Bringing the World to PA 2022

The World Trade Center Harrisburg in conjunction with the Pennsylvania’s Department of Community and Economic Development hosted Bringing the World to PA 2022 on September 14 at the National Civil War Museum in Harrisburg PA.  Everyone was excited to be meeting in person for the first time in several years due to the Covid pandemic. 

12 Pennsylvania’s International Trade Representatives, 30 clients representing 22 regional businesses, 6 sponsors and exhibitors, and other partners joined together for a spirited day of discussing international market opportunities.  12 client companies were new, first time attendees of the event.  Overall, 115 meetings took place between trade representative and businesses.  

The day started bright and early with several 8 am meetings.  By 9 am, and throughout most of the day, the trade representatives had a steady flow of meetings.    Lively discussions continued into the luncheon.

Allan Klinge, Chair of the WTCH Board, shared recent trade successes and then introduced our two speakers.  Randy Campbell, Administrator of FTZ 147 provided an overview of our region's foreign trade zone’s history and spectacular growth in recent years.  Amy Sahm, Senior Vice President and Manager, International Group, Fulton Bank was our keynote speaker.  She provided a review of the current environment of increasing global sanctions programs, potential banking delays and fluctuating currency markets.

 

 Everyone was back to business after lunch with many of the afternoon meeting slots completely filled.  The day ended with positive words of successful discussions and promising trade leads.   We look forward to advancing the prospective opportunities from these meetings through export work orders, projects and grants.

Maureen Hotchner, Hotchner Workplace Wellness, was one of the first time attendees.  She positively commented about the event, saying, "Thanks so much for facilitating the “speed dating” event this week!  I learned a lot and it was fantastic meeting the local and foreign attendees." 

Client Chiemeka "Kingsley" Chikezie from Air Dynamics in York, PA summed up the event perfectly with these words,  "Air Dynamics appreciates the opportunity to connect with the various Authorized Trade Representatives from yesterdays PA World Trade event.  We utilized the opportunity as a chance to gather information regarding the various markets and guidance regarding International Trade (Imports/Exports). All the representatives were more than helpful, and the guidance provided was invaluable." 

A Guide to the Global Help Desk

Announcing PA's New Taiwan Trade Office

                  

Pennsylvania's Office of International Business Development is pleased to announce that Anemone Ventures is the Commonwealth's new Authorized Trade & Investment Representative in Taiwan.

PA based companies can access the services of the Taiwan trade office by contacting their Regional Export Network Office - WTC Harrisburg is the regional partner for southcentral PA based firms.  Examples of services include: 

·         Gathering marketing and competitive intelligence

·         Providing insight and analysis on market entry strategies

·         Identifying overseas partners, distributors and agents

·         Providing regulatory information

·         Identifying relevant trade events

·         Conducting foreign company background checks

·         Organizing in-country meetings and logistical assistance

·         Assisting with trade leads and more....

Additional PA trade offices are located in Australia, Canada, Central and Eastern Europe, China, Germany, India, Mexico, Middle East, Netherlands, Singapore, South Korea, and the United Kingdom.  These 13 offices cover 46 countries and services are available at no cost.

Here is why Taiwan is relevant now to consider in your next business expansion plan:

Taiwan is a leading technology based economy known among the four Asian Tigers (Singapore, HK, South Korea and Taiwan) and despite the COVID-19 global impact, Taiwan has been able to display a strong economic growth of an estimated 6% in 2021. 

Taiwan’s continuous economic growth over the past three years has been primarily driven by the island’s world-leading semiconductor manufacturers and their ongoing expansion. Other factors include the considerable investment from companies exiting China due to international trade disputes, China's internal crackdown on technological companies and the vigorous construction of renewable energy facilities in Taiwan. These growth engines have boosted investor confidence in Taiwan; attracting significant foreign investment to create a momentum on which substantial current and future renewable energy efforts are carried forward. 

Taiwan is a democracy with a sound legal system, strong Intellectual Property (IP) protection, and a well-educated and skilled workforce. These provide the foundation which has enabled Taiwan to position itself as a regional technology hub, highly attractive to multinational companies seeking business expansion opportunities on the island and in East Asia.

Taiwan is located within 4 in-flight hours from major Asian markets such as China, Japan, Korea, and Singapore. The island can thereby serve as a practical and logistical springboard into China and other markets in the Asia region.

