When Politics and Trade Collide

Tweet

What's your reaction to critics who accuse U.S. businesses overseas of profiting from the lax labor and environmental policies of foreign governments, particularly in places like China?

This is a major problem. It is precisely this disregard for labor rights and environmental protections that create unfair advantages for China and others. The root cause is not American businesses, but the governments that allow this to happen. This is why we must immediately insist on a free trade agreement with China. If I were in a position of power, this would be my number one agenda item. China's unrelenting destruction of its environment has created potentially devastating consequences for us all. Labor rights are a most fundamental human right that we must insist upon from all our trading partners. The most effective way to bring about meaningful change is to regulate labor rights and environmental protections through verifiable and enforceable trade agreements. Harmonious trade relations with the United States are one of the most important objectives of any foreign government. We have the ability to change things for the better if we are willing to stand up for what is right.

What are the benefits for a smaller business of going global? What challenges do they face?

Dollar for dollar, exports pay 17 percent more wages and employ five times more people than our imports. They provide jobs and opportunities for millions of American families to pursue their dreams. New overseas markets allow small companies to compete with larger companies in markets hungry for U.S. products and services. In many instances there is less competition and greater opportunities to become a market leader.

Going global allows you to spread your risk, increase your opportunities and learn things that can help you more efficiently compete in the domestic U.S. market. It is absolutely essential for a small business to survive and thrive.

Ironically, many of the challenges U.S. exporters face are brought about by the U.S. itself. The Foreign Corrupt Practices Act of 1977 is a law that our European and Japanese competitors do not have to contend with. Our tax code discriminates against American exporters and ex-patriots that are front-line troops. We are very much behind Europe and China in concluding important trade agreements that level the playing field. The world trading system is corrupt and skewed against American exporters and we have an $800 billion deficit to prove it.

Unfortunately, we still have no comprehensive plan or trade vision to deal with it. It is estimated American companies are cheated out of $250 billion annually in intellectual property theft in China alone.

What role does the government play in helping smaller businesses expand overseas?

Over 70 percent of American exports are done by small and medium-sized enterprises. Each dollar that American taxpayers have invested in the Small Business Administration's export finance program has yielded over $500 in export sales. This is probably the single most successful export promotion program, dollar for dollar, in the entire U.S. government. Both the Export Import Bank and SBA programs need to be made more accessible with increased borrowing limits and fewer restrictions. These programs are the life-blood of American exporters.

Our U.S. Export Assistance Centers throughout the United States and our Foreign Commercial Services Offices at our embassies overseas must be provided resources needed to promote and defend our exporters.

Our competitors have armies of lawyers and trade specialists working feverishly to clear away barriers targeted against their exports. The U.S. Department of Commerce, which is responsible for enforcing our trade agreements and promoting American exports, is woefully understaffed. Gross violations impacting thousands of jobs go unchallenged allowing foreign governments to trample American interests with not even the slightest resistance.

What are the current global hot spots for American small businesses? Where are the emerging or overlooked markets?  

Opportunities for American exporters are plentiful. The Arabian Peninsula is exploding with new construction. Contrary to what many believe, American business is very welcome and our products are in great demand. The Southeast Asian countries of Indonesia, Malaysia, the Philippines, Singapore, and Thailand have always been receptive markets to American exporters. They are currently experiencing a time of relative stability and good growth. Vietnam is starting to emerge as an interesting market as the Vietcong Generals in leadership positions are dying off and finally turning over power to a generation not impacted by the war.

 PREV  1 | 2