Archive for the ‘Competitiveness’ Category

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U.S. Exports: Helping Create an American Economy Built to Last

February 7, 2012

This post contains external links. Please review our external linking policy.

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

Increasing U.S. exports is an essential part of shaping a healthier and stronger American economy.

This is a point that President Barack Obama made clear during his recent State of the Union Address, when he unveiled his “blueprint for an economy built to last.”  In the speech, the President outlined the four pillars that “an economy built to last” should be founded on:

Under Secretary Sánchez joins representatives from U.S. companies who have partnered with Commerce on its New Market Exporter Initiative

Under Secretary Sánchez joins representatives from U.S. companies who have partnered with Commerce on its New Market Exporter Initiative

  1. A new era for American energy, spurred by a commitment to homegrown and alternative energy sources; 
  2. Equipping young people and workers with the skills needed to thrive in the 21st century economy; 
  3. A renewal of the American values that demands fairness for all, and responsibility from all; and 
  4. Supporting the manufacturing sector to create jobs and make more American products.

This manufacturing pillar is especially important to us at ITA.  We know that this sector is critical for the middle class.  And, the middle class is the backbone of our economy.  That’s why we are committed to helping U.S. manufacturers succeed.

How?  By helping them sell more of their stuff in markets across the world.  Increasing U.S exports has long been one of the President’s main goals.  Two years ago, he launched the National Export Initiative, striving to double U.S. exports by the end of 2014. 

Many doubted that this could be done.  But, I’m proud to report that we are on pace to achieving this goal. 

This is good for jobs.  This is good for businesses.  And, this is good for the American economy.   

Reaching the goals of the NEI to date has been a team effort.  We’ve been committed and creative in the ways we are helping to boost U.S. exports.

As you’ll read in this issue of International Trade Update, we are promoting advanced manufacturing in the textile industry and expanding the New Market Exporter Initiative with the National Association of Manufacturers.  We are supporting the travel and tourism industry.  And, just this week, we signed a Memorandum of Intent with the City of Tampa, and its partners, to maximize the potential of its local port when it comes to exporting.

We’ve done a lot.  But, we are not satisfied.  Despite our successes, we remain just as focused on the future.

For example, later this month, I’ll be leading the first-ever ports and maritime technology industry trade mission to India.  This will give U.S. companies a unique chance to be a part of the huge infrastructure projects taking place in the country.  And, we have a number of exciting initiatives that will be unveiled throughout the year. 

Stay tuned.   

In the meantime, please reach out to ITA through export.gov or your local U.S. Export Assistance Center if you have, or know of, American businesses that would benefit from exporting.

Selling their products overseas will be good for jobs and local communities.  It will also go a long way in creating an American economy — built to last. 

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Creating Jobs: “Plane” and Simple

February 7, 2012

This post contains external links. Please review our external linking policy.

Kim Wells is a senior international trade specialist in the Office of Aerospace, with 19 years’ experience supporting aerospace exports.

Most people think of planes as a way of connecting people with destinations.  In the International Trade Administration (ITA), we know that just one plane connects thousands of workers here at home.

As with most exports of large, high-tech products, the export of one aircraft (or ship, or large piece of machinery) is the result of a huge supply chain that touches people and communities across the United States.

For example, in November 2011, Emirates Airlines signed an agreement to purchase 50 new Boeing 777-300ER aircraft with options for 20 more, totaling $26 billion at list prices.  Each 777 will be equipped with two American-made GE90 engines. Though the names on the plane may be “Boeing” and “GE”, the truth is that each aircraft is a finely integrated system of nearly four million parts from more than 11,000 suppliers specializing in everything from lighting to advanced avionics and seatback trays to landing gear. As a result, this single sale will support over 100,000 U.S. jobs in more than a dozen states.

These jobs are the kind of jobs the United States is seeking—high technology, high wage, and high skilled.  And with each of these jobs, thousands of other indirect jobs are created that support the work and lives of these employees.  In fact, the aerospace and defense industry employed over 818,000 people in the United States in 2009 and supported an additional 1.8 million U.S. jobs in related fields.

