ISSUE 1/2001

Perhaps no question is asked more frequently by exporters than "Where and how can I find importers?" Helping businesses to ferret out the response can be a real challenge. A firm grasp of specialized sources is necessary, but it is not enough: an inquisitive mind and a healthy dose of perseverance are essential to track down leads to the right importers for your business.

How can African, Caribbean and Pacific (ACP) countries benefit most from the new world trading system? This was the themeof a keynote address delivered by ITC's Executive Director, J. Denis Bélisle, at the Meeting of the ACP Ministers Responsible for Trade (Brussels, December 2000).

While Africa faces tremendous challenges on the road to integration into the world trading system, there is more to Africa's trade performance than meets the eye. Many African export sectors have outperformed world market growth. Champions in the African export portfolio include cut flowers, frozen fish, t-shirts, women's trousers, footwear and transistors. These cases illustrate that Africa can compete.

Emmanuel Barreto was part of a team of ITC consultants which developed a site for the Fourth Afro-Arab Trade Fair (Dakar, Senegal, 15-25 April 1999). Below he reports on what visitors were looking for at the Internet café.

Earlier this year we launched a new Forum magazine web site to better serve you, our readers. You have several advantages when you view the magazine on the web site. It is faster and easier for you to receive news and trends and to search for specific information. The site provides new opportunities to express your views. And it also gives you the possibility to increase the visibility of your own trade-related publications.

Consider back office operations in your national export development strategy. Developing countries can harness the current trend of outsourcing business operations to address key challenges in managing their economic development.This article is the second of two about the growing opportunities for developing and transition economies to provide back office services to international firms, public-sector agencies and non-profit organizations (see also Forum, issue 3-2000).

From the Trade Secrets generic version, below are web sites of selected international and regional organizations that promote trade.

The Gujarat Cooperative Milk Marketing Federation Ltd (AMUL) links 10,000 village societies in India, a total of 2.1 million milk-producing families. Its business involves daily collection of milk at 25 supply centres in Gujarat; the production of butter, cheese, ice cream, baby food and milk powder; the marketing of these products through 50 sales offices throughout India; and distribution through a network of 4,000 stockists who, in turn, supply 500,000 retail outlets.

ITC joined with the Slovenian Ministry of Economic Relations and Development and WTO to hold a regional business round table on International Market Prospects for Information Technology Industries (Portorose, November 2000).

Few industries drive the pace of social and economic change as fast as information technology. World Trade Organization Agreements on Information Technology and Basic Telecommunications Services, conducted in the 1990s, aim to liberalize these areas in order to spur economic growth in the twenty-first century. ITC surveyed over 600 business and government leaders in developed and developing countries for their reactions to these Agreements. Market opportunities and challenges for developing countries are highlighted in this article, adapted from the ITC publication, Trade in Information Technology Products and the WTO Agreements.

Q. What do buyers look for when determining the purchase of a product?It is important to remember the three "Ps" that influence the buying decision: Product, Price and Performance. Normally, customers have in mind a combination of the three while making any buying decision.

In Brief © International Trade Centre, International Trade Forum - Issue 1/2001 From left to right: S. Piskolti, ITC; Mr. A. Khalifa, UN Resident Coordinator, United Arab Emirates; J. Denis Bélisle, Executive Director, ITC; H.E. Sheik Sultan Fahem Al-Qasimi, Minister of Economy and Trade, United Arab

Today's business executives are finding it more and more difficult to negotiate "static" agreements that withstand the pressure of change. As a result, renegotiations are a growing trend in international business. Here are tips for keeping renegotiations to a minimum, and managing them successfully.

ITC will organize a Business Sector Round Table for theThird United Nations Conference on the Least Developed Countries (Brussels, May 2001). The meeting provides a forum for creative dialogue to some 75 participants comprising entrepreneurs and senior policy-makers from least developed countries (LDCs), buyers of LDC products from developed countries and LDCs' bilateral and multilateral development partners involved in trade development.

