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A Competitive Edge
To quote US Secretary of Commerce Carlos Gutierrez, “There is no doubt that we are dealing with a global environment that is more competitive than anything that we have seen before.”
In fact, competitiveness has become the defining factor for participants in the global economy, and maintaining a competitive edge has become more critical than ever before to assure future economic success. As the barrage of media coverage on competitiveness in the global economy regularly serves to underscore, the importance of free and fair trade on a level and open international playing field cannot be overstated. Therefore, working to secure free market access is one of the most important roles that national governments can play to help individual companies meet their global challenges head on and to foster global economic growth. Suffice it to say, no country in the world stands more resolutely with the US in extolling the virtues of free, fair and open international trade than the UK.
As a consequence, it is hardly surprising that our bilateral US-UK trade and investment activities stand at the top of the ranks and have done so prominently for quite some time now. At present, the US is the top export market in the world for the UK, at a reported level of $51bn in 2005. Conversely, the UK is the number one export market in Europe for the US, at just under $39bn and with a positive growth rate over the past four years. On the investments side, the numbers are equally remarkable. UK investments in the US were an impressive $252bn in 2004, while US investments in the UK were recorded at $303bn and growing. Not surprisingly, the US accounted for 446 of the total 1,200 foreign companies that chose to invest in the UK in 2005.
The breadth of US-UK commercial relations, as substantiated by these numbers, make a strong case for the benefits of free and open trade. The history of robust trade and investment between the US and the UK has centered on a genuine acceptance of these principles. We also recognise that in a truly competitive marketplace, even strong commercial relationships such as ours can never be taken for granted. In today’s global economy, success ultimately depends upon one’s ability to sustain a competitive edge. Therefore, to maintain and improve our market share, we must constantly strive to offer the best products at increasingly competitive prices. Artificial influences on trade, such as price supports, may yield temporary market benefits, but they are not fundamentally sustainable.
“Free trade is our best hope to raise living standards around the world,” declared Secretary Gutierrez in another recent address. Thus, as members of the international community come to terms with the idea that competitiveness and economic performance are fundamentally interrelated, they better appreciate the central role of multilateral trading organisations like the World Trade Organization (WTO).
In its Doha Declaration, the WTO specifically addressed the importance of its function in sustaining active involvement of all its members in the global market. At present, WTO members are debating major issues relating to tariffs, support subsidies, and market access. Successfully unifying diverse interests in this current round of negotiations will make the difference between the status quo and a bold new commitment to the continued development of free, fair and open trade between developed and developing countries alike.
At the US Commercial Service, the trade development arm of the US Department of Commerce, we are attuned to the fact that a successful global economy requires the commitment and active participation of all nations and companies, large and small. Our specific role is helping US companies to effectively compete in the global market place by providing them with market information, counseling services, trade leads, business advocacy and assistance in finding partners in the 80 countries we operate in worldwide.
In our work with BritishAmerican Business, Her
Majesty’s government, and other private and public
sector organisations in the UK, we strive to advance
our common interest in maintaining competitiveness
in an open and transparent global market. Within
an increasingly competitive global environment, our
transatlantic commercial partnership is an important
hallmark of our “special relationship” and deserves
nothing less than our full commitment to sustain the
economic growth and prosperity of both nations.
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