Commerce.gov is getting a facelift soon. See the new design.
Syndicate content

Blog Category: International Trade Administration

President Obama Renews Charge to Help Rural Companies and Communities Compete Globally

Spiral Candles, proudly made in North Dakota

Yesterday, President Obama announced new commitments in the “Made in Rural America” export and investment initiative, which is charged with bringing together federal trade-related resources for rural communities and businesses. This announcement reflects the Administration’s strategy for ensuring workers and businesses of all sizes, from communities large and small, benefit from the nation’s economic resurgence. 

The Department of Commerce also released data yesterday that show 26 states set new export records in 2014, and many of those states are in the nation’s heartland.

The Administration’s next steps in the “Made in Rural America” initiative build on input received from rural businesses and communities throughout the past year.  Following the President’s announcement of the initiative in February 2014, agencies led several regional forums across the country, a Rural Opportunity Investment conference last summer, and new partnerships to help more rural businesses – making everything from amphibious vehicles to aquaculture products – plug in to export assistance.    

Last year, we confirmed that rural businesses have the products and services in demand worldwide, and the drive to export – just like urban businesses. The challenge is improving their access to information and export services, including financing and logistics. U.S. Commercial Service – North Dakota Director Heather Ranck and rural companies spoke about that in this “Export Experts” video released last October.

Highlights from yesterday’s announcement include the following:

Commerce Secretary Penny Pritzker Announces Twenty-Six States Achieved Record Export Levels in 2014

Commerce Secretary Penny Pritzker Announces Twenty-Six States Achieved Record Export Levels in 2014

U.S. Secretary of Commerce Penny Pritzker today announced new data that shows 26 states achieved records in goods exports in 2014, while eight additional states experienced growth in merchandise exports over 2013 levels. Total merchandise exports from all 50 states helped the U.S. achieve the fifth consecutive record-setting year of goods and services exports, which reached $2.35 trillion in 2014. 

Secretary Pritzker praised today’s announcement stressing the fact exports are critical to economic growth and job creation in communities across the country. “With 95 percent of the world’s consumers living outside the United States, opening more markets to ‘Made in America’ goods and services is fundamental to our nation’s competitiveness, job creation, and the economic security of our families,” she said. 

Strengthening partnerships with states and rural communities in support of exporters and investment attraction efforts is a key objective for the second phase of President Obama’s National Export Initiative – NEI/NEXT, which Secretary Pritzker launched in May 2014. Through NEI/NEXT, 20 federal agencies are advancing program and policy improvements to provide exporters more tailored assistance and information; streamline export reporting requirements; expand access to export financing; ensure market access and a level playing field; and collaborate with state and local organizations. 

The 26 states that set new records for exports in 2014 include:

  • Texas ($289.0 billion);
  • California ($174.1 billion);
  • Washington ($90.6 billion);
  • Illinois ($68.2 billion);
  • Louisiana ($65.1 billion);
  • Ohio ($52.1 billion);
  • Georgia ($39.4 billion);
  • Indiana ($35.5 billion);
  • Tennessee ($33.0 billion);
  • North Carolina ($31.3 billion);
  • South Carolina ($29.7 billion);
  • Kentucky ($27.5 billion);

Secretary Pritzker Tours DODOcase and Highlights Successful San Francisco Exporters

Secretary Pritzker Tours DODOcase and Highlights Successful San Francisco Exporters

On Thursday, U.S. Secretary of Commerce Penny Pritzker visited DODOcase, a San Francisco-based manufacturer of high-quality cases for electronics like tablets and smart phones.  During her tour of the company’s manufacturing facility, Secretary Pritzker met with company executives and spoke with other San Francisco area business leaders and policymakers about the importance of trade and exports to businesses' ability to grow and hire. 

DODOcase CEO and founder Craig Dalton lead the tour with Secretary Pritzker. During the tour Secretary Prtizker met with DODOcase staff and talked to many of them as they designed  iPad and tablet cases. 

