Biz Republic Magazine 2019

SEPTEMBER 29, 2019

MILLENNIALS

TO MAKE UP 75% OF GLOBAL WORKFORCE BY 2025 HAPPENING IN THE USA

TIGHT LABOR IN THE CONSTRUCTION MARKET PACIFIC ALLIANCE

COUNTRIES ACCELERATE PACE IN THE MIDST OF GLOBAL CHALLENGES

HOPE M. FIELD

IN CELEBRATION OF HISPANIC HERITAGE MONTH www.bizrepublic.com

3

2

biz republic

|

International Magazine, September 2019

Copyright © 2010-2016 PPT Backgrounds, All Rights Reserved.

MEETINGS, EXHIBITIONS, CONFERENCES & INCENTIVE TRIPS

Biz Republic & Co. all rights reserved. ©2018-USA N2901-0518

V.I.P. BIZ CONNECTIONS VISIT THE WORLD’S 8TH WONDER & WORLD’S BEST GASTRONOMY

hudsonchamber.org | info@hudsonchamber.com | 201.875.0220

www.bizrepublic.com

3

MAGAZINE

Useful information for business owners and companies to learn to ‘deal’ with Generation Y.

6

12

14

23

21

29

31

32

39

Economic Policy Pacific Alliance countries accelerate pace in the midst of global challenges

42

44

Analysis Peru - US Trade Relationship: 10th anniver sary of Trade Promotion Agreement.

Trade Global trade slows under shadow of protectionism

Your country The Americas and the Caribbean – A quick Look!

Patents USPTO Announces New Trademark Rule Latino Vote Our Vote Matters!

Growth Peru: A Booming Economy Fueled by its Exports Interview Hope M. Field. Senior Manager, Office of Latin Affairs - The Coca-Cola Company.

46

Construction Tight labor in the construction market

Real Estate Looking at the Real Estate Market with Optimism-2021 Education Rennert Language Programs Open a World of Possibilities

47

Millennials

A future scientist: Andrea Mora, the American

dream come true.

49

51

59

60

Millennials To Make Up 75% of global workforce.

Are companies ready?

Business Global Business of the ‘Green Gold’ to move more than US $166 billion by 2025 Fashion Color Trend for Spring/ Summer 2020 Health Be Aware of the Danger in Vaping

Infrastructure State of Canadian and United States Construction

Biz Republic Founder/Director: Heidi Castrillon Director: Carlos Ramos Editor: Milko Leon Creative Director: Emil Lezama Social Media Manager: Dario Cantos Executive Assistant: Rafael Rivas Translation Director: Jonathan Herron, Associate Translator: Vanessa Guillen Financial & Economic Columnist: Isaac Cohen Columnist: Angiolina Galluccio Writers: Bennet Reis Producers Design: Lezama Group - New York, Grupo Publicrea - Lima Print Production: Octavio Flores, PublimaxPrinting.com, READERS PLEASE NOTE: The views expressed in articles are the authors and not necessary those of the Biz Republic Magazine. Authors may have consulting or other business relationships with the companies they discuss. No Part of this publication may be reproduced or transmitted in any form or by any means digital, social, or print, without written permission. Copyright 2019© BIZ LEAD LLC. / Biz Republic. All rights Reserved. ISSN 1757-3395 NY/NJ.USA

REPUBLIC has been quietly killing it” Since 2008

Biz | EDITORIAL

T

Heidi Castrillon Founder/Director

he United States has always been a nation of immigrants. This is stated in official history and statistics.

In fact, the United States already had 9.2 million immigrants in 1890, exactly 129 years ago, during the government of Republican President Benjamin Harrison and at a time immigration reached its highest peak of 14.8% of the total nation’s population (today around 13.6% of the total US population); so the migration phenomenon, with its pros and cons, accompanies practically since our nation’s foundation, more than 243 years ago, the economic, political, social, and cultural performance of the United States of America.

Currently, the United States is home to more immigrants than any other nation in the world and that is no small fact.

Almost 90 million people living in the United States have in some way or another, immigrant origin, and that amount, by way of comparison alone, is greater than the total population of Canada, Chile and Peru combined. From that universe of people with immigrant roots some 44.4 million were born abroad and the rest, children with at least one immigrant parent, were born in the United States. You just have to look at the fact that more than 20% of the population in the States of California, Florida, New Jersey, and New York were born abroad to realize the great impact and dimension that immigration has in the ‘future history’ of the United States.

population began to grow exponentially, quadrupling since then to the point that the country now has foreigners of almost all nationalities. The United States immigration amnesty by Republican Ronald Reagan undoubtedly contributed to the increase in number of immigrants, which through the Immigration Reform and Control Act (IRCA) of 1986, gave citizenship to millions of undocumented immigrants.

It is true that immigration to the United States today is different from yesterday. In 1910, for example, 9 out of 10 foreigners arriving in the United States were European: 18.5% of immigrants came from Germany, 12.4% were Austro-Hungarians, 11.9% came from Russia, 10% were Irish , 9.9% Italians, 9.3% Scandinavians, 9% from the United Kingdom and Canada, and 6.2% came from other countries in Europe, with very few immigrants arriving at that time from Asia, Mexico, Central and South America. Today, however, only one in ten immigrants comes from Europe and most come from Asia and Latin America.

A recent projection by think tank Pew Research Center indicates that by 2065 Asians will be the majority of the immigrant population in the United States (totaling almost 38%), ahead of Hispanics (31%) and other ethnicities. A Pew survey also revealed that 59% of American adults believe that immigrants, with their talent and work, strengthen the country, In 1965 when the United States while 34% consider immigrants put aside the old system of quo- a burden. tas for nations, the immigrant

bizrepublic.com | info@bizrepublic.com Tel: 201.875.0220 © 2019 BIZ REPUBLIC

|

B I Z L E A D L LC . A L L R I G HTS R E S E RV E D. NY / N J - U S A

Over the past decade immigration has had positive effects on innovation levels in the United States, according to research conducted by the American Economic Association (AEA).

Immigrants have started nearly half of America’s 50 top venture-funded companies and are key members of management or product development teams in more than 75 percent of our country’s leading, cutting-edge companies, also revealed by an investigation by the National Foundation for American Policy (NFAP). Finally, a 30-year analysis of data from 15 countries in Western Europe refutes that immigrants are a burden. “If migrants are not received, the economy can get worse,” said Hippolyte d’Albis, Professor at the Paris School of Economics and Senior Researcher at the French National Center for Research (CNRS).

In this context, rather than fueling the controversy, what is needed is to raise ideas and alternatives to reduce the impact of immigration through policies that allow for safe borders but, at the same time, have immigrants more committed and consistent with the country’s objectives, respectful of the law, and able to contribute not only with the demand for goods and services, but in other areas, to the growth of the United States.

If every year, more than one million immigrants arrive in the United States from different parts of the planet, let’s do what is necessary together so that their arrival is not a burden but rather a boost in gross domestic product (GDP). This is a challenging, but achievable goal.

HOPE M. FIELD’S COVER photography by: ©2019 Alexander Morta.

BIZ Republic Magazime copyright 2019©

5

economic policy

Chile, Colombia, Mexico and Peru make up one of the most successful trade blocs in the world

XIV Pacific Alliance Summit in the city of Lima (Peru), July 6th, 2019. | Photo: Presidency of Peru (Flickr)

62

biz republic

|

International Magazine, September 2019

▶

PACIFIC ALLIANCE COUNTRIES ACCELERATE PACE IN THE MIDST OF GLOBAL CHALLENGES PACIFIC ALLIANCE CONSOLIDATED AS TRADE BLOC WITH STRATEGIC PROJECTIONS TO THE WORLD.

W

ithin the framework of the XIV Pacific Alliance Summit held from July 1st to July 6th, 2019, the regional bloc, considered one of the most successful in the world, flexed its muscles in the face of global challenges by signing statements with the Union European, the Eurasian Economic Commission, the Organization for Economic Cooperation and Development (OECD) and Japan, in addition to signing a statement on environmental issues.

At the summit, the Presidents of Chile, Sebastián Piñera Echenique; Colombia, Iván Duque Márquez; Mexico, Andrés Manuel López Obrador; and Peru, Martín Vizcarra Cornejo, expressed their satisfaction for the approval of the 2030 Strategic Vision Work Plan, which establishes a road map of the Pacific Alliance with an aim at being more integrated, more global, more connected, and more citizen-involved; with the aim of closing trade negotiations in 2019 with candidates for Associated States to the Pacific Allianc, Australia, Canada, New Zealand and Singapore.

They also welcomed Ecuador as a new candidate to become an Associated State of the Pacific Alliance, with a view to their future membership as a full member, which constitutes an important step towards strengthening the Alliance. The leaders of Chile, Colombia, Mexico and Peru also declared their satisfaction with the incorporation of Armenia, Azerbaijan, the Philippines and Kazakhstan as new Observer States of the Pacific Alliance, currently with 59 countries on five continents listed as observers. This consolidates the role of the Pacific Alliance as an economic and trade platform with

strategic projection to the world.

The Pacific Alliance Presidential Declaration was signed at the Summit on the Sustainable Management of Plastics, an instrument that exemplifies the sustained commitment of the Pacific Alliance and Observer States to the achievement of 2030 Agenda and the Sustainable Development Goals of the United Nations Organization. In the Declaration of Lima, the four Presidents of the Alliance expressed their appreciation to the Working Group on Harmonization of the Plastic Industry and Circular Economy, created by the Business Council of the Pacific Alliance (CEAP) to meet the challenges of these issues and accompany the efforts committed by governments in the Pacific Alliance Presidential Declaration on the Sustainable Management of Plastics.

A YEAR OF ACHIEVEMENTS Over the past year, the regional bloc composed of Chile, Colombia, Mexico, and Peru has put into effect an agreement that establishes the Pacific Alliance Cooperation Fund, which promotes new projects and initiatives for the benefit of the public. Likewise, it launched the Cooperation Council, a mechanism that boosts and makes the relationship with Observer States more efficient; and promotes the implementation of cooperation programs and projects.

Another of the Alliance’s achievements in recent months has been the allocation of

resources, through the Entrepreneurial Capital Fund, for the first eight MSMEs that will be able to finance and develop their projects. Also there was the implementation of an electronic scheme for the interoperability of certificates of origin and phytosanitary certificates, which eliminates the use of paper in foreign trade operations that require them.

More than 400 businessmen attended the VII PACIFIC ALLIANCE Summit.

The Pacific Alliance has also published the Public Policy Index for the Development of SMEs in the past year in coordination with the Organization for Economic Cooperation and Development (OECD), with the support of the Bank of Development of Latin America (CAF) and the Latin American and Caribbean Economic System (SELA). The heads of state of the Alliance also highlighted the launch of the “Export Access” Platform, which allows access to information on non-tariff requirements of more than 900 products; facilitating the identification of business opportunities throughout the American region.

The leaders considered it essential to have organized the IV Forum of the Pabizrepublic.com

7

BIZ | INNOVATION

VII Pacific Alliance Business Summit in the city of Arequipa (Peru), July 10th, 2019. | Photo: Pacific Alliance (Flickr)

Chile, Colombia, Mexico and Peru decided to work as partners rather than as competitors.

cific Alliance of Tourism Statistics, whose main objective was the exchange of statistical data to strengthen decision-making regarding tourism policy of member countries of the Pacific Alliance. Likewise, they highlighted the signing of the Pacific Alliance Memorandum of Understanding on Cooperation in Media, through which National Television in Chile, National Radio-Television of Colombia, the Public Broadcasting System of Mexico and the National Radio and Television Institute of Peru express their desire to collaborate for reciprocal benefits.

VII BUSINESS SUMMIT IN AREQUIPA After the XIV Lima Summit, the 7th Pacific Alliance Business Summit was held on July 10th and 11th in the Peruvian city of Arequipa.

The event was a trade platform attended by more than 400 entrepreneurs, including buyers and exporters from the agro-industrial, clothing and manufacturing sectors of Chile, Colombia,

8

biz republic

Mexico, Peru, as well as entrepreneurs from China, Japan, South Korea, India, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Australia and New Zealand. The purpose of the event was to promote regional trade and the export offerings of the Pacific Alliance to other economies, mainly Asia-Pacific.

The business summit was organized by the Export Promotion Directorate of Chile (ProChile), ProColombia, a Colombian government agency, the Ministry of Economy of Mexico and the Commission for the Promotion of Peru for Export and Tourism (Promperú), and generated more than 2,500 business contacts. Luis Torres Paz, executive president of PromPerú said that the success of the summit reflects, “the importance of the joint work that has been done in the bloc and the great interest in doing business with the guest countries of Asia-Pacific one of the fundamental regions to the global economy and that must be well exploited ”

MORE PARTNERS THAN COMPETITORS Work as partners rather than competitors, using regional integration as a tool to achieve growth and development which is sustainable over time. That was a bold decision that Chile, Colombia, Mexico and Peru made in 2011 and that led them to found, after hard deliberations, the Pacific Alliance as an economic and trade platform with projections towards the Asia-Pacific region and, in addition, as a mechanism that allows the free movement of goods, services, capital and people progressively.

This regional initiative formed by countries highly committed to democracy and free market principles, prerequisites for building an economic and trade bloc, has celebrated its eighth anniversary on April 28th, advancing vigorously in the fulfillment of its foundational objectives. Today, it is the eighth largest economy in the world, totaling 225.3 million people, a combined GDP of nearly two trillion dollars and an average GDP per capita of $18,921.

Although trade blocs such as the Pacific Alliance normally slow down after the initial years, the Alliance still presents itself as a concrete, ambitious, and effective trade bloc that provides great benefits, although there is a lot of work ahead of it: Chile, Colombia, Mexico, and Peru are classified as

PACIFIC ALLIANCE becomes established as a commercial platform with strategic projection to the world.

middle-high income economies, but wealth is not well distributed in them. In fact, 11% of Chilean inhabitants are poor and 21% of the Peruvian population survive in this critical condition. In Colombia and Mexico, the poverty rate reaches 30% and 42%, respectively.

Another pending task is the low participation of women in the workforce of Pacific Alliance nations, which exerts a decrease in economic and social progress. Integrating women into formal economic sectors would increase growth and increase productivity. It is also especially imperative for Pacific Alliance nations to focus on reforming education systems, currently with poor performance in most educational classifications.

Marcelo Ebrard and Graciela MĂĄrquez, Secretaries of Foreign Affairs and Economy of Mexico, respectively, at the 21st Meeting of the Council of Ministers of the Pacific Alliance, in Mexico City. | Photo: Pacific Alliance (Flickr).

CHILE - LEADER IN FOREIGN DIRECT INVESTMENT Foreign direct investment (FDI), a fundamental indicator in a country’s economy and a strategic variable in the behavior of markets and social dynamics, continues to grow in the Pacific Alliance. Not surprisingly, the member countries of the bloc occupy at the Latin American level the four best positions of the Ease of Doing Business Index, recently published in Doing Business 2019 of the World Bank.

The member country of this solid regional bloc that presents, greatly surpassing the others, the largest foreign direct investment in terms of percentage of its gross domestic product is Chile, one of the most functional Latin American economies, with 102 percent. Second place in foreign direct investment as a percentage of GDP in the Pacific Alliance is Colombia, a country with an acceptable economic growth, with a ratio of 58 percent.

48th Meeting of the High Level Group (GAN) of the Pacific Alliance, held at the headquarters of the Ministry of Foreign Affairs of Peru, in the city of Lima. | Photo: Peruvian Foreign Ministry (Flickr)

Mexico and Peru have fairly similar levels of foreign direct investment over gross domestic product, with values of 48 and 46 percent, respectively. However, while Peru has more diversified business partners, Mexico relies heavily on its exports

3

VII Macro-Round TABLE OF BUSINESS OF THE PACIFIC ALLIANCE IN THE CITY OF bizrepublic.com AREQUIPA (PERU). JULY 10, 2019. | Photo: Pacific Alliance (Flickr)

to the United States- 87% of its shipments are directed there.

Likewise, in the coming decades, sustained population growth is expected, bringing the Pacific Alliance population to 265 million, which is equivalent to a greater percentage of people of working age with respect to the total population.

This will produce a “demographic dividend” which, if used, could be an element in favor of more dynamic economic growth. However, Alliance countries need to act decisively to increase productivity and deepen the transformation of a commodity-based economy into an open, diversified economy that promotes the well-being of its population.

SME CONSOLIDATION On the other hand, in the framework of the 21st Meeting of the Council of Ministers of the Pacific Alliance held last May in Mexico, new steps were taken to consolidate small and medium enterprises (SMEs) of countries belonging to the bloc, through the implementation of the Cooperation Fund, which allows for the development and financing of SME joint projects.

