6 tivities, and financing issues;
7 "(B) providing assessments of assistance
8 by foreign governments that is provided to pro-
9 ducers of environmental technologies, goods,
10 and services in such countries in order to en-
1 1 hance exports to the country to which the spe-
12 cialist is assigned, the effectiveness of such as-
13 sistance on the competitiveness of United
14 States products, and whether comparable Unit-
15 ed States assistance exists;
16 "(C) training Foreign Commercial Service
17 Officers in the country to which the specialist
18 is assigned, other countries in the region, and
19 United States and Foreign Commercial Service
20 offices in the United States, in environmental
21 technologies and the international environ-
22 mental market;
23 "(D) providing assistance in identifying
24 potential customers and market opportunities in
25 the country to which the specialist is assigned;
80
1 "(E) providing assistance in obtaining nec-
2 essary business services in the country to which
3 the specialist is assigned;
4 "(F) providing information on environ-
5 mental standards and regulations in the coun-
6 try to which the specialist is assigned; and
7 "(G) providing information on all United
8 States Government programs that could assist
9 the promotion, financing, and sale of United
10 States environmental technologies, goods, and
1 1 services in the country to which the specialist is
1 2 assigned.
13 "(g) Environmental Training in One-Stop
14 SHOPS. — In addition to the training provided under sub-
15 section (f)(2)(C), the Secretary of Commerce shall estab-
16 lish a mechanism to train —
17 "(1) Commercial Service Officers assigned to
18 the one-stop shops provided for in section
19 2301(b)(8), and
20 "(2) Commercial Service Officers assigned to
21 district offices in districts having large numbers of
22 environmental businesses,
23 in environmental technologies and in the international en-
24 vironmental marketplace, and ensure that such officers re-
25 ceive appropriate training under such mechanism. Such
81
1 training may be provided by officers or employees of the
2 Department of Commerce, and other United States Gov-
3 ernment departments and agencies, with appropriate ex-
4 pertise in environmental technologies and the international
5 environmental workplace, and by appropriate representa-
6 tives of the private sector.
7 "(h) International Regional Environmental
8 Initiatives. —
9 "(1) Establishment of initiatives. — The
10 TPCC shall establish international regional environ-
1 1 mental initiatives the purpose of which shall be to
1 2 coordinate the activities of Federal departments and
13 agencies with the activities of State and local gov-
14 ernmental institutions and the private sector to build
15 environmental partnerships between the United
16 States and the geographic region outside the United
17 States for which such initiative is established. Such
18 partnerships shall enhance environmental protection
19 and promote sustainable development by using tech-
20 nical expertise and financial resources of the United
21 States in the region and by expanding United States
22 exports of environmental technologies, goods, and
23 services to that region.
82
1 "(2) Activities. — In earning out each inter-
2 national regional environmental initiative, the TPCC
3 shall—
4 "(A) support the development of sound en-
5 vironmental policies and practices in countries
6 in the geographic region for which the initiative
is established, including the development of en-
8 vironmentally sound regulatory regimes and en-
9 forcement mechanisms, through the provision of
10 foreign assistance;
11 "(B) identify and disseminate to United
12 States environmental businesses information re-
13 garding specific environmental business oppor-
14 tunities in that geographic region;
15 "(C) coordinate existing Federal efforts to
16 promote environmental exports to that geo-
17 graphic region, and ensure that such efforts are
18 fully coordinated with environmental export
19 promotion efforts undertaken by the States and
20 the private sector;
21 "(D) increase assistance provided by the
Federal Government to promote exports from
23 the United States of environmental teeh-
24 nologies, goods, and services to that geographic
region, such as trade missions, reverse trade
83
1 missions, trade fairs, and programs in the Unit-
2 ed States to train foreign nationals in United
3 States environmental technologies; and
4 "(E) increase high-level advocacy by Unit-
5 ed States Government officials for United
6 States environmental businesses seeking market
7 opportunities in that geographic region.