Dalton launched DODOcase in 2010 after seeing a need to keep the art of bookbinding alive by adapting it to the world of digital devices. DODOcases and sleeves are handmade in San Francisco. When the company opened its doors in April 2010 - the same day iPad was released in the United States - they only had two employees. Today, their workforce has grown to 22 workers and they ship their products all around the world. From day one, 30 percent of DODOcase's business has been to customers overseas, which means that, from the start, exports have been part of the company's business model and success.  

Also joining Secretary Pritzker for the tour, were several San Francisco business community leaders including  John Dannerbeck, the President of Anchor Brewing. Anchor Brewing is a brewery and distillery on San Francisco’s Pontero Hill. Today the company sends its fourteen products to several markets around the world. While not a traditional export product, craft beer export volume increased by 49 percent in 2013, representing 282,526 barrels and an estimated at $73 million, according to data from the American Brewers Association. Secretary Pritzker also met with Kate Sofis, Executive Director of SFMade. SFMade is a non-profit organization that works to support the manufacturing sector in San Francisco, sustain companies producing locally-made products, encourage entrepreneurship and innovation, and creates employment opportunities for a diverse local workforce in the Bay Area. The San Francisco metropolitan area is the 10th largest export market in the country, with merchandise exports totaling $25.3 billion in 2013 and more than 802,000 California jobs are supported by exports. 

Last week, the Department of Commerce announced that 2014 was another record year for export growth. The U.S. exported $2.35 trillion of goods and service last year. Today, exports support 11 million jobs in the U.S. and pay up to 18 percent more than jobs not related to exports. 

Yet with 95 percent of the world’s consumers living outside U.S. borders, the prosperity of American businesses and workers is directly tied to their ability to reach new markets and new customers. That is why President Obama has made increased trade a key focus on his plan to create sustainable economic growth for American workers, and is pushing for trade promotion legislation as well as the completion of new, high-standard trade agreements that uphold our values and open new markets to American goods and services– including the Trans-Pacific Partnership. 

U.S. Exports Hit Record High for the Fifth Straight Year

Total Exports in 2014 were 2.35 trillion.

Guest Blog Post by Secretary of Commerce Penny Pritzker

Trade Agreements Will Help Accelerate Economic Growth

Today, the Commerce Department announced new data that show U.S. businesses exported $2.35 trillion of our goods and services in 2014, hitting a record high for the fifth straight year. U.S. goods exports increased 2.7 percent to a record $1.64 trillion in 2014. Records were set in exports of capital goods; consumer goods; petroleum products; foods, feeds, and beverages; and automotive vehicles and parts. Annual services exports hit an all-time high of $710.3 billion, led by record export levels in the travel, transport, charges for the use of intellectual property, and financial services sectors.

What does this mean for American businesses and American workers? Exports have been a key driver in our economic comeback. Exports support 11.3 million American jobs, and contributed one-third of our annual growth between 2009 and 2013. In some cities– like Kansas City, Albuquerque, Youngstown, Columbus, and Detroit – exports drove nearly all growth out of the recession.

As I have traveled across the United States, speaking with more than 1,500 CEOs and business leaders, I have seen firsthand the way exports are benefiting American companies and workers. Take Davenport Aviation, a certified distributor of spare parts and aviation equipment based in Columbus, Ohio.  Davenport Aviation is a small business – they now have eleven employees – but taking advantage of the global marketplace has helped them grow every year since they opened in 2009. Exports account for 99 percent of their business, and this year, because of increased demand, Davenport Aviation plans to add at least 3-4 new jobs.

All over the country, exporters like Davenport Aviation are growing and creating jobs. While America’s economy is on the right track, we have more work to do to ensure our growth is sustainable. Exports are a critical part of that effort, which is why President Obama has made increased trade a top priority. In today’s global economy, American prosperity is directly tied to our ability to reach new markets and new customers overseas. We know that 95 percent of the world’s consumers live outside our borders, so gaining greater access to markets abroad will allow our companies to expand, hire more workers, and pay better wages here at home.

Enacting trade promotion legislation will give the President the ability to move forward on trade agreements that will open doors for American businesses, including small businesses like Davenport Aviation. Passing trade promotion legislation this year is critical. 