According to the Strategic Vision through 2030, SMEs are considered the engine of regional trade, so they are granted business facilities. It should be noted that the first agreement of the Council of Ministers of the Pacific Alliance was to create a fund of one million dollars for joint projects ai-

10

biz republic

med at strengthening the capacities of these productive units; seed capital that is expected to begin to take root so that SMEs can see robust growth.

PACIFIC ALLIANCE AND MERCOSUR

the countries of the Pacific Alliance, with a 3.8% growth, above that expected for Chile (3.5%), Colombia (3.5%), and Mexico (1.7%). By 2020, Peru will continue to lead growth among the countries of the regional bloc with 3.9% growth, ahead of Colombia (3.7%), Chile (3.1%) and Mexico (2.0% ).

MERCOSUR (Argentina, Brazil, Paraguay, and Uruguay) and the Pacific Alliance, the two main economic blocs in Latin America, have been consolidating for years and, despite their differences, try to deepen their economic relations pointing towards the formation of a market that concentrates 85% of the region’s GDP. MERCOSUR was born 28 years ago under the leadership of Argentina and Brazil that, at that time, produced as much as China: today, they only generate a fifth of the Asian giant, paralysis that marked the dynamics of MERCOSUR for many years and forced its members to look abroad.

While MERCOSUR, according to the opinion of some analysts, has been losing dynamism and transcendence for at least a decade and a large part of the Treaty of Asuncion that created it (March 1991) is a dead due to breaches by its own partners, with the Pacific Alliance, the sky is more than clear and it is estimated that Peru will be the country with the highest growth in the 2019-2020 period.

Precisely, the World Bank recently projected that the Peruvian economy will register the largest expansion in 2019 among

Minister of Foreign Affairs of Peru, Néstor Popolizio Bardales in the middle), inaugurated with the Vice Minister of Foreign Trade, Sayuri Bayona Matsuda, the I Technical Forum of Cooperation of the Pacific Alliance with its Observer States, on April 23rd, 2019. | Photo: Peruvian Foreign Ministry (Flickr)

bizrepublic.com

11

analysis PERU - US TRADE RELATIONSHIP: 10TH ANNIVERSARY OF TRADE PROMOTION AGREEMENT Ambassador Hugo Claudio de Zela Martínez

S

ince 1826, Peru and the United States share diplomatic relations founded on our common values of Democracy and Freedom, the promotion of Hemispheric Peace and Security, and the longstanding common goal of achieving prosperity for our people through economic growth, based on a mutually beneficial and profound trade relation.

Economic ties are among the many important aspects of our bilateral relations. As a matter of fact, 2019 marks a cornerstone as the Governments of Peru and the United States commemorate the 10th anniversary of the Free Trade Agreement (FTA).

The reasoning behind the signing of the trade agreement was to secure access for Peru’s exports to a market of 300 million consumers; as well as to guarantee permanent tariffs’ exemptions from which we were already benefiting, on a temporary basis, through the Andean Trade Promotion and Drug Eradication Act (ATPDEA), previously known as Andean Trade Preference Act (ATPA).

It was also the first time we negotiated such a comprehensive agreement that included provisions in all aspects of our bilateral economic relationship: from trade in goods to investments and intellectual property, even incorporating groundbreaking provisions concerning the protection of the environment and labor rights, as highlighted by the United States Trade Re-

12

biz republic

presentative. Moreover, after concluding the negotiation process, a substantive change occurred in US Congressional Leadership, prompting supplementary negotiations and adjustments that, in the end, allowed us to reach the agreement that is currently in place.

kewise, the US has become an important supplier of raw materials and intermediate products (65%), and capital goods and construction materials (25%), which in turn enhance the productivity of Peruvian industries, making our bilateral trade relationship one of the most complementary.

Peru is a rich and megadiverse country with immense natural resources. It is the largest producer of zinc, silver, and fish oil and the second largest exporter of copper and lead. For this reason, it was predictable that our initial step was going to be to consolidate our position as exporters of traditional goods. However, it was a priority to improve the competitiveness of our companies and add value to our exports, which we can now proudly acknowledge that we are in the process of achieving. Since the Peru - US FTA came into effect, our non-traditional exports have increased by more than 10 percentage points, representing 43% of the total in the last year.

In 2018, one third of our agricultural exports were destined to the US market. Additionally, Peru exported US $25 million in fruits: bananas, avocados, blueberries and grapes. Since 2009, the shipments of Peruvian avocados, grapes, and mangoes to this market have grown more than 500% in total and some products that were not exported before, such as blueberries and paprika, have rapidly become popular.

Ten years after the FTA came into effect, bilateral trade reached a landmark US $17 billion in 2018. More importantly, the United States has consolidated itself as our main market for non-traditional products and our primary market for value-added goods such as agricultural exports, fisheries and textiles; all of which have significantly boosted our competitiveness and contributed to the generation of more and better opportunities for our country. Li-

We have achieved a considerable presence in the markets of asparagus, blueberries and grapes. There are still opportunities to continue improving our participation in other areas, such as coffee and avocados, where Peru’s market share is below 10%. Furthermore, there are other business opportunities worth considering for new products that are highly demanded by American consumers, such as palm oil and watermelon. Peruvian businesses must consider the possibility of expanding their shipments to include the United States.

I would like to emphasize the learning process that has taken place these last 10 years. Negotiating, signing and imple-

Hugo de Zela (Photo: Ministry of Foreign Affairs, Peru)

menting the agreement represented a major commitment for our country’s development through its participation in international trade networks. We have achieved important progress in adding value to our exports and improving our companies’ productivity.

However, we know that we need to keep working in these areas, while promoting additional efforts in other essential aspects like innovation, technology transfer and improvement of human resources, among others.

There are many reasons to believe that we can take advantage of the opportunities to establish even stronger commercial ties with the United States. This will allow us to maximize our potential as business partners, especially by attracting greater investment and promoting bilateral trade in areas such as agriculture, infrastructure, energy, mining, and finance.

HUGO DE ZELA. Degree in International Relations from the Diplomatic Academy of Peru. He has studies in Economic and Administrative Sciences at the Universidad de la República Oriental del Uruguay, as well as doctorate studies in Political Sciences at the Universidad del Salvador in Argentina. A career diplomat with 42 years of service, he has served as permanent representative to the Organization of American States (OAS), Peru’s ambassador to Brazil and Argentina, Peru’s national coordinator in the Rio Group, as well as a member of Peru’s delegation in border negotiations twith Ecuador from 1997-1998. He has also served as chief of staff of the General Secretariat of the Organization of American States on two occasions, from 1989 to 1994 and 2011 to 2015.

From April 5, 2018, to April 21, 2019, he served as Vice Minister of Foreign Affairs. Since April 22, 2019, he is Ambassador of Peru to the United States and Coordinator of the Lima Group.

The World Bank projected that Peru will lead in 2019 and 2020 economic growth among the Pacific Alliance countries, with an expansion of 3.8 and 3.9 percent respectively, ahead of Colombia, Chile, and Mexico. | Photo: Peru Mincetur (Flickr)

bizrepublic.com

13

trade

NET EXPORT GROWTH WILL BE SLIGHTLY REDUCED IN LATIN AMERICA AND THE CARIBBEAN FOR 2010-2021

President Donald Trump and Chinese President Xi Jinpimg. | Carlos Barria/Reuters

▶

GLOBAL TRADE SLOWS UNDER SHADOTW OF PROTECTIONISM FOR NOW, THE US QUITE FAR FROM A SUSTAINABLE TRADE SOLUTION WITH CHINA.

A

trade war between the United States and China could reduce global growth by one-GDP point by 2020 in the context of a world economy slowdown already taking place after a collapse in trade from almost 7% to 2.1% expected in 2019. This Gross Domestic Product is much lower than what was projected (3.2% this year and 3.4% in 2020). The United States government, instead of fueling trade tensions, should continue negotiations to try to reach a permanent trade agreement with China. Then, reestablish negotiations with the European Union, especially considering that the trade flow between the United States and the EU represents nearly 30% of world trade.

However, the rhetoric coming out of the Trump administration seems to be far from a sustainable trade solution in time with China or a short-term free trade agreement with the European Union, especially after the failed negotiations of the Transatlantic Trade and Investment Partnership, which stagnated after three years and is now considered obsolete. China’s trade surplus with the United States, an issue that deeply irritates Washington, rose from just over US $21 billion in April to US $26.89 billion in May, totaling US $110.547 billion

in the first five months of 2019.

Last year, the US trade deficit with China reached US $419 billion dollars, but these numbers shouldn’t unleash a tariff escalation that, in the long run, will end up harming the world economy of both advanced and emerging markets; and not just the countries that President Trump through his peculiar way of seeing global trade, is targeting.

“Trade is not a weapon, and trade wars often lead to a lose-lose situation. Winning them can simply not be done without harming both sides,” says Børge Brende, president of the World Economic Forum (WEF). And for decades trade has been the main way for countries around the world to develop peacefully, establish links and produce wealth; and it has been an enormously successful mechanism. What Donald Trump or his advisors fail to understand is that bilateral trade between countries does not have to be balanced, and that trade deficits are not bad per se and do not have to mean job losses or lower economic growth, such as The Global Future Council on International Trade and Investment of the World Economic Forum recently demonstrated.

for example, that employment in the United States saw its greatest historical growth along with imports, according to statistics from the Federal Reserve Economic Data (FRED) of the Federal Reserve of St. Louis and that GDP growth was higher when the trade balance was more negative, according to statistics from the Organization for Economic Co-operation and Development (OECD). According to the Global Attitudes Survey conducted by the Pew Research Center last year, both in advanced and emerging market economies more than 80% of citizens value trade positively; however, and this would pay in favor of Trump’s protectionist policy, less than half believe that trade is beneficial for employment, wages or prices, skepticism that is especially pronounced in advanced economies.

An empirical analysis conducted

by IMF technical staff based on a broad set of panel data on 35 countries and 13 industrial sectors, with country-specific macroeconomic variations and country and sector characteristics as controls, indicates that tariffs have economically considerable and significant repercussions at all levels of the value and real value added chains, emPresident Trump has not merited, ployment and productivity. bizrepublic.com

15

Biz | TRADE

Tariffs applied at any point in the value chain generally have a much greater influence on the product and productivity than the national protection of a particular sector. Statistically, tariffs near and far from the origin have significant negative effects on value added sectors, according to the idea that either they increase the costs of the inputs (tariff near the origin), or they reduce the international demand for the product of that sector (tariff far from the origin).

Likewise, both the productivity of the workforce and the total productivity of the factors experience a significant decrease due to the tariffs applied very near or far from the origin, because they either increase the prices of foreign inputs, or reduce the possibility of benefiting from returns at scale derived from trading in international markets.

On the other hand, it seems that tariffs aimed to increase the protection of domestic producers have no significant effects, except for slight negative consequences on employment. According to the International Monetary Fund (IMF) analysis, there are compelling arguments to reduce tariffs. A tariff reduction would not only boost trade, but also allow an adjustment of the international labor division to more fully reflect the comparative advantage which, in turn, generates benefits in terms of product, employment and productivity in the countries reducing tariffs and in others located in different points of the value chain.

Let’s go back to the figures now. The government reported in June that the international trade deficit of goods and services of the United States fell 2.1% in April to $50.791 billion dollars. In the first four months of this year the negative trade balance reached US $205.4 billion, compared to US $201.327 billion in the same period of 2018. In April, US exports reached a value of US $206.8 billion dollars, 2.2% less than the previous month, and imports reached US $257.6 billion, a decrease of 2.2%.

Data from the Department of Commerce showed the trade deficit in goods with the European Union decreased in April by US $1 billion and remained at $15.1 billion. The deficit with Canada fell by US $900 million and remained at $1.8 billion dollars, while the negative trade balance with Mexico fell from US $9.505 billion in March to US $8.167 billion dollars in April.

As for imported goods as a whole, they decreased US $5.4 billion to $208.7 billion dollars in April.

BARRIERS TO COMMERCE

16

China and Russia were the countries that imposed the most trade barriers on exports from the European Union in 2018 in a context of increased protectionism where the EU detected up to 45 new barriers in countries such as Algeria, India, and the United States, among others. According to the 2019 edition of the European Commission report on trade and investment barriers published on June 17th, China is the country with the highest number of trade barriers considered problematic by Brussels, with up to 37 restrictive measures that curb exports and investment opportunities for the European Union. With biz republic

34 barriers, Russia is the second on this list drawn up by the European Commission based on the alerts it receives from companies, which also includes India and Indonesia, both with 25 obstacles, and the United States, with 23.

While China and Russia impose obstacles to European exports, both powers, within their policy of full cooperation and complete understanding, are planning to increase bilateral trade to a new level to reach a volume that exceeds US $200 billion in the coming years; an objective that could be achieved after the recent signing in Moscow of a Chinese-Russian memorandum of understanding on trade promotion. In particular, Russia plans to increase soybean exports to China, the world’s largest importer of soybeans. Bidirectional trade between the two countries reached a record high of more than US $100 billion dollars in 2018.

THE WORLD’S LARGEST EXPORTER In China, the second largest economy in the world and the great engine of Asia, exports contracted unexpectedly in April although they grew again in May, despite the increase in US tariffs. On the other hand, in April Chinese imports had an unexpected first increase in five months, but fell in May at their fastest pace in almost three years, in

a clear sign of weak local demand that will force Beijing to launch new economic stimulus measures to stabilize markets and underpin stable growth, improve quality and change driving engines.

Recent trade data show a mixed picture of the Asian giant’s economy while investors remain alert to greater signs of economic stability in China since exports in April suffered a contraction of 2.7% and then increased 1.1% in May although some analysts expected shipments from the world’s largest exporter to fall 3.8 percent compared to the same period last year, according to the most recent customs data. Although China is not as dependent on its exports as in the past, they still constitute almost a fifth of its Gross Domestic Product.

China will promote new industries and business models to cope with US tariffs.

Between May and June, Chinese exporters decided to advance their shipments to the United States to avoid the risk of suffering new Trump tariffs. These constant shipments caused a considerable increase in export figures, which are only temporary and according to economists, should collapse in the third quarter of the year.

Although trade data from the country governed by Xi Jinping is positive in general terms, fears continue over a prolonged and costly tariff dispute for both the United States and China that could plunge the global economy into a strong recession.

In fact, commercial friction between American President Donald Trump and senior Chinese government officials has become periodic, a situation that ignites concerns about an inevitable global growth chill.

In order to face the constant tariff threats of the United States, China announced that it will optimize its export structure, encouraging exports of high-tech, high quality and greater added value products, while making its exports more competitive in quality, technological intensity, branding and marketing. The country will also promote new industries and business models in the commerce sector. It plans to inaugurate 35 pilot zones to enhance the development of cross-border e-commerce, as well deploy 14 test pilots for exports through the procurement market. bizrepublic.com

17

Biz | TRADE It should be noted that China’s trade with the European Union rose 11.7% year-on-year in the first five months of the year, while trade with the Association of Southeast Asian Nations (ASEAN) increased 9.4%. As cooperation between countries participating in the Belt and Road Initiative continues to strengthen, China’s trade with countries in the Belt and Road Initiative increased 9% year-on-year during the period, and growth was 4.9 percentage points higher than the general rate.

A very important fact that Mr. Trump never mentions in his poisonous tweets is that, at the international trade level, China is the main market for agricultural products from the United States, surpassing its closest neighbors, Canada and Mexico. In fact, soybeans accounted for more than half of the $9.2 billion that China bought from American farmers in 2018.

LEADERS IN OIL Saudi Arabia retained the title of the world’s largest crude oil exporter during 2018, according to the World Energy Statistics Outlook report from British company BP for 2019. According to the report, published on June 11th, oil exports from the kingdom increased 2.8%, reaching 7.38 million barrels per day (bbl) in 2018, compared to 7.18 million barrels per day in 2017.

Russia increased its crude oil exports only modestly, by 1.1% over the past year, reaching 5.54 million barrels per day in 2018, compared to 5.48 bbl the previous year, and it ranked second.

Iraq ranked third, after the country increased its oil exports greatly, reaching 4.03 million bbl in 2018 compared to 3.76 million barrels per day in 2017.

However, the lack of Foreign investments, political instability and lack of water could curb Iraqi oil production, according to the International Energy Agency (IEA).

CANADA AND LATIN AMERICA Meanwhile, trade in the Latin American and Caribbean region continues to expand despite the fact that in recent months exports have slowed in some of the major economies in line with the lower level of growth in world trade.

In 2020 and 2021, according to World

18

biz republic

Bank estimates, the growth of net exports will be slightly reduced in Latin America and the Caribbean, while external demand will be weakened and import demand will strengthen. A new escalation of trade restrictions between major economies could have an impact on exports and investment. A deeper deceleration than anticipated in China, the largest import destination for Brazil, Chile, Peru and Uruguay, could also represent a risk.

