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Blog Category: International Trade Administration

President’s Export Council to Participate in Administration’s First-Ever Fact-Finding Mission

President’s Export Council to Participate in Administration’s First-Ever Fact-Finding Mission

Guest blog post by Stefan M. Selig, Under Secretary of Commerce for International Trade

Yesterday, Secretary Pritzker and I announced that we will lead a high-level delegation on an economic fact-finding trip to Poland and Turkey later this month. I am excited to participate in the first PEC fact-finding mission for the Obama administration. 

That delegation — members of the President’s Export Council (PEC) — is the principal advisory committee on international trade to the president. It includes both public officials and private sector leaders. 

The private sector leadership that will participate during the trip represent many of the most successful and important companies doing business globally today. That includes the PEC vice chair, Ursula Burns, Chairman and CEO of Xerox Corporation. 

CEOs and senior executives from Lockheed Martin, Marriott International, Archer Daniels Midland, Boeing, Dow Chemical, eBay, IBM, and Pfizer, among others, will also participate in the fact-finding mission. 

With Poland as the sixth largest economy in the EU, and Turkey tripling its GDP per capita since 2002, the trade and investment opportunities are plenty and promising, particularly as they relate to economic growth for American businesses. 

After exploring potential opportunities in these countries, the PEC will report its findings to President Obama later this year. This trip is also an occasion for both the administration and American businesses to expand its presence in the field of commercial diplomacy. Working together as partners, we are deepening U.S. economic ties and continue to strengthen our presence on the global stage. 

In fact, one of the reasons I am excited to lead ITA at this moment in time, is because I believe we have a significant role in shaping international economic priorities.  

We can drive commercial diplomacy to new heights. 

From our Doing Business in Africa campaign, which helps facilitate business deals that result in trade-based development for the continent and jobs for the United States, to our Look South Initiative, which is designed to increase trade and investment with our neighbors to the south, or trade missions that promote clean, renewable energy throughout the world, the linkages between our trade and our diplomatic priorities is clearer than ever. 

For more information about the PEC, its members, or history, visit http://trade.gov/pec. Stay tuned for our report to the president. 

Deputy Secretary Andrews Highlights Efforts to Boost Rural Exports in Upstate New York

Deputy Secretary of Commerce Bruce Andrews says that his native Syracuse is 'poised to succeed' at the White House Rural Council "Made in Rural America" Forum

Today, U.S. Deputy Secretary of Commerce Bruce Andrews highlighted efforts to boost rural exports in upstate New York at a “Made in Rural America” forum at SUNY Cortland. Deputy Secretary Andrews was joined by U.S. Senator Kirsten Gillibrand (D-NY) at the event, where both delivered remarks on how to position rural America for success in the 21st century.

Co-hosted by the White House, U.S. Commerce Department, U.S. Department of Agriculture, and Appalachian Regional Commission, the forum convened local business leaders, industry representatives, economic development organizations and local, state and federal leaders to discuss ways to help rural businesses grow. The forum supports the Administration’s “Made in Rural America” Export and Investment Initiative that President Obama announced earlier this year to help rural businesses and leaders take advantage of new investment opportunities and access new markets abroad.

In his remarks, Deputy Secretary Andrews discussed Commerce Department work to ensure small and medium-size businesses have the tools needed to begin or expand exports and create good jobs. Specifically, he outlined goals to expand the national and global footprint of our local and rural businesses; create good-paying jobs for our workers; and cultivate prosperity in communities across Central New York.

Daring to Be Great in Supporting U.S. Exporters

Many of ITA’s senior commercial diplomats from around the globe are meeting in Washington, D.C. to discuss ways to better support business investors and U.S. exporters.

Cross blog post by by Judy Reinke, Deputy Director General of the U.S. and Foreign Commercial Service

Many of ITA’s senior commercial diplomats from around the globe are meeting in Washington, D.C. to discuss ways to better support business investors and U.S. exporters.

In order to support U.S. businesses going global, the International Trade Administration itself needs to be global.

That’s why we maintain staff throughout the United States and in more than 70 markets around the world, connecting companies of all sizes to opportunities in the international marketplace.

Technology has helped us execute our mission across borders, between time zones, and through language barriers. But just like we tell our clients seeking overseas partners, sometimes there’s no substitute for an old-fashioned face-to-face meeting.

That’s why I am excited about our Global Markets Global Meeting this week, bringing together ITA’s senior Commercial Service staff from the United States and around the world to share best practices, learn about new opportunities, and connect with the people who are making commerce happen – people we sometimes only know by email.

