Commerce Secretary Gary Locke's spacious, wood-paneled office features a working fireplace, elegant artwork and other luxurious touches befitting one of the federal government's top economic officials.
More unusual is the nearly 60-foot-long Chinese dragon kite that hovers over his desk. The piece is not just a nod to the heritage of the first Chinese American to hold the top Commerce Department job but also evidence of Locke's hands-on style - aides said he came in one weekend and hung it himself.
It is an approach Locke has taken to running the sprawling department, which plays a crucial role in the Obama administration's plans for fixing the badly broken economy.
Since Locke took office in March 2009, he has earned a reputation as the type of manager eager to know details and wring out new efficiencies. He has pushed the Patent and Trademark Office to shorten the time it takes to get a patent, from 34 months to 20 months. He cajoled the Economic Development Administration, which makes business-development grants to distressed communities, to streamline its approval process. And he brought the 2010 Census in 25 percent under budget, saving taxpayers $1.9 billion.
But those management feats pale next to the challenge he faces as one of the key figures in implementing President Obama's pledge to double U.S. exports within five years.
The expansion of exports would mean 2 million new jobs, officials calculate, and with the nation desperate for new sources of employment growth, the mission is urgent.
Even before the housing crash and deep recession, the nation's economic growth was built on a flawed foundation of asset bubbles and excessive consumer debt, Locke said. Coupled with growth driven by innovation in areas such as renewable energy and high-quality manufacturing, he said, exports could form the basis for a new prosperity.
"Clearly we need to export more as a country as part of our economic recovery," Locke said.
The export goal is ambitious. Countries such as China and India, once thought of mostly as sources of cheap labor, are developing increasingly sophisticated manufacturing capabilities.
Still, Locke said, the potential for expanding U.S exports is plain.
Only 1 percent of U.S. companies export products at all, and of those, 58 percent export to just one country, most frequently Canada or Mexico, he said.
"If we can just help those firms export to one or two more countries, we would be able to increase exports exponentially," he said. In 2010, he noted, U.S. exports increased by 17 percent. The growth was broad-based, led by increases in exports of industrial supplies and materials, machinery and food.
For Locke, all of this plays into his prior experience. During the two terms he served as governor of Washington - home to global giants such as Microsoft and Boeing - trade with China more than doubled.
After leaving the governorship, Locke was a partner in the Seattle office of the law firm Davis Wright Tremaine. There, his work focused on helping U.S. companies break into international markets.
"I'm trying to bring some of those lessons learned" to the Commerce Department, Locke said.
He noted that "Made in the USA" is a phrase that still has clout around the world. "There is a huge hunger and demand for U.S. products," he said.
In its first two years, the Obama administration has earned a reputation in some quarters for being hostile to business.
Some business leaders have complained that the administration has demonized them in its rhetoric while hamstringing them with new environmental, health-care and financial industry regulations.
Locke, however, says the tension has not been obvious in his job, which requires constant interaction with business leaders.
In 2010, Commerce coordinated 31 trade missions in 31 countries with 368 companies. Participating companies anticipate $2 billion in increased exports from the missions, the department says. In 2011, Locke is scheduled to lead four trade missions.
Locke was not the president's first choice to head Commerce. He got the job only after New Mexico Gov. Bill Richardson (D) and New Hampshire Sen. Judd Gregg (R), withdrew; Richardson cited an investigation of state contracting, and Gregg voiced his political differences with the president.
Still, Locke was eager to take on the challenge.
"I wanted to help the president turn around the economy," he said.
"It has taken the country many years to get to this sorry state of affairs, and we will not be able to turn it around overnight."
Even so, the process has proven more arduous than many people expected. While the overall economy is expanding, job growth has been anemic and the national unemployment rate has hovered close to 10 percent for a year.
Locke, however, says the administration is on the right track with its heavy investments in green energy, education and health care.
"It is almost like building the foundation of a house or an office tower," he said. "All the foundation work takes a long, long time. You don't really see it. It is all happening below the street level. . . . After that, then things really begin to take off."
By Michael A. Fletcher
Washington Post Staff Writer
http://www.washingtonpost.com/wp-dyn/content/article/2011/01/02/AR2011010203214.html
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Showing posts with label us exports. Show all posts
Showing posts with label us exports. Show all posts
Wednesday, January 5, 2011
Sunday, November 7, 2010
US - India Transactions
As part of the National Export Initiative, President Obama noted that India-with its tremendous economic growth and its large and growing middle class -is a key market for U.S. exports.
Those exports are generating jobs in every corner of the United States and across every major sector. These involve some of our country's largest companies, but also an increasing number of small and medium-sized enterprises.
On the margins of the President's trip, trade transactions were announced or showcased, exceeding $14.9 billion in total value with $9.5 billion in U.S. export content, supporting an estimated 53,670 U.S. jobs.
These cross-border collaborations, both public and private, underpin the expanding U.S.-India strategic partnership, contributing to economic growth and development in both countries.
The following list of deals and details has been quoted verbatim from the official White House statement:
Heavy Transport Aircraft: The Boeing Company and the Indian Air Force have reached preliminary agreement on the purchase of 10 C-17 Globemaster III military transport aircraft, and are now in the process of finalizing the details of the sale. Once all have been delivered, the Indian Air Force will be the owner and operator of the largest fleet of C-17s outside of the United States. Boeing, headquartered in Chicago, Illinois, is the aircraft manufacturer. Boeing reports that each C-17 supports 650 suppliers across 44 U.S. states and that this order will support Boeing’s C-17 production facility in Long Beach, California, for an entire year. This transaction is valued at approximately $4.1 billion, all of which is U.S. export content, supporting an estimated 22,160 jobs.
Engine Sale for the Light Combat Aircraft: On October 1, the General Electric Company, headquartered in Fairfield, Connecticut, was declared the lowest bidder and selected to negotiate a contract to provide the Indian Aeronautical Development Agency with 107 F414 engines to be installed on the Tejas light combat aircraft. Upon finalizing the contract, General Electric’s facility in Lynn, Massachusetts, and other sites across the United States will be positioned to export almost one billion dollars in high technology aerospace products. This transaction is tentatively valued at approximately $822 million, all of which is U.S. export content, supporting an estimated 4,440 jobs.
Commercial Aircraft Sale: Boeing Company, headquartered in Chicago, Illinois, and SpiceJet, a leading private airline in India, concluded a definitive agreement for the sale of 30 B737-800 commercial aircraft. SpiceJet currently operates 22 Boeing aircraft and has several 737 deliveries remaining from previous agreements. This new agreement will enable SpiceJet to offer more domestic routes and to begin offering international flights to neighboring countries. This transaction is valued at approximately $2.7 billion, based on catalogue prices, with an estimated $2.4 billion in U.S. export content, supporting an estimated 12,970 jobs.
Gas and Steam Turbine Sale: The General Electric Company, headquartered in Fairfield, Connecticut, was selected to supply six advanced class 9FA gas turbines and three steam turbines for the 2,500-megawatt Samalkot power plant expansion to be constructed by Reliance Power Ltd., a division of the Reliance Anil Dhirubhai Ambani Group, one of the largest conglomerates in India. General Electric purchases equipment from 240 suppliers across the United States—an estimated 14 percent of which are small- and medium-sized enterprises—for every 9FA gas-fired turbine, which are assembled in Greenville, South Carolina. The combined equipment and maintenance contracts are valued at approximately $750 million, with an estimated $491 million in U.S. export content, supporting an estimated 2,650 jobs.
Reliance Power and U.S. Ex-Im Bank Agreement: Reliance Power Ltd., the flagship company of the Reliance Anil Dhirubhai Ambani Group, and the Export – Import Bank of the United States announced a Memorandum of Understanding (MOU). This MOU will indicate Ex-Im Bank’s willingness to provide up to $5 billion in financial support to Reliance Power for the purchase of U.S. goods and services to be used in the development of up to 8,000 megawatts of gas-fired electricity generating units and up to 900 megawatts of renewable (solar and wind) energy facilities.
Diesel Locomotive Manufacturing Venture: The United States has worldwide leaders in diesel locomotive manufacturing, and the Indian Ministry of Railways announced the prequalification of the sole two bidders—GE Transportation (Erie, Pennsylvania) and Electro-Motive Diesel (LaGrange, Illinois)—for a venture to manufacture and supply of 1,000 diesel locomotives over 10 years. The estimated U.S. content of this contract is expected to exceed $1B.
Motorcycle Assembly Plant: Harley-Davidson Motor Company, headquartered in Milwaukee, Wisconsin, announced that preparations are underway to open a new plant in India for the assembly of Harley-Davidson motorcycles from U.S.-built “complete knock-down” kits. This investment by the company entails job creation in both the United States and India, and it will allow the company to reduce the tariff burden on its motorcycles for sale in the Indian market, driving sales growth by making its motorcycles more accessible to Indian consumers.
Sale of U.S. Mining Equipment and Related Support Equipment: On October 21, the Export – Import Bank of the United States announced the approval of more than $900 million in export finance guarantees to Sasan Power Ltd., a subsidiary of Reliance Power Ltd., supporting the sale of U.S. mining equipment and services from Bucyrus International of South Milwaukee, Wisconsin, and other U.S. vendors, in association with the 3,960-megawatt coal-fired Sasan power plant in Madhya Pradesh, India. This financial commitment supports $641 million in U.S. export content, supporting an estimated 3,460 jobs.
Tunneling Equipment for Underground Water Channel: On July 22, Robbins Company, headquartered in Solon, Ohio, announced an agreement with UNITY-IVRCL, a large infrastructure engineering and construction conglomerate, to provide tunnel-boring machines, conveyer equipment, and associated technical services for the construction of tunnels to convey water for the city of Mumbai. Separately, through a contract signed in 2008 with Jaiprakash Associates, a large infrastructure conglomerate, the Robbins Company is already supplying high technology tunnel-boring machines and technical assistance to bore some of the longest underground tunnels in the world underneath a protected tiger sanctuary in Andhra Pradesh, which will increase irrigation for the production of cotton and other agricultural products. The Mumbai contract alone is valued at $10 million, with $7 million in U.S. export content, supporting an estimated 35 jobs.