The Inter-American Development Bank (IDB) reported in June that the value of Latin American and Caribbean exports contracted at an estimated annual rate of 1.6% in the first quarter of 2019, the first fall after two years of uninterrupted expansion. The figure contrasts the increase in regional exports of 8.9% recorded on average in 2018. The report released by the IDB highlighted that the change in trend was marked by the slowdown as last year progressed and the scenario of a greater trade conflict, especially between the United States and China.

China’s imports from the region grew at a remarkable rate in the first quarter of 2019 and continued to be the most dynamic. Although with a clear tendency to slow down, they rose more than 18% in the first quarter of the year. On the other hand, exports from Central America suffered a strong slowdown between the end of 2018 and the beginning of 2019, and it is estimated that the year-over-year rate in the first three months of the year was 2.1%, after growing 9.4% in 2018. At the regional level, only Barbados, Costa Rica, Ecuador, Haiti, Jamaica, Mexico, Dominican Republic and Suriname saw positive rates of variation in their exports at the beginning of 2019.

In Canada, the increase in exports and the decline in imports in April helped reduce the trade deficit in goods to 966 million Canadian dollars (US $721 million), informed the Canadian Statistics Department in June, as a last sign that the economy is recovering from a slowdown. The trade deficit for April was the smallest in six months. Canadian exports grew 1.3% as shipments of metallic and non-metallic mineral products increased 15% due to higher gold sales to Britain and Hong Kong. Canada, one of the lea-

ding oil exporters, has been greatly affected in recent years by lower oil prices and higher energy production in the United States. Canada has only experienced two trade surpluses since October 2014. Canola exports fell 14.7%, as shipments to China stopped in the middle of a diplomatic dispute. Wheat exports, however, increased 21.7%. Canada sent 74.5% of all its exports of goods to the United States in April.

In Mexico, exports totaled US $39.447 billion in April, which translated into a 6.1% annual increase and the reactivation of this indicator, since in March it fell 1.2%, ending a 28-month streak of continued growth. Mexican exports have been driven mainly by demand in the United States and, in recent months, due to the US tariffs on Chinese imports. One of the most positive data this month is the 2.2% growth of exports in monthly terms, with seasonally adjusted figures. Thus, exports were replenished by the 2.0% decline (in the same indicator) that occurred in March, but also consolidate the second highest growth in the last 12 months. Regarding its two major items, oil exports totaled US $2.251 billion in April, down 14.3%; while non-oil exports amounted to US $37.196 billion, a 7.6% increase, at annual rates. Mexican imports increased 1.6% in April, reaching US $38.077 billion, while Mexico experienced a surplus of US $1.370 billion.

Brazil registered a trade surplus of US $6.422 billion dollars in May, 5.8% more than the US $6.073 billion recorded in the same month of 2018. This is the third best result for the fifth month of the year, after May 2017, when a trade surplus of US $7.661 billion was recorded; and 2016, when the surplus was US $6.430 billion dollars. With May’s results, Brazil’s trade surplus accumulated in the first five months of the year was US $22.806 billion dollars, 5.9% lower than the same period of 2018. In May, exports totaled US $21.394 billion dollars, 5.6% higher than in May 2018, according to the daily average criteria. Sales of manufactured goods grew by 29.5% in the same year-on-year comparison, and exports of semi-finished goods by 15.4 percent.

Chile registered a trade surplus of US $371 million in May, amid a setback in the value of copper shipments, its main product, according to the Central Bank of Chile. Copper exports totaled US $3.088 billion in the fifth month, representing a year-on-year fall of 2.3%. Meanwhile, exports totaled US $6.353 billion, a yearon-year decrease of 2.3%, while imports dropped 1.7% to US $5.982 billion.

Colombia’s National Statistics Department revealed that the value of Colombia’s exports rose 2.2% in April to US $3.866.7 billion, compared to the same month last year, favored by a surge in sales of oil and its derivatives. The variation surprised most analysts who projected a decline and was better than the March balance, when exports yielded 0.8% or US $3.337 billion. Sales of oil and its derivatives, the largest generator of foreign exchange in the country, rose 22.2% year-on-year in April to US $1.701 billion, while volume increased 16%. In contrast, the value of coal exports contracted 24.7% year-on-year and coffee exports fell 10.6%.

The bilateral trade between the countries does not have to be balanced, and that trade deficits are not bad per se.

In Peru, exports totaled US $14 billion between January and April 2019, which reflected a 6% drop compared to the same period of the previous year mainly due to the lower price of metals. Sales abroad of the traditional sector reached US $10 billion, 9% less than in the same period of 2018; although in volume there was a 1% (12 million ton) increase. This was explained by the price of Peruvian products that saw a decline in the international market, a trend that will continue in the following months according to analysts. The mining sector, the main driver of Peruvian exports, saw lower sales abroad totaling US $8.1 billion, reporting a substantial drop of 14% compared to the same period of 2018 when there were US $9.4 billion and 9.2 million tons in shipments.

Argentina, in the first 4 months of 2019 managed to reverse a deficit of US $3.259 billion and transform it into a surplus of US $3.147 billion. It meant a turning point after just one year of more than US $6.4 billion dollars, although a fall in international prices weakened foreign exports. So far, the surplus in terms of foreign trade generated by the exchange with the rest of the world was supported by the drastic contraction in the volume of bizrepublic.com

19

Biz | TRADE imports, 29.1% in April, which, accompanied by a decrease in product imports

by Argentina, generated a decrease in the total amount of 31.6%, to US $4.174 billion dollars. With the numbers in blue, President Mauricio Macri has affirmed that the country never had so much export momentum as it does now and he highlighted the 170 new markets opened to Argentina in recent years.

Venezuela’s oil exports suffered another setback in May after many of its customers reduced their purchases in order to comply with U.S. sanctions. Sales of crude oil and refined products fell 17% to 874,500 barrels per day, mainly due to the difficulty of selling the heavy crude that used to be destined to U.S. refineries. Venezuela sent a total of 33 orders

20

biz republic

in May, mainly to Asain markets. Exports to India fell to around 187,000 barrels per day, while those destined for China remained above 450,000 barrels.

AFRICA, READY FOR TAKE OFF In international trade there is always a life beyond the threats of Donald Trump. On May 30th, the Continental Free Trade Area of Africa (AfCFTA) came into force, which involves some 1.2 billion people and creates the largest free trade area in the world since the foundation of the World Trade Organization (WTO) in 1995. The agreement seeks to take advantage of the vertiginous growth of a young population, promote trade between the countries of the continent and rely less on fluctuations in the prices of raw materials that constitute a large proportion

of its exports. The countries have pledged to eliminate tariffs on 90% of goods, a process that can take several years.

The combined GDP of the continent is US $3.4 trillion. So far thel 54 member states of the African Union have signed the agreement except Eritrea, Benin and Nigeria; the latter the largest economy and the most populous of Africa. With the creation of a free trade zone on the continent, the problem of fragmented economies in African countries that continue to form small markets compared to the rest of the world, is expected to be resolved. AfCFTA could help attract long-term and large-scale investments in the region, generate employment, offer greater opportunities for businesses and benefit consumers to contribute to sustainable development.

patents USPTO ANNOUNCES NEW TRADEMARK RULE REQUIRING FOREIGN-DOMICILED APPLICANTS AND REGISTRANTS TO HAVE A U.S.-LICENSED ATTORNEY

A

n important regulation change regarding the registration of trademarks has been imposed.

The United States Patent and Trademark Office (USPTO) announced a new rule requiring all foreign-domiciled trademark applicants, registrants, and parties to Trademark Trial and Appeal Board proceedings to be represented by an attorney who is licensed to practice law in the United States, in effect August 3rd, 2019.

The requirement applies to all trademark applicants, registrants, and parties whose permanent legal residence or principal place of business is outside the United States. These applicants, registrants, and parties are required to have a U.S.-licensed attorney represent them at the USPTO in all trademark matters. Additionally, U.S.-licensed attorneys representing anyone before the USPTO in trademark matters are required to confirm they are an active member in good standing of their bar and to provide their bar membership information.

“Businesses rely on the U.S. trademark register to make important legal decisions about their brands. In order to maintain the accuracy and integrity of the register, for the benefit of all its users, the USPTO must have the

appropriate tools to enforce compliance by all applicants and registrants,” said Under Secretary of Commerce for Intellectual Property and Director of the USPTO Andrei Lancu. “This rule is a significant step in combatting fraudulent submissions.” …“Many other countries worldwide have had this requirement for decades,” said USPTO Commissioner for Trademarks Mary Boney Denison. “We believe that this new rule will help improve the quality of submissions to the USPTO.” The rule is intended to: • Increase USPTO customer compliance with U.S. trademark law and USPTO regulations.

• Improve the accuracy of trademark submissions to the USPTO. • Safeguard the integrity of the U.S. trademark register.

The USPTO states that they “discovered an increasing number of foreign trademark applicants, registrants, and parties who were filing inaccurate and possibly fraudulent submissions that do not comply with U.S. trademark law or the USPTO’s rules. Often, these submissions are made with the assistance of foreign individuals or entities not authorized to represent applicants at the USPTO”.

Angiolina Galluccio Biz Economist Writer The process begins with the name search in case there is no other equal, similar or sound the same or similar.

The search of a brand name is cost cero.

TEAS and TEASi forms have also new requirements and have been updated to comply with this rule. For questions about this TEAS and TEASi release, email TEAS@uspto.gov The attorney fee may be between US $ 1,500 to US $ 2,500. The approval process for the brand may take about six months. Note that before this rule, the registration could have been done directly through the USPTO website with fees from $ 225 to $375, without the need of having an attorney in the United States. This new rule is to avoid fraudulent registrations from third parties who may be using a brand name that does not belong to them. In other words, the new rule will help brand name owners to also protect their brand.

For a more thorough understanding of this new federal trademark law, please visit the rule page on the USPTO website. https://www.uspto.gov

bizrepublic.com

21

22

your country

The Americas and the Caribbean – A QUICK LOOK!

Panoramic view at sunrise in Rio de Janeiro with Christ the Redeemer, Sugar loaf, botafogo Bay and the Guanabara Bay. City of Niterói in the background. | Photo: Flavio Veloso/Getty Images

www.bizrepublic.com

3

Biz | THE AMERICAS AND THE CARIBBEAN – A QUICK LOOK! ANTIGUA AND BARBUDA.

The Ministry of Foreign Affairs, Immigration and Commerce of Antigua and Barbuda notified the Embassy of Ecuador that the Antigua government decided to eliminate its visa requirement for Ecuadorian citizens, who will now be able to enter Antigua and Barbuda (one of the thirteen countries that make up the Caribbean Sea Islands) for a period of up to 90 days. Chet Greene, Foreign Minister of Antigua and Barbuda, also announced that a visa will be granted to citizens of the Dominican Republic who carry passports with American and European visas.

BARBADOS.

According to the recently-published ‘Worldwide Broadband Speed League’ report by the British firm Cable, Barbados is the country in Latin America and the Caribbean with the fastest Internet browsing speed with 17.08 megabytes per second (Mbps) average download speed. On the American continent, according to the report, the United States registered 25.86 Mbps average download speed and occupied 20th place; while Canada clocked 19.48 Mbps and was ranked 33. Singapore leads the global browsing speed ranking with 60 Mbps.

CANADA.

Canada to become the first G7 country to join the Pacific Alliance as an associate member. The bloc was founded by Chile, Colombia, Mexico and Peru. Canada joined as an observer in September 2012 and in June 2017 received a formal invitation to start the process that would make it an associated member of the Alliance by the end of 2019. Chrystia Freeland, Minister of Foreign Affairs, and Jim Carr, Minister of International Trade Diversification, have expressed the need to enter into a trade agreement with both the Pacific Alliance and MERCOSUR.

COSTA RICA.

BELIZE.

BAHAMAS.

After the devastating passing of Dorian, the most powerful hurricane ever recorded in the northwestern Bahamas, thousands left the country by air and sea, but most Bahamians have stayed to rebuild their lives and keep the tourism industry running on the archipelago islands that were not damaged. The idea of the authorities and locals is that tourists who planned to visit their paradisiacal beaches not change their plans or stop visiting. Tourism accounts for 50% of the GDP of the Bahamas, which is US $5.7 billion, according to the Bahamas Investment Authority (BIA).

The West Indian Manatee (Trichechus manatus manatus) is in danger of extinction. There are only a few thousand left in Belize and a similar amount in Mexico. These gentle and slow marine mammals are leaving Mexico and have moved to the Caribbean, according to Belizean researcher Jamal A. Galves, in search of more pristine, healthy, and survival-friendly ecosystems, qualities that, unlike Mexico, Belize still offers.

The World Wide Fund for Nature (WWF) has warned of the dangers surrounding this sirenium that can weigh up to 1,500 kilos and measure up to 4.6 meters. and measure 4.6 meters.

Dyalá Jiménez Figueres, Costa Rica’s Minister of Foreign Trade, informed that her country’s entry into the Organization for Economic Co-operation and Development (OECD) will be evaluated by the authorities of said agency in March 2020 and, in the event of meeting all the requirements, Costa Rica would receive a communication to formalize its incorporation 2 months later. The OECD, the select club of so-called ‘rich countries’ (in which there are only two Latin American nations), is made up of 36 countries that together represent more than 70% of the world market.

COLOMBIA.

José Manuel Restrepo, Colombian Minister of Commerce, Industry and Tourism; and Flavia Santoro, President of ProColombia were in Mexico City on September 19th and 20th. There, they met to explain the advantages of investing in Colombia to 65 Mexican entrepreneurs from sectors ranging from energy, hydrocarbons, agribusiness, tourism and creative industries.

They also met with two multinational companies that do business in Mexico, which they invited to visit the Colombian market. In the first half of 2019, Mexican investment in Colombia reached US $259 million.

DOMINICA.

Dominica, a small country on a mountainous island in the Caribbean with tropical forests and natural hot springs, carries a very heavy weight. Out of all Latin America and the Caribbean, it is the nation that owes the most to the People’s Republic of China. After Dominica is Ecuador, Venezuela, Bolivia, and Jamaica. China’s role as an international financial actor continues to generate intense debate. According to a recent study by Horn, Reinhart and Trebesch, 80% of the countries on the planet owe the Chinese. Between 2005 and 2018, it is estimated that China lent almost 141 billion dollars to Latin America.

GRENADA.

Grenada, the second smallest independent country in the Western Hemisphere, located in the southeastern area of the Caribbean Sea, which until 1983 was a convulsed communist country allied with Cuba and the Soviet Union, today left behind its socialist past and shows its best face to tourism. According to American magazine Coastal Living, Grenada had one of the most elegant beach hotels in the world in 2019. This is the ‘Silversands Grenada’, a recently built hotel complex in St. George, which has 43 suites, the longest swimming pool in the Caribbean and rates starting at $800.

EL SALVADOR.

CUBA.

With 11.2 million inhabitants, the island of Cuba already has 5.5 million active cell phone lines, of which 2.5 million have access to the Internet, said the vice president of the Chamber of Commerce of Cuba, Rubén Ramos Arrieta, during a business forum held at the National Hotel of Havana. The forum lasted two days and was attended by representatives from American companies Liberty Latin America Ltd., S3, C&W Networks, Akerman LLP and Transfer To, interested in exploring the Cuban telecommunications market despite the commercial embargo on the island.

Chinese Vice Minister of Foreign Affairs, Qin Gang, and the Ambassador of the People’s Republic of China in El Salvador, Ou Jianhong, highlighted that bilateral trade has grown significantly in the first year of diplomatic relations between the two nations. Salvadoran exports to the Asian giant increased by 82%, with sugar shipments and the recent entry of Salvadoran gold coffee standing out. Once El Salvador cancels its FTA with Taiwan, China will begin negotiations for the signing of a free trade agreement with the Central American country.

GUATEMALA.

With the purpose of consolidating the insertion of Guatemala into the global market of goods and services, the Government of the Central American country has implemented the National Quality Policy for the period 2019-2032.

The measure announced by the Minister of Economy Acisclo Valladares Urruela seeks to promote investments, boost competitiveness, and especially benefit non-traditional export products, “that already compete in an external market with high quality standards,” said the Deputy Minister of Investment and Competition, José Ramón Lam.

25

GUYANA.

Guyana, one of the smallest and poorest countries in South America may have the highest per capita oil production in the world, disrupting the relationship with its neighbors Suriname, Venezuela, and Brazil. The British company Tullow Oil plc announced weeks ago the discovery of substantial and high-value oil in Guyana after drilling its Jethro-1 offshore well by the Stena Forth drilling vessel, at a total depth of 4,400 meters.

