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Trade

Promotion

Policies

November 23

2015 This report contains foreign trade promotion initiatives in 8 developed

countries. All the policies are listed country wise, described in detail

with special focus on MSMEs.

Foreign Trade

policies of

developed

countries

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CONTENTS

Acknowledgement…………………………………………………….…3

Executive summary…………………………………………………........4

Introduction………………………………………………………………5

Singapore Policies……………………………………………………......5-11

South Korea policies……………………………………………………..12-17

Germany policies………………………………………………………...18-20

Australia policies…………………………………………………………21-23

Taiwan policies…………………………………………………………...24

USA policies……………………………………………………………...25-32

UK policies…………………………………………………………… ….33-37

China policies……………………………………………………………..38-39

References………………………………………………………………...40-41

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ACKNOWLEDGEMENT

We wish to express our sincere gratitude to Mr. Nagendra Nath Sharma for providing

us an opportunity to do our short term project in “FEDERATION OF MICRO

SMALL AND MEDIUM ENTERPRISES.”

We sincerely thank Mr. Anil Bhardwaj & Mr. V N Sastry for their guidance and

encouragement in carrying out this project work. We also wish to express our

gratitude to the officials and other staff members of Federation of Micro Small and

Medium Enterprises who rendered their help during the period of our project work.

ABHISHEK BANSAL AAYUSH MAKKAR

PGDM-(International Business) PGDM-(International Business)

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EXECUTIVE SUMMARY

This report tells about the foreign trade policies of eight developed countries which are USA,

UK, Australia, China, Taiwan, Germany, Singapore, and South Korea. These countries uses

different policies to promote exports so that exporters (specially small and medium

enterprises) of that country can get maximum benefit out of the policies, because of these

policies maximum export happens in these counties. Policies of each country is very much

different from policies of other country depending upon the need. All polices can be seen in

the matrix.

Result of these research shows that foreign trade policies of eight different counties can be

categories in 13 headings which are as follows:

1. Exhibition support

2. Capability building

3. Export assistance to foreign companies

4. E-export assistance

5. Marketing research by country type

6. Single website assistance

7. Overseas market assistance

8. Enhancing competitiveness

9. Financing

10. Export credit insurance

11. Tax benefits

12. Market research by industry type

13. Miscellaneous

This report tells about what policies India should adopt from these eight developed countries

so that they benefit Indian exporters (especially small medium enterprises) to export. At

present Indian foreign trade policies lack giving assistance to exporters and this is the reason

India is lacking behind total overall export.

Detailed description where India is lacking is explained in the report with the reasons.

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1) SINGAPORE

Singapore’s Foreign Policy The fundamental principles of Singapore’s Foreign Policy are:

As a small state, Singapore has no illusions about the state of our region or the world. We need to maintain a credible and deterrent military defence to underpin our foreign

policy. We must promote and work for good relations with our neighbours in all spheres. We are friends with all those who wish to be friends with us. We stand by our friends who have stood by us in times of need. We fully support and are committed to ASEAN. We work to maintain a secure and peaceful environment in and around Southeast Asia

and in the Asia Pacific region. We must work to maintain a free and open multilateral trading system. We are ready to trade with any state for mutual benefit and will maintain an open

market economy. We will support and be active in international organisations such as the UN.

1) Trade Policies

Objectives.

Singapore's trade policy objective is to promote a free, open, and stable multilateral trading

system. Without a sizeable domestic market, Singapore is by necessity outward oriented. In

2007, the trade to GDP ratio was 348%, the highest in the world. It is in Singapore's vital

interest to advance the global trade and investment liberalisation agenda and ensure a strong

rules-based multilateral trading system.

Singapore has benefited from the certainty and stability of the rules-based multilateral trading

regime provided by the WTO which has brought greater predictability and security to the

conduct of trade among nations. Singapore believes that the success of the global trading

system depends on simultaneous efforts to pursue the maximum possible extent of

liberalisation on the multilateral, regional and bilateral fronts.

Multilateral.

Singapore's principal priority remains the WTO, and the Doha Development Agenda. The

Doha Round has entered the final phase with the release of negotiating texts on Agriculture,

Non-Agricultural Market Access (NAMA) and most recently Rules (anti-dumping and

subsidies, including fisheries subsidies). There has been a qualitative change in the

negotiating dynamics and Singapore has actively participated in the negotiations in all areas

including NAMA, Services and Rules. Singapore has tabled proposals and made constructive

suggestions on ways to move negotiations forward, and conclude a deal of high ambition.

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Regional.

Singapore believes that regional and bilateral trade liberalisation efforts could be useful

building blocks for multilateralism. The role that trade has played in driving Asia's economic

development is evident. ASEAN's overall trade for instance more than tripled from about

US$430 billion in 1993 to US$1.4 trillion in 2006 , in just over a decade. ASEAN is pursuing

several economic integration initiatives to further enhance and facilitate trade in the region

and with the world, and Singapore plays a key role in driving the process.

ASEAN.

A landmark development for ASEAN in 2007 was the signing of the Declaration on the

ASEAN Economic Community (AEC) Blueprint by ASEAN Leaders, at the 13th ASEAN

Summit held in Singapore. The goal of the AEC initiative is to realise by 2015, a single

market and production base, with the free movement of goods, services, investment and

skilled labour and the freer flow of capital in the region. The AEC Blueprint is a publicly

available document detailing economic integration measures that ASEAN Member States are

committed to implement, and the timelines they have to abide by. These measures include

initiatives like the enhancement of ASEAN's trade in goods and investments agreements,

commitments to progressively liberalise trade in services, development of an Intellectual

Property Rights (IPR) action plan, and development of a work plan on Competition Policy. In

parallel with pursuing internal integration, ASEAN is also working on deepening economic

relations with its dialogue partners in the region. ASEAN is in various stages of FTA

negotiations with China, Japan, Korea, India, the EU, and Australia and New Zealand. As

part of the ASEAN regional grouping, Singapore also continues to be involved in these

negotiations.

APEC.

Beyond ASEAN, Singapore participates actively at Asia-Pacific Economic Co operation

(APEC) meetings, which is viewed as a key forum to promote free and open trade and

investment in the Asia Pacific region. Under the Chairmanship of Australia in 2007 and Peru

in 2008, APEC has continued to deepen regional economic integration and make progress

toward the Bogor Goals of free and open trade and investment. In addition to tariff reduction

and liberalisation at the borders, APEC members have also focused their attention on behind-

the-border barriers to trade and investment across the region. Notably, Ministers have

endorsed the second Trade Facilitation Action Plan (TFAP II), which sets out a framework

and timetable for APEC economies to achieve a further reduction of 5% in trade transaction

costs by 2010. In addition, almost all APEC economies are participating in the APEC

Business Travel Card scheme, which facilitates the movement of business travellers within

APEC. Looking forward, Singapore, as host of APEC 2009, will seek to maintain the

momentum on Regional Economic Integration in APEC.

ASEM.

The Asia Europe Meeting (ASEM) partnership structure is an important framework of

cooperation uniting Europe and Asia. Singapore believes that ASEM has value as a platform

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for frank dialogue between Asian and European leaders, and we are committed to further

promoting Asia Europe interaction through the ASEM process.

Bilateral.

On the bilateral front, Singapore has signed FTAs with New Zealand, Japan, the European

Free Trade Association, Australia, the United States, Korea, India, Jordan, Panama, and a

four-party agreement with Chile, New Zealand, and Brunei. Discussions are ongoing with

China, Canada, Pakistan, and Ukraine. Singapore recently concluded FTA negotiations with

the Gulf Cooperation Council in January 2008 and with Peru in September 2007. Both

agreements are undergoing checks by the respective legal counsels and would be signed

within the year.

