AAEI Issues "The Innovation Economy for America" Policy Paper

The American Association of Exporters and Importers (AAEI) has isssued a policy paper entitled “The Innovation Economy for America.” The paper, which was sent to all members of Congress last week, contains a series of ideas that, if adopted, would according to AAEI "greatly increase the likelihood that the next great company with innovative technology and products will be created in the United States and thrive in the global marketplace."

"Our leaders need to better understand what innovation really is," said AAEI President and CEO Marianne Rowden, who authored the document. "Innovation can take many forms now, from new products to new processes. If Congress can improve the business environment for our cutting-edge innovators, then it will have tilled the soil from which new ideas can propel the future of our economy."

The document describes the following four policy areas that will foster innovative thinking and invention:

1. Creating an Environment that is Conducive to and Protects Innovation

2. Implementing These Small and Medium Size Business Enterprises Initiatives and Priorities

• Completing Free Trade Agreements with Colombia, Panama and Korea
• Help Small and Medium Size Business Navigate U.S. Export Controls by providing assistance through the U.S. Small Business Administration and the U.S. Department of Commerce
• Expand Export Financing Opportunities for SMEs

3. Promoting Exports by

• Enacting Duty Drawback Simplification
• Streamlining Export Controls

4. Lower Transaction Costs for Business by

• Passing the Miscellaneous Trade Bill (H.R. 4380)
• Finishing the Automated Commercial Environment (ACE) and International Trade Data System (ITDS)
• Economizing Homeland Security Costs (including C-TPAT, CCSP)
• Harmonizing and Recognizing Authorized Economic Operator Programs
• Promoting International Standards Setting Bodies
• Enacting an Exclusive Forum for Trade-Related Disputes by passing a bill to expand the jurisdiction of hte U.S. Court of International Trade
• Eliminating and Reducing User Fees

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U.S. India High Technology Cooperation Group Meetings to Take Place this Week in DC

The seventh U.S.-India High Technology Cooperation Group (HTCG) will take place this Monday and Tuesday (March 15 and 16) in Washington, DC.

The HCTG was formed in 2002 to provide a forum for discussing U.S.-India high-technology trade issues. The HCTG is co-chaired by the U.S. Department of Commerce's Bureau of Industry and Security (BIS) and the Government of India's Ministry of External Affairs

Neena Shenai, an adjunct scholar at the American Enterprise Institute, and formerly a senior advisor at BIS, has published an article entitled "India, the United States, and High-Tech Trade" that notes that this is the first HCTG under the Obama Administration and describes the three primary issues that will be discussed at the HCTG: export controls, defense trade, and civil nuclear cooperation.

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Import and Export News Briefs

Washington Times reports today on issues holding up confirmation of Undersecretary of Commerce for Industry and Security (BIS).

Compliance with import/export regulations and FCPA among top five corporate compliance challenges in 2010 for technology companies.

Politico reports that the Senate conferees for the pending Iran sanctions legislation have been selected. No word on House conferees yet.

India to press to push for liberalization of U.S. export controls at next week's U.S.-India High Technology Cooperation Group Meeting in Washington, DC.

President Obama issues annual notice advising Congress that the national emergency with respect to Iran will be continued and that comprehensive sanctions against Iran will remain.

Two reports on U.S. citizen Alan Gross who was arrested in Cuba in December 2009 here and here.

In case you missed it, 60 Minutes recently aired a report entitled "Made In The USA" In Iran discussing how U.S. parts and components end up in Iran via third countries.

Washington Post: Obama's ambitious export plan may rekindle free-trade battle.

Compliance Week announces agenda for 5th Annual Conference that will be held in Washington, DC from May 24-26, 2010.

Coalition for Security and Competiveness issues statement welcoming President’s continuing commitment to export control reform.

Census Blog: Make sure your AESDirect company account information is up to date!

Justice Department: Former Haitian Government Official Pleads Guilty to Conspiracy to Commit Money Laundering in Foreign Bribery Scheme

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Secretary Locke Participates in White House Web Chat to Discuss National Export Initiative

Here is the video from today's White House chat session that Commerce Secretary Gary Locke held following the President's speech on the National Export Initiative. Questions were submitted via Twitter (@seclocke), Facebook and email. 

