Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Remarks at the Council on Competitiveness
Washington, D.C.

Thank you. I appreciate the invitation to close out your annual meeting. Last year at your 20th anniversary celebration you looked backward over your history. Today, I understand the focus is on the future.

That’s what I’d like to do today as well—look to America’s future competitiveness and what it will take to lead in the 21st century.

To truly compete in today’s environment, I believe the U.S. must fully engage in the global economy.

Every major country around the world is competing. Every country is innovating. Worldwide growth is unprecedented. China, India, Russia … everyone is in the game. The way to stay competitive in the 21st century is to compete with confidence.

I believe the key to our competitiveness is openness:

• Opening global markets for American products and services;
• Remaining open to new people who enrich our culture and our economy; and
• Being open to new ideas that will mold and shape our future.

Unfortunately, we are at a time when people are questioning our openness. Questioning how much we should engage globally. Now is not the time to roll back America’s openness and adopt misplaced nationalism.

I believe we are at our absolute best when we are leading, international and engaged. Under this President, that has been our policy—and it has worked.

Our economy is strong and resilient. Opening global markets has been a central piece of this Administration’s economic agenda. New markets create opportunities for American workers and businesses. And we have seized these opportunities.

Last year our exports were a record $1.4 trillion, and they are growing this year at a double-digit rate for the second year in a row. We must maintain that momentum.

Opening global markets is essential to maintaining our competitiveness. That’s why we have Free Trade Agreements with 14 countries, 11 of which were implemented under President Bush, and six were implemented just last year.

Half of our FTAs are with countries in our own Hemisphere. We believe that trade creates prosperity and stability. When our neighbors are prosperous and stable—so are we.

There are four more FTAs with Peru, Colombia, Panama and South Korea, pending before Congress. In recent months, I have traveled to the three Latin countries, bringing bipartisan Congressional delegations twice to Colombia.

In particular, I want to highlight Colombia, a true success story. I have never seen such a turnaround in a country. Plan Colombia, started under President Clinton and continued under President Bush, was designed to help Colombia reduce violence, improve their economy and above all to give their people hope.

We have contributed $5.5 billion in Plan Colombia and it has worked.

• Violence is down.
• Drug production has slowed.
• Poverty has been reduced.
• The economy is growing rapidly.

Colombia is one of our staunchest allies in the region and they are partners in the global war on terror.

We can’t turn our back on these important allies—and we must not turn our backs on opportunities to increase our exports.

America’s businesses, workers and manufacturers deserve access to millions of new consumers so they can compete more effectively in the global marketplace. We urge Congress to approve these agreements as soon as possible.

Let me also mention the Doha round of global trade talks. Doha is the single biggest opportunity in the world to drive growth. That’s why the President has remained committed to Doha, and we continue to push to get an agreement.

A successful Doha round has the potential to lift 500 million people out of poverty and add $200 billion annually to developing economies. It is a once in a generation opportunity and we must not let it pass us by.

In addition to opening markets, an important part of our future lies in ensuring we have the workforce our economy will need. As always, it is all about people.

That means we must do a better job of educating our own citizens. We are making great progress through No Child Left Behind and the America Competes Act. But we must also recognize that without immigration we will not be able to stay ahead in the global economy.

If there is one thing we have learned in 230 years is that welcoming immigrants, both high and low-skilled, with the energy, drive and enthusiasm to participate in our society, has made us stronger.

A confident nation is a welcoming nation. We need not be threatened by those who want to join us as they seek the American dream.

Every developed country around the world is going to have to embrace immigration in order to prosper. Their demographics will demand it.

We should have the competitive advantage over them. We have experience with immigration and we have seen the benefits of immigration. This could be a competitive advantage for the next century.

Immigrants add creativity, energy and vitality to our economy. Comprehensive immigration reform is essential for our continued economic growth, and it remains a priority of this Administration.

The great Irish tenor, Ronan Tynan said, “The thing I love about America is that ... they encourage you, and they rejoice in your success. That's a great virtue.”

Being competitive means empowering people, embracing new ideas and encouraging success.

The biggest new idea of our generation—the Internet—has changed the way we work, shop and communicate. Until now the Internet has become an important engine of commerce without the burden of taxation.

Secretary Paulson and I have recently joined the call for a permanent extension of the Internet Tax Moratorium.

Keeping the Internet tax free will help ensure that consumers have affordable access to the Internet, and that government is encouraging and sustaining an environment for innovation.

In fact, any tax increase will hurt our ability to grow, to compete and to attract investors. We don’t want any new taxes. We don’t need any new taxes. And quite frankly, we can’t afford new taxes of any kind.

President Bush has proven once again that American businesses and consumers do a better job of allocating capital than the federal government.

The government’s role is not to direct the economy but to create the environment so that the American people have the incentive to drive our economy forward. That environment should encourage entrepreneurship, innovation and investment by the private sector.

The government has long collaborated with the private sector and academia, and public-private partnerships have become increasingly critical in today’s economy.

Today, I am proud to say that we aren’t just talking about such partnerships—we are actively seeking them.

The Commerce Department is proud to work with the Council on Competitiveness to advance strategies that will keep America competitive.

Today, I am announcing a $265,000 EDA investment in the Council to promote and strengthen regional leadership through the 21st Century Leadership Initiative.

The Initiative will spark innovation-driven economic development so that American companies and workers can expand trade opportunities and capture market-share.

The Council will use the EDA investment to develop a research report and a feasibility plan for the development of a new National Center on Regional Leadership.

We are excited to partner with you in this endeavor and thank you for your commitment to helping America compete now and in the future.

At the end of the day we are a nation that puts a premium on being free. Freedom is our biggest competitive advantage. We are free to think; to invent; to explore; to invest; to choose; to succeed; to fail; to dream. . . . Freedom is the reason that America has led the world in invention, discovery and innovation.

If we continue to have the confidence to be free and open, there is no question we will continue to be the greatest country in the world.

With the hard work of America’s entrepreneurs and workers, the ideas of groups like the Council, the innovation and genius of our private sector, and an environment of freedom and openness promoted and encouraged by our government—the 21st century will truly be the American century. Thank you.