News and Commentary by John Curran

Opportunities…

Students always ask me “what product should I import or the best country to import from”.

This monthly column will try to answer this question with what CAI sees to be the best opportunities available to the importer/buyer. CAI instructors are taught to teach the class about “importing opportunities”. And this month’s article and future articles will help the importer to access opportunities in the world market place so our students can be one step ahead of the competition. Remember importing is all about “opportunities”, and this is what we strive to provide other students/entrepreneurs.

The year 2006 has seen some of the most significant changes in years that will benefit the importing community. For instance those of you interested in importing textiles have seen the elimination of quota on textile products. I can't stress enough the significance of this opportunity.

Except for China or Vietnam, (limited restrictions) all quotas on textiles have been lifted hence the tremendous increase in textile imports/exports globally. Textile imports alone from China have increased nearly 40% with Vietnam a close second. So when students/entrepreneurs ask me what or from where I should import look to where the players are sourcing from.

Please note: Even thought quotas have been lifted on textile goods you still have to pay duties. Don’t worry about duties because my philosophy is when it comes to duties all importers are on equal footing. That’s the beauty of importing: WAL MART and other large importers don’t get any special consideration over small entrepreneurs.

Another significant trade event for '06 was the “Central American Free Trade Agreement” (CAFTA) between the United States and six Central American/Caribbean Countries i.e. Guatemala, El Salvador, Dominican Republic, Honduras,Costa Rica and Nicaragua.

This new trade agreement will open up new opportunities for both importers and exporters alike. All of the countries except for Costa Rica have approved the trade agreement. So watch for the complete implementation of this trade agreement soon and start to take advantage of buying/selling to this region.

This trade agreement is modeled after the North American Free Trade Agreement (NAFTA) between the U.S., Canada and Mexico. These agreements help to expand and promote free trade amongst member countries, lift trade barriers and eliminate product/customs duties.

So the next time a student/entrepreneur asks about the hottest market or product to import from. I try to explain to them, yes China is where the smart money is but we do have plenty of opportunities waiting for you out there in so many new and exciting markets to source from.

Good Luck…
John Curran
President/CAI

P.S.
In the coming months I will be focusing on the so called global “HOT MARKETS” of Vietnam and India.

Please email me with your feedback or questions.