Singapore views its bilateral FTAs as a critical complement to the efforts at the multilateral

level. We have painstakingly ensured that Singapore's FTAs are comprehensive, WTO-

consistent and in many aspects, WTO-plus. They are comprehensive in that they cover all

aspects of trade, including Goods, Services and Investment. They are WTO-consistent in that

elements in the FTAs are based on, and are not in conflict with, WTO rules. They are WTO-

plus in that they go beyond existing WTO obligations to achieve a freer and more predictable

trading environment.

Singapore's bilateral agreements have set the stage for broader trade agreements. The FTAs

with Japan and Korea for instance have set the platform for ASEAN to negotiate the

ASEAN-Japan Comprehensive Economic Partnership (AJCEP) and ASEAN-Korea Free

Trade Agreement (AKFTA). Moreover, the high-standard, comprehensive agreements can

catalyse further trade liberalisation by binding domestic reforms, and eventually regionalising

or multilateral sing those liberalisation measures.

Engaging Emerging Markets.

Singapore is increasingly looking to establish economic relationships with emerging markets

beyond the region, such as China, India, and the Middle East. For instance, Singapore has

established economic zones such as the Singapore-India Economic Zone, and business

networking platforms such as the Saudi-Singapore Economic Cities Business Forum and Abu

Dhabi-Singapore Joint Forum. In addition, Singapore also opened trade offices in Abu Dhabi

and Jeddah in 2007, and stepped up its presence in other emerging markets such as Vietnam,

Russia, and Latin America.

2) Investment Guarantee Agreement (IGA)

An investment guarantee agreement is designed to promote greater investment flows between

the two countries by providing a legal framework that clearly sets out investment norms and

protection when investing in the other country. The usual provisions of an IGA include

principle of fair and equitable treatment; principle of non discrimination (National Treatment

and/or Most Favoured Treatment); compensation in the event of expropriation; free transfer

of funds; and investor-state dispute settlement mechanism.

3) DTA

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To mitigate the effects of double taxation on its residents deriving income from outside its

own national boundary, one measure that a jurisdiction can take is to conclude an Agreement

for the Avoidance of Double Taxation (“DTA”) on a bilateral basis with other jurisdictions. The DTA is an agreement usually entered into between two jurisdictions seeking to avoid

double taxation. The main objective of a DTA is to provide certainty regarding when and

how tax is to be imposed in the jurisdiction where the income-producing activity is conducted

or payment is made. In a DTA, the taxing right of each jurisdiction is defined and there are

provisions for one of the jurisdictions to give tax credit or exemption to eliminate double

taxation.

Under a DTA, the taxation rights over income derived by a resident of one jurisdiction from

the other jurisdiction can be allocated in any of the following ways:

i. full rights to tax only in one jurisdiction, i.e., the other jurisdiction exempts the income.

The full rights may be allocated either to the Source State or Residence State;

ii. full rights to tax by both jurisdictions but with tax in the Source State limited to no more

than a specified level and the Residence State giving a credit for tax paid in the Source State.

This form of allocation normally results in a sharing of tax between the two jurisdictions;

iii. full rights to tax by both jurisdictions without limitation and the Residence State giving a

credit for tax paid in the Source State.

International Enterprise (IE) Singapore’s Trade Facilitation Scheme (TFS) aims to help address market gaps in trade financing for Singapore-based companies in emerging markets.

4) Trade Facilitation Scheme

Under this scheme, IE Singapore enters into risk sharing arrangement with the Asian

Development Bank (ADB) and Swiss Re Corporate Solutions, to increase the capacity for

credit guarantees to Singapore-based banks for protection against the non-payment risks of

overseas issuing banks. This in turn facilitates Singapore exporters’ receipt of payments for transactions with buyers from emerging markets.

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The Trade Credit Insurance (TCI) is an important tool for companies to protect their

cashflow against non-payment by their buyers, thus allowing them to acquire new customers

with greater confidence.

WHY

1. Singapore has one of the world’s leading bunker ports, with over 140,000 ships calling every year and total bunker sales in 2014 reaching 42.4 million tonnes.

2. Singapore’s prime geographical location has led to almost two-thirds of the world’s 25 largest third-party logistics service providers establishing significant operations,

including regional headquarters, in Singapore.

3. Singapore has a streamlined and efficient Customs, clearing 100% of all physical

cargo within 13 minutes and offering special schemes to facilitate imports and exports

Singapore ranks among the top 4 financial centres in the world [1], and is the largest

corporate banking centre in Asia.

Singapore has over 500 financial institutions providing merchant and wholesale banking,

including a high concentration of key trade banks.

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The Singapore Exchange (SGX) is Asia’s most internationalised exchange, with more than

40% of companies listed on SGX originating outside of Singapore. It is also the top listing

venue in Asia for international debt securities.

5) IMAP

The International Marketing Activities Programme (iMAP) provides support for companies

to access overseas business opportunities when they participate in Trade Associations and

Chambers of Commerce (TA/C) led business missions and Singapore Pavilions at

international trade fairs.

Introduced in April 2002, iMAP has since supported over 1,500 TA/Cs led overseas business

missions and international trade fairs, and had benefited over 9,700 participating companies.

What is the assistance?

iMAP supports overseas business missions and Singapore Pavilions at international trade

fairs organised by a TA/C. Companies who are participating in iMAP approved activities will

receive support of up to 50% - 70% of eligible core expenses (depending on country where

the event is held), such as rental of exhibition space, booth construction cost and fair/mission

consultancy expenses.

iMAP operates on a reimbursement basis. Funding will be disbursed through TA/Cs to the

eligible companies.

Who can apply?

Eligibility of TA/Cs

To be eligible to organise iMAP activities, TA/Cs must fulfil all the following criteria:

a. Headquarters must be incorporated and based in Singapore

b. Registered with Registry of Societies (ROSES) or Accounting & Corporate

Regulatory Authority (ACRA)

c. Defined as non-profit organisation1

d. Activities or functions must be in line with IE Singapore’s mission.

e. A thrust towards internationalisation

f. Secretariat2 with adequate staff, financial resources and experience to recruit and

organise the proposed activities

6) LEAD

The Local Enterprise and Association Development (LEAD) Programme jointly managed by

SPRING and International Enterprise (IE) Singapore aims to enhance industry and enterprise

competitiveness. Through partnerships with industry associations that are willing to take the

lead in industry development and drive initiatives to improve the overall capabilities of SMEs

in their industries, LEAD provides focused and customised support at the industry level

.

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Support will be provided to develop SME's capabilities and industry development for key

sectors. The development areas can cover, but are not limited to the following:

Technology & Infrastructure

Expertise & Managerial Competence

Business Collaboration

Intelligence & Research

Advisory & Consultancy

What is the assistance?

LEAD will support up to 70% of eligible costs for qualifying projects and these eligible costs

include:

Manpower-related costs

Equipment and materials

Professional services

Business development costs

Intellectual property costs

Training grants of up to 90% will also be available to the secretariat of LEAD Associations to

enhance their abilities to execute their respective LEAD Programmes.

Who can apply?

LEAD is only applicable to Singapore industry associations, business associations and

chambers of commerce, collectively known as trade association and chambers (TA/Cs)

.

These TA/Cs must also meet the following criteria:

represent a key industry (i.e. an industry that contributes significantly to the economy,

has good export potential and strong employment size);

have a sizeable membership representing the industry;

have a strong track record in helping Small and Medium Enterprises (SMEs);

the project(s) to be undertaken must not have commenced at the time of the

application.

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2) SOUTH KOREA

1) Business Matchmaking

Outstanding Korean companies and products are introduced to foreign buyers and we help facilitate business transactions, setting up meetings for foreign and Korean companies as well.

Online Buyer request

An important aspect of the work of KOTRA is matchmaking. Finding the right supplier

for business. For that we have set up the buyer requests. You inform us what you are looking for, whether that is a new supplier, a new product, a new part or component or new materials.

