In his State of the Union message, the president called for a new
initiative to double exports within the next five years. He said that an
increase in exports will create a new source for jobs and thus stimulate
the economy. Indeed, exporting does create jobs in shipping and production
of goods, but the number of jobs and the length of time to create them is
uncertain. The Deppartment of Commerce says that less than one percent of
U.S. companies export. But Rochelle Lipsitz, acting Assistant Secretary
for Trade Promotion, believes that “increasing this number, even by a
small percentage, could have a big impact on the U.S. economy."
The International Trade Administration (ITA) says that exports declined
from 2008 to 2009, but that "on a monthly basis, November represents
the seventh consecutive month that goods and services exports have
increased." Figures for December of 2009 have not been reported yet.
The trade deficit remains, however, with imports exceeding exports for the
past year.
The largest export markets for U.S. goods through November 2009 were
Canada ($186.5 billion), Mexico ($117.2 billion), China ($61.2 billion),
Japan ($46.2 billion), and the United Kingdom ($42.0 billion). The top
export products were machinery, electronics, vehicles, and aircraft parts.
Critics of the administration's efforts to rely on exports to stimulate
the economy point out that many businesses are not suited for exporting
their goods. Andrew Wilson writes in the American Spectator: "What
makes the president think that thousands and thousands of companies across
the land would want to rebalance their businesses in such a way as to put
substantially more emphasis on serving customers outside the United
States, and less on serving customers inside the United States? If the
point is to create U.S. jobs at the expense of jobs in other
countries, then the president must be intent on starting or bringing us to
the brink of some sort of a trade war."
There is a maze of U.S. regulations and foreign trade requirements that
businesses must navigate to enter the export market. Language, customs,
and business practices of other countries are often barriers to expediting
sales and finding markets for products. For this reason the ITA has set up
a special website, www.export.gov,
to help businesses understand the exporting process. It also offers
information as to what marketing opportunities are available in other
countries and what to expect when doing business in them. U.S. companies
encountering trade barriers abroad can file a complaint with the ITA to
get help in resolving the problem. Some common problems, according to the
ITA, are: copyright and trademark infringement, customs procedures not
uniformly applied, lack of competitive bidding, foreign government
subsidies for domestic suppliers, burdensome requirements not applied to
domestic manufacturers, influence pedaling, bribery, and corruption by
foreign officials.
Some exporters will be required to get a license to conduct a certain
type of export transaction. Which agency issues the license will depend on
the product to be exported. Licensing the export of nuclear materials is
done by the Nuclear Regulatory Commission. The Department of Energy
regulates the export of natural gas and electric power. The U.S. Drug
Enforcement Administration regulates the export of controlled substances
and precursor chemicals. The USDA guides exporters in exporting meat,
poultry, and egg products, including packaging, labeling and other special
conditions. The U.S. government also requires that "in certain
situations involving national security, foreign policy, short-supply,
nuclear non-proliferation, missile technology, chemical and biological
weapons, regional stability, crime control, or terrorist concerns" a
dual export license be obtained. It states: "The license requirements
are dependent upon an item's technical characteristics, the destination,
the end-use, the end-user, and other activities of the end-user."
Will the national initiative for exports be enough to encourage small
businesses and farmers to sell their goods overseas? Of course it will
depend on how profitable the foreign market is for any given business. The
government is eager to promote exporting and will go to great lengths to
accommodate businesses who want to enter the global markets. There are
proposals to eliminate some of the export regulations that are considered
burdensome to exporters. The American Association of Exporters and
Importers says that reform of the "Cold War-era export control
system" is needed before there can be a substantial increase in
exports. Such reform is supported by manufacturers who want to be more
competitive in the global market. Job creation from exports, they say,
will come from business, not the government.