VII. INTERNATIONAL ACTIVITIES RELATED TO THE NATION'S ECONOMIC INFRASTRUCTURE

Many of the Commerce programs supporting the Nation's economic infrastructure have international aspects. The major international activities are cited below, in the context of Theme I goals.

A. Implement the President's National Export Strategy in conjunction with the Trade Promotion Coordinating Committee,

B. Enforce U.S. trade laws and agreements to promote free and fair trade, and

C. Strengthen and institutionalize trade advocacy efforts, placing special emphasis on the "Big Emerging Markets" and major projects.

ITA offices in 70 countries are staffed by commercial officers and foreign service nationals who develop and analyze information on foreign markets and represent U.S. business interests abroad. ITA: (1) identifies trade opportunities for U.S. businesses and products; (2) counsels U.S. business, including sources of trade finance; (3) identifies potential overseas representatives for U.S. firms; (4) develops market research and analysis of trade policy issues; (5) advocates on behalf of U.S. company interests in major projects, procurement, and market access issues; and (6) organizes and manages U.S. trade promotion events.

ITA continues to emphasize trade with the Big Emerging Markets (BEMs) which present exceptional opportunities for U.S. exporters. Advocacy efforts (including trips by Cabinet and Sub-Cabinet officials) have been instrumental in promoting U.S. exports in the BEMs, where clear rules and bid processes are often lacking. To further our relations with the BEMs, U.S. policy makers have concluded agreements with a number of BEMs as well as the NIS to form Business Development Committees and Joint Commissions -- cornerstones of ITA's support of the Department's BEMs Initiative. At the same time, ITA can emphasize trade with the BEMs, without losing focus on mature markets -- major trade promotion initiatives aimed at increasing the number of U.S. firms exporting to traditional markets, e.g., "Showcase Europe", "Canada First", and the Trans-Atlantic Business Dialogue.

D. Restructure export controls for the twenty-first century,

E. Maintain a fully effective law enforcement program to protect U.S. national security, foreign policy, nonproliferation of dual-use commodities, counter-terrorism, nonproliferation of chemical and biological weapons, and public safety interests, and

F. Facilitate transition of defense industries.

BXA's activities are essentially international in scope, and encompass all three of these goals.

BXA has taken a lead role in increasing the effectiveness of multilateral control regimes by limiting the scope of U.S. unilateral controls, and concentrating greater attention on effective implementation/harmonization of multilateral non-proliferation control regimes. BXA represents U.S. industry in international efforts to strengthen the Biological Weapons Convention. The U.S. will play a key role in developing policy and implementation plans for the CWC treaty, especially in the area of commercial facility inspection procedures. BXA's program implementation role provides the U.S. chemical industry with a voice in the development of policies that affect that industry.

BXA's Export Enforcement function reviews export transactions to ensure the "bona fides" of end-users and end-uses. It also works cooperatively with foreign export control officials on export enforcement issues. Export Enforcement also has worked with several countries of the Former Soviet Union (FSU), Central Europe, and East Asia to implement the enforcement arms of their own export control programs. Finally, BXA has export control staff in some Central Europe and East Asia U.S. Embassies, to work with Embassy staffs and host governments on enforcement-related issues.

Export control cooperation includes technical exchanges between U.S. export control officials and their foreign counterparts. These exchanges, which take place both within the U.S. and foreign countries, cover the full range of export control infrastructure development and implementation including: legislation and regulations, licensing processing and procedures, preventive practices, industry-government relations, and systems automation and administration. The result of these activities is to establish a comprehensive and effective export control capability in each country.

BXA is participating in the development of a unified strategy to begin consultations with our allies on offsets in defense trade, as mandated the October 1996 TPCC report. BXA plays a major role in discussions to build key management infrastructure that will support both electronic commerce and public safety needs.

G. Strengthen the public's understanding of the U.S. economy and its competitive position by improving Gross Domestic Product (GDP) and other national, regional, and international economic accounts data.

