INTRODUCING UTAH GLOBALISTS:

Doug Clark and the Utah International Trade and Diplomacy Office

By Erin Stewart
Freelance Writer

Gov. Jon Huntsman Jr.’s inauguration in 2005 brought with it a new economic era for the state and an international focus on four key countries: Canada, Mexico, China and India.

State leaders at Utah’s International Trade and Diplomacy Office (ITDO) have taken Gov. Huntsman’s economic plan to heart, completing trade missions to each of the four key countries this year. In fact, the four countries have been the only areas the office has visited in the past two years on trade missions, says Doug Clark, managing director of business growth in the ITDO.

“India and China are the game in international trade right now. That’s where everything is going,” Clark says. “If it’s good for every other country in the world, it’s good for us as well. These are huge markets that could provide a lot of synergies with our own economy.”

While Clark says his office aims to open trade with any countries in which Utah companies want to do business, Huntsman’s top four regions are logical choices to expand Utah trade. Canada’s and Mexico’s proximity make them prime partners, while India and China have growing reputations in the international business scene that make them attractive to Utah companies, as well.

The ITDO has been working hand-in-hand with Utah companies and with the World Trade Center Utah to send entourages of business, education and government leaders to the four countries. Most recently, state representatives returned from a trade mission to India that was a “smashing success,” Clark says.

“India is the future for us. India and China are going to be very important for us,” Clark says. Currently, India is not even in the top 20 of Utah’s major economic partners in terms of exports, but state leaders hope that will change. Utah’s largest partners are Great Britain – topping the list with $2 billion in Utah exports in 2006—followed by Canada and Switzerland.

Trade missions aren’t the only product of the ITDO, however. The diplomacy piece of foreign trade is just as important as signing contracts, Clark says. In many countries like China, time-tested relationships with government leaders are needed before becoming solid business partners.

“There’s a pure diplomatic side where we host delegations for the governor. The other role of diplomacy is to build critical awareness for Utah and reputations for Utah companies,” he says.

Education is also a central part of fostering trade relations with foreign countries, Clark adds, so the ITDO sponsors seminars to teach local business owners about foreign customs, trade nuances and specific foreign markets. “The idea is to get people a basic understanding of trade in that country and basic business and cultural issues,” Clark says.

This spring, for example, those seminars focused on countries such as China, India, Korea and Japan in an effort to prepare Utah companies for trade missions this Fall. The ITDO also has trade representatives around the world to help Utah companies understand the needs of a foreign market and how to break into it. “They are the people on the ground overseas. They are the subject matter expert of that country,” Clark says.

In addition, the office plays an advisory role for Utah companies. Regional directors with the ITDO help prepare international strategies and business plans for companies hoping to branch out into the international scene. That expertise will only grow thanks to the relationship with the World Trade Center of Utah, Clark adds. Leaders from both groups meet weekly to compare leads, agendas and information. “It’s a very positive, close relationship here. We are excited about the international trade center being formed and believe that it will bring a lot of capabilities and new opportunities to the state,” Clark says.

Utah’s growing appeal as a domestic business community has set the stage to forge more international relations as well, Clark says. In particular, Utah’s workforce is garnering attention as a place for foreign companies to set up shop. “We’re a well educated, hard working, smart working workforce. We have a competitive cost structure, indescribably good quality of life and geographic advantages as a natural distribution center,” he says. Moreover, Utah boasts a governor who speaks fluent Mandarin and a high percentage of residents who speak a second language and have some living experience outside of the United States.

“Utah companies are not only competing with American companies, but with foreign companies,” Clark says. “Competition is global. You’ve got to compete globally or you won’t be in business.”

Clark’s experience with international business began as a lawyer in Washington, D.C., where he handled export assistance cases. After moving to Utah eight years ago to co-found a secure Internet transactions company called NxLight, Clark joined Huntsman’s campaign and subsequently helped co-author Huntsman’s 10-point plan for economic revitalization. In his spare time, Clark enjoys running marathons and kayaking, although his kayaks have been “collecting a little bit of dust” since moving to Utah, he says.

