Smaller Companies Grab Bigger Share of Surging U.S. Exports
American businesses without international subsidiaries accounted for 46 percent of sales abroad in 2005, up from 38 percent in 1999, according to a Commerce Department analysis published last week.
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Lower tariffs as a result of free-trade agreements have also helped. Since the North American Free Trade Agreement with Canada and Mexico in 1993, the U.S. has entered into accords with Chile and Central America. Treaties with Peru, Colombia, Panama and South Korea are currently awaiting congressional approval. “The free-trade agreements are really an important element for the smaller companies because tariffs and non-tariff barriers pose less difficulties for large multinationals,” the U.S. Chamber’s Murphy said. “For smaller enterprises, the tariffs can be a deal-breaker.”
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A European customer eyeing an American product priced at $100, would now need to come up with only about 68 euros to make the purchase, compared with 99 euros five years ago.
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That may be one reason spending by factories on new equipment rose for a fourth straight year in 2006, according to the Commerce Department’s Annual Survey of Manufacturers. The last time that occurred was from 1994 to 1998.
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Lower tariffs as a result of free-trade agreements have also helped. Since the North American Free Trade Agreement with Canada and Mexico in 1993, the U.S. has entered into accords with Chile and Central America. Treaties with Peru, Colombia, Panama and South Korea are currently awaiting congressional approval. “The free-trade agreements are really an important element for the smaller companies because tariffs and non-tariff barriers pose less difficulties for large multinationals,” the U.S. Chamber’s Murphy said. “For smaller enterprises, the tariffs can be a deal-breaker.”
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A European customer eyeing an American product priced at $100, would now need to come up with only about 68 euros to make the purchase, compared with 99 euros five years ago.
…
That may be one reason spending by factories on new equipment rose for a fourth straight year in 2006, according to the Commerce Department’s Annual Survey of Manufacturers. The last time that occurred was from 1994 to 1998.
Interesting article. Once again I repeat my message that the end of manufacturing in the USA is greatly overstated. While surging exports are good for the economy the massive current account deficit needs to shrink a great deal before the USA can be said to have stopped living far beyond its means.
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