Boosting regional exports

Editorial

We are skeptical of many of President Barack Obama's economic initiatives, but his effort to promote trade is a sound policy that appears to be paying benefits.

Frank Sanchez, a Tampa native who is Obama's undersecretary of commerce for international trade, is spearheading those efforts and can point to some impressive results.

In the last year, U.S. companies sold $1.93 trillion in exports, an increase of 15 percent from the prior year. The nation, Sanchez tells us, is on target to reach the president's ambitious goal of doubling exports by 2015.

To continue that momentum, Sanchez visited his hometown Monday and signed an International Trade Administration agreement to assist the region in expanding exports.

Among those on hand were Tampa Mayor Bob Buckhorn, U.S. Rep. Kathy Castor, Hillsborough County Commissioner Sandra Murman, Port of Tampa director Richard Wainio and Tampa International Airport CEO Joe Lopano.

A lot of politics is involved in such affairs, but boosting local trade is generally a bipartisan effort. There is no doubt companies can generate jobs when they find new customers.

The Brookings Institution will participate in the partnership, helping 25 metropolitan areas, including Tampa, develop detailed strategies. Sanchez's International Trade Administration will ensure local companies do not face unfair foreign trade barriers.

This latest emphasis on trade is not to suggest that West-Central Florida has ignored foreign markets. The region is the second-leading exporter in the state, with $6.5 billion in exports in 2009.

Still, countless trade opportunities remain untapped.

Sanchez says 95 percent of the world's consumers live outside the Untied States, yet only 1 percent of America's companies export. In contrast, 12 percent of German companies export.

Even a modest increase in exports can have a dramatic impact on the economy.

"In 2010, 50 percent of the growth in our gross domestic product came from exports," Sanchez says.

He credits Obama for being the first president to appoint an export "cabinet" and holding it "responsible for moving the dial on exports." He cites free trade agreements with Colombia, Panama and Korea as major accomplishments.

Sanchez's agency brought 13,000 foreign buyers to the United States and led trade missions where 400 companies visited 31 countries.

He says Americans should not unduly fear foreign investors, pointing out foreign companies support 4 million jobs in the United States. This year Toyota will export 100,000 vehicles built in the United States to other countries, including South Korea.

So American manufacturers are far more competitive than many think.

Trade critics point to the manufacturing operations that have fled the nation for cheap labor, but they overlook the many trade opportunities around the globe that hold a huge potential for profit. Sanchez points to Indonesia, which has 250 million people, yet "we hardly sell anything to them."

Tampa is well situated to benefit from more international shipping. Fortunately, a commitment to trade is shared by most of the GOP presidential candidates.

As Buckhorn says, "Tampa already has all the attributes of a strong international trade partner: a deep water port, major international airport and easy access to two interstates."

If the federal-local partnership helps local companies seize significantly more export opportunities, then Sanchez will have performed a notable service for his administration and his hometown.