Market Development Cooperator Program

MDCP first authorized in 1988, funded in 1993

Enabling legislation:Omnibus Trade and Competitiveness Act of 1988:MDCP is to be a unique way to "develop, maintain and expand foreign markets for nonagricultural U.S. goods and services." 15 U.S.C. Sec. 4723

Funding: Jobs Through Exports Act of 1992 andFreedom Support Act of 1992:First MDCP awards, totaling over $2 million, were made in fiscal 1993

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Market Development Cooperator Program (MDCP)

Cooperator

Targeted foreignmarkets

$300,000 Trade associations

Each year the International Trade Administration (ITA) selects 7-9 trade associations and other non-profits industry groups for awards of up to $300,000 each.

MDCP award recipients, “cooperators”, design projects to help small firms (SMEs) to export to targeted foreign markets.

Project activities vary depending on the industry a cooperator is helping and the markets targeted. Examples include:

- Participating in foreign trade shows- Opening a product demo center- Coordinating industry standards

SMEs

SMEs export

Cooperator

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Cooperator

MDCP Public-private partnership

ITA .

Trade associations Chambers of commerce State trade departments Other non-profits

MDCP encourages industry groups to partner with ITA

Targeted foreignmarkets

Export multipliers: industry groups that do not export, but whose companies or business constituents do export

Cooperator projects strengthen the global competitiveness of a U.S. industry, not just a particular company

Each MDCP project team includes ITA and other federal specialists who work shoulder-to-shoulder with a cooperator

SMEs export

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Market Development Cooperator Program (MDCP)

CooperatorOther federal

agencies

I&AIndustry & Analysis

GMGlobal Markets

Project activities helpsmall U.S. firms export

Targeted foreignmarkets

Non-profit industry groups compete for MDCP awards from ITA:

Up to $300,000

Partner w/federal agenciesen

Applications due: Februaryen

“Cooperators” commit to:

Projects to engage small

. firms in exporting

Term: 3 years

Two-thirds of total cost

Joint team coordination

$1

ITA .

Trade associations Chambers of commerce State trade departments. Other non-profits

Report export results

Project-generated exports per $1 of MDCP award

Product demo centerTrade mission Technical seminar

Foreign trade showIndustry standardsForeign rep office

$327Report export results

Evaluation Criteria

20% Potential to generate exports that . . . . . create or sustain U.S. jobs

20% Export performance measurement

20% ITA partnership & priorities

20% Creativity & institutional capacity

20% Budget, match, sustainability

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2014 ITA Priorities

1. Create or sustain U.S. jobs by increasing or maintaining exports

3. Increase exports by any of the following U.S. industries:

Aerospace Transportation equipment Health/medical products/services Chemicals Processed foods Education Design/construction products/services Energy/environmental products/services Information/communications technology Media/entertainment Machinery/equipment Professional services Travel/tourism Logistics/distribution services

4. Help U.S. businesses to secure export financing

5. Engage more U.S. firms in major international trade shows and other significant foreign outreach activities

6. Help current exporters to expand to more markets

2. Major emerging markets with rapid growth and new customers such as: (see map)

Required priorities:1+

Any 2 of 2-6

7. Address non-tariff barriers to U.S. exports such as discriminatory regulations, local content requirements, and technical requirements

8. Secure strong intellectual property rights protection and combat counterfeiting and piracy

9. Counter discriminatory trade policies such as "indigenous innovation"

10. Shape and encourage the adoption of standards outside the United States that are industry-developed, market-driven, science-based, and internationally recognized.

Other priorities, 7-10, none of which is

required:

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MDCP evaluation and debriefing

GMGlobal Markets

I&AIndustry & Analysis

-Foreign posts-U.S. Export Assistance Ctrs-Country desks-Advocacy Ctr

-Industry specialists-OPCM/MDCP-Intellectual property-Standards-Industry Advisory Committees

MDCP Merit

Review Panel I&A

Assistant Secretary

Top ranked

Unsuccessful applicants

Award announcement: -Members of Congress-DOC press release-Industry events

GMGlobal Markets

I&AIndustry & Analysis

-Foreign posts-U.S. Export Assistance Ctrs

-Industry specialists-OPCM/MDCP

Comments

Debriefing

20% Potential to enhance competitiveness

20% Performance measurement

20% ITA partnership & priorities

20% Creativity & institutional capacity

20% Budget, match, sustainability

Due: mid-February September October project start

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1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

MDCP awards funded

MDCP awards funded

Total project funding 1993-2013

Over the years cooperators have targeted 70 different markets (only the top 40 appear in the tag cloud above)

China has overtaken Mexico as the market most often targeted by cooperatorsOther markets recently popular: Brazil, UAE, Indonesia

Markets targeted by cooperators 1993-2011

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MDCP examples of projects

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SFSA’s MDCP project activity in the International Organization for Standardization (ISO) helped U.S. makers of various steel products increase exports by $129 m.

AEM leveraged an MDCP award to open a Beijing office from which its staff reviews trade journals for construction bid opportunities in China and makes them available to AEM members via its website

Steel products to Europe

Construction equipment to China

MDCP RVs in China, Japan, Korea

Temp Solution for PermsThe Recreation Vehicle Industry Association (RVIA) received $300,000 in MDCP. One year into the project, RVIA has now hired a full-time representative who lives and works in East Asia. To date the project has generated $7 million in exports. Sales measured in hundreds of millions of dollars per year are on the horizon, especially in China, but not until China addresses standards and regulatory issues. Through the MDCP project, ITA is helping RVIA remove barriers.

RVIA helped a member company sell this temporary beauty shop that replaces one destroyed in the recent tsunami.

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MDCP specialty auto equipment to Gulf States & China

Measuring session & trade showsITA is helping the Specialty Equipment Market Association (SEMA) boost export to the Gulf States and to China. Rules on what is “street-legal” and who is authorized to customize a vehicle, e.g. vehicle manufacturer or local auto shop, are issues SEMA is addressing with ITA’s help.

U.S. specialty auto equipment makers measure a Toyota Hi-Lux 4x4 truck. ITA helped SEMA get special permission to import the truck temporarily in the United States. The vehicle is not authorized for U.S. sale but is the highest selling vehicle worldwide that is likely to be customized.

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Commitment and sustainability

A cooperator must commit to provide at least two thirds of the resources required to undertake the project

At 67% of project cost, MDCP’s cost share requires commitment

Minimum requirement

Actual

0% 20%

40%

60%

80%

100%

67%

73%

33%

27%

CooperatorITA

Still operating today

Continued after MDCP

project

Footholds undertaken

0 2 4 6 8 10 12 14 16 18 20

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18Sustainability is evident in the foreign presence (foothold) that we have helped industry groups to establish abroad

_______________________________________________

Brad HessDirector, Market Development Cooperator ProgramIndustry & Analysis1401 Constitution Ave., NW, rm 4320Washington, DC  20230T  202-482-2969M  202-384-0491

Market Development Cooperator Program (MDCP)