New National Export Initiative Focuses on Advocacy, Financing, and Enforcement
On February 4, 2010, Commerce Secretary Locke unveiled details of the President's new National Export Initiative at the National Press Club. According to Secretary Locke, the NEI represents the first time the U.S. will have a government-wide export promotion strategy with focused attention from the President and the Cabinet.
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(President Obama announced the National Export Initiative (NEI) during this State of the Union address. NEI aims to double U.S. exports over the next five years.)
NEI Focuses on Advocacy, Access to Credit, and Enforcement
The NEI is focused on three areas:
Advocacy - A stronger effort by the Administration to expand its trade advocacy in all its forms, especially for small- and medium-sized enterprises. This effort includes educating U.S. companies about opportunities overseas, directly connecting them with new customers and advocating more forcefully for their interests.
Financing - Improving access to credit with a focus on small- and medium-sized businesses that want to export.
Enforcement - Continuing the rigorous enforcement of international trade laws to help remove barriers that prevent U.S. companies from accessing foreign markets.
Advocacy
NEI Creates Export Promotion Cabinet Which Will Report to President
The NEI creates an Export Promotion Cabinet reporting to the President that will consist of top leaders from agencies that can contribute to this effort, including from the Commerce, State and Treasury Departments, the U.S. Trade Representative (USTR), the Small Business Administration, the Export Import (Ex-Im) Bank and the U.S. Department of Agriculture.
Within 180 days, all of the agencies in the Export Cabinet will be responsible for submitting a coordinated, detailed plan to the President about how they will collectively enhance U.S. exports.
ITA is Set to Launch 12-Month Program to Create U.S. Jobs
In February 2010, the ITA is set to launch a 12-month program to help create jobs in the U.S. by: (i) identifying new markets for existing U.S. exporters; (ii) increasing the number of foreign buyers to U.S. trade shows; (iii) working with private sector partners to increase exporting through the market development cooperator grant program; and (iv) by getting more clean energy companies involved in promising new markets.
CommerceConnect portal to be launched. In the coming months, the ITA will be launching a virtual CommerceConnect Web site, which will serve as a portal for businesses to access the full array of Commerce Department and other federal government services available to them.
Financing
Presdident Calls on Ex-Im Bank to Increase Financing by 50% in 2010
According to the Commerce Department, the President has called upon the Ex-Im Bank (which provides financing when private banks are unwilling or unable) to increase its financing available for small- and medium-size businesses from $4 billion to $6 billion over the next year. The 2011 budget also allocates additional money to help the Ex-Im Bank administer its expanded efforts.
Repaid TARP money to be redirected to small business lending. The Ex-Im Bank's activity will dovetail with the administration's other credit expansion efforts, including President Obama's recent proposal to redirect $30 billion in repaid TARP loans to boost lending to small businesses.
FY 2011 Budget Requests 20% Increase for ITA
The President's FY 2011 budget requests a 20% increase for the International Trade Administration. With that funding, the ITA intends to bring on as many as 328 trade experts - mostly in foreign countries - to advocate for U.S. companies.
The 2011 budget also will allow ITA to (i) put a special focus on increasing the number of small- and medium-sized businesses exporting to more than one market by 50 percent over the next five years; (ii) increase their presence in emerging high-growth markets like China, India and Brazil; and (iii) develop a comprehensive strategy to identify market opportunities in fast-growing sectors like environmental goods and services, renewable energy, healthcare and biotechnology
Enforcement
USTR to Open Markets Through TPP and Address Concerns with Pending FTAs
The NEI is also going to focus on the barriers that prevent U.S. companies from getting access to foreign markets.
The USTR is working towards a Doha Round that provides U.S. exporters new market access opportunities. The USTR is also going to be opening markets in key growth areas such as Asia with the Trans Pacific Partnership (TPP). At the same time, USTR will improve enforcement of existing international trade law and address the outstanding concerns with pending free trade agreements.
According to Secretary Locke, the U.S. is committed to a rules-based trading system that gives foreign countries access to the U.S. market, and where the U.S. is treated the same in their countries. That means: (i) enforcing U.S. trade laws; (ii) combating unfair tariff and non-tariff barriers; and (iii) cracking down on practices that harm U.S. companies, like the theft of our intellectual property.
Secretary Locke's remarks (dated 02/04/10) available at http://www.commerce.gov/NewsRoom/SecretarySpeeches/PROD01_008893.
Commerce Department press release (dated 02/04/10) available at http://www.commerce.gov/NewsRoom/PressReleases_FactSheets/PROD01_008895.