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WISCONSIN WORLDWIDE

Vol. 5 #5, May 2006

  Overseas Directors in Wisconsin May 7-13

 Canadian Flag Brazilian Flag Chinese Flag EU flag Mexican Flag
The directors of Wisconsin’s five overseas trade promotion offices will be in Wisconsin next week.  They will be speaking at several events in different parts of the state and will also be available for one-on-one appointments.  This annual trip is an excellent opportunity to meet the international “eyes and ears” of Wisconsin businesses and discuss business opportunities and plan strategies for key markets around the world. 

The Wisconsin Department of Commerce has contract offices in Canada, Mexico, Europe, Brazil, and China.  The services of these offices are designed to help Wisconsin firms successfully pursue export sales.  The Market Viability Study helps a firm review the fit between the company’s products or services and the needs of the foreign market - Can the product be sold there?  Agent/Distributor & Client/End-User Searches identify who is interested in representing or buying a Wisconsin product.  Background Checks can be conducted on prospective partners or business associates in order to increase trust and decrease unpleasant surprises later.  Arranging face-to-face meetings is an important goal of the overseas offices, and staff can help make business trips run smoothly by locating translators, local legal and accounting representation, and assistance with trade show logistics.  While the overseas offices try to help Wisconsin businesses proactively plan for success, they can also be called upon for assistance when export emergencies cause shipments or deals to go awry.

The directors will speak at several events about current developments and market conditions in their territories.  They will also be available for one-on-one consultations about a firm’s individual needs in their markets.  Scheduled events include:
Tuesday  
May 9
Morning  
Milwaukee  
International Credit Executives Meeting, Doing Business in China seminar, and Individual Meetings
Afternoon  
Milwaukee Wisconsin International Trade Conference and Individual Meetings
Wednesday  
May 10
Morning Milwaukee Individual Meetings
Afternoon Neenah Global Perspectives Lunch and Individual Meetings
Thursday  
May 11
Morning Madison Individual Meetings
Afternoon Madison Joint Wisconsin Innovation Network &
Madison International Trade Association event
Afternoon Eau Claire  
Doing Business Globally - Wisconsin Meets the World and Individual Meetings
Friday
May 12
Morning Madison Individual Meetings

Participants in the annual directors’ visit include:
•    Ms. Magda Völker, Director, Wisconsin Trade Office in Brazil
•    Ms. Nancy Ward, Director, Wisconsin Trade Office in Canada
•    Mr. Paul Swenson, Director & Ms. Jane Zhang, Assistant Director, Wisconsin Trade Office in China
•    Ms. Kara Smith, Director & Ms. Kate Clarke, Director, Wisconsin Trade Office in Europe
•    Mr. Vincent Lencioni, Director & Mr. Marcos Hernandez Rivas, Assistant Director, Wisconsin Trade Office in Mexico
While Wisconsin does not currently have an office in Japan, Mr. Takahiro "Taka" Hagisako, Business Advisor for the Japan External Trade Organization (JETRO), will be traveling with the group.  Mr. Hagisako is based in Madison.

To learn more about the individual backgrounds of each of the directors, click here.

To schedule an individual meeting with a specific director, please contact:
Milwaukee (May 9-10) and
Madison (May 11-12)
Neenah (May 10) Eau Claire (May 11)
Jennifer Winner
ph: (608) 266-0413
jennifer.winner@wisconsin.gov
or
Christine Stamm
ph: (608) 264-7824
christine.stamm@wisconsin.gov
Brad Schneider
ph: (920) 420-1796
brad.schneider@wisconsin.gov
John Konkel
ph: (715) 833-6441
jkonkel@cvtc.edu


  Intellectual Property Protection in China

Protecting and enforcing the intellectual property rights of U.S. businesses in China is critical to the success of many Wisconsin businesses.  The U.S. Department of Commerce is initiating a new China IPR webinar series to help firms learn more about this important issue. Two special kickoff programs have been scheduled for May: 

May 11 2:00pm – 3:30pm EST
Latest on IPR in China: JCCT & Special 301
Briefing by U.S. Government officials on the 2006 Joint Commission on Commerce and Trade (JCCT) and the Special 301 Report

May 18 2:00pm – 3:30pm EST
China’s 2006 IPR Action Plan Briefing by China’s Counselor for Intellectual Property from the Embassy of the People’s Republic of China in the United States

To register for the May events, please send your contact information to ChinaIPR@mail.doc.gov by May 1.  From June until December 2006, subsequent webinars on related topics will be held on the second Thursday of each month from 2pm – 3:30pm EST. The programs are free. No special software or configurations on your computer are needed to participate. You need only a phone line and computer with an internet connection.  Dial-in and Log-in Instructions will be sent to participants a week before the program.

