FUNDING OF INTERNATIONAL PROGRAMS ON INTELLECTUAL PROPERTY TRAINING

FROM:  U.S. STATE DEPARTMENT
Intellectual Property Training Programs Funded
Media Note Office of the Spokesperson Washington, DC
April 19, 2012
As part of U.S. efforts to combat transnational crime and promote the protection of intellectual property rights (IPR) worldwide, the U.S. Department of State has approved twelve projects totaling $2.6 million in Fiscal Year 2011 anticrime funds. These projects will enable U.S. law enforcement agencies and diplomatic missions to collaborate on the delivery of IPR protection criminal enforcement training and technical assistance programs for foreign law enforcement partners.

Training and technical assistance in the investigation and prosecution of IPR crime will be provided to foreign law enforcement partners in nations across the Pacific Rim, Latin America, and sub-Saharan Africa. The Bureau of International Narcotics and Law Enforcement Affairs and the Bureau of Economic and Business Affairs selected the projects after considering input from the U.S. Intellectual Property Enforcement Coordinator, other federal agencies, our overseas missions, Congress, and industry representatives.

The twelve projects are:
1) Africa - Western Regional Workshops $182,000
Training for West African customs authorities on methods to identify and seize infringing goods.
2) Africa - Sub-Saharan Regional Workshops $525,920
Workshops for Sub-Saharan African law enforcement partners focusing on border enforcement, following the money trail, organized crime involvement in trafficking of counterfeit medicines, and gathering electronic evidence.
3) Africa - East Central Regional Workshops $255,936
Regional training for East African law enforcement authorities in combating counterfeit medicines which threaten human health and safety.
4) ASEAN $242,329
A series of workshops for Association of Southeast Asian Nation (ASEAN) member state judges and prosecutors focused on judicial and prosecutorial management of IPR cases, especially those that involve transnational organized crime.
5) Brazil $150,644
Training seminars through the U.S. Embassy partnership with the Brazilian Government focusing on “notorious markets” identified in the United States Trade Representative (USTR) Special 301 Out-Of-Cycle reviews.
6) Chile $100,000
Training for Chilean judges on handling IPR crimes cases, including development of a judicial bench book and follow up monitoring by the U.S. Mission.
7) Colombia $70,000
Training for the Colombia National Police on combating IPR crime.
8) South Asia Regional $210,185
Joint workshops with Indian, People’s Republic of China, and ASEAN IPR enforcement officials to strengthen and build stronger cross-border partnerships.
9) Mexico $438,814
Training for Mexican enforcement partners on following the money trail, digital evidence in online piracy cases, and border and customs enforcement.
(10) Philippines $175,171
Seminars for Philippine judges and prosecutors on courtroom and case management procedures in IPR cases.
(11) Thailand $184,000
Training for Thai judges, customs officials, and prosecutors to strengthen skills needed to carry out Thai IPR reforms.
(12) Turkey $106,375
Training for Turkish judges and law enforcement officials involved in new special IPR courts.

STATE DEPARTMENT ON USE OF SANCTIONS

FROM:  U.S. STATE DEPARTMENT
Remarks to the ACIEP Sanctions Subcommittee
Remarks Jose W. Fernandez
Assistant Secretary, Bureau of Economic and Business Affairs Washington, DC
April 11, 2012
INTRODUCTION
You know, I spend a lot of time doing very positive work in a number of areas at the State Department. One area we focus on in the Bureau of Economic and Business affairs is economic sanctions, which I know can sometimes be viewed as “the dark side” of our work. We have many carrots at our disposal, but sanctions work is our big stick. But the message that I want all of you to walk away with today is that sanctions regimes can be an effective way to promote some very positive changes around the world.
I will begin my remarks with a brief description of some of the goals and work of our sanctions team, some of whom are here to help answer your more difficult questions, before I present you with a few case studies on sanctions, and I will conclude with how we see our work going forward.

However, I am particularly interested in hearing from you. I’d like to hear your thoughts on the role you envision for U.S. sanctions regimes in our overall economic tradecraft and our message to the business community, so I encourage you to present any ideas or questions you may have at the end of my comments.

THE WORK OF THE SANCTIONS TEAM AT STATE
Sanctions are a foreign policy tool somewhere between hard and soft power, which can play a significant role in encouraging bad actors to change their behavior. Under the Obama Administration, sanctions have proven to be one of our most effective means of increasing pressure on rogue actors and regimes without resorting to force.

