The critical services to U.S. business provided by Commerce's International Trade Administration were severely disrupted during two shutdowns

Business America, Jan-Feb, 1996

The Department of Commerce provides critical services and support to American businesses through worldwide trade and export promotion programs housed in the Department's International Trade Administration (ITA). That work was severely disrupted by two shutdowns of the U.S. Government. Another closure would mean more serious harm to our ability to create better paying jobs and economic growth as well as damage our credibility in international markets.

Trade Enforcement

* A government shutdown deprives U.S. industries and workers of effective and timely relief against unfair trade practices of other countries. The latest shutdown delayed deadlines and affected hundreds of trade law cases involving companies and workers in several hundred industries ranging from steel to printing presses to cellular telephones. A future shutdown would only compound the problem of the already huge caseload in Commerce's Import Administration and add to the backlog of ongoing reviews.

* Workers are especially adversely affected. Suspension of the enforcement of unfair trade practices can only contribute to an atmosphere in which industry is forced to downsize, affecting U.S. workers through falling wages and rising layoffs. U.S. businesses and workers are denied the opportunity to file new petitions seeking relief from unfairly traded imports; cash payments on unfairly traded imports are not required until reviews are completed; and any circumvention occurring during a shutdown period cannot be addressed.

* A government shutdown, which prevents the consistent enforcement of these laws, heightens uncertainty in the private sector. Counter to the purpose of these Congressionally enacted laws, suspension of enforcement hampers normal business planning, thereby jeopardizing U.S. jobs and putting American businesses and workers at a competitive disadvantage vis-a-vis our foreign competitors.

* Beyond the trade laws, our failure to be a clear and visible presence in the international trade arena will be immediately noticed by our foreign competitors and will be interpreted as a signal that our government's commitment to enforce existing trade policy initiatives has dissolved, In Japan, for example, our failure to support our industries by cancelling numerous trade events could threaten progress we have made in the semiconductor industry, where we have had to fight for every inch of market share. Should another shutdown occur, our hard-won gains would begin to erode immediately, and it would be "business as usual" again in Japan.

Advocacy

* The Commerce Department's offices, including the Advocacy Center, are currently working on 384 advocacy projects, with a total value of $167 billion. At stake in these negotiations are $65 billion in U.S. exports and more than one million U.S. jobs. While U.S. Government involvement does not guarantee overseas success, the damage to U.S. companies that would be caused by another government shutdown is evident on many levels:

[square root] U.S. companies bidding for large contracts overseas conduct complex and lengthy negotiations with foreign governments. Without U.S. Government advocacy to level the playing field, the bids of U.S. companies can fall prey to lobbying from competitors and their home governments.

[square root] U.S. companies facing bureaucratic red tape in foreign countries would find their negotiations slowed or halted.

[square root] U.S. companies looking for U.S. Government help to break into fiercely competitive markets overseas would be left to their own resources - a strategy particularly difficult for the small- and medium-sized companies who are restricted by limited resources and rely on the assistance and information provided by Commerce.

[square root] More than 100 government-to-government advocacy projects supported by Commerce's worldwide network would cease. In one market alone, Kuwait, a further shutdown could result in the loss of three critical projects: a private power plant ($1 billion), the Sulaibiya waste water treatment plant ($500 million), and the Kuwait National Guard purchase of light armored vehicles ($500 million). These projects are planned to be showcased during the Amir's meeting with President Clinton in Washington, D.C. in February on the fifth anniversary of the Liberation of Kuwait. In India, work on advocacy projects valued at nearly $7 billion would grind to a halt, while in Korea, U.S. Government efforts to support the U.S. airline industry in a $4 billion contract would cease.

Trade Promotion

* Federal shutdowns in November, December, and January have already cost U.S. exporters an estimated $368 million in lost U.S. exports due to a lack of support from Commerce's U.S. Commercial Service global network. Support to state and local trade multipliers has been damaged and the nation's export promotion programs have been disrupted and in some cases irreparably damaged.

* In our Washington offices alone, a month-long government shutdown would keep 10,000 business inquiries from being answered - over 8,000 from small- and medium-sized firms with export problems or questions on how to expand their sales abroad. Additionally, approximately 6,000 telephone calls would go unanswered at the Trade Information Center (TIC), the government's one-stop-shop for export information. The TIC provides counseling and referrals during these calls, mostly to small businesses who cannot afford to pay for the resources the U.S. Government provides, usually for free.