It’s been more than 10 years since our last meeting of this magnitude, and this week’s event will enable us to better execute our mission and understand new methods to better support our clients.

Commerce Department Reports Demonstrate that Exports Continue to Help Spur U.S. Economy and Support Jobs

Exports of Goods Supported 7.1 million jobs in 2013

Guest Blog Post by Secretary of Commerce Penny Pritzker

The Obama Administration and the U.S. Department of Commerce today released two new reports that further prove exports are strengthening our economy and creating good jobs. I am very pleased that for the very first time, our department has released data detailing the number of jobs supported by goods exports in 2013 in each of the 50 states. A second report released today highlights the level of goods exports achieved by each of the nation’s 387 Metropolitan Statistical Areas in 2013.

Back in 2010, President Obama launched the first-ever national strategy to increase exports, the National Export Initiative (NEI), with the idea that American businesses could lead our economic recovery by selling more of their goods and services to markets all over the world. The NEI has been a remarkable success. The United States has broken export records for four straight years, hitting an all-time high of $2.3 trillion dollars last year, up $700 billion from 2009. And just four years after NEI was launched, we know that 1.6 million more Americans have export-supported jobs, bringing the total to 11.3 million Americans who wake up every day and go to work in jobs supported by exports.

Today’s new data show more evidence of the NEI’s success. The first report released today, Jobs Supported by Goods Exports from States in 2013, breaks down the national total of jobs supported by good exports in 2013, 7.1 million, into estimates of the number of jobs in each state that are supported by goods exports. Texas exports supported more jobs – an estimated 1.1. million – than were supported by the exports from any other single state. Data show that goods exports from Texas, California, Washington, Illinois and New York supported an estimated 3 million jobs, or 43 percent of all U.S. jobs supported by exports in 2013.

Welcoming Investment from South America

Profile photo of Aaron Brickman, Deputy Executive Director, SelectUSA

Guest blog post by Deputy Executive Director, SelectUSA Aaron Brickman

Not only is South America the birthplace of soccer greats and the location of natural wonders, it is also an important and rapidly growing source of foreign direct investment (FDI) to the United States. According to the U.S. Commerce Department’s Bureau of Economic Analysis (BEA), more than 85,000 men and women go to work each day at South American companies operating in the United States.

The SelectUSA South America Road Show this week connected U.S. economic development organizations (EDOs) directly with inversores and investidores in Santiago, Chile; Sao Paulo, Brazil; and Bogota, Colombia to build opportunities for even more South American companies to succeed in U.S. cities and regions.

Why did SelectUSA’s first South American Road Show focus on Chile, Brazil, and Colombia?

  • These three countries accounted for nearly a quarter of inward investment from Latin American sources in 2013.
  • Brazil is the largest source of investment from South America, with a total stock of nearly $15 billion in 2013. Brazilian companies such as JBS, Embraer, Braskem, and Chilli Beans have made significant investments in the United States over the past several years. The annual growth rate of Brazilian investment averaged 19.6 percent between 2009 and 2013, making Brazil the ninth-fastest global source of investment to our country. There is robust interest from a diversity of sectors: 325 Brazilian firms took part in our seminar and one-on-one meetings with EDOs.
  • As of 2013, the stock of FDI from Chile into the United States stood at $983 million. Investment from Chile, with which we have a Free Trade Agreement (FTA), has been growing at a compound annual growth rate of 11.9 percent since 2009. More than 130 Chilean firms registered for the Road Show, and we were joined by Arauco and Elecmetal – two well-known Chilean companies who shared their experience investing in the United States.
  • Colombia, another FTA partner, was the source of over $2 billion of FDI stock in the United States as of 2013. A recent example includes Fehr Foods, a subsidiary of Grupo Nutresa, which announced earlier this year that it will invest an additional $32 million and create 105 jobs in its U.S plant. Many more Colombian firms are looking to find success in the United States, as evidenced by the 190 participants in the Road Show in Bogota. FDI from Colombia to the United States from 2009 to 2014 grew at a compound annual growth rate of 14.6 percent.

Historic Forum Yields Significant Gains for Africa-U.S. Business Ties

Under Secretary of Commerce for International Trade Stefan M. Selig speaking with Elizabeth Littlefield, President & CEO of the Overseas Private Investment Corporation (OPIC) at the U.S.-Africa Business Forum

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

Earlier this month, the U.S. Department of Commerce and Bloomberg Philanthropies co-hosted an event showing that Africa is one of the world’s next great sources of economic growth.

