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Blog Category: National Export Initiative

The NEI's Second-Year Anniversary: Supporting American Jobs

The Port of Baltimore – one of the top ports in the country – handles around 30 million tons of cargo and 400,000 containers annually.

Guest blog post by Francisco Sanchez, Under Secretary of Commerce for International Trade

Earlier today – on the second anniversary of the President’s National Export Initiative – Commerce Secretary John Bryson announced that the number of American jobs supported by U.S. exports increased 1.2 million from 2009 to 2011. In total, U.S. exports now support 9.7 million jobs, serving as a bright spot in our economy, and helping to fuel our economic recovery. In addition, last year, there were a record $2.1 trillion in U.S. exports.  And there is a lot more room to grow.

Never has that been more clear than today.

I was in Baltimore this morning to see our efforts to support U.S. exporters first-hand. The Port of Baltimore – one of the top ports in the country – handles around 30 million tons of cargo and 400,000 containers annually. As the head of the U.S. Department of Commerce’s International Trade Administration (ITA), I was proud to sign a Memorandum of Agreement with the Port of Baltimore to expand cooperation on export promotion activities here at home.

The Port was also one of 12 U.S. organizations that participated in the February 2012 ports trade mission to India that I led on behalf of the Department of Commerce. During this mission, the Port of Baltimore signed a sister-port Memorandum of Understanding with the Mundra Port, in an effort to increase trade between the two ports. Two way trade between India and the U.S. grew to $58 billion in 2011 and is an NEI priority market. That is why Secretary Bryson will be leading his first trade mission to India at the end of the month to further opportunities for U.S. businesses in this region.

Promoting Best Practices in Exports and Foreign Direct Investment to Spur Economic and Job Growth

Promoting Best Practices in Exports and Foreign Direct Investment to Spur Economic and Job Growth

When President Obama first announced the National Export Initiative (NEI) two years ago—with its goal of doubling U.S. exports by the end of 2014—there may have been some who wondered what this had to do with domestic economic development. But the answer is simple: a lot. From the worker in an auto plant owned by a foreign firm, to the many service businesses across the country selling to overseas visitors, to the U.S. companies from every sector selling their products and services to foreign buyers, America’s economic vitality is very much tied to the world market. And the benefits are many: more jobs, higher wages, and the overall prosperity that comes when we are selling to billions of consumers worldwide.

One often-overlooked element of international trade is foreign direct investment (FDI). The United States is the largest recipient of FDI in the world. Foreign-owned companies operating in the United States support more than 5.3 million U.S. jobs, and U.S. subsidiaries of foreign-owned firms account for 21 percent of U.S. exports. The total stock of FDI in the United States—$2.3 trillion—is equivalent to nearly 18 percent of U.S. gross domestic product.

But there is room for such investment to grow: the U.S. share of world FDI has been declining since the 1990s, as other economies aggressively compete to attract such investment. One impediment to FDI growth in the United States has been the lack of concrete tools and strategies available to local economic development practitioners that could help them more effectively leverage their communities’ competitive strengths to expand exports and attract FDI.

Working Locally to Boost Exports Nationally

Under Secretary Sanchez at the Brookings Institute (Photo Credit: Paul Morigi)

Guest blog post by Francisco Sanchez, Under Secretary of Commerce for International Trade

America is made up of different communities — each with its own character, challenges and opportunities.  Regional leaders have a unique view of these issues and bring to the table incredible insight into their respective regions.  That’s why the International Trade Administration (ITA) is firmly committed to working with these local leaders to utilize their insight, and ultimately help more American businesses expand into overseas markets.

This is important work because exporting supports American jobs, provides new opportunities for businesses, and makes significant contributions to the growth of the American economy. 

In recognition of these positive economic benefits, President Obama launched the National Export Initiative (NEI) in 2010 with the goal of doubling U.S. exports.  On the eve of the NEI’s two-year anniversary — officially on March 12 — I’m proud to say that we are on track to meet this goal.  Last year, there were a record $2.1 trillion in exports.  Plus, exports comprised nearly 14% of U.S. GDP — another record.

Progress has been made, and we are determined to keep it going.  Key to this work is our partnerships with local and regional partners.  While ITA has a talented and dedicated staff doing great work in 108 offices throughout the nation, we recognize that we can have an even greater reach through partnership.

Case in point: Our work with the Brookings Institution.

