Speeches

Statements by Senior

Embassy Officials

Israel Export and International Cooperation Institute, April 17, 2007

8:30 am, Export Institute, Tel Aviv

I would like to thank you for inviting me to co-open today’s strategic planning seminar between the Israel Export and International Cooperation Institute and the U.S. Commercial Service.  No one needs to explain to Israelis about the importance of trade to their country’s economic health.  Exports constitute almost 50% of this country’s GDP, and for that Israelis can thank the Export Institute, which has played a key role opening up markets for Israeli innovation throughout the world.

Given that the enormous size of the U.S. market, American companies have historically been relatively less aggressive in pursuing export opportunities. For the past several years, U.S. exports have leveled off to around 10% of America’s GDP.

Frankly, a company based in California is often more concerned about sales to Illinois than sales to Israel. But 96% of the world’s population resides outside our borders, and evidence shows that American companies engaged in international trade and investment are more innovative and productive than competitors that focus just on our domestic market.

We believe it is one of the responsibilities of the U.S. Government to address lingering U.S. private sector complacency about international trade, and to help American firms take advantage of the lucrative market opportunities that await them abroad. Later this morning, Douglas Wallace and his staff will discuss in greater detail just how the U.S. Commercial Service does this.

I was very pleased to learn that the primary goal of today’s meeting is to discuss how America’s and Israel’s premier trade promotion agencies can work together to achieve common goals. Before, one might have considered this an impossible task; on the surface the Israeli Export Institute and the U.S. Commercial Service would seem to have competing mandates.  But international trade is becoming complex, and in this case, complexities can sometimes result in a need for partnerships, or stronger partnerships among erstwhile competitors.

We all learned in our basic classes on International Trade why it is in Spain’s advantage to sell olives in exchange for French wine. But in today’s environment of high-tech industries, globalization, joint ventures, highly mobile capital, and outsourcing, it’s a lot harder to define a country’s comparative advantage.  Any government’s job of protecting and promoting its national commercial interests has become far more complicated.

At a time when Toyota employs 41,000 Americans, and 70 percent of the new Boeing Dreamliner is built outside the United States, we in government are frequently asked to perform a delicate balancing act between helping our businesses to prosper and promoting full employment for our countrymen.

But everyone should remember that international business is not a black-and-white, zero-sum game.  When a company like RAD decides to open a facility in New Jersey that hires hundreds of Americans it should not be interpreted as a threat to Israeli wellbeing –certainly no more than Intel’s decision to employ over 7,000 Israelis in its six facilities in this country should be seen as a threat to the United States.  In fact, both cases are examples of mutual benefit for America and Israel.

International business cooperation, in all its various forms – direct investment, joint ventures, agency agreements, distributorships – results in technological collaboration, innovation, and other synergies that defy quantification whether in dollars and cents, or shekels and agarot.  This is true on a company scale but even more so at the national level.

International business and, in particular collaboration between U.S. and Israeli businesses, contributes to a stronger U.S.-Israeli bilateral relationship.  It gives life to our shared values and common world vision, fosters true personal friendships, and promotes rising standards of living for workers in both Israel and America.  Through mutual cooperation, the Export Institute and the U.S. Commercial Service will help open new horizons in all these areas through their mutual cooperation, here today and into the future.

In closing, please allow me to again wish you a fruitful session.  I look forward to hearing about increasing collaboration between the Israel Export Institute and the U.S. Commercial Service.  Together we can find mutually beneficial solutions to the common problems that our exporters face in today’s highly competitive global marketplace.  The future wellbeing of our fellow citizens depends on it.  Thank you.