Press Release

Commerce Secretary Gutierrez Sees Houston Port as Trade Gateway Promoting Economic Growth

WASHINGTON—In a speech to the 25th World Ports Conference in Houston today, U.S. Commerce Secretary Carlos M. Gutierrez said trade is increasingly driving global economic growth and the Port of Houston is playing a key economic role for Texas, and the United States. Gutierrez announced the Bush Administration is proposing the reauthorization of the Hydrographic Services Improvement Act to promote U.S. maritime commerce with improved navigational mapping. He also released a new study showing that a targeted federal navigation program brings the Houston-Galveston area an estimated annual economic benefit of $14.1-$15.6 million.

“Trade is a key part of America’s economy, boosting jobs, expanding consumer choice and helping keep inflation in check and the Port of Houston is a major gateway for U.S. trade. The federal government can facilitate that trade by providing the key mapping information our seaborne trade needs to navigate our ports,” said Gutierrez. “Indeed, NOAA’s PORTS program is estimating to bring $14 to $15 million in direct benefits to the Houston-Galveston economy.”

He pointed to the Central America Free Trade Agreement as an example of how Free Trade Agreements promote commerce and investment. Goods exports to CAFTA countries increased more than 25 percent to $2.4 billion last year from Texas.

NOAA’s targeted PORTS navigation program, located in 13 areas nationwide, provides vital oceanographic and meteorological information needed for navigation in and out of commercial ports. NOAA plans to install four additional PORTS systems this year in the Gulf of Mexico.

In his remarks, Gutierrez said reauthorizing the Hydrographic Services Improvement Act will promote safe, efficient, and environmentally sound marine navigation and support maritime commerce.

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.

“I look forward to working with Congress to seek passage of this important bill. Maritime commerce’s significance as the backbone of the American economy will only increase with projected increases in trade,” said Gutierrez.

Background

Trade agreements have opened 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. Last year export growth surpassed that of import growth.

The United States implemented free trade agreements with 11 countries since 2001. The United States has pending Free Trade Agreements 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.

In 2006, 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 according to the Port of Houston.

Knowledge of the currents, water levels, winds and density of the water allow mariners to utilize every inch of dredged channel depth, which can increase the amount of cargo moved through a port and harbor. One additional foot of draft may account for between $36,000 and $288,000 of increased profit per transit.

May 4, 2007 4:57 PM other countries sign Free Trade Agreements with one another, we must renew the President’s trade promotion authority and pass these Free Trade Agreements,” Gutierrez added.