Author: raafat

Oranges are a popular citrus fruit in winter, and are one the most important source rich vitamins, minerals and nutrients,  with Egypation orange varieties between Baladi orange and Valencia orange.

In that article we list some facts about our industry for ‘Valencia’ ….

A large scale spherical ‘Valencia Orange, with a smooth surface  and thick peel, with an average diameter of 2.7 to 3 inches (69 to 76 mm; 6.9 to 7.6 cm), and a piece of this fruit weighs about 96 grams, has 45 calories and 9 grams of sugar, and December is the harvest season for this The type of orange in Egypt.

“Valencia” are also an essential source of juice, a good source of vitamin C and fiber as well as containing antioxidants that help boost immunity.

Valencia orange  as an export for “EG Gate” 

 

“EG Gate” Company is Famous for Importing and exporting agricultural products Especially “Valencia” , which is considered one of the juices best choice at summer times.

 

 

Indeed, distance and borders are disappearing so that the countries of the world stand by each other to meet their needs… Only globalization can link the east to the west , so that the world will prevail in openness and cooperation, as the greatest evidence of this is the import and export of the world’s various food goods and products, especially the citrus import.

Citrus is the most widely used agricultural product worldwide, ranking 224th among the most traded products and 1070th among the most complex products according to the Product Complexity Index (PCI), resulting in a significant increased production and consumption of citrus fruits. Since 1980, the annual production of citrus fruits exceeds 70 million tonnes, with oranges occupying more than half of the production, according to the United Nations Conference on Trade and Development.

On the other hand citrus fruit production in the EUROPEAN Union reach 11 million ton in 2018, and revenues reached $12 billion, representing total revenues of both producers and importers, and citrus production continues to be relatively stable with a marked increase compared to previous years.

Spain tops global export market:

Spain remains the largest supplier of citrus fruits in the EU, accounting for 69% of total exports ($3.5 billion), while the Netherlands ranked second in the rankings with a share of $354 million, equivalent to 7 of total exports, followed by Germany with 5.3.

In the same vein, the price of citrus exports for 2018 in the EUROPEAN Union was $1,046 per tonne, with the export price increasing from 2007 to 2018 at an average annual rate of 1.3%.

As a difference, there were significant differences in average export prices among major export countries, with Germany receiving the highest export price ($1,245 per tonne), while Greece was among the lowest ($557 per tonne).

‘Egypt’ First Arab In The Export Of Oranges:

On the Arab side… Egypt ranks first in the Arab world in the export of citrus fruits, especially oranges, and second in the world with a peak of 1.14 million tons, after Spain, which ranks first with an export value of 1.6 million tons,  On the egyptian side, Russia ranks first among egyptian product imports with 21%, followed by Saudi Arabia with 20%, the UAE in third place with 7%, followed by the Netherlands with 5%, and England in the last place of the Egyptian orange importing countries with 4%. 

In the term of the global import market for 2018, France (1.2 million ton) the UK ranked in second place (602.000 ton), followed by Italy (369.000ton) and poland (357.000 ton). While the country receives a small share of total imports , Romania (269,000 tons), Portugal (183,000 tonnes), Sweden (160,000 tons), the Czech Republic (145,000 tons) and Belgium (141,000 tons) occupied.

The price of citrus imports still indicates a fixed pattern set by the European Union in 2018, which amounted to $933 per ton, but there were differences in import prices among major importing countries, Belgium received the highest price ($1,135 per tonne), while Romania had the lowest price of $745 per ton.

The favorable weather increase crop production, and in the past 8years oranges have been grown over large areas, as the result of its high consumption among countries of the world, where Egypt is the largest orange exporter (1,600 tons), followed by South Africa with a quota (1,230 tons), and then America got  Third place with a share (465 tons) and Turkey (350 tons).

Which Turkey specialized in cultivation of Mandrine with the highest standards of international quality, which made it to the top of the list of exporting countries with a share  (710 ton) followed by china in the second place with an annual export rate of (700 ton) Morocco also exports 595 tonnes and South Africa (285 tonnes) from Mandarin.

 Grapefruit was exported by South Africa (250 tonnes), followed by China with 230 tonnes, while Turkey exports 160 tonnes of grapefruit, followed by America with (56 tonnes).