The U.S. aerospace industry has the highest trade surplus of any U.S. manufacturing industry and supports more jobs through exports than any other manufacturing industry.  At ITA, we know that U.S. firms—whether they make large planes or business jets, helicopters or aircraft engines—can produce products at home that will beat the competition overseas as long as they compete on a level playing field.  That’s why aerospace is an important export industry that will help achieve the goals of President Obama’s National Export InitiativeITA’s Aerospace Team is working hard to identify and create new export opportunities, break down barriers in foreign markets and ensure that level playing field for our manufacturers in order to create and secure aerospace industry jobs here in the United States.

So, is selling an airplane overseas good for the country and for American jobs? 

Yes–“plane” and simple.

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Promoting Advanced Manufacturing in the Textile Industry

January 26, 2012
This post contains external links. Please review our external linking policy.

Kim Glas is the deputy assistant secretary for textiles and apparel within the International Trade Administration’s Import Administration division.

The textile industry is alive and well here in the United States. I’ve spent several days this week with Francisco Sánchez, under secretary for international trade, in North Carolina touring two examples of textile industry manufacturing that represent the broad spectrum of the industry.

Francisco Sanchez, under sectetary of commerce for international trade, left, listens to plant manager Keith Nicholson, right, as he toured Parkdale plant 15 in Belmont on Wednesday morning. (John Clark/The Gazette)

Francisco Sanchez, under secretary of commerce for international trade, left, listens to plant manager Keith Nicholson, right, as he toured Parkdale plant 15 in Belmont on Wednesday morning. (John Clark/The Gazette)

The first is Parkdale Mills, headquartered in Gastonia, North Carolina. Parkdale is a prime example of a textile mill that is anything but traditional. Founded in 1916, Parkdale now is the largest producer of yarn, employing 4,000 at 25 plants. Through innovation and cutting edge technology in their manufacturing process, Parkdale has been able to remain globally competitive and contributes to our more than $12 billion in yarn and fabric exports in 2010.

During the past two years, increased demand for Parkdale’s diverse mix of high quality cotton, cotton blend, and polyester yarns has allowed the company to allocate more than $100 million on capital expenditures, creating nearly 1,500 jobs.

Parkdale hosted a unique industry panel of local textile representatives, to share with us the issues facing manufacturing, the importance of innovation for advanced textile manufacturing, and the importance of industry growth in jobs and exports.

The industry representatives included Polymer Group International (PGI), Unifi, Inc., Mount Vernon, Frontier Spinning, Pharr Yarns, Hanesbrands, VF Corporation, and the North Carolina Department of Commerce who are all very familiar with the changing face of textile and apparel production here in the United States.

Many people may not be aware that the United States is the second largest single country exporter of textiles, with $20 billion in exports in 2010. Businesses that contribute to this volume of exports range from small, family-owned and operated facilities to integrated mills that operate state of the art machinery and production equipment.

The textile and apparel industry provides the U.S. economy with a major source of employment and economic activity.  The industry is one of the largest employers in the manufacturing sector. Between 2009-2010, the U.S. textile and apparel exports grew 19 percent to $20 billion, and were up 14 percent through November of 2011.

North Carolina in particular has a high concentration of our textile industry. Many global leaders of the industry call North Carolina home. Freudenberg, the world’s largest producer of nonwovens, has two locations in the state, with its North American headquarters in Durham; Kimberly Clark, a vertically integrated manufacturer and converter of nonwoven products for the health and hygiene markets, with two manufacturing facilities; and PGI, one of the world’s leading companies in the hygiene, wipes, medical, industrial, and specialty markets with production operations in four locations in the state, with its headquarters in Charlotte.

There are more than 500 performance textile businesses located in 76 out of 100 counties across North Carolina. Performance textiles are fiber-based products that are valued for their technical function and properties as well as their aesthetics.

