THE WHITE HOUSE
Office of the Press Secretary
THE CLINTON-GORE ADMINISTRATION: STRENGTHENING MANUFACTURING FOR THE 21ST CENTURY February 5, 2000
Today, the White House announced a series of proposals that will help strengthen U.S. manufacturers, workers, and communities, and help keep manufacturing a strong and vital part of the U.S. economy in the 21st century. These initiatives were developed as part of the interagency Manufacturing Task Force announced by Vice-President Gore last summer.
The total investment in this initiative represents an increase of $386 million this year, in addition to the President's $2.86 billion increase in the "Twenty-First Century Research Fund."
PRESIDENT CLINTON'S FY 2001 BUDGET INITIATIVES
Record increases in research and development - $2.86 billion increase in "Twenty-First Century Research Fund." Many components of this will support advances in manufacturing. The $495 million nanotechnology initiative, for example, could lead to materials that are ten times stronger than steel and a fraction of the weight, and devices capable of storing the Library of Congress on a sugar cube.
Upgrading the skills of the manufacturing workforce
- $30 million in new matching grants to States for innovative
approaches designed to upgrade the skills and training of the
- More than tripling -- from $4 to $14 million - funding to strengthen the science and math preparation of technicians being educated for the high-performance workplace of advanced technologies.
Expanding Trade Promotion and Financing
- $215 million historic increase in available export financing - a
26.5 percent increase - that will generate over $3 billion in new
- $11.6 million to develop next-generation trade promotion programs to help small manufacturers find markets abroad through the Internet - an export advisor on every desktop.
Strengthening Monitoring and Enforcement of Trade Agreements
- To ensure that U.S. manufacturers and others benefit fully from
the opportunities created by our trade agreements and laws, the budget
would significantly boost funding for monitoring and enforcement of
compliance with trade agreements. Specifically, it would:
Increase by 25 percent the number of personnel (from 496 - 619) at the
Commerce Department for trade enforcement,
Double the personnel devoted to monitoring import surges and performing
Create an overseas contingent of trade experts to help monitor trade practices,
Triple personnel dedicated to ensuring China's compliance with trade obligations,
Double personnel dedicated to ensuring Japan's compliance with trade obligations,
Establish a new trade law technical assistance center to assist small businesses and unions,
Increase in Enforcement/Monitoring personnel at USTR, State, and USDA.
Expanding Adjustment Assistance for Workers and Communities - $35 million increase to create a new office to craft and coordinate Administration-wide responses and to provide recovery funds for regions impacted by trade or other severe and sudden economic distress - increasing economic adjustment by $175 million over 5 years. - $39 million increase to reform and expand trade adjustment assistance (training and extended unemployment benefits) for workers who lose their jobs due to import and shifts in production -- $459 million over 5 years.
Developing and Making Available Technologies Enable Smaller
Manufacturers to Thrive
- $20.5 million to provide technical assistance to smaller manufacturers and other businesses to overcome barriers to the use of the Internet and E-Commerce, and $4 million to accelerate the development of the technology infrastructure needed for manufactrers to conduct reliable electronic commerce.
Specific Budget Initiatives Targeted Toward Manufacturing
Investing in research and development for the 21st Century
Almost $3 billion increase in the Twenty-First Century Research Fund
Upgrading the skills of the Manufacturing Workforce
Expanding Trade Promotion and Financing
3. $215 million increase in available export financing - a 26.5 percent
- Increase funding for the Export-Import Bank to $1.026 billion - a 26.5 percent increase over FY 2000 enacted and the highest level of funding ever requested for the Bank.
- These funds are expected to generate over $3 billion in new manufacturing exports, sustaining more than 25,000 high-wage manufacturing jobs.
- The increase in funding will allow Ex-Im to absorb higher international lending costs resulting from the financial crises around the globe.
- Ex-Im will continue to put trade-financing resources in the hands of small businesses and provide the necessary stimulus for export sales in high-risk markets now recovering from the global financial crisis.
4. $11.6 million to develop next-generation trade promotion programs and
services made possible by the Internet - an export advisor on every
- The Department of Commerce will receive a $11.6 million increase to develop next-generation trade promotion programs and services made possible by the Internet.
- The initiative will broaden the exporter base of smaller manufacturers, lower barriers to exporting by streamlining the export process through an Internet-based infrastructure, and will develop and deploy Internet-based tools specifically designed to meet the needs of manufacturing exporters.