In addition, we must finish and implement two major trade agreements that would open up new markets to U.S. goods and services: the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP). Once completed, these two agreements will give the United States free trade arrangements with 65 percent of global GDP and give our businesses a large base of new potential customers. For example, while the Asia-Pacific is currently home to 570 million middle class consumers, that number is expected to reach 2.7 billion by 2030, and this Administration wants our American businesses and workers to have access to that opportunity. 

A Record Year for American Exports, Further Proof of American Greatness

Under Secretary Stefan M. Selig (second from left) discusses the importance of exports as part of a panel discussion hosted by the Atlantic Council in Washington, DC on February 5, 2015.

Cross blog post by Stefan M. Selig is the Under Secretary of Commerce for International Trade

“The shadow of crisis has passed,” the President declared in his State of the Union two weeks ago, and the export data we released today goes to the heart of that very point.

The Commerce Department announced today that the U.S. economy hit a new annual record for exports, with $2.35 trillion in goods and services shipped in 2014.

That also represents the fifth consecutive year that our economy yielded record exports, going back to 2010 when the President launched the National Export Initiative.

If you take a deeper dive into the numbers, you see that exports are an important chapter in the larger story of our economic recovery.

Last year, we achieved record annual goods exports with Canada ($312 billion), Mexico ($240 billion) and China ($124 billion). In fact, the U.S. economy had record goods exports with 52 countries in 2014.

It was also a banner year when it came to goods exports with our free trade agreement (FTA) markets. You would expect that our exports to these countries would be strong. But last year saw enormous year-over-year growth in a variety of FTA markets throughout the world: up 7% with South Korea, 9% with Guatemala, 10% with Colombia, 11% with the Dominican Republic, and 28% with Oman.

Our services industry also enjoyed a banner year in 2014, hitting an all-time high of $710 billion.

Travel and tourism remained our strongest service export (it is easy to forget that every dollar a foreign visitor spends on airfare, lodging, and entertainment counts as an export dollar) coming in at $182 billion.

It was also a record year for goods exports, exceeding $1.6 trillion. When you take a look at individual sectors, it is easy to see a compelling story.

Exports of passenger cars represented our third-largest source of year-over-year growth—$61 billion in exports—an increase of more than $4 billion. Our three leading export markets for U.S. passenger cars were Canada, China, and Germany.

America’s Economic Resurgence: Invest in the U.S.A - The 2015 SelectUSA Summit Agenda

SelectUSA 2015 Investment Summit

There has never been a better time to invest in the United States. With a resurgent economy and a strong economic foundation to support growth for years to come, it is no wonder the United States is the world’s top destination for businesses looking to expand.

Building on this, President Obama is hosting the second SelectUSA Investment Summit, which is right around the corner.  On March 23-24, more than 2,500 people from around the world and every corner of the United States will gather in Washington to explore opportunities to grow their businesses.  This is a “don’t miss” event, and we are excited to unveil the Summit agenda. We hope you will consider joining us.

More than 1,200 people from 70 international markets have already registered, and we anticipate that the event will be filled to capacity well in advance of the Summit.

Why is interest so strong?  The United States offers an unprecedented investment climate for foreign investors of all sizes, a skilled and productive workforce, an unmatched higher education system, strong intellectual property protections, a serious commitment to innovation, and an abundant and stable energy supply.

The U.S. domestic market remains the world’s most attractive for foreign investment. Real GDP grew at a 5.0 percent annual rate in the third quarter of 2014, and businesses have added 11.2 million jobs during a record 58 straight months of private-sector job growth. U.S.-based companies offer access to millions of global consumers through high quality Free Trade Agreements. More than ever, the U.S. market is driving global competitiveness. 

How can investors learn more about this unparalleled opportunity? Attend the 2015 SelectUSA Investment Summit in Washington, D.C., March 23-24, of course.

