International exporting conference offers a world of opportunity for those in attendance

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The MIDJersey Center for Economic Development hosted an International Business Opportunities conference on Wednesday, giving businesses and officials the opportunity to network with foreign delegations and share best practices and resources for U.S. businesses to export goods and services internationally.The conference, at the Forsgate Country Club in Monroe Township, included consul generals from South Africa, Indonesia, Colombia, Israel and Canada, as well as some of the state’s top business leaders and government officials.

“No matter how small of a business you may be, you have opportunities to access international markets,” said Robert Prunetti, interim executive director of MIDCED and president and CEO of the MIDJersey Chamber of Commerce. “The state of New Jersey has very robust and aggressive programs to help businesses do that … especially since 85 percent of future growth will occur outside the U.S.”

Exports are in demand more than ever due to the increasing value of the “Made in the U.S.A.” label. As costs of moving goods overseas increases and quicker turnarounds are more frequently required, the value of the American dollar, U.S. better business practices and higher quality products are often desired by international importers.

The proof is in the numbers.

The U.S. Department of Commerce’s International Trade Administration recently announced that merchandise exports from the New York/Newark/Jersey City metropolitan area increased 5 percent from 2012 to 2013, and data from the 2013 U.S. Census Bureau, Foreign Trade Division, specified $36 billion in goods each year is exported to 48 markets from New Jersey alone.

“New Jersey exports to over 200 countries, with its leading trading partners being Canada, Mexico, the Netherlands, the United Kingdom and Japan,” said Richard H. Bagger, senior vice president of corporate affairs and market access for the multinational biopharmaceutical Celgene Corporation.

Having also recently served as Gov. Chris Christie’s chief of staff, Bagger gave many insights into New Jersey’s economic future.

“Our pathway to growth in New Jersey leads through international trade and an export-based economy,” Bagger said. “Trade overall accounts for over a million jobs in New Jersey and is growing 11 times faster than the rest of the economy.”

Senate President Stephen Sweeney (D-West Deptford) delivered the event’s keynote address on better utilizing the Port Authority — responsible for the second-biggest port in the nation — and the need for the governor’s administration to develop a plan to finance the Transportation Trust Fund.

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“We are seeing how important transportation improvements are with the raising of the Bayonne Bridge, which will put New Jersey in a great position to handle increased shipments that will come as a result of the Panama Canal expansion,” Sweeney said. “Improving the ways and means of transportation in New Jersey means better access to the Port, which means more business opportunities — but a comprehensive plan to do this across our state has been left untouched.”

Aside from what the state could do to improve its role in New Jersey’s economy, two members of the Business Action Center’s Office of International Business Development and Protocol — Director Eddy S. Mayan and international business advocate William E. Spear — stressed their department’s ability to consult with and provide market research and analytics for New Jersey businesses on exporting and international trade opportunities free of charge.

When asked by moderator Debbie Hart, CEO of BioNJ, what new market entrants should know about the export business, panelists had a variety of advice for small businesses.

“It’s very easy to say, ‘Go forth and trade,’ but there are more than 130 economies out there — where are your company’s products best suited?” Spear said.

Spear recommended businesses start by looking into the 20 countries with which the U.S. has free trade agreements to reduce barriers, protect interests and enhance the rule of international law.

Regina Gordin, regional director for the Export-Import Bank of the U.S., agreed that it is important to compile data and research before choosing markets in which to export.

“People often think that because they get an inquiry from a particular part of the world that that is the country in which they should focus and export,” Gordin said. “That may or may not be the case.”

Toni Corsini, regional manager for the U.S. Small Business Administration Office of International Trade, stressed the fact that more than 98 percent of U.S. exporters consist of small and medium-sized companies.

“Many times, especially here in the U.S., people in these business communities think their product isn’t sophisticated enough,” Corsini said. “But anything that (carries) the Made in the U.S.A. label? There isn’t anything better.”

Corsini also noted that in fiscal 2013, $2.9 billion in exports were supported by SBA export programs.

Roger S. Cohen, lead international trade consultant for the New Jersey Small Business Development Centers, reiterated the importance of education for state manufacturers and distributors on the opportunities available and how to best approach markets.

“You need to actually go to the market,” Cohen said. “I don’t think that we can really rely on the Internet to exchange everything by email and never meet the customer.”

Kimberlee Phelan, partner at WithumSmith Brown, also discussed how important it is for businesses to educate themselves on various tax practices around the world and the financial incentives they could be receiving for manufacturing and exporting.

“Structuring your entrance into that market is key; if you don’t structure properly, you could end up paying double taxation,” Phelan said.

Nevena Simidjiyska, an associate with Fox Rothschild, warned that companies may also be unaware that they already are exporting, and could face hefty financial fines from the government.

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“An export is the transfer of an article, software, or technical data outside of the U.S.,” Simidjiyska said. “If you simply email engineering specs or instructions for your product to Germany, you’ve exported the product to Germany. If you download software and upload it to a cloud server in Mexico, you’ve exported the product to Mexico.”

She also seconded the need to visit markets personally.

“You need to document how and where your customers plan to use your product,” she said. “You can also be on the hook for where your product is transferred and how it is used.”

Lastly, she warned that an export doesn’t always mean a physical sale.

“Services are also controlled by the state in a similar manner to products,” she said.

Despite all warnings and potential compliance issues, Michael Thompson, vice president of Fulton International Group, noted that 95 percent of consumers are outside the United States.

“I don’t know why you wouldn’t want to jump out there and try to take advantage of that,” he said.

The MIDJersey Chamber of Commerce serves as the hub for business resources for the central New Jersey region. Its nonprofit foundation, MIDJersey Center for Economic Development, helps create collaborative initiatives to promote the retention, expansion and attraction of businesses in the mid-Jersey region.

Visit MIDCED for more information on the event and a complete list of speakers and sponsors.

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