On March 11, 2010, President Barack Obama signed an executive order that created the National Export Initiative (NEI). The stated goal of this program is to spend the next five years doubling the amount of goods the U.S. exports. It would take the U.S. from exporting $1.5 trillion worth of goods and services (in 2009) to providing $3.14 trillion (by 2015). http://www.whitehouse.gov/the-press-office/executive-order-national-export-initiative.
Increased exports were one part of the President’s plan to stimulate the country’s economic growth. But what kind of measurable impact will it actually have on import/export businesses, especially smaller players?
The following are just three basic areas where this initiative could help your smaller export/import business thrive:
- Increased access to more and deeper resources. The cabinet and network created by this executive order (Export Promotion Cabinet and the 20 federal agencies that make up the Trade Promotion Coordinating Committee (TPCC)) has made one of its main priorities helping small businesses to compete globally. The Export-Import Bank is making loans more available to smaller enterprises, as well as providing technical assistance for new exporters. The result is better and more information being readily available regarding the process of setting-up and running a successful export/import business. [For more information on the Export Promotion Cabinet and TPCC, visit page 2 of this document: http://www.whitehouse.gov/sites/default/files/nei_report_9-16-10_full.pdf ]
- Help with marketing. The NEI will sponsor representatives for what are called “trade missions.” Trade missions are a way to display some of our domestically produced products to global buyers. According to the initiative, there will also be dedicated staff at all American embassies with the responsibility of connecting U.S. companies with increased international opportunities. The first NEI Report offers additional information about how well the U.S. has been connecting around the world: http://www.whitehouse.gov/sites/default/files/nei_report_9-16-10_full.pdf
- The government will be working internationally to remove barriers that keep U.S. companies from trading effectively in global markets. In the report linked above, the Commerce Department reported that there are 50 barriers in 33 markets that are negatively impacting U.S. trade abroad. One of the first renewed markets was China, who agreed to import U.S. pork products. This could result in as much as $250 million per year exported to just one newly opened market – a clear example of the potential that could be realized. According to the report, trade rules will also be more strictly enforced than they have been in the past which could help smaller players to remain competitive, globally.
The NEI’s Targeted Business Sectors
There are some sectors of the business world that the NEI has been ordered to target as having high export potential. As such, the NEI plans to prioritize businesses in renewable energy, advance vehicle technologies, healthcare and biotechnology, medical devices, and agricultural products. Service jobs will also become a targeted U.S. export.
If you are running a smaller business in one of these targeted industries, your chances for benefiting from the NEI’s progress and programs increases substantially.
Visit the NEI Site – Learn More
The goals of the NEI are ambitious and could be advantageous for businesses of all sizes. With so many small business owners struggling to find balance in a challenged economy, the NEI can become another gateway to success for the right businesses.
To learn more about the NEI and what it might offer you and your import/export business, visit the website here: http://www.export.gov/nei/index.asp
THIS IS NOT INVESTMENT, TAX OR LEGAL ADVICE. Consult with a financial advisor, accountant or attorney before making important decisions in these areas.
