Of course, the tragedy of these disasters transcends the loss of material items and capital. From the hundreds confirmed dead or missing, to the destruction of habitats and entire ecosystems, there’s much to mourn. At the NDTO, we’re keeping the victims in our thoughts.

Harm Done

Much like natural disasters put a pause on everyday life for the thousands to millions they often affect, both directly and indirectly, they also put a pause on international trade. Even if the disaster only hits a relatively small area of the world, its impact spreads like a disease from one end of the supply chain to the other.

To start, imports and exports can’t continue when the chosen methods of transportation are unable to reach their intended destination. Oftentimes, entire train, plane, cargo ship, and truck routes are completely shut down or redirected. These delays can be overcome, but the decline in parts supplies and immediate consumer demand can be particularly detrimental. Furthermore, we must factor in the possibility of production plants and ports being within the paths of destruction. If a main point of manufacturing is unable to operate, then exports stop until it’s once again functional. This could take days, weeks, or months depending on the severity. Production could even stop indefinitely.

Domestic and international companies expecting parts or goods from these specific plants then must find an alternative source, which can reap more delays depending on contractual obligations and negotiations. The interconnectedness of manufacturing and trade becomes a pitfall rather than a blessing in these situations. Dominos falling one by one. Until eventually, the problems caused by all the delays and shortages fall right into the laps of the consumers, directly affecting what they can purchase, the cost of these products, and their ability to compensate for deficient resources.

Problems & Resolutions¹

We have witnessed several intense natural disasters in the past two decades that have left entire sections of the global supply chain scrambling to mend the resulting gaps. To name a few:

1. 2020, California Wildfires

Due to either the loss or temporary vacancy of many manufacturing plants, the widespread California wildfires of 2020 forced a number of delays and adjustments to the US supply chain. A few rebuilding projects are still underway.

2. 2017, Hurricane Maria

Facilities that produce sterile saline bags located in Puerto Rico were almost completely wiped out by Hurricane Maria in 2017. A handful of hospitals in the US and abroad had to ration saline due to the sudden shortage.

3. 2012, Hurricane Sandy

The ports of New York are major components of the global supply chain. When 2012’s Hurricane Sandy stopped oil tankers, refineries, storage depots, and more from operating, repercussions were felt among many nations.

4. 2011, Japan Earthquake and Tsunami

Major automobile and mechanical part manufacturers faced monumental setbacks following the 2011 Tsunami in Japan. Factories across the country and the US shut down and many companies had to find suppliers elsewhere.

As we can see, all it takes is one perfect storm, a few lost buildings, closed highway systems, grounded planes, and inaccessible ports to put the supply chain’s calculated flow in jeopardy.

But these setbacks can be overcome, and have been time and time again. Natural disasters are an unfortunate but common occurrence, and thanks to modern technology and science, can be predicted. Everything from a storm’s severity to how long it will last can be accurately reported days before it arrives. Therefore, its impact on the supply chain is measurable. Loosely, but measurable nonetheless. With the right preparations put in place, these negative impacts are usually mitigated or avoided completely.

The best thing you can do for your business is to formulate a natural disaster response and recovery plan. Strategic foresight has saved companies across the world billions in losses every year. Here are a few things this plan should cover:

1. Backup Suppliers: Who will you receive the necessary supplies from should your main sources be incapacitated?
2. Labor Shortages: Should your employees need to evacuate, how will you make up for the lost labor?
3. Shipment Redirects: If your usual ports are inaccessible or closed, where can your imports or exports be redirected? Can you make up for the delays?
4. Outside Support: Are you in contact with the correct governmental departments and disaster relief agencies? What kind of financial support can they provide?
5. Monitor Partners: Do your partners have natural disaster plans in place? Do these plans take into consideration your relationship?

No natural disaster response and recovery plan is perfect. There’s only so much you can prepare for, even given detailed information regarding a storm’s intensity before it strikes. But having no plan at all is far riskier.

There’s far more to consider than the factors discussed above, but they’re a great place to start.

What’s at Stake for ND?

North Dakota has the geographical advantage of being the furthest from an ocean you can get in North America. Hurricanes and tropical storms are of little to no direct consequence to us. Earthquakes, too. We only feel their economic reverberations later on.

Still, we’re not without our troubles. We all know a good old fashioned North Dakota blizzard is nothing to scoff at. Post-winter flooding? Late summer tornadoes? Wildfires in the dry west? Grueling and horrible. Though we’re fortunate enough to see minimal to zero casualties in the wake of these things thanks to our small population and swaths of empty land, they still affect our day-to-days. Furthermore, they affect our farming operations and exports—two major means of state income.

Does your business have a plan in place for these inevitable seasonal storms? Have you revisited this plan within the last five years? Due to an abundance of factors, weather patterns have changed and worsened in some areas. It may be time to adjust your strategy so you can continue to operate when the worst comes to pass.

