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

February 7, 2012

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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. 

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, International Trade Update, Manufacturing, National Export Initiative, Trade Missions, Travel & Tourism | 1 Comment »

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Creating Jobs: “Plane” and Simple

February 7, 2012

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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 Initiative.  ITA’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.

Posted in Competitiveness, Exporting, International Trade Administration, Manufacturing, National Export Initiative, Supply Chain | Tagged , | 1 Comment »

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Turning an International City into an International Exporter

February 2, 2012

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

Exports, exports, exports.

(L-R) D.C. Mayor Vincent Gray, DSLBD Director Harold Pettigrew, SBA Deputy Associate Administrator Luz Hopwell, and Under Secretary Francisco Sánchez at the ExportDC announcement.

(L-R) DSLBD Director Harold Pettigrew, D.C. Mayor Vincent Gray, SBA Deputy Associate Administrator Luz Hopwell, and Under Secretary Francisco Sánchez at the ExportDC announcement.

You hear a lot about the benefits of exports these days. Whether it’s exporting services like travel and tourism, or manufactured goods like cars or yarn, businesses around the country are supporting their communities’ economic recovery through market expansion.

Exports have also become part of the national dialogue.  President Obama touched on the National Export Initiative (NEI) in his recent State of the Union address. Commerce Secretary John Bryson highlighted the potential of international markets when laying out his vision for the Department in December.

Personally, I have traveled across the country talking about the importance of selling U.S. products overseas, and showcasing export success stories to inspire new ones.  I’ve seen a lot of great things happening at the local level.  It’s where progress often begins.    

That’s why, yesterday, I was proud to participate in DC Mayor Vincent Gray‘s announcement of the formation of ExportDC.  According to the mission statement, the effort was created “to increase the number of DC small businesses that export, grow the dollar value of exports from District businesses, and coordinate trade missions for qualified District-based businesses.”

Why is this important? Consider the following:

  • As Mayor Gray mentioned: data show firms that export grow faster, create more jobs and pay wages 13-18 percent higher than firms that don’t;
  • According to the International Monetary Fund, 85 percent of the world’s economic growth over the next five years will take place abroad; and
  • 9.2 million American jobs were supported by U.S. exports in 2010.   

With the obvious benefits of servicing foreign markets, it’s unfortunate that only one percent of American businesses export, and 58 percent of those only export to one market.  That is why President Obama launched the NEI two years ago, with the goal of doubling U.S. exports by the end of 2014.  And the International Trade Administration (ITA) has been working at home and abroad to make sure every U.S. business has access to the resources they need to enter and thrive in international markets.

ITA’s U.S. Export Assistance Centers with 108 offices nationwide, have partnered with local communities to provide more complete and comprehensive support to businesses looking to start or expand their export markets.

Mayor Gray’s ExportDC is just one of the latest cooperative efforts between federal and local governments. The Northern Virginia USEAC will collaborate with Export DC on trade missions, networking sessions and other programming that will help DC businesses find new overseas buyers.

Together, ExportDC, ITA and other outstanding federal and local partners will help DC businesses sell their products and services abroad. This is important because when local businesses prosper, communities prosper. When communities prosper, cities prosper. And when cities prosper, our entire nation prospers.

Posted in Exporting, Interagency, National Export Initiative, Small Business | Tagged | Leave a Comment »

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Exporting at the Speed of Light

January 23, 2012
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Doug Barry is an International Trade Specialist in the Trade Information Center, part of the U.S. and Foreign Commercial Service

Two years ago he was laid off from his job at the height of the global financial crisis.  Eighteen months ago he started his own company with one employee:  himself.  Today he has 9 employees and is shipping wireless routers he makes to customers in almost 80 countries.

How’d he do it?

William Haynes owns Sabai Technology based in Simpsonville, South Carolina.

William Haynes owns Sabai Technology based in Simpsonville, South Carolina.

