It’s not a rhetorical question. At least not if you’re talking about a specific form of fog: fogponics technology, which increases water efficiency when growing plants. The technology comes from NASA, originally part of a project to grow food on the International Space Station. And at Plantaform, an Agritech startup employing fogponic technology for the at-home gardener, fog is a game-changer.

Plantaform, a cleantech startup based in Gatineau, Quebec, Canada, is the brainchild of co-founders Alberto Aguilar, Kiwa Lang, and Georges Hamoush. While reading an article about fogponics during his studies in industrial design at university, Lang immediately recognized how water-efficient it might make a home garden.

He became obsessed.

“He made [fogponics] his entire thesis,” reports Aguilar, who first met Kiwa while attending high school together in Dubai.

“When he was initially developing this project we were living in two different continents. But Kiwa knew I had an entrepreneurial background and I used to work in a startup which I co-founded—working on bacteria mutation for cannabis—and he reached out asking me if we could start a business with this technology.”

With Canada importing 90% of its leafy greens from Mexico and the U.S.—and the UAE importing some 98% of its leafy greens from neighboring countries—it seemed like a revolutionary technology for an underreported problem.

And it all comes back to a simple idea:

The Nespresso machine.

The product: Understanding Plantaform

Plantaform is an indoor gardening system similar to a Nespresso machine. With a touch, you can grow up to 15 different varieties of plants—the same way you might brew a single cup of coffee.

Plantaform works by inserting capsules into the system, adding some water, and then clicking a button. The plants can be ready to harvest as soon as four weeks later. What’s revolutionary here is “fogponics,” the new technology pioneered by NASA.

This has become the most water-efficient technology in the world—using a suspension of nutrient-laden water to deliver the oxygen and nourishment each plant needs at a root level.

The concept is similar to aeroponics, except instead of using mist action to deliver these nutrients, the sustenance is delivered through a steady fog.

“I found the concept fascinating,” says Aguilar of the early prototypes for Plantaform. “I never saw a product like it. It looked very futuristic.”

Plantaform now offers a variety of plant pods. Herbs. Basil. Mint. Leafy greens and edible flowers. This diversity gives Plantaform’s users fresh, organic produce year-round, complementing their home gardens and reducing food waste.

“Food waste is a major issue,” Alberto explains. “We aim to minimize this by allowing people to grow what they need and avoid the common problem of produce spoiling before it’s used.”

With a revolutionary way of growing greens indoors and a prototype in hand, they decided to start Plantaform. By October 2019, they spent every day doing research on the problem of unsustainable or inefficient plant cultivation.

“We saw a huge problem that we could address with this product,” says Aguilar. “And that problem was sustainability.”

Understanding international business through the carbon footprint lens

Leafy greens are big business. With Canada importing 90% of its leafy greens and water-poor countries like the UAE relying even more heavily on imports, the transportation system is under increasing strain to deliver plants to the people who need them. This is a problem. Greens are being shipped internationally via carbon-intensive trucks. Fogponics could make leafy greens a cinch to cultivate at home.

According to Aguilar, self-sustainability was one of the key reasons for Plantaform. But shipping their product across borders proved to be an unexpected obstacle.

“We’ve faced a lot of challenges when exporting an agritech product and consumables.”

Exporting produce—especially seeds—is complicated. “Seeds are a very delicate matter when exporting. And so our first export was actually to the U.S.—and that device did not make it through the border.”

The problem? Regulatory load. Plantaform did not have its phytosanitary certification, which meant the products were sent back. And when the products were returned, they didn’t arrive in great condition.

“I’m telling you,” says Aguilar, “It was destroyed.” Customs had reportedly opened the box and turned the device upside down, resulting in scratches everywhere and a device that was no longer salvageable.

The U.S. wasn’t the only problem. Plantaform experienced the same problem on a shipment to Italy, having sent a custom device to a new investor and partner, Formula One driver Yuki Tsunoda. The product was bounced back at the border. The issue? Once again: certifications.

If Plantaform was going to succeed, it needed to start creating an export plan—and dealing with the certification processes.

Certifiable: Blazing Plantaform’s path through international trade

Aguilar and the other co-founders knew that the key to getting Plantaform’s products to their international customers was to obtain the proper certifications. And they’ve found some strategies that have worked:

• Shipping in bulk. Plantaform knows that if its company is going to succeed, it’s going to have to achieve scale. And while one or two machines might have gotten across borders at the prototype stage, larger orders are more likely to raise red flags. “One of the ways that we’ve addressed this challenge has been shipping [products] in bulk,” reports Aguilar. This makes it easier to obtain one phytosanitary certification for each batch. According to Aguilar, that strategy is currently in place for Plantaform’s U.S. expansion.
• Developing an international presence. Plantaform has also expanded its global footprint. They recently registered a new corporation in Florida and are shipping “loads” of new inventory to a 3PL warehouse in Vermont. Once the products are in Vermont, it’s much easier to ship locally within the U.S. without concerns over any new certification issues.
• Add-your-own-seeds. The original device came with its own seeds, which made it more convenient. This was essential since the Plantaform systems are capable of adapting their cultivar conditions to each seed. But now Plantaform is experimenting with an add-your-own-seeds approach. The device can use machine learning (ML) to learn what’s growing, adapt to its needs, and adjust the cultivar conditions independently. It’s still a hands-off approach for the consumer. And since this system doesn’t require specific seeds to ship with the devices, there will be fewer shipping rules to worry about.
• Training. When Plantaform started, they weren’t aware of FITT, which offers training for handling the difficult logistics of dealing with customs. Aguilar has dubbed their learning process one of “trial and error,” with continuous adaptations as they learn the risks inherent in global trade. They’re also being proactive with how they learn, taking advantage of the Feasibility of International Trade course and the Creating an Export Plan course to be more systematic and avoid costly pitfalls

It’s been a long process of learning and adaptation for Plantaform. The company has learned that compelling technology isn’t always enough to make business success happen at scale. But thanks to these innovations, the future for fogponics is looking clear.

It’s a global market, and Plantaform’s seven-person team based in Gatineau, Quebec, has big ambitions. Plantaform manufactures its product in a factory in Montreal, so it’s fully Canadian and Quebec-made.

It’s a point of pride for the team—but it has led to some challenges. One of the appeals of creating a fogponic system for growing greens at home is that it can separate plant lovers from an intensive global supply chain. But to extend its reach to those customers—including those who need it the most—Plantaform has had to embrace a new challenge. They have to learn how to extend products and services to a global market.

Helping the world deal with the sustainability crisis

Pick up a piece of fruit at the store. The sticker likely won’t read “locally grown.” In fact, chances are good that the fruit came from another side of the planet.

“Every piece of produce that you buy in the supermarket has traveled an average of 2,400 kilometers just to get to your door,”

And that’s a major problem. It’s hard to get serious about environmental concerns like carbon dioxide removal when something as simple as purchasing an orange at the store may require ridiculous amounts of carbon just to make the logistics work. With geopolitical concerns weighing on the feasibility of international trade in the long term, the world is in dire need of sustainable solutions for cultivating fresh produce.

Plantaform’s goal is to make at-home produce more convenient and accessible—like starting up a Nespresso pod. For starters, growing produce at home reduces greenhouse gas emissions. Rather than relying on an extensive trade network that brings produce from one area of the world to another, people can enjoy fresh, organic produce year-round. If users are growing their greens at home, there’s also less food waste.

The idea is simple: put more control in the consumer’s hands. “We can try to buy organic products,” says Aguilar, “but how do we know if it’s truly organic? How many hands have touched it? I would challenge anyone to buy a bunch of cilantro or basil from the store, put it in water, and shake it up a bit. You’ll be amazed at all of the dirt that comes out of it—not to mention the microbes and chemicals from pesticides that you can’t see. That’s all stuff that you put in your body.”

It’s a sad truth about our modern agriculture. And while pesticide residue or dirt might not kill the consumer overnight, it’s certainly not helping. The industrial practices that lead to this kind of cultivation can lead to soil degradation at mass scales.

With Fogponics, there’s no need for cultivating soil, and there’s no need to continue to buy produce from companies who aren’t committed to a sustainable future.