Natural disasters are a guarantee, not a maybe. Even if the Midwest is the least affected by them, it doesn’t take much to disrupt the parts of the supply chain that keep our states running. Don’t let them obliterate your trade plans. Be prepared, stay up-to-date, and know the best methods for keeping your business safe.

As always, the NDTO is here to help. In times of need, we’ll do what we can to ensure your exports stay on track, your business thrives, and nothing gets in the way of your success!

¹The Impact of Natural Disasters on Economy and Supply Chain — and How to Prepare for the Worst (thomasnet.com)

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Communication, of course. You know where your product will sell, you know who’s able to sell it. Now, you’re ready to meet with the prospective dealers, representatives, and partners with the knowledge and capabilities to make your international expansion a success.

There’s a correct way to do this, and there’s a correct way to maintain contact once an agreement is set in stone. Let’s cover a few key communication influences and methods that can transform strong international trade relationships:¹

Culture

Cultural differences should be semi-established by the time you’ve completed your market compatibility research. But find out more in the areas that feel lacking. For instance, learn how negotiations are typically done by businesspeople native to the chosen market. You may find it’s not much different than how you already conduct them in the US. Conversely, you may learn there are guidelines that could put a partnership in danger if not adhered to.

Cultural differences also reveal themselves in small talk, clothing choices, general manners, and more.

Language

Culture can sometimes affect language too. Even if you speak the partner’s language, or they speak yours, fluency is a spectrum. There are a multitude of nuances and underlying meanings that are troubling to decipher as a non-native speaker. Effective communication factors in language barriers to curb the potential for offense.

Technology

Technology is not only vital but necessary for international communication in the 21^st century. Constant access to collaborators is no longer rare but expected. However, there’s still proper etiquette to the act of communicating via technology. A good rule of thumb is to schedule a time period for the communication, during the partner’s business hours, and show up already possessing the skills to navigate their preferred channel of communication.

However, you should never solely rely on technology. If you have the means to do so, face-to-face meetings should be prioritized. Especially for initial contact.

Writing

Sometimes, it can be difficult to articulate a thought or idea verbally. Taking the time to communicate through written correspondence can allow for more thoughtful, well-rounded conversations. Writing out the topics you wish to cover prior to a first-time meeting not only ensures you stay on course, but also ensures you remember every point you hope to make.

Time

Don’t rush negotiations, but also don’t string potential partners along. There’s a happy medium to international trade communication.

You should also take into consideration literal time differences. Where it’s become commonplace to work outside of business hours in the US, many countries observe standard eight-hour workdays and avoid working overtime.

Communication is not a to-the-point subject. It’s multifaceted and can be challenged by the smallest details. This is especially true when it comes to international business and trade negotiations. Be prepared to experience every style of communication that exists and to occasionally make mistakes—they’re inevitable in this business.

The NDTO is happy to advise and mediate your foreign market export negotiations. We’re here whenever you need us!

¹5 Ways To Better Communicate With International Business Partners (forbes.com)

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VIEW THIS RELEASE ONLINE:  governor.ND.gov

SEOUL, REPUBLIC OF KOREA (OCT. 14, 2024) – Gov. Doug Burgum on Monday led a North Dakota delegation on the first day of a trade and investment mission to South Korea, signing a memorandum of understanding (MOU) between the state of North Dakota and the Korea Institute of Energy Research (KIER) to establish a partnership and promote discussions in energy technology research and development.

With a population of nearly 52 million people in an area slightly over half the size of North Dakota, South Korea – officially the Republic of Korea (ROK) – is the world’s second-largest exporter to North Dakota and 17^th-largest export market for North Dakota. The ROK is the eighth-largest export market for the United States and is the world’s sixth-largest exporter to the United States. The ROK’s foreign direct investment in the United States was nearly $75 billion in 2022, an increase of 5.8% from the previous year.

The MOU signed today highlights energy as a vital factor for both the ROK and North Dakota economic development and stability, with both parties working together to identify common goals and areas of mutual interest. Those areas include information exchange, business opportunity expansion and alliances, and support for technological progress and innovation – including enhancing research capabilities in advanced clean energy technologies such as carbon capture and storage, hydrogen and batteries.

“North Dakota is a leader in energy innovation, and this partnership with Korea will enhance our competitiveness by advancing groundbreaking solutions in hydrogen, carbon capture and clean energy – helping us to continue building an all-of-the-approve energy supply network that combines fossil fuels and renewables,” Burgum said.

The signing ceremony at KIER headquarters in Daejeon was attended by Burgum, KIER President Chang-Keun Yi, Vice President Seong Ok Han and Charles Gorecki, CEO of the Energy & Environmental Research Center (EERC) at the University of North Dakota, as well as Commerce Commissioner Josh Teigen and North Dakota Trade Office Executive Director Drew Combs.

“This MOU serves as a stepping stone for the further development of energy technology between Korea and the United States. KIER will continue to expand international joint research in the energy technology field to achieve national carbon neutrality,” Yi said.

