Embed Size (px)
DESCRIPTION
SunTrust Bank - Global Trade Solutions. DID YOU KNOW ? …INTERESTING FACTS AND TRENDS IN THE WORLD OF GLOBAL TRADE. South Carolina International Trade Conference Charleston May 27, 2008. Agenda. SCITC. Did you know? – Interesting Facts about Global Trade International Products & Service. - PowerPoint PPT Presentation
Citation preview
© Copyright 2005 SunTrust Banks, Inc.
SunTrust Bank - Global Trade Solutions
DID YOU KNOW ?
…INTERESTING FACTS AND TRENDS IN THE WORLD OF GLOBAL TRADE
South Carolina International Trade ConferenceCharleston
May 27, 2008
2
Agenda
Did you know? – Interesting Facts about Global Trade
International Products & Service
SCITC
3
US Trade Defecit
-80
-75
-70
-65
-60
-55
-504/
30/2
006
6/30
/200
6
8/31
/200
6
10/3
1/20
06
12/3
1/20
06
2/28
/200
7
4/30
/200
7
6/30
/200
7
8/31
/200
7
10/3
1/20
07
12/3
1/20
07
2/29
/200
8
($ B
illi
on
s)
US Trade Balance
US Dollar Index
60
65
70
75
80
85
90
95
100
6/30
/200
3
9/30
/200
3
12/3
1/200
3
3/31
/200
4
6/30
/200
4
9/30
/200
4
12/3
1/200
4
3/31
/200
5
6/30
/200
5
9/30
/200
5
12/3
0/200
5
3/31
/200
6
6/30
/200
6
9/29
/200
6
12/2
9/200
6
3/30
/200
7
6/29
/200
7
9/28
/200
7
12/3
1/200
7
3/31
/200
8
USD Index
Market Factors Driving Export Demand
Dollar Declines / Exports Rise
With the dollar declining by 21% since the beginning of 2006 and 14% since the beginning of 2007, exports are increasing at a faster rate than imports.
95% of the world’s consumers live outside the U.S.
International trade represented 40% of U.S. GDP growth in 2007
21% Dollar Decline since the beginning of 2006
Marginal decrease in the trade deficit has coincided with the USD decline.
SCITC
4
A World of Change: Trends in Export Growth(in billions of dollars)
0
20
40
60
80
100
120
140
160
180
200
'02 '03 '04 '05 '06 '07
0
200
400
600
800
1000
1200
'02 '03 '04 '05 '06 '07
U.S. Exports Exports – SunTrust Footprint (Southeast and Mid-Atlantic)
Export Trends
TradeStats Express™
5
Trade’s Impact on Small/Medium U.S. Companies
More than 700,000 U.S. jobs are supported by the $117 billion in manufactured exports
70% or more of the businesses involved in global trade are small or medium size.
95% of the world’s consumers live outside the U.S.
Jobs related to exports pay 13-18% higher than non-exporting
International trade gives the average U.S. household $9,000 more in spending power
97% of U.S. exports are from small to medium sized businesses
More than two-thirds of U.S. exporters have fewer than 20 employees
One in three acres of U.S. agricultural production is exported
The importance of exports to the U.S. economy
6
China: Challenge or Opportunity?
“Over the past 15 years, bilateral trade in goods and services between the U.S. and China has
increased by some 1200 percent. Over the past six alone, bilateral goods trade has nearly tripled and services trade has more than doubled.” (USTR)
“China’s economy has grown by nearly ten percent a year for the past 20 years…US exports of manufactured goods, agricultural products, and services have grown an average of 23 percent a year since 2001.”(USTR)
U.S. factories account for more than 20 percent of the world’s added manufacturing value. By comparison, Chinese plants account for about 8 percent. (Cato Institute)
“China is today our fourth largest export market, and the fastest growing export market for the U.S in the world” (USTR)
In 2006, the United States exported $55 billion in goods to China. Exports to China grew by 32% from 2005 to 2006, making it the fastest growing major market for U.S. products. (U.S. Chamber)
China's tariffs on goods of most interest to U.S. exporters have dropped from 25 percent in 1997 to 7 percent, thanks to its entry into the World Trade Organization. As a result, China has become a major market for American-made semiconductors, aircraft, chemicals, plastic materials, and other manufactured goods along with soybeans and cotton. Surging demand in China and other emerging markets is a main reason why American farmers and manufacturers are enjoying record output, sales, and profits.
7
Did You Know ?
U.S. exports to China could soon boom even more:
China will spend billions in months to come Remake hospitals Communication and power networks Roads and infrastructure Dams and water-treatment facilities Factories, schools and houses
Many of the goods and services needed are not produced in China.
China is our 3rd largest export market behind Canada and Mexico.
406 out of 435 Congressional Districts in the U.S. have seen triple-digit export growth to China from 2000 – 2007.
U.S. exports to China are growing 5X faster than any other export market.
This is less a function of the falling dollar and more of rising Chinese demand for U.S. products
Our mission is to
help people and
institutions prosper.
SCITC
8
Did You Know ?
China
They need what we make…
Chemicals
Turbines and Telecommunications
Drugs and Medical Devices
Sewage and Sanitation Equipment
If a product requires modern technology and precise engineering, chances are, China needs it
China’s large currency reserves and strong demand allowed it to weather the Southeast Asia currency crisis in the 1990s.
