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TRADE NEWS

GrassRoots Trade News


is produced by the
U.S. Chamber of
Commerce, TradeRoots,
1615 H Street, N.W.,
Washington, D.C. 20062.

www.traderoots.org 2006 | Volume XVII Access 2006:


America’s Small
U.S. Chamber Hits Business Summit
the Road With A
ccess 2006: America’s Small
Business Summit was hosted by
the U.S. Chamber in Washington,

Chinese Ambassador DC, May 10–12 at the Grand Hyatt Hotel.


Access 2006 brought more than 500
participants together around common
concerns and opportunities facing small
businesses. The summit energized and
educated small business owners with
he U.S. Chamber’s East Asia and partners, and intellectual property

T
thought-provoking sessions on
TradeRoots staff traveled with protection strategies for U.S. companies leadership, politics, and tools for success.
Chinese Ambassador Zhou looking to invest in the China market. The event also featured industry
Wenzhong to Milwaukee, Wisconsin, and The next grassroots China business icons and thought leaders who are
to Saint Paul, Minnesota, as part of an tour, along with the Chinese Ambassador, models of small business success.
eight-city grassroots tour designed to is scheduled to visit Kansas City, Missouri, Topics and speakers included an
introduce the Chinese marketplace to and Omaha, Nebraska. Later in the year, analysis of the 2006 midterm elections
small and medium-size businesses the tour is scheduled to visit Pittsburgh, with Gwen Ifill, Charlie Cook, and
(SMEs) throughout the United States. Pennsylvania; Rochester, New York; Stuart Rothenberg; a discussion on
The Chamber, with the support of FedEx, Cincinnati, Ohio; and Detroit, Michigan. health care featuring Newt Gingrich; a
AIG WorldSource, and local chambers, For more information, please email small business success story told by
intentionally designed this initiative to Emily Hagel at ehagel@uschamber.com. FedEx’s Frederick W. Smith; and an
reach cities and congressional districts in inside look at Washington politics
states where the benefits of the U.S.- today through the eyes of David
China commercial engagement may not Gregory, Ed Gillespie, and Terry
be readily apparent. McAuliffe.
Program participants included Rep. Numerous breakout sessions
Gwen Moore (D-WI, 4th), Milwaukee covered a wide range of topics
Mayor Tom Barrett, Sen. Norm Coleman including the impact of lawsuit
(R-MN), and Saint Paul Mayor Chris abuse on small business, market

Photo: Ian Wagreich


Coleman. The forums in both cities also opportunities in government and the
included panelists from the American private sector, how to get heard on
Chamber of Commerce-China, the Capitol Hill, and an overview of the
Department of Commerce, and business current state of the economy and its
executives with significant investment Milwaukee Mayor Tom Barrett and Chinese potential for growth. TradeRoots’
experience in China. The panelists Ambassador Zhou Wenzhong, featured
speakers at the China Business 2006 forum
Leslie Schweitzer led a panel
collectively underscored the importance in Milwaukee, pause for a photo after the discussion on how small businesses
of due diligence, finding suitable morning session. can succeed in the global market.

INSIDE THIS ISSUE


Page 2 | U.S.-Korea FTA Talks Page 3 | Regional Office Profile Page 4 | Chamber Briefs/Trade Update
2 | Grassroots Trade News

