Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
International Association of Ports and Harbors World Ports Conference
Houston, Texas

It’s a pleasure to be in Houston for the 25th World Ports Conference. Your discussions this week could not come at a more important time. International trade is an increasingly vital driver for the world’s economic engine. Nowhere is that more true than right here in America; 99 percent of the volume of overseas trade enters or leaves the U.S. by ship.

Today, I would like to discuss the Commerce Department’s role in promoting international trade and commerce, from free trade to maritime navigation services.

As a member of the Committee on the Marine Transportation System, which was established by President Bush’s Ocean Action Plan, I work closely with Secretary Peters to ensure federal policies support our ports and harbors. I know she will speak with you later this week.

Ports are our gateway to the global marketplace, but they can only generate economic activity and support jobs if they are well-run, efficient and easy to navigate.

That’s where NOAA, a part of the Commerce Department, comes in. The National Oceanic and Atmospheric Administration is celebrating the 200^th anniversary of its founding by Thomas Jefferson this year. It is a key partner in providing the tools to safely and efficiently move cargo and people through our coastal waterways.

Today, I want to make two announcements related to our ports. First, is the release of a NOAA sponsored study on the economic benefits of a system called PORTS, which is in place here in Houston.

NOAA’s PORTS program provides oceanographic and meteorological information needed for navigation in and out of commercial ports.

The report shows that for Houston and Galveston, the estimated economic benefits derived from the program are between $14.1 and $15.6 million per year. We plan to install four additional systems this year in the Gulf of Mexico.

Second, I am pleased to announce that this week the Administration will propose the reauthorization of the Hydrographic Services Improvement Act.

The bill promotes safe, efficient, and environmentally sound marine navigation and supports maritime commerce. We look forward to working with Congress on this important bill.

Ports are the vehicle for economic growth. Waterborne commerce is a $1 trillion industry supporting more than 13 million U.S. jobs.The nation’s marine transportation system moves 134 million ferry passengers, five million cruise ship passengers, and 70 million recreational boaters each year.

And all estimates point toward tremendous growth:

• U.S. ports and waterways handle more than two billion tons of cargo annually. (AAPA)
• By 2020, the total volume of cargo shipped by water is expected to be double that of 2001 volumes. (AAPA)

Houston provides an excellent case study for the economic benefits of maritime commerce. Consider these 2006 statistics: (Port of Houston)

• The Port generated $118 billion of total economic activity in Texas.
• And, nearly $40 billion of personal income was generated by jobs related to the Port.

The Bayport Terminal, which opened this spring, is expected to increase the arrival of cargo by 35 percent in the next three years, further growing the region’s economy.

It’s clear that the Port of Houston plays a tremendous economic role, and that same story is duplicated in ports around the country.

Clearly, ports play an important role in international commerce. And the vehicle to expand that commerce is free trade agreements.

At the Department we acknowledge President Thomas Jefferson’s mandate to “Cultivate peace and commerce with all nations,” a quote from 1802, which is inscribed on the wall of our building.

This Administration, more than any other, has taken that motto to heart. We believe that commerce, investment and trade provide a better way of life by helping elevate standards of living and increasing educational and social opportunities.

And clearly, it’s not just America that is engaging in global trade. A generation ago, trade accounted for 17 percent of the world’s economy. Today it's about 30 percent of the world's economy and growing.

Trade promotes security worldwide by encouraging individuals and countries to engage in commerce, rather than conflict.

That’s why under President Bush we’ve implemented free trade agreements with 11 countries and are pushing for more.

Our trade agreements have thrown open the doors to international commerce. With an all time high of more than $1.4 trillion in 2006, exports are an increasingly important part of the U.S. economy. And last year export growth surpassed that of import growth.

We are indeed creating an export culture. Our recent Central America Free Trade Agreement, or CAFTA, provides an example of how FTAs promote commerce and investment.

Prior to CAFTA, we maintained a trade deficit with the six Central American countries. Two years after signing the agreement, our exports to the countries were $19.6 billion. And imports totaled $18.6 billion, amounting to a trade surplus with the CAFTA countries.

This is not the time for protectionism. It is time to continue to engage and lead.

As you know, we have pending FTAs with Colombia, Korea, Panama and Peru. Combined, these agreements will open market opportunities with nearly 125 million consumers whose combined GDP in 2006 was $1.1 trillion.

The economic and security benefits are clear, and the Administration’s position on trade is clear. Now all eyes are on Congress.

These agreements are the benchmark to determine whether we continue to look outward and engage the world, or if we are going to embrace the failed policies of the past building economic walls around our country.

Rather than raise new barriers as we watch other countries sign FTAs with one another, we must renew the President’s trade promotion authority and pass these FTAs.

We remain committed to working with Congress to find a way forward that will result in the quick approval of these agreements.

As global trade and commerce grow, there is one issue that every nation represented here today will have to address. That is immigration. Advanced economies around the world face declining populations. That is true for America as well.

The flow of international commerce requires people. To continue to grow our economies we must have the workforce to create new ideas, build and develop the goods and services, and transport them around the globe.

The reality is that every developed country is going to have to embrace immigration in order to prosper. And those who can welcome and assimilate immigrants will have an advantage.

Here in America we are in the middle of an epic debate over immigration.

I believe we will soon have a comprehensive immigration reform policy. Our first priority was, is and will continue to be the security of the American people. And we must also recognize the demand for a workforce to continue to grow our economy. It’s not the first time. The good news is that wisdom and national interests always prevail.

All of these elements—from weather forecasting to trade agreements —ensure that U.S. ports are busy, efficient and easy to navigate.

While technological innovation has revolutionized modern business, the movement of commerce on our waterways still requires the focus on maritime transportation that President Jefferson envisioned two centuries ago.

To “cultivate peace and commerce with all,” requires an ongoing commitment to expanding free trade, and ensuring our infrastructure and transportation systems are prepared to handle the flow of goods and commerce.

We remain committed to these efforts and look forward to continuing to work with you to ensure the best system of ports and harbors in the world. Thank you.