Secretary Clinton has noted that one of our country’s great challenges is advancing our global leadership at a time when power is often measured and exercised in economic terms. Our sanctions regimes are a critical part of our economic outreach, and we envision an economic foreign policy in which promotion of business development meshes seamlessly with sanctions that simultaneously encourage our global partners to focus on responsible, innovative markets and isolate the world’s worst human rights abusers and weapons proliferators.

Additionally, the Department has been ramping up its focus on making our sanctions regimes as strong and effective as possible. Given the horrific events occurring in Iran and Syria over the past couple years, these improvements to our sanctions protocol are timely, and in sync with the Administration’s commitment to using sanctions in the most effective manner possible.

In light of this new focus, we have been expanding our sanctions team, adding six more people and bringing in a new Deputy assistant Secretary to focus wholly on our sanctions programs. We are aiming for a re-vamped sanctions Deputate by mid-summer.

Already, our economic sanctions experts are in constant contact with others at the State Department who also play a key role in sanctions policy, including our colleagues focused on non-proliferation, counter-terrorism, and human rights, and those on our country desks who coordinate our overall relationship with a country. Through this interaction, we ensure that our sanctions policies are focused in the right way so as to maximize their impact.

We hope that these changes will allow the State Department to coordinate more effectively with other agencies to wield targeted sanctions and other economic pressure against our adversaries.
Wherever possible, we have attempted to target our sanctions on individuals and entities within a country directly engaged in the activities that we seek to change. These targeted sanctions are sometimes referred to as “smart sanctions.” In doing so, we seek to make it clear that we are not targeting the population of a country but rather those in control who can stop the bad behavior of a particular regime.

CASE STUDY: LIBYA
Libya is an example of when sanctions can be most effective: in environments of international cooperation. When the international community cooperates on sanctions, targeted entities have a harder time avoiding them and the likelihood of success in effecting desired changes increases. These sanctions, in combination with an effective military pressure and support for Libyan rebel forces provided by the international coalition, helped isolate the Qadhafi regime, resulting in the regime’s ultimate downfall.
I will be traveling to Libya in a week’s time, and I will get a better sense of lessons learned from our sanctions regime while I am there.

As you all know, both the Administration and the international community have now passed measures that significantly ease sanctions on Libya. Though final winding down of the Libyan sanctions programs may take some additional time, this is a good example of how sanctions regimes can change over time based on the goals of each sanctions program and the situation on the ground.

CASE STUDY: BURMA
Although challenges remain, the Burmese Government has taken some positive steps toward democratization and civic openness since Than Sein became President in 2011. During her trip to Burma in December 2011, Secretary Clinton announced an “action-for-action” strategy to encourage reformers to take further steps.
As a result of Burma’s successful by-elections on April 1, Secretary Clinton announced on April 4 a series of steps that the United States is prepared to take as part of our action-for-action strategy.
Among steps on the sanctions front, these include a broad exemption from our Burma sanctions for a wide spectrum of non-profit activities. This will make it much easier for U.S
. entities and individuals to build schools, clinics, libraries, and other institutions in Burma. U.S. citizens will also be authorized to set up university exchange programs, public health initiatives, conservation projects and a host of other activities that will benefit the Burmese people.
This step is in line with the Secretary’s commitment during her visit to Burma to increase exchanges with the people, civil society organizations, and government.

We will also begin the process of a targeted easing of our ban on the export of U.S. financial services and investment, as part of a broader effort to help accelerate economic and political reform.
Our aim will be to recognize the reforms underway and take actions that assist the country's development and reform process. We will work closely with our allies and counterparts, including within our own government, to coordinate these changes.

CASE STUDY: SYRIA
Syria presents another example of international coordination. As it became clear that President Assad was not going to lead a democratic transition, and as the violence against the Syrian people increased, we felt it necessary to coordinate a strong international response.

