[Congressional Record (Bound Edition), Volume 147 (2001), Part 6]
[Extensions of Remarks]
[Page 7768]
[From the U.S. Government Publishing Office, www.gpo.gov]



             SMALL BUSINESS EXPORT ENHANCEMENT ACT OF 2001

                                 ______
                                 

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                         Wednesday, May 9, 2001

  Mr. MANZULLO. Mr. Speaker, as we celebrate National Small Business 
Week, let's not forget the fastest growing, and most exciting segment 
of the small business community--those getting involved in 
international trade. 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. These very small businesses represented 65 percent 
of all exporting companies In 1997.
  In fact, out of the 53 state Small Business Persons of the Year, 22 
percent export goods and services representing 20 percent of sales. 
Additionally, 17 percent of the winners who currently do not export 
anticipate doing so within two years. Countries receiving exports 
include: nations of Great Britain, Canada, Mexico, Australia, Germany, 
China, Switzerland, Japan, Cyprus, Israel, Norway, France, Singapore, 
Russia, Argentina, Kazakhstan, Belgium, Brazil, Chile, Egypt, Greece, 
Indonesia, Italy, Poland, Romania, South Africa, Saudi Arabia, Spain, 
Thailand, Turkey and Venezuela.
  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, more small businesses are 
able to export overseas but sometimes face difficult obstacles in 
completing a sale. We need to insure that all our government agencies 
are up to the challenge so they can continue to 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 United States Trade 
Representative (USTR) can continue to play a vital role in formulating 
trade policy beneficial to small business. With the President 
requesting Trade Promotion Authority to negotiate more trade 
agreements, Including the Free Trade in the Americas Agreement (FTAA), 
small business exporters need to be at the table.
  These trade talks could have positive benefits for small business 
exporters, primarily in the area 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.
  That's why I have introduced legislation to create an Assistant USTR 
for Small Business so that one person is primarily responsible for 
these tasks. In addition, the 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 2001.

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