E-commerce and advances in logistics have put more U.S. companies than ever before in touch with global markets – and millions of potential new customers. If your business has not launched an international strategy, 2019 is a good time to get started. Or, if you’re already trading beyond our borders, there’s no time like the present to consider new markets for expansion.
To help get you started, we’ve compiled a list of key markets to consider for 2019:
U.S. Exports to Vietnam have increased by 330 percent over the last ten years, making it one of the top performing markets for U.S. companies, according to the International Trade Administration (ITA) and Export.gov. With trade tensions between China and the U.S. still high, and some costly tariffs in place, many companies are looking to Vietnam as a key part of their growth strategy in the Asia-Pacific region.
Another reason to consider Vietnam? The country is part of trade deal called the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) with ten other countries, including Canada, Australia, Japan and Mexico. While the U.S. is not part of the deal after dropping out of the initial TPP, the agreement does promise several important things for Vietnam’s economy and regulatory environment that are of benefit for U.S. businesses. First, the CPTPP is predicted to push Vietnam’s GDP higher by as much as 1.3 percent. Second, the agreement includes provisions that strengthen intellectual property rights and anti-counterfeit measures, which means greater protections for all exporters to Vietnam.
With a population of 93 million people, half of whom are under age 35, Vietnam has a dynamic commercial environment that may be right for your business. To learn more, visit the ITA’s Country Commercial Guide.
The 15th largest economy in the world, Mexico represents a large and diverse market. The country has a deep trade relationship with the U.S., close proximity, and important cultural synergies. A renegotiated NAFTA trade agreement, called the United States-Mexico-Canada Agreement (USMCA), will provide important benefits to U.S. exporters and importers upon its final ratification, especially for companies in the energy, technology and pharmaceutical industries. The agreement contains stronger protection for intellectual property rights, and will continue to keep the barriers to trade between the U.S. and Mexico low. Mexico is also an important market for U.S. consumer goods, especially in the area of beauty and cosmetic products. To learn more, visit here.
Trade between the U.S. and India expanded to 126.2 billion dollars in goods and services in 2017, with the U.S. standing as India’s largest trading partner. India was the 15th biggest export market for U.S. products in 2017, and the most recent DHL Global Trade Barometer predicts a continued acceleration in trade with country. Consider that 65% of India’s population was born after 1980, and that as of 2016, there were 440 million millennials and 390 million Gen Z teens and children. It’s the sheer size of India’s youth that will make India one of the world’s most compelling consumer stories in the next 20 years.
Top U.S. exports to India include precious metals and stones, machinery, aerospace, optical and medical instruments, and mineral fuels. In 2017, the country’s economy continued to perform well, with GDP growing at more than 7 percent. To learn more, visit here.
With the largest population in Africa and the 7th highest rate of internet use in the world, Nigeria is extremely attractive for e-commerce businesses. The country is gradually becoming a cashless society, and it also has one of the youngest populations, with a majority of the youth having access to cell phones and m-commerce.
While oil and gas imports, along with infrastructure and energy-related products, have historically been key in U.S.-Nigeria trade, the country’s growing middle class is now estimated to be about 50 million, which means that consumer products are growing in importance. There are a range of U.S. consumer goods in the Nigerian market now from both large and small companies, and several U.S. businesses have opened manufacturing facilities in the country.
In Southeast Asia, Indonesia has the largest population and a growing middle class. It is also currently experiencing economic growth at 6 percent. The Indonesian government has issued a number of policy measures that would reduce trade barriers, meaning that the country has one of the more favorable trading environments in the region at this time.
Today, Indonesia’s aviation market is growing at 20 percent and favors U.S. products, according to the International Trade Administration. Telecommunications products and parts, as well as infrastructure-related goods, are also important. Like Nigeria, Indonesia is seeing growing opportunities in consumer products; the Indonesia consumer is ranked as one of the most confident in the world and 50 percent of the country’s population is under the age of 30.
Where is your business trading in 2019? Let us know on Twitter @DHLUS.