The first-ever U.S.-Africa Business Forum brought together American and African business leaders with the heads of nearly 50 African nations to exchange ideas and create partnerships that will promote trade, accelerate job growth, and encourage investment.

And this was not just an academic discussion. We built the kind of relationships that will help usher in a new level of success for the growing economies and businesses of Africa, as well as spur real gains for U.S. companies.

Several American companies, among others, announced new partnerships in Africa, resulting in multi-million and multi-billion dollar deals:

Also, as part of the White House’s Power Africa initiative—which pledges to invest $7 billion and create an additional 10,000 megawatts of cleaner electricity over the next five years— American company Contour Global secured a $120 million contract to rehabilitate an existing Senegalese power site and construct a new one. That deal will provide another 53 megawatts of electricity to Senegal’s citizens.

As excited as my colleagues and I are about these deals, contract signings weren’t the only highlights of the forum.

5 Takeaways about Doing Business in Africa

In case you missed it during the U.S.-Africa Business Forum last week, the International Trade Administration (ITA) published a report that shows that the U.S. trade relationship with Africa is growing at an increasing rate.

ITA’s Report on U.S.-Africa Trade and Investment examines the economic statistics related to U.S. commercial involvement in sub-Saharan Africa (SSA) – one of the world’s fastest-growing economic regions. The report is part of the Doing Business in Africa (DBIA) campaign, through which federal trade agencies are joining forces with U.S. businesses to take advantage of the growing export and investment opportunities available in the region.

Here are the five key takeaways of the report:

1. Sub-Saharan Africa is one of the fastest growing regions in the world. Average GDP growth has surpassed 5.2 percent three straight years. The International Monetary Fund estimates that this will increase in both 2014 and 2015.

2. U.S. exports to SSA are at record levels. Merchandise exports reached $24 billion in 2013, an increase of $8.8 billion from 2009. The past decade saw the largest increase in value of U.S. exports to sub-Saharan Africa in history; U.S. goods exports have increased by 130 percent since 2000, or an average of 6.7 percent annually.

3. Small and medium-sized businesses are finding success in SSA. More than 92 percent of businesses exporting to Africa are considered small and medium-sized enterprises—those with fewer than 500 employees. They accounted for a 53 percent increase in the value of exports to the region from 2009-2012.

4. Most export growth originates from Texas, Louisiana, New York, Illinois, New Jersey and Georgia. In total, these states accounted for 60 percent of total exports and more than 70 percent of growth in exports to SSA in 2013. Mineral fuel and oil drilling, automotive parts and supplies, precious metals, and boilers and machinery parts are the top export sectors to SSA common among these states.

5. Total U.S. Foreign Direct Investment (FDI) in Africa has grown by 37.5 percent since 2009. While world foreign direct investment position in 2012 was 27 percent greater than in 2009, U.S. FDI position grew by 40 percent during that period.

As evidence of the report’s positive outlook for U.S. trade with Sub-Saharan Africa watch this short video of many of the deal signings that happened last week at the U.S.-Africa Business Forum. 

If your business is ready to do business in Africa, visit Trade.gov/dbia or contact your nearest Export Assistance Center.

U.S. Secretary of Commerce Penny Pritzker Makes First Official Trip to India for U.S.-India Strategic Dialogue

U.S. Secretary of Commerce Penny Pritzker Makes First Official Trip to India for U.S.-India Strategic Dialogue

The commercial relationship between United States and India has long stood as a core pillar of the alliance between our two countries. The United States is committed to reinvigorating ties with India and expanding our economic partnership.  That is why U.S. Secretary of Commerce Penny Pritzker traveled to India this week, where she joined U.S. Secretary of State John Kerry for the U.S.-India Strategic Dialogue in New Delhi. Their trip marks the first U.S. Cabinet-level visit to New Delhi since the new Indian government was elected. Earlier this week, Secretary Pritzker visited Mumbai for meetings with Indian business leaders to discuss new avenues to reinvigorate economic ties between our two nations.

While in Mumbai, Secretary Pritzker delivered remarks at an event hosted by the Confederation of Indian Industry (CII), focused on the U.S. commitment to partner with the newly-elected Indian government, especially in areas of infrastructure, manufacturing, and business investment. Founded over 115 years ago, CII is one of the most important business groups in India and plays an active role in India’s development process. 

