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Fred Hochberg

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American Business Needs to Get in the Game

Posted: 03/24/11 12:34 PM ET

Teamwork. Cooperation. Intense preparation.

That's what is needed to win at the highest levels of athletic competition. It also is what will be needed in Brazil as the country prepares to host two of the world's largest sporting events: the 2014 World Cup and the 2016 Summer Olympics.

As I traveled with President Obama in Brazil, you could see the anticipation and excitement building for these events; you also could see the enormous investment and planning that is required to ensure that they will be successful.

Brazil is planning to spend $200 billion in additional infrastructure across the country on everything from roads and public transportation to airports and sports stadiums. World Cup events alone will be played in 12 cities.

It is critical, as President Obama told business leaders in Brazil, that America does more than just watch these projects from the stands. It is critical that we get in the game.

We may not always win on the soccer field, but when it comes to providing the engineering services, machinery, security systems and IT support required to build and run the stadium, or the buses and transportation systems needed to get fans into their seats, American business is second to none.

This is no time for the United States, particularly our business community, to be sitting on the sidelines. These projects play into America's strength -- and require the types of high-quality capital goods and services that U.S. companies lead the world in producing.

To ensure that Brazil can obtain more American-made products and services for these important projects, President Obama announced $1 billion in financing through the Export-Import Bank of the United States.

Its purpose is to facilitate the purchase of more American goods and services for various infrastructure projects, including those associated with the World Cup, the Olympics and the rebuilding that is needed in the wake of recent flooding in Brazil.

One of the key points President Obama emphasized in our meetings was the enormous opportunity for Brazil and the United States to be doing more business together. And to be doing the kind of business that is mutually beneficial for our countries -- the type that creates good jobs and boosts local economies.

2010 was a strong year for that type of cooperation and teamwork. And there is reason to be even more bullish on the future.

U.S. goods exports to Brazil were up 35 percent in 2010. These sales support about 250,000 U.S. jobs. And over the last five years we have doubled our exports to Brazil.

This has allowed our countries to build a strong and mutually beneficial $80 billion trading relationship -- and we see enormous opportunity to grow and deepen these economic ties in the coming years.

Brazil's economic trajectory has been remarkable. Today, it is the world's seventh largest economy --a \nd this growth has helped put millions of Brazilians on a path to the middle class.

However, meeting the needs of this growing middle class will require significant additional investment in building power capacity and infrastructure.

In Rio today, 16 percent of people move around the city using mass transit. The country is making plans to raise that figure to 50 percent by 2016. This will require an incredible investment.

The city currently has 25,000 hotel rooms. To meet the demand for upcoming events, they are looking to grow that by 4,000 rooms by 2013, with the goal of further increasing capacity for the Summer Olympics.

In addition to these infrastructure projects, Brazil is expecting electricity consumption to grow more than 60 percent between 2009 and 2019, requiring total investment of more than $128 billion.

To address this, Brazil is rapidly developing its renewable energy sector, with a particular focus on biofuels, hydropower, wind and solar. The country also recently discovered deepwater oil reserves that are twice the size of our reserves.

These are all additional areas of opportunity and for partnership between our countries -- and they are sectors where private investment is critical. They also happen to be areas where Ex-Im Bank's financing is particularly effective at ensuring the success of a project.

We have a long history of working with Brazil, beginning back in 1936. Much of our early work involved financing the sale of millions of dollars of American-made electrical, railway, mining, and cargo equipment.

As Brazil continues to build and rebuild, there is an enormous opportunity for the U.S. to assist on these critical projects. And we are continuing to look for new and innovative ways to finance these transactions.

In the last two years, our nation has made real progress in building the foundation for an export-focused economy. And the results are beginning to show: Exports were up 16.7 percent in 2010, putting us on target to meet President Obama's goal of doubling exports by 2015. And in January they hit the highest one-month total ever recorded.

To continue building on that momentum, we need to focus on strategic partnerships with key markets across Latin America.

In today's global economy, nations that build together -- and buy from each other -- are invested in ways that go far deeper than just business transactions. They are investing in each other's prosperity, security and economic vitality. They are investing in the hopes and dreams of each other's citizens.

