Thank you, Israel (Hernandez), for that very kind introduction. And thank you for inviting me to speak today. It's an honor to be here on behalf of President Bush and Secretary Gutierrez.
Before updating you on our trade agenda, I first want to thank you for your service. As members of the District Export Council, I know that you serve voluntarily, in addition to handling full time jobs or running a business. We continue to depend on you because you understand, as I do, the necessity of growing our export base to keep America competitive.
More businesses need to get involved in overseas markets. More business owners need to understand that exporting isn't as difficult as they might think. Our economy is doing very well. But the reality of the 21st century is that businesses that want to grow and prosper must have global strategy. Ninety-five percent of the worlds market lies outside of the United States.
They also need to know that we're here to help: The Commerce Department, the Small Business Administration, the Export/Import Bank and the Trade and Development Administration. And we need more awareness of the valuable export services offered by the private sector, where many of you come from organizations such as the U.S. Chamber, J.P. Morgan Chase, Capitol One, Federal Express and PNC Bank.
DECs all across the country are making a significant difference. More companies are learning about how to export through mentoring programs, export seminars, and through everyday contact in their local communities. And the grass root effort to help pass free trade legislation is opening new markets and new opportunities.
The Department of Commerce and the Administration recognize your efforts, and we thank you.
When talking about trade and competitiveness in global markets, the first thing to consider is the strength of the American economy.
Economy Strong and Growing Our economy is growing faster than any other major industrial, democratic, developed nation. The Dow Jones is topping 12,000 for the first time ever, showing how incredibly resilient and strong the American economy truly is.
Trade Talking up trade and open markets is especially critical these days. The voices of protectionism and isolationism are growing louder in the U.S. Congress and among some of our trading partners.
It is our job as export promoters to engage and educate our employees and the public on the value of trade. We need to keep prying open markets overseas, making sure we have a level playing field for our businesses and workers to compete and win.
When it comes to opening markets, no administration has a better record than this one.
Doha Trade Talks While other countries have sat on the sidelines, we led the launch of the Doha round of world trade talks. We have put forward bold proposals throughout this process.
These talks are entering a critical phase. Our U.S. Trade Representative, Susan Schwab, has been holding one-on-one talks since July with WTO Members, meeting in Brazil, Malaysia, China and Australia.
The U.S. is willing to make the tough tradeoffs that will be needed to bring negotiations to a successful outcome. The key question is: What about our key trading partners? TPA Reauthorization and FTAs We have worked with Congress and will continue to do so to renew trade promotion authority (TPA), which gives the President the ability to negotiate and to sign trade deals with other nations, such as the multi-lateral Doha agreement, without them getting pinned down by special interests.
President Bush has used this authority to implement Free Trade Agreements (FTAs) with a record 10 countries in the Middle East, Asia and across Latin America. We have completed negotiations with an additional five countries and have more in the works.
These agreements are not only opening markets but are powerful development tools because they encourage the rule of law, fight corruption, and promote good governance reforms in developing countries.
Trade agreements, and the economic rights they embrace, are truly one of the greatest drivers of democracy we have.
And they are a smart trade policy, given the size and growth of emerging markets, which today account for one-third of total world economic activity.
Opening markets overseas is a priority. But we also need to vigorously enforce U.S. trade laws as well as make sure others are playing by the rules, too.
China/IPR Most would agree that trading with China is the commercial relationship of the century. China is our fourth-largest export market, and soon to be the third-largest.
And most of us know what China's economy has achieved since it began market reforms in the late 1970s.
President Bush has designated Treasury Secretary Paulson to lead the talks, which will begin in December.
In mid-November, Secretary Gutierrez will lead a trade development mission to China. Two dozen businesses will be represented, from heavy industry to travel and tourism.
While all this is good news, we still have work to do. We remain focused on improving China's transparency, access for U.S. exporters and enforcement of intellectual property rights (IPR).
Businesses know how critical intellectual property is to innovation, to investment, and to economic growth. Some 75 percent of the value of publicly-traded U.S. companies--some $5 trillion--comes from "intangible" assets such as brands, copyrights and patents.
For these reasons, IPR protection is a top priority for the Bush administration. We've seen progress since we reached a deal with China last April to open up beef and other markets, as well as get tough on IPR enforcement.
China's recent crackdown on illegal audiovisual products and software is a positive sign. Still, we believe IPR reform in China remains a work in progress. The question is whether this latest crackdown is a sustained effort.
India and Brazil are other countries where IP piracy is a major problem, and we're also working with the European Union and the G-8 countries to make this a global priority.
We're redoubling our own enforcement; federal IP cases were up 45% in 2005, and seizures of fakes at our borders have doubled since 2001.
Trade Deficit Let me say a word about the trade deficit. I know it comes up often in the media and is seen as a weakness. The trade deficit is an important number, but it is not the only number.
The fact is, t he trade deficit is partly a reflection of how much faster our economy is growing, and how much more we're consuming compared to other countries. America is the most desired market for trade. And over the past year our economy grew faster than any industrialized nation. If we see stronger growth in Europe, Japan and China, the U.S. trade deficit is likely to improve.
Conclusion With the strongest economy and most talented people, America can compete and win in any market in the world. We're extremely competitive. It's in our DNA. You can see it in our history, decade after decade.
We do face challenges. What worked in the 1970s, 1980s and 1990s won't necessarily work in the 21st century. We've got to be flexible. We have to innovate and adapt to remain on top.
I believe that over the next 10 to 20 years, we'll be making the decisions that determine the kind of economy that America is going to have for the rest of the century.
I look forward to working with all of you to promote American exports to markets around the world and maintaining our lead in the global marketplace.
Thank you very much.
Source: U.S. Department of Commerce
