Deputy Secretary's Speech

Deputy Secretary of Commerce David A. Sampson
Washington International Council on Trade
Seattle, Washington

Thank you for inviting me to speak to you today. It’s a privilege to be in Seattle. Sometimes Washington, D.C. can be far removed from the everyday challenges and opportunities facing Americans. So, I appreciate any opportunity to travel our great country and meet face-to-face with community and business leaders to ensure that what we do in Washington is grounded in reality.

Today I’d like to focus my remarks on the U.S. trade agenda and how the Bush Administration is working to ensure that the U.S. continues to benefit from the expanded global economy.

America has been at the forefront of promoting expansion in international trade for decades, and our economy has benefited from this strategy. Last year trade, both imports and exports, accounted for the equivalent of 28 percent of our nation’s GDP. Fifty years ago, it was just over nine percent, so trade in real terms has become three times as important to our economy in the last half century.

Last year, our growth in exports surpassed our growth in imports, with exports totaling more than $1.4 trillion. So, American businesses reaching new markets for their products and services are clearly having a positive impact on our nation’s economy.

Washington State has certainly been active in the export game, contributing to our nation’s overall trade growth. In 2006, exports from Washington were up to $53 billion, with China being the state’s number one trading partner.

Transportation equipment comprises the lion’s share of those exports, equaling nearly 64 percent of Washington’s exports. Crops, computers and electronic products and machinery are also exported from here to points around the globe.

Exports to Korea, one of the countries with which we hope to soon have another FTA with, was the destination for $2.5 billion in Washington exports.

But the U.S. is the only country benefiting from expanding global trade. A generation ago, trade accounted for 17 percent of the world’s economy. Today it makes up about 30 percent of the world's economy, and it’s growing.

This is good economically, and it also promotes security around the world. Economic growth means investment…it means jobs…it means increasing opportunities for citizens that create an environment of stability, transparency and peace in their communities. Nations that have strong trade and investment relationships are less likely to go to war with each other. As President Bush said, “Trade is not just an economic opportunity, it is a moral imperative.”

In line with that imperative and in support of exporters like Fresh Choice Seafood, which we will honor later today, this Administration has created a comprehensive trade policy that allows American companies to compete on a level playing field in an increasingly interconnected global trading and investment environment.

Our free trade agreements have been the hallmark of this Administration’s trade agenda. The U.S. has FTAs with 14 countries, 11 since President Bush took office in 2001. Fourteen might not sound like much, but the significance lies in the fact that over 42 percent of U.S. exports are destined for our free trade partners.

These agreements have opened the doors to international commerce, which is helping create an export culture here in America. Our recent Central America Free Trade Agreement is a great example of how we enhance our competitiveness.

Prior to CAFTA, we maintained a trade deficit with the six Central American countries that are part of CAFTA. Two years after beginning this process, our exports to the countries were $19.6 billion, and imports totaled $18.6 billion. So we are now running a trade surplus with our CAFTA partners.

Recently, I spoke at the opening of a World Trade Center in Northwest Arkansas. I was struck by the fact that a World Trade Center was being built in the Ozarks, in what was rural America only a few years ago. That is only possible because of the dynamic environment created, in large part, as a result of the increased trade with Latin America, and in particular with our CAFTA partners. That is what happens when you reduce barriers and encourage competition.

We must build on this momentum. This is not the time for protectionism, isolationism, or raising market barriers. 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.

Fortunately, earlier this month we saw the beginning of what appears to be a welcome return to the traditional bipartisan consensus on trade in this country. In a rare, but welcome sight, a breakthrough trade deal was announced last week with Speaker Nancy Pelosi standing side-by-side with U.S. Trade Representative Susan Schwab.

American political leaders were able, together, to find a path to open new markets for U.S. goods and services which builds our economic strength, and allows our nation to capitalize upon its innovative spirit. We now have a clear, bipartisan path forward for congressional consideration of the Colombia, Korea, Panama and Peru agreements, and we also have a template for extending the President’s Trade Promotion Authority.

This trade deal is a positive sign for international commerce, and it sends a strong signal to the global community as we work toward the successful conclusion of the Doha Round. It will lead to the creation of new opportunities for companies that are ready to engage the world and find markets for their products, and we at the Department of Commerce would like to help U.S. companies do just that.

Trade is a part of the very architecture of the Commerce Department, literally. President Thomas Jefferson’s mandate in 1802 to "Cultivate peace and commerce with all nations,” is inscribed on the exterior facade of our building.

We take that motto seriously and we want to help U.S. companies engage in commercial opportunities across the globe, and compete in a fair environment.

The Department of Commerce, through the Commercial Service, has many trade promotion services that can help U.S. companies become better exporters.

This includes providing accurate, up-to-date industry and country information to assist in finding markets that hold the greatest potential for U.S. products.

And we ensure that these markets stay open and that U.S. companies have fair access to these markets. We will uphold our end of the bargain in trade agreements and expect our trading partners to do so too. So we are dedicated to opening, promoting and defending a fair, level playing field around the world.

Acknowledging Export Achievement
The primary mission of the Department’s International Trade Administration is to strengthen our nation’s economy by helping companies export. I’d like to wrap up today’s remarks by recognizing a local company that has taken advantage of the assistance of our local Commercial Service office—Fresh Choice Seafood.

This company represents the opportunity of the 21^st Century global economy—a Washington business selling its products half way around the world and creating jobs and opportunity here at home.

Just like a World Trade Center in Arkansas, this company represents the promise of globalization. The Commerce Department is pleased to be a partner in bringing American goods to the world, and ensuring fair and open markets in which to compete.

President Bush, Secretary Gutierrez and I are pleased to promote a pro-growth, pro-open market strategy which allows Americans to succeed and prosper in the global economy. Together we can ensure America’s competitiveness for decades to come.

Thank you.