North Dakota’s unique geological structure has the potential to store approximately 250 billion tons of carbon dioxide – enough to store all the United States’ CO2 output for the next 50 years.  The state aims to achieve carbon neutral status by 2030 through innovation with no new mandates or regulations, and carbon capture is core to meeting that goal. KIER is Korea’s only government-funded research institute, with its own mission of leading their country to carbon neutralization by 2050 through technological innovation and commercialization, including hydrogen, renewables, energy efficiency, and carbon-based clean energy.

KIER was the first stop on the weeklong trade and investment mission to the ROK for Burgum and fellow members of the North Dakota delegation from the North Dakota Department of Commerce, North Dakota Trade Office, EERC and North Dakota companies representing agriculture, energy, manufacturing, aerospace and technology.

One of North Dakota’s largest manufacturers and most recognizable brands, Fargo-based Bobcat Co., is a member of the ROK-based Doosan Group. Burgum plans to meet later this week with Doosan Bobcat CEO and Vice Chairman Scott Park.

—    #  #  #   —

PHOTO CUTLINES

KIER MOU signing

North Dakota Gov. Doug Burgum and Korea Institute of Energy Research President Chang-Keun Yi shake hands after signing a memorandum of understanding on energy technology research and development between the state of North Dakota and KIER on Monday, Oct. 14, 2024, in Daejeon, Republic of Korea, part of a trade and investment mission to the ROK.

KIER Burgum remarks

North Dakota Gov. Doug Burgum addresses Korea Institute of Energy Research President Chang-Keun Yi during a meeting Monday, Oct. 14, 2024, in Daejeon, Republic of Korea, as part of a trade and investment mission to the ROK. Next to Burgum are Charles Gorecki (left), CEO of the Energy & Environmental Research Center (EERC) at the University of North Dakota, and Commerce Commissioner Josh Teigen.

KIER hydrogen research

North Dakota Gov. Doug Burgum asks a question of Heonjoong Lee (right), senior researcher in the Hydrogen Research Department at the Korea Institute of Energy Research, during a tour of KIER on Monday, Oct. 14, 2024, in Daejeon, Republic of Korea, as part of a trade and investment mission to the ROK.

KEIR invitation

North Dakota Gov. Doug Burgum draws a laugh from Korea Institute of Energy Research President Chang-Keun Yi (left) and his staff as the governor invites them to North Dakota, noting the state’s population density of 11 people per square miles is less than 1/100^th of South Korea’s density of over 1,300 people per square mile. “We have plenty of room for you,” Burgum quipped during the meeting Monday, Oct. 14, 2024, in Daejeon, Republic of Korea, part of a weeklong trade and investment mission to the ROK.

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About Nick Lehr

Nicholas Lehr will be stepping into the role of International Business Specialist at the NDTO. With a passion for global commerce and a strong commitment to fostering economic growth, Nick brings a wealth of knowledge and a dedication to helping North Dakota businesses expand their reach beyond borders.

Born and raised in Moorhead, Minnesota, Nick developed a love for the Midwest and its rich culture. His upbringing instilled in him a strong work ethic and a deep appreciation for community—values that have played a key role in shaping his professional journey.

Nick is a lifelong learner who has continually sought out opportunities to deepen his understanding of the world, studying in Turkey and Israel/ Palestine and the global marketplace. He believes that international business is not just about financial success, but about fostering meaningful relationships and mutual growth between countries, regions, and businesses. This perspective drives his work at the NDTO, where he will focus on identifying new markets, assisting companies in building export strategies, and ensuring that North Dakota businesses have the resources and knowledge they need to thrive internationally.

His role as International Business Specialist involves guiding local companies through the various stages of exporting, from initial market research to securing international partnerships and contracts. Nick is particularly excited about helping small and mid-sized enterprises in North Dakota, as they have the potential to make a significant impact in the global marketplace. He believes that by empowering local businesses, we can not only boost the state’s economy but also enhance its reputation on the international stage.

Nick’s passion for business is complemented by a deep commitment to the overall success of the region. He sees his role as not only advancing individual companies but also contributing to the broader goal of enhancing North Dakota’s economic development and global competitiveness. His approach emphasizes collaboration, understanding that the success of one business can have a ripple effect, benefiting the wider community.

Outside of work, Nick leads an active lifestyle that reflects his connection to the natural world. He enjoys spending time outdoors, exploring the many parks and nature reserves in the region, which provide both relaxation and inspiration. Gardening is another one of his hobbies, where he finds joy in nurturing growth—an apt metaphor for his professional life as well. In addition, Nick values time spent with his family, drawing energy and motivation from those close to him.

We are confident that Nick’s passion, expertise, and dedication will make a lasting impact at the NDTO. We are thrilled to have him join our team and look forward to seeing the great work he will do to support North Dakota businesses in achieving international success.

About Mathew Warsocki

Mathew Warsocki, a native of Omaha, Nebraska, is our new Grants and Membership Coordinator. His family’s move to southern Wisconsin, followed by Minot, North Dakota during his middle school years, provided Mathew and his two siblings with a broad exposure to Midwestern life early on.

