President Obama at Meeting of the Export Council

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President Obama at Meeting of the Export Council

James McNerney: Okay Why don’t we get going? Welcome to the President’s Export Council It’s nice to see all the old stalwarts and some of the new ones We have got — we’re always time challenged Today could set a new precedent, but we will get through it We have eight letters to consider We think we have a streamlined process to get through it Of course, we have the President, who will join us in about an hour and a half, around 11:00 I believe I think our stretch goal should be to get through our business by 11:00 so that we’re not obviously stretched beyond the President’s visit Look, just a couple of housekeeping items Since we last met in March, we’ve had some transitions A couple of CEO departures, a big thanks to Stephanie Burns of Dow Corning; Glenn Tilton; and Chip Kaye Glenn used to run United Airlines, is now with JPMorgan bank in the Midwest; and Chip Kaye of Warburg Pincus We thank the three of them for their service (applause) Of course, we have some new members to welcome, the foremost of which, Penny Pritzker, who is going to make some comments to us We just had a great breakfast with her this morning, and this is going to be a fun ride with Secretary Pritzker So you’ll get a sense of that as you hear more from her We are very pleased to have Oklahoma Governor Mary Fallin — she’s here with us today — the new chair of the National Governor’s Association (applause) We also have Mayor Scott Smith of Mesa, Arizona, a town I happen to know a little bit Mayor Smith, great to have you here (applause) He, of course, is the President of the U.S. Conference of Mayors So we have more local representation than we can stand after not having enough for a long period of time And we are pleased that you both could join us, Governor Fallin and Mayor Smith, and we look forward to hearing a couple of comments from you a little bit later in the meeting on what’s going on at the state and local level We also have several new CEOs joining us, Robert Wolf of 32 Advisors Robert, we saw you at breakfast this morning Have you — there he is — Robert Don’t be shy Just stick your hand up Arne Sorenson of Marriott, Arne? Saw you earlier There you go Welcome Good to have you here Andres Gluski of AES — hold your applause until we get to the end Marilyn Hewson of Lockheed Martin Marilyn, where are you? Marilyn, it’s great to have you here And Vanessa Keitges of Columbia Green, and — there she is And Ken Frazier of Merck Now we applaud (applause) Also joining the PEC but not able to be with us today, Ginni Rometty of IBM and Ian Read of Pfizer So we’ll welcome them at a subsequent meeting We look forward to working with all the new members So let me stop for a second, and our vice chair, the estimable Ursula Burns, do you have any comments? Ursula Burns: I’m always actually rushed Pleased to follow you, Jim So thank you for that I want to add my welcome to all of the new members, to the Governor of Oklahoma, and to the Mayor Thank you for being here And so all the additional addees here This meeting comes at a really important time for us As most of you know, we are well on our way to doubling exports, but we have some wind in our face and we have to actually keep our heads down and keep pushing And that’s what that organization is all about TPP, WTO, ITA, and the WTO, all important items that we’ll talk about today So just, you know, head down, keep working This is a real group We do real work James McNerney: Yeah Thank you Urs And you do a lot of it, and I appreciate that, Ursula, very much Secretary Pritzker, we’d love to hear from you Penny Pritzker: Thank you, Jim Thank you, Ursula And a special welcome to the new CEO members of the pack I also want to acknowledge Mary Andringa I had the pleasure of visiting her as well as Vanessa on my listening tour over the last couple of weeks So it’s great to see some familiar faces in the room

who I’ve just seen most recently As you know we’ve seen tremendous export growth under the NEI, and exports have helped drive our recovery The U.S. exported more in the first half of 2013 than the entire year of 2003 So we now have 30,000 more businesses exporting than in 2009, and we’re on track to break an annual export record for the third consecutive year So this is a seismic shift in exporting, and that’s helped to catalyze a jump of $600 billion of more exports from 2009 to 2012 So let’s put that in dimension or give you something to equate that to $600 billion equates to the combined GDP of Israel, New Zealand, and Ireland So given these facts, it’s no surprise that supporting U.S. exports will remain a priority for the Department of Commerce and for me as Secretary, but clearly we have more work to do For starters we definitely need to continue to inform businesses about what tools are already available I’ve heard over the last couple of months from too many CEOs on my listening tour that they were unaware about our commercial service officers or their customized gold key service or our advocacy center which just had a record year of $74 billion in U.S. export content So we need to continue to get the word out More broadly though, I think it’s time to look at what has worked and what has not worked and how we measure our progress given the global macro environment So I have asked my team to develop a framework and to assess the NEI’s impact so far What are the efforts that have been most impactful? What’s working? How can we do a better job? How do we focus our limited resources? My hope is that the PEC will advise us on this assessment and help us both scope the assessment as well as look at the data and help us draw conclusions from that So from there I think we can refocus our energy on the areas that make the biggest difference and have the greatest impact So before I conclude, I want to just pause for a minute and acknowledge a very special thank you to Francisco Sanchez, the undersecretary for ITA, as today is his last meeting (applause) I think we’re all aware of Francisco’s great — he’s been a great asset to this country over — during his service at the Department of Commerce, and I know I for one will miss him terribly He’s been a great — he’s been a great assistance to me over the last 10 weeks And I will end with that and say thank you very much I look forward to working with all of you James McNerney: Well, thank you very much We look forward to working with you, and furthermore, we look forward to making recommendations that can help you in your mission which is a very important one for our country, so it’s wonderful to have you We have Valerie Jarrett here, Senior Advisor to President Obama Do you have any comments? Valerie Jarrett: Just good morning everyone Welcome Delighted to be here for the new members I think the message is that this actually works It’s bipartisan We have a public/private partnership We talk all of your advice in counsel very seriously, and we look forward to working, not only with Penny Pritzker, the new Secretary of Commerce who has really hit the ground running, but I also want to mention Anthony Foxx, our Secretary of Transportation is new here Anthony, put your hand up so everybody knows where you are (applause) Also, Tom Perez, our new Secretary of Labor Tom, welcome (applause) And even though you all know him, we want to welcome Mike Froman in his new capacity as U.S. Trade Ambassador Mike (applause) That’s it James McNerney: Thanks for covering for me there Secretary Vilsack, I understand that you have a time — a little bit of a time challenge, so would you care to make some comments before you have to go? Tom Vilsack: Well, I appreciate the opportunity, and welcome to all the new members I’ll just give a brief report on farm exports which is a positive story and continues to be a positive story We have had — experienced record farm income this year, in large part because we have had record farm exports This has been the five best years for farm exports

in the history of the country One of the reasons why we’ve had record farm income is that 25 to 30 percent of all farm income is directly related to exports So it’s serious business for us at USDA And I think we’ve had a great cooperative relationship with USTR in trying to promote the free trade agreements that have recently been passed We’ve seen a significant uptick in activity in Colombia as a result of the free trade agreement We’ll continue to work in Korea and Panama as well I think we’ve also worked very hard to reopen markets I know that the Governor of Oklahoma would be interested in beef as I am And Japan, Korea, and soon I believe Mexico and Brazil, you’re going to see a reopening of the beef market which is going to be good for American agriculture Our foreign ag service does a great job of batting down barriers Last year we basically batted down 300 different barriers that often times are created to make it more difficult for American agriculture products to access markets And we’re obviously working very hard with USTR on trade promotion as well as the trade agreements that are being negotiated and discussed, both on Trans-Pacific partnership and the EU Trade Agreement which are very high priorities for this administration and for the President I will not underestimate the difficulties from an agriculture perspective in both of those areas Market access in TPP is a concern, and I think some of the resistance to technology, biotechnology in particular, in the EU presents unique challenges with reference to that trade agreement But we’re looking forward to continuing to work hard We will continue to promote American agriculture which is the finest and greatest in the world James McNerney: Okay Thank you (applause) A very encouraging report actually, and I know, I think, Mike, you were going to talk about some of this later, but your engagement there is correctly Thank you for that I think — just wanted to add my welcome to Secretary Perez and ask if he’d like to make a remark or two Thomas Perez: Thank you, Jim And thank you to all of the CEOs that I’ve been in contact with, Andrew and others It is day 60 on the job, and it has been a remarkable experience And what’s interesting to me is that I’ve had a privilege of spending time with many of you in this room, and I’m still working through the list So there are others that I will be in contact with And what I continue to hear, I was out in Denver yesterday releasing — announcing the latest round of our TAP grants These are grants that relate to our partnership with community colleges to build that pipeline of tomorrow’s workers And the beauty of these grants is that they are very, very aligned with the needs of industry And so there was a grant in Michigan I spoke to Congressman Levin yesterday; he’s very excited about that But what I keep hearing, Jim, I heard it from you, I hear it from others is the paradox We have this unacceptably high unemployment rate, and at the same time — just yesterday, I’m with a small medical device manufacturer at the Front Range Community College He wants to double the size of his workforce, but he doesn’t have the workers And so where we believe that we add the most value at the Department of Labor is in making sure that we have that skilled workforce for tomorrow I applaud Governor Fallin, and I was at — I spoke yesterday at the National Association of State Workforce Professionals with Governor Hickenlooper in Denver, and your focus on skills as part of your chairmanship of NGA is exceedingly exciting to that group, and I applaud your efforts And so the President’s announcement yesterday on the latest round of TAP grants is another indication of our investment in skills and a demand-driven structure The days of train and pray are over Everything we’re giving out is related to jobs that are going to be out there The curricula that’s being designed is being designed in partnership with the industry So the certificates that they get when they walk into your door applying for a job is a certificate that will be familiar to you because you helped create it And that’s the essence of demand-driven sector strategies And I really enjoyed spending time with Secretary Pritzker We were at Anne Arundel Community College last week We’re taking the road show across the country so that we can address the skills gap And I think that’s the biggest value added that we can bring to the table at the Department of Labor I want to close simply by saying thank you to so many folks in this room who have invested so much time in hiring veterans I was speaking with our friends at Disney They’re putting a program together in November to educate small businesses about how to hire veterans And the way in which folks have stepped up has

