It is the Obama administration’s goal to double exports in five years according to Mark Drajem in his article, “Locke Pledges Aid for Small U. S. Business Exports, Update Report 1,”, Bloomberg Business Week issue. This increased emphasis on small business and exports should add two million jobs to the economy.
The additional money that is now targeted to small businesses for export financing and the new emphasis being placed on unfair trade barriers to the United States should make a positive difference according to Secretary Locke.
Locke feels that doubling exports in five years is entirely realistic within the framework of the U.S. strategy. This strategy entails the increase of funding to $6 Billion a year from $4 Billion for small businesses through the U.S. Import-Export Bank; increasing the number of foreign service officials in fast growing nations like China, India and Brazil; and fighting unfair trade barriers to U.S. made products.
This new emphasis on increasing exports by the small business sector, according to Locke, should address an economic blind spot in the U.S. economy. In recent years, the U.S. has allowed international competition to weaken its manufacturing superiority. This increase of export funding and greater emphasis on combating unfair trade barriers to American manufactured products should make a positive difference.
Finishing trade agreements with South Korean, Panama, and Columbia is vital to the U.S.’s export expansion according to Secretary Locke. These three accords were negotiated by the Bush administration and are awaiting congressional approval. U.S. exports to South Korea will jump $11 billion if the deal is approved by congress according to the U. S. International Trade Commission.
Ed Gresser of the Democratic Leadership Council and Howard Rosen, a fellow at the Peterson Institute for Economics, feel the goal of doubling exports in five years can be achieved. Gresser indicated that increasing promotion alone won’t achieve the goal. The new emphasis on having a strong export program should include countries with huge mass markets like China, India, Canada, and countries in Europe.
Yuan is Key
Peter Morci, an economist at the University of Maryland, believes the U.S. must crack the China market in order to double exports. Mr. Morci feels China must raise the value of their currency, the yuan. Obama has vowed to get much tougher with enforcing trade rules with China.
Obama will also be pressing China on increasing the value of their yuan. Marc Drajem reports that the yuan has been pegged at 6.83 per dollar since July of 2014. China has ignored calls for raising the yuan from the U.S. and several European countries.
Small Business and Exports
Increased government funding for small business exports is creating a vital jobs engine for the United States. President Obama is aiming for an additional 2 million jobs in five years. New emphasis by the U.S. on fighting against trade barriers that are unfair to American manufactured products and pressures being placed on China regarding their yuan should significantly enhance U.S. exports.