When we make these investments, regardless of what happens on the playing field, both our countries -- and our citizens -- come away winners.

 
 
 
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HUFFPOST SUPER USER
bllnsinchnge
peace, markets, freedom
09:22 PM on 03/27/2011
..."U.S. goods exports to Brazil were up 35 percent in 2010. These sales support about 250,000 U.S. jobs. And over the last five years we have doubled our exports to Brazil."...

The Real has appreciated 30% in the past 5 years vs. the USD. At this rate we will have no problem exporting to them, problem is, we won't be able to afford to import.

http://www.google.com//finance?chdnp=0&chdd=1&chds=1&chdv=0&chvs=Linear&chdeh=0&chfdeh=0&chdet=1301274866453&chddm=1749727&q=CURRENCY:BRLUSD&ntsp=0
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LeftCoastEng
Obsessed with failed trade
04:52 PM on 03/26/2011
"Teamwork. Cooperation. Intense preparation.
That's what is needed to win at the highest levels of athletic competition."

Along with rules that apply to both teams equally and, literally a level playing field. I'm not picking on Brazil (big soccer fan), but this article is obviously biased toward continuing the disastrous free trade policies that harm the US and most of the world's population. Let's really help each other by implementing common sense industrial policies to manage our trade with each other.
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HUFFPOST SUPER USER
bllnsinchnge
peace, markets, freedom
09:26 PM on 03/27/2011
"hell, there are no rules here, we are trying to accomplish something"
Thomas Edison
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SoylentGreenIsPeople
You know how to use Google too !
12:02 PM on 03/25/2011
Brazil has better Worker protections.
hese job losses occurred very abruptly in the deregulated labor markets of major economic sectors. Half of those currently unemployed were fired in less than 18 months. In the American economic scheme, unions, which represent only a portion of the U.S. workforce, may safeguard workers' rights and negotiate periods of sick leave. But millions have to take unpaid leave if they miss work, even for legitimate reasons. People are also fired without compensation or penalty, which cannot happen in Brazil without "just cause." In America, where labor is considered an expense, financial cutbacks in a recession constitute "just cause" for termination, hence the speed of the layoffs.
http://watchingamerica.com/News/37419/monstrous-unemployment/
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HUFFPOST SUPER USER
gerald4
licensed mechanical and electrical engineer
10:34 AM on 03/25/2011
"U.S. goods exports to Brazil were up 35 percent in 2010. These sales support about 250,000 U.S. jobs. And over the last five years we have doubled our exports to Brazil."

Really?

What products, services, or commodities was the USA exporting to Brazil?

Was the USA exporting US made products, or title to US located assets such as privately owned businesses, factories, casinos, hotels, farms, land, ports, refineries, forests, ports, breweries, distilleries, and other privately owned wealth and assets located in the USA that were created by previous US generations prior to de-industrialization of the USA.
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LeftCoastEng
Obsessed with failed trade
04:45 PM on 03/26/2011
I was wondering the same thing. This link is for a nice website for looking up this kind of data: http://dataweb.usitc.gov/scripts/cy_m3_run.asp?Fl=x&Phase=HTS4&cc=3510&cn=Brazil&HTS2=27&HTS2desc=MINERAL+FUELS%2C+MINERAL+OILS+AND+PRODUCTS+OF+THEIR+DISTILLATION%3B+BITUMINOUS+SUBSTANCES%3B+MINERAL+WAXES