been really remarkable And we’ve accomplished a lot We’ve got more to do We have an office that’s exclusively dedicated to that, and they will continue to do that work in partnership with you So thank you James McNerney: That sounds like — more like a 360-day report than a 60-day report (laughter) That’s impressive We look forward to working with you And, Secretary Foxx, our new Transportation Secretary, would you like to make a few comments? Anthony Foxx: Yes, sir Thank you, Mr. Chairman and Madam Vice Chair I want to first of all acknowledge Governor Fallin who hosted me in Oklahoma City recently, and also give a shout out to my fellow former mayor — former Mayor Scott Smith from Mesa, Arizona, who was a colleague of mine before becoming Secretary of Transportation You know that we can’t export without having the ability to move our goods overseas And over the last several years, the DOT has been working very hard with the President’s vision to try to advance our ability to do that 48 million tons of goods move across our country every single day, and they move in a variety of ways And we know that we can do better and create more capacity — the first is that under MAP-21, the most recent surface transportation bill, there’s a requirement that we develop a national freight plan And to do that we have populated a national freight counsel that is composed of public and private sector leaders across the country to help us forge that To be very candid with you, one of the challenges with the national freight plan is that it focuses exclusively on highways by congressional mandate when we know that we have rail access needs, we have port access needs, and so we’re trying to work with our leaders in Congress to develop a multimodal piece of that vision The second point that I’d like to make is that we also have 111 open skies agreements which is very vital to another way that we move goods around the world And in this most recent round of Tiger, cumulatively we’ve put about a billion dollars of investment in our port access We think that that’s going to be an increasingly important part of our strategy as a country in terms of exports And finally, just the President is very focused on this I was with him in Jacksonville, Florida, recently Also this week, was with Vice President Biden in Charleston, South Carolina, and Savannah, Georgia With the widening of the Panama Canal, there’s an enormous opportunity for us in this country to capture global markets We expect exports to double around the globe over the next 12 years, and we want to capture as much as that in the United States as possible So we’ll keep working at it One other thing is that as Congress continues to debate these issues on infrastructure, it’s very important for our business community to raise their voices on these issues because we need you as advocates on what is a nonpartisan issue Thank you James McNerney: Thank you, Mr. Secretary You know, your comments on the multimodal access, very encouraging We’ve had a couple of letters over the years that focused on that So we very much appreciate your early focus on that I think it can unlock a lot as we’ve stated a couple of times Secretary Moniz, I think we had an opportunity to meet earlier and greet you, and it’s great to have you here And do you have a comment or two? Ernest Moniz: I do Penny Pritzker: I apologize, Ernie I didn’t see you there I would have recognized you Mr. Moniz: Oh, no That’s fine Thank you, Jim Actually, apart from Tom, I’m feeling like a veteran of the cabinet (laughter) I’m approaching four months, so I can understand why Valerie said that Let me just comment There are numerous issues at kind of the intersection of energy and exports And as you all know, energy is a multitrillion dollar business, and there’s going to be an enormous opportunity in terms of infrastructure and clean energy globally So we are working hard at both manufacturing enablers and at products in the context of the President’s Climate Action Plan and the President’s commitment to so-called all of the above energy strategy So on the enablers, let’s say, one is of course to continue the shale gas revolution with low-cost gas enabling manufacturing in this country to move out; that involves our looking at things like the environmental footprint

minimization, and infrastructure build out, et cetera Secondly, there are programs such as our loan programs in terms of deployment As one example, as part of the President’s overall work on the auto industry, we’ve had loans from established Ford to Tesla And really, really increasing tooling, Tesla will start exports next year for example Another kind of enabler is work on variety of advanced manufacturing initiatives, again, another priority of the President Examples whereas, developing the technologies for carbon fiber which will be an important piece of technology, 3D printing, et cetera On the product side, well, we’ll start with shale gas again, L and G exports will probably start next year Over the next few years, we’ll begin seeing some exports, and we are judiciously looking at those export licenses A lot of work in terms of energy efficiency, products, and services I have found going to various countries, a tremendous interest in working with our companies on industrial energy efficiency as a major focus That’s from Brazil to Turkey Supply, electricity supply infrastructure, for example, the President’s Power Africa initiative, we’re working with AID, with the Ex-Im Bank looking at that going forward And as one other example, nuclear power where there’s a tremendous interest in our development of so-called small modular reactors and I think with aggressive development of that, we are supporting the design certification There’s going to be a huge export market there And we’re streamlining the so-called Part A10 agreements to allow our companies to work on this The last thing I’ll just say is a lot of the issues that you’re going to be dealing with, Jim, clearly affect us as well I’ll just mention one Local content in terms of shale gas exploitation in other parts of the world, we’re seeing this as a real barrier to their own development of these resources and to our companies taking part So that’s just kind of an overview of some of the things we’re dealing with James McNerney: Well, thank you for a very comprehensive report We have a letter today on localization protectionism, in essence, which is what you’re getting at And I think one of the hidden stories over the last three or four years is the progress that this country has made on energy, in large part through some of the initiatives of your team And so, hopefully, the momentum can be supported, and we can keep it going Now, it’s time for the Froman report This is the most established report on the PEC over the last few years The job changes but the man stays the same (laughter) Ambassador Froman Michael Froman: Thank you, Jim It’s good to see so many friends and supporters around here And I say that because perhaps even uniquely within the U.S. government, trade policy is the product of collaboration It’s part of collaboration with the business community, labor, NGOs and other stakeholders It’s the collaboration of all the agencies And we’re working exceedingly closely with Commerce and USDA and State and Transportation and Labor and Energy and Treasury and others; have a tremendous input into what it is we do And, of course, last but certainly not least, it’s a collaboration with Congress I’ll come back to that at the end when we talk about trade promotion authority We are actively involved, as you know, in a series of negotiations We are entering the final stages of the Trans-Pacific Partnership negotiations, and our goal is to try and wrap that up by the end of this year A lot of outstanding issues, our goal in negotiation is to raise the standards — not only open new markets, but raise standards to level the playing field for American workers and American firms, and to introduce into the bloodstream of the multilateral trading system new disciplines, higher standards that can have a more positive impact more broadly We’ve launched the Trans-Atlantic Trade and Investment Partnership, also known as TTIP We’ve had one round of negotiations We have a second one coming up next month There too, we have two advanced industrialized economies, well-regulated economies Our goal is to figure out how to bring them more closely together and to deal particularly with the regulatory and standards issues so we can enhance our competitiveness vis a vis the rest of the world as well In the World Trade Organization in Geneva, we’ve got three negotiations going on right now, one about the expansion of information technology trade, another about expansion of trade and services, and then a very important one on trade facilitation which we’re hoping to bring to a close at the end

of this year as well; how to reduce barriers, unnecessary obstacles at the border that affect really every business in every country And the last one I’ll mention is last month I was in Ethiopia to launch a formal review of our African Growth and Opportunity Act, our GOA program, which expires in 2015 We want to take these next several months to look at what’s worked well, what hasn’t worked well, how we can improve upon it as we seek renewal of that None of this can happen without trade promotion authority And we are now engaged with our colleagues in Congress, Ways and Means Committee, Finance Committee, to talk about how to put together a bill that can have bipartisan support to give us the authority to conclude and get these negotiations and agreements through Congress, and that can also support workers and make sure they have the skills available through a renewal of the Trade Adjustment Assistance Program going forward as well And we will be engaged very much with Congress and its leadership, and it’s important that they also hear from all of us how the trade agenda is key to your future and building jobs here in America and enhancing exports So, Jim, I’ll stop with that James McNerney: Thank you very much, Mike Listen, the trade agenda has never been bigger, never, ever been bigger And we want to do everything we can to support you So please call on us I know when you get in the middle of these negotiations that occasionally we get calls We want those calls to help in any way we can Now, back to Governor Mary Fallin to talk about export workforce training and what’s going on at the state level I know the agenda is big We’ve read a lot of your material I personally know it by the interaction and partnership we have with Boeing down in your state But again, congratulations on assuming the chairmanship of the NGA, and we look forward to anything you might have to say Mary Fallin: Well, thank you, Mr. Chairman, it’s a great pleasure to be here And Vice Chairman Burns, it’s great to see you And it’s a pleasure to be here to represent the NGA and the governors across our United States And so many of the issues all of you talked about today are things that governors are concerned about So it’s a pleasure to be here And as a couple of you mentioned, and I just want to say this real briefly and then I want to talk about exporting and why it’s important to our states, but I launched my state and my federal initiative for the nation, for the NGA called “America Works: Education and Training for Tomorrow’s Jobs.” That’s basically about closing the skills gaps, as the Secretary of Labor was talking about, and trying to help America become more competitive, not only within our nation but certainly internationally And that’s important to exporting So we’re excited to work with all the various members of the export counsel to help with our workforce and our skills gap within the nation But I want to talk to you a little bit about our states and about exporting State economies are increasingly global in terms of both markets and competition As the governor of Oklahoma, I know that in my state and with our businesses, we aren’t just competing among the businesses within our states and businesses between states or even within the region, we certainly compete globally in this economy Governors are also leading the efforts to grow their state economies by promoting the export of goods and services and attracting international businesses to our states In particular, small- and medium-size businesses in the United States total nearly 30 million and employ about half the total of U.S. private sector payrolls According to the U.S. Small Business Administration, however, only about 300,000 of those businesses export So behind major exporting companies are thousands of smaller companies classified as what we call indirect exporters that help produce the final goods and services for export These companies represent untapped opportunities for our states to help compete globally with trade and export opportunities In my state of Oklahoma, we have about 3,000 exporting companies of which about 85 percent are small- to medium-sized enterprises, and this is certainly a number that we in Oklahoma hope to be able to grow As you were probably aware, many Oklahoma companies and many Oklahoma exporters are leaders in the energy sector Secretary Moniz, I appreciate your great comments about that I know my Oklahoma companies will be thrilled to hear what you had to say about energy But these companies are also contributing to the ongoing energy revolution that Secretary Moniz talked about Advanced drilling techniques, many that are being pioneered by Oklahoma companies, have moved our country from having energy scarcity to having energy abundance, and as a nation, we should be taking advantage of every opportunity to support

