A Congressional Imperative For US Trade

(The following recommendations were prepared by American business groups in the Gulf Arab states for use in their annual "operation door knock" visits to members of Congress to express support for free trade in the Middle East and elsewhere in the world.)

We, the American businessmen's groups of the Gulf Arab states, support a policy of free trade. We believe there are three elements to correcting the problem of imbalance in US trade. All three elements serve to "level the playing fields" on which American companies must compete in foreign markets.

Amend existing legislation covering US corporations' overseas operations that results in disincentives to American exports.

Enact legislation to encourage and broaden the export process. This can be accomplished by providing incentives to US exporters which are at least equal to those provided by other governments and by raising the national awareness of competition in export markets among nations and firms.

The US government must actively work toward international agreements that promote free trade and lower barriers to US exports.

Success Depends on US Presence Abroad

Our experience in international markets demonstrates that America's success in export sales is dependent on the magnitude of the US presence abroad. The size of this presence is measured not only by the number of American companies operating overseas, but also by the number of American individuals who work and live abroad. This presence is essential to export sales because Americans working abroad tend to sell, specify, and procure US products. The overseas representatives of American sales organizations play an important role in exposing US products to foreign markets. Americans abroad also specify US products in the design of major projects in which they or their firms are involved. US contractors in foreign countries influence purchasing decisions because they are often a party to those decisions. Many US construction contractors operating overseas directly procure for their own jobs, and, of course, they tend to buy what they know—American products. American consultants, project managers, and other advisers are also frequently in a position to directly or indirectly influence the procurement decisions of their foreign clients.

Proposals for Improving the Balance of Trade

We suggest the following measures to bolster the private American presence abroad, increase exports, and improve the US balance of trade:

Enact legislation eliminating disincentives to US exports. This legislation should:

Reduce taxes on Americans working abroad to a level no greater than that imposed on the nationals of America's major competitors for export sales.

Clarify provisions of the Foreign Corrupt Practices Act with respect to accounting standards, liability for third party payments, and the definition of permissible payments.

Release American firms exporting to or operating in foreign markets from provisions of US antitrust laws.

Reduce the number of goods and technologies currently under US government export control.
Enact legislation to promote US exports. Such legislation should:

Encourage, through the Export Import Bank and other means, the support of technical service contracts with American firms on projects which may result in US standards being adopted.

Adequately fund the Export Import Bank program to ensure that US exporters will not be at a disadvantage.

Adequately fund the Department of State and the Department of Commerce to properly promote exports.
The US government should reduce trade barriers by:

Strengthening the president's ability to improve US access to foreign markets and to negotiate multilateral agreements that reduce restrictions on trade.

Mobilizing an interface with countries that are developing their own national standards. This will help assure that a broad range of US products is compatible with foreign standards and that US products are not inadvertently excluded from those foreign markets.