Archive for the ‘Korea-US Trade’ Category

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The Asia-Pacific: Important for America’s Economic Future

April 3, 2012

Francisco Sánchez is the Under Secretary of Commerce for International Trade

I’ve spent a lot of time as Under Secretary for International Trade focused on the Asia-Pacific region — and for good reason. 

As President Barack Obama has said, “no market is more important to our economic future than the Asia-Pacific.”

He’s right.

The market represents 55 percent of global GDP and 44 percent of world trade.  It’s also the fastest-growing region in the world, presenting incredible opportunities for U.S. businesses to sell more products that are “Made in America.”

Case in point: the recent deal in which Lion Air, an Indonesian airline, ordered 230 Boeing airplanes valued at more than $22 billion.  It’s the largest commercial aircraft order in the history of the company, and its impact goes way beyond the numbers. 

Under Secretary Sanchez in Tokyo, Japan March 2 as a keynote speaker at the Asia-Pacific Council of American Chambers of Commerce (APCAC) U.S.-Asia Business Summit.

Under Secretary Sanchez in Tokyo, Japan March 2 as a keynote speaker at the Asia-Pacific Council of American Chambers of Commerce (APCAC) U.S.-Asia Business Summit.

This deal benefits all those who make and transport the parts that make up these aircraft. It helps the workers who assemble the planes.  In short, it supports good-paying American jobs and benefits entire communities. 

There is great potential for more U.S. businesses — both large and small — to have a similar impact, and I am determined to help fulfill this promise.  During my tenure, I’ve probably spent more of my time abroad in the Asia-Pacific than any other area of the world. 

For example, last year, I led the largest-ever higher-education mission to Indonesia.  I also visited Hong Kong with 19 American businesses on a biotech mission.  Our work in this region is a priority for us, and good things are happening. 

U.S. goods exports to the broader Asia-Pacific totaled nearly $900 billion in 2011, a 15 percent increase from 2010.  This is equal to 60 percent of total U.S. goods exports to the world.  
 
These are positive signs, and as you’ll read in this International Trade Update, the Obama Administration is committed to building on this progress by opening new doors of opportunity for U.S. businesses.   

One way is through policy.  We are working to advance the Trans-Pacific Partnership, one of the most ambitious trade agreements ever crafted.  It holds great potential for U.S. businesses to sell their products in a region with nearly three billion consumers, and we continue to talk with our TPP partners with the goal of finalizing the terms. 

Another important policy milestone took place on March 15th, when the U.S. – Korea Trade Agreement took effect.  I highlighted the importance of this development in publications like The Tampa Tribune.  It will provide big benefits for U.S. businesses. 
     
Before, in a variety of sectors, U.S. companies had to pay a tariff rate to sell their goods and services in Korea.  Now, many of these same companies can enter the market duty-free.   Almost 80 percent of American exports of industrial products to Korea will enter without getting taxed.  Estimates are that this will lead to roughly $11 billion in additional U.S. exports.  The trade agreement will also provide new opportunities in the 12th-largest economy in the world. 

The International Trade Administration is committed to linking U.S. businesses with these and other opportunities throughout the Asia-Pacific. 

Earlier this month, I was in Japan doing just this by advancing commercial relations.  I gave a keynote address to the Asia-Pacific Council of American Chambers of Commerce, a group of 27 member-chambers from across the region. 

These organizations are on the frontlines, working on the ground to help U.S. businesses succeed in a variety of markets.  I pledged to work with them to “ensure that the next chapter in the U.S. – Asia story is better than any we’ve ever had, bringing new opportunities and prosperity to people across this region and back home.”

I also participated in the Asia-Pacific Business Outlook Conference, where U.S. businesses met with 16 of our Foreign Commercial Officers from the area to explore new possibilities for doing business abroad.  It was a tremendous success and will go a long way in helping American companies succeed in the Asia-Pacific. 

There is an old Chinese proverb: “Be not afraid of growing slowly; be afraid only of standing still.”