energy exports and also reap the benefits of the vast new supplies of American energy that has been unlocked by technological advances But moving forward, governors will continue to be engaged at a national and international level to promote exports Since 2011, the National Governors Association has opened up subnational dialogue with Chinese provincial governors And the NGA has led two trips to China and also organized a trip to Utah which Chinese officials came to the Utah meeting NGA’s most recent trip in April brought governors from Iowa, and Virginia, and Wisconsin to Beijing for several high-level meetings with the Chinese President At home earlier this year, the NGA sent a letter to Congress urging the reauthorization of the state trade export promotion, the STEP grant program And since 2011, this program has provided about $30 million annually to state trade efforts to both our small- and our medium-sized enterprises enter and also expand into new export markets Some states are experiencing strong levels of success, with some achieving rates of return of 90-to-1 or higher State efforts have contributed directly to the progress in meeting the national export initiative goal of doubling our exports by 2015 Oklahoma companies represent a very clear example of the kind of productive row that the STEP grants have had in the states We have taken $1.1 million in STEP investments and we’ve been able to generate out of that $1.1 million a $67 million return That’s a rate of return of 5000 percent from my Oklahoma companies So the reauthorization of the STEP Grant program beyond 2014 will help ensure that we have continued growth within our nation’s global competitiveness, help us maintain stability in the program’s operations and the outlays, and more importantly, in our states it creates jobs And so, our hope is that the NGA will continue to be a catalyst, a convener, a broker, an advisor for the U.S governors who want to engage in international trade and investment opportunities Because we believe there are great opportunities that exist for governors to be able to lead the efforts to grow our state economies through the exporting of goods and services And our leadership of governors will emerge, what we believe, is through the those four primary roles: one as the advocate Governors are suited to be able to lend their prestige, their vision, their leadership to advocate for competitiveness and expanded trade, in investment, both within in our state and also by our key constituents that are in our states We’re secondly the state ambassador Governors are the CEOs of their state and so they’re the best ones that can help promote and be the chief sales person for not only our states but certainly for our nation And we’re also the chief convener in our states Governors have a deep roster of contacts And we like to convene stakeholders together from both the private sector and the non-profit public sector, academic communities, to be able to set strategies, to identify needs, opportunities, and challenges, to expand international involvement And third, we’re the broker Governors are often the strongest brokers of resources to build states’ international competitiveness So governors’ influence and the allocation of the state resources through the budgets and the processes can help prioritize our international trade and investment within our states for economic developments And it’s very helpful for us And governors also help shape the states’ higher education system We talked about the skills gap, which is very important to incorporate when it comes to trade and investment strategies So there are a lot of exciting actions that are underway today in the states in regard to trade and investment And we just appreciate the opportunity for the governors to have a seat at the table to share some of our ideas And of course, we want to be a partner and to help lead a collaborative effort to expand exporting from our various states and to help our nation Thank you so much James McNerney: That’s tremendous And we’re delighted that one of the first points of engagement in your new role was this body Mary Fallin: Thank you James McNerney: Because, you know, we’ve always had this vision that the trade agreements and the flow that we now have and the opportunity that we now have can be connected at the local level with policies, and practices, and all kinds of emphasis that you can bring with the confidence that the government here is opening up huge through their policy, and through their engagements, and through the FTA development You’re going to have lots of opportunity out there So you’re connecting with, when it’s all done, 30 percent more business opportunity than you were before he began these efforts on just TTP and the European thing alone So it’s great to have you here So thanks for that report

And Mayor Smith of Mesa, home of — home of the Apache helicopter (laughter) Congratulations on — Scott Smith: The incredible Apache helicopter James McNerney: (laughs) Yeah, thank you (laughter) Congratulations on becoming President of the U.S. Council of Mayors We’d love to hear your comments Scott Smith: Thank you, Mr. Chairman, and Vice Chair Burns, and Secretary Pritzker Congratulations from the nation mayors on your appointment Also Secretaries Moniz, Perez, of course, Anthony Foxx, Ambassador Froman, and Secretary Vilsack, we love all of you but we do have a special place in our heart to former mayors, so — (laughter) — Secretaries Vilsack and Foxx, you’re A number one (laughter) We look forward to working with all of you, though As President of the Conference of Mayors, I also would like to thank the President for giving the nation’s mayors a seat at this table It’s very important I’d also like to thank Jacksonville mayor Alvin Brown, who’s chair of our conference’s metro exports/imports task force, for filling in this chair in the previous two meetings And it’s an honor for me to be here today You know, my text here says that exports are key to our nation’s cities’ economic growth And I look around and I think people are going, “Yeah, like, duh,” you know (laughter) It’s great to preach to the choir It’s a heck of a lot better than preaching to the mob I’ve done both (laughter) But it doesn’t change the importance of our task because sometimes preaching to the choir is more difficult because we all agree on the overall objective The question is, how do we achieve that? How do we enact those things that work? We know that economic forecasts, that the real growth in U.S. GDP will come from exports That’s true in cities Cities are the drivers of America’s economy Most 85 percent of the GDP happens in metro areas We truly are a collection of metro economies So as mayors, we understand how important it is to help the nation expand our overseas market We know because we talk to our businesses on a one-on-one business We take what the governors do and hopefully narrow it down to mayor-to-mayor, business-to-business relationships That combination is an extremely powerful force in building our economies I know Mayor Brown talked to you before about how we in the conference are working within the task force to develop metro export plans to identify — especially to identify small- and medium-sized companies who not only might be interested in exporting but who don’t yet recognize the true opportunities that exist in exporting We’ll continue to work with the national export initiative, commerce, other organizations, including Brookings with whom we work very closely, and many other federal agencies who are here Suffice it to say, we’ll be working this year with all of you to take our export initiatives to a new level As mayors, we’d like to — I’d like to concentrate on the small and medium businesses Most of you who are large in here, you know no boundaries International business is your way of doing business; that’s how you do it But less than 1 percent of the businesses in the United States are involved in any type of export activity We’re missing out on a huge opportunity And I can tell you one quick story about a business in Mesa Now this isn’t sexy business It’s an entrepreneur who discovered — well, he didn’t discover, but others discovered that when the temperature gets above 100 degrees, milk cows don’t like to work Well, I don’t like to work when it gets above 100 degrees (laughter) But milk production decreases significantly when the temperature goes above 100 degrees So this entrepreneur developed a very unique cooling system that allowed cows to bask in cool air and therefore produce more milk in the hot Arizona summers Well, funny thing is without even knowing there’s another part of the world, the Middle East, who has discovered and is encouraging milk production And guess what? The temperatures there often get above 100 degrees So by accident, this entrepreneur in Mesa, Arizona became a supplier of milk cow cooling systems to Saudi Arabia and other Middle East companies Now, almost over 70 percent of his business is done internationally Now, this is just one story of many that we could replicate if our small- and medium-sized businesses understood and were not intimidated As somebody who 20, 30 years ago was in the water purification business, we were trying to export equipment to Indonesia, the Philippines, India — and by the way, somebody made a lot of money in water purification business in those countries It wasn’t me (laughter) I understand the barriers that one must go over And they’re substantial when you’re talking about customs brokers And I learned the difference between what it — I learned what it took to fill a 20-foot cargo, not to mention a 40-foot You got to put a lot of plastic bottles in there to fill it and it’s not very good When we’re successful in treating our — in expanding our business exports and in letting our businesses know what is important, what opportunities are out there, we will grow our economies To that end, one of my priorities as President of the Conference of Mayors is to get this message out, to get our

