It is a pleasure to have this opportunity to meet so many of our state partners who work with us every day to help U.S. companies with their overseas operations.
Throughout my professional career in economic development, I have had, at various times, responsibility for leading efforts at the national, state and local levels.So I have a great appreciation for what you do and for your organizations’ capabilities.
Over the years, the Department of Commerce and SIDO have maintained a strong relationship.We’ve cooperated on trade missions, exporting seminars and industry training programs. In several cases we share offices with one another in our U.S. Export Assistance Centers.
We are both committed to serving U.S. companies with the highest quality export services and work effectively to complement and support each other’s services.
One of Secretary Gutierrez’s top priorities for the Department is to help the United States economy become a true export powerhouse.The Department is dedicated to this goal, and it will provide further opportunities to deepen our relationship with SIDO.
With SIDO member states deploying more than 1,000 trade professionals on the ground in the U.S. and a presence in many key markets worldwide, you are critically important contributors to America’s export promotion efforts and U.S. global competitiveness.
Today I want to discuss a newly-announced program that presents an opportunity to further deepen our partnership—the Invest in America initiative—a program to promote the U.S. as the premier destination in the world for investment.
As an important part of our economy, we must continue to attract inward or foreign direct investment (FDI). Currently, subsidiaries of foreign companies directly employ 5.1 million Americans, and millions more, indirectly.
U.S. subsidiaries of foreign firms account for 19 percent of total U.S. exports of goods ($153.9 billion), and in 2006 reinvested more than $80 billion of their profits back into the U.S. economy. As you can see, the interplay between exports and investment promotion is substantial.
It is important to note that foreign-owned U.S. subsidiaries invest heavily in American manufacturing. In fact, 31 percent of FDI jobs are in manufacturing. We want to work with you to build on this success, by complementing state efforts, but remaining neutral in any competition between the states.
But until we launched Invest in America last month, the United States had no program to attract or retain investment at the federal level.
We weren’t demonstrating the national commitment necessary to convey to the world that the United States cares about foreign direct investment.
Invest in America responds to that need, by providing a mechanism to promote inward investment at the federal level. Our global network will provide the platform to educate international investors on the advantages that come with investing in the United States and counter any misconceptions. Frankly, we launched the initiative, in part, due to the need to counteract negative publicity generated by recent press reports, and ensure the global investment community that the United States remains the best place in the world to do business.
Currently, our efforts are focused on outreach to foreign governments and investors, outreach to state governments, and addressing business climate concerns by serving as ombudsman in Washington for the international investment community. Ultimately, we are working to ensure that the United States remains the primary world market for inward investment.
In closing, many states have well established, very effective investment promotion programs and, I want to assure you that the Department of Commerce knows the important role you play in encouraging investment and that our role will serve to supplement, not supplant, your efforts.
We want to work with you to build on this success by complementing what you are already doing at the state level, but remaining neutral in any competition between the states.To ensure there are no preferences for any state, our Commercial Service staff will be trained to provide all inquiries by prospective investors with a full listing of the investment contacts from each of the 50 states.
We do not intend to get involved in specific transactions but will continue to promote the U.S. as a whole as the premier place to do business.The U.S. Department of Commerce is uniquely positioned to enhance the brand identity of the U.S. as the premier investment destination in the world.The Invest in America initiative will work with state officials to develop a supportive message that complements all the states’ efforts to create jobs and economic growth through inward investment. Your role in this endeavor will ensure its success.
As this is a new initiative, there will undoubtedly be adjustments as we refine the program, which is why it is important that we maintain open lines of communication with our partners around the country.
Your views are important to us as we seek to ensure we’re doing the best we can to complement ongoing programs and activities of investment promotion.
We look forward to working with you to make this program a success. Thank you, and I look forward to your questions.
Source: U.S. Department of Commerce