Our second tour was to see the future of textiles at North Carolina State College of Textiles. We toured the labs to see how technical advanced textiles are being used in aerospace, industrial, marine, medical, military, safety, and transportation. The global market for technical textiles was estimated to have a value of $93 billion in 2000 and expected growth is estimated at $127 billion in 2011.  There is huge expansion potential for this industry.

Advanced textile materials hold great potential for the U.S. textile industry, from textile heart filters, to textile composites used in airplane bodies, to highly flame resistant fabrics and clothing for soldiers, first responders and firemen – the United States is on the leading edge of new and innovative products and materials.

North Carolina State University’s College of Textiles “Centennial Campus”, is home to university colleges, departments, and research labs and also home to 61 industry and government partners who work with the university each day.  These partners are fully integrated into the university, working with faculty, students and staff.

Founded 113 years ago, the College of Textiles is the leading institution of its type with more than 2,000 graduate and undergraduate students.

The new Nonwovens Institute Partner Lab will revolutionize research and development in air, blood and water filtration and demonstrates the College’s close partnerships with leading companies throughout the world.  The Nonwovens Institute has more than 60 industry partners and is the largest industry-academic consortium in the United States.  These partners help drive the purpose-driven research taking place in the Nonwovens Institute and throughout the College of Textiles

It was a privilege to see both Parkdale Mills and the College of Textiles Centennial Campus in action. Meeting the students who are developing the future of the textile industry right here in North Carolina was a highlight of the trip. The current state of the textile industry is miles ahead of where it began and I look forward to the new innovations we will see in the near future.

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SelectUSA Brings Investment and Jobs to the United States

January 25, 2012

Barry Johnson is the executive director of SelectUSA and Aaron Brickman is the deputy executive director of SelectUSA

Did you see President Obama’s call to action to invest in America and boost job creation? Well if you missed it check out the White House blog post. Also at the forum, Commerce Secretary John Bryson moderated a panel discussion highlighting foreign direct investment (FDI) as an important source of economic and job growth in the United States.Bar chart showing the impact of Foreign Direct Investment in the United States in 2009. Increase in employmenet by 5%, GDP of 5.1%, Capital Investment of 12%, imports 31%, exports 21%, and research and development 14%. Source: Bureau of Economic Analysis

Currently, the United States is the largest recipient of FDI in the world. In 2010, FDI into the U.S. economy increased to $228 billion from $153 billion in 2009.While the United States has enjoyed this leadership position for decades, the share of FDI to the United States is decreasing. In the 1980s the FDI in the United States accounted for nearly 45 percent of the all foreign direct investment. Today, the United States accounts for less than 15 percent of total FDI flows.

At the Department of Commerce’s International Trade Administration (ITA) we are working to promote foreign direct investment in the United States because it is significantly impacts U.S. exports and jobs. U.S. subsidiaries of foreign companies are responsible for about 21 percent of all U.S. exports and support more than 5.3 million U.S. jobs – that’s about 5 percent of all U.S. employment!

Since taking office, the President has emphasized the unequivocal policy of openness to both foreign and domestic companies that invest in America. SelectUSA, which is housed within ITA, was created by President Obama in 2011 through an Executive Order to promote business investment in the United States.

The United States provides an ideal landscape for companies to build and grow their business. As the President reminded us, “companies are choosing to invest in the one country with the most productive workers, best universities, and most creative and innovative entrepreneurs in the world: the United States of America.”

And there is more. SelectUSA promotes the benefits of investing in the United States, including a strong system of intellectual property rights protection; unparalleled global access through trade agreements representing access to nearly 610 million worldwide consumers; and nearly 36 percent of global research and development expenditures taking place in the United States.

SelectUSA works with firms, economic development organizations, and other stakeholders to provide a comprehensive single point of contact for current and prospective business investors by:

  • Acting as an information clearinghouse and responding to inquiries about the U.S. business climate
  • Serving as ombudsman to help investors encountering confusion, delays or obstacles in a federal regulatory process
  • Advocating on behalf of the U.S. government in a globally competitive business location decision
  • Offering after care to companies that have U.S. investments

Companies and organizations use these services to help make business investment decisions when exploring the U.S. economy.

