You searched for CITP - Trade Ready https://www.tradeready.ca/ Blog for International Trade Experts Wed, 23 Oct 2024 20:29:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 33044879 CITP Spotlight: Michael Whitmarsh, MBA – President & CEO, Block 4 Oilfield, LLC https://www.tradeready.ca/2024/topics/citp_spotlight/citp-spotlight-michael-whitmarsh-mba-president-ceo-block-4-oilfield-llc/ https://www.tradeready.ca/2024/topics/citp_spotlight/citp-spotlight-michael-whitmarsh-mba-president-ceo-block-4-oilfield-llc/#respond Wed, 23 Oct 2024 20:29:56 +0000 https://www.tradeready.ca/?p=39940
Earned his elite CITP®|FIBP® designation: August 2024

Michael Whitmarsh has built an impressive career in international trade, with a focus on supply chain management, corporate development, and global expansion. His journey, driven by a passion for business and exploration, illustrates the profound impact that mentors and continual learning experiences can have on a career.

An international career from the beginning

Michael’s career in international trade began at Weatherford International, where he managed U.S.-based purchasing and global logistics across 21 countries. It was the perfect starting point for a young professional fresh out of the University of Houston, where he earned a double major in Economics and Spanish.

“Being born and raised in Houston, the oilfield industry was a natural calling for me,” Michael explains.

His dual expertise in supply chain and international relations helped him transition into the global scene.

From the outset, Michael’s work exposed him to the complexities of international business, allowing him to combine his love for travel with his skills for business development.

“Once I started doing business across borders, I developed a passion for international trade.”

He continued to gain experience with Holloway, an NOV distributor, where his exposure to global markets solidified his passion and set him on the path to become a leader in the oilfield industry.

Leading Block 4 Oilfield, LLC

Today, Michael leads Block 4 Oilfield, LLC, one of the fastest-growing oilfield companies, with operations in the U.S., South America, and the Middle East. Under his leadership, the company has expanded through strategic sales, acquisitions, and entry into international markets.

“I’ve spearheaded the growth from day one through my understanding of international markets, business development, sales, and marketing.”

His dual expertise in supply chain management and corporate development has allowed him to navigate the complexities of global trade and strategically grow Block 4 Oilfield.

“My career has been two-pronged. My first ten years focused on supply chain, purchasing, and logistics, while the second half has been corporate development, setting up distributors, and entering different markets,” Michael said.

This unique combination of skills has made him an effective leader, capable of taking his company into new and challenging regions around the globe.

The Role of FITTskills and the CITP designation in his growth

For Michael, the FITTskills program and the CITP designation provided the formal education and credentials necessary to elevate his career in international trade. His decision to pursue the FITTskills courses stemmed from his interactions with Canada’s Trade Commissioner Service (TCS) and Export Development Canada (EDC), two organizations that played a pivotal role in his understanding of international business. Michael explains,

“I knew that FITT, being associated with EDC, was an outstanding organization to seek training and obtain certification from.”

Michael found the FITTskills courses particularly valuable in areas where he needed to strengthen his expertise, such as trade finance. “Finance was the side of trade where I was weaker before the training,” he admitted, but the courses helped him “add a lot of skills to [his] belt.”

His favorite course, Feasibility of International Trade, gave him a deeper understanding of the risks and benefits of entering new markets.

“It provided useful tools in risk analysis and risk management, tools that I use on a daily basis in my position.”

His CITP designation, which he earned through the FITTskills program, also helped Michael distinguish himself as a global trade expert. “I’m extremely proud to have the CITP designation and to present myself as an expert in international trade,” Michael said.

The credential not only proves his expertise but also connects him to a network of professionals who share his dedication to ethical business practices and ongoing professional development.

A world of lessons through global experiences

Michael’s career has taken him to over 20 countries, providing him with rich cultural experiences and an understanding of how different regions approach international trade. He shared some of his favorite stories, such as working in the Middle East, where relationship-building is paramount before discussing business.

“In Abu Dhabi, we would talk about families and personal experiences over tea or eat Mandi on the floor in a traditional manner before business even came up,” Michael recounted. This cultural insight helped him adapt to various regions and avoid the pitfalls of international etiquette.

His experiences in Latin America, Singapore, and the Middle East have taught him to “do as the Romans do” — to adapt to local customs and respect cultural differences. “You’ll pick up on things really quickly,” Michael advised.

He stressed the importance of researching local customs and relying on networks like expat communities or experienced colleagues for guidance when entering new markets.

Inspirational mentorship from an industry leader

A key influence in Michael Whitmarsh’s career has been his mentor, John Samuels III, a legendary figure in the energy and commodities trading industries. Michael met John during his time in the Middle East, and they collaborated on several projects, including commodity trading deals between the U.S. and the Middle East, as well as launching an oilfield rental company in Sharjah, UAE.

John’s incredible career trajectory—starting from humble beginnings in Galveston, Texas, to building a corporate empire with diverse holdings—served as a powerful inspiration to Michael.

John’s vast knowledge of business, his grace under pressure, and his ability to intertwine personal life with professional success left a lasting impression.

“What really impressed me with him is that he has all this knowledge, all this personal life experience… he’s probably the most interesting man in the world.”

John, often referred to as “The Great Gatsby” due to his larger-than-life persona, had a profound understanding of commodity trading and global markets, especially through his role in helping to launch the Dubai Gold and Commodities Exchange.

For Michael, learning from someone with such a rich blend of business acumen and personal integrity was invaluable.

“He handled everything with such grace… despite all of his accomplishments, he was still so humble,” Michael said.

This mentorship not only shaped Michael’s approach to business but also deepened his passion for international trade and global markets.

Among his many accomplishments, Michael is particularly proud of establishing the first international distribution hub as an NOV distributor in Dubai.

“I performed all the market intelligence prior to entering the market, found the lowest-cost ports, staffed the company, and adapted the policies to local cultural and legal requirements.”

This project not only positioned his company as a master stocking distributor for the Eastern Hemisphere but also highlighted his strategic expertise in global business development.

Michael also sites his work with the Canadian Trade Commissioner’s office and EDC as motivating factors in his career development. These organizations helped him navigate international markets, meet high-profile players, and secure contracts with drilling contractors in regions like Argentina and Cuba.

Michael’s experience working with these agencies further cemented his passion for international trade and gave him a profound respect for the role government organizations can play in supporting businesses.

Looking to the future

Michael believes his CITP designation will continue to play a pivotal role in his future career.

“The CITP designation will open many doors to opportunities that I may not have otherwise been offered.”

As he continues to grow Block 4 Oilfield and explore new global markets, Michael remains committed to leveraging his expertise and credentials to drive success. Whether it’s through acquisitions, mergers, or strategic partnerships, his future looks bright, fueled by the knowledge and tools he’s gained through the FITTskills program and the CITP designation.

CITP Banner image - business woman on a call

Want to learn more about the Certified International Trade Professional (CITP®|FIBP®) designation? See why it’s the world’s most recognized designation for competency and credibility in global business.

Adding credibility to experience and expertise with the CITP designation

For those considering taking their business into an international market, Michael has one key piece of advice:

“Understand the tools related to international trade finance. From Letters of Credit to Export Credit Agencies, each tool is extremely helpful to hedge a growth strategy and to best position oneself in a given market.”

With his deep experience, global perspective, and the CITP designation, Michael Whitmarsh is not just a leader in the oilfield industry — he’s a prime example of how education and professional certification can propel a career to international heights.

Want to connect with Michael? LinkedIn: Michael Whitmarsh

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CITP Spotlight: Meetali Kashyap – Market Advisor, Enterprise Ireland https://www.tradeready.ca/2024/topics/citp_spotlight/citp-spotlight-meetali-kashyap-market-advisor-enterprise-ireland/ https://www.tradeready.ca/2024/topics/citp_spotlight/citp-spotlight-meetali-kashyap-market-advisor-enterprise-ireland/#respond Tue, 17 Sep 2024 14:51:17 +0000 https://www.tradeready.ca/?p=39873
Earned her CITP®|FIBP® designation: August 2024

Meetali’s career in international trade began in 2015 when she transitioned from a global consulting firm in the private sector to the UK’s Department for Business and Trade in the public sector. In this role, she assisted British companies to enter and expand their operations in India, focusing on sectors like Financial Services and Energy.

“It was a complete shift from the private sector to an exciting world of international trade, export promotion, and market development where I generated businesses opportunities for British companies. I provided strategic advice and executed sector-specific trade promotion initiatives to help clients access opportunities, establish strategic alliances in the market, and grow their business in India.”

Meetali shares an example of her success: she helped a single-brand retailer get their FDI application approved to enter the Indian market, set up their brick-and-mortar stores, and sell their products. Over the next few years, the company invested more capital, generated strong sales revenue, created jobs, and went on to become a popular brand.

“I reflect on the role I played when I see their popularity in India. Over time, they established themselves as leaders in their product segment.”

“One of my proudest professional accomplishments was to contribute to this business’ journey in the initial phase and witness their growth trajectory.”

Contributing to UK-India trade relations post-Brexit

Meetali at the British High Commission in New Delhi
Meetali at the British High Commission in New Delhi

The 2016 Brexit marked a significant turning point for the UK and its trading partners. This transition necessitated a fresh approach to trade policies and agreements with countries like India. Meetali found new opportunities to leverage her expertise in the evolving landscape and progressed in her role, moving into market access and trade policy and working on government-to-government dialogues to champion equitable conditions for British businesses in India.

“I undertook policy advocacy work, engaged closely with the Government of India on behalf of the British government to advance the market access agenda for British companies. I worked as a core member of the policy team to create a level playing field for British businesses operating in the Indian market and resolved specific barriers related to ‘ease of doing business’ during my tenure.”

During that period, the UK began developing its independent trade policy with various countries, including India, which required extensive groundwork. This helped Meetali gain valuable experience and a deep understanding of the markets and governmental functions in both India and the UK.

Eager to expand her knowledge, Meetali chose to continue her work with other foreign governments, bringing her unique perspective to new challenges and building a career in the international trade arena. 