Maharashtra Homeland Security Pilot Projects: Palantir Technologies, a small Silicon Valley software development firm, announced a strategic partnership agreement with the Maharashtra State Police, a law enforcement agency in India, to conduct a pilot program, whereby Palantir’s end-to-end analytical software platform will be used on a trial basis to identify and alert authorities to security threats in order to help keep the citizens of Mumbai and Maharashtra safe.
Medanta Duke Research Institute (MDRI): Duke Medicine, located in Durham, North Carolina, one of the leading academic health systems in the United States, and Medanta Medicity, located in Gurgaon, Haryana, a hospital and medical research complex, are announcing a joint venture agreement to launch the MDRI, a proof-of-concept clinical research facility within Medanta’s hospital. Duke Medicine will provide scientific and operational leadership, while Medanta will contribute financial resources and clinical and operational services. Duke Medicine also will be partnering with Jubilant Life Sciences, headquartered in Uttar Pradesh, to conduct research studies and co-develop promising discoveries, with significant funding and in-kind support provided by Jubilant. Subsequent commercialization is expected to result in licensing revenue for Duke Medicine.
Long-range Antenna System for Rural Telecommunications: SPX Communication Technology, a division of SPX Corporation operating out of Raymond, Maine, is in the final phase of the pilot deployment of its long-range antenna system with two leading Indian mobile operators. This innovative technology has been shown to offer a significantly greater coverage area. Once implemented, it is expected to create significant economies of scale, thereby improving the economic viability of rural wireless networks and making wireless communications available for people who either could not afford service or who live in areas that lack coverage. The value of the initial trial equipment is expected to generate approximately $1 million, with 100 percent U.S. export content, supporting an estimated 5 jobs.
Production Equipment for the Manufacture of Pre-fabricated Housing: Spancrete Machinery Corporation, a family-owned business in Waukesha, Wisconsin, announced the sale of six sets of its hollow core, precast production equipment, including installation, training, and after-sales support, to Hindustan Prefab Limited, a state-owned company within the Indian Ministry of Housing and Poverty Alleviation. The production equipment will be used to manufacture inexpensive, prefabricated housing on a mass scale in India. Spancrete also is working with Somat Engineering, Inc., from Detroit, Michigan, and their affiliate, SP Infrastructure India Ltd., in New Delhi. This transaction is valued at approximately $35 million, all of which is U.S. export content. Based on the company’s estimates, the transaction will support 30 jobs.
Cell Phone Rollout for Small Indian Businesses: Intuit, a company headquartered in Mountain View, California, which serves millions of small businesses worldwide, will launch a new mobile and web-based marketing service in partnership with Nokia, called “Intuit GoConnect”. This innovative technology will help Indian micro and small businesses grow and thrive by bringing customer management tools to the entrepreneur, improving the way they communicate with their customers in an increasingly mobile world.
The Unique Identification Project: L-1 Identity Solutions, headquartered in Stamford, Connecticut, and another U.S.-headquartered company, lead two of the three vendor consortia, which have been prequalified by the Unique Identity Authority of India for the first phase of an effort to register Indian residents with a 12-digit unique number using biometric identifiers. Unprecedented in scale, seeking to register 1.2 billion Indian residents, the Unique Identification program aims to enhance delivery of government services in India.
Sale of Precision Measurement Instruments for Fuel Cell Research: Advanced Materials Corporation (AMC), a small, six-person firm in Pittsburgh, Pennsylvania, received an order to supply a specially-designed Pressure-Composition Isotherm Measurement Instrument to the Banaras Hindu University (BHU) in Varanasi, India. BHU will utilize AMC’s instrument to test fuel cell applications, as part of an Indian central government research program.
Trace Explosive Detection Equipment: Implant Sciences, a small company based in Wilmington, Massachusetts, signed a contract with the Ministry of Defence in January to supply its Quantum Sniffer H-150, trace detection devices to be used by the Indian Army to detect the presence of explosive, bomb-making materials that could be used in a terrorist attack. The company announced that the equipment will be ready for pre-dispatch inspection and delivery in November. The transaction is valued at approximately $6 million, all of which is U.S. export content, supporting an estimated 30 jobs.
VIP Helicopter Sale: On August 25, Bell Helicopter, based in Hurst, Texas, signed a purchase agreement with Span Air, a private air charter company, for the sale of its first Bell Model 429 corporate VIP helicopter in India. Span Air has a second order slated for delivery in mid-2011. Bell Helicopter recently sold its 100th helicopter in India.
Sales of Pre-owned Refurbished Healthcare Equipment: Skelley Medical, a rural New Hampshire-based company, sells refurbished medical equipment to Indian hospitals in second and third tier cities through partnerships with various distributors in India. Skelley announced plans to open an after-sales service facility in Mumbai as part of a new venture with Triage Systems, a Mumbai-based Indian medical equipment distributor. This facility will service medical equipment purchased by their Indian hospital customers.
Monitoring Equipment for Greening Buildings: Noveda Technologies, a small start-up company in Branchburg, New Jersey, is finalizing a new venture with Chennai-based Wysine Technology to jointly develop and market a new solution for web-based, real-time energy monitoring for “greening” buildings.
Dredges for Maharashtra Maritime Board: Ellicott Dredges, a small company based in Baltimore, Maryland, announced the sale of two cutter suction dredges to the Maharashtra Maritime Board, a Maharashtra government entity. The equipment will be utilized to dredge a fisherman’s port and various tributaries in the state of Maharashtra
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Those exports are generating jobs in every corner of the United States and across every major sector. These involve some of our country's largest companies, but also an increasing number of small and medium-sized enterprises.
On the margins of the President's trip, trade transactions were announced or showcased, exceeding $14.9 billion in total value with $9.5 billion in U.S. export content, supporting an estimated 53,670 U.S. jobs.
These cross-border collaborations, both public and private, underpin the expanding U.S.-India strategic partnership, contributing to economic growth and development in both countries.
The following list of deals and details has been quoted verbatim from the official White House statement:
Heavy Transport Aircraft: The Boeing Company and the Indian Air Force have reached preliminary agreement on the purchase of 10 C-17 Globemaster III military transport aircraft, and are now in the process of finalizing the details of the sale. Once all have been delivered, the Indian Air Force will be the owner and operator of the largest fleet of C-17s outside of the United States. Boeing, headquartered in Chicago, Illinois, is the aircraft manufacturer. Boeing reports that each C-17 supports 650 suppliers across 44 U.S. states and that this order will support Boeing’s C-17 production facility in Long Beach, California, for an entire year. This transaction is valued at approximately $4.1 billion, all of which is U.S. export content, supporting an estimated 22,160 jobs.
Engine Sale for the Light Combat Aircraft: On October 1, the General Electric Company, headquartered in Fairfield, Connecticut, was declared the lowest bidder and selected to negotiate a contract to provide the Indian Aeronautical Development Agency with 107 F414 engines to be installed on the Tejas light combat aircraft. Upon finalizing the contract, General Electric’s facility in Lynn, Massachusetts, and other sites across the United States will be positioned to export almost one billion dollars in high technology aerospace products. This transaction is tentatively valued at approximately $822 million, all of which is U.S. export content, supporting an estimated 4,440 jobs.
Commercial Aircraft Sale: Boeing Company, headquartered in Chicago, Illinois, and SpiceJet, a leading private airline in India, concluded a definitive agreement for the sale of 30 B737-800 commercial aircraft. SpiceJet currently operates 22 Boeing aircraft and has several 737 deliveries remaining from previous agreements. This new agreement will enable SpiceJet to offer more domestic routes and to begin offering international flights to neighboring countries. This transaction is valued at approximately $2.7 billion, based on catalogue prices, with an estimated $2.4 billion in U.S. export content, supporting an estimated 12,970 jobs.
Gas and Steam Turbine Sale: The General Electric Company, headquartered in Fairfield, Connecticut, was selected to supply six advanced class 9FA gas turbines and three steam turbines for the 2,500-megawatt Samalkot power plant expansion to be constructed by Reliance Power Ltd., a division of the Reliance Anil Dhirubhai Ambani Group, one of the largest conglomerates in India. General Electric purchases equipment from 240 suppliers across the United States—an estimated 14 percent of which are small- and medium-sized enterprises—for every 9FA gas-fired turbine, which are assembled in Greenville, South Carolina. The combined equipment and maintenance contracts are valued at approximately $750 million, with an estimated $491 million in U.S. export content, supporting an estimated 2,650 jobs.
Reliance Power and U.S. Ex-Im Bank Agreement: Reliance Power Ltd., the flagship company of the Reliance Anil Dhirubhai Ambani Group, and the Export – Import Bank of the United States announced a Memorandum of Understanding (MOU). This MOU will indicate Ex-Im Bank’s willingness to provide up to $5 billion in financial support to Reliance Power for the purchase of U.S. goods and services to be used in the development of up to 8,000 megawatts of gas-fired electricity generating units and up to 900 megawatts of renewable (solar and wind) energy facilities.
Diesel Locomotive Manufacturing Venture: The United States has worldwide leaders in diesel locomotive manufacturing, and the Indian Ministry of Railways announced the prequalification of the sole two bidders—GE Transportation (Erie, Pennsylvania) and Electro-Motive Diesel (LaGrange, Illinois)—for a venture to manufacture and supply of 1,000 diesel locomotives over 10 years. The estimated U.S. content of this contract is expected to exceed $1B.
Motorcycle Assembly Plant: Harley-Davidson Motor Company, headquartered in Milwaukee, Wisconsin, announced that preparations are underway to open a new plant in India for the assembly of Harley-Davidson motorcycles from U.S.-built “complete knock-down” kits. This investment by the company entails job creation in both the United States and India, and it will allow the company to reduce the tariff burden on its motorcycles for sale in the Indian market, driving sales growth by making its motorcycles more accessible to Indian consumers.
Sale of U.S. Mining Equipment and Related Support Equipment: On October 21, the Export – Import Bank of the United States announced the approval of more than $900 million in export finance guarantees to Sasan Power Ltd., a subsidiary of Reliance Power Ltd., supporting the sale of U.S. mining equipment and services from Bucyrus International of South Milwaukee, Wisconsin, and other U.S. vendors, in association with the 3,960-megawatt coal-fired Sasan power plant in Madhya Pradesh, India. This financial commitment supports $641 million in U.S. export content, supporting an estimated 3,460 jobs.