Growing up in Minot, Mathew was enthralled with the culture of his new home. From watching the artisans, chefs, and bakers at the Norsk Hostfest (you must try the lutefisk at least once!), going to his first rodeo, or the yearly visit of the North Dakota State Fair, there was always a new experience to behold. On skates since he was three years old, Mathew was thrilled to play hockey competitively through his school years.

Business and finance were longstanding focuses for Mathew growing up. He joined the Minot FBLA team and was successful at the State and National FBLA competitions for both Economics and Accounting. He graduated from Minot High School and followed it up by attending North Dakota State University in Fargo, ND, where he earned his Bachelor of Science in Finance. While at NDSU, Mathew was an active member in their Student Government, running both their Congress of Student Organizations and Student Court.

After earning his degree, Mathew worked with regional banks in various positions, from being a teller and branch manager, to commercial credit analysis, as well as working credit and treasury roles within the international grocery and insurance industries. Skilled in both financial analysis and the communication of complex financial situations, Mathew is glad to assist our members and exporters with their grant applications, trade trip budgeting, and research reporting to help ensure they find potential markets for their products and services.

If you can’t find Mathew at the North Dakota Trade Office, you will usually find him at a local trivia competition, keeping up to date on current events in business and geopolitics, cooking up an elaborate meal, or hanging out with his friends, family, and cat, Jack.

The post Welcome Nick and Mathew to the NDTO! appeared first on North Dakota Trade Office.

Since 2011, Unseen has worked tirelessly to end human trafficking from right here in Fargo, North Dakota. Unseen Guardians is a new corporate giving program inviting business leaders to take action and make a personal commitment to solve a complex problem like trafficking. “Businesses that join Unseen Guardians are part of a community standing against trafficking. Our goal is to create the first publicly recognized philanthropic badge dedicated solely to the fight against human trafficking and its root causes,” says Corinne McKenna, Unseen Guardians’ Corporate Giving Consultant.

Unseen’s primary direct method for combating human trafficking is partnership. Unseen reduces growth barriers for their anti-trafficking partners by providing custom communication tools. In 2023, Unseen partnered with 26 organizations in 30 countries. With Unseen’s products and materials, Unseen partners raised $7,129,625 in 2023 for trafficking survivors and at-risk individuals. The outcomes and efficacy of these partnerships are considerable: In 2023, Unseen partners directly served 257,628 people and their work resulted in a 733% return on investment for Unseen donors.

Becoming an Unseen Guardian business has many benefits, McKenna explains. First and foremost, you know you are making an impact. Whether your company is simply donating $1/day per employee, or also displaying the Unseen Guardian badge on your publicly-facing marketing materials, you are making a meaningful difference. “Beyond the membership donation, the other aspect of the program benefits is the public marketing side and the fact that your company is publicly standing against trafficking,” McKenna adds. Being an Unseen Guardian will significantly appeal to potential customers and clients. While paying for your goods or services, they know they are supporting a business that stands against trafficking.

When it comes to finding prospective businesses to join the program, Unseen Guardians has multiple approaches. Though all businesses of all sizes and industries are encouraged and welcome to join, they highly value B2B or B2C retail and e-commerce businesses due to their shorter supply chain processes and point-to-point delivery. The Unseen Guardian badge can be featured across multiple touchpoints and channels which results in greater visibility and support for Unseen’s work.

Unseen Guardians also looks for businesses with large marketing initiatives and extensive supply chain processes. Namely, businesses that import and export internationally. Human trafficking is an issue that knows no borders, and therefore, can only be solved through international cooperation.

Which is where the NDTO comes in. “Because of the relationships and the connections that occur by nature of trade, we think that this could be a key partnership in making sure that corporate action against trafficking is happening across borders and across industries,” McKenna says. NDTO exporter members can give Unseen Guardians a major advantage in high-priority countries across the world.

Unseen has been granted the Platinum Transparency Award by Candid, meaning they are highly transparent in the information they publicly share, including their finances, strategies, goals, progress, and impact. Their anti-trafficking partners are also vetted and top-rate, doing essential work providing rescue, repatriation, safe shelter, food, clean water, medical care, vocational training, job creation, legal services, counseling, and more. Investing in Unseen is investing in these incredible anti-trafficking partners, equipping them to expand their work.  The Unseen Guardian program provides a stable base of hope for Unseen partners’ anti-trafficking work around the world. McKenna believes that the positive impact will only grow over the next few years: “We definitely expect the program to expand in both breadth, membership, and complexity as we engage more businesses in this fight.”

The NDTO couldn’t be more thrilled to be an Unseen Guardians partner company and use our platform to communicate their mission. If your business wants to get involved in the fight against human trafficking and become a part of a growing movement, you can reach out to the team at info@weareunseen.org or (701) 261-3598. To find out more about Unseen Guardians and read the survival stories of real victims, visit www.weareunseen.org. You can read Unseen’s 2024 annual report here.

