9/16/96 Transcript: "U.S. Trade Policy Impact on Small Business"
YBizSpot: Welcome to YOUR BUSINESS LUNCH.
Please join us daily 1-2pm Mon-Fri. Eastern Standard Time. Please
remember that Protocol is in use during this chat event. Enjoy
the show!
YBizSpot: Our topic today is: U.S Trade Policy Impact on
Small Business
YBizSpot: James Meenan (JRMeenan) is a U.S trade
representative based in suburban Washington DC and a U.S trade
advisor to the federal Department of Commerce. He advises U.S
negotiators on trade matters, as well as raises issues of
specific concern to small businesses and minority-owned firms. He
also participates in a State Department forum on electronic
commerce on the Internet.
YBizSpot: JRMeenan, if you'd like to introduce yourself,
we'll start taking questions when you're ready.
JRMeenan: Thanks, U.S. trade policy has been favorable to
small business, but implementation is slow. FYI--The US Trade
Rep. has been working in the regional trade agreements (NAFTA,
APEC)... to support small business, but the actual interventions
are still being explored.
YBizSpot: JR, I've heard of NAFTA, but what is APEC?
JRMeenan: APEC is the Asia Pacific Economic Cooperation
APEC covers the free trade area of the Pacific. A similar one for
Latin America is FTAA.
YBizSpot: JR, want to expand on how the US Trade Policy
affects small businesses? What types of businesses are affected?
JRMeenan: Trade policy covered in regional or World Trade
agreements help open the door to commerce.. by working for a
better playing field for all concerned. In these regions, small
business dominate the economies.
Kjbpcorp: Thank you. My q addresses the need for the US
Gov to get involved... Whay dont we just let each business do its
own thing.. Why doe we need a policy??
JRMeenan: International governments set the ground rules
under which international business function.
YBizSpot: So ... what would happen if we *didn't* have
those ground rules?
JRMeenan: If left alone, U.S. business would find it
difficult to compete against a European firm... aligned and
supported by its government. All h--- would break out. Even with
the rules, many try to bend them for their own.. benefit. The
OECD for one set the general rules for trade in international
project finance.
TimDriver: JR-- Where do you see the greatest growth in
International Trade these days? what industries and regions?
JRMeenan: Asia and Latin America have the policies in
place and the growth is taking off!
JRMeenan: FYI--the Secretary of the USDOC will issue the
new National Export Strategy on 9/24-25 If you would like a copy
call 202-482-5455
YBizSpot: JR, you said small businesses dominate the
international economy - can you explain? Why is that?
JRMeenan: Small business make up the largest portion of
the U.S. and overseas internal economies... however they are much
less a player in international trade. So the real growth in trade
rests with small/medium business. The major issue is how best to
involve them. For example, the new U.S. Export Strategy will
focus on small business and access to trade finance. So one
vehicle, the Ex-Im Bank will have to do more to delegate
commercial banks with the authority to act on their behalf. Ex-Im
can not handle small business without help.
YBizSpot: How will they accomplish that?
JRMeenan: Ex-Im has already delegated authority, on a
pilot basis, with a bank in Boston--others should push for the
same authority. Also, Rep. Toby Roth has been leading the effort
for the Bill "Exports, Jobs and Growth Act" the bill
would also push the Administration to do more for small business,
i.e. create a.. business center with a Internet home page
dedicated to small business. It would also push that the regional
Export Assistance Centers do more to reach out to each state.
YBizSpot: JR, what's the status of the bill? Does it look
good?
JRMeenan: Some feel that to involve small business, either
in new trade agreements or exprots, information is key.
Media3pub: If the bill passes, how will these efforts be
funded?
JRMeenan: The bill is being revised at this time, since it
ran into election year politics and the label of "Corporate
Welfare".
Media3pub: Is it "corporate welfare"?
JRMeenan: The small business provisions of the bill are
direction--unfunded--while the other sections, reauthorize OPIC,
TDA and the trade promotion functions of Commerce. It is an
Authorizing bill, Appropriations will follow. Or in some cases,
go instead of the Autho.
MSavage139: Am starting small security co. need info on
market analysis is SC area. any ideas.
