, with special attention to the needs of developing countries. Fraught with the difficulties inherent in reaching agreement among 151 sovereign countries with varying degrees of economic development and political will, the final outcome of this latest round of multilateral talks will either boost global trade or fail dismally, buttressing criticism of the WTO structure. After six years, the talks have reached a critical point. If the system is to survive, the Doha negotiations must be completed by the end of this year with concrete results that improve market access for agricultural goods, industrial goods, and services. While the parameters of a final deal remain largely unclear, based upon the general commitments made thus far, Virginia exporters (as well as U.S. exporters, in general) stand to benefit from more open markets.

Agriculture Negotiations
By far, the most complex and contentious area of negotiations has been with respect to rules governing agricultural trade. Generally speaking, agricultural goods are subject to high tariffs and farmers worldwide receive billions of dollars in government-sponsored subsidies to stimulate domestic production and exports of agricultural goods. Coupled with the fact that agriculture tends to be a highly sensitive and politicized area tied to issues such as food security and poverty, garnering commitments among the WTO Members to lower tariffs and reduce/eliminate agricultural subsidies is a Herculean endeavor. Nonetheless, that is precisely the objective of the Doha Round – achieve significant liberalization in agricultural trade.

Although the agriculture negotiations remain far from complete, the WTO Members have reached conditional agreement on certain general outcomes. Developed countries, such as the U.S. and Europe, have committed to cutting their domestic subsidy levels to farmers, and there is a general framework on the range of tariff cuts that will apply to agricultural goods. Although both developed and developing country members can invoke certain flexibilities to shield “sensitive products” from application of the tariff reductions, for the most part, there will be market-opening changes in the rules that govern agricultural trade. For Virginia exporters, completion of the talks should lead to greater access to several export markets – particularly those that are not U.S. trading partners under bilateral free trade agreements.

Non-Agricultural Market Access (NAMA) Negotiations
Reaching agreement on tariff cuts on industrial goods has also been controversial, particularly because several developing country Members have linked their commitments on industrial goods to developed country commitments on agricultural goods. The goal remains, however, to improve market access for industrial goods worldwide by eliminating and/or substantially reducing tariff levels applied to such goods. Pushed by powerful private sector groups such as the National Association of Manufacturers, the U.S. has stood firm on its position that the NAMA talks must lead to significant tariff cuts and generate “meaningful” market access for U.S. goods. Many U.S. manufacturers have targeted Brazil and India as among the “priority” markets where they want to see substantial tariff reductions.

Should the NAMA talks conclude, Virginia exporters may observe real tariff cuts in their industrial goods exported to markets such as Brazil, India, and Argentina. Notably, the resulting tariff levels will be “bound” rates, meaning that WTO Members will be required to cap tariff levels at rates resulting from the tariff reductions. For companies exporting to Brazil, this change will greatly improve the current situation where Brazilian tariffs change frequently.

Services Negotiations
The services negotiations have proceeded on a slightly different schedule. Under the General Agreement in Trade in Services, WTO Members committed to successive rounds of negotiations to liberalize trade in services. Services negotiations have proceeded on this schedule since 2000, with the talks leading to specific commitments in basic telecommunications and financial services. Upon initiation of the Doha Round, it was envisioned that the services negotiations would continue. However, the services talks have languished as WTO Members grapple with the more contentious areas of agriculture and industrial goods.

Unlike the agriculture and NAMA talks where agreement is reached on a general framework, services talks are accomplished by WTO Members putting forth areas where they make certain commitments to open their markets in specific services sectors. Sectors currently under discussion include a broad range of areas of interest to Virginia exporters. They include (but are not limited to) financial services, architectural, engineering and integrated engineering services, maritime transport services, construction services, distribution services, and environmental services. Given the slow pace at which the services negotiations have proceeded, it is difficult to predict areas where Virginia exporters can anticipate more open markets. However, the U.S. has remained adamant that concrete commitments in the services areas are an important component in the final deal.

Trade Facilitation Negotiations
A less sensitive but equally important area of negotiation has been the trade facilitation talks. Among other objectives, these negotiations have aimed at clarifying rules governing customs fees and charges, publication of trade regulations, achieving multilateral cooperation on customs compliance issues, and providing technical assistance to developing countries to build capacity in the administration of their customs systems. For exporters, these trade facilitation talks are incredibly important because they have the potential to significantly reduce the "red tape" and other obstacles that many exporters face when trying to clear their merchandise through the customs process in a foreign market.

Positive inroads have been made in the talks with WTO Members agreeing to binding commitments in several areas, such as posting trade regulations on the Internet. The talks have proceeded with a true spirit of cooperation. The trade facilitation talks have been so successful that some have advocated a separate text to codify the outcome should the negotiations fail in the other areas of the Doha talks.