Trade Missions

KOTRA cooperates with local governments and authorities to form and dispatch trade missions consisting of SMEs wishing to engage in overseas business activities. Export

consulting is provided for foreign buyers by KOTRA’s Korea Business Center to increase international trade.

2) Exhibitions and Conventions

KOTRA provides guidance and recommendations to exhibitors and support the cost of international trade shows so that SMEs can utilize trade shows as their most effective tactic for generating leads and building brand image. KOTRA also holds its own conventions and represents Korea at global expos to demonstrate Korea’s technology and economy.

Planning and organizing Korea pavilion in international trade shows Representation of Korea at expos World-Class Products Show SEOUL FOOD 2012 GEP Global Exhibition http://english.gep.or.kr/wps/portal/ex

Cultural Media Business

KOTRA supports Korean culture and media (music, film, TV, games, etc.) companies as they

interact with foreign buyers. Conventions and expos are held in conjunction with the

government to connect Korea to the world culturally and economically.

3) Paper less trade

Overview

Paperless trade has been one of the key drivers behind the export competitiveness of Korea’s domestic trade industry. As such, it has helped facilitate the formation of the world’s best trade community, which encompasses more than 48,000 trade firms, banks, insurers, customs brokers, shippers, airlines, bonded warehouses, and trade-related government organizations. Every year, paperless trade generates economic benefits worth 6 trillion KRW by

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electronizing 615 kinds of B2B and B2G trade documents and electronically processing 350 million documents.

Policies

Paperless trade refers to transactions that are wholly or partially based on electronic documents. In 1991, Korea began to build an EDI-based paperless trade system for commercial trade, foreign exchange, customs clearance and export-import logistics.

The government subsequently established uTradeHub as part of the e-Government Support Project (2003-2012) in order to better respond to changes in the trade environment caused by the growth of IT technologies such as the internet in the early 2000s and ensure the continuous expansion of trade. It also introduced the Electronic Trade Facilitation Act to widen the use of paperless trade. The government now envisions a global trade information network through which all trading processes, including marketing, foreign exchange, commercial trade, customs clearance and logistics, are handled electronically on a real-time basis both at home and abroad. Objective: Expand relevant infrastructure to enable the ubiquitous use of paperless trade for more economical and efficient trade activities.

1) Provide a user-oriented package service system 2) Realize paperless cross-border trade 3) Align the support system around the goal of expanding paperless trade

4) Support for exhibition industry

Overview

The exhibit industry not only contributes to increased trade but also boosts employment and economic growth by having positive effects on related sectors such as tourism and local businesses. In order to further develop this important industry, the Korean Government is reinforcing the industry’s foundation by providing support for domestic exhibitions.

Policies

Support for domestic exhibitions

The Korean Government began to provide support for domestic exhibitions in 2000. Exhibitions are now classified into three different types – Global Top, Promising, and Integrated – and receive differentiated support depending on which category they fall into.

o The Global Top category was established in 2009 for the purpose of developing world-class exhibitions. Exhibitions that are arranged by key industries and that have high growth potential belong to this category.

o Created in 2000, the Promising category includes exhibitions that, with government support, can contribute to export growth and the development of the domestic exhibit industry.

o An Integrated exhibition refers to two or more similar exhibits being held together in the same place during the same period under the objective of increasing the exhibit scale and synergy effects. An organizer can receive support for this kind of exhibit up to three times.

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Reinforcement of industry foundation

The Korean Government is making various efforts to advance the domestic exhibit industry, such as increasing international cooperation, promoting domestic exhibitions and developing human resources.

o Enhancing international cooperation: The government is increasing international cooperation and exchange by participating in the general assemblies of exhibition-related global organizations such as UFI and AFECA, as well as by hosting the Asia Exhibit Forum every year.

o Promotion of domestic exhibitions: The government supports domestic exhibit-related promotional activities carried out at the overseas roadshows of renowned exhibitions or at global exhibitions in order to increase the domestic exhibit industry’s competitiveness and facilitate its globalization.

o Development of expert resources: The government plans to provide a training program for exhibit specialists who can lead the globalization of the industry.

5) Korea trade insurance corporation (k-sure)

Overview

The Korea Trade Insurance Corporation (K-sure) was established in July 1992 under the Trade Insurance Act to promote trade and overseas investment of Korean enterprises with the mission of boosting national competitiveness. As the official export credit agency under MOTIE, its business scope is as follows:

Operation of various trade insurance programs to cover risks arising from the export and import of goods and services, overseas construction projects and investments, management of foreign exchange (FX) and interest rate fluctuations, export of cultural contents and services, and other overseas transactions.

Provision of credit-related services, such as credit research and credit information management, in addition to debt recovery services, including the collection of overseas receivables for Korean enterprises.

Realization of the vision to become a “public corporation trusted by the people of Korea” with an emphasis on customer satisfaction by implementing ethical and innovative management based on the principles of integrity, transparency, sharing, and communication.

Sound management of the “Trade Insurance Fund” through the trade insurance underwriting ceiling approved by the National Assembly and the integrated risk management system. K-sure develops various trade insurance products and value-added services with the aim of contributing to the promotion of Korean exports as well as international trade more broadly in order to proactively deal with the constantly changing environment of global trade. As of December 2013, K-sure has a total of 490 employees working out of the head office in Seoul and 13 domestic branches in Korea with one local representative each, in addition to 14 representative offices abroad.

Policies

2014 BUSINESS PLANS

In 2014, the advanced economies are expected to recover thanks to the implementation of favourable monetary policies whereas emerging ones will grow somewhat slowly as their cyclical growth has peaked. On the other hand, the Korean economy is expected to recover

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thanks to an improved global economy along with increased consumption and investment . The role of trade insurance will therefore be more important in 2014 due to the need for an expanded support platform suitable for growing trade amid the global economic recovery and a greater need for support for SMEs to boost domestic consumption and create jobs . The key words for K-sure in 2014 will be “internal stability,” “on-site ”and“ promoting competitiveness” with a target business volume of KRW 210 trillion for a KRW 6 trillion increase year on year. In particular, the magnification of the SME support volume to KRW 40 trillion will contribute to economic recovery and quality job creation by enhancing the export competitiveness of SME exporters suffering from external and internal difficulties due to tough competition in the global market . On the other hand, the business volume for medium- and long-term financing will be expanded by KRW 5 trillion to KRW 20 trillion to assist Korean firms in winning bids on overseas projects in the plant construction and shipbuilding sectors as well as to cope with the current trend of financing prior to contract award and projects of enormous scale.

The following are the specific plans for the major projects of K-sure in 2014:

First, K-sure will focus on boosting the export competitiveness of SMEs. In the year 2014, the support volume for SMEs will be dramatically increased to KRW 40 trillion, and the company’s Foreign Exchange Risk Insurance will be dedicated to SMEs. In particular, it will be used to actively support exchange risk for these SME exporters in order to proactively cope with a weak yen . Furthermore, the SF & Global Program will be used to provide tailored support to SME exporters at each stage of their growth until they become global companies. For innovative venture start-ups, efforts will be made to help them win venture capital, mezzanine capital and other forms of venture financing in order to develop them as promising SMEs . Second, more MLT financing will be secured to improve Korean exporters’ bidding competitiveness. Project-customized support will be maximized to expand MLT financing, particularly in the plant construction and shipbuilding sectors. The sources of ship financing will be diversified by utilizing asset-backed bond insurance and reinforcing support for overseas shipping funds. In addition, off-take financing support for resource development projects will be augmented to promote the nation’s capacity for resource development. Third, strategic support via trade insurance will be given to Korean firms entering high-risk emerging markets (so-called “strategically special markets”). To meet customer demand, a Mobile-K Office will be operated on a standing basis while the targets of coverage will be expanded. In addition, the relending program will be further developed in cooperation with

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local financial institutions in emerging markets . Fourth, more focus will be placed on risk management related to underwriting by improving the decision-making process on extending credits, which is currently operating on a committee basis, in order to create a sophisticated risk management system . Fifth, the system for claims processing will be modified, while the capacity for recoveries will be maximized through selection/concentration. Claims processing will be computerized to expedite the decision making process in claims and a real-time information sharing system will be built to share recovery-related information with the overseas representative offices of K-sure and debt collection agencies in order to boost the efficiency of recoveries. K-sure will be a sturdy trade safety net for the year 2014, reinforcing the export competitiveness of SME exporters, boosting their bid competitiveness through strengthened project finance support, and enhancing support for emerging and strategically special markets so that Korea can achieve USD 2 trillion in trade.