William Haynes owns Sabai Technology based in Simpsonville, South Carolina.  His success is due to a good product, timing, execution and some luck.  He also had crucial help from his friends at FedEx and the U.S. Department of Commerce.

He started selling routers to customers in the U.S.  Then he discovered a company that provided VPN service and who had customers overseas that wanted access to the Internet from devices throughout their household.  The company, Strong VPN, asked Haynes to make routers for them.  The first sale was to China, and orders soon took off to where international sales now account for 80 percent of revenues.

Haynes is not the only one making wireless routers, but he says he manages to compete with much larger technology-makers because of niche marketing ability and excellent customer service. “What you’ve got to do is make sure that front to back, from the time they place an order to the time customers get it in their hands and even after for technical support, that it’s seamless. That it’s well-communicated; that they have a certainty that when they’ve given you their money, they’re going to get their product; that they’re able to track it through the process.  To me, that’s the most important thing for successful exporting.”

Shipping to the middle of nowhere

To generate satisfied customers Haynes turned to FedEx.  “One of my favorite shipping stories  is when we shipped to the Faroe Islands.  FedEx handled that and it was crazy.  It was there, I think, in three or four days.  And if you’re not familiar with where the Faroe Islands are, it’s halfway between Iceland and Scotland out in the middle of nowhere.”

In another example, Haynes recalls: “We had a customer who ordered at 2:34 in the afternoon on a Monday afternoon to Sao Paulo, Brazil.  Well, 10 a.m. on Wednesday morning – less than 48 hours later, they’re contacting us letting us know they’ve gotten the router, it’s installed, it’s up – ‘thank you so much, how wonderful this is.’  We couldn’t do that with anyone but FedEx.”

Business really took off early in 2011 due to an unusual chain of events.  Haynes got a few orders from people in Egypt who understood the wireless routers could be used to send and receive information that was otherwise blocked by government filters. Said Haynes: “During the Arab Spring the technology allowed people to go to CNN and get news and information.  It allowed them to send emails knowing that from the time it leaves their home to the time it hits the U.S. or the country they’re connected to, it’s totally encrypted.” 

To build Haynes’s sales more rapidly, a FedEx sales representative brought in the U.S. Commercial Service, a branch of the Commerce Department that helps U.S. companies find overseas buyers and plays a major role in the Obama administration’s National Export Initiative, which seeks to double U.S. exports by the end of 2014.  The typical U.S. manufacturing exporter sells to buyers in fewer than five overseas markets, so already Sabai Technology was atypical.  But Haynes knew that in addition to selling and sending one box at a time, he needed to develop distributors in key countries so that his sales volume increased at a more rapid rate.

The Commercial Service has Export Assistance Centers in more than 100 U.S. cities and market specialists in U.S. embassies in over 70 countries.  FedEx asked the Export Assistance Center in South Carolina to visit Haynes.  “It would have been years before I discovered these folks.  They came to visit me, to discuss the needs of Sabai Technology,” he said.

The visit prompted Haynes to use U.S. government export insurance and to advertise in a Commercial Service publication Commercial News USA, which goes to foreign buyers worldwide.  “Thanks to the magazine we have companies in countries like Zambia wanting to buy and distribute our product.”

Looks like Zambia will soon be Sabai Technology’s 81st export market, leaving only 45 more countries remaining to sell to by this self-effacing, self-described “babe in the woods” of exporting.  There’s little doubt that he has the determination and now the help to get there.

“I’m just a babe in this stuff, and to have someone hold my hand a bit and walk me through it – it’s going to really accelerate the growth of our international business.”

Posted in Commercial Service, Exporting, National Export Initiative, Small Business, Success Story | 2 Comments »

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Taking Advantage of Opportunities in Colombia

December 29, 2011

Walter Bastian is the Deputy Assistant Secretary of Commerce for the Western Hemisphere in ITA’s Market Access and Compliance unit.

