The ‘unprecedented’ year in exports

Photo: Richard During

President Barrack Obama is already claiming at least a partial victory in his campaign to boost American jobs at home by selling more products abroad. In its 2011 review of accomplishments, the Office of the U.S. Trade Representative said Obama’s National Export Initiative – designed to add two million new American jobs by 2014 – has already led to 16.1% increase in American exports through to October 2011.

The increase exceeds the targeted 15% growth mark at this time. “In 2011, the Obama Administration achieved unprecedented results on trade,” said U.S. Trade Representative Ron Kirk. Obama’s goal is to double exports from $1.57 trillion in 2009 to $3.14 trillion in 2014.

An aggressive and outward-looking trade policy is a departure from Democratic administrations of the past. Democrats have traditionally opposed free trade agreements, for example, because of concerns about American jobs, as well as labour rights and environmental issues in foreign countries.

“Our painstaking work on behalf of American businesses, workers, and families facilitated congressional approval of three trade agreements, along with legislation to renew two trade preference programs and strengthened Trade Adjustment Assistance – all on one day,” Kirk said.

FREER TRADE

But 2011 marked the securing of long-stalled free trade deals with Korea, Colombia and Panama, and the escalation of talks in the Trans-Pacific Partnership (TPP) with Australia, New Zealand, Singapore, Vietnam, Brunei, Chile and Peru. The TPP partners have now established the framework for what they call a true 21st century trade partnership. The U.S. currently has free trade agreements in place, or about to implemented, with 20 countries around the globe.

The U.S. also flexed its trade muscles this past year, and warned it has no intention of backing down on demands that foreign trading partners open up their markets. In November, Canada, Japan and Mexico made overtures to join the TPP, moves which were deferred by the partners because of outstanding trade practices that do not adhere to the standards imposed by current TPP members. For example, Canada and the U.S. have had a long-standing dispute over Canada’s supply management system for dairy, egg and poultry producers that effectively keep out foreign imports.

The nine-page review listed a number of other trade accomplishments in 2011, big and small, from launching the FTA Tariff Tool, a free online tool to help businesses navigate the world of trade tariffs, to winning a trade dispute with the Philippines over discriminatory taxes on U.S. distilled spirits, to securing a bilateral investment treaty with Rwanda. Some of the highlights:

WTO WINS

The U.S. won the appeal in what is described as “the largest commercial case in the history of the World Trade Organization.” The U.S. took on the European Union for giving US$18 billion in subsidies to Airbus, which competes aggressively with Boeing Co. in both domestic and foreign markets. The WTO appeal body ruled that the subsidies were illegal, and hurt the U.S. aerospace industry and its workers through lost sales in major markets.

The U.S. also helped to bring Russia into the World Trade Organization this year, said the USTR, by collabourating with Russia and with other WTO members on the accession negotiations. Russia, the largest economy outside the WTO, has been negotiating membership to the international trade body for nearly two decades.

CHINA ADVANCES

The U.S. also claimed some successes in 2011 in trading matters with China, including winning commitments from China to crack down on copyright infringement and the illegal use of software and to improve access to government procurement contracts. The U.S. also won a WTO decision in July that China.must ensure access to raw materials. Chinese export restraints – including export quotas, duties, and minimum export prices – on a number of industrial raw materials, were giving Chinese manufacturers an unfair advantage.

“We have used every available enforcement tool to hold China accountable for its commitments to play by the rules, provide a level playing field, and protect intellectual property,” Kirk said. The U.S. had a US$272-billion trade deficit with China in 2010.

Besides its advances abroad, the USTR was also at work at home. In 2011, Congress was convinced to renew the Trade Adjustment Assistance program. The 2009 law designed to help American workers get re-training to compete with new global trading partners was expanded to include service workers as well as those in manufacturing.

For the complete report, go to the Weekly Trade Spotlight: USTR’s 2011 Year in Review