Despite the nearly 4 million private-sector American jobs created in the past 24 months, our nation can’t stand still. We can’t be satisfied. 

Accordingly, ITA is committed to taking steps forward — both large and small — in the Asia-Pacific that will bring a more prosperous future for American workers, businesses and the overall economy.

Posted in APEC, International Trade Administration, International Trade Update, Korea-US Trade | Leave a Comment »

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Asia Pacific Business Outlook: Twenty Five Years and Many More Opportunities

March 27, 2012

This story is part of an ongoing series highlighting the information available to participants in the 2012 Asia Pacific Business Outlook (APBO)

Francisco Sánchez is the Under Secretary of Commerce for International Trade

This is my second year keynoting the 25-year old USC Marshall School’s Asia Pacific Business Outlook (APBO) Conference. It was great to see the diversity of participants, from representatives of businesses across the United States, as well as non-profit organizations, chambers of commerce, and trade associations from both the United States and countries in Asia and Latin America.

Under Secretary of Commerce for International Trade Francisco Sánchez speaks during the APBO Conference

Under Secretary of Commerce for International Trade Francisco Sánchez speaks during the APBO Conference (Photo USC Marshall School of Business)

It seems as though it’s also a reunion and convergence of sorts of 16 Senior Commercial Officers (SCOs) from Asia and local Commercial Service trade specialists. For the first time, we have the SCOs from Brazil and Russia joining the conference, contributing their insider knowledge and providing market briefings in one-on-one counseling sessions.

During my address yesterday, I was able to outline our ongoing priorities here at the International Trade Administration and across the Obama Administration as well as provide updates on some major accomplishments achieved in the past few years.

This month marks the two-year anniversary of the President’s National Export Initiative and good things are happening. Last year, U.S. exports surpassed $2 trillion for the first time in history. They supported nearly 10 million jobs, an increase of more than a million when compared to 2009 numbers. So the formula is pretty clear: exports benefit jobs, businesses and the national economy. That’s why we’ve got to continue to increase U.S. exports.

One of the areas with the greatest potential for this work is the Asia-Pacific region. It represents 55 percent of global GDP and accounts for 44 percent of world trade. And all of us at the Commerce Department are committed to keeping the U.S.- Asia-Pacific partnership growing — both through our words and our work.

Last year, I led the largest-ever higher-education mission to Indonesia and Vietnam. I visited Hong Kong and China last fall. And, earlier this month I was in Japan and Vietnam a second time to advance commercial relations. Our work in this region is a priority for us. And good things are happening.

U.S. goods exports to the broader Asia-Pacific totaled nearly $900 billion in 2011, a 15 percent increase from 2010. This is equal to 60 percent of total U.S. goods exports to the world. This partnership is generating benefits for all sides. This means jobs and growth for the American economy. In turn, U.S. products and services are helping to fuel the economic development in the Asia Pacific.

These have been win-win partnerships. Now, we’re focused on producing even more wins. To do this, the Administration is working from the policy level to the community level. For instance, one win came recently when the U.S.- Korea Trade Agreement took effect.

Before, in a variety of sectors, U.S. companies had to pay a tariff rate to sell their goods and services in Korea. Now, many of these same companies can enter the market duty-free. Almost 80 percent of American exports of industrial products to Korea will enter without getting taxed. Estimates are that this will lead to roughly $11 billion in additional U.S. exports. It will also provide new opportunities in the 12th largest economy in the world. That’s a big win.

Another win involves the Trans-Pacific Partnership. As many of you know, it’s an ambitious, high-standard trade agreement for doing business in the Asia-Pacific. It seeks to address new and emerging trade issues and 21st-century challenges. Working with our colleagues at the Office of the United States Trade Representative — we are addressing traditional trade issues involving goods and services;  rules on intellectual property; and technical barriers to trade. And we are making progress. A TPP framework was agreed to in Honolulu at the APEC Leaders’ meeting in November. It was a landmark accomplishment. The agreement identified five central features that nations around the world are already viewing as a new standard for trade agreements.