I recently participated in a forum focusing on how the new U.S.-Colombia Trade Promotion Agreement (Agreement), signed into law by President Obama in October, provides opportunities for expanded trade between our two countries.   Representatives from more than 100 U.S. and Colombian businesses attended the event in Bogotá organized by the Colombian American Chamber of Commerce. 

Colombia is the 3rd largest economy in Central and South America, and one of our most important strategic partners in the region. I am impressed by Colombia’s level of economic liberalization and diversification of exports, and its sustained investment in information technologies. Furthermore, the country has greatly improved its corporate governance standards, and the United States and Colombia have largely complementary economies.

U.S. companies should prepare to take full advantage of the U.S.-Colombia Trade Promotion Agreement. When implemented, the Agreement will eliminate barriers to billions of dollars of U.S. exports, and increase U.S. market access for goods and Colombia’s $166 billion services market. Nearly 75 percent of duties on industrial and agriculture goods from the United States will be terminated immediately, and almost all other duties phased out during the next 5-10 years.

The Agreement is expected to increase U.S. exports by at least $1 billion annually and U.S. Gross Domestic Product by more than $2.5 billion. Key industry sector opportunities include information technology products, agriculture and construction equipment, infrastructure and machinery, chemicals, remanufactured and medical equipment, electrical power generation and distribution equipment, and aircraft and parts. 

The Agreement also advances President Obama’s National Export Initiative which aims to double overall U.S. exports by the end of 2014, creating new opportunities for U.S. businesses, workers, farmers and ranchers.  

We want to make sure that we support U.S. companies’ competitive position in Colombia and facilitate two-way trade. Colombia is doing the right things to get their house in order—they have significantly improved their business climate and are aggressively working to make it even better.

With a population of 48 million consumers in an economy with a growing GDP, Colombia is an attractive market for the United States. The International Monetary Fund (IMF) is expected to peg its Colombian 2011 economic growth forecast to close to 5 percent. According to World Bank’s Doing Business Report, Colombia is the region’s leading reformer, ranking 37th among 183 economies—and remains among the world’s 10 most active reformers.  

For assistance in doing business in Colombia, U.S. businesses can contact their local U.S. Commercial (CS) Export Assistance Center at www.export.gov, or visit the Commercial Service at the U.S. Embassy in Bogotá. 

 

Posted in Commercial Service, Exporting, International Trade Administration, Market Access and Compliance, National Export Initiative | Tagged | 2 Comments »

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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.

Posted in Competitiveness, Exporting, International Trade Administration, Manufacturing, Manufacturing Council, National Export Initiative | Tagged , | 3 Comments »

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October 2011 Trade Facts and Figures – Autos and Europe

December 9, 2011

Cory Churches is a Communication and Outreach Specialist in the Office of Public Affairs at the International Trade Administration

Today the Commerce Department announced the figures for international trade in goods and services for the month of October. Year-to-date, exports have grown nearly 16 percent. One area that has had particularly strong growth in exports is the auto sector. Exports of passenger cars in the first ten months of 2011 is nearly 25 percent over the same period last year. Those vehicles are finding homes in driveways and garages in Canada, Germany, Saudi Arabia, Mexico and the UK.

As Secretary Bryson said this morning,

Today’s numbers clearly show the positive impact of exports on the American economy. So far this year we have seen six months of record-breaking growth of exports. Our initiatives are working for the American people. Since the President implemented the National Export Initiative in January 2010 monthly exports have increased 25 percent.

Exports continue to be a bright spot in our still recovering economy.

Europe and the EU have been in the news constantly and it’s worth noting that in 2010, exports to the 27 members of the European Union still represented nearly 19 percent of U.S. merchandise exports. The European Union is an important market for high value U.S. goods, with the largest U.S. export categories to the EU-27 market being chemicals, transportation equipment, computer and electronic products and machinery.

