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Blog Category: Trans Pacific Partnership

International Trade Agreements Are Vital to Wisconsin Firm’s Continued Growth

International Trade Agreements Are Vital to Wisconsin Firm’s Continued Growth

Guest Blog Post by Jim Corkery, President of ACS

Recently I had the opportunity to meet Secretary of Commerce Penny Pritzker and several US Senators and Representatives to talk about global trade. I strongly support the Trade Promotion Authority (TPA) legislation and want to share my views on how ACS has directly benefited from global trade.

We are an organization offering engineering, equipment fabrication and construction management solutions to companies who develop and test engines and vehicles for worldwide distribution. Our office employees are highly skilled college graduates, most with engineering and advanced engineering degrees, and our manufacturing employees have specialized skilled trades expertise.  Although we have fewer than 150 employees, the global nature of business today means we have offices in Wisconsin, Michigan and South Carolina as well as in the UK and China.   Getting the rules of international trade right is not just theory for my company; it will help accelerate our growth.

The first way we benefit from global trade is when our US-based clients develop products for sale globally – we benefit through contracts to design and construct our clients’ R&D/Manufacturing centers here in the U.S.  These opportunities allow ACS to hire more engineering, manufacturing and support employees to accomplish this work. For example, we recently contracted with Cummins to design and build their R&D and Manufacturing test facilities for a new High Horsepower engine to be designed and manufactured in Seymour, Indiana. This facility serves as the global headquarters for the design and manufacture of this new engine with exports forecasted to be 80% of overall sales.

We have also had opportunities to design and construct international R&D/Manufacturing centers for our US-based clients. Typically we provide preliminary design in the US and then travel to the project countries to oversee final design and construction by local designers and contractors. We have designed and built laboratories for Caterpillar in the US, England, Northern Ireland and China, for Whirlpool in the US, Mexico, Poland and China, for John Deere in the US and Mexico, and for Cummins in the US, England, Romania and China.

Increased Exports and the Jobs Supported by Exports Are Keys to Heightened Economic Confidence

Increased Exports and the Jobs Supported by Exports Are Keys to Heightened Economic Confidence

Guest blog post by Stefan M. Selig, Under Secretary of Commerce for International Trade

When we look back at 2014, it will be seen as the year our country regained its economic confidence, symbolized by the nearly 3 million jobs our economy created in 2014.

While this feat extended the longest streak of job growth in American history, we should not overlook the role our exports and our exporters played in regaining that economic confidence.

U.S. exports of goods and services tallied a record $2.35 trillion in 2014. That was the fifth consecutive year we achieved record exports. This is a clear validation of the Administration’s commitment to a robust trade and investment agenda.

In fact, there are three ways that our exports played an important role in the breakthrough year our economy produced.

First, at the same time that we were experiencing the longest streak of job growth, we also experienced a record year when it came to export-supported jobs: more than 11.7 million.  This number includes the 2.8 million jobs supported by the exports to our North American Free Trade Agreement partners Canada and Mexico. And we know those export supported jobs pay 13 to 18% higher wages than non-export supported jobs.  

Second, U.S. exporters reaped the benefits of a record year of exports with our 20 free trade partners – with a total of $765 billion in goods sent to these markets. That record included increases in exports to Colombia (up 10.5%), South Korea (up 6.8%) and the Central America Free Trade Agreement-Dominican Republic partners (up 5.7%).  Overall, these 20 countries purchase nearly half of all U.S. exports today – 47% to be exact.

Third, a major driver of our export growth came from our Latin American free trade partners, such as Chile, Colombia, Mexico, Panama, and Peru. Exports to these 11 countries alone represented more than a third of our entire year-over-year increase in exports. The region is a major destination for U.S. petroleum and coal, computers and electronics, chemicals, and transportation equipment.

So 2014 was clearly a breakthrough year for our exports and for our economy in general. Now, we need the tools that will allow us to carry that momentum into 2015 and beyond.

That is why passing trade promotion legislation is even more crucial, particularly as we work to finalize the historic Trans-Pacific Partnership agreement (TPP).