Helping Canadian businesses expand in global markets

In 2022, she joined the Trade Commissioner Service with Global Affairs Canada, leading the infrastructure sector. In this role, she helped Canadian companies do business in India and was one of the youngest trade commissioners in Global Affairs Canada’s overseas network.

“I helped clients prepare for the overseas market. Factors such as competitor intelligence, regulatory compliance, market knowledge, and understanding customer preferences were crucial. In certain sectors, the sales cycle can be long and requires commitment and perseverance from business owners.”

“Clients should be prepared to invest time in understanding the opportunity landscape, establishing strong partnerships, and building a strong network. Success does not come overnight.”

Shifting markets, same client focus

Meetali with Team Canada at the Enterprise Ireland, Toronto office
Meetali with Team Canada at the Enterprise Ireland, Toronto office

While working with the Canadian Trade Commissioner Service from the New Delhi office, Meetali was inspired to make her biggest move yet and immigrate to Canada.

In 2023, Meetali settled in Toronto, Canada, where she found an excellent opportunity to tap into her skills as Market Advisor – Digital Tech for Enterprise Ireland, the Irish Government agency responsible for supporting Irish businesses in global markets. In this role, she leads the digital technologies portfolio of clients in the cyber security and digital entertainment sectors in Canada, helping Irish innovators find meaningful partnerships with Canadian organizations.

Recently, Meetali attended the Toronto International Film Festival (TIFF) to support an Irish client company in her portfolio. Later this month she will lead a delegation of Irish animation companies for a market study visit to Canada promoting co-production opportunities between Canadian and Irish studios developing their own IP.

Throughout her career, Meetali has found that keeping client interests as the primary focus is crucial in international trade. This might seem like straightforward good business sense, but it can be more challenging than it appears. Meetali explains how she applies this philosophy in her current role with Enterprise Ireland.

“I believe the essence of an international trade advisor’s role is to provide bespoke advice to clients keeping their best interest and potential success in mind.”

“For instance, Canada often serves as a cost-effective gateway into the North American market, offering ample opportunities to introduce new innovations. This environment helps companies gain a technical edge in a rapidly evolving world.”

Professional development and well-earned validation of expertise

Meetali’s keen interest in market entry strategy and the various options available to companies looking at international expansion is evident in her career. As she progressed through the six courses in the FITTskills program, she particularly enjoyed the International Market Entry Strategies course.

“My favourite course was International Market Entry Strategies. It was designed in a way that was very engaging. The structure of the course modules and sub-topics was quite interesting. Discussing different routes to market, types of investments, or options like greenfield or brownfield, direct or indirect channels, joint ventures, mergers, or acquisitions, has enhanced my ability to provide strategic advice to our Irish companies weighing their options in market entry.”

“I have applied the concepts I learned [in the International Market Entry Strategies course] in my practical day-to-day job, which is why I find them so relevant and interesting.”

Upon successfully completing the FITTskills program and earning her FITT Diploma in International Trade, Meetali was encouraged to validate her professional development by applying for the Certified International Trade Professional (CITP) designation.

Learn more about the CITP®|FIBP® designation

INTERNATIONAL BUSINESS CERTIFICATION—CITP®|FIBP®

Advance your career and build your professional credibility in the field of global business by earning the Certified International Trade Professional (CITP) designation.

Why Earn the Certified International Trade Professional (CITP) Designation?

The Certified International Trade Professional (CITP) designation is the world’s leading professional designation for the field of international business. So whether you’re new to global trade or have over a decade of direct experience, the CITP designation can help advance your career and build your professional credibility.

The CITP designation sets you apart in the competitive international business industry because it’s proof you possess the competencies global business experts have identified as being essential for a successful career in international trade. It also recognizes your dedication to ethical business practices and ongoing professional development—both of which are desirable traits for today’s global business practitioners.

*Certified International Trade Professional (CITP) is trademarked for use within Canada. FITT International Business Professional (FIBP) is trademarked for use internationally. Both reflect the same FITT-certified designation. 

Click here to take the next steps to your CITP designation

Looking forward, Meetali wants to continue to grow her knowledge of the Canadian market and help her international clients find success there through her guidance and strategic advice on the opportunities available in that market.

From the very start, Meetali Kashyap has brought her intelligence and capacity to learn and grow in new markets into her work. In this she has met with resounding success, both in her personal professional advancement and for her clients and their businesses. We are proud to welcome her to the CITP community.

“I value the industry-wide recognition the designation offers, which will enhance my career progression opportunities. Earning the CITP has established that I am an experienced international trade professional.”

Want to connect with Meetali?

LinkedIn: Meetali Kashyap

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Digital Credentials: How digital badges can impact your international trade career https://www.tradeready.ca/2024/featured-stories/digital-credentials-how-digital-badges-can-impact-your-international-trade-career/ https://www.tradeready.ca/2024/featured-stories/digital-credentials-how-digital-badges-can-impact-your-international-trade-career/#respond Sat, 24 Aug 2024 15:45:42 +0000 https://www.tradeready.ca/?p=37858 Digital badges floating around a circle on maroon background

Never before have their been more tools and options for those applying for a job – or finding job candidates. But as employers and potential employees connect easily over the internet, the hiring process can be difficult from both ends.

Job candidates can have a hard time standing out among a seemingly endless pool. Hiring managers can have a hard time weeding through countless applications to determine who would truly be the best fit for the company.

The ever-evolving hybrid/return to office/remote environment has created additional challenges for both employees and employers. Plus, especially in the field of international trade, disruptions to supply chains and other aspects of business have required companies to be agile and responsive.

For many businesses, that has brought the need for new skillsets or areas of expertise from employees. As businesses look to fill those needs internally and externally, professionals in international trade have needed to acquire or market their skills for the changing business landscape.

That’s where digital credentialing comes in. More and more, professionals are seeking out training that will grow their skills while demonstrating their proficiencies to potential employers.

Digital badges, offered by companies such as Credly, are another way to recognize professionals that have met educational or professional experience benchmarks. Digital badges are easily shareable by job candidates and simple to verify for potential employers.

Standing out from the crowd: Digital badging credentials for professionals

By now, most people are familiar with the disconnect in employment: Professionals often lament how hard it is to find a job, while businesses claim they have plenty of openings but lack qualified candidates. Many experts say this disconnect comes from the so-called “skills gap”.

Up to 80% of employers say young professionals lack the skills and experience they need to succeed in the workplace.

This skills gap can be especially pronounced in fields such as international business and trade. Professionals in the field know that there are many areas of specialization, and college courses often offer a broader understanding of the field as a whole.

More targeted digital badges can also help trade professionals better communicate the scope of their education and skills with potential employers.

Taking the time to earn and share digital badges can pay off for professionals at any stage of their career.

One recent survey of 400,000 people worldwide found that 76 percent of professionals who earned a new certification saw a salary increase or promotion.

FITT has seen this play out with its own CITP certification: According to a FITT CITP salary survey, CITP®|FIBP®s in Canada on average earn CAD $52,000 more than the median salary.

Building the right team: The benefits of digital badging credentials for businesses

From hiring to retaining staff, digital badges also provides a major benefit to businesses. Businesses are increasingly moving to skills-based hiring. Rather than looking for educational or experience-based pre-requisites that a broad range of candidates might meet, companies are searching for a specific set of skills that will meet the company’s operational need or growth goals.

Digital badges allow hiring managers to quickly see how a candidate fits the company’s needs and to see what special skills the employee brings that  fill knowledge or skill gaps within the company.

Digital badges can also add an objectivity to the hiring process by allowing hiring managers to easily compare candidates’ education and experience.

“Employers must hire qualified personnel in any discipline to ensure that they get the most value from their employees. Hiring certified employees allows companies to get their employees working in what’s important faster,” said Emiliano Introcaso, CITP, Knowledge Product Manager for Export Development Canada and supply chain management professor at Sheridan and Seneca colleges.

In addition to signaling key skills to employers, digital badges also communicate something important about the type of employee the candidate will be. Professional certifications generally indicate that a candidate is willing to learn and grow their skills. That growth mindset can pay off for companies as they continue to grow and adapt to new markets and new market developments.

Connecting employees to skills-building opportunities allow companies to develop their existing talent to meet their future needs. Not only does that benefit the company, but it allows employees to grow with the company.

This can help with retention because employees can continue to advance their careers, and educational opportunities are often seen as a major benefit to motivated employees.

Once those employees have developed additional skills, they add value to the company and reduce costs by building those skill sets in-house, removing the need to bring in additional employees or find outside expertise.

“Bottom line – in-house experts’ salaries are less costly than third-party consultants. Then, in-house experts train internal employees to at least level up,” said Audrey Ross, CITP, Import & Export Compliance Manager at Orchard Custom Beauty.

“The more people thinking globally, the better growth you will have.”

Statistics demonstrate the value of investing in upskilling employees for business. Companies that invest $1,500 or more annually per employee for professional development report an average of 24%higher profit margins than companies who don’t make the investment.

Digital badging credentials for international trade

FITT has long met the demand for professional education and credentialing in international trade, to help employees and employers develop the key skills needed to expand to new markets and adapt to the ever-changing international business climate.

To date, more than 37,000 professionals around the globe have taken advantage of FITT’s professional training and/or earned FITT credentials.

To keep up with the changing demands of the increasingly digital employment environment, FITT is offering digital badges that can be easily shared by international trade professionals and verified by the companies looking to hire those with specific skills in international business.

FITT’s digital badges will serve as a digital representation of meeting the requirements of FITT’s training, certificate, diploma and CITP designation.

Disclaimer: The opinions expressed in this article are those of the contributing author, and do not necessarily reflect those of the Forum for International Trade Training.

 

 

 

 

 

 

 

 

 

 

 

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Food & Drink: Use this framework to define your current value proposition before you go global https://www.tradeready.ca/2024/featured-stories/food-drink-use-this-framework-to-define-your-current-value-proposition-before-you-go-global/ https://www.tradeready.ca/2024/featured-stories/food-drink-use-this-framework-to-define-your-current-value-proposition-before-you-go-global/#respond Wed, 07 Aug 2024 17:20:32 +0000 https://www.tradeready.ca/?p=39803 When expanding a brand into a new international market, having a unique value proposition is essential. It is the defining factor that sets your brand apart from competitors and captures the attention of a new target audience.