With regard to lemons, Mexico ranked first in its export with (765 tonnes), followed by Turkey with (575 tonnes), South Africa with( 240 tonnes), and Argentina allocating (200 tonnes) of its share of its lemon production for export abroad.

5 steps to import citrus fruits successfully.

There are some basics that make it easier for you to import…..

• Country 

You should follow some of  criteria before you choose the country you import from, first you have to know import regulations assigned to that country, the commodity you need may be cheap to buy, but there are other factors that may increase its cost, and you should specify some information about goods that you need, such as If that item is subject to certain restrictions or restricted entry due to its origin in a restricted country.

• Supplier 

Which is the most important step that determines the success of receiving your shipment specially if you are anew importer , there are government agencies dedicated and ready to answer your questions, you can consult some trade and professional associations, or join international and local exhibitions, to know a large number of suppliers and then Choose what suits you among them, and once you contact an external supplier it is best to have an interview with them in their own country. 

• Fees and taxes

Import duties vary from product to product, depending on the item being imported, their declared value and country of origin, but in general import duties are calculated as a percentage of the declared value of the commodity, import duties can be as low as zero or up to 100. The declared value of the product.

• Freight forwarder 

You should find a documented shipping agent by providing daily updates from the moment you order with your shipping to receive your shipment in your hands.

• Freight 

Don’t wait for your cargo to be shipped at the last minute, it costs you a lot of money, in case of early shipment you may only pay for inventory, and keep in mind that there may be delays due to the failure to sail the ship on time, if you choose to ship your goods.

Trade Exchange can be defined as exchange of products between countries without the use of money, it is a simulation of a barter system. These products can be goods or services that are traded in international markets.

Trade exchange can be classified into main categories as follows:

•  “Bilateral trading” that takes place between two countries only 
• “Multilateral Trading” that take place between many countries 
•  “Regional Trading” that occurs between neighboring states. 
•  “ Domestic Trading” takes place between places that have surplus to others that have a shortage in the same product.
• “ International Trading” that takes place between different countries.

Benefits of  trade exchange

Trade exchange has many fruitful benefits that includes:

• “Reallocation of resources” which means the goods are redistributed according to where it is needed the most & will drive the best value from it, this facilitates commercial & economical operations.

 

• Exchanging makes all parties more satisfied.
• Exchanging trade reinforces economic & political relations among states.
• it works on developing & supporting the economy of the company as well as increasing the per capita income.
• it  controls the prices of the exchanged goods & minimize its fluctuations.
• it has a key target of reducing the unemployment between its nations.
• it facilitates projects funding.
• Trade exchange is utilized to fix cases of inflation & recession. 
• Trade exchange is considered as an indicator that measures the economic activity of a given country.

relation with international trade:- 

Trade was established by the inception & developing of human till it becomes a vital process in his life as exchanging goods & services between two or more parties.

 There is a direct relation between trade exchange & international trade, as the later has a crucial role in providing markets on a larger scale for exchanging goods & services due to three main reasons:

1. Diversification of resources allocation: 

what a country has a surplus in the other country may have a shortage in that same product, the thing that facilitates exchanging among them.

• Quality difference:

Due to the difference in facilities of manufacturing between countries; this stems in superiority of some countries over others so trade exchange take place to move these Superiorities to others in need places. 

• Different costs of production:

Countries tends to import goods & services from others that have lower production costs.

Foundations of trade exchange

Each country has a diversified needs than others which results in diversified demands of goods & services; so the global market has expanded to suit the needs of all countries, the foundations of the trade exchange may be divided into two main types:

1- The Abundancy & Scarcity of commodities:

Every country has different needs based on different requirements that may be divided into:

• Goods that the country produces on a large scale that cause a surplus which directs it to exporting, e.g. Egypt that exports onions, cotton & rice as it regarded from the first countries that export these products.
• Goods that a country produces in small quantities which directs it to importing the quantities that will compensate the shortage. E.g. Egypt imports wheat & meat to meet the needs of its market
• Goods that the country can’t afford due to the absence of its raw materials so the country tends to import these materials. E.g. Egypt import coffee, tea & tobacco.
• Goods that are produced in equilibrium with the domestic consumption & in that case that good don’t participate in the international trade.

