Locke says exports key in lifting economy

U.S. Commerce Secretary Gary Locke is returning to his home state Friday to discuss progress on the president's National Export Initiative, which aims to double American exports over the next five years and create millions of jobs.

Exports are a key to improving the U.S. economy and weaning it away from excessive borrowing and consumption, Locke and other members of the Export Promotion Council said in a report released Thursday. Exports also help drive the economy in Washington state, which depends more heavily on trade than any other state.

While 95 percent of the world's consumers live outside of the U.S., only 1 percent of American companies are exporters, Locke said. Of those, 58 percent export to only one country.

"If we can help them export to two or three countries, that would significantly increase exports and, therefore, the number of jobs," Locke said in an interview Thursday.

Locke will hold a roundtable discussion Friday with small and medium-sized businesses from the Seattle area to discuss ways for them to increase exports.

He will then give the keynote address at the Greater Seattle Chamber of Commerce annual meeting, where he is expected to talk more broadly about the economy, exports and jobs.

In the first seven months of this year, exports grew about 18 percent compared with the same period last year.

"We are making progress," Locke said.

Yet many hurdles remain. The tasks of the export initiative are to advocate for U.S. companies abroad, increase export financing, remove trade barriers and enforce trade rules.

This week the United States filed two cases against China at the World Trade Organization, accusing China of breaking its trade commitments on a category of industrial steel and electronic payment services.

"The success of the National Export Initiative will depend on whether there is fair and open access for U.S. companies, be it in China or other markets," Locke said.

After the U.S. and other governments spoke out vigorously against the Chinese policy of "indigenous innovation," which gave domestic companies advantage in government procurement contracts, Locke said, "We've actually seen the Chinese rethink plans."

"They've backed off on that at least for now," he said. "That has required international cooperation by business and governments around the world."

Two Washington state biotechnology companies are expected to sign letters of intent with investors in Shanghai on Friday, coinciding with a visit by Gov. Chris Gregoire to China to promote trade.

Geospiza, which develops software for genetic analysis, and Iverson Genetics, which provides genetic testing to health-care providers to assess drug sensitivity, both reached agreements with Shanghai investor Jiang Zhaobai, chairman of the Shanghai Pengxin Group.

Each company will receive several million dollars of investment capital and support for expansion into the Chinese market through Jiang's American Enterprise Center.

Washington state Agriculture Director Dan Newhouse, who is also in China, said this year the state has sold $14 million worth of cherries to China. Three years ago, sales were less than $1 million. "We're working to repeat that success story with pears and fresh potatoes," he said.

But for the future, clean-energy-related technology is the holy grail, President Obama has said.

Last week the United Steelworkers union filed a trade complaint with the U.S., urging an investigation of Chinese policies to expand its clean-energy sector, which the union says give Chinese producers an unfair advantage.

Locke said he has argued that buying state-of-the-art technology from the U.S. can benefit China in the long run because it's more efficient.

Ultimately, he said, "The country that leads in clean energy will lead the world economy."

Kristi Heim: 206-464-2718 or kheim@seattletimes.com