Karen Bland is the President of Vanguard Business Solutions, LLC, (VBS), an international trade consulting firm headquartered in Hampton Roads. If you have any questions about this article or how VBS can help your business, contact Karen at (757) 224-2886 or kbland@vanguardbizsolutions.com.

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The Importance of Developing a Vision to Successfully Expand Internationally

Over the past thirty years, the speed of globalization and world trade has expanded at an accelerated pace making it difficult for small-to-medium sized entities to keep up. Such an environment makes it critical to establishing a strategic plan that contains your company’s vision and expansion initiatives.

In order to export successfully, small-to-medium sized enterprises (SMEs) must develop a vision and a strategy for entering and staying in foreign markets. A SMEs’ vision can be developed by identifying its core competencies. Currently, over 4,000 manufacturing and 1,200 service companies in Virginia export on an annual basis. Manufacturing companies export $11.6 billion dollars annually while service companies export $6.5 billion. The majority of the value of export shipments go to Canada and China, while the fastest growing export destination is Portugal, to which Virginia exported 410% more than the previous year. Overall, small-to-medium sized business account for the majority of the overall increase seen in new exporters in the United States and make up 97% of all U.S. exporters. Moreover, as the dollar weakens, overseas sales of U.S. products will strengthen and more firms will be enjoy an increased position in international markets.

It is important to define your company’s core competencies, which will serve as the basis of your vision. A business’s core competencies are its unique products and/or services that it can leverage. If a firm does not have a core competency, one must first be cultivated. Core competencies are critical because they are firms’ inherent advantages in international trade via comparative advantages. When a firm has a comparative advantage—or a cost or differentiation advantage—it means that it has a product or service that is not easily replicated in terms of price or form. In addition, a firm’s core competency is vital to its international export plans, as core competencies not only provide trading advantages, but also because they are vital in developing a business vision.

In developing a vision, strategic managers should brainstorm about where they want their company to be in the future and how they want to get there by setting goals for the immediate future. These goals include leveraging the agreed-upon core competencies, and setting specific targets for what the company’s revenue size and growth should be in order to remain sustainable. The vision should further specify the company’s intended market position—whether it plans to have a limited geographic focus or whether it plans to become an international player in the export market. The standard timeline for a vision is 3 years for technically related companies and 5 for manufacturing or traditional ones.

A firm’s vision is essential to its survival during expansion. A vision provides a strategic framework and is extremely helpful because it specifically outlines a business’s path. Expressing its goals via strategic plan is highly beneficial because firms can plan and develop implementation strategies early and preemptively, which is important for international expansion.

SMEs would thoroughly benefit from predetermining their target markets—i.e. who their exporting targets would be, which should in turn be determined by where the SMEs have the greatest cost and differentiation advantage. Also, SMEs should determine, based on their cost structures and ability to bear risks, what their mode of market penetration should be. As many SMEs are, by definition, smaller and not able to benefit from economies of scale, they should choose entry methods which minimize costs and mitigate risks. Accordingly, SMEs should strongly consider penetrating international markets by exporting, licensing, or engaging in joint ventures as these types of entry typically involve less investment and low risks. In order to determine which of these entries, strategic managers be wary of and must analyze trade barriers such as tariffs and quotas, overseas patent protection, and partner-risk.

A vision is important for every company because it serves as a guide for strategic initiatives. It is a platform upon which companies can build business cases and rationales over others. Accordingly, managers can build and implement plans around a vision and can even use it as a litmus test while analyzing different scenarios—it can, for example, be used as a useful mechanism to vet strategies in different markets. Clearly, then, because a vision is such a valuable tool, it must be carefully constructed. Strategic planners should care, though, to ensure that a vision in implemented with some flexibility. After all, if used appropriately, a vision is a dynamic statement that should be annually revisited.

For additional information on international expansion and strategic planning contact Capstone Strategic, Inc. at 202-776-0500.

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Events & Trade Missions

To view all 2008-2009 events, click here

Trade Mission to Czech Republic & Hungary

Start Date: June 16, 2008
End Date: June 20, 2008

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Farnborough International 2008

Start Date: July 14, 2008
End Date: July 20, 2008

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Trade Mission to Ukraine & Romania

Start Date: September 22, 2008
End Date: September 26, 2008

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Trade Mission to Australia & Japan

Start Date: September 22, 2008
End Date: September 26, 2008

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60th Virginia Conference on World Trade

Start Date: October 15, 2008
End Date: October 16, 2008

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Trade Mission to Canada - Toronto & Montreal

Start Date: October 27, 2008
End Date: October 31, 2008

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Poleko Trade Show and Poland Trade Mission

Trade Show Dates: October 27 - 29, 2008
Start Date: October 29, 2008
End Date: October 31, 2008

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Trade Mission to Mexico

Start Date: November 3, 2008
End Date: November 7, 2008

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Trade Mission to Vietnam

Start Date: November 3, 2008
End Date: November 7, 2008

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Trade Mission to Saudi Arabia & TBD

Start Date: November 15, 2008
End Date: November 18, 2008

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Read about hot markets for the environmental technology industry in our Fast Fact!