More than a decade later, China has even more savings.
Which means…
China will keep buying more from the U.S.
China’s Yuan
China couldn’t ask for a better time to buy American…
The falling U.S. dollar
The appreciation of the Chinese Yuan
Our vision is to be the
bank of choice for
businesses.
SCITC
9
Did You Know ?
And, it’s not just China…
The world’s tallest building is in Taipei, and soon to be Dubai.
The largest publicly traded company is in Beijing.
The biggest refinery is being constructed in India.
The largest passenger airplane is built in Europe.
The largest investment fund on the planet is in Abu Dhabi.
The biggest movie industry in Bollywood, not Hollywood.
The largest ferris wheel is in Singapore.
The largest casino is in Macau, which overtook Las Vegas in gambling revenues.
The Mall of America, once the largest in the world, today doesn’t crack the top ten.
The facts reflect a seismic shift in power and attitudes
The opportunities are boundless for U.S. exporters to provide the products and services to meet this demand.
Our strategy is to
deliver big bank
capabilities with
local delivery and
response.
SCITC
10
Did You Know ?
In 2006 and 2007, 124 countries grew their economies at over 4 percent a year
…That includes more than 30 countries in Africa
In a list of growing global companies, four companies EACH are from Brazil, Chile, Malaysia and South Africa.
At the military and political level, the U.S. is the world leader…
But…on the industrial, financial, social and cultural level…
the level of U.S. power is being challenged.
It is the rise of the rest of the world…
…that can lead to opportunity for the U.S.
SunTrust backs its
relationships with
nearly two centuries
of commitment,
leadership and trust.
We know what it
takes to grow a
business.
SCITC
© Copyright 2005 SunTrust Banks, Inc.
International Products and Services
- Risk Mitigation- Trade Finance
12
Products and Services
Understanding our clients needs allows us to recommend the appropriate solution
International Payments and Other Services
International Wires in USD and Foreign Currency
International Drafts in USD and Foreign Currency
Foreign Check Processing • Foreign Banknotes & Travelers Checks
Documentary Services Letters of Credit • Import • Export • Standby • Transferable
Documentary Collections • Import • Export • Direct
Training on Products and Systems for clients using documentary services
Export Financing Programs
Short-term Export Financing for U.S. Exporters
Medium-term Buyer Financing for Foreign Buyers of U.S. Products
Banker’s Acceptance Financing and Forfaiting (note purchase facilities)
Trade Finance Consulting Services • Referrals to Export Credit Insurance Providers •
Interface with Ex-Im Bank and insurance providers to facilitate transactions
Currency Risk
ManagementSpot Contracts • Forward Contracts • Options • Multi-Currency Accounts • Multi-Currency
Investments • Multi-Currency Loans • Cross Currency Swaps • Canadian Lockbox Facility
Online Systems Internet based systems for Letter of Credit processing • Foreign Currency Trading •
International Wire initiation in USD and Foreign Currency • International Draft issuance
Global Trade Solutions
13
Working Capital Finance Cycle US exports are excess of $1 trillion; 7% of those are on LC; 81% are on open account;
18% of U.S. exports are credit insured
DSO for exports: 68 days/DSO for domestic: 40 days – depicting additional WC demands to support export activity
Exporting often = working capital needs
Pre-shipment finance
Post-shipment finance
Receivables finance
Liquidity Management
Order Make Ship Invoice Receivable Collect
Global Trade Solutions
Global Trade Solutions
14
Global Trade Solutions: A full suite of international trade capabilities
• Import Financing• Trade Letters of Credit• Standby Letters of Credit•Documentary Collections
• Export Credit Insurance• Letters of Credit• Substituting SunTrust risk for
foreign bank risk under letters of credit• Issuance of standby letters of
credit to support bid/performance bonds
• International Receivable financing• Export Working Capital Financing• Foreign Buyer Financing• Small Business Financing
• Over 1500 international correspondent banks world wide•Referrals for in-country foreign banking relationships
Trade ServicesSolutions
Risk Mitigation
Trade Finance Solutions
Advisory Services
Treasury &Payment
Solutions
Inbound Foreign
Investment
Foreign
Exchange Global
Solutions for
your business
• Foreign Market intelligence • Export Marketing strategies• Import strategies•Referrals to other trade advisors• Trade Seminars
•Currency Risk Management•Non-USD Interest Rate Management• Spot, Forward, NDF & Swap Contracts•Options (vanilla and structured) •Online FX• Foreign Currency Transaction Accounts*• Foreign Currency Investments•Canadian Lockbox
• Assistance to subsidiaries of foreign corporations expanding into U.S• Banking services to expatriates working for
foreign owned subsidiaries
• International wires•Online Information and
Control Services• International Cash Position Management•Card Programs•Merchant Services
Our broad capabilities serve your business through every phase of its international trade growth.
InternationalCorrespondent
Banking
* Deposit products are offered through SunTrust Bank, Member FDIC
15
SunTrust Global Trade Solutions Team
To truly understand your business and what drives it, we believe in the value of a dedicated relationship manager along with a team of
product and industry specialists with local decision-making power.
Susanne Keough Managing Director, Global Trade Solutions
Division Manager
404-813-1030, [email protected]
Ron Reighter Vice President, GTS Sales Officer - Carolinas
704-362-4062
Michael Filchock Director, GTS Sales Team Leader
404-588-7507
