core sector communique

Obama Promotes U.S. Trade

By Merle David Kellerhals Jr.

Staff Writer

Washington - President Obama announced new measures to boost U.S. exports through sufficient financing as part of a broader goal he set two years ago to double U.S. exports in five years and help rebalance the economy, which has been driven by excessive consumer demand.

"Two years ago, I set a goal of doubling U.S. exports over five years," Obama said February 17 at the Boeing aircraft production facility in Everett, Washington. "Today, we're on track to meet that goal - ahead of schedule."

The president also said that he is adding new measures to boost exports "that will help more American businesses sell their products around the world, create jobs right here at home and help us build an economy that lasts." In the aftermath of the 2007-2009 recession, Obama said, he recognized that the United States needed to reduce its consumer demand and expand its exports to bring balance to the economy and reduce the impact of wide swings in the economic cycle.

Part of that effort is the president's National Export Initiative , which is intended to help open markets for U.S. goods and level the trade environment for American businesses that have struggled at times to be competitive in the global marketplace.

Exports are up nearly 34 percent since 2009, exceeding $2.1 trillion in 2011, according to the U.S. Commerce Department.

Obama also has signed into law a series of free-trade agreements with South Korea, Colombia and Panama that will boost exports of U.S. goods and services. Economists generally believe that a national economy that has a healthy mix of exports serves to bolster the base economy and stabilize employment over time.

Another administration measure extends the U.S. Export-Import Bank's authorization. The bank provides direct loans, credit guarantees and credit insurance to U.S. businesses so they can more effectively compete against foreign businesses that often receive financing from their governments. The bank set financing records in 2011 for the third straight year, with overall financing exceeding $32 billion.

"This financing has supported $41 billion in U.S. exports from over 3,600 U.S. companies and almost 290,000 export-related American jobs," according to the White House.

The president proposed a number of measures to further advance U.S. exports including:

.. Authorizing the Export-Import Bank to provide U.S. companies competing for domestic or third-country sales with matching financing support to counter foreign official financing that fails to observe international disciplines.

.. Launching the Global Credit Express to help small-business exporters locate hard-to-find short-term lines of credit of as much as $500,000.

.. Calling for Congress to reauthorize the Export-Import Bank and boost its current lending ceiling, which is expected to run out at the end of March.

.. Simplifying the process for foreign trade zones, which delay or reduce duty payments companies have to pay on foreign merchandise.

.. Seeking legislation that will allow the administration to consolidate six government agencies and related programs into a single department that focuses on exporting and competitiveness for U.S. businesses.

.. Issuing a presidential directive for the newly created Export Promotion Cabinet to work across agencies to maximize efforts to support U.S. trade priorities.

(This is a product of the Bureau of International Information Programs, U.S. Department of State.)