INTERNATIONAL TRADE

Export.Gov's Market of the Month

Country:  Chile

Chile goes from deserts in the north to the arctic conditions of Tierra del Fuego, and from the majestic Cordillera de Los Andes, with the tallest peak in the Western Hemisphere at 22,000 feet, to the Pacific Ocean. This is one of Latin America’s most open countries, with a stable and attractive market. Its strengths include sound economic policy-making, a transparent regulatory system, an educated workforce and good basic infrastructure. Prudent economic policies and an open attitude toward trade and investment have provided Chile with stable long-term growth.

Since the U.S.-Chile Free Trade Agreement (FTA) came into force on January 1, 2004, bilateral trade between the United States has increased over 154 percent.

Chile ended 2006 ranked as the 28th largest export market for the United States, climbing from 29th place in 2005, 30th place in 2004 and 35th place in 2003. The United States was the top source of Chile’s imports for 2006 and remained the top destination for Chile’s exports.

U.S. exports to Chile in 2006 increased by $4.07 billion over exports in 2003, growing from $2.72 billion to $6.79 billion, or by 150 percent. Chile has also benefited tremendously from the FTA; U.S. imports from Chile grew from $3.71 billion in 2003 to $9.56 billion in 2006, an increase of 158 percent.

Chile’s economy grew by 4.3 percent in 2006. The Central Bank of Chile projects 2007 GDP growth of over 5 percent.

Chile has maintained a low rate of inflation, with GDP growth coming from high copper prices, solid export earnings (particularly forestry, fishing, and mining), and growing domestic consumption. Chile continues to attract foreign direct investment, but most foreign investment goes into gas, water, electricity, and mining. Unemployment has exhibited a downward trend over the past year, dropping to 7.8% at the end of 2006. Chile also signed or ratified a number of trade agreements in 2006, including with China and India. Chile claims to have more bilateral or regional trade agreements than any other country. It has 57 such agreements (not all of them full free trade agreements), including with Chilean government bidding procedures.

Best Prospects

• Construction (ACE/CON/BLD)
• Computer Hardware/ Software/ Services (CPT/CSF/CSV)
• Electric Power Equipment (ELP)
• Financial Services (FNS)
• Food Processing/ Packaging Equipment (FPP)
• Franchising (FRA)
• Healthcare/ Medical Equipment (HCS/ MED)
• Mining Equipment (MIN)
• Plastics Machinery/ Materials/ Resins (PME/PMR)
• Pollution Control/ Water Treatment/ Environmental Services (POL/WRE)
• Safety and Security Equipment (SEC)
• Telecommunications Equipment/ Services (TEL/TES)

Click here to read more.

SLC Firm Named 'Best Foreign Exchange Broker'

Salt Lake City's Interbank FX, an online Futures Commission Merchant (FCM), has been named Best Foreign Exchange Broker at Shares magazine’s 2007 Shares Awards. The winners were announced Thursday, Nov. 29, 2007, at a gala dinner at the Grosvenor House Hotel in London, according to a press release published by Utah Business Magazine.

BYU Students Place First at Center for International Business Education and Research Case Challenge

The Enterprise newspaper reports that After spending a continuous 24 hours developing an international business strategy, an undergraduate team of management students from Brigham Young University placed first at the Center for international Business Education and Research Case Challenge. The BYU team beat students from other top international business programs including Universita Bocconi in Italy, Instituto Tecnologico Autonoma de Mexico and Audencia Nantes Ecole de Management in France.

TRADE FACTS

Source: International Trade Administration

- Ninety percent of all U.S. exporters to China in 2005 were small- and medium-sized enterprises (SMEs).

- The number of small- and medium-sized enterprises (SMEs) that exported to China in 2005 totaled over 21,000—up from approximately 3,000 SMEs in 1992.

- In 2006, China was the United State’s second largest trading partner globally and our largest in Asia, with bilateral merchandise trade of $343 billion.

- The United States is already a leading source of Korea’s imports, with an 11 percent market share. Despite close proximity to other competitive Asian economies such as China, Japan and the rest of the Asia Pacific group, the high quality and wide selection of competitively priced U.S. products provide U.S. exporters with a distinctive edge, one which will be enhanced under the tariff elimination provisions of the U.S.-Korea Free Trade Agreement.

Send Us Your Calendar Items and Newsletter Suggestions

Do you have a Utah-related international calendar item, story, or content suggestion? We welcome your input. Please feel free to email your information to Exoro International.

Subscribe or Unsubscribe