2- International specialization:

There are some factors that complement each other to pursue the international specialization which divides into:

• Climate 

Climate conditions are considered a privilege in a country that is absent in another one. For instance, hot countries are famous for the production of bananas, spices & rubber while the temperate regions are famous for wheat & barley.Here comes the importance of trade and exchange to meet the shortage of both

• Diversification of natural endowments:

Where nature grants each country endowments that are unique to it, we may find agricultural crop production abundant in Canada, Australia, Egypt and America due to the presence of fertile soil for them, as the Gulf countries like Saudi Arabia and Kuwait are famous for producing oil and exporting it to the countries of the world.

 

‘International trade’…. The backbone of strong economic systems

 

In the context of international trade is one of the most important economic factors between countries because of the diverse goods it provides to consumers, and raising the standard of living, in addition to providing many opportunities for employment, the importance of international trade is its main role that strengthens the benefit of countries with each other.

 

International trade has also evolved as a result of geographical expansion, so that the world is in great need of it; Therefore, the importance of international trade for societies and nations could be reflected on the following points:-

 

• It is the most exploitable means of state resources and compensation for the underdevelopment in other countries.
• Helps provide many ‘specialty’ goods and services that provide each at lower prices.
• Stimulate countries to increase their production of goods.
• The rise and growth of the international economy due to the excellence of each country in producing certain commodities known for it and exporting it to other countries .
• Its creates many new markets, supporting marketing capability 
• Countries help build strong economic system, as well as promote economic development which contribute to the easy development  of countries 
• It increases the well-being of communities by providing many services and goods that allow consumer and investors to choose 
• Help to take the advantages abundant raw material  both for exporting and importing countries.
• They are important factors that help measure the capabilities of countries in both ‘competition, production in global markets, and product marketing’.
• It facilitated cultural and cultural exchange between countries and strengthened diplomatic relations as a result of making deals and agreements through import and export.    

 

Services Of International Trade

“Tourism And Travel” The Most Important Services Traded In International Trade  

International trading in services has grown significantly recently, as trading in goods were of greater prevalence till it reached approximately, the triple of services, that is due to its intangible nature in contrary to goods.

That intangible nature of services makes it undergo more restrictions, that’s because It is non-transferable so  requires physical proximity between service providers and customers, unlike international trade in goods which is tangible, storable, transportable and consumable in any place at any time.

Further, some services are provided by the public sector or it may be obliged by national legislation which may restrict its trading across borders. Also, the need of the buyer & seller to be face to face limits its proliferation. 

Despite all this, the progress in communications technology allowed more services to be traded, the most important among them are “Travel Services, Transportation Services, Business Services, Financial Services and Insurance, Communications and Computing Services, Intellectual Property Services, Professional and Administrative consulting Services, and Technical Services”.

 

Impact of international trade 

International trade & developing countries

The international trade is of great impact on the economical growth & and fulfilling basic humanitarian needs as it has a vital role in the progress of the developing countries, thus helping to reduce poverty & creating opportunities for emerging countries to participate in larger markets around the globe.

The best example is its help to Brazil, a strong agricultural sector, expand the world’s largest markets, making it the largest source of both soybean and beef around the world.

International trade provided the chance for the developing countries to be part of international production networks and supply chains, as the European firms use them for certain functions, such as ‘data processing and customer service” in which communication technology has facilitated the transfer of service functions from industrialized countries to less industrialized ones.

 

 

With the aid of Globalization, the concept of international finance grew. It fundamentally addresses the issues of monetary interactions among world’s countries. These issues may include currencies exchange rates, global monetary systems, foreign direct investments(FDI) and other important issues involved in international financial management.

On another side, it avails perceiving & maintaining balance of all international organizations fundamentals though no mutual change between them, International finance is considered one of the most vital economical instruments of international trade growth & staving it off from continuous economic fluctuations.

in particular, when concept of lending & borrowing has extended between countries as it may formulate modern secure ways to funding trade which facilitate goods & services circulation among them.

“Banking transfers” is perceived as one of the funding channels that is adopted by states to invest among themselves. It depends on prepayments made by countries with a commitment to pay the balance within the predetermined time interval by the “documentary collection” which the exporter’s bank provides to guarantee the full payment of all financial receivables of the foreign countries.

