U.S. Firms with Supply Chain components or Exporting to China, now run the risk of being ensnared in the Russia Sanctions
David F. Day, Co-Chair, NADEC Trade Policy Committee
Chairman, Global Risk Mitigation Foundation
As more Chinese firms are hit with violations of the U.S. sanctions imposed on Russia, many unsuspecting U.S. and other Western firms face the risk of being caught as well.
Overview of the Russia Sanctions Regime
Once the Russian attacks upon Ukraine commenced this past February, the United States, the EU, and a large number of other countries began applying sanctions with the aim of crippling the Russian economy. These sanctions were wide-ranging, targeting individuals, banks, businesses, monetary exchanges, bank transfers, exports, and imports.
If you recall, those sanctions also included cutting off major Russian banks from SWIFT, the global messaging network for international payments, although, at that time, there would still be limited accessibility to ensure the continued ability to pay for oil and gas shipments. As the Ukraine war progressed, the sanctions were ratcheted up to include asset freezes on the Russian Central Bank which holds some $630 billion in foreign exchange reserves to prevent it from offsetting the impact of sanctions. By March 1st of this past year, the total amount of Russian assets being frozen by sanctions amounted to $1 trillion.
Turning to the private sector, major multinational companies including Apple, IKEA, ExxonMobile, and General Motors, among others, have independently elected to apply their own sanctions on Russia, acting as international law enforcers on behalf of the sovereign governments. A number of other multinational companies followed suit and have disengaged from Russia to comply with sanctions and trade restrictions imposed by their home governments. Even if the respective sovereign governments did not explicitly require full “disengagement,” this was undertaken in many instances to avoid the economic and reputation risk associated with maintaining commercial ties with Russia.
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East Michigan District Export Council Members Find Meaningful Client Engagement Through ExporTech™
The East Michigan DEC (EMDEC) is comprised of 27 members from a range of industry sectors. EMDEC members provide regular support to local companies through joint client counseling with U.S. Commercial Service (CS) staff and through active engagement in export promotion events and educational programs in the local community. EMDEC has a long history of effectively planning and supporting events and seminars to educate U.S. businesses about the export process, including the 2010 National DEC Conference in Detroit, which attracted 350 attendees and featured a keynote by Pixar Co-Founder, Ed Catmull.
EMDEC members continue to find meaningful client engagement through their involvement in the ExporTech™ program. Jointly offered by the NIST Manufacturing Extension Partnership and the U.S. Commercial Service of the U.S. Department of Commerce, ExporTech™ is a national export assistance program helping companies enter or expand in global markets. It is the only national program where each company develops a written export plan, which is vetted by a panel of experts upon completion.
CS Michigan is a national leader in federal-state collaboration with ExporTech™, which together with the Michigan Economic Development Corporation (MEDC), they expanded to four programs per year (pre-pandemic) to cover Michigan’s geography, including the Upper Peninsula (UP). East Michigan DEC members volunteer their time to serve as speakers during the program’s educational sessions and as experts on the final panel during which they provide feedback to participants as they present their draft strategic plans for export growth.
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EMDEC members have participated in both in-person and virtual ExporTech™ programs, with some driving 8 hours one-way and giving 3 days of their valuable time to contribute to a program in Michigan’s UP targeting rural companies.
Most recently, members shared their knowledge by serving as speakers and members of the expert panels for a Pilot National ExporTech™ Program CS East Michigan and the Commercial Service’s Global Diversity Export Initiative (GDEI) Team organized in collaboration with the National Business League to target the needs of Black-owned businesses. Participating companies represented diverse industries, including automotive, material sciences, manufacturing, IT, financial services, health insurance services, and media & entertainment.
EMDEC members’ commitment to ExporTech is unwavering, and their continued engagement helps to create strong client relationships and a pipeline of companies that are well prepared to build export sales abroad and economic prosperity at home.
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Want to get more involved in this chapter? Have ideas to share?
Contact:
W.E. Da'Cruz, At-Large DEC Representative, Member of the NADEC Board and the Education & Outreach Committee, wedacruz@thevgcgroup.com
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Please share your local DEC events with the NADEC Network!