The finding includes sandstone deposits containing high quality oil from the lower tertiary era.

HONDURAS.

Negotiations are underway for the signing of a Free Trade Agreement (FTA) between Honduras and Israel, Honduran President Juan Orlando Hernández confirmed following a meeting with the Prime Minister of the Jewish State, Benjamin Netanyahu. The Honduran president said that the three-day visit to Jerusalem also served to outline some bilateral agreements for the development of state-of-the-art agriculture, technolo-gy, education and innovation. Israel is a powerful economy of 369 billion dollars, superior to that of all of Central America.

NICARAGUA (Photo - La Prensa, U. Molina)

NICARAGUA.

Managua, the capital of Nicaragua, recently hosted “Expo Taiwan 2019”, a fair that helped Nicaraguan and Taiwanese entrepreneurs improve and explore opportunities for trade and business of their products. The Taiwanese presented in Nicaragua virtual reality games, innovative irrigation systems, mobile phones, LED lighting, and the latest in transport, computer products, food, industrial and household appliances. Taiwan finances 27 projects in Nicaragua in various areas worth between 30 and 50 million dollars, according to the Nicaraguan government.

HAITI.

Guy Metayer, Ph.D, in charge of Commerce at the Haitian Embassy in the Argentine Republic, visited northeastern Argentina in September to thank the hospitality of the South American country to Haitian migrants and to strengthen cultural and business ties.

The Caribbean diplomat visited officials from the Argentine provinces of Chaco, Corrientes, Formosa and Misiones to discuss the possibility of creating a chamber of commerce made up of businessmen from those Argentine provinces and their Haitian peers, in order to boost the bilateral export of products.

JAMAICA.

Jamaican Minister of Culture Olivia Grange demanded the British Government return two sculptures, 500-year-old Taino figures representing Boinayel, the God of rain, and another of the bird man, found in a cave in 1792, that are in the hands of the British Museum in London. Although they are not on display and were pillaged when Jamaica was a British colony (from 1707 to 1962), these indigenous treasures, “have no economic value,” said the minister, adding, “they are a significant part of the history of Jamaica.”

PANAMA.

The Government of Panama has created the Pro Panama program, an agency attached to the Ministry of Foreign Affairs whose purpose is to attract investments and promote exports. Pro Panama will work directly with embassies and consulates, turning them into tools to promote Panamanian exports to international markets. Currently, Panama exports only 10 of 139 products it can ship to the United States, within the framework of the United States — Panama Trade Promotion Agreement (TPA) in effect since 2012.

PUERTO RICO.

Ajit Pai, president of the Federal Communications Commission (FCC), proposed the allocation of US $950 million to strengthen, improve and expand broadband networks in Puerto Rico and the US Virgin Islands, following the devastation of hurricanes Irma and María in 2017.

This financing would serve to “deploy the networks of tomorrow; including gigabit and 5G fiber in Puerto Rico and the Virgin Islands. It will also ensure that Americans who live there can participate in ecommerce and stay connected when they need it most,” said Ajit Pai.

PARAGUAY.

The Omega Green complex will be built in Paraguay with an investment of US $800 million and be the first renewable biofuel production plant in the Southern Hemisphere and the most advanced in the world. This was made known by businessman Erasmo Carlos Battistella, president of the Brazilian multinational company ECB Group, after meeting with Paraguayan President Mario Abdo Benítez.

The industrial plant, to be installed in the city of Villeta, will generate 5,400 jobs and produce renewable diesel (HVO) and kerosene (SPK) for civil and military aviation, with a production of up to 20,000 barrels per day.

DOMINICAN REPUBLIC.

The digitalization of financial services is gaining ground every day globally.

However, countries like the Dominican Republic are moving forward in this process at a slower pace. Less than 40% of consumer payments in Dominican stores are made through electronic means, which shows a very high use of cash.

Gabriel Pascual, director of Mastercard in the Dominican Republic, said that paying in cash is more complicated, expensive and insecure, both personally and for businesses.

SAINT KITTS AND NEVIS.

The National Assembly of the small Caribbean nation of Saint Kitts and Nevis passed a new law that decriminalizes the use of small amounts of marijuana for medicinal and religious purposes. The measure, which the Government described as historic, replaces some criminal penalties with fines and community service. In turn, it allows the use of the drug in places of worship for the Rastafarian community, a socio-cultural and religious movement of Jamaican origin. The new law does not allow the sale of cannabis and restricts its use around minors.

SAINT VINCENT AND THE GRENADINES.

This southern Caribbean country hosted the Caribbean Conference on Sustainable Tourism Development, an event organized by the Caribbean Tourism Organization (CTO) in association with the St. Vincent and the Grenadines Tourism Authority (SVGTA) and was aimed at addressing the urgent need for a transformative and disruptive tourism product to face the challenges of the industry. Saint Vincent and the Grenadines is heading towards being a greener destination with the construction of a geothermal plant to complement the country’s hydroelectric and solar power capacity.

bizrepublic.com

27 27

Biz | THE AMERICAS AND THE CARIBBEAN – A QUICK LOOK! REPUBLIC OF TRINIDAD AND TOBAGO.

VENEZUELA (Photo - George Steinmetz, Fortune)

SAINT LUCIA.

In an emotional ceremony, the Government of Saint Lucia, an island country in the Caribbean with just over 180,000 inhabitants, welcomed the outstanding performance of its athletes in the Lima 2019 Pan American Games: Levern Spencer, gold medal in high jump and Albert Reynolds, bronze medal in javelin throwing. Prime Minister Allen Chastanet accompanied by the Minister of Sports, Edmund Estaphane, and the president of the Olympic Committee of Saint Lucia, Fortuna Belrose, suggested naming “Medal Drive” to one of the country’s roads in tribute to both athletes.

Robert Le Hunte, Senator and Minister of Public Services of Trinidad and Tobago, revealed in the framework of the 35th CANTO Annual Conference and Trade Exhibition, held in the city of Port of Spain, that Telecommunications Services of Trinidad & Tobago (TSTT) has partnered with Huawei to implement 5G technologies before the end of 2019. 5G technology is the next step to ensure that Trinidad and Tobago is well equipped to survive and thrive in the ever-changing digital economy, achieving greater foreign direct investment,” said Le Hunte.

SURINAME.

Suriname is a country in South America considered one of the greenest in the world (93% of its territory is jungle rich in flora and fauna) and today is much closer to the rest of America thanks to Copa Airlines, one of the best airlines in the world according to the American magazine Money, of Time Inc.. Copa Airlines started operations with its new route to Paramaribo, the capital of Suriname, that is now interconnected with 80 other destinations and 32 countries in the Americas through the Hub of the Americas, operations center located at Tocumen International Airport in Panama

VENEZUELA.

Despite the crisis in Venezuela, there are still US companies that continue to operate there. One of them is Chevron, the third largest publicly-traded oil company in the world and the only major US oil company that continues to work in Venezuela (ExxonMobil and ConocoPhillips left in 2007). Chevron’s oil production in Venezuela was around 34,000 barrels per day in the second quarter of 2019, which represents only 1% of Chevron’s global production, making its Venezuela operations unprofitable.

28

biz republic

latino vote bgillgroup.com. | Foto: Alixon Collazos

bgillgroup.com. | Foto: Alixon Collazos

Our Vote Matters!

By Alixon Collazos

S

eptember 15th marks the beginning of Hispanic Heritage Month, it is the time where we, latinx, proudly showcase our cultural, economic and social diversity; it is a time to take stock of how far we have come as a community, but also a time to reflect on how much further we need to go. It is a time to proudly wave our individual nation’s flags and sing our national anthems all while celebrating the country that has allowed our dreams, hard work and tenacity to prosper. It is a time of celebration, flag raisings, cultural programs, good food and parades. Yes, indeed we have parades; and no one knows the significance of our parades more than public and elected officials.

Public and elected officials understand the value of our vote, much better that we understand it ourselves, and they capitalized on that. There is nothing wrong with that, in fact I am thrilled to see elected officials marching along parade routes, waving to the great number of latinx standing along the streets excited to be seen by their representatives.

Representatives that we, with our votes have put in place. Our Vote Matters! It matters so much that in 2018, a year with the highest voter

participation in close to 100 years, latino voter turnout reached 11.7 million also a high record for a midterm election. This is not a coincidence. 2018 was also the year in which all major racial and ethnic groups saw a historic jump in voter turnout: Hispanic and Asians each saw a 13 percentage point increase from 2014, while whites increased by 11.7% and African American increased by 10.8% Furthermore, analysis by the Pew Research Center found that the number of Latino voters nearly doubled from 2014 to 2018, “Latino voter turnout reached 11.7 million in 2018 up from 6.8 million in 2014 – the single largest increase on record from one midterm election to another”. Latinos are on track to continue to be the largest minority of voters in the next 2020 election with approximately 29 million eligible latino voters up from 25 million in 2016.

VotoLatino, a national non-profit organization founded 15 years ago with the goal of increasing latinx voter participation, clearly understands that voter registration alone is not enough to affect election results. Instead, constant communication with the eligible voters, education, and presence of issues and

candidates is what really generates movement in elections and 2020 is just around the corner.

New jersey is a small but mighty state of a little over 9 million people with an approximate latino population of 1.8 million and 918,000 of them are ELIGIBILE VOTERS. In New Jersey, 14.8% of the eligible voter population is Latino, ranking 8th in the country. New Jersey also ranks 7th, among all states, in eligible Latino voters. The other states, not surprisingly are California, Florida, Illinois, New Mexico, Arizona, Texas. So, what does this mean for New Jersey? It means political entities of all kinds need to pay attending to latinx voters and the latinx needs. It means, communicating with us often and respectfully, it means investing on latinx voter registration programs, it means educating communities on election cycles, which in New Jersey is a year-round occurrence. It also means communicating with the entire latinx community, not only the eligible voters but with their entire family. Mix status families living together are common and the well-being of the family depends of all of its individual members. bizrepublic.com

29

2

biz republic

|

International Magazine, September 2019

growth Peru: A Booming Economy Fueled by its Exports

BY CONRADO FALCO,

DIRECTOR OF TRADE COMMISSION OF PERU IN NEW YORK.

I

n 2018, Peru’s economic activity grew 4% and is expected to continue growing on average at the same pace for the coming years. In comparison, Latin America’s growth is forecast at 1.3% in 2019 and 2.4% in 2020.

As a result, the Peruvian economy grew from a GDP of US$ 54.3 billion 20 years ago to more than US$ 225 billion in 2018. An increase of 4 times in the last two decades. Favorable international commodity prices, the negotiation and signing of numerous free trade agreements and a business environment that promotes private investment, have greatly contributed to this growth, as have the country’s prudent long time monetary and fiscal policies. Responsible macroeconomic policies can be seen in the low and stable inflation rate, which was just 2.2% in 2018.

In the mining sector alone, export revenues increased from US$ 2.7 billion to about US$ 29 billion over the last 20 years.

In addition, a successful export diversification policy has also contributed to the increase in Peru’s non-traditional exports, especially in the agricultural, fishing, manufacturing and textile sectors. Non-traditional exports reached US$ 13.2 billion in 2018, a notable increase from the US$ 2 billion in 1998.

The overall exports from Peru totaled US$ 49.1 billion in 2018, compared with imports which reached US$ 41.9 billion, generating again an important trade surplus.

food, quinoa, peppers, artichoke, citrus, to name only a few, totaling US$ 9 billion last year in this category of food.

Additionally, Peru is a dynamic tourism and investment destination, havig been named the Best Culinary Destination from the prestigious World Travel Awards for seven consecutive years.

Tourists visiting Peru reached 4.4 million in 2018, a rise of 10% from 2017.

Peru is the third largest country in South America, after Brazil and Argentina, and has a population of over 32 million people, 78% of whom are living in urban areas with 10 million living in the capital city of Lima alone. Nominal GDP per capita in Peru has tripled in the last 20 years. This positive performance is instrumental in Peru’s fight against poverty. Since 1998, poverty rates dropped from 42.4% of the population to the current 21.7%.

For more information email us at Info@iPERU.NYC.

With the US, Peru has a commercial deficit, meaning that the products that it exports to the US are less than what Peru buys. Though the US is the key market for many non-traditional Peruvian products, some hitting a percentage as high as 60%.

EXPORTS OF FOOD FROM PERU TO THE WORLD have been booming, particularly in the northern winter, with grapes reaching US$ 812 million, avocado US$ 724 million, blueberries US$ 548 million, asparagus US$ 481 million and mangoes over US$ 300 million, in 2018. This group of products has grown 70% in the last 4 years. Other SuperFoods Peru include specialty coffee, fine cacaos, seabizrepublic.com

31

interview

JUNE 20, 2019, NALEO 36TH ANNUAL CONFERENCE AT THE INTERCONTINENTAL IN MIAMI, FLORIDA. L-R, LIZ BERMAN, PRESIDENT, CEO, CONTINENTAL FOOD AND BEVERAGE / INCA KOLA USA; BEGOÑE CAZALIS, PUBLIC AFFAIRS AND COMMUNITY MANAGER, COCA-COLA BEVERAGES FLORIDA; PETER VILLEGAS, VICE PRESIDENT AND HEAD OF LATIN AFFAIRS, COCACOLA NORTH AMERICA; ARTURO VARGAS, CEO, NALEO; HOPE M. FIELD, SENIOR MANAGER OF LATIN AFFAIRS, COCA-COLA NORTH AMERICA, AND TRAVIS A. WARREN, SENIOR MANAGER, PUBLIC AFFAIRS & COMMUNITY RELATIONS.

32 2

biz biz republic republic

|

International Magazine, September 2019

IN CELEBRATION OF HISPANIC HERITAGE MONTH

▶

HOPE M. FIELD,

Senior Manager of Office of Latin Affairs, Coca-Cola North America (CCNA)

By Heidi Castrillon

A

lthough Coca-Cola launched its first exclusive campaign in 2004 for the Latin market in the United States and strengthened its image of Hispanicness in 2015 with its successful #OrgullosoDeSerLatino campaign, video that went viral and which is still remembered today by many, the link between this leading brand and the Latino community in the United States goes well beyond dates and advertising strategies: it is rather an authentic relationship, which flows naturally and comes from family; brand loyalty that has consolidated over time.

It’s obvious Latinos brought to the United States not only their millenary

culture and traditions, but also a taste for Coca-Cola. This is apparent to Hope M. Field, Senior Manager of the Latin Affairs Office of The Coca-Cola Company, who as an American of Colombian descent and in full celebration of Hispanic Heritage Month, tells us what the link is between this powerful brand of mass consumption and Latino immigrants who, according to US Census Bureau estimates, make up approximately 18% of the total US population; almost 59.9 million Latinos. A community as vibrant as its gastronomy and very diverse like the new flavors of cherry, vanilla, cranberry and raspberry from Coca-cola.

PLEASE SHARE WITH US IN DETAIL WHAT YOUR WORK IS AT THE OFFICE OF LATIN AFFAIRS OF THE COCACOLA COMPANY? As the Senior Manager for the Office of Latin Affairs, Coca-Cola North America (CCNA), I manage the company’s efforts to strengthen relationships across the East Coast and Puerto Rico, focusing on the U.S. Hispanic community, the largest minority and fastest growing segment of the U.S. population. In my role, I establish and develop the execution of local, regional, and national stra-

▶

2018 United States Hispanic Chamber of Commerce Annual Convention in Philadelphia. L-R Argentina A. Ramirez, Immediate Past Chair, Morris County HispanicAmerican Chamber of Commerce (MCHACC), Victor Nivelo, Community & Government Relations Director, MCHACC, Rosemary Carrillo, Community Outreach, Aetna, Liz Berman, President, Continental Food and Beverage, Inc, Hope M. Field, Senior Manager of Latin Affairs, Ramiro Cavazos, President and Chief Executive Officer, USHCC, Esperanza Porras-Field, Founder & President Emeritus, MCHACC, Victor Gallardo, Workforce Initiatives Director, MCHACC and Fernando Valencia, Events & Activities Director, MCHACC.

bizrepublic.com

33

ESPERANZA PORRAS-FIELD, MOTHER; HAROLD FIELD III, BROTHER; HOPE M. FIELD; CHRISTINA V. FIELD, SISTER; HAROLD FIELD JR., FATHER; HARRISON FIELD, NEPHEW; AND MELISSA FIELD, SISTER-IN-LAW

de and advise CCNA and local bottlers to connect with the ever changing and diverse Hispanic consumer and community. Its purpose is to help guide the company in building strong connections with the Hispanic American community, including conIn order for the company to consistent- sumers, shoppers, customers, suppliers, ly meet expectations, I provide strategic opinion leaders, and the workforce. direction, feedback, and access to the Hispanic community and its leaders while assessing the “pulse” of the Hispanic community to address constituent issues. I also work with local bottlers to collaborate on mutually beneficial initiatives to serve the Hispanic segment. tegies that position the company as the leading corporate citizen. My responsibilities include managing relationships with key local, state, and national Hispanic organizations and leaders.