International finance importance

 

As the international finance plays an effective role in the international trade & exchanging of goods & services, that importance relates to some reasons as follows: –

• International finance is a key indicator to find the exchange rates & identifying the relative values of currencies besides comparing inflation rates for reconciling & eliminating debt securities.
• International finance maintains monetary system equilibrium that ensures peace between nations; otherwise, they will work for their self-interests regardless of others’.
• International finance is constantly reviewing global markets; as the economic factors aid in identifying whether the investors’ money is secured with the foreign debt securities.
• International finance organizations as international monetary fund IMF & world bank are the intermediaries that manage the international financial conflicts.

The parties involved in international trade are:

• Commercial funding corporations
• Insurance companies

• Banks

• Export credit agencies and service providers.

Exporter & importer cycle

The international finance is the third party in the completion of transactions between importer & exporter as it to an extent eliminates the payment risk for both, It also secures the international trade from the risk of currency fluctuations & political instability, It may identify the International currency exchange rates under the broadened lending & borrowing concepts among countries.

Instruments of international finance in international trade consists of: –

1. Banks Issue credit lines to aid both, importer & exporter.
2. Banks use “insurance” for freight & delivery of goods, & so guarantee the exporter’s accounts receivables.
3. The importer bank offers a letter of credit to the exporter bank stating payment when certain documents are provided, as it ensures for the exporter that the importer will commit to payment. In case of acceptance on the conditions listed in the letter; both parties should commit with it to complete the selling process between them.

International finance fences international trade from risks

•  International finance is a cornerstone on which importers & exporters depend to ensure the payment of their accounts receivables & evading risks that may arise from both.
• Consequently, the letter of credit is considered a tool that secures both parties as it guarantees the importer payment to the exporter once the issuing bank receives the proof that the later shipped the goods – as “bill of lading” and the terms of the agreement have been met.
• In the same vein, the buyer’s bank assumes the responsibility of paying the seller. The buyer’s bank would have to ensure the buyer was financially viable enough to honor the transaction. Trade finance helps both importers and exporters build trust in dealing with each other and thus facilitating trade.
• In the business sector, Trade finance allows companies to increase their revenue through trade by the help from private or governmental trade finance agencies; which facilitates getting new business with the aid of the creative financial solutions that trade finance provides.
• And at the other end of the spectrum, the international finance is a supervisor for the companies that lags their payment or may follow up a major customer or supplier that losing him may have some extended consequences. Also, it may avoid companies’ financial risks by providing credit facilities & accounts receivables.

 

 

 

 

Trends of International trade serve as a linkage that overcomes those established borders by states among them. International trade accomplished its pursuit of making the world act as a small village to deliberate its industries, thereby countries trade its products & services between its peers in order to emphasize the competitive advantage principle which is the core foundation of international trade.

The expansion of the marketplace between states proliferates the traded products & its diversification as:-

• the machinery & technology, nuclear reactor & practical tools & bibliography accounted for fourth of traded goods by 32.5%.
• Cars & trucks contribute by 8.9%.
• Mineral fuels such as oil, gas, coal, and refined products accounted for 14.4% of the value of globally traded ratios.
• The plastic got 3.4%

The proportion of other industries received the following:-

• Iron & steel 2.7%
• Organic chemicals 2.6%.
• Pharmaceutical products 2.6%.
• Diamonds, pearls, and gems 1.9%.

 

The following figure shows the most important commodities dominating the international trade market.

From 2008 to today, world exports of merchandise trade increased by 20%, and exports of manufactured goods grew at an annual rate of 2.3%, Of course, the FIFA 2018 World Cup in Russia played a role in the growth of commercial services by 12%, and on the other hand, There have been leading countries in the past 10 years, and they have also ranked first among the best traders of goods and services: “China, India, Mexico, and Ireland.”

By the beginning of 2020, growth rates are expected to rise to 6% in low-income countries, as they have in the last few years, many low-income countries have risen to join the list of middle-income countries, and have also jumped in their income levels.

Trends in international trade toward progress :- 

Competition between States was created, motivated by leadership and control in the area of international trade, which has led to the selection of several fundamental trends, Which is working to grow trade significantly and rapidly, and maybe:-

1. Technology transfer:

They are the basis for the diffusion of commercial technology among countries of the world, including reporting relevant knowledge to the recipient to the recipient; It also includes the transfer of non-commercial technology, such as those found in international cooperation agreements between developed and developing countries. These agreements are directly related to agricultural development or infrastructure, as well as cooperation in education, employment, and transport.