Without a unique value proposition, your brand risks becoming just another brand in the aisle. That’s why building a unique value proposition is critical when you pioneer to a new market!

I found that having a structured framework to evaluate your market readiness can help you build and validate your value proposition.

Based upon Alexander Osterwalder and Peter Thomson’s work, I created a new framework more adapted to the food and drink industry which I think will help you develop your value proposition for any new markets.

This adapted framework comprises two main sections: Home Market Benchmark and Target Market Evaluation.

In this article I will explain the first section with more detail: Home Market Benchmark regarding the Current Value Proposition.

Home Market Benchmark – Current Value Proposition

Many in this industry initially try to sell the same products in new markets using the same arguments. However, the value proposition will be evaluated differently by consumers in a new target market. Nevertheless, it serves as a starting point.

This “Current Value Proposition Canvas” is divided into two parts: Your Product and the Consumer Insights based on your target audience in your home market.

Typically, your home market is where you have your strongest brand positioning and where you know the most about your consumers.

This intimate knowledge forms the basis for adapting your value proposition to a new market.

graphic showing the relationship between the product, consumer insights, target market that make up current value proposition

Product

Starting with your product, you need to answer three questions:

  1. Benefits – What are the emotional attributes of your product that make your consumers’ lives better in your home market?

General emotional attributes for food and drink brands include:

  • Brand Recognition: Confidence and pride in choosing a well-known and respected brand. These brands are often seen as a reference for quality or innovation within the category.
  • Reliability and Trust: Security in consistent quality and safety standards. A brand that delivers on its promises.
  • Celebration and Social Connection: Joy and uplift during special occasions with family or friends. Facilitates social interactions and creates a sense of community.
  • Culture and National Pride: Pride in consuming products that celebrate cultural and national heritage. Emotional satisfaction from authentic products reflecting genuine practices.
  • Nostalgia and Comfort: Bring fond memories and comfort from past experiences. Connection to cultural or familial traditions through food and drink.
  • Satisfaction and Delight: Joy from consuming delicious and flavourful products. Pleasure in discovering new tastes and different cuisines from other parts of the world.
  • Luxury and Indulgence: Pleasure from indulging in premium, high-quality products. Satisfaction from treating oneself as a reward.
  • Health and Wellbeing: Enhanced health and energy from nutritious products. Comfort in making health-prioritized choices.
  • Environmental Responsibility: Pride and satisfaction from supporting brands with sustainable practices, such as eco-friendly packaging and ethical sourcing.
  1. Features – What are the functional attributes of your product in your home market?

General functional attributes for food and drink brands include:

  • Taste and Flavour: The sensory experience, including taste, aroma, and mouthfeel.
  • Nutritional Value: Health benefits like vitamins, minerals, protein, fibre, and essential nutrients.
  • Convenience and Ease of Use: Ease of preparation and consumption.
  • Quality and Freshness: Overall quality, including ingredients, manufacturing process, and freshness.
  • Packaging: Design, functionality, and sustainability of the packaging.
  • Price Positioning: Cost relative to perceived value and competitive landscape.
  • Dietary Compliance: Suitability for specific dietary needs, such as gluten-free, vegan, or allergen-free.
  • Shelf Life and Storage: Duration of freshness and safe consumption, and storage conditions.
  • Sustainability and Ethical Sourcing: Environmental and ethical considerations in production, packaging, and distribution.
  • Safety and Compliance: Adherence to safety standards and regulations, ensuring the product is free from harmful substances.
  1. Consumption Experience – How does the experience of consuming your product make the consumer feel (consumer statement)?

When considering how the experience of consuming your product makes the consumer feel, it’s important to recognize that different types of target audiences may relate to your brand in unique ways.

By creating multiple personas, you can tailor consumer statements to reflect diverse emotional connections each segment may have.

This approach ensures your product resonates deeply with a wider range of consumers, enhancing overall brand connection.

Examples include:

  • High-Protein Yogurt: “I feel strong and nourished after my workout, thanks to the high-protein content that helps me recover and build muscle without compromising on taste.”
  • Fair-Trade Coffee: “I feel ethically responsible and connected to the global community, knowing my morning coffee supports fair trade practices and the wellbeing of farmers.”
  • Classic Breakfast Cereal: “I feel nostalgic and comforted every morning when I enjoy a bowl of this classic cereal. It takes me back to my childhood, reminding me of carefree mornings and family breakfasts.”

Consumer Insights

Going next to the Consumer Insights, you will also need to answer three questions:

  1. Desires – What are the emotional drivers that the consumer wants to be, do, or have?

  • Status and Prestige: Products that elevate social status and reflect success, often premium or luxury goods.
  • Indulgence and Pleasure: Products that provide enjoyment and sensory delight, often serving as treats or rewards.
  • Health and Wellness: Motivation to improve health and maintain a balanced lifestyle.
  • Convenience and Time Saving: Products that save time and effort, are easy to use, quick to prepare, or portable.
  • Social and Cultural Identity: Products that resonate with cultural background or social identity, reinforcing a sense of belonging.
  • Innovation and Novelty: Unique products that stand out and expand the palate, challenging and exciting consumers
  1. Need States – What are the rational drivers that the consumer needs to get done?

  • Basic Nutrition: Essential nutrients to maintain health and wellness.
  • Compliance with Dietary Restrictions: Catering to specific dietary needs or restrictions.
  • Safety and Quality: Assurance that products are safe to consume and of high quality.
  • Affordability: Good value for money, competitively priced without compromising on quality.
  • Availability and Accessibility: Easily accessible and consistently available in preferred shopping channels.
  • Sustainability: Products produced sustainably, with minimal environmental impact and ethical sourcing practices.
  1. Concerns – What are the Fears, doubts, and anxieties, a consumer might have while consuming your product?

  • Healthy Ingredients: Concerns about the ingredients used in goods.
  • Quality and Freshness: Concerns over the freshness and quality, especially for perishable or processed goods.
  • Value for Money: Anxiety about not getting their money’s worth, seeking assurance that the product delivers on its promises.
  • Regulatory Compliance: Concerns that products may not comply with local regulations, affecting safety and legality.
  • Brand Trust and Authenticity: Doubts about the authenticity of brands, especially those making bold health claims or from unfamiliar sources.
  • Cultural and Ethical Misalignment: Worries that products may not align with cultural practices or ethical values.
  • Availability: Fear that preferred products may not always be available, leading to the need to find alternatives.

I will continue to develop the next subsections of the Home Market Benchmark of my Value Proposition Framework for the Food and Drink Industry newsletter. Check it out and subscribe on LinkedIn for more of my insights on the food & drink export business.

Disclaimer: The opinions expressed in this article are those of the contributing author, and do not necessarily reflect those of the Forum for International Trade Training.
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CITP Spotlight: Leah Sanford – Principal & Co-Owner, Kelford Inc. https://www.tradeready.ca/2024/topics/citp_spotlight/citp-spotlight-leah-sanford-principal-co-owner-kelford-inc/ https://www.tradeready.ca/2024/topics/citp_spotlight/citp-spotlight-leah-sanford-principal-co-owner-kelford-inc/#respond Wed, 08 May 2024 19:27:37 +0000 https://www.tradeready.ca/?p=39566
Earned her CITP®|FIBP® designation: September, 2022

Leah Sanford has a long-time passion for marketing. She enjoyed her corporate marketing role before taking the leap into entrepreneurship. She now helps other entrepreneurs take their brands global.

Her husband, Joel Kelly, shared Leah’s passion for marketing. He dreamed of starting his own business, and together, they built Kelford, Inc.

Through their company, Leah and Joel work with entrepreneurs to help define and articulate their unique value, and then demonstrate it to their very best customers. She finds joy in helping entrepreneurs from Canada and beyond change the world by helping them communicate in a way the world understands.

“An entrepreneur just has this creative mindset of seeing past the obstacles and wanting to try new things. There’s this creative, innovative space that just clicks a little different for an entrepreneur, and it’s so fun to work with.”

Leah strives to infuse fun and creativity into the process of helping entrepreneurs uncover their goals, define their value, and demonstrate it at a distance. So they can keep going, keep growing, and keep building a business they love.

If a business is online, it’s potentially international

Based in Canada, Kelford Inc. is both a local and an international business, thanks to the ease of connecting online.

“We often work with folks who are located here in Canada but sell around the world,” Leah explained.

“We’ve had many clients around the world trying to enter Canadian markets or other global markets. For us, it’s all about demonstrating your value, globally.”

Whether a business owner offers professional services, or artisan-made products via e-commerce, or deep-tech solutions, they may benefit from global trade training.

“Shopify changed the game, and Amazon before that. And Etsy has been this beautiful creator space on a smaller, more personal, artistic scale of what’s possible. It doesn’t have to be down the street anymore. The pandemic really opened that up from on a global corporate scale.”

Leah developed a more global approach from the Certified International Trade Professional (CITP) designation and international business training through the FITTskills program.

CITP Banner image - business woman on a call

A resource that helps open doors

“I would absolutely recommend the FITTskills program to people who love long-term learning. The program is comprehensive – so in the long term, everything stacks really nicely.”

When the world slowed down during the COVID-19 pandemic, Leah decided to invest time into professional development. Invest Nova Scotia offers training and other resources for entrepreneurs including FITTskills training as a FITT educational partner. Leah took advantage of the opportunity and enrolled in the FITTskills International Sales & Marketing course.

“It felt like this little serendipitous moment that kicked me off on the right journey.”

That moment led Leah toward earning the CITP certification. She found the designation and the FITTskills program incredibly practical and easy to apply to real-world situations. In addition to knowledge, it also helped hone her mindset.

“It’s been a confidence boost. It obliterates that imposter syndrome feeling! It’s a great anchoring ground of knowing what I’m doing. I have the FITTskills textbooks to go back to. I have the knowledge base to go back to. I have the resources to draw on, and the connections that it’s opened up have been brilliant.

