Exporters, Look South!Northern Arizona companies looking to build overseas sales are wise to start by looking south to the United States’ eleven Free Trade Agreement (FTA) partners in Latin America.
These 11 economies – Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, and Peru – all have a rapidly growing base of middle-class consumers and diversifying industries. Tariffs are low or nonexistent, which can mean a lower cost of doing business and lower barriers to entry in these markets.
A record number of American businesses are reaching international customers, but exporting companies are only taking advantage of one market. Expanding to additional export markets improves a business’ bottom line. Companies exporting to one market average roughly $375,000 in export sales. For a company exporting to two-to-four export markets, that average nearly triples to $1 million in sales.
Thanks to its network of offices in the Latin American FTA markets, the U.S. Commercial Service (CS) is well-placed to help Arizona exporters evaluate and prioritize market potential and implement a business development strategy for the region. CS services include
- Identifying potential partners and clients;
- Sharing insights into legal and cultural environments;
- Arranging business-to-business meetings; and,
- Advocating for U.S. companies bidding on FTA partner government procurement contracts.
To learn more about how the Commercial Service can help, Northern Arizona companies are encouraged to contact Greater Flagstaff Chamber of Commerce CEO Julie Pastrick. Julie can put you in direct contact with U.S. Commercial Service resources in Arizona.