Funding the products that change how we live—that just might stand a chance.

And all that R&D that goes into developing and improving their technology goes to good use, whether it makes it into their final products or not.

“Every Wednesday, we donate all the produce from our R&D lab to two incredible local organizations, the CRC Rideau-Rockcliffe CRC and Ottawa Good Food Box, both of which are fighting to make a difference in our community. At Plantaform, we’ve committed to donating hundreds of pounds of freshly harvested produce every year,” explains Alberto.

Finding inspiration in new technology—and new solutions

Planting greens in your own home is a small-scale solution. But Plantaform’s ambitions are at scale.

Aguilar points to a company he admires, Bowery and Aerofarms, as inspiration. “They’re incredible,” says Aguilar. “They’re in every corner of the world.”

As one of the largest vertical farming companies in the world, Bowery has a global presence that Plantaform would love to emulate. Aerofarms has partnered with companies like Emirates Airlines, growing produce for the airline’s flights straight from Aerofarms produce. Aguilar mentions that the goal isn’t to feed a thousand. The idea is to give people such at-home growing capabilities that Plantaform’s indoor gardens eventually feed millions of people.

Changing the world one plant at a time: People are beginning to notice

If you’ve seen Plantaform before, it may have been from Startup Canada. This national, grassroots organization aims to empower entrepreneurs across the country—providing resources like mentorship and networking opportunities to companies with great ideas who might not have the resources to grow themselves.

Plantaform pitched during the Startup Global program in 2022, performing extremely well—and even making it to the finale. Aguilar reports that Startup Canada has been following the Plantaform journey ever since. In fact, Startup Canada reached out to Plantaform and asked them to be part of a panel to help support other entrepreneurs in the agritech field as part of a  Sustainability Industry Advisor Circle.

Plantaform has already received considerable attention for its product. It was featured as “Startup of the Year” by Faces Magazine, won the 2023 “Next Big Thing” award at the Best of Ottawa Business Awards, and “Tech Smallbiz of the Year” by Zenbooks. It earned the aforementioned semi-finalist status at Startup Global and additionally won “Ottawa’s Green Initiative of the Year” from Faces Magazine.

Plantaform’s journey from a university thesis to a global player in indoor gardening shows just how much is changing around the world. Innovation, adaptability, and understanding international markets are going to be more important than ever as the 21st century unfolds. With a clear vision for the future and a commitment to sustainability, Plantaform is poised to make a lasting impact on how we grow and consume our food.

Without adequate CO2 reduction and removal techniques, Earth is bound to become dangerous and uninhabitable in certain areas. Even now, impacts like extreme weather, widespread extinction, and social, economic, and political breakdown are already starting to happen and are expected to worsen.

For these reasons, we need trailblazing companies and professionals to step in and affect change on a global scale.

Startup Carbon Lock Tech, helmed by Kevin Danner, has answered the call and is working to develop the technologies to help slow down and reverse the negative outcomes associated with CO2 accumulation.

In this company profile, we will take a deep dive into Carbon Lock Tech’s journey from start-up to the present. We’ll cover the founding story, the mission, values, and mechanisms that drive Carbon Lock, their international expansion, the science behind carbon dioxide removal, and much more.

The Opportunity Hidden in Organic Waste

At its core, Carbon Lock Tech is a cleantech startup that uses an innovative, nature-based solution for removing carbon from the atmosphere and locking it away. But that’s just the tip of the iceberg.

Organic waste, fossil fuel combustion, deforestation, and livestock farming result in an excess of carbon in the atmosphere.

Why is this important? Think about the carbon cycle. Plants absorb carbon dioxide and expel oxygen. The animals then take in that oxygen and release carbon dioxide. This cycle has been self-balancing for hundreds of thousands or years, but that’s no longer the case as greater and greater amounts of carbon dioxide are being added to the atmosphere each year.

Fortunately, a good portion of that carbon is absorbed through photosynthesis and is stored in plants’ leaves, branches, seeds, fruits, and roots. That same carbon then circulates through our economy in the form of products and consumables like food, textiles, clothing, and other organic materials.

But when we are done using these materials, much of it ends up decaying in a landfill as waste. As it decomposes, methane (which is 25x more potent than carbon), is released into the atmosphere. Methane may also be released when plants die.

Using a patented pyrolytic reactor system, Carbon Lock Tech intercepts this waste carbon and transforms it into biocarbon, which reduces methane formation. This biocarbon can then be used as a soil amendment, incorporated into cement-based materials, or used for reclamation projects. In these applications, the biocarbon works to lock away carbon from the atmosphere and reduce downstream emissions.

Carbon Lock leverages a method that the Canadian government recognizes as a viable solution in “Capturing the Opportunity: A Carbon Management Strategy for Canada.” Per the strategy, proper carbon management involves “CDR (carbon dioxide reduction) approaches that remove CO2 from the atmosphere and store it durably in natural carbon reservoirs, such as rock formations, soils, plants, oceans, or long-lived products.”

The goal is to help the world reach net zero by 2050 and avert the worst of the climate crisis.

The journey from initial concept to international venture

Carbon Lock Tech founder and CEO Kevin Danner first became engaged with the issue of climate change in the late 1980s while taking a course on international efforts to address the ozone layer issue. He followed up with additional studies into evidence-based decision making before pursuing a career in government. Kevin worked as a risk manager and policy analyst for the Department of Natural Resources Canada and the Department of Fisheries and Oceans Canada and then as a policy advisor for the Manitoba government on the Made-in-Manitoba Climate and Green Plan.

Throughout his tenure, he has focused on climate change and carbon management. But after becoming frustrated with the slow progress toward achieving net-zero and Paris climate commitments, he needed to make a change. He then left the government sector, co-founded Carbon Lock Tech, and began to develop systems and technologies for converting organic matter into stable biocarbon and sequestering it away for good.

The idea of focusing on biocarbon (sometimes called “biochar”) that eventually grew into Carbon Lock Tech started with the UN Climate Change Conference COP21 and the Paris Agreement. While watching the conference, he heard the French AG minister mention “biochar.” Soon after, he began researching the topic further to find out more about the carbon offsetting made possible simply by putting more carbon in the soil.

Testing Process

Danner then bought some biochar for home use, successfully grew some plants, and was approached by a curious neighbour, whose uncles had designed and built a simple backyard kiln that could make biochar. “I still have it [the machine] at the farm. Do you want it?” the neighbour offered.

Ramping Up

Danner accepted the machine and, with co-founder Terry Gray, began making biochar in his backyard. They eventually brought on investors and hired a few engineers under the ECO Canada program and the NRC Industrial Research Assistance Program. Together the team designed and built a continuous model, secured a patent, and completed a pilot project. Through grant funding, they were able to hire more engineers.

Stepping into international expansion

Today, Carbon Lock Tech is advancing its technology and work with mining companies and concrete companies to explore sustainable applications for “locking” the carbon away. They are also searching for commercial partners, collaborating with international companies, and looking to participate in the carbon dioxide removal credit market. In fact, the company is in talks with a Silicon Valley carbon dioxide removal organization that’s considering signing a CDR credit agreement.

This would be the very first agreement, and the team expects to see more and more of these over time.

This business venture hasn’t gone unnoticed. Carbon Lock Tech won the Startup Canada Pitch event earlier this year, and are set to compete live against nine other finalists for $70,000 this October.

Current challenges and goals for the future

Carbon Lock Tech is an international startup creating technologies and carbon removal services for a global market. So, it’s crucial to get a good handle on navigating global trading systems, complex business landscapes, and diverse cultures. In addition to that, there are other challenges to consider.

Building a cleantech startup isn’t easy by a long shot, and it takes a considerable amount of time and sustained hard work to take a venture from a concept to a profitable company. But the biggest challenges arise when one or more of the following factors is missing:

• Access to smart, patient capital.
• Support from funding programs and stable government policies.
• Market demand from end users.

As for the goals going forward, it’s all about scale and impact.

“From here, we are looking to scale this to the megaton scale. And then, who knows, eventually the gigaton scale, which is where the world has to get if we want to make it to net zero by 2050.”

As you can see, the goal is to make substantial change on a global scale.