The Commercial Officers from across Asia, Russia and Brazil as well as the domestic trade specialist stand ready to help U.S. businesses explore the possibilities that are out there. There were some great conversations today.
This is a chance to achieve common goals, such as creating more markets and customers for U.S. businesses, which can lead to more sales, which will boost U.S. exports, which supports jobs and strengthens the American economy. These are big goals that will make a big impact.

And I look forward to working with all of you in the years ahead to achieve these goals.

So let’s get the conversation started.

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, Korea-US Trade, National Export Initiative, Trade Shows and Trade Events | Tagged , , , | Leave a Comment »

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How U.S. Companies Can Start Taking Advantage of the U.S.-Korea Trade Agreement

March 6, 2012

The Office of Japan and Korea within the Market Access and Compliance unit of the International Trade Administration assists U.S. firms that are encountering trade and investment barriers in Japan and Korea.

The U.S.-Korea Trade Agreement will enter into force on March 15, 2012.

What does that mean for our companies – both those who are already doing business in Korea as well as those who are considering entering the Korean market for the first time?  How can companies ensure that their products will receive preferential treatment on or after March 15?South Korean flag and images of South Korea

On the first day the agreement takes effect, March 15 of this year, almost 80 percent of U.S. exports to Korea of consumer and industrial products can be imported duty-free. Nearly 95 percent of remaining tariffs will be eliminated within 5 years after that date, and most remaining tariffs will be eliminated within 10 years. 

A web-based resource created by the International Trade Administration, the FTA Tariff Tool, is a great way to see if your product would benefit under the agreement. The database conveniently links to the latest U.S. tariff schedule and relevant rules of origin, helping you to determine the exact tariff benefit for your product and the rate at which the tariff is eliminated. 

Additionally, nearly two-thirds of all U.S. exports of agricultural products to Korea will become duty-free starting March 15. This agreement also includes a number of significant non-tariff commitments that will come into force on March 15, including obligations to be transparent when developing and passing new regulations and laws that affect bilateral trade. 

Commitments on strengthened protections for intellectual property rights benefiting American creators and innovators will also come into force on that day. Finally, commitments opening Korea’s $580 billion services market will also be in effect beginning March 15.

To ensure that your company’s product will benefit under the agreement, you will need to determine that the product is originating in either the territory of the United States or Korea under the rules of the agreement, and claim U.S.-Korea trade agreement benefits when importing. 

U.S. Customs and Border Protection (CBP) will soon publicly release implementation instructions and interim regulations regarding U.S. imports under the agreement. Importers should closely monitor CBP’s FTA website and send inquiries on U.S. imports directly to fta@dhs.gov.

For more information, you can also contact your local U.S. Export Assistance Center and the U.S. Commercial Service at the American Embassy in Seoul, Korea.

The International Trade Administration’s U.S.-Korea Trade Agreement Portal should be your next stop!

Posted in Competitiveness, Exporting, Korea-US Trade, Manufacturing, Services | Tagged , | 6 Comments »

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The National Export Initiative: Making Progress and Striving for More

March 6, 2012

This post contains external links. Please review our external linking policy.

Francisco Sánchez is the Under Secretary for International Trade

This month marks the second anniversary of President Obama’s National Export Initiative (NEI).  Launched in 2010, its goal is to double U.S. exports by the end of 2014.  In real terms, that means doubling our exports from $1.5 trillion at the end of 2009 to $3.1 trillion at the end of 2014.

As we reach this milestone, I’m proud to report that to date the NEI has been a resounding success. 

U.S. exports have grown 34 percent since the President implemented the initiative.  Last year, U.S. goods and services exports reached a record $2.1 trillion.  As a result of these successes, we are making progress toward the President’s goal. 

Why is this important?

Under Secretary Sanchez tours the Larsen & Toubro engineering facility in Chennai

Under Secretary Sanchez tours the Larsen & Toubro engineering facility in Chennai (Photo Larsen & Toubro Limited)

Because, even as the nation’s economic recovery accelerates, there is still a lot of work to be done.  Too many Americans are still looking for work.  Too many businesses find themselves with too few opportunities. 