¹ Global Estimates of Modern Slavery Forced Labour and Forced Marriage_0.pdf

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From there, each state is given the freedom to mold their programs around the needs of their exporters. STEPND is a popular resource for new and existing exporters, with a high volume of applicants each year. The NDTO is excited to continue providing ND businesses with the support they need in order to continue growing internationally and producing goods and services that stimulate our economy.

Opportunities made possible through the STEPND program include organized trade missions, foreign market sales trips, market research, international marketing, translation of marketing materials, and more. Over the years, we have seen great success in the utilization of STEPND funding to pursue these various opportunities and strengthen ND’s position in the global trade network.

This year marks the 71st year the Small Business Administration has supported American businesses. Since its inception in 2010, the STEP program has awarded $255 million to state international trade agencies and has reported $6.8 billion in exports from grant recipients. Since 95% of the world’s consumers and two-thirds of all purchasing power are located outside the United States, this grant program plays a critical role in providing access to capital, access to markets, and access to buyers.

How to Apply

Applications open on October 1, 2024.

The program will accept applications for activities occurring from September 30, 2024, through September 29, 2026, or until it is fully allocated.  Any North Dakota small business as defined under SBA guidelines is eligible to apply. The selection of companies will be first-come, first-serve for up to two activities per company. Companies and activities must be eligible for the grant when applications are submitted, and all projects must be approved before the activity takes place.

Applications will be available on October 1, 2024, and can be found here: https://ndto.com/grants/step-nd/.

Please read all project guidelines and details to understand the importance of receiving federal funding.

NDTO will facilitate STEPND 2024 with the help of partners, including the North Dakota District Office of the SBA, the North Dakota Small Business Development Center (SBDC), the North Dakota Department of Agriculture, the North Dakota Department of Commerce, and the U.S. Commercial Service.

About the North Dakota Trade Office and Small Business Administration

The North Dakota Trade Office is a membership-based, private/public partnership that provides education, research, advocacy, organization, and leadership so that NDTO members and North Dakota companies can increase exports and grow their international business.

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

For more information about N.D.’s STEP program, please reach out to Mathew@ndto.com.

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Looking Back: 2023 & 2024

Following a 2021-2022 spike of recovery from a 2020 pandemic-induced decline, international trade saw a gradual dip in 2023. Or really, a return to the steady rate it had sat at for five years prior. Overall, the value of international trade was around $31 trillion by the conclusion of 2023.¹ Of that total, North Dakota contributed $8.8 billion in foreign exports and $4.7 billion in imports.²

2024 saw a smooth, gradual growth in goods traded during Q1 and Q2.³ This is predicted to continue as the year wraps up. UN Trade and Development (UNCTAD) accredits this year’s success to positive trade dynamics between the US and other developing countries.

Trade in 2023 and 2024 has been heavily influenced by an increase in demand for green energy products and AI related computers.³ Additionally, the many straining conflicts that have intensified or arisen in the past four quarters. Powerhouse importers and exporters—like the US, Canada, and China—have had to navigate the regulations, tariffs, and delays that have resulted. Still, numbers have continued to rise, and manufacturing rates are soaring.⁴

Looking Ahead: 2025

Can we expect the current, prosperous state of trade to continue into 2025? The Organization for Economic Cooperation and Development (OECD) says yes. Even better, they predict global trade of goods and services to grow by 3.3%.⁵ This heavily depends on whether inflation continues to fall. But this is looking probable, the US and other leading trade countries having already overcome the impact of serious economic setbacks such as the pandemic and Russia-Ukraine war.

However, the OECD expects China and East Asia to promote the most global economic growth. It’s also looking like trade will thrive within the global East/West rather than between them—geopolitical issues and tariffs diminishing the potential for expansion.

The World Trade Center’s (WTO) Global Trade Outlook and Statistics report from April 2024 states that there could be fragmentation in trade flows due to disruptions in the Suez and Panama Canals.⁶ Over 70% of the Panama Canal’s traffic is destined for or originates from the US. North Dakota utilizes the canal for a portion of our soybean exports, so the freshwater shortages that are hindering the efficiency of trade could indirectly hurt our economy.

Still, there’s a lot to look forward to as 2025 nears. There’s also a lot of time left for your business to prepare for any bumps in the road. If you haven’t already read up on the 2025 trade forecast, the ITA, WTO, and UN are watching any developments that may influence exports closely.

As 2024 winds down and 2025 looms, it’s the perfect time to take stock of all your accomplishments and failures in exporting from the past few months. What can you do differently? How can you overcome the turbulence ahead? As always, the NDTO is here to help your business stay on track. Lots has changed since the beginning of this year, but we’re on top of all your export needs. Here’s to a new year on the horizon!

