President Barack Obama speaks at the 2016 SelectUSA Summit
America is Crucial to the Global Economy
Ken Hyatt is the Acting Under Secretary for the International Trade Administration
The best place in the world to invest is the United States. That
was the undeniable message of this year's SelectUSA Summit. That
message was delivered by President Obama, Secretary Pritzker, as well as seven
other members of the president's cabinet, four U.S. governors, and 22 U.S.
chiefs of mission. In all, 2,500 attendees representing 70 foreign markets and
the United States were present. But our work to bring foreign direct investment
to the United States does not stop with the Summit. The SelectUSA team will
continue its work to facilitate FDI to the U.S., as they have since 2011 in
bringing more than $22 billion to our shores.
But while the U.S. is the best place in the world to invest,
it is hardly the only country worth doing business with if you are an exporter in
the United States. U.S.
exporters can look to our largest market, Canada.
Nearly $2 billion in cross-border trade occurs every day between our two
countries. Canada stands today as the top export market for 35 of our 50 states.
And given its proximity and that it is a free-trade partner, Canada should be
part of many U.S. exporters' business plans.
that matter, U.S. exporters should also look to Peru.
Between 2003 and 2013, Peru was Latin America's fastest growing economy,
showcasing an annual growth rate of 6.3%. As for the future, experts predict
that the Peruvian economy will grow at 3.7% and 4.1% this year and next year
respectively. Peru also happens to represent our 6th largest export
market in Latin America, with total exports reaching just under $9 billion last
year. Ever since we entered into our free trade agreement in 2009, when 80% of
tariffs were removed immediately upon enactment, U.S. exports have grown at a
rate of 11% per year.
Then, there is Chile. 30 years ago, Chile's GDP per capita
was among the lowest in South America. Today, after
a 20-plus year period with annual GDP growth averaging 5%,
the country ranks #1 in a variety of economic categories among its Latin
American counterparts: GDP per capita, Ease of Doing Business, and Smart Cities
development. Currently, Chile is the 4th largest market in Latin
America for U.S. exports, and ever since the U.S. and Chile entered into its
bilateral trade agreement in 2004, two-way trade has quadrupled.
there is the 3rd largest economy in the world, Japan.
Japan was our 4th largest goods export market last year, with more
than $62 billion in exports. Japan represents enormous promise when you
consider that it boasts one of the largest and fastest growing e-commerce
markets in the world, that it possesses one of the highest per capita income
levels in all of Asia, and that it boasts middle class consumption levels that
rank second in the world to only the U.S.
All of this leads to the two common threads that tie these
For Peru and Chile, they represent two of the seven destination
markets for our Trade Winds--Latin America business forum and trade mission,
taking place from September 6th -13th. Our team will
connect U.S. attendees with potential local partners and business opportunities
in all seven markets. Registration is still open for the business forum portion
in Santiago, Chile, Sept. 7th-9th, where you can meet
20-plus market experts, Latin American business leaders, government officials,
and companies that are successfully exporting to the region. It's an incredible
opportunity for U.S. businesses, and I encourage you to register now.
Perhaps more importantly, Canada, Chile, Japan, and Peru are all partner markets in the
Trans-Pacific Partnership. When it comes to Japan, TPP will
eliminate 100% of tariffs—on health products, chemicals, information and
communications technologies, machinery, and metals and iron ores—on the very
first day of enactment. As for the other three nations, by moving these existing free trade
partnerships into a regional agreement, many of the obstacles that often
prevent SMEs from exporting will be removed: including committing partner
markets to advance rulings on customs decisions; making express shipments duty
free if they are below a certain value; and enhancing regulatory coherence. You can find out more about the
benefits of TPP here.
Thanks to all of you for the
work you do to support U.S. exports and business investment.
The 2016 SelectUSA Investment Summit wrapped up earlier this week, but the action hasn't stopped. Representatives of international companies are traveling to other parts of the country as they search for locations to establish or expand operations. U.S. economic development organizations (EDOs) from every corner of the United States have packed up their booths, but many of them are still meeting or hosting investors. And the team at SelectUSA and the U.S. Department of Commerce is fielding inquiries, receiving feedback, and providing services to companies and EDOs.