Obama's trade policy questioned
President Obama’s goal of doubling U.S. exports within five years was deemed unrealistic, yet worth pursuing, by economists, academics and businessmen who on Wednesday attended Georgia Tech’s 16th annual Global Business Forum.
All agreed, though, that selling more goods overseas is crucial if the U.S. hopes to fully exit the recession.
“The president’s target is unlikely to be reached given what we know about historical experience and the way the world economy is moving,” said Uri Dadush, a former World Bank director of international trade. “Nevertheless, exports will be by far the most important and sustained source of demand for many U.S. businesses in the coming years.”
Dadush was joined by U.S. and state officials, trade attorneys and exporters at UPS headquarters in Sandy Springs for the day-long forum intended to spur small- and medium-sized businesses to look overseas for new markets.
The World Trade Organization projected recently that imports and exports worldwide should expand 9.5 percent in 2010. Last year, global trade contracted 12.2 percent, the steepest drop since World War II.
U.S. companies exported $1.57 trillion in goods and services last year, an 11-percent chunk of the country’s total economic output. Obama has laid out a number of trade-boosting measures in hopes of putting 2 million people to work.
The National Export Initiative seeks, in particular, to boost aid for small- and medium-sized businesses that rely upon the Export-Import Bank for financing. Alice Albright, the bank’s chief operating officer, said on Wednesday that infrastructure projects – ports, roads, airports, utilities – in countries such as Brazil, Turkey, South Africa and Vietnam offer “huge potential” for U.S. exporters.
Albright said her agency is on track to help Obama realize the doubling of exports. Others were less optimistic.
“Many big businesses have figured out exporting. If [Obama] can put in programs to incentivize small businesses too that will be a big help,” said Daniel Brutto, president of UPS International. “But it’s a very ambitious goal.”
Brutto, whose company works in 205 countries, said Washington’s failure to sign free-trade pacts with South Korea and other nations, and the recession-induced protectionism of many countries, imperils a huge rise in international trade.
John McIntyre, director of Georgia Tech’s Center for International Business Education and Research, said the failure of global trade talks further inhibits U.S. exports. McIntyre added that “a devastating devaluation of the U.S. dollar, which most of us are unwilling to consider,” might also be needed to meet Obama’s goals.