One of my focus areas is to develop, execute, and manage effective Hispanic community relations programs that create goodwill and enhance brand awareness. Also, the implementation of strategies that leverage sponsorships and philanthropic activities to strengthen Coca-Cola’s presence in the Latino community to help drive profitable long-term volume.

“We put people at the heart of our business and everything we do”

You were born in the United States, but speak Spanish fluently.

How did you learn this language and how much has it helped you to interact with the Latino community in the US? My Mother, Esperanza Porras-Field, was born in Bogota, Colombia. Her native language is Spanish. She came to the United States to study at Saint Peters University in New Jersey where she met my father, Harold Field Jr. He was born in Bayonne, NJ of Italian and Irish descent. He spoke English and a little broken Spanish that he learned in school, from travel, and my mother.

From a young age, I was taught Spanish and was immersed in Colombian culture.

My Mother spoke Spanish to me from the day I was born. My sister, Christina, and I spent many summers with our Abuelita in Bogota, Colombia, where our family and friends only spoke to us in Spanish. I spoke English at school, with my father, my fami-

Currently, I serve as the Chairwoman for the Morris-County Hispanic-American Chamber of Commerce, where I successfully build and advance local, national, and international partnerships with business owners, professionals, organizations, corporations, and other chambers. I’m also proud to serve on the United States Hispanic Chamber of Commerce’s Senior Executive Corporate Advisory Board.

In addition, I collaborate in the coordination to support the Coca-Cola Hispanic Advisory Council (HAC) which is managed by the Office of Latin Affairs. The HAC consists of internal and external leadership from across the country that help gui-

34

biz republic

1-YEAR-OLD HOPE M. FIELD WITH HER MOTHER, ESPERANZA PORRAS-FIELD, FOUNDER & PRESIDENT EMERITUS, MCHACC AND ABUELITA, DOCTOR ELENA VILLAMIL Y PORRAS

ly in the US, and with the community. Therefore, I grew up speaking both languages and learning both cultures simultaneously.

Learning the Colombian cultural heritage and Spanish language gave me the opportunity to communicate with my relatives and strengthen family ties beyond the borders. I also learned the history and traditions of my family’s country of origin. Understanding where my family came from resulted in developing these values in my life and as part of my own identity.

I grew up in Morristown, New Jersey in the suburbs of New York City. It is a diverse area and has a large Latino population from various countries, including Colombia, Cuba, Mexico, Ecuador, El Salvador, Guatemala, Puerto Rico, and Dominican Republic. We were able to relate to each other’s cultures because we spoke the same language, enjoyed similar traditions, food and music, and had the same family values. It gave me the opportunity to learn about other Spanish speaking countries and to become a part of the “American Hispanic culture;” a culture that consists of individuals, like myself, who live in the United States but value both cultures.

My upbringing has everything to do with my passion for working with the American Hispanic community. I enjoy the advantages of being bilingual and bicultural. These benefits have enriched my skills, creativity, and my life. I don’t just interact with the Latino community; I am a part of the Latino community.

Coca-Cola launched from its headquarters in Atlanta, within the framework of Hispanic Heritage Month, its first exclusive campaign for the Latin market in September 2004, exactly 15 years ago, with the idea of associating the brand with Hispanic concepts that are fun, family and friendship. Since then, how far has the Coca-Cola brand relationship come with Spanish-speaking people in the United States?

Even though the first Hispanic Heritage Month celebration exclusive campaign for the Latin market may have started 15 years ago, Coca-Cola has a long history engaging Latinos in the United States. The company’s Latin community roots trace back to former Chairman and CEO Roberto Goizueta. Under his leadership, the market value of Coca-Cola stock rose from $4 billion in 1981 to $145 billion in 1997. He once said, “Our marketing calendar is built around the Fourth of July and the sixteenth of September,” which makes perfect

HOPE M. FIELD, SENIOR MANAGER OF LATIN AFFAIRS, COCA-COLA NORTH AMERICA AND CHAIRWOMAN, MORRIS COUNTY HISPANIC-AMERICAN CHAMBER OF COMMERCE (MCHACC) SPEAKING AT THE MCHACC ANNUAL AWARDS GALA AT THE BIRCHWOOD MANOR, WHIPPANY, NJ.

sense since the latter date marks Mexican Independence Day. National Hispanic Heritage Month is the period in the United States when people recognize the numerous contributions that generations of Hispanic and Latino Americans have made to the country. At Coca-Cola we include the concept well.

Our program focuses on the power of family, culture, and community while bringing people together in celebration of their heritage and unique family stories.

We are happy to be part of these moments and take pride in helping Latinos celebrate their heritage. As you stated, it is fun, family, and friendship oriented.

For the Office of Latin Affairs we join in the celebration of the group’s heritage and unique culture through partnerships and activities that will build and deepen the company’s multicultural connections.

“In addition to celebrating Hispanic Heritage Month, we celebrate and support the community all year”

Additionally, it is a time to reflect on the challenges the Hispanic community has faced and the fantastic opportunities that lie ahead.

In addition to celebrating Hispanic Heritage Month, we celebrate and support the community all year. The company values the Latino community. Therefore, the Office of Latin Affairs manages efforts to strengthen relationships across the country. We are proud to support numerous organizations throughout the United States that represent various segments of the Hispanic community.

The Coca-Cola brand relationship with those who speak Spanish in the United States continues to advance throughout the years.

We are recognized as one of the most influential companies supporting Hispanics and we appreciate our long history of supporting the Hispanic community.

What are the differences and similarities that you, through your work at the Office of Latin Affairs of The Coca-Cola Company, have found between Latinos and other American populations regarding their consumption habits, considering that they are consumers with different socio-demographic profiles?

Coca-Cola offers more than 800 different beverages. As consumers’ tastes are changing, Coca-Cola is evolving as well. Our business strategy is centered around becoming a consumer-centric total beverage company, and part of that focus includes www.bizrepublic.com

35

This Signature Event “Enhancing Board Effectiveness” is a Nonprofit Board of Directors Orientation & Executive Leadership Program that will consist of an orientation training for all the Chamber Board members across the country and their President & CEO/Executive Director. It is a full day training in the following areas: by-laws, Robert’s rules of order, strategic planning, governance, securing funding, event planning, and attracting the community and enthusiastic volunteers. Chamber members will have the opportunity to exchange best practices and network with each other, key stakeholders, and Coca-Cola executives.

HOPE M. FIELD ACCEPTING THE HUMANITARIAN EXCELLENCE AWARD AT THE LONG ISLAND HISPANIC CHAMBER OF COMMERCE (LIHCC) “GATSBY-ESQUE” 30TH ANNUAL GALA AWARDS

continuing to enhance our beverage portfolio with a wide assortment of drinks that consumers want.

For the Hispanic American community, there are quite a few popular choices like Coca-Cola from Mexico, which is sweetened with sugar cane. The company started importing this in 2006. In addition, we acquired Topo Chico last year. Hispanic American taste preferences also have influenced how we innovate new beverages. For example, last year we introduced two new Coca-Cola specialty beverages, Coca-Cola California Raspberry and Coca-Cola Georgia Peach, which are both sweetened with sugar cane like Coca-Cola from Mexico.

In addition, two years ago we introduced a new line of Barrillitos Aguas Frescas in foodservice outlets. This was the brand’s first launch since joining the Coca-Cola portfolio in 2008, which was seventy years after the brand first launched in 1938 in Monterrey.

36

As a Latina, there is great pride in representing Coca-Cola in Latin Affairs exclusively. This first year has been an unforgettable experience. I work for a company that understands that engaging with the Hispanic community is a top priority. Coming from the entrepreneur and non-profit side, I have brought innovative ideas to the table that have resulted in the company standing out. My achievements include bringing new partnerships to the company. The most rewarding part of my job is that I’m directly impacting and improving lives. The Office of Latin Affairs supports organizations that directly help families and individuals. It is mutually beneficial because it helps to strengthen our presence in the Hispanic community and drive profitable long-term volume.

I also created a monthly Latin Affairs newsletter that showcases the work of our department with organizations that represent the Hispanic the community nationwide. It has been a pleasure to represent the Company with an important segment and my position is a perfect match to my skill sets and personality.

Coca-Cola is the world’s most popular consumer brand and the most popular by Latinos for the seventh consecutive year, ahead of other major brands such as Colgate and Bimbo, according to the most recent Kantar Worldpanel Brand Footprint ranking. What does this mean?

We put people at the heart of our business and everything we do. Coca-Cola is deeply dedicated to engaging the community. We are constantly learning and adapting to the fast-changing world. It starts with truly listening and understanding our consumers.

How is the penetration and acceptance of Coca-Cola ‘light’ products, sugar-free drinks or for athletes Another achievement is the creation and in the Latin market in the United development of a Coca-Cola signature States?

We recognize that the success of our business is directly linked to diversity. The multicultural community represents a significant area of growth. The company is committed to diversity by retaining the talent needed in key divisions. At Coca-Cola, our multicultural communications and Latin Affairs teams help our marketing team to understand the stages of acculturation to best connect in the marketplace.

event during the United States Hispanic American Chamber of Commerce convenWe have 250 reduced and no sugar bevetion that will take on September 28, 2019. rages. Many of these are soda options with no sugar at all. The following are some of our sugar-free soft drinks, teas and waters: Coke Zero Sugar, Diet Coke, DASANI, DASANI Flavors, DASANI Sparkling, Fanta Zero, Fresca, Gold Peak Unsweetened Tea, Minute Maid Light, Pibb Zero, POWERADE Zero, Seagram’s Diet Ginger Ale, Seagram’s Seltzer Water, Smartwater, Sprite Zero, TaB, and vitaminwater zero.

What do you think you have learned or achievements have you had this first year as Senior Manager of the Office of Latin Affairs of Coca-Cola?

Many athletes and active individuals use our sports drinks as a source of carbohydrate fuel and as a way to replace fluids and electrolytes lost through sweat during sustained physical activity. The company

biz republic

“The most rewarding part of my job is that I’m directly impacting and improving lives”

is a major sponsor of NASCAR, the PGA Tour, NCAA Championships, the Olympic Games, the NRL, the FIFA World Cups and the UEFA Euro.

Apart from your work at The Coca-Cola Company, you are also chairwoman of the Morris County Hispanic-American Chamber of Commerce [MCHACC], demonstrating yet again that women can assume leadership roles with the same or greater efficiency than men. How have you managed to complement both responsibilities?

Hope’s Mother Esperanza with chamber and community leaders in 1990 L-R Robert Menendez, Senator; Harry Ayala, President, New Brunswick Chamber of Commerce; John A. Lynch Jr. President, Senator; Representative, Ecuadorian Chamber of Commerce; Carlos Peraza, President, Camden Hispanic Chamber of Commerce; Guilermo Mandonado, Secretary, Statewide Hispanic Chamber of Commerce; John Sanchez, Vice President, Statewide Hispanic Chamber of Commerce; Daniel Jara, Chairman, Statewide Hispanic Chamber of Commerce; Robert Del Tufo, Attorney General, New Jersey; Esperanza Porras-Field, President, Morris County HispanicAmerican Chamber of Commerce; Representative, Peruvian Hispanic Chamber of Commerce; Jonny Torres, Executive Director, Save Latin America, Inc.; Wilfredo Caraballo; Assemblyman, New Jersey; Miguel “Mike” Rodriquez, President, Essex County Hispanic American Chamber of Commerce; and Representative, Union City Hispanic Chamber of Commerce

I am a “chamber baby,” i.e., I grew up in the Chamber of Commerce. My mother, an entrepreneur, founded the Morris County Hispanic-American Chamber of Commerce in New Jersey 30 years ago. She inspired and for the past four years Chairwoman. me to get involved with the community Accordingly, the position has come very and to deliver the Chamber’s mission in naturally to me. It requires organizational helping businesses grow. skills and discipline. It is a balance. Since my chamber career has always run parallel The Chamber has been a part of my life for to my education and then my work career, as long as I can remember. Meetings, activiI was accustomed to making the time. ties, and events were our normal way of life.

Chamber leaders and business owners are Leading the Chamber is a perfect commy second families. Their children are my plement for my position at Coca-Cola. first friends. The relationships that I have The Mission of the Morris County Hispawith civic and political leaders have been nic-American Chamber mission is to advobuilt over a lifetime. I sat in on meetings cate, promote and advance the interests of at young age listening to matters regarding business owners, professionals, organizabusinesses, corporations, partnerships, and tions and corporations within Morris Counpolitics before we even understood what ty and the adjacent areas that target and those words meant. I watched my mother serve the U.S. Hispanic-American market. lead boards of all men, where she was the My job with Coca-Cola is to strengthen the only female. I was raised with the mentality relationships with the Hispanic market on that anything is possible. the East Coast. Leading the organization gives me the opportunity to leverage partAnything that had to get done in front of nerships and to foster relationships for or behind the scenes, I was part of and both the organization and for Coca-Cola. helped. One day, I told my mother, “I quit being president of the chamber.” She In addition to leading the MCHACC, I am laughed and responded that I wasn’t the the President of the Fairleigh Dickinson President and I told her I was because University Young Alumni Association, everything that she did, I did.

where I graduated with a Master’s degree in Organizational Behavior and a Bachelor’s degree in Psychology and Business.

Community involvement is one of my biggest passions in life. Therefore, I make the time, effort, and commitment.

Do you think that the Latino market in the United States will continue to grow steadily as before or, on the contrary, due to endogenous and exogenous factors such as the trade war and global economic slowdown, could there be a slowdown in the next few months?

The Hispanic community is the largest and fastest growing minority in the United States. It is also a high-growth demographic in terms of cultural influence and buying power, driving much of the growth we see today. In fact, recent research revealed that the U.S. Hispanic consumer is the third-fastest growing economy in the world. I believe that it will continue to grow. .

Over the years, as our family grew, I watched the chamber grow. We went from a start-up local chamber to the leading edge of local, national, and international business communities. My mother represented region five as a Board of Director on the United States Hispanic Chamber of Commerce and founded Chambers throughout the US, as well as Toronto, Canada. I traveled with her to meetings and events all over the world.

Without being aware, I was training for the position my entire life. I started on the Board as Director of the Young Business & Professionals, then Vice Chairwoman, L-R HOPE M. FIELD AS A YOUNG GIRL WITH HER MOTHER, ESPERANZA PORRAS-FIELD, FOUNDER & PRESIDENT EMERITUS, MCHACC AND SISTER, CHRISTINA V. FIELD, SENIOR FASHION DESIGNER, PINK CHICKEN NEW YORK AT THE DESFILE HISPANO AMERICANO DE NEW JERSEY

Infrastructure STATE OF CANADIAN AND UNITED STATES CONSTRUCTION ▶

U.S. CONSTRUCTION COMPANIES FACE ROADBLOCKS AND OPERATIONAL CHALLENGES EVERY DAY

https://gocontractor.com/blog/us-construction-industry/ Author: Jenny Snook

T

he U.S. construction industry is among the world’s largest, with annual expenditures of over (US)$1,231 billion. With this annual spending driving the U.S. economy, U.S. construction companies, for example, spend more than (US)$10 trillion in goods and services, employing over 10 million workers.

Construction projects are taking place all over the country, making the industry’s outlook a positive one.

This doesn’t mean it’s all clear sailing from here. It isn’t. U.S. construction companies face roadblocks and operational challenges every day, like improving safety and a labor shortage. To stay competitive in 2019, these problems must be beaten, during a period where the industry only has the ability to grow modestly.

A rise in interest rates and the U.S. economy may also slow down construction’s future growth.

THE TOP CHALLENGES FACING THE INDUSTRY INCLUDE:

• Technology development/integration

• Increasing material costs

• Skilled labor shortage

• Green construction techniques

• Stagnant level of productivity on construction projects

• Improving safety practices/meeting standard compliance.

Construction companies that beat these challenges will grow and prosper in 2019. Anyone who doesn’t will have to struggle to remain competitive. Below we take a closer look at the problems facing the U.S. construction industry. Reading this year in review report can help you plan the year ahead more effectively.

casters expect the cost of new construction put in place to reach more than (US)$1 billion by 2021. Meanwhile, a strong demand in the engineering and construction sectors fell, thanks to the collapse of oil prices.

Inflation-adjusted data from the U.S. Bureau of Economics shows that the impact of construction has grown by 21% since 2011, while the industry’s contribution to the U.S. economy reached over $650 billion for the first time since 2008.