We have worked systematically to increase our own pressures, including tough targeted sanctions against the Assad regime. At the same time, in literally hundreds of meetings and conversations, President Obama, Secretary Clinton, senior officials, our ambassadors, and others have steadily and systematically worked to build concerted international pressure.
Our aim was to build a strong international effort in support of the universal rights of the Syrian people, and to condemn and isolate the Assad regime. We recognized from the start that American leadership was crucial to this effort, but to have maximum impact in Syria, we wanted to lead the chorus of voices and pressures, not just make this a solo act.
This coordination led to similar actions by our partners and allies around the world, such as the EU and Canada, to isolate the Government of Syria from the international financial system and deprive it access to significant revenue streams that are generated by its petroleum sector.

Syria continues to pose challenges, and we continue to look at ways in coordination with our international partners to increase pressure on the Syrian regime. Again, this dire situation requires a chorus, not a solo.

CASE STUDY: IRAN
Iran remains one of our greatest foreign policy challenges, and our Iran sanctions regimes are one of our greatest tools in pressuring Iran to comply with its international obligations.
The United States and our international partners are determined to prevent Iran from acquiring a nuclear weapon. We remain committed to a dual-track policy that combines the use of pressure with engagement.

In response to Iran’s actions, which point to an Iranian nuclear weapons program, as well as to last fall’s Iranian plot to assassinate the Saudi ambassador to the United States, the United States and its international partners have continued a steady drumbeat of new sanctions measures. Let me review a few of the most recent developments.
First is Executive Order (E.O.) 13590, which President Obama issued in November. This Order targets the provision of goods and services to Iran’s upstream oil and gas industry and to Iran’s petrochemical sector. This order expands on existing sanctions, and authorizes sanctions on persons who knowingly support Iran in a way that could directly and significantly contribute to Iran’s ability to develop its petroleum and petrochemical sector.

These new measures will make it more difficult for Iran to circumvent existing sanctions by obtaining foreign expertise to assist in the development of its petroleum resources or dual-use items to refine petroleum in its petrochemical facilities. They will also help accelerate the decline of Iran’s already-deteriorating crude oil production.
In December, President Obama signed into law the National Defense authorization act (NDAA) for fiscal year 2012. This law provides for sanctions on foreign financial institutions for significant transactions, both petroleum and non-petroleum related, with the Central Bank of Iran (CBI) and designated Iranian financial institutions. These new sanctions are designed to target both the CBI and Iran’s crude oil revenues, while avoiding disruptions to international oil markets. We are reaching out to oil-consuming countries to help them respond to the new legislation and find alternatives to energy supplies from Iran.

These efforts have been successful. Most recently, the Secretary announced that 11 countries have qualified for an exception under the NDAA because they significantly reduced their imports of Iranian crude oil. These actions will reduce demand for Iranian crude and the revenues it needs to continue pursuing its nuclear aspirations.
In January, the European Union followed our lead and imposed strong sanctions of its own, imposing an embargo on Iranian crude and sanctioning the CBI. This multilateral approach has brought an unprecedented amount of pressure on Iran.

We also continue to enforce existing laws. For example, in January we imposed sanctions under the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA) on three companies for conducting business with Iran’s energy sector, specifically the provision of refined petroleum products to Iran. The firms are Zhuhai Zhenrong Corporation (China), Kuo Oil Pte. Ltd. (Singapore), and Fal Oil Company Ltd (UAE). These firms were among the biggest remaining suppliers of refined petroleum to Iran.

Ironically, though, we have been most effective when we haven’t imposed sanctions under these laws. In many cases, we have used the law as leverage to convince firms to discontinue their business with Iran. The Department does extensive outreach to foreign companies at risk of violating these regulations, and works with them and their governments to deter sanctionable activity in Iran. In this manner, we have prevented many companies across the world from doing business in Iran’s energy sector, and have cut off billions of dollars in potential investments in Iran.

These efforts, combined with our demonstrated resolve to impose sanctions when necessary, sends a clear message to our international partners in the business community: Although we are eager and enthusiastic to work with you to find alternate sources of energy, businesses that continue to support Iran’s energy sector and help facilitate Iran’s continued unwillingness to comply with its international nuclear obligations will face serious consequences.

We are committed to engagement, and we are hopeful that Iran's recent willingness to meet in the P5+1 Framework will lead to serious negotiations about its nuclear program. We believe that the united international front and increasing global pressure have been critical in getting Iran to return to the negotiating table. For that reason, we must continue to impose pressure through sanctions and other means until Iran addresses the international community's concerns over its nuclear program.