A primer on Carbon Dioxide Removal (CDR) credits and how they work

Carbon dioxide removal (CDR) credits are service exports where a company sells the service of carbon removal to firms in other companies or governments around the world. These buyers seek to purchase such credits in order to offset their own emissions or meet climate targets.

CDR credits are similar to traditional carbon credits, which have been in existence for about 20 years, since the Kyoto Protocol, which worked to encourage innovation and efficiency by facilitating emissions trade within a cap-and-trade system or a government-regulated compliance market. The difference is the CDR credits can only be generated and sold by systems or technologies that remove carbon from the atmosphere, as opposed to emissions reductions or avoidance practices. It’s a distinction that makes a major difference, because there is no way to reducing the total amount of carbon already in the atmosphere other than carbo dioxide removal.

Today, the CDR credit market is a voluntary market where businesses that want to reach net zero can purchase credits from carbon removal businesses. Unlike cap-and-trade and government-regulated markets, the voluntary market is only a few years old – major tech players like Google, Microsoft, Shopify and Facebook participate strongly in this market.

Companies typically pre-buy CDR credits as either an offtake agreement or advanced market commitment. They sometimes pay for the credits upfront so that the CDR companies can accelerate their technologies – they then enjoy priority access to the first credits produced.

Carbon removal certification and government intervention

Puro.earth is a Finland-based registry that certifies carbon removal suppliers according to their “Puro Standard.” NASDAQ just bought the company, so stock markets are getting involved.

These international markets exist without relying on national policies or structures. So, any Canadian company could generate CO2 removal credits and sell them to any other company, or country, regardless of their location. Therefore, this is a market mechanism as well as a service export.

Kevin Danner weighs in on standardization in this area, saying that, “if governments are able to create the policy framework around this to bring more standardization, more rigor, I believe that will strengthen the markets, and that’s already happening in Europe and to some extent in the U.S.”

Though policy isn’t necessary for scaling up in this industry, standardized government frameworks could be beneficial. It could enable the integration of funding across agriculture and economic development, as well as Environment and Climate Change Canada.

Building a policy infrastructure in the carbon dioxide removal space could position Canada as a trusted provider of sequestered carbon and bring substantial revenue to the country from the production and sale of carbon credits.

The international sale of carbon credits

Selling carbon credits internationally can be complex, given the variety of markets, regulations, and types of credit systems. Certain regions have cap-and-trade mechanisms. Others have internal compliance markets. Still others are developing credit registries that act as clearinghouses – once credits are registered, they can be purchased and retired, preventing resale and ensuring no double-counting. These latter are important, because while small-scale transactions can be easy and informal, large-scale carbon transactions require formal registries and life cycle analyses. These analyses evaluate:

• Feedstock origin
• Transportation emissions
• Sequestration timeframes
• Technology verifications

A proper registry ensures that the credits reflect the actual amount of carbon sequestered.

Reporting and verification: Registries require rigorous reporting and verification to maintain the quality of biocarbon production, including sample validation and machinery checks.

Carbon accounting: Carbon accounting firms help companies measure their emissions and balance them with credits to achieve sustainability goals.

Government requirements: Governments may soon mandate companies to register and report carbon usage. Proactive companies are already building a pipeline of credits to comply with anticipated regulations.

Planning for different domestic and export markets

Carbon Lock Tech sees the potential markets and product adaptations that could be on the horizon.

Like dollars, carbon credits are meant to be “fungible.” This makes for more straightforward transactions. Still, there will be projects that command a higher premium.

One example would be companies that work with a First Nation community to convert their waste into carbon and use it for water filtration. In this case, green jobs are created, and sustainable development goals are met. These projects will attract companies interested in both carbon credits and the ESG aspect.

Here’s another example – setting up a carbon removal facility in the Amazon could help the local community preserve their forest by helping them develop an alternative source of incomes – carbon removal credits. Forward-looking companies would be willing to pay a premium for such impacts that extend beyond carbon offsetting.

The challenge for Carbon Lock Tech will be in creating an effective export plan from assessing their target market to positioning themselves for a competitive advantage, and crucially, identifying relevant legal and regulatory issues.

Carbon Lock Tech is at the forefront of a global solution for climate change

To date, much of the focus on addressing climate change has been in the area of emissions reductions. This is critically important and needs to be a priority at every level of government. At the same time, the concept of carbon removal allows us to address  the climate issue head on, turning turn what would have been a risk into an opportunity. And the Carbon Lock Tech team is working to bring this opportunity to reality.

“In Canada we have a major advantage,” says Danner. “We have the knowledge, the technologies, the people, the resources, and the land. We can play a major role at the forefront of carbon dioxide removal, developing an entirely new industry capable of removing and sequestering gigatons of carbon, right here in Canada, and generating international revenues from it – if we do this right.”

Unsurprisingly, this year’s top stories included several focused on technology such as digital trade and AI. There was also a lot of interest in sustainable practices, tips for women leaders and the value that immigrant-led businesses can bring in Canada and beyond.

Enjoy this year’s top international trade articles.

1. 10 global trade trends we’ll be watching in 2023

10 global trade trends we’ll be watching in 2023

2. Why digital trade should be a cornerstone of Canada’s Indo-Pacific Strategy

Why digital trade should be a cornerstone of Canada’s Indo-Pacific Strategy

3. 7 emerging cleantech suppliers that can help you create a more sustainable supply chain

7 emerging cleantech suppliers that can help you create a more sustainable supply chain

4. Unpacking the Digital Transformation of Trade

Unpacking the Digital Transformation of Trade

5. How to Take Your Business Global – 5 Important Steps for Female Leaders

How to Take Your Business Global – 5 Important Steps for Female Leaders

6. Investing in immigrant founders to unlock the next generation of Canadian innovation

Investing in immigrant founders to unlock the next generation of Canadian innovation

7. 8 common global procurement mistakes made by small and medium sized businesses (SMEs)

8 common global procurement mistakes made by small and medium sized businesses (SMEs)

8.Top 10 things we learned at the WPO 2023 Entrepreneurial Excellence Forum

Top 10 things we learned at the WPO 2023 Entrepreneurial Excellence Forum

9. 5 ways AI is transforming international trade

5 ways AI is transforming international trade

10. Top 10 fastest growing international trade jobs in 2023

Top 10 fastest growing international trade jobs in 2023

As every year comes to a close we like to take a moment to look back at the key trade issues people were talking about – and therefore, reading about. It was another year of changes and uncertainty, which is likely why two of our most-read articles were about risk.

But it was also a year for plodding ahead and looking to a brighter future. People were reading about business planning, investment and negotiations in a changed global business environment.

What was also heartening to see was the interest in articles about investing in your personal and career growth. Two of our most-read articles were about career success and upskilling.

So without further preamble – here are the top 10 most-read articles of 2022. Read on, enjoy, and let us know what you think most people will be reading about in the year ahead in the comments.

1. 10 Global trade trends we’ll be watching in 2022

10 Global trade trends we’ll be watching in 2022

2. The most common forms of foreign direct investment (FDI), including ownership-based investments and investments based on strategic alliances

The most common forms of foreign direct investment (FDI), including ownership-based investments and investments based on strategic alliances

3. A Guide to Preparing an International Business Plan

A Guide to Preparing an International Business Plan

4. Identify and mitigate the 4 types of financial risk: commercial risk, foreign currency risk, country risk, and bank risk

Identify and mitigate the 4 types of financial risk: commercial risk, foreign currency risk, country risk, and bank risk

5. The 11 political risks that could sink your imports and exports

The 11 political risks that could sink your imports and exports

6. What should be on every bill of lading

What should be on every bill of lading

7. 5 Canadian Trade Commissioners talk about their career success

5 Canadian Trade Commissioners talk about their career success

8. Pros and cons of using subcontracting as a market entry strategy

Pros and cons of using subcontracting as a market entry strategy

9. Top 7 reasons to become a CITP according to CITPs

Top 7 reasons to become a CITP according to CITPs

10. 10 tips for negotiations in a virtual meeting environment

10 tips for negotiations in a virtual meeting environment

Whether you sell goods or services or both, there may be tremendous opportunities for you to grow your business outside of the domestic border. In fact, going global can make you more efficient, make you more competitive and make you stronger.

