THE WHITE HOUSE
Office of the Press
Secretary
FOR
IMMEDIATE RELEASE
March
11, 2010
Remarks
of President Barack Obama – As Prepared for Delivery
National
Export Initiative
Washington,
DC
March
11, 2010
Thank
you, John, for that generous introduction, and congratulations to you, Fabienne and Luis for the recognition your companies
deserve. Thank you to the Chairman of the Export-Import Bank, Fred
Hochberg, for having me here; and for all the important work the Ex-Im Bank is
doing to help American businesses sell their ideas to the world. I also
want to recognize the Secretary General of the OECD, Angel Gurría, for his
leadership at that institution.
Let
me also acknowledge some members of my economic team who are here today – my
Commerce Secretary, Gary Locke, who’s just returned from a trip to Brazil; and
our United States Trade Representative, Ambassador Ron Kirk. And I want
to thank them for doing a great job in the work of moving this country forward
in tough times.
That’s
been our most pressing priority over the first year of my administration.
Guiding the American economy through its most serious crisis since the Great
Depression. To do that required difficult, sometimes unpopular steps to
rescue our financial system and jumpstart an economic recovery. But we
took those steps. And because we did, we can stand here just over a year
later, and say that we prevented another depression, we broke the back of the
recession, and the economy that was shrinking a year ago is growing today.
What’s
also clear is that we have a long way to go. More than eight million
Americans have lost their jobs since the start of the recession. Millions
more remain underemployed; including those doing part-time work or odd
jobs. And middle-class families across this country have felt their
economic security eroding for longer than they care to remember. That’s
why we continue to do everything we can to foster private sector job creation
and to restore some of that security.
But
the fact is, if we want to once again approach full employment; if we want to
create broad, shared, and lasting wealth for our workers and our families; if
we want an America that is ready to compete on the global playing field of the
21st century – then we cannot slide back into an economy where we
borrow too much and put off tough challenges. We cannot return to an
economy where too much of our prosperity is based on fleeting bubbles and
rampant speculation. We have to rebuild our economy on a new,
stronger, more balanced foundation for the future – a foundation that will
advance the American people’s prosperity at home, and support American
leadership in the world.
That
is precisely what we’ve begun to do. We’re catalyzing a new clean energy
industry that has the potential to employ millions of workers in good
jobs. We’re investing in the skills and education of our workers; and
reforming our education system with a goal to once again lead the world in the
proportion of college graduates by the end of this decade. We’re building
a better health care system that works for our
people, our businesses, and our government alike. We’re establishing
clear, commonsense rules of the road for Wall Street that encourage innovation
and creativity over recklessness or irresponsibility; rules that prevent firms
from taking risks that threaten the entire economy.
And we are rebuilding an economy where we generate more American
jobs in more American industries by producing and exporting more goods and
services to other nations. In my State of the Union Address, I set a goal
of doubling America’s exports over the next five years – an increase that will
support two million American jobs. And I’ve come to the Export-Import
Bank Conference today to discuss the initial steps we’re taking to achieve that
goal.
Now,
I know the issue of exports and imports; the issue of trade and globalization;
have long evoked the passions of a lot of people in this country. I know
there are differences of opinion between Democrats and Republicans; business
and labor; about the right approach.
But
I also know we’re at a moment where necessity has tempered the old
debates. Those who would once support every trade agreement now see that
other countries have to play fair and agreements have to be enforced.
Those who once would once oppose any trade agreement now understand that there
are new markets and new sectors out there we need to break into if we want our
workers to get ahead.
Meanwhile,
if you ask the average American what trade has offered them, they won’t say
that their televisions are cheaper, or productivity is higher. They’d say
they’ve seen the plant across town shut down, jobs dry up, and communities
deteriorate. And you can’t blame them for feeling that way. Other
countries haven’t always played by the same set of rules. America hasn’t
always enforced our trade rights, or made sure that the benefits of trade are
broadly shared. And we haven’t always done enough to help our workers
adapt to a changing world.