One of the companies in attendance at the White House forum, Canada-based AGS Automotive Systems, is a recent SelectUSA success story. The Company announced plans to manufacture bumper systems at an expanded facility in Michigan with an investment of $20 million.

Through the Commercial Service Canada’s introduction, SelectUSA met with AGS Automotive during its outreach visit to Toronto in September, 2011. Since then, SelectUSA has worked with AGS Automotive as the company evaluated its location decision among various options across North America.

Financial assistance and incentives offered by the State of Michigan were also pivotal in AGS Automotive’s investment decision. With these plans, the company will create 100 direct new jobs and retain its 50 existing jobs in the U.S. automotive sector.

The President also announced a new partnership between the Departments of Commerce and State to promote investment in the United States in ten priority countries through ITA’s Foreign Commercial Service and supported by U.S. embassies. A White House release explained:

“[t]his pilot effort will dedicate resources from Commerce’s Foreign Commercial Service (FCS) to investment promotion in 10 pilot countries representing 30 percent of foreign direct investment in the United States, expanding to cover 25 countries in 2013 representing roughly 90 percent of FDI.  U.S. Ambassadors will lead these efforts, engaging officials from State and other in country officials to assist investment promotion through business outreach, hosting ‘investment missions’ with governors and mayors, and connecting foreign firms to SelectUSA services.”

The pilot countries will be: Brazil, Canada, China and Hong Kong, France, Germany, India, Mexico, Russia, South Korea, and Spain.

Maintaining America’s industry competitiveness is an ongoing endeavor; however, with programs like SelectUSA, it’s much easier for companies of all sizes and from all business segments to make a sound decision to locate operations here.

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The Manufacturing Council: A Public/Private Sector Partnership for Progress

January 20, 2012

Nicole Lamb-Hale is the Assistant Secretary for Manufacturing and Services within the International Trade Administration.

Every day, American manufacturers put together different parts to build great things. 

Assistant Secretary for Manufacturing and Services Nicole Y. Lamb-Hale (center) with Commerce Secretary John E. Bryson (second from right) and Under Secretary for International Trade Francisco Sánchez (right) meet with the Manufacturing Council

Assistant Secretary for Manufacturing and Services Nicole Y. Lamb-Hale (center) with Commerce Secretary John E. Bryson (second from right) and Under Secretary for International Trade Francisco Sánchez (right) meet with the Manufacturing Council

Today, at the Department of Commerce’s Manufacturing Council meeting, different partners from the public and private sectors came together to do big things.  Specifically, we gathered with a simple goal: to support U.S. manufacturers. 

Why is the manufacturing sector so important?  It’s because, historically, it has been a key to U.S. economic growth, provided a ticket to the middle-class for American workers, and been home to some of America’s greatest innovations. 

Looking ahead, as Secretary Bryson recently told the U.S. Chamber of Commerce, “without a strong manufacturing base, we can’t create enough good jobs to sustain a strong middle class. And without a strong middle class, we cannot be a strong country.”

This is why supporting U.S. manufacturers is a priority for President Obama, Secretary Bryson, Under Secretary Sánchez, and all of us at the International Trade Administration.  We are committed to the manufacturing comeback.  And, thankfully, good things are happening. 

334,000 manufacturing jobs have been created over the last two years.  In the third quarter of 2011, manufacturing profits were up more than 7 percent compared to the first quarter. 

At ITA, we are committed to keeping this momentum going.  We do this in a variety of ways. 

This includes:

  • Helping U.S. manufacturers reach new markets:

Only 1 percent of U.S. businesses export.  Of those that do, 58 percent export to only one market.  There is potential for U.S. manufacturers to do so much more. 

With efforts like the New Market Exporter Initiative, we are working with private sector partners — like the National Association of Manufacturers— to provide U.S. businesses with the support they need to reach new markets and new customers. 

  • Ensuring that U.S. manufacturers are competing on a level playing field:

American-made products represent quality.  All businesses need is a fair chance to sell their goods and services, and ITA is committed to giving them this equal opportunity.