The program also offers moments of connection and the chance to network with other professionals and expand valuable international connections. Leah even found a new client who was a classmate in the same FITTskills course. She indicated that when looking for partners, the CITP designation acts as a green flag.


“I know that there’s been a vetting process in that credential. It’s a credential that has a governing body and there’s something really beneficial to that. When you’re evaluating apples to apples, this one suddenly is a little more nutritious.”

Paying it forward and building up other entrepreneurs

Leah jumped at the opportunity to help other aspiring entrepreneurs through the Lab2Market program. This federally backed, multi-agency partnership encourages master’s, doctoral, and postdoctoral-level researchers to gain tools that may help them take their expertise and innovations to the marketplace. Leah is a facilitator in the Lab2Market Oceans programs, through Memorial University.

“We’re focused on ocean innovation and technology. Students are bringing forward ideas and products such as oil spill clean up breakthroughs, improved safe navigation through icy waters tools, new marine coatings, etc. The program is comprised of brilliant students, many international, exploring how they might enter a global market—seeing if there’s a market for their idea. And we educate, and hopefully inspire, them to build businesses and take their innovations forward, while supporting them as they go through the roller coaster of emotions in customer discovery!”

Leah credits both completing the FITTskills training and earning the CITP designation for preparing her to help these scientists develop business skills and entrepreneurial mindsets.

Whether local or global, it’s all about relationships

Leah found that her relationships with clients don’t end with the initial project developing a marketing position and strategy. She likes to keep in touch with clients as they implement their strategy. Kelford also offers a daily inspirational positioning newsletter.


“For us, it’s natural to stay in touch and celebrate their wins. And on the flip side ask, are you struggling with anything? Just let them know we’re here.”

Over the years, Leah and Joel worked with dream clients including Big Cove Foods of Nova Scotia. They came to Kelford with a goal of bringing their spice blends from a local product to stores across the country. After exploring their goals and aspirations, Kelford helped them create an actionable marketing strategy.

As they implemented the plan, they found their voice and fun in their marketing, and were able to focus on demonstrating their value to their best customers. And with that focus, they saw pick up from stores across the country as well as growth in their online sales. As they’ve grown, their social impact has grown too—participating in ‘1% for the Planet’ where they donate to charities, and  prepare fresh meals and munchies to Viola’s Place, a homeless shelter in their community.

She sums up her ideal client as, “the entrepreneur who has an ambition that speaks to their soul, has a product or service that can do good out in the world. And then is really crafty, creative, and wants to do something more than for the hustle, more than for the dollars, but something they want to stick with for a really long time because it makes them happy. And that happiness makes their customers happy. That’s the dream.”

“When you go out somewhere to sell your product, it’s not over when you make the sale. Now we have to prove that we’re going to stick around, that we backup our product and our commitments, that we are here with the customer service.”

Looking toward the future in a changing world

Adaptability is crucial for entrepreneurs in an ever-changing market. Leah appreciates having the course text, case studies, and videos available as reference resources whenever new challenges and opportunities arise.

“So, what you knew and what you did two years ago is different now. What I would have recommended two years ago is different now. A marketing strategy I write this year is going to be different from the one I write in a year from now because of how the market changes.”

Leah envisions a future where Kelford, Inc. further expands its portfolio of client collaborations from all over the world. The choices when selling globally can be overwhelming. The knowledge and resources gained through the FITTskills program and validated through earning the CITP designation provide building blocks for success.

“My experience working toward and earning the CITP has been wonderful in terms of knowing “how can we leverage our skills, the tools that we know are out there?” It’ll always be just the two of us, but how do we grow that impact that we’re able to have? And we are really looking at that on an international scale now.”

Want to connect with Leah? LinkedIn: Leah Sanford

Learn more about the CITP®|FIBP® designation

INTERNATIONAL BUSINESS CERTIFICATION—CITP®|FIBP®

Advance your career and build your professional credibility in the field of global business by earning the Certified International Trade Professional (CITP) designation.

Why Earn the Certified International Trade Professional (CITP) Designation?

The Certified International Trade Professional (CITP) designation is the world’s leading professional designation for the field of international business. So whether you’re new to global trade or have over a decade of direct experience, you’ll find the CITP designation can help advance your career and build your professional credibility.

The CITP designation sets you apart in the competitive international business industry because it’s proof you possess the competencies global business experts have identified as being essential for a successful career in international trade. It also recognizes your dedication to ethical business practices and ongoing professional development—both of which are desirable traits for today’s global business practitioners.

*Certified International Trade Professional (CITP) is trademarked for use within Canada. FITT International Business Professional (FIBP) is trademarked for use internationally. Both reflect the same FITT-certified designation. 

 

Click here to take the next steps to your CITP designation

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Simplifying International Trade with Single Windows https://www.tradeready.ca/2024/featured-stories/simplifying-international-trade-with-single-windows/ https://www.tradeready.ca/2024/featured-stories/simplifying-international-trade-with-single-windows/#respond Wed, 01 May 2024 16:00:36 +0000 https://www.tradeready.ca/?p=39543 Trade-enabling technology – TradeTech – makes international commerce more efficient, inclusive, and sustainable.

In this three-part series, digital trade expert Craig Atkinson, CITP addresses key questions and practical considerations related to technology-enabled cross-border interaction among buyers, sellers, intermediaries, and governments. Article based on an interview by FITT’s Pamela Hyatt.

Craig Atkinson, CITP Headshot

Craig Atkinson is the Founder and Director of Lexmerca International Trade and a Trade Development Specialist with the International Trade Centre (ITC), the joint agency of the United Nations (UN) and the World Trade Organization (WTO). His roles focus on addressing legal-technical challenges that affect global trade.

Active in the field of digital trade, Craig participates in the World Economic Forum’s TradeTech community and in projects with multiple international organizations, academic institutions, technology foundations, and standards bodies.

Academically, he is a Non-Resident Fellow with the World Trade Institute (WTI) as well as a Research Affiliate with the Singapore Management University (SMU) Centre for AI and Data Governance and the SMU Centre for Computational Law. Professionally, Craig has been a FITT Certified International Trade Professional (CITP) since 2011.

What is a ‘Single Window’ for trade regulation?

In the first article in this series, ‘Single Windows’ were described as exemplifying the digitalization of goods trade. Aside from being known as the most impactful class of ‘TradeTech’, what is a Single Window?

The answer is found in the ambitions of ‘digital trade facilitation’: government measures to simplify, harmonize, and modernize trade formalities and procedures to allow for cross-border paperless exchange between actors in international supply chains.

According to United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Recommendation 33, a Single Window (SW) is a ‘facility’ that “allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements”.

An electronic SW environment links government bodies – Customs and other government agencies (OGAs) like ministries of health, agriculture, and finance – for online application, issuance, and exchange of trade-related permits/certificates.

Private stakeholders include traders, agents, customs brokers, carriers, forwarders, ports, freight terminals, and commercial banks. As documents (or data) is in electronic form, they only require ‘single’ submission and leading systems utilize ‘rules engines’ for compliance automation.

While Singapore is credited with deploying the first SW in 1989 – TradeNet for Business-to-Government (B2G) exchange and the more recent Networked Trade Platform (NTP) extension to facilitate Business-to-Business (B2B) transactions – other countries have implemented projects for paperless trade via Single Window.

Source: Singapore Customs (2024)

Note: Singapore is not a typical case. Above, ‘Trade Permit’ is used for Customs declarations. Yet, if goods require permits from other OGAs when submitting a ‘Trade Permit Application’ to TradeNet, the application is a ‘single’ submission for other OGAs to process and provide permits. Unlike the SWs of most countries, traders/agents using TradeNet do not have to apply for each permit separately.

How do Single Windows solve problems?

Borders represent a ‘labyrinth’ of paper that must be exchanged between private actors and government agencies through manual processes.

In reaction, Single Windows lower certain barriers to trade compliance – identifying, preparing, submitting, and coordinating documents – by creating a public-private interface to overcome what the Organisation for Economic Co-operation and Development (OECD) calls “sludge”: unjustified friction that affects satisfaction, trust, and access to government services.


As institutional arrangements, networks, and platforms, SWs generate observable results that make trade faster and less costly as well as more safe and secure. In offering the highest standard of public service delivery, a Single Window for trade is considered a ‘beau ideal’ by the World Customs Organization (WCO).

As SW is a ‘whole-of-government’ facility, Customs is just one of the involved regulatory agencies and its authority is limited to import/export approval and permitting.

Though Customs is often a lead agency for SW, it does not have legal power to override other OGAs. Even if a SW neither eliminates nor diminishes the role of any regulatory agency, simplification through a single point of entry mitigates duplication, ‘re-keying’, and other data-related issues while enabling consistent data reuse.

Significant benefits arise for trade logistics and economies: across studies on the impact of Single Window, costs fall for all actors (i.e., traders, intermediaries, and governments), trade grows between countries with SWs, and the public sector improves its revenue mobilization/collection capacity.

For example, in the United States, government agencies and traders have realized benefits with the Automated Commercial Environment (ACE). In 2021, the platform reduced transaction processing by 795,000 hours for private actors, assisted process automation for 269 forms/document types, and led to $2.7 billion USD in efficiencies.

How can Single Windows contribute to inclusive trade?

Single Windows are inclusive because, as a whole-of-government interface that is usually free (or low cost), they allow for micro, small, and medium-sized enterprises (MSMEs) to interact with governments with less or no need for intermediaries (e.g., agents and brokers).


A single channel of interaction lowers effort and administrative costs of compliance with documentation and increases accuracy/speed of submission and processing, helping small businesses to better participate in international trade.

For example, In Costa Rica, a study by Volpe Martincus et al. estimated the impact of the gradual phase-in (2007-2016) of an electronic SW, Ventanilla Única de Comercio Exterior (VUCE CR). Adoption of VUCE was associated with increased and more frequent exports by businesses using the system, larger shipments, and greater numbers of exporters, especially MSMEs located in non-central areas.

