Vol. 3, Issue 1
Pacific NW Trade eNews
4th Century BC Business Advice: Yield and Overcome
That is what China’s legendary philosopher, Lao Tzu, might say in times like these. Changing, adapting, adjusting, and innovating with a trade landscape in flux is what it takes not only to overcome the challenges we face, but to thrive in them.  Our first webinar was all about this.
First Webinar on the impact for SME engaged in trade
In this first collaborative effort with our partners---the first of the Columbia Bank Going Global Series---we covered the impact of the Trade War and COVID-19 on US-China relations, our local ports, and on two Tacoma-based firms engaged in trade. It is now streaming on our website.
Trade War Truce?
With all the talk of COVID-19 and the celebration of Phase One, it’s easy to forget that we are still in the midst of the Trade War. Two-thirds of all imports from China are subject to tariffs with an average more than six times that of early 2018. 
While the stated goal is to use tariffs for leverage in bargaining, higher materials and component costs have caused US manufacturers to be less competitive on international markets. They and farmers have also become subject to retaliatory tariffs. See the impact on our state in a study by the Washington Council for International Trade:

What about the Phase One trade deal? There were serious concerns from the beginning about meeting the aggressive targets set for Chinese imports. This was before COVID-19. Now, the bar is higher.
‌
The Challenges of Phase I after COVID-19
Even if the Chinese economy continued at the pre-COVID-19 growth rate, the targets to the right of this imports growth chart shows how difficult it would have been to reach the established targets. Now, as China recovers, its export markets are still down due to the pandemic.
Need to relearn how to coordinate in a crisis
US-China relations have taken a downturn when the world needs them to come together. T he US has led and cooperated with China in past tsunamis, global financial crises, and pandemics. Today, such cooperation is seen as a zero-sum game.
Tit-for-Tat Series of Journalist Expulsions
Actions on media access is a good example of deteriorating relations . Through a series of expulsions in February and March both sides realized the largest purge in since the death of Mao in 1976.
Finger-pointing on blame
Attributing the blame for the virus has become a priority. The Chinese foreign ministry for a time appeared to acknowledge a conspiracy theory about a US military origin. President Trump and Secretary of State Pompeo reacted by using “Chinese virus” and “Wuhan virus” respectively.
Turmoil Surfaces in Trade
A good example of how political turmoil surfaces on a practical level in trade is with the import of personal protective equipment (PPE). Despite a dire shortage of protective masks, Chinese-standard KN95---the near equivalent of the US N95---w ere singled out to be excluded from the FDA's emergency PPE authorizations.
The COVID-19 Lesson:
Diversify Supply Chains
Given that the relationship with our major trading partner is likely to be challenging for the foreseeable future, the advice of Sabine Wyand the European Commission’s director-general for trade seems germane. She suggests that the lesson to be learned from COVID-19 is not that we should reject global trade (i.e. manufacturing ventilators requires over 900 parts from around the world), but that we develop well-diversified supply chains .
Next Step: Wed May 13 4:00PM - FOCUS VIETNAM
With the necessity for supply chain diversification in mind, the World Trade Center Tacoma will hold its second event in its Columbia Bank Going Global Series, a webinar on Wed. May 13, 4:00-5:30. The focus will be on Vietnam as a marketing and sourcing destination. We will look at the prospects for and the actual experiences of local businesspeople who are selling to, buying from, and who have "set up shop" in Vietnam.
Bright Spot in 2020: Cross-border e-commerce
As on-line shopping becomes ubiquitous worldwide, in part due to COVID-19, now is the time to focus on cross-border e-commerce. It is the bright spot that is projected to grow at a rate of 20% in 2020. In recognition of this, w e are also growing our Export Store offerings .
Tacoma Responds to COVID-19 by Connecting Businesses and Residents to Resources
‌
WTC Tacoma Export Store


A quick, easy, and affordable way to become export-ready and put your product or service on the global market.





  • Low-cost exposure to 155 markets
  • Well-recognized World Trade Center branding
  • 12-language accessibility
  • Individual showcase - up to 25 products
  • Advanced search engine optimization
  • Over 1000 Average daily views*
  • Filtered queries - receive only qualified leads
  • Ongoing guidance & support
  • Affordable annual subscriptions for members from $1495 
  • Professional website design and search engine optimization
  • Counseling on international trade

*average for 2019

Sponsored By
WTC Tacoma Trade Desk
The Trade Desk is an affordable, state-of-the-art service desk perfect for:

  • an entrepreneur with a vision who needs help putting it into action,
  • a small business seeking to expand, or
  • an established mid- to large-sized company looking to explore new avenues, gain further efficiencies of scale or searching out new suppliers or customers.

Sponsored By
‌