¹ https://unctad.org/system/files/official-document/ditctab2024d1_en.pdf

² State Trade and Economy Factsheets

³ https://unctad.org/system/files/official-document/ditcinf2024d2.pdf

⁴ World Manufacturing Production (unido.org)

⁵ Global trade growth could increase two-fold or more in 2024 | World Economic Forum (weforum.org)

⁶ article viewer | WTO iLibrary (wto-ilibrary.org)

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It’s what can be described as an all-encompassing position. They develop and oversee, or at the very least stay informed on, all but a few aspects of a company’s trade strategy. This can be done internally as an employee or as a third-party provider—like the NDTO!

Welcome to the fourth installment of “Moving Parts,” a series from the NDTO where we discuss the many individuals and organizations that make international trade possible. International Trade Specialists work hard to ensure “possible” becomes productive.

International Trade Specialists: What They Do

It would be easy enough to say International Trade Specialists do a lot and just leave it at that. But truly, it’s subjective. Their role in trade management can vary depending on who they work for—private agencies, non-profits, large-scale companies, or themselves. However, it’s best to consider all they may take part in for an accurate sense of their influence on various processes.

Here are a few of their major and minor responsibilities:¹

1. Track global market trends and analyze risks and opportunities.

Like supply chain managers, International Trade Specialists are often tasked with predicting the state of various global markets to determine whether organizing trade deals is worth the investment.

2. Negotiate trade contracts and ensure compliance with the help of Trade Compliance Experts.

International Trade Specialists play a meaningful role in the negotiation and closing of trade contracts, ensuring all parties are complying with international standards and benefiting from the contractual agreements.

3. Develop export and import strategies to optimize supply chain efficiency and minimize costs.

Everything has a price. International Trade Specialists work to make sure your company isn’t overspending or going about exporting in inefficient, ineffective ways by developing a strategy for every step along the process.

4. Coordinate with freight forwarders to adhere to regulations and standards.

Like they collaborate with supply chain managers and trade compliance experts, they also work alongside freight forwarders to make sure the actual moving of your product is done safely, securely, and legally.

5. Assign tariff classifications, keep track of duty rates, understand restrictions.

International Trade Specialists have acute, up-to-date knowledge of tariffs, taxes, rates, and other things that could hinder your ability to export. They also know how to make sure you can overcome these hindrances through the proper channels.

6. Mitigate risks.

Similarly, International Trade Specialists can help you avoid or dull the effects of risky ventures and oversights.

7. Facilitate international communication and build strong relationships.

International Trade Specialists often act as a great first point of contact when it comes to global partnerships and inquiries. Their expertise allows them a broader understanding of your partners’ needs and expectations.

Common Mistakes

Because they are equipped to manage so much of the trade process, International Trade Specialists can help your company prevent or alleviate a number of common export-related mistakes.

These mistakes include:¹

1. Trade Noncompliance: Failing to abide by the laws and agreements that control international trade due to lack of understanding.
2. Missing, Incomplete, or Inaccurate Documentation: Being unprepared with the paperwork necessary for compliance, customs clearance, and proper service.
3. Overspending: Complicating the trade process and having to allocate more money to accommodate additional channels and aid.
4. Incorrect Tariff Classification: Falsely or inaccurately labelling goods being exported and delaying their delivery.

North Dakota Resources

There really is no place like the NDTO. Our team comes complete with a couple International Trade Specialists—even if their title is slightly different. Always feel free to reach out if you’re struggling at any phase of exporting. Your success is our own.

Other than the NDTO, the team at the U.S. Commercial Services (USCS) office in Fargo are a great resource for any questions you may have when it comes to exporting, ND’s trade network, or ND international relations.

¹ https://climbtheladder.com/international-trade-specialist/

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This is why exploring market compatibility and casting a wide net is so important. If one market takes a major hit—for instance, those still catching up after the pandemic—you want to be ready to switch gears and push for advancement elsewhere.

There are several factors involved in discovering market compatibility for your product or service. Here’s what you will want to know about global markets before initiating the export process:

Export Market Potential

It’s best to estimate the value of something before throwing it on stage to perform. Finding the export market potential of your product involves “multiplying the number of buyers in the market by the quantity purchased by the average buyer, by the price of one unit of the product”.¹ By doing this, you’re getting pure, quantitative data that allows you to rank different markets by revenue success. You’re also finding plenty of crucial demographic information that can come in handy when the time comes to begin selling.

Country Economic Performance

It’s vital to look at a country’s GDP, GDP per capita, inflation, and median income as well.¹ These numbers tell us what sort of opportunities there are for business expansion and how the population is most likely to spend their income. How it all matches up to the economic states of other markets may be an eliminating factor.

Demand and Market Size

The information that can most accurately tell you how your product will perform in a certain market is how similar products perform—especially if your product isn’t B2B targeted. For example, if you’re looking to export farm equipment, you’ll want to see how other farm equipment manufacturers are faring. Then, you’ll want to factor in how you will do as a competitor. Which leads to our fourth research point…

Competition

Strong competition is a good thing, but too much of it may leave no extra room for your business. After determining whether or not there’s a high, consistent level of demand for your product in a certain country, find out what can set you apart from the other manufacturers.² If you can’t determine whether or not there is a unique angle to your product that the others lack, you may want to look to export elsewhere.

