The long anticipated Korea-U.S. Free Trade Agreement (KORUS-FTA) was implemented on March 15, 2012 becoming our nation’s largest FTA since NAFTA. The agreement has the potential to increase U.S. exports to Korea by approximately USD 10-12 billion, and it will be especially beneficial for U.S. SMEs. In 2009, nearly 18,000 SMEs exported some USD 8.4 billion worth of merchandise to Korea.
Total 2011 U.S.-Korea trade exceeded USD 100 billion for the first time ever. U.S. exports reached an all time high of USD 43.505 billion. U.S. exports increased 12% over 2010 levels.
Korea is the United States’ seventh largest trading partner. The U.S. is the third largest exporter to Korea with a 9 percent market share. Key competitors include China with 16.8 percent, Japan with 15.3 percent, and the EU’s 27 nations with 10%. With the EU having already implemented its FTA with Korea, U.S. firms will now again be in a stronger competitive situation following KORUS implementation. (China’s trade reflects significant re-export activity.)
The United States-Korea Trade Agreement (KORUS Agreement) enters into effect today, reducing tariffs on almost all U.S. industrial exports to South Korea and making it easier for U.S. exporters to successfully compete in the Korean market.
With the implementation of the KORUS Agreement, tariffs will immediately be eliminated on almost 80 percent of U.S. exports to Korea.
DSBS is a free portal sponsored by the Small Business Administration, used for entering and searching small business sources that want to do business with the Federal Government
Purpose: Client Resource, Marketing Businesses
Who should register in DSBS?
- Small businesses that want to do business with the federal government
- Small businesses that meet the SBA size standards
What is required to register?
- Register in CCR and indicate “small business” to generate registration
- Basic business profile, i.e. certifications, set-asides, ownership & capabilities
- Generally self-certifying system
The Minority Business Development Agency (MBDA) did a deep dive into the 2007 Survey of Business Owner data released by the U.S. Census Bureau and found minority-owned firms are more likely to export compared to non-minority-owned businesses. Export activity of minority-owned firms spanned 41 countries, with Mexico, Brazil, and the Dominican Republic dominating the list. Across the oceans, minority-owned firms are also selling their products and services to countries that include Turkey, India, China and the Philippines according to data from the U.S. Export Import bank.
The Obama Administration has set a goal of doubling the nation’s exports in five years and minority-owned firms are playing a crucial role in meeting this goal. Further analysis of the Census Bureau data revealed that minority-owned firms were three times more likely to own firms that generate 100% of their revenue through exports than those of non-minority-owned firms. In addition to being more likely to export, minority-owned firms were twice as likely to have operations abroad when compared to non-minority-owned firms and publicly held firms.
With over 140 million consumers, a growing middle class, and almost unlimited infrastructure needs, Russia remains one of the most promising markets for U.S. exporters. Russia is the world’s 11th largest economy and has the highest per capita GDP ($15,900) of the BRIC countries. It is an upper middle income country, with a highly educated workforce and sophisticated, discerning consumers. Russia’s economy has begun to recover from the economic crisis that started in 2008, with GDP growth at 4.0% for 2010.
This growth was slightly less than anticipated due to drought and wildfires, which disrupted agriculture, commerce and industry. Economists forecast real GDP growth of 4.3% in 2011. Russia was the U.S.’s 37th largest export market and the 17th largest exporter to the U.S. in 2010. U.S. exports to Russia were $5.97 billion, a 12% increase from 2009.
Russian exports to the U.S. were $26.5 billion, up 41% from 2009. Russian sources list the country’s leading trade partners as: Netherlands, China, Germany, Italy, Ukraine and Turkey. U.S. accumulated investment in Russia is approximately $21.3 billion. According to Russian data, the U.S. is Russia’s 10th largest foreign investor.