CORRESPONDENCE
Happy Birthday TradeRoots
Update Your e want to thank the hundreds of whom it impacts.
Member Profile
TradeRoots is a nationwide,
W chambers and associations that
have become part of our powerful
coalition over the years, and as we celebrate
There will
be frequent
communications
our seventh birthday, commend ourselves including myths and
grassroots program designed to build on being the nation’s only sustained facts about trade, the
support for international trade in grassroots trade education program. issue of jobs lost
communities across the country. When TradeRoots began, there were a versus jobs created, the fact that small
The U.S. Chamber of Commerce has made number of chambers that were actively businesses are doing most of the
a long-term commitment to rally support for and consistently involved in trade exporting, and an explanation of free
free and fair trade by forging local coalitions education and advocacy. But these trade agreements (FTAs) and why they
of pro-trade business leaders across America. chambers had yet to join forces as one are important.
Get involved, join TradeRoots, and become voice for trade. Now, thanks to our vast At the end of the communications, we
part of our growing trade network network of chambers and associations, that will be doing an aggressive push to ask
of chambers, businesses, and individuals. voice is a very loud and powerful one. people to sign up and join the TradeRoots
It is imperative as we continue our Coalition to support general trade issues.
Please send us, via fax or e-mail, your contact
grassroots efforts to educate the American If you have any questions, please contact
information so that we can update our
public on trade that we build a permanent Liz Reilly at lreilly@uschamber.com. Help
database. The database remains confidential. TradeRoots coalition to better leverage the us build an enormous permanent
E-mail power of the numbers, instead of building coalition to ensure that American
traderoots@uschamber.com issue-specific coalitions as we have in businesses can compete in the global
Fax the past, for example, China PNTR, world. Thank you once again for being
202-822-2461 U.S.-Australia FTA, or U.S.-DR-CAFTA. part of the TradeRoots network.
Currently under the management of
Liz Reilly, we are working together
ANNOUNCEMENT with VoteForBusiness.com (VFB) to
Send announcements and inquires communicate our message on a much
via fax to Jen Derstine, 202-822-2461. more massive scale to more than 35,000 Leslie M. Schweitzer
VFB contacts regarding general information Senior Trade Advisor
about why trade is necessary and U.S. Chamber of Commerce
S TA F F

Leslie M. Schweitzer
Senior Trade Advisor
lschweit@uschamber.com
Renee Carter
Director of TradeRoots U.S.-Korea FTA Talks Begin in June
rcarter@uschamber.com
fter announcing negotiations for a U.S. – Korea Free Trade Agreement (FTA) in

A
Emily Hagel
Associate Program Manager February, the U.S government found itself in the mandatory 90-day consultation
ehagel@uschamber.com process during which time the U.S. business community and other key stakeholders
submit comments on their priorities for FTA negotiations. The U.S. International Trade
Claudia Holwill
Commission held a hearing on April 20, 2006 to address the potential impacts of an FTA
Program Assistant
with Korea on the U.S. economy. The first round of U.S.-Korea FTA negotiations are
cholwill@uschamber.com
scheduled to begin June 5.
Liz Reilly The U.S.-Korea FTA Business Coalition, led by the U.S.-Korea Business Council hosted
Coalition Program Manager by the U.S. Chamber of Commerce, is working to promote an agreement that is
Cathy Blalock comprehensive in scope while generating the greatest potential benefits for businesses
TradeRoots Consultant and consumers. There is already encouraging momentum building for a U.S.-Korea FTA.
A bipartisan group of key U.S. senators and members of the House have publicly
Jen Derstine expressed support for an FTA, and Korean President Roh Moo-hyun has made this
TradeRoots Consultant
agreement a top priority for the remainder of his term in office. In the U.S. business
Ken Urbina
community, more than 150 companies and associations have signed on as members of
TradeRoots Intern the Coalition.
Areas of concern with the agreement will be the politically sensitive nature of
continue on page 3
www.traderoots.org | 3

REGIONAL OFFICE PROFILE

SBA Office of International Trade


A Tender Touch to the Sometimes Tough Issue of Trade

By Stephen Sullivan, Trade Specialist, Office of International Trade, U.S. Small Business Administration

hen the U.S. Small Business collaborative initiative would need to be business trade into the Summit dialog.

