The US Foreign and Commercial Service
July 10, 2024
Episode 14: Today, Dr. Omar Ayyash, President and CEO of the World Trade Center Kentucky interviews Mona Musa, Director of US Commercial Service in Louisville, Kentucky. She’s also an active member of the Board of Directors for the WTCKY. They’ll discuss opportunities available for small and medium-size businesses to collaborate with the US Commercial Service to enter and grow in the global trade environment.
Meet Mona Musa
As the Director of the US Commercial Service in Louisville, she and a team of 3 other trade specialists have responsibility for all of Kentucky. Their primary objective is to help small and medium -size businesses to export. Her team works in conjunction with the US embassies and consulates around the world. Mona’s been working in this area for the past 20 years. Prior to assuming the role of Office Director, she was a Senior Trade Specialist.
Current Overview of International Trade in the United States
The US Department of Commerce wants to grow US exports, while looking out for best interests of US businesses. By exporting, companies can diversify their revenue streams, hedge against domestic economic fluctuations and can more sustainably grow their employment bases.
The International Trade Administration is highly engaged on a global basis, with a specific focus on the Indo-Pacific region. It’s a region slated for significant, economic growth over the next 3 decades. There’s also a focus on clean technologies, the digital economies, climate solutions and other industry sections, under this administration.
Post-COVID, the International Trade Administration is focused on economic security. The US economy is performing relatively well compared to many other countries and regions. There’s a focus on local sourcing and supply chain channel security. The goal is to create a sustainable platform for the US economy enabling domestic businesses to grow and to compete internationally.
Resources Available to Small and Medium-Size Businesses
The US Commercial Service works closely with state and local entities. However, it also provides assistance to individual companies. They can help to determine if the company is ready to begin exporting. They are regularly invited to tour domestic companies to discuss objectives and opportunities. The US Commercial Service has access to very detailed market research that can assist a company in its business plan for international trade.
Through its network with in-country representatives, the US Commercial Service can interact directly with people in specific countries to get a better feel for the local, business environment. This feedback can provide valuable insights for a small to medium-size business contemplating market entry.
The US Commercial Service can provide business-to-business matchmaking services. This service connects a domestic company with agents, distributors and representatives located abroad. They can also assist with foreign direct investment opportunities. A significant number of foreign businesses are interested in investing in opportunities in the US. These are usually done either via greenfield or through acquisitions.
The US Commercial Services also collaborates with partners, such as the World Trade Center Kentucky to ensure a company has opportunities to be successful in international trade. They have relationships with Kentucky’s Small Business Development network. They also have a relationship with the Kentucky Cabinet for Economic Development.
Mona encourages companies to reach out with questions or to figure out how best to embark their global trade adventure. At the very least, her team will be able to make connections and referrals to assist them.
The Gold Key Service
This is your key for international markets. Once the export assessment is complete and the company qualifies, target markets can be identified. A call with a Foreign Commercial Service Operation is arranged. These are the teams on the ground in specific markets working out of the US embassies and consulates. They have business contacts and can provide additional services. The company will be invited to participate in a one-to-one business match making event. An agenda will be provided, foreign business candidates will be reviewed and screened, and then the US company will be able to meet with a series of potential international clients. This is a general overview of the US Commercial Service’s Gold Key Service.
The US Commercial Service will also help the company to navigate the regulatory environment, including working through to required documentation for exporting into a specific country.
The fee for this service is extremely reasonable. The fee structure is available in the website. The fee may be reimbursable via the STEP Grant.
The Kentucky STEP Grant
This program can be used to assist a company in pursuing activities related to establishing and pursuing international trade opportunities. Kentucky’s State Trade Expansion Program provides funding for participation in a foreign trade show and other developmental activities. It’s administered under the Kentucky Export Initiative (KEI).
International Trade Challenges for Kentucky Businesses
International competitiveness is an issue when foreign governments are subsidizing their domestic companies. Mona comments on how the US Commercial Service and other agencies are actively identifying ways to help make US products more competitive in markets across the world.