There’s
no question that as we compete in that global marketplace, we’ve got to look
out for our workers. But to look out for our workers, we’ve got to
compete in the global marketplace. Because it’s never been as important
an opportunity for America.
In
a time when millions of Americans are out of work, boosting our exports is a
short-term imperative. Our exports support millions of American
jobs. In 2008, we exported more than one trillion dollars of manufactured
goods, supporting more than one in five manufacturing jobs – jobs that pay
about 15 percent more than average. We led the world in services exports,
which supported 2.8 million jobs. We exported nearly $100 billion in
agricultural goods. And every $1 billion increase in exports supports
more than 6,000 additional jobs.
It’s
also critical for our long-term prosperity. 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.
They’re
investing in the skills and education of their people. They’re investing
in the high-demand industries of the future. They’ve benefited from
American consumers, made themselves into export-based economies, and positioned
themselves for those jobs. They’re pursuing trade agreements with growing
markets – agreements that would give their companies access to those markets
and put our workers and businesses at a disadvantage.
If
we stand on the sidelines while they go after those customers, we’ll lose out
on the chance to create the good jobs our workers need right here in
America. But standing on the sidelines is not what we do. We still
have the most innovative economy in the world. We have the most
productive workers in the world. We have the finest universities in the
world. We have the most dynamic and competitive markets in the world.
And
we remain the number one exporter of goods and services in the world. But
we shouldn’t be satisfied with being number one. We shouldn’t assume our
leadership is guaranteed. When other markets are growing, and other
nations are competing, we need to get even better. We need to secure our
companies a level playing field. We need to guarantee American workers a
fair shake. We need to up our game.
That’s
why, for the first time, the United States of America is launching a single,
comprehensive strategy to promote American exports. It’s called the
National Export Initiative; and it’s an ambitious effort to marshal the full
resources of the United States government behind American businesses that sell
their goods and services abroad.
This
morning, I signed an Executive Order instructing the federal government to use
every available federal resource in support of that mission. That order
has created an Export Promotion Cabinet, made up of the Secretaries of State,
Treasury, Agriculture, Commerce and Labor, along with our U.S. Trade
Representative, Small Business Administrator, the Export-Import Bank President,
and other senior U.S. officials whose work impacts exports. That cabinet
will convene its first meeting next month. I’ve also re-launched the
President’s Export Council; the principal national advisory committee on international
trade. I’ve named Jim McNerney, the President and CEO of Boeing, as its
chair; and Ursula Burns, the CEO of Xerox, as vice chair; and I look forward to
their recommendations.
Let
me talk a bit about what the National Export Initiative will do. First,
we’ll substantially increase access to trade financing for businesses that want
to export their goods but just need a boost – especially small businesses and
medium-sized businesses.
Some
of the biggest factors limiting a firm’s decision to export are the high
upfront cost of establishing a foothold in a new market, and the ability of the
customers in that market to finance the purchase of their products.
During
the financial crisis, as trade finance dried up, the Ex-Im Bank lived up to its
mission, stepping in to fill the void. In fiscal year 2009, as part of a
broader effort of G20 nations to mobilize trade finance worldwide, this
institution authorized $21 billion in loans in support of American exports – an
increase of nearly 50 percent over the previous year. I applaud Fred
Hochberg’s efforts to increase that pace with the authorization of about $10
billion more in the first quarter of this year alone. And under the
National Export Initiative, we’ll continue to increase the amount of trade financing
Ex-Im offers, including a new $2 billion per year effort to increase support
for our small and medium-sized businesses.
Another
obstacle our exporters face is that the federal government just hasn’t done a
good enough job advocating for them abroad. That’s why, as the second
part of the National Export Initiative, the United States of America will go to
bat for our businesses and our workers.
As
an example, last week, I signed the Travel Promotion Act; a law that will
establish active promotion and marketing efforts to encourage foreign citizens
to come visit the most dynamic cities, the most entertaining destinations, and
the most beautiful natural resources in the world. Well, the same
principle applies for our businesses. We’ve got some of the most innovative
companies in the world – and we should be advocating on their behalf to boost
local economies and create jobs here.