LOOKING FORWARD
We and others in the Administration and in Congress are always looking at new ways to further increase pressure on the worst regimes. We are especially focused now on additional measures to take against Iran and Syria. In any deliberations, we look to leverage the best possible outcome in line with U.S. foreign policy goals.

Our multifaceted approach to Economic Statecraft presents many opportunities for businesses around the world to grow and prosper working with the United States, while simultaneously staking a strong position, along with our global partners, that it cannot be business-as-usual with states that ignore the international community, flaunt illicit nuclear development, and commit terrible abuses on their own people. On sanctions, the United States is dedicated to a leadership role in developing a responsible and innovative global economic policy.
I welcome any questions or comments you may have, and my team is here to assist when things get very technical.

ISAF KILLED 13 INSURGENTS AND CAPTURED SIX SUSPECTS IN EASTERN AFGHANISTAN

FROM:  AMERICAN FORCES PRESS SERVICE

Afghan, Coalition Forces Kill 13 Insurgents, Detain 6 Others

From an International Security Assistance Force Joint Command News Release

BAGRAM, Afghanistan, April 19, 2012 - Afghan and coalition forces killed 13 insurgents and captured six suspects during operations in eastern Afghanistan yesterday, military officials reported.

-- A coalition airstrike killed 10 armed insurgents posing an immediate threat to nearby ground troops in the Sherzad district of Nangarhar province.

-- Another coalition airstrike killed three insurgents after ground troops received small-arms fire in Nangarhar province's Khugyani district.

-- Afghan soldiers detained six suspected insurgents in Dand Patan.
 

Erste Nutzlast für die nächsten Galileo-Satelliten ist bereit

Erste Nutzlast für die nächsten Galileo-Satelliten ist bereit

TWO FORMER EXECUTIVES PLEAD GUILTY IN BRIBERY CONSPIRACY INVOLVING AT LEAST 30 COUNTRIES

FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, April 17, 2012
Two Former Executives of California Valve Company Plead Guilty to Foreign Bribery Offenses

WASHINGTON – Stuart Carson, the former president of Rancho Santa Margarita, Calif.-based valve company Control Components Inc. (CCI), and Hong “Rose” Carson, the former CCI director of sales for China and Taiwan, have pleaded guilty to violating the Foreign Corrupt Practices Act (FCPA), announced the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Central District of California.

The Carsons, who are married and reside in San Clemente, Calif., each pleaded guilty late yesterday before U.S. District Judge James V. Selna in Santa Ana, Calif., to separate one-count superseding informations charging them with making a corrupt payment to a foreign government official in violation of the FCPA.  According to court documents, CCI designed and manufactured service control valves for use in the nuclear, oil and gas, and power generation industries worldwide.  At sentencing, Stuart Carson, 73, faces up to 10 months in prison.  Rose Carson, 48, faces a sentence of three years probation, which may include up to six months of home confinement.  Sentencing is scheduled for Oct. 15, 2012.

On Apr. 8, 2009, the Carsons and four other former executives of CCI were charged in a 16-count indictment for their roles in the foreign bribery scheme.  The four former CCI executives charged include Paul Cosgrove, CCI’s former director of worldwide sales; David Edmonds, CCI’s former vice president of worldwide customer service; Flavio Ricotti, the former CCI vice president of sales for Europe, Africa and the Middle East; and Han Yong Kim, the former president of CCI’s Korean office.  On Apr. 28, 2011, Ricotti pleaded guilty to one count of conspiracy to violate the FCPA.  The trial of Cosgrove and Edmonds is scheduled for Jun. 5, 2012.  The charges against Kim are pending as well.  An indictment merely contains allegations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

In related cases, two defendants previously pleaded guilty to conspiring to bribe officers and employees of foreign state-owned companies on behalf of CCI.  On Jan. 8, 2009, Mario Covino, the former director of worldwide factory sales for CCI, pleaded guilty to one count of conspiracy to violate the FCPA.  On Feb. 3, 2009, Richard Morlok, the former CCI finance director, also pleaded guilty to one count of conspiracy to violate the FCPA.  Covino, Morlok and Ricotti are scheduled to be sentenced in November and December 2012.

