6:09 PM First barter countertrade | |
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"The percentage of sales from General Motors countertrade sector is very small indeed, but he grew with impressive," said David H. Hill, president Motors Trading Corp.. Dozens of giant companies in the U.S., according to Business Week magazine (July 19), busy-busy now also established a subsidiary, such as Motors Trading to handle countertrade activities. General Electric, a producer of high technology such as jet aircraft engines for example, last March established the General Electric Trading Co.. With branches in 30 countries, GE Trading prioritize high technology exports such as lights to the transformer which is worth U.S. $ 200 million annually. Within five years the company hopes to achieve annual revenue of U.S. $ 2 billion. GE Trading is now also the parent company to take over the obligation to countertrade in 18 countries. From Romania, who bought the GE steam turbines made U.S. $ 150 million, for example, GE Trading took thousands of tons of cement are marketed to the Middle East region. GE subsidiaries were also involved in development programs Romanian shipyard. "They want to build a ship, and we are willing to sell it in the world market," said George J. Stathakis, President of GE Trading. In the beginning was only the Soviet bloc of socialist countries that apply such reciprocal trade. But now the bartering trend was followed also by the Third World - such as Brazil and Indonesia - and a number of industrialized countries - like Canada, Switzerland and Sweden. In this way developing countries are hard sell trying to penetrate the fortress of the traditional commodity industrial country protectionism. That way they will also try to meet the shortage of capital goods - such as machinery and heavy equipment - without having to spend foreign exchange reserves. Libya and Algeria, a member of OPEC, tried to get the machines from Europe and trucks from Japan, for example, in exchange for oil. Through this way they managed to sell the oil without having to slam the OPEC benchmark price of U.S. $ 34 per barrel. While Iran is interested in the New Zealand frozen lamb meat to obtain U.S. $ 200 million this year which will trade with crude oil as well. For developed countries such as Canada, reciprocal trade efforts encourage domestic industries. When approved the purchase of a number of aircraft the F-18 Hornet fighter made by McDonnell Douglas valued at U.S. $ 2.4 billion, the country requesting American-owned factory had made a number of businesses worth U.S. $ 2.9 billion for the benefit of Canada. McDonnell Douglas, for example, are required to entrust the manufacture of a number of F-18 spare parts worth U.S. $ 349 million to the aircraft manufacturer Canadair, Canada. And the U.S. aircraft manufacturer was not required to directly buy Canadian products, but only served to help find markets for the industry. It resembles countertrade barter activity in the past: each transaction carried out without shrinking foreign exchange reserves. Of course, it is difficult for industrialized countries to foster foreign exchange as much as possible. That's why Lionel H. Olmer, U.S. Under Secretary for International Trade affairs countertrade denounced as "business at its worst, the very opposite of an open international trade commitments." U.S. Treasury Department, according to an officials, tend to reject the countertrade. He charged that it would also mess up the Joint Agreement on Tariffs and Trade sector (GATT) which had been approved. Although the Reagan administration has not formally indicated his attitude, countertrade which now reaches about 30% of the total volume of world trade remains smooth running. Without encountering resistance from Washington, Occidental Petroleum Corp.. even recently agreed a package of reciprocity with the Soviet Union. According to the agreement, Oxy required to buy ammonia that will sell to anywhere. Ammonia came from the factory set up Oxy in the Soviet Union. In addition to the 20-year agreement, Oxy super posphate exporting fertilizers from the U.S. to the Soviet Union. Various U.S. commercial banks is now on its own plunge in reciprocal activity as mediators which bring together the interests of buyers and sellers to earn commissions. Countertrade department at Citibank who headed George S. Horton, for instance, make every effort to provide banking information services to its customers (sellers) to identify the credibility of the buyer. Unlike in Japan, banks in the U.S. has not been allowed to have an interest (stake) directly or indirectly in the company's trading. But if next year Congress passed the Export Trading Act Comnany., Which allows commercial banks has a direct interest in the company's trading, it is estimated that more U.S. commercial banks engage in countertrade. Northrop Corp., The U.S. airline industry, appearing earlier in this kind of trading activity. Reciprocal trading strategies of this company directly designed at its plant in Hawthorne, California, starting in 1975 when Swiss buying the F-5 fighter aircraft riger product. Northrop then helped peddle Switzerland 150 thousand kinds of products to 80 countries with export value of U.S. $ 209 million. In Egypt, for example, combat aircraft industry it helped sell the former Swiss elevator. In short Northrop representatives in various countries "have a lot to take the time to introduce the seller company (Swiss buyer to the company," said George Reed, head of the program at Northrop. Currently, Northrop, for example, to persuade Turkey to buy the installation of steel foundry U.S. $ 20 million Swiss-made. In Indonesia, Northrop reportedly tried to help Holderbank (Switzerland) organized a cement plant worth U.S. $ 100 million - with Holderbank capital investment of U.S. $ 70 million. Such a move also made Tecnotrade Italian company which obtained a contract to expand the capacity of coal mines , fix a rail, and port facilities in China worth U.S. $ 500 million. Instead Tecnotrade obliged to market thousands of tons of coal from the mine into the world market. Indonesia as a newcomer in this trading activity is still having trouble with Mitsubishi that has not been willing to take a number of commodities worth U.S. $ 200 million in exchange for fertilizer imports. Even in some countries countertrade show good results, not all executives of transnational corporations are interested in this kind of trading practices. But for Stathakis, President of GE Trading, what is important is the efforts of mutual benefit. "If we managed to increase exports of jet aircraft engines by 50%, that's better than nothing, "he said. Opinions are more philosophical about countertrade according to Robert D. Westfall, Deputy Dir-Ut Security Pacific National Bank, Los Angeles." I never think barter will replace the role of money, "he said." Instead the money was created to replace the barter trade. " | |
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