Tunneling Equipment for Underground Water Channel: On July 22, Robbins Company, headquartered in Solon, Ohio, announced an agreement with UNITY-IVRCL, a large infrastructure engineering and construction conglomerate, to provide tunnel-boring machines, conveyer equipment, and associated technical services for the construction of tunnels to convey water for the city of Mumbai. Separately, through a contract signed in 2008 with Jaiprakash Associates, a large infrastructure conglomerate, the Robbins Company is already supplying high technology tunnel-boring machines and technical assistance to bore some of the longest underground tunnels in the world underneath a protected tiger sanctuary in Andhra Pradesh, which will increase irrigation for the production of cotton and other agricultural products. The Mumbai contract alone is valued at $10 million, with $7 million in U.S. export content, supporting an estimated 35 jobs.
Maharashtra Homeland Security Pilot Projects: Palantir Technologies, a small Silicon Valley software development firm, announced a strategic partnership agreement with the Maharashtra State Police, a law enforcement agency in India, to conduct a pilot program, whereby Palantir’s end-to-end analytical software platform will be used on a trial basis to identify and alert authorities to security threats in order to help keep the citizens of Mumbai and Maharashtra safe.
Medanta Duke Research Institute (MDRI): Duke Medicine, located in Durham, North Carolina, one of the leading academic health systems in the United States, and Medanta Medicity, located in Gurgaon, Haryana, a hospital and medical research complex, are announcing a joint venture agreement to launch the MDRI, a proof-of-concept clinical research facility within Medanta’s hospital. Duke Medicine will provide scientific and operational leadership, while Medanta will contribute financial resources and clinical and operational services. Duke Medicine also will be partnering with Jubilant Life Sciences, headquartered in Uttar Pradesh, to conduct research studies and co-develop promising discoveries, with significant funding and in-kind support provided by Jubilant. Subsequent commercialization is expected to result in licensing revenue for Duke Medicine.
Long-range Antenna System for Rural Telecommunications: SPX Communication Technology, a division of SPX Corporation operating out of Raymond, Maine, is in the final phase of the pilot deployment of its long-range antenna system with two leading Indian mobile operators. This innovative technology has been shown to offer a significantly greater coverage area. Once implemented, it is expected to create significant economies of scale, thereby improving the economic viability of rural wireless networks and making wireless communications available for people who either could not afford service or who live in areas that lack coverage. The value of the initial trial equipment is expected to generate approximately $1 million, with 100 percent U.S. export content, supporting an estimated 5 jobs.
Production Equipment for the Manufacture of Pre-fabricated Housing: Spancrete Machinery Corporation, a family-owned business in Waukesha, Wisconsin, announced the sale of six sets of its hollow core, precast production equipment, including installation, training, and after-sales support, to Hindustan Prefab Limited, a state-owned company within the Indian Ministry of Housing and Poverty Alleviation. The production equipment will be used to manufacture inexpensive, prefabricated housing on a mass scale in India. Spancrete also is working with Somat Engineering, Inc., from Detroit, Michigan, and their affiliate, SP Infrastructure India Ltd., in New Delhi. This transaction is valued at approximately $35 million, all of which is U.S. export content. Based on the company’s estimates, the transaction will support 30 jobs.
Cell Phone Rollout for Small Indian Businesses: Intuit, a company headquartered in Mountain View, California, which serves millions of small businesses worldwide, will launch a new mobile and web-based marketing service in partnership with Nokia, called “Intuit GoConnect”. This innovative technology will help Indian micro and small businesses grow and thrive by bringing customer management tools to the entrepreneur, improving the way they communicate with their customers in an increasingly mobile world.
The Unique Identification Project: L-1 Identity Solutions, headquartered in Stamford, Connecticut, and another U.S.-headquartered company, lead two of the three vendor consortia, which have been prequalified by the Unique Identity Authority of India for the first phase of an effort to register Indian residents with a 12-digit unique number using biometric identifiers. Unprecedented in scale, seeking to register 1.2 billion Indian residents, the Unique Identification program aims to enhance delivery of government services in India.
Sale of Precision Measurement Instruments for Fuel Cell Research: Advanced Materials Corporation (AMC), a small, six-person firm in Pittsburgh, Pennsylvania, received an order to supply a specially-designed Pressure-Composition Isotherm Measurement Instrument to the Banaras Hindu University (BHU) in Varanasi, India. BHU will utilize AMC’s instrument to test fuel cell applications, as part of an Indian central government research program.
Trace Explosive Detection Equipment: Implant Sciences, a small company based in Wilmington, Massachusetts, signed a contract with the Ministry of Defence in January to supply its Quantum Sniffer H-150, trace detection devices to be used by the Indian Army to detect the presence of explosive, bomb-making materials that could be used in a terrorist attack. The company announced that the equipment will be ready for pre-dispatch inspection and delivery in November. The transaction is valued at approximately $6 million, all of which is U.S. export content, supporting an estimated 30 jobs.
VIP Helicopter Sale: On August 25, Bell Helicopter, based in Hurst, Texas, signed a purchase agreement with Span Air, a private air charter company, for the sale of its first Bell Model 429 corporate VIP helicopter in India. Span Air has a second order slated for delivery in mid-2011. Bell Helicopter recently sold its 100th helicopter in India.
Sales of Pre-owned Refurbished Healthcare Equipment: Skelley Medical, a rural New Hampshire-based company, sells refurbished medical equipment to Indian hospitals in second and third tier cities through partnerships with various distributors in India. Skelley announced plans to open an after-sales service facility in Mumbai as part of a new venture with Triage Systems, a Mumbai-based Indian medical equipment distributor. This facility will service medical equipment purchased by their Indian hospital customers.
Monitoring Equipment for Greening Buildings: Noveda Technologies, a small start-up company in Branchburg, New Jersey, is finalizing a new venture with Chennai-based Wysine Technology to jointly develop and market a new solution for web-based, real-time energy monitoring for “greening” buildings.
Dredges for Maharashtra Maritime Board: Ellicott Dredges, a small company based in Baltimore, Maryland, announced the sale of two cutter suction dredges to the Maharashtra Maritime Board, a Maharashtra government entity. The equipment will be utilized to dredge a fisherman’s port and various tributaries in the state of Maharashtra
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Wednesday, November 3, 2010
President Obama will underscore the importance of India as a growing market for US exports
President Obama will underscore the importance of India as a growing market for US exports - and announce some big commercial deals - when he travels to Mumbai and New Delhi next month, White House officials said yesterday.
Trade will be at the top of the agenda on the first day of the President's trip, when he meets with US and Indian business officials. Mr. Obama will deliver a major address on the commercial relationship that same day - November 6 - before the US-India Business Council.
Growing trade with India is crucial to the President's goal of doubling US exports in five years, the officials told reporters yesterday. “We believe that India has a hugely dynamic and growing market and we want to discuss opportunities for how we can deepen our economic relationship,” Deputy National Security Advisor for Strategic Communications Ben Rhodes said.
The officials declined to discuss details of the commercial agreements the President hopes to announce.
Although President Obama has lately spoken out against the “outsourcing” of US jobs overseas to countries like India, Deputy National Security Advisor for International Economic Affairs Mike Froman said the President sees tremendous potential in India for US exports.
Indian Investment
US exports have quadrupled over the last seven years to about $17 billion, while service exports have tripled to about $10 billion a year. Mr. Froman noted that Indian companies are the second-fastest-growing investors in the United States, currently supporting about 57,000 US jobs.
India would like to see a restart of negotiations on a Bilateral Investment Treaty, which remain on hold while the Administration crafts a new model BIT.
New Delhi is hoping that President Obama will use his first state visit to announce that Washington will ease export controls restricting some sales of high-technology dual-use products. The Administration officials declined to say whether an announcement is likely, saying that talks are still ongoing. But Undersecretary of State for Political Affairs William Burns noted that the Administration is in the process of updating its export controls and wants to make sure “India is treated as a partner and not as a target.”
The White House officials praised India for signing yesterday the Convention on Supplemental Compensation, which will pave the way for US companies to participate in Indian civil nuclear development under the bilateral agreement. The convention will help ensure that international standards apply and that US companies have a level playing field on which to compete, Mr. Burns said.
Washington Trade Daily
October 28, 2010
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Trade will be at the top of the agenda on the first day of the President's trip, when he meets with US and Indian business officials. Mr. Obama will deliver a major address on the commercial relationship that same day - November 6 - before the US-India Business Council.
Growing trade with India is crucial to the President's goal of doubling US exports in five years, the officials told reporters yesterday. “We believe that India has a hugely dynamic and growing market and we want to discuss opportunities for how we can deepen our economic relationship,” Deputy National Security Advisor for Strategic Communications Ben Rhodes said.
The officials declined to discuss details of the commercial agreements the President hopes to announce.
Although President Obama has lately spoken out against the “outsourcing” of US jobs overseas to countries like India, Deputy National Security Advisor for International Economic Affairs Mike Froman said the President sees tremendous potential in India for US exports.
Indian Investment
US exports have quadrupled over the last seven years to about $17 billion, while service exports have tripled to about $10 billion a year. Mr. Froman noted that Indian companies are the second-fastest-growing investors in the United States, currently supporting about 57,000 US jobs.
India would like to see a restart of negotiations on a Bilateral Investment Treaty, which remain on hold while the Administration crafts a new model BIT.
New Delhi is hoping that President Obama will use his first state visit to announce that Washington will ease export controls restricting some sales of high-technology dual-use products. The Administration officials declined to say whether an announcement is likely, saying that talks are still ongoing. But Undersecretary of State for Political Affairs William Burns noted that the Administration is in the process of updating its export controls and wants to make sure “India is treated as a partner and not as a target.”
The White House officials praised India for signing yesterday the Convention on Supplemental Compensation, which will pave the way for US companies to participate in Indian civil nuclear development under the bilateral agreement. The convention will help ensure that international standards apply and that US companies have a level playing field on which to compete, Mr. Burns said.