On July 31, 2009, CCI pleaded guilty to a three-count criminal information charging the company with conspiracy to violate the FCPA and the Travel Act, and two substantive violations of the FCPA.  CCI was ordered to pay an $18.2 million criminal fine, placed on organizational probation for three years, and ordered to create and implement a compliance program and retain an independent compliance monitor for three years.  CCI admitted that from 2003 through 2007, it made corrupt payments in more than 30 countries, which resulted in net profits to the company of approximately $46.5 million from sales related to those corrupt payments.

The case is being prosecuted by Deputy Chief Charles G. La Bella and Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Douglas McCormick and Gregory Staples of the U.S. Attorney’s Office for the Central District of California.  The case was investigated by the FBI’s Washington Field Office, and its team of special agents dedicated to the investigation of foreign bribery cases.

HHS AND HEALTHCARE COMPANY SETTLE OVER PATIENT INFORMATION SAFEGUARDS

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES

HHS settles case with Phoenix Cardiac Surgery for lack of HIPAA safeguards

Phoenix Cardiac Surgery, P.C., of Phoenix and Prescott, Arizona, has agreed to pay the U.S. Department of Health and Human Services (HHS) a $100,000 settlement and take corrective action to implement policies and procedures to safeguard the protected health information of its patients. 

The settlement with the physician practice follows an extensive investigation by the HHS Office for Civil Rights (OCR) for potential violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy and Security Rules.

The incident giving rise to OCR’s investigation was a report that the physician practice was posting clinical and surgical appointments for its patients on an Internet-based calendar that was publicly accessible.   On further investigation, OCR found that Phoenix Cardiac Surgery had implemented few policies and procedures to comply with the HIPAA Privacy and Security Rules, and had limited safeguards in place to protect patients’ electronic protected health information (ePHI). 

“This case is significant because it highlights a multi-year, continuing failure on the part of this provider to comply with the requirements of the Privacy and Security Rules,” said Leon Rodriguez, director of OCR.  “We hope that health care providers pay careful attention to this resolution agreement and understand that the HIPAA Privacy and Security Rules have been in place for many years, and OCR expects full compliance no matter the size of a covered entity.”

OCR’s investigation also revealed the following issues:

• Phoenix Cardiac Surgery failed to implement adequate policies and procedures to appropriately safeguard patient information; 
• Phoenix Cardiac Surgery failed to document that it trained any employees on its policies and procedures on the Privacy and Security Rules;
• Phoenix Cardiac Surgery failed to identify a security official and conduct a risk analysis; and
• Phoenix Cardiac Surgery failed to obtain business associate agreements with Internet-based email and calendar services where the provision of the service included storage of and access to its ePHI.

Under the HHS resolution agreement, Phoenix Cardiac Surgery has agreed to pay a $100,000 settlement amount and a corrective action plan that includes a review of recently developed policies and other actions taken to come into full compliance with the Privacy and Security Rules.

Airdrops could play key role in eventual Afghanistan transition

Airdrops could play key role in eventual Afghanistan transition

U.S. Navy Photos of the Day Update

U.S. Navy Photos of the Day Update

FIRST SECRETARY-GENERAL APPOINTED BY COMMUNITY OF DEMOCRACIES

FROM:  U.S. STATE DEPARTMENT
Community of Democracies Appoints First Secretary-General
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
April 17, 2012
I was pleased to learn that the Governing Council of the Community of Democracies (CD) unanimously selected Sweden’s Ambassador-at-Large for Democracy, Maria Leissner, as the CD’s first Secretary-General-Designate. Her appointment marks a major step in the Community’s transformation from a forum for democracies to convene, into an operational hub for democracy assistance and promotion. As chair of the CD’s reform working group and a key leader of the intergovernmental coalition’s revitalization over the last two years, Ambassador Leissner has brought together a diverse array of partners to provide concrete support for democracies in transition. I send my deepest congratulations to Ambassador Leissner, and I look forward to working with her as we support emerging democracies and civil society around the world.

