Trade development: taking it to market - Clinton Administration's trade promotion initiatives and programs

In addition to aggressive efforts in trade policy, the Clinton Administration is also using a variety of trade promotion initiatives to encourage U.S. telecom exports and ensure U.S. telecom firms equal access to foreign markets. These initiatives target both emerging telecom markets with enormous potential, including China, Russia, and Latin America, and established markets that are viewed as critical to the international marketing strategies of U.S. telecom firms, such as Japan and the European Union.

To assist American telecom businesses in their export efforts, the Commerce Department has a number of trade promotion programs designed to assist small- to medium-sized companies in exporting their products and services abroad. The following programs are among the vehicles used to help introduce American products to foreign markets:

Trade missions are overseas events planned, organized, and led by Commerce Department officers which bring U.S. business persons into contact with potential foreign buyers, agents, distributors, licensees, franchisees, or joint-venture partners. Trade missions target specific countries or groups of countries with promising export opportunities. Participants are provided with detailed marketing information, advanced planning and publicity, logistical support, and prearranged appointments with potential buyers, government officials, and others.

Seminar missions are overseas events planned and organized by the Commerce Department to promote the sale of U.S. products and services through presentations by participants to potential foreign buyers, agents, distributors, licensees, franchises, or joint-venture partners in a seminar forum. Qualified, decision-making company executives present state-of-the-art or problem-solving papers that are not oriented to any particular company.

Reverse trade missions are visits to the United States by high-level foreign government officials to meet with U.S. industry and government representatives. These foreign officials represent procurement authorities for specific projects interested in purchasing U.S. equipment and services. Reverse trade missions are usually cofunded by U.S. industry.

Trade fairs and exhibitions are overseas trade shows sponsored, conducted, and managed by the Commerce Department or a private show organizer in which there is a USA pavilion to showcase U.S. products and services. Selection priority is given to events in viable markets that are suitable for new-to-export or new-to-market "export ready" firms. Exhibitors receive pre- and post-event logistical and transportation support, design, and management of the USA pavilion, and extensive overseas market promotional campaigns to attract appropriate business audiences.

Product literature centers are designed to provide low-cost opportunities for U.S. firms, typically small- and medium sized infrequent exporters, to make sales and representation contacts, generally in smaller markets where other promotional vehicles may not be available. These centers display American product catalogs, sales or company brochures, and similar graphic sales aids organized to promote interest in and the sale of U.S. products and services abroad. Product literature centers are a low cost and efficient way to get worldwide sales leads. All leads are sent directly to the product literature center participant.

If you have questions regarding any of the above cited programs, or wish to have your company listed in our export contact database, contact Alexis Kemper at tel: (202) 482-1512, fax (202) 482-5834.

Regional Focus Groups. In addition to the events detailed above, the Commerce Department maintains a number of focus groups designed to facilitate trade in telecommunications with specific regions. The following are some of these initiatives:

* U.S. high-technology companies have a strong interest in

the significant potential of Russia's equipment and services

markets, and many U.S. firms are exploring these

opportunities. Along with the markets' potential, however,

there are associated risks. To facilitate market opportunities

and eliminate market barriers, a telecommunications

subgroup was-created under the U.S.-Russia Business

Development Committee. The chief goal of the subgroup

is to provide U.S. and Russian government backing for the

expansion of bilateral commercial relations in

high-technology industries. The subgroup is designed to play a

significant role in identifying and implementing mutually

profitable trade and investment opportunities in

high-technology areas, as well as supporting the establishment of

an information technology infrastructure in Russia.

Subgroup activities include: 1) information collection and

dissemination on commercial opportunities, 2) trade

promotion events such as trade missions, reverse trade missions,

and conferences, and 3) programs to expose Russian

officials to U.S. standards, testing and certification, and

procurement policies. For more information, contact Jason

Leuck at tel. (202) 482-4202.

* A new U.S.- China Business Development Subgroup for

Telecommunications Facilities and Equipment was recently

created under the umbrella of the U.S-China Joint

Commission on Commerce and Trade by the Commerce

Department and China's Ministry of Posts and

Telecommunications. The principal goal of this telecom

subgroup is to promote commercial relations and bilateral

trade between the United States and China in the

telecommunications facilities and equipment sector with a view

towards expanding economic and trade cooperation. A key

activity of this subgroup is promoting our commercial

relations by developing, implementing, and supporting an

appropriate work program of trade missions, exhibitions,

seminars, conferences, meetings, and similar events. The

telecom subgroup will also address issues that may hinder

or limit commercial relations and U.S.-Chinese trade in

telecom equipment. For more information, contact Nathaniel

Cadwell at (202) 482-0399.

* Telecom is one of five sectors targeted by the "Showcase

Europe" strategy, which emphasizes new, regional

approaches to trade promotion and advocacy in Europe. The

first telecom event under Showcase Europe was a

public/private seminar in Geneva on opportunities in

Greater Europe, which took place during Telecom `95 in

October 1995. The next event will be a Europe-wide

Foreign Buyer Program at the CeBit trade fair in Hannover,

Germany, during March 1998. Showcase Europe is

encouraging U.S. firms to focus on non-traditional markets

(besides the United Kingdom) as European telecom

liberalization creates new opportunities. A sub-regional telecom

trade mission to the European Sun Belt (Italy, Spain, and

Portugal) is planned for early 1998. For more information,

contact Myles Denny-Brown at (202) 482-0398.

U.S. Government Advocacy. Appropriate and expeditious support provided by the U.S. Government to American companies bidding for major overseas sales/contracts -- is a major component of the Clinton Administration's National Export Strategy.

Why is advocacy so important? Our competitors in international markets often resort to political or economic pressures to assist their firms marketing abroad. Evidence indicates that third-country governments often respond favorably to bids from American firms when the U.S. Government makes representations to counter aggressive foreign government lobbying for international contracts.

Commerce has taken several steps to expand advocacy over the past few years, including establishing a network to facilitate advocacy initiatives and developing guidelines which aid in deciding when and how to advocate. We have advocated successfully on behalf of numerous U.S. telecom firms in recent years. Some examples include Lucent Technologies in Russia, Motorola in Hungary, and DSC Communications in Mexico. See advocacy success story on page 25.

The U.S. telecommunications industry has no intention of ceding its world leadership in telecom technology and expertise. Through state-of-the-art research and development programs, cutting edge production techniques, intelligent marketing strategies, and time-tested network management skills, the U.S. telecom industry will continue in its leadership role into the next century. The U.S. Government stands ready to provide assistance when needed.

COPYRIGHT 1997 U.S. Government Printing Office
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