6) New policy roadmap

Overview

Competition is intensifying globally to gain a competitive advantage by striking free trade deals. As major advanced countries as well as emerging economies strive to increase their national presence throughout the East Asian region, the trade environment within and surrounding Korea has been going through a rapid transformation. In order to keep up with ever-changing circumstances while ensuring that domestic industries benefit from the synergy effects of trade, the Korean Government set out a direction for the country’s trade policy by releasing the New Trade Roadmap in June 2013.

While maintaining the direction of the previous open trade policy, the Roadmap aims to build a system in which trade policies benefit more parties and the linkage between industry and trade policy is more coherent. MOTIE aspires to realize a creative economy by devising win-win trade strategies building on existing cooperation projects and dialogue channels for trade and industry.

A New Trade Roadmap 2013

Objective To become a win-win trading nation at the forefront of the creative economy

Policy Directions 1. Maintain open trade policy 2. Establish trade strategies that allow win-win relations between Korea and its trading partners 3. Establish a system for sharing outcomes of trade policies 4. Emphasize cooperation and communication on trade policies

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Previous strategy Strategy : FTA-oriented trade Trade negotiation : Establishment of an FTA Hub Trade cooperation : Focused on large economic blocs Outcome sharing : Benefits of FTAs not widely shared Implementation method : Segmental trade implementation system, Led by government

New trade policy strategy Strategy : Trade with a strong linkage to industry Trade negotiation : Linchpin of regional integration Trade cooperation : Develop model for trade cooperation customized to emerging partners Outcome sharing : Enhance policy effectiveness to create jobs and support SMEs Implementation method : Ensure consistency between trade negotiation and implementation,

Seek collaboration and communication between government and private sector

Action plans

Align negotiating strategies with the new global trade order Korea views its position as that of a linchpin of the economic integration being discussed throughout the East Asian region. Korea already has a well-established free trade network whose reach is steadily expanding. It has also been actively involved in the transformation of the global trade order by taking the lead in concluding mutually beneficial FTAs with emerging economies as well as in WTO and other plurilateral negotiations.

Strengthen the linkage between trade policy and industry/resource collaboration By analyzing the current portfolio of Korean businesses overseas, MOTIE plans to pursue trade cooperation tailored to the needs of current and prospective out-bound investors. Policy effectiveness will also be enhanced by realigning the various support mechanisms set up under trade cooperation projects.

Expand the benefits of trade by strengthening linkage with domestic policy MOTIE will make necessary policy efforts to reinforce the foundations for overseas investment and assist in business capacity building so that the expansion of markets through trade will lead to SME growth and job creation.

Build a sound trade policy basis through better communication and cooperation In line with the Government 3.0 initiative, MOTIE has formed a trade cooperation community to ensure free communication with industry, experts and lawmakers in order to secure the driving forces necessary to pursue trade policies.

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3) GERMANY

1) The Transatlantic Trade and Investment Partnership (TTIP) is a proposed free trade

agreement between the European Union and the United States, with the aim of promoting

multilateral economic growth.[1] The American government considers the TTIP a companion

agreement to the Trans-Pacific Partnership (TPP)

Trade between the EU and the US

(in billion euros)

Direction Goods Services Investment Total

EU to US 288 159 1655 2102

US to EU 196 146 1536 1878

US investment in the EU is three times greater than US investment in the whole of Asia and

EU investment in the United States is eight times that of EU investment in India and China

combined. Intra-company transfers are estimated to constitute a third of all transatlantic trade.

The United States and EU are the largest trading partners of most other countries in the world

and account for a third of world trade flows. Given the already low tariff barriers (under 3%),

to make the deal a success the aim is to remove non-tariff barriers.

2) The Comprehensive Economic and Trade Agreement (CETA) is a free trade

agreement which is currently at negotiation level, between Canada and the European Union.

The agreement is to be approved by the Council of the European Union and the European

Parliament. Whether approval by all EU member states is also necessary is disputed. If

approved, the agreement would begin to come into effect in 2016 at the earliest, at which

time about 98% of the tariffs between Canada and the EU would be eliminated.

Asia

In mid-2007, during the German EU presidency, the European Union entered into

negotiations on FTAs with India and South Korea, as well as beginning preliminary talks

with the ASEAN countries.

Germany has a strong economic interest in an EU-India free trade agreement and the

negotiations. Compromise has been reached on some key points, but others have yet to be

resolved.

At the end of 2009, the EU changed strategy in its negotiations with the ASEAN area, which

is a highly dynamic growth region. As it had turned out that the original approach of

negotiating with the region as a whole was not resulting in any specific outcomes, the EU

members agreed to start by entering into bilateral negotiations with individual ASEAN

countries before possibly combining the outcomes into a regional agreement.

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EUSFTA

Negotiations with Singapore started in March 2010 and were brought to a successful

conclusion in October 2014, when the EUSFTA - EU-Singapore Free Trade Agreement was

concluded. Germany welcomes this agreement: despite its small size, Singapore is one of

Germany's most important trading partners in the ASEAN area. Free trade agreements with

high-growth countries in Asia are of essence for our export-driven economy. The text of the

EUSFTA was negotiated by the European Commission and is currently being scrutinised by

the German Government. Similarly, the European Commission was also in charge of

concluding the EU-Singapore negotiations on investment protection. The German

Government will take a very close look at this part of the agreement as well.

Latin America

The first EU FTAs to be concluded with Latin American countries were the EU-Mexico FTA

of 2000 and the Association Agreement with Chile of 2002. Going far beyond the scope of a

mere free trade agreement, the Association Agreement with Chile provides a broad

contractual basis for political dialogue, economic relations, and economic cooperation. It is

soon to be modernised to allow for better access to the goods markets, more intensive

dialogue both at political and scientific/academic level, stronger involvement of civil society,

and the launch of expert forums on issues including energy, the environment, consumer

protection, research, IT, culture, and education.

3) SME policy

The main objective of the EU Commission’s initiatives: deepening of the European integration process in economic, political and social terms.

Based on the principle of subsidiarity, the European Union supports, first, backward regions

and regions which suffer from structural crises, mainly due to the decline of traditional

industries, and, second, branches and certain disadvantaged groups within each member state,

independent of their location.

Regarding SME support, EU policies can be distinguished along these lines. The first line

of action includes regional policy measures, which often give an indirect support to

SME. The second line includes direct support policies for SME, especially in terms of

technological upgrading. In both cases the EU provides the financial resources and

defines the framework conditions.

The policies are carried out in the context of special support programs, which are

formulated together with the member states, the regional and local governments and non-

government economic and social actors. The member states have to define a development

plan, which has to be presented to the Commission for examination and approval. The

programs contained in the development plan have to define the goals, criteria, and target

groups of implementation activities pursued by public and private actors at a

decentralized level.

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For the implementation of regional policy the European Commission has established

structural funds for different support areas. Most important funds are:

o European Fund for Regional Development (EFRE)

o European Social Fund (ESF)

EFRE addresses regions with severe economic and social problems. (The Commission

defined three types of regions to be supported, according to different types of structural

problems. In West Germany, especially old industrial regions have been supported ("target

2"))

EFRE focuses on the creation and preservation of employment, the restructuring and

development of old and new industrial areas as well as on other projects for regional

development; SME support comes in to the extent that it contributes to these goals.

