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Market Development Cooperator Program

Market Development Cooperator Program. MDCP first authorized in 1988, funded in 1993. Enabling legislation : Omnibus Trade and Competitiveness Act of 1988 :

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Market Development Cooperator Program

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  1. Market Development Cooperator Program

  2. MDCP first authorized in 1988, funded in 1993 Enabling legislation: Omnibus Trade and Competitiveness Act of 1988: MDCP is to be a unique way to "develop, maintain and expand foreign markets for nonagricultural U.S. goods and services." 15 U.S.C. Sec. 4723 Funding: Jobs Through Exports Act of 1992and Freedom Support Act of 1992: First MDCP awards, totaling over $2 million, were made in fiscal 1993

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

  4. MDCPPublic-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

  5. Market Development Cooperator Program (MDCP) 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 20%Creativity & institutional capacity 20%Budget, match, sustainability “Cooperators” commit to:  Projects to engage small . firms in exporting  Term: 3years  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: Februaryen Report export results Project-generated exports per $1 of MDCP award $1 $327 Other federal agencies Cooperator Report export results GM Global Markets I&A Industry & Analysis 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

  6. 2014 ITA Priorities 1. Create or sustain U.S. jobs by increasing or maintaining exports Other priorities, 7-10, none of which is required: 2. Major emerging markets with rapid growth and new customers such as: (see map) 3. Increase exports by any of the following U.S. industries: Aerospace Transportation equipment Health/medical products/services Chemicals Processed foods Education Design/construction products/services Energy/environmental products/services Information/communications technology Media/entertainment Machinery/equipment Professional services Travel/tourism Logistics/distribution services 4. Help U.S. businesses to secure export financing 5. Engage more U.S. firms in major international trade shows and other significant foreign outreach activities 6. Help current exporters to expand to more markets 7. Address non-tariff barriers to U.S. exports such as discriminatory regulations, local content requirements, and technical requirements 8. Secure strong intellectual property rights protection and combat counterfeiting and piracy 9. Counter discriminatory trade policies such as "indigenous innovation" 10. Shape and encourage the adoption of standards outside the United States that are industry-developed, market-driven, science-based, and internationally recognized. Required priorities: 1+ Any 2 of 2-6

  7. MDCP evaluation and debriefing Due: mid-February September October project start 20% Potential to enhance competitiveness 20%Performance measurement 20% ITA partnership & priorities 20%Creativity & institutional capacity 20%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

  8. Total project funding 1993-2013

  9. Markets targeted by cooperators 1993-2011 • Over the years cooperators have targeted 70 different markets • (only the top 40 appear in the tag cloud above) • China has overtaken Mexico as the market most often targeted by cooperators • Other markets recently popular: Brazil, UAE, Indonesia

  10. MDCP examples of projects 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

  11. MDCPRVs in China, Japan, Korea 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. To date the project has generated $7 million in 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.

  12. MDCP specialty auto equipment to Gulf States & China 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.

  13. Commitment and sustainability At 67% of project cost, MDCP’s cost share requires commitment A cooperator must commit to provide at least two thirds of the resources required to undertake the project _______________________________________________ • Sustainability is evident in the foreign presence (foothold) that we have helpedindustry groups to establish abroad

  14. Market Development Cooperator Program (MDCP) Brad Hess Director, Market Development Cooperator Program Industry & Analysis 1401 Constitution Ave., NW, rm 4320 Washington, DC  20230 T  202-482-2969 M  202-384-0491

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