Why Should You Export?

95% of the world’s consumers are outside of the

U.S.

Exporting helps to diversify your client base

and take advantage of regional growth

If you are not exporting, it’s highly likely your

competitors are selling abroad or will be soon

Free trade agreements, the Internet, improved

transportation, and Government assistance
 Economic Impacts of Exporting
• Exports help diversify the U.S. economy
• U.S. manufactured exports support
6,000,000 American jobs
• Trade generates $9,000 more in
purchasing power for the average
American family

• Companies that export are 8.5%

less likely to go out of business

• Jobs related to exports pay 15% more

 Market Diversification

• Extend product life cycles

• Counter unstable economic

markets

• Ability to maintain production

year-round
o Seasonal differences
o Consistent sales
 Exporters Are Small Business

97% of U.S. exporters are

SMEs with < 500 employees

75% of exporters have < 20

employees

7 in 10 new U.S. jobs are

created by small businesses
 Hawaii’s Top Exports
Tourism Services Cosmetics / Skin Care

Education & Training Environmental Technologies

Agriculture & Processed Foods

 Hawaii’s Top Exports
Hawaii Exports Based on Origin of Movement
US Dollars % Share %Δ 08/07
HTS Description 2008/200
2007 2008 2007 2008
7
22 Beverages 42,204,853 37,569,727 7.54 3.9 -10.98
18 Cocoa 15,944,232 16,599,114 2.85 1.72 4.11
9 Spices/Coffee And Tea 7,304,677 7,018,267 1.3 0.73 -3.92
76 Aluminum 7,361,090 6,900,668 1.31 0.72 -6.25
12 Misc Grain/Seed/Fruit 3,805,825 5,133,636 0.68 0.53 34.89
20 Preserved Food 4,553,234 5,068,279 0.81 0.53 11.31
10 Cereals 1,486,206 3,281,321 0.27 0.34 120.79
42 Leathr Art;Saddlry;Bags 2,862,885 2,978,381 0.51 0.31 4.03
95 Toys And Sports Equipmt 2,413,336 2,872,111 0.43 0.3 19.01
33 Perfumery/Cosmetic/Etc 2,720,209 2,654,592 0.49 0.28 -2.41
93 Arms And Ammunition 5,645,967 1,850,516 1.01 0.19 -67.22
30 Pharmaceutical Products 1,852,556 1,761,063 0.33 0.18 -4.94
91 Clocks And Watches 1,010,997 1,681,710 0.18 0.17 66.34
 Hawaii Export: Coffee
Who is buying? Top Global Importers
Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes

United States Dollars

Rank Reporting Country
2006 2007
Reporting Total 14,297,492,235 17,053,983,357
1 Germany 2,346,555,380 2,780,324,135
2 France 922,715,741 1,135,345,616
3 Italy 871,668,372 1,091,582,381
4 Japan 990,582,099 1,007,536,566
5 Belgium 576,881,197 616,942,661
6 Canada 633,235,711 681,828,070
7 Spain 485,158,540 615,529,732
8 United Kingdom 420,201,477 481,947,242
9 Switzerland 252,695,531 326,401,485
10 Austria 267,985,342 386,423,340
 Hawaii Export: Coffee
Where is U.S. coffee going? Top U.S. exports
Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes
Partner US Dollar % Change
Ranking
Country 2007 2008 2008/2007

World 544,540,906 617,324,345 13.37

1 Canada 402,913,519 455,420,320 13.03
2 Japan 44,294,196 55,704,640 25.76
3 Russia 233,570 23,024,121 9757.48
4 Singapore 11,451,807 13,562,164 18.43
5 China 10,656,153 13,014,006 22.13

6 Germany 35,747,261 12,714,003 -64.43

7 South Korea 5,923,339 9,627,450 62.53

8 Mexico 3,355,982 5,678,248 69.2

9 Taiwan 1,996,288 3,645,264 82.6

10 Bermuda 1,581,979 1,694,163 7.09

 Hawaii Export: Coffee
Where is Hawaii coffee going? Top HI exports
Commodity: 0901, Coffee, Coffee Husks & Skins, Coffee Substitutes
    US Dollar % Change