However, if exporting were easy, every company would do it, so it’s crucial to understand what’s involved.

During this series, we will provide an outline of some of the risks of going and growing globally, as well as a high level “A to Z” of exporting – everything from assessing your company’s export readiness to planning and researching market entry, finance and marketing.

FITT experts:

Daniel Lewis CITP, Founder – Daniel’s Chai Bar, Author, International Speaker

Marvin Hough CITP, President – MIRA Limited

Lora Rigutto Vigliatore CITP, Loyalty and Engagement Manager – FITT, International Business Instructor

Assessing your company’s export readiness

Feasibility of International Trade

When we talk about feasibility of international trade we’re principally referring to three broad components:

• Export readiness – does your venture have the resources required to venture into foreign markets?
• Choosing your target market – where should you start?
• Suitability of your products and services – is your product or service suitable for your target market, or do you need to modify it in some way?

The first step in assessing your export readiness is to do a SWOT analysis – you must assess your strengths and weaknesses and figure out your gaps.

The second step is asking yourself those tough questions – why are you exporting, who is going to get the work done, and are you really ready?

Daniel, can you tell us about your company’s journey to importing and exporting, and how you determined when you were ready to go global?

The thing I like to say is that we started exporting accidentally, and then we learned how to do it the right way, so a lot of what I learned was by mistake.

When we started our company, our focus was on how we could positively impact the community that we’re in, which was working. But then it got to a point where the people that we were impacting in our local market well, they have family that visits from international locations, and when they would experience our brand and our products we started to hear the questions like “do you ship to the U.S., to Australia, Japan?”

When you keep getting those questions then you start to ask, is there business potential elsewhere? That’s what started to happen for us. We started to sense a demand, especially from the U.S., for our teas and we had to start thinking about how to get it there. So we had to figure out packaging and how to ship it – what were the documents that we needed.

We made a lot of mistakes in those early stages, until we started to learn from those experiences and get our feet on solid footing.

We also started to learn that in the U.S., which became one of our big markets, it’s very different than Canada. People are different, the buying decisions and motivations are different, and we couldn’t just copy paste what was working with our Canadian market. Eventually we tapped into resources like FITT to learn and refine that process.

What were some of those gaps that you had to address before you could make that leap to a new market?

 One of the biggest gaps for us was, from our company’s inception, we branded ourselves as a company who uses tea as a tool to impact people’s lives in a positive way, so in our marketing we put our mission before our product. And that resonated very well here in Canada.

But when we went to an international market, like the US, they didn’t really know us, and that connection was not the same. We had to find a strategic way of turning that around and creating a product focus. It was the complete opposite of how we were branding and marketing ourselves originally.

Marvin, how do you assess or help your clients evaluate their own export readiness?

You know in Canada, we have about a million SMEs and only about 4% are actually exporting. And out of those about three quarters sell into the United States. Going global for an entrepreneur or startup SME is really challenging, but it’s also really There are three pieces of good news I want to share:

1. There are more groups available now to help entrepreneurs than ever before. FITT and Startup Canada are both excellent examples.
2. The digital revolution has created an easier path into markets.
3. Startups can be very flexible and agile and being able to pivot and change the way you’re operating is really, really important.

I put my clients through a readiness checklist that can be quite extensive. I’ll mention some of the points that I think are really important that companies look at. Number one is management’s commitment to the export field.

I’ve seen companies say they’re ready and they want to go at it, but two months later, they come back and another project has taken priority. To tackle international markets, companies have to be sure they’re committed from the very top.

The second part is foreign market research. You can do a lot of this online now, which makes this much more accessible.

Thirdly, having the financing setup and support is important, whether you have to adapt your products or just completing an order. So many companies I’ve seen are stretched too thin, and they’ve got an export order but they lack that risk management.

As you enter a market you’ll often be relying on an agent, partner, or distributor. It’s so important to do the full analysis and fully vet your partners.

There are many other items on the export readiness checklist – from getting the right freight forwarder to understanding the promotional material requirements in your target market.

A great resource I’ll point out is on the Trade Commissioner website  – there’s an export readiness quiz that you can complete to assess all these readiness factors.

And if you don’t have an answer to some of those questions, or the answer is no, then consult with consultants, and CITPs, and seek training resources like the workshops and courses provided by FITT. The Situational Analysis workshop and Feasibility of International Trade course in particular can help on the preparedness side.

EDC, is also a good resource for companies that are assessing if they’re ready to export.

But as mentioned, sometimes an export order comes out of the blue and all of a sudden there’s an order coming in from a new market. That can be an exciting and overwhelming situation, but it’s also a great learning experience because startups have the agility to learn and adapt quickly. Daniel and his company are a great example of that.

You’re never too small to start exporting, you just have to know where your gaps and tap into the right resources that can help you.

How do you determine which markets to start exporting to?

I caution companies to get focused on their target market and don’t take on too many markets at the same time. That can often be a recipe for disaster.

As mentioned, many companies start exporting to fulfill orders that have come to them through e-commerce or a random request in their inbox. But there can be a tremendously steep learning curve.

The vendor may not be set up to ship internationally and may not understand customs procedures or local requirements for labeling and packaging.

So, if we take that strategic approach to market expansion, are there certain types of markets that are good testing grounds for first time exporters?

Many Canadian businesses start their international expansion in the United States where there’s cultural affinity and we conduct business in similar ways.

One resource that comes to mind is called the New Exporters to Border States (NEBS) program run by the Ontario government which helps businesses who are exploring the U.S. market. If a company is going through the readiness stage, they can go to the U.S. for a two day program and get all of the details about crossing the border from currency exchange to tax and legal issues.

Through this program the businesses can gain that knowledge firsthand, they can for example, go to Buffalo for two days and meet with all of the officials who can help facilitate the logistics in that market.

There’s a plethora of information online through government websites here in Canada, and I find industry associations have really good information on foreign markets for companies looking at getting into a sector.

But then there’s always those unexpected orders that come and companies have to evaluate them. Having somebody focused on the research is very important, whether that’s an internal employee or engaging a consultant to do that.

Hiring a research consultant can be extremely important, in my experience, for a smaller company.

Daniel, you mentioned, you started your company’s exporting journey in the United States because of unplanned opportunities to fulfill orders from word of mouth.

Was exploring that market also a strategic choice or was it just because of that unexpected demand coming in?

I was not strategic at all, I was just reacting to those opportunities. And that’s a place you don’t want to find yourself in when it comes to exporting.

So often in business, you have this checklist and this plan, and then boom! Something else just side tracks it. That’s what happened to me in many cases, and I was not necessarily ready.

For example, I’m also an author and with my book sales, I said “I’m open to the world!”

I learned you have to be careful of just saying that you’re open to selling internationally, because I was selling my book for $9 and I got an order from Vienna. Long story short, by the time I shipped that and got it to the customer it cost me $85. It was either that, or they had to wait like five months to get the book.

Logistically for you, you need to know if you are entering the best market from a sales and marketing standpoint. Explore where there are trade agreements between your home country and that market or that country that you’re trading into.

We didn’t know about the HS codes that we needed to declare and put on our packaging, and we got hit so hard with this influx of information that we weren’t prepared for.

If I was to do it again, I would have found people who have experience – and I would have started with FITT courses and the Trade Accelerator Program.

These kinds of resources have helped to make me aware of the things that I don’t know about exporting and importing.  And that’s what I didn’t do before, so if I was to do it over again, making that commitment from a management standpoint to do the research, learn about the shipping logistics.

Start by getting training, attending workshops virtually, doing your online research, reading books – it will all make you feel so much more ready and give you a psychological confidence to start exporting.

Before I did that, I was getting to a place where I didn’t want orders to come in anymore, because I felt like I was just going to mess it up. But once you feel ready, you get more aggressive in doing business and getting sales and facilitating those orders. Then your customer service kicks in and that’s when business starts to thrive.

Something that sometimes happens when companies enter big markets – it’s that idea that a big country like the U.S. or Mexico is one market. It’s a fallacy, I’ve seen so many companies think that they’re into the market and really they’ve only got a little bit of a foothold in a particular city. We have to realize that there are difference markets within these big countries from region to region and different cities. That has to be explored as part of your analysis.