Such outcomes are particularly important in industries and sectors with specific or complex regulations. For instance, to meet Sanitary and phytosanitary (SPS) requirements for food safety, pest mitigation, or disease prevention, SW facilitated trade in agricultural goods has moved toward processing of electronic SPS certificates.

Are there different kinds of ‘Single Windows’ for trade regulation?

The short answer: no. The term ‘Single Window’ is frequently mis-used. In digital trade facilitation, it’s important to follow UN/CEFACT standard terminologies. Five ‘must’ features differentiate SWs for national trade regulation.

(1) Exclusive for type of operator (2) Standardized information and documents (3) Government mandate for ‘Single Entry Point’ (4) Regulatory procedures and processes (5) Single submission point for individual data elements
Single Window (SW) Must be Must use Must have Must include Must be

Source: Adapted from UN/CEFACT 2017

Given the strict criteria provided by Recommendation 33, true SWs are realized by a country as a ‘National Single Window’ (NSW).

At their core, NSWs are a B2G interface, but some systems have evolved to further allow for B2B transactions. Under Article 10.4 of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA), member governments “shall endeavour to establish or maintain” a NSW. Article 10.4 is also the most frequently requested area of TFA-related technical assistance.

Under Article 23.1, a national trade facilitation committee (NTFC) is usually the appropriate cross-government agency/mechanism to guide and monitor NSW establishment.

Going beyond the scope of UN/CEFACT Recommendation 33, NSWs can be interlinked for Country-to-Country exchange as a ‘Regional Single Window’ (RSW).

However, these systems are not ‘facilities’ in the same sense as the Single Window definition: RSWs are Government-to-Government (G2G) focused and implemented under international frameworks as a collaborative system of NSW networks.

Additionally, and not to be conflated with a SW for trade regulation, there are many ‘sector-specific’ platforms, such as an airport Cargo Community System (CCS) or a maritime Port Community System (PCS).

The International Maritime Organization (IMO) defines a Maritime Single Window (MSW) as a “one-stop service environment”: a vessel operator-to-port interface for maritime procedures (e.g., port entry/departure declaration and security reports) between private and public actors. The amended Annex to the IMO FAL Convention makes MSW mandatory for ports.

In some cases, a ‘unified’ PCS can be considered MSW.

Which governments have established a Single Window?

Hundreds of Single Windows have been deployed and are at different stages of maturity. With more than ten years in operation, some SWs are relatively mature and cover all the OGAs in their respective country, such as Indonesia (Indonesia NSW, INSW), Singapore (NTP/TradeNet), and South Korea (UNIPASS/uTradeHub).

Those already deployed, but in in progress toward covering all OGAs, include Canada (Single Window Initiative, SWI), Chile (Sistema Integrado de Comercio Exterior, SICEXChile), Costa Rica (VUCE CR), Kenya (Kenya TradeNet), New Zealand (Trade Single Window, TSW), Pakistan (Pakistan Single Window, PSW), Peru (VUCE PERÚ), and the US (ACE).

Other jurisdictions are continuing to strengthen their bases for SW, including Australia, Bangladesh, the Maldives, and the United Kingdom (UK). For example, under the Single Trade Window (Preparation) Regulations and the Electronic Trade Documents Act (ETDA) (see FITT coverage), the UK is planning its NSW.

Taking stock of initiatives globally, the WTO Trade Facilitation Agreement Facility (TFAF) indicates that, at 56%, SW is the TFA measure with lowest ​implementation rate.

Indicators of Implementation Results (02/2024)
Global rate of implementation of commitments on Single Window 56%
WTO member countries committing to implement a Single Window in 2024/25 30
Donors/agencies providing technical assistance to implement SW (reported by beneficiary countries) 17

Source: Author based on WTO data (2024)

Regionally, Association of Southeast Asian Nations (ASEAN) members have established the ASEAN Single Window (ASW) and technical collaborations; the Pacific Alliance has connected its member NSWs; and the European Union aims to enhance ‘digital cooperation’ under the Single Window Environment (SWE) regulation.

Why do governments and the private sector need to work together?

More than a technology project, SW initiatives represent major ‘reform’ and require whole-of-government cooperation internally as well as collaboration externally with the private sector to realize a fully-fledged, evolved, SW environment. A Single Window and its suite of services truly represent a ‘virtual enterprise’.

Implementation of a SW requires planning and the creation of a legal-institutional framework, followed by business process analysis/design, document simplification/standardization, data harmonization, platform piloting, and phased deployment.

Despite the variety of implementation or operational models, all stakeholders should be aware of the types of decisions to be made at each phase:

  • Develop internally: The public sector is made up of different agencies must coordinate the roll-out and functioning of SW with their own staff and resources. For governments, it’s important that services – Customs, finance/treasury, health, agriculture, – work harmoniously, regardless of the internal model(s).
  • ‘Buy off the shelf’: Procure hardware, software components, and/or services.
  • Engage in public-private partnerships: Any combination of options at different phases of implementation and/or operation of a Single Window.

What are some key resources for planning and deployment?

There are many implementation guides and even a ‘ChatGPT’ for Single Window. Key resources include:

  • Under the auspices of the United Nations Economic Commission for Europe (UNECE), UN/CEFACT provides core standards and guidance, such as Recommendation 33 (establishing SW), Recommendation 34 (data simplification/standardization), Recommendation 35 (legal framework), the Reference Data Model White Paper, a technical note on terminology for SW, and the SW Assessment Methodology (SWAM).
  • The WCO Compendium on Building a Single Window Environment (g., Volume 1 Part 1, Volume 2, and the supplement), WCO Data Model, and Data Harmonization Guidelines.
  • The United Nations Trade and Development roadmap for building a SW.
  • The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and its Network of Experts for Paperless Trade and Transport in Asia and the Pacific (UNNExT) provide a planning/implementation guide and expert Neelima Pamulapati has developed comprehensive case studies on legal frameworks for SW. Other important UNESCAP guides focus on Business Process Analysis and Data Harmonization/Modeling.
  • The Asia-Pacific Economic Cooperation (APEC) SW implementation guide.
  • With significance for Regional Single Window, UN/CEFACT Recommendation 36 provides guidance required for the interconnectivity and interoperability of two or more SWs, APEC has produced a study on SW systems’ international interoperability, UNESCAP provides a paper on ‘e-trade’ through the ASEAN Single Window, and UN/CEFACT is developing guidelines on establishing RSW.

How are you engaging with Single Window-related efforts?

Cross-border regulations are constantly changing and digital public infrastructure (DPI) must be agile. In certain situations, rules and requirements can change by the minute.

Taken as a whole, the contributions have been to advance Single Window design in support of greater engagement by software development and business communities.

Although ‘greenfield projects’ and ‘legacy system’ integrations face difficulties, prospects exist for SW ‘rules engine’ (re)design in the short-term and new thinking on the long-term viability of systems.

Everything is deeply interconnected and ‘global value chains’ (GVCs) depend on streamlined interactions between people through computer technologies. Single Windows should empower MSMEs to capture value in GVCs through ‘interlinking’.

Any trade professional, especially a CITP, may consider informing SW deployment and upgrading. The next article in this series examines relevant innovations and how a Single Window frontend/backend paradigm can be ‘flipped’ for optimal human communication, interoperability of systems, and impact.

Disclaimer: The opinions expressed in this article are those of the contributing author, and do not necessarily reflect those of the Forum for International Trade Training.
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Top 10 books for international trade professionals to read in 2024 https://www.tradeready.ca/2024/featured-stories/top-10-books-for-international-trade-professionals-to-read-in-2024/ https://www.tradeready.ca/2024/featured-stories/top-10-books-for-international-trade-professionals-to-read-in-2024/#respond Wed, 17 Apr 2024 20:41:26 +0000 https://www.tradeready.ca/?p=39518 In the fast-paced global economy of today, keeping ahead demands a deep understanding of various aspects of international trade. From managing intricate supply chains to navigating geopolitical changes and promoting inclusive cultures, professionals in the industry require a wealth of knowledge to understand their complex business environment and make the best decisions.

These books cover vital subjects like supply chain management, geopolitics, leadership, business strategies, the AI economy, cultural diversity, and the historical context of global trade, offering valuable perspectives for navigating the complexities of the worldwide market.

1. The Culture Map: Breaking Through the Invisible Boundaries of Global Business by Erin Meyer

Erin Meyer’s book “The Culture Map” explores cultural differences in the workplace, emphasizing the importance of understanding nuances for effective communication and collaboration. She introduces “authentic flexibility” for adapting to diverse cultures while staying true to oneself. The book provides insights on virtual communication in multicultural teams and offers practical tips for successful cross-cultural interactions. Meyer’s work is a valuable resource for enhancing intercultural competence and succeeding in diverse professional environments.

2. The Value of Everything: Making and Taking in the Global Economy by Mariana Mazzucato

The Value of Everything” by Mariana Mazzucato critiques how economic value is measured and the blurred line between value creation and extraction in the global financial system. The book examines cases from Silicon Valley to pharma, illustrating how this confusion impacts innovation and inequality. Mazzucato calls for a re-evaluation of capitalism, public policy, and value measurement to promote sustainable economic growth. She challenges the idea that market prices reflect true value and argues for a re-politicization of value as a social and political concept. Professionals importing or exporting are well versed in the myriad of complexities in valuing products, services and components. This book offers a fascinating perspective on the whole system.

3. How the World Ran Out of Everything: Inside the Global Supply Chain by Peter S. Goodman

The book “How the World Ran Out of Everything” by journalist Peter S. Goodman explores the complexities and vulnerabilities of the global supply chain. Through gripping storytelling, Goodman exposes the intricate pathways of manufacturing and transportation that bring products to our doorsteps, while also unveiling the ruthless business practices that have left local communities vulnerable to disruptions. Highlighting recent events like the pandemic-induced shortages, Goodman illustrates how financial interests, market opacity, and deteriorating working conditions have placed the supply chain on the brink of collapse. By following the journeys of individuals from factories in Asia to striking railroad workers in Texas, Goodman advocates for a reformation of the supply chain to ensure reliability and resilience.