Demand in the Euro-zone countries has been the slowest to recover continuing into 2011. Through the first ten months of 2011, U.S. merchandise exports to these countries increased 13.4 percent. European Union members outside the Euro-zone have grown at a more rapid 15.6 percent. Outside the Euro-zone, the United Kingdom has led growth in  2011 with U.S. merchandise exports increasing 15.1 percent or $6.1 billion in the first ten months of 2011 (compared to the same period of 2010).

You can find more facts and figures about our trade with the EU and Europe in our Export Fact Sheet and about today’s trade figure release in the Census Bureau’s full report.

Posted in Export Fact Sheet, National Export Initiative, Statistics | Tagged , | 6 Comments »

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APEC 2011: Twenty-One Markets, Unlimited Opportunities!

November 22, 2011

Stephen L. Green is a Commercial Officer on domestic assignment with the U.S. Export Assistance Center in Honolulu and has served with the International Trade Administration since 2000.

The United States just wrapped up their year of hosting  the Asia-Pacific Economic Cooperation(APEC) Summit and I was fortunate enough to be on hand in Hawaii for the finale. So, what’s left after the  Summit?  That is the burning question on the minds of all Hawaiian people as the largest event in the State’s history comes to a close.  Over the past week, dignitaries, officials, and business executives from APEC’s 21 member economies descended on Honolulu to discuss the path forward in expanding trade, investment, and economic growth in order to create employment and raise living standards across the region.  And, this was not just any group.  Combined, they represent 40 percent of the world’s population, 56 percent of global gross domestic product, and approximately 50 percent of international trade.  No, not just any group.  Rather, the world’s most powerful coalition of economies that have agreed upon promoting open trade and investment across a region spanning thousands of miles on both sides of the Pacific Ocean.  The United States, China, Japan, Russia, Canada, Mexico and 15 other major economies, they were all here in Honolulu last week.  What’s left after APEC?  I have plenty of answers.

Secretary Bryson presents a Certificate of Appreciation for Achievement in Trade to Lieutenant Governor Brian Schatz recognizing the State’s leadership in promoting the Hawaiian Islands as a destination for foreign travelers.

Secretary Bryson presents a Certificate of Appreciation for Achievement in Trade to Lieutenant Governor Brian Schatz recognizing the State’s leadership in promoting the Hawaiian Islands as a destination for foreign travelers.

For starters, Hawaii-based companies met new international business partners.  SKAI Ventures, one of our best clients, is now in deep discussions with a number of potential distributors met during APEC.  And, deals were done.  Sopogy, Inc., another one of our top clients, signed a memorandum of understanding with Sichuan Dongjia Investment Company outlining how this new partner will market Sopogy’s world-class micro concentrated solar power technology in China.  In addition to the business deals happening at APEC, the U.S. Department of Commerce’s senior leadership honored local businesses and brought the message of expanded exports to the local economy.  Recently-confirmed Secretary of Commerce John Bryson returned to his boyhood stomping grounds of Honolulu where he attended 7th grade at Kaimuki Middle School, this time for his first bilateral meetings with APEC counterparts on a range of trade and investment issues.  Secretary Bryson also presented two U.S. Department of Commerce Certificates of Appreciation for Achievement in Trade during his visit; one commending the Hawaii Pacific Export Council for its role in developing export opportunities for Hawaii-based companies and a second to Lieutenant Governor Brian Schatz recognizing the State’s leadership in achieving President Obama’s National Export Initiativegoals by promoting tourism in the Hawaiian Islands as a service export. 

Secretary Bryson presents a Certificate of Appreciation for Achievement in Trade to Hawaii Pacific Export Council (HPEC) Chairman Steve Craven commending HPEC’s role in developing export opportunities for Hawaii-based companies.

Secretary Bryson (center) presents a Certificate of Appreciation for Achievement in Trade to Hawaii Pacific Export Council (HPEC) Chairman Steve Craven commending HPEC’s role in developing export opportunities for Hawaii-based companies.

