Opinion Editorial

Secretary of Commerce Carlos M. Gutierrez
Opinion Editorial, San Diego Union Tribune
”Trade and San Diego’s Economy”

Long associated with the sun, sand and surf, San Diego is now adding “exporting powerhouse” to its repertoire.

As a gateway for international commerce, millions of goods and products sail through San Diego's harbor each day, making San Diego one of America's top 20 exporting regions. While our economy is facing strong headwinds, more than ever before exports and international trade are providing much-needed vitality to keep our economy strong.

With impressive trade flows from Asia and Latin America, this international port city is leading in defense and high-technology industries and is a vital link to America's global trade network. Today, I am in San Diego to highlight the Bush administration's more than $150 billion bipartisan economic stimulus plan to boost our economy in the short term and discuss how keeping America open to trade will help grow and strengthen our economy over the long run.

The Economic Stimulus Act will provide an immediate boost to our economy by giving Americans back some of their hard-earned money. Additionally, it offers temporary tax incentives for businesses to invest in their companies and is expected to create more than half a million jobs. Hundreds of thousands of San Diegans will receive stimulus checks, helping families, workers and businesses with needed tax relief.

But there's another stimulus that's been quietly helping keep our economy growing—exports. Exports—at 12 percent last year—now account for a larger part of our economy than at any time in history. California long ago made the decision to aggressively engage in the global economy, and that has paid off. To keep America's economy sound and growing we must foster a pro-growth environment that encourages innovation, job creation and entrepreneurship. Opening markets for American exports is essential to that environment.

Trade is a leading source of California's growth with more than 1 million jobs supported by trade and exports, and merchandise exports from California up an amazing 43 percent over the past four years to $134 billion. Nationally, the United States exported a record $1.6 trillion in 2007, up 12.6 percent over 2006. Now more than ever, we should be opening more markets for U.S. exports. Yet rather than open more markets, some are talking about taking a “timeout” on trade, and have stalled on moving forward with pending agreements with Colombia, Panama and South Korea.

Agreements such as the North American Free Trade Agreement have been critical for growth. California exported globally to 222 foreign destinations in 2007, with NAFTA partner Mexico being the largest market for California's goods at $18.3 billion, followed by Canada at $16.1 billion.

Companies such as Qualcomm, headquartered in San Diego, have customers spread from Brazil to Dubai. Expanding worldwide market access ensures that goods, from computers and electronics to machinery and transportation equipment made right here in the Golden State, are finding their way into the offices, homes and stores of consumers around the globe. Tens of thousands of jobs in San Diego alone depend on exports.

Among the countries with pending agreements, Colombia stands out. Colombia is a staunch American ally that has made a tremendous turnaround over the past decade, moving from a nearly failed state to a thriving one. The trade agreement with Colombia increases regional stability and secures the gains the Colombian people and their democratically elected government have achieved. Since 2002, kidnappings are down by 83 percent, terror attacks by 76 percent and homicides by 40 percent, while cocaine production has fallen by a third.

For more than 16 years Congress has given more than 90 percent of Colombian imports duty-free access to the American market, while American exports have faced more than $1 billion in tariffs since the agreement was signed. The agreement makes trade with Colombia a two-way street, benefiting California's businesses, farmers and workers, which exported $320 million to Colombia last year.

Like Colombia, South Korea borders a country with a very different vision than our own. Last month's decision to reopen the Korean market to all U.S. beef paved the way forward on this vital trade agreement. California exported $7.4 billion in goods to Korea in 2007; this agreement will help grow those exports and diversify America's engagement in Asia.

Right now, a tremendous amount is at stake, and the agreement with Colombia is a bellwether for the future. We've helped create this increasingly competitive and integrated world–now is the time to press forward. Those who care about our nation's security and prosperity, and in the spread of social justice and stability internationally, must support this agreement with Colombia.

San Diego has helped stimulate export growth, and this month's rebates will help stimulate our economy. For a long-term stimulus, San Diegans, Californians and all Americans need more access to global markets. Let's start by leveling the playing field in Colombia.