Climbing interest rates and higher material prices, however, slowed down expansion during 2018 and may do the same in 2019. However, the industry is still predicted to make a small profit next year, assuming the industry’s supporting forces don’t weaken and limit the number of construction projects.

OVERVIEW OF THE US CONSTRUCTION INDUSTRY 2018 The U.S. construction industry continued to expand during the first half of 2018 but still more slowly than 2017. A strong economy and positive market fundamentals for commercial real estate did help to fuel this modest expansion. This was along with an increase in federal and state funding for public works, and institutional buildings.

Briefly, construction saw a big increase in private and public housing—a key driver of this year’s expansion. Private construction costs continued to grow, reaching (US)$899 billion in 2016. Fore-

KEY U.S. CONSTRUCTION PROJECTS IN 2018 INCLUDED:

• Vista Tower (Chicago) • SalesForce Tower (San Francisco) • 6 AM Development (Los Angeles) • One Vanderbilt (New York) • Winthrop Square Garage (Boston) • Comcast Technology Center (Philadelphia)

bizrepublic.com

39

CHALLENGES THE FACING US CONSTRUCTION INDUSTRY Next year, the decrease in growth will increase competition between companies to complete a smaller number of construction projects during 2019. Key challenges will also make things difficult for construction companies, including:

• TECHNOLOGY DEVELOPMENTS AND INTEGRATION

Technology advancements in construction, such as an improvement in contractor management software, project management software, building Information modeling, drones, and aerial photography, are all encouraging the industry to grow. The issue for companies is integrating this technology into operations. In an industry notoriously slow at adopting technology, this is a challenge.

• INCREASING MATERIAL COSTS

The cost of building materials continues to increase worldwide.

Some analysts estimate that costs may have risen by as much as 9% over the last year. Materials driving this rise in costs include steel, iron, steel mill products, and softwood lumber. Expect materials costs to continue rising into 2019, due to a decrease in supply and an increase in demand.

• SKILLED LABOR SHORTAGE

More than 250 million open construction jobs exist in the U.S. Construction and news indicates this number won’t fall anytime soon. In fact, it might continue to grow. Labor shortages can slow down the speed of on-site projects, or even stop them dead. Labor shortages also make it harder to encourage new and skilled people to start, while the retirement of an increasing number of baby boomers isn’t helping.

• USING GREEN CONSTRUCTION TECHNIQUES

Into 2019, environmental sustainability will continue to be a hot topic discussed in the US construction industry. Green construction includes techniques like designing buildings so that natural light reaches the middle of buildings, reducing electrical costs, preserving the environment, and using resources efficiently.

Companies will need to find ways to reduce building’s carbon footprint, which is easier said than done.

• STAGNANT PRODUCTIVITY LEVELS

According to a recent report by McKinsey & Co., the level of construction productivity has remained frozen for the past 80 years.

However, some measurements, have shown a steady decline in productivity since the 1960s. Factors that reduce the level of productivity include poor planning and scheduling, lack of collaboration, communication between stakeholders, idle time, labor shortages, and workplace accidents.

During 2019, construction companies may find it difficult to address these five challenges. However, growing competition and shrinking profit margins makes it imperative that they at least try.

IMPROVING CONTRACTOR SAFETY PRACTICES IS ALSO A CHALLENGE It’s no secret. The US construction industry accounts for a numerous number of worksite accidents each year. In fact, every day, an average of two construction workers die due to work-related injuries in the United States. One in five of all workplace fatalities occurring are construction-related.

Therefore, it is not surprising that the US construction industry faces a high level of scrutiny when it comes to safety issues. This makes the improvement of safety practices a critical challenge for all construction companies. An increasing number of construction companies are making safety their top priority to try and beat these problems.

40

biz republic

Fortunately, construction has more resources to fight the safety battle than ever before. Between technology advancements, safety apps (like GoContractor’s Access control), and improved safety equipment (e.g. work boots that connect to Wi-Fi), companies now have the tools to reduce worksite accidents, lower the risks involved, and cut compensation costs.

BOOSTING SAFETY PRACTICES WITH CONTRACTOR MANAGEMENT One safety tool that companies often overlook is contractor management software. Construction projects often employ independent contractors to reduce the costs involved and meet the required deadlines.

Contractor management software, like GoContractor’s, helps managers to create a structured contractor management program, streamlining the whole management process, reducing paperwork, boosting productivity, and reducing the number of onsite accidents, among other things.

This software also helps to make on-site locations a safer place to work, remaining more compliant with rules and regulations. It can even prevent workers lacking the right training or certificates from accessing worksites. This can dramatically reduce the number of accidents at a worksite.

THE BOTTOM LINE Into 2019, the US construction industry will continue to expand.

Similar to 2018, the rate is estimated at 3%. With the supporting factors less certain in 2019, the need to overcome critical challenges facing the industry, is even more critical to address.

Improving safety will also remain a vital challenge for construction companies into 2019, especially when it comes to contractor management. With a SaaS software solution like GoContractor’s, it is possible to create a structured contractor management program that makes sense and provides a solid return on investment.

As a cost-effective, customizable solution, GoContractor helps you to beat the safety challenge, which can reduce a company’s profitability level, while increasing its’ level of ability in a highly competitive industry. More importantly, this SaaS solution can help you survive and thrive into 2019 and beyond.

Jenny Snook Jenny Snook is content executive at GoContractor with the job of researching the latest health and safety trends in the construction and heavy industry.

www.bizrepublic.com

3

BIZ | INFRASTRUCTURE

HAPPENING IN THE USA

Tight labor in the construction market

BY ISAAC COHEN*

T

he best indicator of strength in today’s US economy is the unemployment rate, which at 3.7 percent in August is the lowest in almost fifty years. Together with an average rate of inflation below the central bank target of 2 percent and an average annual growth rate of around 2 percent, all these indicators reveal that, after 10 years, the US economic expansion has become the longest on record.

Tightness in the labor market means that, in certain sectors, companies are starting to have difficulties hiring workers. For example, some companies are demanding less requirements and are looking for workers outside the usual sources. As declared by an executive from a pencil company, quoted in The New York Times (09/07/19), “We don’t have any educational requirements—no degrees or anything.

We’re just looking for someone who is hard-working.”

Also, companies are improving training programs, which allows hiring more workers with limited or without experience.

In a labor market where the number of workers for hire is decreasing, in theory, salaries would have to increase, in order for employers to retain their workers and attract new entrants into the workforce.

However, salaries have not increased enough, at a rate of around 3 percent a year, as revealed by the low rate of less than 2 percent inflation. Therefore, no relationship is in sight yet between low unemployment and higher wages, which should push inflation upward.

42

biz republic

©-ADOBESTOCK_144428534.JPG

Meanwhile, there is evidence that the US economy is slowing down. For instance, average monthly job creation in 2018 was 223,000, while during the first six months of this year the same average decreased to 172,000. This indicates that job creation is cooling down, to which may be contributing the vanishing of the stimulus provided by the tax reduction approved in 2017.

There are also other indications of a slowdown. The number of jobs created in August was only 130,000 and this figure includes 20,000 persons hired temporarily by the government to work in the census.

Also, certain sectors are suffering the consequences of the imposition of tariffs against Chinese imports.

The manufacturing index, from the Institute for Supply Management in August decreased to 49.2 percent, from 51.2 in July and 59.5 in September 2018, indicating a contraction as the figure fell below 50 per cent. From January to August this year, 55,000 new jobs were created in manufacturing, down from 162,000 created in the same months of last year.

By contrast, those non-manufacturing sectors that are less dependent of international trade have created more jobs and continue hiring vigorously. This is the case of the services sector, including healthcare (+24,000), professional and business services (+37,000), financial activities (+15,000). In other services there was almost no change in hiring during

August. This was the case in sectors such as construction, leisure and hospitality, where there is a high concentration of Hispanic small companies. For instance, 27 percent of all Hispanic companies operate in the building trades and construction sector. Peruvian American entrepreneur Gustavo Reyes, President and CEO of Century Builders Management, from Nassau County, New York, says “the supply of Hispanic workers in construction has almost disappeared. Today, the bigger companies hire them, offering better salaries. Nobody works in construction for the minimum wage of $15 an hour. To hire a worker in construction in the State of New York you have to offer more than $31 an hour.”

To conclude on a positive note, for certain minorities the unemployment rate remains above the national average, but it has been approaching that average. For instance, unemployment for African Americans decreased 0.8 percent from last year, to reach 5.5 percent in August, the lowest on record. The same is the case for unemployment among Hispanic Americans, at 4.2 percent, down by 0.3 percent in August, also a record low.

In August as well, unemployment of White Americans was 3.2 percent and of Asian Americans was 2.8 percent, both under the national average.

©SHUTTERSTOCK_531246328

*International analyst and consultant, former director of ECLAC Washington. Commentator on economic and financial issues for CNN en Español tv and radio, Univision, Telemundo and other media bizrepublic.com

43

NORTH NEW JERSEY NAHREP CHAPTER

LOOKING AT THE REAL ESTATE MARKET WITH OPTIMISM-2021 T

he National Association of Hispanic Real Estate Professionals (NAHREP), a non-profit business and multicultural organization that promotes and defends homeownership for the Hispanic community in the United States, with more than 30,000 members, including real estate agents and teams across 48 States and with more than 70 affiliated chapters, is fully prepared to successfully face 2020-2021 and contribute with its talent, effort and experience to maintain the growth curve in the American housing industry.

It will undoubtedly be a time of great challenges for the real estate market, especially considering 38% of economists recently surveyed by the National Association for Business Economics (NABE), whose board of directors is made up of economists from Morgan Stanley, KPMG, Oxford Economics, Intel, Amazon, McKinsey, Wells Fargo and the Federal Reserve Bank of Atlanta, among others, predict that by 2020 the US economy could be in recession. On the other hand, 34% of economists surveyed affirm that the recession would start in 2021.

BUYING REAL ESTATE IS A GOOD LONG TERM INVESTMENT TO PRODUCE WEALTH.

BY HEIDI CASTRILLON

44

biz republic

At the North New Jersey NAHREP Chapter under the leadership of its President, Puerto Rican Lionel Cruz, there is certainty that slowdowns are a regular part of the country’s economic cycles.

“Live under your means and get ready for the next recession,” says the third principle of The NAHREP 10, The Hispanic Wealth Project; but there is also the belief that thanks to the strong entrepreneurial spirit that runs in the DNA of Latinos, any obstacle can become an opportunity for growth and development.

The purchasing power and financial empowerment of Latinos are driving the US economy forward and there are

no studies or projections indicating any drastic changes capable of reversing that marked trend. In fact, the appetite of Hispanics buying houses or apartments in the United States stood out in 2019 and is expected to continue smoothly into 2020, with or without a recession; because it is a young ethnic group (with an average age of 28.7 years), facing low unemployment and an increase in average income.

As for Hispanics living elsewhere in the United States, the Hispanic community residing in Bergen, Passaic, Hudson, Morris, Sussex, Essex, Warren, and the surrounding areas, counties that make up the North New Jersey NAHREP Chapter’s area of influence, consider that buying real estate is a good long-term investment to create wealth; even more so that interest rates on mortgage loans remain historically low.

The North New Jersey NAHREP Chapter is organizing just in time for celebrations for Hispanic Heritage Month, the event “The Family Mixer” (on October 10th from 6:00 p.m. to 9:00 p.m. at Ventanas Restaurant & Lounge located at 200 Park Avenue in Fort Lee, NJ 07024). You can visit nahrepnorthnewjersey.org

To join NAHREP Northern New Jersey contact us at: ofc: 201-448-9868 northnewjersey@NAHREP.ORG nahrepnorthnewjersey.org.

▶

RENNERT LANGUAGE PROGRAMS OPEN A WORLD OF POSSIBILITIES Next Stop: Latin America

Rennert graduate teachers are ready to explore the world.

Caroline McKinnon, Teacher and Director of Courses for TESOL. Berkeley Educational Services of New York, Inc. (BES), father of Berkeley College, a family-owned institution with campuses in New York and New Jersey, acquired the renowned Rennert International NYC language school in October 2018. The language school was founded in 1973 by Panamanian César Rennert and is located in the center of Manhattan. Both institutions, Berkeley College and Rennert, have maintained a strategic relationship for almost three decades through Berkeley’s international study and certificate programs, so this acquisition only consolidates its longevity, reputation for quality, and focus on student success. Below are some testimonials from students belonging to this World-Class International Learning Hub.

P

ablo Villaroel Martinez is from Lima, he always considered it a big and busy city… until he came to New York. He loves the crowds and the lights of New York City and is glad that he chose to study English here.

Pablo took summer 2019 to immerse himself in English and culture at Rennert International English Plus program for Teens, where he joined students from 26 other countries and built friendships for life.

Rennert International New York is a premiere destination for English language education for people of myriad backgrounds, from teenagers, college students and worldclass travelers, to corporate business leaders and entrepreneurs.

During his time in New York, Pablo visited many of the famous attractions and locations he had seen in films. He loved them all, but if he had to choose one thing, then it was Times Square at night. Pablo studied English Plus Acting, learning from a professional acting coach and soaking up language through all the classes and activities offered. He loved the atmosphere near Broadway. Pablo is determined to keep his New York dream alive back in Peru.

He has not decided whether it’s the Big Screen or performing on Broadway that is his ultimate dream.

Renata Sanchez de Oliveira runs a

46

biz republic

clothing business. She has clients all over the world and limited time to study. She has noticed that most of her new business is coming from the United States, so she joined Professional Classes and took English group and private lessons with specially-trained teachers. She focused on enhancing her negotiation skills with a business language approach.

thodologies needed to gain certification and teach with confidence.

Renata is now back in Ecuador and feeling more confident in her business dealings. She told us that she has been able to expand her business language skills. She misses the everyday language support and wine and cheese mixers but while she can’t be in New York, she is determined to stay connected with the international business community she met at Rennert.

When César Rennert started Rennert International New York in 1973, he had no idea that he would have affected the lives of so many international students. When asked today what his goal was back then, he will respond, “ To get people out there and get them communicating.

You can’t learn language with a just a teacher and a book. You have to experience language doing what you love…Be brave and communicate! Language - it’s fun!”

Michelle Somers had outgrown Ohio. She wanted to travel the world, but needed to find a way to do this while earning a living. Through an online search, Michelle found her way to a Teacher Training program in New York City and signed up for a one-month TESOL Certificate (Teaching English to Speakers of Other Languages). She learned that English teachers were in demand around the world. TESOL was the perfect springboard for Michelle to pursue her two passions: people and culture. She jumped in, learning all the current techniques and me-

Latin America was her goal and high on her list was Chile. Certificate accompli, Michelle secured her first teaching post in Santiago de Chile. She recently wrote to her teacher that she had found her place in the world and is living her dream.

Rennert, a native of Panama was educated and grew up in the United States and taught language at New York University. Since beginning Rennert in 1973 with one teacher and one classroom, he has expanded the school and has educated and connected over 80,000 students and business people around the world using the signature R.E.A.L. method ( Rennert Experiential Approach to Language).

millennials

AIMING TO OCCUPY THE HIGHEST POSITIONS AS A LEADER IN RESEARCH www.bizrepublic.com bizrepublic.com

47 3

A FUTURE SCIENTIST: ANDREA MORA, THE AMERICAN DREAM COME TRUE.

▶ A PERUVIAN MILLENNIAL GRADUATED IN THE UNITED STATES

I

n a world where 72% of scientific positions are held by men, Andrea Mora, a talented, young Latina is breaking barriers aiming to occupy the highest positions as a leader in research projects and get involved in making important, high-ranking decisions in the science world.

This 21-year-old girl of Peruvian origin finished college with a ‘magna cum laude’ mention and earned her B.S. in Chemistry.

Then, following the advice of her mentor, Dr. Tsanangurayi Tongesayi, Associate Professor of Chemistry at the Science Department of Monmouth University, she decided to continue her education at Tufts University near Boston (Massachusetts). Currently, Andrea Mora is studying her Doctorate in Chemistry that broadens her professional horizons and allows her not only to be the pride of her family but also to become a reference for the Latino community in the Uni-

48

biz republic

ted States in the future.

Andrea Carolina had a natural talent for chemistry since high school. In fact, it was Anna Jacob, her professor of chemistry at Alexander Hamilton Preparatory Academy public school, in the city of Elizabeth, Union County (New Jersey), who urged her to follow the dream of being a scientist. “Personally, she changed my perspective of the world,” said the Peruvian millennial. “As a first-generation college student, at a time when I felt lost about pursuing higher education, Mrs. Jacob guided me through my possibilities and saw the potential in me that I lacked to see in myself. She always complimented my abilities in her course and told me I had a natural talent for chemistry. ”

Mora conducted research at Monmouth University on the role that heavy metals such as lead, chromium and zinc have on microplastics and how they affect aquatic

environments. “The overall goal is to look at the effect that they have on public health, because if these toxic metals are sticking onto microplastics… they could scale up through our food chain… or through drinking water systems,” said this young scientist, who In addition, remembers with special appreciation her one-year internship at the multinational company Colgate-Palmolive; an experience that she described as “tremendously rewarding” for her professional growth and which allowed her to acquire new skills.