mayors talking this, to get our economic development departments working with you to make this happen I’m especially interested in trade within the Americas I always learn in business that it’s a lot easier to build within your existing customer base than it is to find new customers And there’s no doubt that in any city in this country, when you look at the top one, two, or three trading partners, Canada, Mexico, and Latin America come up And Mexico and other Latin American countries are especially important You know, a couple — three weeks ago, I was down in Mexico City meeting And I know, Secretary Pritzker, you’re heading there maybe today because they told me about that And it was amazing, the changes in Mexico and the opportunity And we look at things like immigration In Arizona, I know a few things about immigration, the challenges And yet, what we don’t talk about is how export builds both economies and helps us to solve other problems I had an interesting experience in Mexico City that helped explain the changing world we live in I was there and met with a Mexican — with a Mesa company who actually is a large provider of components to the cable industry worldwide All of their manufacturing currently take place — takes place in China Now, that’s not an unusual story But we were down in Mexico meeting with a Mexican company to form a joint venture to bring manufacturing from China back to the Americas But here’s where the story changes The manufacturing was not to take place in Mexico which is what you would think would normally happen No, the manufacturing was going to come from China back to the U.S. so we could export to Mexico and Latin American countries Because the opportunities were greater to stamp the great, “Made In America” label and to export to Mexico and Latin America than they were to actually manufacture in Mexico There’s no doubt that with these — with our changing world economy, these opportunities will expand even more In the Phoenix/Mesa metro areas we’ve said — and Mr. Chairman, we are so proud to have Boeing as one of our largest employers That was my gratuitous suck-up to the chair, by the way (laughter) Ken Frazier: Subtle Scott Smith: Thank you (laughter) Thank you, Ken You noticed, huh? But Phoenix — the Phoenix/Mesa metro area is a great example of lost opportunity Although we are the 12th largest economy — metro economy, we lag Even though we border Mexico and you’d think it would be second nature, we lag in export As a matter of fact, as far as export business, Phoenix/Mesa is about the same size as Washington, D.C. And I’m still trying to figure out what Washington, D.C. exports (laughter) But we know that there’s opportunity missed One of the things mayors are focusing on and Secretary Foxx pointed out is our infrastructure: certainly seaports, airports, rail, other things But one thing we shouldn’t forget, and I know once again in Arizona, is our land ports It’s very difficult to expand trade when trucks are waiting six, eight, nine hours at a border that is underbuilt, and infrastructure on both sides of the border which are not adequate to transport goods and services Finally, I’d just like to leave with one thought Our cities and metros areas are projected to grow by over 80 percent in the next 30 years People are moving to cities The U.S. is one of the most urbanized countries in the world and will become more and more urbanized That’s a lot of people who require schools, hospitals, transit facilities, water, waste water, other facilities All form critical services and infrastructure But most importantly, they need jobs They need good jobs They need jobs in areas where the United States has proven over time, we are leaders They need to take advantage of truly a global economy, something which I’m still not sure we fully get in the United States One of the things I learned as I traveled is that other countries trade across border as a matter of fact We think trading across state lines is about as foreign as it gets and we’ve got to change that And we as mayors to committed to change that So Mr. Chairman, thank you very much for allowing us to participate We hope to be active participants in this effort I think much by the nature, mayors will be active participants Whether you want us here or not, we’re going to be involved And I look forward to our discussion date Thank you very much James McNerney: That terrific You know, we love the energy And I have this feeling you’re going to keep us real (laughter) I appreciate it — appreciate it very much I think Senator Klobuchar is here with us from the great state of Minnesota Do you have a comment? Amy Klobuchar: Well, thank you, thank for not mentioning the Vikings again as you did at the beginning (laughter) This is my time to give the upbeat report from Congress Actually, I hope it will be more upbeat with the help of the business people around the table As you know, the House is giving us a somewhat crazy bill that could shut the government down; I think we have the votes to change it And I also think that there are some Republicans, I think it was

Senator McCain that called it the height of foolishness, the bill that’s coming over, that are going to hopefully work with us to get a better situation And then, of course, that goes right into the debt ceiling vote, which you are well aware of the effect there And I’m hoping that cooler heads will prevail so we can work on a lot of the stuff we’ve been talking about this morning The immigration bill, I think, still is hanging there I’m not sure on the timing of it But in August, we did a lot of work with some of the Republican House members and the coalition of people working on this bill did, including the business members Senator Hatch and I had the I-Squared bill, innovation, immigration, which focused on more green cards and more H1B visas which partially fill some of the job openings that we’ve been talking about And I think it’s a necessary part of the solution in addition to training our own workers And then most of that is in the bill The last bill I would just mention that I think has a chance of surviving with Secretary Vilsack’s leadership is the Farm Bill I’m on the conference committee and while they’re doing some pretty draconian things in the House right now, I still think it means that it will go to conference committee and we will have a chance of getting something done on that bill, which is important for the future of agriculture and also actually brings the debt down over the last bill In terms of exports, we have some — like everyone else, my state has been very happy with what’s been going down Our unemployment rate is down to 5.2 percent A lot of it has to do with exports and with export giants in our states like Cargill, MedTronic, companies like General Mills and, of course, Radisson hotels I just did that to bug Arne (laughter) Actually, Arne and I have worked together on this visa issue, as the administration has And that’s one of our success stories in that we’ve seen a 6 percent increase in tourism over the last year And a lot of it has to do with speeding up that visa process The work that Tom Nides did before he left with the State Department, the work that Senator Blunt and I did in pushing that issue And I just think there’s much more to do there when you look at the money that can come in, not only for tourism businesses but also for every business that wants to bring people in on trade visits, and to conferences, and other things So I think that continues, has to be a big push And obviously there’s things in the immigration bill that would greatly help with that as well The one issue that I wanted to address today that I was hearing, I spent a lot of time with our medium-sized businesses over the last few months When it comes to exports, they are ready to go They are already doing a lot of exports But one of the issues that I know people around here are aware of and actually one of the letters that we’re voting on today is relevant to is this issue of the export controls and the list that we have And I know work is being done to consolidate the various lists of the control exports But I heard it time and time again about the unfairness that they’re experiencing vis-à-vis their competitors in other countries that they literally are getting screwed out of contracts because of the fact that it is taking too long The first part about it is just the process It’s very hard for, especially, these mid-sized companies to track what’s going on And I’m very excited to have Penny in her job to be working on those issues A lot of these companies, by the way, don’t even want to let me say their names because they’re afraid they’re going to be hurt by the bureaucrats that are working on their applications And so, there’s got to be some way to allow people to talk about these problems where they don’t get punished And the centralizing, the forms among all of the agencies of government so that it’s much simpler to get through this As we know, we have an arcane system of multiple agencies regulating, enforcing the export of controlled goods, a system that often treats a bolt fastening a seat to a fighter jet the same as it treats the whole fighter jet And so, I know the administration has made progress on simplifying it, I just think it’s a really great area, especially with some of the defense business that is on the decline, a great area for us to gain exports The letter that we’re going to be looking at today from Mr. Pedraza encouraging the administration to complete the transfer of non-military items from the U.S. munitions list to the commerce control list is important But I really think it’s just the tip of the iceberg and that there’s a lot of work that can be done Last, speeding up the process, some of one company — again, can’t say their name, in St. Paul, license approval applications taking up to 52 weeks And I think we can do better than a one-year turnaround when they are trying to compete in this increasingly competitive market as other companies in other countries are gaining on them And that would be my last note, is that I had never heard

so many companies talking about, you know, a company in Switzerland, that their government treats it a little differently so that they can then compete for some contract with an ally, but then a different one with a non-ally And it is really becoming a problem, and it’s a combination of state department rules as well as rules here And I don’t have all the solutions, but I think we need to take it on in a big way And I think it’s something where we could really make a mark in terms of beyond the big issues of the trade agreements and other things Thank you James McNerney: Oh, thank you very much, Senator, you know, for — particularly for highlighting the export control efforts And commerce has taken on a herculean task there And you’ve made it very real to us And your support’s going to be critical And thank you very much Senator Begich, do you have — do you have a comment? And welcome back Mark Begich: Thank you very much I’ll be very brief But first I want to thank you for the opportunity to be here and be part of an effort on exports Alaska is a net exporter We like to brag about it, that we export more than we import, which is good Francisco, I’m sorry you’re leaving I know you came up to Alaska We appreciate that, the work that you did to help our exporters understand what’s available Now I know you came in June, so that was a good time to come (laughter) But those that come in the winter get extra credit points (laughter) But we really do thank you because it really does make a difference That outreach from my state intrigued many of our exporters to consider other opportunities From a — and we export everything that you can imagine But we love our fish and we love to export it everywhere Another piece of the equation: We just had the China — the ambassador for China in Alaska for several days Alaskan — China is now our number one trading partner: $1.2 billion of trade They’ve gone tenfold in about 6.5 years in trade They have passed Japan for us as — used to be our number one trading partner I want to add a couple things that I just heard, and one, I want to emphasize what Senator Klobuchar talked about For Alaska, tourism is big business For this country it’s big business It’s not exporting; it’s importing cash, which we like Foreign visitors in Alaska account for 15 percent of our business They spend more time, they spend more money We like that So the Travel Promotion Act, the work on visas has been huge benefit and will continue, I think, be a huge opportunity for us Plus, as — I like to be included in the Former Mayor Club As a former mayor, you’re going to get a few of those now, which is good James McNerney: It’s great Mark Begich: One of the best things we loved about our tourism business, especially foreign travelers, was we spent time not only having them visit our city but talk about business opportunities So it really creates a dual opportunity there Another piece I’d like to just add, and Secretary Foxx, you mentioned the transportation issues Alaska is the fourth largest cargo hub in the world A lot of people don’t realize that in Anchorage UPS, FedEx, and others do a lot of business through our airports — 700 wide-body jets move out of there every single week, moving product around the globe, because it’s all about location, location, location But the bigger challenge is — and Secretary Foxx mentioned, that I hope in the longer term, we can figure out the solution We’re doing some stuff doing a subcommittee that I chair in Oceans and Commerce on port redevelopment We have to figure out, if we’re going to export more goods, we have to have ports that can actually handle in moving the products out It’s great to have air It’s great to have other types of transportation within But if we’re going to move stuff out, we have to have a much better port strategy in this country, which I think lacks a great deal On top of that, the biggest and most exciting part for Alaska, which I think for this country, and honestly, for this world, is what’s happening in the Artic The Artic is a huge future for us, not only from Alaska’s perspective but I think this country, when you think about the oil and gas explorations, Governor, you talked about it We’re very excited We — I know the folks from North Dakota like to tell us that they have surpassed us in Alaska in oil and gas You know, we like to tell them that we’ll take no time in one well, we’ll pass them radically — (laughter) — because as we look at the Artic, 26 billion barrels of oil, trillions of cubic feet of gas, enormous opportunity And when it comes to exports, Secretary, as you know, we have been exporting for 40 years So we know it We know the business, and it’s a good business for this country to be in when it comes to gas and other energy products But along with that, other countries see opportunity for transportation routes And it is smart for us, as a country, to figure out how we get to service those boats and ships that are moving fast through the Artic in the Bering Sea In the last couple of years, they have doubled the capacity of ships moving through that area Russia is not waiting around They are figuring out their port network to service these ships