Today, Brookings’ Metropolitan Policy Program released a report called “Export Nation 2012: How US Metropolitan Areas Are Driving National Growth.”  

Commerce and FedEx Team Up to Provide Opportunities for Exporters

U.S. Exports of Goods and Services: Percent Change from Prior Year

In his 2010 State of the Union address, President Obama set a goal of doubling exports by the end of 2014 – an increase that will support two million additional jobs here at home. In a time when millions of Americans are out of work, boosting U.S. exports is a short-term imperative because exports support millions of good, high-paying American jobs. And for companies looking to expand, looking beyond our borders only makes sense because 95% of the world’s customers are outside our borders.

Since the President announced his goal, exports are up 33.5% and slightly ahead of the pace needed to achieve the National Export Initiative goal of doubling exports by 2014. Yet, even with that success, only 1% of businesses export and of those that do, 58% export to only one market. That is why the Department of Commerce’s U.S. Commercial Service has joined forces with several private sector vendors in the New Market Exporter Initiative.  This program provides companies with expert analysis of target countries, matchmaking services with vendors or distributors and help with logistics and shipping.

Those strategic plans are paying off. Today we begin a series highlighting private sector vendors and the manufacturers they are helping export to new markets.

FedEx works closely with the Commerce Department to support the National Export Initiative by reaching out to its customers, especially those in the manufacturing sector, who are best positioned to export.  Through its expansive outreach network, FedEx has seen firsthand how looking beyond our borders can breathe new life and new jobs into a business.  They know that exporting is no longer just a competitive advantage, but a means to survive this changing environment.

Commerce Secretary John Bryson Meets with the National Advisory Council on Minority Business Enterprise

NACMBE with Secretary John Bryson

Data from the Department of Commerce reveal that minority-owned firms are an engine of job growth and are more likely to export than non-minority-owned firms. These firms account for $1 trillion in gross receipts and employ almost six million Americans. To bolster the economic impact of minority entrepreneurs across the county, the National Advisory Council on Minority Business Enterprise (NACMBE) was established in April 2010.  

Commerce Secretary John Bryson hosted the fifth meeting of the National Advisory Council on Minority Business Enterprise today at the Commerce Department. The Council, co-chaired by Mark Hoplamazian, CEO of Hyatt Hotel Corporation, and Janice Savin-Williams, co-founder and principal, Williams Capital Group, includes CEOs, entrepreneurs, investors, and scholarly research experts.

“It’s clear that minority communities and minority-owned businesses were hit hard in the recession. However, in the last 22 months, 3.2 million jobs were created.  Also, credit is flowing again to a certain degree,” Bryson said today. “But with your help, we can foster an environment where minority entrepreneurs, innovators and business leaders can do what they do best–create jobs.”  

Economic Partnership with Saudi Arabia Will Help U.S. Expand Trade, Blank Tells Saudi Business Forum

Acting Deputy Secretary Blank addresses the U.S.-Saudi Business Opportunity Forum

On Tuesday, Acting Deputy Secretary of Commerce Rebecca Blank addressed the growing economic importance of Saudi Arabia at the U.S.-Saudi Business Opportunities Forum. In her remarks, Blank stressed the value of a U.S.-Saudi commercial relationship that benefits both Americans and Saudis.

Blank praised King Abdullah for the steps he has taken to encourage economic partnership with the U.S., citing greater public participation within the political system and the appointment of the first woman to lead Saudi Arabia’s education system. These political and social advancements have led to Saudi Arabia’s jump to 12th in the World Bank’s Ease of Doing Business Survey, up from a rank of 64th only a few years ago. Saudi Arabia is committed to expanding and diversifying its economy beyond oil and into new knowledge-based industries, a commitment evidenced by over $750 billion of infrastructure investment to take place over the next five years.

In her speech, Blank reminded us that this progression within Saudi Arabia helps the U.S. expand trade and economic cooperation across our borders. As our 22nd largest market worldwide, Saudi Arabia’s rapidly expanding population and industrial base will continue to provide investment and employment opportunities for American citizens. Last year alone, Saudi Arabia supported more than 1,000 American companies, including some 500 small- and medium-sized businesses. Blank insisted that partnering with Saudi Arabia will be conducive to meeting President Obama’s National Export Initiative goal of doubling exports by the end of 2014.

