Asha Advocates for a Home-Country Company in Difficulty
Asha was extremely concerned. She was spending a couple of weeks back in Africa, and her latest business meeting was with Kwame, managing director of a medium-sized exporting company, who told Asha that his business could not survive much longer unless his problem was resolved.
Kwame had been selling his medical products into Europe for nearly 10 years and had obtained all the required European certifications and import approvals. But his parent company had been acquired by a larger group, and this had led the authorities in Asha’s host country to revoke the import licence. Kwame’s goods were sitting in a warehouse at a European airport unable to be released, causing high warehouse costs.
He was due to travel to Europe next week, so Asha suggested that she arrange a meeting with the medical imports approvals agency. Kwame agreed, and a week later they went together to the approvals agency.
The presence of Asha helped to ensure a fair hearing. The officials were embarrassed by the situation and offered to review the case. They realized that the change in ownership had not affected the technical specification, and the import licence should not have been revoked. A week later, the goods were cleared, and a grateful Kwame thanked Asha sincerely for all her help.
Key Points
High-level lobbying can be deployed to support tenders, but stay even- handed if there is more than one bidder from the home country.
Trade representatives sometimes become involved in bilateral trade negotiations, usually working with the embassy’s trade policy expert.
Encourage companies to avoid trade dispute court proceedings through conciliation or arbitration.
If a trade dispute involves the host government, make an informal approach to the relevant ministry or agency, with a view to achieving amicable resolution.
If services are readily available from commercial providers, refer exporters to them.
Checklist: Dealing with tenders
Find out about the tender before it is issued; tip off interested companies at home.
Understand eligibility requirements.
Be even-handed regarding competing bids from home country.
Encourage competing companies in the home country to join forces as one national bid.
Facilitate consortia in which companies from the home country might form part of a joint bid with companies in the host country.
If there is any hint of bribery or corruption, advise companies not to bid.
Agree with companies what help they need and when they need it.
Ensure that a local expert, usually a lawyer, checks bids before they are submitted.
Understand which authorities will be involved in the decision-making process and seek out opportunities to establish closer links with them.
Encourage a minister in the home country or the head of mission to write a letter of support for the home company.
Ensure that the home country government and exporters know of any offers of export credit or aid by other countries.
NEXT PAGE
Inward Investment
NEXT PAGE