I’ve been teaching here at the Telfer School of Management and in the MBA programs in many universities. Within these types of programs the students often undertake international research projects for companies as a learning experience. These can be a sort of a free service, and a great resource that I would highly recommend to assist with your market research and analysis.

Stay tuned for the next article in the Ready. Set. Export. series – “Adapting your products and services”

Even when conditions indicate that a potential market might be suitable, certain political and legal issues—such as import restrictions or lack of copyright protection—could make the market less attractive. When trading with another country, organizations are directly influenced by the political, legal and business conditions of that country. A crucial step in deciding whether a new international market is a feasible one for your business to enter is to identify and analyze any possible political risks. The first step in analyzing political risk is to collect and review as much of the relevant data related to this target market.

Review historic and current data related to political risks

The following 11 potential political risks can be identified and evaluated through research:

1. Political instability: A country’s level of political instability is determined by the likelihood that its government will be destabilized or overthrown by violent or unconstitutional means, such as terrorism and civil war. This instability can include a rise in nationalism, civil unrest and labour issues. It can result in frequent changes to the legal requirements, destruction or appropriation of property or goods, inflation volatility, rapid price rises and a decrease in the quality of life for the country’s inhabitants.

2. Political cycle:  The timing of the election cycle may have a bearing on the launch of a new international trade initiative, especially if there is the potential of a change in the type of political leadership, such as from dictatorship to democracy.

3. Hostility to foreigners, foreign trade or foreign investment: Some countries openly welcome foreign trade and investment by offering incentives or beneficial tax reductions. However, in other markets, discriminatory legislation, trade barriers, “buy-national” procurement policies, quotas and tariffs are applied to foreign organizations.

4. Corruption and control over commerce: In some countries, control over commerce can lead to situations in which organizations feel pressured to befriend, persuade or even bribe officials in order to secure the permits required to conduct trade. However, gift giving and bribery can result in severe criminal and civil penalties.

International trade research helps identify markets in which organizations are likely to face trade barriers unless they or their representatives act in an illegal manner.

5. Weak legal protection for property and Intellectual Property rights: In countries with weak protection for property rights, there is an increase in black market activities (e.g. where illegal copies of products are being manufactured, distributed and sold in a foreign market with the consent of the intellectual property owner). Organizations are wary about investing in such countries because of the possibility of large property losses when property is stolen or misappropriated without recourse or when contracts are not honoured. Intellectual Property rights are also important. The degree to which Intellectual Property is protected influences the flow of innovative ideas and creation of new products in a  country, which impacts creative and economic wealth. Intellectual Property includes inventions, literary and artistic works and symbols, images, names and designs used in commerce.

Looking to determine if your new trade opportunities are viable? Check out the FITTskills Feasibility of International Trade online course!

6. Legal restrictions on trade: These restrictions can apply to both the import and export of goods and services.

In 2021, Pacific Gateway Holdings,  a  seafood  importer  in  British  Columbia,  was  fined  CDN  163,776  for  importing  endangered  eel  species  products  from  a  supplier  in  Xiamen,  China.  The  company  had  declared  that  the  shipping  containers  contained  American  eel,  but  five  of  seven  containers  that  were  inspected  were  found  to  also  contain  a  percentage  of  European  eel  meat  (which  is  not  legal for importation). The shipment, which was valued at roughly CDN  400,000,  was  also  seized  by  the  Crown  at  the  border  and  ultimately scheduled for destruction.

7. Legal requirements for business registrations, incorporation, local partnering or other types of  performance: Because a company’s legal structure has an effect on liabilities and taxes, it is important to consult with a tax accountant and legal expert to investigate each form of legal structure before making a decision. Organizations must also ensure that they adhere to all legal requirements and payments.

8. Tax regimes: Tax rates on identical items vary from country to country and sometimes even between regions within the same country. A country’s tax practices might be unusual or complex. If tax treaties between a foreign country and a company’s home country are not established, a foreign company might have to pay tax twice (i.e. they may have to report, and be taxed on, earnings in both countries).

9. Relationships with other countries: It is important that an organization is aware of the relationships the target market has with other countries, including alliances and conflicts. For instance, if an exporter sells a product to a country that is known to then trade that product to a country with international sanctions against trade in that product, the exporter may face legal consequences.

In 2021, Biomin America, a company based in Kansas, U.S., agreed to  pay  a  penalty  of  USD  257,862  to  the  Government  after  being  found  to  be  in  violation  of  the  U.S.  Department  of  the  Treasury’s  Office  of  Foreign  Assets  Control  (OFAC)  regulations.  Although  U.S.-based  companies  can  sell  food  to  importers  in  Cuba,  the  United  States  carefully  regulates  and  monitors  all  shipments  to  the  country  so  a  permit  is  required.  In  this  case,  the  shipments  to  Cuba  were  actually  made  by  subsidiaries  that  Biomin  America  owned  in  other  countries  and  the  goods  were  not  produced  in  the  United  States.  However,  since  the  companies  involved  were  owned  by  the  U.S.  parent  company,  a  permit  was  still  required,  and since it had not been obtained, the company was penalized.

10. Infrastructure failure: It is important to consider the potential of infrastructure failure for government-owned assets such as electric power and transportation.

11. Cultural misunderstanding: Organizations must always be aware of the potential for cultural misunderstanding in business dealings.

This information will have been collected in the research phase. An excellent source for this type of information are country reports, many of which are free or available at low cost.

Organizations, especially larger companies involved in complex trade deals, may also hire specialists in the political risk analysis to complete the research and target market analysis. These specialists provide reports and recommendations that inform business planning decisions.

It is critical that organizations identify the requirements of the target market and their own countries. Misinterpreting these requirements can lead to difficult situations – for example, you could be required to remove a product, such as veterinary products and live animals, from a foreign country that cannot be re-admitted to your own. Once  the  information  is  collected,  you can identify  the  key  areas  of  concern and measure the probability of occurrence of each risk and the potential impact your  business  activities.

This factor distinguishes them from indirect investments in securities, bonds, funds, or currencies. Understanding these different investment options is critical to researching which ones best suit a given organization, target market, and/or venture.

Ownership-based investments

One type of foreign direct investment is based on establishing an ownership position over an asset or assets. The following are some of the most common types of ownership-based investments:

Greenfield

The investing organization establishes a completely new operation in a target market, building it from the ground up.

Brownfield

Similar to Greenfield, this is an aggressive market entry strategy. Brownfield investments are an acquisition of existing facilities in the target country. Often this strategy involves some site remediation, such as the clean-up of soil chemicals.

Acquisition

The investor purchases an existing operation in the target market.

Joint venture

The investor identifies a partner with complementary capabilities, and they set up an entirely new operation in the target market, each of them owning a stake proportional to the value of their original contribution. The original founding organizations continue operations as entities distinct from the newly formed joint venture.

Merger

The investor identifies an operation with complementary capabilities, and the two organizations abandon their original distinct identities to join forces into a single, combined new firm. Situational Analysis

Looking to determine if your new trade opportunities are viable? Check out the FITTskills Feasibility of International Trade online course!

Investments based on strategic alliances

This is a category of investment in which resources are contributed directly but do not create a distinct asset. Usually, such investments create partnerships in which the relationship is the only real asset. Investments based on strategic alliances are as follows:

Supplier alliances

Many organizations are investing in stable long-term relationships with suppliers of parts, technology, equipment, or other key inputs. Such investments require more than simply entering into a long-term supply contract. In many cases, they involve harmonization of standards, agreements on quality control, and integration of manufacturing and delivery processes. In technology-driven industries, supplier alliances can include agreements to share research and development (R and D).

Research consortium

There is a growing number of organizations in particular sectors pooling their R and D efforts to improve their ability to face related challenges. In some cases, such consortia focus on developing common standards that allow products to interconnect and interact. In others, they organize something akin to a division of labour by apportioning research tasks to the consortium members best able to carry them out. This can be significant internationally if organizations from different countries bring different kinds of expertise into a relationship.