Washington Trade Daily
October 28, 2010
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Saturday, July 31, 2010
America as an export nation?
In debates over how to boost the flagging recovery, promoting exports isn’t usually at top of the list. But it should be. Export growth can make this recovery job-filled rather than jobless.
And the White House and allied business leaders agree. They’ve been discussing how to achieve the “new goal” that President Obama set in his last State of the Union speech: double exports over the next five years.
Beyond the usual discussion of exchange rates and trade barriers, however, any successful export strategy requires a look at where U.S. exports come from.
Chrystia Freeland moderates a Brookings Institution panel on an unexpected way to bring America out of the recession.
America’s export geography is highly concentrated in the top 100 metropolitan areas. In a new research report , we found that these population centers produced an estimated 64 percent of U.S. exports in 2008 — that’s over 62 percent of manufactured goods and 75 percent of services.
Three quarters of computer and electronics exports are manufactured in the top 100 cities. More than 80 percent of smaller service exports, such as management and consulting, film and television, computer services and insurance, are concentrated there. This is especially important because the United States has a trade surplus in commercial services — $152.5 billion in 2008. And it is poised for a quantum leap in exportable services.
The nation’s four largest exporting metros, New York, Los Angeles, Chicago and Houston, are the top performers, exporting more than $50 billion apiece in 2008. Three quarters of computer and electronics exports are manufactured in the top 100 cities.
Other major metros — Dallas, San Francisco, Boston, Philadelphia, Detroit and Seattle — are also global players. These 10 large metros generated 28 percent of national exports in 2008.
A different group of smaller and medium-sized places, like Wichita, Toledo and Greensboro are oriented toward exports in ways larger metros are not. Exports contribute more than 15 percent of gross metropolitan product in these and seven other U.S. cities, compared to the largest 100 metros’ average of 10.9 percent.
To leverage this powerful export activity, the Obama administration should connect its macro vision for export growth with the metro reality, where most of the doubling could happen. Only one percent of U.S. companies export, reflecting our vast internal market and cultural insularity. Think of the economic potential if we can make that 2 percent.
While other nations promote exports through sophisticated outreach and, in some cases, major subsidies, U.S. efforts tend to be timid and fragmented. More will be needed to help firms, particularly small ones, enter foreign markets. This can be done by expanding the President’s Export Council to include state and local leaders and revamping current export guidance and support delivery.
The U.S also needs a national freight strategy to maximize our export business. Currently, the U.S. freight system is undermined by aging infrastructure and congested transport networks. Despite rising imports and exports, the federal government and the states disperse scarce infrastructure dollars based on political rather than market returns.
The many calls from the Obama Administration, Congress, governors and mayors for a National Infrastructure Bank are long overdue. The bank would invest through public/private partnerships and aim to unclog our ports, improve passenger and freight rail, and revamp our electrical grid.
Just as the President has set an export goal for the nation, metros should set their own export goals as well.
For too long, the debate over export policy and practice has been the exclusive domain of policymakers in Washington and a narrow clique of trade constituencies. It is time to widen the circle, to include a larger portion of the business sector and the places where exporting companies can thrive.
Only then can this metropolitan nation realize its potential as an export nation.
The following is a guest post on Reuters by Bruce Katz, Emilia Istrate and Jonathan Rothwell. Mr. Katz is the editor of several books on transportation, demographics and regionalism, including “Elevate Our Cities.” Ms. Istrate is a senior research analyst with the Metropolitan Infrastructure Initiative. Mr. Rothwell is a senior research analyst at the Metropolitan Policy program focusing on urban economics, innovation, and economic opportunity. The opinions expressed are their own.
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
And the White House and allied business leaders agree. They’ve been discussing how to achieve the “new goal” that President Obama set in his last State of the Union speech: double exports over the next five years.
Beyond the usual discussion of exchange rates and trade barriers, however, any successful export strategy requires a look at where U.S. exports come from.
Chrystia Freeland moderates a Brookings Institution panel on an unexpected way to bring America out of the recession.
America’s export geography is highly concentrated in the top 100 metropolitan areas. In a new research report , we found that these population centers produced an estimated 64 percent of U.S. exports in 2008 — that’s over 62 percent of manufactured goods and 75 percent of services.
Three quarters of computer and electronics exports are manufactured in the top 100 cities. More than 80 percent of smaller service exports, such as management and consulting, film and television, computer services and insurance, are concentrated there. This is especially important because the United States has a trade surplus in commercial services — $152.5 billion in 2008. And it is poised for a quantum leap in exportable services.
The nation’s four largest exporting metros, New York, Los Angeles, Chicago and Houston, are the top performers, exporting more than $50 billion apiece in 2008. Three quarters of computer and electronics exports are manufactured in the top 100 cities.
Other major metros — Dallas, San Francisco, Boston, Philadelphia, Detroit and Seattle — are also global players. These 10 large metros generated 28 percent of national exports in 2008.
A different group of smaller and medium-sized places, like Wichita, Toledo and Greensboro are oriented toward exports in ways larger metros are not. Exports contribute more than 15 percent of gross metropolitan product in these and seven other U.S. cities, compared to the largest 100 metros’ average of 10.9 percent.
To leverage this powerful export activity, the Obama administration should connect its macro vision for export growth with the metro reality, where most of the doubling could happen. Only one percent of U.S. companies export, reflecting our vast internal market and cultural insularity. Think of the economic potential if we can make that 2 percent.
While other nations promote exports through sophisticated outreach and, in some cases, major subsidies, U.S. efforts tend to be timid and fragmented. More will be needed to help firms, particularly small ones, enter foreign markets. This can be done by expanding the President’s Export Council to include state and local leaders and revamping current export guidance and support delivery.
The U.S also needs a national freight strategy to maximize our export business. Currently, the U.S. freight system is undermined by aging infrastructure and congested transport networks. Despite rising imports and exports, the federal government and the states disperse scarce infrastructure dollars based on political rather than market returns.
The many calls from the Obama Administration, Congress, governors and mayors for a National Infrastructure Bank are long overdue. The bank would invest through public/private partnerships and aim to unclog our ports, improve passenger and freight rail, and revamp our electrical grid.
Just as the President has set an export goal for the nation, metros should set their own export goals as well.
For too long, the debate over export policy and practice has been the exclusive domain of policymakers in Washington and a narrow clique of trade constituencies. It is time to widen the circle, to include a larger portion of the business sector and the places where exporting companies can thrive.
Only then can this metropolitan nation realize its potential as an export nation.
The following is a guest post on Reuters by Bruce Katz, Emilia Istrate and Jonathan Rothwell. Mr. Katz is the editor of several books on transportation, demographics and regionalism, including “Elevate Our Cities.” Ms. Istrate is a senior research analyst with the Metropolitan Infrastructure Initiative. Mr. Rothwell is a senior research analyst at the Metropolitan Policy program focusing on urban economics, innovation, and economic opportunity. The opinions expressed are their own.
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Tuesday, July 20, 2010
U.S. exports up, but higher imports widen trade deficit
U.S. exports jumped more than 2 percent in May. But a surge in imports widened the country's trade deficit -- disappointing the effort to even out global trade flows.
The latest U.S. trade figures showed American businesses sold $152.3 billion of goods and services overseas in May, $3.5 billion more than in April.
Imports increased 2.9 percent to $194.5 billion.
The Obama administration is pushing to boost exports as a way to create jobs, and the increase was welcome news after a disappointing decline in April.
The overall widening of the country's trade deficit, however, showed how difficult it will be to rebalance the global economy so that the United States does not consume far more than it produces.
The U.S. trade deficit expanded in May to its highest level in 18 months, rising 4.8 percent to $42.3 billion, the U.S. Commerce Department reported Tuesday.
The monthly trade deficit with China alone jumped $3 billion, to $22 billion, a figure that manufacturing groups said showed that a focus on exports alone was insufficient.
The deficit represents "wealth and jobs heading overseas," said Scott Paul, executive director of the Alliance for American Manufacturing.
The trade deficit also represents a drag on overall economic growth at a time when the Federal Reserve and other analysts worry that the country's economic recovery is slowing.
By Howard Schneider Washington Post
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
The latest U.S. trade figures showed American businesses sold $152.3 billion of goods and services overseas in May, $3.5 billion more than in April.
Imports increased 2.9 percent to $194.5 billion.
The Obama administration is pushing to boost exports as a way to create jobs, and the increase was welcome news after a disappointing decline in April.
The overall widening of the country's trade deficit, however, showed how difficult it will be to rebalance the global economy so that the United States does not consume far more than it produces.
The U.S. trade deficit expanded in May to its highest level in 18 months, rising 4.8 percent to $42.3 billion, the U.S. Commerce Department reported Tuesday.
The monthly trade deficit with China alone jumped $3 billion, to $22 billion, a figure that manufacturing groups said showed that a focus on exports alone was insufficient.
The deficit represents "wealth and jobs heading overseas," said Scott Paul, executive director of the Alliance for American Manufacturing.
The trade deficit also represents a drag on overall economic growth at a time when the Federal Reserve and other analysts worry that the country's economic recovery is slowing.
By Howard Schneider Washington Post
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Friday, June 4, 2010
U.S. MANUFACTURERS TO SUPPLY FIREFIGHTING VEHICLES FOR EXPORT TO GHANA WITH EX-IM BANK BACKING
U.S. companies, including four subsidiaries of Oshkosh Corp., headquartered in Oshkosh, Wis., will supply 121 customized firefighting vehicles and related equipment for export to the Republic of Ghana, backed by a $41 million loan guarantee from the Export-Import Bank of the United States (Ex-Im Bank).
The U.S. exporter is Project Development International Inc. (PDI), a small and specialized project-management company in Dunedin, Fla.
"This deal demonstrates the solid business opportunities for U.S. exporters in sub-Saharan Africa that Ex-Im Bank can help them achieve. This large export to Ghana will help maintain American jobs at these companies and expand their market share in Africa," said Ex-Im Bank Chairman and President Fred P. Hochberg.
"The support from Ex-Im Bank was like wind under our wings during the years of development of this project. We value Ex-Im Bank's expertise and the exceptionally long repayment terms for the loan that were essential to this successful sale of quality U.S.-made firefighting equipment," PDI President James Lalumiere said.