The regulatory environment can be a daunting challenge for any company that tries to go it alone with regard to international trade. Packaging requirements, documentation, quotas and many other factors can present perceived roadblocks for domestic companies. The US Commercial Service can help to navigate the regulations.
International reach is a key factor in engaging with foreign markets. Companies should consider adapting their websites and e-commerce platforms to align with international audiences. The US Commercial Service offers a website globalization review service for $100, as of the recording of this episode. They will analyze your website and provide an assessment of how you can prepare it to perform better, especially in overseas markets.
Predictions for Kentucky Companies Targeting International Markets
Critical and emerging technologies are areas of significant focus, according to Mona. Kentucky is becoming a leader for EV batteries, but don’t forget about the other sectors that feed into this. Semiconductors, software, remote healthcare and telemedicine, as well as agri-business are extremely interesting. Obviously, the AI trend it growing quite quickly.
Equity and Sustainability
The International Trade Administration is focusing on ways to incorporate equity and sustainability into US trade policy and negotiations. There’s also an emphasis on exporting climate-related solutions and digital technologies.
Omar comments on Kentucky’s record year for economic development in 2023. We continue to see significant advances related to innovation via Kentucky businesses. Kentucky’s growth in international trade has also been trending well. In 2022, we exported $32 billion in products and services. In 2023, Kentucky’s international exports grew to $40 billion.
Major Kentucky Exports
Mona reminds us that Kentucky excels in transportation equipment (including automotive and aerospace), pharmaceutical products, in addition to our bourbon and agricultural sectors. Products related to agri-business technology, farm machinery and tools are also significant. The $40 billion in exports from Kentucky places us as the 15th largest exporting state for 2023.
The number of jobs in Kentucky that are related to exports continues to grow. According to a report Mona read, 14.5% of Kentucky’s GDP is related to exporting.
Resources for Kentucky Businesses Interested in International Trade
In 2023, the World Trade Center Kentucky organized a trade mission to Dubai. It will become an anchor trade mission each year, in addition to other markets.
The Department of Commerce develops partnerships with economic development organizations, chambers of commerce, as well as with tradeshow organizers, such as GITEX (which is taking place in Dubai). The Department also actively recruits international buyer delegations to attend domestic trade shows across the US. The objective is to connect them with US companies.
Whether you’re attending a tradeshow in a foreign country or domestically, Mona encourages you to look for the US Commercial Service logo. Representatives will be able to facilitate on-the-fly matchmaking services in their business center, onsite. They can also assist with onsite counseling to assist with exporting efforts.
The US Commercial Service also actively recruits domestic companies who would be interested in attending trade missions to other countries, such as GITEX.
Trade Winds is a program sponsored by the US Commercial Service. It’s a flagship trade mission. The upcoming 2025 Trade Winds Forum will take place in Brazil and Latin America. By bringing a “critical mass” of US companies to an international event, it creates a significant level of interest and interaction, designed specifically to yield opportunities for US businesses in foreign markets.
Gaining direct insights based on actively visiting global markets may provide valuable information to either support or to possibly alter the research your company may have assembled. This practical exercise may offer a reason to pivot from your original plan, in pursuit of something you may not have detected in your research. You only get this by actually being on the ground in a foreign market.
Rural Export Center
Mona explains that the US Commercial Service launched the Rural Export Center in 2024. A trade specialist is exclusively focused on identifying companies in underserved and rural areas in a 6-state region, including Kentucky. This specialist promotes resources and multipliers, such as the World Trade Center Kentucky and other organizations, which can assist companies to consider international trade opportunities for their products. There are market research tools available explicitly developed for rural companies and their specific needs.
Omar comments on how the World Trade Center Kentucky works well with other organizations to benefit Kentucky companies. The International Trade Certification program from the WTCKY involves presenters from a variety of roles who teach participants about various facets of international trade. The Global Executive Forum is another event designed to share perspectives and experience related to global business.
To Contact Mona Musa:
Email: Mona.Musa@Trade.Gov
Website: https://www.trade.gov/louisville-contact-us
Upcoming WTCKY EVENTS:
- 08/22/24 – Trade Chat: EU Calling! (Video Discussion)
- 10/12/24 – Global Trade Mission 2004 – Dubai, UAE
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