The single most common reason for export failure is inattention to cultural factors, a maxim frequently repeated in international business literature. People choose service providers and strategic business partners with whom they feel at ease, and this comfort level is dictated initially by cultural factors. In over half the process innovations reported to ITC by services firms from developing and transition economies, cultural adaptation was cited as 'important'.National cultures are numerous, and subcultures are even more so. Increased travel has resulted in a large group of people socialized in more than one culture, and widespread television access gives exposure to different cultural values.To be sensitive to these factors, it is useful to have a structure for understanding cultural differences. Below are ten variables which affect cultures and subcultures, and can serve as a framework for reflection.

Books • Export Development in the Digital Economy (2000) • Secrets of Electronic Commerce (2000) • Offshore Back Office Operations (2000) • The SME and Information Technology (2000) • Innovating for Success in the Export of Services (1999) • Business Guide to General Agreement on Trade in Services (1999) • Trade in Information Technology Products and the WTO Agreements (1999)

Ghana's e-challenge Ghana's national strategy is to promote export development aggressively, primarily in non-traditional export sectors. The Ghana Export Promotion Council (GEPC) coordinates the implementation of this strategy. One of Council's strategic objectives is that all registered Ghanaian exporters should become e-competent by 2003.

The Electronic System of Exports (SIEX) in El Salvador enables exporters to obtain electronically via the Internet all the required export documents from the Export Procedures Centre (CENTREX), at any hour, day or night. Through SIEX, the exporter sends information on transactions and obtains the corresponding authorization directly at the place of business.

Environment and trade is a challenging issue that the World Trade Organization (WTO) has to tackle. The scarcity of statistically well-grounded information makes the task even more complex. Using market analysis tools developed by ITC with data derived from the United Nations COMTRADE database and UNCTAD's database on trade barriers, a pioneering study to be published later this year tries to put some figures into the debate.

Services exporting, software development and hardware represent three major market opportunities for firms in developing and transition economies. Traditional exporters can also harness new technologies to cut costs and reposition themselves in the international marketplace. But are the firms most likely to benefit ready to take the plunge?

Make sure your contracts include the minimum requirements for a successful transaction.

Groundnuts, a staple food for many developing countries, deserves a closer look as an export commodity. Less than 6% of the world groundnut crop is traded internationally, with export sales averaging close to US$ 1 billion dollars per year. There is, therefore, scope for export growth in groundnuts.Investing in groundnuts is a sustainable way to address the rising needs for both food and foreign exchange. Today's exporters face two major challenges: ensuring food safety by preventing and controlling mycotoxin contamination of products and adapting groundnut supplies to demand for varieties best suited to specific end-uses.ITC is focusing its technical assistance activities in the groundnut sector on helping African producers and exporters meet these challenges. Micaela Maftei, an ITC Senior Commodity Officer, reports.

© International Trade Centre, International Trade Forum - Issue 1/2001 More than 60 companies from six member countries of the Economic Cooperation Organization (ECO), attended the first ECO Buyers-Sellers Meeting on Textiles and Clothing (Istanbul, October 2001). The representatives from Azerbaijan, the Islam

© International Trade Centre, International Trade Forum - Issue 1/2001 The China Council for the Promotion of International Trade (CCPIT) will host the fourth World Conference of Trade Promotion Organizations (TPOs) in Beijing, China from 15 to 17 May 2002. This will be the first time that the World Conference

Over the past four years, ITC's World Tr@de Net programme (previously the Uruguay Round Follow-up programme) has delivered nearly 200 seminars in 70 developing and transition economies to brief business and government leaders about the world trading system. Below is a sample of questions posed most frequently by seminar participants.The questions reflect real concerns of seminar participants and, as such, represent perspectives of the business community in developing countries. For answers to your frequently asked questions, see the World Tr@de Net web site http://www.intracen.org/worldtradenet

Our Annual Report starts by saying that 1998 was "a year during which ITC progressed from building up organizational strengths to transferring these strengths to its operational programmes, one during which its focus moved from administrative reform and basic retooling to its main mission: the effective delivery of its field programmes". To elaborate on these points, I will first take stock of our assets today. I will then suggest how ITC can enhance its operational activities at country level.

