Minister of Industry Trade and Labor Ehud Olmert: "The ministry and Export Institute are trying to expand marketing and export encouragement tools." The Export Institute will operate the program.
The Ministry of Industry, Trade and Labor and Israel Export and International Cooperation Institute have agreed on the principles for export aid to consortia. The aid had been halted for over a year, when the program for export marketing promotion grants was cancelled. The final joint MOU was written at the end of last week, under which aid will be granted to companies that will jointly operate export promotion in a particular sector or market. The Ministry of Industry has not set a maximum amount for the aid, with the intention that the fund itself will determine the size of support for each project, based on its merits.
Minister of Industry Trade and Labor Ehud Olmert said the ministry was trying to expand marketing and export encouragement tools. The new export encouragement fund's sector track will operate four tracks as part of the existing program:
- Destination track - to develop infrastructures in destination countries. Four destination countries have been chosen to date: China; South Korea; India; and Mexico.
- Sector track - support for periodic representation for consortia of companies in an industrial sector organized for this purpose.
- Training track - marketing assistance for exporters under the existing track.
- Individual exporter track - establishing a state-backed loans fund for exporters similar to the small business fund.
Under the program, a consortium of at least five companies may apply through the Export Institute to the Ministry of Industry, Trade and Labor for aid for 50% of its export promotions cost, against a matching sum to be paid by the consortium. The grant and the matching sum will be paid into a special bank account that the Export Institute will manage and supervise. The aid will cover the consortium's costs in the following areas: exhibition (up to 30% of the budget); overseas advertising; market research; overseas marketing consulting; public relations; rent of offices and warehouses; representing services by commercial attaches on behalf of the consortium overseas; financing special projects; and any other activity that the consortium decides on as important for its business, in accordance with the fund committee's approval.
Published by Globes [online] - www.globes.co.il - on April 13, 2004