The Changing World of International

  Jane Dauffenbach New WITCO Chair

Jane Dauffenbach, President of Aquarius Systems in North Prairie, is the new chair of the Wisconsin International Trade Council (WITCO).  WITCO advises the governor and the secretaries for the Department of Commerce and the Department of Agriculture, Trade and Consumer Protection on the state's role in the development of international trade.  It is directed to study the impact of national policies on Wisconsin business; state policies that could increase incentives for international trade; and trade services that are now provided and those that need to be further developed.  WITCO consists of 28 members including exporters, international lawyers and bankers, educators, labor representatives, and government and community leaders.

Aquarius Systems is the oldest manufacturer of surface water management equipment in the world.  The firm produces aquatic plant harvesters, marine trash skimmers, vegetation cutters, amphibious excavators, and canal cleaners that have been sold across the United States and to 40 countries around the globe. The machines are used in lakes, rivers, reservoirs, ports and harbors to control excessive weed growth, collect floating debris, and remove sediments.

The company was started by Jane's father and uncle in 1964 and began exporting in 1970.  Jane joined the firm in 1985 and became president in 1996. Aquarius Systems has made foreign sales a priority, and is not hesitant to explore and develop difficult markets. 

  Positive Results of Japan/China Mission

Over 70 business, academic, and government officials accompanied Governor Jim Doyle on the State of Wisconsin Trade Mission to Japan and China in September.  Members of the Wisconsin delegation visited Tokyo, Shanghai, Ningbo, Harbin, and Beijing from September 7-19, 2007.

The Governor was on hand to witness an agreement signing between Oshkosh Truck and Beijing Capital Airport for the purchase of six Wisconsin-made airport rescue firefighter trucks.  The Governor also participated in a ribbon-cutting ceremony celebrating the installation by TomoTherapy of Madison of its first image-guided radiotherapy machine in Beijing.

While the Governor met with senior government officials, business leaders, and executives with potential investors, representatives of Wisconsin exporters held one-on-one meetings with potential agents, distributors, and end-users/customers.  In Tokyo, delegation members participated in the joint meeting of the U.S. Midwest – Japan Association and the Japan – Midwest U.S. Association.  Milwaukee will be the site of next year’s meeting.

Business meetings in China were coordinated by the U.S. Foreign Commercial Service staff based at the U.S. embassy in Beijing or the consulate general in Shanghai as well as Wisconsin’s trade office in Shanghai.  A total of 44 one-on-one meetings were scheduled in China.

Gene Anguil, President of Anguil Environmental Systems, Inc. of Milwaukee, reported that “having traveled some throughout the world, I am aware of some of the difficulties in transferring myself and associates from one place to another.  To accomplish this task with 70 people of diverse backgrounds and expectations was definitely noteworthy.”

Trade missions are open to any Wisconsin business person seeking to expand their export business.  The destination and dates of the next Governor-led trade mission have not yet been determined.

  World Attitudes on Globalization

The 47-country Pew Global Attitudes Survey reports that people around the world broadly embrace key tenets of economic globalization but still fear the disruptions and downsides of participating in the global economy.  Overwhelmingly in both rich and poor countries, the surveyed see the benefits of increasing global commerce and free market economies.  In all 47 nations included in the survey, large majorities believe that international trade is benefiting their countries.  However, the survey of more than 45,000 people finds they are concerned about inequality, threats to their culture, threats to the environment, and threats posed by immigration.

There are signs that enthusiasm for economic globalization is waning in Western Europe and North and South America.  In contrast, there is near universal approval of global trade among the publics of rising Asian economic powers China and India.

The survey also finds that globalization is only one of several wide-ranging social and economic forces that are rapidly reshaping the world.  Strong majorities in developing countries endorse core democratic values, but people are less likely to say their countries are ensuring free speech, delivering honest elections or providing fair trials to all.  Conflicting views on the relationship between religion and morality sharply divide the world.  But on gender issues, the survey finds that a global consensus has emerged on the importance of education for both girls and boys, while most people outside the Muslim world also say that women and men make equally good political leaders.  In 46 of 47 countries surveyed, majorities say the environment should be given priority, even if this means lower growth and fewer jobs.  To view the full report, go to http://pewglobal.org/. 