ESF addresses areas like training, qualification, further education, support of personnel in

science and technology as well as interaction between training institutions and the economic

sector. More direct support policies for SME, independent of region and location, have

gained importance in the last decade. Various programs and institutions have been

established to stimulate and support SME and other economic and social actors.

Particularly important are the EU Framework Program for the Support of Science and

Technology (FTE), the European Investment Bank (EIB) and the European

Investment Fund (EIF).

= These institutions spend part of their resources to provide risk capital and to support start-

ups of innovative firms, R&D, qualification and further education, international cooperation

between firms, loans, venture capital funds, and credit guarantees.

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4) AUSTRALIA

1) Early Stage Venture Capital Limited Partnerships (ESVCLP) Fund managers seeking

to raise a new venture capital fund of at least $10 million and not more than $100 million for

investing in Australian businesses may be eligible for ESVCLP registration. Registration

entitles a fund to flow-through tax treatment and its investors (whether resident or non-

resident) receive a complete tax exemption on their share of the fund's income (both revenue

and capital). Australian businesses with assets of less than $50 million may be able to access

capital from funds registered under this program if their primary activity is not finance or

property development.

A new governance structure under the NSW Procurement Board and operating framework for

government procurement makes procurement easier for government buyers and more

attractive for suppliers. Procurement is one of the top value creators in any business or

government agency, and fundamental to government service delivery Skill Development:

Industry Skills Fund The $476 million Industry Skills Fund is a key element in the Australian

Government’s National Industry Investment and Competitiveness Agenda. It will provide up to 200,000 training places and support services over four years. New skills initiatives The

Prime Minister has announced two new skills initiatives: Training for Employment

Scholarships to encourage employers to take on more young people and Youth Employment

Pathways to help reduce youth unemployment in regional Australia.

2) Free Trade Agreement Training Provider Grant

The Free Trade Agreement Training Provider (FTA-TP) Grant has been established to assist

eligible organisations deliver tailored training projects aimed at helping Australian small and

medium-sized enterprises and stakeholders understand how to use and access FTAs with

Korea, Japan, and China. Eligible organisations are as follows:

member-based business organisations located in Australia such as chambers of

commerce and industry, bilateral business councils and chambers or peak industry /

business associations

individual Australian companies registered as training providers

Australian education institutions.

Grants are merit based and competitive. Eligible applicants can be offered between A$20,000

and A$1.372 million in year one and A$20,000 and A$773,000 in year two of the

programme. Total grant funding available over the life of the programme is $2.45 million.

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3) Trans-Pacific Partnership Agreement (TPP) negotiations were undertaken by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, the United States and Vietnam. These negotiations successfully concluded on 6 October 2015 (AEST).

The TPP is a regional free trade agreement of unprecedented scope and ambition with great potential to drive job-creating growth across the Australian economy.

TPP outcomes include new market access opportunities for Australian exporters of goods and services, as well as investors, that are additional to Australia’s existing free trade agreements. For investment, the TPP will create new opportunities and provide a more predictable and transparent regulatory environment.

The government has also made some changes to the taxation system, reducing the company

tax rate for SMEs from 30% to 29%, and enabling small firms to instantly write-off assets

they buy that are worth up to $6,500 in value. Other initiatives include the Enterprise

Connect support program, the national Small Business Support Line, and the review of the

Franchising Code of Conduct.

4) International Exhibitions Insurance program

The Australian Government International Exhibitions Insurance program aims to provide the

Australian public with broad access to significant cultural material to which they would

otherwise not have access by offering funding to offset the cost of insurance for eligible

exhibitions.

5) Enterprise Connect

The Department of Industry’s Single Business Service is streamlining the way businesses

access industry information and services by putting their needs first – reducing red tape and

providing quality, consistent services at the lowest possible cost.

Single Business Service assistance is universal – available to all Australian businesses –

made up of a consolidated online presence accessible anytime and anywhere, a contact centre

and a face-to-face business facilitation network to link interested businesses with relevant

programmes and services.

As a part of this initiative, from 1 July 2014, the following websites have been merged into a

consolidated, single resource for business:

business.gov.au

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ausindustry.gov.au

enterpriseconnect.gov.au

commercialisationaustralia.gov.au

skillsconnect.gov.au

crc.gov.au

Many of the programmes and services that were previously available on these websites are

now located in Grants and Assistance Finder on business.gov.au.

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5) TAIWAN

1) SME Development Fund and National Development Fund provide financing. These funds

are lent by commercial banks or invested by SME investment companies. SME Credit

Guarantee Fund also exists.

2) Support for management, technology and linkage are provided free of charge to SMEs.

These are conducted by private consultants and firms through open bidding. 5S and QCC are

standard tools.

3) Following the Japanese model, the One Town One Product (OTOP) program develops

local specialty industries with city and township as units.

Under the terms of the Taiwan-Nicaragua FTA, 3374 categories, or 51 % of Taiwanese

exports to Nicaragua will be duty free, while 5797 categories, or 65 % of Nicaraguan imports

to Taiwan will enjoy zero tariff as well. A major benefit of the agreement is that it would

allow Taiwan to tap into the Central and North American markets, as the US-Nicaragua FTA

through the Central American Free Trade Agreement went into effect in April.

NAMA Taiwan, as a trade-driven economy with a total commodities trading value equivalent

to that of its GDP, views market-access for non-agricultural products (NAMA) as a central

topic on the Doha Agenda. Taiwan supports the implementation of the Swiss Formula with

ambitious coefficients, which allows for relatively large tariff reductions. The number of

coefficients, however, should be limited to two – one designated for developing Members

and the other for developed Members – and their values should not differ dramatically.

Taiwan has expressed much interest in sectorial tariff reductions, as it believes these will be

helpful in addressing the insufficiency of tariff formula reductions. It has taken the initiative

to submit proposals for the liberalization of three important NAMA sectors: bicycles and

related parts, sports equipment, and hand tools.

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6) USA

1) The Trans-Pacific Partnership (TPP)

The Trans-Pacific Partnership (TPP) will provide American–made products new access to

some of the fastest-growing markets in the world. TPP will eliminate over 18,000 taxes

various countries place on Made-in-America exports – including all tariffs on U.S.

manufactured exports. In fact, 98 percent of U.S. industrial and consumer exports to the new

TPP countries will be eligible for immediate duty-free treatment

TPP will eliminate 18,000 tariffs on Made-in-America exports, and on the first day that TPP

is enacted, 98% of industrial and consumer exports will be duty free. And, TPP will

strengthen supply chains by treating inputs in TPP markets as originating so they will receive

equal treatment as a domestically made input or product..

* TPP Countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand,

Peru, Singapore, the United States, and Vietnam

** New TPP Countries: Countries with which the United States currently does not have

preferential market access – Brunei, Japan, Malaysia, New Zealand, and Vietnam

TPP helps small businesses benefit from global trade For the first time in any trade

agreement, TPP includes a chapter specifically dedicated to helping small- and medium-sized

businesses benefit from trade. Small businesses are one of the primary drivers of job growth

in the U.S., but too often trade barriers lock small businesses out of important foreign

markets when they try to export their made-in-America goods. While 98 percent of the

American companies that export are small and medium-sized businesses, less than 5 percent

of all American small businesses export. That means there’s huge untapped potential for small businesses to expand their businesses by exporting more to the 95 percent of global

consumers who live outside our borders.