W Administration’s (SBA’s) Office


of International Trade hosted a
meeting in Washington, DC, of small
very focused. After all, small business
development was an extremely broad and
often vague concept. What they came up
Summit leaders expressly endorsed the
SME Congress, and both the Summit
Declaration and Plan of Action call for
business service providers from around the with, in consultations with contacts at the increased participation at the next SME
hemisphere in September 2003, they knew Organization of American States (OAS), Congress of the Americas, which will
right away they were on to something. At a was a commitment to work together to being held in Mexico City this month.
time when critics of the proposed Free advance a hemispheric network of public The central theme of the Second SME
Trade Area of the Americas (FTAA) were and private organizations focused on Congress of the Americas is “Utilizing
becoming increasingly vociferous and promoting and facilitating the Information and Communication
the issue of trade in general increasingly participation of small, and medium Technologies (ICT) to Promote and
contentious, everyone in the room agreed enterprises (SMEs) in international trade. Facilitate Small Business Participation in
on one thing: “With or without free trade This network would bring together small Trade.” During the SME Congress in
agreements, we have a responsibility to business development agencies, chambers Mexico, participants will be sharing best
help small businesses face the challenges of commerce, trade promotion agencies, practices on utilization of ICT for
and take advantage of the opportunities and others to create a dialog and share supporting SME trade, discussing strategy
that the global marketplace presents.” best practices on preparing SMEs to for more effective cooperation between
Although this simple statement may sound become successful players in the global the public and private sectors, and
somewhat innocuous, it really was quite— marketplace. It became known as the SME building personal and professional
perhaps not so much for what it said as for Congress of the Americas. relationships that will help them more
what it symbolized: common ground. The First SME Congress of the Americas effectively cooperate in promoting small
The organizations gathered that first meeting took place in Chile, October 5–6, business participation in trade.
day at the Inter-American Development 2004. Discussion and roundtable themes There will also be an experimental pilot
Bank included SBA counterparts from included factors affecting small business matchmaking event linked to the Second
Brazil (SEBRAE) and Chile (SERCOTEC participation in trade; strategies for SME Congress. Like the Second SME
and CORFO), the Nacional Financiera effective public, private, and nonprofit Congress, this pilot matchmaking will
(NAFIN) from Mexico, Industry Canada, cooperation on promoting SME trade; and focus on ICT, as a small number of
and from the private sector, the Camara the Summit of the Americas Process. More companies from the United States,
de Industrias from Costa Rica and than 75 delegates from 12 countries Argentina, Chile, and Mexico meet to
AmCham Chile. These organizations were participated in the First SME Congress of discuss the potential for strategic
invited to Washington to talk about how the Americas, including national summit partnerships and business opportunities.
they could work together to promote the coordinators from the United States, Chile, “By sharing expertise in preparing small
growth and development of, and and Argentina. businesses for trade, we help create better
strengthen the voice of small business in Follow-up on summit themes took trading partners for our own small
the Americas. place in DC in April 2005 as the Steering businesses” said SBA Assistant
Something else they all agreed on was Committee reconvened to draft Administrator for International Trade
that to be truly effective, any such recommendations on incorporating small Manuel Rosales.

continue from page 2 This FTA is also an opportunity to strengthen the critical
agriculture and creating market access for both countries. Other political relationship between these two countries and promote
challenges for the U.S. include access to Koreas automotive, liberalization efforts at a regional and global level. By joining
pharmaceutical, and service sectors. the TradeRoots coalition, you will receive more information on
We encourage the support of local chambers, the business this agreement and others and will be notified of when it’s time
sector, and individuals for the U.S.-Korea FTA. Korea is the United for your support. The coalition is free and an easy way for your
States’ seventh largest trading partner, and last year alone bilateral voice to be heard. Join the TradeRoots Coalition today. Go to
trade between these two countries was more than $70 billion. www.traderoots.org, and designate Korea as an area of interest.
TradeRoots
U.S. Chamber of Commerce
1615 H Street, N.W.
Washington, D.C. 20062

Upcoming Trade Programs Visit www.traderoots.org for additional information.

