On January 27, 2010, during his State of the Union address, President Barak Obama announced that the United States will begin a 5 year project to double American exports and help American small business and agriculture compete in the global marketplace. Known as the National Export Initiative, this project was put into action via Executive Order by the American president on March 11, 2010. As we approach the first anniversary of its launch, I think we should take a look back and see its progress thus far.

What is the NEI exactly?

As we have mentioned, the National Export Initiative is a program that sets a 5-year objective to double American exports and to increase American jobs by 2 million as a direct benefit. The program will focus on farmers and small businesses. In addition to the pursuit of new markets and aggressive trade deals, the program will also enforce existing trade deals, strengthen Asian partnerships (especially with South Korea) as well as create export controls that will ensure that national security is not compromised.

So is it actually working?

According to the US Export Fact Sheet, the NEI is working. For example, US exports rose .8% in November of 2010 compared to the previous month. During the same period, the trade deficit fell by .3%. Overall, the first 11 months of 2010 saw an increase in exports of 16.8% from the same time period in 2009. Exports to Canada also rose 23% during that period and remains the United States’ top export market.

The numbers also indicate that exports across nearly all major industries are increasing, including services, travel, automotive, petroleum products, industrial machinery, electronics and organic chemicals.

So what’s on the horizon?

The Trade Promotion Coordinating Committee has indicated that there are several markets around the world where the US could develop strong trade ties. These markets include Brazil, India, Colombia, Indonesia, Saudi Arabia, South Africa, Turkey and Vietnam. These markets exhibit high growth rates, relatively stable political and business climate and significant potential for export opportunities.

Daniel Royal