FedEx Express Co-Hosts U.S. – Latin American Business Promotion Tour At Memphis World Hub
September 27, 2011
FedEx Express is collaborating with the U.S. Department of State, the U.S. Department of Commerce, the Business Council for International Understanding and Export-Import Bank of the United States to promote business and export opportunities in Latin America.
“With U.S. exports to Latin America at approximately $161 billion1, opening additional Latin American markets represents an enormous trading opportunity for job creation in the U.S.,” said Michael L. Ducker, chief operating officer, FedEx Express. According to the Department of Commerce’s International Trade Administration, U.S. exports supported an estimated 9.2 million jobs in 2010 and for every billion dollars of exports, more than 5,000 jobs are supported.
The tour supports the U.S. National Export Initiative (NEI), which has the objective of creating two million U.S. jobs by growing U.S. exports and promoting the benefits of greater trade access. According to the SBA Office of Advocacy, there are approximately, 28 million businesses in the U.S. Of that, small and medium-size business represent 99.7 percent of all employer firms. These employers generated 65 percent of net new private sector jobs over the past 17 years2. “U.S. exports can help small and medium-size businesses drive job creation in American. FedEx is an integral part of helping these entrepreneurs export goods by providing global access and international solutions,” Ducker said.
In 2008 (data available), only 289,000 U.S. businesses were exporting—or about 1 percent of all businesses3. Small and medium size businesses are the backbone of the U.S. economy. “Tremendous opportunity exists for the U.S. Government to help small and medium-size businesses participate more actively and effectively in export markets through advocacy and trade promotion,” said Ducker.
“FedEx is honored to support this important trade event. This unique forum encourages the business community to take full advantage of the many trading opportunities with Latin America. It will also provide our nation’s diplomats with valuable information to help them promote U.S. exports abroad and to grow businesses and jobs here in the U.S.,” Ducker added.
The seven city tour – Washington D.C., Memphis, Los Angeles, San Francisco, Detroit, Houston and Chicago – brings together the U.S. Ambassadors to Peru and Chile, the U.S. Charge d’ Affaires to Brazil and other trade facilitators with local business leaders and entrepreneurs. Together they share their thoughts and recommendations for promoting business engagement with Latin America.
1 Fact Sheet: The U.S. Relationship with Central and South America, White House, March 2011
2 SBA Office of Advocacy Frequently Asked Questions, January 2011
3 The U.S. Census Bureau’s “A Profile of U.S. Importing and Exporting Companies, 2008–2009,” April 2011
· Brazil is currently the United States’ 10th largest goods trading partner with $59 billion in total (two ways) goods trade during 2010. Goods exports totaled $35 billion; Goods imports totaled $24 billion. (Source: USTR)
· Brazil was the United States’ 8th largest goods export market in 2010. (Source: USTR)
· U.S. goods exports to Brazil in 2010 were $35.4 billion, up 35.5% ($9.3 billion) from 2009, and up 336% from 1994 (the year prior to Uruguay Round). U.S. exports to Brazil accounted for 2.8% of overall U.S. exports in 2010. (Source: USTR)
· The top U.S. export categories (2-digit HS) in 2010 were: Machinery ($7.2 billion), Aircraft ($4.4 billion), Electrical Machinery ($4.3 billion), Mineral Fuel ($4.2 billion), and Organic Chemicals ($2.0 billion). (Source: USTR)
· So far this year, U.S. goods exports to Brazil are up 21% relative to Jan-July 2011. This moves Brazil up from 8th place in 2010 to 7th place in 2011 for largest goods export market. (Source: U.S. Bureau of Census, January through July is the latest data for 2011)
· Chile is currently the United States’ 31st largest goods trading partner with $17.9 billion in total (two ways) goods trade during 2010. Goods imported from Chile totaled $7.0 billion. (Source: USTR)
· Chile was the United States’ 24th largest goods export market in 2010. (Source: USTR)
· U.S. goods exports to Chile in 2010 were $10.9 billion, up 16.3% ($1.5 billion) from 2009, and up 292% from 1994 (the year prior to Uruguay Round). U.S. exports to Chile are up 300% from 2003 (Pre-FTA). U.S. exports to Chile account for 0.9% overall U.S. exports in 2010. (Source: USTR)
· The top U.S. export categories (2-digit HS) in 2010 were: Machinery ($2.4 billion), Mineral Fuel (oil) ($2.3 billion), Vehicles ($1.2 billion), Electrical Machinery ($878 million), and Plastic ($473 million). (Source: USTR)
· U.S. goods exports to Chile are up 42% YOY over the first seven months of 2011, as Chile’s recovery from the massive earthquake of last year increases demand for U.S. goods. For the year-to-date Chile stands as the 18th largest market for U.S. goods exports. (Source: U.S. Bureau of Census, January through July is the latest data for 2011; commentary added by FedEx Corporate Economics)
· Peru is currently the United States’ 42nd largest goods trading partner with $11.8 billion in total (two way) goods trade during 2010. Goods imported from Peru totaled $5.1 billion. The U.S. goods trade surplus with Peru was $1.7 billion in 2010. (Source: USTR)
· Peru was the United States’ 34th largest goods export market in 2010. (Source: USTR)
· U.S. goods exports to Peru in 2010 were $6.7 billion, up 37.2% ($1.8 billion) from 2009, and up 380% from 1994 (the year prior to Uruguay Round). U.S. exports to Peru are up 9% from 2008 (Pre-FTA). (Source: USTR)
· The top U.S. export categories (2-digit HS) in 2010 were: Machinery ($1.6 billion), Mineral Fuel (oil) ($981 million), Electrical Machinery ($588 million), Plastic ($542 million), and Vehicles ($381 million). (Source: USTR)
· U.S. exports to Peru have grown 28% YOY so far in 2011 (Jan-July), moving Peru up to 31st place in the list of top U.S. goods export markets. (Source: U.S. Bureau of Census)
· The United States and Peru signed the United States-Peru Trade Promotion Agreement (PTPA) on April 12, 2006. The Peruvian Congress ratified the Agreement in June 2006 and a Protocol of Amendment in June 2007. On December 14, 2007, the U.S.-Peru Trade Promotion Agreement Implementation Act became law, and the PTPA entered into force on February 1, 2009.
· The PTPA is a comprehensive free trade agreement. The PTPA will result in significant liberalization of trade in goods and services between the United States and Peru. Under the PTPA, Peru immediately eliminated most of its tariffs on U.S. exports, with all remaining tariffs phased out over defined time periods.
· The PTPA removes barriers to U.S. services, provides a secure, predictable legal framework for investors, and strengthens protection for intellectual property, workers, and the environment. The PTPA is the first agreement in force that incorporates groundbreaking provisions concerning the protection of the environment and labor rights that were included as part of the Bipartisan Agreement on Trade Policy developed by Congressional leaders on May 10, 2007.
· Latin American markets are critical to our Access initiative, as evidenced by their free trade agreements, growing importance to U.S. businesses, and expanding economies.
· The free trade agreements with Peru and Chile essentially eliminated most of their tariffs on U.S. exports, which allows for our U.S. businesses to position their products competitively in the market.
· Many U.S. businesses, like FedEx, continue to make significant investments in Brazil, Chile and Peru given the importance this economy plays in the future.
· FedEx is sponsoring this event to help promote these markets to our customers, as well as our capabilities for getting their goods to the market in a timely and cost-effective manner.