Transatlantic Economic Council Discussions Highlight Need for Cooperation in Innovation and Regulatory and Standards Collaboration

Secretary Bryson joins his Cabinet colleagues and senior European Officials at the TEC meeting

On Tuesday, Secretary Bryson and other U.S. government officials had a valuable conversation with senior European Union (EU) leaders on ways to cooperate and achieve the Obama administration’s National Export Initiative (NEI) goals. Since the EU is America’s largest trading partner, they are key to meeting the ambitious goal of doubling exports by the end of 2014.

The economic relationship between the EU and the United States is the largest and most dynamic in the world. The combined gross domestic product accounts for more than $30 trillion – roughly 40 percent of global GDP – and more than 800 million consumers. In 2010, bilateral trade in goods and services surpassed $873 billion. With this relationship so vital, in April 2007 the Transatlantic Economic Council (TEC) was established to provide Cabinet-level political guidance for implementation of specific work programs like intellectual property rights protection and regulatory cooperation.

Tuesday’s discussions made it clear that both the United States and the EU recognize innovation to be the main driving force for continuing this economic success and creating more jobs. In his comments, Secretary Bryson noted that the innovations created through the partnerships of American and European companies can be a greater catalyst for new jobs than innovation done without such collaboration. The Commerce Department is currently working tirelessly in that vein, developing transatlantic links between companies and research centers.

New Friendships and New Opportunities to Do Business in Brazil

Under Secretary of Commerce for International Trade Francisco J. Sánchez inaugurating the U.S. Pavilion at the Offshore Technologies Conference in Rio de Janeiro, Brazil

Guest blog post by Francisco Sánchez, Under Secretary for International Trade, International Trade Administration

Today I had the honor of inaugurating the U.S. Pavilion at the Offshore Technologies Conference in Rio de Janeiro, Brazil. The pavilion is giving more than 80 U.S. firms the opportunity to exhibit their products and services to potential buyers in Brazil and elsewhere in the Western Hemisphere.  The pavilion also supports a Department of Commerce–certified trade mission that was organized by the state of Louisiana along with that state’s Committee of 100 for Economic Development.

Why Brazil? There are a lot of reasons for U.S. companies to look for business here, especially in the energy sector. Economically, Brazil is on the rise. It is the world’s seventh largest economy and in 2010 posted a real GDP growth rate of 7.5 percent. This strong growth is sure to continue in the long-term. One factor in that growth will be Brazil’s oil and gas sector, buoyed by the recent discovery of offshore oil reserves in the Santos Basin. The discovery of these reserves is good news for the United States—both for the potential market it represents for U.S. sellers of energy products, technologies, and services as well as for the likelihood that that it will make Brazil a stable and secure source of energy for the United States in the future.

Acting Secretary Blank Meets with Travel and Tourism Advisory Board and Announces the Latest Data on International Visitation and Visitor Expenditures

This morning Acting Commerce Secretary Rebecca Blank met with key business leaders at the final meeting of the Commerce Department’s Travel and Tourism Advisory Board to discuss the President’s plan to create jobs across America, highlighting the essential role of the travel and tourism industry to American jobs and the American economy.  She announced that international visitors spent a record-setting $13.3 billion on travel to, and tourism-related activities within, the United States during the month of July – $1.8 billion or 15 percent more than was spent in July 2010.

The travel and tourism industry accounts for 25 percent of exports in services and 7 percent of all U.S. exports. Travel and tourism is one the industries targeted to help grow jobs across America and achieve the goal of doubling exports through President Obama’s National Export Initiative (NEI).   The Board meeting highlighted collaboration between the federal government and the private sector to address policy issues to help increase legitimate international travel to the United States.

The United States Travel and Tourism Advisory Board is the premier source of industry advice to the Secretary of Commerce.  The Board has met five times throughout their charter term, providing industry input on travel facilitation, airport security, marketing, communications, research and data and energy policy. It has been rechartered and is accepting applications for the next board - deadline is Friday.

Resources for Manufacturers - A Month in Review

All month long, Commerce.gov highlighted programs, resources and efforts made to help American manufacturers grow faster and become more competitive. Why? Because the manufacturing sector has been a main driver of the economic recovery over the past two years, with over 230,000 jobs added since the beginning of 2010. The manufacturing sector currently employs over 11 million Americans, providing good-paying jobs for millions of families and serving as the backbone of communities across the country – a brighter future for American manufacturers will mean a brighter future for the American economy.

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