The Shady Side of Subnational Diplomacy

Spotlights are focusing on the shady side of #SubnationalDiplomacy influence during US elections. This evil twin of a transparent and productive form of local-to-local commercial engagement lays traps among unsuspecting state and local elected officials (see below). The effect is pronounced during too-close-to-call elections. Longer term, it erodes the economic health of institutes, research centers, and communities by simplifying theft of intellectual property and cyber incursions.

Trade and investment accords between local governments and institutions abound on the sunny side of the street, underpinning national-level trade agreements and fortifying local economies. I discussed these beneficial accords in a recent address to Southern California business leaders, and cautioned them against dubious and insidious influence peddling that targets locally elected officials and ultimately weakens the economic resolve of communities.

"Recently, foreign governments have increasingly used cutouts to circumvent U.S. lobbying laws and contact state-level officials directly," stated an excellent article in Foreign Policy. Recent newsworthy skullduggery involving foreign players infiltrating the functions and campaigns of trusted public officials in New York, New Jersey, Tennessee, California, and New York City illustrates how porous the barriers can be against such influence in local jurisdictions.

Foreign representatives act locally to advance their causes — or thwart that of their political opponents — in most unexpected ways, under the guise of delivering foreign investment wins in the hyper-competitive world of economic development. Contact details for such agents may include the terms Institutes, Cultural Societies, or Sovereign Wealth Funds.

Also slipping through these porous barriers are cyber criminals who take aim at highly prized intellectual property conceived and formed by US research and development facilities. When I was stationed at the US Embassy in Bucharest as Commercial Officer, I teamed with US Department of Justice colleagues to elucidate these vulnerabilities to the country's leading research arms, supported by the Federal Bureau of Investigation's anticorruption arms. Statistics on the damage done report losses to national economies in the hundreds of billions.

Leaders of research facilities, local and state elected officials, and industry regulators must remain hyper-vigilant against such incursions under the guise of new partnerships. My work as a global trade advisor includes formation of vetted and trusted channel partnerships of reseller and technology developers, especially in large and complex international markets; and guidance for foreign companies who intend to expand and operate in North America.

Made in North America, a Brand Cachet

When it comes to brand dominance, what counts most? Reliability, quality craftsmanship, and innovation come to mind, and they are all ascribed to products and services that originate from manufacturers, providers, and technologists in Mexico, Canada, and the US. These products, with their North American stamp, not only meet but exceed global standards, making us a force to be reckoned with in the international market.

This enviable Made in North America brand is fortified by a tri-national trade agreement referred to as
USMCA, CUSMA, and T-MEC (can you guess which acronym pairs with which country?). Enacted 30 years ago, NAFTA (which in 2020 became USMCA et al.) was the official declaration on the North American Competitive Edge and took its place in the Troika of Trading Blocs alongside the European Union and the nation of China. 

Throughout my tenure promoting exports and attracting foreign direct investment to North America, audiences in the three countries wherein I served as a US commercial diplomat were drawn to attributes such as reliability, cost-efficient manufacturing, transparent business dealings … and that certain
je ne sais quoi brand cachet that is unique to products designed and built in North America, setting them apart from the rest.

Infrastructure and funding resources are vital to ensure our companies sustain this competitive edge. Communities in Canada, Mexico, and the US compete fiercely to attract high-value foreign investment funds, such as Clean Energy Partnerships that originate and are promoted by local governments. (See my
blog post on Subnational Diplomacy.)

Uniquely North American Brands: Indigenous Communities and Small Business Engagements

The USMCA pact accommodates small businesses that export uniquely North American brands, which in turn creates a stronger intra-North American supply chain. This initiative also supports Native American (US), Indigenous (Mexico), and First Nations (Canada) rural manufacturers and women- and minority-owned businesses. The US Commerce Department and their federal agency counterparts quickly developed trade missions tailored to these groups, further extending the globe’s small business ecosystem. And, since most people in the world work for small businesses, that just makes for stronger communities everywhere.

Learn a bit more about some government initiatives
here, and read about my work in global branding strategies here.