Dear Subscriber

 

Welcome to the Wade Trade News import-export bulletin for May 2009. Try not to be too pessimistic in these times of global recession. Although they’re a little harder to find there are still lucrative opportunities out there. And we’ll bring you a free tailor-made selection of the latest leads every month. This issue we’ll bring you news of opportunities in China, Kazakhstan, Peru and Angola .... and how to get started importing or exporting a product that always has potential - toys!

Luxury Goods Market Still Growing In China
While the developed world is cutting back on unnecessary spending, the big manufacturers of luxury goods are looking to China to sell their upmarket jewellery, fashions, luggage and household goods. The luxury goods market has seen weakening sales growth or even declines in the traditional markets of the USA, Europe and Japan. However, experts say the Chinese luxury goods market remains healthy.

Guo Zuli, Director of the World Luxury Research Center, which operates Chinese luxury goods website www.luxee.com, says: "There is no doubt that luxury brands will come to China and grab a piece of the huge potential market. The Chinese market shows remarkable resilience in the financial crisis because it has an increasing number of people able and willing to buy luxury goods. Unlike the mature traditional markets, demand in China is far from saturated either materially or psychologically." China’s impressive economic growth and rising number of new rich have attracted many luxury companies says Huang Siwei, Director of the www.neeu.com website, a Beijing-based luxury and lifestyle portal.

US Economy Showing Early Signs Of Recovery?
The depressed financial and retail sectors in the USA seem to be show some sign of recovering, which may indicate the recession there is bottoming out leading to new trade opportunities. A recent poll conducted by the New York Times (www.nytimes.com) and CBS News (www.cbsnews.com) found that 39% of respondents thought the country was heading in the right direction, up from 15% in mid January, just before President Barack Obama took office. Meanwhile, the number of those who said it was heading in the wrong direction dropped to 53% from 79%, according to the survey.

Many analysts agree that, while still a long way from recovery, the recession in the USA may be bottoming out. "I think we can say we’ve gone through the most terrible part of the recession" said Brian Bethune, economist at IHS Global Insight. However, many experts predict US unemployment could still rise before it starts to level out.

Prospects For Kazakhstan Economy Good
Shigeo Katsu, Vice President of the World Bank for European and Central Asian Issues (www.worldbank.org), has said that Kazakhstan should be able to survive the worst effects of the global financial crisis. Although the country’s industrial production has kept rising since 2000 it is heavily dependant on volatile oil and gas prices. So the Government has introduced a series of measures to support other industries and balance the economy. In particular the food processing, computer software and printing industries have seen rapid growth.

Kazakhstan’s trade volume was US$109.1 billion in 2008, a 35.5% growth year on year, and the sixth consecutive year of growth - much of it from oil and gas. However, huge potential is said to exist for the development of other industries. Many major companies, motor manufacturers in particular, are promoting an optimistic view of the Kazakhstan market. They believe it will grow quickly once the financial crisis eases.

The official Government website, with useful information and links, is at en.government.kz

USA-Peru Trade Promotion Agreement Launched
Despite many countries considering trade protectionism in the current economic climate the United States-Peru Trade Promotion Agreement (Tratado de Libre Comercio Perú-Estados Unidos) came into force last month. The agreement is a bilateral free trade agreement whose objectives are eliminating obstacles to trade, consolidating access to goods and services, and fostering private investment in Peru. Apart from commercial issues, it incorporates economic, institutional, intellectual property, labour and environmental policies.

Here’s a good site if you are interested in trading with Peru: Livinginperu.com is Peru’s official news portal and directory for foreigners living in Peru, business travellers and local individuals.  Living in Peru offers useful information, tips and local news about Lima and other Peruvian locations - all in English.

Toys .... A Product To Survive The Recession With
Toys tend to be a product that does well in a recession, as people cut back spending on themselves but are more reluctant to cut spending on their children. If you’d like to get started import-exporting toys then the US-based Toy Industry Association (TIA) website has useful information on toys, what toys are ‘in’ at the moment, details of worldwide trade fairs and exhibitions and a useful member directory. You can visit it at www.toy-tia.org. The site is an excellent site to visit if you want to export toys to the USA. As you might expect China is now the world’s largest toy manufacturing nation. The China Toy Association has a site at www.toys-yourlinktochina.org, with lots of information and supplier contacts.

Angola Opening Up For Trade
The Angolan Government has recently confirmed a programme to promote economic reconstruction  and improve trading links with the rest of the world - Angola’s official news agency ANGOP reported recently. Aguinaldo Jaime, co-ordinator of the Restructuring Commission of the National Agency of Private Investment (ANIP), says that foreign investors are now welcome to launch projects in the country -especially in sectors such as industry, public works and tourism. He said: “Angola’s political and macroeconomic situation is now stabile, two essential factors attracting foreign investment.” He added that the Angolan government has in recent years approved and adopted a number of laws and regulations on private investment complemented by reciprocal protection accords and so now offers good prospects for foreign investors and traders. Steps are also being taken to reduce poverty and improve living standards, which should increase demand for imported goods.

ANIP has a useful website - English version at investinangola.com/engdefault.asp -to tell you more about the opportunities here.

More Useful Links
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Until next time,

 

Mark Hempshell
Editor

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