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Text of Executive Order on President's National Export Initiative

NEI Executive Order

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President Announces Details of National Export Initiative at Ex-Im Bank's Annual Conference

In a speech today at the Export-Import Bank of the United States' annual conference in Washington, DC, President Obama provided more details on the National Export Initiative (NEI) and his goal of doubling U.S. exports in the next five years that was announced in his State of the Union Speech in January.

The following is a summary the important points made in today's speech:

• Four aims of NEI are (1) increasing export financing; (2) increasing export advocacy; (3) providing assistance for American businesses to locate, set up shop, and win in new markets; and (4) focusing on making sure American companies have free and fair access to those markets, including enforcing existing trade agreements.

• Signed an Executive Order instructing the federal government to use every available federal resource in support of that mission. That order created an Export Promotion Cabinet, made up of the Secretaries of State, Treasury, Agriculture, Commerce and Labor, along with our U.S. Trade Representative, Small Business Administrator, the Export-Import Bank President, and other senior U.S. officials whose work impacts exports. That cabinet will convene its first meeting in April. 

• Re-launched the President’s Export Council, the principal national advisory committee on international trade. Named Jim McNerney, the President and CEO of Boeing, as its chair; and Ursula Burns, the CEO of Xerox, as vice chair (White House announcement on these appointments here).

• Export promotion efforts will extend throughout the Administration. Secretary Locke is issuing guidance to all senior government officials who have foreign counterparts on how they can best promote our exporters. Secretary Clinton is mobilizing a commercial diplomacy strategy, directing every one of our embassies to create a Senior Visitor Business Liaison who will manage our export advocacy efforts locally.

• Will unleash a battery of comprehensive and coordinated efforts to promote new markets and new opportunities for American exporters. Will bring together the Ex-Im Bank, the SBA, the Departments of Commerce and Agriculture, and the Trade Development Agency to set up one-stop-shops across the country and in the 250 embassies and consulates abroad, to help American businesses gain a foothold in the fastest-growing markets with the most demand. And we’ll provide a comprehensive toolkit of services – from financing to counseling to promotion – to help potential exporters grow and expand.

• Will increase funding for existing promotion efforts, including International Trade Administration at the Department of Commerce, and strengthen the USDA’s ability to connect farmers with new customers overseas.

• Working to reform the U.S. Export Control System for strategic, high-tech industries, which will strengthen our national security. Will concentrate our efforts on enforcing controls on the export of our most critical technologies, making America safer while enhancing the competitiveness of key American industries. Have conducted a broad review of the Export Control System, and Secretary Gates will outline our reform proposal within the next couple weeks.

• Regarding exports, the President announced two specific changes in export control laws that the Administration will work to implement:

1. A new one-time online review process for products containing encryption that is intended to reduce the current 30 to 60 day review process to "30 minutes".
2. Will eliminate unnecessary obstacles for exporting products to companies with dual-national and third-country-national employees by harmonizing the EAR and ITAR standards, making it easier for American and foreign companies to comply with U.S. export control requirements without diminishing national security. 

The video of the speech is below:

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President Announces Two Export Control Reform Initiatives Today (Encryption and Dual-Nationals)

In a speech today on the National Export Initiative made today at the Export-Import Bank of the United States' annual conference in Washington, DC, President Obama announced two specific changes in U.S. export control laws that the Administration plans to implement:

1. A new one-time online review and notification process for products containing encryption algorithms. This new process is intended to reduce the current 30 to 60 day review process to "30 minutes."                                 
2. Will eliminate unnecessary obstacles for exporting products to companies with dual-national and third-country-national employees by harmonizing the EAR and ITAR standards, making it easier for American and foreign companies to comply with U.S. export control requirements without diminishing national security. 

Further details on these reforms will be announced by BIS and DDTC in the near future.

More information on the other aspects of the President's speech today are found in the subsequent post.

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