Good News for US Exporters – Government to Assist with Doubling Exports as Part of the NEI

Many of you have probably heard or read about the National Export Initiative (NEI) that was recently enacted by the Obama Administration.  The NEI comes as good news to US Exporters as the main focus is to create jobs while fostering the growth of US Exports.  The goal is to double US Exports in the next 5 years by focusing on small- to medium-sized enterprises and assisting them with strengthening their export operations.

Through the NEI, the US Government has laid out three strategies that will be used to double exports:

• Streamline the process that companies must go through to get their products to market to a one-time, 30 minute online application instead of the normal 30 to 60 day filing process
• Eliminate obstacles for exporting products to companies with dual national and third country national employees
• Protect aggressively any intellectual property from US companies so that someone else can’t just steal the innovative ideas America has and duplicate them with cheaper inputs and labor

At the ICPA 2010 Conference held last week in Orlando, Florida, Ted Johnson, CFO and Director of Administration to the Under Secretary for International Trade, spoke to the group about the NEI and what it means to US Exporters as well as compliance professionals.  As Mr. Johnson pointed out, while this isn’t the first time a plan like this has been laid out by the government, this initiative is different because it is the first time there is sustained government attention at a cabinet level.

The focus is on matching US Exporters, mainly small- to medium-sized, with prospective buyers in bulging markets, as well as providing an advocacy arm for all US Exporters.  As Mr. Johnson pointed out, roughly 50% of US Exporters only export to 1 market – with the NEI the Government hopes to help those 1 market exporters expand to other markets with ease.  And since he was speaking to a group of compliance professionals, he made sure to note that compliance with all government regulations is still very important and is a must even as we push to double US Exports.

On a side note, Mr. Jonson did warn that exporters must be careful not to get too wrapped up in the NEI and forget about compliance or Export Control Reform.  While not part of the NEI, Export Control Reform is a priority for the White House and is close to being realized.

For more information and resources for exporters, visit the International Trade Administration website.  Here you will find information on export basics, export strategies and export success stories.