The average voyage time from the South Port of Kaohsiung, the 15th largest in the world, to five major ports including Manila, Singapore, Hong Kong, Shanghai, and Tokyo is approximately 53 hours. It is an important bridge between Europe, United States, Japan and the emerging Asian markets, and a top choice for operation centers of multinational companies in Asia Pacific in addressing their logistics and supply needs.

 

Taiwan Key Facts:

• Population: 23.57 Mil
• Official Language: Mandarin
• Land area of 36,193 km2
• Major Cities (by population): Taipei (capital), Kaushuing, Taichung and Tainan 
• GDP: USD 759.104 billion (2021)
• GDP Per Capita: USD 34,880 (2021)
• 2022 GDP Estimated Growth 4.5%
• A super-aged society by 2026 
• Currency: USD 1.00 ≈ NTD 28.00

Taiwan as a Business Hub in Asia:

• Top 5 export destinations: China and Hong Kong, ASEAN, USA, EU, Japan (2021)
• High level technological workforce
• Relatively low operational costs 
• Modern and efficient infrastructure 
• Leading high-tech and OEM manufacturing
• Legal certainty

Taiwan International Ranking:

• 4th globally and 2nd in Asia in the Investment Environment Risk Assessment Report, 2021
• 8th most competitive economy, 2021
• 16th globally in the World Talent Ranking, 2021
• 6th Freest economy in the Index of Economic Freedom, 2021
• 15th Ease of doing business, 2020
• 5th Largest foreign exchange reserves, 2021
• 21st Ease of starting a business, 2020
• 2nd World’s safest country, 2020
• 30th Renewable Energy Attractiveness, 2021
• 22nd GDP Ranking, 2021

 

Industrial Clusters:
Taiwan has a comprehensive upstream, midstream, and downstream supply chain supporting their technology based industries and their need for customized components.

It has the highest industrial cluster density in the world. And its successful IT competitiveness mainly relies on superior high-tech infrastructure and R&D talent.

The industrial clusters have positioned Taiwan globally as:

• 1st in foundry and packaging & testing manufacturing
• 2nd largest producer of IT hardware equipment 
• 2nd in IC design industry
• 3rd in PC products

International Investments:
International corporations including Google, Microsoft, ASML, Corning, Micron and Ørsted have increased their investments in Taiwan to intensify collaboration in R&D, advanced manufacturing, and industry collaboration.

FTZ 147: A Supply Chain Success Story

Thirty-five years ago, The Reading Chamber of Commerce filed an application with the US Foreign-Trade Zones Board resulting in the creation of Foreign-Trade Zone 147 (FTZ 147), the 147^th such zone established in the US.  For perspective, as of the end of 2020, there were 298 FTZ’s in and around the various U.S. Customs Ports of Entry.  The original Zone covered the land at the Reading Municipal Airport.  
FTZ 147 now covers eleven counties in Southcentral Pennsylvania:

• Adams County
• Berks County
• Cumberland County
• Dauphin County
• Franklin County
• Fulton County
• Juniata County
• Lancaster County
• Lebanon County
• Perry County
• York County

FTZ 147 got off to a slow start.  For various reasons no zone activity occurred until 1996 when Baker Refractories began to use the FTZ program to eliminate Customs Duties on imported magnesite.  That use was short lived as the United States eliminated the import duties on magnesite a year or so later.  While the zone grew by expanding the service area into additional counties, the use of the zone by companies stalled until 2005 when Clarks’ Shoe Company began importing footwear using FTZ procedures.  The next 15 years saw the explosion of zone use in FTZ 147.  The amount of merchandise moving thru foreign-trade zones in FTZ 147 went from $0.00 in 2005 to $14,073,059,437.00 in 2020.

In 2020, the most recent year statistics are available, FTZ 147 received over 10 times more merchandise in zone status than any other zone in Pennsylvania.  FTZ 147 ranks 5th in the nation, and 2nd for an inland port, for receipts of merchandise into warehouses in Zone Status.  FTZ 147 ranks 20th in the nation in terms of exports from warehouse zones.  Remember, FTZ 147 was last in the nation in 2005, just 15 years ago.

Companies can use foreign-trade zones to maintain the cost competitiveness of their U.S.-based operations in relation to their foreign-based competitors.  The fundamental benefit offered by the FTZ program to U.S.-based companies include:

• Deferral of Duties
• Reduction of Duties
• Elimination of Duties

For the U.S.-based companies involved in international trade, the FTZ program provides a means of improving their competitive position in relation to their counterparts abroad.

For more information regarding U.S. Foreign-Trade Zones, please contact Randy P Campbell at FTZ@CampbellTradeGroup.com