Mr. MANZULLO. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend and to submit extraneous materials for the Record.
Mr. MANZULLO. Mr. Speaker I yield myself such time as I may consume.
Mr. Speaker, this bill has been many years in the making and is the result of several hearings, including one I held as chairman of the House Small Business Committee back in 2006. This is simply a good-government bill that costs nothing.
I recognize that market forces play a predominant role in international trade. However, export promotion programs can play a useful role in helping small and medium-sized enterprises find new markets and customers overseas. Several small companies in northern Illinois expanded their operations and hired new workers after U.S. Commercial Service identified new exporting opportunities.
Also, according to the National District Export Council, every $1 spent on export promotion has resulted in $135 in exports. However, many of our trade-promotion programs are not fully integrated. This has been confirmed in various Government Accountability Office, GAO, and Inspector General reports measuring the effectiveness of the Trade Promotion Coordinating Committee, which is known as the TPCC. Congressional intent behind the legislation this committee passed in 1992 has not been fulfilled.
Our trading partners are well organized and effectively market their businesses overseas. I recall on one of my trips to China some years ago, the CEO of a very large Chinese manufacturing company told me he often sees Europeans and Japanese as trade-promotion officials, but he had yet to see Americans doing the same thing. And he asked me the question: Where are the Americans?
According to the National District Export Council, while the U.S. spends about 21 cents per $1,000 of total exports on trade-promotion programs and services, Japan spends 30 cents, France spends 43 cents, and Great Britain spends 75 cents. With small businesses offering the best prospect to boost export growth, we should make every effort that gets the greatest return for any taxpayer money spent on export promotion.
In 2006 and in 2008, I introduced legislation that would reform the TPCC and move its responsibilities into the executive office of the President. I was pleased in 2010 when the President announced the formation of the Export Cabinet and adopted many of the reform ideas contained in my legislation, such as instituting measurable benchmarks for achieving goals set forth in the annual National Export Strategy report.
However, there is one key reform missing from the President's proposal: having an integrated trade budget. Currently, each trade-promotion agency submits its own budget to the Office of Management and Budget and the President on its own without a separate review as to whether or not each request fits within the overall trade agenda for the U.S. Government.
The TPCC needs budget-review authority in order to be fully effective. In 2010, I was proud to join with our former colleague, Representative Gabby Giffords, in introducing legislation to remedy this problem. While the bill did not pass in the previous Congress, I am proud to join with my good friend, Representative Howard Berman, in continuing Ms. Giffords' legacy and support the Export Promotion Reform Act.
While the President issued a subsequent memorandum last February that would give the Export Cabinet and the TPCC the ability to make recommendations to the Office of Management and Budget for more effective use of trade-promotion funds, this bill is needed to codify and clarify this role to guarantee that the TPCC will be able to influence decisions on the President's budget request prior to its submission to Congress.
Process and good-government reforms oftentimes do not get the attention they deserve. However, this bill recognizes their importance. I urge my colleagues to support this bill because it will ultimately benefit small and medium-sized exporters.
I reserve the balance of my time.
Mr. BERMAN. Mr. Speaker, I rise in strong support of H.R. 4041, and I yield myself such time as I may consume.
Mr. Speaker, the Export Promotion Reform Act is a bipartisan, noncontroversial bill that will help increase the export of American goods and services, and in the process create new, high-quality jobs. I want to thank the gentleman from Illinois (Mr. Manzullo) for working with me on this legislation. He has been one of the strongest voices for export promotion and export control reform in this Chamber, and he's been a great partner to have on this legislation. I also want to thank my
chairman of the Foreign Affairs Committee, Ileana Ros-Lehtinen, and her staff for helping to move this through the legislative process to this point.
H.R. 4041 would implement recommendations by the GAO, the Government Accountability Office, to make more effective use of our export-promotion programs. According to the Congressional Budget Office, the bill doesn't authorize any new programs, nor does it add any new spending or impose any new mandates.
The bill has been endorsed by a number of prominent business organizations, including the U.S. Chamber of Commerce, the National Association of Manufacturers, and the Business Roundtable.
The Export Promotion Reform Act would make sound, practical improvements that would benefit many of the [Page: H3254]
Nation's 293,000 exporting firms, more than 97 percent of which are small and medium-sized businesses, while exercising fiscal prudence on behalf of the American taxpayer.
American firms have renewed opportunities for growth and increased employment through increased sales overseas. However, the competition in world trade is fierce, and our export-promotion programs often don't measure up to those of our competitors. GAO has told us repeatedly that these programs would be more effective with improved coordination. To that end, H.R. 4041 would eliminate duplicative activities and improve service delivery to exporters; require a global plan to identify and target
the best growth markets for U.S. goods and services; and require our ambassadors to develop country-by-country commercial diplomacy plans aimed at increasing U.S. exports, while making the effectiveness of their commercial diplomacy efforts part of their annual performance review.