Our Under Secretary for International Trade Francisco Sánchez and Assistant Secretary for Market Access and Compliance Michael Camuñez with their Indonesian counterparts launched the first-ever U.S.-Indonesian Commercial Dialogue that will pay close attention to harmonizing standards in the energy sector.  And, Japan announced that it intends to join the 21st Century Trans-Pacific Partnership agreement that promises unprecedented opportunities for U.S. exporters doing business in the Asia-Pacific region.

The State of Hawaii has always been a surf-and-sand tropical paradise.  That won’t change after APEC but what APEC surely did is transform the Hawaiian Islands into an international commercial hub, where doing business beyond the reef is an everyday part of life.  Our office, the Hawaii U.S. Export Assistance Center, stands ready to make sure Hawaii companies take advantage of this new frontier.

Posted in APEC, Exporting, National Export Initiative, Services, Travel & Tourism | Tagged , | 3 Comments »

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Third Time is a Charm: Our Strong Relationship with India

November 8, 2011

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By Francisco J. Sánchez, Under Secretary of Commerce for International Trade.

I’ve arrived in New Delhi, India, with a Clean Technologies trade mission of seven U.S. companies eager to find partners in key sectors such as renewable energy, energy efficiency, and environmental technologies. After New Delhi, we will travel to Hyderabad, a high-technology hub in the south; and then the companies will go on to Ahmedabad – an important “next tier” city in the western Indian state of Gujarat. As one of the fastest growing economies in the world, India offers enormous potential to U.S companies. It has critical infrastructure needs in energy, transportation, environment, and supply chain, to name a few – all areas where U.S. companies can offer cutting-edge technologies. I strongly believe that India’s needs are our companies’ potential opportunities.

This is my first trade mission to India, but my third visit as Under Secretary. A year ago, I came here with President Obama, and two months before that, I came to launch our GEMS initiative – Growth in Emerging Metropolitan Sectors.

Under Secretary Francisco Sanchez presents the Peace through Commerce Award to Ms. Kiran Pasricha, former head of the Washington office of the Confederation of Indian Industry

Under Secretary Francisco Sanchez presents the Peace through Commerce Award to Ms. Kiran Pasricha, former head of the Washington office of the Confederation of Indian Industry

Why the attention to India? The Administration accords great importance to our relationship with India. President Obama said in November 2010 before the Indian Parliament that the U.S.-India relationship “will be one of the defining partnerships of the 21st century.” This trade mission advances President Obama’s National Export Initiative, which aims to double U.S. exports by the end of 2014, supporting economic and job growth. This should be an achievable goal with India – we already doubled exports between 2005 and 2010!

I am continually impressed by the vibrancy and entrepreneurial spirit of India’s private sector. In many ways our two business communities are ahead of the governments in expanding the relationship. That’s why I’m especially pleased that I was able to give a Peace through Commerce Award yesterday to a key private sector partner – and friend – Ms. Kiran Pasricha, former head of the Washington office of the Confederation of Indian Industry (CII). The Peace through Commerce award was actually started by President Thomas Jefferson, but it had fallen into disuse. I brought it back because I wanted to recognize our partners abroad. Kiran has been a wonderful partner who has had the foresight to understand how trade can contribute to the broader relationship, and help bring prosperity to both our nations.

Today (Tuesday) India’s Commerce Secretary Rahul Khullar and I co-chaired a public-private session of the U.S.-India Commercial Dialogue. Through this Dialogue, the two governments and the two private sectors regularly work together to find solutions to nuts-and-bolts commercial issues. In today’s session, we talked about what conditions are necessary to build a modern, flourishing cold chain. A cold chain is the system for transportation of perishable products such as food, chemicals, and drugs along a supply chain, together with the logistical planning to ensure the integrity of such shipments. I very much appreciated the participation on the U.S. side of the Global Cold Chain Alliance, the American Chamber of Commerce, and the U.S.-India Business Council; and on the Indian side, of CII. Secretary Khullar and I will be working with our business communities to set an agenda on a range of different topics for the coming year.