Four Oshkosh-owned companies are participating in the export. Pierce Manufacturing Inc. in Appleton, Wis., will supply 90 pumper trucks, 10 tanker trucks and four aerial ladder trucks. Jerr-Dan Corp. in Greencastle, Pa., will supply 13 recovery trucks. Iowa Mold Tooling Co. Inc. in Garner, Iowa, is providing four service vehicles and spare parts. Oshkosh Specialty Vehicles Inc. in Harvey, Ill., is supplying four mobile breathing air compressors.
Two U.S. sub-suppliers are also participating. Bauer Compressors Inc. in Norfolk, Va., is supplying high-pressure breathing air equipment to Oshkosh Specialty Vehicles. Smeal Fire & Apparatus Co., a small business in Snyder, Neb., is providing the turntable ladders for the four Pierce aerial ladder trucks.
The export will help Oshkosh maintain employment of its highly skilled workforce in the wake of the recession of 2008-2009 that is continuing to affect domestic orders due to lagging local and state tax revenues.
"We are appreciative of the Export-Import Bank's strong support which is the first step in making this order a reality. Oshkosh looks forward to delivering 120 vehicles from four of our businesses and continued growth throughout Africa," said Tim Raupp, Oshkosh Corporation senior vice president and executive director of International Operations for Fire and Emergency.
The transaction is being financed by an Ex-Im Bank-guaranteed loan from Societe Generale in New York, N.Y. The repayment term is eight years. The credit is secured by the full faith and credit of the Republic of Ghana through its Ministry of Finance and Economic Planning.
The Ghana National Fire Service will purchase the equipment through Ghana's Ministry of Interior Service. The exports will replace existing vehicles, add new equipment for urban fire fighting and help the agency in its planned expansion of fire stations.
The principal supplier, Pierce Manufacturing Inc., was established in 1913 and has manufactured firefighting trucks and related vehicles since the 1940s. The company currently employs approximately 2,250 workers at its production facilities in Appleton, Wis., and in Bradenton, Fla.
Oshkosh Corp. designs and builds a broad range of specialty trucks, truck bodies and access equipment. Oshkosh has a workforce of more than 12,600 employees at its headquarters in Oshkosh, Wis., manufacturing operations in 11 different states and operations around the world.
PDI is a project management company established in 1980 for U.S. and international construction industries. In the last decade, the company has diversified into all aspects of planning, scheduling, and material and equipment procurement.
Ex-Im Bank, an independent, self-sustaining federal-government agency, exists to fill gaps in export financing, strengthen U.S. export competitiveness, and create and maintain U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.
In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21 percent of total authorizations. Ex-Im Bank authorized $412 million, including working capital guarantees, for U.S. exports to sub-Saharan Africa in fiscal 2009.
In the first eight months of fiscal 2010 (through April 2010), Ex-Im Bank authorized $14.7 billion in loans, guarantees and insurance - 70 percent of the total amount authorized in fiscal 2009. For more information, see Ex-Im Bank's Web site at www.exim.gov.
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
The U.S. exporter is Project Development International Inc. (PDI), a small and specialized project-management company in Dunedin, Fla.
"This deal demonstrates the solid business opportunities for U.S. exporters in sub-Saharan Africa that Ex-Im Bank can help them achieve. This large export to Ghana will help maintain American jobs at these companies and expand their market share in Africa," said Ex-Im Bank Chairman and President Fred P. Hochberg.
"The support from Ex-Im Bank was like wind under our wings during the years of development of this project. We value Ex-Im Bank's expertise and the exceptionally long repayment terms for the loan that were essential to this successful sale of quality U.S.-made firefighting equipment," PDI President James Lalumiere said.
Four Oshkosh-owned companies are participating in the export. Pierce Manufacturing Inc. in Appleton, Wis., will supply 90 pumper trucks, 10 tanker trucks and four aerial ladder trucks. Jerr-Dan Corp. in Greencastle, Pa., will supply 13 recovery trucks. Iowa Mold Tooling Co. Inc. in Garner, Iowa, is providing four service vehicles and spare parts. Oshkosh Specialty Vehicles Inc. in Harvey, Ill., is supplying four mobile breathing air compressors.
Two U.S. sub-suppliers are also participating. Bauer Compressors Inc. in Norfolk, Va., is supplying high-pressure breathing air equipment to Oshkosh Specialty Vehicles. Smeal Fire & Apparatus Co., a small business in Snyder, Neb., is providing the turntable ladders for the four Pierce aerial ladder trucks.
The export will help Oshkosh maintain employment of its highly skilled workforce in the wake of the recession of 2008-2009 that is continuing to affect domestic orders due to lagging local and state tax revenues.
"We are appreciative of the Export-Import Bank's strong support which is the first step in making this order a reality. Oshkosh looks forward to delivering 120 vehicles from four of our businesses and continued growth throughout Africa," said Tim Raupp, Oshkosh Corporation senior vice president and executive director of International Operations for Fire and Emergency.
The transaction is being financed by an Ex-Im Bank-guaranteed loan from Societe Generale in New York, N.Y. The repayment term is eight years. The credit is secured by the full faith and credit of the Republic of Ghana through its Ministry of Finance and Economic Planning.
The Ghana National Fire Service will purchase the equipment through Ghana's Ministry of Interior Service. The exports will replace existing vehicles, add new equipment for urban fire fighting and help the agency in its planned expansion of fire stations.
The principal supplier, Pierce Manufacturing Inc., was established in 1913 and has manufactured firefighting trucks and related vehicles since the 1940s. The company currently employs approximately 2,250 workers at its production facilities in Appleton, Wis., and in Bradenton, Fla.
Oshkosh Corp. designs and builds a broad range of specialty trucks, truck bodies and access equipment. Oshkosh has a workforce of more than 12,600 employees at its headquarters in Oshkosh, Wis., manufacturing operations in 11 different states and operations around the world.
PDI is a project management company established in 1980 for U.S. and international construction industries. In the last decade, the company has diversified into all aspects of planning, scheduling, and material and equipment procurement.
Ex-Im Bank, an independent, self-sustaining federal-government agency, exists to fill gaps in export financing, strengthen U.S. export competitiveness, and create and maintain U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.
In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21 percent of total authorizations. Ex-Im Bank authorized $412 million, including working capital guarantees, for U.S. exports to sub-Saharan Africa in fiscal 2009.
In the first eight months of fiscal 2010 (through April 2010), Ex-Im Bank authorized $14.7 billion in loans, guarantees and insurance - 70 percent of the total amount authorized in fiscal 2009. For more information, see Ex-Im Bank's Web site at www.exim.gov.
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Tuesday, March 30, 2010
President Obama outlines strategy to boost US exports -- and jobs
President Obama moved Thursday to create a high-level team to promote US exports, with the goal of creating 2 million jobs within the next five years.
The project will span from efforts to reduce hurdles for companies in shipping goods overseas, to adjusting trade policy with a blend of carrots (a push for new free-trade agreements) and sticks (tougher enforcement of trade rules). The near-term goal is to double US exports within five years.
"For the first time, the United States of America is launching a single, comprehensive strategy to promote American exports," Mr. Obama told the annual conference of the Export-Import Bank, an institution in Washington designed to promote US trade.
Getting that many more jobs from exports won't be easy, but new efforts on trade are very much needed, economists say. The most obvious reason is that America needs more jobs, at a time when consumer demand at home remains tepid. A second reason is that the world economy continues to become more competitive, which means that the US can't rest on its laurels as the world’s leading exporter of goods and services.
"Ninety-five percent of the world’s customers and the world’s fastest-growing markets are outside our borders. We need to compete for those customers. Because other nations are," Obama said. "We need to up our game."
Obama outlined a multipart "national export initiative":
• He signed an executive order "instructing the federal government to use every available federal resource" to boost exports. The order created an "export promotion cabinet," made up of the secretaries of State, Treasury, Agriculture, Commerce, and Labor, plus the US trade representative and other officials.
• He revived a separate body, called the President’s Export Council, and named Boeing CEO Jim McNerney and Xerox CEO Ursula Burns as co-chairs. The panel will make recommendations on trade policy.
• Multiple cabinet departments will help create a "one-stop shop" for small employers that want help identifying opportunities and setting up operations overseas. The effort would include embassies and consulates abroad, as well as agencies like the Departments of Agriculture and Commerce.
• Obama pledged to promote new free-trade agreements while also enforcing laws on the books, such as intellectual-property rights. "China moving to a more market-oriented exchange rate would make an essential contribution" to a more-balanced global economy, he said. That move could also help narrow the large gap by which US imports exceed exports.
• The administration will increase access to trade financing. Obama commended efforts by the Export-Import Bank over the past year to step up its activities when US credit markets were impaired.
In addition, Obama pledged to be a kind of salesman in chief for US companies, with him and his cabinet members plugging the virtues of "made in America" when they travel overseas. Next week, the president will take his export evangelism to Indonesia and Australia.
The announcement about export strategy came as a government report showed a narrower-than-expected trade deficit for the US in January. Imports exceeded exports by $37.3 billion, with the volume of oil and automobile imports falling for the month.
Obama first announced the goal of doubling exports within five years during his State of the Union address to Congress in January.
Some economists, running the numbers, have said it's a difficult objective to reach.
"During the last 25 years nominal exports never grew this quickly in five years; it took an average of 11 years for exports to double," economist Sven Jari Stehn wrote in an analysis for Goldman Sachs.
Hitting the goal, he estimated, would require a combination of strong global economic growth and an adjustment of the dollar's value relative to currencies such as China's yuan.
"If global real GDP grew by an above-consensus 4.5 percent during the next five years, the dollar would still need to depreciate by about 30 percent, slightly more than the largest 5-year real depreciation on record during the last 25 years," Mr. Stehn concluded.
This doesn't mean that Obama's target is unreachable, however. And efforts to boost exports and achieve a more-balanced global economy could bring benefits even if his goal isn't reached.
By Mark Trumbull, Staff writer / March 11, 2010 The Christian Science Monitor
The project will span from efforts to reduce hurdles for companies in shipping goods overseas, to adjusting trade policy with a blend of carrots (a push for new free-trade agreements) and sticks (tougher enforcement of trade rules). The near-term goal is to double US exports within five years.
