Using Technology to Facilitate Trade

1. Using Technology to Facilitate Trade Presented by Sue Welch Chief Executive Officer CrossStreetTrade, Inc. 2 Main Street, Gloucester, MA 01930, USA

2. Building a Trade Platform that Unites • Countries • Associations • Small and Medium Enterprises • Global 2000 Organizations

3. Developing Countries • Are promoting traditional industries • Are developing new industries to promote • Seek to remove trade barriers through negotiation and trade agreements • Seek to attract investment • Need to modernize trade facilitation infrastructure

4. Associations • Promote a specific industry • Are in business to add value for current members • Want to expand membership • Are exploring regional capacity building • Have close relationships with government • Are a key source of information and services to members

5. Small and Medium Enterprises (SME) • Are most concerned about legislative stability and obtaining market information • Trade barriers inhibit entry to global markets • Inexperience, lack of trade readiness • Finding and developing new partnerships is expensive and time consuming • Lack credibility in new markets • No standard supply chain infrastructure

6. Global 2000 Corporations (G2000) • Tend to buy from who they know • Paradoxically, seek new sources of goods and services • Take 3 to 6 months to find and certify new suppliers • Are competing against design-to-delivery cycles that have shrunk up to 90% • Are implementing regional capacity programs • Value information as highly as products and services

7. What is the Value of Information? • The search and identification of qualified sources for goods and services absorbs about 53% of the entire sourcing cycle • 80% of the cost of product is built in the design and development phase when sourcing occurs Automating these processes through the use of Internet based technology and e-markets can reduce cycles by an average of 30% Aberdeen Group

8. Technology is a Competitive Differentiator • The information created is a commodity that is as valuable as the goods and services being traded • Trade partners are highly dependant upon each other for information that drives their organizations, reduces costs, speeds goods and services to market • Failure to provide information, breaks down the processes and marginalizes the non provider

9. Technology Role for Governments • Provide an infrastructure that supports • Information • Timely, easily disseminated • Consistent • Complete • Reflective of Actual Fees and Charges • Readily Available and Easily Accessible • Processes • Transparent • Globally Normalized, Non-isolationist • Speed goods, raw materials, and services to market

10. Create Bridges Over Trade Barriers • Begin, today, to build a standardized trade platform that provides the tools, content, business infrastructure and contacts to unite associations, companies and governments: • Establish a transparent payment process for Customs duties and fees • Centralized, Internet accessible national database for trade information • Inexpensive access to hardware and software for associations and SMEs • On-line testing for exporters • Centralized site for international document creation

11. Virtual Trade CenterTM one step at a time Information CenterTrade Analysis Maps, E-Learning Export CoursesStandard Codes, HTS Schedules Trade Tools CenterTrade Readiness Audit, Global Cost Calculator, International Trade Documentation Virtual Trade CenterTM Fulfillment CenterSupply Chain Execution, Buy/Sell on lineTrace & Track,Invoicing, Financing, Customs Community Center Registration, Virtual Trade Missions,Video Conferencing, On-line Showrooms, Partner Profiling, E-Links to Banks, Forwarders, Government

12. Who Can Benefit? • SME • Standardized help to be trade ready • Participate in virtual trade missions • Electronic showrooms for products and offerings • Access global supply chain infrastructure • Find and qualify certified Buyers/Markets • Easy access to global data • Governments • Improve matchmaking with supplemental electronic Trade Mission • Easily collect, standardize, disseminate, information • Build a transparent trade process • Ability to regionalize capacity to attract investment • Associations • Provide electronic showroom for offerings • Provide web conference format to establish relationships before meetings • Co-produce electronic trade missions to other countries or focused on specific corporations • Provide standard supply chain infrastructure for members • Assist members in becoming trade ready • G2000 • Create private trade missions • Work with potential sources to ensure compliance with requirements • Find new sources at a fraction of the traditional cost and time • Can more easily find new markets

13. Next Steps • Start small - select one process with high probability of success or easily implemented • Provide one resource on line - HTS • Connect one group to another, i.e. e-learning • Explore alternatives to high cost equipment - get on line in the electronic economy • Build on your success with another small, easy to implement, step • Be competitive - share information

14. Thank youCrossStreetTrade, Inc.2 Main Street, Gloucester, MA 01930, USAinfo@crossstreettrade.comPhone - 1-978-281-3723