- By lowering the administrative and process barriers to exporting, the program will increase the number of smaller manufacturers that export, as well as the dollar value of exports from those firms that currently sell abroad.
Strengthening Monitoring and Enforcement of Trade Agreements
5. To ensure that U.S. manufacturers and others benefit fully from the
opportunities created by our trade agreements and laws, the budget would
significantly boost funding for monitoring and enforcement of compliance
with trade agreements would increase funding for agencies with
responsibility for trade agreement and trade law compliance ---
Department of Commerce, US Trade Representative, Department of State,
and Department of Agriculture. Specifically, it would:
- Increase by 25 percent the number of personnel at the Commerce
Department's Import Administration and Office of Market Access and
- Double the personnel devoted to monitoring import surges and performing expedited investigations,
- Create an overseas contingent of trade experts to help monitor trade practices, such as those dealing with market access, subsidies, dumping, and other unfair trade practices,
- Triple personnel dedicated to ensuring China's compliance with trade obligations,
- Double personnel dedicated to ensuring Japan's compliance with trade obligations,
- Establish a new trade law technical assistance center to assist small businesses and unions to make use of US trade laws.
Expanding Adjustment Assistance for Workers and Communities
6. $35 million increase to create a new office to craft and coordinate
Administration-wide responses and to provide recovery funds for regions
impacted by trade or other severe and sudden economic distress -
increasing economic adjustment by $175 million over 5 years.
- Creates the Office of Community Economic Adjustment (OCEA) modeled
after DoD's highly respected Office of Economic Adjustment - the federal
government's first point of contact with communities slated for military
- The Office will coordinate the Administration's response to regions experiencing severe and sudden economic distress. It will provide planning grants and help communities organize themselves and develop an economic adjustment strategy.
- OCEA will be located at Commerce's Economic Development Administration and will coordinate closely with Treasury and the Labor Department.
7. $39 million increase to reform and extend trade adjustment assistance
-- $459 million over 5 years:
- The President's budget supports to be proposed legislation that would consolidate, reform, and extend the Department of Labor Trade Adjustment Assistance (TAA) and the NAFTA-Transitional Adjustment Assistance (NAFTA-TAA) programs through September 30, 2005. - The reforms would extend eligibility for training and income support to those who lose jobs due to shifts in production abroad, now limited to Canada and Mexico; provide supportive services; and raise the cap on training expenditures.
- In FY 2001, TAA reforms will increase the program's budget authority by $39 million. Over 5 years, the reforms and program extensions are projected to cost $459 million.
Developing and diffusing technologies that increase productivity and enable smaller manufacturers to thrive in the New Economy
8. $20.5 million to assist smaller manufactures and other businesses
overcome barriers to the use of the Internet and E-Commerce.
- The President's November 1998, directive on E-Commerce instructed the
Commerce Department and the SBA to develop strategies to help small
businesses overcome barriers to the use of the Internet and E-commerce.
- The Commerce Department's Manufacturing Extension Partnership will
receive $15 million to focus on the needs of smaller manufacturers. The
SBA will receive $5.5 million to accelerate the adoption of E-commerce
adoption rates in under served markets - women and minority owned
businesses. Through interagency agreements, USDA will be able to
accelerate the adoption of electronic commerce in underserved rural
- SBA, DOC, and USDA will accelerate the adoption of electronic commerce by small businesses by developing, distributing, and supporting through their combined extension service networks, a number of electronic commerce "tools" such as an electronic commerce self-assessment kit, an electronic commerce "jumpstart kit", and an electronic commerce adoption roadmap. The "tools" would be distributed to every small manufacturer in the Nation.
9. $4 million to accelerate the development of the technology
infrastructure needed for manufacturers' and their supply chains to
conduct reliable electronic commerce.
- The Department of Commerce's National Institute of Standards and Technology (NIST) would accelerate the development of the technology infrastructure needed for supporting reliable, effective, interoperable, and secure solutions for electronic commerce, that focus on the needs of manufacturers and their supply chains.
- NIST would collaborate with specific industry sectors, including electronics, automotive, and aerospace to identify, develop, test, and validate needed standards to describe products and business processes in electronic format, so that information can be exchanged quickly and accurately among firms conducting business-to-business electronic commerce.