Workshop on Trade Workshop on Trade RepresentationRepresentation

Trade Related Technical Assistance for SRE

Peter BennettTrade Development Consultant

Mexico: SRE Introduction 2.

Structure of workshopStructure of workshopWhat this workshop is aboutWhat this workshop is about

1. Managing a TPOExport promotion and FDI

2. Strategic and policy issues• Senior decision makers – influence strategy / policy

3. Contributors• Exporters• Government Policy Makers• Associations

4. ITC’s Manual for Trade Reps5. Actual work of a trade rep6. Question; challenge; disagree; debate7. Flexible

Mexico: SRE Introduction 3.

TerminologyTerminology

• TPO = service SRE -Secretaría de Relaciones Exteriores Proméxico Others

• Trade / commercial diplomacy Bi-lateral trade issues

• Trade Promotion

Mexico: SRE Introduction 4.

Characteristics - 1Characteristics - 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

Mexico: SRE Introduction 5.

Characteristics - 2Characteristics - 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

Mexico: SRE Introduction 6.

A TPO - The variablesA 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

Mexico: SRE Introduction 7.

Settings of variablesSettings 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

Mexico: SRE Introduction 8.

Things go wrongThings 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

Mexico: SRE Introduction 9.

Added difficultyAdded 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

Mexico: SRE Introduction 10.

Successful TPOsSuccessful 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?

Mexico: SRE Introduction 11.

The key to successThe key to success

1. Develop services Effective in meeting the needs of clients To succeed: Consultation with industry must

be very high

2. Deliver these services within a conventional government organisational structure

Mexico: SRE Introduction 12.

Strategic issuesStrategic issues

1. * Who are the clients?Who do you work for?

2. * What markets do you concentrate on?Priority markets?

Where do you put your best people?

3. * What services are you going to provide?How do you design a service?

Easy to do low grade work!

4. How do you measure performance?

5. Work programmes – where do they come from?

Mexico: SRE Introduction 13.

Who are our clients?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.

Mexico: SRE Introduction 14.

What markets?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

Mexico: SRE Introduction 15.

Range of servicesRange of services

1. 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

2. Your capability• Information provider!

• Identifying distribution channels, target customers and buyers for clients

3. Customised in-market information, itineraries and briefings

4. Access to external market expertise and professional service

Mexico: SRE Introduction 16.

Work programmes for a Trade RepWork 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