Market Development Cooperator Program: Selection Process

1. Market Development Cooperator Program: Selection Process Brad Hess Office of Planning, Coordination and Management (OPCM)/MDCP Brad.Hess@trade.gov 202-482-2969 Trade.gov/mdcp

2. Market Development Cooperator Program (MDCP) Trade associations $300,000 SMEs Cooperator SMEs export Targeted foreign markets Cooperator

3. MDCP: Public-private partnership Trade associations Chambers of commerce State trade departments Other non-profits ITA . MDCP encourages industry groups to partner with ITA Cooperator projects strengthen the global competitiveness of a U.S. industry, not just a particular company Each MDCP project team includes ITA and other federal specialists who work shoulder-to-shoulder with a cooperator SMEs export Export multipliers: industry groups that do not export, but whose companies or business constituents do export Targeted foreign markets Cooperator

4. MDCP: Public-private partnership Trade associations Chambers of commerce State trade departments. Other non-profits ITA . Evaluation Criteria 20% Potential to generate exports that . .. . . create or sustain U.S. jobs 20%Export performance measurement 20% ITA partnership & priorities 24%Creativity & institutional capacity 16%Budget, match, sustainability “Cooperators” commit to:  Projects to engage small . firms in exporting  Term: 3-5 years  Two-thirds of total cost Non-profit industry groups compete for MDCP awards from ITA:  Up to $300,000  Partner w/federal agenciesen  Applications due: en Report export results Project-generated exports per $1 of MDCP award $1 $339 Other federal agencies Cooperator Report export results I&A Industry & Analysis GM Global Markets Office of Planning, Coordination & Management (OPCM) Joint team coordination Targeted foreign markets Project activities help small U.S. firms export Foreign trade show Industry standards Foreign rep office Product demo center Trade mission Technical seminar

5. ITA priorities 1. Create or sustain U.S. jobs by increasing or maintaining exports Other priorities, 7-11, none of which is required: 2. Increase exports by any of the following U.S. industries: Agricultural equipment Aircarft & aerospace Alcoholic beverages, Architectural services, Automotive parts Building products and sustainable construction Civil nuclear power Cloud computing Cold supply chain Construction equipment Defense products Education Environmental technologies Financial technologies Franchising Health information technology Health services Industrial automation Insurance Media and entertainment Machinery technologies Medical devices Oil and gas Pharmaceuticals Recreational transportation Renewable energy Renewable fuels Smart grid technology Semiconductors and related equipment Travel and tourism Textiles and apparel 3. Help U.S. businesses to secure export financing 7. Address non-tariff barriers to U.S. exports such as discriminatory regulations, local content requirements, onerous standards or conformity assessment procedures, and other measures that may b unreasonably trade restrictive 8. Secure strong intellectual property rights protection and combat counterfeiting and piracy 9. Counter discriminatory trade policies such as "indigenous innovation“ or “localization” 10. Participate in the formulation and encourage the adoption of standards that are industry-developed, market-driven, science-based, and internationally recognized. 11. When appropriate, encourage the development of aligned regulatory requirements that avoid unnecessary costs on businesses Required priorities: 1+ Any 2 of 2-6 4. Engage more U.S. firms in major international trade shows and other significant foreign outreach activities 5. Help U.S. businesses to succeed in the digital economy. 6. Help current exporters to expand to more markets

6. MDCP selection process Due: early-March September October project start Read complete selection process description on pages 20-26 of federal funding opportunity notice 20% Potential to generate job-creating exports 20%Export performance measurement 20% ITA partnership & priorities 24%Creativity & institutional capacity 16%Budget, match, sustainability Award announcement: -Members of Congress -DOC press release -Industry events GM Global Markets GM Global Markets -Foreign posts -U.S. Export Assistance Ctrs -Country desks -Advocacy Ctr -Foreign posts -U.S. Export Assistance Ctrs MDCP Merit Review Panel Comments Top ranked I&A Assistant Secretary* I&A Industry & Analysis I&A Industry & Analysis Debriefing -Industry specialists -OPCM/MDCP -Intellectual property -Standards -Industry Advisory Committees -Industry specialists -OPCM/MDCP Unsuccessful applicants *See slide 7 for detail about Assistant Secretary selection criteria.

7. Assistant Secretary selection criteria detail Evaluation Criteria 20% Potential to generate exports that . .. . . create or sustain U.S. jobs 20% Export performance measurement 20% ITA partnership & priorities 24% Creativity & institutional capacity 16%Budget, match, sustainability (Link to complete text) Read complete selection process description on pages 20-26 of federal funding opportunity notice • Additional selection factors that AS/I&A may consider: • Merit review panel's written assessments • Degree to which applications satisfy ITA priorities • Geographic distribution of proposed awards • Diversity of industry sectors and overseas markets • Diversity of project activities • Avoidance of redundancy with the initiatives of other federal agencies • Availability of funds • Past performance MDCP Merit Review Panel I&A Assistant Secretary Top 10 I&A Assistant Secretary

8. MDCP project example: auto equipment to Gulf States & China Review more project highlights on trade.gov/mdcp Measuring session & trade showsITA is helping the Specialty Equipment Market Association (SEMA) boost export to the Gulf States and to China. Rules on what is “street-legal” and who is authorized to customize a vehicle, e.g. vehicle manufacturer or local auto shop, are issues SEMA is addressing with ITA’s help. U.S. specialty auto equipment makers measure a Toyota Hi-Lux 4x4 truck. ITA helped SEMA get special permission to import the truck temporarily in the United States. The vehicle is not authorized for U.S. sale but is the highest selling vehicle worldwide that is likely to be customized.

9. MDCP project examples: steel standards & construction equipment See list of all MDCP projects on trade.gov/mdcp Steel products to Europe Construction equipment to China SFSA’s MDCP project activity in the International Organization for Standardization (ISO) helped U.S. makers of various steel products increase exports by $129 m. AEM leveraged an MDCP award to open a Beijing office from which its staff reviews trade journals for construction bid opportunities in China and makes them available to AEM members via its website

10. MDCP project example: RVs in China, Japan, Korea Review more project highlights on trade.gov/mdcp Temp Solution for PermsThe Recreation Vehicle Industry Association (RVIA) received $300,000 in MDCP. One year into the project, RVIA has now hired a full-time representative who lives and works in East Asia. The project has generated several million dollars of exports. Sales measured in hundreds of millions of dollars per year are on the horizon, especially in China, but not until China addresses standards and regulatory issues. Through the MDCP project, ITA is helping RVIA remove barriers. RVIA helped a member company sell this temporary beauty shop that replaces one destroyed in the recent tsunami.