Co-marketing alliance

Some organizations enter into an agreement to market each other’s products or services as part of their own set of offerings. They do this to fill out product lines and to provide consumers with a comprehensive offering. When the two organizations operate in different countries, this type of arrangement allows one to sell its products in the other country without setting up its own marketing organization. Such arrangements are not cost-free; partners must invest not only in making the relationship work but also in costs such as relabeling and rebranding.

Co-production alliance

Just as organizations exchange marketing services, they can also exchange production facilities. Rather than shipping finished products to a distant market, an organization can enter into an alliance with a local manufacturer to assemble components or manufacture a complete unit according to original specifications. Again, this can be a cost-effective way of entering a market, but it requires an investment in the relationship as well as in the transfer of knowledge, skills, and design.

Bidding consortium

Perhaps the loosest form of strategic alliance occurs when organizations enter into a consortium to bid on a project that none of them could carry out individually. Such consortia are very common in large international infrastructure projects. Even though the organizations retain their distinct identities, entering into a consortium does require some longer-term commitments, especially if the bid is successful and the winners are obliged to work together for several years. The simple fact of participating in a bid can require a significant investment of time, human resources, and money, especially if bid bonds are required.

One of the most important skills to learn in business is negotiating. It’s an art that you must master to gain partnerships and clients, and conduct business well. However, when it comes to doing business with companies in other countries, or international negotiation, you’ll have to take your negotiation skills to a whole new level.

International negotiation can feel daunting and uncomfortable at times. One small, innocent mistake or misunderstanding due to cultural differences can jeopardize an entire deal. Fortunately, there are specific ways you can avoid these mistakes and prepare for international negotiations, so you can successfully close your business deal.

Educate yourself on the culture

Before you step into the meeting room to start negotiating with an international client or company, educate yourself on their culture. This world is beautifully diverse with different people and customs, and it’s important to be aware and considerate of them. Not only does this broaden your mindset, but it also shows that you respect others when you acknowledge their culture.

The first things you should learn are their traditions, etiquette, mealtime rituals and customs, greetings, and overall mannerisms. This is especially important when enjoying a business meal or hopping on a Zoom call with an international client, as some things that may be traditional in your culture are seen as offensive in others. Knowing this essential information will put you far ahead of other businesses dealing with international relations.

Learn more about conducting business in international markets with the online FITTskills course Feasibility of International Trade.

Body language does most of the talking

Have you ever noticed that you can tell when two people are arguing or upset with each other even if they do not understand what they’re saying? This is because we can read their body language and understand the emotions they’re feeling.

You may be surprised to learn that most of our communication is done through body language. How we hold our hands, the expressions on our faces, and even how far we stand apart from someone can hint at how we are feeling.

According to Dr. Albert Mehrabian at UCLA, 7% of our communication is done through spoken word, 38% is through tone of voice, and 55% is through body language. Studies have also shown that people who are more animated when they speak, such as those who use their hands or put up their fingers when talking about numbers, retain people’s attention longer.

Since body language is our main form of communication, it’s essential to learn about certain gestures and mannerisms of the culture you’re going into international negotiations with. A simple gesture in your culture may mean something completely different to other cultures.

Mastering microexpressions

Microexpressions are a universal way of communicating through body language. Darwin first noticed these involuntarily facial expressions and across different cultures. It was Dr. Paul Ekman who then proved Darwin’s theory and found the display of emotions such as anger, fear, disgust, happiness, sadness, surprise, and contempt were the same for most people.

Understanding and identifying these microexpressions can make international negotiating much easier because of their universality. Pay attention to your counterpart’s face and keep an eye out for these microexpressions while negotiating for insight as to how they’re feeling.

Handshakes 

In most cultures, handshakes are used when first meeting someone or at the start of a business meeting. However, the type of handshake and the rules around them differ.

A firm handshake is preferred in the US, Canada, and Brazil, while in Europe and Asia, a looser handshake is often used. In Turkey, firm handshakes are actually considered rude.

It’s also important to note that women in Australia generally do not shake hands with other women, and women and men generally do not shake hands in Islamic cultures [1].

Personal space

The distance between two people is also different depending on the culture.

North America, Northern Europe, and Asia tend to keep a further distance and have less contact with people. Those in Southern Europe, the Middle East, and South American prefer standing closer together and having more contact.

Eye contact

If you’re a seasoned negotiator, you know just how important eye contact is when speaking with someone and know you must balance just enough eye contact. In fact, some cultures in the Caribbean view too much eye contact as aggressive.

A good rule of thumb is to maintain eye contact 50% of the time when you’re speaking and 70% when someone else is speaking.

Politely probe for more information

While body language greatly contributes to communication, speaking is just as important. Even just the tone of our voice is important to consider when negotiating with international clients. Some cultures tend to speak softly and maintain calmer conversations, while others, such as Italians, tend to talk at a higher volume and interrupt each other.

While how you probe depends on where you are and to whom you are speaking, asking questions is an essential phase of negotiating as it is the most impactful way to gain insightful information from your counterpart. It will help you discern their needs and thoughts. Not to mention, doing so gives the other side a platform to speak, which is a great way to build relationships.

Prepare your questions ahead of time and be sure your questions are appropriate to ask in their culture. A quick rule of thumb is to start broad, flush out all the key aspects of importance to the other side before you dig into a specific issue, and try to use open-ended questions whenever possible.

Concluding your negotiation

The end goal of any negotiation, international or domestic, is to reach an agreement that benefits both parties. Before entering the negotiation, have an idea of what your end goal is; what will be the outcome if your negotiation is successful or not?

Be strategic when you propose your offer. A quick tip is to be specific with your numbers as that indicates to the other side that your offer is well thought through. And, avoid ranges, as the other side always hears the side of the range that is most advantageous to them.

Become successful at international negotiation

International negotiations aren’t easy, but you will be more successful if you prepare for them. Ultimately, in any situation, the best negotiators are those who are well-prepared; they ask insightful questions and propose solutions that maximize their share but still satisfy the other side. In international negotiations, you just need to add an additional step of preparation to demonstrate respect for the other party. Do this, and you will find negotiation success.

Learn how to accurately determine if your business is prepared to venture into new markets with the online FITTskills workshop Situational Analysis.

[1] Lares, Cochran, and Digan (2021). Persuade: The 4-Step Process to Influence People and Decisions, Wiley, 161.

Trade-related organizations play a critical role in ensuring the viability of businesses all around the world. They set and create needed median standards for all trade professionals and the broader business community. This community benefits from the comprehensive and strict oversight in regards to rules, laws, regulation and access to trade and business-related resources.

The Forum for International Trade Training (FITT), for example, has developed global competency standards for the knowledge and training required to succeed internationally, supported by educational credentials and the CITP®|FIBP® professional designation. In this way, we ensure that professional standards and educational resources are always relevant and current for the changing needs of international trade.

In the same way that our organization creates fair and formalized standards and processes for trade training, other trade organizations set standards for the global community in a broad range of other categories. Most people recognize the names of the organizations such as the World Trade Organization (WTO) and the International Monetary Fund, but may be surprised to find out that there are many others.

What are the other key organizations that international businesses and business people should be aware of and how exactly do they govern trade and impact international businesses?

To help answer these important questions, we’ve compiled a quick guide to international trade organizations that touches on some of the most important players and how they influence international trade and business ecosystems. Here they are:

World Trade Organization

Since 1994, the World Trade Organization (WTO) has worked to maintain open lines of communication regarding international trade with its 164 member countries. It oversees existing trade agreements, ensuring that countries are upholding the terms of their agreements, and also helps settle disputes about those agreements.

The WTO also helps countries negotiate and forge new agreements, and it calls out unfair trade practices. With its current membership, the WTO serves all major world economies. Through the WTO, international businesses and organizations can find data and regulatory information related to trade.

International Monetary Fund

While the WTO focuses on supporting the international economy by facilitating trade, the International Monetary Fund (IMF) focuses on establishing sound monetary and economic policies to support the global economy. To do so, the IMF monitors economic policies within its 190 countries to identify potential risks and provide advice. IMF also issues loans to countries to help stabilize economies and provides training programs that help countries modernize their economic policies and workforces to spur economic growth. The IMF also upholds the system that allows for foreign monetary exchanges.