2. Growth in emerging markets:

The growth of emerging markets has affected both (India, China, Brazil and other parts of Asia and South America in particular) On international trade in all ways, as emerging markets increased with the current volume and value of international trade, leading to the emergence of a whole new generation of innovative companies.

3. Cooperation between States:

Countries cooperate with each other in thousands of ways through international organizations, treaties and consultations, and this cooperation may encourage the globalization of business by removing restrictions on them, so States may cooperate to obtain:

• Get mutual benefits 
• Attack problems that cannot be solved alone, and work to solve them together.
• Address concerns that lie outside the territory of any person.

It allows States to acquire mutual benefits, for example, groups of countries have agreed to protect the property of foreign-owned enterprises and to reduce restrictions on the entry of foreign goods and services into their territory. In addition, countries cooperate on problems that they cannot solve on their own, such as coordinating national economic programs (including interest rates) so as to minimize global economic conditions.

Groups of States have also allowed foreign airlines to land and fly over their territory, and on the other hand, the two countries have established agreements on how to exploit commercial areas outside any of their territories. It includes outer space (such as the transmission of television programs), and landlocked areas of oceans and seas (such as mineral exploitation).

4. Freedom of movement across borders:

Each country restricts the movement of goods and services across its borders, thus impeding the movement of international trade. This allows companies to benefit better from international opportunities and makes producers more efficient by competing against foreign firms, thereby providing consumers with a wider range of goods and services at a lower price.

 

Definition of International Trade … The Engine of the Global Economy Between The Past and The Present

 

 The definition of international trade may be that it is a set of rules that are used to regulate exchange routes of products internationally, by relying on trade regions and regions, as well as being known as a way to exchange food, capital goods  such as ‘equipment, raw materials’, and services such as tourism and inter-state travel services,It contributes to the strengthening of an international economy that affects international supply, demand and prices, and international trade is the main driver of the global economy, which is worth about $80 trillion annually

In that article we demonstrates the definition of international trade to ease  your forward readings …

How Does International Trade Work

The work of international trade is carried out using a series of documents, which support the following aspects:

• Commercial Conglomerate And Bilateral Commercial Agreements 

In order to move goods between countries, trade agreements must be understood,So Commercial Conglomerate And Bilateral Commercial Agreements are clearly used in the EU , which shows that your goods are flowing easily and properly without any restrictions on them, If goods are of dual military use, they are passed through ‘export controls’ 

• Structured Codes

Used in identifying and coordinating goods by placing codes that distinguish goods in terms of resources used And to develop the most prominent information related to the manufacture of goods, such as the country of final origin, It is also subject to local taxes and proof of delivery, as well as determining the status of your shipment, especially if you need a special treatment.

• Agreements And Laws In International Trade

 Undoubtedly that world trade is subject to laws that determine its courses action starting with agreements on managements of goods  transportation to damage law, and these law may affect insurance and intellectual property in all countries of the world 

• Currency 

The Difference in the bank price of currencies affects the profit rate in the importing and exporting world. Therefore, international trade understands how to convert your foreign currency in time to achieve the desired profits. 

History Of International Trade

International trade history back to the barter system that was replaced by commercial goods in the 16th and 17th centuries, International trade emerged in its 18th-century form coinciding with the industrial revolution, which led to a dramatic increase in global production 

 It also witnessed the transition towards professionalism at the beginning of the 19th century. In 1913, the Movement of States helped achieve economic freedom, eliminate quantitative restrictions, reduce customs duties in all countries to develop them, as well as allow all currencies to be converted into gold, an international business at the time.

Until World War came to change the shape of international trade and made countries use their controls, After the end of the war, trade was restored to its natural form after nearly 5 years, In 1920, the economic recession changed the balance of international trade between countries, leading to the World Economic Conference in May 1927 organized by the League of Nations, which was attended by the most important industrialized nations and the multilateral trade agreement was established.

Despite all this, it stagnated again in the 1930s, disrupting the economy in all countries and rising import duties. Countries are gradually getting to know the fact that the old system needs to be changed, as well as constantly reviewing their international trade policies.

In modern times, international trade has become much better thanks to economists who have developed theories based on the natural resources available with different countries. This gives them a comparative advantage in both  Economies of large-scale production Technology in e-commerce, product age and cycle of changes consistent with technological progress.