Fast-Paced Foreign Direct Investment from India

U.S. Secretary of Commerce Penny Pritzker (center), poses with Mr. Sidharth Birla, former president of the Federation of Indian Chambers for Commerce and Industry, and Dr. Jyotsna Suri, current President of FICCI and Bharat Hotels Chairwoman

Guest blog post by Vinai Thummalapally, Executive Director of the SelectUSA Program.

I recently had the great pleasure of participating in an exciting event with Secretary of Commerce Penny Pritzker in New Delhi. Hosted by the Federation of Indian Chambers of Commerce and Industry (FICCI), the event brought together business leaders, investors, and national business associations from across India. I had the opportunity to hear their ideas and share in their excitement about India’s fast-growing foreign direct investment (FDI) in the United States.

India is now the fourth fastest-growing source of FDI into the United States, with a stock of $11 billion in investments as of 2013. As the latest available data show, FDI from India provides:

  • Jobs: U.S. subsidiaries of Indian firms employed more than 43,800 workers in the United States in 2012, with an average yearly compensation of $69,800, well above the national average.
  • Innovative R&D: In 2011, U.S. subsidiaries of Indian firms invested $46 million in research and development in the United States.
  • U.S. Exports: U.S. subsidiaries of Indian firms exported goods worth more than $2 billion from the United States in 2012.

These figures from the U.S. Bureau of Economic Analysis represent real stories of thriving businesses creating real jobs. SelectUSA, the U.S. government-wide program created to facilitate investment in the United States, has assisted several Indian companies as they sought to set up operations locally.

For example, Shri Govindaraja Textiles, or SG Mills, is a third-generation, family-owned business. The group is the largest spinner in India with a total workforce of 30,000 employees.  Last year, SelectUSA and the U.S. Commercial Service office in New Delhi, helped company management develop and execute a work plan as they considered investing in the United States.  Recently, SG Mills opened its first U.S.-based operation in Eden, North Carolina, and announced plans to invest more than $40 million during the next two years. 

U.S. Secretary of Commerce Penny Pritzker Joins President Obama in Calls for More Trade and Investment with India

U.S. Secretary of Commerce Penny Pritzker Joins President Obama in Calls for More Trade and Investment with India

As part of President Obama’s official delegation to India, U.S. Secretary of Commerce Penny Pritzker joined the President and Prime Minister of India Narendra Modi at the U.S.-India Business Summit where they addressed a large group from both the U.S. and Indian private sectors on ways to expand market access and increase opportunities for U.S. firms through improvements in India’s business climate. Secretary Pritzker specifically addressed how Commerce can play a role in helping U.S. companies gain access to the Indian market and announced the expansion of the U.S.-India Strategic Dialogue to now become the U.S.-India Strategic and Commercial Dialogue. Along with Secretary of State John Kerry, Pritzker will lead this new diplomatic effort with the Indian government designed to promote more trade and investment between the two countries. 

Today at the U.S.-India Business Summit, President Obama, Prime Minister Modi, and Secretary Pritzker spoke with more than 40 CEOs and officials during a roundtable meeting. They discussed the business and investment climate in India and ways to increase commercial and economic cooperation. During the roundtable, President Obama touted burgeoning U.S. exports to India and said the two countries are moving in the right direction, while calling for even more trade and investment. Obama also stressed the factthat U.S. companies want consistency and clarity in the regulatory and tax environment in India. Prime Minister Modi and President Obama expressed confidence that continued bilateral collaboration will increase opportunities for investment, improve bilateral trade and investment ties and lead to the creation of jobs and prosperity in both economies. Secretary Pritzker joined both the President and Prime Minister in discussing ways in which U.S. companies could improve India’s infrastructure. 

Recognizing the important role that both countries play in promoting peace and security in the Asia-Pacific Region, President Obama and Minister Modi announced a India-U.S. Delhi Declaration of Friendship. The declaration specifically calls on India’s Minister of Trade and Commerce and the U.S. Secretary of Commerce to work together towards strengthening commercial and economic ties to advance mutual prosperity, regional economic growth and stability. 