4. Scale: The Universal Laws of Growth, Innovation, Sustainability, and the Pace of Life, in Organisms, Cities, Economies, and Companies by Geoffrey West

Geoffrey West, a pioneering physicist in complexity science, unveils the hidden laws governing the life cycle of diverse systems, from living organisms to cities. Contrary to the complexity of these systems, West’s discoveries reveal an underlying simplicity that unites them. By applying the rigor of physics to questions of biology and mortality, West found that mammals, despite their diversity, follow scaling laws that relate their size to various biological characteristics. This groundbreaking insight extends beyond biology to include cities and businesses, where similar laws of scalability apply. West’s work offers a unique perspective on the fundamental principles governing diverse systems, relevant for professionals working in global business. “Scale” is a captivating journey through fundamental natural laws that connect us all in profound yet straightforward ways, illuminating how cities, companies, and life itself are governed by the same principles.

5. Pivot: The Only Move That Matters is Your Next One by Jenny Blake

If change is the only constant, let’s get better at it.

In “Pivot: The Art and Science of Reinventing Your Career and Life,” Jenny Blake, a former career development manager at Google, shares practical strategies for navigating career transitions effectively. In today’s dynamic economy, where job roles change frequently and career plateaus are common, Jenny Blake introduces the concept of the “pivot” as a way to methodically make your next career move. Drawing from her experience in Silicon Valley and as a career consultant, Blake presents the Pivot Method, a framework for taking small, strategic steps towards a new direction in your career. Whether you’re considering a new role, starting your own business, or transitioning to a new industry, this book provides actionable advice to help you move forward with confidence.

With practical guidance and real-life examples, Blake empowers readers to embrace change and chart a path towards greater career satisfaction and success.

6. The International Business Culture Pathfinder: A Practical Guide to Navigating Cultural Differences in Global Markets by Marvin Hough

Written by experienced CITP Marvin Hough, The International Business Culture Pathfinder is a collection of concise business culture guides for 11 countries, including Brazil, Canada, China, UAE, South Africa and more.

This book provides a comprehensive overview of each nation’s business landscape, cultural traits, and practical scenarios demonstrate the impact of culture on business. Whether you are a seasoned global business professional or just embarking on your international journey, this resource is indispensable for grasping negotiations, communication norms, relationships, management approaches, and time management in varied cultural settings.

7. Power And Prediction: The Disruptive Economics of Artificial Intelligence by Avi Goldfarb, Ajay Agrawal and Joshua Gans

In “Power and Prediction: The Disruptive Economics of Artificial Intelligence,” Avi Goldfarb explores the “Between Times” of AI evolution, highlighting the necessity for systemic changes in decision-making processes within organizations. Despite the transformative potential of AI, its widespread adoption has been delayed, akin to past technological revolutions such as electricity and computing. Goldfarb stresses the need for complementary innovations alongside AI advancements.

8. Dare to Lead: Brave Work. Tough Conversations. Whole Hearts by Brené Brown

Leadership goes beyond titles, status, and authority. A true leader is someone who takes on the responsibility of identifying potential in individuals and ideas and has the bravery to nurture that potential.

Renowned author Brené Brown, a four-time #1 New York Times bestseller, has dedicated decades to studying emotions and experiences that add value to our lives. For the past seven years, she has collaborated with transformative leaders and teams worldwide. In her book “Dare to Lead,” she delves into how courageous leadership entails recognizing potential, staying open-minded, sharing power, and embracing vulnerability. The book stresses the importance of cultivating human qualities like empathy, connection, and courage in a society dominated by scarcity and fear. It presents four essential skill sets for courageous leadership and advocates for choosing courage over comfort.

From the humblest middle manager to the CEO of a fortune 500 company, anyone who wants to lead effectively could learn from this book.

9. Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail by Ray Dalio

A few years ago, Ray Dalio observed unique political and economic conditions, leading to his exploration of repeating patterns in wealth and power shifts over the last 500 years.

“Principles for Coping with the Evolving World Order” delves into the most tumultuous economic and political eras in history to explain why the future is expected to be markedly distinct from our own experiences, yet reminiscent of past occurrences.

Ray Dalio discusses unique circumstances leading to global changes and offers advice on navigating upcoming challenges. Dalio’s analysis covers major empires and historical patterns to provide practical principles for preparing for the future.

For professionals working in international trade, navigating the turbulent geopolitical and economic environment is part of the job. Learning more context for how things evolve may just help you get ahead of the curve.

10. Prisoners of Geography: Ten Maps That Expla in Everything About the World by Tim Marshall

Journalist Tim Marshall’s book “Prisoners of Geography” explores how physical characteristics of countries like Russia, China, the US, Latin America, the Middle East, Africa, Europe, Japan, Korea, and Greenland and the Arctic, their strengths, vulnerabilities, and leaders’ decisions. In ten chapters and ten maps, the book delves into geopolitics and how geography shapes global strategies and historical events. It highlights the impact of geography on nations’ destinies and provides a fresh perspective on world affairs, something that is incredibly helpful for anyone doing business in foreign markets.

Knowledge is power, and continuous learning is the cornerstone of success in the evolving world of international trade. Share with us your top reads in 2024!

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From public to private sector, Europe to Africa and beyond – here are the 2023 FITT credential achievers https://www.tradeready.ca/2024/topics/2023-fitt-credential-achievers/ https://www.tradeready.ca/2024/topics/2023-fitt-credential-achievers/#respond Wed, 13 Mar 2024 17:58:32 +0000 https://www.tradeready.ca/?p=39454 As we bid farewell to the challenges that defined 2023 – a year marked by political instability, supply chain disruptions, massive layoffs, and economic uncertainties – the need for a robust skill set and a professional community has never been more critical.

In today’s dynamic job market, the hiring landscape is rapidly evolving. Employers are shifting focus from traditional qualifications to prioritizing practical expertise and tangible skills. This move towards skills-based hiring is transforming the job market, creating both new prospects and challenges for professionals looking to progress in global trade. 

Keeping pace with these changes, FITT sees continued value in offering practical training and credentials to address the current challenges in global business and reflect professionals’ earned skills and knowledge. 

In this brief recap, we invite you to celebrate the achievements of the FITT learning community in 2023 – a testament to resilience, dedication, and the transformative impact of education. 

It’s inspiring to observe the vast number of individuals from varied sectors, job positions, and organizations who have dedicated themselves to enhancing their skill sets and achieving their professional objectives by obtaining FITT credentials in 2023. 

FITT Certificate earners: Nurturing the next generation of trade experts

The FITT Certificate in International Trade is presented to individuals who’ve successfully completed any 3 FITTskills courses, or the equivalency thereof. In 2023, 263 new FITT Certificate holders emerged, showcasing the program’s continued relevance and impact. Notable organizations such as Global Affairs Canada, MUJI, Invest Alberta Corporation, Sumol+Compal Marcas SA, Block 4 Oilfield, LLC, North Atlantic, Export Québec, La Molienda and World Intec Co are now home to professionals equipped with FITT Certificates. 

Geographically, the FITT Certificate holders are making their mark in Asia-Pacific, North America, and Europe. The job roles, including Trade Commissioner, International Trade Advisor, CEO, and Export Consultant, reflect the diverse career paths of those who started the training to get the FITT Certificate.

Value of FITTskills Courses: 89% of respondents find FITTskills courses valuable. – 2023 FITT Customer Satisfaction Report

FITT Diploma holders: A growing force in global business

The FITT Diploma in International Trade holders are on the rise, with 487 graduates joining the league in 2023.

87% of respondents find FITTskills courses relevant to their jobs and responsibilities. – 2023 FITT Customer Satisfaction Report

The number of FITT Diploma holders not only eclipses the previous year’s count but also emphasizes the increasing importance placed on trusted international trade credentials. This year’s FITT Diploma earners span diverse sectors, including agriculture, food, manufacturing, finance, logistics, and technology.

The extensive list of companies these diploma holders are now associated with includes enterprises like RBC Royal Bank of Canada, TD Bank Group, Epiroc, SGS Canada Inc., Haya Solutions Inc., Coca-Cola Bottling, and Tjx Canada. From government agencies to private enterprises, the FITT 2023 Diploma holders are weaving a rich tapestry across the international trade spectrum. 

Their reach extends globally, with professionals working with business divisions located in Europe, Latin and North America, Asia, and East Africa.  

Among the Diploma holders, the job roles include Export Sales Manager, Business Development Officer, Commercial Officer, Project Manager, Import & Export Analyst, Supply Chain Specialist and more. 

fitt-testimonialHaving gained expertise in the 6 key  knowledge areas that make up the FITTskills program, the FITT Diploma holders have achieved one of the main requirements to apply for the Certified International Trade Professional (CITP) designation 

CITPs: A community of validated trade leaders represented world wide

The Certified International Trade Professional (CITP) designation stands as a beacon of excellence in global trade. With CITPs present in 47 countries, the community represents a network of certified international trade practitioners, contributing to various sectors and industries. 

The list includes a wide range of job positions, spanning from Trade Commissioners, Managers, Directors, and Presidents, to various specialized roles in logistics, finance, law, marketing, supply chain management, and education.  

The company list exhibits a diverse array of industries, ranging from government and trade organizations, such as Global Affairs Canada and Export Development Canada, to educational institutions like the University of Calgary and Niagara College. It also includes technology giants like IBM and Google, manufacturing and aerospace companies such as Airbus Helicopters and Teck Resources, as well as consulting firms like Deloitte. The presence of financial institutions, retailers, healthcare, logistics, and mining companies underscores the broad spectrum of sectors involved in international trade and business development. 

From professionals who specialize in logistics, law, finance, and education, CITPs are leading the charge in shaping the future of international trade and business development. 

fitt-testimonial

FITT continues the mission of advancing the international trade profession. The growing numbers of FITT Diploma and Certificate Holders, coupled with the global presence of CITPs, paint a picture of a community that is not only expanding, but also influencing the trajectory of global commerce.

As we reflect on the accomplishments of FITT’s learning community in 2023, we anticipate an even more impactful journey ahead, shaping the future leaders of international trade. Whether you’re a government official, a private sector professional, an aspiring entrepreneur or a leader looking for training to upskill your team, you can be inspired by the 2023 FITT credential achievers and begin your own journey through skills development and professional certification.

