Businesses that export increase their competitive advantage, create more jobs, pay higher wages and earn higher revenue.
In Colorado, exporting supports about 89,000 jobs. During 2005, businesses exported to 193 foreign destinations, including Canada and Mexico, the state’s top two trading partners.
However, according to the World Trade Organization, the volume of world trade will decline 9 percent this year – the largest drop since World War II. And the International Monetary Fund projects that world GDP will decline by 0.5 percent – the first negative number in more than 60 years.
“Clearly, we are in new territory, both for our struggling domestic economy and for emerging global trade patterns,” said Dennis Chrisbaum, regional manager of the Small Business Administration’s International Trade Program. “However, our trade deficit with the rest of the world has finally begun to narrow, as our imports have plummeted. In February, the U.S. had a trade deficit of only $26 billion – the lowest in nine years – as imports continued to plunge while exports stabilized, even growing slightly.”
As the U. S. economy starts to recover, the economies of our trading partners will likewise recover, and demand will increase for U.S. products and services.
“Thus, 2009 is the time for companies to re-evaluate business plans and their opportunities in other markets, and to diversify away from positions that are too dependent on the U.S. economy,” Chrisbaum said.