Earlier in the day, Secretary Pritzker joined the President and Prime Minister at India’sannual Republic Day Parade and in a wreath laying ceremony in memory of unknown soldiers. Following the day’s business summit and dialogue, Secretary Pritzker hosted a private reception with U.S. and Indian business leaders and discussed next steps for improving U.S. access to the Indian market.  

In July 2014, Secretary Pritzker participated in the U.S.-India Strategic Dialogue, along with Secretary of State John Kerry, the first U.S. Cabinet-level visit to India since Prime Minister Modi’s election. There, she led discussions on helping strengthen economic ties between the two nations. 

2015 Will Be the Biggest Year Yet for International Opportunities for Regional Economic Development

JoAnn Crary, CEcD, President of Saginaw Future, Inc. and 2015 Chair of the Board of Directors of the International Economic Development Council

Guest blog post by JoAnn Crary, CEcD, President of Saginaw Future, Inc. and 2015 Chair of the Board of Directors of the International Economic Development Council

2015 is off to a great start for International Economic Development Council (IEDC) and I am excited and honored to spend the next 12 months as the Chair of our Board of Directors. In this capacity, I will be traveling the globe and conferring with my fellow economic developers on many of the pressing issues and opportunities our profession is facing. One event I am particularly looking forward to attending is the 2nd SelectUSA Investment Summit. Having attended the first Investment Summit in 2013, I can personally attest to the value of coming to Washington to meet with colleagues from across the U.S., hundreds of international investors – I’m told this year’s summit will feature twice as many investors – and hear from a robust speaking program featuring top administration leaders in foreign direct investment attraction.

Foreign direct investment has proven to be a vital tool in the economic developer’s toolbox in the years following the Great Recession. In my own community, Saginaw, Michigan, it has contributed to the creation or retention of thousands of jobs over the past five years. One company, Nexteer, has invested hundreds of millions of dollars in expanding their operations in Saginaw, which has resulted in thousands of jobs being created or retained. As an economic developer, I cannot overstate the importance of the resources that SelectUSA has provided my organization and countless others within my profession. Simply put: SelectUSA brings clarity, focus and action to the role of the federal government in supporting FDI attraction at the local, regional and state level. They are an essential partner in the work of economic developers to create jobs and improve the quality of life in our communities. They are also a valued partner of IEDC in Washington and have played a key role in raising the profile of our profession over the past few years.

Commerce and White House Ramp-Up Efforts to Open More Markets to American Goods and Services

Exports are a vital part of the Obama Administration’s economic growth agenda, therefore, the Commerce Department and the White House hosted a fly-in that brought business leaders from around the country to Washington for a panel discussion on ways to send more products stamped “Made in America” around the world. More than 60 small-medium-sized business leaders representing various industries were in attendance.

Commerce Secretary Penny Pritzker participated in a roundtable discussion about how trade benefits the communities in which these companies operate and these businesses leaders live. She called on business executives to do what she called “painting the brush strokes of each individual portrait” with their neighbors, customers, and employees to make the case to them that trade is not only a global and national priority – it is also a local opportunity.When business stories such as Inficon’s - an innovative company of 250 employees in Syracuse, New York that exports instrumentation -  are told, it paints the picture that trade does indeed impact the lives and livelihoods of citizens and their communities.

Ninety-five percent of the world’s customers live beyond U.S. borders. Secretary Pritzker is leading the charge to make exporting a larger part of the DNA of all American businesses. Key to achieving this goal and at the top of the Administration’s trade agenda is passage of Trade Promotion Authority, the Trans-Pacific Partnership (TPP) and the Transatlantic-Trade and Investment Partnership (T-TIP).  Once completed, TPP is expected to make it easier to sell American products and services to more than 40 percent of global GDP.  T-TIP will cover nations that account for nearly half of the global economy and nearly a third of world trade flows. 

In 2013 exports reached an all-time high of $2.3 trillion with 2014 expected to surpass that record. Trade is a gateway for American businesses to create jobs, grow the economy and bring the markets of the world to the doorsteps of small, medium, and large businesses. The Commerce Department is committed to expanding the global footprint of American businesses and keeping America open for business.