that are moving through there It is in our best interest, as this country, to get that business — not let it go over to the other side of the water A lot of people talk about the southern border — to my friend down — the mayor from Arizona — but in the north, we have a 50-mile area that, between us and Russia, with a lot of ships moving through there now, and big ships And it’s in our interest — and China has figured this out They are not waiting It will cut 40 percent of their time in fuel costs by moving through that region I would like to make sure that the U.S is the company that services those ships On top of that — I’ll end on this — and that is we figure out the port issues — the other big piece that is a huge gap, and we’re now talking about it through our Oceans Committee, is the rebuilding and recapitalization of our shipping fleets, fishing fleets, and freight movers It is a huge need in this country And these — what’s so great about these facilities, they’re American built, American labor, and they pay well And so we have to figure out a strategy, and we don’t have a really good comprehensive federal government strategy on this in the sense of loan guarantees and other programs that could really put a renaissance in this area of shipbuilding in this country And any time you talk to fishing industry, and you may think it’s a small ship, but when they are building $60 to $100 million processing ships, we’d like them to build them right here in the U.S. with American labor When you talk about the freighters that are now converting some to L&G fuel source for their facilities, that’s all American jobs, American capacity But it’s also moving our goods around the globe So those are the several issues that I’m very interested in, so I’m glad to be here And to be very frank with you, I’m glad to see a mayor in the world of transportation, Secretary, for a lot of reasons (laughter) James McNerney: Well, thank you very much, Senator Appreciate the comments very much and your engagement We have Congressman Reichert I thought I saw — here he is His constituents build those wide-body planes that stop through Anchorage all the time (laughter) Dave Reichert: The birthplace of Boeing, right? Well, thank you for allowing me to speak a few minutes today And first, I want to thank Jim and Ursula for your leadership I’m actually one of the original members of the committee — of the Council I’ve missed a few meetings, but I’m glad to be back again I really want to focus on the partnership, I think, that’s developed within this group, and friendships that have been made, and mention just a few people that are not here with us today, but the great friendship that we built with Ambassador Kirk and Secretary Locke, who I’ve known for over 30 years when I was a homicide detective So I’m going to start a new club called the Former Sheriffs Club (laughter) And I think I’m the only member (laughter) But maybe it’ll grow But Gary Locke and I have been friends for a long, long time And I look forward to working with Secretary Pritzker And, you know, the ambassador — Ambassador Kirk and Wendy Cutler really were a great team And I know Wendy is still with us in a different position I look forward to working with you, Ambassador, and Barbara, and building that same partnership I’ve got great staff And I just think that there is an opportunity here We could talk about all of the differences that Congress has, between the Senate and the House, and actually, between my own party within (laughs) our conference, and get a little depressed But I think coming to a meeting like this encourages me and really makes me feel like we can get something done As Ursula said, this is a group that really is a group It really does some work So those of you who may not know about me, I look like I’ve been in Congress for 40 years — (laughter) — but I’ve only been here 8.5 I was in the Air Force, got off active duty, went into the sheriff’s office, spent 33 years there, from patrol cop to homicide cop to the sheriff I ended up here because Jennifer Dunn, my predecessor, decided to retire So politics was not in the playbook I bring, I think, a sort of a Joe Friday, just-the-facts-ma’am sort of an approach — (laughter) — to Congress Common sense and logic is really cops are all about And that’s what I think this committee is about In Washington State, I — Ways and Means is the committee that most of the members of our delegation strive to be on

I was fortunate enough to join that committee five years ago, 4.5 years ago I am on, obviously, the trade subcommittee and I would like to think I’m one of the leaders there I started the chorus trade working group back when we were working on chorus I also chair the Human Resources Subcommittee on the Ways and Means committee Currently we’re involved in tax reform discussions, and here’s another bright light I think that we can all at least look to When you have Chairman Baucus and Chairman Camp working together, the Senate and the House working together, talking about tax reform, I think it gives us all a lot of hope We know tax reform plays in heavily to creating jobs, and actually helps in our effort in doubling exports So, I’m engaged in that effort very, very thoroughly So a little bit about Washington state We have — we’re the most trade-dependent state in the country Forty percent of our jobs depend upon trade What comes in the state of Washington actually we only keep 30 percent of what arrives in our port Seventy percent goes across the country to the rest of the nation So we call ourselves the Port of Chicago sometimes The importance of trade now for me in my district, from Microsoft on the west side of the mountains to now apple growers, pear growers, and cherry growers, you can see the variety of products in Washington state, and how important it is for us to be a part of the TPP negotiations and how key that is to Washington state’s economic growth So now we have started, and I am the co-chair of, and the — make this announcement We’re going to roll this out next week, but we started the Friends of TPP That will come out next week And then another bipartisan effort, so another bright light to look at, Ron Kind, myself, Charles Boustany, and Mr. Meeks will be the four co-chairs And so that’s just a secret that I share with you today in this room (laughter) Right So, on the way it’ll be out So, we’ll roll that out next week, but we’re excited about that But I agree with what the ambassador said, and I’ll wrap my comments up We can talk about TPP We can talk about TTIP and TISA, but really the important thing here is the Trade Promotion Authority We have got to get this done And I just want to offer my full assistance to you, Mr. Ambassador, and everyone in this room who will be promoting TPA in any way that I can help Please call upon me I would be happy to help in any way that I can Sometimes the sheriff has some interesting ways of convincing people (laughter) That was a joke, everybody (laughter) Anyway, thank you all so much for the opportunity to share a few thoughts, and for being a part of this effort I appreciate it Thank you James McNerney: Thanks very much, Congressman Reichart The — but the title was cool, Sheriff of King County (laughter) That’s what he was (laughter) James McNerney: We are very fortunate to have Jason Furman with us today, the new chair of the Council of Economic Advisors Give us a little economic report if you would, please Jason Furman: Sure Thanks so much, Jim and Ursula, and I’ve watched the work of this council for years and glad to be here participating today I want to talk briefly about exports and where they stand in the economy today, and then talk about three big trends that have an impact, not just on our domestic economy, but also very much on our exports. U.S exports set another record in 2012 reaching $2.2 trillion They rose to 13.9 percent of GDP, which ties the record set in 2011 And you’ve seen further increases into 2013 with further inflation adjusted records If you look over the course of the whole economic recovery, you have seen exports up 30 percent That compares to the 26 percent rate set in the previous recovery But that growth hasn’t been even If you look at the first three years of the economic recovery, exports were up, real exports were up at an 8 percent annual rate, which was faster than just about any other major component of GDP over that three-year period But over the last 12 months, that growth rate of exports has slowed to 2 percent, and that slowdown is an important

reminder that our fortunes in part depend on the economic strength of the rest of the world And we saw a significant global economic slowdown in 2012 You’re seeing that start to mend with real GDP growth in the rest of the world at about a 2 percent annual rate in the second quarter That’s faster than the first quarter, faster than last year, although still slower than what it was historically And you see the pattern in terms of where our exports are going Exports to Europe, for example, have rebounded to their pre-Eurozone crisis highs as the Eurozone has recovered — started to recover after six quarters of negative growth, but exports to China are flattening, although some of the most recent data from China is a little bit more encouraging I wanted to shift gears because I think there’s a lot of things we can do to promote exports Some of them, you know, might be small or medium things that the agencies, the governors, mayors, companies around this table can do, but a couple of them are three very large forces that we often talk about in the domestic economy that actually have disproportionate impacts on exports as well The first of those is the dramatic slowdown in health costs It’s not probably the main topic on the agenda of most meetings of the PEC We’ve gotten some great data on that, most recently yesterday, that inflation adjusted health spending has grown at a 2 percent annual rate since 2010, the lowest rate recorded in 50 years You’ve seen employer premiums growing at 2.3 percent, which is one-third the rate observed in the early 2000s The reason that matters is because while economists think all these savings in the long-run are passed on to families in the short- and medium-run, they reduce compensation costs in part for employers and that means more job growth And that matters disproportionately in export-oriented industries Health costs are 10 percent of compensation in manufacturing as compared to 7 percent in services, and within services health costs are higher in our service exporters than they are in, for example, the retail sector, which is non-exporting The second trend is the dramatic increase in oil and gas production due in large parts to techniques to extract oil and gas from shale Crude oil production has grown each year the President’s been in office to its highest level in 17, years in 2012, and over the last four years domestic oil supply growth has accounted for over one-third of global oil production growth The United States is now nearing the point where our domestic production of oil will exceed our imports on a sustained basis Again, matters a lot for trade The real inflation-adjusted trade deficit in petroleum products fell to a record monthly low in June Through the first seven months of 2013, the petroleum deficit is on pace to set a new annual low after adjusting for price changes down to 24 percent of our overall trade deficit from the 40 percent that it was as recently as 2009 The third major development, again, which is normally thought of through a domestic prism, but has a significant impact on our exports, is our fiscal situation We’ve seen a very rapid reduction in our deficit, down 6 percentage points in the last four years That’s the fastest pace we’ve ever had in this country with the exception of the demobilization from World War II Remarkably, half of that reduction was just in the last year alone And the fact that the American economy has continued to grow in that last year is a testament to the fact that the private sector, including exports, continues to lead the recovery There’s a basic fact that every economist understand and no economist, except perhaps Lael, has ever figured out how to explain — (laughter) — which is that when you bring your deficit down you increase your net national savings That reduces the amount you need to borrow from abroad, and the flip side of that is improved net exports In terms of the outlook for the economy, if we can handle some of the fiscal issues that Senator Klobuchar spoke to earlier, we’ll be well positioned to do no harm to the economy over the next year But our aspiration should be more than just to do no harm The President’s talked about a grand bargain for jobs that would provide additional impetus for job creation in the short- and long-run through measures like business tax reform, adjustments in infrastructure, which a lot around the table have talked about manufacturing and training; and furthermore, that could be done in conjunction with additional deficit reduction over the medium- and long-run So, just in conclusion, American businesses have added jobs