Exporting addresses these challenges, providing companies with new opportunities to sell their goods abroad, which is where more than 9 out of 10 of the world’s potential customers live.  When a business reaches more customers, it can lead to more sales, more revenues and ultimately more jobs. 

The overall economic impact of exports has been tremendous; they comprised nearly 14 percent of GDP in 2011 — yet another record. 

Naturally, as the Under Secretary of International Trade, I’m pleased with this success.  Certainly, I’m proud of the contributions that the International Trade Administration (ITA) — particularly it’s talented staff — has made to this progress.

For example, last year alone, ITA helped 5,600 American companies export for the first time. This is great news. But I want to be clear: We are not satisfied.

With new economic challenges emerging in pockets throughout the world, in Europe for example, we realize that we have to work harder to keep the momentum of the NEI going.

That’s why we continue to push for progress in a number of ways.  Here are four specific areas of focus:

1. Policy: The United States – Korean Trade Agreement will take effect later this month.  It is estimated to create roughly 70,000 jobs and add billions to the U.S. GDP.  The agreement will create new opportunities for U.S. companies in the world’s 12th largest economy, which is sure to boost exports and enhance the nation’s competitiveness.

We look forward to supporting our colleagues at the Office of the United States Trade Representative to resolve the outstanding issues involved with the free trade agreements with Panama and Colombia. 

2. Promotion: We continue to actively link U.S. companies with promising growth markets and industries around the world.  For instance, as you’ll read about in this edition of International Trade Update, I just returned from India where I accompanied twelve U.S. companies on the first-ever ports and maritime trade mission.

Recently, the Indian Government announced infrastructure investments of nearly $100 billion in the port and shipping sectors.  U.S. companies offer cutting-edge products and services that would be a valuable asset to this development.  Recognizing this enormous opportunity, I urged all sides to come together and create mutually beneficial partnerships. I’ll continue to do that in different industries and markets all over the world. 

3. Enforcement: We’ll continue to fight to level the playing-field for American firms seeking to do business overseas.  One exciting new effort to do this is President Obama’s Interagency Trade Enforcement Center. Working with colleagues from across the U.S. government, we will take unprecedented steps to remove the barriers to free and fair trade.  American businesses deserve a fair chance to compete.  We’ll keep working to give them that chance.  

4. Partnerships: With efforts like the New Market Exporter Initiative and our work with the Brookings Institution, we will continue to leverage our partnerships to maximize opportunities.  In fact, on March 12, the actual date the NEI was launched, I will be at the Port of Baltimore celebrating their great contributions to U.S. exports. 

With these and other measures, all of us at ITA remain focused on ensuring that the future of the National Export Initiative is as successful as the past — if not more so. Additional stories, successes and achievements will be detailed in the special NEI anniversary edition of the International Trade Update due out later this month.

We look forward to working with all our stakeholders to increase U.S. exports and expand opportunities for Americans across the country. 

We won’t stop working until every American is working.

Posted in Commercial Service, Exporting, International Trade Administration, Korea-US Trade, National Export Initiative | Tagged , , | Leave a Comment »

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Baltimore’s Maritime Applied Physics Finds Success in South Korea

February 29, 2012

Doug Barry is an International Trade Specialist in the Trade Information Center, part of the U.S. and Foreign Commercial Service

Maritime Applied Physics is a small Baltimore-based engineering and manufacturing company.  Founded 25 years ago, the firm has been exporting for about 10 years.  Mark Rice is an owner of the company who was interviewed recently by Doug Barry of the Trade Information Center.

Barry:  What does your company produce and what markets have you sold to?

Rice:  We build marine components for ships as well as some advanced marine vehicles including unmanned boats.  Some of our exports have been large rudder systems and bridge controls in South Korea.  We’ve designed an America’s Cup hull for the Italians.  We’ve done some advanced battery work in France.  And we currently have a project in Scotland where we’re building a control system for a large piece of marine machinery.