We continue to enforce anti-dumping and countervailing duty laws.  In addition, whenever needed, our Advocacy Center is ready to reach out to foreign-governments to make the case on behalf of U.S. businesses.

  • Bringing customers to U.S. businesses:

At ITA, we know that in this 21st century economy, we’ve got to be creative in serving U.S. businesses.  With our International Buyers program, we administer a sort-of reverse trade mission initiative. 

Every year, the ITA brings over 10,000 pre-qualified international buyers to U.S. trade shows.  We want U.S. products in front of as many customers as possible.  Why? Because sales impact profits.  And, profits lead to jobs.   

We are doing this and so much more.  If your business needs help, I encourage you to go to export.gov and begin the process of selling your goods overseas — today.

On a personal note, helping U.S. businesses is important to me.  I’m from Detroit, which has a rich history of manufacturing.

 I’ve seen how these industries can impact communities and lives.  And, all of us at the Department of Commerce are committed to ensuring that these sectors have this positive impact for years to come.

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Proud of Our Progress in 2011, Determined to Do More in 2012

January 10, 2012

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

At the International Trade Administration (ITA), we measure our success by the positive impact we have on jobs, businesses and the growth of our economy.  That’s why I’m proud to say that ITA had a great year in 2011, one full of many noteworthy accomplishments. 

Just to name a few:

Under Secretary Sánchez with two of the 56 members of the largest education trade mission to Indonesia and Vietnam that took place in March 2011.

Under Secretary Sánchez with two of the 56 members of the largest education trade mission to Indonesia and Vietnam that took place in March 2011.

  • U.S. goods and services exports were up roughly 16 percent in the first nine months of 2011 — the latest data available — putting the United States on pace to achieving the President’s National Export Initiative goal of doubling U.S. exports by the end of 2014;
  • There were six record-breaking months of U.S. exports during the year;
  • President Obama signed three important trade agreements with Korea, Colombia and Panama, which will support tens of thousands of jobs for the American people and create an abundance of new opportunities for U.S. firms; and
  • The United States’ host year for the Asia-Pacific Economic Cooperation (APEC) Forum was a tremendous success, strengthening our economic ties with a critically important region of the world.

I could go on and on.  We’ve achieved a lot.  But, all of us at ITA know that there is much more work to do.  Too many people are still out of work.  Too many businesses are still struggling.  And, the fact remains that only 1 percent of American businesses export; of those that do, 58 percent export to just one market. 

So, there is incredible potential for U.S. businesses to be more involved in the international markets and bolster their bottom lines.  We at ITA are determined to help them achieve these goals.  As part of this effort, we will continue to have an unprecedented focus on key initiatives.  These include: 

  • Ensuring that U.S. businesses seize the incredible opportunities developing in emerging technologies like renewable energy, and emerging markets, such as Brazil and India;
  • Continuing to level the playing field for U.S. businesses in international markets by vigorously enforcing trade laws, advocating on behalf of qualified American firms for contracts with foreign governments, and empowering entrepreneurs with the tools they need to compete;
  • Training our foreign commercial services officers — in markets across the globe — so that they can begin promoting foreign direct investment into the United States as part of the new SelectUSA initiative, the first coordinated federal effort designed to attract capital from overseas to spur economic development on our shores; and
  • Supporting advanced manufacturing, a sector that’s historically been the heart of our economy and provided a ticket to the middle class.  By expanding the opportunities available to U.S. firms in overseas markets, we will continue to help manufacturing businesses here at home sell their products, strengthen their bottom lines and impact jobs.

With each and every action we take, we fully realize that our best success comes when we partner with stakeholders like the readers of International Trade Update; you are leaders from the private sector, academia and a wide-range of other fields, and have been critical to our success. 

That’s why, throughout 2012 and beyond, we look forward to working with you to help continue our nation’s economic recovery. 

That’s a New Year’s resolution we can all rally around.