‘’ TPP addresses trade barriers that pose disproportionate challenges to small businesses,

such as high taxes, overly complex trade paperwork, corruption, customs “red tape,” restrictions on Internet data flows, weak logistics services that raise costs, and slow delivery

of small shipments. TPP makes it cheaper, easier, and faster for American small businesses

to get their products to market by creating efficient and transparent procedures that move

goods quickly across borders- -USA INTERNATIONAL TRADE DEPARTMENT

2) Global markets USA commercial service program

Mission

Global Markets assists and advocates for U.S. businesses in international markets to foster

U.S. economic prosperity.

Utilizing our network of trade promotion and policy professionals located in over 70

countries and 100 U.S. locations USA EXPORT ASSISTANCE CETRES), Global Markets

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promotes U.S. exports, especially among small and medium-sized enterprises; advances and

protects U.S. commercial interests overseas; and attracts inward investment into the United

States.

Vision

Global Markets provides the most effective and efficient government assistance to U.S.

businesses, foreign investors in the United States, and partners seeking opportunities and

facing challenges in a dynamic global marketplace.

Value Proposition

Global Markets has a federal government presence both across the United States and in

countries that represent 91 percent of worldwide GDP with authoritative, impartial,

accessible professionals who have specific trade and investment expertise.’’ As trusted intermediaries with extensive public and private sector contacts, credibility and influence in

foreign markets, GM effectively assists U.S. businesses and partners in entering and

expanding international markets, addressing barriers to accessing foreign markets, winning

foreign government procurements and attracting inward investment.’’

3) Trade logy- official blog of ITA

Yes, government blogs are a hot topic in some quarters these days. In the public and within the government itself, there is a healthy mix of excitement and [insert a negative word of your choice] about what they might be able to help accomplish and how smooth or bumpy the road to get there may be. At the International Trade Administration, we think that the blog format could be a great way for us to engage citizens, businesses, and our other stakeholders in a new way (for us as an organization, at least) in a discussion about what they do and why do it, so they decided to launch a blog.

The ITA Blog is to be a study of international trade and the issues involved between ITA and business, the trade-interested community. It is meant to be an ongoing dialogue about how trade benefits U.S. businesses and what ITA is doing to helping them achieve those benefits. The ITA Blog will be a new channel to provide context for trade promotion, policy and analysis to show how trade fits into the bigger picture. It will answer questions about what is trade and why is it important?

The ITA Blog will feature blog posts written by ITA employees at all levels. From its trade specialists working directly with companies to help them achieve their first exports to its analysts working in Washington cubicles to our senior officials, it will show what ITA is doing on trade.

It will provide people an opportunity to reply to its blog posts and it look forward to engaging people in discussions about the questions and issues they raise.

4) The International Trade Administration's ‘’Top Markets Series’’

The International Trade Administration's Top Markets Series is meant to help exporters

determine their next export market by comparing opportunities across borders. Each report

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ranks future export opportunities within a particular industry based on a sector-specific

methodology. The reports provide a detailed assessment of the competitiveness landscape

within a sector (listed below), as well as the opportunities and challenges facing U.S.

exporters in key markets. Each report is available for download. Interested exporters can also

download or view individual case studies within larger reports.

Agricultural Equipment

Media and Entertainment

Aircraft Parts

Oil and Gas

Automotive Parts

Recreational Transportation

Building Products and Sustainable

Construction

Renewable Energy

Civil Nuclear

Renewable Fuels

Cloud Computing

Semiconductors and Related

Equipment

Cold Supply Chain

Smart Grid

Education

Textiles and Apparel

Environmental Technologies

Travel and Tourism

Health IT

ITA’s Top Markets Reports are developed by its Industry & Analysis business unit, whose

staff of industry, trade, and economic experts provide detailed analysis to strengthen the

export competitiveness of U.S. industry and support strategies to unlock export and

investment opportunities that benefit the U.S. economy.

5) National export initiative

The Obama Administration will build on the success of the National Export Initiative (NEI)

by launching NEI/NEXT: a new customer service-driven strategy with improved information

resources that will ensure American businesses are fully able to capitalize on expanded

opportunities to sell their goods and services abroad.

NEI/NEXT will help more American companies reach more overseas markets by improving

data, providing information on specific export opportunities, working more closely with

financing organizations and service providers, and partnering with states and communities to

empower local export efforts.

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Yet now technology makes it easier than ever for small businesses to join the global

marketplace. With the click of a mouse, customers in Seoul can purchase from a

manufacturer in Saginaw or contract the services of an architecture firm in Santa Fe. We must

amplify the reach of small and rural businesses into the global marketplace during this new

era.

the Administration is building on its achievements and launching – “NEI/NEXT” – a strategy

to support more U.S. companies to export to more overseas markets by:

1. Connecting more U.S. businesses to their NEXT GLOBAL CUSTOMER with industry-

specific information and tailored assistance.

2. Making the NEXT INTERNATIONAL SHIPMENT easier and less expensive, through

efforts to streamline U.S. government export-related services, reporting requirements and

processes, and speeding American goods to more markets through domestic infrastructure

improvements.

3. Expanding access to finance for U.S. businesses’ NEXT EXPORT TRANSACTION,

helping more exporters obtain financing to meet international demand, and ensuring more

companies know what products and services are available to reduce risk and export to new

markets with confidence.

4. Promoting exports and foreign direct investment attraction as the NEXT ECONOMIC

DEVELOPMENT PRIORITY in communities and regions across the country.

5. Creating, fostering and ensuring U.S. business’ NEXT GLOBAL OPPORTUNITY by helping developing economies improve their business environments, opening new markets,

and by establishing conditions and addressing trade barriers to allow more American

exporters to compete and win abroad.

Within each of these objectives, we will support the creation of data to help U.S. companies

make decisions and better inform exporting communities across the country so they can

integrate trade and investment into their economic development strategies. Furthermore, we

will seek to consistently gather and use feedback from U.S. industry and stakeholders to

constantly improve our efforts. NEI/NEXT is a long-term economic growth strategy to create

and support good-paying jobs here at home by ensuring our companies is poised for success

in the global marketplace. NEI/NEXT will help more U.S. companies and entrepreneurs

understand the importance and advantages of trade and investment – for their bottom line and

the benefit of their employees and communities. NEI/NEXT advances a vision to make trade

and investment a bigger part of our economic DNA and help American companies compete

and increase their global fluency – for a stronger American economy.

The Administration will measure success under NEI/NEXT by tracking several metrics that

focus our strategy on meeting customer needs, including:

Dollar value of U.S. exports

Number of U.S. companies exporting, including small and medium-sized businesses and

minority- and women-owned businesses as well as the number of companies new to

exporting

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Number of companies exporting to more than one market (specifically those exporting to 2 to

4 markets and those exporting to 5 to 9 markets, or more – as measured by the Census

Bureau)

Exports to emerging countries and trade agreement markets (by dollar value and number of

companies)

7) Export trading company act

The globalized economy presents increasingly intense competition from foreign suppliers in the export market. Moreover, U.S. companies currently face competitive pressures on an unprecedented scale. The Export Trading Company Act (ETCA) was created by Congress to enable U.S. firms to collaborate with each other to reduce their exports costs, become more efficient at exporting, and, in turn, compete more effectively in the export market.

The U.S. Department of Commerce’s Office of Trade and Economic Analysis administers the Export Trade Certificate of Review. Thousands of U.S. companies have already benefitted from these programs

The export trade certificate of review

The Export Trade Certificate of Review provides substantive federal antitrust protection and procedural benefits to U.S. firms interested in collaborating on export activities. By coordinating with one another under the legal protection of this program, U.S. firms can

reduce their shipping costs, boost their negotiating power, fill large export orders, and

develop long-term export business.