Secretary Pritzker Joins Bipartisan Roundtable on the Benefits of Trade During National Governors Association Winter Meeting

Secretary Pritzker Joins Bipartisan Roundtable on the Benefits of Trade During National Governors Association Winter Meeting

Yesterday, Commerce Secretary Penny Pritzker joined a bipartisan roundtable at the White House on the importance of trade and new trade agreements. The meeting was part of the National Governors Association (NGA) Winter Meeting in Washington. NGA is the bipartisan organization of the nation’s governors, and its members include the 55 states, territories and commonwealths of the United States. 

Governors John Hickenlooper of Colorado, Gary Herbert of Utah, and Terry McAuliffe of Virginia attended the roundtable, along with Secretary Pritzker, U.S. Trade Representative Michael Froman, Agriculture Secretary Tom Vilsack, and White House officials.
 
During the discussion, Secretary Pritzker highlighted how trade has helped drive the nation’s economic recovery and proven beneficial to state's economies. For example, more than 5,000 Colorado businesses, both large and small, are counted among the ranks of America’s exporters. Exports from Virginia to our free trade agreement partners have grown by 74 percent over the past 10 years, and in Ogden, Utah, exports drove more than 100 percent of growth out of the recession.
 
Overall, exports support 11.3 million American jobs – which pay up to 18 percent higher than jobs not related to exports. In addition, the Commerce Department announced earlier this month that American exports had hit an all-time high for the fifth year running – sending $2.35 trillion worth of goods and services overseas.
 
That is why the Obama Administration has set an ambitious trade agenda focused on building on this progress.  It will ensure U.S. businesses in every state can access more global markets with fewer barriers. 
 
This agenda includes the completion and implementation of new trade agreements including the Trans Pacific Partnership, which the U.S. is negotiating with 11 other nations. Once completed, TPP will give American businesses free trade arrangements with 40 percent of global GDP.
 
Secretary Pritzker stressed to the attending governors that in today’s global economy, American prosperity is directly tied to our ability to reach new markets and new customers beyond our borders. Today’s roundtable gave Secretary Pritzker an opportunity to  urge the nation’s governors to support trade policies like TPP, and explain why they are essential to the growth of the economy, to the creation of good jobs, to the economic security of American families, and to the competitiveness of our businesses.

Commerce and White House Ramp-Up Efforts to Open More Markets to American Goods and Services

Exports are a vital part of the Obama Administration’s economic growth agenda, therefore, the Commerce Department and the White House hosted a fly-in that brought business leaders from around the country to Washington for a panel discussion on ways to send more products stamped “Made in America” around the world. More than 60 small-medium-sized business leaders representing various industries were in attendance.

Commerce Secretary Penny Pritzker participated in a roundtable discussion about how trade benefits the communities in which these companies operate and these businesses leaders live. She called on business executives to do what she called “painting the brush strokes of each individual portrait” with their neighbors, customers, and employees to make the case to them that trade is not only a global and national priority – it is also a local opportunity.When business stories such as Inficon’s - an innovative company of 250 employees in Syracuse, New York that exports instrumentation -  are told, it paints the picture that trade does indeed impact the lives and livelihoods of citizens and their communities.

Ninety-five percent of the world’s customers live beyond U.S. borders. Secretary Pritzker is leading the charge to make exporting a larger part of the DNA of all American businesses. Key to achieving this goal and at the top of the Administration’s trade agenda is passage of Trade Promotion Authority, the Trans-Pacific Partnership (TPP) and the Transatlantic-Trade and Investment Partnership (T-TIP).  Once completed, TPP is expected to make it easier to sell American products and services to more than 40 percent of global GDP.  T-TIP will cover nations that account for nearly half of the global economy and nearly a third of world trade flows. 

In 2013 exports reached an all-time high of $2.3 trillion with 2014 expected to surpass that record. Trade is a gateway for American businesses to create jobs, grow the economy and bring the markets of the world to the doorsteps of small, medium, and large businesses. The Commerce Department is committed to expanding the global footprint of American businesses and keeping America open for business. 

