Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, December 15, 1994 TAG: 9412150030
SECTION: BUSINESS PAGE: B-10 EDITION: METRO
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE: LENGTH: Medium
If you are trying to do business in Mexico and have a disagreement with your trading partner there, try to settle it without a lawyer, advised a Virginia trade expert.
"Mexicans don't like to use lawyers the same way we do," said Charles Jumet, North American Free Trade Agreement director for the Virginia Department of Economic Development.
Jumet conducted a seminar on the basics of NAFTA Wednesday morning at Virginia Western Community College in Roanoke. The seminar was sponsored by the college and the A.L. Philpott Manufacturing Center in Martinsville.
Jumet was president of a Richmond bank and was a mergers and acquisitions consultant for Ernst and Young before joining state government.
Virginia business operators often fail to take advantage of export opportunities because of fear of the unknown, Jumet agreed. "How do I take the first step?" is their foremost question, he said.
But it's not that hard, and the state and federal governments can help, he said. Jumet said his one-man office can put Virginia companies in contact with businesses in Mexico and Canada and save them a lot of time in the process.
A state or federal endorsement of a business' export plans can make a big difference in results, Jumet said. Government assistance can mean faster contact with the right people in the foreign market, he said.
One valuable service is the Gold Key Foreign Commercial Service offered through U.S. embassies and consulates, Jumet said. Operated by the U.S. commercial consulate, the service arranges a day or two of appointments with several foreign business people who may be interested in the Virginia company's products. The fee for the service is modest, but it's important to make arrangements for the visits several weeks in advance, he said.
Attendance by 15 people at the Roanoke seminar was indicative of the strong interest among Virginia companies in exporting to Canada and Mexico, Jumet said.
While some jobs will be lost to foreign competition because of NAFTA, overall the free-trade treaty will be positive for Virginia, Jumet asserted.
"Southwest Virginia and the Roanoke Valley will feel the positive effects of NAFTA," he said.
Some of the businesses that will benefit by the opening of the Mexican market, he said, include building technology, environmental controls, and agricultural-based businesses.
One NAFTA-related success is Sentinel Systems in Hampton, which concluded a $25.5 million contract to sell its home security equipment in Mexico over five years. Representatives of the company accompanied Gov. George Allen on his trade mission to Mexico and Canada in July.
Since NAFTA took effect Jan. 1, U.S. exports within North America have grown by 14 percent, twice the rate of trade to the rest of the world, according to the U.S. Department of Commerce.
U.S. exports to Mexico have been averaging $1 billion a week and were up 21.7 percent for the nine months. Imports from Mexico totaled nearly that much and were up 22.8 percent over the period. Exports to Canada, the nation's largest trading partner, were up 11.3 percent from January through September, to over $83 billion.
Virginia ships $180 million worth of goods annually to Mexico and $1 billion worth to Canada, Jumet said.
One of the best ways to break into the export market is to develop strategic alliances with foreign businesses, Jumet said. Such arrangements are more important in Mexico than in Canada because Mexicans have a more personal style of doing business, while Canadians operate more like U.S. business people.
While a Virginia business can ship its products by truck or rail to the export markets, it also has the option of using ships out of Hampton Roads when moving goods to Mexico and that can sometimes prove cheaper, Jumet said.
by CNB