JRMeenan: If SC is South Carolina, I would recommend the
local Chamber of Commerce. Most trade info questions and some
domestic can be handled by the USDOC Center at... 1-800-872-8723.
Media3pub: How might your position be effected by the
upcoming election?
JRMeenan: The trade advisory committee structure is
non-partisan and we were just reappointed for another two year
period. It also does not pay, i.e. Pro-Bono
Media3pub: Good, glad to know that!! -- except the
pro-bono part -- catch 22 -- It's amazing how there is always
plenty of work, if you can afford to do it for free:)
JRMeenan: One does for his/her country what one can.
Media3pub: Wish more people felt that way.
YBizSpot: JR, what would a small business owner wanting to
get into international trade need to know?
JRMeenan: Watch out now for the US Customs' Service new
Automated Export System... they are putting in place a system
that will require prior approval of all exports--small.. business
will be hard hit to fill all the data requirements in advance and
my find their .. shippments and those of other on board a ship
held up until the last i is dotted.
Media3pub: JR -- that would be a great article for our
paper! our circulation is now over 500,000 small businesses --
can we let them know??
JRMeenan: The fight has been going on for about a year now
and Customs is about to mandate it accross the U.S. I can provide
contact info for Media3 seperately.
Media3pub: Thanks -- I appreciate that!!
YBizSpot: JR, what can you tell us about the State Dept
forum on electronic commerce?
JRMeenan: The State Dept. forum on E-Trade has been
holding meetings around DC to explore the new introductions in
electronic commerce--internationally. One feature is the new
electronic Bill of Lading. It has also pointed out overseas legal
problems in foreign govt.
YBizSpot: Electronic Bill of Lading?
JRMeenan: So when you go online to download a new software
program--Who's laws apply when you are sent from a California
server to Australia.
YBizSpot: I see!
Media3pub: Will there be an international commission to
hash through these issues?
JRMeenan: Now in this electronic age, commerce has gone
far ahead of the prevailing paper based laws The U.S. Patent and
Trade Mark Office is taking the lead.
Media3pub: Is this the beginning of "world
government"?
JRMeenan: YES--we no longer live in just a city--cyber
space has arrive!
Media3pub: so true -- perhaps a little frightening, but
here none-the-less
JRMeenan: This will put more pressure on the international
forums, i.e. World Trade Organization and other to try and keep
up with the technology. Industry will also need cover, to protect
their patents and customers.
Media3pub: That is being made difficult -- gov't won't
allow us to scramble messages, etc. -- suggestions?
JRMeenan: Our trade advisory group has also been pushing
for a "Judge Wapner" type international court to
dispense quick justice for small/medium firms.
YBizSpot: Interesting concept....
Media3pub: Funny concept - but probaby effective
YBizSpot: Absolutely!
Media3pub: Do we get to watch the processes on TV:)
YBizSpot:
JRMeenan: The tv aspects would prove quite boring, as one
argues if the goods shipped were used or not--no Holidwood color
in that.
Media3pub: LOL -- right, tough to sell to advertisers,
huh?
JRMeenan: I dont believe scrambling messages is that
critical--closed systems or other means are available to transmit
private communications.
YBizSpot: But how secure are they, really?
Media3pub: I don't know enough about it to have an
intelligent opinion, but I do share a general sense of paranoia
about these systems and the governments ability to access our
lives
JRMeenan: More secure systems will be developed, just as
commerce demands to protect the transactions being undertaken.
Europe may be ahead of the U.S. in this area, as we continue to
debate national security concerns.
Media3pub: So why the concern about scrambling and the
refusal to allow it? Isn't that just another "more secure
system"?
JRMeenan: The old national security concerns by some. But
the Adminsitration has opened up some on the issue.
Media3pub: Another catch 22, huh?
JRMeenan: The technology is out there for secure systems.
The main question is if the U.S. is going be a leader or follow
the rest of the world.
Media3pub: Where does that issue stand now??
JRMeenan: For now the U.S. firms are the leaders--but
can't market the technology so the Europeans may win out in the
long run on secure systems. If that is the questions.
Media3pub: It is -- partly -- you're right, too big of an
issue to tackle here
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