One of the most promising areas in trade for developing countries is services, with new negotiations underway from March 2000. This article, based on the ITC publication, Business Guide to the General Agreement on Trade in Services, provides an overview of this emerging, fast-growing area. International trade rules in this area are still relatively new, and the opportunity to shape them exists. The article also highlights niche areas for developing and transition economies.

ITC organized three training events in the last quarter of 2000. Each event emphasized hands-on practical experience for participants, in particular for retrieving specific business information from the web and drafting programmes for the development of trade information services.

First of all, let me say that Forum magazine is our no. 1 source of information. All the clients of our trade information centre take advantage of your information. We also summarize articles and refer to its content in our monthly bulletin. Congratulations.

E-commerce Groundwork in Saudi Arabia ITC organized a seminar on export development and e-commerce at the University of King Saudia in Riyadh in October 1999, its first on the subject in Saudi Arabia. ITC highlighted the need for marketing strategies to take full advantage of new communication technologies. ITC staff followed up by working with government officials to develop an e-commerce export development project.

This issue features concepts from the new ITC publication, Innovating for Success in the Export of Services, by Dorothy Riddle.

In recent decades, industrialized countries have developed a number of direct instruments to help their national companies become active in the developing world.

In Brief © International Trade Centre, International Trade Forum - Issue 1/2001 ITC's Executive Director, J. Denis Bélisle and H.E. Mr. José Miguel Insulza, Minister of Foreign Relations, Chile, were among the speakers at the World Economic Forum China Business Summit (Beijing and Shanghai, April 199

CD-ROMs, bulletins and product marketing brochures are featured on these pages, along with a major new joint publication. The aim is to inform readers about the range of innovative and practical ITC information products that are available. These products complement ITC's trade promotion handbooks, market surveys, directories, bibliographies and other technical materials listed regularly in Forum.

ITC produces a variety of international trade bulletins which complement ITC's books and technical papers. To subscribe, contact the relevant sections of ITC listed below.

The conclusions drawn from the Executive Forum helped ITC to crystallize its thinking on how to assist its clients to understand, develop and apply the new information and communication technologies and associated business practices to international trade. The following are key elements from ITC's strategy.

Fibres and Textiles Industry at the Turn of the Century: Some Observations. 44 pages (Technical Paper). Background paper covering issues with significant impact on future development in international trade in textiles and clothing, focuses on WTO Agreement on Textiles and Clothing (coming to an end in 2004), and its consequences for the sector; examines anti-competitive practices, as well as individual regional and government policies; reviews supply and demand trends and prospects; environmental issues and their impact on sector.

© International Trade Centre, International Trade Forum - Issue 1/2001 ITC's Trade Information Section organized a trade promotion and information seminar for ten Brazilian trade representatives (Geneva, 31 May-11 June 1999). Retrieving relevant business information was the focus, with ITC providing an overvie

In January ITC organized its first e-trade bridge meeting in Hanoi and Ho Chi Minh City in Viet Nam. The meeting aimed to identify national action priorities to improve the ability of Vietnamese small and medium-sized enterprises (SMEs) to compete in world markets. ITC's Executive Director, J. Denis Bélisle, welcomed the participants and outlined ITC's e-trade assistance for SMEs:

Highlights from ITC's recent activities in quality management, featured below, provide a glimpse into ITC's trade support services to businesses and government bodies for export-related quality management issues.

Reflecting the rapid evolution of the Internet, ITC has developed new sites with partner institutions in the past year, and expanded parts of its main site. This helps exporters, importers and trade support institutions in several ways.

ITC's Market Briefs are short market analyses, available in print and on ITC's web site, which review export potential for products and markets of interest to developing countries. Below is a summary of a recent ITC Market Brief on Fruit and Vegetable Juices in the United Kingdom.

