Deputy Secretary's Speech

Remarks by U.S. Commerce Deputy Secretary David A. Sampson
U.S.-Danish Relationships in Business Conference
Charlotte, North Carolina

Thank you, Ambassador Cain for the very kind introduction. Good afternoon to all of you. Mayor McCrory and Ambassador Petersen, it's good to be with you again

To our guests today, on behalf of President Bush and the U.S. Department of Commerce, a very warm welcome to all of you, especially our Danish visitors.

Our two countries are very good friends and allies. We cooperate on a wide range of political, security and economic issues from the global war on terrorism and security in Europe and NATO, to trade and investment. In today's global economy expanding our economic ties is increasingly important.

Ambassador Petersen, Ambassador Cain and Mayor McCrory all made a very strong case for expanding U.S.-Danish trade and investment, especially here in North Carolina.

President Bush would agree. Last month he visited the John Deere plant in Kernersville between Winston-Salem and Greensboro to talk about how to work together to make the U.S. economy stronger, and to open new markets in the global economy.

President Bush knows that we face new competitive pressures, which are global in nature. His economic policies reflect that. He continues to press Congress for lower taxes. He's holding the line on unnecessary spending to bring down the deficit. He's investing more in education to improve the skills of our workforce. We're spending record levels on R&D, $132 billion this year. The President is working to open new markets around the globe, in Latin America, Asia, and Europe.

The results of these policies are very positive. The U.S is the fastest growing major industrial economy in the world. GDP growth is averaging 4 percent per year. We expect to see a fifth straight year of economic growth in 2006.

Consumer confidence remains high. Incomes are rising. Factory orders are up. Productivity growth is strong. Housing continues to do well. In December, 108,000 new jobs were created after November's 305,000 new jobs. Since the tax cuts took effect in May 2003, there are 4.6 million new jobs.

A strong U.S. economy is good for America and Denmark and the entire global trading system. Trade is not a zero-sum game. If we're growing, our trading partners are growing. If we're creating jobs and wealth, our trading partners are creating jobs and wealth.

We must build on this strength by creating the environment where businesses can grow, where entrepreneurs are rewarded for taking risks, where workers can find jobs.

In the 21st century that means welcoming the new opportunities that a global economy offers, not fearing them. America is home to 5 percent of the world's population, which means that 95 percent of potential customers live abroad. Denmark faces a similar situation. By opening up new markets for our goods and services, we help our economies continue to grow and create opportunity for people.

North Carolina is taking advantage of trade opportunities. Today, one of every 12 jobs in the state is supported by exports. More than 200,000 North Carolinians have jobs because foreign companies have chosen to invest in the Tar Heel state. Foreign businesses come here because they recognize the quality and the skill and ethic of the American worker.

However, we all know that trade can create dislocations when industry loses its competitive edge and plants close as the textile industry and workers in this state have experienced. We understand that. But there are solutions. And the solutions are to enhance our competitiveness, invest in the future, and to engage the world, not retreat into isolationism and protectionism.

Before this job I was the head of the Commerce Department's Economic Development Administration. I spent a lot of time in North Carolina working with communities to rebuild and to embrace the global market by becoming more competitive.

On my watch alone, we awarded over 100 economic development grants in North Carolina (since 2000) totaling nearly $50 million. Those grants helped create over 16,000 new jobs, and saved another 10,500 as the Commerce Department partnered with state, regional, and local governments to invest in economic infrastructure to help North Carolina attract new capital and new industry.

EDA's most recent investment was here in Charlotte just before Christmas for $1.3 million to the University of North Carolina for a new technology transfer laboratory.

Another way you help people adjust to the realities and rigors of the global economy is by opening new markets and insisting on fair trade. This is what President Bush did by signing the Central American Free Trade Agreement (CAFTA), and by pushing hard to advance the Doha round of trade talks.

And by insisting on fair trade as we're doing with the global textile agreement, with the World Trade Organization (WTO) and with intellectual property protections we're leveling the playing field.

So, these business development meetings today come at a very good time. The economic conditions and climate couldn't be much better for doing business.

There is great potential for Denmark and North Carolina, as we've heard. President Bush remains committed to open trade and pro-growth policies that support what you're doing. At the Commerce Department, our Foreign Commercial Service experts stand ready to assist you; they have offices around the U.S. and around the world.

By nature I'm an optimist. Seeing all of you here today renews my conviction that our best days are yet to come. Today more people then ever before are living free in democracies. More countries are adopting the principles of free markets. And the result is a global economy that is providing more opportunities and creating more wealth for all our citizens.

There will be challenges ahead. But throughout the last 60 years, history has shown repeatedly that freedom and pro-growth economics can overcome mighty obstacles. I look forward to working with all of you as we build a stronger global economy.

Thank you very much.