WorldTradeClub: Current News

Welcome to the Spring 2009 issue of the World eTrader, the World Trade Club's quarterly newsletter. Please be sure to visit the World Trade Club home page for our full calendar of upcoming 2009 programs and events.

Also, this Spring the club released a Membership Directory; please click here to view the directory. If you would like to be listed in the Directory read about benefits of membership and fill out an application here.

Trade Finance Crunch

by Tim Schipke

Many people do not realize that the current credit crisis affecting American banks and companies has also had a strong negative impact on trade finance and local exporters. Although the silver lining is that the trade balance has improved because imports have declined more quickly than exports, local exporters have had a harder time accessing or getting working capital lines for their exports. Working capital lines, which can be problematic for exporters even in good times because of the limitations U.S. banks have in securing foreign assets, have also become more expensive. Foreign buyers of Washington goods also have difficulty in accessing finance, particularly in developing or emerging markets. The situation is compounded by the fact that the dollar has strengthened against most foreign currencies, and it is difficult in many countries to borrow U.S. dollars. Even in a country like Japan, one of the largest economies in the world, the government has recently established a Export Bank specifically to loan U.S. dollars to Japanese companies. (Click here to read full article)

How Are Companies Doing in the Global Business Environment?

by Peter Guyer, Athena Marketing

We have all heard the news and read articles about how foreign markets, much like the U.S., are suffering in this recessionary period. Tight credit markets; lack of consumer discretionary income; rising unemployment; high inventories; declining demand; and governments needing to nationalize private banks. These factors do not even include declining home values (most household’s largest asset class) and plummeting equities.

The International Monetary Fund’s (IMF) World Economic Forecast expects global output to shrink by 1.3% in 2009, the first time it has fallen in 60 years. In the U.S. the housing market has plummeted by 30% (I heard there is a new board game being released soon – “Where’s My Equity?”). Thus far in 2009 manufacturing output in the U.S. has fallen at a rate of 20%, which has resulted in one of the highest unemployment rates we have seen in decades. (Click here to read full article)

The Economist, April 25th, 2009, p. 13.

Governor's Trader of the Year Awards Reception

The Governor’s Trader of the Year awards ceremony was held in March 2009 at the ShoWare Center in Kent. A group of 150 local and state government officials, business, logistics, finance and banking professionals were in attendance to congratulate the two winners, MulvannyG2 Architecture (Trader of the Year) and Sonosite, Inc. (Emerging Trader of the Year).

MulvannyG2 provides comprehensive architectural, planning and interior design services for office, retail and mixed-use facilities throughout the U.S. and the world. Headquartered in Bellevue and with regional offices in Oregon, California and Washington D.C., MulvannyG2 opened their first overseas office in Shanghai, China in 2002, strengthening their commitment to global business development. MulvannyG2 is currently involved in projects in China, Taiwan, Japan, Australia, Canada, Mexico and the UAE. Three of MulvannyG2’s most prominent local projects include the Greater Tacoma Convention and Trade Center, Redmond City Hall and Boeing World Headquarters. Additionally, MulvannyG2 was recognized by the Puget Sound Business Journal at one of the Top 25 Corporate Philanthropists in 2008, committing their resources to such causes as the Susan G. Komen Foundation, United Way, Children’s Hospital and Washington Education Foundation. (Click here to read full article)

About the World Trade Club

Established in 1946, the World Trade Club is one of the oldest and largest international trade organizations in Washington. Its mission is to provide a forum for the business community to acquire practical skills for international business. For more information, visit the World Trade Club at www.worldtradeclub.net.

Past Events: January 2009

More than 50 people joined World Trade Club at the January 2009 event, "Russia-U.S. Commercial Relations." Co-sponsored by the Federation for Russian-American Economic Cooperation, the speakers included Derek Norberg, Executive Director, Russian American Pacific Partnership (RAPP), and Director, FRAEC Business Services; Steve Crabtree, President, DRC International; and Bill Robinson, Attorney, William T. Robinson PLLC. The event was intriguing, informative, and timely, with a robust Q&A portion and excellent audience participation.

-Tembi Secrist, World Trade Club Event Chair
U.S. Commercial Service of the U.S. Department of Commerce

February 2009: Export Control Laws & Recent Developments

The World Trade Club presented a program on export control and related issues in February 2009. The speakers were Jim Dickeson, of Lynden Inc. and Chuck Routh of Garvey Schubert Barer. The presentation had a large turnout, and covered Export Control issues involving dealing with the Bureau of Industry and Security (BIS) of the Department of Commerce, International Traffic in Arms Regulations (ITAR) of the Department of State and the Office of Foreign Assets Control (OFAC) of the Treasury Department. It also covered such issues as the Foreign Corrupt Practices Act, the OECD Anti-Bribery Convention, compliance with Anti-Boycott laws and various export sanctions. There was also discussion of dramatically increased civil and criminal penalties under the new International Emergency Economic Powers Enhancement Act (IEEPA).

-Chuck Routh, Event Chair
GARVEY SCHUBERT BARER

April 2009: International Partnerships

Pacific Northwest exporters are increasingly faced with the necessity of engaging local partners to develop sales opportunities in some of the world’s most dynamic markets. Recognizing that challenge, the World Trade Club – with co-sponsor Garvey, Schubert & Barer – staged an all-day symposium on “Strategies for Selecting, Structuring and Managing International Partnerships" on April 20 in Seattle.

A total of sixteen speakers addressed all of the aspects of partnering, from identifying and qualifying eligible candidates, developing the business case and finalizing the deal to adapting management strategies and settling disputes through arbitration. Dr. Lawrence Spinelli, President of Overseas Private Investment Corporation (OPIC), was the keynote speaker.

Attorneys, accountants and other trade promotion professionals contributed their perspectives as did several small business principals who had successfully utilized relevant approaches in overseas markets; Colmac Coil of Colville, United Coatings from Spokane and Seattle’s Sharpe Mixers. More than fifty participants expressed enthusiasm for the symposium which was awarded Continuing Legal Education (CLE) credit hours by the Bar Association.

Warren Gross, World Trade Club Event Chair