WTCA SPRING MEETING IN SEOUL SHOWCASES ASSOCIATION PROGRESS ON MANY FRONTS

SEOUL -- The April 23-26, 2001 WTCA Spring Meeting in Seoul featured a variety of presentations and discussions aimed at enhancing the WTCA's services to the world business community and helping WTCs to serve their regions more effectively. Hosted by the Korea International Trade Association (KITA), operator of WTC Seoul, the meeting attracted 370 delegates from over 80 cities. This included 150 WTC delegates and 20 accompanying persons. There were also 200 trade mission delegates, a record number for any Spring Meeting or General Assembly to date.

ROK President Attends Opening Ceremony

Republic of Korea President D.J. Kim attended the Spring Meeting's opening ceremonies on April 22, together with many senior government officials and an audience of over 700 trade and civic leaders. The President spoke very positively about the WTCA, calling it the "largest and most important trading association in the world."

In WTCA President Guy Tozzoli's opening ceremony remarks, which were televised throughout the country, he complemented the very impressive facilities and services of the Seoul WTC, saying: "The superb World Trade Center in Seoul is a direct result of the outstanding leadership provided over the years by the Korea International Trade Association, which has always played an important role in the World Trade Centers Association." WTCA Chairman Bryan Montgomery also spoke at the opening ceremonies, along with Mr. Jae-Chul Kim, Chairman and CEO of WTC Seoul and KITA.

New Directors and Members

In his progress report to the members, Mr. Tozzoli announced that the WTCA Board had elected two individuals, Mr. John Adeleke of WTC Nigeria - Lagos and Dr. Jia-Dong Shea, Chairman of CETRA and Taipei WTC, to fill vacancies on the Board. Their terms will expire in October 2002.

The Board also approved six new applications for WTCA membership, as follows:

WTC Abuja, Nigeria - Regular (Option)
WTC Coimbra, Portugal - Regular
WTC Palm Springs - Regular
WTC Malpensa Airport, Italy - Regular
WTC Malta - Regular
WTC Jackson, Mississippi - Regular

Mr. Tozzoli complimented the WTC New Orleans for bringing in the new member from Jackson, Mississippi and thereby qualifying for the $10,000 incentive payment available to all WTCA members who recruit new Association members.

The new members and other changes approved by the Board bring total WTCA membership to 322 organizations in 95 countries, consisting of 305 regular members and 17 affiliate members.

WTC Marketing Agreement Reached with TradeCard

Mr. Tozzoli reviewed the impressive progress being made by TradeCard Chairman and CEO Kurt Cavano and his team, and announced that he had just reached an agreement with TradeCard for WTC marketing of the service. The TradeCard service will be offered in those regions where TradeCard has the infrastructure to support the transactions. At present, this includes the United States, Canada and areas in Asia. The areas covered will grow to include Europe and South America in the next few months.

Qualified WTCs will receive 5% of the net income for every TradeCard transaction completed by the companies they recruit for the service, and 10% of the net income per transaction if the WTC recruits both the exporter and importer involved in a transaction. Net income is defined as the gross income received minus the cost of the payment guarantee and charges for transfer of funds. As an example, if the transaction fee is $150, the net is $101 so the WTC would receive approximately $5 per transaction for each party they recruit. These commissions will continue for three years after the firm is enrolled in TradeCard, and this term can be extended if the enrolled firm uses the service for 3,000 transactions during the three-year period. The companies recruited for TradeCard need not be members of any WTC.

To increase the program's appeal, the normal $250 annual TradeCard membership fee will be waived for companies recruited by WTCs and which execute at least two TradeCard transactions in the first 12 months. Also, the normal $650 annual fee to cover the COFACE credit rating and 100% guarantee of the importer's payment obligation to the exporter is waived for the first year.

Mr. Tozzoli noted that this arrangement with TradeCard will generate a revenue stream for WTCs while serving as a useful tool for WTC membership recruitment. Training and promotional materials will be made available to all participating WTCs. While the initial training will be conducted in New York, subsequent sessions will be organized on a regional basis.

Committee Activities

The WTCA's eight standing committees presented a variety of information and initiatives for delegate review and discussion. For example, the value of WTC participation in the annual MIPIM real estate show in Cannes was emphasized at the Facilities and Functions workshop. Reports of regional coordinators were heard at the meeting of the Industrializing Nations Committee, where Mr. Ousama Ghannoum of WTC Abu Dhabi has been named chairman, succeeding WTC Ruhr Valley's Mr. Gunter Ehring, who is retiring. At the workshop of the Information and Communications Committee, attendees were updated on the latest enhancements to WTCA OnLine, whose functionality and usefulness have been greatly improved.

The Committee on Planning and Finance reviewed all aspects of the WTCA's finances, and the Tourism and Cultural Exchange Committee reported on a variety of topics, including plans for the next tourism poster exhibition at the October 2001 Sao Paulo meeting, and the Globalization and Cultural Identity Forum in Charleston next month. The principal program of the Trade Education and Training Committee is the Internet-based World Trade Center University (WTCU), which is partnering with the State University of New York at Buffalo and with other universities. WTCU will provide a top quality distance learning program, while sharing revenues with WTCs that market the service in their respective regions.

Attendees at the Trade Fairs and Trade Marts Committee heard a report by Nicola Jelincic of WTC Zagreb on plans for the September 17-23, 2001 South-Eastern Europe Trade Exhibition and Conference at the Zagreb International Autumn Fair. As reported earlier, the WTCA-sponsored program was developed in support of the Stability Pact for South-Eastern Europe, and WTCs in the Balkan region will help local manufacturers participate in a special WTC pavilion at the Fair. Moderated by WTCA Chairman Bryan Montgomery, there was also a panel discussion on the involvement of WTCs in trade fairs in the Middle East, Far East and Pacific Rim. Speaking for the Middle East was Mr. W. Attalla, General Manager of WTC Dubai, while Mr. K. Kito, Managing Director of WTC Osaka, commented on the Pacific Rim region. The Asia view was presented by Mr. Thomas Tsou, Deputy Chairman of Taipei WTC, and by Mr. Xu Yuwei, Deputy Chairman of WTC Beijing.

Excellent progress was reported by the Committee on WTC Standards, Quality and Reciprocity, which has certified eight WTCs since the October 2000 Boston meeting. They are the WTCs in Ekaterinburg, Helsinki, Metz, New York, Novosibirsk, Stockholm, Strasbourg and Turku. In addition, three silver certifications were awarded to WTCs in Macau, Portland and Seoul that have been re-certified. This brings the total number of certified WTCs to 72, including six with silver certifications. Currently, there are more than 12 WTCs waiting for their first certification visit, and an additional 10 ready for re-certification.

Trade mission delegates were pleased with the matchmaking activities of the KITA team.

Finally, a very interesting cultural and social program was organized by KITA for all attendees. Highlights of this program included traditional music and dance as well as cultural tours of oriental health clinics and a potters' village.

WTCA President's Contract Extended

At its meeting during the General Assembly in Seoul, the WTCA Board approved a two-year extension of WTCA President Guy Tozzoli's contract, effective February 2002 when his present contract expires. His contract may be extended further if agreeable to the Board and to Mr. Tozzoli, and when he retires as WTCA president, he will be given another two-year assignment within the WTCA.

Dated: May 16, 2000