US President Barak Obama made the keynote speech at the Export-Import Bank of the United States’ (US Ex-Im) annual conference, promising a new scheme to encourage trade finance.
The National Export Initiative (NEI) is designed to increase financing, advocacy and assistance for American businesses to locate internationally and win new markets.
The first target of the NEI is to substantially increase access to trade financing for export business, with focus being directed towards small and medium-sized enterprises (SMEs).
Obama applauded US Ex-Im chairman and president Fred Hochberg’s efforts in fiscal year 2009, as US Ex-Im authorised US$21bn in loans, a 50% increase from the previous year.
Furthermore, Obama pledged to increase the support offered by US Ex-Im to SMEs by a further US$2bn per year.
It was not all congratulations, however, as Obama recognised the failings in America’s systems which have negatively affected trade finance in the US.
In a speech addressed to the US Ex-Im conference, he comments: “Another obstacle that our exporters face is that the federal government frankly just hasn’t done a good enough job advocating for them abroad – at least compared to the advocacy that other countries are engaging in. That’s why, as the second part of the National Export Initiative, the United States of America will go to bat for our businesses and our workers.”
He went on to explain that as president, he will personally be visiting strategic countries to promote export trade with the US, with a planned trip to Asia Pacific, which he marked as a key region for the US trade, in the pipeline.
He adds: “I’ll highlight the role that American businesses play there, and underscore how strong economic partnerships can create jobs on both sides of the Pacific while advancing both regional and global prosperity. Going forward, I will be a strong and steady advocate for our workers and our companies abroad.”
The president also highlighted three key economies that he is keen for US trade relations to strengthen their relationship with; South Korea, Panama and Columbia.
He also brought up the considerable changes proposed for the US export control system, particularly for products with encryption capabilities such as mobile phones and network storage devices.
Currently, exporters must endure a technical review that can last up to 90 days, but new technology means that the review will now be online and last only 30 minutes.
Furthermore, he proposed to eliminate unnecessary obstacles for exporting products to companies with dual-national and third-country-national employees as both exporters and foreign consumers of these goods currently have to comply with two conflicting sets of standards.
Obama comments: “They’re running on two sets of tracks, when they could be running just on one. We’re moving towards harmonising those standards and making it easier for American and foreign companies to comply with our requirements without diminishing our security.”
Speaking more generally, Obama referred to his recent State of Union address when he set a goal of doubling US exports over the next five years.
But he suggested that while the US has tried to maintain its core values in export trading and trade finance, other countries have surpassed the US through free trade.
He says: “Those who would once support every free trade agreement now see that other countries have to play fair and the agreements have to be enforced, otherwise we’re putting America at a profound disadvantage. Those who once would oppose any trade agreement now understand that there are new markets and new sectors out that that we need to break into if we want our workers to get ahead.”
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