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Building it in America, Selling it Everywhere

December 21, 2011

Peter Perez is the Deputy Assistant Secretary for Manufacturing in the Manufacturing and Services division of the International Trade Administration

Commerce Sec. John Bryson speaks at a U.S. Chamber of Commerce Policy Insiders breakfast. Photo by Ian Wagreich / © U.S. Chamber of Commerce

Commerce Sec. John Bryson speaks at a U.S. Chamber of Commerce Policy Insiders breakfast. Photo by Ian Wagreich / © U.S. Chamber of Commerce

I had the pleasure of attending the Secretary of Commerce John Bryson’s speech at the U.S. Chamber of Commerce this past Thursday. Bryson laid out his plan for the Department, showing a strong focus on manufacturing exports as he begins his tenure as Secretary.

The phrase of the day, which in many ways embodies the goals of the Department of Commerce’s International Trade Administration (ITA), was, “build it here and sell it everywhere”.  After more than 43 years of real-world manufacturing experience at C.G. Conn and Steinway & Sons, I am excited to see the manufacturing industry receive the attention it deserves. 

As the Deputy Assistant Secretary for Manufacturing within ITA, enhancing America’s ability to “build it here and sell it everywhere” is something my colleagues and I work towards every day and I am excited about Commerce and the Administration’s renewed attention.

Secretary Bryson discussed three areas in particular – supporting advanced manufacturing, increasing U.S. exports and attracting more investment to American from all around the world – that will help the U.S. create jobs, rebuild the middle class, and ultimately build a foundation on which the economy can recover. ITA has the opportunity to be a key contributor to the success of Bryson’s three-part vision.

Manufacturing

As the Secretary said, manufacturing is no longer about old assembly lines, but conceiving and creating innovative and advanced products. The manufacturing industry isn’t just responsible for building cutting-edge products, but the research and development that leads to the final form. In fact, manufacturing companies are responsible for 67 percent of all business research and development in America. The manufacturing sector not only provides more than 11 million Americans with jobs, but for every job inside a factory, at least two more are created outside of it. Our own Manufacturing Council considers the issues facing the success and growth of modern American manufacturing and has made recommendations regarding energy policy, workforce development and trade promotion policies.  

Export

Possibly most encouraging, was Bryson’s concentration on efforts to expand American manufacturing businesses’ access and use of foreign markets. As Secretary Bryson mentioned, 95 percent of the world’s consumers live outside of the U.S., yet only one percent of our businesses export. ITA works hard to assist businesses interested in exporting by simplifying the process. We provide services for exporting businesses including helping them find reliable export financing, connect them with opportune foreign markets and deal with often complicated foreign rules and regulations. The power of exports is evidenced by the success of President Obama’s National Export Initiative (NEI) which has already helped U.S. businesses increase exports 17 percent in 2010 and 16 percent so far in 2011.

Bryson also highlighted ITA’s continued effort to find creative ways to grow U.S. manufacturing businesses through international trade. The Global Buyers Initiative partners ITA’s Commercial Service unit, their foreign counterparts, and FedEx to match the shipping company’s foreign customers with U.S. suppliers. We eagerly await the results of our pilot programs currently being implemented in France, Canada, and South Korea and will hopefully expand the program worldwide in 2012.

The Secretary announced that not only will ITA and Commerce be looking to increase the number of countries we export our products to, but also intensify efforts on strong export growth markets such as China, Brazil, and India. As we hone in on these particular markets, we are reminded of the need to update our export control laws as well as be mindful of unfair overseas trade barriers. I agree with Secretary Bryson that it is imperative businesses are competing internationally on a level playing field and will flourish or flounder “based on the quality and cost of their goods and services.”

Foreign Investment

Bryson’s final area for growth is direct foreign investment. While direct foreign investment may mean bringing companies into America from outside our borders, it also means more American manufacturing jobs and exports. I applaud Secretary Bryson for recognizing the importance of attracting investments by using our already well-positioned foreign commercial service officers and better showcasing what we have to offer. Initiatives such as SelectUSA are already working to disseminate information and services to potential foreign investors. Through SelectUSA and other programs, ITA is continuing to work to ensure the world knows the United States is “open for business”.

You can read the full text of Secretary Bryson’s speech here.