Mr. Speaker, the U.S. Department of Commerce estimates that every $1 billion of U.S. exports supports approximately 5,800 jobs here at home. With 95 percent of the world's consumers living overseas, expanding U.S. exports in world markets is one of the best ways for American business to grow and create jobs.
I urge all of my colleagues to support this legislation, and I yield back the balance of my time.
CONGRESSIONAL BUDGET OFFICE,
Washington, DC, March 19, 2012.
Hon. Ileana Ros-Lehtinen,
Chairman, Committee on Foreign Affairs, House of Representatives, Washington, DC.
Dear Madam Chairman: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4041, the Export Promotion Reform Act.
If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Sunita D'Monte.
DOUGLAS W. ELMENDORF.
H.R. 4041--Export Promotion Reform Act
H.R. 4041 would require the Secretary of Commerce to assess overseas markets, at least once every five years, to determine which markets present the greatest opportunities to increase United States exports. The Secretary would be required to relocate personnel that promote U.S. trade opportunities based on the outcome of the assessment. The bill also would require Chiefs of Missions in foreign countries to use those assessments in promoting United States exports.
Based on information from the Department of State and the International Trade Administration, the agencies that would administer the bill's provisions, CBO estimates that implementing H.R. 4041 would have discretionary costs of less than $500,000 a year, totaling about $1 million over the 2012 2017 period, assuming the availability of appropriated funds.
Enacting H.R. 4041 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
H.R. 4041 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments.
On January 17, 2012, CBO transmitted a cost estimate for H.R. 2987, the American Export Promotion and Job Creation Act, as introduced on September 21, 2011. The language in that bill is similar to that in H.R. 4041 and the estimated costs for the two bills are identical.
The CBO staff contact for this estimate is Sunita D'Monte. The estimate was approved by Theresa Gullo, Deputy Assistant Director for Budget Analysis.
CHAMBER OF COMMERCE OF THE
UNITED STATES OF AMERICA,
Washington, DC., April 18, 2012.
Hon. Howard Berman,
House of Representatives,
Hon. Donald Manzullo,
House of Representatives,
Dear Representatives Berman and Manzullo: The U.S. Chamber of Commerce, the world's largest business federation, representing the interests of more than three million businesses and organizations of every size, sector, and region, supports H.R. 4041, the ``Export Promotion Reform Act,'' which would boost exports of goods and services by improving the coordination of U.S. export promotion programs.
International trade plays a central role in creating American jobs and boosting economic growth at home. More than 38 million American jobs already depend on trade, and more than 97% of the 275,000 U.S. companies that export are small and medium-sized enterprises (SMEs). However, this figure represents just one of every 100 U.S. SMEs, underscoring how difficult it is for smaller firms to enter export markets. At virtually no cost, this bill would ensure that the federal government's limited export
promotion resources are used efficiently to offer these smaller companies the help they need to break into the international marketplace.
The Government Accountability Office (GAO) has determined that the 17 federal agencies with export promotion programs could be made more effective through better coordination, elimination of duplicative activities, and better allocation of resources. In particular, GAO found that strengthening the interagency Trade Promotion Coordinating Committee would improve the effectiveness of U.S. export promotion programs. GAO also found that effective export promotion programs can provide significant
benefits to SMEs in the competitive global economy.
H.R. 4041 would put many of the GAO recommendations into effect. It would require the Secretary of Commerce to assess overseas markets at least once every five years to determine which markets present the greatest opportunities for U.S. exporters. The bill also would require U.S. ambassadors abroad to use those assessments as U.S. embassies promote U.S. exports of goods and services.
The Chamber supports H.R. 4041, which would help more U.S. companies tap export markets and create American jobs, and applauds you for your leadership on this important issue. The Chamber looks forward to working with you on this important legislation.
R. BRUCE JOSTEN.
NATIONAL ASSOCIATION OF
Washington, DC., April 10, 2012.
Hon. HOWARD BERMAN,
House of Representatives, Washington, DC.
Hon. DONALD MANZULLO
House of Representatives, Washington, DC.
DEAR REPRESENTATIVES BERMAN AND MANZULLO: The National Association of Manufacturers (NAM) very much appreciates the opportunity to support legislation that will streamline U.S. export promotion activities. We believe that The Export Promotion Reform Act (H.R. 4041) will help increase the export of domestically made goods.
The NAM is the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. The ability of U.S. companies to export has always been a critical issue for the NAM, and exports are increasingly important to the U.S. economy and to the success of American manufacturing.
