(May 18, 2011) As we celebrate the nationally observed World Trade Week, it is clear that international trade is a continuing bright spot in the economic landscape.
In 2010, California exports totaled $143 billion, according to the U.S. Department of Commerce. This was an increase from $120 billion in 2009. California maintained its perennial position as a top exporting state, exporting to 226 foreign economies.
Exports from California accounted for nearly 11 percent of total U.S. exports, with Mexico, Canada, China, Japan, and South Korea being the state’s top trading partners. In the first half of 2011, the world economy has had many obstacles to this recovery. With the devastating earthquakes and tsunamis in many significant areas of the world, and the severe weather affecting many parts of the U.S., it is clear how interconnected international trade has become within our society.
Trade Agreements Help
Because roughly 95 percent of the potential customers for U.S. goods and services live outside our borders, increasing exports will generate critical domestic economic growth.
Agreements like the proposed U.S.-Korea Free Trade Agreement (FTA), U.S.-Colombia FTA and U.S.-Panama FTA ensure that the United States may continue to gain access to world markets, which will result in an improved economy and additional employment of Americans.
All these agreements are critical elements of the U.S. strategy to liberalize trade through multilateral, regional and bilateral initiatives. Passage of these FTAs will mean the elimination of billions of dollars in tariffs for U.S. exports, as well as increased market visibility that will benefit California and the United States as a whole.
National Export Initiative
In 2010, President Obama signed an Executive Order, the National Export Initiative, instructing the federal government to increase export promotion. This was a follow-up on the President’s 2010 State of the Union address where he called for a new National Export Initiative (NEI) to double U.S. exports and support two million new jobs.
he NEI brings together the Office of the U.S. Trade Representative, the U.S. Commerce Department, the U.S. Small Business Administration, the Export-Import Bank and other federal agencies to help more Americans succeed through trade.
The NEI is focused on three key areas:
- A more robust effort by the administration to expand its trade advocacy in all its forms, especially for small and medium-sized enterprises.
- Improving access to credit with an emphasis on small and medium-sized businesses that want to export.
- Continuing the rigorous enforcement of international trade laws to help remove barriers that prevent U.S. companies from getting free and fair access to foreign markets.
As President Obama stated, “Boosting America’s exports strengthens our economic growth and supports millions of good, high-paying American jobs. That’s why I set a goal during my State of the Union address to double our exports over the next five years. Since then, my administration has worked to improve advocacy for our exporters, remove trade barriers, and enforce trade rules in an effort to ensure that the benefits of global trade are broadly shared.”
International Commerce
While the U.S. House of Representatives considers the FTAs with South Korea, Colombia, and Panama, the California Chamber of Commerce and other supporters of the agreements will continue to fight for their approval and upholding the nation’s international obligations.
In addressing the International Trade Association in April, U.S. Trade Representative Ron Kirk stated: “We are working to meet President Obama’s National Export Initiative goal of doubling exports by the end of 2014. I’m pleased to report our efforts are getting results. Exports were up 17 percent last year. Increased exports have contributed to 13 straight months of overall private sector job growth, which has added a total of 1.8 million overall private sector jobs.”
The CalChamber supports expansion of international trade and investment, fair and equitable market access for California products abroad, and elimination of disincentives that impede the international competitiveness of California business.
Susan Corrales-Diaz, chair of the California Chamber of Commerce Council for International Trade, is president of Systems Integrated in Orange.