Talking Trade

In the latest episode of “Talking Trade,” Trade Acceptance Group Principal Bruce Glaub outlines the benefits of export credit insurance. 

If an exporter isn’t paid by a client, the insurer will pay out a percentage of that unpaid amount, Glaub explained. That’s useful at the international level because exporters have fewer options for recouping their losses from outside the country, he said. 

“Rather than what you do in the U.S., using the law maybe as your heavy hand, internationally, it’s great to use trade credit insurance,” he said. “That gives you the ‘stick,’ per say, if you need to collect from someone.” 

Glaub also noted this type of policy can help exporters offer longer payment terms to their customers amid the ongoing supply chain delays. He said that’s helpful for customers, as they’re more likely to have received the shipment by the time the payment is due. 

“The way it helps you, is you now have a longer term but it’s a protected term,” he said. “You have that guaranteed payment. So you know that, ‘Okay, I’m not going to get paid in 30 days but I’m definitely going to get paid in 90. And if I don’t, I have this insurance policy that’s going to pay me if something catastrophic happens.” 

He added those longer terms will likely be shortened in time as supply chains continue to untangle. 

In the latest episode of “Talking Trade,” Mark Rhoda-Reis of DATCP discusses another potentially record-setting year for Wisconsin ag exports. 

Rhoda-Reis, the director of the agency’s International Agribusiness Center, said the state set a new record with $3.94 billion in ag exports in 2021, marking an 18 percent increase over the prior year. 

“And we’d had some challenging years, so that was good news to see,” he said. “And then year-to-date June, so our second quarter, we are already up 10 percent over that record amount. So it’s shaping up to be a strong year.” 

He gives an overview on the latest figures for Wisconsin dairy, crop and meat exports, all of which are on the rise. 

And he shares his thoughts on how the state has been faring amid all the challenges of the past several years, pointing to supply chain disruptions, shipping container shortages, higher shipping costs and COVID-19 disruption of export markets. 

“There’s a long list of things that we’re looking at, you would think that we would be down at this point,” he said. “But I think post-COVID demand has been so strong — and this is what the companies that we work with are telling us — that it’s actually been driving a lot of that need.”

In the latest episode of “Talking Trade,” Cohen Group Associate Vice President Damian Felton explains the implications of the Uyghur Forced Labor Prevention Act on international commerce. 

The act aims to bolster U.S. prohibitions on importation of goods from the Xinjiang region of China, according to co-host Sandi Siegel of M.E. Dey & Co. Felton explains the law prohibits imports of any products coming from the region or any organization included on a UFLPA list of associated entities. 

“This really stems from the social programs that China is targeting Uyghurs and other ethnic minorities in the Xinjiang autonomous region that give rise to forced labor … items originating wholely or in part from Xinjiang will be denied entry unless there’s clear and convincing evidence that they were not made with forced labor,” he said. 

He noted information on which projects being stopped isn’t made public, aside from some anecdotal reports of solar panels, men’s apparel and shirts being detained. 

“I think the impacts of UFLPA will increase over time,” Felton said.

In the latest episode of "Talking Trade," Briggs & Stratton legal executive Jennifer Jin discusses the impact of trade sanctions on manufacturing supply chains.

Jin holds the position of senior counsel, global compliance, contract and litigation for the Wauwatosa-based manufacturer. She shares her perspective with hosts M. E. Dey & Co. President Sandi Siegel and Katie Henry, executive director of the Metropolitan Milwaukee Association of Commerce's World Trade Association.

She explains the importance of geopolitical changes related to the conflict between Ukraine and Russia.

"It's vital that companies, especially global companies, are able to respond and understand their responsibilities as it relates to some of those changing laws, not just here in the United States but all across the world," she said.

Jin says Briggs & Stratton created a rapid response team to grapple with the complexities of export control changes resulting from the conflict, including members of sales, finance, logistics and legal divisions.

"Making sure that you understand not only where your products are coming from directly, but where your products are coming from along the chain," she said. "So where are the materials coming from, are the materials going to be sourced from places, or people or entities that are sanctioned?"

In the latest episode of “Talking Trade,” attorney lawyer Ngosong Fonkem discusses the “seismic trade shift” in global supply chains caused by sanctions on Russia. 

Fonkem, a trade compliance specialist with Chicago law firm Page Fura, notes “this is the first time since the end of the Cold War that sanctions of this magnitude” have been levied on a major global economy. Many nations including the United States have enacted sanctions on Russia following its invasion of Ukraine in February. 

“Russia essentially has become the most sanctioned country in the world, essentially bypassing Iran,” he said. “Bear in mind the country is the 11th largest economy in the world in GDP terms … and you pick any commodity out there, Russia is among the top three exporter of that commodity.” 