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Made in America Means More Export Sales for Manufacturers

December 14, 2011
This post contains external links. Please review our external linking policy.

Nicole Lamb-Hale is the Assistant Secretary for Manufacturing and Services within the International Trade Administration.

“Made in America” is something we should strive to see stamped on products sold not only at home but abroad as well. Exporting goods has become an essential tool for U.S. manufacturers today as we look to jumpstart our economy through the success of American businesses.

As a Midwesterner, I grew up with an appreciation for the manufacturing industry, which is why I am excited to share with you a recent opinion article I wrote, and was posted here. Many businesses are unaware of the great sales opportunities overseas that spur growth and job creation back in the U.S. and that exporting can be beneficial for businesses of all sizes.  In fact 95 percent of the world’s consumers reside beyond our borders and many foreign markets are currently growing exponentially.

In my article I tell the story of a Schaumburg, Illinois business man who had the foresight to diversify both his product offerings and markets. By exporting his American made products to international markets he was able to save and rejuvenate his family’s business. President Obama and the International Trade Administration (ITA) are dedicated to helping businesses prosper and create jobs at home by opening new avenues for international exportation. Through the facilitation of new trade agreements, market research, match-making and other services ITA is working to make U.S. manufacturers successful exporters.

I hope you will take a moment to read about one of many success stories here at ITA, and share yours with us.

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The ITA’s Work to Keep Americans Working: A Message from Under Secretary Francisco Sánchez

December 7, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

Our focus at the International Trade Administration is on supporting American jobs, creating new opportunities for U.S. businesses and strengthening our partnerships abroad to bolster our economy here at home.

Francisco Under Secretary of Commerce for International Trade

Francisco Under Secretary of Commerce for International Trade

As you’ll read in this issue of International Trade Update, we are working every day — from the community level to the international level — on behalf of the American people to achieve these goals. And, as we look out at the landscape, it’s clear that one area that will be a key to our economic future is the Asia-Pacific.

President Obama recently said that “there’s no region in the world that we consider more vital than the Asia-Pacific region. And, we want, on a whole range of issues, to be working with our partner countries around the Pacific Rim in order to enhance job growth, prosperity, and security for all of us.”

That’s why the recent Asia-Pacific Economic Cooperation forum held in Honolulu, Hawaii was so important. I was proud to participate in this conference with President Obama, Commerce Secretary John Bryson, a host of other Administration officials and Asia-Pacific leaders. And, it’s safe to say we all left energized by the incredible possibilities and opportunities.

The 21 APEC member economies represent 2.7 billion consumers and generate 55 percent of the world’s GDP. In fact, the region is home to six of our top ten trading partners. Despite these stunning numbers, however, there is room for even more growth.

As this year’s APEC host, the United States has worked to fulfill this promise, and a great deal of progress has occurred. For example, APEC leaders agreed in Honolulu to:

  • Help small and medium-sized businesses by establishing business ethics principles and simplifying the customs process to make it faster, easier and cheaper to trade goods;
  • Reduce tariffs and other barriers that hinder the global exchange of environmental goods, one of the world’s most promising sectors; and
  • Reform the regulatory environment to level the playing field, enhance transparency and lessen unnecessary burdens on businesses.

ITA has been a valuable asset to this work, and we look forward during the APEC 2012 Russia host year to building on these results to strengthen the economy worldwide, for both our partners and the United States.

We seek to do this in other ways as well.

For example, as you’ll read in this newsletter, the ITA’s U.S. and Foreign Commercial Service is helping businesses — like Amarr Garage Doors, which is featured in this month’s issue — sell their products and services in overseas markets.

I also was proud to join Secretary Bryson in announcing the Advisory Committee on Supply Chain Competitiveness to ensure that U.S. companies can ship their products efficiently and compete effectively in the global marketplace.

And, I continue to advocate for U.S. firms abroad. In November, I led a transportation infrastructure trade mission to Qatar and the United Arab Emirates, which have announced plans for hundreds of billions in new projects. I also headed a clean technology trade mission to India, which has set ambitious renewable energy goals to support its rapidly growing economy.

