The 2008 National Export Strategy Report highlights multiple trends contributing to strong U.S. exports, including strong foreign demand, e-commerce, and continued U.S. competitiveness.

State of Trade

U.S. exporters are hitting their stride in the global economy, with record exports making an increasingly important contribution to overall U.S. economic growth. The prospects for U.S. exports are better than any time in recent memory across sectors and for U.S. companies large and small, due to the rapid growth of foreign markets and favorable terms of trade.

The services sector continues to make an outsized contribution to growth in exports and improvements in the trade balance. And for smaller firms in particular, e-commerce continues to shrink distances and transaction costs between buyers and sellers.

American firms are maintaining their innovative and competitive edge in the world while developing their own new culture of exporting. In the process, they are discovering that in addition to their local Main Street USA, they now have access to the new global Main Street.

OVERVIEW OF U.S. TRADE
Record Exports: In 2007, U.S. goods and services exports grew by 13 percent, reaching an all-time high of $1.646 trillion, including record goods exports of $1.148 trillion (including record agricultural exports) and record services exports of $497 billion.1 U.S. exports grew solidly in all sectors—manufacturing, services, and agriculture (Chart 1).

In 2007, goods exports increased by $126 billion over 2006, with records in agricultural domestic exports ($89.9 billion); industrial supplies and materials ($316.3 billion); capital goods ($447.4 billion); consumer goods ($146.1 billion); and automotive vehicles, parts, and engines ($121.0 billion). U.S. exports to our major trading partners also set records: Canada ($248.9 billion); Mexico ($136.1 billion); the European Union ($247.2 billion); China ($65.2 billion); and South/Central America and the Caribbean ($107.5 billion). The United States also set records in exports to other key emerging markets, including a 28 percent increase in exports to Brazil (to $24.6 billion); a 57 percent increase in exports to Russia (to $7.4 billion); and a 75 percent increase in exports to India (to $17.6 billion). ...

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CONTENTS
Letter from the Secretary of Commerce iii
State of Trade 1
Broadening and Deepening the Base of Exporters 13
Free Trade Agreements 37
Priority Markets 51
Next Generation Markets 67

The Trade Promotion Coordinating Committee (TPCC) is an interagency group chaired by the U.S. Secretary of Commerce. The Export Enhancement Act of 1992 established the TPCC to provide a unifying framework to coordinate the export promotion and financing activities of the U.S. Government, as well as to develop a comprehensive plan for implementing strategic priorities.

For more information about the TPCC, contact:
Trade Promotion Coordinating Committee
Room 2112, U.S. Department of Commerce
Washington, DC 20230
202-482-5455

LETTER FROM THE SECRETARY
Dear Mr. President and Madam Speaker:
On behalf of the Administration and as Chairman of the Trade Promotion Coordinating Committee (TPCC), it is my pleasure to present the 2008 National Export Strategy.

The United States remains the world’s largest exporter, and U.S. exports are growing sharply. In 2007, U.S. goods and services exports grew by 13 percent, to a record $1.6 trillion. In 2007, exports accounted for 41 percent of growth in the U.S. economy. In the first quarter of 2008, exports comprised 12.6 percent of the U.S. gross domestic product, compared to 9.5 percent five years ago. Foreign demand for U.S. goods is bolstering the balance sheets of major U.S. corporations. Overseas sales are keeping the factory floors of small businesses humming. The influx of foreign tourists is providing revenue to local communities.

Exporting is part of our daily lives. Exports benefit American families, communities, and towns, and help to make our economy the strongest and most competitive in the world.

As outlined in the chapter State of Trade, we are experiencing a historic set of favorable conditions for U.S. exports. Rising foreign incomes represent strong foreign demand. Changes in exchange rates make American goods more price-competitive in many markets. And foreign tariffs and communications costs have fallen.

Thousands of U.S. companies are not aware of export opportunities or the programs available to help them. The challenge is reaching these companies amidst a U.S. business community of 27 million firms. The centerpiece of our National Export Strategy, as presented in the chapter Broadening and Deepening the Base of Exporters, is to engage in partnerships with other service providers to reach more potential exporters. We will strengthen partnerships with American cities and States, with large service corporations that have millions of daily contacts with clients, and with trade associations and other nonprofit organizations that have unique access to potential exporters.

As a Nation, we also must recognize that our economic well-being is rooted in our openness to the rest of the world. Openness plays to the strengths of American industry—its innovation and productivity. It improves consumer choice and living standards at home, while giving our firms the opportunity to compete for business abroad. The United States has led the world in creating a more open trading environment by breaking down foreign barriers to trade and continues to work toward a successful conclusion of the Doha Development Round of World Trade Organization (WTO) multilateral trade negotiations.

As highlighted in the chapter Free Trade Agreements, we have expanded opportunity for U.S. exporters through bilateral and regional Free Trade Agreements (FTAs). In 2007, exports to our 14 FTA trade partner countries accounted for one-quarter of the growth since 2006 of U.S. exports of goods. TPCC agencies will continue to promote the benefits of these agreements and create opportunities for U.S. companies to enter these markets.

Millions of people have been lifted out of poverty through participation in the global trading system, at the same time creating vast new markets for American exports. In the chapter Priority Markets, we look at China, India, Brazil, and Russia. In 2007, U.S. exports set impressive records in all four countries. The National Export Strategy targets these economies based on their commercial potential as well as the difficulties U.S. companies experience in entering these markets.

In the chapter Next Generation Markets, we focus on the Middle East and Africa, two regions that continue to experience rapid economic growth. In these two regions, we see enormous spending on infrastructure projects, as well as new import demand driven by reforms and expanded credit. In sub-Saharan Africa, many markets are benefiting from global demand for commodities and bearing the fruits of years of structural reforms. Together, the TPCC agencies are focusing on helping U.S. exporters navigate these markets while mitigating their risks.

I commend the other TPCC agencies in their efforts with the Department of Commerce to ensure that the U.S. Government has the right programs in the right markets to help U.S. companies export. We will broaden the base of exporters through strategic partnerships.

We will introduce more companies to FTA markets. We will ensure that exporters large and small have the tools to conquer the uncertainties of doing business in priority emerging markets. And we will advance our commercial relationships with the next generation of emerging markets.

America has maintained its innovative edge in the world and is creating a culture of exporting.
Now is the time to build on our success and continue opening new markets, recognizing openness as our strength.

Sincerely,
Carlos M. Gutierrez
Secretary of Commerce and
Chairman of the Trade Promotion
Coordinating Committee

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