To be added to the U.S. Department of Commerce’s mailing list, or to register for the May programs, please send your contact information to ChinaIPR@mail.doc.gov.   If you have any questions, please contact Ellen Szymanski at the U.S. Department of Commerce, ellen.szymanski@mail.doc.gov, ph: (202) 482-5244.

  U.S./Canada Lumber Dispute Resolved

Lumber GraphicThe Canadian and U.S. governments struck a historic deal on April 27 to end the bitter softwood lumber dispute that has plagued bilateral relations for many years.  Under the seven-year agreement, Canadian producers of softwood lumber, used primarily for construction, would be subject to a new export tax and Canada would receive back 80 percent of import taxes that have been collected by the United States over the last four years -- about $4 billion.

The agreement was announced after Canadian Prime Minister Stephen Harper's government secured last-minute changes that won the support of governments in the key exporting provinces of British Columbia, Quebec, and Ontario.  "I am pleased to announce today that the United States has accepted Canada's key conditions for the resolution of the softwood lumber dispute," Harper told the House of Commons.

As stated by the Prime Minister’s Office, the Canadian conditions accepted by the United States included:
•    Stable and predictable access to the U.S. market: no quotas and no tariffs at current prices
•    Repayment of duties: at least four billion dollars will be paid out to Canadian producers
•    Provincial flexibility: there will be different compliance options in response to varying operating conditions across Canada and
•    Certainty:  the deal runs for a minimum of seven years with options for renewal at a later date

The politically divisive dispute was based on U.S. industry complaints that provincial governments, which regulate the logging by private firms on crown land, unfairly subsidized exporters by charging extremely low fees.  Canada had won a series of major decisions before panels established under the North American Free Trade Agreement, although the United States also scored partial victories before panels of the World Trade Organization.

  Mark of Excellence in Global Business

A new professional certification has been created to recognize knowledge and expertise in global business.  The Certified Global Business Professional (CGBP) designation is awarded to professionals with skills and abilities in the five main areas (domains) of global business: global business management, global marketing, supply chain management and trade finance.  The CGBP certification is a benchmark for competency in global trade. For the advanced person, it validates his or her knowledge and experience. For those new to the field, the CGBP is a professional development goal ensuring a full understanding of the profession. The credential helps diversify everyone’s skills, assuring an understanding of a broad range of topics in global commerce rather than just the specifics of the field you are currently involved in. For employers, it provides assurance that employees or job candidates are engaging in global business at the professional level required in today’s competitive environment.

Nine individuals from Wisconsin were among the first group of individuals in the nation to have demonstrated their knowledge across the profession by earning the Certified Global Business Professional (CGBP) credential within the last year.

The credential was developed by the North American Small Business International Trade Educators (NASBITE), a professional organization of global trade practitioners, educators and trainers.  Exam development and proctoring is handled by PES, a professional exam developer with over 60 years of credentialing experience. It is administered twice a year (January and June) in 14 cities across the country, including Chicago, and in Mexico City. The next national exam will be given on Saturday, June 17, 2006 at Loyola University (downtown Chicago).

To receive the CGBP designation, a candidate must pass the CGBP exam and have completed either two years of college level international trade study or have worked in global commerce for a minimum of two years.  To learn more about the credential and take the practice exam visit the NASBITE website. To discuss the certification and the Waukesha County Technical College study course being developed to support the CGBP exam, contact Aleda Bourassa, CGBP, WCTC International Trade Specialist, abourassa@wctc.edu, (262) 691-5219.

  Avoiding Roadblocks to Increased NAFTA Sales

Almost half of Wisconsin’s exports cross the border into Canada or Mexico.  Incorrect paperwork can cause delays and expose exporters to fines, penalties, and audits.  To educate Wisconsin exporters on the proper way to complete NAFTA Certificates of Origin and other documentation, one of the afternoon sessions of the 42nd Annual Wisconsin International Trade Conference will be dedicated to these major destinations for Wisconsin exports.  The session is intended to help Wisconsin business people learn about more efficient processes that can save their companies time and money.

Presenters with hands-on experience in NAFTA compliance, from both the Canadian and Mexican perspectives, will discuss tariff classifications, NAFTA Certificates of Origin (including rules of origin, and examples of tariff shifts and regional value content calculations), Mexican NOMs (Normas Oficiales), border procedures, and record keeping.  Members of the sales, marketing, logistics, customer service, credit, finance, and compliance departments within your company can benefit from a better understanding of NAFTA requirements and learn the secrets to smoother cross border shipments, sales, and profits.

