EXPORT PROMOTION & INVESTMENT

1. EXPORT PROMOTION & INVESTMENT Ann (Nai-Ying) Wang November 13, 2008

2. EXPORT PROMOTIONOne out of every 10 Americans owes his or her job to exports… • Definition Incentive programs designed to attract more firms into exporting by offering help in product and market identification and development, pre-shipment and post-shipment financing, training, payment guaranty schemes, trade fairs, trade visits, foreign representation, etc.

3. DIRECT INVESTMENT • Definition international investment that reflects the objective of a resident entity in one economy obtaining a lasting interest in an enterprise resident in another country

4. Create a more efficient economy Employment opportunities Exchange of technologies Technology spillovers Human capital formation Contribute to global trade integration Create more competitive in business environment Enhance enterprise development BENEFITS FROM EXPORT & INVESTMENT

6. The Export Enhancement Act of 1992 Trade Promotion Coordinating Committee (TPCC) was created for carrying out Federal export promotion & export financing programs . In fiscal year 1995, 6 major government export promotion programs came to nearly $2 billion.

7. The Export Promotion Enhancement Act of 2008 Amends the original Export Enhancement Act to establish in the Executive Office of the President the Office of Trade Promotion. (Currently, there exists a Trade Promotion Coordinating Committee (TPCC), which the Office shall replace.) Requires the Office to perform duties currently assigned to the TPCC, as well as advise the President and others within the Executive Office on matters relating to trade promotion policies and programs of the U.S. Government.

8. EXPORT PROMOTION AGENCIES Boost exports and reduce trade deficits • Purpose a.country image building b.export support services c.marketing d.market research and publications

9. President Reagan’s 1983 Statement on International Investment Policy • The U.S. belief that FDI should be governed by market forces • Confirmed U.S. commitment to create attractive market by providing fair, equitable, and non-discriminatory treatment

10. President Bush’s 2007 Statement on Open Economies • Affirmed support of FDI • Reiterated the U.S. commitment to provide fair and non-discriminatory treatment • U.S. places high value on FDI & seeks to be the best and safest destination for FDI

11. US Policy on FDI • Longstanding policy of promoting and welcoming FDI • FDI is an important vehicle for economic growth • FDI promotes innovation and technology

12. CONCERNS • Lack of consistent approach Need to understand different legal regimes of 50 states

13. Facilitating and Promoting FDI Invest in America Created on March 7, 2007; lead by Aaron Brickman • outreach to foreign governments and investors • support for state governments’ investment promotion efforts • addressing business climate concerns by serving as ombudsman in Washington for the international investment community

15. NEW DIRECTIONS • Broaden export promotion programs to include export training and workshops • Develop global marketing networks • NAFTA bilateral amendments • Work on all trade agreements contain strong and enforceable labor, environmental & health and safety standards

16. WHAT’S NEXT • Domestically- educate potential candidates • Improve existing agreements & form new beneficial ones • Bring emerging markets up to global standards

17. THANK YOU!

18. REFERENCES Stiglitz, Joseph & Andrew Charlton. Fair Trade for All. Oxford University Press Inc. New York, 2005. Spitzer, Robert. “U.S. Versus Competition: Who’s Spending Bigger Bucks on Export Promotion?” FAS online. 3 November, 2008. <http://www.fas.usda.gov/info/agexporter/1998/November%201998/usversus.html> “The mistakes of export promotion agencies.” The World Bank. 22 October, 2008. <http://psdblog.worldbank.org/psdblog/2006/05/where_have_expo.html> “Export Promotion Agencies: what works ans what does not.” The World Bank. 22 Ocotober, 2008. <http://siteresources.worldbank.org/INTRANETTRADE/Resources/239054-1126812419270/Trade_Note30.pdf> Shields, Janice. “Export Promotion Programs.” International Relations Center. 22 October, 2008. <http://www.fpif.org/briefs/vol2/v2n34exp.html> Asad, Hasan. “Devaluation and export promotion.” BNET.com 25 October, 2008. <http://findarticles.com/p/articles/mi_hb092/is_/ai_n28631209> “FDI increases in developing world.” Financial Times Business. 3 November, 2008. <http://www.fdimagazine.com/news/fullstory.php/aid/2347/FDI_increases_in_developing_world.html> “US gets serious about investment promotion.” Financial Times Business. 3 November, 2008. <http://www.fdimagazine.com/news/fullstory.php/aid/2022/US_gets_serious_about_investment_promotion.html> “Fact sheet: first annual report of the Trade Promotion Coordinating Committee - 'Toward a National Export Strategy: U.S. Exports Equal U.S. Jobs.” BNET.com 5 November, 2008. <http://findarticles.com/p/articles/mi_m1584/is_n41_v4/ai_14658081/print?tag=artBody;col1> “Promoting Trade and Investment.” International Trade Administration. 1 November, 2008. <http://www.trade.gov/promotingtrade/index.asp> “Annual Report 2007.” US Trade and Development Agency. 1 November, 2008. <http://www.ustda.gov/pubs/annualreport/USTDA_AnnualReport_2007.pdf> Zarkey, Lyuba & Gallagher, Kevin. “Making FDI work for sustainable development.” Tufts University. 7 November, 2008. <http://ase.tufts.edu/gdae/publications/articles_reports/KG-LZ_FDI_report.pdf> “World Development Indicators.” The World Bank. 5 November, 2008. <http://mutex.gmu.edu:3965/ext/DDPQQ/showReport.do?method=showReport> “H.R. 5883, The Export Promotion Enhancement Act of 2008.” Washingtonwatch.com. 9 November, 2008. <http://washingtonwatch.com/bills/show/110_HR_5883.html>