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STATEMENT

of the

Honorable Patrick Murphy, Ranking Member

Committee on Small Business Subcommittee on Agricutlure, Energy, and Trade of the House 

Hearing Entitled: "Small Business Trade Agenda: Opportunities in the 113th Congress"

March 27, 2013

Thank you, Mr. Chairman.  As the Ranking Member of the Subcommittee for Agriculture, Energy, and Trade, I’m looking forward to working together to find common ground and bipartisan solutions.  Having been a small business owner, I know the obstacles small businesses face, and I know how essential their success is to generating new jobs and driving our economic recovery.  Earlier this week, I sat down with the Distinguished Chairman to discuss the important challenges facing America’s small businesses.  There is clearly much to be done.  And as I said, I look forward to working with the Chairman over the next two years, and I feel confident in our ability to drive bipartisan solutions through this subcommittee.

Today, we hold our first Subcommittee hearing on small businesses’ ability to participate in international trade—a realm in which big business continues to have a clear advantage.  We have before us four extremely knowledgeable witnesses, and I look forward to hearing their ideas on how Congress can help small businesses export their goods and be more competitive on the world stage.

Right now, our economy is recovering gradually, and yet unemployment is not expected to drop below 7½ percent until 2015—which will make 6 straight years of unemployment above 7½ percent.  As a result, the number one priority for this Committee has to be job creation, and one way to boost jobs is to open new markets to small businesses, which account for 50 percent of all jobs in the United States.  Right now, small businesses make up 97 percent of all US exporters, but only about 30 percent of the goods exported.  I believe there are measures Congress can take to make international trade more accessible to small businesses to help even the playing field as demand for US products on the global marketplace—which serves 95 percent of world’s consumers—grows.

Right now, the vast majority of our small businesses still do not market their products internationally.  Of those that do, many only send their goods to our neighbors to the north and south, and do not take advantage of markets in Europe and Asia.  Clearly, there remains significant opportunity to expand the role of small businesses in international trade. 

To address this area of potential growth, the Small Business Adminstration, the Export-Import Bank, and the International Trade Administration each offer programs specifically tailored to provide education, networking, technical, and financial assistance to small firms engaging in international trade.  And I am particularly interested in hearing about the experiences our witnesses had with these programs.

This is one area I am particularly concerned could suffer from Congress’ inability to address sequestration because it is vital these agencies have the resources they need to perform their essential work.  SBA’s export programs generated $1.6 billion in sales in Fiscal Year 2010 alone.  That translates into real jobs here at home.  We need to amplify—not reduce—these successful programs, while simultaneously cutting back on programs that have proven ineffective.  Mandatory cuts across the board to SBA’s budget would not achieve this.

Agricultural exports is one area that is poised for expansion.  Small farms constitute more than 90 percent of the sector.  In 2011, US agricultural exports reached nearly $140 billion, outpacing the previous record set in 2008 by 20 percent.  This growth shows that America’s farmers have the potential to help lead our economy forward, spurring development and employment gains across the country.  This is especially true in my own district in Florida, which is recognized for its citrus and vegetable production.

However, as we examine the best way to stimulate international trade amongst small businesses, we must recognize the double-edged nature of free trade agreements.  Lowering tariffs and other barriers clearly spurs commerce between countries, but at the same time we have seen new imports undercut hard-working US businesses by introducing significantly cheaper good into our markets.  For example, I recently visited Adams Ranch in Fort Pierce in my district, where I heard from farmers concerned that cheap Mexican tomatoes may be disrupting the marketplace for our growers.  Learning what works and what hurts our small businesses is essential to any future trade agreements.

Issues like these will continue to challenge small exporters, but I look forward to small firms’ involvement in trade continuing to grow.  Over the last decade, exports from smaller companies have doubled and are now valued at nearly $320 million per year.

With three quarters of world purchasing power outside of the United States, access to foreign markets is no longer optional, but essential, for many businesses’ continued success. 

By helping more small firms export abroad, we can accelerate economic growth and create the jobs Americans so badly need.

I thank the witnesses in advance for their testimony and yield back.

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