Presenters will include:
•    Moderator: Rob Gardenier - President of M. E. Dey & Co., a Milwaukee-area customs broker and freight forwarder
•    Louisa Elder – Trade Specialist, Western Hemisphere Customs and Trade Compliance, Abbott Laboratories, a manufacturer of pharmaceutical and medical products
•    Marcos Hernandez Rivas – Assistant Director of the Wisconsin Trade Office in Mexico City
•    Julie Milliard – Compliance Verification and Services Office of the Canada Border Services Agency
•    Allen Vigil – Director of Business Development for Grupo Logistics, a customs broker and logistics firm operating at many US/Mexico border sites
Vince Lencioni and Nancy Ward, Directors of Wisconsin's trade offices in Mexico and Canada, will also participate in the Q&A session.

The Wisconsin International Trade Conference is the largest annual gathering of international business people in the state.  It will take place on Tuesday, May 9, 2006 at the Italian Community Center, 631 East Chicago Street, Milwaukee.  Other sessions will address the Middle East and North Africa, China, Brazil, Russia, and India.  The Governor’s Export Achievement Awards and the Small Business Administration Exporter of the Year Award will be presented at the conference luncheon.  Additional information and registration instructions can be found at the Milwaukee World Trade Association's website.

  Be Part of the Beijing Olympics

There are just over 800 days until the opening of the 2008 Olympic Games in Beijing.  There are many construction projects yet to be completed to make the city ready for the many athletes, officials, and spectators who will descend upon the Chinese capital.  An estimated 1,500 billion RMB (US$187 billion) in infrastructure projects have been planned.  It is estimated that the cost of building materials and architectural decoration will be up to 100 billion RMB (US$12.5 billion).  There is still time for Wisconsin exporters to make the contacts that can lead to involvement in some of these projects.

Wisconsin’s Trade Office in China is currently recruiting participants for the 9th China Beijing Olympic Building Materials Expo to be held July 26 – 28, 2006.  Last year’s event covered 10,000 square meters.   This year the Expo is expanding the floor space to four halls, twice as that of last year.  Energy-saving building and decorating materials will be a new highlight in the building industry.

Exhibition Categories:
•    Water-saving and intelligent sanitary ware
•    Green building materials
•    Energy-saving doors, windows & structures
•    New building materials and steel structures
•    New tile materials and technology
•    Kitchen equipment and hardware
•    Panel walls, building automation, building security
•    Chemical building materials
•    Stone and technology

Staff from the Wisconsin Trade Office in China will be available to collect trade leads and to distribute your materials.  The cost of catalog show participation is $100.  Paul Swenson, the Director of the China office, will be in Wisconsin the week of May 8-12 and will be available to discuss the Expo and other strategies to use to get your products included in Olympic projects.  For more information on the Chinese market, contact Ms. Beng Yeap, beng.yeap@wisconsin.gov, ph: (608) 266-1480.  Additional information on the Beijing Olympics goal of being environmentally friendly can be found by clicking here.

  EU Addresses Increased Counterfeiting

EU FlagThe European Union is proposing new legislation to combat counterfeiting and piracy at a pan European level.  "This directive contains for the first time penal sanctions, including jail, to combat this crime," noted Justice Commissioner Franco Frattini.  The proposed measures are expected to bring national criminal laws closer together and to improve European cooperation in the fight against piracy.

According to the proposed directive, an obligatory sentence of four years imprisonment would be the minimum if the crime carries a serious risk to the health and safety of individuals.   There would also be a fine of at least €300,000 (US$373,989).

Statistics published by the European Commission show a significant increase in counterfeit and piracy cases.  Seizures of counterfeit goods in 2004 increased by almost 1000% compared to 1998.  Mr. Frattini noted that as more counterfeited products are now household items rather than luxury goods, there are increased potential impacts on individual health.   Seizures of counterfeit food products and beverages increased by 200% in 2005 compared to 2003.

  Ambassador Speaks on U.S./Venezuela Relations

While the presidents of Venezuela and the United States may not like each other very much, commercial ties between the two countries are very close.  The United States is Venezuela's most important trading partner, representing about half of both imports and exports. In turn, Venezuela is the United States’ third-largest export market in Latin America, purchasing U.S. machinery, transportation equipment, agricultural commodities, and auto parts.  With its major oil reserves, Venezuela will have an important place in U.S. policy considerations.  Bernardo Alvarez, Venezuelan Ambassador to the United States, will address the current state of U.S.-Venezuelan Relations in a presentation at UW-Milwaukee (Merrill Hall Room 131, 2512 East Hartford Avenue) on Friday, May 12, 2006 at 7:00 pm.

Ambassador Alvarez took up his current post in 2003. He has also been a professor at the School of Political and Administrative Studies at the Universidad Central de Venezuela, vice minister of hydrocarbons (2000-03) at the Ministry of Energy, executive secretary and Venezuelan representative for the Forum on Debt and Development (1988-91), and chief of the Research and Development Division at the Venezuelan Institute of Foreign Trade.

