Opinion Editorial

Secretary of Commerce Carlos M. Gutierrez
Opinion Editorial, Austin American Statesman
”Stimulate America’s Economy Through Trade”

Beginning this month, 130 million Americans will receive economic stimulus checks, many postmarked from Austin. This capital city is just one of four nationwide locations distributing funds to the American people as part of President Bush's more than $150 billion bipartisan economic stimulus plan. Today, I am in Austin to highlight the economic stimulus and discuss long-term policies that will help strengthen our economy.

The Economic Stimulus Act will provide an immediate boost to our economy by giving Americans back some of their hard-earned money. It also offers temporary tax incentives for businesses to invest in their companies and create jobs. The act is expected to help create more than half a million jobs by the end of the year.

Open markets to create growth
A sound and growing American economy requires a pro-growth environment that encourages, innovation, job creation and entrepreneurship. Opening markets for American exports is a significant part of that long-term vision. In 2007, exports accounted for a larger part of our economy than any time in history at 12.6 percent. No state has seen the benefits of open markets more than the Lone Star State.

Texas is America's No. 1 exporter, shipping a record $168.2 billion worth of merchandise around the world last year. From 2003 to 2007, the value of Texas exports increased by $69.3 billion, the largest dollar gain among the states. Since the North American Free Trade Agreement took effect in 1994, Texas exports to Mexico and Canada have jumped by 216 percent.

Central Texas helps lead Texas' growth. The Austin-Round Rock area is one of the nation's top 30 exporting metro areas, shipping more than $8.2 billion worth of merchandise last year. And, of the top five destinations for Central Texas exports, two are free trade agreement (FTA) countries, Mexico and Canada. Austin's No. 1 export destination was South Korea, one of three countries with which we have pending FTAs.

FTAs are one of the best tools we have to reduce export barriers and create more export opportunities for Texas products—from chemicals and machinery to computers and electronics—to find their way into the businesses and living rooms of foreign consumers.

Export opportunities aren't just for large companies like Dell, AMD or Texas Instruments. Increasingly, small and medium-sized enterprises are jumping into global markets. Austin-based ATDF, which provides access to world-class processing and prototyping capabilities for semiconductor chips, has begun exporting to South Korea. The Korean FTA would give ATDF and other Austin companies more opportunities in the Korean market, creating jobs and boosting the local economy.

More trade pacts pending
The Colombia FTA is one of the most important economic and national security decisions facing our nation. Ten years ago, Colombia was on the verge of becoming a failed state. Held hostage for too long by narco-terrorists, Marxist guerrillas and violent drug cartels, the Colombian people decided to fight back and reclaim their country. President Clinton and then-Speaker Dennis Hastert wisely helped Colombia by investing more than $5.5 billion in the bipartisan initiative, Plan Colombia, which has helped dramatically reduce violence, grow the economy and make strides in health care and education.

Economically, the FTA provides an advantage to our exporters by creating two-way free trade. Currently, Colombian exports enter our markets virtually duty-free, while American exports to Colombia have faced more than $1 billion in tariffs since the signing of the FTA 534 days ago. Now is the time to further Colombia's progress and support stability in the Western Hemisphere while creating a level playing field for U.S. exporters.

Like Colombia, South Korea borders a country with a very different vision than our own. Texas cattle ranchers and beef producers would benefit from an agreement with South Korea. The recent decision to reopen the Korean market to all U.S. beef paved the way forward on this vital FTA. In 2003, the last full year before the ban on U.S. beef was implemented, America's cattle industry exported $815 million in beef to Korea. We expect even more exports of U.S. beef now that the ban has been lifted.

Texas' businesses, workers, farmers and ranchers deserve every opportunity they can to grow, prosper and succeed in the global economy. While the stimulus checks being mailed from Austin will help get our economy back on track, in the long run, we must create an environment for businesses to grow and create jobs. That environment must include expanding global markets for U.S. exports.

For information on pending free trade agreements, visit www.tradeagreements.gov.