8) Country commercial guide

What should you have done to get an accurate understanding of the market, even if you

decide not to go to a trade show for the industry? Well, you should have consulted a resource

that for many years has been providing reliable, in-depth market research for U.S. companies

of all sizes. The publication is called the Country Commercial Guide (CCG) and there are

Guides covering some 123 markets. Formerly comprised of large, door stop proportions, the

CCGs from 2015 are divided into bite size bits and accessible online via export.gov/ccg/. In

case we fail to mention it later, access is FREE. It’s never a good idea to select market opportunities based on faulty assumptions and hearsay. With the CCG’s, you can get

accurate, bankable information with an investment of a few minutes and a couple of mouse

clicks. The format is mobile friendly, so you can peruse tidbits at your leisure, emailing

yourself, or colleagues, to select pages for closer scrutiny later. Your boss may appreciate

receiving this information for its brevity and insightfulness.

Looking for foreign market intelligence you can trust? Want to know the best-sector prospects to target today? Know the trade barriers to watch out for and the regulations you need to follow? How about culture and business customs for that next trip?

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Look no further than the U.S. Commercial Service’s Country Commercial Guides, written by U.S. Embassy trade experts worldwide….. An excellent starting point for everything you need to know about exporting and doing business overseas detailing 8 important weigh stations on your export journey.

Market Overview, Challenges, Opportunities & Entry Strategies Political Environment Selling U.S. Products and Services Leading Sectors for U.S. Exports and Investment Trade Regulations, Customs and Standards Investment Climate Statement Trade and Project Financing Business Travel

9) Export.gov

Start export

Expand export

Export.gov is the U.S. Government’s export promotion and finance portal. This portal was

designed to deliver critical export information and services to small and medium-sized U.S.

companies. Export.gov partners with many U.S Government Agencies and also with a

number of private sector companies. Through these partnerships, Export.gov has become the

central location for export information and assists U.S. companies in beginning or expanding

their exporting business.

export assistance is delivered by many U.S. Government Agencies. Export.gov combines the

information from each of these Agencies to provide U.S. companies with one central location

for finding their export information

The Strategic Partnership Program’s mission is to expand the U.S. Export Base through innovative Public - Private Sector Partnerships. Combining the export assistance services of

the U.S. Commercial Service together with “best-in-class” export services companies, the Strategic Partnership Program enables increased export opportunities through joint

outreach and education to small- and medium-sized U.S. businesses.

Export.gov’s Partner Agencies

Export.gov is the U.S. Government’s export promotion and finance portal. This portal is designed to deliver critical export information and services from across the U.S. Government to small and medium-sized U.S. companies to begin or expand their exporting business.

Federal export assistance is delivered by many U.S. Government Agencies such as:-

International Trade Administration

U.S. Census Bureau

Department of Energy

Export-Import Bank

Foreign Agricultural Service (FAS)

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Agency for International Development (USAID)

Overseas Private Investment Corporation (OPIC)

Small Business Administration

Department of State

U.S. Trade and Development Agency (USTDA)

Office of Foreign Assets Control

United States Trade Representative

.

Opportunities:-

By Industry

Export.gov 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. View the available information for your industry.

Market Research

Plan market entry the right way – use market research to learn product’s potential in a given market, the best prospects for success, and the market’s business practices before you first export.

Use searchable database to find Country Commercial Guides, industry overviews, industry/regional reports, and much more.

Trade Events

Trade Events provide venues for U.S. exporters to meet international buyers, distributors, or representatives. By organizing trade missions and educational seminars; providing matching or export counselling services at trade shows; and recruiting buyer delegations to U.S. trade shows, the U.S. Government helps U.S. exporters expand global sales at trade events.

Use searchable database to find domestic and international trade shows, industry conferences, webinars, and other events that can help you.

Trade Leads

The U.S. Government has resources world-wide in Embassies and Consulates that help identify promising trade leads for U.S. exporters.

Use searchable database to find pre-screened, time-sensitive leads and Government Tenders gathered through U.S. Commercial Service offices around the world.

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Solutions:-

International Sales-Marketing

With offices in more than 100 U.S. cities and 80 countries across the globe, the U.S. government offers U.S. companies exporting information, advice and cost-effective end-to-end international business solutions. Whether new to international, trying to enter a new market or looking to expand business in a specific market they have a variety of services available to help.

International Finance

International finance includes not only financing, but also insurance that can cover export transactions and overseas investments and grants to help conduct feasibility studies or to train the foreign business community and government officials on U.S. business practices, regulatory reform and other economic development activities. Become familiar with the various government programs designed to help company finance its export transactions, and give it the capital to carry out its export operations.

International Logistics

When shipping a product overseas, the exporter must be aware of packing, labelling, documentation, and insurance requirements. Most exporters rely on an international freight forwarder to perform these services because of the multitude of considerations involved in physically exporting goods. Learn about international logistics to make sure that nothing has been forgotten.

Licenses & Regulations

Some exports require an Export License before you can ship your product. Some foreign countries have standards that exporter should be aware of. Lastly, there are some countries that exporter cannot sell to. Use Licenses & Regulations as a primer to familiarize with the licenses, standards, and legal considerations that may apply to your product(s).

Trade Data & Analysis

Trade data can help companies identify the best countries to target their exporting efforts. Companies can gauge the size of the market for their product as well as develop a price strategy to become competitive.

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7) UNITED KINGDOM

1) Overseas Market Introduction Service

Overview

UKTI’s Overseas Market Introduction Service (OMIS) can help business at any stage of exporting - from finding opportunities to setting up in another country.

Benefits

OMIS puts in touch directly with UKTI staff in over 100 overseas markets. It can help to

access the right international contacts or partners find the best way to do business in a market achieve a successful market entry strategy increase profits by using effective overseas promotion

How the service works

As a first point of contact, a UKTI International Trade Advisor or an adviser from Scottish Development International, Welsh Government or Invest Northern Ireland will work with company on its export plan. The adviser will then contact UKTI’s local experts who will carry out research on your behalf.

Work can include:

likelihood of success in the market and market entry strategies business opportunities and identification of possible partners advice on local conditions, including competitors, regulation and standards advice on accessing and influencing decision makers arrangements for a promotional event

The local experts will then discuss, develop and agree a quote. This can include:

pre-visit research and support appointments with target customers or potential business partners or agents organisation of receptions, meetings or seminars for you to present your product or service

2) Medium size development program

Overview

Medium-Sized Businesses (MSBs) are major employers and make an important contribution to the growth of the economy. UKTI provide a special package of support specifically for these businesses.

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Benefits

The service helps medium-sized businesses to assess their export capability and get started in international trade, or develop their existing export operations further.

How the service works

Support is delivered by UKTI’s regional International Trade Teams. Exporters will be assigned local UKTI trade experts to work with.

This can include:

advice and support from a UKTI International Trade Adviser help with developing an export strategy and action plans tailored to MSBs’ needs guidance on routes to market most relevant to MSBs advice on international business culture access to UKTI’s global network advice on marketing research projects, including market selection and sources of

information support from UK Export Finance (UKEF) an Intellectual Property Health check access to High Value Opportunities in major projects overseas, participation in MSB trade missions membership of regional medium-sized business clubs access to postgraduate placement opportunities tailored signposting to other government support free access to structured trade export finance advice from UK Export Finance

3) Research and Development (R&D) Tax Credits

Tax credits are available for companies involved in R&D. These companies pay a lower rate of Corporation Tax.

Companies may get a 100% deduction of Corporation Tax on work related to R&D.

Large companies can get a further deduction from their taxable income which is 30% of their current spending on qualifying R&D.

SMEs can get a further deduction from their taxable income of 125% of their current spending on qualifying R&D.

Patent Box

Companies can apply a lower rate of Corporation Tax of 10% on profits earned after 1 April 2013 from patented inventions and certain innovations.

Companies can only benefit from the Patent Box if your company pays Corporation Tax and makes a profit from exploiting patented inventions.

Company must also

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own or exclusively license-in the patents have undertaken qualifying development on them

4) E- exporting program

UKTI’s E-Exporting Programme aims to help UK companies get their brands to millions of

global consumers and grow their business through online exports.