"For the first time, the United States of America is launching a single, comprehensive strategy to promote American exports," Mr. Obama told the annual conference of the Export-Import Bank, an institution in Washington designed to promote US trade.
Getting that many more jobs from exports won't be easy, but new efforts on trade are very much needed, economists say. The most obvious reason is that America needs more jobs, at a time when consumer demand at home remains tepid. A second reason is that the world economy continues to become more competitive, which means that the US can't rest on its laurels as the world’s leading exporter of goods and services.
"Ninety-five percent of the world’s customers and the world’s fastest-growing markets are outside our borders. We need to compete for those customers. Because other nations are," Obama said. "We need to up our game."
Obama outlined a multipart "national export initiative":
• He signed an executive order "instructing the federal government to use every available federal resource" to boost exports. The order created an "export promotion cabinet," made up of the secretaries of State, Treasury, Agriculture, Commerce, and Labor, plus the US trade representative and other officials.
• He revived a separate body, called the President’s Export Council, and named Boeing CEO Jim McNerney and Xerox CEO Ursula Burns as co-chairs. The panel will make recommendations on trade policy.
• Multiple cabinet departments will help create a "one-stop shop" for small employers that want help identifying opportunities and setting up operations overseas. The effort would include embassies and consulates abroad, as well as agencies like the Departments of Agriculture and Commerce.
• Obama pledged to promote new free-trade agreements while also enforcing laws on the books, such as intellectual-property rights. "China moving to a more market-oriented exchange rate would make an essential contribution" to a more-balanced global economy, he said. That move could also help narrow the large gap by which US imports exceed exports.
• The administration will increase access to trade financing. Obama commended efforts by the Export-Import Bank over the past year to step up its activities when US credit markets were impaired.
In addition, Obama pledged to be a kind of salesman in chief for US companies, with him and his cabinet members plugging the virtues of "made in America" when they travel overseas. Next week, the president will take his export evangelism to Indonesia and Australia.
The announcement about export strategy came as a government report showed a narrower-than-expected trade deficit for the US in January. Imports exceeded exports by $37.3 billion, with the volume of oil and automobile imports falling for the month.
Obama first announced the goal of doubling exports within five years during his State of the Union address to Congress in January.
Some economists, running the numbers, have said it's a difficult objective to reach.
"During the last 25 years nominal exports never grew this quickly in five years; it took an average of 11 years for exports to double," economist Sven Jari Stehn wrote in an analysis for Goldman Sachs.
Hitting the goal, he estimated, would require a combination of strong global economic growth and an adjustment of the dollar's value relative to currencies such as China's yuan.
"If global real GDP grew by an above-consensus 4.5 percent during the next five years, the dollar would still need to depreciate by about 30 percent, slightly more than the largest 5-year real depreciation on record during the last 25 years," Mr. Stehn concluded.
This doesn't mean that Obama's target is unreachable, however. And efforts to boost exports and achieve a more-balanced global economy could bring benefits even if his goal isn't reached.
By Mark Trumbull, Staff writer / March 11, 2010 The Christian Science Monitor
Wednesday, November 4, 2009
Export-Import Bank Adopts Carbon Policy to Encourage Renewable Energy and Climate-Friendly Technologies
Washington, D.C. - The Export-Import Bank of the United States (Ex-Im Bank) today became the first Export Credit Agency (ECA) to adopt a comprehensive Carbon Policy to guide its support of United States exports in light of climate change concerns.
"We want to help American manufacturers produce green technology for the world. This common sense approach is good for the environment. It's good for business, and it's good for American workers," said Fred P. Hochberg, chairman and president of Ex-Im Bank.
The Carbon Policy is in keeping with the Obama Administration's commitment to help create new jobs through promotion of "green" technology.
"We look forward to working with the Export-Import Bank on implementation of their Carbon Policy," said Nancy Sutley, Chair of the White House Council on Environmental Quality. "The Board's approval of their Carbon Policy is an important step toward greater transparency and enhanced environmental stewardship."
Included in the policy is a commitment to explore ways to further improve the Bank's transparency in the tracking and reporting of CO2 emissions from projects that it supports.
As a part of this policy the Bank has established for the first time a $250 million facility to finance renewable energy exports, including solar, wind and geothermal energy.
The policy also commits the Bank to be a leader in financing of climate-friendly technologies made by American workers, including those that reduce greenhouse gas emissions and increase energy efficiency.
Ex-Im Bank also committed to advocate in the Organization for Economic Cooperation and Development (OECD) for the creation of financing incentives for low to zero CO2-emitting projects, a common methodology for evaluating and taking into account the social cost of carbon, and disincentives for high intensity fossil fuel projects. The Bank initiated its efforts involving the OECD within hours of the Carbon Policy's approval.
"Adoption of the Bank's new Carbon Policy is an important first step. As we move forward in the coming weeks we are committed to an open process to help us implement this policy by continuing to actively engage American exporters, workers and environmental advocates," Hochberg said.
The full text of the Board's Carbon Policy is available on the Ex-Im Bank website, www.exim.gov.
In October 1998 the Bank was the first ECA to track greenhouse gas emissions of projects for which it provided financing. It was also the first to publically disclose those figures.
Ex-Im Bank has historically been a leader in evaluating the environmental consequences of the projects for which it provides financing. The Bank has had environmental procedures in effect since 1993 and has been an international leader in this arena. It has vigorously promoted the adoption of common environmental standards by other export credit agencies through its activities in the OECD.
In Fiscal Year 2009, which ended September 30, the Bank authorized more than $21 billion in support of U.S. exports and associated jobs, the highest financing level since the Bank was established in 1934. The Bank also set a record for financing of U.S. small business exports at $4.36 billion.
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 75th year, helps to create and maintain U.S. jobs by financing the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans.
Original URL: http://www.exim.gov/pressrelease.cfmBC0AA512-EF10-91BF-A6F1508E016C9E5E/
Export-Import Bank of the United States
811 Vermont Avenue, N.W.
Washington, DC 20571
Tel: 1 (202) 565-3946 (EXIM) or 1 (800) 565-3946 (EXIM)
Wednesday, October 21, 2009
Bernanke Says U.S., Asia Should Reduce Distortions
Federal Reserve Chairman Ben S. Bernanke called on the U.S. to save more by cutting the federal deficit and said Asian nations should promote domestic consumption to avert a return of trade distortions that preceded the financial crisis.
“The United States must increase its national saving rate,” Bernanke said today at a San Francisco Fed conference on Asia and the global financial crisis. “The most effective way to accomplish this goal is by establishing a sustainablefiscal trajectory, anchored by a clear commitment to substantially reduce federal deficits over time.”
Group of 20 leaders pledged last month to cooperate in shifting the global economy to “sustainable and balanced growth” and, with the help of theInternational Monetary Fund, to monitor each country’s patterns of demand and supply, credit, debt and increases in reserves. Bernanke called for policies to rebalance growth with higher private and government saving in the U.S. and less reliance in Asia on exports.
“It’s important, and I think policy makers recognize we need, to develop a fiscal exit strategy which will involve a trajectory toward sustainability,” Bernanke said in response to an audience question at the Santa Barbara, California, conference. “That’s critically important in order to maintain confidence in our economy and confidence in our currency.”
Record Deficit
China’s current-account surplus fell from about 10 percent of gross domestic product in the first half of 2008 to about 6.5 percent of GDP in the first half of this year, Bernanke noted. The U.S. continues to rely on foreign investors to finance a record deficit funded in part by foreign-exchange earned through exports to the U.S.
International investors owned $3.45 trillion of Treasuries in August, up from $3.08 trillion in December. China was the biggest foreign holder of U.S. government debt with $797.1 billion. It owned $727.4 billion in December, according to Treasury data released Oct. 16.
Within the G-20 nations, “there is an understanding that relying on export-led growth has been part of the problem,” said Alan Ruskin, head of currency strategy at RBS Securities Inc. in Stamford, Connecticut. Global policy makers will have to find common ground, and that “is a lot about where the Chinese own interests lie.”
“There is definitely a strong case to be made for the appreciation of the Chinese yuan starting again,” he said.
The Fed chairman presented a chart that showed several countries most open to trade suffered the worst declines in growth relative to normal trend rates.
‘Economic Shocks’
“Tighter integration with the global economy naturally increases vulnerability to global economic shocks,” he said. It also promotes stronger economic growth, and “protectionism and the erecting of barriers to capital flows should thus be strongly resisted,” Bernanke said.
Bernanke didn’t discuss the U.S. economy or the near-term path of U.S. interest rate policy in text of his remarks. The Federal Open Market Committee next meets Nov. 3-4.
U.S. stocks rose, extending an advance in equities from Shanghai to London, while Treasuries were mixed. The Standard & Poor’s 500 Index rose 1 percent to 1,098.97 at 3:08 p.m. in New York. Yields on U.S. two-year notes rose 2 basis points to 0.967 percent, while yields on the 10-year note fell 2 basis points to 3.39 percent. A basis point is 0.01 percentage point.
Raise Interest Rates
Central bankers around the world are also discussing and acting on strategies to raise interest rates. Australia increased rates this month, the first G-20 nation to do so since the crisis intensified a year ago. The Australian and New Zealand currencies rose today versus the U.S. dollar on signs of economic strength and in anticipation of more rate increases.
Separately, the New York Fed said today it is working with market participants to refine a reverse repurchase agreement tool to help drain the record amount of cash it has added to the financial system. The district bank said the work is a matter of “prudent advance planning” and “no inference should be drawn about the timing of monetary-policy tightening.”
China’s yuan forwards rose to a 14-month high on speculation the economy’s recovery from a slump will prompt policy makers to let currency appreciation resume. The exchange rate has been kept at about 6.83 per dollar since July 2008, following a 21 percent gain in the previous three years, as the government favored a stable currency to help exporters weather a global recession.
Data due Oct. 22 will show China’s economy expanded 9 percent in the third quarter, the fastest pace since September 2008, according to the median estimate of economists surveyed by Bloomberg.
