Saturday, April 1, 2023

A warning to Spanish companies against US protectionism

This report was made through a survey of 143 Spanish companies that operate there (130) or are interested in doing so (12), through the opinion of experts in the said market series and the testimonies of several Spanish people. they have years of experience in this sector as Acesur, ADEX, CAF, Cosentino, GMV, Mapfre, Santander and SENER.

From the results of the survey, it can be seen that 55% of the companies in the sample state that in 2022 they recovered the level of business before the pandemic, 33% indicate that 2023 will be the year in which they will return. to the levels before the health crisis and only 12% consider that the recovery will take place from 2024 onwards, with this recovery in the billing more pronounced for the most stable companies in the said market.

What impact do protective measures have?

About 30% of the public companies surveyed that the protectionist trade policy applied by the US State had an impact on their exports to that country, 36% of the companies in the industrial sector acknowledge that this type of measure had a significant impact either. important in their policy, and only 5% of the sample of state companies were affected by the NAFTA reform.

Regarding the future perspective regarding this type of measure, more than half (53.5%) indicate that it has a moderate impact and also 22% can consider it to have an important or important impact. Across sectors, the industry believes with nearly a third (31%) of those surveyed that protectionist measures would be sufficient or important to open up new opportunities in the United States.

What are the reasons, challenges and strengths?

For 78% of companies, the turnover in this market is important or the most important factor in their decision to act in this country. Other factors, such as image and dignity (80%), or the possibilities of contingent partners are also highly valued (78%). For companies in industrial sectors, innovation and technology are demonstrated and also perceived as important.

Spanish companies recognize a series of challenges in the future, the most important being the entry of new competitors. Thus, 45.9% consider the entry of new competitors to be the biggest challenge they face, followed by regulatory changes (34.3%). As strengths, companies point to the quality (63%) of the products offered, the image and prestige of the brand (71%) and the competitive price (67%). Partnerships with other business partners are considered to be more than 80% of partnerships. In general, a very high proportion of companies believe that the main reasons for their success in the United States are the quality of their products and services and their partnerships with other partners.

The Spanish origin is mentioned by 61% as a strength, while another 39% of this origin represents a weakness that reduces its value. It is the food and beverages sector where the most marked is Spain (76%), but this percentage drops to 50% in the industrial sector.

Given the challenges faced by Hispanic companies in the US, what kind of support do they need from the Administration and other institutions? 62% of companies consider that identifying business opportunities is the most important. So are the identification of partners and brand promotion in Spain, since more than 40% of companies need help in these two areas.

Commerce with Spain

Spain imported goods worth 17,089 million dollars from the United States of America, while Spanish exports to that market were 14,769 million dollars in 2021, which represents a trade deficit of 2,320 million euros and a coverage of 86.42%.

By sector, machinery and mechanical engineering products are the most exported products, followed by fuels and mineral oil, electrical machinery and materials, vehicles and automobiles and pharmaceutical products. Spanish imports from the United States are, primarily by sector, fuels and mineral oils, then pharmaceuticals, machinery and mechanical devices, machinery and optical materials, electrical and electrical machinery and materials.

Regarding the services sector, imports from the United States of America are 4,464 million dollars, with exports of 7,454 million dollars, which represents a Spanish surplus of 2,990 million in 2021.

Interval bilateral flows show that investment in Spain from the US was 4,293 million dollars, while Spanish investment in the US market was 5,145 million dollars. Spain leads 11 in direct investment in this region.

Nation World News Desk
Nation World News Desk
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