BEA's participation in international standards-setting organizations helps bring uniformity and higher quality to the international statistical system, which improves the U.S. Government's ability to assess and compare economic developments. Examples of these activities are the United Nations' System of National Accounts and the International Monetary Fund's Balance of Payments Manual. With the implementation of new standards, U.S. measures of economic growth, investment, and trade will be more comparable to those in other nations and will better reflect new and rapidly growing sectors, increased globalization of production and investment, and other features of today's and tomorrow's economy.

The present Standard Industrial Classification (SIC) system -- the one on which BEA's GDP and other key accounts data are classified -- presents an outdated picture of the organization of economic activity. Work on the North American Industry Classification System (NAICS) was begun in 1992 under OMB and carried forward with our Canadian and Mexican NAFTA partners' statistical agencies. The design of the new system is now complete and it will replace the outdated SIC system in 1997. BEA will work with the Census Bureau and the Bureau of Labor Statistics to oversee the introduction of NAICS in the U.S. and the integration into the accounts of the new data collected using NAICS.

Increased integration in world markets for goods, services, and capital, in combination with major advances in computer and communications technology, have resulted in large gaps in BEA's coverage of international transactions. In recent years, BEA has been closing gaps in coverage through data exchanges with other countries' statistical agencies and with foreign central banks. Efforts to reconcile import and export statistics of other countries with our own have improved U.S. trade data.

BEA, Treasury, and the Federal Reserve System -- in cooperation with the International Monetary Fund, the Organization for Economic Cooperation and Development, the Bank for International Settlements, and the other G-7 nations -- are working to agree on common definitions to use in collecting consistent data on portfolio investments. Participating countries will modify their data collection systems to improve consistency and fill existing gaps in coverage by exchanging data with each other.

I. Stimulate the creation of private sector jobs through the growth of industry and the retention or expansion of existing businesses in economically distressed areas.

EDA's primary focus is the United States, but assistance is also provided, by legislative mandate, to the Commonwealth of Puerto Rico, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, American Samoa, Federated States of Micronesia, the Republic of the Marshall Islands, and Guam. In addition, EDA provides communities in the U.S. that seek to create export-related opportunities.

K. Provide new knowledge, analysis, and technical information which serve both to assess economic development problems and to mobilize non-Federal resources for their solutions at the local level.

Technical assistance to domestic communities has been limited primarily to export related activities. For example, EDA awarded Local Technical Assistance grants to the City of Vineland, NJ to develop a domestic and export marketing program. EDA provided assistance to TradePoint USA in Columbus, OH to establish a Central Ohio Export Development Program of on-line information and training in export management for small and medium sized businesses. EDA also helped the Atlanta Paralympic Organizing Committee forge long-term relationships between the U.S. manufacturers of assistive products and the policy and procurement decision makers in emerging international markets.

The Trade Adjustment Assistance Program helps client firms conduct international market research, comply with foreign safety and performance requirements, develop capacity to meet ISO-9000, ISO-14000, and other foreign standard requirements.

L. Improve opportunities for minority-owned businesses in major growth industries according to geographic demands, and

M. Improve the opportunity for minority-owned businesses to pursue financing.

Contributions of minority businesses toward America's competitiveness in the global marketplace are important. In improving opportunities for minority-owned businesses, MBDA seeks to assist these businesses to participate actively in the global marketplace and contribute to the U.S. competitiveness. MBDA supports this endeavor through "matchmaker" trade missions with ITA that allow minority businesses to expand their market base internationally.

N. Provide technical leadership for the Nation's measurement and standards infrastructure, and assuring the availability of needed measurement capabilities.

NIST provides leadership in harmonizing international measurements and standards to facilitate international trade. Through its measurement and standards-related services, NIST promotes market efficiencies that provide the means for assessing and demonstrating conformance and for resolving technical disputes. These efforts are especially important for international trade, where technical trade barriers have arisen.

NIST is helping to develop Mutual Recognition Agreements that specify conditions under which testing for conformance with foreign and international standards can be done within the U.S.