PRESIDENT OBAMA AND NASCAR CHAMPION

FROM:  WHITE HOUSE
President Barack Obama looks at the NASCAR Sprint Cup Series Championship trophy as he approaches Tony Stewart's car during an event on the South Lawn of the White House, April 17, 2012. NASCAR Sprint Cup Series drivers Tony Stewart, center, Kyle Busch, and Ryan Newman, right, watch nearby. (Official White House Photo by Chuck Kennedy)

EPA FINALIZED STANDARDS TO REDUCE AIR POLLUTION ASSOCIATED WITH NATURAL GAS AND OIL

FROM:  EPA

Statements on EPA's Updated, Achievable Air Pollution Standards for Oil and Natural Gas

In response to a court deadline, the U.S. Environmental Protection Agency (EPA) has finalized standards to reduce harmful air pollution associated with oil and natural gas production. The updated standards, required by the Clean Air Act, were informed by the important feedback from a range of stakeholders including the public, public health groups, states and industry. As a result, the final standards reduce implementation costs while also ensuring they are achievable and can be met by relying on proven, cost-effective technologies as well as processes already in use at approximately half of the fractured natural gas wells in the United States. These technologies will not only reduce 95 percent of the harmful emissions from these wells that contribute to smog and lead to health impacts, they will also enable companies to collect additional natural gas that can be sold. Here’s what people across the country are saying about EPA’s updated, achievable air pollution standards for oil and natural gas:
Albert A. Rizzo, M.D., Chair, Board of Directors of the American Lung Association: 
 
“…The cleanup of air pollution from oil and natural gas wells is essential to protect public health and growing in importance as the industry expands.  We applaud EPA’s response to this rapidly expanding source of air pollution…”
 
Howard Feldman, American Petroleum Institute (API) Director of Regulatory and Scientific Affairs:
“The industry has led efforts to reduce emissions by developing new technologies that were adopted in the rule. EPA has made some improvements in the rules that allow our companies to continue reducing emissions while producing the oil and natural gas our country needs. This is a large and complicated rulemaking for an industry so critical to the economy, and we need to thoroughly review the final rule to fully understand its impacts.” 
 
 Lynn Thorp, Clean Water Action National Campaigns Director:
 
“Our members in Pennsylvania, Texas, and Colorado have suffered because state regulators haven’t acted to control oil and gas operations, so these standards are a win-win-win. They protect people from air pollution, help curb climate change and save the industry money. People expect the federal government to use their authority to protect their health, their drinking water and the air they breathe and this is a good first step.”
 
Trip Van Noppen, Earthjustice President:
 
“Left to its own devices, the oil and gas industry has turned the clear skies over Wyoming as smoggy as the car-choked highways of Los Angeles. For decades, industry had a free pollution pass. Thanks to a court victory, that changes today. There is more work to be done to protect Americans living near oil and gas fields from cancer and other unacceptable health threats, but this rule from EPA is an important first step.”
  
John Rumpler, senior attorney for Environment America:
 
“From Colorado to Pennsylvania, the gas industry is making a killing from drilling, and at the very least they should cut dirty and dangerous air pollution that threatens our families’ health. EPA’s action today is a breath of fresh air for every man, woman, and child living in the shadow of the gas drilling boom.”
 
Michael Brune, Executive Director of the Sierra Club:
“EPA Administrator Lisa Jackson is taking an important first step in closing loopholes for the natural gas industry and addressing dangerous air quality levels in and near frack-fields across the country. The natural gas industry dumps massive amounts of air pollutants into our air every day, sickening families and children.  An industry that touts its ability to efficiently drill thousands of wells thousands of feet into the earth is crying wolf when it claims it can’t build enough tanks to capture wellhead pollution.  It’s time we clean up the natural gas industry’s dirty and reckless practices.”

STATE DEPARTMENT SAYS DIPLOMACY SUPPORTS U.S SMALL BUSINESS ABROAD

FROM:  U.S. STATE DEPARTMENT
U.S. Diplomatic Support for Small Business Abroad
Remarks Reta Jo Lewis
Special Representative for Global Intergovernmental Affairs Washington Forum 2012; The Liaison Capitol Hill Hotel
State International Development Organizations
Washington, DC
April 12, 2012

Good afternoon and thank you Manny for that very kind introduction.
I am delighted to have the opportunity to meet with SIDO as you devote two days to engaging in rich and substantive dialogue on ways to expand trade and investment opportunities for your states.

I was enthused when I learned that SIDO requested that I discuss how U.S. diplomacy supports American small businesses abroad. This topic is particularly timely in light of Secretary Clinton’s doctrine of “economic statecraft,” which places economics at the center of our foreign policy agenda.
Secretary Clinton firmly believes that America’s foreign policy can champion U.S. businesses abroad and drive recovery here at home, and also help provide a strong foundation and effective economic tools that can strengthen and sustain America’s global leadership.