for 42 straight months Our economy has grown for four straight years Exports have played a key role in that, but with an unemployment rate at 7.3 percent, obviously substantially more work needs to be done and it needs to be done on the big things like health, energy, and our fiscal situation, and then the small things like impediments to a small business, exporting, or what we do with, you know, each and every one of the trade negotiations we’re undertaking James McNerney: Well, thank you very much for the report, Chairman Furman I think there’s fewer and fewer constraints for the kind of growth that we’re pushing for here, and in fact, we’re glad to see that we’re playing a little bit of a role in helping the situation The energy report was particularly encouraging So thank you very much for the report I think Gene Sperling, would you care to make some comments? Gene Sperling: Sure I may need a microphone James McNerney: Another regular (laughter) Gene Sperling: So, I have been privileged to be a regular for the last three years, and I apologize if some people were at the business roundtable yesterday, because a couple of points I’ll repeat, but I’ll repeat quickly First of all, this may be my last one, because I’m leaving on January 1, but I just want to make a couple of points I did yesterday I think you all know my replacement, Jeff Zients We worked with him for four years He is as excellent and impressive and just kind of a person — a kind person as you will ever meet And so, you know, he’s just extraordinary And I also said yesterday that I’d never in 13 years seen somebody come into the job of Secretary of Commerce with the just take-charge action that Penny Pritzker had, and I mean, you know, right now people looking for jobs, I’m saying you want to be in commerce, because this is a take-charge, get-things-done place And that Mike Froman, you know, I wonder if there’s ever been somebody who comes in with both the expertise, four years, and then the personal relationship with the President that he has So I think in terms of your export leadership, I think you have just a remarkable team I’d also say the person replacing Mike, Caroline Atkinson, and as well as Lael Brainard, I mean, they have just been the superstars, maybe a little behind the scenes to the public, but not to you all So, this is an extremely strong export team you have, as well as the other cabinet secretaries But I really just wanted to point that out And I’ll just say very quickly a few domestic things that are absolutely related to the exports Number one, the President really believes part of exporting is making the case that there is a better economic case to locate in the United States now than there has been in 25, 30 years And so as we are doing export, we also have an administration Presidentially led effort on there, and that’s going to include the select USA, the first conference We’re working on reforms Penny, that is one of the things she is leading She’s is hosting October 31 We also are stressing our manufacturing, particularly advanced manufacturing We will announce in a period of time that we’ll be keeping our advanced manufacturing partnership going Andrew Liveris has played a real leadership role and will continue to do so there, but we also have the National Manufacturing Innovation Institutes, which is an administration-wide effort with the secretary of energy, secretary of defense, NSF, others coming in, but we have a partnership in the White House and secretary of commerce in coordinating that We already have a quarter billion dollars for partnerships with existing funds as one of the ways the President is making us make progress whether we have new legislation or not Secondly, another thing that Secretary Perez and Secretary Pritzker and National Economic Council and team are working on is to really develop a core set of private sector demand-driven training principles We’d like your help with that We all hear from you that locating here, exporting here means meeting those jobs and, you know, secretary — both the secretaries, Perez and Pritzker, are committed to working with the White House, Cecilia Munoz and I on this And I think having something we all bought in on would be a very strong way on reforming our agenda And then my last thing I’ll just say, and it goes to the mayor’s point and what a lot of you have said, is we have an opportunity on corporate tax reform This President put forward what he called a grand bargain on jobs, a chance — always looking for a way that even with the difficulties and occasional dysfunctionalities in Washington to bring us together And what he suggested was that we could do corporate tax reform together with infrastructure This is exactly what many of you have talked about as being so good for the economy, so good for exports Tax reform has one-time savings that could go to infrastructure

and then still the long-term savings you would use in a revenue-neutral way to lower the corporate tax rate, but you would do that with using the one-time savings to address many a things the mayor just talked about I think this is the type of thing that has real possibilities, be good for our economy, good for growth, could bring people together, and obviously a win for our exports So thank you very much James McNerney: Gene, thank you very much I mean, you were lauding a number of other people, but on the occasion of your departure, I think I speak for everybody in this room, your service to this country and this government and other governments along the way, has just been exemplary and your leadership will really be missed So, thanks for everything Gene Sperling: Well, thank you (applause) James McNerney: Caroline Caroline Atkinson, assistant President for International Economic Affairs and deputy national security — long — you have the longest title in the room (laughter) So, anyway It’s good — you have big shoes to fill, but it’s great to have you here and we would be glad to hear your comments Caroline Atkinson: Thanks very much I thought I’d just speak briefly about the global framework for, as Jason mentioned, what happens elsewhere matters a lot for our exports We can do a lot of things, as Gene outlined, to make our industries better and better able to take advantage of opportunities, but we also need the rest of the world to provide those opportunities And I’ve just come back — we’ve just come back from the G20 meetings in Russia where the countries that account for 80 percent of global GDP all meet the major economies, and over the past five years — they first met five years ago at the height of the crisis at a leader level, and over the past five years they’ve actually achieved a lot First of all — and most of these gains, I think, have been led by the U.S., and I’m not boasting about myself, I’m boasting about my predecessor, Mike Froman, and Gene Sperling, and obviously, most importantly, the President himself With U.S. leadership, countries rallied to put in place economic policies that would stem the financial crisis, strengthen their banking system, build up — provide some temporary support to their economies, and importantly for this audience, there was a joint commitment to resist the protectionism that had been such a multiplier of the negative economics of the great depression, which was what leaders were committed to try to avoid Over the past five years, this has worked Jason pointed to some very good numbers that we have had of exports and global growth, but he also pointed to the fact that in 2012 there was a bit of a setback, and that was mainly coming from the slowdown that was experienced in Europe We have now moved to a better place I think Europe is beginning to come out of recession, but you can see in the G20 that the old debates about should we go for austerity, should we go for growth have ended All of the leaders have united around the view that growth and jobs are the most important This is a message that the President has made very strongly He got very involved discussing the European crisis with European leaders It’s a message that Lael and others in the administration have made over and over again about the importance for all of us around the world, but especially for us obviously worrying about the U.S., that you need to have a strong growing economy as the backdrop for declining deficits and a sustainable path for fiscal policy, and the real focus — what leaders need to and want to focus on is growth and jobs We have also made a strong push for not just to avoid protectionism, but to make progress in opening up the world’s markets We have managed to shift to a more positive tone in the multilateral trade negotiations, and we’re hopeful that there will be, and we had strong statements of political will, to make the next round of negotiations in December in Bali a success But part of that has also come from, again, the U.S. effort, championed by Ambassador Froman, to start working in a really serious way on high-standard ambitious trade agreements with the rapidly-growing Asian partners, and then also with our biggest — one of our biggest trading partners — or economic partners with the European Union

And we’ve already noticed in countries that have previously been unwilling to move to open up and have productive discussions with us about their barriers to our exports to their countries, that they’re taking not of these big initiatives and are interested in perhaps joining or figuring out how to become a part bigger agenda I think that is a huge win going forward And the last point I’d make is just picking up on Gene’s point about infrastructure investment That is hugely important here but it’s also hugely important around the world And in the G20, the President laid out looking ahead to next year with — when Australia will be chairing, that we can build on some of the private-public partnerships like Empower Africa We can build on our expertise and build on the knowledge countries need to spark investments but the private sector needs to finance and carry them out And this is a global message and it’s a message where U.S. firms stand a huge amount to gain as these markets and developments occur Thank you very much James McNerney: Well, thank you And welcome to the PEC And I appreciate your remarks Listen, I’ve just done a time check here, and as Marilyn and I say in the aerospace world, we’re running out of air, speed, and altitude here (laughter) So we — that’s not good That’s not good I think we have Jeanne Hulit of the Small Business Administration, Lael Brainard, Undersecretary Treasurer already mentioned, Fred Hochberg of XM, and Elizabeth Littlefield of OPIC, and Brian Deese of OMB I — we are not going to have time for your comments this morning, unfortunately We will make you first up at the next meeting The President’s arrival is imminent and we’ve got to figure out a way to approve these eight letters (laughter) Now, those of you presenting the eight letters, I think we trust you, okay? (laughter) All of us have read the letters They’ve been referred to by many of the people around the table and sponsored by many — actually, congressmen, senators, and cabinet officials So, I mean, these letters, even though the source is objective and public-private partnership, I think we’ve all had a chance to look at them And what I would suggest is, save any impassioned disagreement — I will assume broad support and ask for — just ask for, I guess, without objection approval of the eight letters that will be sent to the President And so, we can then maximize the time when the President arrives to hear his remarks as well as some back-and-forth And I know Valerie has mentioned he’d like to meet most of you, particularly the new folks And so, that’s the time I’d like to maximize rather than the administratively intensive approval of some of the letters that we’re going to change probably, in any case, so — (laughter) — without objection — and I apologize to the presenters Bob, you came here from Los Angeles Well, Andrew’s always here, so — (laughter) Ursula was prepared and we had a number of others — Mary And so, I apologize, so — but why don’t we, in the interest of the broader mission of the PEC and having the President with us today — without objection — Male Speaker: So moved Female Speaker: Second James McNerney: All in favor? Multiple Speakers: Aye James McNerney: Thank you very much So, our next — (applause) Okay All right, so let me just also mention when our next meeting is Let me — let me just — it may be a little chaotic at the end, so next year’s — it may be a little chaotic at the end, so just — this will come out — but just, if you want to make a note, June 19th and September 18th are the two dates we’re trying to set in stone for next year I know Ursula, in her role as Vice Chair, with Secretary Pritzker are look are at a mission I think Brazil is the working plan I think there’s broad support in this group for a Brazil outreach