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Automated Commercial Environment (ACE) Exports Compliance Webinar
October 5, 12 p.m. October 6, 4:15 p.m. EST
This export compliance webinar is a two-day program bringing together experts from the Census Bureau, Bureau of Industry and Security, and the South Florida District Export Council to provide training on export filing requirements.
All of those who are involved in the export process should plan to attend this invaluable event:
• U.S. Principal Parties in Interest (USPPI), including Manufacturers and Suppliers
• Export Compliance Managers
• Freight Forwarders
• Exporting Carriers
• Consolidators
• U.S. Customs Brokers
• Compliance Software Providers
Email: officemiami@trade.gov
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Trade Mission to Guyana
November 14 - 18, 2022
This 3 day / 4 night trade mission to Georgetown, Guyana will be packed with business briefings, site visits, networking and more.
This trade mission to Georgetown, Guyana is sponsored by the Louisiana District Export Council. U.S. companies and organizations are invited to join the business development delegation, which will be arranged with the U.S. Commercial Service New Orleans, and hosted in partnership by the U.S. Embassy Guyana and AmCham Guyana. Participants will enjoy gaining the latest business intelligence, site visits, market entry guidance and networking with Guyana government officials, companies, and key economic organizations with the aim of developing the knowledge, connections and partnerships needed to succeed in this dynamic market.
Meet: U.S. Embassy officials, foreign buyers, local facilitators, ministry officials, and public private stakeholders.
Learn: About new and developing opportunities in this market for energy, infrastructure, renewables, healthcare, and agribusiness.
Grow: Chart your course to success through market briefings, introductions to key stakeholders, networking opportunities, and site visits.
This event is open to any U.S. company, non-profit or government agency interested in fostering greater partnerships in Guyana.
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Could not join us for the Spring Conference in DC?
More than 25 respected experts led interactive workshops, panel discussions, and individual presentations, providing in-depth analysis of an array of issues and challenges facing NADEC members today.
NADEC highly recommends viewing the videos from the conference HERE.
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From the U.S. Department of Commerce |
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Building Bridges to Global Markets Event Series
July 27 – August 25, 2022
The U.S. Commercial Service’s Building Bridges to Global Markets brings no-cost, in-person exporting expertise to your community. Addressing issues most common to diverse businesses seeking international sales expansion, this series of events will introduce reliable contacts, accurate information, and ready-to-use resources that will place you firmly on the road to exporting success. There are 5 confirmed events beginning July 27 and ending August 25 – Wilkes-Barre, PA; Baltimore, MD; Jackson, MS; Houston, TX; Cleveland, OH. T
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Note DEC Members!
DEC members interested in attending the DGM Forum may register at the discounted DEC member rate of $545. In addition to program aspects available to all attendees, DEC members will be invited to participate in a regional DEC meeting on September 20th, where they will have the opportunity to network with DEC members from across the country. All DEC members will also be identified with a ribbon attached to their name badge.
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Women in Tech Trade Mission to Europe
Women in Tech Trade Mission to The Netherlands, Portugal and France
October 30 – November 5, 2022
This trade mission will include stops in Amsterdam, Lisbon and Paris. U.S. firms and trade associations can connect with pre-screened business prospects in each of these European Tech hubs.
There will also be networking opportunities with local government officials, industry leaders, plus U.S. companies already doing business in the region.
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US Economic Outlook
EIU, June 2022
Is the US economy headed for a recession?
Despite being one of the first to recover from the effects of the covid-19 pandemic, the US economy is rapidly losing momentum. Our latest report explores three major risks to the country’s economic outlook and poses the question: is the US on the brink of recession?
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Statement by Commissioner Bentzel on East Coast
empty container congestion
AJOT, August 09, 2022 | Ports & Terminals
"I want to agree and associate myself with the statement made by Chairman Maffei in the aftermath of his visit to the Port Authority of New York/New Jersey, and his concerns on the mounting challenge of returning empty containers to the marine terminals servicing the port. In my view, the congestion emanates from the lack of accountability in moving the buildup of empty containers back into the terminals. Empty containers, and perhaps even export containers, are being rejected for return or delivery, because of the surging levels of imports that need to be handled. The industry needs to come together to plan how to better respond to the current challenges of returning empties to the Port."