UKTI’s E-Exporting Programme helps UK companies who are:

new to selling online already selling online, but need help with specific issues experienced in online sales, but are looking to sell on multiple platforms globally

The programme enables to:

arrange a free meeting through local UKTI office to get expert international trade advice and support, and access to UKTI’s global network of contacts

meet a Digital Trade Adviser where relevant to help develop and implement an international online strategy

set up on e-marketplaces quickly and also identify new e-marketplaces around the world access better than commercial rates to list on some e-marketplaces, including lower

commission fees and ‘try for free’ periods access the ‘E-Expertise Bank’, a community of over 175 B2B/B2C service providers

offering free advice join mailing list for opportunities to hear from industry experts, network with like-minded

individuals and find out about e-commerce trends

E-Expertise Bank

For a specific question about selling online this bank can connect companies with an industry expert through our E-Expertise Bank. Its B2B/B2C service providers offer free advice to UK companies around:

landed cost calculation marketing and related services packaging, shipping, payment tax registration trademark registration website URL registration

5) Tradeshow access programme (tap)

Overview

The Tradeshow Access Programme provides funding in the form of grants for eligible businesses to attend overseas trade shows. The funding helps the business to gain:

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market knowledge experience in attending and getting the most from overseas trade shows advice and support from trade experts

How the service works

The grants are based around the Tradeshow Access Programme Calendar of Supported Events 2015 to 2016 (MS Excel Spreadsheet, 34.7KB) with an appropriate accredited Trade Challenge Partner leading the UK’s involvement at each event. Businesses usually take part as a group, led by the trade challenge partner for that trade show.

What business will get

UKTI can offer grants to eligible businesses taking part in the programme. The grants must be matched by the business’s own expenditure on direct exhibiting costs, for example:

exhibition space costs stand costs - including design, construction and stand dressing

In some cases grants may also be agreed to match against direct conference costs where the purpose of attending is to promote the business, for example:

conference fees cost of preparing conference promotional material

Category Current grant levels

Group exhibition (European location) £1,500

Group exhibition (long haul) £2,000

Group exhibition (typical high growth market) £2,500

Grant levels may be subject to change. The trade challenge partner will confirm the level of grant available and inform you about any service or management fee charges before you sign up.

6) Postgraduates for International Business

Overview

UKTI’s Postgraduates for International Business programme helps companies to employ the expertise of foreign language speaking students based at UK universities or Higher Education Institutions (HEI).

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Benefits

Hiring a student can help a company to address the language and cultural barriers associated with market entry and development. This could include assistance with:

website development research on new markets and strategy development market visit support development of international contacts customer/supplier liaison and customer service cultural issues marketing lead follow-up

How the service works

International Trade Adviser will help to decide whether business could benefit from hiring a foreign language speaking student. If so, business will work with a UKTI representative to draw up a brief job specification.

The specification will be fed through to the appropriate institution, who will advertise the job on behalf of business. Recruitment and selection will then be business responsibility, working with university or HEI contacts.

There are a number of rules and regulations around hiring a foreign language speaking student. As part of the service, university or HEI contact will be able to advise you on matters such as working hours, visa requirements and wages.

7) Exporting country guide

A comprehensive study for major countries on following factors

The guide contains information on:

challenges of doing business in that country benefits and growth potential of the market trade between the UK and that country opportunities in that country start-up and market entry considerations legal considerations tax and customs considerations entry requirements who to contact for more help

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8) CHINA

1) Privileged income tax policy was introduced to provide a corporate income tax rebate to

low-income SMEs. Similarly, another measure exempted such SMEs from value-added or

business tax.

2) Networking with other enterprises. Government encourages qualified enterprises to

expand their network. It also promotes specialization and coordination among SMEs so they

can pursue collective development of materials supply, production, sale, and technological

innovations in a bid toward market expansion. The state also promotes merger and

acquisition activities among SMEs, alongside reorganization and optimized 46 resource

utilization. Provision of government subsidy or loan facility is intended to support and

encourage SME technological innovations with large enterprises.

3) SME International Market Development Fund has been established under SME

Promotion Act drawing resources from central and provincial budgets. The fund partly

supports the market development activities of SMEs.

4) Marketing Support to promote SMEs to develop a broader market, “SME Promotion Act” was passed in China. The Government also encourages SMEs to participate in international trade and to exhibit their products. Details on exhibitions conducted in various

target markets, information and advisory services, and guidance and assistance on export

market entry plans of SMEs are some of the other measures taken by the Government.

Government’s preferential procurement for purchase of goods or services of SMEs is also

being reported. Chinese government is also making arrangements in giving preference to the

SMEs to secure certain share of government orders through bidding. The state also

encourages SMEs to attract foreign capital, advanced technology and management

experience in accordance with national policies, both in, setting up of Sino-foreign joint

ventures and Sino-foreign cooperative enterprises.

5) China imports export organization

Chinaimportexport.org is a brand of China why.

Located in Harbin city, chinaimportexport.org has been providing tailor-made sourcing solution to foreign companies, ranging from small business to fortune 500 corporations since 2006.

Their senior expert teams, consisting of sourcing consultants, quality control engineers, shipping experts, legal advisers, accountants, have served more than 500 foreign companies to import from China.

Their service networks cover the majority areas of mainland China, including coastal regions like Guangdong, Fujian, Zhejiang, Jiangsu, Shanghai, Shandong, Hebei, Tianjin, Liaoning, Heilongjiang and inland provinces like Henan, Hunan, Jiangxi, Anhui, Sichuan and Shanxi.

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Their service areas include: Product sourcing Factory Audit Quality inspection Shipping arrangement Customs clearance Export brokerage Business translation

6) Export tax rebate-

Export rebates (exemption), referred to as the export tax rebate, its basic meaning is the

refund of export products, domestic production and circulation in the actual payment of the

product tax, value added tax, business tax and special consumption tax. Export tax rebate

system is an important part of national revenue. Mainly through the refund of export tax

rebate exports to balance domestic taxes already paid the tax burden on domestic products, so

that the cost of their products not included into the international market and foreign products

to compete under the same conditions, thereby enhancing competitiveness and expand

exports foreign exchange.

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REFERENCES

1. https://www.commerce.gov/news/press-releases/2015/11/us-department-commerce-reports-showcase-benefits-trans-pacific 2. http://www.trade.gov/fta/tpp/?utm_source=hero&utm_medium=tradegov&utm_campaign=tpp 3. http://trade.gov/markets/ 4. http://www.export.gov/index.asp 5. http://www.trade.gov/neinext/index.asp 6. http://www.export.gov/ccg/ 7. http://www.kita.org/ 8. http://english.motie.go.kr/ 9. http://www.eria.org/SME%20Development%20in%20China_A%20Policy%20Perspective%20on%20SME%20Industrial%20Clustering.pdf 10. http://english.motie.go.kr/?cat=72 11. http://english.kotra.or.kr/kh/index.html 12. http://www.chinaimportexport.org/about/ 13. http://english.mofcom.gov.cn/ 14. http://english.eximbank.gov.cn/tm/en-TCN/index_635.html 15. http://www.ccpit.org.cn/ 16. http://www.oecd.org/trade/OECD-WBG-g20-gvc-report-2015.pdf 17. http://www.trade.gov/td/otm/aero.asp 18. https://www.gov.uk/government/organisations/uk-trade-investment 19. https://www.gov.uk/government/collections/uk-trade-and-investment-services-for-exporters#small-and-medium-sized-enterprises-smes 20. https://www.gov.uk/guidance/overseas-market-introduction-service 21. http://www.greatbusiness.gov.uk/ukti/?utm_source=servicepage&utm_medium=GOVUK&utm_campaign=EIG

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22. https://www.gov.uk/guidance/medium-sized-business