201504 CM April

INTERNATIONAL TRADE
ASEAN TO AEC
NEWS IN BRIEF
SOUTH East Asian countries are working
towards open trade – a single market
across the region by the end of 2015. The
ASEAN Economic Community (AEC) could
transform prospects: expected growth of
five percent across the region this year
could be dramatically increased as tariff
barriers disappear.
Don't hold your breath though. It's
not at all clear whether all the constituent
countries are ready for the change; some
protectionist opposition has emerged, and
there are rumours that implementation
could be delayed.
However, the long-term plan is still for
closer economic union – which means if
you're trading in any of the constituent
countries, you need to think about what
it will mean for you. There will be some
threats – but equally, there could be the
opportunity to become a major regional
export player.
GREXIT AVERTED?
NEGOTIATIONS between the new Greek
government and its Eurozone peers have
ended not in a standoff, not in a real deal,
but in a four-month extension of provisional
arrangements.
Things were getting pressing: first of
all because the Greek government has
no liquidity left. The tax take has shrunk –
many Greeks are simply not paying their
taxes, and the economic situation means
there’s not much income or profit to tax
– and the Government may not be able
A recent US court case saw American
candy giant Hershey's block the import of
UK made confectionery – on trademark
grounds.
Hershey's said the confectionery,
particularly its packaging, was too close to
the candy that Hershey’s makes in the US
under licence from Cadbury’s. (More cynical
observers note that ‘chocolate’ in the US
only needs 10 percent cocoa content,
whereas UK ‘chocolate’ has to be at least
NO SWEET DREAMS
to continue paying pensions or wages.
after Secondly, because Putin is sticking
his finger in by offering his own deal, and
making a purely Eurozone affair into a
major international ignition point.
Predictions of a Grexit were wide of
the mark. But the country only has four
months and it’s back to the negotiating
table. If you’re exporting to Greece,
you need to be very careful about what
currency you get paid in, and when exactly
you get paid.
20 percent.)
That is a warning to exporters – do
your research properly; even if you’re
exporting goods with valid trademarks in
the UK, there could be a clash with local
businesses.
(And for the record, there is only one
US confectionery product that is really
worth seeking out: Reese’s Peanut Butter
Cups. Which as it turns out are made... by
Hershey’s).
FOREIGN EXCHANGE SPECIALISTS
CURRENCY EXCHANGE RATES FOR PREVIOUS MONTH:
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SOCIAL MEDIA
AN interesting snippet in the trade
press was the decision by Tunbridge
Wells county court to allow a trustee in
bankruptcy to notify the bankrupt of an
order made against him by posting it on
the bankrupt's Facebook page.
That leads me to wonder whether
we're all making the best use of social
media. Have you looked up your
trade customers' Facebook pages?
Do you follow them on Twitter? Does
the CEO have an interesting life over
at LinkedIn? Sometimes, that gives
you a different perspective from the
annual report or the financial press.
Sometimes, of course, it won't be
useful at all. But it might be worth
taking a look.
Whether using a customer's
Facebook page to request an overdue
payment is a good idea remains to be
seen.
NEW FAD DIETS?
THE world is changing its diet, and that’s
creating interesting opportunities for UK
food exporters.
For instance, India – a country full
of vegetarians – is now eating more
and more meat. And the Chinese,
whose traditional diet contains no dairy
products at all, are drinking more and
more milk.
But Elmgrove Foods (the Food and
Drink Federation's exporter of the year
in 2013) has made its business out
of supplying more traditional tastes –
‘selling the unsellable,’ exporting all
kinds of offal that we don’t eat and other
people will. It started off supplying beef
and lamb to Vietnam – and now exports
to 80 different countries. Smart chaps!
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