Deputy Secretary Bruce Andrews Addresses Global Opportunities for U.S. Businesses in Minneapolis

Deputy Secretary Bruce Andrews Addresses Global Opportunities for U.S. Businesses in Minneapolis

Earlier this week, Deputy Commerce Secretary Bruce Andrews traveled to Minneapolis and provided the keynote address on the Administration’s trade agenda and global opportunities for U.S. businesses in the healthcare and life sciences sectors at the Discover Global Markets Healthcare and Life Sciences Conference. The event was part of the Discover Global Markets series, which is sponsored by the International Trade Administration’s U.S. Commercial Service. 

During his remarks, Deputy Secretary Andrews discussed his recent trip to China for the Asia-Pacific Economic Cooperation Summit, stressing the fact that with the world’s largest population, continued prospects for robust growth, and an aging middle class population demanding more health care, China is clearly a market worth a lot of attention from U.S. companies. U.S. businesses generally are well-positioned to provide innovative health care solutions. Deputy Secretary Andrews pointed out success by U.S. companies in healthcare during Commerce Secretary Penny Pritzker’s recent healthcare and energy business development mission to Japan and South Korea. He also announced that the Commerce Department is planning three upcoming missions to areas where there are growing needs for U.S. medical products and services: the Philippines and Indonesia; Kenya, South Africa, and Mozambique; and Egypt, Jordan, and Israel.
 
Because of the increasing recognition of U.S. leadership in medical technologies in the region, Deputy Secretary Andrews also stressed the importance of the need to move forward on broad-based regional agreements like the Trans-Atlantic Trade and Investment Partnership and the Trans-Pacific Partnership that will expand exports, grow our economy, and create good jobs. 
 
More broadly, Deputy Secretary Andrews addressed the Administration’s commitment to helping American businesses take advantage of new export opportunities. He specifically outlined the five goals of the revamped NEI NEXT strategy: to help businesses find their NEXT customer abroad; to increase the efficiency of a company’s first and NEXT shipment; to help firms finance their NEXT order; to help communities integrate trade and investment into their NEXT growth plans; and to open up the NEXT big markets around the world while ensuring a level playing field.
 
While in Minneapolis, Deputy Secretary Andrews also had the opportunity to meet with members of the U.S. Commercial Service and District Export Council, both of whom are valuable partners in Commerce’s efforts to support the U.S. export community.

Commerce Secretary Pritzker Discusses Opportunities for U.S. Businesses in Japan

Secretary Pritzker Delivers Keynote Address at American Chamber of Commerce in Japan

Today, U.S. Secretary of Commerce Penny Pritzker met with representatives from the Japanese healthcare and energy sectors as part of a series of roundtables to discuss American and Japanese business relationships and improve U.S. investment in the Japanese market. These events are part of the Secretary’s trade mission to establish new partnerships and expand the market presence of U.S. medical/pharmaceutical and energy-related companies with innovative products and services.

The roundtable provided U.S. and Japanese entities the chance to share views about the opportunities that exist in the Japanese market and to encourage the development of partnerships that may lead to future breakthroughs in the energy and health sectors.

Secretary Pritzker also delivered a keynote address at an event sponsored by the American Chamber of Commerce in Japan (ACCJ) and the Japanese Industry Association, Keizai Doyukai. She opened her remarks by thanking Ambassador Kennedy, who is working side by side with the Commerce Department’s Foreign Commercial Service Officers stationed in Japan and thanked the team, led by Andrew Wylegala.

During her remarks, Secretary Pritzker emphasized the important role that U.S. and Japanese businesses play in anchoring our relationship, highlighted the U.S. as a key destination for investment, promoted the upcoming SelectUSA Summit on foreign investment, and highlighted the healthcare and energy sectors as two sectors of critical importance to growth, innovation, and quality of life in both countries.

Secretary Pritzker touched on America’s drive to strengthen commercial partnerships, help Japan develop new energy technology, optimize the mix of energy imports, and increase energy conservation. The U.S. anticipates continued high growth in the renewable energy sector, providing excellent opportunities for American firms that have cutting-edge, cost-competitive products and services.