US export and franchise strategies
Naaman Tayyar, head of the commercial section, US Commercial Service of the US Embassy, Beirut, sheds light on how to grow your business locally and remain competitive
What is the role of the US Commercial Service in the Lebanese-us relationship?
The US Commercial Service in Lebanon serves as a one-stop shop through which Lebanese investors and buyers may be introduced to potential US partners. It is part of a network of over 1,400 trade professionals in over 100 cities and in more than 75 countries dedicated to helping US companies identify international partners around the world.
What services does the US Commercial Service offer its clients?
The US Commercial Service is the trade promotion arm of the US Department of Commerce. It offers a wide range of services, including the following: • Counsels US companies on market opportunities, regulations and ways of doing business in Lebanon. • Assists Lebanese companies in identifying US suppliers of products and services. • Assists US companies in identifying Lebanese agents and representatives for their products and services. • Recruits Lebanese delegations to attend trade shows in the US •Organizes trade fair sand seminars in Lebanon to promote US products and services. • Conducts market research for US companies. • Identifies major projects and offers advocacy support to US companies bidding for these projects. • Negotiates with the Lebanese government market access issues and barriers to trade and investment. •Mediates and resolves commercial disputes between US and Lebanese companies.
What opportunities are available for Lebanese investors in the US market? Are there any shows or events that they can participate in?
The US is the world’s most attractive consumer market, offering unmatched investment opportunities and a thriving culture of innovation. Companies of all sizes can find opportunities, resources and markets in the US to succeed and grow. For Lebanese companies that are interested in representing US products and services, CS Beirut annually promotes a series of major trade shows in the US and encourages Lebanese companies to attend those events. In the hospitality industry, we recruited business delegations to attend the National Restaurant Association Show, from May 19 to 22 in Chicago and the International Franchise Expo from June 1 to 3 in New York. These forums introduce Lebanese investors to the latest US technology in the hospitality industry and to US franchises that have potential to expand in Lebanon. For Lebanese companies that are interested in investing in the US, we encourage them to attend the ‘Selectusa Investment Summit’ from June 22 to 24 in Washington DC.
How prominent is the US presence in Lebanon in terms of F&B products and franchises?
Franchising is among the fastestgrowing business sectors in Lebanon. The US presence in franchising and F&B sectors is large and still has room to grow. Everywhere you travel in Lebanon, you see American franchises. Major franchises present are Baskin-robbins, Burger King, Chili’s, Cluckster’s, Domino’s Pizza, Dunkin’ Donuts, Häagen-dazs, Hardee’s, Kentucky Fried Chicken (KFC), Mcdonald's, P.F. Chang’s, Pinkberry, Pizza Hut, Starbucks, Subway and T.G.I. Friday’s. American franchises are still expanding in Lebanon. A good example would be Burger King’s inauguration of its 26th outlet earlier this year. Franchising opportunities are also available in the hotel industry. Several internationally recognized US hotel groups, including Hilton, Four Points (Sheraton) and Grand Hills (Starwood Hotels) already operate in Lebanon. In April 2008, we recruited a delegation from the Lebanese Franchise Association (LFA) to the International Franchise Expo and signed a memorandum of understanding with the International Franchise Association to foster international training and sharing of information.
What are the laws and regulations involved in exporting Lebanese goods to the US?
US Customs regulations are clear, and shipping goods across the border can be relatively straightforward if exporters are well prepared for it. Some extra time spent on paperwork will contribute a great deal to efficient customs clearance. Inaccurate or incomplete documentation is the most common reason for US authorities to delay shipments. Lebanese exports may have to abide by regulations established by other US agencies, such as the US Food and Drug Administration (FDA). For instance, FDA maintains guidelines for the labeling of food and beverage products. If your product falls into these categories, you may need additional documentation, such as a Certificate of Hygiene, a Certificate of Free Sale or a Certificate of Inspection.
On another note, it’s very important to highlight that Lebanese exports benefit from tariff-free access to the US under the Generalized System of Preferences (GSP). Lebanese exports to the US reached USD 66 million in 2017, from which USD 33 million (50 percent) were food and beverages. We encourage Lebanese exporters to contact us to learn more about the GSP program.
Can you share a few statistics on the amount of Lebanese goods exported to the states? What is the percentage of F&B related products?
The US was Lebanon’s largest trading partner between 2008 and 2012. It is currently Lebanon’s third-largest trading partner, with US exports exceeding USD 1.4 billion, behind China and Italy, and ahead of Germany, France and Greece. US firms credit the growth in US exports to the excellent reputation of US products in terms of quality and price. Major US exports to Lebanon in 2017 included USD 452 million worth of mineral products, USD 362 million worth of automotive products, USD 112 million worth of machinery and electrical instruments, USD 74 million worth of medical products, and USD 112 million food and beverages, constituting 8 percent of total US exports to Lebanon. Lebanon exports approximately USD 65 million in goods and services to the US, of which food and beverage products accounted for half of Lebanese exports, followed by jewelery exports, reaching USD 9 million.
Can you tell us about the Selectusa event in June and how Lebanese investors can participate?
Selectusa is a US governmentwide program organized by the US Department of Commerce from June 20 to 22, 2018, in Washington DC. Its objective is to help companies of all sizes find the information they need to make decisions, connect to the right people in the US and navigate the federal regulatory system to promote foreign direct investment (FDI) in the US. The summit’s theme for 2018 is ‘Invest Here. Grow Here. Succeed Here’.
Since its inception, Selectusa has facilitated more than USD 22.5 billion in investments in the US. The 2017 Summit attracted more than 3,000 attendees, including more than 1,200 global investors from 64 different markets and more than 600 economic development officials from 51 states and territories. We encourage Lebanese investors to attend the June Selectusa conference.
Lebanese exports to the US reached USD 66 million in 2017, from which USD 33 million were food and beverages
Major US exports to Lebanon in 2017 included USD 112 million worth of machinery and electrical instruments and USD 112 million food and beverages