Direct access to market potentials
The Consul General of the United States of America in Frankfurt am Main Kevin C. Milas is an experienced diplomat. Since 1981 he was assigned to numerous locations on five continents. He assumed charge of the U.S. Consulate General Frankfurt on July 9, 2012. We asked Mr. Milas to give us a brief information on how the Consulate is supporting the business community.
GSC: What does the Consulate undertake to strengthen the trade relationships between Germany and USA?
Mr. Milas: The Consulate is constantly trying to strengthen the economic relationship between the U.S. and Germany. A concrete example to reach out to German companies is the initiative by Ambassador Murphy to visit the top 50 German companies who invest in the United States. In the last two months I have personally visited about 15 companies in our Consular district encompassing Hessen, Baden-Württemberg, Rheinland-Pfalz and the Saarland. We want to hear from the companies why they invest in the United States and what their experiences are, good ones as well as challenges they face and how we might assist them.
We also meet and lead discussions with numerous small and medium size business owners, visit business headquarters and tour manufacturing plants. On the political level, I meet with Finance and Economic leaders to talk about transatlantic trade relations. In April, for example, I talked with Baden-Württemberg's Minister of Finance and Economics, Nils Schmid about the successful Baden-Württemberg – U.S. trade relations.
During his recent visit to Stuttgart Ambassador Murphy met with business men and women to discuss the value of the German-American trade relationship. We talk a great deal about how our two nations can work together to improve both of our economies, Germany is America's 6th largest trading partner (2012) and we would like to see those number continue to grow.
Through the Commercial Service, which has a large presence in Frankfurt, the Consulate supports numerous trade shows and hundreds of U.S. exhibitors on an annual basis. The Commercial Service spends a good deal of time finding German partners for U.S. exporters, as well, and facilitates business for U.S. companies on the ground in Germany.
GSC: What are the responsibilities of the Commercial service?
Mr. Milas: The U.S. Commercial Service is the trade promotion arm of the U.S. Department of Commerce's International Trade Administration. Commercial Service is composed of trade professionals who help U.S. companies get started in exporting or increase sales to new global markets.
Commercial Service offers trade counseling, business matchmaking, assistance with commercial diplomacy and holds trade promotional programs. Especially for our global partners, Commercial Service offers assistance finding U.S. business partners and invites global companies to participate in trade shows that feature thousands of U.S. companies. With offices in nearly 80 nations, including Germany, Commercial Services is committed to making an economic partnership easier for both companies at home and abroad. It also promotes the U.S. as a tourist destination.
GSC: Why is the USA a good place to invest for foreign companies?
Mr. Milas: The U.S. is a great place for foreign companies to invest first of all because it is the world's largest and most diversified economy. The GDP in 2011 was 14.99 trillion USD, and that was during the recession. The economy is growing stronger every day, and that is leading to a stronger consumer market and the need for new business.
Additionally, the U.S. has a strong legal tradition of protecting and supporting new business ventures, especially when it comes to intellectual property rights. Finally I think it is always important to remember that America is a very large country, blessed with a wealth of natural resources and also human resources. We have a skilled and educated workforce ready for the challenges of an ever changing market and enthusiastic about building international partnerships.
Investors find a positive business and regulatory environment and an innovative business culture. In addition, low energy costs compared to Europe make the market especially attractive to energy intensive manufacturing and industry.
GSC: Which industries are particularly attractive in the USA from your point of view? And for what reasons?
Mr. Milas: Technologies and information services- the U.S. is a country of innovators, which makes the U.S. often on the cutting edge of technology. Interesting industries are especially Autos/auto parts; aerospace; medical equipment and pharmaceuticals; energy and environment; computers, software, services; electronics; finance. These match up well with German industry needs. The U.S. and Germany both compete globally in these sectors, and have strong corporate bonds, which bodes well for the post T-TIP future.
The U.S. also has the education infrastructure to support these industries. Every spring thousands of young people graduate from Universities and prepare to enter the work force. These industries are attractive to them, and I think that they are attractive to skilled professionals in other nations as well. They are sectors of the economy which can benefit everyone and therefore they are appeal to a wide audience as well.
GSC: There are lots of special incentives to attract Foreign Direct Investments (FDI). Could you point out the major ones?
Mr. Milas: Absolutely, Foreign Direct Investments are a very important part of the American economy, not only because they help to support American business, but also because they have a positive effect on the ability of companies to build a global network and make international partners. The U.S. government offers numerous incentives to encourage FDI, and many focus on the industries I have mentioned before, like technology. Most incentives are delivered at the state and local level and include a wide variety of forms of business assistance, including tax breaks. Regions, states, cities, and economic development organizations compete with each other for global investment. That in itself is an important incentive. Competition creates good business.
One very positive incentive offered by the Department of Energy is the Clean Energy Loan Guarantee Program to support clean energy projects. Another great program is International Science and Education Competitive Grants Program (ISE). The ISE program provides grants supporting research, extension, and teaching activities that will enhance the capabilities of American colleges and universities to conduct international collaborative research, extension and teaching. Programs like this keep the U.S. competitive and help create viable products which the world can benefit from.
GSC: Mr. Milas, you are an experienced international diplomat. Since 1981 you are in the diplomatic office and got to know diverse people and cultures from nine countries on five continents. You speak five languages (English as your mothertongue, Russian, Potuguese, Spanish and German).
Which suggestions do you have as an US-American to business people from different countries, who want to invest in the U.S. concerning intercultural competencies? What should our members (from Germany, Turkey, Brazil, Russia, China and India) consider?
Mr. Milas: First of all, it is important to realize that the United States is a large and diverse country. Therefore one should never assume that things are the same wherever they go in the United States. How things are done in New York is not necessarily the same as elsewhere in the country.
Second, remember that Americans in general are much less formal than one finds elsewhere in the world. Americans also tend to get down to business quickly. The informality in combination with quickly getting to business should not be interpreted as rudeness, rather Americans want to be friendly but at the same time getting the business done.
And finally, potential investors should take advantage of the support the U.S. government and German agencies in Germany (BDI, DIHK, GTAI), and in the U.S. (RGIT) offers to German investors. For general information, investors can contact the Consulate/Commercial Service locally, for direct assistance Select USA (SelectUSA.commerce.gov), and they can attend the Select USA Investment Summit (Oct 31-Nov 1 in Washington D.C.)
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