Local Regulations and Requirements

Not every market follows the same rules, meaning what works domestically could cause some serious delays overseas. You should know all the potential legal hurdles and regulatory practices before dealing with a new country.²

There’s a storm of possibilities to consider before you try your luck in a new market, but you’ll be grateful you did your research when you avoid the risks associated with trying to sell in the wrong place. As though exporting isn’t hard enough, lack of knowledge in the markets you enter can complicate the process tenfold.

Market compatibility research ensures you don’t crumble the minute you go abroad or expand your exports. With global business experts on our team, the NDTO can ensure the same thing! If you’re ever in doubt, give us a call.

¹How to evaluate international market potential? (kompass.com)

²Maven: Going Global: 5 Things to Consider When Bringing a Product to a New Market

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But who is it that makes sure the right amount of each material arrives at its designated manufacturing plant with efficiency?

Supply chain managers. That’s who. There’s so much data that requires constant monitoring when it comes to the supply chain. After all, it determines when, where, and how a product will be made; and therefore, when a company can expect to start earning profit. By utilizing the knowledge of supply chain managers, businesses everywhere can move forward instead of falling behind.

Welcome back to “Moving Parts,” a series from the NDTO where we discuss the many individuals and organizations that make international trade possible. For this month’s feature, we’ll dive into the crucial work done by supply chain managers to keep our parts moving!

Supply Chain Managers: What They Do

The flow of goods would look more like a hurricane than a steady current without supply chain managers there to keep it pushing in the right direction. They do plenty in terms of recordkeeping and analysis, but their involvement goes deeper than these baseline responsibilities.

Here’s more of what they do:

• Oversee material imports, exports, and the manufacturing process.

If a company is exporting commodity items, supply chain managers ensure they’re being sent to the right production plants and factories in a timely manner. If they’re importing commodities for manufacturing, supply chain managers are keeping track of the order, quantities, and shipments to ensure production stays on schedule.

• Track material totals for factory production and warehouse availability.

Ensuring factories have everything they need in the correct numbers to meet the demand of consumers is crucial. Supply chain managers work to acquire and measure the needs for a seamless production process.

• Communicate with global partners.

Acquiring these materials means constant contact with partners and sources across the world—initiating shipment deals being of highest importance.

• Source materials through procurement managers.

Before deals can be closed, supply chain managers work alongside procurement managers to find dependable companies to source their parts from. Doing so creates a network of suppliers that work in tandem to maximize profit. The more product a business sells, the more materials they’ll need, and the more money these suppliers make. Everyone’s happy!

• Negotiate contracts.

Supply chain managers must bring their negotiating skills to the table in order to close contracts beneficial to all parties involved in the movement of commodities and products.

• Forecast product demand and supply chain obstacles.

Supply chain managers are expected to look ahead and predict supply chain trends so their businesses can avoid setbacks. Keeping up with consumer demand is impossible if delays continually shut down operations.

Common Struggles

The supply chain is about as unpredictable as it gets. Things can, and often do, go wrong, which is precisely why it’s a good idea to have someone on board who can navigate these issues.

Here are a few of the issues supply chain managers may deal with on a regular basis:²

1. Lack of Visibility: The inability to track the movement of materials in real-time, without digitalized delays or scarce communication.
2. Material Shortages: High demand slowing the acquisition of rare or difficult resources.
3. Demand Volatility: The unpredictable rising and falling of consumer demand, resulting in product shortages and surpluses.
4. Rising Prices: Operational price hikes hindering the profitability of a product.
5. Cybersecurity Risks: Cyberattacks targeting the supply chain at multiple points and delaying the delivery of commodities and goods.
6. Labor Shortages: A decrease in industry laborers and lack of interest in newer generations.
7. Congestion and Bottlenecks: Inefficient practices lead to congested ports and slower departure times.

These hurdles have been extra high in the past five years. With the pandemic and multiple conflicts raging heavily in varying regions, imports and exports have moved at an inconsistent pace, causing dramatic fluctuations in public supply and demand. It’s exceptionally helpful to have a supply chain manager on board to deal with these problems as they arise.

North Dakota Resources

Impact Dakota’s Supply Chain Optimization and Intelligence Network (SCOIN) is basically a supply chain manager that’s been spread across multiple participating ND companies. Instead of your business hiring an individual, you can utilize this cost-free program that places value on strengthening our state’s supply chain by connecting manufacturers who need one another’s materials.³ There’s really nothing better than empowering fellow North Dakotans through collaboration.

And of course, the NDTO would be more than happy to discuss supply chain optimization as well. Give us a call if you’re curious!

¹What Does a Supply Chain Manager Do? (And How to Become One) | Coursera

²7 Common Supply Chain Problems and How to Resolve Them – Revolutionized

³Impact Dakota – Supply Chain Optimization and Intelligence Network

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ND has witnessed its fair share of trade disputes and obstacles in the past century. Disputes that have shaped how businesses operate, down to the very way in which we grow certain crops or produce alternative fuels.

