U.S. Chamber Testifies on Promoting Export Success for Small and Medium Sized-Businesses

U.S. Chamber Testifies on Promoting Export Success for Small and Medium Sized-Businesses

WASHINGTON, D.C.—In testimony to Congress today, the U.S. Chamber of Commerce's Director of TradeRoots Liz Reilly outlined how federal support to help small and medium-size businesses to export could bring dramatic gains to the economy.

"America cannot have a growing economy or lift wages and incomes unless our businesses have the tools to sell to customers beyond our borders," Reilly said in testimony before the Senate Commerce, Science, Transportation Subcommittee on Competitiveness, Innovation and Export Promotion. "If more U.S. small businesses were able to seize export opportunities, the gains could be immense."

A World Bank study found that each dollar increase in export promotion brought a 40-fold increase in exports. The gains were especially large for countries that spend less than the average. As it happens, the United States spends just one-sixth of the international average helping its small businesses to export.

"The assistance offered by the federal government needs to be promoted more effectively," Reilly said. "The services, expertise, and dedication of representatives of the U.S. Commercial Service, Export-Import Bank, and Small Business Administration are world class, but I have seen first-hand from Bakersfield to Buffalo that many U.S. companies are not aware of the government services that are available to help them break into new markets. This isn't the fault of America's small business owners, rather it reflects the inadequate resources dedicated by the federal government to export assistance and a failure to promote these services adequately. It is for this reason that TradeRoots holds events across the United States highlighting the resources that are available to companies such as Export Assistance Centers, Small Business Loans, and World Trade Centers."

Reilly cited the U.S. Chamber's recent study, Trade Action—Or Inaction: The Cost for American Workers and Companies, which found the United States could suffer a net loss of more than 380,000 jobs and $40 billion in lost export sales if it fails to implement its pending trade agreements with Colombia and Korea while the European Union and Canada move ahead with their own agreements with the two countries. It also found that while "Buy American" rules in the Recovery Act will create a limited number of U.S. jobs, the gains will quickly evaporate if other countries implement "buy national" policies in their own stimulus programs. If foreign governments lock U.S. companies out of just 1% of this total spending, the net U.S. job loss could surpass 170,000. Finally, the study found that the U.S. failure to implement NAFTA's cross-border trucking provisions has resulted in $2.2 billion in higher costs for U.S. families and companies, $2.6 billion in lost U.S. exports, and more than 25,000 lost jobs for American workers.

TradeRoots is the only sustained, national trade education program dedicated to raising grassroots support and public awareness about the importance of international trade to local communities.

Reilly's complete testimony is available at:
http://www.uschamber.com/issues/testimony/2009/091006export.htm

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

# # #