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Secretary's Speech

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CONTACT OFFICE OF PUBLIC AFFAIRS

Tuesday, October 2, 2007

202-482-4883

Secretary of Commerce Carlos M. Gutierrez
AdvaMed Annual Conference
Washington, D.C.

Good evening. Thank you for inviting me to be here. I’m pleased to discuss the competitiveness of the global economy and how we can keep our leadership position in it.

There’s no better audience with which to talk about this, than with a group of innovative, entrepreneurial companies which have contributed to our export growth, job creation and overall economic strength.

Our world is immensely more competitive and integrated than it was 20 years ago. In the last 20 years China, India and the former Soviet Union have opened their previously shuttered economies.

These markets represent more competition, but they also give us access to billions of new customers.

The U.S. has been thriving in this environment. 2006 exports were up 12.7 percent to a record $1.4 trillion dollars. Through July of this year, exports increased by 11.4 percent to $916 billion dollars year-to-date over 2006.

The way to keep the momentum going is to continue opening global markets for U.S. goods and services.

Since President Bush took office, we have implemented free trade agreements with 11 countries. There are currently four more pending before Congress, with Peru, Colombia, Panama and South Korea.

These four agreements would open up markets of more than 126 million people with a combined GDP of $1.1 trillion dollars. The opportunities for U.S. exporters are vast—and importantly, these agreements will serve to level the playing field.

Congress has permitted more than 90 percent of the imports from Peru, Colombia and Panama to enter our country duty free. For example:

  • You face an average 6.7 percent tariff when you export medical instruments into Peru.
  • Peruvian medical machinery parts enter our country with zero duties.
  • When you export an MRI machine or medical needles to Colombia, you face an average 8.8 percent tariff.
  • Colombian medical equipment comes into the U.S. with zero duties.

We think you deserve better.

The medical technology industry is a significant contributor to U.S. economic growth. The over 1,300 companies represented by AdvaMed are some of the most innovative and competitive in the country.

Your ground-breaking products save lives. You also create 350,000 jobs that contribute to the U.S. economy and the wellbeing of your employees.

In 2006, exports of medical, surgical, dental and veterinary instruments totaled $15.9 billion.

Over the first seven months of this year, exports of advance technology medical products grew by 24 percent, more than twice as fast as exports overall.

Exports of medical instruments grew 56 percent from 2001 to 2006, faster than the 42 percent growth in total goods exports.

AdvaMed members produce over 50 percent of the health care technology purchased abroad. Clearly, further opening markets benefits the medical technology industry, and by extension our economy.

Innovation is an increasingly important component of the healthcare industry. For the first time in history, people 65 years old and over will soon outnumber children under age five. This is an enormous achievement of our health care system but it also poses significant challenges.

Innovation can lead to improvements in the delivery of healthcare services, drugs, diagnostic methods, and medical devices.

So, we recognize that innovation is clearly critical to the industry and innovation must be rewarded—and respected—around the world.

Countries that fail to reward innovation often lose industries and funds for future innovation, as well as reduce patient access.

Promoting as well as protecting innovation are important goals of this administration.

U.S. intellectual property today is worth more than $5 trillion dollars, roughly half of our gross domestic product, and greater than the GDP of any other nation in the world.

The Patent and Trademark Office, a bureau of the Commerce Department is focused on ensuring that the U.S. continues to lead the world in IP protection and enforcement.

As you all know, the importance of strong IP protection is not limited to our borders. It’s estimated that IP theft costs U.S. businesses approximately $250 billion annually. Fakes threaten our health and safety, and cause the loss of hundreds of thousands of American jobs.

In the pharmaceutical arena, according to the World Health Organization, 10 percent of medicines worldwide are counterfeit.

The U.S. Government is working to strengthen the protection and enforcement of your IP rights at home and abroad. Addressing weak intellectual property regimes, particularly in countries like China, Russia, and India, continues to be one of our top priorities.

The Administration’s Strategy Targeting Organized Piracy (or STOP) is a joint effort of nine federal agencies to crack down on counterfeit and pirated products globally, and help American businesses secure and enforce their rights.

And STOP is working. At mid-year, the number of IPR seizures by customs and border agents rose 22 percent to more than 7,200 seizures compared to 5,900 at the same point last year. The domestic value of these goods was roughly $110.2 million.

This Administration is very aware that IP-based companies, like those in the medical technology industry, must be able to export their products and services, while ensuring that their innovations are protected.

In closing, let me just say that the United States is at its best when we are leading, open and engaged. Now is not the time to retreat from the global stage—we must further engage in every aspect.

Passing pending trade agreements will create more opportunities for U.S. workers and companies, as well as provide opportunities for us to promote good governance, respect for the rule of law and intellectual property protection around the world.

So, I thank you for your support of our trade agenda and your contributions to the health of our economy and the health of our people.