As part of efforts to advance the U.S.-India economic partnership, Vinai Thummalapally and Chairman & Managing Director of Export-Import Bank of India Yaduvendra Mathur signed a Memorandum of Intent (MOI) between SelectUSA and the India’s Export-Import Bank. This MOI will encourage collaboration to attract Indian investment to the United States. SelectUSA is the first U.S. government-wide program to promote and facilitate business investment in the United States. Export-Import Bank of India directly supports Indian foreign direct investments abroad.  

U.S.-Africa Business Success Stories: How a Supplier of Powerboats to the U.S. Military Started Doing Business in Nigeria

Note: This post is part of the U.S.-Africa Business Success Stories series highlighting the work of the Department of Commerce to strengthen the economic relationship between U.S. and African businesses. This series will lead up to the U.S. Africa Business Forum on August 5th, the first of its kind event, which will convene African heads of state and government, U.S. government officials and business leaders to discuss trade and investment opportunities on the continent.

Hann Powerboats’ customers include the United States Air Force, United States Navy, and the United States Army Corps of Engineers – and now, because of assistance that the company received from the Department of Commerce, they can add another name to their impressive list: the Nigerian oil and gas company, MOP Marine.

U.S. businesses like Hann Powerboats are increasingly seeing tremendous economic opportunity in Africa, and the reason why is simple: Africa is thriving. From 1995 to 2013, Africa experienced an average annual GDP growth rate of 4.5 percent. In 2012, eight of the twenty fastest growing economies in the world were in sub-Saharan Africa, and, according to the IMF, in 2013, total U.S. two-way goods with the region were $63 billion. Africa’s potential to be the world’s next major economic story is why businesses in the United States, like Hann Powerboats, want to offer their products, services, and expertise to help unlock even more of Africa’s potential – that is why the Obama Administration and the Department of Commerce remain committed to assisting American businesses in finding opportunity in this economically expanding region.

Hann Powerboats became interested in expanding its business to Africa when it was approached by a potential client in Nigeria to secure MOP Marine’s need for patrol boats. Hann Powerboats asked for assistance from the Tampa Bay U.S. Export Assistance Center (USEAC) and the U.S. Commercial Service (CS) team in Lagos to help with vetting this potential partner, and CS Lagos was able to facilitate meetings between Hann Powerboats and MOP Marine. The Tampa Bay USEAC then helped put Hann Powerboats in touch with the Nigerian Embassy in Washington D.C. to help with them acquire proper documentation. The result of this assistance allowed Hann Powerboats to make sales to MOP Marine for over $4 million.

Building Bridges to Young Africa Leaders

Building Bridges to Young Africa Leaders

Guest blog post by U.S. Deputy Secretary of Commerce Bruce Andrews

The United States understands the importance of creating opportunities for young people to succeed, both in this country and around the world. That is why yesterday, during a town hall with 500 exceptional young people who participated in the Washington Fellowship for Young African Leaders - President Obama announced the expansion of his Young African Leaders Initiative (YALI). At the town hall, President Obama announced that the fellowship, the flagship YALI program, will be renamed the “Mandela Washington Fellowship for Young African Leaders,” and will be doubled to reach 1,000 participants per year by 2016. Launched in 2014, YALI is a signature effort to support the next generation of African leaders and embodies President Obama’s commitment to invest in the future of Africa. The Washington Fellowship connects young African leaders to leadership training opportunities at some of America’s top universities to help expand their leadership skills and knowledge so they can foster change in their communities and countries.

At the Commerce Department, we are also working closely with young entrepreneurs to help spur economic growth by helping them gain the skills and connections they need to launch new businesses and create jobs in their communities. Entrepreneurship is a cornerstone of the global economy, giving people the power to unlock their economic potential and transform their communities. With the launch of the Presidential Ambassadors for Global Entrepreneurship (PAGE) initiative, chaired by Commerce Secretary Penny Pritzker, the U.S. government is partnering with 11 prominent American business leaders to mentor the next generation of entrepreneurs. Africa is an area of interest for PAGE efforts. In fact, as part of a trade mission to West Africa this past May, Secretary Pritzker and PAGE member Nina Vaca, CEO of Pinnacle Technical Resources, visited the Meltwater Entrepreneurial School of Technology (MEST) and the MEST Incubator program, which provides training, investment and mentoring opportunities for aspiring technology entrepreneurs in Africa. In addition, PAGE members Steve Case, Chairman and CEO of Revolution, and Alexa von Tobel, CEO of LearnVest, will be sharing their experiences and expertise on Wednesday on an “Enabling Inclusive Economic Development” plenary session, as part of the fellowship Summit.