Mark Rice, owner of Maritime Applied Physics of Baltimore, Maryland, speaks to Doug Barry about exporting and the challenges he faced.

Mark Rice, owner of Maritime Applied Physics of Baltimore, Maryland, speaks to Doug Barry about exporting and the challenges he faced.

Barry:  Less than two percent of all U.S. companies export.  What made you part of that less than two percent?

Rice:  Well, we were originally an accidental exporter.  We were contacted by a business agent from South Korea who found that we had done a project for the U.S. Navy that was very similar to one that was starting in South Korea.  And he called and asked us to come to South Korea to Hyundai Heavy Industries, the largest shipyard in the world.  And we decided to get on a plane and go, and ended up in a bidding war against a U.K. company that lasted about nine months.  And at the end of that process, we won the bid against a much larger company and began the adventure of exporting.

Barry:  What was the bid worth?

Rice:  The bid was $2.3 million, which was about equal to 50 percent of our revenue at that point, so it was a huge export in terms of percentage.

Barry:  You referred to yourself as an “accidental exporter.”  Many U.S. companies would classify themselves as such, and you discussed with your partners at the time whether to do it or not.  What was the mindset? 

Rice:  I think when we were first contacted we were intrigued, but probably had zero knowledge to base our decision on.  So as we went through the process, we stumbled through a bunch of things and made a lot of mistakes.  We almost violated the International Trafficking in Arms Regulations.  That was our first problem. As we went into the bidding, I guess we got drawn into it.  The competition took on a “we’ve-got-to-beat-these guys” sort of attitude.  And so we made actually three trips to South Korea during that process.  And in each case, the person who had originally contacted us gave us a little bit more of the South Korean culture, and we adapted.

Barry:  And what were the most challenging cultural things that you ran into and how did you overcome them?

Rice:  We were largely people who had not traveled internationally, so this was a whole new culture for us and a new experience.  And in South Korea, businesses perform very differently than in the United States.  Much to the chagrin of our business partner there, we made many mistakes as we went through this process, but found, as in most business relationships, a smile and a “thank you” and a “I’m sorry” every once in a while made up for all these things.  And so at the end of the day, it was our technical background that really won the project. 

Barry:  Was there a memorable cultural faux-pas?

Rice:  Probably the biggest mistake was in the bidding process. We were expected to start high and work our way down a significant amount.  And, you know, we were told in the first round of the bid: “give us your best price.”  And we did that, which gave us very little room to lower our price.  And that, according to our business partner, was an insult to the Korean company.  But in the end we won and our people grew immensely from the whole experience. 

Barry:  Intriguing that you mention the personal growth side of things.   How did going outside your comfort zone enhance the abilities of your team?
 
Rice: I think one of the things that we noticed right away in South Korea is our Korean counterpart engineers were very experienced in exporting.  They dealt with ship owners from all over the world.  So we were at a real disadvantage, engineer to engineer, in these relationships.  And I think that that comfort level with dealing on an international basis with another professional, exchanging information, what are the cultural norms and how do you build friendships and business relationships, was really what changed our people.  So we came away not as insular as they were when they left the United States.

Barry:  What was the key?  A different attitude?  New skills? 

Rice:  I think it’s removing the fear barrier.  It’s confidence and the ability to take on something that you’re not sure of.  It challenged us to get out of our established ways.

Barry:  How did the U.S. Commercial Service of the Commerce Department help you? 

Rice:  In a very significant way.  We came back from South Korea and our bank said, “This is too risky a deal.  We’re going to withdraw our credit lines from your company.”  So we had to go find a new bank.  And key to that was the Baltimore Export Assistance Center (of the Department of Commerce) introducing us to the Small Business Administration and ultimately getting a 90 percent loan guarantee on the project.  And that enabled us not only to do the job, but to survive that whole (economic) crisis. I’ve never seen an industry-government relationship that’s as helpful to a company as the one the Department of Commerce offers.  It’s remarkable.