World Customs Organization

The World Customs Organization (WCO) brings customs officials from around the world together to work toward making customs processes easier to navigate for international businesses. It also influences the WTO’s rules of origin and customs valuation processes. International businesses may recognize the work of the WCO through the Harmonized System—the numeric system that is now used by more than 200 countries to help code and classify internationally traded goods.

International Chamber of Commerce

While the above organizations deal with world governments,

the International Chamber of Commerce (ICC) represents companies that do business on an international scale. The ICC seeks to promote the free trade of goods internationally. It advocates on behalf of businesses to the WTO, United Nations and other organizations that affect international trade and business.

Organizations for trade development, trade law, sea and air transportation and economic funding

There are many other organizations that enable international trade and support businesses that trade globally. The United Nations Conference on Trade and Development (UNCTAD) helps developing countries find entry points to international markets, and the United Nations Commission on International Trade Law (UNCITRAL) brings nations together to modernize their economic policies and workforces to spur economic growth.

For shipping companies, the International Maritime Organization and the International Air Transport Association provide guidance and support to marine and air logistics companies, respectively. Meanwhile, The World Bank seeks to reduce poverty globally by offering loans and other support to developing nations.

All of the organizations that impact global trade play specific roles in creating a healthy international economy. While they are all separate, they also coordinate their efforts and support one another to reach their common goals.

Want to learn more about international organizations and business law? Read our article The role of international organizations in international business law.

As many businesses begin their recovery efforts, a cascade of questions are top of mind. This is new territory for everyone. Where are the opportunities for growth and expansion? How do you approach business development? What should my recovery to growth plan look like?

To answer these questions we turned to a team of diverse experts in last week’s #TradeElite Twitter chat. Their insights were informative, practical and inspiring. Read through their responses below.

Topics covered:

• New global business landscape: changes in policy, market access, disruption
• Today’s opportunities for global growth
• Latest digital tools for global business 
• Global business recovery -> growth action plan
• Restarting business development efforts
• Biggest lessons learned that businesses can use to protect their futures
• Future global growth opportunities

Panelists:

Rad Dockery @Rad_Dockery Chief Innovation Officer, Unifai Solutions

Amy Karam @AmyKaram Founder, Global Competitive Strategy Consultant, Karam Consulting, and China Trade Expert

Craig Atkinson, CITP @CraigAAtkinson Trade, Technology and Sustainable Development Specialist, Founder of Lexmerca International Trade

Paula Greene, CITP @PaulaIntlMkt President & CEO at BEYOND Ventures Group Inc., Export Entrepreneur and Business Developer

Bernadette Fernandes @On_the_Varanda Global Connector – International Trade & Development, Founder & CEO of the Varanda Network

What is the “new global business landscape” we are looking at today? What has changed in terms of policy, market access, and disruption?

Q1. EDC forecasts global growth at 1.6% in 2020—the worst performance since 2008, they expect a substantial increase to 5.3% in 2021. We need to be in the forefront. #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) June 25, 2020

A1: Much has changed on the #policy front. @WTO #TFA came into effect over 2 years ago. #Tech for #trade is proliferating. Cost-effective and rapid movement of goods can have as much to do with a product’s #data as with a product itself. #TradeElitehttps://t.co/HsNwhsAwGT

— Craig Atkinson (@craigaatkinson) June 25, 2020

Clearly, #COVID19 has altered the global landscape significantly. As the level of infections varies across our major trading partners. And in emerging markets. #TradeElite

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A1: it’s the new old… not the recent but the very old, where travel was a tool for international trade. All has changed but not all bad. Policy is being adjusted; market access is now based more on existing relationships/networks; disruption is everybody’s business #TradeElite https://t.co/VTVGwkY3z0

— bernadette fernandes (@on_the_varanda) June 25, 2020

Trade diversification is being highlighted as a necessity not a novelty. #geopolitics rule and companies cannot afford to be dependent on the cheapest or low hanging fruit option #tradeelite https://t.co/1Px5iAC6Ft

— Amy Karam (@AmyKaram) June 25, 2020

We are also seeing more nations become more nationalist when it comes to procurement. The global Supply Chain is being questioned. As we see in Japan, where they put away substantial amt of funds for Japanese firms to diversify away from Chinese based Supply Chains #TradeElite https://t.co/2LM8XnrCCL

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A1: Disruption caused by the pandemic is forcing the digitalization of #trade faster than expected. Non-evidence based policy / protectionism is hurting some of former leading nations. Fragmentation and convergence are norm. Tariffs in the media, but NTBs are problem. #TradeElite

— Craig Atkinson (@craigaatkinson) June 25, 2020

Market access has also changed. For instance, we had to cancel a couple of trips to @ASEAN due to Covid19. And to adjust the service delivery model for a project. Remote work plus remote access to critical data infrastructure is new for many emerging markets. #TradeElite # https://t.co/2LM8XnrCCL

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

…and that impacts the trust factor that is very important for #emergingmarkets customers #tradeelite https://t.co/5MCAeBKLsr

— Amy Karam (@AmyKaram) June 25, 2020

Lots of interesting insights coming in already. We’re hearing that:
Policy has been changing a lot over last few years
Tech and data are huge for supply chain efficiency
Diversify, as political climate is changing
Disruption everywhere#tradeelite

— FITT (@FITTNews) June 25, 2020

Very broadly, for businesses that may be in recovery mode, where are the opportunities for growth today?

A2: opportunities are where you create them 1) develop a growth plan as you may have to abandon recovery; 2) implement the plan… slowly and wisely; 3) have check-points often to ensure the opportunities are still in your line of sight… you may have to shift/pivot #TradeElite https://t.co/Ao9Sy8YSj6

— bernadette fernandes (@on_the_varanda) June 25, 2020

There are many opportunities. But first, organizations have to ask themselves are they truly ready? Do you have not only the technical/business but the CULTURAL ability to perform in a Global Market. #tradeelite #BussinessGrowth #globalbiz #cdnbiz @CanadaTrade https://t.co/ccO6RcbxeH

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A2: Opportunities are in the #knowledge based industries #tradeelite https://t.co/9XGBLnGoGy

— Amy Karam (@AmyKaram) June 25, 2020

A2: The opportunities for growth are in new markets. Diversification must also be top of mind when considering lack of response in some countries to pandemic/natural disasters. Canadian ?? business needs to think about non-traditional #markets and #trade partners. #TradeElite

— Craig Atkinson (@craigaatkinson) June 25, 2020

#DigitalTransformation which has been mainly an overly used term, is now being taken more seriously. And it has many elements! From Skills, culture, management, politics, finance and obviously Technology #TradeElite #businessgrowth #Globalbiz #cdnbiz https://t.co/ccO6RcbxeH

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A2: If you are looking to export markets, look at where they are in flattening the curve, those experiencing high incidences may not be receptive. Where they are recovering , an opportunity #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) June 25, 2020

We also have found that Supply Chain visibility has become a huge issue. This applies domestically and globally. If one offers products/services that can improve #SCM visibility, there are opportunities. #TradeElite #businessgrowth #globalbiz #cdnbiz https://t.co/ccO6RcbxeH

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

Looking at innovative ways to deal with #inequality is also an opportunity. #Covid19 has underlined how many global citizens are on the edge. We have received calls from West / East Africa on this topic since we won our deal in Indonesia #TradeElite #businessgrowth #globalbiz https://t.co/ccO6RcbxeH

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

Forrester’s analyst Joana de Quintanilha said that companies should be measuring the customer journey to listen to their needs all along the buying process, and she mentioned Customer Effort Score for that purpose, for example, and constant micro-surveys. #TradeElite #globaltrade

— Sandra Cravero | 4/5 replies from ? marketing (@sandracravero) June 25, 2020

Where are the opportunities for global growth? We’re hearing:
?Knowledge-based industries
?Collaboration
?Digital tools/transformation
?New markets who are flattening the curve #COVID19 #TradeElite
Are we missing any?

— FITT (@FITTNews) June 25, 2020

We are hearing a lot about technology applications. What are some of the most relevant digital tools that can give global businesses a competitive edge?

