
James A. Dorn
As the United States emerges from the worst recession since the Great Depression, trade financing is not only a vital part of the export process, but also an extremely important one to the economy. In addition, export financing can be used as a tool to boost competitiveness.
U.S. unemployment, at 9.1 percent in August, is likely to remain high for years. Economic growth projections continually seem to be revised downward. And the approval ratings for President Obama and Congress, which are at the lowest levels in memory, don’t inspire confidence or encourage business investment.
Although there are many reasons for pessimism, there is a bright spot. The United States has a tremendous advantage over other developed countries due to its population growth projections and the impact on the economy. Emerging markets, recipients of virtually all non-U.S. population growth moving forward, stand to gain even more.
Last year, over $1 million worth of goods crossed our northern border every minute of every day. And that doesn't include trade in services. As a result, Canada, with a population of 34.3 million, continues to be the United States' largest trading partner. What's more, Canada is the biggest merchandise export market for 34 American states, and the second biggest for another 11, the Canadian government says.
If imitation is the sincerest form of flattery, then the U.S.-China relationship should be brimming with good will. By that standard, 2010 was a celebration of mutual admiration and respect. As Chinese leaders were trying to cultivate an American mainstay—home-grown innovation, U.S. policymakers were singing the praises of industrial policy. In this case, only one country can benefit from emulating the other’s policies—and it’s not the United States.
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