This
is an effort that I will personally lead as President. Next week, I will
take my second trip to the Asia Pacific – a region that will be fundamental to
America’s ability to create jobs and to thrive in the 21st
century. We cannot be on the sidelines – we have to lead, and our
engagement must extend to governments, business, and peoples across the
Pacific. While I’m there, I plan on visiting Indonesia and Australia, two
vibrant economies and democracies that will be critical partners for the United
States. In both countries, I will highlight the role that American
business plays there, and underscore how strong economic partnerships can
create jobs on both sides of the Pacific while advancing regional – and global
– prosperity. And going forward, I will be a strong and steady advocate
for our workers and companies abroad.
This
effort will extend throughout my Administration. Secretary Locke is
issuing guidance to all senior government officials who have foreign
counterparts on how they can best promote our exporters. Secretary
Clinton is mobilizing a commercial diplomacy strategy, directing every one of
our embassies to create a Senior Visitor Business Liaison who will manage our
export advocacy efforts locally, and when our ambassadors return stateside,
we’ll ask them to travel the United States to discuss export opportunities in
their countries of assignment. We’re also announcing more than 40 trade
and reverse trade missions are scheduled for this year. The Department of
Commerce, for example, has sent a trade mission to India this week; and
Secretary Vilsack is off to Japan on April 15th.
Third,
we’ll unleash a battery of comprehensive and coordinated efforts to promote new
markets and new opportunities for American exporters.
Many
businesses want to export their products, but just don’t have the resources
required to identify new markets or to set up shop overseas. That’s where
we can help. We’ll bring together the Ex-Im Bank, the SBA, the
Departments of Commerce and Agriculture, and the Trade Development Agency to
set up one-stop-shops across the country and in our 250 embassies and
consulates abroad, to help American businesses gain a foothold in the
fastest-growing markets with the most demand. And we’ll provide a
comprehensive toolkit of services – from financing to counseling to promotion –
to help potential exporters grow and expand.
We’ll
create public-private partnerships to help firms break into new markets with
the help of those who have been there – shipping and supply-chain companies,
for example.
And
we’ll increase funding for existing promotion efforts. We’ll increase
funding for the International Trade Administration at the Department of
Commerce, and strengthen the USDA’s ability to connect farmers with new
customers overseas.
So
we’re increasing financing, advocacy, and assistance for American businesses to
locate, set up shop, and win in new markets. Those are the first three
aims of the National Export Initiative.
The
fourth focuses on making sure American companies have free and fair access to
those markets. And that begins by enforcing trade agreements we already
have on the books.
When
I ran for President, I promised that when the United States of America puts its
name to an agreement, that agreement will be as good for workers as it is for
businesses, and include strong labor and environmental protections that we’ll
enforce. My administration is living up to that promise. Ambassador
Kirk has been doing a fantastic job as our United States Trade Representative,
working to knock down barriers that unfairly keep American companies from
markets we belong in, hold our trade partners to their labor and environmental
obligations, and crack down on practices that blatantly harm our companies.
The
United States offers some of the world’s lowest barriers to trade. That’s
why we can often get more out of a trade deal – our borders are largely
open. And when we give other countries the privilege of that free and
fair access, we can expect it in return. That’s the spirit in which we’ll
move forward. We’ll continue to work towards an ambitious and balanced
Doha agreement – not just for the sake of any agreement, but for one that
enhances market access for American agriculture, goods, and services.
We’ll strengthen relations with key partners like South Korea, Panama, and
Colombia, with the goal of moving forward with existing agreements in a way
that upholds our values. And we will pursue negotiations in the
Trans-Pacific Partnership we launched last year with some of the most dynamic
economies in Asia – negotiations that I believe will result in a new standard
for 21st century trade agreements that aren’t just good for workers,
businesses, and farmers; but consistent with our most cherished values.