In 1994 NIST established a National Voluntary Conformity Assessment System Evaluation Program to evaluate and recognize U.S. testing laboratories, accreditors, certifiers, and quality assurance organizations with demonstrated competence in determining whether products satisfy foreign regulatory requirements.

NIST activities have been formalized by the passage of the National Technology Transfer and Advancement Act (PL 104-113), where Congress has directed NIST to take responsibility to provide public sector leadership in standards and conformity assessment and in working cooperatively with other government agencies and the private sector to support the creation and maintenance of a sound technical infrastructure for the U.S. NIST is in a unique position to provide coordination and policy input for standards and conformity assessment structures and activities in the U.S. and lead the development of a realistic, workable technical infrastructure to support the goal of an effective global market.

S. Help protect, promote, and expand intellectual property rights systems throughout the U.S. and abroad.

The PTO will continue to play a pivotal role in intellectual property rights policy development both at home and abroad. In cooperation with the Office of the U. S. Trade Representative, the State Department, and ITA, the PTO will participate in efforts to improve international standards for the protection of intellectual property. PTO participates actively in WIPO regarding agreements to improve protection for patents, trademarks, and copyrights. Examples of current activities include the Trademark Law Treaty, the Patent Law Treaty, the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty.

PTO will continue to collaborate with the EPO and the JPO on activities leading to enhanced dissemination of patent information, and shared information on best practices and experiences in processing patent applications and automating systems. PTO also will be working more closely with regional organizations, such as the Asia-Pacific Economic Cooperation (APEC).

U. Advocate international telecommunications policies that will help open international markets and promote the interests of the U.S.,

V. Set policies for efficiently and effectively managing the Federal use of the radio spectrum, and prepare for international radio spectrum-setting conferences of the ITU, and

W. Provide leadership in developing telecommunications policy initiatives in emerging areas of national priority.

NTIA represents the U.S. in all international frequency allocation and standards setting conferences. NTIA promotes development of the Global Information Infrastructure through reduction of regulatory barriers to trade and through bilateral and multilateral negotiations.

Through the Global Electronic Commerce program, NTIA leads discussions with our trading partners regarding the development and implementation of international privacy policies which both protect privacy and support the broadest flow of data over the Internet.

X. Promote safe navigation by revolutionizing U.S. marine and air navigation, mapping, and surveying; assist commercial shipping in moving increased cargoes safely and efficiently; and provide a precise satellite-derived reference system as the basis for the nation's geographical positioning needs.

Ninety eight percent of our international trade, valued at nearly $500 billion annually, moves through U.S. ports. Real-time water level and current information is needed for safe navigation and to permit increased exports by maximizing use of limited channel depths. Expansion of foreign markets and increased American exports are supported by assuring harbor and airport operations are safe and efficient. NOAA's international leadership in geographical spatial technology will help industry develop markets in Global Positioning equipment and Geographical Information Systems software.

Y. Provide significantly improved short-term warning and forecast products and services that enhance public safety and the economic productivity of the nation by enhancing the ability to observe, understand, and model the environment, and effectively disseminating products and services to users.

NOAA is an international leader in environmental science and technology. NOAA programs advance the interests of the U.S. meteorological, hydrological, geographic and oceanographic communities by accessing international resources and providing vital and timely data for aviation and transportation safety, as well as developing markets for weather forecast technologies and related specialized equipment, software, and systems. Through its international leadership, NOAA advances its mission in cost-effective ways.

The National Weather Service's International Activities Program advances the interests of the U.S. by improving the levels of science, technology, operations and services, which enhance short-term warning and forecast services. As an international leader in scientific research and operational weather forecasting, NOAA's Tropical Prediction Center has been designated as the World Meteorologist Organization Regional Specialized Meteorological Center for tropical storm warnings in the Atlantic and Pacific oceans. In addition, NOAA provides vital timely and accurate data for the aviation industry by supporting the satellite dissemination of the World Area Forecast System data and products.

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