He provides an overview on various types of sanctions against businesses, individuals and specific sectors including finance, energy and others.

In the latest episode of “Talking Trade,” energy specialist Emily Pickrell highlights industries and companies likely to benefit from the federal Inflation Reduction Act. 

Pickrell is a journalist and global energy scholar at the University of Houston and currently writes about energy, politics and technology for Forbes. She says the wide-ranging legislation will benefit suppliers of electricity needed for electric vehicles, among others. 

“That’s solar and wind and battery production,” she said. “That’s where a large portion of the benefits are going.” 

She notes the legislation contains about $80 billion for certain EVs, with caveats aimed at steering future electric vehicle production away from China and other countries “perceived as unfriendly” to the United States. 

“Tesla is an obvious, huge beneficiary of this,” she said. “They have a vertical supply chain, they’ve already thought about these issues in advance.” 

She predicts a push toward development of related supply chains in response to the legislation, along with a “broad re-think” in the industry around long-distance supply chains. 

In the latest episode of “Talking Trade,” E.M. Wasylik Associates Managing Director Ken Wasylik discusses his approach for reaching new international markets. 

He highlights how the COVID-19 pandemic has impacted those efforts, such as meeting and forming connections with clients. 

“Whether it’s a trade mission, trade venture — basically sending some sales person to that particular market, and that’s how you built it pre-pandemic,” he said. “During the pandemic, that whole travel, that section stopped. You just couldn’t do it.” 

Whether it’s developed through meeting in person or over video call, he emphasizes that “trust is the number one element” for any business relationship. 

Wasylik touches on trends in North American supply chains, how companies are addressing ongoing challenges in this arena and how alternative suppliers are helping address those issues. And he discusses the outlook for inflation and rising interest rates. 

“Everybody’s trying to manage those particular challenges,” he said. “What we’re seeing is that inflation is a universal global issue. Every market around the world is experiencing inflation, whether it’s in fuel prices, food prices, manufacturing goods, transportation.” 

In the latest episode of “Talking Trade,” Bank of America executive Drew Slocum discusses how his team helps companies navigate the intricacies of international trade. 

“The last 18 months, what we’ve seen companies work through has been unique, different and challenges that most of our companies have never faced all at one time,” said Slocum, senior vice president and marketing manager for the company. 

The show touches on rising inflation and interest rates as well as supply chain and labor issues, along with how financial institutions and their corporate clients are grappling with these trends. 

“We’ve seen borrowing ramp up quite a bit really across the board, as companies are faced with higher costs, but also as they think about trying to get ahead of inventory issues,” he said. “More advanced purchasing on inventory … trying to make sure they have the components on hand so they can meet the demand that they’re seeing.”

In the latest episode of “Talking Trade,” U.S. Department of Commerce Deputy Undersecretary for International Trade Diane Farrell discusses the administration’s pandemic recovery efforts. 

“For those of us in the international sphere, it’s not just about building back better in the United States,” she said. “It’s about how do we strategize our economic recovery, how do we take advantage of opportunities overseas, and how are we also helping our foreign partners to recover from the global impacts of COVID.” 

Farrell also highlights agency efforts to ensure trade agreements establish a “level playing field” for U.S. companies. 

“We know that when the level playing field exists, our companies are extremely successful,” she said. 

She also said she’s “thrilled over the moon” about the Indo-Pacific Economic Framework for Prosperity recently announced by President Biden. She points to the “diverse markets” included in the framework such as Singapore, Japan, Australia, India, Malaysia and others. 

“Importantly, this is also an effort to start to truly address in a material way the impacts of climate change,” she said. “Another, of course, extremely important Biden-Harris administration priority, but one that folks in that region particularly have been impacted by.”

The latest episode of “Talking Trade” features a conversation with David Usher, acting consul general for Canada’s Chicago Consulate. 

He talks about the consulate’s role in promoting cross-border trade and economic development in Canada as well as Wisconsin, Illinois and Missouri, pointing to the “very important and robust” trade connection between Canada and Wisconsin. 

He explains Wisconsin exports about $7.5 billion in goods to Canada each year, while it imports about $5.5 billion annually. And he highlights the 189 Canadian-owned businesses in the state that employ over 22,000 Wisconsin workers. 

The discussion ranges from opportunities for Wisconsin startups in Canada and the growing role of Toronto as a “tech hub” to supply chain issues and collaborations in water technology. 

Usher touts the role of the water sector in Milwaukee, touching on the connection between the consulate and the Water Council’s Brew 2.0 incubator program. Three Canadian companies have been chosen to join the program’s latest cohort, he said. 

“This is another area where Canada and Wisconsin have shared skills, shared interests, and the cooperation is great, and we’re trying to make it even stronger,” he said.