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Signing the CHIPS and Science Act was just the start for enhancing
U.S. economic strength and national security.
Nextgov, Kristen Errick, August 10, 2022
On Tuesday morning President Joe Biden signed a $280 billion bipartisan bill to strengthen domestic manufacturing of semiconductors in an effort to not rely as heavily on overseas production of these important tech components.
The bill—officially known as the CHIPS and Science Act—became law yesterday. It will provide $52 billion to subsidize U.S. semiconductor manufacturing and billions in additional funding for emerging technology research and development.
“Today is a day for builders,” President Biden said at the Rose Garden ceremony. “Today, I’m signing the CHIPS and Science Act - a once in a generation investment in America itself.”
Proponents of the legislation have been pushing to get it passed, citing economic and national security reasons. The United States had a 37% market share of semiconductor production in 1990, and today it is about 12%, representing the high-end semiconductors produced in the U.S. Asian countries subsidized their semiconductor industry, which helped to exponentially grow their semiconductor production market share.
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Signing of Memorandum of Understanding Between the United Kingdom and
The State of North Carolina
July 20, 2022
In response to the announcement that the British government and the State of North Carolina have signed a Memorandum of Understanding (MoU) on trade and investment, British American Business network (BAB), CEO Duncan Edwards said:
“On behalf of our network of chapters and members across the UK and USA, BritishAmerican Business is pleased to see the signing of a Memorandum of Understanding on trade and investment between the United Kingdom and the state of North Carolina.
The UK and USA have an outstanding trade and investment relationship but there is always more that can be done to make it better. Agreements such as this are helpful in creating ways for businesses from both markets to fully understand the opportunities available to them as they plan their expansion across the Atlantic.”
Read the British government’s announcement here.
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Let's Increase DEC Member Engagement!
The NADEC National Committee has prepared a:
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All Board Members have special expertise in international trade and are dedicated to helping businesses across the nation develop global sales. Contact them if you have any questions or if they can be of any help.
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Grow your brand and increase sales - all online!
Have you been wanting to grow your exports in foreign markets but are not sure where to start or how to enhance your presence? Hear what a client of ours has to say about best-practice, localized websites and how they helped grow their exports abroad.
Fullerton Tool Company needed to jumpstart engagement and exports in their target market: Mexico. Given the success of the partnership with IBT Online in designing and launching their localized websites in international markets including Mexico and Canada, Fullerton Tool Company decided to continue this partnership and sign up for the International Online Global Marketing Programs.
The results have been outstanding. Now, prospects in Canada, Mexico, and the U.S. can go online and order exactly what they want and enjoy a bespoke buyer experience, and, in turn, Fullerton Tool Company enjoys a diversified sales pipeline from their domestic as well as foreign markets. “We went from a handful of sessions on our new websites per month to 9,000 monthly sessions” says Beth Bauer, the Digital Operations Manager for the company.
Watch this video of Beth Bauer, from Fullerton Tool Company, discussing localized websites and ongoing international marketing campaigns, all delivered by IBT Online. As Bauer states: “It’s nice to see that we are increasing traffic to the site from ads and converting to actual sales! I consider IBT Online a trusted partner in helping us meet our exporting goals. Never have I felt that I have a partner with my brand’s best interest in mind than with IBT Online."
Contact: John Koons, OnLine Marketing Manager, jk@ibt.onl
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Export resources to help you succeed globally
Country Commercial Guides * Export Webinars * Exporter's Resources Data Base
This publication has very useful trade information, all in one convenient place: articles, data, and links to help you develop international business.
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Export‐U delivers the training you need to make profitable export sales. Our webinars show you how to find the best export markets for your goods and how to sell into them. And now, our all new Exporter’s Resource Database offers a wealth of trade information to help you succeed at exporting. |
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This is a free training website operated by the Georgia District Export Council and the U.S. Export Assistance Center in Atlanta.
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