  Nigerian Governor Visits Wisconsin

His Excellency Governor Ibrahim Shekarau, the Executive Governor of Kano State in Nigeria brought 15 members of his cabinet and business people from his state to Wisconsin from October 29-November 2, 2007 on a trade/investment mission.

The delegation’s goal was to learn about and identify partners in:

• commodity trading
• integrated agricultural farm system
• tannery production and management
• manufacturing
• agricultural machinery suppliers
• solid waste management
• biotechnology

The delegation met with the Mayor of Madison, Dave Cieslewicz; Secretary of Revenue Roger Ervin; and Secretary of Agriculture, Trade and Consumer Protection Rod Nilsestuen.  The group toured the University Research Park and attended presentations on farm management and waste handling technologies.  They also met with representatives of Wisconsin Manufacturers and Commerce and toured Aquarius Systems, Inc. in North Prairie and Case IH, S.C. Johnson, and InSinkErator in Racine.  The Milwaukee Metropolitan Association of Commerce hosted business meetings and a reception for the group in Milwaukee.  The delegation also visited Dubuque, IA and Chicago, IL.

Kano shares similar characteristics with Wisconsin.  It is a rich agricultural state and has the largest commodity market in West Africa.  Agricultural products of the state include guinea corn, maize, millet, wheat, rice, and legumes.  An abundance of livestock (sheep, goats, and cattle), has meant that Kano has the highest concentration of tanneries in Nigeria.  Kano is the second largest industrial center in Nigeria after Lagos.

To learn more about export opportunities in Nigeria or other parts of Africa, contact the Director of Bureau of Investment and Export, Mary Regel, mary.regel@wisconsin.gov, ph: (608) 266-1767 or Truphosa Mwololo, truphosa.mwololo@wisconsin.gov, ph: (608) 267-0587.

  Growing Elder Market in Brazil

Gazeta Mercantil, Brazil’s leading business publication, reports that a new study estimates that consumption by Brazil’s elderly and senior population will reach R$7.5 billion (US$4.1 billion) in 2008.  Official government statistics show that the number of the elderly surviving on half of the official minimum salary (R$380 or US$208.33 per month) has declined from 25.1 percent in 1996 to 12.4 percent in 2006.  Rising life expectancy has contributed to almost 10 percent of Brazil’s population, over 18 million people, being now classified as elderly.  In the next two decades the size of the elderly population is expected to double and make Brazil the sixth largest market for products targeting the elderly market.  The study was conducted by Indicator GFK, one of the largest market researchers in Brazil.

The Council of Great Lakes Governor and the Wisconsin Department of Commerce are organizing a trade mission to Argentina, Brazil, and Chile, April 19-29, 2008.  To obtain more information on the mission or export opportunities in Brazil, contact Commerce’s Latin America Specialist, Ms. Susan Dragotta, susan.dragotta@wisconsin.gov, ph: (262) 691-5147.

  World Dairy Expo Results

International visitors to this year’s World Dairy Expo held October 2-6 in Madison drew 2800 visitors from other countries.  Mexico was home to the largest concentration of international attendees (275); followed by Canada (269), Germany (201), Argentina (184), and Italy (156).

Fifteen Wisconsin companies participated in sales meetings with delegation of four Chinese feed ingredient buyers visiting during the World Dairy Expo. The Feed Ingredients Buyers Mission was organized by the Wisconsin Department of Agriculture, Trade and Consumer Protection and funded through the Food Export Association of the Midwest.  Major products evaluated by the buyers included DDGS, whey, functional antibody ingredients, yeast, and equipment.  The Chinese buyers reported US$12 million in new purchases as well as new contacts and increased awareness of Wisconsin products that will lead to future export sales as a result of their visit to World Dairy Expo.  For more information about agricultural buying missions, contact Lora Klenke, Director of the Wisconsin International AgriBusiness Center, lora.klenke@datcp.state.wi.us, ph: (608) 224-5119.

  Delays at U.S./Mexico Border

According the New York Times, crossing the border from Mexico into the United States is slowing considerably as U.S. border agents have stepped up scrutiny in a dress rehearsal for new rules, scheduled to take effect in January that will require Americans to show a passport or other proof of citizenship to enter the United States.  The new requirements are part of the Western Hemisphere Travel Initiative, which Congress adopted in 2004.  Border officials said agents along the southern border were asking more returning United States citizens to show a photo identity document as well as conducting more checks against law enforcement, immigration and anti-terror databases.