A3: technology applications are a dime a dozen, too many to mention with #DigitalTransformation; it’s no longer about the tools but about how quickly and effectively you can adopt, integrate and transform for competitive differentiation #TradeElite https://t.co/ZUXB8xFuwe

— bernadette fernandes (@on_the_varanda) June 25, 2020

A3: The most relevant digital tools that can give global businesses a competitive edge – the tools easily used by your customers and the target market. #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) June 25, 2020

A3: On the research front, can’t beat @ITC_MktAnalysis tools. Otherwise, #singlewindow platforms req. under @WTO #TFA is helping traders to more efficiently comply with rules of different ministries (eg #customs + #ag). #Paperless #trade #TradeElite https://t.co/NIQDtKfQXn https://t.co/zijlsptwwl

— Craig Atkinson (@craigaatkinson) June 25, 2020

A3. Familiarize yourself with multiple platforms, make it easy for your prospective client. #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) June 25, 2020

An internal data strategy is key. What your sweet spots? Where have you and where can you deliver the most value. Internal data analytics here is crucial. Don’t guess at what you are good at. KNOW IT! #DataAnalytics is CRITICAL! #tradeelite #globalbusiness #cdnbiz https://t.co/vDk6XLF0Mj

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A3: that’s bang on @PaulaIntlMkt , can’t go wrong being customer centric even when it comes to digital and especially our own competitive edge! #TradeElite https://t.co/JFbphEBu3s

— bernadette fernandes (@on_the_varanda) June 25, 2020

Building secure 2/3 way platforms will also allow more seamless interaction vs. only email. This is where technologies like #smartcontracts may finally take off. #digital #tradeelite #globalbusiness #cdnbiz https://t.co/vDk6XLF0Mj

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

What are the best digital tools for global growth?
We’re hearing:
?No specific tools effective adoption
?Internal data analytics
?Tools that help your customers
?Agile inventory management
?3BL framework
?@ITC_MktAnalysis tools
?#singlewindow platforms #tradeelite

— FITT (@FITTNews) June 25, 2020

What should be included in every global business’ recovery -> growth action plan?

A4: top of my list to include is a new business mentality, an attitude shift to recovery, from survive mode to thrive mode; but also a coming to terms with the fact that you may not be recovering but rather pivoting, developing a completely new action plan for growth. #TradeElite https://t.co/Lz0qzxOMPo

— bernadette fernandes (@on_the_varanda) June 25, 2020

A4. Research, vet and validate your prior business plan either confirm information pre #COVID19 or plot a new direction. #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) June 25, 2020

BUSINESS CONTINUITY PLANNING!!! You can’t grow if you can not demonstrate how you will handle an unexpected event. Our own internal process here has become part of the narrative we share with clients! #tradeelite #globalbusiness #cdnbiz https://t.co/29BUsmirnz

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A4: Incorporation of #contingency plans, regardless of potential added costs. e.g. #supplychain #diversification, #economic security by widening reach of #customerbase. Long-term #growth plans and investments vs. short-term wins #TradeElite https://t.co/pURFXji7a8

— Amy Karam (@AmyKaram) June 25, 2020

Cultural awareness and sensitivity. At first I bought a N. American attitude to trade. and failed badly! Respecting culture is critical for growth planning. Because that builds trust and personal relationships! #tradeelite #globalbusiness #cdnbiz https://t.co/29BUsmirnz

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A4: How to ensure the safety of employees as they move forward. #TradeElite

— Craig Atkinson (@craigaatkinson) June 25, 2020

It is critical to team up with External Experts. We have some on this thread who can help you grow your global business! This can save you time and money. And help you really focus on your sweet spots! #tradeelite #globalbusiness #cdnbiz https://t.co/29BUsmirnz

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A4. Analyze what is happening in your sector, some sectors have been continuing to work as before and are struggling to procure supply. #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) June 25, 2020

A4: Remember when we all had disaster recovery plans? Wait, you’re not as old as me but either way, now it’s not even a #hashtag bring back #DisasterRecovery #TradeElite https://t.co/sSSlUDDmQX

— bernadette fernandes (@on_the_varanda) June 25, 2020

What advice do you have for global businesses looking at restarting their business development efforts?

1) Don’t be afraid to ask for help! We have failed and slipped up many times. Ask for help from @TCS_SDC and engage your team. Also get your news from sources outside of our home base. #tradeelite #globalbusiness #cdnbiz https://t.co/ZQQ3Og5k3t

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A5: start at the beginning, before you went global, because everything, even where you go & grow is different now. If you’re restarting you have a head start, & lots of tweaks; If you’re pivoting/starting fresh, then go back in your mental archives to how you started #TradeElite https://t.co/7RIiMcKLKv

— bernadette fernandes (@on_the_varanda) June 25, 2020

2) Be honest.. If you can’t hire someone who will be honest for you :-)… What are you really good at? What does firms actually need? Can you offer it at a good price and be profitable. U have to be brutal honest! #tradeelite #globalbusiness #cdnbiz https://t.co/ZQQ3Og5k3t

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

A5: Diversification is key for businesses that are already global and looking to restart their business development efforts. #TradeElite https://t.co/2FWOLRnijQ

— Craig Atkinson (@craigaatkinson) June 25, 2020

A5. Don’t stop! Reach out now. Look for alternate paths, channels, or contact information due to offices that may be closed. #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) June 25, 2020

What are some big lessons from this crisis that businesses can act on now to protect themselves in the future?

A6: my biggest lesson was to expect the unexpected, and by expect I mean prepare for the worst: build a business continuity plan for the worst crisis that you CAN’T even imagine; then put in mitigating measures with several checkpoints to ensure you’re still protected #TradeElite https://t.co/KZ3tPMUIcR

— bernadette fernandes (@on_the_varanda) June 25, 2020

A6: I’d say #digital is key. Administration can be simplified, but transferring and storing #data has consequences now. Be familiar with your market’s rules (e.g. #EU member countries). #TradeElite

— Craig Atkinson (@craigaatkinson) June 25, 2020

A6: Rethink your #strategy to be more long term focused and incorporate #geopolitical #risk considerations in your business plans. #TradeElite #globaltrade https://t.co/xjdgZZCcO1

— Amy Karam (@AmyKaram) June 25, 2020

A6. Look for avenues, how competitive are you to customers in countries seeking to diversify import dependence, Stabilize their supply chains, seeking substitutions for current supply.#TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) June 25, 2020

1) Business Continuity Planning is a MUST!
2) #DigitalTransformation must start NOW!!!!
3) Businesses must be able to deliver anytime/anyplace
4) Economic and Social Inequality is even a larger problem than many of us realized. #tradeelite #globalbusiness #cdnbiz #SDGs https://t.co/0J2fTjovvi

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

With #DigitalTransformation – you can turn Data into information!!! #Digital… #Digital.. #digital.. with respect for culture.. And Canada should absolutely kick you know what on this topic! #tradeelite #globalbusiness #cdnbiz https://t.co/0J2fTjovvi

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

Lastly, businesses need to re-evaluate every single vendor/partner. What are they doing to become more digital? Do they engage diverse voices in a global economy.. Or are they still operating as if nothing changed. #tradeelite #globalbusiness #cdnbiz https://t.co/0J2fTjovvi

— Rad Dockery ??? (@Rad_Dockery) June 25, 2020

Crystal ball time! Where do you see more growth opportunities in the near future?

A7: I think growth will occur in products and sectors that are “sustainable”. If anything, the pandemic and natural disasters have shown how fragile the whole system is. #TradeElite

— Craig Atkinson (@craigaatkinson) June 25, 2020

A7: One word; one continent… Africa! Personally, I see growth happening in markets that are unfortunately used to being resourceful, responding to crisis, before it happens. Africa gets growth; they’re ready for diversification; they’re ready for Trade & Investment #TradeElite https://t.co/k3bVi88R6w

— bernadette fernandes (@on_the_varanda) June 25, 2020

A7. Define the best approach, look at opportunities, adjust to adapt new practices, perhaps as part of your corporate social responsibility practice, pivot and optimize your efforts. #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) June 25, 2020

Read the rest of the chat and join future discussions by following the #TradeElite hashtag. And stay tuned for the next #TradeElite chat, coming up Thursday, July 23 at 2:00-3:00PM ET, and if you haven’t yet, join us on Twitter at @FITTNews.