[Congressional Record (Bound Edition), Volume 146 (2000), Part 12]
[Extensions of Remarks]
[Pages 17565-17566]
[From the U.S. Government Publishing Office, www.gpo.gov]



             SMALL BUSINESS EXPORT ENHANCEMENT ACT OF 2000

                                 ______
                                 

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                       Monday, September 11, 2000

  Mr. MANZULLO. Mr. Speaker, last year, U.S. Government statistics 
revealed the largest U.S. trade deficit figure ever, reaching $271 
billion, a 65-percent increase over last year. This year's monthly 
trade numbers reveal that the United States will experience an even 
higher trade deficit than last year. What steps can be taken to reverse 
this trend?
  An overlooked issue in the trade deficit debate is the role that 
small business exporters play in our economy. According to the Commerce 
Department, between 1987 and 1997, the number of small business 
exporters tripled, going from 66,000 to 202,000. Small businesses now 
account for 31 percent of total merchandise export sales spread 
throughout every industrial classification. What is more surprising is 
that the fastest growth among small business exporters has been with 
companies employing fewer than 20 employees.

[[Page 17566]]

These very small businesses represented 65 percent of all exporting 
companies in 1997.
  Despite these encouraging statistics, there is still more work that 
needs to be done. Even though the number of small business exporters 
tripled, they form less than one percent of all small businesses in the 
United States. Even among these cutting-edge firms, nearly two-thirds 
of small business exporters sold to just one foreign market in 1997. In 
fact, 76 percent of small business exporters sold less than $250,000 
worth of goods abroad. In other words, these are ``casual'' exporters. 
The key is to encourage more small businesses to enter the trade arena 
and then to prod ``casual'' small business exporters into becoming more 
active. If we were able to move in this direction, it could boost our 
exports by several billion dollars.
  With the growth of the Internet economy, I am optimistic that we can 
move in this direction. However, we need to insure that all our 
government agencies are up to the challenge so they can help increase 
exports from the small business community.
  While most of the trade focus in the Federal Government for small 
business is on export promotion, the office of the U.S. Trade 
Representative (USTR) can continue to play a vital role in formulating 
trade policy beneficial to small business. I saw this during the 
hearing my Small Business Exports Subcommittee held last May examining 
how Permanent Normal Trade Relations (PNTR) would help small business 
exporters. I heard first-hand from small business exporters how 
different aspects of the United States-China World Trade Organization 
(WTO) Accession Agreement, which was negotiated by USTR, would 
specifically benefit their company's prospects for growth.
  The next ``round'' of global trade talks could even have more 
positive benefits for small business exporters, primarily in the areas 
of trade facilitation. Topics of discussion under this umbrella are 
streamlining trade dispute resolution procedures; reforming the 
documentation and filing procedures for patent and trademark 
protection; opening the public procurement process by foreign 
governments to small businesses; enhancing transparency in 
international tax, finance, customs procedures, and trade rules; and 
exploring means to internationalize the recognition of technical 
certification of professionals. How these issues get resolved will be 
of key interest to small business exporters.
  In addition, this Assistant USTR for small business can play an 
outreach and advocacy role throughout the United States to solicit 
input from the small business community. Many small business exporters 
find our government bureaucracy very mystifying and complicated. Many 
times, small business exporters do not know who to ask a trade policy 
question. They get bounced or referred to one person after another. 
Having one person in charge who is empowered to go beyond the 
Washington Beltway to listen to small business may help alleviate this 
problem.
  Mr. Speaker, I urge my colleagues to support the Small Business 
Export Enhancement Act of 2000.

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