U.S. Customs and Border Protection maintains a website with information on border crossing with both Canada and Mexico, http://apps.cbp.gov/bwt/.  The Canadian Border Services Agency has a website that shows wait times to enter Canada at various border crossing points, http://www.cbsa-asfc.gc.ca/general/times/menu-e.html.  The site is refreshed every 10 minutes.

  Container Shortage, Rate Hike Loom

Overseas carriers are predicting a container shortage due to the ongoing explosion in U.S. grain exports and the upcoming cotton-shipping season in November, according to the Agriculture Transportation Coalition.  Most ships on the West Coast are going out full, and volumes are sufficiently high that carriers imposed general rate increases at the beginning of September and another on Oct. 15.

  Opposition Party Wins Polish Elections

A pro-business opposition party ousted Prime Minister Jaroslaw Kaczynski's government in Polish parliamentary elections on October 21.  Donald Tusk's Civic Platform won 209 seats in the 460-seat Sejm, the lower and more powerful house of Parliament.  That was short of the 231 needed for a majority, but a coalition with a smaller party would hold 240 seats.

The hard-fought campaign generated the highest voter turnout for any parliamentary elections since the fall of communism in 1989.

The election result means Poland will no longer have twin brothers holding the two highest offices; outgoing Prime Minister Jaroslaw Kaczynski's brother, Lech Kaczynski, will remain the country's president with a term lasting until 2010. Both Tusk and Kaczynski favor good relations with the United States, but Tusk wants the country's 900-strong detachment in Iraq to come home.  He also has said that Poland should drive a tough bargain in return for hosting a U.S. missile-defense base.  Mr. Tusk is expected to have more cordial relations with the European Union than his predecessor.

  New Argentine President Kirchner

Senator Cristina Fernández de Kirchner, the candidate of the center-left Peronist party and the wife of current President Néstor Kirchner, became the first elected female President of Argentina.  She won 45 percent of the vote on Sunday, October 28, just enough to avoid a run-off election.  In second place was centrist Elisa Carrió, who received 23 percent of the vote.  Carrió appealed to the urban middle class and carried the major cities of Buenos Aires, Córdoba and Rosario, while Fernández de Kirchner was stronger in suburban and rural areas.

President Néstor Kirchner is credited with reviving Argentina’s economy after the crisis of 2001.  While the economy has certainly demonstrated gains, thanks in part to commodity exports, several important issues remain to be resolved.  The new President will face issues ranging from corruption and increasing crime, to inflation and energy shortages.  Fernández de Kirchner will take office on December 10 for a four year term.  It is widely believed that her husband will run again after her term, setting the stage for the two to alternate four-year terms.

The Council of Great Lakes Governor and the Wisconsin Department of Commerce are organizing a trade mission to Argentina, Brazil, and Chile, April 19-29, 2008.  To obtain more information on the mission or export opportunities in Argentina, contact Commerce’s Latin America Specialist, Ms. Susan Dragotta, susan.dragotta@wisconsin.gov, ph: (262) 691-5147.

  New Procedures for Entering Japan

As part of new anti-terrorism measures, all travelers entering Japan will now require a fingerprint and photo identification.  The following procedures will be  experience when entering Japan:

• The traveler will present their passport to an immigration officer
• The traveler will be asked to place the index finger of both hands on a digital reader
• This scan will be read and stored electromagnetically
• A face shot will be taken with a camera located on top of the digital reader
• The immigration officer will conduct a short interview before returning the passport to the traveler.

Permanent residents, people under 16 years of age, and those traveling under “Diplomatic” or “Official” status will be exempt from the process.  Anyone else refusing to comply with the new procedures will not be permitted to enter Japan and will be required to leave the country.

  Costa Rica Approves DR-CAFTA

Costa Rica’s first-ever nationwide referendum on October 7 resulted in a narrow approval of the country’s participation in Dominican Republic – Central America Free Trade Agreement (DR-CAFTA).  With nearly 52 percent of voters supporting the agreement and 48 percent opposing it, the affirmative vote means DR-CAFTA will be ratified by Costa Rican lawmakers.  However, they must also approve more than a dozen laws to implement the agreement before it can take effect.  The government will also need to submit several laws aiming to strengthen the country’s competitiveness and improve the business environment before DR-CAFTA comes into effect.

