The Foreign Service Journal, May 2009

24 F O R E I G N S E R V I C E J O U R N A L / M A Y 2 0 0 9 leagues on advocacy projects, FCS must reach benchmarks each year in terms of export success stories and commercial diplomacy. According to its latest annual report, in 2008 the agency supported more than 12,000 business successes, amount- ing to almost $70 billion in exports in nearly 200 markets around the world. For each dollar invested in FCS, American clients realized an average of $359 in export sales. With its mandate to broaden and deepen the U.S. exporter base, each office has export success goals, with an emphasis on assisting small and medium-size enterprises, as well as “new to export” and “new to market’’ companies. These goals are important. U.S. exports were the bright spot of the economy in 2008, with a 12-percent increase to $1.84 trillion worldwide. Additionally, December 2008 saw the lowest monthly goods and services deficit since February 2003, contributing to a 3.3-percent improvement in the annual deficit. As American exports comprised 13.1 percent of gross domestic product in 2008, their impor- tance to the U.S. economic engine cannot be overstated. So, for instance, while playing a role in a country team effort to sell turbines to a host country entity, FCS also serves the critical needs of U.S. companies lacking the in- house expertise or resources to begin doing business in for- eign markets on their own. As American businesses reshape themselves to remain globally competitive, so the agency repositions itself to provide customized global busi- ness solutions to service individual company requirements. Challenges and Opportunities To meet its ambitious goals, the U.S. & Foreign Com- mercial Service consistently redefines its best practices, and is thus uniquely positioned to assist American firms of all sizes with their business interests, especially exports, overseas. This process of continuous adaptation presents both challenges and opportunities. Unlike the other foreign affairs agencies, FCS must charge companies for their services, a requirement spelled out by the Office of Management and Budget. (State De- partment “partnership posts” that offer such customized services must also charge for them.) It uses these fee col- lections to cover its expenses. While it is sometimes difficult to explain to American companies why they should pay for U.S. gov- ernment programs, this policy has had the beneficial effect of forcing FCS to operate efficiently and ef- fectively in the interest of its clients. All companies are sent Quality As- surance Surveys upon completion of the service, and each FCS office involved is rated on the results. Officers aim for feedback such as that from the ACS Group, a Schaumburg, Ill.-based producer of auxiliary equipment for the plastics industry. After the company used FCS matchmaking services to identify distributors in Chile, Brazil and El Salvador, its vice president for sales and mar- keting reported: “I was very, very pleased with the level of service. ... Everyone should know about your services!” He also noted that these efforts saved him months, possibly even years, of business development legwork. The issue of maintaining a sufficient income level to re- plenish its budget to sustain operations is all the more acute now, during what is shaping up to be a very dire budget year. Some FCS posts and offices are faring well because American exporters are exploring new opportu- nities in different markets, but others struggle to attract clients during the economic downturn. How FCS Works Part of the International Trade Administration within the U.S. Department of Commerce, FCS has approxi- mately 253 Foreign Service officers (both career and non- career limited appointments) posted throughout the world. The director general, the head of FCS with the F O C U S Chiefs of mission rely on FCS, with its direct contacts with the local and U.S. business communities, to protect American business interests abroad. The Export-Job Creation Nexus • Exports account for 20 percent of manufacturing jobs (approximately 2.64 million positions). • Small and medium-size enterprises constitute the vast majority of growth in new exporters. • Small businesses create 70 percent of new jobs in the United States. • SMEs comprise almost 97 percent of U.S. exporters, but represent only about 30 percent of the total export value of U.S. goods.