But I think we need the secretary’s input before we finally decide on that But that is something where Ursula, I think, would encourage participation from anybody around the room Date not set yet We’re working it We need Penny’s — we need Penny’s approval so we’ll work that with her Penny, do you have any comments before we, you know, before the President comes? You know, it’s — Penny Pritzker: We’ve just got a few minutes James McNerney: Yeah, we have a few minutes and then maybe Lael Brainard She could offer a comment if she’d like Penny Pritzker: You know, since I had a chance to make comments, I’ll just again say thank you to all of you and for the work you’ve done and the work you will do over the next year We will look at trying to — I know folks’ schedules are very challenging And so, if we’re going to try and do a trip we will try to get something on the calendar ASAP so that, you know, we can do the — not just do the planning but know that — who will be able to attend And maybe it will be an opportunity for those who haven’t spoken to have a chance to speak, if that makes sense James McNerney: Okay All right Yeah, why don’t we — fair enough Realize how this is going to go This all stops the minute a certain individual — a certain individual walks through the door, usually comes right through here So Lael, Undersecretary of the Treasury, a comment we’d love to hear Leal Brainard: Wow, I really appreciate my particular spot in the speakers lineup here (laughter) I’m going to keep my eye on that door Male Speaker: Lael, during all of the budget discussions, I had this and you learn to stop mid-sentence (laughter) Lael Brainard: So let me just do a quick scan of the global economy since this group last met And as you know, there’s been quite a few shifts There’s still, I think, if anything better prospects than ever for U.S. exporters, U.S workers to be taking advantage of growth abroad But there have been some big changes in terms of investor expectations And of course, the biggest one is that the U.S. is now garnering tremendous attention all around the world as a very attractive destination for investment and for exports And that has been a very noticeable shift And I think that has, if anything, only intensified over the last few months Your efforts are clearly showing a lot of positive momentum I think the greatest risk that we face right now, which was referred to earlier, is the risk of self-inflicted wounds And it’s so critically important that the U.S. shows that it really is able to continue to navigate forward The tail risk has receded, I think, very substantially in Europe But we are looking at prospects of slow growth, protracted stagnation potentially And I think that is the message that they need to hear from us consistently They’ve got to put a much greater focus on demand growth And the TTIP, I think, becomes all the more important in that kind of an environment Japan also has taken some bold steps to restart growth that weren’t anticipated, even six or nine months ago We’re starting to see some really positive signs there, but of course, for us what’s important is that we see those taking place through domestic demand and not through a weaker currency and the export channel And so, we’re going to look carefully at that And of course, the kinds of reforms that are still to come in Japan are the same kinds of reforms that Mike and others are pushing through the TPP The same time we’ve seen a reassessment of emerging markets to some degree after a long period where that was the, sort of, source of greatest interest in the global economy And that is led by China China is going to have to, over the next period of time, fundamentally reorient its economy to its consumer and away from very resource-intensive exports That’s good for our companies There’s renewed, I think, recognition that they need to up their game in terms of intellectual property and the openness of the investment environment in order to sustain their growth and move to higher value growth And that, I think, is responsive to some of the concerns that we face there We saw that in the President’s discussions just in St. Petersburg, as Caroline noted But what is so important, as that shift takes place, I think it puts the U.S. back at the center, is to consolidate that through the TPP, which really puts the U.S back at the center of gravity in the Asia-Pacific region and makes us the standard setter And so that’s why that initiative really is critically important to us There have been some negative spillovers in the region, obviously Indonesia, and then more broadly, Brazil, Latin America Places that have depended a lot on exports to China of commodities now have to go back and look seriously at their domestic reform agendas

And, of course, these are very exciting markets for Americans But I think the message right now is that they need to do more in terms of attracting U.S investment, do more on their policy reforms to make sure that we realize those opportunities And the last thing I would simply say is, you know, don’t forget about Africa We have 13 countries in Africa growing at greater than 7 percent of GDP over the last few years As Mike was mentioning earlier, AGOA and Power Africa — we’re trying to create platforms that make it easier for U.S. companies to participate in what could be very exciting growth in the years ahead And I think it’s important for us, but also important for them, that we stay engaged Thanks James McNerney: Yeah, thank you very much And, listen, under the heading of — well, first of all, the meeting will be adjourned when the President leaves, okay? So, we’ve covered that (laughter) The — now, the opportunity for me to make a protocol mistake is huge (laughter) So, what I’m going to do is just go down this list, okay? And so, Jeanne, would you like to — would you like to make a comment? Actually, Jeanne Hulit is who I wanted to make comment Over here, yeah Yeah, sorry, Gene Yeah, I — (laughter) — I know, I was — (laughter) That’s called a head fake (laughter) Jeanne Hulit: It’s a double-Jeanne team James McNerney: Yeah Jeanne Hulit: So, thank you, Mr. Chairman I’m especially honored to address you today as the SBA’s acting administrator, particularly because I began my career in trade policy 30 years ago here in Washington, D.C., and subsequently spent much of my career supporting small business exporters in my home state of Maine So I’m well aware that small businesses account for 98 percent of U.S. exports, but only represent 30 percent — 34 percent of export revenues And as the Governor adequate — accurately pointed out, there’s more that we can do Under the leadership of Karen Mills, the SBA set and exceeded many of its goals for increasing exports by small- and medium-sized firms, including our STEP Grant Program, and we’re continuing to do great things to implement the recommendations of the Export Promotion Cabinet This year, we launched the pilot of the global business solutions, a new approach to bundling federal government trade finance products and services from SBA, Ex-Im Bank, Commerce, USDA, and others in order to make them more accessible to our lenders and our exporters Additionally, we began in the fall of 2011 our Small Business Development-centered Network training of our counselors to become international trade-competent and to be stronger resources to exporters and their communities across the country To date, we’ve trained more than 320 counselors, collectively supporting 1.5 billion in export sales in 2012, and we’re on target to exceed 2 billion this year And in partnership with the Department of Commerce, the SBA’s 68 district offices are working with state and local trade resources to create export outreach teams to collectively serve the regional trade ecosystems And importantly, this fall we teamed with the USTR and the International Trade Commission to give small business exporters a voice in the transatlantic trade and investment partnership negotiations This month, the ITC will hold over 20 export roundtables nationwide to give small business owners an opportunity to connect with officials on the difficulties that they face exporting to Europe This feedback will inform a report to the USTR in January and in time for the next round of negotiations This effort represents an unprecedented level of exposure for small business exporters in a major free trade agreement negotiation We’ll continue to advocate for small businesses And I do want to point out that I was in El Paso, Texas yesterday, and had the opportunity to hear from small businesses about the economic imperative of immigration reform Again, talking about the flow of goods and services across the border to Mexico, and retaining and attracting talented students in their university system So that’s also part of our export opportunity So thank you very much for letting me speak James McNerney: Jeanne, thank you very much, and welcome to the group Appreciate that Jeanne Hulit: Appreciate it, thank you James McNerney: Now, Gene Hale — (laughter) — you had offered to make a comment in support And so, since you’re leading our small business outreach initiative Gene Hale: Thank you, Mr. Chairman Appreciate that Jeanne, you’re welcome I just wanted to take a moment to say that as a result of all the roundtables that we’ve done over the last year in different parts of the country and some of the recommendations that we’ve brought back, we’re just so pleased on our committee that the SBA, under the leadership, at that point in time, by Dario Gomez — I mean, really getting those programs in place has increased the educational process for small businesses trying to figure out how to navigate this system So I just want to give that shout out to you guys as well And also, the Department of Commerce, with the full implementation of the has really been wonderful