‘Distort the Mix’
“Trade surpluses achieved through policies that artificially enhance incentives for domestic saving and the production of export goods distort the mix of domestic industries and the allocation of resources, resulting in an economy that is less able to meet the needs of its own citizens in the longer term,” Bernanke said.
Bernanke said American consumption fueled by high savings rates abroad played a role in the financial crisis.
“A lot of capital flowed” into countries such as the U.S., “which would not be a problem if we had invested and managed that money appropriately,” Bernanke said in response to an audience question. “But evidently, we were not able to do that.”
‘Overwhelmed’ Risk Management
Bernanke said both private and regulatory risk-management mechanisms “were overwhelmed.”
The FOMC reiterated its pledge last month to keep the benchmark lending rate near zero “for an extended period” to boost a weak recovery that has yet to create jobs. The unemployment rate rose to 9.8 percent last month, the highest level since 1983. The economy will grow at a 2.4 percent annual pace in the final three months of the year, according to a Bloomberg News survey of economists. The unemployment rate will hit 10 percent in December, the forecasters said.
Bernanke in today’s speech didn’t engage in the debate among his colleagues on the FOMC over the pace or timing of a change in monetary policy. Fed Governor Kevin Warsh said Sept. 25 interest rates may need to rise “with greater force” than usual, while New York Fed President William Dudley said Oct. 5 the recovery’s pace “is not likely to be robust” and inflation risks are “on the downside.”
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U.S. moving to boost exports: Commerce Secretary Gary Locke
The Obama administration has made increasing U.S. exports a key part of its strategy to reduce unemployment and is moving on several fronts to do that, Commerce Secretary Gary Locke said on Wednesday.
In a wide-ranging interview, Locke said the size of the U.S. trade deficit was a concern for the Obama administration, even though it has fallen sharply this year.
Ahead of a visit to China, Locke said he would press the Chinese to lower import barriers to U.S. goods and protect the intellectual property rights of U.S. firms.
He shrugged off criticism the government is dragging its feet on free trade pacts, saying the Obama administration wants to finalize deals with Colombia, South Korea and Panama.
"The number one indicator that everyone is focusing on is the unemployment rate ... What we can do to help businesses grow and expand in America is to help them sell their products and services," Locke said at the Reuters Washington Summit. "The key to addressing that deficit is to export more American products and services, not just to China but all around the world."
CHINA BOUND
Later this week Locke will convene the Obama administration's first ever trade promotion policy coordinating committee. He and U.S. Trade Representative Ron Kirk will then travel to Hangzhou, China next week for high-level talks on trade and investment concerns.
The U.S. trade deficit with China totaled $143.7 billion in the first eight months of 2009, down 15 percent from the same period last year as the U.S. recession took a toll on consumer and business demand.
It is still the largest trade gap the United States has with any country and has fallen less than bilateral deficits with Canada, the European Union, Mexico and Japan.
"Clearly the trade imbalance with China is not healthy and we need to do everything we can" to address it, Locke said, adding the ideal situation would for it to be roughly in balance, with small fluctuations from year-to-year.
Locke said he would be pressing the Chinese next week to lower barriers that hamper U.S. companies from participating in China's fast-growing market for clean energy, alternative fuels and energy efficiency products.
But he also warned that the United States risked being left behind by China in those fields if Congress does not pass climate change legislation.
While American investors are waiting to find out what lawmakers will do, "China is spending almost $100 billion a year from the government supporting renewable energy, clean energy, energy efficiency," Locke said.
"The longer we in the United States take to pass comprehensive energy legislation, the farther ahead the Chinese will be," Locke said.
Locke, a former governor of Washington, also said he would also deliver a message to the Chinese that it is in their own economic interest to focus on strong intellectual property protection.
"As they start to innovate, as they start to invent, they're not going to want someone else ... ripping off those ideas and products and services," he said.
In one recent example of the problem, pirated copies of Microsoft's (MSFT.O:Quote, Profile, Research, Stock Buzz) new operating system, Windows 7, were on sale in China last week before the legitimate version was even released. They sold in shops in Shanghai for about $3 a copy -- a fraction of list prices as high as $320.
PUSH FOR VISA, EXPORT CONTROL REFORMS
Earlier this week, Republican Senator Charles Grassley said he gives President Barack Obama "an F" on trade for failing to push forward on free trade pacts with Colombia, Panama and South Korea left over from the Bush administration.
Approving those pacts is part of the administration's plan for boosting exports, but it is still too early to say when they would be sent to Congress, Locke said.
"The president does want those agreements ratified but there are some issues that need to be addressed," Locke said.
The Obama administration has previously cited concerns about anti-labor violence in Colombia, tax laws in Panama and non-tariff barriers in South Korea.
Meanwhile, the Commerce Department has embarked on an initiative aimed at getting more small and medium-sized U.S. businesses involved in exports, Locke said.
It also is working with the other government agencies to ease restrictions on business visas that make it hard for U.S. companies to make export sales, he said.
The department is moving "very, very fast" on its proposal to remove licensing requirements for companies to export certain dual-use goods that have both commercial and military applications to longtime allies, Locke said.
He hoped to have proposals submitted by year end and implement the measure in the beginning of 2010.
"Things that are readily available from Home Depot or Radio Shack and yet are subject to export controls make no sense," he added, echoing a longtime U.S. business complaint the current system makes them lose sales to foreign competitors.
Locke, who oversees a vast department with a number of agencies, said he was also moving to restructure the U.S. Patent Office to help U.S. business compete.
"I find it absolutely unacceptable that it takes almost three years before a patent application is accepted or rejected ... We need to get that down to less than a year. And that is a number one focus for us," Locke said.
(Reporting by Doug Palmer, Tim Ahmann, Glenn Somerville, Kristin Robertsand Paul Eckert; Editing by Andrea Ricci)
Friday, October 2, 2009
China becomes South.Africa's top export destination
China overtook the United States as South Africa's biggest export destination in the first half of 2009, reinforcing the Asian country's push to build trade links with Africa.
South African trade and industry department data also showed on Friday China replaced Germany as its largest country trade partner.
The European Union remains, by far, South Africa's largest regional trading partner for both imports and exports.
Data for South Africa -- Africa's biggest economy -- showed exports to China stood at 27.6 billion rand for the year to June, against 35.8 billion rand for the whole of 2008.
Exports to the U.S. were 19.1 billion rand compared with 66.5 billion rand for 2008.
China has ramped up trade with Africa this decade, particularly looking for the continent's abundant mineral resources, surpassing competing countries in Europe and the United States that have been harder hit by an economic downturn.
China's overall trade with Africa has increased tenfold over the past decade, hitting $107 billion last year, narrowly eclipsing the United States.
South African imports from China measured 35.24 billion rand for the six-month period against 31.45 billion rand for Germany and 23.3 billion rand for the United States.
"China has already increased their footprint throughout Africa, not just South Africa," Efficient Group economist Freddie Mitchell said.
"With South Africa, a lot of doors have opened up to them," referring to China's biggest bank ICBC buying 20 percent of South Africa's Standard Bank, the continent's biggest bank by assets.
Tuesday, September 29, 2009
Wisconsin exports dive 21.5% in 1st half of year
Wisconsin's exports, from paper products to massive shovels used in coal mines, appear headed for their sharpest yearly decline since at least the 1980s - the latest indicator that the economic slump has been as wide as it is deep.
Foreign demand for made-in-Wisconsin goods declined 21.5% in the first six months compared with the same period a year ago, paralleling a 23.8% national decline in U.S. exports, according to the U.S. Census Bureau.
Exports from the state previously had grown every year since at least 1987, except for three minor declines in the period from 1998 to 2001, according to state and federal records.
The decline so far this year has been unusually severe, in Wisconsin and globally.
"This is by far the deepest decline in world trade since the 1930s," said Bernard Hoekman, director for international trade at the World Bank, a multinational lender to developing nations.
Cross-border trade always has been a lubricant of global growth, but the World Bank expects the overall volume of international trade to retreat by 9% to 10% in 2009. That, in turn, has gummed up global economic output, which is expected to decline in 2009 for the first time since World War II, the World Bank said.
Foreign demand for industrial machinery from Wisconsin - the state's single biggest export category - fell 24%, to $1.4 billion, in the second quarter from the same period a year ago.
The impact on southeastern Wisconsin is acute, said Tim Sullivan, president and chief executive officer of Bucyrus International Inc., the Milwaukee-based maker of mining equipment. Most jobs at Bucyrus in the Milwaukee area - where it employs more than 1,300 people, out of a global workforce of 7,200 - "are very dependent on foreign business," Sullivan said.
Of the $1 billion a year in parts and equipment that Bucyrus ships from metro Milwaukee, 75% goes overseas, Sullivan said. That could climb to 80% next year as the company continues to seek business abroad to offset weakness in its North American markets.
The company's traditional export markets - Australia, South America and southern Africa - have all seen orders fall by double digits in the first half of the year, Sullivan said. But Bucyrus has stabilized itself by working off a strong order backlog that it accumulated last year, which has kept production at last year's level.
Also, new markets including China, India and eastern Europe have continued to expand. "Those markets are carrying us right now," he said.
In recent weeks, there have been indications that foreign markets have hit bottom, Sullivan said, echoing a recent analysis by the World Bank.
Gamut of goods
In addition to the drop in exports of industrial machines during the first half of this year, declines were spread among a gamut of Wisconsin-shipped goods: plastics, down 15%; paper goods, down 26%; and medical instruments, down 27%.
Declines also were evident among many of the state's major export destinations, from Mexico to Canada to Germany.
Declines in exports to China, the No. 3 buyer of goods from both Wisconsin and the U.S., were less severe.
"Mexico has slowed down, and so has all of Latin America," said Bill Niehaus, chief financial officer of Medica International Ltd., a Port Washington firm that acts as the export arm for U.S.-based pharmaceutical makers that aren't large enough to have their own international logistics staff. Medica offset the international slowdown by adding new clients, Niehaus said.
GE Healthcare Ltd. said its exports from Wisconsin have fallen in 2009 but wouldn't give precise figures. The medical technologies division of General Electric Co., which has a big base of manufacturing in southeastern Wisconsin, has been focused this year on turning around a slump in sales. Late last year, GE began cutting jobs in Wisconsin, where it employed nearly 7,000 workers before the downturn began.