8 "(i) Environmental Technologies Project Ad-
9 VOCACY Calendar. — The Working Group shall maintain
10 a calendar, updated at the end of each calendar quarter,
11 of significant opportunities for United States environ-
12 mental businesses in foreign markets and trade promotion
13 events, which shall be made available to the public. Such
14 calendar shall —
15 "(1) identify the 50 to 100 environmental infra-
16 structure and procurement projects in foreign mar-
17 kets that have the greatest potential in the calendar
18 quarter for United States exports of environmental
19 technologies, goods, and sendees; and
20 "(2) include trade promotion events, such as
21 trade missions and trade fairs, in the environmental
22 sector.
23 "(j) Definition. — For purposes of this section, the
24 term 'environmental business' means a business that pro-
25 duces environmental technologies, goods, or services.".
84
i TITLE V- INTERNATIONAL PRO-
2 TECTION OF INTELLECTUAL
3 PROPERTY
4 SEC. 501. ESTABLISHMENT OF PROGRAM.
5 (a) In General. — In carrying out part I of the For-
6 eign Assistance Act of 1961 and other relevant foreign as-
7 sistanee laws, the President, acting through the Adminis-
8 trator of the United States Agency for International De-
9 velopment, shall establish a program of training and other
10 technical assistance to assist foreign countries in —
11 (1) developing and strengthening laws and reg-
12 ulations to protect intellectual property; and
13 (2) developing the infrastructure necessary to
14 implement and enforce such laws and regulations.
15 (b) Participation op Other Agencies. — The Ad-
16 ministrator of the United States Agency for International
1 7 Development —
18 (1) shall utilize the expertise of the Patent and
19 Trademark Office and other agencies of the United
20 States Government in designing and implementing
21 the program of assistance provided for in this sec-
22 tion;
23 (2) shall coordinate assistance under this sec-
24 tion with efforts of other agencies of the United
25 States Government to increase international protec-
85
1 tion of intellectual property, including implementa-
2 tion of international agreements containing high lev-
3 els of protection of intellectual property; and
4 (3) shall consult with the heads of such other
5 agencies in deter mining which foreign countries will
6 receive assistance under this section.
86
Amendment To Subcommittee Print
Offered By Mr. Gejdenson
Page 56, after line 2, insert the following:
1 (2) by inserting "to the Trade and Development
2 Agency" after "to be appropriated";
Page 56, line 3, strike "(2)" and insert "(3)".
Page 56, line 6, strike "(3)" and insert'"(4)".
87
TESTIMONY
OF
LAURI J. Fl TZ-FEG ADO
ASSISTANT SECRETARY AND DIRECTOR GENERAL
U.S. AND FOREIGN COMMERCIAL SERVICE
BEFORE THE
HOUSE SUBCOMMITTEE ON ECONOMIC POLICY, TRADE AND ENVIRONMENT
COMMITTEE ON FOREIGN AFFAIRS
U.S. HOUSE OF REPRESENTATIVES
WASHINGTON, D.C.
AUGUST 10, 1994
I am pleased to have this opportunity to appear before the House Subcommittee on
Economic Policy, Trade and Environment to discuss the major programs and initiatives of the
U.S. and Foreign Commercial Service and in particular, an overview of the domestic
reorganization plan proposed to Congress on July 27, 1994.
I long have looked forward to leading the U.S. and Foreign Commercial Service at this
important time when the Clinton Administration is pursuing new vehicles to promote economic
growth, expand U.S. exports abroad and develop new employment opportunities for our citizens.
The U.S. and Foreign Commercial Service, since its inception in 1980, has served as a catalyst in
all three of these areas.
Today, the U.S. and Foreign Commercial Service is the face seen most directly by the U.S.
business community at home and abroad. The organization is critical to the development and
implementation of the United States' export promotion program, set out in "Toward a National
Export Strategy," the first annual report submitted to Congress by the Trade Promotion
Coordinating Committee, chaired by Secretary Brown, on September 30, 1993.
I am challenged by this historic opportunity and look forward to working with you, Mr.
Chairman, and other members of this Committee, to help bring constructive change and increased
economic stability in the United States, and to pursue our commercial policy objectives abroad.
I take this opportunity, Mr. Chairman, to share with you my vision for the U.S. and
Foreign Commercial Service and a summary of our initiatives and programs The US and
Foreign Commercial Service should be a single, global-minded export promotion workforce
equipped with the skills and combined domestic and overseas experience to support and assist
more effectively U.S. businesses throughout the world. I also will strive to ensure the
organization is strengthened by being more representative of the diversity of die American
population.