What’s
more, we’ll aggressively protect our intellectual property. Our single
greatest asset is the innovation, ingenuity, and creativity of the American
people. It’s essential to our prosperity. But it’s only a
competitive advantage if our companies know that someone else can’t just steal
that idea and duplicate it with cheaper inputs and labor. There’s nothing
wrong with other people using our technologies – we just want to make sure that
it’s licensed, and that American businesses are getting paid
appropriately. And that’s why USTR is using the full arsenal of tools
available to crack down on practices that blatantly harm our businesses, including
negotiating proper protection, enforcing our existing agreements, and moving
forward on new agreements, including a proposed Anti-Counterfeiting Trade
Agreement.
We’ll
also work within the G20 to continue global recovery and growth. Last
year, when the G20 met to coordinate the international response to our global
economic crisis, we agreed that in order for that growth to continue, we needed
to rebalance our economies. For too long, America served as the consumer
engine for the entire world. But we are rebalancing. We’re saving
more. We all need to rebalance. Countries with external deficits
need to save and export more. Countries with external surpluses need to
boost consumption and domestic demand. And as I’ve said before, China
moving to a more market-oriented exchange rate would make an essential
contribution to that global rebalancing effort. I want to commend
Secretary Geithner for his extraordinary work and tremendous leadership
throughout his work with the G20, and I know he’ll keep working to encourage a
rebalancing of global demand – efforts that will be good for our exports and
for our job growth.
Finally,
we’re working to reform our Export Control System for our strategic, high-tech
industries, which will strengthen our national security. We’ll
concentrate our efforts on enforcing controls on the export of our most
critical technologies, making America safer while enhancing the competitiveness
of key American industries. We’ve conducted a broad review of the Export
Control System, and Secretary Gates will outline our reform proposal within the
next couple weeks. But today, I’d like to announce two steps that we’re
prepared to take.
First,
we’ll streamline the process certain companies need to go through to get their
products to market – products with encryption capabilities like cell phone and
network storage devices. Currently, they endure a technical review that
can take between 30 to 60 days – putting that company at a distinct
disadvantage to foreign competitors who don’t face those delays. A new
one-time online process will shorten that review time from 30 days to 30
minutes, making it quicker and easier for our businesses to compete while
meeting our national security requirements.
Second,
we will eliminate unnecessary obstacles for exporting products to companies
with dual-national and third-country-national employees. Currently, our
exporters and foreign consumers of these goods have to comply with two
different, conflicting sets of standards. They’re running on two tracks,
when they could be running on one. So we’re moving toward harmonizing
those standards, making it easier for American and foreign companies to comply
with our requirements without diminishing our security. I look forward to
consulting with Congress on these reforms, as well as our broader export
control reform effort.
So
that’s how we’ll help double our exports, open up new markets, and level the
playing field for American workers and businesses. And I have every
confidence that we can and will succeed in this endeavor.
This
is a difficult time for our country. And in times like these, questions have
always arisen about whether or not America’s best days are behind us. There
have always been naysayers and skeptics. There have always been those who
waxed fatalistic, fearing that we lacked the capacity to succeed – at times
even to survive – in a changing world.
But
what makes America great – what makes America the envy of our competitors; what
makes this a place where people come not just to invest but to start lives and
businesses and families – is something that has been inexorable and enduring,
especially in times of great challenge and great change. It’s that spirit
of adventurousness and entrepreneurship that has for generations turned
wild-eyed tinkerers into world-changing entrepreneurs; that led us to look
westward and then skyward; that led to roads and railways cutting through
wilderness; and ships and planes and fiber optic lines carrying American goods
and services around the world. It’s the spirit that has advanced
America’s leadership in the world and held aloft the American Dream for
generations. And it is, ultimately, this spirit that has given us the
tools and the toughness to overcome every obstacle and adapt to every
circumstance – especially today.
It
hasn’t always been easy. And our success is my by no means
guaranteed. But if we summon a sense of national purpose equal to the
seriousness of these times; if we combine our creativity, our innovation, and
our eternal optimism; if we come together in common cause as we have so many
times before – then we will succeed. We will define our destiny once
again. And we will make this century another American century.
Thank you.
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