Secretary Brown: expanding exports 'dramatically' is priority for the U.S. Department of Commerce - Ronald H. Brown - Transcript

Business America, April 5, 1993

In a speech to the California Council for International Trade, March 26, in San Francisco, Calif., Secretary of Commerce Ronald H. Brown described the Clinton Administration's trade objectives and the goals of the U.S. Department of Commerce in helping U.S. companies expand their exports. The Secretary placed those issues in the broader context of President Clinton's economic program to stimulate the economy and develop a long-term investment strategy. He cited the deficit-reduction plan; the program to build the skills and adaptability of the workforce; the proposals for public investment in infrastructure; and the efforts to commercialize technology. Excerpts from Brown's speech follow.

We have entered a new era of global competition. My purpose today is to outline my vision of the role of the Department of Commerce in helping you compete effectively around the world...

As we work to fashion a more efficient economic engine here at home, we have to work just as hard to expand the markets for American goods overseas. That is why, earlier this month, President Clinton reaffirmed his commitment to an aggressive, expansive American trade policy.

He talked about the growing importance of exports to the American economy, noting that 7 million Americans hold export-related jobs, mostly in manufacturing. And these are high-wage jobs. As the President pointed out, the recent recession would have lasted twice as long, had it not been for the $480 billion in goods we now ship abroad every year.

As Secretary of Commerce, my priority is to help increase and expand American exports. And expand them dramatically.

We have put an end to the idea that industry and government are somehow natural enemies. We have to learn to work together.

We understand that we provide the framework--through export promotion, technological development and information dissemination--that helps you. But we also understand that it is you, the private sector, that will actually create thousands of new export-related jobs.

We propose a new partnership between the public and private sectors, whose centerpiece is a broad, concerted effort to break down barriers American exporters face overseas--so that you really have an opportunity to compete.

Let me outline seven specific areas in which the Department of Commerce intends to promote exports.

* First, we will work in concert with the U.S. Trade Representative to conclude multilateral trade agreements, such as GATT and NAFTA, that will provide the foundation for a generation of free trade and economic development for all their signatories. In entering negotiations, we recognize that free trade is moved forward by good agreements, not quick agreements.

Last week, I traveled to Mexico to meet with President Salinas. I used the trip and a speech to the Trilateral Chambers of Commerce to reaffirm the Clinton Administration's commitment to NAFTA and our approach to the supplemental agreements.

I found the quality and sense of purpose of the Mexican leadership to be extraordinary. And I was impressed with the resolve of President Salinas to solidify and strengthen political and economic reforms.

I am also convinced that our exports to Mexico will steadily increase. For example, I met with officials of GE and Bechtel who are part of a consortium that has been hired to build an electric co-generation plant in Mexico. This project alone will result in exports of $675 million worth of U.S. equipment and $70 million annually in U.S. exports of natural gas. And there will be more to come.

* Second, the Commerce Department will play an important role in expanding trade as a means of strengthening democracy around the world. No example is more pressing than that of Russia and the rest of the former Soviet Union.

Our policy to Russia must, in the President's words, "support democracy's success." Our reasons are both idealistic--because we support democracy--and pragmatic--because we support a growing world economy.

Earlier this month, Commerce awarded $500,000 grants to four U.S. trade groups as part of a pilot program to help smaller companies establish a commercial presence in the Newly Independent States. I also met with Deputy Prime Minister Alexander Shokhin, who agreed that we would co-chair a U.S.-Russia Business Development Committee. I will be going to Russia this spring for the first meeting. The Committee will work to remove obstacles to bilateral commerce and will seek to build a framework for business. The removal of these obstacles could open the floodgates to literally billions of dollars of U.S. investment, which Russia desperately needs to continue moving toward democracy and a free market economy.

* Third, the Department of Commerce will lead the creation and implementation of a dynamic export promotion strategy. As part of the new relationship between government and business, we are adopting a customer service focus. We must make the Department user friendly, to meet your needs by providing a one-stop export promotion service that can provide you with everything from exchange rates to local business leads.