ISSUE 03, VOL. 01
September 2013

Dear Colleagues:
Hard to believe that Labor Day has come and gone already. This summer, TAG closed the books on our 17th year in business. We want to sincerely thank all of our clients, partners, and friends for many years of interesting deals and rewarding relationships. We look forward to continuing our work with you!

Would your claim be paid?

TAG has published a series of targeted messages intended to help our clients actively engage with their export credit insurance policies and avoid any potential issues (such as CLAIM DENIAL!) stemming from non-compliance with Ex-Im Bank guidelines.

Want to get in on the fun? Test Your Knowledge with our quiz - "Would this shipment be covered?"

Then, check out past issues in our Policy Compliance Series for more information! Keep an eye out for the final installment later this month on "Past Dues, Claim Filing, and Documentation!"

Export Manufacturers' Finance Roundtables

TAG is pleased to have co-developed and be speaking at this special seminar series co-hosted by the International Trade Association of Greater Chicago and MB Financial Bank. This five-part seminar series will be held bi-weekly from September through November in Oak Brook, Illinois, and will cover essential topics in export finance. Our own Ursula Wegrzynowicz will share her knowledge of credit insurance and working capital finance. The Roundtables are intended for C-Level Executives of Manufacturing / Export firms. Topics and dates are listed below - Click here for more information and registration. We hope to see you there!

Export Financing: The Basics of L/Cs & Collections
September 17, 2013

Shipping Documents
October 1, 2013

Credit Insurance / Shipping on Open Account
October 15, 2013

Working Capital Finance
October 29, 2013

Exploring Global Markets
November 12, 2013

Opening Markets for U.S. Exports

With an eye on future sales growth, U.S. exporters should be tracking progress on two free trade agreements (FTA's) that the Obama Administration is currently pursuing with foreign trading partners in Europe and the Pacific region - the Trans-Pacific Partnership (TPP) and the E.U.-U.S. Transatlantic Trade and Investment Partnership (TTIP).

The Trans-Pacific Partnership (TPP) is a proposed regional free trade agreement which the U.S. has been negotiating with countries including Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Just recently, Japan announced that it would join these talks. The purpose of the agreement would be to eliminate tariff and non-tariff barriers to trade and investment, including agriculture, goods, and services. It is intended to build upon existing FTA's that the U.S. has with some of these nations and to lower barriers to trade further. The TPP countries collectively represent the largest U.S. trading partner, accounting for 40% of total U.S. goods trade, and the agreement will expand U.S. exports in an economically important region.

On a slower pace, since it is much newer, is the E.U.-U.S. Transatlantic Trade and Investment Partnership (TTIP). In an initial week-long negotiating round in mid-July, the U.S. and European negotiators laid out 20 areas to cover, including market access for agricultural and industrial goods, small- and medium-sized enterprises (SMEs), customs/trade facilitation, and regulatory issues generally. The aim is to eliminate many remaining barriers to open trade with the E.U. Since tariffs are already pretty low (averaging 4%), the key is to remove regulations, non-tariff barriers, and red tape. Some estimates suggest that $300 billion a year in increased U.S. exports could result from this agreement, if finalized.

The U.S. Trade Representative, Michael Froman, is actively engaged on both fronts, and the Administration is conducting parallel negotiations in the hopes of finalizing the Trans-Pacific agreement later this year and a U.S.-E.U. agreement after that. After the negotiations on TPP and TTIP conclude, the President will still need to obtain ratification from the U.S. Congress before the agreements become law.

With thanks and due credit to Dan Renberg for contributing this article.
Dan Renberg, Partner, Arent Fox, LLP
Member, Board of Directors, U.S.
Export-Import Bank
1999-2003, dan.renberg@arentfox.com

With New Opportunities, Come New Risks (and Credit Insurance)!

"Generally demand for export credit seems to be closely related with market liquidity, tenor and the size of projects... Due to the credit crunch of Europe and large demand for infrastructure financing in Asia, there is expected to be continued demand for export credit and investment insurance."
~Cecile L.H.F. Gregory, Head, Office of Co-financing Operations, Asian Development Bank (ADB)

"The role played by trade and insurance credit agencies is very important to help mitigate the risk of doing business in such a period of deleveraging and heightened perception of risk."
~Marc Auboin, Counsellor, Trade and Finance, World Trade Organization (WTO)

According to the Berne Union, a membership organization comprised of both private insurers and publicly-backed export associations, $1.538 trillion (USD) in new short-term credit insurance was underwritten in 2012 (up from $1.495 trillion in 2011 and $1.257 trillion in 2010). The highest short-term exposure levels were in the U.S., Germany, the U.K., Italy and France. Approximately $1.827 billion was paid out in claims under short-term insurance policies in 2012 and $340 million was recovered. The countries with the highest level of claims paid in 2012 were Italy, the U.S., Iran, the U.K. and Spain.

To read more, see the Berne Union's 2013 Yearbook and the updated statistics here.

~Cecile L. H. F. Gregory, Head, Office of Co-financing Operations, Asian Development Bank (ADB)

As always, we value our relationship with you. If we can be of assistance in any way, please let us know.

Kind Regards,

The TAG Team

Curt, Leslie, Ursula, Jackie and Sara

We appreciate your feedback! Please let us know what you think. If you have ideas for content you'd like to see in future issues, do let us know. Remember, "We Work for You!"