Building upon the strategic review of the U.S. and Foreign Commercial Service completed
in early 1992 and the solid framework established by my predecessor, we hope to continue the
client focus of this organization At the same time, we arc shifting from an adrninistratively-driven
structure to one driven by program priorities.
88
The Under Secretary of the International Trade Administration (IT A), Jeffrey E Garten,
has outlined priorities for IT A including export promotion activities in the ten Big Emerging
Markets, key sectors in these markets, implementation of the North American Free Trade
Agreement and once enacted, the Uruguay Round, and enhanced contact with the U.S. business
community. The U.S. and Foreign Commercial Service is playing an important role in carrying
out some of these programs, and in particular, is shifting people and resources from some of cur
more traditional markets to the ten Big Emerging Markets In some of these markets, we are
implementing the concept you outlined in Title IV of the "Jobs Through Experts Act" by
establishing Commercial Centers in Brazil, Indonesia and China.
Our focus on these Big Emerging Markets has not and will not detract from other priority
markets and programs Clearly, Japan and Western Europe continue in importance along with
our many programs and initiative in the Newly Independent States (NIS).
The U S and Foreign Commercial Service is leading several regional and Big Emerging
Market-specific initiatives, including Export Mexico and Destination ASEAN Export Mexico is
a program initiated last September to help U.S. firms learn more about export opportunitities in
Mexico and obtain appropriate financing for their exports Destination ASEAN is an export
promotion program initiated last November to inform US. businesses about the myriad of
business opportunitmes in the ASEAN region. In addition, the U.S. and Foreign Commercial
Service, in cooperation with other unhs in JTA, leads task forces on Indonesia and South Africa,
two of the Big Emerging Markets.
As a result of the National Export Strategy, the US and Foreign Commercial Service was
tasked with a number of responsibilities which we are implementing aggressively. These include:
1) the establishment of "one-stop-shops" and improved trade finance assistance to export-ready
firms, which I will describe in detail later in this testimony, 2) privatization of trade events, 3) the
establishment of an Office of Multilateral Development Bank Operations which is responsible for
assisting US. firms with their efforts to compete for contracts abroad, 4) developing Country
Commercial Guides and Strategic Commercial Plans for our overseas posts; and 5) establishing
greater career development opportunities for Foreign Service Nationals, who form the backbone
of our overseas operations. We also have pursued and executed enhanced training programs for
our commercial officers and foreign service nationals in order to maximize their ability to serve
the American exporting community
We have worked aggressively to complete the implementation of the Commercial
Information Management System (CIMS) With the exception of five posts in the NIS, all posts
are equipped with CIMS We hope to implement CIMS at the NIS posts fiscal year 1995. In
fiscal year 1994, we reached a long term objective of providing a workstation to each professional
staff, so that standing in line to use a computer no longer negatively impacts our productivity All
but two headquarters offices received upgraded computer equipment and office automation tools.
The remaining offices will be installed before the end of fiscal year 1994
89
The U.S. and Foreign Commercial Service has spearheaded ths National Minority Export
Program, in partnership with Commerce'i Minority Business Development Agency. We have
developed this program to increase the number of minority firms involved in international
commerce by targeting minority companies which are "ready to export."
The U.S. and Foreign Commercial Service is implementing a reinvention along the lines of
Vice President Gore's report on the National Performance Review entitled, "Creating a
Government that Works Better and Costs Less" which was issued last September. One example
is the revaluation of the management structure, as well as the products and delivery systems, of
the Office of Export Promotion Services. Our goal is to make the products and services offered
by the Office of Export Promotion Services more client-driven and motivated by program
priorities We hope to complete our assessment of the Office of Export Promotion Services by
September I, 1994.