Barry: So the moral of the story is don’t miss the boat on the way to the Korean shipyard.

Rice:  It’s don’t fear that world.  And if you’re only thinking of the United States as your market, you’re missing a huge opportunity.  Exporting may actually be a very necessary step that you take for your own survival as well as your growth.  Go forward and engage and use the U.S. government to help you.  And enjoy the great cultural experiences that will come with doing business.

Posted in Commercial Service, Exporting, Korea-US Trade, Success Story | Tagged , , | 4 Comments »

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Proud of Our Progress in 2011, Determined to Do More in 2012

January 10, 2012

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

At the International Trade Administration (ITA), we measure our success by the positive impact we have on jobs, businesses and the growth of our economy.  That’s why I’m proud to say that ITA had a great year in 2011, one full of many noteworthy accomplishments. 

Just to name a few:

Under Secretary Sánchez with two of the 56 members of the largest education trade mission to Indonesia and Vietnam that took place in March 2011.

Under Secretary Sánchez with two of the 56 members of the largest education trade mission to Indonesia and Vietnam that took place in March 2011.

  • U.S. goods and services exports were up roughly 16 percent in the first nine months of 2011 — the latest data available — putting the United States on pace to achieving the President’s National Export Initiative goal of doubling U.S. exports by the end of 2014;
  • There were six record-breaking months of U.S. exports during the year;
  • President Obama signed three important trade agreements with Korea, Colombia and Panama, which will support tens of thousands of jobs for the American people and create an abundance of new opportunities for U.S. firms; and
  • The United States’ host year for the Asia-Pacific Economic Cooperation (APEC) Forum was a tremendous success, strengthening our economic ties with a critically important region of the world.

I could go on and on.  We’ve achieved a lot.  But, all of us at ITA know that there is much more work to do.  Too many people are still out of work.  Too many businesses are still struggling.  And, the fact remains that only 1 percent of American businesses export; of those that do, 58 percent export to just one market. 

So, there is incredible potential for U.S. businesses to be more involved in the international markets and bolster their bottom lines.  We at ITA are determined to help them achieve these goals.  As part of this effort, we will continue to have an unprecedented focus on key initiatives.  These include: 

  • Ensuring that U.S. businesses seize the incredible opportunities developing in emerging technologies like renewable energy, and emerging markets, such as Brazil and India;
  • Continuing to level the playing field for U.S. businesses in international markets by vigorously enforcing trade laws, advocating on behalf of qualified American firms for contracts with foreign governments, and empowering entrepreneurs with the tools they need to compete;
  • Training our foreign commercial services officers — in markets across the globe — so that they can begin promoting foreign direct investment into the United States as part of the new SelectUSA initiative, the first coordinated federal effort designed to attract capital from overseas to spur economic development on our shores; and
  • Supporting advanced manufacturing, a sector that’s historically been the heart of our economy and provided a ticket to the middle class.  By expanding the opportunities available to U.S. firms in overseas markets, we will continue to help manufacturing businesses here at home sell their products, strengthen their bottom lines and impact jobs.

With each and every action we take, we fully realize that our best success comes when we partner with stakeholders like the readers of International Trade Update; you are leaders from the private sector, academia and a wide-range of other fields, and have been critical to our success. 

That’s why, throughout 2012 and beyond, we look forward to working with you to help continue our nation’s economic recovery. 

That’s a New Year’s resolution we can all rally around.

Posted in APEC, Competitiveness, Exporting, International Trade Administration, International Trade Update, Korea-US Trade | Tagged , | 4 Comments »

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Quick Approval of Trade Agreements is Good News for the American Economy

October 12, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade

Earlier tonight, the millions of Americans concerned about jobs got some good news: Congress approved trade agreements with Korea, Colombia and Panama.

It’s been a long journey to this moment, so let me cut right to the chase: Opening new doors of opportunity for U.S. firms to sell their products in these three markets will strengthen our economy and sharpen our competitive edge in the global economy.

It will also support jobs.