Millennials To Make Up 75% Of Global Workforce Useful information for business owners and companies to learn to ‘deal’ with Generation Y.

▶M

illennials, or people born between 1981 and 1999, will make up 35% of the workforce next year and it’s estimated that by 2025 they will make up 75% of the workforce worldwide, according to consultants such as Deloitte, Randstad and others with global presence.

Therefore, it is important to have an in depth understanding of these digital-savvy, free and purposeful-by-nature people that demand not only good pay from companies, but also positive corporate cultures such as diversity and inclusion (it’s no small fact that 43% of American millennials are non-caucasion); they also require flexibility.

Millennials lead in the use of mobile devices and the Internet, tools that have allowed them to be classified as excellent collaborators, prosumers, making them versatile and innovative. They have grown up believing that they can change the world and can’t support working more than two years at the same job unless companies adapt to their multiple demands, which doesn’t always happen. Thanks to their energy, creativity and passion to deal with problems inherited from previous generations, young millennials develop powerful adaptation and transformation skills.

Below, we present a series of data and characteristics that can be useful for entrepreneurs and companies interested in learning to ‘deal’ with millennials, not only as employees, but also as potential suppliers, consumers and customers. Because if the young adults of

Generation Y will make up no less than three quarters of the world’s working population in about five years, it would be better to be prepared to leave behind ‘old school’ habits and do a reengineering of your business to appeal to them as workers and consumers as these citizens are taking control of things in full development of industry 4.0.

DIGITAL PAYMENTS In 2025, millennials will be the generation with the highest earnings in history, which will change the banking industry. This is one of the conclusions of an article published in Nasdaq by the digital payment platform Due.com, which predicts that the growing influence of the generation of those born in the 80s will revolutionize the economic sector, giving the first steps towards a society without cash. In the United States, 8 out of 10 millennials make all their purchases and pay their bills from their cell phones.

One of the main reasons is security.

TELEWORKING According to a report prepared by Citrix, a multinational entity that provides digital workspaces with more than 100 million users worldwide, it is well known that Generation Y (millennials) have best adapted (74%) to telecommuting or remote work, which allows them to work from a place other than an office. Behind them is Generation X (born between 1965-1979) with 22%, and Baby Boomers (born between 1946 and 1964) with 4%.

Millennials are more productive working from where they feel most inspired.

NEXTGEN WORK Models of alternative and non-traditional jobs are what millennials are looking for, according to the study “Gig Responsibly: the Rise of NextGen Work”, prepared by ManpowerGroup.

According to the analysis, 95% of Generation Y respondents prefer these types of jobs because it allows them to balance their personal lives, income and professional growth. NextGen Work is a global phenomenon and is positive from the perspective of a worker and the employer. These jobs allow millennials to earn more money and learn new skills.

CRYPTOCURRENCY A research survey by YouGov Omnibus revealed that 48% of US millennials are interested in converting their economy mainly to cryptocurrencies, and set aside the dollar. Bitcoin, the largest cryptocurrency that currently accounts for more than half of the total market, is also the most popular among the young adults of Generation Y. According to the study, 44% of millennials believe that cryptocurrencies will see widespread adoption and will be accepted as a means for legal purchases in the next decade.

SHARING ECONOMY Jilian Mincer wrote in Reuters that millennials put less emphasis on owning and more on sharing, trading and exchanging to obtain assets or services. These behaviors, typical of the sharing economy, have boosted businesses such as Zipcar car rental service, Uber taxi service and the Airbnb home rental bizrepublic.com

49

...ARE COMPANIES READY? site. For Rachel Botsman, author of “Who can you trust?”, Generation Y “is moving from a culture of ‘me’ to a culture of ‘we’.”

For millennials, buying items doesn’t have the same value it had for their parents and grandparents.

DIGIMANUFACTURING

A high percentage of millennials don’t want to work in factories or pursue a trade, although manufacturers in the United States struggle to hire them and replace baby boomers, the aging workforce. In the next decade there will be 3.4 million vacancies in manufacturing jobs and many of them will be ‘digimanufacturing’, which is advanced manufacturing, highly automated and determined by data.

Presenting this opportunity to millennials is still a work in progress. As long as the factories can’t make their jobs look great, they won’t attract millennials.

INSURANCE According to a survey of more than 8,000 consumers worldwide, conducted by MuleSoft Inc., of Salesforce. com, 62% of millennials would be willing to allow insurance companies to access their Facebook, applications and smart device data in exchange for a reduction in their premiums. Insurers invest millions to improve their digital offerings amid stiff competition from emerging financial-technology companies. 56% of respondents said they would change their insurance provider if the digital service were not good.

SALARY Millennials want to earn good salaries, but are reluctant to negotiate. A

50

biz republic

survey conducted by consultant agency Robert Half International showed that 61% of young people accepted the salary offered by a company, whatever the amount, without negotiating further.

While only 39% asked for more money after having received a job offer. According to Payscale, the salary search and comparison tool, only 37% of millennials asked for a raise from their employer because they didn’t want to be perceived as ambitious and feel uncomfortable with the negotiation process.

MILLENNIAL

MANAGERS

According to a survey of 4,000 private sector employees done by the consulting firm specialized in executive recruiting, PageGroup, 45% said they were in favor of being led or having a millennial boss.

Contrary to widespread belief, millennials, far from being resisted, gain more and more sympathizers among employees of all generations to fill positions that involve management. However, according to the Deloitte Millennial Survey (2018), only 6% of millennials have managerial positions.

ASIAN MILLENNIALS Almost 60% of the world’s millennials live in Asia. China has 400 million millennials, 5 times that of the United States and totaling more than the entire American population. Morgan Stanley estimates that India’s 410 million millennials will spend US $330 billion in 2020. On the last Alibaba Singles Day, the online consumption holiday in China, millennials spent US $25 billion. Unlike previous generations, known for their savings and forecasting skills, Chinese

millennials have taken pleasure in spending money.

MILLENNIAL RETIREMENT The World Economic Forum has predicted that by 2050, when millennials from the eight major pension markets begin to withdraw, the retirement savings gap will be US $427 billion. That is almost six times the 2015 figure, which was US $67 billion. Among the causes contributing to this huge gap are greater life expectancy, the slowdown in long-term growth, and very low savings rates. Do millennials believe that saving for retirement is boring? There are surveys that indicate that they do.

BEST AND WORST Using 36 metrics divided into five key dimensions (affordability, education and health, quality of life, economic health and civic engagement), personal finance site WalletHub determined that Massachusetts is the best US State for millennials in 2019, followed by District of Columbia (Washington DC) and the States of Washington, Minnesota, Wisconsin, Colorado, Iowa, Utah, Pennsylvania and California. While West Virginia was considered the worst State for millennials, followed by New Mexico, Mississippi, Oklahoma, Louisiana, Arkansas, Nevada, Kentucky, South Carolina and Alabama

Business â–ś

Cannabis has been cultivated for more than 4,000 years

FDA Approves first Marijuana-based Drug. | Flapas/Shutterstock

bizrepublic.com

51

GLOBAL BUSINESS OF THE ‘GREEN GOLD’ TO MOVE MORE THAN US $166 BILLION BY 2025 ▶

MARIJUANA MARKET GOES FAR BEYOND SIMPLY SMOKING WEED

A

ccording to the United Nations, drug use causes more deaths than ever and the black market is at record highs. However, nobody wants to miss out on the green gold rush.

Marijuana, the most widely used illegal drug on the planet and the one that has grown the most in recent decades, is now becoming a lucrative business, especially in developed countries such as the United States and Canada where its recreational or medicinal use has been approved. We can’t fail to mention its growing therapeutic use in European Union countries such as Italy, Portugal, and Germany, as well as its future expansion in parts of South America.

The cannabis industry already has around 75 million legal consumers worldwide, while regular consumers are estimated to be around 188 million according to the 2019 UN World Drug Report presented on June 25th in Vienna, Austria.

The level of business that legal cannabis, an herbaceous species that has been cultivated for more than 4,000 years and grows across the planet, is estimated to move around US $166 billion worldwide by 2025 and around US $200 billion by 2033. These numbers are without a doubt shocking

52

biz republic

if we consider that this business only reached US $12 billion in 2018, a succulent cake for the big corporations in distribution, food, beverages, tobacco, drugs, software, biotechnology and fertilizers, from Coca-Cola, Philip Morris to Pernod Ricard that all observe anxiously. .

The marijuana market is something like betting on the winning horse since it is a highly profitable business that goes far beyond simply smoking weed or using concentrates or ointments to relieve pain instead of opioids. The next challenge of this flourishing business is the massive introduction of edible products and cannabis-based beverages. Diageo (United Kingdom), the world’s leading company in the premium alcoholic beverage segment, as well as the

multinational company Pernod Ricard (France) and the world’s largest brewer Anheuser-Busch InBev (Belgium), among other major brands, are analyzing how they can capitalize on the relaxation of restrictions on cannabis-based products, with interest in creating beverages that allow them to capture new consumers.

While the industry has been experimenting with marijuana-inspired alcoholic beverages for some years now, the multinational companies that have chosen to risk their brand’s reputation by brewing beers or spirits infused with cannabis are scarce. It is little known that cannabis and beer have a close natural relationship, since both marijuana and the hop plant whose flower is an essential ingredient in brewing to provide bitterness, aroma and flavor, belong to the Cannabaceae family of plants.

“The strength of a brand remains important for beverage giants such as Coca-Cola and Pepsi, and associating cannabis with a global brand could destroy the value of that brand if a negative social stigma were associated with the main brands,” says a report by US risk-rating agency Standard & Poor’s, which predicted the grow-

Legalizing marijuana is a positive measure simply because the ban has been worse. th of legal marijuana in different sectors through an expansion that in the coming years will be higher than other important consumer sectors such as packaged food, soft drinks, tobacco and alcohol.

Dutch company Heineken International, through its American beer brand Lagunitas and in collaboration with the cannabis extract manufacturer CannaCraft, launched a product called Hi-Fi Hops last year in California. It’s a zero-calorie carbonated beverage that uses cannabis as its main ingredient. Simply put, the alcohol in the beer has been replaced by the psychoactive ingredient in marijuana. Hi-Fi Hops comes in two presentations: one that contains 10 mg of tetrahydrocannabinol (THC) per can and another that contains 5 mg of THC and 5 mg of cannabidiol (CBD). With this beer, which for now is only sold in official cannabis stores selling at a high price of $8 per can, Heineken expects to reach sales of up to US $75 billion by 2030.

Cannabiniers, a company based in San Diego, California also decided to step forward and embark on the adventure of producing Two Roots, its own beer infused with hemp and cannabis, combining traditional fermentation techniques and achieving effects similar to any other beer but activating the marijuana within ten minutes of drinking, which according to its manufacturer lasts an hour and a half.

Other emerging breweries such as US-based, Colorado-based Ceria Beverages are trying to consolidate a strong brand by manufacturing a THC-infused, non-alcoholic beer that promises to leave its consumers in a “mildly altered” state of consciousness. The factory has

partnered with Canadian company Growpacker to infuse, package, and distribute its beer with cannabis throughout southern California.

Another drink infused with a careful mixture of THC and CBD is Saka, a wine made from grapes from Napa Valley and fermented in stainless steel by company House of Saka, founded by Cynthia Salarizadeh in California. This alcohol-free product allows consumers to feel the effects of marijuana in a period of 10 to 15 minutes, unlike other cannabis-based edibles that can take much longer to activate, which complicates dosing and safety according to Saka Wines CEO Tracey Mason. Due to the strict regulations that govern California, Saka Wines is marketed as “pink/ sparkling” or “bubbles” instead of wine and is available in more than 600 stores throughout California and Nevada. In addition, Salarizadeh plans to expand her brand nationally and globally.

The cannabis market in Canada operates within a sophisticated corporate environment.

But in this business it is better to go slowly. In Canada, for example, marijuana products that can attract children (such as candies and popsicles) are banned, and canna-

bis food sales are expected to begin in mid-December. As reported by the government agency, Health Canada, food or beverages infused with cannabis will not be allowed to contain more than 10 milligrams of THC, the main psychoactive compound in cannabis. Producers and distributors will not be able to advertise healthy or dietary properties of the substance, or combine or even associate marijuana products with alcoholic beverages, so cannabis beer, which some companies are developing in the United States and other countries, will not be allowed in Canada.

On the other hand, major global cosmetic brands have moved ahead of competitors by launching skin products made with hemp seed onto the market while waiting for certain legal gaps surrounding cannabidiol (CBD), a non-psychoactive molecule of cannabis, to be resolved. They use this substance that has virtues that are relaxing, antioxidant, and which are anti-inflammatory, although not fully demonstrated. Only a few companies like French company Ho Karan and Dutch company Fyllde have decided to take on the legal battle by daring to include cannabidiol as an ingredient in some of their beauty products.

On the other hand, there is a growing number of people, nicknamed cannasexuals, a term coined

by Ashley Manta, a sex therapist from California, who use marijuana products such as creams, sprays, candles, oils or flowers, not always psychoactive, applying them to the genitals to enhance sexual experiences. Although this practice is more linked to women, according to an investigation by the Internatiobizrepublic.com

53

nal Society for Sexual Medicine (ISSM), the use of cannabis can have a negative impact on male sexual performance and even double the chances of suffering from erectile dysfunction.

It is known that marijuana components include tetrahydrocannabinol (THC), which affects the mind and mood, and cannabidiol (CBD), whose possible use for medical treatments is being investigated by scientists.

Humble Flower Co. - Healing Massage Oil. | WeedPornDaily/Flickr

“Modern perspectives on cannabis vary tremendously cross-culturally, but it is clear that the plant has a long history of human use, medicinally, ritually and recreationally over countless millennia,” said Robert Spengler, archaeobotanist at the Max Planck Institute for the Science of Human History in Jena, Germany. In fact, according to a new study published June 12th in Science Advances magazine, researchers have identified cannabis strains burned in burial rituals dating back to 500 BC deep in the Pamir mountain range in western China.

Likewise, it is known that the use of two parts of the cannabis plant, the fibers used to make hemp rope, navigation tarps and clothing, and oilseeds for food, dates back almost four thousand years. According to Mark Merlin, professor of Botany at the University of Hawaii in Manoa and a cannabis historian, cannabis seeds attached to ceramic fragments dating to approximately ten thousand years have been found in Japan.

The cannabis industry already has around 75 million legal consumers worldwide.

Cannabis oil is thought to help a number of ailments. | Corbis/Getty

CANNABIS IN THE UNITED STATES A change in society’s perception of cannabis has been so disruptive that in 31 States of the United States its use has already been legalized for medicinal purposes, although its approaches may differ significantly; and 11 States (Alaska, Colorado, Nevada, Oregon, Washington, Vermont, Maine, Massachusetts, Michigan, Illinois and California) have legalized its recreational use among adults over 21 years of age. Today, cannabis has also become a source of employment for some 160,000 people in the United States and 75% of the marijuana consumed in North America comes from legal plantations located in the State of California.

However, marijuana remains completely illegal in the States of Texas, Kansas, Idaho, Wyoming, Iowa, South Dakota, Wisconsin, Indiana, Kentucky, Virginia, Tennessee, Alabama, Georgia and South Carolina. And if we talk about prohibitions, the decision of Google stands out, which as part of tightening its content policy has banned in its app store those that facilitate the sale of marijuana. The Mountain View company has added a clause in its content policy where it specifies that Google Play does not

54

biz republic

allow “applications that facilitate the sale of marijuana or marijuana products, regardless of their legality”.

Despite the promise by Democratic Governor Andrew Cuomo to legalize marijuana for recreational use in his first 100 days of his new term, the State of New York had to stop the project due to lack of support among Democratic ranks and the issue will be discussed again in 2020, an election year where cannabis legalization could be an even more difficult challenge. Tax discrepancies, concerns about its effects on health or road safety or measures for the protection of minors were issues that New York lawmakers didn’t reach an agreement on to pass legislation, despite the fact that both houses are dominated by Governor Cuomo’s Democratic Party.

However, in June this year, the State Senate passed a bill that eliminates criminal penalties for owning up to two ounces or fewer than 56 grams of marijuana.

Instead, public possession or use of that amount of marijuana will be sanctioned in New York with fines of US $50 for an ounce or less, or US $200 for between one and two ounces.