More than ever, validated skills are the gateway to success in the complex world of international trade. 

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Unpacking the Digital Transformation of Trade https://www.tradeready.ca/2023/topics/unpacking-the-digital-transformation-of-trade/ https://www.tradeready.ca/2023/topics/unpacking-the-digital-transformation-of-trade/#comments Wed, 29 Nov 2023 19:38:36 +0000 https://www.tradeready.ca/?p=39286 Trade-enabling technology – TradeTech – makes international commerce more efficient, inclusive, and sustainable.

In this three-part series, digital trade expert Craig Atkinson, CITP addresses key questions and practical considerations related to technology-enabled cross-border interaction among buyers, sellers, intermediaries, and governments. Article based on an interview by FITT’s Pamela Hyatt.

Craig Atkinson, CITP Headshot

Craig Atkinson is the Founder and Director of Lexmerca International Trade and a Trade Development Specialist with the International Trade Centre (ITC), the joint agency of the United Nations (UN) and the World Trade Organization (WTO). His roles focus on addressing legal-technical challenges that affect global trade.

Active in the field of digital trade, Craig participates in the World Economic Forum’s TradeTech community and in projects with multiple international organizations, academic institutions, technology foundations, and standards bodies.

Academically, he is a Non-Resident Fellow with the World Trade Institute (WTI) as well as a Research Affiliate with the Singapore Management University (SMU) Centre for AI and Data Governance and the SMU Centre for Computational Law. Professionally, Craig has been a FITT Certified International Trade Professional (CITP) since 2011.

What is digitization? From documents to data?

Digitization involves moving away from paper documents – that may be authoritative with original ink signatures or stamps – toward electronic representations of what paper ‘would’ include.

Digitization vs Digitalization

Digitization is the conversion of analog content into an electronic form (resulting in a representation of data, information, objects, images, sounds, documents, signals, etc.).

Digitalization is the utilization of digital technology to improve processes and alter business and governance models. These changes lead to opportunities for improved coordination.

Unfortunately, it is common to conflate efforts for digitization, the first step in digital transformation, with ‘digitalization’ that follows. To really understand what digitization entails for trade, it is important to initially know something about electronic data.

As industry and government transition toward Electronic Data Interchange (EDI) or Application Programming Interfaces (APIs) between systems, many types of trade documents – financial/commercial, transport, and compliance – are being digitized and represented as ‘digital paper’ or originating as machine-readable (i.e., neither requiring extra ‘keying-in’ of data by people nor optical character recognition, OCR, by machines).

Digital paper formats, such as PDFs, may or may not contain machine-readable data fields (or have data appended). Among others, directly machine-readable formats include the eXtensible markup language (XML, a standardized markup language designed to define how data and information is organized) and JavaScript Object Notation (JSON, a standardized file and data interchange format that uses human-readable text to store and transmit data objects as tables).

An endpoint for digitization, electronic data sources break the mould of thinking about ‘documents’ and move the conversation toward how ‘data’ are structured and used as well as availability, quality, compatibility, and legality.

How is the digitization of trade documents taking hold in practice?

My experiences in advancing electronic business and government technology (GovTech) can help to answer this question. Since 2018, I’ve been an Expert with the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT). Through the international system, UN/CEFACT engages with all stakeholders in the trade community to develop standards and technical guidance.

In advancing digitization, its outputs include the UN Trade Data Element Directory (UNTDED/ISO 7372) as integrated into other standards, the ‘buy-ship-pay’ Reference Data Model (BSP-RDM), the Supply Chain Reference Data Model (SCRDM), the Multi-Modal Transport Reference Data Model (MMT-RDM), and document representation standards for electronic invoicing (e-invoice) and electronic sanitary and phytosanitary (SPS) certificates (E-cert).

As a global forum, goods trade professionals should be aware that UN/CEFACT’s standards increasingly underpin domestic electronic commerce (e-commerce) and digital trade.

The conceptual framework for digital trade

chart showing the conceptual framework for digital trade from IMF, OECD, UNCTAD and WTO
Source: IMF, OECD, UNCTAD and WTO (2023)

I also maintain a Member-Observer role in the Universal Business Language (UBL) Technical Committee (TC) under the Organization for the Advancement of Structured Information Standards (OASIS). Involving contributions from individuals, the private sector, and governments, OASIS develops open standards in a variety of areas, including transportation, payments, and finance.

For example, the UBL TC has produced an open library of trade-relevant electronic document representations (e.g., sales invoices, purchase orders, and carnet for temporary export of goods) in XML and JSON formats. Version 2.4 of UBL was recently approved as a Committee Specification.

Several document-specific initiatives are emerging in parallel to these efforts, leading to a greater need for stakeholder collaboration to resolve potential interoperability issues between proliferating document standards.

For instance, the Future of International Trade (FIT) Alliance was established in 2022 by five founding members (BIMCO, DCSA, FIATA, ICC, and SWIFT). The main objectives of the FIT Alliance are to raise awareness and accelerate adoption of a standardized electronic Bill of Lading (eBL) across entities in ocean shipping (creating a ‘universal eBL’). For trade professionals looking to engage with eBL initiatives, it’s critical to consider what any bill of lading should include.

Shaping digital standards for customs, I also monitor the work of the World Customs Organization (WCO) and updates to its Data Model (DM). A pillar of goods trade facilitation for more than 20 years, the WCO DM provides structured, harmonized, standardized, and reusable sets of data definitions and electronic messages to meet operational-legal requirements at the border.

Adapting to and utilizing such standards at digital ‘touch points’ with cross-border regulatory agencies is quickly becoming a core competency for trade professionals involved in compliance.

Lastly, trade professionals should follow developments in the legal environment at home and abroad. By committee, lawyers under the United Nations Commission on International Trade Law (UNCITRAL) have crafted model laws as templates to inspire national legislation for the legal recognition of electronic trade documents/data. Alongside work to map trade data elements, the International Chamber of Commerce Digital Standards Initiative (ICC DSI) promotes UNCITRAL instruments.

While such initiatives have largely emphasized goods trade, digitization combined with the legality of electronic communications and transacting is also needed for services trade when contemplating e-invoicing, e-payments, and taxation.

So, that’s digitization in a nutshell. It is vital for stakeholders in the trade community – from senior leaders to newly minted trade professionals – to have a strong grasp on the nuance. The ‘end-to-end’ supply of electronic data is only as strong as its weakest link and its availability is a midway point. An additional step, digitalization, is required for digital transformation to address the manual processes associated with cross-border interaction.

What is digitalization? Towards process improvements and systems?

A second step, digitalization can occur when you have requisite data sources in electronic form and there is no longer a need to physically coordinate the submission, exchange, and processing of paper documents. Within disparate initiatives, digitalization concerns process improvements – multi-layered possibilities for better coordination and automation of procedures – that arise from using electronic data sources with digital technologies (typically through computer programming). For trade, digitalization can help businesses to anticipate costs before they’re incurred and better comply with market requirements.

This implies that, by leveraging digital technologies, the potential for market expansion is significantly greater for businesses of different sizes. Digitalization can be considered the ‘great equalizer’ because it means that an individual or small business may use technology to better participate in domestic e-commerce and digital trade. For digitalization-oriented approaches to work, there needs to be foundational Digital Public Infrastructure (DPI) in place, such as national or regional Single Window (SW) systems for trade.

In combination with the right public infrastructure, tools like Digital Intermediation Platforms (DIPs), “online interfaces that facilitate… direct interaction between multiple buyers and multiple sellers, without the platform taking economic ownership of the goods or rendering the services that are being sold (intermediated)” create possibilities for small enterprises to scale their international market reach to the level of businesses with fully staffed trade operations/compliance teams.

How can professionals contribute to the digital transformation of trade?

Digital transformation is as much of an endpoint as it is the beginning of a cycle that changes how businesses, intermediaries, and governments interact. Aside from staying aware of the various initiatives for digitization and digitalization, it’s important for trade professionals to actively contribute given their unique experiences within different stakeholder groups.

Informing the development of infrastructure allows people to build specific tools to address the ‘pain points’ experienced by small enterprises. This also means that any trade professional should be able to use these tools, along with their expertise, to have the option of going ‘beyond the border’.

A caveat, technology aside – I believe that businesses should always try to learn their home market first.

Any good trade advisor will tell you it’s better to prove your local market, or at least operational capacity, before making a foray into international markets.

Combining practical experiences with trade expertise, like the Certified International Trade Professional (CITP) designation, equals a path to success for businesses in this new ‘digital economy’.

It’s important that businesses have team members with a grounded professional background in trade before considering digital transformation or offering services.

A CITP or someone who has completed a program, like the FITTskills program, is incredibly useful for the purposes of validation within a particular community, whether business or government, related to trade.

Learn more about Single Window systems in Craig’s deep dive article, part 2 in his series on digital trade technology, or TradeTech.

Disclaimer: The opinions expressed in this article are those of the contributing author, and do not necessarily reflect those of the Forum for International Trade Training.
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Forecasting, inflation and near-shoring – what exporters need to know heading into 2024 https://www.tradeready.ca/2023/featured-stories/forecasting-inflation-and-near-shoring-what-exporters-need-to-know-heading-into-2024/ https://www.tradeready.ca/2023/featured-stories/forecasting-inflation-and-near-shoring-what-exporters-need-to-know-heading-into-2024/#respond Wed, 22 Nov 2023 20:12:27 +0000 https://www.tradeready.ca/?p=39276 Keeping an eye on the world’s economy is important for those involved in cross-border business. But, especially in today’s turbulent and complex environment, it’s an increasingly difficult task. Fortunately, we can look to the leaders who make it their life’s work to keep abreast of this complicated topic and its implications for exporters and businesses in general.

Peter Hall has long been an influential voice in the international business community. He served as VP & Chief Economist at EDC for over a decade. In the FITT Economic Briefing series, Peter explores the current state of the world economy, forecasts and what it all means for today’s exporters.

Here is a recap of the first three installments in the series. For the full picture, watch the videos and be sure to subscribe to FITT’s Youtube channel so that you will be the first to know when there is a new briefing update.