© International Trade Centre, International Trade Forum - Issue 1/2001 Electronic commerce was high on the agenda at the recent International Islamic Forum for Science, Technology and Human Resources Development, which hosted an inaugural Workshop on Science and Technology Databanks (Jakarta, Indonesia, 6-7 Ma

-- Arbitration and alternative dispute resolution: How to settle international business disputes. 266 pages. Handbook focusing on available methods for preventing and resolving commercial disputes - deals with different types of disputes encountered in international trade and describes methods for preventing or resolving them; outlines fundamental principles applicable to international commercial arbitration; explains how to draft an arbitration clause and provides selected model clauses; appendices contain text of major international arbitration conventions and rules, as well as list of arbitration institutions worldwide.

-- Major Markets for Cotton T-shirts. 115 pages (Technical Paper). Market survey on cotton T-shirts in the European Union (with particular reference to Germany, the Netherlands and Sweden), United States and Japan - discusses international textile trade in general terms and in relation to WTO Agreement on Textiles and Clothing; presents major markets and their characteristics; outlines documentary and shipping requirements, relevant legislation, contact specifications, quality control methods and environmental issues; contains statistical data.

Q. What problems usually arise with a letter of credit process?

Participation in international craft trade fairs is an efficient way for craft producers to showcase their products to export markets. The advantages include audience concentration, face-to-face communication, the opportunity to assess the competition and the chance to become acquainted with new business partners.

The world's food system is changing fast under the influence of population growth, the globalization and concentration of world economies and scientific advances. These changes also affect those involved in trading groundnuts.

ITC, in cooperation with Switzerland's State Secretariat for Economic Affairs (seco), hosted its second Executive Forum on National Export Strategies in Montreux in September 2000. Over 20 national teams participated in the debate, which concentrated on the theme, Export Development in the Digital Economy. Each team was asked to analyse the implications of e-trade for international competitiveness and to determine what, in its opinion, would be the most suitable national response.

In Brief © International Trade Centre, International Trade Forum - Issue 1/2001 ITC has launched a new programme in early 1999 to promote regional exports to southern Africa, with financing from the Government of Switzerland. The programme was developed at the specific request of the trade promotion and busin

© International Trade Centre, International Trade Forum - Issue 1/2001 Mr. Gian Piero Roz, an Italian national, has joined ITC as Director, Division of Administration. His previous post was as Director, Information Services Technology Division, Department of Management at the United Nations (UN) headquarters i

© International Trade Centre, International Trade Forum - Issue 1/2001 The Omani Centre for Investment, Promotion and Export Development (OCIPED) launched the Oman TradeMap and Trade Secrets: The Export Answer Book (Oman, October 2001). Some 130 people, including leading industrialists and national strategy-ma

Indian financial journalist finds Forum useful I am a journalist working for the Hindu Group's financial daily, Business Line. I have been receiving Forum for almost a decade and it has been quite useful in my professional work.

© International Trade Centre, International Trade Forum - Issue 1/2001 Mr. J. Smadja, Deputy Executive Director of ITC, congratulates the Philippines Department of Trade and Industry on its national version of Trade Secrets. Launches in Kenya, the Philippines, Turkey and Zimbabwe National vers

"Developing countries need to build a 'quality culture' and to have better information on quality requirements. Individual organizations need to come forward and [provide] for cheaper costs of certification, as my organization is offering for organic products."

© International Trade Centre, International Trade Forum - Issue 1/2001 Here are two of the many letters we received following the first Forum article on back office operations. (The first article appeared in issue 3-2000, and a follow-up article appears in this issue.) "I have just seen the Forum mentioning t

© International Trade Centre, International Trade Forum - Issue 1/2001 "I would like to congratulate you on your article, Silk: Tradition with a future? (issue 1-1999). It is really good: analytical, brief and crisp in presen-tation. "I would like to avail myself of this opportunity to raise some of my conce

ITC has worked with the Romanian Government on a wide range of projects to deliver practical services to Romania's business community. "This is a landmark year, and we would like to thank ITC for its focused, highly professional approach in helping Romania's trade community," said Mr. Ovidei Cernei, Director General of Romania's Department for Foreign Trade and Economic Promotion, in a joint press release before the event.

