Secretary's Speech

Commerce Secretary Carlos Gutierrez Remarks to the U.S. - Spain Council
Tampa, Florida

Thank you, Senator Mel Martinez. Thank you to the U.S.-Spain Council for inviting me, and to your members for being here.

Your work over the next few days is important. Business leaders like you are often among our best ambassadors in promoting free trade and strengthening ties between countries.

I appreciate my fellow government leaders who are here as well--both from the United States and Spain.

In particular, I want to recognize the good work of Eduardo Aguirre, our U.S. Ambassador to Spain. Ambassador Aguirre is an energetic advocate for greater collaboration between our countries, and we support his efforts.

Now, before I talk about U.S.-Spain relations today, I want to start with two issues of importance to all of us: Updates on Iraq and on U.S. immigration reform.

Iraq's Economy
The President's trip to Iraq earlier this week highlighted the tremendous strides made by the Iraqi people.

While the road ahead is challenging, the new Iraqi government is a cause for optimism. We have already made progress.

By every measure, the economy in Iraq has significantly improved since the removal of Saddam Hussein in 2003.

• Unemployment is down
• Iraq now has a stable exchange rate
• More companies are registered to do business in Iraq
• More companies are listed on an independent stock exchange
• And Internet and cell phone usage in Iraq is skyrocketing

Prime Minister Maliki is committed to national revitalization, and he has asked for the engagement of the nations of the region and the world.

The United States, under the leadership of President Bush, will continue to help build democracy and prosperity in Iraq.

Immigration Reform
On the U.S. domestic front, President Bush has proposed bold, comprehensive immigration reform:

• Priority number one in the President's proposal is securing our borders
• Second, the President's proposal includes creating a Temporary Worker Program--that would allow foreign workers to enter our country in a lawful way for a limited time
• Third, employers need to be held accountable for the workers they hire by making it easier for them to verify an employee's legal status
• Fourth, we must confront the reality that there are 12 million undocumented people in the United States , by providing an earned path to citizenship
• Fifth, we must honor our great tradition of the melting pot. We must help newcomers assimilate into our society and embrace our common identity as Americans

Comprehensive immigration reform is important, and I appreciate American business leaders who are making their voices heard on this issue.

U.S. - Spain Relationship
The United States' relationship with Spain is built on a broad foundation of mutual interests--including our shared commitment to democracy, friendship, and economic ties.

And I'm confident that our countries can work together to expand trade and to make playing fields more level--so that our products and services can thrive and be accessible to more consumers.

U.S.-Spain Economic Ties
U.S.-Spain economic ties are growing, and we believe they can grow even more.

Last year, the United States imported $8.6 billion in goods from Spain--$2 billion of growth over 2003. That's a 30 percent increase.

The United States' imports from Spain are primarily in the areas of pharmaceutical products, mineral fuel and oil, and machinery.

We exported almost $7 billion to Spain last year--nearly a 17 percent increase over 2003.

The people of Spain are consuming higher levels of U.S. products, including industrial machinery, aircraft, vehicles, and other manufacturing goods needed for Spain’s modern economy.

However, on a per capita basis, we trade more with NAFTA countries ($5,618), DR-CAFTA ($771) countries, as well as Chile ($735).

And the United States trades more per capita with Germany ($1,440), the United Kingdom ($1,495), and the Netherlands ($2,540).

Our bilateral trade on a per capita basis with Spain is only $360.

So we should be doing more business together.

Foreign Direct Investment
Today, more than 600 U.S. companies employ about 200,000 workers in Spain. Many companies were drawn by Spain's success in reducing taxes, privatizing government-owned entities, and liberalizing primary economic sectors.

The value of U.S. foreign direct investment in Spain reached $45 billion in 2004--a $7 billion increase from 2002. On a Spanish per capita basis, this is about $1,045.

That's larger than our FDI per capita with Brazil ($180), Chile ($630), and Mexico ($645).

Spanish investment in the U.S. is growing. More than 200 Spanish companies now have subsidiaries in the United States, particularly in construction and banking.

Yet Spain's foreign direct investment in the United States was valued at $5.6 billion in 2004. On a U.S. per capita basis, that is only $19.

We have 41 million Spanish-speaking people, and that number is growing. There's untapped potential here.

Expanding our relationship
We can expand our economic ties--to the benefit of all our citizens.

For example, Spanish construction and infrastructure companies have enjoyed outstanding success in the United States.

We hope to see American companies winning contracts in the Spanish market soon, particularly as Spain spends $4 billion to modernize much of its infrastructure.

World Issues
The United States and Spain can also use our good relationship to advance broader issues on the world stage--in Latin America, Europe, and beyond.

We have historic opportunities to demonstrate leadership and create lasting results.

Latin America
We share a common interest in seeking open trade and expanded prosperity in Latin America.

As everyone here knows, economic development requires a firm commitment to the rule of law. Spain and the United States need to deliver this message consistently to our friends in Latin America.

Energy
We can work together to secure future energy sources. We can enhance our energy cooperation by firmly backing strong energy security principles--such as diversification and geopolitical engagement with third countries.

In 2005, Spain was the European Union's leader in bioethanol production and the only EU country in which bioethanol production significantly surpassed consumption.

Spanish leadership can be critical in the EU and in Latin America to create a sense of urgency in securing energy supplies.

We are also hopeful about a successful outcome with the Doha Round with the World Trade Organization. These bold proposals offer unique and historical opportunities.

Closing
Expanding trade is about expanding economic growth.

Spain and the United States can be proud of our deep ties that make our relationship enduring.

Each of you--as business and government leaders--plays an important role in advancing that relationship.

We should remove obstacles and do more business together.

Working together, the United States and Spain can increase opportunities for our own countries, and for others throughout the world.

Thank you.