Ford Motor Company employees at the Michigan Assembly Plant in Wayne, MI assemble a 2012 Ford Focus.

Ford Motor Company employees at the Michigan Assembly Plant in Wayne, MI assemble a 2012 Ford Focus, one of the vehicles targeted for the Korean market under the U.S.-Korea Trade Agreement. Photo by: Sam VarnHagen/Ford Motor Co. Used with permission.

For every billion in U.S. goods exported overseas, more than 5500 jobs are supported here at home.  In total, the three agreements will support tens of thousands of jobs and add billions to the U.S. GDP — reasons for all Americans to cheer.

I commend President Obama for his leadership in creating a balanced trade agenda.  He has worked tirelessly to get the best possible deal for businesses and workers.  Congress also deserves credit.  These measures were passed with bipartisan support.  That both parties were able to find common ground on these issues speaks to positive economic impact that these agreements will have on communities across the nation.

I also applaud the President and Congress for renewing the Trade Adjustment Assistance program.  Why?  Because whenever there is change, there are some who are negatively impacted; some Americans, through no fault of their own, have lost their jobs because of foreign competition.  But all is not lost: TAA will help them retrain and retool for success in the 21st century economy.

The world is rapidly changing, and we must change with it to succeed in this economic environment. That’s why these three trade agreements are so important; they’ll create new opportunities across all regions and sectors.   Take the auto industry, historically a backbone of the middle class:

In 2010, the U.S. exported approximately $1.5 billion in vehicles and parts to the three prospective markets despite facing relatively high average tariffs.  Because the agreements have passed, the tariffs on these products will ultimately fall to zero, expanding opportunities for growth in exports for U.S. companies.

This is a big deal.  As President Obama said in his speech to Congress outlining the American Jobs Act:

“If Americans can buy Kias and Hyundais, I want to see folks in South Korea driving Fords and Chevys and Chryslers. I want to see more products sold around the world stamped with three proud words: “Made in America.”

With the passage of these three trade agreements, chances are we will indeed see more U.S. products sold around the world.  That’s a victory for us all.

Posted in International Trade Administration, Korea-US Trade, National Export Initiative | Tagged , , , , , , | 7 Comments »

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Strengthening the U.S. Economy by Strengthening Trade Relationships

October 7, 2011

This post contains external links. Please review our external linking policy.

Greg Bell is a writer in the Intenrational Trade Adminsitraiton’s Office of Public Affairs.

“Products stamped with the words ‘Made in America’ are still in demand around the globe.  We must seize these opportunities.”

That’s what Under Secretary for Commerce, Francisco Sánchez, wrote in an op-ed that appeared in today’s Miami Herald.  In it, he stressed the important role that exports play in strengthening the economy and supporting jobs for American workers.  In fact, for every billion in goods exported abroad, more than 5500 jobs are supported here at home.   

Sánchez’s opinion piece comes on the heels of President Obama’s announcement earlier this week that he has sent three pending trade agreements to Congress for approval.  If ratified, the agreements – with South Korea, Colombia and Panama – would support tens of thousands more jobs, and increase the U.S. GDP by billions of dollars. 

The agreements would also have a huge impact on the South Florida economy.  Sánchez writes that “as a native Floridian, I know how important trade is to the state. Take a look at the most recent numbers: In 2008, nearly 40,000 companies exported goods from Florida locations; 96 percent of these businesses were small and medium-sized enterprises, the very companies that serve as the backbone of our middle class … I expect these numbers to grow as our trade increases, especially throughout the Western Hemisphere.”

The full article is available at The Miami Herald.

Posted in Competitiveness, Exporting, International Trade Administration, Korea-US Trade | Tagged , , | 4 Comments »

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Making it Easier to Sell Products “Made in America”

October 3, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

It was a good day for American businesses and workers.

Earlier this afternoon, President Obama submitted three free-trade deals — with Korea, Colombia and Panama — to Congress for consideration.  If passed, these agreements would be a big boost to our economy, providing new opportunities for U.S. companies abroad, while strengthening our economy here at home.