Given the Department of State’s far-reaching work overseas, she asked the Department leadership to identify ways to use our platforms and relationships abroad to strengthen the connection between diplomacy and economics. In other words, she asked the Department of State to answer the question of what we can do for business.

In furtherance of this agenda, Secretary Clinton hosted the first-ever Global Business Conference at the Department of State in February. Over 200 private sector representatives from more than 120 countries met with senior U.S. Government officials to focus on regional issues and how we can move forward together to seize opportunities, grow the global economy, and create American jobs.

These issues have not always been a traditional focus for the State Department. So why, you might ask, is the Secretary of State now spending as much time thinking about market swings as missile silos?

Well, to put it very plainly, Americans need jobs. And every $1 billion of goods we export supports more than 5,000 jobs here at home – even more in industries like telecommunications and aerospace. That is why President Obama announced the National Export Initiative in his 2010 State of the Union address and set the ambitious goal of doubling America’s exports by the end of 2014. And, we are very proud that we now expect to hit that target ahead of schedule.

We also understand that America’s economic strength and our global leadership are a package deal. You’re not going to have one without the other. Our power in the 21st century depends not just on the size of our military but also on what we grow, how well we innovate, what we make, and how effectively we sell.

Finally, we fundamentally believe that increasing trade and growing prosperity will benefit not just our own people, but people everywhere. Our economies are interdependent as never before. America’s economic renewal depends to a large degree on the strength of the global economy, and the global economy depends on the strength of America.
Secretary Clinton has made “Jobs Diplomacy” a priority mission at the State Department, with the clear goal of being the most effective diplomatic champions for prosperity and growth.

To achieve these goals, Secretary Clinton has developed a plan which begins with good people and good partners.

So, the Department of State is improving training for diplomats in economics, finance, and markets, and working more closely with colleagues across government to leverage the best possible skills and resources. Secretary Clinton has directed all of our senior diplomats to conduct business outreach and advocacy when they travel overseas. In addition, the Secretary created a new, unified under secretariat for economic growth, energy, and the environment.

Effective Jobs Diplomacy also requires partners on the ground with deep knowledge and extensive networks – and that is why American chambers of commerce and other bilateral trade associations are at the heart of our effort.

So we train our people, we find our partners, but the real questions is: Can Jobs Diplomacy deliver results that make a difference to Americans throughout the country, to the bottom line of companies and to the daily lives of U.S. citizens?
We are pursuing three lines of action to do just that: first, promoting U.S. businesses; second, attracting investment back to the United States; and third, leveling the playing field for fair competition.

Let’s start with how we advocate for U.S. companies trying to win contracts and make sales. This is not about picking winners and losers. It’s about helping all American companies put the best foot forward overseas to get a fair shot in every market.

The State Department is the face of the United States in over 190 countries and at 274 posts around the world. We fight for the rights of the business community. Over the past 60 years, we have helped establish the rules and institutions to safeguard healthy economic competition and spur unprecedented global growth.

For decades, our diplomats, trade negotiators, agriculture experts, and commercial service officers have worked hard to advocate for U.S. businesses. We have over 1,000 State Department economic officers around the world who strive to help American companies, large and small, compete, connect, and win.

We support American businesses overseas by providing commercial information and identifying market opportunities for American firms, advocating on their behalf and encouraging corporate responsibility. We answer questions from the business community and provide information on important issues such as corruption and bribery in overseas markets, export controls on sensitive equipment and technologies, and business-related visas for employees, partners, and clients of U.S. firms. The State Department Business Visa Center in Washington, D.C. assists businesses located in the United States by providing information about the application process for business visitor visa travel to the United States.

Jobs Diplomacy is not just about the giants of business. We are just as committed to helping small and medium-sized businesses. After all, that is where most of the jobs are in the United States. For example, when Iceland began looking for help converting its vehicles to electric power, our embassy championed a dynamic startup from Loveland, Ohio that does this work as well as anyone in the world. And in the end, the Ohio company won a contract worth $500 million and sold 1,000 electric SUVs.