Click here to view all FastFacts

Here are a few of this week's trade headlines.

	Virginia Port Authority wants to increase trade with Morocco The Virginia Port Authority is looking to boost trade between Hampton Roads and Morocco, an important North African hub along a heavily traveled trade route.
	U.S. exports help prop up sour economy Not every part of the nation's economy is sagging, despite all the grim news: Exports are surging.
	U.S. worker productivity grows unexpectedly Worker productivity rose by a better-than-expected amount in the first three months of the year while labor cost pressures eased.
	UAE seeing the world through green eyes While the affects of global warming have been an issue of increasing concern for countries around the world for some time now, it's only recently that people and businesses in the UAE have begun to see the world through green eyes.
	India to become 8th wealthiest place by 2017: Barclays India with its increasing number of millionaires is projected to be in the 8th position among the world's top 10 wealth centers by 2017, says a report by banking giant Barclays.

Click here to view all world news headlines

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"GATEWAY INDIA 2008: Opportunities, Risks, and Rewards in Investing in India"
May 15, 2008, 6:30 pm - 9:00 pm, Crowne Plaza Hotel, 555 East Canal Street, Richmond.
The Virginia Asian Chamber of Commerce hosts the 3rd international trade and investment forum. Topics to include: how to create jobs in Virginia by doing business and investing in India; learning how to export/import, and creating joint venture and partnerships in India. Come to learn about the legal and cultural aspects of doing business in India, and Indian Business Protocol. Speakers: Mr. Anoop Mishra, Minister of Economic Affairs, Embassy of India, Dr. Nat Ganesh, Vice President, Process Excellence, of Deloitte (India), & Charles Green, Global & Domestic Marketing Director, VA Department of Agriculture and Consumer Services. For more information or to register please visit: www.aabac.org

Experts Village at Futurallia Québec 2008
May 20-22, 2008; Quebec City Convention Centre
Futurallia Quebec 2008 will become the key economic event of Quebec City's 400th anniversary celebrations. At this unique event, we expect to welcome 1200 business leaders from more than 20 countries and more than 8000 pre-programmed meetings. At the heart of Futurallia, the Experts Village brings together specialists in international business in order to provide export counselling and services for the 1200 companies participating at the forum and so encouraging successful partnerships. For more information, please visit: http://www.futuralliaquebec2008.com/an/concept/an_contexte.htm

Richmond Export Import Club World Trade Day Luncheon
May 23, 2008; The Jefferson Hotel, Richmond, VA
Please join the Richmond Export Import Club as celebrate their 2008 World Trade Day. Bruce Thomas, Sr. Vice President, Global Market Strategy and Emerging Markets, MeadWestvaco, will be speaking on current globalization trends in the market today. This event is $35 for members and $45 for non-members. For more information or to register please visit: http://www.richmondexportimportclub.com/.

National Maritime Day 2008
May 23, 2008; Half Moone Cruise & Celebration Center, Norfolk, VA
The Norfolk Propeller Club along with the Hampton Roads Shipping Association, Nauticus, Maritime Institute - Old Dominion University, U.S. Maritime Administration, Virginia Maritime Association, Virginia Port Authority, and the Virginia Ship Repair Association are proud to announce our signature event celebrating National Maritime Day. Sean T. Connaughton, Maritime Administrator, U.S. Department of Transportation, and keynote speaker will share his views on "MARAD Initiatives and their Impact on our Economy". For further information or to purchase tickets please go to http://www.vamaritime.com/event-repo/nmd08.

Business Opportunities in Africa Seminar
June 4, 2008, 9:00 am – 11:00 am; VEDP Offices, Vienna, Virginia
The VEDP and the Ex-Im Bank will be hosting a seminar focused on business opportunities in Africa, specifically infrastructure needs and South Africa. John Richter, director for Africa at Ex-Im Bank and the former director for Africa at US Trade and Development Agency, will be leading this initiative. For more information or to register, please contact Jenee Andreev, International Trade Manager with the VEDP at jandreev@yesvirginia.org.

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How to keep overseas cell phone costs down

When in Rome, do as the Romans do. Switch out your SIM card -- the little chip in the phone that carries your account information -- for a prepaid local one, and pay local rates.

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"The VALET program offers expertise in so many business facets. If they do not know the answer immediately, they are able to find someone who does."

Vice President
Fuel & Chemical Storage Industry

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Send comments or feedback to the editor at TNoll@yesvirginia.org.

DISCLAIMER – The contents of this newsletter are intended to provide pertinent information for Beyond Virginia subscribers interested or already involved in international trade. While every effort is made to convey accurate and timely information, the contents of this newsletter are not intended as specific advice to its readers. Our intent is solely to convey information.

PRIVACY POLICY
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