Another example is the reengineering of the domestic field. As you are aware, Mr
Chairman, one of the sixty recommendations of the Trade Promotion Coordinating Committee
outlined in the National Export Strategy was for the Department of Commerce, the Export-
Import Bank of die United States and the Small Business Administration to work together to
form "one-stop-shops." These "shops" would provide all of the export needs of America's small-
and medium-sized businesses. This TPCC requirement presented the U.S. and Foreign
Commercial Service with an opportunity to reassess the domestic field structure in the context of
the goals set by the Administration, the business community, and focus on trade finance
counseling through the establishment of these cne-stop-shops, now known as Export Assistance
Centers (EACs). Working with our cofleagues at the Export Import Bank, the Small Business
Administration, the Agency for International Development (at the Long Beach site only) and our
state and private sector partners, we fulfilled a TPCC recommendation by opening four "pilot"
EACs on January 31, 1994, in Baltimore, Maryland; Chicago, Illinois; Miami, Florida and Long
Beach, California.
The creation of these four pilot EACs provided for the co-location of federal export
promotion resources, the elimination of inefficient and overlapping services, more customer-
oriented services and improved trade finance assistance. Moreover, work with export promotion
partners in the private and public sectors has further increased the effectiveness of the federal
government's limited resources
The key to the success of the four pilot EACs was interagency cooperation. Under the
leadership of the U.S. and Foreign Commercial Service, interagency working groups were
responsible for every facet of the project. At one level, interagency teams developed the strategy
for implementing the four pilot centers. These teams created the cooperative agreements that
would allow the centers to function efficiently." These included agreements on each agency's
responsibilities, interagency fiscal plans, and the management structure for the sites. On another
level staff from each agency worked together to guarantee the operations success of the sites.
This effort included coordinating different computer systems and personnel procedures, as well as
BOSTON PUBLIC LIBRARY
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creating the physical space for the sites. The working group members began to put aside their
institutional differences and to develop into a real interagency team. This spirit would later
become a key to the success of the pilot sites.
Following the opening of the four pilot sites this January, we began to design a new
domestic field network. We undertook s fundamental reengineering of our entire field network to
complement and extend the services of the interagency EACs. We found that new trade patterns
in many locations made it necessary for us to shift resources closer to existing concentrations of
U.S exporters. Historically, we have used state borders as demarcation iines for the delivery of
federal export promotion services. Our new approach will provide services within natural trading
areas aaoss the country.
We designed a "hub-and-spoke* network of regional and district EACs to better serve the
changing needs of our clients. The new district EACs, or "spokes," will place more of our trade
specialists in closer proximity to the small and medium-sized exporters. Through the use of
emerging communications technology, we will connect these offices to the regional EACs,
referred to as "hubs," and the public and private partners to provide the integrated service
embodied in the four pilot centers We will also provide our trade specialists with mobile
communications technology, such as cellular phones and laptop computers with portable fax
modems. This equipment will allow our trade specialists to counsel clients outside of the office,
thus serving a larger pool of customers.
On July 27, 1994, we proposed to Congress new shes for both Regional and District
Export Assistance Centers. In selecting these shes, wc used both quantitative and qualitative
criteria, as was used to select the four pilot sites. The quantitative criteria, based on Department
of Commerce census data, reflected the export potential of business communities at the three-
digit rip code (STC code) level. We examined several quantitative criteria to determine this
potential, including the volume of exports. We took into consideration the fact that the census
data did not indicate the origin of these exports, so we also included the number of manufacturing
and service establishments. This served to balance the data so that h did not unduly favor port
dries The services industry, one of the fastest growing sectors in our country, was for the first
time factored into our allocation model which determines how we distribute personnel around the
country.
To allow for cost and service efficiencies, we combined this information with qualititive
criteria such as the export potential of a certain community, the existence of trade infrastructure
facilities, such as ports, and the opportunity to work effectively with state, local and private
partners. For the Regional Export Assistance Centers, we also looked at the presence of
Commerce, SBA and Ex-Im Bank resources in the region.
The proposed new domestic network is based on a simple but crucial goal, to provide
US businesses with the information, counseling and financing assistance needed to be effective
competitors abroad. The present system is based on outdated analysis and outdated assumptions
91
We arc very excited about the prospects of this new network for serving our business
customers more effectivdy Less than a year ago, the Trade Promotion Coordinating Committee
recommended a strengthened export promotion system. This proposed network seeks to deliver
on that promise by meeting the ever changing needs of the U.S. business community.
Thank you, Mr. Chairman. I would be pleased to answer any questions you might have.
85-714 (96)
ISBN 0-16-046683-0
9 780160M66830
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