Is forecasting passé? Projections and pandemonium are a strange mix

Released in August, 2023

Chaos is a big theme these days – it appears in books, movies, high-level economic and political discussions, and it has come to permeate our view of things. Whether it’s climate change, technological change, de-globalization, terrorism, populism, pandemics,  demographic change, misinformation, corporate ethical issues, IP, AI or the host of other mega-shifts I’ve left off the list, each individual issue is daunting on its own; collectively, they are something of a nightmare.

The shock, persistence and randomness of these issues has led many to conclude that it’s not really possible to see the future, that the models of the past are broken. That’s probably true if everything has changed. But everything hasn’t changed.

The traditional business cycle is still relevant

We still talk the business cycle and its four phases: growth, peak, recession and recovery. All of these terms are still in our business vocabulary, and still active in reality.

What’s confusing about today’s business cycle is that it doesn’t seem to be following the same cadence as in the past. In recent history, we could count on a recession happening roughly every 10 years. However, dating back to the early 1980s, the world has undergone significant positive shocks that have increased our collective capacity to grow. Things like computing power, telecommunications, the rise of emerging markets, globalization, and myriad related factors and applications have revolutionized and set whole new limits to our growth potential.

It’s really hard to argue that in the big, driver economies there is clear evidence of pre-recession excesses. In fact, there is ample evidence of the exact opposite – a massive anti-bubble of pent-up demand.

If you don’t agree, you’re in good company – but try these arguments on for size: first, the COVID-19 policy-induced recession simply deferred a lot of intended spending. And the money is there for it, from incomes that were just banked to paid-out but unspent stimulus money. Second, prolonged sluggish growth created a huge groundswell of pre-pandemic pent-up spending. Third, at the same time, Americans vastly reduced their personal debt levels. Fourth, the 2008 housing disaster, most evident in the U.S. market, brought chronic underbuilding that created a big supply-demand gap that will take years to fill. In the U.S. and Europe, housing is on the up and up. No wonder the Fed is finding the inflation battle hard.

Canada and the U.S. are facing different scenarios into 2024

Ditto for Canada? Sadly, no. Soaring consumer debt and poor housing fundamentals will not respond well to aggressive interest rate hikes. This, together with higher consumer prices will ensure that Canadian consumers are tighter with their cash. Avoiding a significant domestic recession will be very difficult for Canada to do.

This time around, Canada’s exporters will get a free pass. The relative strength of our key trading partners will likely shift business interest more to an export focus – by extension, heating up demand for international trade expertise.

Not only will exports partly offset the domestic malaise, but that same domestic weakness could well free up labour and plant capacity for the export sector – it’s actually a good moment to keep an eye open for talent that’s currently being shed in the high tech, financial services and skilled-trade firms that primarily serve the internal economy. It’s also a good time to be on the lookout for strategic investment plays.

Here’s the deal

Forecasting is alive and well, if the impact of structural changes is properly understood. Data and cyclical fundamentals together show that the global economy is stronger than news reports have indicated. This will help it to absorb higher interest rates without drastic fallout, and to continue growing for a number of years to come. To do this successfully, more capacity will be needed to deal with rising demand. That will be good for Canadian exports, Canadian business investment, and skilled international trade professionals.

Is Inflation Going the Wrong Way? Analysts say more rate hikes ahead

Released in September, 2023

As you know, businesses, exporters and consumers have already paid a huge price in the Bank of Canada’s inflation fight. The sharply higher cost of borrowing has hit us from all angles – personally, in business investment projects and working capital needs, and in business flows.

Haven’t rate hikes gone far enough? Why aren’t they more effective? What about core inflation?

That’s all the Bank of Canada cares about, right? Partly right – in an inflation fight, they’re looking at everything.

What wasn’t discussed in immediate news flashes over the past few months is that certain key groups in the CPI basket are either deflating or in disinflation territory. Take household operations, furnishing and equipment, for instance. It’s a category that accounts for almost 15% of the CPI basket, and has fallen by an average of 0.5% per month for the past three months. That’s an annualized drop of 5.9%, a pretty serious tumble. Guess what – this category isn’t alone. Clothing and footwear tumbled by 2.8% in the past two months alone. Meanwhile, health care costs have flatlined. Add it up, and about a quarter of the basket is really hard-hit.

Still a lot of interest costs pain ahead

This sure complicates the budgeting process. Businesses are struggling with irrepressible energy and transportation costs, critical for international trade, and a softening domestic market that’s putting downward pressure on selling prices. Weak producer prices are a mixed blessing; input costs are muted, but those selling intermediate goods are in a squeeze.

Monthly increases in mortgage interest costs are still rising at a double-digit pace that has persisted for 14 months, and is almost sure to continue for some months to come. In July alone, growth was at a 24% annualized pace. The pace was actually higher a few months back, but today’s growth is on top of previous gains and is almost sure to barrel on in the coming months. For interest costs, there’s still a lot of pain ahead.

Is the cure worse than the disease?

Now wait a minute; when we’re talking about inflation from interest rate hikes, isn’t that inflation that’s sort of caused by the Bank of Canada? Well, I’m afraid so.

This is one of those strange situations where fighting fire with fire is the remedy. But if that’s the case, shouldn’t the measure of success be the price path of everything but mortgage interest costs? That is, are the fires that are being intentionally started helping us conquer the original fire? Seems reasonable.

That should be easy; mortgage costs are hefty, so tackling what remains should be easy, right? Not quite; hard as it may be to swallow, the weight of mortgage interest costs in the the entire 2022 CPI basket was just 3.46%. But don’t despair; multiply that by the 30.6% year-on-year growth in this category and you add a full percentage point to headline CPI!

Here’s the deal

Monetary policy remains a delicate dance. Rate hikes to date will still be biting down hard on the economy well into next year. Spurious and fleeting price changes will doubtless complicate the exercise, but the Bank’s potion seems to be working. As we’ve seen in the past, too much is lethal.

Navigating Near-shoring: Tempering enthusiasm with caution

Released in November, 2023

It seems everywhere there’s business-talk, near-shoring is one of the key topics. Whether in keynote presentations, strategy meetings or side-bar conversations, there’s lots of buzz.

While serious talk of near-shoring is nothing new, springing to life with SARS-1, business-arresting weather and seismic events and the Global Financial Crisis of 2008, it really took the COVID-19 pandemic to kick it into tangible action. In investment-speak, that’s pretty recent.

It takes time to actually get shovels in the ground, but that seems to be happening in spades in 2023.

What does this mean for exporting businesses in Canada?

Many are welcoming this enthusiastically. They see new investments coming in, with employment opportunities, ribbon-cutting ceremonies and of course tax dollars to follow. And if they’re not coming here, well, they’re setting up shop in a ‘friendlier’ location. Supply chains are more secure. Shipping will be more predictable, and require shorter lead times. In short, it’s much more about us, and it’s keeping the so-called ‘bad guys’ out. But is it all positive?

6 key near-shoring challenges for exporters

Unfortunately, there are a good few things to watch out for:

  1. Higher costs

Let’s face it, under globalization, business was organized internationally to minimize costs. Competitive pressures ensured that businesses would make cost-efficient decisions. It’s logical, then, that unwinding this process will result in higher-cost production. The timing isn’t great, as we are already dealing with the first serious inflation outbreak in 31 years. Exporting businesses will have to factor this into their plans, and will have to be creative to remain competitive.

  1. Labour shortage

New domestic investments will require workers, and these – at least in Canada, the U.S. and Western Europe are in short supply. As such, these new operations will likely bid up the cost of labour, which no doubt will seep into our own organizations, magnifying wage pressures that are already present.

Canada’s acute shortage of skilled labour also suggests that new investments may well poach skilled labour from existing operations, compromising production from existing facilities, and again, adding to wage pressures for skilled workers.

  1. Financing

The timing of new investment activity isn’t great, as it’s clashing with the recent spike in interest rates. While we may welcome all of this new activity, the cost of what it produces will likely have to factor in increased borrowing costs.

  1. Location

You may be happy that a key part of your supply chain is moving closer, say from China to Mexico. If you haven’t dealt with Mexico-based businesses before, there’s likely a lot to learn about transactional, taxation and logistics issues, among other things. And even if you are familiar with the new market, there may well be differences that relate to the nature of the goods and/or services in question.

  1. Are potential partners really near?

Near-shoring has created a wave of investments from offshore suppliers, in an attempt to be treated as local content. China is particularly active, with anecdotal evidence suggesting strongly that it is investing in North America, especially Mexico, and in places like South Korea which have preferential trade agreements with the U.S.

This new investment is generally being welcomed by the recipient jurisdictions, but if in U.S. policymakers’ eyes this is ultimately viewed as a violation of the spirit of near-shoring, then these investments – and those supplied by them – may well find themselves on the wrong side of Canada’s top customer. With this in mind, remember that USMCA is up for renewal in 2026.

  1. Politics vs business

Businesses make investment decisions based on long-term dynamics, given the amounts being committed and the need to generate shareholder value. Politics is often on a shorter horizon, and can be fickle. When it finally dawns on consumers that they will ultimately pay the bill for this, in addition to current inflation pressures and higher interest rates, they may sour on near-shoring.

At the same time, businesses need to be aware that higher-cost repatriated investment means that there are still lower-cost operations elsewhere that could well threaten future competitiveness. They, too, may lose enthusiasm for near-shoring. Best to keep an open mind and remain flexible.

Here’s the deal

Past promises to re-shore, near-shore or re-localize supply chains weren’t honoured for a reason. Businesses simply weren’t convinced that the long-run costs of disruption justified a substantial re-working of their global production networks. Political pressure and security concerns have convinced many that it’s time to make good on the promises.

Whether or not the changes stick remains to be seen. Where national security is concerned, near-shoring is here to stay. For the rest, time alone will tell. As near-shoring is essentially a policy in flux, it is critical to keep an eye on the progression of the issue in the coming months.

Don’t miss a FITT Economic Briefing update. Subscribe to FITT’s Youtube Channel and turn on notifications.

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