I mean, Francisco, you’ve — you guys been on the case, so thank you very much Our next step is to talk about harmonization of the agencies, because there seem to be a disconnect in terms of the definition of a small business So, I’m meeting with some people from Valerie’s office to have a meeting and to talk about how to get the agencies synchronized and making it a little bit more easier for small businesses to navigate that system as well Thank you James McNerney: Gene, thank you very much The President, I’m told, is on his way, and so I’m just — I’m going to keep going down the list So, the next person who has volunteered to be interrupted in mid-sentence is Fred Hochberg Fred (laughter) Fred Hochberg: I’ll talk very fast Thank you Our real focus of Ex-Im, as at many agencies, is really about jobs Year to date, we have supported, based on Bureau of Labor Statistics, about 200,000 jobs Since the start of the NEI, Ex-Im supported exports of — supported about 1.2 million jobs in that time period The good news is our economy is also getting more efficient That’s good news and makes us more competitive The challenge, that is — in some ways, each extra billion dollars of exports is not — is actually generating a smaller number of jobs Long-term, that’s very good Place like aerospace, automobiles, and so forth are getting much more efficient, and, therefore, can sell better on the global market Our volume will be down a little bit this year The positive part of that news is that commercial financing is becoming more available to exporters large and small Aircraft, for example; we’re finding commercial banks willing, once again, to make loans to support the sale of commercial aircrafts, which is a good sign We’re not looking to just increase our authorizations every year; we’re looking to make sure that exports have the financing to get out the door So those are all very good signs And on the national export initiative, about half the states are either — have already doubled exports, or on track to double exports We’ve still got another half to go; we still have time to go But this is — there are a number of very bright spots in the NEI A couple of just key transactions, just to be emblematic The oil company in Mexico, Pemex, is a big buyer of the United States We just did a 1.5 billion dollar loan Exports from Governor Fallin’s state has been very key, as well as Louisiana and Texas Lockheed — we’ve financed the first commercial satellite of Lockheed to Australia And this year, we have financed 60 percent of all commercial satellites that are exported with finance to Ex-Im Bank So, that has been a key growth area in satellites And Boeing is also one of those There are four major satellite companies And in the aircraft space, I’m not going to talk about Boeing I’m going to talk about Thrush They make crop dusters, and we’ve just financed 20 crop dusters to China This is small company in Georgia There are other competitors; company called Air Tractor We sold some farm equipment to the same farm in China, and the farm is the size of the state of Connecticut (laughter) So we’ve sold them 20 We do believe we can probably finance a lot more since it’s the size of the state of Connecticut Lastly, I’m feeling a little left out because we don’t have a letter about Ex-Im Bank However, our authorization will expire — James McNerney: Coming up, coming up, yeah Fred Hochberg: — in one year on September 30th, 2014, is the — regrettably, the expiration of our charter We’ll be working very — we’ve already started work on our charter reauthorization This is something no other country, no other country does Every other country puts more money into their export support No other country is having a debate whether they should have an export credit agency So, we will be looking to work with people in this room and around the table, both in the government and private sector, to get support for our reauthorization for next year Thank you James McNerney: Thanks, Fred We have supported you in the past, and we’ll support you in the future And you didn’t tell me about those other people you financed (laughter) Fred Hochberg: They’re very small planes James McNerney: Elizabeth Littlefield, OPIC That’s — where is she? There she is There she is Yeah Give it a shot Elizabeth Littlefield: Yeah, I’ll speak quickly And since I — my Director Zak is probably not going to get a chance to speak, too, I would just say that the good news is that collaboration is up really very strongly among the trade and investment agencies of the U.S. Government We’re actively referring business to one another And that’s it (laughter) James McNerney: Welcome, good to have you here The President: Everybody, please, have a seat Well, it is good to see all of you

I know we’ve got a few new members — in fact, some folks that were just appointed and immediately got to work And so we’re thrilled to see all of you And then there are the grizzled veterans of the Export Council — (laughter) — although you don’t look grizzled You guys look great Obviously, I want to thank Jim and Ursula at the outset for their outstanding leadership in this entire process This week marks the fifth anniversary of the collapse of Lehman Brothers and an incredible financial crisis that devastated not just the financial sector but the entire economy, and people lost jobs and homes and savings And for the last five years, we have worked our way back because of the incredible grit and resilience of the American people; because of the outstanding dynamism of our business sectors; because of, I think, some timely work on the part of this administration and other agencies to make sure that we were responsive to the immediate needs of the American people, but also looking at how we can start initiating some structural changes that are going to make a difference over the long term and rebuild our economy We’re not where we need to be yet But with 7.5 million new jobs created in the private sector, with the housing market beginning to recover, with our energy transformation continuing in a way that, I think, many people would not have anticipated 20 years ago, where we’re now at a point where domestic production is actually starting to exceed imports — across all these fronts, there are some very positive pieces of news But I tell you, one of the biggest bright spots in our economy has been exports; the fact that “Made in America” means something and has provided a boost to our domestic economy, and has reminded the world just how competitive we are This has been a top priority from the start Part of the reason we set up this Export Council was to make sure that we are in a position to meet our goal of doubling exports during the course of a fairly short period of time And we now sell more goods overseas than ever before Jason, correct me if I’m wrong, but I think our current account deficit and trade deficits have narrowed as significantly as we’ve seen in a very long time Now, part of that is because we’re importing less foreign oil and increasing domestic production, but a lot of it is because we’re selling a lot of great products all around the world And this council has done a great job in helping to guide our policies We’ve got large businesses, we’ve got small businesses We’ve got medium-sized businesses, we’ve got services as well as manufacturers And your input has been enormously important in this entire process Part of what we’ve seen is a continued transformation in American business to become more competitive and more productive And I would be remiss to say, since it’s in the news quite a bit, to note that one of the reasons our businesses are more competitive is because health care costs have actually stabilized relative to what we had been seeing in previous years Just an interesting statistic here for folks who may be interested (laughter) Thanks in part to the Affordable Care Act, also known as Obamacare — (laughter) — the cost of health care is now growing at the slowest rate in 50 years Employer-based health care costs are growing at about one-third of the rate of a decade ago And just yesterday, CMS estimated that health care spending grew at its second-slowest rate ever in 2012; will grow at its third-slowest rate ever in 2013; grew at its slowest rate in 2011 So the three years since Obamacare passed, we’ve seen the slowest growth in health care costs on record Now, I think this is critically important to recognize because one of the huge competitive disadvantages that our

businesses have had is that we — American businesses oftentimes are shouldering health care costs that their competitors are not, because they’ve had a more efficient, more effective system And so for us — and when we passed the Affordable Care Act, by the way, there were all kind of arguments about how all the cost-savings weren’t very meaningful and weren’t going to do a lot, and we weren’t really bending the cost curve And well, it turns out actually a lot of what we’ve done is starting to bear real fruit, and it has an impact on the bottom lines of American businesses as well as the American people So if the current trends hold, and all estimates are that, in fact, they will — this is not just a byproduct of or hangover from the recession — we’re going to see a continuing slowing of increases in health care costs That’s going to boost our exports Now, we can still do more when it comes to exports, and thanks in part to new trade deals that I’ve signed as well as obviously really great products and services that you’ve all designed, America now exports more to the rest of the world than ever before We’re on track to export even more this year Last year, $1 billion in exports supported nearly 50,000 jobs — or 5,000 jobs in the United States So for every billion dollars that we sell, that’s 5,000 new jobs right here in the United States And so we’re really focused on how do we keep that momentum going Our new Trade Rep, our new Ambassador, Michael Froman, who many of you have had a chance to work with when he was in the White House, is in the process of trying to complete negotiations around a Trans-Pacific Partnership You’re talking about the largest, most dynamic, fastest-growing market in the world And because of some incredibly hard work by Michael and the previous Trade Representative, Ron Kirk, we are very far along in trying to get that deal done — raising standards; opening up markets that previously have been closed; getting the kinds of protections, like IPR protections, that are so important to American businesses since we typically are the best innovators; making sure that services are allowed to compete in many of these markets, because we do services better than anybody else and those are markets that oftentimes are the most parochial, most encumbered by regulation and have most frequently been closed So we’re going to be pushing ahead not only on the Trans-Pacific Partnership, but we also have now our Transatlantic effort, where we can see if we can enhance what is already robust trade with Europe It amounts to the largest trading relationship in the world by far, and we think we can do even better And so we’re going to be moving on that front as well We’re going to need trade promotion authority through Congress And this is an area where, so far at least, Mitch McConnell says he’s for it, and that’s good And so we may be able to get some good bipartisan support to get that done But let me just make a couple of closing comments about how important this Export Council has been One thing that I think a lot of people aren’t aware of, at least until they get involved in policymaking around exports, is tourism is an export When foreign visitors come here and spend money, that is tallied as a U.S export And thanks to people like Bob Iger at Walt Disney, and others, we have made enormous progress over the last several years in boosting tourism in the United States, making it easier for foreign visitors to get visas, making it easier for them to come here and enjoy the incredible attractions that we have here in the United States That’s making a big difference A lot of the ideas about how we could do that were generated from initially these efforts So I use that as an example just to say this is not just a bunch of show horses here; these are some work horses And I believe it’s fair to say — and I think Jim and Ursula will confirm — that if any of you have good ideas about how

we can further promote exports, put them on the table You will find an administration that is ready and willing to put their shoulder behind the wheel to actually get it done And I know that our new Secretary of Commerce, Penny Pritzker, who is coming directly from the business world, understands how important it is for us to be able to execute and not just generate a bunch of white papers that get filed off in some dusty file somewhere We want to make sure that we’re moving on all fronts very aggressively So with that, I just want to say how much I appreciate all your participation I want to make a special note to some of the small businesses that are represented here, because what we’ve seen is that when small- and medium-sized businesses can cut through the red tape and understand how to export, actually they can compete pretty well And that’s an area where we can make significant progress Obviously, big companies like Xerox or Boeing, we want to keep on growing them because small businesses are up and down the supply chain, and when we sell a bunch of airplanes, a lot of small businesses and medium-sized businesses are benefiting from that as well But I am very enthusiastic about this I think Jim, at least, will confirm that I’m happy to go out and make sales I’m expecting a gold watch — (laughter) — from Boeing at the end of my presidency, because I know that I’m on the list of top salesmen at Boeing And that applies to all of you And I also noticed that we’ve got some wonderful elected officials here, folks like Governor Fallin Part of what we want to do is also coordinate state and federal and local efforts, because right now our competitors — the Germanys, a lot of the European countries — they have a very tight, very aggressive, very well-coordinated effort to make sales around the world Sometimes, because we’re so big and, frankly, we’ve been such a dominant economy for a long time, that our sales pitches and efforts have been a little more scattered and a little more diffuse So one of the functions that this Export Council can serve is as a clearinghouse and a coordinating mechanism to make sure that if Oklahoma is trying to pitch something or help one of their businesses that they are in touch with federal counterparts and they can do a much more effective job So what I think we’re going to do now is we’re going to clear out the press I’m going to have a chance to come around and say hello to everybody and say thank you And then the conversation will continue