Issue 16 | March 2 , 2012

U.S. Trade Representative and Commerce Secretary welcome Interagency Trade Enforcement Center
President Barack Obama issued an executive order on Feb. 28 that effectively established the Interagency Trade Enforcement Center (ITEC). The ITEC will investigate trading practices worldwide to ensure that the United States and its trading partners are following the proper laws and regulations. Both U.S. Trade Representative Ron Kirk and U.S. Commerce Secretary John Bryson issued statements expressing that the ITEC would assist American businesses and workers to be most competitive in the international trading arena.

Date set for entry into force of the U.S.-Korea Free Trade Agreement
On Feb. 21, U.S. Trade Representative Ron Kirk announced that the free trade agreement between the United State and Korea would take effect on March 15. “Entry into force of this agreement will open up Korea’s $1 trillion economy for America’s workers, businesses, farmers and ranchers while also strengthening our economic partnership with a key Asia-Pacific ally,” said Kirk.

Germany agrees to support a second bailout for Greece
German MPs voted to back the European Union(EU) and International Monetary Fund’s second bailout for Greece. Germany holds the largest financial obligation out of the members of the EU. This bailout will total 130 billion Euros, equivalent to roughly $173 billion. This bailout was met with much resistance, as debate continues on whether this bailout will be effective in reviving the Greek economy.

Gov. Brown announces plans to open California Trade and Investment Offices in China
On Feb. 17, Gov. Jerry Brown announced plans to open Californian trade and investment offices in China. This announcement was prompted by Chinese Vice President Xi Jinping’s visit to Los Angeles, in which he met with Gov. Brown and U.S. Vice President Joe Biden. This move marks a strategic effort to attract Chinese consumers and investors to engage with Californian businesses.

Ex-Im Bank establishes $100 million revolving credit facility for small business exporters
The Export-Import Bank of the United States unveiled a new product, Global Credit Express (GCE). GCE will allow small businesses exporters to access a revolving line of credit, up to $500,000 for 6 to 12 months. This pilot phase of GCE will allow small business exporters to access the credit they need in order to thrive and compete in the global marketplace.

U.S. small businesses moving manufacturing from China to the United States
Many U.S. small businesses are transferring manufacturing from China back into the United States. As Chinese manufacturing costs rise, American factories have become increasingly appealing. Using domestic manufacturing, many argue that U.S. small businesses are able to cut back the costs and risk. Some companies note that manufacturing their products in the United States still costs more than doing so in China, but say the price is worth it to satisfy the demand for American-made products.