© International Trade Centre, International Trade Forum - Issue 1/2001 Within the past two months, visitors to the (Services Exporting Home Page) have increased rapidly, climbing to over 9,000 hits per week. This web site - targeted to services exporting firms, associations that support them and government ag

The overall environmental software market was estimated at about US$ 1.8 billion in 1995, of which US$ 1.14 billion for consulting and services. So what IT tools does a consulting engineer in a developing country need to compete in the market for environmental engineering services? This article provides a quick checklist.

Three lessons from LDC success stories "Behind the obvious, somewhat old story - namely the loss of LDC market share in world trade resulting from the price collapse of raw commodities - there is a new, more hopeful and more exciting grass-roots story. This is the story of a new generation of LDC entrepreneurs and investors who are finding ways to leverage the opportunities created by global trade liberalization to start rebuilding their countries' export base.

As more and more small and medium-sized firms expand internationally, the abstract concept of a world trading system suddenly takes on a new meaning. Governments, industry associations and firms are all faced with similar questions from different perspectives. How can standards be set so that our industries remain competitive? Can tariffs be lowered abroad for products of interest to our industry?ITC has information that can point businesses, industry associations and governments in the right direction. One key source is the Business Guide to the World Trading System, published in late 1999 by ITC and the Commonwealth Secretariat. This article, adapted from excerpts of the Business Guide, analyses why the WTO Agreements attract increasing interest and outlines the benefits for business.

© International Trade Centre, International Trade Forum - Issue 1/2001 His Excellency Maître Abdoulaye Wade, President of the Republic of Senegal welcomed J. Denis Bélisle, ITC's Executive Director, in the presence of Mrs. Aicha Agne Pouye, Minister for Trade and SMEs, prior to the opening of the Symp

Rapid globalization, new forms of business alliances and communications developments are reshaping the international trade landscape, and bring new business opportunities between developed and developing country firms.J. Denis Bélisle, ITC's Executive Director, and Michael R. Czinkota of Georgetown University's McDonough School of Business outline why we should respond to these trends, and indicate some of the steps ITC is taking to help developing countries benefit from the unprecedented new volume of international trade.

ITC is working with 30 institutions worldwide to create a series of national guides called Trade Secrets. The guides provide answers to the most common exporting questions. This section takes a "Close Up" look at the Trade Secrets process - questions exporters ask, sample responses, which national guides are in development, and how partner institutions are using them.

© International Trade Centre, International Trade Forum - Issue 1/2001 In the United Republic of Tanzania, ITC conducted two training workshops in May and June to train participants to become purchasing and management training specialists, focusing on how to use case studies. First steps were taken towards dev

Quality is a major factor in any purchasing decision. Understanding how markets define quality and learning about relevant regulations is a "must" for exporters.

ITC's Services Exporting Homepage has features designed specifically for industry associations, to support their efforts. Below are ways associations can use this site to attract new members and retain current members in an increasingly competitive market.

Juan Fernandez Gonzalez of Cuba's National Commission for Electronic Commerce highlighted Cuba's experiences with its portal site and its new e-commerce commission, in response to questions from the moderator.

Foster a national networkThe book is a valuable trade promotion tool. Equally important, the process of customizing Trade Secrets nationally is turning out to be an excellent exercise in institutional networking.Ricardo Leal and Cassia Morais, Brazilian Trade Promotion Department and Export Promotion Agency---

What are business executives in developing countries and trade development officials saying about e-trade? Below is a "sampler" - a taste of the individual views expressed during the Executive Forum process. For more views, see the Executive Forum web site, which contains e-discussions, e-briefs, interviews and an online version of the book emanating from the Executive Forum 2000.

ITC's first Virtual Conference was launched as an innovative way to continue the dialogue with the many partners involved in ITC's recently-completed "Uruguay Round follow-up" programme. (It provided information on business implications of WTO agreements through more than 150 seminars and several publications, including the Business Guide to the Uruguay Round.)