Upload
leslie-butler
View
219
Download
4
Tags:
Embed Size (px)
Citation preview
Market Development Cooperator Program
MDCP first authorized in 1988, funded in 1993
Enabling legislation:Omnibus Trade and Competitiveness Act of 1988:MDCP is to be a unique way to "develop, maintain and expand foreign markets for nonagricultural U.S. goods and services." 15 U.S.C. Sec. 4723
Funding: Jobs Through Exports Act of 1992 andFreedom Support Act of 1992:First MDCP awards, totaling over $2 million, were made in fiscal 1993
2
Market Development Cooperator Program (MDCP)
Cooperator
Targeted foreignmarkets
$300,000 Trade associations
Each year the International Trade Administration (ITA) selects 7-9 trade associations and other non-profits industry groups for awards of up to $300,000 each.
MDCP award recipients, “cooperators”, design projects to help small firms (SMEs) to export to targeted foreign markets.
Project activities vary depending on the industry a cooperator is helping and the markets targeted. Examples include:
- Participating in foreign trade shows- Opening a product demo center- Coordinating industry standards
SMEs
SMEs export
Cooperator
3
Cooperator
MDCP Public-private partnership
ITA .
Trade associations Chambers of commerce State trade departments Other non-profits
MDCP encourages industry groups to partner with ITA
Targeted foreignmarkets
Export multipliers: industry groups that do not export, but whose companies or business constituents do export
Cooperator projects strengthen the global competitiveness of a U.S. industry, not just a particular company
Each MDCP project team includes ITA and other federal specialists who work shoulder-to-shoulder with a cooperator
SMEs export
4
Market Development Cooperator Program (MDCP)
CooperatorOther federal
agencies
I&AIndustry & Analysis
GMGlobal Markets
Project activities helpsmall U.S. firms export
Targeted foreignmarkets
Non-profit industry groups compete for MDCP awards from ITA:
Up to $300,000
Partner w/federal agenciesen
Applications due: Februaryen
“Cooperators” commit to:
Projects to engage small
. firms in exporting
Term: 3 years
Two-thirds of total cost
Joint team coordination
$1
ITA .
Trade associations Chambers of commerce State trade departments. Other non-profits
Report export results
Project-generated exports per $1 of MDCP award
Product demo centerTrade mission Technical seminar
Foreign trade showIndustry standardsForeign rep office
$327Report export results
Evaluation Criteria
20% Potential to generate exports that . . . . . create or sustain U.S. jobs
20% Export performance measurement
20% ITA partnership & priorities
20% Creativity & institutional capacity
20% Budget, match, sustainability
5
2014 ITA Priorities
1. Create or sustain U.S. jobs by increasing or maintaining exports
3. Increase exports by any of the following U.S. industries:
Aerospace Transportation equipment Health/medical products/services Chemicals Processed foods Education Design/construction products/services Energy/environmental products/services Information/communications technology Media/entertainment Machinery/equipment Professional services Travel/tourism Logistics/distribution services
4. Help U.S. businesses to secure export financing
5. Engage more U.S. firms in major international trade shows and other significant foreign outreach activities
6. Help current exporters to expand to more markets
2. Major emerging markets with rapid growth and new customers such as: (see map)
Required priorities:1+
Any 2 of 2-6
7. Address non-tariff barriers to U.S. exports such as discriminatory regulations, local content requirements, and technical requirements
8. Secure strong intellectual property rights protection and combat counterfeiting and piracy
9. Counter discriminatory trade policies such as "indigenous innovation"
10. Shape and encourage the adoption of standards outside the United States that are industry-developed, market-driven, science-based, and internationally recognized.
Other priorities, 7-10, none of which is
required:
6
7
MDCP evaluation and debriefing
GMGlobal Markets
I&AIndustry & Analysis
-Foreign posts-U.S. Export Assistance Ctrs-Country desks-Advocacy Ctr
-Industry specialists-OPCM/MDCP-Intellectual property-Standards-Industry Advisory Committees
MDCP Merit
Review Panel I&A
Assistant Secretary
Top ranked
Unsuccessful applicants
Award announcement: -Members of Congress-DOC press release-Industry events
GMGlobal Markets
I&AIndustry & Analysis
-Foreign posts-U.S. Export Assistance Ctrs
-Industry specialists-OPCM/MDCP
Comments
Debriefing
20% Potential to enhance competitiveness
20% Performance measurement
20% ITA partnership & priorities
20% Creativity & institutional capacity
20% Budget, match, sustainability
Due: mid-February September October project start
8
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
MDCP awards funded
MDCP awards funded
Total project funding 1993-2013
Over the years cooperators have targeted 70 different markets (only the top 40 appear in the tag cloud above)
China has overtaken Mexico as the market most often targeted by cooperatorsOther markets recently popular: Brazil, UAE, Indonesia
Markets targeted by cooperators 1993-2011
9
MDCP examples of projects
10
SFSA’s MDCP project activity in the International Organization for Standardization (ISO) helped U.S. makers of various steel products increase exports by $129 m.
AEM leveraged an MDCP award to open a Beijing office from which its staff reviews trade journals for construction bid opportunities in China and makes them available to AEM members via its website
Steel products to Europe
Construction equipment to China
MDCP RVs in China, Japan, Korea
Temp Solution for PermsThe Recreation Vehicle Industry Association (RVIA) received $300,000 in MDCP. One year into the project, RVIA has now hired a full-time representative who lives and works in East Asia. To date the project has generated $7 million in exports. Sales measured in hundreds of millions of dollars per year are on the horizon, especially in China, but not until China addresses standards and regulatory issues. Through the MDCP project, ITA is helping RVIA remove barriers.
RVIA helped a member company sell this temporary beauty shop that replaces one destroyed in the recent tsunami.
11
MDCP specialty auto equipment to Gulf States & China
Measuring session & trade showsITA is helping the Specialty Equipment Market Association (SEMA) boost export to the Gulf States and to China. Rules on what is “street-legal” and who is authorized to customize a vehicle, e.g. vehicle manufacturer or local auto shop, are issues SEMA is addressing with ITA’s help.
U.S. specialty auto equipment makers measure a Toyota Hi-Lux 4x4 truck. ITA helped SEMA get special permission to import the truck temporarily in the United States. The vehicle is not authorized for U.S. sale but is the highest selling vehicle worldwide that is likely to be customized.
12
13
Commitment and sustainability
A cooperator must commit to provide at least two thirds of the resources required to undertake the project
At 67% of project cost, MDCP’s cost share requires commitment
Minimum requirement
Actual
0% 20%
40%
60%
80%
100%
67%
73%
33%
27%
CooperatorITA
Still operating today
Continued after MDCP
project
Footholds undertaken
0 2 4 6 8 10 12 14 16 18 20
14
16
18Sustainability is evident in the foreign presence (foothold) that we have helped industry groups to establish abroad
_______________________________________________
Brad HessDirector, Market Development Cooperator ProgramIndustry & Analysis1401 Constitution Ave., NW, rm 4320Washington, DC 20230T 202-482-2969M 202-384-0491
Market Development Cooperator Program (MDCP)