To help reduce the nation’s staggering trade deficit, Congress has mandated significant assistance programs for small- and medium-sized US companies – those with less than 500 employees – that export products and services. Importers don’t get such help.
Mayen cautions that overseas’ market analysis, a go-slow approach and learning about the trade process are essential for businesses considering the export business.
“No. 1 is: Before you get on a plane or ship anything, read about and tap into the export support community network,’’ Mayen says. “There’s an entire network of free services for companies that want to explore these opportunities. … We want to be your cheerleader and your messengers.’’
The Office of Export Promotion will help companies develop a viable export plan, locate buyers and potential markets and educate them about trade issues.
The U.S. Commercial Service, which promotes trade under the U.S. Department of Commerce’s International Trade Administration, also provides a wide range of services for exporters.
“Our mission is to work with US companies to help them export US-made goods and services,’’ says Susan Widmer, director of the Northern New Jersey office of the US Commercial Service. “It’s all about increasing US jobs,’’ she says.
Trade counseling, market intelligence and business matchmaking are some key services offered. A step-by-step handbook titled “A Basic Guide to Exporting,” explains how to get started, conduct market research, avoid pitfalls and where to find help.
“There are plenty of people in New Jersey who are super knowledgeable and willing and able to help a business and take it to the next step,’’ Widmer says. “It’s about finding the right company at the right moment in time when senior management wants to go overseas.”
Nevena Simidjiyska, a partner at the law firm of Fox Rothschild who co-chairs its International Trade Group, recommends would-be exporters obtain legal advice to navigate the labyrinth of international trade regulations.
“It’s not that hard to comply with these rules,’’ explains Simidjiyska, who advises clients on export licensing, economic sanctions, and compliance with the US Export Administration Act. “It just takes a little bit of knowledge.”
Simidjiyska stresses that knowing the rules and having proper legal agreements with foreign distributors are critical to the bottom line: Making profits.
“You see the news – the export laws are very dynamic,’’ Simidjiyska says. “It’s becoming a much more important part of not just compliance, but risk management for US companies.”
Exporting also allows American businesses to diversify their markets, making it easier to weather a US downturn if their goods remain in demand elsewhere.
US officials continue seeking ways to bolster exporters’ opportunities.
Case in point: Earlier this month, the US Senate followed the House and passed the United States-Mexico-Canada Agreement (USMCA), a trade deal designed to enhance the interests of small- and mid-sized businesses in the global marketplace.
“The USMCA levels the playing field for small businesses and unlocks opportunities for those that have yet to tap foreign markets,” Steve Bulger, Atlantic regional administrator of the U.S. Small Business Administration (SBA), said in a statement.
Proponents tout the deal – supported by President Trump – as particularly helping small businesses engaged in digital trade by increasing intellectual property protections and cutting red tape costs.
The SBA says more than 18,600 of roughly 20,000 exporters in New Jersey qualify as small businesses, sending more than $10 billion in goods and services to Canada and Mexico in 2018.