It seems to show that petroleum products were the largest part of the increase. Probably until Brazil builds up their refining infrastructure.
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HUFFPOST SUPER USER
bllnsinchnge
peace, markets, freedom
09:29 PM on 03/27/2011
in those 5 years the dollar fell 30% to the Brazilian Real. I spent a month in brasil last month, no consumer products from the USA or any other country for that matter. They are protectionists in their market.
HUFFPOST SUPER USER
Aneesia
09:01 AM on 03/25/2011
. Le's face it, the money American companies will make down there doesn't go to the workers here, it goes to the upper management and the companies reserves. Keep corporate America from wrecking the Brazilian economy the same way they did here
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SoylentGreenIsPeople
You know how to use Google too !
12:29 PM on 03/25/2011
I think Brazil gets the picture,
http://michael-hudson.com/2010/10/hudson-on-capital-controls-in-ft-today/
09:00 AM on 03/25/2011
Exports were up 16.7% in 2010. Hmm...is that measured in dollars? Because that's probably about the same amount the dollar has tumbled. Take two of our biggest exports, corn had doubled in the last year and cotton has risen 150%. So President Fistbump fires up the printing presses and slashes the value of the dollar so when foreigners buy the same amount of products they used to he can tout that exports are up 16.7%. Oh, and he gets to bash those evil corporations because their profits will be up 16.7% too only they won't hire anybody because they're not actually making more product.
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HUFFPOST SUPER USER
bllnsinchnge
peace, markets, freedom
09:31 PM on 03/27/2011
Brasilian Real appreciation was 10.25% last year, 30% over last 5. Thanks Ben Bernanke
Glad to see someone actually understands the fundamentals.
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HUFFPOST COMMUNITY MODERATOR
LHoney
REINSTATE GLASS STEAGALL!!!
08:26 AM on 03/25/2011
U.S. To Train 3,000 Asian IT Workers
offshore
href="http://www.informationweek.com/news/software/integration/
showArticle.jhtml?articleID=226500202&cid=RSSfeed_IWK_News"
>
http://www.informationweek.com/news/software/integration/showAr
ticle.jhtml?articleID=226500202&cid=RSSfeed_IWK_News >Despite President Obama's pledge to retain more hi-tech
jobs in the U.S., a federal agency run by a hand-picked Obama
appointee has launched a $36 million program to train workers,
including 3,000 specialists in IT and related functions, in
South Asia.

Following their training, the tech workers
will be placed with outsourcing vendors in the region that
provide offshore IT and business services to American companies
looking to take advantage of the Asian subcontinent's low labor
costs.

WTF???
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HUFFPOST SUPER USER
thecreeksedge
08:18 AM on 03/25/2011
It makes a lot of sense to help American businesses get into the action in Brazil. They can employ Brazilian workers to build the Brazilian infrastructure and the American GREEDY CLASS can pad their portfolios and claim enormous bonuses while paying historically low taxes. Something is bound to "trickle down" to the rest of us. That's exactly the kind of mentality that's gotten us into this mess in the first place.
07:22 AM on 03/25/2011
My cousin has invested in Brazilian agriculture with the purchase of over a million acres of sugarcane for alcohol production.
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HUFFPOST SUPER USER
marijam
Independent
07:15 AM on 03/25/2011
We can talk about "getting in the game" when the good old USA finally decides to slap border adjusted VATS on incoming goods. Let's have a level playing field, how about that? If we'd get our trade deficit under control, maybe a lot of our federal deficit problems would be solved.
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cyclone70
When one facepalm isn't enough
07:41 AM on 03/25/2011
that is exactly right. the trade deficit and federal defict are interconnected and related

so few people make the connection whether deliberate or thru ignorance
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RED66
We must return to a Constitutional government.
09:05 AM on 03/25/2011
How did Smoot-Hawley work out for the US and the rest of the world?
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cyclone70
When one facepalm isn't enough
11:24 AM on 03/28/2011
No negative effect
HUFFPOST SUPER USER
realitytrumpsbull
Two 'alves of coconut!
06:03 AM on 03/25/2011
At the same time, there's an enormous opportunity to get the United States out of DEBT. They can have all the international global world financial whatchamacallits, but what they forget is, more promissory spending to support all this globalist shiny-eyed 'stuff' just puts the American public further and further behind the fiscal '8' ball. Brazilians are pretty smart people, they've been doing the ethanol thing for decades, while we let our country get flopped over the oil barrel, not once, not twice, but (count em) THREE times! And, if you read about cities like Detroit, you wonder who needs the foreign aid, exactly. Bluntly put, is the United States in a position financially, to help anybody? Or should we now be applying for foreign aid ourselves? The industry moved to China, some 43,000 factories' worth, the money's moved overseas, to China, and to places like Switzerland and Dubai, and...a lot of Americans are wondering when any of this 'goodness' is going to come back our way, or if it's more of a permanent arrangement. 