The government does not track imports on a state-by-state level. Wisconsin is the nation's No. 27 export state, in the middle of the national rankings, census numbers show.
In 2005 and 2006, Wisconsin accounted for 1.7% of the nation's total exports. That slid to 1.6% in 2007 and 2008.
Slow recovery
Even as economists talk hopefully of a turnaround, however, sluggish international demand could mean the U.S. recovery will be slow to gather momentum, Hoekman said. Growth in trade volumes is expected to resume next year, but Hoekman said there's too much uncertainty to offer a more precise outlook.
Pockets of growth remain, although they are easier to find in China and India than in North America and western Europe. The Asian Development Bank last week said it expects China to post 8.2% economic growth this year, while India clocks in at 6%.
Around the world, exports are the locomotive that pulls other cars on the economic train, analysts argue. Just as a household needs income to pay bills, national economies need exports to afford imports and accumulate the national currency reserves to drive new investment and growth. Jobs created through foreign demand rank at the top of the economic food chain because they import new income into a region.
"Exports equals jobs; that's about as basic as it gets," Hoekman said.
That raises the stakes for the United States. As a nation, the U.S. buys more than it sells and borrows more than it lends. A drop in exports only widens those gaps and makes the U.S. more reliant on foreign loans, Hoekman and other economists note.
China ranks as the No. 1 supplier of U.S. imports. For every dollar of made-in-America goods sold in China, the U.S. purchased $4.84 in made-in-China goods. In 2008, the U.S. ran a record $268 billion trade deficit with China, which also ranks as the biggest trade deficit between any two nations in history.
To pay for imports, the U.S. borrows funds, often from the central banks of China, Japan and the Middle East.
"The U.S. is building up a pretty large pile of debt," Hoekman said.
By John Schmid of the Journal Sentinel
Friday, September 11, 2009
California exports drop for ninth straight month
Signs of global economic recovery were nowhere to be found in California's latest trade figures, although national figures did point to an uptick in spending.
California exports were down sharply for the ninth straight month in July from the same period a year ago, according to the University of California Center Sacramento.
Exports were valued at $9.77 billion, down 23.5 percent from $12.77 billion in July 2008.
"Adjusting for inflation, this was the lowest export total for the month of July California has recorded since 2003," said Jock O'Connell, the UC center's international trade and economics adviser.
The center based its analysis on data released Thursday by the U.S. Department of Commerce. As reported by the Associated Press, the department said international trade activity was on the rise, boosting foreign demand for U.S. goods for a third straight month. However, the United States also saw its appetite for foreign products increase.
U.S. exports rose 2.2 percent to $127.6 billion from June to July, and imports rose 4.7 percent to $159.6 billion, the largest monthly advance since record-keeping began in 1992.
The Commerce Department said those corresponding increases pushed the U.S. trade deficit to $32 billion in July, its highest level in six months.
Some economists saw increased imports as a sign that retailers and manufacturers are rebuilding their inventories, which could lead to greater production.
"Eventually the factories have to come back online to restock the shelves," said Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities, which raised its forecast for third-quarter U.S. economic growth from 2 percent to 3 percent. In its analysis of California trade, the UC center said manufactured exports from the state fell by 25.2 percent in July, compared with a year ago, while agricultural goods and other non-manufactured exports dipped by 29 percent. Re-exports of goods previously imported into the state were off by 13.2 percent.
The UC center said California's year-to-date exports of $66.12 billion are down 23.1 percent from $85.99 billion in the 2008 January-to-July period.
The center said the value of foreign goods entering the United States through California in July was $29.1 billion, a 29 percent decrease from $41 billion last year.
State-specific imports are not broken down, because some goods entering California are bound for other states. Consequently, exports of California-produced goods are considered the key indicator of Golden State trade.
O'Connell pointed to some slivers of hope, noting that some California agricultural imports were up and that export totals have been edging up since spring.
Still, he said California's high unemployment and wobbly economy are "not likely to produce any robust recovery."
Other financial experts agreed.
"It's going to be very tough, because unemployment in this state is probably close to 25 percent if you consider the level of underemployment," said Keith Springer, president of Capital Financial Advisory Services in Sacramento.
Springer cited major losses, such as the scheduled March 2010 closure of the NUMMI vehicle-assembly plant in Fremont, the 25-year-old General Motors-Toyota joint venture that once employed 20,000.
"That's big and there's really no place to make up that many job losses in this economy," Springer said.
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Sunday, July 5, 2009
Expressing the sense of Congress that Africa is of significant strategic, political, economic, and humanitarian importance to the United States.
111th CONGRESS
1st Session
H. CON. RES. 128
Expressing the sense of Congress that Africa is of significant strategic, political, economic, and humanitarian importance to the United States.
IN THE HOUSE OF REPRESENTATIVES
May 18, 2009
Mr. RUSH (for himself, Mr. PAYNE, Mr. MCDERMOTT, Mr. RANGEL, Ms. KILPATRICK of Michigan, Ms. CLARKE, Mr. CLAY, Mr. FATTAH, Mr. CUMMINGS, Mr. MEEKS of New York, Mr. CAO, and Mr. ROYCE) submitted the following concurrent resolution; which was referred to the Committee on Foreign Affairs
CONCURRENT RESOLUTION
Expressing the sense of Congress that Africa is of significant strategic, political, economic, and humanitarian importance to the United States.
Whereas contemporary United States ties with Sub-Saharan Africa today far transcend the humanitarian interests that have frequently underpinned United States engagement with the continent;
Whereas Africa now plays an increasingly significant role in meeting the world’s energy needs, supplying new and old technologies with vital mineral resources, and countering the transnational threats of terrorism, piracy, global health crises, and trafficking in illegal narcotics and persons;
Whereas there is a growing understanding in foreign policy circles that economic development, natural resource management, human security, and global stability are inextricably linked;
Whereas Freedom House concluded this year that 19 African countries are electoral democracies and asserted that these include ‘some of the most promising examples of new democracies in the world--places where leaders who came to power through fair and competitive elections provide real opportunities for their citizens to live in freedom’;
Whereas the United States Millennium Challenge Corporation (MCC) has entered into 11 compacts with African countries, worth nearly $4.5 billion, reflecting these countries’ commitment to policies that promote political and economic freedom, investments in education and health, the sustainable use of natural resources, control of corruption, and respect for civil liberties and the rule of law;
Whereas African economies are among the fastest growing globally and registered nearly 6 percent overall economic growth in 2007, the highest in 20 years;
Whereas there are now 40 sub-Saharan African countries eligible for trade benefits under the United States African Growth and Opportunity Act (AGOA), the highest number ever;
Whereas United States exports to Sub-Saharan Africa totaled $14.4 billion in 2007, an amount more than double that of 2001, while United States total imports from sub-Saharan Africa more than tripled during this period, to $67.4 billion;
Whereas United States firms are a leading provider of foreign direct investment to Sub-Saharan Africa, investing $13.8 billion by year-end 2006;
Whereas the United States Government and private sector jointly promote Africa’s economic development, United States trade with the region, and United States-Africa business partnerships;
Whereas African states have collectively adopted the African Union’s New Partnership for Africa’s Development (NEPAD), a self-imposed framework for socio-economic development that aims to improve governance and promote friendlier ties among states;
Whereas oil from North and Sub-Saharan Africa accounted for over 19.5 percent of United States oil imports in 2008, a greater share than oil from Persian Gulf countries;
Whereas the proportion of United States oil imports from Africa is expected to grow to 25 percent over the next decade;
Whereas Africa’s natural resources, if carefully managed, will contribute to global prosperity and expand economic growth in Africa;
Whereas the creation of a United States military Africa Command in 2007 reflects Africa’s long-term strategic value and strives for a more coherent, coordinated, and effective United States Africa policy;
Whereas the territorial waters of the Horn of Africa are a zone of international strategic importance because a large proportion of global energy supplies and commercial shipping pass through them, necessitating increased United States cooperation with African countries to improve border and coastal security;
Whereas United States military cooperation with Africa is growing, with United States and African forces routinely conducting joint exercises;
Whereas African governments are steadily taking a larger role in the provision of security and peacekeeping on the continent, due in part to United States security assistance and training;
Whereas over 300 million Muslims live in Africa, where they enjoy a long history of tolerance and inter-faith cooperation, making Africa an ideal place for the United States to foster and expand its relationship with the Islamic world;
Whereas Africa’s growing importance is reflected in the intensifying efforts of China, Russia, India, Iran, and other countries to gain access to African resources and advance their ties to the region; and
Whereas a more comprehensive, multi-faceted regional policy is essential for the United States to operate effectively in this increasingly competitive environment: Now, therefore, be it
Resolved by the House of Representatives (the Senate concurring), That it is the sense of Congress that--
(1) Africa is of significant strategic, political, economic, and humanitarian importance to the United States; and
(2) the United States should vigorously pursue the formation and implementation of an integrated policy framework to advance economic development and trade relations with African nations and to foster strategic, political, economic, humanitarian, and cultural ties of mutual benefit to the United States and Africa.- Rep. Bobby Rush [D, IL-1]
- Rep. John Boozman [R, AR-3]
- Rep. Anh Cao [R, LA-2]
- Rep. Yvette Clarke [D, NY-11]
- Rep. William Clay [D, MO-1]
- Rep. Elijah Cummings [D, MD-7]
- Rep. Chaka Fattah [D, PA-2]
- Rep. Michael Honda [D, CA-15]
- Rep. Bob Inglis [R, SC-4]
- Rep. Sheila Jackson-Lee [D, TX-18]
- Rep. Carolyn Kilpatrick [D, MI-13]
- Rep. Barbara Lee [D, CA-9]
- Rep. James McDermott [D, WA-7]
- Rep. Gregory Meeks [D, NY-6]
- Rep. Donald Payne [D, NJ-10]
- Rep. Charles Rangel [D, NY-15]
- Rep. Edward Royce [R, CA-40]
- Rep. Diane Watson [D, CA-33]
- Rep. Lynn Woolsey [D, CA-6]
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