BLOGS

Dustin,

One needs factor in "the initiative of the 22 developing countries to reduce by at least 20 percent tariffs on some 70 percent of goods traded between these countries. The announcement was made at a ministerial meeting of the Global System of Trade Preferences (GSTP) of the United Nations Conference on Trade and Development. Such concessions may take place under the “enabling” clause of the WTO, which allows developing countries to offer one another tariff rates lower than those granted under most favoured nation status."

What does this mean for the the North America's ?? Commodities become cheaper because cost of raw materials will drop (Tariff elimination, by Sept 2010) plus couple that with lower cost labour. Based on these economic condition, it then becomes more feasible to beginning a costing exercise on outsourcing of products. This is the catalyst for the next round of talks/outsourcing.

The more I think of it, the more I feel that lot of US/CA Companies will outsource products, within the Latin America's countires being the biggest space for outsourcing. Companies will produce Goods & Services where its the cheapest to make. will use strategic tie ups to ensure the SC/Logistics costs are being met. While ensuring that Demand imperatives will be fulfilled at the lowest possible cost.

globalization, localization, offshoring, supply chain outsourcing,