The presentation is free and open to the public.  It is sponsored by the UW-Milwaukee's Institute of World Affairs, Center for Latin American and Caribbean Studies, Africology Department, Department of Spanish and Portuguese; Peace Action-WI, and the Bolivarian Circle of Milwaukee For more information, please send an email to:  mkecircle@gmail.com.

  International Food Buyers to Visit Milwaukee

Shopping cart graphicA delegation of 18-20 key retail and foodservice food buyers from Asia, Mexico, Central and South America, Europe, and Canada will be visiting the Midwest and making a stop in Milwaukee on July 25. This will be a great opportunity for Wisconsin food and beverage producers to introduce their firms to a variety of foreign decision makers and gain insights to their products’ export potential in different parts of the world.  The Wisconsin International AgriBusiness Center will arrange one-on-one meetings for Wisconsin business people and members of the delegation.  To request buyers’ profiles and a registration form, contact Lisa Stout, lisa.stout@datcp.state.wi.us, ph: (608) 224-5126.


  Potato Pest Could Affect Exports

Potato exports are not small potatoes in Wisconsin and the discovery of a pest in Idaho has the potential to affect sales from our state.  On April 19, 2006, the Idaho State Department of Agriculture and the USDA announced that the pale potato cyst nematode had been detected in Idaho. This is the first time that this particular pest has been reported in the United States.

The pale potato cyst nematode is widespread in Europe and South America. In North America, it had previously been detected only in Newfoundland, Canada. The nematode has the potential to cause significant crop losses if populations reach critical levels.  Canada has announced a temporary prohibition on the import of potatoes and soil from Idaho, pending further information on the distribution of the nematode. It is expected that Japan (which only recently opened its border to potatoes from the U.S.) and Mexico will follow suit soon.

This pest has never been detected in Wisconsin. The Wisconsin Department of Agriculture, Trade and Consumer Protection Pest Survey and Control Section and the Plant Industry Laboratory have sampled Wisconsin potato fields for cyst nematodes periodically since 1989.  The situation in Idaho points out the value of early detection of exotic pests. If the occurrence in Idaho is limited to a few fields or a small region of the potato growing area, eradication or quarantine remain feasible options.  When exotic pests go undetected until they have established themselves over a wide area, the options in the toolbox grow limited.  In 2005 Wisconsin exported $1.6 million worth of potatoes.

  U.S. Trade Negotiations with Malaysia and Korea

Where economic issues are concerned, the United States gives more attention to Asia than to any other region in the world, says Deputy U.S. Trade Representative Karan Bhatia.  While addressing the Asia-Pacific Council of American Chambers of Commerce in Manila he pointed out that trade in U.S. goods with South and East Asia currently accounts for one-third of total U.S. trade, up almost 70 percent over the past 10 years.  He added that U.S. investment in the region "has more than tripled in that time frame."

On March 8 U.S. Trade Representative Rob Portman announced the Administration’s intent to negotiate a Free Trade Agreement (FTA) with Malaysia.  “Malaysia has been at the forefront of the economic dynamism transforming Asia in recent years," Portman said.  The United States already has a free trade agreement with Singapore and is negotiating one with South Korea.  A public hearing on the Malaysia negotiations will be held in Washington, DC, beginning on May 3, 2006, and will continue as necessary on subsequent days. Information on how to submit comments or testify at the hearing can be found in the Federal Register.  Additional information on current and potential free trade agreements can be found on the U.S. Trade Representative’s website.

Korea is the United States’ seventh largest trade partner and Malaysia ranks #10.

  Environmental Mission to China

Map of ChinaThe export promotion agencies in Wisconsin and Minnesota have cooperated on several international environmental projects in Thailand, Vietnam, and Sri Lanka over the last few years.  They are now exploring a joint effort in China.  The Minnesota Trade Office will lead a delegation of companies to the 2nd exhibition on Green Industry in Jinan, Shandong Province, China from September 4-12, 2006.  One of China's wealthiest and most industrialized provinces, Shandong offers many opportunities for exporters of water and waste water treatment technology, air pollution control equipment and other environmental technologies.

Brian Cohen, Vice President of International Sales at Aeration Industries of Chaska, Minnesota has already visited Shandong Province and observed that the paper manufacturing sector, a huge industry in Shandong, is in need of wastewater treatment solutions.  Mr. Cohen said that "Most Chinese fairs focus on over saturated large cities such as Beijing or Shanghai, whereas we have found the large majority of our sales have come from secondary areas where there is better opportunity to create relationships and you find less competition (domestic and foreign). Therefore we see this exhibition as a golden opportunity to conduct business in Shandong by meeting many industrial end users, government officials and representative candidates at the exhibition."

Wisconsin firms interested in joining the mission can contact Ms. Beng Yeap, beng.yeap@wisconsin.gov, ph: (608) 266-1480.