The second focus of Jobs Diplomacy is helping to attract foreign direct investment – we call it “Global Investment” – into American communities. In order to make attracting and retaining foreign investment in the United States a priority across our government, President Obama launched last summer SelectUSA, a federal initiative to attract and retain foreign investment. The Departments of State and Commerce are working hand-in-hand on this program and we are already seeing results. Together we are looking for foreign companies and investors in the top 25 overseas markets to come to your states to make investments.

Several of our embassies have hosted programs for U.S. governors, and have supported promotional agendas for many states, cities and regions from across the United States. For example, the U.S. Commercial Service in Spain has developed the ServiceSolutionsUSA initiative which promotes business links between Spanish investors and American service providers, including lawyers, accountants and consultants. ServiceSolutionsUSA introduces Spanish investors to U.S. service providers as well as to state economic development offices from all 50 states. Many American service providers have already successfully supported Spanish investors in the United States, and this service is now being replicated at other U.S. Embassies.

In furtherance of the Secretary’s vision, the Office of Global Intergovernmental Affairs has leveraged U.S. state and local officials in our economic strategy in China and India, among other nations.

My office supported the establishment of the U.S. China Governors Forum in 2011 which brought together American and Chinese governors to discuss trade and investment, energy, the environment, agriculture, and education issues. And not long afterwards, one of the largest heavy equipment manufacturers in China announced a $60 million investment in Peachtree City, Georgia, with plans to add an additional $25 million across the state and hire 300 engineers in the next five years.

The U.S. Embassy and five Consulates in China work with our office, in cooperation with the Foreign Commercial Service and Foreign Agricultural Service, to provide tailored programs and services to U.S. governors visiting China. At the same time, Ambassador Gary Locke has made promoting U.S. exports and facilitating bilateral investment a top priority. In addition, the U.S. Mission to China works hard to counter the mistaken impression in China that the United States discriminates against Chinese investment.
We also collaborated with Maryland Governor Martin O’Malley on his historic trade mission to India in 2011. In preparation for the mission, our office, the U.S. Mission to India, including the U.S. Foreign Commercial Service, worked closely with Governor O’Malley’s Office, the Maryland Secretary of State’s Office, and Signe Pringle, Program Director of the Maryland Department of Business and Economic Development, who is here with us today. The mission opened new doors between the State of Maryland and India to strengthen trade and investment.

Two Indian companies plan investments in Maryland and eight Maryland businesses signed deals with Indian partners, with a combined total of nearly $60 million in business deals for the state and several additional deals worth millions still on the horizon.

We continue to work with city and state leaders to help them replicate these successes.
The third focus of Jobs Diplomacy is leveling the playing field for all, so American companies can compete and succeed everywhere. The United States is committed to a global economic system that is open, free, transparent, and fair. And we’re working to institutionalize those norms in regional and global trade agreements and institutions. We’re pushing for reforms that allow more people in more places to participate in the formal economy – especially women.

We stand up for entire industries. For instance, our team in Australia helped beat back unwarranted legal actions against American pork producers, leading to a significant increase in exports last year.
And, we stand up for small companies, like the bedding producer in Washington State that faced a crisis when Canadian regulators hit its products with a higher tariff. After the State Department, working closely with the Canadian Embassy, intervened, the Canadian regulators realized they had made a mistake and reversed their decision.

Big or small, we’re standing up for an economic system that benefits everyone. The State Department is here to help. So when businesses confront unfair regulations, when they need help cutting through red tape, of if they just want advice on local customs, they can come to the State Department.

To make this even easier, in key markets across the world, our ambassadors are now holding monthly conference calls with the U.S. business community.

We’re standardizing commercial information on all of our embassy websites so U.S. companies can find the answers they need in one place. This will complement the newly launched BusinessUSA website, a virtual one-stop for the services and information companies need to help them grow, hire, and export.

In addition, the State Department has established the Direct Line program which provides a unique opportunity for American businesses, particularly small- and medium-sized enterprises, to engage directly via teleconference with U.S. ambassadors overseas. The program is open to American companies which are already in the country where the ambassador serves or which are interested in expanding their businesses into those countries.

So, these are all the ways in which Jobs Diplomacy is helping deliver results. And in the days and months ahead, we’re going to push even harder. We will not rest until the U.S. Government is the most effective champion of business and trade anywhere.
We look forward to working with you on your international needs.