Rank Country 2007 2008 2008/2007

7,117,465 6,966,482 -2.12

World
1 Japan 5,530,968 5,050,100 -8.69

2 Sweden 1,212,584 1,244,283 2.61

3 Canada 91,023 317,836 249.18

4 Germany 204,835 249,702 21.9

5 South Korea 28,838 49,679 72.27

6 United Kingdom 0 18,000 0

7 Taiwan 32,901 10,169 -69.09

8 Australia 12,566 10,112 -19.53
9 Finland 0 9,277 0
10 France 0 4,800 0
 Hawaii’s Best Export Markets

Industry Sector
Architecture & Engineering Services • • • • • • • •
Cosmetics & Skin Care • • • • •
Educational Services • • • • • • •
Renewable Energy Equipment • •
Travel & Tourism Services • • • • • • • • •
Water Resources Equipment • • • • • • • •
Japan China India Australia South Korea Malaysia Hong Kong
Leveraging Free
Trade Agreements
 Free Trade Agreements

• FTAs help open foreign markets

o Reduced trade barriers
(tariffs, quotas, etc.)
o Strengthen legal protections

• Promote fair competition

• Address trade issues
• Bring costs down for U.S. consumers
 Free Trade Agreements
Topics of FTA Negotiations
• Opening Sectors to Competition
• Improving IPR Protections
• Enhancing Labor Rights
• Dispute Settlement
• Environmental Standards
• Government Procurement
• Enhancing Investment Rules
• Improving Customs Facilitation
Free Trade Agreements
Free Trade Agreements

ISRAEL JORDAN
 Free Trade Agreements
Country 2007 MMUSD 2008 MMUSD Percent Change
NAFTA 332,499 353,931 6.45%
Canada 213,118 222,424 4.40%
Mexico 119,381 131,507 10.20%
CAFTA-DR 21,274 23,922 12.45%
Costa Rica 4,224 5,047 19.50%
Dominican Rep 5,793 6,293 8.60%
Guatemala 3,872 4,493 16.00%
Honduras 4,327 4,699 8.60%
Nicaragua 846 1,030 21.70%
El Salvador 2,209 2,357 6.70%
Australia 17,916 20,948 16.90%
Bahrain 565 779 37.80%
Chile 7,610 11,366 49.40%
Israel 9,940 10,238 3.00%
Jordan 831 904 8.70%
Morocco 1,333 1,506 12.90%
Oman 1,034 1,380 33.40%
Peru 3,764 5,686 51.10%
Singapore 23,576 25,655 8.80%
Total 420,348 456,319 8.60%
 Free Trade Agreements

U.S - Korea FTA, Pending

• Model for new Asia FTAs

• 95% of U.S. consumer & industrial

products will enter duty-free

• 67% of agricultural exports will

be immediately duty-free

• Remaining tariffs eliminated <10 years

• Hawaii: agricultural / food products, tourism

 Are You Export Ready?
• Domestic Success?

• Production Capacity?

• Financial Resources?

• Management Commitment?

• International Plan with Goals?

• Know-how? (shipping & methods of payment)

 Common Export Mistakes

• Lack of Export Business Plan

• Low commitment to exporting

• Neglecting export customers

for local customers

• Reliance on inadequate partnerships

• Failure to modify products & methods to accommodate

foreign regulations and preferences
 Determine Product Potential

• Examine Domestic Market Success

• Assess Unique or Important

Product Features

• International Market Research

• Where are International Hits

Coming from on your Website? Target markets?
• Where are Your Competitors Selling?
 Develop An Export Strategy
Focus Your Efforts!
• Be PRO-ACTIVE & REALISTIC
about your ability to expand

• Define your resource limitations

(money, personnel, and time)

• Identify a few target markets

• Evaluate target markets, customers, distribution channels

• Evaluate future profits & opportunities to expand business

• Develop an entry strategy for each market

Basic Guide to Exporting

• How to identify the best markets

• Financing export transactions
• Best methods to handle orders
and shipments
• Case studies of successes
• Sources of free or low-cost
export counseling
• $19.95 online @ www.export.gov