Foreign markets, particularly in emerging economies, are growing faster than the mature U.S. domestic market. That means in order to obtain the jobs growth we all want, manufacturers need to turn increasingly to export markets. Unfortunately, the United States is falling behind. We are still the world's largest manufacturer, but we lack the export orientation of our major competitors and have been losing share in world markets. In fact, the United States exports less than half as much of its
manufacturing output as the global average. And in comparing the United States with the 15 major manufacturing economies, we rank 13th in the proportion of our manufacturing output that is exported.
Increasing U.S. exports contributes directly to jobs for American workers. Global trade flows are recovering, and there are increasing opportunities for sales overseas. However, the more than 90 percent of exporters that are small or medium-sized firms need more effective export promotion assistance in order to compete with the support that foreign firms received from their governments. H.R. 4041 can help here.
According to the GAO, 17 federal agencies have export promotion programs. With improved coordination, these agencies can eliminate duplicative activities and utilize their resources more efficiently. The NAM believes that strengthening the interagency Trade Promotion Coordinating Committee (TPCC), led by the Secretary of Commerce, will improve federal export promotion programs and help the global competitiveness of manufacturers in the United States.
H.R. 4041 will strengthen the TPCC by requiring it to assess current export promotion programs, outline necessary improvement, and coordinate the implementation of export promotion activities by other agencies. The Export Promotion Reform Act will also improve export promotion and provide much-needed practical help to manufacturers and manufacturing workers by providing for the redeployment of U.S. Commercial Service resources. This will help exporters find more customers and better understand
foreign Customs rules and regulations.
The NAM hopes to see The Export Promotion Reform Act move quickly toward becoming law, and want to express our strong support for its passage as we all work toward the goal of doubling U.S. exports.
Frank Vargo. [Page: H3255]
Washington, DC, April 17, 2012.
Hon. Howard Berman,
House of Representatives, Rayburn House Office Building, Washington, DC.
Hon. Donald Manzullo,
House of Representatives, Rayburn House Office Building, Washington, DC.
DEAR REPRESENTATIVES BERMAN AND MANZULLO: Business Roundtable supports your bipartisan legislation, H.R. 4041--the Export Promotion Reform Act, which will help expand U.S. exports and thereby support U.S. economic growth and jobs.
In its recent report, Taking Action for America: A CEO Plan for Jobs and Economic Growth, Business Roundtable put forward a comprehensive plan to revitalize U.S. economic growth and job creation. The plan recognizes that expanding international trade and investment is one of several critical areas for action. The facts demonstrate clearly that international trade is an important engine for U.S. economic growth and job creation:
Over the last two decades, 24 million new trade-related jobs for American workers were created.
In 2008, more than 38 million jobs in America--more than one in five--depended on international trade--exports and imports.
In 2009, more than 275,000 U.S. companies exported merchandise to customers abroad.
Exports support higher-paying jobs. Positions in the manufacturing sector linked to the export of goods pay on average 18 percent more than other jobs.
H.R. 4041 will put in place policies and reforms needed to make U.S. export promotion programs more efficient and effective and help U.S. exporters compete for sales around the world against our foreign competitors. I understand that H.R. 4041 will accomplish these important objectives at existing funding levels.
If given the tools, American companies and exporters can increase their share of world trade. H.R. 4041 will give them more of the tools they need to expand U.S. exports.
COALITION FOR EMPLOYMENT
THROUGH EXPORTS, INC.,
Washington, DC, April 2, 2012.
Hon. John A. Boehner,
Speaker of the House of Representatives,
Office of the Speaker,
DEAR SPEAKER BOEHNER: On behalf of its members, the Coalition for Employment through Exports (CEE) writes in support of H.R. 4041, The Export Promotion Reform Act. CEE is comprised of the largest exporters and manufacturers in the country and thus understands the importance of exports to the creation of American jobs and improving the economy. However, with countries all over the world focused on exporting their way out of the economic downturn, it is essential that U.S. companies--large
and small--have the necessary tools and support to compete in the global marketplace. H.R. 4041 helps sharpen the focus of U.S. export promotion efforts with special emphasis on small and medium size firms; CEE hopes the House will take up action on this Bill over the next few weeks.
We are especially pleased with the provisions focused on finding export opportunities, granting the Trade Promotion Coordinating Committee (TPCC) more authority, and seeking the advice of SME exporters. The last item is especially critical as it recognizes the unique needs small businesses have when exporting. It is very difficult for small companies to locate customers, verify the stability of the foreign company and line up financing; this bill will enable export promotion efforts to better
target the needs of these exporters. If enacted, CEE believes H.R. 4041 would help mitigate the complications faced by the job-creating American small business.
CEE urges the Congress to act quickly on this critical bill.
John Hardy, Jr.