I think the banksters have had the White House staked out since before Obama took office, and I think it's time they left our American President alone, and went off over the horizon to play with their money, which is what they really want to do anyway.

I support the idea of a strong Brazilian economy. I think the BRIC business is also good business, Brazil, Russia, India, and China. A good partnership there will help those countries to do their own thing. Which is what I also think we should be doing, here in the US. I think states like Michigan should be working on ethanol, and natural gas, as well as other states. And, I think if Congress is going to spend one more promissory penny on anyone or anything anywhere, it needs to be inside our borders, for a change. Let's DE-globalize a couple notches, and thereby also help other countries to (re)achieve THEIR independence, including independence from us.
08:27 AM on 03/25/2011
Hmm, I think the challenges the US faces are more about the perception in civil society (and thus, in consequence, result in a certain brand of politicians who follow a certain agenda).
For example: The US isn't broken. It's still by far the richest country on this planet, if you sum up all the personal accounts of US citizens. You could - as a people - immediately redeem all your debt and still would have a lot of wealth remaining. I remember only roughly the respective numbers for Germany: While we have a per capita debt of something like 22.000 Euros but a wealth of 80.000+ Euros per capita (only summing up the personal accounts, not businesses or most properties). I think the situation in the US is similar.
My other point would be about the US' addiction to oil or energy in general. If you still built homes with poor or none insulation or preferably drive SUVs then - given all we know about the future oil prices - you cannot simply deal with it on the supply side (drilling) but you have to individually start working on the demand side, too. And that wont happen overnight, but as far as I can tell, you are far away from a social consensus on that matter. On the contrary, I would guess, when it seems that you politically are shifting towards the TP.
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RED66
We must return to a Constitutional government.
09:13 AM on 03/25/2011
Okay, the government confiscates all wealth to pay off our debt.

Then what?
HUFFPOST SUPER USER
Whitemellon
05:05 AM on 03/25/2011
When we get done helping Brazil build and rebuild their infrastructure maybe they can come help rebuild ours. We don't seem to be able to do it ourselves. Plenty of money for bombs but not for bridges.
08:50 AM on 03/25/2011
Building new infrastructure would damage the environment. Can't do that.
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HUFFPOST SUPER USER
AdamWest1313
Hardcore Agnostic
04:49 PM on 03/25/2011
He said rebuild, not new. Comment on what people say, not what you wish they said.
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HUFFPOST SUPER USER
Technowitch
04:30 AM on 03/25/2011
We need to spend money... on sports?!

How about on infrastructure. Research. Education. Science. Technology. Non-oil energy sources.

We don't need more "bread and circuses." We need REAL investments in the future of the human race and this planet.

How about instead of shoveling billions of dollars to corporations which have grown to the gargantuan proportions of dinosaurs we instead invest in small companies and innovators?
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STL BOB
America needs more rugged individualism!
02:42 AM on 03/25/2011
What about that $800,000,000,000 we just spent to stimulate the economy that BANKS AREN'T LENDING TO SMALL BUSINESSES? They take the gargantuan amount of money, sit on it whilst collecting a hefty return, then trickle it out little by little to small businesses only with PERFECT books, leaving the original principal they accepted (our money) untouched.

What a great racket.
01:36 AM on 03/25/2011
How about American business stop outsourcing American manufacturing and jobs and "get in the game" of supporting America?
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STL BOB
America needs more rugged individualism!
02:38 AM on 03/25/2011
You can thank the almighty unions for that. Wisconsin! Wisconsin!
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HUFFPOST SUPER USER
AdamWest1313
Hardcore Agnostic
02:58 AM on 03/25/2011
How do you figure? Any sources to back yourself up? I am guessing not.
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HUFFPOST SUPER USER
marijam
Independent
07:13 AM on 03/25/2011
You really are uninformed about globalization if you really think the only reason American companies go overseas is to get out of unions.