Meanwhile, the District of Columbia (Washington DC) is in a legal limbo after a local law passed in 2014 legalizing the possession and planting of small amounts of marijuana, but not for its sale or its taxation, since the federal government, which the District of Columbia depends on, never approved the budget to carry out the project. Therefore, a black market has emerged over the last five years in Washington DC taking advantage of this legal vacuum by selling items such as t-shirts, bracelets, and even stickers and gifting small amount of drugs to the customer.

“Let’s be clear that marijuana is not yet legal in DC. There is still a lot of work to do,” said Washington DC Mayor Muriel Bowser, who presented a bill last May to regulate recreational use of marijuana in the capital.

But as legal cannabis advances in the United States, so does the black market. In spite of all the regulations and controls, in some residential areas of San Diego County, to name just one example, a very profitable and highly demanded black markett has been formed consisting of clandestine laboratories dedicated to the production of oil and honey from cannabis, which is illegal in the State of Califor-

nia and whose value is four times higher than that of methamphetamines. One gram of this synthetic drug costs US $20 in San Diego, while one gram of honey or marijuana oil reaches US $80. Between 2018 and the first half of 2019 authorities have dismantled a total of 48 clandestine laboratories; many of them, far from using craft machinery, had advanced industrial equipment with an estimated value between half a million to two million dollars.

The marijuana for medicinal purposes would help to fight the opioid epidemics in the U.S. MARKETS WITH GREAT POTENTIAL Uruguay passed the world’s first law in December 2013 that legalized and left the production, distribution and controlled sale of marijuana in the hands of the government. Although, it wasn’t until 2017 that retail sales of the product became widespread. An unsuccessful statist model where only two companies authorized by the State grow cannabis that is sold in a few pharmacies, but that have not managed to produce the expected amount

of up to two tons of marijuana per year, causing demand to greatly exceed the offer. The consumption of cannabis in Uruguay amounts, according to academic studies, to 35 tons per year. As the global legalization of cannabis develops, the importance of the Uruguayan market will diminish, although it could be an influential exporter of leaves and extracts for international markets.

Canada, an icon of progressivism and modernity, has been the first industrialized country of the G-7, G-8 and G-20 to fully legalize the production, distribution and sale of recreational marijuana in October 2018, in order to comply with a campaign promise by Prime Minister Justin Trudeau, who also rounded off his task by pardoning those convicted of possessing marijuana. Five million of the 37 million inhabitants of Canada (almost 15% of the population) consume marijuana, a business that currently moves about $8.952 billion Canadian dollars (about 6.820 billion US dollars) and, unlike the Uruguayan model, is much more liberal and is more focused on the collection of taxes.

Canada also has one of the highest GDP in the world.

The cannabis market in Canada operates within a sophisticated corporate environment, with local companies now leading not only nationally but also internationally, as is the case of Canadian company Canopy Growth Corp., the largest cannabis company in the world (with investments in Chile and Colombia), whose main shareholders, with a 38% stake, following a recent injection of US $3.8 billion, is US Constellation Brands, based in Victor (New York), an international leader in the production and marketing of alcoholic beverages. It should be noted that the province of Ontario, where Ottawa, the capital of Canada, is located is the largest marijuana market in the country and allows 19-year-olds to consume it.

However, one of the unresolved problems for the Government of Canada is that the black marijuana market continues to expand in parallel with the legal market, due to low supply, low variety and high prices of weed in official stores (where it costs 57% more than on the street); in addition to the endless lines of people, a situation that forces many people to continue buying from illegal distributors, which guarantee them lower prices and faster transaction. In the last three months of 2018, the illegal sale of cannabis accounted for some US $900 million in Canada, 79% bizrepublic.com

55

The legalization of marijuana for recreational purposes will be discussed again in New York in 2020 Sheet of a hemp on a background of 100 dollar bills close up. | MaYcaL/Shutterstock

of total sales in the country. Currently, 40% of Canadian consumers continue to turn to the black market. Bill Blair, an official appointed by Prime Minister Justin Trudeau to oversee legalization, acknowledges that the legal industry still has problems in the supply chain and that it will take a long time to get rid of street traffickers and end the black market.

In Italy, recreational use of marijuana is widely known but remains illegal. The powerful Interior Minister and Italian Deputy Prime Minister, Matteo Salvini, one of the greatest enemies not only of migration but also of light cannabis businesses in the country (stores known as coffee shops, which are popular especially in Rome), has stated that he does not want a “trafficker state” and that he prefers to legalize prostitution over marijuana; while the current medical cannabis system is in process of expansion because its production does not keep pace with the growing demand. According to official figures from health authorities, marijuana crops in Italy have increased from 400 hectares in 2013 to 4,000 in 2018.

In central stores in the city of Rome, a gram and a half of light marijuana costs between $28.8 and $32.3, while a light cannabis-based beer sells for about $2.8.

The pioneer cannabis company in Italy is EasyJoint, which supplies more than 400 retail merchants who sell it not only in coffee shops but also on the internet, pharmacies and tobacco shops; taking advan-

56

biz republic

tage of the gaps in a law approved by the Italian government in January 2017 to regulate and promote the cultivation of hemp and the treatment of its products for the creation of fibers and preparations for food or energy use.

Specialists foresee a complete regulation of recreational marijuana use in Italy taking place in the next two or three years due to its large adult population, high consumption of alcohol and tobacco, and since the market is currently saturated with all kinds of illegal and legal products that do not exceed a concentration of 0.5% tetrahydrocannabinol (THC), the substance that gives the psychoactive effect, forcing the government to accelerate its regulation. Aware of this, several international corporations linked to cannabis have entered Italy awaiting further liberalization of recreational consumption in the medium term.

Just as legal cannabis advances in the United States, so does the black market.

According to the report “The Cannabis Index: Where Will Legalization Move Next?”, prepared by the market research company Euromonitor International, the 15 markets with the greatest potential for the legal cannabis business are, in order of importance: Canada, United States , Italy, Uruguay, Germany, Chile, Australia, Mexico, Spain, Netherlands, Czech Republic, United Kingdom, France, Argentina and Portugal.

HIGH CONSUMPTION AMONG LATINOS AND AFRICAN-AMERICANS While the legal and illegal marijuana business in the United States is growing, a study by the University of Nebraska Omaha, based on data collected by the federal government between 1991 and 2017 among some 200,000 young people and published in the monthly American Journal of Public Health has warned that teenagers in the country consume ten times more marijuana than three decades ago, especially Latino and African-American minors.

Among African-Americans, the figures went from 2% in 1991 to 13.5% in 2017, and among Hispanics from under 1% to almost 9%. Among young white Americans, marijuana use grew from 0.3% to 3.7%. The study, by Dr. Hongying Dai, from the University of Nebraska Omaha’s College of Public Health, indicates that the exponential increase in the numbers

The cannabis plant contains THC and CBD (Cannabidiol). | SWNS - South West News Service

of cannabis users in the United States is due to the fact that there is a new social attitude towards marijuana since state laws on their consumption are now more relaxed. As recalled, in November 2012, Colorado was the first state in the United States to legalize and regulate the sale of recreational marijuana to people over 21, with almost two out of every three voters backing the Amendment 64.

CANNABIS IS NOT HARMFUL Since 1961, marijuana carries on its back, or rather on its leaves, a label from the UN Single Convention on Narcotic Drugs (an organism that is something like the drug prohibition bible) that places it at the same danger level as heroin. In fact, a study conducted over 20 years by scientist Wayne Hall, a researcher at the University of Queensland (Australia), professor at King’s College London (United Kingdom) and an advisor to the World Health Organization (WHO), concluded that cannabis can be as addictive as heroin or alcohol, and cause serious mental problems especially in adolescents and youth. Wayne Hall’s study has been published in the prestigious medical journal The Lancet.

In turn, Mark Winstanley of the Rethink Mental Illness organization, in statements to the British newspaper Daily Mail, said that marijuana is not a safe drug as many claim, because scientific

The book Abbie Testaberg co-authored, “Cannabis Primer” is seen on the table as she and her husband Jody go through a to-do list at the Kinni Hemp Co., in River Falls, Wis., on April 18th. | Emily Hamer/Wisconsin Center for Investigative Journalism

studies have shown that its use is linked to psychosis and teen schizophrenia and smoking weed is “essentially playing a very real game of Russian roulette with your mental health.” Jean-Sébastien Fallu, an expert in the study of addictions at the University of Montreal, in Canada, commented that “the legalization of cannabis does not mean that it is a harmless substance. We must insist on it. There are several legal products, such as sugar and alcohol that we know have consequences. Now, legalizing marijuana is a positive measure simply because the ban has been worse. ” But while there are selective critics who seem willing to stigmatize and aim only at the dangers of marijuana, a silent enemy continues to advance in the United States: opioids, whose medicinal use has skyrocketed in the country causing a chain of addictions, an epidemic; and even a pharmaceutical bubble that is causing about 60,000 deaths each year. That is, more deaths than the Vietnam War where an estimated 58,000 US soldiers lost their lives.

studies have shown that marijuana can effectively treat chronic pain, for which opioids are commonly used. But unlike opioids, medical marijuana does not cause fatal overdose, so cannabis could supplant opioids and save some lives.

The marijuana market is something like betting on the winning horse since it is a highly profitable business that goes far beyond simply smoking weed.

The opioid crisis in the United States and Canada from the abuse of synthetic drugs such as fentanyl, 50 times more potent than heroin, continues to have the attention of United Nations experts. This agency estimates that 4% of all American adults consumed some type of opioid at least once in 2017. Precisely, medical marijuana would be a potential way to help combat the opioid epidemic. Various bizrepublic.com

57

2

biz republic

|

International Magazine, September 2019

fashion COLOR TREND FOR SPRING/ SUMMER 2020 ▶

NOTABLE UPCOMING DESIGNERS AT THE NYFW ON SEPTEMBER 6TH, 2019 INCLUDE: KIMIMI SWIM - MWEAR & INDONESIANDIVERSITY Written and edited by Anton Werner.

P

antone Institute has released the 2020 edition of Pantone Fashion Color Trend Report Spring/Summer for New York Fashion Week.

Spring/Summer 2020 NYFW Color Palette

This season’s report features the top 12 stand out colors, as well as current takes on the four classic neutrals we can expect to see on the runway as fashion designers introduce their new spring/summer collections.

Spring/Summer 2020 Classics

According to Pantone Color Institute experts, colors for Spring/Summer 2020 New York, express our desire for a sense of the familiar.

Friendly and relatable, a palette of colors that conveys a sense of ease. At the same time, in this era of personalized self- expression, this palette of recognized favorites uses the familiar to take some unique twists and turns highlighting elements of humor, modernity and entertainment.

Colorful favorites coupled with seasonal core shades come together to create a palette of modern color classics:

Displaying an element of natural sophistication and versatility, this season’s core hues serve as singular color statements or as a foundation for playful color contrasts:

“Combining our desire for stability, creativity, and more spontaneous design approaches, the color palette for Spring/Summer 2020 infuses heritage and tradition with a colorful youthful update that creates strong multi-colored combinations as well as energizing and optimistic pairings,” commented Leatrice Eiseman, Executive Director of the Pantone Color Institute. bizrepublic.com

59

health

Its effects after inhalation.

NATIONAL INSTITUTE OF HEALTH IS SHOWING AN ALARMING INCREASE IN VAPING AMONG TEENS

60

biz republic

BE AWARE OF THE DANGER IN VAPING

DR. DILCIA GRANVILLE, PHD. PRESIDENT DIP AND SEE, LLC

▶ E-CIGARETTES ARE DEVICES THAT DELIVER AN AEROSOL TO THE USER BY HEATING A LIQUID THAT USUALLY CONTAINS NICOTINE, FLAVORINGS, AND OTHER CHEMICALS.

V

aping has become the latest trend among youth and has turned into the preferred vector for nicotine delivery among teens. The e-cigarette is the primary instrument used to heat liquid into vapor, which is inhaled. Recent research by the National Institute of Health shows an alarming increase in vaping among teens h t t p s : / /n e w s i n h e a l t h . n i h . g o v/2 0 1 9/0 2 /v a p i n g - r i s e s among-teen A recent reported epidemic of lung injuries and recent deaths, including a patient in Minnesota, hospitalized for vaping-related lung illness, reveal that many dangerous substances used in vaping could be lethal, as reported by the Centers for Disease Control and Prevention: https://www.cdc.gov/tobacco/basic_information/e-cigarettes/severe-lung-disease.html The Federal government including the Centers for Disease Control and Prevention (CDC), the Food and Drug Administration (FDA), and local public health agencies are working with this vaping outbreak and are investigating the deaths of individuals, as well as the high incidence of lung injuries associated with deleterious substances reported to be found in vaping products.

• According to the CDC, more than 450 potential or confirmed cases of severe lung injury have been reported in 33 States. CDC indicates that many of these cases reported using cannabinoid products, such as tetrahydrocannabinol (THC). As of September 6, 2019, over 450 possible cases of lung illness associated with the use of e-cigarette products have been reported to CDC from the following 33 states and 1 U.S. territory: AR, CA, CO, CT, DE, FL, GA, IA, IL, IN, KS, KY, LA, MD, MI, MN, MT, NC, NE, NJ, NM, NY, OH, OR, PA, SC, TN, TX, UT, VA, VT, WI, WV, and the U.S. Virgin Islands).

The FDA reported that even though they did not have enough data at this point to conclude that Vitamin E acetate is the cause of the lung injury in these cases, the agency believes it was prudent to avoid inhaling this substance. Because consumers cannot be sure whether any THC vaping products may contain Vitamin E acetate, consumers are urged to avoid buying vaping products on the street, and to refrain from using THC oil or modifying/adding any substances to products purchased in stores. Additionally, no youth should be using any vaping product, regardless of the substance.

• Five deaths have been confirmed in California, Illinois, Indiana, Minnesota, and Oregon.

At least one of the associated deaths that has been publicly related

In particular, many of the samples tested by the States or by the FDA as part of this ongoing investigation have been identified as vaping products containing THC, a psychoactive component of the marijuana plant, and further, most of those samples with THC tested also contained significant amounts of Vitamin E acetate. Vitamin E acetate is a substance present in topical consumer products or dietary supplements, but data are limited about its effects after inhalation.

CDC, several states, and federal partners are investigating a multistate outbreak of severe pulmonary disease associated with using e-cigarette products.

Biz | HEALTH Youth, young adults and women who are pregnant should not use e-cigarette products. to illicit THC vaping by the Minnesota Health Department, Minnesota health officials have confirmed the first death in the state associated with an outbreak of serious lung injuries related to vaping. The Minnesota patient was over 65 years old and died in August after a long and complicated hospital stay. In many cases of illness reported by the States, patients have acknowledged recent use of THC-containing vaping products while speaking to healthcare personnel, or in follow-up interviews by health department staff. To date, Minnesota has 17 patients who have been classified as confirmed or probable cases. An additional 15 potential cases are under investigation.

Patients have been hospitalized for days to weeks, including many who were in the intensive care unit. Of those cases who have been interviewed, all reported vaping illicit THC products. Many also reported vaping other products including those that contain nicotine.

Meanwhile, people should avoid vaping illicit THC products, as the available evi-

62

biz republic

dence shows many of the injury cases had exposure to such products. Also, people with a history of vaping who are experiencing lung injury symptoms should seek medical care. People experiencing symptoms should avoid using e-cigarettes and other vaping products.

Some of symptoms reported among cases included shortness of breath, fever, cough, and vomiting and diarrhea. Other symptoms reported by some patients included headache, dizziness and chest pain.

However, in the interim, the public health agencies encourage people to help protect themselves and avoid buying vaping products of any kind on the street, and to refrain from using THC oil or modifying/ adding any substances to products purchased in stores. If you continue to use these THC-containing vaping products, monitor yourself for symptoms (e.g., cough, shortness of breath, chest pain) and promptly seek medical attention if you have concerns about your health. If you are concerned about your health after using a vaping product, contact your health care provider, or you can also call your local poison control center at 1-800222-1222. Health care providers also can contact their local poison control center.

CDC and the FDA encourage the public to submit detailed reports of any unexpected tobacco or e-cigarette-related health or or product issues to the FDA via the online Safety Reporting Portal: https://www.safetyreporting.hhs.gov/SRP2/en/Home.aspx

DR. DILCIA GRANVILLE is the President of Dip and See, LLC. She recently retired, after almost 30 years of public service with the US Food and Drug Administration (FDA)/ORA/OCPM Office of Communication at the New York District Office.

ONLINE SAFETY REPORTING PORTAL: https://www.safetyreporting. hhs.gov/SRP2/en/Home.aspx

bizrepublic.com

2

2

biz republic

|

International Magazine, September 2019