In 20 years, 68 cities in India are expected to have populations surpassing 1 million. And total annual income of households in urban areas is expected to reach $4 trillion in 2030. This is a huge market for both Indian and American companies. This is why India was the place where we started the GEMS initiative. I want to make sure we continue that effort. So yesterday I met with a number of officials from some of the states surrounding New Delhi. After our stop in Hyderabad, where I will inaugurate SOLARCON, a preeminent trade fair for solar technology, the companies will go on to Ahmedabad.

At the same time, India poses a number of serious market access barriers for our companies. In my talks with government officials this week, I have urged them to continue to become more open to the investments and the innovations of foreign companies. In this way, India will improve its chances of meeting the needs of its people – and together we can prove that trade and investment will be win-win for us both.

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, National Export Initiative, Trade Missions | Tagged , , , , | 7 Comments »

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Seizing Opportunities Across the Globe: A Message from Under Secretary Francisco Sánchez

November 1, 2011

By Francisco J. Sánchez, Under Secretary of Commerce for International Trade.

Francisco J. Sánchez, Under Secretary of Commerce for International Trade

Francisco J. Sánchez, Under Secretary of Commerce for International Trade

This month brought good news for the U.S. economy.

President Obama signed legislation approving the free trade agreements with Korea, Panama, and Colombia. These measures, when implemented, will support tens of thousands of American jobs, add billions to our gross domestic product and help provide a level playing field for U.S. firms in three significant international markets.

All of us at the International Trade Administration are committed to helping businesses seize these opportunities—in these three markets and across the globe. That’s why I’ve been engaged with various international representatives from the public and private sectors to strengthen our commercial relationships.

I want to highlight two significant trips:

In early October, I traveled to the Dominican Republic for the fifth Americas Competitiveness Forum. More than 1,000 attendees gathered from across the Western Hemisphere to exchange ideas and experiences. The region is vital to our economy; it’s the destination of more than 40 percent of U.S. exports.

Participants gathered to discuss ways to build on this success. One result of these talks: the Santo Domingo Consensus, a set of policy objectives designed to strengthen economic integration. You can read more about the Santo Domingo Consensus in this issue, but I can tell you that participants left the conference energized, and considering newer and greater possibilities.

From there, I went on to China, where I led a trade mission delegation of 19 U.S. biotechnology companies to both Beijing and Hong Kong. There is enormous potential in the market; China’s biotech sector is growing roughly 25 percent a year. Its market is huge in terms of sales and clinical trial opportunities, as well as potential investment that presents opportunities for U.S. companies here at home.

Case in point: DiaCarta, LLC, a California-based company that was a part of our delegation. During the mission, the firm signed a $2 million sales agreement to sell its cervical cancer testing products in China. Representatives of DiaCarta say that this deal will allow them to hire American workers—in short, their exports are generating economic activity. That is a trend we’re seeing all over.

Take Hong Kong, where I was privileged to present the Peace through Commerce Award—which was created by Thomas Jefferson—to Fred Lam, executive director of the Hong Kong Trade Development Council. Lam spearheads the Pacific Bridge Initiative (PBI), the first set of policy objectives developed by a foreign government to promote President Obama’s National Export Initiative on a bilateral basis.

Since its inception, the PBI has helped triple the number of export transactions to Asia by new-to-market U.S. firms. It’s a significant achievement, which is why I presented Mr. Lam with the award, and am looking forward to our continued partnership in the years ahead.

In total, my travels through different regions of the world were centered on the goals of increasing U.S. exports to support American jobs and businesses. I can tell you from firsthand experience abroad that the words “Made in America” mean something special. Products stamped with that phrase represent quality and value, which is why they are in great demand all over the world.

Let’s work together to turn these possibilities into progress for the American economy.

Until next time,
Francisco J. Sánchez

Posted in Competitiveness, Exporting, International Trade Administration, International Trade Update, Manufacturing, National Export Initiative, Trade Missions, Trade Shows and Trade Events | 1 Comment »

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