As the President said: “These agreements will support tens of thousands of jobs across the country for workers making products stamped with three proud words: Made in America.”

President Obama has long said that exports are a key to the nation’s economic recovery.  Nearly two years ago, he launched the National Export Initiative with the goal of doubling U.S. exports by the end of 2014.  And, last month, in a speech before Congress where he unveiled the American Jobs Act — a bipartisan proposal to put Americans back to work — he stressed the economic benefits of these free-trade agreements.

The President has correctly recognized that exporting provides U.S. businesses with new opportunities to sell their goods and services in markets overseas.  The pending FTAs before Congress would ensure that this trade — with three important markets — is both free and fair.

This is important.  Consider that, in 2010, the United States enjoyed a $9.9 billion non-oil trade surplus with our FTA partners, as compared to a $371 billion non-oil trade deficit with the rest of the world.  In addition, last year, 41 percent of U.S. goods exports went to our FTA partners, even though those countries only account for 9 percent of global Gross Domestic Product.

Clearly, fair trade is good for our economic health and future.  If passed, the pending FTAs are sure to enhance these benefits.  Now, there have been a lot of misconceptions about these FTAs.  To set the record straight, here are some basic facts:

Korea

The U.S. –Korea trade agreement will:

  • Support at least 70,000 American jobs, and boost annual exports of American goods by up to $11 billion through tariff reductions alone.
  • Create new opportunities for U.S. exporters in Korea’s $1.5 trillion economy, the 12th largest in the world in 2010, based on purchasing power parity exchange rates.

Colombia

The U.S. – Colombia trade agreement will:

  • Generate new possibilities in the 3rd largest economy in Central and South America.
  • Reduce barriers to U.S. exports, spurring new opportunities for our businesses, workers, farmers and ranchers, thereby supporting more and better jobs for Americans.

Panama

The U.S. – Panama trade agreement will:

  • Provide new possibilities with one of the fastest growing economies in Latin America, expanding 6.2 percent in 2010, with similar annual growth forecast through 2015.
  • Enhance U.S. competitiveness by eliminating tariffs and other barriers to U.S. exports and expanding trade between our two countries.

Bottom line: By ensuring that the American people have a level-playing field to compete on in these three important markets, the FTAs would spur billions in economic activity, support tens of thousands of American jobs, and sharpen the United States’ competitive edge moving into the future.

The President has worked hard to strengthen these agreements to, in his words, “get the best possible deal for American workers.”

Now, I join his call in urging Congress to pass the FTAs without delay.

Posted in Competitiveness, Exporting, International Trade Administration, Korea-US Trade, Small Business | Tagged , , , , , | 6 Comments »

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Marking Milestones in Social Media

December 9, 2010

Valeisha Butterfield is the Deputy Director of Public Affairs for the International Trade Administration

Today we mark a milestone in our social media channels with more than 1,000 followers on twitter/trade.gov, nearly 100 entries and 500 comments on our blog, blog.trade.gov and more than 1,000 fans on our face book page facebook.com/TradeGov. The conversations we’ve had in these areas are key to ensuring all of our customers are kept abreast of the amount of activity, requests for input and issues of importance to them and us.

Some of the more lively discussions we’ve had on the blog include our call for ideas for President Obama’s National Export Initiative, last year’s Green Build Road Show that took readers virtually to five cities in two weeks eventually reporting directly from the ground in Phoenix, AZ at the Green Build Conference and Expo, and the conversation on relief efforts and opportunities to help rebuild Haiti.

Moving forward, we will be keeping you up to date on the developments in the Korea-US Trade Agreement, the upcoming APEC meetings hosted by the United States in 2011 and some innovative videos that will teach you how to make international sales without leaving the U.S. We enjoy being in touch with our clients, customers, stakeholders, and international buyers in many ways and if you have suggestions on how we can be more innovative and interactive, we’d love to hear your suggestions.

Posted in APEC, Green and Sustainable, Korea-US Trade, National Export Initiative | Tagged , , , , | 10 Comments »

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