Small Business Development Center
108 Rockwell Hall
600 Forbes Ave
Pittsburgh, PA 15282-0103
Manager, Global Business Program
Research Assistant, Global Business Program
What is the IMPACT Project?
After winning the Market Development Cooperator Program (MDCP) grant from the U.S. International Trade Administration, U.S. Department of Commerce, Duquesne's SBDC is able to become your company's consulting arm to grow YOUR business in the Pacific Alliance Countries of Latin America. Our goals are to increase U.S. trade with these countries within a 3-year period, sustain economic growth, support American jobs, and strengthen the global competitiveness of U.S. firms, particularly Pennsylvania manufacturers, whose impact on the economy often surpasses that of other industries because of the multiplier effect and higher wages paid to employees.
We will accomplish these goals through a variety of consulting and hands-on trade services including trade missions, trade shows, reverse buyers missions, specialized consulting, market research, etc. The grant lasts from October 1, 2014 to September 30, 2017. During that time, we will work with the U.S. Commercial Service and tap other resources.
Trade Winds Trade Mission to Mexico, Chile and Peru
2016 EXPOMIN Chile: Participating Companies
2015 CONEXPO Chile: Participating Companies
IMPACT in the Media
Looking South for Opportunities: Pages 18-19
What You Need to Know About the Pacific Alliance: Pages 20-21
WHAT ARE THE PACIFIC ALLIANCE COUNTRIES?
The Pacific Alliance was launched in 2011. Chile, Colombia, Perú and Mexico are the founding members. These four countries are the most dynamic in the region, representing more than 40 percent of Latin America’s economy with a market of more than 210 million people—more than one-third of the region’s population. The majority of the population is young, and their combined economies make-up 35 percent of Latin America’s gross domestic product ($1.7 Trillion) and 55 percent the region’s exports, a value of $1.045 trillion since 2010.
WHY TRADE WITH THE PACIFIC ALLIANCE COUNTRIES?
The U.S. has successfully negotiated free trade agreements with each of the countries
o This has eliminated tariffs in at least 80% of products and reduced non-tariff barriers as well.
The U.S. is the top trading partner of the Pacific Alliance countries.
In 2012, the countries continued the trend of surpassing their neighbors in economic growth:
o Peru’s GDP grew by 6.3%, Chile’s by 5.6%, Colombia’s by 4.2% and Mexico’s by 3.8%.
All of these countries are pursuing major infrastructure and construction projects.
They favor U.S. products due to high quality and technological innovation.
These four economies are the most dynamic in the region, representing more than 40 percent of Latin America’s economy with a market of more than 210 million people—more than one-third of the region’s population.
Their combined economies make-up 35 percent of Latin America’s gross domestic product ($1.7 Trillion) and of 55% Latin America’s exports, a value of $1.045 trillion since 2010.
WHAT SERVICES DO WE OFFER?
WHAT INDUSTRIES DO WE TARGET?
WHY DO THE PACIFIC ALLIANCE COUNTRIES BENEFIT THE U.S.?
The U.S. is the main import country for the Pacific Alliance countries. Thirty nine percent of Colombia’s main imports are machinery and transport equipment, the majority of which are for the construction industry. Mexico’s top imports are in the machinery and equipment (50%) and Mining products (13%). Nine percent of Chile’s imports are machinery and parts and Peru’s imports in this sector comprise 6% of the total. Also, the Free Trade Agreements give the U.S. a competitive position. For example, prior to the FTA with Colombia, tariff rates for the infrastructure and Machinery sector was 11.1% and for the building products industry was 12.7%; both (and others) will be 0% upon full implementation.
WHO ARE COMPETITORS TO THE U.S.?
Major competitors in these markets in these countries include Germany, Japan, Italy, and China. Local industries in this sector are not advanced. The high quality, technologically advanced products are needed to accomplish the large scale construction projects underway in each of the countries. Also, the high U.S. percentage of total imports in these industries (68%), indicates that U.S. products are preferred. The U.S. also benefits from the Free Trade Agreements with each country which have opened communications and eliminated most trade barriers.
Steps to Join the IMPACT Project
Market assessment and market research performed by Duquesne University SBDC IMPACT PROJECT.
Introduction to U.S. Embassies Services (U.S. Commercial Service) in the 4 target countries of Mexico, Colombia, Peru and Chile.
-International Partner Search Program: Contact Brent Rondon for more details.
Attend trade mission or trade show organized by the IMPACT Project or we can suggest certain trade shows you should attend according to your industry. Upcoming Trade Show will be in Mexico, Peru and Chile . Sept. 5-13, 2016
Appoint a sales rep in country of interest and set estimated sales amount or projected amount. Inform IMPACT Project about the amounts.
Follow up by Duquesne University Global Business SBDC IMPACT PROJECT to manage sales reps.
Report sales activities quarterly.
*We'd like to thank our partners for making the IMPACT Program Possible:
International Trade Administration
United States Commercial Service
SMC Business Councils
Southwestern Pennsylvania Commission
World Trade Pennsylvania
R.L. Swearer Company, Inc.
Pinilla Plazas & Asociados & Pacto International
Southwest Pennsylvania PREP
Clark Hill Law
Association of Equipment Manufacturers
U.S. Small Business Administration