Opinion Editorial

Secretary Carlos M. Gutierrez
Opinion Editorial, The Detroit News
“Exports Key to Detroit's Future”

In an increasingly global economy, great American cities like Detroit have a choice: Step up and compete, or retreat from the international marketplace. New data would suggest that Detroit is ready to compete.

Today, the Commerce Department is releasing new metropolitan export data, which shows that for the first half of 2007, Metro Detroit was the fifth-largest export market in the nation with sales totaling $24.3 billion.

Exports continue to be one of the bright spots in our economy. Last year, the United States exported a record $1.6 trillion, and we're on pace this year to shatter that record with exports already up more than 18 percent year-to-date through April. Exports contributed 12 percent to our gross domestic product last year. Now is the time to take actions to boost exports, create jobs and keep our economy strong.

We know our economy is growing more slowly than we would like. The economic stimulus plan passed with bipartisan support in Congress is starting to have an impact and came at the right time.

Already, 104 million stimulus checks totaling $86 billion have been sent to households. We expect the stimulus to help the economy as the year progresses, but there are other steps we can take now to put us on the right path, including making the tax cuts permanent and allowing more environmentally responsible oil exploration in America.

Energy prices are the top pocket book issue for the American people—and our reliance on foreign oil is one of our most serious national security concerns. Allowing more exploration of our own resources will create good American jobs and help lower prices by signaling to the market that we are taking action to expand supply.

But there are alternative energy sources—wind, natural gas, biofuels and clean coal, for example—that must also be a part of meeting our nation's energy needs. Developing these alternative sources gives us a unique opportunity to increase American competitiveness and encourage innovation while addressing climate change. Innovation—including the development of clean and efficient energy technologies—can help foster prosperity both here and around the world.

To grow exports of clean technology, and other American products, we need to expand access to overseas markets for U.S. goods and services. Free trade agreements are the best way to do this.

There are three FTAs pending before Congress with Colombia, Panama and South Korea that would give Michigan's workers and companies increased access to 100 million consumers.

Last year, Michigan's export shipments of merchandise to Korea totaled $627 million. That was an increase of 72 percent since 2003. A free trade agreement with South Korea would level the playing field and provide U.S. automotive exporters a competitive advantage in gaining access to the Korean market.

To compete in the global economy, Detroit—and America—need smart, pro-growth policies that get it right—on energy, the environment and trade. Getting it right demands that we stay open to new ideas for powering our economy, open to innovations that will help us meet the challenges of climate change and open to new markets that will grow our exports and our economy.