Examining the NEI initiative

During his State of the Union speech in January 2010, President Obama announced the development of the National Export Initiative (NEI) and his administration’s goal of doubling US exports in five years – a laudable goal given the benefit to American businesses and workers in the midst of a difficult nationwide recession.

The Administration is trying to boost exports through improved advocacy and trade promotion efforts, increased access to export financing, removing barriers to trade, enforcing trade rules and promoting strong, sustainable and balanced growth.

This is obviously one area where government and industry need to continue the dialogue and to enhance our collective efforts for the betterment of American businesses and workers. To their credit, the Department of Commerce, the Export-Import Bank and others in government have reached out to the Automotive Aftermarket Supplier Association (AASA) and its Overseas Automotive Council (OAC) seeking input on ways to advance the NEI.

While meetings on this topic in Washington, DC are ongoing (and we believe productive), here are a handful of ideas from OAC members on ways to ramp up export promotion in the US.

Signing new free trade agreements that open or make US based exports more appealing in foreign countries is imperative. The Colombian market, for example, is ripe for growth in American automotive parts with a large population of aging American vehicles. Equally important, every free trade agreement signed between two other nations provides a disincentive for importers to consider buying US-based automotive parts.

Aside from the politics of free trade agreements, the government can take more practical steps to promote global growth for US businesses. An easy example would be to better leverage trade shows to connect US manufacturers with global buyers. Many foreign automotive component suppliers are offered subsidies and even travel stipends to exhibit at global trade shows under the flag of their country. And their governments place a large emphasis on making their exhibitors look prominent at the show with beautiful pavilion designs and well thought-out layouts that entice foreign buyers. The US pavilion, on the other hand, often has an American flag above simple booth construction hardware that would remind you of your garage shelving unit.

Sadly, the largest US companies typically opt out of the US pavilion to enhance their image and exhibit in a better location, while the smallest US companies trying to gain entrance into a new market are left looking like small fish in a sea of strong global suppliers. We should clearly display American manufacturers as the global leaders they are, and even consider subsidies that make it possible for US suppliers to promote their business in foreign markets.

Getting foreign buyers to domestic trade shows and inside the US to visit with US-based manufacturers is similarly important. We need to fast track VISAs for qualified international buyers to visit manufacturing facilities or attend US aftermarket part shows like the Automotive Aftermarket Product Expo in Las Vegas.

The US Commercial Service has an invaluable resource for US businesses looking to grow in foreign markets: feet on the ground. The staff I have met are bright, hard working go-getters that are serious about supporting US businesses. We need to empower these global resources to connect reputable international buyers with all relevant US companies, eliminating bureaucratic processes or internal revenue-generating targets that hinder the establishment of buying connections. Further, I would suggest that the department find ways to put relevant market research reports that are currently available in the hands of businesses, associations, export management companies, etc. to help our exporters develop their global growth strategies.

In addition, the administration needs to seriously consider financial relief to businesses that export. The administration should consider economic incentives that are World Trade Organization compliant to boost American exports.

The benefits of exporting are clear, and the President was wise to place an emphasis on this area of the US economy, but we can all do better to give the most innovative and resilient businesses in the world the opportunity to thrive in today’s global marketplace.

During his State of the Union speech in January 2010, President Obama announced the development of the National Export Initiative (NEI) and his administration’s goal of doubling US exports in five years – a laudable goal given the benefit to American businesses and workers in the midst of a difficult nationwide recession.

The Administration is trying to boost exports through improved advocacy and trade promotion efforts, increased access to export financing, removing barriers to trade, enforcing trade rules and promoting strong, sustainable and balanced growth.

This is obviously one area where government and industry need to continue the dialogue and to enhance our collective efforts for the betterment of American businesses and workers. To their credit, the Department of Commerce, the Export-Import Bank and others in government have reached out to the Automotive Aftermarket Supplier Association (AASA) and its Overseas Automotive Council (OAC) seeking input on ways to advance the NEI.

While meetings on this topic in Washington, DC are ongoing (and we believe productive), here are a handful of ideas from OAC members on ways to ramp up export promotion in the US.

Signing new free trade agreements that open or make US based exports more appealing in foreign countries is imperative. The Colombian market, for example, is ripe for growth in American automotive parts with a large population of aging American vehicles. Equally important, every free trade agreement signed between two other nations provides a disincentive for importers to consider buying US-based automotive parts.

Aside from the politics of free trade agreements, the government can take more practical steps to promote global growth for US businesses. An easy example would be to better leverage trade shows to connect US manufacturers with global buyers. Many foreign automotive component suppliers are offered subsidies and even travel stipends to exhibit at global trade shows under the flag of their country. And their governments place a large emphasis on making their exhibitors look prominent at the show with beautiful pavilion designs and well thought-out layouts that entice foreign buyers. The US pavilion, on the other hand, often has an American flag above simple booth construction hardware that would remind you of your garage shelving unit.

Sadly, the largest US companies typically opt out of the US pavilion to enhance their image and exhibit in a better location, while the smallest US companies trying to gain entrance into a new market are left looking like small fish in a sea of strong global suppliers. We should clearly display American manufacturers as the global leaders they are, and even consider subsidies that make it possible for US suppliers to promote their business in foreign markets.

Getting foreign buyers to domestic trade shows and inside the US to visit with US-based manufacturers is similarly important. We need to fast track VISAs for qualified international buyers to visit manufacturing facilities or attend US aftermarket part shows like the Automotive Aftermarket Product Expo in Las Vegas.

The US Commercial Service has an invaluable resource for US businesses looking to grow in foreign markets: feet on the ground. The staff I have met are bright, hard working go-getters that are serious about supporting US businesses. We need to empower these global resources to connect reputable international buyers with all relevant US companies, eliminating bureaucratic processes or internal revenue-generating targets that hinder the establishment of buying connections. Further, I would suggest that the department find ways to put relevant market research reports that are currently available in the hands of businesses, associations, export management companies, etc. to help our exporters develop their global growth strategies.

In addition, the administration needs to seriously consider financial relief to businesses that export. The administration should consider economic incentives that are World Trade Organization compliant to boost American exports.

The benefits of exporting are clear, and the President was wise to place an emphasis on this area of the US economy, but we can all do better to give the most innovative and resilient businesses in the world the opportunity to thrive in today’s global marketplace.