Saturday, March 7, 2015

eBay, TPP and Small Business International Trade

For forty years I have been practicing small business international trade, the last thirty self-employed.  Never have I seen such nonsense:
Currently, a very small proportion of traditional U.S. businesses export to foreign countries. Those that do export are usually bigger businesses, and even then they may only export to a handful of countries.  According to a study from eBay, over 90 percent of U.S. businesses using eBay marketplaces – including ours – are trading across borders, and on average these businesses sell to 30 countries. Comparatively, less than five percent of traditional businesses trade with customers outside the U.S., and on average they sell to fewer than three countries. These findings underscore the dire need to update our nation’s trade policies, making it easier for small Internet businesses to engage in the global economy. In a trading system that was created to cater to large companies, we face hurdles to make global trade accessible to small businesses – and that is what we need to improve.
This is entitled:


US trade policies fail to account for small businesses


Let's break it down:

First the title... US trade policy is "Get big or get out."  It very much accounts for small business, it is specifically hostile to small business.
Currently, a very small proportion of traditional U.S. businesses export to foreign countries. 
Why would they?  Small business necdessarily means you hae not penetrated the USA market yet.  Why sell to Kota Kinabalu when you have not sold to New York yet?  
Those that do export are usually bigger businesses, and even then they may only export to a handful of countries.  
No, the vast majority of exporters are small businesses, in spite of the hostility in policy and actions of the government.  
According to a study from eBay, over 90 percent of U.S. businesses using eBay marketplaces – including ours – are trading across borders, and on average these businesses sell to 30 countries. 
So where is the problem? Imagine that, eBay, a huge company, commissioned a study that tells us they need rules written to help them.  And the found in all of USA four small businesses who agree.   
Comparatively, less than five percent of traditional businesses trade with customers outside the U.S., and on average they sell to fewer than three countries. 
You mean people who are intensely interested in exporting have maxed out at three customers overseas, on average?  Might it be for the reason that beyond the three they found diminishing returns?
These findings underscore the dire need to update our nation’s trade policies, making it easier for small Internet businesses to engage in the global economy. 
No, it underscores nothing, since you are operating at the level of gossip.  But while you are chattering, what policy?  TPP?  Demonstrate how this will help.
In a trading system that was created to cater to large companies, we face hurdles to make global trade accessible to small businesses – and that is what we need to improve.
Name the hurdles.  I have been in this 40 years and I do not see anything billionaire-backed TPP will improve, quite the contrary.

Questions:

Why would faster communication make for faster logisitics?

Why would faster communication lessen the demand for control what crosses broders?

We already have in essence free trade on less than $400 sales, the green form customs declaration.

Less than $2500 is already informal entry almost worldwide.

China has opened FTZ with no labeling, ingredients, taxes... required, how about USA do the same?

The billionaires at eBay and the gang behind this is trying to get TPP which is just another get big or get out, pro-facism gambit.  Oppose it.

Feel free to forward this by email to three of your friends.


1 comments:

Anonymous said...

I think in the U.S., big corp. interest controls U.S. foreign and economic policy. So, of course, any government programs will favor big corporations, instead of smaller businesses.