El Salvador, Guatemala, Honduras, and Nicaragua approved the agreement in 2006 and the Dominican Republic implemented it on March 1, 2007.  Implementing legislation for the CAFTA-DR passed the U.S. Senate in June 2005 and the House of Representatives in July 2005 and was signed by the President in August 2005.

  Trade Agreements Website

As part of an interagency effort between the U.S. Departments of Agriculture, Commerce, State, and Treasury and the Office of the United States Trade Representative, a new web site, http://www.tradeagreements.gov/, has been launched to provide the public with the latest information on the United States' trade agreements.  The site will be regularly updated with news about existing agreements, as well as pending free trade agreements with Peru, Colombia, Panama and South Korea.

  Grants Available for Mexico Projects

The Northeast Wisconsin (NEW) International Business Project was awarded a two-year grant of federal funds to pursue education- and business-related projects in Mexico.  A total of $50,000 will be made available to companies between July 2007 and June 2009 ($25,000 available during each year of the grant award).  Companies can be reimbursed for specific expenses for participating in an approved trade show or matchmaker trade delegation event in Mexico.  A company must apply for a grant and be approved prior to attendance.

Reimbursable expenses include:

• Trade Show or matchmaker trade delegation participation fees;
• Costs associated with shipping displays, samples, catalogs, or advertising materials;
• Costs incurred at a trade show or matchmaker delegation event for utilities, booth construction, or display modifications;
• Costs associated with language translation of brochures and product literature or the use of translation services and interpreters at a trade show or matchmaker delegation event.

The following may not be reimbursed:

• Travel Costs
• Lodging
• Employee Salaries
• Meals and Entertainment

The overall project is centered around a recently formed sister-city relationship between Green Bay, Wisconsin and Irapuato, Mexico.  This collaborative relationship was formalized in August 2006 with the signing of a Memorandum of Understanding that will promote both educational and business opportunities for both countries.  The Northeast Wisconsin (NEW) International Business Project is a partnership of the Northeast Wisconsin Technical College, the University of Wisconsin – Green Bay, the Green Bay Area Public School District, and the Green Bay Area Chamber of Commerce designed to improve academic teaching of international business and increase the opportunities for local businesses to compete in the global marketplace. 

For additional information including application materials, contact Mr. Fred Monique, Program Manager at the Northeast Wisconsin International Business Development Program, monique@titletown.org, ph: (920) 496-2118.

  Business Matchmaker Mission to the British & Emerald Isles

The Wisconsin Department of Commerce will lead a Business Matchmaker Mission to Ireland and the United Kingdom, March 10 - 14, 2008.  The mission is open to all Wisconsin companies that are either already doing business there or those that are interested in selling into those markets for the first time.  The trip will also be used to make contact and develop relationships with prospective European investors.

The U.K. is Wisconsin’s 5th largest export destination and most significant trading partner in all of Europe.  It is the fourth-largest economy in the world, the second-largest economy in the EU, and is a major international trading power.  The economy is one of the strongest in Europe and is highly developed, diversified, and market-based.  Ireland continues to be one of the fastest growing economies in the EU and is now entering its thirteenth consecutive year of economic expansion.  The Irish economy is extremely open to and dependent upon international trade and is a very receptive market to U.S. products.  Dublin is considered to be a model international financial services center and continues to spearhead Ireland's economic growth.  Both countries offer strong, traditional markets for Wisconsin-made products and services.

Wisconsin's trade office in Europe will arrange customized business appointments with pre-qualified prospective representatives, distributors, partners or end-users throughout the U.K. and Ireland for mission participants.  

If you are interested in finding out more information about the mission, please contact our European Specialist, Mr. Brad Schneider, brad.schneider@wisconsin.gov, ph: (920) 420-1796. You can also access the necessary registration information and documents, by clicking on Mission Registration Form and Mission Appointment Form. Please be aware that the final registration deadline is set for Friday, January 4, 2008. Sign up before December 14 and you'll receive a $150 discount on the registration fee.

  ABC Mission

There is still time to join a multi-state trade mission organized by the Council of Great Lakes Governors and the Wisconsin Department of Commerce that will visit Argentina, Brazil, and Chile April 19-29, 2008.  For more information about the trade mission or South American markets in general, contact our Latin American specialist, Ms. Susan Dragotta, susan.dragotta@wisconsin.gov, ph: (262)691-5147.