Pecan farmers pushing for fewer trade barriers

From wymt.com.

WASHINGTON (Gray DC) — The pecan farming business is booming. The industry is rapidly adding jobs in Georgia and billions of dollars to the economy in the South, but now this sector faces a stumbling block.

Pecan farmers are looking to send more of their product overseas. The Indian market looks promising, but U.S. farmers face high export costs. Now a bipartisan group of lawmakers is fighting to lower those rates.

Georgia pecan farmer Jeb Barrow has seen the pecan farming business change. He’s been a grower since 1974, and just in the past several years, he’s seen it go from a domestic market to an international one.

Now about a third of U.S. crops are shipped to China.

“That’s kind of a good news-bad news situation,” said Barrow.

“Anybody that reads the paper or looks at the news understands that some geopolitical event could occur tomorrow that could have that effect, so that’s kind of a sword Damocles if you will hanging over the industry’s head,” explained Barrow.

Ultimately, Barrow says it wouldn’t be wise for farmers to just rely on Chinese buyers. So, their interest turns to India, which has an exploding population and a diet rich in nuts.

“We have high hopes that the Indian market can – if we can get the tariff issue addressed – the Indian market can be developed and in time others as well, so everybody’s optimistic,” said Barrow.

The sticking point? U.S. tree nut farmers sending pistachios or almonds face, on average, a 10 percent tariff to ship products to India. That tariff, essentially a tax, is 36 percent for pecans.

“I think this is a huge opportunity for Georgia and the southeast. A lot of people down there have committed to pecans as a product for the future, and I think they’re right,” said Sen. David Perdue (R-GA).

Georgia Senator David Perdue and eight of his colleagues recently signed a letter to the U.S. trade representative, urging officials to negotiate lower tariffs.

“We know to grow our economy, we need open and free markets around the world. That’s what this is all about,” said Perdue.

Trade expert and Georgetown Professor Michael Czinkota says talks with India could mean a little give and take, but ultimately, both countries would benefit from streamlining trade barriers.

“From an altruistic perspective, we want their own people to do well. Because if they do well, then they buy more of our products and our relationships are likely to be better, so this whole idea of reducing the tariff on nuts is a good thing,” said Czinkota.

There are 15 pecan-producing states in the U.S., so if officials can help farmers crack into the Indian market, the impact could be tremendous.

Troy Fuhriman and Jozsef Szamosfalvi at the First Year Seminar

This week, the students had the opportunity to hear the insights of two professionals specialized in international trading financing, Troy Fuhriman and Jozsef Szamosfalvi, who kindly accepted the invitation to be our guests yesterday, Nov.1st.

Mr. Fuhriman, Professor Czinkota and Mr. Szamosfalvi

Mr. Fuhriman, Professor Czinkota and Mr. Szamosfalvi

Troy Fuhriman (left) is the Senior Vice President and General Counsel of the Export-Import Bank of the United States (EXIM). He helped analyze the rationale, history, tradition and needs of EXIM Bank. He also discussed the controversy surrounding the existence of EXIM Bank and highlighted the existence of competitive organizations. 

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Mr. Fuhriman has been one of the very early Trump’s appointees at the official US Government export credit agency, where he has served since January 2017. He has also been an Associate Professor of Law at the Kyungpook National University, in South Korea, for seven years.

Mr. Fuhriman also co-founded and managed Goldfinch Limited and Stellar Photonics for 14 years.

Mr. Jozsef Szamosfalvi (right) is the Managing Director at ExWorks Capital, a senior secured debt fund focused on international trade financing. He shared his thoughts from the perspective of private sector, especially on trade finance. He is also the Managing Director at the financial advisory firm Interlink Capital Strategies, where he focuses on emerging markets, especially for projects related to infrastructure, financial and energy sectors.

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Mr. Szamosfalvi is also part of Georgetown University as an adjunct instructor for international trade and emerging market finance at the McDonough Business School.  He kindly invited our students to consider applying for work at his firm.

To know more about the First Year Seminar previous guests, please click here.

Yes, Cultural Awareness Matters in International Marketing

Pizza
Culture defines the behavioral patterns that are distinguishing characteristics of members of a society. It gives an individual an anchoring point, an identity and codes of conduct. Culture has 164 definitions in English alone but all of them accept that culture is learned, shared and transmitted across generations. Cultural awareness in business has been recognized over centuries. When the East India Company came and initiated the spice trade in India in the 17th century, its members embraced Indian cultural values in order to integrate with society and promote business. To be effective marketers across cultures and borders, companies must recognize that cultural differences exist and then adapt their approach to marketing accordingly.

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Georgetown First Year Seminar with Trade Experts

I am delighted to have key experts on trade coming to my seminar. Most recently we had

Mr. William Brock

Frm Senator and U.S. Trade Representative on key Washington trade insiders
 

WechatIMG95Mr. Zhenge Zhao

General Representative of China Council for the Promotion of International Trade, USA Representative Office

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Mr. Donald Manzullo

Frm chairman, House committee on Small Business
Currently President and Chief Executive Officer of the Korea Economic Institute of America
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Mr. Francisco Sandoval

Economic Advisor to the Ministry of the Economy’s Trade and NAFTA Office at the Embassy of Mexico in Washington, DC 
Professor Michael Czinkota (czinkotm@georgetown.edu) teaches international marketing at Georgetown University’s McDonough School of Business in Washington D.C. and the University of Kent at Canterbury, U.K. His key book (with Ilkka Ronkainen) is International Marketing, 10th ed., CENGAGE

Good Corporate Citizenry, No Longer a Choice But a Necessity

By Victoria Galeano & Jerry Haar

When queried at a 1909 business meeting about the choice of colors available for his automobiles, Henry Ford replied that customers could have any color they wanted as long as it is black. Fast forward to the late 20th and early 21st centuries and consumers today are now in the driver’s seat (no pun intended). Publications such as Consumer Reports, CNET, and a myriad of other independent professional and consumer reviews of goods and services empower buyers, dictating to producers the style, features, and price ranges that consumers seek.

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