The following are three trade disputes that have transformed our state’s exports.

1980 Soviet Grain Embargo

Before the fall of the Soviet Union, their anticipated grain consumption in 1979-80 was 231 million metric tons (MMT). The US was to supply 25 MMT of this total, or 11.2%.¹ But at the pinnacle of 1980, then-President Jimmy Carter announced an embargo on all grain exports to the Soviet Union following their invasion of Afghanistan. This was done in an effort to curb their ability to feed their livestock, and in turn, Soviet citizens.

In 1979, North Dakota produced 718,490 metric tons of wheat—our top grain.² This output would solidify our spot in the top ten wheat producers in the US We maintain this impressive feat today, being second only to Kansas.³ Therefore, the grain embargo hit our state especially hard, despite Carter’s best efforts to compensate farmers fairly through price support programs and purchases.¹ Wheat prices plummeted by nine percent in a matter of days, and though they increased in the following months, damage to the world market had already been done. Additionally, the USSR hardly suffered for it, because only a handful of nations followed in the US’s footsteps. Grain was still being exported to the Soviet Union from elsewhere.

Today, many agree that the embargo didn’t do much to deter the USSR. Our state has more than recovered from the short period of stress it caused. Still, the Soviets’ heightened demand for grain during the embargo forever altered trade channels and contributions. Countries that hadn’t influenced grains trade prior to this embargo suddenly became key players—both as importers and exporters.

EU Ban on US Beef

North Dakota is a major beef producer. Ninth in the nation, to be exact.⁴ So when the European Union enacted a ban on “the production and importation of meat derived from animals treated with growth-promoting hormones” in 1989, our exports were greatly affected.⁵ The United States as a whole lost an estimated $100 million annually during the initial years of the ban.

In an effort to make up for these losses, the USDA instated the Non-Hormone Treated Cattle (NHTC) Program.⁵ This program ensures all participating US beef cattle producers raise their herds under set guidelines that work around the EU’s demands. But despite a promising upswing, the US still only accounted for 1-2% of frozen imported beef to the EU in the early 2000s.⁵

This dispute has endured many challenges and reciprocal tariffs over the years. As of 2019, things are looking up. Under a new agreement spanning seven years (ending in 2026), “American ranchers will be guaranteed a bigger share of Europe’s beef market, with annual duty-free exports expected to grow from $150 million to $420 million”.⁶

China’s Soybean Tariffs

Soybeans deeply benefit our state. They’re one of the top agricultural commodities we produce, giving us a solid ranking of nine out of the fifty states.⁷ The US-China trade war of 2018-2020 caused a major shift in our soybean exports.

In 2017, China accounted for “57% of US soybean exports”, totaling $12.22 billion.⁸ Then, they imposed a major 25% tariff on soybean imports. Our country’s production of the plant plummeted by 20 million metric tons (MMT), Brazil claiming our spot as the world’s top soybean grower. North Dakota went from producing 6.62 MMT in 2018⁹ to 4.75 MMT in 2019.¹⁰ A bit of the decline was due to droughts in different parts of the state, but much of it was due to failure to source new importers, which resulted in record losses across the US.⁸

This dispute was resolved in 2020 through a trade deal that had China commit to purchasing $12.5 billion in US agricultural products.⁸ Though our soybean exports have recovered nicely since, farmers won’t soon forget the difficulties this two-year period brought with it. The US did what it could to compensate its farmers and make up for the losses, which is one reason we didn’t fall too far before getting back up.

Trade difficulties have hung over North Dakota businesses like a dark cloud for the better part of the 20^th and 21^st centuries. Fortunately, none have struck us so directly as to cause incurable damage. With the guidance of our local, state, and national governments, we’ve come out on the other side with minimal repercussions and valuable perspectives. If you ever feel your business is suffering at the hands of ongoing trade disputes—of which there are plenty—contact the NDTO for help. It’s what we’re here for!

¹ The Russian Grain Embargo: Dubious Success (stlouisfed.org)

² Agstat-04-23-1980.pdf (cornell.edu)

³ Production Information | ND Wheat Commission

⁴https://www.ndda.nd.gov/sites/www/files/documents/files/2022%20ND%20Ag%20brochure.pdf

⁵ The US-EU Beef Hormone Dispute (congress.gov)

⁶ United States and European Union Sign Breakthrough Agreement on US Beef Access to EU | United States Trade Representative (ustr.gov)

⁷ US Soybean Production by State: Ranking the Top 11 (cropprophet.com)

⁸ Consequences of Chinese tariff and US MFP payments on world soybean‐complex markets – Baryshpolets – 2022 – Journal of the Agricultural and Applied Economics Association – Wiley Online Library

⁹ 2018-NDSC-Annual-Report-WEB.pdf (ndsoybean.org)

¹⁰ 2019NDsoybean012920-1.pdf

The post A History of North Dakota’s Trade Disputes appeared first on North Dakota Trade Office.