Through it all, those of us at ITA have been proud to give American businesses and workers new opportunities at this critically important time in our nation’s history. And, we are so happy to have partners around world helping us turn our plans into progress. This is important work.

As the President said in Honolulu, “behind all the different languages and some very long names, we all share the same hopes, the same struggles, and the same aspirations. And we’ve learned that we’re more likely to realize our aspirations when we pursue them together.”

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Meeting the Challenge of Supply Chain Infrastructure Competitiveness

December 7, 2011

With the recent announcement of a new advisory committee on supply chain competitiveness, the Department of Commerce is looking to work closely with U.S. industry to identify ways of improving the movement of goods.

Russell Adise is an international trade specialist in the International Trade Administration’s Manufacturing and Services unit.

An important step in assuring the integrity of U.S. supply chain infrastructure was taken on November 3, 2011, when Secretary of Commerce John Bryson and Francisco Sánchez, under secretary of commerce for international trade, announced the establishment of the Advisory Committee on Supply Chain Competitiveness. Through this committee, the secretary of commerce will receive guidance and input from supply-chain firms and associations, stakeholders, community organizations, and others directly affected by the supply chain, as well as experts from academia, from throughout the United States on the development and administration of programs and policies to expand U.S. export growth and foster the competitiveness of U.S. supply chains in the domestic and global economy.

Bayonne, New Jersey port looking over New York City and the Statue of Liberty (photo courtesy istock/Janine Lamontagne

Bayonne, New Jersey port looking over New York City and the Statue of Liberty (photo courtesy istock/Janine Lamontagne)

Crucial Link in Trade

U.S. supply chains are a crucial link between the country’s exporters and the global economy. Every export, and every export-related job, is dependent on the operations and processes that comprise the nation’s supply chains, from material sourcing, to product manufacturing, to consumer delivery. U.S. export competitiveness depends on the smooth, seamless, and rapid movement of goods through the supply chains from beginning to end. Any chokepoint can result in missed exports, lost sales, higher costs, and lost jobs.

The declining state of U.S. infrastructure has become an increasing challenge to exporters. Systemic, long-term infrastructure deficiencies have a dramatic, negative impact on the speed and predictability of the movements of goods around the country. Shippers blame this situation on the lack of a comprehensive national freight infrastructure development and investment policy. They also assert that the United States is not improving its infrastructure fast enough to keep pace with the export demands of 21st century supply chains.

These infrastructure deficiencies pose challenges not only to individual exporters, but also to the success of the National Export Initiative, a federal initiative established by President Barack Obama in 2010 to achieve his goal of doubling U.S. exports by the end of 2014.

Regional Outreach

The advisory committee is a key piece of a larger Department effort to address the challenges of supply chain infrastructure, organized by the International Trade Administration’s Office of Service Industries, a part of ITA’s Manufacturing and Services unit. In 2010, ITA spearheaded the creation of the Competitive Supply Chain Infrastructure Initiative. This brings together federal and private-sector stakeholders to develop policies that will improve the efficiency and connectivity of U.S. supply chain infrastructure. As part of the initiative, then-Secretary of Commerce Gary Locke and Secretary of Transportation Ray LaHood signed a memorandum of understanding in April 2010.  It committed the two agencies to undertake a series of freight stakeholder outreach forums. Since September 2010, five such events have been held throughout the country: in Atlanta, Georgia; Chicago, Illinois; San Diego, California; Kansas City, Missouri; and Seattle, Washington. These have allowed the two federal agencies to widen their knowledge of each region’s top freight infrastructure issues. Additional events are planned for 2012.

How to Apply

U.S. citizens engaged in international trade or supply chain competitiveness issues are eligible to apply to be members of the new Advisory Committee on Supply Chain Competitiveness. Nominations must be received by December 14, 2011. For more information, see the notice published in the Federal Register at 76 FR 68159 or contact Richard Boll of the International Trade Administration, tel. (202) 482-1135; e-mail: richard.boll@trade.gov.

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