JUNE 1 JUNE 13 J U LY 9
Tennessee ECD Austin USEAC Enterprise Florida
Business Matchmaking and Ways to Finance your Technology Export Sales Mission to
Exporting Seminar Exports Dominican Republic
Nashville, TN Austin, Texas Santo Domingo, Dominican, Republic
JUNE 16-21
JUNE 2-7 Export Tennessee Trade Mission J U LY 1 0 - 1 4
AACCLA Australia El Salvador Trade and Invesment Tour
Business Future of the Americas Northern Virginia
Rio de Janeiro, Brazil JUNE 29
Fort Worth ITC J U LY 2 4 - 2 8
JUNE 13 Fort Worth Mayor’s Global TradeRoots SME Turkish
China Business 2006 Launch Reception Business Awards Business Alliance
With Ambassador Zhou Fort Worth, TX Turkey
Washington, DC

C H A M B E R B R I E F S / I N T E R N AT I O N A L T R A D E U P D AT E S

Mobile Area Chamber of Commerce Province and a major center of commerce 2 hours from of oil from Saudi Arabia to China currently provide 17%
www.mobilechamber.com Shanghai. The Chamber’s Shanghai Office will provide of China’s oil imports, and bilateral trade is reported to
bilingual assistants to help with communication. have seen large double-digit annual increases since 1999.
The Alabama Development Office and the Export Alabama For Saudi Arabia, China offers a sizable alternative market
Trade Alliance, including the Mobile Area Chamber, to the United States and Europe and a partner that
organized a trade mission to Guatemala City, Guatemala,
and San Pedro Sula, Honduras, May 14–20. The
U.S.-SACU FTA Now a eschews the West’s inclusion of calls for democracy and
political reform. However, China cannot offer the same
multi-industry mission focused on matching participating Long-Term Goal security guarantees to the region as the United States, so
Alabama companies with qualified agents, distributors, the Saudis value both relationships (The New York Times,
representatives, end users, and joint venture partners in Deputy U.S. Trade Representative Karan Bhatia and April 23, 2006).
these markets. The mission encouraged the participation senior officials from the member countries of the
of new entrants into the region. A briefing was held to Southern African Customs Union (SACU) have pushed
promote the trade mission at which Emily Gereffi, a back hopes to conclude an FTA in the near term. Instead,
representative from the Department of Commerce Trade the two sides will work to strengthen the trade and U.S., India Move to Expand
investment partnership currently in place by establishing
Information Center, presented opportunities brought about
by DR-CAFTA. a framework for bilateral engagement. This framework Commercial Dialogue to
would then be used as the basis for an eventual
The Chamber will lead a second trade mission to comprehensive FTA. Negotiations for an FTA had been Improve Trade Ties
Frankfurt, Germany, and Prague, Czech Republic, launched in 2003 to build on the success of the African On May 1, Under Secretary of Commerce for
September 16–23. Eric Stewart, deputy assistant Growth and Opportunities Act, but the United States and International Trade Franklin Lavin and Indian Commerce
secretary for Europe in the Department of Commerce SACU have stumbled over differences on core issues in Secretary S.N. Menon launched a renewed commercial
International Trade Administration, visited Mobile to the FTA (USTR Press Release, April 18, 2006). dialogue between their two countries. Originally
discuss market opportunities and access to Germany established in 2000, the dialogue serves as a mechanism
and the Czech Republic. for addressing bilateral trade disputes. The expanded

New Jersey Chamber of Commerce


Chinese, Saudis Build agenda for the dialogue will cover IPR enforcement, AD
and CV duty procedures and commercial opportunities
www.njchamber.com Trade Ties for SMEs. Lavin noted that the two sides have also been
holding a number of substantive public-private sessions
The New Jersey Chamber took members with an interest Chinese President Hu Jintao made his first state visit to to discuss general principles on how standards are
in doing business in Asia on a 10-day trade mission to Saudi Arabia on April 22 and signed a number of established, administered and enforced
China May 17–28. The trip included visits to Beijing, agreements with King Abdullah to strengthen cooperation (WorldTrade\INTERACTIVE, May 5, 2006).
Shanghai, Hangzhou, and Hong Kong. CEOs met with between the two countries. China’s economic growth has
their counterparts in Shanghai and had access to Gold pushed up its consumption of energy and has forced it to
Key appointments. Hangzhou is New Jersey’s Sister look globally for access to new energy resources. Sales