Trade Promotion Coordinating Committee

1. Trade Promotion Coordinating Committee Commerce-chaired interagency task force: • Establish priorities. • Coordinate new programs and initiatives • Improve service delivery • Leverage resources / avoid duplication • Report to Congress Established mechanisms: • U.S. Export Assistance Centers • Trade Information Center – 1-800-USA-Trad(e) • Advocacy Center • export.gov

3. Core Trade Promotion Services Agencies • SBA: Working capital. Helps small firms that are new to exporting. Link to business counseling networks. • Commerce: Market entry services to “export ready” firms; advocacy for major projects; market access. • Ex-Im Bank: Loans guarantees, export credit insurance, and direct loans (to buyers). Official Export Credit Agency. • OPIC: U.S. investment & know-how in emerging economies: guarantees, finance, political risk insurance. • USTDA: Reverse trade missions, feasibility studies, international conferences. • Agriculture: Complete menu of services for agricultural goods, including finance. Services delivered by state groups. • State: Commercial Advocacy; Commercial function in Posts with no Commerce presence. • Energy: Assistance to renewable energy companies and policy guidance

4. TPCC Working Groups • Small Business -- Chair: SBA • China/India/Brazil -- Co-Chairs: Commerce, Ex-Im • Next Tier Markets -- Co-Chairs: Commerce & State • Colombia, Indonesia, Saudi Arabia, South Africa, Turkey, and Vietnam • Renewable Energy -- Co-Chairs: Commerce, Energy • Advocacy -- Co-Chairs: Commerce & State • Services Sector -- Co-Chairs: Commerce & USTR • Analysis and Data -- Co-Chairs: Commerce & USTR

5. Why Exporting Has Been Elevated: Jobs

6. Why Export? The Economy

7. Why Export? the Future Exports provide from one quarter to one half of the growth in GDP in many quarters. In 2010, exports contributed as much to economic growth as business investment. GDP = C + I + G + (X - M) • GDP = Gross Domestic Product • C = Consumption (Private) • I = Investment (Housing and Business • G = Government Spending • X-M = Net exports (exports minus imports)

8. Why Firms Should Export: Our Message Exporters are more competitive, with diversified markets and knowledge of foreign competition. • They can pay wages 13-18% higher than other firms. • Workers at exporting plants enjoy 37% higher benefits. • Exporters are 8.5% less likely to go out of business. Foreign markets are attractive. • More than 1 billion new middle class consumers worldwide in the next 15 years. • Small businesses are increasingly important to overall exports. • Small businesses have steadily increased their share of overall U.S. exports from 26% in 2002 to 33% in 2009.

9. Growth Markets

10. Growing Role of Small Business Exporters

11. The Challenge: U.S. Business Awareness & Engagement • BROADEN: Increase the number of companies that export. • The 276,000 that currently export represent only one percent of all U.S. companies. • DEEPEN: Increase the number of countries to which small businesses export. • Of all the U.S. companies that export, 58% export to only one country, representing only 5% of the value of all exports. • PUBLIC ROLE: Help firms face hurdles and barriers to exporting, i.e., information, financing, market access

12. What is the National Export Initiative (NEI)? “So tonight, we set a new goal:  We will double our exports over the next five years, an increase that will support two million jobs in America.” President Obama State of the Union January 27, 2010 “Prior to the NEI, export promotion may have beena some-of-the-time focus…The NEI makes it an all-the-time focus.” Secretary Locke National Press Club February 2010 12

13. NEI: Key Areas of Focus JOB CREATION

14. National Export Initiative: Chronology • January 2010: State of the Union • March 2010: Executive Order • September 2010: NEI Report to the President (Export Promotion Cabinet) • June 2011: Annual National Export Strategy Report to Congress (Trade Promotion Coordinating Committee) • 2012: Strong White House push on new priorities (to be reflected in 2012 NES).

15. NEI: Priorities • Small Business: marketing, training, matchmaking, finance, staffing, technology • Federal Assistance: domestic and foreign trade shows, reverse trade missions, key markets • Trade Missions: frequency, size, leadership • Commercial Advocacy: schedules, outreach • Export Credit: access, sectors, outreach • Macroeconomic Rebalancing: sustain, rebalance • Reducing Barriers to Trade: access, FTAs, WTO, enforcement • Services Sector: outreach, access, trade missions, education, capacity bldg, data

16. 2012: NEI Works in Progress • Priority Markets & Sectors • Localizing the NEI: States, Metros • Export.gov 2.0 and BusinessUSA.gov • New White House Priorities: • Interagency Trade Enforcement Center, • Federal export promotion infrastructure, • Small business outreach • Marketing – Public and private media channels • Trade Promotion– expanding export opportunities • Trade Financing – Community Bank engagement

17. National Export Strategy: Highlights • New client intake and referral processes. • FTA Tariff Tool (export.gov/fta/ftatarifftool) • Elevated trade missions and foreign/domestic trade shows. • Renewable Energy Initiatives (export.gov/reee). • Elevated advocacy cases (including White House). • Increased export credit from Ex-Im Bank and SBA. • FTAs: Korea, Colombia, Panama. • Deep policy engagement: China, Brazil, India. • Enforcement: Setting up Interagency Trade Enforcement Center.

18. Resources Resources: • Export.gov • 1-800 USA-Trad(e) • Export Programs Guide • http://export.gov/exportprogramsguide/index.asp • 2010 NEI Report to the President • http://export.gov/nei/ • 2011 National Export Strategy • http://trade.gov/publications/pdfs/nes2011FINAL.pdf