Trade act aids Missouri's international deal-making

Missouri businesses are seeing the trade doors with other nations crack further open.

President Bush's Aug. 6 signing of the Trade Act of 2002 is expected to streamline Congressional passage of trade agreements reached between the administration and various countries.

The act covers "trade adjustment assistance, trade promotion authority (fast-track procedures), Andean trade preferences, and other trade provisions," according to the U.S. Senate's Web page.

Missouri annually exports almost $8 billion in agricultural and manufactured goods to more than 100 foreign markets, said Dan Mehan, president and chief executive officer of the Missouri Chamber of Commerce

"The simple fact is: Without this we get beat. European countries and other countries around the globe are actively engaging in international trade agreements ... We're getting boxed out of markets right now," said Mehan.

Trade agreement 101

This "legislative kind of agreement" is almost 30 years old, said Lael Brainard, the New Century Chair at the Brookings Institution in Washington, D.C.

The arrangement is between Congress and the president whereby Congress will provide expedited treatment to trade agreements if they meet certain objectives, Brainard added.

For example, when details such as negotiating objectives are disclosed, specifics of market access are defined, when labor and environmental impact issues are addressed and questions of intellectual property are examined, Congress will treat the agreement in a timely manner by adhering to specific deadlines and a no-amendments voting process, Brainard said.

Alex Budzinsky, executive vice president of home-furnishings seller Decorize.com, said renewing this "fast-track authority" is a way for the administration to accelerate trade with foreign countries.

"The whole point is they want to expedite business agreements, trade agreements and they see the best way they can do that (is) by limiting the number of people who can stick their spoon in that pot," Budzinsky said.

Facing the competition

The agreement can be viewed as a way of gaining market advantage over foreign companies that receive direct support from their governments.

"We compete against companies around the world that have good support from their governments and sometimes they see subsidies in various situations," said Terry Bushman, acting president of Paul Mueller Company's international division. The large-tank manufacturer employs about 900 people in three locations and works in about 50 countries. Its major markets are Japan, Europe and Great Britain, he added.

"Where we supply large equipment to major projects, many times we're up against those situations. So the ability of our government to act quickly and respond to international conditions I view as a plus for us being able to be effective in international markets and being able to export," Bushman added.

No panacea

Still, the new agreement will not cure all trade ills.

"The reality is far more complicated than having the passage of this trade promotion authority lead directly to new trade opening. It won't. It's just another step in the process whereby the administration goes out and negotiates agreements with countries and then needs to bring them back and win approval of Congress," Brainard said.

Successful international trade still comes down to finesse and connections. Guy Mace, owner of turbo-compressor-manufacturer Turblex Inc., said it's relatively easy to do business overseas once one knows the protocol.

"It doesn't relate to government regulations nearly as much as it does simply to how you do the business overseas. That's a learned type of endeavor," Mace said. Turblex does anywhere from 5 percent to 30 percent of its annual business in foreign markets, he added.