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Workshop on Trade Representation

Workshop on Trade Representation. Trade Related Technical Assistance for SRE. Peter Bennett Trade Development Consultant. Structure of workshop What this workshop is about. Managing a TPO Export promotion and FDI Strategic and policy issues

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Workshop on Trade Representation

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  1. Workshop on Trade Representation Trade Related Technical Assistance for SRE Peter Bennett Trade Development Consultant

  2. Structure of workshopWhat this workshop is about • Managing a TPO Export promotion and FDI • Strategic and policy issues • Senior decision makers – influence strategy / policy • Contributors • Exporters • Government Policy Makers • Associations • ITC’s Manual for Trade Reps • Actual work of a trade rep • Question; challenge; disagree; debate • Flexible Introduction

  3. Terminology • TPO = service • SRE -Secretaría de Relaciones Exteriores • Proméxico • Others • Trade / commercial diplomacy • Bi-lateral trade issues • Trade Promotion Introduction

  4. Characteristics - 1 • Don’t sell anything and don’t manufacture • Exception is consultancy services – special case. • Don’t generate exports • Career job • Difficult to dip-in and dip-out • Inexperience quickly detected by industry • A knowledge driven industry • Knowledge, information, practice • Problem with a knowledge industry • Strong central structure – work against it • Rigid hierarchy – work against it • Best people work with clients Introduction

  5. Characteristics - 2 • TPO / TSI can have a big impact • Why does every country try to develop one? • Big changes caused by • Access to info • Speed • Competition • Globalisation • Very expensive service to provide • TPOs complex to manage Introduction

  6. A TPO - The variables • Money, personnel, physical assets, clients and markets • Simple • Provider of information • No analysis, No intellectual input, No risk and low impact • Default – tend to revert to this position • Complex • Intellectual input • Analysis, judgement, opinion • Sector / client specific / focus on winners • High risk and high impact • Holistic approach • Complex Infrastructural issue • Provide advice on all aspects effecting successful exporting Introduction

  7. Settings of variables • You make the decision • Combination will be unique • In process – difficult decisions • Services • Client selection • Personnel • Management / support structure • Agreement way different parts relate to each other Introduction

  8. Things go wrong • TPOs spends $m – over x years • Results • Impact • Return on investment • ITC Consultancy • Busy and engaged in many activities • Dozens of offices and 100’s staff. • Mismatch between policy and ability to deliver Introduction

  9. Added difficulty • Political issues – involved in everything you do • Bureaucracy – fact of life • Agencies / institutions guarding patch • Many stakeholders • Government / Ministry • State Governments • Exporters • Board • Industry associations • Staff Introduction

  10. Successful TPOs • No two TPOs are the same • Setting of variables different • Flat management structure • Best people work with industry. Career specialists. • Very close relationship with industry • Respected and trusted by industry • Clearly identified corporate identity • Clearly defined objectives & work programmes • Very quick at doing things / speed • Continuous analysis and review • What can we do better? • Are we doing the right things? Introduction

  11. The key to success • Develop services • Effective in meeting the needs of clients • To succeed: Consultation with industry must be very high • Deliver these services within a conventional government organisational structure Introduction

  12. Strategic issues • * Who are the clients? Who do you work for? • * What markets do you concentrate on? Priority markets? Where do you put your best people? • * What services are you going to provide? How do you design a service? Easy to do low grade work! • How do you measure performance? • Work programmes – where do they come from? Introduction

  13. Who are our clients? • Do you give the same level of service to all clients? • Catagorise clients – how? • National export strategy • Select companies that you can impact on • Different levels of service for different categories • Resolve issues – clarity for trade reps • Export targets for categories of client • Use this as a measure of performance • Keep everyone happy – how. Use technology. Introduction

  14. What markets? • Key policy issue – where do you put resources? • National export strategy – priority markets • Balance between markets and new markets • Objective – diversify? • Some markets – multiple trade offices • Use consultants in remote regions Introduction

  15. Range of services • The range is determined by your client base • Consult with the clients. Ask them! • Different classes of client = different levels of service • Big company vs. small company • Your capability • Information provider! • Identifying distribution channels, target customers and buyers for clients • Customised in-market information, itineraries and briefings • Access to external market expertise and professional service Introduction

  16. Work programmes for a Trade Rep • Must be derived from key sectors / clients • Key sectors / clients are defined in the National Export Strategy • Head Office works with a sector / client to define the work. • Must develop techniques to reduce waste from: • Non priority clients / sectors • Local market enquiries – judgement call • Unavoidable work for other stakeholders • Use technology Introduction

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